Chairperson's Message

TO OUR SHAREHOLDERS

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

In the 27th business term (the fiscal year ended June 30, 2026), following the growth of our E-commerce site and stores (B2C) which had led our growth to date, the highly profitable Marketing Solution segment (B2B) also reached a comparable level in terms of profitability. This was a year in which the hypothesis we put forward five years ago that "companies that have not only an online presence but also a physical store base will lead brand marketing going forward," materialized in the form of tangible results.

As a result, we achieved record highs in both consolidated net sales and consolidated operating income, at 81.8 billion yen and 4.08 billion yen, respectively, and were able to establish a unique and solid position within the industry through our three-pronged model that achieves a fusion of online and offline worlds.

Meanwhile, the information landscape is changing rapidly with the rise of generative AI and other developments, and the cosmetics industry is also entering a major period of transition. While brands' product development and marketing, as well as their touchpoints with consumers, continue to evolve each day, the fundamental importance of encounters between users and brands remains unchanged. Rather, precisely because we are entering an era in which AI makes information searches more efficient, the value of the "design of experiences" that enables users to gain a deeper understanding of brands and develop an affinity for them is greater than ever. We are confident that our strength in closely integrating our high-quality network of physical stores with our online presence will demonstrate its true value all the more in this age of AI.

In the 28th business term, we will further expand the possibilities offered by this design of experiences and take a step toward a new stage of growth with an eye toward the next ten years. Momentum is also growing for public-private collaboration aimed at revitalizing J-Beauty, and we believe that we are now at a major turning point.

We aim to achieve further growth by focusing on the provision of unique experiences that seamlessly fuse online and offline. In addition to maximizing the synergy between AI and reviews, we will create new opportunities between users and brands outside the @cosme platform through social media and events.

Furthermore, we will expand our areas of activity from Japan to overseas, and from cosmetics to BEAUTY in general, and devote ourselves to creating sustainable value.

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.