Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — H1 2021 Earnings Presentation
26 slides from Pola Orbis's earnings presentation, 2021
Slide 1: First Half of Fiscal 2021 Supplementary Material
First Half of Fiscal 2021 Supplementary Material POLA ORBIS HOLDINGS INC. Representative Director and President Satoshi Suzuki This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual perfor
Slide 2: Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 1
Slide 3: Q2 Key Topics
Q2 Key Topics Cosmetics Market ◼ The overall size of the Japanese cosmetics market (including exports) continued to shrink, despite a rebound from the levels of the previous year ◼ Store shutdowns, shortened opening hours and requests to refrain from going out associated with the declaration of a st
Slide 4: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2020 FY2021 YoY Change (mil. yen) H1 Results H1 Results Amount % Consolidated net sales 83,802 89,055 5,253 6.3% Cost of sales 13,567 13,471 (96) (0.7%) Gross profit 70,234 75,584 5,349 7.6% SG&A expenses 64,353 66,488 2,135 3.3% Oper
Slide 5: Consolidated P&L Changes Analysis: Operating Income to Profit
Consolidated P&L Changes Analysis Operating Income to Profit Attributable to Owners of Parent FY2020 FY2021 YoY Change (mil. yen) H1 Results H1 Results Amount % Operating income 5,881 9,095 3,214 54.7% Non-operating income 206 1,487 1,280 619.1% Non-operating expenses 1,544 106 (1,438) (93.1%) Ordin
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent An increase in gross profit, a change in the business structure, and the impact of the exchange rate boosted profit attributable to owners of parent by ¥6,170 million YoY (mil. yen) Positive impact Negative impact 10,000 8,000 1,922 1,685 7,0
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 6
Slide 8: Segment Results
Segment Results FY2020 FY2021 YoY Change (mil yen) H1 Results H1 Results Amount % Consolidated net sales 83,802 89,055 5,253 6.3% Beauty care 81,401 86,819 5,417 6.7% Real estate 1,225 1,053 (172) (14.0%) Others 1,175 1,182 7 0.6% Operating income 5,881 9,095 3,214 54.7% Beauty care 5,290 9,133 3,84
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2020 FY2021 YoY Change (mil. yen) H1 Results H1 Results Amount % Beauty care net sales 81,401 86,819 5,417 6.7% POLA 47,956 53,026 5,070 10.6% ORBIS 22,779 21,986 (793) (3.5%) Jurlique 2,608 3,426 818 31.4% H2O PLUS 405 414 8 2.2% Brands under development 7,6
Slide 10: Brand Analysis (1)
Brand Analysis (1) H1 Result ◼ Consignment sales were revitalized among new customers, with new Topics products and limited-edition kits ◼ Launched a daytime cream that combines Sales of aesthetic treatment recovered, mainly to loyal existing customers, brightening care with UV protection (April) an
Slide 11: Brand Analysis (2)
Brand Analysis (2) H1 Result Topics ◼ A strong performance from high price range products including ORBIS U. and new UV care products ◼ Launched a sunscreen that improves Average product price increased year on year wrinkles and brightens the skin (April) ◼ Progress was made in new mail-order (e-com
Slide 12: Brand Analysis (3) Overseas Brands
Brand Analysis (3) Overseas Brands H1 Result Topics ◼ Jurlique Mainland China focused on building relationships with ◼ Jurlique customers at stores and enhancing LTV in addition to showing Launched a 2021 limited-edition mist (June) continued steady results in e-commerce. ◼ The H2O PLUS amenities bu
Slide 13: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development H1 Result Topics ◼ For THREE, department stores and other offline channels struggled with a decrease in customer traffic due to the declaration of a state of emergency, ◼ Acquired tricot, Inc., which operates the FUJIMI but revenue increased, rebounding fr
Slide 14: Forecasts for Fiscal 2021
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 13
Slide 15: Forecasts for Fiscal 2021 (Unchanged)
Forecasts for Fiscal 2021 (Unchanged) The initial plan remains unchanged, despite reflecting the impact of FUJIMI FY2021 YoY Change FY2021 YoY Change (mil. yen) H1 Results Amount % Full-year Plan Amount % Consol. net sales 89,055 5,253 6.3% 190,000 13,688 7.8% Beauty care 86,819 5,417 6.7% 185,900 1
Slide 16: Forecasts for Fiscal 2021 (Unchanged)
Forecasts for Fiscal 2021 (Unchanged) FY2021 YoY Change FY2021 YoY Change (mil. yen) H1 Results Amount % H2 Plan Amount % Consol. net sales 89,055 5,253 6.3% 100,945 8,435 9.1% Beauty care 86,819 5,417 6.7% 99,081 8,823 9.8% Real estate 1,053 (172) (14.0%) 947 (119) (11.2%) Others 1,182 7 0.6% 917 (
Slide 17: Initiatives Going Forward & Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2021 4. Initiatives Going Forward & Appendices 16
Slide 18: Initiatives for 2021 Q3 onward: Domestic
Initiatives for 2021 Q3 onward Domestic New Existing Potential customers New customers Existing customers Loyal customers Use digital technology to expand customer touchpoints Continuing communication through OMO Enhance brand recognition and swiftly enlist customers Promote repeat purchases by prov
Slide 19: Initiatives for 2021 Q3 onward: Overseas
Initiatives for 2021 Q3 onward Overseas ◼ Expand into duty free stores in Hainan from July and accelerate new store openings in the Chinese duty free market to expand customer touchpoints ⚫ New store opening: CDF Haikou Downtown Duty Free Shop ⚫ Plan for new store openings in Hainan: aim for 4-5 new
Slide 20: Initiatives for 2021 Q3 onward: ORBIS
Initiatives for 2021 Q3 onward ◼ Halt the declining trend in customer number and aim to turn to an increase in annual revenue New customer acquisition is steady. Aim to strengthen customer acquisition for high value- 1 added products and accelerate conversion to recurring customers ➢ Strengthen cust
Slide 21: Initiatives for 2021 Q3 onward: Brands Under Development
Initiatives for 2021 Q3 onward Brands Under Development ◼ Implement radical structural reforms to improve losses across the four brands under ACRO ➢ Review brand operating functions and improve efficiency ➢ Reduce fixed costs and thoroughly enhance cost efficiency to improve the profit structure ➢ P
Slide 22: About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and 10 different cosmetics brands are operated under the Group umbrella FY2020 Consol. Net Sales ¥176.3 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 High Prestige Price Range ¥10,000 Prestige ¥5
Slide 23: Beauty Care Business Brand Portfolio
(Appendix) Beauty Care Business Brand Portfolio Sales ratio* Brand Concept and products Price Main sales channel ◼ High-prestige skincare Approx. ◼ JP: Consignment sales, department stores and e-commerce 60% ◼ Leading-edge technology in aging- ¥10,000 ◼ Overseas: Department stores, directly-operated
Slide 24: Improvement in Capital Efficiency and Shareholder Returns
(Appendix) Improvement in Capital Efficiency and Shareholder Returns Initiatives to Improve Capital Efficiency ROE movement (％) ◼ Operating income CAGR 30% 16.0 14.2 ◼ Achieve net income growth EPS which is higher than operating Target for 2023 (Earnings per share) income growth by decreasing 12.0 1
Slide 25: 2021 – 2023 Medium-term Management Plan
(Appendix) 2021 – 2023 Medium-term Management Plan Management Indicators for 2023 ◼ Consolidated net sales ⇒ ¥215.0 to 225.0 bil. in FY2023 CAGR 7 to 9％ ◼ Overseas sales ratio ⇒ 20 to 25% in FY2023 (15% in FY2020) Net Sales CAGR 20 to 25％ ◼ Domestic e-commerce sales ratio ⇒ 30% in FY2023 (24% in FY2
Slide 26: Beauty Care Business Results for FY2018 – FY2020 by Brands
(Appendix) Beauty Care Business Results for FY2018 – FY2020 by Brands FY2018 FY2019 FY2020 2019 vs 2020 YoY Change (mil. yen) Results Results Results Amount % Consolidated net sales 248,574 219,920 176,311 (43,609) (19.8%) Beauty care net sales 231,207 214,886 171,658 (43,228) (20.1%) POLA 150,183 1