Shiseido Company,limited · TSE:4911
Shiseido Company,limited — Investor Presentation (November 2023)
35 slides from Shiseido Company,limited's investor presentation, Nov 30, 2023
Slide 1: Commitment to Regain Growth: Build Back Better Shiseido
Commitment to Regain Growth ~ Build Back Better Shiseido ~ Masahiko Uotani Chairman and CEO November 30, 2023
Slide 2: Agenda
Agenda Introduction Current Challenges Our Strategic Priorities to Regain Growth 2
Slide 3: Evolution of Shiseido
Evolution of Shiseido Founded 1872 # 1 in Japan # 3 in the prestige beauty industry Distributed in 120 countries/regions 39,000 employees 100 nationalities 3
Slide 4: Driven with KAKUGO and Determination
Driven with KAKUGO and Determination To make Shiseido a truly global company that continues shining for the next 100 years KAKUGO 4
Slide 5: Where We Are in Our Journey
Where We Are in Our Journey ■Net Sales ■Operating Profit (Core Operating Profit) Operating Operating Margin Profit ¥100 bn 10% Boycott Net Sales COVID-19 in China ¥1 tn 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Forecast 5
Slide 6: Current Challenges
Current Challenges Slower-than-expected recovery from COVID crisis in Japan Disrupted by China volatility - Boycotting due to treated water release (despite no causal relationship!) - Travel Retail inventory adjustment from Daigou crackdown Transform into Opportunities for Growth 6
Slide 7: Structural Reforms in Japan and China
Structural Reforms in Japan and China Japan, China - Grow topline with strategic investments - Reduce fixed cost base for productivity Travel Retail - Rebuild healthy customer base; Travelers to be 70-80% 7
Slide 8: Our Strategic Priorities to Regain Growth
Our Strategic Priorities to Regain Growth - Corporate mission and vision - Brands and portfolio - Innovation, DX and technologies - Geography - People and organization 8
Slide 9: Skin Beauty and Wellness Company
Skin Beauty and Wellness Company Science Device Clean Second Inner/ Skin Skincare Natural Sun Ingestible care Make Up Wellness Derma/ Microbiome Medical Fragrance Digital Platform 9
Slide 10: Brands and Portfolio
Brands and Portfolio Global Brands Asian Brands Fragrance Brands 10
Slide 11: Flagship skincare brand net sales
2020-2022 CAGR +mid single Net Sales digit% ¥200 bn Our flagship skincare brand No. 2 skincare brand in major European countries 2016 2017 2018 2019 2020 2021 2022 11
Slide 12: Communicating Value of Japanese Beauty to the World
Communicating Value of Japanese Beauty to the World 12
Slide 13: Untapped Opportunities – A Man’s Appeal Manifests in His Skin
Untapped Opportunities – A Man’s Appeal Manifests in His Skin 13
Slide 14: Luxury brand net sales
Net Sales ¥100 bn Highly acclaimed luxury brand Backed by cutting-edge science 2016 2017 2018 2019 2020 2021 2022 14
Slide 15: Clé de Peau Beauté at the Forefront of Innovation
Clé de Peau Beauté at the Forefront of Innovation 15
Slide 16: Brand net sales growth
¥100 bn 2020-2022 CAGR Net Sales +over 30% Continues to inspire creativity, self-expression and limitless artistry Celebrates diversity Globally recognized as a bold and provocative brand 2016 2017 2018 2019 2020 2021 2022 2023 Forecast 16
Slide 17: Clean brand net sales
Net Sales ¥30 bn Acquired in 2019 Pioneer of “Clean” category Strong digital marketing expertise Global rollout in progress 2020 2021 2022 2023 Forecast 17
Slide 18: Significant Investment in Building Brands
Significant Investment in Building Brands 3-year incremental accumulation vs. 2022 Additional ¥100 bn in 2023-25 Scale core brands for profitability Build a process for monitoring brand ROI Rationalize non-core brands and SKUs 18
Slide 19: IFSCC Awards: Testament to Superior Technology
IFSCC Awards: Testament to Superior Technology サンケア技術 31 11 8 6 4 1 1 Shiseido Competitors * IFSCC: The International Federation of Societies of Cosmetic Chemists 19
Slide 20: Cutting-Edge Innovations
Cutting-Edge Innovations LiquiForm® Sun Dual Care Second Skin MolecuShift Technology 20
Slide 21: Skin Diagnosis Utilizing DX
Skin Diagnosis Utilizing DX Skin Diagnosis Technology Beauty DNA Program 21
Slide 22: R&D Capability with 1,200 Researchers around the World
R&D Capability with 1,200 Researchers around the World France China US Singapore Global Innovation Center 22
Slide 23: Japan: Structural Reforms
Japan: Structural Reforms Major cost optimization plans to reach core operating profit ¥50 bn Core Operating Profit (billion yen) Cost Optimization 25.0 Gross Profit 50.0 38.0 −13.0 2022 2025 Target Cost Optimization - COGS: ¥5.0 bn - Marketing and Other Expenses: ¥10.0 bn - Organizational Productiv
Slide 24: China: Business Transformation to Align with New Reality
China: Business Transformation to Align with New Reality Growth strategy - Market growth: from rapid to stable and moderate - High-prestige (Clé de Peau Beauté, The GINZA) - Decrease dependence on KOL promotion - Tier 3-5 cities - Communicate quality and efficacy Cost optimization - Rationalize bran
Slide 25: Now is the Time to Implement Transformation in Japan and China
Now is the Time to Implement Transformation in Japan and China 2023 2024 Implementation Expected Global Cost Savings ¥40 bn+ (2025 vs 2022) 25
Slide 26: Realign Geographic Presence
Realign Geographic Presence Quantum leap growth in Americas/EMEA/APAC Net Sales excl. divest impacts 2019 2023 To Be* Americas/ EMEA/ APAC Japan China/TR Well balanced footprint * Image 26
Slide 27: Americas
Americas Successfully improved profitability Grow core global brands through enriched marketing and local brands development Aggressively seek for M&A opportunities 27
Slide 28: EMEA
EMEA Successfully improved profitability Grow core global brands through enriched marketing and local brands development Enforce profitability in Fragrance Maximize opportunities in the Middle East 28
Slide 29: Asia Pacific
Asia Pacific Accelerate growth in emerging prestige beauty market Drive localized marketing for diverse consumers NARS off to a good start in India NARS counter in India 29
Slide 30: People Drive Value Creation: PEOPLE FIRST
People Drive Value Creation: PEOPLE FIRST OUR MISSION Corporate value / Business Growth People Society Shareholders Diversity Consumers Investors Families Customers Partners Corporate Governance 30
Slide 31: Become the Front Runner for DE&I
Become the Front Runner for DE&I Female Non-Japanese Global Leadership Team*1 35% Board*1 40% Executive Officers*1 40% Leaders globally*2 58% Mid-Career Hires Leaders in Japan*3 38% In Managerial Positions 30% in Japan*3 *1 As of April 1, 2023 *2 As of January 1, 2023 for Japan; as of December 31, 2
Slide 32: Global Leadership Team
Global Leadership Team 32
Slide 33: Shiseido Future University: Develop Global Leaders
Shiseido Future University: Develop Global Leaders 33
Slide 34: We are All in Together
We are All in Together Jtithy Livy 34
Slide 35: Be a Global Winner with Our Heritage
Be a Global Winner with Our Heritage
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