Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — FY2023 Earnings Presentation
51 slides from Autobacs Seven's earnings presentation, May 11, 2023
Slide 1: Results for the year ended March 31, 2023
Results for the year ended March 31, 2023 AUTOBACS SEVEN CO., LTD. May 11, 2023
Slide 2: Contents
Contents Consolidated Results of FY March 2023 and Forecasts for FY March 2024 P. 02 １．Overview of Business Results P. 03 ２．Domestic AUTOBACS Business P. 07 ３．Overseas Business P. 9 ４．Car Dealership, BtoB and Online Alliance Business P. 11 ５．Forecasts for FY March 2024 P. 13 Initiatives in FY March
Slide 3: Consolidated Results of FY March 2023 and Forecasts for FY March 2024
Consolidated Results of FY March 2023 Forecasts for FY March 2024 Director & General Manager, Administration Tomoaki Ikeda 2
Slide 4: FY March 2023 Consolidated P/L
Overview of Business Results FY March 2023 Consolidated P/L Net sales and profits increased, despite the impact of reduction in new car production and surge in prices of crude oil and energy. FY March FY March 2023 2022 Change from （Billion Yen） Forecast Result forecast YoY Result Net sales 230.0 23
Slide 5: Key Points of Consolidated Financial Results
Overview of Business Results Key Points of Consolidated Financial Results 【Summary】 Domestic AUTOBACS Business performed solidly by capturing demand for maintenance parts for existing owned cars, although prices of some products were increased partly reflecting a surge in raw material prices. Overse
Slide 6: Key Points of Consolidated Financial Results
Overview of Business Results Key Points of Consolidated Financial Results 【Domestic AUTOBACS Business】 ✓ The Company revised tire prices twice in May and September. Even so, sales increased due to the rich product line-up and sales promotion. ✓ Although sales of car electronics and car interior good
Slide 7: Segment Information
Overview of Business Results Segment Information （Million Yen） FY March 2023 FY March 2022 YoY Summary Sales 183,107 178,274 +2.7% Demand for car electronics and car interior goods fell due to a decline in new car production. Tires remained Domestic Gross profit 61,189 60,343 +1.4% solid due to the
Slide 8: Retail Sales Including FCs: 281.3 billion yen (+4.2% YoY)
Domestic AUTOBACS Business Retail Sales in Total Domestic AUTOBACS Group Stores Retail Sales Including FCs: 281.3 billion yen (+4.2% YoY) （Billion yen） Result YoY 300 269.9 281.3 Automotive goods & services 216.3 BY +1.0% 250 38.4 BY +26.3% 200 Used car 216.3 purchase & sales 34,953 214.0 +17.2% car
Slide 9: Sales Variance by Merchandise
Domestic AUTOBACS Business Sales Variance by Merchandise Sales changes by merchandise category (YoY change in amount; total store basis) (Million yen) 5,000 4,394 4,000 3,000 Motor Sports Goods Maintenance Parts 2,213 Car Leisure Items Car Repair Goods Car electronics 2,000 Accessories 1,043 903 1,0
Slide 10: Overseas Business Sales and Operating Income Changes
Overseas Business Overseas Business Sales and Operating Income Changes Sales increased and operating loss decreased due to solid performance in both retail and wholesale, despite the impact of inflation. Sales（Billion yen） Operating income (Million yen) 15 0 Retail Wholesale Operating income -207 -1
Slide 11: Performance by Overseas Subsidiaries
Overseas Business Performance by Overseas Subsidiaries (Million yen) France Australia Singapore China Malaysia Number of stores 10 0 2 0 5 23/3 22/3 23/3 22/3 23/3 22/3 23/3 22/3 23/3 22/3 Period Full Full Full Full Full Full Full Full Full Full Year Year Year Year Year Year Year Year Year Year Sale
Slide 12: Car Dealership, BtoB and Online Alliance Business Sales and Operating Income Changes
Car Dealership, BtoB and Online Alliance Business Car Dealership, BtoB and Online Alliance Business Sales and Operating Income Changes The business returned to profitability due to increase in sales and efforts for efficient operations. Sales（Billion yen） Main factors: Operating income Operating inc
Slide 13: Car Dealership, BtoB and Online Alliance Business Overviews
Car Dealership, BtoB and Online Alliance Business Car Dealership, BtoB and Online Alliance Business Overviews Car Dealership Business ✓ Secured operating income exceeding YoY through efforts for efficient operations, despite the impact of a reduction of new car production attributable to the shortag
Slide 14: Forecasts for FY March 2024
Forecasts for FY March 2024 13
Slide 15: Assumption of Business Environment
Forecasts for FY March 2024 Assumption of Business Environment Positive factors ✓ Moderate recovery trend led by domestic demand against a backdrop of normalization of socioeconomic activities. ✓ Demand increase of car electronics and accessories reflecting the recovery of new car production. ✓ Dema
Slide 16: Forecast for Consolidated Result
Forecasts for FY March 2024 Forecast for Consolidated Result FY March FY March 2024 (Forecast) 2023 YoY （Billion Yen） Result 1st Half YoY 2nd Half YoY Full Year Up&Down YoY Net Sales 236.2 111.8 ＋4.4% 131.2 ＋1.6% 243.0 ＋6.7 ＋2.9% Gross Profit 79.4 38.1 ＋5.2% 44.0 ＋2.0% 82.2 ＋2.7 ＋3.4% Gross Profit 3
Slide 17: Forecast by Segment
Forecasts for FY March 2024 Forecast by Segment FY March FY March 2024 (Forecast) 2023 Result 1st Half 2nd Half Full Year YoY （Million Yen） Domestic Sales 183,107 83,890 100,440 184,330 +0.7% AUTOBACS Operating Business 19,689 7,420 12,280 19,700 +0.1% income Sales 13,531 7,820 7,520 15,340 +13.4% O
Slide 18: Dividends and Share Buyback
Forecasts for FY March 2024 Dividends and Share Buyback Dividends per Share Dividends and Share Buyback （Yen） （Billion yen） 80 1st Half 10 Amount of share buyback 2nd Half Dividends paid 8 60 6 3.00 30 30 30 40 4 20 4.73 4.67 4.67 30 30 30 2 0 0 FY March FY March FY March FY March FY March FY March
Slide 19: Capital Expenditures & Depreciation
Forecasts for FY March 2024 Capital Expenditures & Depreciation Capital Expenditures Depreciation （Billion yen） （Billion yen） 9 7 7.78 8 7.18 6 7 5.15 6.30 5 6 4.41 4.30 4.16 3.85 5 4 3.99 4 3.42 3 3 2 2 1 1 0 0 FY March FY March FY March FY March FY March FY March FY March FY March FY March FY Marc
Slide 20: Initiatives in FY March 2023 and Future Initiatives
Initiatives in FY March 2023 and Future Initiatives Representative Director & Chief Executive Officer Yugo Horii 19
Slide 21: Agenda
Agenda Agenda - Priority initiatives in FY March 2023 - Medium- to long-term growth strategies 社会の交通の安全と お客様の豊かな人生の実現 - Initiatives for ESG/SDGs - Targets for FY March 2024 20
Slide 22: Review of Priority Initiatives in FY March 2023
重点的な取組の Priority Initiatives in 振り返り FY March 2023 Review of Priority Initiatives in FY March 2023 １．Improve execution and increase speed ２．Strengthen initiatives for sustainable growth ３．Continue human resource development initiatives 21
Slide 23: Review of Priority Initiatives in FY March 2023
Priority Initiatives in FY March 2023 Review of Priority Initiatives in FY March 2023 １．Improve execution and increase speed △ - Managing and visualizing the entire company using ROIC - Optimizing management resources by reviewing and refining the business portfolio - Strengthening initiatives for s
Slide 24: Improve execution and increase speed
Priority Initiatives in FY March 2023 １． Improve execution and increase speed Managing and visualizing the entire company using ROIC ● Using ROIC to evaluate General Managers ● Visualizing ROIC on a General Manager basis ● Managing and visualizing the entire company using ROIC ● Enabling ROA by busi
Slide 25: Improve execution and increase speed: portfolio review
Review of priority initiatives １． Improve execution and increase speed Optimizing management resources by reviewing and refining the business portfolio ◼ Abolish officer system - Created value through organic connections between businesses - Fast and accurate decision-making - Shift to a system that
Slide 26: Improve execution and increase speed: strategic businesses
Priority Initiatives in FY March 2023 １． Improve execution and increase speed Strengthen initiatives in strategic businesses ■Concluded a dealership agreement with BYD Auto Japan Co., Ltd. December 2022 - Started test drives and pre-orders at two AUTOBACS stores in Tochigi before a dealership store
Slide 27: Strengthen initiatives for sustainable growth
Priority Initiatives in FY March 2023 ２．Strengthen initiatives for sustainable growth “Evolution as a Retailer” by integrating online and physical stores Accelerate integration of "online" and "offline" during the COVID-19 pandemic ◼ Store inventory allocation - If the store has a product purchased
Slide 28: Achieving CDE through digital ecosystem
Priority Initiatives in FY March 2023 ２．Strengthen initiatives for sustainable growth "Evolution from a Retailer" through DX by utilizing unique data Achieving “CDE” through digital ecosystem *CDE : Customer Deep Engagement A strategy to engage with customers more deeply, longer, and more directly ◼
Slide 29: Launched MOBILA
Priority Initiatives in FY March 2023 ２．Strengthen initiatives for sustainable growth "Evolution from a Retailer" through DX by utilizing unique data ◼ Launched “MOBILA” April 18, 2023 a general information website for car lifestyle ～Enable every driver and passenger to have excitement and a sense o
Slide 30: Initiatives to improve markup by streamlining logistics
Priority Initiatives in FY March 2023 ２．Strengthen initiatives for sustainable growth Initiatives to improve markup by streamlining logistics ◼ Initiatives to improve markup Improve mark-up Increase stores' profit - Streamlining logistics - Improved markup through negotiations with suppliers and cos
Slide 31: Continue human resource development initiatives
Priority Initiatives in FY March 2023 ３． Continue human resource development initiatives Continue human resource development initiatives ◼ Recruitment, development, and retention of vehicle mechanics - Held four short-term (for approx. one month) courses for Class 2 and Class 3 mechanics - Held a wo
Slide 32: Medium- to long-term growth strategies
Medium- to long-term growth strategies Medium- to long-term growth strategies ◼ Discuss mid- to long-term strategies at Board of Directors meeting ◼ Currently considering formulating a medium-term management plan with members in their 40s or younger, who will be responsible for the next generation o
Slide 33: Initiatives for ESG/SDGs
Initiatives for ESG/SDGs Initiatives for ESG/SDGs Our Sustainability Society we want to realize Our ideal company we want to be Safe, secure, and gentle society in which people, cars, and the Professional & Friendly environment exist in harmony Social issues that we should solve Materiality Creation
Slide 34: Initiatives for ESG/SDGs
Initiatives for ESG/SDGs Initiatives for ESG/SDGs ◼ Declaration for the AUTOBACS chain to prioritize the following three initiatives throughout the AUTOBACS chain - Reduction of CO2 emissions August 2022 - Initiatives for safety and security - Staff health ◼ Everyone in the AUTOBACS Group started SD
Slide 35: Initiatives for ESG/SDGs
Initiatives for ESG/SDGs Initiatives for ESG/SDGs Non-financial targets and KPIs to be addressed by the Company to achieve the four Materiality's Results of Goals for Non-financial targets Range KPI 2022 2030 Consolidated Selling products for preventing accidents 190,000/year 230,000/year Promoting
Slide 36: Targets for FY March 2024
Targets for FY March 2024 Targets for FY March 2024 【Numerical Targets (Consolidated)】 Sales 243.0 BY Operating income 12.3 BY Ordinary income 12.0 BY Profit attributable to owners of parent 7.4 BY ROE 5.8% 35
Slide 37: FY2023 New Management Structure
TOPICS FY2023 New Management Structure New management structure （effective June 2023） Aiming to increase speed of the Corporate AUTOBACS Business decision-making and the business Eastern Japan Sales Operations General Manager transformation, the Company Executive General Manager Chief AUTOBACS Chain
Slide 38: Initiatives of each business: EV promotion
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■Initiatives to promote EVs at A PIT AUTOBACS KYOTO SHIJO - Opened Tesla Express Service Center Kyoto January 2023 This is the Second Tesla Service Center in an AUTOBACS Group store. Signed a basic outsourcing contract with Tesla M
Slide 39: Dealership agreement with BYD Auto Japan
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■ Signed a dealership agreement with BYD Auto Japan Co., Ltd. - Signed a dealership agreement with BYD Auto Japan, an electric vehicle manufacturer, in December 2022. Started test drives and to take pre-orders of BYD ATTO 3, an e-S
Slide 40: Initiatives of each business: ALC Cloud and app
TOPICS Five-year Rolling Plan: APPENDIX ■Launch of a cloud-based service Efforts to create networks detecting drunkenness and ■New function “Machijikan alcohol consumption for Yoyaku” installed in AUTOBACS corporate use official app Online Network （October 2021） Automotive- related Goods （September
Slide 41: Item development with Nissan
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■Item development by collaboration with Nissan Motor Co., Ltd. Dedicated items for All-New Nissan Serena in addition to subcompact electric vehicle Nissan SAKURA - Developed two items, a dedicated interior panel and a dedicated int
Slide 42: Subcompact camper GMLVAN S-01
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■Announced subcompact camper GMLVAN S-01 under the label of GORDON MILLER MOTORS November 2022 - GORDON MILLER MOTORS, a label for original customized cars Two functional models of campers have been sold since 2019. The sales volum
Slide 43: ARTA MECHANICS VIGALE and concept store
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■Unveiling of VIGALE, the second customized car from ARTA MECHANICS January 2023 ■Concept store “ARTA MECHANICS & INSPIRATIONS” Grand opening in May 2023 - Aim to become an experiential facility where users can enjoy unusual experi
Slide 44: Climate Change
TOPICS Climate Change Positioning its response to climate change as an important management issue, the Company expressed its support for the TCFD recommendations in June 2022 The TCFD Disclosure Team responsible for analyzing scenarios has been established to engage in the task of identifying climat
Slide 45: Used Car Purchasing and Sales
Other Documents FY March 2023 Used Car Purchasing and Sales Total 34,953cars YoY +17.2％ BtoB Sales Retail Details No. of cars sold Details No. of cars sold Sales to 1,434 Used cars 6,324 Headquarters Sales to AA(Auto Auction) via 5,172 New cars 3,812 Headquarters Direct sales from 18,211 stores BtoB
Slide 46: Domestic Store Sales/Number of Purchasing Customers Changes
Other Documents Domestic Store Sales/Number of Purchasing Customers Changes [Same store basis (YoY)] Sales: +4.0% %, Number of purchasing customers: -3.1% Same store sales and number of purchasing customers at 10% domestic AUTOBACS-chain stores (YoY) Sales 0% -10% 10% Number of purchasing customers
Slide 47: Store Openings and Closings
Other Documents Store Openings and Closings FY March 2023 No. of No. of stores at 1st Half No. of 2nd Half stores at Domestic end of stores at end of March New S&B R/L Close end of Sep New S&B R/L Close March 2022 2022 2023 AUTOBACS 494 +１ 495 +2 +1/-1 -1 496 Super AUTOBACS 74 74 74 AUTOBACS Secohan
Slide 48: Balance Sheet: Assets
Other Documents Balance Sheet: Assets （Billion Yen） 189.9 BY 183.3 BY 183.1 BY 221.8 BY 194.3 BY Cash and 29.3 deposits Notes and 24.5 accounts 24.8 35.6 29.1 22.5 receivable - trade 26.1 25.8 22.9 24.2 26.1 Merchandise 21.5 23.8 Accounts 25.6 23.1 receivable - 33.9 25.7 19.3 27.1 other 16.7 9.9 10.
Slide 49: Balance Sheet: Liabilities and Equity
Other Documents Balance Sheet: Liabilities and Equity 189.9 BY 183.3 BY 183.1 BY 221.8 BY 194.3 BY （Billion Yen） Notes and 34.7 accounts payable - 7.1 17.6 17.7 trade 15.3 14.6 1.8 1.7 0.9 20.2 14.4 1.7 15.7 Short-term 12.1 12.6 borrowings 12.8 11.8 16.1 13.6 12.6 6.6 4.9 5.2 5.7 4.6 Accounts 15.3 1
Slide 50: Cash Flows
Other Documents Cash Flows Consolidated Cash Flows (Million yen) 15,000 10,687 10,000 5,000 0 -5,000 -3,495 -7,652 -10,000 Operating CF Investing CF Financing CF Breakdown of major investments Cash and cash equivalents End of March 2023 ：24.5BY - Investment on IT related End of March 2022 ：24.7BY -
Slide 51: 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