YA-MAN Facial Care Devices User Guide

: September 21, 2024
: YA-MAN

Table of Contents

Facial Care Devices
Specifications:
Product Usage Instructions:
Overview:
How to Use:
Safety Guidelines:
- Frequently Asked Questions (FAQ):
Q: What should I do if the product malfunctions?
Q: Can this product be used by individuals with sensitive
Q: How often should I use this product for optimal
- Read User Manual Online (PDF format)
- Download This Manual (PDF format)

Facial Care Devices

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Specifications:

Brand: YA-MAN LTD.
Copyright: YA-MAN LTD. All Rights Reserved
Fiscal Year: April 30, 2024
Net Sales: ¥32,023 million
Gross Profit Ratio: 60.8%
Operating Profit: ¥6,134 million

Product Usage Instructions:

Overview:

The product is designed to provide exceptional beauty solutions
through innovative ideas and product development.

How to Use:

Ensure the product is properly connected to a power
source.
Follow the specific instructions for the desired beauty
treatment.
Adjust settings as necessary to suit individual
preferences.
After use, clean the product as per the maintenance
instructions provided.

Safety Guidelines:

For safe usage of the product, please adhere to the following
guidelines:

Avoid using the product near water or in damp conditions.
Do not disassemble or attempt to repair the product
yourself.
Keep out of reach of children and pets.
Consult the user manual for troubleshooting tips and
maintenance advice.

Frequently Asked Questions (FAQ):

Q: What should I do if the product malfunctions?

A: If you encounter any issues with the product, refer to the
troubleshooting section in the user manual. If problems persist,
contact customer support for assistance.

Q: Can this product be used by individuals with sensitive

skin?

A: It is recommended to perform a patch test on a small area of
skin before using the product extensively, especially if you have
sensitive skin. Discontinue use if any irritation occurs.

Q: How often should I use this product for optimal

results?

A: The frequency of product usage may vary based on individual
needs and the specific beauty treatment being performed. Refer to
the user manual for recommended usage guidelines.

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Results of Operations for FY4/24

Results of Operations for FY4/24 (Fiscal year ended April 30, 2024)

YA-MAN LTD.

June 14, 2024

Results of Operations for FY4/24
Exceptional manufacturing that transforms beauty into reality is achieved through inexhaustible ideas and outstanding product development. We will continue to renew our definition of “beautiful” to help attain perfect beauty and bring delight and inspiration to the world.
1
Copyright YA-MAN LTD. All Rights Reserved.

Results of Operations for FY4/24
Overview of Results of Operations
2
Copyright YA-MAN LTD. All Rights Reserved.

Summary of Profits and Losses

Results of Operations for FY4/24

(Millions of yen)
Net sales
Gross profit (Gross profit ratio)
Selling, general and administrative expenses
Operating profit (Operating margin)
Ordinary profit Profit attributable to owners of parent Net income per share (Yen)

FY4/23 FY4/24

YoY

Remarks on major changes

42,996
26,147 (60.8%)
20,012
6,134 (14.3%)
5,917

32,023
19,128 (59.7%)
18,712
416 (1.3%) 1,010

China was affected by the ALPS treated water and the RF regulations. Japan saw delay in contribution to sales by
(10,972) new categories due to the front-loaded investment. Sales composition: beauty equipment 81%; cosmetics 15%; and others 4%
Gross profit slightly decreased due to the impact of
(7,018) valuation losses on some inventory procured to secure stock at the beginning of the COVID-19 pandemic.
R&D expenses increased due to initial expenses for the flagship store, expansion of the business in the U.S., and
(1,299) expansion of the activities of the HYOJO Science Lab. Investment in domestic advertisement expense was more efficiency oriented.
While a conservative and precautionary allowance for
(5,718) doubtful accounts for a portion of accounts receivable from China of 980 million yen has been recorded, cumulative operating profit remained profitable.
(4,906) Foreign exchange gains recorded due to yen depreciation.

3,913

398 (3,514)

71.12

7.24 (63.88)

3

Segment Profits and Losses

Results of Operations for FY4/24

Overseas, although profit declined due to the impact caused by factors such as refraining from buying Japanese products triggered by the ALPS treated water issue and market turmoil caused by RF regulations as well as the recording of a conservative and precautionary allowance for doubtful accounts for a portion of accounts receivable from China, the Company has continued to maintain the position as the top facial care device brand in China. In Japan, front-loaded investment in shavers/hair care and other new categories as well as in measures to increase repeat direct sales still continued, resulting in the failure to contribute to sales growth.

Net sales

(Millions of yen)

FY4/23

FY4/24

YoY

Operating profit

FY4/23

FY4/24

YoY

Home shopping sales
Store sales

6,666 7,953

4,215 7,473

(2,451) (480)

2,299 1,826

911 (1,387) 994 (831)

Direct sales

9,922 8,498 (1,423) 4,587 2,672 (1,915)

Overseas sales

17,894 11,256 (6,637) 6,870 3,067 (3,803)

Others

559

580

+21

268

301

+32

Adjustment*

(9,717) (7,531) +2,186

Total

42,996

32,028 (10,972) 6,134

416 (5,718)

*Adjustment includes corporate expenses, such as product development and administrative expenses. 4

Balance Sheet

Results of Operations for FY4/24
(Millions of yen)

April 30, April 30,

2023

2024

Change

April 30, April 30,

2023

2024

Change

Current assets
Cash and deposits
Accounts receivables Allowance for doubtful accounts
Inventories

28,566 26,016

16,146
4,935
5,132

16,605
4,834 (980)
4,056

(2,550) Liabilities

+459

Trade payables

(101) Interest(980) bearing debt

(1,075)

5,543 3,976 (1,567)

1,521

782 (738)

1,351

729 (622)

Non-current assets
Total assets

2,412 3,073 30,979 29,090

+660 Net assets
Liabilities
(1,889) and net
assets
Equity ratio

25,435 25,113 30,979 29,090 82.1% 86.3%

(322)
(1,889) +4.2pt
5

Cash Flows

Results of Operations for FY4/24
(Millions of yen)

FY4/23

FY4/24

Change

YoY

Cash flows from operating activities
Cash flows from investing activities
Free cash flows
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of period

986 1,931

(632)

(950)

354

980

(1,223) (1,347)

(502)

459

15,691 16,151

Although profit before income taxes decreased, income increased due to an improvement in
+945 working capital, including lower inventory due to inventory reduction, and lower income tax payments. Expenses increased due to more aggressive investments than the previous fiscal year such
(318) as the initial investment for the opening of the Ginza flagship store in November 2023 and the replacement of the e-commerce system in February 2024. Despite aggressive investments, factors
+626 including improvements in working capital led to an increase in income.
Expenditures increased due to the payment of a
(123)commemorative dividend for the 45th founding anniversary.
+962
+459

6

Results of Operations for FY4/24
Progress on Our Medium-Term Management Plan and
Medium-Term Investment Plan
7
Copyright YA-MAN LTD. All Rights Reserved.

What We Aim for under the Medium-Term Management Plan

Results of Operations for FY4/24

As a beauty equipment manufacturer, we aim to become a “global brand company” based in Japan.
Growth investment to achieve targets

Global

Product enhancement

Technology enhancement

Service enhancement

Pairing beauty devices with
cosmetics

Joint research with academic-industrial
alliance

Entering new product categories

Expansion of FACE LIFT GYM outlets

HYOJO (Facial Expression) Research Lab

Brand-building
Japan

8

Branding

Medium-term investment plan

New categories will be first launched in Japan and then progressively launched in overseas countries as well.
We will especially focus on the new hair care/shavers categories as the brands to be developed.

Overseas
China
Facial care devices
New categories

Beauty equipment
The U.S.
Facial care devices
New categories

China
ONLY MINERALS

Cosmetics
The U.S.
ONLY MINERALS

Results of Operations for FY4/24

Progress in the fiscal year under review

In China, we launched IPL depilators* and started the full-scale roll out of HAKASE BEAUTE. In the U.S., we will strengthen the sales of Medi Lift PLUS, which has obtained FDA approval, along with the sales of hair care products.

Overseas China

Beauty equipment

Beauty equipment
The U.S.

China

Cosmetics

Facial care devices
IPL depilators*

Facial care devices
Hair care

Full-scale deployment

Japan

Beauty equipment

Cosmetics

Japan

Beauty equipment

Facial care devices
Optical beauty equipment

Hair care
Shavers

Strengthen repeat sales

Facial care devices
Optical beauty equipment

Hair care Shavers

Oral care
Exclusive beauty medical care products

*Not sold in Japan.
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Integration of Beauty Equipment and Cosmetics

Results of Operations for FY4/24

Medium-term investment plan

Progress in the fiscal year under review

We intend to build the foundation for repeat sales by enhancing the Company’s original functional cosmetics that would improve the functions of our beauty equipment further.

Design Lift Sales of electrode pad repeat business model to regular customer grew steadily

Repeat sales of electrode pads
Steady growth in the number of regular customers for the needle cosmetics series, the cumulative sales of which in Japan have surpassed one million units
10

Joint Research through Industry-Academia Collaboration

Results of Operations for FY4/24

Medium-term investment plan

Progress in the fiscal year under review

Through joint research with universities, we will verify the specific efficacy and safety of products of the Company and aim to elucidate unique mechanisms that will lead to future product development. Results obtained through research will be given back to the development of beauty technologies through the publication of papers, etc., leading to the further development of the beauty equipment industry.

Promotion and results of the joint research by the Company’s research site “HYOJO Science Lab” and the University of Tokyo
Establishment and demonstration of reliable beauty technologies
Three papers published and two papers posted (to be published during FY4/25)
Development of new facial care technology “CERTEC”
(Launch of YA-MAN THE MIYABI)

HYOJO (Facial Expression)
Science Lab

Industry-academia collaboration

Strengthened investment at HYOJO Science Lab and commenced research on the cell system.
Verification of the beauty effect of blue-green light (505 nm) Synergies from electricity and heat multiplication Research on expression of beauty genes using new
technologies
11

Creation of New Categories

Results of Operations for FY4/24

Medium-term investment plan
Beauty medical care
The market size of beauty care (based on revenues of medical institutions) has reached approximately 400.0 billion yen. This is a promising new category expected to continue expanding. In addition to “medical equipment” used in medical institutions such as beauty dermatology clinics, we aim to sell beauty equipment for home use and cosmetics solely sold within medical institutions.
There are about 6,000 beauty clinics nationwide.
Beauty dermatology clinics: About 4,500 clinics Beauty surgical clinics: About 1,500 clinics

Progress in the fiscal year under review
Beauty medical care
Launched the first product for medical institutions, Hydra Bright Skin
Signed a consulting contract with doctors to develop sales channels and products for medical institutions. Started developing beauty medical care devices.

Oral care
Starting with oral irrigators, we will enter into the oral care category where growth is observed both in Japan and overseas. In Japan, we will develop dental clinic routes and enhance product lineups. Based on the sales results in Japan, we aim for global sales expansion.

Oral care
Launched oral irrigator Jet Floss
Expanded to approximately 700 home appliance stores throughout Japan. Started sales through the dental channel.

12

Further Deployment of Face Lift Gym

Results of Operations for FY4/24

Medium-term investment plan
Technologies accumulated by “HYOJO Science Lab” and new products will be disseminated through Face Lift Gym, and obtained customer data will be accumulated for feedback, leading to further advancement of technologies. It is planned that Face Lift Gym will be adjacently established in YA-MAN’s first large-scale flagship store to be opened in Tokyo in 2023.

Progress in the fiscal year under review
The Company opened the flagship store “YA-MAN THE STORE GINZA” in Ginza, Tokyo in November 2023.
Face Lift Gym was adjacently established in the store in January 2024, where dedicated trainers help “create beautiful people” using beauty equipment, according to customers’ concerns. Measured skin data is fed back to “HYOJO Science Lab.”
Sales of the flagship store and Face Lift Gym exceeded initial expectations and are widely featured in media such as television and magazines.

HYOJO (Facial Expression)
Science Lab

FACE LIFT GYM

13

Global Development
Medium-term investment plan
Copyright YA-MAN LTD. All Rights Reserved.

Results of Operations for FY4/24

Progress in the

fiscal year under review

Obtained medical

[China]

equipment certification

The Company obtained NMPA approval for IPL depilators* in

April 2024.

Will be launched in 2024 *This product is not sold in Japan.

The Company Applied for NMPA approval for the RF facial

care devices.

(Scheduled to be released during FY4/25)

The Company Obtained NMPA approval for the ONLY

MINERAL liquid foundation and color serum.

[The U.S.]

In September 2023, FDA-approved Medi Lift PLUS was

launched.

The Company commenced the application for the

subsequent model.

Strengthen global investment
[China] YA-MAN (ZHEJIANG) E-COMMERCE CO.,LTD was established in January 2024. In addition to existing sales channels through agencies in China, the Company develops its unique direct sales channel.
[The U.S.] The Company began exhibiting Medi Lift PLUS hair care products (hair dryers and hair irons) at various trade shows.

14

Numerical Targets

Results of Operations for FY4/24

The net sales target of 50.0 billion yen planned for the fiscal year ending April 30, 2025 in the Medium-Term Management Plan is expected to be delayed by one year. There is no change to the target of net sales of 70.0 billion yen for the fiscal year ending April 30, 2028.

110000.0

8800.0 6600.0

Our own products Cosmetics Purchased products

4400.0

Net sales
¥32.0 billion
¥1.2 billion

2200.0 00

¥4.8 billion
¥26.0 billion

2024

22002255

¥100.0 billion

¥70.0 billion

¥7.0 billion ¥20.0 billion

¥50.0 billion

¥5.0 billion

20 ¥10.0 billion

Operating profit

¥4.0 billion

¥7.0 billion

¥55.0

¥39.0 billion

billion

¥73.0 billion

22002266

22002288

22003300
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Additional Measures

Results of Operations for FY4/24

Reasons for delaying the initial net sales target of 50.0 billion yen for the fiscal year ending April 30,
2025 to the fiscal year ending April 30, 2026
In China, due to the impact of the ALPS treated water issue, market turmoil related to RF regulations, and the stagnation of China’s domestic economic environment, the initial net sales target of 50.0 billion yen for the fiscal year ending April 30, 2025 has been delayed to the fiscal year ending April 30, 2026, as the Company expects some time for recovery.
Considering these circumstances, to strengthen financial resilience to cope with environmental changes, a conservative and precautionary provision of allowance for doubtful accounts for a portion of accounts receivable from China has been recorded. (No specific losses from bad debts or uncollected amounts have occurred at this time.)

Additional measures due to partial changes in the plan
Acceleration of global expansion
Diversifying access to the Chinese market (Entry into the B2C business through the establishment of YA-MAN (ZHEJIANG) ECOMMERCE CO., LTD.)
Accelerate the development of overseas markets outside China
Strengthen competitiveness in Japanese market
Strengthen lineups in new categories (oral care and beauty medical care).
390Consider expansion into the healthcare field.

16

Results of Operations for FY4/24
Earnings and Dividend Forecasts

17

Earnings Forecasts

Results of Operations for FY4/24

Net sales are expected to increase by 3.0 billion yen to 35.0 billion yen compared to the previous fiscal year. Operating profit is also expected to increase by 2.08 billion yen to 2.5 billion yen compared to the previous fiscal year. (An increase of 1.1 billion yen in operating profit compared to the previous fiscal year is expected, even excluding the impact of the allowance for doubtful accounts in FY4/24.)
(Billions of yen)

FY4/24 FY4/25 YoY Change Results Forecast Change (%)

Contents of major changes

Net sales
Operating profit
Ordinary profit

32.0 0.42 1.02

35.0 2.5 2.2

+3.0 +2.08 +1.08

Japan: Increase sales at the Ginza flagship

+9.3%

store, increased sales in new categories Overseas: Increase sales at YA-MAN

(ZHEJIANG)

Cost reduction through the review of

advertisement measures and a decrease

+500.6% in inventory valuation losses and

provisions for doubtful accounts

recorded in the previous fiscal year

+117.6%

Increase in operating profit despite decrease in foreign exchange gains

Profit

0.39 1.55 +1.16 +289.1%

18

Dividend Forecast

Results of Operations for FY4/24

The year-end dividend for the current fiscal year will be 4.75 yen per share, as announced on March 14, 2024. As a result, the annual ordinary dividend for the current fiscal year will be 9.00 yen per share. The dividend forecast for the next fiscal year is also expected to be 9.00 yen per share, the same as the current fiscal year. The final amount will be determined based on factors including the full-year performance.
(Yen/per share)

FY4/25 Forecast

FY4/24 Results

Interim dividend

4.25

Year-end dividend

4.75

Total annual ordinary dividend
Basic dividend policy

9.00

As a general rule, we pay stable, ongoing dividends every fiscal year, and the final amount will be determined by taking into account the full-year results and other factors.

19

Improvement of Shareholder Benefit System

Results of Operations for FY4/24

In order to thank the daily support of our shareholders and to deepen their understanding of our products and business, we offer special benefits to them. Previously, we offered the shareholder discount coupons that can only be used at the Company’s direct sales website (YA-MAN Online Store).

However, the revisions to the direct sales system will enable shareholders to use the shareholder discount coupons not only at YA-MAN Online Store but also at the Company’s flagship store and directly-operated store(*) (including Face Lift Gym) from July 27, 2024. This improvement will increase the opportunity for shareholders to hold our products directly in their hands and use them at our flagship store and directlyoperated store.

For the categories and details of shareholder benefits, please refer to the next page.

*Our flagship store and directly-operated store refer to YA-MAN the store GINZA and Namba SkyO Store.

Results of Operations for FY4/24

Number of shares held

Less than one year

Holding period

One year or more but less than two
years

Two years or more but less than five
years

Five years or more

100 shares to less than 500 shares

One shareholder discount coupon worth 5,000 yen

One shareholder discount coupon worth 7,000 yen

One shareholder discount coupon worth 10,000 yen

One shareholder discount coupon worth 13,000 yen

500 shares or more

One shareholder discount coupon worth 14,000 yen

One shareholder discount coupon worth 17,000 yen

One shareholder discount coupon worth 20,000 yen

One shareholder discount coupon worth 23,000 yen

(Note) The holding period refers to the period during which shareholders held shares continuously from the date on which the acquisition of the relevant number of shares was registered or recorded in the shareholder register to the reference date. “One year or more” is conditioned upon that, as of the reference date of April 30, 2024, the holding of the relevant number of shares is registered or recorded at least three consecutive times under the same shareholder number in the shareholder register on October 31 and April 30 of each year. “Two years or more” is conditioned upon that, as of the reference date of April 30, 2024, the holding of the relevant number of shares is registered or recorded at least five consecutive times under the same shareholder number in the shareholder register on October 31 and April 30 of each year. * “Five years or more” is conditioned upon that, as of the reference date of April 30, 2024, the holding of the relevant number of shares is registered or recorded at least 11 consecutive times under the same shareholder number in the shareholder register on October 31 and April 30 of each year.

Dividends

Results of Operations for FY4/24

4.5
Commemorative dividend for the 45th founding
anniversary

3.60

4.00

4.50

4.25

4.75

4.50

1.80

2.00

4.25

1.80

2.00

F4Y34/17 F4Y44/18 F4Y54/19 F4Y64/20 F4Y74/21 F4Y84/22 F4Y49/23 F5Y04/24 5F1Y4/25 (Results) (Results) (Results) (Results) (Results) (Results) (Results) (Results) (Forecasts)

Interimdividend Year-end dividend Special dividend Commemorative dividend

Note: Dividends per share are adjusted to reflect the stock split on November 1, 2017.

22

Results of Operations for FY4/24
· Forecasts regarding future performance in these materials are based on certain assumptions judged to be valid and information currently available to YA-MAN. Actual performance may differ significantly from these forecasts for a number of reasons.
· These materials were prepared for the purpose of providing information. This is not a solicitation to purchase securities issued by YA-MAN.
· Individuals are responsible for how information in these materials is used. YA-MAN assumes no responsibility whatsoever for any losses resulting from errors or other problems involving this information, revisions to numerical goals, or any other issue concerning the use of these materials.
23
Copyright YA-MAN LTD. All Rights Reserved.