Shiseido to Commence Operations through a Joint Venture in the ...

(Translation)
Dear Sirs and Madams,
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October 20, 2011
Name of the Company: Shiseido Company, Limited
Name of the Representative: Hisayuki Suekawa
President & CEO
(Representative Director)
(Code No. 4911; The First Section of the Tokyo Stock Exchange)
Further inquiries:
Yukihiro Saito
General Manager of Public
Relations Department
(Tel: 03 - 3572 - 5111)
Shiseido to Commence Operations through a Joint Venture
in the Republic of Turkey
Shiseido Co., Ltd has established Shiseido Kozmetik Anonim Şirketi (hereinafter, “Shiseido Turkey”; located in
Istanbul, Turkey) as a joint venture with major Turkish cosmetics import and sales distributor Vesco Kosmetik
Ürünleri Paz. ve Tic. Ltd. Sti. (hereinafter, “Vesco”; located in Istanbul, Turkey). Operations of the new company will
commence from January 2012. With Shiseido possessing a majority equity stake in the joint venture, the company
will become a consolidated subsidiary of Shiseido and global brand SHISEIDO prestige cosmetics products
commonly developed worldwide by Shiseido will be sold.
Initiatives in the Overseas Cosmetics Business
Shiseido is currently promoting a 10-year roadmap established in 2008 with the aim of becoming a “global player
representing Asia with its origins in Japan” by 2017. The overseas sales ratio for the previous term (fiscal year ended
March 2011) increased to 42.9% and the number of countries and regions in which Shiseido operates its global
business is expanding to 87 countries and regions, including Japan.
In recent years, Shiseido has been promoting initiatives to strengthen its business scheme. Specifically, the
Company commenced operations by establishing wholly owned sales companies in Russia in 2008 and Vietnam and
Switzerland in 2010, as well as by launching business operations in Greece by establishing a joint sales company
with a local leading distributor in 2010. Shiseido has devised the New Frontier Strategy under its current Three-Year
Plan (April 2011 - March 2014) and is seeking to strengthen its response toward emerging countries (new markets) as
a means of developing the next growth engine following China.

Background to Establishing a Joint Venture
Shiseido entered the Turkish market in 1998 through an agreement with Vesco, a distributor that the Company has
formed a partnership at this time. Based on an amicable partnership with the company for more than 10 years,
Shiseido has been promoting prestige marketing similar to European markets. As a result, the sales network of
Shiseido cosmetics products has been expanded to approximately 170 stores and has steadily achieved sales growth.
At the same time, in terms of Turkey’s economy, demand for cosmetics products is expanding due to the
expansion of domestic consumption accompanied by the population’s extremely young average age of approximately
29.2 years along with a rise in income. Consequently, the prestige cosmetics market is expected to continue to
achieve high growth in the future. Therefore, in order to further strengthen its presence in the market, Shiseido
decided to establish a joint venture with Vesco, which has an outstanding proven track record in terms of sales
know-how of prestige cosmetics.
Marketing Plan
Based on the existing sales network up to the present, Shiseido Turkey will promote initiatives by placing priority on
expanding in-store share. Shiseido will also seek to bolster its presence at storefronts and to enhance the quality of
counseling through OMOTENASHI (“spirit of hospitality”) by augmenting the training of Beauty Consultants, who
are designated as Shiseido’s strength. Additionally, promotional efforts will be carried out strategically with the aim
of penetrating brand value and acquiring new regular customers. Through these initiatives, Shiseido Turkey will aim
to achieve double-digit growth or higher on an average growth rate basis, while also striving to quickly establish a
strong position in the prestige cosmetics market.
Overview of Joint Venture
1) Company name: Shiseido Kozmetik Anonim Şirketi (Shiseido Cosmetic Joint Stock Company)
referred to as “Shiseido Turkey”
2) Location: Istanbul, Republic of Turkey
3) Main business: Import and sale of global brand SHISEIDO prestige cosmetic products in Turkey
4) Capital: 4.6 million Turkish Lira
5) Investment ratio: Shiseido Group (with Shiseido International Europe S.A. as the largest shareholder) 51%
Vesco Kosmetik Ürünleri Paz. ve Tic. Ltd. Sti. 49%
6) Representative: Mr. Murat USTA
The effect of this strengthening of business scheme in Turkey on our consolidated earnings for the fiscal year
ending March 31, 2012 is expected to be minor.
We expect Shiseido Turkey will contribute to the future expansion of our businesses in the Turkish market.
-End of News Release-
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[Reference]
・Shiseido International Europe S.A.
1) Company name: Shiseido International Europe S.A.
2) Location: 11, Rue du Faubourg Saint-Honoré 75008 Paris, France
3) Main business: European holding company of the Shiseido Group
4) Capital: 256,133,010 euros (wholly owned subsidiary of Shiseido)
5) Representative: Mr. Yu Okazawa
・Vesco Kosmetik Ürünleri Paz. ve Tic. Ltd. Sti. (Vepa Vesco Cosmetics)
Vesco Kosmetik Ürünleri Paz. ve Tic. Ltd. Sti. is under the umbrella of the Vepa Group established in 1962
(a leading Turkish sales company handling various items from prestige cosmetics to sports apparel). The
company started handling foreign-affiliated cosmetic brands for the first time ever in Turkey in 1988 and is
recognized as a long-established distributor of cosmetic products.
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.
Main Initiatives for Strengthening Overseas Business
January 2010
Commenced operations of wholly owned subsidiary Shiseido Cosmetics Vietnam Co., Ltd.
Strengthening of business scheme
Commenced operations of wholly owned subsidiary Shiseido S.A. in Switzerland.
Strengthening of business scheme
Commenced operations of joint venture company Shiseido Hellas S.A. in Greece.
Strengthening of business scheme
February 2010 Completed construction of a production factory in Vietnam, becoming the 11th production base overseas
(Americas: 3, France: 3, Mainland China: 2, Taiwan: 2, Vietnam: 1).
Strengthening of global production structure
May 2010 Announced Shiseido Dah Chong Hong Cosmetics Ltd. (Hong Kong), previously a consolidated subsidiary,
to become a wholly owned subsidiary via the acquisition of all shares.
Strengthening of business scheme
July-September 2010 Launched global brand SHISEIDO in three Balkan Peninsula countries [Albania (July), Kosovo (August) and
Macedonia (September)] via a distributor.
Entry into emerging markets
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September 2010 Launched global brand SHISEIDO in Mongolia via a distributor.
Entry into emerging markets
October 2010 Launched global brand SHISEIDO in Georgia and South Africa via distributors.
Entry into emerging markets
November 2010 Launched global brand SHISEIDO via a distributor in Colombia and via Shiseido Europe S.A.S. in Moldova.
Entry into emerging markets
January 2011 Launched global brand SHISEIDO in Panama via a distributor.
Entry into emerging markets
February 2011 Launched global brand SHISEIDO in Armenia and Belarus via Shiseido Europe S.A.S.
Entry into emerging markets
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