FY2023
March 14, 2023

2Q

Premier Anti-Aging Co., Ltd.
TSE Growth 4934

FY2023 2Q Results Briefing Material

INDEX

01

Executive Summary

02

FY2023 2Q Results

03

Initiatives for 3Q and Beyond

04

Appendix© 2023 Premier Anti-Aging, Co., Ltd.

2

01 Executive Summary© 2023 Premier Anti-Aging, Co., Ltd.

3

01. Executive Summary

Executive Summary
FY2023 2Q Results

 Net sales almost achieved forecast figures
 Investment in efficient advertising and advancement of company-wide cost structurereforms led to operating profit greater than forecast and turned to profitability
 Toward becoming an anti-aging company, we ① established a new inner care business andlaunched two brands: SINTO and X, and ② entered the recovery business by acquiring
Venex Co., Ltd. that develops recovery wear
Future Direction

 To achieve full-year forecast of 30.0 billion yen in net sales and 1.5 billion yen in operating
profit, aim for profitable growth by implementing balanced investment considering CPO
and LTV for the key brands of DUO, CANADEL, and clayence Improve LTV by continuing to build long-term relationships with existing customers
through CX
 Invest management resources into wholesale sales channels that monetizes faster thanmail order/EC sales channels, strengthen personnel structures
 Advance process to integrate Venex Co., Ltd. and accelerate early expressions ofsynergistic effects to promote new value provision to customers© 2023 Premier Anti-Aging, Co., Ltd.

4

02 FY2023 2Q Results© 2023 Premier Anti-Aging, Co., Ltd.

5

02. FY2023 2Q Results

Statement of Income（year-on-year）


Sales of CANADEL and clayence significantly increased, but not enough to cover the decreased sales of
DUO, leading to lower levels of overall net sales

 Gross profit fell due to the decline in net sales, but advertising investments focused on investment
efficiency and promotion of company-wide cost structure reforms led to securing operating profit of 100
million yen
 In comparison to the first half forecast (net sales: 14.5 billion yen, operating profit: 0 billion yen), almost
achieved the net sales forecast and exceeded the operating profit forecast to see a return to profitability(Millions of yen)

FY2022
1Q-2Q

FY2023
1Q-2Q

Increase/(decrease)

YoY change(%)

17,97014,258(3,711)(20.7％)

ＬMail order/EC

12,397

10,317(2,080)(16.8％)

ＬWholesale

4,923

3,102

(1,821)(37.0％)

648

839

190

29.4％

Operating profit

2,248

109

(2,139)(95.2%)

Operating profit margin
(%)

12.5%

0.8%

－

(11.7pts)

Ordinary profit

2,321

95

(2,226)(95.9％)

Profit (loss)
attributable to ownersof parent

1,360

(26)

(1,386)－

Net sales

ＬOthers© 2023 Premier Anti-Aging, Co., Ltd.

6

02. FY2023 2Q Results

Statement of Income (quarter-on-quarter) Net sales in the second quarter declined by 7% (QoQ) due to sluggish wholesale sales despite steady growth
in mail order/EC sales of DUO and CANADEL
 Secured operating profit of 350 million yen by focusing on advertising investment efficiency and promoting
company-wide cost control

FY20222Q

FY2022
3Q

FY20224Q

FY2023
1Q

FY2023
2Q

Changefromprevious
quarter (%)

8,104

7,926

8,015

7,391

6,867

(7.1％)

Ｌ Mail order/EC

6,267

5,470

6,281

5,055

5,261

4.1％

Ｌ Wholesale

1,492

2,192

1,266

1,929

1,172

(39.2％)

344

263

467

406

432

6.4％

6,575

6,162

5,967

5,747

5,421

(5.7％)

6,401

6,453

5,510

5,991

5,068

(15.4％)

Ｌ Advertising expenses

3,572

3,678

2,718

3,045

2,430

(20.2％)Ｌ Outsourcing

1,516

1,384

1,388

1,248

1,252

0.4％

Ｌ Payroll and allowances

244

302

304

325

293

(9.9％)

Ｌ R&D

114

115

122

127

102

(19.7％)

Ｌ Others

953

972

976

1,244

988

(20.5％)

173

(290)

456

(244)

353

－

2.1％

(3.7％)

5.7％(3.3％)

5.1％

189

(180)

430

(224)

320

－

39

(138)

202

(198)

172

－

(Millions of yen)

Net sales

Ｌ Others

Gross profit

SG&A Expenses

Operating profit (loss)

Operating profit margin (%)
Ordinary profit (loss)

Profit (loss) attributable toowners of parent

8.4pts© 2023 Premier Anti-Aging, Co., Ltd.

7

02. FY2023 2Q Results

Advertising Expenses
 Although the ratio of advertising expenses to sales increased from 36.3% to 38.4% year-on-year,
considering that we were unable to actively invest in advertising in the first quarter of the previous fiscal
year due to the impact of advertising regulation changes, advertising expenses are appropriately controlled Controlled CPO through strategic advertising investment focused on investment efficiency
 Moving into the second half, we will focus on profits by actively promoting advertising investment in brands
that maintain good CPO/LTV levels.
Breakdown of Advertising Expenses
Ad expenses/net sales (quarterly)1Q）41.2％➡2Q）35.4％）

Mail Order/EC CPO
and Number of New Customers
clayence
CANADELDUO
OthersCPO(Millions of yen)

6,523
Others
TVCM

5,475
Others
TVCM

New
clientNew
clientFY2022

FY2023

1Q-2Q

1Q-2Q

8

9 10 11 12
1Q
2Q

1

2

FY2022

3 4
3Q

5

6 7
4Q

8

9 10 11 12
1Q
2Q

1

FY2023© 2023 Premier Anti-Aging, Co., Ltd.

8

02. FY2023 2Q Results

Balance Sheet（comparison with end of the previous fiscal year）

 Consolidated the balance sheet of Venex Co., Ltd. from 2Q. Both non-current assets and non-current
liabilities increased
 Non-current assets increased due to goodwill from acquisition of Venex Co. Ltd. of 562 million yen(provisional figure) Non-current liabilities increased due to increase in long-term borrowings by 815 million yen(Millions of yen)

FY2022

FY2023
2Q

Increase/(decrease)

Percentagechange12,30013,726

1,425

11.6％

11,516

12,070

553

4.8％

783

1,656

872

111.4％

3,952

5,417

1,464

37.1％

3,220

3,786

565

17.6％

731

1,630

899

122.8％

Total net assets

8,348

8,309

(38)

(0.5％)

Total liabilities and net
assets12,30013,726

1,425

11.6％

Equity ratio (%)

67.9％

60.5％

－

(7.4pts)

Total assets
ＬCurrent assets
ＬNon-current assets

Total liabilities
ＬCurrent liabilities
ＬNon-current liabilities© 2023 Premier Anti-Aging, Co., Ltd.

9

02. FY2023 2Q Results

FY2023 Forecast（Repost）
 No change to full-year forecast for FY2023
 The business environment remains severe but we are aiming to achieve net sales of 30.0 billion yen
and operating profit of 1.5 billion yen(Millions of yen)

FY2022
Results

FY2023
Forecast

Increase/(decrease)

YoY change(%)

Net sales

33,911

30,000(3,911)(11.5％)

Operating profit

2,414

1,500

(914)

(37.9%)

Operating profit margin
(%)

7.1%

5.0%

－

(2.1pts)

Ordinary profit

2,572

1,520

(1,052)(40.9％)

Profit attributable toowners of parent

1,424

820

(604)

(42.4％)© 2023 Premier Anti-Aging, Co., Ltd.

10

03 Initiatives for 3Q and Beyond© 2023 Premier Anti-Aging, Co., Ltd.

11

03. Initiatives for 3Q and Beyond

Transformation Into an Anti-Aging Company

 To become an anti-aging company, we entered the inner care and recovery businesses and steadily
expanded our business domains
 Aim for a comprehensive anti-aging approach to a customer base of 3.7 million
 We will continue to observe capital discipline and consider new business investments
・DUO brand・CANADEL brand, others

１

Skin carebusiness・clayence brand2

Hair carebusiness
NEW

3

Inner carebusiness

Mail-order/EC
sales

Cleansingbalm

Anti-aging platform

Areas offuturebusinessdevelopment 2

4
Areas offuturebusinessdevelopment 1

・SINTO brand・X brandNEW

Recoverybusiness

・VENEX brand© 2023 Premier Anti-Aging, Co., Ltd.

12

03. Initiatives for 3Q and Beyond

Skin Care Business: DUO

 As a mature brand, we will continue to strengthen approaches to existing customers and aim to further
improve brand value
Shift in Quarterly Net Sales of DUO

2Ｑ Topics
 DUO business environment continued to be severe
and led to decreased sales

Mail order/EC sales

Millions of yen

Wholesale

Others

10,0009,000

 New TV commercial coincided with launch of “The
Cleansing Balm HOT”

8,000
7,000
6,000

3Q and Beyond

5,000 Strengthen LTV-conscious ad investment andpromote approaches to customer segments that are
expected to have a higher level of LTV
 Enhance sales floor activities to elevate DUO’s
product appeal in stores

4,000
3,000
2,000
1,000
0

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY20224Q

1Q

2Q

FY2023

 Promotions through both mail order/EC and in-store(wholesale sales) channels, timed with
new TV commercial
 Launch MATCHA (green tea) balm
targeting inbound tourists(scheduled release date: May 19)

DUO the cleansing balm MATCHA© 2023 Premier Anti-Aging, Co., Ltd.

13

03. Initiatives for 3Q and Beyond

Skin Care Business: CANADEL Highly appealing products support steady sales growth Continue strengthening outreach to loyal customers and promote cross-selling and up-selling
2Ｑ Topics

Shift in Quarterly Net Sales of CANADEL

 Steady progress in net sales in line with revised

Mail order/EC

Wholesale

Others(Millions of yen)

2,000

forecast
 Improved brand awareness after CM release

1,800 Continue outreach to loyal customers by offering

1,600

high-end products with high added value

1,400

3Q and Beyond

1,200 Redevelop existing products as quasi-drug products

1,000with an aim to further strengthen product appeal

800
600
400
200
0

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY20224Q

1Q

2Q

FY2023

CANADEL Premier Lift
Quasi-drug product Therapeutic Premier Lift
© 2023 Premier Anti-Aging, Co., Ltd.

14

03. Initiatives for 3Q and Beyond

Hair Care Business: clayence Maintain direct communication with customers - one of our strengths – to offer comprehensive
solutions to customers’ diverse hair issues
2Ｑ Topics Sales growing in both mail order/EC and wholesale sales channels
 New customer acquisition subdued because of efficiency-focused advertising investment
 Implemented measures reflecting customer opinions – one of our greatest strengths. Upward trend in
retention rate achieved by strengthening communication on products, such as by sharing productfeatures and proper usage instructions, and introducing products that counteract usability issues
often experienced with color treatments
3Q and Beyond Continue to pay attention to shifts in retention rateand invest in advertising focused on the CPO/LTV
relationship Introduce new products offering comprehensive
solutions for diverse hair issues
 Strengthen wholesale structures, seeking to increase
number of retail outlets

Pamphlet included in packaging shares proper usage instructions© 2023 Premier Anti-Aging, Co., Ltd.

15

03. Initiatives for 3Q and Beyond

Inner Care Business and Recovery Business Test marketing has started for the newly entered inner care business. Brand development will be
implemented while we carefully assess the investment effect In collaboration with Venex, which has joined the Premier Anti-Aging Group, we will take action toward
the full-scale development of the recovery business3Q and Beyond

 Started test marketing for the newly enteredinner care brand Emphasize investment efficiency and determine
investment timing Take action for early realization of integration
effects
 Prepare for joint manufacturing and sales of
new products
 Continuing educational activities for recovery
products© 2023 Premier Anti-Aging, Co., Ltd.

16

03. Initiatives for 3Q and Beyond

CX Promotion: Customer Experience Stages and KPIs (updated) Recognizing different issues at each stage and extracting priority issues
 Implementing various measures focused on strengthening the customer development phase Strengthening cross-selling across businesses by expanding business areas
Customer Experience Stages and Key KPIs
New acquisition phase

StagesCognition

Customer development phase

Comparison/
examination

Final goal

Purchase

Experience

Continue

Loyalty

Conversion rate

Retention rate/
Call center
response rate

Fan degree/
Engagement

KPIs

Brand awareness/
Exposure

Number of newacquisitions/
CPO/
Number of potential
customers
reactivated

Active members/
Cross-selling rate

Strengthen cross-selling across businesses
Ongoing business
Skin care business

Hair care businessInner care business

Recovery business© 2023 Premier Anti-Aging, Co., Ltd.

17

03. Initiatives for 3Q and Beyond

Number of Cross-Selling Customers

 The number of customers who subscribe to two or more products decreased due to the subdued newcustomers of clayence, which has a high cross-selling rate
 Cross-selling rates of DUO and CANADEL are on the rise due to continuous CX promotion
Number of Customers Who Subscribe to Two or More Products and the Relevant Ratio

13.8%

Number of customers who subscribe to two or more products
Ratio of customers who subscribe to two or more products

9.7%

100,000
people

1Q

2Q

3Q
FY20204Q

1Q

2Q
FY2021

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.

3Q

4Q

1Q

2Q

3Q
FY20224Q

1Q

2Q
FY2023© 2023 Premier Anti-Aging, Co., Ltd.

18

03. Initiatives for 3Q and Beyond

Sustainability Initiatives
 Continue to implement sustainability initiatives

Introduction of eco-friendly
packaging
From November 2022, we started delivering
packages without boxes to subscription sales
customers beginning from the second delivery

Conventional package

Sponsoring the Cosme Bank Project
Participated in the project as a cooperatingcompany. We provided products to women who
cannot afford cosmetics due to financial andother reasonsEco-friendly package

Sponsoring Japan's largest
International Women's Day event
Supports the philosophy of the “HAPPYWOMAN®” project, which promotes theempowerment of women and the realization of agender equal society, and sponsors the events

Certified as 2023 Certified Health &Productivity Management Outstanding
Organization

We are working on health management based on
the health management declaration and have beencertified as a “2023 Health and Productivity
Management Outstanding Organization” selectedby the Ministry of Economy, Trade and Industry
and Nippon Kenko Kaigi.

© 2023 Premier Anti-Aging, Co., Ltd.

19

04 Appendix© 2023 Premier Anti-Aging, Co., Ltd.

20

04. Appendix

Company Profile
Name

Premier Anti-Aging Co., Ltd.

Established

December 2009

Head office

Toranomon Hills Mori Tower 8F, 1-23-1 Toranomon, Minato-ku, Tokyo

Board
members

Kiyoshi Matsuura, President
Koji Kawabata, Director and Managing Executive Officer
Yoichiro Ito, Director and Managing Executive Officer, CFO
Takahiro Toya, Director and Executive Officer
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
Keigo Uemura, Executive Officer
Kiyoshi Iwakawa, Executive Officer
Yuka Uehara, Executive Officer

Employees

245 (as of January 31, 2023)

Line ofbusiness

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

Group
companies

Premier Wellness Science Co., Ltd.
Premier Anti-Aging (Shanghai) Co., Ltd.
Venex Co., Ltd.
© 2023 Premier Anti-Aging, Co., Ltd.

21

04. Appendix

Business Philosophy

Time is fleeting, and it passes equally,
whether you are young or old.
Hours become days, days become the future.

Unleashing TimeWe want to be an integral part of people’s time.
By offering an exceptionally “unique value,”
we want to enrich people’s lives and change the future.
Let us unleash your future.

© 2023 Premier Anti-Aging, Co., Ltd.

22

04. 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 brandand began selling The Cleansing Balm through Mail-order/EC service

2012・－ July: Relocated the head office to Roppongi Hills Keyakizaka Terrace

2018・－ September: Started airing TV commercials (featuring KinKi Kids, a popular male duo), the first such ad for DUO
2019・－ 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

2020・－ March: Relocated the head office to Toranomon Hills Mori Tower－ September: Launched “sitrana,” a new brand for sensitive skin

－ September: Started airing the first round of TV commercials for CANADEL (featuring actress Ryoko Yonekura)－ October: Launched “immuno,” a new organic cosmetic brand－ October: Listed on the Tokyo Stock Exchange Mothers market－ December: Established Premier Wellness Science Co., Ltd.

2021・

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

2022・－ 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－October：Started airing the first round TV commercials for clayence (featuring actress Rei Dan)

2023・

－ January: Launched the “SINTO” inner care brand－ January: Venex Co., Ltd. became a consolidated subsidiary－ February：Launched the “X” inner care brand© 2023 Premier Anti-Aging, Co., Ltd.

23

04. Appendix

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

SKIN CARESKIN CARE Main brand since our founding.
Has driven sales for ourcompany as a pioneer in thecleansing balm market.

 Launched February 2010.

Sales composition
ratio*266％

 Offering 35 SKUs*1

 Being nurtured as the second
key brand after DUO.
Addresses needs ofcontemporary womenby saving time.
 Launched April 2019.
 Offering 11 SKUs*1

Sales composition
ratio*2

21％

HAIR CARE

 Applying brand nurturing know-how gained throughDUO and CANADEL.
 Home hair care brand that
Sales composition
focuses on young generation
ratio*2with graying hair.
 Launched March 2022.
 Offering 6 SKUs*1

10％*1: SKU refers to the number of regular products as of January 31, 2023, excluding limited editions and different sizes *2: Calculated based on FY2023 2Q net sales.

© 2023 Premier Anti-Aging, Co., Ltd.

24

04. Appendix

Net Sales by Channel
 Although mail-order sales of CANADEL and clayence were solid, sales of DUO continued to struggle dueto the outflow to oil formulations
 CANADEL and clayence were also solid in wholesale sales, but DUO struggled as the outflow to oil
formulations and low-priced balms continued(Millions of yen)
12,000Trends in net sales by channel
Mail-order/EC
Wholesale

10,000

Others (including overseas subsidiary)

8,000
25%

6,000

18%

33%

16%
28%
26%

32%

17%

21%
18%

4,000

17%

23%

22%

0

13%

13%

85%

85%

1Q

2Q

82%

76%

4Q

1Q

81%

75%

2Q

3Q

76%

67%

70%
64%

62%

78%

78%
68%

68%

77%

1Q

2Q

76%

3Q

FY2019FY20204Q

1Q

2Q

FY2021

3Q

4Q

1Q

2Q

3Q

FY20224Q

Mail-order/EC

71%

21%

2,000

Wholesale

27%

35%

FY2023© 2023 Premier Anti-Aging, Co., Ltd.

25

04. Appendix

Total Number of Mail-order/EC Customers
 The total number of members exceeded about 3.7 million(People)4,000,000

Total number of Mail-order/EC customers

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

1Q

2Q

FY2020

3Q

4Q

1Q

2Q

FY2021

3Q

4Q

1Q

2Q

3Q
FY20224Q

1Q

2Q
FY2023© 2023 Premier Anti-Aging, Co., Ltd.

26

04. 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 skin from its foundation,”created under the policy of developing highly
effective products by combining naturalingredients that are kind to the skin, body andnature with advanced science based ondermatology.

We currently have 35 SKUs* centering on
cleansing balm.

Major cosmetics awards granted in the first half of 2022

MAQUIA September
issue
Everyone's Best
Cosmetics Skin Care
Category
Cleansing category
1st place

WWD JAPAN
Published on June 21
Best Cosmetics in 1H of 2022
Variety Drugstore Edition
Cleansing and Face Cleansing
Category
1st place+20 more awards*The SKU figure refers to the number of regular products as of January 31, 2023, excluding limited items and different sizes.
© 2023 Premier Anti-Aging, Co., Ltd.

27

04. 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 carebrand launched in April 2019 to address thechanging skin care needs of mature consumers.
Four types of all-in-one creams and eye cream
are currently available, taking in mind thelifestyles of modern women proactively living
busy daily lives. We currently have 11 SKUs*
centering on all-in-one cosmetics.

Major cosmetics awards granted in the first half of 2022

LIPS June 1 issue
LIPS Best Cosmetics
First Half of 2022
New Category Award
All-in-One Category
2nd place

LEE August issue
Immediate solutions toyour skin problems! Best
Cosmetics 2022 Summer
Fluctuating & Acne-prone
Skin Care
Grand Prize+5 more awards*The SKU figure refers to the number of regular products as of January 31, 2023, excluding limited items and different sizes.
© 2023 Premier Anti-Aging, Co., Ltd.

28

04. Appendix

Situation by Brand: sitrana

 A cosmetics brand for sensitive skin with cica substance*1 in all products, sitrana targets the Chinese
marketFeaturing a unique anti-pollution capability,

the sitrana products protect the skin fromdryness that causes skin irritation and suchexternal stimuli as air pollution anddirt/grime. The cica substances*1 under our
original blending help fix the damaged skinand facilitate users to attain their ideal skin.
We currently have 14 SKUs*2.

Major cosmetics awards granted in the first half of 2022

MAQUIA September Issue
Everyone's Best Cosmetics
Maquia Influencers
BEST COSMETICSLEE August issue
Immediate solutions toyour skin problems!
Best Cosmetics 2022
SummerSkincare for pores category+3 more awards*1: Cica refers to the substance extracted from a plant called Centella asiatica. *2: The SKU figure refers to the number of regular products as of January 31, 2023, excluding limited items and different sizes.
© 2023 Premier Anti-Aging, Co., Ltd.

29

04. Appendix

Situation by Brand: immuno

 A functional organic cosmetics brand, immuno takes SDGs into consideration and promotes sustainable
development

While reflecting the comfort, aroma and ecoconsciousness of organic products, theimmuno brand was developed to achieve“desired results for skin” from a scientificperspective, not just for “feeling great.” It
offers “functional aging care” that allows
users to sense the difference after use rather
than feeling somehow good. We currently
have 9 SKUs*.
Major cosmetics awards granted in the first half of 2022

LEE August issue
Immediate solutions toyour skin problems!
Best Cosmetics 2022 Summer
Beauty Wise Men’s
Best-Loved Cosmetics&ROSY August issue
The 20 beauty experts
The best cosmetics thatmeet the aesthetic sense
The best cosmeticsof the 20 beauty experts!
Oil category 1st place+3 more awards*The SKU figure refers to the number of regular products as of January 31, 2023, excluding limited items and different sizes.
© 2023 Premier Anti-Aging, Co., Ltd.

30

04. Appendix

Situation by Brand: clayence A home hair care brand that focuses on young generation with graying hair, clayence was developed by applying thebrand nurturing know-how gained through DUO and CANADEL•
A hair care brand inspired by a clay spa,clayence was created by combining thepower of clay and cutting-edge science toprovide hair and scalp treatment whilecoloring gray hair. With calming aroma on
top of carefully selected clay and beauty

substances, the product transforms tedioushair care into luxurious time at the spa. We
currently have 6 SKUs*.

Major cosmetics awards granted in the first half of 2022

LEE August issue
Immediate solutions toyour skin problems!
Best Cosmetics 2022 Summer
Beauty Wise Men's Best-Loved
Cosmetics Department

MAQUIA August Issue
MAQUIA 2022 First Half
Best Cosmetics
Announcement Shampoo& Conditioner category
3rd place+4 more awards*The SKU figure refers to the number of regular products as of January 31, 2023, excluding limited items and different sizes.
© 2023 Premier Anti-Aging, Co., Ltd.

31

04. Appendix

Situation by Brand: DUO men

 With DUO men, we newly entered the fast-growing men’s cosmetics market by taking advantage of thehigh awareness 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 and damage specific for men
from the viewpoint of ecological and biologicalscience. 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 4 SKUs*.

Major cosmetics awards granted in the first half of 2022

FINEBOYS August issue
The 15th FINEBOYS
Men's Beauty Awards!
Facial Cleanser Category
2nd place

MEN'S CLUB August issue
MEN'S CLUB BEAUTY
the best of the best 2022
Facial Cleansing Category
3rd place+1 more awards*The SKU figure refers to the number of regular products as of January 31, 2023, excluding limited items and different sizes.
© 2023 Premier Anti-Aging, Co., Ltd.

32

04. Appendix

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

Aiming to support the creation of an ideal body, it was born under
the lead of a food health instructor certified by the Japan Healthand Nutrition Food Association. We propose optimal supplements(functional foods) that match the two styles of “those who want toincorporate exercise” and “those who want to improve their eating
habits” to support body fat reduction.
We currently have 2 SKUs*.

Based on the idea that bodily sensations are the essence of
supplements, we adopted the same DDS technology as in the
medical field. Thoroughly sticking to the "experience" of theingredients, we aim to renew the relationship between the bodyand the ingredients from the area of "penetration". It is a healthcare supplement for adults who enjoy aging that pursues a highexperience with a high amount of compounding (highcompounding) and high absorption and high penetration type(liposomes).
We currently have 2 SKUs*.

*The SKU figure refers to the number of regular products as of January 31, 2023,
excluding limited items and different sizes© 2023 Premier Anti-Aging, Co., Ltd.

33

04. Appendix

Venex’s 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," wepropose clothing for recovery.
With our proprietary special fiber"PHT (Platinum HarmonizedTechnology)" and a noncompression design that does
not constrict the body, it
supports high-quality recovery
just by wearing it.
We currently have 76 SKUs*.

*The SKU figure refers to the number of regular products as of January 31, 2023, excluding limited items, different sizes and colors.
© 2023 Premier Anti-Aging, Co., Ltd.

34

04. Appendix

Premier Wellness Science’s Brand : Ko

 A brand with CBD (cannabidiol) as a key ingredient, which has a wide range of usefulness in beauty andhealthFocusing on the humanendocannabinoid system (ECS) andcircadian rhythm. The key ingredient
CBD (cannabidiol) supports daily

rhythms and helps maintain a healthy
mind and body. To ensure the safety
and transparency of CBD raw

materials, we have introduced a
traceability system that allows
inspection, identification, andtracking 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, 2023, excluding limited items and different sizes.
© 2023 Premier Anti-Aging, Co., Ltd.

35

04. Appendix

Premier Wellness Science’s 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 source of skin andsensibility with the power of SKIN &SENCE science,” we advocate skincell care born from advanced skinresearch and care for the five senses
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 successfullycommercialized 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, 2023, excluding limited items and different sizes.
© 2023 Premier Anti-Aging, Co., Ltd.

36

04. Appendix

Market Size of the Domestic Cosmetics Market
The domestic cleansing market, which includes balms, totaled 141.3 billion yen in 2021

H/B foods
market(functional
foods) 1,041.0
billion yen

Supplements

Cosmetics
MakeupSkin Care
Face wash
Powder

MakeupCleansing
Balm

Foam

Solid soap

Cleansing market
141.3 billion yen

Hair care

Moisturizing

Scalp care

Whitening

Color treatment
Hair care/hair makeup
market 639.7
billion yen

Face wash market
123.7 billion yen

All-in-one

Conditioner

UV whitening
Emulsion

Skin care market
1,293.0 billion yen

Toner
Moisturizer

Shampoo

Cosmetics market
2,839.6 billion yen(of which the
men’s market is154.9 billion yen)

BoosterWhitening

All-in-one market
135.0 billion yen

Moisturizing
Essence

Note: Gray circles indicate the markets, and red boxes represents our products. Source: “Cosmetics Marketing Handbook 2022 No. 1, No. 3” and “H/B Foods Marketing Handbook 2023 No.1” by Fuji Keizai© 2023 Premier Anti-Aging, Co., Ltd.

37

04. 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
remover to skin care products(Billions of yen)

180

Trends in the domestic market size for cleansing
COVID-19
outbreak

160

140

120

100

80

￥120.7 billion→￥147.5 billion
Up 22％（2014-2019）60￥128.2 billion→ ¥141.3 billion
Up 10%（2020-2021）

40

20

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

(Estimate)2023(Forecast)

2024(Forecast)

Source: “Cosmetics Marketing Handbook 2022 No. 1” by Fuji Keizai© 2023 Premier Anti-Aging, Co., Ltd.

38

04. Appendix

Domestic Market Size for Cosmetics and Skin Care

 Domestic cosmetics market, which continued to grow moderately through 2019, declined significantlywith COVID-19
 Recovery trend in 2021 due to reassessment of the importance of skin care under masked lifestyles(Billions of yen)

Trends in the domestic market size for cosmetics and skin care
Skin care
Non skin care cosmetics

COVID-19
Outbreak

3,500

3,000

2,500

Cosmetics market
excluding skin care
CAGR: 1.08%

2,000(2013-2022)

1,500

1,000

Skin care market
CAGR: 1.50%

500

0(2013-2022)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

(Estimate)2023(Forecast)

Source: “Cosmetics Marketing Handbook 2022”No3 by Fuji Keizai© 2023 Premier Anti-Aging, Co., Ltd.

39

04. Appendix

Organizational Characteristics
 We have created an organization that focuses on core operations to achieve high productivity and mobility
１. Fabless manufacturing
We have built a nationwide network of
OEM manufacturers and select the
optimal OEM production system for eachproduct. By outsourcing production, we
can maintain a flexible production system
highly adaptable to environmental
changes.
２. Sales per employee
We focus on core operations such as
product development and marketing,while outsourcing logistics,
manufacturing, and most of the callcenter operations, etc. By doing so, theratio of non-current assets is kept low
and sales per employee is at a higher
level than our competitors.

© 2023 Premier Anti-Aging, Co., Ltd.

40

04. Appendix

Environmental Initiatives
 We are actively promoting eco-conscious initiatives

FSC® certified packaging materials areused for all brands that use paper
packaging
FSC® certification is a system in which
the FSC® label is attached to wood
products produced from forests
deemed to be well-managed or otherproducts using low-risk wood, allowing
them to be sold as certified products.

Starting with cleansing balm, we areconsidering introducing Green Nano to otherproducts. Stability study underway.
Green nano technology can
reduce CO2 emissions fromburning materials byapproximately 60% by adding
green nano substances to thematerials.

Received the semi grand prize of "2022GP
Environmental Grand Prize”
The GP mark certifies thatprinting materials, manufacturing
process and all activities
undertaken by a printing
company is eco-conscious.

Adoption of waterless printing contributes toreducing the number of hazardous
substances used and emitted
We use a technology called the"waterless lithography method"that does not discharge harmfulwaste liquids during printing, andactively adopt printed materials
printed with this method.

© 2023 Premier Anti-Aging, Co., Ltd.

41

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 practicallydiffer from what are described in such statements.
 These risks and uncertainties include general industry and market conditions as well as
general domestic 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 and maintain 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.
 The Company does not undertake any obligation to revise or update these forward-looking
statements included in this material even in the face of new information or future events.
Contact: IR Department, Corporate Communication Division
E-mail ：ir@p-antiaging.co.jp© 2023 Premier Anti-Aging, Co., Ltd.

42