September 4, 2014

Norio TadakawaCorporate Officer, CFO

Shiseido Co., Ltd.

Diversity Management and Growth Strategy– Promoting Women’s Active Participation –

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.

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Content of Today’s Presentation

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Active Participation of Female Employees

Supporting Women’s Active Participation and Career Development

Overview of SHISEIDO

４ Diversity Management and Growth

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Overview of SHISEIDO

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Company Outline

Number of Employees

Company Name

Consolidated Net Sales

Foundation

Around 46,000

Shiseido Company, Limited

762 billion yen (year ended March 2014)

1872

Overseas Sales Ratio

50.5% (year ended March 2014)

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Position in Global Cosmetics Market

(Unit: Billion yen) 1,000 2,000 3,000

P&G

Estée Lauder

Unilever

L'Oréal

SHISEIDO

Avon

Beiersdorf

Kao (including Kanebo)

Johnson & Johnson

Chanel

World's top 10 cosmetics manufacturers by beauty sales* (2013)

5th in the world1st in Japan1st in Asia

* Does not include food and daily necessaries

Source: WWD BEAUTY INC’SANNUAL RANKING OFTHE WORLD’S BIGGESTBEAUTY COMPANIES(Released August 2014)

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Business Structure

Counseling Cosmetics

Domestic Cosmetics Business

Global Business

Self-selection

Toiletries Healthcare

Prestige segment

Masstige segment

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Global Brand

Sold in 89 countries and regions

ULTIMUNE Future Solution LX

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Research and Development Sites

9 R&D sites/1,000 Researchers

1 site in China 3 sites in Japan

2 sites in America2 sites in France

1 site in Thailand

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Production Sites

Southeast Asia

Europe America

China

3 plants in America

3 plants in China

4 plants in Japan1 plant in Taiwan

1 plant in Vietnam

Japan2 plants in France

14 production centers worldwide

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Corporate Philosophy: Our Mission, Values and Way

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Active Participation of Female Employees

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Active Participation of Female Employees at SHISEIDO

It is essential that female employees actively participate within the company and play a central role in business

activities and management.

90% of our customers and around 80% of our employees are women

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Active Participation of Female Employees: Research and Development

Research and development for new value creation

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Active Participation of Female Employees: Research and Development

Surveying & Researching customers worldwide

Cities and countries where we conducted surveys

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Active Participation of Female Employees: Manufacturing

Promotion of reliable and safe manufacturing

Sensory testStrict quality control

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Active Participation of Female Employees: Manufacturing

Sensory testing of cosmetics

by the professionals

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Active Participation of Female Employees: Marketing

Marketing to response customer’s needs

ELIXIR Brand ManagerNew ELIXIR

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Active Participation of Female Employees: Sales and Field Partners

Creation of customer-oriented selling spaces

Creating selling spaces by sales and field partners

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Active Participation of Female Employees: Beauty Consultants(BC)

Counseling the customer with the spirit of “Omotenashi”

1934: Debut of Miss Shiseido, the origin of SHISEIDO BCs

Now: Approximately 22,000 BCs active in 89 countries and regions

throughout the world

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Active Participation of Female Employees: Beauty Consultants

Continuous improvement of service

SHISEIDO Global BC ContestSHISEIDO BC OMOTENASHI CREDO

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Active Participation of Female Employees: Customer Care

High quality customer care

Shiseido’s Consumer Information Center’s customer service received the highest 3 Stars Quality Service rating in the quality monitoring (telephone) division of HDI-

Japan Fiscal 2013 Benchmarking Survey

A system for collecting and utilizing customer feedback

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Active Participation of Female Employees: CSR

Supporting women worldwide

Activities in Bangladesh Initiative to improve local cosmetics practices

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Active Participation of Female Employees: Management

Appointment of women to managerial positions

Ratio of females in managerial positions worldwide: 49.7%

DomesticRatio of females in managerial

positions: 26.8%

OverseasRatio of females in managerial

positions: 63.9%

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Supporting Women’s Active Participation and Career Development

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Supporting Women’s Active Participation and Career Development

Initiatives to support women’s active participation

1990 Introduction of maternity/paternity leave

1991 Introduction of childcare time

2003 Opening of Kangaroom in-house childcare facility

2006 Introduction of Kangaroo Staff program**Temporary workers take place of beauty consultants when they take child

care time

2008 Introduction of leave to accompany spouse when transferred

overseas, etc.

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Supporting Women’s Active Participation and Career Development

Initiatives to support women’s active participation

(Year)

(Persons)

Trend in number of users of childcare systems

SHISEIDO ranked top overall in Survey on Female Workers’

Workplace Opportunity conducted by Nikkei WOMAN magazine

Maternity/paternity leave

Childcare time

Childcare time (beauty consultant)

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Supporting Women’s Active Participation and Career DevelopmentEvolving from a company that supports women in balancing work and child-care to a company that enables women to advance their careers

女性リーダー比率は

子育て・介護等をしながらしっかりキャリアアップ

Women continue working while

raising children (possible to balance work and child-care)

Many women leave work when they have children(difficult to balance work and child-care)

Women advance their careers, while raising

children or nursing

Stage 1

Stage 2

Stage 3

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Diversity Management & Growth

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Diversity

New value created by diverse employees

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Diversity Management

Management decisions by diverse members

8 Directors 5 Corporate Auditors

13 members who attend Board meetings

2 Internal Directors with outside experience

3 Internal Directors

3 External Directors

2 Internal Corporate Auditors

3 External Corporate Auditors

8 members with outside experience

The Keys to Becoming a Global Marketing Company

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Value Creation Human Resources

Company’s Growth

The Keys to Becoming a Global Marketing Company

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Ownership

Leadership

The Keys to Becoming a Global Marketing Company

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Global Marketing Company

Evolution by diversity management

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おわりに

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一瞬も一生も美しく

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