Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — Q1 FY2025 Earnings Presentation
58 slides from Komehyo's earnings presentation, Aug 13, 2024
Slide 1: Earnings Results Briefing for the First Quarter of FY Ending March 2025
Earnings Results Briefing for the First Quarter of the Fiscal Year Ending March 31, 2025 August 13, 2024 Komehyo Holdings Co., Ltd. Securities code: 2780 (Tokyo and Nagoya Stock Exchanges) IR・PR Department TEL:+81-52-249-5366 ©Komehyo Holdings Co .,Ltd. 1
Slide 2: Contents
Contents 1. Company introduction P.3 2. Earnings Results for the First Quarter of the Fiscal Year P.12 Ending March 31, 2025 and Revised Second Quarter and Full-Year Earnings Forecasts and Dividends Forecasts 3. Segment overview for the First Quarter P.27 of the Fiscal Year Ending March 31, 2025 4.
Slide 3: 1. Company introduction
1. Company introduction ©Komehyo Holdings Co .,Ltd. 3
Slide 4: 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 5: Company Highlights (Consolidated)
Company Highlights (Consolidated) A leading player in the reuse industry, which operates KOMEHYO, BRAND OFF, and other brands in Japan and other countries Founding Net sales *1 Individual purchase amount * 1 1947 年 119,459 millions of yen （ Growth achieved in three consecutive terms ） 61,205 million
Slide 6: Business Domains: Brand Fashion Business (General)
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 purchase Product center
Slide 7: Business Domains: Brand Fashion Business (Specialized)
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 8: Business Domains: Tire and Wheel Business
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 9: Position of the Medium-term Management Plan
Medium-term management plan Position of the Medium-term Management Plan We aim to achieve sales of 250 billion yen by the 80th anniversary of the company's founding, which is the final year of the Medium-term Management Plan, with a view to becoming the world's No. 1 the world'sNo. 1 company company
Slide 10: Basic Policies for the Medium-term Management Plan
Medium-term management plan Basic Policies for the Medium-term Management Plan "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. 1 Achieving business grow th Ad va n c i n g 3 manage
Slide 11: Selected as a constituent of the JPX-Nikkei Mid- and Small-Cap Index
August 2024: Selected as a constituent of the JPX-Nikkei Mid- and Small-Cap Index Selected for the first time as a constituent of the JPX-Nikkei Mid- and Small-Cap Index for FY2024 (August 30, 2024 ~ August 28, 2025) calculated by JPX Research Institute, Inc. and Japan Keizai Shimbun, Inc. ▍What is
Slide 12: 2. Earnings Results for Q1 and Revised Forecasts
2. Earnings Results for the First Quarter of the Fiscal Year Ending March 31, 2025 and Revised Second Quarter and Full-Year Earnings Forecasts and Dividends Forecasts ©Komehyo Holdings Co .,Ltd. 12
Slide 13: Revision of results forecasts for the first half and fiscal year
Revision of results forecasts for the first half and the fiscal year ending March 31, 2024 Inventory secured in the first quarter is expected to contribute to net sales income in the second quarter and beyond. Net income Operating Ordinary attributable Basic earnings (Millions of yen) Net sales to o
Slide 14: Revision of Consolidated Earnings Forecast: Main Factors and Future Outlook
Revision of Consolidated Earnings Forecast: Main Factors and Future Outlook Due to the rapid fluctuations in the exchange rate, the market prices of various products were weak. Although the profit marg in will decline temporarily, the forecast for the second quarter will be increased from an increas
Slide 15: Dividend forecast revision
Dividend forecast revision Based on the dividend policy, the annual dividend forecast has been revised to 104 yen, an increase of 4 yen. We will continue to focus on stable dividends and increasing dividends based on increased sales and profits. New M edium - term M an ag emen t Plan （yen） interim d
Slide 16: Medium-term management plan Quantitative Targets (FY2025 to FY2028)
Medium-term management plan Quantitative Targets (FY2025 to FY2028) We will continue to actively invest in the medium -term management plan to achieve business growth that exceeds market growth* At this point, there is no change in the quantitative targets for the fiscal year ending March 2026 and b
Slide 17: Summary of Consolidated Financial Results for Q1
Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 2025 Fueled by abundant inventories due to strong individual purchases, retail sales were strong. Gross profit increased due to an increase in gross profit that exceeded the plan, which absorbed the incre
Slide 18: Performance
Performance Net sales and profits were at record highs in the first quarter (Millions of yen) ‘2023.3-1Q ‘2024.3-1Q ‘2025.3-1Q Changes YoY Plan ratio* Net sales 18,753 25,096 33,499 8,402 133.5% 23.2% Gross profit 4,717 6,592 8,579 1,987 130.1% - Gross profit margin 25.2% 26.3% 25.6% ▲0.7 - - SG&A e
Slide 19: Analysis of consolidated operating income
Analysis of consolidated operating income Purchases remained strong, which resulted in ample products on offer at stores. Regarding net sales, both retail sales and corporate sales increased significantly. Growth in net sales offset the decline in the gross profit margin and the increase in SG&A exp
Slide 20: Trends in Consolidated Net Sales and Gross Profit Margin
Trends in Consolidated Net Sales and Gross Profit Margin In addition to strong individual purchases, we will strengthen corporate purchases to seize sales opportunities from customer s in Japan and overseas. Although the gross profit margin declined year -on-year, the substantial product lineup at t
Slide 21: Breakdown of consolidated Net sales (Retail / Overseas / Tax-free)
Breakdown of consolidated Net sales (Retail / Overseas/Domestic tax -free sales) 【Retail】The retail ratio increased due to the opening of sales stores and the increase in customers, and the ideal composition ratio (retail: corporate = 50:50) was maintained. 【Overseas】 Overseas sales remained strong
Slide 22: Breakdown of domestic duty-free sales
Breakdown of domestic duty-free sales Just under 60% of the customers are from China (including Hong Kong), Taiwan, and Thailand, where KOMEHYO and BRAND OFF have stores. They are younger than the domestic customer base, with the volume zone being customers in their 30s to 40s. Composition ratio by
Slide 23: Purchase from individual customers (Group total)
Purchase from individual customers (Group total) Due to the continued opening of purchasing specialty stores and the growth of existing stores, the number of customers and the purchase price per customer remained strong, and the year -on-year increase was 133.3% Increase in purchases of gold and bul
Slide 24: Changes in selling, general and administrative expenses
Changes in selling, general and administrative expenses In order to secure the human resources necessary for opening new stores, labor costs increased due to the strengthening of recruitment and training. With the increase in sales, SG&A expenses were suppressed as planned, and the SG&A ratio decrea
Slide 25: Balance sheet overview
Balance sheet overview In addition to strong individual purchases, we strengthened corporate purchasing with the aim of expanding the scale of our business and strengthening our retail market to secure ample inventory. Significant increase in inventories, which are a source of revenue expansion and
Slide 26: Inventory Turnover
Inventory Turnover BF business Abundant inventory secured through individual purchases and corporate purchases is controlled while being aware of the reside nce period and unrealized gains.The gross profit margin declined due to an increase in corporate purchases, but the inventory turnover rate inc
Slide 27: 3. Segment overview for the First Quarter
3. Segment overview for the First Quarter of the Fiscal Year Ending March 31, 2025 ©Komehyo Holdings Co .,Ltd. 27
Slide 28: Summary of financial results by segment
Summary of financial results by segment for the First Quarter of the Fiscal Year Ending March 31 2025 Brand fashion business（BF） Tire and wheel business（TW） Individual purchase Net sales Operating income Net sales Operating loss amount 17,986 32,377 2,106 1,111 3 Millions of yen Millions of yen Mill
Slide 29: Overview by segment
Overview by segment In the brand and fashion business, individual purchases and retail and corporate sales are strong. In the Thailand Wheel business, the composition ratio of new Tire and Wheels in online sales increased (Millions of yen) ‘23.3-1Q ‘24.3-1Q ’25.3-1Q Change YoY Net sales 17,794 24,07
Slide 30: Stores: 249 stores in total for the Group
Stores | 249stores in total for the Group (as of June 2024) In the first quarter, the Group opened 16 stores, mainly specializing in purchasing. Brand Fashion Tire and wheel flagshipstore 6 3 1 Sales Stores 1 6 3 Stores annexed with sales facilities 19 ( 1 ) 3 2 10 2 Purchasing Center 136 ( 11,-1 )
Slide 31: 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%. Retail sales performed well due to an increase in the number of customers,
Slide 32: Status of retail sector
| Status of retail sector BF business In Japan, we are taking on the challenge of new formats such as store size, store locations, and items handled. Overseas, we opened our fifth store in Thailand and our first dealership in Singapore. Selling locally purchased products to strengthen retail. ▍Domes
Slide 33: E-commerce-induced sales rate
| E-commerce-induced sales rate BF business Due to the increase in the number of customers and the unit price per person, it increased by 116.2% compared to the same per iod of the previous year. Due to an increase in the sales ratio of customers visiting Japan at sales outlets, the EC involvement r
Slide 34: Improving Profitability starting with Franchised Purchase Centers
Improving Profitability starting BF business with Franchised Purchase Centers Increase purchase volume by opening more franchised purchase centers and strengthen the flow of items to be sold on the compa ny- operated Japan Brand Auction (JBA). Increase JBA's GMV (trading volume) and improve profitab
Slide 35: RECLO Inc. joins the group: Synergies of M&A and integration
RECLO Inc. joins the group BF business On April 3, 2024, K-Brand Off Co., Ltd., our consolidated subsidiary, announced its acquisition of all shares in RECLO Inc., which operates RECLO, an e-commerce site for reselling products of highly renowned brands. ▍Approach to alliances Acquisition of RECLO C
Slide 36: Corporate auction GMV growth
| Corporate auction GMV（volume）growth BF business Due to the increase in the number of member companies, JBA's Kanazawa venue real auction is particularly strong. GMV volume （Million of yen） 14,755 13,785 12,780 11,851 11,950 10,255 10,346 10,334 9,854 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Number of 3,280 3,40
Slide 37: Overview of tire and wheel business
| Overview of tire and wheel business TW business Strong sales of new summer Tire, private purchase and sale of used products, and domestic and overseas sales of in -house planned wheels Gross profit margin declined due to an increase in online sales of new Tire, which has a low profit margin. Craft
Slide 38: 4. Appendix
4. Appendix ©Komehyo Holdings Co .,Ltd. 38
Slide 39: Appendix contents
Appendix 1. Company Profile P.40 2. Quantitative Targets of the P.51 Medium-Term Management Plan and Outlook for the Initial Plan 3. Initiatives of each brand P.54 ©Komehyo Holdings Co .,Ltd. 39
Slide 40: 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 41: Corporate Profile: Business list
Corporate Profile 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 endi
Slide 42: History
RECLO Inc. joins the group History Establishment of KOMEHYO BRAND OFF ASIA LIMITED, AN IMPORTANT BASE Corporate Profile IN ASIA. Established KOMEHYO MALAYSIA SDN.BHD.KOMEHYO USA inc. 2024 2023 2022 Opened KOMEHYO GINZA and Transition to a holding company structure KOMEHYO SHIBUYA 2020 75th anniversa
Slide 43: Human Capital Data
Corporate Profile Human Capital Data In the relay use business model, the roles played by people are wide -ranging (knowledge, skills, expertise, speed, connections w ith customers, etc.), and promoting the development and retention of human resources leads to improvements in business performanc e a
Slide 44: Business/service introduction: KOMEHYO
Corporate Profile Business/service introduction | The main brand of Komehyo Holdings, which mainly sells and buys used brand products. Aiming to improve market standards by creating "curiosity" among customers and society toward a seamless purchasing experience between online and offline ▍Store deve
Slide 45: Trends in purchase price per customer by product
Trends in purchase price per customer by product | The corporate trading price of each product was flat or slightly higher. By handling multiple products in a well-balanced manner, we have been able to diversify the risk against market fluctuations, and the unit price per individual customer has rem
Slide 46: Business/service introduction: BRAND OFF
Corporate Profile Business/service introduction || Mainly sells, purchases, and quality used branded products. The tax -free ratio of sales is high, and the company has a particular strength in selling bags. Operates the corporate auction “JBA” and contributes to improving profitability ▍Store devel
Slide 47: Business/service introduction: Auctions
Corporate Profile Business/service introduction || Operate corporate auctions “KOMEHYO Auction” and “Japan Brand Auction (JBA)” Increase GMV (volume) and improve profitability through auction fees*1 ▍KOMEHYO Auction Operated by KOMEHYO Auction Co., Ltd. ▍Japan Brand Auction (JBA) Operated by K-Brand
Slide 48: Business/service introduction: WORM, Shellman, SELBY
Corporate Profile Business/service introduction | A brand specializing in products. Aim to be one-of-a-kind with core fans. ▍WORM ▍Shellman ▍SELBY ・Consignment and sale of antique watches and ・Purchasing and selling jewelry ・Purchasing and selling premium sneakers jewelry, current watches made by in
Slide 49: Business/service introduction: Tire and wheel brands
Corporate Profile Business/service introduction| A brand that handles new and used tires, wheels, etc. Integrated supply chain among three group companies ▍Craft ▍U-ICHIBAN/Auto Parts Japan ▍4×4 engineering service ・Purchasing and selling new tires and ・U-ICHIBAN ・ Comprehensive manufacturer of whee
Slide 50: Global expansion: 21 stores in total for the Group
Corporate Profile Global expansion| 21stores in total for the Group (as of June 2024) Establish a system for local production for local consumption in each country/region and grasp the characteristics of the mar ket. Aim to open stores in regions with large growth potential and build new channel. Ho
Slide 51: Medium-term management plan Quantitative Targets (FY2025 to FY2028)
Medium-term management plan Quantitative Targets (FY2025 to FY2028) We will continue to actively invest in the medium -term management plan to achieve business growth that exceeds market growth* At this point, there is no change in the quantitative targets for the fiscal year ending March 2026 and b
Slide 52: Rearrangement of matters affecting this fiscal year's performance
Initialplanoutlook Rearrangement of given matters that will affect this fiscal year's performance The brand reuse market is in an expansion phase both domestically and internationally. A business environment that allows business growth by leveraging competitive advantages, provided that store openin
Slide 53: Market price forecast for main products
Initial plan outlook Market price forecast for main products for the fiscal year ending March 2025 The market trends of each product, which is the premise of this fiscal year's plan, are forecast as follows as of May 2024 Assuming that there are no sudden changes in the external environment, such as
Slide 54: Initiatives of each brand 1
Initiatives for the fiscal Initiatives of each brand 1⃣ year ending March 2025 Continue to strengthen purchases mainly through new store openings, while bolstering retail through new store openings and e-commerce, in Japan and other countries. Opening a purchase Strengthening existing Opening a sale
Slide 55: Initiatives of each brand 2
Initiatives for the fiscal Initiatives of each brand ２⃣ year ending March 2025 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. Cooperation with
Slide 56: Initiatives of each brand 3: Auction/Brands aiming to be the Only One
Initiatives for the fiscal Initiatives of each brand 3⃣ Auction/Brands aiming to be the Only One year ending March 2025 Leverage the strengths of each of the two auctions to expand the number of members and trading volume by capturing a wide ran ge of needs Continue to refine the appeal of the brand
Slide 57: Initiatives of each brand 4: Tire and wheel business
Initiatives for the fiscal Initiatives of each brand 4⃣⃣⃣⃣ Tire and wheel business year ending March 2025 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
Slide 58: 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