Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q3 2015 Earnings Presentation
25 slides from Pola Orbis's earnings presentation, 2015
Slide 1: Third Quarter of Fiscal 2015 Supplementary Material
Third Quarter of Fiscal 2015 Supplementary Material POLA ORBIS HOLDINGS INC. Director and Vice President Management Planning, Accounting and Global Business Division 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 2015 4. Reference 1
Slide 3: Q3 Key Topics
Q3 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.* Chinese department stores in urban areas continued to show negative trend. Consumer trends to scatter towar
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. FY2013Q3 (mil. yen) Q3 Results Q3 Results Amount % Amount % Consolidated net sales 142,019 152,503 10,483 7.4% 15,156 11.0% Cost of sales 27,896 29,081 1,184 4.2% 1,545 5.6% Gross profit 114,122 123,421 9
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. FY2013Q3 (mil. yen) Q3 Results Q3 Results Amount % Amount % Operating income 10,367 15,247 4,879 47.1% 5,437 55.4% Non-operating income 706 457 (248) (35.2%) (668) (59.4%) Non-operating expenses 205 301
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 increased by 89.7% due to decrease in extraordinary loss versus the same period last year. ・Strong sales at POLA and brands underdevelopment. Increase in sales Positive
Slide 7: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2015 4. Reference 6
Slide 8: Segment Results
Segment Results FY2014 FY2015 YoY change Vs. FY2013Q3 (mil. yen) Q3 Results Q3 Results Amount % Amount % Consolidated net sales 142,019 152,503 10,483 7.4% 15,156 11.0% Beauty care 131,944 142,005 10,060 7.6% 14,285 11.2% Real estate 2,379 2,198 (181) (7.6%) (67) (3.0%) Others 7,695 8,299 603 7.8% 9
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2014 FY2015 YoY change Vs. FY2013Q3 (mil. yen) Q3 Results Q3 Results Amount % Amount % Beauty care net sales 131,944 142,005 10,060 7.6% 14,285 11.2% POLA 72,118 76,382 4,263 5.9% 3,960 5.5% ORBIS 37,641 41,702 4,061 10.8% 6,235 17.6% Jurlique 11,532 12,196 6
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q3 Result Topics Thanks to the successful new products, sales were up yoy. Fully renewed skincare Operating income increased significantly. Sales and gross products in “B.A”, the most profit were increased, and marketing expenses remained flat prestige series within POLA yoy
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q3 Result Topics Actual sales were down 1% yoy, but showed recovery Launched “ORBIS =U encore”, trend since H1’s negative 3% sales growth. full scale anti-aging skincare products Operating income were up yoy. In FY2014Q3, there from “ORBIS =U” series in September. was one-ti
Slide 12: Brand Analysis (3)
Brand Analysis (3) Q3 Result Topics Net sales were up 8% yoy on AUD basis. Launched additional Department stores in urban cities in China showed products in the prestige negative trend. anti-aging skincare series, The positive impact from new product launches could not “Nutri-Define” . cover t
Slide 13: Brand Analysis (4)
Brand Analysis (4) Q3 Result Topics Net sales for the brand were down 24% yoy on USD basis. On track with relocation and outsourcing plans for Operating loss increased due to decrease in gross profit. the brand restage. These are due to the strategic decisions to close underperforming stores
Slide 14: Brand Analysis (5) Brands Under Development
Brand Analysis (5) Brands Under Development Q3 Result Topics THREE and decencia continued to lead growth. THREE launched At THREE, new store openings, strong same-store sales, new products in the hair care and successful overseas expansion led to approx. 50% series, “SCALP & HAIR” in yoy sales
Slide 15: Forecasts for Fiscal 2015
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2015 4. Reference 14
Slide 16: Forecasts for FY2015 (revised from July forecasts)
Forecasts for FY2015 (revised from July 30 forecasts) Increased ¥2.5 bil. in consolidated net sales forecast and ¥1 bil. in operating income forecast. Aiming to achieve increase in sales and operating income for the 6th consecutive year. Full Year Forecast YoY change Full Year Forecast Change (mil.
Slide 17: Initiatives for FY2015 Q4
Initiatives for FY2015 Q4 Realizing 2014 - 2016 Medium-term Management Plan Sustain stable growth of flagship brands to lead Group earnings Launch limited products from “B.A” series, which was renewed in Q3, to promote repeat purchase and increase in purchase per customer from existing domestic cu
Slide 18: Latest News at Our Group
Latest News at Our Group POLA CHEMICAL INDUSTRIES wins the Best Basic Research Award at IFSCC* Conference Zurich 2015 POLA CHEMICAL INDUSTRIES, INC. won the Best Basic Research Award at the IFSCC Conference held in Zurich from September 21st to 23rd. This is the 8th award (first award from the c
Slide 19: Reference
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Forecasts for Fiscal 2015 4. Reference 18
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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