Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q1 2023 Earnings Presentation
26 slides from Pola Orbis's earnings presentation, Mar 31, 2020
Slide 1: First Quarter of Fiscal 2023 Supplementary Material
First Quarter of Fiscal 2023 Supplementary Material POLA ORBIS HOLDINGS INC. Corporate Officer PR, IR, CSR and Sustainability Naotaka Hashi • This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable
Slide 2: Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2023 4. Initiatives Going Forward & Appendices 1
Slide 3: Q1 Key Topics
Q1 Key Topics Cosmetics Market ◼ The scale of the Japanese cosmetics market (including exports) as a whole was in a recovery trend. ◼ In the Japanese market, except for inbound demand, with signs of an upturn in personal consumption due to factors such as an increase in opportunities to go out, in a
Slide 4: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2022 FY2023 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Consolidated net sales 37,662 42,136 4,473 11.9% Cost of sales 6,816 7,748 931 13.7% Gross profit 30,845 34,387 3,542 11.5% SG&A expenses 28,933 29,838 904 3.1% Operatin
Slide 5: Consolidated P&L Changes Analysis: Operating Income to Profit Attributable to Owners of Parent
Consolidated P&L Changes Analysis Operating Income to Profit Attributable to Owners of Parent FY2022 FY2023 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Operating income 1,912 4,549 2,637 137.9% Non-operating income 2,314 385 (1,929) (83.3%) Non-operating expenses 86 103 16 19.3% Ordinary in
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent Despite an increase in gross profit due to higher revenue, profit attributable to owners of parent declined by ¥4,437 mil. YoY due to a decrease in foreign exchange gain and the rebound of the reduction in income taxes, etc. in the same perio
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2023 4. Initiatives Going Forward & Appendices 6
Slide 8: Segment Results
Segment Results FY2022 FY2023 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Consolidated net sales 37,662 42,136 4,473 11.9% Beauty care 36,516 40,950 4,433 12.1% Real estate 523 518 (4) (0.9%) Others 622 666 44 7.1% Operating income 1,912 4,549 2,637 137.9% Beauty care 2,026 4,359 2,332 115.
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2022 FY2023 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Beauty care net sales 36,516 40,950 4,433 12.1% POLA 21,229 24,183 2,954 13.9% ORBIS 9,340 9,977 637 6.8% Jurlique 1,925 1,908 (16) (0.9%) Brands under development 3,682 4,217 535 14.5% Beauty c
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q1 Result Topics ◼ For domestic, used stronger online advertising and social media ◼ Launched a serum containing protein from presence for aesthetic treatment, and new products as hooks to encourage customers to visit stores, and more actively promoted offline the WRINKLE SHOT ser
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q1 Result Topics ◼ Sales of ORBIS U. and UV special care product grew, new ◼ Launched a genuine aging care series customer acquisition progressed, and the number of direct for the senior generation and a renewed selling customers exceeded last year’s level. UV protector that impro
Slide 12: Brand Analysis (3)
Brand Analysis (3) Q1 Result Topics ◼ Retail sales in mainland China increased YoY, although ◼ Launched limited-edition body oil affected by COVID-19 in January, as Jurlique strengthened (January) its product offerings and cross-selling pivoting on cosmetic oil from February onward. ◼ Revenue increa
Slide 13: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development Q1 Result Topics ◼ Ameliorated losses in brands under development. ◼ Launched the renewed THREE ◼ THREE focused on product recognition and creating Balancing series (February) brand experience opportunities for the launch of the main skincare series, and d
Slide 14: Forecasts for Fiscal 2023
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2023 4. Initiatives Going Forward & Appendices 13
Slide 15: Forecasts for Fiscal 2023 (Unchanged)
Forecasts for Fiscal 2023 (Unchanged) YoY Change FY2022 FY2023 YoY Change (same-standard basis*) (mil. yen) Full-year Results Amount % Full-year plan Amount % Consol. net sales 166,307 (8,588) (4.9%) 180,000 13,692 8.2% Beauty care 161,654 (8,749) (5.1%) 175,500 13,845 8.6% Real estate 2,083 (29) (1
Slide 16: Initiatives Going Forward & Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2023 4. Initiatives Going Forward & Appendices 15
Slide 17: Initiatives for FY2023 Q2 Onward
Initiatives for FY2023 Q2 Onward Domestic Business ◼ Standardize customer IDs in the domestic businesses and launched the POLA Premium Pass (April). • Enhance customer experience value through increased convenience as well as customer service tailored to each individual. • Direct e-commerce customer
Slide 18: Initiatives for FY2023 Q2 Onward
Initiatives for FY2023 Q2 Onward ◼ With cosmetic oil performing well in mainland China, promote brand entry through promotions pivoting on star products. ◼ Continue to acquire and retain customers for face care products in Australia and Hong Kong, while also strengthening the acquisition of tourist
Slide 19: (Appendix) Quarterly Segment Results
(Appendix) Quarterly Segment Results ◼ Net sales FY2023 Jan.-Mar. FY2023 Apr.-Jun. FY2023 Jul.-Sep. FY2023 Oct.-Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Consolidated net sales 42,136 11.9% - - - - - - Beauty care 40,950 12.1% - - - - - - Real estate
Slide 20: (Appendix) Quarterly Results by Brands
(Appendix) Quarterly Results by Brands ◼ Net sales FY2023 Jan.-Mar. FY2023 Apr.-Jun. FY2023 Jul.-Sep. FY2023 Oct.-Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Beauty care net sales 40,950 12.1% - - - - - - POLA 24,183 13.9% - - - - - - ORBIS 9,977 6.8%
Slide 21: (Appendix) ORBIS Comparison of Classifications for Disclosure
(Appendix) ORBIS Comparison of Classifications for Disclosure Purpose and content of the change ◼ Purpose • Our brand policy is to aim to provide seamless customer experiences across sales channels through OMO, and we have reorganized our classifications for disclosure to show structural changes in
Slide 22: (Appendix) About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and nine different cosmetics brands are operated under the Group umbrella. FY2022 Consol. Net Sales ¥166.3 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 * * High Prestige Price Range ¥10,000 Pres
Slide 23: (Appendix) 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: (Appendix) 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 25% (％) or higher Mid-term 16.0 14.2 ◼ Achieve net income growth Management Plan EPS which is higher than operating Indicator for 2023 (Earnings per sha
Slide 25: (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 26: (Appendix) Beauty Care Business Results for FY2021 – FY2022 by Brands
(Appendix) Beauty Care Business Results for FY2021 – FY2022 by Brands FY2021 - FY2022 FY2021 FY2021 FY2022 YoY Change Results (mil. yen) Results (recalculated under the Results Amount % 2022 standard) Consolidated net sales 178,642 174,896 166,307 (8,588) (4.9%) Beauty care net sales 174,150 170,403