Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q3 2024 Earnings Presentation
29 slides from Pola Orbis's earnings presentation, November 2024
Slide 1: Third Quarter of Fiscal 2024 Supplementary Material
Third Quarter of Fiscal 2024 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: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 1
Slide 3: Q3 Key Topics
Q3 Key Topics Cosmetics Market ◼ The scale of the Japanese cosmetics market as a whole showed steady growth. ◼ In mainland China, cosmetics consumption was weak amid persistently uncertain economic conditions. Source: Ministry of Economy, Trade and Industry, Ministry of Internal Affairs and Communic
Slide 4: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2023 FY2024 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Consolidated net sales 126,739 125,395 (1,344) (1.1%) Cost of sales 22,799 22,803 3 0.0% Gross profit 103,939 102,592 (1,347) (1.3%) SG&A expenses 92,026 91,
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 FY2023 FY2024 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Operating income 11,913 10,817 (1,095) (9.2%) Non-operating income 3,159 1,142 (2,017) (63.8%) Non-operating expenses 242 234 (
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent Profit attributable to owners of parent decreased by ¥2,335 mil. YoY due to a decrease in gross profit caused by lower revenue and a decrease in foreign exchange gains. Positive impact Negative impact (mil. yen) 9,284 50 1,102 987 1,535 245 3
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 6
Slide 8: Segment Results
Segment Results FY2023 FY2024 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Consolidated net sales 126,739 125,395 (1,344) (1.1%) Beauty care 123,260 121,487 (1,773) (1.4%) Real estate 1,557 1,577 19 1.2% Others 1,920 2,330 409 21.3% Operating income 11,913 10,817 (1,095) (9.2%) B
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2023 FY2024 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Beauty care net sales 123,260 121,487 (1,773) (1.4%) POLA 72,860 68,333 (4,527) (6.2%) ORBIS 31,227 35,838 4,611 14.8% Jurlique 5,880 6,014 134 2.3% Brands under development 12,601 1
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q3 Result (YTD) Topics ◼ The decline in revenue from the consignment sales was alleviated due to ◼ Launch of new skin analysis services an increase in revenue at growing stores that secured online contact points and the renewed APEX (July) and enhanced the customer experience valu
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q3 Result (YTD) Topics ◼ Double-digit revenue growth and a substantial increase in income, ◼ Launch of the first liquid foundation from the exceeding the plan. ORBIS U series (September) ◼ In the direct selling channel, both customer numbers and purchase per customer increased. ◼
Slide 12: Brand Analysis (3)
Brand Analysis (3) Q3 Result (YTD) Topics ◼ Although revenue continued to increase in Australia, the business ◼ A limited-edition kit of the popular face struggled in mainland China and Hong Kong due to the impact of oil launched (September) a deterioration in business conditions, and revenue as a w
Slide 13: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development Q3 Result (YTD) Topics ◼ Losses in brands under development were steadily ameliorated overall. ◼ Restaging of the highly sensitive skin care ◼ THREE continued to focus on holistic care proposals, and domestic sales series that was the origin of the of holi
Slide 14: Initiatives Going Forward
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 13
Slide 15: Initiatives for FY2024 Q4 Onward
Initiatives for FY2024 Q4 Onward Domestic Business ◼ Use skin analysis as a hook to expand new customer contact points. Increase experience value through personalized proposals to accelerate the growth of growing stores that are achieving increases in revenue. ◼ Use newly-launched B.A GRANDLUXE O (O
Slide 16: Initiatives for FY2024 Q4 Onward
Initiatives for FY2024 Q4 Onward Domestic Business ◼ Aim to expand the customer base and promote purchases to achieve upside in this fiscal year and growth in the next. • Strengthen relationships with existing customers through initiatives such as events at flagship store to reinforce the customer b
Slide 17: Initiatives for FY2024 Q4 Onward
Initiatives for FY2024 Q4 Onward ◼ Launch a moisturizing cream containing essential oils from the BALANCING series (October) and strengthen customer acquisition by holistic products. ◼ Promote wider recognition of ESSENTIAL SCENTS, for which new customer acquisition is progressing favorably, and str
Slide 18: Forecasts for Fiscal 2024
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 17
Slide 19: Forecasts for Fiscal 2024 (Unchanged)
Forecasts for Fiscal 2024 (Unchanged) FY2023 YoY Change FY2024 YoY Change (mil. yen) Results Amount % Full-year plan Amount % Consol. net sales 173,304 6,996 4.2% 173,500 195 0.1% Beauty care 168,477 6,822 4.2% 168,500 22 0.0% Real estate 2,078 (5) (0.2%) 2,250 171 8.3% Others 2,748 178 7.0% 2,750 1
Slide 20: Latest Topics
Latest Topics POLA CHEMICAL INDUSTRIES, INC. wins the Johann Weichers Poster Award (top award) at the IFSCC Congress ◼ The award was won from over 600 poster presentations at the 34th Congress of the International Federation of Societies of Cosmetic Chemists (IFSCC) held from October 14 to 17, 2024,
Slide 21: Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 20
Slide 22: (Appendix) Quarterly Segment Results
(Appendix) Quarterly Segment Results ◼ Net sales FY2024 Jan.–Mar. FY2024 Apr.–Jun. FY2024 Jul.–Sep. FY2024 Oct.–Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Consolidated net sales 40,886 (3.0%) 42,949 (1.7%) 41,558 1.6% - - Beauty care 39,552 (3.4%) 41,
Slide 23: (Appendix) Quarterly Beauty Care Business Results by Brands
(Appendix) Quarterly Beauty Care Business Results by Brands ◼ Net sales FY2024 Jan.–Mar. FY2024 Apr.–Jun. FY2024 Jul.–Sep. FY2024 Oct.–Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Beauty care net sales 39,552 (3.4%) 41,770 (1.9%) 40,165 1.1% - - POLA 22
Slide 24: (Appendix) Beauty Care Business Results for FY2021–FY2023 by Brands
(Appendix) Beauty Care Business Results for FY2021–FY2023 by Brands FY2022–FY2023 FY2021 FY2022 FY2023 YoY Change Results (mil. yen) (recalculated under the Results Results Amount % 2022 standard) Consolidated net sales 174,896 166,307 173,304 6,996 4.2% Beauty care net sales 170,403 161,654 168,477
Slide 25: (Appendix) About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and six different cosmetics brands are operated under the Group umbrella. FY2023 Consol. Net Sales ¥173.3 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 High Prestige Price Range ¥10,000 Prestige
Slide 26: (Appendix) Beauty Care Business Brand Portfolio
(Appendix) Beauty Care Business Brand Portfolio Sales ratio* Brand Concept and products Price Main sales channel ◼ Japan: Consignment sales, department stores, e-commerce and ◼ High-prestige skincare Approx. retail stores 59% ◼ Leading-edge technology in aging- ¥10,000 ◼ Overseas: Department stores,
Slide 27: (Appendix) Improvement in Capital Efficiency and Shareholder Returns
(Appendix) Improvement in Capital Efficiency and Shareholder Returns 【Enhancing Capital Profitability】 Return on equity (ROE) has been declining due to the decrease in profit. Under the new Medium-term Management Plan, we aim to achieve ROE of at least 10% by 2026 through capital profitability enhan
Slide 28: (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 29: (Appendix) 2024–2026 Medium-term Management Plan
(Appendix) 2024–2026 Medium-term Management Plan Management Indicators for 2026 Domestic Net Sales CAGR approx. 4% Consolidated ¥200.0 bil. Overseas Net Sales CAGR approx.12% Net Sales CAGR approx. 5% Overseas Sales Ratio 20% Consolidated Operating Income Operating margin 12-13% Consolidated payout