Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — H1 FY March 2022 Earnings Presentation
45 slides from Autobacs Seven's earnings presentation, Nov 1, 2021
Slide 1: Results for the Six Months ended September 30, 2021
Results for the Six Months ended September 30, 2021 November 1, 2021 AUTOBACS SEVEN CO., LTD.
Slide 2: Table of Contents
Table of Contents Results for the Six Months Ended September 30, 2021 ＆ Forecasts for Second Half and Full Year Earnings 1. Overview of Business Results 1. P.3 2. Domestic AUTOBACS Business 2. P.8 3. Overseas Business 3. P.10 4. Car dealership ,BtoB and 4. P.12 Online Alliance Business 5. Second hal
Slide 3: Results for the Six Months and Forecasts for Second Half and Full Year
Results for the Six Months ended September 30, 2021 and Forecasts for Second Half and Full Year Earnings Officer Finance & Accounting and IR & PR Tomoaki Ikeda 2
Slide 4: First Half of FY March 2022 Consolidated P/L
Overview of Business Results First Half of FY March 2022 Consolidated P/L The 1st half operating income plan was achieved, although sales were affected by the rapid COVID-19 infection rate in the summer. The Domestic AUTOBACS Business was affected by people refraining from going out or returning to
Slide 5: Highlights of Consolidated Financial Results for 2Q FY March 2022
Overview of Business Results Highlights of Consolidated Financial Results for 2Q FY March 2022 Domestic ✓ Sales increased in April and May in reaction to the decline in the previous fiscal year. Business was affected by people refraining from going out or returning to their hometowns due to the rapi
Slide 6: 2Q FY March 2022 Consolidated P/L Five Years Transition
Overview of Business Results 2Q FY March 2022 Consolidated P/L Five Years Transition Sales increased and income decreased YoY, but sales and income increased compared to the usual year without any special factors. *1st half of March FY2018, 1st half of March FY2019 （Billion Yen） Sales （Billion Yen）
Slide 7: Operating Income (Difference from Plan)
Overview of Business Results Operating Income (Difference from Plan) Achieved the plan of operating income in the first-half thanks to domestic AUTOBACS business and car dealer, BtoB and online alliance business （Million Yen） 6
Slide 8: Segment Information
Overview of Business Results Segment Information *For reference purposes only Six months ended Six months ended （Million Yen） Sep 30, 2021 Sep 30, 2020 YoY* Summary Sales 79,071 80,009 -1.2% The business was significantly affected by people refraining from going out or Domestic Gross profit 26,653 2
Slide 9: Retail Sales in Total AUTOBACS Group Stores
Domestic AUTOBACS Business Retail Sales in Total AUTOBACS Group Stores RETAIL SALES INCLUDING FCs: 121.4 billion yen (+0.6% YoY) Result YoY (Billion Yen) 120.6 121.4 140 Second hand 2.1BY +12.4% 2.1 goods & Fuel 120 1.8 9.7 10.4 10.4BY +6.5% 12.1 14.4 Statutory safety 100 324,000 inspection +7.1% Ca
Slide 10: 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） 1,000 Car Electronics Motor Sports Car Leisure Accessories 500 Motorcycle Car Repair Batteries 227 218 Goods Items Goods 171 Goods 162 30 0 Maintenan
Slide 11: Overseas Business: Change in Sales and Operating Income
Overseas Business Change in Sales and Operating Income Sales increased by strengthening wholesaling, especially in Australia where sales are strong. SG&A expenses increased in reaction to the previous year. Main factor: (Million Yen） (Million Yen） Retail Wholesale Sales and gross profit increased Sa
Slide 12: Performance by Overseas Subsidiaries
Overseas Business Performance by Overseas Subsidiaries （Million Yen） France Singapore China Malaysia Australia Thailand Number of stores 10 2 0 4 0 22 22/3 21/3 22/3 21/3 22/3 21/3 22/3 21/3 22/3 21/3 22/3 21/3 Period 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q Net sales 3,257 2,993 633 774 484 379 17 16 1,
Slide 13: Car Dealership, BtoB and Online Alliance: Change in Sales and Operating Income
Car Dealership, BtoB and Online Alliance Business Change in Sales and Operating Income Car dealership, BtoB Business remained steady. Operating loss decreased. Main factor: (Million Yen） In Car dealership and BtoB business, in addition to existing businesses, two (Million Yen） 25,000 companies that
Slide 14: FY March 2022 Expectations for the Business Environment
Second half and full year earnings forecast FY March 2022 Expectations for the Business Environment Positive Factors ✓ Economic recovery is expected due to the rising vaccination rate and the effects of various political measures ✓ Strong demand to continue in fields where performance is favorable,
Slide 15: Full-Year Forecasts for FY March 2022
Second half and full year earnings forecast Full-Year Forecasts for FY March 2022 No changes to the full-year forecasts from the initial plan Full year 1st Half 2nd Half （no changes from initial plan） Actual Forecast YoY （Revised） YoY Forecast YoY （Billion Yen） results Net sales 103.5 +3.8% 122.9 +1
Slide 16: 2nd Half and Full Year Earning Forecasts by Reporting Segment
Second half and full year earnings forecast 2nd Half and Full Year Earning Forecasts for FY March 2022 Reporting Segments Full year 1st Half 2nd Half （no changes from initial plan） Forecast Results YoY YoY Forecast YoY （Million Yen） （Revised） Domestic Sales 79,071 -1.2% 90,338 -7.7% 169,410 -4.8% AU
Slide 17: Acquisition of Own Shares and Dividends
Second half and full year earnings forecast 2nd Half and Full Year Earning Forecasts for FY March 2021 Acquisition of own shares and Dividends Dividends per share Acquisition of own shares Dividends and Share buyback Aggregate Aggregate （Billion Yen） （Yen） Amount of share buyback Acquisition Type of
Slide 18: Capital Expenditures & Depreciation
Second half and full year earnings forecast 2nd-half and full year earnings forecast for FY March 31, 2022 Capital Expenditures ＆ Depreciation Capital Expenditures Depreciation （Billion Yen） （Billion Yen） 6 7 5 4.84 6 4.61 3.99 5 4 4.4 3.58 3.65 4.2 4.2 3.42 4.0 3.7 3.9 4 3 3 2 2.1 1.66 2 1 1 0 0 20
Slide 19: Five-Year Rolling Plan and Initiatives for ESG・SDGs
Results for 1st Half of FY March 2022 Five-Year Rolling Plan and Initiatives for ESG・SDGs Representative Director and Chief Executive Officer Kiomi Kobayashi 18
Slide 20: Management Mission
Five-Year Rolling Plan Management Mission AUTOBACS has always been committed to providing customers with the best solutions for their car lifestyles and creating a rich and healthy automotive society. 19
Slide 21: Our Goals through Five-Year Rolling Plan
Five-Year Rolling Plan 1．Our Goals through Five-Year Rolling Plan Actively promote collaboration across business boundaries to improve customer convenience 20
Slide 22: Effort in March FY2022: Policy
Five-Year Rolling Plan ２．Effort in March FY2022 （１）Policy ◼ Continuation of efforts to increase contact points with customers ◼ Strengthen active response to environmental changes 21
Slide 23: Results for Network Creation
Five-Year Rolling Plan ２．Results for 1st Half of FY March 2022 （２）Results for network creation （As of September 2021） Operates Authorized Dealers Joyful Shaken and Tire Business Alliance With Nissan of Audi Center to “AUTO In” Multi-Dealer Next-Generation Service Pit Automotive Automotive Product su
Slide 24: Participation in EV Market
Five-Year Rolling Plan ２．Results for 1st Half of FY March 2022 （３）Participation in EV market October 2021: Invested in HW ELECTRO（News released on October 28） Aiming to reduce environmental impact by promoting the spread of EVs through collaboration and cooperation with HW ELECTRO 23
Slide 25: Effort in March FY2022: Business Infrastructures
Five-Year Rolling Plan ２．Effort in March FY2022 （３）Business Infrastructures Infrastructure Efforts in the first half Future efforts Promoted the establishment of workplaces where workers have • Cultivating young leaders and job satisfaction executive candidates Human • Empowering women • Introduced
Slide 26: Effort in March FY2022: Domestic AUTOBACS Business
Five-Year Rolling Plan ２．Effort in March FY2022 （４）Business Business Efforts in the first half Future efforts Enhanced measures for the development of human resources • Improving work environments and next generation vehicle maintenance • Human resource development and a culture of praising people •
Slide 27: Effort in March FY2022: Overseas Business
Five-Year Rolling Plan ２．Effort in March FY2022 （４）Business Business Efforts in the first half Future efforts Expansion of wholesale business • Expansion of wholesale Overseas • Success of AudioXtra’s (Australia) wholesale through the Authorized Business • Expand sales of private brand products for
Slide 28: Effort in March FY2022: Car Dealership, BtoB and Online Alliance
Five-Year Rolling Plan ２．Effort in March FY2022 （４）Business Business Efforts in 1st Half Efforts in future Acquired a new brand and promoted the rationalization of • Continuing to improve profitability Car dealership management • Strengthening human resources Business • Acquired all shares of TA Imp
Slide 29: Five-Year Rolling Plan: Efforts to Create Networks
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX Efforts to create networks ◼ Operates three Authorized ◼ AUTO IN Shaken and Tire Dealers of Audi Center Next- Automotive Multi-Dealer Generation Service Pit related Network Maintenance Network Goods Sales Network Network • Start operating the t
Slide 30: Business Alliance With Nissan
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX ◼ Business Alliance With Nissan Efforts to create networks Automotive related Goods Sales Network • Introduced automotive goods (such as car interior goods and car washing goods) in new car brochures • Handled at approx. 2,100 Nissan dealer sho
Slide 31: Creating a Local Network for Maintenance
Five-Year Rolling Plan 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 for responding promptly to changes in the environment surrounding the maintenance industry, th
Slide 32: Opened a New ADAS Calibration Center
Five-Year Rolling Plan 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 mo
Slide 33: Enhanced Collaboration with Tesla Service Center; App Upgraded
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX Efforts to create networks ■ Enhanced collaboration with the Tesla ■ AUTOBACS app upgraded Service Center Automotive （A PIT AUTOBACS SHINONOME） related Goods Sales Network Automotive related Goods ⚫ The facility also has the ability to record v
Slide 34: Initiatives for ESG・SDGs: Materiality
ESG・SDGs ３． Initiatives for ESG・SDGs Materiality was identified through discussions at the Board of Directors Society we want to realize Our ideal The society in which people and cars are in Professional & Friendly harmony Social issues that we should solve Materiality 33
Slide 35: Efforts Related to ESG and the SDGs
ESG・SDGs ３． Initiatives for ESG・SDGs ■ Efforts related to ESG and the SDGs May 2021: Announced material issues September 2021: Development into a company-wide project/commencement of consideration of non-financial targets Future: Strive to create new businesses by resolving social issues. Improve co
Slide 36: Structure of ESG & SDGs Project
ESG・SDGs ３． Initiatives for ESG・SDGs Structure of ESG & SDGs Project Project Leader Chief Executive Officer Representative Director General Manager（2) Officer Accounting / Finance / Public Relations / IR Officer Human Resources, General Affairs and Legal General Leader（2） General Manager of Corporat
Slide 37: Examples of Past Initiatives under Agreement with Oita Prefecture
ESG・SDGs ３． Initiatives for ESG・SDGs Examples of Past Initiatives under the Comprehensive Collaborative Agreement with Oita Prefecture (Excerpts) Providing support for traveling and support for Empowering women and daily living in the field of care and welfare fostering young people ■ Demonstration
Slide 38: Application of Accounting Standard for Revenue Recognition
Other Documents (Reference: Application of Accounting Standard for Revenue Recognition, etc.) Starting from the beginning of the first quarter of the fiscal year ending March 31, 2022, the Group adopted the Accounting Standard for Revenue Recognition, etc. Sales with return rights The amounts of imp
Slide 39: Automobile Purchase and Sales Business
Other Documents Automobile Purchase and Sales Business Total 14,356cars YoY +7.7% BtoB Sales Retail Details No. of cars sold Details No. of cars sold To AUTOBACS 282 Used cars 3,571 SEVEN Sales to AA via AUTOBACS 2,075 New cars 1,775 SEVEN Direct sales 6,653 from stores BtoB total 9,010 Retail total
Slide 40: YoY Change of Sales/Number of Purchasing Customers
Other Documents YoY Change of Sales/Number of Purchasing Customers [Same store basis (YoY)] Sales: +0.5%, Number of purchasing customers: -2.6% Same store sales and number of purchasing customers at domestic AUTOBACS-chain stores (YoY) 30% Sales 0% -30% 30% Number of Purchasing Customers 0% -30% Oct
Slide 41: Store Openings and Closings
Other Documents Store Openings and Closings FY March 2022 Domestic No. of 2Q (Result) No. of 3Q-4Q (Plan) No. of stores at stores at stores March 31, New S&B Close Sep 30, New S&B Close stores at March 31, 2021 R/L 2021 R/L 2022 AUTOBACS 490 +１ +2/-2 491 +3 +1/-1 494 Super AUTOBACS 74 74 74 AUTOBACS
Slide 42: Balance Sheet: Assets
Other Documents Balance Sheet: Assets 180.5BY 209.8BY 187.9BY 179.7BY 176.5BY （Billion Yen） 35.8 Cash and deposits 38.9 30.6 24.0 34.9 Trade notes 38.9 and accounts 23.5 23.4 24.2 receivable 24.5 Merchandise 20.6 18.3 20.3 21.3 20.1 Accounts 29.0 21.9 15.1 16.6 receivable 16.3 8.5 7.7 9.7 10.0 Other
Slide 43: Balance Sheets: Liabilities and Equity
Other Documents Balance Sheets: Liabilities and Equity 180.5BY 209.8BY 187.9BY 179.7BY 176.5BY （Billion Yen） Accounts 32.9 payable - other 13.8 15.3 5.6 5.8 13.9 Short-term 1.6 15.8 borrowings 6.4 19.8 15.1 11.7 1.4 12.2 10.8 Accounts 9.5 11.7 11.8 payables 8.4 2.7 2.5 2.9 10.71.9 1.7 15.3 14.9 15.3
Slide 44: Cash Flows
Other Documents Cash Flows Consolidated Cash flows (1st Half) （Million Yen） 4,000 307 0 -4,000 -2,808 -8,000 -12,000 -12,371 -16,000 Operating CF Investing CF Financing CF Breakdown of major investments End of September 2021 • Investment to IT related Cash and cash equivalents: 24.0BY • Renovation o
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
Autobacs Seven — H1 FY March 2022 Earnings Presentation on 6ix