Shiseido : 2014 May. Monthly Sales

Domestic Sales

* Data updated in the following month of the current month

Updated

6/30/2014

(Year-on-year change in sales for the domestic cosmetics sales subsidiary)

Apr. May Jun. July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Cumulative sales

FY +9 -4 -3 +4 +4 -19 +5 +9 +2 +7 +7 +1 +1

2013

FY +8 -5 +1

2014

[Overview of Sales in May]

Sales of the domestic sales subsidiary were down 5% in May from the same month a year ago. Sales of counseling cosmetics decreased compared to a year ago due to the sluggish growth of clé de Peau BEAUTÉ and ELIXIR. as a result of the effects of the reactionary decline in demand following the last-minute demand prior to the consumption tax hike. This offset the steady performance of MAQuillAGE, which was supported by robust sales of foundation and makeup base products launched in February, and BENEFIQUE, which renewed its skincare product range in May. Sales of self-selection cosmetics exceeded those for the same month a year ago, attributable to strong sales of summer products, including ANESSA and AG+. Sales of toiletries decreased compared to a year ago due to the struggling performance of TSUBAKI and SEA BREEZE. Meanwhile, growth in over-the-counter sales of both counseling cosmetics and self-selection cosmetics increased compared to the previous month, although remained negative due to the ongoing impact of the reactionary decline in demand following the last-minute demand prior to the consumption tax hike.

We expect that over-the-counter sales for the first quarter will be affected by the reactionary decline in demand following the last-minute demand prior to the consumption tax hike. However, income conditions will likely improve from July, partly attributable to bonus payments, and we will strive to achieve a sales recovery by implementing aggressive sales promotion activities, centered on skincare

products, and stepping up advertising for summer products.

Overseas Sales

Updated every quarter

(Updated January, April, July and October)

Updated

4/25/2014

Overview of the First quarter (January to March 2014)*: Local currency basis

In the Western cosmetics markets, while demand in the Americas was solid with the modest recovery in personal consumption, overall demand in Europe as a whole remained at the same level as the previous year, despite the adverse conditions in Southern Europe. In the cosmetics markets in Asia, growth continued in China, albeit at a slower pace. Other parts of Asia also saw moderate growth. Shiseido's overseas sales** in the first quarter of FY2014 were lower than the level reached the previous year, reflecting lower sales in the Americas and Europe, offsetting higher sales in Asia/Oceania.

Trends in each geographical area were as follows:

- Americas: Overall sales were lower than a year ago, mainly reflecting a decline in sales of bareMinerals from the previous year following its strong performance from the improved lineup in the holiday sales, despite continued strength in sales of fragrances and NARS.

- Europe: Overall sales were down from a year ago, given a year-on-year decline in sales of mainstay fragrances, although sales increased from the previous year in Russia, in addition to Italy and Spain, due to the strong performance of the global brand SHISEIDO.

- Asia/Oceania: In China, sales rose year on year, mainly reflecting strong sales of a new whitening line in AUPRES. Meanwhile, in other parts of Asia, sales declined from the previous year, primarily due to deterioration in the market environment in Thailand, in addition to the sluggish performance in South Korea. Overall, however, sales in the area increased year on year.

* The accounting period of overseas subsidiaries of the Shiseido Group runs from January to December each year. As a result, the fourth quarter of FY2013 has already been completed.

** Changes in overseas sales in this section are described based on sales in local currency terms, while over seas sales disclosed in the consolidated statement are converted into yen, and are influenced by exchange rate fluctuations. An increase in sales in the consolidated statements could, for example, therefore be a decrease in this section and vice versa. The rate of year-on-year change in the consolidated statement may also differ from that in this section.