Slide 1: Fiscal 2016 Financial Results Presentation
Financial Results Presentation Fiscal 2016 Financial Results Presentation January 16, 2017 NEXTAGE Co., Ltd. (3186) 1
Slide 2: Contents
Contents 1. Results overview 2. Fiscal 2017 initiatives policy 3. Reference documentation 2
Slide 3: Fiscal 2016 Results
Fiscal 2016 Results Performance highlights (December 2015 to November 2016) (YoY: +38.2%) ‐ Consolidated net sales ¥87,201 million (Plan achievement rate: 101.4%) (YoY: +70.5%) ‐ Consolidated operating income ¥2,163 million (Plan achievement rate: 103.0%) (YoY: +55.7%) ‐ Consolidated ordinary income
Slide 4: Store Openings in Fiscal 2016
Store Openings in Fiscal 2016 End of Q1 Q2 Q3 Q4 End of Fiscal 2015 Fiscal 2016 Medium‐sized New store openings 3 storefronts dealerships 48 storefronts Integrations/ ‐11 38 storefronts ‐2 storefronts － (Japanese Cars) format changes storefronts General store 3 storefronts New store openings 1 store
Slide 5: Fiscal 2016 Results Overview
Fiscal 2016 Results Overview Net sales: Up 38.2% YoY with the full contribution of quasi‐existing dealerships opened last year Gross profit margin: 14.8% (up 0.1 ppt. YoY) due to improved inventory turnover rate and increase in ancillary profitability Ordinary profit: Up 55.7% YoY to achieve a new r
Slide 6: Market Environment in Fiscal 2016
Market Environment in Fiscal 2016 Domestic used car registrations Japan Automobile Dealers Association Japan Light Motor Vehicle and Motorcycle (Ordinary passenger cars) Association (Kei‐cars) Fiscal 2016 Fiscal 2015 Fiscal 2016 Fiscal 2015 Used car registrations (December 2015 – November 2016) ‐ Or
Slide 7: Sales in Fiscal 2016
Sales in Fiscal 2016 Monthly retail car sales volume and YoY comparison Fiscal 2016 sales Fiscal 2015 sales Car sales volume increased by 23.9% year on year, but the market environment remains adverse December January February March April May June July August September October November 2015 2016 201
Slide 8: Consolidated Balance Sheets – Assets
Consolidated Balance Sheets – Assets (Millions of yen) As of As of Item November November Change Remarks 30, 2015 30, 2016 Current assets 12,845 16,958 +4,113 Cash and deposits 1,816 2,228 +412 Merchandise 10,051 12,522 +2,471 Increase in inventories for new store openings Accounts receivable Increa
Slide 9: Consolidated Balance Sheets – Liabilities and Net assets
Consolidated Balance Sheets – Liabilities and Net assets (Millions of yen) As of As of Item November November Change Remarks 30, 2015 30, 2016 Current liabilities 7,339 8,686 +1,346 Accounts payable – trade 1,243 1,739 +496 Short‐term loans payable 2,900 2,483 ‐417 Transfer to long‐term loans payabl
Slide 10: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (Millions of yen) Fiscal 2015 Fiscal 2016 Change Remarks Cash flows from operating activities 975 ‐90 ‐1,065 Profit before income taxes 1,309 1,970 +660 Depreciation 554 714 +160 Expenditure on inventory associated Increase in inventories ‐1,802 ‐2,478 ‐676 with
Slide 11: Initiative Policy for Fiscal 2016
Initiative Policy for Fiscal 2016 Revise storefront composition Strengthen area‐ Storefronts with Strengthen vehicle leading specialist stores increased emphasis on purchasing maintenance earnings The Company will open The Company will secure a specialist stores that leverage The Company plans to op
Slide 12: Existing Business Model
Existing Business Model Used car business cycle 車両販売 Car sale Car navigation system Accessories Exterior coating 用品販売 Purchase sale （クロスセル） (cross selling) Until now, management resources have been Continue Once every concentrated in each year 2 years ・car sales Vehicle safety ・sales of accessories
Slide 13: Opportunity Loss in the used car business cycle
Opportunity Loss (Profit lost in the used car business cycle) Calculated from fiscal 2015 results Used car sales: 23,438 vehicles New car sales: 5,055 vehicles Vehicle safety inspection sales: 3,660 vehicles Maintenance and vehicle Insurance Purchasing safety inspection Opportunity loss Opportunity
Slide 14: New Business Model
New Business Model Changing “opportunity losses” Car Sale into “profits” Accessor Purchasing Purchase (cross s Vehicle safety inspection Inspection Maintenance Strengthen Insurance Vehicle safety inspection Maintenance Inspection (Accidents) 14
Slide 15: (1) Strengthen Area-Leading Specialist Stores
(1) Strengthen Area‐Leading Specialist Stores 15
Slide 16: Initiative (1) Strengthen Area-Leading Specialist Stores: SUV LAND Nagoya
Initiative (1) Strengthen Area‐Leading Specialist Stores “Unrivalled area‐leader strategy” New customer attraction strategy leveraging vehicle classification shift from tangible to intangible aspects specialization Propose the enjoyment of SUV ownership Start with SUVs through monthly events Midori‐
Slide 17: Initiative (1) Strengthen Area-Leading Specialist Stores
Initiative (1) Strengthen Area‐Leading Specialist Stores (Standalone storefront) Integrate SUV LAND Fukuoka NEXTAGE Fukuoka SUV Specialist Store (Opening June 2016) (Multi‐storefront dealership) SUV LAND Kobe NEXTAGE Kobe‐Nishi SUV Specialist Store Integrate (Opening June 2016) NEXTAGE Kobe‐Nishi Mi
Slide 18: SUV LAND Kanazawa
Initiative (1) Strengthen Area‐Leading Specialist Stores Grand Opening on November 19, 2016 in Nonoichi City, Ishikawa Prefecture Nonoichi, Ishikawa Prefecture SUV LAND Kanazawa Stock of over 250 SUVs on display
Slide 19: (2) Storefronts with Increased Emphasis on Maintenance Earnings
(2) Storefronts with Increased Emphasis on Maintenance Earnings 19
Slide 20: Initiative (2) Storefronts with Increased Emphasis on Maintenance Earnings
Initiative (2) Storefronts with Increased Emphasis on Maintenance Earnings Fiscal 2015 Retail car sales: 28,493 vehicles(actual) Fiscal 2016 Retail car sales: 35,296 vehicles(actual) *Aim for 28,230 vehicle safety inspection orders in two years’ time Increase vehicle safety inspection retention rate
Slide 21: Initiative (2) Maintenance Earnings: Secure stable earnings
Initiative (2) Storefronts with Increased Emphasis on Maintenance Earnings Cover the customer base, which is increasing by over 30,000 per year Car sale ☑Secure stable earnings ☑Increase customer satisfaction Purchase Acces (cros (1) Open large‐scale dealerships with maintenance equipment ⇒Two deale
Slide 22: Status of initiatives to increase maintenance earnings
Initiative (2) Storefronts with Increased Emphasis on Maintenance Earnings Status of initiatives to increase earnings from maintenance, inspections, and vehicle safety inspections in fiscal 2016 (1) Increase in number of designated workshops: Increased by 4 storefronts from previous fiscal year‐end
Slide 23: NEXTAGE Higashiura Store Grand Opening
Initiative (2) Storefronts with Increased Emphasis on Maintenance Earnings November 23, 2016 Grand Opening in Higashiura, Chita District, Aichi Prefecture Higashiura, Chita District, Aichi Prefecture NEXTAGE Higashiura Store Stock of over 200 vehicles on display
Slide 24: General Stores Designed to Acquire Lifelong Customers
General Stores Designed to Acquire Lifelong Customers Comprehensive services from vehicle purchase to sale (1) Abundant stock (2) Full line of after‐sales service Purchasing Car sale equipment (3) Storefront addition of vehicle purchasing stores Development of Maintenance general stores Vehicle safe
Slide 25: (3) Strengthen Vehicle Purchasing
(3) Strengthen Vehicle Purchasing 25
Slide 26: Initiative (3) Strengthen Vehicle Purchasing
Initiative (3) Strengthen Vehicle Purchasing Establish future purchasing network ☑Ensure stable purchasing Car sale ☑Improve profit margin Access Purchase (1) Open vehicle purchasing specialist stores (cros ⇒10 stores opened in fiscal 2016 ⇒ Strengthen visiting purchases and storefront purchases (2)
Slide 27: Status of initiatives to strengthen purchasing in fiscal 2016
Initiative (3) Strengthen Vehicle Purchasing Status of initiatives to strengthen purchasing in fiscal 2016 (1) Increase in number of purchasing stores: Increased by 10 storefronts from previous fiscal year‐ end (2) Increase in personnel in the Purchasing Division: Increased by 72 staff from the prev
Slide 28: Contents
Contents 1. Results overview 2. Fiscal 2017 initiatives policy 3. Reference documentation 28
Slide 29: Consolidated Operating Results Forecast for Fiscal 2017
Consolidated Operating Results Forecast for Fiscal 2017 Percent of (Millions of yen) Plan YoY net sales Net sales 100,000 114.7％ 100.0％ Operating income 2,500 115.6％ 2.5％ Ordinary income 2,400 115.0％ 2.4％ Profit attributable to owners of parent 1,500 112.5％ 1.5％ EPS ¥153.96 114.6％ ‐ 70,000 vehicles
Slide 30: Establish General Store Model
Establish General Store Model The primary goal of the general store model is to increase profitability per dealership base (per square meter), and to create highly profitable storefronts through lifelong customer relationships.* A further goal for this initiative is to increase ROA. Conventional sto
Slide 31: Initiative Policy for Fiscal 2017
Initiative Policy for Fiscal 2017 Expanding lifelong customer relationship (1) (2) (3) Establish general Expand general Strengthen vehicle store model stores and SUV purchasing Plan LAND Plan Strengthen Plan Vehicle purchases: 10,000 maintenance earnings vehicles/year General stores: 4 storefronts e
Slide 32: Fiscal 2017 Store Opening Plan
Fiscal 2017 Store Opening Plan End of Fiscal Q1 Q2 Q3 Q4 End of Fiscal 2016 2017 New store Medium‐sized openings dealerships (Japanese 38 storefronts 36 storefronts Integrations/ ‐2 Cars) format changes storefronts New store General store 4 storefronts openings 1 storefront 1 storefront 1 storefront
Slide 33: Achieving the 2020 Vision
Achieving the 2020 Vision Fiscal 2020 Targets Net sales: ¥200,000 million Operating income: 10,000 million (1) Develop large‐scale specialist stores (SUV LAND) nationwide (2) Develop general stores (comprehensive services from sales to maintenance and purchasing) nationwide (3) Develop vehicle purch
Slide 34: Contents
Contents 1. Results overview 2. Fiscal 2017 initiatives policy 3. Reference documentation 34
Slide 35: Authorized Volvo Dealerships
Authorized Volvo Dealerships January 21, 2017 Volvo Car Toyama Grand Opening in Toyama City, Toyama Prefecture January 28, 2017 Volvo Car Sakai Grand Opening in Sakai City, Osaka Prefecture A third authorized Volvo dealership is to open in Neyagawa, Osaka Prefecture * The store illustration is a con
Slide 36: All-New XC90
Introducing New Models Full model change All‐New XC90 launch First Class Style The new XC90 makes a powerful yet quiet statement. With a “first class” bearing, it projects style and confidence. Designed with a characteristic Northern European pursuit of pure function and form, the XC90 offer new val
Slide 37: Authorized Maserati Dealership - Sendai Store
Authorized Maserati dealership ‐ Sendai Store July 31, 2016 Grand opening in Sendai City, Miyagi Prefecture Equity method associate: Fortuna Co., Ltd . 37
Slide 38: Levante
Introducing New Models Maserati’s first SUV Levante launch Changing the concept of the SUV Elegant styling with powerful sports performance Announcing Maserati’s first SUV, the Maserati Levante 38
Slide 39: Reference documentation
Reference documentation (¥ million, %) YoY Comparison on Existing‐Store Basis (Quarterly) YoY Comparison on Existing‐Store Basis (Quarterly) (¥ million, %) Net sales Q1 Q2 Q3 Q4 Operating income １Ｑ ２Ｑ ３Ｑ ４Ｑ FY2013 6,024 7,460 6,524 7,871 FY2013 389 482 326 621 Fiscal 2013 FY2012 5,826 7,579 6,385 7,
Slide 40: Reference documentation
Reference documentation (¥ million, %) (¥ million, %) Car sales‐related Maintenance‐related Net sales Q1 Q2 Q3 Q4 Total Net sales Q1 Q2 Q3 Q4 Total (1) Fiscal 2012 5,431 7,167 5,792 6,896 25,289 (1) Fiscal 2012 118 130 120 127 496 (2) Fiscal 2013 7,404 8,602 8,228 10,155 34,390 (2) Fiscal 2013 127 1
Slide 41: Reference documentation
Reference documentation (¥ thousand) Q1 Q2 Q3 Q4 Full year Consolidated statements of income Fiscal 2014 Fiscal 2015 YoY Fiscal 2014 Fiscal 2015 YoY Fiscal 2014 Fiscal 2015 YoY Fiscal 2014 Fiscal 2015 YoY Fiscal 2014 Fiscal 2015 YoY Net sales 12,634,881 15,761,046 24.7% 11,703,325 15,334,620 31.0% 1
Slide 42: Notice
Notice Start of IR Email Magazine Distribution The Company will send a variety of IR information such as timely disclosures to people who register their email addresses on the Company website for the “IR Email Magazine.” This initiative is intended to help people to understand the Company better, an
Slide 43: Company Overview
Company Overview ■Company name NEXTAGE Co., Ltd. 14F, Meiji‐Yasuda Life Insurance Nagoya Building, 1‐1, Shinsakaemachi, Naka Ward, Nagoya, Aichi ■Address Prefecture, 460‐0004, Japan ■Businesses Authorized imported car dealership business ■Established December 25, 1998 Seiji Hirota, President and CEO