Nextage Co., Ltd. · TSE:3186
Nextage — Q2 FY2020 Earnings Presentation
30 slides from Nextage's earnings presentation, Jul 6, 2020
Slide 1: Fiscal 2020 2nd Quarter Financial Results Presentation
Financial Results Presentation Fiscal 2020 2nd Quarter Financial Results Presentation July 6, 2020 NEXTAGE Co., Ltd. (3186)
Slide 2: Contents
Contents 1. Results Overview 2. H2 Fiscal 2020 Initiatives 3. Reference Information 2
Slide 3: Fiscal 2020 Results (Q2)
Fiscal 2020 Results (Q2) Performance highlights (December 2019 to May 2020) (YoY: +10.5%) Consolidated net sales ¥115,791 million (Achievement of full fiscal year target: 47.3%) (YoY: −94.6%) Consolidated operating income ¥177 million (Achievement of full fiscal year target: 5.9%) (YoY: —) Con
Slide 4: Overview of the Fiscal 2020 Results (Q2)
Overview of the Fiscal 2020 Results (Q2) Key Points of Financial Results · Net sales: Up 10.5% YoY with new store openings · Gross profit margin: Customer traffic declined as the market demand weakened due to COVID-19 ⇒Release of slow-moving inventory continued in March and April, representing 16.0%
Slide 5: Market Environment in Fiscal 2020
Market Environment in Fiscal 2020 ■ Domestic used car registrations [Ordinary passenger cars and Kei (light) cars] Japan Automobile Dealers Association Japan Light Motor Vehicle and Motorcycle 430,000 (Ordinary passenger cars) 430,000 Association (Kei (light) cars) 380,000 380,000 330,000 330,000 28
Slide 6: Market Environment in Fiscal 2020
Market Environment in Fiscal 2020 ■ Domestic new 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) 400,000 240,000 350,000 220,000 200,000 300,000 180
Slide 7: Sales in Fiscal 2020
Sales in Fiscal 2020 10,000 ■ Monthly retail car sales volume and YoY comparison 9,113 9,000 8,482 8,737 8,000 7,618 7,547 6,931 7,000 7,162 6,375 6,000 6,660 5,549 5,824 5,936 5,233 5,806 4,902 5,000 4,574 5,267 4,000 Retail car sales volume increased by 7.1% year on 4,037 year due to new store ope
Slide 8: Customer Traffic in Fiscal 2020
Customer Traffic in Fiscal 2020 ■ YoY change in customer traffic at existing stores 125% (Dealerships and vehicle purchasing stores) SOE was lifted nationwide A state of emergency (SOE) was declared SOE was SOE was for 7 prefectures expanded partially lifted 101% nationwide 100% 75% 75% 76% 64% 50%
Slide 9: 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 2019 to May 2020) ◎ 39,600 vehicles (YoY: +7.1%) Vehicle purchases (December 2019 to May 2020) ◎ 22,389 vehicles (YoY: +31.8%) Vehicle safety inspections (December 2019 to May 2020) ◎ 28,581 v
Slide 10: Fiscal 2020 Store Opening Results (Q2)
Fiscal 2020 Store Opening Results (Q2) End of Fiscal Beginning of Q1 Q2 Q3 Q4 2020 Change in Fiscal 2020 (Results) (Results) (Plan) (Plan) Fiscal 2020 (Plan) Medium-sized Integrations 16 −1 15 −1 dealerships Format storefronts storefront storefronts storefront (Japanese cars) changes 22 New store 3
Slide 11: Performance Analysis (Deviations from Q2 Plan)
Performance Analysis (Deviations from Q2 Plan) Consolidated Q2 plan Percent of Percent of Q2 Results vs. Q2 plan (Millions of yen) (unrevised) net sales net sales Net sales 124,000 100.0% 115,791 100.0% 93.4% Gross profit 20,633 16.6% 18,565 16.0% 90.0% Selling, general and administrative 19,783 16.
Slide 12: New Store Openings
New Store Openings Change in number of stores and locations Change in number of locations by category 160 Standalone vehicle purchasing store No. of locations No. of stores 145 New vehicle dealership 140 130 Dealership 120 70 65 104 98 60 57 100 87 49 50 45 46 80 74 42 67 40 63 60 56 51 30 47 42 22
Slide 13: New Openings (General Store) NEXTAGE Oyama
New Openings (General Store) NEXTAGE Oyama Newly opened in April 2020! The second general store in Tochigi Prefecture Two stores working together to expand the trading area 13
Slide 14: New Openings (General Store) NEXTAGE Settsu
New Openings (General Store) NEXTAGE Settsu Newly opened in April 2020! The first general store in Osaka The Osaka trading area is fully covered by three different store formats 14
Slide 15: Consolidated Balance Sheets – Assets
Consolidated Balance Sheets – Assets (Millions of yen) As of As of Item Nov. 30, 2019 May 31, 2020 Change Remarks Fiscal 2019 (Q4) Fiscal 2020 (Q2) Current assets 61,511 73,358 +11,847 Cash and deposits 11,060 34,375 +23,315 Increased due to decreases in inventories and loans Merchandise 38,675 31,6
Slide 16: Consolidated Balance Sheets – Liabilities and Net Assets
Consolidated Balance Sheets – Liabilities and Net Assets (Millions of yen) As of As of Item Nov. 30, 2019 May 31, 2020 Change Remarks Fiscal 2019 (Q4) Fiscal 2020 (Q2) Current liabilities 28,347 34,575 +6,228 Accounts payable – trade 7,169 4,758 −2,411 Short-term loans payable 11,942 18,371 +6,429 C
Slide 17: Contents
Contents 1. Results Overview 2. H2 Fiscal 2020 Initiatives 3. Reference Information 17
Slide 18: Consolidated Operating Results Forecasts for Fiscal 2020
Consolidated Operating Results Forecasts for Fiscal 2020 Fiscal 2020 Percent of Percent of Progress of Full-year plan (Millions of yen) (Q2 Results) net sales net sales full-year plan Net sales 115,791 100.0% 245,000 100.0% 47.3% Operating income 177 0.2% 3,000 1.2% 5.9% Ordinary income (loss) −23 —
Slide 19: Impact of COVID-19
Impact of COVID-19 Economic environment Business impact towards the end of Q2 Following the declaration of a Sales volume declined due to reduced Sales state of emergency, people customer traffic across Japan refrained from Unit sales price of cars fell due to changes in going out the demand p
Slide 20: Trends in Stock-type Business Results
Trends in Stock-type Business Results Change in vehicle safety inspections and revenue Change in retail car sales and net premiums written from maintenance services 100,000 12,000 80,000 12,000 Net premiums written Retail car sales Revenue from maintenance services Vehicle safety inspections 10,000
Slide 21: A Business Model Responsive to Changes in the Market Environment
A Business Model Responsive to Changes in the Market Environment Develop lifelong customer Measures to increase customers (active users) relationships, thereby aiming to expand revenue • Increase customers through ongoing aggressive new store openings Measures and initiatives to encourage customer
Slide 22: H2 Fiscal 2020 Initiatives
H2 Fiscal 2020 Initiatives Hiring (1)Hiring of new graduates (of 2021) and mid-career workers (No major changes to the recruitment plan for new graduates) Basic policy • Actively use online job interviews • Host online recruiting sessions in which store staff also participate Recruiting activities u
Slide 23: H2 Fiscal 2020 Initiatives
H2 Fiscal 2020 Initiatives Education <Education system in H1> • Conduct remote training using N-BOOK and “Growing Together” Notebook Basic policy • Conduct e-learning using internal training videos • Review the progress of education using a web conference tool Aiming at more practical education and
Slide 24: Contents
Contents 1. Results Overview 2. H2 Fiscal 2020 Initiatives 3. Reference Information 24
Slide 25: 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 FY2015 14,271 13,225 12,806 16,709 FY2015 700 787 482 873 Fiscal 2016 FY2016 14,019 16,684 16,8
Slide 26: 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 3,866 5,266 3,506 2,599 Quarter 122 203 175 17 Fiscal 2016 Cumulative 3,866 9,127 9,525 5,272 Fiscal 2016 Cumulative 122 354 315 2 YoY 160.4% 183.7% 16
Slide 27: 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 2015 13,506 12,678 11,773 14,961 52,920 (1) Fiscal 2015 225 271 273 318 1,088 (2) Fiscal 2016 16,395 19,425 18,350 19,490 73,662 (2) Fiscal 201
Slide 28: Reference Information
Reference Information (¥ thousand) Q1 Q2 Q3 Q4 Full year Consolidated statements of income Fiscal 2018 Fiscal 2019 YoY Fiscal 2018 Fiscal 2019 YoY Fiscal 2018 Fiscal 2019 YoY Fiscal 2018 Fiscal 2019 YoY Fiscal 2018 Fiscal 2019 YoY Net sales 34,559,862 49,130,548 42.2% 41,081,383 55,691,257 35.6% 42,
Slide 29: 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 30: 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