Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

March 14, 2023

Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending July 31, 2023
(Under Japanese GAAP)

Company name: Premier Anti-Aging Co., Ltd.
Listing exchange: Tokyo Stock Exchange
Securities code:
4934
URL:
https://www.p-antiaging.co.jp/en
Representative:
Kiyoshi Matsuura, President
Inquiries:
Yuka Uehara, Head of Corporate Communication Division and Executive Officer
Phone:+81-3-3502-2020
Scheduled date to file quarterly securities report:
March 14, 2023
Scheduled date for commencing dividend payments:
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen, unless otherwise noted)

1. Consolidated financial results for the first six months of the fiscal year ending July 31, 2023 (from August 1,
2022 to January 31, 2023)(1) Consolidated operating results (cumulative)
Net sales(Percentage figures indicate year-on-year changes)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Six months ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

January 31, 2023

14,258(20.6)

109(95.1)

95(95.9)(26)-

January 31, 2022

17,970

17.4

2,248

(8.7)

2,321

(5.4)

1,360

(13.5)

Note: Comprehensive income

Six months ended January 31, 2023:
Six months ended January 31, 2022:

Basic earnings per share
Six months ended

Yen

January 31, 2023

(2.98)%(38) million yen [- %]1,370 million yen [ (12.8) %]Diluted earnings
per share
Yen-

January 31, 2022
156.01155.77
Note: Although there are dilutive shares, diluted earnings per share for the six months ended January 31, 2023 is not indicated due
to net loss per share for the six months ended January 31, 2023.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Millions of yen

Millions of yen

January 31, 2023

13,726

8,309

60.5

July 31, 2022

12,300

8,348

67.9

Reference:

Total shareholders’ equity
As of January 31, 2023:
As of July 31, 2022:

8,309 million yen
8,348 million yen%

2. Cash dividends
Annual dividends per share

Fiscal year ended
July 31, 2022
Fiscal year ending
July 31, 2023

End of first quarterEnd of second quarterEnd of third quarter

Yen

Yen

Yen

-

0.00

-

0.00

Fiscal year ending
July 31, 2023
(Forecast)Fiscal year-end

Total

Yen

Yen

-

0.00

0.00

-

0.00

0.00

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

3. Consolidated earnings forecasts for the fiscal year ending July 31, 2023 (from August 1, 2022 to July 31,
2023)(Percentage figures indicate year-on-year changes)
Net sales
Millions of yen

Operating profit% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen

Full year
30,000 (11.5)
1,500 (37.9)
Note: Revisions to the most recently announced earnings forecast: None

% Millions of yen

1,520 (40.9)

Basic earnings
per share%Yen

820 (42.2)

94.03* Notes(1) Changes in significant subsidiaries during the current period (changes in specified subsidiaries resulting in change in scope of
consolidation): None
(Note) Venex Co., Ltd., whose shares were acquired on January 31, 2023, has been included in the scope of consolidation from thesecond quarter of the current fiscal year, although it does not fall under the category of change in specified subsidiary.
(2) Adoption of accounting treatments specific to the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatementsi.
Changes in accounting policies due to revisions to accounting standards, etc.: Yesii.
Changes in accounting policies other than those in i. above: Noneiii.
Changes in accounting estimates: Noneiv.
Restatements: None
(Note) For details, please refer to "2. Quarterly consolidated financial statements and major notes (4) Notes to quarterly
consolidated financial statements (Changes in accounting policies)" on page 8 of the attached document.
(4) Number of shares issued and outstanding (common shares)i.
Number of shares issued and outstanding at the end of the period (including treasury shares)
As of January 31, 2023
8,720,534 sharesii.

As of July 31, 2022
Number of treasury shares at the end of the period
As of January 31, 2023

iii.

As of July 31, 2022
155 shares
Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended January 31, 2023
8,720,379 shares
Six months ended January 31, 2022

8,720,534 shares
155 shares

8,720,105 shares* The report on quarterly financial results is not subject to audit procedures by a certified public accountant or an auditing firm.
* Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information currently available
to, and certain assumptions that are deemed to be reasonable by the Company. Such statements are not intended as a promise by theCompany that they will be achieved. Actual results may differ from the forecasts in this document due to various factors. For theconditions forming the assumptions used in forecasting earnings and precautions regarding the use of earnings forecasts, please refer
to “1. Qualitative information for the first six months of the fiscal year ending July 31, 2023, (4) Forward-looking information
including consolidated earnings forecasts” on page 3 of the Attachment.

Contents of Attachment

1．

2.

Qualitative information for the first six months of the fiscal year ending July 31, 2023 …..………………
(1) Consolidated financial results …..……………………………………………………………………
(2) Consolidated financial position ………..……………………………………………………………..
(3) Consolidated cash flows ...……………………………………………………………………………
(4) Forward-looking information including consolidated earnings forecasts ……………………………
Quarterly consolidated financial statements and major notes ……………………………………………...
(1) Quarterly consolidated balance sheet …………………………………………………………………
(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income…
Consolidated statement of income
Six months ended January 31, 2023 ……………………………………………………………..……
Consolidated statement of comprehensive income
Six months ended January 31, 2023 ……………..……………………………………………………
(3) Consolidated statement of cash flows ………………………………………………………………..
(4) Notes to quarterly consolidated financial statements ………………….……………………………..
(Changes in scope of consolidation or scope of application of equity method) ………………………
(Notes on going concern assumption) ………………………………………………………………..
(Notes when there are significant changes in amounts of equity) ……………………………………..
(Application of accounting treatments specific to the preparation ofquarterly consolidated financial statements) ………………………………………………………...
(Changes in accounting policies) ……………………………………………………………………..
(Segment information, etc.) …………………………………..………………………………………

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3
3
4
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7
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1. Qualitative information for the first six months of the fiscal year ending July 31, 2023

(1) Consolidated financial results
In the first six months of the fiscal year ending July 31, 2023, the Japanese economy saw gradual normalization of
economic activities, including the first year-end and New Year holidays in three years with no restrictions on movement
due to the spread of vaccinations, and a gradual recovery in domestic consumer spending. On the other hand, prices ofvarious consumer goods were being raised. Price hikes in a wide range of fields will hinder in demand for consumer
goods that rely heavily on preference, and it is expected that a full-fledged recovery in the domestic cosmetics market
will still take time.
Under such circumstances, Premier Anti-Aging Co., Ltd. (“the Company”) and its consolidated subsidiaries (“theGroup”) have been committed to “being unique” since establishment and have launched two new brands, “SINTO” and“X,” in the inner care business by combining our strengths in “product planning capability” and “marketing capability”
with our “subscription sales model.” In addition, the Company has promoted the expansion of anti-aging businesses,
including the acquisition of Venex Co., Ltd. with the aim of acquiring brands and research and development functionsin the recovery business area.
The Company has been trying to bolster sales of the “DUO” brand by rolling out new TV commercials from lastSeptember and launching a new product, “DUO The Cleansing Balm Hot.” However, sales of the “DUO” branddecreased in both mail order and wholesale sales channels due to the calming down of the boom for “DUO The
Cleansing Balm Black Repair,” the continued intensification of competition in the cleansing market and balm
formulations, and the decrease in new customer acquisitions due to advertising investments focused on investment
efficiency. From February of this year, the Company has released a new TV commercial “King of Balm” and haslaunched a limited product “DUO The Kingdom Cleansing Balm.” In addition, we are strengthening our approach toexisting customers, such as holding ambassador roundtables as a loyal customer measure and are developing measures
to put a brake on the decline in sales of our main brand “DUO.”
In the “CANADEL” brand, the Company has steadily increased sales of unique new products including “CANADEL
Barrier Fix.” We launched refill products last September, we have been developing promotions centered on newcommercials since last October and we launched a unique new product with gold leaf last November in an aim to
expand to the main target segment of the all-in-one cosmetics market.
The Company expanded sales of the “clayence” brand, which was launched last March, to retail outlets in line with theroll out of TV commercials last October and completed distribution to 8,000 retail outlets by the end of October. Until
the previous fiscal year, it was sold through mail order alone, but through a media mix strategy that utilizes mass
marketing such as TV commercials, it has further increased its recognition, and sales are growing in both mail order
and wholesale sales channels. In addition, in order to eliminate dissatisfaction with the feeling of color-treatment
specific use and raise awareness of correct usage, we are working to improve the retention rate by including leaflets on
how to use in the delivery box and strengthening the contact center functions.
As a result of the above activities, net sales in the first six months ended January 31, 2023 amounted to 14,258,716
thousand yen (down 3,711,423 thousand yen year-on-year), operating profit was 109,034 thousand yen (down2,139,345 thousand yen year-on-year), ordinary profit was 95,237 thousand yen (down 2,226,669 thousand yen yearon-year), and loss attributable to owners of parent was 26,013 thousand yen (profit attributable to owners of parent of
1,360,409 thousand yen in the same period of the previous fiscal year).
Note that descriptions by segment are omitted, as the Group has a single business segment engaged in manufacturing
and sales of cosmetics.
(2) Consolidated financial position
Assets, liabilities and net assets at the end of the second quarter of the current fiscal year were as follows.
(Assets)
Total assets at the end of the second quarter of the current fiscal year increased by 1,425,921 thousand yen from theend of the previous fiscal year to 13,726,368 thousand yen. The main factors of increase and decrease were as follows.
Current assets increased by 553,198 thousand yen from the end of the previous fiscal year to 12,070,131 thousand yen.
This was mainly due to an increase of 1,417,172 thousand yen in cash and deposits, a decrease of 660,669 thousand2

yen in accounts receivable - trade, a decrease of 409,892 thousand yen in finished goods and an increase of 171,560
thousand yen in prepaid expenses included in current assets “other.”Non-current assets increased by 872,722 thousand yen from the end of the previous fiscal year to 1,656,237 thousand
yen. This was mainly due to an increase of 561,942 thousand yen in goodwill.
(Liabilities)
Total liabilities at the end of the second quarter of the current fiscal year increased by 1,464,674 thousand yen from theend of the previous fiscal year to 5,417,101 thousand yen.
Current liabilities increased by 565,586 thousand yen from the end of the previous fiscal year to 3,786,127 thousand
yen. This was mainly due to an increase of 758,000 thousand yen in short-term borrowings and a decrease of 381,931
thousand yen in accounts payable - other.
Non-current liabilities increased by 899,087 thousand yen from the end of the previous fiscal year to 1,630,974
thousand yen. This was mainly due to an increase of 815,140 thousand yen in long-term borrowings.
(Net Assets)
Net assets at the end of the second quarter of the current fiscal year decreased by 38,753 thousand yen from the end of
the previous fiscal year to 8,309,267 thousand yen. This was mainly due to recording loss attributable to owners ofparent of 26,013 thousand yen.
As a result, the equity ratio was 60.5%.
(3) Consolidated cash flows
Cash and cash equivalents (“net cash”) at the end of the first six months of the current fiscal year amounted to 4,379,740
thousand yen (increased by 1,416,573 thousand yen from the end of the previous fiscal year).
The status of cash flows and their factors during the first six months of the current fiscal year were as follows.
(Cash flows from operating activities)
Net cash provided by operating activities in the first six months of the current fiscal year amounted to 773,554 thousandyen (1,833,203 thousand yen used in the same period of the previous fiscal year). The major factors of cash inflows
included recording of profit before income taxes of 95,237 thousand yen and a decrease in trade receivables of 844,374
thousand yen, while the major factors of cash outflows were a decrease in accounts payable - other of 437,553 thousand
yen and income taxes paid of 143,001 thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities in the first six months of the current fiscal year amounted to 436,754 thousand yen(33,539 thousand yen used in the same period of the previous fiscal year). The major factors of cash outflows were
payments for purchase of intangible assets of 278,925 thousand yen and purchase of shares of subsidiaries resulting inchange in scope of consolidation of 124,013 thousand yen.
(Cash flows from financing activities)
Net cash provided by financing activities in the first six months of the current fiscal year amounted to 1,094,454
thousand yen (562,581 thousand yen provided in the same period of the previous fiscal year). The major factors of cash
inflows were net increase in short-term borrowings of 758, 000 thousand yen and proceeds from long-term borrowingsof 500,000 thousand yen, while the major factors of cash outflows included repayments of long-term borrowings of
163,546 thousand yen.
(4) Forward-looking information including consolidated earnings forecasts
The consolidated earnings forecast for the fiscal year ending July 31, 2023 remains unchanged from the forecast
announced on December 14, 2022. The Company will promptly disclose it if it becomes necessary to revise the earnings
forecast.
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2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet(Thousands of yen)
As of July 31, 2022

As of January 31, 2023

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

2,973,269
3,071,846
3,784,814
576,394

4,390,441
2,411,176
3,374,922
656,843

Other

1,110,607

1,236,746

Total current assets

11,516,933

12,070,131

110,246

111,437-

561,942

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

266,267

555,800

Total intangible assets

266,267

1,117,742

Investments and other assets

407,000

427,057

Total non-current assets

783,514

1,656,237

12,300,447

13,726,368

435,845
390,000
322,114
1,568,285
165,723
18,607

449,618
1,148,000
401,797
26,6001,186,353
141,567
52,976

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
Provision for bonuses
Other319,964

379,215

Total current liabilities

3,220,541

3,786,127

Non-current liabilities
Bonds payable
Long-term borrowings

701,11483,6001,516,254

Asset retirement obligations

30,772

31,120Total non-current liabilities
Total liabilities

731,886

1,630,974

3,952,427

5,417,101

1,351,544
1,351,544
5,622,227

1,351,544
1,351,544
5,596,214(1,313)(1,313)8,324,004

8,297,990

24,016

11,276

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment

24,016

11,276

Total net assets

Total accumulated other comprehensive income

8,348,020

8,309,267

Total liabilities and net assets

12,300,447

13,726,368

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses

Six months ended January 31, 2022 Six months ended January 31, 2023
(From August 1, 2021
(From August 1, 2022
to January 31, 2022)
to January 31, 2023)
17,970,140
14,258,716
3,470,608
3,090,233
14,499,531
11,168,483
12,251,152
11,059,449

Operating profit
Non-operating income
Interest income
Surrender value of insurance policies
Profit on currency exchange
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on currency exchange
Miscellaneous losses
Total non-operating expenses

2,248,379

109,034723
35,693
42,483
5,391

782
6,337

84,292

7,120

8,740
2,025

6,609
13,486820

10,765

20,917

Ordinary profit

2,321,906

95,237

Profit before income taxes

2,321,906

95,237

961,497

121,250

Profit (loss)

1,360,409(26,013)

Profit (loss) attributable to owners of parent

1,360,409(26,013)

Income taxes - current

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(Quarterly consolidated statement of comprehensive income)(Six months ended January 31, 2023)(Thousands of yen)Six months ended January 31, 2022

Six months ended January 31, 2023

(From August 1, 2021

(From August 1, 2022

to January 31, 2022)

to January 31, 2023)

Profit (loss)
Other comprehensive income
Foreign currency translation adjustment

1,360,409(26,013)

10,525(12,739)

Total other comprehensive income

10,525(12,739)

Comprehensive income

1,370,934(38,753)

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,370,934(38,753)6

(3) Quarterly consolidated statement of cash flows(Thousands of yen)Six months ended January 31, 2022

Six months ended January 31, 2023

(From August 1, 2021

(From August 1, 2022

to January 31, 2022)

to January 31, 2023)

Cash flows from operating activities
Profit before income taxes
Depreciation
Interest and dividend 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
Other, net
SubtotalInterest and dividend received
Interest paid

2,321,906
29,856(723)
8,740
681,417(2,105,179)(205,602)
118,557(10,336)(251,411)(772,225)(185,001)
723(9,408)95,23779,503(782)
6,609
844,374442,024(32,253)(437,553)(36,420)(164,615)
127,094923,218
781(7,444)

Income taxes paid

(1,639,516)(143,001)

Net cash provided by (used in) operating activities(1,833,203)

773,554(600)(9,687)(101,306)(600)(32,420)(278,925)-(124,013)

(264)
1,566

(795)
-

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting from change in scopeof consolidation
Payments of leasehold and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Proceeds from cancellation of insurance funds

76,752-

Net cash provided by (used in) investing activities(33,539)(436,754)

Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

760,000-

758,000
500,000

Repayments of long-term borrowings(197,419)(163,546)

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

562,581
10,548(1,293,613)

1,094,454(14,681)
1,416,572

Cash and cash equivalents at beginning of period

6,052,155

2,963,167

Cash and cash equivalents at end of period

4,758,541

4,379,740

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(4) Notes to quarterly consolidated financial statements(Changes in scope of consolidation or scope of application of equity method)
Venex Co., Ltd. was included in the scope of consolidation as it was acquired during the second quarter of the fiscal
year ending July 31, 2023. Since December 31, 2022 was set as the deemed acquisition date, only the balance sheet isconsolidated in the first six months under review.
In addition, there are no material changes to the scope of application of the equity method.
(Notes on going concern assumption)
Not applicable(Notes when there are significant changes in accounts of equity)
Not applicable(Application of accounting treatments specific to the preparation of quarterly consolidated financial statements)(Calculation of income tax expense)
Income tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effect accounting
to profit before income taxes for the fiscal year, including the second quarter, and multiplying profit before income
taxes by the estimated effective tax rate.
(Changes in accounting policies)(Application of implementation guidance on accounting standard for calculation of fair value and others)
The "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No. 31, June17, 2021, the “Implementation Guidance on Accounting Standard for Fair Value Measurement”) is applied from the
beginning of the first quarter of the fiscal year ending July 31, 2023, and in accordance with the transitional treatment
set forth in Paragraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement, theGroup has decided to apply prospectively the new accounting policies established by the Implementation Guidance on
Accounting Standard for Fair Value Measurement. This change has no impact on the quarterly consolidated financial
statements.
(Segment information, etc.)(Segment information)
This information is omitted as the Group has a single business segment engaged in manufacture and sale of cosmetics.

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