Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — FY2010 Earnings Presentation
27 slides from Autobacs Seven's earnings presentation, May 14, 2010
Slide 1: Results for FY March 2010 and Forecasts for FY March 2011
Translation Results for FY March 2010 and Forecasts for FY March 2011 May 14, 2010 Yasuhiro Tsunemori Vice Chief Executive Officer
Slide 2: Contents
CONTENTS I. CONSOLIDATED FINANCIAL RESULTS FOR FY March 2010 How did the Company improve its profit? • Through the implementation of the mid-term business plan initiatives, sharp sales growth of ETC devices, and the effect of winter weather conditions • Through the wholesale sales catch up with the
Slide 3: Consolidated Financial Results for FY March 2010
Ⅰ CONSOLIDATED FINANCIAL RESULTS FOR FY March 2010 2
Slide 4: Financial Results
FINANCIAL RESULTS (billion yen) FY March 2010 results FY March 2009 results Forecast Actual result YoY change (amount) Change from the (Nov.6, 09) (% of Net Sales) (% of Net Sales) YoY change (%) original forecast (amount) Net Sales 231.3 232.9 ▲26.2 + 1.6 259.1 ▲ 10.1% Gross 74.0 73.9 ▲7.1 + 0.0 81
Slide 5: Financial Results: Summary
FINANCIAL RESULTS: SUMMARY REVENUE DECLINE BUT EARNINGS IMPROVEMENT Achieved the initial target for Earnings according to the implementation of the mid-term business plan initiatives and the sharp sales growth of ETC devices 1. Business environment Positive: Strong sales of ETC devices and long di
Slide 6: Major Drivers of Variance
MAJOR DRIVERS OF VARIANCE (billion yen) FY March 2010 FY Mar 2009 Results results (% of Sales) YoY Major drivers of variance (% of Sales) Net Sales 232.9 ▲10.1% ↓Non-consolidated sales: ▲8.0（see next slide) 259.1 ↑Domestic store subsidiaries:＋2.8 ↓Overseas subsidiaries(withdrawals): ▲18.5 Gross Marg
Slide 7: Improvement in Operating Income
IMPROVEMENT IN OPERATING INCOME Factors of Improvements in the Consolidated Operating Income (billion yen) 12 Reduction of SG&A expenses at non- Gross profit decline consolidated 10 due to weak sales basis 1.4 at non-consolidated basis (except ETC) 8 Operating profit 2.3 improvement at 2.5 ▲2.1 dome
Slide 8: Performance of Subsidiaries
PERFORMANCE OF SUBSIDIARIES (billion yen) FY March 2010 FY Mar 09 Forecast Change from results Results YoY (11/6/2009) original estimates Domestic retail sales Net Sales including FCs 292.6 296.2 Net Sales 189.9 190.9 96.0% 100.5% 199.0 Non-consolidated Ordinary Income 10.4 10.5 118.3% 101.3% 8.9 Do
Slide 9: Performance Breakdown
PERFORMANCE BREAKDOWN Non-consolidated (billion Yen) ▲6.50 ↑Car electronics devices Net Sales Wholesale (▲3.5%) ↓Tires & wheels, motorsports goods, motorcycle goods, used cars 190.9 （▲8.06） ▲1.50 ↓Tires & wheels, car electronics devices, motorcycle related goods, Retail (▲12.9%) used cars Gross ▲0.2
Slide 10: Subsidiaries Restructured
SUBSIDIARIES RESTRUCTURED Restructuring Initiatives executed by the end of March 2010 Subsidiaries • Merger of AUTOBACS Insurance Service Co., Ltd. and Alfi Ltd. for supporting • Merger of AUTOBACS Management Service Ltd. and A.B. Consulting Co., functions Ltd. • Dissolution and liquidation of Car L
Slide 11: Performance Results of Franchisees
PERFORMANCE RESULTS OF FRANCHISEES Ordinary Income of Franchise Companies (billion yen) 8 Total of profit-making FCs Total of loss-making FCs 6 Ordinary income(Gross) 5.8 4 4.1 2.9 2.5 2.1 2 0.5 0 -2 FY Mar 2005 FY Mar 2006 FY Mar 2007 FY Mar 2008 FY Mar 2009 FY Mar 2010 Notes) Three listed companie
Slide 12: Store Sales and Wholesale Results
STORE SALES AND WHOLESALE RESULTS The unordinary trend of retail sales growth overwhelming the wholesale sales growth is settling down Store sales and Wholesale results 15% Wholesale weaker than retail sales trend returned to normal 10% 3.7% 6.1% 2.8% 4.9% 5% 5.0% 3.7% 3.6% 2.5% 3.2% 1.2% 2.2% 0.7%
Slide 13: Geographical Segments (Overseas)
GEOGRAPHICAL SEGMENTS (Overseas) FRANCE CHINA SINGAPORE THAILAND Number of Stores (at Mar 31, 2010) 11 6 2 3 Comparable store sales ▲5.3% ▲18.0% +7.9% ▲4.2% (yoy change rate) Net Sales 654 44 94 53 (million yen) Operating Expenses 384 28 30 13 (million yen) Operating Income ▲64 ▲14 +8 +1 (million ye
Slide 14: Balance Sheet / Assets
BALANCE SHEET / Assets TOTAL ASSETS 224.1billion yen 210.6billion yen Cash and deposits Major items changed 39.1 Trade notes and account 43.8 receivables 23.6 Lease investment 16.2 assets 23.2 Merchandise: ▲4.4billion yen 13.8 Marketable 14.5 securities Land： ▲1.2billion yen 21.2 Inventories 13.9 So
Slide 15: Balance Sheet / Liabilities & Net Assets
BALANCE SHEET / Liabilities & Net Assets TOTAL LIABILITIES AND NET ASSETS 224.1billion Yen 210.6billion Yen Major items changed Accounts payable ST borrowings: +1.5billion yen ST borrowings 16.4 and 3.3 corporate bond 15.8 Provision for business 25.0 Other ST liabilities 4.9 restructuring: ▲3.5billi
Slide 16: Retail Sales Including Franchisees
RETAIL SALES INCLUDING FRANCHISEES* RETAIL SALES INCLUDING FCs: 292.5 billion yen (down by 1.2% YoY) （billion yen） 350 Statutory safety inspection sales:13.4billion yen 296.2 292.5 (+10.5% YoY) 300 12.2 13.4 Number of cars inspected： 446,000cars (+15.3% YoY) 16.5 12.7 Number of fully certified & des
Slide 17: Retail Sales Trend
RETAIL SALES TREND SALES AND CUSTOMER COUNT (YOY change) （％） 15.0 Strong sales of ETC devices and Abundant snowfall esp. in long distance driving goods the Japan Sea Region 10.0 5.4 5.4 5.5 4.2 5.0 3.0 5.3 5.1 2.5 1.8 2.4 1.2 3.8 2.9 2.8 3.8 1.9 1.6 0.0 1.2 0.3 -2.5 -5.0 -6.4 -7.5 -10.0 -11.2 Reacti
Slide 18: Sales by Merchandise Category
SALES BY MERCHANDISE CATEGORY SALES TREND* (YOY change, total store basis) (Million yen) Summer tires: +210MY 2,500 ETC devices: +1,870MY Snow tires: ▲790MY Navigation systems ：+ 640MY Motor Sports Goods +1.1% in quantity Car audios: ▲1,230MY Motorcycle Goods ▲1.2% in revenue 1,500 1,330 1,230 Unit-
Slide 19: Store Openings and Closings
STORE OPENINGS AND CLOSINGS Domestic stores No. of FY March 2010 No. of stores at stores at Store Type March 31, 1st-half (result) 2nd-half (plan) March 31, 2009 New S/B・R/L Close New S/B・R/L Close 2010 AUTOBACS 397 ＋2 ＋1/▲1 ＋3/▲3 ▲4 395 Super AUTOBACS 77 ▲1 ＋1 77 AUTO HELLOES 8 8 AUTOBACS Hashiriya
Slide 20: Financial Forecasts for FY March 2011
Ⅱ FINANCIAL FORECASTS FOR FY March 2011 19
Slide 21: Financial Forecasts (FY March 2011)
FINANCIAL FORECASTS (FY March 2011) (Billion yen) FY March 2010 FY March 2011 (Forecasts) Results 1st-half 2nd-half Full Year YoY (% of sales) (% of sales) (% of sales) (% of sales) (%) Net Sales 232.9 111.0 114.9 225.9 ▲3.0% Gross Profit 73.9 36.3 37.7 74.0 31.8% 32.7% 32.8% 32.8% +0.0% SG&A 63.8 3
Slide 22: Financial Forecasts: Major Points
FINANCIAL FORECASTS: MAJOR POINTS REVENUE DECLINE BUT EARNINGS GROWTH Achieve earnings growth in the challenging business conditions 1. By boosting sales of maintenance goods (esp. Tires) and services, offsetting the revenue decline in ETC devices. 2. By improving gross margin and continuing cost co
Slide 23: Changing Factors of Operating Income
CHANGING FACTORS OF OPERATING INCOME Changing Factors of Consolidated Operating Income 12.0 Decline due to weak Recovery of the one sales in merchandises time restructuring cost except ETC devices of subsidiaries 0.4 10.0 0.3 0.4 Increase due to 2.0 2.0 reduced SG&A costs 8.0 Decline due to Increase
Slide 24: Forecasts at Parent & Subsidiary Level
FORECASTS AT PARENT & SUBSIDIARY LEVEL (billion yen) FY March 2011 （Forecasts） FY March 2010 Results 1st-half 2nd-half Full Year YoY Non- Net Sales 190.93 90.90 94.80 185.70 ▲5.23 consolidated Ordinary Income 10.53 4.70 5.90 10.60 +0.06 Domestic store Net Sales 79.06 39.00 41.00 80.00 +0.93 subsidia
Slide 25: FY Mar 2011 Store Openings and Closings
FY Mar 2011 STORE OPENINGS AND CLOSINGS Domestic stores No. of FY March 2011 (Forecasts) No. of Store Type stores at 1st-half 2nd-half stores at Mar 31, Mar 31, 2010 New S/B・R/L Close New S/B・R/L Close 2011 AUTOBACS 395 ＋4 ＋4/▲4 ＋2 ＋2/▲2 ▲2 399 Super AUTOBACS 77 ▲1 76 AUTO HELLOES 8 ▲2 ▲1 5 AUTOBACS
Slide 26: Dividend Plan
DIVIDEND PLAN RESULTS AND PLAN OF DIVIDEND （ yen per share ） 4% 300% 140 130 125 260.6% 250% 120 3% 100 100 3.0% 3.0% 2.3% 200% 100 2.4% 80 2% 150% 58 1.4% 60 76.4% 75.2% 100% 1% 40 50% 20 24.3% 0% 0% 0 ※ DOE（consolidated） Payout ratio（consolidated） * Excluding the effect of the share buy back in FY
Slide 27: 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