Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — H1 FY2012 Earnings Presentation
36 slides from Autobacs Seven's earnings presentation, Nov 1, 2011
Slide 1: Results for the Six Months Ended September 30, 2011
Translation ANALYST MEETING Results for the Six Months Ended September 30, 2011 November 1, 2011 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. RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2011: Significant performance improvement attained due to higher gross margin and lower SG&A expenses and smaller than expected earthquake impact. 2. FINANCIAL FORECAST FOR THE LATTER SIX MONTHS OF FY 2012 (from Oct 1
Slide 3: 1. Results for the Six Months Ended September 30, 2011
1. RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2011: 2
Slide 4: Financial Results (Six Months Ended Sep. 30, 2011)
FINANCIAL RESULTS (Six Months Ended Sep. 30, 2011) SALES DECLINE BUT PROFIT INCREASE: Net sales declined mainly affected by new car sales decline, though earthquake impact was smaller than expected. Gross margin improved due to change in merchandise mix, increase in rebates and reduction of discount
Slide 5: Factors Affected to the First Six Months Result
FACTORS AFFECTED TO THE FIRST SIX MONTHS RESULT • East Japan Great Earthquake ↓ Decline in automobile production and sales volume Discontinuation of 1,000-yen-limit on expressway tolls on Weekends and holidays ↑ Increase in demand for car goods in Tohoku region （same store sales yoy +11.1% at Tohoku
Slide 6: Sales Variance by Merchandise
SALES VARIANCE BY MERCHANDISE 【Same store basis】 Sales: -0.8% YoY, Number of customers: -2.8% YoY （Million Yen） Retail sales ups and downs by merchandise category (for six months ended Sep. 30, 2011, YoY change in amount, total store basis) 3,000 +1.8％ in volume +1.8 +3.6％ in revenue 2,000 +1.6 in u
Slide 7: Sales Trend: Retail and Wholesale
SALES TREND: Retail and Wholesale Retail sales & Wholesale sales (YoY change for the last 12 months) （％） 30.0 Last-minute shopping of 25.0 tires before price-ups Earlier than usual preparation of snow tires at stores 20.0 17.0 Strong demand of tuners Increasing wholesale occurring 15.0 for digital t
Slide 8: Domestic Retail Sales
DOMESTIC RETAIL SALES (Billion Yen) Retail sales including FCs: 140.7 billion Yen (▲ 0.5% YoY YoY)) 150 141.3 140.7 Car related goods and services sales: 124.1 billion Yen (▲1.0% YoY) Car purchase & sales: 100 7.6 billion Yen (+6.8% YoY) 8,479 cars (+6.1% YoY) 125.3 124.1 Safety inspection & mainten
Slide 9: Factors Led to Gross Margin Improvement
FACTORS LED TO GROSS MARGIN IMPROVEMENT First half of FY 2012 Gross Margin(Plan) 31.6％ Gross Margin(Result) 32.2％ • Change in Merchandise Mix ↑Increased sales of Tires (price rise, earlier than usual wholesaling of snow tires) ↑Strong sales of digital terrestrial tuners and related services ↓Smaller
Slide 10: Major Drivers of Variance
MAJOR DRIVERS OF VARIANCE (Billion Yen) Six months ended September 30, 2011 Six Months ended Results YoY change Major drivers of variance September % of Sales 30, 2009 Net sales 114.7 ▲0.3％ Whole Sales +0.2BY （Tires +1.5BY, Car electronics devices 115.0 -0.6BY, internal items -0.4BY, motorsports goo
Slide 11: Segment Information
SEGMENT INFORMATION (Billion Yen) Six months Six months YoY Initial % to Plan ended ended Change Forecast September 30, September 30, 2011 2010 Net sales 95.00 94.12 +0.9% 95.0 +0.0% Non-consolidated Operating income 6.48 4.49 +44.3% 5.5 +17.8% Net sales 38.97 39.22 ▲0.6% 38.6 +1.0% Domestic store s
Slide 12: Consolidation Adjustments
CONSOLIDATION ADJUSTMENTS Consolidation Adjustments (Million Yen) Six months ended Six months ended September 30, 2011 September 30, 2010 Operating Income for segment total 6,719 4,422 Inventories ▲259 ▲201 (Unearned income of subsidiary inventories, etc.) Depreciation of Goodwill ▲41 ▲134 Allowance
Slide 13: Geographical Segments: Overseas
GEOGRAPHICAL SEGMENTS: OVERSEAS Results of overseas subsidiaries by country FRANCE CHINA SINGAPORE THAILAND Number of Stores at September 30, 2011 11 4 2 4 -include FC stores- Comparable store sales YoY change for the six months ended +4.1% +8.7% +10.6% +5.6% September 30, 2011 -include FC stores- s
Slide 14: Other Factors Affecting Overseas Business
OTHER FACTORS AFFECTING OVERSEAS BUSINESS • Flooding in Thailand ↓Car electronics manufacturers’ plants suspended operations and some delays occurred in shipment of new navigation devices. －Impact on stores and sales in Thailand is little, so far. • Lawsuit in the United States －No particular progre
Slide 15: 2. Financial Forecast for the Latter Six Months of FY 2012
2. FINANCIAL FORECAST FOR THE LATTER SIX MONTHS OF FY 2012 (from October 1, 2011 to March 31, 2012): 14
Slide 16: Forecasts for FY 2012
FORECASTS FOR FY 2012 (Billion Yen) FY 2012 Fiscal year Forecast for Results for Forecast for Revised forecast ended Mar the 12 the six Revised the latter six for the 12 months 31, 2011 months months amount months of FY ending % of sales ending Mar ended Sep 2012 Mar 31, 2012 ② ②－① 31, 2012 ① 30, 20
Slide 17: Factors to Affect the Latter Six Months Result
FACTORS TO AFFECT THE LATTER SIX MONTHS RESULT Surrounding Environment： ・Signs of recovery in new car sales ・Continuing demand linked to digital terrestrial broadcasting ・Growing demand for automobiles and car goods, especially in the Tohoku region ・Risk that flooding in Thailand may affect certain
Slide 18: Key Retail Measures: Car Goods and Services
KEY RETAIL MEASURES: Car goods and services 1. Prepare for the expected growth in new car sales －Create sales counter with various car navigation devices targeting on cars without car audios －Strengthen sales of interior goods and accessories 2. Enhance sales share of tires and wheels －Create attrac
Slide 19: Key Retail Measures: Safety Inspection
KEY RETAIL MEASURES: Safety Inspection 1. Promote service reservations to member customers 2. Implement new follow-up system for customers reserved －Establish exclusive call center and start careful follow-up service to customers that reserved inspection by online or by phone 3. Improve service for
Slide 20: Key Retail Measures: Car Sales
KEY RETAIL MEASURES: Car Sales 1. Increase used car assessments and purchases - Number of car purchases at stores have increased after the earthquake ⇒Contracts concluded based on assessments in first half: +32% YoY 2. Utilize shared inventory to increase sales THE GROUP’S INTERNAL DISTRIBUTION MECH
Slide 21: 3. Measures and Progress of Autobacs 2010 Medium-Term Business Plan
3. MEASURES AND PROGRESS OF “AUTOBACS 2010 MEDIUM- MEDIUM-TERM BUSINESS PLAN”: 20
Slide 22: Progress of Medium-Term Business Plan
PROGRESS OF MEDIUM- MEDIUM-TERM BUSINESS PLAN Measures Progress of individual measure 1. Improving store profitability -completed reform at 103 stores (fiscal year target is 215 stores) 1)Store reform -examining countermeasures for new tasks 2)Merchandise/ -gross margin improved due to strict select
Slide 23: Progress of Store Reform
PROGRESS OF STORE REFORM Comparison of the store performance before and after reform Stores before reform After-reform stores (198 stores) (187 stores) Difference -YoY change rate- -YoY change rate- Retail sales 98.1％ 100.6％ +2.5pt Number of customers 96.4％ 98.1％ +1.7pt Sales of Car goods 97.8％ 100.
Slide 24: Progress of Store Reforms
PROGESS OF STORE REFORMS Achievement: Positive outcome attained in terms of number of items purchased by customers, gross margin, and etc. Other effects, such as reduction of fixture costs (down around 30% from before), also attained New Challenges: Level of effectiveness varies from store to store.
Slide 25: Progress of New Store Openings
PROGRESS OF NEW STORE OPENINGS Store openings until October, 2011 STORE NAME Formats Opening date 1 AUTOBACS Matsuyama Homen Store Standard April 21, 2011 2 AUTOBACS Tokamachi Store Small Store April 22, 2011 3 AUTOBACS Tsuruoka Store Store for small August 11, 2011 commercial-zone 4 AUTOBACS Kumata
Slide 26: Progress of New Store Openings
PROGRESS OF NEW STORE OPENINGS Number of store openings: planning 25 new stores for FY 2012 (less than the initial forecast by 6 store) Achievements: store sales above internal plan by +6.9% (boosting by 10 new store openings in March 2011) However, Level of achievements varies from store to store R
Slide 27: To Improve Autobacs Brand Value
TO IMPROVE AUTOBACS BRAND VALUE Improve AUTOBACS brand value Improve qualities of each store Increase Relief, Safety and Trust from Customers 26
Slide 28: What We Want to Tell You Today: Review
WHAT WE WANT TO TELL YOU TODAY: Review ・Although under the conditions that prevailed after the earthquake, the first six months profit results were higher than the forecast. ・In the latter six months of the fiscal year, the Company faces a number of uncertainties, but will push ahead with business a
Slide 29: Appendix
gZibyozens Foal A—bhINYIAR APPENDIX 28
Slide 30: Performance Breakdown
PERFORMANCE BREAKDOWN Non-consolidated +1.15BY ↑ Tires & wheels, new and used cars Net Sale Whole Sale (+1.3%) ↓ Car electronics devices, internal items, motorsports goods 95.0BY -0.25BY ↑ Fuel YOY: +0.88BY Retail (-5.5%) ↓ Used parts, internal items, motorsports goods +1.18BY ↑ Tires & wheels, Car
Slide 31: Balance Sheet: Assets
BALANCE SHEET: Assets (Billion Yen) Total Assets 207.8 BY 202.5 BY Cash and deposits Major items changed Trade notes and account 43.8 receivables Marketable securities：-4BY 43.7 Lease investment assets Inventories：+1.5BY 23.0 22.1 13.4 Securities 13.8 Accounts receivable: -3.7BY 13.3 Inventories 9.3
Slide 32: Balance Sheet: Liabilities and Equity
BALANCE SHEET: Liabilities and Equity (Billion Yen) Total Liabilities and Equity 207.8 BY 202.5 BY Accounts payable Major items changed ST borrowings: -1.0 BY ST borrowings and 15.3 corporate bond 15.3 3.2 ST borrowings: +1.5 BY 4.7 22.1 Other ST liabilities 16.8 8.7 6.7 Other ST liabilities 10.5 Bo
Slide 33: Dividend Plan
DIVIDEND PLAN Dividend per share and Dividend on Equity （Yen） 135 140 4% 300% 140 125 260.6% 3.2% 3.2% 250% 120 100 100 3% 3.0% 100 200% 2.3% 2.4% 80 2% 150% 58 60 1.4% 100% 77.2% 40 1% 24.3% 75.9% 50% 20 55.6% 0% 0% 0 Dividend on Equity(DOE) Dividend payout ratio Share Buyback Plan Period：May 12, 2
Slide 34: Store Openings and Closings
STORE OPENINGS AND CLOSINGS Domestic Store Fiscal year ending March 31, 2012 From Apr 1, 2011 From Oct 1, 2011 As of to Sep 30, 2011 (Result) to Mar 31, 2012 (Forecast) March As of Sep As of March 31, 2011 New S/B R/L Close 30, 2011 New S/B R/L Close 31, 2012 AUTOBACS 404 +6 +5/▲3 ▲1 411 +19 +3/▲1 ▲
Slide 35: Performance Results of Franchisees
PERFORMANCE RESULTS OF FRANCHISEES Ordinary Income of Franchise Companies (Million Yen) 4,000 Total of profit-making FCs Total of loss-making FCs 2,000 1,394 0 308 54 -1,204 -2,000 -2,389 -4,000 6 months 6 months 6 months 6 months 6 months ended Sep 30, ended Sep 30, ended Sep 30, ended Sep 30, ende
Slide 36: 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