Shiseido IrFY2011 Supplemental

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Copyright©2012Shiseido Co., Ltd. All Rights Reserved.No reproduction without permission. 1

Results for Year Ended March 2012

Outlook for Year Ending March 2013

2012-4-27

Hisayuki Suekawa

President & CEO

SHISEIDO Co., Ltd.

SHISEIDO Co., Ltd.

In this document, statements other than historical facts are forward-looking

statements that reflect our plans and expectations. These forward-looking statementsinvolve risks, uncertainties and other factors that may cause actual results and

achievements to differ from those anticipated in these statements.


FY2011 Results

(billions of yen)

2012/3

Results

YoY %Change

LocalCurrency

YoY Amount

Change fromthe value

announcedin January

Net Sales 682.4 +1.7% +4.7% +11.7 +2.4

Domestic 380.0 -0.8% -0.7% -2.9 -0.0Overseas 302.4 +5.1% +11.9% +14.6 +2.4

Operating Income 39.1 -12.0% -3.0% -5.3 -0.9Ordinary Income 39.4 -11.3% – -5.0 -0.6Net Income 14.5 +13.5% – +1.7 -2.5

Overseas Sales Ratio 44.3% (+1.4%)

Operating Margin 5.7% (-0.9%)

Exchange Rate 1 US$ = ¥79.8 (-9%) 1 Euro = ¥111.1 (-5%) 1 RMB = ¥12.4 (-5%)



-1.3%-1.3%53.4%358.451.8%353.8DomesticCosmetics

+12.2%+5.6%45.1%302.646.9%319.7GlobalBusiness

-7.7%-7.7%1.5%9.71.3%8.9Others

+4.7%+1.7%100.0%670.7100.0%682.4Total

12/3 Results 11/3 ResultsYoY%

Change

LocalCurrency% of Net

Sales% of Net

Sales(billions of yen)

Sales by Reportable Segment

% of NetSales

358.4

37.4

14.5

306.5

41.9

82.0

182.7

11/3 Results

53.4%

5.6%

2.1%

45.7%

6.3%

12.2%

27.2%

-1.3%-4.651.8%353.8DomesticCosmetics

-7.9%-3.05.0%34.4Others

+2.8%+0.42.2%14.9Healthcare

-0.7%-2.144.6%304.5Cosmetics

+7.8%+3.36.6%45.1Toiletries

-5.0%-4.111.4%77.9Self-Selection

-0.7%-1.226.6%181.4Counseling

% of NetSales

YoY %

Change

YoYAmount

12/3 Results

Domestic Cosmetics Business Sales

(billions of yen)

*Starting current fiscal year sales of In & On line which had been included in “Healthcare” are included in “Counseling” and figures for prior fiscal year have been retroactivelyrestated.



+5.6%

+1.5%

+6.3%

YoY%

Change% of Net

Sales

302.6

40.9

261.7

11/3 Results

45.1%

6.1%

39.0%

+12.2%+17.046.9%319.7GlobalBusiness

+6.9%+0.66.1%41.5Professional

+13.0%+16.440.8%278.2Cosmetics

% of Net

Sales

LocalCurrency

YoYAmount

12/3 Results

(billions of yen)

Global Business Sales

+11.7%+6.3%+7.718.2%122.119.0%129.7Asia/

Oceania

12/3 Results 11/3 ResultsYoY

Amount

YoY %

Change

LocalCurrency% of Net

Sales% of Net

Sales

Japan 380.0 55.7% 382.9 57.1% -2.9 -0.8% -0.7%

Americas 90.5 13.3% 87.6 13.1% +2.9 +3.3% +13.2%

Europe 82.2 12.0% 78.2 11.6% +4.0 +5.1% +10.7%

Overseas 302.4 44.3% 287.8 42.9% +14.6 +5.1% +11.9%

Total 682.4 100.0% 670.7 100.0% +11.7 +1.7% +4.7%

(billions of yen)

Sales by Geographic Segment



Outlook for the Year Ending March 2013

+7.5

+4.1

+4.4

+24.6

+13.0+37.6

YoY Amount

－

－

－

+10％

+3％+6％

Local Currency

Overseas

Domestic +3.4％393.0

+8.1％327.0

Forecast YoY% Change

Sales 720.0+5.5

％

Operating Income 43.5 +11.2％

Ordinary Income 43.5 +10.3％

Net Income 22.0 +51.6％

Mid-term: ¥25, Year-end: ¥25 (Plan)Dividend

Overseas Sales Ratio 45.4%(+1.1%)

Operating Margin 6.0%(+0.3%) Exchange Rate 1 US$ = ¥80.0 1 Euro = ¥105 1 RMB = ¥12.5

(billions of yen)


Domestic Cosmetics Business:Highly Selective Launch of New Products and Efforts to Create Longtime Sellers

Controlling the number of new product launches

MAQuillAGE Essence Glamorous Rouge TSUBAKI clé de peau BEAUTÉ

Continuedeffort

Double-digitgrowth

Mid-singledigit growth

Over1 million

items

Bringing carefully selected, highly competitive

new products to market

Continuedeffort




Domestic Cosmetics Business:Fostering Existing Products by Strengthening Information Editing Capability

FY2011: Creation of new values FY2012 initiatives

Strengthening existing products

Newinitiative

Continuedeffort

Nationwide activities forinformation development and

beauty solutions forthe senior market

Information editing capability(product and research information)

Storefront activities of beauty consultants

Preparing a rich variety ofbeauty solutions for each season

Informationediting capability X

Activities ofbeauty

consultants


Domestic Cosmetics Business:Introduction of a New Business Model

Mechanism to attract greaternumbers of regular customersby creating opportunities for“customers seeking beauty”

to meet Shiseido

Taking advantage ofthe characteristicsof both websites

and brick-and-mortar storesDeepeningrelationship

withcustomers

Store

Introduction

Introduction

Meetingcustomers

Havingcustomersfeel effects




Watashi+: Situation after the Launch (Opened on April 21, 2012)

Purposes of the websiteTop page of the website

Number of page viewsof the website

Exceeded 1 million page views

Web counseling

Store Navigation system

Online shopping

An extensive menu that lets customers

feel the fun of makeup


Strengthening Marketingwith CRM

Developing and using database

Enhancing Activities with watashi+

Database ofProducts Database ofStores

Database of

In-storeActivities

watashi+website

&Onlineshops

Shiseidoonline(SOL)shops

CustomerDatabase A points program

Customer analysis function Transmission of e-mails with specific

content by each store

“watashi+ store support site”that deepens the relationship

with customers we meet

Linked




China

Highest-priorityinvestment

Aim for growth of mid teens, exceeding market sales growth,and over 100 billion yen

Improving growth potentialwhile maintaining high profitability

Priority investment

Quantity expansion

Q u al i t y i m pr ov em en t

Sustainable growthof specialty stores

Strengthening and expandingmasstige businesses and new markets

Reinforcing approachto the prestige market

Highest priority for injecting marketing costs

and human resources

Approach to injection of

management resources


Global: Prestige Markets

Continuing to provide customers with a unique worldthat is hard to obtain elsewhere

Global brandclé de

peau Beauté




Bare Mineral

Makeup: Fostering READY Skincare: From Japan to Asia

Entry to growth areasStrengthening initiatives in

countries we have already entered

Aiming for a double-digit sales increase

メーキャップの強化 Enhancingcommunications

BE A FORCE OF BEAUTY

Brazil: Entering the market in JuneUK: Channel expansionGermany: Business expansion at department stores

Expanding the skincarecategory

Strengthening makeup


Designers’ Brands and Makeup Artist’s Brand

Aiming for “double-digit” growth in total overseas sales

Four brands of the fragrance business NARS , a makeup artist’s brand

Increasingthe number of stores

Increase the number of flagship stores, strengthenstore promotion, and expansion into more countries

Expansioninto morecountries



+ 4.7 %

+ 6.0 %Achieving steady sales growth

FY20 11 Resu l ts FY20 12 Plan FY2013

To achieve 6% compound annual sales growth on a local currency basis

Targets of the Three-Year Plan

Targets of the three year:Sales = Achieving 6% annual growth, Operating margin = Achieving 10%

・・・

2011 2012 2013 ···

Cost of sales 23.9% ・・・

Marketing costs 23.5%

Personnel costs 23.9%

Other costs 22.9%

Operating margin 5.7% 6.0% 8.0% 10.0%


* The arrows indicate an increase/decrease as a ratio to sales.

Marketing investment in Asia, especially in Japan and China, where market conditions aretough

Mandatory adoption of IFRS was postponed, resulting in the continuation of goodwill

amortization, etc.

Negative factorsfor profits

StructuralReform

Targets of the Three-Year Plan

Targets of the three year:Sales = Achieving 6% annual growth, Operating margin = Achieving 10%



（billions of yen）

13/3

Estimate

YoYamountchange

YoY %change

12/3

Results

YoYamountchange

YoY %change

Investment in FixedAssets*

33.6 -0.7 -2％ 34.3 +7.1 +26％

Property, Plant, andEquipment 21.6 +0 +0％ 21.6 +2.5 +13％

Intangible Assets, etc. 12.0 -0.7 -5％ 12.7 +4.6 +57％

Depreciations 32.7 +2.0 +7％ 30.7 +1.2 +4％

Property, Plant, andEquipment

18.1 +0.7 +4％ 17.4 +0.1 +0％

Intangible Assets, etc. 14.5 +1.3 +10％ 13.2 +1.1 +9％

R&D Expenses 14.8 +0.1 +1％ 14.7 +0.2 +1％

Advertising Expenses 52.4 +3.1 +6％ 49.3 +6.6 +15％

*Capital investment, investment in property plant and equipment, long-term prepaid expenses and intangible asset excluding goodwill and trademarks, etc.

Supplemental Data

Shiseido IrFY2011 Supplemental

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