The business environment for the fiscal year ended in March 2014 was characterized by lower overall demand in the first half, as new-car sales declined in the absence of subsidies for purchases of fuel-efficient cars, and a second-half demand surge driven by consumers rushing to buy new and used vehicles, and automotive goods, ahead of the April 1, 2014 consumption tax hike.

AUTOBACS Chain stores in Japan recorded an overall 1.3% year-on-year net sales decline in the automotive goods business, as higher tire and wheel sales were outweighed by factors such as lower unit prices for car navigation systems. The number of cars undergoing statutory safety inspections in the safety inspections and maintenance business rose by 1.3%, to around 580,000. And in the automobile purchase and sales business, we increased the number of franchises to 359, from 244 a year earlier, and achieved a 25.5% leap in overall vehicle unit sales, to roughly 23,100.

Reflecting such store-level sales results, the Company’s consolidated net sales rose by 0.7% year on year, to ¥231.7 billion. With the added impact of a higher gross margin, success in controlling selling, general and administrative expenses, and factors such as progress in boosting operating efficiency at store subsidiaries, operating income rose by 9.4% to ¥13.9 billion. Net income went up by 28.9% to ¥9.8 billion.