Slide 1: Earnings Results Briefing for the Third Quarter of the Fiscal Year Ending March 31, 2017
Earnings Results Briefing for the Third Quarter of the Fiscal Year Ending March 31, 2017 February17 2017 KOMEHYO Co., Ltd. Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges) The IR strategy department TEL +81-52-249-5366 Note: This document is an English translation of a docume
Slide 2: Overview of Income Statement (Consolidated)
Overview of Income Statement （ Consolidated ） FY2017 FY2017 FY2017 FY2017 Consolidated 1Q YoY 2Q YoY 3Q YoY ９months YoY (Millions of yen) (16.4-6) (16.7-9) (16.10-12) (16.4-12) Net sales 9,153 88.2％ 9,815 92.9％ 11,054 85.1% 30,023 88.5% Gross profit 2,539 79.8％ 2,565 86.4％ 3,155 85.0% 8,260 83.8% Gr
Slide 3: Overview of Income Statement (Non-consolidated)
Overview of Income Statement （ Non-consolidated ） Non- FY2017 FY2017 FY2017 FY2017 consolidated 1Q YoY 2Q YoY 3Q YoY ９months YoY (Millions of yen) (16.4-6) (16.7-9) (16.10-12) (16.4-12) Net sales 8,052 86.9％ 8,835 92.5％ 9,079 83.2％ 25,967 87.3％ Gross profit 2,154 78.2％ 2,230 86.8％ 2,500 83.5％ 6,886
Slide 4: Operating income decrease factor (Consolidated)
Operating income decrease factor （ Consolidated ） Sales amount Operating decrease income (Millions of yen) 2,130 △1,132 Gross profit Margin drop General and Personal △467 administrative expenses Marketing cost expenses decrease decrease increase 3 81 △101 514 FY2016 Operating income FY2017 (△1,616)
Slide 5: Increasing profitability ①
Increasing profitability ① 3Q gross profit margin: improved approximately to the same level as the previous corresponding period Consolidated Non-consolidated （％） （％） 16.3 Gross profit margin 16.3 Gross profit margin 17.3 Gross profit margin 17.3 Gross profit margin 32 32 30.7 29.7 30 30 28.6 28.1 2
Slide 6: Increasing profitability ②
Increasing profitability ② Products: reduced drastically, mainly potentially problematic inventory such as slow-moving inventory Consolidated Non-consolidated (Millions of yen) 16.3 products 17.3 products (Millions of yen) 16.3 products 17.3 products 12,500 12,374 12,374 12,383 12,500 12,082 12,000
Slide 7: Increasing profitability ③
Increasing profitability ③ Reduced the overall SG&A expenses including advertising expenses and personnel expenses Consolidated Non-consolidated 16.3 SG&A expenses 16.3 SG&A expenses (Millions of yen) （％） (Millions of yen) （％） 17.3 SG&A expenses 17.3 SG&A expenses 2,728 108 108 YoY YoY 2,700 2,700 1
Slide 8: By Segment
By Segment 3Q operating income increased YoY in all segments FY2017 FY2017 FY2017 FY2017 (Millions of 1Q YoY 2Q YoY 3Q YoY ９months YoY yen) (16.4-6) (16.7-9) (16.10-12) (16.4-12) Net sales 8,181 86.8％ 8,947 92.1％ 9,209 83.3％ 26,338 87.2％ Fashion Brand Operating income △39 － 19 4.0% 402 51.9％ 381 19.
Slide 9: External Environment : Economic Trend
External Environment : Economic Trend Consumption trend was weak due to significant changes in the economic environment Net sales Stock Price YoY (%) Department store net sales(nationwide) KOMEHYO net sales(non-consolidated) (yen) Nikkei Stock Average(monthly closing price) 130 21,000 Weak yen, Chin
Slide 10: Purchase from Individual Customers
Purchase from Individual Customers Rolled out “Purchase Promotion Campaign” at all purchasing centers Amount of purchase FY2017 FY2017 FY2017 FY2017 from 1Q YoY 2Q YoY 3Q YoY ９months YoY individual (16.4-6) (16.7-9) (16.10-12) (16.4-12) customers Purchasing Center 4,067 86.7％ 3,903 92.8％ 3,967 83.0％
Slide 11: Online Sales
Online Sales Sales at other companies’ websites, such as cross-border EC sites, were strong FY2017 【XMAS SALE】 Net sales YoY ９months Held special sales at online stores (Millions of yen) (16.4-12) simultaneously at physical stores KOMEHYO website 1,168 82.5％ Back orders 2,737 96.3％ Other 638 115.9％
Slide 12: Subsidiary① Brand Fashion Segment
Subsidiary① Brand Fashion Segment Sales to secondhand dealers in Japan and abroad KOMEHYO Auction Trade volume No. of member Frequency YoY companies (FY2017 ９months) Jewelry, Monthly JPY11,600 watches, 87.4％ bags 3 days million 719 Monthly JPY230 Clothing 89.1% 1 day million KOMEHYO HONG KONG LIMITE
Slide 13: Subsidiary② Tire and Wheel Segment
Subsidiary② Tire and Wheel Segment Sale of tires, wheels, and vehicle parts 【Produce a wheel “AXEL Series” movie】 FY2017 Net sales YoY ９months (Millions of yen) (16.4-12) Tires/wheels 3,017 98.7％ Parts 521 98.1％ 【Dress-up work example】 Others 75 114.8％ Segment total 3,614 98.9％ 12
Slide 14: Revised FY2017 plan
Revised FY2017 plan Consolidated Revised FY2017 Plan FY2016 YoY change (Millions of yen) Net sales 39,900 45,903 86.9％ Operating income 600 2,789 21.5％ Ordinary income 590 2,742 21.5％ Net income attributable to owners of parent 150 1,696 8.8％ Non-consolidated Revised FY2017 Plan FY2016 YoY change (M
Slide 15: Opening, closing, and relocation of stores
Opening,closing,and relocation of stores ＜The point＞ ☆Aim to improve medium- and long-term profitability by closing unprofitable stores and relocating and extending functions to existing stores and new stores scheduled to open in February 2017 and thereafter ☆Plan to reorganize Nagoya Head Office Ma
Slide 16: Opening, closing, and relocation of stores
Opening,closing,and relocation of stores main stores to ’17.2~5 relocation ‘17.1～7 Planned store closings which functions are schedule, new store transferred opening schedule Mid-scale： Shibuya koendori store Shinjyuku store Bekkan Small-scale： (Tentative name) Sakae central park store Nagoya-eki st
Slide 17: Opening of New Stores
Opening of New Stores KOMEHYO Umeda Store KOMEHYO Nagoya-eki Store image image February 2017 (planned) May 2017 (planned) (approx. 1,318m2) (approx. 1,320m2) KOMEHYO Shinjyuku Store Bekkan May 2017(planned) (approx. 1,073m2) 16
Slide 18: New initiatives
New initiatives Medium- and long-term initiatives to drive growth Introduction of the Rakuten Super Promoting overseas business Point program strategies ・Special service allowing customers to earn ・Integrate Overseas Business Rakuten Super Points by both selling and purchasing items (scheduled to st