Slide 1: Fiscal 2018 Financial Results Presentation
Financial Results Presentation Fiscal 2018 Financial Results Presentation January 11, 2019 NEXTAGE Co., Ltd. (3186) 1
Slide 2: Contents
Contents 1. Results Overview 2. Fiscal 2019 Initiatives 3. Reference Information 2
Slide 3: Fiscal 2018 Results (Full-year)
Fiscal 2018 Results (Full-year) Performance highlights (December 2017 to November 2018) ¥163,174 million (Achievement (YoY: +37.2%) Consolidated net sales of full fiscal year target: 100.1%) (YoY: +26.2%) Consolidated operating income ¥4,384 million (Achievement of full fiscal year target: 100.8
Slide 4: Overview of the Fiscal 2018 Results (Full-year)
Overview of the Fiscal 2018 Results (Full-year) Net sales: Up 37.2% YoY with the full contribution of quasi-existing dealerships opened last year Gross profit margin: 16.6% (up 0.6% YoY) due to improved inventory turnover rate Ordinary profit: up 26.7% YoY (the twelve months ended November 2018 post
Slide 5: Store Openings in Fiscal 2018
Store Openings in Fiscal 2018 End of End of Change in Fiscal Q1 Q2 Q3 Q4 Fiscal Fiscal 2017 2018 2018 Medium-sized Integrations/ 29 −1 −2 dealerships (Japanese closings/format −2 storefronts −1 storefront 23 storefronts −6 storefronts storefronts changes storefront storefronts cars) New store 2 Gene
Slide 6: Market Environment in Fiscal 2018
Market Environment in Fiscal 2018 Domestic used car registrations Japan Automobile Dealers Association Japan Light Motor Vehicle and Motorcycle (Ordinary passenger cars) Association (Kei (light) cars) 500,000 450,000 450,000 400,000 400,000 350,000 350,000 300,000 300,000 250,000 250,000 200,000 200
Slide 7: Sales in Fiscal 2018
Sales in Fiscal 2018 Monthly retail car sales volume and YoY comparison Car sales volume increased by 26.6% year on year, but the market environment remains severe. Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Fiscal 2018 Fiscal 2017 sales sales Monthly retail
Slide 8: The Three Arrows (Sales, Purchasing, and Maintenance), plus Net Premiums Written
The Three Arrows (Sales, Purchasing, and Maintenance), plus Net Premiums Written Retail car sales (December 2017 to November 2018) ◎ 57,745 vehicles (YoY: + 26.6%) Vehicle purchases (December 2017 to November 2018) ◎ 26,398 vehicles (YoY: +89.5%) Vehicle safety inspections (December 2017 to November
Slide 9: New Openings in Q4 (General Store)
New Openings in Q4 (General Store) Saturday, November 3, 2018 Inside store NEXTAGE Toki-Tajimi Grand opening!! One of the largest in the area! Large play space Large-space maintenance workshop 9
Slide 10: New Openings in Q4 (Imported Car Store)
New Openings in Q4 (Large-scale store dedicated to imported cars) Friday, November 23, 2018 Next to VOLVO Car Fukui UNIVERSE Fukui Grand opening! Inside store One of the largest in the area! Maintenance workshop 10
Slide 11: New Vehicle Dealership Business in Q4
New Vehicle Dealership Business in Q4 Friday, November 23, 2018 Next to UNIVERSE Fukui VOLVO Car Fukui Inside Grand opening! store Fourth Volvo dealership New showroom CI “VRE” 11
Slide 12: Consolidated Balance Sheets – Assets
Consolidated Balance Sheets – Assets (Millions of yen) As of As of Item Nov. 30, 2017 Nov. 30, 2018 Change Remarks Fiscal 2017 (Q4) Fiscal 2018 (Q4) Current assets 26,368 47,673 +21,304 Cash and deposits 6,670 16,523 +9,853 Merchandise 15,217 23,347 +8,129 Influence of new store openings Accounts re
Slide 13: Consolidated Balance Sheets – Liabilities and Net Assets
Consolidated Balance Sheets – Liabilities and Net Assets (Millions of yen) As of As of Item Nov. 30, 2017 Nov. 30, 2018 Change Remarks Fiscal 2017 (Q4) Fiscal 2018 (Q4) Current liabilities 12,186 20,744 +8,558 Accounts payable – trade 2,301 4,603 +2,301 Short-term loans payable 4,813 8,138 +3,325 Wo
Slide 14: Growth of Existing Dealerships
Growth of Existing Dealerships YoY comparison of net sales of existing dealerships (Millions of yen) Previous year Current year 140,000 128,642 120,000 110,987 96,901 100,000 83,322 78,238 80,000 57,154 60,000 49,390 44,524 40,371 36,215 40,000 20,000 0 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 201
Slide 15: Capital Policy and Returns to Shareholders
Capital Policy and Returns to Shareholders The capital policy implemented in Fiscal 2018 was as follows: ■December 2017 Three-for-one stock split became effective The Company has paid dividends in a stable manner as its basic policy of returning profits to its shareholders. The dividend for Fiscal 2
Slide 16: Contents
Contents 1. Results Overview 2. Fiscal 2019 Initiatives 3. Reference Information 16
Slide 17: Consolidated Operating Results Forecasts for Fiscal 2019
Consolidated Operating Results Forecasts for Fiscal 2019 Percent of (Millions of yen) Plan YoY net sales Net sales 215,000 131.8% 100.0% Operating income 5,700 130.0% 2.7% Ordinary income 5,500 131.4% 2.6% Profit attributable to owners of parent 3,600 123.7% 1.7% Retail car sales 72,000 vehicles - -
Slide 18: Policy for Initiatives for Fiscal 2019
Policy for Initiatives for Fiscal 2019 Improving and strengthening our businesses (1) (2) (3) Expand large- Strengthen new Enhance sized vehicle education and dealerships dealerships governance Promote lifelong customer [Plan] structure relationships / transactions within a ・ Increase sales of new/c
Slide 19: Our Business Model
Our Business Model Fiscal 2019 Initiatives: Develop a system that enables us to offer full services and enhance proposals outside the regular business cycle. A good selection of products, high quality, Propose support for car users vehicle lineup, competitive prices Support for users’ family members
Slide 20: Our Strategy on Inventory Turnover Rate
Our Strategy on Inventory Turnover Rate Why “inventory turnover rate”? ■Invisible fixed costs associated with our products Profit Profit up - Rent for stores - Utility costs for stores Fixed costs - Personnel costs for store staff, etc.… Fixed monthly costs Price down Fixed Fixed Fixed costs costs c
Slide 21: Fiscal 2019 Store Opening Plan
Fiscal 2019 Store Opening Plan Format End of End of Fiscal Change in Fiscal 2018 changes at the beginning Q1 Q2 Q3 Q4 2019 Fiscal 2019 of Fiscal 2019 Medium-sized 23 18 Integrations −1 −1 16 −2 dealerships (Japanese cars) storefronts storefronts Format changes storefront storefront storefronts store
Slide 22: Enhancing Authorized Imported Car Dealership Business
Enhancing Authorized Imported Car Dealership Business Change in imported vehicle registrations in Japan (passenger cars) 305,043 300,000 units 294,060 288,830 284,471 278,846 250,000 units 239,546 203,800 200,000 units 192,317 180,255 159,143 150,000 units 100,000 units 2008 2009 2010 2011 2012 2013
Slide 23: Business Model for the General Stores
Enhancing Authorized Imported Car Dealership Business Business Model for the Transac- General Stores Lifelong tions within customer relationships a household Business with recurring A business model that helps us to grow every revenue year Key to increase profits (1) New car sales volume Authorized
Slide 24: Education at NEXTAGE
Education at NEXTAGE NEXTAGE hired a record-high 399 new graduates and a number of mid-career workers in Fiscal 2018. As we expect to hire more new graduates and mid-career workers, timely and relevant education will serve as a growth engine. It is imperative to develop an education system and prepa
Slide 25: Education at NEXTAGE
Education at NEXTAGE Objectives of training We offer various training programs, all of which have specific objectives. Reinforce sales capabilities, set career goals, share values and visions, develop human resources quickly, reduce staff turnover, share company policies, develop store managers, etc
Slide 26: Enhancing Governance Structure
Enhancing Governance Structure [Current status] Raising The Risk Management Committee is responsible Risk identification by each department issues for identifying risks associated with the Company, taking actions and mitigating such risks. [Issues] A problem occurred due to lack of awareness of Revi
Slide 27: CSR Initiatives
CSR Initiatives Donation to Kumamoto Castle NEXTAGE makes donations in proportion to the number of cars sold and vehicle safety inspection carried out. The initiative started in January 2017, in proportion to the number of cars and vehicle safety inspection carried out in Kumamoto prefecture. Under
Slide 28: Market Size of Car Industry
Market Size of Car Industry Retail used car Trade-in and Maintenance New import market purchasing used car market vehicle market market Approx. Approx. Approx. Approx. ¥2.8 trillion ¥2.0 trillion ¥5.3 trillion ¥1.5 trillion (Vehicle safety (Approx. (Approx. 2.7 (Approx. 4.0 inspection: million milli
Slide 29: Net Sales of Trillion Yen in 2030
Net Sales of 1 Trillion Yen in 2030 Net sales of used car dealership bases: 800 billion yen Net sales of new car dealership bases: 200 billion yen Total net sales: 1 trillion yen 29
Slide 30: Contents
Contents 1. Results Overview 2. Fiscal 2019 Initiatives 3. Reference Information 30
Slide 31: Reference Information
Reference Information YoY comparison on existing-store basis (quarterly) (¥ million, %) YoY comparison on existing-store basis (quarterly) (¥ million, %) Net sales Q1 Q2 Q3 Q4 Operating income Q1 Q2 Q3 Q4 FY2013 8,134 9,492 8,974 10,634 FY2013 473 590 407 820 Fiscal 2014 FY2014 8,830 7,728 8,532 11,
Slide 32: Reference Information
Reference Information New store openings (¥ million, %) New store openings (¥ million, %) Q1 Q2 Q3 Q4 Operating Q1 Q2 Q3 Q4 Net sales income Quarter 3,092 3,325 2,385 2,729 Quarter 83 152 56 93 Fiscal 2014 Cumulative 3,092 6,417 5,949 6,365 Fiscal 2014 Cumulative 83 224 151 174 YoY 146.5% 179.6% 108
Slide 33: Reference Information
Reference Information Car sales-related (¥ million, %) Maintenance-related (¥ million, %) Net sales Q1 Q2 Q3 Q4 Total Net sales Q1 Q2 Q3 Q4 Total (1) Fiscal 2013 7,404 8,602 8,228 10,155 34,390 (1) Fiscal 2013 127 143 136 149 556 (2) Fiscal 2014 11,123 10,263 9,765 12,404 43,556 (2) Fiscal 2014 163
Slide 34: Reference Information
Reference Information (¥ thousand) Consolidated Q1 Q2 Q3 Q4 Full year statements of income Fiscal 2016 Fiscal 2017 YoY Fiscal 2016 Fiscal 2017 YoY Fiscal 2016 Fiscal 2017 YoY Fiscal 2016 Fiscal 2017 YoY Fiscal 2016 Fiscal 2017 YoY Net sales 19,240,940 27,092,501 40.8% 22,695,343 30,472,194 34.3% 21,
Slide 35: Notices
Notices Start of the distribution of the IR E-magazine The Company will distribute in a timely manner a variety of IR information to those people who register their email addresses on the Company website for its IR E-magazine. This initiative is intended to help people to understand the Company bett
Slide 36: Company Overview
Company Overview ■Company name NEXTAGE Co., Ltd. ■Address 14F, Meiji-Yasuda Life Insurance Nagoya Building, 1-1, Shinsakaemachi, Naka Ward, Nagoya, Aichi Prefecture, 460-0004, Japan ■Businesses Sales of new and used vehicles, automobile maintenance, purchases of used vehicles and an insurance agency