Pola Orbis : Summary of Financial Results for Fiscal 2026 First Quarter

For the First Quarter of Fiscal Year Ended December 31, 2026 (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.

May 11, 2026

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

Start of Cash Dividend Payment: －

Supplemental Materials Prepared for Quarterly Financial Results: Yes

Conference Presentation for Quarterly Financial Results: Yes(for analysts)

(Amounts less than one million yen have been truncated)

1. Consolidated Performance for the First Three Months of Fiscal 2026

   (January 01, 2026-March 31, 2026)

   1. Consolidated Operating Results

      (Percentage figures indicate year-on-

      year change)

      	Net Sales		Operating Profit		Ordinary Profit		Profit Attributable to Owners of Parent
      FY2026 Three Months FY2025 Three Months	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      	40,829 41,313	(1.2) 1.0	4,925 4,148	18.7 23.5	6,257 2,470	153.2 (47.1)	2,463 1,310	88.0 (58.1)

      Note: Comprehensive income: ¥1,706 million (-11.2%) for the three months ended March 31, 2026;

      ¥1,921 million (-30.9%) for the three months ended March 31, 2025

      	Basic Earnings Per Share	Diluted Earnings Per Share
      	Yen	Yen
      FY2026 Three Months	11.13	11.12
      FY2025 Three Months	5.92	5.92

   2. Consolidated Financial Position

      	Total Assets	Net Assets	Equity Ratio	Net Assets Per Share
      	Millions of yen	Millions of yen	%	Yen
      FY2026 First Quarter	191,701	157,930	82.3	712.62
      FY2025	197,906	163,094	82.3	735.91

      Reference: Equity capital: FY2026 First Quarter: ¥157,689 million; FY2025: ¥162,833 million

2. Dividends

   	Annual Cash Dividends Per Share
   	Q1-end	Q2-end	Q3-end	Year-end	Total
   FY2025 FY2026	Yen	Yen	Yen	Yen	Yen
   	- -	21.00	-	31.00	52.00
   FY2026 (Forecast)		21.00	-	31.00	52.00

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

3. Consolidated Performance Forecast for Fiscal Year Ending December 31, 2026

   (January 01, 2026-December 31, 2026)

   (Percentage figures indicate year-on-year change)

   	Net Sales		Operating	Profit	Ordinary	Profit	Profit Attributable to Owners of Parent		Basic Earnings Per Share
   	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   Full year	173,000	1.6	17,300	10.2	17,300	1.6	9,000	(5.0)	40.67

   Note: Revisions to the consolidated performance forecast announced most recently:none

   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 the quarterly consolidated financial statements : None

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

      1. Changes in accounting policies associated with revision of accounting standards : None

      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 March 31, 2026 229,136,156 shares

         At December 31, 2025 229,136,156 shares

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

         At March 31, 2026 7,854,087 shares

         At December 31, 2025 7,869,047 shares

      3. Average number of shares issued and outstanding in each period Three months ended March 31, 2026 221,274,589 shares

Three months ended March 31, 2025 221,267,177 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 March 31, 2026, 344,910 shares at December 31, 2025). 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 (344,910 shares in the three months ended March 31, 2026, 344,051 shares in the three months ended March 31, 2025).

Information Regarding Quarterly Review Procedures

The quarterly financial results report is exempt from quarterly 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 Quarter of Fiscal 2026 (3) Explanation of Consolidated Performance Forecast and Other Predictive Information" on page 4.

Table of Contents

1. Qualitative Information on Consolidated Performance for the First Quarter of Fiscal 2026……………… 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 4

2. Quarterly 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 Three Months of Fiscal 2026
   1. Explanation of Consolidated Operating Results

During the three months of fiscal 2026 (January 1-March 31, 2026), the Japanese economy continued to show a gradual recovery, however, it is necessary to keep a close eye on the impact of the situation in the Middle East and other factors. Despite signs of recovery in personal consumption backed by a recovery in the real wage income of employees, consumer sentiment has remained weak recently.

In the domestic cosmetics market, while recent performance has been generally stable, the market size excluding inbound demand has remained slightly below year on year. Regarding inbound demand, while the number of visitors to Japan remains high, changes in consumer behavior have led to a recent decline in duty-free sales, particularly at department stores. In the Chinese cosmetics market, consumer spending has continued to grow year on year, and demand has remained generally steady.

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 three months of fiscal 2026 were as follows.

Consolidated net sales for the three months of fiscal 2026 fell 1.2% year on year to ¥40,829 million, due mainly to a decrease in sales from the flagship POLA brand. Operating profit increased 18.7% year on year to ¥4,925 million due to appropriate expense control, while ordinary profit surged 153.2% year on year to ¥6,257 million due to foreign exchange gains and losses. As a result of the factors noted above, affected by the recording of expenses involved in the business restructuring expenses and other factors, profit attributable to owners of parent increased 88.0% year on year to ¥2,463 million.

Operating Results Overview (Millions of yen)

Three Months Ended March 31

2025 2026

Year-on-Year

Amount Change Percent Change (%)

Owners of Parent

Operating Results by Segment

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

Three Months Ended March 31

2025 2026

Year-on-Year

Amount Change Percent Change (%)

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

Three Months Ended March 31

2025 2026

Year-on-Year

Amount Change Percent Change (%)

Profit (Note)

Total ¥4,148 ¥4,925 ¥777 18.7

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 improve profitability by accelerating further growth of stores on a growth track through enhancing customer experience value in the salon channel, and by completing the full renewal of the premium series, B.A. While sales of stores on a growth track in the salon channel, the e-commerce channel, and the hotel amenities channel performed strongly, overall performance in the domestic business fell below that of the previous year due to factors such as improved precision of restraints placed on shipping for secondary distribution aimed at strengthening branding, and a decrease in the number of inbound tourists. 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. Net sales for the overall overseas business decreased, partly due to differences in shipment timing in the duty-free channel. Meanwhile, in the China business, strong performance of new products in B.A series contributed to growth in net sales, primarily in the online channel. As a result, POLA brand net sales and operating profit decreased year on year.

ORBIS is working to expand its customer base through diversification of touchpoints and strengthen its profit structure centered on high-value-added skincare products as it aims for an even higher profit structure. In the domestic business, we are pursuing approaches to new customer segments and markets with growth potential, while also building a foundation centered on customers with high retention rates and high lifetime value through enhancing brand value. In the direct selling channel, unit purchase price rose as a result of efforts to promote active customers and propose highly functional, higher-priced products. In the external channels, we expanded customer contact points and maintained a high sales growth rate, and overall performance in the domestic business exceeded that of the previous year. In the overseas business, while overall performance fell below that of the previous year due to the impact of the liquidation of our Chinese subsidiary, we are seeing signs of a recovery and expansion in demand in ASEAN and East Asia. As a result of the above, ORBIS brand net sales and operating profit exceeded those of the previous year.