Slide 1: Fiscal 2019 2nd Quarter Financial Results Presentation
Financial Results Presentation Fiscal 2019 2nd Quarter Financial Results Presentation July 8, 2019 NEXTAGE Co., Ltd. (3186) 1
Slide 2: Contents
Contents 1. Results Overview 2. Fiscal 2019 Initiatives 3. Reference Information 2
Slide 3: Fiscal 2019 Results (Q2)
Fiscal 2019 Results (Q2) Performance highlights (December 2018 to May 2019) (YoY: +38.6%) Consolidated net sales ¥104,821 million (Achievement of full fiscal year target: 48.8%) (YoY: +62.9%) Consolidated operating income ¥3,285 million (Achievement of full fiscal year target: 57.6%) (YoY: +71.2%) C
Slide 4: Overview of the Fiscal 2019 Results (Q2)
Overview of the Fiscal 2019 Results (Q2) Key Points of Financial Results ▪ Net sales: Up 38.6% YoY with the full contribution of quasi-existing dealerships opened last year ▪ Gross profit margin: 17.2% (up 1.0 ppt. YoY) due to the expansion of maintenance and purchasing businesses and improved earni
Slide 5: Consolidated Operating Results Forecasts for Fiscal 2019
Consolidated Operating Results Forecasts for Fiscal 2019 Progress Fiscal 2019 Percent of (Q2 Results) of full- Full-year plan YoY net sales (Millions of yen) year plan Net sales 104,821 48.8% 215,000 131.8% 100.0% Operating income 3,285 57.6% 5,700 130.0% 2.7% Ordinary income 3,194 58.1% 5,500 131.4
Slide 6: Market Environment in Fiscal 2019
Market Environment in Fiscal 2019 ■ Domestic used car registrations Japan Automobile Dealers Association 450,000 Japan Light Motor Vehicle and Motorcycle (Ordinary passenger cars) Association 400,000 (Kei (light) cars) 450,000 350,000 400,000 300,000 350,000 300,000 250,000 250,000 200,000 200,000 F
Slide 7: Sales in Fiscal 2019
Sales in Fiscal 2019 9,000 ■ Monthly retail car sales volume and YoY comparison 8,000 7,162 7,618 6,660 7,000 5,936 5,549 6,000 5,000 4,037 5,654 5,291 5,357 5,117 5,378 5,306 4,495 4,586 4,602 4,557 4,000 4,269 3,000 3,133 Car sales volume increased by 30.9% year on year in the stagnant market. 2,0
Slide 8: The Three Arrows (Sales, Purchasing, and Maintenance), plus Net Premiums Written
The Three Arrows (Sales, Purchasing, and Maintenance), plus Net Premiums Written Retail car sales (December 2018 to May 2019) ◎ 36,962 vehicles (YoY: +30.9%) Vehicle purchases (December 2018 to May 2019) ◎ 16,983 vehicles (YoY: +55.4%) Vehicle safety inspections (December 2018 to May 2019) ◎ 20,848
Slide 9: Fiscal 2019 Store Opening Plan
Fiscal 2019 Store Opening Plan Beginning End of Fiscal of Fiscal Q1 Q2 Q3 Q4 2019 Change in (Results) (Results) (Plan) (Plan) Fiscal 2019 2019 (Plan) Medium-sized Integrations 18 −2 1 17 −1 dealerships Format (Japanese cars) storefronts changes storefronts storefront storefronts storefront 16 New st
Slide 10: NEXTAGE Natori Grand opening!
New Openings (General Store) Saturday, April 27, 2019 NEXTAGE Natori Grand opening! One of the largest Inside store 地域最大級！ stores in the area Large-space maintenance workshop 10
Slide 11: New Vehicle Dealership Business
New Vehicle Dealership Business Saturday, May 11, 2019 Jaguar Land Rover Hamamatsu Grand opening! Appearance of the brand-new store Showroom Maintenance workshop 11
Slide 12: Consolidated Balance Sheets – Assets
Consolidated Balance Sheets – Assets (Millions of yen) As of As of Item Nov. 30, 2018 May 31, 2019 Change Remarks Fiscal 2018 (Q4) Fiscal 2019 (Q2) Current assets 47,435 54,209 +6,774 Cash and deposits 16,523 21,041 +4,517 Increased inventories due to new Merchandise 23,347 24,502 +1,155 store openi
Slide 13: Consolidated Balance Sheets – Liabilities and Net Assets
Consolidated Balance Sheets – Liabilities and Net Assets (Millions of yen) As of As of Item Nov. 30, 2018 May 31, 2019 Change Remarks Fiscal 2018 (Q4) Fiscal 2019 (Q2) Current liabilities 20,744 22,808 +2,063 Accounts payable – trade 4,603 4,429 −173 Short-term loans payable 8,138 9,483 +1,345 Used
Slide 14: Growth of Existing Dealerships
Growth of Existing Dealerships Net sales of existing dealerships Operating income of existing dealerships YoY comparison (Millions of yen) YoY comparison (Millions of yen) 140,000 7,000 128,642 Previous year Current year 113.8% Previous year Current year 6,231 115.9% 130.9% 120,000 6,000 110,987 116
Slide 15: Contents
Contents 1. Results Overview 2. Fiscal 2019 Initiatives 3. Reference Information 15
Slide 16: Policy for Initiatives for Fiscal 2019
Policy for Initiatives for Fiscal 2019 Improving and strengthening our businesses (1) (2) (3) Expand large- Strengthen new Enhance sized vehicle education and dealerships dealerships governance Promote lifelong customer [Plan] structure relationships / transactions within a ・ Increase sales of new/c
Slide 17: Our Store Formats: General Store
Our Store Formats General Store “No. 1 store in the region” providing one-stop services 17
Slide 18: Our Store Formats: SUV LAND
Our Store Formats SUV LAND Large-scale specialist SUV store offering an experience of the joys of life with an SUV 18
Slide 19: Our Store Formats: UNIVERSE
Our Store Formats UNIVERSE “Cars from around the world” - Large-scale store dedicated to imported cars 19
Slide 20: Business Model
Business Model Years until switching to a new car In 1993 5.5 years on average Longer In 2019 9.2 years on average * Source: Consumer Confidence Survey from Cabinet Office For all car-related services, provide one-stop services in stores 20
Slide 21: Our Strategy on Inventory Turnover Rate
Our Strategy on Inventory Turnover Rate From a fixed cost perspective From a product value perspective Over time Higher inventory turnover rate Value of used cars declines Sales volume increases Higher inventory turnover rate (Accelerated sales) Fixed costs per unit Decline in inventory value ar
Slide 22: New Vehicle Dealership
New Vehicle Dealership 6 4 JAGUAR 8 VOLVO storefronts Audi storefronts LAND ROVER storefronts * Number of storefronts: at the end of May 2019 22
Slide 23: New Vehicle Dealership
New Vehicle Dealership 1 1 Volkswagen storefronts MASERATI storefronts NEXTAGE’s authorized imported car dealerships Provide customers with high value-added dealership services by leveraging the sales technique and one-stop services we have cultivated. New store openings Ｍ＆Ａ Active engagement * Numb
Slide 24: Enhancing Authorized Imported Car Dealership Business
Enhancing Authorized Imported Car Dealership Business ■ Change in imported vehicle registrations in Japan (passenger cars) 308,389 305,043 300,000 294,060 288,830 284,471 278,846 250,000 239,546 203,800 200,000 192,317 180,255 159,143 150,000 100,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 25: Business Model for the General Stores
Enhancing Authorized Imported Car Dealership Business Business Model for the General Stores Lifelong customer Transactions within a relationships household Business with recurring A business model that helps us to grow every revenue year Key to increase profits (1) New car sales volume Authorized de
Slide 26: Results and Plans (Net Sales, Ordinary Income)
Results and Plans (Net Sales, Ordinary Income) Change in Net Sales Change in Ordinary Income (Millions of yen) (Millions of yen) 250,000 6000 Q2 Net sales Q2 Net sales 5,500 215,000 Q4 Net sales Q4 Net sales 5000 200,000 4,186 163,174 4000 150,000 3,304 3,194 118,971 3000 104,821 100,000 87,201 2,08
Slide 27: New Store Openings
New Store Openings Change in number of locations by category Change in number of stores and locations 100% 140 132 90% 120 80% 104 70% 100 57 49 86 60% 74 46 80 50% 45 67 42 63 60 56 40% 51 47 42 30% 40 10 5 20% 20 19 10% 1 13 1 4 0 0% 0 1 Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019
Slide 28: Employee Education
Employee Education Hired a record-high of 562 new graduates in 2019 (vs. 399 in 2018) We explore and practice effective training methods on an ongoing basis through developing a training system, improving the environment and introducing proprietary tools (e.g., N- BOOK and Growing Together noteboo
Slide 29: Enhancing Governance Structure
Enhancing Governance Structure Measures for enhancing monitoring Review of potential risks and checking functions Risk identification by each Multiple checking system and department enhancement of checking function (Sales, Purchasing, Maintenance, Dealer) Risk Management Committee Every month, the
Slide 30: Market Size of Car Industry
Market Size of Car Industry Retail used car Trade-in and Maintenance New import market purchasing used market vehicle market car market Approx. Approx. Approx. ¥5.4 trillion Approx. ¥2.7 trillion ¥2.0 trillion (Vehicle safety ¥1.5 trillion (Approx. 2.6 (Approx. 4.0 inspection: Approx. (Approx. 0.30
Slide 31: The Vision for 2030 Future Growth
The Vision for 2030 Future Growth Net sales of used car Net sales of new car dealership bases dealership bases ＋ Large-sized stores Sale of new/certified used cars Car sale, Inspection/Maintenance/Vehicle Inspection/Maintenance/Vehicle Safety Inspection, Net Sales Safety Inspection Car Insurance, Pu
Slide 32: CSR Initiatives
CSR Initiatives Donation to Kumamoto Castle NEXTAGE makes donations in proportion to the number of cars sold and vehicle safety inspections carried out. The initiative started in January 2017, in proportion to the number of cars and vehicle safety inspection carried out by our stores in Kumamoto pre
Slide 33: Contents
Contents 1. Results Overview 2. Fiscal 2019 Initiatives 3. Reference Information 33
Slide 34: Reference Information
Reference Information 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 FY2014 11,623 10,779 10,423 13,180 FY2014 624 552 321 782 Fiscal 2015 FY2015 12,439 11,297 10,6
Slide 35: Reference Information
Reference Information New store openings (¥ million, %) New store openings (¥ million, %) Net sales Q1 Q2 Q3 Q4 Operating income Q1 Q2 Q3 Q4 Quarter 2,411 2,511 2,287 4,094 Quarter 16 98 -9 227 Fiscal 2015 Cumulative 2,411 4,968 5,775 7,763 Fiscal 2015 Cumulative 16 118 43 135 YoY 78.0% 77.4% 97.1%
Slide 36: Reference Information
Reference Information Car sales-related (¥ million, %) Maintenance-related (¥ million, %) Net sales Q1 Q2 Q3 Q4 Total Net sales Q1 Q2 Q3 Q4 Total (1) Fiscal 2014 11,123 10,263 9,765 12,404 43,556 (1) Fiscal 2014 163 189 195 221 769 (2) Fiscal 2015 13,506 12,678 11,773 14,961 52,920 (2) Fiscal 2015 2
Slide 37: Reference Information
Reference Information (¥ thousand) Q1 Q2 Q3 Q4 Full year Consolidated statements of income Fiscal 2017 Fiscal 2018 YoY Fiscal 2017 Fiscal 2018 YoY Fiscal 2017 Fiscal 2018 YoY Fiscal 2017 Fiscal 2018 YoY Fiscal 2017 Fiscal 2018 YoY Net sales 27,092,501 34,559,861 27.6% 30,472,194 41,081,383 34.8% 30,
Slide 38: Notices
Notices Start of the distribution of the IR E-magazine The Company will distribute in a timely manner a variety of IR information to those people who register their email addresses on the Company website for its IR E- magazine. This initiative is intended to help people to understand the Company bet
Slide 39: 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 agency