I would like to begin this message by expressing my deep appreciation to you for continuously providing us with your outstanding support.

 

Following the previous medium-term management plan for the period from 2021 through 2023, which started in 2021, we have been working on the following key strategies: 1) evolve domestic direct selling, 2) grow overseas businesses profitably, 3) profit contribution from brands under development, 4) strengthen operations and 5) expand new brands and domains of “beauty.” However, due to the prolonged COVID-19 pandemic, our performance has deviated from the initial plan both in Japan and overseas, and we regret the concern this has caused for our shareholders. Results bottomed out in 2022, and since that time, the strategies we have been pursuing have begun to bear fruit. In 2023, we have succeeded in driving a recovery in business performance and improving the profit and loss structure in the domestic business. In our consolidated Group performance, we achieved an increase in revenue and a significant growth in profits.

 

In line with these developments in our strategies, we have formulated a new medium-term management plan for the period from 2024 through 2026, which we announced in February this year. The Company has set a long-term vision, “VISION 2029,” geared toward the year 2029, which will mark the 100th anniversary of its founding. We designated the new medium-term management plan, which starts this year, as “three years of re-challenging and establishing a foundation for growth” to achieve VISION 2029. We will further refine our brands to strengthen our income-generating power in Japan and actively invest in and expand growth domains such as overseas and new businesses, etc.

We greatly appreciate our shareholders’ continuing support of the POLA ORBIS Group.

March 2024