AUTOBACS—Aiming to Be a Total Car-Life Service Provider
Total Page：16
File Type：pdf, Size：1020Kb
A UTOBACS SEVEN CO., LTD. Annual Report 2006 LTD. UTOBACS SEVEN CO., AUTOBACS—Aiming to Be IST Bldg., 6-52, Toyosu 5-chome, Koto-ku, Tokyo 135- 8717, Japan http://www.autobacs.co.jp/ a Total Car-Life Service Provider Annual Report 2006 Waterless printing on 100% recycled paper with soy ink Printed in Japan Year ended March 31, 2006 Contents 2......Consolidated Financial Highlights 4......AUTOBACS at a Glance (Consolidated) 6......A Message from the CEO Koichi Sumino, Representative Director and Chief Executive Officer 9......AUTOBACS Group Mid-Term Business Plan Overview of the Plan’s First Year Takashi Matsuo, Director and Chief Strategic Officer Area Dominant Strategy Hironori Morimoto, Director and Co-Chief Operating Officer Total Car-Life Business Strategy / Overseas Business Strategy Kenichi Takeda, Director and Co-Chief Operating Officer 13 ....Special Feature: AUTOBACS—Aiming to Be a Total Car-Life Service Provider Scene 1: Starting Your New Car-Life Scene 2: Improving Your Car to Suit Your Own Taste Scene 3: Always Keeping Your Car in the Best Condition 20......Data Section AUTOBACS Group Store Network / Major Merchandise / Total Store Sales / Market Information / List of Principal Consolidated Subsidiaries and Equity Holding Method Companies 28......CSR Section Corporate Governance / Compliance System / Environmental Initiatives / Health-Promoting Initiatives / Directors and Officers / Corporate Organization 34......Financial Section Consolidated Six-Year Summary / Review of Fiscal 2006 / Consolidated Balance Sheets / Consolidated Statements of Income / Consolidated Statements of Shareholders’ Equity / Consolidated Statements of Cash Flows / Notes to Consolidated Financial Statements / Independent Auditors’ Report 63......Financial Information (Japanese Accounting Standards) Consolidated Financial Data / Financial Statements (Japanese Accounting Standards) 76......Corporate Data 77......Share Information The Goals of the AUTOBACS Group —Creating a Utopia for Automobile Enthusiasts— —Making Drivers the World Over into Car Fans— To achieve these goals, the AUTOBACS Group works as a creator of lifestyles with cars. In 1974, AUTOBACS SEVEN CO., LTD., developed Japan’s first one-stop shopping store format for automotive goods and services. Since our founding, we have been committed to the idea of communicating to customers the joy of cars and providing them with more comfortable driving experiences. It has been more than 30 years since the creation of the AUTOBACS brand. Over that period, the AUTOBACS Group has maintained its position as an industry leader and built a network of more than 500 stores, but the Group’s commitment has not changed. We want to showcase the idea that cars are more than just transportation; they make our lives more comfortable and enjoyable. We want to share with as many people as we can the fun that cars make possible and have people around the world become car fans. We want people to enjoy their cars and to be excited about them. In the future, we will continue to propose enhanced lifestyles with cars. In this way, we will share with customers the joy of owning and driving cars. We will strive to make an ongoing contribution to the realization of a society that harmonizes people and cars and will continue to take on the challenge of achieving further growth for the AUTOBACS Group. Forward-Looking Statements Forward-looking statements in this annual report that are not historical facts and that concern future strategies and operational developments are management’s judgments based on information currently available. Actual results may differ from such forward-looking statements due to changes in various risk factors, some of which are described on pages 42 and 43 of this annual report. 1 Consolidated Financial Highlights AUTOBACS SEVEN CO., LTD. and Subsidiaries Years Ended March 31 Thousands of Millions of yen U.S. dollars 2004 2005 2006 2006 FOR THE YEAR Net sales: Wholesale ................................................................................................. ¥135,551 ¥133,384 ¥139,544 $1,192,683 Retail ........................................................................................................ 91,526 93,395 96,865 827,906 Others ...................................................................................................... — — 3,798 32,462 Total ................................................................................................... 227,078 226,780 240,207 2,053,051 Operating income ........................................................................................ 6,211 7,368 13,638 116,564 Income before income taxes and minority interests ..................................... 9,627 6,876 13,866 118,513 Net income .................................................................................................. 5,444 2,928 7,861 67,188 Per share data (Yen and Dollars): Basic net income ...................................................................................... ¥149.80 ¥79.85 ¥210.36 $1.80 Cash dividends ......................................................................................... 36.00 45.00 52.00 0.44 Return on equity (%) ..................................................................................... 3.7 2.0 5.1 Return on assets (%) ..................................................................................... 2.8 1.4 3.6 Capital expenditures .................................................................................... ¥7,894 ¥6,349 ¥11,400 $97,436 Depreciation and amortization ..................................................................... 5,957 5,620 5,068 43,316 AT YEAR-END Cash and cash equivalents ........................................................................... ¥ 41,155 ¥ 51,150 ¥ 53,622 $ 458,308 Current assets .............................................................................................. 94,359 104,214 112,020 957,436 Current liabilities .......................................................................................... 33,684 34,610 44,046 376,462 Total assets ................................................................................................... 202,761 203,225 227,707 1,946,214 Shareholders’ equity .................................................................................... 147,533 148,983 161,536 1,380,650 Number of stores ......................................................................................... 528 529 532 Overseas stores ........................................................................................ 11 12 19 Number of employees .................................................................................. 4,008 4,023 4,406 Net Sales SG&A Expenses Operating Income Net Income (¥ billion) (¥ billion) (%) (¥ billion) (%) (¥ billion) (%) 250 80 40 15 6 8 4 200 60 30 6 3 10 4 150 40 20 4 2 100 5 2 20 10 2 1 50 0 0 0 0 0 0 0 ’02 ’03 ’04 ’05 ’06 ’02 ’03 ’04 ’05 ’06 ’02 ’03 ’04 ’05 ’06 ’02 ’03 ’04 ’05 ’06 Wholesale Retail % of net sales (right scale) % of net sales (right scale) % of net sales (right scale) Others Notes:1. Due to a change in accounting policies from fiscal 2006, rental income and lease revenue were reclassified from “other income” to “net sales” and related costs were reclassified from “other expenses” and “selling, general and administrative expenses” to “cost of goods sold.” 2. U.S. dollar amounts have been translated at the rate of ¥117=US$1, the approximate current exchange rate at March 31, 2006. 2 Financial Highlights Net sales were up 5.9%, to ¥240.2 billion. Operating income, ordinary income, and net income all marked substantial increases. Operating income was up 85.1%, to ¥13.6 billion; ordinary income increased 33.3%, to ¥16.9 billion; and net income rose 168.5%, to ¥7.9 billion. The gross margin improved to 30.8%, from 30.1% in the previous fiscal year. ROA improved by 2.2 percentage points, to 3.6%, and ROE improved by 3.1 percentage points, to 5.1%. Cash dividends per share increased by ¥7.00, to ¥52.00 per share. Business Highlights We continued to enhance our store network in line with the Area Dominant Strategy, and the total number of stores at the end of the year under review was 532 (Japan: 513, overseas: 19), an increase of 3 stores from the end of the previ- ous fiscal year. The number of cars sold reached 10,921, an increase of 3,205 from the previ- ous fiscal year. Out of a total of 513 stores, the number certified to perform statutory safety inspections increased to 217 (at fiscal year-end), and the number of vehicles for which we performed statutory safety inspection services increased by about 44,000, to approximately 240,000 in the year under review. We established an operational foundation in France with the acquisition of 6 Eldorauto car parts and accessories stores. We entered an alliance with Halfords Group plc, one of the top car parts retail- ers in England. Total Assets and Cash and Net Cash Provided by Capital Expenditures, Shareholders’ Equity Cash Equivalents Operating Activities Depreciation and Amortization (¥ billion) (¥ billion) (¥ billion) (¥ billion) (¥ billion) 250 60 25 12 8 200 20 9 6 40 150 15 6 4 100 10 20 3 2 50 5 0 0 0 0 0 ’02 ’03 ’04 ’05 ’06 ’02 ’03 ’04 ’05 ’06 ’02 ’03 ’04 ’05 ’06 ’02 ’03 ’04 ’05 ’06 Total assets Capital expenditures Shareholders’ equity Depreciation and amortization (right scale) 3 AUTOBACS at a Glance (Consolidated) The AUTOBACS Consolidated Group operates a franchise % of Net Sales by Operation chain that mainly sells