Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q3 2014 Earnings Presentation
26 slides from Pola Orbis's earnings presentation, 2014
Slide 1: Third Quarter of Fiscal 2014 Supplementary Material
Third Quarter of Fiscal 2014 Supplementary Material POLA ORBIS HOLDINGS INC. Director and Vice President Management Planning, Accounting and Global Business Strategy 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 2014 4. Reference 1
Slide 3: Q3 Key Topics
Q3 Key Topics Cosmetic Market In the domestic high-end segment, consumer sentiment was down due to the impact of the tax hike. From July, sales at domestic department stores were up YoY. However, the shipment data of cosmetic products, published by Ministry of Economy, Trade and Industry, indica
Slide 4: Analysis of Consolidated P&L Changes: Net Sales to Operating Income
Analysis of Consolidated P&L Changes Net Sales to Operating Income FY2013 FY2014 YoY (mil. yen) Q3 Result Q3 Result Amount % Consolidated net sales 137,346 142,019 4,673 3.4% Cost of sales 27,536 27,896 360 1.3% Gross profit 109,810 114,122 4,312 3.9% SG&A* expenses 100,000 103,754 3,754 3.8% Operat
Slide 5: Analysis of Consolidated P&L Changes: Operating Income to Net Income
Analysis of Consolidated P&L Changes Operating Income to Net Income FY2013 FY2014 YoY (mil. yen) Q3 Result Q3 Result Amount % Operating income 9,809 10,367 558 5.7% Non-operating income 1,126 706 (419) (37.3%) Non-operating expenses 83 205 121 145.2% Ordinary income 10,852 10,869 17 0.2% Extraordina
Slide 6: Factors Impacting Net Income
Factors Impacting Net Income In spite of the increase in sales and gross profit, net income remained at the same level of the same period last year because labor and overhead expenses at the overseas brands increased and SG&A expenses at the domestic brands were focused on Q3. (mil. yen) Mainly from
Slide 7: Agenda: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2014 4. Reference 6
Slide 8: Segment Results
Segment Results FY2013 FY2014 YoY (mil. yen) Q3 Result Q3 Result Amount % Consolidated net sales 137,346 142,019 4,673 3.4% Beauty care 127,720 131,944 4,224 3.3% Real estate 2,266 2,379 113 5.0% Others 7,359 7,695 335 4.6% Operating income 9,809 10,367 558 5.7% Beauty care 8,676 9,405 728 8.4% Real
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2013 FY2014 YoY (mil. yen) Q3 Result Q3 Result Amount % Beauty care net sales 127,720 131,944 4,224 3.3% POLA 72,421 72,118 (303) (0.4%) ORBIS 35,467 37,641 2,173 6.1% Jurlique 9,737 11,532 1,794 18.4% H2O PLUS 3,697 3,259 (438) (11.9%) Brands under developme
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q3 Results Quarter topics Due to the tax hike, consumer sentiment in the Launched renewed high-end segment was weakened and “APEX” series in July. purchase per customer was down. Aim to improve the life time value of existing customers by launching new products. Q3 Results (
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q3 Results Quarter topics “ORBIS =U” launched in H1, continued to sell “ORBIS =U” was ranked no.1 in lotion well and the reaction to the tax hike has ended. category in 2014H1 by @cosme. Both sales and OP were up YoY. Launched “Fondant Rich Foundation” Continued to success
Slide 12: Brand Analysis (3)
Brand Analysis (3) Q3 Results Quarter topics In China, slowed down new store openings, but Launched “Nutri-Define”, new the existing stores did well. anti-aging skincare products As a result, net sales was up 18% YoY on local infused with the Group’s R&D currency basis. knowledge. On the other
Slide 13: Brand Analysis (4)
Brand Analysis (4) Q3 Results Quarter topics Continued to struggle in China. Q3 results fell Appointed new management members who below the same period last year. have experiences in the Chinese market to Net sales was down by 17% YoY on local strengthen the partnership with the JV. currency b
Slide 14: Brand Analysis (5) Brands Under Development
Brand Analysis (5) Brands Under Development Q3 Results Quarter topics At THREE, basic skincare items sold well. Both THREE and decencia Decencia increased customer base and showed over 70% YoY sales purchase per customer steadily. growth even after the tax hike. Launched in August Pdc strugg
Slide 15: Agenda: Forecasts for Fiscal 2014
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2014 4. Reference 14
Slide 16: Forecasts for FY2014 (No change since July 30)
Forecasts for FY2014 (No change since July 30) Domestic business, especially ORBIS is performing strongly, and it will fill in for the underperforming overseas brands to meet the annual consolidated targets, and achieve increase in sales and operating income for the five consecutive years. FY2014 Yo
Slide 17: Initiatives for FY2014 Q4
Initiatives for FY2014 Q4 Realizing 2014 - 2016 Medium-term Management Plan Sustain stable growth of flagship brands to lead Group earnings Launched renewed “B.A RED” in October. Aim to acquire new customers and increase repeat customers. Launch limited products from B.A series, targeting the re
Slide 18: Latest News at Our Group
Latest News at Our Group POLA CHEMICAL INDUSTRIES wins the Best Basic Research Award at IFSCC* Congress POLA CHEMICAL INDUSTRIES, INC. won the Best Basic Research Award at the 28th IFSCC Congress held in Paris from October 27th to 30th. This is the 7th award that POLA CHEMICAL INDUSTRIES receive
Slide 19: Agenda: Reference
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2014 4. Reference Download historical financial data here. http://ir.po-holdings.co.jp/en/Library/Factsheet.html 18
Slide 20: (Reference) ORBIS: The New Purchase Point System
(Reference) ORBIS: The New Purchase Point System Until September 23, 2014 Instant volume discount based on the amount of purchase From September 24, 2014 Purchase points One to One sales promotion Other Points will be granted for an order Instead of the former volume Points can be used from mo
Slide 21: (Reference) POLA: Q4 Sales Promotion
(Reference) POLA: Q4 Sales Promotion Launched on October 4th Launched on November 7th Launched on November 7th RED B.A B.A THE CREAM Premium Box B.A GRAND LUXE II Limited Box (Limited version) (Limited version) ￥5,000～￥15,000 (before tax) ￥35,000 (before tax) ￥24,000 (before tax) 20
Slide 22: (Reference) About POLA ORBIS Group
(Reference) About POLA ORBIS Group Beauty care is the core business of the Group, and 9 different cosmetic brands are operated under the Group umbrella. FY2013 Consol. Net Sales ¥191.3 bil. Overseas Overseas Flagship Flagship Brandsunder Brands under Brands Brands Brands Brands development developme
Slide 23: (Reference) Beauty Care Business Brand Portfolio
(Reference) Beauty Care Business Brand Portfolio Sales Brand Concept and products Price Sales channel ratio* Consignment sales through POLA LADIES： High-prestige skincare Approx. POLA THE BEAUTY (PB), 57% Leading-edge technology in anti- ¥10,000 Esthe-inn and conventional door-to-door aging an
Slide 24: (Reference) Long-term Vision
(Reference) 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 25: (Reference) 2014–2016 Medium-term Management Plan
(Reference) 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 Co
Slide 26: (Reference) Domestic Cosmetic Market
(Reference) Domestic Cosmetic Market In 2013, domestic cosmetic market showed 1.8% growth. However, in the past five years, it remained flat. Market ratio increased in skin-whitening and anti-aging fields, and high prestige products priced higher than ¥10,000, where the Group puts efforts in. Domest