Financial Results Presentation Materials for the Fiscal Year Ending April 2027 1Q Financial Results Briefing Materials

Overview of the results

In the first half, ongoing front-loaded investments, and inventories are planned for the second-half peak season, with revenue increasing YoY. Mobile Life faced losses due to upfront advertising and other investments, but new product launches from Q2 onward and expansion of high-price MagSafe-related mix are expected to raise selling prices. Beauty significantly increased revenue and turned profitable through expanded distribution of base makeup and new product introductions. Global operations are expected to improve through the phasing-out of tariff refunds. After the spin-off of NE, efforts to maintain SE-grade consistency while strengthening overall e-commerce operations.

Outlook and shareholder returns

As the first year of the mid-term plan, focus on improving gross margin and stabilizing inventory turns. Continue upfront investments toward the second-half peak season with plans to recover in the latter half. Maintain a payout ratio of at least 20%. For the fiscal year ending April 2026, dividend is 22.5 yen per share; for the fiscal year ending April 2027, envisaged to be 3 yen after considering the business scale post NE spin-off.