Slide 1: Fiscal 2023 Financial Results Presentation
Financial Results Presentation Fiscal 2023 Financial Results Presentation January 9, 2024 NEXTAGE Co., Ltd. (3186)
Slide 2: Contents
Contents １．Results Overview ２．Reference Information 2
Slide 3: Fiscal 2023 Business Performance
Fiscal 2023 Business Performance (Millions of yen) FY2023 Percent of Comparison FY2022 FY2023 FY2023 FY2023 FY2023 YoY with plan cumulative net sales 4Ｑ 1Ｑ 2Ｑ 3Ｑ 4Ｑ Net Sales 463,464 100.0％ 110.8％ 100.7％ 128,786 117,937 111,890 119,396 114,241 Gross Profit 86,827 18.7％ 117.3％ － 20,208 17,680 23,970
Slide 4: Market Environment (the Number of Car Registrations)
Market Environment (the Number of Car Registrations) ■ Used car registrations （December 2022 to November 2023） Results Results Comparison Results Comparison Number of units in FY2023 in FY2022 with FY2022 in FY2021 with FY2021 Ordinary passenger cars 2,529,503 2,504,355 101.0% 2,688,051 94.1% Kei (l
Slide 5: 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 Sep.
Slide 6: 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 12,592 13,000 12,329 10,914 11,000 9,206 9,000 8,989 8,134 8,598 8,110 7,000 8,460 8,309 7,629 7,664 7,789 7,174 7,242 5,00
Slide 7: Changes in Primary KPI Status
Changes in Primary KPI Status Retail car sales Vehicle purchases （Number of units） （Number of units） 155,003 202,010 160,000 200,000 120,440 155,875 120,000 150,000 YoY YoY 80,000 100,000 40,000 128.7％ 50,000 129.6％ 0 0 Fiscal 2022 Fiscal 2023 Fiscal 2022 Fiscal 2023 cumulative cumulative cumulative
Slide 8: Financial Results of Each Business Unit
Financial Results of Each Business Unit ■: :売上高 ■ Net sales ■ Changes in net sales and gross profit of each business unit ■: :売上総利益 ■ Gross profit （Millions of yen） Purchasing stores Used vehicle dealerships Net sales160000 129,738 Net sales 50000 320000 123,139 269,808 YoY YoY 241,588 75000 240000
Slide 9: 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 Selling, general and administrative expenses ratio 22.0% 21.4% 20.9% 20.0% 19.5% Operating 19.0% income margin 3.7% 1.4% 17.
Slide 10: 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 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% 26.6 23.3 33.1 30.9 41 .0 50% 72,563 58,586 41.5 46.0 32.3 36.7 25.3 0% FY2022 FY2023 FY2023 FY2023 FY2024 Q4 Q1 Q2 Q3 Q4 within 1 m
Slide 12: 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 61.6 38.9 38.6 55.6 61.3 37.2 50% 45.5 37.4 39.6
Slide 13: Operating Income Analysis
Operating Income Analysis (Millions of yen) YoY＋30.3％ The number of stores at the end of FY2023 +56 storefronts YoY ＋36.8％ YoY ＋30.9％ YoY＋28.1％ 19,448 The number of purchased vehicles 16,084 YoY＋29.6％ The number of retail sales YoY＋28.7％ 13
Slide 14: 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 （％） （％） （％） 160 120 140 100 120 200 80 100 80 60 100 60 40 40 20 20 0 0 0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2023 FY 2023
Slide 15: 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 120 0 100 80 -100 60 40 -200 20 0 -300 FY 2020 FY 2021 FY 2022 FY 20
Slide 16: Renewing the Management Philosophy and starting New NEXTAGE
Renewing the Management Philosophy and starting New NEXTAGE We aim to be a car dealer loved by all of our stakeholders and using our services for many years to come. 16
Slide 17: Countermeasures to declined sales volume and attached rate
Countermeasures to declined sales volume and attached rate countermeasures summary •Eliminate incentives that had been there since • Change in employee the foundation and consolidate process evaluation system evaluation •Work on teams consisting of 3-5 members • Introduction of a •Work on teams by s
Slide 18: Changes in number of visiting customers after the countermeasures
Changes in number of visiting customers after the countermeasures ■ Weekly store visits compared to previous year（only stores existed at the beginning of the period） 110% 100% 90% 80% 70% 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th week week week week week week we
Slide 19: Profit per Unit after the countermeasures
Profit per Unit after the countermeasures ■ Changes in profit per unit at used vehicle dealerships by components Accessories Financial Products （％） （％） 140 140 120 120 100 100 80 80 60 60 40 40 20 20 0 0 FY2023 2023/12 FY2023 2023/12 Q4 Q4 ※comparison based on FY2023 4Q Profit per units with accesso
Slide 20: Securing human resources in the future
Securing human resources in the future In the New NEXTAGE, the role of employees will be an advisor instead of a salesperson. Elimination of incentive system Stable salary structure Diverse recruitment and decrease in turnovers 20
Slide 21: Associates whom we look for
Associates whom we look for Background Associates whom we look for •Associates who continuously provide values to • Renewing of the all relative stakeholders with appreciation to management philosophy them • Change in evaluation •Associates who can stay attuned to customers system and dedicate for c
Slide 22: Forecast of Fiscal Year 2024
Forecast of Fiscal Year 2024 Profit attributable to Net Sales Operating Profit owners of parent ￥ 545.0 billion (YoY 117.6%) ￥ 20.0 billion (YoY 124.3%) ￥ 14.0 billion (YoY 121.1%) （Billions of yen） The first half of Component FY2024 Component ratio ratio YoY FY2024 forecast forecast Net Sales 262.0
Slide 23: Forecast of the final year of the medium-term management plan
Forecast of the final year of the medium-term management plan The medium-term FY 2024 management plan Forecast Net Sales Net Sales ￥ 500.0 billion ￥ 545.0 billion （Comparison with plan 109.0％） Operating Operating Profit Profit ￥ 30.0 billion ￥ 20.0 billion （Comparison with plan 66.6％） We work to imp
Slide 24: Improved ESG external evaluations and inclusion in FTSE's index
Improved ESG external evaluations and inclusion in FTSE’s index Evaluation Summary ’21 ‘22 ‘23 institutes “MSCI ESG Rating” is the worldwide evaluation index of ESG investment which MSCI analyses activities about ESG issues, risk BB BBB A management, and disclosure. "FTSE Russell ESG Rating" is a re
Slide 25: Changes in the Number of Locations
Changes in the Number of Locations ■ Change in the number of locations Standalone vehicle purchasing stores （Unit locations） 160 New vehicle dealerships Used car dealerships 140 131 121 115 120 105 109 100 100 80 76 55 60 46 49 39 43 38 40 27 23 21 21 21 22 22 21 20 0 FY2021 FY2022 FY2023 Q1 FY2023
Slide 26: FY 2023 Record of opened stores
FY 2023 Record of opened stores Difference Fiscal 2023 The beginning End of fiscal Change in store opened of fiscal 2023 Q1 Q2 Q3 Q4 2023 fiscal 2023 from initial plan Medium-sized 22 New store 2 24 +2 - dealerships openings storefronts storefronts storefronts storefronts storefront (Japanese cars)
Slide 27: Fiscal 2024 Store Opening Plan
Fiscal 2024 Store Opening Plan Change of business type Fiscal 2024 store The beginning End of fiscal Change in opening plan of fiscal 2024 at the Q1 Q2 Q3 Q4 2024 fiscal 2024 beginning of fiscal 2024 Medium-sized 24 24 -1 23 -1 dealerships Integration (Japanese cars) storefronts storefronts storefro
Slide 28: Contents
Contents １．Result overview ３．Reference Information 28
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet ■ Consolidated balance sheet （situations of assets and liabilities） As of the end of fiscal 2023 (Millions of yen) As of the end of fiscal 2022 (Millions of yen) Current Current assets Current liabilities Current assets 流動負債 108,589 liabilities 58,556 111,157 52,723 (Cash
Slide 30: Comparison in Existing-Stores
Comparison in Existing-Stores * Data are on a non-consolidated basis. 30
Slide 31: 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 32: 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 33: Changes in Quarterly Results
Changes in Quarterly Results （Unit： Million yen） 33
Slide 34: 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