Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q1 2016 Earnings Presentation
24 slides from Pola Orbis's earnings presentation, 2016
Slide 1: First Quarter of Fiscal 2016 Supplementary Material
First Quarter of Fiscal 2016 Supplementary Material POLA ORBIS HOLDINGS INC. Director and Vice President Management Planning, Accounting and Global Business Division 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 and Initiatives for Fiscal 2016 4. Appendix 1
Slide 3: Q1 Key Topics
Q1 Key Topics Cosmetic Market ◼ Japanese cosmetic market continued to be strong driven by inbound tourists. (Domestic demand seemed to remain flat.*) ◼ Department stores in urban areas of Japan recorded double-digit growth thanks to the inbound demand and Chinese new year. ◼ In China, while overall
Slide 4: Analysis of Consolidated P&L Changes: Net Sales to Operating Income
Analysis of Consolidated P&L Changes Net Sales to Operating Income FY2015 FY2016 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Consolidated net sales 45,392 49,516 4,123 9.1% Cost of sales 8,703 9,443 740 8.5% Gross profit 36,689 40,073 3,383 9.2% SG&A* expenses 33,779 36,400 2,620 7.8% 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 FY2015 FY2016 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Operating income 2,909 3,673 763 26.2% Non-operating income 195 111 (84) (43.2%) Non-operating expenses 58 402 344 588.4% Ordinary incom
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 47.8% yoy in spite of the negative impact of non-operating expense from unfavorable currency exchange and increased income tax expenses. The major factors are increases in gross profit and extrao
Slide 7: Agenda: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts and Initiatives for Fiscal 2016 4. Appendix 6
Slide 8: Segment Results
Segment Results FY2015 FY2016 YoY Change (mil yen) Q1 Results Q1 Results Amount % Consolidated net sales 45,392 49,516 4,123 9.1% Beauty care 42,268 46,154 3,885 9.2% Real estate 728 757 28 3.9% Others 2,395 2,605 209 8.7% Operating income 2,909 3,673 763 26.2% Beauty care 2,691 3,820 1,129 42.0% Re
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2015 FY2016 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Beauty care net sales 42,268 46,154 3,885 9.2% POLA 22,092 25,134 3,041 13.8% ORBIS 12,550 13,572 1,022 8.1% Jurlique 3,967 3,369 (597) (15.1%) H2O PLUS 1,017 510 (507) (49.9%) Brands under deve
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q1 Result Topics ◼ POLA recorded significant growth both in sales and profit ◼ B.A protector, new product launched from yoy because inbound ratio was low in 2015Q1 and sales of B.A series receives favorable reviews. whitening products continued to be strong. (Day cream with sunscr
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q1 Result Topics ◼ Sales grew due to increased number of customers ◼ Released whitening line adding to encouraged by promotions of the point program. the ORBIS=U series. ◼ ORBIS=U WHITE kicked off a good start at its ◼ Won the #1 in the monthly cosmetics launch in March. rankings
Slide 12: Brand Analysis (3)
Brand Analysis (3) Q1 Result Topics ◼ Net sales decreased by 4%. (AUD basis) ◼ Sun Specialist High Protection ◼ In China, sales grew by 2% yoy. Cream originally sold for the 30th The business model has been changed from anniversary of the brand for limited March.(Agency model) period, came back as a
Slide 13: Brand Analysis (4)
Brand Analysis (4) Q1 Result Topics ◼ Sales were down 48% due to the closure of counters ◼ On track with marketing plan for the brand in Chinese department stores and shrinkage of restage. distribution channels in North America. (USD basis) Q1 Results (mil. yen) YoY change(1) Quarterly net sales (mi
Slide 14: Brand Analysis (5) Brands Under Development
Brand Analysis (5) Brands Under Development Q1 Result Topics ◼ THREE and decencia continued to lead the growth. ◼ "SAKURAISM", a spring limited makeup ◼ THREE had new store openings and successful launch of & skincare collection from THREE was new products that led to approx. 60% sales increase yoy.
Slide 15: Agenda: Forecasts and Initiatives for Fiscal 2016
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts and Initiatives for Fiscal 2016 4. Appendix 14
Slide 16: Forecasts for FY2016 (No change)
Forecasts for FY2016 (No change) Aim to achieve increase in sales and operating income for the 7th consecutive year and achieve the Mid-term Management Plan FY2015 YoY change FY2016 YoY change FY2016 YoY change (mil. yen) Results Amount % Full Year Plan Amount % H1 Plan Amount % Consol. net sales 21
Slide 17: Initiatives from FY2016 Q2 onward
Initiatives from FY2016 Q2 onward Realizing 2014 - 2016 Medium-term Management Plan Sustain stable growth of flagship brands to lead Group earnings ◼ Renew all esthetic menu in April. Newly developed the industry's first esthetic technique that focuses on cheeks. The revamped esthetic menu is compos
Slide 18: Initiatives from FY2016 Q2 onward
Initiatives from FY2016 Q2 onward Realizing 2014 - 2016 Medium-term Management Plan Sales growth and monetization of brands under development ◼ Launch "2016 SUMMER MAKEUP COLLECTION" on May 11th. New colors of make-up items which is core of THREE breakthrough. ◼ Open a concept store in a luxury shop
Slide 19: Agenda: Appendix
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts and Initiatives for Fiscal 2016 4. Appendix 18
Slide 20: Appendix: About POLA ORBIS Group
Appendix: About POLA ORBIS Group Beauty care is the core business of the Group, and 9 different cosmetic brands are operated under the Group umbrella. FY2015 Consol. Net Sales ¥214.8 bil. Overseas Overseas Flagship Flagship Brandsunder Brands under Brands Brands Brands Brands development development
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 Beauty Directors： ◼ High-prestige skincare Approx. POLA THE BEAUTY (PB), 55% ◼ Leading-edge technology in anti- ¥10,000 Esthe-inn and conventional door-to-door aging
Slide 22: Appendix: Beauty Care Business FY2015 Results by Brands
Appendix: Beauty Care Business FY2015 Results by Brands FY2014 FY2015 YoY Change (mil. yen) Results Results Amount % Consolidated net sales 198,094 214,788 16,693 8.4% Beauty care net sales 184,475 200,570 16,095 8.7% POLA 99,571 109,352 9,780 9.8% ORBIS 52,302 56,354 4,051 7.7% Jurlique 17,600 18,3
Slide 23: Appendix: Long-term Vision
Appendix: 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 24: Appendix: 2014-2016 Medium-term Management Plan
Appendix: 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 ◼ Cons