Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q1 2021 Earnings Presentation
24 slides from Pola Orbis's earnings presentation, 2021
Slide 1: First Quarter of Fiscal 2021 Supplementary Material
First Quarter of Fiscal 2021 Supplementary Material POLA ORBIS HOLDINGS INC. Director Finance, Legal & Administration, PR, IR and CSR Akira Fujii This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reason
Slide 2: Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 1
Slide 3: Q1 Key Topics
Q1 Key Topics Cosmetics Market The overall size of the Japanese cosmetics market (including exports) continued to shrink due to the impact of COVID-19 Inbound demand was sluggish due to Japanese border entry restrictions The outlook for the net domestic market remains unclear, with the declara
Slide 4: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2020 FY2021 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Consolidated net sales 43,316 43,561 245 0.6% Cost of sales 7,106 6,399 (706) (9.9%) Gross profit 36,210 37,162 951 2.6% SG&A expenses 34,204 32,854 (1,349) (3.9%) Opera
Slide 5: Consolidated P&L Changes Analysis: Operating Income to Profit
Consolidated P&L Changes Analysis Operating Income to Profit Attributable to Owners of Parent FY2020 FY2021 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Operating income 2,006 4,307 2,301 114.7% Non-operating income 88 1,518 1,429 - Non-operating expenses 2,248 62 (2,186) (97.2%) Ordinary in
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent An increase in gross profit, a change in the business structure, and the impact of the exchange rate boosted profit attributable to owners of parent by ¥5,186 million YoY (mil. yen) Positive impact Negative impact 6,000 5,000 533 1,263 4,000
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 6
Slide 8: Segment Results
Segment Results FY2020 FY2021 YoY Change (mil yen) Q1 Results Q1 Results Amount % Consolidated net sales 43,316 43,561 245 0.6% Beauty care 42,082 42,445 363 0.9% Real estate 636 530 (106) (16.7%) Others 597 585 (11) (2.0%) Operating income 2,006 4,307 2,301 114.7% Beauty care 1,700 4,190 2,490 146.
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2020 FY2021 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Beauty care net sales 42,082 42,445 363 0.9% POLA 25,057 26,330 1,273 5.1% ORBIS 11,304 10,450 (854) (7.6%) Jurlique 1,297 1,672 374 28.9% H2O PLUS 284 167 (116) (41.1%) Brands under development
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q1 Result Topics Purchase per customer for consignment sales recovered to the same level as in Renewal of POLA WRINKLE SHOT the same period of the previous year, as a result of new product offerings, but revenue declined due to a decrease in customer numbers SERUM (January)
Slide 11: Topics
Topics Structural reform of sales channels is progressing, with overseas operations and domestic e-commerce driving POLA’s revenue growth Domestic e-commerce 【Sales Ratio by Sales Channel】 Strengthened sales promotion capitalizing on new products, achieving Domestic a YoY increase in revenue of +115
Slide 12: Brand Analysis (2)
Brand Analysis (2) Q1 Result Topics New mail-order (e-commerce and catalog) customer acquisition Launched new brightening serum, continued strongly at +38% YoY, but revenue declined due to the WHITE CLEAR ESSENCE impact of a decrease in existing customers (February) Focused on thorough communi
Slide 13: Brand Analysis (3) Overseas Brands
Brand Analysis (3) Overseas Brands Q1 Result Topics Jurlique revenue increased and losses were improved, with growth in Jurlique China, particularly in online sales, despite some store shutdowns due Renewal of major skincare products (March) to lockdowns in Australia H2O PLUS revenue fell sign
Slide 14: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development Q1 Result Topics THREE domestic e-commerce grew (+56% YoY) DECENCIA Revenue from department stores and other offline channels Launched wrinkle-improving face mask decreased, compared to the high level achieved in the previous year (March) DECENCIA re
Slide 15: Forecasts for Fiscal 2021
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 14
Slide 16: Forecasts for Fiscal 2021 (Unchanged)
Forecasts for Fiscal 2021 (Unchanged) FY2020 YoY Change FY2021 YoY Change (mil. yen) Full-year Results Amount % Full-year Plan Amount % Consol. net sales 176,311 (43,609) (19.8%) 190,000 13,688 7.8% Beauty care 171,658 (43,228) (20.1%) 185,900 14,241 8.3% Real estate 2,291 (327) (12.5%) 2,000 (291)
Slide 17: Initiatives Going Forward & Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 16
Slide 18: Initiatives for FY2021 Q2 Onward
Initiatives for FY2021 Q2 Onward Accelerate growth in overseas business Focus on promoting the new B.A, which is performing strongly, and strive to further accelerate growth in both storefront and e-commerce operations through strategic additional investment Expand customer touchpoints, planni
Slide 19: Initiatives for FY2021 Q2 Onward
Initiatives for FY2021 Q2 Onward Overseas Brands Renew the major skincare products, and develop them as hero products Focus on digital-based marketing, including livestreaming by KOL Activating Water Essence ＋ In e-commerce, focus on acquiring new, high-LTV customers through Clean Beauty skinc
Slide 20: 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 FY2020 Consol. Net Sales ¥176.3 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 High Prestige Price Range ¥10,000 Prestige ¥5
Slide 21: 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 22: Improvement in Capital Efficiency and Shareholder Returns
(Appendix) Improvement in Capital Efficiency and Shareholder Returns Initiatives to Improve Capital Efficiency ROE movement (％) Operating income CAGR30% 16.0 14.2 Achieve net income growth EPS which is higher than operating Target for 2023 (Earnings per share) income growth by decreasing 12.0 10
Slide 23: 2021 – 2023 Medium-term Management Plan
(Appendix) 2021 – 2023 Medium-term Management Plan Management Indicators for 2023 Consolidated net sales ⇒ ¥215.0 to 225.0 bil. in FY2023 CAGR 7 to 9％ 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% in FY2
Slide 24: Beauty Care Business Results for FY2018 – FY2020 by Brands
(Appendix) Beauty Care Business Results for FY2018 – FY2020 by Brands FY2018 FY2019 FY2020 2019 vs 2020 YoY Change (mil. yen) Results Results Results Amount % Consolidated net sales 248,574 219,920 176,311 (43,609) (19.8%) Beauty care net sales 231,207 214,886 171,658 (43,228) (20.1%) POLA 150,183 1