Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q1 2022 Earnings Presentation
25 slides from Pola Orbis's earnings presentation, 2022
Slide 1: First Quarter of Fiscal 2022 Supplementary Material
First Quarter of Fiscal 2022 Supplementary Material POLA ORBIS HOLDINGS INC. Corporate Officer PR, IR, CSR and Sustainability Naotaka Hashi This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable.
Slide 2: Application of Revenue Recognition Accounting Standard
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: Q1 Key Topics
Q1 Key Topics Cosmetics Market The scale of the Japanese cosmetics market (including exports) as a whole recovered during the first half of the first quarter, but a slowdown emerged from February onward. The Japanese market was at a similar level to the previous year, due to the rapid spread of
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 Q1 Results (recalculated under (mil. yen) the 2022 standard) Q1 Results Amount % Consolidated net sales 42,773 37,662 (5,111) (11.9%) Cost of sales 7,065 6,816 (248) (3.5%) Gross profit 35,708 30,845 (4,862) (13
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) Q1 Results (recalculated Q1 Results Amount % under the 2022 standard) Operating income 4,094 1,912 (2,182) (53.3%) Non-operating income 1,518 2,314 796 52.5% Non-operatin
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 ¥3,390 mil. YoY due to a reduction in income taxes etc. resulting from the liquidation of H2O PLUS. (mil. yen) Positive impact Negative im
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) Q1 Results (recalculated Q1 Results Amount % under the 2022 standard) Consolidated net sales 42,773 37,662 (5,111) (11.9%) Beauty care 41,658 36,516 (5,141) (12.3%) Real estate 530 523 (7) (1.4%) Others 585 622 37 6.3% Operating income 4,094 1,912 (
Slide 10: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2021 FY2022 YoY Change (mil. yen) Q1 Results (recalculated Q1 Results Amount % under the 2022 standard) Beauty care net sales 41,658 36,516 (5,141) (12.3%) POLA 26,545 21,229 (5,315) (20.0%) ORBIS 9,406 9,340 (65) (0.7%) Jurlique 1,696 1,925 228 13.5% H2O PLU
Slide 11: Brand Analysis (1)
Brand Analysis (1) Q1 Result Topics Consignment sales struggled, partly due to a decline in customer traffic and restrictions Launched a new brightening serum and beauty on storefront business activities. health foods from the White Shot series (January). Domestic e-commerce focused on high-fu
Slide 12: Brand Analysis (2)
Brand Analysis (2) Q1 Result Topics Domestic e-commerce revenue increased, with growth in ORBIS U. Launched a new series of brightening skincare, and special care, and income increased due to efficient marketing met with a positive initial reception (February). investment. Suffered the suspens
Slide 13: Brand Analysis (3) Overseas Brands
Brand Analysis (3) Overseas Brands Q1 Result Topics Jurlique continued to perform strongly in Mainland China; revenue Jurlique launched a limited-edition mist (March). increased and losses were ameliorated as planned. The dissolution and liquidation of H2O PLUS were decided effective April 28.
Slide 14: Dissolution and Liquidation of the H2O PLUS Brand
Dissolution and Liquidation of the H2O PLUS Brand The dissolution and liquidation of H2O PLUS were decided effective April 28. Reason for the dissolution The Company acquired H2O PLUS in 2011 to manufacture and sell cosmetics, primarily in the United States. H2O PLUS’s performance has fallen sho
Slide 15: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development Q1 Result Topics THREE revenue decreased due to the impact of the continued suspension of Renewal of THREE skincare series in-house e-commence, despite making progress in the shift to e-commerce (February) with new expansion into external e-commerce pl
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) Only profit has been revised upwards to reflect the impact of the dissolution and liquidation of H2O PLUS. FY2022 FY2022 Variance from YoY Change （same-standard basis) (mil. yen) Initial Plan Revised Plan Initial Plan Amount % Consol. net sales 186,000 186,000 - 1
Slide 18: Agenda: Initiatives Going Forward & Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2022 4. Initiatives Going Forward & Appendices 17
Slide 19: Initiatives for FY2022 Q2 Onward
Initiatives for FY2022 Q2 Onward Launch skin lotion from the B.A series (April), with a sensory promotion online. Expand the main skincare series to acquire new customers and encourage existing customers to visit stores. Promote repeat purchases through the transition to existing basic items.
Slide 20: Initiatives for FY2022 Q2 Onward: Overseas and Developing Brands
Initiatives for FY2022 Q2 Onward Overseas Brands Implement the new brand strategy across all customer contact points: products, storefronts, and digital, to firmly establish Jurlique’s position as a Holistic & Conscious beauty brand. Pivot on hero products in face care to acquire customers in Ma
Slide 21: 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. FY2021 Consol. Net Sales ¥178.6 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 High Prestige Price Range ¥10,000 Prestige ¥
Slide 22: 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 23: 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 24: 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 sales ratio ⇒ 30% in FY2023 (24% i
Slide 25: 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