Business Plan and
Growth Potential
Explanatory Material

Premier Anti-Aging Co., Ltd.

Tokyo Stock Exchange Growth 4934
October 31, 2022

INDEX

01

Corporate Overview

02

Market Environment

03

Characteristics and Strengths

04

Growth Strategy

05

Risk Information

06

APPENDIX© 2022 Premier Anti-Aging Co., Ltd.

2

01 Corporate Overview© 2022 Premier Anti-Aging Co., Ltd.

3

Corporate Profile
Name

Premier Anti-Aging Co., Ltd.

Established

December 2009

Head office

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

Board
members

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

Employees

223 (as of July 31, 2022)

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.

© 2022 Premier Anti-Aging Co., Ltd.

4

Management 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.

© 2022 Premier Anti-Aging Co., Ltd.

5

Corporate History
2009・－ December:－Established Premier Anti-Aging Co., Ltd. in Toranomon, Minato-ku, Tokyo

2010・－ February: Started sales of cosmetic products with the launch of the DUO brand－and began selling The Cleansing Balm through Mail-order/EC service

2012・－ 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: Listedon 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© 2022 Premier Anti-Aging Co., Ltd.

6

Key Brands

 Expanded our product line-up, which now includes four skin care brands, one hair care brand, and one
men’s category brand.
 Making steady progress on our path to transforming our business structure to one that is supported bymultiple brands.
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*282％

 Offering 33 SKUs*1

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

Sales composition
ratio*2

16％

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 5 SKUs*1

2％*1: SKU refers to the number of regular products as of July 31, 2022, excluding limited editions and different sizes *2: Calculated based on FY2022 net sales.

© 2022 Premier Anti-Aging Co., Ltd.

7

Characteristics of Main Sales Channels
 Mail order sales are characterized by high unit sales per sales, while wholesale sales are characterized
by quick turnaround.

Mail order sales

Wholesales sales

Accumulated profit＋

0

Accumulated profit

Mail order sales =Value of end-userpurchase amount

Recovery period

New customer
acquisition costs－＋

Wholesale sales =Amount sold to wholesalers＋
Period－0＋PeriodAcquisition period andrecovery period－High unit price of sales
due to no intermediary margin＋

0
Profits are generated from thestart of the transaction© 2022 Premier Anti-Aging Co., Ltd.

8

Organizational Characteristics

 We focus on core operations such as product development and marketing, while outsourcing logistics,
manufacturing, and most of the call center operations, etc.
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.

(Note) Other overseas sales are omitted from the business flow chart because their impact on business performance is minimal.

© 2022 Premier Anti-Aging Co., Ltd.

9

Organizational Characteristics
 Achieving asset-light management and maintaining a high level of sales per employee compared toother companies in the same industry.

Sales per employee (Millions of yen)
153.29A

Equipment

152.07

Premier Anti-Aging

D

Building

98.26

C

93.48

81.88

B

E

Main facilities (Thousands of yen)

49.20

G

42.34

F

42.29

H

41.92

I

40.06

Book
value

Vehicles andtransportationequipment
Tools, furniture andfixtures

Office equipment, etc.
79,8742,374
27,504

Software243,431

Total

353,183

Total assets

12,300,447
Note: As of July 31, 2022

Ensure a flexible production systemthat is resilient to changes in theexternal and internal eivironment
Note: Created based on the most recent securities reports of companies in the cosmetics industry© 2022 Premier Anti-Aging Co., Ltd.

10

Historical Performance In addition to stable sales from the subscription sales model, sales increased due to the expansion ofwholesale sales.
 FY2022 operating profit due to a decline in wholesale sales, which had high profit margins, and anincrease in SG&A expenses.

Sales

Operating Profit(Millions of yen)

(Millions of yen)

36,00034,00032,81532,00033,911

5,000
4,680
4,500

30,0004,000

28,00026,0003,500

24,00022,0003,000

20,50820,00018,000

2,414

2,500

16,0002,000

14,00011,92912,000

1,653
1,500

10,000
8,000
6,000

1,000

4,975

4,000

500

2,000
0

138
FY2018FY2019FY2020

FY2021

FY20220

FY2018242
FY2019FY2020

FY2021

FY2022© 2022 Premier Anti-Aging Co., Ltd.

11

02 Market Environment© 2022 Premier Anti-Aging Co., Ltd.

12

Market Size of the Domestic Cosmetics Market
The domestic cleansing market, which includes balms, totaled 141.3 billion yen in 2021.
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 2021” by Fuji Keizai© 2022 Premier Anti-Aging Co., Ltd.

13

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.
Trends in the domestic market size for cosmetics and skin care
(Billions of yen)

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 No. 3” by Fuji Keizai© 2022 Premier Anti-Aging Co., Ltd.

14

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)

Trends in the domestic market size for cleansing

180

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
2023
2024
(Estimate) (Forecast) (Forecast)

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

15

03 Characteristics and Strength© 2022 Premier Anti-Aging Co., Ltd.

16

Business Model Established a business model based on three characteristics.

Subscription sales model

Achieved a high repeat rate by providing highly
effective and satisfying products with excellent
cost performance.
Subscription sales model creates stable stock sales.

Marketing capability

Adds a unique emotional value by combining digitalmarketing that promotes functional value with mass
marketing.
Unique marketing capabilities differentiate brandvalue through a digital and mass media mix strategy.

Product planning capability

We have a network of OEMs with excellent productappeal throughout Japan and have built a systemthat enables speedy development.
Strong product planning capabilities enable productdevelopment that accurately captures the unmet
needs of the market and customers.

© 2022 Premier Anti-Aging Co., Ltd.

17

Business Model (1): Subscription Sales Model Mail-order sales, which account for approximately 90% of subscription sales, have grown steadily andremained stable.
 High-margin wholesale sales also established as a new channel.

(Millions of yen)

12,000Trends in net sales by channel
Mail-order
Wholesale

Others (including overseas subsidiaries)
10,000

8,000

6,000

18%

33%

16%

78%

Mail-order/EC

27%

Wholesale

25%

35%

28%

32%
21%
18%

4,000

17%

23%

22%
71%

21%

2,000

0

13%

13%

82%

76%

4Q

1Q

81%

75%

76%

67%

70%
64%

62%

78%

1Q

2Q
3Q
FY2022

68%

76%

85%

85%

1Q

2Q
3Q
FY20192Q
3Q
FY2020

4Q

1Q

2Q
3Q
FY2021

4Q

4Q© 2022 Premier Anti-Aging Co., Ltd.

18

Business Model (1): Subscription Sales Model The number of members who support the subscription sales model has steadily increased, and the total
number of members has exceeded 3.5 million.
 Build long-term customer relationships and activate membership base.
(People)Trends in the total number of mail-order/EC customers

1

3,500,000

1

3,000,000

2,500,000

1

2,000,000
1
1,500,000
01,000,0000

500,000

0

8

9 10 11 12 1
1Q

2

2Q

3
3Q

FY2020

4

5

6
4Q

7

8

9 10 11 12 1
1Q

2

2Q

3
3Q

FY2021

4

5

6
4Q

7

8

9 10 11 12 1
1Q

2

2Q

3
3Q

4

5

6

7

0

4Q

FY2022© 2022 Premier Anti-Aging Co., Ltd.

19

Business Model (1): Subscription Sales Model The number of cross-selling customers for two or more subscriptions has increased, mainly forclayence, which was launched in March 2022.
 Realize higher unit prices and cost reductions by increasing the number of cross-selling customers.

Number of customers who subscribe 2 or more products and the relevant ratio
Customers who subscribe 2 or more products
Ratio of customers who subscribe 2 or more products

13.3%
9.7%
100,000
people

1Q

2Q

3Q

4Q

1Q

FY20202Q
FY2021

3Q

4Q

1Q

2Q

3Q

4Q

FY2022

Note: The number of customers who subscribe 2 or more products refers to customers who are purchasing 2 or moreproduct categories (e.g., balms and serums) on a regular basis.

© 2022 Premier Anti-Aging Co., Ltd.

20

Business Model (2): Product Planning Capability A complete line-up of four skin care brands, one hair care brand, and one men's category brand.
 Premier Wellness Science, a subsidiary of the Company, launched new brands, Ko and Reinca, based on
scientific evidence.

 Our key and inaugural brand.
Pioneer in the cleansing
balm market and continues
to drive sales.
 Launched in February 2010.
 Currently have 33 SKUs.*1

 Applying brand nurturing knowhow gained through DUO and
CANADEL.
 Home hair care brand that
focuses on young generation
with graying hair.
 Launched March 2022.
 Currently have 5 SKUs.*1

 Cosmetic brands for sensitive skinwith cica*2 substance in every
product. Has been introduced to
the Chinese market.
 Launched in September 2020.
 Currently have 14 SKUs.*1

 Nurturing as the second
brand after DUO. Focuseson shortening time required
for skin care to addressneeds of busy modern
women.
 Launched in April 2019.
 Currently have 7SKUs.*1

 Taking advantage of the highrecognition of the DUO brand,
we are newly expanding into
the rapidly growing men's
cosmetics market.
 Launched April 2022.
 Currently have 2 SKUs.*1

 An SDG-conscious organic
cosmetics brand that promotes
sustainable development.
 Launched in October 2020.
 Currently have 9 SKUs.*1*1: SKU refers to the number of regular products as of July 31, 2022, excluding limited editions and different sizes *2: Cica refers to the substance extracted from a plant called Centella asiatica© 2022 Premier Anti-Aging Co., Ltd.

21

Business Model (3): Marketing Capability Due to the impact of advertising regulations, the advertising expenses ratio and new customer
acquisition expenses ratio in the first quarter of the fiscal year ended July 31, 2022, were 29.9% and15.3%, respectively. However, the impact of regulations disappeared from the second quarter onward,
and the ratio for the full year was almost the same as the previous year.
 Promoting acquisition of new customers using performance-based digital marketing.
 Efficient execution of advertising through media mix effects combined with mass marketing.
YoY
+3.3%

Millions of yen

33,91132,815Advertising expenses/net sales
YoY
+0.8%

12,92012,812

Net
sales
売上高

FY2021OthersOthers

TVCM

TVCM

CAC

CAC

広告宣伝費
Ad
expenses

売上高
Net
sales

39.0％ ➡

38.1％(-0.9 pts)

Customer acquisition costs/net sales

25.7％ ➡

23.4％(-2.3 pts)Ad
expenses
広告宣伝費

FY2022© 2022 Premier Anti-Aging Co., Ltd.

22

04 Growth Strategy© 2022 Premier Anti-Aging Co., Ltd.

23

Review of FY2022 (Financial Results)
 Net sales fell short of the initial plan due to the materialization of the risk factors that had beenfactored in, such as subsiding the DUO black balm boom, intensifying competition in the cleansing
market, delays in acquiring new customers due to advertising regulations, and review of marketingmeasures due to Chinese regulations, etc.
 Operating profit fell short of the initial plan mainly due to lower than planned sales in the highly
profitable retail business.
 In addition, investment was made based on a management decision that saw it as an opportunity togrow the new brands of CANADEL and clayence, and expenses were upfront due to the review ofmarketing measures due to the impact of Chinese laws and regulations.
 Both net sales and profits almost achieved the revised plan announced in the third quarter of the fiscal
year ended July 31, 2022.
(Millions of yen)

FY2022
Initial Plan

FY2022
RevisedPlan

FY2022
ActualIncrease/
Decreasevs Initial
Plan

Increase/
Decreasevs RevisedPlan

Net sales

40,00034,00033,911(6,089)(89)

Operating profit

6,000

2,300

2,414

(3,586)114

Ordinary profit

6,020

2,500

2,572

(3,448)

72

Profit attributable to owners of
the parent

3,460

1,380

1,424

(2,036)44© 2022 Premier Anti-Aging Co., Ltd.

24

Review of FY2022 (Growth Strategy) In the fiscal year ended July 31, 2022, we implemented various initiatives with three growth drivers:
growth of the DUO brand products other than balm, growth of the CANADEL brand, and growth of theoverseas business.

Positives

NegativesProgress made in transforming our business structure that has beensolely dependent on the sales growth of DUO into one supported bymultiple brands including CANADEL and clayence .
CANADEL and clayence grew and sales composition of DUO was
82%, CANADEL was 16% and clayence was 2% (DUO was 89%,
CANADEL was 10% and clayence was 0% in the first quarter).
Launched a new hair care brand, “clayence” and men’s brand, “DUO
MEN.”
Duo sales declined more than expected as the black balm boom
subsided and increased competition in the cleansing balm market.
Despite launching DUO brand facial wash, sales growth for products
other than balms remained an issue.
Regarding overseas investment, we revised our strategy,
strengthened our structure by appointing an external person who isfamiliar with the business as the general manager of our Chinese
subsidiary, and proceed with business development while hedging
risks.
© 2022 Premier Anti-Aging Co., Ltd.

25

FY2023 Forecast Plan to increase sales by 9.1%, which will be mainly driven by growth of CANADEL and clayence.
 Aim to increase operating profit by 24.3% by meticulously managing costs and effectively and efficiently
investing in advertising.
(Millions of Yen)FY2022
ActualFY2023
Forecast

Increase/
Decrease

YoY

Full year
Six months

Net sales

33,91137,000

3,088

9.1％

Operating profit

2,414

3,000

585

24.3％

Operating profit margin (%)

7.1%

8.1％

－

1.0ptsOrdinary profit

2,572

2,985

412

16.0％

Profit attributable to owners of parent

1,424

1,820

395

27.8％

Net sales

17,97016,700(1,270)(7.1％)

Operating profit

2,248

930

(1,318)(58.6％)

Operating profit margin (%)

12.5％

5.6％

－

(6.9pts)

Ordinary profit

2,321

930

(1,391)(59.9％)

Profit attributable to owners of parent

1,360

550

(810)

(59.6％)© 2022 Premier Anti-Aging Co., Ltd.

26

Growth strategy for FY2023

 Established the brand management division from this fiscal year and will implement a growth strategy
based on the two axes of brand and channel.
 The four priority measures are to maintain DUO's No. 1 position in sales, grow CANADEL and clayence,and introduce new brands.
CHANNEL
Mail Order/EC

CANADEL Taking on challenge to become
the No.1 brand in the all-in-one
category.

clayence Aim to generate sales throughwholesale channels by entering
the mass market.

New
Brands Launch multiple brands in new
categories.

Maintain/enhancebranding power
Invest in effective
and efficient
advertising

CX promotion

BRAND

DUO

 Aim to No.1 cleansing balm
sales for 4 consecutive years.
 Increase sales of non-balm
products.

WholesaleEnter mass market by
expanding channel mix

Horizontal deployment ofbrand development know-how© 2022 Premier Anti-Aging Co., Ltd.

27

DUO Brand

 Sales decreased due to intensifying competition since FY2022 Q2, however, the rate of decrease has
slowed down recently.
 Maintained a firm position as No. 1 in the cleansing category for three consecutive years.
DUO monthly sales trends and 6 months rolling averagefor cleansing balm shipments(Millions of yen)

3,500

Mail order/EC
Wholesale
Others#REF!
6 month rolling average for cleansing balm shipments(10,000 units)

140

3,000

120

2,500

100

2,000

80

1,500

60

1,000

40

500

20

0

0

8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7
1Q

2Q

3Q
FY2021

4Q

1Q

2Q

3Q

Cleansingcategory
No. 1 for
3 consecutive
years

Exceeded
40 million
cumulative
shipments(August 2022)

4Q

FY2022© 2022 Premier Anti-Aging Co., Ltd.

28

DUO Brand
 Increase sales of products other than balm and aim to expand sales of the DUO brand as a whole.
 Aiming for No. 1 sales of cleansing balms for four consecutive years.

Launching new products

Airing TV commercials

Accumulated brand powerand depth of subscription
customers

Driving customer experience

Purchasing behavior
performance data

Real-time behavioral
data from word-of-mouthand SNS

Aiming to increase sales for the DUO brand as a whole© 2022 Premier Anti-Aging Co., Ltd.

29

CANADEL Brand
 CANADEL maintains upward trend driven by unique new products In September, the total number of shipments exceeded 5 million. Steady growth aiming for category No. 1(Millions of yen)

800

TV
CM

CANADEL monthly sales trend

Launched Barrier
Fix

Mail order
Wholesale
Others

700

1.2

TV
CM

600

1.0

Launched Premier
Zero

500

0.8

TV
CM

400

TV
CM

0.6

300
0.4

200
0.2

100
0

8

9

10 11 12

1Q

2Q

1

2

FY2021

3
3Q

4

5

6
4Q

7

8

Three years
after launch,sales exceeded
5 billion yen(FY2022)9

10 11 12

1Q

2Q

1

2

FY2022

3
3Q

4

5

6

7

0.0

Exceeded
5 million
cumulative
shipments(September 2022)

4Q© 2022 Premier Anti-Aging Co., Ltd.

30

CANADEL Brand
 Increase presence and expand to the main target group of all-in-one.
 Aiming to be No. 1 in the all-in-one category through product and marketing strategies.

Launching refills

Introducing
highly appealing,value-added products

Improving awareness with a strong
creative presence© 2022 Premier Anti-Aging Co., Ltd.

31

clayence Brand Home hair care brand “clayence” was launched in March 2022.
 Penetrating the market at a growth speed that greatly exceeds DUO and CANADEL.
Comparison of Weekly New Acquisitions at Launch of clayence and
CANADEL
CANADEL

16,000clayence
14,00012,00010,00010,000units

Horizontal
development ofbrand developmentknow-how gained
from DUO and
CANADEL

8,000

6,000

The number of
new acquisitions
exceeded 200,000
in 4 months
after launch

4,000

0

-1W
0W
1W
2W
3W
4W
5W
6W
7W
8W
9W
10W
11W
12W
13W
14W
15W
16W
17W
18W
19W
20W
21W
22W
23W
24W
25W
26W
27W
28W
29W
30W
31W
32W
33W
34W
35W
36W
37W
38W
39W
40W
41W
42W
43W
44W
45W
46W
47W
48W
49W
50W
51W
52W
53W
54W
55W
56W
57W
58W
59W
60W
61W
62W
63W
64W
65W
66W
67W
68W
69W
70W
71W
72W
73W
74W
75W
76W
77W
78W

2,000

Pre-sale© 2022 Premier Anti-Aging Co., Ltd.

32

clayence Brand

 Implement mass marketing at an early stage and aim to further improve recognition.
 We plan to deliver to 7,000 stores in the first half and expect an increase in wholesale sales in addition
to mail order sales.

Aiming to generate sales from two channels, mail order andwholesale, with a media mix strategy© 2022 Premier Anti-Aging Co., Ltd.

33

Initiatives at Premier Wellness Science Co., Ltd.
 Aiming for product development based on scientific evidence.

 The results of joint research with Showa University and the University of Tokyo have resulted in
product development.
 Launched Ko, derived from CBD ingredients, and Reinca, derived from dental pulp stem cells.

R&D
Collaborative
research

R&I
Seeds discovery- Discovery of newmaterials andtechnologies- Safety and efficacy

Entry Areas andGroup Synergies

elucidation- Clinical trials andprototype development

Aiming to maximize
high-quality productdevelopment and businessdevelopment speed under
the common GOAL of
Business"creating the mostdevelopment
outstanding
Marketing- Business Evaluation(Product value andproducts"social contribution)- Standardization ofquality standards- Brand / Identity© 2022 Premier Anti-Aging Co., Ltd.

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Mid-term strategy
 Become the leading anti-aging company by creating numerous brands that are by far the No. 1 brand intheir categories.

Nurturing brandNo. 1 brand in the category

DUO
CANADEL
CANADELSalesclayence
Grow verticallyKo

DUO MEN

ReincaNew brands
IncubationTime© 2022 Premier Anti-Aging Co., Ltd.

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Sustainability Initiatives
 In FY2022, we undertook sustainability initiatives as part of our ESG efforts.
 To further strengthen and promote our sustainability initiatives, we established the Sustainability
Promotion Committee in August 2022.

E

・Reduce CO2 emissions
・Reduce amount of plastic used
Wooden spatulas

S・Participate in International
Women’s Day
・Improvementof employee engagement

・Established the Nomination andRemuneration Advisory Committee
・Implemented the Executive
Officer System

Provide refills

Green nano

G

International Women’s Day© 2022 Premier Anti-Aging Co., Ltd.

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05 Risk Information© 2022 Premier Anti-Aging Co., Ltd.

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Risk Information
 The major risk factors and countermeasures are listed below.
Major risk
factors*

Major Risks

Although sales of the Group's mainstay product,"The Cleansing Balm," have been growing
Dependence on
steadily, the Group's business and earnings
specific brands
could be affected by an increasingly competitiveand products
environment, changing consumer needs, or ashortage of raw material supply.
The Group is subject to legal regulations
including the "Act on Quality, Efficacy and Safety
Assurance of Drugs and Medical Devices," theRisks related to "Act on Specified Commercial Transactions," andlaws andthe "Act Against Unjustifiable Premiums andMisleading Representations.” Amendments to or
regulations
new establishment of laws and regulations may
affect the Group's business and operating
results.
In the mail-order cosmetics market in which theGroup operates, if the Group is unable to
Risks related tomaintain the competitiveness of its products due
businessto inadequate response to changes in consumer
environment
values, needs, and purchasing behavior, theGroup's business and earnings could be
adversely affected.

Occurrence
Likelihood

Low

High

Low

* Major risk factors are excerpts from the "Business and Other Risks" section of the Company's Annual Securities Report.

ImpactCountermeasures

High

We are focusing on growing sales ofother products and expanding our brandportfolio by expanding our productlineup and launching new brands. At thesame time, we are strengthening ourorganization through personnel
reinforcement.

Low

We strive to raise awareness of legal
compliance through consulting contracts
with specialized consultants,
participation in seminars hosted bythese consultants, and employee
education.

In addition to actively promoting thedevelopment of new products andpromotional measures utilizing SNS andapplications, the Company strives tomaintain the competitiveness of its
Mediumproducts by viewing communications
with customers at its call centers as anopportunity to constantly explore
potential needs and apply those needs
to product development.
© 2022 Premier Anti-Aging Co., Ltd.

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06 APPENDIX© 2022 Premier Anti-Aging Co., Ltd.

39

Brand Introduction: 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 33 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 July 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging Co., Ltd.

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Brand Introduction: 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 7 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 July 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging Co., Ltd.

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Brand Introduction: sitrana

 A cosmetics brand for sensitive skin with cica substance*1 in all products, sitrana targets the Chinese
market.

Featuring 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 July 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging Co., Ltd.

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Brand Introduction: 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 July 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging Co., Ltd.

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

•
A hair care brand inspired by a clay spa,clayence 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 5 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 July 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging Co., Ltd.

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Brand Introduction: DUO MEN With DUO MEN, we newly entered the fast-growing men’s cosmetics market by taking advantage of thehigh awareness of DUO brand.

While 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 2 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 July 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging Co., Ltd.

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Premier Wellness Science's brand : Ko

 A brand with CBD (cannabidiol) as a key ingredient, which has a wide range of usefulness in beauty andhealth.

Focusing 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 July 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging Co., Ltd.

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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 October 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging Co., Ltd.

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Disclaimers and Notes on Forecasts and Projections
 The materials and information provided in this document include forward-looking statements,
which are based on our current expectations, forecasts and assumptions involving risks. As
such, there are uncertainties that may cause actual results to practically differ from what aredescribed 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.
 We plan to disclose an update to this document in the future, approximately October after theclosing of this fiscal year.
Contact: IR Department, Corporate Communication Division
E-mail ：ir@p-antiaging.co.jp© 2022 Premier Anti-Aging Co., Ltd.

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