FY2022-2024

Progress of the Medium-Term
Management Plan
May 13, 2024
PARIS MIKI HOLDINGS Inc.
Securities Code

7455

01
Overview and Progress of
the Medium-Term Management Plan

© PARIS MIKI HOLDINGS Inc.

1

Overview of Medium- and Long-Term Management Target

PurposeEnrich each and every one of our customers with“tokimeki*” and “anshin**”* excitement in Japanese** peace of mind in JapaneseLong-term
management target

Medium-term
management plan

VisionNumerical target

Become a world-class “hospitality brand” in 2030

FY2024

Net sales

JPY

51,067

Tokimeki *● Creating stores tailored to customers and local
communities● Real experiences encompassing “seeing,” “hearing,”and “touching” at actual stores● Fashion proposals with a wide selection of products● Provide positive audio life caremillionOperating income

JPY

2,117

millionAnshin **● Provide the highest standard of medical care andhospitality overseas● Reciprocal utilization of Japanese and overseas
know-how● Strengthen “seeing” and “hearing” consulting● Nurture human resources to support “peace of mind”● Environmentally conscious corporate activities© PARIS MIKI HOLDINGS Inc.

2

Policy of Medium- and Long-Term Management Target

FY
2022-2024
Phase

1

Management innovation andprofit-bearing structure

Stabilize profits,
actively makeefforts for new
business areas

FY2025-2027
Phase

2

FY
2028-2030
Phase

3

Shareholder returns alignedwith consolidated sales
growth and profit
contributions and profit
growth from new businessareas

Key Measures

Domestic

GrowthGrowth• Closing of unprofitable stores, etc.
completed in Phase 1, increase numberof stores

Growth• Closing of unprofitable stores and consolidation of aging stores
Improvement • CX* implementation, operational streamlining, legal compliance,system investments• Improvement in business performancedue to CX* implementation
Improvement • Improve earnings by strengthening
product lineup of eyeglasses, sunglasses,
etc.

• Active investment in Southeast Asia, which is entering ademographic dividend period, developing low-cost, high-return
stores• Accelerate collaboration with medical institutions to differentiate
through value-added offerings

Growth• Operate three or more local ophthalmic
hospital management companies• Expand stores for affluent customers• Strengthen product lineups that combine
Japanese quality with local design

GrowthImprovement• Improve profitability and efficiency per
store

Improvement

GrowthOverseas• Aggressive store openings and strategic renovating focused onlodge-type stores• Promote nationally-accredited certification for optical technicians

Improvement • Expedite closure of loss-making stores

Improvement* Customer Experience• Sales growth through greatercollaboration with medical institutions• Improve profitability and efficiency per
store through CX* improvement and DX• Grow solid profit base of ophthalmic
hospital management• Expand new locations in Southeast
Asia• Make all overseas subsidiaries
profitable© PARIS MIKI HOLDINGS Inc.

3

Medium-Term Management Plan: Numerical Targets
Aim to achieve operating income of JPY 2.1 billion in FY2024, the final year of the management innovation stage(Phase 1), exceeding the initial plan
Ensure implementation of various measures, including CX* improvement, to achieve medium- and long-term
Medium- and long-term
management targets* Customer Experience
Phase 1
management target(JPY mil.)

FY2021

FY2022

FY2023

FY2024
Forecast

FY2030
Forecast

Net sales

44,09247,40049,91251,06765,000

-500

732

1,928

2,117

6,550

Net profit-1,108

501

1,690

1,380

4,389

EPS (JPY)

JPY -21.82

JPY 9.88

JPY 33.24**

JPY 86.4

-4.0%

1.8%

5.8%

4.7%

10% target

Operating income

ROE

JPY 24.62** The earnings per share forecast has been revised due to a revision of the average number of shares following the disposal of treasury sharesas consideration for the absorption-type company split implemented on 1 July 2024.
© PARIS MIKI HOLDINGS Inc.
4

Previous Numerical Targets and Results of Phase 1 of the Medium-Term Management Plan

Exceeded the numerical targets of Phase 1 (FY2024) of the medium-term management plan in FY2023
Formulate new numerical targets for FY2024, the final year of Phase 1
Results of Phase 1 of medium-term management
plan (JPY 100 mil.)Initial target for Phase 1 of medium-term
management plan (JPY 100 mil.)(FY2022–FY2024)(FY2022–FY2024)

Net sales

Net sales

Operating income

Operating income

Phase 1

Phase 1

Exceeded target

440

483

467

500

499

474

440

19.2

15.1
7.4

-5.0
2021

10.2

Modified target

510

21.1

7.3

-5.0
2022

2023

2024

(FY)

2021

2022

2023

2024

(FY)

© PARIS MIKI HOLDINGS Inc.

5

Review of Second Year of Phase 1 (FY2023)

FY2022

Net sales

JPY

Operating income

47,400 million
JPY

Actual Results

FY2023 Initial Target

JPY

732 million

48,300 million

JPY

1,025 million

JPY

49,912 million

JPY

1,928 million

FY2023 Target••••

Domestic

Open 20 stores
Total of 335 new and renovated stores
1,000 recipients of the nationally-accredited certificationof optical technician
Improved business performance due to increase in number ofcustomers and net sales

Cost-effective sales promotion activities

Achievements

•
•
•
•

Opened 10 stores
Total of 347 new and renovated stores
994 recipients of the nationally-accredited certification of optical technician
Total number of customers 99.5%, retail sales 105.3% compared withprevious year••

Proactive approach to inbound demand, mainly for sunglasses
Ensure profitability per store through planned store openings, closings, andrenovating
Preparation for expansion of audio business (hearing aids)•

Overseas

Rapid demand recovery due to the settling down of COVID-19
Thorough product preparation in anticipation of demand forsunglasses

Achievements and Challenges in FY2023

Challenges• Prompt decision to close unprofitable stores and establish a
profitable structure• Differentiate from low-priced stores by collaborating with medical
institutions, mainly in Southeast Asia
• Further strengthen collaboration with medical institutions throughstores in Cambodia and the Philippines scheduled to open in
FY2023

Factors, etc.

Achievements• Opened three stores, closed 16 stores• Ophthalmic services attached: opened Cambodia store and third store in
the Philippines•

Challenges•

We need to more quickly liquidate unprofitable stores due to deteriorating
market conditions
Priority on investments in labor and equipment costs – delays in opening
ophthalmic hospital in the Philippines© PARIS MIKI HOLDINGS Inc.

6

02
Domestic Business© PARIS MIKI HOLDINGS Inc.

7

Domestic Market Environment
By 2030, second-generation baby boomers will reach their 50s, and the population of those aged 65
or over will increase to just under 37 million
High potential needs for multifocal lenses and hearing aids
Projected Trends in the Composition of Japan’s Population (based on the basic resident ledger, total population)

2020
Middle senior

Second-generation
baby boomers

Market Forecast*
Eyeglasses

Hearing aids

*Market forecast based on our estimates

JPY

2030

2045

19

19

19

18

18

18

17

17

17

16

16

16

15

15

15

14

14

14

13

13

13

12

12

12

11

11

11

10

10

10

9

9

9

8

8

8

7

7

7

6

6

6

5

5

5

4

4

4

3

3

3

2

2

2

1

1

1

403 billion

JPY

450 billion

90 billion

JPY

120 billion

JPY

Unit: 10,000 people

Source of data: Population, demographics and number of households based on the basic resident ledger (Ministry of Internal Affairs and Communications)

480 billion
JPY 140 billion
JPY© PARIS MIKI HOLDINGS Inc.

8

Market Environment
In the eyeglasses market, people aged 45 and over account for about 67% of the market in terms of value

Unit price increases with age due to the need for high-function lenses such as progressive lenses (Multifocal)

Eyeglass Market in Japan (FY2022)
Composition ratio

Annual populationof people buying
eyeglasses

Age group

Population by age

Composition ratio(Age)(1,000 people)

5-14

10,254

8.5%

2,072

10.6%

30,396

7.4%

14,676

15-24

11,779

9.7%

1,792

9.2%

24,3796.0%

13,60825-34

12,859

10.7%

2,042

10.5%

32,988

8.1%

16,151

35-44

15,152

12.6%

2,653

13.5%

46,076

11.3%

17,36845-54

18,897

15.6%

3,367

17.2%

63,031

15.4%

18,72055-64

15,513

12.9%

2,234

11.4%

49,54812.1%

22,18065-74

16,869

14.0%

2,634

13.5%

74,06818.1%

28,12275 and over

19,366

16.0%

2,756

14.1%

88,54821.6%

32,131

Total

120,689

100.0%

19,549100.0%

409,036

100.0%

20,92445 and over

70,64558.5%

10,991

56.2%

275,195

67.3%

25,039(1,000 people)

Compiled by our Company based on data from Gankyo DB 2023 (Gankyo Publishing Co., Ltd.)

Market size

Composition ratio(JPY mil.)Average unit price(JPY)© PARIS MIKI HOLDINGS Inc.

9

Eyeglass Retail Business Tokimeki* and Anshin**
We offer “tokimeki* and anshin**” to customers through people, stores and products* excitement in Japanese** peace of mind in Japanese

Tailor to each and every
customer

PeopleStoredevelopment
tailored to eachregionStore

Product
Tokimeki *Extensiveproduct lineup

Anshin **Offer “tokimeki* and anshin**”tailored to each and every
customer© PARIS MIKI HOLDINGS Inc.

10

Customer Experience (CX) at the center of management
Review key measures to achieve medium- and long-term management targets based on the excess achievement in Phase 1

Employeecommunication
strategyStorestrategyDXstrategyInteraction between new employees and board members

Summer festival at all lodge-type stores

Tokimeki*
•
•
•
•
•
•

Anshin**New discoveries and experiences
Cafe corner and audio corner
Staff with good taste and smiles
Fashionable productsState-of-the-art technology
In-store live performances and eventsBest
customerexperience

Marketingstrategy• Friendly and highly-skilled staff• Customer care and customers’ trust• Reasonable pricing (easy-to-understandpricing)• Increase the revisit rate through “Opera
Club”***• Collaboration with medical institutions• Environmentally conscious corporate activities

Career pathstrategy
Product
strategy

Salesstrategy

Yokosuka Lodge Outlet Live music performance

Short-term career path overseas* excitement in Japanese** peace of mind in Japanese*** Opera Club: Membership service for PARIS MIKI customers© PARIS MIKI HOLDINGS Inc.

11

Key Measures (1): Improve Employee Skills and Customer Satisfaction
Improvement of customer satisfaction (CX* improvement) is our top priority, and we aim to grow as a result of customer satisfaction
Establish a system to assign certified optical technicians to regions with high needs, with a target of 1,200 certified technicians by FY2024
Target 305 certified hearing aid technicians, building a system that allows customers to purchase hearing aids with peace of mind

Development of eyeglass and hearing aid
professionals

Customer satisfaction is paramount
Customer satisfaction ≥ Net sales

Certified optical technicians

Certified hearing aid technicians

Improve customer satisfaction by improving skills

1,200
994

• Improve vision measurement and adjustment techniques through various
types of training and certification• Aim to increase the number of certified optical technicians to 1,200 andcertified hearing aid technicians to 305 in FY2024

746• Improve customer satisfaction through the use of our unique “Eye Pointer”
and counseling (100% implementation of Visual Life Care)

250

2022

275

2023

305

2024

• Implement projects and training to improve CX*, strengthen improvement
activities in stores, and Introduce a system to evaluate staff on improving
customer satisfaction• Introduce NPS (Net Promoter Score) to reflect customer feedback
promptly and directly into store operations* Customer Experience© PARIS MIKI HOLDINGS Inc.

12

Key Measures (1) (Supplemental): Nurturing of Specialists
Nurture specialists in eyeglasses and hearing aids

Employees with knowledge, technique, and communication skills
provide customers with the optimal eyeglasses and hearing aids

Miki Meister

76 people
Technical school for optometry
and medical technology

Visionmeasurement 22 people

Hearingaids 29 people

Adjustment

The PARIS MIKI Group

25 people

has 994 certified optical technicians.
*As of November 2023, in-house research

One yearMiki Meister

Miki Meister candidate
Recommendation system fromarea managers (based on
knowledge, skills, customer
hospitality, staff development
and other competencies)• Regular meeting• Group training• Written examination

World Optical College• Practical examination• Personnel interview

Internal and external training
instructors
Certification training instructor
Staff guidance and instructing

Certified optical technician (nationallyaccredited certification)

994 people

Number of certified hearing aid technicians

275 people

Number of WOC graduates

102 people

Number of WOC correspondence
graduates

787 people

Specialist training and advanced training
Training for Miki Meistercandidates
Training for certification of opticaltechnicians

Training for unification of practical skills, roles, and direction of activities
Instructors dispatched from WOC
Training for obtaining the nationally-accredited certification of “opticaltechnician”
Miki Meister serves as instructor

Basic training (first and second year of employment)
Power-up training

Continuous improvement of skills

Skill-up training

One-on-one training in practical skills of vision measurement andadjustment under the guidance of Miki Meisters

New employee training

Basic training in vision measurement, adjustment, productknowledge and customer service

Specialist

Established a curriculum for training
specialists in cooperation with a technicalschool for optometry and medical technology

Advanced

Basic© PARIS MIKI HOLDINGS Inc.

13

Key Measures (2): Increase Time Spent on Serving Customers
by Improving Operational Efficiency
DX and standardization of store operations to improve efficiency of store operations and reduce time spent on non-customer service by half

Aim to increase customer satisfaction and added value by increasing time spent on serving customers and number of customers served by store staff

Improve customer satisfaction by increasing efficiency
Time spent on serving customers by store staff

Back-office operations• Improve personnel efficiency through workflow improvement and DX, and appropriate
allocation of personnel to stores• Computerize customer medical records to streamline the entry and retrieval of medical
records and increase time spent on serving customers (scheduled to be implemented
gradually starting April 2024)

Time spent on serving customers• Standardize operations to improve customer service from the bottom up

10%
40%

40%

70%

• Install self-measuring devices and other state-of-the-art vision measuring equipment tostreamline the measurement time
• Introduce three-dimensional binocular frame tracing and request lens manufacturers toprocess the lenses, reducing processing work to be done by store staff

FY2023 Results

Future Plan

20%

• Renovate store layout to reduce blind spots by reducing partitions, making it easier forcustomers to approach staff• Reduce the number of seated counters to make it more efficient to deal with customers
who only stay for a short time

20%
Eyeglass processing operations

Promote operational efficiency and optimization
targeting the final year of Phase 2 (FY2027)•Self-vision-measuring
instrument•Three-dimensional binocular
frame tracing© PARIS MIKI HOLDINGS Inc.

14

Key Measures (3): Increase the Number of Customers Visiting Stores (Store Measures)Store consolidation and the liquidation of unprofitable stores was completed in FY2023, and from FY2024 onward,
the number of stores will be increased by reinforcing renovating and store openings
Plan to open 30 new or relocated stores per year, primarily lodge-type, maison-type and entertainment-type stores, and strategically renovate* 30 stores per year

630

635

Increase

Store strategy
Number ofStores(End of FY2023)(End of FY2024)(End of FY2027)• Open around 30 new or relocated stores annually, with plans to open or strategicallyrenovate more than 100 stores by the end of the final year of Phase 2 (FY2027)• Open new and relocated stores, primarily entertainment-type stores in metropolitan
areas and lodge-type stores in suburbs and core cities

Un-remodeled

Un-remodeled

283

250

• Plan to open stores in areas where many inbound customers are expected to visit inJapan, as well as stores specializing in hearing aids and other products with clear
targets• Store renovation includes replacing fixtures, reducing partitions, and changing thelayout to make it easier for customers to find and approach staff

Remodeled
Remodeled• Increase the number of stores with spacious waiting areas and children’s spaces tomake waiting time more comfortable

385

347

• Expand the number of new store visitors through community events such as in-store
live performances and summer festivals

2023

2024

2027

(FY)

2023

2024

Cumulative total by the end of
FY2027

Number ofrenovated stores

28

30

100 and overNumber of newly
opened stores

1030

100 and over

*Strategic renovating: Renovation including store reconstruction and interior refurbishment© PARIS MIKI HOLDINGS Inc.

15

Key Measures (3) (Supplemental): New Store Openings and Relocations, Strategic Renovation
Since FY2010, 347 new store openings and strategic renovating efforts have been carried out
in accordance with estimated net sales and regional and location characteristics
Successfully attracted new customers by opening and renovating stores with unique features such as entertainment-type and lodge-type stores
Large

UnrenovatedStores• Consider estimatedsales after renovating
and regional
characteristics, etc.

Entertainment-type Stores

32 stores mainly in regional core cities

Focus on main streets of cities/areas witha million people, such as Shibuya andShinjuku

Maison-type Stores

As the region’s flagship store, it offers
a wide selection of products andample parking space

Respond to the needs of local
residents by opening stores in major
cities nationwide and in the suburbs ofmajor metropolitan areas

Target the fashion-conscious demographic

Store floor Area

• 283 stores mainly insuburbs and regional
citiesLodge-type Stores

Department Store
Eyeglass Salon
Open stores mainly in major
department stores nationwide

Product development tailored to eachstore’s customer base

Other Renovated Stores
Meet the needs of local residents by renovating and relocating existing stores

Small

Urban Areas

Suburb© PARIS MIKI HOLDINGS Inc.

16

Sales Per Store
Sales per store increased due to new store openings and renovating
Newly opened and renovated stores continued to see an upward trend in sales, with the exception ofduring the COVID-19 pandemic, and contributed to the increase in sales per store

Sales Per Store* (FY2016=100)

Sales Trends for New and Renovated Stores
Stores opened and remodeled in FY2015

Stores opened and remodeled in FY2016Stores opened and remodeled in FY2017

Stores opened and remodeled in FY2019Stores opened and remodeled in FY2020

Stores opened and remodeled in FY2021

Stores opened and remodeled in FY2018

180
130

170

COVID-19
Pandemic

125

COVID-19
Pandemic

160
150

120

140

115

130

110

120
110

105
100

100

90

95

80
2016

2017

2018

2019

2020

*Total of directly managed PARIS MIKI stores and KIMPO-DO in Japan

2021

2022

2023 (FY)

2016

2017

2018

2019

2020

2021

2022

2023 (FY)

Note: The index for stores that newly opened or were renovated is calculated by setting sales in the 12 months
following the year in which the store was opened or renovated at 100© PARIS MIKI HOLDINGS Inc.

17

Key Measures (4): Further Enhancement of Product Lineup
by Strengthening Private-Brand Products“Eyewear of Sabae” were promoted as high-quality, affordable frames made in Japan, resulting in an increase in the unit price per pair
Aim to provide wide range of products through a wide selection of PB* products centered on “Eyewear of Sabae”
and NB* products by designer brands

Product and Brand Strategy
Unit Price Per Pair

• Leveraging the strength of its manufacturing subsidiary Create three Co., Ltd.
located in Sabae, we have taken an approach to its mainstay PB products as“Eyewear of Sabae” and expanded its product lineup along with NB products(JPY)• Branded “SABAEKOKI” and “DIGNA Classic” as the best quality “Eyewear of
Sabae”

36,00035,000• Developed our in-house planned products “Balance Fit” and “PARIS MIKI
Collection” as products in the introductory price range for customers

34,000• Respond to the sustainability needs of “using quality products over a long periodof time” through O.P.T make FUKUI, a subsidiary engaged in the repair ofeyewear frames

33,00032,00031,00030,00029,00028,00027,000
2016

2017

2018

2019

2020

2021

2022

2023

2024 (FY)予想*PB: Private Brand. Products planned and developed by the Company and manufactured by Create three, a subsidiary of the Company, and subcontractors. NB: National Brand. Designer brand products purchased from manufacturers© PARIS MIKI HOLDINGS Inc.

18

Key Measures (4) (Supplemental): Wide Variety of Eyewear Frames
Taking advantage of having its own factory in Sabae, the Company offers a wide range of PB * products centered on “Eyewear of Sabae”
and NB* products, which have one of the highest volumes handled in the industry

NB (National Brand)

PB (Private Brand)

High

SABAEKOKI
DIGNA C

Wide range of national

brand eyewear frames
from casual to luxury

Style-J
Eyewearof Sabae

Price Range

Strengths unique to our own factory that can
immediately give shape to customers’ needs
In-house factory in Japan:
Create three
Only products that meet all quality standards are allowed to
be shipped
Exterior

Parts

PARIS MIKI micro-titan

PARIS MIKI
Authentic eye wear

InspectionParts
manufacturing
standards

Verification ofvariances by machine
Visual verification ofvariances

Strict numerical values
exceeding JIS standards

Assembly
Assembly
criteria for parts

Strength criteria
after assembly

Adjustment of overall
finish balance

Durability and strength
Rigorous verification
inspections

FinishSemi-fitting

Surfacetreatment
standards

Durability andcorrosion
Rigorous verification
inspections

criteria“Eyewear of Sabae”
Functionality: Balance Fit

Low

PARIS MIKI Collection*PB: Private Brand. Products planned and developed by the Company and manufactured by Create three, a subsidiary of the Company, and subcontractors.

With its own technologically advanced factory in Sabae, the“City of Glasses,” the Company offers high-quality eyewear
frames made in Japan at affordable prices.
Many brands are available for use on a variety of everyday
occasions, from formal to casual.
NB: National Brand. Designer brand products purchased from manufacturers© PARIS MIKI HOLDINGS Inc.

19

Key Measures (5): Measures for Lens
Offer “Good Eyeglasses” That Do More Than Just See
Appeal to customers with “Good Eyeglasses” based on the lineup of progressive (multifocal) lenses × measurement skills and adjustment capabilities
Organize the lineup of progressive lenses in line with the increase in the generation of people using progressive lenses and propose the optimal eyeglasses
End of FY2027

CustomerExperience
with VLC

Progressive (Multifocal) Lens Composition Ratio
Volume composition ratio (%)

Amount composition ratio (%)

100%
TargetIncrease in
number ofcustomers

VLC ratio

CustomerExperience
improvements

86.4%

As of January 2024

VLC : Visual Life Care

46.0%

46.4%

46.8%

Key Measures• Capturing the “multifocal generation” consisting of those aged 45 or older, which
accounts for about 60% of the Japanese population, with quality and technology
in lenses, measurement, and adjustment

25.8%

2021

26.8%

• Lenses are available at seven different price points for both balanced design andsoft design types, offering the optimal lens for each customer

27.3%• Visual Life Care (measurement and counseling using our unique eye pointer andother tools) to propose the optimal eyeglasses for each customer’s lifestyle
2022

2023

2024 (FY)Forecast• Increase the Visual Life Care implementation rate from 86% in FY2023 to 100%in FY2027© PARIS MIKI HOLDINGS Inc.

20

Key Measures (5) (Supplemental): Eyeglass Retail BusinessSelecting Optimal Frames and Lenses
Offer a wide range of frames and lenses and “Visual Life Care” to provide optimal frames and lenses

Step

Step

Step

Step

Step

Step

01

02

03

04

05

06

Selection offramesVision measurement andlens power determination

Selection oflensesAdjustment

Processing andfittingFinishing anddelivery

Visual Life CareWith experience ofVisual Life Care

Visual Life Care

PARIS MIKI’s unique vision measurement
and counseling
Customized vision measurement and lens power
determination based on the individual’s eye
condition and purpose of use, in addition to the
No experience ofmeasuring device
Visual Life CareOur unique measurement method “Eye Pointer”
Accurate measurement of eye andeyeglass positioning

Average Unit Price*

The pupil is positioned to maximize
the performance of the lens

UP +15%For stress-free, clear-vision
eyeglasses*Price of “with experience” customers when “no experience” is set at 100 for the period from April to December 2023

© PARIS MIKI HOLDINGS Inc.

21

Key Measures (5) (Supplemental): Eyeglass Retail Business
Wide Variety of Progressive (Multifocal) Lenses
A wide variety of lenses, firmly customized to customers’ needs and daily life

Example: First S Lansee MF

Balance Design TypeSoft Design Type

Design features

Design features• Progressive (Multifocal)
lenses that offer bothspeed of delivery andquality• Distance clear vision width→ Wide• Intermediate clear vision width→ Wide• Near clear vision width→ Wide• Reduction of sway anddistortion• Clear view

• Easy to get used toHigh

Perfect PRO

Perfect• Progressive (Multifocal)
lenses that usually takeabout one week to arrive
are available in as quickas 24 hours

Example: First S Clear Feel NEO

Significantly shorteneddelivery time for custommade lenses

Perfect PRO
24G S Class

Price Range

Perfect

Personal Fit PRO

Personal

Personal Fit
First PRO

Low

Perfect

Personal Fit PRO

24G C Class

24G H Class

Personal Fit

First

First PROFirst SFirst S

First

First

24G A Class© PARIS MIKI HOLDINGS Inc.

22

Key Measures (6): Measures for Department Stores and Eyeglass Salons(Measures for Affluent Customers)
Aim for “No. 1 share of the affluent customer market” by creating fans
KIMPODO■Provide high added value by enhancing vision measurement with state-of-the-art equipment

Plan to install in all stores (26 stores*) by the end of FY2027
Installed in eight
storesi.Profiler®
The pupils are measured in bright and dark
environments and the individual’s eye profile
is analyzed.

*Total of 26 stores affiliated with department stores and eyeglass salons: 18 operated by KIMPO-DO andeight operated by PARIS MIKI
Installed in ninestores

VISUFIT 1000/
Digital 3D
Centration high-precision measuring machine

Nine on-board cameras provide 180 view
image in one shot

Installed in 14
storesi.Terminal2
Optimizes frame and lens matching based on
the distance between the pupils, the tilt of thelens when the frame is worn, and the positionof the frame and eyes.

■Other luxury strategies• Use of owned media and introduction of reservation system• Product development focused on affluent consumers (high-end frames and lenses)• Aiming to establish a “Luxury Eye Wear Store” for the ultra-affluent• In addition to relocating sales space within the same department store, strive to relocate to lower sales floors
and establish pop up stores• Analyze the needs of affluent customers visiting Japan by their country/region and reflect them in the productmix in the stores© PARIS MIKI HOLDINGS Inc.

23

Key Measures (7): Measures to Expand Hearing Aids
The number of people with hearing loss in Japan is approximately 14.3 million, but the number of people who wear hearing aids is less than 2 million
Aim to increase the rate of wearing hearing aids through “hearing experiences” such as listening to live performances and music, to raise awareness of theneed for hearing aids among people with hearing loss

Hearing Loss Population and Hearing Aid Usage Ratio in Japan

Hearing Aid Sales (JPY 100 mil.)

Population of thosewearing hearing aids

13.5%

Hearing loss
population(in Japan)

14.3
million people

63
57

58

Potential Market

86.5%

Key Measures

60• Promote hearing aid purchases by approaching repeat customers through theuse of hearing aid records and by approaching eyeglass users from theperspective of health• Improve the hearing aid section at stores to increase the number of hearing
measurement and rentals• Proactive approach untapped segments, such as stores in department stores• Develop stores specializing in hearing aids

2021

2022

2023

*Including hearing aid sales of KIMPO-DO since FY2023

2024
Forecast

2030 (FY)Forecast• Further focus on strong rental service to lower the hurdle for first-time hearing aid
users© PARIS MIKI HOLDINGS Inc.

24

Key Measures (8): Measures to Expand Sunglasses
Expand line-up of sunglasses tailored to customer preferences at entertainment-type stores and tax-free stores

In FY2023, the Company strengthened its top-selling products in anticipation of an increase in inbound sales, resulting in a significant increase from the forecast

Sales of Sunglasses (Domestic retail basis) (JPY 100 mil.)Target55

JPY 4,600
million

COVID-19
Pandemic

50
45

46

40

Key Measures

40
35
30
25

18

20

• Wide range of NB and PB products to meet diverse needs

26

25• Aim to capture potential demand for sunglasses by offering popular brands
tailored to customer preferences, especially in entertainment-type stores20• Tax-free stores offer a wide selection of sunglasses
that are popular with foreign tourists

15
10• Active opening of special time-limited sunglasses stores aimed at the peak5

midsummer season

0

2019

2020

2021

2022

2023

2024 (FY)Forecast

Opened at 57 locations in FY2023 andscheduled to be more than 60 locations in FY2024© PARIS MIKI HOLDINGS Inc.

25

Key Measures (9): Inbound Measures
Tax-free sales reached a record high in FY2023; further growth targeted for FY2024
Expand the number of duty-free stores, open stores at airports and terminal stations, and improve infrastructuresuch as foreign-language staff and instruction manuals

Number of Visitors to Japan and the Company’s
Tax-Free Sales
PARIS MIKI tax free sales* (FY2019 = 100)

Number of visitors to Japan (10,000 people)

3,800

250

Key Inbound Measures• Plan to increase the number of tax-free stores from 98 (at the end of FY2023) to 156 at the end of
this fiscal year
• Aggressive opening of new stores in commercial facilities where inbound demand can be expected• Enhancement of foreign language point of purchase (POP) advertising and instruction manuals,
and placement of foreign language speaking staff

240

230

220

210

200

190

2,777

COVID-19
Pandemic• In-house language training to enhance the number of staff who can speak foreign languages• Development of products tailored to the different preferences of visitors to Japan depending on theircountry or region

2,883

180

• Rapid supply of high-quality Japan-made eyeglasses by utilizing “Eyewear of Sabae” and Shamirlenses

170

160

189

150

140

• Delivery to hotels and other places of stay to improve convenience for foreign visitors to Japan

130

120

110

100

90

80

70

100

• Rapid delivery service formultifocal lenses combining bothspeed (of delivery) and quality

852

60

50

• Short-stay visitors to Japan canalso take home multifocal
eyeglasses

40

30

20

24

28

39

2020

2021

2022

10

0

2019

2023

2024 (FY)• Shortest delivery of following
day for multifocal, which
generally takes one week to 10
days to arrive*Including tax-free sales of KIMPO-DO since FY2023
Source: Japan National Tourism Organization for data on foreign visitors to Japan, FY2024 forecast converted from JTB forecast growth rate for calendar year 2024

• Comfortable options for the eyes
such as UV protection andcoloring are available© PARIS MIKI HOLDINGS Inc.

26

03
Overseas Business© PARIS MIKI HOLDINGS Inc.

27

Southeast Asia Market Analysis

Growing ASEAN Market

Growth Potential• Medical and eyeglass markets are expanding due to economic development
associated with population growth• Increasing health consciousness, including in the eyes

Population growth of middle age classGrowing eye care and eyeglasses market(age 45 and over)2020:

189 million people

2045:

309

100+
2020

2030

million people

Unit: 10,000 people

95-99

2045

90-94
85-89

Increased health consciousness• Increased consciousness of eye diseases
and health due to economic development,
longevity, and aging population• Growing demand for advanced medical
services

80-84

Middle senior(age 45 and over)• Expansion of market for myopia (shortsightedness) progression control• Expansion of the presbyopic population (aging of
the eye)

75-79
70-74
65-69

• Growing demand for medical tourism

60-64
55-59
50-54
45-49

collaboration of ophthalmic care andeyeglasses market

40-44
35-39
30-34
25-29
20-24
15-19

10-14
5-9
0-4

3,000

2,000

1,000

Male

FemaleSource: World Population Prospects 2019
URL : https://population.un.org/wpp/Download/Probabilistic/Population/

1,000

2,000

3,000

• Need for a complementary system tosupport pre-symptomatic diseases andoverall eye health

By 2050, the myopic population is projected to increasesignificantly worldwide, reaching approximately 5 billion people

Copyright ©2023 by PARIS MIKI HOLDINGS
Inc.HOLDINGSAll rights reserved.
© PARIS MIKI
Inc .
28

28

Overseas Measures (1): Strengthening Efforts for Affluent Customers
Strengthen high-end products in Asia, where the number of affluent people is increasing along with economic growth

Income

Japan

High

Overseas*

Average unit
price
Enhanced area

Enhanced
area

JPY

33,846 JPY 107,253
Key Measures

Medium• Integrate operation of ophthalmic hospitals and eyeglass stores (combining eyehealth and eyeglass stores) targeting affluent customers in Southeast Asia
• Open stores in local department stores and high-end shopping centers for
affluent customers• Counseling customers to propose the optimal glasses for their lifestyles• Offer mainly high-quality eyeglasses, including ”Eyewear of Sabae" produced atCreate Three, the Company's own factory in Japan, and a wide range of wellknown brand products, with high-quality lenses

Low• Respond to new demand including myopia control eyeglasses, etc.
Stand-alone store

Collaboration with
ophthalmologists

Stores with medical
institutions*Average overseas unit prices are converted at the exchange rate at the end of the fiscal year ended March 31, 2024, in each country© PARIS MIKI HOLDINGS Inc.

29

Overseas Measures (2): Medical Hospitality Business Model
Develop medical hospitality business model in Southeast Asia and strengthen it over the medium to long term
Established a hospital specializing in ophthalmology in Vietnam in 2014 and opened an eyeglass store annex to a clinic in 2022

Management of a hospital specializing in
ophthalmology

Management of eyeglass store within
hospitals

Bring Japan’s highest standard of medical care to the region

Bring Japan’s highest standards of hospitality and high-quality
products to the regionSendcustomers

Provide Japan’s highest standard of
medical care at local prices
To date, 103,500 patients have been
admitted and 34,400 surgeries have been
performed(*As of March 2024)

Send
patients

Offer high level of Japanese-stylehospitality and a large selection ofreasonably priced but high-quality frames,
including original products made in Japan
at our own factory, to propose the optimal
eyeglasses to our customers

Collaboration with ophthalmic care tailored to each region

World’s leading medical hospitality business model

Expansion
Despite a temporary decline due to the spread of COVID-19, steady growth has
been seen since opening, establishing a solid business model
Advancing into Southeast Asian countries

into Southeast
Asian countries

Promoting collaboration of ophthalmic care and eyeglass stores in Southeast Asian
countries such as Cambodia, China, Thailand, the Philippines, and Malaysia byadapting the business model in Vietnam to each region© PARIS MIKI HOLDINGS Inc.

30

04
Growth Investment© PARIS MIKI HOLDINGS Inc.

31

Cash Allocation in Phase 1
Phase 1： Investments focused on strengthening the profit structure, including new store openings and strategic renovations, as well as closing unprofitable stores
In Phase 2 and beyond： Investments in growth, including new shop openings, strategic renovation investment and strengthening of Group synergies,
as well as a focus on shareholder returns

Three-Year Cash Allocation (FY2022–FY2024)•

Growth Investment
Operating Cash Flow
JPY

JPY

7,000 million

8,000 million
Major capital investments•

FY2022-2023
Actual JPY

3,800 million

Budget JPY

3,200 million

Investment in new store openings and strategic renovation
FY2022/2023

Actual:JPY 3,500 million

FY2024

Budget:JPY 2,800 million

DX and system investment
FY2022/2023

Actual:JPY 300 million

FY2024

Budget:JPY 200 million

FY2024FY2022-2023
Actual JPY

5,300 million

Budget JPY

2,700 million•

Machinery and other capital investment
FY2024

Budget:JPY 200 million

FY2022/2023

Actual:JPY 600 million

FY2024

Budget:JPY 400 million

FY2024

Shareholder ReturnJPY

1,000 million© PARIS MIKI HOLDINGS Inc.

32

“Action to Implement Management That is Conscious of Cost of Capital and Stock Price”
Aim to achieve profitability in Phase 1, and profit growth and profit margin improvement in Phase 2 and beyond through growth strategies such as expansionof store openings▍ Aim for 7% net profit margin in FY2030

ROE(Return on Equity)

Profit margin improvement
and profit growth••

Improvement

Increase net profit margin•

Increase customer service hours through DX and proper allocation of store staff
Increase the number of customers visiting stores by promoting new store openings
and store renovating
Reinforce high-quality frames by utilizing Create Three, the company's own frame
manufacturing plant▍ Increase in asset turnover through higher sales per store
Improvement in asset
efficiency•

Increase in total asset
turnoverMaximize
Corporate
Value

Optimize shareholders’equity••Increase revenue and optimize product inventory through consolidation and upsizing ofstoresIncrease product turnover through collaboration with Create three
Increase sales per capita due to improved efficiency of back-office operations▍ Maintain appropriate financial leverage by reinforcing shareholder
returns•

Achieve stable profit generation and a dividend policy in line with business performance

Optimize financial leverage▍ Present growth strategies through the new medium-term
management plan and steady implementation of the strategies

PER(Price Earnings Ratio)

Increase

Increase in expected growth
rate
Control cost of capital

•
•
•
•
•

Improve ROE through realization of medium-term management plan
Penetration of growth strategy among investors by proactive investor relations activities
Improve disclosure of information for investors through renewal of the IR website (June 2023)
Improve investor briefing materials
Reinforce investor briefings(Conducted financial results briefings twice a year since FY2021, and produced IR videos using
YouTube, etc.)© PARIS MIKI HOLDINGS Inc.

33

05
Appendix© PARIS MIKI HOLDINGS Inc.

34

Our Purpose: Enrich Each and Every One of Our Customers with “Tokimeki*” and “Anshin**”
Provide hospitality tailored to local
communities and customers

Reflect customer requests directly inthe products

Retail of eyewear in Japan

Production of eyewear frames

PARIS MIKI Inc.

Create three Co., Ltd.

Offer luxury and high added value

Respond to our customers’ desire to “use quality
products with care over a long period of time”
Repair of eyewear

Retail of eyewear in Japan

O.P.T make FUKUI Co.,Ltd.

PARIS MIKIHOLDINGSKIMPO-DO Co., Ltd.

Collaboration between medical
institutions and eyeglass stores

Create stores for the enjoyment of customers

Overseas retail and wholesale ofeyewear, medical care

General construction and interior finishing

12 countries and regions

GREAT Inc.

Tokimeki*Anshin**Medical-related support business

Medishared Co., Ltd.

Alliance
Technical school for optometry andmedical technology

Investment trust management
and sales

PARIS MIKI AssetManagement Inc.

World Optical College

Provide affluence through secure
asset formation

Support healthy eyes with
community health care

Nurture specialists in optometric
medicine and technology* excitement in Japanese** peace of mind in Japanese© PARIS MIKI HOLDINGS Inc.

35

Future Business Direction
In the future, the Company will focus on products related to eyeglasses and hearing aids and expand into new areas,such as frame manufacturing and repair, and the development of medical malls

Further strengthen synergies within
the group• Consulting about and sales of eyeglasses andhearing aids
• Manufacturing and repair of eyewear frames• Design and construction management of retailstoresIntegrated operations from the design and construction of
stores to the manufacturing, sale, and repair of eyewear
frames within the group

Glasses andHearing Aid Related

MedicalTokimeki*Anshin**New
Domain• Investment trust management and sales• Other• Development of medical malls• Collaboration with neighboring ophthalmologists• Hospital management support and consulting

Switzerland
Ophthalmologists

Informationacquisition andanalysis

The
CompanyJapan
Management and direct sales of
two mutual funds structured as afund of funds to customers

Customers[Kodomo Fund][Naniwa Ofukuro Fund]* excitement in Japanese** peace of mind in Japanese© PARIS MIKI HOLDINGS Inc.

36

Collaboration with Medical Institutions
Philosophy of “tailoring to each and every
person”

May 2022
Openeda medical mall

The mall houses eyeglasses store PARIS MIKI,
an ophthalmology department, and dispensing
pharmacies, providing a one-stop service
for eye examinations, prescriptions, and thepurchase and adjustment of eyeglasses⚫

Largest number of certified optical technicians in theindustry⚫ Multiple-store development with close ties to local⚫

communities
High skills as a professional in eyeglasses

Incorporate medical elements

Educational training program
Education and training programs incorporating
medical elements by Medishared will strengthen
PARIS MIKI’s skills to provide optimum
eyeglasses as

medical equipment

PARIS MIKIKIMPO-DO

Realization ofOphthalmic
clinicvisual care for preventing andhandling pre-symptomatic diseases
through collaboration with local ophthalmologists
and certified optical technicians
The number of prescriptions
FY
for eyeglasses increased year2027
by year by building trusting
FY2026
relationships with neighboring
FY2025ophthalmologists
FY2024

Added Value for
Customers andPatients
Medishared Co., Ltd.
Management support and consulting

Community-based
medical care

• Wholesale of pharmaceuticals, etc.
• Hospital design and construction• Temporary staffing and educational support© PARIS MIKI HOLDINGS Inc.

37

Training and Career Paths to Maximize Potential of Personnel
Mutual dispatch of employees across the Group for long- and short-term training

Domestic stores

Domestic
indirectOverseas stores

Tokimeki*Anshin*** excitement in Japanese** peace of mind in JapaneseCreate three
O.P.T make FUKUIMedicalCareer path training
Domestic stores
Domestic indirect
Overseas stores

Short-term: Six months temporary assignment, Longterm: One year or more
Short-term: One to six months, Long-term: One year or
more

MedicalShort-term: One month, Long-term: One year or more

Create three
O.P.T make FUKUIShort-term: One month, Long-term: One year or more

Short-term: 45 to 90 days, Long-term: One year or more
© PARIS MIKI HOLDINGS Inc.

38

Regional Development of Eyeglasses Retail BusinessJapan

630 stores

Sales (JPY mil.)

612• PARIS MIKI Inc.
stores⎿ 526 directly managed stores,
86 franchise stores• KIMPO-DO Co., Ltd.

Overseas

6,293
KIMPO-DO

18 stores

3,720

Overseas91

FY2023stores(58 directly-managed stores and 33 franchise stores)

America

JPY

49,912

million4 stores
Europe1 store

PARIS MIKI

Asia

83

40,776

Oceaniastores3 stores

Before intragroup elimination transactions© PARIS MIKI HOLDINGS Inc.

39

Notes

Forecasts, earnings forecasts, business plans, and other forward-looking statements containedin this document are future projections at the time of preparation and are subject to potential
risks and uncertainties, and do not constitute assurances as to their accuracy or completeness.
Please be aware that actual results may differ materially from these projections due to a variety
of factors.

© PARIS MIKI HOLDINGS Inc.

40