FY2022

September 13, 2022

4Q

Premier Anti-Aging Co., Ltd.
TSE Growth 4934

Full Year Results Briefing Material
for the Fiscal Year Ended July 2022

INDEX

01

FY2022 RESULTS

02

FY2023 FORECAST

03

INITIATIVES FOR FY2023

04

CLOSING REMARKS

05

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

2

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

3

01. FY2022 RESULTS

Statement of income
 Sales increased particularly due to the strong rise in acquisitions of customers for CANADEL andclayence in the mail order/EC channel.
 Operating profit decreased due to decline in retail sales, a highly profitable channel, and increase in
SG&A expenses.
(Millions of Yen)FY2021
Net sales

FY2022

Increase/decrease

YoY

32,81533,911

1,096

3.3％

ＬMail order/EC

22,28424,150

1,865

8.4％

ＬWholesale

9,456

8,382

(1,073)(11.4％)

ＬOthers

1,073

1,378

305

28.4％

Operating profit

4,680

2,414

(2,265)(48.4％)

Operating profit margin (％)

14.3％

7.1％

－

(7.2pts)

Ordinary profit

4,653

2,572

(2,080)(44.7％)

Profit attributable to owners ofparent

2,793

1,424

(1,369)(49.0％)© 2022 Premier Anti-Aging, Co., Ltd.

4

01. FY2022 RESULTS

SG&A expenses
 Outsourcing and other SG&A expenses substantially increased.
 Impacted by investments in systems that will enable us to enhance our mission-critical systems and
CRM initiatives and increase in investments abroad in the first half of the year.
(Millions of Yen)FY2021
SG&A expenses

Increase/decrease

FY2022

YoY

21,74924,214

2,464

11.3%

ＬAdvertising

12,812

12,920107

0.8%

ＬOutsourcing

4,802

5,787

985

20.5%

ＬPayroll and allowances

640

1,104

463

72.4%

ＬR&D

211

432

221

104.6%

ＬOthers

3,283

3,970

687

20.9%

© 2022 Premier Anti-Aging, Co., Ltd.

5

01. FY2022 RESULTS

Advertising expenses

 Advertising expenses were at about the same level as in the previous fiscal year both in amount and as apercentage of sales.
 Effective and efficient investment in advertising alongside controlling CPO kept customer acquisition
strong.
YoY+3.3%

33,911Millions of yen

32,815Advertising expenses/net sales

YoY
+0.8%

12,92012,812

Net
sales
売上高

FY2021OthersOthers

TVCM

TVCM

CAC

CAC

Ad
expenses
広告宣伝費

Net
sales
売上高

39.0％ ➡

38.1％(-0.9 pts)

Customer acquisition costs/net sales

25.7％ ➡

23.4％(-2.3 pts)Ad
expenses
広告宣伝費

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

6

01. FY2022 RESULTS

Statement of income (QoQ)
 Sales increased slightly, and regained profitability in FY2022 4Q.

Millions of yen

FY20214Q

FY2022
1Q

FY20222Q

FY2022
3Q

FY2022
4Q

Net sales

9,049

9,865

8,104

7,926

8,015

1.1%

Gross profit*

7,192

7,924

6,575

6,162

5,967

(3.2%)

SG&A expenses

6,940

5,849

6,401

6,453

5,510

(14.6%)

4,197

2,950

3,572

3,678

2,718

(26.1%)

252

2,074

173

(290)

456

－

ＬAdvertising expenses

Operating profit

Percentages are compared to 3Q of FY2022*FY2021 figure is net gross profit.

© 2022 Premier Anti-Aging, Co., Ltd.

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01. FY2022 RESULTS

CPO and sales composition ratio Customer acquisition remained strong by controlling the overall CPO.

 Sales composition ratio of non-balm products increased as CANADEL and clayence grew.
 Progress made in transforming our business structure that has been solely dependent on the sales
growth of DUO into one supported by multiple brands.
CPO and number of new customer

144,000

14,000

Sales composition ratio of non-balm products

acquisitions in mail orderclayence

126,000

12,000CANADELDUO
Others108,000

CPO

10,000Non-balm sales
Balm sales

19％

34％

90,0008,000
72,0006,000
54,0004,000

36,0002,000

18,000

0

8

9
1Q

10

11

12
2Q

1

2

FY2022

3
3Q

4

5

6
4Q

7

0

4Q

FY2021

1Q

2Q

3Q

FY20224Q© 2022 Premier Anti-Aging, Co., Ltd.

8

01. FY2022 RESULTS

FY2022 summaryPositives

Negatives



Progress made in transforming our business structure that has beensolely dependent on the sales growth of DUO into one supported bymultiple brands.
Sales composition of DUO was 82% and CANADEL was 16% (DUO
was 89% and CANADEL was 10% in the first quarter).
Launched a new hair care brand, “clayence” and men’s brand, “DUO
men,” clayence has had an explosive start.

Competition has intensified and the sales of DUO declined more than
expected. The highly profitable retail channel particularly faceddifficulties.
Due to the changes in advertising regulations in 1Q, we were unable
to proactively invest in advertising, which undermined mail ordersales growth.

© 2022 Premier Anti-Aging, Co., Ltd.

9

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

10

02. FY2023 FORECAST

FY2023 forecast Plan to increase sales by 9.1%, which will be mainly driven by growth of CANADEL and clayence.
 Aim to increase operating profit by 24.3% by meticulously managing costs and effectively andefficiently investing in advertising.

(Millions of Yen)FY2022
ActualFY2023
Forecast

Increase/
Decrease

YoY

Full year
Six months

Net sales

33,91137,000

3,088

9.1％

Operating profit

2,414

3,000

585

24.3％

Operating profit margin (%)

7.1%

8.1％

－

1.0ptsOrdinary profit

2,572

2,985

412

16.0％

Profit attributable toowners of parent

1,424

1,820

395

27.8％

Net sales

17,97016,700(1,270)(7.1％)

Operating profit

2,248

930

(1,318)(58.6％)

Operating profit margin (%)

12.5％

5.6％

－

(6.9pts)

Ordinary profit

2,321

930

(1,391)(59.9％)

Profit attributable toowners of parent

1,360

550

(810)

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

11

03 INITIATIVES FOR FY2023© 2022 Premier Anti-Aging, Co., Ltd.

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03. INITIATIVES FOR FY2023

Key brands and sales composition ratios

 Expanded our product line-up, which now includes 4 skin care brands, 1 hair care brand, and 1 men’scategory brand.
 Making steady progress on our path to transforming our business structure to one that is supported bymultiple brands.
SKIN CARESKIN CARE Being nurtured as the second

 Main brand since our founding.
Has driven sales for ourcompany as a pioneer in thecleansing balm market.

 Launched February 2010.
 Offering 33 SKUs*1

key brand after DUO.

Sales composition
ratio*282％

Addresses needs ofcontemporary women bysaving time.

 Launched April 2019
 Offering 7 SKUs*1

Sales composition
ratio*2

16％

HAIR CARE

 Applying brand nurturing know-how gained throughDUO and CANADEL.

 Home hair care brand that

focuses on young generation
with graying hair.

 Launched March 2022.
 Offering 5 SKUs

Sales composition
ratio*2

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

© 2022 Premier Anti-Aging, Co., Ltd.

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03. INITIATIVES FOR FY2023

Structure for promoting our growth strategy
 Established the brand management division this fiscal year.
 Execute growth strategy along 2 axes – brand x channel.
CHANNEL
Mail Order/EC

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

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

New
Brands Launch multiple brands in new
categories.

Maintain/enhancebranding power
Invest in effective
and efficient
advertising

CX promotion

BRAND

DUO

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

WholesaleEnter mass market by
expanding channel mix

Apply brand nurturing know-how© 2022 Premier Anti-Aging, Co., Ltd.

14

03. INITIATIVES FOR FY2023

Brand strategy : DUO

 Sales decreased due to intensifying competition since FY2022 Q2, however, the rate of decrease has
slowed down recently.
 Continues to enjoy a commanding lead as the No.1 brand in the category with cumulative number of
shipments surpassing 40 million in August 2022.
DUO monthly sales trends and 6 months rolling averagefor cleansing balm shipments
Mail order/EC(Millions ofyen)

Wholesale

3,500

120,000

 Improve brand value(10,000 units)

6 month rolling average for cleansing balm shipments#REF!

Others140,000

DUO “Cleansing Balm” series will
aim to be No.1 in the category for
4 consecutive years

3,000

through media exposure
2,500

100,000

2,000

80,0001,500

60,0001,000

40,000500

20,000

0

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

with the No.1 brand status.
 Introduce new balm
products.
Transform DUO brand into a skincare brand by nurturing non-balm
products

 Nurture skin care products.
 Developing potentially
iconic, core products.

0© 2022 Premier Anti-Aging, Co., Ltd.

15

03. INITIATIVES FOR FY2023

Brand strategy : CANADEL New, unique products such as “Premier Zero” and “Premier Barrier Fix” are driving growth with sales
surpassing 5 billion yen in FY2022.
 Further enhance awareness and expand to main target audience in the all-in-one cosmetics market.
 Aim to nurture as the No.1 all-in-one brand.
CANADEL monthly sales trend

TV
CM(Millions of yen)

Launched Barrier
Fix

Mail order

800

Wholesale

1.2

Others

700

TV
CM
600

1.0

Launched Premier
Zero

Refills

Value-added
limited edition
products

Appealing
quasi-drug
products

0.8

500

TV
CM

400

TV
CM

0.6

300
0.4
200

TVCM

0.2
100

0

8

9

1Q

10

11

12

2Q

1

2

FY2021

3

3Q

4

5

6

4Q

7

8

9

1Q

10

11

12

2Q

1

2

FY2022

3

3Q

4

5

6

4Q

7

0.0

TV commercials tailored to
product strategy© 2022 Premier Anti-Aging, Co., Ltd.

16

03. INITIATIVES FOR FY2023

Brand strategy : clayence Has been accepted by the market at a speed that even exceeds DUO and CANADEL since its launch in March2022.
 Introduce clayence to the mass market soon and further improve awareness as early performance has exceeded expectations.
 Planning to expand sales online as well as offline/wholesale by shipping to approximately 7,000 stores during the first half.
Weekly acquisition comparison before and after
Planning to expand to
first TVCM series aired

approximately 7,000 stores
when the TVCM airs

Expanded shipments to 8,000 storesin time for TVCM series

Goal

10,000 units

CANADEL after first
TVCM series

13W
14W
15W
16W
17W
18W
19W
20W
21W
22W
23W
24W
25W
26W
27W
28W

82W

81W

80W

79W

78W

77W

76W

75W

74W

73W

Begin airing TVCMs from October 2022.

clayence expected shipments
after first TVCM series*Weeks indicate weeks passed since the brand launch.
© 2022 Premier Anti-Aging, Co., Ltd.

17

03. INITIATIVES FOR FY2023

Channel strategy : CX promotion that enhances the value of the experience and builds long-term
relationships with customers
 Enhance customer experience and expand our fan base by increasing touchpoints.

 Integrate, utilize, and analyze the customer data platform we built last fiscal year to make optimal,
personalized proposals to each customer, so that we may provide the best customer experience andforge long-lasting relationships with our customers.

Plan to launch in thefirst half of FY2023

Actual data onpurchasing behavior

Real time
behavior datafrom social media

Understand preferencesfrom actual data

Project the future to make
optimal, personalized proposals

Become an anti-aging partnerthat helps resolve customers’
problems

Improve website andincrease CVR*.
*Conversion rate
© 2022 Premier Anti-Aging, Co., Ltd.

18

03. FY2023 INITIATIVES

Sustainability initiatives

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

E

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

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

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

Provide refills

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

19

04 CLOSING REMARKS© 2022 Premier Anti-Aging, Co., Ltd.

20

04. CLOSING REMARKS

Mid-term strategy

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

Nurturing brandNo. 1 brand in the category

DUO
CANADEL
CANADELSalesclayence
Grow verticallyKo

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

21

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

22

05. Appendix

Company Profile
Name

Premier Anti-Aging Co., Ltd.

Established

December 2009

Head office

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

Board
members

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

Employees

223 (as of July 31, 2022)

Line ofbusiness

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

Group
companies

Premier Wellness Science Co., Ltd.
Premier Anti-Aging (Shanghai) Co., Ltd.
© 2022 Premier Anti-Aging, Co., Ltd.

23

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.

24

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© 2022 Premier Anti-Aging, Co., Ltd.

25

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 6% while asset-light
operations continue.

(Millions of yen)Comparedwith the endof FY2021

FY2021

FY2022

Increase/decrease

13,071

12,300(770)(5.9％)

12,47911,516(962)(7.7％)

591

783

192

32.5％

6,168

3,952

(2,215)(35.9％)

5,591

3,220

(2,371)(42.4％)

576

731

155

27.0％

Total net assets

6,903

8,348

1,444

20.9％

Total liabilities
and net assets

13,071

12,300(770)(5.9％)

Equity ratio（％）

52.8％

67.9％

－

15.1pts

Total assets
ＬCurrent assets
ＬNon-current assets

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

26

05. Appendix

Net Sales by Channel
 Other sales are on an increasing trend due to sales from outside malls.

12,000Trends in net sales by channel(Millions of yen)

Mail-order
Wholesale
Others (including overseas subsidiaries)
10,000

8,000

35%

6,000

18%

33%

16%

78%

Mail-order/EC

27%

Wholesale

25%

28%

32%
21%
18%

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%

1Q

2Q

68%

76%

3Q

FY2019FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

3Q

4Q

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

27

05. Appendix

Total Number of Mail-order/EC Customers
Total number of members is approximately 3.5 million. Build long-term relationships with customers andactivate the membership base.
Trends in the total number of mail-order/EC customers
3,500,000

1(People)1

3,000,000

2,500,000

1

2,000,000

1
1,500,000

01,000,0000

500,000

0

8

9
1Q

10

11

12
2Q

1

2

FY2020

3
3Q

4

5

6
4Q

7

8

9
1Q

10

11

12
2Q

1

2

FY2021

3
3Q

4

5

6
4Q

7

8

9
1Q

10

11

12
2Q

1

2

3

FY2022

3Q

4

5

6

7

0

4Q

© 2022 Premier Anti-Aging, Co., Ltd.

28

05. Appendix

Number of Cross-selling Customers

 Number of customers who subscribe 2 or more products has increased, mainly in clayence.
 Aim to increase unit price and reduce costs by increasing the number of cross-selling customers more
broadly.
Number of customers who subscribe 2 or more products and the relevant ratio
Customers who subscribe 2 or more products
Ratio of customers who subscribe 2 or more products

13.3%
9.7%
100,000
people

1Q

2Q

3Q

4Q

1Q

2Q

FY20203Q
FY2021

4Q

1Q

2Q

3Q

4Q

FY2022

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

© 2022 Premier Anti-Aging, Co., Ltd.

29

05. Appendix

DUO Cleansing Balm Monthly Shipment Trends (by Unit) Cleansing balms continued to decline due to increased competition, but the decline in unit shipments
slowed down in the second half of FY2022.
 In August 2022, cumulative shipments surpassed 40 million units, firmly establishing the brand as theoverwhelming No. 1 brand in its category.
160

DUO Cleansing Balm: Number of units shipped by item
(10,000 units)

140

Original
Clear
White
Barrier

120

Black
Other
6M Moving Average

100

80

60

40

20

0

8

9
1Q

10

11

12
2Q

1

2

FY2020

3
3Q

4

5

6
4Q

7

8

9
1Q

10

11

12
2Q

1

2

FY2021

3
3Q

4

5

6
4Q

7

8

9
1Q

10

11

12
2Q

1

2

FY2022

3

4

3Q

5

6

7

4Q

Note: For some transactions, shipments and recording of relevant sales are not timed due to accounting reasons.

© 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 33 SKUs* centering on
cleansing balm.

Major cosmetics awards granted in the first half of 2022

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

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

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 7 SKUs*
centering on all-in-one cosmetics.

Major cosmetics awards granted in the first half of 2022

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

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

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 April 30, 2022, excluding limited items and different sizes.
© 2022 Premier Anti-Aging, Co., Ltd.

33

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 July 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 July 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 3 SKUs*.

Major cosmetics awards granted in the first half of 2022

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

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

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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 July 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.
180

160

Trends in the domestic market size for cleansing(Billions of yen)

COVID-19
outbreak

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

Skin care
Non skin care cosmetics

COVID-19
Outbreak

3,500

3,000

2,500

Cosmetics market
excluding skin care
CAGR: 1.08%

2,000(2013-2022)

1,500

1,000

Skin care market
CAGR: 1.50%

500

0(2013-2022)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

(Estimate)2023(Forecast)

Source: “Cosmetics Marketing Handbook 2022”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 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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