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 12, 2024

Consolidated Financial Results
for the Fiscal Year Ended 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 for next annual general shareholders meeting:
October 29, 2024
Scheduled date for commencing dividend payments:
Scheduled date to file annual securities report:
October 30, 2024
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, 2024 (from August 1, 2023 to July 31, 2024)(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, 2024

20,359(22.9)

139-

July 31, 2023

26,400(22.1)(611)-

Note: Comprehensive income%

Millions of yen

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

Basic earnings per
share
Fiscal year ended

Diluted earnings
per share

Profit attributable toowners of parent

Ordinary profit%

Millions of yen

%

161

-

(1,483)

-

(631)

-

(733)

-

(1,484) million yen [ - %](738) million yen [ - %]Return on equity

Operating profit/
net sales

Return on assets

%

Yen

Yen

%

%

July 31, 2024

(170.10)-(21.6)

1.4

0.7

July 31, 2023

(84.17)

-

(9.2)

(5.2)

(2.3)

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

Net assets per share

Millions of yen

Millions of yen

July 31, 2024

11,002

6,124

55.7

702.33

July 31, 2023

12,135

7,609

62.7

872.60

Reference:

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

6,124 million yen
7,609 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, 2024

425

(540)

183

4,753

July 31, 2023

2,422

(900)

179

4,659

2. Cash dividends
Annual dividends per share
End of firstquarter

End ofsecondquarter

Yen
Fiscal year ended
July 31, 2023
Fiscal year ended
July 31, 2024
Fiscal year ending
July 31, 2025
(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, 2025 (from August 1, 2024 to July 31,
2025)(Percentage figures indicate year-on-year changes for full year and for six months)
Net sales
Millions of yen

Operating profit% 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, 2025

8,500 (20.2)

(150)

-

(160)

-

(160)

-

(18.35)Full year

17,500 (14.0)

150

7.9

130 (19.4)

130

-

14.91

* Notes(1) Changes in significant subsidiaries during the fiscal year (changes in specified subsidiaries resulting in change in scope of
consolidation): None
(2) 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
(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, 2024
8,720,534 shares
8,720,534 sharesii.

As of July 31, 2023
Number of treasury shares at the end of the fiscal year
As of July 31, 2024

155 sharesiii.

As of July 31, 2023
Average number of shares outstanding during the fiscal year
Fiscal year ended July 31, 2024
Fiscal year ended July 31, 2023

155 shares

8,720,379 shares
8,720,379 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended July 31, 2024 (from August 1, 2023 to July
31, 2024)(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, 2024

18,387(27.7)

(82)

-

(51)

-

(1,567)-

July 31, 2023

25,434(25.1)

(230)

-

(930)

-

(1,347)-

Basic earnings
per share
Fiscal year ended%

ProfitMillions of yen%

Millions of yen%

Diluted earnings
per share
Yen

Yen

July 31, 2024

(179.75)-

July 31, 2023

(154.51)-

Notes: Although there are dilutive shares, diluted earnings per share are not indicated due to net loss per share.

(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, 2024

9,732

5,864

60.3

672.55

July 31, 2023

11,041

7,432

67.3

852.30

Reference:

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

Yen

5,864 million yen
7,432 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(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 on the fiscal year ended July 31, 2024, (4) Future outlook” 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 have also been changed to units of millions of yen.

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 ………………….……………………………………….
(Changes in scope of consolidation or scope of equity method application)…………………………
(Changes in presentation)……………………………………………………………………………..
(Notes on going concern assumption) ………………………………………………………………..
(Note on segment information, etc.) …………………………………………………………………
(Per share information) ……………………………………………………………………………….
(Significant subsequent events) …………………………………..………………………………….

1

2
2
3
4
4
5
6
6
8
8
9
10
11
12
12
12
12
12
15
16

1. Qualitative information on the fiscal year ended July 31, 2024
(1) Consolidated financial results
In the consolidated fiscal year ended July 31, 2024 (the “current fiscal year”), the Japanese economy continued torecover at a moderate pace, although there were signs of stagnation in some areas. There have been signs of recovery
in personal consumption due to the economic recovery, but consumer sentiment remains stagnant due to factors suchas price increases exceeding wage increases. In the domestic cosmetics market, personal consumption recovered due
to increased opportunities to go out, and inbound demand increased due to the weaker yen. On the other hand, thepolarization of the domestic cosmetics market has become clear since the COVID-19 pandemic, and the low-pricemarket continued to expand.
Under such circumstances, Premier Anti-Aging Co., Ltd. (“the Company”) and its consolidated subsidiaries (“theGroup”) have been working on measures such as rebuilding the mail order business, strengthening brand management
and improving cost structure in order to establish a lean and robust corporate structure that can steadily generate profits
even in a tough business environment.
During the current fiscal year, sales of the recovery business conducted through the subsidiary Venex Co., Ltd. (“theVenex”) increased, but sales of the anti-aging business conducted by the Company decreased, resulting in overall salesof 20,359 million yen (down 22.9% year-on-year). Although gross profit decreased due to a decrease in sales in theanti-aging business, operating profit was 139 million yen (operating loss of 611 million yen in the previous fiscal year)
due to an increase in profits in the recovery business, as well as efficient management of sales expenses, mainly
advertising expenses, based on a new customer acquisition policy that emphasizes acquisition efficiency and conversion
rate in the mail order business, and efforts to optimize fixed costs such as labor costs and system expenses in line withthe scale of the business. Ordinary profit was 161 million yen (ordinary loss of 631 million yen in the previous fiscal
year) due to an increase in foreign exchange gains due to the weak yen. Loss attributable to owners of parent was 1,483
million yen (loss attributable to owners of parent of 733 million yen in the previous fiscal year) due to the recording of
impairment loss related to software in progress, contract loss, and provision of allowance for contract loss as
extraordinary losses, and the reversal of deferred tax assets and recording them as income taxes - current.
Business results by segment are as follows.
Anti-aging business(Millions of yen)

Net sales
Operating profit (loss)

Previous fiscal year
(From August 1, 2022
to July 31, 2023)
25,501

Current fiscal year
(From August 1, 2023
to July 31, 2024)
18,338

(719)

(139)

Year-on-year change(%)(28.1)-Net sales
Anti-aging business sales amounted to 18,338 million yen (down 28.1% year-on-year).
In the "DUO" brand, "The Cleansing Balm" has been ranked No. 1*¹ in cleansing sales for five consecutive years, andthe cumulative number of units shipped in the series has exceeded 50 million units as of the end of February 2024.
However, since the cleansing market as a whole continued to shift from balm formulations to oil formulations, andcompetition with low-priced balm products was intensifying, sales decreased for both mail order and wholesale sales.
In order to overcome this situation, the Company has strengthened communication to promote understanding of thebrand and product value through new TV commercials as well as utilizing events and various Social Networking
Services (SNS) by beauticians and influencers. In addition, the Company focused on measures to increase retention
rates and encourage loyal customers to continue using our services in the mail order business, while in the retail business,
the Company implemented measures to increase awareness by linking digital media and in-store promotions. However,as these measures require a certain period of time to produce sufficient effects, their impacts were still limited.
In the “CANADEL” brand, the Company continued to appeal to customers' value through posting and video distribution
using beauticians and influencers. In addition, in the mail-order business, the Company thoroughly implemented a newcustomer acquisition policy that emphasizes acquisition efficiency and subsequent conversion rates, and in the retail2business, in addition to collaborating with beauticians and influencers, the Company has implemented point campaigns
and other measures in stores to strengthen our in-store appeal. However, sales were lower than in the previous fiscal
year as the all-in-one market remained highly competitive.
Although the “clayence” brand was affected by intensifying competition in the color treatment market and persistently
high advertising costs, sales were almost in line with plan. With an emphasis on customer acquisition efficiency, theCompany was limiting new customer acquisition and focusing on improving conversion rates by strengthening CRM
measures. The Company also utilized beauticians and influencers to continue communicating with customers topromote understanding of products, including correct usage.
In addition, the inner care supplement “SINTO Liposomal Vitamin C” has increased the number of new customers
through strengthened influencer initiatives, and the high-concentration vitamin C skin care brand “C+mania” hasexpanded the number of sales stores to 6,300, both launched previous fiscal year. Both brands were performing wellthrough test marketing, but they have not been able to compensate for the decline in sales of core brands.
Operating profit (loss)
Despite efficiently utilizing sales expenses centered on advertising expenses based on a new acquisition policy thatemphasizes acquisition efficiency and conversion rate in the mail order business and optimizing fixed costs such as
personnel expenses and system expenses in line with the business scale, gross profit decreased due to lower sales,
resulting in an operating loss of 139 million yen (operating loss of 719 million yen in the previous fiscal year).
Recovery businessNet sales
Operating profit

Previous fiscal year
(From August 1, 2022
to July 31, 2023)
899

Current fiscal year
(From August 1, 2023
to July 31, 2024)
2,020

106

278

(Millions of yen)
Year-on-year change*²(%)-

Net sales
Net sales reached a record high of 2,020 million yen, driven by sales of new products such as the flagship productStandard Dry Plus and Recovery Move, which proposes a new way to rest while traveling, as well as contributions
from business collaboration with Premier Anti-Aging and strengthening of the supply chain.
Operating profit
Thanks to the increase in sales, operating profit also reached a record high of 278 million yen.

*¹ Survey on cleansing products by brand conducted by TPC Marketing Research Co., Ltd. (Survey period: April 2019
to March 2024 / Survey time: April 2024)*² As the recovery business began operations in the third quarter of the previous fiscal year, no year-on-year change
in sales and operating profit is stated.
(2) Consolidated financial position
Assets, liabilities and net assets at the end of the current fiscal year were as follows.
(Assets)
Total assets at the end of the current fiscal year decreased by 1,132 million yen from the end of the previous fiscal year
to 11,002 million yen. The main factors of increase and decrease were as follows.
Current assets decreased by 347 million yen from the end of the previous fiscal year to 8,882 million yen.
This was mainly due to a decrease of 353 million yen in accounts receivable - trade.
Non-current assets decreased by 785 million yen from the end of the previous fiscal year to 2,120 million yen. Thiswas mainly due to a decrease of 475 million yen in software in progress and a decrease of 517 million yen in deferred
tax assets.

3

(Liabilities)
Total liabilities at the end of the current fiscal year increased by 352 million yen from the end of the previous fiscal
year to 4,877 million yen. The main factors of increase and decrease were as follows.
Current liabilities increased by 742 million yen from the end of the previous fiscal year to 3,759 million yen. This was
mainly due to an increase of 440 million yen in short-term borrowings and an increase of 308 million yen in provision
for contract loss.
Non-current liabilities decreased by 390 million yen from the end of the previous fiscal year to 1,118 million yen. Thiswas mainly due to a decrease of 385 million yen in long-term borrowings.
(Net Assets)
Net assets at the end of the current fiscal year decreased by 1,484 million yen from the end of the previous fiscal year
to 6,124 million yen. This was mainly due to a decrease of 1,483 million yen in retained earnings.
As a result, the equity ratio was 55.7%.
(3) Consolidated cash flows
Cash and cash equivalents (“net cash”) at the end of the current fiscal year amounted to 4,753 million yen (increasedby 94 million 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 425 million yen (cash inflow of 2,422
million yen in the previous fiscal year). The major factors of cash inflows were a decrease of 353 million yen in tradereceivables and a decrease of 323 million yen in inventories, while the major factors of cash outflows were a loss before
income taxes of 902 million yen, a decrease of 270 million yen in accounts payable - other and a decrease of 252 million
yen in accrued consumption taxes.
(Cash flows from investing activities)
Net cash used in investing activities in the current fiscal year amounted to 540 million yen (cash outflow of 900 million
yen in the previous fiscal year). The major factor of cash inflow was proceeds from collection of lease and guarantee
deposits of 277 million yen, while the major factor of cash outflow was purchase of property, plant and equipment of
629 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities in the current fiscal year amounted to 183 million yen (cash inflow of 179
million yen in the previous fiscal year). The major factor of cash inflow was an increase of 440 million yen in shortterm borrowings, while the major factor of cash outflow was repayments of long-term borrowings of 230 million yen.
(4) Future outlook
Looking to the future, the Japanese economy is expected to recover moderately led by domestic demand, and withfavorable corporate earnings, wage increases that exceed inflation and expansion of capital investment are expected. In
addition, personal consumption is expected to recover gradually thanks to improvements in the employment and income
environment. However, there is a risk that a downturn in overseas economies, such as the continued high interest rates
in Europe and the United States and the continued stagnation of the real estate market in China, could put downward
pressure on Japan's economy, and it is necessary to pay close attention to the effects of rising prices, the situation in the
Middle East, and fluctuations in financial and capital markets. The domestic cosmetics market is also expected tocontinue its recovery trend, supported by favorable factors such as recovery from the COVID-19 pandemic, rising
wages, and recovery in inbound tourism.
Under these circumstances, in the anti-aging business, we aim to grow the business by optimizing brands, products,
and channels through collaboration between brand management and each channel.
In the brand management, we will redefine the value we deliver to customers, launch new products and brands, andimplement new communications and promotions that emphasize our brand value.
As for the channel strategy, we will promote optimal marketing and product strategies for each channel, including not
only the mail order but also the retail.
First, in the mail order channel, we will continue to thoroughly improve customer acquisition efficiency, which we have4

been working on since the previous fiscal year and will further expand CRM measures to strengthen our customer base.
In the retail channel, we will promote tie-up measures with new brand promotions to strengthen in-store appeal anddeepen ties with retailers to drive growth.
Overseas, we will closely monitor market trends and strengthen cross-border e-commerce and general trade in mainland
China, while also developing other Asia-Pacific markets. Furthermore, we will also work to develop new sales channels
domesticallyIn addition, in order to establish a lean and robust corporate structure that can steadily generate profits, we will continue
to work on controlling variable costs and optimizing fixed costs in line with our business scale during the fiscal year
ending July 2025.
In the recovery business, we will focus on expanding the business in growth markets. We will further strengthen
collaboration as the Premier Anti-Aging group and work harder on branding, digital marketing, CRM and new productdevelopment, etc., aiming to increase sales.
With these endeavors, we expect to achieve consolidated net sales of 17,500 million yen (down 14.0% year-on-year),
operating profit of 150 million yen (up 7.9% year-on-year), ordinary profit of 130 million yen (down 19.4% year-onyear) and profit attributable to owners of parent of 130 million yen (loss attributable to owners of parent of 1,483
million yen for the previous fiscal year) for the fiscal year ending July 31, 2025.
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. 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.

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

Current fiscal year

(As of July 31, 2023)(As of July 31, 2024)

AssetsCurrent assets
Cash and deposits
Accounts receivable - tradeFinished goods
Raw materials and supplies
Prepaid expense

4,670
2,080
1,464
444
306

Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Vehicles, net
Tools, furniture and fixtures, net
Land

4,760
1,727
1,112
474
251

262

556

9,229

8,882

29
1
24
0

431
1
178
-

Construction in progress

21-

Total property, plant and equipment

77

610

394
205
415
486

352
187
404
10

Intangible assets
Goodwill
Patent rights
Software
Software in progress
Other

9

44

Total intangible assets

1,511

999

Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Leasehold deposits
Other

19
11
517
729
111

10
471
105

Allowance for doubtful acconts

(73)

(77)

Total investments and other assets

1,316

510

2,905

2,120

12,135

11,002

258
568
230
26
1,171
22
164
114
53
-

204
1,008
385
26
871
23
171
81
308

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds payable
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Contract liabilities
Provision for bonuses
Provision for cotract loss
Other
Total current liabilities

6

406

677

3,016

3,759

(Millions of yen)

Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Provision for contract loss
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

7

Previous fiscal year

Current fiscal year

(As of July 31, 2023)(As of July 31, 2024)

70
1,366
34
38
1,509
4,525

43
980
34
52
6
1,118
4,877

1,351
1,351
4,888
(1)

1,351
1,351
3,404
(1)

7,590

6,106

19

17

19

17

7,609
12,135

6,124
11,002

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

Current fiscal year

(From August 1, 2022
to July 31, 2023)(From August 1, 2023
to July 31, 2024)

Net sales
Cost of sales

26,4007,157

20,3594,258

Gross profit

19,242

16,100

Selling, general and administrative expenses

19,854

15,961

Operating profit (loss)

(611)

139

Non-operating income
Interest income
Profit on currency exchange
Commission received
Miscellaneous income

1
5
17

1
35
12

Total non-operating income

25

49

18
4
20
0

22
5

Non-operating expenses
Interest expenses
Loss on currency exchange
Provision of allowance for doubtful accounts
Miscellaneous losses
Total non-operating expenses
Ordinary profit (loss)
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of shares of affiliated company
Contract loss
Provision of allowance for contract loss
Other

44

27

(631)

161

3
24
0
-

36
495
2
147
361
19

Total extraordinary losses

28

1,063

Profit (loss) before income taxes

(659)

(902)

Income taxes - current
Income taxes - deferred

543
(469)

62
518

Total income taxes

74

581

Profit (loss)(733)(1,483)

Profit (loss) attributable to owners of parent(733)(1,483)8

(Consolidated statement of comprehensive income)(Millions of yen)Previous fiscal year

Current fiscal year

(From August 1, 2022
to July 31, 2023)(From August 1, 2023
to July 31, 2024)

Profit (loss)
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income(733)(1,483)

(4)
(4)

(1)
(1)

Comprehensive income (loss)(738)(1,484)Comprehensive income (loss) attributable to
Owners of parent
Non-controlling interests

(738)
-

(1,484)-9

(3) Consolidated statement of changes in shareholders' equity
Previous fiscal year (From August 1, 2022 to July 31, 2023)(Millions of yen)
Accumulated othercomprehensive income

Shareholders' equity

Share
capitalBalance at beginning of period
Changes of items during period
Profit (loss) attributable toowners of parent
Net changes in items other thanshareholders' equity
Total changes of items during period
Balance at end of period

1,351

CapitalsurplusRetainedearnings

1,351

Treasuryshares

5,622

(1)

(733)

1,351

1,351

Total
shareholders'equityForeigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income

8,324

24

24

Total
net assets

8,348

(733)

(733)
4,888

(1)

(733)
7,590

(733)
(4)

(4)

(4)

(4)
19

(4)
19

(738)
7,609

Current fiscal year (From August 1, 2023 to July 31, 2024)(Millions of yen)
Accumulated othercomprehensive income

Shareholders' equity

Share
capitalBalance at beginning of period
Changes of items during period
Profit (loss) attributable toowners of parent
Net changes in items other thanshareholders' equity
Total changes of items during period
Balance at end of period

1,351

Capitalsurplus

1,351

Retainedearnings

4,888

Treasuryshares(1)(1,483)

1,351

1,351

(1,483)
3,404

10

Total
shareholders'equityForeigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income

7,590

19

19

(1,483)(1)(1,483)
6,106

Total
net assets

7,609(1,483)

(1)

(1)

(1)

(1)
17

(1)
17

(1,484)
6,124

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

Current fiscal year

(From August 1, 2022
to July 31, 2023)(From August 1, 2023
to July 31, 2024)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of shares of affiliated company
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for contract loss
Interest income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Decrease (increase) in prepaid expenses
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
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
Payments of insurance funds
Other
Net cash provided by (used in) investing activities

(659)
184
24
3
24
0
20
(1)
18
1,174
2,564
(223)
(435)
69
119
239
77
3,201
1
(19)
(760)

(902)
209
41
36
495
2
3
361
(1)
22
353
323
(54)
(270)
208
54
(252)
(2)
630
1
(21)
(184)

2,422

425

(1)
(27)
(751)

4
(629)
(191)

(124)

-

1
(2)
5
(1)
-

2
(0)
277
(1)
(2)

(900)

(540)

Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payments of redemption of bonds

178
500
(484)
(13)

440
(230)
(26)

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

179
(5)
1,696

183
26
94

Cash and cash equivalents at beginning of period

2,963

4,659

Cash and cash equivalents at end of period

4,659

4,753

11

(5) Notes to 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.
(Changes in presentation)(Consolidated balance sheet)"Rights to use facilities" under "intangible assets," which were stated separately in the previous fiscal year, are now
included in "other" from the current fiscal year, as their monetary significance has decreased.
(Notes on going concern assumption)
Not applicable(Segment information, etc.)[Segment information]
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, Calculation method for the amounts of sales, profit or loss, assets and other items for each reporting segment
The accounting methods for the reporting segments are in accordance with the accounting policies adopted for
preparing the consolidated financial statements.
Reporting segment profits are based on operating profit.
Internal profit and transfers between segments are based on prevailing market prices.

123. Information on the amounts of sales, profit or loss, assets and other items for each reporting segment.
I.
Previous fiscal year (From August 1, 2022 to July 31, 2023)(Millions of yen)
Reporting segment
Adjustment
Amount recorded inamount*consolidated
Anti-aging
RecoveryTotalstatement of income
businessbusiness
Sales
Sales to externalcustomers
Internal sales andtransfers between
segments

25,501899

26,400-26,400

-

-

-

-

-

Total
Segment profit (loss)

25,501
(719)

899
106

26,400(612)

026,400(611)

Segment assets
Other items
Depreciation
Amortization of
goodwill

10,642

1,492

12,135-

12,135

171
-

12
24

184
24

-

184
24

Note: The adjustment amount of 0 million yen for segment profit or loss is the elimination of intersegment transactions.
II.

Current fiscal year (From August 1, 2023 to July 31, 2024)
Reporting segment

Sales
Sales to externalcustomers
Internal sales andtransfers between
segments
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of
goodwill

Total

Adjustment
amount(Millions of yen)Amount recorded inconsolidated
statement of income

Anti-aging
business

Recoverybusiness

18,3382,020

20,359-20,359

-

-

-

-

-

18,3382,020

20,359-20,359

(139)
9,134

278
1,867

139
11,002-

139
11,002

188
-

21
41

209
41

-

209
41

4. 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 current fiscal year, the name of the reporting segment that was previously called"cosmetics manufacturing and sales business" has been changed to "anti-aging business."
Please note that segment information for the previous fiscal year has been prepared based on the revised classification.

13

[Related information]
Previous fiscal year (From August 1, 2022 to July 31, 2023)
1. Information by product and service
The information is omitted as the same information is disclosed in the segment information.
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(Millions of yen)
Name of customers
Ida Ryogokudo Co., Ltd.

Net sales
4,188

Related segments
Anti-aging businessCurrent fiscal year (From August 1, 2023 to July 31, 2024)
1. Information by product and service
The information is omitted as the same information is disclosed in the segment information.
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
Name of customers(Millions of yen)
Related segments

Net sales

Ida Ryogokudo Co., Ltd.

2,542

Anti-aging business[Information on impairment losses on non-current assets by reporting segment]
Previous fiscal year (From August 1, 2022 to July 31, 2023)(Millions of yen)Anti-aging
business
Impairment loss

Recoverybusiness
24

Other
-

Elimination
-

Total
-

24

Current fiscal year (From August 1, 2023 to July 31, 2024)
Anti-aging
business
Impairment loss

Recoverybusiness

495

Other
-

14

(Millions of yen)
Elimination
Total
-

-

495

[Information on amortization and unamortized balance of goodwill by reporting segment]
Previous fiscal year (From August 1, 2022 to July 31, 2023)
Anti-aging
business

Recoverybusiness(Millions of yen)
Elimination
Total

Other

Amortization

-

24

-

-

24

Unamortized balance

-

394

-

-

394

Current fiscal year (From August 1, 2023 to July 31, 2024)
Anti-aging
business

Recoverybusiness

Other(Millions of yen)
Total

Elimination

Amortization

-

41

-

-

41

Unamortized balance

-

352

-

-

352

[Information on gain on negative goodwill by reporting segment]
Not applicable(Per share information)
Previous fiscal year
(From August 1, 2022
to July 31, 2023)
872.60 yen

Net assets per share

Current fiscal year
(From August 1, 2023
to July 31, 2024)
702.33 yen

Basic earnings (losses) per share(84.17) yen(170.10) yen
Notes: 1. Although there are dilutive shares, diluted earnings per share are not indicated due to net losses per share.
2. The basis for calculating net assets per share is as follows.
(Millions of yen)

Total net assets
Amount deducted from total net assets
Net assets related to common shares at the end of theperiodNumber of common shares used in the calculation of net
assets per share at end of period

Previous fiscal year
(As of July 31, 2023)
7,609

Current fiscal year
(As of July 31, 2024)
6,124

-

-

7,609

6,124

8,720,379 shares

8,720,379 shares

3. The basis of calculating basic earnings (losses) per share is as follows.
Previous fiscal year
(From August 1, 2022
to July 31, 2023)(Millions of yen)
Current fiscal year
(From August 1, 2023
to July 31, 2024)(733)(1,483)

-

-

(733)

(1,483)8,720,379 shares

8,720,379 shares

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 period15

(Significant subsequent events)[Stock acquisition rights]
At the Board of Directors meeting held on September 12, 2024, it was resolved to submit a proposal regarding thedetermination of remuneration related to stock options for the Company’s directors (excluding outside directors) to the15th Ordinary General Meeting of Shareholders to be held on October 29, 2024. For details, please refer to the "Noticeconcerning (stock options (stock acquisition rights)" announced on the same day.

16