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February 10, 2026 Shiseido Company, Limited Kentaro Fujiwara President and CEO Ayako Hirofuji CFO 2025 Results (January—December) and 2026 Outlook
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In this document, statements other than historical facts are forward-looking statements that reflect our plans and expectations. These forward-looking statements involve risks, uncertainties, and other factors that may cause actual results and achievements to differ from those anticipated in these statements.
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⚫ Core OP: ¥44.5 bn; Core OP Margin: 4.6% ➢ Realized tangible results through enhanced financial discipline, driving structural reforms and cost efficiencies despite a YoY sales decline ➢ Delivered profit well above the initial target of ¥36.5 bn ⚫ Free Cash Flow of ¥66.5 bn ➢ Boosted by working capital improvement and CAPEX optimization ⚫ Net Sales: largely in line with estimates, regaining momentum in 2H ➢ Key brands delivered +4% net sales (LfL*) growth in 2H ➢ Market share gains in Japan local, China, and Asia Pacific ➢ Americas faced continued challenges in Q4, whereas China & Travel Retail sustained their recovery momentum ⚫ 2026 Targets: Core OP Margin 7%; ROIC 5%; ROE 7%; Free Cash Flow ¥50.0 bn ➢ Accelerate sales and profit growth fueled by new product launches featuring cutting-edge innovations, driving significant improvement in financial KPIs ➢ 2026: Plan to increase the annual dividend to ¥60 per share, up from ¥40 in 2025 2025 Results and 2026 Outlook: Key Highlights Achieved strong earnings recovery with sound financial position; Our initiatives bearing fruit, improving capital efficiency 3 * Like-for-like increase (decrease) in net sales excludes the impacts of foreign exchange translation and all business transfers i n 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 2024 and its corresponding period in 2025 (“business transfers and acquisitions”) YoY change (%) in LfL net sales for Key brands (Core 3 and Next 5 brands) is calculated based on foreign exchange rate assumptions at the beginning of each fiscal year which excludes impacts from FX fluctuations and other
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4 Unwavering commitment to 7% Core OP margin target; Sharpen focus on improving FCF and capital efficiency; Increase dividends to enhance shareholder returns 4 2025 2026 % of Net Sales YoY Change YoY Change % YoY FX-Neutral % YoY LfL*1% Net Sales 970.0 990.0 100% +20.0 +2% +2% +3% Core Operating Profit 44.5 69.0 7.0% +24.5 +55% Non-recurring Items −73.3 −10.0 −1.0% +63.3 - Operating Profit −28.8 59.0 6.0% +87.8 - Profit (Loss) before Tax −27.7 60.0 6.1% +87.7 - Profit (Loss) Attributable to Owners of Parent −40.7 42.0 4.2% +82.7 - EBITDA*2 95.2 119.0 12.0% +23.8 +25% Free Cash Flow 66.5 50.0 5.1% −16.5 −25% ROIC*3 −2.0% 5% ROE −6.6% 7% Dividend (yen/per share) (Forecast) 40 Interim: 20 Year-end: 20 60 Interim: 30 Year-end: 30 (Billion yen) Non-recurring Items: −¥10.0 bn ⚫ Production/logistics and office optimization ⚫ Other structural reforms Exchange rates for 2025: USD/JPY: 149.7 EUR /JPY: 169.0 CNY/JPY: 20.8 Assumed Exchange rates for 2026: USD/JPY: 150 (+0.2% YoY) EUR /JPY: 170 (+0.6%) CNY/JPY: 20.5 (−1.5%) 2026 Forecast *1 Excluding the impacts of foreign exchange translation, and business transfer *2 Core Operating Profit + Depreciation and Amortization (excl. depreciation of right-of-use assets) *3 The statutory tax rate is used for 2025 calculation
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2025 Contribution margin & price increases Structural reform benefits Inflation, etc. 2026 44.5 69.0 Risks and Opportunities: ⊕Maximize sales by strategic investment ⊕Agile cost management FX impact COGS: 7.0 Marketing investment: 1.0 Personnel expenses: 8.0 Other expenses: 9.0 +25.0 Core OP margin 7% ⊖Deterioration in market conditions, competition in Americas ⊖Other geopolitical risks 2026 Core OP Forecast (Billion yen) ± ⊖Prolonged Japan–China tensions; Impacts reflected only through Q1 in the current plan Pursue growth through targeted investments even in times of uncertainty; Deliver on our targets, underpinned by structural reform gains and firm financial discipline 5
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Other −33.0 CAPEX −44.4 −40.0 104.7 48.4 98.5 109.9 −50.7 % of Net Sales 4.6% −73.1 91.8 29.1 67.01.0 13.6 FCF excl. acquisition costs*1 −35.3 50.0 66.5 FCF Driving Stronger Cash Generation *1 Cash out flows of ¥48.9 bn associated with the acquisition of Dr. Dennis Gross Skincare *2 Cash out flows of approx. ¥17.0 bn associated with the acquisition of Dr. Dennis Gross Skincare % of Net Sales 5.1% 2024 2025 2026 (Billion yen) Balance at the beginning of 2024 Balance at the end of 2024 FCF excl. acquisition costs*2 % of Net Sales 4.0% Operating CF Investing CF FCF FCF excl. acquisition costs Financing CF +FX adj. FCF improvement driven by higher profitability and efficiency in WC and CAPEX 6 Balance at the end of 2025 Investing CF FCF Financing CF +FX adj. Balance at the end of 2026 Investing CF FCF FCF excl. acquisition costs Financing CF +FX adj. Operating CF Operating CF
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30 20 20 25 30 30 20 30 30 20 30 25 30 10 20 30 2019 2020 2021 2022 2023 2024 2025 2026 40 (Plan) (Plan) 40 40 60 5.1 3.3 4.0 3.5 3.9 2.6 2.6 50 60 50 60 100 7.0 (Plan) Dividend/share ■Year-end (yen) ■Interim (yen) DOE(%) (Excl. Commemorative Dividend) Dividend Commemorative Dividend 3.9 Enhance shareholder returns on the back of a reinforced profit model built through structural reforms, with a planned dividend increase in 2026; Ensure sustainable shareholder returns based on strong cash flow projections 7
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Our Initiatives to Yield Tangible Results; Set to Drive Significant Improvement in Capital Efficiency ⚫ Pursue growth and cost optimization to deliver a Core OP margin of 10% or more by 2030 ⚫ Boost capital efficiency ➢ Asset-light: sale, lease termination, relocation of real estate properties, asset monetization ➢ Pursue operational excellence ⚫ Embed ROIC management culture across the organization ➢ Long-term incentive-type remuneration: ROIC-based indicators for executives and eligible employees ➢ Annual Incentive: Implementation of ROIC-linked operational KPIs for executive evaluations underway * The statutory tax rate is used for 2024 and 2025 calculation ROE 2024 2025 2026 7% −1.7% −6.6% ROIC* 0.6% 5% 2024 2025 2026 −2.0% 8
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(Billion yen) 2024 % of Net Sales 2025 % of Net Sales YoY Change YoY Change % YoY FX-Neutral % YoY LfL*1 % Net Sales 990.6 100% 970.0 100% −20.6 −2% −2% −2% Core Operating Profit 36.4 3.7% 44.5 4.6% +8.2 +22% Non-recurring Items −28.8 −2.9% −73.3 −7.6% −44.5 - Operating Profit (Loss) 7.6 0.8% −28.8 −3.0% −36.4 - Profit (Loss) before Tax −1.3 −0.1% −27.7 −2.9% −26.4 - Income Tax Expense 8.0 0.8% 12.0 1.2% +4.0 +50% Profit (Loss) Attributable to Owners of Parent −10.8 −1.1% −40.7 −4.2% −29.9 - EBITDA*2 89.6 9.0% 95.2 9.8% +5.7 +6% Free Cash Flow −35.3 −3.6% 66.5 6.9% +101.8 - 9 YoY (LfL*1) −2% YoY revenue decline driven by China & Travel Retail and Drunk Elephant YoY change +¥8.2 bn Lifted by structural reform benefits and tighter group-wide cost management 2025 −¥73.3 bn −¥3.1 bn incurred by the early retirement program at the global HQ, −¥46.8 bn goodwill impairment loss in the Americas Business, cost of structural reforms, etc. YoY change +¥101.8 bn Higher profitability / working capital and CAPEX optimization, etc. 2024 FCF impacted by cash outflow associated with the acquisition Net Sales: Non-recurring Items: Free Cash Flow : Core Operating Profit: *1 Excluding the impacts of foreign exchange translation, business transfers and acquisitions *2 Core Operating Profit + Depreciation and Amortization (excl. depreciation of right-of-use assets) 2025 Executive Summary
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(Excluding Non-recurring Items) (Billion yen) 2024 ％ of Net Sales 2025 ％ of Net Sales YoY Change YoY % Pts Difference Net Sales 990.6 100.0% 970.0 100% −20.6 −2.1% - COGS 236.4 23.9% 225.6 23.3% −10.9 −4.6% −0.6pts Gross Profit 754.2 76.1% 744.4 76.7% −9.7 −1.3% ＋0.6pts SG＆A 723.3 73.0% 702.9 72.5% −20.4 −2.8% −0.6pts Marketing investments 283.3 28.6% 284.0 29.3% +0.6 ＋0.2% ＋0.7pts Brand development / R&D 38.6 3.9% 37.1 3.8% −1.5 −3.9% −0.1pts Personnel expenses* 227.7 23.0% 216.7 22.3% −11.0 −4.8% −0.6pts Other SG&A 173.7 17.5% 165.2 17.0% −8.5 −4.9% −0.5pts Other Operating Income / Expenses 5.5 0.6% 3.0 0.3% −2.5 −45.5% −0.2pts Core Operating Profit 36.4 3.7% 44.5 4.6% ＋8.2 ＋22.4% ＋0.9pts COGS ratio improved with brand / product mix improvement, lower allowance for excess inventory write-offs, etc. Continued investing in key brands via selection and concentration Lowered by structural reform benefits in Japan, China & Travel Retail and Americas offsetting an increase in bonus provision Core Operating Profit: Reinvest Fixed-cost Savings to Accelerate Growth 10 COGS： Marketing investments： Personnel expenses*： * Including POS personnel expenses Reduced by the structural reforms, agile cost management, etc. Other SG&A：
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Net Sales YoY by Region: Stronger 2H Momentum, while Q4 Challenges Remained in Americas 11 2024 (vs. 2023) 2025 (vs. 2024)Like-for-like*1 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Japan +20% +7% +5% +7% +10% −2% +2% +2% +2% +1% China & Travel Retail*2 −14% −11% −23% +2% −11% −14% −7% +8% +2% −3% Asia Pacific +5% +7% +2% −3% +2% −1% −0% −2% +9% +2% Americas +9% −20% −9% −7% −7% −19% +4% −9% −10% −9% EMEA +17% +6% −7% +16% +8% −9% +2% +22% +1% +3% Total +3% −4% −8% +4% −1% −9% −3% +4% +1% −2% *1 Excluding the impacts of foreign exchange translation, business transfers and acquisitions *2 To adopt an integrated approach to Chinese consumers and to maximize value creation, the Company implemented changes to its organizational structure as of March 31, 2025, along with change to its reportable segment which have been reflected in 2025
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+M-teen% −LSD% +MSD% +HSD% −MSD% +MSD% +HSD% SHISEIDO Clé de Peau Beauté NARS ELIXIR ANESSA d program MAQuillAGE Net Sales by Brand*1 12*1 Excluding the impact of business transfers *2 SHISEIDO, Clé de Peau Beauté, NARS, ELIXIR, ANESSA, d program, MAQuillAGE Japan: Key Brands Delivered Strong Growth, Driven by Our Innovation Strategies, and Improved Profitability Significantly Q4 Market • Local: Modest growth continued • Inbound: Visitor numbers kept rising, despite lower Chinese travelers; Growth softened as department store declines persisted Q4 Consumer Purchases • +LSD%; local core brands*2 drove growth, expanding share gains - Local: +LSD% EC: +H-teen% New products from SHISEIDO and ELIXIR maintained momentum - Inbound: −HSD% Domestic-overseas price gap narrowed amid intensified price competition in China ELIXIR and IHADA benefitted from digital strategy targeting tourists Q4 YTD Net Sales & Core Operating Profit • Higher gross-margin driven by brand & SKUs optimization • Strong profit gains driven by structural reforms and higher productivity ELIXIRSHISEIDO Key Brand Net Sales Composition ■ Q4 YTD 2024 ■ Q4 YTD 2025 (Billion yen) FY2024 FY2025 YoY Change YoY % Net Sales 294.3 295.3 +1.1 +0.7%*1 Core OP 25.9 39.0 +13.1 +50.6% Core OPM 8.8% 13.1% - +4.4pts
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−MSD% +MSD% +HSD% −L-teen% SHISEIDO Clé de Peau Beauté NARS ANESSA 13 China & Travel Retail: Continued Recovery with China Share Gains and Growth Driven by Clé de Peau Beauté and NARS; Fixed-cost Reduced via Structural Reforms * Excluding the impacts of foreign exchange translation and business transfers (Billion yen) FY2024 FY2025 YoY Change YoY % Net Sales 357.8 342.2 ー15.5 ー3.5%* Core OP 72.0 64.5 ー7.5 ー10.4% Core OPM 19.9% 18.7% - ー1.2pts Net Sales by Brand* ■ Q4 YTD 2024 ■ Q4 YTD 2025 Q4 Market • China: delivered growth led by prestige, although fierce price competition continued during Double 11 • Travel Retail: Hainan Island returned to a recovery trend, but continued to be weighed down by subdued consumer spending overall Q4 Consumer Purchases • China: +LSD% Offline: −LSD％ EC: +MSD% - Achieved above market growth during Double 11, lifted primarily by the strength of key brands - Clé de Peau Beauté and NARS continued strong growth with SHISEIDO returning to growth - Mainland China delivered YoY growth in both Q4 and full-year • Travel Retail: −M teen％ - YoY decline narrowed, continued tight inventory management Q4 YTD Net Sales & Core Operating Profit • Net sales exceeded the initial target albeit YoY decline • Strengthened marketing investments amid fierce market competition • YoY profit decline was partly offset by fixed-cost reductions and cost discipline Key Brand Net Sales Composition
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+LSD% +HSD% −HSD% −over 30% −HSD% SHISEIDO Clé de Peau Beauté NARS Drunk Elephant Dr. Dennis Gross Skincare 14*1 Excluding the impacts of foreign exchange translation, business transfers and acquisitions *2 Prestige market *3 Data coverage: U.S. and Canada (Billion yen) FY2024 FY2025 YoY Change YoY % Net Sales 118.5 106.6 ー12.0 ー9.5%*1 Core OP ー9.2 ー11.6 ー2.3 - Core OPM ー7.4% ー10.4% - ー3.0pts Americas: Profit Decline Mitigated by Structural Reforms and Cost Management Net Sales by Brand*1 ■ Q4 YTD 2024 ■ Q4 YTD 2025 Q4 Market*2 • Maintained YoY growth, albeit lower-than-expected Q4 Consumer Purchases*3 • −HSD％ - Drunk Elephant : YoY decline continued - Dr. Dennis Gross Skincare : faced challenges amid fierce market competition Q4 YTD Net Sales & Core Operating Profit • Restructuring benefits: reduced personnel cost and other SG&A • Stronger cost discipline partially offset the negative impact from lower sales, tariff and higher COGS due to lower Drunk Elephant production Key Brand Net Sales Composition
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+LSD% +L-teen% +MSD% −LSD% SHISEIDO Clé de Peau Beauté NARS ANESSA Q4 Market*2 • Contraction in Taiwan continued, but returned to growth across other countries and regions in Southeast Asia Q4 Consumer Purchases*3 • +MSD%, momentum fueled by new products from key brands Q4 YTD Net Sales & Core Operating Profit • YoY profit increase driven by higher gross profit from sales growth EMEAAsia Pacific Asia Pacific: Market Returned to Growth, with Our Innovation Driving Share Gains EMEA: Fragrances Continued Strong Growth, Contributing to Steady Profit Gains *1 Excluding the impacts of foreign exchange translation and business transfers *2 Prestige market *3 Data coverage: 10 countries and regions in the Asia and Oceania regions including Taiwan, South Korea and Thailand *4 Data coverage: France, UK, Germany, Italy and Spain Net Sales by Brand*1Net Sales by Brand*1 15 Key Brand Net Sales Composition Key Brand Net Sales Composition Q4 Market*2 • Modest growth continued Q4 Consumer Purchases*4 • LSD% with Zadig&Voltaire and newly launched “The Multiple” from NARS performing strongly Q4 YTD Net Sales & Core Operating Profit • YoY profit increase driven by higher gross profit from sales growth ■ Q4 YTD 2024 ■ Q4 YTD 2025■ Q4 YTD 2024 ■ Q4 YTD 2025 (Billion yen) FY2024 FY2025 YoY Change YoY % Net Sales 71.7 73.3 +1.6 +1.8%*1 Core OP 4.9 5.1 +0.2 +3.6% Core OPM 6.7% 6.8% - +0.1pts (Billion yen) FY2024 FY2025 YoY Change YoY % Net Sales 132.7 141.1 +8.5 +3.2%*1 Core OP 2.7 3.9 +1.3 +48.5% Core OPM 1.9% 2.7% - +0.8pts −LSD% +H-teen% +L-teen% −over 50% +HSD% −LSD% +over 40% SHISEIDO Clé de Peau Beauté NARS Drunk Elephant narciso rodriguez ISSEY MIYAKE PARFUMS Zadig&Voltaire
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2025 2026 COGS • Selection and concentration of brands and SKUs, strategic price increases • Improve factory production line efficiency, etc. 4.0 7.0 Marketing investments • Optimize promotional costs, increase marketing ROI • Expand local production and operational efficiency of samples 2.0 1.0 Personnel expenses • Optimize organization structure, improve productivity • Streamline corporate functions to enhance operational efficiency, etc. 15.0 8.0 Other SG&A • Reduce outsourcing cost • Reduce depreciation: system optimization and integration, selective new investments • Other cost savings: logistics optimization, efficient office management, etc. 6.0 9.0 Total 27.0 25.0+ (Billion yen) 16 2025 27.0 2026 25.0+ Japan China Other than the above Americas Global HQ 2025: Realized ¥27.0bn cost reduction benefits ahead of the target; 2026: on track to achieve ¥25.0bn benefits with all actions completed in 2025 Progress on Structural Reforms and Global Cost Reduction
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Driving Sustainable Growth and Corporate Value February 10, 2026 Shiseido Company, Limited Kentaro Fujiwara President and CEO
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Delivering Stable Profit Growth Enabled by Diversified Regional Footprint 18 2021 2023 2025 % of Sales* Japan +6pts Americas / EMEA / Asia Pacific +7pts * 2025 vs. 2021, excluding the impact of FX and business transfers China & Travel Retail Japan Americas EMEA Asia Pacific
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Creating a Virtuous Growth Cycle through Targeted Investment in High-profit Brands 19 2021 2023 2025 % of Sales from Core + Next brands*1 +9pts*2 *1 Core: SHISEIDO, Clé de Peau Beauté, NARS Next: ELIXIR, ANESSA, narciso rodriguez, ISSEY MIYAKE PARFUMS, Zadig&Voltaire, Dr. Dennis Gross Skincare *2 2025 vs. 2021, excluding the impacts of FX and business transfers Core Next Others 68% 77%
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Transforming into Lean Organization; Boosting Productivity for Stronger Competitiveness 20 Net Sales : # of employees: 2021 2023 2025 28.6 31.9 36.8 Net Sales per Employee (million yen) ¥1,010.0 bn 35,318 ¥973.0 bn 30,540 ¥970.0 bn 26,330 Net Sales per Employee Approx.+30%* End of Year * 2025 vs. 2021
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21 ⚫ Domestic assets*1 2021 2025 ¥140 bn+ ¥130 bn+ ⚫ Optimizing foreign assets ➢ China: Consolidation of China R&D Sites ➢ Asia Pacific: Closure of Innovation Center ➢ Americas: Office space reduction at regional headquarter, sub-leasing ➢ EMEA: Relocation of regional headquarter *1 Global HQ (Shiseido Company, Limited)+Shiseido Japan Co., Ltd., land+buildings *2 2025 vs. 2021 Approx. −10%*2 Asset-Light Model Geared to Higher Operating Efficiency: Steadfast Progress on ROIC Improvement
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2026: Ensuring Solid Growth by Leveraging a Resilient Brand Portfolio 22 ⚫ Core brands ➢ Continuously enhancing global hero products and product lines ➢ Maximizing brand communication driven by global ambassadors ➢ Capturing growth opportunities with strategies tailored to market structures ⚫ Next brands ➢ Strengthening investment in focus categories and creating new value ➢ Selecting and concentrating on key sales channels ⚫ Drunk Elephant ➢ Completing the brand turnaround 2025 2026 Core*1 Next*2 Others +LSD% +HSD% *1 Core: SHISEIDO, Clé de Peau Beauté, NARS *2 Next: ELIXIR, ANESSA, narciso rodriguez, ISSEY MIYAKE PARFUMS, Zadig&Voltaire, Max Mara, Dr. Dennis Gross Skincare
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23 ⚫ Japan: outperforming the market with strong double-digit growth and significant new consumer acquisition ⚫ Return to positive in 2H in China & TR ⚫ Global launch of the new ULTIMUNE 2025 Net Sales: Flattish (2H: +3%) 2026 Net Sales Forecast: +LSD% Core Brand – SHISEIDO : Re-accelerating as a Global Growth Engine ⚫ Global: Drive sustainable growth by strengthening brand equity and scaling global hero franchises ⚫ Reinforce next-generation consumer engagement driven by a new global ambassador ⚫ Region-specific: Unlock incremental growth through Suncare, Makeup
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24 2025 Net Sales: +4% (2H: +6%) 2026 Net Sales Forecast: +LSD% ⚫ China & TR, Asia Pacific, EMEA delivered double-digit growth in 2H ⚫ Core skin care line Key Radiance Care renewal ⚫ Build brand equity as a science-driven luxury brand ⚫ Reinforce the image of luxury with a new global ambassador ⚫ Elevate brand equity with advanced technology products Core Brand – Clé de Peau Beauté : Creating Enduring Value of Luxury
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25 2025 Net Sales: +3% (2H: +4%) 2026 Net Sales Forecast: +LSD% ⚫ Double-digit growth in 2H across China & TR and EMEA ⚫ Captured strong demand in the cheek category through The Multiple ⚫ Expanded growth driven by the hero franchise Light Reflecting and concealer category ⚫ Reinforce leadership in the complexion category globally through the major launch of Natural Matte Longwear Foundation ⚫ Expand audiences and boost engagement with a new global ambassador ⚫ Optimize channel selection, maximize relationships with key retailers Core Brand – NARS : Leveraging Creativity to Drive Growth
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Next Brand – ELIXIR : Expanding Its Reach as the Next Growth Driver in Asia 26 2025 Net Sales: +9% (2H: +6%) 2026 Net Sales Forecast: +MSD% ⚫ Drove strong growth across all regions Asia Pacific: +over 30%, China & TR: Double-digit growth with signs of bottom out ⚫ Profitability boosted by hero SKUs ⚫ Enrich collagen science ⚫ Nurture hero SKUs: Relaunch brightening lotion & emulsion, new color from Day Care Revolution Tone Up ⚫ Further growth via expansion of open-sell retail channels overseas
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Next Brand – ANESSA : Creating New Growth Opportunities via Category Expansion 27 2025 Net Sales: −9% (2H: +6%) 2026 Net Sales Forecast: +HSD% ⚫ China & TR headwinds in 1H, but returned to growth in 2H ⚫ Drove strong sales well ahead of the target with exclusive launch of Brush-on Powder Sunscreen ⚫ Unveiled a daily-use series designed for everyday situations; strong UV protection, high-performing skin care with seamless texture; offering mini-sized items in mass price tier ⚫ Expand target audience by the launch of men’s UV gel ⚫ Rollout of Brush-on Powder nationwide in Japan
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Next Brands – Fragrance Brands, Dr. Dennis Gross Skincare 28 ⚫ Intensifying competition in the hero product, Peels and Masks ⚫ Declining conversion rates in e-commerce ⚫ Prioritize investment in Peels and Masks to defend category leadership ⚫ Drive high-impact activations with Sephora via a 360°campaign and birthday gift partnership ⚫ Allocate resources on fewer, priority growth product launches ⚫ Elevate clinical brand image and create consistency worldwide 2025 Net Sales: −8%*4 (2H: −15%) 2026 Net Sales Forecast: +MSD% 2025 Net Sales: +6% (2H: +12%) 2026 Net Sales Forecast: +HSD%*2 ⚫ Despite softness in China & TR, strong double-digit growth in EMEA drove overall performance ⚫ Zadig&Voltaire achieved 40%+ growth, supported by the successful Zadig EDP*1 launch ⚫ narciso rodriguez : Nurture for-her line, the brand’s iconic offering with a new line: for her Pure Musc Blanc ⚫ ISSEY MIYAKE PARFUMS : Expand the target audience with Lumière d’Issey, while consolidating Le Sel success with a new Parfum ⚫ Zadig&Voltaire : Launch of a new olfactive variation with Zadig EDPI*3 ⚫ Max Mara : Launch globally in 2H 2026 *1 Eau De Parfum *2 Including Max Mara *3 Eau De Parfum Intense *4 Excluding the impact of sales prior to the acquisition of Dr. Dennis Gross Skincare in 2024 and its corresponding period in 2025
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29 Drunk Elephant Turnaround ⚫ Actions in 2025 ➢ Completed inventory normalization across key regions and retailers within 2025 ➢ Completed cost structure reform actions in the Americas ⚫ Steadily advancing brand repositioning ➢ Initiate a new brand campaign aimed at the core target segment ➢ Build emotional connection and expand brand support through collaborations with brand ambassadors and creators ➢ Rebuild presence at key retailers
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30 2025 2026 2027 2028~ Skincare Dark Spots Wrinkles Sagging Sun Care Existing Bold Science / TechnologyNew Bold Science / Technology Retinol TripleLock Technology Mineral i-Shield Serum First Technology Fluid Absorption Technology Micro needle Spots Lifecycle Second Skin ~2024 Anti-gravity science V Makeup Fragrances Adopt Cutting-Edge Bold Science / Technology Across Brands; Building a Category-Focused Growth Model A string of new product launches featuring ≥10 leading-edge technologies underway by 2028
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Horizontal Deployment of Technologies Leading to Tangible Results 31 No.1 in Best Cosmetics Awards from Japan’s Big Three Beauty Magazines for Three Straight Years 2018 2019 2020 2021 2022 2023 2024 2025 Company A Company B Company C Company D Company E Shiseido * Total number of 1st–3rd place awards in the Overall, Skincare, and Makeup categories in the first-half and second-half rankings of MAQUIA, VOCE, and BITEKI
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Creating Sustainable Social Value through Business Growth People Strategy Sustainability Strategy Environment ⚫ Awarded Double A List Recognition (Climate Change and Water Security) from CDP for second consecutive years ⚫ Extending the adoption of sustainable packaging using LiquiForm®; Won the highest prize at JAPAN PACKAGING CONTEST ⚫ Strengthening traceability to promote responsible procurement; Palm oil: 73% at the mill level, 59% at the plantation level*4 Society ⚫ Advancing Gender Equality 0.95 million people*2 ⚫ Empowering people through the power of beauty 0.40 million people*3 ⚫ Percentage of Women Managers*1 Global : 60.3% Japan : 43.3％ ⚫ The Shiseido Way – our value, mindset and actions that shape how we work towards 2030 VISION Our Foundation Inspired by nature, attentive to everyone Our Work Let the product speak for itself Our Evolving Style Keep changing to remain true to ourselves Our Approach Appreciate dilemmas while rising to achieve brilliance Our Belief in Beauty Richness in everything The Shiseido Way 32 *1 As of January 2026, preliminary figures *2 Direct outreach through the support for girls’ education through Clé de Peau Beauté and Shiseido DE&I Lab, etc *3 Direct outreach through Shiseido Life Quality Makeup activities and ANESSA Sunshine Project, etc *4 Based on palm oil equivalent weight
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➢ Ms. Keiko Kaneko • Audit Committee • Extensive experience in the field of global corporate law as a lawyer, including M&A • Deep expertise in management through participation in the management of their law firm Governance Enhancement: Foundations for Maximizing Corporate Value ⚫ Newly Elected Candidates for External Directors Experience as top management of a listed company Corporate management experience Experience in BtoC, neighboring industries Brand marketing Legal affairs and risk management Finance, accounting, financial systems Kentaro Fujiwara ● ● ● ● Ayako Hirofuji ● ● ● Hiromi Anno ● ● ● Hitoshi Okamoto ● ● ● ● Mariko Tokuno ● ● ● Yoshihiko Hatanaka ● ● ● ● Ritsuko Nonomiya ● ● Andrew House ● ● ● ● Takuya Nakata ● ● ● ● Yasuko Gotoh ● ● Yasuhiro Nakajima ● ● ● Keiko Kaneko ● ● ➢ Mr. Andrew House • Nominating Committee / Compensation Committee • Extensive experience as the global head of the entertainment business • High level of knowledge in brand marketing and overseas markets, particularly in North America ➢ Mr. Takuya Nakata • Nominating Committee / Compensation Committee • Vast experience a CEO of a publicly listed manufacturing company with global operations, leading overseas businesses • Deep expertise in corporate governance applied in the establishment and operation of governance structures ⚫ Skills Matrix after the Ordinary General Meeting of Shareholders in March 2026 (Planned) 33
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34 Net Sales Core OP Core OP Margin 970.0 2030 Target 2025 Actual 4.6%44.5 2026 Forecast 7.0% ≥10% Strive to Achieve Targets for 2026: Unwavering Commitment to Maximizing Corporate Value 990.0 69.0 (Billion Yen)
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Supplemental Data 1 2025 Q4 Net Sales and Core Operating Profit by Reportable Segment*1 36 *1 In 2025, we have implemented changes to segment reporting in order to have better grasp on profitability of each segment. For details, please refer to news release published on March 28, 2025. 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.” 2024 results have been restated to reflect the changes *2 Calculated based on total sales including intersegment sales and internal transfers between segments *3 Excluding the impacts of foreign exchange translation, business transfers and acquisitions Top: Net Sales Bottom: Core OP (Billion yen) 2024 Q4 % of Net Sales/ Core OPM %*2 2025 Q4 % of Net Sales/ Core OPM %*2 YoY Change YoY Change % YoY FX-Neutral % YoY LfL %*3 Japan 75.5 28.2% 76.2 27.6% +0.8 +1.0% +1.0% +1.6% 9.6 12.7% 11.0 14.5% +1.4 +14.6% - - China & Travel Retail 98.1 36.6% 102.2 37.0% +4.1 +4.2% +2.4% +2.4% 22.4 22.6% 17.8 17.3% −4.6 −20.3% - - Asia Pacific 18.4 6.9% 20.8 7.5% +2.4 +13.0% +9.4% +9.5% 2.4 12.7% 3.3 15.7% +1.0 +40.2% - - Americas 31.3 11.7% 28.4 10.3% −2.9 −9.4% −10.5% −10.5% −5.6 −17.1% −4.0 −13.4% +1.6 - - - EMEA 41.1 15.3% 45.0 16.3% +3.9 +9.5% +0.8% +0.8% 1.9 4.3% 3.0 6.6% +1.1 +59.6% - - Other*3 3.4 1.3% 3.5 1.3% +0.2 +4.9% +4.3% +47.0% −1.2 −35.1% 0.2 4.3% +1.4 - - - Adjustment - - - - - - - - −20.5 - −17.0 - +3.5 - - - Total 267.8 100% 276.2 100% +8.3 +3.1% +0.8% +1.2% 8.9 3.3% 14.4 5.2% +5.5 +61.4% - -
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Supplemental Data 2 2025 Net Sales and Core Operating Profit by Reportable Segment*1 37 Top: Net Sales Bottom: Core OP (Billion yen) 2024 % of Net Sales/ Core OPM %*2 2025 % of Net Sales/ Core OPM %*2 YoY Change YoY Change % YoY FX-Neutral % YoY LfL %*3 Japan 294.3 29.7% 295.3 30.4% +1.1 +0.4% +0.4% +0.7% 25.9 8.8% 39.0 13.1% +13.1 +50.6% - - China & Travel Retail 357.8 36.1% 342.2 35.3% −15.5 − 4.3% − 3.5% − 3.5% 72.0 19.9% 64.5 18.7% − 7.5 − 10.4% - - Asia Pacific 71.7 7.2% 73.3 7.6% +1.6 +2.3% +1.4% +1.8% 4.9 6.7% 5.1 6.8% +0.2 +3.6% - - Americas 118.5 12.0% 106.6 11.0% −12.0 −10.1% −8.7% −9.5% −9.2 −7.4% −11.6 −10.4% −2.3 - - - EMEA 132.7 13.4% 141.1 14.5% +8.5 +6.4% +3.1% +3.2% 2.7 1.9% 3.9 2.7% +1.3 +48.5% - - Other*3 15.7 1.6% 11.4 1.2% −4.3 −27.2% −27.0% −14.6% −1.1 −6.6% −1.3 −9.5% −0.1 - - - Adjustment - - - - - - - - −58.7 - −55.2 - +3.5 - - - Total 990.6 100% 970.0 100% −20.6 −2.1% −2.1% −1.8% 36.4 3.7% 44.5 4.6% +8.2 +22.4% - - *1 In 2025, we have implemented changes to segment reporting in order to have better grasp on profitability of each segment. For details, please refer to news release published on March 28, 2025. 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.” 2024 results have been restated to reflect the changes *2 Calculated based on total sales including intersegment sales and internal transfers between segments *3 Excluding the impacts of foreign exchange translation, business transfers and acquisitions
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YoY % Q4 +1% 2025 −0% % of Net Sales 23% YoY % Q4 −2% 2025 +9% % of Net Sales 7% YoY % Q4 +8% 2025 −9% % of Net Sales 5% YoY % Q4 +9% 2025 −39% % of Net Sales 2% YoY % Q4 +6% 2025 +5% % of Net Sales 4% YoY % Q4 −10% 2025 −4% % of Net Sales 2% YoY % Q4 +5% 2025 +3% % of Net Sales 12% 38 YoY % Q4 +2% 2025 +4% % of Net Sales 20% Core 3 Next 5 * YoY change (%) for each brand is calculated based on foreign exchange rate assumptions as at the beginning of FY2025 which excludes the impacts of foreign exchange translation, etc. * % of net sales is cumulative basis for 2025 Supplemental Data 3 2025 Net Sales by Brand
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39 YoY Change %* * YoY changes (%) are only provided for key brands in each region and are calculated based on foreign exchange rate assumptions as at the beginning of 2025 which excludes the impacts of foreign exchange translation, etc. Japan China & Travel Retail Asia Pacific Americas EMEA SHISEIDO +H-teen% +LSD% +HSD% −HSD% −HSD% Clé de Peau Beauté −L-teen% +HSD% +L-teen% −L-teen% −LSD% NARS −L-teen% +H-teen% +MSD% −M-teen% +H-teen% Drunk Elephant +over 30% −M-teen% ELIXIR −MSD% ANESSA +H-teen% +LSD% +L-teen% narciso rodriguez +MSD% ISSEY MIYAKE PARFUMS −M-teen% d program +L-20% MAQuillAGE +H-teen% Dr. Dennis Gross Skincare −M-20% Zadig&Voltaire +over 30% Supplemental Data 4 Q4 Net Sales by Brand
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40 2024 2025 Q3 YTD Q4 FY Q3 YTD Q4 FY Core Operating Profit 27.4 8.9 36.4 30.1 14.4 44.5 Structural Reform Expenses −23.3 −3.3 −26.6 −10.8 −9.8 −20.6 Impairment Losses / Reversal of Impairment Loss 0.2 0.8 1.0 −51.2 −0.1 −51.3 Gain / Loss on Sales of Fixed Assets 0.7 0.0 0.7 - - - Acquisition-related Costs −0.3 −0.0 −0.3 −0.0 −0.0 −0.0 One-time Costs Related to Internal System Changes −1.3 −0.7 −2.0 −0.0 0.0 −0.0 Other −1.3 −0.4 −1.6 −1.5 0.1 −1.4 Non-recurring Items −25.2 −3.6 −28.8 −63.4 −9.9 −73.3 Operating Profit 2.2 5.4 7.6 −33.4 4.6 − 28.8 (Billion yen) Supplemental Data 5 Non-recurring Items
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Supplemental Data 6 2025 Core Operating Profit Results 41 (Billion yen) 2024 Tariff Impact Group-wide cost management, etc. 41 36.4 One-off effect 2024 (excl. one-off effect) Contribution margin & price increases Structural reform benefits Inflation, etc. 2025 44.5
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2026 YoY Net Sales (LfL*1) Market and Sales Assumptions Japan +MSD% Local: ⚫ The market to grow at moderate pace ⚫ Achieve above-market growth driven by targeted investments in key brands, strategic price increases, selection and concentration of consumer touchpoints Inbound: ⚫ Expect YoY decline overall, albeit with growth in mid-price tier China & Travel Retail −LSD% ⚫ China market to stage a moderate recovery, the softness in Travel Retail market to continue albeit YoY decline narrows ⚫ China to deliver growth driven by core brands with higher investments focused on key brands ⚫ TR YoY sales decline expected despite the shift to tourist-centered business model ⚫ The impact of Japan-China friction reflected in the forecast up to the end of Q1 Asia Pacific +HSD% ⚫ The market to grow at moderate pace ⚫ Taiwan returns to a growth trajectory, Southeast Asia and India achieve above-market growth with strong acceleration Americas +HSD% ⚫ The market to grow at moderate pace ⚫ Achieve high growth with Drunk Elephant turnaround and by driving synergies with EMEA EMEA +HSD% ⚫ The market to grow at moderate pace ⚫ Accelerate growth in outsized markets e.g. France, UK, Germany, maintain strong market share in Italy and Spain ⚫ Strengthen EC channels, capture new channels Total +3% 42*1 Excluding the impacts from FX and business transfer Supplemental Data 7 2026 Sales Forecasts by Reportable Segment
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2024 2025 2026 Property, Plant and Equipment 23.4 24.2 23.0 Intangible Assets, etc. 25.5 18.8 17.0 Capital Expenditures* 48.9 43.0 40.0 Property, Plant and Equipment 35.2 33.3 Intangible Assets, etc. 17.9 17.4 Depreciation and Amortization 53.2 50.7 50.0 Supplemental Data 8 Capital Expenditures; Depreciation and Amortization (Billion yen) * Investments in capital expenditures; property, plant and equipment (excl. right-of-use assets) and intangible fixed assets (excl. goodwill, trademark rights, right-of-use assets) 43
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44 (Billion yen) 2023-end 2024-end 2025-end Americas Business (cash-generating unit*2) Goodwill (Americas) 29.4 58.4 9.7 Trademarks (Drunk Elephant) 42.5 47.1 47.0 Trademarks (Dr. Dennis Gross Skincare) - 18.8 18.8 long-term loans receivable (seller note*1) 46.3 43.1 47.8 Goodwill (EMEA) 7.1 13.2 13.3 Goodwill (China & Travel Retail) 14.3 20.1 20.1 Goodwill (Consol.) 62.1 108.0 58.8 Trademarks (Consol.) 48.6 71.8 71.1 *1 In August 2021, the Company decided to divest three of its prestige makeup brands including bareMinerals along with the assets related to their businesses to an affiliate of private equity firm Advent International. The total purchase price of the Divested Business was 700 million US dollars, of which 350 million US dollars was paid in cash and the remaining 350 million US dollars was deferred to be paid in the form of a seller note (a type of debt financing wherein the seller lends the buyer a portion of the purchase price with a maturity term of 7 years issued by an affiliate which operates the Divested Business *2 Impairment test has been conducted with trademarks of Drunk Elephant and Dr. Dennis Gross Skincare being included in cash-generating unit of the Americas Business ⚫ Americas Business ➢ Goodwill • Recognized an impairment loss of on goodwill of ¥46.8 bn in Q3 2025 due to the declined profitability in Americas • Aiming for strong growth across Americas, starting with the turnaround of Drunk Elephant ➢ Seller note*1 • The seller note includes a clause that would subordinate payment of the amount due to the Company under the seller note to a certain return of capital for the Buyer if the Divested Business does not meet certain metrics based on the financial results in fisc al 2025 • Given the likelihood of this subordination to occur at the end of fiscal 2025, in Q4 2024, the Company recognized of a provis ion of 12.8 billion yen as finance costs • Even if this subordination does apply, there will be no additional provision to be recognized arising from this transaction • Remain committed to maximize the recoverable amount on a seller note Supplemental Data 9 Overview of Assets Associated with Key M&A Transactions