SHISEIDO Elevated to a New Stage on a Full Scale through Brand Innovation

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March 2016 16033 SHISEIDO Elevated to a New Stage on a Full Scale through Brand Innovation Shiseido has launched across-the-board innovation of SHISEIDO, which is marketed in 88 countries and regions of the world *1, since January 2016. Based on the belief that beauty gives rise to sympathy and serves as the power to make the world a better place, the new SHISEIDO will continue to shore up the penetration of brand value by primarily revamping the products, advertising visuals, models, sales counters and communications, including brand logos, and organizing events that allow consumers to feel our brand message, interpretation of the world and products firsthand. *1: As of February 2016 As the world s first new sales counter, we opened the SHISEIDO Social Counter at the Shinjuku Store of Odakyu Department Store on Tuesday, March 1, 2016 With this as the start, we will open the counters in various countries, including GUM in Moscow, Russia in early March and CK Tangs in Singapore at the end of March. As the initial product reflecting brand innovation, a new foundation hits the market on Tuesday, March 1 The Synchro Skin Lasting Liquid Foundation [one item, six types] designed to bring out the skin s innate color, glow and brightness hit the market globally starting on Tuesday, March 1. Sales promotion based on a new visual is under way in various countries. A talk show in Ginza, Tokyo A talk show is scheduled in Ginza Tokyo, where specialists who have a detailed knowledge of beauty are invited from both home and abroad on Sunday, March 20. Its video content will be distributed later on (scheduled for early April). Specific Initiatives for Brand Innovation (1) New Counter: SHISEIDO Social Counter Under the theme of the contemporary version of ichigo ichie (Treasure every encounter, for it will never recur), with the aim of expressing Japanese aesthetic awareness and creating an omotenashi (hospitality) style that fits customers who live in the social networking age, we will revamp our sales counters in department stores into the counterparts to give rise to sympathy and experience. Centered on the social table (counseling table) to deepen ties with customers and make them feel comfortable, we will install a functional tester to allow customers to see and touch the products as they like. The design of the white-based counter with red lines features the Hanatsubaki icon, which represents the heart of Shiseido, to boost the brand s visibility. An image of the new SHISEIDO Social Counter for Odakyu Department Store Shinjuku

(2) New Product Launch Shiseido launches the Synchro Skin Lasting Liquid Foundation designed to bring out the skin s innate color, glow and brightness globally as the first brand-new product reflecting brand innovation globally starting on Tuesday, March 1. The new product embodies one of Shiseido s product approaches: Reveal the skin, which has started with the SHISEIDO brand innovation initiative. It corrects skin problems while exploiting each individual s innate skin color. Furthermore, in line with changes of the skin during the day, it controls light and glow, thereby preventing creases or sebum shininess. Starting with this new product, the product package based on the brand color, i.e., red, featuring the Hanatsubaki logo, the brand s symbol, standing out in clear relief will be applied to the successive products one by one, thereby unifying brand image and enhancing the penetration of brand identity. The promotion for the new foundation features a visual aimed at recognizing unique beauty that each individual has and giving rise to sympathy and gets under way starting early March. A List of Products Name of Product Classification Content No. of Colors One Item, 6 Types Suggested Retail Price Shiseido Synchro Skin Lasting Liquid Foundation Foundation 30mL 6 colors 5,000 yen each (5,400 yen, tax included) *Available at 230 department stores all over Japan and Shiseido s general beauty website Watashi + (sold by Shiseido International). Package for the New Foundation Ad Visual (3) Communication Shiseido will organize a wide array of events to send the brand message of SHISEIDO, which keeps evolving, and share the brand s interpretation of the world, thereby creating a contact point with a new cluster of customers cenered on young adults that Shiseido has not yet fully covered and promoting the penetration of brand value. THE SHISEIDO TALK EVENT By inviting specialists who have a detailed knowledge of beauty from both home and abroad as speakers, we will hold a beauty -themed talk event. This event will be delivered through SNS globally, which will promote the penetration of the brand message: Positive strength that sympathizes with beauty changes the world into a better place. - Date and time: 14:00 to 18:00, Sunday, March 20, 2016 - Venue: Shiseido Hanatsubaki Hall (Shiseido Ginza Bldg. 3F, 7-5-5 Ginza, Chuo-ku, Tokyo) - Speakers: Gerhard Steidl *2 (founder of Steidl, a German-language publisher), etc. A total of four speakers are due to be invited. Audiences are by invitation only. Video content delivery is slated for early April. *2: Mr. Steidl appeared in the documentary film: How to Make a Book with Steidl (Released in Japan in 2013).

Brand Overview SHISEIDO, the brand marketed in 88 countries and regions of the world and positioned as the centerpiece in the prestige segment, has demonstrated stellar performance. Among others, the SHISEIDO ULTIMUNE Power Infusing Concentrate that symbolizes the brand has been rated highly by customers who wish to bring out their innate, internal beauty since it hit the market in September 2014; as a result, its cumulative sales topped the two million unit mark at the end of 2015 and its sales remain brisk today. Furthermore, this product has won a total of 84 *3 beauty awards both at home and abroad, with French magazine Marie Claire s highest Prix d Excellence award (2014), known as the world s most prestigious cosmetics award, heading the list. The number of the awards received is the highest in Shiseido s history. On top of these, the SHISEIDO Perfect UV Protection N sunscreen emulsion (launched in March 2015) featuring the company s unique cutting-edge WetForce technology *4, which strengthens the protective film against ultraviolet rays when exposed to perspiration or water, won the same award in 2015. Thus SHISEIDO was granted the honor for the second consecutive year, enjoying a high reputation throughout the world. *3: Cumulative total from September 2014 to February 2016 *4: Boost the uniformity of a sunscreen film on the skin and keep it stable

Brand Topics Shiseido will organize an event designed to propose yet-to-be-seen beauty to customers at The Stage on the first floor of the Main Building, Isetan Shinjuku (main branch of Isetan Department Store) for a limited period of time (Wednesday, March 23 through Tuesday, March 29, 2016). The Stage Event at Isetan Shinjuku Feel My Potential SHISEIDO ISETAN The Mitsukoshi Isetan Group works on the JAPAN SENSES initiative with This is Japan as the corporate message, where it reacknowledges the value created by Japanese traditon, culture and sense of beauty, and offers it as a new value to customers. Meanwhile, Shiseido has fused science with art since its foundation in 1872 and consistently created beauty of the respective times. The two companies that have valued Japanese culture and sense of beauty will join hands in organizing this event. The venue of the event is adjacant to the cosmetics department in the Main Building of Isetan Shinjuku, the retail outlet that draws attention globally. Visitors will be able to get a hands-on experience in SHISEIDO s interpretation of the world and brand values through a state-of-the-art sales space, digital content-based customer handling, sales of items yet to be released in Japan (for a limited period of time and in a limited quantity), and so on. Against the background of contemporary Japan, SHISEIDO as a brand of Japanese origin has fused leading-edge technology with art and brought out inner beauty through a Japanese heart (aesthetics consciousness and sensitivity) which pays attention to invisible things. At this event, it will also offer new possibilities of each individual s unique beauty that customers themselves have yet to realize. Moreover, based on the concept of this collaboration with Isetan, Shiseido will provide an opportunity to encounter various forms of beauty on each floor of the department store. - Dates: Wednesday, March 23 to Tuesday, March 29, 2016 - Venue: The Stage, Main Building 1F, Isetan Shinjuku The image of the event venue, The Stage on the 1st floor of the Main Building, Isetan Shinjuku A List of Products Available in a Limited Quantity during the Event at The Stage in the Main Bldg. of Isetan Shinjuku Name of Product Classification Content (Yet to be released in Japan) SHISEIDO Ever Bloom Eau De Parfum Fragrance 30 ml 50 ml Suggested Retail Price 7,000 yen (7,560 yen, tax included) 10,000 yen (10,800 yen, tax included) SHISEIDO ULTIMUNE Power Infusing Concentrate (Limited size) Concentrate 75 ml 16.000 yen (17,280 yen, tax included)