Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — H1 2024 Earnings Presentation
29 slides from Pola Orbis's earnings presentation, 2024
Slide 1: First Half of Fiscal 2024 Supplementary Material
First Half of Fiscal 2024 Supplementary Material POLA ORBIS HOLDINGS INC. Representative Director and President Yoshikazu Yokote • This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual pe
Slide 2: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 1
Slide 3: Q2 Key Topics
Q2 Key Topics Cosmetics Market ◼ The scale of the Japanese cosmetics market as a whole continued to show steady growth. ◼ A difficult business environment persisted for the cosmetics market in mainland China amid uncertain economic conditions. Source: Ministry of Economy, Trade and Industry, Ministr
Slide 4: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2023 FY2024 YoY Change (mil. yen) H1 Results H1 Results Amount % Consolidated net sales 85,836 83,836 (2,000) (2.3%) Cost of sales 15,177 15,057 (119) (0.8%) Gross profit 70,659 68,778 (1,880) (2.7%) SG&A expenses 61,692 61,461 (230)
Slide 5: Consolidated P&L Changes Analysis: Operating Income to Interim Profit
Consolidated P&L Changes Analysis Operating Income to Interim Profit Attributable to Owners of Parent FY2023 FY2024 YoY Change (mil. yen) H1 Results H1 Results Amount % Operating income 8,966 7,316 (1,649) (18.4%) Non-operating income 2,560 3,979 1,418 55.4% Non-operating expenses 137 174 37 27.4% O
Slide 6: Factors Impacting Interim Profit Attributable to Owners of Parent
Factors Impacting Interim Profit Attributable to Owners of Parent Despite a decrease in gross profit due to lower revenue, interim profit attributable to owners of parent increased by ¥95 mil. YoY due to the impact of foreign exchange rates. Positive impact Negative impact (mil. yen) 7,404 7,500 444
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 6
Slide 8: Segment Results
Segment Results FY2023 FY2024 YoY Change (mil. yen) H1 Results H1 Results Amount % Consolidated net sales 85,836 83,836 (2,000) (2.3%) Beauty care 83,529 81,322 (2,207) (2.6%) Real estate 1,036 995 (40) (3.9%) Others 1,270 1,518 247 19.5% Operating income 8,966 7,316 (1,649) (18.4%) Beauty care 8,71
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2023 FY2024 YoY Change (mil. yen) H1 Results H1 Results Amount % Beauty care net sales 83,529 81,322 (2,207) (2.6%) POLA 49,763 45,966 (3,796) (7.6%) ORBIS 20,902 23,992 3,090 14.8% Jurlique 3,838 4,100 261 6.8% Brands under development 8,350 7,262 (1,087) (1
Slide 10: Brand Analysis (1)
Brand Analysis (1) H1 Result Topics ◼ New customer acquisitions were on an improving trend in the consignment sales channel. ◼ Our new products performed strongly, ◼ Maintained double-digit revenue growth in department stores by receiving multiple best cosmetics awards. strengthening beauty counseli
Slide 11: Brand Analysis (2)
Brand Analysis (2) H1 Result Topics ◼ Customer numbers increased for both new and existing ◼ Launch of a limited-edition large size from customers in the direct selling channel, and both revenue and the popular UV product (April); revenue income continued to grow. growth of over 40% YoY. ◼ The highl
Slide 12: Brand Analysis (3)
Brand Analysis (3) H1 Result Topics ◼ Despite a struggle in mainland China and Hong Kong, we ◼ Domestic launch of the HERBAL focused on customer acquisition centered on new products in RECOVERY series, condensing the Australia, leading to growth. blessings of herbs and flowers (June). ◼ An increase
Slide 13: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development H1 Result Topics ◼ THREE promoted the acquisition of repeat customers through a ◼ Launched a new cleansing balm holistic approach centered on products such as the BALANCING from THREE’s BALANCING series. series (May). ◼ DECENCIA strengthened its cross-sell
Slide 14: Initiatives Going Forward
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 13
Slide 15: Initiatives for FY2024 Q3 Onward
Initiatives for FY2024 Q3 Onward Domestic Business (Reference) POLA YoY Change in Domestic Monthly Net Sales ◼ Launch the new APEX and renew the skin analysis system (July). 10.0% 5.0% • Acquire new customers and encourage existing customers to visit 0.0% 0% stores through the introduction of new sk
Slide 16: Initiatives for FY2024 Q3 Onward
Initiatives for FY2024 Q3 Onward Domestic Business ◼ Expand the top line by continuing to introduce new products focused on high value-added type. • Launch the first liquid foundation in the ORBIS U series (September) and aim to boost lifetime value (LTV) by cross-selling the ORBIS U skincare series
Slide 17: Initiatives for FY2024 Q3 Onward
Initiatives for FY2024 Q3 Onward ◼ Appeal to customers with essential oils to develop sales promotions with an added experiential element. • Establish the open laboratory AROMARIUM THREE, featuring a lineup of made-in-Japan essential oils, at the THREE HIBIYA concept shop (July). AROMARIUM THREE ◼ M
Slide 18: Forecasts for Fiscal 2024
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 17
Slide 19: Forecasts for Fiscal 2024 (Revised)
Forecasts for Fiscal 2024 (Revised) Forecasts have been revised downward for POLA but upward for ORBIS. We aim for an increase in consolidated revenue and income in the second half of the fiscal year. FY2024 YoY Change FY2024 Vs. Initial YoY Change (mil. yen) H1 Results Amount % Full-year plan Plan
Slide 20: Forecasts for Fiscal 2024 (Revised)
Forecasts for Fiscal 2024 (Revised) FY2024 YoY Change FY2024 Vs. Initial YoY Change (mil. yen) H1 Results Amount % Full-year plan Plan Amount % Consolidated net sales 83,836 (2,000) (2.3%) 173,500 (5,500) 195 0.1% Operating income 7,316 (1,649) (18.4%) 14,500 (3,400) (1,580) (9.8%) Ordinary income 1
Slide 21: Appendices
KKK POLA ORBIS eae HOLDINGS Appendices 20
Slide 22: (Appendix) Quarterly Segment Results
(Appendix) Quarterly Segment Results ◼ Net sales FY2024 Jan.–Mar. FY2024 Apr.–Jun. FY2024 Jul.–Sep. FY2024 Oct.–Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Consolidated net sales 40,886 (3.0%) 42,949 (1.7%) - - - - Beauty care 39,552 (3.4%) 41,770 (1.9
Slide 23: (Appendix) Quarterly Beauty Care Business Results by Brands
(Appendix) Quarterly Beauty Care Business Results by Brands ◼ Net sales FY2024 Jan.–Mar. FY2024 Apr.–Jun. FY2024 Jul.–Sep. FY2024 Oct.–Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Beauty care net sales 39,552 (3.4%) 41,770 (1.9%) - - - - POLA 22,161 (8.
Slide 24: (Appendix) Beauty Care Business Results for FY2021–FY2023 by Brands
(Appendix) Beauty Care Business Results for FY2021–FY2023 by Brands FY2022–FY2023 FY2021 FY2022 FY2023 YoY Change Results (mil. yen) (recalculated under the Results Results Amount % 2022 standard) Consolidated net sales 174,896 166,307 173,304 6,996 4.2% Beauty care net sales 170,403 161,654 168,477
Slide 25: (Appendix) About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and six different cosmetics brands are operated under the Group umbrella. FY2023 Consol. Net Sales ¥173.3 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 High Prestige Price Range ¥10,000 Prestige
Slide 26: (Appendix) Beauty Care Business Brand Portfolio
(Appendix) Beauty Care Business Brand Portfolio Sales ratio* Brand Concept and products Price Main sales channel ◼ Japan: Consignment sales, department stores, e-commerce and ◼ High-prestige skincare Approx. retail stores 59% ◼ Leading-edge technology in aging- ¥10,000 ◼ Overseas: Department stores,
Slide 27: (Appendix) Improvement in Capital Efficiency and Shareholder Returns
(Appendix) Improvement in Capital Efficiency and Shareholder Returns 【Enhancing Capital Profitability】 Return on equity (ROE) has been declining due to the decrease in profit. Under the new Medium-term Management Plan, we aim to achieve ROE of at least 10% by 2026 through capital profitability enhan
Slide 28: (Appendix) Long-term Management Plan – VISION 2029
(Appendix) Long-term Management Plan – VISION 2029 VISION 2029 A collection of unique businesses that respond to diversifying values of “beauty” Basic strategy 1 Develop the cosmetics business globally; reform and enhance the brand portfolio Basic strategy 2 Create new value and expand business doma
Slide 29: (Appendix) 2024–2026 Medium-term Management Plan
(Appendix) 2024–2026 Medium-term Management Plan Management Indicators for 2026 Domestic Net Sales CAGR approx. 4% Consolidated ¥200.0 bil. Overseas Net Sales CAGR approx.12% Net Sales CAGR approx. 5% Overseas Sales Ratio 20% Consolidated Operating Income Operating margin 12-13% Consolidated payout