Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — FY March 2011 Earnings Presentation
38 slides from Autobacs Seven's earnings presentation, May 12, 2011
Slide 1: Results for FY March 2011 and Forecasts for FY March 2012
Translation ANALYST MEETING Results for FY March 2011 and Forecasts for FY March 2012 May 12, 2011 Setsuo Wakuda Representative Director and CEO
Slide 2: Contents
CONTENTS I. CONSOLIDATED FINANCIAL RESULTS FOR FY March 2011 II. FINANCIAL FORECASTS FOR FY March 2012 III. PROGRESS & UPDATES OF THE “AUTOBACS 2010 MEDIUM-TERM BUSINESS PLAN” 1
Slide 3: I. Consolidated Financial Results for FY March 2011
I. CONSOLIDATED FINANCIAL RESULTS FOR FY March 2011 2
Slide 4: Financial Results (FY March 2011)
FINANCIAL RESULTS (FY MARCH 2011) (billion yen) FY March 2011 FY March Latest Actual YoY change Actual vs. 2010 forecast result (ratio) forecast (ratio) Net sales 229.5 236.4 1.5% +3.0% 232.9 Gross margin 73.2 75.7 2.4% +3.5% 74.0 SG&A 62.6 63.8 -0.1% +1.8% 63.8 Operating income 10.6 12.0 17.9% +13.
Slide 5: Financial Results: Summary
FINANCIAL RESULTS: SUMMARY BOTH SALES AND PROFIT RISING: 1. Steady implementation of the budgetary plan • First half: Failed to reach targets for sales of Tires and ETC device, and gross margin ratio due to changes in gross profit mix • Second half: Effectively captured demand for tires, wheels, and
Slide 6: Retail Sales Trend (FY March 2011)
RETAIL SALES TREND (FY March 2011) Sales and number of purchasing customers (YoY change) （％） 15.0 ETC devices sales decline 10.0 Increased new car sales; discount expressway tolls; intense summer heat 6.2 5.0 3.7 2.3 0.4 3.3 -0.8 0.3 0.0 0.5 -0.6 1.7 0.0 -2.0 -1.9 -2.3 -1.6 -0.9 -1.7 -2.2 -3.2 -3.2
Slide 7: Domestic Retail Sales Including Franchisees
DOMESTIC RETAIL SALES INCLUDING FRANCHISEES* (Billion Yen) 350 Retail sales including FCs: 292.0 billion Yen 292.5 292.0 (down 0.2% YoY) 300 13.4 14.3 Statutory safety inspection: 14.3 billion Yen 12.7 14.4 (up 6.6%YoY) 250 Number of cars inspected： 497,211 cars (up 11.2% YoY) Number of fully certif
Slide 8: Sales Ups and Downs by Merchandise Category
SALES UPS AND DOWNS BY MERCHANDISE CATEGORY* (for 12 months ended March 31, 2011; YoY change in amount; total store basis) （Million Yen） 3,784 Car Electronics 3,000 Tire chains:+1500 MY Motor Sports 2,280 Accessories Car Leisure Car Repair Goods Goods 868 Items 1,000 539 400 Oil 2 Motorcycle Goods M
Slide 9: Financial Results (Second half of FY March 2011)
FINANCIAL RESULTS (Second half of FY March 2011) (Billion Yen) 1st half 2nd half 2nd half 2nd half results YoY change results YoY change Actual vs. (amount) (amount) latest forecast (4/1,2010 - (10/1,2010- 9/30,2010) 3/31,2011) forecast (amount) Net sales 115.0 +0.5 121.3 +2.9 114.5 +6.9 Gross margi
Slide 10: Major Drivers of Variance
MAJOR DRIVERS OF VARIANCE (Billion Yen) FY March 2011 FY Mar Results YoY 2010 Major drivers of variance (% of Sales) (% of Sales) (ratio) Net sales 236.4 +1.5% Non-consolidated sales: +3.8 232.9 Domestic store subsidiaries: +2.1 Overseas subsidiaries: +0.3 Gross margin 75.7 +2.4% Wholesale sales: +1
Slide 11: Performance of Company Segments
PERFORMANCE OF COMPANY SEGMENTS (billion yen) FY March FY March Latest Actual vs. YoY (%) 2011 2010 forecast forecast (%) Net Sales 194.7 190.9 2.0% 188.9 3.1% Non-consolidated Ordinary Income 11.7 10.5 11.5% 10.5 11.9% Domestic store Net Sales 81.2 79.1 2.7% 80.2 1.3% subsidiaries Ordinary Income (
Slide 12: Geographical Segments (Overseas)
GEOGRAPHICAL SEGMENTS (Overseas) FRANCE CHINA SINGAPORE THAILAND Number of stores at March 31, 2011 11 4 2 4 (including FCs) FY March 2011 comparable 7.6% 7.6% 15.0% -2.8% store sales YoY (%) (including FCs) FY March FY March FY March FY March FY March FY March FY March FY March 2011 2010 2011 2010
Slide 13: Store Openings and Closings
STORE OPENINGS AND CLOSINGS Domestic stores No. of FY March 2011 No. of stores at stores at Store Type March 31, 1st-half 2nd-half March 31, 2010 New S/B・R/L Close New S/B・R/L Close 2011 AUTOBACS 395 +8/-4 +4 +7/-6 404 Super AUTOBACS 77 -1 76 AUTO HELLOES 8 -2 -1 5 AUTOBACS Hashiriya 25 -1 -3 21 Ten
Slide 14: Earthquake Effect (Damage & Response)
EARTHQUAKE EFFECT (Damage & Response) Damage situation of the Great Eastern Japan Earthquake Immediately after the earthquake As of May 12, 2011 35 stores suspended their operation Two stores unable to restart operation Store (as of March 12, 2011) (AB Ishinomaki, AB Tagajo） Eastern Japan Logistics
Slide 15: Earthquake Effect (Effect on Earnings)
EARTHQUAKE EFFECT (Effect on Earnings) Effect on Earning results Amount effected Consolidated net sales -0.6 BY Gross margin -0.2 BY SG&A -0.29 BY 0.9 BY effect on Extraordinary losses -0.39 BY income before taxes Effect on SG&A and Extraordinary losses (in detail) (Million Yen) Merchandise Facility
Slide 16: II. Financial Forecasts for FY March 2012
II. FINANCIAL FORECASTS FOR FY March 2012 15
Slide 17: Financial Forecasts (FY March 2012)
FINANCIAL FORECASTS (FY March 2011) (Billion Yen) FY March 2012 (Forecasts) FY March 2011 Results YoY change 1st-half 2nd-half Full year (amount & rate) Net sales 236.3 114.1 119.1 233.2 -3.1 -1.3% Gross margin 75.7 36.1 38.8 74.9 -0.8 % to Net sales 32.0% 31.6% 32.6% 32.1% -1.1% SG&A 63.7 31.4 31.8
Slide 18: Factors That Could Affect the Operating Income
FACTORS THAT COULD AFFECT THE OPERATING INCOME (FY MARCH 2012) ① Decline in sales of snow related items as a result of less snowfall than FY March 2011 ② Sales growth from the accelerated store openings and reforms ③ Increased sales of tires, digital terrestrial broadcasting tuners and statutory saf
Slide 19: Factors That Could Affect the Operating Income (FY March 2012)
FACTORS THAT COULD AFFECT THE OPERATING INCOME ③Sales gain on (FY MARCH 2012) automotive goods, Damage 16,000 safety inspections; related to the （Million Yen） ①Less snow improved earthquake related procurement 14,000 +1,300 -900 demand ②Store reform -1,000 -700 +200 +300 12,000 ④Profit +500 improvem
Slide 20: Domestic Store Sales Assumption (FY March 2012)
DOMESTIC STORE SALES ASSUMPTION (FY MARCH 2012) Sales forecast（YoY change rate） First half Second half Full year Automotive goods -3.7% +1.2% -1.5% (excl. services) Services +5.8% +5.9% +5.9% Automobile purchase & sales +5.9% +7.7% +6.8% Same store sales -2.4% +0.2% -1.0% Total store sales -1.4% +1.
Slide 21: Domestic Sales Measures (FY March 2012)
DOMESTIC SALES MEASURES (FY MARCH 2012) Automotive goods sales: • Concentrate on tire sales, improve gross margin through tie-ups with manufactures • Secure merchandise related to digital terrestrial broadcasting and build its effective sales system Statutory safety inspections: • Promote safety ins
Slide 22: Forecasts at Parent & Subsidiary Level
FORECASTS AT PARENT & SUBSIDIARY LEVEL (FY March 2012) (Billion Yen) FY March FY March 2012（Forecasts） 2011 YoY change results 1st-half 2nd-half Full Year (amount) Non-consolidated Net sales 194.71 95.00 99.20 194.20 -0.51 Ordinary 11.74 5.50 6.50 12.00 +0.26 income Domestic store Net sales 81.20 38
Slide 23: Store Openings and Closings (FY March 2012)
STORE OPENINGS AND CLOSINGS (FY MARCH 2012 ) Domestic stores No. of FY March 2012 (Forecasts) No. of Store Type stores at 1st-half 2nd-half stores at Mar 31, Mar 31, 2011 New S/B・R/L Close New S/B・R/L Close 2012 AUTOBACS 404 +8 +5/-3 +23 +5/-3 439 Super AUTOBACS 76 76 AUTO HELLOES 5 -2 -2 1 AUTOBACS
Slide 24: Shareholder Return Policy
SHAREHOLDER RETURN POLICY （Billion Yen） 12.0 9.85 9.85 10.21 10.0 8.0 6.20 5.37 5.23 5.60 Share 6.0 buyback 3.87 2.46 4.0 0.05 Dividend 2.0 3.82 3.75 4.48 4.62 4.61 0.0 FY March 2008 FY March 2009 FY March 2010 FY March 2011 FY March 2012 (Forecast) Dividend per 100 Yen 100 Yen 125 Yen 135Yen 140 Ye
Slide 25: III. Progress & Updates of the Autobacs 2010 Medium-Term Business Plan
III. PROGRESS & UPDATES OF THE “AUTOBACS 2010 MEDIUM-TERM BUSINESS PLAN” 24
Slide 26: Progress of Medium-Term Business Plan
PROGRESS OF MEDIUM-TERM BUSINESS PLAN (FY March 2011) Measures Progress of individual measure 1. Improving store profitability 1)Store reform ○ Completed reforms at 141 stores 2)Merchandise/ Evaluation and selection of suppliers for strategic △ purchase reform partnership 3)Human resources/ Complete
Slide 27: Store Reform Results
STORE REFORM RESULTS Eleven months results (from Apr 2010 to Feb 2011) After-reform stores Stores before reform (73 stores*) (319 stores) Difference -Average YoY -YoY change rate- change rate- Retail sales 100.7％ 102.2％ +1.5pt Number of customers 99.9％ 98.9％ -1.0pt Number of items purchased from cen
Slide 28: Stores Opened After March 2011
STORES OPENED AFTER MARCH 2011 AUTOBACS Natori Store AUTOBACS Obama Store AUTOBACS Matsuyama Homen Store (Opened March 4, 2011) (Opened March 26, 2011) (Opened April 21, 2011) AUTOBACS Hakodate Nakamichi Store AUTOBACS Hakodate Hirono Store AUTOBACS Tokamachi Store (Opened March 31, 2011) (Opened Ma
Slide 29: Medium-Term Business Plan (FY Mar 2012 Measures)
MEDIUM-TERM BUSINESS PLAN (FY Mar 2012 Measures) Measures Plan 1. Improving store profitability Introduce to the remaining 220 stores; increase profit at 1) Store reform the after-reform stores 2) Merchandise/ Continue Selection of suppliers for strategic tie-ups purchase reform Complete training of
Slide 30: Toward the Goal of Medium-Term Business Plan
TOWARD THE GOAL OF MEDIUM-TERM BUSINESS PLAN (Billion Yen) Consolidated Operating Income and ROE 18.0 8.0% 16.0 16.0 11.7 7.0% 6.0% 14.0 12 5.0% 10.2 12.0 4.1% 4.0% 3.8% 10.0 2.0% 8.0 6.9 0.9% 6.0 5.1 0.0% 4.0 -2.0% 2.0 -2.1% 0.0 -4.0% FY March FY March FY March FY March FY March FY March 2008 2009
Slide 31: Summary of the Plan of FY March 2012
SUMMARY OF THE PLAN OF FY MARCH 2012 Positive Factor 31 new store openings 10 scrap & build, relocation stores 220 store reforms Profit improvement at overseas subsidiaries Negative Factor Decline in snow related sales in contrast to the brisk sales in FY March 2011; decline in sales due to the dama
Slide 32: Appendix
Jervca ta gy AUTOBACS APPENDIX 31
Slide 33: Performance Breakdown (FY Mar 2011 vs FY Mar 2010)
PERFORMANCE BREAKDOWN (FY Mar 2011 vs FY Mar 2010) Parental company (Non-consolidated) (Billion Yen) +5.02BY ↑Tires & wheels, car exterior items, new & used cars Net Sales Wholesale +2.8% ↓Car electronics devices, motorsports goods, etc 194.7BY YoY +3.78BY -1.02BY ↓Car electronics devices, second-ha
Slide 34: Decrease in Consolidation Adjustments
DECREASE IN CONSOLIDATION ADJUSTMENTS Consolidation Adjustments (Million Yen) FY March 2011 FY March 2010 Operating Income for segment total 12,196 10,781 Inventories -66 -83 (Unearned income of subsidiary inventories, etc.) Depreciation of Goodwill -152 -320 Allowance for point card -24 91 Eliminat
Slide 35: Balance Sheet / Assets
BALANCE SHEET / Assets TOTAL ASSETS 210.7 Billion Yen 207.8 Billion Yen Cash and deposits Major items changed 43.8 Trade notes 43.8 and account receivables Lease investment assets: -1.2BY 23.3 Lease 23.0 investment assets 14.6 13.4 Marketable 14.0 securities 13.3 Land： -1.0BY 16.7 Inventories 17.5 S
Slide 36: Balance Sheet / Liabilities & Net Assets
BALANCE SHEET / Liabilities & Net Assets TOTAL LIABILITIES AND NET ASSETS 210.7 Billion Yen 207.8 Billion Yen Major items changed Accounts payable ST borrowings: -1.7BY ST borrowings 15.8 and 15.3 4.9 corporate bond Accrued income taxes: +1.7BY 3.2 20.8 Other ST liabilities 22.2 Bonds and 8.4 LT deb
Slide 37: Performance Results of Franchisees
PERFORMANCE RESULTS OF FRANCHISEES Ordinary Income of Franchise Companies (Preliminary) (Billion Yen) 8.0 Total of profit-making FCs Total of loss-making FCs 6.0 Orginary income(net) 4.4 4.0 2.9 2.5 2.0 2.1 0.6 0.0 -2.0 FY March 2007 FY March 2008 FY March 2009 FY March 2010 FY March 2011 Notes) FY
Slide 38: 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