FY2023

December 14, 2022

1Q

Premier Anti-Aging Co., Ltd.
TSE Growth 4934
FY2023 1Q Results Briefing Material

INDEX

01

Executive Summary

02

FY2023 1Q Results

03

FY2023 Revised Plan

04

Initiatives for 2Q and Beyond

05

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

2

01 Executive Summary© 2022 Premier Anti-Aging, Co., Ltd.

3

01. Executive Summary

Executive Summary
FY2023 1Q Results
・Net sales: Although sales of CANADEL and clayence increased, sales decreased due to a decrease
in DUO mail-order/EC sales and wholesale sales.
・Operating profit/loss: Gross profit decreased due to lower sales. As a result of aggressive
investment in new customer acquisitions and TV commercials, costs were ahead.
FY2023 Revised Forecast
・First half: Sales 14,500 million yen, Operating profit 0 million yen
Full year: Sales 30,000 million yen, Operating profit 1,500 million yen
・In addition to revising the cost structure, we will implement company-wide cost reforms and invest
management resources for future growth by investing the necessary funds in existing and new
businesses.
Future Direction

・Aiming for a leaner corporate structure that can sustain profitable growth while maintaining sales
growth momentum over the medium term
・In addition to acquiring new customers by controlling CPO, focus on CX promotion to build longterm relationships with existing customers
・With transformation into an anti-aging company, move into a new business area of “inner care”
with launch of two new health food brands (SINTO, X)© 2022 Premier Anti-Aging, Co., Ltd.

4

02 FY2023 1Q Results© 2022 Premier Anti-Aging, Co., Ltd.

5

02. FY2023 1Q Results

Statement of income (quarterly comparison) Although sales of CANADEL and clayence increased, net sales decreased due to a decrease in DUO
mail-order/EC sales and wholesale sales.
 As a result of aggressive investment in new acquisitions and TV commercials, costs are ahead.
(Millions of yen)

Net sales

FY2022
1Q

FY20222Q

FY2022
3Q

FY20224Q

FY2023
1Q

9,865

8,104

7,926

8,015

7,391

(7.8%)

Ｌ Mail order/EC

6,130

6,267

5,470

6,281

5,055

(19.5％)Ｌ Wholesale

3,431

1,492

2,192

1,266

1,929

52.4％

304

344

263

467

406

(13.0％)

7,924

6,575

6,162

5,967

5,747

(3.7%)

SG&A expenses

5,849

6,401

6,453

5,510

5,991

8.7%

Ｌ Advertising

2,950

3,572

3,678

2,718

3,045

12.0%

Ｌ Outsourcing

1,498

1,516

1,384

1,388

1,248

(10.1％)

Ｌ Payroll and allowances

252

244

302

304

325

7.0％

Ｌ R&D

80

114

115

122

127

4.7％

1,067

953

972

976

1,244

27.3％

2,074

173

(290)

456

(244)

－

21.0％

2.1％

(3.7％)

5.7％(3.3％)(9.0pts)

2,132

189

(180)

430

(224)

－

1,320

39

(138)

202

(198)

－

Ｌ Others

Gross profit

Ｌ Others

Operating profit (loss)

Operating profit margin (%)
Ordinary profit (loss)

Profit (loss) attributable toowners of parent*Rate of change compared to FY2022 4Q© 2022 Premier Anti-Aging, Co., Ltd.

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02. FY2023 1Q Results

Advertising expenses
 The amount base is at the same level as the same period of the previous year, and the sales ratio greatly
exceeded the same period of the previous year but progressing according to plan
 Although overall CPO is on an upward trend, it still maintains a favorable level, and new acquisitions
centered on CANADEL and clayence are at a record highAdvertising expenses/net sales
and breakdown

140,000

Change in mail order/EC CPO and number
clayence

120,000

12,000CANADELDUO(Millions of yen)

9,865

Others
CPO

100,000

7,391

3,045

2,950
TVCM

FY2022-1Q

80,0008,000

60,0006,000

40,0004,000

20,0002,000

NewclientNew
clientAdvertising

10,000

Other
TVCM

Other

Sales

of new acquisitions

14,000

Sales

Advertising

FY2023-1Q

0

8

9
1Q

10

11

12
2Q

1

2

FY2022

3
3Q

4

5

6
4Q

7

8

9 10
1Q

0

FY2023© 2022 Premier Anti-Aging, Co., Ltd.

7

03 FY2023 Revised Plan

© 2022 Premier Anti-Aging, Co., Ltd.

8

03. FY2023 Revised Plan

FY2023 Revised Forecast Based on the results of 1Q, we revised sales to 30.0 billion yen, down 11.5% year on year, and operating
profit to 1.5 billion yen, down 37.9% year on year
 Implement company-wide cost reforms and aim for a lean corporate structure that enables sustainablegrowth with profit
Millions of yen

FY2022
ActualResults

FY2023
InitialForecast(A)

FY2023
Revised
Forecast

Increase/
Decrease(B)(B)－(A)

Rate of
Change(B)/(A)

Full year
Six months

Net sales

33,91137,00030,000(7,000)(18.9％)

Operating profit

2,414

3,000

1,500

(1,500)(50.0％)

Operating profit margin (%)

7.1%

8.1％

5.0％

(3.1pts)－

Ordinary profit

2,572

2,985

1,520

(1,465)(49.1％)

Profit attributable toowners of parent

1,424

1,820

820

(1,000)(54.9％)Net sales

17,97016,70014,500(2,200)(13.2％)

Operating profit

2,248

930

0

(930)

－

Operating profit margin (%)

12.5％

5.6％

－

－

－

Ordinary profit

2,321

930

20

(910)

(97.8％)

Profit (loss) attributable toowners of parent

1,360

550

(60)

(610)

－

© 2022 Premier Anti-Aging, Co., Ltd.

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04 Initiatives for 2Q and Beyond© 2022 Premier Anti-Aging, Co., Ltd.

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04. Initiatives for 2Q and Beyond

DUO

 As a mature brand, strengthen approaches to existing customers and aim to further improve brandvalue

1Q Topics Downward trend continues due to fading out of “DUO The
Cleansing Balm Black Repair” boom and intensified competition New product “DUO The Cleansing Balm Hot” launched in
September backed by TV commercials and other proactive
advertising investments
Challenges
 Focus on branding as a mature brandApproaching existing customers is in a more important phase

Initiatives for 2Q and beyond Implement a loyalty program for existing customers andmeasures to promote continued use Cross-sell the DUO brand to customers purchasing otherbrand products Launch limited-edition products and increase brandrecognition through TV commercials and other methods© 2022 Premier Anti-Aging, Co., Ltd.

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04. Initiatives for 2Q and Beyond

CANADEL Promote cross-selling and up-selling by developing and launcbing highly appealing and unique new
products
1Q Topics Unique new products such as the highly appealing “Premium Barrier Fix” drove sales growth Achieving high level of new customer acquisition through active investment in advertising Expand to the main target segment of the all-in-one cosmetics market through further
recognition
Challenges
 Develop highly appealing products that can respond tointensifying competition in the online advertising environment
Initiatives for 2Q and beyond Aim to expand new acquisitions by developing and introducing new products that can appeal tocustomer concerns
 Introducing unique new products that can promote upselling for existing subscription customers
 Cross-sell the CADEL brand to customers purchasing other brand products© 2022 Premier Anti-Aging, Co., Ltd.

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04. Initiatives for 2Q and Beyond

clayence

 Improve the retention rate by developing and launching new products that make use of our strength of
direct communication with customers
1Q Topics
 Maintaining a high level of new customer acquisitions, surpassing DUO and
CANADEL Expanded into retail outlets with TV commercials airing from October,completing shipment to 8,000 stores by month-end
 Sales growing in both mail order/EC and wholesale sales
Challenges
 Eliminate dissatisfaction with the feeling of use peculiar to color treatment
and improve the retention rate
Initiatives for 2Q and beyond
 Promote cross-selling and up-selling by developing and launching new
products based on customer feedback, leveraging D2C's strength ofcommunication with customers
 Enlightenment of correct usage by strengthening the contact center andenclosing leaflets on how to use Cross-sell the clayence brand to customers purchasing other brand products© 2022 Premier Anti-Aging, Co., Ltd.

13

04. Initiatives for 2Q and Beyond

Cost structure reform Maintain sales growth momentum through strategic advertising investment and review SG&A expenses
other than advertising investment
 Carry out company-wide cost structure reforms and aim for a lean corporate structureMarketing cost (1)Marketing cost (2)Implement a digital marketing strategy
that emphasizes investment efficiency
using CDP*

Be aware of target segmentation andexecute a mass marketing strategy
aimed at maximizing the media mix
effectDelivery cost

Logistics cost

Reduce costs by developing
packages with shipping costs in
mind

Optimize inventory management
and build a lean productmanagement system that matches
supply and demand

System cost
Implement optimal system
investments based on an IT granddesign that can withstand futurebusiness growth.
Aiming to streamline operations
from a medium- to long-term
perspective*CDP stands for customer data platform© 2022 Premier Anti-Aging, Co., Ltd.

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04. Initiatives for 2Q and Beyond

CX Promotion: Customer experience stages and key KPIs
 Recognizing different issues depending on the stage and extracting priority issues
 Focus on strengthening the stage related to the customer development phase in the future andimplement each measure

Current
efforts

Settlement
service
optimization

Launched in
OctoberNEW

Mobile app
introduction

New acquisition phase

Personal product proposal
using CDP

Start of Ambassador
ProgramCustomer development phase
Final goal

Stage
Cognition

Comparison/
examination

KPI

Brand awareness/
Exposure

Purchase

Number of newacquisitions/
CPO/
Number of dormant
customers
reactivatedExperience

Continue

Royalty

Conversion rate

Retention rate/
Call center
response rate

Fan degree/
Engagement

Active members/
Cross-selling rate

© 2022 Premier Anti-Aging, Co., Ltd.

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04. Initiatives for 2Q and Beyond

Transformation into an anti-aging company
 To become an anti-aging company, expand our business domain into the inner care field Aim for a comprehensive anti-aging approach to a customer base of 3.6 million

・DUO brand・CANADEL brand, others

Mail order/EC
sales

Cleansingbalm

１Skin carebusiness・clayence brand2

Anti-aging platform

Hair carebusiness

3

Inner carebusiness
・SINTO brand・X brandAreas offuturebusinessdevelopment© 2022 Premier Anti-Aging, Co., Ltd.

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04. Initiatives for 2Q and Beyond

Background of the entry into the new business“Inner Care Business”

 Of all health and beauty foods*, the market for “functional foods” designed to address a specific function grew toover 1 trillion yen in 2021. Mail-order/EC sales accounted for over 60% of sales by channel, showing high affinity
with our main channel According to a survey of our customers, 77.4% are using inner care, but about half are dissatisfied with the effects

1 trillion
yenChanges in market size of functional foods

Survey results for our customers

Yes, working on

77.4%

2014

2015

2016

2017

2018

2019

2020

2021

2022
(estimate)

Functional food sales by channel

Are you working to achieve
health and beauty from theinside of your body?
（n=1,206）

Mail order
Door-to-door

Can't feel the effect51.7%

Pharmacy
Wholesale
Mass retailor

2023 Forecast
2021

CVS
0

1,000

2,000

3,000

4,000

5,000

6,000

* Foods consumed for the purpose of maintaining/promoting/restoring health and beauty
Source: Fuji Keizai_H・B Foods Marketing Handbook 2023 No.1

7,000(100 million yen)

What kind of dissatisfaction do
you have with dietsupplements?
（n=826）*In-house research© 2022 Premier Anti-Aging, Co., Ltd.

17

04. Initiatives for 2Q and Beyond

New business “Inner Care Business”

 With a development philosophy of “respond with results”, we are launching two functional food brands.
We have applied for patents for both brands to gain objective proof of our product’s superiority
 Offering a comprehensive anti-aging approach to our 3.6 million members

Available
January 2023

・Release of two products: “SINTO Liposome
Vitamin C” with vitamin C as the main ingredient,and “SINTO Liposome NMN” based on NMN
・Improved absorption and permeability throughliposomal technology – a drug delivery system(DDS) technology adopted in medical settings
・To offer a sense of efficacy, our formulation has
industry-high levels of each useful component

Available
February 2023

・Introducing two products: “X2 BURN” for those
who want to start exercising and “X4 SLIM” forpeople wishing to improve their eating habits
・Special coating technology reduces thebitterness and smell of active ingredients while
ensuring it dissolves easily
・The first of its kind in Japan to employ amechanism that helps reduce body fat© 2022 Premier Anti-Aging, Co., Ltd.

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04. Initiatives for 2Q and Beyond

Sustainability Initiatives
 Implement proactive measures for sustainability

Sales of refills

Support for SDGs event

Sales of product refills starting with CANADEL
helping reduce plastic by approximately 70%

Formulation of a HealthManagement Declaration

Inaugural cooperation in the HAPPY EARTHFESTA – Japan’s largest SDGs Week event

2022 GP Environmental
Semi Grand Prize Winner“For lives that shine with health and beauty for all”
As an anti-aging pioneer, we will promote
initiatives that enable our employees,
their families, and people worldwide,
irrespective of age, to shine bright withhealth and beauty.

Awarded a prize for three consecutive years
through the GP certification system*, which
recognizes companies and organizations fortheir deep understanding and active applicationof the Green Printing service standards.

*The GP certification system provides certification to factories and equipment that meet our independent
environmental standards and enables printed materials made at certified factories to display the GP mark.
© 2022 Premier Anti-Aging, Co., Ltd.

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05 Appendix© 2022 Premier Anti-Aging, Co., Ltd.

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05. Appendix

Company Profile
Name

Premier Anti-Aging Co., Ltd.

Established

December 2009

Head office

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

Board
members

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

Employees

216 (as of October 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.

21

05. Appendix

Business Philosophy

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

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

© 2022 Premier Anti-Aging, Co., Ltd.

22

05. Appendix

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

2010・－ February: Started sales of cosmetic products with the launch of the DUO 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－October：Started airing the first round TV commercials for clayence (featuring actress Rei Dan)© 2022 Premier Anti-Aging, Co., Ltd.

23

05. Appendix

Balance Sheet (Comparison with the End of the Previous Fiscal Year) The ratio of non-current assets to total assets remained controlled at about 7% while asset-light
operations continue(Millions of yen)

FY2022

FY2023
1Q

Increase/decrease

Comparedwith the endof FY2022

12,30012,483182

1.5%

11,516

11,565

48

0.4%

783

917

134

17.1％

3,952

4,329

377

9.5%

3,220

3,654

434

13.5%

731

675

(56)

(7.8%)

Total net assets

8,348

8,153

(194)

(2.3%)

Total liabilities
and net assets

12,30012,483182

1.5%

Equity ratio（％）

67.9%

65.3％

－

(2.6pts)

Total assets
ＬCurrent assets
ＬNon-current assets

Total liabilities
ＬCurrent liabilities
ＬNon-current liabilities© 2022 Premier Anti-Aging, Co., Ltd.

24

05. Appendix

Net Sales by Channel

 Wholesale sales increased due to the success of media mix strategy in line with the time of shelf
replacement and retail development of clayence.
 Mail-order/EC sales declined due to DUO struggles（Millions of yen）
12,00010,000Trends in net sales by channel
Mail-order/EC sales
Wholesale sales
Others (including overseas sales)

8,000

35%

27%

6,000

18%

33%

16%
28%
26%

32%

Wholesale

25%

21%

4,000

17%

23%

22%
71%

21%

2,000

0

13%

13%

85%

85%

1Q

2Q

82%

76%

4Q

1Q

81%

75%

2Q

3Q

76%

67%

70%
64%

62%

78%

78%
68%

68%

Mail-order/EC

18%

76%

3Q

FY2019FY20204Q

1Q

2Q

FY2021

3Q

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

FY2023© 2022 Premier Anti-Aging, Co., Ltd.

25

05. Appendix

Net Sales by Major Brands

 DUO sales continued to decline due to the end of the black balm boom and intensifying competition
 Unique new products such as the highly appealing “Premier Barrier Fix” drove sales growth for
CANADELDUO quarterly sales trends（Millionsof yen）

Mail-order/EC

Wholesale

CANADEL quarterly sales trends（Millionsof yen）

Others

10,000

2,000

9,000

1,800

8,000

1,600

7,000

1,400

6,000

1,200

5,000

1,000

4,000

800

3,000

600

2,000

400

1,000

200

0

0
1Q

2Q

FY2021

3Q

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

FY2023Mail-order/EC

1Q

2Q

Wholesale

3Q

FY2021Others

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

FY2023© 2022 Premier Anti-Aging, Co., Ltd.

26

05. Appendix

Total Number of Mail-order/EC Customers
 The total number of members exceeds about 3.6 million
 Acquired record-high new customers centered on CANADEL and clayence in the first quarter of FY2023（People）

Toral number of mail-order/EC customers

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

1Q

2Q

FY2020

3Q

4Q

1Q

2Q

FY2021

3Q

4Q

1Q

2Q

3Q
FY2022

4Q

1Q
FY2023© 2022 Premier Anti-Aging, Co., Ltd.

27

05. Appendix

Number of Cross-selling Customers
 Number of customers who subscribe 2 or more products has increased, mainly in clayence
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

14.4%
9.7%
100,000
people

1Q

2Q

3Q
FY2020

4Q

1Q

2Q

3Q
FY2021

4Q

1Q

2Q

3Q
FY2022

4Q

1Q
FY2023

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.

28

05. Appendix

DUO Cleansing Balm Shipment Trends by Item

 The hot balm released in September 2022 is off to a steady start. Aiming to expand the fan base as a new
standard product Although the downward trend continued due to intensifying competition, the total number of shipments
exceeded 40 million in August. Remain solid as the No. 1 brand(10 thousands units)

400

DUO Cleansing Balm: Number of Units by Item
Original

350

Clear
White
Barrier
Black

300

Hot
Others

250

200

150

100

50

0

1Q

2Q

3Q
FY2020

4Q

1Q

2Q

3Q
FY2021

4Q

1Q

2Q

3Q
FY2022

4Q

1Q
FY2023

Note: Due to accounting processing, the timing of recording shipments and sales in sometransactions does not match.
© 2022 Premier Anti-Aging, Co., Ltd.

29

05. Appendix

Key Brands and Sales Composition Ratio Skin care brands “DUO” and “CANADEL” and hair care brand “clayence” drove sales
 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*267％

 Offering 35 SKUs*1

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

Sales composition
ratio*2

21％

HAIR CARE

 Applying brand nurturing know-how gained throughDUO and CANADEL.
 Home hair care brand that
Sales composition
focuses on young generation
ratio*2with graying hair.
 Launched March 2022.
 Offering 5 SKUs*1

11％*1: SKU refers to the number of regular products as of October 31, 2022, excluding limited editions and different sizes *2: Calculated based on FY2023 1Q net sales.

© 2022 Premier Anti-Aging, Co., Ltd.

30

05. Appendix

Situation by Brand: DUO
 The core brand since inauguration, DUO continues to drive sales as the pioneer in the cleansing balm market.

DUO is an aging care brand with the concept of“nourishing the skin from its foundation,”created under the policy of developing highly
effective products by combining naturalingredients that are kind to the skin, body andnature with advanced science based ondermatology.

We currently have 35 SKUs* centering on
cleansing balm.

Major cosmetics awards granted in the first half of 2022

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

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

31

05. Appendix

Situation by Brand: CANADEL Being fostered as the second brand following DUO, CANADEL focuses on the busy modern women’s needs
for spending less time on skin care.

Based on the concept of “continuously pursuing
beauty, being true to oneself, and enjoying life,”
CANADEL is a highly advanced aging carebrand launched in April 2019 to address thechanging skin care needs of mature consumers.
Four types of all-in-one creams and eye cream
are currently available, taking in mind thelifestyles of modern women proactively living
busy daily lives. We currently have 11 SKUs*
centering on all-in-one cosmetics.

Major cosmetics awards granted in the first half of 2022

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

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

32

05. Appendix

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

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05. Appendix

Situation by Brand: immuno
 A functional organic cosmetics brand, immuno takes SDGs into consideration and promotes sustainable
development.

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

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

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05. Appendix

Situation by Brand: clayence A home hair care brand that focuses on young generation with graying hair, clayence was developed by applying the brandnurturing 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 October 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging, Co., Ltd.

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05. Appendix

Situation by Brand: DUO men
 With DUO men, we newly entered the fast-growing men’s cosmetics market by taking advantage of the highawareness 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 4 SKUs*.

Major cosmetics awards granted in the first half of 2022

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

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

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05. Appendix

Premier Wellness Science's brand : Ko
 A brand with CBD (cannabidiol) as a key ingredient, which has a wide range of usefulness in beauty 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 October 31, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging, Co., Ltd.

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05. Appendix

Premier Wellness Science's brand : Reinca

 A skin care brand that uses a unique stem cell extract as a core ingredient created through joint research with
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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05. Appendix

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.

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05. Appendix

Domestic Market Size for Cleansing Domestic cleansing market plummeted due to disappearance of inbound demand caused by COVID-19.
 The market expanded again in 2021 as the positioning of cleansing products changes from makeup removerto skin care products.
(Billions of yen)

180

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

160

140

120

100

80

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

40

20

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

(Estimate)2023(Forecast)

2024(Forecast)

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

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05. Appendix

Domestic Market Size for Cosmetics and Skin Care

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

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

COVID-19
Outbreak

3,500

3,000

2,500

Cosmetics market
excluding skin care
CAGR: 1.08%

2,000(2013-2022)

1,500

1,000

Skin care market
CAGR: 1.50%

500

0(2013-2022)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

(Estimate)2023(Forecast)

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

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05. Appendix

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

© 2022 Premier Anti-Aging, Co., Ltd.

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05. Appendix

Environmental Initiatives
 We are actively promoting eco-conscious initiatives.
Common to all brands

CANADEL

FSC® certified packaging materials areused for all of our brands

Received the semi grand prize of "2021GP
Environmental Grand Prize”

FSC® certification is a system in which
the FSC® label is attached to wood
products produced from forests
deemed to be well-managed or otherproducts using low-risk wood, allowing
them to be sold as certified products.

DUO

We have applied green nano technology tocleansing balm products and are conducting
stability tests to investigate application toother products
Green nano technology can
reduce CO2 emissions fromburning materials byapproximately 60% by adding
green nano substances to thematerials.

The GP mark certifies thatprinting materials, manufacturing
process and all activities
undertaken by a printing
company is eco-conscious.

immunoProactive sustainability initiatives
with immuno
・Participate in the Plastics Smart Campaign
by the Ministry of the Environment by
reducing microplastic wastes
・Proactively use recycled plastics and bioplastics.
・Proactively use bagasse paper and FSC®
certified materials.
・Proactively use recycled and biodegradable materials.

© 2022 Premier Anti-Aging, Co., Ltd.

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Disclaimers and Notes on Forecasts and Projections
 The document and information provided in our results briefing include forward-looking
statements, which are based on our current expectations, forecasts and assumptions
involving risks. As such, there are uncertainties that may cause actual results to practicallydiffer from what are described in such statements.
 These risks and uncertainties include general industry and market conditions as well as
general domestic and international economic conditions such as interest rate and currency
exchange rate fluctuations.
 The Company considers cosmetics market trends to be a major risk that may materially
impact its growth and execution of business plans. However, the Company endeavors to
mitigate such risks and maintain the competitive edge of its products by actively conducting
promotions and understanding customers’ potential needs to reflect on product planning. For
other types of risks, please refer to the “Business Risks, etc.” as highlighted in our Securities
Report.
 The Company does not undertake any obligation to revise or update these forward-looking
statements included in this material even in the face of new information or future events.
Contact: IR Department, Corporate Communication Division
E-mail ：ir@p-antiaging.co.jp© 2022 Premier Anti-Aging, Co., Ltd.

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