FY2018-20 Corporate Strategy & Plan
- Be a Global Winner with Our Heritage -

from the beginning

FY2018-20 Corporate Strategy & Plan

• Shiseido Group Management Policy

• Beauty Can Change the World: Creating social value with our businesses

• Roadmap to VISION 2020

• Acceleration of Growth Momentum

• Achievements in 2015-17 / Issues to Tackle in 2018-20

FY2018-20 Corporate Strategy and Plan

• Consumers in 2020-2030

• Prestige:Market Size and Projected Growth Rate in 2020

• 2018-20 Key Strategy “Building for the Future

1. Further “Selection and Concentration

• “Prestige First

• Three-year Incremental Sales by Brand Businesses

• Prestige: Three-year Incremental Sales by Category

• PRESTIGE BRANDS

• SHISEIDO GINZA TOKYO

• cle de peau BEAUTE

• Product Innovation

• Recreate Brand Experience through Renewal of Consumer Touchpoints

• High Appeal to the Younger Generation

• Cross-border Marketing for Chinese Consumers

• COSMETICS AND PERSONAL CARE BRANDS

• Acceleration of CPC Brands Growth in Asia

• Aggressive Investment in Marketing

• Improving Productivity: Cost Structure Reform

• Portfolio Reinforcement

2. Acceleration of Digitalization / New Business Development

• Expansion of E-Commerce (EC) Business

• Acquiring EC Capabilities

• Enhancement of Digital Marketing/CRM

• New Business Development

• Work Style Evolution

• ICT ― One Shiseido Model

3. New Value Creation through Innovation

• R&D Investment

• Acquiring Cutting-edge Technologies and Talents: Second Skin

• Exploring New Frontiers

4. Talent and Organization Development to Be a Global Winner:“PEOPLE FIRST

• Increase Investment in Talent Development

5. New Global Management Model

• Global Management Model in Progress

• “CONNECTED MULTI-VALUE CREATION

• Strategic Targets of Each Region

• Three-year Incremental Sales by Regions

FY2018-20 Business Plan

• FY2018-20 Business Plan

• Critical Issues: Rebuilding the Supply Network

• Key Solutions

• Opportunities for Further Growth

• Aspirations by 2030

Regions

Japan

• 1 MARKET LANDSCAPE

• 2 TARGET

• 3 STRATEGIC PRIORITIES

• 4 INBOUND STRATEGY

China

• 1 MARKET LANDSCAPE

• 2 TARGET

• 3 STRATEGIC PRIORITIES

• 4 EC REINFORCEMENT

• 5 CHINA COSMETICS BUSINESS STRATEGY

Travel Retail

• 1 MARKET LANDSCAPE

• 2 TARGET

• 3 STRATEGIC PRIORITIES

Americas

• 1 MARKET LANDSCAPE

• 2 TARGET

• 3 AMERICAS REGION KEY STRATEGY

bareMinerals

bareMinerals

NARS

Laura Mercier

EMEA

• 1 MARKET LANDSCAPE

• 2 TARGET

• 3 STRATEGIC PRIORITIES

Dolce&Gabban

Asia Pacific

• 1 MARKET LANDSCAPE

• 2 TARGET

• 3 STRATEGIC PRIORITIES

FY2018 Forecast / FY2018-20 Financial Strategy

FY2018 Forecast

• FY2018 Forecast by Reportable Segment

• FY2018 Forecasts

FY2018-20 Financial Strategy

• Review of Past 5 Years

• Aiming to Increase Corporate Value over the Medium-to-Long Term

• Improving Capital Efficiency

• Enhancing Profitability: Further Cost Structure Improvement

• Enhancing Capital Efficiency:Improvement of CCC through Proper Inventory Management

• Improving ROIC and Efficiency of Balance Sheet towards 2020

• Change in Shareholder Return Policy

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Q&A

• Q&A 1

• Q&A 2

• Q&A 3

• Q&A 4

• Q&A 5

• Q&A 6