From a Leader in Japan to a Winner Worldwide

Representative Director, President & CEO Shiseido Group CEO

Masahiko Uotani Dec. 3rd, 2015

2

1 About Myself

3 VISION 2020

2 Shiseido Overview

4

My Learnings

Brand value is an intangible asset, building total corporate value,

sustainable growth and high ROE.

5

Key Success Factors Strategic marketing for consumer relationships “Think Global, Act Local” Diversity as the source of innovation Leadership to create high performance and

a winning culture Execution! Execution! Execution!

Brand value is an intangible asset, building total corporate value, sustainable growth and high ROE.

But, I was going to enjoy my retirement in… “The world belongs to the discontented.”

My Learnings

6

…And,

Decided to become CEO of Shiseido

My mission & 覚悟 To make Shiseido into

a leading global marketing company

8

1 About Myself

3 VISION 2020

2 Shiseido Overview

Shiseido Heritage

9

Established as a pharmacy in 1872

10

Shiseido Company Mission

To inspire a life of beauty and culture

Shiseido Business Portfolio

Cosmetics

Fragrances

Retail

Foods

Healthcare

Professional Restaurants 11

Shiseido Regional Portfolio

12

Americas

133

Europe

109

China

115 Asia

55

Japan

366

Billions of yen FY Ended March 2015

Presence in 120 countries

53% of sales overseas

Source (Global)：WWD BEAUTY INC’S ANNUAL RANKING OF THE WORLD’S BIGGEST BEAUTY COMPANIES (April 2015) (Japan)：The Nikkei (August 13, 2015)

１ L’ORÉAL ２ UNILEVER ３ P&G ４ ESTÉE LAUDER ５ SHISEIDO

Shiseido as a Leading Japanese Company

１ SHISEIDO ２ KANEBO ３ KOSE ４ POLA ORBIS ５ KAO

Japan Global

13

Shiseido Brands

15

What Has Made Shiseido Competitive

*the International Federation of Societies of Cosmetic Chemist

Technology/Quality

Won 23 IFSCC* Awards

16

What Has Made Shiseido Competitive

Omotenashi as consumer touch point

22,400 Beauty Consultants worldwide

CSR activities that are unique to Shiseido

Environment Culture Women and Beauty

What Has Made Shiseido Competitive

17

Market share

Challenges

Regain Japan business growth

Dramatically increase global business profitability

Rejuvenate Shiseido

-2

0

2

4

6

8

10

12

Japan Global （OP％） 1980 2014

18

2010 2015

19

1 About Myself

3 VISION 2020

2 Shiseido Overview

Understanding Real Issues

20

Key Issues

Vicious cycle

Increase trade rebates (sell-in) Weak

brands/innovation

Sales decline

21

Decline consumer sales (sell-out)

Increase retail inventory

Break the chain!

Reduction of consumer A&P and R&D investments

2015 2020

Sales over

¥1 trillion

Operating income

over ¥ 100 bil.

CAGR 3～5%

CAGR 5～7%

VISION 2020 Goal

22

A winner worldwide

VISION 2020 Roadmap

23

Regain Japan growth Structual reform for

global profitability Brands via marketing

and innovation Global organization Efficiency/

Cost reduction

2018-2020 New Strategy to Accelerate Growth

2015-2017 Rebuild Foundation

New brands via M&A Enter emerging

countries Expand business

portfolio Strong talent and

leaders Keep delivering

efficiency

24

Marketing Innovation

Key Pillars of VISION 2020

BRAND VALUE

People/Talent development

Japan

25

Brand renewals/relaunches/rationalization Brand manager appointment Increased investment in consumer

marketing Seamless organization

Restoring Growth Momentum

26

1H 2014 2H 2014 April May June July Aug Sept Oct

In-store sales growth vs LY

（％）

Capturing Inbound Demand

27

Numbers of tourists (Jan-Sep 2015)

1. China 4.3 mil. +113%

2. Korea 3.2 mil. +44%

3. Taiwan 3.1 mil. +31%

Contributing to growth of total revenue

28

Global Business Update in 2015

Working Not ｗorking Strong prestige

brands Asia/Travel Retail

momentum

China local brands Unsustainable Bare

Escentuals growth

China Business Reforms

29

Cost reduction

Brand portfolio

Store sales focus

BC/BA produc-

tivity

Digital market-

ing Local- ization

Reengi- neer

business

30

Mega Trends Are Changing Consumer Lives

Globalization Urbanization Informatization

Passive → “Active Consumer”

31

DM Center Of Exellence in NY

Own website (watashi+）and web counseling

Cross-border e-commerce

Digital Marketing and E-Commerce

32

Strengthening Digital Communication with Young Consumers

Video posted on YouTube “High School Girl? The Secret of Make Up High School Girls”

33

Travel Retail Opportunities

Increase duty-free counters and BC

Airport advertising and promotion

Dedicated product development

2017 2020 2015 2016 2014

～

～

Cumulative increase of more than ¥100 billion over three years

Increase brand value

Expand Marketing Investment

34

Europe

China

Southeast Asia

Japan

Americas

# of researchers: from 1,000 to 1,500 R&D investment: from 1.8% to 2.5%

35

Strengthen R&D Capabilities

Global Innovation Center

Europe Americas

Generate ¥30-40 billion in 2017, compared with 2014

2.5-5.0 6.0-8.0

（Billions of yen）

China

0.5-1.0

Asia

15.0-18.0

6.0-8.0

Structural Reform to Decrease Costs

Japan

36

Matrix Organization to Achieve “Think Global, Act Local”

37

Europe Americas

Japan

Global Centers of Excellence

Fragrance

Skincare

Makeup/Color

Drive category innovation

Digital

38

39

Diversity to Build Management Capability

Global Management Team

40

President, Shiseido Japan Toru Sakai

President, Shiseido Asia Pacific Jean-Philippe Charrier

President and CEO, Shiseido Americas Marc Rey

President and CEO, Shiseido Europe, the Middle East and Africa Louis Desazars

President , Shiseido Global Travel Retail Philippe Lesne

President and CEO Shiseido Group CEO Masahiko Uotani

41

覚悟 Strong dedication and commitment

In this document, statements other than historical facts are forward-looking statements that reflect our plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause actual results and achievements to differ from those anticipated in these statements.