Unprecedented Offering Seamlessly Connects Corporate Employees with New Wellness Options

New Service Offering Designed to Accelerate B2B Growth

SBC Medical Group Holdings Incorporated (Nasdaq: SBC) (“SBC Medical,” or the “Company”), a global owner, operator and provider of management services and products to cosmetic treatment centers, today announced the launch of SBC Wellness, a wellness solution for corporate clients seeking to enhance their employee benefits programs. The Company believes that HR managers will regard SBC Wellness as an attractive addition to benefit offerings, which may strengthen employee recruitment and retention efforts, ultimately leading to healthier, happier, and more engaged workers. During the pre-launch period of this B2B initiative, SBC Medical successfully contracted with companies, and plans to gradually expand its deployment and forge new partnerships as brand awareness solidifies.

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SBC Medical Launches SBC Wellness, a New Solution to Help Companies Deliver Additional Health Benefits and Enhance Employee Wellbeing (Photo: Business Wire)

Wellness Market Background

As competition in the labor market intensifies and lifestyle choices evolve, companies are finding it increasingly difficult to recruit and retain employees. Employee satisfaction (ES) is essential to recruiting top talent and preventing turnover and can help maintain a company’s competitiveness. According to a Research and Markets report titled “Japan Corporate Wellness Market Forecasts from 2023 to 2028,” the Japan corporate wellness industry is estimated to grow at a CAGR of 8.46% to reach US$7.423 billion in 2028 from US$4.204 billion in 2021. Corporate wellness in Japan is expected to show significant growth owing to the growing employee awareness of their mental and physical health coupled with the favorable efforts undertaken by the Japanese business community to improve employee morale and increase productivity. Also, implementing an employee wellness program can enhance a company's culture and working environment.” Reference: https://www.researchandmarkets.com/reports/5913092

New B2B Business

SBC Wellness will be available to customers beginning on November 18, 2024, and going forward, the Company plans to strengthen its B2B business and considers the offering of SBC Wellness employee benefit solution as a new growth area. In recent years, aesthetic medicine has come to meet the needs of people not only for "beauty" but also as an element that supports "health" and "personal lifestyle.” Therefore, incorporating cosmetic medicine as a part of employee benefit programs is attracting attention as an initiative that supports employee self-care, refreshment and motivation to work, which can also bolster the overall performance and brand image of the organization by inspiring users’ confidence in their work. The Company has designed this B2B growth initiative to meet the corporate goals of improving employee satisfaction and creating a rewarding work environment, and ultimately enhancing competitiveness.

About the SBC Wellness employee benefits solution

The SBC Wellness solution commences with a consultation, via mobile app or a dedicated phone and app, with a VIP concierge to review user concerns and provide information on treatment options and clinic selection. SBC Wellness aims to create a comfortable and accessible environment for a variety of users, including those new to cosmetic medicine. In addition to introducing clinics that match user preferences, SBC Wellness makes appointments on the user’s behalf, and coordinate the user’s schedule, while also checking for competitive pricing based on SBC Medical's available promotions. As part of this offering, SBC Medical plans to offer fertility treatment and egg freezing, supported by Roppongi Women's Clinic in SBC Medical's clinic network. Many of the largest U.S. companies offer a similar benefit. Additional premium services, such as personalized consultations for advanced skincare treatments and hair removal, will be available for corporate executives to enhance their professional presence and boost confidence in business settings.

SBC Medical Group Growth Strategy

SBC Medical believes this new service offering will create a new stage of growth through the strengthening of its B2B business. The Company strives to build a strong presence in a rapidly expanding market by developing employee benefit programs that support corporate human resource strategies. In addition to the Company’s existing franchise business for clinics, the Company intends to further accelerate the growth of the Company by focusing on the B2B business offering as a new long-term growth pillar. The Company has set a five year goal of achieving partnerships with 10% of the approximately 10,000 largest companies in Japan and expanding its current customer base (approximately 4 million) by a multiple of 1.5 times. The Company believes that achievement of these targets will create added value for various stakeholders, while demonstrating that the value SBC Medical provides is sought after not only by individuals but also by corporations. Furthermore, by expanding the Company’s corporate customer base, and attracting new loyal customers through the adoption of SBC's benefits programs among corporate employees, the Company aims to grow its revenue and enhance its profitability. SBC Medical intends to announce further progress and new partnerships as they become available through the official SBC Medical website.

Learn more about SBC Wellness: sbc-alliance@sbc.or.jp

About SBC Medical

SBC Medical, headquartered in Irvine, California and Tokyo, Japan, owns and provides management services and products to cosmetic treatment centers. The Company is primarily focused on providing comprehensive management services to franchisee clinics, including but not limited to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and training), booking reservations for franchisee clinic customers, assistance with franchisee employee housing rentals and facility rentals, construction and design of franchisee clinics, medical equipment and medical consumables procurement (resale), the provision of cosmetic products to franchisee clinics for resale to clinic customers, licensure of the use of patent-pending and non-patented medical technologies, trademark and brand use, IT software solutions (including but not limited to remote medical consultations), management of the franchisee clinic’s customer rewards program (customer loyalty point program), and payment tools for the franchisee clinics.

For more information, visit https://sbc-holdings.com/

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company’s beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company’s control. These forward-looking statements reflect the Company’s current views with respect to, among other things, the Company’s product launch plans and strategies; growth in revenue and earnings; and business prospects. In some cases, forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” “targets” or “hopes” or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management’s current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading “Risk Factors” and elsewhere in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov.

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