Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — H1 FY March 2023 Earnings Presentation
47 slides from Autobacs Seven's earnings presentation, Nov 1, 2022
Slide 1: Results for the Six Months ended September 30, 2022
Results for the Six Months ended September 30, 2022 AUTOBACS SEVEN CO., LTD. November 1, 2022
Slide 2: Table of Contents
Table of Contents Results of the 1st Half of FY March 31, 2023 & Earnings Forecast for 2nd Half and Full Year １． Overview of Business Results P.３～ ２． Domestic AUTOBACS Business P.７～ ３． Overseas Business P.９～ ４． Car dealership, BtoB and P.11～ Online Alliance Business ５． Forecast for 2nd Half and Full
Slide 3: Results of the 1st Half of FY March 2023 and Forecast for 2nd Half and Full Year
Results of the 1st Half of FY March 31, 2023 and Forecast for 2nd Half and Full Year Earnings Director and Executive Officer, Finance & Accounting and IR & PR Tomoaki Ikeda 2
Slide 4: 1st Half of FY March 2023 Consolidated P/L
Overview of Business Results 1st Half of FY March 2023 Consolidated P/L Net sales and income increased, despite the impact of a reduction in new car production and a surge in the prices of crude oil and raw materials The Domestic AUTOBACS Business performed solidly by capturing demand for maintenanc
Slide 5: Highlights of Consolidated Financial Results for 1st Half FY March 2023
Overview of Business Results Highlights of Consolidated Financial Results for 1st Half FY March 2023 Domestic ✓ Business performance remained solid due to the capture of demand for maintenance parts for existing owned cars, which was generated due to a decline in new car production, although prices
Slide 6: 1st Half FY March 2023 Consolidated P/L Five Years Transition
Overview of Business Results 1st Half FY March 2023 Consolidated P/L Five Years Transition Sales and income continued to increase compared to normal years excluding any special factors. *Comparison with the 1st half of FY March 2019 and the 1st half of FY March 2022 （Billion Yen） Sales （Billion Yen）
Slide 7: Segment Information
Overview of Business Results Segment Information 1st Half ending 1st Half ended YoY Summary （Million Yen） March 31, 2023 March 31, 2022 Sales 82,183 79,071 +3.9% Demand for car electronics and car interior goods fell due to a decline in new car Domestic Gross profit 27,441 26,653 +3.0% production. A
Slide 8: Retail Sales in Total AUTOBACS Group Stores
Domestic AUTOBACS Business Retail Sales in Total AUTOBACS Group Stores RETAIL SALES INCLUDING FCs: 126.2 billion yen (+3.9% YoY) （Billion Yen） Result YoY 140 121.4 126.2 120 Automotive goods & services 95.5BY +1.1% 100 80 94.4 95.5 17.8BY +23.9% Used car purchase & sales 15,544 cars +8.2% 60 Number
Slide 9: Sales Variance by Merchandise
Domestic AUTOBACS Business Sales Variance by Merchandise Sales changes by merchandise category (YoY change in amount; total store basis) (Million Yen） 4,000 3,332 3,000 Motor Sports Goods 2,000 Car Leisure Items Car Repair Goods Car Electronics Maintenance 1,118 Accessories 1,000 471 Parts 287 176 1
Slide 10: Overseas Business Sales and Operating Income Changes
Overseas Business Overseas Business Sales and Operating Income Changes Sales increased and operating loss decreased due to the recovery of retail and the solid performance of wholesale, offsetting the impact of inflation and other factors. Main factor: Operating Income Sales (Million Yen) Gross prof
Slide 11: Performance by Overseas Subsidiaries
Overseas Business Performance by Overseas Subsidiaries （Million Yen） France Australia Singapore China Malaysia Number of stores 10 0 2 0 5 23/3 22/3 23/3 22/3 23/3 22/3 23/3 22/3 23/3 22/3 Period 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half Net sales 3,73
Slide 12: Car Dealer, BtoB and Online Alliance Business Sales and Operating Income Changes
Car Dealership, BtoB and Online Alliance Business Car Dealer, BtoB and Online Alliance Business Sales and Operating Income Changes Profitability was regained, because the two companies that became consolidated Group companies in 2021 remained strong. Main factors: Operating income exceeded the same
Slide 13: Car Dealer, BtoB and Online Alliance Business Overviews
Car Dealership, BtoB and Online Alliance Business Car Dealer, BtoB and Online Alliance Business Overviews Car Dealership Business ✓ Start operation of authorized Audi dealerships in April 2021. This enabled the Company to promote three brands BMW, MINI and Audi as a dealership business. ✓ Secured op
Slide 14: 2nd Half FY March 2023 Expectations for the Business Environment
Forecast for 2nd Half and Full Year 2nd Half FY March 2023 Expectations for the Business Environment Positive Factors ✓ It is expected that COVID-19 restrictions on economic activities will be eased gradually, causing people's movement and society to return to normal ✓ Growing demand for maintenance
Slide 15: 2nd Half and Full Year Earnings Forecast FY March 2023
Forecast for 2nd Half and Full Year 2nd Half and Full Year Earnings Forecast FY March 2023 No changes to the full-year forecasts in the initial plan Full year 1st Half 2nd Half （No changes from initial plan） Actual Forecast YoY YoY Forecast YoY （Billion Yen） results （Revised） Net sales 107.0 +3.4% 1
Slide 16: Earnings Forecast FY March 2023 Reporting Segments
Forecast for 2nd Half and Full Year 2nd Half and Full Year Earnings Forecast FY March 2023 Reporting Segments Full year 1st Half 2nd Half （No changes from initial plan） Actual Forecast YoY YoY Forecast YoY （Million Yen） results （Revised） Domestic Sales 82,183 +3.9% 92,096 -7.2% 174,280 -2.2% AUTOBAC
Slide 17: Earnings Forecast FY March 2023 Dividends and Share Buyback
Forecast for 2nd Half and Full Year 2nd Half and Full Year Earnings Forecast FY March 2023 Dividends and Share Buyback Dividends per Share Dividends and Share Buyback （Yen） （Billion Yen） 80 1st Half 10 Amount of Share Buyback 2nd Half Dividends Paid 8 60 6 3.0 30 30 30 40 4 20 4.79 4.73 4.67 30 30 3
Slide 18: Capital Expenditures & Depreciation
Forecast for 2nd Half and Full Year 2nd Half and Full Year Earnings Forecast FY March 2023 Capital Expenditures ＆ Depreciation Capital Expenditures Depreciation （Billion Yen） （Billion Yen） 7 7 6.30 6.10 6 6 5 4.61 5 4.41 3.99 4.03 4.16 4.20 4 3.72 3.85 3.58 4 3.42 3.23 3 3 2.14 2 2 1 1 0 0 2018/3 20
Slide 19: Results for 1st Half of FY March 2023
Results for 1st Half of FY March 2023 Representative Director and Chief Executive Officer Yugo Horii 18
Slide 20: Priority Initiatives
Priority Initiatives Priority Initiatives 1. Improve execution and increase speed 2. Strengthen initiatives for sustainable growth 3. Continue human resource development initiatives 19
Slide 21: Improve execution and increase speed: Strengthening investment income management
Priority Initiatives １．Improve execution and increase speed Optimizing management resources by reviewing and refining the business portfolio 【Strengthening investment income management】 ● Managing and visualizing the entire company using ROIC ● Enabling ROA by business to be reflected in the evaluat
Slide 22: Improve execution and increase speed: Business Portfolio Review
Priority Initiatives １．Improve execution and increase speed Optimizing management resources by reviewing and refining the business portfolio 【Business Portfolio Review】 Growth Potential Business C Business B Business D Business A Business domains to be refined Capital Efficiency 21
Slide 23: Strengthen initiatives for sustainable growth: EC and BOPIS
Priority Initiatives ２．Strengthen initiatives for sustainable growth Integrating online and physical stores: Evolution as a retail company Adapting to the integration of online and offline stores, which has been accelerating during the COVID-19 pandemic Example initiative: Saving time by using BOPIS
Slide 24: Vision: Achieving CDE with a digital ecosystem
Priority Initiatives ２．Strengthen initiatives for sustainable growth DX utilizing Unique Data: Evolution from a retail company Vision: Achieving “CDE” with a digital ecosystem Three strategies (1) New marketplace (channel shift) (2) New customer composition (personas) (3) Building new E2E infrastruc
Slide 25: Increase store profits by distribution cost efficiency
Priority Initiatives ２．Strengthen initiatives for sustainable growth Increase store profits by distribution cost efficiency ◼ Distribution cost efficiency 6,141 （Million Yen） 5,864 KPI： 9.2% Ratio of distribution cost to shipment 7.0% 5,062 8.4% 8.2% Stock Reduction Goals 20.0% FY 2019 FY 2020 FY 20
Slide 26: Continue human resource development initiatives
Priority Initiatives ３．Continue human resource development initiatives Continue human resource development initiatives ◼ Recruiting, developing, and retaining certified mechanics • Moving forward with the acquisition of new mechanic school graduates, qualified personnel and foreign human resources b
Slide 27: Medium-to Long-term Strategies
Medium-to Long- term Strategies Medium-to Long-term Strategies ◼ Officers' prioritization of measures to improve profitability from a company-wide perspective began ◼ Considerations for the formulation of a medium-term business plan begun by team members in their 40s or younger who are the next gene
Slide 28: Initiatives for ESG・SDGs
Initiatives for ESG・SDGs Initiatives for ESG・SDGs Materiality was identified through discussions at the Board of Directors Society we want to realize Our ideal company we want to be Safe, secure, and gentle society in which people, cars, and the Professional & Friendly environment exist in harmony S
Slide 29: Initiatives for ESG・SDGs: Non-financial targets and KPIs
Initiatives for ESG・SDGs Initiatives for ESG・SDGs Non-financial targets and KPIs to be addressed by the Company to achieve the four Materiality's Results of Goals for Non-financial targets Range KPI 2021 2030 Consolidated Selling products for preventing accidents 170,000/year 230,000/year Promoting
Slide 30: Our Goals through Five-year Rolling Plan
TOPICS Our Goals through Five-year Rolling Plan Actively promote collaboration across business boundaries to improve customer convenience 29
Slide 31: Five-year Rolling Plan: Efforts to create networks
TOPICS Five-year Rolling Plan: APPENDIX Efforts to create networks ■Operates Authorized Dealers of ■AUTO IN Shaken and Tire Center BMW, MINI, and Audi Next- Automotive Multi-Dealer Generation Service Pit related Network Maintenance Network Goods Sales Network Network - Commenced the operation of Aud
Slide 32: Five-year Rolling Plan: Local maintenance network
TOPICS Five-year Rolling Plan: APPENDIX ◼ Creating a local network for Efforts to create networks maintenance Next- Generation Service Pit Maintenance Network Network - Established a system to respond promptly to environmental changes surrounding the maintenance industry, thus establishing a system
Slide 33: Five-year Rolling Plan: ADAS Calibration Center
TOPICS Five-year Rolling Plan: APPENDIX Opened a new ADAS Calibration Center* Efforts to create networks Next- Service Pit *Recently launched cars come with many features supporting safe driving, such as Generation Network automatic braking. They therefore have cameras and sensors mounted on the Mai
Slide 34: Five-year Rolling Plan: Online network and ALC Cloud
TOPICS Five-year Rolling Plan: APPENDIX ■Launch of a cloud-based service Efforts to create networks detecting drunkenness and ■New function “Machijikan alcohol consumption for Yoyaku” (waiting time reservation) corporate use installed in AUTOBACS official app Online Network （October 2021） Automotive
Slide 35: Opening of A PIT AUTOBACS KYOTO SHIJO
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■Opening of A PIT AUTOBACS KYOTO SHIJO （September 2022） A single place where you can find a car lifestyle that suits you ～the opening of the first A PIT AUTOBACS store, a new store format, in West Japan～ Opening of the second A PIT
Slide 36: Opening of GORDON MILLER KURAMAE
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■Opening of the brand's first store GORDON MILLER KURAMAE （November 2021） - The garage lifestyle-focused brand GORDON MILLER has opened its first store - The store is the only one store that sells all GORDON MILLER items - The prod
Slide 37: Opened VRNVROOMN online mall
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■ Opened a lifestyle-oriented VRNVROOMN online mall （July 2022） - Opened a lifestyle-oriented online mall, mainly featuring the collection of AUTOBACS' original brands such as JACK&MARIE, GORDON MILLER and ARTA in July 2022 - Aim t
Slide 38: Logistics reform through AI-based DX
TOPICS Five-year Rolling Plan: APPENDIX Logistics Infrastructure Initiatives for the establishment of business foundations ◼ Logistics reform through an AI-based DX of logistics (January 2022) — Invested in GROUND, a provider of logistics solutions, and concluded a business alliance agreement — - Vi
Slide 39: Initiatives for business foundations: Health management and DX
TOPICS Five-year Rolling Plan: APPENDIX Initiatives for the establishment of ■Selected under the 2022 Certified business foundations Health & Productivity Management Outstanding Organizations Recognition ■Recognized as a DX-certified operator Program (White 500) (March 2022) HR IT Information Infras
Slide 40: Response to Climate Change
TOPICS Response to Climate Change Positioning its response to climate change as an important management issue, the Company expressed its support for the TCFD recommendations in June 2022 The TCFD Disclosure Team responsible for analyzing scenarios has been established to engage in the task of identi
Slide 41: 1st Half of FY March 2023 Used Car Purchasing and Sales
Other Documents 1st Half of FY March 2023 Used Car Purchasing and Sales Total 15,544cars YoY +8.2％ BtoB Sales Retail Details No. of cars sold Details No. of cars sold Sales to 280 Used cars 3,252 Headquarters Sales to AA(Auto Auction) via 2,064 New cars 1,725 Headquarters Direct sales from 8,223 sto
Slide 42: Domestic Store Sales/Number of Purchasing Customers Changes
Other Documents Domestic Store Sales/Number of Purchasing Customers Changes [Same store basis (YoY)] Sales: 3.9%, Number of purchasing customers: -2.6% Same store sales and number of purchasing customers at domestic AUTOBACS-chain stores (YoY) Sales 10% 0% -10% 10% Number of Purchasing Customers 0%
Slide 43: Store Openings and Closings
Other Documents Store Openings and Closings FY March 2023 Domestic No. of stores at 1st Half (Result) No. of 2nd Half (Plan) No. of stores at stores March 31, stores at Sep 30, March 31, 2022 New S&B R/L Close New S&B R/L Close 2023 2022 AUTOBACS 494 +1 495 +2 +1/-1 497 Super AUTOBACS 74 74 +1/-1 74
Slide 44: Balance Sheet: Assets
Other Documents Balance Sheet: Assets 176.5BY 214.9BY 189.9BY 183.3BY 183.1BY （Billion Yen） Cash and 28.5 deposits 24.8 Notes and 29.1 22.5 24.0 37.3 accounts receivable - 25.8 22.9 trade 24.2 24.2 21.7 Merchandise 21.5 25.6 21.3 23.1 Accounts 32.0 receivable - 25.7 19.3 other 16.6 16.7 10.0 13.3 10
Slide 45: Balance Sheet: Liabilities and Equity
Other Documents Balance Sheet: Liabilities and Equity 176.5BY 214.9BY 189.9BY 183.3BY 183.1BY （Billion Yen） Notes and 34.3 accounts 6.5 17.7 payable - 15.3 14.6 15.8 1.7 0.9 trade 19.6 14.4 1.7 1.4 12.1 12.6 Short-term 10.8 15.2 12.8 12.6 11.8 borrowings 10.7 4.9 5.7 1.9 2.0 5.2 15.0 15.3 12.3 12.0
Slide 46: Cash Flows
Other Documents Cash Flows Consolidated Cash flows (1st Half) （Million Yen） 4,000 2,882 0 -2,691 -2,606 -4,000 Operating CF Investing CF Financing CF Details of major investments End of September 2022 - Investment to IT related Cash and cash equivalents: 22.5BY - Renovation of existing stores (End o
Slide 47: 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
Autobacs Seven — H1 FY March 2023 Earnings Presentation on 6ix