Bay Cosmetics Co., Ltd. (Headquarters: Izumisano City, Osaka Prefecture, hereinafter "the Company") will revamp its management system effective July 1, 2026. Motoki Hayase, current Executive Officer, will assume the position of President and CEO, overseeing the entire Company. Concurrently, Sota Kato, the current Representative Director, will become Vice President and COO of its group company, MD Co., Ltd., driving business growth from the group company's perspective. With this management overhaul, we will further enhance our proposal capabilities, which the Company has long valued, and strengthen our system to support our clients' brands in "selling" in the market. ■ Background - Towards a New Stage of Group Management The cosmetics market is experiencing increasing diversification of consumer needs and shortening product lifecycles, demanding that manufacturers possess not only "manufacturing capabilities" but also "selling capabilities" and "nurturing capabilities." To respond to these environmental changes and maximize the strengths of our group, which is built on marketing consulting, we are revamping our group-wide management system. Sota Kato - Appointed Vice President and COO of MD Co., Ltd. Sota Kato, the current Representative Director, will be appointed Vice President and COO of MD Co., Ltd. Sota Kato / Vice President and COO, MD Co., Ltd. Message from Kato From the perspective of group management, I will further strengthen the manufacturing and marketing capabilities that have been built up at Bay Cosmetics. Motoki Hayase - Appointed President and CEO of Bay Cosmetics Motoki Hayase, the current Executive Officer, will serve as President and CEO, overseeing the entire Company. We will further refine our proposal capabilities, which the Company has long valued, and achieve both quality improvement and speed to market through the integration of sales, research, and manufacturing. Furthermore, we will expand into related fields such as health foods, pharmace