Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — FY2024 Earnings Presentation
36 slides from Pola Orbis's earnings presentation, 2025
Slide 1: Fiscal 2024 Supplementary Material
Fiscal 2024 Supplementary Material POLA ORBIS HOLDINGS INC. Representative Director and President Yoshikazu Yokote This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual performance may di
Slide 2: Agenda: Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress on the Medium-term Management Plan 4. Initiatives Going Forward and Forecasts for Fiscal 2025 5. Sustainability and ESG Initiatives 6. Appendices 1
Slide 3: FY2024 Key Topics
FY2024 Key Topics Cosmetics Market ◼ We believe the scale of the Japanese cosmetics market as a whole experienced low-single-digit growth amid a moderate recovery in business conditions. ◼ In mainland China, the economic stagnation persisted and cosmetics consumption remained sluggish. Source: Minis
Slide 4: Actual vs Planned Variance Analysis
Actual vs Planned Variance Analysis FY2023 FY2024 YoY change Aug. 5, 2024 vs. Plan (mil. yen) Results Results Amount % Plan Amount % Consol. net sales 173,304 170,359 (2,944) (1.7%) 173,500 (3,140) (1.8%) Operating income 16,080 13,810 (2,269) (14.1%) 14,500 (689) (4.8%) Ordinary income 18,469 16,08
Slide 5: 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) Results Results Amount % Consolidated net sales 173,304 170,359 (2,944) (1.7%) Cost of sales 31,227 31,846 619 2.0% Gross profit 142,076 138,513 (3,563) (2.5%) SG&A expenses 125,996 124,702 (1,293) (1
Slide 6: 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) Results Results Amount % Operating income 16,080 13,810 (2,269) (14.1%) Non-operating income 2,691 2,529 (161) (6.0%) Non-operating expenses 302 257 (45) (14.9%) Ordinary
Slide 7: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent Profit attributable to owners of parent decreased by ¥379 mil. YoY due to a decrease in gross profit caused by lower revenue. (mil. yen) Positive impact Negative impact 9,665 332 9,286 2,413 1,674 689 691 116 1,149 2,034 739 FY2023 Decrease D
Slide 8: Agenda: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress on the Medium-term Management Plan 4. Initiatives Going Forward and Forecasts for Fiscal 2025 5. Sustainability and ESG Initiatives 6. Appendices 7
Slide 9: Segment Results
Segment Results FY2023 FY2024 YoY Change (mil. yen) Results Results Amount % Consolidated net sales 173,304 170,359 (2,944) (1.7%) Beauty care 168,477 165,060 (3,417) (2.0%) Real estate 2,078 2,214 135 6.5% Others 2,748 3,085 337 12.3% Operating income 16,080 13,810 (2,269) (14.1%) Beauty care 16,35
Slide 10: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2023 FY2024 YoY Change (mil. yen) Results Results Amount % Beauty care net sales 168,477 165,060 (3,417) (2.0%) POLA 98,499 92,798 (5,700) (5.8%) ORBIS 42,874 48,190 5,315 12.4% Jurlique 9,032 8,763 (268) (3.0%) Brands under development 17,368 15,307 (2,060)
Slide 11: Brand Analysis (1)
Brand Analysis (1) FY2024 Result Topics ◼ There was an overall improvement in the rate of revenue decline from ◼ Launched the first-ever cream from B.A GRANDLUXE, consignment sales, with an increase in sales growth at growing stores the B.A series premium line (October) compared to the first half. ◼
Slide 12: Brand Analysis (2)
Brand Analysis (2) FY2024 Result Topics ◼ We maintained double-digit revenue and income growth. ◼ Launched an eye serum containing retinol, ◼ In the direct selling channel, customer retention rates rose, strengthening the lineup of functional products contributing to higher lifetime value (LTV). (No
Slide 13: Brand Analysis (3)
Brand Analysis (3) FY2024 Result Topics ◼ Revenue increased in Australia but impacted by further ◼ Launched multiple limited-edition kits deterioration in business conditions in mainland China and containing popular skincare products. Hong Kong. ◼ Gross profit declined due to the decrease in sales a
Slide 14: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development FY2024 Result Topics ◼ DECENCIA’s revenue increased with a more stable customer base due ◼ Launched a moisturizing cream containing essential to strong new customer acquisitions and customer accumulation. Income oils from THREE, expanding the lineup of hol
Slide 15: Agenda: Medium-term Management Plan
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress on the Medium-term Management Plan 4. Initiatives Going Forward and Forecasts for Fiscal 2025 5. Sustainability and ESG Initiatives 6. Appendices 14
Slide 16: Progress of 2024–2026 Medium-term Management Plan
Progress of 2024–2026 Medium-term Management Plan Management Indicators for 2026 Domestic Net Sales CAGR approx. 4% Consolidated ¥200.0 bil. Net Sales Overseas Net Sales CAGR approx. 12%. CAGR approx. 5% Overseas Sales Ratio 20% Consolidated Operating margin 12-13% Operating Income Consolidated payo
Slide 17: Agenda: Initiatives and Forecasts for Fiscal 2025
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress on the Medium-term Management Plan 4. Initiatives Going Forward and Forecasts for Fiscal 2025 5. Sustainability and ESG Initiatives 6. Appendices 16
Slide 18: Trends in the Cosmetics Market
Trends in the Cosmetics Market Domestic Cosmetics Market Chinese Cosmetics Sales 2023–2024 Mainland China Retail Sales, YoY change <Cosmetics> (100 mil. yen) (%) 14,000 15 12,000 10 10,000 5 8,000 6,000 0 4,000 -5 2,000 -10 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 2018 2019 2020 2021 2022 2023 2024 FY2
Slide 19: Initiatives Going Forward
Initiatives Going Forward In 2024, the speed of recovery in consignment sales and the growth of FY2025 Net sales: in line with FY2024 the Chinese market fell far short of initial expectations. We will strive to Plan Operating income: down approx. 10 to 12% build the business base to get back on a gr
Slide 20: Initiatives Going Forward: Customer contact point
Initiatives Going Forward Consignment Sales Department Stores, E-commerce, B2B, New Channels We will achieve an increase in brand value for POLA salons. • Strengthen new customer acquisition and engagement Customer contact point pivoting on brand experience through counseling and We will update our
Slide 21: Initiatives Going Forward: Overseas Business
Initiatives Going Forward FY2025 Overseas sale: Overseas Business Plan down approx. 7 to 8% Rebuild the strategy for the Chinese business ◼ Revenue is expected to decrease in 2025 due to the impact of business conditions and the closure of unprofitable stores. We will prioritize improving profitabil
Slide 22: Initiatives Going Forward: ORBIS
Initiatives Going Forward In 2024, we achieved high growth through the stabilization of the customer base and the FY2025 Net sales: up approx. 2 to 3% expansion of sales channels. Going forward, we will aim for an even higher-profit Plan Operating income: up approx. 5 to 6% business structure by foc
Slide 23: Initiatives Going Forward: Structural Reform
Initiatives Going Forward Results have fallen far short of the plan in 2024 due to the impact of deteriorating business conditions in mainland China and Hong Kong. We will engage in structural reforms to swiftly achieve profitability. Factors impacting operating income FY2024 FY2025 FY2026 (Result)
Slide 24: Initiatives Going Forward: Brands Under Development
Initiatives Going Forward: Brands Under Development ◼ Promote the implementation of customer retention measures utilizing customer data and build a stable customer structure to achieve further growth. ◼ Focus on acquiring highly loyal customers by developing star products and stronger communication
Slide 25: Forecasts for Fiscal 2025
Forecasts for Fiscal 2025 FY2024 YoY Change FY2025 YoY Change (mil. yen) Full-year Results Amount % Full-year Plan Amount % Consol. net sales 170,359 (2,944) (1.7%) 174,000 3,640 2.1% Beauty care 165,060 (3,417) (2.0%) 168,200 3,139 1.9% Real estate 2,214 135 6.5% 2,900 685 31.0% Others 3,085 337 12
Slide 26: Agenda: Sustainability and ESG Initiatives
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress on the Medium-term Management Plan 4. Initiatives Going Forward and Forecasts for Fiscal 2025 5. Sustainability and ESG Initiatives 6. Appendices 25
Slide 27: Sustainability Plan
Sustainability Plan The unique KPIs to realize a sustainable society Materiality Categories Corresponding SDGs KPIs Targets for 2029 (1) Number of new businesses created 31 in total (2026 target) QOL improvement Brand recognition and loyalty Brand awareness and enthusiasm through innovative Number o
Slide 28: Sustainability and ESG Initiatives
Sustainability and ESG Initiatives Main Initiatives POLA CHEMICAL INDUSTRIES, INC. presented three papers at the 34th Congress of the International Federation of Societies of Cosmetic Chemists (IFSCC), all of which were selected for awards. QOL Winner of the Johann improvement “Mirror skin” generate
Slide 29: Agenda: Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Progress on the Medium-term Management Plan 4. Initiatives Going Forward and Forecasts for Fiscal 2025 5. Sustainability and ESG Initiatives 6. Appendices 28
Slide 30: 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 Medium-term Management Plan, we aim to achieve ROE of at least 10% by 2026 through capital profitability enhanceme
Slide 31: 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% 44,964 (3.4%) Beauty care 39,552
Slide 32: 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% 43,573 (3.6
Slide 33: Beauty Care Business Results for FY2022–FY2024 by Brands
(Appendix) Beauty Care Business Results for FY2022–FY2024 by Brands FY2023–FY2024 FY2022 FY2023 FY2024 YoY Change (mil. yen) Results Results Results Amount % Consolidated net sales 166,307 173,304 170,359 (2,944) (1.7%) Beauty care net sales 161,654 168,477 165,060 (3,417) (2.0%) POLA 96,371 98,499
Slide 34: 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. FY2024 Consol. Net Sales ¥170.3 bil. Overseas Flagship Brands Under Brands Brands Development ¥20,000 High Prestige Price Range ¥10,000 Prestige
Slide 35: 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. cosmetics specialty stores 56% ◼ Leading-edge technology in aging- ¥10,000 ◼ Overseas: Depar
Slide 36: 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