Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — H1 FY2013 Earnings Presentation
39 slides from Autobacs Seven's earnings presentation, Nov 1, 2012
Slide 1: Results for the Six Months Ended September 30, 2012
Translation ANALYST MEETING Results for the Six Months Ended September 30, 2012 November 1, 2012 Setsuo Wakuda Representative Director and CEO AUTOBACS SEVEN CO., LTD.
Slide 2: What We Want to Tell You Today
What We Want to Tell You Today 1. RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2012: Performance for the period under review was influenced significantly by the effects of a reactionary decline in demand in the aftermath of the earthquake and a drop in average sales price(ASP) of car navigation
Slide 3: 1. Results for the Six Months Ended September 30, 2012
1. RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2012: 2
Slide 4: Financial Results (Six Months Ended Sep 30, 2012)
Financial Results (Six Months Ended Sep 30, 2012) BOTH SALES AND PROFIT DECLINE: Both sales and profits fell short of the Company’s plan, primarily due to (i) a reactionary decline in demand for car navigation devices and digital terrestrial broadcasting tuners in the absence of a boost in demand fr
Slide 5: Sales Variance by Merchandise
Sales Variance by Merchandise 【Same store basis】 Sales: -4.7% YoY, Number of customers: +2.4% YoY （Million Yen） Retail sales ups and downs by merchandise category (for six months ended Sep. 30, 2012, YoY change in amount, total store basis) 4,000 Maintenance Parts Car Leisure Items Car Electronics 1
Slide 6: Changing Sales Volume between Passenger & Kei Cars
Changing Sales Volume between Passenger & Kei Cars Six months ended Six months ended September 30, 2010 September 30, 2012 Total Number of Sales: Total Number of Sales: 2,232,000 Cars 2,215,000 Cars KEI Cars KEI Cars 31.6% 35.3% Passenger Cars Passenger Cars 68.4% 64.7% Source from Japan Automobile
Slide 7: Car Navigation & Digital Terrestrial Broadcasting Tuner
Car Navigation & Digital Terrestrial Broadcasting Tuner Average Sales Price of Sales of Digital Terrestrial Car Navigation Devices Broadcasting Tuner 90 4000 (Thousand Yen) (Million Yen) 87 85 3000 3,280 80 80 75 2000 70 69 1000 670 65 510 60 0 Six months ended Six months ended Six months ended Six
Slide 8: Increase in Customer Visits & New Members
Increase in Customer Visits & New Members ＋ 8% YoY (Same Store basis ) +5.7% ＋ 6% +4.5% Number of customer visits ＋ 4% +3.1% +2.8% +2.2% +1.9% +2.1% +2.2% +2.1% ＋ 2% Number of membership customers +1.2% 0% Number of new membership customers -2% -1.4% -1.3% -2.1% Number of renewing customers(Engine-o
Slide 9: Sales Trend: Retail & Wholesale (Oct 2011 – Sep 2012)
Sales Trend: Retail & Wholesale (Oct 2011 – Sep 2012) （％） 【YoY change for the last 12 months】 25.0 Positive sales of winter items Reaction to LY’s Sales Wholesale 20.0 covers supply shortage of decline caused by the navigation earthquake Reaction to early delivery of 15.0 14.0 new tires and special
Slide 10: Domestic Retail Sales
Domestic Retail Sales Retail sales including FCs: 137.2 billion Yen (- 2.6% YoY) (Billion Yen) 150 140.7 137.2 1.8 1.8 Others（Fuel & Second-hand goods sales): 7.2 7.7 7.6 1.8 billion Yen (-2.2% YoY） 8.1 Safety inspection & maintenance services: 7.7 billion Yen (+7.3% YoY) 100 269 thousand cars (+8.0
Slide 11: Body Repair & Painting Services
Body Repair & Painting Services (Million Yen) 2,500 20.0% Sales Total store basis YoY 18.0% 2,098 16.9% 2,000 1,857 16.0% 1,659 14.0% 12.9% 1,500 11.9% 12.0% 10.0% 1,000 8.0% 6.0% 500 4.0% 2.0% 0 0.0% FY 2011(1st Half) FY 2012(1st Half) FY 2013(1st Half) Amounts are rounded to the nearest hundred mi
Slide 12: Analysis for Operating Income
Analysis for Operating Income Domestic Retail sales Total store basis: -2.6%／ same store basis: -4.7% Operating income (Billion yen) Amount Major drivers of variance (yoy) Non-consolidated 5.53 -0.96 BY • Net sales -4.92 (-5.2%) Gross Profit -0.76 (21.2% (last year 20.9%)) -Decline of gross profit o
Slide 13: Segment Information
Segment Information (Billion Yen) Six months Six months YoY Initial % to Plan ended ended Change Forecast September September 30, 30, 2012 2011 Net sales 90.08 95.00 -5.2% 97.7 -7.8% Non-consolidated Operating income 5.53 6.48 -14.8% 6.5 -15.0% Net sales 36.76 38.97 - 5.7% 39.7 - 7.4% Domestic store
Slide 14: Decrease in Consolidation Adjustments
Decrease in Consolidation Adjustments Consolidation Adjustments (Million Yen) Six months ended Six months ended September 30, 2012 September 30, 2011 Operating Income for segment total 4,539 6,719 Elimination of Intersegment transaction (218) (202) (Income of subsidiaries for supporting functions, e
Slide 15: Geographical Segments: Overseas
Geographical Segments: Overseas Results of overseas subsidiaries by country FRANCE CHINA SINGAPORE THAILAND Number of Stores at 11 3 3 4 September 30, 2012 Same store sales YoY change for the +0.6% -0.1% +9.3% -2.5% six months ended September 30, 2012 six months six months six months six months six
Slide 16: 2. Financial Forecast for the Latter Six Months of FY 2013
2. FINANCIAL FORECAST FOR THE LATTER SIX MONTHS OF FY 2013 (from October 1, 2012 to March 31, 2013): 15
Slide 17: Forecasts for FY 2013
Forecasts for FY 2013 (Billion Yen) 2nd Half (FY 2013) FY2013 ①Initial ②Revised YoY ①Initial ②Revised YoY ②－① ②－① Forecast forecast Change Forecast forecast Change Net sales 126.2 123.2 -3.0 +0.5% 242.5 234.0 -8.5 -1.4% Gross margin 41.1 40.1 -1.0 -0.1% 78.2 75.4 -2.8 -2.1% 32.6% 32.5% -0.1pt 32.2%
Slide 18: Factors to Affect the Latter Six Months Results
Factors to Affect the Latter Six Months Results Surrounding Environment： ・Severe for automotive goods and services due to the expected decrease in the number of new cars sold. ・ Increase in demand for snow tires for new cars ・ Average sales price of car navigation devices unlikely to recover Net Sal
Slide 19: Key Retail Measures: Car goods
Key Retail Measures: Car goods 1. Tires, oil and batteries － Enhance the selection of tires and wheels fitting for the cars sold in the first six month of the fiscal year under review － Enhance the selection of fuel efficient tires and low price range items － Enhance services, such as reservations b
Slide 20: Key Retail Measures: Safety inspection / Car sales
Key Retail Measures: Safety inspection / Car sales Safety Inspection / body repair and painting services 1. Promote service reservations to member customers 2. Continuous follow-up system for customers by statutory safety inspection contact center 3. Strengthen body repair and painting services － Im
Slide 21: 3. Measures and Progress of Autobacs 2010 Medium-Term Business Plan
3. MEASURES AND PROGRESS OF “AUTOBACS 2010 MEDIUM-TERM BUSINESS PLAN”: 20
Slide 22: Medium to Long Term Business Environment & Basic Strategy
Medium to Long Term Business Environment & Basic Strategy Surrounding Environment： ・Contraction of the car electronics market ・Prolonged cycles for the replacement of engine oil and batteries ・Improved awareness of drivers about the environment and energy saving ・Escalating competition in the indust
Slide 23: Progress of Medium-term Business Plan
Progress of Medium-term Business Plan Measures Progress of individual measure 1. Improving store profitability Considering introduction of the Group’s standardized store model, which has 1)Store reform been built through remodeling experiment Revised rebate agreements with major suppliers and adjust
Slide 24: Improvement of Store Profitability
Improvement of Store Profitability Performance after Store Reform Sales of Car goods (YoY rate) -5.0% Number of purchasing customers (YoY rate) +2.8% Number of items purchased from central shelves +9.0% Sales of Total maintenance corner +1.3% Store reform is producing results, but there are signific
Slide 25: To Improve the Earnings of Store Subsidiaries
To Improve the Earnings of Store Subsidiaries Present situation: Taking action to improve profits in the next fiscal year onward Strengthening the management systems of store subsidiaries Purpose: Enhance the management systems for optimal store allocation in given areas and future store openings In
Slide 26: Progress of New Store Openings
Progress of New Store Openings Store openings until October, 2012 and further new store openings publicly announced STORE NAME Formats Opening date 1 AUTOBACS Morioka-Nishi Bypass Store Standard Jul 5, 2012 2 AUTOBACS Suminoe Store Standard Jul 5, 2012 3 AUTOBACS Iwatsuki-Kakura Store Standard Jul 1
Slide 27: Overseas Business
Overseas Business China : A third directly managed store was opened in Shanghai. The first store in the city was closed. Experimentation at the two stores in Shanghai are continuing. ASEAN: Efforts to improve earnings at existing stores and ongoing study of future business are being made. Store open
Slide 28: Financial Strategies – Shareholder return policy
Financial Strategies – Shareholder return policy （Billion Yen） 14.0 9.85 9.85 10.22 11.83 12.0 10.0 8.0 6.20 7.20 5.46 Share 5.37 5.23 buyback 6.0 2.46 4.0 Dividend 2.0 3.75 4.48 4.62 4.76 4.63 0.0 FY March 2009 FY March 2010 FY March 2011 FY March 2012 FY March 2013 (Estimates) Dividend per share 1
Slide 29: What We Want to Tell You Today: Review
What We Want to Tell You Today: Review ・The current change in the business environment is in line with the Company’s expectations at the time of the drafting of the medium-term business plan. ・We will respond to changes by boosting market share through enhancements to individual stores to win the su
Slide 30: 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
Slide 31: Appendix
APPENDIX Jevvoa nan fag) AUTOBACS 30
Slide 32: Quarterly P/L (FY March 2013)
Quarterly P/L (FY March 2013) (Billion Yen) Q1 Q2 1st Half Result YoY Result YoY Result YoY Net sales 58.0 -2.2% 52.8 -4.8% 110.8 -3.4% Gross margin 17.7 -4.5% 17.6 -4.1% 35.3 -4.3% % of Sales 30.6% － 33.3% － 31.9% － SG&A 15.6 +1.8% 15.5 +0.6% 31.1 +1.2% Operating income 2.1 -34.7% 2.1 -28.4% 4.2 -3
Slide 33: Performance Breakdown
Performance Breakdown Parental company (Non-consolidated) -4.89BY ↑ Car interior items, motor sports goods Net Sale Whole Sale (-5.5%) ↓ Car electronics devices, used car, furniture and fixtures 90.1BY -0.06BY ↑ Car interior items, motor sports goods, fuel YoY: -4.92BY Retail (-1.4%) ↓ Car electroni
Slide 34: Balance Sheet: Assets
Balance Sheet: Assets (Billion Yen) Total Assets 217.9 BY 201.5 BY Major items changed Cash and deposits 51.0 Trade notes Cash and deposits：-8.0BY and account 42.9 receivables 26.8 Lease investment 28.4 13.4 assets Securities Marketable securities：-3.2BY 8.9 13.1 17.1 Inventories 5.8 17.6 Other curr
Slide 35: Balance Sheets: Liabilities & Equity
Balance Sheets: Liabilities & Equity (Billion Yen) Total Liabilities & Equity 217.9 BY 201.5 BY ST borrowings: Major -1.0 BY items changed Accounts payable 24.3 5.2 ST borrowings and 24.4 corporate bond 26.1 3.8 Other ST liabilities Other ST 18.2 5.3 liabilities 10.8 Bonds and 6.0 - accounts payable
Slide 36: Store Openings & Closings
Store Openings & Closings Domestic Store Fiscal year ending March 31, 2013 From Apr 1, 2012 From Oct 1, 2012 As of As of to Sep 30, 2012 (Result) to Mar 31, 2013 (Forecast) March 31, Sep 30, As of March 2012 New S/B R/L Close 2012 New S/B R/L Close 31, 2013 AUTOBACS 430 +11 +1/-1 -1 440 +19 +4/-3 46
Slide 37: Capital Expenditures & Depreciation
Capital Expenditures & Depreciation Capital Expenditures Depreciation (Billion Yen) (Billion Yen) 12.0 8.0 Full year estimate 7.00 9.75 7.0 10.0 Full year 6.00 estimate 6.0 7.69 8.0 4.90 5.0 4.50 4.80 6.69 4.60 6.0 4.0 4.87 3.0 4.0 3.06 3.19 2.0 2.0 1.0 0.0 0.0 March March March March March March Ma
Slide 38: Performance Results of Franchisees
Performance Results of Franchisees Ordinary Income of Franchise Companies (Million Yen) 4,000 2,000 1,776 1,889 1,422 0 (937) -2,000 (1,823) Total of profit-making FCs Total of loss-making FCs Ordinary income(Gross) -4,000 6 months 6 months 6 months 6 months 6 months ended Sep 30, ended Sep 30, ende
Slide 39: 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