USS CO., LTD. FY223
Consolidated Results
of Operations
USS Co., Ltd.
May 2024
*There was a 2-for-1 split of common stock on April 1, 2024. Earnings and dividends per share in this presentation have been adjusted to reflect this stock split.
FY2023 (FY3/2024) : from April 1, 2023 to March 31, 2024
Contents
Ⅰ ：FY2023 Results of Operations | P.3 | Ⅲ：Market Overview and Strategy for Creating Value Over the Medium-term | P.21 | |||
1. | Highlights of FY2023 | 1. | Used Car Auction Market and USS Market Share | |||
2. | FY2023 Summary of Consolidated Results of Operations | 2. | Medium-toLong-Term Management Goal | |||
3. | Net Sales and Operating Profit by Business Segment | 3. | Cash Allocation Policy | |||
4. | FY2023 Reasons for Change in Operating Profit (Actual) | 4. | Investment for Growth | |||
5. | Consolidated Balance Sheets and Statements of Cash Flows | 5. | Medium-term Business Plan and Raising the ROE | |||
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：FY2024 Consolidated Forecast | P.17 | Ⅳ： Reference | P.31 | ||||
1. | FY2024 Consolidated Forecast | 1. | Business Models for USS | ||||
2. | FY2024 | Reasons for Change in Operating Profit (Forecast) | 2. | Automobile Market and USS Revenue | |||
3. | FY2024 | Forecast by Business Segment | 3. | New/Used Car Registrations and Auto Auction Market | |||
4. | Appendix | ||||||
Copyright＠ 2024 USS Co., Ltd. All Rights Reserved. | 2 |
FY2023
Results of Operations
Copyright＠ 2024 USS Co., Ltd. All Rights Reserved. | 3 |
Highlights of FY2023
FY23 Results
- Net sales ¥97.6 billion
(up 9.9% YoY)
- Operating profit
¥48.9 billion (up 11.8% YoY)
-
USS Auto Auction result in FY2023:
vehicles consigned was 3.084 million (up 4.3% YoY), contract completions was 1.986 million (up 6.6% YoY), contract completion rate was 64.4% - In the used vehicle purchasing and selling segment, sales and earnings increased because of the larger number of vehicles sold.
- In the recycle segment, sales increased and earnings decreased. The number of large factory demolition orders increased but there were higher outsourcing and personnel expenses.
FY24 Forecast
- Net sales ¥101.9 billion
- Plans for FY2024 is 3.10 million vehicles consigned at auctions, 2.00 million contracted vehicles, and contract completion ratio of 64.5%
- Operating profit ¥51.5 billion
Copyright＠ 2024 USS Co., Ltd. All Rights Reserved.
Earnings Distributions
-
Dividend forecast
(After 2-for-1 stock split) FY2023 ¥37.7(plan) FY2024 ¥40.2*(forecast) - This will be the 25th consecutive year of dividend increases.
- Total payout ratio : at least
80% (by FY2026)
- Maintain a consolidated dividend payout ratio of at least 55%
- Flexible stock repurchases
- Investments for growth of more than ¥20 billion during the three-year period ending in March 2027
4
FY2023 Summary of Consolidated Results of Operations
- Sales was up 9.9% YoY to ¥97.60 billion, operating profit was up 11.8% to ¥48.93 billion, and profit attributable to owners of parent up 9.7% to ¥32.90 billion.
- Record-highsales, operating profit, ordinary profit and profit attributable to owners of parent
FY2022 | (per sales) | FY2023 | (per sales) | Year on year | Revised plan | (per sales) |
(Nov. 7, 2023) | ||||||
(Million yen)
VS. plan
Net sales | 88,778 | 97,606 | 109.9% | 95,400 | 102.3% | |||||
Cost of sales | 35,135 | 39.6% | 38,571 | 39.5% | 109.8% | 38,038 | 39.9% | 101.4% | ||
Gross profit | 53,642 | 60.4% | 59,034 | 60.5% | 110.1% | 57,361 | 60.1% | 102.9% | ||
Selling, general and | 9,864 | 11.1% | 10,097 | 10.3% | 102.4% | 10,261 | 10.8% | 98.4% | ||
administrative expenses | ||||||||||
Operating profit | 43,778 | 49.3% | 48,937 | 50.1% | 111.8% | 47,100 | 49.4% | 103.9% | ||
Ordinary profit | 44,491 | 50.1% | 49,654 | 50.9% | 111.6% | 47,810 | 50.1% | 103.9% | ||
Profit attributable to | 30,008 | 33.8% | 32,906 | 33.7% | 109.7% | 31,900 | 33.4% | 103.2% | ||
owners of parent | ||||||||||
Copyright＠ 2024 USS Co., Ltd. All Rights Reserved. | 5 |
Net Sales and Operating Profit by Business Segment
(Million yen) | ||||||||
Net sales | FY2021 | FY2022 | FY2023 | Year on year | ||||
Auto auction | 64,858 | 69,304 | 75,066 | 108.3% | ||||
Used vehicle purchasing and selling | 9,300 | 10,391 | 11,431 | 110.0% | ||||
Recycling | 7,238 | 8,982 | 10,526 | 117.2% | ||||
Other | 85 | 99 | 580 | 583.6% | ||||
Total | 81,482 | 88,778 | 97,606 | 109.9% | ||||
Operating profit (operating margin) | FY2021 | FY2022 | FY2023 | Year on year | ||||
Auto auction | 40,217 | (61.7%) | 42,267 | (60.7%) | 47,414 | (62.9%) | 112.2% | |
Used vehicle purchasing and selling | 136 | (1.5%) | 130 | (1.3%) | 331 | (2.9%) | 254.9% | |
Recycling | 1,142 | (15.8%) | 1,333 | (14.8%) | 1,164 | (11.1%) | 87.3% | |
Other | 58 | (68.0%) | 27 | (28.0%) | -18 | (-) | - | |
Adjustment | 19 | (-) | 18 | (-) | 45 | (-) | 249.2% | |
Total | 41,574 | (51.0%) | 43,778 | (49.3%) | 48,937 | (50.1%) | 111.8% | |
*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 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. | |
FY2023 Reasons for Change in Operating Profit (Actual)
(Billion yen)
40
20
0
Net sales | Cost of sales | SG&A expenses | ||||||||||||||
Rise in vehicles consigned | 2.39bn | Increase in purchases | -1.20bn | Increase in depreciation | -0.11bn | |||||||||||
Increase in fee rates | 1.84bn | Increase in cost of goods sold | -0.87bn | Increase in welfare expenses | -0.10bn | |||||||||||
Rise in recycling | 1.54bn | Increase in outsourcing expenses | -0.33bn | Increase in provision of allowance for | ||||||||||||
Increase in used vehicle purchasing | Increase in expenses for supplies | -0.24bn | doubtful accounts | -0.06bn | ||||||||||||
and selling | 1.04bn | Increase in employee salaries and | ||||||||||||||
Rise in contract completion rate | 0.92bn | bonuses | -0.22bn | |||||||||||||
-0.23
8.82-3.43
43.77 | 48.93 |
FY2022 | FY2023 |
Copyright＠ 2024 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 dividends paid and purchase of treasury shares.
- Equity ratio : 72.0%
Consolidated balance sheets (summary) | (Million yen) | |||||
FY2022 | FY2023 | FY2022 | FY2023 | |||
Current assets | 116,057 | 148,371 | Current liabilities | 39,273 | 63,130 | |
Cash and | Payables due to | |||||
92,692 | 109,009 | member dealers | 22,595 | 43,749 | ||
deposits | ||||||
at auction | ||||||
Other | 23,365 | 39,361 | Other | 16,678 | 19,380 | |
Non-current | 126,295 | 123,186 | Non-current | 8,925 | 9,404 | |
assets | liabilities | |||||
Property, plant | 100,604 | 98,996 | Total liabilities | 48,198 | 72,535 | |
and equipment | ||||||
Other | 25,690 | 24,189 | Total net assets | 194,154 | 199,021 | |
Total assets | 242,352 | 271,557 | Total liabilities | 242,352 | 271,557 | |
and net assets | ||||||
Consolidated statements of cash flows (summary) | (Million yen) | ||||
FY2021 | FY2022 | FY2023 | Changes | ||
Net cash provided by (used | 36,630 | 36,907 | 47,150 | 10,242 | |
in) operating activities | |||||
Net cash provided by (used | -1,339 | -9,074 | -2,646 | 6,428 | |
in) investing activities | |||||
Free cash flow | 35,290 | 27,832 | 44,504 | 16,671 | |
Net cash provided by (used | -24,680 | -17,121 | -28,187 | -11,065 | |
in) financing activities | |||||
Capital expenditures | 2,036 | 4,567 | 2,666 | -1,901 | |
(cash payments) | |||||
Depreciation | 4,959 | 4,626 | 4,600 | -25 | |
Copyright＠ 2024 USS Co., Ltd. All Rights Reserved. | 8 |
Automobile Market
New car registrations and YoY changes
(Thousand vehicles) | (Thousand vehicles) | ||||
6,000 | 40% | 8,000 | |||
5,038 | 4,656 | ||||
4,215 | 4,385 | 4,528 | |||
20% | |||||
3,000 | 4.0% | 0% | 4,000 | ||
3.3% | |||||
-4.2% | -7.6% | -9.5% | |||
-20% | |||||
0 | -40% | 0 | |||
FY19 | FY20 | FY21 | FY22 | FY23 | |
Used car registrations and YoY changes | |||||
6,929 | 6,907 | 30% | |||
6,566 | 6,451 | ||||
6,293 | 20% | ||||
10% | |||||
2.5% | 0% | ||||
-0.4% | -0.3% | ||||
-4.9% | -4.2% | ||||
-10% | |||||
-20% | |||||
-30% | |||||
FY19 | FY20 | FY21 | FY22 | FY23 |
Used car exports and YoY changes | AA market: vehicles consigned and contracted and YoY changes |
(Thousand vehicles) | (Thousand vehicles) | |||||
1,800 | 1,603 | 80% | 9,000 | |||
1,286 | 1,222 | 1,290 | 40% | |||
1,041 | ||||||
900 | 17.3% | 24.3% | 0% | 4,500 | ||
5.6% | ||||||
-2.7% | ||||||
-19.0% | -40% | |||||
0 | -80% | 0 | ||||
FY19 | FY20 | FY21 | FY22 | FY23 |
Vehicles consigned | Vehicles contracted | YoY(consigned) | YoY(contracted) | 40% | ||
7,771 | ||||||
7,556 | 7,077 | 7,275 | ||||
6,892 | ||||||
8.5% | 20% | |||||
1.9% | 5.6% | |||||
1.2% | ||||||
-3.9% | ||||||
6.8% | 0% | |||||
2.2% | ||||||
0.0% | -2.6% | |||||
-6.3% | ||||||
-20% | ||||||
4,814 | 4,628 | 4,718 | 4,821 | 5,232 | ||
-40% | ||||||
FY19 | FY20 | FY21 | FY22 | FY23 |
- Vehicles consigned and contracted in FY21 have been revised to reflect revisions to data announced by USEDCAR Co., Ltd.
Copyright＠ 2024 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 increase in fee income from higher auction fees.
Net sales and YoY changes | |||
(Million yen) | 75,066 | ||
80,000 | 30% | ||
69,304 | |||
63,350 | 61,048 | 64,858 | |
No. of vehicles
consigned
3.084million
Up 4.3% YoY
No. of contract
completions
1.986million
Up 6.6% YoY
Contract
completion rate
64.4％
63.0% (in FY22)
15% | |||||
40,000 | 6.2% | 6.9% | 8.3% | 0% | |
-2.1% | -3.6% | ||||
-15% | |||||
0 | -30% |
Auto auction segment performance
FY21 | FY22 | FY23 | Year on year | |||
Net sales | 69,304 | 75,066 | 108.3% | |||
64,858 | ||||||
Consignment fees | 15,198 | 16,570 | 17,501 | 105.6% | ||
Contract completion fees | 15,088 | 15,721 | 17,436 | 110.9% | ||
Successful bid fees | 23,076 | 23,985 | 26,501 | 110.5% | ||
Other | 11,494 | 13,027 | 13,626 | 104.6% | ||
Operating profit | 40,217 | 42,267 | 47,414 | 112.2% | ||
Operating margin | 61.7% | 60.7% | 62.9% | - | ||
FY19 | FY20 | FY21 | FY22 | FY23 |
Operating profit and YoY changes | ||||||
(Million yen) | 47,414 | |||||
50,000 | 40% | |||||
40,217 | 42,267 | |||||
35,436 | 35,463 | 20% | ||||
25,000 | 13.4% | 12.2% | 0% | |||
5.1% | ||||||
0.1% | ||||||
-2.4% | ||||||
-20% | ||||||
0 | FY19 | FY20 | FY21 | FY22 | FY23 | -40% |
* 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＠ 2024 USS Co., Ltd. All Rights Reserved. | 10 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
USS Co. Ltd. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 01:56:05 UTC.
