Shiseido : 2015 July Monthly Sales(store sales・shipment)

Domestic Sales

* Data updated in the following month of the current month

Updated

8/31/2015

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

(Estimates by Shiseido)

[Overview of Sales in July]

Domestic over-the-counter sales continued to grow, rising 11% year on year, reflecting the results of innovations in brands that have been made since last year and the contribution of increasing sales to overseas tourists.

Looking at over-the-counter sales by brand, clé de peau BEAUTÉ, which continued to sell well among both overseas tourists and existing domestic consumers, the global brand SHISEIDO, sales of which were driven by strong sales of Ultimune among repeat users, and ANESSA, which sold explosively thanks to demand from overseas tourists, contributed to the impressive overall sales performance. Sales of MAQuillAGE, the core makeup brand in the mid-price category, were affected by a launch in August of new products for autumn compared with the launch in July last year. However, sales of the base makeup products in the brand were strong, and overall sales of the brand were on a par with the year-ago level. In personal care, sales of SENKA far exceeded the year-earlier level, reflecting strong sales of its face-wash and body-soap items.

We will strengthen consumer-oriented marketing to ensure the sustainable growth of our brands. From September, innovations of major brands will enter their second year, and we will launch Power Infusing Eye Concentrate of the global brand SHISEIDO's Ultimune, a serum applied around the eye area, Enriched Cream CB of ELIXIR, a nourishing cream, and a new out-of-bath treatment line of TSUBAKI. Meanwhile, in response to demand from overseas tourists, we will add more staff and interpreters at counters. Harnessing the strengths we have from our global operations, we will conduct marketing in accordance with our consumers' buying behavior before, during and after their visit to Japan.

(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

7/31/2015

Overview of the First quarter (April to June 2015): Local currency basis

Shiseido's overseas sales in the second quarter of FY2015 were lower in China and the Americas than the level reached a year ago, remained flat in Europe, and rose in Asia (excluding China).

Trends in each geographic region were as follows.

○ China: Overall sales declined significantly from a year ago because the conditions of contracts with distributors was revised to reengineer the business foundation and cosmetics specialty stores and distributors promoted inventory reduction by refraining from placing orders.

○ Asia (excluding China): As the market continued to grow moderately, the travel retail business

expanded significantly. In addition, the global brand SHISEIDO continued to grow due to the continued strong performance of Ultimune. As a result, overall sales in the area rose year on year.

○ Americas: As the market was strong, NARS continued to grow. However, bareMinerals declined

in reaction to the launch of bareSkin in the same quarter a year ago. Overall sales in the area fell year on year.

○ Europe: As markets contracted, especially in Southern Europe, Germany and Spain struggled.

On the other hand, the performance in Italy remained strong. As a result, overall sales in the area were the same level as a year ago.

*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 second 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.