Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — H1 2025 Earnings Presentation
28 slides from Pola Orbis's earnings presentation, 2025
Slide 1: First Half of Fiscal 2025 Supplementary Material
First Half of Fiscal 2025 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 perf
Slide 2: Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 1
Slide 3: Q2 Key Topics
Q2 Key Topics Cosmetics Market ◼ The Japanese cosmetics market grew slightly, as the post-COVID-19 recovery stabilized. ◼ Although the Chinese cosmetics market is influenced by government economic stimulus policies, consumption trends are unclear and require close monitoring. Source: Ministry of Eco
Slide 4: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2024 FY2025 YoY Change (mil. yen) H1 Results H1 Results Amount % Net sales 83,836 83,253 (582) (0.7%) Cost of sales 15,057 15,210 152 1.0% Gross profit 68,778 68,043 (735) (1.1%) SG&A expenses 61,461 59,826 (1,635) (2.7%) Operating in
Slide 5: Consolidated P&L Changes Analysis: Operating Income to Interim Profit
Consolidated P&L Changes Analysis Operating Income to Interim Profit Attributable to Owners of Parent FY2024 FY2025 YoY Change (mil. yen) H1 Results H1 Results Amount % Operating income 7,316 8,217 900 12.3% Non-operating income 3,979 325 (3,653) (91.8%) Non-operating expenses 174 2,260 2,085 - Ordi
Slide 6: Factors Impacting Interim Profit Attributable to Owners of Parent
Factors Impacting Interim Profit Attributable to Owners of Parent Despite an increase in operating income, interim profit attributable to owners of parent decreased by ¥2,856 mil. YoY due to the impact of foreign exchange rates. (mil. yen) Positive impact Negative impact 7,500 968 1,011 90 477 257 2
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 6
Slide 8: Segment Results
Segment Results FY2024 FY2025 YoY Change (mil. yen) H1 Results H1 Results Amount % Consolidated net sales 83,836 83,253 (582) (0.7%) Beauty care 81,322 80,200 (1,121) (1.4%) Real estate 995 1,488 492 49.5% Others 1,518 1,564 46 3.0% Consolidated operating income 7,316 8,217 900 12.3% Beauty care 7,8
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2024 FY2025 YoY Change (mil. yen) H1 Results H1 Results Amount % Beauty care net sales 81,322 80,200 (1,121) (1.4%) POLA 45,966 44,490 (1,476) (3.2%) ORBIS 23,992 24,785 792 3.3% Jurlique 4,100 3,699 (400) (9.8%) Brands under development 7,262 7,225 (37) (0.5
Slide 10: Brand Analysis (1)
Brand Analysis (1) H1 Results Topics ◼ Consignment sales continued to grow at stores on a growth track and the ◼ Our new products received multiple best declining trend in existing customers eased compared to the first quarter. cosmetics awards. ◼ Overseas, the Chinese business saw steady progress i
Slide 11: Brand Analysis (2)
Brand Analysis (2) H1 Results Topics ◼ The strengthening of the customer base progressed due to a ◼ Launched the brand’s first cleansing oil (May), stable increase in existing customers. simultaneously winning the 2025 First Half ◼ In external channels, we maintained a high sales growth rate. Best C
Slide 12: Brand Analysis (3)
Brand Analysis (3) H1 Results Topics ◼ While sales in the second quarter were in line with the same ◼ Launched three skincare products from the period of FY2024 on an AUD basis, the brand continued to Calendula series for sensitive skin (May) struggle in a difficult market environment. ◼ Losses were
Slide 13: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development H1 Results Topics ◼ DECENCIA’s revenue and income both increased as we ◼ Launched a hair care series containing accelerating offline expansion by opening beauty counters essential oils from THREE (April) with a focus on increasing customer contact points.
Slide 14: Initiatives Going Forward
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 13
Slide 15: Initiatives for FY2025 Q3 Onward
Initiatives for FY2025 Q3 Onward ◼ Launch three renewed skincare products (lotion/facial milk/cream) from the premium series, B.A (September). • Use new products as a hook to promote communication with existing customers to stabilize the customer base, and strive for greater brand loyalty and lifeti
Slide 16: Initiatives for FY2025 Q3 Onward
Initiatives for FY2025 Q3 Onward ◼ Continue structural reforms and thorough cost control. ◼ Strengthen proposals for our star products, face oils, and focus on appealing to customers with product benefits and results in an effort to acquire customers through facial skincare products. (Left) Rare Ros
Slide 17: Forecasts for Fiscal 2025
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 16
Slide 18: Forecasts for Fiscal 2025 (Unchanged)
Forecasts for Fiscal 2025 (Unchanged) FY2024 YoY Change FY2025 YoY Change Full-year (mil. yen) Amount % Full-year Plan Amount % Results 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
Slide 19: Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 18
Slide 20: (Appendix) Quarterly Segment Results
(Appendix) Quarterly Segment Results FY2025 Jan.–Mar. FY2025 Apr.–Jun. FY2025 Jul.–Sep. FY2025 Oct.–Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Consolidated net sales 41,313 1.0% 41,940 (2.4%) - - - - Beauty care 39,811 0.7% 40,389 (3.3%) - - - - Real
Slide 21: (Appendix) Quarterly Beauty Care Business Results by Brands
(Appendix) Quarterly Beauty Care Business Results by Brands FY2025 Jan.–Mar. FY2025 Apr.–Jun. FY2025 Jul.–Sep. FY2025 Oct.–Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Beauty care net sales 39,811 0.7% 40,389 (3.3%) - - - - POLA 22,098 (0.3%) 22,391 (5.
Slide 22: (Appendix) 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 23: (Appendix) Sales Results by Channels: POLA and ORBIS
(Appendix) Sales Results by Channels: POLA and ORBIS FY2024 FY2025 YoY Change (mil. yen) H1 Results H1 Results Amount % POLA net sales 45,966 44,490 (1,476) (3.2%) Domestic(1) 38,283 37,935 (347) (0.9%) Consignment sales 27,506 26,430 (1,076) (4.0%) Department store 5,722 5,902 180 3.1% E-commerce 3
Slide 24: (Appendix) About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and six different brands are operated under the Group umbrella. FY2024 Consol. Net Sales ¥170.3 bn. Overseas Flagship Brands Under Brand Brands Development High Prestige Price Range Prestige Middle-tier Beauty care 97%
Slide 25: (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. cosmetics specialty stores 56% ◼ Leading-edge technology in aging- ¥10,000 ◼ Overseas: Depar
Slide 26: (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 Medium-term Management Plan, we aim to achieve ROE of at least 10% by 2026 through capital profitability enhanceme
Slide 27: (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 28: (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 bn. Overseas Net Sales CAGR approx.12% Net Sales CAGR approx. 5% Overseas Sales Ratio 20% Consolidated Operating Income Operating margin 12-13% Consolidated payout r