Chairperson's Message

TO OUR SHAREHOLDERS

I would like to express my appreciation for your continued support and understanding of the Company.

istyle has positioned the 26th business term (the fiscal year ended June 30, 2025) as a challenging year for its Medium-term Business Policy, and has been working for future growth. As a result of steady progress toward our medium-term targets of 100 billion yen in net sales and 8 billion yen in operating income, we achieved record highs in both net sales and operating income of 68.8 billion yen and 3.16 billion yen, respectively. As seen in the growth of EBITDA, this was a year in which we achieved the V-shaped recovery that we have been striving for after the COVID-19 pandemic and recognized that our profit-generating structure is taking a shape.

In the Retail segment, with the opening of the third flagship store, @cosme NAGOYA, we have achieved large-scale store development in Japan's five largest cities, and our E-commerce site also continued to perform well through platform collaboration. In addition, the establishment of a type of collaboration within the platform has further deepened synergies among segments and accelerated the growth of the Marketing Solution segment, which is our earnings driver. The most significant achievement of all is that the growth of each segment has increased users' action (i.e., passion), which has become the driving force for maximizing the value of the platform as a whole.

The 27th business term will be a phase to further increase users' passion and link the actions obtained to earnings. We aim to create the next pillar of earnings by expanding contact points through social media collaboration and events, and establishing relationships with new users.

In addition, the opening of the flagship store, @cosme HONG KONG, in Hong Kong will create new opportunities between users and brands, and will again be the first step toward overseas growth.

We believe that this year will be a turning point for us as we will expand our platform area from Japan to overseas, and from cosmetics to BEAUTY in general.

With the combined strength of all our employees, we will strive with all our might to achieve further growth and development. I greatly appreciate your ongoing support.