Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — H1 2022 Earnings Presentation
30 slides from Pola Orbis's earnings presentation, 2022
Slide 1: First Half of Fiscal 2022 Supplementary Material
First Half of Fiscal 2022 Supplementary Material POLA ORBIS HOLDINGS INC. Representative Director and President Satoshi Suzuki This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual perfor
Slide 2: Accounting standard application note
◼ POLA ORBIS HOLDINGS INC. has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. from fiscal 2022. ◼ Regarding the results for fiscal 2021: The results for fiscal 2021 presented in this presentation have been calculated using the same accounting standa
Slide 3: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2022 4. Initiatives Going Forward & Appendices 2
Slide 4: Q2 Key Topics
Q2 Key Topics Cosmetics Market ◼ The scale of the Japanese cosmetics market (including exports) as a whole continued to recover. ◼ The Japanese market showed a moderate recovery trend after quasi-emergency measures were lifted. ◼ In the overseas market, mainland China suffered restrictions on storef
Slide 5: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2021 FY2022 YoY Change H1 Results (recalculated (mil. yen) under the 2022 standard) H1 Results Amount % Consolidated net sales 86,910 78,748 (8,162) (9.4%) Cost of sales 14,780 14,263 (517) (3.5%) Gross profit 72,129 64,484 (7,645) (1
Slide 6: Consolidated P&L Changes Analysis: Operating Income to Profit
Consolidated P&L Changes Analysis Operating Income to Profit Attributable to Owners of Parent FY2021 FY2022 YoY Change (mil. yen) H1 Results (recalculated H1 Results Amount % under the 2022 standard) Operating income 8,399 4,917 (3,481) (41.5%) Non-operating income 1,487 4,168 2,680 180.2% Non-opera
Slide 7: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent While gross profit decreased due to lower revenue, profit attributable to owners of parent increased by ¥4,304 mil. YoY due to a reduction in income taxes etc. resulting from the impact of exchange rates and the liquidation of H2O PLUS. (mil.
Slide 8: Agenda: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2022 4. Initiatives Going Forward & Appendices 7
Slide 9: Segment Results
Segment Results FY2021 FY2022 YoY Change (mil yen) H1 Results (recalculated H1 Results Amount % under the 2022 standard) Consolidated net sales 86,910 78,748 (8,162) (9.4%) Beauty care 84,683 76,420 (8,262) (9.8%) Real estate 1,053 1,039 (13) (1.3%) Others 1,173 1,287 113 9.7% Operating income 8,399
Slide 10: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2021 FY2022 YoY Change (mil. yen) H1 Results (recalculated H1 Results Amount % under the 2022 standard) Beauty care net sales 84,683 76,420 (8,262) (9.8%) POLA 53,067 45,056 (8,011) (15.1%) ORBIS 19,809 19,060 (748) (3.8%) Jurlique 3,474 3,655 181 5.2% H2O PL
Slide 11: Brand Analysis (1)
Brand Analysis (1) H1 Result Topics ◼ Sales of the high price range B.A series grew, despite a decline in domestic ◼ Accelerated global expansion revenue. with new store openings in ◼ Overseas revenue fell significantly, with restrictions on storefront operations Australia and Vietnam and logistics
Slide 12: Brand Analysis (1): POLA Consignment Net Sales Changes
Brand Analysis (1) Analysis of Changes in POLA Consignment Net Sales Net sales Main KPIs Purchase per customer # of customers Down 13.9% YoY Up 16.2% YoY Down 25.1% YoY ✓ Purchase per existing customer rose, maintaining a customer base with high LTV. ✓ Contribution from high price range skincare inc
Slide 13: Brand Analysis (2)
Brand Analysis (2) H1 Result Topics ◼ Mail-order purchase per customer rose YoY, but revenue ◼ Launched limited-edition for special type of declined due to a decrease in the number of customers. ORBIS OIL CUT CLEANSING LIQUID, a ◼ In terms of product, demand for makeup is experiencing a staple produ
Slide 14: Brand Analysis (3) Overseas Brands
Brand Analysis (3) Overseas Brands H1 Result Topics ◼ Jurlique continued to struggle in Australia and Hong Kong, ◼ Jurlique launched a limited-edition mist (June). and suffered from store shutdowns and shortened opening hours due to lockdowns in mainland China, but revenue increased and losses were
Slide 15: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development H1 Result Topics ◼ THREE revenue decreased, impacted by the temporary ◼ Received best suppression of online promotions after the reopening of cosmetics awards. in-house e-commerce. ◼ Revenue decreased for DECENCIA due to restrained investment in preparatio
Slide 16: Agenda: Forecasts for Fiscal 2022
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2022 4. Initiatives Going Forward & Appendices 15
Slide 17: Forecasts for Fiscal 2022 (Revised)
Forecasts for Fiscal 2022 (Revised) The Company has revised its forecasts downwards, mainly for POLA, but aims for an increase in revenue in the second half of the fiscal year. YoY Change YoY Change FY2022 FY2022 Vs Apr. 28 (same-standard basis) (same-standard basis) H1 Results Full-year Plan Plan (
Slide 18: Forecasts for Fiscal 2022 (Revised)
Forecasts for Fiscal 2022 (Revised) YoY Change YoY Change FY2022 FY2022 Vs Apr. 28 (same-standard basis) (same-standard basis) H1 Results Full-year Plan Plan (mil. yen) Amount % Amount % Consolidated net sales 78,748 (8,162) (9.4%) 170,000 (16,000) (4,896) (2.8%) Operating income 4,917 (3,481) (41.5
Slide 19: Agenda: Initiatives Going Forward
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2022 4. Initiatives Going Forward & Appendices 18
Slide 20: Initiatives for 2022 Q3 onward
Initiatives for 2022 Q3 onward ◼ For consignment sales, aim for the nationwide expansion of stores utilizing social media and other digital media, which have proved effective for new customer acquisition, and accelerate expansion of customer base into new demographics linked directly through online
Slide 21: Initiatives for 2022 Q3 onward
Initiatives for 2022 Q3 onward ◼ Renew the ORBIS U skincare series, the symbol of ORBIS (August) ➢ Use the launch of core products as a hook to strengthen promotional investment, with a sales target for renewed products of 2.5 bil. yen (+25% YoY) in the first fiscal year.* ➢ Enhance the functionalit
Slide 22: Initiatives for 2022 Q3 onward
Initiatives for 2022 Q3 onward Overseas Brands ◼ In mainland China, invest to capture the strong performance in e-commerce and strengthen skincare customer acquisition. ◼ Leverage the Group’s expertise in R&D to launch a cosmetic oil that uses advanced moisturizing capacity to address skin damage du
Slide 23: (Appendix) Quarterly Segment Results
(Appendix) Quarterly Segment Results ◼ Net sales FY2022 Jan.-Mar. FY2022 Apr.-Jun. FY2022 Jul.-Sep. FY2022 Oct.-Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Consolidated net sales 37,662 (11.9%) 41,085 (6.9%) - - - - Beauty care 36,516 (12.3%) 39,903 (7
Slide 24: (Appendix) Quarterly Results by Brands
(Appendix) Quarterly Results by Brands ◼ Net sales FY2022 Jan.-Mar. FY2022 Apr.-Jun. FY2022 Jul.-Sep. FY2022 Oct.-Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Beauty care net sales 36,516 (12.3%) 39,903 (7.3%) - - - - POLA 21,229 (20.0%) 23,826 (10.2%)
Slide 25: (Appendix) About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and nine different cosmetics brands are operated under the Group umbrella. FY2021 Consol. Net Sales ¥178.6 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 ◼ 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 27: (Appendix) 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 25% ◼ Achieve net income growth 16.0 14.2 Target for 2023 EPS which is higher than operating ROE 9% (Earnings per share) income growth by decreasing
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) 2021 – 2023 Medium-term Management Plan
(Appendix) 2021 – 2023 Medium-term Management Plan Management Indicators for 2023 ◼ Consolidated net sales ⇒ ¥205.0 to 215.0 bil. in FY2023 CAGR 6％ or higher ◼ Overseas sales ratio ⇒ 20 to 25% in FY2023 (15% in FY2020) Net Sales CAGR 20 to 25％ ◼ Domestic e-commerce ⇒ 30% in FY2023 (24% in FY2020) sa
Slide 30: (Appendix) Beauty Care Business Results for FY2019 – FY2021 by Brands
(Appendix) Beauty Care Business Results for FY2019 – FY2021 by Brands FY2019 FY2020 FY2021 FY2021 Results (mil. yen) Results Results Results (recalculated under the 2022 standard) Consolidated net sales 219,920 176,311 178,642 174,896 Beauty care net sales 214,886 171,658 174,150 170,403 POLA 135,50