Interim report
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N ovember 10, 2025 Consolidated Settlement of Accounts for the Nine Months Ended September 30, 2025 [IFRS] Shiseido Company, Limited Listings: Tokyo Stock Exchange (Code Number 4911) URL: https://corp.shiseido.com/en/ Representative: Kentaro Fujiwara, Representative Corporate Executive Officer, President and CEO Contact: Yuki Oshima, Vice President, Investor Relations Department Tel. +81-3-3572-5111 Start of cash dividend payments: - Supplementary materials prepared: Yes Quarterly financial results information meeting held: Yes (for institutional investors and analysts, etc.) 1. Performance for the Nine Months Ended September 30, 2025 (From January 1, 2025 to September 30, 2025) * Amounts less than one million yen have been rounded down. (1) Consolidated Operating Results (Millions of yen; percentage increase (decrease) figures denote year-on-year change) Net Sales Core Operating Profit Operating Profit Profit Before Tax Profit Attributable to Owners of Parent Total Comprehensive Income % % % % % % Nine Months Ended September 30, 2025 693,817 [(4.0)] 30,080 [9.7] (33,350) [－] (32,518) [－] (43,983) [－] (56,111) [－] Nine Months Ended September 30, 2024 722,754 [0.0] 27,415 [(25.6)] 2,183 [(91.5)] 7,152 [(75.1)] 754 [(96.3)] 5,142 [(92.4)] [Re ference] Profit Nine months ended September 30, 2025: ¥(44,061) million [ －%] Nine months ended September 30, 2024: ¥1,434 million [(93.4)%] Basic Earnings per Share (Yen) Diluted Earnings per Share (Yen) Nine Months Ended September 30, 2025 (110.10) (110.10) Nine Months Ended September 30, 2024 1.89 1.89 No tes: 1. Core operating profit is calculated as operating profit excluding profits or losses incurred by non- ordinary factors (non-recurring items), such as costs and expenses related to structural reforms, impairment losses, acquisitions, etc. 2. In the first nine months of fiscal year 2025, there were 178 thousand dilutive potential ordinary shares. However, as they had an anti- dilutive effect, they have been excluded from the calculation of diluted loss per share.
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(2) Consolidated Financial Position (Millions of yen) Total Assets Total Equity Equity Attributable to Owners of Parent Ratio of Equity Attributable to Owners of Parent As of September 30, 2025 1,208,881 585,407 565,302 46.8% As of December 31, 2024 1,331,848 654,643 632,474 47.5% 2. Cash Dividends Cash Dividends per Share (Yen) Q1 Q2 Q3 Year-End Full Year Fiscal Year 2024 － 30.00 － 10.00 40.00 Fiscal Year 2025 － 20.00 － Fiscal Year 2025 (Forecast) 20.00 40.00 Note: Revision to the most recently disclosed dividend forecast: None 3. Forecast for the Fiscal Year Ending December 31, 2025 (From January 1, 2025 to December 31, 2025) (Millions of yen; percentage figures denote year-on-year change) Net Sales Core Operating Profit Operating Profit Profit Before Tax Profit Attributable to Owners of Parent Basic Earnings per Share (Yen) % % % % % Fiscal Year 2025 965,000 [(2.6)] 36,500 [0.4] (42,000) [－] (42,000) [－] (52,000) [－] (130.17) Note: Revision to the most recently disclosed performance forecast: Yes
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Notes (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies; changes in accounting estimates 1) Changes in accounting policies required by IFRS: None 2) Other changes in accounting policies: None 3) Changes in accounting estimates: None (3) Number of shares issued (ordinary shares) 1) Number of shares issued (including treasury shares) As of September 30, 2025: 400,000,000 As of December 31, 2024: 400,000,000 2) Number of treasury shares As of September 30, 2025: 472,080 As of December 31, 2024: 576,863 3) Average number of shares outstanding during the period Nine months ended September 30, 2025: 399,471,470 Nine months ended September 30, 2024: 399,620,002 Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountant or an audit firm: Yes (voluntary) Appropriate use of business forecasts; other special items (Cautionary note concerning forward-looking statements) In this report, statements other than historical facts are forward -looking statements that reflect the Company’s plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results and achievements to differ from those anticipated in these statements. Please refer to “1. Summary of Consolidated Financial Resul ts for the Nine Months Ended September 30, 2025 (3) Consolidated Forecast and Other Forward-Looking Information” on page 9 for information on preconditions underlying the above outlook and other related information.
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1 Contents 1. Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2025 .... 2 (1) Consolidated Performance .................................................................................................................... 2 (2) Financial Position ................................................................................................................................. 8 (3) Consolidated Forecast and Other Forward-Looking Information ...................................................... 9 2. Condensed Quarterly Consolidated Financial Statements and Notes ............................................. 11 (1) Condensed Quarterly Consolidated Statement of Financial Position ................................................ 11 (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income ....................................... 13 (3) Condensed Quarterly Consolidated Statement of Changes in Equity .............................................. 15 (4) Condensed Quarterly Consolidated Statement of Cash Flows ........................................................... 17 (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements .................................... 18 (Applicable Financial Reporting Framework) .................................................................................... 18 (Note on Assumptions of a Going Concern) .................................................................................... 18 (Impairment test of Goodwill) ....................................................................................................... 18 (Segment Information, etc.) ............................................................................................................... 19 (Significant Subsequent Events) .............................................................................................................. 23 Independent Auditor’s Report on Review of Quarterly Consolidated Financial Statements ................... 24
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2 1. Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2025 (1) Consolidated Performance (Millions of yen) Net Sales Core Operating Profit Operating Profit (Loss) Profit (Loss) before Tax Profit (Loss) Attributable to Owners of Parent EBITDA Nine Months Ended September 30, 2025 693,817 30,080 (33,350) (32,518) (43,983) 67,942 Nine Months Ended September 30, 2024 722,754 27,415 2,183 7,152 754 67,337 Year-on-Year Increase (Decrease) (4.0)% 9.7% － － － 0.9% FX-Neutral (3.2)% Like-for-Like (2.9)% Notes: 1. Core operating profit is calculated as operating profit excluding profits or losses incurred by non-ordinary factors (non-recurring items), such as costs and expenses related to structural reforms, impairment losses, acquisitions, etc. 2. EBITDA is calculated by adding depreciation and amortization expenses (excluding depreciation of right -of-use assets) to core operating profit. 3. Like-for-like increase (decrease) in net sales excludes the impacts of foreign exchange translation and all business transfers in the first nine months of fiscal year 2025 and 2024 as well as the services provided during the transition period, and the impact of sales prior to the acquisition of Dr. Dennis Gross Skincare in the fiscal year 2024 and its corresponding period in the first nine months of fiscal year 2025 (“business transfer and acquisition impacts”). During the first nine months of fiscal year 2025, the global economy witnessed increased uncertainty amid escalating geopolitical risks and deceleration in the pace of growth coupled with the U.S. tariff situation. The domestic cosmetics market grew at a moderate pace. While the number of foreign visitors to Japan continued to rise, inbound cosmetics market experienced slower -than expected growth due to shifts in consumption behavior of foreign visitors coupled with their fading appetite for spending in l ight of increasing price convergence in domestic and overseas markets. The overseas cosmetics market witnessed signs of recovery despite the headwinds which persisted across all regions throughout the period. The duty-free retail market including Hainan island also continued to struggle in a challenging environment due to subdued consumer spending amid worsening economic sentiment, while China’s cosmetics market returned to a recovery trend. Meanwhile, the cosmetics markets in the U.S. and Europe saw modest growth albeit at a slower-than-expected pace. Driven by its corporate mission, BEAUTY INNOV A TIONS FOR A BETTER WORLD, the Shiseido Group (the “Group”) actively promotes innovations aiming to resolve social and environmental issues with a focus on diversity, equity and inclusion. In 2023, the Company launched its medium -term strategy “SHIFT 2025 and Beyond” and we have been progressively implementing key strategic actions towards completion of structural reforms, aiming to achieve cost reduction on a global basis, while also rebuilding our organizational structure to realize gross profit maximization. In November 2024, the Company launched the “Action Plan 2025-2026” to be executed over the two years in order to better drive a swift recovery in our profitability and ensure sustainable growth thereafter. Under the Action Plan, we are striving to “reinforce brand foundation,” “rebuild profitable foundation,” and “enhance operational governance” to establish a resilient business model and deliver sustainable profit growth
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3 amid volatile market conditions. In the first year of the Action Plan, we are in the midst of executing our priority actions towards achieving a core operating profit margin of 7% in 2026. And, the Company has unveiled the “2030 Medium -Term Strategy” with the aim of pursuing new growth opportunities by leveraging Shiseido’s competitive advantage that lies in its value creation and value communication capabilities and maximizing its corporate value over the next five years. Under the new vision toward 2030 “By connecting with people, we pursue, create, and share new beauty, enriching everyone’s lives” built on the core value of contributing to society that goes back to its foundation, the Company will ensure it drives sales growth ahead of the market, achieving a core operating profit margin of above 10% by 2030 based on three strategic pillars; “accele rate growth with brand power,” “evolve global operations,” and “drive sustainable value creation.” Net sales in the first nine months of fiscal year 2025 decreased 4.0% year-on-year to ¥693.8 billion on a reported basis, down 3.2% year -on-year on a FX -neutral basis, or down 2.9% year -on-year on a like -for-like basis, excluding the impacts of foreign exchange translation, business transfers and acquisitions. Net sales on a like- for-like basis decreased year-on-year, primarily reflecting the weakness in the China & Travel Retail Business due to the lingering impact of subdued consumption on the back of det eriorating economic sentiment, as well as in the Americas Business which suffered ongoing challenges with Drunk Elephant. Core operating profit increased ¥2.7 billion year -on-year to ¥30.1 billion, with positive impacts of global - wide structural reforms and cost management offsetting the profit declines in the Americas and China & Travel Retail Businesses. Profit attributable to owners of parent decreased ¥44.7 billion year -on-year albeit a year-on-year increase in core operating profit, incurring a l oss of ¥44.0 billion reflecting the impact of a goodwill impairment loss of ¥46.8 billion which has been recognized in the period, based on the results of an impairment test conducted in light of the declined profitability in the Americas Business during the period. This recognition of an impairment loss has not, or will not have any impact on cash flow of the Company in fiscal 2025. For further details, please refer to 2. Condensed Quarterly Consolidated Financial Statements and Notes, (5) Notes Concerning Condense d Quarterly Consolidated Financial Statements (Impairment test of Goodwill). The EBITDA margin was 9.8%. The foreign exchange rates for the major currencies applied to accounting line items (income and expense accounts) in the Company’s consolidated financial statements for the first nine months of fiscal year 2025 are JPY148.1/USD, JPY165.5/EUR, and JPY20.5/ C N Y.
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4 [Consolidated Performance] (Millions of yen) Classification Nine Months Ended September 30, 2025 % of Total Nine Months Ended September 30, 2024 % of Total Year-on-Year Increase (Decrease) Amount Percentage FX- Neutral Like-for- Like Japan Business 219,105 31.6% 218,795 30.3% 310 0.1% 0.1% 0.3% China & Travel Retail Business 240,036 34.6% 259,656 35.9% (19,619) (7.6)% (5.7)% (5.7)% Asia Pacific Business 52,504 7.6% 53,249 7.4% (745) (1.4)% (1.4)% (0.9)% Americas Business 78,187 11.3% 87,203 12.0% (9,016) (10.3)% (8.1)% (9.1)% EMEA Business 96,121 13.9% 91,559 12.7% 4,561 5.0% 4.2% 4.2% Other 7,861 1.1% 12,290 1.7% (4,428) (36.0)% (35.6)% (29.2)% Total 693,817 100.0% 722,754 100.0% (28,937) (4.0)% (3.2)% (2.9)% Classification Total sales including intersegment sales and internal transfers between segments Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Japan Business 220,085 219,395 China & Travel Retail Business 242,304 262,302 Asia Pacific Business 53,415 53,985 Americas Business 81,553 91,865 EMEA Business 100,137 94,319 Other 9,454 13,637 Subtotal 706,950 735,506 Adjustments (13,133) (12,751) Total 693,817 722,754
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5 Classification Nine Months Ended September 30, 2025 Ratio to Net Sales Nine Months Ended September 30, 2024 Ratio to Net Sales Year-on-Year Increase (Decrease) Amount Percentage Japan Business 27,928 12.7% 16,240 7.4% 11,688 72.0% China & Travel Retail Business 46,676 19.3% 49,577 18.9% (2,901) (5.9)% Asia Pacific Business 1,758 3.3% 2,534 4.7% (775) (30.6)% Americas Business (7,586) (9.3)% (3,626) (3.9)% (3,960) ─ EMEA Business 915 0.9% 759 0.8% 156 20.6% Other (1,421) (15.0)% 110 0.8% (1,531) ─ Subtotal 68,271 9.7% 65,595 8.9% 2,675 4.1% Adjustments (38,191) ─ (38,180) ─ (10) ─ Total 30,080 4.3% 27,415 3.8% 2,665 9.7% Notes: 1. From the first nine months ended September 30, 2025, the “China Business” and the “Travel Retail Business” have been changed to the “China & Travel Retail Business.” The business results related to the operation of domestic sales by IPSA Co., Ltd. and the operation of sales of health & beauty foods, etc. by healthcare business previously included in the “Other” are now included in the “Japan Business.” The method of calculating profit or loss for reportable segments have been changed. For more details, please refer to “Segment Information, etc.” under “2. Condensed Quarterly Consolidated Financial Statements and Notes, (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements.” Segment information for the first nine months ended September 30, 2024 has been restated to reflect these changes. 2. Like-for-like increase (decrease) in net sales excludes the impacts of foreign exchange translation, business transfer and acquisition impacts. 3. The “Other” includes the restaurant business, etc. 4. The ratio of core operating profit (loss) to net sales shows core operating profit or loss as a percentage of total sales including intersegment sales and internal transfers between segments. 5. The “Adjustments” in core operating profit (loss) primarily reflects the head office expenses that are not allocated to each operating segment, the difference between the allocation amount to each operating segment and the actual amount, cost difference, etc. From the first nine months ended September 30, 2025, the head office expenses that were previously recognized in the “Other,” are recognized in the “Adjustments”. The expenses are incurred mainly by head office administration departments, R&D, etc.
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6 Results by reportable segment are provided below. Japan Business In the Japan Business, we are focusing our activities on high-growth, high-profit brands and products as well as consumer touchpoints to accelerate business growth through the implementation of our business transformation plan “Mirai Shift NIPPON 2025” while steadily increasing profitability by our continued efforts on fixed cost reduction. During the period, we successfully delivered robust growth in core brands led by SHISEIDO, Clé de Peau Beauté, and ELIXIR, benefitting primarily from the strength of new products infused with cutting- edge technology. On the contrary, while the number of foreign visitors continued to rise, inbound sales in the Japan Business showed signs of a slowdown weighed down primarily by the changes in consumption behavior of foreign visitors coupled with their fading appetite for spending in light of increasing price convergence in domestic and overseas markets. As a result, we ended the period with net sales of ¥219.1 billion, up 0.1% year-on-year on a reported basis, or up 0.3% year-on-year on a like-for-like basis excluding the impacts of business transfers. Core operating profit was ¥27.9 billion with a year -on-year increase of ¥11.7 billion, primaril y reflecting the positive impacts of structural reforms. China & Travel Retail Business In the China & Travel Retail Business, although the Business continued to be unfavorably impacted by the decline in consumer spending amid worsening economic sentiment, we managed to deliver a year-on-year sales growth for the third quarter of the year. In China, we delivered robust growth led by the strength of Clé de Peau Beauté and NARS coupled with significant growth in e-commerce channels delivered across brands. In Travel Retail (sales of cosmetics and fragrances primarily through airport and downtown duty-free stores), while the Business was benefitted from a steady shift towards a business model focused on tourists, sales declined year - on-year for the period amid ongoing challenges due to declining consumer spending by Chinese tourists in Hainan Island and South Korea. As a result, net sales were ¥240.0 billion, down 7.6% year -on-year on a reported basis, down 5.7% on a FX- neutral basis, or down 5.7% year -on-year on a like -for-like basis excluding the impacts of foreign exchange translation and busi ness transfers. Core operating profit decreased ¥2.9 billion year -on-year to ¥46.7 billion, with the decline in gross profit from lower sales being partially offset by the positive impacts of structural reforms including fixed cost reductions. Asia Pacific Business In the countries and regions of the Asia Pacific Business, we achieved growth in Southeast Asia led by Thailand as well as in South Korea, with Clé de Peau Beauté and NARS both delivering year-on-year revenue gains. Overall, however, we posted a year -on-year revenue decline for the period, weighed down by the market contraction in Taiwan. As a result, net sales were ¥52.5 billion, down 1.4% year -on-year on a reported basis, down 1.4% year -on- year on a FX-neutral basis, or down 0.9% year-on-year on a like-for-like basis excluding the impacts of foreign exchange translation and business transfers. Core operating profit decreased year-on-year by ¥0.8 billion to ¥1.8 billion owing primarily to the decline in gross profit driven by lower sales and increase in personnel expenses due to inflation. Americas Business In the Americas Business, we delivered a year -on-year revenue growth with SHISEIDO and Clé de Peau Beauté. On the contrary, Drunk Elephant continued to experience an ongoing revenue decline from the previous fiscal year. As a result, net sales were ¥78.2 billion, down 10.3% year -on-year on a reported basis, down 8.1% on a FX- neutral basis, or down 9.1% year -on-year on a like -for-like basis excluding the impacts of foreign exchange translation, business transfers and acquisitions. Core operating profit de creased year-on-year by ¥4.0 billion, incurring a loss of ¥ 7.6 billion with the positive impacts of structural reforms including fixed cost reductions partially offsetting a decline in profitability due to lower gross profit driven by sales decline and a higher cost
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7 of sales ratio as well as the U.S. tariff impact. EMEA Business In the EMEA Business, while the Business continued to be affected by the ongoing struggle with Drunk Elephant, the Fragrances demonstrated robust growth fueled by Zadig&Voltaire and narciso rodriguez which benefitted from new products launches. As a result, net sales were ¥96.1 billion, up 5.0% year -on-year on a reported basis, up 4.2% year-on-year on a FX-neutral basis, or up 4.2% year-on-year on a like-for-like basis excluding the impacts of foreign exchange translation and business transfers. Core operating profit increased ¥0.2 billion year-on-year to ¥ 0.9 billion with the impact of strategic increase in marketing investments being more than offset by higher gross profit driven by sales growth.
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8 (2) Financial Position Total assets decreased by ¥123.0 billion from the end of the previous fiscal year to ¥1,208.9 billion, from a decrease in goodwill, a decrease in asset amount translated into yen appreciation, a decrease in cash and cash equivalents primarily due to payments of trade and other payables, and a decrease in property, plant and equipment. Liabilities decreased by ¥53.7 billion to ¥623.5 billion, primarily due to a decrease in redemption of bonds. Equity decreased by ¥69.2 billion to ¥585.4 billion, due to a decrease in retained earnings associated with loss and dividend payments. The net debt-to-equity ratio, which indicates the ratio of interest-bearing debt (excluding lease liabilities) less cash and cash equivalents to equity attributable to owners of parent, was 0.21. (Cash flow analysis) Cash and cash equivalents at the end of the first nine months of fiscal year 2025 stood at ¥78.2 billion, ¥20.3 billion less than the amount of ¥98.5 billion at the beginning of the current fiscal year. (Cash Flows from Operating Activities) Net cash provided by operating activities in the first nine months of fiscal year 2025 increased by ¥18.5 billion year-on-year to ¥61.5 billion, primarily due to increase factors such as ¥53.3 billion of "Depreciation and amortization" and ¥51.2 billion of "Impairment losses (reversal of impairment losses)" while there were decrease factors such as ¥32.5 billion of "Loss before tax" and ¥27.2 billion of "Increase (decrease) in trade payables". (Cash Flows from Investing Activities) Net cash used in investing activities in the first nine months of fiscal year 2025 decreased by ¥41.7 billion year-on-year to ¥29.9 billion, primarily due to purchases of property, plant and equipment such as investment in factory equipment of ¥17.0 billion and purchases of intangible assets such as investment in IT systems of ¥15.5 billion. (Cash Flows from Financing Activities) Net cash used in financing activities in the first nine months of fiscal year 2025 increased by ¥58.3 billion year-on-year to ¥50.9 billion, primarily due to the decrease in short-term borrowings of ¥28.9 billion, the redemption of bonds of ¥20.0 billion, the repayment of lease liabilities of ¥17.6 billion and the payment of cash dividends of ¥11.8 billion while the increase was due to proceeds from long-term borrowings of ¥30.0 billion. Consolidated Statement of Cash Flows (Summary) (Billions of yen) Category Amount Cash and cash equivalents at beginning of period 98.5 Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents 61.5 (29.9) (50.9) (1.1) Net change in cash and cash equivalents (decrease) (20.3) Cash and cash equivalents at end of period 78.2
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9 (3) Consolidated Forecast and Other Forward-Looking Information Net sales for the fiscal year ending December 31, 2025 are expected to fall short of the previous forecast, primarily reflecting the deceleration of inbound tourism consumption in Japan, a market slowdown in the U.S., as well as continued weakness with Drunk Elephant. The core operating profit is expected to remain in line with the previous forecast. While there may be an impact of certain factors including a decline in gross profit due to lower sales and the U.S. tariff policy, these will likely be largely offset by the benefits of company-wide structural reforms and cost management. The operating profit, profit before tax and profit attributable to owners of parent are expected to fall short of the previous forecasts as the Company has recognized a goodwill impairment loss of ¥46.8 billion in the third quarter of the year, based on the results of an impairment test conducted due to the declined profitability in the Americas Business. The loss in the valuation of equity shares associated with the decline in the net book value of shares of Shiseido Americas Corp., a subsidiary owned and controlled by the Company, attributed primarily to the aforementioned impairment loss reported for the period will be recognized in its non-consolidated financial statements for fiscal 2025. The loss in the valuation of equity shares, however, will only be recognized on a non-consolidated basis, and, therefore, will not have any impact on the Company’s consolidated financial results for fiscal 2025 as well as its future earnings outlook. The forecast for annual dividend for the fiscal year ending December 31, 2025 remain unchanged. We have declared an annual dividend of ¥40 (the interim dividend (paid out) and year -end dividend of ¥20 per share, respectively). Revisions to the Consolidated Earnings Forecasts for the Fiscal Y ear 2025 (From January 1 to December 31, 2025) (Millions of yen unless otherwise stated) Net Sales Core Operating Profit Operating Profit (Loss) Profit (Loss) before Tax Profit (Loss) Attributable to Owners of Parent Basic Earnings (Loss) per Share (Yen) Previous Forecast (A) 995,000 36,500 13,500 14,500 6,000 15.02 Revised Forecast (B) 965,000 36,500 (42,000) (42,000) (52,000) (130.17) Change (B−A) (30,000) - (55,500) (56,500) (58,000) - Change (%) (3.0)% - - - - - (Reference) Results for the Fiscal Year Ended December 31, 2024 990,586 36,359 7,575 (1,265) (10,813) (27.06) Currency exchange assumptions are as follows; Previous: USD/JPY: 145 yen, EUR/JPY: 155 yen, CNY/JPY: 20.0 yen Revised : USD/JPY: 148 yen, EUR/JPY: 168 yen, CNY/JPY: 20.5 yen
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10 Reference Information: Forecast for Consolidated Net Sales by Reportable Segment Forecast for Consolidated Net Sales (YoY change) by reportable segment are as follows: Classification Revised Forecast Previous Like-for-Like YoY YoY FX-Neutral YoY Like-for-Like Japan Business - - +low single digit % +high single digit% China & Travel Retail Business - - −mid single digit % −mid single digit % Asia Pacific Business - - +low single digit % +low teen % America Business - - −mid single digit % +low teen % EMEA Business - - +mid-single digit % +high single digit % Total (3)% (2)% (1)% 4% Notes: Like-for-like increase (decrease) in net sales excludes the impacts of foreign exchange translation, business transfers, and acquisitions.
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11 2. Condensed Quarterly Consolidated Financial Statements and Notes (1) Condensed Quarterly Consolidated Statement of Financial Position As of December 31, 2024 As of September 30, 2025 Millions of yen Millions of yen Assets Current assets Cash and cash equivalents 98,479 78,160 Trade and other receivables 154,305 148,103 Inventories 160,507 149,915 Other financial assets 28,382 24,275 Other current assets 36,125 39,439 Total current assets 477,800 439,894 Non-current assets Property, plant and equipment 294,411 281,133 Goodwill 108,013 55,225 Intangible assets 179,390 174,151 Right-of-use assets 104,876 93,019 Investments accounted for using equity method 2,908 2,887 Other financial assets 89,556 88,570 Retirement benefit asset 10,261 9,740 Deferred tax assets 54,782 55,538 Other non-current assets 9,848 8,720 Total non-current assets 854,048 768,987 Total assets 1,331,848 1,208,881
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12 As of December 31, 2024 As of September 30, 2025 Millions of yen Millions of yen Liabilities and equity Liabilities Current liabilities Trade and other payables 152,199 118,421 Bonds and borrowings 107,000 58,121 Lease liabilities 21,223 20,012 Other financial liabilities 6,391 2,608 Income taxes payable 3,413 11,398 Provisions 4,527 3,951 Other current liabilities 103,807 112,130 Total current liabilities 398,562 326,644 Non-current liabilities Bonds and borrowings 131,620 161,584 Lease liabilities 103,317 92,039 Other financial liabilities 20,630 19,243 Retirement benefit liability 5,037 5,327 Provisions 1,852 3,558 Deferred tax liabilities 3,640 3,892 Other non-current liabilities 12,544 11,183 Total non-current liabilities 278,642 296,829 Total liabilities 677,205 623,473 Equity Share capital 64,506 64,506 Capital surplus 74,138 73,924 Treasury shares (2,325) (1,902) Retained earnings 356,877 301,663 Other components of equity 139,277 127,110 Total equity attributable to owners of parent 632,474 565,302 Non-controlling interests 22,169 20,104 Total equity 654,643 585,407 Total liabilities and equity 1,331,848 1,208,881
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13 (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income Condensed Quarterly Consolidated Statement of Profit or Loss Nine Months Ended September 30 Nine months ended September 30, 2024 Nine months ended September 30, 2025 Millions of yen Millions of yen Net sales 722,754 693,817 Cost of sales 168,565 161,818 Gross profit 554,189 531,998 Selling, general and administrative expenses 554,906 520,586 Other operating income 5,423 3,957 Impairment of goodwill － 46,818 Other operating expenses 2,523 1,902 Operating profit (loss) 2,183 (33,350) Finance income 6,107 5,458 Finance costs 3,125 5,160 Share of profit of investment accounted for using equity method 1,986 534 Profit (loss) before tax 7,152 (32,518) Income tax expense 5,718 11,543 Profit (loss) 1,434 (44,061) Profit (loss) attributable to Owners of parent 754 (43,983) Non-controlling interests 679 (78) Profit (loss) 1,434 (44,061) Earnings per share Basic earnings (loss) per share (yen) 1.89 (110.10) Diluted earnings (loss) per share (yen) 1.89 (110.10)
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14 Condensed Quarterly Consolidated Statement of Comprehensive Income Nine Months Ended September 30 Nine months ended September 30, 2024 Nine months ended September 30, 2025 Millions of yen Millions of yen Profit (loss) 1,434 (44,061) Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income 12 153 Remeasurements of defined benefit plans (142) 68 Share of other comprehensive income of investments accounted for using equity method 0 － Total of items that will not be reclassified to profit or loss (130) 221 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 4,674 (12,168) Share of other comprehensive income of investments accounted for using equity method (835) (103) Total of items that may be reclassified to profit or loss 3,838 (12,271) Other comprehensive income, net of tax 3,708 (12,049) Comprehensive income 5,142 (56,111) Comprehensive income attributable to Owners of parent 4,371 (55,871) Non-controlling interests 770 (239) Comprehensive income 5,142 (56,111)
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15 (3) Condensed Quarterly Consolidated Statement of Changes in Equity Nine Months Ended September 30, 2024 (From January 1, 2024 to September 30, 2024) Equity attributable to owners of parent Share capital Capital surplus Treasury shares Retained earnings Other components of equity Exchange differences on transition of foreign operations Financial assets measured at fair value through other comprehen- sive income Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Balance as of January 1, 2024 64,506 74,000 (1,591) 380,208 101,624 － Profit (loss) 754 Other comprehensive income 3,720 40 Total comprehensive income － － － 754 3,720 40 Purchase of treasury shares (1,047) Disposal of treasury shares (17) 309 (15) Dividends (23,981) Change in ownership interest in subsidiaries (0) Share-based payment transactions (79) 381 Transfer to retained earnings (102) (40) Other (36) Total transactions with owners － (96) (737) (23,753) － (40) Balance as of September 30, 2024 64,506 73,903 (2,328) 357,209 105,344 － Equity attributable to owners of parent Non- controlling interests Total Other components of equity Total Remeasure- ments of defined benefit plans Total Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Balance as of January 1, 2024 － 101,624 618,748 21,644 640,392 Profit (loss) － 754 679 1,434 Other comprehensive income (142) 3,617 3,617 90 3,708 Total comprehensive income (142) 3,617 4,371 770 5,142 Purchase of treasury shares － (1,047) (1,047) Disposal of treasury shares － 277 277 Dividends － (23,981) (1,917) (25,898) Change in ownership interest in subsidiaries － (0) 0 － Share-based payment transactions － 302 302 Transfer to retained earnings 142 102 － － Other － (36) (358) (394) Total transactions with owners 142 102 (24,484) (2,275) (26,759) Balance as of September 30, 2024 － 105,344 598,635 20,139 618,775
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16 Nine Months Ended September 30, 2025 (From January 1, 2025 to September 30, 2025) Equity attributable to owners of parent Share capital Capital surplus Treasury shares Retained earnings Other components of equity Exchange differences on transition of foreign operations Financial assets measured at fair value through other comprehen- sive income Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Balance as of January 1, 2025 64,506 74,138 (2,325) 356,877 139,277 － Profit (loss) (43,983) Other comprehensive income (12,166) 209 Total comprehensive income － － － (43,983) (12,166) 209 Purchase of treasury shares (1) Disposal of treasury shares 425 (152) Dividends (11,984) Change in ownership interest in subsidiaries (16) Share-based payment transactions (198) 622 Transfer to retained earnings 277 (209) Other 6 Total transactions with owners － (214) 423 (11,230) － (209) Balance as of September 30, 2025 64,506 73,924 (1,902) 301,663 127,110 － Equity attributable to owners of parent Non- controlling interests Total Other components of equity Total Remeasure- ments of defined benefit plans Total Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Balance as of January 1, 2025 － 139,277 632,474 22,169 654,643 Profit (loss) － (43,983) (78) (44,061) Other comprehensive income 68 (11,888) (11,888) (161) (12,049) Total comprehensive income 68 (11,888) (55,871) (239) (56,111) Purchase of treasury shares － (1) (1) Disposal of treasury shares － 272 272 Dividends － (11,984) (1,781) (13,766) Change in ownership interest in subsidiaries － (16) 16 － Share-based payment transactions － 423 423 Transfer to retained earnings (68) (277) － － Other － 6 (58) (52) Total transactions with owners (68) (277) (11,299) (1,824) (13,123) Balance as of September 30, 2025 － 127,110 565,302 20,104 585,407
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17 (4) Condensed Quarterly Consolidated Statement of Cash Flows Nine months ended September 30, 2024 Nine months ended September 30, 2025 Millions of yen Millions of yen Cash flows from operating activities: Profit (loss) before tax 7,152 (32,518) Depreciation and amortization 56,702 53,306 Impairment losses (reversal of impairment losses) (208) 51,169 Loss (gain) on disposal of non-current assets 1,470 1,253 Increase (decrease) in retirement benefit asset or liability 1,136 680 Interest and dividend income (5,464) (5,446) Interest expenses 2,864 3,472 Share of profit of investments accounted for using equity method (1,986) (534) Decrease (increase) in trade receivables 4,415 7,340 Decrease (increase) in inventories (11,268) 8,981 Increase (decrease) in trade payables (32,430) (27,204) Increase (decrease) in liabilities for structural reform 17,118 2,296 Other 717 2,697 Subtotal 40,218 65,496 Interest and dividends received 5,914 1,823 Interest paid (2,009) (2,689) Income taxes paid (1,133) (3,092) Net cash provided by (used in) operating activities 42,990 61,537 Cash flows from investing activities: Payments into time deposits (23,398) (16,218) Proceeds from withdrawal of time deposits 20,825 17,840 Purchase of property, plant and equipment (17,012) (17,042) Proceeds from sales of property, plant and equipment and intangible assets 844 274 Purchase of intangible assets (19,696) (15,459) Payments for acquisition of subsidiaries (48,902) － Proceeds from sale of businesses 1,531 － Proceeds from sale of shares of associates 12,755 － Other 1,395 655 Net cash provided by (used in) investing activities (71,656) (29,949) Cash flows from financing activities: Net increase (decrease) in short-term borrowings and commercial papers 84,034 (28,878) Proceeds from long-term borrowings － 30,000 Repayments of long-term borrowings (30,000) － Redemption of bonds － (20,000) Purchase of treasury shares (1,047) (1) Proceeds from disposal of treasury shares 0 0 Dividends paid (23,759) (11,779) Dividends paid to non-controlling interests (1,960) (2,185) Repayments of lease liabilities (19,502) (17,591) Other (342) (414) Net cash provided by (used in) financing activities 7,422 (50,851) Net decrease in cash and cash equivalents (21,243) (19,264) Cash and cash equivalents at beginning of period 104,685 98,479 Effect of exchange rate changes on cash and cash equivalents 1,524 (1,054) Cash and cash equivalents at end of period 84,966 78,160
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18 (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements (Applicable Financial Reporting Framework) The Group’s condensed quarterly consolidated financial statements and notes are prepared in accordance with Article 5, Paragraph 2 of Tokyo Stock Exchange, Inc.’s standards for the preparation of quarterly financial statements, etc. (however, the omissions set out in Article 5, Paragraph 5 of the same standards apply). Some of the disclosure items and notes required by IAS 34 “Interim Financial Reporting” are omitted. (Note on Assumptions of a Going Concern) Not applicable. (Impairment test of Goodwill) The carrying amounts of major goodwill are allocated to each cash-generating unit, that is expected to benefit from the synergies of the combination and goodwill is tested for impairment in each fiscal year, and whenever there is any indication of impairment. Each operating segment is defined as a cash -generating unit and the recoverable amount of each operating segment cash-generating unit is determined at value in use, estimated primarily using discounted cash flows. Value in use is determined by discounting the estimated cash flows based on management-approved five-year business plans to the present value using a discount rate based on the weighted average cost of capital. Business plans reflect management assessments of future trends in the industry as well as past data, and are prepared using the mid -term growth rate, set based on both external and internal information, with factors including sales and profit margin ratio based on sales expansion plans, serving as the basis for calculation. For periods beyond the period covered by the business plan, the terminal value is calculated by discounting the projected pre-tax cash flows to present value using long-term market growth rate determined by taking into account the conditions in the country and industry to which the cash-generating unit belongs. (Cash-generating unit which shows an indication of impairment) In Americas Business, as there is an indication of impairment due to decline of its profitability, we have conducted the impairment test at the end of the first nine months of fiscal year 2025. As a result of the impairment test conducted as described above, since the recoverable amount is less than the carrying amount, impairment losses of ¥46,818 million has been recorded. The impairment losses recognized are included in “Impairment of goodwill” in the condensed quarterly consolidated statement of profit or loss. The carrying amount of goodwill allocated to the Americas Business cash-generating unit is as follows: As of December 31, 2024 As of September 30, 2025 Millions of yen Millions of yen Goodwill 58,420 8,786 The key assumptions used in the calculation of the recoverable amount of the Americas Business cash - generating unit are as follows: As of December 31, 2024 As of September 30, 2025 Discount rate: 10.9% 12.1% Mid-term growth rate: 5.2%~7.9% 4.9%~5.0% Long-term market growth rate: 2.1% 2.2% As there was no indication of impairment for other cash-generating units apart from the Americas Business,
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19 impairment test was not performed at the end of the first nine months of fiscal year 2025. (Segment Information, etc.) 1) Overview of Reportable Segments The Group’s operating segment is a component whose separate financial data is available and that is regularly reviewed by the management in order to make decisions on allocation of managerial resources and assess business performance. The Group’s main business is the manufacturing and sale of cosmetics and the Group has revised its reportable segment classifications from the “China Business” and the “Travel Retail Business” to the “China & Travel Retail Business” from the nine months e nded September 30, 2025. The Group engages in business activities under a matrix organization encompassing brand categories based on consumer purchasing style and five regions (Japan, China & Travel Retail, Asia Pacific, Americas, and EMEA). This matrix or ganization gives the leader in each region broad authority as well as responsibility for sales and profits to ensure flexible decision- making. In specific terms, the Group’s five reportable segments, which mainly refer to regions, are the “Japan Business,” “China & Travel Retail Business,” “Asia Pacific Business,” “Americas Business,” and “EMEA Business.” The “Japan Business” mainly comprises domestic business by brand category (Prestige, Fragrance, Premium, etc.) and the healthcare business (sale of health & beauty foods as well as over-the-counter drugs, etc.). The “China & Travel Retail Business” covers business in China and the operation of worldwide duty-free stores by brand category (Prestige, Fragrance, Cosmetics, etc.). The “Asia Pacific Business” covers business in the Asia and Oceania regions excluding Japan and China by brand category (Prestige, Fragrance, Cosmetics, etc.). The “Americas Business” covers business in the Americas region by brand category (Prestige, Fragrance, etc.). The “EMEA Business” covers business in Europe, the Middle East and Africa regions by brand category (Prestige, Fragrance, etc.). The “Other” includes the restaurant business, etc. (Changes of reportable segments, etc.) The Group has revised its reportable segment classifications from the nine months ended September, 2025. The reportable segment changed from the “China Business” and the “Travel Retail Business” to the “China & Travel Retail Business” due to change in org anizational and managerial structures. The business results related to the operation of domestic sales by IPSA Co., Ltd. and the operation of sales of health & beauty foods, etc. by healthcare business previously included in the “Other” is now included in the “Japan Business.” Segment information for the nine months ended September 30, 2024 has been restated to reflect the reclassification. 2) Method to determine sales and profit (loss) by reportable segment Profit by reportable segments is stated on the basis of core operating profit, which is operating profit (loss) calculated by excluding profits or losses incurred by non- ordinary factors (non -recurring items) such as costs and expenses related to structural reforms, impairment losses, acquisitions, etc. Intersegment transaction pricing and transfer pricing are determined based on prevailing market prices. (Changes in calculation methods of profit or loss of reportable segments) From the nine months ended September 30, 2025, in order to have better grasp on profitability of each segment, the impacts of intersegment sales and cost of sales which have been adjusted previously according to Shiseido’s transfer pricing policy and a pa rt of expenses incurred by head office administration departments (head office expenses) previously reallocated to operating segments are excluded, and the expenses incurred by the brand holders (Note) which have been previously recognized mainly in the “O ther” and the “EMEA Business” are reallocated to each segment according to the sales composition of each brand. Segment information for the nine months ended September 30, 2024 has been restated to reflect these changes. Note: Expenses related to global marketing strategy planning, product development, communication and creative development, brand business management functions, etc.
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20 3) Segment Revenue and Business Result Revenue and business results by reportable segment of the Group are as follows. Nine Months Ended September 30, 2024 (From January 1, 2024 to September 30, 2024) (Millions of yen) Reportable Segment Japan Business China & Travel Retail Business Asia Pacific Business Americas Business EMEA Business (Note 1) Net sales Sales to external customers 218,795 259,656 53,249 87,203 91,559 Intersegment sales or transfer 600 2,646 735 4,661 2,759 Total 219,395 262,302 53,985 91,865 94,319 Segment profit (loss) i.e. Core operating profit 16,240 49,577 2,534 (3,626) 759 Other (Note 2) Total Adjustments (Note 3) Consolidation Net sales Sales to external customers 12,290 722,754 － 722,754 Intersegment sales or transfer 1,347 12,751 (12,751) － Total 13,637 735,506 (12,751) 722,754 Segment profit (loss) i.e. Core operating profit 110 65,595 (38,180) 27,415 Note: 1. The “EMEA Business” includes the Middle East and Africa regions. 2. The “Other” includes the restaurant business, etc. 3. The “Adjustments” in core operating profit (loss) primarily reflects the head office expenses that are not allocated to each operating segment (¥(50,405) million), the difference between the allocation amount to each operating segment and the actual amount (¥3,435 million) and cost difference (¥5,914 million), etc. The head office expenses which were included in the “Other,” are included in the “Adjustments” from the nine months ended September 30, 2025. The expenses are incurred mainly by head office, R&D, etc. The amounts have been restated to reflect these changes.
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21 Nine Months Ended September 30, 2025 (From January 1, 2025 to September 30, 2025) (Millions of yen) Reportable Segment Japan Business China & Travel Retail Business Asia Pacific Business Americas Business EMEA Business (Note 1) Net sales Sales to external customers 219,105 240,036 52,504 78,187 96,121 Intersegment sales or transfer 979 2,268 910 3,366 4,016 Total 220,085 242,304 53,415 81,553 100,137 Segment profit (loss) i.e. Core operating profit 27,928 46,676 1,758 (7,586) 915 Other (Note 2) Total Adjustments (Note 3) Consolidation Net sales Sales to external customers 7,861 693,817 － 693,817 Intersegment sales or transfer 1,592 13,133 (13,133) － Total 9,454 706,950 (13,133) 693,817 Segment profit (loss) i.e. Core operating profit (1,421) 68,271 (38,191) 30,080 Note: 1. The “EMEA Business” includes the Middle East and Africa regions. 2. The “Other” includes the restaurant business, etc. 3. The “Adjustments” in core operating profit (loss) primarily reflects the head office expenses that are not allocated to each operating segment (¥(48,343) million), the difference between the allocation amount to each operating segment and the actual amount (¥5,422 million) and cost difference (¥5,124 million), etc. The expenses are incurred mainly by head office, R&D, etc.
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22 Adjustments from segment profit to operating profit (loss) as follows: Nine months ended September 30, 2024 Nine months ended September 30, 2025 Millions of yen Millions of yen Segment profit 27,415 30,080 Structural reform expenses (23,302) (10,755) Impairment losses (70) (51,409) Reversal of impairment losses 278 239 Gain on sale of non-current assets 694 － Acquisition-related costs (294) (8) One-time costs related to internal system changes (1,264) (18) Other (1,273) (1,478) Operating profit (loss) 2,183 (33,350) “Structural reform expenses” for the nine months ended September 30, 2024 are mainly the costs associated with the Early Retirement Incentive Plan as part of the business transformation of Shiseido Japan Co., Ltd. The expenses are included in “Cost of sal es”, “Selling, general and administrative expenses” and “Other operating expenses” in the condensed quarterly consolidated statement of profit or loss. “Structural reform expenses” for the nine months ended September 30 , 2025 are mainly the costs associated with the “Action Plan 2025-2026” such as the costs for workforce reductions in Americas Business and a provision for an onerous contract. The expenses are included in “Cost of sales”, “Selling, general and administrative expenses” and “Other operating expenses” in the condensed quarterly consolidated statement of profit or loss. “Impairment losses” for the nine months ended September 30, 2025 are mainly the impairment losses of goodwill and the impairment losses due to decline in profitability of offices subleased by Shiseido Americas Corp, etc. The expenses are included in “Cost of sales”, “Selling, general and administrative expenses” and “Impairment of goodwill” in the condensed quarterly consolidated statement of profit or loss. “Gain on sale of non- current assets” for the nine months ended September 30, 2024 is mainly the income arising from the sales of the real estate owned by its subsidiary. The income is included in “Other operating income” in the condensed quarterly consolidated statement of profit or loss. “Acquisition-related costs” for the nine months ended September 30, 2024 and 2025 are the direct costs associated with the acquisition of DDG Skincare Holdings LLC. The expenses are included in “Selling, general and administrative expenses” in the condensed quarterly consolidated statement of profit or loss. “One-time costs related to internal system changes” for the nine months ended September 30, 2024 and 2025 are included in “Selling, general and administrative expenses” in the condensed quarterly consolidated statement of profit or loss.
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23 (Significant Subsequent Events) The Company adopted a resolution at the Board of Directors on November 10 to implement Early Retirement Program “Next Career Support Plan ” (the “Program”) offered to employees of the Company and certain of its domestic subsidiaries to which part of the headquarters functions have been transferred. 1. Purpose The Company is in the midst of rebuilding the foundations of its business under the “Action Plan 2025- 2026” (“the Action Plan”) launched in November last year, with an aim to ensure solid profit recovery and sustainable growth over the medium - to long-term by accelerating its structural transformation. Under the Action Plan, the Company is pursuing the three primary objectives; “reinforce brand foundation”, “rebuild profitable foundation” and “enhance operational governance” with an aim of establishing a resilient business model that can drive sustainable profitable growth amid volatile market conditions. As part of these efforts, the Company has been implementing structural reforms primarily in the Japan, China & Travel Retail, and Americas Businesses. To complete the execution of the Action Plan globally and to rebuild a profitable foundation to drive sustainable investment in our people, brands, and innovation, the Board has made a decision to implement the Program offered to the employees of the Company, the global headquarters (“GHQ”) of the Shiseido Group, as well as certain of its domestic subsidiaries to which part of the headquarters functions have been transferred. Going forward, to realize the vision towards growth laid out in the “2030 Medium-Term Strategy” announced on November 10, the Company will strive to enhance its global operational framework. As part of that process, the GHQ will be committed to strengthening its functions as an organization held responsible for formulating company-wide strategies while supporting the execution of regional strategies. To that end, the Company will also focus its efforts on fostering people with capabilities and leadership to drive growth across the entire group. This program is intended to support employees who choose to pursue external career opportunities, helping them achieve self-fulfillment in a new environment. 2. Overview （1）Eligible employees Employees of Shiseido Company, Limited and certain of its domestic subsidiaries who meet certain age and length of employment requirements （2）Estimated number of applicants Approx. 200 （3）Application period December 8, 2025 to December 26, 2025 （4）Applicants’ date of retirement March 31, 2026 （5）Support plan and benefits 1) Special additional benefits based on the retirement age added to the regular retirement allowance 2) Career transition support to those who wish to use it 3. Expected impact on earnings The one-time costs incurred by the Program are expected to be approximately ¥3.0 billion and will be recognized as non-recurring items* in the consolidated financial results for the forth quarter of fiscal year ending December 31, 2025. * Expenses associated with structural reforms, impairment losses, etc.
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24 Independent Auditor’s Report on Review of Condensed Quarterly Consolidated Financial Statements November 10, 2025 To the Board of Directors of Shiseido Company, Limited: KPMG AZSA LLC Tokyo Office, Japan Masakazu Hattori Designated Limited Liability Partner Engagement Partner Certified Public Accountant Kentaro Hayashi Designated Limited Liability Partner Engagement Partner Certified Public Accountant Yuki Kodaka Designated Limited Liability Partner Engagement Partner Certified Public Accountant Conclusion We have reviewed the accompanying condensed quarterly consolidated financial statements of Shiseido Company, Limited (“the Company”) and its consolidated subsidiaries (collectively referred to as “the Group”) provided in the “Attached Documents” in the Consolidated Settlement of Accounts for the Nine Months Ended September 30, 2025, which comprise the condensed quarterly consolidated statement of financial position as at September 30, 2025, the condensed quarterly consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the nine -month period then ended, and notes concerning the condensed quarterly consolidated financial statements. Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed quarterly consolidated financial statements are not prepared, in all material respects, in accordance with Article 5(2)of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (“the Standard”) (applying the omissions prescribed in Article 5(5) of the Standard). Basis for Conclusion We conducted our review in accordance with interim review standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor’ s Responsibilities for the Review of the Condensed Quarterly Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements in Japan (including those that are relevant to audits of the
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25 financial statements of public interest entities), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Responsibilities of Management and the Audit Committee for the Condensed Quarterly Consolidated Financial Statements Management is responsible for the preparation and presentation of the condensed quarterly consolidated financial statements in accordance with Article 5(2) of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (applying the omissions prescribed in Article 5(5) of the Standard), and for such internal control as management determines is necessary to enable the preparation of the condensed quarterly consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the condensed quarterly consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance with Article 5(2) of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (applying the omissions prescribed in Article 5(5) of the Standard) and using the going concern basis of accounting unless management either intends to liquidate th e Group or to cease operations, or has no realistic alternative but to do so. The Audit Committee are responsible for overseeing the corporate executive officers’ and the directors’ performance of their duties with regard to the design, implementation and maintenance of the Group’s financial reporting process. Auditor’s Responsibilities for the Review of the Condensed Quarterly Consolidated Financial Statements Our responsibility is to express a conclusion on these condensed quarterly consolidated financial statements based on our review in our report on the review of condensed quarterly consolidated financial statements. As part of our review in accordance with interim review standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the review. We also: ・Make inquiries, primarily of management and persons responsible for financial and accounting matters, and apply analytical and other review procedures. An interim review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in Japan. ・Conclude, based on the evidence obtained, that nothing has come to our attention that causes us to believe that the condensed quarterly consolidated financial statements are not prepared in accordance with Article 5(2) of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (applying the omissions prescribed in Article 5(5) of the Standard), if a material uncertainty relating to events or conditions comes to our attention that may cast significant doubt on the Group’s ab ility to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report on the review of condensed quarterly consolidated financial statements to the related disclosures in the condensed quarterly consolidated financial statements or, if such disclosures are inadequate, to express a qualified conclusion or an adverse conclusion. Our conclusions are based on the evidence obtained up to the date of our report on the review of condensed quarterly consolidated financial statements; however, future events or conditions may cause the Group to cease to continue as a going concern. ・Evaluate that nothing has come to our attention that causes us to believe that the presentation and disclosures in the condensed quarterly consolidated financial statements are not prepared in accordance withArticle 5(2)
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26 of Standard for Preparation of Quarterly Financial Statements of Tokyo Stock Exchange, Inc. (applying the omissions prescribed in Article 5(5) of the Standard). ・Obtain sufficient appropriate evidence regarding the financial information of the entities or business activities within the Group as a basis for forming a conclusion on the condensed quarterly consolidated financial statements. We are responsible for the direction, supervision and review of the interim review on the condensed quarterly consolidated financial statements. We remain solely responsible for our review conclusion. We communicate with the Audit Committee regarding, the planned scope and timing of the review, significant review findings that we identify during our review. We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. Interest required to be disclosed by the Certified Public Accountants Act of Japan We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan. Notes to the Reader of Review Report: The Independent Auditor’s Report herein is the English translation of the Independent Auditor’s Report on Review of Condensed Quarterly Consolidated Financial Statements as required by the Securities Listing Regulations of the Tokyo Stock Exchange, Inc