Shiseido Company (4911) Investor update summary

Board oversight and strategic direction

• Board discussions have shifted from structural reform to implementing and monitoring the 2030 growth strategy, focusing on adapting to changing business conditions and capturing early signals for course correction.

• Monitored growth and identified challenges after six months of executing the 2030 strategy, supporting risk-taking and growth investments.

• Emphasis on leveraging AI and the FOCUS program to enhance productivity and enterprise value, with ongoing monitoring of data integration and AI-driven initiatives.

• Board actively reviews and pushes back on management strategies, ensuring alignment with long-term value creation and requesting simulations for divestitures and growth scenarios.

Profitability, risk management, and operational improvements

• Profitability improvements are underway, with systematic cost reduction and clearer reporting lines to enhance productivity and capital efficiency.

• Board closely oversees geopolitical, supply chain, and cybersecurity risks, prioritizing agile responses and continuous improvement in risk mitigation.

• Audit Committee members directly engage with global sites to ensure effective implementation of operational improvements.

M&A, portfolio strategy, and brand value

• M&A discussions now focus on post-acquisition value creation and lessons learned from past deals, with a shift from opportunistic acquisitions to strategic, capability-driven investments.

• Board evaluates whether growth opportunities should be pursued internally or through external assets, emphasizing alignment with core strengths and long-term vision.

• Efforts are underway to better connect individual brand strengths to the overall corporate brand, with the CEO committed to enhancing the corporate value story.