For the year ended March 31, 1998

Shiseido Company, Ltd., was founded in 1872 as Japan's first pharmacy endeavoring to combine elements of oriental and occidental cultures. Ever since, the Company has adopted a global perspective, continually developing products while pursuing ongoing advances in quality, technology and innovation. Today, Shiseido is one of the world's top cosmetics companies, with a marketing network covering more than 50 countries and a production system comprising nine facilities in Japan and 11 overseas. Domestically, Shiseido has expanded its business in such areas as cosmetics, toiletries, hair salons, foodstuffs, pharmaceuticals, fashion goods and fine chemicals with the aim of making a significant contribution to people's beauty and health. Overseas, the Company makes and sells exclusive skin-care products and makeup, as well as fragrances and professional hair-care items. By pursuing excellence in “customer benefit,” the Company aims to achieve a position of distinction among consumers worldwide.

Financial Highlights Message from the Management Maximizing Shiseido Value Review of Operations Cosmetics Toiletries Others Research and Development Corporate Citizenship Board of Directors and Auditors Financial Section Six-Year Summary/Divisional Sales Management's Discussion and Analysis Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to the Consolidated Financial Statements Report of Independent Certified Public Acconntants Directory Investor Information