Komehyo Holdings Co., Ltd. · TSE:2780

Komehyo — Q3 FY2018 Earnings Presentation

20 slides from Komehyo's earnings presentation, Feb 9, 2018

  1. Slide 1: Earnings Results Briefing for the Third Quarter of the Fiscal Year Ending March 31, 2018

    Earnings Results Briefing for the Third Quarter of the Fiscal Year Ending March 31, 2018 February 9 2018 KOMEHYO Co., Ltd. Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges) Corporate Planning Department IR strategy group TEL:+81-52-249-5366 Note: This document is an English tr

  2. Slide 2: Overview of Income Statement (Consolidated)

    Overview of Income Statement （ Consolidated ） FY2018 FY2018 FY2018 FY2018 Consolidated 1Q YoY 2Q YoY YoY YoY (Millions of yen) 3Q ９months (‘17.4-6) (‘17.7-9) (‘17.10-12) (‘17.4-12) Net sales 9,849 107.6％ 10,913 111.2％ 13,153 119.0％ 33,916 113.0％ Gross profit 2,940 115.8％ 2,988 116.5％ 3,895 123.5％ 9,

  3. Slide 3: Overview of Income Statement (Non-consolidated)

    Overview of Income Statement （ Non-consolidated ） Non- FY2018 FY2018 FY2018 FY2018 Consolidated 1Q YoY 2Q YoY 3Q YoY ９months YoY (Millions of yen) (‘17.4-6) (‘17.7-9) (‘17.10-12) (‘17.4-12) Net sales 8,673 107.7％ 9,858 111.6％ 10,894 120.0％ 29,427 113.3％ Gross profit 2,499 116.0％ 2,579 115.6％ 3,103 1

  4. Slide 4: Operating income decrease factor (Consolidated)

    Operating income decrease factor （ Consolidated ） Operating income General and Gross profit Marketing cost Personal administrative (Millions of yen) 1.5Pt Margin increase increase expenses expenses +493 △206 increase increase △22 △388 Sales amount increase +1,071 +1,461 An increase in card commissio

  5. Slide 5: Gross Profit Margin Trend

    Gross Profit Margin Trend Improvement from a year earlier due to reinforced inventory controls Consolidated Non-consolidated （％） FY2017 Gross profit margin （％） FY2017 Gross profit margin FY2018 Gross profit margin FY2018 Gross profit margin 32 32 29.9 29.6 30 30 28.8 28.5 28 27.4 28 28.5 28.5 27.7 2

  6. Slide 6: Overview of Balance Sheet

    Overview of Balance Sheet Increase in fixed assets due to factors including the opening of large stores. (on a year-on-year basis) Consolidated (Millions of yen) Non-consolidated (Millions of yen) Cash and deposits Current 3,548 Current Cash and Cash and liabilities Current liabilities deposits depo

  7. Slide 7: By Segment

    By Segment The Brand Fashion Business Earnings improvement progressed FY2018 FY2018 FY2018 FY2018 (Millions of yen) 1Q YoY 2Q YoY 3Q YoY ９months YoY (‘17.4-6) (‘17.7-9) (‘17.10-12) (‘17.4-12) Net sales 8,827 107.9％ 10,027 112.1％ 11,092 120.5％ 29,947 113.7％ Fashion Brand Operating 157 － 315 1,631.7%

  8. Slide 8: Revised FY2018 plan

    Revised FY2018 plan Upward adjustment from the revision made in August Revised Non- Revised Consolidated YoY consolidated YoY (Millions of yen) FY2018 Plan (Millions of yen) FY2018 Plan Net sales 44,800 111.6% Net sales 39,000 111.8% Operating Operating 1,580 189.8% 1,070 212.8% income income Ordina

  9. Slide 9: Economic Trend

    Economic Trend The economic environment remains on a moderate recovery path Stock Price Net sales Department store(fine arts/jewelry/precious metals) (yen) YoY (%) KOMEHYO net sales(non-consolidated) 140 24,000 Nikkei Stock Average(monthly closing price) 130 22,000 120 20,000 110 100 100 18,000 90 1

  10. Slide 10: Initiative① Opening of New Stores

    Initiative① Opening of New Stores Large stores were opened near major railway stations in Tokyo, Nagoya, and Osaka 【Umeda store (‘17.2)】 【Shinjyuku store ANNEX(‘17.5)】 【Meieki store(‘17.5)】 9

  11. Slide 11: Initiative② E-commerce-induced sales

    Initiative② E-commerce-induced sales “Buy Online and Pick up in Store,” connecting brick-and-mortar stores with e-commerce sites, is on an upward trend FY2018 FY2018 FY2018 FY2018 (Millions of yen) 1Q YoY 2Q YoY 3Q YoY ９months YoY (‘17.4-6) (‘17.7-9) (‘17.10-12) (‘17.4-12) E-commerce- induced sales

  12. Slide 12: Initiative③ Purchase from Individual Customers

    Initiative③ Purchase from Individual Customers Purchases by individual customers have maintained an upward trend due to advertising and publicity. Amount of purchase FY2018 FY2018 FY2018 FY2018 from 1Q YoY 2Q YoY 3Q YoY ９months YoY individual (‘17.4-6) (‘17.7-9) (‘17.10-12) (‘17.4-12) customers Purc

  13. Slide 13: Initiative④ Enhancement of purchases: LS Kamakuradai store

    Initiative④ Enhancement of purchases :LS Kamakuradai store Establishment of Purchasing Center —Enhancement of purchases from individual customers 【LINK SMILE Kamakuradai store】(‘18.2.9) The third store after USED MARKET Inazawa store(‘17.4)、 LINK SMILE Uedayama store(‘17.7) More convenient for custo

  14. Slide 14: Initiative⑤ Challenge to The C-to-C Business

    Initiative⑤ Challenge to The C-to-C Business The C-to-C Business: Free market app “KANTE” 【Free market app “KANTE”】 Service started in November 2017 Free market app specializing in brand-name products Providing purchasers with a sense of assurance through judgment of authenticity Nurturing a healthy

  15. Slide 15: Subsidiary① KOMEHYO Auction

    Subsidiary① KOMEHYO Auction Expand sales channels of used products, reinforce procurement and collect industry information FY2018 ９months Trade volume YoY No. of member (Millions of yen) companies Jewelry Watches 13,300 114.3％ 810 Bags ※70 companies increased this term Clothing 260 116.5% 【State of

  16. Slide 16: Subsidiary② KOMEHYO HONG KONG

    Subsidiary② KOMEHYO HONG KONG Strengthen purchases of used products in Japan for exploring overseas sales channels Net sales YoY (Millions of yen) FY2018 ９months 962 161.2％ 【Hong Kong Jewelry show】 15

  17. Slide 17: Subsidiary③ Craft、Auto Parts Japan

    Subsidiary③ Craft、Auto Parts Japan Sale of tires, wheels, and vehicle parts 【EURO STYLE Craft】 FY2018 Opened in Craft Nagoya Dome West store Net sales YoY ９months (Millions of yen) 2F in September 2017 (‘17.4-12) Support customization focusing on euro compact car Tires/wheels 3,371 111.7％ Parts 455

  18. Slide 18: Subsidiary④ Eve Corporation、Ark marketing japan

    Subsidiary④ Eve Corporation、Ark marketing japan We converted e-commerce apparel and shoe-care stores into subsidiaries in December 2017 Company name Eve Corporation Co.,Ltd. Ark marketing japan Co.,Ltd. Established May 2010 August 2013 Head Office Jiyugaoka, Meguro ku Tokyo Capital 9 million yen 1 m

  19. Slide 19: Reference Information① Store Type

    Reference Information① Store Type 26 stores 5 stores Large-scale Nagoya Store，Meieki Store, Sales/Purchase ※ Shinjuku Store/ANNEX， Ladies casual Ginza Store，Umeda Store clothing, bags, Sales/Purchase accessories Jewelry, precious metals, watches, bags, clothing , etc. 6stores Mid-scale 3 stores Open

  20. Slide 20: Reference Information② Shareholder return

    Reference Information② Shareholder return Dividend changes Dividend(yen) Payout ratio(％) 40 Fiscal year-end dividend Interim dividend Payout ratio Forecast 100 92.4 35 90 30 80 30 70 25 60 20 50 15 36.2 40 29.3 10 23.0 30 19.4 5 16.0 16.6 15.5 15.0 13.2 24.8 20 0 10 FY2007 FY2008 FY2009 FY2010 FY201

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