Shiseido to Commence Cosmetics Sales in Armenia and Belarus

From February 2011, Shiseido will commence sales of its global brand SHISEIDO prestige skincare and makeup lines in the two Newly Independent States (NIS) of the Republic of Armenia (hereinafter, “Armenia”) and the Republic of Belarus (hereinafter, “Belarus”), deploying its long-established prestige marketing strategy centered on Europe and the Americas. The products will be sold via Shiseido Europe S.A.S. (Paris, France), a wholly owned subsidiary. With this latest endeavor, Shiseido overseas cosmetic sales will encompass 85 countries and regions (including Japan) throughout the world.

Background to Market Entry

Shiseido is currently promoting various initiatives in seeking to become “a global player representing Asia with its origins in Japan.” Among its overseas business, Shiseido is focusing on “expansion of operations in new markets” and “strengthening of operating bases in existing markets” as key thrusts. In fiscal 2010, Shiseido is actively promoting inroads from July in three Balkan Peninsula countries beginning with Albania followed by Kosovo and Macedonia, as well as other countries such as Mongolia, Georgia, South Africa, Colombia and Moldova. The
expansion into the Panama market is also being pursued from January 2011.

Marketing Plan in Armenia

Armenia, which is situated at the crossroads of Europe and Asia, is geographically surrounded by Georgia to the
north, Azerbaijan to the east and Turkey to the west. The country has steadily increased its economic power via the transition to a democracy and market economy since it became independent in 1991. Along with such developments, U.S and European prestige fragrances brands have been making inroads into the market.

Shiseido Europe S.A.S. will handle the import and sales of products by concluding contract agreements with
three cosmetics retail chains with a proven performance in sales of imported prestige cosmetics products. In the first year, global brand SHISEIDO products will be launched in seven stores.

Marketing Plan in Belarus

Belarus has maintained a high economic growth since 2000 in tandem with the manufacturing of industrial products
applying its high technological capabilities accumulated since it was part of the former Soviet Union. Despite the
impact of the global economic crisis in fiscal 2009, Belarus is back on a recovery track in fiscal 2010. Amid such
circumstances, consumer purchasing power is rising and international fashion brands have already penetrated the
market. The prestige cosmetics market is also achieving a high growth rate, registering double-digit growth.

In the first year, Shiseido Europe S.A.S. will conclude contract agreements with one cosmetics retail chain with
a proven performance in sales of imported prestige cosmetics products and global brand SHISEIDO
products will be launched in four stores.

Shiseido Europe S.A.S.
1) Company name: Shiseido Europe S.A.S.
2) Location: Paris, France
3) Representative: Mr. Yu Okazawa, International Business Division President of Shiseido Europe S.A.S.
4) Main business: Import and sales of Shiseido Group cosmetics products mainly in Europe
5) Capital: 9 million euros (wholly owned by Shiseido Co., Ltd.)

Global Brand SHISEIDO

Skincare, makeup, suncare, body care, fragrance and men’s cosmetics products, etc.
Principal product lines include SHISEIDO Future Solution LX, SHISEIDO The Skincare, SHISEIDO Bio-Performance, SHISEIDO Benefiance, SHISEIDO White Lucent, SHISEIDO Pureness, SHISEIDO Makeup, SHISEIDO Suncare (body care), SHISEIDO Body Creator
(body care), SHISEIDO Zen (fragrance), SHISEIDO Men (men’s cosmetics products), etc.