Slide 1: Fiscal 2019 Financial Results Presentation
Financial Results Presentation Fiscal 2019 Financial Results Presentation January 8, 2020 NEXTAGE Co., Ltd. (3186)
Slide 2: Contents
Contents 1. Results Overview and Fiscal 2019 Topics 2. Fiscal 2020 Outlook 3. NEXTAGE’s Business Model 4. Reference Information 2
Slide 3: Fiscal 2019 Results
Fiscal 2019 Results Performance highlights (December 2018 to November 2019) (YoY: +34.4%) Consolidated net sales ¥219,263 million (Achievement of full fiscal year target: 102.0%) Consolidated operating (YoY: +38.8%) ¥6,085 million (Achievement of full fiscal income year target: 98.1%) (YoY: +40.7%)
Slide 4: Overview of the Fiscal 2019 Results
Overview of the Fiscal 2019 Results Key Points of Financial Results · Net sales: Up 34.4% YoY with the full contribution of quasi-existing dealerships opened last year and new store openings · Gross profit margin: 17.3% (up 0.6% YoY) due to the expansion of purchasing business and the accumulation o
Slide 5: Market Environment in Fiscal 2019
Market Environment in Fiscal 2019 ■ Domestic used car registrations [Ordinary passenger cars and Kei (light) cars] Japan Automobile Dealers Association Japan Light Motor Vehicle and Motorcycle Association (Ordinary passenger cars) (Kei (light) cars) 450,000 450,000 400,000 400,000 350,000 350,000 30
Slide 6: Sales in Fiscal 2019
Sales in Fiscal 2019 9,000 8,737 ■ Monthly retail car sales volume and YoY comparison 8,000 7,618 7,547 7,162 7,000 6,660 6,375 5,936 5,824 6,000 5,549 5,806 5,357 5,000 5,654 5,378 5,306 5,291 5,117 4,037 4,902 4,000 4,495 4,586 4,602 4,557 4,269 3,000 Retail car sales volume increased by 31.9% yea
Slide 7: The Three Arrows (Sales, Purchasing, and Maintenance), plus Net Premiums Written
The Three Arrows (Sales, Purchasing, and Maintenance), plus Net Premiums Written Retail car sales (December 2018 to November 2019) ◎ 76,153 vehicles (YoY: +31.9%) Vehicle purchases (December 2018 to November 2019) ◎ 37,669 vehicles (YoY: +42.7%) Vehicle safety inspections (December 2018 to November
Slide 8: Fiscal 2019 Store Opening Results
Fiscal 2019 Store Opening Results End of Fiscal Beginning of Q1 Q2 Q3 Q4 Change in Fiscal 2019 Fiscal 2019 (Results) (Results) (Results) (Results) 2019 (Results) Medium-sized 18 Integrations −2 1 17 −1 dealerships storefronts Format changes storefronts storefront storefronts storefront (Japanese car
Slide 9: Trend in Operating Results
Trend in Operating Results Net sales and car sales volume Operating income and operating margin (Millions of yen) (vehicles) (Millions of yen) Net sales Car sales volume Operating income Operating margin 250,000 160,000 7,000 3.5% 136,783 140,000 2.9% 6,000 6,085 3.0% 219,263 2.7% 2.8% 200,000 120,0
Slide 10: Contributing Factors to the Increase in Operating Income
Contributing Factors to the Increase in Operating Income (Millions of yen) Hired 562 new graduates 16,000 Car sales volume increased by 30.8% 14,000 Opened 20 new locations -3,126 (26 new stores) 12,000 -2,761 10,000 +10,713 -1,137 8,000 -928 -607 6,000 -453 4,000 6,085 2,000 4,384 0 Fiscal 2018 Cha
Slide 11: New Store Openings
New Store Openings Change in number of stores and locations Change in number of locations by category 2% 8% 14% No. of locations No. of stores 140 21% 130 100% 90% 65% 120 60 Standalone vehicle purchasing store 57 104 New vehicle dealership 100 Dealerships 49 87 50 46 45 42 80 74 40 67 63 60 56 51 3
Slide 12: New Openings (General Store)
New Openings (General Store) Saturday, September 14, 2019 NEXTAGE Niigata-Higashi Grand opening! The second general store in Niigata Prefecture ◇8 maintenance pits and inspection line 12
Slide 13: Contents
Contents 1. Results Overview and Fiscal 2019 Topics 2. Fiscal 2020 Outlook 3. NEXTAGE’s Business Model 4. Reference Information 13
Slide 14: Consolidated Operating Results Forecasts for Fiscal 2020
Consolidated Operating Results Forecasts for Fiscal 2020 Percent of Full-year plan YoY (Millions of yen) net sales Net sales 270,000 123.1% 100.0% Operating income 7,800 128.2% 2.9% Ordinary income 7,500 127.4% 2.8% Profit attributable to owners of parent 5,300 124.5% 2.0% 100,000 Retail car sales v
Slide 15: Fiscal 2020 Store Opening Plan
Fiscal 2020 Store Opening Plan End of Format End of changes Q1 Q2 Q3 Q4 Change in Fiscal Beginning of Fiscal 2020 Fiscal 2020 (Plan) (Plan) (Plan) (Plan) (Plan) 2019 Fiscal 2020 Medium-sized Integrations 17 16 −1 15 −1 dealerships Format Storefronts storefronts storefront storefronts storefront (Jap
Slide 16: Basis of Earnings Forecasts
Basis of Earnings Forecasts Net sales Operating income (Millions of yen) (Millions of yen) 300,000 18,000 +3,098 16,000 +11,050 -3,085 250,000 +36,589 14,000 -2,607 200,000 12,000 +10,856 -850 10,000 -1,018 150,000 -174 -1,407 270,000 8,000 219,263 100,000 6,000 4,000 7,800 50,000 6,085 2,000 0 0 Fi
Slide 17: Contents
Contents 1. Results Overview and Fiscal 2019 Topics 2. Fiscal 2020 Outlook 3. NEXTAGE’s Business Model 4. Reference Information 17
Slide 18: Business Model
Business Model Consolidated operating results Net sales ¥219.2 billion Operating income ¥6 billion Ordinary income ¥5.8 billion Car sale Expand lifelong customer relationships Lifelong customer relationships [Flow-type business] by increasing car sales volume [Stock-type business] Insurance Net sale
Slide 19: Market Size of Car Industry
Market Size of Car Industry Retail used car Trade-in and New import vehicle Maintenance market market purchasing used car market market Approx. Approx. Approx. ¥5.4 trillion Approx. ¥2.7 trillion ¥2.0 trillion (Vehicle safety ¥1.5 trillion (Approx. 2.6 million (Approx. 4.0 million inspection: Approx
Slide 20: Trend of Oligopolization by Major Players
Trend of Oligopolization by Major Players —Case Study of Home Appliance Industry— Current share in home appliance Changes in share by channel in home appliance industry industry (Fiscal 2018) Home appliances/PC chain store Large-sized camera store Regional home appliances store Other Company A Compa
Slide 21: Demand Environment of Car Industry
Demand Environment of Car Industry Car registrations Number of cars owned per household by prefecture (2015–2019) (vehicles) No. of cars owned by households No. of cars owned per household (vehicles) (vehicles) 2015 平成27年 2016 平成28年 2017 平成29年 2018 平成30年 2019 平成31年 1.2 7,000 2 1.8 6,000 1.0 1.6 5,00
Slide 22: Enhancing Authorized Imported Car Dealership Business
Enhancing Authorized Imported Car Dealership Business Change in imported vehicle registrations in Japan (passenger cars) Lineup to satisfy all kinds of customer needs (vehicles) 350,000 Want to buy a luxury car Want to drive an imported car 308,389 305,043 288,830 294,060 300,000 284,471 278,846 250
Slide 23: Car Replacement Cycle is Getting Longer
Car Replacement Cycle is Getting Longer Passenger car (new car) replacement cycle Car replacement cycle: 5.5 years (household with two or more persons, in years) 1993 Purchase Replacement 10.0 9.3 9.2 9.0 8.7 9.0 8.1 Uncertainty in Fewer 8.1 7.8 economic 7.9 7.7 breakdowns 7.3 8.0 7.0 outlook 7.4 7.
Slide 24: Expand Customer Base to Generate Lifelong Customer Relationships
Expand Customer Base to Generate Lifelong Customer Relationships Measures to increase customers (active users) Expand the customer • Increase customers through ongoing aggressive Enhancement of the base to generate lifelong Mechanism to ensure new store openings service lineup and inspection bas
Slide 25: Number of Active Users
Number of Active Users Vehicle transactions involving an entire household start from one customer. Vehicle Purchase Insurance Inspection Accident Safety Inspection Customer Vehicle Safety Used Car Replacement Insurance Inspection Purchase Wife Vehicle Insurance Safety Used Car Replacement Inspection
Slide 26: Lifetime Value
Lifetime Value Transactions occur at the time of replacement. Opportunities: Once every 10 years or so Transactions occur in accordance with Purchase lifestyle. Opportunities: Once every 10 years or so Car sale Vehicle Safety Inspection Transactions occur based on Accessories mandatory inspections.
Slide 27: Human Resource Development Based on Growing Together Philosophy
Human Resource Development Based on “Growing Together” or Kyoiku Philosophy Number of new graduates to be hired in Fiscal 2020 Plan to continue to hire about 500 new graduates (Fiscal 2019: 562) We practice effective training methods through developing a training system, improving the environment, a
Slide 28: Processes Management Using Educational Tools
Processes Management Using Educational Tools NEXTAGE’s unique educational tools ■N-BOOK A comprehensive manual readily available to all employees. It incorporates the opinions of on-site workers. It is a “live” manual that is updated regularly. It is designed to standardize employees’ activities inc
Slide 29: Educational Environment
Educational Environment Provide training based on the career stage of each employee We offer a wide range of training programs to new graduates and mid-career workers alike, giving them opportunities to grow, regardless of their career stage. Our programs incorporate different styles including lectu
Slide 30: Contents
Contents 1. Results Overview and Fiscal 2019 Topics 2. Fiscal 2020 Outlook 3. NEXTAGE’s Business Model 4. Reference Information 30
Slide 31: Reference Information
Reference Information YoY comparison on existing-store basis (quarterly) (¥ million, %) YoY comparison on existing-store basis (quarterly) (¥ million, %) Net sales Q1 Q2 Q3 Q4 Operating income Q1 Q2 Q3 Q4 FY2014 11,623 10,779 10,423 13,180 FY2014 624 552 321 782 Fiscal 2015 FY2015 12,439 11,297 10,6
Slide 32: Reference Information
Reference Information New store openings (¥ million, %) New store openings (¥ million, %) Net sales Q1 Q2 Q3 Q4 Operating income Q1 Q2 Q3 Q4 Quarter 2,411 2,511 2,287 4,094 Quarter 16 98 -9 227 Fiscal 2015 Cumulative 2,411 4,968 5,775 7,763 Fiscal 2015 Cumulative 16 118 43 135 YoY 78.0% 77.4% 97.1%
Slide 33: Reference Information
Reference Information Car sales-related (¥ million, %) Maintenance-related (¥ million, %) Net sales Q1 Q2 Q3 Q4 Total Net sales Q1 Q2 Q3 Q4 Total (1) Fiscal 2014 11,123 10,263 9,765 12,404 43,556 (1) Fiscal 2014 163 189 195 221 769 (2) Fiscal 2015 13,506 12,678 11,773 14,961 52,920 (2) Fiscal 2015 2
Slide 34: Reference Information
Reference Information (¥ thousand) Consolidated Q1 Q2 Q3 Q4 Full year statements of income Fiscal 2017 Fiscal 2018 YoY Fiscal 2017 Fiscal 2018 YoY Fiscal 2017 Fiscal 2018 YoY Fiscal 2017 Fiscal 2018 YoY Fiscal 2017 Fiscal 2018 YoY Net sales 27,092,501 34,559,861 27.6% 30,472,194 41,081,383 34.8% 30,
Slide 35: Notices
Notices Start of the distribution of the IR E-magazine The Company will distribute in a timely manner a variety of IR information to those people who register their email addresses on the Company website for its IR E-magazine. This initiative is intended to help people to understand the Company bett
Slide 36: Company Overview
Company Overview ･ Company name NEXTAGE Co., Ltd. ･ Address 14F, Meiji-Yasuda Life Insurance Nagoya Building, 1-1, Shinsakaemachi, Naka Ward, Nagoya, Aichi Prefecture, 460-0004, Japan ･ Businesses Sales of new and used vehicles, automobile maintenance, purchases of used vehicles and an insurance age