Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — Q3 FY2020 Earnings Presentation
30 slides from Komehyo's earnings presentation, Feb 14, 2020
Slide 1: Earnings Results Briefing for the Third Quarter of the Fiscal Year Ending March 31, 2020
Earnings Results Briefing for the Third Quarter of the Fiscal Year Ending March 31, 2020 February 14,2020 KOMEHYO Co., Ltd. Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges) Corporate Planning Department IR strategy group Phone +81-52-249-5366
Slide 2: FY 2020 3Q Financial Summary
FY 2020 3Q Financial Summary 【Performance Highlights】Downward revision of FY 2020 earnings forecast due to decreases in operating income and quarterly net income FY2020 9months Revised FY2020 FY2020 9months Revised FY2020 Consolidated Non-Consolidated YoY Plan YoY YoY Plan YoY Net Sales 114.1％ 111.5
Slide 3: Economic Trend
Economic Trend Most recently, impact of the consumption tax hike Net sales Stock Price YoY (%) Department store(fine arts/jewelry/precious metals) （yen） KOMEHYO net sales(non-consolidated) Consumption 200 Nikkei Stock Average(monthly closing price) tax increased 24,000 150 19,000 100 100 50 FY2020 1
Slide 4: Overview of Income Statement (Consolidated)
Overview of Income Statement （ Consolidated ） FY2020 FY2020 FY2020 FY2020 (Millions of yen) YoY YoY YoY YoY 1Q 2Q 3Q 9months Net sales 12,439 110.4% 15,288 126.9％ 14,999 106.1％ 42,728 114.1％ Gross 3,421 106.1% 3,672 118.6％ 3,879 97.5％ 10,973 106.5％ profit Gross profit 27.5％ △1.1pt 24.0％ △1.7pt 25.9％
Slide 5: Overview of Income Statement (Non-Consolidated)
Overview of Income Statement （ Non-Consolidated ） FY2020 FY2020 FY2020 FY2020 (Millions of yen) YoY YoY YoY YoY 1Q 2Q 3Q 9months Net sales 11,105 111.8% 13,755 127.5％ 12,289 106.0％ 37,151 115.0％ Gross 2,928 107.1% 3,103 115.4％ 2,977 94.1％ 9,010 104.9％ profit Gross profit 26.4％ △1.1pt 22.6％ △2.3pt 24
Slide 6: Sales by sales channel: Corporate sales made progress
Sales by sales channel (Non-Consolidated) Corporate sales made progress Retail/Corporate sales(Millions of yen) Retail Corporate sales Others Net sales Corporate sales 37,151 Net sales YoY143.6％ 32,315 Composition ratio Composition ratio 43.4％ 34.8％ Retail 64.9％ YoY99.9％ 56.4％ FY2019-3Q FY2020-3Q 5
Slide 7: Gross Merchandise Value (Consolidated)
Gross Merchandise Value （ Consolidated ） Expansion expected thanks to increasing purchases from individuals and turning K-Brand OFF into a group company Gross Merchandise Value(Millions of yen) 1H 2H K-BRAND OFF 32,962 31,926 36,420 FY2019 FY2020(forcast) FY2021(forcast) GMV is calculated simply by
Slide 8: Operating income decrease factor (Consolidated)
Operating income decrease factor （ Consolidated ） Profit decrease due to increases in expenses, such as rents and personnel expenses Operating income Increase in administrative expenses primarily due to 3,000 rents for new store openings and fees for acquisition of (Million of yen) K-BRAND OFF △790
Slide 9: Overview of Balance Sheet
Overview of Balance Sheet (Consolidated) Surge in current liabilities mainly due to turning K-Brand OFF into a group company (Millions of yen) Consolidated Assets Liabilities and Non-consolidated Net Assets Assets 38,735 38,735 Assets Assets Liabilities and Liabilities and Liabilities and 33,122 Net
Slide 10: By Segment
By Segment FY2020 FY2020 FY2020 FY2020 (Millions of yen) YoY YoY YoY YoY 1Q 2Q 3Q 9months Net sales 11,701 112.8％ 14,443 129.0％ 13,635 112.3％ 39,780 118.0％ Fashion Brand Operating income 184 53.8％ 266 131.0％ 98 14.3％ 549 44.6％ Operating margin 1.6％ － 1.8％ － 0.7％ － 1.4％ － Net sales 716 81.5％ 824 98.5
Slide 11: Brand・Fashion purchase
Brand・Fashion purchase The amount of purchases from individual customers is on the rise due to various measures to promote purchases. Amount of purchase from FY2020 FY2020 FY2020 FY2020 YoY YoY YoY YoY individual 1Q 2Q 3Q 9months customers Purchasing 5,818 117.6% 6,213 135.9％ 6,357 111.9% 18,389 121
Slide 12: Brand・Fashion Events
Brand・Fashion Events Going to "Customer's usual location" to make reuse more accessible. Main Event Partners period ※Q3 and later 2019 SANYO department store 10.29～11.5 MITOKEISEI department store 10.24～11.5 KEIHAN department store 11.21~11.27 Moriguchi store MEITETSU・EMUZA 11.5～11.16 mozo WONDER CI
Slide 13: Brand・Fashion New stores
Brand・Fashion New stores Opening of five purchase stores 【Purchase center Shinkoiwa-minamiguchi ‘19.5】【Purchase center Gakugeidaigaku-nishiguchi ‘19.7】 【Purchase center Kokubunji- 【Purchase center 【Purchase center minamiguchi ‘19.9】 Kamata-nishiguchi ‘19.9】 Sankenjyaya-sakaedori ‘19.11】 12
Slide 14: Store Type (Non-Consolidated)
Store Type （ Non-Consolidated ） 32 stores Large-scale Nagoya Store，Meieki Store, 5 stores Ginza Store，Umeda Store, Shinjuku store (including Shinjuku Sale and purchase * ANNEX and Shinjuku WATCH store) Ladies casual clothing, Bags, small items, etc. Sales/Purchase Jewelry, precious metals, watches,b
Slide 15: EC (Non-Consolidated)
EC (Non-Consolidated) Increase in the number of products sold by strengthening the handling of clothing and others FY2018 FY2019 FY2020 Net sales No. of products (Millions of yen) 9months 9months 9months YoY sold YoY E-commerce-induced sales 5,518 6,192 6,010 97.1％ 104.7％ E-commerce-induced sales ra
Slide 16: Nagoya main store renewal
Nagoya main store renewal KOMEHYO FASHION NAGOYA opened (the camera and musical instrument sections relocated to the main store.) 【 Relocation of the camera/musical instrument 【KOMEHYO FASHION NAGOYA ‘19.11】 Section to the main store ‘19.10】 15
Slide 17: Shinjuku store relocation completed
Shinjuku store relocation completed A three-store system in the proximity of Shinjuku Station was completed, enhancing convenience for customers 【KOMEHYO Shinjyuku store FASHION Building ’20.4 Scheduled】 【Image of FASHION building】 (’ Scheduled to close in Feb 2020) 16
Slide 18: KOMEHYO Auction
KOMEHYO Auction Auction Trade volume for domestic corporations is expanding trend Trade volume YoY No. of member companies (Millions of yen) FY2020 9months 19,952 113.9％ 1,023 ※98 companies increased YoY 【 Transition of auction Trade volume for domestic corporations 】 (Billions of yen) 199 175 136 F
Slide 19: SAHA KOMEHYO COMPANY LIMITED
SAHA KOMEHYO COMPANY LIMITED First overseas opening under the name of “KOMEHYO” in Bangkok, Thailand, in Nov 2019 【KOMEHYO＠CENTRAL WORLD (Bangkok) 】 18
Slide 20: K-BRAND OFF (Acquired on December 3, 2019)
K-BRAND OFF (Acquired on December 3, 2019) Domestic business was profitable in the month of December - Injection of knowhow, governance, funds, etc. K-BRAND OFF BRAND OFF LIMITED 名流國際名品股份 (Japan) (HONG KONG) 有限公司(Taiwan) 6 directly managed stores, Retail store ７directly managed stores, 2 FC stores ３
Slide 21: China business
China business Beijing joint venture company was dissolved, but experience and resources are concentrated in Shanghai to strengthen the China business 【BEIJING HUAXIA KOMEHYO LIMITED】 Established in June 2017 [LuxStory] retail store opened in September 2018 Dissolved in December 2019 (Resolution) 【L
Slide 22: Tire and Wheel New Stores
Tire and Wheel New Stores Opened reuse specialty store “U-ICHIBAN” 【Omiya Baipasu store ‘19.4 【Toyohashi store ‘19.5 Convert from craft】 Convert from craft 】 【Okazaki store 【Yokkaichi store ‘19.5 ‘19.6 New store】 【Kagamigahara store Convert from craft 】 ‘19.8 New store】 21
Slide 23: Tire and Wheel Store Type
Tire and Wheel Store Type 【New Tire and Wheel】 【Reuse Tire and Wheel】 ７ Stores 10 Stores ４Stores※ １Store※ ※Located in a craft store 22
Slide 24: Group structure ('19.12)
Group structure (’19.12) KOMEHYO Brand・Fashion business Brand Reuse Business Tire and Wheel business KOMEHYO Four by AUTO KOMEHYO HONG Eve K-BRAND four Auction KONG Corporation Shellman OFF Craft Parts Engineering B2Bオークション事業 LIMITED Japan Services BtoB BtoB Apparel business, Antique watch, Brand Re
Slide 25: Revised FY2020 plan
Revised FY2020 plan Forecast downward revision of respective incomes Revised Non- Revised Consolidated (Millions of yen) FY2020 FY2019 YoY Consolidated FY2020 FY2019 YoY Plan (Millions of yen) Plan Net sales 56,800 50,960 111.5% Net sales 48,500 44,391 109.3% Operating Operating 300 1,860 16.1% 450
Slide 26: Net Sales Plan (Consolidated)
Net Sales Plan (Consolidated) Upward revision of the plan for the term ending March 2020 (Millions of yen) 56,800 56,400 50,960 45,497 FY2018 results FY2019 results FY2020 plan(Revised) FY2021 plan FY2022 plan ※ Target numbers in the medium-term management plan are revised in each term 25
Slide 27: Profit Plan (Consolidated)
Profit Plan (Consolidated) Downward revision of the plan for the fiscal year ending March Operating income Ordinary income Net income attributable to owners of parent (Millions of yen) 1,860 1,826 1,625 1,610 1,329 1,261 727 1,073 1,009 300 100 40 FY2018 results FY2019 results FY2020 plan(Revised) F
Slide 28: Shareholder return
Shareholder return Dividend changes Dividends (Yen) Dividend payout ratio (％) 40 Fiscal year-end dividend 100 Interim dividend (Schedule) 90 35 Payout ratio 80 30 16 16 70 25 60 20 50 15 40 30 10 34.7 20 5 10 16 16 0 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY20
Slide 29: Corporate Profile
Corporate 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 Consolidated:948 Non-Consolidated: 539 (As of December 2019) employees Buying and selling
Slide 30: Corporate History
Corporate History ●Opened Umeda Store, Shinjyuku Store ANNEX,Meieki Store ●Acquired Eve Corporation Co.,Ltd. ●Established Auto Parts KOMEHYO KK (currently AUTO PARTS JAPAN) ●Established KOMEHYO HONG KONG LIMITED ●Acquired CRAFT Co., Ltd. ●Established Product Center ●Established KOMEHYO Auction ●Open