First Quarter of Fiscal 2021 Supplementary Material
POLA ORBIS HOLDINGS INC.
Director
Finance, Legal & Administration,
PR, IR and CSR
Akira Fujii
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 from these projections resulting from changes in the economic environment and other risks and uncertainties.
- Highlights of Consolidated Performance
- Segment Analysis
- Forecasts for Fiscal 2021
- Initiatives Going Forward & Appendices
1
Q1 Key Topics
Cosmetics Market
- The overall size of the Japanese cosmetics market (including exports) continued to shrink due to the impact of COVID-19
- Inbound demand was sluggish due to Japanese border entry restrictions
- The outlook for the net domestic market remains unclear, with the declaration of another state of emergency in some regions by the Japanese government on January 8, which was lifted only to be reimposed on April 25
Our Group
Source: Ministry of Economy, Trade and Industry, Ministry of Internal Affairs and Communications, Japan Tourism Agency, Japan Department Stores Association, and Intage SLI
Consolidated revenue and income increased, thanks to a strong performance | Medium-term Management | ||
from POLA overseas, and growth in e-commerce across each brand | Plan Indicators (2021Q1) | ||
| POLA overseas revenue increased (+63% YoY), with high growth continuing in China | Overseas sales ratio | 18.3% |
(+3.3ppt*) | |||
ORBIS revenue and income decreased, with little activity from existing customers | |||
Domestic e-commerce | |||
Jurlique China revenue increased, and losses were improved | 26.5% | ||
sales ratio | (+2.6ppt*) | ||
Achieved a profit in overseas business across the Group | |||
*vs Dec. 2020 | |||
- Acquired tricot, Inc. as a subsidiary on April 1 (not reflected in the consolidated results forecast)
YoY Change in Consolidated Monthly Net Sales
- Impacted by the declaration of a state of emergency, revenue
(%) | Jan. | Feb. | Mar. | decreased in January-February 2021 compared to the high | ||
level achieved in the same period in the previous year, which | ||||||
10 | ||||||
was before the impact of the COVID-19 pandemic | ||||||
Results for the first quarter slightly exceeded the plan, as | |||||||||||||||
0 | |||||||||||||||
strong performance from POLA overseas and e-commerce | |||||||||||||||
Monthly net sales YoY | across each brand compensated for a decline in revenue in | ||||||||||||||
(month by month) | domestic storefront operations | ||||||||||||||
-10 | Monthly net sales YoY | 2 | |||||||||||||
(cumulative | total) | ||||||||||||||
Consolidated P&L Changes Analysis
Net Sales to Operating Income
FY2020 | FY2021 | YoY Change | |||
(mil. yen) | Q1 Results | Q1 Results | Amount | % | |
Consolidated net sales | 43,316 | 43,561 | 245 | 0.6% | |
Cost of sales | 7,106 | 6,399 | (706) | (9.9%) | |
Gross profit | 36,210 | 37,162 | 951 | 2.6% | |
SG&A expenses | 34,204 | 32,854 | (1,349) | (3.9%) | |
Operating income | 2,006 | 4,307 | 2,301 | 114.7% | |
Key Factors | |||
| sales | Increased, as e-commerce and overseas operations compensated for | |
Consol. net | |||
the decrease in revenue from storefront operations | |||
Cost of sales | Cost of sales ratio improved due to an increase in the contribution | ||
from POLA's high price range products | |||
Cost of sales ratio 2020Q1 : 16.4% ⇒ 2021Q1 : 14.7% | |||
SG&A expenses | Labor expenses: down ¥129 mil. YoY | ||
Sales commissions: down ¥ 1,031 mil. YoY | |||
⇒ Resulted from a sales decline at POLA consignment sales channel. | |||
Sales related expenses: down ¥365 mil. YoY | |||
⇒ Reduced due to expense rationalization | |||
Administrative expenses, etc.: up ¥177 mil. YoY | |||
Operating income | Operating margin 2020Q1: 4.6% ⇒ 2021Q1: 9.9% |
3
Consolidated P&L Changes Analysis
Operating Income to Profit Attributable to Owners of Parent
FY2020 | FY2021 | YoY Change | |||||
(mil. yen) | Q1 Results | Q1 Results | Amount | % | |||
Operating income | 2,006 | 4,307 | 2,301 | 114.7% | |||
Non-operating income | 88 | 1,518 | 1,429 | - | |||
Non-operating expenses | 2,248 | 62 | (2,186) | (97.2%) | |||
Ordinary income | (154) | 5,763 | 5,917 | - | |||
Extraordinary income | 0 | 0 | 0 | (74.9%) | |||
Extraordinary losses | 744 | 210 | (533) | (71.7%) | |||
Profit before income | (898) | 5,552 | 6,450 | - | |||
taxes | |||||||
Income taxes etc. | 352 | 1,600 | 1,247 | 353.8% | |||
Profit attributable to | (4) | 11 | 15 | - | |||
non-controlling interests | |||||||
Profit attributable to | (1,246) | 3,939 | 5,186 | - | |||
owners of parent | |||||||
Key Factors | |||||||
Non-operating income: | Foreign exchange gain ¥1,396 mil. | ||||||
Extraordinary losses: | Impairment loss related to storefront operations ¥185 mil. |
4
Factors Impacting Profit Attributable to Owners of Parent
An increase in gross profit, a change in the business structure, and the impact of the exchange rate boosted profit attributable to owners of parent by ¥5,186 million YoY
(mil. yen)
6,000
5,000
4,000
3,000
2,000
1,000
0
-1,000
-2,000
Positive impact | Negative impact |
533 | |||||||||||||||||||||||
1,263 | 3,939 | ||||||||||||||||||||||
3,615 | |||||||||||||||||||||||
Decrease due to | |||||||||||||||||||||||
POLA consignment sales decline | |||||||||||||||||||||||
365 | |||||||||||||||||||||||
177 | |||||||||||||||||||||||
129 | 1,031 | ||||||||||||||||||||||
Impact of exchange rates | |||||||||||||||||||||||
204 | 746 | ||||||||||||||||||||||
-1,246 | |||||||||||||||||||||||
FY2020 Q1 | Increase | Improved | Labor | Sales | Sales- | Admin. | Non- | Extraordinary Income | FY2021 Q1 | ||||||||||||||
Profit | in gross | cost of | expenses commissions | related | expenses, | operating | income | taxes, | Profit | ||||||||||||||
attributable | profit | sales ratio | expenses | etc. | income | and loss | etc. | attributable | |||||||||||||||
to owners | and loss | to owners | |||||||||||||||||||||
of parent | of parent |
5
- Highlights of Consolidated Performance
- Segment Analysis
- Forecasts for Fiscal 2021
- Initiatives Going Forward & Appendices
6
Segment Results
FY2020 | FY2021 | YoY Change | |||||||
(mil yen) | Q1 Results | Q1 Results | Amount | % | |||||
Consolidated net sales | 43,316 | 43,561 | 245 | 0.6% | |||||
Beauty care | 42,082 | 42,445 | 363 | 0.9% | |||||
Real estate | 636 | 530 | (106) | (16.7%) | |||||
Others | 597 | 585 | (11) | (2.0%) | |||||
Operating income | 2,006 | 4,307 | 2,301 | 114.7% | |||||
Beauty care | 1,700 | 4,190 | 2,490 | 146.5% | |||||
Real estate | 289 | 206 | (83) | (28.8%) | |||||
Others | 4 | 13 | 8 | 161.3% | |||||
Reconciliations | 11 | (102) | (113) | - | |||||
Segment Results Summary | |||||||||
Beauty care | Revenue increased year on year, due to an increase primarily in POLA overseas | ||||||||
Operating income increased significantly due to an increase in gross profit | |||||||||
and changes in POLA's channel structure | |||||||||
Real estate | Occupancy rate has been maintained at a high level | ||||||||
Others | Revenue declined in the building maintenance business | ||||||||
7
Beauty Care Business Results by Brands
(mil. yen)
Beauty care net sales
POLA
ORBIS
Jurlique
H2O PLUS
Brands under development
Beauty care operating income
POLA
ORBIS
Jurlique
H2O PLUS
Brands under development
FY2020 | FY2021 | YoY Change | |
Q1 Results | Q1 Results | Amount | % |
42,082 | 42,445 | 363 | 0.9% |
25,057 | 26,330 | 1,273 | 5.1% |
11,304 | 10,450 | (854) | (7.6%) |
1,297 | 1,672 | 374 | 28.9% |
284 | 167 | (116) | (41.1%) |
4,137 | 3,825 | (312) | (7.6%) |
1,700 | 4,190 | 2,490 | 146.5% |
1,592 | 4,123 | 2,531 | 158.9% |
1,707 | 1,152 | (554) | (32.5%) |
(1,117) | (441) | 675 | - |
(170) | (184) | (14) | - |
(311) | (459) | (147) | - |
Note: Consolidated operating income and loss for each brand are shown for reference purposes only (figures are unaudited)
8
Brand Analysis (1)
Q1 Result
- Purchase per customer for consignment sales recovered to the same level as in the same period of the previous year, as a result of new product offerings, but revenue declined due to a decrease in customer numbers
- Revenue from domestic e-commerce increased substantially
- Mainland China (+120% YoY) and duty-free sales in Korea performed strongly
- Inbound traffic (tourists only) accounted for approximately 2% of revenue (down 3ppt YoY)
Topics
- Renewal of POLA WRINKLE SHOT SERUM (January)
Q1 | Results (mil. yen) | YoY Change | Quarterly net sales (mil. yen) | ||||
Net sales | 26,330 | 5.1% | |||||
Operating income | 4,123 | 158.9% | 40,000 | 32,021 | |||
Key indicators | 30,000 | 25,057 | 26,330 | ||||
Sales ratio | Consignment sales | 68.0% | 20,000 | ||||
Overseas | 20.0% | 10,000 | |||||
E-commerce | 4.9% | 0 | |||||
Dept. store, B2B | 7.1% | 2019 Q1 | 2020 Q1 | 2021 Q1 | |||
Sales growth* | Consignment sales | down 3.9% | |||||
Overseas | up 62.5% | Quarterly operating income (mil. yen) | |||||
E-commerce | up 114.9% | 6,000 | 5,594 | ||||
Dept. store, B2B | down 27.9% | ||||||
Consignment sales | # of sales offices** | 3,503 | 4,000 | 4,123 | |||
channel | (down 277) | ||||||
# of PB** | 625 (down 11) | 2,000 | 1,592 | ||||
Purchase per customer* | up 1.5% | ||||||
# of customers* | down 5.8% | 0 | |||||
2019 Q1 | 2020 Q1 | 2021 Q1 | |||||
Number of stores overseas** | 112 (up 2) | *YoY | 9 |
Topics
Structural reform of sales channels is progressing,
with overseas operations and domestic e-commerce driving POLA's revenue growth
【Sales Ratio by Sales Channel】 | Domestic e-commerce | ||||||||||||||||
Strengthened sales promotion | |||||||||||||||||
capitalizing on new products, achieving | |||||||||||||||||
a YoY increase in revenue of +115% | |||||||||||||||||
Domestic e- | commerce | 3.4% | Domestic | 4.9% | |||||||||||||
e-commerce | |||||||||||||||||
Overseas 15.4% | Overseas | 20.0% | |||||||||||||||
Department store and B2B 7.5% | |||||||||||||||||
Consignment sales 73.7% | |||||||||||||||||
Consignment | Department | ||||||||||||||||
sales | stores | ||||||||||||||||
FY2020 | 2021Q1 | ||||||||||||||||
Also leading to enhanced sales in other channels | |||||||||||||||||
Overseas | |||||||||||||||||
Overseas Net Sales Trend | In China, launched the new B.A in March, | ||||||||||||||||
5.3 bil. | with progress exceeding the plan | ||||||||||||||||
(+63% YoY) | |||||||||||||||||
Other | Net sales in China | ||||||||||||||||
(Hong Kong, 3.2 bil. | grew by 2.2 times YoY | ||||||||||||||||
Taiwan, etc.) | |||||||||||||||||
Travel Retail | |||||||||||||||||
China | Launch event for the new B.A | ||||||||||||||||
2020Q1 | 2021Q1 | (Yen) | |||||||||||||||
10
Brand Analysis (2)
Q1 Result
- New mail-order(e-commerce and catalog) customer acquisition continued strongly at +38% YoY, but revenue declined due to the impact of a decrease in existing customers
- Focused on thorough communication in skincare, primarily for ORBIS U. and new brightening products
Topics
-
Launched new brightening serum,
WHITE CLEAR ESSENCE (February)
Quarterly net sales (mil. yen) | |||
Q1 | Results (mil. yen) YoY Change | ||
Net sales | 10,450 | (7.6%) | 20,000 | ||||
Operating income | 1,152 | (32.5%) | 15,000 | ||||
12,317 | 11,304 | ||||||
Key indicators | 10,450 | ||||||
Sales ratio | E-commerce(1) | 60.5% | 10,000 | ||||
(Proportion of domestic sales | 63.1% | 5,000 | |||||
attributable to e-commerce) | |||||||
Other mail-order | 15.3% | 0 | 2019 Q1 | 2020 Q1 | 2021 Q1 | ||
Stores and overseas | 24.2% | ||||||
Sales growth* | E-commerce | up 2.3% | Quarterly operating income (mil. yen) | ||||
Other mail-order | down 23.6% | 4,000 | |||||
Stores and overseas | down 16.6% | 3,000 | |||||
Mail-order** purchase per customer* | down 6.8% | 2,000 | 1,719 | 1,707 | |||
Number of mail-order** customers* | up 1.1% | ||||||
1,152 | |||||||
ORBIS U series ratio of sales (2) | 28% | 1,000 | |||||
(1) From FY2021, e-commerce includes sales | * YoY basis | 0 | |||||
2019 Q1 | 2020 Q1 | 2021 Q1 | |||||
from external e-commerce | ** include e-commerce and catalog | ||||||
(2) Total of ORBIS U, U white, U encore, and U. | 11 |
Brand Analysis (3) Overseas Brands
Q1 Result
- Jurlique revenue increased and losses were improved, with growth in China, particularly in online sales, despite some store shutdowns due to lockdowns in Australia
- H2O PLUS revenue fell significantly in the amenities business with reduced deliveries due to shutdowns by business partners and restrictions on operations
Topics
-
Jurlique
Renewal of major skincare products (March)
Activating Water Essence +
Q1 | Results (mil. yen) | YoY Change(1) | |
Jurlique | Net sales | 1,672 | 28.9% |
OP income | (441) | 675 | |
H2O PLUS | Net sales | 167 | (41.1%) |
OP income | (184) | (14) | |
Key indicators | |||
Jurlique | |||
Sales ratio | Australia | 17.6% | |
Hong Kong | 13.4% | ||
Duty free | 14.3% | ||
China | 33.3% | ||
Sales growth(2) | Australia | down 18.5% | |
Hong Kong | down 10.2% | ||
Duty free | up 168.2% | ||
China | up 75.9% | ||
- For operating income, the YoY difference is shown as an amount (mil. yen)
- AUD basis, YoY
Quarterly net sales (mil. yen)
3,000 | ||
2,220 | ||
1,840 | ||
1,500 | 1,582 | |
0 | ||
2019 Q1 | 2020 Q1 | 2021 Q1 |
Quarterly operating income (mil. yen)
2019 Q1 | 2020 Q1 | 2021 Q1 |
0 | ||
-500 | ||
-626 | ||
-1,000 | ||
-981 | ||
-1,500 | -1,288 |
12
Brand Analysis (4) Brands Under Development
Q1 Result
-
THREE domestic e-commerce grew (+56% YoY)
Revenue from department stores and other offline channels decreased, compared to the high level achieved in the previous year - DECENCIA revenue increased due to progressive new customer acquisition since the previous year, but income declined due to the continuation of proactive investment
Topics
-
DECENCIA
Launched wrinkle-improving face mask (March)
ayanasu wrinkle O/L face mask concentrate
Q1 | Results (mil. yen) | YoY Change | Quarterly net sales (mil. yen) | |||||
Net sales | 3,825 | (7.6%) | 6,000 | |||||
Operating income(1) | (459) | (147) | ||||||
4,604 | ||||||||
4,137 | ||||||||
ACRO Net sales | 2,101 | (16.3%) | 3,825 | |||||
4,000 | ||||||||
ACRO OP income(1) | (659) | (111) | ||||||
THREE Net sales | 1,686 | (20.9%) | 2,000 | |||||
THREE OP income (1) | (228) | (167) | ||||||
DECENCIA | Net sales | 1,414 | 8.8% | 0 | 2019 Q1 | 2020 Q1 | 2021 Q1 | |
DECENCIA | OP income | 182 | (2.6%) | |||||
Key indicators | Quarterly operating income (mil. yen) | |||||||
THREE | 400 | |||||||
Sales ratio | Domestic storefronts, etc. | 59.5% | 200 | 116 | ||||
Domestic e-commerce | 16.8% | 0 | ||||||
Overseas | 23.7% | -200 | ||||||
Sales growth(2) | Domestic storefronts, etc. | down 19.5% | -400 | -311 | ||||
Domestic e-commerce | up 55.7% | -600 | -459 | |||||
2019 Q1 | 2020 Q1 | 2021 Q1 | ||||||
Overseas | down 43.1% | |||||||
(1) | The operating income YoY change is shown as the amount (mil. yen) | 13 |
(2) | YoY basis | Note: Also includes OEM business. |
- Highlights of Consolidated Performance
- Segment Analysis
- Forecasts for Fiscal 2021
- Initiatives Going Forward & Appendices
14
Forecasts for Fiscal 2021 (Unchanged)
FY2020 | YoY Change | ||
(mil. yen) | Full-year Results | Amount | % |
Consol. net sales | 176,311 | (43,609) | (19.8%) |
Beauty care | 171,658 | (43,228) | (20.1%) |
Real estate | 2,291 | (327) | (12.5%) |
Others | 2,361 | (53) | (2.2%) |
OP income | 13,752 | (17,384) | (55.8%) |
Beauty care | 12,965 | (17,228) | (57.1%) |
Real estate | 710 | (310) | (30.4%) |
Others | 128 | (2) | (1.8%) |
Reconciliations | (51) | 156 | - |
Ordinary income | 12,579 | (18,051) | (58.9%) |
Net income | 4,632 | ||
attributable to | (15,062) | (76.5%) | |
owners of parent | |||
FY2021 | YoY Change | |
Full-year Plan | Amount | % |
190,000 | 13,688 | 7.8% |
185,900 | 14,241 | 8.3% |
2,000 | (291) | (12.7%) |
2,100 | (261) | (11.1%) |
19,000 | 5,247 | 38.2% |
18,850 | 5,884 | 45.4% |
600 | (110) | (15.6%) |
50 | (78) | (61.0%) |
(500) | (448) | - |
19,000 | 6,420 | 51.0% |
11,300 | 6,667 | 144.0% |
Assumed exchange rates : 1.00 AUD = 76 JPY (PY 73.66) 1.00 USD = 107 JPY (PY 106.81) 1.00 CNY = 15.4 JPY (PY 15.48)
FY2020 | |
Shareholder | Annual ¥50 |
returns | Consol. Payout ratio 238.8% |
Capital | ¥8,464 mil. |
investment | |
Depreciation | ¥7,255 mil. |
FY2021 (plan)
Annual ¥51 (Interim ¥20, Year-end ¥31)
Consol. payout ratio 99.8%
¥11,000 mil. - ¥13,000 mil. ¥7,000 mil. - ¥8,000 mil.
15
- Highlights of Consolidated Performance
- Segment Analysis
- Forecasts for Fiscal 2021
- Initiatives Going Forward & Appendices
16
Initiatives for FY2021 Q2 Onward
- Accelerate growth in overseas business
-
Focus on promoting the new B.A, which is performing strongly,
and strive to further accelerate growth in both storefront and e-commerce operations through strategic additional investment - Expand customer touchpoints, planning the opening of several new duty-free stores in Hainan during the second half
- Make investment to build a customer base in domestic e-commerce over the medium to long term, and refine segment communication to enhance LTV
- Launch a Wrinkle Shot limited-edition kit to reinvigorate customer activity (June)
- Launch the first multifunctional UV product that also provides brightening care in the
White Shot series (April), and strengthen sales promotion in anticipation of seasonal demand for brightening products, through the coordination of advertising and online
events(Left) POLA WRINKLE SHOT SEASON SPECIAL KIT L (Right) POLA WHITE SHOT SKIN PROTECTOR DX
- Launch cocktail graphy, the first ORBIS personalized skincare product (April)
- A flat-rate service (once a month) that provides skin measurement through an IoT device, and delivers serum to customers
- Launch WRINKLE WHITE UV PROTECTOR (April), a sunscreen that brightens the skin and improves wrinkles, and expand skincare share within ORBIS
Commence periodic sales, and increase the repeat purchasing rate through thecocktail graphy promotion of inducement to periodic sales
Promote shopping-around to increase the purchase per customer of existing
customers | WRINKLE WHITE | |
UV PROTECTOR | 17 | |
Initiatives for FY2021 Q2 Onward
Overseas Brands
- Renew the major skincare products, and develop them as hero products
- Focus on digital-based marketing, including livestreaming by KOL
Activating Water Essence +
- In e-commerce, focus on acquiring new, high-LTV customers through Clean Beauty skincare
Brands Under Development
- For THREE, expand Holistic Care products, and launch new oil gel- type cleansing products from the BALANCING line (May)
THREE BALANCING CLEANSING OIL GEL
- E-commerce-onlygift promotions, launch kit products, and strengthen e-commerce sales promotions
- Shift online to improve the business structure, reduce fixed costs and
improve profitability | (E-commerce limited) |
ITRIM Elementary Facial Trial Kit |
Improve the efficiency of customer acquisition, optimize the allocation of advertising expenses, and enhance profitability
18
(Appendix) About POLA ORBIS Group
Beauty care is the core business of the Group, and
10 different cosmetics brands are operated under the Group umbrella
FY2020
Consol. Net Sales
¥176.3 bil.
Range Price
Beauty care business 98%
Real estate business 1%
Other businesses 1%
(building maintenance business)
Overseas | Flagship | Brands under |
Brands | Brands | development |
¥20,000
High Prestige
¥10,000 Prestige
¥5,000
Middle-tier
Acquired as a subsidiary in April 2021
¥1,000
Mass-market
POLA CHEMICAL INDUSTRIES
Our strengths
- Multi-brandstrategy
- Focus on skincare products
- Flagship brands, POLA and ORBIS own and operate through their own unique sales channels
- Meeting diversified needs of customers
- High customer repeat ratio
- Strong relationships with customers
19
(Appendix) Beauty Care Business Brand Portfolio
Sales | Brand | Concept and products | |
ratio* | |||
High-prestige skincare | |||
60% | |||
Leading-edge technology in aging- | |||
Flagship | Since 1929 | care and skin-brightening fields | |
brands | |||
26% | Aging-care brand to draw out | ||
Since 1984 | people's intrinsic beauty | ||
4% | Premium natural skincare brand | ||
from Australia | |||
Acquired in 2012 | |||
Overseas | |||
Brands | Skincare with concept of innovation | ||
1% | |||
Acquired in 2011 | and power of pure water | ||
Skincare made with natural | |||
ingredients from Japan and | |||
Since 2009 | fashion-forwardmake-up | ||
High prestige quality makeup from | |||
Since 2018 | Japan | ||
Brands | Premium skincare made from finely | ||
under | 9% | Since 2018 | selected organic ingredients |
develop | |||
-ment | Industry's first men's cosmetics | ||
Since 2018 | focusing on makeup | ||
Since 2007 | Skincare for sensitive skin | ||
Personalized beauty care brand | |||
Acquired in 2021 | operated by tricot, Inc. | ||
Price | Main sales channel | |
Approx. | JP: Consignment sales, department stores and e-commerce | |
¥10,000 | Overseas: Department stores, directly-operated stores, DFS(1) and | |
or higher | cross-bordere-commerce | |
Approx. | JP: Mail-order(e-commerce and catalog) | |
¥1,000~ | and directly-operated stores | |
¥3,000 | Overseas: E-commerce,cross-bordere-commerce, and DFS(1) | |
Approx. | AU: Department stores, directly-operated stores and e-commerce | |
¥5,000 | Overseas: Department stores, directly-operated stores, DFS(1) | |
or higher | and cross-bordere-commerce | |
Approx. | ||
¥4,000 | US: E-commerce, hotel amenities | |
not sold in | ||
Japan | ||
Approx. | JP: Department stores, directly-operated stores | |
and e-commerce | ||
¥5,000 | ||
Overseas: Department stores, DFS(1) and | ||
or higher | Operated | |
cross-bordere-commerce | ||
Approx. | Overseas: DFS(1) and cross-bordere-commerce | |
¥5,000~ | JP: Department stores and e-commerce | |
¥10,000 | by | |
Approx. | JP: Department stores and e-commerce | ACRO |
¥20,000 | Overseas: DFS(1) and cross-bordere-commerce | |
Approx. | JP: Department stores, directly-operated stores | INC |
and e-commerce | . | |
¥2,000~ | ||
¥12,000 | Overseas: DFS(1) and cross-bordere-commerce | |
Approx. | JP: E-commerce, department store | |
¥5,000~ | ||
Overseas: Cross-bordere-commerce | ||
¥10,000 | ||
Approx. | ||
¥6,000~ | JP: E-commerce | |
¥10,000 |
*Sales ratio in the beauty care business as of FY2020. FUJIMI is excluded, as it was included in the scope of consolidation from April 2021 | (1) Duty free stores 20 |
(Appendix) Improvement in Capital Efficiency and Shareholder Returns
Initiatives to Improve Capital Efficiency
| Operating income CAGR30% | ||
EPS | Achieve net income growth | ||
Target for 2023 | which is higher than operating | ||
(Earnings per share) | income growth by decreasing |
ROE movement | |
(%) | |
16.0 | 14.2 |
12.0 | 10.4 |
ROE 12% | = | overseas losses |
(Return on equity) | |
Improve shareholder return |
7.8
8.05.9
9.0
BPS | through dividends | |
(Book value per share) | ||
Optimize balance sheet | ||
Investment for future growth |
4.3 | 4.3 | 2.6 | |||||||
4.0 | |||||||||
0.0 | |||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
Improvement of Shareholder Return
Basic Policy : | 238.8% |
160 |
With a policy of consolidated payout ratio of 60% or higher, |
210.9%
enhance shareholder return by realizing stable profit growth |
Purchases of treasury stock shall be considered based on our |
investment strategies, as well as market prices and liquidity of |
the Company's shares |
Dividends forecast for FY2021:
120 | ||
80 | 99.6% | 57.1% |
67.7% | ||
58.8% | ||
40 | 41.4% | |
140% | |
130.3% | 120% |
100% | |
99.8% 80% | |
60% | |
40% |
- Dividend per share | : ¥51 (Interim ¥20, Year-end ¥31) |
- Consol. payout ratio | : 99.8% |
41.5% | 20% | ||||||||||||||
0 | 0% | ||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||
(yen) | |||||||||||||||
(Plan) | |||||||||||||||
Dividends | Special Dividends | Payout ratio | |||||||||||||
21
(Appendix) 2021 - 2023 Medium-term Management Plan
Management Indicators for 2023
Consolidated net sales | ⇒ ¥215.0 to 225.0 bil. in FY2023 | ||
CAGR 7 to 9% | |||
Net Sales | Overseas sales ratio | ⇒ 20 to 25% in FY2023 (15% in FY2020) | |
CAGR 20 to 25% | |||
Domestic e-commerce | ⇒ 30% in FY2023 (24% in FY2020) | ||
sales ratio | |||
Operating | Operating margin | ⇒ 15% or higher in FY2023 | |
Income | Operating income | ⇒ CAGR 30% or higher | |
Capital | ROE | ⇒ 12% in FY2023 | |
Efficiency | |||
Shareholder | Consolidated payout ratio | ⇒ 60% or higher | |
Returns |
Strategy 1. Evolve domestic direct selling
Strategy 2. Grow overseas businesses profitably
Strategy 3. Profit contribution from brands under development
Strategy 4. Strengthen operations
Strategy 5. Expand new brands and domains of "beauty"
22
(Appendix) Beauty Care Business Results for FY2018 - FY2020 by Brands
FY2018 | FY2019 | FY2020 | 2019 vs 2020 YoY Change | ||
(mil. yen) | Results | Results | Results | Amount | % |
Consolidated net sales | 248,574 | 219,920 | 176,311 | (43,609) | (19.8%) |
Beauty care | 231,207 | 214,886 | 171,658 | (43,228) | (20.1%) |
net sales | |||||
POLA | 150,183 | 135,502 | 102,888 | (32,613) | (24.1%) |
ORBIS | 51,051 | 50,726 | 45,415 | (5,310) | (10.5%) |
Jurlique | 10,386 | 7,765 | 6,444 | (1,320) | (17.0%) |
H2O PLUS | 2,041 | 1,470 | 722 | (747) | (50.9%) |
Brands under development | 17,544 | 19,421 | 16,186 | (3,235) | (16.7%) |
Consol. operating income | 39,496 | 31,137 | 13,752 | (17,384) | (55.8%) |
Beauty care | 38,294 | 30,193 | 12,965 | (17,228) | (57.1%) |
operating income | |||||
POLA | 32,574 | 25,529 | 10,927 | (14,602) | (57.2%) |
ORBIS | 9,340 | 9,252 | 7,329 | (1,923) | (20.8%) |
Jurlique | (3,763) | (2,968) | (2,489) | 479 | - |
H2O PLUS | (552) | (825) | (724) | 100 | - |
Brands under development | 695 | (794) | (2,076) | (1,282) | - |
Note : Consolidated operating income and loss for each brand are shown for reference purpose only (figures are unaudited)
23
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POLA ORBIS Holdings Inc. published this content on 28 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2021 06:22:00 UTC.