Good morning and welcome, everyone. This is Jaeha Shin, Executive Vice President of APR.

Thank you for joining our fourth quarter 2025 earnings call. We sincerely appreciate the continued interest and support from our shareholders and investors.

Today, we will start with a performance review followed by Q&A session. Please note that our results are preliminary and subject to change during the audit process.

Furthermore, any forward-looking statement reflects our current outlook and may be impacted by market volatility. With that, let's review our results for the fourth quarter of 2025.

Please turn to page 3, overall revenue trend. In Q4 2025, consolidated revenue reached 548 billion won, marking another historic milestone.

Notably, just one year after reaching 200 billion in late 2024, we have now surpassed the 500 billion won mark for the first time. This growth was driven by strong Black Friday performance and successful SKU expansions.

Furthermore, our rapid penetration in the US, Japan, and Europe is creating a powerful spillover effect, driving record demand across our entire global footprint. Please turn to page 4.

For our fourth quarter results, in Q4 2025, we once again achieved all-time highs for both revenue and operating profit. Consolidated revenue surged 124% year-over-year to 548 billion won, while operating profit grew 228% to 130 billion won.

This resulted in an operating margin of 23.8%, representing a significant 7.5 percentage point expansion compared to the same period last year. Next, please turn to page 5, overall annual revenue trend.

2025 was a record year for APR, with annual revenue more than doubling to 1.5 trillion won. Driven by our unrivaled product competitiveness and aggressive global expansion, we are proud to mark our 11th consecutive year of growth.

Please turn to page 6, 2025 annual results. 2025 was a defining year, as we achieved exceptional top-line expansion while significantly enhancing profitability.

Annual revenue more than doubled year-over-year to 1.5 trillion won, while operating profit nearly tripled to 365 billion won, both record-breaking figures. This resulted in a robust annual operating margin of 24%, a 6.9 percentage point increase from the previous year.

Next, our fourth quarter results by division. Our Cosmetic and Beauty division surged 255% year-over-year to 413 billion won.

Since Q2, we have maintained 200% range growth, and this marks the first time cosmetic revenue has surpassed the 400 billion won milestone. Importantly, we are successfully mitigating revenue concentration.

Instead of relying on a single hero product, a broader lineup of core products ensures balanced performance, building a more resilient and sustainable business model. Moving to home beauty devices, revenue grew 19% to 123 billion won.

We maintained stable demand in core regions while capturing new markets. In Q4, we also introduced new products with enhanced functionalities, leveraging our in-house R&D and manufacturing capabilities.

Finally, others revenue decreased 51% to 12 billion won. This reflects our strategic decision to downsize non-core businesses and sharpen our focus on our primary growth drivers.

Please turn to page 8 for annual results by division. Our Cosmetic division reached 1.1 trillion won, establishing a self-sustaining cycle where rising brand awareness drives continuous demand.

Meanwhile, our Home Beauty Devices division grew 30% to 407 billion won, reflecting steady global momentum. Notably, as of January 2026, we surpassed the 6 million unit milestone in cumulative sales volume.

Next is our fourth quarter sales by regions. Q4 overseas revenue surged 203% year-over-year to 475 billion won.

Following our 300 billion won milestone in Q3, we maintained incredible momentum to break the 450 billion won mark this quarter. The global portion of our total revenue mix has shifted dramatically, jumping from 58% to 87% this year.

The US market continues to lead this expansion, now accounting for 47% of total revenue, while others regions have grown to 22% as our brand scales globally. I will provide more specific details on each regions in the following page.

Now please refer to page 10 for a detailed regional breakdown. Q4 was characterized by robust growth across nearly all global markets.

In Korea, revenue was 73 billion won, reflecting a year-over-year decline due to our strategic downsizing of non-core business. In the US, we achieved a record-breaking 255 billion won, a 270% increase year-over-year.

This is the first time a single country has surpassed the 250 billion won threshold in a single quarter. We have maintained consistent quarter-over-quarter growth for seven consecutive quarters since Q2 2024.

During Black Friday, a wide range of products, not just our best sellers, saw exceptional demand across both online and offline channels. In Japan, revenue grew 289% to 69 billion won, driven by the synergy between our online and offline presence.

Greater China reached 32 billion won, up 11%. Finally, our others region delivered a breakout performance, surging 192% to 119 billion won.

This is the first time quarterly revenue from emerging markets has topped 100 billion won, driven by rapid penetration and increasing demand in new regions. Please turn to page 11, annual sales breakdown by regions.

In 2025, overseas revenue surged 207% to 1.2 trillion won. Our overseas sales contribution jumped sharply from 55% to 80%, driven by explosive US momentum spreading globally.

This record performance cements our 1.2 trillion won milestone in the global markets. Also, there is one more achievement from 2025 I'd like to mention, something you won't find in the presentation material, and that is the incredible growth of our Medicube brand.

In 2025 alone, Medicube's revenue hit 1.4 trillion won. That is a massive 145% jump from the previous years of 578 billion won.

We're still waiting for final industry data to come out, but based on what we are seeing, we believe Medicube's 1.4 trillion won performance makes it the number one beauty brand in Korea for 2025. It's a huge milestone that really proves our brand power.

Please refer to page 12 for our summarized consolidated financial statement. This financial summary is provided for reference purposes only.

Next, I'd like to discuss our business outlook for 2026. For the full year, we project revenue of 2.1 trillion won, a 40% year-over-year increase, with a 25% range of operating margin.

Medicube's global momentum remains strong, and we are confident these targets are well within reach, especially when considering our strategic initiatives and recent sales performance. Geographically, we anticipate robust growth in the US, Japan, and Europe as we expand our channel presence.

In Europe specifically, we are scaling our online presence while expanding offline through B2B distribution. This dual approach will establish a strategic foothold for long-term growth in the region.

This is the end of our fourth quarter earnings call, and we'll wait for a while till our Korean earnings call, and... From

Hello. Congratulations on your good performance.

I have two questions. For the '26 guidance, US, Europe, Japan will be your primary market.

What is the respective ratio by each country, online and offline? For the fourth quarter, not only the US, and you had strong growth in Europe.

Can you share your growth in Europe?

For the financial year 2026 guidance, we don't have a specific number for this conference call for US, Europe, and Japan. They're going to have higher guidance, but we don't have any regional guidances.

However, if we can mention online and offline by region, US, the offline revenue will increase compared to this year. As you can see from the news, we had good results from Ulta Beauty, and from the end of the first half, we're going to enter big retailers in the next conference call or with other calls, once we confirm our entrance into other retailers, we are going to share the results with you.

For Japan, new device and Japan-specific distribution and EBD will have a better result in Japan. The Japanese revenue last year was about 180 billion, and I think we will see an increase of 100 billion.

In case of Europe, I couldn't specify the Europe number because we have a lot of sales from cross-border revenues and we have diversified channels for the sales. We haven't fully initiated our operation in Europe.

We've started setting up the subsidiary and opening the malls, but we don't have enough inventories, and it takes about 2 to 3 months to send the inventories to Europe. I think we can start the operation in full-fledged manner from March.

We started our operation in the UK, and the reaction is really good. If we include other regions in Europe, if we start marketing in full-fledged manner, then we can increase the offline sales, and that will increase the online sales as well.

We'll take the next question.

Hello. Thank you for the opportunity, and congratulations on your good performance.

I have two questions. First, across all regions, you recorded significant growth.

First, I'd like to mention about the US and in Amazon and as I've read various articles, you made significant growth from Ulta and TikTok as well. Throughout various channels, you may have different performances, can you give me some detail data?

Second, in Europe, you mentioned that you already entered the UK market and the growth is being materialized. What kind of products are being popular in the UK?

In Q3, what regions are the target in the whole entire European region? Also in Japan, you have been focusing on online growth, and I've seen the amount of vendor and deals for offline channel is increasing, and the growth is being materialized in the offline channel as well.

Can you give me the percentage of the growth in offline channel in Japan as also?

This is Ju-young from APR Communication. I'd like to double-check your questions.

Are you talking about channels in the UK or growth?

I'm asking about portions. Also, I'd like to know about the share of sales from cosmetic products and device segment as well.

Let me check this part and give you an answer. Let me answer the question.

For first, in on and offline, in the US, online market is very strong, and also offline market only remained 1-digit number in terms of growth rate. However, both channels are growing really fast.

About the UK market, the growth is on the rise, and best-selling products are very similar to those in the US market. Also, the best-selling items in the US can spread across the global market and also can be selling very well in the UK.

That's our logic, and the products are selling very well similarly in the UK. Also in the European region, we cannot enter all regions at the same time.

Starting from the UK, we're targeting France and Germany, and will be starting with online market. It's pretty much similar in Japan as well.

In Q3, 80% of the revenue was coming from online, and the rest was coming from offline. Not only one channel was very significant, across all regions, on and offline channels showed a significant growth.

Next question, please.

Congratulations on your good performance, and thank you for the opportunity for the question. I have some questions.

First is the color about the quarter 1 revenue and operating profit. The revenue growth for the device has reduced a little bit.

Can you provide the logic for that? Is there any data we can think about the inventory?

For the quarter 1 colors, I think we can get the exact figures if we look at the numbers by March. Now the season promotion for the quarter 1 has ended, and for the quarter 4 has ended, and compared to quarter 4 of 2025, we have reduced effect from the marketing for Q1, and the revenue is consistent.

However, as of now, we cannot specifically say expected color for the quarter 1. Internally, we are seeing that there will be a further step up.

We're expecting the revenue of 500 billion. For the operating profit, it is hard for us to estimate the number.

For the device, reduced growth for the device quarter-on-quarter, if you look at the sales number only, we have sold 20 29 290 million, it's the twice the number. Our priority region was Europe and US for the Q4.

However, the sales of device in that region is not high yet. That's why we see the higher growth in beauty.

From quarter 1, our second-generation lineup will be detailed. Booster Pro, the new device for that will be released, and we're going to promote globally, and the effect from the promotion can take effect.

Korea and Japan, we started with beauty products and followed by the popularity in device. Same for US and Europe, the sales in beauty can lead up to device growth.

For the inventory, once we finalize our audit, we can provide the results. We have a high stock of inventory because we have a supply management issue, we have to provide the inventory in a timely manner.

If you look at the inventory provision status, compared to revenue, we have low stock of inventory. We are working with the partners to make the inventory more sufficient.

We'll take the next question.

Thank you for the opportunity. Congratulations.

First off, my question is about on-offline portions, and if you say there are no significant changes, then I expect that there are promotional events in Q4 and there might be a lot of marketing expenses, but then your earnings recorded very well. What was the driver?

In 2026, there will be changes in top five or top 10 selling products. Also, I would like to get more details about your item categories in different events and SKUs as well.

The reason that gross profit increased is that there are some similar reasons for that. The portion in offline channel remained solid.

Also, when it comes to discounts, we didn't offer big discounts during promotional events. Top five, top 10 products, it has been a month passed.

We still have to look at the trend. In Q4, top 10 Medicube products account for more than half, and there are diversified hero products which are driving the growth.

Next question, please.

I have two questions. First, in terms of SG&A, how much marketing expense did you spend, and how did you allocate by country?

The second question is US revenue is better than our expectation, and what's the portion of Amazon and TikTok?

For the 4Q, the marketing was 18.33%. It's a bit of an increase compared to the last quarter because of the promotion and because we were focusing on the US.

That's why we have increased the marketing expense of 1 percentage point. However, we cannot share the numbers for each region.

Overall, our SG&A it's about 400 to 500 ROAS. In terms of US sales, if we divide by Amazon and TikTok, we should say that we have higher contribution from Amazon.

It's almost the twice of that TikTok. We're seeing the increase in TikTok sales.

However, TikTok is used as a sales channel as well as promotional sales. We have a higher sales proportion from Amazon.

We'll take the next question.

Hello. Thank you for the opportunity.

I think this is pretty much similar questions, but I want detail information. You mentioned that SG&A expense was 18.3%, which was slightly increased QoQ.

Your OP is very significant. Aside from marketing, you may have commissions as well.

Is there any items that recorded cost effectiveness in your expense? Also, you have great OP growth.

You may have a lot of cash reserve. How are you going to use this cash reserve in the future?

In Q4 alone, advertisement and sales commission didn't have a lot of savings effect because those expenses are pretty much similar or as is. Stable sales or operating income are the good reasons for the cost effectiveness.

We have really great aggressive momentum, and also we have good fixed cost leverage effect. That's the reason.

Since we have good growth momentum, we have a lot of PS and PI for our employees. According to our accounting policy, we pre-recognize this PS and PI in our balances.

There is no substantial increase in our balance sheets. We have improvement in sales mix in our revenue, and we didn't offer big discounts, and we're trying to improve COGS continuously.

Those are the reasons. When it comes to sales mix, revenue or sales from fashion segment reduced because it was eroding the overall revenues as well.

Reduced fashion segment improved COGS and overall revenue. Fixed costs leverage effect is being materialized because we only maintained 6% of fixed cost.

Rather than variable cost, this leverages our cost effectiveness. About cash reserve, we're maintaining our shareholder return policy, and we're preparing for cash dividends for our shareholders.

We're thinking about twice a year. Regular and interim cash dividend will be planned.

In March this year, since we provided big amount of cash dividend last year, there will be no big amount of cash dividend this year. About the exact amount, there will be public announcement.

Since we're expanding globally, we still need working capital. For stable sales in the global market, we need enough inventory and warehouse.

For that reason, we still need working capital. Even so, we still expect improved cash flow.

After shareholder return policy and consuming working capital, if there's any synergy area for our business, then we will think about reinvestment. However, aggressive investment or M&A are not in our plan currently.

Thank you. Next question, please.

Hello. Thank you for the opportunity for the question.

The first question is, in the US, what's the revenue from the Ulta sales? Last quarter, you have provided the guidance of Ulta for the sales 300 300 billion.

Did you revise this? Secondly, for the EBD device, what's the progress for the reaching the performance?

When can we see the actual profit from EBD devices?

In Q4, the sell-in B2B recognition sales was 16 billion. For the guidance for Ulta 100 billion, I think we can maintain that guidance because we might see the increase in Ulta sales.

If we combine all the sales, I think the sales can be distributed to Ulta. The offline sales overall for the US, we're seeing them positively.

However, we are not going to revise the guidance of 100 billion for Ulta. For the EBD sales progress, we are progressing with getting the certificate for two devices for EBD.

It is fast, and in the latter half of this year, we're going to release two products. As we make sales that we can recognize the sales.

However, we can invest some amount for the promotion. The reflection of that sales will happen after the sales occur.

However, if we want to see the meaningful reflection, I think it will be next year. The reason why we are doing the EBD division is because we are seeing the long term.

We're expecting that long-term effects. The anti-aging, advancing into that market early is very important.

We are doing the home beauty device for our portfolio and beauty. I think the EBD division will have a positive effect for both division.

We'll take the next question.

Thank you for the opportunity. About Ulta in Q4, you recorded 16 billion, and I think the number is better right now.

I wonder the current status quo, and even across Ulta, there are various major brands. Medicube's SKU sales progress and your scalability plan are my question.

Also, you mentioned about inventory earlier. Is there any possibility for inventory shortage or bottleneck?

Do you have any plans for that?

About market share in Ulta, I don't really know specifically right now. We don't have any data.

It varied by category, and we have prestige skincare. That's how we are recognized in Ulta Beauty.

I think we are ranked two, ranked number two in Q4. About display, and we're working very well with Ulta right now.

Although we're expanding, but when it comes to trend and ranks, we have different timing, and there are competitors and other brands. Our shelf is a little bit smaller than our competitors.

Currently we are expanding our products on the shelf. When it comes to SKU, and we have about 10 offline SKUs, and it will be increased to 20 approximately.

In the future, we will have substantial expansion in Ulta Beauty malls as well. When it comes to inventory, we have promotional events in Q4, and in order to have enough volume in inventory, we prepared a lot in Q3, and that worked very well in Q4.

After selling products, we experienced some inventory shortage. The trend remained solid, and they didn't have enough stocks in inventory.

Sales were not recorded at the right time. Right now we're working with OEM and ODM in order to increase the capa.

In the first half of this year, in order to achieve our business target and increase capacity, we already are planning for supply, and I think we can meet the demand. We cannot handle supply shortage with maritime transportation, we were going to use airplane transportation as well.

That will also be included in our SG&A expense. Although the amount will not be very big, but that will be included in our SG&A expense.

Next question, please.

I have a question regarding EBD. You said you are going to release new products by the end of this year.

In your three third quarter earnings call, you said one for EBD and one for PDRN. If you're talking about PDRN, it's going to be injectables.

Are you releasing injectables product or EBD product? In the third quarter, you said you are adding your resources, and I think 50 people will be enough for the sales force.

What do you think?

I said we are going to release about two products, and that's all EBD products. For the PDRN injectables, we are not able to release that.

We already have the factory and we're getting the certificate, and we have to get the fourth-rating certificate. It will take some time for the injectables.

I think we are going to release them by end 2027 or early 2028 because we're getting a new certificate. It will take some time until we release injectables.

For the sales team, we are increasing the resources. We have hired some experienced sales personnel.

The number of people for the sales, we haven't got the finalist number, but it's going to be lesser than 50 people. Next question, please.

Back again. Thank you very much.

I still have two questions. First, you mentioned about maritime transportation, and with this channel alone, you're thinking about airline transportation.

How much do you expect in terms of the share of airline in the transportation? When it comes to Ulta Beauty, you're going to enter into the European market with major retailers in Europe.

Do you have any specific malls? Can you share detail, for example, in the UK market?

Airline transportation, I can give you in terms of volume or in terms of amounts. In terms of volume, it might be around 10%, but the amount of money is substantial.

I believe that the amount of payment for airline transportation is substantial amount, I will double-check and give you detail. About deals with retailers in Europe, it's still underway.

Boots or Superdrug already rolled out our brands, but the number of SKUs is not very big, and the number of locations is not very big, and we're going to expand in terms of the number of locations and in terms of the number of SKUs. Next question, please.

Regarding the PDRN injectables, are you thinking about how are you going to secure salmon? Because securing the salmon will be the bottleneck.

We have already secured some locations for the salmon, and we have secured some partners for the long-term contract. It's usually from overseas.

We have a lot of locations that we partnered with in Europe, United States, and Canada. We don't think securing the raw material will be difficult.

We have talked with a lot of providers, and high-quality raw material can be secured. Recently, Canada and Alaska, US is the place that we are securing our raw materials from.

However, because we have some time until we release PDRN injectables, we are creating samples after we get the certificate. The amount is not too much.

We are not selling them. Securing the raw material will start from the end of next year whether we are going to secure the certificate.

We'll take the next question.

Thank you. I'm back again.

You told about a prestige cosmetic line in the US, and you mentioned 10 offline SKUs. When you mentioned about number one, what was the comparable comparison?

You also mentioned that the number of SKUs will be increased to 20, and you told me it will be within 20 2026. Can you also increase the number within Q1 or Q2 in 2026?

I double-checked it, and major brands' SKUs are more. They have more than 50, and some have 60 to 80 SKUs in the store.

However, our brand has about 15 SKUs, and Medicube will have 20+ SKUs in the future. For online channel, we already have 47 SKUs, and there's still potential for further scalability.

Next question, please.

Because of the time limit, we'll take one question. If you don't have any questions, we will conclude the session.

If you don't have any questions, we will conclude this session. Thank you for participating our earnings call.

We're going to put our effort for the further growth. Please continue to send your support for this year, and we will conclude the Q4 earnings call.

Thank you very much.