Brazilian Consumer Industry- Cosmetic Beautiful World -

Shoichiro OkaPresidentSumitomo Corporation do Brasil S.A.

Improvement in Living Standard (生活水準の向上)

Sophistication & Diversification of Needs(ニーズの高度化）

洗う 治す守る隠す

Stage 1 Stage 4Stage 3Stage 2

• Sluggish GDP Growth under Dillma Administration GDP

• Major GDP Driver, but will slowdown this year.Consumer Sector• Continuous Growth due to Increasing Middle Class

people & Improvement in Living Standard.Cosmetic Market

1,595 1,788 1,984 2,252 2,502 2,752 3,033 3,137

6.1% 5.2%-0.3%

7.5%2.7% 1.0% 2.3% 1.0%

12.1% 10.9% 13.5% 11.1% 10.0% 10.2% 3.4%

2007 2008 2009 2010 2011 2012 2013 2014

Consumer Market (BRL bil)

Dillma Administration

Real GDP Growth Rate

(SOURCE: IMF, JETRO)

355.3369.2

387.4408.5

431.8

454.4

2008 2009 2010 2011 2012 2013

World sales in Cosmetic Industory

(USD bil)

28% Growth

(2008 ⇒2013)

(SOURCE: Euromonitor)

Country 2013 Share 2008 Share

USA 1st 16% 1st 18%

China 2nd 10% 3rd 8%

Brazil 3rd 10% 4th 6%

Japan 4th 9% 2nd 12%

Germany 5th 4% 5th 5%

Ranking in Market Share

• US$454bil (47兆円) in 2013Global Market Size

• Especially in Emerging Countries （特に新興国）Growing Industry

• 10% of Global Market Share （世界市場の10%）No.3 in the World

4% 5% 6% 5% 5%

26.328.1

36.4

42.3 41.8 43.0

47.1

51.7

2008 2009 2010 2011 2012 2013 2014 2015

(USD bil)

Cosmetic Sales in Brazil

63% Growth

(2008⇒2013)

InBrazil

maker countrySales(USD)

shareWorldRank

1st natura 5.3 bil 12.4% 14th

2nd Unilever 5.1 bil 12.0% 3rd

3rd Boticário 4.1 bil 9.5% 18th

4th P & G 3.9 bil 9.1% 1st

5th AVON 2.7 bil 6.4% 8th

6th Colegate 2.6 bil 6.0% 4th

7th L’ORÉAL 2.3 bil 5.4% 2nd

Ranking of Market Share in Brazil (2013)

• 28% (Global) vs. 63% (Brazil) in 5 yrs (2008 – 2013)High Growth Rate

• Both National Brands & Multinational BrandsVariety of Players

7% 3% -1% 16% 30% 10% 10%

(SOURCE: Euromonitor)

Leading Cosmetic Formulator

in Brazil

28 years

experience

Shareholder

Sumtomo 81%

880 Customers

850 Products

Background• Brazilian Cosmetic Industry (1.8% of total GDP) with high growth ratio.

• Needs for Sophistication & Diversification of Cosmetic Products to comply with Customers’ demand.

• Brazilian Cosmetic Industry needs ‘State of Art Technologies’ & ‘Cutting Edge Ingredients’ from Overseas.

Our Strategy

• Being a Pioneer for fulfilling the needs in this Growing Market.

• Having a Base for Introducing overseas’ Technologies & Ingredients, and to support Japanese Maker’s advancing to Brazilian market.

• Generating Synergetic effect among Sumitomo’s Global Network in USA, Europe, Asia and Japan.

•Procurement of Ingredients （素材の開発購買） andApplying New Technologies （新技術適用）

•Product Development （商品開発）

•Processing, Blending & Delivery（加工、配合、納入）

Cosmetic Formulator

•Export of own recipe（レシピの輸出）

•Global distributionof own technologies（新技術の世界展開）

Oversea Makers（海外メーカー）

Domestic Makers （国内メーカー）

etc.

Ingredient Suppliers(素材）

• Synergetic effect among our Sister Companies (in USA & Korea)

• Collaboration with Strategic Suppliers (in USA, Europe, Asia and Japan)Utilizing Global Platform

• Importing & Exporting New Technology, New Ingredients and New Products “to & from” Brazil.

Development of Global Strategic Products

• Supporting Brazilian Industry for their development and advancement.

• Complying with Brazilian customer’s needs & demand.

Contribution to Brazilian Industry

PRESPERSE

• Cosmetic Formulator in USA.

• 100% subsidiary company of Sumitomo Co. Group

BIO GENICS

• Cosmetic material technologies company in Korea.

• Sumitomo Co. has 25% of share.