Pola Orbis Holdings Inc. · TSE:4927

Pola Orbis — Q3 2025 Earnings Presentation

28 slides from Pola Orbis's earnings presentation

  1. Slide 1: Third Quarter of Fiscal 2025 Supplementary Material

    Third Quarter of Fiscal 2025 Supplementary Material POLA ORBIS HOLDINGS INC. Director and Vice President Finance, Legal, Administration and IR Naoki Kume This report contains projections of performance and other projections based on information currently available and certain assumptions judged to b

  2. Slide 2: Agenda

    1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 1

  3. Slide 3: Q3 Key Topics

    Q3 Key Topics Cosmetics Market  The post-COVID-19 recovery of the Japanese cosmetics market plateaued.  Despite government economic stimulus policies influence, the outlook for the Chinese cosmetics market remains uncertain, requiring close monitoring of consumption trends. Source: Ministry of Eco

  4. 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) Q3 Results (YTD) Q3 Results (YTD) Amount % Net sales 125,395 125,002 (392) (0.3%) Cost of sales 22,803 23,130 327 1.4% Gross profit 102,592 101,871 (720) (0.7%) SG&A expenses 91,774 89,919 (1,854) (2.

  5. 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 FY2024 FY2025 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Operating income 10,817 11,952 1,134 10.5% Non-operating income 1,142 623 (518) (45.4%) Non-operating expenses 234 1,350 1,116

  6. Slide 6: Factors Impacting Profit Attributable to Owners of Parent

    Factors Impacting Profit Attributable to Owners of Parent Operating income increased due to lower SG&A expenses, with profit attributable to owners of the parent up ¥703 million YoY. (mil. yen) Positive impact Negative impact 7,652 1,124 6,948 1,634 1,287 331 1,753 321 549 398 225 FY2024 Q3 Decrease

  7. Slide 7: Segment Analysis

    1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 6 Continuing on, here is the status of the segments. See page seven, results by segment.

  8. Slide 8: Segment Results

    Segment Results FY2024 FY2025 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Consolidated net sales 125,395 125,002 (392) (0.3%) Beauty care 121,487 120,411 (1,076) (0.9%) Real estate 1,577 2,238 661 42.0% Others 2,330 2,352 21 0.9% Consolidated operating income 10,817 11,952 1,134

  9. Slide 9: Beauty Care Business Results by Brands

    Beauty Care Business Results by Brands FY2024 FY2025 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % Beauty care net sales 121,487 120,411 (1,076) (0.9%) POLA 68,333 65,997 (2,336) (3.4%) ORBIS 35,838 37,508 1,669 4.7% Jurlique 6,014 5,604 (410) (6.8%) Brands under development 11,30

  10. Slide 10: Brand Analysis (1)

    Brand Analysis (1) Q3 Results (YTD) Topics  We focused on communications with existing customers, primarily  Launched three renewed skincare products through new B.A products, and sales to existing customers in Japan (lotion/facial milk/cream) from the premium turned to increase in Q3 (Jul.–Sep.)

  11. Slide 11: Brand Analysis (2)

    Brand Analysis (2) Q3 Results (YTD) Topics  Investment in sales promotion, primarily focused on the  Launched renewed wrinkle-improving and cleansing oil, drove skincare sales growth and boosted both skin-brightening serum product (August) revenue and income.  In the direct selling channel, cross

  12. Slide 12: Brand Analysis (3)

    Brand Analysis (3) Q3 Results (YTD) Topics  Initiatives such as our 40th anniversary project drove Q3  Launched a limited-edition product using revenue growth (Jul.–Sep.) on an AUD basis. our original rose developed to celebrate  We continued with our structural reforms and cost control the 40th

  13. Slide 13: Brand Analysis (4) Brands Under Development

    Brand Analysis (4) Brands Under Development Q3 Results (YTD) Topics  DECENCIA’s revenue and income both decreased, but we  THREE relaunched fragrances blended with invested with a focus on improving customer acquisition efficiency. its original essential oils (August)  THREE focused on holistic c

  14. 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 I will skip the explanation on initiatives going forward for each brand on pages 14 and 15.

  15. Slide 15: Initiatives for FY2025 Q4 Onward

    Initiatives for FY2025 Q4 Onward  Focus on expanding sales of the renewed B.A series, promote customer purchases, and strive to increase lifetime value (LTV). • Leveraging customer lists to tailor approaches based on customer attributes and purchase histories. • Proactive promotions for the peak au

  16. Slide 16: Initiatives for FY2025 Q4 Onward

    Initiatives for FY2025 Q4 Onward  Continue to carry out structural reforms and implement thorough cost control.  Launch holiday kit centering on the brand’s star product, face oil for the year-end sales (November). Holiday kit Brands Under Development  Improve retention rates and LTV by leveragin

  17. 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

  18. 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

  19. Slide 19: Appendices

    1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 18

  20. 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%) 41,748 0.5% - - Beauty care 39,811 0.7% 40,389 (3.3%) 40,21

  21. 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%) 40,210 0.1% - - POLA 22,098 (0.3%) 22

  22. 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

  23. Slide 23: (Appendix) Sales Results by Channels: POLA and ORBIS

    (Appendix) Sales Results by Channels: POLA and ORBIS FY2024 FY2025 YoY Change (mil. yen) Q3 Results (YTD) Q3 Results (YTD) Amount % POLA net sales 68,333 65,997 (2,336) (3.4%) Domestic(1) 57,590 56,851 (738) (1.3%) Consignment sales 41,367 39,435 (1,932) (4.7%) Department store 8,527 8,745 219 2.5%

  24. 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%

  25. 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

  26. 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

  27. 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

  28. 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

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