Slide 1: Results for FY March 2012 and Forecasts for FY March 2013
Translation ANALYST MEETING Results for FY March 2012 and Forecasts for FY March 2013 May 11, 2012 Setsuo Wakuda Representative Director and CEO AUTOBACS SEVEN CO., LTD.
Slide 2: What We Want to Tell You Today
WHAT WE WANT TO TELL YOU TODAY 1. CONSOLIDATED FINANCIAL RESULTS FOR FY MARCH 2012: Achieved performance targets although the Group had to face with a rapidly changing business environment 2. PROGRESS AND UPDATES OF THE “AUTOBACS 2010 MEDIUM-TERM BUSINESS PLAN” First two years proceeded in line
Slide 3: 1. Consolidated Financial Results for FY March 2012
1. CONSOLIDATED FINANCIAL RESULTS FOR FY March 2012 2
Slide 4: Financial Results (FY March 2012)
FINANCIAL RESULTS (FY MARCH 2012) BOTH SALES AND PROFIT RISING: Performance targets were achieved as planned by adapting to the rapidly changing business environment, and by steadily implementing the medium-term business plan policies. (Billion Yen) FY March 2012 Latest Actual YoY change Change from
Slide 5: Factors Affected to the FY 2012 Result
FACTORS AFFECTED TO THE FY 2012 RESULT 1st Half 2nd Half Disaster, • Suspended operations at two • Demand rise for automotive goods and Earthquake stores (until August 2011) services thanks to the recovery of car • Demand drop for automotive sales goods and services due to car sales decline • Shorta
Slide 6: Domestic Retail Sales (FY March 2012)
DOMESTIC RETAIL SALES (FY MARCH 2012) (Billion Yen) Retail sales including FCs*: 297.5 billion Yen (+ 0.9% YoY) 350 Car related goods and services sales: 294.7 297.5 262.5 billion Yen (+0.2% YoY) 300 Car purchase & sales: 250 16.5 billion Yen (+14.0% YoY) 17,910 cars (+10.0% YoY) 200 Safety inspecti
Slide 7: Sales Trend: Retail & Wholesale (FY March 2012)
SALES TREND : RETAIL & WHOLESALE (FY March 2012) Retail sales* & Wholesale sales (YoY change) （％） 30.0 Rush demand of tires - Earlier than usual preparation of snow Reaction to LY’s before raise in price tires at stores 25.0 decline caused by - Increased wholesale for store reforms the earthquake 17
Slide 8: Sales Trend: By Merchandise (FY March 2012)
SALES TREND: BY MERCHANDISE* (FY March 2012) (for 12 months ended March 31, 2012; YoY change in amount; total store basis) （Million Yen） Summer tires: +1,100 MY ETC devices: -1,500 MY 3,000 Car navigation devices: -1,200 MY Snow tires: +1,200 MY 2,350 (yoy +5% in volume) Body work & paintings: +370
Slide 9: Performance by Country (FY March 2012)
PERFORMANCE BY COUNTRY (FY March 2012) FRANCE CHINA SINGAPORE THAILAND Number of stores at March 31, 2012 11 4 3 4 -including FC stores- Same store sales +2.1% -3.0% +5.1% -3.6% -including FC stores- FY March FY March FY March FY March FY March FY March FY March FY March Period 2012 2011 2012 2011 2
Slide 10: Operating Income Components (FY March 2012)
OPERATING INCOME COMPONENTS (FY March 2012) Domestic Retail sales Total store basis: +0.9%／ same store basis: +0.1% Operating income (Million yen) Amount Major drivers of variance (yoy) Non-consolidated 13,590 +1,841 MY • Net sales +886 (+0.5%) • Gross Profit +1,120 (21.3% (last year 20.9%)) -due to
Slide 11: Major Drivers of Variance (FY March 2012)
MAJOR DRIVERS OF VARIANCE (FY March 2012) (Billion Yen) FY March 2012 FY Mar Results YoY 2011 Major drivers of variance % of Sales % of Sales change Net sales 237.3 +0.4% Non-consolidated sales: +0.9BY 236.4 Domestic store subsidiaries: +0.5BY Overseas subsidiaries: +0.3BY Gross margin 77.0 +1.7% Wh
Slide 12: Store Openings and Closings (FY March 2012)
STORE OPENINGS AND CLOSINGS (FY March 2012) Domestic stores No. of FY March 2012 No. of stores at stores at Store Type March 31, 1st-half 2nd-half March 31, 2011 New S/B・R/L Close New S/B・R/L Close 2012 AUTOBACS 404 ＋6 ＋5/-3 ＋17 ＋3/-1 -1 430 Super AUTOBACS 76 76 AUTO HELLOES 5 -4 1 AUTOBACS Secohan
Slide 13: 2. Progress and Updates of the AUTOBACS 2010 Medium-Term Business Plan
2. PROGRESS AND UPDATES OF THE “AUTOBACS 2010 MEDIUM-TERM BUSINESS PLAN” 12
Slide 14: AUTOBACS 2010 Medium-Term Business Plan
AUTOBACS 2010 MEDIUM-TERM BUSINESS PLAN Management Targets Consolidated operating income: 16 BY ROE 7.0% DOE* 3.0% 1. Domestic Business 1) Improving store profitability Existing store reform Operating margin of existing Merchandise/ purchase reform AB-format stores: 6.9% Human resources/ store opera
Slide 15: 1-1) Improving Store Profitability
1-1) IMPROVING STORE PROFITABILITY FY March 2012 result Operating margin of existing AB-format stores: 6.0%* （LY: 5.7%) Existing store reform - Executed at 217 AB-format stores (as planned) Effect of Store reform experiment After-reform Before-reform Difference Retail sales (YoY rate) 101.7% 97.9% +
Slide 16: Gross Margin Improvement Program
1-1) IMPROVING STORE PROFITABILITY Gross Margin Improvement Program Initiatives taken by each merchandise category Tires • Improved gross profit by putting sales composition target per major manufacturer Car Electronics • Reviewed pricing of bargain items; strengthened sales of regular goods • Impro
Slide 17: 1-2) Increasing Market Share
1-2) INCREASING MARKET SHARE FY March 2012 result AUTOBACS Group’s Auto aftermarket share: approx. 15%* (level equal to last FY) New store opening - Number of new stores: 23 (up 17stores from last FY) - New store sales budget achievement rate: 105.4％ - Store running costs reduction: proceeded about
Slide 18: New Store Opening in FY March 2012
1-2) INCREASING MARKET SHARE New Store Opening in FY March 2012 STORE NAME Opening date STORE NAME Opening date 1 AUTOBACS Matsuyama Homen Store April 21, 2011 13 AUTOBACS Kumamoto Ueki Store November 17, 2011 2 AUTOBACS Tokamachi Store April 22, 2011 14 AUTOBACS Ibaraki Nishi Store November 18, 201
Slide 19: Expansion of Body Repair and Painting Business
1-2) INCREASING MARKET SHARE Expansion of body repair and painting business All stores started reception of BP* services ・Implemented reception/ valuation system for Number of cars that received body repair light body work (“AUTOBACS Quick Repair”) and painting services at AUTOBACS （thousand cars） G
Slide 20: 2. Overseas Business
2. OVERSEAS BUSINESS FY March 2012 result • Overseas Subsidiaries: Operating Income turned into the black - France: Become profitable at the operating level through continuous management effort - China: Opened the 2nd store in Shanghai Services are positive but issues remain in retail of automotive
Slide 21: 3. Financial Strategies – Shareholder Return Policy
3. FINANCIAL STRATEGIES – Shareholder return policy （Billion Yen） 14.0 9.85 9.85 10.22 11.83 12.0 10.0 8.0 6.20 7.20 Share 5.37 5.23 5.46 6.0 buyback 2.46 4.0 Dividend 2.0 3.75 4.48 4.62 4.76 4.63 0.0 FY March 2009 FY March 2010 FY March 2011 FY March 2012 FY March 2013 (Forecast) Dividend per 100 Y
Slide 22: Toward the Goal of 16BY in Operating Income
TOWARD THE GOAL OF 16BY IN OPERATING INCOME （billion yen） Below plan by Below plan by 17.0 Below plan by -0.1 -0.2 -0.3 Below plan by 0.8 Plan±0 Plan±0 15.0 Plan +0.9 Surpassed plan by -1.9 0.4 13.0 0.5 Plan +2.4 11.0 2.6 16.0 Plan +2.6 9.0 10.1 7.0 5.0 FY2010 Non-consolidated Domestic store Oversea
Slide 23: 3. Financial Forecasts for FY March 2013 and Measures to Achieve the Goal
3. FINANCIAL FORECASTS FOR FY MARCH 2013 AND MEASURES TO ACHIEVE THE GOAL OF THE MEDIUM-TERM BUSINESS PLAN 22
Slide 24: Financial Forecasts (FY March 2013)
FINANCIAL FORECASTS (FY March 2013) (Billion Yen) FY March 2013 (Forecasts) FY March 2012 Results YoY change 1st-half 2nd-half Full year (amount & rate) Net sales 237.3 116.3 126.2 242.5 +5.2 Gross margin 77.0 37.1 41.1 78.2 +1.2 % to Net sales 32.5% 31.9% 32.6% 32.2% +1.5% SG&A 63.3 30.9 32.8 63.7
Slide 25: Factors Behind the Forecasts (FY March 2013)
FACTORS BEHIND THE FORECASTS (FY March 2013) Business Environment • Robust earthquake recovery demand in the Tohoku region • Strong new car sales trend • Increasing energy cost Items likely to affect the Company’s performance 1. Reaction to last year’s high tire prices; demand resulting from unusual
Slide 26: Domestic Sales Measures (FY March 2013)
DOMESTIC SALES MEASURES (FY March 2013) Automotive Goods Sales: • Concentrate on sales of Tires, Oil and Batteries • Implement sales promotions aiming at new car purchasing customers (car navigation devices, car accessories, etc.) • Promote internet sales Installation and Maintenance Services: • Inc
Slide 27: Forecasts at Parent & Subsidiary Level (FY March 2013)
FORECASTS AT PARENT & SUBSIDIARY LEVEL (FY March 2013) (Billion Yen) FY March FY March 2013（Forecasts） 2012 YoY change results 1st-half 2nd-half Full Year (amount) Non-consolidated Net sales 195.6 97.7 104.8 202.5 +6.9 Ordinary 13.59 6.5 7.7 14.2 +0.61 income Domestic store Net sales 81.71 39.7 43.7
Slide 28: Medium-Term Business Plan Key Measures in FY Mar 2013
MEDIUM-TERM BUSINESS PLAN Key Measures in FY Mar 2013 1. Domestic Business I. Improving Store Profitability • Enhance the power of individual stores • Improve profitability of domestic store subsidiaries II. Promoting New Store Openings • Target: 40 new stores (financial forecast figures are based o
Slide 29: Measures to Improve Store Profitability
MEASURES TO IMPROVE STORE PROFITABILITY Enhance the power of individual stores Performance after Store Reform Top 10 stores Worst 10 stores Retail sales (YoY rate) +21.6% -3.5% Number of customers (YoY rate) +15.0% -3.6% 1. Improve store operation efficiency through store operation reform 2. Apply t
Slide 30: Store Openings and Closings (FY March 2013)
STORE OPENINGS AND CLOSINGS (FY MARCH 2013 ) Domestic stores No. of FY March 2013 (Forecasts) No. of Store Type stores at 1st-half 2nd-half stores at Mar 31, Mar 31, 2012 New S/B・R/L Close New S/B・R/L Close 2013 AUTOBACS 430 ＋12 ＋1/-1 ＋17 ＋4/-3 -1 459 Super AUTOBACS 76 76 AUTO HELLOES 1 -1 0 AUTOBAC
Slide 31: Overseas Business (FY March 2013)
OVERSEAS BUSINESS (FY MARCH 2013 ) CHINA • Open 2 new stores in Shanghai, China Continue effort to build new store model • Conduct joint research into China’s statutory safety inspection and maintenance system ASEAN • Conduct full-scale study of opening stores including in Malaysia FRANCE • Improve
Slide 32: Toward the Goal of Medium-Term Business Plan
TOWARD THE GOAL OF MEDIUM-TERM BUSINESS PLAN (Billion Yen) Operating income & ROE 18 16.0 8.0% Operating income 13.7 14.5 16 7.0% ROE 6.5% 6.0% 14 11.9 DOE 5.7% 3.8% 4.1% 12 4.0% 2.3% 2.4% 3.0% 10 3.2% 3.3% 3.3% 3.0% 2.0% 8 0.9% 10.1 6 0.0% 4 6.9 5.0 -2.0% 2 -2.1% 0 -4.0% FY 2008 FY 2009 FY 2010 FY
Slide 33: Appendix
APPENDIX onting aan" aN AUTOBACS 32
Slide 34: Quarterly P/L (FY March 2012)
QUARTERLY P/L (FY March 2012) (Billion Yen) Q1 Q2 Q3 Q4 YoY YoY YoY YoY Net Sales 59.3 +0.5% 55.4 -1.1% 72.9 +0.4% 49.7 +2.1 Gross margin 18.6 +3.2% 18.3 +3.1% 22.9 +2.1% 17.2 -1.7 SG&A 15.4 -3.3% 15.4 -2.4% 16.1 +1.6% 16.5 +1.3 Operating income 3.2 +52.3% 3.0 +45.8% 6.8 +3.1% 0.8 -40.0 Non-operatin
Slide 35: Performance by Company Segments
PERFORMANCE BY COMPANY SEGMENTS (Billion Yen) FY March FY March YoY Latest Actual vs. 2012 2011 （％） forecast forecast (%) Net Sales 195.6 194.7 0.5 194.2 0.7 Non-consolidated Operating Income 13.6 11.7 15.7 12.6 7.9 Domestic store Net Sales 81.7 81.2 0.6 81.2 0.6 subsidiaries Operating Income 0.4 0.
Slide 36: Performance Breakdown (FY 2012 vs FY 2011)
PERFORMANCE BREAKDOWN (FY 2012 vs FY 2011) Parental company (Non-consolidated) (Billion Yen) +1.12BY ↑Tires & wheels, other equipments Net Sales Wholesale +0.6% ↓Car electronics devices, motorsports goods, etc 195.6BY YoY +0.89BY -0.27BY Retail ↓Second-hand automobile goods, external items, etc -2.9
Slide 37: Reorganization of Store Subsidiaries
REORGANIZATION OF STORE SUBSIDIARIES Measures Contents Transfer of Store 1. Transfer store ownership of three stores in Ownership Hiroshima prefecture to the Group’s franchisee 2. Transfer store ownership of one store in Osaka prefecture to the Group’s franchisee Merger among 1. Consolidate store ow
Slide 38: Decrease in Consolidation Adjustments
DECREASE IN CONSOLIDATION ADJUSTMENTS Consolidation Adjustments (Million Yen) FY March 2012 FY March 2011 Operating Income for segment total 14,654 12,728 Inventories -325 -66 (Unearned income of subsidiary inventories, etc.) Depreciation of Goodwill -76 -152 Allowance for point card -83 -24 Elimina
Slide 39: Statutory Inspection and Car Sales Business
Statutory Inspection and Car Sales Business Statutory car inspection Car sales (Thousands cars) (total stores) (total stores) (Thousands cars) 700 25 Full year Full year estimate estimate 21.2 600 580 20.6 535 20 20 498 17.9 500 447 16.2 389 14.6 400 15 338 300 10 200 5 100 0 March March March March
Slide 40: Balance Sheet: Assets
BALANCE SHEET: Assets (Billion Yen) Total Assets 207.8 BY 217.9 BY Cash and deposits Trade notes and account 51.0 Cash and deposit: +7.2 BY 43.8 receivables Lease investment assets 26.8 Land and Building: +2.1 BY 23.0 Increase due to new store opening 13.4 Securities 13.4 and store reform 13.3 Inven
Slide 41: Balance Sheet: Liabilities and Equity
BALANCE SHEET: Liabilities and Equity (Billion Yen) Total Liabilities and Equity 207.8 BY 217.9 BY Accounts payable Major items changed ST borrowings: -1.0 BY ST borrowings and 24.3 15.3 corporate bond 3.2 5.2 Accounts payable: +9 BY 22.2 Other ST liabilities 26.1 8.7 5.3 Other LT liabilities：-3.3 B
Slide 42: Performance Results of Franchisees
PERFORMANCE RESULTS OF FRANCHISEES Ordinary Income of Franchise Companies (Preliminary) (Billion Yen) 10.0 Total of profit-making FCs Total of loss-making FCs 8.0 8.0 6.9 8.3 Orginary income(net) 6.0 4.7 4.0 2.6 2.0 0.0 -2.0 FY March 2008 FY March 2009 FY March 2010 FY March 2011 FY March 2012 41
Slide 43: 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