Autobacs Seven Co., Ltd. · TSE:9832
Autobacs Seven — H1 FY March 2015 Earnings Presentation
41 slides from Autobacs Seven's earnings presentation, Oct 31, 2014
Slide 1: Results for the First Six Months Ended September 30, 2014
Translation ANALYST MEETING Results for the First Six Months Ended September 30, 2014 October 31, 2014 Setsuo Wakuda Representative Director and CEO AUTOBACS SEVEN CO., LTD.
Slide 2: Contents
Contents １．Results for the First Six Months Ended September 30, 2014 ２．Revision of Forecast of FY March 2015 and Measures for the Second Half of FY March 2015 1
Slide 3: Results for the First Six Months Ended September 30, 2014
１．Results for the First Six Months Ended September 30, 2014 2
Slide 4: Financial Results (Six Months Ended Sep 30, 2014)
Financial Results (Six Months Ended Sep 30, 2014) (Billion Yen) Six months ended September 30, 2014 Six months Previously Change ended Actual YoY change September 30, announced forecast from results ratio 2013 (July 31, 2014) forecast Net sales 98.1 98.0 -5.5% -0.1 103.7 Gross margin 31.6 30.6 -11.7
Slide 5: Review of the First Six Months of FY March 2015
Review of the First Six Months of FY March 2015 1. First quarter: Backlash against the last-minute demand before consumption tax hike ２．Second quarter: Sluggish new car sales, rising gasoline prices, unseasonable weather and stagnant growth in consumption ３．Implementation of additional sales promoti
Slide 6: Results of Parent Company and Store Subsidiaries
Results of Parent Company and Store Subsidiaries (Million Yen) Domestic store Non-consolidated subsidiaries FY March 2015 Q1 Q2 Q1 Q2 Results YoY Results YoY Results YoY Results YoY Net sales 39,312 - 6.2% 39,350 -1.0% 14,700 -17.6% 15,801 -12.5% Gross margin 7,587 -13.6% 8,412 -3.1% 5,486 -18.5% 5,
Slide 7: Segment Analysis for Operating Income
Analysis for Operating Income Domestic Retail sales Total store basis: -7.2% Same store basis: -8.6% Operating income (Billion yen) Amount Major drivers of variance (yoy) Non-consolidated 2.99 -2.43BY Net sales -3.0BY (-3.7%) Gross Profit -1.46 (20.3% (last year 21.4%)) ・Decline in gross margin due
Slide 8: Domestic Retail Sales
Domestic Retail Sales Retail sales including FCs*: 119.8 billion Yen (- 7.2% YoY) (Billion Yen) 150 129.1 Fuel & second-hand goods: 119.8 2.3 billion Yen (+6.8% YoY） 2.2 8.1 2.3 Safety Inspection and maintenance service: 9.6 7.8 7.8 billion Yen (-3.9% YoY) 10.4 267 thousand cars (-3.5% YoY) 100 Numb
Slide 9: Monthly Sales Trend by Merchandise (all stores)
Monthly Sales Trend by Merchandise (all stores) (Million Yen) 600 Tires Recovery from the backlash Inspection & Maintenance against the tax hike 400 New & Used Cars Car Electronics 200 Car Accessories 0 -200 -400 -600 Backlash against the last- minute demand before Declining demand for automotive go
Slide 10: Measures in the First Half (Car Parts & Accessories)
Measures in the First Half (Car Parts & Accessories) Promotion of private brand merchandising strategy ・Launch of a new private brand “AQ.” ・Release of new PB and AUTOBACS exclusive brand tires Change of targets to forward direct mail for the summer selling season ⇒Store visits and shopping rati
Slide 11: Example of Display of New PB Items (car mirror)
Example of Display of New PB Items (car mirror) Before After 10
Slide 12: Measures in the First Half (E-commerce)
Measures in the First Half (E-commerce) Producing results in terms of acquiring new customers and selling merchandise not sold at stores. Net sales for the first half of FY March 2015 : 590 million yen (up 2.3% YoY) Direct delivery to customers: 240 million Yen Store sales: 340 million yen ・Sales ch
Slide 13: Progress of New Store Openings
Progress of New Store Openings Store openings from April to October, 2014 Building with furniture Store name Location Owner of store Opening date and equipment 1 AUTOBACS AISAI PLAZA Aichi FC Apr 24, 2014 2 AUTOBACS HITACHI OMIYA Store Ibaraki Subsidiary Jun 13, 2014 AUTOBACS Tire Shop NUMAZU 3 Shiz
Slide 14: Overseas Business
Overseas Business Implemented scrap-and-build methods to focus on profitability at existing store-opening area Thailand: Closed one store Opened one store Few more stores are planned to be opened in the 2nd half China: Closed one store One store is planned to be opened in Shanghai in the 2nd hal
Slide 15: Performance by Country
Performance by Country FRANCE CHINA SINGAPORE THAILAND Number of stores at Sep. 30, 2014 11 0 3 3 -including FC stores- Same store sales -3.1% -35.1% -5.6% -21.3% -including FC stores- six months six months six months six months six months six months six months six months Period ended ended ended en
Slide 16: Reorganization of Store Subsidiaries
Reorganization of Store Subsidiaries Reorganization of Domestic Store Subsidiaries Measures Contents Transfer of shares in - Transfer of all shares in a store subsidiary in Kanagawa Store Subsidiaries area to a franchisee (include transfer of four stores) Transfer of store - Transfer of a store in T
Slide 17: Revision of Forecast of FY March 2015 and Measures for the Second Half
２．Revision of Forecast of FY March 2015 and Measures for the Second Half of FY March 2015 16
Slide 18: Revised Forecast of FY March 2015
Revised Forecast of FY March 2015 (Billion Yen) Second half of FY March 2015 Full year of FY March 2015 Revised Revised Initial Initial forecast Difference YoY forecast Difference YoY forecast forecast (Oct 29, 2014) (Oct 29, 2014) Net sales 123.7 118.6 -5.1 -7.3% 228.4 216.6 -11.8 -6.5% Gross margi
Slide 19: Business Environment and Sales Initiatives
Business Environment and Sales Initiatives Business environment Buying motivation of consumers is weak. However, the Group expects last-minute demand at the end of the fiscal year due to changes in the tax system related to automobiles. Sales initiatives ・In sales of automotive goods and services, t
Slide 20: Basic Policies for the Second Half of FY 2015
Basic Policies for the Second Half of FY 2015 Innovative changes in business from the medium- and long-term perspective are priority issue Promote initiatives in line with the medium- term business plan, while responding to short- term changes in the market. Innovative change to an “automotive one
Slide 21: Initiatives of the Medium-Term Business Plan
Initiatives of the Medium-Term Business Plan Business Fields Initiatives for the Second Half of FY 2015 Car Goods and (1) Expanding new PB merchandise lineup Services Strengthening efforts to improve merchandising power and gross margin (2) Enhancing competitiveness mainly in PB and tires Safety Ins
Slide 22: Mid-term Business Plan (Overseas Business)
Mid-term Business Plan (Overseas Business) FY March 2015 FY March 2016 – FY March 2018 From income growth at a single store Policy Groundwork to multi-store and other business expansion Existing • Closure of unprofitable • Review of prices and the gross store- stores or scrap and build margin openin
Slide 23: New Efforts in Overseas Business
New Efforts in Overseas Business Establishing a subsidiary in Malaysia ・Establishing a subsidiary in Johor for the purpose of opening new stores. ・Business commencement: March 2015 (planned) Entering the EC business in China Open the stores on T-mall Global of Alibaba Group Shopping site of T-mall G
Slide 24: Shareholders Return
Shareholders Return Dividend of profit: Unchanged according to the policy (DOE of 3% or more) Share buyback: Completed buyback announced in May Dividends per share Dividends and share buyback (Yen) (Billion Yen) 80 14 12.0 12 60 10 10 10.1 １０ 9.5 8 7.2 30 4.6 5.1 40 25 27 6 20 4 27 27 30 4.8 4.9 5.0
Slide 25: Today's Message
Today's Message • In the first six months, the backlash against the consumption tax hike and unseasonable weather had a significant impact, but income declined further with an insufficient response to changes in the business environment. • Based on the assumption that the automotive aftermarket indu
Slide 26: 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 estimates made in accordance with information currently available. Actual results may differ materially from forecasts due to suc
Slide 27: APPENDIX
APPENDIX ening aa." Qf) AUTOBACS 26
Slide 28: Quarterly P/L
Quarterly P/L (FY March 2011) (Billion Yen) 1st Quarter of FY 2015 2nd Quarter of FY 2015 1st Half of FY 2015 Result YoY Result YoY Result YoY Net sales 48.5 -7.5% 49.6 -3.4% 98.0 -5.5% Gross margin 14.8 -13.0% 15.7 -10.5% 30.6 -11.7% % of Sales 30.6% － 31.8% － 31.2% － SG&A 15.0 -0.9% 15.1 +0.1% 30.
Slide 29: Sales Variance by Merchandise
Sales Variance by Merchandise 【Same store basis】 Sales: -8.6% YoY, Number of customers: -6.7% YoY (Million Yen) Retail sales ups and downs by merchandise category 500 (for six months ended Sep. 30, 2014, YoY change in amount, total store basis) 0 -4 -19 -158 -287 -331 -500 -367 Accessories Motorcycl
Slide 30: Consolidation Adjustments
Consolidation Adjustments Consolidation Adjustments (Million Yen) Six months ended Six months ended September 30, 2014 September 30, 2013 Operating Income for segment total 800 4,644 Elimination of Intersegment transaction (Income of subsidiaries for supporting (215) (80) functions, etc.) Inventorie
Slide 31: Segment Information
Segment Information (Billion Yen) Six months Six months YoY Initial % to Plan ended Sep 30, ended Sep 30, Change Forecast 2014 2013 Net sales 78.66 81.66 -3.7% 78.20 +0.6% Non-consolidated Operating 2.99 5.42 -44.8% 3.30 -9.4% income Net sales 30.50 35.90 -15.0% 31.00 -1.6% Domestic store subsidiari
Slide 32: Sales Trend: Retail, Wholesale and Store Inventory
Sales Trend: Retail, Wholesale and Store Inventory （%） 【YoY change for the last 12 months】 30.0 25.0 last-minute demand before 19.2 26.8 Retail Wholesale consumption tax hike 20.0 21.0 15.0 12.3 10.0 9.0 Backlash against the 5.1 6.0 4.6 last-minute demand 5.0 8.7 0.4 0.0 -0.4 0.2 -6.1 -5.2 -5.0 -0.5
Slide 33: ASP Trends in Car Navigation Devices
ASP Trends in Car Navigation Devices ASP and Unit Sales Trends of Car Navigation Devices (YoY) 60.0% Unit sales (YoY) ASP (YoY) 53.1% 50.0% 40.0% 30.0% 20.0% 12.6% 11.5% 10.0% 5.4% -2.0% 0.8% -4.2% -4.4% 0.0% -3.6% -9.2% -9.8% -3.0% -10.0% -7.3% -3.5% -4.5% -9.0% -16.9% -10.1% -9.9% -10.7% -12.5% -2
Slide 34: Flow of Car Sales and Purchase
Flow of Car Sales and Purchase Customers Car dealers Used car dealers Auto auction Purchase Sales to FC headquarters Purchase 4,422 cars 3,571 cars B2B sales 1,554 cars Purchase Wholesale B2B sales Used car dealers Used car dealers B2C sales FC Headquarters Auto auction and auto auction (AUTOBACS SE
Slide 35: Performance Breakdown (First Half of FY 2015)
Performance Breakdown (First Half of FY 2015) Parental company (Non-consolidated) -2.87BY ↑ car sales, fuel, services Wholesale Net sales -3.7% ↓ car electronics, oil & batteries, car interior and etc. 78.7BY YoY: -3.00BY -0.13BY ↑ car sales, services, on-line store, insurance revenue Retail ↓ secon
Slide 36: Balance Sheet: Assets
Balance Sheet: Assets (Billion Yen) Total Assets 201.5 BY 186.4 BY Major items changed Cash and deposits 45.7 Cash and deposits：-5.3BY Trade notes and account 40.4 receivables 22.5 Lease investment 21.5 12 assets Marketable securities：-0.5BY 0.8 Securities 11.9 16.4 0.3 Inventories 17.7 Accounts rec
Slide 37: Balance Sheets: Liabilities & Equity
Balance Sheets: Liabilities & Equity (Billion Yen) Total Liabilities & Equity 201.5 BY 186.4BY ST borrowings: Major -1.0 BY items changed Accounts payable 17.6 ST borrowings and 4.4 corporate bond 14.9 5.6 accounts payable-trade: -3.8 BY 22 Other ST 2.3 liabilities 16.8 Income taxes payable : -0.5 B
Slide 38: Store Openings And Closings (FY March 2015)
Store Openings And Closings (FY March 2015) Domestic stores No. of FY March 2014 No. of stores at stores at Store Type March 31, 1st-half 2nd-half March 31, 2014 New S/B・R/L Close New S/B・R/L Close 2015 AUTOBACS 478 +7 +7 +2/-2 480 Super AUTOBACS 75 75 AUTOBACS Secohan Ichiba 10 10 AUTOBACS EXPRESS
Slide 39: Capital Expenditures & Depreciation
Capital Expenditures & Depreciation Capital Expenditures Depreciation (Billion Yen) (Billion Yen) 9.0 5.0 4.90 4.92 8.0 7.69 4.9 7.0 4.8 Full year 6.25 estimate 6.0 4.7 Full year estimate 4.60 4.60 4.81 4.6 5.0 4.15 4.50 4.0 4.5 3.19 4.42 3.06 3.0 4.4 2.0 4.3 1.0 4.2 0.0 4.1 March March March March
Slide 40: Performance Results Of Franchisees
Performance Results Of Franchisees Ordinary Income of Franchise Companies (Preliminary) (Million Yen) 2,000 1,000 0 244 290 -1,000 -2,000 -1,876 -3,000 -2,721 -4,000 -5,000 Total of profit-making FCs Total of profit-making subsidiaries -6,000 Total of loss-making FCs Total of loss-making subsidiarie
Slide 41: 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 estimates made in accordance with information currently available. Actual results may differ materially from forecasts due to suc
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