FY2019 First Half Results

from the beginning

2019 First Half Results (January-June) and Full-Year Forecast

Presenter：

Michael Coombs
Chief Financial Officer

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• Key Headlines:

• 2019 Q2: Executive Summary

• Sales Momentum Accelerated across Most Regions

• Prestige, Cosmetics & Personal Care Accelerated Sales Momentum

• China: Maintaining Momentum of Our Prestige Brands

• Japan: Overcoming High 2018 Hurdle with Strong Inbound Sales

• Travel Retail: Continued Strong Sell-Out, Growing over 20%

• Asia Pacific: All Countries, Areas and Categories Grew

• EMEA: Double-Digit Growth Driven by Fragrance and Makeup

• Americas: Recovering Momentum with Continuing Headwinds in Makeup Market

• 2019 1H: Executive Summary

• Summary of 2019 1H Results

• Like-for-Like 1H Net Sales Growth

• Robust Growth Driven by Prestige and Cosmetics Brands

• Cost Structure - 2019 1H

• Improving Out-of-Stock Issues

• Cash Management

• What Drove Our Momentum in 2019 1H?

• 2019 Latest Full-Year Forecast

• 2019 Latest Full-Year Net Sales Forecast

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Continuing Growth Momentum Against Market Uncertainties

Presenter：

Masahiko Uotani
Representative Director, President and CEO

• FY2019 Outlook: Continuing Growth Momentum

• Key Issues for 2H 2019

• Continue to Strengthen Prestige Brands

• Strengthen Prestige Brands in Asia

• New Brand License Agreement TORY BURCH

• Japan: Inbound Sales Maintain Growth in Mid-Single Digits

• Japan: Strengthen Marketing in Response to Consumption Tax Hike

• China: Maintain Strong Prestige Sales

• China: Reinforce Alliances

• China: Strengthen Brand Equity through Sports

• Raise Supply Capability: Steady Progress

• BEAUTY INNOVATIONS FOR A BETTER WORLD

• Achieve Long-Term Growth Adapt to Environment Change

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Q&A

• Q&A 1

• Q&A 2

• Q&A 3

• Q&A 4

• Q&A 5