Financial Results for FY2017

from the beginning

FY2017 Results

Presenter：

Norio Tadakawa
Corporate Executive Officer, CFO

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• FY2017 Sales and Profit Soared to New Historic Highs

• Summary of FY2017 Results

• Consolidated Statements of Cash Flows

• Increase of 7.5 yen in Annual Dividend

• Growth Momentum Accelerated

• Sales Growth in All Regions

• Sales Growth in All Businesses

• Operating Income Increased in All Regions,with Significant Contributions from Japan,China Businesses and Travel Retail

• Japan: 13.1% Growth, Profitability Up to 18%

• Store Sales: 17% Growth in Fourth Quarter

• China: 20.1% Growth, Profitability of 7.8%

• China: Great Leap Forward in Prestige

• Asia Pacific: Achievement of Double-Digit Growth and Double-Digit Profitability

• Asia Pacific: Great Leap Forward in South Korea

• Americas: 6.6% Growth; Improvement in Profitability

• Americas: Start of Turnaround of bareMinerals

• EMEA: 30% Growth, Achieved Profitability

• Dolce&Gabbana: Back on Growth Path

• Travel Retail: Dramatic Growth in Sales and Profit

• Significant Improvement in Cost Structure Trend Toward Sustainable Improvement in Profitability

Speed and Growth Progress of Global Management

Presenter：

Masahiko Uotani
Representative Director, President and CEO

• From Sell-In to Sell-Out Focus

• Bold Marketing Investment

• Improvement of Cost Structure Driven By Strong Sales Growth

• Road to Success: 3 Years of Reform

• 2017: Growth Driven by All Regions

• “To Be a Global Winner”with Global Matrix Organization

• Global Utilization of Trends, Knowledge and Cutting-Edge Research

• “Prestige First” Strategy

• Acceleration of Growth in Prestige Market

• Prestige + Fragrance: Sales Up 1.5 Times, Share in Total Sales: More Than 50%

• SHISEIDO GINZA TOKYO

• cle de peau BEAUTE

• M&A and License Agreement

• Selection and Concentration through Business Transfer and Withdrawal

• Integration of Japan HQ and Sales for Streamlined Operations

• Japan Business: Upturn in Share

• Shift to Brand-Centric Management and Sales

• Be a Winner through Consumer-Oriented Marketing

• Win in “3 Skin Categories”

• Growth into \50 Billion Brand

• Facial Expression Project

• Top Share in Base Makeup

• Brand×Channel Reform Breakdown of Legacy Issues

• Strengthening of Digital Communication and E-Commerce

• Successfully Capturing Inbound Demand

• Borderless Marketing: Shiseido’s Unique Strength

• Personal Care Business: Improvement of Profitability

• Japan: Sustainable High Profitability towards the Next Three Years

• China: Towards Region-Led Operations

• Bold Marketing Investment in Prestige and E-Commerce to Tap into High Growth Potential

• New Growth Drivers: IPSA, NARS

• Expansion of E-Commerce Strategic Partnerships

• Faltering Cosmetics Business Actions to Improve Profitability

• Hong Kong: Sustainable Sales Growth and High Profitability

• China: Significant Improvement of Profitability towards the Next Three Years

• Asia Pacific: Establishment of Regional Headquarters

• Strengthening of Made-in-Japan Brands

• South Korea: Expansion of Share and Achievement of Profitability

• Americas: Strengthening of Human Resources and Organization

• Fresh Start through Structural Reform bereMinerals

• Strengthening of Makeup Brands Acquisition of laura mercier

• Hub for Digital Professionals Digital Center of Excellence

• Acquisition of Promising Cutting-Edge Technologies and Talents

• Americas: Improvement of Profitability through Structural Reform bereMinerals

• EMEA: Integration of Cosmetics and Fragrance Organizations

• DOLCE&GABBANA License Agreement

• EMEA: Recovery of Profitability towards the Next Three Years

• Travel Retail: Transfer of Headquarters Functions to Asia

• Expansion of Growth through Aggressive Investment

• Building of Trust with Operators

• TR: Acceleration of Growth Momentum towards the Next Three Years

• Review of Costs to Fund Investment

• “The Power of People” Drives Sustainable Growth

• Dialogue with 65,000 Employees: Successful Initiatives Driven by Front Line

• People First

• A Multitude of Remarkable Awards

• Promotion of Gender Diversity

• Diversity and Empowerment

• Business Reform with Bottom-Up Approach

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• Ensuring Sustainable Growth

• Acceleration of Growth Momentum

• Be a Global Winner with Our Heritage

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Q&A

• Q&A 1

• Q&A 2

• Q&A 3

• Q&A 4

• Q&A 5