Fiscal Year Ending March 2027 Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Results

Consolidated revenue for this interim period remained nearly flat year-on-year at 1,850 million yen. Gross profit was maintained and, through appropriate control of selling, general and administrative expenses, operating income returned to positive territory. Ordinary income improved to 22 million yen from a loss in the same period last year. Interim net income improved substantially to 32 million yen, and improvements in dividends and capital efficiency continue. Digital initiatives such as e-commerce, skin diagnostics, and information platforms were utilized to expand touchpoints with salons. The number of salons carrying our products has also increased.

Financial Position, Cash Flows and Outlook

At the end of the interim period, total assets were 5,122 million yen and the equity ratio remained at a high level of 81.1%. Cash and deposits totaled 2,074 million yen, indicating stable liquidity. Operating cash flow is expected to be positive at approximately 16 million yen, while investing activities saw cash outflows for acquisition of securities, and financing activities incurred slight cash outflows due to dividend payments. There is no change to the full-year earnings forecast, and the company plans to publish supplementary explanatory materials for the financial results.