Developing New Markets Outside New Zealand

「As a result of increased export sales volumes to Europe through initiatives to develop new markets and customers, which the company pursued while market conditions in New Zealand remained weak, sales volumes rose 18.1% year on year to 49,611 units.」

「Against the business backdrop described above, export sales volumes at ㈱日貿, the core operating subsidiary of the Import/Export segment, were 22,049 vehicles during the interim consolidated accounting period, up 11.8% year on year. Although total imports into the company’s core New Zealand market were trending down, volumes were maintained at the same level as the previous year, while exports to Europe increased through the development of new markets and customers.」

「During the current interim consolidated accounting period, the company acquired shares in Autocare Services Pty Ltd and made it a consolidated subsidiary. Details are provided under “Part IV. Financial Information, 1. Interim Consolidated Financial Statements, Notes to the Interim Consolidated Financial Statements (Business Combinations, etc.).” In addition, Autocare Holdings Pty Ltd and Vehicle Inspection Technology Authority Pty Ltd were newly established and made consolidated subsidiaries. AutoSolix Pty Ltd was newly established as a joint venture and made an equity-method affiliate.」

「During the fiscal year, the company acquired major new-vehicle dealer group Autopact Pty Ltd, which operates new-vehicle sales through more than 100 stores representing 28 dealerships and 35 brands, and acquired 91.7% of its shares. The company plans to enter related automotive businesses and peripheral automotive businesses and build a value chain suited to the market.」

「The acquisition of shares in Autopact will enable the company to quickly build and strengthen its Australian model by expanding local service locations and coordinating with its existing businesses.」

「During the second quarter of the current fiscal year, Global Carz Pty Ltd, which had been an unconsolidated subsidiary, became a consolidated subsidiary. In addition, Car Empire Pty Ltd and IWholesaleCars Pty Ltd were newly established as equity-method affiliates. At a meeting of the Board of Directors held on 25 September 2023, the company resolved to acquire 91.7% of the shares of AUTOPACT PTY LTD, an Australian automotive sales company (“AUTOPACT”), and entered into a share purchase agreement on the same day. The acquisition date is scheduled for 24 November 2023. The estimated acquisition consideration is ¥25,000 million.」

「From the first quarter of the current fiscal year, the Group changed its reportable segments in segment information from the previous four categories of “Trade,” “Logistics,” “Services” and “Inspection” to five categories: “Trade,” “Logistics,” “Services,” “Inspection” and “Australia.” This change was made because the structure for promoting businesses based on the Australian model had been established and the importance of the Australian business was expected to increase going forward, so the Australian business was separated as an independent reportable segment.」

「In Australia, taking into account the market’s characteristics as a primarily new-vehicle market, the company is building a business model that can be completed within the market, including automotive sales and data services, while also developing an Australian model that leverages the value-chain expertise cultivated in New Zealand.」

「Through its wholly owned subsidiary Optimus Group Australia Pty Ltd (“OPT AU”), the company acquired additional shares in Blue Flag Pty Ltd (“Blue Flag”), which provides data services in Australia, and made it a consolidated subsidiary.」

「At a meeting of the Board of Directors held on 15 September 2022, the company decided to acquire an additional 20% stake in Blue Flag Pty Ltd, which provides data services in Australia, through its wholly owned subsidiary Optimus Group Australia Pty Ltd (head office: New South Wales, Australia; “OPT AU”). As a result, the company’s ownership interest in Blue Flag increased from the current 40% to 60%, and Blue Flag became a consolidated subsidiary effective 1 November 2022.」

「In addition, the company was able, as in the previous fiscal year, to offset the impact of logistics backlogs in New Zealand through increased exports to other countries,」

「The Group will expand its business operations into regions outside New Zealand. While focusing on Australia, we will also pursue business opportunities in Asian countries, including Indonesia.」

「The company was able to offset the recovery trend in demand for used vehicles, which had continued since the second half of the previous fiscal year, and the impact of the aforementioned lockdown through increased exports to other countries.」

「The company was able to offset the recovery trend in demand for used vehicles, which had continued since the second half of the previous fiscal year, and the impact of the aforementioned lockdown through increased exports to other countries.」

「From the first quarter of the current fiscal year, OzCar Pty Ltd has been included within the scope of equity-method accounting following an additional investment.」

「The Group will expand its business operations into regions outside New Zealand. While focusing on Australia, we will also pursue business opportunities in Asian countries, including Indonesia.」

「Although it does not qualify as a specified subsidiary, Optimus Group Australia Pty Ltd was newly established during the third quarter of the current consolidated accounting period and has therefore been included in the scope of consolidation.」

「The Group will expand its business operations into regions outside New Zealand. Focusing on Australia and, further, Asian and African countries including Indonesia, we will actively develop new markets after assessing market size, preference for Japanese vehicles, used-vehicle trends, and other factors.」