Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — FY2022 Earnings Presentation
52 slides from Autobacs Seven's earnings presentation, May 11, 2022
Slide 1: Results for the year ended March 31, 2022
Results for the year ended March 31, 2022 May 11, 2022 AUTOBACS SEVEN CO., LTD.
Slide 2: Table of Contents
Table of Contents Consolidated Results of FY March 2022 and P. 2 Forecasts for FY March 2023 １．Overview of Business Results P. 3 ２．Domestic AUTOBACS Business P. 8 ３．Overseas Business P. 10 ４．Car dealership, BtoB and Online Alliance Business P. 12 ５．Forecasts for FY March 2023 P. 14 Initiatives in FY
Slide 3: Consolidated Results of FY March 2022 and Forecasts for FY March 2023
Consolidated Results of FY March 2022 and Forecasts for FY March 2023 Officer Finance & Accounting / PR & IR Tomoaki Ikeda 2
Slide 4: FY March 2022 Consolidated P/L
Overview of Business Results FY March 2022 Consolidated P/L Net sales and income increased due to strategic sales promotion for demand in winter items, although sales were affected by the rapid spread of COVID-19. The Domestic AUTOBACS Business was affected a rapid spread of COVID-19 in summer. Even
Slide 5: Key Points of Consolidated Financial Results
Overview of Business Results Key Points of Consolidated Financial Results 【Domestic】 ✓ Sales and number of customers recovered in the second half of the year due to a decrease of COVID infection, despite a decline in customer numbers in the first half of the year due to voluntary curfew due to the r
Slide 6: Consolidated P/L Five Years Changes
Overview of Business Results FY March 2022 Consolidated P/L Five Years Changes Income increased 5 consecutive years from FY March 2018 （%） （Billion Yen） （Billion Yen） Sales changes Operating income ・ 240 6 Operating income ratio changes 14 5.1 230 4.8 5 12 220 10 4 3.4 3.5 3.4 8 210 3 228.5 6 11.5 2
Slide 7: Operating Income YoY Ups & Downs by Reporting Segments
Overview of Business Results Operating Income YoY Ups & Downs by Reporting Segments Operating Income increased due to Domestic AUTOBACS Business. （Million Yen） FY March 2022 FY March 2021 0 6 Amounts are rounded down. % of Net Sales and YoY comparisons are calculated in yen.
Slide 8: Segment Information
Overview of Business Results Segment Information *For reference purposes only （Million Yen） FY March 2022 FY March 2021 YoY* Summary Sales 178,274 177,937 +0.2% Although customer decreased due to a rapid spread of infection in the first half, Domestic Gross profit 60,343 58,891 +2.5% sales of winter
Slide 9: Retail Sales in Total Domestic AUTOBACS Group Stores
Domestic AUTOBACS Business FY March 2022 Retail Sales in Total Domestic AUTOBACS Group Stores RETAIL SALES INCLUDING FCs: 269.9 billion yen (+1.0％ YoY) （Billion Yen） 267.0 269.9 Result YoY 300 Automotive goods & services 214.0BY -0.8% 250 30.4BY +12.2% Used car purchase 200 & sales 29,809 +1.3% 215.
Slide 10: Sales Variance by Merchandise
Domestic AUTOBACS Business Sales Variance by Merchandise (FY March 2022) Sales* changes by merchandise category(YoY change in amount; total store basis) （Million Yen） 6,000 3,928 4,000 Car Electronics Motor Sports Accessories Car Leisure Motorcycle 2,321 Car Repair 2,000 Goods Goods Goods Items 787
Slide 11: Overseas Business Sales and Operating Income Changes
Overseas Business FY March 2022 Overseas Business Sales and Operating Income Changes Sales increased with sales recovery in France and strengthening wholesaling, in Australia. SG&A expenses increased in reaction to the previous fiscal year. Sales Operating income (Billion Yen) Main factor of Operati
Slide 12: Performance by Overseas Subsidiaries
Overseas Business FY March 2022 Performance by Overseas Subsidiaries （Million Yen） France Australia Singapore China Malaysia Thailand Number of stores 10 0 2 0 4 33 Period 22/3 21/3 22/3 21/3 22/3 21/3 22/3 21/3 22/3 21/3 22/3 21/3 Net sales 6,395 5,784 2,478 1,689 1,282 1,503 1,021 778 52 40 0 329
Slide 13: Car Dealership, BtoB and Online Alliance Business Sales and Operating Income
Car Dealership, BtoB and Online Alliance Business FY March 2022 Sales and Operating Income Changes Car Dealership, BtoB Business remained steady. SG&A expense increased for upfront investments. Sales Main factor: Operating income (Billion Yen) Car Dealership, BtoB Business remained steady. (Million
Slide 14: Overview of Business Results
Car Dealership, BtoB and Online Alliance Business FY March 2022 Overview of Business results Car Dealership Business ✓ Acquired all shares of TA Import Co., Ltd., a company that operates authorized Audi dealers, in April 2021. (Development of its third brand following BMW and MINI） ✓ Revenue was hig
Slide 15: Forecasts for FY March 2023
Forecasts for FY March 2023 14
Slide 16: Assumption of Business Environment for FY March 2023
Forecasts for FY March 2023 Assumption of Business Environment for FY March 2023 Positive factors ✓ Social and economic activity, which can be expected to recover (COVID-19) ✓ Increase in demand for maintenance parts for existing owned vehicles due to their aging Negative factors ✓ A worsening of th
Slide 17: FY March 2023 Forecast for Consolidated Result
Forecasts for FY March 2023 FY March 2023 Forecast for Consolidated Result FY March FY March 2023 (Forecast) 2022 YoY （Billion Yen） 1st Half YoY 2nd Half YoY Full Year Up&Down YoY Net Sales 228.5 105.0 +1.4% 125.0 +0.0% 230.0 +1.4 +0.6% Gross Profit 77.1 35.9 +3.0% 42.3 +0.1% 78.2 +1.1 +1.4% Gross P
Slide 18: FY March 2023 Forecast for Segment
Forecasts for FY March 2023 FY March 2023 Forecast for Segment FY March 2023 (Forecast) FY March 2022 （Million Yen） 1st Half 2nd Half Full Year YoY Domestic Sales 178,274 78,590 95,690 174,280 -2.2% AUTOBACS Operating Business 20,343 6,810 11,690 18,500 -9.1% Income Sales 11,084 6,670 7,280 13,950 +
Slide 19: FY March 2023 Dividends and Share Buyback
Forecasts for FY March 2023 FY March 2023 Dividends and Share Buyback Dividends per share Dividends and Share Buyback （Yen） （Billion Yen） 80 1st Half 10 Amount of share buyback 2nd Half 70 Dividends paid 8 60 50 6 3.00 30 30 30 40 30 4 20 4.79 4.73 4.67 30 30 30 2 10 0 0 FY March FY March FY March F
Slide 20: FY March 2023 Capital Expenditures & Depreciation
Forecasts for FY March 2023 FY March 2023 Capital Expenditures & Depreciation Capital Expenditures Depreciation （Billion Yen） （Billion Yen） 7 7 6.30 6.10 6 6 5 4.61 5 4.41 4.16 4.20 3.99 4 4 3.72 3.85 3.42 3 3 2 2 1 1 0 0 2019/3 2020/3 2021/3 2022/3 2023/3 2019/3 2020/3 2021/3 2022/3 2023/3 （Forecas
Slide 21: Initiative Results in FY March 2022
Initiative Results in FY March 2022 Representative Director and Chief Executive Officer Kiomi Kobayashi 20
Slide 22: Management Philosophy
Initiative Results in FY March 2022 Management Philosophy AUTOBACS has always been committed to providing customers with the best solutions for their car lifestyles and creating a rich and healthy automotive society. 21
Slide 23: Our Goals through Five-year Rolling Plan
Initiative Results in FY March 2022 1. Our Goals through Five-year Rolling Plan Actively promote collaboration across business boundaries to improve customer convenience 22
Slide 24: Initiatives in FY March 2022: Policy
Initiative Results in FY March 2022 ２．Initiatives in FY March 2022 （１）Policy ◼ Initiatives to increase contact points with customers ◼ Active response to environmental changes ◼ Initiatives for Human Resource Development 23
Slide 25: Initiatives in FY March 2022: Priority Matters
Initiative Results in FY March 2022 ２． Initiatives in FY March 2022 （２） Priority maters [Initiatives to increase contact points with customers] Creation of new customers - Presenting automotive goods in catalogs for new models and holding collaboration events supported by a business alliance with Ni
Slide 26: Initiatives in FY March 2022: Priority Matters
Initiative Results in FY March 2022 ２． Initiatives in FY March 2022 （２）Priority maters [Strengthen active response to environmental changes] Improvement of Next-Generation Maintenance Services - All 434 designated stores for statutory safety inspections achieved Specified Maintenance Certification (
Slide 27: Initiatives in FY March 2022: Priority Matters
Initiative Results in FY March 2022 ２． Initiatives in FY March 2022 （２） Priority maters [Initiatives for Human Resource Development] Creation of workplace with job satisfaction - Initiatives aiming to recruit, develop, and retain certified mechanics (improving their working environment in service pi
Slide 28: Initiatives in FY March 2023 and Future
Initiatives in FY March 2023 and Future Representative Director and Senior Managing Executive Officer Yugo Horii 27
Slide 29: Future Directions
Initiatives in FY March 2023 and Future ２．Future Directions - Acceleration of the aging of the Advancement of the aging population Aging of the -In Japan, the percentage of the population that society Social working population is 65 years of age or older will exceed 30%. -Possibility that regional c
Slide 30: Future Initiatives: Policy
Initiatives in FY March 2023 and Future ３．Future Initiatives Policy ◼ Improve effectiveness and speed ◼ Strengthening initiatives for top-line growth ◼ Ongoing initiatives for human resource development 29
Slide 31: Priority initiatives in FY March 2023
Initiatives in FY March 2023 and Future ３．Future Initiatives Priority initiatives in FY March 2023 Priority initiatives Improve effectiveness and speed - Review business portfolio by strengthening investment return management - Investment in logistics and IT infrastructure Strengthening initiatives
Slide 32: Initiatives for ESG・SDGs
Initiatives in FY March 2023 and Future 4. Initiatives for ESG・SDGs Materiality was identified through discussions at the Board of Directors 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
Slide 33: Initiatives for ESG・SDGs
Initiatives in FY March 2023 and Future 4. Initiatives for ESG・SDGs Non-financial objectives to achieve materiality Non-financial targets Promoting efforts to achieve zero traffic accidents Materiality Approach Improving the position of and developing certified mechanics Creation of Safety and busin
Slide 34: Numerical Targets (Consolidated)
Initiatives in FY March 2023 and Future 5．Targets for FY March 2023 Numerical Targets (Consolidated) Sales 230.0BY Operating Profits 10.0BY Net Profit 10.3BY Net Sales 6.9BY ROE 5.6％ 33
Slide 35: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX Next- Generation Maintenance Efforts to create networks Network ■Conclusion of a genuine parts supply agreement with Telsa Motors Japan in ■Participation in EV market conjunction with statutory safety - Under consideration that inspections and regular inspecti
Slide 36: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX Automotive goods sales network Efforts to create networks ◼ Collaborations with Nissan Motor Co., Ltd. - Formed a business alliance with Nissan crossing the boundaries between industries to improve customer convenience and create a richer car lifestyle culture
Slide 37: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX Efforts to create networks ◼ Operates three Authorized ◼ AUTO IN Shaken and Tire Dealers of Audi Center Next- Automotive Multi-Dealer Generation Service Pit related Network Maintenance Network Goods Sales Network Network - Start operation as AUTO IN Shaken - S
Slide 38: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX ◼ Creating a local network for Efforts to create networks maintenance Next- Generation Service Pit Maintenance Network Network - Established a system to respond promptly to environmental changes surrounding the maintenance industry, thus establishing a system
Slide 39: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX Opened a new ADAS Calibration Center* Efforts to create networks Next- Service Pit *Recently launched cars come with many features supporting safe driving, such as Generation Network automatic braking. They therefore have cameras and sensors mounted on the Mai
Slide 40: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX ■Launch of a cloud-based service Efforts to create networks detecting drunkenness and alcohol consumption for ■AUTOBACS app upgraded corporate use Automotive- related Goods Sales Network Online Network - The facility also has the ability to record vehicles' ma
Slide 41: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■Opening of the brand's first store GORDON MILLER KURAMAE - The garage lifestyle-focused brand GORDON MILLER has opened its first store - The store is the only one store that sells all GORDON MILLER items. - The product lineup incl
Slide 42: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX Initiatives of each business ■Unveiling of LEGAVELO, the first ■Full-scale entry to custom complete car custom car from ARTA MECHANICS market - The Company acquired FATRASTYLING Inc., - ARTA MECHANICS, a new custom car which engages in the design and developme
Slide 43: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX Logistics Infrastructure Initiatives for the establishment of business foundations ◼ Logistics reform through an AI-based DX of logistics （January 26, 2022） — Invested in GROUND, a provider of logistics solutions, and concluded a business alliance agreement —
Slide 44: Five-year Rolling Plan: APPENDIX
TOPICS Five-year Rolling Plan: APPENDIX Initiatives for the establishment of ■Selected under the 2022 Certified business foundations Health & Productivity Management （March 3, 2022） Outstanding Organizations Recognition ■Recognized as a DX-certified operator Program (White 500) HR IT Information Inf
Slide 45: Application of Accounting Standard for Revenue Recognition
Other Documents (Reference: Application of Accounting Standard for Revenue Recognition, etc.) From the fiscal year ended March 2022, the company have adopted the Accounting Standard for Revenue Recognition, etc. Sales with a right of return The amount of impacts due to the The Group implemented a ch
Slide 46: Used Car Purchasing and Sales
Other Documents FY March 2022 Used Car Purchasing and Sales Total 29,809cars YoY +1.3％ BtoB Sales Retail Details No. of cars sold Details No. of cars sold Sales to 1,003 Used cars 6,808 Headquarters Sales to AA(Auto Auction) via 4,607 New cars 3,375 Headquarters Direct sales from 14,016 stores BtoB
Slide 47: Domestic Store Sales/Number of Purchasing Customers Changes
Other Documents Domestic Store Sales/Number of Purchasing Customers Changes [Same store basis (YoY)] Sales: +0.8% Number of purchasing customers: -2.7% Same store sales and number of purchasing customers at Sales 20% domestic AUTOBACS-chain stores (YoY) 0% -20% 20% Number of Purchasing Customers 0%
Slide 48: Store Openings and Closings
Other Documents Store Openings and Closings FY March 2022 No. of No. of Domestic stores at 1st Half No. of 2nd Half stores at end of stores at end of stores March New S&B R/L Close end of Sep New S&B R/L Close March 2021 2021 2022 AUTOBACS 490 +１ +2/-2 491 +3 494 Super AUTOBACS 74 74 74 AUTOBACS Sec
Slide 49: Balance Sheet: Assets
Other Documents Balance Sheet: Assets 187.9BY 179.7BY 176.5BY 214.9BY 189.9BY （Billion Yen） 28.5 Cash and deposits 24.8 Notes and 38.9 30.6 24.0 37.3 accounts receivable - 25.8 trade 24.2 23.5 23.4 21.7 Merchandise 21.5 Accounts 18.3 20.3 21.3 receivable - 32.0 25.7 other 21.9 15.1 16.6 9.7 10.0 13.
Slide 50: Balance Sheets: Liabilities and Equity
Other Documents Balance Sheets: Liabilities and Equity 187.9BY 179.7BY 176.5BY 214.9BY 189.9BY （Billion Yen） 34.3 Notes and accounts 13.8 6.5 17.7 payable - trade 5.8 13.9 1.7 1.6 15.8 15.1 19.6 14.4 Short-term 11.7 1.4 10.8 borrowings 11.7 11.8 15.2 12.8 2.5 2.9 10.7 4.9 Accounts 1.9 2.0 payable -
Slide 51: Cash Flows
Other Documents Cash Flows Consolidated Cash Flows （Million Yen） 10,000 5,712 5,000 0 -5,000 -7,710 -10,000 -12,300 -15,000 Operating CF Investing CF Financing CF Breakdown of major investments Cash and cash equivalents End of March 2022 ：24.7BY - Investment to IT related End of March 2021 ：38.9BY -
Slide 52: 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