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

Domestic Sales

* Data updated in the following month of the current month

Updated

4/27/2015

(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 March]

Domestic cosmetics over-the-counter sales rose 10% from two years ago, continuing to gain momentum from January. The growth rate far exceeded that in the market. Compared with the previous year, over-the-counter sales declined 32%, reflecting the effect of a special factor, the last-minute surge in demand ahead of the consumption tax hike. The major reasons for growth from the fourth quarter are the continuous enhancement of ELIXIR and MAQuillAGE, the expansion of users of PRIOR, which seized the attention of senior citizens, and the good start made by HAKU, to which new high-performance items were added in March, in the brightening cosmetics category, where we excel in research and development. In addition, among counselling cosmetics, sales of clé de peau BEAUTÉ, which was driven by strong sales of new makeup, and sales of the global brand SHISEIDO, which had performed well since the launch of Ultimune, expanded partly due to inbound demand. Of self-selection cosmetics, sales of ANESSA increased explosively. Shipments of toiletries from wholesalers to retailers rose from a year ago thanks to the contribution of TSUBAKI following its complete innovation and large promotions for it for recapturing market share in the haircare category. In April, we restructured our organization for the domestic business into an organization consisting of business divisions tailored to customers' buying behavior. We have integrated the functions of the headquarters and the sales subsidiary to promptly respond to changes in customer needs. We will integrate research and development, marketing, sales, and counter activities. Meanwhile, we will also apply our brand and marketing reforms that have produced results primarily in lines in the mid- to

high-price range to low-priced lines. We will seek to achieve further expansion in over-the-counter sales by making unified ICHIGAN marketing a part of the company culture.

(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

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.

* "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 ea ch year. As a result, the first quarter of FY2015 has already been completed.

*** 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.