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Results for Year Ended March 2012
Outlook for Year Ending March 2013
2012-4-27
Hisayuki Suekawa
President & CEO
SHISEIDO Co., Ltd.
SHISEIDO Co., Ltd.
In this document, statements other than historical facts are forward-looking
statements that reflect our plans and expectations. These forward-looking statementsinvolve risks, uncertainties and other factors that may cause actual results and
achievements to differ from those anticipated in these statements.
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FY2011 Results
(billions of yen)
2012/3
Results
YoY %Change
LocalCurrency
YoY Amount
Change fromthe value
announcedin January
Net Sales 682.4 +1.7% +4.7% +11.7 +2.4
Domestic 380.0 -0.8% -0.7% -2.9 -0.0Overseas 302.4 +5.1% +11.9% +14.6 +2.4
Operating Income 39.1 -12.0% -3.0% -5.3 -0.9Ordinary Income 39.4 -11.3% – -5.0 -0.6Net Income 14.5 +13.5% – +1.7 -2.5
Overseas Sales Ratio 44.3% (+1.4%)
Operating Margin 5.7% (-0.9%)
Exchange Rate 1 US$ = ¥79.8 (-9%) 1 Euro = ¥111.1 (-5%) 1 RMB = ¥12.4 (-5%)
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-1.3%-1.3%53.4%358.451.8%353.8DomesticCosmetics
+12.2%+5.6%45.1%302.646.9%319.7GlobalBusiness
-7.7%-7.7%1.5%9.71.3%8.9Others
+4.7%+1.7%100.0%670.7100.0%682.4Total
12/3 Results 11/3 ResultsYoY%
Change
LocalCurrency% of Net
Sales% of Net
Sales(billions of yen)
Sales by Reportable Segment
% of NetSales
358.4
37.4
14.5
306.5
41.9
82.0
182.7
11/3 Results
53.4%
5.6%
2.1%
45.7%
6.3%
12.2%
27.2%
-1.3%-4.651.8%353.8DomesticCosmetics
-7.9%-3.05.0%34.4Others
+2.8%+0.42.2%14.9Healthcare
-0.7%-2.144.6%304.5Cosmetics
+7.8%+3.36.6%45.1Toiletries
-5.0%-4.111.4%77.9Self-Selection
-0.7%-1.226.6%181.4Counseling
% of NetSales
YoY %
Change
YoYAmount
12/3 Results
Domestic Cosmetics Business Sales
(billions of yen)
*Starting current fiscal year sales of In & On line which had been included in “Healthcare” are included in “Counseling” and figures for prior fiscal year have been retroactivelyrestated.
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+5.6%
+1.5%
+6.3%
YoY%
Change% of Net
Sales
302.6
40.9
261.7
11/3 Results
45.1%
6.1%
39.0%
+12.2%+17.046.9%319.7GlobalBusiness
+6.9%+0.66.1%41.5Professional
+13.0%+16.440.8%278.2Cosmetics
% of Net
Sales
LocalCurrency
YoYAmount
12/3 Results
(billions of yen)
Global Business Sales
+11.7%+6.3%+7.718.2%122.119.0%129.7Asia/
Oceania
12/3 Results 11/3 ResultsYoY
Amount
YoY %
Change
LocalCurrency% of Net
Sales% of Net
Sales
Japan 380.0 55.7% 382.9 57.1% -2.9 -0.8% -0.7%
Americas 90.5 13.3% 87.6 13.1% +2.9 +3.3% +13.2%
Europe 82.2 12.0% 78.2 11.6% +4.0 +5.1% +10.7%
Overseas 302.4 44.3% 287.8 42.9% +14.6 +5.1% +11.9%
Total 682.4 100.0% 670.7 100.0% +11.7 +1.7% +4.7%
(billions of yen)
Sales by Geographic Segment
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Outlook for the Year Ending March 2013
+7.5
+4.1
+4.4
+24.6
+13.0+37.6
YoY Amount
-
-
-
+10%
+3%+6%
Local Currency
Overseas
Domestic +3.4%393.0
+8.1%327.0
Forecast YoY% Change
Sales 720.0+5.5
%
Operating Income 43.5 +11.2%
Ordinary Income 43.5 +10.3%
Net Income 22.0 +51.6%
Mid-term: ¥25, Year-end: ¥25 (Plan)Dividend
Overseas Sales Ratio 45.4%(+1.1%)
Operating Margin 6.0%(+0.3%) Exchange Rate 1 US$ = ¥80.0 1 Euro = ¥105 1 RMB = ¥12.5
(billions of yen)
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Domestic Cosmetics Business:Highly Selective Launch of New Products and Efforts to Create Longtime Sellers
Controlling the number of new product launches
MAQuillAGE Essence Glamorous Rouge TSUBAKI clé de peau BEAUTÉ
Continuedeffort
Double-digitgrowth
Mid-singledigit growth
Over1 million
items
Bringing carefully selected, highly competitive
new products to market
Continuedeffort
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Domestic Cosmetics Business:Fostering Existing Products by Strengthening Information Editing Capability
FY2011: Creation of new values FY2012 initiatives
Strengthening existing products
Newinitiative
Continuedeffort
Nationwide activities forinformation development and
beauty solutions forthe senior market
Information editing capability(product and research information)
Storefront activities of beauty consultants
Preparing a rich variety ofbeauty solutions for each season
Informationediting capability X
Activities ofbeauty
consultants
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Domestic Cosmetics Business:Introduction of a New Business Model
Mechanism to attract greaternumbers of regular customersby creating opportunities for“customers seeking beauty”
to meet Shiseido
Taking advantage ofthe characteristicsof both websites
and brick-and-mortar storesDeepeningrelationship
withcustomers
Store
Introduction
Introduction
Meetingcustomers
Havingcustomersfeel effects
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Watashi+: Situation after the Launch (Opened on April 21, 2012)
Purposes of the websiteTop page of the website
Number of page viewsof the website
Exceeded 1 million page views
Web counseling
Store Navigation system
Online shopping
An extensive menu that lets customers
feel the fun of makeup
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Strengthening Marketingwith CRM
Developing and using database
Enhancing Activities with watashi+
Database ofProducts Database ofStores
Database of
In-storeActivities
watashi+website
&Onlineshops
Shiseidoonline(SOL)shops
CustomerDatabase A points program
Customer analysis function Transmission of e-mails with specific
content by each store
“watashi+ store support site”that deepens the relationship
with customers we meet
Linked
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China
Highest-priorityinvestment
Aim for growth of mid teens, exceeding market sales growth,and over 100 billion yen
Improving growth potentialwhile maintaining high profitability
Priority investment
Quantity expansion
Q u al i t y i m pr ov em en t
Sustainable growthof specialty stores
Strengthening and expandingmasstige businesses and new markets
Reinforcing approachto the prestige market
Highest priority for injecting marketing costs
and human resources
Approach to injection of
management resources
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Global: Prestige Markets
Continuing to provide customers with a unique worldthat is hard to obtain elsewhere
Global brandclé de
peau Beauté
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Bare Mineral
Makeup: Fostering READY Skincare: From Japan to Asia
Entry to growth areasStrengthening initiatives in
countries we have already entered
Aiming for a double-digit sales increase
メーキャップの強化 Enhancingcommunications
BE A FORCE OF BEAUTY
Brazil: Entering the market in JuneUK: Channel expansionGermany: Business expansion at department stores
Expanding the skincarecategory
Strengthening makeup
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Designers’ Brands and Makeup Artist’s Brand
Aiming for “double-digit” growth in total overseas sales
Four brands of the fragrance business NARS , a makeup artist’s brand
Increasingthe number of stores
Increase the number of flagship stores, strengthenstore promotion, and expansion into more countries
Expansioninto morecountries
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+ 4.7 %
+ 6.0 %Achieving steady sales growth
FY20 11 Resu l ts FY20 12 Plan FY2013
To achieve 6% compound annual sales growth on a local currency basis
Targets of the Three-Year Plan
Targets of the three year:Sales = Achieving 6% annual growth, Operating margin = Achieving 10%
・・・
2011 2012 2013 ···
Cost of sales 23.9% ・・・
Marketing costs 23.5%
Personnel costs 23.9%
Other costs 22.9%
Operating margin 5.7% 6.0% 8.0% 10.0%
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* The arrows indicate an increase/decrease as a ratio to sales.
Marketing investment in Asia, especially in Japan and China, where market conditions aretough
Mandatory adoption of IFRS was postponed, resulting in the continuation of goodwill
amortization, etc.
Negative factorsfor profits
StructuralReform
Targets of the Three-Year Plan
Targets of the three year:Sales = Achieving 6% annual growth, Operating margin = Achieving 10%
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(billions of yen)
13/3
Estimate
YoYamountchange
YoY %change
12/3
Results
YoYamountchange
YoY %change
Investment in FixedAssets*
33.6 -0.7 -2% 34.3 +7.1 +26%
Property, Plant, andEquipment 21.6 +0 +0% 21.6 +2.5 +13%
Intangible Assets, etc. 12.0 -0.7 -5% 12.7 +4.6 +57%
Depreciations 32.7 +2.0 +7% 30.7 +1.2 +4%
Property, Plant, andEquipment
18.1 +0.7 +4% 17.4 +0.1 +0%
Intangible Assets, etc. 14.5 +1.3 +10% 13.2 +1.1 +9%
R&D Expenses 14.8 +0.1 +1% 14.7 +0.2 +1%
Advertising Expenses 52.4 +3.1 +6% 49.3 +6.6 +15%
*Capital investment, investment in property plant and equipment, long-term prepaid expenses and intangible asset excluding goodwill and trademarks, etc.
Supplemental Data