Q2 FY223
Consolidated Results of Operations
USS Co., Ltd.
November 2023
FY2023 (FY3/2024) : from April 1, 2023 to March 31, 2024
Contents
Ⅰ :1H FY2023 Results of Operations | P.3 | Ⅲ:Market Overview and Strategy for Creating Value Over the Medium-term | P.22 | |||
1. | Highlights of 1H FY2023 | 1. | Used Car Auction Market and USS Market Share | |||
2. | 1H FY2023 Summary of Consolidated Results of Operations | 2. | Long-term Growth Vision | |||
3. | Net Sales and Operating Profit by Business Segment | 3. | Medium-term Business Plan and Raising the ROE | |||
4. | 1H FY2023 Reasons for Change in Operating Profit (Actual) | 4. | Basic Policy on Finance and Shareholder Distributions | |||
5. | Consolidated Balance Sheets and Statements of Cash Flows | 5. | Share Repurchase | |||
6. | Automobile Market | 6. | Earnings Distributions - Dividend Policy | |||
7. | Auto Auction Segment | 7. | Earnings Distributions - Total Payout Ratio | |||
8. | Used Vehicle Purchasing and Selling Segment | 8. | Cycle of Rising Corporate Value Driven by Business Growth and | |||
9. | Recycling Segment | Shareholder Distributions | ||||
10. TOPICS A New Automobile Loan Product Using a Tie-up with GMS
Ⅱ:FY2023 Consolidated Forecast | P.17 | Ⅳ: Reference | P.35 | ||||
1. | FY2023 Consolidated Forecast | 1. | Business Models for USS | ||||
2. | 2H FY2023 Reasons for Change in Operating Profit (Forecast) | 2. | Automobile Market and USS Revenue | ||||
3. | FY2023 | Reasons for Change in Operating Profit (Forecast) | 3. | New/Used Car Registrations and Auto Auction Market | |||
4. | FY2023 | Forecast by Business Segment | 4. | Appendix | |||
Copyright@ 2023 USS Co., Ltd. All Rights Reserved. | 2 |
1H FY2023
Results of Operations
Copyright@ 2023 USS Co., Ltd. All Rights Reserved. | 3 |
Highlights of 1H FY2023
1H FY23 Results
- Net sales ¥48.0 billion
(up 13.3% YoY)
- Operating profit
¥23.7 billion
(up 12.1% YoY)
- USS Auto Auction result in 1H FY2023: vehicles consigned was 1.53 million (up 13.1% YoY), contract completions was 0.95 million (up 4.6% YoY), contract completion rate was 62.0%
- In the used vehicle purchasing and selling segment, sales increased and earnings were down as the number of vehicles sold increased but the gross profit per vehicle was lower.
- In the recycle segment, sales and earning increased because of the larger number of orders for large demolition projects.
FY23 Forecast
- Revisions to the FY2023 plan
- Revised upward the FY2023 plan to reflect higher-than-forecasted first half results.
- Net sales ¥95.4 billion
- 3.2% higher than the initial forecast
- The current plan for FY2023 is 3.07 million vehicles consigned at auctions, 2.6% above the previous plan, 1.91 million contracted vehicles, 1.9% above the previous plan, and a contract completion ratio of 62.3% compared with the previous plan of 62.7%.
- Operating profit ¥47.1 billion
- 4.0% above the previous plan
Earnings Distributions
- FY2023 dividend forecast has been raised from ¥69.4 to
¥73.1
This will be the 24th consecutive year of dividend increases.
- In FY2019, the basic policy for dividends was revised as consolidated payout ratio guideline increased to at least 55%.
- Repurchase of stock
- USS repurchased 5 million shares of stock at a cost of ¥11.8 billion on June 21, 2023.
Copyright@ 2023 USS Co., Ltd. All Rights Reserved. | 4 |
1H FY2023 Summary of Consolidated Results of Operations
- Sales was up 13.3% YoY to ¥48.09 billion, operating profit was up 12.1% to ¥23.77 billion, and profit attributable to owners of parent up 10.6% to ¥16.16 billion.
- Record-highsales, operating profit, ordinary profit and profit attributable to owners of parent
1H FY22 | (per sales) | 1H FY23 | (per sales) | Year on year | Initial plan | (per sales) |
(May 9, 2023) | ||||||
(Million yen)
VS. Plan
Net sales | 42,429 | 48,093 | 113.3% | 45,100 | 106.6% | |||||
Cost of sales | 16,467 | 38.8% | 19,115 | 39.7% | 116.1% | 17,963 | 39.8% | 106.4% | ||
Gross profit | 25,962 | 61.2% | 28,978 | 60.3% | 111.6% | 27,136 | 60.2% | 106.8% | ||
Selling, general and | 4,741 | 11.2% | 5,198 | 10.8% | 109.6% | 4,936 | 10.9% | 105.3% | ||
administrative expenses | ||||||||||
Operating profit | 21,220 | 50.0% | 23,779 | 49.4% | 112.1% | 22,200 | 49.2% | 107.1% | ||
Ordinary profit | 21,586 | 50.9% | 24,131 | 50.2% | 111.8% | 22,540 | 50.0% | 107.1% | ||
Profit attributable to | 14,614 | 34.4% | 16,164 | 33.6% | 110.6% | 15,200 | 33.7% | 106.3% | ||
owners of parent | ||||||||||
Copyright@ 2023 USS Co., Ltd. All Rights Reserved. | 5 |
Net Sales and Operating Profit by Business Segment
(Million yen) | ||||||||||
Net sales | 1H FY21 | 1H FY22 | 1H FY23 | Year on year | ||||||
Auto auction | 31,929 | 33,168 | 36,468 | 109.9% | ||||||
Used vehicle purchasing and selling | 4,229 | 5,049 | 5,314 | 105.2% | ||||||
Recycling | 3,579 | 4,162 | 6,149 | 147.7% | ||||||
Other | 46 | 48 | 161 | 333.1% | ||||||
Total | 39,784 | 42,429 | 48,093 | 113.3% | ||||||
Operating profit (operating margin) | 1H FY21 | 1H FY22 | 1H FY23 | Year on year | ||||||
Auto auction | 19,852 | (61.9%) | 20,434 | (61.4%) | 22,807 | (62.3%) | 111.6% | |||
Used vehicle purchasing and selling | 85 | (2.0%) | 211 | (4.2%) | 144 | (2.7%) | 68.4% | |||
Recycling | 589 | (16.5%) | 527 | (12.7%) | 854 | (13.9%) | 161.9% | |||
Other | 32 | (70.2%) | 36 | (75.4%) | -41 | (-) | - | |||
Adjustment | 9 | (-) | 9 | (-) | 14 | (-) | 143.0% | |||
Total | 20,570 | (51.7%) | 21,220 | (50.0%) | 23,779 | (49.4%) | 112.1% | |||
*1 | Net sales are sales to external customers and operating profit is based on business segment earnings. Operating margins (shown % in parenthesis) are calculated by dividing segment profit by segment sales. | 6 | ||||||||
*2 | Beginning with Q2 FY2022, the recycle business, which was previously included in "other," is a reportable segment. Figures for "recycling" and "other" have been revised to conform with this change. | |||||||||
1H FY2023 Reasons for Change in Operating Profit (Actual)
(Billion yen)
30
15
0
Net sales | Cost of sales | SG&A expenses | ||||||||||||||
Rise in vehicles consigned | 3.51bn | Increase in purchases | -1.48bn | Increase in welfare expenses | -0.10bn | |||||||||||
Rise in recycling | 1.98bn | Increase in cost of goods sold | -0.68bn | Increase in sales commission | -0.05bn | |||||||||||
Increase in fee rates | 0.94bn | Increase in outsourcing expenses | -0.25bn | Increase in fees paid | -0.05bn | |||||||||||
Increase in used vehicle purchasing | Increase in employee salaries and | Increase in depreciation | -0.04bn | |||||||||||||
and selling | 0.26bn | bonuses | -0.08bn | |||||||||||||
Decline in contract completion rate | -1.63bn | |||||||||||||||
-2.64-0.45 5.66
21.22 | 23.77 |
1H FY2022 | 1H FY2023 |
Copyright@ 2023 USS Co., Ltd. All Rights Reserved. | 7 |
Consolidated Balance Sheets and Statements of Cash Flows
- Increase in purchase of property, plant and equipment and purchase of intangible assets were the primary uses of cash for investing activities.
- The primary use of cash in financing activities was purchase of treasury shares and dividends paid.
- Equity ratio : 74.8%
Consolidated balance sheets (summary) | (Million yen) | |||||
FY22 | End of | FY22 | End of | |||
Q2 FY23 | Q2 FY23 | |||||
Current assets | 116,057 | 125,185 | Current liabilities | 39,273 | 49,979 | |
Cash and | Payables due to | |||||
92,692 | 93,086 | member dealers | 22,595 | 33,651 | ||
deposits | ||||||
at auction | ||||||
Other | 23,365 | 32,098 | Other | 16,678 | 16,328 | |
Non-current | 126,295 | 124,940 | Non-current | 8,925 | 9,724 | |
assets | liabilities | |||||
Property, plant | 100,604 | 99,938 | Total liabilities | 48,198 | 59,704 | |
and equipment | ||||||
Other | 25,690 | 25,002 | Total net assets | 194,154 | 190,422 | |
Total assets | 242,352 | 250,126 | Total liabilities | 242,352 | 250,126 | |
and net assets | ||||||
Consolidated statements of cash flows (summary) | (Million yen) | ||||
1H FY21 | 1H FY22 | 1H FY23 | Changes | ||
Net cash provided by (used | 14,982 | 20,051 | 21,324 | 1,273 | |
in) operating activities | |||||
Net cash provided by (used | -914 | -4,150 | -1,254 | 2,896 | |
in) investing activities | |||||
Free cash flow | 14,067 | 15,901 | 20,070 | 4,169 | |
Net cash provided by (used | -6,453 | -8,653 | -19,676 | -11,022 | |
in) financing activities | |||||
Capital expenditures | 927 | 1,201 | 1,260 | 58 | |
(terms of cash flows) | |||||
Depreciation | 2,446 | 2,249 | 2,238 | -11 | |
Copyright@ 2023 USS Co., Ltd. All Rights Reserved. | 8 |
Automobile Market
New car registrations and YoY changes | Used car registrations and YoY changes |
(Thousand vehicles) | (Thousand vehicles) | |||||
3,000 | 2,621 | 40% | 4,000 | |||
2,028 | 2,050 | 2,225 | ||||
1,923 | 20% | |||||
15.7% | ||||||
1,500 | 5.6% | 0% | 2,000 | |||
1.1% | ||||||
-6.2% | ||||||
-20% | ||||||
-22.6% | ||||||
0 | -40% | 0 | ||||
1H FY19 | 1H FY20 | 1H FY21 | 1H FY22 | 1H FY23 | ||
40% | ||||
3,393 | 3,263 | 3,221 | 3,088 | |
3,032 | ||||
20% | ||||
3.4% | 0% | |||
-1.3% | 1.8% | |||
-3.8% | ||||
-5.9% | ||||
-20% | ||||
-40% | ||||
1H FY19 | 1H FY20 | 1H FY21 | 1H FY22 | 1H FY23 |
Used car exports and YoY changes | AA market: vehicles consigned and contracted and YoY changes |
(Thousand vehicles) | (Thousand vehicles) | |||||
900 | 802 | 50% | 4,000 | |||
42.3% | ||||||
649 | 650 | 616 | 25% | |||
30.1% | ||||||
457 | ||||||
450 | 0% | 2,000 | ||||
-3.7% | -5.2% | |||||
-25% | ||||||
-29.6% | ||||||
0 | -50% | 0 | ||||
1H FY19 | 1H FY20 | 1H FY21 | 1H FY22 | 1H FY23 |
Vehicles consigned | Vehicles contracted | YoY(consigned) | YoY(contracted) | 40% | ||
3,519 | ||||||
3,382 | 3,345 | 3,939 | ||||
3,802 | ||||||
17.8% | ||||||
11.5% | 20% | |||||
4.5% | ||||||
-2.5% | 11.1% | 0% | ||||
-11.0% | ||||||
3.6% | 4.1% | |||||
-5.0% | ||||||
-12.0% | -20% | |||||
2,432 | 2,139 | 2,384 | 2,324 | 2,583 | ||
-40% | ||||||
1H FY19 | 1H FY20 | 1H FY21 | 1H FY22 | 1H FY23 |
- Vehicles consigned and contracted in 1H FY21 have been revised to reflect revisions to data announced by USEDCAR Co., Ltd.
Copyright@ 2023 USS Co., Ltd. All Rights Reserved. | 9 |
Auto Auction Segment (1) Overview
- Sales and earnings increased mainly due to increase in number of vehicles consigned and contracted and increase in fee income from higher auction fees.
Net sales and YoY changes | |||
(Million yen) | |||
40,000 | 36,468 | 30% | |
31,773 | 31,929 | 33,168 | |
28,246 |
No. of vehicles
consigned
1.533million
up 13.1% YoY
No. of contract
completions
0.950million
up 4.6% YoY
Contract
completion rate
62.0%
67.0% (in 1H FY22)
15% | ||||||
13.0% | 9.9% | |||||
20,000 | 3.9% | 0% | ||||
0.7% | ||||||
-11.1% | -15% | |||||
0 | -30% |
Auto auction segment performance in 1H
1H FY21 | 1H FY22 | 1H FY23 Year on year |
Net sales | 31,929 | 33,168 | 36,468 | 109.9% |
Consignment fees | 7,538 | 7,595 | 8,669 | 114.1% |
Contract completion fees | 7,394 | 7,619 | 8,329 | 109.3% |
Successful bid fees | 11,367 | 11,653 | 12,693 | 108.9% |
Other | 5,629 | 6,300 | 6,775 | 107.5% |
Operating profit | 19,852 | 20,434 | 22,807 | 111.6% |
Operating margin | 61.9% | 61.4% | 62.3% | - |
1H FY19 | 1H FY20 | 1H FY21 | 1H FY22 | 1H FY23 |
Operating profit and YoY changes | ||||||
(Million yen) | ||||||
30,000 | 60% | |||||
19,852 | 22,807 | |||||
20,434 | 30% | |||||
17,524 | 15,698 | 26.5% | ||||
15,000 | 2.9% | 11.6% | 0% | |||
-0.5% | ||||||
-10.4% | -30% | |||||
0 | 1H FY19 | 1H FY20 | 1H FY21 | 1H FY22 | 1H FY23 | -60% |
* Net sales are sales to external customers and operating profit is based on business segment earnings. Operating margins are calculated by dividing segment profit by segment sales.
Copyright@ 2023 USS Co., Ltd. All Rights Reserved. | 10 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
USS Co. Ltd. published this content on 06 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 11:19:04 UTC.