Consolidated Settlement of Accounts
for Fiscal 1998


Shiseido Company, Ltd.
Listing: Tokyo Stock Exchange, First Section
Code Number: 4911
Head Office: 5-5, Ginza 7-chome, Chuo-ku, Tokyo, Japan


The Figures for this Financial Statement are prepared in accordance
with the accounting principles based on Japanese law.
Accordingly, they do not necessarily match the figures in the Annual Report and Facts & Figures issued by our company, which present the same statements in a form that is more familiar to foreign readers through certain reclassifications or summarizations of accounts.

1. Performance in Fiscal 1998 (April 1, 1997-March 31, 1998)

*Amounts under one million yen have been rounded down.
*Numbers in parentheses indicate percentage increase/decrease over previous corresponding term.

(1) Results
(Millions of yen, except for per share figures)

Net Sales

Income from
Operations

Ordinary Income

mil. yen (%)

mil. yen (%)

mil. yen (%)

Fiscal 1998

620,909 (+5.5%)

35,869 (-2.7%)

38,405 (-6.3%)

Fiscal 1997

588,571 (+4.9%)

36,851 (+16.8%)

40,979 (+16.0%)


Net
Income

Net Income
per Share
(Yen)

Fully Diluted
Net Income
per Share
(Yen)

Return
on Equity
(%)

Ordinary Income/
Shareholders'
Equity
(%)

Ordinary
Income/
Net Sales
(%)

mil. yen (%)

yen

yen

(%)

(%)

(%)

Fiscal 1998

16,868(-11.9%)

40.15

39.87

4.2

6.2

6.2

Fiscal 1997

19,152(+9.4%)

47.55

47.35

5.1

6.9

7.0

Note: Losses from investment in subsidiaries and affiliates accounted for by the equity method in fiscal 1998 were ¥26 million
(¥858 million in fiscal 1997).

(2) Financial Position

(Millions of yen, except for per share figures)

Total Assets

Shareholders'
Equity

Equity Ratio
(%)

Shareholders' Equity
per Share

mil. yen

mil. yen

%

yen

Fiscal 1998

626,428

413,794

66.1%

977.39

Fiscal 1997

610,054

388,066

63.6%

941.75

(3) Description of Consolidation and Scope of Application for Equity Method
Number of consolidated subsidiaries: 61
Main consolidated subsidiaries: Osaka Shiseido Co., Ltd.
Shiseido Kako Co., Ltd.
Shiseido Sales Co., Ltd.
Shiseido Cosmenity Co., Ltd.
Shiseido Fine Toiletry Co., Ltd.
    Number of nonconsolidated subsidiaries: 6
    (equity method not applied to these companies.)
    Number of affiliates: 6
    (equity method applied to these companies.)
    Main affiliate: Shiseido Thailand Co., Ltd.

(4) Changes in Accounting Policies and Other Matters

a. The scope of consolidation and exclusion is as follows;
Newly consolidated companies: Shiseido Information Network Co., Ltd.
Shiseido Asia Pacific Co., Ltd.
Shiseido City Co., Ltd.
Helene Curtis Japan Inc.
Irica Instruments Inc.
Taishi Trading Co., Ltd.
Beauté Prestige International S.p.A.
Shiseido International France S.A.S.
(Previously named Shiseido Industry S.A.)
Beijing Huazhiyou Cosmetics Sales Center
Taiwan Shiseido Co., Ltd.
FLELIS International Inc.
Shiseido Korea Co., Ltd.

Excluded consolidated companies:

Zotos Corporation
(merged with Zotos International, Inc.)
Shiseido Wellness Co., Ltd.
SFC Co., Ltd.

New applications of the equity method: SAHA Asia Pacific Co., Ltd.
Company excluded from the equity method: Taiwan Shiseido Co., Ltd.
b. Accounting Policies: There have been no changes in accounting policies.
2. Projections for Fiscal 1999 (April 1, 1998-March 31, 1999)

(Millions of yen)

Net Sales

Ordinary Income

Net Income

mil. yen

mil. yen

mil. yen

Fiscal 1999

655,000

45,500

17,000

Due to a change in regulations covering reporting of consolidated financial statements, the fiscal 1998 figure for ordinary income is ¥5,000 million higher than would have been the case if the previous method had been applied consistently
Reference: Projected consolidated net income per share is ¥40.15.
Projected nonconsolidated net income per share is ¥38.97.
[ Reference Data ]
Nonconsolidated Results for Fiscal 1998 (April 1, 1997-March 31, 1998)

(Millions of yen, except for per share figures)

Net Sales

Income from Operations

Ordinary Income

mil. yen (%)

mil. yen (%)

mil. yen (%)

403,455(+0.5%)

27,398(+2.3%)

33,071(+1.9%)


Net Income

Net Income per Share
(Yen)

Fully Diluted Net
Income per Share
(Yen)

Total Assets

Shareholders' Equity

mil. yen (%)

yen

yen

mil. yen

mil. yen

16,073 (+0.3%)

38.25

37.99

508,650

372,349


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