Business Report - Shiseido group website

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In the Healthcare Division, we added to our lineup of collagen-related products as competition intensified in this market. Complementing the mainstay The Collagen line of beauty supplements for enhanced skin regeneration, we launched Bénéfique Collagen Royal Rich as part of the BENEFIQUE line sold exclusively in voluntary chain stores. Others Sales of the cosmetics brands Ayura, d’ici là, Ettusais and IPSA, which are not sold under the Shiseido name, all increased year on year. Efforts to nurture the existing core products of the Ettusais skincare and makeup brand sold in variety stores generated particularly strong growth. Global Business Segment Sales in the Global Business segment increased 5.6 percent to ¥319,678 million, and increased 12.2 percent on a local currency basis. Operating income decreased 9.0 percent to ¥8,212 million. The Overseas Cosmetics Division continued to generate strong growth in Europe, North America and Asia, including China. The Overseas and Domestic Professional Divisions performed well. Overseas Cosmetics Division In the prestige market, sales of the global brand SHISEIDO increased in various countries. Key performers included the SHISEIDO BENEFIANCE anti-aging line and the SHISEIDO FUTURE SOLUTION LX premium skincare line. In addition, sales of the NARS makeup artist brand increased substantially, especially in North America. In addition, Beauté Prestige International generated solid growth in sales of its designer fragrances, including the Elie Saab fragrance launched in July 2011. The travel retail business 1 also performed well. Moreover, our online sales business in the United States got off to a good start. We achieved sustained growth of 2010 acquisition Bare Escentuals, Inc.’s mineralbased makeup brand bareMinerals with enhanced sales efforts in existing North American stores and the launch of READY, a new solid-type makeup. Note 1. Travel retail business: Business involving duty-free shops at airports and elsewhere. [Translation: AGM 2012] - 10 -
In the core Chinese market, we faced intensifying competition from European, North American and other companies. In the department store channel, China-only brand AUPRES continued to perform well, supported by a renewal of its skin-brightening skincare line. Other highlights included continued solid performances by urara, a dedicated brand sold only in cosmetics specialty stores, and PURE & MILD, a brand that targets middle-income earners. Overall, our sales grew at a significantly higher rate than the market as a whole. In addition, our online sales business in China got off to a good start. In the Asian masstige market, 2 we increased sales of Za, a comprehensive skincare and makeup brand targeting middle-income earners. We also initiated a full-scale rollout of the TSUBAKI brand in China, and introduced Senka, a low-priced, highly functional skincare brand, in Taiwan and Hong Kong. In emerging countries, we continued expanding sales in Russia. We also steadily expanded our business into new markets with sales launches in Panama, Armenia, Belarus, and other initiatives. As of December 31, 2011, the global brand SHISEIDO was available in 87 countries and regions, including Japan. Note 2. Masstige: A word coined from “mass” and “prestige.” Masstige products are positioned as more expensive than mass-produced products, but more moderately priced than prestige products. Overseas and Domestic Professional Divisions THE HAIR CARE ADENOVITAL SCALP ESSENCE, a next-generation hair-growth treatment incorporating the active medicinal ingredient adenosine, was a major hit in Japan. Overseas, sales increased in the rapidly growing market of China. Three other Group companies also increased sales: Carita and Decléor, which sell products to esthetic and beauty salons, mainly in Europe; and Zotos International, which sells products to hair and beauty salons, mainly in North America. Others Sales in other businesses decreased 7.7 percent compared with the previous fiscal year to ¥8,917 million. Operating income decreased 24.9 percent to ¥1,381 million. [Translation: AGM 2012] - 11 -
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Page 13 and 14: Emerging Countries We will strength
Page 15 and 16: 1.2 Outline of the Shiseido Group (
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Page 45 and 46: Overview of Shiseido’s CSR Activi

Business Report - Shiseido group website

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