Shiseido : 2015 Apr. Monthly Sales(store sales·shipment)

Domestic Sales

* Data updated in the following month of the current month

Updated

5/29/2015

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

(Estimates by Shiseido)

[Overview of Sales in April]

Domestic over-the-counter sales posted strong growth with an increase of 43% year on year (up 11% from two years ago*1), gaining further momentum from January when signs of recovery started to show. This was driven by the continuously strong momentum with a rising trend from January in the strong brands we have built and the addition of sales to overseas tourists in urban areas. The figure for the year-on-year comparison is extremely high, reflecting the low level a year ago due to the effect of the reactionary decline from the last-minute surge in demand ahead of the consumption tax hike.

*1: The comparison from two years ago for over-the-counter sales covers total cosmetic sales (counselling cosmetics and self-selection cosmetics) based on the business segments in fiscal year 2014.

Looking at the domestic over-the-counter sales by major brands, HAKU, to which new high-

performance items were added to strengthen the lineup, and PRIOR for senior citizens contributed to creating new customer interface opportunities. In addition, sales expanded significantly, for the global brand SHISEIDO, driven by Ultimune, which is steadily capitalizing on inbound demand, and for clé de peau BEAUTÉ, driven by strong sales of new makeup. ELIXIR and MAQuillAGE, which were innovated last year, also sustained growth, thanks to continuous promotions. Sales of BENEFIQUE, in which a new haircare product was launched, and ANESSA, which has been enjoying robust sales, also grew. TSUBAKI, which was innovated in March, is contributing to capturing new customers through sampling and the launch of television commercials.

At the start of the new financial year, we completely restructured our organization for the domestic cosmetic business to comprehensively handle the entire range from research and development, marketing and sales operations to store-fronts in order to realize activities focused on customers with our brands at the core. Based on this new organization, we will firmly establish unified "ICHIGAN" marketing, with the entire company working together as one, and steadily nurture robust brands. We were off to a very good start in April and will continue to strengthen marketing investments according to the plan with a view to our customers. We will actively promote the development of BENEFIQUE based on the theme of Skin-Temperature-Based Beauty and assure this momentum by capitalizing on inbound demand and enhancing summer products.

(The year-on-year change in sales of major domestic sales subsidiaries(%)*2)

*2: The year-on-year comparison covers sales of major sales subsidiaries that belong to the business segments of prestige cosmetics, cosmetics, personal care, and digital, as a result of the change in business segments made for fiscal year 2015. The coverage of the over-the-counter sales takes into consideration the consistency with historical data by such means as excluding data for the personal care segment.

Overseas Sales

Updated every quarter

(Updated January, April, July and October)

Updated

4/27/2015

Overview of the First quarter (January to March 2015): 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 fourth quarter of FY2014 were lower overall than the level reached a year ago, reflecting lower sales in Asia/Oceania while sales remained on par with year-ago levels in the Americas and Europe.

Trends in each geographical area were as follows:

- Americas: Overall sales were in line with the level a year ago, mainly reflecting a fall in sales of

ZOTOS, although sales of NARS and fragrances remained firm.

- Europe: Overall sales were on par with the level a year ago, given the solid performance of the fragrance business that launched new products, as well as a decline in sales of the CARITA and DECLÉOR brands as a result of the sale of the brands.

- Asia/Oceania: Although the travel retail business remained strong, we adjusted store inventories to an appropriate level mainly in China. As a result, overall sales in the area declined year on year.

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

*2: The accounting period of overseas subsidiaries of the Shiseido Group runs from January to December each year. As a result, the first quarter of FY2015 has already been completed.

*3: Figures in this document showing increase/ decrease in sales are based on simple aggregation of preliminary figures. Accordingly, they may differ from year-on-year changes of actual sales in each region in local currency terms which are disclosed in our consolidated settlement of accounts.