Milbon Co., Ltd. · TSE:4919
Milbon — Q1 2020 Earnings Presentation
23 slides from Milbon's earnings presentation, May 12, 2020
Slide 1: FY2020 First Quarter Financial Results Presentation Materials
Milbon Co., Ltd. FY2020 First Quarter (January 1, 2020 –March 31, 2020) Financial Results Presentation Materials May 12, 2020 Copyright © 2020 Milbon. All rights reserved.
Slide 2: Table of Contents
Table of Contents P2 Consolidated Operating Results P3 Responding to the Risk of the spread of COVID-19 P4 Consolidated Sales by Product Category P14 Consolidated Statement of Earnings P15 Consolidated Trends in Capital Expenditures and R&D Expenses P16 Trends in Market Related Data, Trends in FPs P
Slide 3: Consolidated Operating Results (FY2020 3 months)
Consolidated Operating Results (FY2020 3 months) Sales declined in China, which was affected by the spread of COVID-19. In Japan, sales grew, but consolidated earnings fell because of restrictions on activities such as the cancellation of large-scale events and seminars scheduled to be held from
Slide 4: Responding to the Risk of the spread of COVID-19
Responding to the Risk of the spread of COVID-19 We place top priority on the safety and health of our employees, their families, customers, and other stakeholders, and strive to prevent the spread of infectious diseases. Our current response to infectious disease risk is as follows. ■ Response to C
Slide 5: Sales by Product Category: Hair Care Products (1)
Consolidated Sales by Product Category [Hair Care Products (1)] Consolidated Sales (FY2020 3 months) (Unit: million yen) FY2019 FY2020 Increase/ Increase/ 3 months 3 months Decrease Decrease ratio (%) 4,323 4,424 101 2.3 • Domestically, sales of the premium brands Aujua and Global Milbon continued t
Slide 6: Sales by Product Category: Hair Care Products (2) New Products
Consolidated Sales by Product Category [Hair Care Products (2)] New Products FY2020 3 months Aujua Scalpcare Series Fortice Line A scalp care series that approaches Ageing Bacteria present on the scalp to curb complex aging damage of the hair and scalp. (Unit: million yen) FY2020 FY2020 target* Prog
Slide 7: A Premium Brand, Aujua
A Premium Brand, Aujua Launched a new product, Scalpcare Series Fortice Line Number of salons (Unit: salons) Increase/ Increase/ FY2019 *1 FY2020 *1 Decrease Decrease ratio (%) 3,698 3,757 59 1.6 Consolidated sales (FY2020 3 months) (Unit: million yen) FY2019 FY2020 Increase/ Increase/ Trends in sal
Slide 8: A Premium Brand, Global Milbon
A Premium Brand, Global Milbon Growth with more salons both in Japan and overseas Number of salons (Unit: salons) Increase/ Increase/ FY2019 *1 FY2020 *1 Decrease Decrease ratio (%) 7,674 8,970 1,296 16.9 Consolidated sales (FY2020 3 months) (Unit: million yen) FY2019 FY2020 Increase/ Increase/ Tren
Slide 9: Sales by Product Category: Hair Coloring Products (1)
Consolidated Sales by Product Category [Hair Coloring Products (1)] Consolidated Sales (FY2020 3 months) (Unit: million yen) FY2019 FY2020 Increase/ Increase/ 3 months 3 months Decrease Decrease ratio (%) 3,175 2,995 (179) (5.6) • Sales fell due to a decline in sales in China following the impact of
Slide 10: Sales by Product Category: Hair Coloring Product (2) Core Product
Consolidated Sales by Product Category [Hair Coloring Product (2)] Core Product FY2020 3months Ordeve Addicthy Erases red-tinged brown with high saturation blue. With clear and transparent color expression, it lets customers freely realize individual hair color designs. (Unit: million yen) FY2019 FY
Slide 11: A Premium Organic Brand, Villa Lodola (1)
A Premium Organic Brand, Villa Lodola (1) Decreased due to delayed launch of new products and restrictions on activities. Number of salons (Unit: salons) Increase/ Increase/ FY2019 FY2020 Decrease Decrease ratio (%) 9,015 9,214 199 2.2 Consolidated sales (FY2020 3 months) (Unit: million yen) FY2019
Slide 12: 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. Consolidated sales (
Slide 13: Sales by Product Category: Cosmetic Products
Consolidated Sales by Product Category [Cosmetic Products] Consolidated Sales (FY2020 3 months) (Unit: million yen) FY2019 FY2020 Increase/ Increase/ 3 months 3 months Decrease Decrease ratio (%) - 71 71 - • Due to a downturn in consumer sentiment following the consumption tax hike, distributors and
Slide 14: A Premium Brand, Imprea
A Premium Brand, Imprea Full-fledged development of Imprea, a cosmetics brand exclusively sold in salons Number of salons (Unit: salons) Increase/ Increase/ FY2019 *1 FY2020 *1 Decrease Decrease ratio (%) 200 261 61 30.5 Consolidated sales (FY2020 3 months) (Unit: million yen) FY2019 FY2020 Increase
Slide 15: Consolidated Statement of Earnings (FY2020 3 months)
Consolidated Statement of Earnings (FY2020 3 months) <Consolidated Statement of Earnings> (Unit: million yen) <Breakdown of net sales by product category> (Unit: million yen) Increase/ FY2019 FY2020 Increase/ FY2019 % to FY2020 % to 3 months 3 months % to sales Decrease Decrease ratio (%) 3 months s
Slide 16: Trends in Capital Expenditures and R&D Expenses
Consolidated Trends in Capital Expenditures and R&D Expenses (Unit: million yen) FY2020 FY2020 Category FY2016 FY2017 FY2018 FY2019 Jan.–Mar. Plan Capital expenditures 4,262 1,570 1,149 1,605 325 1,958 Depreciation and amortization 1,077 1,272 1,370 1,453 372 1,632 Amount 1,232 1,422 1,479 1,534 380
Slide 17: Trends in Market Related Data, Trends in Fieldpersons (FPs)
Trends in Market Related Data, Trends in Fieldpersons (FPs) Market trends (Japan) 2014 2015 2016 2017 2018 2019 Remarks Number of salons ― 237,525 240,299 243,360 247,578 251,140 Ministry of Health, Labour and Welfare, Report on (salons) Public Health Administration and Services Number of beauty sal
Slide 18: Consolidated Net Sales in Japan and Overseas
Consolidated Net Sales in Japan and Overseas FY2020 3 months (Unit: million yen) FY2019 FY2020 Increase/ Changes in Local *1 3 months 3 months Increase/ Decrease ratio currency base Decrease Net Sales % to sales Net Sales % to sales (%) (%) Consolidated Net Sales 7,886 100.0 7,825 100.0 (60) (0.8) 0
Slide 19: Consolidated Operating Income in Japan and Overseas
Consolidated Operating Income in Japan and Overseas FY2020 3 months (Unit: million yen) FY2019 FY2020 Increase/ 3 months 3 months Increase/ Decrease ratio Operating Operating Operating Operating Decrease (%) Income income ratio(%) Income income ratio(%) Consolidated Operating Income 1,265 16.0 1,031
Slide 20: Outlook of Overseas Subsidiaries (1)
Outlook of Overseas Subsidiaries (1) Figures in the text are based on local currency. USA MILBON USA, INC • Beauty salons have been temporarily closed since mid-March due to the lockdown, and also our field activities have been restricted, and that have begun to be affected by sales. Double-digit gr
Slide 21: Outlook of Overseas Subsidiaries (2)
Outlook of Overseas Subsidiaries (2) Figures in the text are based on local currency. KOREA (Milbon Korea Co., Ltd.) • In January, the company is doing well, and from February it will begin to be affected by restrictions due to COVID-19. The self-restraint mood widened in the Daegu region where the
Slide 22: Appendix: Hair Care Brand Positioning Map
<Appendix> Hair Care Brand Positioning Map Premium brand Hanako junior Baby boomer junior LINE generation Hanako generation Targets generation generation (born 1992-1996) (born 1956-1964) (born 1987-1991) (born 1971-1976) Professional brands facing Copyright © 2020 Milbon. All rights reserved. 21
Slide 23: 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.