win covid-19 and aim for full recovery as one shiseido!
TRANSCRIPT
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Win COVID-19 and Aim for Full Recovery as One Shiseido!
March 25, 2021
Representative Director, President and CEO
Masahiko Uotani
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WIN 2023: Roadmap to Full Recovery
2021 2022 2023
Back on Growth Track
Full Recovery
Groundwork
Long-term Investment
Global transformation
Enhancing the financial base
Shiseido’s 150th anniversary
Net sales ca. ¥1 Tn OPM 15%
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Key Priorities
Improve Profitability
Focus on Skin Beauty
Rebuild Business Foundation
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Shiseido's Executive Officers
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代表取締役 エグゼクティブオフィサー 常務
Yukari Suzuki
Chief Brand Officer
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Focus on Skin Beauty
売上構成 80%
2023
2019
60%
Inner Beauty Category
Ingestible
Personalized Service
Mind / Wellness
Skincare-related Category
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Diverse beauty powered by revolutionary innovations
Hybrid of luxury and cutting-edge science
Global Expansion through Innovations
Accelerating global rollout
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Ultimate customization Unique value of “tsuyadama”*
Advanced research in UV radiation
Accelerating Growth in Asia
* The inner glow revealed on cheeks only when skin is firm and transparent
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Japan: Response to Diverse Consumer Needs
No.1 all-in-one skincare for 7 consecutive years
Simple solutions for age-based concerns
A beautiful look with ease in one swift application
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Norio Tadakawa
Japan Region COO
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Japan Business in Last Three Years
Sudden increase in inbound demand; counters overflowing with
consumers
Counselling stalled due to
COVID-19
2018 2019 2020
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Restore Growth of Japan Business
Collaborations with business partners
Omnichannel strategy capturing changes in
consumer mindset & habits
Innovative products and services offering new value
Increase trust of loyal customers
in Japan
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Counselling by Beauty Consultants
Mass marketing
Transfer and JV of Personal Care Business Purpose
Foster further development of the business through a spin-off from Shiseido
and joint management of the new company
Cosmetics Business Personal Care Business
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Brands with Strong Potential
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Decision Aimed at Restoring Growth
Fierce competition with global peers + Limited resources
Personal Care Business Environment
Low strategic priority in Shiseido’s portfolio
Lack of resources to invest in product development and advertisement
Entrusted to a partner committed to growing the business together
Decision to spin off in order to spur growth of the Personal Care business
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Personal Care Business under the New Company
Develop existing brands
Accelerate product innovations
Enhance marketing and sales, including digital
Maintain high quality: continue manufacturing at Shiseido’s factories
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Future of Employees Protect employment, maintain compensation and incentives Provide growth opportunities and career paths
Proactive employees who hone their professional skills unique to the Personal Care business
and create a vibrant corporate culture
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Kiyomi Horii
Japan Region Prestige Business Division Senior Vice President
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Cosmetics Specialty Store Business: New Times, New Initiatives
Your Beauty Partner in the 100-Year Life
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Renewal of BENEFIQUE
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Leveraging Digital at Specialty Stores
Dedicated e-commerce platform
Strengthen ties with consumers and maximize store value
Store
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Kentaro Fujiwara
China Region CEO
Joining live from Shanghai, China
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CAGR
+18.5%
More Than Double Growth in Five Years
2020 2015
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Skin Beauty Brands: New Launches
High-end brand from Ginza
“The power of trees” Revolutionary aging
care from Japan
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Accelerating Digital Transformation
Group sales ranking in the beauty market at Singles’ Day 2020:
#3 *Tmall General Trade + Tmall Global, Shiseido Group
Stronger connections with consumers
Higher e-commerce sales ratio
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Collaboration with Travel Retail
Expanding sales to Chinese travelers
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Shiseido: 40 Years in China
Create social value to win the trust of Chinese consumers and society
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取締役候補者 エグゼクティブオフィサー
Takayuki Yokota
Chief Financial Officer
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Profit Structure Reforms in Americas and EMEA
Drastically improve profitability of
makeup and fragrance
Reduce fixed costs, transform organizations
OPM +10 points
2023
2019
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Profit Structure Reforms in Americas and EMEA
Scale digital technologies and e-commerce
Focus on Skin Beauty brands
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Toshinobu Umetsu
Chief Strategy Officer
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DX: Where We Want to Be
Transform individual consumer experience
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Shift to Digital-driven Marketing
Personalized approach
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Accelerate E-Commerce
Global e-commerce sales ratio: 35% (2023)
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Enhance Digital Capabilities
Strategic partnership with Accenture
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Yoshiaki Okabe
Chief Brand Innovation Officer
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R&D Infrastructure Reform
Brand Value R&D Institute + MIRAI Technology Institute
Strengthen China as our 2nd global R&D base
China Innovation Center (The Oriental Beauty Valley) Global Innovation Center (Yokohama)
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Unique Approach: “Dynamic Harmony”
Value development based on a fusion of opposing elements
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Innovations to Wow Consumers
State-of-the-art technology: “Second Skin”
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Sustainable Technologies
Respect for nature and environment
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Cultivating New R&D Domains
Open collaborations
Inner beauty research
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Minoru Nakamura
Chief People Officer
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PEOPLE FIRST
Increase productivity through organizational reform
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Develop and Acquire Diverse Professionals
Global talent
Leadership development
Review of evaluation and compensation
Digital experts
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HR System Overhaul
Job Grade System: right people in right roles
Shiseido Hybrid Work Style
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Maria Chiclana
Chief Legal Officer
Joining live from NY, USA
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Be a Leader in Diversity
Ratio of female Board members 46% Ratio of female executive officers 32% Ratio of female managers in Japan (as of January 2021) 35%
Aim at 50%
Promote diversity both in business and society
Max明るい
ほとほど明るい
Prime Ministerial Award for Women Empowering
Companies 2020
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3/18梅津さんより ご提供予定
Sustainable packaging for all products (2025) CO2 emissions: achieve carbon neutrality (2026) Sustainable procurement, environmentally friendly
formulas and ingredients
Reduce Environmental Load
East Windsor Factory, USA
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~ビューティーイノベーションでよりよい世界を~
For People For the Planet
ビューティーウェルネスカンパニー
For Society
A sustainable world where everyone can enjoy a lifetime of happiness through the power of beauty
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My Commitment
Achieve global growth
Create the model for Shiseido to remain vital for the next 100 years
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2015 2016 2017 2018 2019
Rise to New Heights
Net Sales ¥1 Tn
■Net Sales
■Operating Profit
2020
Market Cap
OP ¥100.0 Bn
OPM 10%
¥3.1 Tn ¥0.7 Tn
2023
0
50,000
100,000
150,000
200,000
OPM
15%
~
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The Power of People: One Shiseido
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Our DNA: PEOPLE FIRST
Our MISSION
Shareholders Employees Society Consumers Customers Business Partners
Corporate Governance
Investors Diversity Family
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Be a Global Winner with Our Heritage