Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — FY2009 Earnings Presentation
34 slides from Autobacs Seven's earnings presentation, May 18, 2009
Slide 1: Analyst Meeting: Current Trends and Future Outlook
ANALYST MEETING Current Trends and Future Outlook with results of fiscal year ended March 31, 2009 “Anything car-related, you find at AUTOBACS” May 18, 2009 Setsuo Wakuda Representative Director and CEO
Slide 2: Contents
Contents I. CONSOLIDATED FINANCIAL RESULTS OF THE FISCAL YEAR ENDED MARCH 31, 2009 ¾Posted earning decline due to fundamental changes in the operating environment ¾Posted extraordinary losses by implementing series of strategic initiatives in line with the mid-term business plan II. FINANCIAL ESTIMA
Slide 3: I. Consolidated Financial Results of the Fiscal Year Ended March 31, 2009
I. CONSOLIDATED FINANCIAL RESULTS OF THE FISCAL YEAR ENDED MARCH 31, 2009 2
Slide 4: Financial Results
FINANCIAL RESULTS (Billion Yen) Fiscal year ended March 2009 Estimate Results FY Mar 08 Change from the results YoY % of Sales % of Sales original estimate (%) (Amount) % of Sales Net Sales 282.0 259.1 -7.2 -22.8 266.4 ▲ 2.7% Gross 88.0 81.1 -1.6 -6.8 82.8 Margin 31.2% 31.3% ▲ 2.0% 31.1% SG&A 81.0 7
Slide 5: Financial Results: Summary - Decline of Revenue and Earning
FINANCIAL RESULTS: SUMMARY DECLINE OF REVENUE AND EARNING The Group posted huge earning losses for the year by implementing series of strategic initiatives, the result of which, however, is bringing improvement in its performance from the next fiscal year. 1. Net sales were negatively impacted by ch
Slide 6: Financial Results
FINANCIAL RESULTS (Billion Yen) Fiscal year ended March 31, 2009 FY Mar 08 Results results (% of Sales) YoY Major factors of increase/decrease (% of Sales) Net Sales 259.1 -2.7% ▲Poor automotive goods sales in Japan, especially in winter goods, car 266.4 audio and car sports goods. ▲Sales reduction
Slide 7: Extraordinary Losses
EXTRAORDINARY LOSSES Amount Major items of extraordinary losses (in billion yen) Business restructuring expense and other (U.S. subsidiaries) 5.39 Overseas business Impairment loss on goodwill and other (French subsidiary) 3.17 Loss on sales of shares of affiliates (Taiwanese subsidiary） 0.14 Loss o
Slide 8: Performance of Subsidiaries
PERFORMANCE OF SUBSIDIARIES (Billion Yen) Fiscal year ended March 31, 2009 Change FY Mar 08 Original from results Results YoY estimates original estimates Domestic retail sales Net Sales including FCs 296.2 -2.9% 304.9 Net Sales 212.0 199.0 -2.6% -6.1% 204.2 Non-consolidated Ordinary Income 9.60 8.5
Slide 9: Performance of Subsidiaries
PERFORMANCE OF SUBSIDIARIES Non-consolidated (Billion Yen) Decrease: Car electronics devices and Net Sales Wholesale -5.47(-2.9%) motorsports goods 199.0 Increase: New store opening (YoY: -5.28) Retail +0.15(+1.3%) Decrease: Car electronics and Car sports Gross Margin Whole Sale -1.49(-4.1%) Decreas
Slide 10: Geographical Segments (Overseas)
GEOGRAPHICAL SEGMENTS (Overseas) U.S.A. FRANCE ASIA Number of Stores 83 12 17 (at Mar 31, 2009) Taiwan：▲0.1% Comparable West Coast：▲26.7% Singapore：▲3.1% store sales +2.8% STRAUSS：+7.2% Thailand：+4.6% (yoy change rate) China：+11.3% Net Sales (billion yen) 15.7 7.8 3.3 Operating Expenses 18.0 8.3 3.5
Slide 11: Balance Sheet / Assets
BALANCE SHEET / Assets TOTAL ASSETS 234.1 billion Yen 224.1 billion Yen Cash and deposit 37.6 Trade notes and 39.1 Major items changed account receivables 19.3 Buildings and structures: -8.5 15.4 Lease investment 23.6 assets mainly change to lease 23.4 Marketable 16.2 investment account Securities 1
Slide 12: Balance Sheet / Liabilities & Net Assets
BALANCE SHEET / Liabilities & Net Assets TOTAL LIABILITIES AND NET ASSETS 234.1 billion Yen 224.1 billion Yen Trade notes and accounts payable 17.7 2.8 ST borrowings 16.4 Major items changed 23.0 and current portion 3.3 of bond •Allowance for business Other ST liabilities 25.0 15.0 restructuring: 10
Slide 13: Retail Sales Including FC
RETAIL SALES INCLUDING FC* RETAIL SALES INCLUDING FCs: 296.2 billion yen (down by 2.9% YoY) (billion yen) 350 305.0 296.2 Statutory safety inspection revenue**: 300 10.9 12.2billion (+12.4% YoY) 12.2 No. of cars inspected：387,000cars (+ 15.4% YoY) 16.8 16.5 No. of fully certified & designated stores
Slide 14: Retail Sales Trend
RETAIL SALES TREND TREND OF SALES AND NUMBER OF PURCHASING CUSTOMERS (yoy) (%) 20.0 gasoline price hike deepening economic slump / decline in automobile sales 15.0 •reinforced PND sales counter ETC sales sales boosted by sharply 10.0 tire discount •point alliance program started •additional economic
Slide 15: Sales by Merchandise
SALES BY MERCHANDISE SALES INCREASES AND DECREASES (yoy, total store basis) (Million Yen) 2,500 ETC devices: +3,500M Yen Snow tires: -600M Yen GPS：-2,200M Yen sales increased Car audio: -3,500 MYen due to price Normal tires: -400M Yen Car Electronics 1,500 hike Parts Maintenance Motor Sports Accesso
Slide 16: Store Opening and Closing
STORE OPENING AND CLOSING Domestic store No. of Fiscal year ended March 31, 2009 No. of Store stores at stores at Type Mar 31, 1st-half (result) 2nd-half (plan) Mar 31, 2008 New AB⇒SA S/B ･R/L Close New AB⇒SA S/B ･R/L Closed 2009 AB 399 ＋2 ▲2 ＋2/▲2 ▲2 ＋2 ＋5/▲5 ▲2 397 SA 74 ＋2 77 AH 10 ▲2 8 SH 31 ＋1
Slide 17: II. Financial Estimates for the Fiscal Year Ending March 31, 2010
II. FINANCIAL ESTIMATES FOR THE FISCAL YEAR ENDING MARCH 31, 2010 16
Slide 18: Financial Estimates (Consolidated)
FINANCIAL ESTIMATES (Consolidated) (Billion Yen) Fiscal year ended Fiscal year ended March 31, 2010 （Estimates） March 31, 2009 Results 1st-half 2nd-half Full Year YoY (% of sales) (% of sales) (% of sales) (%) (% of sales) Net Sales 259.1 112.6 116.7 229.3 ▲29.8 ▲ 11.5% Gross Profit 81.1 35.9 37.6 7
Slide 19: Financial Estimates: Summary - Revenue Decline and Earning Growth
FINANCIAL ESTIMATES: SUMMARY REVENUE DECLILNE AND EARNING GROWTH 1. Business conditions may remain challenging ¾ sales of car goods (especially luxury items) are likely to remain weak. On the other hand, statutory safety inspections and maintenance services are expected to grow in its demand. 2. Ear
Slide 20: Subsidiaries' Performance Estimates
SUBSIDIARIES’ PERFORMANCE ESTIMATES (Billion Yen) Fiscal year Fiscal year ended March 31, 2010 （Estimates） ended March 31, 2009 1st-half 2nd-half Full Year YoY Results Non- Net Sales 1,99.0 94.2 95.8 1,90.0 ▲4.5% consolidated Ordinary Income 8.56 5.10 5.40 10.50 +22.6% Domestic store Net Sales 76.2
Slide 21: Financial Estimates: Major Points
FINANCIAL ESTIMATES: MAJOR POINTS ● RETAIL SALES GROWTH RATE (yoy, total store basis*): 1st-half 2nd-half Full year Auto parts and goods ▲1.2% ▲2.5% ▲2.0% Statutory safety inspection and maintenance services +10% +10% ＋10% TOTAL RETAIL SALES ▲1.0% ▲2.0% ▲1.4% ※include sales of AUTOBACS, Super AUTOBA
Slide 22: Financial Estimates: Major Points
FINANCIAL ESTIMATES: MAJOR POINTS ● DOMESTIC STORE SUBSIDIARIES Net sales: flat yoy is expected on same store sales. Sales are estimated to increase due to the increase in the number of stores Gross margin: estimated to improve due to change in merchandise mix and consolidation of store subsidiaries
Slide 23: Business Improvement Measures
BUSINESS IMPROVEMENT MEASURES ● DOMESTIC FRANCHISE BUSINESS 1. Automotive parts and goods sales ¾ Improve sales counters of stores from the viewpoint of customers (review of sales counter and assortment) ¾ Reinforce customer relation using direct marketing through telephone calls and internet ¾ Impr
Slide 24: Operating Income Targets
OPERATING INCOME TARGETS IMPROVEMENT OF OPERATING INCOME Improvement from (Billion Yen) domestic wholesale 10 business (gross margin and costs) 9 0.9 8 - 1.0 1.0 7 3.1 Decrease of Profit 6 car goods improvement 5 sales of domestic Withdrawal of store 9.0 4 subsidiaries overseas 3 business and 5.0 do
Slide 25: Store Opening and Closing in FY Mar 2010
STORE OPENING AND CLOSING IN FY MAR 2010 Domestic store No. of Fiscal year ended March 31, 2010 （Estimates） No. of stores at 1st-half 2nd-half stores at Store Type Mar 31, Mar 31, 2009 New AB⇒SA S/B ･R/L Close New AB⇒SA S/B ･R/L Close 2010 AB 397 ＋1 ＋1 ＋2/▲2 ▲1 ＋2/▲2 ▲1 397 SA 77 ▲1 ＋1 77 AH 8 8 SH
Slide 26: Dividend Plan
DIVIDEND PLAN RESULTS AND PLAN OF DIVIDEND (Yen per share) 3% 300% 140 260.6% 250% 120 100 100 100 2.4% 2.4% 2.3% 100 2% 200% 80 150% 58 1.4% 60 52 1.2% 1% 65.7% 100% 40 20 24.7% 24.3% 50% ※ 0 0% 0% Mar 06 Mar 07 Mar 08 Mar 09 Mar Mar 06 Mar 07 Mar 08 Mar 09 Mar 10(E) 10(E) DOE Payout ratio SHARE BU
Slide 27: III. Future Direction of the Group's Business
III. FUTURE DIRECTION OF THE GROUP’S BUSINESS 26
Slide 28: Progress Toward the Vision
PROGRESS TOWARD THE VISION FY March 2008 FY March 2010 to FY March 2009 and before FY March 2011 - economy shift from - sluggish consumer spending - economic slump deepening uptrend to downtrend - shift in consumer taste to low - demand drop for luxury items Operational - sales decline of car price
Slide 29: Priority Issues for Management
PRIORITY ISSUES FOR MANAGEMENT RE-BOLSTERING DOMESTIC FRANCHISE BUSINESS through... 1. Commitment and pursuit of customer satisfaction 2. Quick response to the changing customer portfolios and demands z review and upgrade of sales counters, store types and merchandise line-ups z training and activat
Slide 30: Appendix
APPENDIX 29
Slide 31: Performance Results of Franchisees
PERFORMANCE RESULTS OF FRANCHISEES ORDINARY INCOME OF FRANCHISE COMPANIES (Billion Yen) 8.0 Profit-making Loss-making 6.0 5.8 Ordinary income(Gross) 4.0 2.9 2.5 2.1 2.0 0.5 0.0 -2.0 FY Mar 2005 FY Mar 2006 FY Mar 2007 FY Mar 2008 FY Mar 2009 Notes) Three listed companies are not included. Franchise
Slide 32: Review of Business Portfolio
REVIEW OF BUSINESS PORTFOLIO Overseas business Current status AUTOBACS U.S.A., INC filed petitions under Chapter 11 of the U.S. Bankruptcy Code AUTOBACS STRAUSS INC Taiwan completion of transfer France continue present operation China rebuild business model Thailand continue present operation Singap
Slide 33: Restructuring of Functional Subsidiaries
RESTRUCTURING OF FUNCTIONAL SUBSIDIARIES before consolidation after consolidation there major functions there were 10 companies are 5 companies AUTOBACS Management Service Financial agency service to FCs AUTOBACS Management Service A.B. Consulting Management service to FCs merger Installment loan an
Slide 34: Forward-Looking Statements
“Anything car-related, you find at AUTOBACS” Forward-Looking Statements These materials include forecasts regarding the Company’s future plans, strategies, and performance. This information is based on judgments and estimates made in accordance with information currently available. Actual results ma