Supplementary Financial Results Materials for the First Quarter of the Fiscal Year Ending December 2026 | POLA ORBIS HOLDINGS INC. (4927) timely disclosure

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Mixed performance

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Scale

777

¥ millions (year-on-year change in operating income)

Wording

Conditional

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Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending December 202615 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥40,829 million-1.2%

Operating profit¥4,925 million+18.7%

Ordinary income¥6,257 million+153.2%

Net income¥2,463 million +88.0%profit attributable to owners of the parent

Operating profit margin12.1 %

Selling, general and administrative expenses¥28,519 million

Gross Profit MarginThe cost ratio increased from 17.6% in the same period of the previous year to 18.1%. Gross profit margin itself was not disclosed

Results for the three months of the current quarterFor the three months from January to March 2026, standalone results were net sales of ¥40,829 million, operating profit of ¥4,925 million, ordinary profit of ¥6,257 million, and net income attributable to owners of the parent of ¥2,463 million.

Full-year earnings forecast

Consolidated revenue

¥173,000 million

Operating profit

¥17,300 million

Ordinary income

¥17,300 million

Profit attributable to owners of the parent

¥9,000 million

Beauty care business sales

¥166,900 million

Beauty care business operating profit

¥17,750 million

Real-estate business revenue

¥3,060 million

Real estate business operating profit

¥400 million

Other net sales

¥3,040 million

Other operating profit

¥150 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Structural reform at Jurlique and cost control are progressing as planned

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Gross profit decline due to lower sales¥-399 million
Impact of higher cost ratio¥-198 million
Lower personnel expenses¥179 million
Lower sales commissions¥539 million
Lower sales-related expenses¥505 million
Lower administrative expenses and other costs¥149 million
Non-Operating Income and Expenses¥3,008 million
Extraordinary Gains and Losses¥-2,146 million
Income Taxes¥-486 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

¥97
AssumptionsAssumed Australian dollar exchange rate
¥21
AssumptionsAssumed Chinese yuan exchange rate

New initiatives

Strengthen proposals for renewed B.A series products and promote cross-selling
Establish the DECENCIA Sensitive Skin Science Center
Launch THREE's new Balancing Clear series
Promote the development of a manufacturing and research structure for domestically produced essential oils
Strengthen customer engagement and approaches targeting people aged 60 and over

Key KPIsA metric the company considers important as a management benchmark.

POLA domestic business average purchase price0.8 % year on year
Year on year against the same period last year+0.8%
POLA domestic business customer count-7.4 % year on year
Year on year against the same period last year-7.4%
ORBIS direct-to-consumer average purchase price3.1 % year on year
Year on year against the same period last year+3.1%
ORBIS direct-to-consumer customer count-0.7 % year on year
Year on year against the same period last year-0.7%
POLA domestic store count2,475 Location
Year on year against the same period last year6 stores lower than at the end of the previous fiscal year
POLA overseas store count122 Location
Year on year against the same period last year4 stores lower than at the end of the previous fiscal year

Unit price and quantity metricsThese figures show sales broken down by price and volume.

POLA domestic business average purchase price0.8 % year on year
POLA domestic business customer count-7.4 % year on year
ORBIS direct-to-consumer average purchase price3.1 % year on year
ORBIS direct-to-consumer customer count-0.7 % year on year

Segment results

Beauty care business

Net Sales

¥39,277 million-1.3%

Operating profit

¥4,973 million+20.3%

Real Estate Business

Net Sales

¥776 million+5.3%

Operating profit

¥244 million+18.0%

Other

Net Sales

¥775 million+1.4%

Operating profit

¥41 million

yoy_change¥40 million increase year on year

Medium-term management plan targets

Plan nameVISION 2029

Target fiscal year2,029

Target value

Consolidated operating profit¥50.0 billion

Consolidated operating margin15% or higher

Consolidated revenue¥300 billion

Overseas revenue ratio30〜35%

ROE14% or higher

Financial targets

ROE

2025 actual5.8%

2026 target10% or higher

2029 target14% or higher

Market Size / Share

The Japanese cosmetics market was slightly below the level of the same period of the previous year, while consumption in the Chinese cosmetics market was reported to be above the year-earlier level. Market size and market share figures were not disclosed

Number of stores and locations

POLA had 2,475 domestic stores, down 6 from the end of the previous fiscal year, and 122 overseas stores, down 4. The number of openings and closures for other businesses was not disclosed

Capital expenditures

2025 actual

¥8,385 million

2026 forecast

9,000〜10,000

Annual Dividend

2025 actual

Annual¥52 per share

Interim¥21 per share

End of period¥31 per share

2026 forecast

Annual¥52 per share

Interim¥21 per share

End of period¥31 per share

Payout ratio

2025 actual121.5 %

2026 forecast127.8 %

PolicyThe basic policy is to maintain a consolidated payout ratio of 60% or higher

Acquisition of treasury shares

Share repurchases will be considered in light of the investment strategy, the market price and liquidity of the shares, and other factors. The repurchase limit, number of shares and period were not disclosed

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	First quarter of the fiscal year ending December 2026
Net Sales	¥40,829 million (YoY -1.2%)
Operating profit	¥4,925 million (YoY +18.7%)
Ordinary income	¥6,257 million (YoY +153.2%)
Net income	¥2,463 million (profit attributable to owners of the parent) (YoY +88.0%)
Gross Profit Margin	The cost ratio increased from 17.6% in the same period of the previous year to 18.1%. Gross profit margin itself was not disclosed
Operating profit margin	12.1 %
Selling, general and administrative expenses	¥28,519 million
Results for the three months of the current quarter	For the three months from January to March 2026, standalone results were net sales of ¥40,829 million, operating profit of ¥4,925 million, ordinary profit of ¥6,257 million, and net income attributable to owners of the parent of ¥2,463 million.
Full-year earnings forecast	Consolidated revenue ¥173,000 million / Operating profit ¥17,300 million / Ordinary income ¥17,300 million / Profit attributable to owners of the parent ¥9,000 million / Beauty care business sales ¥166,900 million / Beauty care business operating profit ¥17,750 million / Real-estate business revenue ¥3,060 million / Real estate business operating profit ¥400 million / Other net sales ¥3,040 million / Other operating profit ¥150 million
Self-assessment against the plan	Structural reform at Jurlique and cost control are progressing as planned
Segment results	Beauty care business Net Sales ¥39,277 million (YoY -1.3%) / Operating profit ¥4,973 million (YoY +20.3%) / Real Estate Business Net Sales ¥776 million (YoY +5.3%) / Operating profit ¥244 million (YoY +18.0%) / Other Net Sales ¥775 million (YoY +1.4%) / Operating profit ¥41 million
Breakdown of Factors Affecting the Change	Factors Gross profit decline due to lower sales / Amount ¥-399 million, Factors Impact of higher cost ratio / Amount ¥-198 million, Factors Lower personnel expenses / Amount ¥179 million, Factors Lower sales commissions / Amount ¥539 million, Factors Lower sales-related expenses / Amount ¥505 million, Factors Lower administrative expenses and other costs / Amount ¥149 million, Factors Non-Operating Income and Expenses / Amount ¥3,008 million, Factors Extraordinary Gains and Losses / Amount ¥-2,146 million, Factors Income Taxes / Amount ¥-486 million
Key KPIs	Indicator name POLA domestic business average purchase price / Value 0.8 % year on year / Year on year against the same period last year 0.8 % year on year, Indicator name POLA domestic business customer count / Value -7.4 % year on year / Year on year against the same period last year -7.4 % year on year, Indicator name ORBIS direct-to-consumer average purchase price / Value 3.1 % year on year / Year on year against the same period last year 3.1 % year on year, Indicator name ORBIS direct-to-consumer customer count / Value -0.7 % year on year / Year on year against the same period last year -0.7 % year on year, Indicator name POLA domestic store count / Value 2,475 Location / Year on year against the same period last year 6 stores lower than at the end of the previous fiscal year, Indicator name POLA overseas store count / Value 122 Location / Year on year against the same period last year 4 stores lower than at the end of the previous fiscal year
Unit price and quantity metrics	Indicator name POLA domestic business average purchase price / Value 0.8 % year on year, Indicator name POLA domestic business customer count / Value -7.4 % year on year, Indicator name ORBIS direct-to-consumer average purchase price / Value 3.1 % year on year, Indicator name ORBIS direct-to-consumer customer count / Value -0.7 % year on year
Number of stores and locations	POLA had 2,475 domestic stores, down 6 from the end of the previous fiscal year, and 122 overseas stores, down 4. The number of openings and closures for other businesses was not disclosed
Assumptions Underlying the Business Outlook	Assumptions Assumed Australian dollar exchange rate / Value ¥97, Assumptions Assumed Chinese yuan exchange rate / Value ¥21
Medium-term management plan targets	Plan name VISION 2029 / Target fiscal year 2,029 / Target value Consolidated operating profit ¥50.0 billion / Consolidated operating margin 15% or higher / Consolidated revenue ¥300 billion / Overseas revenue ratio 30〜35% / ROE 14% or higher
Financial targets	ROE 2025 actual 5.8% / 2026 target 10% or higher / 2029 target 14% or higher
Annual Dividend	2025 actual Annual ¥52 per share / Interim ¥21 per share / End of period ¥31 per share / 2026 forecast Annual ¥52 per share / Interim ¥21 per share / End of period ¥31 per share
Payout ratio	2025 actual 121.5 % / 2026 forecast 127.8 % / Policy The basic policy is to maintain a consolidated payout ratio of 60% or higher
Acquisition of treasury shares	Share repurchases will be considered in light of the investment strategy, the market price and liquidity of the shares, and other factors. The repurchase limit, number of shares and period were not disclosed
Capital expenditures	2025 actual ¥8,385 million / 2026 forecast 9,000〜10,000
Market Size / Share	The Japanese cosmetics market was slightly below the level of the same period of the previous year, while consumption in the Chinese cosmetics market was reported to be above the year-earlier level. Market size and market share figures were not disclosed
New initiatives	Strengthen proposals for renewed B.A series products and promote cross-selling, Establish the DECENCIA Sensitive Skin Science Center, Launch THREE's new Balancing Clear series, Promote the development of a manufacturing and research structure for domestically produced essential oils, Strengthen customer engagement and approaches targeting people aged 60 and over

Items this document does not state (5)

Progress against full-year forecastNumber of employeesRisk amount incorporated into the outlookOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The main reason for the decline in net sales was lower sales at POLA. Operating profit increased due to higher profit at ORBIS, improved losses at Jurlique, and the reduction and control of SG&A expenses. Net income benefited from the reduction and control of SG&A expenses and the shift from a foreign exchange loss in the same period of the previous year to a foreign exchange gain in the current period, despite an increase in extraordinary losses.

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