Five-year Rolling Plan

AUTOBACS SEVEN CO., LTD. May, 2021 How to Implement the Five-year Rolling Plan

◼ Period: Five years from the beginning of each fiscal year

◼ Implementation of review: Without sticking to the five-year period mentioned above, we continuously review its direction and strategies for the five years ahead to keep up with the latest trends.

◼ Announcement of numerical goals: Specific numerical targets will be announced each year.

1 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.

2 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

3 Five-Year Rolling Plan 1. Our Goal Through Five-Year Rolling Plan ◼ Our Goal

Provide merchandise and services tailored to customer needs with a sense of speed.

4 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 coordination among networks

5 Five-Year Rolling Plan 2. Progress in FY March 2021: Examples of Efforts

(1) Strengthening of businesses

(2) Development of business infrastructures

(3) Creation of networks

6 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 initiatives taken in tire sales, statutory safety inspections & maintenance services, and store renovations • People's review of the value of cars in the COVID-19 pandemic has changed the demand for cars themselves, automobile goods and service • By continuing to promote the three initiatives, we were able to flexibly respond to major changes in the environment [FY March 2021 Results for the three initiatives] Statutory safety inspection Tires Store renovation and maintenance services Number of tire sold YoY Number of cars and Number of stores sales YoY renovated Summer tires 90.8％ Cumulative results*286 stores Number of cars YoY 103.0％ (*total of threes years from FY March 2019) Snow tires 111.3％

Tire total 96.5％ Sales YoY 103.8％ Improved migration Changed the location of front of the cash merchandise that need register sales advice 7 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 customers by developing new PB products in wholesale business. Strengthen the development of new business partners

• Strong online sales of corporate goods BtoB Business wholesale through subsidiaries while sales activities were restricted due to COVID-19.

• Opened a corporate website for corporate demand. Renewal open of e-commerce website

Online Alliance • Updated the website for e-commerce in order Business to improve customer usability and convenience (Internet Business before） • Expanded functions of merchandise matching to suit the vehicle type on online. 8 Five-Year Rolling Plan 2. Progress in FY March 2021: Examples of Efforts (2) Development of business infrastructures

Human Resources Information IT Infrastructures Infrastructures Infrastructures • Introduction of the • Update the style of • Development of master company system communication with data (searching for (cultivation of young stakeholders using IT matching information) managerial talents) technology • Collection of transaction • Work style reform • Demonstration data (service pit work • Appointment of female experiment of new history, etc.) managers service for customers by promoting DX • Development of the education system

9 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 Sales of AUTOBACS Group alliance agreement was Co., Ltd., a company affiliated with Maintenance Pack to other concluded with the BS-summit Corporation companies business cooperative May 1, 2020 August 20, 2020 December 15, 2020 • Established a network leveraging • Business alliance with 380 BS- • Provide AUTOBACS’ car more than 4,700 locations summit companies maintenance service packages to Provide one-stop car used car dealers and car leasing • Started sending customers to • AUTOBACS stores maintenance shops companies. for customers • Strengthen next-generation maintenance Acquire all shares in TA Import Acquired all shares in Joyful Formed a business alliance with Co., Ltd. that operates Shaken & Tire Center Co., Ltd. authorized dealers of Audi April 1, 2021 April 1, 2021 April 20, 2021 • Three Audi Authorized dealers • Operates a statutory safety • Start supplying automotive inspection services and tire goods to Nissan • Operation of the third brand center on the site of home following BMW and MINI. center at six bases mainly in • Joint planning and northern Kanto development of NISSAN/NISMO brand items 10 Five-Year Rolling Plan 3. Initiatives in FY March 2022 (1) Policy ◼ Further strengthening operating systems to meet the needs of customers in COVID-19. ◼ Continuation of efforts to increase contact points with customers

◼ Strengthen active response to environmental changes

11 Five-Year Rolling Plan 3. Initiatives in FY March 2022 (2) Measures for each business Measures • Continue to promote the company system and strengthen on- site capabilities (human resources) • Promote opening, remodeling and renovating of stores Domestic AUTOBACS • Strengthen cooperation between e-commerce and real stores Business • Expansion of business trip assessment (car purchase) • Promotion of online maintenance booking (oil change by application) • Early response to next-generation maintenance, etc. • Expansion of wholesale business (product development, Overseas Business development of new business partners) • Development of original products BtoB Business • Capture new demand through tire-wheel built-in service Car Dealership Business • Retaining and training human resources to improve brand Online Alliance Business • Expansion of e-commerce site Lifestyle Business • Strengthen online sales, strengthen sales of GML MOTORS Expansion Business • Expansion of car sales in corporate with AUTOBACS CARS (insurance and financial business (loan / credit business) services) 12 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 visualization by ROA for each business

13 Five-Year Rolling Plan 3. Initiatives in FY March 2022

Aware of national and ◼ Promotion of ESG and SDGs Formulate CSR international standards policy and initiatives Established Obtained ISO14001 Contribution to mobile Internal Create an integrated environmental policy Strengthening culture penetration of report CSR with the Appropriate response internal control CSR to environmental environment as the management ～2020 management entrance ～2017 ～2014 ～2000 ～2011 Environmental Social Governance Established environmental policy in 2011 Traffic safety initiative Corporate governance system Simplified packaging of products (resource Support for next-generation human Management for CSR saving) resource development Communication with stakeholders etc. Used car air fresheners repurposing Health initiative program Initiative for diversity work style etc. Installation of mega solar etc.

14 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)

Importanceto

stakeholders Present Recognizing social issues (Social) Materiality

Reexamination of materiality

Redefining the value creation story Importance to the company hereafter (economic) Identify materiality

Set KPIs for materiality

Integrate into business

strategy 15 Five-Year Rolling Plan 3. Initiatives in FY March 2022 Our ideal Professional & Friendly

1 ３

Creation of businesses that solve social issues Growing Develop new businesses that contribute organizations and human resources to SDGs/open innovation/deal with EV etc.

2 Develop next- generation human Enhancing efforts that consider the environment resource and and society mechanics/work- style CO2 reduction such as energy saving/Reduce reforms/health burden on the environment/Coexistence with the management/D&I local community etc. etc.

Sustainable and strong management base ４

ESG management/digital transformation/social contribution etc. 16 Five-Year Rolling Plan Activities to Solve Social Issues

◼ Future Generations & Car Culture ◼ Protecting the Environment Pavilion opened at KidZania and Resource saving such as simplified KidZania Koshien packaging of products

◼ Diversity & Human Resources ◼ Health Management Diversity and inclusion Support smoking cessation (No-Smoking Challenge) 17 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 Drive Climber Landslide monitoring monitoring monitoring Going out Vacant house monitoring monitoring Business car monitoring Route bus control Agriculture machinery monitoring

Housebreaking Crops River level monitoring monitoring monitoring Monitoring for whole city safe

18 Five-Year Rolling Plan

APPENDIX

19 Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX

Automotive related Goods Efforts to create networks Sales Network ◼ 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 TIREHOOD nationwide, where tires are installed. • Started sending customers to AUTOBACS stores. Thirty percent of users have chosen AUTOBACS to install their tires. • Started sending customers from our EC site “AUTOBACS.com” to TIREHOOD. AUTOBACS and TIREHOOD send customers to each other. • Information on customers who use stores other than AUTOBACS can also be analyzed, which can lead to strengthening competitiveness in the future.

20 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-summit companies Local Network • One-stop car Local Network maintenance service network for

customers Supplier Network • Experimental verification began in Kyushu, Kanto and Tohoku Local Network

Service Pit Network

*A nationwide body shop network with about 370 members 21 Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX

Service Pit Network Efforts to create networks

◼ Start selling AUTOBACS Group Maintenance Pack to other companies (December 15, 2020) • Provide AUTOBACS’ car maintenance service packages to used car dealers and car leasing companies who have problems with their own maintenance services. • Service available at nationwide AUTOBACS and Super AUTOBACS stores.

Sell AUTOBACS Group Companies who have problems with their own Maintenance Pack End-user maintenance services 22 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 part of our efforts to build the multi- dealer network. • Start operating the third brand following BMW and MINI.

23 Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX

Automotive Next-Generation Service Pit related Goods Maintenance Network Efforts to create networks Sales Network Network ◼ Acquired all shares in Joyful Shaken & Tire Center Co., Ltd., a nonconsolidated subsidiary of Joyful Co., Ltd. (April 1, 2021) • Operates statutory safety inspection and tire center on the site of home center at six bases mainly in northern Kanto. • Provide customers using the home centers with secure and safe merchandise and services. • Promote business expansion and the creation of synergies with automotive goods sales in the area of statutory safety inspection and maintenance services the market for which is expected to grow. 24 Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX

Automotive related Goods Efforts to create networks Sales Network ◼ 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 create a richer car life culture. • Planning to supply some of our automotive goods to Nissan, collaborate in planning and developing NISSAN/NISMO brand items, and co-host events and sales opportunities for the products. • Planning to expand sales of our products to new international markets. • Reached an agreement and entered into a contract to supply Nissan with our automotive goods such as car interior items and car wash supplies from the first half of the fiscal year 2021.

25 Five-Year Rolling Plan Five-Year Rolling Plan: APPENDIX 1) Domestic AUTOBACS Business Effort to strengthen the businesses • Demand for cars expanded and the number of customers increased due to the review of the value of cars • AUTOBACS application updated on October 19, 2020. • Strengthened next-generation maintenance services (maintenance of aiming training system, acquisition of specific maintenance certification)

• Online bookings for oil changes approx.150 ％ (YoY) AUTOBACS Application updated • New application downloaded approx.1.3 million people

[Key points of improvements] • Start-up speed and operability improvements make bookings easy. • Customers can register vehicle information simply by scanning the QR code on the inspection sheet. 26 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 of new wholesale customers Batteries (the Philippines, Taiwan, etc.) Oil, etc. (Bangladesh) Automotive goods (Indonesia)

Opening of authorized dealerships on an experimental basis Malaysia, China

Capturing of inbound demand by strengthening EC sites

27 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 driving sales • The "tire & wheel installation inclusive set" has also begun

• Began driving visits to our physical stores through BEAD Co., Ltd. Percentage of customers who previously purchased tires at other than AUTOBACS exceeds 70%.

28 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 such factors as changes in operating circumstances.