Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — H1 FY2023 Earnings Presentation
57 slides from Komehyo's earnings presentation, Nov 14, 2022
Slide 1: Earnings Results Briefing for the First Six Months of the Fiscal Year Ending March 31, 2023
Earnings Results Briefing for the First Six Months of the Fiscal Year Ending March 31, 2023 November 14, 2022 Komehyo Holdings Co., Ltd. Securities code: 2780 (Tokyo and Nagoya Stock Exchanges) IR・PR Department TEL +81-52-249-5366 Email ir@komehyo.co.jp
Slide 2: Contents
Contents １．Overview of Financial Results for First Six Months P.2 of the Fiscal Year Ending March 31, 2023 ２．Initiatives for First Six Months of the Fiscal Year P.18 Ending March 31, 2023 ３．Reference Information (Company Profile, etc.) P.32 1
Slide 3: Contents
Contents １．Overview of Financial Results for First Six Months of the Fiscal Year Ending March 31, 2023 ２．Initiatives for First Six Months of the Fiscal Year Ending March 31, 2023 ３．Reference Information (Company Profile, etc.) 2
Slide 4: FY 2022 2Q Financial Summary
FY 2022 2Q Financial Summary Brand Fashion Tire and Wheel Net sales Operating income Purchase from individual customers Net sales operating loss 37,314 1,733 21,604 1,882 6 Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen （YoY 128.9％） （YoY 166.3％） （YoY 141.2％） （YoY 113
Slide 5: Economic Trend
Economic Trend Demand for high-priced items remained strong, as at department stores. 30,000 Nikkei Stock Average(monthly closing price) Stock price （yen） Department store(fine arts/jewelry/precious metals)(10 millions of yen) 20,000 KOMEHYO Net sales（Million of yen） 6,000 5,000 4,000 3,000 2,000 Th
Slide 6: Overview of income statement
Overview of income statement Record-high sales and profits FY2023 FY2023 FY2023 (Millions of yen) YoY YoY YoY vs 1H plan※ 1Q 2Q 1H Net sales 18,753 132.4% 20,466 124.2% 39,220 128.0% 101.9% Gross profit 4,717 118.4% 5,092 120.8% 9,810 119.6% － Gross profit 25.2％ △2.9pt 24.9％ △0.7pt 25.0％ △1.8pt － ma
Slide 7: Operating income increase and decrease factor
Operating income increase and decrease factor Purchases from individuals remained strong and net sales increased. Operating income grew significantly thanks to expense control and other efforts. 2,298 △ 688 1,744 △ 976 Operating income 1,110 (Millions of yen) Increase in selling expenses such as adv
Slide 8: Changes in selling, general and administrative expenses
Changes in selling, general and administrative expenses SG&A ratios declined due to efficiency-oriented advertisements. SG&A expenses to sales ratio(%) 26.8 21.9 29.9 23.1 20.6 20.0 (Millions of yen) 2,973 General and administrative expenses +198 2,774 ・Increase in depreciation, etc. 2,502 Personnel
Slide 9: Non-operating income(loss) / Extraordinary income(loss)
Non-operating income(loss) / Extraordinary income(loss) Rent expenses on store 183 （construct in progress） Interest expenses 25 Impairment losses 52 Other 9 Loss due to temporary closure 4 Loss on retirement of fixed assets 3 Non-operating Extraordinary losses 60 losses 219 (Millions of yen) Non-ope
Slide 10: Balance sheet overview
Balance sheet overview (Millions of yen) FY2022 FY2023 1H Change Current assets 29,453 34,061 ＋4,608 Cash and deposits 9,080 9,706 ＋626 Inventories 15,308 18,813 ＋3,505 →Increase cash on hand in preparation for personal purchases Other current assets 5,065 5,541 ＋475 →Individual purchases are brisk,
Slide 11: Cash Flow trend
Cash Flow trend Operating cash flow decreased partly due to an increase in inventories in preparation for a busy season in the second half of the fiscal year. Cash and cash equivalents increased due to an increase in short-term borrowings, etc. Cash and cash 12,423 equivalents 11,894 11,441 (Million
Slide 12: Gross Merchandise Value
Gross Merchandise Value GMV,which indicates the scale of our business , is an indicator of the promotion of relay use. GMV groeth leads to business growth and improved profitability. Gross Merchandise Value 51,673 51,077 (100 millions of yen) 40,778 41,097 39,071 36,420 27,692 1H 2H 1H 2H 1H 2H 1H F
Slide 13: Breakdown of Net sales (Retail / Overseas)
Breakdown of Net sales (Retail / Overseas) Corporate sales had a higher percentage due to strong purchases and for keeping stock new and fresh. Retail was also bullish and sales rose 10.8% year on year. Overseas sales were steady partly due to the easing of lockdowns in Shanghai. Overseas 10.2% FY20
Slide 14: Overview by segment
Overview by segment In the Brand Fashion business, both sales and profit increased thanks to strong purchases from individuals and the strong results of auctions for companies. Sales and profit also increased in the Tire and Wheel business owing to the strong sales of custom products. FY2023 FY2023
Slide 15: Purchase from individual customers (Group total)
Purchase from individual customers (Group total) Purchases from individuals remained favorable, rising 39.3% year on year, with the opening of Komehyo’s purchasing centers and BRAND OFF's purchasing centers (franchise stores), the holding of Kaitori Go purchasing events, and an increase in the amoun
Slide 16: Trends in Net sales and Gross Profit Margin
Trends in Net sales and Gross Profit Margin Purchases from individuals were strong. The ratio of corporate sales with low gross margins increased. Gross profit margin(%) 26.1 25.6 25.6 26.3 25.0 24.2 25.2 25.0 Net Sales 20,466 21,276 20,466 (Millions of yen) 19,237 18,753 16,472 16,472 12,957 FY2021
Slide 17: Changes in corporate auction trade volume
Changes in corporate auction trade volume The corporate auction trade volume remained strong chiefly due to an increase in the number of registered members. Number of registered members 3,409 3,095 3,124 3,280 3,409 2,743 2,966 2,966 Trade volume 9,854 9,969 10,255 9,854 (Millions of yen) 8,775 8,77
Slide 18: E-commerce-induced sales rate(KOMEHYO)
E-commerce-induced sales rate(KOMEHYO) While the infection situation of the new corona is calming down, shopping habits via EC are firmly established Focus on own EC site (KOMEHYO ONLINE) with high advertising cost-effectiveness by controlling the number of listings on other companies' sites E-comme
Slide 19: Initiatives for First Six Months of the Fiscal Year Ending March 31, 2023
目次 １．Overview of Financial Results for First Six Months of the Fiscal Year Ending March 31, 2023 ２．Initiatives for First Six Months of the Fiscal Year Ending March 31, 2023 ３．Reference Information (Company Profile, etc.) 18
Slide 20: Stores: Group total 162 stores (As of September 2022)
Stores：Group total 162 stores（As of September 2022 ) The figure in parentheses ( ) represents the increase during the second quarter. Brand Fashion Tire and Wheel Flagship stores 5 ２ 1 Sales Stores 2 6 3（1） Stores annexed with sales facilities 12 6 2 2 10 3（－1） Purchasing Center 71 ( 4 ) 8 Franchise
Slide 21: Effect of opening the purchase center (KOMEHYO)
Effect of opening the purchase center (KOMEHYO) More than 30 purchase centers have been opened since the previous fiscal year, and 100 purchase centers will have been opened in the three years, in places where customers pass by daily. We are planning to increase purchase from individual customers by
Slide 22: Efforts to strengthen purchasing（KOMEHYO）
Efforts to strengthen purchasing（KOMEHYO） Five purchasing centers launched 36 purchase events held • At commercial facilities and department stores considered to be Miyazaki Yamagataya / Meitetsu Department Store/ reassuring, familiar and close to consumers since they are found in Keikyu Department
Slide 23: Efforts to strengthen purchasing（K-BRAND OFF）
Efforts to strengthen purchasing（K-BRAND OFF） A hundred franchised purchase centers will be set up in the three-year period starting in the previous fiscal year. We are aiming to introduce at least 20 new stores by the end of the current fiscal year. Items purchased at franchise purchase centers are
Slide 24: Product distribution (FY2023-1H KOMEHYO)
Product distribution (FY2023-1H KOMEHYO) Purchasing quality/market/distribution Sale KOMEHYO Purchase from Merchandise center individual customers 78％ 43％ Retail Stores/Home delivery Purchasing/Purchasing at Store events/Purchasing at visited sites WEB（company,Other company,live commerce） Suitable f
Slide 25: Continue strengthening OMO（FY2023-1H KOMEHYO）
Continue strengthening OMO（FY2023-1H KOMEHYO） Contact center A contact center was set up in August 2020 as a function Customer services on smartphones Live Commerce for the e-commerce. A total of 287 staff members across the country holds It responds to inquiries on goods, how to operate and Chinese
Slide 26: Technology indispensable to store operation：AI
Technology indispensable to store operation：AI The system has been introduced to all the KOMEHYO purchase centers, all of K-Brand Off's franchised purchase centers and some of the LINK SMILE and USED MARKET shops. It will be introduced to purchase events and to the global business. It is a technolog
Slide 27: Format of auctions among companies
Format of auctions among companies KOMEHYO Auction and JBA complement each other in terms of area, date and format of the event. Frequency of corporate auctions Jewels / watches / Online auction 2 times/ month bags Apparel Online auction Monthly clothing JBA Real auction Monthly Kanazawa JBA Tokyo O
Slide 28: The First Shop of Premier Sneaker Shop WORM in a Department Store Opens
The First Shop of Premier Sneaker Shop WORM in a Department Store Opens WORM KOBE, the first WORM shop in a retail facility, opened on August 30, 2022. WORM has now three shops in Japan. The new shop can offer products to new types of customers, such as wealthy people browsing in the department stor
Slide 29: Subsidiary SELBY Co., Ltd.
Subsidiary SELBY Co., Ltd. Company Profile Business features Company name SELBY Co., Ltd. Head Office 2F RT Building, 5-22-4 Ueno, Taito-ku, Tokyo Purchase and sale of used jewelry Representative Shinji Ishihara • Runs two stores that buy and sell jewelry in Okachimachi and Ginza. • Operates an e-co
Slide 30: Plans to open stores overseas (Thailand, China)
Plans to open stores overseas (Thailand, China) SAHA KOMEHYO（Thailand） KOMEHYO SHANGHAI（China） Will open two stores by December 2022 and run a total of four stores. 41. Will open a store by December 2022. Aims to run five stores by the fiscal year ending March 31, 2025. KOMEHYO Terminal21 rama3 stor
Slide 31: Tire and Wheel
Tire and Wheel Sales of used tires and wheels increased from a year ago due to strong online sales. The operating loss was reduced significantly. Craft 4×4 engineering service Auto Parts Japan ・The 50th anniversary renewal event was held • Introduced an automatic washing machine to • Introduced an a
Slide 32: Reference Information (Company Profile, etc.)
目次 １．Overview of Financial Results for First Six Months of the Fiscal Year Ending March 31, 2023 ２．Initiatives for First Six Months of the Fiscal Year Ending March 31, 2023 ３．Reference Information (Company Profile, etc.) 31
Slide 33: 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 Consolidated: 1,049 Non-co
Slide 34: Corporate History
Corporate History ●Acquired Eve Corporation Co.,Ltd. ●Established KOMEHYO SHANGHANI LIMITED ●Established Auto Parts KOMEHYO (currently AUTO PARTS JAPAN) ●Established KOMEHYO HONG KONG LIMITED ●Transition to a holding company structure ● Acquired CRAFT Co., Ltd. ●Opened the second ●Established KOMEHY
Slide 35: Mission
Mission Komehyo Holdings is necessary for a sustainable recycling society. It acts as a relay point in the connection of “people,” “things,” and “society.” We will strive to connect “good quality" and "value" to the future. We respect people for making products, thank people for providing products f
Slide 36: From reuse to relay use
From reuse to relay use We will inherit that "value". Maintenance, remake, editing, connection with people. "Relay youth" is not just a downcycle of the value of things, but an upcycle of increasing the value, even though it is reused. As values for a sustainable future society spread, we will contr
Slide 37: KOMEHYO HD Group materiality (important issue)
KOMEHYO HD Group materiality (important issue) Work on four tasks of purchase, sales, appraisal, and restoration to realize the circulation of value through environmentally and socially conscious recycling, in pursuit of both promotion and growth of reuse and value improvement of used goods. Purchas
Slide 38: A value chain where value circulates through relay use
A value chain where value circulates through relay use Developing the reuse market further Making reuse a common practice in society Contributing to the development of the reuse market by proposing quality Making it a common practice to sell goods which will no longer be used items, taking advantage
Slide 39: Corporate governance system
Corporate governance system The Group's management efficiency and business performance are aimed at respecting the interests of not only shareholders, but also employees, customers, business partners, creditors, local communities, and other people who have great influences and interests. We are work
Slide 40: Officer system Skills matrix
Officer system Name Takuji Ishihara Toshio Sawada Yuya Yamauchi Masaru Hirauchi Yoshiko Nakahara Kazutoshi Torita Momoko Murase Miyuki Minamiru Director Outside Director Outside Director President and Title Managing Director Director Outside Director Outside Director (Audit and Supervisory (Audit an
Slide 41: Business system diagram
Business system diagram purchase Sales General customers, etc. Stores Stores General customers, etc. Home delivery Purchasing WEB Purchasing at Auction Used goods business events Purchasing at visited sites Used goods business New and used goods business Auctions by other companies 40
Slide 42: Medium-term management target (until FY2025)
Medium-term management target (until FY2025) FY2023 *1 FY2024 *2 FY2025 *2*3 (Millions of yen) 1H Full year Full year Full year Net sales 38,500 82,500 85,000 100,000 Operating income 1,550 4,350 4,400 5,500 Operating profit margin 4.0％ 5.3％ 5.2% 5.5% Ordinary income 1,430 4,350 4,400 5,500 Net inco
Slide 43: Sales plan
Sales plan Will revise forecasts in May 2023. (Millions of yen) Revised results forecasts in 100,000 August 2022. 85,000 82,500 71,148 57,510 50,960 50,723 45,903 45,497 43,199 40,212 40,134 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 42
Slide 44: Operating Profit Plan
Operating Profit Plan 7.5 7.2 Operating Income 6.1 Margin (%) 5.2 5.3 5.2 5.5 3.6 3.7 2.1 Will revise forecasts in May 2023. 1.2 0.5 Revised results forecasts in August 2022. 5,500 4,350 4,400 Operating Income 3,714 (Millions of yen) 2,999 3,129 2,789 1,860 1,625 590 297 832 FY2014 FY2015 FY2016 FY2
Slide 45: Ordinary income/Net income Plan
Ordinary income/Net income Plan Net income attributable Will revise forecasts in May 2023. to owners of parent Ordinary 5,500 income (Millions of yen) 4,350 4,400 3,772 3,450 3,162 2,988 2,742 2,830 2,850 2,259 2,040 1,834 1,826 1,696 1,610 1,073 1,009 815 355 431△ 595 9 △ 234 FY2014 FY2015 FY2016 F
Slide 46: Shareholder return
Shareholder return The annual dividend forecast is revised upwards from 44 yen to 50 yen per share, in consideration of the projected income level and others for the fiscal year ending March 31, 2023. Aiming to increase dividends consistently in line with the status of profit and cash flow. 92.4 Pay
Slide 47: Medium-term management plan
Medium-term management plan: Continuous business expansion through investments in growth businesses and human resource development Brand Fashion BtoC BtoB Oversea １．Achieving growth with existing core businesses ２．Achieving growth with businesses that contribute to the distribution of used goods to
Slide 48: Growth in the brand reuse market image
Growth in the brand reuse market image Important investment items ③Businesses that contribute to distribution ・Human resource recruitment and development ・Stores (openings/reorganization) ・IT (reuse technologies) ②Businesses that contribute to market growth ・Marketing ・Sustainability Businesses base
Slide 49: Medium-term Management Plan : Brand・Fashion
Medium-term Management Plan : Brand・Fashion Gaining more influence in the reuse market by making maximum use of the Group's assets １．Achieving growth with existing core businesses ＝Domestic＝ ・Increasing the number of purchasing channels (continuing to open purchase centers and strengthening alliance
Slide 50: Medium-term Management Plan : Brand・Fashion
Medium-term Management Plan : Brand・Fashion Gaining more influence in the reuse market by making maximum use of the Group's assets ２．Achieving growth with businesses that contribute to the distribution of used goods to revitalize the market ・Auctioning more items through franchise development (openi
Slide 51: Medium-term Management Plan : Tire・Wheel
Medium-term Management Plan : Tire・Wheel Expanding the business by strengthening profitability and investing in growth drivers １．Strengthening profitability through collaboration among the three companies ・Strengthening and opening specialty stores developed according to customer preference ・Strengt
Slide 52: Store development in the Ginza area
Store development in the Ginza area Ginza is an important area for strengthening retail sales. Expand stores as a group and expand contact points with customers. February 15, 2022 KOMEHYO GINZA CLOSED KOMEHYO 銀座店(仮) ● Feb 18-Aug 28 KOMEHYO GINZA LIMITED CLOSED ●Tiffany KOMEHYO GINZA PLUS ●LOUIS VUIT
Slide 53: Human capital management（KOMEHYO）
Human capital management（KOMEHYO） In the business model of environmentally and socially conscious recycling, humans play a wide range of roles (knowledge, skills, expertise, speed, relationship with customers, etc.), making it important to take initiatives to develop and retain human resources. Sale
Slide 54: Human capital management（KOMEHYO）
Human capital management（KOMEHYO） Groupwide training of personnel for the next generation Education of assessors by a team dedicated to education KOMEHYO provide opportunities for groupwide training aimed at developing management personnel and executives for the next generation. KOMEHYO focuses its
Slide 55: Human resources retention rate
Human resources retention rate Employee turnover rate has been low, which means that the employee retention rate has been high. This enables to accumulate expertise, laying a foundation for stable growth. General regular workers(except part-time workers)(Ministry of Health,Laver and Welfare) Turnove
Slide 56: Sales shares by segment and by sales channel (FY2022)
Sales shares by segment and by sales channel (FY2022) By segment Brand/fashion business By sales channel by operating company Tire and Wheel Real estate leasing Other 6.1% 0.5% 10.1% K-BRAND OFF Retail 43.3% 14.8% Brand and fashion business Corporate Consolidated sales amount of sales Komehyo Sales
Slide 57: IR contact
IR contact IR・PR Department Phone：+81-52-249-5366 E-mail：ir@komehyo.co.jp Note: 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 opinions of KOMEHYO C