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Investor Presentation March 2025
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Disclaimer This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under the heading “Risk Factors” and elsewhere in the proxy statement and other materials filed with the U.S. Securities and Exchange Commission. Forward-looking statements are only predictions. The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document and other statements made from time to time by us or our representatives might not occur. Past performance is not indicative of future results. There is no guarantee that any specific outcome will be achieved. Investments may be speculative, illiquid and there is a total risk of loss. 2
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Table of Contents I. Executive Summary P5 II. Financial Results in 2024 P8 III. Business Strategies by Segments P15 IV. Capital Strategy P26 Appendix P29 4
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I. Executive Summary 5
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FY2024 Financial Performance Highlights SBC Medical Group Holdings Key Financials (FY2024) Total Revenues EBITDA¹ 43 % (YoY +1pt) ROE³ 28 % (YoY (4)pt) Basic EPS⁴ $0.48 (YoY +14%) $205 M (YoY +6%) $89 M (YoY +8%) Net Income attributable to SBC Medical Group Holdings Incorporated EBITDA Margin² $47 M (YoY +18%) 6 • SBC demonstrated healthy growth and YoY ¹ EBITDA = Income from operations + Depreciation and amortization expense + Impairment loss ² EBITDA Margin (%) = EBITDA / Total revenues ³ ROE = Net income attributable to SBC Medical Group Holdings Incorporated / Average of SBC Medical Group Holdings Incorporated's stockholder's equity (beginning of the period and end of the period) ⁴ EPS (basic) = Net income attributable to SBC Medical Group Holdings Incorporated / Weighted average shares outstanding
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Franchise Clinics Key Figures（FY2024） 7 • Strategic price revisions and clinic expansion are driving strong customer growth, particularly in aesthetic dermatology Repeat Rate² ³ ⁴ Number of Customers ² ³ /Unique Number¹ 251 clinics (vs Dec23 +43 clinics / +21%) 6.03 M (YoY +15%) Number of Franchise clinics¹ at the end of Dec24 Revenue Distribution¹ Total Revenue ¹ 1.90 M (YoY +11%)/ Revenue per Customer ² ⁵ ⁶ $186 (YoY (13)%) 1 The figure takes into account of the franchising of SBC brand clinics, Rize Clinic, Gorilla Clinic and AHH Clinics joining the SBC group 2 The figure takes into account franchising of SBC brand clinics, Rize Clinic and Gorilla Clinic 3 Excluding Free Counseling $1.12 B (YoY +1.0%) from Existing Clinics：$1.10B（YoY (1.4)%) from New Clinics：$0.03B 71 % 55%29% 16% 0.3% Medical +8% Aesthetic Surgery (7)% Aesthetic Dermatology +6% Overseas +48% SBC Clinics：$218（YoY (11)%) Rize Gorilla Clinics：$95 （YoY (22)%) 4 The percentage of customers who visited our franchisee’s clinics more than twice ⁵ Calculated at 151.4 JPY/1USD, 0.76USD/1SGD ⁶ After Point/Ticket Discount FY2024 Franchise Clinics Performance Highlights
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Ⅱ. Financial Results in 2024 8
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• Agile pricing strategy to expand customer base amid intensifying competition • Proactive measures to navigate market restructuring driven by hair removal salon & clinic closures 2024 Recap: Growth Despite Tougher Landscape … ＃of Facilities Has Outpaced Market Growth Though the Aesthetic Medical Market is Expanding… 4,349 2020 2021 2022 2023 3,375 +9% 1,526 2,142 2020 2023 +12% Headwinds Against Aesthetic Medical Market • Physician shortages as many doctors move into aesthetic in urban • Consumer complaints from aggressive sales & medical incidents The Regulator Flags Expanding Aesthetic Medical as a Concern • Major hair removal clinic chain Alicia Clinic filed for bankruptcy • Amid price competition, hair removal clinics’ bankruptcies rose Intensifying Competition Accelerates Market Shakeout 4 2 5 12 16 2020 2021 2022 2023 2024 # of Hair Removal Salon and Clinic Bankruptcies¹ Japan Aesthetic Medical Market (mm US$) (# of Facilities)# of Aesthetic Surgery Facilities ・・・・・・ 9 Source: Data Excel Pack_USA and Asia Pacific Aesthetic Medicine Market Source：Ministry of Health, Labor and Welfare ¹ Including medical hair removal CAGR CAGR Source：TOKYO SHOKO RESEARCH, LTD.
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Revenue Growth Driven by Diverse Services ¹Exchange Rate(Year-To-Date Ave.) FY2023 140.5 JPY/USD FY2024 151.4 JPY/USD • Revenue1 has steadily increased in line with the expansion of number of clinics even under JPY depreciation • Management services decreased mainly as a result of the termination of staffing services (mm US$) FY2023 Franchising Revenue Procurement Revenue Management Services Revenue Rental services Revenue Others Revenues 205.4 FY2024 FY2024 adjusted FX 221.4 FX ＋18.9 ＋1.6 (19.2) ＋8.8 ＋1.7 ＋16.0 193.5 10
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FY2023 Revenue Cost of Revenue Consulting and professional service fees Stock based compensation expenses Others 89.2 FY2024 FY2024 adjusted 109.1 FXStock based compensation expenses +11.9 +7.1 (5.1) (13.0) +5.4 +13.0 +6.9 82.9 11 EBITDA Growth Driven by Top Line • Core EBITDA1 2 shows steady growth even after one time cost of stock-based compensation stemming from IPO (mm US$) ¹ EBITDA = Income from operations + Depreciation and amortizations + Impairment loss ² Exchange Rate (Year-To-Date Ave.) FY2023 140.5 JPY/USD FY2024 151.4 JPY/USD 107.7
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Robust Balance Sheet Positioned for Growth Cash and cash equivalents Key Balance Sheet Figures (as of December 31, 2024) 301% Current Ratio 73% Capital Ratio 0.06x D/E Ratio US$125mm Selected Items from Balance Sheet (mm US$) Dec 31, 2024 Dec 31, 2023YoY Total assets 266 +7 259 Total current assets 184 +19 166 Cash and cash equivalent 125 +22 103 Property and equipment, net 9 (5) 14 Intangible assets, net 2 (18) 20 Total liabilities 71 (44) 115 Current liabilities 61 (31) 92 Total Stockholder’s equity 195 +51 144 SBC Medical Group Holdings Incorporated’s stockholders’ equity 195 +53 142 12 • With ample cash and minimal borrowing, funds are primarily allocated for growth investments
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13 • Supporting flexible pricing strategies for franchise clinics in response to industry changes ＋10％ Approximately 20% price increase in response to supply and demand changes in the hair removal market (April 2025) Sessions Current Price New Price 1 ¥20,000 ¥25,000 3 ¥45,000 ¥49,500 5 N/A ¥53,800 6 ¥54,200 Discontinued Upward Revision of Medical Hair Removal Prices¹ Rate of price increase ＋25％ ＋19％² Price Revisions in Dermatological Treatments ✓ Due to frequent discount campaigns at some clinic brands, actual prices have diverged from list prices, making the official pricing appear less competitive ✓ Strategic price revisions to maintain price competitiveness for select clinic brands (March 2025) ✓ Meanwhile, based on the highest-ever number of patient visits, spending on promotional activities is being reduced Dermatology clinics are shifting from insurance to self- funded aesthetics As aesthetic dermatology becomes more common, prices are decreasing Strategic Action for 2025 (Franchisee) ¹Comparison of current and new prices for the full-body + VIO course (excluding some franchise clinics ²Plan change from 6 sessions to 5 sessions, ratio calculation per session
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14 Strategic Response for 2025 (Franchisor) Optimization of Franchise Fees ConceptMajor Revisions to the Franchise Fee Estimated Impact • The revision will be implemented starting from April 2025 • If this revision had been applied starting in April 2024, the estimated negative impact on total revenues would have been c.10% • The impact for the fiscal year 2025 on total revenues and income from operations remains uncertain ~2025 Mar Fixed fee 2025 Apr～ Fees based on scale and revenue Small Large Small Large SBC SBC • Fee reductions in the first year of opening → Saving initial cost for new clinics with an underdeveloped customer base • Fees based on service scale → Adjusting fees according to the scale of SBC’s consulting services and the clinic's business size • In light of the challenging competition, we are revising franchise fees as part of our long-term growth strategy to support franchisees open new clinics, in order to expand and stabilize our business foundation
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Ⅲ. Business Strategies by Segments 15
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16 Aspiration Continued Market Expansion and #1 Market Leadership Positioning – Market growth the increasing penetration Aesthetic Medical – Accelerate multi-brand strategy • Become a medical service company responding to various customer needs globally, centered on aesthetic medical • Develop a strong business foundation for overseas business areas which will accelerate our growth going forward Priority Business Areas Medical Business Overseas BusinessAesthetic Medical Business Aspiration Towards 2027 Growth and Diversification of Revenue Sources – Orthopedics, Infertility Treatment / Gynecology, Ophthalmology, Alopecia (AGA) etc… Accelerating SBC's growth ＆Foundation building – Overseas: US and SE Asia Platform Business (B2B Business) leads further expansion of SBC’s business domain: Enterprise services (Employee benefit program), Consulting for self-funded medical services etc…
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No.1 Aesthetic Medical Group in Japan • Achieving continuous growth in both clinic and customer numbers for over 20 years • Market leader in Japan with the largest customer base and clinic network （000’s） Historical Trend of # of Clinics¹ (as of December 2024) Historical Trend of # of Gross Customer¹ ² 91 156 178 50 50 2020 2021 2022 2023 2024 206 228 +26% 1 The figure takes into account franchising of SBC brand clinics, Rize Clinic and Gorilla Clinic in Japan ² Excluding Free Counseling (# of Clinics) 2,296 3,875 4,457 1,343 1,569 2020 2021 2022 2023 2024 2,296 5,218 6,026 +27% New affiliated Clinics Existing Clinics Medical Business Overseas BusinessAesthetic Medical Business 17 CAGR CAGR New affiliated Clinics Existing clinics
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9％ 40.7mm 8% 24.9mm 26％ 11.2mn15.4mm Strong Growth Potential and Room for Expansion Women “Late teens”-30s (Current Core Customers) • Aesthetic medicine penetration continues to rise, driven by dermatological treatment growth • With 12% market penetration, expanding to middle-aged women and men offers significant growth potential Source: Company estimates based on data from the Ministry of Internal Affairs and Communications and Recruit Hot Pepper Beauty Academy (Based on the # of patients treated over the last 3 years) as of December 2024 Potential Aesthetic Medical Market/Penetration Rate(%) Women 40-60s Men “Late teens”-60s 1 as of March 2025 Gorilla Clinics for male laser hair removal Develop dermatology-focused clinics under the SBC brand Targeted marketing to reach middle-aged women Expand laser hair removal to dermatology services via Rize Clinics To Middle-aged Female Market To Capture Dermatology Market Growth (28 clinics1) (8 clinics1) (22 clinics1) Strategic Initiatives to Expand Market Reach To Male Market Specialize in the latest trending dermatology treatments (1 clinic1) 18 Medical Business Overseas BusinessAesthetic Medical Business Market penetration expanding due to growing demand for dermatological treatments
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Location Strategy Aligned with Regional Needs • Multi-brand strategy in core metropolitan areas to precisely meet diverse customer needs • Leveraging the SBC brand to establish comprehensive aesthetic clinics in regional cities, catering to diverse customer needs Core Metropolitan Areas Multi-brand strategy Expanding regional network with comprehensive clinics leveraging the SBC brand Comprehensive clinic brand "SBC" Regional Cities Core Metropolitan Areas Regional Cities ✓ Expanding a multi-brand strategy to capture diverse customer needs, segmenting price points and services ✓ Accelerating new brand launches in the high- growth dermatology sector to capitalize on market expansion 19 Medical Business Overseas BusinessAesthetic Medical Business
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Inbound Strategy • Driven by demand for Japan's safe, high-quality services, with strong growth led by Chinese customers • Enhancing multilingual support and leveraging Chinese social media to accelerate customer acquisition 1Calculated at 151.4JPY/1USD Strong Momentum in Inbound Revenue¹ Surging # of Inbound customers • Inbound-Focused Clinics • Translation App • SBC Resort Kijimadaira Clinic (mm US$) 2,639 2,908 4,590 8,009 2023 2024 7,229 10,917 +51% Key Initiatives of Inbound Strategy China Others 1.7 2.5 2023 2024 +49% (# of customers) Medical Business Overseas BusinessAesthetic Medical Business 20
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Medical Business Growth and Outlook • Expanding into profitable and promising fields such as orthopedics, ophthalmology, infertility treatment ／ gynecology, and alopecia treatment, leveraging expertise from private healthcare to drive further growth Growth in the Medical Business 21 ✓ Market-leading short stature treatment in Tokyo drives growth ✓ Leveraging expertise in aesthetic medical to expand joint pain treatment for further market penetration 2021 ・・・ 2024 2 6+38% 2021 ・・・ 2024 6 13+29% Revenue Trend (mm US$¹) ✓ ICL is driving growth as it replaces LASIK in the market. ✓ Offering comprehensive reproductive treatments, including egg freezing and ART ✓ Driving growth through new clinics, with leveraging RLC platform ✓ Largest multi-treatment AGA network (11 clinics), offering medication, hair transplants, and lasers ✓ Exclusive provider of FoLix in Japan, the latest hair growth laser 2021 ・・・ 2024 7 13+22% 2021 ・・・ 2024 9 18+28% CAGR CAGR CAGR CAGR Orthopedics Ophthalmology Infertility Treatment／ Gynecology Alopecia TreatmentRevenue Trend (mm US$¹) Roppongi Ladies Clinic (“RLC”) Revenue Trend (mm US$¹) Alopecia Treatment (Excluding Medication) Revenue Trend (mm US$¹) Medical Business Overseas BusinessAesthetic Medical Business ¹Exchange Rate(Year-To-Date Ave.) 151.4 JPY/USD
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Future Strategies in the Medical Business 22 SBC SBC Comprehensive clinic management support Decline in insurance medical fees Soaring labor costs Population decline Insurance - based Clinics • Beyond franchise expansion, we support insurance-based clinics nationwide adopt self-funded treatments, addressing reimbursement challenges and expanding our customer base Franchise Clinics Introduction of self- funded Medical treatment consulting Development of treatment menus Operational Architecture Education and Human Resource Support Procurement Support Customer acquisition etc. Consulting for the introduction of self-funded medical care Franchise type Consulting type Medical Business Overseas BusinessAesthetic Medical Business
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• In the US, Exploring a MedSpa and platform launch on the West Coast • In Asia, Expanding our business using Singapore’s AHH, acquired last year, as a regional hub 23 Expanding Southeast Asia operations with AHH Inc. as a hub ➢ Positioning it as our base for Asian expansion ➢ This acquisition increases SBC‘s overseas locations to 23 Expansion of the North American platform to Asia (in the future) Seeking to expand in Asia Asia North Americas (Mainly in USA) MedSpa Group Business West Coast expansion via M&A Expansion of Medical Operations Platform Business Strengthening and Globalizing Franchise Services through M&A Seeking to expand in North Americans Strategic Initiatives in Overseas Business １ １ 2 2 Medical Business Overseas BusinessAesthetic Medical Business Acquired Aesthetic Healthcare Holdings (“AHH”) in November 2024, operating 4 beauty and aesthetic brands with 21 locations in Singapore
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Experience & expertise Expanding the SBC owned aesthetic clinic group through M&A and startups in the US and Southeast Asia e.g., AHH Inc（Singapore） • Build a solid business foundation by 2027, focusing on the U.S. and Southeast Asia • Accelerating expansion via dual engines: SBC owned clinics and a high-growth franchise strategy Overseas Business: Overall Strategy 24 Through M&A Strengthen and globalize CRM Procurement Business Administration Recruitment Education Reservations, etc... Franchise Business Enhancements Development of SBC owned clinics SBC Franchise Clinic CustomersClinicsPlatformer Treatment Franchise service Treatment Medical Business Overseas BusinessAesthetic Medical Business SBC
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25 Recent Initiatives ● Launched the employee benefits program 'SBC Wellness' in November 2024 with 7 partner companies ● Building on our track record in corporate health management and preventive care to offer enhanced employee support SBC Wellness (employee benefits program) Alliance with B4A Inc., # of employees c.1,170 ● In September 2024, announced a business alliance with B4A Inc., a provider of DX tools for aesthetic medicine ● Promoting DX across the entire self-funded medical care area using B4A's DX technology and expertise • SBC accelerates growth with new initiatives: launching “SBC Wellness” and partnering with B4A Inc. to enhance franchise services ¹Listed on each company's website ● Apparel brand operator （# of employees c.6,600） ● Online insurance company （# of employees c.550） ● Apparel retailer （# of employees c.1,700） （Example of partners） # of employees c.70
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Ⅳ. Capital Strategy 26
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27 • Low stock liquidity makes trading difficult for institutional investors. ① Improve supply-demand dynamics and ② consider adding liquidity to ensure fair valuation Current Challenge on SBC’s Shares Ideal Progression for our Capital Situation 株 式 の 流動性改善 投資家数の増 加 追 加 流 動性供給 株価適正 化 ①Improve supply- demand dynamics Improving Liquidity InvestorsAttention Share Price Appreciation ② Additional liquidity provision Ideal Cycle Limited Liquidity LackofInvestors SharePriceRem ains Sluggish Current Cycle Current Challenges of SBC’s Shares
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28 Exploring Strategic Actions in Capital Markets1 • Exploring all measures to boost liquidity and attract investor interest • Focusing on improving both stock price and liquidity with timely and effective actions ①Efforts to improve supply- demand dynamics • Exploring new major shareholders • Share buybacks • Dividends ③ Virtuous cycles of stock liquidity and valuation ② Efforts to additional liquidity provision • Founder Share Sale & Block Trade • New Share Issuance • Warrant Exchange (Stock Consideration) 1The discussion of certain capital market actions on this slide is purely illustrative and does not constitute a commitment orobligation to undertake any such actions. These references are intended solely to provide context for potential strategic considerations and may not reflect actual future decisions or outcomes. The company will explore its options based on evolving capital market needs, market conditions, and other relevant factors
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Appendix 29
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Group Structure and Business Model SBC Medical Group Co., Ltd. • SBC provides comprehensive consulting and management services to the medical corporations and their clinics through a franchise model SBC Medical Group Holdings, Inc. Franchise Clinics Franchise fee 100% Total Revenue: US$1.1bn in FY2024 Japan US Management/ operational services Dermatology Hair Removal Total Revenue: US$205mm in FY2024 Fertility Treatment Alopecia Treatment (AGA) Orthopedics Aesthetic Surgery Dentistry and Others Consulting and Marketing Solutions Administrative Services Procurement Services Medical Equipment Leasing Our Major Services Ophthalmology 30
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Dentistry (9 clinics) Fertility Treatment & Women's Health (3 clinics) 31 Business Segment Overview 海外2院（ベトナム、usは海外バケットへ） Aesthetic Medical Business Medical Business Overseas Business • SBC offers a diverse range of brands and is expanding beyond Aesthetic Medical Business into Medical Business, Overseas Business, and platform businesses. Dermatology- focused (11 clinics)Surgery-focused （5 clinics ） Comprehensive (130 clinics) Hair Removal (28 clinics) Men’s Hair-removal (22 clinics) Alopecia Treatment (AGA) (11 clinics) Other Medical Specialties (9 clinics) Comprehensive (2 clinics: Irvine, Vietnam) Aesthetic Dermatology& Aesthetic (21 clinics) AHH As of end December 2024 ¹ Opened in March 2025 ¹
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Income Statement (Consolidated) (mm US$) FY24 FY23 24Q4 23Q4 % YoY % YoY Total revenues 205 +6% 194 44 (29)% 62 Franchising Revenue 61 +45% 42 16 (6)% 17 Procurement Revenue 55 +3% 53 11 (43)% 19 Management Services Revenue 53 (27)% 72 9 (54)% 19 Rental Services Revenue 16 +120% 7 5 +86% 3 Other Revenues 20 +9% 19 5 (20)% 6 Cost of Revenues 49 (12)% 56 11 (44)% 19 Gross Profit 156 +14% 137 34 (22)% 43 Operating expenses 86 +29% 67 29 +50% 19 Income from operations 70 (1)% 71 5 (80)% 24 Net income attributable to SBC Medical Group Holdings Incorporated 47 +18% 39 7 (54)% 14 Operating ExpensesIncome Statement (mm US$) FY24 FY23 % YoY Total operating expenses 86 +29% 67 Salaries and welfare 27 (0)% 27 Depreciation and amortization expense 2 (79)% 11 Consulting and professional service fees 15 +54% 9 Office, utility and other expenses 7 (24)% 9 Other 35 +233% 11 32
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Balance Sheet (Consolidated) 33 (mm US$) Dec 31, 2024 Dec 31, 2023YoY Total assets 266 7 259 Total current assets 184 +19 166 Cash and cash equivalent 125 +22 103 Account receivable – related parties 29 (5) 34 Customer loans receivable 10 +2 8 Other assets 20 (1) 21 Total non-current assets 82 (11) 93 Property and equipment, net 9 (5) 14 Intangible assets, net 2 (18) 20 Customer loans receivable 5 (1) 6 Long-term investments in MCs – related parties 18 (2) 20 Other assets 48 +15 33 (mm US$) Dec 31, 2024 Dec 31, 2023YoY Total liabilities 71 (44) 115 Total current liabilities 61 (31) 92 Accounts payable 14 (13) 27 Notes payable –related parties 0 (3) 3 Advances from customers – related parties 12 (11) 23 Income tax payable 19 +10 9 Other current liabilities 17 (14) 31 Total non-current liabilities 10 (13) 23 Notes payable – related parties 0 (12) 12 Other non-current liabilities 10 (1) 11 Stockholder’s equity 195 +51 144 SBC Medical Group Holdings Incorporated’s stockholders’ equity 195 +53 142
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Cash Flows (Consolidated) (mm US$) FY24 FY23% YoY Net cash provided by operating activities 21 (59)% 51 Net cash provided by (used in) investing activities (10) (633)% 2 Net cash provided by financing activities 23 +274% 6 Effect of changes in foreign currency exchange rate (11) 56% (7) Net increase in cash and cash equivalents 22 (57)% 51 Cash and cash equivalents as of the beginning of the period 103 +99% 52 Cash and cash equivalents as of the end of the period 125 +21% 103 34
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Reconciliation Table on Non-GAAP Financials (mm US$) FY24 FY23 24Q4 23Q4 (A) Total revenues 205 194 44 62 (B) Income from operations 70 71 5 24 (C) (D) Depreciation and amortization expense Impairment loss 4 15 12 - 1 15 3 - (E) =(B)+(C)+(D) EBITDA 89 83 21 27 (F) =(E)／(A) EBITDA Margin 43% 43% 47% 43% 35
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Our Philosophy • Our purpose is to improve the well-being of people around the world with the latest medical innovations and achieve the ultimate win-win for all Through 36 Dr. Yoshiyuki Aikawa Founder, Director (Chairman) & Chief Executive Officer
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Our Vision 2025 • To achieve further growth in Japan and overseas, we will expand our clinic network • By continuing to focus on the research and development of new medical technologies, medical devices, and cosmetics, we aim to increase our global presence with the listing on NASDAQ and establish ourselves as a leader in the healthcare industry Be the aesthetic medical group with the most customers in Japan Be the medical group with the most customers in Japan 2035 Be the medical group with the most customers in the world 2050 37
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Thank you SBC Medical Group Holdings / ir@sbc-holdings.com ICR, LLC / US Investor Contact / +1 (646) 277 1200 /William.Zima@icrinc.com 38