Slide 1: Fiscal 2020 Financial Results Presentation
Financial Results Presentation Fiscal 2020 Financial Results Presentation January 8, 2021 NEXTAGE Co., Ltd. (3186)
Slide 2: Contents
Contents 1. Results Overview and Fiscal 2020 Topics 2. Fiscal 2021 Outlook 3. Market Environment and Business Model 4. Reference Information 2
Slide 3: Fiscal 2020 Results Topic Highlights
Fiscal 2020 Results Performance highlights (December 2019 to November 2020) (YoY: +10.0%) Consolidated net sales ¥241,146 million (Achievement of full fiscal year target: 100.5%) (YoY: +12.2%) Consolidated operating income ¥6,825 million (Achievement of full fiscal year target: 105.0%) (YoY: +10
Slide 4: Quarterly Overview of the Fiscal 2020 Results
Quarterly Overview of the Fiscal 2020 Results Q1 Q2 Q3 Q4 Fiscal 2020 Fiscal 2019 YoY Fiscal 2020 Fiscal 2019 YoY Fiscal 2020 Fiscal 2019 YoY Fiscal 2020 Fiscal 2019 YoY Net sales 61,694 49,130 125.6% 54,096 55,691 97.1% 62,925 56,297 111.8% 62,429 58,144 107.4% Operating income (loss) 305 1,345 22.
Slide 5: Used Car Market Environment in Fiscal 2020
Used Car Market Environment in Fiscal 2020 ■ Used car registrations (December 2019 to end of November 2020) Ordinary passenger 2,729,785 vehicles (−2.7% YoY) cars (Fiscal 2019: 2,805,042 vehicles) Kei (light) cars 3,031,245 vehicles (−3.7% YoY) (Fiscal 2019: 3,148,931 vehicles) Imported cars 592,274
Slide 6: New Car Market Environment in Fiscal 2020
New Car Market Environment in Fiscal 2020 ■ New car (Japanese cars) registrations (December 2019 to end of November 2020) Ordinary passenger 2,462,901 vehicles (−13.3% YoY) cars (Fiscal 2019: 2,842,273 vehicles) Kei (light) cars 1,699,869 vehicles (−11.9% YoY) (Fiscal 2019: 1,929,068 vehicles) Impor
Slide 7: Monthly Retail Sales Volume in Fiscal 2020
Monthly Retail Sales Volume in Fiscal 2020 10,000 ■ Monthly retail car sales volume and YoY comparison 9,113 9,000 8,737 8,482 8,000 7,618 7,640 7,812 7,145 7,056 7,000 7,547 6,324 6,931 5,549 5,963 7,162 6,000 4,574 6,660 6,375 5,936 5,806 5,233 5,824 5,000 5,267 4,902 4,000 4,037 Retail car sales
Slide 8: Key KPI Status
Key KPI Status Retail car sales (December 2019 to November 2020) ◎ 81,540 vehicles (YoY: +7.1%) Vehicle purchases (December 2019 to November 2020) ◎ 50,554 vehicles (YoY: +34.2%) Vehicle safety inspections (December 2019 to November 2020) ◎ 58,517 vehicles (YoY: +32.7%), Designated workshops: 39 sto
Slide 9: Fiscal 2020 Store Opening Results
Fiscal 2020 Store Opening Results Q1 Q2 Q3 Q4 [General store] [General store] [General store] [Medium-sized store] Matsuyama Chuo Store Oyama Store Sapporo Utsukushigaoka Korien Subaru Specialist (Ehime Prefecture) (Tochigi Prefecture) Store (Hokkaido) Store (Osaka Prefecture) Odaka Store Settsu Sto
Slide 10: New Store Openings
New Store Openings Change in number of stores and locations Change in number of locations by category 160 No. of locations No. of stores Standalone vehicle purchasing store 144 New vehicle dealership 140 130 Dealership 120 70 65 104 97 60 57 100 87 49 50 45 46 80 74 42 67 40 63 60 56 51 47 30 42 20
Slide 11: New Openings
New Openings Matsuyama Odaka Store Shingu Store Chuo Store Oyama Store Settsu Store Sapporo Utsukushigaoka Store Takaoka Store Neyagawa Store Volvo Car Fukuoka Higashi 11
Slide 12: Trend in Gross Profit Margin
Trend in Gross Profit Margin ■ Quarterly change in gross profit margin (consolidated) (Unit:%) 24.0% 23.0% Previous year’s gross profit margin (Fiscal 2019) Gross profit margin results (Fiscal 2020) 22.0% Selling, general and administrative expenses (Fiscal 2020) 20.5% 20.0% 20.0% Improve operating
Slide 13: Consolidated Balance Sheets – Assets
Consolidated Balance Sheets – Assets (Millions of yen) As of As of Item Nov. 30, 2019 Nov. 30, 2020 Change Remarks Fiscal 2019 (Q4) Fiscal 2020 (Q4) Current assets 61,511 68,889 +7,377 Cash and deposits 11,060 27,443 +16,383 Increased due to decreases in inventories and loans Merchandise 38,675 32,9
Slide 14: 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 Nov. 30, 2020 Change Remarks Fiscal 2019 (Q4) Fiscal 2020 (Q4) Current liabilities 28,347 28,012 −334 Accounts payable – trade 7,169 6,403 −765 Short-term loans payable 11,942 6,276 −5,666 Curre
Slide 15: Contents
Contents 1. Results Overview and Fiscal 2020 Topics 2. Fiscal 2021 Outlook 3. Market Environment and Business Model 4. Reference Information 15
Slide 16: Consolidated Operating Results Forecasts for Fiscal 2021
Consolidated Operating Results Forecasts for Fiscal 2021 Percent of Plan for H1 Percent of Percent of Fiscal 2020 Full-year plan YoY net sales Fiscal 2021 net sales net sales (Millions of yen) Net sales 241,146 100.0％ 134,000 100.0％ 280,000 100.0％ 116.1％ Operating income 6,825 2.8％ 5,100 3.8％ 11,000
Slide 17: Fiscal 2021 Store Opening Plan
Fiscal 2021 Store Opening Plan Q1 Q2 Q3 Q4 [Imported car [General store] [General store] [General store] 4 storefronts dealership] 2 storefronts 3 storefronts 1 storefront [Medium-sized store] [Standalone [Standalone 1 storefront [Standalone purchasing store] purchasing store] purchasing store] [Sta
Slide 18: Fiscal 2021 Initiatives
Fiscal 2021 Initiatives Securing human resources Recruitment Hire 500 new graduates + mid-career workers activity ⇒Actively use online job interviews Reduction of Create a system that delivers results employee ⇒Decrease turnover of employees with less than one year of service turnover Education Oper
Slide 19: Contents
Contents 1. Results Overview and Fiscal 2020 Topics 2. Fiscal 2021 Outlook 3. Market Environment and Business Model 4. Reference Information 19
Slide 20: Market Environment Comparison: Percentage of Sales of New and Used Cars
Market Environment Comparison: Percentage of Sales of New and Used Cars ■ 【U.S. Market】 Percentage of sales volume ■ 【Japanese Market】 Percentage of sales volume of new and used cars （2019） of new and used cars （2019） Used car sales New car sales volume volume ２９.５％ ３１.７％ Used car sales New car sale
Slide 21: Market Environment Comparison: Income Distribution and Average Income
Market Environment Comparison: Trend in Income Distribution and Average Income ■ 【U.S. Market】 Trend in household income ■ 【Japanese Market】 Trend in household distribution and average income income distribution and average income (Percentage distribution of household income: %) (Average and median
Slide 22: Market Environment Comparison: Environment Surrounding Used Cars
Market Environment Comparison: Environment Surrounding Used Cars （Sales: $ thousand） ■ Trend in sales and sales volume of (Sales volume: unit) 18,000,000 major used car dealers in the U.S. 800,000 (Used cars) 748,961 721,512 16,000,000 Sales 671,294 700,000 Sales volume 619,936 14,392,360 15,172,772
Slide 23: Environment Surrounding Used Cars
Market Environment Comparison: Environment Surrounding Used Cars Past image of used cars in Japan Concerned about Don't want to buy scratches and the car that smells of used cars someone else used Changes in the Diversification of Low domestic Change in consumer economic environment lifestyles incom
Slide 24: Business Model
Business Model Number of years to buy a new passenger car to replace the Replacement cycle: 5.5 years existing one (for household with two or more people) Purchase Replacement 1993 10.0 9.3 9.2 Replacement cycle has 9.0 8.7 8.8 9.0 been prolonged 8.1 8.1 7.8 7.9 7.7 8.0 Replacement cycle: about 9 ye
Slide 25: 2030 Vision
2030 Vision Net sales １trillion yen Operating income 70 billion yen Used car dealership: 200 Number of Standalone purchasing store: 50 locations New vehicle dealership: 70 25
Slide 26: Contents
Contents 1. Results Overview and Fiscal 2020 Topics 2. Fiscal 2021 Outlook 3. Market Environment and Business Model 4. Reference Information 26
Slide 27: 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 28: 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 29: 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 30: 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 34,559,861 49,130,548 42.2% 41,081,383 55,691,257 35.6% 42,
Slide 31: Reference Information
Reference Information Fiscal 2020 End of Fiscal Beginning of Q1 Q2 Q3 Q4 Change in Store opening Fiscal 2020 2020 Fiscal 2020 (Results) (Results) (Results) (Results) (Results) results Medium-sized Integrations 16 −1 1 16 0 dealerships Format storefronts storefront storefront storefronts storefront (
Slide 32: Reference Information
Reference Information Fiscal 2021 End of Format End of Fiscal changes Q1 Q2 Q3 Q4 Change in Store opening Fiscal Beginning of 2021 Fiscal 2021 (Plan) (Plan) (Plan) (Plan) (Plan) Plan 2020 Fiscal 2020 Medium-sized 16 15 New store 1 16 +1 dealerships (Japanese cars) storefronts storefronts openings st
Slide 33: 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 34: 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