Shiseido : Notice Regarding Revisions to the Consolidated Forecast, Dividends for FY2020 and Reduction of Executive Compensation

(Translation)

August 6, 2020

Dear Sirs and Madams,

Name of Company:	Shiseido Company, Limited
Name of Representative:	Masahiko Uotani
	President and CEO
	(Representative Director)

(Code No. 4911; The First Section of the Tokyo Stock Exchange)

Contact:	Harumoto Kitagawa
	Vice President
	Investor Relations Department
	(Tel: [phone])

Notice Regarding Revisions to the Consolidated Forecast, Determination of interim

dividend, Revisions to Year-End Dividend Forecast for the Fiscal Year Ending

December 31, 2020, and Reduction of Executive Compensation

Shiseido Company, Limited ("the Company") hereby announces its consolidated forecast for the fiscal year ending December 31, 2020, previously withdrawn on May 12, 2020.

Moreover, the Company has resolved at the Board of Directors Meeting held today to distribute dividends of surplus (interim) with the record date of June 30, 2020 and to revise the year-end dividend forecast for the fiscal year 2020. Details are presented as follows.

Furthermore, the Company has also resolved on a partial reduction of executive compensation in the fiscal year 2020.

1. Revised Forecast for Consolidated Results for the Fiscal Year Ending December 31, 2020 (from January 1 to December 31, 2020)

(Millions of yen unless otherwise stated)

			Ordinary	Net Profit (Loss)		Net Profit
	Net Sales	Operating		(Loss)
	Profit	Attributable to
	Profit		per Share
		(Loss)	Owners of Parent
				(Yen)
Previous forecast (A)	－	－	－	－		－
Revised forecast (B)	953,000	0	(6,500)	(22,000)	(55.08)
Change (B-A)	－	－	－	－
Percentage change	－	－	－	－
(Reference) Results for the	1,131,547	113,831	108,739	73,562	184.18
previous period
(ended December 31, 2020)

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2. Interim Dividends for the Fiscal Year Ending December 31, 2020

		Most recent	Results for the
	Resolution	dividend forecast	previous period
	(announced on	(ended December 31,
		March 12, 2020)	2019)
Record date	June 30, 2020	June 30, 2020	June 30, 2019
Dividend per share	20 yen	－	30 yen
Total dividend amount	7,989 million yen	－	11,982 million yen
Effective date	September 2, 2020	－	September 4, 2019
Source of dividend	Retained earnings	－	Retained earnings

3. Revised Year-End Dividend Forecast for the Fiscal Year Ending December 31, 2020

	Annual dividends per share (yen)
	Interim	Year-end		Full year
Previous forecast	－	－		－
(announced on March 12, 2020)
Revised forecast	－	20		40
Results for the current period	20	－		－
(Resolution)
Results for the previous period	30	30		60
(ended December 31, 2019)

4. Reasons for the Revisions to the Consolidated Forecast, Interim Dividends, and Year- end Dividend Forecast

The Company previously withdrew its consolidated forecast for the fiscal year ending December 31, 2020 due to uncertainties in the business environment and difficulty in assessing their impact on business results. Although the uncertainties continue, the Company has decided to disclose a new forecast calculated based on the currently available information and latest performance trends. The present forecast is based on the assumption that social and economic activities will continue under the influence of COVID-19 in major countries. It does not incorporate the possibility of a state of emergency declaration in Japan or lockdowns in countries of operation due to further spread of COVID-19 in the future.

Concerning dividends, while the Company forecasts a net loss for the fiscal year 2020 due to COVID-19, it will continue to pay stable dividends. However, since the timing of recovery is uncertain and the Company needs to maintain its liquidity, the interim dividend for 2020 is reduced by 10 yen from the 30 yen in the previous fiscal year, to 20 yen per share. The year- end dividend forecast is also reduced by 10 yen to 20 yen. As a result, the annual dividend is forecast at 40 yen per share, down 20 yen from the previous year.

5. Reduction of Executive Compensation in 2020

The Company has received a proposal from its CEO and corporate officers to reduce their remuneration as a step for improving profitability in response to the deteriorating market environment. Following discussions by the Executive Remuneration Advisory Committee, the Board of Directors has resolved to reduce the amount of remuneration as follows.

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1. Executives subject to reductions and reduction amounts President and CEO: 30% of monthly base salary
   Executive Vice President and executive corporate officers: 15% of monthly base salary
   Corporate officers, etc.: 10% of monthly base salary
2. Period of reduction

Five months from August to December 2020

Note: The above forecasts are based on the information currently available to the Company. Due to various factors, actual results may differ from such forecasts. The Company will promptly issue notification of any important matters requiring disclosure, should such arise.

- End of News Release -

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