Information regarding transfer of the subsidiary's shares

It is hereby notified that Shiseido has determined to transfer its shareholding in subsidiary SHISEIDO Kozmetik Anonim Şirketi* (located in Istanbul, Turkey, and hereinafter referred to as “Shiseido Turkey”), which imports and sells SHISEIDO brand products in Turkey, to Vepa Dış Ticaret Limited Şirketi (located in Istanbul, Turkey, and hereinafter referred to as “Vepa”), Shiseido’s joint venture partner company.
*After the transfer of the shares, the company will be renamed Vepa Perakende Kozmetik Anonim Şirketi

Reason for the transfer

As part of its medium-to-long term strategy “VISION 2020” announced in December 2014, Shiseido has been striving to achieve greater brand value and promote the reform of business structure. In the overseas business, in particular, the Company has been bolstering its collaboration with partners that have a full knowledge of local cosmetics markets, thereby seeking to attain a higher profile in each market and improve profitability. As part of these efforts, Shiseido in August 2015 sold all its shareholding in its Greek subsidiary to Folli-Follie, a player with strong sales and marketing capabilities in Greece, and entered into a distributor agreement with aforementioned subsidiary. Meanwhile, in November 2015 under its selection and concentration strategy, Shiseido decided to concentrate on its prestige business in India by terminating sales of products under “Za”, a low- and medium-price brand in the country, liquidating its Indian subsidiary, and stepping up its collaboration with distributor Baccarose Perfumes ＆ Beauty Products Pvt. Ltd.
In order to further enhance the brand under the rapidly changing business environment in Turkey, we recently reached the decision that the best measure is to affiliate with Vepa which has a full knowledge of the local prestige market and retail business.
More specifically, Shiseido will sell all of the shares of Shiseido Turkey, importer and distributor of SHISEIDO brand products in the Republic of Turkey, that it owns (51%) to Vepa and will sign an agreement with Vepa Perakende Kozmetik Anonim Şirketi (formerly Shiseido Turkey), a wholly-owned subsidiary of Vepa after the transfer, under which the subsidiary will serve as the importer and distributor of SHISEIDO brand products in the Republic of Turkey.
The Republic of Turkey is one of the promising markets for SHISEIDO brand when seen from a long-term perspective and Shiseido will work towards sustainable growth and further strengthening of the brand in Turkey by collaborating system with Vepa that has a strong sales and marketing capability in the prestige market in the Republic of Turkey.

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