Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — Q1 FY2022 Earnings Presentation
41 slides from Komehyo's earnings presentation, Aug 13, 2021
Slide 1: Earnings Results Briefing for the First Quarter of FY Ending March 2022
Earnings Results Briefing for the First Quarter of the Fiscal Year Ending March 31, 2022 August 13, 2021 Komehyo Holdings Co., Ltd. Securities code: 2780 (Second Section, 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 the First Quarter of the Fiscal Year Ending March 31, 2022 ２．Initiatives for the First Quarter of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 2
Slide 3: Overview of Financial Results for the First Quarter
１．Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 ２．Initiatives for the First Quarter of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 3
Slide 4: FY 2022 1Q Financial Summary
FY 2022 1Q Financial Summary 【First quarter results】 ・Both net sales and profits grew year on year attributable to contributions made by sales to corporations in the brand and fashion business. ・Strong individual purchases due to store openings and purchase events, etc. ・Opened 1 store annexed with
Slide 5: Revision of results forecasts for the first half and the fiscal year
Revision of results forecasts for the first half and the fiscal year ending March 31, 2022 Strong individual purchases、E-commerce hubs such as OMOs, contact centers, and corporate auctions have been successful under COVID-19 Net income Operating Ordinary attributable Basic (Millions of yen) Net sale
Slide 6: Economic Trend: New coronavirus etc. had a big impact
Economic Trend：New coronavirus etc. had a big impact Net sales YoY Stock Price (%) Department store(fine arts/jewelry/precious metals) The COVID-19 （yen） 500 KOMEHYO Net sales 4th wave 30,000 450 Nikkei Stock Average(monthly closing price) 28,000 400 The COVID-19 26,000 350 1st wave 24,000 300 250 T
Slide 7: Overview of income statement
Overview of income statement (百万円) FY2020 1Q FY2021 1Q FY2022 1Q Change※ YoY※ Net sales 12,439 7,861 14,162 6,300 180.1% Gross profit 3,421 1,888 3,985 2,097 211.1% Gross profit margin 27.5％ 24.0％ 28.1％ +4.1pt － SG&A expenses 3,328 2,748 3,476 727 126.5% Operating income 92 △860 508 1,369 － Operatin
Slide 8: Operating income increase and decrease factor
Operating income increase and decrease factor Successful efforts under the under COVID-19, sales increased, the market price of corporate auctions, Gross profit margin increased due to rise, etc., and operating income increased significantly due to expense control, etc. Increase in general and admin
Slide 9: 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 35.0 24.5 (Millions of yen) General and administrative expenses +310 1,388 ・Increased land rent due to reduced 1,310 temporary store shutdown 1
Slide 10: Non-operating income(loss) / Extraordinary income(loss)
Non-operating income(loss) / Extraordinary income(loss) Foreign exchange gain 13 Commission income 1 (Millions of yen) Dividend income 1 Other 3 Grant income 10 Gain on sale of fixed assets 3 Non-operating loss 12 Extraordinary loss 11 Non-operating income 19 Extraordinary income 13 Loss due to temp
Slide 11: Balance sheet overview
Balance sheet overview (Millions of yen) FY2021 FY2022 1Q Change Current assets 27,286 26,328 △957 →Normalization of cash on hand as a Cash and deposits 10,538 7,084 △3,454 precaution against COVID-19 Products 12,649 15,085 +2,435 →Merchandise increased with improved Other current assets 4,097 4,158
Slide 12: Overview by segment
Overview by segment In the brand / fashion business, individual purchases are strong and the market price of corporate auctions is rising, and in the tire / wheel business, custom products are strong. (Millions of yen) FY2020 1Q FY2021 1Q FY2022 1Q Change YoY Net sales 11,701 7,137 13,277 6,140 186.
Slide 13: Purchase from individual customers (Group total)
Purchase from individual customers (Group total) The purchase price per customer has increased due to the rise in the market price of watches and brand bags. Number of stores 109 96 98 93 94 Purchase from individual customers (Group total) (Millions of yen) 6,754 7,574 5,599 6,312 2,535 FY2021 1Q FY
Slide 14: Changes in corporate auction trade volume
Changes in corporate auction trade volume Hold the online bidding and the live auction method, trade volume increased due to rising prices of watches and brand bags Number of registered 2,743 2,755 2,972 members 2,591 Trade volume 7,421 7,947 (Millions of yen) 6,786 7,151 JBA 3,518 KOMEHYO auction F
Slide 15: EC(KOMEHYO)
EC(KOMEHYO) With proposals for 1on1 customer service, EC replacement, and contact center operation The composition ratio of orders increased compared to the same period of the previous year 48.2 E-commerce-induced sales rate：EC Sales as a Percentage of Retail Sales 41.0 41.6 43.7 39.4 E-commerce 2,2
Slide 16: Initiatives for the First Quarter
１．Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 ２．Initiatives for the First Quarter of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 16
Slide 17: Stores: KOMEHYO stores
Stores：KOMEHYO 63 stores（‘21.6) The purchasing center opened 8 stores in the first quarter out of the 30 stores targeted for annual store openings. 〔Domestic〕 〔Overseas〕 Flagship stores 5 stores Thailand (Bangkok) Stores annexed with 2 stores sales facilities 11 stores Purchasing Center KOMEHYO@Cent
Slide 18: Stores: BRAND OFF stores
Stores：BRAND OFF 25 stores（‘21.6) Opened 3 purchasing centers in the first quarter and the Tsim Sha Tsui store in Hong Kong 〔Domestic〕 〔Overseas〕 Flagship stores 2 stores HONG KONG 8 stores Stores annexed with Kanazawa Main Store TAIWAN 3 stores Tsim Sha Tsui store (HK) sales facilities 2 stores Tha
Slide 19: Cross-border EC
Cross-border EC Focusing on cross-border e-commerce for customers in China under COVID-19 Opened "BRAND OFF Overseas Flagship Store" at T-mall Global in June T-mall Live 金沢本店 19
Slide 20: WORM (sneakers) and Shellman (Antique clock, etc.) Stores
WORM(sneakers)・Shellman(Antique clock, etc.)Stores Domestic 1 store Domestic 7 stores WORM TOKYO Ginza main store WORM OSAKA Ginza main store 銀座本店 ‘21.7 Opened 20
Slide 21: Assessment of authenticity and model numbers through AI
Assessment of authenticity and model numbers through AI Test introduction expanded to KOMEHYO Nagoya main store and 16 Purchase centers in the Kanto area - aim to introduce it to all stores this term 【Purpose of development】 Formation of reuse market which customers can use 【AI development coverage※
Slide 22: Craft／U-ICHIBAN Stores
Craft／U-ICHIBAN Stores Domestic 10 stores Nakagawa store 4 stores with "URBAN OFF CRAFT" 1 store with " EURO STYLE Craft " Nagoya dome WEST store Domestic 4 stores (Closed: Kagamigahara store, Inazawa store, Okazaki store) Omiya Bypass Store 22
Slide 23: Tire・Wheel Initiatives
Tire・Wheel Initiatives 【Craft】 【4×4 Engineering Services】 Success in capturing custom-segment demand for wheels All items such as wheels and suspensions are performing and other supplies. well, including overseas. 4WD / SUV specialty store "URBAN OFF CRAFT" is doing well Country suspension kit 23
Slide 24: Reference Information (Company Profile, etc.)
１．Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 ２．Initiatives for the First Quarter of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 24
Slide 25: 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: 953 Non-cons
Slide 26: 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 27: Passing on the value of products through recycling
We will pass on the value of products through environmentally and socially conscious recycling instead of just reusing.。 Maintenance, remaking, reorganizing and human relationships Environmentally and socially conscious recycling, while it means reusing products, aims to pass down the concept of upc
Slide 28: Corporate History
Corporate History ●Acquired Eve Corporation Co.,Ltd. ●Established Auto Parts KOMEHYO (currently AUTO PARTS JAPAN) ●Established KOMEHYO HONG KONG LIMITED ●Transition to a holding ● Acquired CRAFT Co., Ltd. company structure ●Established KOMEHYO Auction ●Opened the second store in Bangkok, ●Opened KOM
Slide 29: Business system diagram
Business system diagram purchase Sales Stores Stores General customers, etc. General customers, etc. Home delivery Purchasing WEB Purchasing at events Purchasing at visited sites New and used goods business Used goods business 29
Slide 30: Medium-term management target (until FY2024)
Medium-term management target (until FY2024) FY2022(Revised) FY2023 FY2024 (Millions of yen) 1H Full year Full year Full year Net sales 30,000 63,200 65,000 70,000 Operating income 1,020 2,190 2,100 2,800 Operating 3.4％ 3.5％ 3.2% 4.0% profit margin Ordinary income 1,000 2,110 2,000 2,700 Net income
Slide 31: Sales plan
Sales plan 70,000 57,510 65,000 (Millions of yen) 63,200 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 ※ Changes were made to business plans for the first half and the fiscal year announced at the beginning of the fiscal
Slide 32: Operating Profit Plan
Operating Profit Plan Operating Income Margin (%) 7.5 7.2 6.1 3.6 3.7 4.0 3.5 3.2 2,999 3,129 2.1 2,789 1.2 0.5 Operating Income (Millions of yen) 2,800 1,860 1,625 2,190 2,100 832 590 297 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 ※ Changes were made to business pl
Slide 33: Ordinary income/Net income Plan
Ordinary income/Net income Plan (Millions of yen) 3,162 Net income 2,988 attributable 2,742 to owners of 2,700 parent 2,040 2,110 2,000 1,834 1,826 1,800 1,696 1,610 1,470 Ordinary 1,300 1,073 1,009 income 815 355 431 9 △ 234 △ 595 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY202
Slide 34: Changes in ROA/ROE
Changes in ROA/ROE （％） ROA ROE 13.7 13.2 11.1 12.9 12.8 9.7 6.3 6.1 3.3 5.8 5.2 1.2 0.0 2.0 △ 1.2 △ 3.2 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 34
Slide 35: Changes in gross merchandise value
Changes in gross merchandise value (100 millions of yen) KOMEHYO auction sales are mainly membership fees, and volume is not included in sales. Total distribution volume (GMV) 748 is a number that takes into 648 666 592 account the volume of the 510 auction and measures its 192 influence in the reus
Slide 36: Medium-term Management Plan
Medium-term Management Plan Brand・Fashion business Tire・Wheel business １．Strengthening of the scheme of purchasing from individuals and retailing １．Stabilization and strengthening of profitability ２．Strengthening of the corporate business ２．Strengthening of new products. ３．Development of overseas bu
Slide 37: Medium-term Management Plan: Brand・Fashion
Medium-term Management Plan : Brand・Fashion １．toC - Strengthening of the scheme of purchasing from individuals and retailing ・Increase the number of purchasing channels (acceleration of new store openings and facilitation of FC and alliances). ・Raise the capability of existing stores and improving C
Slide 38: Medium-term Management Plan: Tire・Wheel
Medium-term Management Plan : Tire・Wheel １．Collaboration among the three companies – Stabilization and strengthening of profitability ・Strengthen specialty stores developed according to customer preference and sales of which are not affected by the weather. ・Strengthen the sale and purchase of used
Slide 39: Sustainability: Promote "relay use"
Sustainability: Promote "relay use" 【 Remade jewelry shop 】 【KOMEHYO Kobe-sannomiya store】 【KOMEHYO AOYAMA】 A shop opened for a limited time in Placement of antique furniture and use of Store annexed with a gallery of Mr. Mago environmentally conscious materials in Nagasaka, a sustainability-focused
Slide 40: Shareholder return: Annual dividend for this term is 24 yen (planned)
Shareholder return： Annual dividend for this term is 24 yen (planned) 92.4 Payout ratio(%) 36.2 30.6 34.7 24.8 29.3 19.4 23.0 17.9 16.6 15.5 15.0 Fiscal year-end dividend Interim dividend (planned) 15 15 15 16 Dividends (Yen) 14 8 15 12 10 7 8 8 5 7 16 16 14 15 15 15 12 8 9 11 8 7 5 7 FY2009FY2010FY
Slide 41: 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