Istyle Inc. · TSE:3660
Istyle — Q1 FY2027 Earnings Presentation
56 slides from Istyle's earnings presentation, Nov 9, 2026
Slide 1: Presentation Materials for the 1st Quarter of FY2027
Presentation Materials for the 1st Quarter of FY2027 Nov. 9, 2026 istyle Inc. Stock code: 3660
Slide 2: Apology Regarding Leakage of Personal Information Due to Unauthorized Access
Apology Regarding Leakage of Personal Information Due to Unauthorized Access We sincerely apologize for the considerable inconvenience and concern this incident may cause to all parties involved. Current Status Following the confirmation of unauthorized access to our systems by a third party, we imm
Slide 3: Reference: Performance by Business Segment (Yearly)
【Reference】 Performance by Business Segment (Yearly) Segment Description Sales Distribution Segment Sales Trends FY26 (Unit: Million JPY) Consolidated CAGR: 24.2% Results 81,807 OP 68,768 100% 42,890 56,085 4.6 5.0 Ratio 34,401 3.5 ％ 1.9 -1.3 FY6/22 FY6/23 FY6/24 FY6/25 FY6/26 Marketing CAGR: 15.4%
Slide 4: Overview of Financial Results for the 1st Quarter of FY2027
Overview of Financial Results for the 1st Quarter of FY2027 © istyle Inc. 3
Slide 5: Financial Summary
Q1 / Financial Summary & Key Topics Consolidated Sales YoY +6.4% / Consolidated Operating Profit YoY -17.9% Financial Summary Top line grew steadily YoY across all segments. In the Marketing Solution segment, temporary profit decline due to upfront growth investments—such as expanding brand part
Slide 6: Q1 Highlight
Q1 / Highlight (Unit: Million JPY) Consolidated Revenue increased across all segments. Meanwhile, profit declined temporarily due to forward- Results looking growth investments in the Marketing Solution business. Operating Net sales 19,623 (YoY +6.4 %) profit 853 (YoY -17.9 %) Marketing Sales increa
Slide 7: Progress Against Consolidated Earnings Forecast
Q1 / Progress Against Consolidated Earnings Forecast ⁃ Although progress was slightly softer than expected due to sales shortfalls in the Retail segment (stores) and the Global segment (Hong Kong flagship store), we aim to achieve full-year targets through ongoing improvement measures. Consolidated
Slide 8: Trend in net sales
Trend in net sales ⁃ Record sales and on a growth trajectory. Full-year Forecast 90,000 81,807 68,768 56,085 42,890 3 acquired overseas firms COVID consolidated from Q1. impact start 34,401 32,193 30,950 30,564 Q1 result 28,470 Began overseas E-commerce and wholesale 19,623 businesses in Q3 18,888 1
Slide 9: Trends in segment sales (Quarterly)
Trends in segment sales (Quarterly) ⁃ Sales increased due to solid Marketing Solution business and contribution from Hong Kong flagship store. 5.6% 5.3% 5.4% Consolidated 3.7% 4.3% OP ratio YoY +6.4% YoY Net sales (Unit: Million JPY) 21,646 22,113 429 1,118 1,427 19,606 1,759 19,623 18,442 371 347 -
Slide 10: Marketing Solution: Trends in segment sales (Quarterly)
Marketing Solution Trends in segment sales (Quarterly) ⁃ Net Sales: Revenue increased due to expanding transaction volume with existing brands as well as acquiring new brands that will serve as a foundation for future growth. ⁃ OP%: Decreased YoY due to forward-looking investments in talent and IT i
Slide 11: Retail: Trends in segment sales (Quarterly)
Retail (Online / Offline) Trends in segment sales (Quarterly) ⁃ Net Sales: 【Stores】 Sales to domestic customers remained solid, despite the impact of lower inbound demand and unfavorable weather. 【EC】 Progressing smoothly according to plan. ⁃ OP%: Operating Profit Margin: Remained flat YoY due to up
Slide 12: Domestic and Duty-Free Retail Sales
Retail (Online / Offline) Domestic and Duty-Free Retail Sales ⁃ Aiming to return to a cruising growth trajectory by providing experiential value that is not swayed by external factors. Store Sales (Unit: Million JPY) 10,260 10,121 10,292 9,682 9,714 YoY Inbound/ Duty-free -19.5% customers Domestic c
Slide 13: Global: Trends in segment sales (Quarterly)
Global Trends in segment sales (Quarterly) ⁃ Net Sales: Revenue increased driven by contributions from the HK flagship store, in addition to strong performance in China cross-border EC. OP%: Improved YoY as opening-related expenses for the Hong Kong flagship store incurred in the same period of the
Slide 14: Hong Kong Flagship Store: Challenges and Next Actions
Global Hong Kong Flagship Store: Challenges and Next Actions ⁃ Clarify challenges and execute concrete actions across organizational restructuring and customer attraction. Challenges Next Actions Store Operations and Training Organizational Restructuring • Issues in local management and Shifted ov
Slide 15: Other: Trends in segment sales (Quarterly)
Other Trends in segment sales (Quarterly) ⁃ YoY: Sales and profit down YoY due to restructuring for next-generation growth, tracking to plan. ⁃ QoQ: Sales and profit down QoQ as 4Q gain on investment securities dissipated. 11.4% 7.9% 3.5% 4.4% OP margin 0.9% YoY -2.4% Net sales YoY (Unit: Million JP
Slide 16: Trends in SG&A expenses (Quarterly)
Trends in SG&A expenses (Quarterly) ⁃ SG&A ratio rose due to upfront investments in talent and IT infrastructure. 39.2% 38.0% 38.1% SG&A margin 36.9% 36.4% YoY +9.8% SG&A YoY (Unit: Million JPY) 7,980 8,043 7,699 7,011 7,467 1,601 1,373 1,555 1,356 +5.3% Other costs 1,287 Merchandising- * 2,913 rela
Slide 17: Marginal profit (Quarterly)
Marginal profit* (Quarterly) ⁃ Marginal profit margin: Slightly improved YoY on sales contribution from HK flagship store. 29.3% 29.2% 29.5% 28.6% 26.6% Marginal profit margin YoY +7.3% YoY Marginal profit 6,331 (Unit: Million JPY) 5,400 5,758 5,732 5,793 1,201 -17.9% 800 1,045 853 Operating Profit
Slide 18: Trends in operating profit by segment (Quarterly)
Trends in operating Profit by segment (Quarterly) ⁃ Temporary YoY profit decline due to growth investments in Marketing Solution. 5.6% 5.3% 5.4% 4.3% Consolidated 3.7% OP margin YoY -17.9% YoY Operating Profit 1,039 800 1,045 1,201 853 (Unit: Million JPY) 128 13 16 34 3 -75.0% Other 860 937 998 804
Slide 19: Status of Operating Services
Status of Operating Services © istyle Inc. 18
Slide 20: Total User Actions
KPI Total User Actions ⁃ Maintains a growth trajectory, with steady growth in user actions. Monthly trend in Total User Actions* (* Number of users taking action × Number of actions per user) 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 Abnormal values due to
Slide 21: Trend in number of @cosme's members
KPI Trend in number of @cosme’s members* ⁃ Membership continues to trend up. 11.8 million 9.9 million * Number of members registered as users on @cosme, which is different from paid members such as premium members. © istyle Inc. 20
Slide 22: Stores: New Store Openings and Expansions
Retail (Online / Offline) Stores: New Store Openings and Expansions *As of end of October, 2026 ⁃ Re-entered Kyoto; expanded sales floor area via renovations and expansions in prime commercial areas. New Store Expansion 37 stores nationwide （As of end of October, 2026） Kyoto Kawaramachi OPA Yurakuch
Slide 23: Progress on Three Growth Strategies
Progress on Three Growth Strategies © istyle Inc. 22
Slide 24: istyle's Growth Strategy and Outlook
istyle’s Growth Strategy and Outlook ⁃ Expanding touchpoints between consumers and brands to reduce reliance on @cosme Three Growth Strategies for istyle's Future Updating @cosme Expanding into New Areas Establishing a New Beauty Ecosystem Media Other beauty areas New Areas Social Event Media Aging
Slide 25: Key Initiatives Over the Past Year
istyle’s Growth Strategy and Outlook: Key Initiatives Over the Past Year ⁃ Executing initiatives across strategic areas to build a future growth foundation, alongside talent and system upgrades. Three Growth Strategies for istyle's Future Updating @cosme Expanding into New Areas Establishing a New B
Slide 26: Tokyo Beauty Week 2026
Updating @cosme Major Industry Co-Creation Event: Tokyo Beauty Week 2026 Expanding into New Areas Establishing a New Beauty Ecosystem ⁃ Year 2, returning to Harajuku and Omotesando with bigger scale and richer content. Event Overview - Dates: Wed, Nov 18, 2026 – Tue, Nov 24, 2026 [7 days] - Venues:
Slide 27: 4-Way Strategic Alliance: JAPAN FOOD BEAUTY ALLIANCE Formed
Updating @cosme 4-Way Strategic Alliance: JAPAN FOOD BEAUTY ALLIANCE Formed Expanding into New Areas Establishing a New Beauty Ecosystem ⁃ Co-creating food × beauty to revitalize the inner beauty market. Alliance Overview Background High-performance ingredients rarely reach consumers in a beauty con
Slide 28: Progress on Key Global Expansion Initiatives
Updating @cosme Progress on Key Global Expansion Initiatives Expanding into New Areas Establishing a New Beauty Ecosystem ⁃ Rolling out initiatives across regions to lay the foundation for overseas growth. Hong Kong China Taiwan @cosme HONG KONG; Promoting J-Beauty at Asia’s Establishing an advanced
Slide 29: Reference: A Nationwide Effort to Revitalize J-Beauty
【Reference】 A Nationwide Effort to Revitalize J-Beauty ⁃ Public, private, and government sectors unite to strengthen J-Beauty’s global competitiveness. Government Initiatives Tokyo's Innovation Creation Project: to Revitalize J-Beauty "TiB CATAPULT" METI: Announces a target of 2 trillion JPY June 20
Slide 30: Q&A
Q&A © istyle Inc. 29
Slide 31: Anticipated Questions and Answers
Anticipated Questions and Answers Anticipated Questions Answers Q1 trended slightly soft due to domestic stores and HK flagship. Feasibility of Achieving Consolidated Marketing Solution remains solid despite brand budget shifts. Full-Year Targets HK stores challenges are clear; aiming to retur
Slide 32: Appendix
Appendix ‣ Company Information ‣ Segment Information ‣ Mid-Term Business Policy © istyle Inc. 31
Slide 33: Company information
Company information Corporate name istyle Inc. Listed stock exchange/ securities code Listed on the Prime Market of the Tokyo Stock Exchange / 3660 Chairperson and CEO Tetsuro Yoshimatsu President and COO Hajime Endo Date of establishment July 27, 1999 Headquarters 1-12-32 Akasaka, Minato-ku, Tokyo,
Slide 34: Main subsidiaries and affiliates
Main subsidiaries and affiliates Domestic Overseas istyle retail Inc. istyle China Co.,Limited. Operation of Cosmetics specialty store “@cosme STORE” Import/export, sale, and marketing support for and Cosmetics specialty E-commerce “@cosme SHOPPING” cosmetics manufacturers istyle trading Inc. istyle
Slide 35: History
History 1999 Jul Limited company I-Style Co., Ltd. Founded Dec Launched @cosme, a cosmetics portal site 2000 Apr I-Style Co., Ltd. becomes istyle Inc., a joint-stock corporation 2002 Nov Opened cosmetics online shopping site cosme.com（now @cosme SHOPPING) and started operating of E-Commerce 2007 Mar
Slide 36: Award History (Extract)
Award History (Extract) Nikkei Inc. World Economic Forum 2002 Nikkei Internet Award 2014 Global Growth Company (Business Category) Organization for Small & Medium Enterprises and Regional Innovation 2003 Japan Venture Award 2017 Forbes Japan Women Award (Grand-Prix 2nd Place) 2014-2017 Japan Technol
Slide 37: Utilized consumer data to build Japan's No. 1 beauty platform
Utilized consumer data to build Japan’s No. 1 beauty platform No.1 in Online Media MAU: 15 million Used every month by many women in their 20s and 30s Users Products Reviews Sales data No.1 in E-commerce No.1 in Physical Store 53,000 SKUs. Domestic physical stores: 37 （As of Oct. 2026） * Figures are
Slide 38: Japan's largest level comprehensive beauty site @cosme
Japan’s largest level comprehensive beauty site @cosme ⁃ @cosme is one of the Japan’s largest comprehensive beauty site supported not only by users, but many other stakeholders (e.g. brands) as well. Used every month Mainly women aged 20 Covers almost every Expanding beyond Japan’s leading site by m
Slide 39: @cosme / Overwhelming usage ratio by female members
@cosme / Overwhelming usage ratio by female members - Roughly 15 million monthly unique users use @cosme portal site. (As of Jun. 2026) - Massive reach among Japanese female members in their 20s and 30s. Breakdown of monthly unique users @cosme smartphone users (women only) as percentage of Japanese
Slide 40: Database soundness
Database soundness - Each measure ensures that the database is sound User @cosme Cosmetics Brands Cosmetics Users Brands Review posts DB Chinese Wall Checking System Fair ranking system, 1. Personal authentication using undisclosed Ad placement 2. Clarify whether the item reviewed was algorithms pur
Slide 41: Sustainability Materiality - Main Efforts
SUSTAINABILITY MATERIALITY - Main Efforts Materiality 01 Materiality 02 Trusted platforms Co-creation through partnership - Operate sound and independent review media (@cosme Declaration) - Foster awareness of sustainability among consumers - Strengthen information security - Strive toward a recycli
Slide 42: Management Team and Skill Matrix
Management Team and Skill Matrix (as of Sep. 2026) ⁃ Management team structured around skills essential for achieving mid-term business goals (For details and rationale) Among skills held by each officer, the Company has particular expectations for the below Attributes Term Position/ Strengthening t
Slide 43: Overview of Human Capital Management
Overview of Human Capital Management ⁃ The purpose of our human capital management is "To foster people who continue to update the world of BEAUTY, becoming a company that is consistently chosen." № Purpose Topic Issues (Focus Points) Countermeasures Indicators ・Ratio of those who think that the Com
Slide 44: DE&I (Diversity, Equity, and Inclusion)
DE&I (Diversity, Equity, and Inclusion) ⁃ To navigate a complex society, we offer systems that support “individualized ways of working” and “promote growth through self-driven choices.” "iselect": a system enabling everyone to thrive, regardless of gender or life stage. Focusing on maximizing indivi
Slide 45: Overview of Climate Change Initiatives
Overview of Climate Change Initiatives ⁃ Aiming for a carbon-neutral society, we are focusing on climate change initiatives across the entire company. ＜Risks and Opportunities＞ ＜CO₂ emission＞ Classification Based on TCFD Potential Risks and Opportunities (Unit: t-CO²) FY24 FY25 2030 Target Recommend
Slide 46: Appendix
Appendix ‣ Company Information ‣ Segment Information ‣ Mid-Term Business Policy © istyle Inc. 45
Slide 47: Marketing Solution: Our business portfolio
Marketing Solution Our business portfolio ⁃ Cross-platform marketing measures (Media, E-commerce, Physical Stores) Tie-up Ads SNS / OTT integration Branding ads for deep consumer insight Fact-based targeting for beauty-interested users audiences @cosme DATA Data integration Social media platforms OT
Slide 48: Retail: Our business portfolio
Retail (Online / Offline) Our business portfolio ⁃ Become operator of service businesses that utilize @cosme Offline retail (retail stores) Online retail (E-commerce) Has become Japan’s leading cosmetics retail Operate cosmetics E-Commerce sites group by operating cosmetics retail stores @cosme SHOP
Slide 49: Store List
Retail (Online / Offline) Store List (Domestic: 37 stores / Overseas: 4 stores) *As of Oct. 2026 *Consolidated from Flagship stores︓3stores (2 directly managed stores, Japan) Q2 FY23 Kanto Chubu Kinki Opened in Jan. 2020 SYDNEY by @cosme Opened in Oct. 1978 Tokyo Komachi Opened in Sep. 2006 179㎡ 1,3
Slide 50: Global: Our business portfolio
Global Our business portfolio ⁃ Adapt and extend the business model established in Japan to align with the conditions of each country and region. China Taiwan HK Korea Media Official local social media account E-commerce Wholesale Retail Stores * Consolidated basis (does not include minor investment
Slide 51: Appendix
Appendix ‣ Company Information ‣ Segment Information ‣ Mid-Term Business Policy © istyle Inc. 50
Slide 52: Overview of Mid-term Business Policy
Overview of Mid-term Business Policy (Formulated in FY25) ⁃ Formulated a business policy for the next four to five years. Aim for further growth and business domain expansion as a unique, one-of-a-kind platform provider in the beauty industry. Mid-term Business Policy <Existing Businesses> Increas
Slide 53: Mid-term Business Targets (Financial Targets, Growth)
Mid-term Business Targets (Financial Targets, Growth) ⁃ In addition to continuous increase in sales and profit, raise consolidated OP margin, with strong foundation of businesses in Japan as the core. ⁃ Target period for this goal is set at a range of 4 to 5 years, in light of the fact that new stor
Slide 54: Mid-term Business Targets (Capital Profitability)
Mid-term Business Targets (Capital Profitability) ⁃ Aim for capital profitability that exceeds cost of equity in line with TSE’s Action to Implement Management that is Conscious of Cost of Capital and Stock Price. <Assumed Cost of Equity> <Capital Profitability> (As of June 2026) CAPM 12-13% ＜ ROE F
Slide 55: Shareholder Return Policy
Shareholder Return Policy ⁃ Advance capital policies flexibly balancing financial health to maximize TSR. Shareholder Return Policy Plan to raise FY27 dividend from ¥1 to ¥2 as profit generation stabilizes Increase stable shareholders by attracting investors who do not invest in companies that d
Slide 56: Disclaimer
The purpose of this document is to provide information on our financial results and does not constitute an offer to sell or solicitation of an offer to purchase any investment security issued by istyle. The information and outlook contained in this document have been compiled, based on istyle’s judg