Shiseido : 2014 Oct. Monthly Sales(store sales·shipment)

Domestic Sales

* Data updated in the following month of the current month

Updated

11/28/2014

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

(Estimates by Shiseido)

*Cosmetics: total of counseling and self-selection cosmetics

[Overview of Sales in October]

Domestic cosmetics over-the-counter sales were down 2% year on year in October, although they exceeded the level of a year ago owing to the double-digit sales growth of the renewed ELIXIR after it was launched on the 21st of the month. Sales of counseling cosmetics were higher than a year ago owing to the strong performance of ELIXIR as well as contributions from clé de peau BEAUTÉ with robust sales of SYNACTIF, the top exclusive line products, and MAQuillAGE with increased sales of Snow Beauty, limited-release base makeup product. Sales of self-selection cosmetics declined year on year due to sluggish sales of the major products like AQUALABEL and INTEGRATE. In addition, subsidiary sales substantially exceeded the year-ago level owing to an increase in purchases by retailers in anticipation of good sales of ELIXIR following its renewal.

Shipments of toiletries from wholesalers to retailers decreased from a year ago due to a decline in sales of TSUBAKI and SENKA.

For the months to come, we will continue aggressive storefront measures and various activities that involve all the employees of headquarters and local offices for the promotion of our major lines. We will also strengthen services for increasing foreign visitors, create attractive sales corners and launch a limited number of products toward the period of peak demand at the end of the year.

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

Note: For "Domestic sales", the year-on-year changes in over-the-counter sales (estimates by Shiseido) as well as the year-on-year changes in sales of sales subsidiary are disclosed from June 2014, and the description of the "overview comment" is changed to statements about over-the-counter sales.

Overseas Sales

Updated every quarter

(Updated January, April, July and October)

Updated

10/31/2014

Overview of the Third quarter (July to September 2014): Local currency basis

In the Western cosmetics markets, while demand in the Americas was solid with a modest recovery in personal consumption, overall demand in Europe as a whole decreased compared to a year ago due to 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 third quarter of FY2014 were higher overall than the level reached in the previous year, reflecting higher sales in all areas, namely the Americas, Europe and Asia/Oceania. Trends in each geographical area were as follows:

- Americas: Overall sales were higher than a year ago, mainly reflecting increasing sales of bareMinerals, which released the liquid foundation bareSkin, as well as continued strength in sales of NARS and fragrances.

- Europe: Overall sales were higher than a year ago, given sales of fragrances, in which new products were launched, although there was a decline in sales of the CARITA and DECLÉOR brands as a result of the sale of the brands.

- Asia/Oceania: In China, sales rose year on year, driven by steady sales of AUPRES and e-commerce. Meanwhile, in other parts of Asia, sales rose from the previous year, owing to a rise in sales, mainly in Taiwan and Malaysia, offsetting the continued severity of the market environment in Thailand. As a result, overall sales in the area increased year on year.

* "Overseas Sales" are related to sales on a shipping basis.

** The accounting period of overseas subsidiaries of the Shiseido Group runs from January to December each year. As a result, the second quarter of FY2014 has already been completed.

*** Changes in overseas sales in this section are described based on sales in local currency terms, while overseas 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.