Slides
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2026 First Half Results ( January - June ) August 5 , 2026 Shiseido Company , Limited Kentaro Fujiwara President and CEO Ayako Hirofuji CFO SHISEIDO
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2 Definitions of Terms • Net Sales YoY LfL %: Calculated by excluding FX impact, the impact of all business transfers in the current and prior periods, and service provision during the transition period related to those transfers • Core Operating Profit: Calculated as operating profit excluding profits or losses incurred by non-ordinary factors (non- recurring items), such as costs of structural reforms, impairment losses, and acquisition-related costs, etc. • Core Operating Profit Margin: Calculated based on total sales including intersegment sales and internal transfers between segments • EBITDA: Core Operating Profit plus Depreciation (excl. depreciation of right-of-use assets) and Amortization • Brand Sales by Region: YoY change (%) is calculated based on initial exchange rate assumptions, and excludes the impact of foreign currency exchange, etc. 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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⚫ 1H Net Sales: ¥499.0 bn (YoY LfL% 1H: flat, Q1: －3%, Q2: +2%) ➢ Returned to LfL sales growth in Q2 • Growth momentum improved across major brands, led by ELIXIR and narciso rodriguez • Growth acceleration expanded across regions, including Japan, China & Travel Retail, Asia Pacific, and EMEA ➢ Convert key launches and marketing investments into stronger 2H growth ⚫ 1H Core Operating Profit: ¥44.4 bn (YoY: +¥21.1 bn) ➢ Structural reform benefits, particularly in Americas, and disciplined cost management drove significant profit growth ⚫ Geopolitical risks ➢ Japan–China relations: FY impact level unchanged from Q1. Capturing diversified global tourist demand while pursuing opportunities in evolving Chinese traveler flows ➢ Middle East situation: FY impact expected to ease, supported by improving supply conditions and alternative sourcing ⚫ Full-year forecasts: unchanged ➢ Net Sales: While mindful of downside risks in EMEA and Americas, accelerate focused investments in high-growth opportunities to build on momentum ➢ Core Operating Profit: Targeting outperformance while maintaining investment discipline Growth momentum accelerated in Q2, while profit growth strengthened Stepping up investments behind growth drivers to fuel growth in 2H and beyond Maintaining FY guidance; targeting profit outperformance 3 Key Highlights of 1H 2026 Results Briefing
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(Billion yen) 2025 1H % of Net Sales 2026 1H % of Net Sales YoY Change YoY % YoY FX-Neutral % YoY LfL % Net Sales 469.8 100% 499.0 100% +29.1 +6% －1% －0% Core Operating Profit 23.4 5.0% 44.4 8.9% +21.1 +90% Non-recurring Items －5.3 －1.1% －2.5 －0.5% +2.8 - Operating Profit (Loss) 18.1 3.8% 41.9 8.4% +23.8 +132% Profit (Loss) before Tax 19.2 4.1% 44.2 8.9% +25.0 +130% Income Tax Expense 10.1 2.2% 15.2 3.0% +5.1 +50% Profit (Loss) Attributable to Owners of Parent 9.5 2.0% 29.7 6.0% +20.2 +211% EBITDA 48.5 10.3% 70.0 14.0% +21.5 +44% Free Cash Flow 17.5 +3.7% 22.5 +4.5% +5.0 +29% 4 Overview of 2026 1H Results Net Sales ： YoY LfL % Flat Organic revenue growth turned positive in Q2, with 1H net sales flat YoY Core Operating Profit ： YoY Change +¥21.1 bn Strong profit growth achieved through structural reforms and company-wide cost management Free Cash Flow ： YoY Change +¥5.0 bn Increase in cash outflows from the early retirement program at Global HQ etc was offset by higher profit before tax FX rate for 2026 1H: USD/JPY: 158.1 yen, EUR/JPY: 184.4 yen CNY/JPY: 23.0 yen (Same period of the previous year) USD/JPY: 148.5 yen EUR/JPY: 162.1 yen CNY/JPY: 20.5 yen
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(Excluding Non-recurring Items) (Billion yen) 2025 1H % of Net Sales 2026 1H % of Net Sales YoY Change YoY % Pts Difference Net Sales 469.8 100% 499.0 100% +29.1 +6.2% - COGS 106.1 22.6% 105.1 21.1% ー1.0 ー1.0% ー1.5pts Gross Profit 363.7 77.4% 393.9 78.9% +30.2 +8.3% +1.5pts SG&A 342.9 73.0% 354.8 71.1% +11.8 +3.5% ー1.9pts Marketing investments 135.3 28.8% 146.2 29.3% +10.9 +8.1% +0.5pts Brand development / R&D 17.7 3.8% 16.7 3.4% ー1.0 ー5.4% ー0.4pts Personnel expenses* 108.1 23.0% 110.3 22.1% +2.2 +2.0% ー0.9pts Other SG&A 81.8 17.4% 81.5 16.3% ー0.3 ー0.4% ー1.1pts Other Operating Income / Expenses 2.6 0.6% 5.3 1.1% +2.7 +104.7% +0.5pts Core Operating Profit 23.4 5.0% 44.4 8.9% +21.1 +90.1% +3.9pts Core Operating Profit: Structural Reform Benefits and Cost Discipline Drove Profit Growth, Improving Profit Structure Supports the Transition to Growth 5* Including POS personnel expenses COGS ： COGS ratio improved, partly driven by reversal of inventory provisions SG&A ： Reduced on an FX-neutral basis Marketing investments ： Focused investments to accelerate growth of key brands and new products Personnel expenses* ： Reduced through structural reform benefits and natural attrition, offsetting salary increases Other SG&A ： Lower outsourcing costs and depreciation driven by structural reforms, together with disciplined cost management Other Operating Income / Expenses ： Including provision reversals
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6 Net Sales by Reportable Segment: Q2 Growth Reaccelerated Across Most Regions Q1 Q2 Q3 Q4 FY Q1 Q2 1H Japan －2% +2% +2% +2% +1% －4% +3% －0% China & Travel Retail －14% －7% +8% +2% －3% －1% +1% －0% Asia Pacific －1% －0% －2% +9% +2% －1% +5% +2% Americas －19% +4% －9% －10% －9% +5% －8% －1% EMEA －9% +2% +22% +1% +3% －10% +9% －1% Total －9% －3% +4% +1% －2% －3% +2% －0% 2026 (vs. 2025) 2025 (vs. 2024) YoY LfL
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7 Q2 Market • Local: Modest growth continued • Inbound: Chinese visitors continued to decline, market growth continued to moderate Q2 Consumer Purchases • －LSD% - Local: +LSD% - ELIXIR and ANESSA: Double-digit growth - SHISEIDO accelerated new consumer acquisition, performed strongly - Clé de Peau Beauté continued to face headwinds, while continuing efforts to rebuild its loyal customer base - Inbound: －M-teen% - Inbound customer base diversified further, particularly through visitors from Thailand, Taiwan, South Korea and other regions; decline narrowed 1H Net Sales & Core Operating Profit • Continued reductions in COGS and personnel expense ratios, along with increased marketing investments, drove steady and sustainable profitability improvement • Profitability improved despite the decline in inbound sales Japan: Diversified Growth Drivers Supported Resilient Growth and Profitability (Billion yen) 2025 1H 2026 1H YoY Change YoY %* Net Sales 145.9 144.7 ー1.2 ー0.4% Core Operating Profit 19.5 20.9 +1.4 +7.2% Core OPM 13.3% 14.4% - ＋1.1pts * Net Sales YoY% means Net Sales YoY LfL% Key Brand Net Sales Composition ■1H 2025 ■1H 2026 Net Sales by Brand
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8 Q2 Market • China: The overall prestige market demonstrated solid growth • Travel Retail: Negative impact continued with ongoing concession realignment in Chinese Mainland Q2 Consumer Purchases • China: +LSD% Offline: +MSD% EC: +LSD% - 618 performance benefited from focused investments in hero products - Clé de Peau Beauté and NARS accelerated, ANESSA’s decline narrowed • Travel Retail: －HSD% - Chinese Mainland: Revenue remained impacted by concession realignment, with a moderating decline - Hainan: Recovery momentum continued 1H Net Sales & Core Operating Profit • Strengthening price discipline across brands • Profit increased through improved labor productivity etc. China & Travel Retail: Profitability Improved as China Returned to Growth and Gained Market Share on Strong 618 Performance ■1H 2025 ■1H 2026 (Billion yen) 2025 1H 2026 1H YoY Change YoY %* Net Sales 173.9 191.4 +17.5 ー0.1% Core Operating Profit 38.8 47.6 +8.8 +22.7% Core OPM 22.1% 24.6% - +2.5pts * Net Sales YoY% means Net Sales YoY LfL% Key Brand Net Sales CompositionNet Sales by Brand
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9 Americas: Advancing Toward Full-Year Profitability, Supported by Improving E-Commerce Trends ■1H 2025 ■1H 2026 (Billion yen) 2025 1H 2026 1H YoY Change YoY %*1 Net Sales 51.5 54.6 +3.1 ー0.9% Core Operating Profit ー5.8 2.0 +7.8 - Core OPM ー10.8% 3.6% - +14.3pts *1 Net Sales YoY% means Net Sales YoY LfL% *2 Prestige market *3 Data coverage: U.S. and Canada Key Brand Net Sales CompositionNet Sales by Brand Q2 Market*2 • Maintained growth Q2 Consumer Purchases*3 • －LSD% Channel mix transformation continued to progress - Offline: －HSD% (Q1: －HSD%) - Continued focus on efficiency and prioritization of key states and retail partners - NARS: declined; decisive measures taken, including channel selection review - SHISEIDO: Continued strong performance on Vital Perfection and Suncare - E-commerce: +HSD% (Q1: +LSD%) - Led by SHISEIDO - Growth from Drunk Elephant and Dr. Dennis Gross Skincare 1H Net Sales & Core Operating Profit • COGS ratio improved, led by reversal of inventory provisions • Structural reform benefits continued to materialize, particularly in personnel and other expenses Fragrance
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EMEAAsia Pacific 10 Q2 Market*2 Accelerated across major countries and regions, including Taiwan Q2 Consumer Purchases*3 +MSD% • E-commerce grew by +H-teen%, with channel mix transformation continued • ELIXIR delivered outstanding growth, scaling a proven growth model from Japan 1H Net Sales & Core Operating Profit • Gross profit expanded, driven by South Korea, Vietnam and other key markets • Enhanced marketing efficiency and cost management Q2 Market*2 Continued Modest Growth Q2 Consumer Purchases*4 +LSD% • Fragrances, led by narciso rodriguez, gained further momentum and continued to expand market share • Skincare continued to face a highly competitive environment • E-commerce led growth, while optimization of the offline footprint continued 1H Net Sales & Core Operating Profit • 1H profitability reflected upfront investments to support future growth, aiming to recover profits in 2H Asia Pacific: Growth Reaccelerated in Q2, Sustained Momentum in Korea and Vietnam EMEA: Net Sales Recovered in Q2, with Growth Expected in 2H Driven by a Strong Innovation Pipeline ■1H 2025 ■1H 2026 ■1H 2025 ■1H 2026 (Billion yen) 2025 1H 2026 1H YoY Change YoY%*1 Net Sales 33.7 37.1 +3.4 +2.1% Core OP ー0.1 2.2 +2.4 - Core OPM ー0.4% 5.9% - +6.3pts (Billion yen) 2025 1H 2026 1H YoY Change YoY%*1 Net Sales 59.5 66.9 +7.4 ー1.2% Core OP ー2.6 ー3.4 ー0.8 - Core OPM ー4.1% ー4.8% - ー0.7pts Key Brand Net Sales Composition Key Brand Net Sales Composition Net Sales by Brand Net Sales by Brand *1 Net Sales YoY% means Net Sales YoY LfL% *2 Prestige market *3 Data coverage: 10 countries and regions in Asia and Oceania, including Taiwan, South Korea, and Thailand *4 Data coverage: France, UK, Germany, Italy and Spain
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Full-Year Outlook Unchanged: Monitoring Sales Risks While Leveraging a Stronger Profit Structure to Deliver Sustainable Earnings Growth ⚫ 1H Results: ➢ Net Sales: Below plan; intensified competition in EMEA and Americas, and continued challenges in selected brands ➢ Core Operating Profit: Above plan; supported by Group-wide cost management and FX ⚫ Full-Year Outlook: Increased investments in 2H to accelerate top-line growth, while targeting Core Operating Profit above plan （＋）Accelerating growth through targeted resource reallocation （＋）Group-wide cost discipline （＋）Favorable FX impact from yen depreciation （－）Downside sales risk in EMEA and Americas （－）Continued uncertainty in China and Travel Retail 11 Delivering on Our Commitments
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Growth Strategy Progress: Further Acceleration Ahead
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13 Our people and organizations to create beauty value Resilient management foundation building Harmonization with nature (Circular Product Lifecycle Design) Lifelong QOL improvement through diverse “power of beauty” Global-wide optimization across the value chain Enhanced talent development and corporate culture Address social issues through appropriate environmental actions Strategic use of digital technologies and AI Advancement of the matrix organization Pillar 1: Accelerate growth with brand power Pillar 2: Evolve global operations Pillar 3: Drive sustainable value creation Create social value through DE&I Materiality Strategic Pillars Initiatives 2030 Medium-Term Strategy Overview: Accelerate the Creation of Corporate and Social Value Built on Our Strengths Grounded in our strengths: identify focus categories and build the portfolio 1) Maximize innovation by leveraging technological strengths 3) Create new markets through expansion into new categories and domains 2) Accelerate growth by expanding our global reach Enhance value communication: build deeper connections with consumers
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Implementing Brand-Centric Growth Strategy
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SHISEIDO: Reigniting Growth through Premiumization and Brand Equity Rebuilding 15 ⚫ Rebuilding consistent brand equity globally: Improving growth momentum via focused investment in hero products such as ULTIMUNE and Vital Perfection ⚫ Acquiring new and next-generation consumers across Japan and Asia through global ambassadors ⚫ China & Travel Retail: Decisive transformation of the product portfolio toward quality growth ⚫ Additional focused investment in hero products ⚫ New products featuring our Bold Science / Technology*: New Foundation Serum, Vital Perfection Serum Net Sales YoY Q1 ー4%, Q2 ー1% / 1H ー3% 2H Growth Drivers * A highly competitive technology that underpin core brand value and can be broadly leveraged across multiple brands
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16 ⚫ Driving growth through hero products and a new brightening serum featuring Bold Science / Technology ⚫ Enhancing our brand equity through science-based communication ⚫ Japan: Proven new consumer acquisition via mini-size products; solidifying loyalty as the top priority going forward ⚫ China & Travel Retail: Driving strong hero product growth while maintaining distribution discipline ⚫ Accelerating momentum with new products ⚫ Japan: Rebuilding robust loyal user base by strengthening promotion and cross-selling Net Sales YoY Q1 ー2%, Q2 +6% / 1H +2% 2H Growth Drivers Clé de Peau Beauté: Solidifying Equity as a Science-Driven Luxury Brand
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NARS: Accelerating Growth through Prioritized Investment 17 ⚫ New product Natural Matte Longwear Foundation (NMLF) missed expectations ⚫ Driving core line growth through synergies and strengthening the foundation category ⚫ China & Travel Retail : Strong, category-wide growth ⚫ Americas: Sustained strong momentum of ULTA ⚫ Lifting the entire complexion category, including recovery of NMLF ⚫ Americas: Promotional initiatives of the brand’s flagship ORGASM series Net Sales YoY Q1 +7%, Q2 ー1% / 1H +3% 2H Growth Drivers
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ELIXIR: Reliable Engine for Sustainable Growth 18 ⚫ Concentrated investment in 5 hero products on collagen science driving growth ⚫ Brightening Lotion/Emulsion renewal & new Tone-Up UV shade leading expansion ⚫ Capturing a diversified global tourist demand by strengthening both pre-travel and during travel engagement ⚫ Asia Pacific: Driving breakthrough growth through open-channel expansion and strong brand equity ⚫ Strengthening promotion of existing hero products and boosting cross-selling ⚫ V cream renewal featuring our Bold Science / Technology, further expanding the category Net Sales YoY Q1 +4%, Q2 +10% / 1H +7% 2H Growth Drivers
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Fragrances: Scaling a Profitable Growth Model 19 ⚫ Successful annual mega-launch strategy combined with fragrance portfolio expansion ⚫ Expanded our share in the overall EMEA fragrance while improving profitability ⚫ narciso rodriguez: Strong performance of new launches driving market- outperforming growth across regions ⚫ ISSEY MIYAKE PARFUMS: Successfully capturing new target demographics with new product launch ⚫ Strengthening brand equity via innovation, premiumization and digitalization ⚫ Global simultaneous launch of MaxMara 1st Fragrance ⚫ Accelerating momentum through continued investment in the successful 1H model ⚫ Zadig&Voltaire geographic roll out Net Sales YoY Q1 ー9%, Q2 +12% / 1H +1% 2H Growth Drivers
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Transforming Innovation into Growth: Sustainable and Repeatable Growth Model 2023 • Launching REVITALESSENCE SKIN GLOW Foundation • Featuring the Serum First Technology*2 Growth model of Foundation Serum One-off hits Repeatable growth: scaling proprietary technologies across brands and markets ➢ Creating new value rolling out Bold Science / Technology*1 ➢ Science-Driven Value Communication for Consumers ➢ Boosting cross-selling through franchise building & SKU expansion ➢ Scaling success models globally and across brands 2024 • Starting Foundation Serum communication • Launching REVITALESSENCE SKIN GLOW Primer 2025 • Launching REVITALESSENCE Loose Setting Powder • Strengthening global sales 2026 2H • Launching REVITALESSENCE SKIN MATTE Foundation *1 A highly competitive technology that underpin core brand value and can be broadly leveraged across multiple brands *2 Our proprietary technology that encapsulates foundation ingredients within a serum. For SHISEIDO, it is featured in REVITALESSENCE SKIN GLOW Foundation and REVITALESSENCE SKIN MATTE Foundation 20
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2026 New Product Innovation: Accelerating 2H Growth through the Rollout of Bold Science / Technology 1H 2H Skincare Suncare Makeup Fragrances SHISEIDO Foundation Serum Clé de Peau Beauté Cream Supreme ELIXIR Total V Cream Drunk Elephant Kamo Drops New MaxMara Fragrance 21 Company-Wide Bold Science / Technology Existing
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22 China & Travel Retail: Driving Quality Growth by Leveraging Consumer Trends ⚫ Shifting the product portfolio toward high-function premiumization ➢ Expanding the loyal user base and driving profitable growth by shifting resources to hero products ➢ Nurturing next-generation hero products as future growth pillars ⚫ Elevating brand equity through marketing and consumer experience ➢ Strengthening ROI discipline and reducing discount reliance ➢ Strengthening science- and tech-backed value proposition aligned with shifting consumer preferences toward essential value ➢ Maximizing LTV by enhancing offline-exclusive treatment services and personalized experiences ⚫ Optimizing distribution control & channel structure ➢ Strengthening distribution and pricing discipline across China & Travel Retail ➢ Stabilizing Travel Retail following concession realignment
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23 ⚫ Steadily progressing toward profitability in 2026 ➢ Structural reform effects: ¥7.5 bn in 2026 ➢ Cost reductions driven by EMEA/Americas synergies: Centralized indirect procurement and standardized content creation Americas: On Track for Profitability in 2026, Transitioning to Growth Phase ⚫ Focusing on winning strategies ➢ Focusing on the top 3 brand–retailer combinations, “Power Duos” • Establishing a dedicated end-to-end team spanning marketing to supply chain to accelerate execution • Launching retailer-exclusive products and joint promotional initiatives ➢ Expanding online sales share • Accelerating Amazon growth: Ensuring brand equity and profitability through strict pricing discipline, with brand expansion • Strengthening engagement: Driving new customer acquisition, cross-channel traffic and conversion through optimized social media and brand integration ⚫ Drunk Elephant turnaround ➢ Launching the new product Kamo Drops in 2H and promoting cross-selling Phase 2: Focused investment in priority areas and maximization of outcomes Phase 1: Structural reform
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Driving Corporate Value Through Execution and Delivering Tangible Results ⚫ Strengthening One Team alignment between brands and regions through dual reporting lines, while building a company-wide MROI foundation ⚫ Strengthening marketing strategies to outpace market growth ⚫ Establishing the new reporting lines and building rules and infrastructure for brand and SKU optimization ⚫ Accelerating execution speed and enhancing quality under clarified governance and defined roles ⚫ Introducing and embedding the corporate value The Shiseido Way across the entire Group ⚫ Transforming our corporate culture to continuously learn from challenges and embrace new trials Value-Creation Capability: Maximizing innovation ⚫ Transitioning to an innovation-driven growth model via cross-brand rollout of Bold Science / Technology ⚫ Advancing R&D sophistication and shortening product development lead times through AI Value-Communication Capability: Maximizing marketing ROI Strategic Pillar 1 Accelerate Growth with Brand Power Strategic Pillar 2 Evolve Global Operations Strategic Pillar 3 Drive Sustainable Value Creation 24
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Top: Net Sales Bottom: Core OP (Billion yen) 2025 Q2 % of Net Sales/ Core OPM % 2026 Q2 % of Net Sales/ Core OPM % YoY Change YoY Change % YoY FX-Neutral % YoY LfL % Japan 71.7 29.7% 73.5 27.5% +1.8 +2.5% +2.5% +2.9% 8.2 11.3% 10.5 14.3% +2.3 +28.5% - - China & Travel Retail 99.0 41.0% 113.1 42.4% +14.1 +14.2% +0.9% +0.9% 25.5 25.6% 31.9 28.0% +6.4 +25.2% - - Asia Pacific 16.6 6.9% 19.0 7.1% +2.4 +14.7% +5.1% +5.3% －0.0 －0.3% 1.7 8.9% +1.8 - - - Americas 24.3 10.0% 25.0 9.4% +0.7 +3.0% －7.6% －7.6% －4.0 －15.6% 1.7 6.5% +5.7 - - - EMEA 27.9 11.6% 34.3 12.9% +6.4 +22.9% +8.6% +8.6% －2.1 －7.3% －1.8 －4.8% +0.4 - - - Other 2.1 0.9% 2.1 0.8% －0.1 －2.5% －3.8% +61.6% －1.0 －38.0% 0.5 19.8% +1.5 - - - Adjustment - - - - - - - - －11.4 - －13.2 - －1.8 - - - Total 241.6 100% 267.0 100% +25.4 +10.5% +1.7% +2.1% 15.1 6.3% 31.4 11.8% +16.3 +107.7% - - Supplemental Data 1: Q2 Net Sales and Core Operating Profit by Reportable Segment 26
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Top: Net Sales Bottom: Core OP (Billion yen) 2025 1H % of Net Sales/ Core OPM % 2026 1H % of Net Sales/ Core OPM % YoY Change YoY Change % YoY FX-Neutral % YoY LfL % Japan 145.9 31.0% 144.7 29.0% －1.2 －0.8% －0.8% －0.4% 19.5 13.3% 20.9 14.4% +1.4 +7.2% - - China & Travel Retail 173.9 37.0% 191.4 38.4% +17.5 +10.0% －0.1% －0.1% 38.8 22.1% 47.6 24.6% +8.8 +22.7% - - Asia Pacific 33.7 7.2% 37.1 7.4% +3.4 +10.1% +1.9% +2.1% －0.1 －0.4% 2.2 5.9% +2.4 - - - Americas 51.5 11.0% 54.6 10.9% +3.1 +6.0% －0.9% －0.9% －5.8 －10.8% 2.0 3.6% +7.8 - - - EMEA 59.5 12.7% 66.9 13.4% +7.4 +12.4% －1.2% －1.2% －2.6 －4.1% －3.4 －4.8% －0.8 - - - Other 5.4 1.1% 4.4 0.9% －1.0 －19.1% －20.0% +6.2% －0.9 －13.5% －0.2 －3.5% +0.7 - - - Adjustment - - - - - - - - －25.5 - －24.8 - +0.7 - - - Total 469.8 100% 499.0 100% +29.1 +6.2% －0.6% －0.2% 23.4 5.0% 44.4 8.9% +21.1 +90.1% - - Supplemental Data 2: 1H Net Sales and Core Operating Profit by Reportable Segment 27
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Supplemental Data 3: Q2 Brand Sales by Region 28 *YoY of net sales is shown only for major regions of the brand YoY Change %* Global Net Sales Composition Global Japan China & Travel Retail Asia Pacific Americas EMEA Core SHISEIDO 23% －1% +MSD% －MSD% －LSD% －MSD% +HSD% Clé de Peau Beauté 20% +6% －HSD% +L-teen% +HSD% +HSD% +over 40% NARS 11% －1% －M-teen% +HSD% +LSD% －H-teen% +MSD% Next ELIXIR 7% +10% +HSD% +over 50% ANESSA 8% －6% +LSD% －L-teen% +HSD% Fragrance 8% +12% +over 30% +H-teen% +L-teen% Dr. Dennis Gross Skincare 1% －5% －MSD% Emerging BAUM 0% －0% +LSD% d program 1% +1% +LSD% Turnaround Drunk Elephant 1% －9% －HSD% +H-teen% IPSA 2% －4% －LSD% －LSD%
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Supplemental Data 4: 1H Brand Sales by Region 29 *YoY of net sales is shown only for major regions of the brand YoY Change %* Global Net Sales Composition Global Japan China & Travel Retail Asia Pacific Americas EMEA Core SHISEIDO 23% －3% +MSD% －MSD% －LSD% +LSD% －MSD% Clé de Peau Beauté 20% +2% －H-teen% +L-teen% +HSD% －LSD% +H-teen% NARS 12% +3% －HSD% +HSD% +LSD% －LSD% +LSD% Next ELIXIR 7% +7% +MSD% +over 80% ANESSA 7% －10% +L-teen% －M-20% +LSD% Fragrance 8% +1% －L-teen% +HSD% +LSD% Dr. Dennis Gross Skincare 2% －5% －MSD% Emerging BAUM 0% +3% +MSD% d program 1% －7% －HSD% Turnaround Drunk Elephant 1% －12% －LSD% －L-teen% IPSA 2% －7% －L-teen% －LSD%
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30 Structural reform benefits continued to materialize, further strengthening the foundation supporting our growth strategy Supplemental Data 5: Progress on Global Cost Structure Transformation (Billion yen) 2026 25.0+ Japan China Other than the above Americas Global HQ 2026 1H(results) FY(plan) COGS • Selection and concentration of brands and SKUs, strategic price increases • Optimize factory production line efficiency, etc. 4.0 7.0 Marketing Investments • Optimize promotional costs, increase marketing ROI • Expand local production and improve operational efficiency of samples 1.0 1.0 Personnel Expenses • Optimize organization structure, improve productivity • Streamline corporate functions to enhance operational efficiency, etc. 6.0 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. 5.0 9.0 Total 16.0 25.0+
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31 Supplemental Data 6: Non-recurring Items (Billion yen) 2025 2026 Q1 Q2 1H FY Q1 Q2 1H FY (Forecast) Core Operating Profit 8.3 15.1 23.4 44.5 13.0 31.4 44.4 69.0 Structural Reform Expenses －0.8 －4.0 －4.8 －20.6 －0.7 －1.3 －2.0 Impairment Losses / Reversals 0.0 －0.0 －0.0 －51.3 －0.0 0.0 －0.0 Acquisition-related Costs －0.0 －0.0 －0.0 －0.0 - - - Other －0.3 －0.2 －0.4 －1.4 - －0.5 －0.5 Non-recurring Items －1.0 －4.2 －5.3 －73.3 －0.7 －1.8 －2.5 －10.0 Operating Profit 7.2 10.9 18.1 －28.8 12.3 29.6 41.9 59.0
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32 Supplemental Data 7: Overview of Assets Associated with Key M&A Transactions *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 From the perspective of resource allocation and performance evaluation, cash-generating units are defined by segment rather than by brand. Impairment tests were conducted on the trademarks for Drunk Elephant and Dr. Dennis Gross Skincare as part of the Americas cash-generating unit. ⚫ Americas Business ➢ Goodwill • Recognized a goodwill impairment loss 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 a provision of 12.8 billion yen as finance costs • Subordination confirmed based on FY2025 results; no additional provisions required as previously recognized in FY2024 • Remain committed to maximizing the recoverable amount of the seller note (Billion yen) 2024-end 2025-end Q2 2026-end Americas Business (cash-generating unit*2) Goodwill (Americas) 58.4 9.7 Disclosed at year-end Trademarks (Drunk Elephant) 47.1 47.0 Trademarks (Dr. Dennis Gross Skincare) 18.8 18.8 Long-term loans receivable (seller note*1) 43.1 47.8 Goodwill (EMEA) 13.2 13.3 Goodwill (China & Travel Retail) 20.1 20.1 Goodwill (Consol.) 108.0 58.8 60.9 Trademarks (Consol.) 71.8 71.1 Disclosed at year-end