First-Half Results and Full-Year Outlook for the Fiscal Year Ending March Shinzo Maeda President & CEO Shiseido Co., Ltd. 1

Transcription

1 First-Half Results and Full-Year Outlook for the Fiscal Year Ending March 2010 Shinzo Maeda President & CEO Shiseido Co., Ltd. 1

2 First-Half Results for the year ended March 2010 Results YoY change Local currency Difference from initial forecast (billion yen) Difference from previous forecast Net sales % -6.5% Domestic % Overseas % -3.5% % Operating income Ordinary income % Net income % Overseas sales ratio 34.5% -2.5pp Operating margin 7.2% -2.2pp First-half actual exchange rates US$: 95.5 Euro: Chinese yuan:

3 Domestic Cosmetics Sales: by Division 2009/9 Results YoY % change Cosmetics -7.5% Counseling -7.4% * Self-selection -7.6% Toiletries -8.0% Professional -9.5% Healthcare -3.7% Non-Shiseido etc. +1.8% Total -6.7% * Counseling includes cosmetics sales by The Ginza. The amount for 2009/9 is 1.5 billion yen. Operating income -14.1% -3.4 billion yen OP margin 10.2% -0.8 pp 3

4 Overseas Cosmetics Sales: by Division 2009/9 Results YoY % change Local Currency Cosmetics -15.7% -1.1% Professional -29.2% -18.1% Total -17.5% -3.4% Operating income -87.5% -7.4 billion yen OP margin 1.0% -5.4pp [Reference: Sales by Geographic Segment] *including overseas sales included in Others in Sales by Business Segment 2009/9 Results YoY % change Local Currency Americas -20.0% -10.5% Europe -27.5% -8.8% Asia/Oceania -8.7% +3.8% Total -17.5% -3.5% 4

5 Full-Year Outlook for the Year Ended March 2010 (billion yen) Outlook YoY change Local currency Difference from initial forecast Difference from previous forecast Net sales % Domestic % Overseas % +3% +7-2 Operating income % Ordinary income % Net income % Overseas sales ratio 36.5% -1.5pp Operating margin 7.7% +0.5pp Exchange rate assumptions for full year US$: 93.6 Euro = Chinese yuan: 13.6 Exchange rate assumptions for period from October to December US$: 90.0 Euro: Chinese yuan: 13.0 (Initial exchange rate assumptions for full year US$: 90.0 Euro: Chinese yuan: 13.5) 5

6 Second-Half Outlook for the Year Ended March 2010 (billon yen) Outlook YoY change Local currency Difference from previous forecast Net sales % Domestic % Overseas % +9% -2.6 Operating income % Ordinary income % Net income 13.2 (-0.7) Overseas sales ratio 38.3% - 0.7pp Operating margin 8.2% +3.4pp Exchange rate assumptions for the second half US$: 91.8 Euro: Chinese yuan:

7 Initiatives in FY2009 Steadily work towards achieving our objective of becoming a global player representing Asia with its origins in Japan within ten years, as set out in our new three-year plan. Domestic Overseas Step up distinction and concentration and continue to strengthen our basic sales force and enhance Shiseido brand value through marketing. Enhance our fundamental power. Put more effort into global operations centering on Asia. Lay foundations for future growth. 7

8 Key Initiatives in the Second Half of FY2009 (Domestic) Narrow down the brands/lines and stores in each sales channel we want to concentrate on bolstering and concentrate on specified priority areas. Stores Voluntary chain store Power Shop Department stores Structured retailers Drug stores Lines merchandise domains BENEFIQUE REVITAL GRANAS Relationship building domain >>High price range skincare TSUBAKI AQUALABEL (AQL) UNO Self-selection/toiletry domains >>Low price range haircare, skincare and men s products 8

9 Bolstering the Sales Capacity to the Drug Store Channel Bolsetering the Sales Capacity Next-Generation Store Planning Negotiated standard space and special counter to coincide with TV advertising campaign for Fog Bar. Next-Generation Store Planning initiative in collaboration with store chains Nationwide deployment of counters for seniors 9

10 Rejuvenating the Global Brand Shiseido Bolstering counters Bolstering merchandise Newly designed counters will be introduced in 45 stores within the year. Future Solution LX Symbolic sign Strengthening BC activities Future Solution LX being sold over the counter 10

11 Entering New Markets We entered the markets of Egypt, Morocco, Laos, and Azerbaijan in the current fiscal year. We are gearing up to enter more markets and to expand operations in other markets. Sales have been growing in Russia. We have entered new markets in Africa, including Morocco. 11

12 Maintaining Momentum in China Operations Department store channel MAQUILLAGE and Aupres makeup lines that we focus this fiscal year are enabling us to acquire 1980s generation customers and expand sales. Cosmetic specialty store channel The total number of stores was 4,300 at the end of September. Same-store sales continue to record double-digit growth. Website for a new Aupres makeup line Cosmetic specialty store Masstige brands, such as Pure Mild and Za, targeting the middle-income group are recording high growth. Pure Mild Za 12

13 Shareholder Returns Policy Flexibly buy back/retire the Company s shares while mainly deliver shareholder returns through the payment of dividends Total consolidated shareholder return ratio: 60% in mid-term Dividends (yen) First half Second half (E) Pay interim and year-end dividends of 25 yen each and an annual dividend of 50 yen (same as FY2008) FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Buyback of Company s shares and total shareholders return ratio: Bought back 4 million shares worth 6.75 billion yen in May. Total shareholders return ratio is expected to be 86%. 13

14 Appendix for the Financial Results of the First Half Ended September 30, 2009 (millions of yen) Year Ending 2010/3 (Estimate) Increase/Decrease over Previous Year Amount % Change Period Ended 2009/9 (Results) Increase/Decrease over Previous Period Amount % Change Capital Expenditure * 32, , , Tangible Fixed Assets (Investment) 18, , Intangible Assets and Others 13, , , Depreciation and Amortization 26,000-2, ,862-1, Tangible Fixed Assets (Investment) 17, , Intangible Assets and Others 9,000-2, ,369-1, R&D Expenses 14, , Advertising Expenses 47,500-5, ,673-5, * Capital expenditure includes investment to tangible assets and intangible assets other than goodwill, and longterm prepaid expenses. 14