About IDOM. Business model and overview Corporate information ESG & IT. IDOM Inc.

Transcription

1 About IDOM Business model and overview Corporate information ESG & IT IDOM Inc.

2 Contents I. Business model and overview 3 Used-car distribution flow (past and present) 4 Competitiors and market information 10 New services 14 Dolphinet 16 Overseas business 17 II. Corporate information 18 IDOM Group 19 History of IDOM 20 Directors, Auditors and Advisers 22 III. ESG & IT 23 2

3 I. Business model and overview 3

4 Car distribution flow at IDOM s directly managed stores (past) General Customers Luxury foreign cars Foreign cars People movers Eco-cars Light cars Older model cars Appraisal Purchase(Stock) Pool Center Strictly controlled inventory period Auction Sites Approx. 120 sites Used-car dealers USS JU JAA LAA Wholesale B to B 4

5 Car distribution flow at IDOM s directly managed stores (present) General Customers Luxury foreign cars Foreign cars People movers Eco-cars Light cars Older model cars Appraisal Purchase(Stock) Retail Sales B to C Low price cars Light cars Original Gulliver Store Minivans Large-sized store Shopping mall Foreign cars Luxury foreign cars Strictly controlled inventory period Auction Sites Approx. 120 sites Used-car dealers USS JU JAA LAA Wholesale B to B 5

6 Original Gulliver store OUTLET (low price cars) 6

7 SNAP HOUSE (specialized in minivans) Gulliver MINICLE (specialized in light cars) 7

8 LIBERALA (specialized in foreign cars) LIBERALA (specialized in foreign luxury cars) 8

9 WOW! TOWN (large-sized store) HUNT (shopping mall) 9

10 Number of used cars purchased by 7 major companies in Japan (unit: cars) Source: Yano Research Institute, 2015 results of Used Car Distribution Industry 2017 No.1 in used car purchases (The total number of cars purchased by directly-managed stores and franchised stores) 200, , ,000 50,000 0 IDOM IDOM ラビット Rabbit T-UP T-UP アップル Apple カーチス Carchs U-POHS ユーポス CARSEVEN カーセブン 10

11 Used car prevalence in Japan and the U.S. Japan The U.S. Used New Used New 11

12 Car Max, the leading company in the U.S. used car market (unit: cars) 1,000, , ,000 Earnings before income taxes Wholesale Retail (unit: million dollars) 1,000 Earnings before income taxes 1,063 million dollars Number of wholesale 408 thousand cars 400, , Number of retail car sales 721 thousand cars 0 '11/2 '12/2 '13/2 '14/2 '15/2 '16/2 '17/2 '18/2 0 Source: Car Max Annual Reports 12

13 Survey among different age groups Increase in interest among younger generation in buying used cars Ratio of respondents who bought a used car for their first car Ratio of respondents who would consider buying a used car for their next car Ratio of respondents who would consider buying a used car more positively than before (unit: %) % 35% 38% (unit: %) % 51% 62% (unit: %) % 33% 42% s 30s 20s People in their 20s 20 years ago People in their 20s 10 years ago 0 40s 30s 20s 0 40s 30s 20s * Result from an internet survey conducted in August 2014 (target: 1000 persons) 13

14 New service (1) NOREL Monthly flat-rate car using service. Users can switch cars every 90 days, choosing from over 100 types to suit their lifestyle. Monthly flat-rate fees from 59,800 yen* *Fee (before consumption tax) includes: Vehicle insurance (voluntary insurance) Taxes (vehicle tax, weight tax) Safety inspection certificate Service image Example of a user who have the delivery of first car on September 20 Become a member Seach cars, make a reservation Free Monthly fee is charged from the day of delivery (pick up) Monthly flat-rate fee 9/20 Delivered 10/20 11/20 1/20 2/20 After 90 days, the user can reserve the next car The user can switch to the next car 14

15 New service (2) Gulliver FleMa Seller Buyer Customers who had their car appraised but have not accepted the offer Inspected by Gulliver Car put up on Gulliver FleMa Sold on Gulliver FleMa Contract commission 60,000 yen* C2C platform Contract commission 68,000 yen* Guarantee Maintenance Option * Commission fees for the vehicle price between 500,001 and 1,000,000 yen. The fees vary according to the vehicle price. * Gulliver FleMa (flea market) is formerly operated under the service name Kurumajiro 15

16 Dolphinet system Purchased vehicles are registered on Dolphinet and can be viewed at stores nationwide Registered information Detailed vehicle information Vehicle exterior / interior images Model / Make / Year / Distance driven Main equipment (options, features) Repair history Exterior conditions (small dents and scratches) Interior cleanliness (ranked 5 levels: A-E) Valuation score (out of 100) Remaining days in stock 16

17 Overseas business Used car exports The U.S. Used car purchases and sales (Directly operated) Australia New car dealers New Zealand Used car sales (Directly operated) 17

18 II. Corporate information 18

19 IDOM Group IDOM Inc. Direct Stores 488 Franchise Stores % 100% 100% 100% 100% 100% 100% Gulliver Insurance Co., Ltd. Smart Connect Motoren Global Co., Ltd. Direct Stores 2 100% Motoren Glanz Co., Ltd. Direct Stores 11 Consolidated Consolidated Tokyo My Car Sales Co., Ltd. Direct Stores 3 Consolidated Gulliver Australia Holdings 67% Buick Holdings Direct Stores 25 Consolidated Consolidated Direct Stores 3 Gulliver U.S.A. 100% Direct Stores 1 Gulliver EAST Consolidated Consolidated Gulliver New Zealand Direct Stores 2 Affiliated Australia USA New Zealand Consolidated Insurance agency Advertising agency BMW/Mini Dealer Overseas Business * The numbers of stores are as of February 28, Some of the subsidiaries are excluded in the above chart. 19

20 History of IDOM 1994 Establishment of Gulliver International Co., Ltd Listed on TSE Second Section (Fastest from establishment in record) Corporate Business Awards Share listing on the OTC market (Second shortest from establishment in record) Listed on TSE First Section Gulliver USA, Inc. established Launched Dolphinet system Established 500 stores network mainly with franchised stores Moved the headquarter to current location Started DUO management style by 2 presidents 2009 Started 10 year gurantee service 2010 Transferred shares of G-one Credit Services, the financial service subsidiary, to SBI Holdings IR Special Award (Japan Investor Relation Association) Became the first and only hyper growth company in Japan *The name used in the U.S. for a fast growing company which achieved 1 billion annual sales within 10 years from its establishment Received Porter Award Awarded 2 nd High Service Japan 300 (Service Productivity & Innovation for Growth) 20

21 History of IDOM Corporate Business Awards Motoren Global established (Started BMW/MINI dealer in Hokkaido) Opened first store in New Zealand Acquired Nakamitsu Motors which operates BMW/MINI dealers in Chiba and change the company s name to Motoren Glanz Launched the pre-delivery maintenance service center Opened the first large-scale showroom WOW! TOWN Makuhari Accelerated opening of display sales stores under midium-term business policy Renewed headquarter-bulk-appraisal system (implemented mobile device in car inspection at each stores) Ranked 29 th in Best Workplaces (Great Place to Work Institute Japan) Awarded for 7 consecutive years Received IT Japan Award 2012 (Nikkei Computer) Obtained 67% of shares in Buick Holdings Pty Ltd., the new car dealers in Western Australia Changed the company s name to IDOM, Inc. Started Gulliver Flema (Kurumajiro) service Started NOREL service Selected as 2017 Competitive IT Strategy Company (Ministry of Economy, Trade and Industry & Tokyo Stock Exchange) Best Workplaces ranked 18 th, highest ranking since

22 Directors, Auditors and Advisers (As of May 30, 2018) President Yusuke Hatori President Takao Hatori Internal Internal Born in Joined Gulliver in 1995, one year after its foundation. Set up several stores, starting with the Sapporo store. After serving as director, executive director, and senior executive director, appointed representative president and director in 2008 with the transition to a dual president structure. Currently responsible for corporate strategy, and supervises overseas business, franchise operations, and administration division, among others. Born in Joined Gulliver in 1995, one year after its foundation and established the first Kanto store. After serving as director, executive director, and senior executive director, appointed representative president and director in 2008 with the transition to a dual president structure. Currently responsible for corporate strategy and supervises directly managed businesses in general. Director Masaru Ohta Internal Born in 1964 and joined the Company in Appointed executive officer in Appointed director in Director Jun Sugie Outside Independent Director Born in Joined Ministry of Finance and worked as chief of the Tokyo Regional Taxation Bureau among other important posts.appointed director of IDOM in Currently serves as a Vice Chairman and Senior Director, The Investment Trusts Association, Japan. Director Koichi Noda Outside Independent Director Born in Graduated Harvard Business School. Held several executive positions including Executive Officer at Rakuten, Inc. Appointed director of IDOM in Currently serves as a Chief Human Resources Officer, Walmart Japan Holdings, K.K. Auditor (Full-time) Kunie Yanagawa Internal Served at Itochu Corporation before joining Union Optical Co., LTD., where he served as representative director and president and representative director and chairman. Subsequently held several board member positions at companies including a subsidiary of Gulliver. Appointed Audit & Supervisory Board member of Gulliver in Auditor Masakatsu Endo Outside Independent Director Tax accountant. Representative director of Wakaba Kaikei Center. Appointed Audit & Supervisory Board member of Gulliver in Honorary Chairman Kenichi Hatori Founded Gulliver in Appointed representative director and chairman of Gulliver in Appointed honorary chairman of Gulliver in Auditor Hiroto Nakamura Outside Independent Director Certified public accountant. Head of Nakamura Accounting Office. Appointed Audit & Supervisory Board member of Gulliver in Currently serves as outside Audit & Supevisory Board member of MANDARAKE INC. Adviser Hideo Yamada 12th Commissioner General of the National Police Agency. Appointed advisory of Gulliver in

23 III. ESG & IT 23

24 ESG/IT Important Issues 1 Achieve highly transparent used car market and create new usage value for cars Purchase used cars from customers at high transparent prices and provide good-quality, reliable cars through our national network of stores (approx. 500 stores) and help to enrich the car lifestyles of customers even if they are in regions where cars are just a necessity. Also pursue to create new value in use of cars. 2 Pursue CS-orientated management. Improve the motivation and workstyles of personnel who bring the customer satisfaction More than 120,000 retail units are sold at IDOM s directly-managed stores annually. Reflect the customer feedback and opinions in business management, as well as work to improve the development, motivation, and workstyles of more than 3,000* employees throughout Japan who are dedicated to satisfy our customers. 3 Utilize IT as our competitivenes Aim for growth by taking advantage of our culture of integrating IT in our business. Also use IT to initiatives aimed at ESG issues. 4 Reinforce risk management and corporate governance Reinforce operational risk management to improve sustainable corporate value. Incorporate investor opinions in efforts to improve corporate governance issues. *IDOM non-consolidated, directly-managed stores 24

25 Issue 2 CS management Use CS data analysis to improve business A dedicated team monitors feedback from customers as core benchmarks. Link to improvements to operations and business. CS survey Q. Would you use this store again? (%) 2% 2% 1% 100 Reflect in HR evaluations Use customer satisfaction rates in addition to performance to evaluate employees and stores % 45% 35% % 53% 64% 0 11/2 14/2 17/2 Definitely want to use again Want to use again Do not want to use again/definitely do not want to use again Aggregate CS survey cards from customers who use directly-managed stores. 25

26 Issue 2 Initiatives related to motivation and workstyles Workplace improvement Evaluations by external institutions (Ranked as a top company in Best Workplaces for seven consecutive years) "Best Workplaces" ranking Sakura Project promoting women's active participation in the workplace Promoting women s active participation in the workplace. Epmloyees taking a leading role in creating the culture 1,000 or more employees group 18th Increasing productivity Improving work efficiency by incorporating mobile devices for store operations Using BI tool to centralize management data 29th Reinforce work time management Conducted by the Great Place to Work Institute Japan Survey on state of corporate initiatives and employee awareness (participating companies: 379 companies in 2017) 26

27 Issue 3 IT use Promote company-wide IT utilization Creating structure and culture that can actively utilize IT in business (Established dedicated team Team X ) Competitive IT Strategy Company 2017 IT personnel development Maximizing efficacy by conducting IT-ROI evaluations for IT investments I. Management 100% 80% External evaluations IT Japan Award 2012 (Conducted by Nikkei Computer) V. Evaluation 60% 40% 20% 0% II. Strategic IT use "Competitive IT Strategy Company 2017" (METI, Tokyo Stock Exchange) IV. Platform III. System, personnel Average for all industry Wholesale IDOM 27

28 ESG/IT Core Initiatives Environment Society Governance IT Highly transparent used car distribution and recycling-based business model Reducing environmental load Improve employee motivation Workstyle reform Personnel development Focus on diversity, women s active participation Offer new usage value for cars Coexist with communities Pursue customer satisfaction Reliability Social support Continuous improvement to corporate value through engagement Operations risk management IT use FY IDOM non-consolidated sales (in units) Retail: 125,151; Wholesale: 95,728 Promoting paperless operations (digitization of sales contracts, online sharing of internal documents, etc. ) Installing LED lighting in the headquarter and stores Use external evaluations (ranked as a top company in Best Workplaces for seven consecutive years ) Reforming workstyles and improving productivity by IT utilization Reinforcing work time management and operating hot-line Education system (training system, e-learning, etc.) CS-focused personnel evaluation system Promoting corporate culture that does not have stereotypes related to nationality, gender, etc. "Sakura Project" - Support for women's active participation in the workplace NOREL used car utilization service that allows vehicle switching and car sharing (launched in 2016) Nationwide store openings, coexistence with local communities (number of directly-managed stores: 488, as of February 2018) Inventory sharing system to enable sales of reliable, good-quality cars throughout Japan Continue CS surveys Conduct regular blind surveys by third parties Return system, up to 10 year warranty service, etc. For each car purchased or sold, a donation is made to UNICEF through UNICEF Support Gifts in which customer can choose from a selection of gifts (since 2011). Reflect investor opinions in management and IR activities (IR meetings held: approx. 300 in FY2018) Compliance education and enlightenment activities (hold compliance tests, establish compliance internal web sites, distribute internal newsletters) Fair Evaluation Committee established Reinforce rules and regulations (information security regulations, personal information management regulations, etc.) Operate whistleblowing system Create organization that can integrally promote business and IT 28