Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — H1 2015 Earnings Presentation
26 slides from Pola Orbis's earnings presentation, 2015
Slide 1: First Half of Fiscal 2015 Supplementary Material
First Half of Fiscal 2015 Supplementary Material POLA ORBIS HOLDINGS INC. 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 performance may differ materially
Slide 2: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2015 4. Appendix 1
Slide 3: Q2 Key Topics
Q2 Key Topics Cosmetic Market Japanese cosmetic market, showed moderate recovery trend mainly in the urban areas. Japanese department stores showed growth driven by the inbound tourists.* Overall Chinese market maintained growth, but department stores in coastal cities continued to decline. Co
Slide 4: Analysis of Consolidated P&L Changes: Net Sales to Operating Income
Analysis of Consolidated P&L Changes Net Sales to Operating Income FY2014 FY2015 YoY change Vs. FY2013H1 (mil. yen) H1 Results H1 Results Amount % Amount % Consolidated net sales 95,940 99,783 3,843 4.0% 8,367 9.2% Cost of sales 18,586 19,140 554 3.0% 859 4.7% Gross profit 77,354 80,643 3,288 4.3% 7
Slide 5: Analysis of Consolidated P&L Changes: Operating Income to Net Income
Analysis of Consolidated P&L Changes Operating Income to Net Income FY2014 FY2015 YoY change Vs. FY2013H1 (mil. yen) H1 Results H1 Results Amount % Amount % Operating income 8,331 9,239 907 10.9% 2,934 46.5% Non-operating income 328 525 197 60.1% (554) (51.3%) Non-operating expenses 616 91 (524) (85
Slide 6: Factors Impacting Net Income
Factors Impacting Net Income Gross profit increased due to increase in sales at beauty care business. Net income was significantly up by 64.6% due to increase in non-operating income following gain from favorable foreign exchange. ・Switchover to the point system Positive impact Negative impact (mil.
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2015 4. Appendix 6
Slide 8: Segment Results
Segment Results FY2014 FY2015 YoY change Vs. FY2013H1 (mil. yen) H1 Results H1 Results Amount % Amount % Consolidated net sales 95,940 99,783 3,843 4.0% 8,367 9.2% Beauty care 89,400 93,133 3,733 4.2% 7,797 9.1% Real estate 1,571 1,451 (119) (7.6%) (41) (2.8%) Others 4,968 5,197 229 4.6% 611 13.3% O
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2014 FY2015 YoY change Vs. FY2013H1 (mil. yen) H1 Results H1 Results Amount % Amount % Beauty care net sales 89,400 93,133 3,733 4.2% 7,797 9.1% POLA 49,650 50,110 460 0.9% 1,221 2.5% ORBIS 25,245 27,676 2,431 9.6% 4,029 17.0% Jurlique 7,294 7,903 608 8.3% 1,
Slide 10: Brand Analysis (1)
Brand Analysis (1) H1 Result Topics New skin-whitening products sold well, leading to “White Shot” series launched in favorable sales February became a huge hit. Operating income was significantly increased by increase “Inner Lock” became popular in gross profit following increase in sales,
Slide 11: Brand Analysis (2)
Brand Analysis (2) H1 Result Topics On actual basis, sales did not exceed the same period Launched “ORBIS the Cleansing One” as a last year which had surge in demand prior to the tax hike. new high-end facial cleanser in May. In spite of decrease in actual sales, operating income was only down
Slide 12: Brand Analysis (3)
Brand Analysis (3) H1 Result Topics Sales was up 8% YoY on AUD basis. Launched new night cream from the key Overall department stores in urban cities in China showed “Purely White” series. negative trend. At Jurlique, in addition to the sluggish Launched the first sunscreen series market tre
Slide 13: Brand Analysis (4)
Brand Analysis (4) H1 Result Topics Overall sales were down 33% on USD basis. Launched “Black Sea Spa Operating loss increased due to decrease in gross profit. Collection” The results were in-line with the forecast, resulting from strategic store closing in China and reduction of sales chann
Slide 14: Brand Analysis (5) Brands Under Development
Brand Analysis (5) Brands Under Development H1 Result Topics THREE and decencia continued to lead growth. THREE Shimmering Lip Jam 08 won best THREE increased sales by approx. 50% YoY with new cosmetic awards from various beauty magazines. store openings and strong performance of existing VOCE
Slide 15: Forecasts for Fiscal 2015
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2015 4. Appendix 14
Slide 16: Forecasts for FY2015 (No change since April 30)
Forecasts for FY2015 (No change since April 30) No change to the initial forecasts. Aiming to achieve increase in sales and operating income for the 6th consecutive year. FY2015 YoY change FY2015 YoY change (mil. yen) Full Year Forecast Amount % H1 Results Amount % Consol. net sales 207,500 9,405 4.
Slide 17: Initiatives for FY2015 Onward (1)
Initiatives for FY2015 Onward (1) Realizing 2014 - 2016 Medium-term Management Plan Sustain stable growth of flagship brands to lead Group earnings Launch the new, fully remodeled and advanced “B.A” series in August. The “B.A” series celebrates its 30th anniversary this year. With the leading-ed
Slide 18: Initiatives for FY2015 Onward (2)
Initiatives for FY2015 Onward (2) Realizing 2014 - 2016 Medium-term Management Plan Overseas brands contributing to profitability through high sales growth Jurlique plans to launch new products in August, celebrating its 30th anniversary. Launch additional products in “Nutri-Define” series to ai
Slide 19: H2O PLUS Brand Revitalization
H2O PLUS Brand Revitalization February 2015 July October 2016 Appointed a new CEO Announced business model Relocate HQ to San Francisco Product restage Joy Chen assumed CEO change Transition to the new lean Outsource all development and position Change business model at organization manufact
Slide 20: Appendix
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2015 4. Appendix 19
Slide 21: Appendix: About POLA ORBIS Group
Appendix: About POLA ORBIS Group Beauty care is the core business of the Group, and 9 different cosmetic brands are operated under the Group umbrella. FY2014 Consol. Net Sales ¥198.1 bil. Overseas Overseas Flagship Flagship Brandsunder Brands under Brands Brands Brands Brands development development
Slide 22: Appendix: Beauty Care Business Brand Portfolio
Appendix: Beauty Care Business Brand Portfolio Sales Brand Concept and products Price Sales channel ratio* Consignment sales through POLA LADIES： High-prestige skincare Approx. POLA THE BEAUTY (PB), 54% Leading-edge technology in anti- ¥10,000 Esthe-inn and conventional door-to-door aging and
Slide 23: Appendix: Main Product Series at POLA and ORBIS
Appendix: Main Product Series at POLA and ORBIS B.A APEX WHITＩSSIMO WHITE SHOT Anti-aging Anti-aging Skin-whitening The most prestige skincare and Launched in 1989 as the first tailor- Skin-whitening series infused with foundation make-up series at made skincare and foundation the latest research fi
Slide 24: Appendix: Beauty Care Business FY2014 Results by Brands
Appendix: Beauty Care Business FY2014 Results by Brands FY2013 FY2014 YoY change (mil. yen) Results Results Amount % Consol. net sales 191,355 198,094 6,738 3.5% Beauty care net sales 178,306 184,475 6,168 3.5% POLA 100,740 99,571 (1,168) (1.2%) ORBIS 48,163 52,302 4,139 8.6% Jurlique 14,810 17,600
Slide 25: Appendix: Long-term Vision
Appendix: Long-term Vision Corporate Philosophy STAGE3 “Inspire all people and touch their hearts” 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%
Slide 26: Appendix: 2014–2016 Medium-term Management Plan
Appendix: 2014–2016 Medium-term Management Plan The 2nd stage of the long-term vision for 2020 Aim to enhance the enterprise value by further strengthening domestic earnings structure, accelerating overseas expansion, and improving capital efficiency. Consolidated net sales Capital efficiency Cons