Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q1 2018 Earnings Presentation
24 slides from Pola Orbis's earnings presentation, 2018
Slide 1: First Quarter of Fiscal 2018 Supplementary Material
First 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: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2018 4. Initiatives Going Forward & Appendices 1
Slide 3: Q1 Key Topics
Q1 Key Topics Cosmetics Market The Japanese cosmetics market overall showed steady growth. However, the domestic market alone, excluding inbound demand seemed to be flat year-on-year.* By price range, high prestige remained steady. As for the inbound market, the market overall continued to gro
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) Q1 Results Q1 Results Amount % Consolidated net sales 56,074 59,526 3,452 6.2% Cost of sales 9,320 9,445 124 1.3% Gross profit 46,753 50,081 3,327 7.1% SG&A* expenses 37,626 40,137 2,511 6.7% Opera
Slide 5: Analysis of Consolidated P&L Changes: Operating Income to Profit
Analysis of Consolidated P&L Changes Operating Income to Profit Attributable to Owners of Parent FY2017 FY2018 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Operating income 9,127 9,943 816 8.9% Non-operating income 107 155 48 44.5% Non-operating expenses 279 638 359 128.4% Ordinary income 8,
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 10.9% yoy due to an increase in the gross margin and improvements in the profit structure Positive impact Negative impact (mil. yen) Increase in sales of the POLA brand Costs for customer 10,000
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) Q1 Results Q1 Results Amount % Consolidated net sales 56,074 59,526 3,452 6.2% Beauty care 52,345 55,821 3,476 6.6% Real estate 675 676 1 0.2% Others 3,053 3,028 (25) (0.8%) Operating income 9,127 9,943 816 8.9% Beauty care 8,790 9,670 879 10.0% Rea
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2017 FY2018 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Beauty care net sales 52,345 55,821 3,476 6.6% POLA 33,126 36,164 3,037 9.2% ORBIS 12,760 12,475 (284) (2.2%) Jurlique 2,603 2,599 (3) (0.1%) H2O PLUS 635 517 (118) (18.6%) Brands under developm
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q1 Result Topics The number of existing customer grew. Renewed “White Shot”, New whitening products are strong. the whitening series. Entered the Korean duty-free store market.(January) “MAQUIA Whitening & UV Grand-Prix” The inbound ratio was approximately 11%. - Best of
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q1 Result Topics Developed promotions centered on “ORBIS=U”. Initiatives for The purchase price per customer recovered to the unified design same level as the first quarter of last year. However, across the brand the number of customers decreased. Focused on acquisition of
Slide 12: Brand Analysis (3)
Brand Analysis (3) Q1 Result Topics Sales increased by 1% yoy (on an AUD basis). Reinforce brand By region, sales grew in China, Hong Kong and duty- communication as a premium free markets. natural skincare brand Operating income dropped due to strengthened investments in branding. Q1 Result
Slide 13: Brand Analysis (4)
Brand Analysis (4) Q1 Result Topics Sales were down year on year in North America due Implemented management to the reduction of sales channels. changes and kicked off for Strengthened communication with existing retailers brand revitalization and implemented marketing strategies focused on he
Slide 14: Brand Analysis (5) Brands Under Development
Brand Analysis (5) Brands Under Development Q1 Result Topics At THREE, sales were strong, especially from New products from THREE existing customers. Holistic care products and DECENCIA contributed to the sales. From left: Costs for launching new brands amounted to THREE new base makeup approx
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) FY2018 YoY Change FY2018 YoY Change (mil. yen) H1 Plan Amount % Full-year Plan Amount % Consol. net sales 121,000 3,621 3.1% 253,000 8,664 3.5% Beauty care 112,900 3,596 3.3% 235,800 8,666 3.8% Real estate 1,300 (48) (3.6%) 2,600 (94) (3.5%) Others 6,800 73 1.1% 14,6
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 onward
Initiatives for 2018 onward ■ Sustain stable growth of flagship brands to lead Group earnings Launch Wrinkle Shot overseas (see next page for details) Introduce seasonal promotions for new whitening products and cross-sells through Wrinkle Shot Accelerate overseas store openings (Open four new
Slide 19: Overseas Expansion of POLA Wrinkle Shot Serum
Overseas Expansion of POLA Wrinkle Shot Serum Overseas launch in 2018; starting from June 15 (Hong Kong and Taiwan) ■ Being backed up by post-marketing surveillance in Japan since the launch Set out to undertake overseas launches There are no serious problems (in Hong Kong and Taiwan, at the moment
Slide 20: (Appendix) About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and 6 different cosmetics brands are operated under the Group umbrella FY2017 Consol. Net Sales ¥244.3 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 High Prestige New Brands ×3 * Price Range ¥10,
Slide 21: (Appendix) Beauty Care Business Brand Portfolio
(Appendix) Beauty Care Business Brand Portfolio Sales Brand Concept and products Price Sales channel ratio* Consignment sales through High-prestige skincare Beauty Directors: Approx. POLA THE BEAUTY (PB), Leading-edge technology in 63% anti-aging and skin-whitening ¥10,000 Esthe-inn and conven
Slide 22: (Appendix) 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% or higher STAGE1 earnings structure and •Operating margin: 13-15
Slide 23: (Appendix) 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 24: (Appendix) 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