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Results of Operations Six Months Ended June 30 , 2026 KOSÉ KOSÉ Holdings Corporation August 6 , 2026 KOSÉ 1
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2 1. 2026 First Half (1H) Review & Second Half (2H) Initiatives Shinichi Mochizuki, Executive Director & GroupCFO 2. Initiatives to Achieve Milestone2030 Koichi Shibusawa, President & Group COO 3. Supplementary Information
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3 1H 2026 Financial Summary ➢Net sales: ¥164.9 billion Up ¥4.3 billion (+2.7%) YoY (up 0.2% excluding forex) Higher Tarte and KOSÉ sales more than offset lower ALBION and KOSÉ Cosmeport sales ➢Operating profit: ¥6.6 billion Down ¥4.7 billion (-41.5%) YoY Decreased due to lower earnings at ALBION and KOSÉ Cosmeport, although earnings were higher at KOSÉ ➢Profit attributable to owners of parent: ¥5.6 billion Down ¥1.4 billion (-19.9%) YoY Despite a higher forex gain from the yen’s depreciation, profit decreased due to the absence of the gain on sale of non-current assets recorded in the same period of the previous year
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4 Consolidated Income Statement Highlights 1H 2025 1H 2026 Change (billion yen) Change (ratio) Change (excluding FX impact)Amount (billion yen) Ratio to net sales Amount (billion yen) Ratio to net sales Net sales 160.5 100.0% 164.9 100.0% +4.3 +2.7% +0.2％ Japan 104.7 65.3% 101.1 61.4% -3.5 -3.4% Asia 21.0 13.1% 26.1 15.9% +5.0 +24.0% North America, others 34.6 21.6% 37.5 22.8% +2.9 +8.4% Gross profit 113.1 70.5% 116.4 70.6% +3.3 +2.9% Operating profit 11.3 7.1% 6.6 4.0% -4.7 -41.5% Ordinary profit 9.6 6.0% 8.8 5.3% -0.7 -8.2% Profit attributable to owners of parent 7.0 4.4% 5.6 3.4% -1.4 -19.9% Net income per share 124.36yen 99.84yen -24.52yen Capital expenditures 13.4 19.8 Depreciation 5.2 4.9
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5 61.4% 15.9% 22.8% 日本 アジア 北米その他 1H 2026 Sales composition by region ¥101.1 billion ¥26.1 billion ¥37.5 billion 1H 2026 Regional Sales ➢ Although sales in Japan were lower, overall sales increased due to strong growth in Asia and North America, others. 1H 2025 1H 2026 Japan -3.5 -3.4% YoY * Percentages in parentheses exclude changes in foreign exchange rates. Asia +5.0 +24.0% YoY (+15.6%) North America, others +2.9 +8.4% YoY (+1.7%) Total = +4.3/ +2.7% (+0.2%) 160.5 164.9 (billion yen) Japan Asia North America, others
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6 KOSÉ Holdings KOSÉ ◼ DECORTÉ and SEKKISEI sales decreased year on year, reflecting a high base effect from the launch of a major new product in the previous period of 2025. ◼ ONE BY KOSÉ sales were brisk for new and existing products. ALBION ◼ Elégance sales decreased mainly due to a drop in domestic duty- free sales, which was affected by flight reductions caused by China’s travel restrictions between Japan and China. ◼ Demand was firm in Japan, mainly for ALBION brand products. KOSÉ Cosmeport ◼ CLEAR TURN sales declined due to intense competition. ◼ SUNCUTⓇ sales were strong. Softymo sales increased starting in the 2Q due to the success of major marketing campaign featuring popular characters. Net Sales by Region: Japan ➢ Sales in Japan decreased YoY because of lower ALBION and KOSÉ Cosmeport sales. Total = -3.5 / -3.4% 104.7 101.1 (billion yen) ONE BY KOSÉ +1.1 /+33.6% *2 The Accounting Standard for Revenue Recognition is not applied for each brand. *1 KOSÉ sales are calculated by taking the total sales in Japan and excluding consolidation adjustments, as well as sales from the ALBION, KOSÉ Cosmeport, Tarte, and PAÑPURI businesses. 1H 2025 1H 2026 KOSÉ*1 -0.1 / -0.3% ALBION -1.2 / -4.0% KOSÉ Cosmeport -0.5 / -2.5% Others -0.3 / -40.7% Revenue recognition -1.3 / -%
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7 KOSÉ Holdings KOSÉ China ◼ Mainland China sales increased, driven by strong sales of promotional sets featuring AQ PORE BLACKHEAD DISSOLVER (Deep Pore Cleanser). ◼ Sales at e-commerce events in March and June were higher than one year earlier. ◼ In offline sales, the share of high-end DECORTÉ products increased and measures to add new customers were successful. TR (excluding PAÑPURI) ◼ Duty-free sales in China grew, driven by a demand recovery in Hainan Island, along with the completed integration and resumed operations of duty-free operators. PAÑPURI ◼ Sales were firm in Thailand. ◼ New store openings also drove sales. Net Sales by Region: Asia ➢Overall sales in Asia grew in the double digits, driven by higher China duty free sales Total = +5.0 / +24.0% (+15.6%) 21.0 26.1 (billion yen) 1H 2025 1H 2026 * Percentages in parentheses exclude changes in foreign exchange rates. KOSÉ China +0.9 / +16.9% (+3.8%) TR (excluding PAÑPURI) +2.6 / +47.2% PAÑPURI +0.8 / +36.3% (+22.5%) Others +0.6 / +8.3%
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8 KOSÉ Holdings Tarte (North America) ◼ Sales growth was driven by expanded sales of shape tape™ concealer, one of the major products, at U.S. Sephora stores. ◼ In online channels, TikTok sales were strong for current popular products as well as for new products. Tarte (Europe & other) ◼ Double-digit sales growth in Europe backed by more promotional activities conducted jointly with retailers. ◼ “Custom kit sale” on tarte.com international significantly contributed to sales growth. ◼ Middle East sales decreased because of the Iran conflict. Others ◼ SEKKISEI sales at KOSÉ America declined due to the absence of bulk orders from a major retailer recorded in 1H 2025. Shipments are scheduled to begin in the second half of 2026. Net Sales by Region: North America, Europe, Others ➢Strong performance at Tarte’s online channels drove overall sales. Both sell-through rates and shipments reached record highs. Total = +2.9 / +8.4% (+1.7%) 34.6 37.5 1H 2025 1H 2026 * Percentages in parentheses exclude changes in foreign exchange rates. (billion yen) Tarte (North America) +3.1 / +10.9% (+4.2%) Tarte (Europe & other) +1.0 / +29.9% (+22.1%) Others -1.2 / -57.5%
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9 1H Operating segment 2025 2026 Change (billion yen) Change (ratio)Amount (billion yen) Ratio to net sales Amount (billion yen) Ratio to net sales Cosmetics 127.9 79.7% 133.3 80.8% +5.3 +4.2% Cosmetaries 31.2 19.5% 30.1 18.3% -1.0 -3.4% Others 1.3 0.8% 1.4 0.9% +0.0 +5.5% Total 160.5 100.0% 164.9 100.0% +4.3 +2.7% 1H Operating segment 2025 2026 Change (billion yen) Change (ratio)Amount (billion yen) Operating margin Amount (billion yen) Operating margin Cosmetics 9.7 7.7% 7.8 5.9% -1.9 -19.5% Cosmetaries 3.7 12.1% 1.4 4.7% -2.3 -62.6% Others 0.7 45.1% 0.6 39.0% -0.1 -15.0% Adjustment -2.9 - -3.2 - -0.3 - Total 11.3 7.1% 6.6 4.0% -4.7 -41.5% Net sales Operating profit Sales and Operating Profit by Segment ➢ In the cosmetics segment, operating profit decreased. Although KOSÉ earnings increased due to strong duty-free sales in China, expenditures for advertising and special events to raise awareness of ALBION as the company celebrates its 70th anniversary were concentrated in the first half. ➢ In the cosmetaries segment, operating profit decreased due to a lower gross profit at KOSÉ Cosmeport caused by lower sales and a higher cost of sales ratio and to an increase in marketing expenses for a major marketing campaign.
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10 Analysis of Change in Operating Profit ➢ Gross profit: Increased because of higher sales, primarily at Tarte and KOSÉ’s China duty-free operations ➢ Selling expenses: Increased because of higher expenditures involving ALBION’s 70th anniversary and many marketing activities at Tarte and KOSÉ Cosmeport Total = -¥4.7 billion / -41.5% *2. ALBION 1Q sales were down YoY because of a rush to make purchases in 2025 1Q prior to price revisions. This one-time factor was offset in the 2025 2Q and had no effect on the 1H sales comparison. 11.3 6.6 Includes +¥1.6 billion for IEEPA Tariff Refund One-time factors: -¥2.5 billion Display costs for Tarte to expand shelf space for major product launches at U.S. Sephora stores, and large- scale promotional and special event expenditures to raise ALBION's brand awareness for its 70th anniversary (billion yen) 1H 2025 1H 2026 Gross profit: +¥3.3 billion SG&A expenses: -¥8.0 billion Selling expenses -¥6.4 billion Administrative expenses -¥1.5 billion Increase in gross profit due to higher sales +3.0 Impact of the cost of sales ratio +0.2 (29.5% →29.4%) MC -5.6 (22.5% →25.4%) Personnel expenses -0.9 Other administrative expenses -0.6 Logistics expenses -0.8 *1. Percentages in parentheses are items as a pct. of total sales.
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11 ➢ There is currently no revision to the 2026 outlook announced on February 12, 2026. ➢ Reviewed the breakdown by region considering 1H results. Strong Sales in Asia and North America/others is offsetting the shortfall in Japan. ➢ Operating profit: Conflicts in the Middle East are expected to raise expenses by ¥1.3 billion. Planning on offsetting these expenses in 2026 by controlling marketing and administrative expenses. （億円） 2026 Consolidated Outlook 2025 results 2026 plan YoY change (amount) YoY change (ratio) Initial plan YoY change (ratio) Aug. 6 revisionAmount Ratio to net sales Amount Ratio to net sales Net sales 330.1 100.0% 350.0 100.0% +19.8 +6.0% No change Japan 215.3 65.2% - -% - + mid single-digit % + low single digit % Asia 44.1 13.4% - -% - + mid single-digit % low +20% range North America, others 70.7 21.4% - -% - + high single-digit % low +10% range Operating profit 18.4 5.6% 20.0 5.7% +1.5 +8.3% No changeOrdinary profit 21.4 6.5% 21.0 6.0% -0.4 -2.2% Profit attributable to owners of parent 15.1 4.6% 12.1 3.5% -3.0 -19.9% Net income per share 264.84 yen 213.21 yen ROE 5.4% 4.0% ROIC 3.7% 3.5% Capital expenditures 21.2 30.0 Depreciation 10.8 13.0 Foreign exchange rate Currency 2025 results 2026 initial estimate August 6 revision US$ 149.7 156.0 159.4 CN¥ 20.8 22.3 23.3 KR₩ 0.105 0.109 0.105 (billion yen)
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12 Analysis of 2026 Operating Profit Plan August 6 Revision (Vs. 2025 Results) ➢Large increase in gross profit due to higher sales. ➢More marketing activities at ALBION, KOSÉ Cosmeport and Tarte are the main reason for the expected increase in selling expenses. 2025 results 2026 revised plan (August 6)Total = +¥1.5 billion / +8.3% *Percentages in parentheses are items as a pct. of total sales. Gross profit: +¥16.8 billion 18.4 20.0 SG&A expenses: -¥15.3 billion (billion yen) Personnel expenses -2.2 Other administrative expenses -1.5 Selling expenses -11.5 Increase in gross profit due to higher sales +13.6 Impact of the cost of sales +3.2 (31.0% →30.0%)
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13 Analysis of 2026 Regional Sales Plan August 6 Revision (Vs. Initial Plan) 3,500 Japan -8.7 Asia +6.8 North America, others +1.8 2026 initial plan 2026 revised plan (August 6) *See page 31 for details of sales growth rate by business segment. (billion yen) 350.0 350.0 ➢ KOSÉ -¥3.4 billion ➢ ALBION: -¥0.3 billion ➢ KOSÉ Cosmeport: -¥3.6 billion ➢ KOSÉ duty free: +¥3.3 billion ➢ ALBION: +¥1.5 billion ➢ Tarte: +¥3.3 billion ➢ KOSÉ America: -¥1.1 billion ➢ Japan: The forecast was revised downward, mainly for the KOSÉ Cosmeport and the KOSÉ businesses, reflecting intensifying market competition. ➢ Asia: The forecast was revised upward, supported by sales growth in China’s duty-free sector of the KOSÉ business, the ALBION business, and other businesses. ➢ North America, others: Strong performance in the Tarte business offset the decline in sales at KOSÉ America following a large order in the same period of 2025.
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14 Analysis of 2026 Operating Profit Plan August 6 Revision (Vs. Initial Plan) ➢Despite the anticipated impact of rising raw material prices due to the situation in the Middle East, the cost-of-sales ratio is expected to improve as a result of IEEPA tariff refunds. ➢The increase in SG&A expenses is mainly due to higher logistics costs, while the initial forecast for marketing expenses remains unchanged. 2026 initial plan Gross profit: +¥1.2 billion 20.0 20.0 SG&A expenses: -¥1.2 billion (billion yen) 2026 revised plan (August 6) Personnel expenses -0.1 Other administrative expenses +0.8 Selling expenses -1.8 Increase in gross profit due to higher sales 0.0 Impact of the cost of sales +1.2 (30.4% →30.0%) *Percentages in parentheses are items as a pct. of total sales.
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15 Dividends / Payout Ratio ➢ Dividend for 2026: The interim dividend is ¥70 and the dividend for full year is expected to be ¥150 per share including a commemorative dividend of ¥10. No change in the initial plan for 2026. 60 60 70 70 70 70 70 60 60 70 70 70 70 80 57.1 51.3 42.5 68.5 106.4 52.9 70.8 0 50 100 150 200 FY3/2021 FY12/2021 FY12/2022 FY12/2023 FY12/2024 FY12/2025 FY12/2026 (plan) Interim dividend Year-end dividend Payout ratio (%) (yen) Commemorative dividend
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16 Initiatives for 2H 2026: KOSÉ Business –DECORTÉ ◆ Expanding sales through measures to increase loyal customers in Japan and global promotions in the travel retail business Specific Measures Japan ✓ Penetrate the high prestige market by strengthening brand value. ✓ Nurture loyal customers primarily through initiatives centered on the LIPOSOME series. ✓ Achieve sales recovery and higher profitability through the growth of the EC business. Overseas / Travel retail ✓ Accelerate growth in Greater China and enhance brand value using hero products as a hook. Initiatives for 2H 2026 Evaluation of 1H 2026 Results Japan ✓ Lower sales, as strong performance in KOSÉ EC was offset by the high baseline set by new product launches in the same period last year. Overseas / Travel retail ✓ Strong sales of AQ PORE BLACKHEAD DISSOLVER(Deep Pore Cleanser) in mainland China ✓ The LIPOSOME series campaign proved successful in the travel retail business. Japan ✓ Enhance information dissemination using KOSÉ ID and promote subscriptions for the LIPOSOME series. ✓ Started sales on Amazon in July; stepping up investments in KOSÉ EC channels. ✓ Renew AQ MELIORITY , the pinnacleof the brand, in September. Overseas / Travel retail ✓ Nurture AQ PORE BLACKHEAD DISSOLVER in Greater China to encourage cross-selling to the AQ and LIPOSOME series. ✓ Roll out LIPOSOME series campaigns at major airports in Japan, Asia, and North America AQ MELIORITY THE CREAM DECOLATION (To be launched in September 16) AQ PORE BLACKHEAD DISSOLVER wins the Mintel Most Innovative 2026 (Beauty & Personal Care category in Asia region) Award
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17 Initiatives for 2H 2026: KOSÉ Business –Prestige / Mass Brands ◆ Aim to expand market share and accelerate sales growth by enhancing the appeal of high-function, high-value-added products Specific Measures ✓ ONE BY KOSÉ: Further expand presence in the beauty serum market by strengthening the core product, SERUM VEIL ✓ SEKKISEI: Focus on sales of the BRIGHTENING series beauty lotions Initiatives for 2H 2026 Evaluation of 1H 2026 Results ✓ ONE BY KOSÉ drove overall performance ✓ SEKKISEI: Sales decreased due to lower shipments in the U.S. and a reactionary decline following a new product in 1H 2025. Evaluation of 1H 2026 Results ✓ MAKE KEEP: Sales decreased due to a reactionary decline following the launch of sunscreen products in 1H 2025. ✓ Visée: Sales continued to decrease, while ESPRIQUE and FASIO achieved sales growth. ✓ MAKE KEEP is building momentum for its fall product rollout ✓ For other makeup brands, maximized investment efficiency through product strategies leveraging each brand's strengths Initiatives for 2H 2026 Specific Measures ✓ ONE BY KOSÉ: Add aging-care benefits to SERUM VEIL starting in August. Launch lotion and emulsion under THE WRINKLESS ✓ SEKKISEI: Concentrate major promotions in July. Strictly focus on maximizing conversion from trial sizes to full-size lotions Prestige Brands Mass Brands ✓ MAKE KEEP: Roll out a large-scale promotion for mists. Launch a new mascara category in September. ✓ Other makeup brands: Optimize the number of SKUs while renewing existing products and promoting cross-selling to related items THE WRINKLESS Lotion/Emulsion MAKE KEEP CURL KEEP MASCARA
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18 Initiatives for 2H 2026: ALBION Business ◆ Aim for an earnings recovery in 2H through the introduction of new star products that symbolize the brand. Specific Measures ✓ Work to recover domestic duty-free shipments ✓ Recover sales and profit by rolling out new "emulsion" products that symbolize ALBION and expanding sales of skincare products Initiatives for 2H 2026 Evaluation of 1H 2026 Results ✓ Lower sales: While EC sales and domestic demand remained solid, the recovery of airport duty-free sales was slower than anticipated ✓ Lower profit: Advertising and event expenses to boost awareness for the 70th anniversary were concentrated in 1H ✓ Launch ALBION STUDIO Milk Foundation in August to drive new customer acquisition ✓ Renew the EXCIA series emulsions in September ✓ Promote cross-selling with existing skincare products ALBION STUDIO Milk Foundation ■New products launched in 1H 2026 ALBION LARUNÉ Bright Line Elégance MODELING COLOR BASE UV ALBION S-UV Cut Wrinkle Illuminating Day Cream ALBION EXCIA Radiance Renew Rich Milk E Extra Rich Milk E ■ New Products for 2H 2026
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19 Initiatives for 2H 2026: KOSÉ Cosmeport Business ◆ Ensure profitability by focusing on key products and skincare products Specific Measures ✓ Generate sales and profit by nurturing existing core products and introducing new skincare products. ✓ Improve profitability through strict cost controls Initiatives for 2H 2026 Evaluation of 1H 2026 Results ✓ Lower sales and profit: Despite strong performance from Softymo and SUNCUTⓇ, overall revenue fell due to lower sales of CLEAR TURN and increased marketing expenses ✓ Character-based initiatives and the SUNCUTⓇ campaign featuring "HANA" successfully stimulated demand ✓ Strengthen the skincare lineup by launching new products from CLEAR TURN and GRACE ONE, as well as introducing the new skincare brand URUTANQ. ✓ Stimulate store-level demand by releasing large-capacity (bonus-sized) products for Softymo and CLEAR TURN ✓ Improve the gross profit margin by reducing waste, in addition to curbing SG&A (administrative) expenses CLEAR TURN Gomenne Suhada Kininaru Suhada Facial Cleanser (To be launched on August 21) CLEAR TURN CLINI SHOT Firming Face Mask (30 sheet bonus- sized) (To be launched on August 21) ■Products contributed to 1H results SUNCUTⓇ series ■ New Products for 2H 2026 GRACE ONE Wrinkle Care Wrinkle Lift V The Serum (To be launched on August 21) URUTANQ Moisturizing Lotion Soft Film Cream (To be launched on September 18)
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20 Initiatives for 2H 2026: Tarte Business ◆ Drive continued global growth while maintaining disciplined marketing investment in a competitive prestige makeup market. Specific Measures ✓ Aim to achieve our plan through disciplined cost management and focused investment in high-return marketing initiatives. Initiatives for 2H 2026 Evaluation of 1H 2026 Results ✓ Strong sales growth and retail sell-through ✓ Growth was supported by strong digital commerce performance and the launch of shape tape™ concealer at Sephora US and Sephora at Kohl‘s. ✓ Profit declined slightly on a local currency basis due to one-time investments associated with the Sephora expansion. The U.S. Sephora launch increased the global visibility of shape tape™, supporting continued momentum across Sephora international markets. ✓ In North America, improve profitability through disciplined digital marketing and continued growth in higher-productivity e- commerce channels. ✓ Globally, expand tarte’s presence through Sephora, with a focus on Europe and other priority international markets. ItalyFrance ■Best Sellers (1H 2026) Dubai tubing mascara tubing XL mascara shape tape concealer CC undereye corrector
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21 Initiatives for 2H 2026: PAÑPURI Business ◆ Accelerate store openings outside Thailand in 2H, aiming for global expansion and sales growth. Aoyama (Japan) (To be launched in August 28) Specific Measures ✓ Speed up growth by expanding operations globally. Initiatives for 2H 2026 Evaluation of 1H 2026 Results ✓ Performed strongly, driven by the recovery of inbound demand in Thailand and sales contributions from China and Macao. ✓ Plan to open more than 10 new stores in the Asian region, primarily in China, during 2H. ✓ Open PAÑPURI Aoyama in August, the first street-front store in Japan. Aim to raise brand awareness and acquire new customers by opening a store in GINZA SIX (October) and other locations Harbour City (Hong Kong) (Launched in May 17) Venetian Macao (Macao) (Launched in February 15)
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22 1. 2026 First Half (1H) Review & Second Half (2H) Initiatives Shinichi Mochizuki, Executive Director & GroupCFO 2. Initiatives to Achieve Milestone2030 Koichi Shibusawa, President & Group COO 3. Supplementary Information
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23 Initiatives to Achieve Milestone2030 2024 2025 2026 2027 2028 2029 2030 Phase1 Completion of structural reforms and rebuilding an infrastructure Phase2 Shift to a continuous and sound growth spiral onward Targets for 2030 Sales CAGR 5% or more Operating margin 12% Japan’s No.1 cosmetics manufacturer in terms of sales ◆ Aim to become Japan’s No.1 cosmetics manufacturer in terms of sales, while continuing the KOSÉ profitability improvement measures implemented since FY2025. Transition to a holding company structure Phase3 Evolution to become a global company
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24 KOSÉ Holdings Corporation Holding company Operating companies KOSÉBusiness ALBION Business KOSÉ Cosmeport Business Tarte Business PAÑPURIBusiness KOSÉ Corporation KOSÉ Sales Co., Ltd. To be merged in January 2028 ➢ Strengthening market adaptability through an integrated manufacturing and sales structure [Integrated manufacturing/sales] Integrated operations from product planning and development to sales [Market adaptability] Build an organizational structure to rapidly reflect consumer needs in product development, and execute agile and consistent strategies ➢ Enhancing transparency and optimizing the profit structure [Independent accounting system] Transform into a self-reliant organization that pursues profit by visualizing earnings per business [Cost competitiveness] Achieve cost reduction by reviewing manufacturing processes <Optimization of the brand portfolio> Improve profitability through cost reductions, enhanced ROI on marketing expenses, and reduction of SG&A expenses, driven by earnings visualization. Contributes to achieving the Milestone 2030 financial target (Operating margin of 12%) Drastic Initiatives to Strengthen Profitability – KOSÉ Business Structural Reforms (1) ◆ KOSÉ Corporation to absorb KOSÉ SALES CO., LTD. in January 2028
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25 Drastic Initiatives to Strengthen Profitability – KOSÉ Business Structural Reforms (1) ◆Prior to the merger, functional integration from KOSÉ SALES CO., LTD. to KOSÉ Corporation will be implemented in January 2027. KOSÉ Corporation KOSÉ SALES CO., LTD. DECORTÉDiv. Strategic Brands Div. Consumer Brands Div. Administration Department Stores Specialty Stores Drugstores GMS/Supermarkets Administration Current From January 2027 KOSÉ Corporation DECORTÉ Business Strategic Brands Business Consumer Brands Business Integration of administrative operations of KOSÉ and KOSÉ Sales Transfer sales/promotion functions and nationwide sales bases of the current sales company to each brand business.
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26 Drastic Initiatives to Strengthen Profitability – KOSÉ Business Structural Reforms (2) Measures Actions Benefits (1) Business process reform utilizing AI and DX Implement company-wide AI education and utilization to drive business process reforms across a wide range of areas, including sales, marketing, and back office operations Streamline routine tasks to increase value-added creation per employee (2) Optimization of organizational and personnel structures "Special Life Challenge"(voluntary early retirement program) Support employees' career choices and promote the optimization of organizational and personnel structures through the Special Life Challenge* (voluntary early retirement program) *Expanded version of the annual Life Challenge program. Target for FY2026: approx. 80 employees Improve human productivity through the optimization of organizational and personnel structures, leading to the enhancement of medium-to-long-term corporate value (3) Creation of synergies through the group structure Taking the transition to a holding company structure as an opportunity, promote the review of operations and functions, mainly in administrative departments, from the perspective of group optimization Aim to improve productivity across the entire group and reallocate generated management resources to growth areas ◆Promoting initiatives to improve workforce productivity
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27 Creating Beauty in a Sustainable World
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28 1. 2026 First Half (1H) Review & Second Half (2H) Initiatives Shinichi Mochizuki, Executive Director & GroupCFO 2. Initiatives to Achieve Milestone2030 Koichi Shibusawa, President & Group COO 3. Supplementary Information
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29 1H 2025 2026 Change (billion yen) Change (ratio)Amount (billion yen) Ratio to net sales Amount (billion yen) Ratio to net sales Cost of sales 47.3 29.5% 48.4 29.4% +1.0 +2.3% SG&A expenses 101.8 63.4% 109.8 66.6% +8.0 +7.9% Selling expenses Sales promotion 22.8 14.2% 25.4 15.4% +2.5 +11.2% Advertising 13.2 8.3% 16.3 9.9% +3.0 +23.3% Marketing cost 36.1 22.5% 41.8 25.4% +5.6 +15.6% Freightage and packing 10.1 6.3% 10.9 6.6% +0.8 +8.0% Subtotal 46.2 28.8% 52.7 32.0% +6.4 +14.0% General and administrative expenses Personnel 31.4 19.6% 32.4 19.6% +0.9 +3.0% R&D 3.3 2.1% 3.2 2.0% -0.0 -1.9% Depreciation 3.2 2.0% 3.2 1.9% +0.0 +0.1% Others 17.5 10.9% 18.2 11.0% +0.6 +3.8% Subtotal 55.5 34.6% 57.1 34.6% +1.5 +2.8% Cost of Sales and SG&A Expenses
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30 1Q-4Q (billion yen / %) 2025 2026 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Japan Sales 51.7 53.0 52.2 58.2 215.3 48.1 53.0 YoY change +6.0% +1.3% -3.8% +4.3% +1.9% -7.0% +0.1% Ratio to net sales 65.5% 65.0% 65.4% 65.0% 65.2% 61.5% 61.2% Asia Sales 9.7 11.3 8.7 14.2 44.1 11.3 14.7 YoY change +1.2% -17.2% +31.3% +34.1% +8.6% +16.4% +30.6% Ratio to net sales 12.4% 13.9% 11.0% 15.9% 13.4% 14.5% 17.0% North America, others Sales 17.4 17.2 18.9 17.1 70.7 18.7 18.8 YoY change -8.6% +10.6% +1.9% -2.0% +0.0% +7.3% +9.5% Ratio to net sales 22.1% 21.1% 23.6% 19.2% 21.4% 23.9% 21.7% Total Sales 78.9 81.5 79.9 89.6 330.1 78.2 86.6 YoY change +1.8% +0.0% +0.5% +6.7% +2.3% -0.9% +6.3% Ratio to net sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% —QuarterlyNet Sales by Region
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31 YoY changes in sales, % FY2025 FY2026 FY2026 Outlook Initial plan → Aug. 6 revision1Q 2Q 3Q 4Q Total 1Q 2Q 1H Consolidated sales*note 1 +1.8% +0.0% +0.5% +6.7% +2.3% -0.9% +6.3% +2.7% +6.0% → No change 【Segment】 Cosmetics*note1 +2.2% -0.3% +2.2% +6.6% +2.7% +0.6% +7.7% +4.2% +6.4% → + high single-digit % High prestige +5.0% -0.9% +4.7% +3.5% +3.0% +2.6% +10.5% +6.6% + mid single-digit % → + high single-digit % DECORTÉ -2.8% -0.4% +8.1% +12.6% +4.4% +8.9% +11.5% +10.4% + mid single-digit % → Around +10% Prestige -5.6% +11.2% -11.3% +22.9% +3.9% +2.8% -9.8% -3.6% + mid single-digit % → + low single-digit % SEKKISEI -10.7% +11.4% -15.1% +27.3% +3.9% -6.4% -18.8% -13.5% Mid +10% range →- low single-digit % Cosmetaries*note 1 +0.0% +0.0% -5.8% +5.4% -0.3% -7.8% +0.5% -3.4% +3.9% → Flat 【 Major Group Companies】 JPY ALBION +24.4% -7.0% -3.4% -0.8% +2.2% -6.8% +4.9% -1.2% + mid single-digit % → No change KOSÉ Cosmeport -1.0% -4.9% -2.1% +20.6% +2.5% -11.6% +6.3% -2.2% + low single-digit % → - low single-digit % KOSÉ China*note 1, 2 -3.4% -9.6% +20.9% +15.0% +3.5% +6.2% +23.6% +16.9% -- KOSÉ China TR +4.6% -47.4% +23.1% +20.3% -19.5% +55.1% +32.8% +42.4% -- Tarte*note 1 -4.8% +3.1% +4.6% -8.5% -1.5% +8.9% +15.0% +11.9% + high single-digit % → Mid +10% range PAÑPURI*note 1 -% -% -% -% -% +20.8% +60.7% +37.6% Low +30% range → Mid +30% range Local currency KOSÉ China*note 1, 2 -4.8% -4.6% +21.6% +13.1% +4.5% -1.9% +7.4% +3.8% -- KOSÉ China TR -5.9% -46.7% +37.4% +15.4% -20.7% +56.7% +24.2% +38.2% -- Tarte*note 1 -7.3% +11.2% +6.0% -9.7% -0.3% +6.0% +4.2% +5.1% + mid single-digit % → + high single-digit % PAÑPURI*note 1 -% -% -% -% -% +9.3% +42.7% +22.9% Mid +20% range → No change Note 1: Figures are after applying the Accounting Standard for Revenue Recognition. All other figures are before applying the standard. Note 2: KOSÉ China sales includes online and offline operations and does not include travel retail. Sales Growth Rate by Business Segment
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32 (billion yen) KOSÉ Businesses DECORTÉ SEKKISEI 2025 2026 YoY change (ratio) 2025 2026 YoY change (ratio) 2025 2026 YoY change (ratio) Japan Asia/ others Japan Asia/ others Japan Asia/ others Japan Asia/ others Japan Asia/ others Japan Asia/ others Japan Asia/ others Japan Asia/ others Japan Asia/ others 1Q 28.4 7.7 29.0 8.7 +2.1% +13.5% 10.1 5.9 10.2 7.2 +1.1% +22.3% 2.6 1.1 2.2 1.0 -15.0% -3.9% 2Q 31.5 10.3 30.7 12.2 -2.4% +18.2% 12.2 7.8 11.9 10.4 -2.4% +33.2% 2.8 1.9 2.5 1.2 -9.5% -35.3% 3Q 30.2 6.6 10.0 4.9 2.2 1.0 4Q 36.8 12.1 13.9 9.0 2.8 2.1 Subtotal 127.1 36.9 46.3 27.7 10.6 6.3 Total sales 164.0 74.9 16.9 (billion yen) ALBION Businesses KOSÉ Cosmeport Businesses Tarte Businesses 2025 2026 YoY change (ratio) 2025 2026 YoY change (ratio) 2025 2026 YoY change (ratio) Japan Asia/ others Japan Asia/ others Japan Asia/ others Japan Asia/ others Japan Asia/ others Japan Asia/ others North America Europe/ others North America Europe/ others North America Europe/ others 1Q 14.7 1.0 12.9 1.6 -12.7% +56.9% 9.0 0.2 7.8 0.1 -13.5% -37.5% 14.6 2.6 16.3 2.5 +11.3% -4.2% 2Q 13.1 1.4 13.7 1.6 +3.9% +14.5% 10.2 0.1 10.3 0.3 +0.7% +68.4% 14.1 2.2 15.6 3.2 +10.4% +44.0% 3Q 13.5 1.2 10.8 0.1 16.2 2.7 4Q 14.4 1.6 10.2 0.0 13.4 3.0 Subtotal 56.0 5.3 40.4 0.5 58.4 10.6 Total sales 61.4 41.0 69.1 OP (ratio) 5.4(8.8%) 4.6(11.3%) 5.4(7.9%) Global Sales of Major Group Businesses and Major Brands —Quarterly *The Accounting Standard for Revenue Recognition is applied for major group businesses, but not applied for major brands.
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33 Offline (billion yen) China 2025 2026 YoY change 1Q 1.0 1.1 +9.8% 2Q 1.4 1.8 +29.8% 3Q 0.9 4Q 1.6 Total 5.0 E-commerce/TravelRetail Sales (by region) —Quarterly *The Accounting Standard for Revenue Recognition is not applied. EC (billion yen) Total YoY change Japan China Other Asian countries North America, others 2025 2026 2025 2026 YoY change 2025 2026 YoY change 2025 2026 YoY change 2025 2026 YoY change 1Q 12.9 15.4 +19.4% 4.8 5.1 +4.4% 1.8 2.5 +38.8% 0.3 0.5 +61.3% 5.9 7.3 +23.6% 2Q 15.9 19.8 +24.3% 5.2 6.1 +17.3% 3.1 3.7 +19.4% 0.4 0.6 +50.0% 7.1 9.3 +30.1% 3Q 13.8 4.8 1.8 0.5 6.6 4Q 16.5 6.2 3.6 0.5 6.1 Total 59.3 21.1 10.4 1.8 25.8 TR (billion yen) Total YoY change Japan China Other Asian countries North America, others 2025 2026 2025 2026 YoY change 2025 2026 YoY change 2025 2026 YoY change 2025 2026 YoY change 1Q 5.6 5.6 +1.1% 2.7 1.6 -38.8% 1.8 2.8 +53.7% 0.9 1.1 +13.5% 0.0 0.0 -3.8% 2Q 5.7 6.9 +21.5% 2.3 1.9 -16.2% 2.4 3.3 +39.0% 0.9 1.6 +70.0% 0.0 0.0 -% 3Q 4.1 1.9 0.9 1.2 0.0 4Q 6.0 2.4 1.5 2.0 0.0 Total 21.5 9.4 6.8 5.2 0.0
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34 2026 Jan. – Mar. Jan. – Jun. 156.8 158.1 22.6 23.0 0.107 0.106 2025 Jan. – Mar. Jan. – Jun. Jan. – Sep. Jan. – Dec. US$ 152.6 148.6 148.2 149.7 CN¥ 20.9 20.4 20.5 20.8 KR₩ 0.105 0.104 0.105 0.105 Foreign Exchange Rates—Cumulative (yen)
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35 Nine Strategic Themes for Achieving the Milestone2030 (Project KUYO) 1) HD: Establish group cohesiveness and transform human resources 2) KO: Integrate operations of KOSÉ and its Japanese sales company, KOSÉ Sales 3) KO/KCP: Build autonomous growth models for the DECORTÉ and mass brand businesses 4) KO/AL/KCP: Improve management efficiency through the consolidation of functions at overseas bases 5) KO/AL/KCP: Strategic procurement through collaboration among group purchasing functions 6) KO/KIC/AL: Optimize the production, logistics, SCM framework, and strengthen cost competitiveness 7) KO/AL: Strengthen product development capabilities through collaborative research institute initiatives 8) HD: Build a management control infrastructure (synergy creation) 9) HD: Upgrade existing investment business and build a framework for strategic investments to achieve inorganic growth *HD: KOSÉ Holdings; KO: KOSÉ business; AL: ALBION business; KCP: KOSÉ Cosmeport business; KIC: KOSÉ INDUSTRIES
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36 ◆ The Minami Alps factory started full-scale operations in July 2026. Promoting a "local production for local consumption" model for energy ◆ Positioned "water" at the core of the Group's environmental strategy and formulated the Water Story: "Water, Life, Beauty." In addition to maximizing the use of Yamanashi Prefecture‘s abundant water for cosmetics production,the factory adopts CO2-free "green hydrogen" produced in the prefecture and electricity from prefectural hydroelectric power generation. Furthermore, it establishes a safe and efficient "human-first" production system through advanced mechanization and the introduction of assist equipment. Taking the launch of the Minami Alps Factory as an opportunity, we formulated the Water Story "Water, Life, Beauty" as part of our new initiatives centered on "water," the core of our environmental strategy. We are promoting unique Group-wide efforts to conserve water resources. Reference: KOSÉ Holdings corporate website “Water, Life, Beauty” https://koseholdings.co.jp/ja/sustainability/environment/water/(Japanese only) Sustainability Strategy: Start of Operations at the Minami Alps Factory and Formulation of the Water Story
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37 *Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded. In addition, cases where the percentage of change exceeds1,000% are shown as “ -%”. These materials include estimates on the basis of the outlook on the future and plans as of August 6, 2026, but are not promises by KOSÉ Holdings Corporation regarding future performance. Actual results may differ from these forecasts due to risks associated with economic trends and other items as well as to other uncertainties. KOSÉ Holdings Corporation accepts no responsibility whatsoever with regard to any possible mistakes, missing information and other errors in the data and text in these materials. These materials were prepared for the purpose of providing information concerning the finances, management strategies and other aspects of KOSÉ Holdings Corporation to assist in making investment decisions. This is not a solicitation to purchase securities issued by KOSÉ Holdings Corporation. Investors are cautioned not to rely solely on these materials when making investment decisions. Investors are asked to reach their own decisions regarding investments. KOSÉ Holdings Corporation assumes no responsibility whatsoever for problems, losses and damages of any type resulting from the use of these materials. ➢ 2026 Earnings Announcement Schedule (tentative) 3rd quarter earnings announcement: November 10, 2026 Full-year earnings announcement: February 15, 2027