Pola Orbis : Summary of Financial Results for Fiscal 2025 First Half

For the First Half of the Fiscal Year Ended December 31, 2025 (Consolidated)

These financial statements have been prepared in accordance with accounting principles and practices generally accepted in Japan. The following English translation is based on the original Japanese-language document.

August 6, 2025

Listing: Tokyo Stock Exchange, Prime Market (Code No.: 4927) URL: https://www.po-holdings.co.jp/

Representative: Yoshikazu Yokote, Representative Director And President

Contact: Naoki Kume, Director, Finance Tel: +81-3-3563-5517

Filing Date of Semi-annual Securities Report: August 12, 2025

Start of Cash Dividend Payment: September 5, 2025

Supplemental Materials Prepared for Financial Results: Yes

Conference Presentation for Financial Results: Yes(for analysts)

(Amounts less than one million yen have been truncated)

1. Consolidated Performance for the First Half of Fiscal 2025

   (January 01, 2025-June 30, 2025)

   1. Consolidated Operating Results

      (Percentage figures indicate year-on-

      year change)

      	Net Sales		Operating Income		Ordinary Income		Profit Attributable to Owners of Parent
      FY2025 First Half FY2024 First Half	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      	83,253 83,836	(0.7) (2.3)	8,217 7,316	12.3 (18.4)	6,282 11,121	(43.5) (2.4)	4,643 7,500	(38.1) 1.3

      Note: Comprehensive income: ¥5,644 million (-4.0%) for the first half ended June 30, 2025;

      ¥5,882 million (-9.1%) for the first half ended June 30, 2024

      	Net Income Per Share	Diluted Net Income Per Share
      	Yen	Yen
      FY2025 First Half	20.99	20.97
      FY2024 First Half	33.90	33.86

   2. Consolidated Financial Position

      	Total Assets	Net Assets	Equity Ratio	Net Assets Per Share
      	Millions of yen	Millions of yen	%	Yen
      FY2025 Second Quarter	195,937	163,697	83.4	738.65
      FY2024	200,320	164,916	82.2	744.16

      Reference: Equity capital: FY2025 Second Quarter: ¥163,439 million; FY2024: ¥164,656 million

2. Dividends

   	Annual Cash Dividends Per Share
   	Q1-end	Q2-end	Q3-end	Year-end	Total
   FY2024 FY2025	Yen	Yen	Yen	Yen	Yen
   	- -	21.00 21.00	-	31.00	52.00
   FY2025 (Forecast)			-	31.00	52.00

   Note: Revisions to the cash dividends forecast announced most recently: none

3. Consolidated Performance Forecast for Fiscal Year Ended December 31, 2025

   (January 01, 2025-December 31, 2025)

   (Percentage figures indicate year-on-year change)

   	Net Sales		Operating	Income	Ordinary Income		Profit Attributable to Owners of Parent		Net Income Per Share
   	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   Full year	174,000	2.1	14,500	5.0	14,700	(8.6)	8,500	(8.5)	38.42

   Note: Revisions to the consolidated performance forecast announced most recently: yes

   Notes to Summary Information

   1. Changes in significant subsidiaries during the current period

      (Changes in specific subsidiaries resulting in changes in the scope of consolidation) : None

   2. Application of special accounting methods for the preparation of semi-annual consolidated financial statements : None

   3. Changes in accounting policies, accounting estimates, and restatement

      1. Changes in accounting policies associated with revision of accounting standards : Yes

      2. Changes other than (3)-1) : None

      3. Changes in accounting estimates : None

      4. Restatements : None

   4. Number of shares issued and outstanding (common stock)

      1. Number of shares issued and outstanding at the end of each period (including treasury stock) At June 30, 2025 229,136,156 shares

         At December 31, 2024 229,136,156 shares

      2. Number of shares of treasury stock at the end of each period

         At June 30, 2025 7,869,047 shares

         At December 31, 2024 7,870,726 shares

      3. Average number of shares issued and outstanding in each period Six months ended June 30, 2025 221,268,033 shares

Six months ended June 30, 2024 221,252,128 shares

Note: The number of shares of treasury stock at the end of each period includes the Company's shares held by the officer compensation Board Incentive Plan (BIP) trust (344,910 shares at June 30, 2025, 344,998 shares at December 31, 2024). The number of shares of treasury stock deducted in the calculation of average number of shares outstanding during each period includes the Company's shares held by BIP trust (343,533 shares in the six months ended June 30, 2025, 242,832 shares in the six months ended June 30, 2024).

Information Regarding Review Procedures

Semi-annual financial results report are exempt from review by certified public accountants or accounting firms.

Explanation of Appropriate Use of Performance Forecast and Other Special Items

This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual performance may differ materially from these projections resulting from changes in the economic environment and other risks and uncertainties. For performance projections, please refer to "1. Qualitative Information on Consolidated Performance for the First Half of Fiscal 2025 (3) Explanation of Consolidated Performance Forecast and Other Predictive Information" on page 5.

Table of Contents

1. Qualitative Information on Consolidated Performance for the First Half of Fiscal 2025 2

   1. Explanation of Consolidated Operating Results 2
   2. Explanation of Consolidated Financial Position ………………………………………………………… 4
   3. Explanation of Consolidated Performance Forecast and Other Predictive Information 5

2. Semi-annual Consolidated Financial Statements 6

   1. Consolidated Balance Sheets 6
   2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 8
   3. Notes to Consolidated Financial Statements 10

1. Qualitative Information on Consolidated Performance for the First Half of Fiscal 2025
   1. Explanation of Consolidated Operating Results

During the first half of fiscal 2025 (January 1, 2025-June 30, 2025), despite a continuous moderate recovery in the Japanese economy, factors such as trade policies in the United States have led to market uncertainties. In terms of personal consumption, although consumer sentiment declined mainly due to ongoing price hikes, there are signs of recovery thanks to continued improvements in the employment and income environment.

In the domestic cosmetics market, performance has continued to exceed that of the previous year thanks to the moderate economic recovery. Inbound demand continued to grow despite the continuing appreciation of the yen, but has now turned negative. In the Chinese market, although various policy measures are becoming effective, the economy has remained stagnant.

Within this market environment, as part of its medium-term management plan (from 2024 through 2026) that started in 2024, the POLA ORBIS Group (the "Group") implemented four business growth strategies, namely, "strengthen the customer base in the domestic business to achieve sustainable growth and improve profitability," "further grow the overseas business and establish business bases in new markets," "achieve profitability through growth in brands under development, contributing to sustainable earnings," and "enhance the brand portfolio and expand business domains." At the same time, in an effort to sustainably strengthen the management foundations that will support these strategies, the Group has worked to "strengthen R&D capabilities for new value creation" and "strengthen sustainability combining the resolution of social issues with uniqueness."

As a result of the above, the Group's consolidated operating results for the first half of fiscal 2025 were as follows. Consolidated net sales for the first half of fiscal 2025 decreased 0.7% year on year to ¥83,253 million, due mainly to a decrease in revenue from the flagship POLA brand. Operating income increased 12.3% year on year to ¥8,217 million mainly due to a reduction in selling, general and administrative expenses, despite a decrease in gross profit from lower net sales, while ordinary income decreased 43.5% year on year to ¥6,282 million due to foreign exchange losses. As a result of the factors noted above and a decrease in income taxes - deferred following the resolution to

liquidate a subsidiary, profit attributable to owners of parent decreased 38.1% year on year to ¥4,643 million.

Operating Results Overview (Millions of yen)

Six Months Ended June 30

2024 2025

Year-on-Year

Amount Change Percent Change (%)

to Owners of Parent

Operating Results by Segment

Net Sales (Segment Sales to External Customers) (Millions of yen)

Six Months Ended June 30

2024 2025

Year-on-Year

Amount Change Percent Change (%)

Segment Profit (Loss) (Operating Income (Loss)) (Millions of yen)

Six Months Ended June 30

2024 2025

Year-on-Year

Amount Change Percent Change (%)

Profit (Note)

Total ¥7,316 ¥8,217 ¥900 12.3

Note: Reconciliations of segment profit refer to elimination of profits arising from inter-company transactions and expenses not allocated to reportable segments. Please see note 2 in "1. Information about Net Sales and Profit (Loss) by Reportable Segment" on page 11 and 12 for the details of reconciliations of segment income during the period.

Beauty Care

The Beauty Care segment consists of the flagship brands POLA and ORBIS, the overseas brand Jurlique, and the brands under development DECENCIA, THREE and FUJIMI.

POLA is working to establish a business base to return to a growth trajectory. In the domestic business, we are working to accelerate sales growth among stores on a growth track in the consignment sales channel and achieve further business growth in other sales channels. New products, namely WRINKLE SHOT SERUM DUO and WHITE SHOT SERUM UV, won numerous best cosmetics awards, and sales increased in stores on a growth track and other sales channels. However, overall performance in the domestic business fell below that of the previous year mainly due to the impact of a decline in the number of customers resulting from the reduction in the number of stores. In the overseas business, we are continuing to establish our brand presence in China, our priority market, by expanding contact points with high-prestige customers and strengthening CRM. However, due to the continued impact of the economic slowdown in some areas of Asia, particularly in China, the overall performance of the overseas business fell below that of the previous year. As a result, POLA brand net sales and operating income decreased year on year.

ORBIS is proceeding with initiatives that focus on customer retention and higher lifetime value as it aims for an even higher profit structure. In the domestic business, ORBIS THE CLEANSING OIL, which was launched in May as the brand's first-ever cleansing oil, won numerous best cosmetics awards and contributed to bringing in new customers. In addition, in the direct selling channel, both customer numbers and unit purchase price rose. In the external channels, we maintained a high sales growth rate, and overall performance in the domestic business exceeded that of the previous year. In the overseas business, the overall performance fell below that of the previous year due to the continued impact of the economic slowdown in some areas of Asia, particularly in China, as well as the impact of the resolution to liquidate our Chinese subsidiary. As a result of the above, ORBIS brand net sales exceeded those of the previous year. However, as a result of implementing investments to expand sales of strategic products in the domestic business, operating income fell below that of the previous year.

Jurlique continues to work toward business growth in the markets of Asia, mainly in Australia and in China. In