BEAUTY GARAGE : FY2022 Presentation Material

Beauty Garage Inc.

FY 2022 (Fiscal Year Ended April 2022)

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	531 (including 369 full-time employees) (on a consolidated basis at the end
of April 2022)
	Sapporo / Sendai / Niigata / Kanazawa / Tokyo / Saitama / Nagoya /
Offices	Osaka / Hiroshima/ Fukuoka
Kashiwa DC / Amagasaki DC / Representative office in Guangzhou, China /
	Singapore / Taiwan / Vietnam
Group Companies	Japan: 10 companies, overseas: 3 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 omnichannel combining online with offline. The biggest feature is operating the Japanese top wholesale EC

site for beauty salons BEAUTY GARAGE Online Shop.

Highlights of FY 2022 (Consolidated/Cumulative)

In terms of profits, although it did not reach the forecast at the beginning of the term, sales and profits continued to increase in all segments, and steady growth was achieved.

■Sales		23,401 million yen	Y-o-y 119.4%
■Ordinary profit		1,215 million yen	Y-o-y 112.5%
Sales Composition ratio	Other Solution Business	Business segment profit composition
	4.4%		（million yen）
	(1,025 million yen)
Store Design Business	Y-o-y 167.1%
16.5%
(3,856 million yen)			Wholesale	954
Y-o-y 113.7%
			Business
Sales			Store Design	269
compositi		Business
on ratio
			Other Solution	124
Wholesale Business		Business
79.1%			Adjustment
(18,518 million yen)			-146
Y-o-y 118.8%		amount

※Overseas sales amounted to 210 million yen (Y-o-y 98.9%)

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Main Topics for FY 2022

May 2021	- Expanded BG EXPRESS, a store specializing in beauty products for
	professionals, in Shibuya
	- Started offering "BG Denki", a low-voltage power supply service for beauty
	salons
September 2021	- Grouping Beauty Reuse（Current BG Reuse） the second-hand sales business
	of beauty equipment thorough M&A
November 2021	- Established a Gym Garage to sell fitness equipment and supplies, and entered
	the field for fitness/sports gyms
February 2022	- Started business for BtoBtoC by "Salon.EC", an online shop construction
	service dedicated to beauty salons
April 2022	- Started sales of "QUICK BOILER", a pressurized hot water supply system
	exclusively for salons, jointly developed with Rinnai

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Overview Earnings for FY 2022

(Consolidated/Cumulative)

■While sales exceeded the forecast（+340 million yen compared to the forecasted sales at the beginning of the term）, the gross profit margin fell more than expected due to the effects of high raw material and transportation costs, the depreciation of the yen, etc. The result was lower than expected（down 89 million yen from the forecasted ordinary income at the beginning of the term）.

	FY 2021			FY 2022			Y-o-y	VS.
Consolidated								forecast
Actual	Sales		Actual	Sales		(%)
			(%)
	(Million yen)	(%)		(Million yen)	(%)
Sales	19,597	100.0		23,401		100.0		127.7	101.5
Gross margin	6,116	31.2		6,093		26.0※		99.6	-
Selling , General and	5,115	26.1		4,891		20.9※		95.6	-
Administrative
Expenses
Operating profit	1,001	5.1		1,202		5.1		120.1	92.4
Ordinary profit	1,080	5.5		1,215		5.2		112.5	93.1
Net profit attributable	654	3.3		709		3.0		108.5	89.2
to shareholders of the
parent company

*The new revenue recognition standards have been applied from the current fiscal year. This lowered the gross profit	5
margin ratio and the SGA ratio. (Conventional accounting standard would result in a gross profit margin ratio of 30.7% and

SGA ratio of 25.5%)