Shiseido Company,limited · TSE:4911
Shiseido Company,limited — Shiseido Co Ltd Ord — 1H 2025 Earnings Presentation
27 slides from Shiseido Company,limited's earnings presentation, Aug 6, 2025
Slide 1: 2025 First Half Results (January–June)
2025 First Half Results (January–June) August 6, 2025 Shiseido Company, Limited Kentaro Fujiwara President and CEO Ayako Hirofuji Chief Financial Officer
Slide 2: Forward-looking statements
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 s
Slide 3: Key Highlights of 1H 2025 Results and Full-Year Outlook
Key Highlights of 1H 2025 Results and Full-Year Outlook ⚫ Steady execution of Action Plan 2025-2026; accelerated fixed cost reductions to achieve sustainable profitable growth amid market volatility ➢ Japan: significant boost to profitability thanks to structural reform benefits ➢ China & Travel Ret
Slide 4: 1H 2025 Executive Summary
1H 2025 Executive Summary % of % of YoY YoY YoY YoY 1H 2024 1H 2025 (Billion yen) Net Sales Net Sales Change Change % FX-Neutral % LfL %*1 Net Sales 508.5 100% 469.8 100% −38.7 −8% −6% −6% Core Operating Profit 19.3 3.8% 23.4 5.0% +4.1 +21% Non-recurring Items −22.0 −4.3% −5.3 −1.1% +16.7 - Operatin
Slide 5: Core Operating Profit: Fixed Costs Steadily Reduced Thanks to Structural Reforms
Core Operating Profit : Fixed Costs Steadily Reduced Thanks to Structural Reforms (Excluding Non-recurring Items) ％ of ％ of (Billion yen) 1H 2024 1H 2025 YoY Change YoY % Pts Difference Net Sales Net Sales Net Sales 508.5 100% 469.8 100% −38.7 −7.6% - COGS 122.9 24.2% 106.1 22.6% −16.8 −13.7% −1.6pt
Slide 6: Net Sales by Reportable Segment: Sequential Recovery Across All Regions
Net Sales by Reportable Segment : Sequential Recovery Across All Regions 2024 2025 Like-for-like*1 (vs. 2023) (vs. 2024) Q1 Q2 Q3 Q4 FY Q1 Q2 1H Japan +20% +7% +5% +7% +10% −2% +2% −0% China & Travel Retail*2 −14% −11% −23% +2% −11% −14% −7% −10% Asia Pacific +5% +7% +2% −3% +2% −1% −0% −0% Americas
Slide 7: Net Sales by Brand: Momentum Recovery Across Key Brands
Net Sales by Brand: Momentum Recovery Across Key Brands Clé de Peau Beauté, NARS and ELIXIR Delivering Solid Performance Core 3 YoY % YoY% YoY% YoY% YoY% YoY% (Excl. China & TR) (Excl. China & TR) (Excl. China & TR) Q2 Q2 Q2 Q2 Q2 Q2 −1% +7% +3% +6% +7% +6% 1H 1H 1H 1H 1H 1H −4% +4% +3% +6% +2% +1%
Slide 8: Japan: Upward Momentum Continued in Local Market
Japan: Upward Momentum Continued in Local Market, but Inbound Lost Stream; Profitability Improved Markedly Thanks to Structural Reform Benefits YoY YoY Q2 Market 1H 2024 1H 2025 Change % (Billion yen) • Local: modest growth continued • Inbound: moderate growth on the back of rising number of foreign
Slide 9: China & Travel Retail: Slightly Ahead of Sales Target
China & Travel Retail: Slightly Ahead of Sales Target albeit YoY Decline; China Retuned to Growth; Stable Profitability Maintained Thanks to Cost Discipline YoY YoY Q2 Market 1H 2024 1H 2025 Change % (Billion yen) China: prestige accelerated after Q1, but offline retail channels faced *1 ongoing cha
Slide 10: Americas: Continue to Suffer Sales Decline with Drunk Elephant
Americas: Continue to Suffer Sales Decline with Drunk Elephant; Accelerate Structural Reform Actions YoY YoY 1H 2024 1H 2025 Q2 Market*2 (Billion yen) Change % • Maintained YoY growth, but fell short of expectations *1 Net Sales 57.3 51.5 −5.8 −9.0% Q2 Consumer Purchases*3 • −high single％ Core OP −2
Slide 11: Asia Pacific and EMEA
Asia Pacific: Market Contraction Continued, but Still Captured Share Gains EMEA: Ongoing Sales Decline with Drunk Elephant; Fragrances Remained Buoyant Asia Pacific EMEA (Billion yen) 1H 2024 1H 2025 YoY Change YoY % (Billion yen) 1H 2024 1H 2025 YoY Change YoY % Net Sales 34.4 33.7 −0.8 −0.5%*1 Net
Slide 12: 2025 Core Operating Profit Forecast
2025 Core Operating Profit Forecast Full-year forecast for core OP reiterated despite downside risks to achieving sales target; remain committed to maximizing opportunities while minimizing risks (Billion yen) Risk-averse cost management 36.5 36.5 Structural reform benefits realized ahead of the pla
Slide 13: 2025 Sales Forecasts: Downside Risks to Achieving Sales Target
2025 Sales Forecasts: Downside Risks to Achieving Sales Target Initial Forecast Risks & Opportunities YoY Net Sales (LfL%*1) Total: +high single% Japan ⚫ Inbound sales to fall significantly short of expectations due to downturn in tourist Local: +high single% consumption Inbound: +mid teen% China &
Slide 14: Tariff Impact: Net Impact on Earnings Reduced to ¥3.0 bn
Tariff Impact: Estimated Net Impact on Earnings Reduced to ¥3.0 bn from ¥7.0 bn; Implementing Risk Mitigation Measures <Assumptions> ➢ As of Q1 results announcement (estimated impact: ≤ −¥7.0 bn): U.S. tariffs on Chinese imports: +145%, China’s retaliatory tariffs on U.S. imports: +125%, U.S. import
Slide 15: Progress on Global Cost Structure Transformation
Progress on Global Cost Structure Transformation 1H: Realized ¥13.5bn cost reduction benefits, on track with the plan; Full-year: Accelerate structural reforms in Americas ahead of the schedule; raising cost reduction target: ¥20.0 bn → ¥25.0 bn Increase 2-year reduction targets from ¥45.0 bn → ¥50.
Slide 16: Current Progress and Next Step
Current Progress and Next Step
Slide 17: Driving the Value of Our Key Brands
Driving the Value of Our Key Brands 17
Slide 18: Drunk Elephant: Challenges Reassessed by the Global Team
Drunk Elephant : Challenges Reassessed by the Global Team 2025 2026 • Rebuilding brand engagement • Strategic investment to drive new Initial Plan customer acquisition • Return to stable and sustainable growth • Regaining momentum via new product launches • Lack of targeting based on clear customer
Slide 19: Americas: Steady Progress Towards Returning to Profitability in 2026
Americas: Steady Progress Towards Returning to Profitability in 2026 ⚫ Accelerate turnaround strategies under the new leadership ➢ Achieve operational excellence by optimizing our organization; rebuild resilient business model and cost structure to drive sustainable profit growth ➢ Key structural re
Slide 20: FOCUS ERP System: Implementation Completed Globally
FOCUS ERP System*: Implementation Completed Globally; Set to Drive Operational Agility and Productivity Across the Organization Progress Update ✓ With FOCUS ERP go-live in Japan & Global Headquarters in July, standardization and integration completed globally ✓ Operations standardized across all reg
Slide 21: Solid Progress and Next Steps Forward
Legend Done/Benefits Delivered Solid Progress and Next Steps Forward (Timeline of benefit delivery) Benefits to be Delivered Action Plan 2025-2026 New Medium-term Strategy • Focus our efforts on Strengthen key brands key brands: Core 3 & Next 5 Boost sales composition of Core3 & Next 5 Reinforce • M
Slide 22: Be a Global Winner with Our Heritage
Be a Global Winner with Our Heritage
Slide 23: Supplemental Data 1: Q2 Net Sales and Core OP by Segment
Supplemental Data 1 Q2 Net Sales and Core Operating Profit by Reportable Segment*1 Top: Net Sales % of Net Sales/ % of Net Sales/ YoY YoY YoY YoY Bottom: Core OP Q2 2024 Q2 2025 *3 (Billion yen) Core OPM %*2 Core OPM %*2 Change Change % FX-Neutral % LfL % 70.7 27.3% 71.7 29.7% +1.0 +1.4% +1.4% +1.6%
Slide 24: Supplemental Data 2: 1H Net Sales and Core OP by Segment
Supplemental Data 2 1H Net Sales and Core Operating Profit by Reportable Segment*1 Top: Net Sales % of Net Sales/ % of Net Sales/ YoY YoY YoY YoY Bottom: Core OP 1H 2024 1H 2025 *3 (Billion yen) Core OPM %*2 Core OPM %*2 Change Change % FX-Neutral % LfL % 146.8 28.9% 145.9 31.0% −0.9 −0.6% −0.6% −0.
Slide 25: Supplemental Data 3: Q2 Net Sales by Brand
Supplemental Data 3 Q2 Net Sales by Brand YoY Change %* Japan China & Travel Retail Asia Pacific Americas EMEA SHISEIDO +low teen% −high single% +low teen% +high single% +low single% Clé de Peau Beauté +low single% +low single% +low teen% +high teen% +low single% NARS +over 30% +high single% +low si
Slide 26: Supplemental Data 4: Non-recurring Items
Supplemental Data 4 Non-recurring Items (Billion yen) 2024 2025 Q1 Q2 1H Q1 Q2 1H Core Operating Profit 11.3 7.9 19.3 8.3 15.1 23.4 Structural Reform Expenses −19.7 −0.6 −20.4 −0.8 −4.0 −4.8 Impairment losses/reversals −0.1 −0.0 −0.1 0.0 −0.0 −0.0 Gain on Sale of Non-current Assets - 0.7 0.7 - - - A
Slide 27: SHISEIDO
SHISEIDO