Shiseido Company, Limited

Mid and Long Term Plan "VISION 2020"

December 17, 2014

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Mid and Long Term Plan "VISION 2020"

Shiseido Company, Limited: Masahiko Uotani
Representative Director, President & CEO

1/40

from the beginning

VISION 2020

Current Status Recap

Favorability Rating of Company Is Decoupled from Domestic Market Share

Operating Profitability Far Below Competitors

Decline in Marketing Investment

Decline in R&D Investment

Fundamental Issues

Shiseido's Potential and Strengths

Targeted Outcomes and Specific Action Plans

Mega Trends Changing Consumers' Lives

The Five Paradigm Shifts

Desired Outcomes and Roadmap

Strategic Directions in Each Region

Toward Brand Enhancement

New Organizational Matrix with Brand and Region Vectors

Think Global, Act Local in Action

Japan: Unify Head Office and Sales Company Functions

A Personnel System That Stimulates and Rejuvenates the Organization

Personnel System Reform in Japan and China:Motivating Beauty Consultants (BC)

Fundamental Strategy for Prestige Business

Fundamental Strategy for Cosmetics Business

Create Strong Brands by Expanding and Changing the Nature of Marketing Investment

Expand Core Brands/Lines and Achieve over \1 Trillion in Sales through Brand Investment

Expand R&D Investment to Innovate

Invest in Categories That Are Essential for Growth

Restructure the China Business

Ceaseless Structural Reform

Raise Structural Reform to the Next Level

Generate Investment Resources to Build a Foundation for Growth

Numerical Targets

Toward Net Sales of Over \1 Trillion

Expand Earnings by Reengineering Businesses

Toward Operating Income of \100 Billion

Shiseido's Key Performance Indicators (KPI)

Allocate the Value Created to Investments for Growth and Shareholder Returns

Signs of Change at Shiseido:ICHIGAN Project

Total Commitment of Management

Rejuvenate Shiseido

Rejuvenate Shiseido

Presentation Material(PDF 4.3 MB)