Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q3 2023 Earnings Presentation
26 slides from Pola Orbis's earnings presentation, 2023
Slide 1: Third Quarter of Fiscal 2023 Supplementary Material
Third Quarter of Fiscal 2023 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: Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2023 4. Initiatives Going Forward & Appendices 1
Slide 3: Q3 Key Topics
Q3 Key Topics Cosmetics Market ◼ The scale of the Japanese cosmetics market (including exports) was strong. ◼ In terms of domestic demand, economic activity progressed toward normalization and the recovery from the COVID-19 pandemic continued also in the cosmetics market. ◼ The recovery in inbound d
Slide 4: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2022 FY2023 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Consolidated net sales 119,654 126,739 7,084 5.9% Cost of sales 21,795 22,799 1,004 4.6% Gross profit 97,859 103,939 6,080 6.2% SG&A expenses 90,190 92,026 1
Slide 5: Consolidated P&L Changes Analysis: Operating Income to Profit Attributable to Owners of Parent
Consolidated P&L Changes Analysis Operating Income to Profit Attributable to Owners of Parent FY2022 FY2023 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Operating income 7,668 11,913 4,244 55.4% Non-operating income 4,903 3,159 (1,744) (35.6%) Non-operating expenses 403 242 (160)
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent Despite an increase in gross profit due to higher revenue, profit attributable to owners of parent declined by ¥3,750 mil. YoY due to a decrease in foreign exchange gain and the rebound of the reduction in income taxes, etc. in the same perio
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2023 4. Initiatives Going Forward & Appendices 6
Slide 8: Segment Results
Segment Results FY2022 FY2023 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Consolidated net sales 119,654 126,739 7,084 5.9% Beauty care 116,231 123,260 7,029 6.0% Real estate 1,561 1,557 (3) (0.2%) Others 1,861 1,920 59 3.2% Operating income 7,668 11,913 4,244 55.4% Beauty care
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2022 FY2023 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Beauty care net sales 116,231 123,260 7,029 6.0% POLA 69,462 72,860 3,397 4.9% ORBIS 28,109 31,227 3,117 11.1% Jurlique 5,387 5,880 493 9.2% Brands under development 12,040 12,601 56
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q3 Result (YTD) Topics ◼ Revenue continued to grow substantially in the department store, ◼ Opened the second domestic store e-commerce, and amenities business. New customer acquisition in a department store in South Korea, progressed and the number of new customers in Japan incre
Slide 11: Analysis of Changes in POLA's Domestic Net Sales
Brand Analysis (1) Analysis of Changes in POLA’s Domestic Net Sales Breakdown of Changes in Net Sales in the Domestic Business YoY Change in Domestic Net Sales by Channels Department B2B(1) ✓ Revenue in the domestic business increased by 3.8% as the 610 Consignment sales stores +30% +3.8% decline in
Slide 12: Brand Analysis (2)
Brand Analysis (2) Q3 Result (YTD) Topics ◼ New customer acquisition further accelerated thanks to the ◼ Renewed ORBIS’s premium aging-care contribution of ORBIS U., with double-digit growth in the series (August) number of new customers for direct selling channel. ◼ External channels continued to p
Slide 13: Brand Analysis (3)
Brand Analysis (3) Q3 Result (YTD) Topics ◼ Revenue grew by 9% with the success of the storefront ◼ Launched a limited-edition large size of the popular approach to customers in Australia, as well as growth in face oil (August) mainland China and Hong Kong. ◼ Conducted promotions focusing on face oi
Slide 14: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development Q3 Result (YTD) Topics ◼ Losses from brands under development were ameliorated. ◼ Launched THREE autumn collection (August) ◼ THREE aimed to revitalize storefronts with its main series BALANCING and new makeup collection. Domestic revenue increased. ◼ DECE
Slide 15: Forecasts for Fiscal 2023
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2023 4. Initiatives Going Forward & Appendices 14
Slide 16: Forecasts for Fiscal 2023 (Unchanged)
Forecasts for Fiscal 2023 (Unchanged) FY2023 YoY Change FY2023 YoY Change (mil. yen) Q3 Results (YTD) Amount % Full-year plan Amount % Consol. net sales 126,739 7,084 5.9% 180,000 13,692 8.2% Beauty care 123,260 7,029 6.0% 175,500 13,845 8.6% Real estate 1,557 (3) (0.2%) 2,000 (83) (4.0%) Others 1,9
Slide 17: Initiatives Going Forward & Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2023 4. Initiatives Going Forward & Appendices 16
Slide 18: Initiatives for FY2023 Q4 Onward
Initiatives for FY2023 Q4 Onward Domestic Business ◼ Strengthen online advertising for aesthetic treatment to acquire new customers and expand campaigns enabling customers to experience products capturing seasonal demand to direct customers to stores. ◼ Use lists of existing customers to promote pur
Slide 19: Initiatives for FY2023 Q4 Onward
Initiatives for FY2023 Q4 Onward ◼ Launch holiday kits for the year-end sales, aiming to achieve a profit in the fourth quarter (October to December). ◼ Continue the cost structure reforms to eliminate losses and ensure more efficient expense execution. ADVENT CALENDAR 2023 Brands Under Development
Slide 20: (Appendix) Quarterly Segment Results
(Appendix) Quarterly Segment Results ◼ Net sales FY2023 Jan.-Mar. FY2023 Apr.-Jun. FY2023 Jul.-Sep. FY2023 Oct.-Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Consolidated net sales 42,136 11.9% 43,700 6.4% 40,902 (0.0%) - - Beauty care 40,950 12.1% 42,57
Slide 21: (Appendix) Quarterly Results by Brands
(Appendix) Quarterly Results by Brands ◼ Net sales FY2023 Jan.-Mar. FY2023 Apr.-Jun. FY2023 Jul.-Sep. FY2023 Oct.-Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Beauty care net sales 40,950 12.1% 42,578 6.7% 39,731 (0.2%) - - POLA 24,183 13.9% 25,579 7.4%
Slide 22: (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. FY2022 Consol. Net Sales ¥166.3 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 * * High Prestige Price Range ¥10,000 Pres
Slide 23: (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 24: (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% (％) or higher Mid-term 16.0 14.2 ◼ Achieve net income growth Management Plan EPS which is higher than operating Indicator for 2023 (Earnings per sha
Slide 25: (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 26: (Appendix) Beauty Care Business Results for FY2021 – FY2022 by Brands
(Appendix) Beauty Care Business Results for FY2021 – FY2022 by Brands FY2021 - FY2022 FY2021 FY2021 FY2022 YoY Change Results (mil. yen) Results (recalculated under the Results Amount % 2022 standard) Consolidated net sales 178,642 174,896 166,307 (8,588) (4.9%) Beauty care net sales 174,150 170,403