Slide 1: Earnings Results Briefing for the First Quarter of FY Ending March 31, 2017
Earnings Results Briefing for the First Quarter of the Fiscal Year Ending March 31, 2017 August16 2016 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 document
Slide 2: Overview of Income Statement (Consolidated)
Overview of Income Statement Consolidated FY2016 1Q FY2017 1Q Change YoY (Millions of yen) Net sales 10,374 9,153 △1,220 88.2％ Gross profit 3,181 2,539 △642 79.8％ Gross profit margin 30.7% 27.7% △3.0pt － SG&A expenses 2,488 2,595 +106 104.3％ Operating income 692 △55 △748 － Ordinary income 695 △68 △7
Slide 3: Overview of Income Statement (Non-consolidated)
Overview of Income Statement Non-consolidated FY2016 1Q FY2017 1Q Change YoY (Millions of yen) Net sales 9,264 8,052 △1,211 86.9％ Gross profit 2,754 2,154 △599 78.2％ Gross profit margin 29.7% 26.8% △2.9pt － SG&A expenses 2,101 2,225 +123 105.9％ Operating income 653 △70 △723 － Ordinary income 668 △77
Slide 4: Operating income increase and decrease factor (Consolidated)
Operating income increase and decrease factor（ Consolidated ） Operating income 692 (Millions of yen) Sales amount decrease Advertising expenses +76 Personal expenses △２ △374 Rents +78 Gross profit S, G&A margin drop Expenses △267 increase 0 △55 △106 Operating income FY2016 1Q (△748) FY2017 1Q 3
Slide 5: By Segment
By Segment (Millions of yen) FY2016 1Q FY2017 1Q YoY Net sales 9,421 8,181 86.8％ Fashion Brand Operating income 686 △39 － Operating margin 7.3％ △0.5％ △7.8pt Net sales 930 948 102.0％ Tire and Wheel Operating income △1 △21 － Operating margin △0.1％ △2.3% △2.4pt Net sales 33 34 103.8％ Others Operating i
Slide 6: External Environment Economic Trend
External Environment Economic Trend Consumer spending 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) 130 Nikkei Stock Average(monthly closing price) 22,000 Brexit shock 120
Slide 7: Opening of New Stores
Opening of New Stores Opened one store in Q1; planning to open large-scale stores in February and May 2017 【FY2017 1Q store open】 【 FY2018 store open (planned)】 KOMEHYO KOMEHYO Purchasing Center Nagoya-eki Store Shinjyuku May 2017 Minamiguchi (1,320m2) May28,2016 (117m2) 【FY2017 4Q store open (plann
Slide 8: Purchase from Individual Customers
Purchase from Individual Customers Acquisition of new customers through LINE De Satei in the future Amount of purchase from individual FY2016 1Q FY2017 1Q YoY customers Purchasing Center 4,690 4,067 86.7％ Home delivery Purchasing 227 222 97.9％ Total (Millions of yen) 4,917 4,290 87.2％ 【 LINE De Sate
Slide 9: Promotion
Promotion Promoted initiatives to increase brand recognition, as well as sales and purchases focusing mainly on the Kanto area 【 Sponsoring an SNS linked TV Program 【TVCM「LINE De Satei」】 On air since June 2016 “#モデる [modeling]” 】 Promoting LINE De Satei with rap messages → Average valuations approac
Slide 10: Online Sales
Online Sales Increased sales from other companies’ websites by promoting cross-border EC and other approaches Net sales FY2017 1Q (Millions of yen) Composition YoY KOMEHYO website ※１ 360 27.2％ 85.3％ Back orders ※２ 781 59.0％ 96.2％ Other ※３ 182 13.8％ 115.8％ Total 1,325 100.0％ 95.1％ KOMEHYO apps ※1 KOM
Slide 11: Tire and Wheel
Tire and Wheel Sales for customized car parts (car height control) were strong FY2017 1Q Net sales Composition YoY (Millions of yen) Tires/wheels 749 79.0％ 99.6％ Parts 190 20.1％ 114.6％ Others 8 0.9％ 72.4％ Segment total 948 100.0％ 102.0％ 10
Slide 12: Revised H1 plan/FY2017 plan
Revised H1 plan/FY2017 plan Plans were revised downwards in anticipation of challenging conditions continuing Consolidated Revised H1 plan YoY change Revised FY2017 Plan YoY change (Millions of yen) Net sales 18,500 88.4％ 41,500 90.4％ Operating income △143 － 1,230 44.1％ Ordinary income △157 － 1,230
Slide 13: Future tasks ①
Future tasks ① Temporary revision of strategies in response to changes in the external environment Expansion/growth Increasing profitability Increasing purchases and sales of products Initiative 1. which are easy to relatively secure a gross margin Shift focus from net sales to gross Increasing purc
Slide 14: Future tasks ②
Future tasks ② Temporary revision of strategies in response to changes in the external environment Expansion/growth Increasing profitability Initiative 2. Promotions focusing on LINE De Satei Strengthen Enhancing visual product display at stores acquisitions of new customers Frequent updating of blo
Slide 15: Future tasks ③
Future tasks ③ Temporary revision of strategies in response to changes in the external environment Expansion/growth Increasing profitability Managing customer information and Initiative 3. enhancing relationships with customers Promote return through direct mailings and other approaches visits by ex
Slide 16: Future tasks ④
Future tasks ④ Temporary revision of strategies in response to changes in the external environment Expansion/growth Increasing profitability Initiative 4. Assigning experienced buyers to stores Increase Enhancing OJT to train buyers purchases from individual Frequently confirming market price with t