4927 pola orbis holdings inc. - triaslin.trias.co.jp/en/report/doc/9/4927_polaorbis...
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YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 1
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
【Summary】
Established in September 2006 and founded on its cosmetics operations, POLA ORBIS
HOLDINGS INC. (hereinafter “POLA ORBIS Group” or “the Company”) is a provider of health
and beauty products. While POLA and ORBIS comprise the Company’s two flagship skincare
brands of its centerpiece beauty
care business, it also offers an
array of unique brand products.
In addition, POLA Chemical
Industries, Inc. (hereinafter POLA
Chemical)—with its strength in
anti-aging and skin whitening
base technologies—is primarily
responsible for the research,
development and manufacture of
these brands.
Shinobu Suzuki established the
Company in Shizuoka prefecture in
1929. POLA was founded on the
entrepreneurial spirit to personally
deliver the finest products tailored
to meet the individual needs of every customer—a spirit that continues to inform the core corporate
values of POLA to this day, “Respecting the Individual”, “Finest Hospitality” and “Beyond Quality”.
Today, the POLA ORBIS Group is engaged in the task of becoming a high-profit global
enterprise based on its management philosophy of “Inspire all people and touch their hearts”.
Satoshi Suzuki—the founder’s grandson and current CEO of the Company—had taken the
necessary steps in rebuilding its flagship brands even before the transition to a holding
company. Having made the transition in 2006, POLA ORBIS began to accelerate development
of new brands. In addition, it acquired H2O PLUS, an American cosmetics firm specializing in
4927
TSE 1st
Section
POLA ORBIS HOLDINGS INC.
Inspire all people and touch their hearts ~Staying true to its founder’s legacy, the Company aims to become
a highly profitable global enterprise in the pursuit of beauty
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 2
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
marine-based skincare products, in July 2011. And in February 2012, the Company also
purchased Jurlique, an Australian provider of natural, high performance skincare products,
thereby improving its portfolio of both domestic and foreign brands.
By undertaking initiatives to strengthen its domestic operations and globalize its brand portfolio, the
POLA ORBIS Group is committed to achieving by 2020 net sales of more than \250 billion,
overseas sales ratio of more than 20% and operating income ratio of 13-15%—enacting a dramatic
leap forward in both scale and quality.
History of the POLA ORBIS Group
POLA: Core Brand Embodying Founding Spirit
In order to realize his goal of personally delivering the finest products that are tailored to meet the
individual needs of every customer, POLA founder Suzuki opted to create and develop cosmetics himself
and market them by visiting customers at their own homes. In 1940, Suzuki established the predecessor
of POLA Chemical, which currently develops and manufactures products of the POLA ORBIS group. In
1946, he launched the predecessor of POLA Inc. (hereinafter POLA), which handles the flagship POLA
label cosmetics. He gradually expanded a nationwide marketing network of so-called “POLA Ladies”,
who carried out door-to-door sales, while creating an R&D and manufacturing regime that enables POLA
to continue catering to the personalized needs of individual customers.
In the 1980s, demand for beauty products increased as the quality of life and standard of living rose in
tandem with Japan’s economic miracle. Against this backdrop, POLA entered the fashion industry in
1981 and expanded its lines of business; in 1989, moreover, POLA began selling its brands through
department stores, launching a sales channel that did not exist before.
Launch of Second Flagship Brand, ORBIS
During this period of unprecedented prosperity, it became clear that sustaining the original business
model would become increasingly difficult as women were entering the workforce in greater numbers and
ensuing lifestyle changes meant that fewer women remained at home to visit—diminishing opportunities
to develop new customers and inhibiting future growth. In response to such market changes, POLA,
which was then headed by President Tsuneshi Suzuki, the founder’s son, launched the ORBIS brand
featuring oil-free skincare products in 1984. The brand was the first among domestic competitors offering
products in the middle-tier price range and sold exclusively by mail order catalogue. In doing so, the
POLA brand was strategically excluded in order to clearly differentiate the label from ORBIS.
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 3
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
The ORBIS mail-order system
was launched at a time when
the prevailing consumer
perception was that ordering
through catalogues was
inconvenient. In spite of this,
ORBIS would go on to perfect a
system that extended from
order processing and product
delivery to payment collection
and follow-up services, building
up an extremely advanced and
comprehensive management
regime. It exploited this know-
ledge and experience base
when it was one of the first major Japanese companies to launch a Web-based sales channel in 1999.
Market Development through New Brand Portfolios
In 1992, pdc, a brand designed
for general sales through such
retail outlets as drug stores and
variety shops, was launched.
Beginning with its investment in
Future Labo Inc., a brand
dedicated to TV shopping
channels, the Company rolled
out a series of new brands
under development, including
decencia, ORLANE and
THREE (ACRO Inc.).
The Company has been
developing these brands on a
comprehensive basis, targeting specific user segments, tailoring performance, brand value, price ranges
and marketing strategies to each segment, based on the recognition that user needs are growing
increasingly diverse as luxury goods markets such as cosmetics become increasingly mature.
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 4
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
Positioning of POLA ORBIS Group in Japan’s Cosmetics Market
Market Trends in Skincare Products
According to data compiled by the Ministry of Economy, Trade and Industry, cosmetic sales in Japan
reached \1.4 trillion in 2011. As seen in Chart 1, while the market remained flat from 2005 to 2008, hovering
at some \1.5 trillion, it regressed in the wake of the Lehman Bros. collapse. Nevertheless, sales from
skincare products—the core market for POLA ORBIS Group—has remained relatively stable. As a result,
skincare products accounted for slightly less than 45% of total cosmetics sales in 2010, up from the
43%-level recorded since 2005.
【Chart 1】 Sales Trend of Domestic Cosmetics Market
41.0% 43.6% 44.6% 43.8% 43.9% 43.1% 43.9% 43.8% 44.9% 44.6%
0
300,000
600,000
900,000
1,200,000
1,500,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
(\million)
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Skin care Non skin care Ratio of skin care
Source: Ministry of Economiy, Trade and Industry; compiled by Trias Corporation
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 5
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
Positioning of POLA ORBIS Group
In this context, the POLA ORBIS group, as seen in Table 1, is the third largest cosmetic manufacturer in
terms of sales in fiscal 2011. It is the second largest player, after KOSÉ Corporation, in terms of operating
income ratio.
【Table 1】
Operation Scale of Major Cosmetics Makers based on Actual Results for Fiscal 2011
Overall SalesShiseido
Company, LimitedKao Corporation
POLA ORBIS
HOLDINGS INC.KOSÉ Corporation
Securities code 4911 4452 4927 4922
Fiscal term FY3/12 FY3/12 FY12/11 FY3/12
Net sales for cosmetics
(unit: \million)673,467 537,937 141,453 125,385
Operating income
for cosmetics
(unit: \million)
37,671 15,411 11,192 13,253
Operating margin
for cosmetics
(before internal transfers)
5.6% 2.9% 7.9% 10.6%
Intended segmentDomestic cosmetics/
Global businessBeauty care
Cosmetics in Beauty
Care BusinessCosmetics
Source: Each company; compiled by Trias Corporation (Net sales = Sales to outside customers)
As seen in Table 2, POLA tops the list of cosmetics companies engaged in door-to-door sales, while ORBIS
ranks third in mail order and Web-based sales.
【Table 2】 Major Companies in Door-to-Door and Catalog & Online Sales
Door-to-Door Sales POLA INC.Nippon Menard
Cosmetic Co., Ltd.
Noevir Holdings
Co., Ltd.Avon Products
Securities code 4927 Unlisted 4928 Unlisted
Fiscal term FY12/11 FY3/11 FY9/11 FY12/10
Net sales
(unit: \million)97,353 54,360 24,581 16,967
Total employees1,311
(as of Dec. 31, 2011)1,100
131(consolidated: 1,931)
(as of Mar. 31, 2012)
444(as of Nov. 30, 2011)
Catalog & Online Sales DHC CorporationFANCL
CORPORATIONORBIS Inc.
Dr. Ci:Labo
Co., Ltd.
Securities code Unlisted 4921 4927 4924
Fiscal term FY7/11 FY3/12 FY12/11 FY7/11
Net sales
(unit: \million)103,176 88,165 47,918 36,233
Total employees2,790
(as of Oct. 21, 2011)721
1,311(as of Dec. 31, 2011)
Consolidated: 695
Nonconsolidated: 628
(as of Jan. 31, 2012)
Source: Each company; compiled by Trias Corporation
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 6
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
Characteristics and Competitive Strengths of Flagship Brand POLA
The three corporate values as envisioned by POLA founder Suzuki are “Respecting the Individual”,
“Finest Hospitality” and “Beyond Quality”. How these values underpin its business model and operating
foundations are examined below.
“Respecting the Individual”
POLA continues to place great respect to the individual—that every POLA branch chief, POLA director
and each POLA Lady personally assume responsibility to engage each customer and serve them in their
pursuit of beauty. They are driven to do so out of the company’s fundamental service policy mandating
POLA Ladies to derive joy from that which inspires joy in people, which the founder advocated.
The sales system comprised of the“POLA Ladies”is characterized by their firm understanding of the
POLA brand and value of its product lineup, as well as by a highly evolved network based on
commissions and highly motivated staff. This system—which carries forward the founder’s ideals and his
commitment to serve in every customer’s pursuit of beauty, goals embraced by the entire sales
staff—has proved its efficacy for several decades now.
This network (which counts among its staff a POLA director in his 90s) is not comprised of POLA
employees, but by individual entrepreneurs based on a sales commission contract. Today, the network
boasts over 135,000 POLA Ladies and is supervised by 4,500 POLA directors, with 160 POLA branch
chiefs managing its sales offices. POLA directors manage units that generate monthly sales of \1.5
million, while POLA branch chiefs oversee units generating monthly sales of \10 million—imbuing the
sales network with the proper business orientation and significant revenue generating muscle.
These individual entrepreneurs have been able to sustain this network over time because POLA and
POLA Ladies have maintained close communication and coordination. POLA has currently divided the
nation into 24 areas and deployed POLA employees as support staff in each area. As part of their
operating brief, the managers and staff members assigned to an area hold routine discussions with
POLA branch chiefs and directors—who, in turn, hold constant discussions with the POLA Ladies they
manage—on sales trends and the issues they pose.
“Finest Hospitality”
Among the maxims that have been handed down over the years at POLA is this:“We sell the process of
becoming beautiful; our products are merely a service.”Thus, POLA Ladies do not engage in the simple
peddling of goods: their task is to provide customers with optimal solutions through individual
counseling—in other words, to extend women the finest level of hospitality in their pursuit of beauty.
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 7
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
Esthetic treatment services were also incorporated to add further value to the Company’s finest
hospitality.
In recent years, POLA has added another sales channel to its existing home visitation-type sales
(hereinafter “conventional sales model”). The new channel, based on a network of clinic-outlets and
known as POLA THE BEAUTY model (hereinafter“PB”), integrates counseling services, cosmetic
products and esthetic treatment, and is proving successful. As seen in Chart 2, the network was
comprised of 533 clinics as of FY12/11, an increase of 33 outlets on a year-on-year basis, and sales
generated by the new PB model exceeded that generated by the conventional sales model. As a result,
the number of sales branches—which had been on a downward trend, hitting bottom in FY12/10—has
reversed itself in FY12/11. By the fiscal year’s end, the number of sales branches is expected to reach
4,553, a gain of 31 branches versus the previous year.
【Chart 2】 Net Sales Composition Ratio by POLA’s Sales Channel
20%30%
40%50%
40%40%
40%
50%30% 30%
20%
0%
20%
40%
60%
80%
100%
FY12/05 FY12/08 FY12/10 FY12/13 Forecast
(Composition
ratio)PB (POLA THE BEAUTY) Esthe Inn Door-to-door sales
With the success of the PB model, POLA has begun detecting changes in its customer demographic.
While the customer base of the conventional sales model has been contracting with the advance of
Japan’s aging population, the Company has seen a greater number of women in their 20s and 30s
comprising its PB customer base. As a result, customer growth has stabilized, while more and more
younger women are registering to become POLA Ladies.
Nevertheless, POLA does not believe that the aforementioned trends spell the end of the conventional
sales model. Instead, it sees the need to meet the increasingly diverse needs and lifestyles of women
in Japan through a variety of services and sales channels in order to continue providing optimal levels of
hospitality.
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 8
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
Obviously, adjusting the Company’s business model to cater to changes in its operating environment is
no easy task. What makes it possible is the commission-based network of POLA Ladies, a highly
motivated sales corps that has remained committed to assisting every customer in their pursuit of beauty
for many years. Thus, POLA’s strength lies in respecting the individual and the finest hospitality, and
a corporate regime enabling it to sustain these qualities, regardless of the changes made to its sales
channels; it is what differentiates the Company from all other competitors.
“Beyond Quality”
POLA Chemical—whose R&D and manufacturing excellence has proven indispensable to the POLA
brand—has been central in the Company’s pursuit of proprietary, beyond quality, wondrous and moving
beauty backed by science for decades. Today, POLA Chemical develops and produces over 3,000
cosmetics and health food products, not only for the POLA and ORBIS brands, but also the full array of
other domestic brands as well, serving as a crucial base for the POLA ORBIS Group’s R&D and
manufacturing needs.
One of the key strengths of POLA Chemical is its ability to scientifically process effective skincare agents
and has demonstrated exceptional expertise in the anti-aging and skin whitening fields. Some 250
researchers are engaged in basic and applied R&D, resulting in numerous patents, both pending and
applied, as well as actively delivering presentations at international conferences and submitting papers to
professional journals worldwide.
Among POLA Chemical’s representative research findings has been Rucinol®, a highly effective
nonmedical skin whitening agent that gained considerable market recognition. POLA Chemical
researchers had to examine several hundred plant extracts before discovering an effective agent in
Siberian pine. They then isolated the agent, enhanced its properties, and developed a process that
inhibits tyrosinase, an enzyme the forms melanin. While other cosmetics companies have also conducted
research in melanin formation, POLA Chemical was the first to develop a melanin formation inhibitor.
As of January 2012, POLA Chemical has accumulated over 13 million skin samples that were collected
as a result of POLA’s counseling service and collated data from them. Based on this data, the company
has been engaged in research in order to develop leading-edge skin analyses technologies, which it
believes will lead to extrapolate parameters for future skincare products tailored to meet the needs of
customers on an individual basis.
As a result of its record of achievement, POLA Chemical has built up an extensive knowledge base,
ranging from the development of prescription pharmaceuticals and R&D for ease-of-manufacturing
expertise, to the development engineering of safe products and health science research—all this in
addition to its fundamental strength in basic research.
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 9
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
2020: Emerging as a High-Profit Global Enterprise
Securing Stable Profits for Core Brands
When Satoshi Suzuki assumed the CEO post of the POLA ORBIS Group in January 2000, one of the first
steps he took was to reaffirm the Company’s founding management philosophy—that POLA was
dedicated to meeting the individual needs of every customer. He also adopted “Counseling First” as
a company-wide commitment. And from that time a significant transformation took place in the
Company’s operations. First, in order to rejuvenate its conventional sales model, it began engaging in the
process of selection and consolidation. As explained earlier, the transition from the conventional model to
the clinic-outlet model that features esthetic treatment and integrates counseling services and cosmetics
products, began with the establishment of PB from 2005. Having embraced the holistic concept of the
interrelationship of skin, mind and body, and how these elements play a vital role in beauty and health,
the Company is able to provide comprehensive solutions that range from cosmetics to health food and
esthetic treatment.
At the same time, ORBIS was launched in 1980s as a mail-order brand and has since developed into
a major market presence. Yet, with the passage of time, the user age demographic has changed, as
have their needs. To respond to these market changes and promote user loyalty on a long-term basis,
ORBIS is undertaking initiatives to enhance added value and rebuild its brand by introducing the element
of aging care to oil-free product concepts.
In addition, the Company has been bolstering its logistics infrastructure. In February 2012, it opened
a distribution center in western Japan, effectively expanding its logistic network to encompass the entire
nation. It is currently in the process of building a distribution system that will ensure next-day delivery of
products nationwide, with completion expected some time this fall.
Leveraging Group Strengths for Overseas Operations
By rebuilding the strength of its core brands in order to secure stable revenue sources, the POLA ORBIS
Group aims to reallocate the cash flow that is consequently generated to facilitate the globalization of Group
operations. Specifically, this means the Company, based on its present brand portfolio, is looking forward to
greater synergy to develop between its distribution and R&D operations in the next ten years. It also intends
to capitalize on the data derived from the 13 million-plus skin samples retained by POLA Chemical as part
of its push into foreign markets, positioning neighboring populations in East Asia as strategic markets due
to the similarities in skin quality they share with the Japanese. As the first step in its globalization process,
the Company has begun to sell its POLA brand on an organized basis in China, while marketing its ORBIS
brand through the Web. It has also commenced counseling-based sales in Russia and surrounding regions.
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 10
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
The two overseas brands, H2O
PLUS and Jurlique, POLA
ORBIS acquired in 2011 and
2012 have already established
a presence in the United States
and Europe, and their
penetration of the East Asian
markets are accelerating. Both
brands—one marine-based and
the other, organic—are gaining
recognition, particularly among
affluent Chinese consumers, as
premier skincare products
developed from natural ingredients. The Company aims to step up coordination with POLA Chemical, which
is in charge of technology development in Japan, in the R&D field.
Engaging in Japanese Manufacturing, Hospitality Worldwide
From FY12/11, the POLA ORBIS Group began to push forward its management plan to become as a
high-profit global enterprise. As mentioned earlier, the Company aims to achieve net sales of more than
\250 billion, overseas sales ratio of more than 20% and industry-leading operating income ratio of
13-15% by 2020—a goal accomplished by first securing stable growth in the domestic market and, with
that as its foundation, to establish bridgeheads into East Asia with its core brands, while offering global
brands in both Japan and abroad acquired through M&A and alliances.
The POLA ORBIS Group continues its commitment as a provider of products and hospitality services in
order to facilitate the individual beauty requirements of every customer. Since POLA was established in
1929, the Company has faithfully carried forward the ideals and aspirations of its founder, while instituting
changes in response to changes in the market. Today, in striving to become a global enterprise active
in markets throughout the world, POLAR ORBIS will need to overcome numerous challenges as it bids to
sustain growth in the years ahead. We look forward to the outcome.
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 11
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
The earnings forecast for FY12/12 the Company announced on May 1, 2012 is presented here
for reference.
【Table 3】 FY12/12 Consolidated Financial Forecast
1H 2H Full-Year 1H 2H Full-Year
Net sales 78,937 87,720 166,657 86,400 95,600 182,000
Operating income 5,534 7,319 12,853 4,700 9,100 13,800
Ordinary income 5,962 7,360 13,322 4,900 9,400 14,300
Net income 2,989 5,050 8,039 2,000 5,000 7,000
(\million)FY12/12 ForecastFY12/11
(\million)
Actual Composition Forecast Composition Amount Ratio
Beauty Care Net sales 154,778 92.9% 170,200 93.5% 15,422 10.0%
Operating income 10,787 83.9% 12,100 87.7% 1,313 12.2%
Operating margin 7.0% n.a. 7.1% n.a. - -
Real Estate Net sales 3,089 1.9% 2,900 1.6% (189) -6.1%
Operating income 1,283 10.0% 1,100 8.0% (183) -14.3%
Operating margin 41.5% n.a. 37.9% n.a. - -
Others Net sales 8,790 5.3% 8,900 4.9% 110 1.3%
Operating income 501 3.9% 300 2.2% (201) -40.1%
Operating margin 5.7% n.a. 3.4% n.a. - -
Reconciliations Operating income 280 2.2% 300 2.2% 20 7.1%
Total Net sales 166,657 100.0% 182,000 100.0% 15,343 9.2%
Operating income 12,853 100.0% 13,800 100.0% 947 7.4%
Operating margin 7.7% n.a. 7.6% n.a. - -
Note: FY12/12 forecasts announced on May 1, 2012.
Net sales for each segment include intersegment sales or transfers.
FY12/11 FY12/12 YoY Change
YAMATO
- Ethos of Japan-
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in the Memo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012 Trias Corporation All rights reserved. | 12
An investment research platform to support a Japanese Economic Renaissance June 1, 2012
Consolidated Key Stock Indicators / Financial Data and Business Results
No. of Shares Issued Dec-11 57,284,039 Total Assets (\million) Dec-11 193,027
No. of Treasury Stock Dec-11 2,000,000 Shareholders' Equity (\million) Dec-11 156,971
Market Value (\million) 1-Jun-12 124,306 Interest-Bearing Debt (\million) Dec-11 1,500
BPS (\) Dec-11 2,839.4 Equity Ratio (%) Dec-11 81.3
ROE (%) Dec-11 5.2 Ratio of Interest-Bearing Debt (%) Dec-11 1.0
ROA (%) Dec-11 4.2 Free Cash Flows (\million) Dec-11 10,957
PER (times) Dec-12 fcst. 17.1 Notes: ROE=Current Net Income÷Shareholders' Equity
PCFR (times) Dec-11 9.3 ROA=Current Net Income÷Total Assets
PBR (times) Dec-11 0.8 PCFR=Maket Value÷(Current Net Income+Depreciation)
Share Price (\) 1-Jun-12 2,170 Ave. Daily Volume=ADV for the last 12 months
Unit Share (shares) 1-Jun-12 100 Ratio=Interest-Bearing Debts÷Shareholders' Equity
Average Daily Volume (shares) 1-Jun-12 145,793 Free Cash Flows=Operating CF+Investment CF
Consolidated
(\million)Net Sales
Operating
Income
Ordinary
IncomeNet Income EPS (\) DPS (\)
FY12/08 170,838 10,868 9,371 6,559 127.91 20.00
FY12/09 162,332 9,706 10,372 4,059 79.16 20.00
FY12/10 165,253 12,270 12,247 7,086 137.36 40.00
FY12/11 166,657 12,853 13,322 8,039 145.43 45.00
1H FY12/12 fcst. 86,400 4,700 4,900 2,000 36.18 25.00
FY12/12 fcst. 182,000 13,800 14,300 7,000 126.62 50.00
Note: FY12/12 forecasts announced on May 1, 2012.
Stock Price Charts and RSI
0
50
100
150
200
250
300
0
500
1,000
1,500
2,000
2,500
3,000Share Price (Close)
1 Month Moving Average
3 Months Moving Average
RSI 14 Days Moving Average (RHS)
(Yen)
70
30
RSI
Source: Prepared by Trias Corp. with Bloomberg data.Note: RSI, Relative Strength Index, is the index representing the ratio of overbought or oversold share prices.
In general, over 70 in RSI shows overbought share price range, while below 30 shows oversold share price range.RSI=averaged share price appreciation for N days÷(averaged share price appreciation for N days
+averaged share price decline for N days) x100
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