Nextage Co., Ltd. · TSE:3186
Nextage — Q1 FY2023 Earnings Presentation
29 slides from Nextage's earnings presentation, Apr 3, 2023
Slide 1: Fiscal 2023 1st Quarter Financial Results Presentation
Financial Results Presentation Fiscal 2023 1ｓｔ Ｑｕａｒｔｅｒ Financial Results Presentation April 3, 2023 NEXTAGE Co., Ltd. (3186)
Slide 2: Contents
Contents １．Results Overview ２．Reference Information 2
Slide 3: Fiscal 2023 Business Performance (Q1)
Fiscal 2023 Business Performance (Q1) (Millions of yen) Percent FY2023 Comparison FY2022 FY2022 FY2022 FY2022 FY2023 of net YoY Q1 with plan Q1 Q2 Q3 Q4 Q1 sales Net sales 117,937 100.0％ 144.7％ 23.6% 81,507 100,825 106,997 128,786 117,937 Gross profit 17,680 15.0％ 112.7％ － 15,694 17,786 20,339 20,20
Slide 4: Market Environment (the Number of Car Registrations)
Market Environment (the Number of Car Registrations) ■ Used car registrations (December 2022 to February 2023) Results Results Comparison Results Comparison Number of units in FY2023 in FY2022 with FY2022 in FY2021 with FY2021 Ordinary passenger cars 557,090 587,968 94.7% 636,154 87.6% Kei (light) c
Slide 5: FY2023 Comparison of Existing-Stores (Q1)
FY2023 Comparison of Existing-Stores (Q1) ■ Changes in net sales, gross profit and operating income of existing-stores Net Sales Gross Profit Operating Income (Millions of yen) YoY (Millions of yen) YoY (Millions of yen) YoY 100,000 111.6% 92.2% 10,000 70.3% 20,000 88,275 79,132 75,000 14,646 7,500
Slide 6: 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：22.2％ 15,000 14,511 （FY2023 forecast：160,000 vehicles） 13,000 11,803 11,000 9,206 9,000 8,989 8,598 8,460 8,309 7,664 8,134 7,789 8,110 7,000 7,242 7,629 7,174 5,000
Slide 7: Changes in Key KPI Status
Changes in Key KPI Status Retail car sales Vehicle purchases (Number of units) (Number of units) 40,000 35,520 43,157 40,000 25,750 30,970 YoY YoY 20,000 137.9％ 139.4％ 20,000 0 0 Fiscal 2022 Q1 Fiscal 2023 Q1 Fiscal 2022 Q1 Fiscal 2023 Q1 Vehicle safety inspections Net premiums written (Number of un
Slide 8: 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 80000 69,201 25000 Net sales Net sales 25000 (Millions of yen) YoY 34,600 YoY 48,506 142.7％ 162.6％ 21,281 Gross profit Gross pro
Slide 9: Gross Profit Margin and SG&A Expenses Analysis
Gross Profit Margin and SG&A Expenses Analysis 【A. Current Conditions】 ■ Changes in gross profit margin and selling, general and administrative expenses (consolidated) Gross profit margin Medium-Term Selling, general and administrative expenses Management Plan 20.0% 19.5% 19.3% 18.4% 18.2% Operating
Slide 10: Analysis of Gross Profit Margin Decline
Analysis of Gross Profit Margin Decline 【A. Current Conditions】 ■ 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） Sal
Slide 11: Impact of Changes in the Used Car Market in Japan
Impact of Changes in the Used Car Market in Japan 【Ｂ. Issues】 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 an
Slide 12: Monthly Vehicle Registrations and AA Market Trends
Monthly Vehicle Registrations and AA Market Trends 【Ｂ. Issues】 ■ Changes in the number of vehicle registrations and average contract unit price of AA (Thousands of yen) The number of new passenger vehicle registrations in Feb. 2023 Toyota vehicles： YoY 155.4％ 1,000 150% Suzuki vehicles： YoY 149.0％ 8
Slide 13: Profit per Unit at Used Vehicle Dealerships by Components
Profit per Unit at Used Vehicle Dealerships by Components 【Ｂ. Issues】 ■ Changes in profit per unit at used vehicle dealerships by components ① Vehicle body ② Accessories ③ Financial products （％） （％） （％） 300 160 160 250 140 140 120 120 200 100 100 150 80 80 100 60 60 50 40 40 0 20 20 -50 0 0 FY2019 F
Slide 14: Profit per Unit at Used Vehicle Dealerships by Components
Profit per Unit at Used Vehicle Dealerships by Components 【Ｂ. Issues】 ■ 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 0 120 loss 100 -100 80 -200 60 -300 40 -400 20 loss -500
Slide 15: Product Management Status
Product Management Status 【Ｃ. Countermeasures】 ■ 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 39.7 30.6 45.2 47.3 50% 47.1 41.3 39.6 0% Q1 (Dec
Slide 16: Status of Unit Price
Status of Unit Price 【Ｃ. Countermeasures】 ■ Composition of products by unit sales price ■ Introducing digital price boards （excluding new vehicle dealerships） 100% 41.2 33.1 50% 25.3 32.3 0% FY2022 Q4 FY2023 Q1 within 1 million yen within 1.5 million yen within 2 million yen over 2 million yen Count
Slide 17: Product Status: March Results After Measures
Product Status 【Ｄ. March Results After Measures】 Changes in inventory turnover days Supplier composition of retail sales （excluding new vehicle dealerships） （excluding new vehicle dealerships） （unit：day） 100% vendor/others 40 45.4 46.1 59.3 Trade-in/ 50% Purchased 41.5 40.1 AA 38.5 40.2 26.8 30 0% F
Slide 18: Profit per Unit at Used Vehicle Dealerships: March Results After Measures
Profit per Unit at Used Vehicle Dealerships 【Ｄ. March Results After Measures】 ■ Changes in Disposal of backlogs and inventory replacement of profit per unit at used vehicle dealerships 0% -100% -200% loss averted -300% -400% FY2019 FY2020 FY2021 FY2022 FY2022 FY2022 FY2023 FY2023 Q3 Q4 Q1 Mar. ※comp
Slide 19: Merchandise Variation Analysis
Merchandise Variation Analysis (Millions of yen) 72,563 Mainly due to change in product mix from high unit price to low unit price 57,509 19
Slide 20: Operating Income Analysis
Operating Income Analysis (Millions of yen) YoY ＋39.0％ Number of stores at the end of 1Q YoY＋34.9％ YoY ＋54.4％ YoY ＋56.7％ 4,382 YoY ＋34.7％ The number of purchased vehicles Number of employees YoY ＋39.4％ at fiscal year end The number of retail sales YoY ＋43.4％ YoY＋37.9％ 1,769 20
Slide 21: Change in the Number of Locations
Change in the Number of Locations ■ Change in the number of locations （unit: locations） Standalone vehicle purchasing store 160 New vehicle dealership Used car dealership 144 140 123 120 105 100 100 80 76 65 63 60 51 38 39 40 27 24 24 20 21 21 21 20 12 0 FY2020 FY2021 FY2022 FY2023 Q1 FY2023 plan FY
Slide 22: Contents
Contents １．Results Overview ２．Reference Information 22
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: Consolidated Balance Sheet
Consolidated Balance Sheet ■ Consolidated balance sheet （situations of assets and liabilities） As of the end of fiscal 2023 Q1 （millions of yen) As of the end of fiscal 2022 （millions of yen) Current assets Current 流動負債 Current assets Current liabilities 94,544 111,157 liabilities 40,874 52,723 (Cas
Slide 25: 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 26: 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 27: 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 28: 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 29: 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