FY2026 Q1: Summary of Financial Results

November 10, 2025

Representative: Tetsuro Yoshimatsu, Representative Director, Chairperson, CEO

Contact: Kei Sugawara, Director, Vice Chairperson, CFO Tel: +81-3-6161-3660 Scheduled date of dividend payment: -

Preparation of supplementary materials for financial results: Yes

Schedule of financial results briefing session: Yes

(All amounts are rounded off to the nearest million yen)

1. Consolidated results of operations (Percentages represent year-on-year changes)

   	Net sales		Operating profit		Ordinary	profit	Profit attributable to owners of the parent company
   	Million yen	%	Million yen	%	Million yen	%	Million yen	%
   Three months ended September 30, 2025	18,442	22.6	1,039	36.4	1,050	25.1	648	7.6
   Three months ended September 30, 2024	15,038	20.8	762	107.1	839	140.5	603	252.0

   Note: Comprehensive income (million yen) Three months ended September 30, 2025: 657 million yen (131.7%)

   Three months ended September 30, 2024: 283 million yen (6.8%)

   	Earnings per share	Diluted earnings per share
   	Yen	Yen
   Three months ended September 30, 2025	7.01	5.34
   Three months ended September 30, 2024	7.65	5.12

   Reference: Total equity	As of September 30, 2025:	19,967 million yen
   2. Dividends	As of June 30, 2025:	15,900 million yen

2. Consolidated financial position

Note: Revisions to most recently announced dividend forecast: None

(Percentages represent year-on-year changes)

Note: Revisions to the most recently announced operating results forecast: None

1. Significant changes in scope of consolidation during the period: None

2. Application of special accounting methods for presenting quarterly consolidated financial statements: None

3. Changes in accounting policies and accounting-based estimates, and restatements

   1. Changes in accounting policies due to revisions in accounting standards, others: None

   2. Changes in accounting policies other than 1) above: None

   3. Changes in accounting-based estimates: None

   4. Restatements: None

4. Number of shares outstanding (common shares)

   1. Number of shares issued (including treasury shares) at end of period As of September 30, 2025: 102,444,967 shares

      As of June 30, 2025: 91,754,577 shares

   2. Number of treasury shares at end of period

      As of September 30, 2025: 2,693,618 shares

      As of June 30, 2025: 2,693,618 shares

   3. Average number of shares outstanding during the period

Three months ended September 30, 2025: 92,498,097 shares

Three months ended September 30, 2024: 78,769,982 shares

• The review by certified public accountants or auditing corporations on the attached Consolidated Financial Statements: None

• Cautionary statement with respect to forecasts and other matters:

  Operating results forecasts and other forward-looking statements in this report are based on assumptions judged to be valid and information available to the Company at the time of the preparation of this report. Actual performance may differ significantly from these forecasts for a number of reasons. For the assumptions underlying the forecasts herein and other notices on the use of operating results forecasts, please refer to 1. Operating Results and Financial Position (3) Consolidated Operating Results Forecast and Information about Future Predictions on page 4 of the accompanying materials. Earnings per share in the consolidated operating results forecast is calculated taking into account the effects of the exercise of stock acquisition rights until the end of October 2025 and the disposal of treasury shares as restricted stock compensation as of October 28, 2025.

• This financial report is solely a translation of the original Japanese "Kessan Tanshin" document, which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

  Accompanying Materials - Contents

  1. Operating Results and Financial Position 2

     1. Analysis of Operating Results 2

     2. Consolidated Financial Position 3

     3. Consolidated Operating Results Forecast and Information about Future Predictions 4

  2. Consolidated Financial Statements and Relevant Notes 5

     1. Consolidated Balance Sheets 5

     2. Consolidated Statements of Income and Comprehensive Income 7

     3. Notes on Consolidated Financial Statements 9

(Notes on the Going-Concern Assumption) 9

(Notes on Significant Changes in the Amount of Shareholders' Equity) 9

(Notes on Segment Information) 10

(Notes on Statements of Cash Flows) 11

In accordance with the Medium-term Business Plan announced in August 2024, the Group aims to achieve consolidated net sales of 100 billion yen and consolidated operating profit of 8 billion yen, which are the medium-term business goals, by increasing points of contact with users and data through the expansion of the Retail segment (e-commerce and retail stores), and monetizing those in the Marketing Solution segment (BtoB services).

For the fiscal year ending June 30, 2026, marking the second fiscal year of the Medium-term Business Plan, the Group positions it as the "Year of Strategic Investments," aiming for a leap into the next phase of growth.

The Group will strive to expand sales, which serve as a source of future operating profit, through the flagship store in Hong Kong, @cosme HONG KONG (scheduled to open on December 5, 2025), in the Global segment, in addition to the overall organic growth in Japan.

Aiming for medium- to long-term growth, investment in new businesses will be increased, in addition to strengthening personnel and system investments in each segment. In the Marketing Solution segment, the Group will focus on hiring consultants in order to make labor-intensive data consulting a core source of new revenue. In the Global segment, returning the business to profitability is expected from the second half of the fiscal year ending June 30, 2026, despite the recording of pre-opening expenses for the flagship store in Hong Kong in the first half.

For the fiscal year ending June 30, 2026, the Group plans to increase operating profit by 20.1% year-on-year, with the operating profit margin expected to remain at the same level as in the previous fiscal year associated with the aforementioned upfront investments. Positioning this fiscal year as a preparatory period for growth from the next fiscal year onward, the Group aims to enhance corporate value over the medium to long term by strengthening the strategic business foundation and expanding investment with a view to future growth.

The consolidated operating performance for the three months ended September 30, 2025 was as follows.

Net sales increased 22.6% year-on-year, driven by the Marketing Solution segment and Retail segment in Japan.

Operating profit increased 36.4%, as the Marketing Solution segment and Retail segment contributed to profit growth as well as to the higher net sales, offsetting the pre-opening expenses for the flagship store in Hong Kong.

As a result, the consolidated operating performance for the three months ended September 30, 2025 was as follows:

Net sales: 18,442 million yen (15,038 million yen in the previous fiscal year; 22.6% year-on-year increase) Operating profit: 1,039 million yen (762 million yen in the previous fiscal year; 36.4% year-on-year increase) Ordinary profit: 1,050 million yen (839 million yen in the previous fiscal year; 25.1% year-on-year increase) Profit before income taxes: 1,050 million yen (839 million yen in the previous fiscal year; 25.1% year-on-year increase)

Profit attributable to

owners of the parent company: 648 million yen (603 million yen in the previous fiscal year; 7.6% year-on-year increase)

1. Marketing Solution segment

   The Marketing Solution segment consists of various services based on the cosmetics and beauty portal site @cosme, including advertising solutions for cosmetics brands and data-driven solutions.

   Net sales increased 27.0% year-on-year due to the increased transaction volume with major and new mid-sized brands, against a backdrop of the successful sales promotion measures utilizing e-commerce and retail stores associated with the expansion of sales volume in the Retail segment.

   Operating profit increased 46.8% due to the contribution of the business model with high marginal profit ratio to the efficient profit expansion.

   As a result, segment operating performance for the consolidated three months ended September 30, 2025 was as follows:

   Net sales: 2,920 million yen (2,298 million yen in the previous fiscal year; 27.0% year-on-year increase) Operating profit: 972 million yen (662 million yen in the previous fiscal year; 46.8% year-on-year increase)

2. Retail segment

   The Retail segment consists mainly of retail services in Japan, including the operation of the domestic cosmetics e-commerce site

   @cosme SHOPPING and operations of @cosme STORE cosmetics specialty shops.

   E-commerce net sales rose 26.4% year-on-year due to the continued acquisition of new customers through platform collaborations. Retail store net sales rose 24.0% due to the growth of the existing stores, in addition to the contribution of new stores, including @cosme NAGOYA. As a result, net sales increased 24.7% in the segment overall.

   Operating profit increased 20.4% due to the contribution of the increased net sales.

   As a result, segment operating performance for the consolidated three months ended September 30, 2025 was as follows:

   Net sales: 14,164 million yen (11,354 million yen in the previous fiscal year; 24.7% year-on-year increase) Operating profit: 860 million yen (714 million yen in the previous fiscal year; 20.4% year-on-year increase)

3. Global segment

   The Global segment consists of business operations outside of Japan, such as e-commerce and wholesale and retail stores, as well as media and other services.

   Net sales increased 0.5% year-on-year in the segment overall due to a recovery in the China cross-border e-commerce business. Operating profit expanded a year-on-year deficit due to the recording of 104 million yen in pre-opening expenses for the flagship store in Hong Kong.

   As a result, segment operating performance for the consolidated three months ended September 30, 2025 was as follows:

   Net sales: 1,004 million yen (999 million yen in the previous fiscal year; 0.5% year-on-year increase) Operating loss: 150 million yen (14 million yen loss in the previous fiscal year)

4. Others

The Others segment consists of a temporary staffing agency for beauty consultants, BtoC subscription service, and investment and consulting projects for companies in various stages of development, including new startups.

Net sales declined 8.2% year-on-year, following the effects of December 2024 termination of BLOOMBOX, one of the BtoC subscription services.

Operating profit declined 79.4% year-on-year due to the upfront expenses for the Supplement segment launched in July 2025, in addition to the aforementioned termination of BLOOMBOX.

As a result, segment operating performance for the consolidated three months ended September 30, 2025 was as follows:

Net sales: 355 million yen (387 million yen in the previous fiscal year; 8.2% year-on-year decrease) Operating profit: 13 million yen (61 million yen in the previous fiscal year; 79.4% year-on-year decrease)

(Assets)

Total assets as of September 30, 2025 amounted to 37,919 million yen, an increase of 3,318 million yen compared with the end of the previous consolidated fiscal year.

Current assets as of September 30, 2025 amounted to 23,961 million yen, an increase of 2,920 million yen compared with the end of the previous consolidated fiscal year. This result was mainly due to a 1,104 million yen increase in cash and deposits, a 148 million yen increase in notes and accounts receivable - trade and contract assets, and a 1,366 million yen increase in merchandise.

Non-current assets as of September 30, 2025 amounted to 13,958 million yen, an increase of 398 million yen compared with the end of the previous consolidated fiscal year. This was mainly due to an increase of 496 million yen in tangible assets, despite a decrease of 34 million yen in investment securities.