Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q3 2013 Earnings Presentation
18 slides from Pola Orbis's earnings presentation, 2013
Slide 1: Results for 1Q-3Q of Fiscal 2013 Supplementary Material
Results for 1Q-3Q of Fiscal 2013 Supplementary Material Naoki Kume DIRECTOR OF FINANCE/MANAGEMENT PLANNING DIV. POLA ORBIS HOLDINGS INC. This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Act
Slide 2: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2013 2
Slide 3: Highlights of Consolidated Performance
Highlights of Consolidated Performance Thanks to the growth of overseas brands and positive impact from foreign exchange, consolidated net sales exceeded from the same period last year. Profitability improved mainly at domestic brands, resulting significantly improved operating income. FY2012 FY2013
Slide 4: Analysis of Consolidated P&L Changes: Net Sales to Operating Income
Analysis of Consolidated P&L Changes Net Sales to Operating Income FY2012 FY2013 YoY Change (Millions of yen) 3Q Results 3Q Results Amount % Net Sales 129,724 137,346 7,621 5.9% Cost of Sales 26,449 27,536 1,086 4.1% Gross Profit 103,274 109,810 6,535 6.3% Selling, General and Administrative Expense
Slide 5: Analysis of Consolidated P&L Changes: Operating Income to Net Income
Analysis of Consolidated P&L Changes Operating Income to Net Income FY2012 FY2013 YoY Change (Millions of yen) 3Q Results 3Q Results Amount % Operating Income 8,013 9,809 1,796 22.4% Non-operating Income 520 1,126 605 116.3% Non-operating Expenses 108 83 -24 -22.7% Ordinary Income 8,425 10,852 2,426
Slide 6: Factors Impacting Net Income
Factors Impacting Net Income (Millions of yen) Positive Impact Negative Impact Note: In FY2012, Jurlique was consolidated from February 4th. 12,000 +467 mil. Elimination of Jurlique’s one time expense 10,000 -¥907 mil. Impact from consolidation of +¥629 mil. -¥1,734 mil. -¥1,547 mil. Jurlique Positi
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2013 7
Slide 8: Operating Results by Segment
Operating Results by Segment FY2012 FY2013 YoY Change (Millions of yen) 3Q Results 3Q Results Amount % Consolidated Net Sales 129,724 137,346 7,621 5.9% Beauty Care 120,847 127,720 6,872 5.7% Real Estate 2,143 2,266 122 5.7% Others 6,732 7,359 627 9.3% Operating Income 8,013 9,809 1,796 22.4% Beauty
Slide 9: Beauty Care Segment Operating Results by Product Type
Beauty Care Segment Operating Results by Product Type FY2012 FY2013 YoY Change (Millions of yen) 3Q Results 3Q Results Amount % Net Sales 120,847 127,720 6,872 5.7% Cosmetics 111,955 119,139 7,183 6.4% Fashion 8,892 8,581 -311 -3.5% Operating Income 6,687 8,676 1,989 29.7% Cosmetics 6,892 8,906 2,01
Slide 10: Beauty Care Segment Operating Results by Brand
Beauty Care Segment Operating Results by Brand FY2012 FY2013 YoY Change (Millions of yen) 3Q Results 3Q Results Amount % Net Sales 120,847 127,720 6,872 5.7% POLA 71,160 72,421 1,261 1.8% ORBIS 35,471 35,467 -3 -0.0% Brands under development 5,956 6,395 438 7.4% Overseas brands（Jurlique・H2O+） 8,259
Slide 11: Progress with Key Strategies During the Third Quarter (1)
Progress with Key Strategies During the Third Quarter (1) 1 －Generate stable profits with flagship brands Product ◆ Launched “B.A GRANDLUXE II” in September ◆ Number of PB stores: 593 (21 new stores since Dec. 2012) ◆ PB stores 3Q cosmetics sales: +7.6% YoY Channel (Like for like: +7.1% YoY) Referen
Slide 12: Progress with Key Strategies During the Third Quarter (2)
Progress with Key Strategies During the Third Quarter (2) 2 －Accelerate growth of brands under development ◆ Hair care series, Scalp & Hair, launched in July THREE “Scalp & Hair” launched in July 3 －Develop presence overseas by capitalizing on the Group’s strengths ◆ Jurlique ⇒ Opened new stores in
Slide 13: Real Estate/Others Segment Results
Real Estate/Others Segment Results FY2012 FY2013 YoY Change (Millions of yen) 3Q Results 3Q Results Amount % Real Estate Net Sales 2,143 2,266 122 5.7% Operating Income 917 1,011 93 10.2% ◆ With improved occupancy rate, both sales and operating income exceeded from the same period last year. FY2012
Slide 14: Forecasts for Fiscal 2013
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2013 14
Slide 15: Forecasts for Fiscal 2013 (same as initial forecasts)
Forecasts for Fiscal 2013 (same as initial forecasts) Aim to achieve the targets with stable growth of domestic brands and expansion of overseas brands. FY2012 FY2013 YoY Change (Millions of yen) Results Full Year Forecasts Amount % Consolidated Net Sales 180,873 188,500 7,626 4.2% Beauty Care 168,8
Slide 16: Initiatives for the Fourth Quarter
Initiatives for the Fourth Quarter ◆ Plans to expand the sales organization and promote new openings of PB stores to bring total number of PB stores to 600 by the end of the year ◆ Strengthen high-value-added products, especially B.A series ◆ Strengthen One to One approach to customers by POLA renew
Slide 17: FY2011–FY2013 Medium-term Management Plan
FY2011 – FY2013 Medium-term Management Plan *CAGR: Compound Generate stable profits with ◆ Consolidated Net Sales ⇒ CAGR* 2～3% annual growth rate flagship brands and invest funds ◆ Operating Income ⇒ CAGR 10% or higher to implement growth strategy ◆ Operating Margin ⇒ 9% (10% in Japan) in FY2013 Str
Slide 18: Long-term Vision (Goal for 2020)
Long-term Vision (Goal for 2020) Management Indicators Corporate Philosophy Net sales: ¥250.0 billion or more “Inspire all people and Overseas sales ratio: 20% or more touch their hearts” Operating margin: Top level in the industry (13-15%) Scale Domestic and overseas: Accelerate growth ¥250.0 throu