Slide 1: Fiscal 2018 2nd Quarter Financial Results Presentation
Financial Results Presentation Fiscal 2018 2nd Quarter Financial Results Presentation July 23, 2018 NEXTAGE Co., Ltd. (3186) 1
Slide 2: Contents
Contents 1. Results Overview 2. Fiscal 2018 Initiative Progress 3. Reference Information 2
Slide 3: Fiscal 2018 Results (Q2)
Fiscal 2018 Results (Q2) Performance highlights (December 2017 to May 2018) (YoY: +31.4%) Consolidated net sales ¥ 75,641 million (Achievement of full fiscal year target: 56.0%) (YoY: +25.7%) Consolidated operating income (Achievement of full fiscal year ¥ 2,016 million target: 53.1%) (YoY: +18.
Slide 4: Overview of the Fiscal 2018 Results (Q2)
Overview of the Fiscal 2018 Results (Q2) Net sales: Up 31.4% YoY with the full contribution of quasi‐existing dealerships opened last year Gross profit margin: 16.2% (up 0.7 ppt. YoY) due to improved inventory turnover rate Ordinary profit: Up 18.7% YoY (a new record high for the six months ended Ma
Slide 5: Consolidated Operating Results Forecasts for Fiscal 2018
Consolidated Operating Results Forecasts for Fiscal 2018 Percent of Progress (Millions of yen) Plan YoY net sales rate Net sales 135,000 113.5% 100.0% 56.0% Operating income 3,800 109.4% 2.8% 53.1% Ordinary income 3,700 112.0% 2.7% 50.4% Profit attributable to owners of parent 2,500 110.5% 1.9% 48.3
Slide 6: Market Environment in Fiscal 2018
Market Environment in Fiscal 2018 Domestic used car registrations Japan Automobile Dealers Association Japan Light Motor Vehicle and Motorcycle Association (Ordinary passenger cars) (Kei (light) cars) 500,000 450,000 450,000 400,000 400,000 350,000 350,000 300,000 300,000 250,000 250,000 200,000 200
Slide 7: Sales in Fiscal 2018
Sales in Fiscal 2018 6,000 5,378 5,654 Monthly retail car sales volume and YoY comparison 5,500 5,306 5,000 4,495 4,269 4,500 4,000 4,441 4,366 4,225 4,098 3,965 3,500 3,133 3,722 3,736 3,844 3,614 3,752 3,000 3,255 2,500 2,000 2,585 1,500 Car sales volume increased by 25.6% year on year, but the ma
Slide 8: 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 2017 to May 2018) 28,235 vehicles (YoY: +25.6%) Vehicle purchases (December 2017 to May 2018) 10,928 vehicles (YoY: +83.3%) Vehicle safety inspections (December 2017 to May 2018) 11,951
Slide 9: Fiscal 2018 Store Opening Plan
Fiscal 2018 Store Opening Plan End of Fiscal End of Fiscal Change in Q1 Q2 Q3 Q4 2017 2018 FY2018 New store openings Medium‐sized 29 25 −4 dealerships (Japanese Integrations/ −1 −2 −1 storefronts storefronts storefronts cars) Closings/ storefront storefronts storefront Format changes 7 2 1 2 12 +5 G
Slide 10: New Openings (SUV LAND)
New Openings (SUV LAND) April 28, 2018 Grand opening of SUV LAND Sakai! The first store in Osaka! Showroom (space for business negotiations) Large‐scale maintenance plant 10
Slide 11: New Openings (Volkswagen)
New Openings (Volkswagen) March 10, 2017 Grand opening of Volkswagen Osaka Joto! in Joto‐ku, Osaka NEW Polo Maintenance workshop Showroom (space for business negotiations) 11
Slide 12: New Vehicle Dealership Business
New Vehicle Dealership Business June 1, 2018 New entry to Audi!! Opening of 4 storefronts! in Kanagawa Prefecture Audi Tomei Kawasaki Audi Shonan Audi Totsuka Audi Konandai 12
Slide 13: Consolidated Balance Sheets – Assets
Consolidated Balance Sheets – Assets (Millions of yen) As of As of Item Nov. 30, 2017 May 31, 2018 Change Remarks Fiscal 2017 (Q4) Fiscal 2018 (Q2) Current assets 26,368 33,018 +6,649 Cash and deposits 6,670 11,030 +4,360 Merchandise 15,217 15,733 +515 Influence of new store openings Accounts receiv
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, 2017 May 31, 2018 Change Remarks Fiscal 2017 (Q4) Fiscal 2018 (Q2) Current liabilities 12,186 15,796 +3,610 Accounts payable – trade 2,301 2,866 +564 Short‐term loans payable 4,813 6,634 +1,821 Curre
Slide 15: Contents
Contents 1. Results Overview 2. Fiscal 2018 Initiative Progress 3. Reference Information 15
Slide 16: Fiscal 2018 Initiatives Policy
Fiscal 2018 Initiatives Policy Expanding the lifelong customer relationships and the sales network (1) (2) (3) Expand general Strengthen vehicle Strengthen new stores and SUV purchasing vehicle dealerships LAND [Plan] [Plan] [Plan] General stores: 5 storefronts New store openings: 14 Volkswagen: 1 s
Slide 17: Our Business Model
Our Business Model Promote visiting stores due to competitive prices Percentage of contracts Provided value signed at stores About 50% (industry average: about 20%) “You can certainly find a car with higher Car sale Purchase Accessories sale quality than its price!” Bolster purchases to support Impr
Slide 18: Business Model for Used Ordinary Car Dealership Business
Business Model for Used Ordinary Car Dealership Business Conventional model Car sales earnings Accessories Sales (cross selling) Sales 0 year 8th year We have only one chance every 8 years for One shot providing services. transaction (a chance for generating earnings) 18
Slide 19: Our Business Model
Our Business Model After change in policy Vehicle Vehicle Safety Vehicle Safety Safety Inspection Inspection Inspection Sales Purchase Insurance Insurance Insurance Insurance Insurance Insurance Insurance 0 year 3rd year 5th year 7th year 8th year Purchase of tires etc. Car accident repair etc. ➡ An
Slide 20: Our Business Model
Our Business Model Bolstering our strengths Increasing services provided for vehicles within a household Vehicle Safety Inspection Insurance Replacement Transactions Creating business chances through painstaking follow‐up within a household ➡ Establishing a stable foundation for generating earnings
Slide 21: Our Business Model
Our Business Model Conventional model Existing model Competitive strength of Large‐scale repair vehicles facilities Competitive strength of vehicles Vehicle lineup One‐coin oil (Price/Quality) Stores’ appearances Purchase of vehicles Locations The largest scale in the Transactions within a area hous
Slide 22: General Store
General Store From Medium‐Sized Dealerships to General Stores 22
Slide 23: Market Size of Car Industry
Market Size of Car Industry Retail used car Trade‐in and purchasing Maintenance market New import vehicle market used car market market Approx. Approx. Approx. ¥5.3 trillion Approx. ¥2.8 trillion ¥2.0 trillion (Vehicle safety ¥1.5 trillion (Approx. 2.7 (Approx. 4.0 inspection: (Approx. 0.34 million
Slide 24: The Vision for 2030
The Vision for 2030 Our company will invest 100 billion yen in the car industry toward achieving net sales of 1 trillion yen in 2030!! 24
Slide 25: Used car dealership net sales target of 800 billion yen
General Stores/SUV LAND/ Large‐Sized Import Vehicle Stores Net sales of used car dealership bases: 5 billion yen (Sales/Purchase/Maintenance) × (times) 160 storefronts ＝ (equals) Net sales of 800 billion yen 25
Slide 26: New car dealership net sales target of 200 billion yen
Dealerships Net sales of new car dealership bases: 2 billion yen (Sales/Purchase/Maintenance) × (times) ＋ M&A 100 storefronts ＝ (equals) Net sales of 200 billion yen 26
Slide 27: Net Sales of 1 Trillion Yen in 2030
Net Sales of 1 Trillion Yen in 2030 Net sales of used car dealership bases: 800 billion yen Net sales of new car dealership bases: 200 billion yen Total net sales: 1 trillion yen 27
Slide 28: Contents
Contents 1. Results Overview 2. Fiscal 2018 Initiative Progress 3. Reference Information 28
Slide 29: 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 FY2013 8,134 9,492 8,974 10,634 FY2013 473 590 407 820 Fiscal 2014 FY2014 8,830 7,728 8,532 11,
Slide 30: 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 3,092 3,325 2,385 2,729 Quarter 83 152 56 93 Fiscal 2014 Cumulative 3,092 6,417 5,949 6,365 Fiscal 2014 Cumulative 83 224 151 174 YoY 146.5% 179.6% 108
Slide 31: Reference Information
Reference Information (¥ million, %) (¥ million, %) Car sales‐related Maintenance‐related Net sales Q1 Q2 Q3 Q4 Total Net sales Q1 Q2 Q3 Q4 Total (1) Fiscal 2013 7,404 8,602 8,228 10,155 34,390 (1) Fiscal 2013 127 143 136 149 556 (2) Fiscal 2014 11,123 10,263 9,765 12,404 43,556 (2) Fiscal 2014 163
Slide 32: Reference Information
Reference Information (¥ thousand) Consolidated Q1 Q2 Q3 Q4 Full year statements of income Fiscal 2016 Fiscal 2017 YoY Fiscal 2016 Fiscal 2017 YoY Fiscal 2016 Fiscal 2017 YoY Fiscal 2016 Fiscal 2017 YoY Fiscal 2016 Fiscal 2017 YoY Net sales Gross profit Selling, general and administrative expenses O
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 agency