SHISEIDO Presentation on Acquisition of Bare Escentuals, Inc. Shinzo Maeda President & CEO, Shiseido Co., Ltd. January 15, 2010 1

1 Overview of Sales/Profits Post Transaction 2 Overview of Bare Escentuals, Inc. 3 Significance of this Acquisition 4 Overview of the Transaction and Financial Impact 2

SHISEIDO Overview of Sales/Profits Post Transaction (1/2) Shiseido Bare Escentuals Pro-Forma (3/09) (12/08) (Simple Sum) Amount Margin Amount Margin Amount Margin Sales 690.3 - 57.5 - 747.8 - Operating Income 49.9 7.2% 18.1 31.5% 68.0 9.1% Net Income 19.4 2.8% 10.1 17.6% 29.5 3.9% *Translated to yen based on our 3/09 exchange rate (1/08 - 12/08 average) of $1=103.44 yen Move on to a new stage to become a "Global Player Representing Asia with its Origins in Japan" (Note) The above numbers represent the simple sum and do not include any consolidation adjustments. 3

SHISEIDO Overview of Sales/Profits Post Transaction (2/2) Overseas 38% Asia / Oceania 17% Japan 62% Americas 8% Europe 13% Before Transaction (3/09 Shiseido Consolidated) Overseas 42% Asia / Oceania 16% Japan 58% Americas 14% Europe 12% Post Transaction (simple sum) (Note1) The above numbers represent the simple sum and do not include any consolidation adjustments. (Note2) Japan segment of the post transaction include non-US operation of Bare Escentuals. 4

1 Overview of Sales/Profits Post Transaction 2 Overview of Bare Escentuals, Inc. 3 Significance of this Acquisition 4 Overview of the Transaction and Financial Impact 5

SHISEIDO Overview of Bare Escentuals, Inc. Name: Bare Escentuals, Inc. Founded: 1976 Location: California, United States Businesses: Manufacturing and distribution of cosmetics Employees: 2,779 (as of December 28, 2008) Key Brands: Mineral foundation "bareMinerals" Business Model: 1. Direct marketing such as through TV shopping channels 2. Selling at stores (department stores and company-owned boutiques) 6

SHISEIDO Bare Escentuals, Inc. Products Make-up Skin Care bareMinerals RareMinerals Buxom and bareVitamins md formulations 7

SHISEIDO Business Model TV shopping Boutique Bare Escentuals has built a new business model that actively utilizes direct marketing channels such as TV shopping and at the same time aims to secure customers through promoting its products in department stores and company-owned boutiques 8

SHISEIDO Ms. Leslie Blodgett (Director and CEO) Biography Prior to joining BE, she worked for Neutrogena, P&G and Max Factor 1995: Launched bareMinerals cosmetics line 1997: Introduced Bare Escentuals through QVC 2006: IPO of Bare Escentuals Appearing on TV shopping programs herself, she is the public face of Bare Escentuals, Inc. Leslie will continue in her management role after consummation of Tender Offer 9

SHISEIDO Financial Overview of BE (in 100 millions of US$) Sales Operating Income Net Income (Right axis: OP Margin) (Right axis: NP Margin) 600 500 400 300 200 100 0 395 511 556 12/06/12/07 /12/08 200 160 120 80 40 0 139 169 175 35.2% 33.1% 31.5% 12/06 12/07 12/08 100% 80% 60% 40% 20% 0% 100 80 60 40 20 0 50 88 98 12.7% 17.2% 17.6% 12/06 12/07 12/08 100% 80% 60% 40% 20% 0% Strong sales and profit growth 10

1 Overview of Sales/Profits Post Transaction 2 Overview of Bare Escentuals, Inc. 3 Significance of this Acquisition 4 Overview of the Transaction and Financial Impact 11

SHISEIDO Our Long - term Vision To Become a "Global Player Representing Asia with its Origins in Japan" Hurdles as global player Boosting its growth potential in markets around the world to achieve higher growth than the global cosmetics market Transforming the management culture to continue generating ROE and operating margin comparable to those of global competitors 12

SHISEIDO Benefits of the Acquisition (1/3) Acquisition of new brand value Bare Escentuals Pioneer in mineral-based cosmetics popular among natural-minded consumers Leading share in the mineral foundation market Partnership Shiseido Established mega-lines and relationship-building lines as its two pillars in Japan Strengthening its brand strategy overseas centering on the global brand "SHISEIDO" and BPI's designers fragrance brands The transaction will enable us to build a competitive brand portfolio that can accurately respond to a wide range of customer needs 13

SHISEIDO Benefit of the Acquisition (2/3) Strong complementary relationship for distribution, sales, and research and development Bare Escentuals Active use of direct marketing Securing customers through department stores and company-owned boutiques Owning distribution/sales channels infrastructures in North America Mutual use of distribution and sales infrastructures Shiseido Built the largest distribution network of prestige cosmetics in Japan Also expanding sales channels in the Chinese market Advanced R&D capabilities Expand contact points with a variety of customers Improve the productivity of distribution/sales infrastructures Utilizing our R&D capabilities with particular focus on skin care 14

SHISEIDO Benefit of the Acquisition (3/3) Strengthening operational bases in North America Strong market presence of Bare Escentuals, Inc. in North America Strong brand awareness through the direct marketing efforts 800 retail outlets and 1,500 spa salons in the United States Improve our presence in North America 15

1 Overview of Sales/Profits Post Transaction 2 Overview of Bare Escentuals, Inc. 3 Significance of this Acquisition 4 Overview of the Transaction and Financial Impact 16

SHISEIDO Outline of the Acquisition Method Tender offer by a special purpose acquisition company to be established under "Shiseido Americas Corporation," our subsidiary Offer Price $18.2 per share (40.8% premium to the 3-month average price) Acquisition Cost(assuming 100% acquisition $1.7bn (160bn yen) Deal value including target debt $1.9bn (180bn yen) Offer Period We expect the offer to commence in late January (within 10 business days from announcement) and to be open for 30 business days, subject to possible extensions and a subsequent offer period Other Transaction has been approved by the Board of Directors of Bare Escentuals 17

HISEIDO Financing for the Acquisition Financing will be a combination of cash and cash equivalents at hand(30bn yen)and a bank bridge loan(150bn yen) Optimal financing selected from a range of options, after taking into consideration the business condition, financial position and market trends 18

SHISEIDO Impact on Consolidated Performance Sales and profits will be consolidated from the year ending March 2011 Project team will be established immediately after consummation of the tender offer Discuss and determine specific policies and execution plans to maximize the acquisition synergies at an early stage Details to be announced at the appropriate time as soon as they are determined 19

SHISEIDO Shareholder Return Pre-Acquisition Strategic investments leading to new growth, consistent dividend payment and flexible share buybacks If no M&A transactions are pending, priority placed on shareholder return Pay stable cash dividends and buy back and retire treasury stocks flexibly, focusing on achieving a total return ratio target of 60% for medium term 20

SHISEIDO Shareholder Return Post-Acquisition Changing situation given the large acquisition of Bare Escentuals (Shareholder Return Post-Acquisition) Taking into consideration the changes from the acquisition, we may need to review the policy of "total return ratio of 60% for medium-term" Will continue focusing on maintaining consistent dividends and increasing dividends linked to profit increases 21

SHISEIDO Our Future Goal Sustained growth as a global player representing Asia with its origins in Japan Previous Three-Year Plan Establish foundation as a global player FY 2005 Three-Year Plan Phase 1 Improve quality of activities across the board Establish an undisputed presence in Asia FY 2008 FY 2011 Phase 2 Get into growth trajectory Phase 3 Make a leap forward Become a global player FY 2014 FY 2017 FY2017: Net sales in excess of (Y)1 trillion (over 50% overseas sales); Consistently generate solid operating margins (12% or higher); ROE comparable to that of global competitors (15% or higher) 22

SHISEIDO International Efforts 1. Growth Strategy in the Global Markets Renovation of the global brand Active investments in growing markets such as China Entry into untapped markets 2. Management to Respond to Accelerated Globalization Strengthening operation platforms in countries already entered into Upgrading HR development program globally Introduction of a core information system 23

SHISEIDO Our Vision for the Next Step Europe Designers Fragrance Brands of BPI Asia Global Brand "SHISEIDO" North America Bare Escentuals -Continue to be a company driven by the business expansion in Asia, particularly China -Have multiple major global brands being rolled out worldwide -Increase presence in Europe and North America The True Global Player Representing Asia 24

SHISEIDO This moment. This life. Beautifully. 25

SHISEIDO The tender offer to which this presentation relates has not yet commenced, and this presentation is neither an offer to purchase, nor a solicitation of an offer to sell any securities. Stockholders of Bare Escentuals are advised to read the Tender Offer Statement on Schedule TO, the offer to purchase and any other documents relating to the tender offer that are filed with the Securities and Exchange Commission (the "SEC") when they become available because they will contain important information. Stockholders of Bare Escentuals may obtain copies of these documents for free, when available, at the SEC's website at www.sec.gov or at the Shiseido's website at http://www.shiseido.co.jp/e/ir/ir_news/index.htm. 26