(Translation)

February 7, 2018

Dear Sirs and Madams,

Name of Company: Name of Representative:Shiseido Company, Limited Masahiko Uotani

President and CEO (Representative Director)

(Code No. 4911; The First Section of the Tokyo Stock Exchange)Contact:

Harumoto Kitagawa Department Director

Investor Relations Department (Tel: +81 3 3572 5111)

Notice of Revision of the Consolidated Financial Result Forecast for the Fiscal Year

Ended December 31, 2017

It is hereby notified that Shiseido Company, Limited (hereinafter, "the Company") revises the consolidated financial result forecast for the year ended December 31, 2017, announced on November 9, 2017, as described below.

1. Revision of consolidated financial result forecast for the fiscal year ended December 31, 2017 (January 1, 2017 through December 31, 2017)

(Millions of yen)

2.

Net sales

Operating income

Ordinary income

Net income attributable to owners of parent

Net income per share (yen)

Previous forecast (A)

985,000

65,000

64,000

5,000

12.52

Revised forecast (B)

1,005,000

80,500

80,500

22,500

56.33

Amount of increase or decrease (B-A)

20,000

15,500

16,500

17,500

Rate of increase or decrease (%)

2.0

23.8

25.8

350

(Reference)

Previous result for the fiscal year ended December 31, 2016

850,306

36,780

37,174

32,101

80.41

Reasons for the revision

In the consolidated results for the fiscal year ended December 31, 2017, both net sales and operating income are expected to exceed the previous forecast and reach new record highs, reflecting strong business results. Net sales are expected to break the 1 trillion yen mark for the first time since the Company's founding. This resulted from such factors as rapid global expansion of prestige brands leading to a strong growth in all regions, and a growth in Japan, China and Travel Retail, spurred by the effects of borderless marketing that leverages the Company's strengths. Major Japan brands are demonstrating growth at a high rate, driven also by capturing a large share of inbound demand. In addition, the Company's strategy of creating a new anti-wrinkle market is becoming a reality as the number of new target product users is growing at a large scale in Japan as well as other Asian countries. Due to these and other factors, net sales are expected to surpass the previous forecast.

Operating income and ordinary income are also expected to largely exceed the previous forecast,

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driven by higher margins accompanying the increase in sales, as well as the reduction in cost of sales ratio due to the growing sales of mid- and high-priced products, improved return on marketing investment, and other factors. Net income attributable to owners of parent was affected by lower tax expenses following the U.S. tax reform at the end of 2017 and lower-than-expected tax expenses on gain from transfer of Zotos International, Inc. business, in addition to the above-mentioned factors. Due to these and other reasons, net income attributable to owners of parent is forecast to largely exceed the original forecast.

Note: The above forecasts are based on information currently available to the Company. Due to various factors, actual results may differ from such forecasts.

- End of News Release -

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Shiseido Co. Ltd. published this content on 07 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 February 2018 06:19:06 UTC.

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