Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — FY March 2017 Earnings Presentation
40 slides from Autobacs Seven's earnings presentation, May 10, 2017
Slide 1: FY March 2017 Analyst Meeting
FY March 2017 Analyst Meeting AUTOBACS SEVEN CO., LTD. May 10, 2017
Slide 2: Ⅰ. Consolidated Results of FY March 2017
Ⅰ. Consolidated Results of FY March 2017
Slide 3: Consolidated P/L (FY March 2017)
Consolidated P/L (FY March 2017) Decrease in net sales and income: Net sales and gross profit declined, while SG&A expenses remained within the plan Sales of products such as accessories and car electronics fell despite recovery in sales of tires, oil, batteries and other consumables. Operating inco
Slide 4: Consolidated Sales by Merchandize
Consolidated Sales by Merchandize (Billion Yen) Consolidated Sales by Merchandize 250 208.1 204.0 200 14.9 14.4 14.8 15.9 7.2 7.4 Others 150 Car Purchase & Sales 100 171.1 166.2 Statutory Inspection Sevices 50 Car Parts & Accessories 0 FY2016 FY2017 Amounts are rounded down. 4
Slide 5: FY March 2017 Review of Business Environment
FY March 2017 Review of Business Environment Same store sales and number of customers at domestic AUTOBACS-chain stores including FCs (YoY) Sales Number of customers 8% 6% 5.4% 3.7% 4% 2.5% 2.3% 2% 1.4% 0.6% 0% 0.2% -1.2% -2.5% -2% -2.9% -4% -4.4% -2.9% -2.6% -5.5% -5.5% -3.7% -6% -7.4% -5.3% -7.0%
Slide 6: FY March 2017 Consolidated P/L - Factors for YoY Change
FY March 2017 Consolidated P/L - Factors for YoY Change FY March 2017 FY Mar 2016 Result YoY % of Sales Major drivers of variance % of Sales change Net sales 204.0 BY -2.0% Non-consolidated-5.23 BY 208.1 BY Before Domestic store subsidiaries -2.1 BY consolidation Overseas subsidiaries -1.23 BY adjus
Slide 7: Analysis of Operating Income by Segment
Analysis of Operating Income by Segment Domestic Retail sales Total store basis: -0.2% Same store basis: -1.1% Operating Major drivers of variance (yoy) Income 5.16 BY -1.91 BY Net sales -5.23 BY (-3.3%) Gross profit: -1.25 BY ((Gross profit margin: 20.5% (last year Non-consolidated 20.6%)) ・Decreas
Slide 8: Segment Information
Segment Information (Million Yen) FY March FY March YoY Latest % to 2017 results 2016 results Change Forecasts Forecasts Net sales 153,054 158,288 -3.3% 154,500 -0.9％ Non- consolidated Operating income 5,164 7,074 -27.0% 5,000 +3.3％ Net sales 66,444 68,550 -3.1% 69,900 -4.9% Domestic store subsidiar
Slide 9: Retail Sales in Total AUTOBACS Group Stores
Retail Sales in Total AUTOBACS Group Stores Retail sales including FCs*: 262.0 billion Yen (-0.2% YoY) (Billion Yen) 262.4 262.0 300 Second hand goods & Fuel: 4.6BY (+6.0% YoY） 4.2 4.6 250 17.3 18.3 26.6 Statutory safety inspection: 18.3BY (+6.0% YoY) 29.2 Number of cars inspected： 646,000cars (+6.8
Slide 10: Initiatives in Domestic Retail Sales Business
Initiatives in Domestic Retail Sales Business Measures Implemented Automotive goods ・Expansion of line-up of private brand "AQ." and services ・Sales expansion of car video cameras （Amount (YoY) +25.4%） ・Marketing of safety products such as “Pedal Watcher” ・Optimum pricing and change price indication
Slide 11: Sales Ups & Downs by Merchandise (FY March 2017)
Sales Ups & Downs by Merchandise (FY March 2017) 【Same store basis】 Sales: -1.1% YoY, Number of customers: -4.3% YoY (Million Yen） Retail sales ups and downs by merchandise category (FY March 2017, YoY change in amount, total store basis) 1,000 637 Refreshment service : +200 MY Engine Flushing：+200
Slide 12: E-commerce: Sales via internet site
E-commerce Sales via internet site （FY March 2017） 1.96billion Yen (YoY -34.6%) Sales via internet site (Million Yen) [ Sales by distribution channel ] 3,500 Delivered at stores（Store sales) ：1.08 billion Yen（YoY -30.7%） 3,010 3,000 Direct delivery to customers ：0.88 billion Yen（YoY -38.9%） 2,500 1,
Slide 13: Oil Change / Statutory Safety Inspections appointments
Oil Change / Statutory Safety Inspections: Initiatives implemented for appointments made via website/telephone Results of Oil change appointments (FY March 2017） (Number) Approximately 388,000 (YoY +66%) Oil change 500,000 Percentage of oil sales volume: 8.4% 387,659 400,000 300,000 232,566 200,000
Slide 14: Development of New Format in Domestic Retail Sales Business
Development of New Format in Domestic Retail Sales Business Stores combining gasoline stand with secondary functions such as automotive goods and services and statutory inspections AUTOBACS TATEBAYASHI SUWA-CHO Store (Opened Nov. 3, 2016) AUTOBACS Stores pursuing greater customer convenience TATEBAY
Slide 15: Domestic Store Subsidiaries: Development of Management Structure
Domestic Store Subsidiaries: Development of Management Structure Domestic Store Subsidiaries: Results of Restructuring ・Transferred shares of store subsidiaries Transferred all shares of store subsidiaries in Hokkaido area to franchisee (Feb. 1, 2017) ⇒Transferred 17 stores in total Transferred all
Slide 16: Establishment of new companies
Initiatives in Domestic Retail Sales Business Establishment of new companies Company Name: Chain Growth Co., Ltd. Established: Feb. 24, 2017 (Trade name change from Support-A Co., Ltd) Purpose: Training of maintenance engineers for retail sales business and dispatch to stores; consulting services fo
Slide 17: Store Openings and Closings (FY March 2017)
Store Openings and Closings (FY March 2017) No. of FY March 2017 No. of stores stores 1st Half 2nd Half Domestic at at March March stores 31, New S/B・ Close New S/B・ Close 31, R/L R/L 2016 2017 AUTOBACS 498 +2 +1/-1 -7 +7 +1 -6 495 Super AUTOBACS 75 -1 74 AUTOBACS Secohan Ichiba 9 9 AUTOBACS EXPRESS
Slide 18: Performance by Overseas Subsidiaries
Performance by Overseas Subsidiaries Performance of Consolidated Subsidiaries France Thailand Singapore China Malaysia Number of stores at Mar. 31, 2017-including 11 8 2 0 4 FC stores- FY FY FY FY FY FY FY FY FY FY Period March March March March March March March March March March 2017 2016 2017 201
Slide 19: Initiatives in Overseas Business
Initiatives in Overseas Business New Store Openings in ASEAN AUTOBACS CHARAN Store AUTOBACS TSM Bandung Store AUTOBACS Supermall Karawaci Store in Thailand in Indonesia in Indonesia （Opened May 27, 2016） （Opened Dec. 9, 2016) （Opened Feb. 10, 2017) AUTOBACS LAT PHRAO 101 Store Bintaro Jaya Xchange M
Slide 20: Initiatives in New Business
Initiatives in New Business New imported car dealer made into a subsidiary and commenced operations. Motoren Tochigi Corp. ・Operates five sites including BMW dealers in Tochigi Prefecture ・Sells new BMW cars, and sells services and BMW approved used cars Utsunomiya main dealership Oyama dealership/B
Slide 21: Ⅱ. Forecasts for FY March 2018
Ⅱ. Forecasts for FY March 2018
Slide 22: Expectations for the Business Environment In FY March 2018
Expectations for the Business Environment In FY March 2018 Business Environment ・Demand for passenger cars (standard, small + mini/light vehicles) is expected to fall 0.8% year on year（Japan Automobile Manufacturers Association） ・The number of vehicles subject to statutory safety inspections will co
Slide 23: Financial Forecasts (FY March 2018)
Financial Forecasts (FY March 2018) (Billion Yen) FY March 2017 FY March 2018 (Forecast) Result 1st-half 2nd-half Full year YoY change (% to Net sales) (% to Net sales) (% to Net sales) (% to Net sales) (amount & rate) Net sales 2,040 954 1,096 2,050 +0.5% Gross profit 661 313 354 667 +0.8% 32.4% 32
Slide 24: Forecast at Parent & Subsidiary Level (FY March 2018)
Forecast at Parent & Subsidiary Level (FY March 2018) (Million Yen) FY March 2018(Forecasts) FY March 2017 results YoY change 1st-half 2nd-half Full Year (amount) Net sales 153,054 70,900 83,000 153,900 +0.6％ Non- consolidated Operating income 5,164 1,000 4,700 5,700 +10.4％ Domestic store Net sales
Slide 25: Capital Expenditures & Depreciation
Capital Expenditures & Depreciation Capital Expenditures Depreciation (Billion Yen) (Billion Yen) 7.0 7.0 6.12 5.89 6.0 6.0 Full year estimate 5.0 4.81 4.84 5.0 4.42 4.57 4.50 4.16 Full year 3.84 4.0 estimate 4.0 3.15 3.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 FY March FY March FY March FY March FY March FY Ma
Slide 26: Shareholders Return
Shareholders Return Dividends per share Dividends and share buyback (Yen) (Billion Yen) Amount of share buyback 80 1st Half 2nd Half 12 Dividend paid 70 10 60 8 5.25 50 Share 30 30 30 2.71 buyback is 40 6 uncertain. 30 4 20 30 30 30 2 5.04 4.95 5.00 10 0 0 FY March 2016 FY March 2017 FY March 2018 F
Slide 27: APPENDIX
APPENDIX
Slide 28: Monthly Trends In Retail Sales and Wholesale Sales
Monthly Trends In Retail Sales and Wholesale Sales YoY Changes in Retail Sales and Wholesale Sales 15.0% Increase in store deliveries of Sales tires in reaction to last year Wholesale 10.0% Expansion in demand for 8.4% winter products after mild winter the previous year 5.4% 5.0% 2.3% 1.4% 2.5% 3.7%
Slide 29: Expanding Product Category of PB AQ. (AUTOBACS Quality)
Expanding Product Category of PB AQ. (AUTOBACS Quality) AQ. AUTOBACS QUALITY Fake leather cushion Smoked sun visor does not hinder visibility （Launched in April 2016） （Launched in August 2016） Armrest cushion （Launched in February 2017） Interior mat of three dimensional shape Waterproof seat cover M
Slide 30: Results of Statutory Safety Inspection and Car Purchase & Sales Business
Results of Statutory Safety Inspection and Car Purchase & Sales Business Statutory safety inspection Car purchase and sales (total stores) (total stores) (Thousands cars) (Thousands cars) 40 700 666 646 35 650 33.0 604 29.8 600 589 30 27.1 580 23.9 25 23.1 550 500 20 450 15 400 10 350 5 300 0 FY Mar
Slide 31: 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 nine months ended Dec. 31, 2017) FC Headquarters Appraisal and purchase Sales by auction consigned to FC Used car dealers Headquarters Auto auctions 2,426 cars Customers 15,7
Slide 32: Automobile purchase and sales (2)
Automobile purchase and sales (2) Commercial flow of retail sales (No. of cars denotes cumulative units for FY ended Mar 31, 2017) New car dealers New car dealers Auto auctions Used car dealers Auto auctions Procurement Procurement FC Headquarters Customers Purchase & Wholesale Inventories Vehicles
Slide 33: Analysis of Income statements (FY Mar 31, 2017)
Analysis of Income statements (FY Mar 31, 2017) Non-consolidated -5.27 BY ↑：Fuel, car sales , inspection services, etc. Net Sales Wholesale (-3.5%) ↓：Accessories, car electronics , etc. 153.0BY +0.24 BY ↑：Car sales, fuel, accessories, etc. YoY: -5.23 BY Retail (+4.1%) ↓ : E-commerce, statutory inspe
Slide 34: Progress of New Store Openings (FY March 2017)
Progress of New Store Openings (FY March 2017) Location Owner of Store name Opening date (Prefecture) store 1 AUTOBACS OSAWANO Store Toyama FC April 23, 2016 2 AUTOBACS Used Car Purchase Store MATSUBARA Tokyo RC May 26, 2016 3 AUTOBACS SATOSHO Store Okayama FC June 24, 2016 4 AUTOBACS Used Car Purch
Slide 35: Quarterly P/L (FY March 2017)
Quarterly P/L (FY March 2017) (Billion Yen) FY March 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2017 Net sales 47.5 47.2 65.8 43.3 204.0 YoY -3.1% -4.7% -0.5% +0.2% -2.0% Gross profit 14.8 15.7 20.7 14.7 66.1 （% of Sales） (31.2%) (33.4%) (31.5%) (34.0%) (32.4%) YoY -5.4% -3.7% +0.2% +4.4% -1.2%
Slide 36: Consolidation Adjustments
Consolidation Adjustments Consolidation Adjustments (Million Yen) FY Mar 31, 2017 FY Mar 31, 2016 Operating Income for segment total 5,707 6,549 Elimination of Intersegment transaction (Income of subsidiaries for supporting functions, etc.) -489 -480 Inventories (Unearned income of subsidiary invent
Slide 37: Balance Sheet: Assets
Balance Sheet: Assets Total Assets Total Assets 180.4 BY 176.7 BY Cash and (Billion Yen) deposits Major items changed 37.0 31.5 Trade notes and accounts receivable Dividends:-5.0BY 19.6 20.0 Lease 9.7 investment 9.1 assets 17.2 Accounts 15.3 dues 24.2 Other 26.1 ・Loss on impairment of fixed current
Slide 38: Balance Sheets: Liabilities and Equity
Balance Sheets: Liabilities and Equity Total Liabilities & Equity 180.4 BY 176.7 BY Accounts (Billion Yen) payables 13.8 Short-term 12.8 Major items changed 2.4 borrowings 5.9 19.2 Other short-term 2.3 liabilities 18.4 10.8 0.6 Long-tem borrowings 11.3 Other long-term liabilities Retained earnings:
Slide 39: Performance Results of Franchisees
Performance Results of Franchisees Ordinary Income of Franchise Companies (Preliminary) (Billion Yen) 4.0 3.81 2.0 1.78 1.63 0.0 -0.30 Total of profit-making FCs -2.0 Total of profit-making subsidiaries Total of loss-making FCs -2.50 Total of loss-making subsidiaries Orginary income(net) -4.0 FY Mar
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