FY2020 Results and Mid-to-Long Term Strategy

from the beginning

2020 Results (January ‐ December) and 2021 Outlook

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• 2020 Q4 (October ‐ December)：Executive Summary

• Oct. to Nov.: Recovery Above Expectations Dec. Onward：Momentum Decelerated due to COVID‐19 Resurgence, Mainly in Americas and EMEA

• Q4 Japan：Focused on Consumer Needs Amid Slow Market Recovery

• Q4 Japan：Agile Product Development in Response to Changes in Consumer Needs; Advances in Digital Communication

• Q4 China：Sales from Singles' Day Doubled; Acceleration Both Online and Offline

• Q4 Travel Retail:China Strong, Driven by Hainan, Despite Global Travel Stagnation

• 2020 Recap：Flexible and Agile Response to a VUCA World

• FY 2020 (January ‐ December)：Executive Summary

• FY 2020 Operating Profit vs Outlook

• Americas and EMEA：COVID-Inflicted Losses Expanded

• Market Assumptions for 2021

• FY 2021 Sales Outlook by Reportable Segment

• FY 2021 Outlook

• FY 2021 Operating Profit Outlook：Gradual Profit Recovery due to Continued Investment in Key Growth Areas

• Personal Care Business：Further Growth and Development through Joint Venture

• Scheme of Company Split Accompanying Personal Care Business Transfer

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WIN 2023 and Beyond Medium-to‐Long‐Term Strategy

• Macro Prospects

• Changes in the Global Beauty Market

• Our Targets：WIN 2023 and Beyond,Toward 2030

• WIN 2023 Key Strategies

• Global Business Transformation

• Premium Skin Beauty

• A Holistic Beauty Brand(1)

• A Holistic Beauty Brand(2)

• Hybrid of Luxury and Cutting‐edge Science

• Expand Global Presence

• Accelerate Sales in Asia: Focus on China and Japan

• Develop Emerging Categories

• Accelerate Global DX

• Japan：Rebuild the business foundation to boost profitability

• Japan：Drastic Reinforcement of Brand Value in Cosmetics

• Business Model for Omnichannel Experience

• Japan：Innovate Business Model Fueled by DX

• China：Build a Strong Growth Foundation

• Win Asian Consumers with Cross‐border Marketing

• Asia Pacific and Travel Retail

• Improve Profitability in Americas and EMEA

• Accelerate Innovation

• Supply Network Transformation COGs Reduction：2%

• Foster Talent to Drive Innovation and Transformation

• Diverse Leadership and Organization

WIN 2023 Financial Strategy

• Focus on Profitability and Cash Flow Structural Reforms to Achieve 2023 Targets

• Achieve 15% OPM by 2023 through Fundamental Reforms

• Improve Productivity and Cash Efficiency

• Growth Driven by Asia, Particularly China; Operating Margin Improvement in All Regions

• Enhance Cash Generating Power; Strategic Cash Allocation to Increase Corporate Value

• Establish a Resilient Financial Base by 2023 through Structural Reforms and Secure Cash

• Vision Toward 2030

• BEAUTY INNOVATIONS FOR A BETTER WORLD Our 2030 Goals

• Sustainable Actions and KPIs Toward 2030

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• PERSONAL BEAUTY WELLNESS COMPANY

• To Be a Lifetime Partner through a “Healthy Beauty Platform”

• 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

• Q&A 6

• Q&A 7