Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — FY2015 Earnings Presentation
34 slides from Pola Orbis's earnings presentation, Aug 24, 2016
Slide 1: Fiscal 2015 Supplementary Material
Fiscal 2015 Supplementary Material POLA ORBIS HOLDINGS INC. 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 performance may differ materially from these pro
Slide 2: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress of the Mid-term Management Plan 4. Forecasts and Initiatives for Fiscal 2016 5. Pharmaceutical Business and Capital Policy 6. Appendix 2
Slide 3: FY2015 Key Topics
FY2015 Key Topics Cosmetic Market In 2015, overall cosmetic market became larger than the previous year due to the impact of inbound tourists.* Especially, cosmetic market in department stores in urban areas had been strong throughout the year after expansion of tax-free shopping range.* Howev
Slide 4: Results of 2015 and Actual vs Planned Variance Analysis
Results of 2015 and Actual vs Planned Variance Analysis FY2014 FY2015 YoY change vs. Plan (Oct 30, 2015) (mil. yen) Results Results Amount % Amount % Consol. net sales 198,094 214,788 16,693 8.4% 4,788 2.3% Operating income 17,683 22,511 4,827 27.3% 1,511 7.2% Ordinary income 19,067 22,359 3,292 17.
Slide 5: Analysis of Consolidated P&L Changes: Net Sales to Operating Income
Analysis of Consolidated P&L Changes Net Sales to Operating Income FY2014 FY2015 YoY change vs.FY2013 (reference) (mil. yen) Results Results Amount % Amount % Consol. net sales 198,094 214,788 16,693 8.4% 23,432 12.2% Cost of sales 39,326 41,800 2,473 6.3% 3,144 8.1% Gross profit 158,767 172,988 14,
Slide 6: Analysis of Consolidated P&L Changes: Operating Income to Net Income
Analysis of Consolidated P&L Changes Operating Income to Net Income FY2014 FY2015 YoY change vs.FY2013 (reference) (mil. yen) Results Results Amount % Amount % Operating income 17,683 22,511 4,827 27.3% 6,493 40.5% Non-operating income 1,684 585 (1,099) (65.3%) (1,387) (70.3%) Non-operating expenses
Slide 7: Factors Impacting Net Income
Factors Impacting Net Income Gross income increased due to increase of sales from beauty care business Net income significantly increased (by +35.8% yoy） due the decrease of extraordinary loss compared to last year. （mil. yen） Positive impact Negative impact 30,000 30,000 Increase in gross profit ma
Slide 8: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress of the Mid-term Management Plan 4. Forecasts and Initiatives for Fiscal 2016 5. Pharmaceutical Business and Capital Policy 6. Appendix 8
Slide 9: Segment Results
Segment Results FY2014 FY2015 YoY change vs.FY2013 (reference) (mil. yen) Results Results Amount % Amount % Consolidated net sales 198,094 214,788 16,693 8.4% 23,432 12.2% Beauty care 184,475 200,570 16,095 8.7% 22,263 12.5% Real estate 3,179 2,951 (227) (7.2%) (83) (2.8%) Others 10,440 11,266 825 7
Slide 10: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2014 FY2015 YoY change vs.FY2013 (reference) (mil. yen) Results Results Amount % Result % Beauty care net sales 184,475 200,570 16,095 8.7% 22,263 12.5% POLA 99,571 109,352 9,780 9.8% 8,611 8.5% ORBIS 52,302 56,354 4,051 7.7% 8,191 17.0% Jurlique 17,600 18,39
Slide 11: Brand Analysis (1)
Brand Analysis (1) FY2015 Result Q4 Topics Sales increased thanks to new skin-whitening products which Fully renewed skincare sold well throughout the year. products “B.A”, the most Operating income was significantly increased by the increase in prestige series which had gross sales and curbed
Slide 12: Brand Analysis (2)
Brand Analysis (2) FY2015 Result Q4 Topics Actual net sales were slightly below that of last year Launched new products since the number of items purchased per customer did for autumn/winter season not reach the expectation. (Right : Melty Moist BB) Operating income remained flat yoy due to en
Slide 13: Brand Analysis (3)
Brand Analysis (3) FY2015 Result Q4 Topics Net sales were up 9% yoy on AUD basis. Launched gift boxes that With negative trend of department stores in China, the contain limited treatment same-store sales continued to struggle and were down 5% rose oil and best-selling yoy. items for holiday s
Slide 14: Brand Analysis (4)
Brand Analysis (4) FY2015 Result Q4 Topics Sales were down due to impact from the closure of Completed office relocation to San Francisco from unprofitable stores in China and the decreased number Chicago in preparation for brand restaging. of distribution channel in North America as part of C
Slide 15: Brand Analysis (5)
Brand Analysis (5) FY2015 Result Q4 Topics THREE and decencia outperformed the plan Won many best cosmetics awards ①Balancing Treatment Eye Lotion THREE had its sales raised by 60% yoy. New ②Shimmering Lip Jam 08 products became hot sellers and Japanese stores ③Nail Polish 28 and overseas expa
Slide 16: Progress of the Mid-term Management Plan
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress of the Mid-term Management Plan 4. Forecasts and Initiatives for Fiscal 2016 5. Pharmaceutical Business and Capital Policy 6. Appendix 16
Slide 17: Progress of the 2014-2016 Mid-term Management Plan
Progress of the 2014 - 2016 Mid-term Management Plan The Group is on track for FY2016(the final year of the Mid-term Management plan) targets on the whole Management indicators Initial targets for Results as of FY2014 to FY2015 Evaluation Progress FY2016 FY2014-2015 POLA and brands under developme
Slide 18: Forecasts and Initiatives for Fiscal 2016
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress of the Mid-term Management Plan 4. Forecasts and Initiatives for Fiscal 2016 5. Pharmaceutical Business and Capital Policy 6. Appendix 18
Slide 19: Forecasts for FY2016
Forecasts for FY2016 Aim to achieve increase in sales and operating income for the 6th consecutive year and achieve the Mid-term Management Plan FY2015 YoY change FY2016 YoY change FY2016 YoY change (mil. yen) Results Amount % Full Year Plan Amount % H1 Plan Amount % Consol. net sales 214,788 16,693
Slide 20: Cosmetic Market Outlook
Cosmetic Market Outlook In Japan, along with the aging of population, demand for anti-aging products are expected to expand further. Asian markets where the Group focuses on, are expected to continue achieving high level of growth. FY2015 FY2016 Onward Japan Surge in demand before the tax hike and
Slide 21: Initiatives for FY2016 Onward (1)
Initiatives for FY2016 Onward (1) Realizing 2014 – 2016 Medium-term Management Plan Sustain stable growth of flagship brands to lead Group earnings Fully-renewed lineup of esthetic menu Launches on April 7th Introduce new management leaders with flexible mindset and rebranding Premium Course: ⇒Rep
Slide 22: Initiatives for FY2016 Onward (2)
Initiatives for FY2016 Onward (2) Realizing 2014 – 2016 Medium-term Management Plan Sustain stable growth of flagship brands to lead Group earnings Add a new lineup to existing major series ⇒Launch ORBIS =U WHITE, the new lineup of ORBIS =U series. Enter into a new channel ⇒Started selling on Am
Slide 23: Initiatives for FY2016 Onward (3)
Initiatives for FY2016 Onward (3) Realizing 2014 – 2016 Medium-term Management Plan Overseas brands contributing to profitability through high sales growth Aim to achieve profitability(after goodwill amortization). In China, change of business model to distributor system is planned to take place
Slide 24: Initiatives for FY2016 Onward (4)
Initiatives for FY2016 Onward (4) Realizing 2014 – 2016 Medium-term Management Plan Sales growth and monetization of brands under development 【SAKURAISM collection】 Hold topical event promotions and launch cutting-edge products. Expand semi-self stores and directly-managed stores in Japan. Pop
Slide 25: Pharmaceutical Business and Capital Policy
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress of the Mid-term Management Plan 4. Forecasts and Initiatives for Fiscal 2016 5. Pharmaceutical Business and Capital Policy 6. Appendix 25
Slide 26: Current situation of pharmaceutical business and its future initiatives
Current situation of pharmaceutical business and its future initiatives Specialize in dermatology and aims for business growth with profit increase Outline of the business Performance outlook ■ “Dermatology Specialty Pharma” Net Sales ・Concentrate business resource in dermatology (medical FY2015 Res
Slide 27: Initiatives to improve capital efficiency and shareholder return
Initiatives to improve capital efficiency and shareholder return Initiatives to improve capital efficiency (％) ROE movement 10.0 9.0 Operating income CAGR15% 7.8 EPS Achieve net income growth 8.0 (Earnings per share) which is higher than operating 5.9 ROE 8% = income growth 6.0 5.2 4.2 4.3 in FY
Slide 28: Appendix
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress of the Mid-term Management Plan 4. Forecasts and Initiatives for Fiscal 2016 5. Pharmaceutical Business and Capital Policy 6. Appendix 28
Slide 29: Appendix: New Product Launches in FY2016 Q1
Appendix: New Product Launches in FY2016 Q1 Whitening Base make Products Skin Whitening Products launched on March 4th launched on March 24th Day Serum ORBIS =U WHITE series 2 types, 30g each ¥3,800 (tax excluded) ・Jelly Wash 120g, ¥2,100 (tax excluded) Powder Foundation ・Lotion 6 colors, 14g each 1
Slide 30: (Reference) IR Topics of the Group
(Reference) IR Topics of the Group POHD received “Prime Business Award 2015” from Japan Investor Relations Association POLA ORBIS HOLDINGS INC. received “Prime Business Award 2015” from Japan Investor Relations Association(JIRA). It was the first time for the company to receive the award since it we
Slide 31: Appendix: About POLA ORBIS Group
Appendix: About POLA ORBIS Group Beauty care is the core business of the Group, and 9 different cosmetic brands are operated under the Group umbrella. FY2015 Consol. Net Sales ¥214.8 bil. Overseas Flagship Brands under Brands Brands development High prestige ¥10,000 Prestige Beauty care business 93%
Slide 32: Appendix: Beauty Care Business Brand Portfolio
Appendix: Beauty Care Business Brand Portfolio Sales Brand Concept and products Price Sales channel ratio* Consignment sales through Beauty Directors： High-prestige skincare Approx. POLA THE BEAUTY (PB), 55% Leading-edge technology in anti- ¥10,000 Esthe-inn and conventional door-to-door aging
Slide 33: Appendix: Long-term Vision
Appendix: Long-term Vision Corporate Philosophy STAGE3 “Inspire all people and touch their hearts” 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%
Slide 34: Appendix: 2014-2016 Medium-term Management Plan
Appendix: 2014–2016 Medium-term Management Plan The 2nd stage of the long-term vision for 2020 Aim to enhance the enterprise value by further strengthening domestic earnings structure, accelerating overseas expansion, and improving capital efficiency. Consolidated net sales Capital efficiency Cons