Currently, with the shift to electric vehicles and autonomous driving technology, the automotive industry is seeing not only the evolution of vehicles themselves, but also significant changes to car-related values, such as car sharing and other changes in the shape of car ownership. Furthermore, with new modes of transportation emerging to replace cars, the industry is at a major turning point.
Competition in the automotive aftermarket sector, in which the Company operates, is becoming increasingly intense. In addition to traditional automotive goods and services stores, e-commerce sites and discount stores increase their sales of automotive goods and services, dealers expand their areas of business, and companies in different industries enter the market through M&A.

Under these conditions, in order to provide a safe, secure, and enjoyable mobility lifestyle for all car users, the Group will build on its core business of automotive goods and services sales, which has been its foundation since its establishment, while expanding into businesses areas such as vehicle purchasing and sales, statutory safety inspection and maintenance services, and vehicle insurance, in order to fulfill its role as an infrastructure that resolves all vehicle-related troubles. In this way, we will evolve into an “integrated mobility after-sales market player” that comprehensively addresses customersʼ diverse needs, and support society as a local mobility maintenance hub.
As a growth strategy, the establishment of a business model that eliminates the hassle in providing mobility lifestyles will be positioned as a key measure, translated into a concrete plan, and steadily implemented. This will be done by establishing a competitive advantage in the revenue pillars of tire sales and vehicle maintenance, strengthening points of contact with customers through a wide range of products and services, and utilizing customer data and vehicle data.
In May 2023, we announced our long-term vision “Beyond AUTOBACS Vision 2032,” which sets a goal of achieving consolidated net sales of 500.0 billion yen by FY2032. On the premise of expanding existing businesses and creating new businesses, we have set number of stores, number of vehicles inspected, and number of vehicles purchased and sold as domestic KPIs.

 

In May 2023, we announced our long-term vision “Beyond AUTOBACS Vision 2032,” which sets a goal of achieving consolidated net sales of 500.0 billion yen by FY2032. On the premise of expanding existing businesses and creating new businesses, we have set number of stores, number of vehicles inspected, and number of vehicles purchased and sold as domestic KPIs.

In FY2024, we began our Medium-term Business Plan “Accelerating Towards Excellence” aimed at achieving our long-term vision. The plan promotes various measures under the three pillars of “creating touch points,” “developing and supplying products and solutions,” and “establishing new business domains.”
In FY2024, the first year of the plan, we got off to a strong start that exceeded our initial plan, increasing sales and profits with net sales of 249.5 billion yen, operating income of 12.1 billion yen, and profit attributable to owners of parent of 8.1 billion yen. This performance is attributed in part to the results of ongoing internal reforms, and has brought about a sense of unprecedented certainty.
In FY2024, in addition to changes in our franchise chain package, we consolidated and rationalized headquarters functions through the promotion of supply chain management and reassigned franchise headquarters (hereinafter, “headquarters”) personnel to stores. I believe it demonstrates significant potential for future growth that we were able to generate revenue exceeding the cost of transformation and work together as a company to achieve our targets, without any particularly favorable external factors.
In order to accelerate the creation of touch points, we also conducted multiple M&As in the Consumer Business. In August 2024, we made a subsidiary of Otoron Co., Ltd., which operates used car dealerships that provide in-house loans, and in October 2024, we made a subsidiary of Tokatsu Holdings Co., Ltd., which operates authorized Honda dealerships. Furthermore, in January 2025, we made a subsidiary of tire dealer BEE LINE Corporation and in April 2025, we made a subsidiary of JCA Co., Ltd., which engages in sales of automotive goods and services and vehicle maintenance services at DIY stores. Through these acquisitions, we have significantly expanded our retail locations.
We are currently working to create synergy between these new subsidiaries and AUTOBACS SEVEN and its Group companies. To strengthen ties between our Group companies, in addition to creating opportunities for mutual communication, we will share the Group philosophy, integrate systems, and otherwise strengthen PMI, aiming to promote Group-wide business expansion. Furthermore, as the parent company, AUTOBACS SEVEN will promote the sharing of assets and business infrastructures across the Group and make prompt decisions regarding IT systems, logistics, and other investments that contribute to cross-business collaboration and scale-ups.
In this way, we will focus on PMI for new subsidiaries and creating business synergy with existing businesses, aiming to achieve net sales of 280.0 billion yen and operating income of 15.0 billion yen, which are our targets for FY2026, the final year of the Medium-term Business Plan.

When I was appointed as Chief Executive Officer in 2022, I individually visited each franchisee in Japan. During these visits, franchisees who work diligently every day with pride in the AUTOBACS brand asked a question that sincerely resonated with me: “We are dedicating our lives to this job -- are you doing the same?” Taking these words to heart, I have clearly demonstrated my unwavering resolve in how I will approach this mission and meet everyone’s expectations.
Through these visits, I strongly felt first-hand that there is a deep emotional connection between AUTOBACS and its franchisees that extends beyond a general “franchise agreement,” and that a culture has taken root in which headquarters and franchisees mutually support and elevate each other.

Based on this strong relationship, as part of reforms aimed at promoting regrowth for AUTOBACS, I decided to revise the franchise chain package, including the royalty rate. This change was implemented in April 2024. AUTOBACS SEVEN, as headquarters, shifted its business model from relying on wholesale profits from conventional product supply to one that receives royalties on franchisee sales. In conjunction, we are including sales promotion and DX tools in the franchise chain package and implementing these uniformly at all stores, aiming to enhance the effectiveness of policy implementation and increase customer satisfaction.
With this change, we promised all franchisees that the headquarters would move forward together with them as holders of a “true shared destiny.” Going forward, our business will not succeed without the growth of franchisee sales. Even so, this model was adopted based on the decision to build a shared future with franchisees in addition to a relationship of strong trust.

I believe it was a significant change to renew the business model established by our founder on the milestone of our 50th anniversary. However, many franchisees have expressed the forward-thinking sentiment, “Development cannot be achieved by simply extending the status quo. The headquarters has taken the first step toward transformation, so we must change as well.”
Many of the AUTOBACS chain franchisees have been with us for as long as 40 to 50 years. Until recently, it had been a long time since we had recruited new franchisees. However, in 2024, we launched the AUTOBACS CARS chain, a new chain that engages in the purchase and sale of used cars, marking the first time in many years that we welcomed new franchisees from outside the Group. With this change, I believe that existing franchisees can also feel that the franchise business is entering a new phase.
If we can set aside past conventions and customs to further strengthen the relationship between the headquarters and franchisees and move forward together, I am certain that AUTOBACS can achieve strong growth once again.

While we have formulated Medium-term Business Plans in the past, we have been unable to achieve the expected results. Upon reflection, one of the reasons for this may be lack of communication between the members of management that formulate the plans and the members in the field responsible for implementation.
In order for a business plan to be steadily implemented and to achieve results, it is important that each employee understands its policies and strategies and executes them with a shared understanding on a company-wide level.
For the 2024 Medium-term Business Plan, we used a non-conventional approach in which the plan is promoted in a consistent manner across companies and departments from the planning through execution stages by task teams composed of young mid-level members responsible for next-generation management. Having core members responsible for practical operations formulate a plan upon envisioning specific measures for the implementation stage has increased its viability and led to the creation of a plan with driving force. In addition, seamless collaboration from plan formulation to execution has significantly improved the speed of progress.
Furthermore, managers and task teams from each business participate in department and subsidiary meetings and encourage conversation about the Medium-term Business Plan, which has promoted understanding and permeation of the plan. This has led to a gradual increase in employees who resonate with the transformation and initiative behavioral change, and the steady cultivation of an organizational culture that embraces change.
The series of initiatives implemented through this Medium-term Business Plan have not only improved the effectiveness of implementation but also contributed to transforming the organizational culture, which I view as an important element in accelerating the AUTOBACS Group’s growth to the next level.
I also personally repeatedly communicate the Company’s purpose, philosophy, and vision to each employee through the intranet and at the regular online meetings attended by department managers and subsidiary presidents.
I believe that fostering an organization that takes the initiative to bring about change without fear through this repeated communication is one of my important missions as a representative, and that it is an essential element of the Company’s sustainable growth.

In order for a company to achieve sustainable success going forward, it is clear that promoting DX through the use of AI will be the key to improving productivity. However, I believe that a company’s intrinsic value lies within jobs only people can do.
There are numerous jobs at the AUTOBACS SEVEN Group that cannot be replaced by AI, such as customer service and vehicle maintenance. These experiences and skills are a strength that we have accumulated over many years, and are the true source of value.
I encourage employees to take charge of shaping their own careers and acquire the necessary skills, whether they choose the path of creating value through establishing mechanisms in the office or the path of providing value through uniquely human roles at our stores.
The personnel system that forms the foundation for this has undergone a gradual renewal over the past three years to make it possible for all employees to make career choices based on their diverse work styles and skills. As a result, it has evolved into the current system that spotlights employees’ expertise and strengths.

From an education perspective, we are promoting the acquisition of highly specialized skills such as certified mechanics and reskilling aimed at improving IT literacy. As an example, we implemented an IT and DX reskilling program for all employees in order to improve and streamline operations for store management and headquarters functions. Furthermore, through our subsidiary AUTOBACS Digital Initiative Co., Ltd., we are actively investing in human capital through the development of human resources engaged in data analysis using business intelligence tools, training on generative AI, and more. Through such initiatives, we aim to build a solid HR infrastructure that supports our management strategy.

I consider it my important obligation as an executive to strike the right balance to satisfy all of our stakeholders, which include our customers, shareholders, investors, suppliers, franchisees, employees, and members of local communities.
Maintaining an equal balance among these is not always the right answer. The balance must be flexibly changed based on the situation. We are currently focusing on business transformation including changes to the franchise chain package and reforming organizational culture, with a priority on growth investments.
While we have yet to demonstrate sufficient results, first, we will begin by ensuring that we achieve the targets of the 2024 Medium-term Business Plan that is currently underway, and clearly outlining the path toward the long-term vision that lies beyond it.
In order to enhance corporate value, it is essential that we adopt investor-focused initiatives internally as well. As one such initiative, in 2019, we introduced a restricted stock compensation plan for directors, and in 2024, we granted stocks to Group employees on the occasion of the AUTOBACS 50th anniversary.
I have also increased the proportion of stock-based compensation for myself, further reinforcing my commitment to approaching management with the same perspective as our investors.

With its network of over 1,000 stores nationwide, the AUTOBACS SEVEN Group will mobilize all available resources to resolve all kinds of car-related concerns.
In order to successfully grow into an essential corporate group that supports a safe, secure, and enjoyable mobility lifestyle for all car users even more than ever before, we will further strengthen ties with our franchisees and other partners, accelerate transformation, and achieve sustainable growth.
I appreciate your continued support and interest going forward.