Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — H1 2017 Earnings Presentation
24 slides from Pola Orbis's earnings presentation, 2017
Slide 1: First Half of Fiscal 2017 Supplementary Material
First Half of Fiscal 2017 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: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2017 4. Initiatives Going Forward & Appendices 1
Slide 3: Q2 Key Topics
Q2 Key Topics Cosmetics Market Japanese cosmetic market overall showed steady growth. However, pure domestic market, excluding inbound seemed to be flat or declined slightly.* By price range, high prestige remained steady. By channel, drugstores, department stores and online channels grew. As
Slide 4: Analysis of Consolidated P&L Changes: Net Sales to Operating Income
Analysis of Consolidated P&L Changes Net Sales to Operating Income FY2016 FY2017 YoY Change (mil. yen) H1 Results H1 Results Amount % Consolidated net sales 106,957 117,378 10,420 9.7% Cost of sales 20,121 18,925 (1,195) (5.9%) Gross profit 86,836 98,452 11,616 13.4% SG&A* expenses 74,685 77,507 2,8
Slide 5: Analysis of Consolidated P&L Changes: Operating Income to Profit
Analysis of Consolidated P&L Changes Operating Income to Profit Attributable to Owners of Parent FY2016 FY2017 YoY (mil. yen) H1 Results H1 Results Amount % Operating income 12,150 20,944 8,794 72.4% Non-operating income 229 228 0 (0.3%) Non-operating expenses 1,121 229 (892) (79.5%) Ordinary income
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent Profit attributable to owners of parent was up 68.9% yoy due to increase in gross margin and improvement in profit structure Positive impact Negative impact (mil. yen) 22,000 Increase in sales at Difference due to extraordinary POLA brand inc
Slide 7: Agenda: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2017 4. Initiatives Going Forward & Appendices 6
Slide 8: Segment Results
Segment Results FY2016 FY2017 YoY (mil yen) H1 Results H1 Results Amount % Consolidated net sales 106,957 117,378 10,420 9.7% Beauty care 99,343 109,303 9,959 10.0% Real estate 1,517 1,348 (169) (11.1%) Others 6,096 6,726 630 10.3% Operating income 12,150 20,944 8,794 72.4% Beauty care 12,080 20,095
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2016 FY2017 YoY (mil. yen) H1 Results H1 Results Amount % Beauty care net sales 99,343 109,303 9,959 10.0% POLA 56,760 69,538 12,778 22.5% ORBIS 28,215 26,681 (1,533) (5.4%) Jurlique 5,914 5,084 (829) (14.0%) H2O PLUS 1,242 1,119 (123) (9.9%) Brands under 7,2
Slide 10: Brand Analysis (1)
Brand Analysis (1) H1 Result Topics Successful customer acquisition through Wrinkle Introduced a sheet mask and Shot led to cross-selling and repeat purchases. Inner Lock drink in WHITE SHOT It also encouraged increases in the number of series. (May 1st) customers and purchase per customer. Pr
Slide 11: Sales Progress of POLA Wrinkle Shot Serum
Sales Progress of POLA Wrinkle Shot Serum Sales progress above the revised target of ¥12.5bn, contributing to customer acquisition Jan–Jun YTD Sales: Approximately 620,000 units, ¥8.7 billion (+9% compared to the revised target / more than +30% compared to the initial target) Sales progress Cust
Slide 12: Brand Analysis (2)
Brand Analysis (2) H1 Result Topics Sales decreased due to the down trend in the number Launched seasonal products and of customers in spite of skincare-focused campaigns. men’s skincare series. Operating income dropped due to decrease in gross Started mail-posting delivery service margin. P
Slide 13: Brand Analysis (3)
Brand Analysis (3) H1 Result Topics Sales dropped by 17% YoY (on AUD basis). Implemented new marketing strategy which was Jurlique struggled due to weakened brand reformed last year. presence and decrease in the number of tourists, Introduced a customer nurturing program utilizing mainly in
Slide 14: Brand Analysis (4)
Brand Analysis (4) H1 Result Topics Sales decreased because of the sales from initial Ran a product-linked campaign to shipments of revamped products recorded in June raise brand recognition and reinforce last year and delay in shipment schedules. skincare products. Operating income improved i
Slide 15: Brand Analysis (5) Brands Under Development
Brand Analysis (5) Brands Under Development H1 Result Topics Overall sales decreased yoy due to sales of FL THREE and pdc brands last year. Like-for-like sales grew - Entered into Korea in April by 24.9% excluding the two brands. - Won best cosmetic awards (Left) Angelic Complexion Primer At T
Slide 16: Agenda: Forecasts for Fiscal 2017
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2017 4. Initiatives Going Forward & Appendices 15
Slide 17: Forecasts for FY2017 (Revised)
Forecasts for FY2017 (Revised) Both consolidated sales and OP are revised upwardly by ¥3.0 bn each to reflect recent performance vs. May 1 YoY Change 2017 Full-year vs. May 1 YoY Change H1 Results (mil. yen) Forecast Amount % Forecast Forecast Amount % Consol. net sales 117,378 2,378 10,420 9.7% 236
Slide 18: Agenda: Initiatives Going Forward & Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2017 4. Initiatives Going Forward & Appendices 17
Slide 19: Initiatives for 2017 Q3 Onward
Initiatives for 2017 Q3 Onward Sustain stable growth of flagship brands to lead Group earnings Launch new products from existing and new series in 2H. Introduce a cream that presents new value of cosmetics (October 6th). It utilizes a research approaching a relationship between sagging and subcuta
Slide 20: Appendix: About POLA ORBIS Group
Appendix : About POLA ORBIS Group Beauty care is the core business of the Group, and 7 different cosmetic brands are operated under the Group umbrella FY2016 Consol. Net Sales ¥218.4 bil. Overseas Flagship Brands under Brands Brands development ¥20,000 High Prestige Price Range ¥10,000 Prestige ¥5,0
Slide 21: Appendix: Beauty Care Business Brand Portfolio
Appendix : Beauty Care Business Brand Portfolio Sales Brand Concept and products Price Sales channel ratio* Consignment sales through High-prestige skincare Approx. Beauty Directors： 57% Leading-edge technology in ¥10,000 POLA THE BEAUTY (PB), anti-aging and skin-whitening Esthe-inn and conven
Slide 22: Appendix: Beauty Care Business Results for FY2014-FY2016 by Brands
Appendix : Beauty Care Business Results for FY2014 – FY2016 by Brands FY2014 FY2015 FY2016 2015 vs 2016 YoY Change (mil. yen) Results Results Results Amount % Consolidated net sales 198,094 214,788 218,482 3,693 1.7% Beauty care net sales 184,475 200,570 202,446 1,875 0.9% POLA 99,571 109,352 116,12
Slide 23: Appendix: Long-term Vision
Appendix : Long-term Vision STAGE3 Become a highly profitable global enterprise Consolidated Net sales STAGE2 Goals for FY2020: •Consol. net sales: ¥250.0 bil. or higher (bil. yen) Further strengthen domestic •Overseas sales ratio: 20% or higher STAGE1 earnings structure and •Operating margin: 13-15
Slide 24: Appendix: 2017-2020 Medium-term Management Plan
Appendix : 2017 – 2020 Medium-term Management Plan The final stage of the long-term vision for 2020. Aim to improve profitability in Japan, promote a solid shift toward overall profitability from overseas operations and build a brand structure for next-generation growth. Consolidated net sales Capit