Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — H1 FY March 2024 Earnings Presentation
45 slides from Autobacs Seven's earnings presentation, Nov 1, 2023
Slide 1: Results for the Six Months ended September 30, 2023
Results for the Six Months ended September 30, 2023 AUTOBACS SEVEN CO., LTD. November 1, 2023
Slide 2: Results of the 1st Half of FY March 2024 and Financial Forecast
Results of the 1st Half of FY March 2024 and Financial Forecast for 2nd Half and Full Year １．Overview of Business Results P. 3 ２．Domestic AUTOBACS Business P. 6 ３．Overseas Business P. 8 ４．Car Dealership, BtoB and Online Alliance Business P. 10 5．Initiatives to Achieve Management Emphasizing Capital
Slide 3: Results of the 1st Half of FY March 2024 and Financial Forecast
Results of the 1st Half of FY March 2024 and Financial Forecast for 2nd Half and Full Year General Manager Corporate Management Noritaka Hiraga
Slide 4: 1st Half of FY March 2024 Consolidated P/L
1st Half of FY March 2024 Consolidated P/L Net sales and gross profit increased because of strengthened sales promotions Business Results Overview of against the backdrop of demand for maintenance of existing owned cars. Both net sales and income increased, reflecting the transfer of the shares of t
Slide 5: Highlights of Financial Results for 1st Half FY March 2024
Highlights of Financial Results for 1st Half FY March 2024 Business Results Overview of Domestic ✓ Oil and batteries performed well due to maintenance demand for existing cars. Sales from services associated with these products also remained strong. ✓ Tire sales saw a decline from a year ago, which
Slide 6: Segment Information
Segment Information 1st Half ending 1st Half ended YoY Summary Business Results （Million Yen） March 31, 2024 March 31, 2023(*１) Overview of Sales 81,541 78,141 +4.4% Despite a price raise for tires in May, the company strengthened its product lineup and Domestic Gross profit 27,437 26,664 +2.9% sale
Slide 7: Retail Sales in Total AUTOBACS Group Stores
Retail Sales in Total AUTOBACS Group Stores Retail Sales in Total AUTOBACS Group Stores 129.9 billion yen YoY +2.9％ Result YoY Domestic AUTOBACS （Billion Yen） 140 126.2 129.9 Business Automotive 120 96.5BY +1.0% goods & services 100 95.5 96.5 Used car 19.6BY +10.1% 80 purchasing & sales 18,356 cars
Slide 8: Sales Variance by Merchandise
Sales Variance by Merchandise (YoY change in amount; total store basis) （Million Yen） 1,000 Domestic AUTOBACS 825 800 Navigation devices：-0.8BY Business Dashboard cameras：-4.1BY 600 399 Car Electronics 400 Maintenance Motor Sports 296 208 200 171 Wheels Goods Parts Tires 5 4 0 Oil Batteries Accessor
Slide 9: Overseas Business Sales and Operating Income Changes
Overseas Business Sales and Operating Income Changes Net sales and income increased despite the impact of the Ukraine situation and global inflation Main factors: Overseas Business Operating Income Sales increased due to stepped up Sales (Million Yen) (Million Yen) sales and marketing to existing 8,
Slide 10: Performance by Overseas Subsidiaries
Performance by Overseas Subsidiaries （Million Yen） France Australia Singapore China Malaysia Number of 10 0 2 0 5 stores Overseas Business 24/3 23/3 24/3 23/3 24/3 23/3 24/3 23/3 24/3 23/3 Period 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half Net sales 4,31
Slide 11: Car Dealership, BtoB and Online Alliance Business Sales and Operating Income Changes
Car Dealership, BtoB and Online Alliance Business Sales and Operating Income Changes In the BtoB Business, sales and profits increased due to the contribution of consolidated subsidiaries against the backdrop of demand for vehicle maintenance. In the Online Alliance Business, although sales increase
Slide 12: Car Dealership, BtoB and Online Alliance Business Overviews
Car Dealership, BtoB and Online Alliance Business Overviews Car Dealership Online Alliance BtoB Business Business Business ✓ ✓ Steady increase in the number ✓ Launched “MOBILA”, a general Car Dealership, BtoB and The number of new cars sold and Online Alliance Business the number of used cars sold o
Slide 13: Initiatives to Achieve Management Emphasizing Capital Cost
Initiatives to Achieve Management Emphasizing Capital Cost The PBR is around 1. The Company will boost its PBR by （倍） increasing capital efficiency and corporate value. （Times） PBR・ROE 2 10% Initiatives PBR ROE(%) Management Emphasizing ✓ Emphasizing Initiatives to Achieve 7.0% capital cost and Capi
Slide 14: Assumption of Business Environment for FY March 2024
Assumption of Business Environment for FY March 2024 ✓ Moderate recovery trend led by domestic demand against a backdrop of normalization of socioeconomic activities. Positive factors ✓ Demand increase of car electronics and accessories reflecting the recovery of new car production. ✓ Demand increas
Slide 15: Consolidated Financial Forecast for FY March 2024
Consolidated Financial Forecast for FY March 2024 Extraordinary loss, etc. due to the closure of certain stores in France will be recorded in the 2nd half. The full year forecasts is revised. AUTOBACS SEVEN Announces Expected Extraordinary Loss Related to Partial Store Closures of Overseas Business
Slide 16: Segment Forecast for FY March 2024
Segment Forecast for FY March 2024 1st Half 2nd Half （FY plan – 1H result） FY March 2024 Full Year Result YoY Plan YoY Plan YoY (Million yen) Domestic Sales 81,541 +4.4% 94,728 -1.8% 176,270 +1.0% AUTOBACS Operating Financial Forecast Business 7,875 -0.6% 12,614 -5.3% 20,490 -3.5% income Sales 7,771
Slide 17: Dividends and Share Buyback Forecast for FY March 2024
Dividends and Share Buyback Forecast for FY March 2024 Dividends per Share Dividends and Share Buyback （Yen） （Billion Yen） 80 1st Half 10 Amount of Share Buyback 2nd Half Dividends Paid 8 Financial Forecast 60 6 3.0 30 30 30 40 4 20 4.73 4.67 4.67 30 30 30 2 0 0 FY March FY March FY March FY March F
Slide 18: Capital Expenditures & Depreciation Forecast for FY March 24
Capital Expenditures ＆ Depreciation Forecast for FY March 2024 Capital Expenditures Depreciation （Billion Yen） （Billion Yen） 9 6 7.78 5.2 8 7.18 5 4.4 4.3 Financial 7 Forecast 6.30 4.2 3.9 6 4 5 4.65 3.99 3 2.5 4 3.42 3 2 2 1 1 0 0 FY March FY March FY March FY March FY March FY March FY March FY Ma
Slide 19: Initiatives in 1st Half of FY March 2024
Initiatives in 1st Half of FY March 2024 Representative Director & Chief Executive Officer Yugo Horii
Slide 20: Chain Policy for FY2023
Chain Policy for FY2023 “Increase the number of customers by improving quality" 2023/06/30 News: Acquired No. 1 automotive goods retailer in the "Automotive Goods Survey" for two consecutive years! 2023/10/03 News: AUTOBACS CARS has been ranked 1st overall for the third consecutive year in the 2023
Slide 21: Priority Initiatives
Priority Initiatives １． Improve execution and increase speed ２． Strengthen initiatives for sustainable growth Initiatives Priority ３． Continue human resource development initiatives 20
Slide 22: Priority Initiatives Review of the 1st half
Priority Initiatives Review of the 1st half １． Improve execution and increase speed - Development of ROIC by business - Review of business portfolio - Strengthening initiatives for strategic businesses ２． Strengthen initiatives for sustainable growth Initiatives Priority - “Evolution as a Retailer"
Slide 23: Development of ROIC by business
１． Improve execution and increase speed Development of ROIC by business ◼ Business portfolio optimization - Pursue optimal allocation of capital - Maximize returns and reduce wasted capital ● Using ROIC to evaluate General Managers ◼ Improve profitability ● Visualizing ROIC on a General Manager basi
Slide 24: Review of business portfolio
１． Improve execution and increase speed Review of business portfolio ◼ Major Initiatives in 1st Half - Established the Car Trading Business as an independent business to strengthen used car purchasing and sales. - Established the ASM* Enhancement Department in the Domestic AUTOBACS Business to stren
Slide 25: Strengthening initiatives for strategic businesses
１． Improve execution and increase speed Strengthening initiatives for strategic businesses ◼ Responding to the proliferation of ZEVs, including EVs - Opened “Hyundai Mobility Lounge Tokyo Bay Shinonome” Second location following A PIT AUTOBACS KYOTO SHIJO - BYD new store opened (Store opening prepar
Slide 26: Evolution as a Retailer by integrating online and physical stores
２． Strengthen initiatives for sustainable growth “Evolution as a Retailer” by integrating online and physical stores ◼ Offering Seamless Customer Buying Experience - Strengthened store pick-up Strengthened store pick-up and providing products and services to customers quickly by selling products and
Slide 27: Evolution from a Retailer through DX by utilizing unique data
２． Strengthen initiatives for sustainable growth “Evolution from a Retailer" through DX by utilizing unique data ◼ Proposal of optimal mobility life for customers - Changing the membership program An app comprehensively manages information and supports customers' car lifestyles. Changed booking scre
Slide 28: Responding to automobile safety and security
２． Strengthen initiatives for sustainable growth Responding to automobile safety and security ◼ Expanding Corporate Solutions Business FLEETGUIDE, a cloud-based company car management system, started to provide the service. - Manages daily driving reports, operation control records, due dates for st
Slide 29: Continue human resource development initiatives
３． Continue human resource development initiatives Construct a personnel structure to steadily implement the strategy ■ Recruitment, development, and retention of vehicle mechanics - Held short-term courses for Class 2 and Class 3 mechanics - Held new preparation course for Class 1 mechanic exam End
Slide 30: Medium- to long-term growth strategies
Medium- to long-term growth strategies ■ Long-term vision 「Beyond AUTOBACS Vision 2032」 - Purpose of AUTOBACS SEVEN Group Promoting traffic safety in society and enriching customers' lives - Direction of the AUTOBACS SEVEN evolution To become a company that consistently proposes Medium- to long-term
Slide 31: Initiatives for ESG・SDGs: APPENDIX
Initiatives for ESG・SDGs : APPENDIX Results of Materiality Non-financial targets Range KPI Goals for 2030 Initiatives 2022 Consolidated Selling products for preventing accidents 190,000/year 230,000/year Promoting efforts to achieve zero Building bases for tire check-up and emergency Consolidated 23
Slide 32: Initiatives for ESG・SDGs: APPENDIX
Initiatives for ESG・SDGs : APPENDIX KPI： Installation of rapid chargers KPI： Encouraging male employees to take childcare leave Installing rapid chargers particularly at stores Holding meetings to discuss male employees in Tokyo and other urban areas where electric taking childcare leave within the
Slide 33: Initiatives for ESG・SDGs: APPENDIX
Initiatives for ESG・SDGs : APPENDIX Non-financial targets： Promoting efforts to achieve Non-financial targets： Promoting efforts to achieve zero traffic accidents zero traffic accidents Have launched the full-scale, nationwide on- Awareness-Raising Activities during the site installation of equipmen
Slide 34: Initiatives for ESG・SDGs: APPENDIX
Initiatives for ESG・SDGs : APPENDIX Non-financial targets ： Promoting social contribution related Non-financial targets ： Developing a corporate culture where to automobiles diverse employees can demonstrate their capabilities Donation of 10 vehicles to the Japan Car Creating opportunities for disab
Slide 35: Initiatives for ESG・SDGs: APPENDIX
Initiatives for ESG・SDGs : APPENDIX KPI： Reviewing/formulating and conforming with ESG- and Initiatives for the Environment SDG-related policies Established Sustainability Basic Policy, Reduction target: Carbon neutrality Human Rights Policy and Other Related Policies in fiscal 2050 （Net-zero emissi
Slide 36: TOPICS: Brand Business Initiatives
Five-year Rolling Plan: APPENDIX Brand Business Initiatives of each business May 2023 Grand opening of the concept store “ARTA MECHANICS & INSPIRATIONS” - Aiming to create an experiential facility where users can receive “inspiration,” a space where they can enjoy unusual experiences and have fun wi
Slide 37: TOPICS: Efforts to create networks
Five-year Rolling Plan: APPENDIX Efforts to create networks Overseas Alliance Overseas Business Network Establishment of More Complete Automotive Ecosystem in Malaysia with KOPFALAH, a Government-Approved Cooperative, for the Sale and Maintenance of Quality Japanese Used Cars - KOPFALAH provides cre
Slide 38: TOPICS: Achieving CDE through digital ecosystem
Five-year Rolling Plan: APPENDIX Information Infrastructure Efforts to create networks Achieving “CDE” through digital ecosystem *CDE : Customer Deep Engagement A strategy to engage with customers more deeply, longer, and more directly Established AUTOBACS Digital Initiative Co., Ltd. April 3, 2023
Slide 39: Used Car Purchasing and Sales
1st Half of FY March 2024 Used Car Purchasing and Sales Total 18,356cars YoY +18.0％ BtoB Sales Retail Details No. of cars sold Details No. of cars sold Sales to Headquarters 704 Used cars 3，570 Sales to AA(Auto Auction) via 2，574 New cars 1,907 Headquarters Direct sales from stores 9，601 BtoB total
Slide 40: Domestic Store Sales/Number of Purchasing Customers Changes
Domestic Store Sales/Number of Purchasing Customers Changes [Same store basis (YoY)] 1st Half Sales: +2.5% Number of purchasing customers: -2.3% Sales 10% 0% -10% 10% Number of Purchasing Customers 0% -10% 2022 2023 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Environment Relaxing behavioral rest
Slide 41: Store Openings and Closings
Store Openings and Closings FY March 2024 No. of 1st Half (Result) No. of 2nd Half (Plan) No. of Domestic stores at stores at stores at March 31, New S&B R/L Close Sep 30, New S&B R/L Close March 31, 2023 2023 2024 AUTOBACS 496 +1 +1/-1 497 +５ +3/-3 ５０2 Super AUTOBACS 74 74 74 AUTOBACS Secohan Ichib
Slide 42: Balance Sheet: Assets
Balance Sheet: Assets 183.1BY 221.8BY 194.3BY 191.0BY 197.2BY （Billion Yen） 29.3 Cash and deposit 24.5 25.3 35 Notes and 35.6 22.5 accounts receivable - 26.1 22.9 26.1 26.9 trade Merchandise 26.1 Accounts 23.8 25.6 25.8 24.3 receivable - other 33.9 19.3 27.1 18.9 19.3 Other current assets 11 13.7 9.
Slide 43: Balance Sheets: Liabilities and Equity
Balance Sheets: Liabilities and Equity 183.1BY 221.8BY 194.3BY 191.0BY 197.2BY （Billion Yen） Notes and 34.7 accounts payable - trade 7.1 17.6 19.1 25.0 14.6 1.8 0.9 20.2 15.7 1.9 1.2 Short-term 12.6 12.9 12.4 borrowings 13.6 11.8 16.1 12.7 11.0 5.7 4.6 6.6 6.5 6.5 Accounts 11.7 12.0 11.8 11.7 11.1 p
Slide 44: Change of Segment
Change of Segment Reviewed the business portfolio and changed the reportable segments as follows (changes: in red) Segments before change Segments after change Domestic AUTOBACS Business Domestic AUTOBACS Business - Functions to promote and manage used car purchasing and sales - Property development
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 forecasts made in accordance with information currently available. Actual results may differ materially from forecasts due to suc
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