Consolidated Interim Settlement of Accounts
for the First Half of 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 mid-term accounting report are prepared in accordance with the accounting principles based on Japanese law. Accordingly, they do not necessarily match the figures in the Interim Report 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 for Interim Fiscal 1998 (April 1 - September 30, 1997)

*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 (%)
First Half of Fiscal 1998 310,470 (9.6) 20,179 (15.6) 21,948 ( 9.3)
First Half of Fiscal 1997 283,227 ( - ) 17,449 ( - ) 20,089 ( - )
Fiscal 1997 588,571 36,851 40,979

Net Income Net Income per
Share (Yen)
Criterion of
Accounting Methods
mil. yen (%) yen
First Half of Fiscal 1998 9,408 ( - ) 22.56 Basis of Consolidated
Financial Statements
First Half of Fiscal 1997 - ( - ) - -
Fiscal 1997 19,152 47.55 Basis of Consolidated
Financial Statements
Note:Losses from investment in subsidiaries and affiliates accounted for by the equity method in the first half of fiscal 1998 were 15 million yen.


(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
First Half of Fiscal 1998 646,850 408,104 63.1 964.00
First Half of Fiscal 1997 - - - -
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: 60
Main consolidated subsidiaries: Osaka Shiseido Co., Ltd.
Shiseido Kako Co., Ltd.
Shiseido Sales Co., Ltd.
Shiseido Cosmenity Co., Ltd.
Shiseido Fine Toiletry Co., Ltd.
Shiseido International Corporation
    Number of nonconsolidated subsidiaries: 5
    (equity method not applied to these companies.)
    Number of affiliates: 5
    (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.

Helen Curtis Japan Inc.

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.

Excluded consolidated companies:
None.
New Applications of equity method:
None.
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 1998 (April 1, 1997 - March 31, 1998)
(Millions of yen)
Net Sales Ordinary Income Net Income
mil. yen mil. yen mil. yen
Fiscal 1998 630,000 43,000 21,000
Reference : Projected consolidated net income per share is 50.36 yen.
Projected nonconsolidated net income per share is 40.75 yen.

[ Reference Data ]
Nonconsolidated Interim Results for Fiscal 1998 (April 1- September 30, 1997)
(Millions of yen, except for per share figures)
Net Sales Income from Operations Ordinary Income
mil. yen (%) mil. yen (%) mil. yen (%)
205,937 (6.0) 13,570(6.9) 16,906 (5.1)

Net Income Net Income per Share Total Assets Shareholders' Equity
mil. yen (%) yen mil. yen mil. yen
8,506(6.1) 20.39 527,359 367,373



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