FY2024 2Q
Results Briefing Material
March 14, 2024

Premier Anti-Aging Co. Ltd.

TSE Growth Market 4934

INDEX

01 ｜Executive Summary
02 ｜FY2024 2Q Results

03 ｜Status by Segment
04 ｜Sustainability

05 ｜FY2024 Revised Earnings Forecast
06 ｜Appendix

Copyright©2024 Premier Anti-Aging Co.,Ltd.

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01 ｜Executive Summary

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01. Executive Summary

Executive Summary【FY2024 2Q Results】✓ Overall sales declines led to posting of operating loss, but loss amount was lessthan projected✓ Anti-aging business recorded declining sales and operating loss
✓ Recovery business achieved record-high sales and operating profit, exceeding
initial forecasts and showing good progress✓ Loss attributable to owners of parent worsened due to extraordinary losses related
to impairment of software in progress and contract losses, and the complete
reversal of deferred tax assets【FY2024 Revised Full-year Forecast】✓ Recent performance trends prompted us to revise downward the full-year forecast
for FY2024✓ The entire Company will work together on measures to get back on a growth pathfrom the second half onward.

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02 ｜ FY2024 2Q Results

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02. FY2024 2Q Results

Statement of income (year-on-year)✓ Despite sales growth in the newly added recovery business, struggles continue for DUO and CANADEL in the anti-aging
business, with sales in mail order/EC and wholesale declining and falling short of the same period last year and projections✓ Operating loss due to lower gross profit stemming from decreased anti-aging business sales. However, profit growth in therecovery business and suppression of ad spending meant a lower-than-forecast loss amount✓ Loss attributable to owners of parent significantly worsened due to extraordinary losses related to impairment of software in
progress and contract losses, coupled with the complete reversal of deferred tax assets（Millions of yen）

FY2023
1Q-2Q

FY2024
1Q-2Q

Increase/(decrease)

Percentagechange14,258

10,649(3,608)(25.3%)

ＬMail order/EC

10,317

7,051(3,265)(31.6%)

ＬWholesale

3,102

1,993

(1,108)(35.7%)

839

1,604

765

91.2%

Operating profit (loss)

109

(205)

(314)

－

Operating profit margin (%)

0.8%(1.9%)－(2.7pts)

Ordinary profit (loss)

95

(199)

(294)

－

Extraordinary losses

-

908

908

－

Income taxes - current

121

577

455

375.9%

Loss attributable to ownersof parent(26)(1,685)(1,659)－Net sales

ＬOthers

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02. FY2024 2Q Results

Statement of income✓ SG&A expenses including advertising expenses, outsourcing expenses, payroll and allowances, and R&D were suppressedcompared to the same period of last year
✓ On the other hand, a temporary loss was recorded as an extraordinary loss, and the reversal of deferred tax assets resulted
in a net loss for the second quarter(Millions of yen)

（Breakdown）
Ad expenses：3,626
Outsourcing：1,980
Payroll and allowances：792
R&D：213（Breakdown）
Impairment：492
Contract losses：397（Breakdown）
Reversal of DTA：517

Sales

CoGS

SG&A

Operatingloss

Non-operating Ordinary
incomeloss

Extraordinaryloss

Incometaxes

Net loss

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02. FY2024 2Q Results

Statement of income (quarterly comparison)✓ Net sales fell slightly in the anti-aging business, but growth in the recovery business led to overall net sales above 1Q✓ Despite increased profits in the recovery business, increased ad spending, mainly for new customer acquisitions and TVCMs
in the anti-aging business, led to an operating loss bigger than in 1Q（Millions of yen）
FY20232Q

FY2023
3Q

FY20234Q

FY20241Q

FY20242Q

QonQ
percentagechangeNet sales

6,867

6,351

5,790

5,264

5,385

2.3%

Mail order/EC

5,261

4,122

3,876

3,543

3,508

(1.0%)

Wholesale

1,172

1,586

952

1,044

949

(9.1%)

Others

432

642

961

677

927

37.0%

Gross profit

5,421

4,516

3,557

4,194

4,294

2.4%

SG&A Expenses

5,068

4,582

4,212

4,230

4,464

5.5%

Advertising expenses

2,430

1,809

1,313

1,632

1,994

22.2%

Outsourcing

1,252

1,205

1,169

1,032

947

(8.2%)

Payroll and allowances

293

430

393

428

364

(15.0%)

R&D

102

146

212

110

103

(6.5%)

Others

988

954

1,078

1,026

1,055

2.8%

Operating profit (loss)

353

(66)

(654)

(35)

(169)

－

Operating profit (％)

5.1%(1.0%)(11.3%)(0.7%)(3.2%)(2.5pts)

Ordinary profit (loss)

320

(51)

(674)

(26)

(172)

－

Quarterly profit (loss) attributableto owners of parent

172

(127)

(580)

(35)

(1,649)－Copyright©2024 Premier Anti-Aging Co.,Ltd.

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02. FY2024 2Q Results

Advertising expenses✓ Ad expenses/net sales fell from 38.4% in the same period last year to 34.1% but rose from 1Q✓ CPO remains high due to intense ad market competition. Restrained ad spending means continued lower new acquisitions✓ Continue to focus on improving the conversion rate at each stage through investing in advertising expenses

Breakdown ofadvertisingexpenses

CPO for mail order/EC and number of new
customer acquisitions

cf. QonQ ad expenses to net sales
FY2024 1Q）31.0％✓ Ad expenses/net sales

FY2024 2Q）37.0%

38.4％✓ New acquisition spending/net sales

clayence
CANADELDUO
Others
CPO

34.1％

23.0％

16.9％

5,475
Others

3,626

TVCM
OthersNewacquisitions

FY2023 1Q-2Q

TVCM
New
acquisitions

FY2024 1Q-2Q（Millions of yen）

8

9

1Q

10

11

12

1

2

2Q

3

3Q
FY2023

4

5

6

4Q

7

8

9

10

11

12

1

1Q
2Q
FY2024

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02. FY2024 2Q Results

Balance sheet (year-end comparison)✓ Lower non-current assets due to impairment of software in progress✓ Shareholder equity fell due to posting of net loss, but maintaining a healthy equity ratio

FY20234Q

FY2024
2Q（Millions of yen）

Increase/(decrease)

PercentagechangeTotal assets

12,135

10,625(1,509)(12.4%)

Current assets

9,229

8,368

(861)

(9.3%)

Inventories

1,909

1,673

(236)

(12.4%)

Non-current assets

2,905

2,256

(648)

(22.3%)

Intangible assets

1,511

1,075

(436)

(28.9%)

Total liabilities

4,525

4,702

176

3.9%

Current liabilities

3,016

3,315

298

9.9%

Non-current liabilities

1,509

1,386

(122)

(8.1%)

Total net assets

7,609

5,923

(1,686)(22.2%)

Total liabilities and net assets

12,135

10,625(1,509)(12.4%)

Equity ratio (%)

62.7%

55.7%

－

(7.0pts)＊Inventories = finished products + raw materials and supplies
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02. FY2024 2Q Results

Changes in financial condition (Balance sheet)✓ Inventories were significantly written down in the second half of the previous fiscal year. Continuously control inventory quantity✓ Implemented system impairment for the current fiscal year, eliminating future concerns considering changes in the businessenvironment（Millions of yen）

Total assets

Inventories(1)End of July 2023

End of January 2024

12,135

10,625

Factors

1,673- A large-scale write-down of stuck inventory has been
carried out- Promoting thorough inventory management

1,909

Intangible
assets

1,511

1,075

- Impairment due to discontinuation of sales systemdevelopment- Assets recorded in B/S mainly consist of goodwill/patent rights associated with the acquisition of Venex
and software in operation

Equity ratio

62.7%

55.7%

- Declined due to 2Q net loss
- Assets also decreased by 1,509 million yen(1) Total amount of finished products, raw materials and supplies

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02. FY2024 2Q Results

Consolidated balance sheet diagram✓ Proceed with inventory reduction and implement software impairment. Total assets decreased as a result of the reversal of deferred
tax assets✓ As of the end of 2Q, major concerns regarding B/S have been eliminated, and asset transparency and soundness have improved

End of July 2023
Inventories
1,909
Intangible assets
1,511
Investments andother assets
1,316

Total assets
12,135End of January 2024

(Millions of yen)

(Millions of yen)Interest-bearing
debt
2,260
Total liabilities
4,525
Total net assets
7,609(Amounts of assets decreased)

Inventories
1,673Interest-bearing debt
2,232

Intangible assets
1,075

Total liabilities
4,702

Investments and others
534

Total net assets
5,923

Total assets
10,625

Shareholders’equity5,904

Inventories: -236
Shareholders’equity7,590

Intangible assets: -436
Investments and other assets: 782

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03 ｜Status by Segment

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03. Status by Segment

Anti-aging business✓ In the anti-aging business, clayence performed as planned, but DUO continued to decline, CANADEL increased compared tothe previous quarter but decreased compared to the same period of previous fiscal year, resulting in sales decline for both mailorder and wholesale sales from the same period of the previous fiscal year
✓ Limited ad spending, but lower net sales caused a decline in gross profit, and we posted an operating loss

（Millions of yen）

FY2023
1Q-2Q

FY2024
1Q-2Q

Increase/(decrease)

PercentagechangeNet sales

14,2589,750(4,507)(31.6%)

Mail order/EC

10,317

7,051(3,265)(31.6%)

Wholesale

3,102

1,993

(1,108)(35.7%)

Others

839

705

(133)

(15.9%)

Operating profit (loss)

109

(360)

(469)

－

Operating profit margin (%)

0.8%(3.7%)－(4.5pts)

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03. Status by Segment

Anti-aging business (DUO)✓ Shift from balm to oil formulation and low-price balm products continues✓ Mail order/EC subscription cancellations exceeded new customer contracts; sales continue to fall, but at slower pace

Results ＆ Next Steps✓ Continue measures using beauty experts and influencers topromote product value to customers

Quarterly net sales of DUO（Millions of yen）

✓ Rolling out marketing measures in connection with a new
Yuko Araki commercial on air from November

6,000✓ Mail order/EC customer conversion rate uptrend at each
level

5,000

✓ Strengthen measures with beauty experts and influencers.
Continue brand communication through various contents
featuring Yuko Araki

4,000

Mail order/EC

Wholesale

Others

3,000
2,000
1,000

0
1Q

2Q

3Q
FY2023

4Q

1Q

2Q

FY2024

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03. Status by Segment

Anti-aging business (CANADEL)✓ Although sales increased compared to the previous quarter as a result of marketing measures linked to the new commercial,
new acquisitions were lower than planned due to the impact of persistently high advertising costs✓ "Cleansing Water" that removes oil-like makeup and "Gelée Lotion [quasi-drug product]" that moisturizes instantly will be
released on March 18th

Results ＆ Next Steps
Quarterly net sales of CANADEL✓ Rolling out marketing measures in conjunction with a new commercial
featuring Michiko Kichise on air from October✓ Set to launch new cleansing water and gelée lotion products on March 18,
with distribution to approximately 5,000 stores✓ Implement cross-media strategy leveraging beauty experts andinfluencers✓ Continue to strengthen CRM measures aimed at existing customers（Millions of yen）

Mail order/EC

Wholesale

Others

1Q

3Q

1Q

1,800
1,600
1,400

1,200
1,000
800
600
400
200
0
2Q

FY2023

4Q

2Q

FY2024

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03. Status by Segment

Anti-aging business (clayence)✓ Benefits from marketing in conjunction with TV commercial; sales of clayence, mainly color treatments, grow as forecast✓ Steady sales growth for quasi-drug foaming grey hair color treatment – highly effective at dyeing grey hair

Results ＆ Next Steps✓ Rolling out marketing measures in conjunction with a newcommercial featuring Rei Dan airing since November✓ New customers for color treatment growing in line with projections✓ Sales of foaming grey hair color treatment “Clayspa Quick Color”
growing✓ Expand shipments to an additional 500 stores in spring/summer 2024
✓ Promote product understanding and correct usage through beauty
experts and SNS to improve retention and cross-selling rates

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03. Status by Segment

Anti-aging business (brands under cultivation)✓ Launched new brands and running test marketing in rapid growth categories, including skin care for men, inner care, highconcentration vitamin C skin care, and skin care whose core ingredient is our proprietary stem cell extract

Results ＆ Next Steps✓ After SINTO VC performed well in test marketing,
we aim for increases in new customer
acquisitions by strengthening promotions throughinfluencers✓ C+mania enzyme face wash on advance saleat Don Quixote to be expanded to 7,000
stokists from March

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03. Status by Segment

Recovery business (Venex)✓ Achieved record-high net sales and operating profit; substantially higher than initial plan
✓ Business growth forecasts made at the time of acquisition being achieved ahead of schedule（Millions of yen）

FY2023
1Q-2Q

FY2024
1Q-2Q

Increase/(decrease)

PercentagechangeNet sales

－

899

－

－

Operating profit

－

151

－

－

Operating profit margin (%)

－

16.8%

－

－

*Same period last year not recorded as it was prior to the acquisition of Venex Co., Ltd.

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03. Status by Segment

Recovery business (Venex)✓ Started sales of the newly designed, more stylish “Standard Dry Plus” (registered as general medical equipment)✓ Continued coordination with Premier Anti-Aging and boosted the supply chain, creating the base for business drive in thesecond half as planned

Results✓ Harnessed group synergies to develop new sales channels
and achieved channel expansion✓ Venex conducted its first “Recycle Action” campaign,collecting clothes and accessories and reusing them insupport of athletes and to make recuperative items
Nagoya Fighting Eagles✓ Signed more new contracts with top athletes and teams andconducted collaborative product development and sales【New contracts】
・J.League pro soccer player Ryoma Watanabe
・B1 League Nagoya Fighting Eagles（Third B1 League team contract）
・F League Pro Futsal Club Shonan Bellmare Futsal ClubWon the Best Goal Award at the 2023 J League Awards
Ryoma Watanabe x VENEX collaboration recovery wear worn

Shonan Bellmare Futsal Club

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03. Status by Segment

Recovery business (Venex)✓ Ayako Imoto appointed as the new Venex brand ambassador✓ Suggest new applications and different recuperation settings for recovery wear beyond bedtime

Next Steps

We want to encourage everyone to adopt a healthy cycle of “work hard, get tired, recover, and do it all again.”
Our concept is “Rikabaru” – a portmanteau combining the Japanese rikaba (recover) and ganbaru (work hard).
While recovery wear is typically associated with bedtime, our Venex product promotions will include ideas for
new applications and different ways to recuperate.
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04 ｜Sustainability

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04．Sustainability

Sustainability Initiatives
Initiatives for resolving social issues based on materialities identified in our sustainability policy
Improving well-being

2024 Certified Health & Productivity Management
Outstanding Organizations✓ Certified as a 2024 Health & Productivity Management
Outstanding Organization run by the Ministry of Economy,
Trade and Industry (METI) and Nippon Kenko Kaigi✓ Certified for two consecutive years in recognition of
initiatives for facilitating communication and improvements
in productivity and wellbeing

Improving well-being

International Women’s Day (IWD) internal event✓ Held IWD event on March 8 to raiseawareness on gender equality towardrealizing a society in which everyone
can shine as they are✓ Gave mimosa flowers – the IWD
symbol - to all entering the office on
the day
Providing unique value

Ongoing social contribution initiatives✓ Donated products to the victims ofthe 2024 Noto Peninsula
Earthquake through the Social
Emergency Management Alliance(SEMA)
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05 ｜FY2024 Revised Earnings Forecast

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05. FY2024 Revised Earnings Forecasts

FY2024 Revised Earnings Forecasts✓ Considering the current business environment and performance trends, sales and profit and loss at each stage have beenrevised downward(Millions of yen)

FY2024
Initial plan

FY2024
Revisedplan

Increase/(decrease)

Percentagechange(A)(B)(B)－(A)(B)÷(A)

26,40026,00020,000(6,000)(23.1%)

Operating profit (loss)

(611)

100

(1,000)(1,100)－Operating profit margin (%)(2.3%)

0.4%(5.0%)(5.4pts)－

Ordinary profit (loss)

(631)

100

(1,000)(1,100)－

Profit (loss) attributable toowners of parent

(733)

200

(2,500)(2,700)－

FY2023
ActualNet sales

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05. FY2024 Revised Earnings Forecasts

FY2024 Revised Earnings Forecasts✓ The main factors behind the revision of the earnings forecasts are as follows(Millions of yen)

FY2024
Initial plan(A)

Net sales

Operating profit(loss)

One-time loss
Profit (loss)
attributable toowners of parent

FY2024
Revisedplan(B)

Increase/(decrease)(B)-(A)

Percentagechange(B)÷(A)

Main factors

26,00020,000(6,000)- Number of new acquisitions in mail orderbusiness lower than planned(23.1%)- Existing customer conversion rate in mail orderbusiness lower than planned

100(1,000)(1,100)－- Gross profit not achieved due to sales decline－- Impairment, contract losses, etc. related tosoftware in progress- Reversal of deferred tax assets－- Impairment, contract losses, etc. related tosoftware in progress- Reversal of deferred tax assets－

200(1,485)(2,500)(1,485)(2,700)

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05. FY2024 Revised Earnings Forecasts

FY2024 Revised Earnings Forecasts✓ We are taking very seriously the significant downward revision of our earnings forecasts following the previous fiscal year,
which occurred half a year after announcing our medium-term management plan on September 14, 2023. The entire company
will work together on the following measures to return to a growth path for this fiscal year and the next fiscal year onwards

Measures to return to a growth path for the current fiscal year and the next fiscal year onwards

Rebuilding mail-order business Improving investment efficiency of
promotional expenses
 Further improvement of CRM measures
 Measures to improve customer satisfaction

Brand management

 Plans to launch new products for
fall/winter 2024 and spring/summer 2025

Improving cost structure Review of fixed costs (organization,
outsourcing, systems)
 Control of costs and variable costs

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06 ｜Appendix

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06. Appendix

Company Profile
Name

Premier Anti-Aging Co., Ltd.

Established

December 2009

Head office

Toranomon Hills Station Tower 34F, 2-6-1 Toranomon, Minato-ku, Tokyo

Board
members

Kiyoshi Matsuura, President
Yoichiro Ito, Director and Managing Executive Officer, CFO
Takuyuki Fukumoto, Independent Outside Director
Sakiko Sakai, Independent Outside Director
Motoyasu Ishihara, Independent Audit and Supervisory Board Member
Akira Ide, Independent Audit and Supervisory Board Member
Yosuke Kondo, Independent Audit and Supervisory Board Member
Takahiro Toya, Executive Officer
Keigo Uemura, Executive Officer
Kiyoshi Iwakawa, Executive Officer
Yuka Uehara, Executive Officer

Consolidated
number of
employees

235 (as of January 31, 2023)

Line ofbusiness

Planning, development, import/export, mail-order/EC, wholesale
and retail business of cosmetics, health food products and recovery wearGroupcompanies

Premier Anti-Aging (Shanghai) Co., Ltd.
Venex Co., Ltd.

Copyright©2024 Premier Anti-Aging Co.,Ltd.

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06. Appendix

Corporate Identity✓ In formulating our medium-term management plan, we redefine our slogan, purpose, and promise

SloganPurpose

Corporate Logo

PromiseCopyright©2024 Premier Anti-Aging Co.,Ltd.

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06. Appendix

Corporate History

2009

●

- December:

Established Premier Anti-Aging Co., Ltd. in Toranomon, Minato-ku, Tokyo

2010

●

- February:

Started sales of cosmetic products with the launch of the DUO brand and began selling The Cleansing Balm through mail-order/EC
service

2012
2019

●

- July:Relocated the head office to Roppongi Hills Keyakizaka Terrace●- April:

Launched the CANADEL brand, an aging care brand for adults- October：

Cumulative sales of the DUO “The Cleansing Balm” series exceeded 10 million units- March：Relocated the head office to Toranomon Hills Mori Tower

2020

2021
2022
2023

●

- September ：Launched “sitrana,” a new brand for sensitive skin

- October：

Listed on the Tokyo Stock Exchange Mothers market- December：

Established Premier Wellness Science Co., Ltd.

●- February：

Established Premier Anti-Aging (Shanghai) Co., Ltd.

●

- March：Launched the “clayence” hair care brand- April：

Launched “DUO MEN,” a men’s skin care brand- August：

Cumulative sales of the DUO “The Cleansing Balm” series exceeded 40 million units- January：

Launched the “SINTO” inner care brand- January：

Venex Co., Ltd. became a consolidated subsidiary- February：

Launched the “X” inner care brand- August：

Launched vitamin skin care brand “C+mania” brand- November：

Merger with Premier Wellness Science Co., Ltd.

- November：

Relocated the head office to Toranomon Hills Station Tower●

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06. Appendix

Key Brands and Sales Composition Ratio✓ Skin care brands “DUO” and “CANADEL” and hair care brand “clayence” drove sales

Skin care✓✓✓

Main brand since ourfounding. Has driven sales
for our company as apioneer in the cleansing
Salesbalm market.
composition
Launched February 2010.
ratio*2
Offering 30 SKUs*1

63％

Hair care✓✓✓

Being nurtured as thesecond key brand after
DUO.
Addresses needs ofcontemporary womenby saving time.
Launched April 2019.
Offering 7 SKUs*1

✓
✓
Sales
composition
ratio*2

19％✓✓

Applying brand nurturing know-how
gained through DUO and CANADEL.
Home hair care brand thatSales
focuses on young
composition
generation with graying
ratio*2
hair.
Launched March 2022.
％
Offering 12 SKUs*1

9*1: SKU refers to the number of regular products as of January 31, 2024, excluding limited editions and different sizes *2: Calculated based on FY2024 2Q net sales.

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06. Appendix

Net sales by channel✓ Our mainstay mail order/EC sales, which we have been engaged in since our founding, account for approximately
65% of sales in 2Q of FY2024✓ Wholesale sales, which are responsible for sales to retail stores such as variety shops, account for approximately
18% of sales. Number of delivery stores are approximately 18,000 stores(Millions of yen)

Mail order/EC

12,000Wholesale
Others (including overseas subsidiary)

10,000

8,000

35%
25%
27%

6,000

18%

33%

16%
28%
26%

32%

17%

21%
18%

4,000

17%

16%

22%
71%

21%

2,000

13%

13%

85%

85%

1Q

2Q

25%

23%

82%

76%

4Q

1Q

81%

75%

2Q

3Q

76%

67%

70%

62%

78%

18%

78%
68%

64%

20%

68%

77%
65%

67%

67%

65%

3Q

4Q

1Q

2Q

76%

0
3Q

FY2019FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY20224Q

1Q

2Q

FY2023

FY2024
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06. Appendix

Total Number of Mail-order/EC Customers✓ The number of members supporting the subscription sales model has steadily increased, with the total
number of members exceeding 3.8 million(People)4,500,000
4,000,000

3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

2Q

FY2024
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06. Appendix

Number of cross-selling customers✓ Cross-selling rate remained steady due to aggressive CX promotion

Number of customers who subscribe to two or more products and the relevant ratio
Number of customers who subscribe to two or more products
Ratio of customers who subscribe to two or more products

14.3%

9.7%

100,000
people

1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q
FY2023

4Q

1Q

2Q
FY2024

Note: The number of customers who subscribe to two or more products refers to customers who are purchasing two or more product categories (e.g., balms and serums) on a regular basis.

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06. Appendix

Situation by Brand: DUO✓ The core brand since inauguration, DUO continues to drive sales as the pioneer in the cleansing balm
market

DUO is an aging care brand with the concept of “nourishing the skinfrom its foundation,” created under the policy of developing highly
effective products by combining natural ingredients that are kind to
the skin, body and nature with advanced science based ondermatology.

We currently have 30 SKUs* centering on cleansing balm.

Major cosmetics awards granted in 2023

MAQUIAupPLUS July issue
September issue Everyone's Cosmetics recommended byBest Cosmetics 2023 first half beauty connoisseur STAFF &Just dropping it is not enough!
discerning buyers
Cleansing category
Skin care category cleansing
First place
First place+20 more awards*The SKU figure refers to the number of regular products as of January 31, 2024, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: CANADEL✓ Being fostered as the second brand following DUO, CANADEL focuses on the busy modern women’s
needs for spending less time on skin care
Based on the concept of “continuously pursuing beauty, being true
to oneself, and enjoying life,” CANADEL is a highly advanced aging
care brand launched in April 2019 to address the changing skincare needs of mature consumers. Four types of all-in-one creams
and eye cream are currently available, taking in mind the lifestyles
of modern women proactively living busy daily lives.
We currently have 7 SKUs* centering on all-in-one cosmetics.

Major cosmetics awards granted in 2023

ESSE July issue

LEE August issue

Beauty Trend Award 2023
Gel/Oil Department

LEE Best Cosmetics 2023 First
Half
Positive Aging Award+4 more awards*The SKU figure refers to the number of regular products as of January 31, 2024, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: sitrana✓ A cosmetics brand for sensitive skin with cica substance* in all products

Featuring a unique anti-pollution capability, the sitrana
products protect the skin from dryness that causes skinirritation and such external stimuli as air pollution anddirt/grime. The cica substances* under our original blending
help fix the damaged skin and facilitate users to attain theirideal skin.
*Cica substances refers to the substance extracted from a plant called Centella asiatica.

Major cosmetics awards granted in 2022

MAQUIA September Issue

BAILA August issue

Everyone's Best Cosmetics
Maquia Influencers
BEST COSMETICSBest Cosmetics Grand Prize
for Working 30s
in the first half of 2022
Skin Care Category Award+4 more awards
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06. Appendix

Situation by Brand: clayence✓ A home hair care brand that focuses on young generation with graying hair, clayence was developed byapplying the brand nurturing know-how gained through DUO and CANADEL

A hair care brand inspired by a clay spa, clayence wascreated by combining the power of clay and cutting-edge
science to provide hair and scalp treatment while coloringgray hair. With calming aroma on top of carefully selectedclay and beauty substances, the product transforms tedioushair care into luxurious time at the spa.
We currently have 12 SKUs*.

Major cosmetics awards granted in 2023

MAQUIA January issue
VOCE March issue
Best cosmetics
Bath beauty is the bestin the second half of 2023
in time performance!
Shampoo & Conditioner Category
VOCE Bath Best cosmetics
First place
Shampoo & Treatment Category
First place+21 more award*The SKU figure refers to the number of regular products as of January 31, 2024, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: DUO MEN✓ With DUO men, we newly entered the fast-growing men’s cosmetics market by taking advantage of the highawareness of DUO brandWhile staying true to DUO’s brand concept of “Beauty is reborn
from skin care,” we took a close look at skin problems anddamage specific for men from the viewpoint of ecological andbiological science. DUO MEN offers secure and effective skincare requiring only a few easy steps, allowing all men living
busy lives to continue skin care in an enjoyable way.
We currently have 5 SKUs*.

Major cosmetics awards granted in 2023

MEN’S NON-NO
December issue

MEN’S NON-NO
December issue

Men's Non-No Beauty Award 2023 Men’s Non-No Beauty Award 2023
All-in-one Category
Face Wash Category
2nd place
2nd place+5 more award*The SKU figure refers to the number of regular products as of January 31, 2024, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: SINTO/X✓ Developing two inner care brands based on the development philosophy of “response with results”

Based on the idea that bodily sensations are the essence of supplements, we

Aiming to support the creation of an ideal body, it was born under the lead of aadopted the same DDS technology as in the medical field. Thoroughly sticking

food health instructor certified by the Japan Health and Nutrition Foodto the "experience" of the ingredients, we aim to renew the relationship

Association. We propose optimal supplements (functional foods) that match thebetween the body and the ingredients from the area of "penetration". It is a

two styles of “those who want to incorporate exercise” and “those who want tohealth care supplement for adults who enjoy aging that pursues a highimprove their eating habits” to support body fat reduction.

experience with a high amount of compounding (high compounding) and highabsorption and high penetration type (liposomes).
We currently have 2 SKUs*.

We currently have 2 SKUs*.

Major cosmetics awards
granted in 2023

Biteki.com
November 22nd issue

LEE Jan/Feb issue
LEE Best Cosmetics Award
2nd half of 2023
Beauty Sage’s
Beloved Cosmetics Award
Inner care category

Biteki HEN 2023
Best cosmetics of the year
Biteki HEN Annual Sage
Inner care ranking
First place +15 more awards*The SKU figure refers to the number of regular products as of January 31, 2024, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: C+mania✓ A high-concentration vitamin skin care brand for “consumers with high beauty information literacy” whopursue reliable effects
An “aggressive” vitamin skin care brand that focuses on highpurity, high penetration, and high concentration, with carefully
selected vitamin C from over 70 types and add α that enhances C.
Based on the concept of "enjoying vitamin C for maniacs", we aim
to propose skin care products with high immediate effect in orderto maximize the power of vitamin C.
We currently have 3 SKUs*.

Major cosmetics awards granted in 2023

an・an No. 2365

LEE January/February issue2023 Autumn Anan Mote
Close to your skin and feelings
Cosmetics AwardLEE Best Cosmetics Award 2023 Second HalfSkin care category
Cleansing/Facial Wash Award
The power of VC that everyone loves+13 more award
An award you can feel*The SKU figure refers to the number of regular products as of January 31, 2024, excluding limited items and different sizes.

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06. Appendix

Situation by Brand : Reinca✓ A skin care brand that uses a unique stem cell extract as a core ingredient created through joint researchwith the University of Tokyo

Based on the brand concept of “Facing the sourceof skin and sensibility with the power of SKIN &SENSE science,” we advocate skin cell care bornfrom advanced skin research and care for the fivesenses that pursues the comfort of physicalsensations.
We have developed a brand based on our original
dental pulp stem cell culture supernatant "ENGY
Stem S", which was successfully commercialized
through joint research with the University of Tokyo.
We currently have 5 SKUs*.

*The SKU figure refers to the number of regular products as of January 31, 2024, excluding limited items and different sizes.

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06. Appendix

Situation by Brand : Ko
✓ A brand with CBD (cannabidiol) as a key ingredient, which has a wide range of usefulness in beauty andhealthFocusing on the human endocannabinoid system(ECS) and circadian rhythm. The key ingredient CBD(cannabidiol) supports daily rhythms and helps
maintain a healthy mind and body. To ensure thesafety and transparency of CBD raw materials, wehave introduced a traceability system that allows
inspection, identification, and tracking through a
combination of lot number and serial number
identifiers.
We currently have 3 SKUs*.

*The SKU figure refers to the number of regular products as of January 31, 2024, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: VENEX✓ As a pioneer in the recovery field, Venex has developed products using fabrics made with its uniquepatented technology

Based on the concept of "maximizing the self-healing

power that humans have," we propose clothing forrecovery. With our proprietary special fiber "PHT
(Platinum Harmonized Technology)" and a noncompression design that does not constrict the body, it
supports high-quality recovery just by wearing it.

We currently have 85 SKUs*.

*The SKU figure refers to the number of regular products as of January 31, 2024, excluding limited items and different sizes.

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06. Appendix

Market Size of the Domestic Cosmetics Market✓ The domestic cleansing market, which includes balms, totaled 137.6 billion yen in 2022
Cosmetics

Supplements
H/B foods market(functional foods)
1,065.1 billion yen*

MakeupSkin care
Face wash

Cleansing

PowderBalm

Foam

Makeup

Solid soap

Cosmetics market
2,931.0 billion yen(of which the
men’s market is159.3 billion yen)
Skin care market
1,307.7 billion yen

Toner
Moisturizer

Cleansing market
137.6 billion yen

Hair care
Shampoo

Face wash market
126.0 billion yen

All-in-one

Conditionaer
Scalp care
Hair care/hair makeup
market 662.0
billion yen

Color treatment

Moisturizing
Whitening
UV whitenoning
Emulsion

BoosterWhitening
Moisturizing

All-in-one market
135.6 billion yen

Essence

Note: Gray circles indicate the markets, and red boxes represents our products.
Source: "Cosmetics Marketing Handbook 2023 No. 1", "Cosmetics Marketing Handbook 2023 No. 3", "H/B Foods Marketing Handbook 2023 <Overview>"
by Fuji Keizai*H/B foods markets are estimates for 2022

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06. Appendix

Domestic Market Size for Cosmetics and Skin Care
✓ Domestic cosmetics market, which continued to grow moderately through 2019, declined significantly with COVID-19✓ Moderate recovery continues in 2023 due to the reduction of COVID-19 to a Category 5 infectious disease
Trends in the domestic market sizefor cosmetics and skin care(100 million yen)

35,000COVID-19
OutbreakSkin care
Cosmetics market excluding skin care

30,00025,000Cosmetics market excluding skin care
CAGR 1.41%

20,000(2015-2023)

15,00010,000Skin care market
CAGR 0.88%

5,000(2015-2023)

0
2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

(Estimate)(Forecast)(Forecast)

Source: “Cosmetics Marketing Handbook 2023 No. 3” by Fuji Keizai
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06. Appendix

Domestic Market Size for Cleansing✓ Domestic cleansing market plummeted due to disappearance of inbound demand caused by COVID-19✓ The market expanded again in 2021 as the positioning of cleansing products changes from makeup removerto skin care productsTrends in the domestic market size for cleansing

COVID-19
Outbreak

100 million yen 1,600

1,400

1,200
1,000

800

120.7 billion yen →147.5 billion yen
22％UP（2014-2019）

600

128.2 billion yen →140.2 billion yen
9%UP（2020-2023）

400
200
0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

(Estimate)(Forecast)(Forecast)

Source: “Cosmetics Marketing Handbook 2023 No. 1” by Fuji Keizai

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06. Appendix

Domestic Market Size for All-in-one Cosmetics✓ A product that promotes the ability to complete skin care after washing face with just one item
✓ Market is expanding slowly
Trends in the domestic market size for all-in-one cosmetics(100 million yen)

1,400

1,380

1,360

1,340

131.2 billion yen →138.0 billion yen
5%UP（2020-2023）

1,320

1,300

1,280

1,260
2020

2021

Source: “Cosmetics Marketing Handbook 2023 No. 1” by Fuji Keizai

2022

2023
(Estimate)
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06. Appendix

Domestic Market Size for Hair Color and Female Scalp Care
✓ The hair color market remains strong from 2022 onwards, with the entry of highly convenient color
treatments for gray hair
✓ The female scalp care market has expanded rapidly since the COVID-19 outbreak due to increased time athome and heightened awareness of scalp care
Trends in the domestic market size for hair color

Trend in the domestic market size for female scalp care(100 million yen)(100 million yen)

700

2,000
1,800

600

1,600
500

1,400
1,200

400

1,000

300

800

148.2 billion yen →166.1billion yen
12％UP（2020-2023）

600
400

32.0 billion yen → 56.2 billion yen
76％UP（2020-2023）

200
100

200
0

0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

(Estimate)(Forecast)(Forecast)

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

(Estimate)(Forecast)(Forecast)
Source: “Cosmetics Marketing Handbook 2023 No. 2” by Fuji Keizai

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06. Appendix

Domestic Market Size for Functional Food and Recovery Wear
✓ The functional food market has been performing well due to increasing demand for health since the COVID-19
outbreak✓ The recovery market is expected to grow approximately 3.6 times from 2019, and the rest solution (clothing) is
expected to grow approximately 6.5 times
Trends in the domestic market size for functional foodDomestic market size for recovery wear

(100 million yen)

12,000Total recovery market

3.9 ⇒ 14.1trillion yen

10,000（2019）

8,000（2030）

6,000

Recovery market (clothing)
86.7 ⇒ 564.2 billion yen

4,000

1.0075 trillion yen→1.0882 trillion yen
8％UP（2020-2023）

2,000

0
2014

2015

2016

2017

2018

2019

2020

Source: “H/B Foods Marketing Handbook 2023 <Overview>" by Fuji Keizai

2021

2022

2023

(Estimate) (Forecast)＊Rest Week Promotion Secretariat: "In collaboration with the Kanagawa Prefecture Meibyou Industry ResearchGroup, we estimate the market size of the three elements of health, ``recovery,'' for the first time in Japan.
The recovery market in 2030 will be worth 14.1 trillion yen."

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06. Appendix

Brand Share for Cleansing (Balm type) and All-in-one Cosmetics✓ Established a competitive position with cleansing (balm type) by DUO and all-in-one by CANADEL
Cleansing (Balm type)
Premier AntiAging

All-in-one

70.5%

A

16.7%

A

4.7%

B

B

3.8%

C

5.3%

C

3.3%

D

5.2%

D

2.2%

E

4.5%

E

2.1%

Premier AntiAging

4.3%

F

1.7%

F

G

1.2%

G

2.3%

H

1.1%

H

2.3%

I

1.0%

I

2.2%

Source: “Cosmetics Marketing Handbook 2023 No. 1” Cleansing <Balm: Brand Share> 2022 by Fuji Keizai

7.6%

3.5%

Source: “Cosmetics Marketing Handbook 2023 No. 1” Moisture <All-in-one: Brand Share> 2022 by Fuji Keizai

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06. Appendix

Basic Sustainability Policy✓ In April 2023, we established the "Basic Sustainability Policy," which describes our group's basic approach tosustainability～Enabling unique pathways through life～
Untether time.
As humanity approaches the era of 100-year live spans,
we aim to create a world where every individual canpursue new challenges with confidence and curiosity,
free from preconceived notions of age and gender.
Working together with our stakeholders, we will thinkoutside the square to provide unique value that canchange the world, addressing social issues for a brighter,sustainable future.
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06. Appendix

Materiality and Goals✓ Identified five materiality as themes that should be prioritized to improve corporate value and set initiatives andtargets

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Disclaimers and Notes on Forecasts and Projections✓ The document and information provided in our results briefing include forward-looking statements,
which are based on our current expectations, forecasts and assumptions involving risks. As such, there
are uncertainties that may cause actual results to practically differ from what are described in suchstatements.
✓ These risks and uncertainties include general industry and market conditions as well as generaldomestic and international economic conditions such as interest rate and currency exchange rate
fluctuations.
✓ The Company considers cosmetics market trends to be a major risk that may materially impact its
growth and execution of business plans. However, the Company endeavors to mitigate such risks andmaintain the competitive edge of its products by actively conducting promotions and understanding
customers’ potential needs to reflect on product planning. For other types of risks, please refer to the“Business Risks, etc.” as highlighted in our Securities Report.

Contact: Corporate Communication Division
E-mail ：ir@p-antiaging.co.jp

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