Slide 1: Fiscal 2023 2nd Quarter Financial Results Presentation
Financial Results Presentation Fiscal 2023 2nd Ｑｕａｒｔｅｒ Financial Results Presentation July 3, 2023 NEXTAGE Co., Ltd. (3186)
Slide 2: Contents
Contents １．Results Overview ２．Reference Information 2
Slide 3: Fiscal 2023 Business Performance (Q2)
Fiscal 2023 Business Performance (Q2) (Millions of yen) Percent FY2023 Q2 Comparison FY2022 FY2022 FY2022 FY2023 FY2023 of net YoY cumulative with plan Q2 Q3 Q4 Q1 Q2 sales Net sales 229,828 100.0％ 126.0％ 46.0% 100,825 106,997 128,786 117,937 111,890 Gross 41,651 18.1％ 124.4％ － 17,786 20,339 20,208
Slide 4: Market Environment (the Number of Car Registrations)
Market Environment (the Number of Car Registrations) ■ Used car registrations (December 2022 to May 2023) Results Results Comparison Results Comparison Number of units in FY2023 in FY2022 with FY2022 in FY2021 with FY2021 Ordinary passenger cars 1,267,653 1,298,595 97.6% 1,410,315 89.9% Kei (light)
Slide 5: Monthly Retail Sales Volume in Fiscal 2023
Monthly Retail Sales Volume in Fiscal 2023 ■ Monthly retail car sales volume and YoY comparison (Number of units) Comparison with plan：48.4％ 15,000 14,511 14,901 15,458 （FY2023 forecast：160,000 vehicles） 11,551 13,000 11,000 9,206 11,803 9,000 8,460 8,989 8,598 8,309 7,664 8,134 7,789 8,110 7,000 7,
Slide 6: Changes in Key KPI Status
Changes in Key KPI Status Retail car sales Vehicle purchases (Number of units) (Number of units) 77,430 80,000 100,000 94,902 56,403 66,162 40,000 YoY 50,000 YoY 137.3％ 143.4％ 0 0 Fiscal 2022 Q2 Fiscal 2023 Q2 Fiscal 2022 Q2 Fiscal 2023 Q2 cumulative cumulative cumulative cumulative Vehicle safety i
Slide 7: Comparison of Existing-Stores (Financial Performance)
Comparison of Existing-Stores (Financial Performance) ■ Changes in net sales, gross profit and operating income of existing-stores : Ｑ1 Results : Ｑ2 Results Net Sales Gross Profit Operating Income (Millions of yen) YoY (Millions of yen) YoY (Millions of yen) YoY 20,000 200,000 98.2% 40,000 100.1% 91
Slide 8: Comparison of Existing-Stores (Key KPI Status)
Comparison of Existing-Stores (Key KPI Status) Retail car sales Vehicle purchases (Number of units) (Number of units) 60,000 53,508 54,434 63,825 67,294 60,000 40,000 YoY 40,000 YoY 20,000 101.7％ 20,000 105.4％ 0 0 Fiscal 2022 Q2 Fiscal 2023 Q2 Fiscal 2022 Q2 Fiscal 2023 Q2 cumulative cumulative cumu
Slide 9: Financial Results of Each Business Unit
Financial Results of Each Business Unit ■ Net sales ■ Changes in net sales and gross profit of each business unit ■ Gross profit Used vehicle dealerships Purchasing stores Net sales 59,303 Net sales (Millions of yen) 139,851 YoY YoY 109,317 50000 48,220 25000 127.9％ 123.0％ 0000 25000 Gross profit Gr
Slide 10: Gross Profit Margin and SG&A Expenses Ratio Analysis
Gross Profit Margin and SG&A Expenses Ratio Analysis ■ Changes in gross profit margin and selling, general and administrative expenses ratio (consolidated) Gross profit margin Selling, general and administrative expenses ratio 22.0% Operating 21.4% Medium-Term income margin Management Plan 5.5% 19.3
Slide 11: Q2 Topics
Q2 Topics Averted losses from disposal of backlogs and inventory replacement 1 due to review of the purchase composition Ｐ.12、13、 ⇒ improvement in profit per vehicle 15、16 Decreased merchandise balance due to 2 revision of product unit price composition ⇒ improvement in cash flows Ｐ.12、14、21 Control
Slide 12: Analysis of Gross Profit Margin
Analysis of Gross Profit Margin ■ Changes in average retail sales price ■ Changes in average AA sales price and （excluding new vehicle dealerships） and profit per vehicle of AA unit profit per vehicle in used vehicle dealerships （excluding new vehicle dealerships） Sales Price Sales Price Profit per
Slide 13: Product Management Status (Changes from Q1)
Product Management Status (Changes from Q1) ■ Changes in inventory turnover days ■ Supplier composition of retail sales （unit：day） （excluding new vehicle dealerships） （excluding new vehicle dealerships） 47.9 100% 45.1 43.5 41.5 41.8 41.7 41.0 40.5 35.0 47.3 39.7 50.6 55.6 38.9 50% 45.5 37.4 39.6 32.
Slide 14: Product Price Status (Changes from Q1)
Product Price Status (Changes from Q1) ■ Composition of products by unit sales price ■ Changes in merchandise balance analysis （excluding new vehicle dealerships） (Millions of yen) 100% 33.1 26.6 35.0 41.2 50% 72,563 41.5 54,086 28.1 25.3 32.3 0% FY2021 FY2022 FY2023 FY2023 Q4 Q4 Q1 Q2 within 1 mill
Slide 15: Profit per Unit at Used Vehicle Dealerships by Components
Profit per Unit at Used Vehicle Dealerships by Components ■ Changes in profit per unit at used vehicle dealerships by components ① Vehicle body ② Accessories ③ Financial products （％） （％） （％） 400 160 160 350 140 140 300 250 120 120 200 100 100 150 100 80 80 50 60 60 0 -50 40 40 -100 20 20 -150 -200 0
Slide 16: Profit per Unit at Used Vehicle Dealerships by Components
Profit per Unit at Used Vehicle Dealerships by Components ■ Changes in profit per unit at used vehicle dealerships by components ④ AA sales of trade-in and ⑤ Disposal of backlogs and purchased vehicles inventory replacement （％） （％） 200 0 150 -100 100 -200 50 -300 0 -400 -50 loss averted -500 -100 FY
Slide 17: Impact of Changes in the Used Car Market in Japan
Impact of Changes in the Used Car Market in Japan price Phase 1: Market price rising Phase 2: Market price remains high Positive factor Gross profit is likely to increase Negative factor due to increase in product values Decrease in used car registrations (The greater impacts at small and medium-siz
Slide 18: Changes in the Number of Used Car Registrations
Changes in the Number of Used Car Registrations ■ Monthly changes in the number of used car registrations (Number of units) 800,000 105% 600,000 100% 400,000 95% 200,000 90% 0 85% Dec. 2022 Jan. 2023 Feb. 2023 Mar. 2023 Apr. 2023 May 2023 FY2022 FY2023 YoY Source: Statistical data from the Japan Aut
Slide 19: Operating Income Analysis
Operating Income Analysis (Millions of yen) YoY ＋34.9％ The number of stores at the end of Q2 ＋58 storefronts YoY ＋46.6％ YoY ＋47.2％ YoY ＋35.4％ Approx. 1,000 New graduates 9,151 in Apr. 2023 The number of purchased vehicles 7,965 YoY ＋43.4％ The number of retail sales YoY＋37.3％ 19
Slide 20: SG&A expenses Control
SG&A expenses Control ■ Changes in SG&A expenses Human resources-related Sales promotion expenses expenses and retail car sales unit QoQ QoQ 121.0% 98.9% SG&A expenses QoQ 111.7% Retail sales QoQ (Millions of yen) (Number of units) 118.0% 20,000 55,000 FY2023 FY2023 FY2023 FY2023 Q1 Q2 Q1 Q2 10,000
Slide 21: Consolidated Cash Flows Analysis
Consolidated Cash Flows Analysis ■ Changes in consolidated cash flows (Millions of yen) FY2022 Q2 FY2022 FY2023 Q2 28,812 28,236 28,000 Cash flow from 9,976 operating activities turned positive 0 △ 2,331 △ 5,066 △ 9,484 △ 13,831 △ 10,559 △ 17,853 △ 28,000 Cash flows from operating activities Cash fl
Slide 22: Change in the Number of Locations
Change in the Number of Locations ■ Change in the number of locations Standalone vehicle purchasing store （unit: locations） 160 New vehicle dealership Used car dealership 144 140 122 120 105 109 100 100 80 76 63 60 49 39 43 38 40 27 24 24 21 21 21 22 20 0 FY2021 FY2022 FY2023 Q1 FY2023 Q2 FY2023 pla
Slide 23: Fiscal 2023 Store Opening Plan
Fiscal 2023 Store Opening Plan Difference Fiscal 2023 store The beginning End of fiscal Change in opening plan of fiscal 2023 Q1 Q2 Q3 Q4 2023 fiscal 2023 from initial plan Medium-sized 22 New store 2 24 +2 - dealerships openings (Japanese cars) storefronts storefronts storefronts storefronts storef
Slide 24: Contents
Contents １．Results Overview ２．Reference Information 24
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet ■ Consolidated balance sheet （situations of assets and liabilities） As of the end of fiscal 2023 Q2 （millions of yen) As of the end of fiscal 2022 （millions of yen) Current assets Current 流動負債 Current assets Current liabilities liabilities 103,293 111,157 45,214 52,723 (Ca
Slide 26: Industry Trends
Industry Trends ■ Changes in the number of vehicle ■ Changes in the number of inspection units and designated Nextage’s maintenance bases Vehicle inspection maintenance bases Designated (Thousands of unit） maintenance base Certificated Designated 17,000 30,160 maintenance maintenance base base 72 31
Slide 27: Comparison in Existing-Stores
Comparison in Existing-Stores 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 FY2018 31,318 38,387 37,098 38,944 FY2018 1,332 1,746 1,597 1,864 Fiscal 2019 FY2019 34
Slide 28: Comparison in New Stores
Comparison in New Stores New store openings (¥ million, %) New store openings (¥ million, %) Net sales Q1 Q2 Q3 Q4 Operating income Q1 Q2 Q3 Q4 Quarter 12,594 12,027 12,914 18,649 Quarter 278 274 157 217 Fiscal 2019 Cumulative 12,594 24,621 37,535 56,184 Fiscal 2019 Cumulative 278 552 709 926 YoY 20
Slide 29: Breakdown of Net Sales
Breakdown of Net Sales Car sales-related (¥ million, %) Maintenance-related (¥ million, %) Net sales Q1 Q2 Q3 Q4 total Net sales Q1 Q2 Q3 Q4 total (1) Fiscal 2018 28,842 33,691 31,975 34,009 128,517 (1) Fiscal 2018 845 985 1,057 1,238 4,125 (2) Fiscal 2019 39,227 44,344 44,182 43,577 171,330 (2) Fis
Slide 30: Changes in Quarterly Results
Changes in Quarterly Results （unit：million yen） Consolidated Q1 Q2 Q3 Q4 Full year statements of income Fiscal 2021 Fiscal 2022 YoY Fiscal 2021 Fiscal 2022 YoY Fiscal 2021 Fiscal 2022 YoY Fiscal 2021 Fiscal 2022 YoY Fiscal 2021 Fiscal 2022 YoY Net sales 63,129 81,507 29.1% 76,101 100,825 32.5% 72,86
Slide 31: Nextage Management Philosophy
Nextage Management Philosophy -Brand value- Turning 「expectation」 into 「satisfaction」 Customer service Cheerful greetings and sincere, courteous -Management they will love service. Never keep customers waiting. Philosophy- Understand the customer’s needs and respond Be Loved by Customer response to
Slide 32: 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