Slide 1: Fiscal 2021 2nd Quarter Financial Results Presentation
Financial Results Presentation Fiscal 2021 2nd Quarter Financial Results Presentation July 6, 2021 NEXTAGE Co., Ltd. (3186)
Slide 2: Contents
Contents 1. Results Overview 2. Fiscal 2021 Initiatives 3. Reference Information 2
Slide 3: Fiscal 2021 Results
Fiscal 2021 Results Performance highlights (December 2020 to May 2021) (YoY: +20.2%) Consolidated net sales ¥139,231 million (Achievement of full fiscal year target: 49.7%) (YoY: +3,465.0%) Consolidated operating income ¥6,345 million (Achievement of full fiscal year target: 57.7%) (YoY: —%) C
Slide 4: Overview of the Fiscal 2021 Results (Q2)
Overview of the Fiscal 2021 Results (Q2) Key Points of Financial Results • Net sales YoY comparison: +20.2% due to new store openings • Gross profit YoY comparison: +41.8% due to efforts to improve inventory turnover and strengthen opening of standalone vehicle purchasing stores • Ordinary income On
Slide 5: Overview of the Fiscal 2021 Results (Q2)
Overview of the Fiscal 2021 Results (Q2) Q1 Q2 Percent of Previous Percent of Previous Millions of yen Results Results net sales year net sales year Net sales 63,129 100.0% 61,694 76,101 100.0% 54,096 Gross profit 12,250 19.4% 9,812 14,067 18.5% 8,752 Operating 2,802 4.4% 305 3,542 4.7% −127 income
Slide 6: Used Car Market Environment in Fiscal 2021
Used Car Market Environment in Fiscal 2021 ■ Used car registrations (December 2020 to end of May 2021) Results Results Comparison Results Comparison Number of units in FY2021 in FY2020 with FY2020 in FY2019 with FY2019 Ordinary passenger 1,410,315 1,329,735 106.1% 1,447,790 97.4% cars Kei (light) 1,
Slide 7: New Car Market Environment in Fiscal 2021
New Car Market Environment in Fiscal 2021 ■ New car (Japanese cars) registrations (December 2020 to end of May 2021) Results Results Comparison Results Comparison Number of units in FY2021 in FY2020 with FY2020 in FY2019 with FY2019 Ordinary passenger 1,189,639 1,087,912 109.4% 1,310,824 90.8% cars
Slide 8: Monthly Retail Sales Volume in Fiscal 2021
Monthly Retail Sales Volume in Fiscal 2021 10,000 ■ Monthly retail car sales volume and YoY comparison 9,113 8,989 9,000 8,737 8,309 8,000 7,174 7,618 7,640 7,812 8,460 7,056 7,145 8,482 7,547 7,000 7,242 6,324 7,162 6,931 6,660 5,963 6,000 6,375 5,160 5,936 5,806 5,824 5,549 5,267 5,233 5,000 4,902
Slide 9: Key KPI Status
Key KPI Status Retail car sales (December 2020 to May 2021) ◎ 45,334 vehicles (YoY: +14.5%) Vehicle purchases (December 2020 to May 2021) ◎ 34,514 vehicles (YoY: +54.2%) Vehicle safety inspections (December 2020 to May 2021) ◎ 35,823 vehicles (YoY: +25.3%), Designated workshops: 46 storefronts Net p
Slide 10: Store Openings in FY2021 (Result and Planned)
Store Openings in FY2021 (Result and Planned) Number of Q1 Q2 Q3 Q4 stores at the end of the period [Imported car [General store] [General store] [General store] [General store] dealership] Miyazaki-Kita, Nissin- 2 storefronts 4 storefronts 41 storefronts VW Osaka Ekimae, Kouchi, Hirakata Makuhari [
Slide 11: New Store Openings
New Store Openings Change in number of locations Standalone vehicle purchasing store New vehicle dealership (Number of stores) Dealership 80 76 70 70 65 60 57 49 50 46 45 42 40 30 25 20 21 21 20 18 18 13 12 12 10 4 5 0 0 1 1 1 0 Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020
Slide 12: New Openings (Q2)
New Openings (Q2) Nagakute-Green Road Hamamatsu Akishima Miyazaki-Kita (First store in the prefecture) Nissin-Ekimae Saitama-Chuo Ichinomiya- Ishioka Subaru (First store specialty store in the prefecture) Kouchi Makuhari (First store in the prefecture) Grand opening of 15 stores in 10 locations nati
Slide 13: Changes in Gross Profit Margin and SG&A Expenses
Changes in Gross Profit Margin and SG&A Expenses ■ Changes in gross profit margin and selling, general and administrative expenses (consolidated) 24.0% Gross profit margin 22.0% Selling, general and 20.5% administrative expenses 20.0% 20.0% 19.4% 18.5% 18.0% 16.2% 15.9% 16.0% 16.4% 14.0% 15.4% 14.9%
Slide 14: Factors Contributing to a Decline in the Gross Profit Margins
Factors Contributing to a Decline in the Gross Profit Margins ■ Changes in inventory turnover by quarter (Used car business) (Day) Increase in average retail unit price 50 49 48 48 Fiscal 2020 • Decrease in profit margin (Comparison with Q1) Fiscal 2021 42 41 40 Normalization of inventory backlogs 4
Slide 15: Consolidated Balance Sheets – Assets
Consolidated Balance Sheets – Assets (Millions of yen) As of As of Item Nov. 30, 2020 May 31, 2021 Change Remarks Fiscal 2020 (Q4) Fiscal 2021 (Q2) Current assets 68,889 75,246 +6,357 Cash and deposits 27,443 31,221 +3,778 Merchandise 32,951 32,711 −240 Accounts receivable – trade 6,416 7,840 +1,424
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, 2020 May 31, 2021 Change Remarks Fiscal 2020 (Q4) Fiscal 2021 (Q2) Current liabilities 28,012 28,520 +507 Accounts payable – trade 6,403 6,056 −346 Short-term loans payable 6,276 8,055 +1,779 Current
Slide 17: Progress of Operating Results for Fiscal 2021
Progress of Operating Results for Fiscal 2021 Percent Progress Fiscal 2021 Percent of Full-year plan of net of full- (Q2 Results) net sales (Millions of yen) sales year plan Net sales 139,231 100.0% 280,000 100.0% 49.7% Operating income 6,345 4.6% 11,000 3.9% 57.7% Ordinary income 6,201 4.5% 10,700
Slide 18: Contents
Contents 1. Results Overview 2. Fiscal 2021 Initiatives 3. Reference Information 18
Slide 19: Fiscal 2021 Initiatives
Fiscal 2021 Initiatives Human resource development Promoting education through the Web; work on Remote training human resource development at an early stage Leadership Enhance human resource development ⇒ system Improve skills at an early stage and build a career Business activities Opening of vehic
Slide 20: Changes in the Number of Vehicle Purchasing Stores
Changes in the Number of Vehicle Purchasing Stores ■ Changes in the number of vehicle purchasing stores (Number of stores) 80 storefronts 80 Standalone vehicle purchasing store Purchasing store added to an existing dealership 67 storefronts 70 25 60 57 storefronts 54 storefronts 18 50 12 12 40 store
Slide 21: Effect of Opening Vehicle Purchasing Stores
Effect of Opening Vehicle Purchasing Stores ■ Changes in the composition of used cars purchased for retail sales 30.0% (Used car business) 25.0% 20.0% 15.0% 24.2% 10.0% 19.4% 13.3% 15.2% 5.0% 0.0% Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Q2 (Cumulative) ◎Expand merchandising of purchased vehi
Slide 22: Promotion of Transactions Over a Lifetime
Promotion of Transactions Over a Lifetime 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) 1993 Purchase Replacement 10.0 9.3 9.2 9.0 Replacement cycle has been prolonged 8.8 8.7 9.0 8.1 8.1 7.8 7.9 7.7 8.0 Re
Slide 23: Gross profit by category
Gross profit by category ■ Quarterly changes in gross profit by category (Consolidated) Maintenance Company-wide stores growth Up 123.4% Up 45.3% Vehicle Others purchasing Maintenance stores stores Up 123.7% Vehicle purchasing stores New vehicle dealerships Dealerships Fiscal 2019 Q2 Fiscal 2019 Q3
Slide 24: Contents
Contents 1. Results Overview 2. Fiscal 2021 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 FY2016 17,886 21,950 21,067 23,092 FY2016 937 1,078 1,145 929 Fiscal 2017 FY2017 22,848 24,431
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 3,846 5,563 4,687 5,920 Quarter 61 100 167 92 Fiscal 2017 Cumulative 3,846 9,815 11,565 16,257 Fiscal 2017 Cumulative 61 168 309 202 YoY 99.5% 107.5% 1
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 2016 16,395 19,425 18,350 19,490 73,662 (1) Fiscal 2016 310 318 389 443 1,462 (2) Fiscal 2017 22,715 25,862 25,121 25,223 98,923 (2) Fiscal 201
Slide 28: Reference Information
Reference Information (¥ thousand) Consolidated Q1 Q2 Q3 Q4 Full year statements of income Fiscal 2019 Fiscal 2020 YoY Fiscal 2019 Fiscal 2020 YoY Fiscal 2019 Fiscal 2020 YoY Fiscal 2019 Fiscal 2020 YoY Fiscal 2019 Fiscal 2020 YoY Net sales 49,130,548 61,694,570 25.6% 55,691,257 54,096,941 △2.9% 56,
Slide 29: Reference Information
Reference Information Beginning of Q1 Q2 Q3 Q4 End of Fiscal Change in Fiscal 2021 (Results) (Results) (Plan) (Plan) 2021 (Plan) Fiscal 2021 Medium-sized 15 New store 1 16 +1 dealerships storefronts openings storefront storefronts storefront (Japanese cars) 31 New store 4 2 4 41 +10 General store st
Slide 30: 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 31: 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