Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q3 2018 Earnings Presentation
23 slides from Pola Orbis's earnings presentation, 2018
Slide 1: Third Quarter of Fiscal 2018 Supplementary Material
Third Quarter of Fiscal 2018 Supplementary Material POLA ORBIS HOLDINGS INC. Director and Vice President Management Planning, IT, HR and Group International Business Naoki Kume This report contains projections of performance and other projections based on information currently available and certain
Slide 2: Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2018 4. Initiatives Going Forward & Appendices 1
Slide 3: Q3 Key Topics
Q3 Key Topics Cosmetics Market The Japanese cosmetics market overall showed steady growth, although growth rate is moderating. For the domestic market excluding inbound, a slight decline trend seemed to continue. As for the inbound market in Japan, the market size continued to grow. However, t
Slide 4: Analysis of Consolidated P&L Changes: Net Sales to Operating Income
Analysis of Consolidated P&L Changes Net Sales to Operating Income FY2017 FY2018 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Consolidated net sales 177,846 184,807 6,961 3.9% Cost of sales 29,415 29,948 532 1.8% Gross profit 148,430 154,859 6,428 4.3% SG&A* expenses 117,883 122,
Slide 5: Analysis of Consolidated P&L Changes: Operating Income to Net Profit
Analysis of Consolidated P&L Changes Operating Income to Profit Attributable to Owners of Parent FY2017 FY2018 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Operating income 30,546 32,335 1,789 5.9% Non-operating income 332 383 50 15.2% Non-operating expenses 88 529 441 500.3% Ord
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent Profit attributable to owners of parent was up 6.6% yoy due to increase in gross profit and COGS improvement Positive impact Negative impact (mil. yen) Increase in sales of the POLA brand 30,000 28,000 618 26,000 646 2,427 103 24,000 5,809 1,
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2018 4. Initiatives Going Forward & Appendices 6
Slide 8: Segment Results
Segment Results FY2017 FY2018 YoY Change (mil yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Consolidated net sales 177,846 184,807 6,961 3.9% Beauty care 165,268 172,024 6,755 4.1% Real estate 2,020 2,031 11 0.6% Others 10,557 10,752 194 1.8% Operating income 30,546 32,335 1,789 5.9% Beauty care 2
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2017 FY2018 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Beauty care net sales 165,268 172,024 6,755 4.1% POLA 104,902 112,350 7,448 7.1% ORBIS 39,888 38,056 (1,832) (4.6%) Jurlique 8,201 7,453 (748) (9.1%) H2O PLUS 1,765 1,416 (348) (19.7
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q3 Result Topics Sales to existing customers continued to grow Launched “Red B.A”, which highly steadily in Japan. contributed to customer acquisition Overseas sales grew especially in the Chinese, (September) Hong Kong, and duty-free markets (by 2 times). “Wrinkle Shot” w
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q3 Result Topics Concentrated marketing resources on “ORBIS U”, Obtained the 1st place for four with a view to getting back to the sales growth consecutive years under mail-order trajectory after the new product launch in 4Q. business “own-brand category” Some customers rest
Slide 12: Brand Analysis (3)
Brand Analysis (3) Q3 Result Topics Sales declined by 6% yoy (on an AUD basis). Launched aging care series New products contributed to customer acquisition; that symbolize the brand however, it takes some time for the brand to (September) realize sales growth. Herbal Recovery Range Q3 (YTD) Re
Slide 13: Brand Analysis (4)
Brand Analysis (4) Q3 Result Topics Sales were down due to withdrawal from some of Implemented measures such as sampling the sales channels at the end of last year. campaign and product training for external sales Implemented marketing strategies focused on associates in order to revitalize st
Slide 14: Brand Analysis (5) Brands Under Development
Brand Analysis (5) Brands Under Development Q3 Result Topics At THREE, sales grew in skincare product category, which Launched new brands at stores and online customers tend to make repeat purchases. The brand successfully expanded into international markets such as duty-free and cross-border e-
Slide 15: Forecasts for Fiscal 2018
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2018 4. Initiatives Going Forward & Appendices 14
Slide 16: Forecasts for FY2018 (No Change)
Forecasts for FY2018 (No Change) The full-year performance forecast remains as originally planned. The Group is expecting increases both in sales and OP income for the ninth consecutive year. 2018 YoY Change 2018 Full-year YoY Change (mil. yen) Q3 Results (YTD) Amount % Forecast Amount % Consol. net
Slide 17: Initiatives Going Forward & Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2018 4. Initiatives Going Forward & Appendices 16
Slide 18: Initiatives for 2018 Q4
Initiatives for 2018 Q4 ■ Sustain stable growth of flagship brands to lead Group earnings Launch two special skincare products from “B.A”, the most prestigious series of the brand. (October) Introduce limited special sets from “B.A” and “Wrinkle Shot”. (November) Accelerate overseas store expa
Slide 19: About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and 9 different cosmetics brands are operated under the Group umbrella FY2017 Consol. Net Sales ¥244.3 bil. Overseas Flagship Brands under Launched in Brands Brands development September 2018 ¥20,000 High Prestige Price
Slide 20: Beauty Care Business Brand Portfolio
(Appendix) Beauty Care Business Brand Portfolio Sales Brand Concept and products Price Sales channel ratio* High-prestige skincare Consignment sales through Approx. Leading-edge technology in Beauty Directors, department store 63% anti-aging and skin-whitening ¥10,000 counters and online Flags
Slide 21: Long-term Vision
(Appendix) Long-term Vision STAGE3 Become a highly profitable global enterprise Consolidated net sales STAGE2 Goals for FY2020: •Consol. net sales: ¥250.0 bil. or higher (bil. yen) Further strengthen domestic •Overseas sales ratio: 20% STAGE1 earnings structure and •Operating margin: 13-15% accelera
Slide 22: 2017 – 2020 Medium-term Management Plan
(Appendix) 2017 – 2020 Medium-term Management Plan The final stage of the long-term vision for 2020. Aim to improve profitability in Japan, promote a solid shift toward overall profitability from overseas operations and build a brand structure for next-generation growth. Consolidated net sales Capit
Slide 23: Beauty Care Business Results for FY2015 – FY2017 by Brands
(Appendix) Beauty Care Business Results for FY2015 – FY2017 by Brands FY2015 FY2016 FY2017 2016 vs 2017 YoY Change (mil. yen) Results Results Results Amount % Consolidated net sales 214,788 218,482 244,335 25,853 11.8% Beauty care net sales 200,570 202,446 227,133 24,686 12.2% POLA 109,352 116,126 1