Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — Q1 FY March 2016 Earnings Presentation
33 slides from Autobacs Seven's earnings presentation, Jul 30, 2015
Slide 1: Results for the Three Months ended June 30, 2015
【Reference】 Translation Results for the Three Months ended June 30, 2015 July 30, 2015 AUTOBACS SEVEN CO., LTD.
Slide 2: Q1 FY March 2016 Consolidated P/L
Q1 FY March 2016 Consolidated P/L Increase in net sales and income: sales and gross margin increased and SG&A expenses were reduced as planned. Sales at stores increased as a result of higher sales of automotive goods, such as tires and wheels, reflecting a rebound from the reduced sales stemming fr
Slide 3: Analysis for Operating Income
Analysis for Operating Income Domestic retail sales Total stores +5.7% / Same store sales +5.0% (YoY) OP YoY Non-consolidated 1,700MY +320MY Sales: -1,240MY（-3.2％） • Inventory downsizing at franchise outlets Gross profit: -30MY（GPM:19.8% - up from LY’s 19.3%） • GPM increase from strong sales of tire
Slide 4: Segment Information
Segment Information (Billion yen) Three months ended Three months ended YoY June 30, 2015 June 30, 2014 change Net Sales 38.07 39.31 -3.2% Non-consolidated Ordinary Income 1.7 1.37 +23.8% Domestic store Net Sales 15.86 14.7 +7.9% subsidiaries － Ordinary Income (0.7) (1.45) Net Sales 2.44 2.54 -3.9%
Slide 5: Performance Breakdown (Three months ended Jun 30, 2015)
Performance Breakdown (Three months ended Jun 30, 2015) Parental company (Non-consolidated) -1.42 BY ↑ Services, tires & wheels, car exteriors, etc. Net Sales: Wholesale -3.8% ↓ Car interiors, car electronics, store fixtures, etc. 38.0 BY YoY: -1.24BY +0.26 BY ↑ On-line stores, car sales, etc. Retai
Slide 6: Retail Sales Including Franchisees
Retail Sales Including Franchisees RETAIL SALES INCLUDING FCs*: 59.9billion yen (+5.7% YoY) (Billion Yen) 70 59.9 56.4 Second hand goods & fuel: 1.0BY (-6.4% YoY） 60 1.0 1.1 4.1 3.6 Statutory safety inspection: 4.1BY (+14.2% YoY) 5.7 50 4.1 Number of cars inspected： 143,000 cars (+18.5% YoY) Number
Slide 7: Sales Trend: Retail & Wholesale (July 2014 – June 2015)
Sales Trend: Retail & Wholesale (July 2014 – June 2015) （％） 【YoY change for the last 12 months】 20.0 Retail sales Return after the tax hike 13.5 Wholesale (Non-consolidated company) related demand drop in 10.0 last year 4.6 0.4 1.4 5.0 0.0 -5.0 -3.9 -5.2 -1.0 -1.5 -7.1 -1.6 -3.9 -8.2 -9.6 -7.5 -10.0
Slide 8: Sales Ups & Downs by Merchandise (Q1)
Sales Ups & Downs by Merchandise (Q1) 【Same Store Basis】 Sales: + 5.0% YoY, Number of customers: - 1.7% YoY Retail sales ups and downs by merchandise category (Million Yen) (for three months ended June 30 2015, YoY change in amount, total store basis) 1,400 1,203 PB tires : +50MY 1,200 Exclusive bra
Slide 9: ASP Trends in Car Navigation Devices
ASP Trends in Car Navigation Devices ASP and Unit Sales Trends of Car Navigation Devices (YoY) 20% 10.8% 10% 4.0% 4.4% 0.7% 2.8% 0% 5.4% 5.3% -5.9% 0.8% -9.4% -3.0% -10.2% -4.4% -10.7% -10.3% -10% -12.5% -11.3% -10.9% -20% -17.1% -20.1% -23.0% -22.5% -30% -25.9% -40% -50% -50.1% -60% Jul-14 Aug-14 S
Slide 10: Automobile purchase and sales (1)
Automobile purchase and sales (1) Commercial flow of car purchase and B2B sales (No. of cars denotes cumulative units for the three months ended June 30, 2015) FC Headquarters Sales by auction Appraisal and purchase consigned to FC Headquarters Used car dealers 494 cars Auto auctions 2,505 cars Cust
Slide 11: Automobile purchase and sales (2)
Automobile purchase and sales (2) Commercial flow of retail sales (No. of cars denotes cumulative units for the three months ended June 30, 2015) New car dealers Used car dealers New car dealers Auto auctions Auto auctions Procurement Procurement FC Headquarters Customers Purchase & Wholesale Invent
Slide 12: Results of Overseas Operation by Country
Results of Overseas Operation by Country FRANCE THAILAND SINGAPORE MALAYSIA Number of stores at June 30, 2015 11 6 3 1 -including FCs stores- Total store sales +2.0% -26.5% -7.8% - -including FC stores- Period Q1 FY2016 Q1 FY2015 Q1 FY2016 Q1 FY2015 Q1 FY2016 Q1 FY2015 Q1 FY2016 Q1 FY2015 Net sales
Slide 13: Decrease in Consolidation Adjustments
Decrease in Consolidation Adjustments Consolidation Adjustments (Million Yen) Three months ended Three months ended June 30, 2015 June 30, 2014 Operating Income for segment total 1,083 (67) Elimination of Intersegment transaction (172) (104) Inventories (Unearned income of subsidiary inventories, et
Slide 14: Progress of New Store Openings
Progress of New Store Openings 4月から6月までの国内新規出店実績 Ownership of Store name Opening data stores 1 AUTOBACS TAKEO Store Subsidiaries April 16, 2015 2 AUTOBACS OGAWARA Store Subsidiaries June 11, 2015 3 AUTOBACS KUREAGA－CHUO Store Subsidiaries June 25, 2015 4 AUTOBACS KYOTO AYABE Store ＦＣ June 25, 2015 5
Slide 15: Enhanced AQ. Lineup
Enhanced AQ. Lineup Car shampoo and coating Steering wheel cover (on sale - April, 2015) (on sale - April, 2015) Car window washer (on sale- April, 2015) Engine oil (on sale - June, 2015) 14
Slide 16: Store Openings and Closings (Plan)
Store Openings and Closings (Plan) < Domestic stores > Fiscal year ending March 31, 2015 (Plan) No. of No. of No. of stores as Q1 (result) stores as Q2 – Q4 (Plan) stores as of March of June 30, of March 31, 2014 New S/B・R/L Close 2014 New S/B・R/L Close 31, 2015 AUTOBACS 478 +2 480 +17 +2 / -2 497 S
Slide 17: Balance Sheet / Assets
Balance Sheet / Assets 187.8BY 186.5BY 218.0BY 186.5BY 183.0BY (Billion Yen) 38.4 Cash and deposits Trade notes 43.9 40.4 42.7 41.1 and account 39.2 receivables Lease investment 21.1 21.5 11.4 18.6 20.1 assets 0 19.5 10.9 Marketable securities 12.2 0.8 0.311.9 0 0 10.9 16.9 17.7 16.7 17.4 Inventorie
Slide 18: Balance Sheet / Liabilities & Net Assets
Balance Sheet / Liabilities & Net Assets 187.8BY 186.5BY 218.0BY 186.5BY 183.0BY (Billion Yen) Trade notes & accounts payable 38.3 ST borrowings and corporate bond 14.2 14.9 3.6 12.8 4.7 2.9 13.8 Other ST liabilities 5.6 23.7 3.5 17.2 16.8 18.7 17.4 Bonds and LT debts 2.1 1.0 2.2 2.1 2.7 11.4 11.3 1
Slide 19: 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 estimates made in accordance with information currently available. Actual results may differ materially from forecasts due to suc
Slide 20: Revision of "2014 Medium-term Business Plan"
【Reference】 Translation AUTOBACS SEVEN CO., LTD. Revision of “2014 Medium-term Business Plan” July 30, 2015
Slide 21: Revised 2014 Medium-Term Business Plan
Revised 2014 Medium-Term Business Plan Improving Profitability of AUTOBACS Business and Creating New Business for Growth Basic 1. Transforming the AUTOBACS Business into a Policy business that responds to change 2. Building a new pillar to generate revenue 3. Adopting organizational reforms to creat
Slide 22: Outline of Business Strategy
Outline of Business Strategy Status Policy Focus as the Group’s 〔Basic policy〕 top priority business “Creating Higher Value for Customers and Domestic Transform into a Establishing Competitive Advantage” AUTOBACS more highly Business profitable business Building a continuous relationship with custom
Slide 23: Breakdown of OP Target by Business Categories
Breakdown of OP Target by Business Categories* (Billion Yen) 20 15.5 （Consolidated Domestic New Overseas OP 15.0BY） AUTOBACS Business Business 15 Business 0.6 0.5 0.5 Administration 7.2 6.7 10 （Consolidated OP 6.4BY） 【Breakdown of Domestic AUTOBACS Business】 5 AUTOBACS Business Headquarters: +3.6BY
Slide 24: Breakdown of OP Target by Segment
Breakdown of OP Target by Segment* (Billion Yen) Subsidiaries 20 for Car Goods Supply and 15.5 Domestic Overseas Other （Consolidated Store Subsidiaries OP 15.0BY） 0 Subsidiaries 15 0.7 0.7 Non- Subsidiaries consolidated 2.9 for Supporting 7.2 Functions 10 （Consolidated 4 OP 6.4BY） 5 0 FY March FY Ma
Slide 25: AUTOBACS Business Policy and Targets
AUTOBACS Business Policy and Targets Creating Higher Value for Customers and Business Establishing Competitive Advantage Policy “Building Continuous Relationship with Customers, and Providing Convenience and Trust by Strengthening Ties with Them” Numerical Targets of the Domestic AUTOBACS Business ・
Slide 26: Policy of Domestic AUTOBACS Business
Policy of Domestic AUTOBACS Business Competitive advantage of AUTOBACS “Customers can use our services comfortably without stress” ～customers feel they are served “with great understandings,” “with trust,” “with shorter waiting times,” “at all times,” and “with suitable substitutes”～ Building contin
Slide 27: Initiatives of Domestic AUTOBACS Business
Initiatives of Domestic AUTOBACS Business Items Initiatives Maintenance ・Reviewing membership benefits, strengthen activities to membership holders attract more members, etc. ・Increasing maintenance members to three million from two million at the end of March 2015 Oil change services ・Shortening wa
Slide 28: Domestic Store Opening Plan
Domestic Store Opening Plan New Domestic Store Openings: 48 stores in four years (previous plan, 100 stores) Considering the possibility of opening new stores, and reviewing the construction costs involved in adjusting plans for new store openings (stores) New Domestic Store Openings 650 Total 619 s
Slide 29: Initiatives to Improve the Cost Structure
Initiatives to Improve the Cost Structure Implementing strategic cost reduction to transform into a more profitable business structure 1. Reduction in procurement and distribution costs ・ Reducing distribution costs by cooperating with suppliers ・ Reducing cost of goods purchased 2. Reduction in pur
Slide 30: Improving Revenues of Domestic Store Subs.
Improving Revenues of Domestic Store Subs. 1. Increase in Sales Expanding sales of automotive goods, statutory inspections, and automobile purchase and sales in line with the business strategy 2. Improvement of gross margin +3.2BY ① Ensuring sales price management ② Reviewing terms for rebates and e
Slide 31: Breakdown of OP Target of AUTOBACS Business
Breakdown of OP Target of AUTOBACS Business Breakdown of 6.7 billion yen (profit improvement amount for the domestic AUTOBACS business) (billion yen) AUTOBACS Subsidiaries for Car Domestic Store Business Goods Supply and Subsidiaries Headquarters Other Automotive goods and +3.1 +1.9 services Statuto
Slide 32: Financial Strategies and Return to Shareholders
Financial Strategies and Return to Shareholders 1. Financial Strategies: measures to achieve ROE8% ① Making investments for business strategies (approximately 44 billion yen in four years) ② Improving asset turnover by reducing assets ③ Improving capital efficiency after establishing financial stabi
Slide 33: 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 estimates made in accordance with information currently available. Actual results may differ materially from forecasts due to suc
Autobacs Seven — Q1 FY March 2016 Earnings Presentation on 6ix