Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — FY2020 Earnings Presentation
53 slides from Autobacs Seven's earnings presentation, May 22, 2020
Slide 1: FY March 2020 Analyst Meeting
FY March 2020 Analyst Meeting AUTOBACS SEVEN CO., LTD. May 22, 2020
Slide 2: Table of Contents
Table of Contents Consolidated Results of FY March 2020・・・・・・・・P２～P16 ・Overview ・Domestic AUTOBACS Business ・Overseas Business ・Car Dealership, BtoB and Internet Business Forecasts for FY March 2021・・・・・・・・P17～P22 Implementation of Key Measures in the Domestic AUTOBACS Business and Operation Includi
Slide 3: Consolidated Results of FY March 2020 and Forecasts for FY March 2021
Consolidated Results of FY March 2020 and Forecasts for FY March 2021
Slide 4: Consolidated Results of FY March 2020
Consolidated Results of FY March 2020
Slide 5: Consolidated P/L (FY March 2020)
Consolidated P/L (FY March 2020) Increases in net sales and operating income: Despite increases in net sales and operating income, net income decreased due to an extraordinary loss. In the Domestic AUTOBACS Business, while sales of tires declined YoY due to a record-warm winter, dashcams continued t
Slide 6: Major Index of FY March 2020
Major Index of FY March 2020 Consolidated Sales YoY +3.5% Total AUTOBACS stores retail sales YoY -0.2% Whole sales of non-consolidated company YoY -1.1% Gross Profit FY 2020 FY 2019 32.0% ← 31.6% Operating Income FY 2020 FY 2019 7.58 Billion Yen ← 7.47 Billion Yen FY 2020 FY 2019 Net income 3.76 Bil
Slide 7: Sales and profits of Reporting Segments
Sales and profits of Reporting Segments (Million Yen) Sales※1 (Million Yen) Operating Income 200,000 179,060 20,000 179,377 180,000 14,869 160,000 15,000 13,572 140,000 FY March 10,000 120,000 2019 100,000 5,000 360 428 FY March 80,000 410 54 2020 60,000 38,482 0 30,028 -1,076 40,000 -783 11,756 2,1
Slide 8: Segment Information
Segment Information （Million Yen） FY March 2020 FY March 2019 YoY Summary result result Sales 179,377 179,060 +0.2% SG&A expenses increased due Gross profit 56,420 55,433 +1.8% to the conversion of FC stores Domestic into subsidiaries. In addition, AUTOBACS expenses related to sales Business SG&A 42
Slide 9: Operating Income YoY Ups & Downs by Reporting Segments
Operating Income YoY Ups ＆ Downs by Reporting Segments （Million yen） ＋ FY March 2020 FY March 2019 ＋ 7
Slide 10: Review for FY March 2020
Review for FY March 2020 ⚫ Sales of tires remained strong in the first half, reflecting a rush demand caused by the consumption tax hike and the announcement of a price increase in October. However, sales fell below the year- ago level in the second half due to the reactionary decline and a record-w
Slide 11: Retail Sales in Total AUTOBACS Group Stores
Retail Sales in Total AUTOBACS Group Stores Retail sales including FCs*: 266.8 billion Yen (-0.2% YoY) (Billion Yen) 267.2 266.8 300 5.2 4.7 Second hand goods & Fuel: 4.7BY (-9.6% YoY） 250 19.6 19.7 27.6 Statutory safety inspection: 19.7BY (+0.4% YoY) 27.7 Number of cars inspected： 634,000cars (-2.2
Slide 12: Review of Business Environment
FY March 2020 Review of Business Environment 【Same store basis (YoY)】 Sales: -0.2%, Number of purchasing customers: -1.9% Same store sales and number of purchasing customers at domestic AUTOBACS-chain stores including FCs (YoY) 50% Sales 41.4% Number of purchasing customers 40% 30% 20% 10.7% 10% 5.1
Slide 13: Total Number of Purchasing Customers and Average Purchasing Price Per Customer
Total Number of Purchasing Customers and Average Purchasing Price Per Customer 【YoY change for the last 12 months】 FY March 2020 30.0% 27.7% Total Number of 25.0% Purchasing Customers 20.0% Average Purchase Price Per Customer 15.0% 11.2% 10.6% 10.0% 7.3% 7.1% 4.1% 5.0% 3.7% 3.1% 0.5% 3.3% 0.1% 0.0%
Slide 14: Sales Ups & Downs by Merchandise
Sales Ups & Downs by Merchandise (FY March 2020) Retail sales ups and downs by merchandise category (Million Yen） (FY March 2020, YoY change in amount, total store basis) 3,000 2,566 Dashcams: +3,390 MY 2,500 Pedal Watcher: +480 MY Car Navigation devices: -1,490 MY Tire Chains: -1,740 MY 2,000 Elect
Slide 15: Profit Improvement of Store Subsidiaries
Profit Improvement of Store Subsidiaries (Million Yen) Operating income of store subsidiaries 2,000 1,475 1,633 1,610 1,000 270 0 -1,000 -974 -2,000 FY March 2016 FY March 2017 FY March 2018 FY March 2019 FY March 2020 45.0% Improved index of store subsidiary 42.8% 43.2% 42.7% 39.9% 40.0% 39.8% 39.7
Slide 16: Change in the profit of Overseas Business
Change in the profit of Overseas Business (Billion) (Million) Sales Operating loss Major factors for shrinkage 15 of operating loss: strengthened wholesale Retail businesses -360 -400 Wholesale Operating loss 10 -537 -783 5 -800 FY March 2018 FY March 2019 FY March 2020 The operating loss shrank thr
Slide 17: Performance by Overseas Subsidiaries
Performance by Overseas Subsidiaries Performance of Consolidated Subsidiaries (Million Yen) Total overseas France Thailand Singapore China Malaysia Australia subsidiaries Number of stores* 11 17 2 0 5 0 ー FY FY FY FY FY FY FY FY FY FY FY FY FY FY Period March March March March March March March Marc
Slide 18: Change in the profit of Car Dealership, BtoB and Internet Business
Change in the profit of Car Dealership, BtoB and Internet Business Major factors for improvements (Billion) in operating income (Million) Sales BtoB subsidiaries: Improvement Operating Sales in efficiency Income Car Dealership: Improvement in profitability 40 54 0 Operating Income -842 20 -1,000 -10
Slide 19: Forecasts for FY March 2021
Forecasts for FY March 2021
Slide 20: Expectations for the Business Environment (FY March 2021)
Expectations for the Business Environment (FY March 2021) Business Environment [Positive Factors] ・Increase in demand in reaction to hesitation toward purchasing winter goods in the previous year due to a warm winter. ・Increase in demand for maintenance services due to the prolonged age of vehicles
Slide 21: Financial Forecasts (FY March 2021)
Financial Forecasts (FY March 2021) (Billion Yen) FY March 2020 FY March 2021 (Forecast) Result 1st-half 2nd-half Full year YoY change (% to Net sales) (% to Net sales) (% to Net sales) (% to Net sales) (amount & rate) Net sales 221.4 102.6 121.2 223.0 +1.1% Gross profit 70.7 31.9 39.5 71.5 +1.1% 32
Slide 22: Forecasts of FY March 2021 (by Reporting segments)
Forecasts of FY March 2021 (by Reporting segments) (Million Yen) FY March 2020 (Forecasts) YoY change 1st-half 2nd-half Full Year (amount) Domestic Net sales 82,300 97,040 179,340 -0.0% AUTOBACS Operating Business income 4,440 9,850 14,290 +5.3% Net sales 5,030 6,160 11,190 -4.8% Overseas Business O
Slide 23: Capital Expenditures & Depreciation
Capital Expenditures & Depreciation Capital Expenditures Depreciation (Billion Yen) (Billion Yen) 7.0 7.0 5.89 6.0 6.0 4.84 5.0 4.61 5.0 4.41 4.40 4.16 4.03 4.0 3.84 3.72 3.58 4.0 3.42 3.30 3.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 FY FY FY FY FY FY FY FY FY FY FY FY March March March March March March March
Slide 24: Shareholders Return
Shareholders Return Dividends per share Dividends and share buyback (Yen) (Billion Yen) Amount of share buyback 80 1st Half 2nd Half 12 Dividends paid 70 10 60 8 50 30 30 30 2.91 2.08 40 6 30 4 20 30 30 30 2 4.95 4.82 4.82 10 0 0 FY March 2019 FY March 2020 FY March 2021 FY March 2019 FY March 2020
Slide 25: Implementation of Key Measures in the Domestic AUTOBACS Business and COVID-19 Measures
Implementation of Key Measures in the Domestic AUTOBACS Business and Operation Including Measures Against COVID-19 and Progress of the Five-Year Rolling Plan 2019
Slide 26: Implementation of Key Measures Including Measures Against COVID-19
Implementation of Key Measures in the Domestic AUTOBACS Business and Operation Including Measures Against COVID-19
Slide 27: Implementation of Key Measures in the Domestic AUTOBACS Business
Implementation of Key Measures in the Domestic AUTOBACS Business ✔ Tires Number of tires sold （FY March 2020） (YoY) Summer Tires 101.1％ Winter Tires 82.4％ total 95.0％ ✔ Statutory Safety Inspection & Maintenance Services （FY March 2020） (YoY) Number of units sold 97.8％ Retail Sales 100.4％ ✔ Store Ren
Slide 28: Stores Operation Including Measures Against COVID-19
Stores Operation Including Measures Against COVID-19 26
Slide 29: FC Support Measures for FY March 2021
FC Support Measures for FY March 2021 (Reduction or exemption of expenses, postponement of payments, and financing) Support measure 1: Reduction of advertising expenses payment by FC Reduction or exemption of expenses for certain items, with respect to half of the costs borne by franchisees for nati
Slide 30: Progress of the Five-Year Rolling Plan 2019
Progress of the Five-Year Rolling Plan 2019
Slide 31: 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 32: Initiatives for Five-Year Rolling Plan 2019
Initiatives for FY March 2020 Five-Year Rolling Plan 2019 Progress of the Five-Year Rolling Plan 2019 1. Initiatives for construction and coordination of the Six Networks 2. Maintenance of business infrastructure AUTOBACS Chain Next- generation Pit Service maintenance Online Overseas Multi- Alliance
Slide 33: Establishment of a new Online Network: Strategic alliance with Car Frontier
Initiatives for FY March 2020 Construction and Coordination of the Six Networks Establishment of a new Online Network ■Strategic alliance with Car Frontier Co., Ltd. an affiliated company of Mitsubishi Corporation（2020.５.１） We announced investment in BEAD Inc. The company operates TIREHOOD, an onlin
Slide 34: Online Network: Improvement of AUTOBACS app
Initiatives for FY March 2020 Construction and Coordination of the Six Networks Establishment of a new Online Network ■Improvement of AUTOBACS app We will enhance relationships with customers. ✓ Target release timing: Autumn 2020 ✓ We will establish an environment in which we get connected with cust
Slide 35: Online Network: Renewal of the Autobacs.com website
Initiatives for FY March 2020 Construction and Coordination of the Six Networks Establishment of a new Online Network ■Renewal of the Autobacs.com website ✓ The renewal will occur in 2020. ✓ We will boost competitiveness in the expanding e-commerce market and improve consumer convenience. The renewe
Slide 36: Establishment of AUTOBACS Chain Network: Wholesale network
Initiatives for FY March 2020 Construction and Coordination of the Six Networks Establishment of AUTOBACS Chain Network Changes in wholesale sales to non-group companies ■Establishment of a wholesale network FY ended March 2020 (YoY change) (Launched in FY ended March 2018) Number of client companie
Slide 37: Establishment of Next-Generation Maintenance Network
Initiatives for FY March 2020 Construction and Coordination of the Six Networks Establishment of Next-Generation Maintenance Network ■Acquisition of Takamori Jidousha Seibi Kogyo Co., Ltd. （2020.5.14） ■ Acquisition of Seiwa Automobile Sales Co., Ltd. （2019.6.3） ■Improvement of instruction system on
Slide 38: Establishment of Multi-Dealer Network
Initiatives for FY March 2020 Construction and Coordination of the Six Networks Establishment of Multi-Dealer Network ■Business expansion through the dealership of BMW and MINI. - Services are offered through seven urban facilities operated on a non-exclusive basis (Autoplatz K.K.) and five sub-urba
Slide 39: Establishment of Overseas Alliance Network
Initiatives for FY March 2020 Construction and Coordination of the Six Networks Establishment of Overseas Alliance Network ■Acquisition of SK AUTOMOBILE PTE.LTD. in Singapore（2019.11.13） - Bodywork/paint and maintenance businesses are operated in Singapore, where consistent demand for maintenance se
Slide 40: Development of Business Infrastructure
Initiatives for FY March 2020 - Development of Business Infrastructure 1) Human resources • Personnel system and career development program: Continued provision of training courses for selected personnel (training for young staff, prospective candidates for executives, female executives and group ma
Slide 41: AUTOBACS SEVEN VISION 2050
AUTOBACS SEVEN VISON 2050 Creating Our Future Together Professional & Friendly 39
Slide 42: APPENDIX
APPENDIX
Slide 43: Sales Trend: Retail & Wholesale
Sales Trend: Retail & Wholesale 【YoY change for the last 12 months】 50.0% 46.9% Increased in rush Sales Wholesale demand caused by tax hike and price 40.0% 41.7% rise of tires 30.0% 24.0% 20.0% Decreased due to low 11.0% 6.0% demand of winter goods 11.1% under the record warm 10.0% winter 4.4% -2.2%
Slide 44: Automobile purchase and sales business
Automobile purchase and sales business FY March 2020 BtoB sales Retail Details No. of cars No. of cars Details sold sold To AUTOBACS 3,061 Used cars 7,562 SEVEN Sales to AA via 5,059 AUTOBACS New cars 4,101 SEVEN Direct sales from 11,739 Retail total 11,663 stores BtoB total 19,859 *Include sales at
Slide 45: Results of Statutory Safety Inspection and Car Purchase & Sales Business
Results of Statutory Safety Inspection and Car Purchase & Sales Business Statutory safety inspection Car purchase and sales (total stores) (total stores) (Thousands cars) (Thousands cars) 40 700 646 648 35 650 633 634 635 31.5 31.1 29.8 29.6 30.0 30 600 550 25 500 20 450 15 400 10 350 5 300 0 FY Mar
Slide 46: Progress of New Store Openings (FY March 2020)
Progress of New Store Openings (FY March 2020) Location(Prefec Owner of Domestic Store name Opening date ture) store 1 AUTOBACS YOKAICHI Store ※ Shiga FC Jun. 14, 2019 2 AUTOBACS MATSUSAKA Store ※ Mie FC Jul. 11, 2019 3 AUTOBACS KATATA Store Shiga FC Oct. 11, 2019 4 AUTOBACS ICHIHARA Store Chiba FC
Slide 47: Store Openings and Closings (FY March 2020)
Store Openings and Closings (FY March 2020) FY March 2020 1st Half No. of 2nd Half No. of stores at No. of Domestic stores at Septemb stores at stores March 31, New S/B・R/L Close er 30, New S/B・R/L Close March 31, 2019 2019 2020 AUTOBACS 493 +2/-2 -2 491 +3 -4 490 Super AUTOBACS 74 74 74 AUTOBACS Se
Slide 48: Quarterly P/L (FY March 2020)
Quarterly P/L (FY March 2020) (Billion Yen) FY March 1st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2019 Net sales 50.5 60.5 65.6 44.7 221.4 YoY +3.0% +24.9% -4.0% -6.6% +3.5% Gross profit 16.2 19.2 20.6 14.5 70.7 （% of Sales） (32.1%) (31.9%) (31.5%) (32.4%) （32.0%) YoY +10.5% +19.7% -1.6% -7.7%
Slide 49: Non-Consolidated and Domestic Store Subsidiaries
Non-Consolidated and Domestic Store Subsidiaries (Million Yen) Non-consolidated Domestic Store Subsidiaries Results YoY Results YoY Net Sales 156,493 -128 56,200 +2,747 Gross 32,883 -257 24,260 +1,403 Profit(%) (21.0%) (-0.2pt) (43.2%) (+0.4pt) SG&A 27,967 +1,036 22,650 +1,427 Operating Income 4,915
Slide 50: Performance Results of Franchisees
Performance Results of Franchisees 国内オートバックス事業 Ordinary Income of Franchise （Billion Yen） Companies (Preliminary) 80 60 59.1 56.1 50.2 40 20 16.6 0 -3.0 -20 Total surplus FC companies Total surplus subsidiaries Total deficit FC companies Total deficit subsidiaries Total ordinary income -40 FY March
Slide 51: Balance Sheet: Assets
Balance Sheet: Assets Total Assets Total Assets 181.3 BY 172.7 BY (Billion Yen) 30.6 Cash and Major items changed deposits 28.2 Trade notes 25.1 and accounts receivable 21.9 Domestic AUTOBACS Merchandise Business :-2.4BY 19.6 20.7 Accounts Others :-7.2BY 22.6 receivable 18.9 Other 9.7 current assets
Slide 52: Balance Sheets: Liabilities and Equity
Balance Sheets: Liabilities and Equity Total Liabilities Total Liabilities & Equity & Equity 181.3 BY 172.7 BY (Billion Accounts payables Yen) 21.2 Short-term borrowings 12.4 2.4 Other short-term 1.8 13.5 liabilities 13.9 1.3 Long-tem 0.9 11.4 borrowings 15.7 Major items changed Other long-term liab
Slide 53: 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 forecasts made in accordance with information currently available. Actual results may differ materially from forecasts due to suc