Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

September 14, 2023

Consolidated Financial Results
for the Fiscal Year Ended July 31, 2023
(Under Japanese GAAP)
Company name: Premier Anti-Aging Co., Ltd.
Listing exchange: Tokyo Stock Exchange
Securities code:
4934
URL:
https://www.p-antiaging.co.jp/en
Representative:
Kiyoshi Matsuura, President
Inquiries:
Yuka Uehara, Head of Corporate Communication Division and Executive Officer
Phone:+81-3-3502-2020
Scheduled date for next annual general shareholders meeting:
October 27, 2023
Scheduled date for commencing dividend payments:
Scheduled date to file annual securities report:
October 30, 2023
Preparation of supplementary materials on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended July 31, 2023 (from August 1, 2022 to July 31, 2023)(1) Consolidated operating results(Percentage figures indicate year-on-year changes)

Net sales
Fiscal year ended

Operating profit

Millions of yen%

Millions of yen

July 31, 2023

26,400(22.1)(611)-

July 31, 2022

33,9113.3

2,414(48.4)

Note: Comprehensive income%

Millions of yen

Fiscal year ended July 31, 2023:
Fiscal year ended July 31, 2022:

Basic earnings per
share

Diluted earnings
per share

Profit attributable toowners of parent

Ordinary profit%

Millions of yen

%

(631)

-

(733)

-

2,572

(44.7)

1,424(49.0)(738) million yen [ - %]1,453 million yen [ (47.9) %]Return on equity

Operating profit/
net sales

Return on assets

Yen

Yen

%

%

%

July 31, 2023

(84.17)

-

(9.2)

(5.2)

(2.3)

July 31, 2022

163.35163.11

18.7

20.3

7.1

Fiscal year ended

Note:

Although there are dilutive shares, diluted earnings per share for the fiscal year ended July 31, 2023 is not indicated due to
net loss per share for the fiscal year ended July 31, 2023.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

July 31, 2023

12,135

7,609

62.7

872.60July 31, 2022

12,300

8,348

67.9

957.30

Reference:

Total shareholders’ equity
As of July 31, 2023:
As of July 31, 2022:

7,609 million yen
8,348 million yen%

Yen(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

July 31, 2023

2,422

(900)

179

4,659

July 31, 2022

(3,322)

(297)

501

2,963

2. Cash dividends
Annual dividends per share
End of firstquarter

End ofsecondquarter

Yen
Fiscal year ended
July 31, 2022
Fiscal year ended
July 31, 2023
Fiscal year ending
July 31, 2024
(Forecast)End ofthird
quarter

Yen

Fiscalyear-end

Yen

Yen

Total

Total cash
dividends

Payout ratio(Consolidated)

Dividends to
net assets(Consolidated)%%

Yen Millions of yen

-

0.00

-

0.00

0.00

-

-

-

-

0.00

-

0.00

0.00

-

-

-

-

0.00

-

0.00

0.00

-

3. Consolidated earnings forecasts for the fiscal year ending July 31, 2024 (from August 1, 2023 to July 31,
2024)(Percentage figures indicate year-on-year changes for full year and for six months)
Net sales

Operating profit

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary profit

Basicearnings per
share% Millions of yen% Millions of yen%

Yen

Six months ending
January 31, 2024

11,800 (17.2)

(800)

-

(800)

-

(500)

-

(57.34)

Full year

26,000

100

-

100

-

200

-

22.93

(1.5)

* Notes(1) Changes in significant subsidiaries during the fiscal year (changes in specified subsidiaries resulting in change in scope of
consolidation): None
(Note) Venex Co., Ltd., whose shares were acquired on January 31, 2023, has been included in the scope of consolidation from thecurrent fiscal year, although it does not fall under the category of change in specified subsidiary.
(2) Changes in accounting policies, changes in accounting estimates, and restatementsi.
Changes in accounting policies due to revisions to accounting standards, etc.: Yesii.
Changes in accounting policies other than those in i. above: Noneiii.
Changes in accounting estimates: Noneiv.
Restatements: None
(Note) For details, please refer to "3. Consolidated financial statements and major notes (5) Notes to consolidated financial
statements (Changes in accounting policies)" on page 11 of the attached document.
(3) Number of shares issued and outstanding (common shares)i.
Number of shares issued and outstanding at the end of the fiscal year (including treasury shares)
As of July 31, 2023
8,720,534 shares
As of July 31, 2022
Number of treasury shares at the end of the fiscal year
As of July 31, 2023

8,720,534 sharesii.

155 sharesiii.

As of July 31, 2022
Average number of shares outstanding during the fiscal year
Fiscal year ended July 31, 2023
Fiscal year ended July 31, 2022

155 shares

8,720,379 shares
8,720,265 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended July 31, 2023 (from August 1, 2022 to July
31, 2023)(1) Non-consolidated operating results(Percentage figures indicate year-on-year changes)

Net sales
Fiscal year ended

Operating profit

Ordinary profit

Millions of yen%

Millions of yen

July 31, 2023

25,434(25.1)

(230)

-

(930)

-

(1,347)-

July 31, 2022

33,9763.6

3,156(38.4)

2,739(46.4)

1,436(55.6)

Basic earnings
per share
Fiscal year ended%

ProfitMillions of yen%

Millions of yen%

Diluted earnings
per share
Yen

Yen

July 31, 2023

(154.51)-

July 31, 2022

164.70164.46

Notes: Although there are dilutive shares, diluted earnings per share for the fiscal year ended July 31, 2023 is not indicated due to net
loss per share for the fiscal year ended July 31, 2023.

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

July 31, 2023

11,041

7,432

67.3

852.30July 31, 2022

12,692

8,779

69.2

1,006.81

Reference:

Total shareholders’ equity
As of July 31, 2023:
As of July 31, 2022:%

Yen

7,432 million yen
8,779 million yen* The report on financial results is not subject to audit procedures by a certified public accountant or an auditing firm.
* Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information currently available
to, and certain assumptions that are deemed to be reasonable by the Company. Such statements are not intended as a promise by theCompany that they will be achieved. Actual results may differ from the forecasts in this document due to various factors. For theconditions forming the assumptions used in forecasting earnings and precautions regarding the use of earnings forecasts, please refer
to “1. Qualitative information on the fiscal year ended July 31, 2023, (4) Future outlook” on page 3 of the Attachment.

Contents of Attachment

1．

2.
3.

Qualitative information on the fiscal year ended July 31, 2023 …..………………………………………..
(1) Consolidated financial results …..……………………………………………………………………
(2) Consolidated financial position ………..……………………………………………………………..
(3) Consolidated cash flows ...……………………………………………………………………………
(4) Future outlook ………………………………………………………………………………………..
Basic principle on the choice of accounting standards …………………………………………………….
Consolidated financial statements and major notes ………………………………………………………..
(1) Consolidated balance sheet …………………………………………………………………………...
(2) Consolidated statement of income and consolidated statement of comprehensive income ………….
Consolidated statement of income ……………………………………………………………………
Consolidated statement of comprehensive income …………………………………………………...
(3) Consolidated statement of changes in shareholders' equity ………………………………………….
(4) Consolidated statement of cash flows ………………………………………………………………..
(5) Notes to consolidated financial statements ………………….……………………………………….
(Notes on going concern assumption) ………………………………………………………………..
(Changes in accounting policies) …………………………………………………………………….
(Segment information, etc.) …………………………………………………………………………
(Per share information) ……………………………………………………………………………….
(Significant subsequent events) …………………………………..………………………………….

1

2
2
2
3
3
4
5
5
7
7
8
9
10
11
11
11
11
12
13

1. Qualitative information on the fiscal year ended July 31, 2023
(1) Consolidated financial results
In the consolidated fiscal year ended July 31, 2023 (the “current fiscal year”), the Japanese economy gradually
recovered as economic activities normalized. As the employment and income environment gradually improves,consumer confidence is showing signs of recovery, and personal consumption is also on a recovery trend. Under theseenvironments, the domestic cosmetics market is also recovering for both Japanese and inbound tourists due to anincrease in the flow of people in the city due to the reduction of COVID-19 to category 5 infectious diseases from May.
Under such circumstances, Premier Anti-Aging Co., Ltd. (“the Company”) and its consolidated subsidiaries (“theGroup”) have been committed to “being unique” since establishment and have been striving to expand its core
cosmetics business by combining our strengths in “product planning capability” and “marketing capability” with“channel mix model.” In addition, the Company has promoted the expansion of business areas related to anti-aging,such as newly entering the inner care business and the recovery business.
The performance of each brand is as follows.
The “DUO” brand has achieved No. 1 *1 in cleansing sales for four consecutive years. We aimed to acquire newcustomers by introducing products such as "DUO the Mermaid Cleansing Balm," a collaboration product with Disney,
and "DUO the Cleansing Balm Matcha," a new product aimed at capturing inbound demand. We have also strengthened
our approach to new and existing customers through communication that promotes understanding of product value.
However, the overall cleansing market continued to shift from balm formulations to oil formulations, and the outflow
to low-priced balm products continued. As a result, both mail-order sales and wholesale sales decreased.
Although the competitive environment in the all-in-one cosmetics market intensified, sales of the “CANADEL” brandsteadily increased year on year, mainly due to the highly appealing quasi-drugs “Premier Barrier Fix” and “PremierWhite.” In the fourth quarter, we rolled out a renewed version of "Premier Lift" as a quasi-drug to the mail order channelin addition to wholesale sales channel, completing a lineup that can address customers' skin concerns and needs.
The “clayence'' brand has increased its recognition through a media mix strategy that utilizes mass marketing such as
TV commercials and achieved the No. 1 color treatment sales position*2 in about a year after its release through mailorder and wholesale sales channels. The “clayence” has achieved strong growth, with annual sales exceeding 2 billion
yen. Recently, we have started test marketing of the quasi-drug foamy gray hair color “Clay Spa Quick Color” and thescalp care series and are working to develop it into a comprehensive hair care brand.
On the financial front, sales of some products fell short of sales plans and inventories remained behind due to a decline
in sales, the withdrawal of some brands, and a review of overseas business strategies. Therefore, in order to maintain astrong financial position and solidify the foundation for future growth, we recorded a loss on inventory valuation in thethird and fourth quarters of the consolidated cumulative period by taking into consideration the sales status of someproducts.
As a result of the above activities, net sales for the current fiscal year amounted to 26,400,665 thousand yen (down
7,511,237 thousand yen year-on-year), operating loss was 611,681 thousand yen (operating profit of 2,414,318 thousand
yen for the previous fiscal year), ordinary loss was 631,229 thousand yen (ordinary profit of 2,572,326 thousand yen
for the previous fiscal year), and loss attributable to owners of parent was 733,974 thousand yen (profit attributable toowners of parent of 1,424,422 thousand yen for the previous fiscal year).
Note that descriptions by segment are omitted, as the Group is engaged in the manufacturing and sales of cosmetics
and other businesses, but other businesses are not important in monetary terms.
*1 Share ranking survey by cleansing brand by TPC Marketing Research Corp. (target period: April 2019 to March2023 / survey period June 2023)*2 “Survey on hair color treatment” (sales by brand) TPC Marketing Research Corp. (target period: July to December
2022)(2) Consolidated financial position
Assets, liabilities and net assets at the end of the current fiscal year were as follows.
(Assets)2

Total assets at the end of the current fiscal year decreased by 165,384 thousand yen from the end of the previous fiscal
year to 12,135,063 thousand yen. The main factors of increase and decrease were as follows.
Current assets decreased by 2,287,207 thousand yen from the end of the previous fiscal year to 9,229,725 thousand yen.
This was mainly due to a decrease of 2,320,135 thousand yen in finished goods.
Non-current assets increased by 2,121,823 thousand yen from the end of the previous fiscal year to 2,905,337 thousand
yen. This was mainly due to an increase of 475,976 thousand yen in software in progress, an increase of 394,052
thousand yen in goodwill, an increase of 205,518 thousand yen in patent rights, an increase of 449,184 thousand yen
in leasehold deposits, and an increase of 437,324 thousand yen in deferred tax assets.
(Liabilities)
Total liabilities at the end of the current fiscal year increased by 573,223 thousand yen from the end of the previous
fiscal year to 4,525,650 thousand yen. The main factors of increase and decrease were as follows.
Current liabilities decreased by 204,104 thousand yen from the end of the previous fiscal year to 3,016,436 thousand
yen. This was mainly due to a decrease of 397,190 thousand yen in accounts payable - other and an increase of 178,000
thousand yen in short-term borrowings.
Non-current liabilities increased by 777,327 thousand yen from the end of the previous fiscal year to 1,509,213
thousand yen. This was mainly due to an increase of 665,313 thousand yen in long-term borrowings.
(Net Assets)
Net assets at the end of the current fiscal year decreased by 738,607 thousand yen from the end of the previous fiscal
year to 7,609,413 thousand yen. This was mainly due to a decrease of 733,974 thousand yen in retained earnings.
As a result, the equity ratio was 62.7%.
(3) Consolidated cash flows
Cash and cash equivalents (“net cash”) at the end of the current fiscal year amounted to 4,659,173 thousand yen(increased by 1,696,005 thousand yen from the end of the previous fiscal year).
The status of cash flows and their factors during the current fiscal year were as follows.
(Cash flows from operating activities)
Net cash provided by operating activities in the current fiscal year amounted to 2,422,540 thousand yen (cash outflow
of 3,322,340 thousand yen in the previous fiscal year). The major factors of cash inflows were a decrease in tradereceivables of 1,174,676 thousand yen and a decrease in inventories of 2,564,254 thousand yen, while the major factorsof cash outflows were income taxes paid of 760,763 thousand yen, a decrease in accounts payable - other of 435,814
thousand yen and a decrease in trade payables of 223,287 thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities in the current fiscal year amounted to 900,970 thousand yen (cash outflow of
297,682 thousand yen in the previous fiscal year). The major factor of cash inflow was proceeds from collection oflease and guarantee deposits of 5,657 thousand yen, while the major factors of cash outflows were payments foracquisition of shares of subsidiaries due to change in scope of consolidation of 124,013 thousand yen and purchase ofintangible assets of 751,191 thousand yen.
(Cash flows from financing activities)
Net cash provided by financing activities in the current fiscal year amounted to 179,774 thousand yen (cash inflow of
501,623 thousand yen in the previous fiscal year). The major factor of cash inflow was proceeds from long-termborrowings of 500,000 thousand yen, while the major factor of cash outflow was repayments of long-term borrowingsof 484,926 thousand yen.
(4) Future outlook
Looking to the future, the economy is expected to continue to recover at a moderate pace, with the employment andincome environment improving and various government policies having an effect. However, amid the global tighteningof monetary policy, there is a risk that a downturn in overseas economies will put downward pressure on the Japanese
economy, and it is necessary to pay sufficient attention to the effects of rising prices and fluctuations in financial andcapital markets. In addition, the domestic cosmetics market has continued to recover since March, when the obligation
to wear masks was lifted. However, it is expected that the trend of polarization in the price range will continue, with3

the high and low price ranges growing, and the mid-range being weak.
Under these circumstances, in the mail order channel, we will review the targets and appeal points for each brand andstrengthen communication to promote understanding of product value through beauticians and influencers.
Furthermore, in the wholesale sales channel, we will strengthen measures for each wholesaler company and change instore sales promotions to match the actual sales target demographic.
Regarding the “DUO” brand, we will maintain our position as No. 1 in sales in the cleansing category. In addition, we
will aim for a reversal of sales by strengthening measures for beauticians and influencers and developing various
measures for subscription sales for new customers, and by reforming measures to improve the continuation rate forexisting customers.
The “CANADEL” brand, which is being developed as a second pillar of earnings, now has a lineup that responds tocustomer concerns in all directions. We will implement measures to further increase awareness from both digitalmarketing and mass marketing, and aim to expand our customer base.
Regarding the hair care brand "clayence," we will continue to raise awareness through a media mix strategy that utilizes
mass marketing such as TV commercials and expand sales through mail order and wholesale sales channels.
Furthermore, we will develop “clayence” as a comprehensive hair care brand through the development of quasi-drug
gray hair color and scalp care series.
In addition, we will strengthen marketing measures for the inner care and recovery businesses that we entered in theprevious fiscal year and aim to strengthen our business foundation in order to become an anti-aging company.
With these endeavors, the Company expects to achieve consolidated net sales of 26,000 million yen (down 1.5% yearon-year), operating profit of 100 million yen (operating loss of 611 million yen for the previous fiscal year), ordinary
profit of 100 million yen (ordinary loss of 631 million yen for the previous fiscal year) and profit attributable to ownersof parent of 200 million yen (loss attributable to owners of parent of 733 million yen for the previous fiscal year) for
the fiscal year ending July 31, 2024.
The earnings forecast and other forward-looking statements contained in this document are based on information
currently available to, and certain assumptions that are deemed to be reasonable by the Group. Actual results may differ
from the forecast due to various factors. Since the timing of the convergence of COVID-19 and the scope of its impact
may change significantly in the future, the Company will promptly disclose any events that may affect the Group'sbusiness results.

2. Basic principle on the choice of accounting standards
The Group has adopted Japanese GAAP for accounting standards, in consideration of comparability of financial
statements from period to period and between companies. As for the adoption of IFRS (International Financial
Reporting Standards), the Group will appropriately consider it by taking into account the domestic and international
circumstances.

43. Consolidated financial statements and major notes(1) Consolidated balance sheet(Thousands of yen)Previous fiscal year

Current fiscal year

(As of July 31, 2022)(As of July 31, 2023)

AssetsCurrent assets
Cash and deposits

2,973,269

4,670,475

Accounts receivable - trade

3,071,846

2,080,874

Finished goods

3,784,814

1,464,679

Raw materials and supplies

576,394444,856

Prepaid expense

418,908

306,561

Other

691,698

262,278

11,516,933

9,229,725

Buildings, net

79,87429,514

Vehicles, net

2,374

1,583

Tools, furniture and fixtures, net

27,50424,966

Total current assets
Non-current assets
Property, plant and equipment

Land

492

492

-

21,132110,246

77,688

Software243,431

415,171

Software in progress

10,611

486,587

Right to use facilities

6,360

6,209

-

205,518-

394,052

Construction in progress
Total property, plant and equipment
Intangible assets

Patent rights
Goodwill
Other

5,864

3,680

266,267

1,511,219

Investment securities

19,99019,990Long-term prepaid expenses

20,40011,591

Leasehold deposits

279,952

729,137

Deferred tax assets

80,305

517,629

Other

6,350

111,619-(73,540)

407,000

1,316,429

783,5142,905,337

12,300,447

12,135,063

Accounts payable - trade435,845

258,584

Short-term borrowings

390,000

568,000

Current portion of long-term borrowings

322,114230,244

Total intangible assets
Investments and other assets

Allowance for doubtful acconts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities

Current portion of bonds payable-

26,600Accounts payable - other

1,568,285

1,171,094

Income taxes payable

165,723

22,877-

164,253

Accrued consumption taxes
Provision for bonuses

18,60753,415

Other319,964

521,367

3,220,541

3,016,436

Total current liabilities
Non-current liabilities
Bonds payable-

70,300Long-term borrowings

701,114

1,366,427

Asset retirement obligations

30,77238,438Deferred tax liabilities
Total non-current liabilities
Total liabilities

5-34,048731,886

1,509,213

3,952,427

4,525,650

(Thousands of yen)Previous fiscal year

Current fiscal year

(As of July 31, 2022)(As of July 31, 2023)

Net assets
Shareholders' equity
Share capital

1,351,544

1,351,544

Capital surplus

1,351,544

1,351,544

Retained earnings

5,622,227

4,888,253

Treasury shares(1,313)(1,313)8,324,004

7,590,029

Foreign currency translation adjustment

24,016

19,383

Total accumulated other comprehensive income

24,016

19,383

Total shareholders' equity
Accumulated other comprehensive income

Total net assets

8,348,020

7,609,413

Total liabilities and net assets

12,300,447

12,135,063

6

(2) Consolidated statement of income and consolidated statement of comprehensive income(Consolidated statement of income)(Thousands of yen)Previous fiscal year

Current fiscal year

(From August 1, 2021

(From August 1, 2022

to July 31, 2022)

to July 31, 2023)

Net sales

33,911,903

26,400,665

Cost of sales

7,282,948

7,157,776

Gross profit

26,628,955

19,242,889

Selling, general and administrative expenses

24,214,636

19,854,571

Operating profit (loss)

2,414,318(611,681)

Interest income

1,392

1,602

Surrender value of insurance policies

35,693-

Profit on currency exchange

136,111

-

-

5,780

Non-operating income

Commission received
Miscellaneous income
Total non-operating income

2,683

17,667

175,881

25,04914,87918,794Non-operating expenses
Interest expenses
Loss on currency exchange

-

4,809

Provision of allowance for doubtful accounts-

20,000Miscellaneous losses

2,994

993

Total non-operating expenses

17,87344,5972,572,326(631,229)

Ordinary profit (loss)
Extraordinary losses
Loss on retirement of non-current assets

-

3,660

Impairment loss-

24,222

Loss on valuation of shares of affiliated company-

373

Total extraordinary losses-

28,256

Profit (loss) before income taxes

2,572,326(659,485)

Income taxes - current

1,099,631

543,513

Income taxes - deferred

48,272(469,025)

Total income taxes

1,147,904

74,488

Profit (loss)

1,424,422(733,974)

Profit (loss) attributable to owners of parent

1,424,422(733,974)7

(Consolidated statement of comprehensive income)(Thousands of yen)

Profit (loss)

Previous fiscal year

Current fiscal year

(From August 1, 2021

(From August 1, 2022

to July 31, 2022)

to July 31, 2023)

1,424,422(733,974)

29,549(4,632)Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income (loss)

29,549(4,632)

1,453,971(738,607)

1,453,971(738,607)--

Comprehensive income (loss) attributable to
Owners of parent
Non-controlling interests8(3) Consolidated statement of changes in shareholders' equity
Previous fiscal year (From August 1, 2021 to July 31, 2022)(Thousands of yen)
Accumulated othercomprehensive income

Shareholders' equity

Balance at beginning of period
Cumulative effect ofchanges in accounting policies
Balance at beginning of period reflectingchanges in accounting policies
Changes of items during period
Issuance of new shares

SharecapitalCapitalsurplusRetainedearnings

1,348,130

1,348,130

Balance at end of period(1,120)(15,705)
1,348,130

1,348,130

3,414

3,414

Profit (loss) attributable to owners of parent
Purchase of treasury shares
Net changes in items other than shareholders'equityTotal changes of items during period

4,213,510

Total
shareholders'equityTreasuryshares4,197,805

6,908,650

Foreigncurrencytranslation
adjustment(5,533)

Total
accumulated
othercomprehensive
income(5,533)(15,705)(1,120)6,892,945

Total
net assets

6,903,117(15,705)(5,533)(5,533)

6,887,411

6,829

6,829

1,424,422

1,424,422

(192)

(192)

(192)

1,424,422

29,54929,54929,549

3,414

3,414

1,424,422(192)

1,431,059

29,54929,5491,460,608

1,351,544

1,351,544

5,622,227(1,313)8,324,004

24,01624,016

8,348,020

Current fiscal year (From August 1, 2022 to July 31, 2023)(Thousands of yen)
Accumulated othercomprehensive income

Shareholders' equity

Balance at beginning of period

SharecapitalCapitalsurplusRetainedearnings

1,351,544

1,351,544

5,622,227

Treasuryshares(1,313)

Total
shareholders'equityForeigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income8,324,004

24,01624,016(4,632)(4,632)Total
net assets

8,348,020

Changes of items during period
Profit (loss) attributable to owners of parent
Net changes in items other than shareholders'equityTotal changes of items during period
Balance at end of period(733,974)(733,974)(733,974)(4,632)--(733,974)-(733,974)(4,632)(4,632)(738,607)

1,351,544

1,351,544

4,888,253(1,313)7,590,029

19,383

19,3837,609,413

9

(4) Consolidated statement of cash flows(Thousands of yen)Previous fiscal year

Current fiscal year

(From August 1, 2021

(From August 1, 2022

to July 31, 2022)

to July 31, 2023)

Cash flows from operating activities
Profit (loss) before income taxes

2,572,326(659,485)

85,453

184,037

Amortization of goodwill-

24,410Loss on retirement of non-current assets

-

3,660

Impairment loss-

24,222

Loss on valuation of shares of affiliated company-

373

Increase (decrease) in allowance for doubtful accounts-

20,724

Interest income(1,392)(1,602)

Interest expenses

14,87918,794

Depreciation

Decrease (increase) in trade receivables

327,717

1,174,676

Decrease (increase) in inventories(1,662,060)

2,564,254

Increase (decrease) in trade payables(374,179)(223,287)

Increase (decrease) in accounts payable - other(391,318)(435,814)

Increase (decrease) in accrued expenses

66,89969,999Decrease (increase) in prepaid expenses(235,619)

119,105

Increase (decrease) in accrued consumption taxes(521,607)

239,385

Other, net(597,387)

77,867

Subtotal(716,288)

3,201,321

Interest received
Interest paid

1,391

1,601

(15,459)(19,619)

Income taxes paid

(2,591,984)(760,763)

Net cash provided by (used in) operating activities(3,322,340)

2,422,540(1,200)(1,200)Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment(26,452)(27,131)

Purchase of intangible assets(176,887)(751,191)(9,984)--(124,013)

Purchase of investment securities
Payments for acquisition of shares of subsidiaries due to change
in scope of consolidation
Proceeds from collection of loans
Payments of leasehold and guarantee deposits
Proceeds from collection of lease and guarantee deposits

-

1,169

(161,476)(2,919)

1,566

Payments of insurance funds

5,657
-

Proceeds from cancellation of insurance funds
Net cash provided by (used in) investing activities(1,340)76,752-(297,682)(900,970)

390,000

178,000

Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

474,000

500,000

Repayments of long-term borrowings(362,184)(484,926)

Payments of redemption of bonds
Purchase of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents-(13,300)(192)-

501,623

179,774

29,412(5,338)Net increase (decrease) in cash and cash equivalents(3,088,987)

1,696,005

Cash and cash equivalents at beginning of period

6,052,155

2,963,167

Cash and cash equivalents at end of period

2,963,167

4,659,17310

(5) Notes to consolidated financial statements(Notes on going concern assumption)
Not applicable(Changes in accounting policies)(Application of implementation guidance on accounting standard for fair value measurement)
The "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No. 31, June17, 2021, the “Implementation Guidance on Accounting Standard for Fair Value Measurement”) is applied from the
beginning of the current fiscal year, and in accordance with the transitional treatment set forth in Paragraph 27-2 of the
Implementation Guidance on Accounting Standard for Fair Value Measurement, the Group has decided to apply
prospectively the new accounting policies established by the Implementation Guidance on Accounting Standard for
Fair Value Measurement. This change has no impact on the consolidated financial statements.
(Segment information, etc.)(Segment information)
The information is omitted as the Group is engaged in the manufacturing and sales of cosmetics and other businesses,
but other businesses are not important in monetary terms.
(Related information)
Previous fiscal year (From August 1, 2021 to July 31, 2022)
1. Information by product and service
The information is omitted as the Group’s sales are all related to the business of manufacturing and sales of cosmetics.
2. Information by area
(1) Net sales
The information is omitted as sales to external customers in Japan account for more than 90% of the net sales in the
consolidated statements of income.
(2) Property, plant and equipment
The information is omitted as the amount of property, plant and equipment located in Japan accounts for more than
90% of the amount of property, plant and equipment in the consolidated balance sheet.
3. Information by main customers(Thousands of yen)
Name of customers
Ida Ryogokudo Co., Ltd.

Net sales
6,683,625

Related segments
Manufacturing and sales of cosmetics

Current fiscal year (From August 1, 2022 to July 31, 2023)
1. Information by product and service
The information is omitted as the Group is engaged in the manufacturing and sales of cosmetics and other businesses,
but other businesses are not important in monetary terms.
2. Information by area
(1) Net sales
The information is omitted as sales to external customers in Japan account for more than 90% of the net sales in the
consolidated statements of income.
(2) Property, plant and equipment
The information is omitted as the amount of property, plant and equipment located in Japan accounts for more than
90% of the amount of property, plant and equipment in the consolidated balance sheet.
11

3. Information by main customers
Name of customers(Thousands of yen)
Related segments

Net sales

Ida Ryogokudo Co., Ltd.

4,188,392

Manufacturing and sales of cosmetics(Information on impairment losses on non-current assets by reportable segment)
Previous fiscal year (From August 1, 2021 to July 31, 2022)
Not applicable
Current fiscal year (From August 1, 2022 to July 31, 2023)
The amount of impairment loss on non-current assets was 24,222 thousand yen.
The information by reportable segment is omitted as the Group is engaged in the manufacturing and sales of cosmetics
and other businesses, but other businesses are not important in monetary terms.
(Information on amortization and unamortized balance of goodwill by reportable segment)
Previous fiscal year (From August 1, 2021 to July 31, 2022)
Not applicable
Current fiscal year (From August 1, 2022 to July 31, 2023)
The amortized amount for the current fiscal year was 24,410 thousand yen, and the unamortized balance was 394,052
thousand yen.
The information by reportable segment is omitted as the Group is engaged in the manufacturing and sales of cosmetics
and other businesses, but other businesses are not important in monetary terms.
(Information on gain on negative goodwill by reportable segment)
Not applicable(Per share information)
Previous fiscal year
(From August 1, 2021
to July 31, 2022)
Net assets per share
Basic earnings (losses) per share957.30 yen
163.35 yen

Current fiscal year
(From August 1, 2022
to July 31, 2023)
872.60 yen(84.17) yen

Diluted earnings per share
163.11 yen- yen
Notes: 1. Although there are dilutive shares, diluted earnings per share for the current fiscal year is not indicated due to
net loss per share for the current fiscal year.
2. The basis for calculating net assets per share is as follows.
(Thousands of yen)Previous fiscal year
(As of July 31, 2022)

Current fiscal year
(As of July 31, 2023)

Total net assets
Amount deducted from total net assets

8,348,020-

7,609,413-

Net assets related to common shares at the end of theperiod8,348,020

7,609,413

Number of common shares used in the calculation of net
assets per share at end of period

8,720,379 shares

8,720,379 shares

123. The basis of calculating basic earnings (losses) per share and diluted earnings per share is as follows.
(Thousands of yen)Previous fiscal year
(From August 1, 2021
to July 31, 2022)

Current fiscal year
(From August 1, 2022
to July 31, 2023)

Basic earnings (losses) per share
Profit (loss) attributable to owners of parent
Amount not attributable to common shareholders
Profit (loss) attributable to owners of parent for commonsharesAverage number of common shares during period

1,424,422(733,974)--

1,424,422(733,974)

8,720,265 shares

8,720,379 shares--

12,707 shares(12,707 shares)

(-)

-

-

Diluted earnings per share
Adjustment to profit attributable to owners of parent
Increase in the number of common shares(Of which, share subscription rights)
Description of dilutive shares not included in thecalculation of diluted earnings per share due to the absenceof dilutive effects(Significant subsequent events)(Absorption-type merger of a consolidated subsidiary)
At the Board of Directors meeting held on September 14, 2023, the Company has resolved to merge its wholly owned
subsidiary Premier Wellness Science Co., Ltd. (“the Premier Wellness Science”) and to waive a portion of its claims
against it prior to the merger.
1. Summary of the merger(1) Name of the company involved in the merger and outline of the business
Name of the company: Premier Wellness Science Co., Ltd.
Outline of the business: Research and development and product development related to health, beauty, anti-aging,and sports, as well as contract consulting services for these(2) Date of the merger
November 1, 2023 (Scheduled)(3) Method of the merger
The merger will be an absorption-type merger in which the Company will be the surviving company and PremierWellness Science will be the dissolved company.
(4) Name of the company after the merger
Premier Anti-Aging Co., Ltd.
(5) Other matters related to summary of the merger
The Company will merge Premier Wellness Science in order to improve the efficiency of group management.
The Company plans to waive a part of claims it has against Premier Wellness Science, and the simplified merger
procedure will take place after the insolvency situation is resolved.
Contents of claims to be waived: Long-term loans to affiliated companies
Amount of claims to be waived: 700,000 thousand yen
Implementation date: October 31, 2023 (scheduled)
2. Summary of accounting treatment to be implemented

13Based on the “Accounting Standards for Business Combinations” (Business Accounting Standards No. 21, January
16, 2019) and “Application Guidelines for Business Combination Accounting Standards and Business Separation
Accounting Standards” (Business Accounting Standards Application Guidelines No. 10, January 16, 2019), thetransaction will be treated as a transaction under common control.

14