第2四半期 決算短信〔日本基準〕（連結）

October 29, 2021

Consolidated Financial Results for the Six Months

Ended September 30, 2021【Japanese GAAP】

Summary of Quick Financial Announcement of Consolidated Financial Information for the Six Months Ended September 30, 2021.

Company name: AUTOBACS SEVEN CO., LTD.

Code number: 9832

(URL https://www.autobacs.co.jp/) Headquarters: Tokyo, Japan

Company Representative: Kiomi Kobayashi, Representative Director

Contact for further information: Hiroyuki Takano, General Manager, Finance & Accounting Department

Telephone: [phone]

Stock exchange listing: Tokyo

Submission of Quarterly Business Report: November 5, 2021

Start of cash dividend payments: November 25, 2021

Supplementary quarterly materials prepared: Yes

Quarterly results information meeting held: Yes

1. Results for the six months ended September 30, 2021 (From April 1, 2021 to September 30, 2021)

(Note: Amounts less than 1 million Yen have been rounded down. A figure in ( ) indicates a loss or a negative figure.)

(1) Results of operations:

(Unit: Millions of Yen except for per share information, and % information which indicates increase or decrease( ).)

	Net sales		Operating income	Ordinary income
Six months ended		％		％		％
September 30, 2021	103,551	－	2,914	－	3,083	－
Six months ended
September 30, 2020	99,714	(10.2)	3,583	(19.4)	3,899	(17.0)
Note: Comprehensive income:	2,598 million yen for the Six months ended September 30, 2021: －%
	3,132 million yen for the Six months ended September 30, 2020: 17.3%
	Profit attributable to	Basic net income	Basic net income per
	owners of parent	per share (Yen)	share - diluted (Yen)
Six months ended		％
September 30, 2021	1,888	－	23.82		－
Six months ended
September 30, 2020	2,363	(16.5)	29.60		－

Note: The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. were applied from the beginning of the first three month of the consolidated fiscal year. Accordingly, the figures for the six months ended September 30, 2021 reflect said accounting standard, etc., and increase or decrease rates from the same quarter of the previous year are not indicated.

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1. Financial position:
   (Unit: Millions of Yen except for per share information)

				Net assets per
	Total assets	Total net assets	Equity ratio	share (Yen)
Six months ended				％
September 30, 2021	176,589	120,575	67.9	1,538.73

Fiscal year ended

March 31, 2021187,914123,83365.61,542.40

(Reference) Equity: Six months ended September 30, 2021: 119,920 million Yen Fiscal year ended March 31, 2021: 123,180 million Yen

Note: The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. were applied from the beginning of the first three month of the consolidated fiscal year. Accordingly, the figures for the six months ended September 30, 2021 reflect said accounting standard, etc.

2. Dividends

			Dividends per share				(Yen)
		Three months	Second Quarter	Third Quarter	Year -end	Annual
Fiscal year ended
March 31, 2021		－	30.00			－	30.00		60.00
Fiscal year ended
March 31, 2022		－	30.00
Fiscal year ended
March 31, 2022
(forecast)						－	30.00		60.00

Note: Revisions to dividend forecasts published most recently: None

3. Forecast for the fiscal year ending March 2022 (from April 1, 2021 to March 31, 2022)

(Unit: Millions of Yen, percentage figures denote year-on-year change)

	Net sales		Operating income		Ordinary income
		％		％		％
Annual	226,500	－	9,500	－	10,000	－
	Profit attributable to		Basic net income
	owners of parent		per share (Yen)
		％
Annual	6,700	－	85.97
Note: Revisions to financial forecasts published most recently: None

Note: The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. were applied from the beginning of the current consolidated fiscal year under review. Accordingly, the figures for the forecast of the fiscal year ending March 2022 reflect said accounting standard, etc., and increase or decrease rates from the same period of the previous year are not indicated.

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4. Other

1. Significant changes in scope of consolidation: None
2. Adoption of special accounting policies for quarterly financial statements: None
3. Changes in accounting policies, accounting estimation change and restatement

1.	Changes due to changes in accounting standard	: Yes
2.	Changes due to changes in accounting standard except (3)-1.	: None
3.	Changes due to accounting estimation change	: None
4.	Restatement	: None

Note: For further details, please refer to "7. Notes on the quarterly consolidated financial statements", "Changes in Accounting Policies".

1. Shares outstanding (common stock)
2. 1. Number of shares outstanding (including treasury stock)
      Six months ended September 30, 2021: 82,050,105 shares
      Fiscal year ended March 31, 2021: 84,050,105 shares
   2. Number of treasury stock at the end of period

Six months ended September 30, 2021: 4,115,391 shares

Fiscal year ended March 31, 2021: 4,187,061 shares

3. Average shares outstanding over quarter

Six months ended September 30, 2021: 79,304,110 shares

Six months ended September 30, 2020: 79,855,642 shares

※These financial results are not subject to quarterly review procedures by certified public accountants or auditing firms.

※Statement regarding the proper use of financial forecasts and other special remarks (Statement regarding the proper use of financial forecasts)

These forecast performance figures are based on the information currently available to the Company's management and certain assumptions judged rational. Accordingly, these might be cases in which actual results materially differ from forecasts of this report.

(Availability of quarterly financial results supplementary material)

Autobacs Seven Co., Ltd. will be held the Analysts Meeting online on November 1, 2021. The presentation material of the meeting will be uploaded on the Company's website afterwards.

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5. Qualitative Information Concerning the Six Months Ended September 30, 2021 Explanation of business results

During the first six months of the fiscal year under review, the Japanese economy continued to be challenged by the COVID-19 pandemic. However, measures have been taken to prevent COVID-19 infections, including the promotion of vaccination, and this is expected to enable the economy to improve. Looking at trends in domestic automobile-related industries, sales increased slightly in the first half of the current fiscal year. However, these industries are currently affected by the global shortage of semiconductors, which has led to a reduction in new car production. In terms of automotive-related goods, sales and the number of customers declined mainly due to people refraining from long-distance driving and returning to their hometowns on holiday due to the increased rate of COVID-19 infection during the summer. Some car electronic goods have been affected by the semiconductor shortage.

To prevent the spread of COVID-19, the Group has made the health and safety of its customers in local communities, business partners and employees its top priority. With this in mind, it seeks to establish an environment enabling everyone to visit stores and engage in services without worry. In April and May, sales decreased significantly due to the spread of COVID-19. From June, however, sales were trending toward recovery at a different pace in each segment. The Group continued to make necessary investments and strove to reduce selling, general and administrative expenses.

In these circumstances, based on the Five Year Rolling Plan illuminating the direction to be pursued, the Group enacted a range of measures to establish and link six networks for offering services suited to scenarios in which customers use cars, with an eye on continuing to grow its business by responding to changing demand and continuing to contribute to local customers and communities.

As a result, the Group's sales during the first three months of the consolidated fiscal year under review were 103,551 million yen (compared to 99,714 million yen in the same period of the previous year), gross profit was 34,871 million yen (compared to 33,185 million yen in the same period of the previous year), and selling, general, and administrative expenses were 31,957 million yen (compared to 29,602 million yen in the same period of the previous year), resulting in operating income of 2,914 million yen (compared to 3,583 million yen in the same period of the previous year). Ordinary income was 3,083 million yen (compared to 3,899 million yen in the same period of the previous year). Consequently, profit attributable to owners of parent stood at 1,888 million yen (compared to 2,363 million yen in the same period of the previous year).

As the Group has adopted the Accounting Standard for Revenue Recognition, etc. from the beginning of the first three months of the consolidated fiscal year under review, the rates of increase or decrease from the same quarter of the previous year are not stated. However, simple comparisons of the actual results for the current period with those of the previous period are as follows: the Group's net sales increased by 3.8% year on year, gross profit increased by 5.1% year on year, selling, general and administrative expenses increased by 8.0% year on year, operating income decreased by 18.7% year on year, ordinary income decreased by 20.9% year on year, and net income attributable to shareholders of the parent company decreased by 20.1% year on year.

Results by business segment are as follows.

[Domestic AUTOBACS Business]

For the first six months of the consolidated fiscal year under review, total sales for domestic businesses in the entire AUTOBACS chain (including franchise outlets) increased by 0.5% year on year on a same- store basis, and by 0.6% year on year on an overall-store basis.

In light of the importance of cars in people's lives from the perspective of infrastructure even amid a state of emergency, the AUTOBACS chain continued sales operations while simultaneously paying maximum attention to the prevention of infection through the minimization of physical contact between customers and employees, among other means, to aid customers in leading secure and safe lives with their cars. AUTOBACS will continue to make efforts to prevent the spread of infection.

In April and May, both the number of customers and sales exceeded those of the same period of the previous year against the backdrop of increased car use. From June, however, there was a reaction to the growth in demand for car maintenance services in the same period of the previous year.

In addition, the number of customers decreased during the summer season as people continued to refrain from going out and returning to their hometowns for holiday due to the rapid spread of the

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infection and the tendency to refrain from long-distance driving.

In September, both sales and the number of customers were trending toward recovery as the number of infected people declined.

Sales of tires recovered to the level of the previous year, albeit in a severe market environment due to the ongoing trend of people refraining from long drives because they are refraining from travel. Sales of car electronics fell, mainly due to sluggish sales of dashboard cameras, which had been strong in the previous year following the increased penalties for road rage. In addition, the global semiconductor shortage affected the supply of some products, but the impact was minimized through strategic product procurement and management. Regarding its private brands, the Company expanded the merchandise lines of AQ. (Autobacs Quality) and GORDON MILLER, improving the appeal of its merchandise. In addition, the Company has been continuously bolstering operations in stores and proceeding with facility renovations, including sales floors and service bays.

In its statutory safety inspection and maintenance services, the Company promoted reservations via the website and phone as an initiative to reduce opportunities for physical contact with customers and increase convenience. Due to this initiative and the market environment backed by the increased number of vehicles subject to statutory safety inspections, the number of vehicles that underwent statutory safety inspection and maintenance services rose by 7.0% year on year, to approximately 324,000. In addition, the Company is working to comply with the automobile specific maintenance system that was established to maintain safe advanced automobiles that use driver assistance technology and automatic driving technology. As of the end of September 2021, 417 of the 431 designated factories have acquired automobile specific maintenance certification, and the remaining stores will work to acquire this certification as soon as possible.

In automobile purchases and sales, new car sales and car purchases increased, while used car sales decreased. As a result, the total number of automobiles sold increased 7.7% year on year, to approximately 14,300.

The total number of stores in operation in Japan stood at 585, with one store added at the end of March 2021. The number of CARS franchise stores decreased to 392 from 402 as of the end of March 2021. As a result, sales in the domestic AUTOBACS business during the first six months of the consolidated fiscal year under review were 79,071 million yen (compared to 80,009 million yen in the same period of the previous year), and segment profit was 7,239 million yen (compared to 7,277 million yen in the same period of the previous year).

[Overseas Business]

Sales for the Overseas Business were 5,376 million yen (compared to 5,221 million yen in the same period of the previous year), and segment loss was 169 million yen (compared to a segment profit of 34 million yen in the same period of the previous year).

In the retail and service business, sales decreased due to the impact of closures and people voluntarily refraining from outings due to the pandemic, while in the wholesale business, sales increased mainly due to the acquisition of new customers. In France, sales rose following the lifting of curfew restrictions. In Singapore, sales fell reflecting the impact of people voluntarily refraining from and restrictions on outings due to the significant rate of COVID-19 infection, especially since September. In China, the Company increased the number of authorized dealers and promoted the acquisition of new wholesale customers. Also in Australia, wholesale sales increased due to sales activities such as the introduction of new goods, in addition to car electronics goods and radio equipment, despite the impact of lockdowns in some regions.

In terms of the number of store openings and closures outside Japan, with seven store openings and one closure, the number of stores increased from 45 as of the end of March 2021, to 51.

[Car Dealership, BtoB and Online Alliance Business (formerly Car Dealership, BtoB and Internet Business)]

Sales for the Car Dealership, BtoB and Online Alliance Business were 23,095 million yen (18,440 million yen in the same period of the previous year), and segment loss was 255 million yen (322 million yen in the same period of the previous year).

In the Car Dealership business, sales decreased in the same period of the previous year due to the effects of people voluntarily staying home following the declaration of a state of emergency. Yet, in the first six

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