Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — FY2023 Earnings Presentation
37 slides from Komehyo's earnings presentation, May 2023
Slide 1: Earnings Results Briefing for the Fiscal Year Ended March 31, 2023
Earnings Results Briefing for the Fiscal Year Ended March 31, 2023 May 2023 Komehyo Holdings Co., Ltd. Securities code: 2780 (Tokyo and Nagoya Stock Exchanges) IR・PR Department TEL:+81-52-249-5366
Slide 2: From reuse to relay use
From reuse to relay use We will inherit that "value". Maintenance, remake, editing, connection with people. "Relay youth" is not just a downcycle of the value of things, but an upcycle of increasing the value, even though it is reused. As values for a sustainable future society spread, we will contr
Slide 3: Mission, Vision, Value
Komehyo Holdings is necessary for a sustainable recycling society. It acts as a relay point in the connection of “people,” “things,” and “society.” We will strive to connect “good quality" and "value" to the future. MISSION We respect people for making products, thank people for providing products f
Slide 4: Competitive Advantages of the KOMEHYO Holdings Group
Competitive Advantages of the KOMEHYO Holdings Group Since its founding, the Group has consistently worked on reuse. Developing Business with Three Competitive Advantages Talent retention rate of 1.7million Brand reuse 90％ or more items handled annually No.1* In order to acquire a wealth of product
Slide 5: Contents
Contents １．Overview of Financial Results and Initiatives p.6 for the Fiscal Year Ended March 31, 2023 ２．Medium-term Management Plan p.33 5
Slide 6: Overview of Financial Results and Initiatives for FY Ended March 31, 2023
１．Overview of Financial Results and Initiatives for the Fiscal Year Ended March 31, 2023 ２．Medium-term Management Plan 6
Slide 7: FY 2023 Financial Summary
FY 2023 Financial Summary Brand・Fashion business Tire and Wheel business Net sales Operating income Purchase from individual customers Net sales Operating income 81,234 4,856 43,486 4,833 245 Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen （YoY 121.8％） （YoY 149.2％） （Y
Slide 8: Sales shares by segment and by sales channel (FY2023)
Sales shares by segment and by sales channel (FY2023) By segment Brand/fashion business By sales channel Real estate leasing Tire and Wheel 0.3% 5.6% Other 11.4% K-BRAND OFF Retail Consolidated sales 15.9% Brand and fashion business Komehyo Sales 40.9％小売 amount of sales 86,133 million yen 59,021 mil
Slide 9: Changes in average purchaser unit price by product
Changes in average purchaser unit price by product （KOMEHYO） Due to purchase price control in line with market fluctuations, watch sales per customer were low compared to the same month of the previous year. However, thanks to strong sales of jewelry and precious metals in 1Q and bags and clothing i
Slide 10: FY 2023 Performance
FY 2023 Performance Strong purchases from individuals secured sales resources, leading to growth in both retail and corporate sales. (Millions of yen) FY2021 FY2022 FY2023 Change YoY Net sales 50,723 71,148 86,113 14,965 121.0％ Gross profit 13,836 18,415 22,542 4,126 122.4％ Gross profit margin 27.3％
Slide 11: Details of expenses
Details of expenses SG＆A expenses are on an upward trend due to upfront investment in opening KOMEHYO GINZA stores specializing in purchases, strengthening hiring through store expansion, and advertising expenses centered on promoting purchases. SG&A expenses to sales ratio declined due to efficienc
Slide 12: Operating income increase and decrease factor
Operating income increase and decrease factor Strong purchases from individuals led to an increase in net sales and gross profit. As the increase in gross profit exceeded the increase in expenses, operating income rose sharply to 139% of the previous year’s level. 3,917 209 (Millions of yen) 5,168 △
Slide 13: Changes in ROA/ROE
Changes in ROA/ROE Debt increased due to strong purchases. ROE rose sharply as the increase in fresh inventory generated profits ROA ROE 16.7 （％） 13.7 13.2 11.7 11.1 12.9 12.8 12.5 9.7 6.1 6.3 9.8 3.3 5.8 5.2 1.2 0.0 2.0 △ 1.2 △ 3.2 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY20
Slide 14: Statement of Cash Flows
Statement of Cash Flows Cash flows from financing activities turned positive due to increased investment in securing inventory and opening new stores, etc. Cash and cash equivalents 12,283 (Millions of yen) 11,894 10,738 7,330 6,086 4,769 3,886 4,379 Cash flows from operating activities 2,113 1,715
Slide 15: Non-operating income(loss) / Extraordinary income(loss)
Non-operating income(loss) / Extraordinary income(loss) Impairment losses 102 Rent expenses on store 282 Loss on retirement （construct in progress） of fixed assets 12 Interest expenses 60 Loss due to temporary Other 22 closure 6 Non-operating Extraordinary (Millions of yen) losses 365 losses 122 Non
Slide 16: Balance sheet overview
Balance sheet overview (Millions of yen) FY2022 FY2023 Change Current assets 29,453 35,322 5,868 Cash and deposits 9,080 10,382 1,302 Inventories 15,308 18,705 3,397 →Increase cash on hand in preparation for personal purchases Other current 5,096 6,234 1,169 →Individual purchases are brisk, SELBY Co
Slide 17: Inventory Turnover (Brand・Fashion business)
Inventory Turnover（Brand・Fashion business） Inventory was properly supplied and prices were adequately controlled by utilizing multiple sales channels while taking into account market prices and foreign exchange rates. This led to an improvement in the ratio of gross profit to inventory investment (g
Slide 18: Overview by segment
Overview by segment The Brand Fashion business performed well in all areas: purchases from individuals, retail/corporate sales, and auctions for corporate clients. The Tire and Wheel business also performed well in both the new and used goods businesses, with both sales and profits increasing. (mill
Slide 19: Changes in gross merchandise value
Changes in gross merchandise value GMV, which indicates the scale of our business, is an indicator of the promotion of relay use. GMV growth leads to business growth and improved profitability (Millions of yen) 59,424 51,077 51,673 40,778 41,097 39,071 36,420 31,926 32,962 27,692 FY2019 1H FY2019 2H
Slide 20: Breakdown of consolidated Net sales
Breakdown of consolidated Net sales (Retail / Overseas/Domestic tax-free sales) 【Retail】 Corporate sales had a higher percentage due to strong purchases and for keeping stock new and fresh, whereas retail was also bullish, keeping its share at slightly below 50%. 【Overseas】 The overseas sales ratio
Slide 21: Breakdown of domestic duty-free sales
Breakdown of domestic duty-free sales 【 Composition ratio by country/region】 The top four countries are in Asia, accounting for about 70% 【Percentage of purchasers by age group】 Younger than the domestic customer base, generation Y is the volume zone Composition ratio by Percentage of purchasers cou
Slide 22: Quarterly Trends in Consolidated Net Sales and Gross Profit Margin
Quarterly Trends in Consolidated Net Sales and Gross Profit Margin 【 Net sales 】Both retail and corporate sales increased due to strong individual purchases. 【 Gross profit margin 】Gross profit margin increased 2.5 pt YoY due to an improved purchase ratio and a decrease in the sales composition rati
Slide 23: Purchase from individual customers (Group total)
Purchase from individual customers (Group total) In addition to the opening of KOMEHYO/BRAND OFF (FC) purchase centers and KOMEHYO GINZA, strong purchases at existing stores and events drove steady growth in the amount of purchases per customer, setting a new record for annual purchases per customer
Slide 24: Corporate auction volume
Corporate auction volume JBA (especially real auctions in Kanazawa) is performing well due to an increase in the number of member companies. The total trading volume for the full year was 116% compared to last year, reaching a record high. Number of registered members 3,659 3,280 3,409 3,573 3,659 2
Slide 25: Product distribution (FY2023)
Product distribution （FY2023) Purchasing quality/market/distribution Sale KOMEHYO Merchandise center Purchase from individual customers 78％ 41％ Retail Stores/Home delivery Purchasing/Purchasing at Store events/Purchasing at visited sites Suitable for retail WEB（company,Other company,live commerce） P
Slide 26: Efforts to strengthen purchasing (KOMEHYO)
Efforts to strengthen purchasing （KOMEHYO） achievement Plan New store opening Purchase event , existing store ＜branch store＞ ・Opened 28 stores specializing in purchases ＜Purchase event ＞ More than 30 purchase centers have been (directly managed). ・Held a total of 135 times in 33 prefectures opened s
Slide 27: Efforts to strengthen purchasing (BRAND OFF)
Efforts to strengthen purchasing （BRAND OFF） achievement Plan New store opening Purchase event , existing store Opened 14 stores specializing in purchases (FC). ＜Purchase event ＞ ＜branch store,In-house auction＞ ・Regular purchase events will be held in A hundred franchised purchase centers will be FY
Slide 28: Opening the purchase center (KOMEHYO)
Opening the purchase center (KOMEHYO) The amount of purchase per store remained strong. The store openings added 3.9 billion yen (1.5 billion yen during the fiscal year) to the annual purchase amount. Signboard effect from new store openings had a positive impact on existing stores. (100 million of
Slide 29: E-commerce-induced sales rate (KOMEHYO)
E-commerce-induced sales rate(KOMEHYO) In 4Q, due to the impact of the watch market, the composition ratio of watches in the EC-related sales decreased by 10.8 points compared to the same period of the previous year. Due to the increase in the sales ratio of foreign visitors to Japan, the EC-related
Slide 30: Usage status of members (KOMEHYO)
Usage status of members(KOMEHYO) The majority of members use "store purchase only" and "purchase only", but there are some who use it repeatedly. OMO strategy and store openings specializing in purchases have increased the composition ratio of “EC purchase only” and “purchase only” Use all EC only (
Slide 31: Overseas expansion
Overseas expansion Opened stores in 4 overseas bases. We purchase and sell locally, and expand the scale while establishing a culture of reuse. We will continue to actively invest in anticipation of market expansion. Shanghai Hong Kong Thailand Taiwan Singapore brand Purchase（toC） Services to Purcha
Slide 32: Tire and Wheel
Tire and Wheel Non-snow season sales increased due to increased overseas export sales and strengthened used product sales Craft Auto Parts Japan 4×4 engineering service • An automatic washing machine was introduced • Introduced an automatic washing machine to improve the ・Sales of winter tires grew
Slide 33: Medium-term Management Plan
１．Overview of Financial Results and Initiatives for the Fiscal Year Ended March 31, 2023 ２．Medium-term Management Plan 33
Slide 34: Medium-term management target (Until FY2026)
Medium-term management target(Until FY2026) FY2024 FY2025 FY2026 (million of yen) first half full year full year full year Net sales 48,000 100,000 120,000 140,000 Operating income 2,250 5,800 7,000 8,100 Operating margin 5.0% 5.8% 5.8% 5.8% Ordinary income 2,250 5,800 7,000 8,100 Net income attribu
Slide 35: Capital allocation policy
Capital allocation policy Growth phase in which securing market share is a priority as the reuse market expands. Generated profits will be used for growth investments (stock inventory, store openings, overseas expansion, etc.) ・Investment in inventory essential for securing sales ・Investment in huma
Slide 36: Shareholder return policy
Shareholder return policy While giving top priority to investment for growth, we aim to increase dividends stably with a dividend payout ratio of 20% as a target for shareholder returns. payout ratio(%) 20.8 17.7 15.5 16 yen dividend increase Year-end dividend(yen) 28yen dividend increase interim di
Slide 37: IR contact
IR contact IR・PR Department Phone：+81-52-249-5366 E-mail：ir@komehyo.co.jp Note: This document is an English translation of a document prepared in Japanese. Statements in this document that are not historical facts; statements concerning current plans, forecasts, strategies, and opinions of KOMEHYO C