FY2024 1Q
Results Briefing Material
December 14, 2023

Premier Anti-Aging Co. Ltd

TSE Growth Market 4934

INDEX

01 ｜Executive Summary
02 ｜FY2024 1Q Results

03 ｜Performance by Segment
04 ｜FY2024 Earnings Forecast
05 ｜Sustainability
06 ｜Appendix

Copyright©2023 Premier Anti-Aging Co.,Ltd.

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01 ｜Executive Summary

Copyright©2023 Premier Anti-Aging Co.,Ltd.

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01. Executive Summary

Executive Summary【FY2024 1Q Results】✓ FY2024 1Q results showed a decline in sales and we posted an operating loss.
✓ Worsening customer acquisition landscape due to increased rival ads led to a decline in advertising investment. In
addition, operating loss improved compared to the previous quarter as we did not record a large-scale write-down ofaccumulated inventory that was carried out in the previous fiscal year.
【FY2024 Full-year Forecast】✓ No change to initial FY2024 earnings forecast.
✓ Focused on medium-term management plan to reassess enterprise strengths, advance structural reforms, andprepare for a return to growth.
【Segment Disclosure】✓ Segment-based information disclosed from this quarter. As performance evaluations are conducted for eachconsolidated subsidiary, we identify these as individual business segments.
（Anti-aging business）
Premier Anti-Aging leads the production and sales of skin care, hair care and inner care products, including
the DUO, CANADEL, and clayence brands.
（Recovery business）
Mainly comprises the production and sales of recovery wear by consolidated subsidiary Venex Co., Ltd.

Copyright©2023 Premier Anti-Aging Co.,Ltd.

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02 ｜FY2024 1Q Results

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02. FY2024 1Q Results

Statement of income✓ DUO and CANADEL still face a tough market; sales lower than same period last year and the previous period✓ Operating loss improved from previous period because we did not record a large-scale write-down of accumulated inventory
that was carried out in the previous fiscal year and suppressed ad spending（Millions of yen）

FY2023
1Q
Net sales

FY20232Q

FY2023
3Q

FY20234Q

FY20241Q% changecompared toprevious period

7,391

6,867

6,351

5,790

5,264

(9.1%)

Mail order/EC

5,055

5,261

4,122

3,876

3,543

(8.6%)

Wholesale

1,929

1,172

1,586

952

1,044

9.6%

Others

406

432

642

961

677

(29.6%)

Gross profit

5,747

5,421

4,516

3,557

4,194

17.9%

SG&A Expenses

5,991

5,068

4,582

4,212

4,230

0.4%

Advertising expenses

3,045

2,430

1,809

1,313

1,632

24.3%

Outsourcing

1,248

1,252

1,205

1,169

1,032

(11.7%)

Payroll and allowances

325

293

430

393

428

8.8%

R&D

127

102

146

212

110

(48.2%)

Others

1,244

988

954

1,078

1,026

(4.9%)

Operating profit (loss)

(244)

353

(66)

(654)

(35)

－

Operating profit margin (%)(3.3%)

5.1%(1.0%)(11.3%)(0.7%)

10.6pts

Ordinary profit (loss)

(224)

320

(51)

(674)

(26)

－

Profit (loss) attributable toowners of parent

(198)

172

(127)

(580)

(35)

－

Copyright©2023 Premier Anti-Aging Co.,Ltd.

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02. FY2024 1Q Results

Advertising expenses✓ Ad spending as a ratio of net sales fell from 41.2% FY2023 1Q to 31.0% but rose from the previous period.
✓ Increase in rivals’ ads damaged customer acquisitions and raised CPO. Suppressed ad spending meant sluggish
acquisitions.
CPO for mail order/EC and number of
new customer acquisitions

Breakdown of advertising expenses
cf. QonQ ad expenses to net sales
FY2023 4Q）22.7％ ➡ FY2024 1Q）31.0％✓ Ad expenses/net sales

41.2％ ➡ 31.0％✓ New acquisition spending/net sales

29.5％ ➡ 14.2％

clayence
CANADELDUO
OthersCPO（Millions of yen）

3,045
OthersNewacquisition

TVCM

FY2023 1Q

1,632
Others
TVCM
New
acquisition

FY2024 1Q

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
1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

FY2024

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02. FY2024 1Q Results

Balance sheet✓ Drastically condensed inventory by the end of last fiscal year; continued low levels.
✓ Maintaining financial health.
（Millions of yen）

FY20234Q

FY2024
1Q

Increase/(decrease)

PercentagechangeTotal assets

12,135

12,908773

6.4%

Current assets

9,229

9,936

706

7.7%

Inventories

1,909

1,823

(86)

(4.5%)

Non-current assets

2,905

2,971

66

2.3%

Total liabilities

4,525

5,335

809

17.9%

Current liabilities

3,016

3,905

889

29.5%

Non-current liabilities

1,509

1,429

(79)

(5.3%)

Total net assets

7,609

7,573

(36)

(0.5%)

Total liabilities and net assets

12,135

12,908773

6.4%

Equity ratio (%)

62.7%

58.7%

－

(4.0pts)＊Inventories = finished products + raw materials and supplies

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03 ｜Performance by Segment

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03. Performance by Segment

Anti-aging business✓ Net sales below same period last year as DUO and CANADEL continue to struggle.
✓ Despite gross profit falling due to declines in sales, operating loss improved from same period last year with the
suppression of ad spending in a worsening customer acquisition landscape linked to increased rival ads.

（Millions of yen）

FY2023
1Q
Net sales

FY2024
1Q

Increase/(decrease)

Percentagechange

7,391

4,924

(2,467)(33.4%)

Mail order/EC

5,055

3,543

(1,512)(29.9%)

Wholesale

1,929

1,044

(885)

(45.9%)

406

336

(70)

(17.3%)

Operating profit (loss)

(244)

(53)

191

－

Operating profit margin (%)(3.3%)(1.1%)－

2.2ptsOthersCopyright©2023 Premier Anti-Aging Co.,Ltd.

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03. Performance by Segment

Anti-aging business (DUO)✓ Continuing shift from balms to oil-based products and outflow to low-price alternatives causing ongoing sales decline.
✓ Aim for an about-turn in sales with communications to improve understanding of the DUO brand and product value throughnew TV commercial and social media.

Topics✓ Actively develop communications utilizing beauticians
and influencers to improve understanding of products.

Quarterly net sales of DUO（Millions of yen）

Mail order/EC

Wholesale

Other

10,000✓ DUO opened on November 3 at Mitsui Outlet Park
Kurashiki – our second outlet store.

9,000✓ Engaged Yuko Araki as our new brand ambassador
and released a new TV commercial in November.

7,000

8,000

6,000
5,000
4,000
3,000
2,000
1,000

0
1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

FY2024

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03. Performance by Segment

Anti-aging business (CANADEL)✓ Rival skin care products placed more ads, creating an unfavorable ad environment; net sales below same period last year.
✓ New TV commercial focuses on product efficacy and continues with unique position as an “all-in-one that works.”

Topics✓ New commercial with existing brand ambassador Michiko
Kichise on air from late October.

Quarterly net sales of CANADEL（Millions of yen）

Mail order/EC

Wholesale

1Q

4Q

Other

2,000

✓ Aiming to increase new customer acquisition by strengthening
digital marketing in conjunction with new commercial.

1,800✓ In retail, implemented sales campaigns linked to payment
methods participated in by main clients.

1,400✓ Proposals for store displays and promotions timed with the
new commercial launch.

1,000

1,600

1,200

800
600
400
200
0
2Q

3Q

FY2021

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

FY2024

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03. Performance by Segment

Anti-aging business (clayence)✓ clayence sales declined from FY2023 1Q but rose compared to the previous period.
✓ New foaming grey hair color treatment (quasi-drug product) posting good results; we aim to expand the scale going forward.

Topics✓ Stockists up by 2,000 stores to a total of 10,000 stores.
✓ Test marketing yielding a good response to “Clay Spa Quick
Color” (quasi-drug product), so we will expand the scale going
forward.
✓ Continue to engage Rei Dan as our brand ambassador in a new
TV commercial launched in November.
✓ Shampoo and conditioner in the scalp care series have beenhighly rated by beauty experts and selected for best cosmetics
awards in multiple prestigious beauty magazines.

Major cosmetics awards granted for the scalp care series
VOCE January issue
Best cosmetics for the second half of 2023
Skin Care Shampoo & Conditioner category
First place

MAQUIA January issue✓ Continue to strengthen CRM measures to increase conversion
and cross-selling rates and work to evolve into a total hair carebrand to address all kinds of hair troubles.

Best cosmetics for the second half of 2023
Shampoo & Conditioner category
First place

Biteki GRAND winter issue
Best cosmetics of the year
Hair care category
First place
Copyright©2023 Premier Anti-Aging Co.,Ltd.

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03. Performance by Segment

Anti-aging business (new brands)✓ Launched new products for test marketing in rapid growth categories: skin care for men, inner care, skin care containing
highly concentrated vitamin C, and skin care with our proprietary stem cell extract as the core ingredient.

Topics✓ SINTO Vitamin C performing well in test marketing, so we plan to expand the scale of the brand.
✓ A permanent Reinca counter will open at the end of January 2024 within the Beauty Apothecary of the
Isetan Shinjuku Store (Main Building, B2 floor).
Inner care

Skin care

For men

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03. Performance by Segment

Recovery business (Venex)✓ Increased sales and profit demonstrate synergistic effects with Premier Anti-Aging.

✓ Recorded operating profit one year from acquisition even after deducting the amortization of goodwill and patent rights
associated with the acquisition.

（Millions of yen）

FY2023
1Q

FY2024
1Q

Increase/(decrease)

PercentagechangeNet sales

－

340

－

－

Operating profit

－

15

－

－

Operating profit margin（％）

－

4.5%

－

－

*Same period last year not recorded as it was prior to the acquisition of Venex Co., Ltd.

Copyright©2023 Premier Anti-Aging Co.,Ltd.

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03. Performance by Segment

Recovery business (Venex)✓ Commenced sales of Recharge+ clothing for home use to improve circulation using far-infrared rays (classified as
general medical equipment; completed formal notification process for production and sales of medical equipment).
✓ Strengthen supply chain management and establish system for increased production.

Topics✓ Steadily achieving group synergies in marketing and new
product development and starting development in new
domains.
✓ Joined “Postpartum Recovery Project” to support
mothers after childbirth and started selling postpartum
recovery gift items.
✓ Signed new and renewed contracts with many top
athletes, teams and sports associations.

Postpartum recovery gifts【New contracts】• Softball gold medalists Mana Atsumi and Yukiyo Mine
• J.League professional soccer players Jung Sung-Ryong and Hajime
Hosogai• JAPAN BASE Fukuoka operated by Japan Rugby Football Union• B.League team Toyama Grouses

JAPAN BASE Fukuoka

Venex Ambassador Yuri Yasui wearing
the Recharge+ series

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04 ｜ FY2024 Earnings Forecast

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04. FY2024 Earnings Forecast

FY2024 Earnings forecast✓ No change to initial plan.
✓ Focus on reassessing enterprise strengths, advancing structural reforms, and preparing for a return to growth.
（Millions of yen）

FY2023
ActualFull year

Net sales

Increase/(decrease)

Percentagechange26,40026,000(400)(1.5%)

Operating profit (loss)

(611)

100

711

－

Operating profit margin（％）(2.3%)

0.4%－

2.7ptsOrdinary profit (loss)

(631)

100

731

－

Profit (loss) attributable to owners of parent

(733)

200

933

－

14,25811,800(2,458)(17.2%)

Operating profit (loss)

109

(800)

(909)

－

Operating profit margin（％）

0.8%(6.8%)－(7.6%)

Ordinary profit (loss)

95

(800)

(895)

－

Quarterly profit (loss) attributable to ownersof parent

(26)

(500)

(474)

－

Net sales
Half year

FY2024
Forecast

Copyright©2023 Premier Anti-Aging Co.,Ltd.

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05 ｜Sustainability

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05. Sustainability

Sustainability initiatives✓ Based on “2024-2027+Beyond”, the medium-term management plan announced in September 2023, we set goals forthe materiality issues identified and have implemented specific initiatives to work toward our goals.
Awarded for 4 consecutive years by the
GP certification system✓ Recognized for contributions tothe spread and expansion of the
GP certification system* andawarded the 2023 GP
Environmental Special Grand
Prize. Received awards every
year since 2020.

Developing strategic leaders✓ Commenced overhaul of the
training system. Started within-house planned training for
managers to examine
leadership aimed atstrengthening a team’s impact.

* The GP certification system provides certification to factories and equipment thatmeet independent environmental standards and enables printed materials made atcertified factories to display the GP mark.

Cosme Bank Project Support✓ Ongoing participation in the
Cosme Bank Project by
supplying cosmetics to people
who cannot afford to them.
Employees were invited tocollaborate from this term.

Tokyo Weekdays Basketball League
Sponsorship✓ A competition aimed at making
progress on SDGs to “ensure
healthy lives and promote wellbeing for all” and “achieve
gender equality.” This year
again, we sponsored products
as part of our initiative topromote health management.
Copyright©2023 Premier Anti-Aging Co.,Ltd.

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06 ｜Appendix

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06. Appendix

Company Profile
Name

Premier Anti-Aging Co., Ltd.

Established

December 2009

Head office

Toranomon Hills Station Tower 34F, 2-6-1 Toranomon, Minato-ku, Tokyo

Board
members

Kiyoshi Matsuura, President
Yoichiro Ito, Director and Managing Executive Officer, CFO
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
Takahiro Toya, Executive Officer
Keigo Uemura, Executive Officer
Kiyoshi Iwakawa, Executive Officer
Yuka Uehara, Executive Officer

Consolidated
number of
employees

246 (as of October 31, 2023)

Line ofbusiness

Planning, development, import/export, mail-order/EC, wholesale
and retail business of cosmetics, health food products and recovery wearGroupcompanies

Premier Anti-Aging (Shanghai) Co., Ltd.
Venex Co., Ltd.

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06. Appendix

Corporate Identity✓ In formulating our medium-term management plan, we redefine our slogan, purpose, and promise

SloganPurpose

Corporate Logo

PromiseCopyright©2023 Premier Anti-Aging Co.,Ltd.

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06. 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
2019

●

- July:Relocated the head office to Roppongi Hills Keyakizaka Terrace●- 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- March：Relocated the head office to Toranomon Hills Mori Tower

2020

2021
2022
2023

●

- September ：Launched “sitrana,” a new brand for sensitive skin

- October：

Listed on the Tokyo Stock Exchange Mothers market- December：

Established Premier Wellness Science Co., Ltd.

●- February：

Established Premier Anti-Aging (Shanghai) Co., Ltd.

●

- 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- January：

Launched the “SINTO” inner care brand- January：

Venex Co., Ltd. became a consolidated subsidiary- February：

Launched the “X” inner care brand- August：

Launched vitamin skin care brand “C+mania” brand- November：

Merger with Premier Wellness Science Co., Ltd.

- November：

Relocated the head office to Toranomon Hills Station Tower●

Copyright©2023 Premier Anti-Aging Co.,Ltd.

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06. Appendix

Key Brands and Sales Composition Ratio✓ Skin care brands “DUO” and “CANADEL” and hair care brand “clayence” drove sales

Skin care✓✓✓

Main brand since ourfounding. Has driven sales
for our company as apioneer in the cleansing
Salesbalm market.
composition
Launched February 2010.
ratio*2
Offering 29 SKUs*1

65％

Hair care✓✓✓

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

✓
✓
Sales
composition
ratio*2

18％✓✓

Applying brand nurturing know-how
gained through DUO and CANADEL.
Home hair care brand thatSales
focuses on young
composition
generation with graying
ratio*2
hair.
Launched March 2022.
％
Offering 12 SKUs*1

9*1: SKU refers to the number of regular products as of October 31, 2023, excluding limited editions and different sizes *2: Calculated based on FY2024 1Q net sales.

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06. Appendix

Net sales by channel✓ Our mainstay mail order/EC sales, which we have been engaged in since our founding, account for approximately
67% of sales in 1Q of FY2024✓ Wholesale sales, which are responsible for sales to retail stores such as variety shops, account for approximately
20% of sales. Number of delivery stores expanded to approximately 18,000 stores(Millions of yen)

Mail order/EC

12,000Wholesale

Others (including overseas subsidiary)
10,000

8,000

35%
25%
27%

6,000

18%

33%

16%
28%
26%

32%

17%

21%
18%

4,000

17%

16%

22%
71%

21%

2,000

13%

13%

85%

85%

1Q

2Q

25%

23%

82%

76%

4Q

1Q

81%

75%

2Q

3Q

76%

67%

70%

62%

78%

78%
68%

64%

20%

68%

77%
65%

67%

3Q

4Q

67%

76%

0
3Q

FY2019FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY20224Q

1Q

2Q

FY2023

1Q

FY2024

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06. Appendix

Total Number of Mail-order/EC Customers✓ The number of members supporting the subscription sales model has steadily increased, with the total
number of members exceeding 3.8 million(People)4,500,000
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

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

FY2024
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06. Appendix

Number of cross-selling customers✓ Cross-selling rate remained steady due to aggressive CX promotion

Number of customers who subscribe to two or more products and the relevant ratio
Number of customers who subscribe to two or more products
Ratio of customers who subscribe two or more products

13.8%

9.7%

100,000
people

1Q

2Q

3Q
FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q
FY2022

4Q

1Q

2Q

3Q
FY2023

4Q

1Q
FY2024

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

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06. 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 skinfrom its foundation,” created under the policy of developing highly
effective products by combining natural ingredients that are kind to
the skin, body and nature with advanced science based ondermatology.

We currently have 29 SKUs* centering on cleansing balm.

Major cosmetics awards granted in the first half of 2023

MAQUIA
September issue
Everyone's Best Cosmetics
2023 first half
Just dropping it is not enough!
Cleansing category
First place

upPLUS July issue
Cosmetics recommended bybeauty connoisseur STAFF &discerning buyers
Skin care category cleansing
First place+5 more awards*The SKU figure refers to the number of regular products as of October 31, 2023, excluding limited items and different sizes.

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06. 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
care brand launched in April 2019 to address the changing skincare needs of mature consumers. Four types of all-in-one creams
and eye cream are currently available, taking in mind the lifestyles
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 2023

ESSE July issue

LEE August issue

Beauty Trend Award 2023
Gel/Oil Department

LEE Best Cosmetics 2023 First
Half
Positive Aging Award+3 more awards*The SKU figure refers to the number of regular products as of October 31, 2023, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: sitrana✓ A cosmetics brand for sensitive skin with cica substance* in all products

Featuring a unique anti-pollution capability, the sitrana
products protect the skin from dryness that causes skinirritation and such external stimuli as air pollution anddirt/grime. The cica substances* under our original blending
help fix the damaged skin and facilitate users to attain theirideal skin.
*Cica substances refers to the substance extracted from a plant called Centella asiatica.

Major cosmetics awards granted in 2022

MAQUIA September Issue

BAILA August issue

Everyone's Best Cosmetics
Maquia Influencers
BEST COSMETICSBest Cosmetics Grand Prize
for Working 30s
in the first half of 2022
Skin Care Category Award+4 more awards
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06. Appendix

Situation by Brand: 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 wascreated by combining the power of clay and cutting-edge
science to provide hair and scalp treatment while coloringgray hair. With calming aroma on top of carefully selectedclay and beauty substances, the product transforms tedioushair care into luxurious time at the spa.
We currently have 12 SKUs*.

Major cosmetics awards granted in the first half of 2023

LEE August issue

an・an No. 2337

LEE Best Cosmetics
2023 first half
Beauty sage’s beloved
cosmetics category
Hair careannouncement! Spring 2023
an・an Mote Cosmetics Award
Hair care categoryAward for lasting beautiful
color without dryness+1 more award*The SKU figure refers to the number of regular products as of October 31, 2023, excluding limited items and different sizes.

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06. 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 brandWhile staying true to DUO’s brand concept of “Beauty is reborn
from skin care,” we took a close look at skin problems anddamage specific for men from the viewpoint of ecological andbiological science. 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 5 SKUs*.

Major cosmetics awards granted in the first half of 2023

Fine March issue

FINEBOYS August issue

Attract men with your appearance
5th Fine Men's Beauty Award!
Sunscreen category
First place

17th FINEBOYS
Men's Beauty Award
Facial cleanser category
First place+1 more award*The SKU figure refers to the number of regular products as of October 31, 2023, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: SINTO/X✓ Developing two inner care brands based on the development philosophy of “response with results”

Based on the idea that bodily sensations are the essence of supplements, we

Aiming to support the creation of an ideal body, it was born under the lead of aadopted the same DDS technology as in the medical field. Thoroughly sticking

food health instructor certified by the Japan Health and Nutrition Foodto the "experience" of the ingredients, we aim to renew the relationship

Association. We propose optimal supplements (functional foods) that match thebetween the body and the ingredients from the area of "penetration". It is a

two styles of “those who want to incorporate exercise” and “those who want tohealth care supplement for adults who enjoy aging that pursues a highimprove their eating habits” to support body fat reduction.

experience with a high amount of compounding (high compounding) and highWe currently have 2 SKUs*.

absorption and high penetration type (liposomes).
We currently have 2 SKUs*.

Major cosmetics awards
granted in the first half of 2023

MORE August issue

MAQUIA August issue

MORE Best Cosmetics
Inner care category
for the first half of 2023
First place

MAQUIA Best Cosmetics
Inner care category
for the first half of 2023
2nd place+9 more awards*The SKU figure refers to the number of regular products as of October 31, 2023, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: C+mania✓ A high-concentration vitamin skin care brand for “consumers with high beauty information literacy” whopursue reliable effects

An “aggressive” vitamin skin care brand that focuses onhigh purity, high penetration, and high concentration, withcarefully selected vitamin C from over 70 types and add
α that enhances C.
Based on the concept of "enjoying vitamin C for
maniacs", we aim to propose skin care products withhigh immediate effect in order to maximize the power ofvitamin C.
We currently have 3 SKUs*.

*The SKU figure refers to the number of regular products as of October 31, 2023, excluding limited items and different sizes.

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06. Appendix

Situation by 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 sourceof skin and sensibility with the power of SKIN &SENSE science,” we advocate skin cell care bornfrom advanced skin research and care for the fivesenses 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 successfully commercialized
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, 2023, excluding limited items and different sizes.

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06. Appendix

Situation by Brand : Ko
✓ A brand with CBD (cannabidiol) as a key ingredient, which has a wide range of usefulness in beauty andhealthFocusing on the human endocannabinoid system(ECS) and circadian rhythm. The key ingredient CBD(cannabidiol) supports daily rhythms and helps
maintain a healthy mind and body. To ensure thesafety and transparency of CBD raw materials, wehave introduced a traceability system that allows
inspection, identification, and tracking 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, 2023, excluding limited items and different sizes.

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06. Appendix

Situation by Brand: VENEX✓ As a pioneer in the recovery field, Venex has developed products using fabrics made with its uniquepatented technology

Based on the concept of "maximizing the self-healing

power that humans have," we propose clothing forrecovery. With our proprietary special fiber "PHT
(Platinum Harmonized Technology)" and a noncompression design that does not constrict the body, it
supports high-quality recovery just by wearing it.

We currently have 82 SKUs*.

*The SKU figure refers to the number of regular products as of October 31, 2023, excluding limited items and different sizes.

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06. Appendix

Market Size of the Domestic Cosmetics Market✓ The domestic cleansing market, which includes balms, totaled 137.6 billion yen in 2022
Cosmetics

Supplements
H/B foods market(functional foods)
1,065.1 billion yen*

MakeupSkin care
Face wash

Cleansing

PowderBalm

Foam

Makeup

Solid soap

Cosmetics market
2,931.0 billion yen(of which the
men’s market is159.3 billion yen)
Skin care market
1,307.7 billion yen

Toner
Moisturizer

Cleansing market
137.6 billion yen

Hair care
Shampoo

Face wash market
126.0 billion yen

All-in-one

Conditionaer
Scalp care
Hair care/hair makeup
market 662.0
billion yen

Color treatment

Moisturizing
Whitening
UV whitenoning
Emulsion

BoosterWhitening
Moisturizing

All-in-one market
135.6 billion yen

Essence

Note: Gray circles indicate the markets, and red boxes represents our products.
Source: "Cosmetics Marketing Handbook 2023 No. 1", "Cosmetics Marketing Handbook 2023 No. 3", "H/B Foods Marketing Handbook 2023 <Overview>"
by Fuji Keizai*H/B foods markets are estimates for 2022

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06. Appendix

Domestic Market Size for Cosmetics and Skin Care
✓ Domestic cosmetics market, which continued to grow moderately through 2019, declined significantly with COVID-19✓ Moderate recovery continues in 2023 due to the reduction of COVID-19 to a Category 5 infectious disease
Trends in the domestic market sizefor cosmetics and skin care(100 million yen)

35,000COVID-19
OutbreakSkin care
Cosmetics market excluding skin care

30,00025,000Cosmetics market excluding skin care
CAGR 1.41%

20,000(2015-2023)

15,00010,000Skin care market
CAGR 0.88%

5,000(2015-2023)

0
2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

(Estimate)(Forecast)(Forecast)

Source: “Cosmetics Marketing Handbook 2023 No. 3” by Fuji Keizai
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06. 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 productsTrends in the domestic market size for cleansing

COVID-19
Outbreak

100 million yen 1,600

1,400

1,200
1,000

800

120.7 billion yen →147.5 billion yen
22％UP（2014-2019）

600

128.2 billion yen →140.2 billion yen
9%UP（2020-2023）

400
200
0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

(Estimate)(Forecast)(Forecast)

Source: “Cosmetics Marketing Handbook 2023 No. 1” by Fuji Keizai

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06. Appendix

Domestic Market Size for All-in-one Cosmetics✓ A product that promotes the ability to complete skin care after washing face with just one item
✓ Market is expanding slowly
Trends in the domestic market size for all-in-one cosmetics(100 million yen)

1,400

1,380

1,360

1,340

131.2 billion yen →138.0 billion yen
5%UP（2020-2023）

1,320

1,300

1,280

1,260
2020

2021

Source: “Cosmetics Marketing Handbook 2023 No. 1” by Fuji Keizai

2022

2023
(Estimate)
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06. Appendix

Domestic Market Size for Hair Color and Female Scalp Care
✓ The hair color market remains strong from 2022 onwards, with the entry of highly convenient color
treatments for gray hair
✓ The female scalp care market has expanded rapidly since the COVID-19 outbreak due to increased time athome and heightened awareness of scalp care
Trends in the domestic market size for hair color

Trend in the domestic market size for female scalp care(100 million yen)(100 million yen)

700

2,000
1,800

600

1,600
500

1,400
1,200

400

1,000

300

800

148.2 billion yen →166.1billion yen
12％UP（2020-2023）

600
400

32.0 billion yen → 56.2 billion yen
76％UP（2020-2023）

200
100

200
0

0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

(Estimate)(Forecast)(Forecast)

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

(Estimate)(Forecast)(Forecast)
Source: “Cosmetics Marketing Handbook 2023 No. 2” by Fuji Keizai

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06. Appendix

Domestic Market Size for Functional Food and Recovery Wear
✓ The functional food market has been performing well due to increasing demand for health since the COVID-19
outbreak✓ The recovery market is expected to grow approximately 3.6 times from 2019, and the rest solution (clothing) is
expected to grow approximately 6.5 times
Trends in the domestic market size for functional foodDomestic market size for recovery wear

(100 million yen)

12,000Total recovery market

3.9 ⇒ 14.1trillion yen

10,000（2019）

8,000（2030）

6,000

Recovery market (clothing)
86.7 ⇒ 564.2 billion yen

4,000

1.0075 trillion yen→1.0882 trillion yen
8％UP（2020-2023）

2,000

0
2014

2015

2016

2017

2018

2019

2020

Source: “H/B Foods Marketing Handbook 2023 <Overview>" by Fuji Keizai

2021

2022

2023

(Estimate) (Forecast)＊Rest Week Promotion Secretariat: "In collaboration with the Kanagawa Prefecture Meibyou Industry ResearchGroup, we estimate the market size of the three elements of health, ``recovery,'' for the first time in Japan.
The recovery market in 2030 will be worth 14.1 trillion yen."

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06. Appendix

Brand Share for Cleansing (Balm type) and All-in-one Cosmetics✓ Established a competitive position with cleansing (balm type) by DUO and all-in-one by CANADEL
Cleansing (Balm type)
Premier AntiAging

All-in-one

70.5%

A

16.7%

A

4.7%

B

B

3.8%

C

5.3%

C

3.3%

D

5.2%

D

2.2%

E

4.5%

E

2.1%

Premier AntiAging

4.3%

F

1.7%

F

G

1.2%

G

2.3%

H

1.1%

H

2.3%

I

1.0%

I

2.2%

Source: “Cosmetics Marketing Handbook 2023 No. 1” Cleansing <Balm: Brand Share> 2022 by Fuji Keizai

7.6%

3.5%

Source: “Cosmetics Marketing Handbook 2023 No. 1” Moisture <All-in-one: Brand Share> 2022 by Fuji Keizai

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06. Appendix

Basic Sustainability Policy✓ In April 2023, we established the "Basic Sustainability Policy," which describes our group's basic approach tosustainability～Enabling unique pathways through life～
Untether time.
As humanity approaches the era of 100-year live spans,
we aim to create a world where every individual canpursue new challenges with confidence and curiosity,
free from preconceived notions of age and gender.
Working together with our stakeholders, we will thinkoutside the square to provide unique value that canchange the world, addressing social issues for a brighter,sustainable future.
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06. Appendix

Materiality and Goals✓ Identified five materiality as themes that should be prioritized to improve corporate value and set initiatives andtargets

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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 practically differ from what are described in suchstatements.
✓ These risks and uncertainties include general industry and market conditions as well as generaldomestic 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 andmaintain 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.

Contact: Corporate Communication Division
E-mail ：ir@p-antiaging.co.jp

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