Premier Anti-Aging Co., Ltd. · TSE:4934
Premier Anti-Aging — FY2022 2Q Earnings Presentation
52 slides from Premier Anti-Aging's earnings presentation, Mar 14, 2022
Slide 1: FY2022 2Q Results
FY2022 ２０２２・３・１４ 2Q Premier Anti-Aging Co., Ltd. FY2022 2Q Results
Slide 2: Index
01 EXECUTIVE SUMMARY 02 BUSINESS HIGHLIGHTS 03 STATUS BY BRAND INDEX 04 STATUS BY SALES CHANNEL 05 INITIATIVES FOR 3Q AND BEYOND 06 APPENDIX Copyright©2022 PREMIER ANTI-AGING Co., Ltd. All Rights Reserved. 2
Slide 3: Executive Summary (consolidation note)
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. Results before FY2021 1Q referenced in this document refer to those of only Premier Anti-Aging Co., L
Slide 4: Executive Summary
Executive Factors that led to curtailed ad placement in 1Q were gradually resolved Summary in 2Q, thus we saw strong mail Order/EC sales. DUO’s Wholesale was higher than the same quarter previous year, although it decreased from the previous quarter due to the reaction to the increase in shipmen
Slide 5: Business Highlights
０２ BUSINESS HIGHLIGHTS
Slide 6: Business Highlights: P&L Statement (YOY)
Business Highlights Unit: Millions of Yen P&L Statement (YOY) FY2021 FY2022 Increase/ YOY 1Q-2Q 1Q-2Q Decrease Net Sales 15,310 17,970 ＋2,659 117.4％ Net Sales grew YOY in all channels. ＬMail Order/EC 10,537 12,397 ＋1,860 117.7％ SG&A increased temporarily, thus the operating profit was lower than
Slide 7: Business Highlights: SG&A (YOY)
Business Highlights Unit: Millions of Yen SG&A (YOY) Increase/ FY2021 FY2022 Decrease YOY Factors that temporarily curtailed ad 1Q-2Q 1Q-2Q placement in 1Q were gradually resolved, thus 2Q investments were SG&A 9,888 12,251 ＋2,362 123.9％ strong. ＬAdvertising & 5,913 6,523 ＋610 110.3％ Promotion W
Slide 8: Business Highlights: Advertising and Promotional Expenses
Business Highlights (Millions of Yen) YOY 20,000 Advertising and Promotional 117.4% Expenses (YOY) 17,970 17,500 Net Sales vs Ad Spend 38.6％ ⇒ 36.3％ 15,310 (-2.3pts) Factors that temporarily curtailed ad 15,000 placement in 1Q were gradually Net Sales vs Customer Acquisition Costs 26.0％ ⇒ 20.8％ re
Slide 9: Business Highlights: P&L Statement (QonQ)
Business Highlights P&L Statement (QonQ) Unit: Millions of Yen FY2021 FY2021 FY2021 FY2022 FY2022 2Q 3Q 4Q 1Q 2Q Mail Order/EC performed well, but QonQ net sales of Wholesale Net Sales 8,099 8,455 9,049 9,865 8,104 82.2％ decreased due to sluggish sell- Gross Profit* 6,668 6,887 7,192 7,924 6,575 8
Slide 10: 2Q Results vs. Business Forecast Achievement Rate
2Q Results vs. Business Forecast Achievement Rate Business Highlights First half forecast Full year forecast P&L Statement (vs. Business 19.0 bil 40.0 bil Forecast) 17.9 bil Net Sales New customer acquisition for Mail 44.9% Order/EC is recovering and the (94.6%) increase in SG&A mainly due to 2.6
Slide 11: Business Highlights: Balance Sheet
Business Highlights Unit: Millions of Yen Balance Sheet (Comparison Against End of FY2021) FY2022 Increase/ Percentage FY2021 2Q Decrease Increase Once again, our fixed assets only Total Assets 13,071 13,689 ＋618 104.7％ amounted to approximately 4% of our total assets, thus we are continuing ＬCurr
Slide 12: Status by Brand
０３ STATUS BY BRAND
Slide 13: Brand Introduction
Our key and inaugural Nurturing as the second brand. brand after DUO. Brand Introduction Pioneer in the cleansing balm Focuses on shortening time required for skin market and continues Sales Composition care to address needs Sales Composition of busy modern women. We currently offer 4 to drive
Slide 14: DUO Brand Monthly Net Sales
DUO Brand Monthly (Millions of Yen) 3,500 Net Sales DUO Monthly Net Sales Mail Order/EC Wholesale Others 3,000 Mail Order/EC continues to grow strongly, mainly around Black Balm. 2,500 Sell-through was sluggish for Wholesale due to the reaction to the increase in shipments in 1Q as a 2,000 resul
Slide 15: DUO Cleansing Balm Monthly Shipments
Closer look at Mail Order/EC DUO Cleansing Balm (10,000 units) 70 Monthly Shipments 60 160 DUO Cleansing Balm 50 Shipments Per Item 40 140 30 Original 20 Clear 10 Wholesale shipments this quarter 120 White 0 Barrier decreased due to the reaction to the 2 3 4 5 6 7 8 9 10 11 12 1 Black increase in
Slide 16: Canadel Monthly Net Sales
Canadel Monthly (Millions of Yen) 600 Net Sales CANADEL Monthly Net Sales Mail Order/EC Wholesale Others Canadel performed well due to new 500 TVCMs that aired from October and coordinated web marketing initiatives. 400 We saw record high Mail Order/EC net sales and monthly sales nearly reached 40
Slide 17: Status by Sales Channel
０４ STATUS BY SALES CHANNEL
Slide 18: Net Sales by Channel
Net Sales by Channel (Millions of Yen) 12,000 Trends in Net Sales by Channel Mail Order/EC Wholesale Others (including sales by overseas subsidiary) 10,000 Factors that curtailed new customer acquisition efforts in 1Q were gradually resolved in 2Q, thus Mail 8,000 Order/EC performed well. 35% Whol
Slide 19: Status by Sales Channel: Cross Selling Initiatives
Trends in Customers Who Subscribe to More Status by Sales Than 2 Products and the Relevant Ratio Channel (People) (Left axis) 100,000 Customers who subscribe to more Ratio of customers who subscribe to more 14.0% than 2 products than 2 products (Right axis) Mail Order/EC (Promoting Cross 90,000 Sell
Slide 20: Status by Sales Channel: Total Number of Members
Status by Sales (People) 3,500,000 1 Channel Total Number of Members Mail Order/EC (Total Number of 3,000,000 1 Members) The impact from the change in 2,500,000 advertising laws that led us to curtail 1 new customer acquisition in 1Q 2,000,000 gradually dissipated in 2Q, thus total 1 number of mem
Slide 21: Status by Sales Channel: Wholesale
Status by Sales Stores that Carry Our Products* & Number of Items Shipped per Store Channel Wholesale (Shipments) (Stores) 1～3SKUs 4～6SKUs 7SKUs or more (Stores) 18,000 1SKUs 2SKUs 3SKUs 4SKUs or more 18,000 Shipments of DUO’s face wash series increased in 1Q, and the DUO 16,000 16,000 line-up gre
Slide 22: ESG Initiatives
ESG Initiatives Sustainalytics’ ESG Risk Ratings for Japanese Cosmetics Companies We were ranked 2nd, with a high score of 20.0 A社 Company A 17.0 among all Japanese プレミアアンチエイジング Premier Anti-Aging 20.0 companies in the cosmetics industry by B社 Company B 26.8 Sustainalytics’ ESG Risk C社 Company C 2
Slide 23: Initiatives for 3Q and Beyond
０５ INITIATIVES FOR 3Q AND BEYOND
Slide 24: Initiatives for 3Q and Beyond
Initiatives for 3Q and Beyond 03 02 01 ESG Initiatives Strategies for 3 New Key Categories Canadel’s Promotional Initiatives Copyright©2022 PREMIER ANTI-AGING Co., Ltd. All Rights Reserved. 24
Slide 25: Canadel Promotional Initiatives: TVCMs
Initiatives for 3Q and TVCMs Beyond Canadel’s Recognition by Region Canadel Promotional Initiatives 1位 Region 2位 Awareness Canadel is well recognized in the market, but the level or recognition Kinki 43.0% varies depending on the region. Kanto 41.0％ We will continue to expand our presence by foc
Slide 26: Canadel Promotional Initiatives: Premier Barrier Fix
Initiatives for 3Q and Beyond Further strengthen both our product appeal and ability to make proposals Canadel Promotional Initiatives We will launch the Canadel “Premier Appeal how Barrier Fix” as a whitening x wrinkle dipotassium care quasi-drug in April 2022. glycyrrhizinate Appeal how niacinam
Slide 27: Strategies for 3 New Key Categories
Initiatives for 3Q and Brand launch Brand launch Beyond in late April on March 22 Strategies for 3 New Key Categories Drawing on our know- how of nurturing new brands proven with Canadel (Canadel sales grew to 4 billion yen in size in 2 years) we will launch 3 new key categories one after the Comi
Slide 28: DUO MEN
Initiatives for 3Q and Beyond Strategies for 3 New Key Categories While staying true to DUO’s brand concept - ～DUO MEN～ “Beauty is reborn from skin care” - we took a close look at skin problems and damage men are We will launch a new men’s experiencing from an ecological, bioscience point cosmetic
Slide 29: Men's Cosmetics Market Trends
Initiatives for 3Q and Men’s Cosmetics Market Trends Beyond Strategies for 3 New Key (100 Million Yen) Categories 1,650 ～DUO MEN～ 1,608 1,600 1,389➔1,608 16%UP The men‘s cosmetics market is (2017-2022) 1,550 estimated to grow to 160.8 billion yen in 2022, growing 16% in 1,506 1,500 comparison to 2
Slide 30: Why Men Hesitate to Use Cosmetics
Initiatives for 3Q and Beyond Key reasons why men hesitate Women’s view of men Strategies for 3 New Key using cosmetics with clogged pores Categories ～DUO MEN～ Men are hesitant to use cosmetics because they “Don’t know what to do”, “Skin care is tedious”, or they Don’t know Clogged pores leave a n
Slide 31: Brand Positioning of the Men's Cosmetics Market
Initiatives for 3Q and Beyond Strategies for 3 New Key Brand positioning of the men’s cosmetics market Cleansing Balm Categories ～DUO MEN～ Multi-function DUO cleansing balm is multi- Cleansing Treatment functional. Drawing on this feature, Massage Exfoliating we will target men who “Don’t know Fac
Slide 32: clayence Hair Care Brand
Initiatives for 3Q and Beyond By combining the power of clay and Strategies for 3 New Key cutting-edge science, we created a Categories clay spa inspired hair care brand that ～clayence～ provides hair and scalp treatment and colors gray hair. In addition to With our unique clay spa method, we caref
Slide 33: Gray Hair Concerns and Household Hair Color Market
Initiatives for 3Q and Future concerns about Want to dye hair during day-to-day Beyond scalp and hair*1 hair care*1 Strategies for 3 New Key Categories #1 #2 2位 #3 3位 ～clayence～ Damaged 20s Hair loss Gray hair hair There are many concerns about scalp Want to dye hair during day-to-day hair care 69
Slide 34: Gray Hair Coloring Behavior
Ratio of people who have gray hair, but Initiatives for 3Q and have not colored their hair *1 Beyond Strategies for 3 New Key (%) Reasons why they don’t want to Categories 30 use off-the-shelf coloring ～clayence～ products *2 Since many believe coloring gray hair is for “older people”, they don’t b
Slide 35: Wellness Market: CBD Product Categories
Possible product Initiatives for 3Q and categories Beyond Strategies for 3 New Key Categories Stress Sleep depression health Cosmetology ～Wellness Market～ Never pain appearance Internal Others health CBD has a broad range of efficacy from Anti- Gum Scalp health beauty to health and may be used to
Slide 36: ESG Initiatives: Donation and Events
Initiatives for 3Q and Donation and Sponsorship Organization of Internal Beyond of HAPPY WOMAN® Events ESG Initiatives As an initiative to realize one of the 17 SDGs, “Achieve gender equality and empower all women and girls”, we showed our support to the International Women’s Day by donating a par
Slide 37: Appendix
０６ ＡＰＰＥＮＤＩＸ
Slide 38: Company Profile
Company Name Premier Anti-Aging Co., Ltd. Profile Established December 2009 HQ Toranomon Hills Mori Tower, Toranomon 1-23-1, Minato-ku, Tokyo President and CEO Kiyoshi Matsuura Managing Executive Officer Koji Kawabata Managing Executive Officer Takahiro Toya Independent Outside Director Takuyuki Fuk
Slide 39: Business Philosophy: Unleashing Time
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 lives and change the future.
Slide 40: Company History
2009・ － 沿革 － 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 category at @cosm
Slide 41: Situation by Brand: DUO
Situation by Brand DUO Key brand since our foundation. Continues to We have combined natural ingredients that are kind to the skin, drive sales as a pioneer in body, and nature and advanced the cleansing balm market. science based on dermatology to develop highly effective products. DUO is an agin
Slide 42: Situation by Brand: CANADEL
Situation by Brand CANADEL Based on the concept to “continuously pursue Nurturing as a second key beauty, to be true to oneself, and enjoy life”, we brand. CANADEL focuses on launched this highly advanced aging care brand in modern women’s needs to April 2019 to address the changing skin care need
Slide 43: Situation by Brand: Sitrana
Situation by Brand Sitrana With a unique anti-pollution capability, these products protect the skin from external stimuli that cause skin Cosmetics brand for irritation such as dryness, skin pollution, and dirt/grime. sensitive skin with cica Our original blend of cica substances*1 will help subst
Slide 44: Situation by Brand: Immuno
Situation by Brand Immuno Organic cosmetics brand that takes SDGs into consideration and promotes sustainable development. These products reflect the Key best cosmetics awards comfort, aroma, and eco- we have received in the first half of 2021 conscious of organic products. They not only “seem gre
Slide 45: Market Trends (Cosmetics Overall)
Supplement Market Trends Cosmetics (Cosmetics Overall) Make Up Skin Care Cosmetics Market Make up ¥2.7502 tril Face Wash Cleansing (of which the men’s Powder market is 150.6 bil yen) Balm Foam The domestic cleansing Skin Care Market Solid Soap market including balms in ¥1.2651 tril 2020 was 128.2
Slide 46: Environmental Initiatives
DUO CANADEL sitrana immuno CANADEL Environmental We are using FSC® certified packaging We won the GP Eco Award again, initiatives materials for all of our brands. but this year we won the Grand Prix! FSC® certification is a system The GP mark certifies that We are actively promoting through which
Slide 47: Domestic Cleansing Market Size
Domestic Cleansing ￥120.7➔￥147.5 bil 22％UP COVID-19 Market Size (Millions of Yen) Outbreak 1,500 (2014-2019) ￥128.2 bil 13％DOWN The domestic cleansing 1,400 Domestic Cleansing Market Size (2019-2020) market expanded in 2014 as a result of inbound demand, 1,300 however, due to the COVID- 19 pandemi
Slide 48: Cosmetics and Skin Care Domestic Market Size
Cosmetics and Skin Care Domestic (Millions of Yen) Cosmetics and Skin Care Domestic Market Size COVID-19 Outbreak Market Size 30,000 Skin care Non skin care cosmetics 28,149 25,948 Until 2019 the domestic 25,000 22,944 cosmetics market had continued to grow gradually, 20,000 Non skin care cosmetic
Slide 49: Increase in Propensity to Shop Online
Increase in Propensity Increase in Propensity to Shop Online Cosmetic Sales in Japan by Channel to Shop Online 2% 2% Total 5% Where did you buy cosmetics Mail Order/EC 6% during the “self-quarantine” EC in the skin care market 30% Increase in period? Cosmetic EC Drug Stores Propensity to has exper
Slide 50: Organizational Characteristics
Organizational １. Fabless Management Characteristics We select the optimal OEM for each product from among the We have created an nationwide network of OEM organization that manufacturers we have built. By outsourcing production, we can specializes in the core maintain a flexible production operat
Slide 51: Disclaimer Regarding Forecasts and Projections
Disclaimer Regarding The document and information provided as part of our results announcement Forecasts and include forward-looking statements, which reflect our current expectations and assumptions about forecasts and risks. Our actual results may materially differ Projections from those describ
Slide 52: Premier Anti-Aging
PREMIER ANTI-AGING