Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — H1 FY2016 Earnings Presentation
33 slides from Komehyo's earnings presentation, November 2015
Slide 1: Earnings Results Briefing for the First Six Months of FY Ending March 2016
Earnings Results Briefing for the First Six Months of the Fiscal Year Ending March 31, 2016 KOMEHYO Co., Ltd. Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges)
Slide 2: INDEX
INDEX 1.Overview of Financial Results for the First Six P.02 Months of the Fiscal Year Ending March 31, 2016 2. Medium-term Management Plan P.21 3. Reference Information (Company Profile, etc.) P.24 Note: This document is an English translation of a document prepared in Japanese. Statements in this
Slide 3: Overview of Income Statement
Overview of Income Statement Achieved revenue and profit growth both on a consolidated and non- consolidated basis Consolidated FY2014 1H FY2015 1H FY2016 1H YoY vs. plan (Millions of yen) (2013.4-9) (2014.4-9) (2015.4-9) Net sales 18,188 19,495 20,936 107.4% 101.6% Gross profit 5,723 5,924 6,149 10
Slide 4: Selling, General and Administrative Expenses
Selling, General and Administrative Expenses Consolidated: Although expenses increased due to store opening, lower selling expenses resulted in a slight increase in overall expenses FY2015 1H FY2016 1H Consolidated (Millions of yen) Change YoY (2014.4-9) (2015.4-9) Selling, General and Administrativ
Slide 5: Profit Margin Trend
Profit Margin Trend Operating margin increased by covering a decline in gross profit margin with a lower SG&A expense ratio Gross profit Gross profit margin SG&A expense Consolidated Operating margin margin SG&A expense Non-consolidated Operating margin Ratio (%) (%) Ratio (%) (%) Gross profit margi
Slide 6: Overview of Balance Sheet
Overview of Balance Sheet Products increased due mainly to store opening and higher prices of brand-name product Consolidated Non-consolidated Liabilities and Net Liabilities and Net Assets Assets Assets Assets (Millions of yen) (Millions of yen) Cash and deposits 2,801 Current 2,799 liabilities Cas
Slide 7: Statement of Cash Flows
Statement of Cash Flows Cash flows from operating activities were negative due mainly to the opening of 4 stores and increases in products Consolidated Non-consolidated (Millions of yen) (Millions of yen) FY2014 FY2015 1H FY2015 FY2016 1H FY2014 FY2015 1H FY2015 FY2016 1H 3,500 3,500 3,181 3,655 3,7
Slide 8: By Segment
By Segment Both the Brand Fashion segment and the Tire and Wheel segment posted strong results (Millions of yen) FY2014 １H FY2015 １H FY2016 １H YoY Net sales 16,609 17,967 19,137 106.5% Brand Operating income 1,220 1,001 1,167 116.6% Fashion Operating margin 7.4% 5.6% 6.1% + 0.5pt Net sales 1,527 1,4
Slide 9: External Environment (1) Economic Trends
External Environment (1) Economic Trends Stock prices fell globally in August 2015 due to growing concerns over the Chinese economy Net sales Department store net sales(nationwide) KOMEHYO net sales(non-consolidated) Nikkei Stock Average(monthly closing price) YoY (%) Stock price (yen) 160 Last-minu
Slide 10: External Environment (2) Inbound Tourism Consumption
External Environment (2) Inbound Tourism Consumption The number of foreign visitors to Japan increased steadily （10K people） 200 No. of foreign visitors to Cumulative number of visitors for FY2015 9months: Japan 14.48M (48.8% increase on a YtoY comparison) 180 160 Cumulative number of visitors for F
Slide 11: External Environment (3) Gold Price
External Environment (3) Gold Price Implemented measures to strengthen purchase in line with the price of gold Purchase price Trends of KOMEHYO jewelry/precious metal purchase price and gold price Gold (Millions of yen) ( Tanaka Kikinzoku and Mitsubishi Materials average prices) price(yen) 800 Stren
Slide 12: Initiative (1) Opening of New Stores
Initiative (1) Opening of New Stores Opened 4 stores in FY2016 1H; planning to open 3 stores in FY2016 2H and 1 store in FY2017 FY2016 1H store open FY2016 2H store open (plan) KOMEHYO KOMEHYO KOMEHYO Sakae Central Park Store Canal City Hakata Store Jiyugaoka Store April 29, 2015 (approx. October 1,
Slide 13: Store Map
Store Map Stores (to be) opened in FY2016 2H (October 2015–) Canal City Hakata Store on October 1 26 stores (as of September 2015） Jiyugaoka Store on November 27 Tenjin Store in March 2016 Chubu Nagoya Store Stores to be opened in FY2017 (Main Building, Kimono Umeda Store in February 2017 Building,
Slide 14: Initiative (2) Purchase from Individual Customers
Initiative (2) Purchase from Individual Customers Purchases from individual customers remained solid Amount of purchase FY2014 FY2015 FY2016 from YoY 1H 1H 1H individual (13.4-9) (14.4-9) (15.4-9) customers (Millions of yen) Purchasing KOMEHYO Purchasing Center 7,148 8,173 8,896 108.8% Center Osu Ho
Slide 15: Initiative (3) Monthly Sales
Initiative (3) Monthly Sales Monthly sales have decreased year-on-year since July 2015 (a sharp increase in sales last year) Net sales YoY (Millions of Non-consolidated net sales YoY yen) (%) Enhancement of sales Christmas & 4,500 150 Recovery in retail and including inventory Year-end adjustments s
Slide 16: Initiative (4) Inbound Tourism Consumption
Initiative (4) Inbound Tourism Consumption Sales of inbound tourism consumption remained solid (the degree differs according to country) Net sales FY2016 1H (Millions of Composition YoY Net sales composition by product (2015.4-9) yen) (FY2016 1H) Inbound tourism 2,945 - 126.6% Clothing Cameras/ cons
Slide 17: Initiative (5) Online Sales
Initiative (5) Online Sales Entered in cross-border e-commerce by opening an eBay (overseas mall) store in August 2015 No. of Net sales Net sales FY2016 1H products sold (Millions of yen) YoY YoY All online stores 2,948 107.0% 154.3% Percentage of online sales by KOMEHYO website channel Order/settle
Slide 18: Initiative (6) Member's Card
Initiative (6) Member’s Card The number of KOMEHYO member’s card holders is increasing steadily Card members No. YoY Total members (FY2016 1H) 556,000 129.9% Attributes of card members (as of FY2016 1H) Male Female Unknown 20s 30s 40s 50s 60s Other 2% 9% 14% 17% 39% 26% 59% 17% 22% Direct mail for c
Slide 19: Group Status
Group Status Sales composition (cumulative FY2016 1H results) Brand Fashion segment Tire and Wheel segment Buying and selling products including jewelry, Buying and selling tires and wheels as well as precious metals, watches, bags, and clothing provision of services Group net sales KOMEHYO (non- co
Slide 20: Subsidiary (1) Brand Fashion Segment KOMEHYO Auction
Subsidiary (1) Brand Fashion Segment Sales to secondhand dealers in Japan and abroad KOMEHYO Auction No. of Frequency Trade volume YoY member (FY2016 1H) companies Restaurant auction Monthly JPY8,800 121.7% (Jewelry, watches, 3 days million bags) 607 Apparel Monthly auction JPY160 million 171.4% 1 d
Slide 21: Subsidiary (2) Tire and Wheel Segment
Subsidiary (2) Tire and Wheel Segment Sale of tires, wheels, and parts Net sales Compositi FY2016 1H (Millions of YoY yen) on Tires/wheels 1,393 79.4% 117.3% Parts (incl. labor charge) 324 18.5% 144.3% Others 36 2.1% 57.5% Craft website homepage Segment total 1,754 100.0% 118.8% Enhancement of onlin
Slide 22: Medium-term Basic Targets (Consolidated)
Medium-term Basic Targets (Consolidated) Achieve sustainable growth focusing on the opening of new stores Consolidated FY2016 FY2017 FY2018 (15.4-16.3) (16.4-17.3) (17.4-18.3) Net sales JPY45.7B JPY47.5B JPY50.0B Operating income JPY3.17B JPY3.20B JPY3.25B Operating margin 6.9% 6.7% 6.5% Store openi
Slide 23: Net Sales Plan
Net Sales Plan Generate JPY50 billion and JPY45 billion on a consolidated and non-consolidated basis respectively in the fiscal year ending March 31, 2018 Consolidated 50,000 Non-consolidated Purchases by individual costomers Net sales (Millions of yen) 45,000 Net sales (Million of yen) 47,500 42,00
Slide 24: Profit Plan
Profit Plan Achieve sustainable profit growth by increasing net sales Operating income Ordinary income Net income attributable to owners of parent (Millions of yen) 3,170 3,170 3,200 3,200 3,250 3,250 3,129 3,162 2,999 2,988 Consolidated 2,200 2,040 2,043 2,100 1,834 FY2014 results FY2015 results FY
Slide 25: Company Profile
Company Profile Company name KOMEHYO Co., Ltd. Established May 1979 Head Office 3-25-31 Osu, Naka-ku, Nagoya Representative President, Representative Director: Takuji Ishihara Capital 1,803 million yen No. of employees Consolidated: 590, Non-consolidated: 479 Business Buying and selling used and new
Slide 26: Corporate History
Corporate History ●Opened KOMEHYO Shibuya Koendori Store, Abeno Store ●Opened USED MARKET Osu Store ●Joined Keidanren ●Established Auto Parts KOMEHYO KK (currently AUTO PARTS JAPAN) ●Established KOMEHYO HONG KONG LIMITED ●Acquired CRAFT Co., Ltd. 2015 ●Established Product Center 2014 ●Established KO
Slide 27: KOMEHYO Business Model
KOMEHYO Business Model Main functions of Product Center (1) Thorough confirmation of product authenticity/quality (2) Market price management (3) Maintenance (4)Product development speed/cost management (5) Stable/appropriate supply of products to stores Quality, market Sale Purchase/procurement Pro
Slide 28: Business results for the past decade
Business results for the past decade Achieved a V-shaped recovery with store opening, new organizational structure, and subsidiary establishment Consolidated net sales Opened 5 KOMEHYO stores,2 Craft stores Consolidated operating income (100 million yen) (100 million yen) Auto Parts KOMEHYO (current
Slide 29: Store Type (1)
Store Type (1) Stores focusing on sale and purchase of jewelry, precious metals, watches, and bags 26 Store (as of September 2015) Large-scale comprehensive reuse store Mid-scale Small-scale Purchasing Center Nagoya Store: Approx. 2,024 Opening stores in large major Opening stores in major cities Op
Slide 30: Store Type (2)
Store Type (2) Stores focusing on sales and purchase of ladies casual clothing 7 Store (as of September 2015) Main products (sales/purchase): Ladies casual clothing, bags, accessories Operating 7 stores in Aichi 29
Slide 31: Store Type (3)
Store Type (3) Stores focusing on sales and purchase of clothing in the low price range 4 stores (as of September 2015) Main products (sale/purchase): Clothing, bags, accessories Red tags are attached to products and prices are lowered every two weeks 30
Slide 32: Reuse Market
Reuse Market The BtoC reuse market is expanding BtoC secondhand retail market Market ratio Trends of annual sales(100 million yen) 4,780 (%) 18 Domestic retailreuse 4,329 market size(FY2013) 16 (100 million yen) Brand-name 14 products 2,106 12 3,071 10 Clothing/accessories 8 The market size is 1,785
Slide 33: Shareholder Return
Shareholder Return Dividend trends Stock price (yen) Dividend (yen) 35 Fiscal year-end dividend(yen) 3,500 Forecast Interim dividend(yen) 30 Fiscal year-end stock price(yen) 3,000 25 2,500 15 20 14 2,000 15 15 1,500 10 8 10 5 7 1,000 6 7 5 14 15 5 9 11 500 7 6 7 7 8 5 5 0 0 FY2006 FY2007 FY2008 FY20