Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q1 2014 Earnings Presentation
21 slides from Pola Orbis's earnings presentation, 2014
Slide 1: First Quarter of Fiscal 2014 Supplementary Material
First Quarter of Fiscal 2014 Supplementary Material POLA ORBIS HOLDINGS INC. Director and Vice President Management Planning, Accounting and Global Business Strategy Naoki Kume This report contains projections of performance and other projections based on information currently available and certain
Slide 2: Agenda
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2014 4. Reference 1
Slide 3: Q1 Key Topics
Q1 Key Topics Cosmetic Market Recovery of business confidence positively influenced consumer sentiment and spending improved. Consumption tax hike on April 1st caused increased consumer demand in March. Impact of the last-minute surge in demand was particularly strong at department stores and sa
Slide 4: Analysis of Consolidated P&L Changes: Net Sales to Operating Income
Analysis of Consolidated P&L Changes Net Sales to Operating Income FY2013 FY2014 YoY (mil. yen) Q1Result Q1Result Amount % Consolidated net sales 41,238 50,213 8,975 21.8% Cost of sales 8,131 9,666 1,534 18.9% Gross profit 33,107 40,547 7,440 22.5% SG&A* expenses 31,505 35,093 3,587 11.4% Operating
Slide 5: Analysis of Consolidated P&L Changes: Operating Income to Net Income
Analysis of Consolidated P&L Changes Operating Income to Net Income FY2013 FY2014 YoY (mil. yen) Q1Result Q1Result Amount % Operating income 1,601 5,453 3,852 240.6% Non-operating income 564 151 (413) (73.2%) Non-operating expenses 21 444 423 1970.1% Ordinary income 2,144 5,160 3,015 140.6% Extraord
Slide 6: Factors Impacting Net Income
Factors Impacting Net Income While gross profit significantly increased due to the last-minute surge in demand prior to the consumption tax hike, sales commissions and tax expenses also increased. As a result, net income was up 96% YoY. (mil. yen) Positive impact Negative impact 10,000 235 595 8,000
Slide 7: Agenda: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2014 4. Reference 6
Slide 8: Segment Results
Segment Results FY2013 FY2014 YoY (mil. yen) Q1Result Q1Result Amount % Consolidated net sales 41,238 50,213 8,975 21.8% Beauty care 38,559 47,110 8,550 22.2% Real estate 719 762 43 6.0% Others 1,960 2,341 381 19.4% Operating income 1,601 5,453 3,852 240.6% Beauty care 1,472 5,266 3,793 257.6% Real
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2013 FY2014 YoY (mil. yen) Q1Result Q1Result Amount % Beauty care net sales 38,559 47,110 8,550 22.2% POLA 21,492 26,412 4,919 22.9% ORBIS 10,899 13,274 2,375 21.8% Jurlique 3,102 3,702 600 19.4% H2O PLUS 1,107 1,319 211 19.1% Brands under development 1,957 2
Slide 10: Brand Analysis (1)
Brand Analysis (1) (mil. yen) Total number of customers and purchase per Q1 Result YoY customer marked significant increases. Net sales 26,412 up 22.9% Number of new customers also increased due to successful sales approaches, such as Operating income 2,750 up 1256.5% events, etc. High-end produ
Slide 11: Brand Analysis (2)
Brand Analysis (2) (mil. yen) Purchase per customer increased mainly with Q1 Result YoY repeat customers, due to the last-minute Net sales 13,274 up 21.8% surge in demand prior to the tax hike. ORBIS =U series launched in February had Operating income 3,587 up 71.2% favorable sales. Overall sale
Slide 12: Brand Analysis (3)
Brand Analysis (3) China sales was slightly weaker due to the Reverse effect from the first shipments to slow Chinese New Year’s holiday shopping, retailers in Russia last year, and sluggish but HK and DFS sales were strong and sales in China resulted in weaker than overall sales was up by 24% o
Slide 13: Brand Analysis (4): Brands Under Development
Brand Analysis (4) Brands Under Development (mil. yen) Prestige brand, THREE, had strong sales Q1 Result YoY due to the last-minute surge in demand and Net sales 2,401 up 22.7% new product launches. At Future Labo, sales increased YoY, but it Operating Income (224) up 115 was weaker than expecta
Slide 14: Agenda: Forecasts for Fiscal 2014
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2014 4. Reference 13
Slide 15: Forecasts for FY2014 (H1 forecasts revised)
Forecasts for FY2014 (H1 forecasts revised) Revised forecasts for the first half as the last-minute surge in demand was stronger than expected. Full year forecast remains the same as initially planned. FY2014 YoY FY2014 YoY vs. Initial Full Year H1 H1 (mil. yen) Amount % Amount % Amount % Revised In
Slide 16: Initiatives for FY2014 Q2 Onward
Initiatives for FY2014 Q2 Onward Realizing 2014 - 2016 Medium-term Management Plan Sustain stable growth of flagship brands to lead Group earnings As countermeasure against the reverse effect of the last-minute surge in demand, promote seasonal products to acquire new customers and turn them to lo
Slide 17: Agenda: Reference
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2014 4. Reference Download historical financial data here. http://ir.po-holdings.co.jp/ja/Finance/Factsheet.html 16
Slide 18: (Reference) About POLA ORBIS Group
(Reference) About POLA ORBIS Group Beauty care is the core business of the Group and 9 different cosmetic brands are operated under the Group umbrella. FY2013 Consol. Net Sales ¥191.3 bil. Overseas Flagship Brands under Brands Brands development High prestige ¥10,000 Prestige Beauty care business 93
Slide 19: (Reference) Beauty Care Business Brand Portfolio
(Reference) Beauty Care Business Brand Portfolio Sales Brand Concept and products Price Sales channel ratio* Consignment sales through High-prestige skincare Approx. POLA LADIES： 53% Leading-edge technology in anti- ¥10,000 POLA THE BEAUTY (PB), aging and skin-whitening fields or higher Esthe-
Slide 20: (Reference) Long-term Vision
(Reference) 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: (Billions of yen) •Consol. net sales: ¥250.0 bil. or higher Further strengthen domestic •Overseas sales ra
Slide 21: (Reference) 2014–2016 Medium-term Management Plan
(Reference) 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 Co