Autobacs Seven : 2024 Medium-term Business Plan "Accelerating Towards Excellence"

2024 Medium-term Business Plan

Accelerating Towards Excellence

May 10, 2024

AUTOBACS SEVEN CO., LTD.

1．Long-term Vision "Beyond AUTOBACS Vision 2032"

2

3

Changes in the Business Environment and Direction of Our Evolution

Changes in the environment

The environment surrounding the

automotive industry

has entered a once-in-a-century period

Issue recognition

Society, cars, and people's lifestyle will continue to change even more rapidly and dramatically in the future.

	of great change
1	Greater interest in the environment
2	Diversification of customer needs and
	purchasing behavior
3	Advancement in automobile maintenance and
	shortage of certified mechanics
4	Increase in connected cars
5	Popularization of autonomous vehicles
6	Shift from car ownership to car sharing
7	Shift to carbon neutrality

Our Evolution

Sustainable society

New value creation

Connections with customers

Goods and services

DX innovation

Diversification of channels

To become a company that

consistently offers the enjoyment of going out

Into a presence that will realize, on a global scale, a safe, secure, and gentle society in which people, cars, and the environment exist in harmony.

Into a group of companies that meets customers' fundamental needs for safety and enriched lives.

Into a presence that cares for traffic safety in society and customers' life stages and that continues to support mobility lifestyles.

Into a group of companies that continues to offer products and services to suit mobility lifestyles.

Into a mobility lifestyle innovator that will speed up enjoyment with optimal, data-based services.

Into a place where we can forge connections with customers from all our channels.

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Envisaged Business Growth

We will adapt to environmental changes and continue to take on the challenge of the expansion of business areas and the creation of new businesses, and aim for consolidated net sales of 500 billion yen in FY2032.

Envisaged Business Growth

• New business creation
• Used car purchasing and sales
• Statutory safety inspections and services
• Automotive goods sales

Consolidated

net sales

¥236.2 billion

Consolidated net sales

¥500 billion

Discontinuous innovations

Continuous growth

Entry into/creation of micromobility markets Become a mobilityinformationplatformer

Become a major dealer of ZEVs, including EVs

Expansion of safety and security value provision

Evolution of content using DX

FY2022	Automotive goods	Statutory safety	Used car purchasing	New business	FY2032
	sales	inspections and	and sales	creation	5
		services

2. Review of the "Five-year Rolling Plan"

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Review of the Five-year Rolling Plan

We established the "Five-year Rolling Plan" in 2019 to respond to rapid changes in the business environment.

While continuously adjusting our direction and strategy, we have been developing our business infrastructures.

Conceptual diagram: Six Networks, Five Business Infrastructures, and Eleven Businesses

■Mission: Continue to create new car lifestyle culture

■Method: Continuously adjust our direction and strategy for the next five years in light of current trends

■Vision: Establish Six Networks to offer a variety of

services tailored to customers' car-use situations and link them

■Targets: Announce specific numerical targets for each year

Five-year Rolling Plan 2022

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Review of the Five-year Rolling Plan

Promoted initiatives to advance each business and establish business infrastructures. Also embarked on a structural transformation of the Group to increase the speed of implementation of these initiatives and improve profitability.

Initiatives for businesses and business infrastructures

Structural transformation

Strengthening of points of contact with customers

• Increase in the number of bases
• Establishment of a customer information platform
• Greater convenience

Active response to changes in the environment

• All stores designated for performing statutory

safety inspections in AUTOBACS Group

Reform of the management structure

• Streamlining of the headquarters
• Abolition of the officer system
• Development of executive candidates

Strengthening of the earnings base

• Promotion of DX strategy
• Revision of the personnel system

acquired Specific Maintenance Certifications

Human resource development initiatives

• Promotion of reskilling

• Review of the business portfolio
• Change of the franchise chain package
• Promotion of management using ROIC

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Review of the Five-year Rolling Plan

Leveraging the business infrastructures cultivated by the Domestic AUTOBACS Business, consolidated net sales other than the Domestic AUTOBACS Business increased by about 27 billion yen.

Consolidated operating income improved* compared to FY2018 before the launch of the Five-year Rolling Plan.

Net sales

250

200

Significant decrease in net sales compared to the initial plan due to the transfer of shares of two consolidated subsidiaries in the Car Dealership Business

(Billions of yen)

Operating income

20

15

10

5

FY2018	FY2019		FY2020		FY2021	FY2022	FY2023
		Consolidated net sales (initial plan)		Consolidated net sales		Consolidated operating income (initial plan)				Consolidated operating income

*Operating income in FY2023: excluding the temporary decrease (about 3.0 billion yen) due to the change in FC chain package	9

Review of the Five-year Rolling Plan

Building upon the policy established in FY2019 to achieve a five-year cumulative total return ratio of 100%, we implemented stable and flexible shareholder returns. Excluding one-time profits from the transfer of the BMW/MINI authorized dealership business, the five-year cumulative total return ratio is 102.9%.

200%

180%

160%

140%

120%

100%

80%

60%

Five-year cumulative total return ratio

182.8%

Excluding the gain on sale of the BMW/MINI authorized dealership business: 102.9％

108.0% 108.6%

102.9％

95.9%93.9%

FY2019

FY2020

FY2021

FY2022

FY2023

80

60

40

20

0

(Yen)

10,000

8,000

6,000

4,000

2,000

0

(Millions of yen)

Dividends per share

				First half		Second half
						30
30	30	30		30
30	30	30		30		40
FY2019	FY2020	FY2021	FY2022	FY2023

Dividends and share buybacks

Share buybacks

Dividends

2,0882,999

4,793 4,794 4,678 4,679 5,460

FY2019

FY2020

FY2021

FY2022

FY2023

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