Nextage Co., Ltd. · TSE:3186
Nextage — Q3 FY2023 Earnings Presentation
35 slides from Nextage's earnings presentation, Oct 2, 2023
Slide 1: Fiscal 2023 3rd Quarter Financial Results Presentation
Financial Results Presentation Fiscal 2023 3rd Ｑｕａｒｔｅｒ Financial Results Presentation October 2, 2023 NEXTAGE Co., Ltd. (3186)
Slide 2: Contents
Contents １．Results Overview ２．Systems in Nextage ３．Reference Information 2
Slide 3: Fiscal 2023 Business Performance (Q3)
Fiscal 2023 Business Performance (Q3) （Millions of yen） Percent FY2023 Q3 Comparison FY2022 FY2022 FY2023 FY2023 FY2023 of net YoY cumulative sales with plan ３Ｑ ４Ｑ １Ｑ ２Ｑ ３Ｑ Net Sales 349,223 100.0％ 120.7％ 75.9％ 106,997 128,786 117,937 111,890 119,396 Gross Profit 66,654 19.1％ 123.8％ － 20,339 20,208
Slide 4: Market Environment (the Number of Car Registrations)
Market Environment (the Number of Car Registrations) ■ Used car registrations （December 2022 to August 2023） Results Results Comparison Results Comparison Number of units in FY2023 in FY2022 with FY2022 in FY2021 with FY2021 Ordinary passenger cars 1,893,974 1,906,016 99.4% 2,045,586 92.6% Kei (ligh
Slide 5: Monthly Retail Sales Volume in Fiscal 2023
Monthly Retail Sales Volume in Fiscal 2023 ■ Monthly retail car sales volume and YoY comparison (Number of units) 15,458 14,511 14,901 14,536 15,000 13,792 13,410 11,803 11,551 13,000 11,000 9,206 9,000 8,460 8,989 8,134 8,598 8,110 7,000 8,309 7,629 7,664 7,789 7,174 7,242 5,000 5,160 FY2023 FY2022
Slide 6: Changes in Key KPI Status
Changes in Key KPI Status Retail car sales Vehicle purchases （Number of units） 119,168 （Number of units） 148,763 120,000 150,000 87,829 107,496 80,000 100,000 YoY YoY 40,000 135.7％ 50,000 138.4％ 0 0 Fiscal 2022 Q3 Fiscal 2023 Q3 Fiscal 2022 Q3 Fiscal 2023 Q3 cumulative cumulative cumulative cumulati
Slide 7: Financial Results of Each Business Unit
Financial Results of Each Business Unit ■ : Net sales ■ Changes in net sales and gross profit of each business unit ■ : Gross profit （Millions of yen） Purchasing stores Used vehicle dealerships Net sales 93,843 Net sales 0000 208,230 50000 YoY 81,025 YoY 170,920 0000 121.8％ 80000 115.8％ 25000 Gross
Slide 8: Gross Profit Margin and SG&A Expenses Ratio Analysis
Gross Profit Margin and SG&A Expenses Ratio Analysis ■ Changes in gross profit margin and selling, general and administrative expenses ratio (consolidated) Gross profit margin Medium-Term Selling, general and administrative expenses ratio Management Plan 22.0% 21.4% 20.9% 19.6% 20.0% 19.5% Operating
Slide 9: Analysis of Gross Profit Margin
Analysis of Gross Profit Margin ■ Changes in average retail sales price ■ Changes in average AA sales price and （excluding new vehicle dealerships） and profit per vehicle of AA unit profit per vehicle in used vehicle dealerships （excluding new vehicle dealerships） Sales Price Sales Price Profit per
Slide 10: Product Management Status
Product Management Status ■ Changes in inventory turnover days ■ Supplier composition of retail sales （Unit : day） （excluding new vehicle dealerships） （excluding new vehicle dealerships） 47.9 100% 45.1 43.5 41.5 41.8 41.7 41.0 40.5 39.7 35.0 50.6 47.3 55.6 38.9 38.6 61.3 50% 45.5 37.4 39.6 32.0 28.4
Slide 11: Product Price Status
Product Price Status ■ Composition of products by unit sales price ■ Changes in merchandise balance analysis （excluding new vehicle dealerships） （Millions of yen） 100% 33.1 26.6 30.9 35.0 41.2 50% 72,563 41.5 56,959 28.1 32.3 36.7 25.3 0% FY2021 FY2022 FY2023 FY2023 FY2023 Q4 Q4 Q1 Q2 Q3 within 1 mi
Slide 12: Profit per Unit at Used Vehicle Dealerships by Components
Profit per Unit at Used Vehicle Dealerships by Components ■ Changes in profit per unit at used vehicle dealerships by components ① Vehicle body ② Accessories ③Financial products （％） （％） （％） 400 160 160 140 140 300 120 120 100 100 200 80 80 60 60 100 40 40 20 20 0 0 0 FY2019 FY2020 FY2021 FY2022 FY20
Slide 13: Profit per Unit at Used Vehicle Dealerships by Components
Profit per Unit at Used Vehicle Dealerships by Components ■ Changes in profit per unit at used vehicle dealerships by components ④ AA sales of trade-in and ⑤ Disposal of backlogs and purchased vehicles inventory replacement （％） （％） 0 140 120 -100 100 -200 80 60 -300 40 -400 20 Loss averted 0 -500 FY
Slide 14: Operating Income Analysis
Operating Income Analysis (Millions of yen) YoY＋32.1％ The number of stores at the end of Q3 +63 storefronts YoY ＋42.1％ YoY ＋43.0％ YoY＋31.7％ Approx. 1,000 New graduates 14,756 In Apr. 2023 The number of purchased vehicles 14,439 YoY＋38.4％ The number of retail sales YoY＋35.7％ 14
Slide 15: Revision of consolidated Full-year Fiscal Forecast
Revision of consolidated Full-year Fiscal Forecast （Millions of yen） FY2023 Q3 FY2023 FY2023 Amount of Deviation forecast forecast increase/ cumulative 【Before revision】 【After revision】 decrease ratio Net Sales 349,223 500,000 460,000 △40,000 △8.0％ Operating 14,439 25,000 18,000 △7,000 △28.0％ Profi
Slide 16: Change in the Number of Locations
Change in the Number of Locations ■ Change in the number of locations Standalone vehicle purchasing stores （Unit locations） 160 New vehicle dealerships Used car dealerships 144 140 122 115 120 105 109 100 100 80 76 63 60 46 49 39 43 38 40 27 23 24 21 21 21 22 22 20 0 FY2021 FY2022 FY2023 Q1 FY2023 Q
Slide 17: Fiscal 2023 Store Opening Plan
Fiscal 2023 Store Opening Plan Difference Fiscal 2023 store The beginning End of fiscal Change in opening plan of fiscal 2023 Q1 Q2 Q3 Q4 2023 fiscal 2023 from initial plan Medium-sized 22 New store 2 24 +2 - dealerships openings (Japanese cars) storefronts storefronts storefronts storefronts storef
Slide 18: Impact of Changes in the Used Car Market in Japan
Impact of Changes in the Used Car Market in Japan price Phase 1: Market price rising Phase 2: Market price remains high Positive factor Gross profit is likely to increase Negative factor due to increase in product values Decrease in used car registrations (The greater impacts at small and medium-siz
Slide 19: Market Environment (Change in Market Price of AA in Japan)
Market Environment （Change in Market Price of AA in Japan） ■ Changes in average AA sales price and （Thousands of yen） contract completion rate of AA 1,200 70% 1,000 65% 800 60% 600 55% 400 50% 200 45% 0 40% Dec. 2022 Jan. 2023 Feb. 2023 Mar. 2023 Apr. 2023 May 2023 Jun. 2023 Jul. 2023 Aug. 2023 Aver
Slide 20: Changes in the Number of Used Car Registrations
Changes in the Number of Used Car Registrations ■ Monthly changes in the number of used car registrations （Number of units） 800,000 105% 600,000 100% 400,000 95% 200,000 90% 0 85% Dec. 2022 Jan. 2023 Feb. 2023 Mar. 2023 Apr. 2023 May 2023 Jun. 2023 Jul. 2023 Aug. 2023 FY2022 FY2023 YoY Source: Stati
Slide 21: Contents
Contents １．Results overview ２．Systems in Nextage ３．Reference Information 21
Slide 22: Structure of Reflecting Feedbacks from All Stakeholders
Structure of Reflecting Feedbacks from All Stakeholders Comments and feedbacks Measures / Nextage from stakeholders Improvements Customers Employees Take actions to feedbacks from all stakeholders. Business We reflect the partners feedbacks in our management to improve Share- our sales activities an
Slide 23: Actions to Comments and Complaints from Customers
Actions to Comments and Complaints from Customers Comments from Sharing Details customers departments ・Categorized into comments and complaints ・Enquiries to the and sharing to the department in charge ・Store managers ⇒Timely sharing on a daily basis customer center ・Customer center ・Enquire form vi
Slide 24: Various Consultation and Reporting Systems from Employees
Various Consultation and Reporting Systems from Employees Consultation or reporting systems Targets Concepts and features ・ Monthly surveys to all employees MinKATA* Any kinds of ⇒Collect comments from all employees consultations Internal consultation system through works ・ Accepting all kinds of co
Slide 25: Improvement Activities through Executive Inspections
Improvement Activities through Executive Inspections Contents Details Number of times and timing of Twice a year for each store (throughout the year at all stores) implementation ・ Product vehicle check (quality and lineup) Implementation ・ Confirmation of sales flow from the customers’ perspective
Slide 26: Declaration of Nextage Policies
Declaration of Nextage Policies ■ Flows of each Nextage policy declarations Sales Insurance Maintenance Purchase Greetings from the Showing the Reception and Staff’s greeting person in charge certification of non-life and staff insurance solicitor staff’s greeting Declaration of policy Declaration D
Slide 27: Nextage Policy
Nextage Policy 「Nextage Policy」 「Nextage Policy」 on Car suggestion & sales as a Designated insurance agent We have various cars as our inventory for all Everything is for the safe and kind of customers’ car lives satisfactory car lives for customers. We let customers to take time looking the invento
Slide 28: Nextage Policy
Nextage Policy 「Nextage Affectionate 「Nextage Policy」 Inspection Policy」 on Purchasing cars on Maintenance We offer "Affectionate Assessment Service" in accordance with the policy of Japan Purchase These inappropriate or improper Used Car Association. maintenances are surprisingly common thereby the
Slide 29: Contents
Contents １．Result overview ２．Systems in Nextage ３．Reference Information 29
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet ■ Consolidated balance sheet （situations of assets and liabilities） As of the end of fiscal 2023 Q3 (Millions of yen) As of the end of fiscal 2022 (Millions of yen) Current Current assets Current liabilities Current assets 流動負債 101,259 44,844 liabilities 111,157 52,723 (Ca
Slide 31: Comparison in Existing-Stores
Comparison in Existing-Stores 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 FY2018 31,318 38,387 37,098 38,944 FY2018 1,332 1,746 1,597 1,864 Fiscal 2019 FY2019 34
Slide 32: Comparison in New Stores
Comparison in New Stores New store openings (¥ million, %) New store openings (¥ million, %) Net sales Q1 Q2 Q3 Q4 Operating income Q1 Q2 Q3 Q4 Quarter 12,594 12,027 12,914 18,649 Quarter 278 274 157 217 Fiscal 2019 Cumulative 12,594 24,621 37,535 56,184 Fiscal 2019 Cumulative 278 552 709 926 YoY 20
Slide 33: Details of Net Sales
Details of Net Sales Car sales-related (¥ million, %) Maintenance-related (¥ million, %) Net sales Q1 Q2 Q3 Q4 total Net sales Q1 Q2 Q3 Q4 total (1) Fiscal 2018 28,842 33,691 31,975 34,009 128,517 (1) Fiscal 2018 845 985 1,057 1,238 4,125 (2) Fiscal 2019 39,227 44,344 44,182 43,577 171,330 (2) Fisca
Slide 34: Changes in Quarterly Results
Changes in Quarterly Results （Unit： Million yen） Consolidated Q1 Q2 Q3 Q4 Full year statements of income Fiscal 2021 Fiscal 2022 YoY Fiscal 2021 Fiscal 2022 YoY Fiscal 2021 Fiscal 2022 YoY Fiscal 2021 Fiscal 2022 YoY Fiscal 2021 Fiscal 2022 YoY Net sales 63,129 81,507 29.1% 76,101 100,825 32.5% 72,8
Slide 35: 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 age