Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — H1 FY March 2020 Earnings Presentation
45 slides from Autobacs Seven's earnings presentation, Oct 31, 2019
Slide 1: Analyst Meeting Results of the Six Months ended September 30, 2019
Translation Analyst Meeting Results of the Six Months ended September 30, 2019 October 31, 2019 AUTOBACS SEVEN CO., LTD.
Slide 2: Results of the Six Months and Forecasts for Second Half of FY March 2020
Results of the Six Months ended September 30, 2019 and Forecasts for Second Half of FY March 2020 Officer, Finance & Accounting, Legal and IR & PR Noritaka Hiraga
Slide 3: First Half of FY March 2020 Consolidated P/L
First Half of FY March 2020 Consolidated P/L (Billion Yen) Six months ended September 30, 2019 Six months ended Initial Actual YoY change Change from September 30, Forecast results ratio forecast 2018 Net sales 105.0 111.0 +13.8% +6.0 97.5 Gross margin 33.6 35.5 +15.3% +1.9 30.7 Gross margin ratio 3
Slide 4: Key Figures for the First Half of FY March 2020
Key Figures for the First Half of FY March 2020 Net sales YoY +13.8% Domestic AUTOBACS AUTOBACS SEVEN YoY +11.2%／ Wholesale +12.3% chain retail sales Gross Margin Ratio LY Gross Margin 32.0% ← 31.6% SG&A YoY +1.77 BY New consolidated +0.9 BY YoY subsidiary LY Operating Income 4.44 BY ← 1.5 BY Operat
Slide 5: Key points for the First Half of FY March 2020
Key points for the First Half of FY March 2020 ✓ Sales of tires increased significantly, partially because of the rush in demand caused by the consumption tax hike and the announcement of a price rise from October. ✓ Responding to press reports on tailgating incidents, sales of car electronics incre
Slide 6: Sales and profits by Reporting Segments
Sales and profits by Reporting Segments Sales Profits （Million Yen） （Million Yen） 100,000 8,000 91,035 7,735 H1 FY2019 81,021 5,394 6,000 80,000 H1 FY2020 4,000 60,000 2,000 255 235 40,000 0 -210 -121 18,045 -357 -786 20,000 14,357 -2,000 6,042 5,374 -2,997 -3,190 1,120 1,074 -4,000 0 Round down to
Slide 7: Segment Information
Segment Information (Million Yen) Six months Six months ended ended September September 30, YoY Summary 30, 2019 2018 Sales 91,035 81,021 +12.4% Sales and gross margin increased due to strong sales of Domestic Gross margin 28,777 25,063 +14.8% tires and dashcams. SG&A AUTOBACS expenses increased bec
Slide 8: Domestic AUTOBACS Business: Retail revenue improvement
Domestic AUTOBACS Business Retail revenue improvement ・ Expanded sales of Safety and Security merchandise Tires and wheels Dashcams Pedal Watcher ・ Converted franchisees into company-owned units 7 stores at Gifu, Nagano and Aichi prefecture(March 1, 2019) 8 stores at Kumamoto prefecture(November 1,
Slide 9: Domestic AUTOBACS Business: Revitalization of existing stores and new store format
Domestic AUTOBACS Business Revitalization of existing stores and development of new store format Before After Store renovation（59 stores finished in 1st half） JACK & MARIE Grandberrypark （Opening on Nov. 13, 2019) Development of human resources AUTOBACS GUYS 2019 AUTOBACS chain joint welcome ceremon
Slide 10: Overseas Business
Overseas Business ・ Strengthened wholesale of private brand products for overseas 8
Slide 11: Car Dealer, BtoB and Internet Business
Car Dealer, BtoB and Internet Business Car Dealer Business ・A subsidiary that supervises the car dealer business was established, which enhanced the sales operations at each base. The enhancement of services, not only new car and used car sales, was promoted. BtoB Business ・Profit was improved due t
Slide 12: Retail Sales in Total AUTOBACS Group Stores
Retail Sales in Total AUTOBACS Group Stores Retail Sales Including FCs: 134.1 billion yen (+11.2% YoY) (Billion Yen) 160 120.5 134.1 140 Second hand goods & Fuel: 2.3BY (-10.6% YoY） 2.3 10.0 Statutory safety inspection: 10.0BY (+7.4% YoY) 120 2.6 14.9 Number of cars inspected： 322,000cars (+7.9% YoY
Slide 13: Sales Trend: Retail & Wholesale (Oct. 2018 – Sep. 2019)
Sales Trend: Retail & Wholesale (Oct. 2018 – Sep. 2019) 【YoY change for the last 12 months】 50% 46.9% Sales Wholesale 40% 41.7% 30% Increased wholesale 24.0% Strong sales of winter items due to advance 20% due to the cold wave delivery for GW products 11.0% 10.3% 9.5% 10% 9.0% 6.0% 4.7% 4.4% 11.1% 2
Slide 14: Total Number of Purchasing Customer and Average Purchasing Price Per Customer
Total Number of Purchasing Customer and Average Purchasing Price Per Customer 【YoY change for the last 12 months】 30.0% 27.7% Total Number of Purchasing Customer 25.0% Average Purchase Price Per Customer 20.0% 15.0% 10.6% 11.2% 10.0% 8.8% 7.1% 7.3% 4.8% 5.0% 4.0% 3.7% 4.1% 1.7% 0.5% -4.3% 0.0% 3.3%
Slide 15: Sales Variance by Merchandise (H1 FY2020)
Sales Variance by Merchandise (H1 FY2020) Sales* changes by merchandise category (Million Yen） (YoY change in amount; total store basis) 5,000 4,340 Summer tires: +2,610 MY Winter tires: +1,430 MY 4,000 3,667 Car Navitgation devices: -120 MY Dashcams: +3,050 MY 3,000 Electronic devices installation
Slide 16: Performance Results of Franchisees
Performance Results of Franchisees (Billion Yen) Ordinary Income of Franchise Companies (Preliminary) 80 60 40 32.70 20 0 1.80 -1.60 -20 Total of profit-making FCs -27.40 Total of profit-making subsidiaries -31.30 Total of loss-making FCs -40 Total of loss-making subsidiaries Combined ordinary incom
Slide 17: Performance by Overseas Subsidiaries
Performance by Overseas Subsidiaries (Million Yen） France Thailand Singapore China Malaysia Australia Number of 11 16 3 0 4 0 stores* Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Period FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 FY2019 Net sales 3,705 4,172 369 223 661 623 5
Slide 18: Shareholders Return
Shareholders Return Dividends per share Dividends and share buyback (Yen) (Billion Yen) Amount of share buyback 80 1st Half 2nd Half 12 Dividend paid 70 10 60 8 50 30 30 30 2.91 40 6 2.08 0.00 30 4 20 30 30 30 2 4.95 4.95 4.78 10 0 0 FY March 2018 FY March 2019 FY March 2020 FY March 2018 FY March 2
Slide 19: Assumptions for the business environment for the second half
Assumptions for the business environment for the second half Business environment [Positive Factors] - The increased interest of customers in dashcams continued. - The area applicable to the order to use tire chains was expanded. - Demand for smartphone-related items increased in line with the tight
Slide 20: Estimates of FY March 2020
Estimates of FY March 2020 The results for the first half exceeded the internal plan; however, we are maintaining the full-year earnings forecasts unchanged, considering the severe business environment in the second half. (Billion Yen) H1 H2 Full Year Results YoY Forecasts YoY Forecasts YoY Consolid
Slide 21: Initiatives under the Five-year Rolling Plan 2019
Initiatives under the Five-year Rolling Plan 2019 CEO, President Kiomi Kobayashi
Slide 22: Five-year Rolling Plan 2019
Five-year Rolling Plan 2019 ■Our mission We constantly create a new car lifestyle culture. - We will get closer to people's living, car and society, and offer more satisfying and value-added services to customers - ■What we aim to achieve in the Five-Year Rolling Plan We will establish and link the
Slide 23: Six Networks
Six Networks AUTOBACS Chain Next-generation Pit Service maintenance Online Overseas Multi-dealer Alliance 33
Slide 24: Six Networks
Six Networks Network is not a business itself but an infrastructure that connects customers to our brand ✔ AUTOBACS chain network ✔ Pit service network to provide best service ✔ Maintenance network to adapt to next- generation technology AUTOBACS Chain ✔ Multi-dealer network Next- generation Pit Ser
Slide 25: AUTOBACS chain network
AUTOBACS chain network ✓ Build a foundation of Online network Examples... AUTOBACS Customer base of 7 million active members and its Chain purchasing data, customer's car information, T-card transaction data and car parts identification data, etc ✓ Targeting partners : Online AUTOBACS group stores,
Slide 26: Pit service network to provide the best Service
Pit service network to provide the best Service ✓ Increase the connection point of customers that purchase items or receive services at other channels ✓ Increase the access to new customer data base ✓ Targeting partners : Pit Service electrical installers, automobile repair and maintenance shops, au
Slide 27: Maintenance network to adapt to next-generation technology
Maintenance network to adapt to next-generation technology ✓ Enhance collaboration with partners that deal with next-generation technologies, regardless of their name or size Next- ✓ Handle information of maintenance that generation requires next-generation technologies, maintenance facilities, main
Slide 28: Multi-dealer network
Multi-dealer network ✓ Handling information of next-generation vehicles through the car dealership business and make the best use of it with other networks Online ✓ Targeting partners : Domestic and overseas car dealers, used car dealers, car rental and car leasing companies, etc. Multi-dealer 25
Slide 29: Overseas Alliance network
Overseas Alliance network ✓ Incorporate technological innovations and business models from alliance companies ✓ Contribute to the development of a domestic value chain by start trading with foreign suppliers and wholesalers Online ✓ Targeting partners : Car sharing companies, startup companies relat
Slide 30: Online network to enhance relationships with customers
Online network to enhance relationships with customers ✓ Integrate all the data, technologies, skills, etc. of each network, and build a database that visualizes "people's lives" Domestic AUTOBACS 国内オートバックス事業 Business Overseas Business 海外事業 海外事業 Online Car Dealer Business ディーラー事業 ディーラー事業 BtoB busine
Slide 31: AUTOBACS SEVEN Vision 2050 Create Future Together
AUTOBACS SEVEN VISON 2050 Create Future Together Professional and Friendly 28
Slide 32: Appendix
Appendix
Slide 33: Non-Consolidated and Domestic Store Subsidiaries
Non-Consolidated and Domestic Store Subsidiaries (H1 FY2020) (Million Yen) Non-consolidated Domestic Store Subsidiaries Results YoY Results YoY Net Sales 79,545 +9,049 27,983 +3,638 Gross 16,789 ＋2,027 12,241 +1,832 margin(%) (21.1%) (+0.2pt) (43.7%) (+0.9pt) SG&A 14,046 +830 11,013 +769 Operating I
Slide 34: Store Openings and Closings (Plan)
Store Openings and Closings (Plan) Domestic stores Fiscal year ending March 31, 2020 No. of No. of H1 (results) No. of H2 (Plan) stores as of stores as of stores as of March 31, March 31, New S/B・R/L Close Sep. 30, New S/B・R/L Close 2020 2019 2019 (Plan) AUTOBACS 493 +2/-2 -2 491 +3 -2 492 Super AUT
Slide 35: Automobile purchase and sales business
Automobile purchase and sales business BtoB Sales Retail Details No. of cars sold Details No. of cars sold To AUTOBACS 1,590 Used cars 4,121 SEVEN Sales to AA via 2,533 New cars 2,369 AUTOBACS SEVEN Direct sales 5,762 from stores BtoB total 9,884 Retail total 6,490 Total 16,374 cars YoY +13.2% ※Incl
Slide 36: Balance Sheets / Assets
Balance Sheets / Assets Total Assets Total Assets 181.3 185.0 Billion Yen Billion Yen 25.7 Major items changed 30.6 Cash and deposit Notes and accounts 28.3 25.1 receivable Domestic AUTOBACS Business :+1.5BY 19.6 Inventory 21.6 Others :+0.7BY Other accounts 22.6 receivable 25.1 Other 9.7 current ass
Slide 37: Balance Sheets / Liabilities and Net assets
Balance Sheets / Liabilities and Net assets Liabilities and Liabilities and net assets net assets 181.3 185.0 Billion Yen Billion Yen Notes and accounts payable Short-term loans 21.2 payable 21.4 Major items changed 2.4 Accounts payable - 1.1 13.5 other 15.4 Other current 8.1 1.3 7.1 liabilities 1.9
Slide 38: CAPEX and Depreciation
CAPEX and Depreciation CAPEX Depreciation (Billion Yen) (Billion Yen) 7 6 6.12 5.89 6 5.4 5 4.57 4.20 4.84 4.16 4.03 5 4.61 4 3.84 3.73 4 3.58 3 3 2 2 2.21 1 （H1） 1 1.43 （H1） 0 0 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 （E） （E） 34
Slide 39: Cash Flow
Cash Flow Consolidated Cash Flow (Million Yen) (First Half FY2020) 4,000 1,810 2,000 Cash balance: 0 25.6Billion Yen(Sep.30, 2019) -1,172 37.3 Billion Yen (Sep.30, 2018) -2,000 -4,000 -6,000 -5,504 Operating CF Investment CF Financial CF Breakdown of investment items (including items other than CAPE
Slide 40: Domestic Store Subsidiaries: Management Restructuring
Domestic Store Subsidiaries: Management Restructuring Conversion of franchisees into a subsidiary ・Acquisition of Shares of franchise company, running 7 stores in Gifu, Nagano and Aichi Prefecture.（March 1, 2019） ・ Planned acquisition of Shares in franchise company, running 8 stores in Kumamoto pref
Slide 41: "Safety and Security" merchandise
“Safety and Security” merchandise Goods for security and safety are currently attracting attention from customers, because of multiple reports in the media of accidents due to mistakenly pressing down the accelerator instead of the brake. Pedal WatcherⅡ Price：40,000 yen (electric wiring for each car
Slide 42: JACK & MARIE Fifth store
Domestic AUTOBACS Business: JACK & MARIE Fifth store ■ Promotion of opening of stores Fifth store: JACK & MARIE Grandberry Park (open on November 13, 2019) Location: Machida-shi, Tokyo (inside Grandberry Park) 38
Slide 43: Conversion of a statutory safety inspection provider to a subsidiary
Conversion of a statutory safety inspection provider to a subsidiary To develop a new network, of maintenance business a statutory safety inspection provider has been converted into a subsidiary in June 2019. Company name : Seiwa Automobile Sales Co., Ltd. Location：Rittou-shi, Shiga Prefecture Busin
Slide 44: Making a wholesale business company a subsidiary
Making a wholesale business company a subsidiary Company name：HSC Planning ,Ltd Location ： Onojo-shi, Fukuoka Prefecture Business description：Planning, development and import wholesale business of wheels Capital： 10 Million Yen Stock acquisition date： July 31, 2019 40
Slide 45: Forward-Looking Statements
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 may differ materially from forecasts due to suc
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