Autobacs Seven Co., Ltd. · TSE:9832

Autobacs Seven — Q3 FY March 2019 Earnings Presentation

22 slides from Autobacs Seven's earnings presentation, Jan 31, 2019

  1. Slide 1: Results for the Nine Months Ended December 31, 2018

    Translation Results for the Nine Months Ended December 31, 2018 January 31, 2019 AUTOBACS SEVEN CO., LTD.

  2. Slide 2: Q3 FY March 2019 Consolidated P/L

    Q3 FY March 2019 Consolidated P/L (Billion Yen) Nine months ended Nine months ended Dec. 31, 2018 Dec. 31, 2017 Actual % of YoY Actual YoY result Sales change result change Net sales 165.9 - +0.5% 165.1 +2.5% Gross profit 51.8 31.2% -1.7% 52.7 +1.7% SG&A 44.6 26.9% -0.2% 44.7 -0.9% Operating income

  3. Slide 3: Major Index of FY Q1～Q3 March 2019

    Major Index of FY Q1～Q3 March 2019 Consolidated Sales YoY +0.5% Total AUTOBACS stores retail sales YoY +1.1% Whole sales of non-consolidated company YoY +0.3 Gross Margin Q1～Q3 FY 2019 Q1～Q3 FY 2018 31.2% ← 31.9% SG&A YoY decreased 700 Million Yen Operating Income Q1～Q3 FY 2019 Q1～Q3 FY 2018 7.14 Bi

  4. Slide 4: Points for the 3rd Quarter of FY March 2019

    Points for the 3 rd Quarter of FY March 2019  Increase in sales of tire chains due to an increase in demand for snow tires caused by cold weather and the mandated use of tire chains on some roads. Continuance of strong dashcams sales.  Increase in earnings of domestic store subsidiaries thanks to

  5. Slide 5: Quarterly P/L

    Quarterly P/L (Billion Yen) FY March 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (Estimate-result) 2019 (Estimate) Net sales 49.0 48.4 68.3 49.0 215.0 YoY -2.2% +0.3% +2.5% +4.1% +1.3% Gross margin 14.6 16.1 21.0 16.9 68.8 (% of Sales) (29.9%) (33.2%) (30.8%) (34.5%) （32.0%) YoY -5.2% -2.5% +1.7

  6. Slide 6: Segment Information

    Segment Information (Billion Yen) Nine Nine months months YoY Summary ended Dec. ended Dec 31, 2018 31, 2017 Sales 140.32 141.93 -1.1% Although the retail business delivered strong performance, primarily thanks to Domestic Gross margin 42.76 44.44 -3.8% strong sales of winter goods, gross profit AUT

  7. Slide 7: Sales and profits of Reporting Segments

    Sales and profits of Reporting Segments Sales Segment profits (Million Yen) (Million Yen) 160,000 16,000 141,933140,328 13,207 140,000 14,000 12,317 12,000 120,000 Q1～Q3 10,000 March 100,000 8,000 2018 6,000 Q1～Q3 80,000 March 4,000 60,000 2019 2,000 345 296 40,000 22,275 -464 0 21,651 8,402 -599 -4

  8. Slide 8: 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 124,544 -489 40,488 -3,739 Gross 26,222 +139 17,034 -1,759 Margin(%) (21.1%) (+0.5pt) （42.1%) （-0.4pt） SG&A 20,206 +243 15,649 -1,684 Operating Income 6,015 -

  9. Slide 9: Retail Sales in Total AUTOBACS Group Stores

    Retail Sales in Total AUTOBACS Group Stores Retail Sales Including FCs: 203.4 billion yen (+1.1% YoY) (Billion Yen) 250 201.0 203.4 Second hand goods & Fuel: 4.0BY (+11.0% YoY） 3.6 4.0 200 14.1 Statutory safety inspection: 14.1BY (+2.5% YoY) 13.8 Number of cars inspected： 452,000 cars (-1.1% YoY) 20

  10. Slide 10: Performance by Overseas Subsidiaries (1)

    Performance by Overseas Subsidiaries (1) FRANCE THAILAND SINGAPORE Number of stores at Dec. 31, 2018 11 9 3 -including FC stores- Nine months Nine months Nine months Nine months Nine months Nine months Period FY March FY March FY March FY March FY March FY March 2019 2018 2019 2018 2019 2018 Net sal

  11. Slide 11: Performance by Overseas Subsidiaries (2)

    Performance by Overseas Subsidiaries (2) CHINA MALAYSIA AUSTRALIA Number of stores at Dec. 31, 2018 0 4 0 -including FC stores- Nine months Nine months Nine months Nine months Nine months Nine months Period FY March FY March FY March FY March FY March FY March 2019 2018 2019 2018 2019 2018 Net sales

  12. Slide 12: Store Openings and Closings (Plan)

    Store Openings and Closings (Plan) Domestic stores Fiscal year ending March 31, 2019 No. of No. of Q1～Q3 (results) No. of Q4 (Plan) stores as of stores as of stores as of March 31, March 31, New S/B・R/L Close Dec. 31, New S/B・R/L Close 2019 2018 2018 (Plan) AUTOBACS 497 +2 +2/▲2 ▲4 495 +1/▲1 ▲2 493

  13. Slide 13: Sales Trend: Retail & Wholesale

    Sales Trend: Retail & Wholesale 【YoY change for the last 12 months】 20.0% Strong sales of winter Sales Wholesale items due to 15.0% cold wave 11.0% 11.0% 10.3% 9.5% 10.0% 7.3% 5.7% 2.4% 5.0% 2.1% 3.4% 4.3% 0.2% 2.1% 2.5% 3.6% 0.0% 2.0% -0.2% -1.0% 0.3% -5.0% -2.9% -5.1% -5.6% -4.6% -9.0% -10.0% Decr

  14. Slide 14: Sales Variance by Merchandise (Q1～Q3 FY2019)

    Sales Variance by Merchandise (Q1～Q3 FY2019) 【Same store basis】 Sales: +1.1% YoY, Number of customers: -2.4% YoY Sales* changes by merchandise category (Million Yen） (YoY change in amount; total store basis) 1,400 Tire chain: +1,140 million Yen 1,172 1,200 1,002 Electronic devices installation servi

  15. Slide 15: Automobile purchase and sales (1)

    Automobile purchase and sales (1) Commercial flow of car purchase and B2B sales (No. of cars denotes cumulative units for the nine months ended Dec. 31, 2018) FC Headquarters Sales by auction Appraisal and purchase consigned to FC Headquarters Used car dealers 3,190 cars Auto auctions Customers 13,4

  16. Slide 16: Automobile purchase and sales (2)

    Automobile purchase and sales (2) Commercial flow of retail sales (No. of cars denotes cumulative units for the nine months ended Dec. 31, 2018) New car dealers Used car dealers New car dealers Auto auctions Auto auctions Procurement Procurement FC Headquarters Customers Purchase & Wholesale Invento

  17. Slide 17: Balance Sheet / Assets

    Balance Sheet / Assets 207.1BY 187.3BY 183.0BY 182.7BY 202.1BY (Billion Yen) Cash and deposits 35.2 30.4 Trade notes 39 and account 40.8 37.3 receivables 35.9 35 Lease investment 23.6 assets 8.1 26 26 7.1 Inventories 18.6 8.2 21.9 7.8 7.4 16.4 17.5 18.6 Other current assets 30.5 33 24.3 19.6 17.2 Ta

  18. Slide 18: Balance Sheet / Liabilities & Net Assets

    Balance Sheet / Liabilities & Net Assets 207.1BY 187.3BY 183.0BY 182.7BY 202.1BY (Billion Yen) Trade notes & 36.3 accounts payable 34.9 20.7 ST borrowings and 4.7 22.2 23.6 corporate bond 3.2 3.1 4.4 3.2 Other ST liabilities 23.8 22.4 24.8 17.7 17.3 Bonds and LT debts 2.2 2.1 2.0 1.3 1.3 10.8 11.3 1

  19. Slide 19: CAPEX and Depreciation

    CAPEX and Depreciation CAPEX Depreciation (Billion Yen) (Billion Yen) 7 6 6.12 5.89 6 5 4.57 4.42 4.81 4.84 4.46 4.16 4.03 5 4.0 4 3.84 4 3.34 4.13 3 （Q3） 3 2.77 （Q3） 2 2 1 1 0 0 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 （E） （E） 19

  20. Slide 20: 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 planning to share 10 buyback of maximum 60 2.8 million shares of 8 5,000 million yen in 50 February to June 20, 30 30 30 2.71 2019 40 6 0.00 30 4 2

  21. Slide 21: Implementation of Share Buyback

    Implementation of Share Buyback Purpose: To improve capital efficiency and strengthen shareholders’ return Number of acquired shares (max.): 2.8 million shares * Percentage of total issued shares (excluding treasury shares): 3.39％ Acquisition value (max.): 5,000 million yen Acquisition period: Febru

  22. Slide 22: 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

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