Premier Anti-Aging Co., Ltd. · TSE:4934
Premier Anti-Aging — FY2021 Earnings Presentation
51 slides from Premier Anti-Aging's earnings presentation, Sep 14, 2021
Slide 1: FY2021 4Q Results Briefing Material
FY2021 4Q TSE Mothers 4934 Premier Anti-Aging Co., Ltd. ２０２１・９・１４ FY2021 4Q Results Briefing Material
Slide 2: Index
01 EXECUTIVE SUMMARY 02 BUSINESS HIGHLIGHTS 03 STATUS BY BRAND INDEX 04 STATUS BY SALES CHANNEL 05 PLANS FOR FY2022 06 APPENDIX
Slide 3: 01 Executive Summary
01 EXECUTIVE SUMMARY *Premier Wellness Science Co., Ltd. Established in FY2021 2Q and Beianmei (Shanghai) Cosmetics Company established in FY2021 3Q have been included in the scope of consolidation. FY2020 results referenced in this document refer to that of only Premier Anti-Aging Co., Ltd. whilst
Slide 4: Executive Summary
Executive Summary ✓ We finished FY2021 with 32.8 billion yen (160% YOY) in net sales and 4.6 billion yen (283% YOY) in operating profit. Both overachieved the business forecast we revised earlier in the year. ✓ We acquired new members, especially for Black Balm, thus, the number of subscribers that
Slide 5: 02 Business Highlights
02 BUSINESS HIGHLIGHTS
Slide 6: Business Highlights: Business Forecast Achievement
Business Highlights：Business Forecast Achievement Net sales achieved 129% against the original forecast and 104% against the revised forecast. Likewise, the operating profit achieved 179% against the original forecast and 106% against the revised forecast. So both net sales and operating profit over
Slide 7: Business Highlights: Profit and Loss Statement (YOY)
Business Highlights : Profit and Loss Statement (YOY) In addition to the steady increase of Mail-Order/EC service subscribers, the wholesale business, which delivers high profits, drove growth. Therefore, both net sales and profitability increased significantly. Unit: Millions of Yen Increase/ FY202
Slide 8: Business Highlights: Net Sales by Channel (YOY)
Business Highlights : Net Sales by Channel (YOY) All channels grew. In particular, the wholesale channel grew by 217％ YOY and has been key in significantly propelling growth. Unit: Millions of Yen Increase/ FY2020 FY2021 YOY Decrease Net Sales 20,508 32,815 ＋12,306 160.0％ Ｌ Mail-Order/EC 15,751 22,2
Slide 9: Business Highlights: SG&A Breakdown (YOY)
Business Highlights : SG&A Breakdown (YOY) While net sales grew (160% YOY), SG&A only increased by 146%, thereby improving our profitability. Better efficiencies in business consignment and advertising and promotions especially contributed to these results. Unit: Millions of Yen Increase/ FY2020 FY2
Slide 10: Business Highlights: Advertising and Promotional Expenses (YOY)
Business Highlights : Advertising and Promotional Expenses (YOY) Better efficiencies acquiring new Mail-Order/EC service subscribers helped reduce the percentage of ad spend against net sales. YOY (Millions of Yen) 160.0% 35,000 32,815 Net Sales vs Ad Spend 32,500 30,000 43.0％ ⇒ 39.0％ 27,500 （-4.0pt
Slide 11: Business Highlights: Profit and Loss Statement (QonQ)
Business Highlights：Profit and Loss Statement (QonQ) Net sales grew strongly in the fourth quarter. Furthermore, in addition to investments in Canadel and the expansion of overseas business, we were able to make a recovery in terms of new subscribers acquisition, which we had slight difficulties wit
Slide 12: Business Highlights: Balance Sheet
Business Highlights : Balance Sheet (Comparison Against the End of FY2020) Our current assets and net assets have significantly increased mainly as a result of the initial public offering on TSE Mothers. We are continuing to practice asset-light management. Unit: Millions of Yen Increase/ Percentage
Slide 13: 03 Status by Brand
03 STATUS BY BRAND
Slide 14: Status by Brand: Brand Introduction
Status by Brand : Brand Introduction We currently offer 4 cosmetics brands. ✓ Our key and inaugural brand. ✓ Nurturing as the second brand after Pioneer in the cleansing balm Duo. Focuses on shortening time market and continues to drive required for skin care to address Sales Distribution Ratio*2 Sa
Slide 15: Status by Brand: Duo
Status by Brand : Duo Although net sales decreased in May due to temporary factors, after June, the growth of Black Balm led the performance, and Duo replaced the past highest sales in July. (Millions of Yen) 3,000 Duo Monthly Net Sales Strong growth attributed to the continuous Mail Order/EC Wholes
Slide 16: Status by Brand: Duo
Status by Brand : Duo The launch of Black Balm attracted new younger customers and contributed to record number of shipments of cleansing balm products in June. (10,000 units) 160 Duo Cleansing Balm Shipments Per Item 140 Balm Clear White Barrier Black Others New from the best-selling cleansing bran
Slide 17: Status by Brand: Canadel
Status by Brand : Canadel We heightened the brand-awareness with advertising initiatives that utilized a varying mix of media including TVCMs. As a result, net sales for Mail-Order/EC grew strongly. (Millions of Yen) 600 TVCM Canadel Monthly Net Sales TVCM Impacted by decrease in shipments due to Ma
Slide 18: Status by Brand: sitrana
Status by Brand : sitrana From the end of May, we appointed brand ambassadors and conducted promotional activities leading up to the June 18 shopping festival in China. As a result, we achieved monthly net sales of over 100 million yen in June. Growth attributed to the promotional activities we (Mil
Slide 19: Status by Brand: Immuno
Status by Brand : Immuno Many stores that carry Immuno are located in city centers, so the brand has faced difficulties with the regional expansion of the state of emergency. We hope to expand sales by introducing a quasi pharmaceutical product that contains active ingredients for treating wrinkles
Slide 20: 04 Status by Sales Channel
04 STATUS BY SALES CHANNEL
Slide 21: Status by Sales Channel: Net Sales by Channel
Status by Sales Channel : Net Sales by Channel In the fourth quarter, wholesale sales decreased temporarily due to warehouse relocation and the long holiday, but Mail-Order/EC marked record high sales due to the acquisition of new subscribers. (Millions of Yen) 10,000 Trends in Net Sales by Channel
Slide 22: Status by Sales Channel: Mail-Order (Number of Members)
Status by Sales Channel : Mail-Order (Number of Members) Our membership continued to grow steadily in 4Q, so the outlook for the next fiscal year looks bright. Introduction of sensitive skin and pore care products for the younger audience and promotional activities contributed significantly to growt
Slide 23: Mail Order (Cross Selling Initiatives)
Status by Sales Channel : Mail Order (Cross Selling Initiatives) With the introduction of Black Balm, the number of subscribers increased rapidly. As a result, the ratio of members who subscribe to more than 2 products decreased, however, we are implementing cross selling initiatives to improve this
Slide 24: Net Sales of Non-Balm Products
Status by Sales Channel : Net Sales of Non-Balm Products Sales of balm products continued to grow, therefore the contribution of non-balm products decreased slightly, however it still continued to grow strongly. Other brands marked record high sales in the fourth quarter due to the growth of sitrana
Slide 25: Status by Sales Channel: Wholesale
Status by Sales Channel : Wholesale Duo and Canadel both achieved target number of distribution stores. We will shift strategies for Duo to focus on increasing store space to also encourage sales of face wash, rather than the number of distribution stores. Trends in Number of Stores that Carry DUO a
Slide 26: Environmental initiatives
Environmental initiatives We are actively promoting eco-conscious initiatives. Duo Canadel sitrana Immuno Canadel We are using FSC® certified packaging We won the GP Eco Award again, but this year materials for all of our brands. we won the Grand Prix! FSC® certification is a system through The GP m
Slide 27: 05 Plans for FY2022
05 PLANS FOR FY2022
Slide 28: Business Forecast: Consolidated Profit and Loss Statement
Business Forecast: Consolidated Profit and Loss Statement In FY2022, we will focus on expanding sales and further improving profitability. Net Sales (Millions of Yen) 6,000 40,000 Millions of Yen（121.9％ YoY） 4,680 40,000 Operating Profit 32,815 6,000 Millions of Yen（128.2％ YoY） 138 242 1,653 20,508
Slide 29: Business Forecast: FY2022 Growth Drivers
Business Forecast: FY2022 Growth Drivers Focus on the following three growth drivers to achieve net sales of 40 billion yen in FY2022 Growth of Duo’s non-balm products Canadel brand’s growth Growth Drivers Overseas growth © Premier Anti-Aging Co., Ltd. 29
Slide 30: Growth Driver 1: Growth of Duo's Non-balm Products
Growth Driver 1: Growth of Duo’s Non-balm Products We will transform the brand from Duo-the cleansing brand to Duo-the skin care brand. Current challenge 1: Increase sales of non-balm products Skin Care (1.2651 trillion yen) Initiative 1: Focus our promotions on face wash, which is highly compatible
Slide 31: Growth Driver 1: Growth of Duo's Non-balm Products
Growth Driver 1: Growth of Duo’s Non-balm Products We will take advantage of the growth in the number of balm shipments and focus our in-store promotion on face wash, a product in the same category as cleansing. We will aim to expand the This fall, we will also begin Strengthen promotions number of
Slide 32: Growth Driver 1: Recommend products for each customer
Growth Driver 1: Growth of Duo’s Non-balm Products Drawing on our expertise in digital marketing and using the data gathered from approximately 3 million members, we will establish a mechanism that enables us to take into consideration each customer’s situation and recommend appropriate products. Pa
Slide 33: Growth Driver 2: Canadel Brand's Growth
Growth Driver 2: Canadel Brand’s Growth For the Canadel brand, we will implement a wide range of initiatives to improve awareness. Air TVCMs in more regions and use other types of media. Improve awareness in weaker We will air new TVCMs with a double cast areas and actively utilize digital starting
Slide 34: Growth Driver 2: Key initiatives
Growth Driver 2: Canadel Brand’s Growth We will implement various other initiatives in addition to those that enhance awareness. We currently have 3 all-in- One of the advantages of the DtoC one products that address model is direct access to customer firmness, whitening, and Increase the highly fun
Slide 35: Growth Driver 3: Overseas Growth
Growth Driver 3: Overseas Growth We will improve our brand awareness in preparation for China’s large-scale sales event in November. We will also establish a highly profitable, cross-border D2C sales platform. Implement a brand strategy which reflects the unique needs of the region Establish a highl
Slide 36: Other Initiatives: Premier Wellness Science
Other Initiatives: Initiatives by the Premier Wellness Science* Develop products backed by scientific evidence. Providing wellness and R&I R&D anti-aging products Discovering - Clarifying safety, a new series utility - Discovering new - Clinical tests, Co-develop with materials and prototype technol
Slide 37: 06 Appendix
06 APPENDIX
Slide 38: Appendix: Company Profile
APPENDIX：Company Profile Company Profile Name Premier Anti-Aging Co., Ltd. Established December 2009 HQ Toranomon Hills Mori Tower, Toranomon 1-23-1, Minato-ku, Tokyo President & CEO Kiyoshi Matsuura Director & COO Koji Kawabata Director & CFO Takahiro Toya Board Independent Outside Director Takuyuk
Slide 39: Appendix: Business Philosophy
APPENDIX：Business Philosophy Business Philosophy Time is fleeting, and it passes equally, whether you are young or old. Hours become days, days become the future. Unleashing Time We want to be an integral part of people’s time. By offering an exceptionally “unique value”, we want to enrich people’s
Slide 40: Appendix: Situation by Brand (DUO)
APPENDIX：Situation by Brand (DUO) Key brand since our foundation. Continues to drive sales as a pioneer in the cleansing balm market. We have combined natural ingredients that are kind to the skin, body, and nature and advanced science based on dermatology to develop highly effective products. Duo i
Slide 41: Appendix: Situation by Brand (Canadel)
APPENDIX：Situation by Brand (Canadel) Nurturing as a second key brand. Canadel focuses on modern women’s needs to save time spent on skin care. Based on the concept to “continuously pursue beauty, to be true to oneself, and enjoy life”, we launched this highly advanced aging care brand in April 2019
Slide 42: Appendix: Situation by Brand (sitrana)
APPENDIX：Situation by Brand (sitrana) Cosmetics brand for sensitive skin with cica substance*1 in every product. 【Brand launched September 2020】 With a unique anti-pollution capability, these products protect the skin from external stimuli that cause skin irritation such as dryness, skin pollution,
Slide 43: Appendix: Situation by Brand (Immuno)
APPENDIX：Situation by Brand (Immuno) Organic cosmetics brand that takes SDGs into consideration and promotes sustainable development. 【 Brand launched October 2020 】 These products reflect the comfort, aroma, and eco- conscious of organic products. They not only “seem great”, they are backed by scie
Slide 44: Appendix: Market Trends (Cosmetics Overall)
APPENDIX：Market Trends (Cosmetics Overall) The domestic cleansing market including balms in 2020 is 128.2 billion yen. Supplements Cosmetics Cosmetics Market Make Up Skin Care ¥2.5948 tril (Expected)*1 Face Wash Cleansing Powder Foam Balm Skin Care Market Make up Solid Soap ¥1.2651 tril*2 Cosmetics
Slide 45: Appendix: Domestic Cleansing Market Size
APPENDIX： Domestic Cleansing Market Size The domestic cleansing market expanded in 2014 as a result of inbound demand, however, due to the COVID-19 pandemic, the market has contracted. COVID-19 (Millions of Yen) Outbreak 1,500 ¥120.7➔¥147.5 bil ¥128.2 bil 22%UP 13%DOWN (2014-2019) (2019-2020) 1,400
Slide 46: Appendix: Cosmetics and Skin Care Domestic Market Size
APPENDIX：Cosmetics and Skin Care Domestic Market Size Until 2019 the domestic cosmetics market had continued to grow gradually, but post pandemic, it has significantly contracted. Cosmetics and Skin Care (Millions of Yen) COVID-19 Domestic Market Size Outbreak 30,000 Skin care Non skin care cosmetic
Slide 47: Appendix: Increase in Propensity to Shop Online
APPENDIX：Increase in Propensity to Shop Online EC in the skin care market has experienced a tailwind since people have been spending more time at home during the COVID-19 pandemic. Increase in Propensity to Shop Online Cosmetic Sales in Japan by Channel Total 合計 Where did you buy cosmetics Will you
Slide 48: Appendix: Organizational Characteristics
APPENDIX：Organizational Characteristics We have created an organization that specializes in the core operations. This has realized excellent productivity and mobility. １. Fabless Management We select the optimal OEM for each product from among the nationwide network of OEM manufacturers we have buil
Slide 49: Appendix: History
APPENDIX：History History 2009・ － Dec：The company was Company established (Toranomon , Minato-ku) 2010・ － Feb：Began sales of cosmetic products. Launch of DUO: Began selling The Cleansing Balm through mail order service － Nov：The Cleansing Balm won the first prize for the first time in Other Cleansers
Slide 50: Disclaimer Regarding Forecasts and Projections
Disclaimer Regarding Forecasts and Projections ✓ The document and information provided as part of our results announcement include forward-looking statements, which reflect our current expectations and assumptions about forecasts and risks. Our actual results may materially differ from those describ
Slide 51: Premier Anti-Aging
PREMIER ANTI-AGING