FY2017 Third Quarter Results and Full-Year Forecast‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌ November 9, 2017 Norio Tadakawa Corporate Officer, CFO Shiseido Company, Limited

In this document, statements other than historical facts are forward-looking statements that reflect our plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause actual results and achievements to differ from those anticipated in these statements.

FY2017 Q3 (First Nine Months): Executive Summary
  • Record third-quarter (first nine-month) results for both net sales and operating income

    Net sales: ¥731.2 billion YoY change in local currency: +15.8% YoY change in yen: +17.4%

    • Growth in the Prestige business continued to accelerate at a remarkable pace on a global level

      Operating income: ¥70.7 billion YoY change: +82.4%

    • The profitability of existing businesses increased, reflecting continued strengthening of marketing investment in growth

      Extraordinary income/ loss: -¥74.7 billion YoY change: -¥90.6 billion

    • Expenses related to voluntary recall of products: -¥3.3 billion

    • Impairment loss on assets associated with Bare Escentuals: -¥70.7 billion Quarterly net income attributable to owners of parent: -¥17.0 billion YoY change: -¥54.1 billion

  • Full-year forecast - Record results for net sales and operating income expected

    Net sales: ¥985.0 billion YoY change: +15.8% (+¥20.0 billion from August announcement) Operating income: ¥65.0 billion YoY change: +76.7% (+¥9.0 billion)

    Extraordinary income/ loss: -¥39.0 billion (-¥35.0 billion)

    • Gain on transfer of Zotos: +¥36.0 billion

Net income attributable to owners of parent: ¥5.0 billion YoY change: -84.4% (-¥27.5 billion)

3

Summary of FY2017 Q3 Results

(Billion yen)

FY2017

FY2016

YoY Change

YoY Change %

YoY Change in Local Currency %

First nine months

% of Net Sales

First nine months

% of Net Sales

Net Sales

731.2

100

622.7

100

+108.5

+17.4

+15.8

Cost of Sales

168.4

23.0

150.6

24.2

+17.8

+11.8

SG&A

492.1

67.3

433.4

69.6

+58.8

+13.6

Operating Income

70.7

9.7

38.7

6.2

+31.9

+82.4

Ordinary Income

70.4

9.6

38.2

6.1

+32.2

+84.2

Extraordinary Income/Loss (net)

-74.7

15.9

2.6

-90.6

Net Income Attributable to Owners of Parent

-17.0

37.2

6.0

-54.1

EBITDA

100.9

13.8

83.0

13.3

+17.8

+21.5

Exchange rates: USD 1 JPY 111.9 (+3.0%), EUR 1 JPY 124.6 (+2.8%), CNY 1 JPY 16.5 (-0.2%)

*1. The "+" and "-" symbols in YoY Change indicate increase and decrease in amount, respectively.

*2. Gain on transfer of intellectual property rights in connection with the Jean Paul GAULTIER and gain on sale of land at the former Kamakura 4

Factory were included under extraordinary income for FY2016.

Shiseido Co. Ltd. published this content on 09 November 2017 and is solely responsible for the information contained herein.
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