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

September 13, 2022

Consolidated Financial Results
for the Fiscal Year Ended July 31, 2022
(Under Japanese GAAP)

Company name:
Premier Anti-Aging Co., Ltd.
Listing exchange: Tokyo Stock Exchange
Securities code:
4934
URL:
https://www.p-antiaging.co.jp/en
Representative:
Kiyoshi Matsuura, President
Inquiries:
Yuka Uehara, Head of Corporate Communication Division and Executive Officer
Phone:+81-3-3502-2020
Scheduled date for next annual general shareholders meeting:
October 28, 2022
Scheduled date for commencing dividend payments:
Scheduled date to file annual securities report:
October 31, 2022
Preparation of supplementary materials on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended July 31, 2022 (from August 1, 2021 to July 31, 2022)(1) Consolidated operating results(Percentage figures indicate year-on-year changes)

Net sales
Fiscal year ended

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

July 31, 2022

33,9113.3

2,414(48.4)

2,572(44.7)

1,424(49.0)

July 31, 2021

32,815

-

4,680

-

4,653

-

2,793

-

Note: Comprehensive income

Fiscal year ended July 31, 2022:
Fiscal year ended July 31, 2021:

Basic earnings per
share

Diluted earnings
per share

1,453 million yen [ (47.9) %]2,788 million yen [ - %]Return on equity

Operating profit/
net sales

Return on assets

Fiscal year ended

Yen

Yen

%

%

%

July 31, 2022

163.35163.11

18.7

20.3

7.1

July 31, 2021

326.87326.38

66.9

46.7

14.3

Notes: 1. Premier Anti-Aging Co., Ltd. (“the Company”) started preparation of consolidated financial statements from the fiscal year
ended July 31, 2021. Accordingly, the rate of year-on-year change for the fiscal year ended July 31, 2021 is not indicated.
2. Diluted earnings per share for the fiscal year ended July 31, 2021 is calculated by using the average share price for theperiod from the initial listing date to the end of the said fiscal year, deeming it to be the period-average share price, as theCompany was listed on the Tokyo Stock Exchange Mothers on October 28, 2020.
3. The Company conducted a 20-for-1 stock split of its common shares as of August 29, 2020. In accordance with this, basic
earnings per share and diluted earnings per share are calculated on the assumption that the stock split was conducted at the
beginning of the fiscal year ended July 31, 2021.
4. The Company has applied the “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan[ASBJ] Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year ended July 31, 2022. Accordingly, thefigures for the fiscal year ended July 31, 2022 are after the application of the Standards, etc.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

July 31, 2022

12,300

8,348

67.9

957.30July 31, 2021

13,071

6,903

52.8

791.65Reference:

Total shareholders’ equity
As of July 31, 2022:
As of July 31, 2021:

8,348 million yen
6,903 million yen

Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the fiscal year ended July 31, 2022. Accordingly, the figures for the fiscal year ended July 31, 2022 areafter the application of the Standards, etc.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

July 31, 2022

(3,322)

July 31, 2021

2,753

(297)

501

2,963

(180)

1,584

6,052

Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the fiscal year ended July 31, 2022. Accordingly, the figures for the fiscal year ended July 31, 2022 areafter the application of the Standards, etc.

2. Cash dividends
Annual dividends per share
End of firstquarter

End ofsecondquarterYen

End ofthird
quarter

Yen

Fiscalyear-end

Yen

Yen

Total cash
dividends

Total

Payout ratio(Consolidated)

Dividends to
net assets(Consolidated)%%

Yen Millions of yen

Fiscal year ended
July 31, 2021

-

0.00

-

0.00

0.00

-

-

-

Fiscal year ended
July 31, 2022

-

0.00

-

0.00

0.00

-

-

-

Fiscal year ending
July 31, 2023
(Forecast)

-

0.00

-

0.00

0.00

-

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 for full year and for six months)
Net sales
Millions of yen

Operating profit% Millions of yen

Six months ending
January 31, 2023

16,700 (7.1)

Full year

37,000

9.1% Millions of yen

930 (58.6)
3,000

Profit attributable toowners of parent

Ordinary profit

24.3% Millions of yen

930 (59.9)
2,985

16.0

Basic earnings
per share%Yen

550 (59.6)

63.07

1,820

27.8

208.71* Notes(1) Changes in significant subsidiaries during the fiscal year (changes in specified subsidiaries resulting in change in scope of
consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementsi.
Changes in accounting policies due to revisions to accounting standards, etc.: Yesii.
Changes in accounting policies other than those in i. above: Yesiii.
Changes in accounting estimates: Noneiv.
Restatements: None
(Note) For details, please refer to "3. Consolidated financial statements and major notes (5) Notes to consolidated financial
statements (Changes in accounting policies)" on page 11 of the attached document.
(3) Number of shares issued and outstanding (common shares)i.
Number of shares issued and outstanding at the end of the fiscal year (including treasury shares)
As of July 31, 2022
8,720,534 shares
As of July 31, 2021

8,720,000 shares

ii.

iii.

Number of treasury shares at the end of the fiscal year
As of July 31, 2022

155 shares

As of July 31, 2021
Average number of shares outstanding during the fiscal year
Fiscal year ended July 31, 2022

89 shares
8,720,265 sharesFiscal year ended July 31, 2021
8,546,495 shares
Note: The Company conducted a 20-for-1 stock split of its common shares as of August 29, 2020. In accordance with this, thenumber of shares issued and outstanding at the end of the fiscal year and the average number of shares outstanding during the
fiscal year were calculated on the assumption that the stock split was conducted at the beginning of the fiscal year ended July
31, 2021.

[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended July 31, 2022 (from August 1, 2021 to July
31, 2022)(1) Non-consolidated operating results(Percentage figures indicate year-on-year changes)

Net sales
Fiscal year ended

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

July 31, 2022

33,9763.6

3,156(38.4)

2,739(46.4)

1,436(55.6)

July 31, 2021

32,792

59.9

5,125

209.9

5,109

212.4

3,237

183.1

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share
Yen

Yen

July 31, 2022

164.70164.46

July 31, 2021

378.82378.24

Notes: 1. Diluted earnings per share for the fiscal year ended July 31, 2021 is calculated by using the average share price for theperiod from the initial listing date to the end of the said fiscal year, deeming it to be the period-average share price, as theCompany was listed on the Tokyo Stock Exchange Mothers on October 28, 2020.
2. The Company conducted a 20-for-1 stock split of its common shares as of August 29, 2020. In accordance with this, basic
earnings per share and diluted earnings per share for the fiscal year ended July 31, 2021 are calculated on the assumptionthat the stock split was conducted at the beginning of the fiscal year ended July 31, 2021.
3. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),
etc. from the beginning of the fiscal year ended July 31, 2022. Accordingly, the figures for the fiscal year ended July 31,
2022 are after the application of the Standards, etc.

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

July 31, 2022

12,692

8,779

69.2

1,006.81

July 31, 2021

13,373

7,352

55.0

843.20

Reference:

Total shareholders’ equity
As of July 31, 2022:
8,779 million yen
As of July 31, 2021:
7,352 million yen
Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the fiscal year ended July 31, 2022. Accordingly, the figures for the fiscal year ended July 31, 2022 areafter the application of the Standards, etc.
* The report on financial results is not subject to audit procedures by a certified public accountant or an auditing firm.
* Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information currently available
to, and certain assumptions that are deemed to be reasonable by the Company. Such statements are not intended as a promise by theCompany that they will be achieved. Actual results may differ from the forecasts in this document due to various factors. For theconditions forming the assumptions used in forecasting earnings and precautions regarding the use of earnings forecasts, please refer
to “1. Qualitative information on the fiscal year ended July 31, 2022, (4) Future outlook” on page 3 of the Attachment.

Contents of Attachment

1．

2.
3.

Qualitative information on the fiscal year ended July 31, 2022 …..………………………………………..
(1) Consolidated financial results …..……………………………………………………………………
(2) Consolidated financial position ………..……………………………………………………………..
(3) Consolidated cash flows ...……………………………………………………………………………
(4) Future outlook ………………………………………………………………………………………..
Basic principle on the choice of accounting standards …………………………………………………….
Consolidated financial statements and major notes ………………………………………………………..
(1) Consolidated balance sheet …………………………………………………………………………...
(2) Consolidated statement of income and consolidated statement of comprehensive income ………….
Consolidated statement of income ……………………………………………………………………
Consolidated statement of comprehensive income …………………………………………………...
(3) Consolidated statement of changes in shareholders' equity ………………………………………….
(4) Consolidated statement of cash flows ………………………………………………………………..
(5) Notes to consolidated financial statements ………………….……………………………………….
(Notes on going concern assumption) ………………………………………………………………..
(Changes in accounting policies) …………………………………………………………………….
(Segment information, etc.) …………………………………………………………………………
(Per share information) ……………………………………………………………………………….
(Significant subsequent events) …………………………………..………………………………….

1

2
2
2
3
3
4
5
5
7
7
8
9
10
11
11
11
12
13
14

1. Qualitative information on the fiscal year ended July 31, 2022
(1) Consolidated financial results
In the consolidated fiscal year ended July 31, 2022 (the “current fiscal year”), the long-implemented action restrictions
to prevent the spread of COVID-19 were finally eased in late March and there were signs of normalization in economic
activities. However, the Japanese economy continued to face a highly uncertain environment due to soaring global raw
material prices, prolonged escalating tensions in Ukraine, and sharp exchange rate fluctuations in addition to the respread of infection due to the emergence of mutant strains of COVID-19.
Under such circumstances, Premier Anti-Aging Co., Ltd. (“the Company”) and its consolidated subsidiaries (“theGroup”) have been committed to “being unique” since its establishment and have promoted the expansion of anti-aging
related business by launching multiple brands in new categories by combining our strengths in “product planningcapability” and “marketing capability” with our “subscription sales model.”In the “DUO” brand, the competitive environment intensified due to the introduction of a series of inexpensive balm
products by competitors, in addition to the slowdown of the record-setting “DUO The Cleansing Balm Black Repair.”
However, customer support for the “DUO” brand remains strong, and the brand has held the top share*1 of cleansing
sales by company and brand for three consecutive years from April 2021 to March 2022.
In the “CANADEL” brand, which is being fostered as the second earnings pillar following the “DUO” brand, theCompany has steadily increased sales of the high-priced “CANADEL Premier Zero” as the ultimate all-in-one cosmetic
and “CANADEL Barrier Fix*2,” a quasi-drug formulated with niacinamide, which is effective against skin blemishes
and wrinkles, newly launched in April in addition to the existing lineup, under the strategy of “proposing all-in-one
cosmetics to meet the time-saving needs of the younger generation.” As a result, annual sales of CANADEL exceeded
5 billion yen in the three years after its launch.
In late March, the Company horizontally deployed the brand nurturing know-how gained from “DUO” and“CANADEL” to launch a new hair care brand, “clayence,” targeting the young generation with gray hair. The “clayence”
brand has acquired more than 200,000 new customers in the first four months since its launch, and the Company expects
it to grow as a new revenue driver.
In the mail-order sales business, the acquisition of new customers slowed temporarily in the first quarter to comply
with restrictions on advertising, but from the second quarter onward, the acquisition of new customers by multiple
brands progressed steadily from the “DUO” centered acquisition, and steady progress was made in building a growth
foundation in the next fiscal year.
As a result of the above activities, net sales for the period amounted to 33,911,903 thousand yen (up 3.3% year-onyear), operating profit was 2,414,318 thousand yen (down 48.4% year-on-year), ordinary profit was 2,572,326 thousandyen (down 44.7% year-on-year), and profit attributable to owners of the parent was 1,424,422 thousand yen (down
49.0% year-on-year).
Note that descriptions by segment are omitted, as the Group has a single business segment engaged in manufacturing
and sale of cosmetics.
*1 “Cleansing Survey (Sales by Brand),” surveyed in April 2022, by TPC Marketing Research Corp.
*2 Trade name: Medicated Barrier Fix (Quasi-drug)(2) Consolidated financial position
Assets, liabilities and net assets at the end of the current fiscal year were as follows.
(Assets)
Total assets at the end of the current fiscal year decreased by 770,885 thousand yen from the end of the previous fiscal
year to 12,300,447 thousand yen.
Current assets decreased by 962,946 thousand yen from the end of the previous fiscal year to 11,516,933 thousand yen.
This was mainly due to a decrease of 3,087,787 thousand yen in cash and deposits, a decrease of 327,717 thousand yen
in accounts receivable - trade, an increase of 1,392,868 thousand yen in finished goods, an increase of 269,191 thousand
yen in raw materials and supplies, and an increase of 235,691 thousand yen in prepaid expenses.
2Non-current assets increased by 192,061 thousand yen from the end of the previous fiscal year to 783,514 thousand
yen.
This was mainly due to a decrease of 10,257 thousand yen in property, plant and equipment, an increase of 116,661
thousand yen in intangible assets due to investment in software, etc. and an increase of 85,656 thousand yen in
investments and other assets due to an increase in leasehold deposits, etc.
(Liabilities)
Total liabilities at the end of the current fiscal year decreased by 2,215,788 thousand yen from the end of the previous
fiscal year to 3,952,427 thousand yen.
Current liabilities decreased by 2,371,289 thousand yen from the end of the previous fiscal year to 3,220,541 thousand
yen.
This was mainly due to a decrease of 400,224 thousand yen in accounts payable - other and a decrease of 1,555,478
thousand yen in income taxes payable.
Non-current liabilities increased by 155,501 thousand yen from the end of the previous fiscal year to 731,886 thousand
yen.
This was mainly due to an increase of 155,264 thousand yen in long-term borrowings.
(Net Assets)
Net assets at the end of the current fiscal year increased by 1,444,903 thousand yen from the end of the previous fiscal
year to 8,348,020 thousand yen.
This was mainly due to an increase of 1,408,716 thousand yen in retained earnings.
As a result, the equity ratio was 67.9%.
(3) Consolidated cash flows
Cash and cash equivalents (“net cash”) at the end of the current fiscal year amounted to 2,963,167 thousand yen(deceased by 3,088,987 thousand yen from the end of the previous fiscal year).
The status of cash flows and their factors during the current fiscal year are as follows.
(Cash flows from operating activities)
Net cash used in operating activities in the current fiscal year amounted to 3,322,340 thousand yen (cash inflow of
2,753,427 thousand yen in the previous fiscal year). The major factors of cash inflows included recording of profit
before income taxes of 2,572,326 thousand yen, while the major factors of cash outflows were increase in inventories
of 1,662,060 thousand yen, decrease in accounts payable - other of 391,318 thousand yen, decrease in accrued
consumption taxes of 521,607 thousand yen and income taxes paid of 2,591,984 thousand yen.
(Cash flows from investing activities)
Net cash used in investing activities in the current fiscal year amounted to 297,682 thousand yen (cash outflow of
180,826 thousand yen in the previous fiscal year). The major factors of cash inflows included proceeds fromcancellation of insurance funds of 76,752 thousand yen, while the major factors of cash outflows were payments forleasehold and guarantee deposits of 161,476 thousand yen and purchase of intangible assets of 176,887 thousand yen.
(Cash flows from financing activities)
Net cash provided by financing activities in the current fiscal year amounted to 501,623 thousand yen (cash inflow of
1,584,830 thousand yen in the previous fiscal year). The major factors of cash inflows were proceeds from long-termborrowings of 474,000 thousand yen and net increase in short-term borrowings of 390, 000 thousand yen, while themajor factors of cash outflows included repayments of long-term borrowings of 362,184 thousand yen.
(4) Future outlook
Looking ahead, amid the impact of COVID-19 remaining severe, the outlook of the economy is expected to remain
uncertain due to rising energy prices and raw material prices, as well as fluctuations in financial and capital markets
amid the global financial tightening. On the other hand, although a moderate recovery is expected in the domestic
cosmetics market, a full-fledged recovery of highly desirable consumer goods such as skincare products is expected totake time, as demand polarization is developing due to well-rounded consumption in response to soaring prices.
Under these circumstances, the “DUO” brand, which has entered a mature phase in the cleansing market, will maintainits position as the No. 1 cleansing brand in terms of sales, while transforming itself from a cleansing brand to a skincare3brand through the development of skincare products other than balms and the development of core products.
As for the “CANADEL” brand that is being fostered as the second earnings pillar, the Company will implement
measures to increase awareness of the brand through both digital and mass marketing in order to further expand thescale of the brand and broaden its customer base. The Company will also work to increase profit generation byintroducing appealing quasi-drug products, value-added limited edition products and refill products.
In addition, the Company will continue to focus on acquiring new customers through mail order sales for our new haircare brand “clayence,” which targets the young generation with gray hair, and the Company will also increase awarenessof the brand through a media mix strategy utilizing mass marketing such as TV commercials and increase the numberof distribution outlets to expand sales at newly launched retail outlets.
With these endeavors, the Company expects to achieve consolidated net sales of 37,000 million yen (up 9.1% year-onyear), operating profit of 3,000 million yen (up 24.3% year-on-year), ordinary profit of 2,985 million yen (up 16.0%
year-on-year) and profit attributable to owners of parent of 1,820 million yen (up 27.8% year-on-year) for the fiscal
year ending July 31, 2023.
The earnings forecast and other forward-looking statements contained in this document are based on information
currently available to, and certain assumptions that are deemed to be reasonable by the Group. Actual results may differ
from the forecast due to various factors. When COVID-19 will be contained and to what extent it will affect going
forward may vary greatly, and the Company will promptly disclose any events that may affect the Group's businessresults.

2. Basic principle on the choice of accounting standards
The Group has adopted Japanese GAAP for accounting standards, in consideration of comparability of financial
statements from period to period and between companies. As for the adoption of IFRS (International Financial
Reporting Standards), the Group will appropriately consider it by taking into account the domestic and international
circumstances.

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

Current fiscal year

(As of July 31, 2021)(As of July 31, 2022)

AssetsCurrent assets
Cash and deposits
Accounts receivable - tradeFinished goods
Raw materials and supplies
Prepaid expense
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Vehicles, net
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Software
Software in progress
Right to use facilities
Other
Total intangible assets
Investments and other assets
Leasehold deposits
Deferred tax assets
Investment securities
Long-term prepaid expenses
Insurance funds
Other
Total investments and other assets
Total non-current assets

6,061,056
3,399,564
2,391,946
307,203183,217
136,892

2,973,269
3,071,846
3,784,814
576,394
418,908
691,698

12,479,879

11,516,933

91,3293,559
18,016492
7,104

79,8742,374
27,504
492-

120,503110,246

115,648
27,445
6,511-

243,431
10,611
6,360
5,864

149,605

266,267

124,551
128,578
10,006
10,18941,058
6,958

279,952
80,30519,99020,4006,350

321,343

407,000

591,453783,514

13,071,332

12,300,447

810,024
365,562
1,968,509
1,721,202
521,60753,92559,642
8,491
82,864435,845
390,000
322,114
1,568,285
165,723
18,607
319,964

Total current liabilities
Non-current liabilities
Long-term borrowings
Asset retirement obligations

5,591,830

3,220,541

545,850
30,535

701,11430,772

Total non-current liabilities
Total liabilities

576,385
6,168,215

731,886
3,952,427

Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for point card certificates
Provision for sales returns
Other

5

(Thousands of yen)Previous fiscal year

Current fiscal year

(As of July 31, 2021)(As of July 31, 2022)

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

6

1,348,130
1,348,130
4,213,510(1,120)1,351,544
1,351,544
5,622,227(1,313)

6,908,650

8,324,004(5,533)24,016(5,533)
6,903,117
13,071,332

24,016
8,348,020
12,300,447

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

Current fiscal year

(From August 1, 2020

(From August 1, 2021

to July 31, 2021)

to July 31, 2022)

Net sales

32,815,296

33,911,903

Cost of sales

6,382,853

7,282,948

Gross profit
Reversal of provision for sales returns

26,432,443
5,935

26,628,955-

Provision for sales returns

8,491

-

Gross profit - net

26,429,887

26,628,955

Selling, general and administrative expenses

21,749,810

24,214,636

Operating profit

4,680,076

2,414,318

286
20,045-

1,392
35,693
136,111

Non-operating income
Interest income
Surrender value of insurance policies
Profit on currency exchange
Miscellaneous income

1,348

2,683

Total non-operating income

21,680175,881

14,84522,051

14,879-Non-operating expenses
Interest expenses
Listing expenses
Miscellaneous losses

11,721

2,994

Total non-operating expenses

48,61817,873

4,653,138

2,572,326

Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets

73-

Total extraordinary losses

73-

Profit before income taxes

4,653,064

2,572,326

Income taxes - current

1,899,829

1,099,631

Income taxes - deferred(40,392)

48,272

Total income taxes

1,859,436

1,147,904

Profit

2,793,627

1,424,422

Profit attributable to owners of parent

2,793,627

1,424,422

7

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

Current fiscal year

(From August 1, 2020
to July 31, 2021)(From August 1, 2021
to July 31, 2022)

ProfitOther comprehensive income
Foreign currency translation adjustment

2,793,627

1,424,422(5,533)29,549Total other comprehensive income(5,533)29,549Comprehensive income

2,788,094

1,453,971

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

2,788,094-

1,453,971-

8

(3) Consolidated statement of changes in shareholders' equity
Previous fiscal year (From August 1, 2020 to July 31, 2021)(Thousands of yen)
Accumulated othercomprehensive income

Shareholders' equity

Share
capitalBalance at beginning of period
Cumulative effect ofchanges in accounting policies
Balance at beginning of period reflectingchanges in accounting policies
Changes of items during period
Issuance of new shares
Profit attributable to owners of parent
Purchase of treasury shares
Net changes in items other than shareholders'equityTotal changes of items during period
Balance at end of period

15,000CapitalsurplusRetainedearnings

15,000Total
shareholders'equityTreasuryshares1,419,883-

Total
accumulated
othercomprehensive
incomeForeigncurrencytranslation
adjustment

1,449,883

Total
net assets--

1,449,883-

15,00015,0001,333,130

1,333,130

1,419,883-

1,449,883(1,120)2,666,260
2,793,627(1,120)2,793,627

1,333,130
1,348,130

1,333,130
1,348,130

2,793,627
4,213,510(1,120)(1,120)5,458,767
6,908,650--

1,449,883
2,666,260
2,793,627(1,120)(5,533)(5,533)(5,533)(5,533)(5,533)(5,533)(5,533)

5,453,233
6,903,117

Current fiscal year (From August 1, 2021 to July 31, 2022)(Thousands of yen)
Accumulated othercomprehensive income

Shareholders' equity

Balance at beginning of period
Cumulative effect ofchanges in accounting policies
Balance at beginning of period reflectingchanges in accounting policies
Changes of items during period
Issuance of new shares
Profit attributable to owners of parent
Purchase of treasury shares
Net changes in items other than shareholders'equityTotal changes of items during period
Balance at end of period

SharecapitalCapitalsurplus1,348,130

1,348,130

Retainedearnings

4,213,510

Treasuryshares(1,120)(15,705)
1,348,130

1,348,130

3,414

3,414

4,197,805

3,414
1,351,544

1,424,422
5,622,227

9

6,908,650

Foreigncurrencytranslation
adjustment(5,533)

Total
accumulated
othercomprehensive
income(5,533)(15,705)(1,120)6,892,945

(192)

6,829
1,424,422(192)

1,424,422

3,414
1,351,544

Total
shareholders'equity(192)(1,313)

1,431,059
8,324,004

Total
net assets

6,903,117(15,705)(5,533)(5,533)

6,887,411
6,829
1,424,422(192)

29,54929,54929,54929,54924,01629,54924,016

1,460,608
8,348,020

(4) Consolidated statement of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for sales returns
Increase (decrease) in provision for point card certificatesInterest income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Decrease (increase) in prepaid expenses
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest received
Interest paid

Previous fiscal year

Current fiscal year

(From August 1, 2020

(From August 1, 2021

to July 31, 2021)

to July 31, 2022)

4,653,064
44,0292,556
47,700(286)
14,845(894,849)(713,366)(253,687)
319,331
18,741(116,930)
442,568
8,471
3,572,189
286(14,144)2,572,326
85,453(1,392)
14,879327,717(1,662,060)(374,179)(391,318)
66,899(235,619)(521,607)(597,387)(716,288)
1,391(15,459)

Income taxes paid

(804,903)(2,591,984)

Net cash provided by (used in) operating activities

2,753,427(3,322,340)

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Purchase of investment securities(1,200)(4,870)(70,261)(121,042)(16,423)
43,126(10,006)(1,200)(26,452)(176,887)(161,476)
1,566
76,752(9,984)

Other, net

(147)

-

Net cash provided by (used in) investing activities(180,826)(297,682)

Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Purchase of treasury shares
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents(1,050,000)
330,000(360,309)
2,666,260(1,120)1,584,830
4,157,431

390,000
474,000(362,184)(192)
501,623(3,118,399)

Cash and cash equivalents at beginning of period

1,894,719

6,052,155

Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period

10429,412

6,052,155

2,963,167

(5) Notes to consolidated financial statements(Notes on going concern assumption)
Not applicable(Changes in accounting policies)(Change in inventory valuation method)
The Group previously stated inventories at cost determined by the weighted average method. However, the cost method
has been changed to the cost method based on the moving average method effective from the current fiscal year.
The purpose of this change is to calculate periodic profit and loss more promptly and appropriately in conjunction with
the introduction of the core system.
Since the impact of this change is immaterial, the change has not been applied retroactively. The effect of this changeon the consolidated financial statements for the current fiscal year is not material.
(Application of accounting standard for revenue recognition and others)
The Group adopted the “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan[ASBJ] Statement No. 29, March 31, 2020, the “Accounting Standard for Revenue Recognition”), etc. from the
beginning of the current fiscal year, and recognized revenue at the amount expected to be received in exchange for thepromised goods or services when control of the promised goods or services has been transferred to the customer. In
accordance with the alternative treatment prescribed in Paragraph 98 of the “Guidance on Accounting Standard for
Revenue Recognition,” revenue is recognized upon shipment if the period from the time of shipment to the time whencontrol of the product is transferred to the customer is a normal period of time for the sale of the product.
The main changes resulting from the application of the Accounting Standard for Revenue Recognition are as follows.
(1) Revenue recognition on sales returns
The “provision for sales returns,” which was previously recorded in current liabilities based on the gross profit
equivalent of the portion of sales expected to be returned, has been changed to not recognize the sales and cost of sales
equivalent of the products expected to be returned, and the refund liability is included in “other” under current liabilities
and the returned goods asset is included in “other” under current assets.
(2) Revenue recognition related to point system
With respect to the point system, in which points are awarded to customers based on their purchases, the Grouppreviously accounted for the amount expected to be used in the future as a “provision for point card certificates” inorder to prepare for future use of points. However, when such points provide customers with significant rights, theCompany has changed its method of identifying them as performance obligations and deferring the recognition ofrevenue, and it is presented as "contract liabilities" in "other" under current liabilities from the current fiscal year.
In accordance with the transitional treatment prescribed in the proviso of Paragraph 84 of the Accounting Standard for
Revenue Recognition, the cumulative effect of retrospective application of the new accounting policy prior to thebeginning of the current fiscal year is added to or deducted from retained earnings at the beginning of the current fiscal
year, and the new accounting policy is applied from such beginning balance.
As a result, net sales decreased by 64,827 thousand yen, cost of sales decreased by 2,287 thousand yen, gross profit
decreased by 67,785 thousand yen, and operating profit, ordinary profit and profit before income taxes increased by
8,252 thousand yen, respectively. The balance of retained earnings at the beginning of the current fiscal year decreased
by 15,705 thousand yen. The impact of this change on the per share information for the current fiscal year was notmaterial.
In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Accounting Standard for Revenue
Recognition, no reclassification has been made for the previous fiscal year using the new presentation.

11

(Application of accounting standard for calculation of fair value and others)
The “Accounting Standard for Calculation of Fair Value” (ASBJ Statement No. 30, July 4, 2019, the “AccountingStandard for Calculation of Fair Value”), etc. are applied from the beginning of the current fiscal year, and in accordancewith the transitional treatment set forth in Paragraph 19 of the Accounting Standard for Calculation of Fair Value andParagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Grouphas decided to apply prospectively the new accounting policies established by the Accounting Standard for Calculationof Fair Value, etc. This change has no impact on the consolidated financial statements.
(Segment information, etc.)(Segment information)
The information is omitted as the Group has a single business segment engaged in manufacture and sale of cosmetics.
(Related information)
Previous fiscal year (From August 1, 2020 to July 31, 2021)
1. Information by product and service
The information is omitted as the Group’s sales are all related to the business of manufacturing and selling cosmetics.
2. Information by area
(1) Net sales
The information is omitted as sales to external customers in Japan account for more than 90% of the net sales in the
consolidated statements of income.
(2) Property, plant and equipment
The information is omitted as the amount of property, plant and equipment located in Japan accounts for more than
90% of the amount of property, plant and equipment in the consolidated balance sheet.
3. Information by main customers
Name of customers
Ida Ryogokudo Co., Ltd.

Net sales
7,894,396(Thousands of yen)
Related segments
Manufacture and sale of cosmetics

Current fiscal year (From August 1, 2021 to July 31, 2022)
1. Information by product and service
The information is omitted as the Group’s sales are all related to the business of manufacturing and selling cosmetics.
2. Information by area
(1) Net sales
The information is omitted as sales to external customers in Japan account for more than 90% of the net sales in the
consolidated statements of income.
(2) Property, plant and equipment
The information is omitted as the amount of property, plant and equipment located in Japan accounts for more than
90% of the amount of property, plant and equipment in the consolidated balance sheet.
3. Information by main customers
Name of customers
Ida Ryogokudo Co., Ltd.

Net sales
6,683,625

12(Thousands of yen)
Related segments
Manufacture and sale of cosmetics

(Information on impairment losses on fixed assets by reportable segment)
Not applicable(Information on amortization and unamortized balance of goodwill by reportable segment)
Not applicable(Information on gain on negative goodwill by reportable segment)
Not applicable(Per share information)
Previous fiscal year
(From August 1, 2020
to July 31, 2021)
791.65 yen
326.87 yen
326.38 yen

Net assets per share
Basic earnings per share
Diluted earnings per share

Current fiscal year
(From August 1, 2021
to July 31, 2022)
957.30 yen
163.35 yen
163.11 yen

Notes: 1. The Company conducted a 20-for-1 stock split of its common shares as of August 29, 2020. In accordancewith this, basic earnings per share and diluted earnings per share are calculated on the assumption that thestock split was conducted at the beginning of the fiscal year ended July 31, 2021.
2. Diluted earnings per share for the previous fiscal year is calculated by using the average share price for theperiod from the initial listing date to the end of the previous fiscal year, deeming it to be the period-average
share price, as the Company was listed on the Tokyo Stock Exchange Mothers on October 28, 2020.
3. The basis for calculating net assets per share is as follows.
(Thousands of yen)
Current fiscal year
Previous fiscal year
(As of July 31, 2021)(As of July 31, 2022)
Total net assets
6,903,117
8,348,020
Amount deducted from total net assets
Net assets related to common shares at the end of the6,903,117
8,348,020
periodNumber of common shares used in the calculation of net
8,719,911 shares
8,720,379 shares
assets per share at end of period13

4. The basis of calculating basic earnings per share and diluted earnings per share is as follows.
(Thousands of yen)
Current fiscal year
Previous fiscal year
(From August 1, 2020
(From August 1, 2021
to July 31, 2021)
to July 31, 2022)
Basic earnings per share
Profit attributable to owners of parent
Amount not attributable to common shareholders
Profit attributable to owners of parent for common shares
Average number of common shares during period

2,793,627

1,424,422--

2,793,627

1,424,422

8,546,495 shares

8,720,265 shares--

12,981 shares(12,981 shares)

12,707 shares(12,707 shares)--

Diluted earnings per share
Adjustment to profit attributable to owners of parent
Increase in the number of common shares(Of which, share subscription rights)
Description of dilutive shares not included in thecalculation of diluted earnings per share due to the absenceof dilutive effects(Significant subsequent events)
Not applicable14