Outlook for Remainder of Fiscal 1999


In the second half of fiscal 1999, the domestic economy and personal consumption are expected to continue declining, and the environment surrounding the Company will remain severe. In response, we will draw on the full companywide resources of Shiseido in order to create even higher levels of "customer benefit."

In the future, we will devote further emphasis on the "pursuit of return" in order to raise the value of the Company. In other words, we will pay close attention to our core businesses, returning to the basics of the "business of pursuing beauty," as we strive to achieve "global-level growth by maximizing brand value" while at the same time promoting "structural reform aimed at raising profitability." Since the close of the interim period under review, we have already starting making full-scale changes to the profit structure of our sales subsidiaries. Specifically, we will reform the cost structure of the subsidiaries to raise the share of variable costs. In this way, we intend to create a profit structure at our sales subsidiaries that can respond flexibly to changes in net sales.

For the remainder of fiscal 1999, our forecasts include a loss on devaluation of securities of the same level as that reported in the interim period under review. If that loss is not taken into consideration, consolidated net income would be 12.7 billion yen, down 25%, and nonconsolidated net income would be 16.7 billion yen, up 4%.

Following the fiscal 1998 year-end dividend, which was increased to 7.00 yen per share, we declared an interim dividend of 7.00 yen. We also intend to declare a year-end dividend of 7.00 yen, for a total annual dividend of 14.00 yen per share. We will continue working to satisfy the expectations of our shareholders.

Consolidated Net Sales

(Billions of yen)

Fiscal 1999
(Estimate)

Fiscal 1998
(Results)

Increase /Decrease over Fiscal
1998

Amount

% change

Cosmetics
Toiletries
Others

463.0
98.0
59.0

457.3
99.3
64.2

5.6
-1.3
-5.2

+1%
-1%
-8%

Net Sales

620.0

620.9

-0.9

0%


Overseas Sales

100.0

92.2

7.7

+8%

Share in Net Sales

16.1%

14.9%

Consolidated Income

(Billions of yen)

Fiscal 1999
(Estimate)

Percent
of
Net Sales

Fiscal 1998
(Results)

Percent
of
Net Sales

Increase/Decrease over
Fiscal 1998

Amount

% change

Income from
Operations

32.0

5.2%

38.1

6.1%

-6.1

-16%

Ordinary Income

34.0

5.5%

40.6

6.6%

-6.6

-16%

Net Income

8.0

1.3%

16.8

2.7%

-8.8

-53%

Consolidated
Net Income/
Nonconsolidated
Net Income

0.67 times

1.05 times

Note: Figures for income from operations and ordinary income for fiscal 1998 have been adjusted to reflect a revision in regulations covering consolidated financial statements.

Nonconsolidated Net Sales

(Billions of yen)

Fiscal 1999
(Estimate)

Fiscal 1998
(Results)

Increase /Decrease over Fiscal
1998

Amount

% change

Cosmetics
Toiletries
Others

257.0
90.0
23.0

288.0
89.8
25.5

-31.0
0.1
-2.5

-11%
0%
-10%

Net Sales

370.0

403.4

-33.4

-8%

Note: Transaction prices with sales subsidiaries were revised in October 1998. If the new prices were reflected in the above table, the decrease over fiscal 1998 would be 3% for cosmetics sales and 3% for net sales.

Nonconsolidated Income

(Billions of yen)

Fiscal 1999
(Estimate)

Percent
of
Net Sales

Fiscal 1998
(Results)

Percent
of
Net Sales

Increase/Decrease over
Fiscal 1998

Amount

% change

Income from
Operations

23.0

6.2%

27.3

6.8%

-4.3

-16%

Ordinary Income

31.0

8.4%

33.0

8.2%

-2.0

-6%

Net Income

12.0

3.2%

16.0

4.0%

-4.0

-25%

Per Share Information and Financial Ratios

Fiscal 1999
(Estimate)

Fiscal 1998
(Results)

Increase/Decrease
over Fiscal 1998

Return on Equity (%):
Consolidated
Nonconsolidated


1.94%
3.21%


4.21%
4.47%


-2.27%
-1.26%

Net Income per Share (Yen):
Consolidated
Nonconsolidated


19.01
28.51


40.15
38.25


-21.14
-9.74

Payout Ratio
(nonconsolidated)

49.1%

34.9%

14.2%

Dividends per Share (Yen):
Interim
Year-End


7.00
7.00


6.25
7.00


0.75
-



[ Next ]