RESPONSIBLE ARTIFICIAL INTELLIGENCE USE POLICY

The Shiseido Group’s MISSION is BEAUTY INNOVATIONS FOR A BETTER WORLD. We believe beauty inspires hope and empowers happiness, contributing to a world of wellness and a lifetime of fulfillment for all things living.

In our quest to become the most trusted beauty company in the world, THE SHISEIDO PHILOSOPHY is our guiding light. It is at the heart of everything we do as we strive to be a global winner with our heritage. We will always act consistent with THE SHISEIDO PHILOSOPHY.

Artificial Intelligence is a transformative technology that allows Shiseido Group to continue to use advanced technological tools to innovate across our business. Nevertheless, our use of Artificial Intelligence models must be responsible and ethical, and must always be consistent with OUR MISSION, aligned with THE SHISEIDO PHILOSOPHY, and in compliance with the Shiseido Code of Conduct and Ethics.

This Responsible Artificial Intelligence Use Policy (“Policy”) governs the use of Artificial Intelligence models for either Analytical Artificial Intelligence or Generative Artificial Intelligence purposes by employees, contractors, vendors and partners in the performance of their functions for or on behalf of Shiseido Company, Limited, its subsidiaries and affiliates (collectively, the “Shiseido Group”).

Shiseido Group will comply with the following principles when creating, deploying, or using Artificial Intelligence for company business:

Artificial Intelligence is an evolving technology that is increasingly governed by various existing and new laws and regulations. We will need to comply with all laws and regulations that may apply in any country where we use Artificial Intelligence.

Artificial Intelligence must be used fairly, ethically, and in ways that avoid outcomes that could cause harm. For example, our use of Artificial Intelligence cannot create AI Content that is biased or unfairly discriminate against underrepresented groups.

Confidential or proprietary Shiseido Group or third-party information, or the personal information of our employees or customers, used in Artificial Intelligence must be protected and cannot be placed into an unsecured environment.

The intellectual property rights of others must be respected at all times. The Artificial Intelligence models we utilize must not use or create AI Content that infringes upon third-party intellectual property rights.

Shiseido Group Employees will be involved to ensure that AI Content is accurate, responsible, and when there is a high risk of potential harm or misuse. Our Employees must also ensure that AI Content is aligned with OUR MISSION, SHISEIDO PHILOSOPHY, and this Policy.

Shiseido Group will communicate clearly, accurately, and transparently with our stakeholders when we are using and making decisions based substantially on Artificial Intelligence. A governance committee will be established to ensure that Artificial Intelligence is used in accordance with this Policy and to oversee the creation of Shiseido Group-wide governance structures with clear roles and responsibilities and processes.

Our use of Artificial Intelligence must be understandable to users and stakeholders. Decisions and actions based upon the use of Artificial Intelligence must be clear, interpretable, and traceable, allowing stakeholders to understand how and why certain outcomes are reached.

AI Content must be designed and developed in such a way that it achieves, with respect to its intended purpose, an appropriate level of accuracy and soundness.

When designing Artificial Intelligence models, it must be developed in a manner in that it achieves, with respect to its intended purpose, an appropriate level of robustness and security, and performs consistently in those respects throughout its lifecycle.

Employees who violate this Policy are subject to disciplinary action, including but not limited to termination, in accordance with applicable laws.

We will review and revise this Policy as necessary to respond to changing legal and regulatory requirements, changes to Artificial Intelligence technological models, changes in people's lifestyles and environments, and examples of how Artificial Intelligence is being used in society.