Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — H1 FY March 2021 Earnings Presentation
40 slides from Autobacs Seven's earnings presentation, Nov 2, 2020
Slide 1: Results for the Six Months ended September 30, 2020
Results for the Six Months ended September 30, 2020 November 2, 2020 AUTOBACS SEVEN CO., LTD.
Slide 2: Table of Contents
Table of Contents Results for the six months ended September 30, 2020 ＆ second half and full year earnings forecast １．Overview of Business Results P.３～ ２．Domestic AUTOBACS Business P.８～ ３．Overseas Business P.12～ ４．Car dealership ,BtoB and Internet Business P.13～ ５．Second half and full year earnings
Slide 3: Results for the Six Months ended September 30, 2020 and Forecasts for FY March 2021
Results for the Six Months ended September 30, 2020 and Forecasts for FY March 2021 Officer Finance & Accounting and IR & PR Tomoaki Ikeda 2
Slide 4: First Half of FY March 2021 Consolidated P/L
Overview of Business Results First Half of FY March 2021 Consolidated P/L Both sales and income decreased year on year chiefly due to external factors but rose from two years ago. In the Domestic AUTOBACS Business, sales decreased in April and May due to COVID-19 but returned to the level of the pre
Slide 5: 1st Half of FY Mar 2021 Consolidated P/L vs. two years ago
Overview of Business Results 1st Half of FY Mar 2021 Consolidated P/L vs. two years ago Significant increase in profit compared to 2 years ago In last 5 years, Operating income was the 2nd highest next to last year First half 1st-half comparisons (Billion Yen) First Half First Half Change from 2 Cha
Slide 6: Key points for the First half of FY March 2021
Overview of Business Results Key points for the First half of FY March 2021 ✓ Sales fell in April and May due to the COVID-19 infection spread but recovering from June (fell in September due to special demand in year ago). ✓ Sales trends for each merchandise category changed because of changes in th
Slide 7: Sales and profits by Reporting Segments
Overview of Business Results Sales and profits by Reporting Segments Sales Profits （Million Yen） (Million Yen） 100,000 10,000 90,881 8,222 90,000 Q2 FY2020 80,009 8,000 7,277 80,000 Q2 FY2021 70,000 6,000 60,000 4,000 50,000 40,000 2,000 34 30,000 0 18,129 18,440 -88 -210 -250 20,000 -322 -123 6,042
Slide 8: Segment Information
Overview of Business Results Segment Information Six months ended Six months ended （Million Yen） September 30, 2020 YoY Summary September 30, 2019 Sales 80,009 90,881 -12.0％ Sales recovered in June through August, reflecting an increase in the Gross profit 26,483 28,697 -7.7％ frequency of use of veh
Slide 9: Retail Sales in Total AUTOBACS Group Stores
Domestic AUTOBACS Business Retail Sales in Total AUTOBACS Group Stores RETAIL SALES INCLUDING FCs: 120.6 billion yen (-10.1% YoY) (Billion Yen) 134.1 120.6 Result YoY 140 2.3 Second hand goods & Fuel 1.8BY -19.7％ 10.0 1.8 120 14.9 9.7 9.7BY -2.8％ 100 12.1 Statutory safety inspection 303,000 -6.1％ ca
Slide 10: Q2 FY March 2021 Domestic Store Sales (Three-Year Comparison)
Domestic AUTOBACS Business Q2 FY March 2021 Domestic Store Sales (Three-Year Comparison) Retail sales including FCs: +6.5% from 2 years ago although there was a special demand in September last year. Q2 number of customers Q2 Sales 2 years ago comparison: +6.3％ 2 years ago comparison: +2.1％ 2018 201
Slide 11: Sales Variance by Merchandise (H1 FY2021)
Domestic AUTOBACS Business Sales Variance by Merchandise (H1 FY2021) Sales* changes by merchandise category(YoY change in amount; total store basis) (Million Yen） 2,000 Services (excl. Maintenance) Car Electronics Motor Sports Inspections/ Accessories Motorcycle 923 1,000 Wheels Goods Goods 236 222
Slide 12: Performance Results of Franchisees
Domestic AUTOBACS Business Performance Results of Franchisees Ordinary Income of Franchise Companies （億円） 80 56.1 59.1 60 50.2 40 32.7 16.6 （preliminary 20 result） 1.8 2.0 0 -1.6 -20 -40 -31.3 Total of profit-making FCs Total of profit-making subsidiaries Total of loss-making FCs Total of loss-makin
Slide 13: 1st Half of FY Mar 2021 Performance by Overseas Subsidiaries
Overseas Business 1st Half of FY Mar 2021 Performance by Overseas Subsidiaries (Million Yen） France Thailand Singapore China Malaysia Australia Number of stores* 10 16 2 0 5 0 21/3 20/3 21/3 20/3 21/3 20/3 21/3 20/3 21/3 20/3 21/3 20/3 Period 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q Net sales 2,993 3,705
Slide 14: Car Dealership, BtoB and Internet Business
Car Dealership, BtoB and Internet Business 1st half of FY March 31, 2021 Overview of Business results(Car dealership ,BtoB and Internet Business) Car Dealership Business ✓ A subsidiary that supervises the car dealer business was established, and it enhanced the sales operations at each base. ✓ Not o
Slide 15: Second half and full year earnings forecast
Second half and full year earnings forecast Second half and full year earnings forecast Positive Factors ✓ Strong demand to continue in fields where performance is favorable, reflecting an increase in the frequency of use of vehicles (Car washing supplies, car body damage repairs, car interior acces
Slide 16: Full-Year Forecasts for FY March 2021
Second half and full year earnings forecast Full-Year Forecasts for FY March 2021 No changes to the full-year forecasts from the initial plan Full Year 1st-Half 2nd-Half （no changes from initial plan） （Billion Yen） Results YoY Forecasts YoY Forecasts YoY Net sales 99.7 -10.2％ 124.0 12.4％ 223.8 +1.1％
Slide 17: Earnings forecast for FY March 2021 by Reporting Segments
Second half and full year earnings forecast 2nd-half and full year earnings forecast for FY March 31, 2021 Reporting Segments Full Year 1st-half 2nd-half （no changes from initial plan） Results YoY Forecasts YoY Forecasts YoY （Million Yen） Domestic AUTOBACS Business Net sales 80,009 -12.0％ 97,370 10.
Slide 18: Capital Expenditures & Depreciation
Second half and full year earnings forecast 2nd-half and full year earnings forecast for FY March 31, 2021 Capital Expenditures ＆ Depreciation Capital Expenditures Depreciation （Billion Yen） （Billion Yen） 7 7 5.89 6 6 4.84 5 4.61 5 4.4 4.4 4.2 4.0 3.8 3.7 4 3.58 4 3.42 3.3 3 3 （1Q-2Q） （1Q-2Q） 1.9 2
Slide 19: Dividends and Share buyback
Second half and full year earnings forecast 2nd-half and full year earnings forecast for FY March 31, 2021 Dividends and Share buyback Dividends per share Dividends and Share buyback （Yen） （Billion Yen） 80 1Q-2Q 12 Amount of share buyback 3Q-4Q Dividends paid 70 10 60 8 50 30 30 30 2.9 40 6 2.1 30 4
Slide 20: Response to COVID-19 and Five-year Rolling Plan 2020
Response to COVID-19 and Five-year Rolling Plan 2020 Representative Director and CEO Kiomi Kobayashi 19
Slide 21: Response to COVID-19
Response to COVID-19 Response to COVID-19 Protect the health of customers, business partners, and employees ～Don't get infected and don’t infect others～ Support the franchisees’ operation ～from financial and operational aspects～ 20
Slide 22: Efforts to Prevent the Spread of COVID-19
Response to COVID-19 Efforts to Prevent the Spread of COVID-19 Response of the AUTOBACS Group to the nationwide efforts to prevent the spread of COVID-19 ✓ Protect the health of customers, business partners, and employees: Full enforcement of activities to avoid developing an infection. ✓ Protect th
Slide 23: Efforts to Prevent the Spread of COVID-19
Response to COVID-19 Efforts to Prevent the Spread of COVID-19 Hygiene control at stores and service pits in AUTOBACS (examples) Encouraging customers to Reducing contacts with Carefully sterilizing waiting leave a space when they customers at the register rooms, handrails, displays stand in line an
Slide 24: COVID-19-Related Support for Franchisees
Response to COVID-19 COVID-19-Related Support for Franchisees Support measures for franchisees (exemption from fees, deferment of payments, loans) Support for franchisees Support for stores Reduction or exemption of expenses for sales promotion Store guidance ・Exempting merchants from paying a Effec
Slide 25: Five-year Rolling Plan 2020
Rolling Plan Five-year Rolling Plan 2020 ■Our mission We constantly create a new car lifestyle culture ～We will get closer to people's living, car and society, and offer more satisfying and value-added services to customers～ ■What we aim to achieve in the Five-Year Rolling Plan We will establish and
Slide 26: Networks, Business Infrastructures, Businesses
Rolling Plan 6 Networks, 5 Business Infrastructures, 7 Businesses 25
Slide 27: Domestic AUTOBACS Business
Rolling Plan ①Domestic AUTOBACS Business ■Status of preparations for a maintenance system adapted to next-generation technologies ✓ A sensor calibration training system completed at a subsidiary, Shaken- Bankin DEPOT Inc. Stores began receiving specified maintenance certification. ✓ A comprehensive
Slide 28: Enhance Relationships with Customers
Rolling Plan ①Domestic AUTOBACS Business ■Improving AUTOBACS application performance to Enhance Relationships with Customers ✓ In the first half of FY March 2021, the number of online bookings for oil change rose about 50% year on year. ✓ The number of downloads exceeded 1.4 million as of September
Slide 29: Overseas Business
Rolling Plan ②Overseas Business ■Switching business from retail to wholesale ✓ Transferred part of its shares of Thai subsidiary SAB to PTG, and excluded from consolidation. ■Adding wholesale customers A) Myanmar (batteries) B) Philippines (batteries) C) Taiwan (batteries) D) Bangladesh (oil etc.) ✓
Slide 30: Internet Business
Rolling Plan ③Internet Business ■Strategic alliance with Car Frontier Co., Ltd., a company affiliated with Mitsubishi Corporation (May 1, 2020) ✓ Established a network leveraging more than 4,700 locations of TIREHOOD nationwide, where tires are installed. ✓ Started sending customers to AUTOBACS stor
Slide 31: Development of Business Infrastructures
Rolling Plan Development of Business Infrastructures １）Human Resources Infrastructure Human resources system, human resources development ・Appoint 3 female managers from this year ・Changing existing training to online training Changing work styles ・Reducing Office working employees to 30% ・Promoting
Slide 32: AUTOBACS SEVEN VISION 2050
Rolling Plan AUTOBACS SEVEN VISON 2050 Creating Our Future Together Professional & Friendly 31
Slide 33: Non-Consolidated and Domestic Store Subsidiaries
Other Documents Non-Consolidated and Domestic Store Subsidiaries Non-Consolidated：decline in revenue and profit Domestic Store Subsidiaries：decline in revenue and profit Non-consolidated Domestic Store Subsidiaries （Million Yen） Results YoY Results YoY Net Sales 69,290 -10,254 26,480 -1,502 Gross 15
Slide 34: Automobile purchase and sales business
Other Documents Automobile purchase and sales business Total 13,330cars YoY -18.6% BtoB Sales Retail Details No. of cars sold Details No. of cars sold To AUTOBACS 418 Used cars 3,771 Seven Sales to AA via AUTOBACS 1,726 New cars 1,489 Seven Direct sales 5,926 from stores BtoB total 8,070 Retail tota
Slide 35: Sales Trend: Retail & Wholesale and Number of customers & Average customer price
Other Documents Sales Trend: Retail & Wholesale and Number of customers ＆ Average customer price YoY monthly retail sales, wholesale sales, number of customers and average customer price Oct Jan Nov Dec Feb Mar Apr May Jun Jul Aug Sep （％） 2019 2020 Whol -16.8 -5.4 -7.5 -12.2 -6.4 -24.6 -18.9 -14.1 -
Slide 36: Store Openings and Closings
Other Documents Store Openings and Closings FY March 2021 Domestic No. of １Q-2Q（Results） 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, 2020 R/L 2020 R/L 2021 AUTOBACS 490 +1 +1/-1 -3 488 +2 +1/-1 +1 490 Super AUTOBACS 74 74 74
Slide 37: Balance Sheet: Assets
Other Documents Balance Sheet: Assets 185.0BY 199.7BY 172.7BY 175.9BY 180.5BY （Billion yen） 27.6 Cash and deposits 25.7 28.7 34.9 Trade notes 28.2 and accounts 37 receivable 28.3 21.9 28.3 24.5 Merchandise 21.6 23.7 Accounts 20.7 20.1 receivable 20.2 25.1 25.8 Other 18.9 14.5 16.3 current assets 8.4
Slide 38: Balance Sheets: Liabilities and Equity
Other Documents Balance Sheets: Liabilities and Equity 185.0BY 199.7BY 172.7BY 175.9BY 180.5BY （Billion yen） Accounts payable - other 32.2 Short-term 21.4 15.3 borrowings 2.7 12.4 13.1 1.1 1.8 6.3 6.4 Accounts 15.4 17.0 12.2 13.9 11.9 payables 8.1 8.0 7.8 8.5 8.4 1.7 1.9 1.0 0.9 Other short-term 2.0
Slide 39: Cash Flows
Other Documents Cash Flows Consolidated statement of cash flows（1Q-2Q） （Million Yen） 8,000 7,086 At September 30,2020 6,000 Cash and cash equivalents: 4,000 34.8 billion yen 2,523 2,000 （At September 30, 2019: 25.6 billion yen） 0 -2,000 -2,778 -4,000 Cash flows Cash flows Cash flows from operating f
Slide 40: 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 2021 Earnings Presentation on 6ix