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.

March 14, 2024

Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending July 31, 2024
(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 to file quarterly securities report:
March 14, 2024
Scheduled date for commencing dividend payments:
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly 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 first six months of the fiscal year ending July 31, 2024 (from August 1,
2023 to January 31, 2024)(1) Consolidated operating results (cumulative)
Net sales(Percentage figures indicate year-on-year changes)

Operating profit

Six months ended

Millions of yen%

Millions of yen

January 31, 2024

10,649(25.3)(205)-

January 31, 2023

14,258(20.6)

109(95.1)

Note: Comprehensive income%

Six months ended January 31, 2024:
Six months ended January 31, 2023:

Basic earnings per share
Six months ended

Yen

January 31, 2024

(193.25)

Profit attributable toowners of parent

Ordinary profit
Millions of yen

%

(199)

-

95

(95.9)(1,686) million yen [(38) million yen [Millions of yen

Yen-

January 31, 2023
(2.98)
Note: Although there are dilutive shares, diluted earnings per share are not indicated due to net loss per share.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Millions of yen

Millions of yen

January 31, 2024

10,625

5,923

55.7

July 31, 2023

12,135

7,609

62.7

Reference:

Total shareholders’ equity
As of January 31, 2024:
As of July 31, 2023:

5,923 million yen
7,609 million yen%(1,685)

-

(26)

-

- %]
- %]

Diluted earnings
per share%2. Cash dividends
Annual dividends per share

Fiscal year ended
July 31, 2023
Fiscal year ending
July 31, 2024

End of first quarterEnd of second quarterEnd of third quarter

Yen

Yen

Yen

-

0.00

-

0.00

Fiscal year ending
July 31, 2024
(Forecast)Fiscal year-end

Total

Yen

Yen

-

0.00

0.00

-

0.00

0.00

Note: Revisions to the most recently announced cash dividends forecast: None

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)
Net sales
Millions of yen

Operating profit% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen

Full year
20,000 (24.2)(1,000)Note: Revisions to the most recently announced earnings forecast: Yes(1,000)

Basic earnings
per share% Millions of yen

%

Yen

-

-

(286.68)(2,500)* Notes(1) Changes in significant subsidiaries during the current period (changes in specified subsidiaries resulting in change in scope of
consolidation): None
(2) Adoption of accounting treatments specific to the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatementsi.
Changes in accounting policies due to revisions to accounting standards, etc.: Noneii.
Changes in accounting policies other than those in i. above: Noneiii.
Changes in accounting estimates: Noneiv.
Restatements: None
(4) Number of shares issued and outstanding (common shares)i.
Number of shares issued and outstanding at the end of the period (including treasury shares)
As of January 31, 2024
8,720,534 sharesii.

As of July 31, 2023
Number of treasury shares at the end of the period
As of January 31, 2024

iii.

As of July 31, 2023
155 shares
Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended January 31, 2024
8,720,379 shares
Six months ended January 31, 2023

8,720,534 shares
155 shares

8,720,379 shares* The report on quarterly 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(Caution regarding forward-looking statements, etc.)
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 for the first six months of the fiscal year ending July 31, 2024, (4) Forward-looking information
including consolidated earnings forecasts” on page 4 of the Attachment.
(Change of amount display unit)
The amounts of account items and other items shown in the Company's consolidated financial statements were previously stated inunits of thousands of yen. However, starting from the current fiscal year, the amount has been changed to be stated in units ofmillions of yen. For ease of comparison, figures for the previous fiscal year and the first six months of the previous fiscal year havealso been changed to units of millions of yen.

Contents of Attachment

1．

2.

Qualitative information for the first six months of the fiscal year ending July 31, 2024 …..………………
(1) Consolidated financial results …..……………………………………………………………………
(2) Consolidated financial position ………..……………………………………………………………..
(3) Consolidated cash flows ...……………………………………………………………………………
(4) Forward-looking information including consolidated earnings forecasts ……………………………
Quarterly consolidated financial statements and major notes ……………………………………………...
(1) Quarterly consolidated balance sheet …………………………………………………………………
(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income…
Quarterly consolidated statement of income
Six months ended January 31, 2024 ……………………………………………………………..……
Quarterly consolidated statement of comprehensive income
Six months ended January 31, 2024 ……………..……………………………………………………
(3) Quarterly consolidated statement of cash flows ……………………………………………………..
(4) Notes to quarterly consolidated financial statements ………………….……………………………..
(Changes in scope of consolidation or scope of equity method applications…………………………
(Notes on going concern assumption) ………………………………………………………………..
(Notes when there are significant changes in amounts of equity) ……………………………………..
(Application of accounting treatments specific to the preparation ofquarterly consolidated financial statements) ………………………………………………………...
(Changes in accounting policies) ……………………………………………………………………..
(Segment information, etc.) …………………………………..………………………………………

1

2
2
3
4
4
5
5
6
6
7
8
9
9
9
9
9
9
9

1. Qualitative information for the first six months of the fiscal year ending July 31, 2024
(1) Consolidated financial results
In the first six months of the fiscal year ending July 31, 2024, economic and social activities continued to normalize.
Although there were signs of stagnation in some areas, the Japanese economy continued to recover at a moderate pace.
While there were signs of recovery in personal consumption due to the economic recovery, consumer confidence
remained stagnant due to rising prices. In the domestic cosmetics market, personal consumption recovered due toincreased opportunities to go out, and inbound demand increased due to the weaker yen.
Under such circumstances, Premier Anti-Aging Co., Ltd. (“the Company”) and its consolidated subsidiaries (“theGroup”) have been working to promote structural reforms and establish a foundation for sustained growth, which is thegoal for the first year of the medium-term management plan “2024-2027 +Beyond.”
Although sales of the recovery business conducted through the newly added subsidiary Venex Co., Ltd. (“the Venex”)
increased, sales of the anti-aging business conducted by the Company decreased, resulting in overall sales of 10,649
million yen (down 25.3% year-on-year). As gross profit decreased due to the decline in sales, the impact could not becompensated for by growth in profits from the recovery business and by curbing advertising expenses for new
acquisitions due to soaring advertising costs in the mail order market, resulting in an operating loss of 205 million yen(operating profit of 109 million yen in the same period of the previous fiscal year) and an ordinary loss of 199 million
yen (ordinary profit of 95 million yen in the same period of the previous fiscal year).
Furthermore, as the development of a new sales system was discontinued in consideration of the deterioration of thebusiness environment and the uncertainty of the future outlook, impairment loss and contract loss related to softwarein progress, as well as provision of allowance for contract loss, were recorded as extraordinary losses in the first six
months of the current fiscal year. In addition, as a result of reviewing the recoverability of the Company's deferred tax
assets in light of future business performance trends, etc., the Company reversed 517 million yen of deferred tax assets
and recorded the same amount in income tax adjustment. Income tax adjustment is included in income taxes - current.
As a result, loss attributable to owners of parent was 1,685 million yen (loss attributable to owners of parent of 26
million yen in the same period of the previous fiscal year).
Business results by segment are as follows.
Anti-aging business(Millions of yen)Six months ended
January 31, 2023
Net sales
Operating loss

Six months ended
January 31, 2024

14,258
109

9.750
(360)

Year-on-year change(%)(31.6)-Net sales
Anti-aging business sales amounted to 9,750 million yen (down 31.6% year-on-year).
Although the "DUO" brand remains the number one seller of cleansing products, the market as a whole continues toshift from balm formulations to oil formulations, and competition with low-priced balm products is intensifying,
resulting in continued struggling. In order to overcome this situation, the Company has strengthened communication
to promote understanding of brand and product values through new TV commercials, as well as utilizing events andvarious Social Networking Services (SNS) by beauticians and influencers. However, in the first six months of thecurrent fiscal year, the effects of the measures have not yet been fully realized, and although the pace of decline has
slowed, sales decreased for both mail order and wholesale sales.
The "CANADEL" brand has increased its sales compared to the previous quarter as a result of airing new TVcommercials to improve brand recognition and implementing in-store campaigns linked to the commercials tostrengthen approaches to new and existing customers. However, as the competitive environment in the all-in-one market
continued, and new acquisitions were lower than planned due to remained high advertising costs, resulting in lower
sales compared to the same period of the previous fiscal year.
The "clayence" brand continues to sell as planned, mainly for color treatments, thanks to marketing measures linked toTV commercials. Sales of quasi-drug foamy gray hair color “Clayspa Quick Color” that dyes deeply introduced last2

year are also increasing through test marketing. As a result, although sales were lower than the same period of theprevious fiscal year, increasing sales trend continues on a quarterly basis.
In addition, products such as “SINTO” brand, a supplement in the inner care business, and “C+mania” brand, a highconcentration vitamin C skin care, both launched previous fiscal year as a nurturing brand group, were performing wellthrough test marketing, but they have not been able to compensate for the decline in sales of core brands.
Operating profit (loss)
Although advertising expenses for new acquisitions were suppressed due to soaring advertising costs in the mail ordermarket, gross profit decreased due to lower sales, resulting in an operating loss of 360 million yen (operating profit of
109 million yen in the same period of the previous fiscal year).
Recovery business(Millions of yen)Six months ended
January 31, 2023

Six months ended
January 31, 2024

Year-on-year change(%)

Net sales

-

899

-

Operating profit

-

151

-

Net sales
Net sales reached a record high of 899 million yen, as the Group strengthened its supply chain management, establishedan additional production system, and demonstrated group synergy in developing new sales channels.
Operating profit
Along with the growth in sales, operating profit also reached a record high of 151 million yen.
(Note) Sales and operating profit of the recovery business for the first six months of the previous fiscal year have notbeen disclosed as the recovery business started from the third quarter of the previous fiscal year.
(2) Consolidated financial position(Assets)
Total assets at the end of the first six months of the current fiscal year decreased by 1,509 million yen from the end of
the previous fiscal year to 10,625 million yen. The main factors of increase and decrease were as follows.
Current assets decreased by 861 million yen from the end of the previous fiscal year to 8,368 million yen.This was
mainly due to a decrease of 725 million yen in cash and deposits.
Non-current assets decreased by 648 million yen from the end of the previous fiscal year to 2,256 million yen. Thiswas mainly due to an increase of 570 million yen in property, plant and equipment, a decrease of 453 million yen insoftware in progress included in "other" intangible assets, and a decrease of 517 million yen in deferred tax assets
included in investments and other assets.
(Liabilities)
Total liabilities at the end of the first six months of the current fiscal year increased by 176 million yen from the end of
the previous fiscal year to 4,702 million yen.
Current liabilities increased by 298 million yen from the end of the previous fiscal year to 3,315 million yen. This was
mainly due to an increase of 158 million yen in current portion of long-term borrowings and an increase of 69 million
yen in short-term borrowings.
Non-current liabilities decreased by 122 million yen from the end of the previous fiscal year to 1,386 million yen. Thiswas mainly due to a decrease of 243 million yen in long-term borrowings.
(Net Assets)
Net assets at the end of the first six months of the current fiscal year decreased by 1,686 million yen from the end of3the previous fiscal year to 5,923 million yen. This was mainly due to recording loss attributable to owners of parent of
1,685 million yen.
As a result, the equity ratio was 55.7%.
(3) Consolidated cash flows
Cash and cash equivalents (“net cash”) at the end of the first six months of the current fiscal year amounted to 3,938
million yen (decreased by 720 million yen from the end of the previous fiscal year).
The status of cash flows and their factors during the first six months of the current fiscal year were as follows.
(Cash flows from operating activities)
Net cash provided by operating activities in the first six months of the current fiscal year amounted to 38 million yen(773 million yen provided in the same period of the previous fiscal year). The major factors of cash inflows included
an increase of 193 million yen in trade receivables, a decrease of 236 million yen in inventories, an increase of 250
million yen in provision for contract loss and an increase of 492 million yen in impairment loss, while the major factor
of cash outflows was recording loss before income taxes of 1,108 million yen.
(Cash flows from investing activities)
Net cash used in investing activities in the first six months of the current fiscal year amounted to 745 million yen (436million yen used in the same period of the previous fiscal year). The major factors of cash outflows were payments forpurchase of property, plant and equipment of 599 million yen and purchase of intangible assets of 151 million yen.
(Cash flows from financing activities)
Net cash used in financing activities in the first six months of the current fiscal year amounted to 29 million yen (1,094
million yen provided in the same period of the previous fiscal year). The major factor of cash inflows was net increasein short-term borrowings of 69 million yen, while the major factor of cash outflows included repayments of long-termborrowings of 85 million yen.
(4) Forward-looking information including consolidated earnings forecasts
The Company has revised the full-year earnings forecasts for the fiscal year ending July 31, 2024, based on currently
available information and forecasts, taking into consideration competitive environments for cosmetics, the Group's
main sales products, and the progress of the Group’s business performance in the first six months of the current fiscal
year. For details, please refer to the " Notice concerning difference between consolidated earnings forecasts and actual
results for the first six months of the fiscal year ending July 31, 2024, recording extraordinary losses (impairment loss,etc.), reversal of deferred tax assets and revision of full-year consolidated earnings forecasts" separately released today(March 14, 2024).

4

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet(Millions of yen)
As of July 31, 2023

As of January 31, 2024

AssetsCurrent assets
Cash and deposits

4,670

3,944

Accounts receivable - trade

2,080

1,887

Finished goods

1,464

1,162

444

511

Raw materials and supplies
Other

568

863

9,229

8,368

77

647

Goowill

394

373

Other

1,117

701

Total intangible assets

1,511

1,075

Investments and other assets

1,316

533

Total non-current assets

2,905

2,256

12,135

10,625

Accounts payable - trade

258

246

Short-term borrowings

568

637

Current portion of long-term borrowings

230

388

Current portion of bonds payable26

26

Accounts payable - other

1,171

1,060

Income taxes payable

22

85

Provision for bonuses

53

64

Provision for cotract loss-

81

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

Total assets
Liabilities
Current liabilities

Other
Total current liabilities

685

724

3,016

3,315

Non-current liabilities
Bonds payable

70

57

1,366

1,122

Provision for contract loss-

168

Asset retirement obligations

38

6

Other

34

30

1,509

1,386

4,525

4,702

Share capital

1,351

1,351

Capital surplus

1,351

1,351

Retained earnings

4,888

3,203

Long-term borrowings

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Treasury shares

(1)

(1)

7,590

5,904

Foreign currency translation adjustment

19

18

Total accumulated other comprehensive income

19

18

Total shareholders' equity
Accumulated other comprehensive income

Total net assets

7,609

5,923

Total liabilities and net assets

12,135

10,6255

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income(Quarterly consolidated statement of income)(Six months ended January 31)(Millions of yen)Six months ended January 31, 2023

Six months ended January 31, 2024

(From August 1, 2022

(From August 1, 2023

to January 31, 2023)
Net sales

to January 31, 2024)
14,258

10,649

Cost of sales

3,090

2,160

Gross profit

11,168

8,489

Selling, general and administrative expenses

11,059

8,694

109

(205)

Operating profit (loss)
Non-operating income
Interest income

00Profit on currency exchange-

19

Miscellaneous income

62

Total non-operating income

722Interest expenses

6

11

Loss on currency exchange

13-

Miscellaneous losses

04

Total non-operating expenses

20

15

95

(199)

Impairment loss-

492

Cotract loss-

147

Provision of allowance for contract loss

-

250

Other

-

18

Total extraordinary losses-

908

Profit (loss) before income taxes

95(1,108)

Income taxes - current

121

577

Profit (loss)(26)(1,685)

Profit (loss) attributable to owners of parent(26)(1,685)Non-operating expenses

Ordinary profit (loss)
Extraordinary losses

6

(Quarterly consolidated statement of comprehensive income)(Six months ended January 31)(Millions of yen)Six months ended January 31, 2023 Six months ended January 31, 2024
(From August 1, 2022

(From August 1, 2023

to January 31, 2023)
Profit (loss)

to January 31, 2024)(26)(1,685)

Foreign currency translation adjustment

(12)

(0)

Total other comprehensive income

(12)

(0)

(38)

(1,686)(38)(1,686)

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

7

(3) Quarterly consolidated statement of cash flows(Miillions of yen)Six months ended January 31, 2023

Six months ended January 31, 2024

(From August 1, 2022

(From August 1, 2023

to January 31, 2023)

to January 31, 2024)

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

95(1,108)Depreciation

79

82

Amortization of goodwill-

20

Loss on retirement of non-current assets-

16

Impairment loss-

492

Loss on valuation of shares of affiliated company-

2

Increase (decrease) in allowance for doubtful accounts-

1

Increase (decrease) in provision for contract loss-

250

Interest and dividend income

(0)

(0)

Interest expenses

611

Decrease (increase) in trade receivables

844

193

Decrease (increase) in inventories

442

236

Increase (decrease) in trade payables

(32)

(12)

Increase (decrease) in accounts payable - other

(437)

(87)

Increase (decrease) in accrued expenses

(36)

128

Decrease (increase) in prepaid expenses

(164)

23

Other, net

127

(277)

Subtotal

923

(27)

Interest and dividend received

00Interest paid

(7)

(10)

Income taxes (paid) refunded

(143)

75

Net cash provided by (used in) operating activities

773

38

Cash flows from investing activities
Decrease (increase) in time deposits(0)4

Purchase of property, plant and equipment

(32)

(599)

Purchase of intangible assets
Purchase of shares of subsidiaries resulting from change in scopeof consolidation
Proceeds from collection of loans

(278)

(151)

(124)

-

-

1

Payments of leasehold

(0)

-

-

(0)

(436)

(745)

Increase (decrease) in short-term borrowings

758

69

Proceeds from long-term borrowings

500-

Repayments of long-term borrowings

(163)

(85)

Payments of leasehold and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities

Payments of redemption of bonds
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

-

(13)

1,094

(29)

(14)

15

Net increase (decrease) in cash and cash equivalents

1,416

(720)

Cash and cash equivalents at beginning of period

2,963

4,659

Cash and cash equivalents at end of period

4,379

3,938

8

(4) Notes to quarterly consolidated financial statements(Changes in scope of consolidation or scope of equity method application)
During the first six months of the current fiscal year, an absorption-type merger was carried out in which the Company
became the surviving company and Premier Wellness Science Co., Ltd., which was a wholly owned subsidiary of theCompany, became the dissolved company, so it was excluded from the scope of consolidation.
(Notes on going concern assumption)
Not applicable(Notes when there are significant changes in accounts of equity)
Not applicable(Application of accounting treatments specific to the preparation of quarterly consolidated financial statements)(Calculation of income tax expense)
Income tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effect accounting
to profit before income taxes for the consolidated fiscal year, including the first six months under review, andmultiplying profit (loss) before income taxes by the estimated effective tax rate. However, if tax expenses calculatedusing the estimated effective tax rate result in significantly lacking rationality, the statutory effective tax rate is used.
(Changes in accounting policies)
Not applicable.
(Segment information, etc.)1.
Overview of reporting segments(1) Method of determining reporting segments
The Company's reporting segments are aggregates of the Company's constituent units according to certain standards.
These components have separate financial information available and are subject to periodic review by the highest
management decision-making body to determine resource allocation and evaluate performance.
Since the Company mainly evaluates business performance by consolidated subsidiary, this is the unit for identifying
business segments. Reporting segments are determined by aggregating those business segments that have similarities
in terms of economic characteristics, markets in which products and services are sold, types of customers, etc.
(2) Types of products and services belonging to each reporting segment
The main products and services handled by each segment are listed below.
・Anti-aging business
The business primarily manufactures and sells skin care, hair care, and inner care products, and includes brands such
as DUO, CANADEL, and clayence.
・Recovery businessThis business primarily manufactures and sells recovery wear through Venex Co., Ltd..
2.
Information regarding the amount of sales and profit (loss) by reporting segment
I.
Six months ended January 31, 2023 for the previous fiscal year (From August 1, 2022 to January 31, 2023)
The descriptions by segment are omitted as the Group has a single business segment, anti-aging business.

9

II.

Six months ended January 31, 2024 for the current fiscal year (From August 1, 2023 to January 31, 2024)(Millions of yen)Anti-aging
business

Reporting segment
Recoverybusiness

Total

Adjustment
amountNote 1

Amount recorded inquarterly consolidated
statement of income
Note 2

Sales
Sales to externalcustomers

9,750

899

10,649-10,649Internal sales
between segments

-

-

-

-

-

Total
Segment profit (loss)

9,750
(360)

899
151

10,649(209)

310,649(205)

Notes: 1. The adjustment amount of 3 million yen for segment profit (loss) is the elimination of intersegment
transactions.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.
3.
Change in reporting segment
Previously, the Group's reporting segment was only the "cosmetics manufacturing and sales business," and otherbusiness segments were of little importance, so segment information was omitted. However, from the first quarter ofthe current fiscal year, segment information has been disclosed for "recovery business" as its importance has increased
among the Group.
Additionally, starting from the first quarter of the current fiscal year, the name of the reporting segment that waspreviously called "cosmetics manufacturing and sales business" has been changed to "anti-aging business."
Furthermore, regarding the segment information for the first six months of the previous fiscal year, which was createdusing the reporting segment classification method for the first six months of the current fiscal year, it is not disclosed
as the "recovery business" started in the third quarter of the previous fiscal year.
4.
Information regarding impairment losses on non-current assets or goodwill, etc. for each reporting segment(Significant impairment loss on non-current assets)
An impairment loss was recorded on some software in progress in the “anti-aging business” segment. The amount of
impairment loss recorded was 492 million yen.
(Significant changes in the amount of goodwill)
Not applicable10