Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — H1 2023 Earnings Presentation
25 slides from Pola Orbis's earnings presentation, 2023
Slide 1: First Half of Fiscal 2023 Supplementary Material
First Half of Fiscal 2023 Supplementary Material POLA ORBIS HOLDINGS INC. Representative Director and President Yoshikazu Yokote • This report contains projections of performance and other projections based on information currently available and certain assumptions judged to be reasonable. Actual pe
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: Q2 Key Topics
Q2 Key Topics Cosmetics Market ◼ The scale of the Japanese cosmetics market (including exports) was strong. ◼ In terms of domestic demand, as COVID-19 was reclassified as Class 5 infectious disease, customer traffic increased with more people going out, and economic activity progressed toward normal
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) H1 Results H1 Results Amount % Consolidated net sales 78,748 85,836 7,088 9.0% Cost of sales 14,263 15,177 913 6.4% Gross profit 64,484 70,659 6,174 9.6% SG&A expenses 59,567 61,692 2,125 3.6% Operati
Slide 5: Consolidated P&L Changes Analysis: Operating Income to Profit Attributable
Consolidated P&L Changes Analysis Operating Income to Profit Attributable to Owners of Parent FY2022 FY2023 YoY Change (mil. yen) H1 Results H1 Results Amount % Operating income 4,917 8,966 4,049 82.3% Non-operating income 4,168 2,560 (1,608) (38.6%) Non-operating expenses 209 137 (72) (34.6%) Ordin
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 ¥3,499 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) H1 Results H1 Results Amount % Consolidated net sales 78,748 85,836 7,088 9.0% Beauty care 76,420 83,529 7,108 9.3% Real estate 1,039 1,036 (3) (0.3%) Others 1,287 1,270 (17) (1.4%) Operating income 4,917 8,966 4,049 82.3% Beauty care 5,246 8,713 3
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2022 FY2023 YoY Change (mil. yen) H1 Results H1 Results Amount % Beauty care net sales 76,420 83,529 7,108 9.3% POLA 45,056 49,763 4,706 10.4% ORBIS 19,060 20,902 1,841 9.7% Jurlique 3,655 3,838 183 5.0% Brands under development 7,919 8,350 431 5.5% Beauty ca
Slide 10: Brand Analysis (1)
Brand Analysis (1) H1 Result Topics ◼ Continued expanding the top line in the domestic businesses. The ◼ Launched a foam-type emulsion in the B.A series number of new customers in Japan increased YoY. (April), which was selected as the best cosmetic ◼ Revenue increased across all channels, with an i
Slide 11: Brand Analysis (2)
Brand Analysis (2) H1 Result Topics ◼ The upward trend in the number of direct selling customers ◼ Sales of highly functional UV protector, which continued, especially the number of new customers saw a double- is gaining traction on social media, were digit rise YoY. Customer base became stabilized
Slide 12: Brand Analysis (3)
Brand Analysis (3) H1 Result Topics ◼ Revenue increased in mainland China partly thanks to face ◼ Sales of star products were favorable in oil continued to perform well, and the growth in Douyin. mainland China. ◼ Double-digit revenue increase continued in Australia and Hong Kong. (Left) Rare Rose F
Slide 13: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development H1 Result Topics ◼ Ameliorated losses in brands under development. ◼ Launched new skincare products ◼ THREE expanded BALANCING series, and sales of skincare from THREE BALANCING series. products increased YoY, driving revenue growth in Japan. (April) ◼ DEC
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 (Revised)
Forecasts for Fiscal 2023 (Revised) The Company has revised upward its forecast of operating income, up ¥0.9 billion, considering the performance for the first half of the fiscal year. FY2023 YoY Change FY2023 Vs. Initial YoY Change (mil. yen) H1 Results Amount % Full-year plan Plan Amount % Consol.
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 Q3 Onward
Initiatives for FY2023 Q3 Onward Domestic Business ◼ To acquire new customers, continue expanding customer contact points mainly via digital means, such as stronger online advertising and social media presence. Introduce kit products leading up to brand entry and stimulate willingness to try. ◼ For
Slide 18: Initiatives for FY2023 Q3 Onward
Initiatives for FY2023 Q3 Onward ◼ Promote approach to customers with skincare products, focusing on face oil that is performing well, with a view to acquiring new customers and increasing retention rates. ◼ Aiming for turning to profitability in the next year, review and reduce fixed cost and lower
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% 43,700 6.4% - - - - Beauty care 40,950 12.1% 42,578 6.7% - -
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% 42,578 6.7% - - - - POLA 24,183 13.9% 25,579 7.4% - - - - O
Slide 21: (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 22: (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 23: (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 24: (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 25: (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