Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q3 2021 Earnings Presentation
23 slides from Pola Orbis's earnings presentation, 2021
Slide 1: Third Quarter of Fiscal 2021 Supplementary Material
Third Quarter of Fiscal 2021 Supplementary Material POLA ORBIS HOLDINGS INC. Director Finance, Legal & Administration, PR, IR and CSR Akira Fujii This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reason
Slide 2: Agenda: Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 1
Slide 3: Q3 Key Topics
Q3 Key Topics Cosmetics Market The overall size of the Japanese cosmetics market (including exports) continued to shrink The impact of the rapid, nationwide spread of COVID-19 infections and the persistence of issues such as the state of emergency was evidenced in the Japanese market The impac
Slide 4: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2020 FY2021 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Consolidated net sales 125,814 131,164 5,349 4.3% Cost of sales 20,504 20,582 78 0.4% Gross profit 105,310 110,581 5,271 5.0% SG&A expenses 96,087 98,340 2,2
Slide 5: Consolidated P&L Changes Analysis: Operating Income to Profit Attributable to Owners
Consolidated P&L Changes Analysis Operating Income to Profit Attributable to Owners of Parent FY2020 FY2021 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Operating income 9,222 12,241 3,018 32.7% Non-operating income 269 1,377 1,107 410.4% Non-operating expenses 1,716 186 (1,530)
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent An increase in gross profit, a change in the business structure, and the impact of the exchange rate boosted profit attributable to owners of parent by ¥7,095 million YoY (mil. yen) Positive impact Negative impact 10,000 1,151 8,661 2,590 8,0
Slide 7: Agenda: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 6
Slide 8: Segment Results
Segment Results FY2020 FY2021 YoY Change (mil yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Consolidated net sales 125,814 131,164 5,349 4.3% Beauty care 122,295 127,834 5,539 4.5% Real estate 1,763 1,581 (182) (10.3%) Others 1,755 1,748 (7) (0.4%) Operating income 9,222 12,241 3,018 32.7% Beauty
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2020 FY2021 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Beauty care net sales 122,295 127,834 5,539 4.5% POLA 72,926 77,146 4,220 5.8% ORBIS 33,298 32,522 (776) (2.3%) Jurlique 4,158 5,103 945 22.7% H2O PLUS 500 741 240 48.1% Brands under
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q3 Result (YTD) Topics Domestic storefronts continued to face a difficult business environment due to the persistence of issues such as the state of emergency Opened first duty free stores High growth continued in domestic e-commerce sales, primarily of in Hainan, China WRIN
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q3 Result (YTD) Topics Skincare sales grew through enhanced communication focused Launch a WRINKLE WHITE ESSENCE on high priced skincare and special care limited-edition kit (August) Purchase per customer recovered despite a cumulative decline in revenue due to lower custome
Slide 12: Brand Analysis (3) Overseas Brands
Brand Analysis (3) Overseas Brands Q3 Result (YTD) Topics Progressive amelioration of losses continued in overseas brands Jurlique Jurlique Australia suffered store shutdowns due to lockdowns, Launch a limited-edition kit (August) while e-commerce continued to perform strongly in Mainland Chin
Slide 13: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development Q3 Result (YTD) Topics For THREE, department stores and other offline channels Launched the new ITRIM continued to suffer the effects of the prolonged state of emergency Elementary lineup (September) DECENCIA revenue increased, with a focus on enhanc
Slide 14: Agenda: Forecasts for Fiscal 2021
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 13
Slide 15: Forecasts for Fiscal 2021 (Unchanged)
Forecasts for Fiscal 2021 (Unchanged) The forecast remains unchanged, but the impact of COVID-19 is persisting longer than anticipated and progress is lagging behind the initial plan Make effort to bring results closer to the initial plan with a recovery through measures such as cost rationalization
Slide 16: Agenda: Initiatives Going Forward & Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 15
Slide 17: Initiatives for Fiscal 2021 Q4 onward
Initiatives for Fiscal 2021 Q4 onward Successively release limited-edition kits from the main skincare series to revitalize customers Launch of limited-edition kits from WRINKLE SHOT and B.A (October and November respectively) Release a kit from the POLA top serum B.A GRANDLUXE Ⅲ to improve ex
Slide 18: Initiatives for Fiscal 2021 Q4 onward
Initiatives for Fiscal 2021 Q4 onward Overseas Brands Implement a new brand strategy as a Holistic & Conscious brand Planning to open a new store in Australia embodying the brand concept Launch a Christmas coffret (from October onwards) Image of the new Jurlique store Enhance the efficiency of
Slide 19: About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and 10 different cosmetics brands are operated under the Group umbrella FY2020 Consol. Net Sales ¥176.3 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 High Prestige Price Range ¥10,000 Prestige ¥5
Slide 20: Beauty Care Business Brand Portfolio
(Appendix) Beauty Care Business Brand Portfolio Sales ratio* Brand Concept and products Price Main sales channel High-prestige skincare Approx. JP: Consignment sales, department stores and e-commerce 60% Leading-edge technology in aging- ¥10,000 Overseas: Department stores, directly-operated
Slide 21: Improvement in Capital Efficiency and Shareholder Returns
(Appendix) Improvement in Capital Efficiency and Shareholder Returns Initiatives to Improve Capital Efficiency ROE movement (％) Operating income CAGR 30% 16.0 14.2 Achieve net income growth EPS which is higher than operating Target for 2023 (Earnings per share) income growth by decreasing 12.0 1
Slide 22: 2021 – 2023 Medium-term Management Plan
(Appendix) 2021 – 2023 Medium-term Management Plan Management Indicators for 2023 Consolidated net sales ⇒ ¥215.0 to 225.0 bil. in FY2023 CAGR 7 to 9％ Overseas sales ratio ⇒ 20 to 25% in FY2023 (15% in FY2020) Net Sales CAGR 20 to 25％ Domestic e-commerce sales ratio ⇒ 30% in FY2023 (24% in FY2
Slide 23: Beauty Care Business Results for FY2018 – FY2020 by Brands
(Appendix) Beauty Care Business Results for FY2018 – FY2020 by Brands FY2018 FY2019 FY2020 2019 vs 2020 YoY Change (mil. yen) Results Results Results Amount % Consolidated net sales 248,574 219,920 176,311 (43,609) (19.8%) Beauty care net sales 231,207 214,886 171,658 (43,228) (20.1%) POLA 150,183 1