Announcement of Capital and Business Alliance with Yanagi Capital Partners, CP Group and CTBC

Ci FLAVORS Co., Ltd. (pronounced: C Flavors, headquarters: Minato-ku, Tokyo, Representative Director & CEO: Yoshiaki Okura, hereinafter “Ci FLAVORS”) has reached a strategic capital and business alliance agreement with Yanagi Capital Partners, a newly formed private equity fund manager focused on supporting Japanese consumer companies in accessing new markets and growing their international revenues. Through this capital and business alliance, Ci FLAVORS will benefit from the strategic networks and market expertise of the two limited partners of Yanagi Japan Consumer Fund I LP, namely CP Group (with its flagship company being Charoen Pokphand Group Co., Ltd., incorporated and headquartered in Thailand, hereinafter “CP Group”), one of the leading conglomerates in Asia, and CTBC Financial Holding (incorporated and headquartered in Taiwan, hereinafter “CTBC”), one of the leading financial institutions in Asia. By means of this strategic partnership, Yanagi Japan Consumer Fund I LP will acquire a minority equity stake in Ci FLAVORS.

• Purpose of the Capital and Business Alliance

Ci FLAVORS operates as a holding company executing growth strategies across diverse beauty and lifestyle brand businesses. Our portfolio includes COSME COMPANY Co., Ltd., which oversees nine companies selling beauty and lifestyle brand products; She Style Co., Ltd., which manages one company engaged in both OEM business and product sales; AHRES Co., Ltd., which operates directly-managed stores primarily in department stores; dr365 Co., Ltd., which develops D2C brand sales; and ANKER CREATE Co., Ltd., which supports group companies’ planning and manufacturing through global development and procurement of raw materials and resources. We also have overseas subsidiaries established in the United States and China to advance our international business.

Yanagi Capital Partners is a newly launched private equity fund manager focused on mid-market consumer companies in Japan looking to expand their sales and operations to overseas markets. Through its affiliation with CP Group and CTBC, Yanagi Capital Partners offers synergies and value-add in international expansion across Asia, Europe and the US.

CP Group is a multinational conglomerate founded in 1921 with headquarters in Bangkok, Thailand. It operates a diverse business across its 8 business lines, including Agro-Industry and Food Business, Retail and Distribution Business, Media and Telecommunications Business, E-Commerce and Digital Business, Property and Infrastructure Development Business, Automotive and Industrial Products Business, Pharmaceuticals Business to Finance and Investment Business. CP Group has been integrating the strengths from each business group, in order to sustainably maximize the benefits and deliver the utmost value to the country, people, and then the company. CP Group operates in over 23 countries, particularly throughout Southeast Asia and China where it is one of the leading retail & distribution operator with over 17,000 stores across convenience, supermarket and cash-and-carry formats, foodservice distribution, as well as online and omnichannel platforms.

CTBC is one of the leading financial institutions in Asia. The group operates across banking, life insurance, securities, venture capital and other financial services, with a presence in 14 countries and regions through more than 400 offices worldwide. CTBC maintains an extensive international banking service network with particular strengths in Japan, China, Southeast Asia and North America.

This capital and business alliance will combine Ci FLAVORS’ brand strength and product development capabilities with CP Group’s domestic and international distribution networks, large-scale production/OEM capabilities, and digital marketing assets. In addition, Ci FLAVORS will leverage CTBC’s trusted relationships with leading retail distribution clients across Asia. This collaboration aims to expand sales channels, optimize costs, strengthen brands, accelerate overseas expansion, and further enhance corporate value.

• Comment from Yanagi Capital Partners [Co-Managing Partner Sean Glodek]

Our investment through Yanagi Japan Consumer Fund I LP offers Ci FLAVORS a unique opportunity to expand its growing portfolio of brands by leveraging global networks of production, distribution, sales and government relations of both CP Group and CTBC. We found Ci FLAVORS history of high growth, profitability and continuous innovation to be an inspiration to expand to other markets, especially across Southeast Asia where local consumers put premium value on personal care and beauty products originating from Japan. Our partnership with Ci FLAVORS allows us to dedicate resources to support its international revenue growth strategy (both short and long term), especially in deeper understanding of local consumers, market dynamics, localization requirements and by facilitating potential local partnerships and/or acquisitions.

• Comment from Yoshiaki Okura, Representative Director & CEO of Ci FLAVORS Co., Ltd.

We are truly honored that Yanagi Capital Partners has chosen us as its first investment. By fully leveraging the resources of CP Group, one of Asia’s leading conglomerates, and CTBC, one of Asia’s foremost financial institutions, we will continue to dedicate ourselves to realizing Ci FLAVORS’ vision of becoming one of the world’s leading beauty groups originating from Japan.

• About Yanagi Japan Consumer Fund I LP

Yanagi Japan Consumer Fund I LP is a mid-market consumer private equity fund managed by Yanagi Capital Partners, a collaboration between CP Group and CTBC, established as an affiliated private equity platform with a dedicated team based in Tokyo. Japanese consumer companies and brands, like Ci FLAVORS, have developed a strong consumer affinity across the world for their high quality, craftsmanship, innovation and consistency. Fund’s mission is to support such companies financially and operationally in business expansion outside of Japan, both organically and through M&A. For more information, please see the website www.yanagicapital.com or contact by email at IR@yanagicapital.com.

• About Ci FLAVORS

Ci FLAVORS has defined its purpose as “Illuminate Individuality, Brighten Lives, Shine the World.“To bring the joy of beauty to customers around the globe, Ci FLAVORS develops products that transcend mere functionality, focusing on design that makes daily life better and ideas that spark excitement every time they are used. Through our collection of unique brands, we strive to make the lives of our consumers brighter than the day before. By doing so, we aim to contribute to better lives and society and make the world a more cheerful place to be.

■ Company Overview – Ci FLAVORS Co., Ltd.
Company Name: Ci FLAVORS Co., Ltd.
Representatives: Representative Director & CEO Yoshiaki Okura
Location: Seihou Building, 7th Floor, 3-5-6 Kita-Aoyama, Minato-ku, Tokyo
Established: August 2021
Capital: 10 million yen
Business Description: Overseeing group subsidiaries and executing growth strategies
https://www.Ci FLAVORS.com

• Ci FLAVORS Group Companies

● COSME COMPANY Co., Ltd. https:// cosmecompany.jp
• Stella Seed Inc. | https://stellaseed.jp
• BEAUTE･DE･MODE CO., LTD. | https://beaute-de-mode.jp
• JPSLAB CO., LTD. | https://www.jps-labo.jp
• ViCRÉA, LTD. | https://vicrea.jp
• Bottle Works Inc | https://bottleworks.jp
• Dr.Once Co., Ltd. | https://dr-once.jp/
• MAISON BLOOM Co., Ltd. | https://maison-bloom.jp
• Arcus And Co., Ltd. | https://arcusand.jp
• Ecotone Co., Ltd. | https://www.ectn.jp
● AHRES Inc. | https:/ /ahres.jp
● ANKER CREATE CO., LTD. | https:// ankercreate.com
● She style Co., Ltd. | https://she-style.com
• Bridge Co., Ltd. | https://bridge.tokyo
● dr365 Co., Ltd. | https://dr365.co.jp

[For inquiries about this announcement]
Miyasaka, Corporate Planning Department, Ci FLAVORS Co., Ltd.
Email: pr@ci-flavors.com