Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — FY2021 Earnings Presentation
63 slides from Autobacs Seven's earnings presentation, May 11, 2021
Slide 1: Results for the year ended March 31, 2021
Results for the year ended March 31, 2021 May 11, 2021 AUTOBACS SEVEN CO., LTD.
Slide 2: Table of Contents
Table of Contents Consolidated Results of FY March 2021 and Forecasts for FY March 2022 1. Overview of Business Results P.３ 2. Domestic AUTOBACS Business P.9 3. Overseas Business P.13 4. Car dealership ,BtoB and Internet Business P.15 5. Forecasts for FY March 2022 P.17 Response to COVID-19 and Five
Slide 3: Consolidated Results of FY March 2021 and Forecasts for FY March 2022
Consolidated Results of FY March 2021 and Forecasts for FY March 2022 Officer Finance & Accounting and PR & IR Tomoaki Ikeda 2
Slide 4: FY March 2021 Consolidated P/L
Overview of Business Results FY March 2021 Consolidated P/L Although sales remained relatively flat due to COVID-19, operating income increased significantly thanks to a rise in the profit ratio and a reduction in SG&A. In the Domestic AUTOBACS Business, sales fell in April and May due to the COVID-
Slide 5: Highlights of Consolidated Financial Results for FY March 2021
Overview of Business Results Highlights of Consolidated Financial Results for FY March 2021 [Domestic] ✓ Sales decreased in April and May due to the impact of the COVID-19 pandemic but recovered from June, with the result that they were on par with the year-ago level for the full year. ✓ In December
Slide 6: FY March 2021 Consolidated P/L Five Years Transition
Overview of Business Results FY March 2021 Consolidated P/L Five Years Transition Highest income in the past five years （Billion Yen） Sales （Billion Yen） Operating income 225.0 12.0 220.0 10.0 215.0 8.0 210.0 6.0 221.4 220.4 10.5 205.0 4.0 213.8 7.2 7.4 7.5 212.3 5.8 200.0 2.0 204.0 0 195.0 0.0 FY M
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 substantially thanks to the significant contribution of the domestic AUTOBACS business. （Million Yen） FY March 2021 2020 FY March Amounts are rounded down. % of Net Sales and YoY comparison
Slide 8: FY March 2021 Sales and profits by Reporting Segments
Overview of Business Results FY March 2021 Sales and profits by Reporting Segments Sales Operating profit (loss) （Million Yen） (Million Yen） 200,000 25,000 179,188 177,937 20,000 14,614 FY March 2020 FY March 2020 18,756 150,000 15,000 FY March 2021 FY March 2021 10,000 100,000 5,000 50,000 38,639 4
Slide 9: Segment Information
Overview of Business Results Segment Information （Million Yen） FY March 2021 FY March 2020 YoY Summary Sales 177,937 179,188 -0.7% From June, sales recovered due to an improvement in the frequency of use of Domestic Gross profit 58,891 56,258 +4.7% cars. From December to January, demand for winter s
Slide 10: FY March 2021 Retail Sales in Total AUTOBACS Group Stores
Domestic AUTOBACS Business FY March 2021 Retail Sales in Total AUTOBACS Group Stores Retail sales including FCs: 267.0 billion yen (0% YoY) (Billion Yen) 266.8 267.0 Result YoY 300 Second hand goods 4.0 4.0BY -15.8％ 4.7 & Fuel 250 19.7 20.4 27.6 27.1 14.7BY +3.5％ Statutory safety 200 inspection 651,
Slide 11: FY March 2021 YoY Change of Domestic AUTOBACS Store
Domestic AUTOBACS Business FY March 2021 YoY Change of Domestic AUTOBACS Store [Same store basis (YoY)] Sales: +0.2%, Number of purchasing customers: +1.1% Same store sales and number of purchasing customers at domestic AUTOBACS-chain stores (YoY) 30% Sales of FY March 2021 0% -30% 30% Number of pur
Slide 12: FY March 2021 Sales Variance by Merchandise
Domestic AUTOBACS Business FY March 2021 Sales Variance by Merchandise Sales changes by merchandise category(YoY change in amount) （Million Yen） 3,000 Car Leisure Accessories Motorcycle 2,000 1,843 1,806 Batteries Wheels Goods Items Services (excl. Car Electronics Maintenance) Motor Sports Inspectio
Slide 13: FY March 2021 Profit Improvement of Store Subsidiaries
Domestic AUTOBACS Business FY March 2021 Profit Improvement of Store Subsidiaries Operating income of store subsidiaries （Million Yen） 2,500 2,136 2,000 1,633 1,610 1,475 1,500 1,000 500 270 0 FY March 2017 FY March 2018 FY March 2019 FY March 2020 FY March 2021 Improved index of store subsidiary 45
Slide 14: Overseas Business: Change in Sales and Operating Income
Overseas Business Change in Sales and Operating Income Operating loss decreased due to the strengthening of the wholesale business and the reduction of SG&A. (Billion Yen) (Million Yen) Sales Major factors reducing operating Operating income loss: strengthening of the wholesale 15 business and the r
Slide 15: FY March 2021 Performance by Overseas Subsidiaries
Overseas Business FY March 2021 Performance by Overseas Subsidiaries (Million Yen） France Thailand Singapore China Malaysia Australia Number of stores 10 17 2 0 4 0 Period 21/3 20/3 21/3 20/3 21/3 20/3 21/3 20/3 21/3 20/3 21/3 20/3 Net sales 5,784 6,768 329 766 1,503 1,754 778 965 40 65 1,689 1,378
Slide 16: Car Dealership, BtoB and Internet: Change in Sales and Operating Income
Car Dealership, BtoB and Internet Business Change in Sales and Operating Income Sales increased despite COVID-19, operating loss remained flat. Major factor: (Million Yen) (Billion Yen) Car dealership and BtoB remained strong; SG&A expense increased for investment for future Operating Sales mainly i
Slide 17: FY March 2021 Overview of Business Results
Car Dealership, BtoB and Internet Business FY March 2021 Overview of Business Results Car Dealership Business ✓ Earnings improved as a result of reforming the management of Motoren Tochigi Co., Ltd. in June. ✓ Not only new and used car sales but also services were promoted. ✓ Sales fell significantl
Slide 18: Forecasts for FY March 2022
Forecasts for FY March 2022 17
Slide 19: FY March 2022 Expectations for the Business Environment
Forecasts for FY March 2022 FY March 2022 Expectations for the Business Environment Positive Factors ✓ Strong demand will continue in some merchandise against the backdrop of increased frequency of car use in COVID-19 (car washing supplies/scratch repair related/car interior accessories/batteries) ✓
Slide 20: FY March 2022 Forecast for Consolidated Result
Forecasts for FY March 2022 FY March 2022 Forecast for Consolidated Result FY March FY March 2022 (Forecast) 2021 YoY （Billion Yen） 1st Half YoY 2nd Half YoY Full year Up&Down YoY Net sales 220.4 104.9 +5.2% 121.6 +0.7% 226.5 +6.5 +2.7% Gross profit 73.2 35.2 +6.2% 40.6 +1.4% 75.9 +2.6 +3.6% Gross p
Slide 21: FY March 2022 Forecast for Segment
Forecasts for FY March 2022 FY March 2022 Forecast for Segment FY March 2022 (Forecast) FY March 2021 (Million Yen) 1st Half 2nd Half Full-year YoY Domestic Sales 177,937 78,050 91,360 169,410 -4.8% AUTOBACS Operating Business 18,756 6,600 10,800 17,400 -7.2% income Sales 10,077 6,140 6,060 12,200 +
Slide 22: FY March 2022 Acquisition and Cancellation of Own Shares
Forecasts for FY March 2022 FY March 2022 Acquisition and Cancellation of Own Shares Acquisition of own shares Aggregate number Type of shares to be Aggregate purchase Acquisition period of shares to be acquired price of shares acquired From May 11, to Shares of common Up to Up to September 30, 2021
Slide 23: FY March 2022 Dividends and Share Buyback
Forecasts for FY March 2022 FY March 2022 Dividends and Share Buyback Dividends per share Dividends and Share buyback （Yen） （Billion Yen） 1st Half 80 12 Amount of share buyback 2nd Half 70 10 Dividends paid 60 8 50 30 30 30 40 6 2.08 3.00 30 4 20 30 30 30 2 4.82 4.79 4.79 10 0 0 FY March FY March FY
Slide 24: FY March 2022 Capital Expenditures & Depreciation
Forecasts for FY March 2022 FY March 2022 Capital Expenditures ＆ Depreciation Capital Expenditures Depreciation （Billion Yen） （Billion Yen） 6 7 4.84 6 5 4.61 3.99 5 4 4.41 3.58 3.65 4.16 4.03 4.20 3.42 3.85 4 3.72 3 3 2 2 1 1 0 0 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2017/3 2018/3 2019/3 2020/3
Slide 25: Response to COVID-19 and Five-year Rolling Plan
Response to COVID-19 and Five-year Rolling Plan Representative Director and Chief Executive Officer Kiomi Kobayashi 24
Slide 26: Response to COVID-19
Response to COVID-19 Response to COVID-19 Protect the health of customers, business partners, and employees ～Don't get infected and don’t infect others～ Keep cars safe and secure ～Cars are an important infrastructure for our lives ～ Support the franchisees’ operation ～From financial and operational
Slide 27: Efforts to Prevent the Spread of COVID-19
Response to COVID-19 Efforts to Prevent the Spread of COVID-19 Stores Offices Limited business mainly for maintenance Prohibition of coming to the office Shorter business hours (working from home) If it is unavoidable for employees to come to At the time of work for business continuation or store su
Slide 28: Efforts to Prevent the Spread of COVID-19
Response to COVID-19 Efforts to Prevent the Spread of COVID-19 Hygiene control at stores and service bays in AUTOBACS (examples) Encouraging customers to Reducing contacts with Carefully sterilizing waiting leave a space when they customers at the register rooms, handrails, displays stand in line an
Slide 29: COVID-19-Related Support for Franchisees
Response to COVID-19 COVID-19-Related Support for Franchisees Support measures for franchisees (exemption from fees, deferment of payments, loans and support for store operation) Support for franchisees Support for stores Reduction or exemption of expenses for sales promotion Store guidance ・Exempti
Slide 30: Five-Year Rolling Plan
Five-Year Rolling Plan Five-Year Rolling Plan AUTOBACS has always been committed to providing customers with the best solutions for their car lifestyles and creating a rich and healthy automotive society. 29
Slide 31: Our Goal: Response to changes in environment and customer needs
Five-Year Rolling Plan 1. Our Goal Through Five-Year Rolling Plan ◼ Background for prompting the Five-Year Rolling Plan • Response to changes in the external environment • Response to diversified customer needs 30
Slide 32: Our Goal
Five-Year Rolling Plan 1. Our Goal Through Five-Year Rolling Plan ◼ Our Goal Provide products and services tailored to customer needs with a sense of speed. 31
Slide 33: To realize our goal
Five-Year Rolling Plan 1. Our Goal Through Five-Year Rolling Plan ◼ To realize our goal Promote the expansion of contact points with customers through the establishment and cooperation of networks 32
Slide 34: Progress in FY March 2021: Examples of Efforts
Five-Year Rolling Plan 2. Progress in FY March 2021: Examples of Efforts (1) Strengthening of businesses (2) Development of business platforms (3) Creation of networks 33
Slide 35: Strengthening of businesses: Domestic AUTOBACS business
Five-Year Rolling Plan 2. Progress in FY March 2021: Examples of Efforts (1) Strengthening of businesses ◼ Domestic AUTOBACS business • Continued to provide safe and secure through tires, statutory safety inspection, maintenance service and store renovation • People's review of the value of cars in
Slide 36: Strengthening of businesses
Five-Year Rolling Plan 2. Progress in FY March 2021: Examples of Efforts (1) Strengthening of businesses Strengthening of the wholesale business • Despite being affected by the lockdown, SG&A reduction have decreased operating loss in Overseas Business total. • Promoted the development of new custom
Slide 37: Development of business platforms
Five-Year Rolling Plan 2. Progress in FY March 2021: Examples of Efforts (2) Development of business platforms Human resources base IT base Information base • Introduction of the • Update the style of • Development of master company system communication with data (searching for (cultivation of young
Slide 38: Creation of networks
Five-Year Rolling Plan 2. Progress in FY March 2021: Examples of Efforts (3) Creation of networks A comprehensive business Strategic alliance with Car Frontier alliance agreement was Sales of maintenance pack for Co., Ltd., a company affiliated with concluded with the BS-summit other company Mitsubi
Slide 39: Initiatives in FY March 2022: Policy
Five-Year Rolling Plan 3. Initiatives in FY March 2022 (1) Policy ◼ Further strengthening of creation of a system to welcome customers in COVID-19 ◼ Continuation of efforts to increase contact points with customers ◼ Strengthen active response to environmental changes 38
Slide 40: Initiatives in FY March 2022: Measures for each business
Five-Year Rolling Plan 3. Initiatives in FY March 2022 (2) Measures for each business Measures • Continued to promote the company system and strengthen on-site capabilities (human resources) • Promoted opening, remodeling and renovating of stores Domestic AUTOBACS • Strengthened cooperation between
Slide 41: Initiatives in FY March 2022: Others
Five-Year Rolling Plan 3. Initiatives in FY March 2022 (3) Others ◼ Promotion of ESG and SDGs • Begin efforts in January 2021 as a company- wide project. • Strive to create new businesses by resolving social issues. ◼ Strengthening of the monitoring system of management • Promotion of management and
Slide 42: Promotion of ESG and SDGs
Five-Year Rolling Plan 3. Initiatives in FY March 2022 ◼ Promotion of ESG and SDGs Formulate CSR Aware of national and international standards policy and initiatives Contribution to mobile Obtained ISO14001 Internal Established Create an integrated culture Strengthening penetration of environmental
Slide 43: Promotion of ESG and SDGs: Materiality
Five-Year Rolling Plan 3. Initiatives in FY March 2022 ◼ Promotion of ESG and SDGs Launched a project led by Chief Executive Officer (January 2021) Importance to stakeholders Present Recognizing social issues (Social) Materiality Reexamination of materiality Redefining the value creation story Impor
Slide 44: Our ideal: Professional & Friendly
Five-Year Rolling Plan 3. Initiatives in FY March 2022 Our ideal Professional & Friendly 1 ３ Creation of businesses that solve social issues Growing organizations and Develop new businesses that contribute human resources to SDGs/open innovation/deal with EV etc. 2 Develop next- generation human Enh
Slide 45: Activities to Solve Social Issues
Five-Year Rolling Plan Activities to Solve Social Issues ◼ Future Generations & Car Culture ◼ Protecting the Environment Pavilion opened at KidZania Tokyo and Resource saving such as simplified KidZania Koshien packaging of products (resource saving) ◼ Diversity & Human Resources ◼ Health Management
Slide 46: Realize the Solution of Social Issues Using Digital Technology
Five-Year Rolling Plan Realize the Solution of Social Issues Using Digital Technology Car sharing Rapidly deploy a variety of services based on Ride sharing local requirements using LPWA and other communication infrastructure and DX platforms Driver sharing Vermin trap monitoring disaster prevention
Slide 47: APPENDIX
Five-Year Rolling Plan APPENDIX 46
Slide 48: Five-Year Rolling Plan: Strategic alliance with Car Frontier
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX Automotive⁻ related Goods Sales Network Efforts to create networks ◼ Strategic alliance with Car Frontier Co., Ltd., a company affiliated with Mitsubishi Corporation (May 1, 2020) • Established a network leveraging more than 4,700 locations of
Slide 49: Five-Year Rolling Plan: BS-summit alliance
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX Next－Generation Service Pit Maintenance Network Network Efforts to create networks ◼ A comprehensive business alliance agreement was concluded with the BS-summit* business cooperative (August 20, 2020) • About 600 AUTOBACS stores + 380 BS-summi
Slide 50: Five-Year Rolling Plan: Maintenance pack service
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX Service Pit Network Efforts to create networks ◼ Adding new service menus to AUTOBACS Group Maintenance Pack (December 15, 2020) • Provide AUTOBACS’ car maintenance service packages to used car dealers and car leasing companies who have problem
Slide 51: Five-Year Rolling Plan: Acquisition of TA Import
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX Multi-Dealer Network Efforts to create networks ◼ Acquire all shares in TA Import Co., Ltd. that operates authorized dealers of Audi. (April 1, 2021) • Promoting the creation of contact points with premium car users of imported cars, etc. as pa
Slide 52: Five-Year Rolling Plan: Acquisition of Joyful Shaken & Tire Center
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX Automotive⁻ Next－Generation Service Pit related Goods Sales Network Maintenance Network Network Efforts to create networks ◼ Acquired all shares in Joyful Shaken & Tire Center Co., Ltd., a nonconsolidated subsidiary of Joyful Honda Co., Ltd. (A
Slide 53: Five-Year Rolling Plan: Business alliance with Nissan
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX Automotive⁻ related Goods Sales Network Efforts to create networks ◼ Formed a business alliance with Nissan (April 20, 2021) • Formed a business alliance with Nissan crossing the boundaries between industries to improve customer convenience and
Slide 54: Domestic AUTOBACS Business
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX 1) Domestic AUTOBACS Business Effort to strengthen the businesses • Increased number of customers by expanding demand by reviewing the value of cars • Application updated on October 19, 2020. • Strengthening next-generation maintenance services
Slide 55: Overseas Business
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX 2) Overseas Business Effort to strengthen the businesses • Downsizing of the retail business: Transfer some of shares in SAB, a subsidiary in Thailand, to make it an equity-method affiliate. • Strengthening of the wholesale business: Expansion
Slide 56: Online Alliance Business
Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX 3) Online Alliance Business Effort to strengthen the businesses • Renovation of the official AUTOBACS shopping site (August 1, 2020) Renovated August 1, 2020 • Site sales: 250% of the year-ago level • Car navigation units and dashcams are drivi
Slide 57: Non-Consolidated and Domestic Store Subsidiaries
Other Documents Non-Consolidated and Domestic Store Subsidiaries Non-Consolidated：decline in revenue increase in profit Domestic Store Subsidiaries：increase in revenue and profit Non-consolidated Domestic Store Subsidiaries （Million Yen） Results YoY Results YoY Net Sales 155,082 -1,410 58,121 +1,921
Slide 58: Automobile purchase and sales business
Other Documents Automobile purchase and sales business Total 29,407cars YoY -6.8% BtoB Sales Retail Details No. of cars sold Details No. of cars sold To AUTOBACS 1,090 Used cars 7,105 SEVEN Sales to AA via AUTOBACS 4,599 New cars 3,487 SEVEN Direct sales 13,126 from stores BtoB total 18,815 Retail t
Slide 59: Store Openings and Closings
Other Documents Store Openings and Closings FY March 2021 Domestic No. of 1st Half No. of 2nd Half No. of stores at stores at stores March 31, New S&B Close Sep 30, New S&B Close stores at March 31, 2020 R/L 2020 R/L 2021 AUTOBACS 490 +1 +1/-1 -3 488 +2 +1/-1 490 Super AUTOBACS 74 74 74 AUTOBACS Sec
Slide 60: Balance Sheet: Assets
Other Documents Balance Sheet: Assets 172.7BY 175.9BY 180.5BY 209.8BY 187.9BY （Billion yen） 35.8 Cash and deposits 38.9 28.7 34.9 Trade notes 28.2 and accounts 38.9 receivable 21.9 24.5 23.5 28.3 Merchandise 20.6 Accounts 20.7 18.3 20.2 20.1 receivable 29.0 21.9 Other 18.9 14.5 16.3 current assets 8
Slide 61: Balance Sheets: Liabilities and Equity
Other Documents Balance Sheets: Liabilities and Equity 172.7BY 175.9BY 180.5BY 209.8BY 187.9BY （Billion yen） Accounts 32.9 payable －other 13.8 Short-term 15.3 5.6 5.8 borrowings 12.4 13.1 1.8 6.3 6.4 19.8 15.1 Accounts 12.2 13.9 11.9 payables 9.5 11.7 7.8 8.5 8.4 2.7 2.5 Other short-term 0.9 2.0 1.7
Slide 62: Cash Flows
Other Documents Cash Flows Consolidated cash flows (Million Yen) 20,000 17,163 End of March 2021 15,000 Cash and cash equivalents: 38.9BY 10,000 （End of March 2020: 28.0BY） 5,000 0 -309 -5,000 -6,085 -10,000 Operating CF Investing CF Finanicing CF Breakdown of major investments • Investment to IT re
Slide 63: 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