Commitment to Regain Growth~ Build Back Better Shiseido ~Masahiko Uotani
Chairman and CEO
November 30, 2023

AgendaIntroduction
Current Challenges
Our Strategic Priorities to Regain Growth2

Evolution of Shiseido

Founded1872# 1 in Japan# 3 in the prestige beauty industry
Distributed in120

39,000100

countries/regions

employees

nationalities

3

Driven with KAKUGO and Determination
To make Shiseido a truly global company
that continues shining for the next 100 years

KAKUGO

4

Where We Are in Our Journey■Net Sales■Operating Profit (Core Operating Profit)

Net Sales¥1 tn20142015

20162017

OperatingProfit¥100 bn2018

OperatingMargin10%

Boycottin China

COVID-192019

2020

2021

2022

2023
Forecast5

Current Challenges
 Slower-than-expected recovery from COVID crisis in Japan Disrupted by China volatility- Boycotting due to treated water release (despite no causalrelationship!)- Travel Retail inventory adjustment from Daigou crackdown

Transform into Opportunities for Growth6

Structural Reforms in Japan and China

 Japan, China- Grow topline with strategic investments- Reduce fixed cost base for productivity
 Travel Retail- Rebuild healthy customer base; Travelers to be 70-80%

7Our Strategic Priorities to Regain Growth- Corporate mission and vision- Brands and portfolio- Innovation, DX and technologies- Geography- People and organization

8

Skin Beauty and Wellness CompanyScienceDevice

CleanSkincare Natural
Derma/
Microbiome

MedicalSun
careSecond
Skin

Make Up

Inner/
Ingestible
Wellness

Fragrance

Digital Platform9

Brands and Portfolio
Global Brands

Asian Brands

Fragrance Brands

10Net Sales

2020-2022 CAGR
+mid single
digit%¥200 bn

Our flagship skincare brandNo. 2 skincare brand in major European countries

2016 2017 2018 2019 2020 2021 2022

11

Communicating Value of Japanese Beauty to the World

12

Untapped Opportunities – A Man’s Appeal Manifests in His Skin

13

Net Sales¥100 bn

Highly acclaimed luxury brandBacked by cutting-edge science

2016

2017

2018

2019

2020

2021

2022

14

Clé de Peau Beauté at the Forefront of Innovation15

¥100 bn

2020-2022 CAGR
+over 30%

Net Sales

Continues to inspire creativity, self-expression and limitless artistry
Celebrates diversity
Globally recognized as a bold and provocative brand

2016

2017

2018

2019

2020

2021

2022

2023
Forecast16

¥30 bn

Net Sales

Acquired in 2019
Pioneer of “Clean” category
Strong digital marketing expertise
Global rollout in progress

2020

2021

2022

2023
Forecast

17

Significant Investment in Building Brands
3-year incremental accumulation vs. 2022

Additional ¥100 bn in 2023-25
 Scale core brands for profitability
 Build a process for monitoring brand ROI
 Rationalize non-core brands and SKUs

18

IFSCC Awards: Testament to Superior Technology

サンケア技術

31

11
8
64
1

Shiseido

1Competitors* IFSCC: The International Federation of Societies of Cosmetic Chemists

19

Cutting-Edge Innovations
LiquiForm®

Sun Dual Care

Second SkinMolecuShift Technology20

Skin Diagnosis Utilizing DX
Skin Diagnosis Technology

Beauty DNA Program21

R&D Capability with 1,200 Researchers around the WorldFranceChinaSingapore

US

Global Innovation Center

22

Japan: Structural Reforms
Major cost optimization plans to reach core operating profit ¥50 bn
Core Operating Profit(billion yen)

Cost Optimization

25.0
Gross Profit

50.0

38.0
−13.0
2022

2025
TargetCost Optimization- COGS: ¥5.0 bn- Marketing and Other Expenses: ¥10.0 bn- Organizational Productivity: ¥10.0 bn23

China: Business Transformation to Align with New Reality
Growth strategy-Market growth: from rapid to stable and moderate-

High-prestige (Clé de Peau Beauté, The GINZA)-Decrease dependence on KOL promotion-Tier 3-5 cities-Communicate quality and efficacy
Cost optimization-Rationalize brands and SKUs-

Reorganize for productivity
24

Now is the Time to Implement
Transformation in Japan and China
2023

2024

Implementation

Expected Global Cost Savings¥40 bn+ (2025 vs 2022)
25

Realign Geographic Presence

Quantum leap growth in Americas/EMEA/APAC
Net Sales excl. divest impacts

2019
Americas/EMEA/APAC

2023

To Be*JapanChina/TRWell balancedfootprint* Image26

Americas

 Successfully improved profitability
 Grow core global brands through enriched marketing andlocal brands development
 Aggressively seek for M&A opportunities

27

EMEA

 Successfully improved profitability
 Grow core global brands through enriched marketing andlocal brands development Enforce profitability in Fragrance
 Maximize opportunities in the Middle East28

Asia Pacific Accelerate growth in emerging prestige beauty market
 Drive localized marketing for diverse consumers
 NARS off to a good start in India

NARS counter in India29

People Drive Value Creation: PEOPLE FIRSTOUR MISSION
Corporate value / Business GrowthPeople Diversity
 Families

SocietyShareholders

 Consumers
 Customers
 Partners

 Investors

Corporate Governance30

Become the Front Runner for DE&IFemale

Non-Japanese

Board*140%

Executive Officers*1

40%

Leaders globally*2

58%

Leaders in Japan*338%

Global Leadership Team*1 35%

Mid-Career Hires

In Managerial Positionsin Japan*3*1 As of April 1, 2023
*2 As of January 1, 2023 for Japan; as of December 31, 2022 for overseas*3 As of January 1, 2023

30%31Global Leadership Team32

Shiseido Future University: Develop Global Leaders33

We are All in Together

34Be a Global Winnerwith Our Heritage