Net Sales, Operating Income, and Operating Margin1
Net Income (Loss) per Share2 and Return on Equity3, 4
Interest-Bearing Debt and Interest-Bearing Debt Ratio3, 5
EBITDA6 and Free Cash Flow
Net Sales by Reportable Segment1, 7, 8, 10, 11, 12
Operating Profitability by Reportable Segment1, 7, 9, 10, 11, 12
- The fiscal year ended December 31, 2015 is the 9 months from April 1, 2015 to December 31, 2015 for Shiseido and its consolidated subsidiaries in Japan and the 12 months from January 1, 2015 to December 31, 2015 for all other subsidiaries. In this report, it is referred to as "the year ended December 2015" in the text and as "2015/12" in tables, charts, and graphs.
- Net income (loss) per share is calculated before dilution based on the average number of shares outstanding during the fiscal year/period.
- The Shiseido Group subsidiaries in the Americas formerly recognized samples and promotional items associated with marketing activities at stores as assets when acquired and expensed them when shipped to customers. However, effective the year ended March 2012 these subsidiaries began to expense these items when acquired as part of its efforts to standardize Group accounting policies. The Shiseido Group applied this change retrospectively and restated the figures for the year ended March 2011 accordingly. Effective from the fiscal year ended March 31, 2014, certain subsidiaries of the Shiseido Group's retrospectively adopted a new standard for Employee Benefits (IAS 19, amended June 16, 2011) and changed the method for recognizing changes in net defined benefit obligation. The Shiseido Group applied this change retrospectively and restated the consolidated financial statements for the fiscal year ended March 31, 2013, accordingly.
- For calculating consolidated ROE for the period ended December 2015, the numerator used is net income attributable to owners of parent for the nine months ended December 31, 2015 for Shiseido and its consolidated subsidiaries whose fiscal year ended in March, and for the 12 months ended December 31, 2015 for consolidated subsidiaries whose fiscal year ended in December. The ROE is 7.6 percent when calculated based on net income attributable to owners of parent for the 12 months ended December 2015.
- Interest-bearing debt ratio = Interest-bearing debt / Invested capital* *Invested capital = Interest-bearing debt + Equity
- EBITDA (Earnings before interest, tax, depreciation and amortization) = Income (loss) before income taxes + Interest expense + Depreciation and amortization expense + Impairment loss on goodwill and other intangible assets
- Domestic Professional Division sales are included in the Global Business segment.
- Net sales by reportable segment represent sales to external customers only and do not include intersegment/interarea sales or transfers.
- Operating margin by reportable segment does not include eliminations/corporate.
- Segments were changed to reflect application of the "Revised Accounting Standard for Disclosures about Segments of an Enterprise and Related Information" (ASBJ Statement No. 17 of March 27, 2009) in the year ended March 2011. The change in segments has been retrospectively applied to data for years ended March 2010 and earlier.
- The Company partially revised its reportable segment classification method effective from the period ended December 2015. Accordingly, the "Domestic Cosmetics Business" and "Global Business" segments were reclassified as the "Japan Business" and "Global Business" segments, respectively. Taking into account this change, certain subsidiaries previously included in the "Domestic Cosmetics Business" segment were reallocated to "Global Business" and "Others". Moreover, in order to more accurately grasp actual operating results in each segment, the allocation method for certain expenses was also revised.
- Effective from the year ended December 2017, the Company has revised its reportable segment classification method in line with the Group's internal financial management structure. As a result, reportable segment classifications have been changed to the "Japan Business," "China Business," "Asia Pacific Business," "Americas Business," "EMEA Business," "Travel Retail Business," and "Professional Business" segments. Segment information for the year ended December 2016 has been restated in line with changes in the method of classifying reportable segments.