Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — FY2019 Earnings Presentation
55 slides from Autobacs Seven's earnings presentation, May 9, 2019
Slide 1: FY March 2019 Analyst Meeting
FY March 2019 Analyst Meeting AUTOBACS SEVEN CO., LTD. May 9, 2019
Slide 2: Consolidated Results of FY March 2019 and Forecasts for FY March 2020
Ⅰ. Consolidated Results of FY March 2019 and Forecasts for FY March 2020
Slide 3: Consolidated P/L (FY March 2019)
Consolidated P/L (FY March 2019) Increase in net sales and net income: Increased sales of domestic AUTOBACS stores thanks to improved profitability at store subsidiaries. Sales of tires decreased YoY but previous year’s strong performance for dashcams was maintained. Although gross profit and SG & A
Slide 4: Major Index of FY March 2019
Major Index of FY March 2019 Consolidated Sales YoY +0.7% Total AUTOBACS stores retail sales YoY +0.5% Whole sales of non-consolidated company YoY +0.8% Gross Margin FY 2019 FY 2018 31.6% ← 32.0% SG&A YoY decreased 70 Million Yen Operating Income FY 2019 FY 2018 7.47 Billion Yen ← 7.78 Billion Yen E
Slide 5: Points for FY March 2019
Points for FY March 2019 ⚫ Sales of tires decreased YoY, reflecting increased demand due to snowfall mainly in Kanto region last January, but previous year’s strong performance for dashcams was maintained ⚫ Improvement in earnings of domestic store subsidiaries due to continuous efforts to raise gro
Slide 6: Sales and profits of Reporting Segments
Sales and profits of Reporting Segments (Million Yen) Sales (Million Yen) Profits 200,000 181,145 20,000 179,060 15,856 180,000 14,869 160,000 15,000 140,000 FY March 10,000 2018 120,000 100,000 5,000 FY March 80,000 2019 434 428 60,000 0 28,443 30,028 -842-1,076 40,000 -537 -783 20,000 11,217 2,207
Slide 7: Segment Information
Segment Information （Million Yen） FY March 2019 FY March 2018 YoY Summary result result Sales 179,060 181,145 -1.2% Net sales, gross profit and SG&A Domestic Gross margin 55,433 56,946 -2.7% decreased due to business AUTOBACS transfers of store subsidiaries. While expenses related to sales Business
Slide 8: Retail Sales in Total AUTOBACS Group Stores
Retail Sales in Total AUTOBACS Group Stores Retail sales including FCs*: 267.2 billion Yen (+0.5% YoY) (Billion Yen) 265.6 267.2 300 4.9 5.2 Second hand goods & Fuel: 5.2BY (+5.6% YoY） 250 18.7 19.6 Statutory safety inspection: 19.6BY (+4.4% YoY) 27.7 27.7 Number of cars inspected： 648,000cars (+2.3
Slide 9: FY March 2019 Review of Business Environment
FY March 2019 Review of Business Environment 【Same store basis】 Sales: +0.5% YoY, Number of customers: -2.5% YoY Same store sales and number of customers at domestic AUTOBACS-chain stores including FCs (YoY) 15% Sales Number of customers 10% 9.7% 4.1% 5% 3.2% 2.7% 3.9% 2.5% 1.6% 0.2% -0.2% 0% -0.3%
Slide 10: Sales Ups & Downs by Merchandise (FY March 2019)
Sales Ups & Downs by Merchandise (FY March 2019) Retail sales ups and downs by merchandise category (Million Yen） (FY March 2019, YoY change in amount, total store basis) 2,500 1,913 Car Navigation devices: -572 MY 2,000 Dashcams: +2,486 MY 1,500 1,321 Electronic devices installation services: +959
Slide 11: Profit Improvement of Store Subsidiaries
Profit Improvement of Store Subsidiaries (Million Yen) Operating income of store subsidiaries 2,000 1,475 1,633 1,000 270 0 -1,000 -974 -2,000 -1,924 -3,000 FY March 2015 FY March 2016 FY March 2017 FY March 2018 FY March 2019 Improve index of store subsidiary 45.0% 42.7% 42.8% 40.6% 40.2% 39.8% 39.
Slide 12: Non-Consolidated and Domestic Store Subsidiaries
Non-Consolidated and Domestic Store Subsidiaries (Million Yen) Non-consolidated Domestic Store Subsidiaries Results YoY Results YoY Net Sales 156,621 +308 53,453 -4,586 Gross 33,140 +838 22,857 -1,948 Margin(%) (21.2%) (+0.5pt) (42.8%) (+0.1pt) SG&A 26,930 +216 21,223 -2,107 Operating Income 6,210 +
Slide 13: Performance by Overseas Subsidiaries
Performance by Overseas Subsidiaries Performance of Consolidated Subsidiaries (Million Yen) France Thailand Singapore China Malaysia Australia Number of 11 15 3 0 4 0 stores* FY FY FY FY FY FY FY FY FY FY FY FY Period March March March March March March March March March March March March 2019 2018
Slide 14: Expectations for the Business Environment (FY March 2020)
Expectations for the Business Environment (FY March 2020) Business Environment [Positive Factors] - Continued growth in customers’ interest in dashcams - A rush demand ahead of the consumption tax hike - Growth in demand for statutory safety inspections as a result of an increase in the number of ve
Slide 15: Financial Forecasts (FY March 2020)
Financial Forecasts (FY March 2020) (Billion Yen) FY March 2019 FY March 2020 (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 213.8 105.0 118.0 223.0 +4.3% Gross profit 67.5 33.6 37.0 70.6 +4.5% 31
Slide 16: Forecasts of FY March 2020
Forecasts of FY March 2020 (Million Yen) FY March 2020 (Forecasts) YoY change 1st-half 2nd-half Full Year (amount) Domestic Net sales 85,090 97,720 183,810 +2.6% AUTOBACS Operating Business income 5,490 9,710 15,200 +2.2% Net sales 6,500 7,100 13,600 +21.2% Overseas Business Operating income -160 -1
Slide 17: Capital Expenditures & Depreciation
Capital Expenditures & Depreciation Capital Expenditures Depreciation (Billion Yen) (Billion Yen) 7.0 7.0 6.12 6.0 5.89 6.0 5.40 4.84 5.0 4.61 5.0 4.57 4.16 4.20 4.03 3.84 3.72 4.0 3.58 4.0 3.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 FY FY FY FY FY FY FY FY FY FY FY FY March March March March March March March
Slide 18: 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 50 2.91 30 30 30 40 6 2.09 0.00 30 4 20 30 30 30 2 4.95 4.95 4.78 10 0 0 FY March 2018 FY March 2019 FY March 2020 FY March 2018 FY March 2
Slide 19: Review of 2017 Medium-Term Business Plan and Outline of the Five-year Rolling Plan 2019
Ⅱ.Review of 2017 Medium-Term Business Plan and Outline of the Five-year Rolling Plan 2019
Slide 20: Review of 2017 Medium-Term Business Plan
Review of 2017 Medium-Term Business Plan
Slide 21: 2017 Medium-Term Business Plan Group Vision
2017 Medium-Term Business Plan Group Vision 1. Turnaround of AUTOBACS business Supported by customers as a result of the increasing appeal of stores and merchandise 2. Development of future growth drivers - Overseas business: Retail sales/services and wholesale business that meet the needs of each c
Slide 22: Results of 2017 Medium-Term Business Plan
Results of 2017 Medium-Term Business Plan Consolidated Operating Income Performance （Billion Yen） 13 12 12 Operating Income（Target） 11 Operating Income（Results） 10 9 9 8（Forecast） 8 ※ 7.4 7 7.2 7 7 FY March 2020 ROE 6 5.8 Target：7.0% 5 Forecast：4.7％ 4 FY March 2017 FY March 2018 FY March 2019 FY Mar
Slide 23: Three Values Provided to Customers by AUTOBACS
Results（Domestic AUTOBACS Business） Three Values Provided to Customers by AUTOBACS “Self- expression” Be more of yourself with beloved cars Use cars more Enjoy going out comfortably by car “Experience “Safety and and Security” Discovery” 19
Slide 24: Development of attractive products - safety and security
Results（Domestic AUTOBACS Business） ①Development of attractive products -Development of products related to safety and security, launch of a new brand Pedal Watcher JKM GORDON MILLER -Expansion of AQ. Lineup Engine Oil Disposable Car Air Freshener Clip Microfiber Cloths 20
Slide 25: Development of attractive products
Results（Domestic AUTOBACS Business） 1.Development of attractive products - Development of products that make car trips more enjoyable Drone glafit bike Campers - Development of products related to ARTA rebranding 21
Slide 26: Automobile lifestyle shop
Results（Domestic AUTOBACS Business） Automobile lifestyle shop ■Promote real store openings The 2nd：LaLaport NAGOYA Minato AQULS （Sep. 28, 2018 Opened） The 3rd：Yokohama Landmark Plaza JACK ＆ MARIE （Nov. 8, 2018 Opened） LaLaport NAGOYA Minato AQULS The 4th：MARK IS Fukuoka Momochi （Nov. 21, 2018 Opened
Slide 27: Develop effective sales and operations that meet customer demand
Results（Domestic AUTOBACS Business） 2.Develop effective sales and operations that meet customer demand Super AUTOBACS Toyama-minami Super AUTOBACS Morioka-minami Smart+１ Utsunomiya Store （Sep. 1, 2018 Reopen） （Oct. 19, 2018 Reopen） （Sep. 7, 2018 Open） 23
Slide 28: A PIT AUTOBACS SHINONOME
Results（Domestic AUTOBACS Business） New concept flagship store A PIT AUTOBACS SHINONOME （Nov. 23, 2018 Open） 24
Slide 29: Store Renovation
Results（Domestic AUTOBACS Business） Store Renovation FY March 2019 renovated：127 Stores Before After Improving the mobility around cash registers Changing the in-store placement of Improving the work space beside Expand JKM、GORDON MILLER products requiring customer service cash register Improvement
Slide 30: Inclusion of families and young customers
Results（Domestic AUTOBACS Business） 3.Inclusion of families and young customers - Using Customer Voice Program - Integration of T-Point - Renew AUTOBACS official Application - Problems remained in membership system review and optimal allocation of advertising expenses T-Point Card Online Booking Sof
Slide 31: HR Development and Strengthening the foundation
Results（Domestic AUTOBACS Business） 4.HR Development and activation - Training of mechanics and keeping them stay at AUTOBACS - Create a system to praise employees AUTOBACS GUYS 2018 AUTOBACS AWARD Employee Awards Party 5.Strengthening the foundation to raise attraction - Problems in reducing distri
Slide 32: Results (Domestic AUTOBACS Business)
Results（Domestic AUTOBACS Business） Sales, number of customers and unit price for （Sales: Million Yen/Number of customers: Hundred customers） all AUTOBACS stores （Unit price: Yen） 400,000 9,000 350,000 8,500 300,000 8,000 250,000 200,000 7,500 150,000 7,000 100,000 6,500 50,000 0 6,000 FY March 2015
Slide 33: Performance Results of Franchisees
Performance Results of Franchisees (Billion Yen) Ordinary Income of Franchise Companies (Preliminary) 8 Total of profit-making FCs Total of profit-making subsidiaries 6 Total of loss-making FCs 5.62 5.90 Total of loss-making subsidiaries 4 Combined ordinary income 2 1.63 0 -0.30 -2 -2.50 -4 FY March
Slide 34: Results (Overseas Business and Dealer, BtoB and Internet Business)
Results (Overseas Business and Dealer, BtoB and Internet Business) Overseas Business - Established a wholesale business model - Making close examination for retail business depending on which country it is PB items for overseas dealing business. Dealer Business - Despite expanding the number of stor
Slide 35: Results (Infrastructure maintenance, Asset control)
Results (Infrastructure maintenance, Asset control) Infrastructure maintenance - Reduced IT expenses - Performed head office personnel optimization and reassignment to profit-making business - Problem remains in reviewing IT, logistics assets and reducing consolidation expenses Asset control - Selli
Slide 36: Outline of the Five-year Rolling Plan 2019
Outline of the Five-year Rolling Plan 2019
Slide 37: Five-year Rolling Plan 2019
Five-year Rolling Plan 2019 ■Our mission We constantly create a new car lifestyle culture. ■What we aim to achieve in the Five-Year Rolling Plan We will establish and link the six networks to provide services suited to the scenarios in which customers use cars. 32
Slide 38: Six Networks
Six Networks AUTOBACS Chain Next- １）AUTOBACS chain network generation Pit Service maintenance Online ２）Overseas Alliance network Overseas Multi- Alliance dealer ３）Multi-dealer network ４）Pit service network to provide the best service ５）Maintenance network to adapt to next- generation technology ６）On
Slide 39: Structures and systems to support realization
Structures and systems to support realization １）Strengthening of the monitoring system ２）Change in the exective officer system ３）Change of evaluation axis of executive officers ４）Enhancement of project management ５）Keep creating a culture that encourages challenges 34
Slide 40: Financial Policies
Financial Policies Expanding our operating cash flow by promoting growth strategies and performing active business investments and sufficient shareholder returns 1) Our concept regarding business investment Making investments to establish six networks, which will lead to our medium- and long-term gr
Slide 41: How to Implement the Five-year Rolling Plan
How to Implement the Five-year Rolling Plan ■Period: Five years from the fiscal year ending March 31, 2020 to the fiscal year ending March 31, 2024 ■Implementation of review: Without sticking to the five-year period mentioned above, we will continuously review its direction and strategies for the fi
Slide 42: Targets for the Fiscal Year Ending March 31, 2020
Targets and Current Initiatives for the Fiscal Year Ending March 31, 2020 Numerical targets (consolidated) Net Sales 223.0BY Operating income 8.0BY Ordinary income 8.7BY Net income 5.8BY ROE 4.7％ 37
Slide 43: Current Initiatives for the Fiscal Year Ending March 31, 2020
Targets and Current Initiatives for the Fiscal Year Ending March 31, 2020 Focus on the activities for establishing and linking the six networks. Also proceed with the development of business foundations. - Improve the efficiency of the domestic AUTOBACS business resources - Expand retail earnings (S
Slide 44: AUTOBACS SEVEN VISION 2050
AUTOBACS SEVEN VISON 2050 Creating Our Future Together Professional & Friendly 39
Slide 45: APPENDIX
APPENDIX
Slide 46: Sales Trend: Retail & Wholesale
Sales Trend: Retail & Wholesale 【YoY change for the last 12 months】 20.0% Sales Wholesale Strong sales of winter products due to the 15.0% cold wave 9.0% 10.0% 9.5% 11.0% 5.7% 10.3% 3.4% 5.0% 2.5% 3.9% 2.1% 0.2% 3.4% 3.6% 0.0% 2.0% 2.6% -0.2% -4.6% 0.3% -2.9% -5.5% -5.0% -5.1% -5.6% -10.0% -9.0% Str
Slide 47: Automobile purchase and sales (1)
Automobile purchase and sales (1) Commercial flow of car purchase and BtoB sales (No. of cars denotes cumulative units for FY ended Mar 31, 2019) FC Headquarters Appraisal and purchase Sales by auction consigned to FC Used car dealers Headquarters Auto auctions 4,897 cars Customers 20,146 cars Inven
Slide 48: 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, 2019) New car dealers New car dealers Auto auctions Used car dealers Auto auctions Procurement Procurement FC Headquarters Customers Purchase & Wholesale Vehicles Inventories
Slide 49: 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) 40 700 660 646 648 35 650 633 31.0 32.0 29.8 29.6 604 30 600 27.1 550 25 500 20 450 15 400 10 350 5 300 0 FY Mar
Slide 50: Progress of New Store Openings (FY March 2018)
Progress of New Store Openings (FY March 2018) Domestic Store name Location(Prefecture) Owner of store Opening date 1 Smart+1 Utsunomiya Store Tochigi RC Sep. 7,2018 2 Super AUTOBACS Morioka Minami* Iwate RC Oct. 19, 2018 3 AUTOBACS Koga Store Ibaraki FC Oct. 25, 2018 4 AUTOBACS Shinonome Store* Hir
Slide 51: Quarterly P/L (FY March 2019)
Quarterly P/L (FY March 2019) (Billion Yen) FY March 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2018 Net sales 49.0 48.4 68.3 47.9 213.8 YoY -2.2% +0.3% +2.5% +1.6% +0.7% Gross profit 14.6 16.1 21.0 15.7 67.5 （% of Sales） (29.9%) (33.2%) (30.8%) (32.8%) (31.6%) YoY -5.2% -2.5% +1.7% +3.2% -0.6%
Slide 52: Balance Sheet: Assets
Balance Sheet: Assets Total Assets Total Assets 187.3 BY 181.3 BY (Billion Yen) 39.0 Cash and 30.6 Major items changed deposits Trade notes 23.6 and accounts receivable 25.1 Domestic AUTOBACS Merchandise Business :+1.3BY 16.4 19.6 Accounts Others :+1.8BY 21.9 receivable 22.6 10.6 Other current asset
Slide 53: Balance Sheets: Liabilities and Equity
Balance Sheets: Liabilities and Equity Total Liabilities & Equity 187.3 BY 181.3 BY (Billion Yen) Accounts payables Major items changed 20.7 Short-term 21.2 borrowings 3.2 2.4 12.6 Other short-term 2.1 liabilities 13.5 11.3 Long-tem 1.3 borrowings 11.4 Other long-term liabilities Total Dividends Pai
Slide 54: Store Openings and Closings
Store Openings and Closings (FY March 2018) No. of FY March 2019 No. of stores stores Domestic 1st Half 2nd Half at at March March stores 31, New S/B・ Close New S/B・ Close 31, R/L R/L 2018 2019 AUTOBACS 497 +1 -4 +1 +2/-2 -2 493 Super AUTOBACS 74 +2/-2 74 AUTOBACS Secohan Ichiba 8 -1 7 AUTOBACS EXPR
Slide 55: 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