Shiseido : 2015 Jun. Monthly Sales(store sales・shipment)

Domestic Sales

* Data updated in the following month of the current month

Updated

7/31/2015

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

(Estimates by Shiseido)

[Overview of Sales in June]

Domestic over-the-counter sales continued to exceed the year-ago level by a large margin, with an increase of 17% year on year (up 9% from two years ago*1), reflecting the results of innovations in brands that have been carried out since last year and the contribution of sales to overseas tourists.

*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 over-the-counter sales by brand, clé de peau BEAUTÉ continued to perform well,

helped by the successful promotions of le sérum and sérum blanc, serums. Sales of the global brand SHISEIDO also remained strong, driven by sales of Ultimune, which benefited from an increase in the number of both new and repeat users. Sales rose in ELIXIR, in which Day Care Revolution was promoted, MAQuillAGE, which enjoyed a successful promotion combining TV commercials and sales of limited-sale items, and HAKU, in which line skin lotions and emulsions were added to serums. Sales of ANESSA increased significantly, reflecting its popularity among overseas tourists. In personal care, SENKA, primarily face-wash items, continued to perform well, and sales rose from a year ago as in May.

Going forward, in response to the expansion of the inbound market, we will increase 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. In merchandising, we will ensure the sustainable growth of priority brands. In September, we will launch new lines of BENEFIQUE and Power Infusing Eye Concentrate of the global brand SHISEIDO's Ultimune, a serum to be applied around the eyes.

(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.