Milbon Co., Ltd. · TSE:4919
Milbon — Q2 2022 Earnings Presentation
34 slides from Milbon's earnings presentation, Aug 10, 2022
Slide 1: FY2022 Second Quarter Financial Results Presentation Materials
Milbon Co., Ltd. FY2022 Second Quarter (January 1, 2022 – June30, 2022) Financial Results Presentation Materials August 10, 2022 © 2022 Milbon Co., Ltd. 0
Slide 2: Table of Contents
Table of Contents P4 Consolidated Operating Results P5 Consolidated Sales by Product Category P15 Consolidated Statement of Earnings P16 Consolidated Trends in Capital Expenditures and R&D Expenses P17 Trends in Fieldpersons (FPs), Market Related Data P18 Consolidated Net Sales in Japan and Overseas
Slide 3: NOTE: Addition of Sales Deduction Items
NOTE :Addition of Sales Deduction Items Previously, sales discounts for cash payment were treated as financial expenses (non-operating expenses) from the viewpoint of materiality. However, in light of recent interest rate conditions, such expenses will be treated in the same manner as rebates, and f
Slide 4: Milbon Group Financial Results for FY2022 Second Quarter
Milbon Group Financial Results for FY2022 (63 rd Term) Second Quarter Masahiro Murai, Managing Executive Director © 2022 Milbon Co., Ltd. 3
Slide 5: Consolidated Operating Results (FY2022 6 months)
Consolidated Operating Results (FY2022 6 months) In Japan, sales increased due to recovery compared to the first quarter when the spread of COVID-19 in rural areas affected the flow of people, the trend of multi-tonal hair coloring, and growing hair care needs in response to the popularity of hair
Slide 6: Consolidated Sales by Product Category [Hair Care Products (1)]
Consolidated Sales by Product Category [Hair Care Products (1)] Consolidated Net Sales (FY2022 6 months) (Unit: million yen) FY2021 FY2022 Increase/ Increase/ 6 months 6 months Decrease Decrease ratio (%) Reference*1 11,087 12,218 1,130 10.2 • Premium brands grew strong by 13.4% YoY. For Aujua, over
Slide 7: Hair Care Products (2): New Products FY2022 6 months
Consolidated Sales by Product Category [Hair Care Products (2)] New Products FY2022 6 months Aujua Climatic Care Series Exshield Line A new line of Climatic Care Series that removes particle pollution*1 and prevents it from sticking to hair, leading to a lustrous look. (Unit: million yen) FY2022 FY2
Slide 8: A Premium Brand, Aujua
A Premium Brand, Aujua Sales grew steadily due to the growth of the existing lines, although the introduction of new products was sluggish. Number of Salons*1 (Unit: salons) Increase/ Increase/ FY2021*2 FY2022 Decrease Decrease ratio (%) 5,200 5,626 426 8.2 Consolidated Gross Sales (FY2022 6 months)
Slide 9: A Premium Brand, Global Milbon
A Premium Brand, Global Milbon Premium Position Enhancing Vivacity, the new line of scalp care, started strong. Number of Salons*1 (Unit: salons) Increase/ Increase/ FY2021 FY2022 Decrease Decrease ratio (%) 14,575 17,209 2,634 18.1 Consolidated Gross Sales (FY2022 6 months) (Unit: million yen) FY20
Slide 10: Consolidated Sales by Product Category [Hair Coloring Products (1)]
Consolidated Sales by Product Category [Hair Coloring Products (1)] Consolidated Net Sales (FY2022 6 months) (Unit: million yen) FY2021 FY2022 Increase/ Increase/ 6 months 6 months Decrease Decrease ratio (%) Reference*1 6,999 8,148 1,148 16.4 • Multi-tonal hair coloring, using hair bleaching items,
Slide 11: Hair Coloring Products (2)
Consolidated Sales by Product Category [Hair Coloring Products (2)] Core Product FY2022 6 months Ordeve Addicthy Erases red-tinged brown with high saturation blue. With clear and transparent color expression, it lets customers freely realize individual hair color designs. (Unit: million yen) FY2021
Slide 12: A Premium Organic Brand, Villa Lodola (1)
A Premium Organic Brand, Villa Lodola (1) Sales grew steadily due to salon strategy activities in collaboration with distributors. Number of Salons (Unit: salons) Increase/ Increase/ FY2021 FY2022 Decrease Decrease ratio (%) 11,317 11,878 561 5.0 Consolidated Gross Sales (FY2022 6 months) (Unit: mil
Slide 13: Hair Coloring Products (2)
Consolidated Sales by Product Category [Hair Coloring Products (2)] Core Product FY2022 6 months Villa Lodola Color With 92% naturally derived ingredients, the product’s formulation utilizes the power of plants. It enables consumers to experience the comfort of an organic product across all aspects
Slide 14: Consolidated Sales by Product Category [Cosmetic Products (1)]
Consolidated Sales by Product Category [Cosmetic Products (1)] Consolidated Net Sales (FY2022 6 months) (Unit: million yen) FY2021 FY2022 Increase/ Increase/ 6 months 6 months Decrease Decrease ratio (%) Reference*1 293 262 (31) (10.7) • Sales declined YoY due to limited referral activities such as
Slide 15: A Premium Brand, iMPREA
A Premium Brand, iMPREA Sales declined because the introduction of new products and season promotion struggled. Number of Salons*1 (Unit: salons) Increase/ Increase/ FY2021 FY2022 Decrease Decrease ratio (%) 1,104 1,218 114 10.3 Consolidated Gross Sales (FY2022 6 months) (Unit: million yen) FY2021 F
Slide 16: Consolidated Statement of Earnings
Consolidated Statement of Earnings <Consolidated Statement of Earnings> (Unit: million yen) <Breakdown of Net Sales by Product Category> (Unit: million yen) FY2021 FY2021 FY2022 Increase/ Increase/ % to FY2022 % to 6 months 6 months % to sales Decrease Decrease 6 months Reference* ratio (%) sales 6
Slide 17: Consolidated Trends in Capital Expenditures and R&D Expenses
Consolidated Trends in Capital Expenditures and R&D Expenses (Unit: million yen) FY2022 FY2022 Category FY2018 FY2019 FY2020 FY2021 Jan.-Jun. Plan Capital expenditures 1,149 1,605 1,917 4,644 1,083 5,080 Depreciation and amortization 1,370 1,453 1,562 1,777 988 2,296 Amount 1,479 1,534 1,581 1,741 9
Slide 18: Trends in Fieldpersons (FPs), Market Related Data
Trends in Fieldpersons (FPs), Market Related Data Fieldpersons Trends (by Country) (Number of FPs / As of January 1, the beginning of the fiscal year) 2018 2019 2020 2021 2022 JAPAN 269 279 297 328 333 Upper column: Number of FPs (persons) Lower column: Sales per FP (million yen) 111 108 100 102 - U
Slide 19: Consolidated Net Sales in Japan and Overseas
Consolidated Net Sales in Japan and Overseas FY2022 6 months (Unit: million yen) Increase/ FY2021 FY2022 Changes in local Decrease 6 months Reference*1 6 months Increase/ currency base*2 ratio Decrease Net sales % to sales Net sales % to sales (%) (%) Consolidated net sales 19,217 100.0 21,467 100.0
Slide 20: Consolidated Operating Income in Japan and Overseas
Consolidated Operating Income in Japan and Overseas FY2022 6 months (Unit: million yen) FY2021 FY2022 Increase/ 6 months Reference*1 6 months Increase/ Decrease ratio Operating Operating Operating Operating Decrease (%) income income ratio(%) income income ratio(%) Consolidated operating income 3,31
Slide 21: Outlook of Overseas Subsidiaries (1)
Outlook of Overseas Subsidiaries (1) USA (Milbon USA) • Sales increased 29.7% YoY due to continued strong collaboration with distributors, including actively visiting salons and developing hair coloring trainers. • Targeting salons that carry Global Milbon, which has a high product reputation, the C
Slide 22: Outlook of Overseas Subsidiaries (2)
Outlook of Overseas Subsidiaries (2) KOREA (Milbon Korea) • As a result of the early holding of offline seminars in anticipation of the deregulation of 韓国 COVID-19 and proactive educational activities for salons, sales increased 23.4% YoY on significant growth, especially in mainstay hair coloring p
Slide 23: <Appendix> Hair Care Brand Positioning Map
<Appendix> Hair Care Brand Positioning Map Premium Brands Professional Brands © 2022 Milbon Co., Ltd. 22
Slide 24: Milbon Group Progress in FY2022 (63rd Term)
Milbon Group Progress in FY2022 (63 rd Term) Ryuji Sato, Representative Director, President and CEO © 2021 MILBON Co., Ltd. 23
Slide 25: Topics in the First Half ①
To p i c s i n t h e F i r s t H a l f ① ⇒ The impact is not ①Hikes in raw material prices significant at this time ・ Difference between public market and professional-use market ・Large ratio of cost to sales ・Pricing by high-value-added product price (raw materials/labor) ・Difficult to compete on p
Slide 26: Topics in the First Half ②
To p i c s i n t h e F i r s t H a l f ② ⇒Showed strenuous efforts ②Zero-COVID policy in China under difficult circumstances ・ Shanghai lockdown for about 2 months ⇒Sales declined by 15.0% in local currency terms. (3.0% decrease in yen terms) ・ The impact of the Zero-COVID Policy is still uncertain.
Slide 27: Domestic Market①: Hair Coloring Products
Domestic Market①:Hair Coloring Products In Japan, hair coloring products sales grew s i g n i f i c a n t l y i n t h e f i r s t h a l f ( + 1 3 . 3 % Yo Y ) Trend Products Wearing masks Ordeve diversifies Addicthy hair color trends The popularity of hair bleaching More stylists among a wide create
Slide 28: Domestic Market②: Hair Care Products
Domestic Market②:Hair Care Products Domestic sales of hair care products increased 6.5% Yo Y d u e t o s t r o n g s a l e s o f p r e m i u m b r a n d s r e s p o n d i n g to growing hair care needs Sales amounts and composition of Premium Brands ・ Hair care needs against the in hair care product
Slide 29: Domestic Market③: Progress in Beauty Platform Plan
Domestic Market③:Progress in Beauty Platform Plan Preparations for the strategies outlined in the Mid-term M a n a g e m e n t P l a n a r e s t e a d i l y u n d e r w a y. T h e " m i l b o n : i D " that supports them is expanding at a brisk pace. Smart Salon Strategy Lifetime Beauty Care Strateg
Slide 30: Overseas Market
Overseas Market Building a global logistics system in parallel with business expansion through new initiatives in each region The Korean version of Steady business expansion the milbon:iD will be in North America launched in August Sales began in Canada in April Established an overseas Production of
Slide 31: Progress in Sustainability Commitment
Progress in Sustainability Commitment Actively promoting the sustainability commitment Hair color tube cap Acquired RSPO Sustainable (ENOG) downsizing to Supply Chain Cosmetic reduce plastic usage Certification at Award 2021 ・54% reduction from conventional Yumegaoka Plant Jury's Award: “Villa Lodol
Slide 32: Full-year Operating Forecast
Full-year Operating Forecast The full-year operating forecast remains unchanged due to uncertainties such as soaring raw material prices and COVID-19. (Revisions to the operating forecast will be considered in light of future conditions.) FY2021 Increase / FY2021 FY2022 FY2022 Increase / FY2022 2Q F
Slide 33: Return to Shareholders
Return to Shareholders The interim dividend will be 40 yen per share, an i n c r e a s e o f 1 0 y e n f r o m t h e p r e v i o u s y e a r. Excluding the effect of the weaker yen, the dividend payout ratio is close to the 50% target set in the Mid- term Management Plan. FY2022 FY2022 2Q FY2020 FY2
Slide 34: Forward-looking statements notice
With respect to the business forecasts included in this document, any statement that is not historical fact is a forward-looking statement based on information available and certain premises that are judged to be rational at the time of the announcement. Please be aware that actual results may diffe