Premier Anti-aging Co., Ltd. · TSE:4934
Premier Anti-aging — Q1 FY2022 Earnings Presentation
53 slides from Premier Anti-aging's earnings presentation, Dec 14, 2021
Slide 1: FY2022 1Q Results Briefing Material
FY2022 1Q TSE Mothers 4934 Premier Anti-Aging Co., Ltd. ２０２１・１２・１４ FY2022 1Q Results Briefing Material
Slide 2: Index
01 EXECUTIVE SUMMARY 02 BUSINESS HIGHLIGHTS 03 STATUS BY BRAND INDEX 04 STATUS BY SALES CHANNEL 05 INITIATIVES FOR 2Q AND BEYOND 06 APPENDIX
Slide 3: Executive Summary
０１ EXECUTIVE SUMMARY *Premier Wellness Science Co., Ltd. established in FY2021 2Q and Premier Anti-Aging (Shanghai) Co.,Ltd. established in FY2021 3Q have been included in the scope of consolidation. Results before FY2021 1Q referenced in this document refer to that of only Premier Anti-Aging Co., L
Slide 4: Executive Summary
Executive Summary ✓ Net sales and profits at each stage marked record high quarterly performance. Sales and profits have continued to increase due to great strides made by Black Balm and DUO Face Wash series and growth of wholesale. ✓ We modified our rules pertaining to ad placement in accordance wi
Slide 5: Business Highlights
０２ BUSINESS HIGHLIGHTS
Slide 6: Business Highlights: Profit and Loss Statement (YonY)
Business Highlights : Profit and Loss Statement (YonY) Both mail order/EC and wholesale grew steadily YonY. The growth of wholesale, which delivers high profitability, and reining in investments in advertising have significantly improved profitability. Unit: Millions of Yen FY2021 FY2022 Increase/ Y
Slide 7: Business Highlights: Profit and Loss Statement (vs. Business Forecast)
Business Highlights : Profit and Loss Statement (vs. Business Forecast) Net sales and profits at each stage have progressed as planned. The profits at each stage are already at 80% of our business forecast for the first half of the year. 1Q Results vs. Full-year Forecasts First half forecast Full-ye
Slide 8: Business Highlights: SG&A Breakdown (YonY)
Business Highlights： SG&A Breakdown (YonY) We modified our rules pertaining to ad placement in accordance with the revisions to the Pharmaceutical and Medical Device Act and the Specified Commerce Transactions Act. We have temporarily reined in ad placement as we are examining the optimal advertisin
Slide 9: Business Highlights: Advertising and Promotional Expenses (YonY)
Business Highlights： Advertising and Promotional Expenses (YonY) Increase in wholesale, which does not require ad spend to acquire new subscribers, and curtailing ad spend in order to reexamine our rules pertaining to ad placement in accordance with the revisions to the Pharmaceutical and Medical De
Slide 10: Business Highlights: Profit and Loss Statement (QonQ)
Business Highlights： Profit and Loss Statement (QonQ) Both net sales and operating profit marked record high quarterly performance, and sales and profits have continued to increase. Unit:Millions of Yen FY2021 FY2021 FY2021 FY2021 FY2022 1Q 2Q 3Q 4Q 1Q Net Sales 7,210 8,099 8,455 9,049 9,865 109.0％
Slide 11: Business Highlights: Balance Sheet
Business Highlights : Balance Sheet (Comparison Against the End of FY2021) Our fixed assets only amount to approximately 4% of our current assets, thus we are continuing to practice asset-light management. Unit: Millions of Yen FY2022 Increase/ Percentage FY2021 1Q Decrease Increase Total Assets 13,
Slide 12: Status by Brand
０３ STATUS BY BRAND
Slide 13: 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 Sales Dist
Slide 14: Status by Brand: DUO
Status by Brand : DUO Black Balm continues to make great strikes, driving sales of the entire brand. Due to TVCMs aired starting September, the face wash series is off to a steady start, continuing to grow significantly mainly through wholesale. (Millions of Yen) 3,500 DUO Monthly Net Sales 【Changes
Slide 15: Status by Brand: DUO shipments
Status by Brand : DUO We have shipped more than 30 million units of the cleansing balm series. Black Balm is growing at an accelerated pace, and the overall number of shipments continues to increase. (10,000 units) 160 DUO Cleansing Balm Shipments Per Item 140 Original Clear White Barrier Black Othe
Slide 16: Status by Brand: DUO TVCM likeability ranking
Status by Brand : DUO Three commercials including the face wash TVCMs we began airing from September have ranked No.1 in the TCVM likeability ranking in cosmetics category. Three TVCMs for DUO have ranked No.1 in the FY2021 October TVCM likeability ranking cosmetics category. * *According to the CM
Slide 17: Status by Brand: CANADEL
Status by Brand : CANADEL In order to approach customers in their 20s to 40s, who were not considered main targets of the traditional all-in-one cosmetics, we have aired new TVCMs feature two actresses starting October. We are steadily implementing new initiatives to redefine all-in-one cosmetics. (
Slide 18: Status by Brand: sitrana
Status by Brand : sitrana Chinese authorities tightened regulations regarding the use of celebrities, thus we temporarily halted the planned marketing initiatives and redeveloped our promotional strategy. (Millions of Yen) 160 sitrana Monthly Net Sales Mail Order/EC Wholesale Others Local Subsidiary
Slide 19: Status by Sales Channel
O04 STATUS BY SALES CHANNEL
Slide 20: Status by Sales Channel: Net Sales by Channel
Status by Sales Channel : Net Sales by Channel Due to advertising regulations, some of our activities were limited, however, with an improvement in channel mix, wholesale drove our overall performance, and we marked record high quarterly net sales. Our business has become more stable. (Millions of Y
Slide 21: Mail Order/EC: Cross Selling Initiatives
Status by Sales Channel : Mail Order/EC (Cross Selling Initiatives) We saw a decrease in the number of customers who subscribe to more than two products since new customer acquisition slowed down. We are undertaking various initiatives to increase new customer acquisition. Trends in Customers Who Su
Slide 22: Mail Order/EC: Number of Members
Status by Sales Channel : Mail Order/EC (Number of Members) The number of total members grew steadily and exceeded three million despite the limitations we experienced with respect to communication activities targeting potential customers as a result of changes in our d placement rules in accordance
Slide 23: Status by Sales Channel: Wholesale
Status by Sales Channel : Wholesale In order to deliver on this fiscal year’s growth strategy - expanding store space - we launched face wash series for DUO and new pore care products for CANADEL. The number of items per store has grown solidly. Trends in Number of Stores* that Carry DUO and CANADEL
Slide 24: Other Initiatives: TVCM Evaluation
Other Initiatives : TVCM Evaluation DUO and CANADEL TVCMs selected as excellent commercials. Won the BRAND OF THE YEAR 2021 “Commercials that Moved Consumers” award. TVCMs for DUO, CANADEL won the BRAND OF THE YEAR 2021 “Commercials that Moved Consumers”* award *Awarded to a commercial that was well
Slide 25: Other Initiatives: ESG Initiatives
Other Initiatives : ESG Initiatives We have shared our ESG efforts on our corporate site. We undertook following activities in 1Q. ESG activities we undertook in 1Q Environment ・Won the “2021 GP Environment Grand Prize” in recognition of our dedication to minimizing impact to the global environment.
Slide 26: Initiatives for 2Q and Beyond
０５ Initiatives for 2Q and Beyond
Slide 27: Further Strengthen Business Foundation
Initiatives for 2Q and Beyond：Further Strengthen Business Foundation Drawing on our know-how and expertise on nurturing new brands, as proven by CANADEL (selling four billion yen in two years), we will launch three new pivotal categories this fiscal year. • Brand name：DUO • Concept：To be disclosed E
Slide 28: CANADEL (Current Positioning)
Initiatives for 2Q and Beyond：CANADEL (Current Positioning) Steadily carving out market share among the 20s-40s target group, a latent market with less competitors. The brand positioning image we have observed for the all-in-one cosmetics*1 ：Sales volume*2 Omni-Channel*3 CANADEL (Currently) Older ag
Slide 29: CANADEL (Potential)
Initiatives for 2Q and Beyond：CANADEL (Potential) In general, women’s employment rate is on the rise, and we surmise that the market potential for all-in-one cosmetics, which help shorten time required for skin care, is high even among the younger age groups. Women’s employment rate Women’s free tim
Slide 30: CANADEL (Vision)
Initiatives for 2Q and Beyond：CANADEL (Vision) We are making efforts to fundamentally disrupt the current image of all-in-one cosmetics and redefine recognition of the all-in-one category. Image of current CANADEL’s vision all-in-one cosmetics Something seniors use Change awareness Don’t know what’s
Slide 31: CANADEL (Future Positioning)
Initiatives for 2Q and Beyond：CANADEL (Future Positioning) We will begin by addressing the beauty conscious younger audience, then expand to the bigger market, the older age group to become No.1 in the market. The brand positioning image we have observed for the all-in-one cosmetics*1 ：Sales volume*
Slide 32: CANADEL (Improving LTV)
Initiatives for 2Q and Beyond：CANADEL (Improving LTV) Drawing on our D2C strengths, we will continue to make improvements to our products based on customers’ feedback. We will also continuously update our products so that our customers will need them for a long time to come. Approx. 60% of feedback
Slide 33: Promoting Cross Selling
Initiatives for 2Q and Beyond：Promoting Cross Selling Drawing on our D2C strengths, we will promote cross selling by improving both product appeal and sales capability. Product Appeal Develop and enhance appealing product line-up Strengthen ability to propose products that cater to customers’ prefer
Slide 34: Strengthen Cross Sell Products
Initiatives for 2Q and Beyond：Strengthen Cross Sell Products In addition to core products (cleansing balm, all-in-one) that can become No.1 within the relevant categories, we will add products to the line-up, so that we can make additional proposals that cater to our customers needs. Product Appeal
Slide 35: Strengthen Ability to Propose Cross-sells
Initiatives for 2Q and Beyond：Strengthen Ability to Propose Cross-sells We will integrate, use, and analyze our database of 3 million customers, so that we may propose a customer experience that caters to our customers’ specific needs, issues. Sales Capability 2Q 3Q 4Q Implemen Begin interactive soc
Slide 36: Customer Acquisition Initiatives
Initiatives for 2Q and Beyond：Customer Acquisition Initiatives As we have nearly completed examination of the impact of new regulations applicable to ad placement, we will implement various initiatives, as highlighted below from 2Q onwards to accelerate customer acquisition, especially to strengthen
Slide 37: Customer Acquisition Initiatives: organic traffic and CRO
Initiatives for 2Q and Beyond：Customer Acquisition Initiatives We will strengthen non-paid, organic traffic and CRO* (improve website) to promote customer acquisition that is not reliant on advertising. We will renew the site to increase traffic We will analyze customer behavior using video and by i
Slide 38: Appendix
０６ ＡＰＰＥＮＤＩＸ
Slide 39: Company Profile
APPENDIX：Company Profile Company Profile Name Premier Anti-Aging Co., Ltd. Established December 2009 Toranomon Hills Mori Tower, Toranomon 1-23-1, Minato-ku, HQ Tokyo President and CEO Kiyoshi Matsuura Managing Executive Officer Koji Kawabata Managing Executive Officer Takahiro Toya Independent Outs
Slide 40: 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 41: 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 42: 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 43: 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 44: 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 also backed by
Slide 45: Market Trends (Cosmetics Overall)
APPENDIX：Market Trends (Cosmetics Overall) The domestic cleansing market including balms in 2020 was 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 Cosmetic
Slide 46: Environmental Initiatives
APPENDIX： 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 throug
Slide 47: 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 ¥120.7➔¥147.5 bil (Millions of Yen) Outbreak 1,500 ¥128.2 bil 22%UP 13%DOWN (2014-2019) (2019-2020) 1,400
Slide 48: 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) Domestic Market Size COVID-19 Outbreak 30,000 Skin care Non skin care cosmetic
Slide 49: 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 50: 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 51: 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 52: 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 53: Premier Anti-Aging
PREMIER ANTI-AGING