Storm CORPORATE RESEARCH・ストームコーポレート

26th June 2024

VT Holdings (7593, Corporate)

Share price: ¥510

Initiating coverage: Car dealer M&A

Market cap: ¥62.5bn

We expect VT Holdings' car dealer M&A strategy, significant overseas exposure & expanding housingbusiness to drive long-term growth.
•Company sector

company to expand despite a shrinking domestic auto market. As of FY 3/24, it had 57
subsidiaries & a 57:43 domestic:overseas sales split, with 45% of sales & 68% of GP
regarded as stock income.

Specialty Retail (GICS Industry)
Stock data
Price (¥)
Mkt cap (¥bn)/($m)
52-week range (¥)
Shares O/S (m)Average daily value ($m)
Free float (%)
Foreign shareholding (%)
TickerExchange
Net Debt/Equity (x)VT Hdgs’s core business is its new car dealerships, & its focus on M&A enables the510
62.5 / 390.5
478 - 553
122.6
0.9
74.9
14.5
7593
Tokyo Prime•

The company finished FY 3/24 in line with its 2 nd revised company estimate, above its
original sales forecast due to better-than-expected manufacturer production recovery,& in line with its original OP forecast due to ¥1bn in unexpected impairment losses. OP
declined YoY against a particularly strong FY 3/23 that was flattered by negative
goodwill.

•

The Auto Sales Related division was broadly in line despite a weak overseas market
causing used car GPM deterioration. The company expects GPM improvement in FY
3/25, & expects production recovery to allow it to fulfil its approx. 7,000 March 2024 carorder backlog with the aim of reducing it to a more normalised level of 4,000.

•

Whilst Housing-related FY 3/24 sales & OP were in line with forecast, the company
expects strong demand & brand recognition to facilitate +10-20% annual sales & OPgrowth in the medium term. VT Hdgs is able to keep store construction in-house.

•

Although VT Hdgs has forecast record high FY 3/25 earnings, it considers the estimatesconservative due to uncertainties regarding new & used car price fluctuations, & has
included no assumption for likely M&A deals. It also sees potential for FY 3/25 OPM
improvement driven by used car GPM appreciation but has remained cautious in its
official forecast.

•

We note VT Hdgs has a 40% dividend payout ratio & is committed to improving its PBR
through increasing earnings & effectively communicating its growth potential toinvestors. On 9x PER FY 3/25 company estimates, we conclude it is strongly positioned& recommend investors book time with senior management to dig deeper: here.

70.5

Source: Bloomberg

BUSINESS OVERVIEWVT HOLDINGS CO sells automobiles,
replacement parts, & used cars, provides
vehicle maintenance & repair services &arranges automobile financing &insurance. It also has a housing &condominium construction business.
Next event
1Q FY 3/2025 results in Aug 2024
Storm Corporate: +44 (0) 121 288 3402
info@stormresearch.co.uk
Storm corporate profile page

VT Holdings is a research client of Storm
Research

Year end

3/2022

3/20233/20243/2025E

Sales (¥bn)

237.9

266.3

311.6

330.0

OP (¥bn)
NP (¥bn)

10.2
11.7

12.9
7.2

12.0
6.7

13.0
7.0

EPS (¥)DPS (¥)

101.0
22.0

61.9
23.5

56.9
24.0

57.9
24.0

Sales growth YoY (%)
OP growth YoY (%)

19.2
32.1

11.9
26.1

17.0
-6.6

5.9
8.3

NP growth YoY (%)
EPS growth YoY (%)

147.9
148.7

-38.5
-38.7

-6.7
-8.1

4.5
1.8

4.4
5.9

8.2
6.0

9.4
5.4

8.8
5.2

PER (x)EV/EBITDA (x)PBR (x)

1.0

0.9

0.9

0.8

ROE (%)

25.5

12.4

9.8

n/a

ROIC (%)
FCF yield (%)

5.7
15.5

6.3
n/a

4.9
n/a

n/a
n/a

Dividend yield (%)
Source: Bloomberg

4.9

4.6

4.9

4.7

Storm CORPORATE RESEARCH・ストームコーポレート

RESULTS VSFORECAST HISTORYCOMPANYOVERVIEWFounded in 1983 as Honda Verno Tokai in Aichi Prefecture before changing its name in 2003,
VT Hdgs’ core Auto Sales Related business contributes approx. 90% of total sales via car
dealerships & related services. It also operates a property development business, which allows
it to build its own dealerships.
The company started by signing a distribution agreement with Honda (7267) in 1983, &adopted an active M&A growth strategy. As of May 2024, it had 57 subsidiaries both
domestically & overseas, with 42.7% of total FY 3/24 sales derived from overseas markets.
It listed on the Mothers market in 2004, moved to the TSE 1st Section in 2015, & to the Prime
Market in 2022.

EARNINGSFY 3/24 sales & OP finished in line with the 2nd revised company forecast, driven by robust auto
manufacturer production & demand. OP declined -6.6%YoY due to FY 3/23 earnings being
flattered by ¥1.8bn of negative goodwill.
- Revisions: VT Hdgs originally forecast conservatively for FY 3/24 & at 1H results revised up its
sales & OP forecast to reflect better than expected auto manufacturer production.
Ahead of FY results, it revised up sales again due to ongoing strong production, but revised OP
back to its original forecast due to -¥1bn in unexpected impairment losses from unprofitable
BMW dealerships & supply chain issues at UK subsidiary Caterham Cars. As it uses IFRS
accounting, these losses impacted OP.
The company anticipates improvement at its unprofitable subsidiaries in FY 3/25 & has
forecast no further impairment losses.
- GPM: The FY 3/24 GPM declined -0.6ppt YoY to 15.9% due to a weak used car market
overseas necessitating discounts. The used car GPM declined -1.8ppt YoY to 14.2%, but VT
Hdgs has noted a market recovery since 1Q 3/25 & expects GPM improvement in FY 3/25.

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート- SG&A: FY 3/24 SG&A was ¥37.5bn +14%YoY. The largest component was personnel costs,
which grew +11.2%YoY to ¥21.4bn due to a +4-5% salary base rise & an increase in personnelof +118 YoY to 4,890.
Other major costs included depreciation at ¥3.6bn +13.2%YoY, which VT Hdgs expects toshrink in FY 3/25 as depreciation was partly written off as an impairment loss in FY 3/24. It also
spent >¥2bn on advertising, primarily flyers, newspaper ads, & publicity via participation in
motor shows. Its marketing methods typically do not change & the cost is likely to be similar in
FY 3/25.
- OPM: The FY 3/24 OPM declined -0.9ppt YoY to 3.9% due to ¥1.8bn in negative goodwill
flattering the FY 3/23 OPM, & VT Hdgs considers the 3.9% FY 3/24 OPM a normalised level.
Historically, the OPM had been as high as 7.6% in FY 3/14, but gradually declined to 2.5% in FY
3/20 as VT Hdgs expanded its overseas business through M&A, which included low margin
businesses. From FY 3/20, the OPM improved as acquired overseas business margins
increased.
The company targets an OPM of 4.5%, although it anticipates fluctuations as it continues
acquiring subsidiaries. OPM improvement is likely to accompany efforts to increase
profitability such as recommending additional maintenance services to customers & focusing
on thorough car inspections for customers still within their guarantee period (thus making
them more appreciative of services they do not pay for).
- Overseas: VT Hdgs also operates car dealerships overseas. In addition to the dealerships, it
owns businesses such as UK specialist lightweight sports car manufacturer Caterham Cars.
42.7% +0.2ppt YoY of FY 3/24 sales were from overseas, of which 84.8% were from Europe,
8.7% from Africa, & the remainder from Asia, Oceania, & the Americas.

Examples of Caterham models including the electric Caterham V. Source: Company, Caterham.

VT Hdgs has no targets for its domestic/overseas sales ratio. It notes that overseas M&A iseasier as owners are more willing to sell, but large acquisitions are simpler domestically.

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート

In FY 3/24, any positive FX impact was limited due to weak overseas used car OP, but thecompany believes ongoing yen weakness & a recovering overseas market is likely to lead togreater FX gains in FY 3/25.

¥/£
¥/€

FY 3/24 Results
181.8
156.8

FY 3/25 CoE
191
163

It does not view FX as a major risk as its auto importer & used car exporter businesses largely
offset each other’s FX impact.. In FY 3/24, it made an approx. ¥300m FX gain on assets but
forecasts no similar gain in FY 3/25. Its sensitivity for ¥1 depreciation is as below.
Automobile dealer(JPY millions)

Importer

Revenue

Operating profit(JPY millions)

Cost of sales

GBP

389

3.6

GBP

18

EUR

312

8.8

USD

0.9

Source: Company.

FY 3/25 OUTLOOKVT Hdgs has forecast record high FY 3/25 sales & OP but considers the forecast conservative
due to uncertainty regarding the inflationary impact on energy & raw material costs, &potential fluctuations in new & used car prices. It has included no additions from M&A,
although it maintains its M&A growth policy.
The company expects a large order backlog in the Auto Sales Related division to drive sales, inaddition to +10-20% sales growth in the Housing Related division due to strong demand.
In light of recovery in the overseas used car market, & a likely lack of impairment losses, VT
Hdgs anticipates potential OPM improvement in FY 3/25 but remains cautious in its forecast.
Sales & OP typically skew to the 4Q, which the company expects to recur in FY 3/25.
- Honda test fraud: Japanese auto manufacturers, including Honda, have admitted to
conducting safety tests that differ from government standards in the past 1. VT Hdgs notes thatthe cars in question are previous models, & no safety test fraud has been found on the models
VT Hdgs currently sells or plans to sell. It therefore anticipates limited impact on its new car
sales.

3 PILLARS OFGROWTH

1

1. M&A: VT Hdgs expands its business through M&A, a strategy it began as soon as it listed on
the Nagoya Stock Exchange in 1998. As of May 2024, it owned 57 subsidiaries. It typicallyfinances acquisitions with loans, avoiding equity financing. As it uses IFRS, rather thanamortising goodwill for acquisitions it conducts regular impairment tests & records
impairment losses where necessary.

QUARTZ, ‘Toyota, Honda and Mazda all cheated on their safety tests’, 3rd June 2024.

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート

M&A is particularly important for growth of the Auto Sales Related division as new car
dealership openings are limited by manufacturers. Domestic M&A is less frequent thanoverseas due to Japanese dealership owners being reluctant to sell.
The main reason for domestic companies agreeing to M&A is unprofitability, & in this sense VT
Hdgs benefits from a weaker economy. Another domestic factor is the dearth of successors totake over businesses. By contrast, overseas companies typically agree to M&A based on price.
Domestic acquisitions take approx. 3 months to turn profitable in Japan versus approx. 12
months overseas due to the requirement for cars in Japan to undergo inspections every two
years, which boosts high margin maintenance sales. Further, overseas PMI is challenging due
to language & cultural differences between the acquisition & the Japanese staff appointed to
PMI.
Recent major acquisitions include the BMW dealership Fuji Motoren in May 2023 & housingrelated business Kawasaki Housing in Aug 2022. It typically acquires 1-2 businesses per year
although it did not make any new acquisitions in FY 3/24 due to a lack of attractive
opportunities.
- VT Hdgs’ major subsidiaries as of March 2024:

Source: Company.

2. Stock business model: VT Hdgs aims to maintain a strong base of stock income to offset theshrinking domestic car market. It considers all non-new car sales as stock income, thus FY 3/24
stock sales were 45% of total sales -2.5ppt YoY & stock GP was 67.6% -2.7ppt YoY of total GP.
The largest component of stock GP (52% in FY 3/24) is Maintenance services, including biannual car inspections that are generally obligatory in Japan.

VT Hdgs (7593) / 26th June 2024~5~

Storm CORPORATE RESEARCH・ストームコーポレート

3. Base revenue cover ratio: VT Hdgs defines its base revenue cover ratio KPI as non-new car
GP divided by SG&A, where a ratio >100% means the business can be profitable without selling
new cars. This is an important metric given the backdrop of a shrinking domestic market &lowered auto production negatively impacting dealers during the semiconductor shortage.
The FY 3/24 cover ratio was 81.1% -4.6ppt YoY, negatively impacted by YoY GPM deteriorationin the overseas used car business. The company expects an improvement in FY 3/25, & reportsthat some of its subsidiaries have cover ratios of >100%.

AUTO SALESRELATED(JPY millions)

1-3Q 3/24 Results

YoY

3/24 Results

YoY- New cars

n/a

n/a

156,408

21.9%- Used Cars

n/a

n/a

65,272

6.9%- Maintenance

n/a

n/a

47,563

11.4%- Rent-a-Car

n/a

n/a

15,17623.3%

204,392

14.9%

284,419

16.4%- New cars

n/a

n/a

14,62222.8%- Used Cars

n/a

n/a

9,250

-5.0%

- Maintenance

n/a

n/a

16,107

13.1%- Rent-a-Car

n/a

n/a

5,093

19.9%

GP

n/a

n/a

45,072

12.3%

GPM

n/a

n/a

15.8%

-0.6%

OP

7,360

12.9%

8,858

2.7%

OPM

3.6%

-0.1%

3.1%

-0.4%

Sales

- Business overview: VT Hdgs’ new car business accounted for 52.1% of FY 3/24 cars sold both
domestically (29.9%) & overseas (22.2%). Major brands include Nissan (7201) & Honda, withother brands including Suzuki (7269) & foreign names such as BMW. It also imports cars suchas its UK Caterham brand sports cars, & parts for foreign brands.

Source: Company.

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート

Its used car business (47.9% of FY 3/24 cars sold) operates domestically (28.4%) & overseas(13%), & it also exports used Japanese cars (6.6%). Additionally, it operates a rent-a-car
business with the 5th largest fleet of cars in Japan (19,528 as of March 2024) & performs highmargin maintenance services such as regular car inspections.
- FY 3/24: Auto Sales Related sales & OP were broadly in line with the revised company forecast
for FY 3/24 but above the original forecast due to stronger than expected auto manufacturer
production.
FY 3/24 dealership numbers totalled 220 +13 YoY, generating new & used car unit sales of
92,844 +2%YoY, with new cars benefiting from a manufacturer production recovery, offsetting
the weaker overseas used car market.
Maintenance business growth was in response to promotion of car inspections & repairs,
whilst Rent-a-Car business growth was driven by the inbound tourism recovery.
- GPM: FY 3/24 Auto Sales Related GPM deterioration was largely due to a downturn inoverseas used car sales. VT Hdgs notes a market recovery from 1Q 3/25 & expects GPM
improvement.
Whilst the Maintenance business has the highest GPM, at 33.9% +0.5ppt YoY in FY 3/24,
maintenance sales typically grow in tandem with car sales, thus VT Hdgs does not expect its
sales mix to change significantly in future.

Examples of a VT Hdgs rent-a-car outlet & Honda dealership. Source: Company.

- FY 3/25 outlook: VT Hdgs’ end of FY order backlog is typically approx. 4,000 cars, but in FY
3/23 & FY 3/24 it was higher due to the shortage of parts such as semiconductors, delaying car
production.
The company expects the order backlog of approx. 7,000 cars in March 2024 to drive FY 3/25
sales, boosted by improved manufacturer production & shorter delivery times. It believes the
March 2025 order backlog will be closer to the typical 4,000.
The company forecasts FY 3/25 new & used car unit sales to grow +5.5%YoY to approx. 98,000with improved production at manufacturers. Although the company has forecast
conservatively, it anticipates an overseas used car GPM recovery driving divisional OPM
improvement in FY 3/25.
- Longer-term outlook: VT Hdgs believes M&A is key to growth of the Auto Sales Related
division. It does not expect significant long-term OPM improvement due to the sales mix likely
remaining largely the same, but expects ongoing OP growth with M&A.

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート- Market overview: Due to population decline, Japan’s new & used car markets shrank -24% &-21% respectively between FY 3/01 & FY 3/24. Conversely, the number of domestic cars owned
increased +19% over the same period, benefiting VT Hdgs’ maintenance business, although thenumber of cars owned grew just +0.5%YoY in FY 3/24 due to the average age of cars
increasing.
M&A is a key strength of VT Hdgs’ business model. Although the auto business is
disadvantaged by Japan’s shrinking auto market, poor market conditions lead to more car
dealerships turning unprofitable & becoming M&A targets, enabling expansion. The company
also believes it has no major competitors for M&A of car dealerships.
VT Hdgs’ share among Nissan dealerships is 5-6%, which it estimates gives it the #2 Nissanmarket share, below Nissan’s directly owned stores. It estimates it is #3 with an approx. 5%
share among Honda dealerships. It differentiates itself with profitability improvement
strategies such as encouraging customers to refer friends & family to its dealerships.
Dealership market share is dictated by market conditions & VT Hdgs does not expect to growits share significantly. Whilst the number of independent dealerships is declining, this is due toincreasing consolidation amongst new car dealerships.

HOUSING RELATED(JPY millions)

1-3Q 3/24 Results

YoY

3/24 Results

YoY

Sales

17,68514.8%

26,993

23.5%

OP

1,115

-62.4%

1,954-42.5%

OPM

6.3%-12.9%

7.2%

-8.3%

In the Housing Related division, VT Hdgs develops standalone houses & condominiums &carries out other construction work. Whilst competition is tough, the company notes thiscauses some competitors to leave the market, allowing VT Hdgs to command higher margins
versus its Auto Sales Related division.
The company differentiates itself via its appealing designs & strong brand power in Aichi & Gifu
prefectures, where 4 of its 6 main Housing subsidiaries operate. It develops all stores for theAuto Sales Related division & receives orders to build other companies’ car dealerships.
- FY 3/24: Housing sales & OP finished broadly in line with plan in FY 3/24, as VT Hdgs procured
desirable land & delivered 160 +38.5% condos & 333 +42.3% houses. Sales growth wasboosted by robust orders for dealership construction & a full FY contribution from 2 housing
subsidiaries acquired in 3Q 3/22. Although OP declined YoY, this was due to ¥1.8bn in negative
goodwill recorded in FY 3/23 for an acquisition.
- FY 3/25: VT Hdgs anticipates +10-20% Housing-related sales & OP growth in FY 3/25, withpotential upside from M&A. Whilst construction & personnel costs continue to rise in the
sector, it believes it is able to pass these costs onto customers. It also aims to enact workstylereforms to improve employee retention & satisfaction to raise efficiency.
Medium-term, the company anticipates strong demand & its brand power allowing it tosustain +10-20% annual Housing sales & OP growth. Its outlook for medium-term divisional
OPM improvement is cautious due to high construction costs & the strong likelihood of M&A.

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート

MANAGEMENT

Current CEO Kazuho Takahashi (71) founded the company in 1981. After working at a truck
dealership, he established a used car dealership in Aichi prefecture, initially borrowing carsfrom other dealerships to show to customers & procuring them if the customer chose to buy
as he had no inventory. Once the used car business became profitable, he expanded to new
cars.
Also on the Board are Head of the Business Strategy Division Masahide Ito (63), who joined thecompany in 1996 after his position as CEO of Brains, taking leadership of VT Hdgs subsidiaries
such as used car exporter TRUST, before assuming his current role; & Ichiro Yamauchi (64),
who joined the Accounting division after working at Fuji Electric (6504). Other Directors haveprevious experience in firms such as Deloitte & Touche.

SHAREHOLDER
RETURNS

VT Hdgs forecasts a FY 3/25 dividend of ¥24 +2.1%YoY, for a 41.5% -0.7ppt YoY payout ratio
against a 40% payout ratio target. It has never lowered its dividend2 YoY, despite occasionallymaking large acquisitions.
The company acquired 966,000 of its own shares for ¥516m in March 2024 but is currently notplanning further buybacks. It also provides annual benefits to shareholders with over 100
shares, such as a ¥30,000 coupon to be used when buying a car & a 20% off coupon for KeePer
Technical Laboratory (6036) car coatings.
Since the downward revision to its FY 3/24 OP forecast on 8 th May 2024, the stock price has
been weak. The company believes the primary obstacle to stock price appreciation has been
the market’s assumption that new car dealer businesses are unable to grow quickly.
It aims to improve its 0.8x P/B ratio by emphasising its M&A-based growth trajectory & otherbusinesses to investors, & by increasing earnings.
The net debt/equity ratio was 1.4x +0.16ppt YoY in FY 3/24 as the company typically acquires
new subsidiaries with debt whilst also shouldering the debt of new acquisitions. VT Hdgs aims
to lower the ratio in the long-term.
Mr Takahashi’s family owns approx. 20% of shares individually & through asset managementcompany S&I. Other major shareholders include insurance companies such as Mitsui
Sumitomo Insurance (6.6%) & Sompo Japan (3.4%), which are also providers of car insurance
products at VT Hdgs’ subsidiaries.

VT Hdgs established a Sustainability Committee in 2021 & is committed to rewarding
sustainable business at its subsidiaries, for example through its annual internal sustainability
awards.

ESG- Environmental: The company announced support for the TCFD recommendations in July 2022
& has disclosed an analysis of the impact on its auto business in a <2°C & a >4°C scenario.
Environmental initiatives include the collection & disposal of chlorofluorocarbons &wastewater management at the company’s maintenance facilities.
2

Excluding the impact of commemorative dividends.

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート

It measures its Scope 1-3 emissions & targets a -42% reduction of Scope 1 & 2 greenhouse gas
emissions by FY2030 for the <2°C scenario. In 2023, it was rated a B- by CDP for its
environmental disclosure & performance.
- Social: VT Hdgs has partnered with local municipalities, such as with the Electric VehicleDriven Carbon-Free Society & Natural Disaster Resilience Partnership Agreement. It alsoorganises activities such as food drives & internal disaster fundraising.
- Governance: As of June 2023, 3 of VT Hdgs’ directors were external, & 2 were female. The
company promotes a strong culture of compliance with a compliance consultation desk & awhistleblower framework.
VT Hdgs’ sustainability disclosure is available in English here.

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート

COMPANYINFORMATION

Company Timeline
March 1983
April 1983
May 1994
Sep 1998
March 1999
June 1999
March 2000
April 2000

June 2000
Oct 2000March 2002

March 2003
April 2003

Jan 2004
Sep 2004
Nov 2004
April 2005
July 2005
Dec 2005
July 2006
Aug 2006
Feb 2011
Oct 2011
April 2012

Aug 2014
Oct 2014
Dec 2014
May 2015
Aug 2015
Feb 2016
May 2016
July 2016
Oct 2016
Sep 2017
Nov 2017
March 2018
Aug 2019

VT Hdgs (7593) / 26th June 2024

HONDA VERNO TOKAI CO., LTD. founded at Marune, Kagiyamachi, Tokai, Aichi Prefecturewith capital of 40 million yen.
Signed a basic agreement for a Verno dealership with HONDA MOTOR CO., LTD. and opened
the Tokai store in Kagiyamachi, Tokai, Aichi Prefecture.
Relocated head office to Dadaboshi, Kagiyamachi, Tokai, Aichi Prefecture.
Listed on the Second Section of Nagoya Stock Exchange.
Acquired FORD LIFE CHUBU CO., LTD, (currently FLC CO., LTD) and HONDA MOTOR SALESMEINAN CO., LTD. (currently HONDA CARS TOKAI CO., LTD.)
Established ORIX RENT-A-CAR CHUBU CORPORATION (currently J-NET RENTAL & LEASE CO.,LTD.)
Established NEW STEEL HOMES JAPAN CORPORATION (currently ARCHISH GALLERY CO., LTD.)
Expanded Honda dealership territory into Gifu prefecture by taking over sales areas fromHONDA VERNO GIFU CO., LTD.
Established ORIX RENT-A-CAR OSAKA CORPORATION (currently J-NET RENTAL & LEASE CO.,LTD.)
Acquired CHUKYO HONDA CO., LTD. (currently HONDA CARS TOKAI CO., LTD.)
Listed on the Nasdaq Japan Market.
CHUKYO HONDA CO., LTD. merged with HONDA JIHAN MEINAN CO., LTD. and changed thecompany name to HONDA PRIMO TOKAI CO., LTD. (currently HONDA CARS TOKAI CO., LTD.)
ORIX RENT-A-CAR CHUBU CORP. merged with ORIX RENT-A-CAR OSAKA CORP. and changed
the company name to ORIX RENT-A-CAR MEIHAN CORP. (currently J-NET RENTAL & LEASE CO.,LTD.)
Acquired TRUST CO., LTD.
Auto Sales-related business transferred to the newly established HONDA VERNO TOKAI CO.,LTD.
Changed the trade name to VT HOLDINGS CO., LTD. and became a holding company.
Acquired C.E.S CO., LTD.
Established FACE ON CO., LTD. (currently PCI. CO. LTD.)
TRUST CO., LTD. listed on TSE Mothers market.
Acquired LCI. CO. LTD.
Established E-ESCO CO., LTD. (currently MIRAIZ CO., LTD.)
Acquired NAGANO NISSAN AUTO CO., LTD. and its three subsidiaries.
Acquired SHIZUOKA NISSAN AUTO CO., LTD. and its subsidiary.
Acquired MIKAWA NISSAN AUTO CO., LTD. and its two subsidiaries.
HONDA VERNO TOKAI CO., LTD. merged with HONDA PRIMO TOKAI CO., LTD. and changed
the trade name to HONDA CARS TOKAI CO., LTD.
Acquired WESTERN BREEZE TRADING 23 (PROPRIETARY) LIMITED (currently TRUST ABSOLUT
AUTO (PTY) LTD.)
Acquired SOJITZ ABSOLUT AUTO(PTY) LTD. (currently SKY ABSOLUT AUTO (PTY) LTD.)
Acquired COLT CAR RETAIL LIMITED (CCR MOTOR CO. LTD. currently GRIFFIN MILL GROUP
LIMITED)
Acquired NISSAN SATIO SAITAMA CO., LTD. and its subsidiary.
Acquired NISSAN SATIO NARA CO., LTD.
Acquired MG HOME CO., LTD. (currently AMG HOLDINGS CO., LTD.)
Acquired SCOTTS MOTORS ARTARMON PTY LTD.
Acquired GRIFFIN MILL GARAGES LIMITED. (currently GRIFFIN MILL GROUP LIMITED)Transferred listing from the JASDAQ (Standard) Market to the TSE First Section and from theSecond Section to the First Section of the Nagoya Stock Exchange.
Acquired MG SOGO SERVICE CO., LTD.
Established MOTOREN SHIZUOKA CO., LTD.
Acquired WESSEX GARAGES HOLDINGS LIMITED.
Relocated the head office to Nagoya, Aichi prefecture.
Acquired MASTER AUTOMOCION, S.L. and its 11 subsidiaries.
Established MASTER DEALER DE AUTOMOCION 2017, S.L.
Acquired MOGACAR DE AUTOMOCION, S.L.
Acquired QUIAUTO, S.A.
Acquired KOYO AUTO CO. LTD.
Established MOTOREN MIKAWA CO., LTD.

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Storm CORPORATE RESEARCH・ストームコーポレート

July 2020
Jan 2021
April 2021

June 2021
Nov 2021

April 2022

June 2022
Sep 2022
Oct 2022
May 2023

July 2023

Acquired TAKI HOUSE CO., LTD.
Acquired HONDA YONRIN HANBAI MARUJUNE CO., LTD. (currently HONDA CARS TOKAI CO.,LTD.)
MG HOME CO., LTD. changed its name to AMG HOLDINGS CO., LTD. and became a holding
company. The successor company changed its name to MG HOME CO., LTD. and took overthe Housing-related business.
Acquired CATERHAM CARS GROUP LIMITED and its two subsidiaries.
Established M-MOTORBIKES ESPANA, S. L.
HONDA YONRIN HANBAI MARUJUN CO., LTD. (currently HONDA CARS TOKAI CO., LTD.)
became a wholly owned subsidiary through a share purchase.
Acquired TAKAGAKI GUMI, INC.
Transferred listing from the First Section to the TSE Prime Market, and from the First Section
to the Premier Market of the Nagoya Stock Exchange.
HONDA CARS TOKAI CO., LTD. merged with HONDA YONRIN HANBAI MARUJUNE CO., LTD.
CCR MOTOR CO., LTD. took over the business of GRIFFIN MILL GARAGES LTD.
Established MOTOREN DONAN CO., LTD.
Acquired KAWASAKI HOUSING CO., LTD. and HOUMAINTE CO., LTD.
The real estate leasing business split off and was taken over from HONDA CARS TOKAI CO.,LTD. through an absorption-type split.
Established CATERHAM EVO LIMITED.
Acquired FUJI MOTOREN CO., LTD.

Company Contact Details
Sakae VT Building 4F, 3-10-32
Nishiki, Naka-ku, Nagoya-shi
Aichi-ken, 460-0003
Website: https://www.vt-holdings.co.jp/eng/index.html
TEL: +81 052-203-9500

Major Shareholder

Stake (%)

S&I
The Master Trust Bank of Japan
Mitsui Sumitomo Insurance
Custody Bank of Japan
Sompo Japan
Aioi Nissay Dowa Insurance Company
Tokio Marine & Nichido Fire Insurance
Kazuho Takahashi
Junko Takahashi
Tomoji Takahashi
Source: Company

VT Hdgs (7593) / 26th June 2024

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13.29
10.86
6.60
4.98
3.44
3.19
3.19
3.08
2.80
1.72

Storm CORPORATE RESEARCH・ストームコーポレート

MANAGEMENT

President & Representative Director
Year of Birth
Career History
March 1983

Kazuho Takahashi
1953
Founded VT Hdgs and became President and Representative Director(current position)
Appointed President and Representative Director of Honda Verno
Tokai (currently Honda Cars Tokai)
Appointed President and Representative Director of LCI (current
position)
Appointed President and Representative Director of Honda Cars
Tokai (current position)
Appointed President and Representative Director of PCI (current
position)
Appointed President and Representative Director of Motoren
Shizuoka
Appointed President and Representative Director of Motoren Mikawa

April 2003
April 2006
June 2015
May 2017

Aug 2019
Senior Managing Director, Head ofBusiness Strategy
Year of Birth
Career History
Oct 1996
Apr 1997
June 1998
June 1999

Masahide Ito
1960
Joined VT Hdgs
Appointed Manager of General Affairs
Appointed Director and Manager of General Affairs
Appointed Managing Director in charge of affiliated companies andManager of General Affairs
Appointed Managing Director and Head of Business Strategy
Appointed President and Representative Director of E-Esco (currently
Miraiz) (current position)
Appointed President and Representative Director of Trust
Appointed Senior Managing Director and Head of Business Strategy ofthe same
Appointed President and Representative Director of Archish Gallery(current position)
Appointed President and Representative Director of SCI
Appointed Senior Managing Director and Head of Business Strategy
and Lead of Compliance Promotion
Appointed Senior Managing Director and Head of Business Strategy(current position)
Appointed President and Representative Director of PCI
Appointed Chairman and Representative Director of J-Net Rental &Lease (current position)
Appointed President and Representative Director of Koyo Auto (current
position)

April 2003
July 2005
April 2007
June 2008
June 2011
Aug 2013
June 2014
Dec 2014
June 2015
June 2016
Aug 2019
Executive Director and General Manager

Ichiro Yamauchi

Year of Birth
Career History
Jan 1999
April 2003
June 2003
June 2006

1959
Appointed as Accounting Manager at VT Hdgs
Appointed General Manager
Appointed Director and General Manager
Appointed President and Representative Director of J-Net Rental &LeaseAppointed Director and General Manager
Appointed Managing Director and Head General Manager
Appointed Managing Director and General Manager
Appointed Managing Director and Head General Manager (current
position)

June 2007
June 2008
Oct 2014
July 2022

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート

Director

Naoki Hori

Year of Birth
Career History
July 1996
Oct 2000
April 2003
Aug 2004

1964
Joined VT Hdgs
Appointed General Manager of the Housing-related division
Appointed General Manager of new businesses
Appointed President and CEO of Honda Verno Tokai (currently
Honda Cars Tokai)
Appointed Director and General Manager of Administration at VT
Hdgs
Appointed Executive Vice President, Honda Cars Tokai
Appointed Director and Head of Compliance Promotion
Appointed President and Representative Director of Yamashina(current position)
Appointed Director at VT Hdgs (current position)
President and Representative Director of Yamashina

June 2006
Aug 2006
Oct 2006
June 2007
June 2014
Major other positions
Director
Year of Birth
Career History
Dec 1989
April 2014

Tsutomu Nakashima
1965
Joined Honda Verno Tokai (currently Honda Cars Tokai)
Joined VT Hdgs
Appointed President and Representative Director of Nissan Satio
Nara
Appointed President and Director of Honda Cars Tokai (current
position)
Appointed Director at VT Hdgs (current position)

June 2015
June 2021

External Director
Year of Birth
Career History
April 1992

Hisatake Yamada
1964
Registered as an attorney with the Nagoya Bar Association (currently
the Aichi Bar Association)
Joined Koyama Hitoshi Law Office
Founded and served as representative of Shobu Law OfficeAppointed Professor at Shizuoka University Law School
Appointed Auditor for the Japan Third Sector Management Society(current position)
Appointed Vice Chairman of the Aichi Bar Association
Founded and served as representative of Shobu Law Offices (current
position)
Appointed External Director at VT Hdgs (current position)
Appointed Representative Director of Legal AI (current position)
Appointed External Director of Maruhachi Securities (current position)
Representative of Shobu Law Offices

April 1996
April 2008
Sep 2009
April 2012
Oct 2013
June 2015
Sep 2017
June 2020
Major other positions
External Director
Year of Birth
Career History
April 1996

Momoko Murase
1966
Registered as a lawyer with the Nagoya Bar Association (currently the
Aichi Bar Association)
Joined Saito Tsutomu Law Office (currently Honmachi City Law Office)Transferred to Murase & Yazaki Law Office (currently Hinoki Law
Office) (current position)
Appointed Director of the Chubu Bar Association Federation
Appointed Vice President of the Aichi Bar Association
Appointed External Auditor of Sasatoku Printing (current position)
Appointed External Director of Komehyo Holdings

April 2004
April 2013
April 2015
Sep 2019
June 2020

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート

Appointed Director of the Japan Federation of Bar Associations
Appointed External Director [Audit and Supervisory Committee
Member] of Komehyo Holdings (current position)
Appointed External Director at VT Hdgs (current position)
Partner attorney at Hinoki Law Office

April 2021
June 2021

Major other positions

External Director
Year of Birth
Career History
Sep 1989

Miki Shinjo
1962

Appointed Audit Manager at Deloitte & Touche Accounting, Los Angeles
officeAppointed Director of Marketing and Finance, Administrative Division, at
Coca-Cola Japan
Appointed Director and Head Administrative Manager at DHL Japan
Appointed Part-time Auditor at DHL Japan
Appointed Executive Managing Director, Finance and Administration
Division
Appointed Executive Officer, General Manager of the Finance andAdministration Division at Sanofi K.K.
Appointed Vice President, Senior Executive Officer, Chief Financial
Officer at Warner Bros. Japan
Appointed External Director at VT Hdgs (current position)

June 1997
May 2003
Sep 2010

Jan 2016
June 2022

VT Hdgs (7593) / 26th June 2024

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Storm CORPORATE RESEARCH・ストームコーポレート

J GAAP Financial statements
Income statement
(¥bn)
Sales
COGS
Gross profit
Gross profit margin (%)
Operating expense
Total OPOP margin (%)
Non-Op Income (Loss)
Pretax Income
Tax
Effective tax rate (%)
Net income

Balance sheet(¥bn)
Cash & equivalents
Accounts & notes receivable
Inventories
Other short-term assets
Current assets
Property, plant & equipment (netof depreciation)Long term investments &receivables
Other long-term assets
Total non-current assets
Total assets
Payables & accruals
Short-term debt
Other short-term liabilities
Total current liabilities
Long term debt
Other long-term liabilities
Total non-current liabilities
Total liabilities
Share capital & APIC
Treasury stock
Retained earnings
Other equity
Equity before minority interest
Total equity
Total liabilities & equity

FY
3/22
237.9
198.0
39.9
16.8
30.3
10.2
4.3
-7.8
18.0
5.5
30.8
11.7

FY
3/23
266.3
222.4
43.9
16.5
33.6
12.9
4.8
0.2
12.6
3.3
26.2
7.2

FY
3/24
311.6
262.0
49.6
15.9
39.0
12.0
3.9
0.6
11.5
3.8
33.5
6.7

FY
3/22
11.9
17.0
37.5
7.2
73.7
68.3

FY
3/23
12.8
19.4
56.2
9.2
97.5
73.4

FY
3/24
13.5
27.9
72.3
9.6
123.4
89.2

25.9

38.3

7.4

20.1
114.3
188.0
30.8
35.4
22.1
88.2
35.7
7.2
42.9
131.1
7.3
0.9
43.4
1.5
51.3
56.9
188.0

20.7
132.3
229.8
38.7
49.3
21.6
109.6
36.6
10.9
47.5
157.1
7.4
0.9
56.1
1.8
64.5
72.7
229.8

52.9
149.5
272.9
60.4
49.2
23.5
133.1
22.1
35.6
57.8
190.9
9.3
0.7
60.8
3.5
72.9
82.0
272.9

VT Hdgs (7593) / 26th June 2024

Cash flow statement(¥bn)
Net income/pre-tax profit
Depreciation/amortization
Other non-cash items
Changes in working capital
Net cash from discontinued
operations
Cash from Operating Activities
Change in fixed & intangible assets
Net change in long-term investments
Net cash from acquisitions &divestitures
Other investing activities
Net cash from discontinued
operations
Cash from Investing Activities
Dividends paid
Cash from (repayment) debt
Cash from (repurchase) of equity
Other financing activities
Net cash from discontinued
operations
Cash from Financing Activities
FX impact
Net cash flow

FY
3/22
11.7
9.6
-3.9
-0.6
0.0

FY
3/23
7.2
10.7
0.1
-6.8
0.0

FY
3/24
6.7
12.4
0.6
-7.6
0.0

16.8
-7.1
0.1
-0.8

11.2
-10.9
0.5
1.0

12.1
-10.2
0.1
-0.1

2.1
0.0

-0.3
0.0

-0.1
0.0

-5.6
-2.4
-6.3
0.0
-0.1
0.0

-9.8
-2.6
2.1
0.0
0.0
0.0

-10.3
-2.8
-1.0
2.6
2.6
0.0

-8.7
0.2
2.7

-0.6
0.0
0.8

-1.4
0.5
0.8

Free cash flow
EBITDA

8.0
19.8

-2.3
23.5

-1.6
24.4

Key metrics
Profitability
Gross margin (%)
Operating margin (%)
Net margin (%)
ROIC (%)
Liquidity
Current ratio (x)Quick ratio (x)Leverage
Debt/Equity ratio
Net Debt/Equity ratio~ 16 ~

FY
3/22

FY
3/23

FY
3/24

16.8
4.3
4.9
5.6

16.5
4.8
2.7
6.3

15.9
3.9
2.1
4.9

0.8
0.3

0.9
0.3

0.9
0.3

138.4
103.8

133.1
100.5

97.8
70.5

Storm CORPORATE RESEARCH・ストームコーポレート

DISCLAIMER
This report has been commissioned by VT Holdings & prepared & issued by Storm Corporate in consideration of a fee payable by VT
Holdings. All information and data used in the publication of this report has been compiled from publicly available sources that are
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VT Hdgs (7593) / 26th June 2024

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