Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — H1 2013 Earnings Presentation
24 slides from Pola Orbis's earnings presentation, 2013
Slide 1: Conference Presentation for Financial Results: First Half of Fiscal 2013
Conference Presentation for Financial Results: First Half of Fiscal 2013 Satoshi Suzuki President POLA ORBIS HOLDINGS INC. This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual performanc
Slide 2: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis and Progress of Key Strategies 3. Impact of Integration of the Production Structure 4. Forecasts for Fiscal 2013 5. Initiatives for the Second Half Onward 2
Slide 3: 1. Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis and Progress of Key Strategies 3. Impact of Integration of the Production Structure 4. Forecasts for Fiscal 2013 5. Initiatives for the Second Half Onward 3
Slide 4: Overview of the First Half of Fiscal 2013
Overview of the First Half of Fiscal 2013 Net sales exceeded the forecast with the positive impact of weaker yen. Operating income also exceeded the forecast, mainly due to the improved SG&A efficiency at flagship brands. Consolidated Performance Net sales ¥91,415 mil. (+5.8% YoY) Operating income ¥
Slide 5: Highlights of Consolidated Performance
Highlights of Consolidated Performance Compared with FY2012 FY2013 YoY Forecasts (Millions of yen) 1H Results 1H Results Amount % Amount % Net Sales 86,407 91,415 5,008 5.8% 1,4515 1.6% Cost of Sales 17,744 18,281 536 3.0% 681 3.9% Gross Profit 68,662 73,134 4,472 6.5% 734 1.0% Selling, General and
Slide 6: Analysis of Consolidated P&L Changes: Net Sales to Operating Income
Analysis of Consolidated P&L Changes Net Sales to Operating Income Compared with FY2012 FY2013 YoY Forecasts (Millions of yen) 1H Results 1H Results Amount % Amount % Net Sales 86,407 91,415 5,008 5.8% 1,415 1.6% Cost of Sales 17,744 18,281 536 3.0% 681 3.9% Gross Profit 68,662 73,134 4,472 6.5% 734
Slide 7: Analysis of Consolidated P&L Changes: Operating Income to Net Income
Analysis of Consolidated P&L Changes Operating Income to Net Income Compared with FY2012 FY2013 YoY Forecasts 1H Results 1H Results Amount % Amount % (Millions of yen) Operating Income 5,652 6,305 653 11.6% 405 6.9% Non-operating Income 431 1,080 649 150.5% 780 260.2% Non-operating Expenses 75 50 -2
Slide 8: Factors Impacting Net Income
Factors Impacting Net Income (Millions of yen) Positive Impact Negative Impact 10,000 -¥1,156 mil. -¥843 mil. 9,000 Impact of -¥728 mil. Increased promotion expansion of ・Increased sales at expenses accompanied overseas brands with store openings of POLA 8,000 ・New store overseas brands openings of
Slide 9: 2. Segment Analysis and Progress of Key Strategies
1. Highlights of Consolidated Performance 2. Segment Analysis and Progress of Key Strategies 3. Impact of Integration of the Production Structure 4. Forecasts for Fiscal 2013 5. Initiatives for the Second Half Onward 9
Slide 10: Operating Results by Segment
Operating Results by Segment Compared with FY2012 FY2013 YoY Forecasts (Millions of yen) 1H Results 1H Results Amount % Amount % Consolidated Net Sales 86,407 91,415 5,008 5.8% 1,415 1.6% Beauty Care 80,691 85,336 4,644 5.8% 1,236 1.5% Real Estate 1,444 1,493 49 3.4% 93 6.7% Others 4,271 4,586 314 7
Slide 11: Beauty Care Segment Operating Results by Product Type
Beauty Care Segment Operating Results by Product Type FY2012 FY2013 YoY Change (Millions of yen) 1H Results 1H Results Amount % Net Sales 80,691 85,336 4,644 5.8% Cosmetics 74,645 79,468 4,822 6.5% Fashion 6,046 5,867 -178 -3.0% Operating income 4,887 5,703 816 16.7% Cosmetics 5,028 5,788 760 15.1%
Slide 12: Beauty Care Segment Operating Results by Brand
Beauty Care Segment Operating Results by Brand FY2012 FY2013 YoY Change (Millions of yen) 1H Results 1H Results Amount % Net Sales 80,691 85,336 4,644 5.8% POLA 48,069 48,888 819 1.7% ORBIS 23,655 23,647 -7 -0.0% Brands under development 3,903 4,090 186 4.8% Overseas brands (Jurlique and H2O+) 5,063
Slide 13: Real Estate/Others Segment Results
Real Estate/Others Segment Results FY2012 FY2013 YoY Change (Millions of yen) 1H Results 1H Results Amount % Real Estate Net Sales 1,444 1,493 49 3.4% Operating Income 627 645 17 2.8% ◆ Thanks to successful sales efforts to maintain rent level and attract new tenants, both net sales and operating in
Slide 14: Progress with Key Strategies During the First Half (1)
Progress with Key Strategies During the First Half (1) 1 － Generate stable profits with flagship brands ◆ B.A THE DAY MASK S launched in May, is showing strong performance. Product ◆ Thanks to successful campaigns, WHITE SHOT series performed well. ◆ Number of PB stores rose by 12 to 584 since Dec.
Slide 15: Progress with Key Strategies During the First Half (2)
Progress with Key Strategies During the First Half (2) 2 － Accelerate growth of brands under development ◆ Received No.1 awards in various categories from VoCE Beauty Awards 2013 Spring Summer. ◆ Opened 2 new stores in Japan and opened 2 overseas stores (Thailand) since Dec. 2012. THREE store openin
Slide 16: 3. Impact of Integration of the Production Structure
1. Highlights of Consolidated Performance 2. Segment Analysis and Progress of Key Strategies 3. Impact of Integration of the Production Structure 4. Forecasts for Fiscal 2013 5. Initiatives for the Second Half Onward 16
Slide 17: Impact of Integration of the Production Structure
Impact of Integration of the Production Structure Focus resources to our strength, skincare and base make-up products. Promote cost-saving and efficiency improvement initiatives including outsourcing. Approx. ¥6.0 bil. Approx. ¥3.0 bil. 2018 onwards: OP Expecting the effect income to continue Sep. 1
Slide 18: 4. Forecasts for Fiscal 2013
1. Highlights of Consolidated Performance 2. Segment Analysis and Progress of Key Strategies 3. Impact of Integration of the Production Structure 4. Forecasts for Fiscal 2013 5. Initiatives for the Second Half Onward 18
Slide 19: Forecasts for Fiscal 2013 (same as initial forecasts)
Forecasts for Fiscal 2013 (same as initial forecasts) No changes to the initial forecasts despite the impact of plant integration. FY2013 YoY Change FY2013 YoY Change Full Year First Half (Millions of yen) Amount % Amount % Forecasts Results Consolidate Net Sales 188,500 7,626 4.2% 91,415 5,008 5.8%
Slide 20: Factors impacting the net income forecast (FY2013)
Factors impacting the net income forecast (FY2013) (Millions of yen) Positive Impact Negative Impact 10,000 Approx. +¥700 mil. Approx. +¥300 mil. Approx. -1,800 to 2,500 mil. Positive foreign Gain on sale of ・ Loss on POLA USA pullout exchange impact idle property ・ Loss on plant integration 9,000 A
Slide 21: 5. Initiatives for the Second Half Onward
1. Highlights of Consolidated Performance 2. Segment Analysis and Progress of Key Strategies 3. Impact of Integration of the Production Structure 4. Forecasts for Fiscal 2013 5. Initiatives for the Second Half Onward 21
Slide 22: Initiatives for the Second Half Onward (1)
Initiatives for the Second Half Onward (1) Generate stable profits with flagship brands ◆ Introducing top of the line product of B.A series, B.A GRANDLUXE II in September. ◆ Aim to increase amount spent per customer by promoting customers to purchase additional item. POLA “B.A GRANDLUXE II” will be
Slide 23: Initiatives for the Second Half Onward (2)
Initiatives for the Second Half Onward (2) Accelerate overseas expansions ◆ Continue to invest to open stores in China to bring the total number of stores in China to 100. ◆ Continue to reinforce expansion under new structure in China. ◆ Increase number of stores handling its products in Russia. ◆ C
Slide 24: Progress toward Long-Term Vision
Progress toward Long-Term Vision Long-term Vision (Goals for 2020) Mid-term Management Next Mid-term Management Indicators Plan (2011 to 2013) Management Plan mostly on track. Net sales: ¥250.0 billion or more will be announced at Overseas sales ratio: 20% or more Overseas sale ratio the conference