Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — H1 FY March 2019 Earnings Presentation
45 slides from Autobacs Seven's earnings presentation, Oct 31, 2018
Slide 1: Analyst Meeting: Results of the Six Months ended September 30, 2018
Translation Analyst Meeting Results of the Six Months ended September 30, 2018 October 31, 2018 AUTOBACS SEVEN CO., LTD.
Slide 2: Results of the Six Months and Forecasts for Second Half of FY March 2019
Results of the Six Months ended September 30, 2018 and Forecasts for Second Half of FY March 2019 Director, Senior Managing Executive Officer, Corporate Administration Isao Hirata
Slide 3: First Half of FY March 2019 Consolidated P/L
First Half of FY March 2019 Consolidated P/L (Billion Yen) Six months ended September 30, 2018 Six months ended Actual YoY change Change from September 30, Initial Forecast results ratio forecast 2017 Net sales 102.0 97.5 ▲1.0% ▲4.4 98.4 Gross margin 32.7 30.7 ▲3.8% ▲1.9 32.0 Gross margin ratio 32.1
Slide 4: Key Figures of First Half of FY March 2019
Key Figures of First Half of FY March 2019 Operating income YoY -710million Yen Domestic Autobacs Autobacs Seven YoY +0.3% ／ Wholesale -2.1% chain retail sales Consolidated sales YoY -1.0% ／ Gross margin -0.9% Extraordinary losses 960 million Yen 4
Slide 5: Extraordinary Income and Extraordinary Loss
Extraordinary Income and Extraordinary Loss Extraordinary income (Million Yen) Amount Insurance income 97 Insurance proceeds paid for damage related to Typhoon No. 21 and others Extraordinary loss (Million Yen) Amount Loss on 689 For repair of stores and facilities due to disaster Typhoon No. 21 and
Slide 6: Sales and profits of Reporting Segments
Sales and profits of Reporting Segments Sales Profits （Million Yen） （Million Yen） 100,000 8,000 83,323 5,775 H1 FY2018 81,021 6,000 5,394 80,000 H1 FY2019 4,000 60,000 2,000 281 255 40,000 0 -357 -374 -320 14,357 -786 20,000 13,743 -2,000 5,374 4,595 -2,997 1,164 1,120 -4,000 -3,133 0 Round down to
Slide 7: Segment Information
Segment Information (Million Yen) Six months Six months ended ended December December 30, YoY Summary 30, 2018 2017 Sales 80,021 83,323 ▲2.8% Retail sales were strong by covering the fall in demand Gross margin 25,063 26,626 ▲5.9% after the last-minute demand Domestic for tires in the previous year.
Slide 8: Retail Sales in Total AUTOBACS Group Stores
Retail Sales in Total AUTOBACS Group Stores Retail Sales Including FCs: 120.5 billion yen (+0.3% YoY) (Billion Yen) 140 120.1 120.5 Second hand goods & Fuel: 2.6BY (+15.1% YoY） 120 2.1 2.6 9.4 9.3 Statutory safety inspection: 9.3BY (-0.9% YoY) 100 13.4 13.3 Number of cars inspected： 299,000cars (-5.
Slide 9: Sales Trend: Retail & Wholesale (Oct. 2017 – Sep. 2018)
Sales Trend: Retail & Wholesale (Oct. 2017 – Sep. 2018) 【YoY change for the last 12 months】 20% Sales Wholesale 15% Strong sales of winter items due to the cold wave 11.0% 11.0% 10% 5.7% 5.8% 7.3% 5% 3.6% 4.3% 2.1% 3.4% 0.2% 2.4% -0.2% 0% 1.2% 2.5% 2.1% -1.0% -2.7% -2.4% -2.9% -5.6% -5% -5.9% -5.1%
Slide 10: Sales and Inventory of Domestic Stores (YoY)
Sales and Inventory of Domestic Stores (YoY) 4.0% 2.0% 2.10% 0.0% 0.20% -1.10% -2.0% -2.70% -3.16% -4.0% -6.0% -6.00% -7.10% -8.0% -10.0% -9.90% -12.0% FY March 2016 FY March 2017 FY March 2018 Six months ended YoY Sales YoY Inventory Sep. 2018 10
Slide 11: Sales Variance by Merchandise (H1 FY2019)
Sales Variance by Merchandise (H1 FY2019) 【Same store basis】 Sales: +0.2% YoY, Number of customers: -2.7% YoY Sales* changes by merchandise category (Million Yen） (YoY change in amount; total store basis) 1,200 1,106 1,000 Dash cam: 1,930 million Yen Reaction to strong sales inspired by the price in
Slide 12: Non-Consolidated and Domestic Store Subsidiaries
Non-Consolidated and Domestic Store Subsidiaries (H1 FY2019) (Million Yen) Non-consolidated Domestic Store Subsidiaries Results YoY Results YoY Net Sales 70,496 -1,723 24,345 -2,470 Gross 14,762 -437 10,409 -1,105 Margin(%) (20.9%) (-0.1pt) (42.8%) (-0.1%) SG&A 13,215 -181 10,244 -1,190 Operating In
Slide 13: Performance by Overseas Subsidiaries
Performance by Overseas Subsidiaries FRANCE THAILAND SINGAPORE CHINA MALAYSIA Number of stores at Sep. 30, 2018 11 13 3 0 4 -including FC stores- H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 Period FY2019 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 FY2018 Net sales (Million Yen) 4,172 3,507 223 174 623
Slide 14: CAPEX and Depreciation
CAPEX and Depreciation CAPEX Depreciation (Billion Yen) (Billion Yen) 7 6 6.12 5.89 6 5 4.57 4.00 4.42 4.81 4.84 4.16 4.03 5 4 3.84 3.93 4 3.58 3 3 2 2 1.96 1.82 1 1 （H1） （H1） 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） 14
Slide 15: Cash Flow
Cash Flow Consolidated Cash Flow (Million Yen) (First Half FY2019) 4,000 1,892 2,000 Cash and cash equivalents: 37.3Billion Yen 0 (Sep. 30, 2018) -272 36.9 Billion Yen -2,000 (Sep. 30, 2017) -4,000 -3,339 Operating CF Investment CF Financial CF Breakdown of investment items (including items other th
Slide 16: 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 30 30 30 2.71 40 6 0.00 0.00 30 4 20 30 30 30 2 4.95 4.95 4.95 10 0 0 FY March 2017 FY March 2018 FY March 2019 FY March 2017 FY March 2
Slide 17: Estimates of FY March 2019
Estimates of FY March 2019 The results for the first half were behind the internal plan in terms of progress; however, the full-year earnings forecasts are unchanged. (Billion Yen) H1 H2 Full Year Results Forecasts YoY Forecasts YoY Consolidated Sales 97.5 117.4 +3.2% 215.0 +1.3% Gross Margin 30.7 3
Slide 18: Assumptions for the business environment for the second half
Assumptions for the business environment for the second half Business environment - Increase in demand for winter tires and automotive goods and services due to strong sales of new vehicles - Continued strong sales of event data recorders - Recovery of the number of vehicles subject to statutory saf
Slide 19: Progress of Med-term Business Plan and Initiatives for the Second Half FY March 2019
Progress of Med-term Business Plan and Initiatives for the Second Half FY March 2019 CEO, President Kiomi Kobayashi
Slide 20: Review of the First Half FY March 2019
Review of the First Half FY March 2019 Review Domestic AUTOBACS - Demand for dashcams and batteries increased and the store sales exceeded the results of the previous fiscal year. Business - Development of new products advanced. On the other hand, with respect to the wholesale to stores, structural
Slide 21: Value (Merchandise) Provided to Customers by AUTOBACS
Value (Merchandise) Provided to Customers by AUTOBACS “Self-expression” Motor sports goods, garage goods, ARTA-related products, etc. Demand for greater enjoyment of “Safety and driving “Value of Security” Experience” Tires, statutory Demand for Demand for Lifestyle-related inspections, comfortable
Slide 22: Domestic AUTOBACS Business: Strengthening of tire sales
Domestic AUTOBACS Business Safety and Strengthening of tire sales security [Initiatives taken] - Increase of line-ups of low-priced items and tires for all seasons - Start of supply of winter tires already incorporated (100,000 tires) - Introduction of online reservations for tire replacement (about
Slide 23: Domestic AUTOBACS Business: Statutory safety inspection services
Domestic AUTOBACS Business Safety and Sales expansion of statutory safety inspection security services [Initiatives taken] - 15-minute acceptance inspection and store operation improvement Introduced at about 260 stores (to be introduced at about 130 stores in the second half of FY March 2019) - Pro
Slide 24: Domestic AUTOBACS Business: Lifestyle goods (JKM)
Domestic AUTOBACS Business Value of Offering of lifestyle goods (outdoor/indoor goods for experience vehicles) [Initiatives] - Expansion of the sales floor of JKM (about 230 stores) Sales of stores and online shopping grew at the rate of 168.6% for the first half of FY March 2019 (as compared to the
Slide 25: Domestic AUTOBACS Business: Lifestyle goods (GORDON MILLER)
Domestic AUTOBACS Business Self-expression Offering of lifestyle goods (garage goods) [Initiatives] - Expansion of the sales floor of GORDON MILLER (about 140 stores) Sales of stores and online shopping grew at the rate of 268.7% for the first half of FY March 2019 (as compared to the second half of
Slide 26: Domestic AUTOBACS Business: Store Renovation
Domestic AUTOBACS Business: Store Renovation Number of renovated stores in the first half of FY March 2019: 52 stores Before change After change Improved visibility from the checkout counter Change of the layout of goods Giving the waiting area Offering JKM/GORDON MILLER that require customer servic
Slide 27: Domestic AUTOBACS Business: Store Development, Flagship store
Domestic AUTOBACS Business: Store Development Flagship store under the new concept A PIT AUTOBACS SHINONOME （Open on November 2018） - Renovation of Super AUTOBACS TOKYO BAY SHINONOME - New AUTOBACS that provides new value relating to automobiles to all drivers centered around “PIT” 27
Slide 28: Domestic AUTOBACS Business: Store Development
Domestic AUTOBACS Business Store Development SUPER AUTOBACS MORIOKA-MINAMI （Renewal opened on October 19, 2018） Smart+１ UTSUNOMIYA Store（Opened on September 7, 2018 ） 28
Slide 29: Domestic AUTOBACS Business: JACK & MARIE
Domestic AUTOBACS Business: JACK & MARIE Lifestyle shop through automobiles ■ Promotion of opening of stores Second store: LaLaport NAGOYA minato AQULS (opened on September 28, 2018) JACK ＆ MARIE Third store: Yokohama Landmark Plaza LaLaport NAGOYA minato AQULS (to be opened on November 3, 2018) Fou
Slide 30: Overseas Business
Overseas Business ■Wholesale private brand products for overseas through local partners ■ Introduction of goods through proposals for the sales floor to the local hypermarkets （Singapore, Indonesia and Malaysia） Example of sales floor where goods are Example of sales floor (Indonesia) offered (Singa
Slide 31: Overseas Business: AudioXtra acquisition, JD Worldwide
Overseas Business Acquisition of the shares of AudioXtra Pty Limited of Australia - Acquisition of AudioXtra (engaging in wholesale of radio equipment for vehicles and ships and manufacturing and sales of automotive electronics equipment) to make it a subsidiary - To engage in the wholesale business
Slide 32: Car Dealer Business
Car Dealer Business ■Increase the number of BMW dealer store Ogikubo BMW（Operation started in August 2018) Tochigi BMW Utsunomiya Head Store Ogikubo BMW Ikebukuro BMW Nerima BMW The number of BMW authorized dealers operated by AUTOBACS Group totaled 10 32
Slide 33: BtoB Business
BtoB Business ■ Consolidation of the businesses of the two existing subsidiaries toward future business expansion PALSTAR K.K. Cores International, Inc. (Wholesale of oil and car (Wholesale of car goods) goods) CAP Style Co., Ltd. Establishment: July 2018 To start under the new organizational struct
Slide 34: Internet Business
Internet Business 1. Improvement of the existing e-commerce site - Consolidation of the external malls => Consolidation into the Company’s own site and Yahoo! shopping site - Improvement of the Company’s own site => Strengthening of the functions for goods searches and renovation of the pages for ti
Slide 35: Initiatives for the Second Half Period of FY March 2019
Initiatives for the Second Half Period of FY March 2019 Initiatives for earnings increase in the near future - Sales/profit expansion with sales expansion of tires/statutory safety inspection service - Promotion of store renovation (about 100 stores are to be renovated in the second half.) - Focus o
Slide 36: Management Targets (FY March 2020)
Management Targets (FY March 2020) Consolidated Operating Income 12 Billion Yen Consolidated ROE 7％ ROE Image of Consolidated (Billion Yen) Operating Income and ROE Operating 20 7% 8.0% Income 6.0% 4.3% 10 12 BY 4.0% 2.3% 9 BY 7.2 BY 2.0% 5.8 BY 0 0.0% FY March FY March FY March FY March 2017 2018 2
Slide 37: Create Future Together 2050 Professional and Friendly
AUTOBACS SEVEN VISON Create Future Together 2050 Professional and Friendly 37
Slide 38: Appendix
Appendix
Slide 39: Performance Results of Franchisees
Performance Results of Franchisees Ordinary Income of Franchise Companies (Preliminary) (Billion Yen) 6.0 5.62 4.0 2.0 1.63 0.18 -0.3 -0.16 0.0 -2.0 -2.5 -2.74 -3.13 -4.0 -6.0 -5.89 -8.0 FY March 2015 FY March 2016 FY March 2017 FY March 2018 FY March 2019 Total of profit-making FCs Total of profit-
Slide 40: Balance Sheets / Assets
Balance Sheets / Assets Total Assets Total Assets 187.3 Billion 182.7 Billion Yen Yen 39.0 Cash and 37.3 deposit Notes and accounts 23.6 receivable 26.0 16.4 Inventory 18.6 Other accounts 21.9 receivable 16.6 Other 10.6 current assets 10.3 Property, plant, 41.2 and equipment 40.1 Intangible 6.0 asse
Slide 41: Balance Sheets / Liabilities and Net assets
Balance Sheets / Liabilities and Net assets Liabilities and Liabilities and net assets net assets 187.3 182.7 billion Yen billion Yen Notes and accounts payable 20.7 Short-term loans payable 23.6 3.2 Accounts payable - 12.6 other 3.2 9.8 Other current 10.6 2.1 liabilities 6.8 1.3 11.3 Long-term 11.1
Slide 42: 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 six months ended Sep. 30, 2018) FC Headquarters Sales by auction Appraisal and purchase consigned to FC Headquarters Used car dealers 1,875 cars Auto auctions 8,646 cars Cust
Slide 43: Automobile purchase and sales (2)
Automobile purchase and sales (2) Commercial flow of retail sales (No. of cars denotes cumulative units for the six months ended Sep. 30, 2018) New car dealers Used car dealers New car dealers Auto auctions Auto auctions Procurement Procurement FC Headquarters Customers Purchase & Wholesale Inventor
Slide 44: Store Openings and Closings (Plan)
Store Openings and Closings (Plan) Domestic stores Fiscal year ending March 31, 2019 No. of No. of H1 (results) No. of H2 (Plan) stores as of stores as of stores as of March 31, March 31, New S/B・R/L Close Sep. 30, New S/B・R/L Close 2019 2018 2018 (Plan) AUTOBACS 497 +1 －4 494 +1 +3/-3 495 Super AUT
Slide 45: 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
Autobacs Seven — H1 FY March 2019 Earnings Presentation on 6ix