Interim report
Page 1
KOSÉ August 6 , 2026 Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 31 , 2026 ( Six Months Ended June 30 , 2026 ) Company name : KOSÉ Holdings Corporation Stock code : 4922 President & Group COO : Koichi Shibusawa [ Japanese GAAP ] Stock listing : Tokyo Stock Exchange , Prime Market URL : https://koseholdings.co.jp/en/ Tel : + 81- ( 0 ) 3-3273-1511 Contact : Hiroko Hanakura , General Manager of IR Department Scheduled date of filing of Semi - annual Report : August 10 , 2026 Scheduled date of dividend payment : September 10 , 2026 Preparation of supplementary materials for financial results : Yes Holding of financial results meeting : Yes ( for institutional investors and analysts ) 1. Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( January 1 , 2026 - June 30 , 2026 ) ( 1 ) Consolidated financial results ( Rounded down to million yen ) ( YoY change % represents changes from the previous fiscal year ) YOY Net sales change ( Million yen ) ( % ) Operating profit ( Million yen ) ΥΟΥ change Ordinary profit YOY change Profit attributable to owners of parent YOY change ( % ) ( Million yen ) ( % ) ( Million yen ) ( % ) 2Q 2026 164,915 2.7 6,617 ( 41.5 ) 8,816 ( 8.2 ) 5,682 ( 19.9 ) 2Q 2025 160,524 0.9 11,319 ( 17.7 ) 9,607 ( 49.1 ) 7,096 ( 38.9 ) Note : Comprehensive income ( million yen ) 2Q 2026 : 6,257 ( Up 167.2 % ) 2Q 2025 : 2,341 ( down 86.7 % ) 2Q 2026 2Q 2025 Net income per share Net income per share ( basic ) ( Yen ) 99.84 124.36 ( 2 ) Consolidated financial position 2Q 2026 2025 ( diluted ) ( Yen ) Total assets ( Million yen ) Net assets ( Million yen ) Equity ratio ( % ) 391,070 393,454 304,740 304,784 72.7 72.2 2Q 2026 : 284,428 2025 : 284,193 Ref .: Shareholders ' equity ( million yen ) 2. Dividends 2025 2026 2026 ( forecast ) Net assets per share ( Yen ) 5,011.92 4,979.35 Dividend per share 1Q - end ( Yen ) 2Q - end ( Yen ) 3Q - end ( Yen ) Year - end ( Yen ) Total ( Yen ) 70.00 70.00 70.00 80.00 140.00 150.00 Note : Revisions to the most recently announced dividend forecast : None The year - end dividend forecast for 2026 comprises an ordinary dividend of 70.00 yen and a commemorative dividend of 10.00 yen . 3. Consolidated Forecast for 2026 ( January 1 , 2026 - December 31 , 2026 ) Full year ( YoY change % represents changes from the previous fiscal year ) Profit attributable Net sales 350,000 YoY change ( Million yen ) ( % ) 6.0 Operating YOY profit change ( Million yen ) 20,000 ( % ) 8.3 Ordinary profit ( Million yen ) ( % ) 21,000 ( 2.2 ) YOY change to owners of parent ( Million yen ) YoY change Net income per share ( % ) 12,100 ( 19.9 ) ( Yen ) 213.21 Note : Revisions to the most recently announced consolidated forecast : None
Page 2
* Notes (1) Significant changes in scope of consolidation during the period: None Newly added: - Excluded: - (2) Application of special accounting methods for presenting consolidated interim financial statements: None (3) Changes in accounting policies and accounting-based estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others : None 2) Changes in accounting policies other than 1) above : None 3) Changes in accounting-based estimates : None 4) Restatements : None (4) Number of shares outstanding (common stock) 1) Number of shares outstanding (incl. treasury shares) at end of the period As of June 30, 2026 60,592,541 shares As of December 31, 2025 60,592,541 shares 2) Number of treasury shares at end of the period As of June 30, 2026 3,842,095 shares As of December 31, 2025 3,518,215 shares 3) Average number of shares outstanding during the period 2Q 2026 56,917,454 shares 2Q 2025 57,068,008 shares Note 1: The current financial report is not subject to quarterly (semi-annual) review by certified public accountants or auditing firms. Note 2: Cautionary statement with respect to forward-looking statements These materials contain forward-looking statements and statements of this nature based on assumptions judged to be valid and information available to KOSÉ Holdings as of the announcement date of the summary. These statements are not promised by KOSÉ Holdings regarding future performance. As such, actual results may differ significantly from these projections resulting from changes in the economic environment and other risks and uncertainties. For discussion of the assumptions and other factors considered by KOSÉ Holdings in preparing the above projections, please refer to the section “1. Qualitative Information on Consolidated Interim Financial Performance, (2) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 3 of the attachments.
Page 3
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 1 Contents of Attachments 1. Qualitative Information on Consolidated Interim Financial Performance 2 (1) Explanation of Results of Operations 2 (2) Explanation of Consolidated Forecast and Other Forward-looking Statements 3 2. Details of Stock, etc. 4 (1) Total Number of Shares, etc. 4 (2) Transition of Total Number of Shares Outstanding and Amount of Share Capital 4 (3) Voting Rights 4 3. Consolidated Interim Financial Statements and Notes 5 (1) Consolidated Interim Balance Sheet 5 (2) Consolidated Interim Statements of Income and Comprehensive Income 7 (3) Consolidated Interim Statement of Cash Flows 9 (4) Notes to Consolidated Interim Financial Statements 11 Changes in Presentation 11 Going Concern Assumption 11 Precaution Concerning Significant Changes in Shareholders’ Equity 11 Segment and Other Information 11 Business Combinations 13 Information Concerning Revenue Recognition 14 Subsequent Events 15
Page 4
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 2 1. Qualitative Information on Consolidated Interim Financial Performance (1) Explanation of Results of Operations Six Months Ended June 30, 2026 (January 1, 2026 – June 30, 2026) Millions of yen, % Operating segment 2Q 2025 (Jan. 1, 2025 – Jun. 30, 2025) 2Q 2026 (Jan. 1, 2026 – Jun. 30, 2026) YoY change Amount % comp. Amount % comp. Amount % Cosmetics 127,915 79.7 133,305 80.8 5,389 4.2 Cosmetaries 31,257 19.5 30,185 18.3 (1,072) (3.4) Others 1,351 0.8 1,425 0.9 73 5.5 Total net sales 160,524 100.0 164,915 100.0 4,390 2.7 2Q 2025 (Jan. 1, 2025 – Jun. 30, 2025) 2Q 2026 (Jan. 1, 2026 – Jun. 30, 2026) YoY change Amount % of sales Amount % of sales Amount % Operating profit 11,319 7.1 6,617 4.0 (4,702) (41.5) Ordinary profit 9,607 6.0 8,816 5.3 (790) (8.2) Profit attributable to owners of parent 7,096 4.4 5,682 3.4 (1,414) (19.9) In the first half (January 1 to June 30) of 2026, sales were down at the ALBION and KOSÉ Cosmeport businesses and higher at the Tarte business and in the China duty-free sector of the KOSÉ business. As a result, consolidated sales increased 2.7% from the same period of 2025 to 164,915 million yen (up 0.2% after excluding the effects of changes in foreign exchange rates). Overseas sales were 38.6% of total sales. Operating profit fell 41.5% from the same period of 2025 to 6,617 million yen. Although earnings were high at the KOSÉ business, lower earnings at the ALBION and KOSÉ Cosmeport businesses impacted the consolidated results. Ordinary profit, including a higher foreign exchange gain due to the yen’ s weakness, was down 8.2% to 8,816 million yen. Profit attributable to owners of parent was 5,682 million yen, a decline of 19.9% from one year earlier when there was a gain on sale of non-current assets of 2,715 million yen. In the cosmetics business segment, sales increased because of higher sales in the high prestige category. In the high prestige category, although sales at the ALBION business were down, sales at the Tarte business and DECORTÉ sales in the KOSÉ business increased. In the prestige category, sales decreased as higher sales of ONE BY KOSÉ, a core brand of the KOSÉ business were offset by lower sales of the SEKKISEI and other brands. The segment operating profit decreased. Although earnings at the KOSÉ business 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. As a result, sales in this business segment increased 4.2% from the same period of 2025 to 133,305 million yen and operating profit was down 19.5% to 7,875 million yen. In the cosmetaries business segment, sales were down from one year earlier. At the KOSÉ Cosmeport business, sales of the SUNCUT® and Softymo brands, which are core brands of this business, were higher, and CLEAR TURN sales decreased because of intense competition. The segment operating profit decreased because of a lower gross profit at the KOSÉ Cosmeport business, the result of a sales decline, higher cost of sales ratio, and higher marketing expenses for major marketing campaign.
Page 5
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 3 As a result, sales in this business segment decreased 3.4% from the same period of 2025 to 30,185 million yen and operating profit decreased 62.6% to 1,411 million yen. Sales in the others business segment increased 5.5% from the same period of 2025 to 1,425 million yen and operating profit decreased 15.0% to 614 million yen. Net Sales by Region (Sales to Third Parties) Millions of yen, % 2Q 2025 (Jan. 1, 2025 – Jun. 30, 2025) 2Q 2026 (Jan. 1, 2026 – Jun. 30, 2026) YoY change Amount % comp. Amount % comp. Amount % Japan 104,768 65.3 101,196 61.4 (3,571) (3.4) Asia 21,083 13.1 26,141 15.9 5,058 24.0 North America 30,839 19.2 32,658 19.8 1,819 5.9 Others 3,833 2.4 4,918 3.0 1,085 28.3 Total net sales 160,524 100.0 164,915 100.0 4,390 2.7 Japan Sales decreased from one year earlier. Higher ONE BY KOSÉ sales were offset by lower sales at the ALBION and KOSÉ Cosmeport businesses. ONE BY KOSÉ sales were brisk for new and existing products. Sales of DECORTÉ brand products decreased year on year, reflecting a high base effect from the launch of a major new product in the same period of 2025. In the ALBION business, sales decreased mainly due to a drop in domestic duty-free sales, which was affected by flight reductions caused by travel restrictions between Japan and China. Sales at the KOSÉ Cosmeport business were lower because of intense competition. As a result, sales in Japan decreased 3.4% from the same period of 2025 to 101,196 million yen. Asia There was double- digit sales growth in Asia. 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. In mainland China, strong sales of promotional sets featuring “AQ PORE BLACKHEAD DISSOLVER” (Deep Pore Cleanser) contributed to higher revenue. Furthermore, the PAÑPURI business also contributed to overall sales growth, driven by strong sales in Thailand and new store openings. As a result, sales in Asia increased 24.0% from the same period of 2025 to 26,141 million yen. North America/Others In the Tarte business, both store-level sell-through and shipments achieved record highs, driven by expanded sales of core products at Sephora and strong sales on TikTok. In the KOSÉ business, sales declined year on year due to a reactionary drop from a large order for SEKKISEI in the same period of 2025. As a result, sales in North America increased 5.9% from the same period of 2025 to 32,658 million yen, and sales in Others (including Europe) increased 28.3% to 4,918 million yen. (2) Explanation of Consolidated Forecast and Other Forward-looking Statements There are no revisions to the full-year earnings forecast announced on February 12, 2026.
Page 6
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 4 2. Details of Stock, etc. (1) Total Number of Shares, etc. (i) Total number of shares Class Total number of authorized shares (Shares) Common stock 200,000,000 Total 200,000,000 (ii) Outstanding shares Class Number of shares outstanding as of Jun. 30, 2026 (Shares) Number of shares outstanding as of the filing date (August 6, 2026) (Shares) Name of financial instruments exchange or authorized financial instruments firms association (where shares are listed or registered) Description Common stock 60,592,541 60,592,541 Prime Market of Tokyo Stock Exchange The number of shares per one unit is 100 shares. Total 60,592,541 60,592,541 - - (2) Transition of Total Number of Shares Outstanding and Amount of Share Capital Date Increase (decrease) in total number of shares outstanding (Thousand shares) Balance of total number of shares outstanding (Thousand shares) Increase (decrease) in share capital (Million yen) Balance of share capital (Million yen) Increase (decrease) in legal capital surplus (Million yen) Balance of legal capital surplus (Million yen) Jan. 1, 2026 – Jun. 30, 2026 - 60,592 - 4,848 - 6,390 (3) Voting Rights (i) Outstanding shares As of June 30, 2026 Category Number of shares (Shares) Number of voting rights (Units) Description Shares with no voting rights - - - Shares with restricted voting rights (treasury shares, etc.) - - - Shares with restricted voting rights (other) - - - Shares with full voting rights (treasury shares, etc.) Common stock 3,842,000 - - Shares with full voting rights (other) Common stock 56,599,500 565,995 - Odd-lot shares Common stock 151,041 - Less than one unit (fewer than 100 shares) Total number of shares outstanding 60,592,541 - - Voting rights held by all shareholders - 565,995 - Note: “Shares with full voting rights (other)” of common stock includes 3,800 shares of unknown holders’ stock registered under the name of Japan Securities Depository Center, Inc. “Number of voting rights” includes 38 units of voting rights related to such shares with full voting rights under the name of Japan Securities Depository Center, Inc. (ii) Treasury shares, etc. As of June 30, 2026 Name of shareholder Address of shareholder Number of shares held in own name (Shares) Number of shares held in others’ name (Shares) Total number of shares held (Shares) Ratio against total number of shares outstanding (%) KOSÉ Holdings Corporation 3-6-2 Nihonbashi, Chuo-ku, Tokyo 3,842,000 - 3,842,000 6.34 Total - 3,842,000 - 3,842,000 6.34
Page 7
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 5 3. Consolidated Interim Financial Statements and Notes (1) Consolidated Interim Balance Sheet Millions of yen 2025 (As of Dec. 31, 2025) 2Q 2026 (As of Jun. 30, 2026) Assets Current assets Cash and deposits 92,462 76,837 Notes and accounts receivable-trade 56,075 50,758 Merchandise and finished goods 43,537 44,442 Work in process 3,931 4,180 Raw materials and supplies 25,551 26,976 Other 7,529 7,953 Allowance for doubtful accounts (141) (411) Total current assets 228,947 210,737 Non-current assets Property, plant and equipment Buildings and structures 54,564 54,640 Accumulated depreciation (31,002) (31,772) Buildings and structures, net 23,562 22,867 Machinery, equipment and vehicles 22,998 23,007 Accumulated depreciation (20,468) (20,859) Machinery, equipment and vehicles, net 2,530 2,148 Tools, furniture and fixtures 43,765 43,207 Accumulated depreciation (37,910) (37,466) Tools, furniture and fixtures, net 5,855 5,740 Land 18,527 18,537 Leased assets 14,955 15,748 Accumulated depreciation (5,891) (6,489) Leased assets, net 9,063 9,258 Construction in progress 22,262 38,449 Total property, plant and equipment 81,800 97,002 Intangible assets Software 4,929 5,856 Goodwill 5,629 4,824 Other 14,933 12,839 Total intangible assets 25,492 23,520 Investments and other assets Investment securities 19,852 20,105 Retirement benefit asset 27,729 27,910 Deferred tax assets 5,639 7,262 Other 4,665 5,164 Allowance for doubtful accounts (673) (633) Total investments and other assets 57,213 59,810 Total non-current assets 164,506 180,333 Total assets 393,454 391,070
Page 8
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 6 Millions of yen 2025 (As of Dec. 31, 2025) 2Q 2026 (As of Jun. 30, 2026) Liabilities Current liabilities Notes and accounts payable-trade 9,204 11,624 Electronically recorded obligations- operating 13,127 9,397 Short-term borrowings 799 794 Lease liabilities 1,465 1,746 Accounts payable-other 15,563 12,160 Accrued expenses 10,417 10,111 Income taxes payable 2,641 3,211 Accrued consumption taxes 717 989 Refund liabilities 6,510 6,007 Other 2,765 4,094 Total current liabilities 63,212 60,137 Non-current liabilities Lease liabilities 8,391 8,251 Deferred tax liabilities 12,137 12,560 Other 4,928 5,381 Total non-current liabilities 25,457 26,192 Total liabilities 88,669 86,330 Net assets Shareholders’ equity Share capital 4,848 4,848 Capital surplus 206 713 Retained earnings 250,470 252,158 Treasury shares (9,031) (11,544) Total shareholders’ equity 246,493 246,175 Accumulated other comprehensive income Valuation difference on available-for-sale securities 4,441 4,598 Foreign currency translation adjustment 18,796 20,000 Remeasurements of defined benefit plans 14,461 13,653 Total accumulated other comprehensive income 37,699 38,253 Non-controlling interests 20,591 20,311 Total net assets 304,784 304,740 Total liabilities and net assets 393,454 391,070
Page 9
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 7 (2) Consolidated Interim Statements of Income and Comprehensive Income Consolidated Interim Statement of Income Millions of yen 2Q 2025 (Jan. 1, 2025 – Jun. 30, 2025) 2Q 2026 (Jan. 1, 2026 – Jun. 30, 2026) Net sales 160,524 164,915 Cost of sales 47,360 48,446 Gross profit 113,163 116,469 Selling, general and administrative expenses Advertising expenses 13,294 16,387 Promotion expenses 22,873 25,427 Freight and packing costs 10,103 10,915 Salaries and allowances 27,331 28,841 Retirement benefit expenses (56) (763) Legal welfare expenses 4,188 4,323 Depreciation 3,207 3,212 Other 20,901 21,508 Total selling, general and administrative expenses 101,844 109,851 Operating profit 11,319 6,617 Non-operating income Interest income 375 562 Dividend income 245 130 Consumption taxes refund 46 2 Foreign exchange gains - 1,277 Miscellaneous income 447 383 Total non-operating income 1,114 2,357 Non-operating expenses Interest expenses 32 31 Provision of allowance for doubtful accounts - 36 Loss on investments in investment partnerships 71 59 Foreign exchange losses 2,684 - Miscellaneous losses 39 31 Total non-operating expenses 2,827 158 Ordinary profit 9,607 8,816 Extraordinary income Gain on sale of non-current assets 2,715 4 Gain on sale of investment securities 96 148 Total extraordinary income 2,811 152 Extraordinary losses Loss on disposal of non-current assets 254 277 Impairment losses 0 41 Loss on valuation of investment securities - 1 Total extraordinary losses 254 320 Profit before income taxes 12,164 8,648 Income taxes-current 3,332 3,378 Income taxes-deferred 1,074 (394) Total income taxes 4,406 2,983 Profit 7,757 5,664 Profit (loss) attributable to non-controlling interests 660 (18) Profit attributable to owners of parent 7,096 5,682
Page 10
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 8 Consolidated Interim Statement of Comprehensive Income Millions of yen 2Q 2025 (Jan. 1, 2025 – Jun. 30, 2025) 2Q 2026 (Jan. 1, 2026 – Jun. 30, 2026) Profit 7,757 5,664 Other comprehensive income Valuation difference on available-for-sale securities (797) 198 Foreign currency translation adjustment (4,208) 1,232 Remeasurements of defined benefit plans, net of tax (409) (838) Total other comprehensive income (5,415) 592 Comprehensive income 2,341 6,257 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,785 6,253 Comprehensive income attributable to non- controlling interests 556 3
Page 11
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 9 (3) Consolidated Interim Statement of Cash Flows Millions of yen 2Q 2025 (Jan. 1, 2025 – Jun. 30, 2025) 2Q 2026 (Jan. 1, 2026 – Jun. 30, 2026) Cash flows from operating activities Profit before income taxes 12,164 8,648 Depreciation 5,242 4,903 Impairment losses 0 41 Amortization of goodwill 737 810 Increase (decrease) in allowance for doubtful accounts (23) 229 Decrease (increase) in retirement benefit asset (288) (1,343) Loss (gain) on disposal of non-current assets (2,461) 273 Interest and dividend income (621) (693) Interest expenses 32 31 Foreign exchange losses (gains) 956 (332) Loss (gain) on sale of investment securities (96) (148) Loss (gain) on valuation of investment securities - 1 Loss (gain) on investments in investment partnerships 71 59 Decrease (increase) in trade receivables 3,574 5,722 Decrease (increase) in inventories (5,373) (1,593) Increase (decrease) in trade payables 3,392 (2,131) Increase (decrease) in refund liabilities (1,281) (661) Decrease (increase) in other assets 413 494 Increase (decrease) in other liabilities (11,308) (1,465) Subtotal 5,130 12,846 Interest and dividends received 697 712 Interest paid (35) (11) Income taxes paid (6,139) (2,508) Net cash provided by (used in) operating activities (347) 11,040 Cash flows from investing activities Payments into time deposits (1,043) (1,112) Proceeds from withdrawal of time deposits 4,134 932 Purchase of property, plant and equipment (12,947) (17,842) Proceeds from sale of property, plant and equipment 3,006 100 Purchase of intangible assets (1,660) (1,571) Proceeds from sale of intangible assets 12 - Purchase of investment securities (3,645) (58) Proceeds from sale and redemption of investment securities 132 332 Net decrease (increase) in short-term loans receivable (3) 21 Purchase of shares of subsidiaries - (30) Decrease (increase) in investments and other assets (184) (26) Net cash provided by (used in) investing activities (12,197) (19,254)
Page 12
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 10 Millions of yen 2Q 2025 (Jan. 1, 2025 – Jun. 30, 2025) 2Q 2026 (Jan. 1, 2026 – Jun. 30, 2026) Cash flows from financing activities Net decrease (increase) in treasury shares (0) (3,473) Dividends paid (3,994) (3,995) Proceeds from share issuance to non-controlling shareholders 0 - Dividends paid to non-controlling interests (563) (283) Other, net (129) (659) Net cash provided by (used in) financing activities (4,686) (8,411) Effect of exchange rate change on cash and cash equivalents (1,939) 735 Net increase (decrease) in cash and cash equivalents (19,170) (15,890) Cash and cash equivalents at beginning of period 107,757 90,747 Cash and cash equivalents at end of period 88,586 74,856
Page 13
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 11 (4) Notes to Consolidated Interim Financial Statements Changes in Presentation (Interim Consolidated Statement of Income) "Subsidy income" under "Non- operating income," which was separately presented in the previous interim consolidated fiscal year, is included in "Miscellaneous income" from the current interim consolidated fiscal year due to its decreased financial materiality. To reflect this change in presentation, the interim consolidated financial statements for the previous interim consolidated fiscal year have been reclassified. As a result, 232 million ye n of "Subsidy income" under "Non- operating income" in the interim consolidated statements of income for the previous interim consolidated fiscal year has been reclassified into "Miscellaneous income.” Going Concern Assumption Not applicable. Precaution Concerning Significant Changes in Shareholders’ Equity Based on the resolution of the Board of Directors meeting held on February 12, 2026, the Company purchased 508,300 shares of its own stock during the first six months of 2026. In addition, based on the resolution of the Board of Directors meeting held on March 28, 2025, the Company disposed of 172,110 treasury shares as restricted stock for the KOSÉ Employee Stock Ownership Plan, and based on the resolution of the Board of Directors meeting held on Apr il 24, 2026, disposed of 15,127 treasury shares as restricted stock compensation. As a result, treasury shares increased by 2,512 million yen during the first six months of 2026 to 11,544 million yen at the end of the first half. Segment and Other Information Segment Information I. 2Q 2025 (Jan. 1, 2025 – Jun. 30, 2025) 1. Information related to net sales and profit or loss for each reportable segment Millions of yen Reportable segment Other (Note 1) Total Adjustment (Note 2) Amounts shown on consolidated interim statement of income (Note 3) Cosmetics Cosmetaries Subtotal Net sales (1) Sales to third parties 127,915 31,257 159,172 1,351 160,524 - 160,524 (2) Intragroup sales and transfers - - - 252 252 (252) - Total sales 127,915 31,257 159,172 1,603 160,776 (252) 160,524 Segment profit 9,786 3,769 13,555 722 14,278 (2,958) 11,319 Notes: 1. The “other” segment consists of activities that are not included in any of the reportable segments: amenity products, etc. 2. Adjustments to segment profit are as follows. Millions of yen Eliminations for intersegment transactions 54 Corporate expenses that cannot be allocated to reportable segments (3,013) Corporate expenses consist primarily of expenses related to the administration division at KOSÉ Holdings and expenses for basic research that are not assigned to any particular reportable segment. 3. Segment profit is adjusted with operating profit shown on the consolidated interim statement of income. 2. Information related to impairment losses on non-current assets and goodwill, etc. for each reportable segment Significant change in goodwill In the cosmetics segment, a provisional accounting treatment was used in 2024 for the acquisition of Puri Co.,
Page 14
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 12 Ltd. on December 26, 2024. This treatment was finalized in the second quarter of 2025. 3. Geographic sales information Millions of yen Japan Asia North America Other Total 104,768 21,083 30,839 3,833 160,524 II. 2Q 2026 (Jan. 1, 2026 – Jun. 30, 2026) 1. Information related to net sales and profit or loss for each reportable segment Millions of yen Reportable segment Other (Note 1) Total Adjustment (Note 2) Amounts shown on consolidated Interim statement of income (Note 3) Cosmetics Cosmetaries Subtotal Net sales (1) Sales to third parties 133,305 30,185 163,490 1,425 164,915 - 164,915 (2) Intragroup sales and transfers - - - 149 149 (149) - Total sales 133,305 30,185 163,490 1,574 165,065 (149) 164,915 Segment profit 7,875 1,411 9,286 614 9,901 (3,284) 6,617 Notes: 1. The “other” segment consists of activities that are not included in any of the reportable segments: amenity products, etc. 2. Adjustments to segment profit are as follows. Millions of yen Eliminations for intersegment transactions (105) Corporate expenses that cannot be allocated to reportable segments (3,178) Corporate expenses consist primarily of expenses related to the administration division at KOSÉ Holdings and expenses for basic research that are not assigned to any particular reportable segment. 3. Segment profit is adjusted with operating profit shown on the consolidated Interim statement of income. 2. Information related to impairment losses on non-current assets and goodwill, etc. for each reportable segment No significant items in 2Q 2026 3. Geographic sales information Millions of yen Japan Asia North America Other Total 101,196 26,141 32,658 4,918 164,915
Page 15
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 13 Business Combinations Transaction under common control Transition to a holding company structure through a split To change to a holding company structure, in accordance with a resolution of the Board of Directors of KOSÉ Corporation (now KOSÉ Holdings Corporation) on February 26, 2025, a corporate split on January 1, 2026, was used to transfer all business operations to the new KOSÉ Corporation. This company was previously KOSÉ Split Preparation Corporation and was renamed KOSÉ Corporation on January 1, 2026. The transfer did not include activities involving the control and administration of the business activities of companies in which the former KOSÉ Corporation holds stock, nor activities involving the operation of the K OSÉ Group. Due to this transfer, the original KOSÉ Corporation was renamed KOSÉ Holdings Corporation. 1. Overview of the corporate split (1) Details of the transferred business operations All business activities other than those involving the control and administration of the business activities of companies in which KOSÉ Holdings holds stock, and activities involving the operation of the KOSÉ Group (2) Date of the corporate split January 1, 2026 (3) Legal form used for the corporate split An absorption- type split in which KOSÉ Holdings Corporation serves as the splitting company and KOSÉ Corporation, a wholly owned subsidiary of KOSÉ Holdings Corporation, serves as the succeeding company. (4) Name of the company after the corporate split Splitting Company: KOSÉ Holdings Corporation Succeeding Company: KOSÉ Corporation (5) Purpose of the corporate split KOSÉ Holdings provides various types of value to customers worldwide as a beauty creation company with operations based on the mission of “Creating Beauty in a Sustainable World. ” Significant changes are taking place in the business climate for these activities. Achieving the goals of more growth in Japan and a major expansion of operations outside Japan will require going beyond business models used by KOSÉ Group in the past to become a source of a diverse array of products and services. To continue growing as these medium to long-term changes take place in its markets, the KOSÉ Group must reexamine the organizational structure used for business operations. As a result, the decision has been made for transition to a pure holding company structure for accomplishing the following two goals. (i) Make the KOSÉ Group more competitive and increase corporate value A pure holding company structure is expected to enable group companies to benefit from more synergies. Other anticipated benefits are better linkage and oversight of the functions of group companies, the more strategic allocation of KOSÉ Group resources among these companies, and the ability to take actions with even greater speed and flexibility. Overall, these benefits are expected to make the entire group more competitive and contribute to the growth of corporate value. (ii) Stronger governance of the KOSÉ Group Operations on a global scale using many business models will require the ability to make decisions quickly and allocate resources efficiently. The pure holding company structure is expected to facilitate the even stronger
Page 16
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 14 governance needed for the optimization of operations of group companies. 2. Summary of accounting methods applied Accounting methods used for this acquisition as a transaction under common control are based on “Accounting Standard for Business Combinations ” (ASBJ Statement No. 21, January 16, 2019) and “ Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10, January 16, 2019). Information Concerning Revenue Recognition Division of sales The KOSÉ Group has two reportable segments: cos metics business and cosmetaries business. These are business units where the Board of Directors performs periodic studies in order to determine the allocation of resources and evaluate performance. The revenue of these two businesses is presented as sales. In addition, geographic sales are divided according to the locations of customers. The relationship between these geographic divisions of revenue and segment sales is as follows. 2Q 2025 (Jan. 1, 2025 – Jun. 30, 2025) Millions of yen Japan Asia North America Others Total Cosmetics 73,098 20,154 30,839 3,823 127,915 Cosmetaries 30,318 928 - 9 31,257 Total 103,417 21,083 30,839 3,833 159,172 Others (Note) 1,245 0 - - 1,245 Revenue from contracts with customers 104,662 21,083 30,839 3,833 160,418 Other revenue 106 - - - 106 Sales to third parties 104,768 21,083 30,839 3,833 160,524 Note: The “others” segment consists of activities that are not included in any of the reportable segments: amenity products, etc. 2Q 2026 (Jan. 1, 2026 – Jun. 30, 2026) Millions of yen Japan Asia North America Others Total Cosmetics 70,627 25,157 32,627 4,893 133,305 Cosmetaries 29,145 983 31 25 30,185 Total 99,772 26,140 32,658 4,918 163,490 Others (Note) 1,296 1 - - 1,297 Revenue from contracts with customers 101,068 26,141 32,658 4,918 164,787 Other revenue 127 - - - 127 Sales to third parties 101,196 26,141 32,658 4,918 164,915 Note: The “others” segment consists of activities that are not included in any of the reportable segments: amenity products, etc.
Page 17
KOSÉ Holdings Corporation (4922) Financial Results for the Second Quarter of 2026 15 Subsequent Events On August 6, 2026, the Board of Directors of consolidated subsidiary KOSÉ Corporation and its subsidiary KOSÉ SALES CO., LTD. approved a resolution to implement the voluntary early retirement program for their employees. 1. Reason for implementing the voluntary early retirement program To realize its medium - to long- term vision, "Vision for Lifelong Beauty Partner —Milestone2030," the KOSÉ Group is currently undertaking structural reforms aimed at sound business growth. To further accelerate reinvestment for future growth, the Group has been advancing initiatives to optimize its cost, organizational, and personnel structures, as well as carrying out fundamental reforms of its business processes. As part of these reforms, the Group has decided to implement "Special Life Challenge," a program that offers additional premium severance pay on top of its voluntary early retirement program "Life Challenge*." For employees utilizing this program, the Group will also provide outplacement assistance to help them leverage their accumulated experience and expertise toward building new careers and achieving self - fulfillment outside the company. *Life Challenge: A program designed to support employees who choose to voluntarily retire before the mandatory retirement age based on their life plans, taking on new challenges for the second stage of their lives, such as starting their own business or changing careers. 2. Outline of the voluntary early retirement program (1) Target Companies KOSÉ Corporation and KOSÉ SALES CO., LTD. (2) Eligibility Employees with at least 5 years of continuous service who fall under any of the following categories: 1) Managerial staff aged 45 to 59 2) General staff aged 45 to 59 3) Re-employed staff aged 60 to 64 (3) Target number of Applicants Approximately 80 employees (4) Application Period From September 1, 2026 to September 15, 2026 (5) Date of Retirement January 31, 2027 (6) Preferential Conditions 1. Premium severance pay will be provided in addition to standard retirement benefits. 2. Outplacement support services will be available for up to one year after retirement for those who request them. 3. Effect on results of operations As the number and breakdown of applicants are currently undetermined, the impact on earnings forecasts will be disclosed promptly once determined. Note: This is a translation of Japanese Kessan Tanshin (including attachments), a summary of financial statements prepared in accordance with accounting principles generally accepted in Japan. This translation is prepared and provided for the purpose of the reader’s convenience. All readers are recommended to refer to the original version in Japanese of the report for complete information.