BEAUTY GARAGE : 3Q FY 2024 Presentation Material

Beauty Garage Inc.

3Q FY 2024 (Fiscal Year Ended April 2024)

Financial Report Supplementary Material

The opinions and estimates described in this material are based on assumptions made by the Company at the time the material was prepared and does not guarantee the accuracy of the information. Please note that they may vary significantly from actual earnings and results due to changes in various factors.

Company Overview

Company name	Beauty Garage Inc.
Headquarters	1-34-25Sakura-shinmachi, Setagaya Ward, Tokyo
Established	April 24, 2003
Capital	768,385,250 Yen
Securities exchange	Tokyo Stock Exchange Prime Market (Securities code: 3180)
listing
Director and CEO	Hideki Nomura
Total Employees	509 (including 368 full-time employees) (on a consolidated basis at the end
of January 2024)
	Sapporo / Sendai / Niigata / Kanazawa / Tokyo / Saitama / Nagoya /
Offices	Osaka / Hiroshima/ Fukuoka
Kashiwa DC / Amagasaki DC / Representative office in Guangzhou, China /
	Singapore / Vietnam
Group Companies	Japan: 9 companies, overseas: 2 companies

The Company operates (i) BtoB sales business of beauty products, (ii) store design business and (iii) solution business of start-up and prosperity	2
support for beauty salons through the OMO combining online with offline. The biggest feature is operating the Japanese top wholesale EC site for

beauty salons BEAUTY GARAGE Online Shop.

Highlights of 3Q FY 2024 (Consolidated/Cumulative)

■Sales	21,662
■Ordinary profit	1,180

million yen million yen

Y-o-y 113.2%

Y-o-y 141.0%

Sales Composition ratio

Business segment profit composition

Store Design Business

10.5%

(2,274 million yen)

Y-o-y 101.0%

Other Solution Business

6.5%

(1,413 million yen)

Y-o-y 122.3%

Sales

composit ion ratio

Wholesale Business

83.0%

(17,973 million yen)

Y-o-y 114.3%

Wholesale

Business

Store Design

Business

Other Solution

Business

Adjustment

amount

（million yen）

1,053

（Y-o-y 149.6%）

88

（Y-o-y 77.7%）

178

（Y-o-y 114.4%）

-150

3

Main Topics for 3Q FY 2024

November

・Exhibited at "Tokyo Nail Expo 2023", One of the largest nail exhibitions in Japan

・450,000 colorant containers were collected and recycled into aluminum as a recycled resource. Donated profits to tree planting activities

December

・Started handling Dyson products as an official distributor

January

・Launch of "Bluetax," a cloud tax return service with tax accountants for beauty salons

・Acceptance of Noto Peninsula earthquake
relief donations using "BG Points" and
donations to disaster-affected areas	4

Overview Earnings for 3Q FY 2024

(Consolidated/Cumulative)

■While sales and gross profit continued to grow stably in double digits, we were able to reduce the SG&A expense ratio by creating economies of scale, and operating income, ordinary income, and net income significantly exceeded the previous fiscal year.

						（Million yen）
Consolidated	3Q FY 2023		3Q FY 2024		Y-o-y
	Actual	Sales		Actual	Sales
Sales	19,133	100.0%		21,662	100.0%		113.2%
Gross margin	4,872	25.5%		5,489	25.3%		112.7%
Selling , General and	4,038	21.1%		4,318	19.9%		106.9%
Administrative Expenses
Operating profit	834	4.4%		1,170	5.4%		140.4%
Ordinary profit	837	4.4%		1,180	5.4%		141.0%
Net profit attributable to	540	2.8%		774	3.6%		143.3%
shareholders of the
parent company

5

Y-o-y

売上高・経常利益率の推移（連結）

■Normally, in the 3Q, business performance is often sluggish due to low demand for salons to open and the number of business days, but in this 3Q, we were able to achieve record sales on a quarterly basis. The ordinary profit margin for this fiscal year has remained stable in the mid-5% range.

（million yen）															112.8％	20.0%
8,000
				Sales												7,296	7,176	7,165	7,320
				Ordinary Profit Ratio								6,565	6,488
								6,170		6,099		6,259	6,078
6,000									5,376		5,665								15.0%
							5,054
				4,243		4,535
		3,938
4,000	3,773	3,775	3,836														10.0%
				7.5%			7.1%					6.9%				7.1%
2,000																5.0%
							5.9%
					4.6%				5.3%	4.9%					5.0%		5.5%	5.4%	5.5%
	4.2%				4.1%					4.3%
	4.0%							3.5%		3.9%
			3.0%
0																			0.0%
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q
																			6
		FY2020			FY2021			FY2022			FY2023			FY2024

Selling, General and Administrative Expenses

(Consolidated/Cumulative)

	3Q FY 2023		3Q FY 2024			主な要因
	Actual		Actual	Y-o-y
Personnel expenses	1,809		1,973			 Increase in part-time and dispatched workers at
(Directors' remuneration/Salaries and		109.1%			distribution centers
allowances/Legal welfare expense/Commuting
costs/Temporary staffing costs, etc.)
Logistics related expense	389		408	104.8%
(Storage charge/Rent for logistics center)
Rent	231		234	101.3%
(Office/Showroom)
Advertisement and	325		293	90.3%			Abolition of catalog publication
promotion expenses				Exhibiting at Tokyo Nail Expo 2023
IT equipment costs/software	298		296	99.4%		 End of software depreciation for core systems
amortization costs				Increased development costs
Commission paid	391		433	110.7%			Increase in payment fees due to increased sales
Goodwill	119		105	88.5%		 Decreased due to completion of goodwill
amortization/depreciation				amortization related to Adachi Factory
	473		572			 Increase in recruitment-related expenses,
Other		120.8%			outsourcing expenses, and travel and
			transportation expenses due to increased
							business trips
OPEX	4,038		4,318	106.9%				7

Selling, General and Administrative Expenses

(Change in sales ratio)

■By continuing efforts to reduce the SG&A expense ratio, the SG&A expense ratio finally improved to below 20%.

*Also for FY 2020 to FY 2021, the numbers are calculated by retroactively based on

the new revenue recognition standards that have been applied from the current fiscal year.

	21.6%	21.8%
			20.9%	20.3%
				19.9%
20.0%
10.0%	9.1%	9.3%	9.1%	9.0%	9.1%

5.0%
	2.5%
2.4%	2.2%	2.0%	1.9%
1.8%
1.6%	1.6%
		1.2%	1.4%
				1.5%
1.3%	1.2%	1.2%	1.1%
0.0%
FY2020	FY2021	FY2022	FY2023	3Q FY2024	8

（Million yen）

Balance Sheet Summary (Consolidated)

■Both the equity ratio and current ratio improved. In addition, a new interim dividend will be paid from this fiscal year (during the 3Q period).

FY 2023

3Q FY 2024

Key change factors

Actual

Composition

Actual

Composition

Compared with

(Compared to the end of the

the end of the

previous fiscal year)

ratio

ratio

previous fiscal

year

Assets

12,063

100.0%

12,732

100.0%

105.5%



Decrease in trade

▲235

Current assets

9,739

80.7%

10,019

78.7%

102.9%

receivables



Increase in product

＋559

inventory



Increase in security

+328

Fixed assets

2,323

19.3%

2,712

21.3%

116.7%

deposit/security deposit



Increase in investment

＋80

securities



Decrease in goodwill

▲52

Liabilities

5,819

48.2%

5,911

46.4%

101.6%



Decrease in trade

▲226

Current liabilities

4,463

37.0%

4,087

32.1%

91.6%

payables



Decrease in accrued

▲146

expenses

1,355

1,824



Increase in long-term

＋405

Fixed liabilities

11.2%

14.3%

134.5%

debt

Net assets

6,244

51.8%

6,820

53.6%

109.2%



Net Income

+774



dividend payment

▲202

Equity ratio

50.0％

52.1％

Current ratio

218.2％

245.1％

9

114.3％

Y-o-y

3Q FY 2024 Wholesaling Business（i）

(Changes in sales/gross profit margin ratio)

■Sales ■Segment Profit

17,973

1,053

million yen million yen

（Y-o-y 114.3%）

（Y-o-y 149.6%）

■Sales continued to grow at a high rate due to an increase in EC orders and strong sales of cosmetics and materials. The gross profit margin has stopped declining and remains stable due to efforts to reduce purchasing prices and the effects of reviewing selling prices.

																																													6,083
（Million yen）					Sales																																					6,000	5,990	5,899
6,000								Gross profit margin ratio																		5,023	5,142	5,261	5,320
4,500									4,078	4,613	4,451	4,506	4,536
															3,637
2,946 3,138 2,876 3,030 3,262
													Due	to application	of the	new	revenue		recognition	standards	from
3,000																35.1%													FY2022,the	profit	margin	will decline in	appearance.
34.7%	34.1%	32.9%	33.8%	33.7%	34.7%	33.5%
1,500																										29.6%	28.5%	27.0%	26.9%	26.9%	26.3%	25.9%	26.2%	26.4%	26.0%	26.3%
0
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q
						FY2020						FY2021									FY2022								FY2023							FY2024

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

10