Milbon Co., Ltd. · TSE:4919
Milbon — Q2 2018 Earnings Presentation
24 slides from Milbon's earnings presentation, Jul 25, 2018
Slide 1: Milbon Co., Ltd. Financial Results Presentation Materials
Milbon Co., Ltd. FY2018 Second Quarter (January 1, 2018 – June 30, 2018) Financial Results Presentation Materials July 25, 2018 Copyright © 2018 Milbon. All rights reserved.
Slide 2: Table of Contents
Table of Contents P3 Consolidated Operating Results P4 Consolidated Sales by Product Category P10 Consolidated Statement of Earnings P11 Consolidated Trends in Capital Expenditures and R&D Expenses P12 Trends in Market Related Data, Trends in FPs P13 Outlook of Milbon Group P14 Outlook of Overseas S
Slide 3: Change in fiscal year end and notation of periods
Starting in the previous fiscal year, the Company changed its fiscal year end from December 20 to December 31. Additionally, the Company’s consolidated subsidiaries changed their fiscal year end from September 30 to December 31. While the second quarter of the fiscal year under review covers the six
Slide 4: Consolidated Operating Results (FY2018 6 months)
Consolidated Operating Results (FY2018 6 months) Sales grew steadily both in Japan and overseas (Unit: million yen) Increase/ FY2017 FY2018 Increase/ Decrease ratio 6 months *) 6 months *) Decrease (%) Net sales 14,956 16,802 1,846 12.3 Gross profit 10,069 11,752 1,683 16.7 SG&A expenses 7,736 8,777
Slide 5: Consolidated Sales by Product Category [Hair Care Product]
Consolidated Sales by Product Category [Hair Care Product] Premium brands continued strong performance (FY2018 6 months) (Unit: million yen) FY2017 6 months *) FY2018 6 months *) Increase/Decrease Increase/Decrease ratio (%) 8,680 9,995 1,315 15.1 • Sales have been steady for the premium brands Auju
Slide 6: A Premium Brand, Aujua
A Premium Brand, Aujua Upgraded scalp care series launched in May is also well received Number of salons*1) (Unit: salons) Increase/ Increase/ FY2017 year-end FY2018 Q2-end Decrease ratio Decrease (%) 3,166 3,513 347 11.0 Sales (FY2018 6 months) (Unit: million yen) Increase/ *2) *2) Increase/ FY2017
Slide 7: A Premium Brand, "milbon"
A Premium Brand, “milbon” Steady progress in salons, overseas rollout in 11 countries Number of salons *1) (Unit: salons) Increase/ Increase/ FY2017 year-end FY2018 Q2-end Decrease ratio Decrease (%) 3,966 4,996 1,030 26.0 Sales (FY2018 6 months) (Unit: million yen) Increase/ Increase/ FY2017 6 mont
Slide 8: Consolidated Sales by Product Category [Hair Coloring Product]
Consolidated Sales by Product Category [Hair Coloring Product] With additional color, Addicthy, which was launched last year, drove sales of hair coloring products (FY2018 6 months) (Unit: million yen) FY2017 6 months *) FY2018 6 months *) Increase/Decrease Increase/Decrease ratio (%) 5,462 5,886 42
Slide 9: A Premium Organic Brand, Villa Lodola (1)
A Premium Organic Brand, Villa Lodola (1) Villa Lodola Color continues to be well-received and to drive brand sales Number of salons (Unit: salons) Increase/ Increase/ FY2017 year-end FY2018 Q2-end Decrease ratio Decrease (%) 6,895 7,507 612 8.9 Sales (FY2018 6 months) (Unit: million yen) Increase/
Slide 10: A Premium Organic Brand, Villa Lodola (2)
A Premium Organic Brand, Villa Lodola (2) Core Product Villa Lodola Color With 92% natural ingredients, the product’s formulation utilizes the power of plants. It brings comfort of an organic product across all aspects, including during application, the finish and continued use. Sales (FY2018 6 mont
Slide 11: Consolidated Statement of Earnings (FY2018 6 months)
Consolidated Statement of Earnings (FY2018 6 months) <Consolidated Statement of Earnings> (Unit: million yen) <Breakdown of net sales by product category> (Unit: million yen) Increase/ FY2017 *) FY2018 *) % total Increase/ Amount 6 months 6 months sales Decrease Increase/ Decrease ratio (%) Increase
Slide 12: Consolidated Trends in Capital Expenditures and R&D Expenses
Consolidated Trends in Capital Expenditures and R&D Expenses (Unit: million yen) FY2018 FY2018 Category FY2014 FY2015 FY2016 FY2017 Jan.–Jun. Plan Capital expenditures 1,028 2,779 4,262 1,570 670 1,668 Depreciation and amortization 1,004 1,033 1,077 1,272 666 1,376 Amount 1,168 1,214 1,232 1,422 712
Slide 13: Trends in Market Related Data, Trends in Fieldpersons (FPs)
Trends in Market Related Data, Trends in Fieldpersons (FPs) Market trends (Japan) 2012 2013 2014 2015 2016 2017 Remarks Number of salons (salons) 231,134 234,089 237,525 240,299 243,360 ― Ministry of Health, Labour and Welfare, Report on Public Health Administration and Services Number of hair Numbe
Slide 14: Outlook of Milbon Group
Outlook of Milbon Group Double-digit growth in Japan (comparison periods differ for overseas subsidiaries due to change to fiscal year end; see next page) (FY2018 6 months) (Unit: million yen) Increase/ Forex rates Forex rates FY2017 FY2018 Start Decrease FY2017 FY2018 6 months *1) 6 months *1) oper
Slide 15: Outlook of Overseas Subsidiaries (1)
Outlook of Overseas Subsidiaries (1) For the outlook of overseas subsidiaries, comments are based on year-on-year comparisons for the period of January through June (6 months), with figures in local currencies. Increase/ Currencies FY2017 FY2018 Decrease ratio (unit) (Jan.–Jun.) (Jan.–Jun.) (%) US
Slide 16: Outlook of Overseas Subsidiaries (2)
Outlook of Overseas Subsidiaries (2) CHINA (Milbon Trading (Shanghai) Co., Ltd.) The direct sales and distributor areas both grew substantially, increasing by 30% year on year. By product, the fashion color Ordeve is progressing steadily, partly due to the results of holding seminars for color speci
Slide 17: Milbon Group Progress in FY2018 (59th Term)
Milbon Group th Progress in FY2018 (59 Term) Ryuji Sato, President and CEO Copyright © 2018 Milbon. All rights reserved. 16
Slide 18: FY2018 Domestic Environment (1)
FY2018 Domestic Environment (1) Growth factors based on current situation (1) Product capabilities <Hair care products> Aujua “milbon” Elujuda, Jemile Fran <Hair coloring products> Ordeve Addicthy <Permanent products> Neo Liscio (2) Salon market • Leading salons: Grew as Aujua contributed to highe
Slide 19: FY2018 Overseas Markets (1)
FY2018 Overseas Markets (1) East Asia Continued growth in Chinese market [Market changes] Change in awareness at leading salons and young salons (1) Awareness regarding service and customer contact (2) Awareness regarding human resources development efforts Korean Market is recovering steadily
Slide 20: Designer education event aimed at Japan and rest of Asia: DA Inspire
Designer education event aimed at Japan and rest of Asia DA Inspire*) Area competitions held in FY2017 8 areas in Japan (Sapporo, Sendai, Tokyo, Kanazawa, Nagoya, Osaka, Hiroshima, Fukuoka) 3 areas overseas (Malaysia, Taiwan, Korea) • June 19: DA Grand Prix Finals *DA of the Year selected from Gra
Slide 21: FY2018 Overseas Markets (2)
FY2018 Overseas Markets (2) North America “milbon”: Introduction in high-end Manhattan salons begins Development of hair coloring products for European and US markets: steady progress Ordeve Addicthy, Ordeve beauté: Launch scheduled for Asian black hair market at the end of 2018, prior to la
Slide 22: FY2018 Cosmetic Products Business Progress
FY2018 Cosmetic Products Business Progress Sales – Education System [Toward establishment of education system] 21 FCEs (Field Cosmetics Educators) selected • Plan to assign 7 units, each consisting of 3 FCEs for one branch Start of training ▼FP (Fieldperson) Triangular structure Six months, st
Slide 23: Outlook of consolidated operating forecasts for FY2018
Outlook of consolidated operating forecasts for FY 2018 The consolidated operating forecasts have been revised upward, taking into consideration the first half results and stable growth in the second half. (Unit: million yen) FY2018 full-year targets FY2018 full-year targets FY2018 1H (before revi
Slide 24: Statements concerning the future such as earnings forecasts
Statements concerning the future such as the earnings forecasts given in this document are based on information currently in the possession of the Company and on assumptions that the Company considers reasonable.