Financial and Non-Financial Highlights

Financial Value

Net Sales, Operating Income, and Operating Margin¹

Net Income (Loss) per Share² and Return on Equity^{3, 4}

Interest-Bearing Debt and Interest-Bearing Debt Ratio^{3, 5}

EBITDA⁶ and Free Cash Flow

Net Sales by Reportable Segment^{1, 7, 8, 10, 11, 12}

Operating Profitability by Reportable Segment^{1, 7, 9, 10, 11, 12}

• The fiscal year ended December 31, 2015 is the 9 months from April 1, 2015 to December 31, 2015 for Shiseido and its consolidated subsidiaries in Japan and the 12 months from January 1, 2015 to December 31, 2015 for all other subsidiaries. In this report, it is referred to as "the year ended December 2015" in the text and as "2015/12" in tables, charts, and graphs.
• Net income (loss) per share is calculated before dilution based on the average number of shares outstanding during the fiscal year/period.
• The Shiseido Group subsidiaries in the Americas formerly recognized samples and promotional items associated with marketing activities at stores as assets when acquired and expensed them when shipped to customers. However, effective the year ended March 2012 these subsidiaries began to expense these items when acquired as part of its efforts to standardize Group accounting policies. The Shiseido Group applied this change retrospectively and restated the figures for the year ended March 2011 accordingly. Effective from the fiscal year ended March 31, 2014, certain subsidiaries of the Shiseido Group's retrospectively adopted a new standard for Employee Benefits (IAS 19, amended June 16, 2011) and changed the method for recognizing changes in net defined benefit obligation. The Shiseido Group applied this change retrospectively and restated the consolidated financial statements for the fiscal year ended March 31, 2013, accordingly.
• For calculating consolidated ROE for the period ended December 2015, the numerator used is net income attributable to owners of parent for the nine months ended December 31, 2015 for Shiseido and its consolidated subsidiaries whose fiscal year ended in March, and for the 12 months ended December 31, 2015 for consolidated subsidiaries whose fiscal year ended in December. The ROE is 7.6 percent when calculated based on net income attributable to owners of parent for the 12 months ended December 2015.
• Interest-bearing debt ratio = Interest-bearing debt / Invested capital* *Invested capital = Interest-bearing debt + Equity
• EBITDA (Earnings before interest, tax, depreciation and amortization) = Income (loss) before income taxes + Interest expense + Depreciation and amortization expense + Impairment loss on goodwill and other intangible assets
• Domestic Professional Division sales are included in the Global Business segment.
• Net sales by reportable segment represent sales to external customers only and do not include intersegment/interarea sales or transfers.
• Operating margin by reportable segment does not include eliminations/corporate.
• Segments were changed to reflect application of the "Revised Accounting Standard for Disclosures about Segments of an Enterprise and Related Information" (ASBJ Statement No. 17 of March 27, 2009) in the year ended March 2011. The change in segments has been retrospectively applied to data for years ended March 2010 and earlier.
• The Company partially revised its reportable segment classification method effective from the period ended December 2015. Accordingly, the "Domestic Cosmetics Business" and "Global Business" segments were reclassified as the "Japan Business" and "Global Business" segments, respectively. Taking into account this change, certain subsidiaries previously included in the "Domestic Cosmetics Business" segment were reallocated to "Global Business" and "Others". Moreover, in order to more accurately grasp actual operating results in each segment, the allocation method for certain expenses was also revised.
• Effective from the year ended December 2017, the Company has revised its reportable segment classification method in line with the Group's internal financial management structure. As a result, reportable segment classifications have been changed to the "Japan Business," "China Business," "Asia Pacific Business," "Americas Business," "EMEA Business," "Travel Retail Business," and "Professional Business" segments. Segment information for the year ended December 2016 has been restated in line with changes in the method of classifying reportable segments.

Shareholder Value

Shiseido Share Price & Nikkei Stock Average

Price/Earnings Ratio (PER)^{1, 2} & Price/Book Value Ratio (PBR)³

Cash Dividends per Share, Consolidated Payout Ratio¹ & Dividend Yield⁴

• 1 PER and consolidated payout ratio are not presented for the year ended March 2013 because of the net loss.
• 2 Price/Earnings ratio = Closing stock price at fiscal year-end / Net income per share
• 3 Price/Book value ratio = Closing stock price at fiscal year-end / Net assets per share
• 4 Dividend yield = Cash dividends per share / Closing stock price at fiscal year-end

Human and Social Value

Percentage of Female Leaders¹

Stability Rate for Employees in Japan Returning to Work after Taking Childcare Leave²

Number and Ratio of Non-Japanese Hires in Japan³

Track Record of Mid-Career Hires in Japan⁴

• 1 For the years ended March 2012 through March 2015, the percentage of female leaders is as of April 1 each year in Japan and January 1 each year overseas. For the period ended December 2015 and subsequent 2016, the percentage of female leaders is as of December 31 for both Japan and overseas.
• 2 Number of employees who returned to work after taking childcare leave in the previous fiscal year and are still working as of the end of the current year / Total number of employees who returned to work after taking childcare leave in the previous fiscal year x 100
• 3 Shiseido Company, Limited data
• 4 Figures for the fiscal year ended March 2012 are as they were on March 31, 2012, and figures for the fiscal year ended December 2017 are as they were on December 31, 2017.