Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q1 2024 Earnings Presentation
27 slides from Pola Orbis's earnings presentation, 2024
Slide 1: First Quarter of Fiscal 2024 Supplementary Material
First 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: Q1 Key Topics
Q1 Key Topics Cosmetics Market ◼ The scale of the Japanese cosmetics market as a whole showed steady growth. ◼ The cosmetics market in mainland China showed weak cosmetics consumption trends due to uncertainty concerning economic conditions. Source: Ministry of Economy, Trade and Industry, Ministry
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) Q1 Results Q1 Results Amount % Consolidated net sales 42,136 40,886 (1,249) (3.0%) Cost of sales 7,748 7,360 (387) (5.0%) Gross profit 34,387 33,525 (862) (2.5%) SG&A expenses 29,838 30,168 329 1.1% O
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) Q1 Results Q1 Results Amount % Operating income 4,549 3,357 (1,191) (26.2%) Non-operating income 385 1,423 1,037 269.2% Non-operating expenses 103 105 2 2.5% Ordinary inc
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent Despite a decrease in gross profit due to lower revenue, profit attributable to owners of parent increased by ¥383 mil. YoY due to the impact of foreign exchange rates. (mil. yen) Positive impact Negative impact 4,000 3,500 32 3,126 3,000 2,7
Slide 7: Agenda: 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) Q1 Results Q1 Results Amount % Consolidated net sales 42,136 40,886 (1,249) (3.0%) Beauty care 40,950 39,552 (1,398) (3.4%) Real estate 518 499 (18) (3.7%) Others 666 834 168 25.2% Operating income 4,549 3,357 (1,191) (26.2%) Beauty care 4,359 3,57
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2023 FY2024 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Beauty care net sales 40,950 39,552 (1,398) (3.4%) POLA 24,183 22,161 (2,022) (8.4%) ORBIS 9,977 11,446 1,468 14.7% Jurlique 1,908 2,270 361 19.0% Brands under development 4,217 3,673 (544) (12.
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q1 Result Topics ◼ Department stores and e-commerce continued to perform strongly. ◼ Launch of renewed skin-brightening serum ◼ Revenue declined in Japan overall due to lower revenue in the (February), strong initial sales performance consignment sales channel, but Online Merges w
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q1 Result Topics ◼ Revenue growth and significantly increased income in excess of ◼ Launch of renewed skin-brightening serum (February). planned values. Customer acquisition made progress with high value- ◼ The direct selling channel saw double digit growth in the added skincare a
Slide 12: Brand Analysis (3)
Brand Analysis (3) Q1 Result Topics ◼ Strong performance in the key markets of mainland China and ◼ Launch of renewed HERBAL RECOVERY Australia. series. (Global launch in March) ◼ Excluding the impact of foreign exchange rates, income was in line with the previous year. HERBAL RECOVERY series Q1 Res
Slide 13: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development Q1 Result Topics ◼ THREE made a strategic shift to a holistic approach centered on ◼ Promotion of the first anniversary of the BALANCING series and ESSENTIAL SCENTS. THREE’s new BALANCING series. ◼ DECENCIA continued its strong performance with double-digi
Slide 14: Agenda: 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 Q2 Onward
Initiatives for FY2024 Q2 Onward Domestic Business ◼ Aesthetic treatment to capture the overall No. 1 spot in the 2024 Oricon Customer Satisfaction® Ranking Survey*; focus on attracting new customers and encouraging existing customers to visit stores by using aesthetic treatment services with high c
Slide 16: Initiatives for FY2024 Q2 Onward
Initiatives for FY2024 Q2 Onward ◼ Acquire customers in skincare, focusing on the renewed HERBAL RECOVERY series and the star product, face oil. ◼ Aim to improve customer composition by enhancing CRM and raising the customer retention rate. HERBAL RECOVERY series Brands Under Development ◼ Launch a
Slide 17: Agenda: Forecasts for Fiscal 2024
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2024 5. Appendices 16
Slide 18: 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% 179,000 5,695 3.3% Beauty care 168,477 6,822 4.2% 174,000 5,522 3.3% Real estate 2,078 (5) (0.2%) 2,250 171 8.3% Others 2,748 178 7.0% 2,
Slide 19: Appendices
KKK POLA ORBIS Khh HOLDINGS Appendices 18
Slide 20: (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%) - - - - - - Beauty care 39,552 (3.4%) - - - - - - Real esta
Slide 21: (Appendix) Quarterly Results by Brands
(Appendix) Quarterly 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%) - - - - - - POLA 22,161 (8.4%) - - - - - - ORBIS 11,446 14
Slide 22: (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 23: (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 24: (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 25: (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 26: (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 27: (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