Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — FY2025 Earnings Presentation
76 slides from Komehyo's earnings presentation, May 14, 2025
Slide 1: Earnings Results Briefing for the Fiscal Year Ended March 31, 2025
Earnings Results Briefing for the Fiscal Year Ended March 31, 2025 May 14, 2025 Komehyo Holdings Co., Ltd. Securities code: 2780 (Tokyo and Nagoya Stock Exchanges) ©Komehyo Holdings Co .,Ltd. 1
Slide 2: Summary of financial results for the fiscal year ending March 31, 2025
Summary of financial results for the fiscal year ending March 31, 2025 Net sales and profit increased year over year, while gross profit declined amid softening market conditions ・The market environment for business-to-business transactions remains unstable. 1 ・Net sales reached a record high due to
Slide 3: Contents
Contents 1. Company introduction P.4 2. Earnings Results for the Fiscal Year Ended March 31, 2025 P.8 3. Segment overview for the Fiscal Year Ended March 31, 2025 P.20 4. Progress of the Medium-term management plan P.27 5. Outlook and Initiatives for the Fiscal Year Ending March 31, P.38 2026 P.48 6
Slide 4: 1. Company introduction
１. Company introduction ©Komehyo Holdings Co .,Ltd. 4
Slide 5: Vision Mission Value
From reuse to relay use We will inherit that "value". Vision Mission Value We develop a concept of We respect people for making We listen and empathize with environmentally and products, thank people for what others say. socially conscious providing products for use We value the importance of recycl
Slide 6: Company Highlights (Consolidated) (As of March 2025)
Company Highlights (Consolidated) (As of March 2025) A leading player in the reuse industry, which operates KOMEHYO, BRAND OFF, Rodeo Drive, and other brands in Japan and other c ountries Founding Net sales Individual purchase amount 1947 年 158,994 millions of yen （ Growth achieved in four consecuti
Slide 7: Business list
Business list We operate three businesses: Brand Fashion, Tire and Wheel, and real estate leasing. We support "Relay Use," the handing down of goods from person to person and their effective utilization, both in Japan and other countries. Consolidated sales for the fiscal year ending March 2025 158,
Slide 8: 2. Earnings Results for the Fiscal Year Ended March 31, 2025
２. Earnings Results for the Fiscal Year Ended March 31, 2025 ©Komehyo Holdings Co .,Ltd. 8
Slide 9: Highlights of cumulative financial results for the fiscal year ended March 31, 2025
Highlights of cumulative financial results for the fiscal year ended March 31, 2025 Consolidated financial results for the fiscal year ended March 2025 Individual purchase Consolidated Consolidated Profit attributable to Consolidated sales amount (consolidated) operating profit ordinary profit owner
Slide 10: FY 2025 Performance
FY 2025 Performance Net sales and gross profit reached record highs. Operating profit and subsequent profit levels decreased due to a decline in the gross profit margin and higher SG&A expenses (Millions of yen) FY2021 FY2022 FY2023 FY2024 FY2025 Changes YoY Plan ratio* Net sales 50,723 71,148 86,11
Slide 11: Trends in Consolidated Net Sales and Gross Profit Margin
Trends in Consolidated Net Sales and Gross Profit Margin In addition to the favorable trend in individual purchases, we strengthened corporate purchases to capture sales opportunitie s from domestic and overseas customers. In the fiscal year ended March 31, 2025, gross profit margins from both retai
Slide 12: Analysis of consolidated operating income
Analysis of consolidated operating income Purchases remained strong, which resulted in sufficient in -store inventories. Regarding net sales, both retail sales and corporate sales increased significantly. Profit decreased 17.1% year on year, reflecting higher SG&A expenses linked to growth investmen
Slide 13: Changes in selling, general and administrative expenses
Changes in selling, general and administrative expenses Selling, general and administrative expenses increased significantly due to the consolidation of 4 companies into Group companies, the opening of new stores, and the associated increases in the hiring and training of personnel Selling expenses
Slide 14: Non-operating income and expenses/extraordinary income and losses
Non-operating income and expenses/extraordinary income and losses Extraordinary profit: 476 million yen recorded as gain on negative goodwill arising from the incorporation into the Group (Millions of yen) Interest expenses 278 Loss on retirement of non-current Foreign exchange losses 40 assets 78 R
Slide 15: Balance sheet overview
Balance sheet overview Inventories and interest-bearing debt increased significantly, in part due to the conversion of RK Enterprise and three other companies into Group companies Inventories, which are the source of sales growth and are directly linked to growth, increased favorably. ・The Group's i
Slide 16: Inventory Turnover
Inventory Turnover BF business Since August 2024, the gross profit margin has declined because of prioritizing low -margin inventory for corporate sales and supplementing retail-oriented products with corporate purchases. The crossover ratio was maintained by increasing inventory turnover. Inventori
Slide 17: Consolidated cash flow
Consolidated cash flow 【Operating activities】 Cash outflow: Inventories increased due to the conversion of RK Enterprise and t ３other companies into Group companies and strong individual purchases 【Investing activities】 Significant cash outflow: Increased expenditure to purchase shares of subsidiari
Slide 18: Purchase from individual customers (Group total)
Purchase from individual customers (Group total) Factors including the continued opening of purchase centers and growth at existing stores produced a solid trend in the numbe r of customers and in the purchase amount per customer, resulting in a record purchase amount for the full year at 128.8% com
Slide 19: Breakdown of consolidated Net sales (Retail / Overseas/Domestic tax-free sales)
Breakdown of consolidated Net sales (Retail / Overseas/Domestic tax-free sales) 【Retail】 Strengthening of retailing has increased the retail ratio, maintaining an ideal composition ratio (Retail: Corporate ≒ 50:50) 【Overseas】 Overseas sales are strong due to store openings in Hong Kong and Taiwan 【D
Slide 20: 3. Segment overview for the Fiscal Year Ending March 31, 2025
３. Segment overview for the Fiscal Year Ending March 31, 2025 ©Komehyo Holdings Co .,Ltd. 20
Slide 21: Summary by segment for the fiscal year ending March 31, 2025
Summary by segment for the third quarter of the fiscal year ending March 31, 2025 * Brand Fashion business（BF） Tire and wheel business（TW） Individual purchase Net sales Operating profit Net Sales Operating profit amount 78,702 153,078 5,717 5,872 300 millions of yen millions of yen millions of yen m
Slide 22: Segment overview for the Fiscal Year Ending March 31, 2025
Segment overview for the Fiscal Year Ending March 31, 2025 In the Brand Fashion business, individual purchases and retail/corporate sales were strong. In the Tire and Wheel business, sales of winter and summer tires remained strong. （Millions of yen） FY2025 FY2025 FY2025 FY2025 YoY YoY YoY YoY FY202
Slide 23: Stores in total for the Group (as of March 2025)
Stores | 301 stores in total for the Group (as of March 2025) For the full year, the Group opened 65 new stores, mainly in purchase centers. Brand Fashion Tire and wheel Flagship store 6 3 1 1 Sales Stores 2（1） 6 2（-1） Purchase and sales store 20（3） 4（1） 4 2 11（1） 2 Purchasing 162 Center 8（2） 3 （36,
Slide 24: Purchasing and sales status by route
| Purchasing and sales status by route *1 BF business Domestic retail gold prices remain high in terms of the composition of products purchased by individuals. As a result, jewelr y and precious metals account for about 40%. The composition ratio of corporate purchases, which was strengthened to sei
Slide 25: Corporate auction GMV (volume) growth
Corporate auction GMV（volume）growth BF business Four corporate auctions were operated through the Group consolidation of companies The number of member companies and the number of listings have increased due to an increase in the need for sales between corporations due to market fluctuations. 22,957
Slide 26: Overview of tire and wheel business
| Overview of tire and wheel business TW business Sales of new winter and summer tires, as well as sales of our own manufactured wheels both domestically and overseas, were fa vorable. In addition to favorable sales from individuals, the sales ratio of winter tires increased more than expected due t
Slide 27: 4. Progress of the Medium-term management plan
４. Progress of the Medium-term management plan ©Komehyo Holdings Co .,Ltd. 27
Slide 28: Outlook of the Reuse Market
Outlook of the Reuse Market The domestic reuse market is expanding steadily, with an average annual growth rate expected to reach 4.2% from 2025 onwards. ▍Domestic reuse market size * 40,000 • If there is primary distribution, sources for （Billion yen） 31,227 32,500 the reuse market will continue to
Slide 29: Diversified Business Development and Growth Opportunities
Diversified Business Development and Growth Opportunities We have already built a foundation in Japan by facing multiple markets, including the market of purchases from individuals, auction market, and retail and wholesale market. If the CtoC market is also considered, business opportunities exist i
Slide 30: Concept for business growth (BF business)
Reposting the financial results presentation Concept for business growth（BF business） for the fiscal year ended March 2024 Based on market trends and competitive advantages, we will set key investment items, supporting management platforms, and tactical options. For the mainstay Brand Fashion busine
Slide 31: Achieving business growth Brand Fashion
Reposting the financial results presentation Basic Policies for the Medium -term Management Plan for the fiscal year ended March 2024 "Beyond the 80th year milestone" Strive to achieve business growth and higher social value under a policy based on the business environment and competitive advantages
Slide 32: Operating the Medium-term Management Plan Based on Competitive Advantages
Operating the Medium-term Management Plan Based on Competitive Advantages Since its founding, the Group has been consistently engaged in reuse and has established competitive advantages based on its human resources, channels, and market share. The Medium -term Management Plan will be based on the bu
Slide 33: Synergies of M&A and integration
Reposting the financial results presentation M&A Strategy (BF business) for the fiscal year ended March 2024 Consider M&A etc. in overseas markets with excellent growth potential and areas that will lead to higher customer value, aiming to strengthen the business portfolio in addition to achieving o
Slide 34: Quantitative targets of the medium-term management plan (FY2025 to FY2028)
Quantitative targets of the medium-term management plan（FY2025 to FY2028) For the fiscal year ending March 2026, the company aims to achieve business growth through increased profits compared to net income attributable to parent company shareholders excluding gains on Gain on bargain purchase in the
Slide 35: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan ▍Basic Policy １⃣ Achieving business growth FY2025 Indicators/priority measures Results Progress of key measures ・Amid intensifying competition to open new stores, we secured new store locations while steadily recruiting and training personnel • KOMEHYO Pur
Slide 36: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan ▍Basic Policy ２⃣ Deepening sustainable management FY2024 FY2025 Indicators/priority measures Progress of key measures Results Results Contribution to a GHG emissions (compared with • Switched five KOMEHYO sites to renewable energy at the beginning of the f
Slide 37: Advancing management with an awareness of capital cost
Advancing management with an awareness of capital cost Analysis and evaluation of current situation Fresh inventory is essential to accumulating profits in the reuse business. Recently, through store opening strategies, etc., individual purchases have been going well, and optimal inventory control w
Slide 38: 5. Outlook and Initiatives for the Fiscal Year Ending March 31, 2026
5. Outlook and Initiatives for the Fiscal Year Ending March 31, 2026 ©Komehyo Holdings Co .,Ltd. 38
Slide 39: Rearrangement of given matters that will affect this fiscal year's performance
Rearrangement of given matters that will affect this fiscal year's performance The brand reuse market continues to face an unstable market environment due to exchange rate and tariff policies, as well as the economic environment in various countries. In addition to strengthening the individual purch
Slide 40: Market price forecast for main products for the fiscal year ending March 2026
Market price forecast for main products for the fiscal year ending March 2026 Current forecasts for each product, which are the premises for this fiscal year's plan, are as follows. We expect that instability will continue due to external conditions such as foreign exchange rates and tariff policies
Slide 41: Consolidated and business segment plans for the fiscal year ending March 2026
Consolidated and business segment plans for the fiscal year ending March 2026 Plans for increased sales and profits in both the BF business and the TW business Consolidated earnings forecast for the FY 2026 Earnings forecast by segment for the FY 2026 （million of yen) FY2025 FY2026 Change （million o
Slide 42: FY2026 Forecast of Consolidated Earnings Results by Quarter
FY2026 Forecast of Consolidated Earnings Results by Quarter Sales are expected to remain strong due to the expansion of individual purchases, etc. Profits are expected to decrease in th e first half due to an increase in selling and general administrative expenses such as sales expenses. Sales and p
Slide 43: Analysis of consolidated operating income (forecast)
Analysis of consolidated operating income (forecast) Sales are expected to increase 25% year on year due to increased purchasing. The gross profit margin is expected to improve b y 0.9 points for the full year. Selling and administrative expenses increased 31% due to active investment in human resou
Slide 44: Dividend forecast
Dividend forecast The annual dividend forecast is set to be 106 yen, an increase of 2 yen from the previous fiscal year. We will continue to focus on maintaining stable dividends and increasing dividends based on increased revenue and profits. Medium - t er m Managem ent P lan （yen） 161 interim divi
Slide 45: Basic Policy on Capital Measures
Basic Policy on Capital Measures Aiming for sustainable improvement of corporate value, we will strive to increase ROE over the medium to long term, aiming for 15% or more. Based on a sound financial base, we will flexibly implement strategic investments and pursue profitability and capital efficien
Slide 46: Management Resource Distribution Policy
Management Resource Distribution Policy Priority is given to securing inventory and capital investment ahead of time to gain market share in growing markets, particularly branded reuse. Also, while maintaining a certain degree of financial discipline, we will actively invest in M&A and other noncont
Slide 47: Key Points for the Fiscal Year Ending March 2026
Key Points for the Fiscal Year Ending March 2026 Considering the external environment and the fact that the product and channel mix has changed due to M&A, expanding market share is essential for the profit growth of the entire Group. While continuing to make aggressive investments going forward, we
Slide 48: 6. Appendix
6. Appendix 48 ©Komehyo Holdings Co .,Ltd. 48
Slide 49: Appendix
Appendix 1. Company Profile P.50 2. Global expansion P.68 3. Initiatives of each brand P.71 in the fiscal year ending March 2026 ©Komehyo Holdings Co .,Ltd. 49
Slide 50: Corporate Profile
Corporate Profile Company name Komehyo Holdings Co., Ltd. Established May 1979 ※Transition to holding company system in October 2020 Head Office 3-25-31 Osu, Naka-ku, Nagoya Representative President, Representative Director: Takuji Ishihara Capital 1,803 million yen No. of employees Consolidated: 1,
Slide 51: Transition of the reuse business and our history
Corporate Profile Transition of the reuse business and our history Since founding in 1947 as Komehyo Shoten, a used kimono store, we have consistently engaged in the reuse business while simultaneously moving forward with alliances and M&A. As a result, we have become a holding company under which 2
Slide 52: Consolidated performance trends (FY2021-FY2025)
Corporate Profile Consolidated performance trends （FY2021‐FY2025） Individual purchase amount ※ Net sales Operating profit 158,994 （Millions of yen） （Millions of yen） （Millions of yen） 78,834 7,452 119,459 61,205 6,176 5,168 86,113 43,722 71,148 3,714 34,144 50,723 16,979 596 FY2021 FY2022 FY2023 FY2
Slide 53: Consolidated performance trends (FY2021-FY2025)
Corporate Profile Consolidated performance trends （FY2021‐FY2025） Profit margin Ordinary profit Profit attributable to owners of parent Gross profit margin 7,479 （Millions of yen） （Millions of yen） 5,025 Operating profit margin 4,777 6,046 5,406 27.3% 3,706 25.9% 26.2% 24.8% 22.2% 3,772 2,559 6.0% 6
Slide 54: Consolidated performance trends (FY2021-FY2025)
Corporate Profile Consolidated performance trends （FY2021‐FY2025） ROA・ROE Cash flow GMV Cash flows from operating activities Cash flows from investing activities ROA ROE Cash flows from financing activities GMV 19.2% （Millions of yen） （ Billions of yen ） 202.1 16.7% 15.6% 11,907 9,425 13.5% 150.8 11
Slide 55: Human Capital Data (As of the end of March 2025)
Corporate Profile Human Capital Data (As of the end of March 2025) In the relay use business model, the roles played by people are wide -ranging (knowledge, skills, expertise, speed, connections with customers, etc.), and promoting the development and retention of human resources leads to improvemen
Slide 56: Corporate governance system
Corporate Profile Corporate governance system To ensure that management respects the interests of not only shareholders but also employees, customers, business partners, creditors, local communities and others who have a significant impact on or interest in the Komehyo Group, the Komehyo Group is ta
Slide 57: Officer system and skill matrix
Corporate Profile Officer system We defined key areas where directors are expected to demonstrate their capabilities in a skills matrix, with the aim of continuously improving the audit function that is to fulfilled by the Company's directors. Leveraging their diverse backgroun ds, we strive to achi
Slide 58: Business Domains of Komehyo Holdings Group
Business Domains of Komehyo Holdings Group Brand Fashion Business (General): Aim to be No. 1 in sales volume. Primary Secondary distribution distribution Purchase Product evaluation/commercialization sale General customers Real store Real store General customers Home delivery Product center Product
Slide 59: Business Domains of Komehyo Holdings Group
Business Domains of Komehyo Holdings Group Brand Fashion Business (Specialized): Aim to be one-of-a-kind with core fans. Primary Secondary distribution distribution sale Purchase Product evaluation/commercialization sale Real store Product Real Store General General Home delivery purchase customer c
Slide 60: Business Domains of Komehyo Holdings Group
Business Domains of Komehyo Holdings Group Tire and Wheel Business Primary Secondary distribution distribution production sale Purchase sale General customers Planning and development General customers commercialization Product production Reuse business Domestic mass retailer Maker Overseas ©Komehyo
Slide 61: Store expansion for a fashion brand business
Corporate Profile Store expansion for a fashion brand business In the Brand Fashion business, we demonstrate our strength through the successful operation of retail stores on a large scale . In addition, we engage in purchases through multiple channels such as stores annexed with sales, purchase cen
Slide 62: Breakdown of domestic duty-free sales
Breakdown of domestic duty-free sales Due to the effect of the opening of KOMEHYO SHIBUYA, the proportion of customers from the United States increased. They are younger than the domestic customer base, with the volume zone being customers in their 30s to 40s. Composition ratio by country/region Per
Slide 63: Business/service introduction 1
Corporate Profile Business/service introduction １⃣ ｜ The three brands, which engage in the sale and purchase of mainly second -hand brand name items, excel in the convenience of thei r stores, the reliability of their appraisal and their name awareness. They seek to achieve sustained growth in the a
Slide 64: E-commerce-induced sales rate
Corporate Profile E-commerce-induced sales rate | BF business Due to an increase in the number of customers and the unit price per person, EC sales increased by 115.8% compared to the sam e period of the previous year in the 3 months of the four quarter. Due to an increase in the sales ratio of fore
Slide 65: Business/service introduction 2
Corporate Profile Business/service introduction ２⃣ ｜ We operate a B2B auction for reuse businesses. The inter -corporate transaction market price greatly influences individual purchase prices and retail prices. Auction commissions ※1 on transaction value (GMV) are revenue. KOMEHYO Japan Brand RK AUC
Slide 66: Business/service introduction 3
Corporate Profile Business/service introduction ３⃣ ｜ Brands specializing in particular products are constantly increasing the number of fans by tapping into core demand. Purchase and sale of premium Consignment and sale of antique Overview Purchase and sale of jewelry sneakers watches and jewelry St
Slide 67: Business/service introduction
Corporate Profile Business/service introduction ｜ In the Tire and Wheel business, we engage in the purchase and sale of tires and wheels, as well as the planning and development of wheels.The supply chain is jointly maintained by the three group companies. AUTO PARTS JAPAN Purchasing and sales of ne
Slide 68: Business Phases by Country (Part 1)
Global Expansion: Business Phases by Country (Part 1) BF business Taking into account the situation in each country around the world, we will consider the possibility of deepening businesses to provide further value and that of expanding businesses into a wide range of areas, taking a balanced appro
Slide 69: Business Phases by Country (Part 2)
Global Expansion: Business Phases by Country (Part 2) BF business Based on the three-staged business phases, we will facilitate business expansion through each stage. Global expansion will be made primarily through the deepening and expansion of businesses stage by stage. Business Phases Hong Singap
Slide 70: Global expansion: 26 stores in total for the Group
Corporate Profile Global expansion| 26stores in total for the Group (as of March 2025) We have expanded into 7 overseas locations with our three brands: KOMEHYO, BRAND OFF, and Rodeo Drive. United States Hong Kong Taiwan Shanghai Thailand Singapore Malaysia of America Brands KOMEHYO KOMEHYO KOMEHYO
Slide 71: Initiatives of each brand 1
Initiatives for the fiscal Initiatives of each brand １⃣ year ending March 2026 Continue to strengthen purchases mainly through new store openings, while bolstering retail through new store openings and e-commerce, in Japan and other countries. Strengthening procurement channels Opening of sales outl
Slide 72: Initiatives of each brand 2
Initiatives for the fiscal Initiatives of each brand ２⃣ year ending March 2026 BRAND OFF will strengthen domestic and overseas e -commerce sales by linking inventory with RECLO and MIKE MUSEUM. Aggressive new store openings will be continued overseas, mainly in Hong Kong and Taiwan. Strengthening fr
Slide 73: Initiatives of each brand 3
Initiatives for the fiscal Initiatives of each brand ３⃣ year ending March 2026 Leveraging the strong customer base in the Tokyo metropolitan area and the strength of watches, we will expand our market sha re by optimizing the value chain and expanding channels. We will strengthen our business and or
Slide 74: Initiatives of each brand 4
Initiatives for the fiscal Initiatives of each brand ４⃣ Auction/Brands aiming to be the Only One year ending March 2026 Leverage the strengths of each of the two auctions to expand the number of members and trading volume by capturing a wide range of needs Continue to refine the appeal of the brand
Slide 75: Initiatives of each brand 5: Tire and wheel business
Initiatives for the fiscal Initiatives of each brand 5⃣ Tire and wheel business year ending March 2026 Aim for record sales of 10 billion yen by leveraging the characteristics of the three companies. Product development and expansion Expand sales and strengthen used Product management and online of
Slide 76: Disclaimer / IR contact
Disclaimer 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 op inions of KOMEHYO Co., Ltd. are forward-looking statements subject to various risks and