Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

The figures for these Financial Statements are prepared in accordance with the accounting principles based on Japanese law. Accordingly, they do not necessarily match the figures in the Annual Report issued by the Company, which present the same statements in a form that is more familiar to foreign readers through certain reclassifications or summarization of accounts.

Consolidated Settlement of Accounts for the Fiscal Year Ended March 31, 2012 [Japanese Standards] Shiseido Company, Limited Listing: Head Office: URL: Representative: Contact:

Tokyo Stock Exchange, First Section (Code Number: 4911) Tokyo, Japan http://www. group shiseido.com/ Hisayuki Suekawa, President/CEO & Representative Director Akihiro Miyasaka, General Manager, Head of Investor Relations Department Tel. +81-3-6218-5532 Annual Meeting of Shareholders: June 26, 2012 (plan) Filing of Financial Report: June 26, 2012 (plan) Start of cash dividend payments: June 27, 2012 (plan) Supplementary materials prepared: Yes (Supplementary information will be uploaded to the Shiseido Website on Friday, April 27, 2012) Financial results information meeting held: Yes (for investors and analysts, etc.)

1. Performance in the Fiscal Year Ended March 31, 2012 (April 1, 2011–March 31, 2012) * Amounts under one million yen have been rounded down.

(1) Consolidated Operating Results (Millions of yen; percentage figures denote year-on-year change) Net Sales

Operating Income

Ordinary Income

Net Income

Fiscal Year Ended Mar. 2012 682,385 [+1.7%] 39,135 [–12.0%] 39,442 [–11.3%] 14,515 [+13.5%] Fiscal Year Ended Mar. 2011 670,701 [+4.1%] 44,458 [–11.7%] 44,480 [–13.6%] 12,790 [–62.0%] Note: Comprehensive income: Fiscal year ended Mar. 2012: ¥5,456 million (—%) Fiscal year ended Mar. 2011: –¥18,260 million (—%) The Company has applied Accounting Standard for Accounting Changes and Error Corrections (ASBJ Statement No. 24, December 4, 2009) and Guidance on Accounting Standard for Accounting Changes and Error Corrections (ASBJ Guidance No. 24, December 4, 2009). This change has been applied retrospectively to Consolidated Financial Statements for the year ended March 31, 2011. For more details, please refer to “(7) Changes in Accounting Policies” on page 25 of this report.

1

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

Net Income per Share (Yen)

Fully Diluted Net Income per Share (Yen)

Return on Equity

Ordinary Income/ Total Assets

Operating Income/ Net Sales

Fiscal Year Ended Mar. 2012

36.47

36.44

4.9%

5.4%

5.7%

Fiscal Year Ended Mar. 2011

32.15

32.10

3.9%

5.9%

6.6%

Reference: Equity in earnings of affiliates: Fiscal year ended Mar. 2012: –¥122 million Fiscal year ended Mar. 2011: ¥33 million The Company has applied Accounting Standard for Accounting Changes and Error Corrections (ASBJ Statement No. 24, December 4, 2009) and Guidance on Accounting Standard for Accounting Changes and Error Corrections (ASBJ Guidance No. 24, December 4, 2009). This change has been applied retrospectively to Consolidated Financial Statements for the year ended March 31, 2011. For more details, please refer to “(7) Changes in Accounting Policies” on page 25 of this report.

(2) Consolidated Financial Position (Millions of yen, except for per share figures) Net Assets Net Assets Equity Ratio per Share (%) (Yen)

Total Assets

Fiscal Year Ended Mar. 2012

720,707

303,715

40.3%

729.89

Fiscal Year Ended Mar. 2011

739,120

320,127

41.6%

772.14

Reference: Equity at year-end (consolidated): Fiscal year ended Mar. 2012: ¥290,494 million Fiscal year ended Mar. 2011: ¥307,269 million Note: Above figures for Year-End Cash Dividends Per Share (Year-End), Cash Dividends per Share (Full Year), Total Dividends Paid (Full Year), Payout Ratio (Consolidated), and Dividends Paid/Net Assets (Consolidated) pertaining to the year ended March 31, 2012 are based on estimated figures as of April 27, 2012.

(3) Consolidated Cash Flows Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

(Millions of yen) Cash and Cash Equivalents at Year-End

Fiscal Year Ended Mar. 2012

52,599

(20,668)

(35,482)

82,974

Fiscal Year Ended Mar. 2011

67,586

(30,303)

(39,571)

88,592

2. Cash Dividends Cash Dividends per Share (Yen)

(Cut-off Date)

1Q

2Q

3Q

Year-End

Full Year

Total Dividends Paid (Full Year) (Millions of Yen)

Payout Ratio (Consolidated)

Dividends Paid/ Net Assets (Consolidated)

Fiscal Year Ended Mar. 2011

—

25.00

—

25.00

50.00

19,895

155.5%

6.1%

Fiscal Year Ended Mar. 2012

—

25.00

—

25.00

50.00

19,899

137.1%

6.7%

Fiscal Year Ending Mar. 2013 (plan)

—

25.00

—

25.00

50.00

2

90.5%

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

3. Projections for the Fiscal Year Ending March 2013 (April 1, 2012–March 31, 2013) (Millions of yen, except per share figures; percentage figures denote year-on-year change) Net Sales

First Half Ending Sept. 2012 Fiscal Year Ending Mar. 2013

Operating Income

Ordinary Income

Net Income

Net Income per Share (Yen)

345,000

[+2.6%]

17,500 [–18.7%] 17,500 [–19.8%]

8,000 [–12.0%]

20.10

720,000

[+5.5%]

43,500 [+11.2%] 43,500 [+10.3%] 22,000 [+51.6%]

55.28

Notes (1) Significant changes in subsidiaries during period (changes in specific subsidiaries due to change in scope of consolidation): None (2) Changes in accounting policies; changes in accounting estimates; restatements 1) Changes in accounting policies due to amendment of accounting standards: Yes 2) Other changes in accounting policies: Yes 3) Changes in accounting estimates: None 4) Restatements: None (3) Shares outstanding (common stock) at year-end 1. Number of shares outstanding (including treasury stock) Fiscal year ended Mar. 2012: 400,000,000 Fiscal year ended Mar. 2011: 400,000,000 2. Number of treasury shares outstanding Fiscal year ended Mar. 2012: 2,002,324 Fiscal year ended Mar. 2011: 2,052,792 3. Average number of shares over period Fiscal year ended Mar. 2012: 397,974,132 Fiscal year ended Mar. 2011: 397,864,059 Note: For information on number of shares used as basis for calculating net income per share, please refer to “(Per Share Data)” on page 29.

Implementation status of review procedures At the time of disclosure of this report, review procedures for financial statements pursuant to the Financial Instruments and Exchange Act had not been completed. Appropriate use of business forecasts; other special items 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 our actual results and achievements to differ from those anticipated in these statements. Please refer to page 5 “1. Operating Results, 1.1 Analysis of Operating Results, (4) Outlook for the Fiscal Year Ending March 31, 2013” for information on preconditions underlying the above outlook and other related information.

3

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

Contents 1. Operating Results ········································································································································ 5 (1) Analysis of Operating Results·············································································································· 5 (2) Analysis of Financial Position ··········································································································· 10 (3) Basic Income Distribution Policy; Cash Dividends··········································································· 11 (4) Business and Other Risks··················································································································· 14 2. The Shiseido Group ··································································································································· 12 3. Management Policies································································································································· 12 (1) Basic Corporate Policies ···················································································································· 12 (2) Medium- and Long-Term Management Strategies and Numerical Management Targets ················· 13 (3) Issues to Address································································································································ 13 4. Consolidated Financial Statements············································································································ 17 (1) Consolidated Balance Sheets ············································································································· 17 (2) Consolidated Statements of Income··································································································· 19 (3) Consolidated Statements of Changes in Shareholders’ Equity ·························································· 21 (4) Consolidated Statements of Cash Flows···························································································· 23 (5) Note on Assumptions for Going Concern ·························································································· 25 (6) Basis of Presenting Consolidated Financial Statements ···································································· 25 (7) Changes in Accounting Policies········································································································· 25 (8) Supplementary Information ··············································································································· 26 (9) Notes Concerning Consolidated Financial Statements ······································································ 26 5. Other·························································································································································· 30

4

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

1. Operating Results (1) Analysis of Operating Results (Review of Performance in the Fiscal Year Ended March 2011) In the fiscal period under review (year ended March 31, 2012), consolidated net sales totaled ¥682.4 billion, up 1.7% from the previous year. Domestic sales edged down 0.8%, to ¥380.0 billion, due to several factors. In addition to a changing market structure—characterized by polarization towards high-priced and low-priced products since the so-called Lehman Shock—theses included the impact of the Great East Japan Earthquake and ongoing overall market contraction. By contrast, overseas sales increased 5.1%, to ¥302.4 billion, bolstered by sustained growth in Europe and the United States, together with continued high growth rates in Asia, especially in China. This was despite the impact of the strong yen. (For overseas subsidiaries, the “fiscal year” refers to the period from January 1 to December 31, 2011.) Although the Group worked hard to improve the cost of sales ratio and emphasize efficient expenditure allocations, operating income declined 12.0%, to ¥39.1 billion. This was due aggressive marketing investments targeting growth in Japan and overseas. Ordinary income fell 11.3%, to ¥39.4 billion. Despite the decrease in operating income, net income rose 13.5%, to ¥14.5 billion, owing mainly to a significant decline in the previous year caused by extraordinary losses.

Consolidated Performance (Sales) Fiscal Year Ended Mar. Share of Total (%) 2012

Fiscal Year Ended Mar. Share of Total (%) 2011

(Millions of yen) Year-on-Year Increase/Decrease Amount

% change

Domestic Cosmetics Business

353,789

51.8%

358,408

53.4%

–4,619

–1.3%

Global Business

319,678

46.9%

302,632

45.1%

+17,046

+5.6%

8,917

1.3%

9,660

1.5%

–742

–7.7%

Sales Total

682,385

100.0%

670,701

100.0%

+11,684

+1.7%

Domestic Sales

379,963

55.7%

382,866

57.1%

–2,902

–0.8%

Overseas Sales

302,422

44.3%

287,835

42.9%

+14,586

+5.1%

Others

(Income) Fiscal Year Ended Mar. 2012

Domestic Cosmetics Business

Ratio to Net Sales (%)

Fiscal Year Ended Mar. 2011

Ratio to Net Sales (%)

Year-on-Year Increase/Decrease Amount

% change

29,459

8.3%

33,573

9.3%

–4,114

–12.3%

Global Business

8,212

2.6%

9,025

3.0%

–813

–9.0%

Others

1,381

9.9%

1,838

11.4%

–457

–24.9%

82

—

20

—

+61

—

Operating Income Total

39,135

5.7%

44,458

6.6%

–5,323

–12.0%

Ordinary Income

39,442

5.8%

44,480

6.6%

–5,037

–11.3%

Net Income

14,515

2.1%

12,790

1.9%

+1,724

+13.5%

Elimination

5

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(Review by Reportable Segment) (1) Domestic Cosmetics Business  Sales In the Domestic Cosmetics segment, sales were down 1.3%, to ¥353.8 billion. In the cosmetics business category, sales declined year-on-year, but the decrease was slight. Sales in the healthcare business were maintained at previous-year levels. In the cosmetics business, we stepped up efforts centered on new products and worked exhaustively to raise product value and refine our customer-oriented proposals activities. From the perspective of raising product value, we reduced the number of new product launches to around half, while releasing only carefully selected products deemed to be highly supported by customers. We also focused on nurturing current mainstay products. With respect to customer-oriented proposals activities, we concentrated on customers’ lifestyle changes and latent needs, and proposed solutions to help customers lead comfortable lives, free of displeasure and dissatisfaction. This started with “Cool Life Proposal”, aimed at helping customers stay cool and comfortable during the electricity shortages in summer, and was followed by “Healing Proposal” in autumn, “Warm Winter Life Proposal” in winter, and “Refreshing Life Proposal” in spring. In these ways, we deployed our products and product lineups, complemented by information and hands-on communication, to propose solutions geared to season-specific life realities via all possible channels. As a result, a number of offerings performed well during the year. These included clé de Peau Beauté, a top-end prestige brand; the MAQUillAGE makeup mega line, promoted as a long-seller by honing the number of core products; the Integrate self makeup line, which benefited from continued popularity of its mascaras and eye liners; and the TSUBAKI hair-care brand, which underwent renewals of both content and communication strategy. We also developed a new business model that combines the Internet with brick-and-mortar stores to create new customer interface opportunities, with a view to launch in April 2012. In the healthcare business category, we maintained sales on a par with the previous year. Amid intensifying competition in the market for collagen-related foods, in addition the mainstay The Collagen line of skin rejuvenation food, we launched Bénéfique Collagen Royal Rich as part of the Bénéfique line, sold exclusively to cosmetics specialty stores. In these ways, we upgraded our lineup of collagen-related products.  Operating Income The Domestic Cosmetics segmented posted a 12.3% decline in operating income, to ¥29.5 billion. This was due to a marginal decrease stemming from the fall in revenue, as well as aggressive marketing investments aimed at growth.

(2) Global Business  Sales Sales in the Global Business segment rose 5.6%, to ¥319.7 billion, thanks to various factors. These included continued strong growth in Europe and North America, sustained high growth rates in Asia, including China, and a healthy performance by the professional business. Sales in local-currency terms increased 12.2%. At the prestige end of the cosmetics business, the global brand SHISEIDO achieved sales growth in various world countries. Key performers here included the SHISEIDO Benefiance anti-aging line and the SHISEIDO Future Solution LX premium skincare line. In addition, the NARS makeup artist brand generated a significant sales increase, especially in North America. In addition, the designer fragrances sold by Beauté Prestige International posted healthy sales growth, highlighted by the launch of the Elie Saab fragrance in July 2011, and the travel retail business also performed well. Moreover, we made a solid start to our online sales business in the United States.

6

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

During the year, we strengthened sales in existing North American stores of Bare Mineral, a mineral-based makeup brand of Bare Escentuals, Inc., acquired in 2010. We also launched Ready, a new solid-type makeup, which contributed to continued growth. In the top-priority Chinese market, we faced intensifying competition from European, North American, and other companies. In the department store channel, Aupres, a dedicated brand for the Chinese market, maintained a healthy performance, benefiting from a renewal of its complexion-lightening skincare line. Other highlights included continued solid performances by URARA, a dedicated brand for Chinese cosmetics specialty stores, and Pure & Mild. Overall, therefore, we achieved sales growth well in excess of overall Chinese market growth. In addition, we made a solid start to our online sales business in that nation. In the Asian masstige market, we posted higher sales of Za, a comprehensive skincare and makeup brand targeting middle-income earners. We also undertook a full-scale rollout of the TSUBAKI brand in China, and we introduced Senka, a highly functional skincare brand in the low-price segment, in Taiwan, Hong Kong, and elsewhere. In newly emerging nations, we continued expanding sales in Russia. We also enjoyed business growth in new markets, launching sales in Panama, Armenia, Belarus, and other nations. As of December 31, 2011, the global brand SHISEIDO had a presence in 87 nations (including Japan). In the professional division, we enjoyed a major market hit in Japan with The Hair Care Adenovital, a next-generation hair-growth treatment incorporating “adenosine”, an active medicinal ingredient. Overseas, we reported a sales increase in China, where the market growth has been significant. Three other Group companies also recorded higher sales: Carita and Decléor, which sell products to esthetic and beauty salons, mainly in Europe; and Zotos International, which sells products to beauty salons, mainly in North America. Accordingly, the professional division enjoyed steady year-on-year sales growth.  Operating Income Operating income in the Global Business segment declined 9.0%, to ¥8.2 billion. This was due primarily to aggressive investments in growth markets, centering on China.

(3) Others  Sales Sales from other business declined 7.7%, to ¥8.9 billion. In the frontier sciences division, sales of cosmetics and bio-hyaluronic acid, a medical-use pharmaceutical products, performed well. We also increased sales of Navision, a line of cosmetics for medical institutions derived from our beauty care skin research. In addition, we augmented the 2e line of hypoallergenic cosmetics for medical institutions with the launch of 2e Baby Plus, a line for infants and young children, attracting a favorable response. Due to our withdrawal from low-profit medical-use pharmaceuticals in the previous year, however, year-on-year sales of other businesses were down.  Operating Income Operating income in this segment fell 24.9%, to ¥1.4 billion, due to a marginal loss stemming from the sales decline.

7

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(Outlook for the Fiscal Year Ending March 2013) Consolidated Net Sales (Billions of yen)

Fiscal Year Ending Mar. 2013 (Estimate) 365.5 345.5 9.0

Fiscal Year Ended Mar. 2012 (Results) 353.8 319.7 8.9

Net Sales

720.0

682.4

37.6

5.5%

Domestic Sales

393.0

380.0

13.0

3.4%

Overseas Sales

327.0

302.4

24.6

8.1%

Domestic Cosmetics business Global Business Others

Overseas Sales Ratio

45.4%

Year-on-Year Increase/Decrease Amount 11.7 25.8 0.1

% change 3.3% 8.1% 0.9%

44.3%

Consolidated Income (Billions of yen)

Year-on-Year Increase/Decrease

Fiscal Year Ending Mar. 2013 (Estimate)

Percent of Net Sales

Fiscal Year Ended Mar. 2012 (Results)

Percent of Net Sales

Amount

% change

43.5

6.0%

39.1

5.7%

4.4

11.2%

Ordinary Income

43.5

6.0%

39.4

5.8%

4.1

10.3%

Net Income

22.0

3.1%

14.5

2.1%

7.5

51.6%

Operating Income

Consolidated Performance Indicators Fiscal Year Ending Mar. 2013 (Estimate) Return on Equity

7.5%

Fiscal Year Ended Mar. 2012 (Results) 4.9%

Year-on-Year Increase/Decrease 2.6%

Net Income per Share (Yen)

55.28

36.47

18.81

Payout Ratio consolidated

90.5%

137.1%

–46.6%

Dividends per Share (Yen): Interim Year-End

25.00 25.00

25.00 25.00 (plan)

— —

In the year ending March 2013, the Group projects a year-on-year increase in net sales after considering several factors. These include a recovery in domestic sales, ongoing revenue growth in Europe and North America, and expanded sales in China and newly emerging nations. By contrast, earnings will be affected by our continued strengthening of marketing investments in Japan and overseas aimed at future growth. Owing to the marginal gain stemming from higher net sales, however, we look forward to year-on-year increases in operating income and ordinary income. For the year, we forecast consolidated net sales of ¥720 billion (up 5.5% year-on-year), operating income of ¥43.5 billion (up 11.2%), ordinary income of ¥43.5 billion (up 10.3%), and net income of ¥22 billion (up 51.6%).

8

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

Outlook by Reportable Segment Domestic Cosmetics Business In the year ending March 2013, we expect the domestic cosmetics market to follow a moderate recovery path, despite some uncertainty about the future. In our Domestic Cosmetics segment, we will emphasize customer-oriented proposal activities tailored to each season while making products that attract enduring customer loyalty. In these and other ways, we will work to raise product value and target sales growth via ongoing refinement of our marketing activities. After also considering sales from our new business model, which uses the Internet and was launched in April 2012, we project a year-on-year increase in segment sales. We also look forward to growth in segment operating income thanks to the marginal gain from higher segment sales. This is despite stepped up investments related to marketing investments in existing businesses. Global Business The pace of growth in the European cosmetics market is slowing due to the impact of the financial crisis. The North American cosmetics market is expected to maintain positive growth amid an economic recovery trend, despite some uncertainty. In Asia, meanwhile, we look forward to continued market growth, especially in China. In this context, the Shiseido Group will strive for renewed business growth through several initiatives. These include concentrated investments in six brands under our Global Mega-Brand Strategy, continued fostering of our designer fragrance and makeup artist brands, allocation of business resources into the growth-engine Chinese market as a top priority, and enhanced responses to newly emerging markets. Through these efforts, we forecast a year-on-year increase in segment sales on a local-currency basis. We also expect a year-on-year rise in segment operating income, despite the effects of the strong yen and higher marketing costs. Others Going forward, we will continue striving to reinforce our presence in the frontier science division, which is underpinned by cosmetics raw materials, medical-use pharmaceuticals, chromatography-related machinery, and cosmetics for medical institutions. For the segment, we forecast that sales and operating income will remain mostly unchanged. We base our predictions on exchange rates of ¥80 per U.S. dollar, ¥105 per euro, and ¥12.5 per Chinese yuan.

(Reference) Parent Company and Group Subsidiaries: Review by Geographical Area and Overseas Sales Parent Company and Group Subsidiaries: [Sales by Geographic Area] Fiscal Year Ended March 2012

Japan

(Millions of yen) Year-on-Year Increase/Decrease Amount % change

Share of Total (%)

Fiscal Year Ended March 2011

Share of Total (%)

381,328

55.9%

383,847

57.2%

–2,518

–0.7%

Americas Europe Asia/Oceania

86,752 89,218 125,086

12.7% 13.1% 18.3%

85,461 84,322 117,070

12.7% 12.6% 17.5%

+1,290 +4,895 +8,015

+1.5% +5.8% +6.8%

Outside Japan

301,057

44.1%

286,854

42.8%

+14,202

+5.0%

Net Sales

682,385

100.0%

670,701

100.0%

+11,684

+1.7%

9

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

Parent Company and Group Subsidiaries: [Operating Income by Geographic Area] (Millions of yen) Year-on-Year Increase/Decrease Amount % change

Fiscal Year Ended March 2012

Share of Total (%)

Japan

12,535

3.0%

16,665

4.1%

–4,129

–24.8%

Americas Europe Asia/Oceania

4,784 5,154 14,510

5.0% 5.5% 11.4%

1,563 6,388 16,910

1.6% 7.2% 14.3%

+3,220 –1,233 –2,399

+205.9% –19.3% –14.2%

Outside Japan

24,449

7.7%

24,862

8.2%

–412

–1.7%

2,930

—

–780

—

44,458

6.6%

–5,323

–12.0%

Elimination Operating Income

2,149 39,135

Fiscal Year Ended March 2011

— 5.7%

Share of Total (%)

[Overseas Sales (by Destination)]

Fiscal Year Share of Ended March Total (%) 2012

Fiscal Year Share of Ended March Net Sales 2011

(Millions of yen) Year-on-Year Increase/Decrease % change in local Amount % change currency terms

Americas Europe Asia/Oceania

90,484 82,219 129,717

13.3% 12.0% 19.0%

87,590 78,193 122,051

13.1% 11.6% 18.2%

+2,894 +4,026 +7,666

+3.3% +5.1% +6.3%

+13.2% +10.7% +11.7%

Overseas Sales

302,422

44.3%

287,835

42.9%

+14,586

+5.1%

+11.9%

(2) Analysis of Financial Position As of March 31, 2012, total assets amounted to ¥720.7 billion, down ¥18.4 billion from a year earlier. The decline stemmed mainly from the yen’s appreciation. Total liabilities decreased ¥2.0 billion, due largely to repayment of interest-bearing debt, and net assets were down ¥16.4 billion. Accordingly, the equity ratio at fiscal year-end was 40.3%, down 1.3 points from 41.6% a year earlier. Net cash provided by operating activities amounted to ¥52.6billion. Net cash used in investing activities totaled ¥20.7 billion. This was mainly due to purchases of property, plant, and equipment. Net cash used in financing activities was ¥35.5 billion, due primarily to repayment of interest-bearing debt and cash dividend payments. As a result, cash and cash equivalents at the end of the year amounted to ¥83.0 billion, down ¥5.6 billion from March 31, 2010. In the year ahead, we do not expect cash and cash equivalents to change significantly.

10

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

Consolidated Cash Flows (Summary) (Billions of yen) Cash and Cash Equivalents at Beginning of Term 88.6 Net Cash Provided by Operating Activities Net Cash Used in Investing Activities

52.6 (20.7)

[Investments in Fixed Assets]

[(29.2)] *

Net Cash Used in Financing Activities

(35.5)

Effect of Exchange Rate Changes on Cash and Cash Equivalents

(2.1)

Net Change in Cash and Cash Equivalents

(5.6)

Cash and Cash Equivalents at End of Term

83.0

*Investments in Fixed Assets Acquisition of Property, Plant, and Equipment Increase in Intangibles Long-Term Prepaid Expenses

(Billions of yen)

(17.7) (7.0) (4.5)

As shown below, until the year ended March 2009 the equity ratio was above 50% based on book value. Due to a significant increase in total assets associated with the Bare Escentuals acquisition in the year ended March 2010, however, the equity ratio has fallen to the 40% range. At March 31, 2012, the equity ratio based on market price was mostly unchanged from a year earlier (in the 70% range). The debt repayment term (3.5 years) is generally regarded as a safe level.

Cash Flow Indexes Fiscal Year Ended Mar. 2008 Equity Ratio (%) Equity Ratio Based on Market Price (%) Debt Repayment Term (Years) Interest Coverage Ratio (Times)

Fiscal Year Ended Mar. 2009

Fiscal Year Ended Mar. 2010

Fiscal Year Ended Mar. 2011

Fiscal Year Ended Mar. 2012

56.6

55.6

44.9

41.6

40.3

157.6 0.8 39.1

95.0 1.5 23.6

104.1 3.1 45.4

77.5 2.9 32.8

78.9 3.5 27.3

Notes: 1. Equity ratio: (Net assets – Stock acquisition rights – Minority interests) ÷ Total assets Equity ratio based on market price: Market value of total stock ÷ Total assets Debt repayment term: Interest-bearing debt ÷ Operating cash flows Interest coverage ratio: Operating cash flows ÷ Payment of interest expenses 2. Each index is calculated based on consolidated financial figures. 3. Market value of total stock is calculated by multiplying the closing stock price at the end of the term by the number of shares outstanding at the end of the term (after deduction of treasury stock). 4. Interest-bearing debt refers to all liabilities listed in Consolidated Balance Sheets that incur interest. For payment of interest expenses, amounts shown in the Consolidated Statements of Cash Flows are used. 5. Previously, the Company’s subsidiaries in the Americas treated product samples and promotional materials used in retail store sales activities as assets at the time of acquisition and expenses at the time of shipment to customers, i.e, retail stores. Effective the fiscal year in review, however, such items are now treated as expenses at the time of acquisition, in the interests of consistency in internal Group accounting treatment. The change in policy has been applied retrospectively to the Consolidated Financial Statements for the previous fiscal year. As a result of this change, in the previous fiscal year, the equity ratio declined 0.1 point and the equity ratio based on market price increased 0.1 point, compared with the previous accounting method.

(3) Basic Income Distribution Policy; Cash Dividends Our total shareholder return policy emphasizes maximizing returns to shareholders through direct means, in addition to generating medium- and long-term share price gains. To this end, our fundamental policy is deploy to growth-oriented strategic investments to drive increases in earnings and improvements in capital efficiency, which will lead to medium- and long-term increases in dividends and higher share prices. Going forward, our medium-term profit return objective is to achieve a consolidated dividend payout ratio of 40%. To this end, we will prioritize payment of stable dividends while implementing share buybacks in a flexible manner. 11

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

The Company plans to declare a year-end cash dividend of ¥25.00 per share, as originally planned. Coupled with the ¥25.00 interim dividend, this will bring total annual dividends to ¥50.00 per share. The consolidated dividend payout ratio will be 137.1% due partly to the decline in net income stemming from an increase in deferred income taxes. In the fiscal year ending March 2013, we plan to pay interim and year-end dividends of ¥25.00 per share each, for total annual dividends of ¥50.00.

(4) Business and Other Risks Business and other risks that could potentially affect the Shiseido Group are described in its most recent Securities Report (filed on June 24, 2011). Since there are no major changes, that section has been omitted from this report. (Shiseido Website) http://group.shiseido.co.jp/ir/library/syoken/pdf/2010/1103all.pdf

2. The Shiseido Group For details about major changes in subsidiaries during the period, please refer to “Scope of Consolidation” under “(6) Basis of Presenting Consolidated Financial Statements” on page 25.

3. Management Policies (1) Basic Corporate Policies Shiseido has a corporate philosophy—“Our Mission, Values and Way”—that transcends nations, organizations, and brands. This philosophy sets a course for all of our activities and ensures that each and every employee shares the Shiseido raison d’être and spirit. “Our Mission” sets out a universal identity that forms the foundation of the Shiseido Group by identifying how and with what we can play a useful role in society. “Our Values” establishes the approach shared by all Group employees in order to realize “Our Mission.” “Our Way” sets out the conduct required of employees when working with different stakeholders in order to accomplish “Our Mission.” It sets out standards of behavior that include not only complying with the laws and regulations of each country or region and in-house regulations, but also performing duties to the highest of ethical standards. [Our Mission] We cultivate relationships with people We appreciate genuine, meaningful values We create beauty, we create wellness [Our Values] In Diversity, Strength In Challenge, Growth In Heritage, Excellence

12

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

[Our Way] Toward Consumers Toward Business Partners Toward Shareholders Toward Employees Toward Society and the Earth

(2) Medium- and Long-Term Management Strategies and Numerical Management Targets The Shiseido Group is implementing its three-year business plan (covering the period from April 2011 to March 2014), designed to help the Group enter a growth trajectory. Guided by the plan, the Group seeks to become a “global player representing Asia with its origins in Japan.” Under the plan, we are promoting four growth strategies: “Global Mega Brand Strategy,” “Asia Breakthrough Strategy,” “New Frontier Strategy,” and “Customer First Strategy.” The top priority of this initiative is to energize our Domestic Cosmetics business segment and accelerate the globalization of our operations. By promoting the aforementioned growth strategies, we are targeting annual average growth of 6% or more for net sales over the three-year period of the plan and achievement of a 10% operating margin during the three-year period. However, economic conditions have changed since the plan was formulated. For this reason, it will be difficult to achieve the operating margin target during the three-year period of the plan. At present, therefore, our projection is to reach 8%.

(3) Issues to Address 1. Three-Year Plan The Shiseido Group is pursuing targets of net sales in excess of ¥1 trillion (over 50% overseas sales), an operating margin of 12% or higher, and consolidated ROE of 15% or higher by the year ending March 2018. By achieving these targets, the Group seeks to become a “global player representing Asia with its origins in Japan.” Under our three-year plan, which started in the year under review, we are pursuing the following three visions: “Rebirth as a 100% Customer-Oriented Company,” “Brighten Our Brand, a Valuable Management Resource,” and “Fill the Shiseido Organization with People with Their Own Appeal.” These visions are designed the guide Group along its desired medium- and long-term future path based on our newly formulated corporate philosophy—“Our Mission, Values and Way.” To realize these visions and achieve our aspirations, we are pursuing four growth strategies: “Global Mega Brand Strategy,” “Asian Breakthrough Strategy,” “New Frontier Strategy,” and “Customer-First Strategy.” We have positioned the period ending March 2013 as a “year for growth realization,” during which we will continue pursuing the aforementioned growth strategies. Global Mega-Brand Strategy Shiseido aims to become a “Global Multiple Brands Company” possessing multiple brands that achieve sales of between ¥50 billion and ¥100 billion and are competitive with other major companies. Up until now, we have enhanced the unique brand values and increased the presence of globally developed brands that originate from Japan, Europe, and North America. Under the three-year plan, by looking at markets that transcend regional boundaries we have selected six brands that we will focus on developing as “global mega brands.” These consist of three prestige brands (global brand SHISEIDO, clé de Peau Beauté, and Bare Escentuals) and three masstige brands (Za, Senka, and TSUBAKI). Asian Breakthrough Strategy Shiseido aims to expand its overall share in Asian markets, which are expected to become the world’s largest in the near future, by designating Asia as its most important area. To this end, we will proactively engage in efforts to achieve growth and share expansion in China, which is the largest growth market, while 13

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

also strengthening initiatives in East Asian countries and Southeast Asian nations. Additionally, in the domestic market we will seek to create value and enhance the activities of our salespeople and beauty consultants, placing top priority on growth recovery. New Frontier Strategy In order to swiftly address the rapidly changing consumer and distribution environments, we will introduce a new business model aimed at creating touchpoints with customers. In addition, we will step up Internet sales efforts in North America and China. We will also accelerate the rate of growth by strengthening expansion into rapidly growing areas, centering on emerging countries. Customer-First Strategy This strategy forms the cornerstone of the three-year plan, because it affects all corporate activities. The term “customer first” has two meanings. One means implementing activities that put customers above everything else in all initiatives, and the other means becoming No. 1 in terms of customer support worldwide through ongoing improvements in the quality of customer responses. We will build a framework conducive to sharing information—such as past successes in various business locations and opinions received from customers—laterally across segment and geographical lines. In the process, we will accelerate improvements in product creation and the quality of our store-level responses.

(2) Initiatives for Year Ending March 2013 Domestic Cosmetics Business New business model In Japan, we will introduce a new business model designed to generate synergies between the Internet and brick-and-mortar retail stores. In April 2012, we launched Beauty & Co., a collaboration website for companies involved in beauty and health, as well as watashi+ (pronounced “watashi plus”), a next-generation beauty solution service linking stores with the Internet. Under Beauty & Co., we will seek to create new interfaces between participating companies and customers and promote collaboration between companies in different business fields, with the aim of creating added value and delivering new products and services to customers. With respect to watashi+, we will provide online counseling services, introduction and search services for brick-and-mortar stores, and “makeup simulation” (Internet-based service enabling customers to enjoy a more varied makeup experience), in order to provide each and every customer with optimal beauty-related solutions derived from abundant content devoted to beauty. It will also incorporate an online sales service. Refining product creation, sales, and response activities We will continue working to improve product value and refine our customer consulting activities, while promoting season-specific proposal activities and strengthening efforts to foster existing products, centering on mainstay products. We will also increase the pace of growth by concentrating investments on specific brands, including the global mega brand clé de Peau Beauté, the global brand SHISEIDO, Senka, and TSUBAKI. In addition, we will target reforms across all facets of our corporate activities aimed at generating added value for customers—from R&D and production to marketing, advertising, sales, and store-level responses. By creating new levels of value built on proven technological prowess, we will strengthen and improve information transmission and store-level responses, and convey such value to customers in an easy-to-understand manner.

14

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

Global Business Prestige market Regarding the global brand SHISEIDO, we will strive to attract new customers to the mainstay SHISEIDO BOP (Bio-Performance) skincare line, especially Corrective Serum. At the same time, we will use the SHISEIDO Future Solution LX premium skincare line raise the prestige image of the global brand SHISEIDO. With respect to clé de Peau Beauté, we will target renewed overseas growth by further refining brand value, expanding our presence in North America, and increasing the number of stores handling our products in China. As for Bare Mineral, we will maximize synergies by deploying Shiseido’s technological and sales capabilities. In addition, we will strengthen our makeup lines centered on North America, reinforce communications, and expand categories to include skincare incorporating Shiseido technologies. We will also target growth in Europe, as well as Japan and Hong Kong where we have deployed Shiseido’s sales expertise to date, while actively entering new markets, such as Brazil. Masstige market With respect to Senka, we will utilize knowhow amassed in Japan and Taiwan to increase the number of countries slated for business development. Regarding TSUBAKI, we have started local production in China and are stepping up our rollout of this brand. As for Za, we are targeting further sales growth through advertising that showcases the brand’s concept and by renewing our store presence. Designer fragrances and makeup artist brand We will continue fostering the ISSEY MIYAKE line of designer fragrances made by Beauté Prestige International, while increasing the number of countries slated for rollout of the narciso rodriguez line, with the aim of broadening our profile in the fragrance market. In addition, we will target further sales growth for the NARS makeup artist brand, including by increasing the number of countries slated for rollout. China In China, where competition is becoming more and more intense, we will allocate business resources as a top priority, in an effort to achieve sales growth that surpasses the market expansion rate. In the department store channel, we will introduce a premium range under the Aupres brand in top-selling stores in order to raise the brand’s overall premium image. At the same time, we will foster the global brand SHISEIDO by strengthening the capabilities of our beauty consultants. In the cosmetics specialty store channel, we will continue reinforcing the URARA and Pure & Mild. brands while deepening relationships with retail customers in order to maintain steady growth. In other areas, as well, we will promote brands and products in the professional and healthcare fields, and we will work in other ways reinforce our market advantage by harnessing the comprehensive strengths of the Shiseido Group. Newly emerging nations Targeting next-generation growth engines to follow China, we will continue strengthening our response to emerging nations, centering on Russia, Brazil, and India. In Russia, we will leverage our business foundation—which we have used to aggressive tap new customer stores—to steadily foster the global brand SHISEIDO. At the same time, we will step up promotion of the TSUBAKI brand, introduced in the year under review. In Brazil, we will launch the Bare Mineral and NARS brands and start a full-scale multiple-brand rollout, with the aim of transforming Brazil into to a core market. In India, where we have a representative office, we will consider business plans under a project system.

15

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

Strengthening Our Business Foundation to Achieve Sustained Growth Enhancing production and procurement systems With respect to production, we will optimize our supply chain on a global level while seeking to realize low-cost operations. We will also work exhaustively on a global level to lower costs of our procurement system. Establishing IT infrastructure In an effort to standardize business processes and raise the speed of decision-making, we will introduce SAP—a core IT system already in place in Japan, Europe, China, and elsewhere—into other regions. In this way, we will enable visualization of overall business indicators. Globalizing human resources In Japan, we will continue fostering global human resources who are responsive to different cultures and have a good understanding of global business. At the same time, we will nurture personnel on a region-specific basis. Targeting executives, we will also expedite efforts to foster and utilize human resources on a global basis. Deepening CSR activities We will pursue initiatives and study responses aimed at minimizing risks associated with our business activities and maximizing corporate value. Here, we will place emphasis on human rights and the environment, recognized as the most important international issues of our time. Seeking to approach our overall business activities from a CSR-based perspective, we will continue promoting CSR-driven management in order to identify risks inherent in our domestic and overseas operations. This initiative will cover the entire supply chain, including both the Shiseido Group and its business partners. With respect to the environment, we will continue to place environmental initiatives at the core of Shiseido’s management. We will continue strengthening environmental responses throughout the total life cycle and stepping up initiatives centering on reducing carbon dioxide emissions worldwide. Specifically, we will promote use of environmentally friendly materials in our products and raise such usage to a level enabling us to propose new values in terms of environmental responsiveness. In addition, we will introduce environmentally friendly equipment and pursue energy-saving activities in factories and offices, both in Japan and overseas, in order to reduce carbon dioxide emissions.

16

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

4. Consolidated Financial Statements (1) Consolidated Balance Sheets Fiscal Year Ended March 2011

ASSETS Current Assets: Cash and Time Deposits Notes and Accounts Receivable Short-Term Investments in Securities Inventories Deferred Tax Assets Other Current Assets Less: Allowance for Doubtful Accounts Total Current Assets Fixed Assets: Property, Plant and Equipment: Buildings and Structures Less: Accumulated Depreciation Buildings and Structures (net of depreciation) Machinery, Equipment and Vehicles Less: Accumulated Depreciation Machinery, Equipment and Vehicles (net of depreciation) Fixtures and Fittings Less: Accumulated Depreciation Fixtures and Fittings (net of depreciation) Land Leased Assets Less: Accumulated Depreciation Leased Assets (net) Construction in Progress Total Property, Plant and Equipment Intangible Assets: Goodwill Lease Assets Trademarks Other Intangible Assets Total Intangible Assets Investments and Other Assets: Investments in Securities Prepaid Pension Expenses Long-Term Prepaid Expenses Deferred Tax Assets Other Investments Less: Allowance for Doubtful Accounts Total Investments and Other Assets Total Fixed Assets Total Assets

17

(Millions of yen) Fiscal Year Ended March 2012

90,006 103,002 15,051 65,850 27,318 12,924 (938) 313,215

67,121 112,874 26,716 71,902 19,860 17,689 (935) 315,229

160,045 (98,605) 61,439 82,166 (71,084) 11,082 54,677 (36,825) 17,852 33,490 9,817 (5,285) 4,532 2,823 131,221

158,246 (98,806) 59,439 81,581 (69,791) 11,789 56,916 (38,045) 18,871 33,091 8,706 (5,033) 3,673 2,931 129,796

94,122 348 42,628 48,955 186,054

84,539 613 40,583 47,907 173,644

27,515 24,560 9,743 19,577 27,366 (133) 108,628

27,396 20,948 9,658 18,084 26,026 (77) 102,037

425,904 739,120

405,478 720,707

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(Millions of yen) Fiscal Year Ended March 2011

LIABILITIES Current Liabilities: Notes and Accounts Payable Short-Term Debt Current Portion of Long-Term Borrowings Lease Obligations Other Payable Accrued Income Taxes Reserve for Sales Returns Accrued Bonuses for Employees Accrued Bonuses for Directors Provision for Liabilities and Charges Reserve for Disaster Deferred Tax Liabilities Other Current Liabilities Total Current Liabilities Long-Term Liabilities: Bonds Long-Term Debt Lease Obligations Accrued Retirement Benefits Allowance for Loss on Guaranties Allowance for Environmental Measures Deferred Tax Liabilities Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities NET ASSETS Shareholders’ Equity: Common Stock Capital Surplus Retained Earnings Less: Treasury Stock Total Shareholders’ Equity Valuation and Translation Adjustments Unrealized Gains on Available-for-Sale Securities, Net of Taxes Foreign Currency Translation Adjustments Total Valuation and Translation Adjustments Stock Acquisition Rights Minority Interests in Consolidated Subsidiaries Total Net Assets Total Liabilities and Net Assets

18

Fiscal Year Ended March 2012

43,771 5,595 8,509 2,256 37,980 12,214 11,447 11,549 373 764 922 25 24,263 159,676

48,305 1,989 5,915 1,830 44,273 8,025 11,065 15,030 395 565 — 20 27,302 164,719

90,000 88,337 2,818 41,285 350 495 29,165 6,864 259,316

90,000 82,836 2,581 42,089 350 486 27,622 6,306 252,273

418,993

416,992

64,506 70,258 231,336 (3,874) 362,226

64,506 70,263 225,598 (3,778) 356,590

83 (55,040) (54,956) 590 12,267 320,127 739,120

605 (66,702) (66,096) 668 12,553 303,715 720,707

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(2) Consolidated Statements of Income Fiscal Year Ended March 2011

Net Sales Cost of Sales Gross Profit Selling, General and Administrative Expenses Operating Income Other Income Interest Income Dividend Income Equity in Earnings of Affiliates Rental Income Subsidy Income Others Total Other Income Other Expenses Interest Expense Equity in Losses of Affiliates Foreign Exchange Loss Other Total Other Expenses Ordinary Income Extraordinary Income Gain on Sales of Property, Plant and Equipment Gain on Sales of Investments in Securities Total Extraordinary Income Extraordinary Losses Impairment Loss Loss on Disposal of Property, Plant and Equipment Loss on Sales of Investments in Securities Loss on Revaluation of Investments in Securities Loss on Adjustment for Changes of Accounting Standards for Asset Retirement Obligations Purchasing-Related Expense Loss on adjustment for changes of estimate for samples and promotional items Loss on Disaster Total Extraordinary Losses Income before Income Taxes Income Taxes – Current Income Tax –Deferred Total Income Taxes Income before Minority Interests Minority Interests in Earnings of Consolidated Subsidiaries Net Income

19

(Millions of yen) Fiscal Year Ended March 2012

670,701 168,692 502,008 457,550 44,458

682,385 162,989 519,395 480,260 39,135

669 730 33 932 461 1,306 4,133

723 800 — 874 530 1,182 4,110

2,165 — 589 1,354 4,110

1,824 122 604 1,252 3,802

44,480

39,442

1,003 177 1,180

1,332 26 1,358

457 1,612 198 4,199

96 1,422 258 76

844

—

1,232

—

6,751

—

1,668 16,966 28,695 18,614 (5,286) 13,328 15,367 2,576 12,790

— 1,854 38,947 13,953 7,935 21,888 17,058 2,543 14,515

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(Consolidated Statements of Comprehensive Income) Fiscal Year Ended March 2011

Income before Minority Interests Other Comprehensive Income Valuation Difference on Available-for-Sale Securities Foreign Currency Translation Adjustment Share of Other Comprehensive Income of Associates Accounted for Using Equity Method Other Comprehensive Income Comprehensive Income Comprehensive Income Attributable to Owners of the Parent Comprehensive Income Attributable to Minority Interests

20

(Millions of yen) Fiscal Year Ended March 2012

15,367

17,058

(1,003) (32,564)

561 (12,144)

(59)

(18)

(33,627) (18,260) (19,833) 1,572

(11,601) 5,456 3,375 2,081

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(3) Consolidated Statements of Changes in Shareholders’ Equity (Millions of yen)

Shareholders’ Equity Common Stock Balance at End of Previous Term Balance at End of Term in Review Capital Surplus Balance at End of Previous Term Changes during Term in Review Disposal of Treasury Stock Total Changes during Term in Review Balance at End of Term in Review Retained Earnings Balance at End of Previous Term Cumulative Effect of Changes in Accounting Methods Balance at End of Previous Term after Retrospective Treatment Changes during Term in Review Distribution of Retained Earnings Net Income Disposal of Treasury Stock Retirement of Treasury Stock Change in Consolidation Scope Noncontrolling Interests, Capital Transactions, Others Total Changes during Term in Review Balance at End of Term in Review Treasury Stock Balance at End of Previous Term Changes during Term in Review Purchase of Treasury Stock Disposal of Treasury Stock Retirement of Treasury Stock Total Changes during Term in Review Balance at End of Term in Review Total Shareholders’ Equity Balance at End of Previous Term Cumulative Effect of Changes in Accounting Methods Balance at End of Previous Term after Retrospective Treatment Changes during Term in Review Dividends from Surplus Net Income Acquisition Treasury Stock Disposal of Treasury Stock Change in Consolidation Scope Noncontrolling Interests, Capital Transactions, Others Total Changes during Term in Review Balance at End of Term in Review

21

Fiscal Year Ended March 2011

Fiscal Year Ended March 2012

64,506 64,506

64,506 64,506

70,258

70,258

— — 70,258

5 5 70,263

259,063 (1,064) 257,999

231,336 — 231,336

(19,890) 12,790 (149) (18,879) — (534) (26,663) 231,336

(19,898) 14,515 0 — (35) (318) (5,737) 225,598

(23,111)

(3,874)

(13) 371 18,879 19,236 (3,874)

(2) 98 — 96 (3,778)

370,717 (1,064) 369,652

362,226 — 362,226

(19,890) 12,790 (13) 221 — (534) (7,426) 362,226

(19,898) 14,515 (2) 104 (35) (318) (5,635) 356,590

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(Millions of yen)

Valuation and Translation Adjustments Net Unrealized Gains or Losses on Securities Balance at End of Previous Term Changes during Term in Review Changes during Term Not Related to Shareholders’ Equity (Net) Total Changes during Term in Review Balance at End of Term in Review Translation Adjustments Balance at End of Previous Term Changes during Term in Review Changes during Term Not Related to Shareholders’ Equity (Net) Total Changes during Term in Review Balance at End of Term in Review Total Valuation and Translation Adjustments Balance at End of Previous Term Changes during Term in Review Changes during Term Not Related to Shareholders’ Equity (Net) Total Changes during Term in Review Balance at End of Term in Review Stock Acquisition Rights Balance at End of Previous Term Changes during Term in Review Changes during Term Not Related to Shareholders’ Equity (Net) Total Changes during Term in Review Balance at End of Term in Review Minority Interests Balance at End of Previous Term Changes during Term in Review Changes during Term Not Related to Shareholders’ Equity (Net) Total Changes during Term in Review Balance at End of Term in Review Total Net Assets Balance at End of Previous Term Cumulative Effect of Changes in Accounting Methods Balance at End of Previous Term after Retrospective Treatment Changes during Term in Review Dividends from Surplus Net Income Acquisition of Treasury Stock Disposal of Treasury Stock Change in Consolidation Scope Noncontrolling Interests, Capital Transactions, Others Changes during Term Not Related to Shareholders’ Equity (Net) Total Changes during Term in Review Balance at End of Term in Review

22

Fiscal Year Ended March 2011

Fiscal Year Ended March 2012

1,054

83

(970) (970) 83

521 521 605

(23,447)

(55,040)

(31,593) (31,593) (55,040)

(11,661) (11,661) (66,702)

(22,393)

(54,956)

(32,563) (32,563) (54,956)

(11,139) (11,139) (66,096)

430

590

160 160 590

77 77 668

16,453

12,267

(4,186) (4,186) 12,267

286 286 12,553

365,207 (1,064) 364,143

320,127 — 320,127

(19,890) 12,790 (13) 221 — (534) (36,589) (44,016) 320,127

(19,898) 14,515 (2) 104 (35) (318) (10,775) (16,411) 303,715

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(4) Consolidated Statements of Cash Flows

Cash Flows from Operating Activities Income before Income Taxes Depreciation Amortization of Goodwill Impairment Loss (Gain) Loss on Disposal of Property, Plant and Equipment (Gain) Loss on Sales of Investments in Securities Loss on Valuation of Investments in Securities Effect of Application of Accounting Standards for Asset Retirement Obligations Purchasing-Related Expense Loss on adjustment for changes of estimate for samples and promotional items Loss on Disaster Increase (Decrease) in Allowance for Doubtful Accounts Increase (Decrease) in Reserve for Sales Returns Increase (Decrease) in Accrued Bonuses for Employees Increase (Decrease) in Accrued Bonuses for Directors Increase (Decrease) in Provision for Liabilities and Charges Increase (Decrease) in Accrued Retirement Benefits (Increase) Decrease in Allowance for Environmental Measures (Increase) Decrease in Prepaid Pension Expenses Interest and Dividends Received Interest Expense Equity in (Earnings) Losses of Affiliates (Increase) Decrease in Notes and Accounts Receivable (Increase) Decrease in Inventories Increase (Decrease) in Notes and Accounts Payable Others Subtotal Interest and Dividends Received Interest Paid Income Tax Paid Net Cash Provided by Operating Activities

23

Fiscal Year Ended March 2011

(Millions of yen) Fiscal Year Ended March 2012

(April 1, 2010– March 31, 2011)

(April 1, 2011– March 31, 2012)

28,695 29,510 5,204 457 609 21 4,199

38,947 30,682 5,519 96 90 232 76

844

—

1,232

—

6,751

—

1,668 (52) (5) 454 55 (79) 1,517 (3) 4,179 (1,399) 2,165 (33) 3,323 728 (6,135) 1,206 85,119 1,430 (2,060) (16,903) 67,586

(922) (10) (183) 3,705 22 (140) 1,004 (8) 3,611 (1,523) 1,824 122 (12,716) (8,102) 9,627 2,581 74,537 1,471 (1,927) (21,480) 52,599

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

Cash Flows from Investing Activities Transfers to Time Deposits Proceeds from Maturity of Time Deposits Acquisition of Short-Term Investments in Securities Proceeds from Sales of Short-term Investments in Securities Acquisition of Investments in Securities Proceeds from Sales of Investments in Securities Acquisition of Shares in Subsidiaries Resulting in Change in Consolidation Scope Acquisition of Shares in Subsidiaries Acquisition of Property, Plant and Equipment Proceeds from Sales of Property, Plant and Equipment Acquisition of Intangible Assets Payments of Long-Term Prepaid Expenses Other Net cash Used in Investing Activities Cash Flows from Financing Activities Net Increase (Decrease) in Short-Term Debt Proceeds from Long-Term Debt Repayment of Long-Term Debt Proceeds from Bond Issuance Repayment of Lease Obligations Acquisition of Treasury Stock Sales of Treasury Stock Cash Dividends Paid Cash Dividends Paid to Minority Shareholders Net Cash Used in Financial Activities Effect of Exchange Rate Changes on Cash and Cash Equivalents· Net Change in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Term Change in Cash and Cash Equivalents Due to Change in Scope of Consolidation Cash and Cash Equivalents at End of Term

24

Fiscal Year Ended March 2011

(Millions of yen) Fiscal Year Ended March 2012

(April 1, 2010– March 31, 2011)

(April 1, 2011– March 31, 2012)

(28,065) 27,821 (1,191) 941 (29) 1,352 (752)

(16,690) 21,751 (314) 576 (220) 603 —

(5,723) (17,701) 987 (4,578) (4,053) 689 (30,303)

— (17,719) 1,677 (7,016) (4,499) 1,184 (20,668)

(99,817) 60,021 (12,861) 40,000 (2,838) (13) 221 (19,878) (4,405) (39,571) (6,935) (9,224) 77,157

(3,431) 649 (8,365) — (2,602) (2) 104 (19,890) (1,943) (35,482) (2,067) (5,618) 88,592

20,659

—

88,592

82,974

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(5) Note on Assumptions for Going Concern Not applicable

(6) Basis of Presenting Consolidated Financial Statements Scope of Consolidation (1) Number of consolidated subsidiaries: 94 Principal subsidiaries are listed in the Group’s most recent Financial Report (submitted June 24, 2011). Since there are no major changes, the list is omitted from this report. Please refer to the following website for the list of principal subsidiaries. http://group.shiseido.co.jp/ir/library/syoken/pdf/2010/1103all.pdf [Additions: 1 company] One company— Shiseido Professional Korea Co., Ltd. —was established during the period and thus has been included in the scope of consolidation in the year under review. [Exclusions: 2 companies] Two companies—Shiseido Business Solutions Co., Ltd., which was liquidated, and P.T. Prana Dewata Ubud, the shares of which were sold by the Company—were excluded from the scope of consolidation in the year under review. (2) Nonconsolidated subsidiaries Major Company Name: Beauté Prestige International Ltd. (UK) (Reasons for excluding nonconsolidated subsidiaries from scope of consolidation) Since these companies are small in scale or do not engage in full-scale operations, their combined assets, net sales, net income (the Company’s interest share) and retained earnings (the Company’s interest share) have a minimal effect on the Company’s consolidated financial statements, and they are insignificant in general, they are not included in the scope of consolidation.

(7) Changes in Accounting Policies (Change in accounting treatment for product samples and promotional materials) Previously, the Company’s subsidiaries in the Americas treated product samples and promotional materials used in retail store sales activities as assets at the time of acquisition and expenses at the time of shipment to customers. i.e., retail stores. Effective the first quarter of the fiscal year in review, however, such items are now treated as expenses at the time of acquisition, in the interests of consistency in internal Group accounting treatment. Compared with the accounting policy prior to retrospective application, inventories and retained earnings (stated in the Consolidated Balance Sheets) in the previous fiscal year declined ¥1,724 million and ¥1,064 million, respectively, while deferred tax assets (stated under Current Assets) increased ¥660 million. Reflecting the cumulative impact on net assets at the beginning of the previous fiscal year, retained earnings for that year declined ¥1,064 million as a result of the change in accounting policy. The change in policy is not reflected in the Consolidated Statements of Income or Consolidated Statements of Comprehensive Income for the previous fiscal year, because the balances of product samples and promotional materials included within inventories have remained mostly unchanged and the differences in term-end balances are not deemed significant. The effect of the change on per-share data is stated in the relevant location.

25

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(Change in method of calculating fully diluted net income per share) Effective the fiscal year under review, the Company has applied “Accounting Standards for Earnings Per Share” (ASBJ Statement No. 2, June 30, 2010) and “Guidance on Accounting Standard for Earnings Per Share” (ASBJ Guidance No. 4, June 30, 2010). In calculating diluted earnings per share, for stock options in which the right to exercise options is vested after a specified service period, the fair value of service expected to be provided to the Group in the future is added to the proceeds assumed to be received when options are exercised. Adoption of the aforementioned accounting standards would have had a minimal effect on fully diluted net income per share in the previous fiscal year, so it has not been applied retrospectively.

(8) Supplementary Information (Application of accounting standard for accounting changes and error corrections) After the beginning of the fiscal year under review, the Company made accounting changes and/or corrections of past errors. For this reason, it has applied Accounting Standard for Accounting Changes and Error Corrections (ASBJ Statement No. 24, December 4, 2009) and Guidance on Accounting Standard for Accounting Changes and Error Corrections (ASBJ Guidance No. 24, December 4, 2009). (Revision of statutory tax rate) Following the promulgation on December 2, 2012 of “Act for Partial Revision of the Income Tax Act, etc. for the Purpose of Creating Taxation System Responding to Changing in Economic and Social Structure” (Act No. 114 of 2011) and “Act on Special Measures for Securing Financial Resources Necessary to Implement Measures for Reconstruction Following the Great East Japan Earthquake” (Act No. 117 of 2011), the corporate tax rate will be changed and the Special Reconstruction Corporation Tax will be imposed for the fiscal year beginning on or after April 1, 2012. In line with these changes, the effective statutory tax rate used to measure deferred tax assets and liabilities related to temporary differences expected to be eliminated during the fiscal years beginning on or after April 1, 2012 will be changed from 41% to 38%. Also, the effective statutory tax rate used to measure deferred tax assets and liabilities related to temporary differences expected to be eliminated during the fiscal years beginning on or after April 1, 2015 will be changed from 41% to 36%. As a result, net deferred tax assets (after deducting deferred tax liabilities) at the end of the fiscal year under review declined ¥2,743 million, while deferred income taxes and unrealized gains on available-for- sale securities, net of taxes, increased ¥2,782 million and ¥39 million, respectively. Apart from the items described above, there are no significant changes to items outlined in the Company’s most recent Financial Report (filed on June 24, 2011). Accordingly, such items have been omitted from this document.

(9) Notes Concerning Consolidated Financial Statements [Segment Information] 1. Overview of Reportable Segments With respect to its reportable segments, the Company is able to obtain delineated financial data from among its structural units. Accordingly, its segments are subject to regular examination in order to assist decision-making on allocation of managerial resources and evaluation of business performance by the Board of Directors. The Company’s main business is the production and sale of cosmetics. Under a business structure classified according to domestic and global regions, various business departments in the head office formulate comprehensive strategies and promote business activities. Consequently, the Company has classified its operations into two segments along geographical lines: Domestic Cosmetics Business and Global Business. 26

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

The Domestic Cosmetics Business segment includes the domestic cosmetics business (production and sale of cosmetics, cosmetic accessories, and toiletries), the healthcare business (production and sale of health & beauty foods and over-the-counter drugs), and the production and sale of non-Shiseido-brand products and mail-order products. The Global Business segment covers the overseas cosmetics business (production and sale of cosmetics, cosmetic accessories, and toiletries) and the domestic and overseas professional business (production and sale of beauty salon products).

2. Method of Computing Sales, Income/Loss, Assets, Liabilities, and Other Items by Reportable Segment The accounting treatment method for the Group’s reported business segments is generally the same as described in the Company’s most recent Financial Report (filed on June 24, 2011) and “(6) Basis of Presenting Consolidated Financial Statements.” Also, segment income is based on operating income. The prices of inter-segment transactions and transfers are determined by price negotiations based on the Company’s submission of preferred prices after taking market conditions into account.

3. Business Segment Information Fiscal Year Ended March 2011 (April 1, 2010–March 31, 2011) (Millions of yen) Domestic Cosmetics Business

Net Sales Sales to Outside Customers Intersegment Sales or Transfers Total Segment Income Segment Assets Other Items Depreciation and Amortization Amortization of Goodwill Increase in Tangible and Intangible Fixed Assets

Global Business

Others

Subtotal

Adjustment

— (10,736) (10,736) 20 55,812

Total

358,408 1,828 360,236 33,573 212,505

302,632 2,479 305,112 9,025 423,363

9,660 6,428 16,088 1,838 47,438

670,701 10,736 681,438 44,437 683,307

670,701 — 670,701 44,458 739,120

15,351 141

12,918 5,062

1,204 —

29,474 5,204

36 —

29,510 5,204

11,175

15,686

349

27,210

—

27,210

Notes: 1. “Other” includes businesses not included in the reporting segments. These include the frontier sciences business (production and sale of cosmetic raw materials, medical-use drugs, medical cosmetics, etc.) and the restaurant business. 2. Below is a description of adjustments. (1) The “Segment Income” adjustment refers to inter-segment transaction eliminations amounting to ¥20 million. (2) The “Segment Assets” adjustment includes inter-segment eliminations amounting to –¥2,616 million and companywide assets (not allocated to specific segments) totaling ¥58,429 million. Companywide assets consist mainly of assets not belonging to specific segments (cash and time deposits, short-term investments in securities, investments in securities, etc.) and assets related to administrative operations. (3) The “Depreciation and Amortization” adjustment refers to depreciation expenses related to companywide assets and intersegment eliminations. Long-term prepaid expenses are included in “Depreciation and Amortization” and “Increase in Tangible and Intangible Fixed Assets.” 3. Segment income is adjusted for Operating Income described in Consolidated Quarterly Statements of Income.

27

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

Fiscal Year Ended March 2012 (April 1, 2011–March 31, 2012) (Millions of yen) Domestic Cosmetics Business

Net Sales Sales to Outside Customers Intersegment Sales or Transfers Total Segment Income Segment Assets Other Items Depreciation and Amortization Amortization of Goodwill Increase in Tangible and Intangible Fixed Assets

Global Business

Others

Subtotal

Adjustment

— (9,425) (9,425) 82 58,323

Total

353,789 2,049 355,838 29,459 210,319

319,678 2,290 321,969 8,212 406,674

8,917 5,085 14,003 1,381 45,391

682,385 9,425 691,810 39,052 662,384

682,385 — 682,385 39,135 720,707

15,183 141

14,382 5,377

1,079 —

30,645 5,519

36 —

30,682 5,519

17,457

16,486

357

34,301

—

34,301

Notes: 1. “Other” includes businesses not included in the reporting segments. These include the frontier sciences business (production and sale of cosmetic raw materials, medical-use drugs, medical cosmetics, etc.) and the restaurant business. 2. Below is a description of adjustments. (1) The “Segment Income” adjustment refers to inter-segment transaction eliminations amounting to ¥82 million. (2) The “Segment Assets” adjustment includes inter-segment eliminations amounting to –¥2,564 million and companywide assets (not allocated to specific segments) totaling ¥60,888 million. Companywide assets consist mainly of assets not belonging to specific segments (cash and time deposits, short-term investments in securities, investments in securities, etc.) and assets related to administrative operations. (3) The “Depreciation and Amortization” adjustment refers to depreciation expenses related to companywide assets and intersegment eliminations. Long-term prepaid expenses are included in “Depreciation and Amortization” and “Increase in Tangible and Intangible Fixed Assets.” 3. Segment income is adjusted for Operating Income described in Consolidated Quarterly Statements of Income. 4. Previously, the Company’s subsidiaries in the Americas treated product samples and promotional materials used in retail store sales activities as assets at the time of acquisition and expenses at the time of shipment to customers, i.e, retail stores. Effective the fiscal year in review, however, such items are now treated as expenses at the time of acquisition, in the interests of consistency in internal Group accounting treatment. The change in policy has been applied retrospectively to the Consolidated Financial Statements for the previous fiscal year. Compared with the previous accounting method, assets of the Global Business segment in the previous fiscal year declined ¥1,064 million.

28

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(Per-Share Data) (Yen)

Fiscal Year Ended March 2011

Fiscal Year Ended March 2012

(April 1, 2010–March 31, 2011)

(April 1, 2011–March 31, 2012)

Net assets per share Net income per share Net income per share (fully diluted)

772.14 32.15 32.10

Net assets per share Net income per share Net income per share (fully diluted)

729.89 36.47 36.44

Note: Basis for calculation: 1. The basis for calculating net assets per share is shown below.

Total net assets (¥ millions) Amount deducted from total net assets (¥ millions) [New share subscription rights (¥ millions)] [Minority interests (¥ millions)] Net assets at term-end related to common stock (¥ millions) Common stock at term-end used to calculate net assets per share (1,000 shares)

Fiscal Year Ended March 2011

Fiscal Year Ended March 2012

(April 1, 2010– March 31, 2011)

(April 1, 2011– March 31, 2012)

320,127 12,857 (590) (12,267) 307,269

303,715 13,221 (668) (12,553) 290,494

397,947

397,997

2. The basis for calculating net income per share and fully diluted net income per share is shown below.

Net income per share Net income (¥ millions) Amount not belonging to common stockholders (¥ millions) Net income (loss) related to common stock (¥ millions) Average shares outstanding (1,000 shares) Net income per share (fully diluted) Net income adjustment (¥ millions) Increase in common stock (1,000 shares) (Stock options made available through new share subscription rights) (1,000 shares) Latent shares not included in fully diluted net income per share calculation due to lack of dilution effect.

Fiscal Year Ended March 2011

Fiscal Year Ended March 2012

(April 1, 2010– March 31, 2011)

(April 1, 2011– March 31, 2012)

12,790

14,515

— 12,790 397,864

— 14,515 397,974

— 539

— 306

(539) (306) Stock options made Stock options made available through new available through new share subscription rights share subscription rights (300 new share (1,197 new share subscription rights): subscription rights): 300 thousand shares of 1,197 thousand shares of common stock common stock Notes: 1. Previously, the Company’s subsidiaries in the Americas treated product samples and promotional materials used in retail store sales activities as assets at the time of acquisition and expenses at the time of shipment to customers, i.e, retail stores. Effective the fiscal year in review, however, such items are now treated as expenses at the time of acquisition, in the interests of consistency in internal Group accounting treatment. The change in policy has been applied retrospectively to the Consolidated Financial Statements for the previous fiscal year. Compared with the previous accounting method, net assets per share in the previous fiscal year declined ¥2.67. 2. Effective the fiscal year in review, the Company has applied “Accounting Standards for Earnings Per Share” (ASBJ Statement No. 2, June 30, 2010) and “Guidance on Accounting Standard for Earnings Per Share” (ASBJ Guidance No. 4, June 30, 2010). Application of the aforementioned accounting standards would have had a minimal effect on fully diluted net income per share in the previous fiscal year, so it has not been applied retrospectively.

(Important Subsequent Event) Not applicable

29

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

5. Other Top Management Changes 1. Changes to representatives None

2. Changes to other directors (1) Directors (a) Changes to representative directors Title

Until March 31, 2012

Carsten Fischer

Director, Corporate Senior Executive Officer

Kimie Iwata

Representative Director, Executive Vice President

From April 1, 2012 Representative Director, Corporate Senior Executive Officer Director

(b) New candidate (scheduled for appointment at 112th Annual General Meeting in June 2012) Title Director

Name Yoshinori Nishimura

(c) Retiring (effective at the close of the 112th Annual General Meeting in June 2012) Title Director

Name Kimie Iwata

(2) Corporate Auditors (a) New candidates (scheduled for appointment at 112th Annual General Meeting in June 2012) Title Corporate Auditor (Part-time)

Name Eiko Tsujiyama

(b) Retiring (effective at the close of the 112th Annual General Meeting in June 2012) Title Corporate Auditor (Part-time)

Name Reiko Kuroda

30

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(3) Corporate Officers (a) Promotions (effective April 1, 2012) Title

Name

Corporate Executive Officer

Masaru Miyagawa

Corporate Executive Officer

Yu Okazawa

Main Responsibilities or Positions Responsible for Marketing of Domestic Cosmetics Business, Healthcare Business, and Domestic Non-Shiseido Brand Businesses Chairman, Shiseido China Co., Ltd. Chairman, Shiseido Liyuan Cosmetics Co., Ltd. Chairman, Shanghai Zotos Citic Cosmetics Co., Ltd. Responsible for Asian Breakthrough Strategy Chief Officer of China Business Division General Manager of Asia Pacific Sales Department

(b) New candidates (effective April 1, 2012) Title

Name

Corporate Officer

Kiyoshi Ishimoto

Corporate Officer

Chikako Sekine

Corporate Officer

Shigekazu Sugiyama

Main Responsibilities or Positions Responsible for Production, Purchasing, and Logistics Responsible for Beauty Creation General Manager of Beauty Consultation Planning Department Responsible for Corporate Culture and Advertising Creation

(c) Retired (effective March 31, 2012) Title

Name

Executive Vice President

Kimie Iwata

Corporate Officer

Shoji Nishiyama

Main Responsibilities or Positions Responsible for Corporate Culture, Advertising Creation, Beauty Solutions, General Affairs (Legal Affairs and Executive Affairs), and Committees under Direct Control of the Board of Directors Responsible for Functional Food Research & Development, Innovative Science Research & Development, Research Administration, and Technology Alliances

31

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(Reference) Top Management Structure at Close of 112th Annual General Meeting in June 2012 (plan) (1) Directors Title Representative Director, Chairman Representative Director, President & CEO

Name

Main Responsibilities or Positions

Shinzo Maeda

Chairman of the Board of Directors

Hisayuki Suekawa

CEO Director, Shiseido Beauty Academy

Representative Director, Corporate Senior Executive Officer

Carsten Fischer

Director, Corporate Executive Officer

Tatsuomi Takamori

Responsible for Global Business (International Business, China Business, and Professional Business) and the Americas Chief Officer of International Business Division Chairman and CEO, Shiseido Americas Corporation Chairman and CEO, Shiseido America Inc. Chairman, Zotos International, Inc. Responsible for Domestic Cosmetics Business, Business Strategies, and Clé de Peau Beauté Marketing Unit Chief Officer of Domestic Cosmetics Business Division

Director, Corporate Officer

Yoshinori Nishimura

Chief Financial Officer Responsible for Finance, Investor Relations, Information Systems Responsible for Planning and Internal Control

External Director (Independent)

Shoichiro Iwata

President & CEO, ASKUL Corporation

External Director (Independent)

Taeko Nagai

External Director (Independent)

Tatsuo Uemura

Vice President, Setagaya Arts Foundation External Director, Mitsui Chemicals, Inc. Chairman of International Theatre Institute Professor, School of Law, Waseda University Professor, Waseda Law School Management Committee Member and Audit Committee Member, Japan Broadcasting Corporation (NHK)

Notes: 1. Representative directors are scheduled to be decided at the Board of Directors meeting held following the 112th Annual General Meeting in June 2012. 2. Independent: Shoichiro Iwata, Taeko Nagai, and Tatsuo Uemura are designated as independent directors under Article 436-2 of Securities Regulations of the Tokyo Stock Exchange, and are expected to be reappointed as independent directors following their election at the Annual Meeting of Shareholders.

32

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(2) Corporate Auditors Title Corporate Auditor (Full-time)

Name Yasuko Takayama

Main Responsibilities or Positions — Auditor, Shiseido Beauty Academy Auditor, Shiseido Social Welfare Foundation External Director, Seiko Holdings Corporation External Corporate Auditor, Sumitomo Corporation External Director, Japan Post Holdings Corporation External Director, Enterprise Turnaround Initiative Corporation of Japan President, Tokyo Women’s Christian University President, International Civil and Commercial Law Centre Foundation

Corporate Auditor (Full-time)

Toshio Yoneyama

External Corporate Auditor (Independent; part-time)

Akio Harada

External Corporate Auditor (Independent; part-time)

Nobuo Otsuka

Chairman, Keiseikai Hospital Group

Eiko Tsujiyama

Professor, School of Commerce and the Graduate School of Commerce, Waseda University Dean of the Graduate School of Commerce, Waseda University External Corporate Auditor, Mitsubishi Corporation External Corporate Director, ORIX Corporation External Corporate Auditor, Lawson, Inc. External Corporate Auditor, NTT DoCoMo, Inc.

External Corporate Auditor (Independent; part-time)

Note: Independent: Akio Harada and Nobuo Otsuka are designated as independent directors under Article 436-2 of Securities Regulations of the Tokyo Stock Exchange. Eiko Tsujiyama is expected to be designated as an independent director following her election at the Annual Meeting of Shareholders.

33

Shiseido Co., Ltd. (4911) Fiscal Year Ended March 2012

(3) Corporate Officers Not Serving Concurrently as Directors Title

Name

Corporate Executive Officer

Masaru Miyagawa

Corporate Executive Officer

Yu Okazawa

Corporate Officer

Michiko Achilles

Corporate Officer

Kozo Hanada

Corporate Officer

Kiyoshi Ishimoto

Corporate Officer

Tsunehiko Iwai

Corporate Officer

Asa Kimura

Corporate Officer Corporate Officer

Shigeto Ohtsuki Tooru Sakai

Corporate Officer

Chikako Sekine

Corporate Officer

Youichi Shimatani

Corporate Officer

Shigekazu Sugiyama

Corporate Officer

Mitsuo Takashige

Corporate Officer

Ryuichi Yabuki

Main Responsibilities or Positions Responsible for Marketing of Domestic Cosmetics Business Division, Healthcare Business, and Domestic Non-Shiseido Brand Businesses Chairman, Shiseido China Co., Ltd. Chairman, Shiseido Liyuan Cosmetics Co., Ltd. Chairman, Shanghai Zotos Citic Cosmetics Co., Ltd. Responsible for Asian Breakthrough Strategy Chief Officer of China Business Division General Manager of Asia Pacific Sales Department Responsible for Public Relations, Consumer Information, Environmental Affairs, Corporate Culture Reforms, CSR, and Committees under Direct Control of the Board of Directors Chief Officer of Professional Business Operations Division President & CEO, Shiseido Professional Co., Ltd. Responsible for Production, Purchasing, and Logistics Responsible for Technical Planning, Quality Management and Frontier Science Business Responsible for Cosmetics Products R&D and Software Development General Manager of Personnel Department General Manager of Corporate Planning Department Responsible for Beauty Creation General Manager of Beauty Consultation Planning Department Responsible for Functional Food Research & Development, Innovative Science Research & Development, Research Administration, and Technology Alliances Responsible for Corporate Culture and Advertising Creation Responsible for Corporate Planning and General Affairs (Legal Affairs and Executive Affairs) Responsible for Sales of Domestic Cosmetics Business President & CEO, Shiseido Sales Co., Ltd. President and CEO, FT Shiseido Co., Ltd.

34