Presentation Materials

for the 3rd Quarter of FY2024

May 10, 2024 istyle Inc.

Stock code: 3660

【Reference】 Changes in segment names and classification of specific services.

  • From FY ending June 30, 2024, changes in Segment names, etc. to be made to disclose information more in line with strategies and to reorganize business domain classifications.

Former Segments

New Segments

On Platform

Beauty

Service

Global

Other

BtoB service

BtoC service

E-commerce

Physical stores

EC・Whole sales

Physical stores

Media and others

Temporary

staffing agency

Investment & consultation

Name change

Name change

Classification change

BtoB service

Marketing

Solution

E-commerce

Retail

Physical stores

(Online, Offline)

EC・Whole sales

Physical stores

Global

Media and others

Temporary

staffing agency

Investment &

Other

consultation

BtoC

subscription service

© istyle Inc.

1

【Reference】 Business segment

Domestic

・BtoB service

Advertising/ solution service

Marketing

Solution

Marketing SaaS (Brand Official)

Media

Other

  • Temporary staffing agency
  • BtoC subscription service
  • Investment and consultation

Retail

DB

E-commerceStore

  • Domestic retail

E-commerce

Physical stores

Global

・ Overseas

Overseas

E-commerce, Wholesales Physical stores

Media

© istyle Inc.

2

Overview of Financial Results for the 3rd Quarter of FY2024

© istyle Inc.

3

Q1 - Q3 Cumulative (July - March) / Summary

Retail and Marketing Solution, drove increase in sales and profit.

  • Net sales at 41.0 billion yen for the three quarters (YoY +32.5%).
  • Operating income reached 1.46 billion yen, ahead of initial plan. Full-yearforecast will be revised upward due to strong performance.

Marketing Solution

Sales grew by 14% YoY with steady growth. Profit increased by 41% despite one-time expenses.

Retail (Online / Offline)

Sales continued to record strong growth in both EC and Stores, increasing sales by 46% YoY.

  • Stores: Sales increased by 56%, with the highest monthly sales, thanks not only to inbound sales, but also to domestic demand due to increased awareness.
  • EC: Sales increased by 30% due to the customer base nurtured through @cosme BEAUTY DAY in Q2.

Profit also increased by 119% to 1.9 billion yen.

Global

Sales declined due to challenging cross-border EC in China. Profit was affected by inventory write-downs in Q3, resulting in a larger deficit.

© istyle Inc.

4

Q1 - Q3 Cumulative (July - March) / Highlight

Consolidated Results

Businesses in Japan, such as Retail and Marketing Solution continued to drive increase in sales and profit.

Net sales

:

40,980

Million yen

YoY

:

+32.5

%

OP

:

1,455

Million yen

YoY

:

+167.6

%

Marketing Solution

Double-digit growth in sales due to steady growth, and profit increased

significantly despite 110 million yen in one-time expenses recorded in Q3.

Net sales

:

6,248

Million yen

YoY

:

+14.0

OP

:

1,222

Million yen

YoY

:

+40.6

%

%

Increase in sales and profit due to continued growth in Stores and customer

Retail

nurturing in EC.

30,516

+46.0

Net sales

:

Million yen

YoY

:

%

OP

:

1,933

Million yen

YoY

:

+118.7

%

Global

Decline in sales and profit due to inventory write-downs in Q3 in addition to challenging

cross-border EC in China and Korea businesses.

Net sales

:

2,932

Million yen

YoY

:

-8.6

%

OP

:

-187

Million yen

YoY

:

-108

Million yen

Other

Increase in profit due to improved profitability in temporary staffing business despite

the continuing shortage of beauty professionals.

Net sales

:

1,284

Million yen

YoY

:

-5.0

%

OP

:

199

Million yen

YoY

:

+7.9

%

  • Sales and profit figures are expressed in units of millions of yen (rounded)

© istyle Inc.

5

Q1 - Q3 Cumulative (July - March) / Overview of operating results (Progress to our target)

⁃ Revised full-year forecast upward, as profits at each stage achieved results ahead of initial plan (see p. 22 for details).

（Unit: Million yen）

Net sales

Gross point

SG&A

Operating income

Ordinary Income

Net income attributable to owners of the parent company

Q3/FY24

(Jul.-Mar.)

40,980

18,067

16,612

1,455

1,342

833

FY24 plan

% of Target

(Initial plan)

50,000

82.0%

-

-

-

-

1,200

121.3%

1,000

134.2%

700

119.0%

Q3/FY23

YoY

(Jul.-Mar.)

30,934

+32.5％

13,931

+29.7%

13,387

+24.1％

544

+167.6％

205

+553.7％

20

+813

© istyle Inc.

6

Trend in net sales

  • Sales on par with the full year of the previous year as of Q3.

Full-year plan

(Before Revision)

50,000

42,890

Q3 result

40,980

Consolidation of results from

three acquired overseas

COVID

companies as of Q1

impact start

34,401

32,193

30,950

30,934

30,564

28,470

25,467

Began overseas

23,609 23,186

E-commerce and

18,888

wholesale

businesses in Q3

14,282

Opened first store

9,663

First-year

Launched EC

7,141

in Mar. 2007

6,410

sales 0.9

business in

million yen

Nov. 2002

FY

00

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

(Unit: Million yen)

© istyle Inc.

7

Trends in segment sales (Quarterly)

  • Decline in sales QoQ as a rebound reaction to @cosme BEAUTY DAY in Q2 as in the previous year, but sales significantly increased YoY and OP ratio improved.

Consolidated OP ratio

Net sales

(Unit: Million yen)

Other

Global

Retail

Marketing

Solution

4.4%

2.6%

2.7%

2.3%

3.0%

3.3%

0.2%

YoY

+31.1%

14,668

13,863

12,449

431

11,956

1,008

419

11,157

10,577

434

823

465

472

1,101

9,200

450

1,189

1,177

429

1,004

1,024

11,108

10,588

8,820

8,325

7,618

7,377

5,902

1,845

1,890

1,745

1,977

2,094

2,122

2,033

FY23/Q1

Q2

Q3

Q4

FY24/Q1

Q2

Q3

YoY

-6.9%-18.0%

+43.5%

+16.5%

© istyle Inc.

8

Marketing

Solution

Trends in segment sales (Quarterly)

  • Net Sales: Double-digitgrowth in sales YoY due to improved advertising solutions in conjunction with retail sales promotion, despite decline in sales QoQ due to seasonality.
  • OP ratio: Decrease due to strengthened recruiting efforts and one-time software amortization expense of 112 million yen.

23.1%

Figure excludes

21.9%

one-time expenses

OP ratio

18.1%

18.9%

14.4%

15.0%

13.5%

13.4%

Net sales

YoY +16.5%

(Unit: Million yen)

BtoB service

1,845

1,890

1,745

1,977

2,094

2,122

2,033

Ad/solution services

Marketing SaaS

FY23/Q1

Q2

Q3

Q4

FY24/Q1

Q2

Q3

One-time software

amortization expense of

112million yen

Topics

© istyle Inc.

9

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Disclaimer

Istyle Inc. published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2024 06:08:55 UTC.