Komehyo Holdings Co., Ltd. · TSE:2780

Komehyo — Q2 FY2015/3 Earnings Presentation

42 slides from Komehyo's earnings presentation, November 2014

  1. Slide 1: KOMEHYO Q2 FY2015/3 Results Presentation

    KOMEHYO 2015 3 BRASH AsE 2014%F11A128 als o—k :2780( Flak 0 8. Sak 0 BB)

  2. Slide 2: KOMEHYO

    KOMEHYO

  3. Slide 3: 3

    3

  4. Slide 4: KOMEHYO

    KOMEHYO

  5. Slide 5: KOMEHYO group companies

    KOMEHYO KOMEHYO HONG KONG LIMITED KOMEHYO USED MARKET LINK SMILE 5

  6. Slide 6: Group company overview

    2015 3 0% 20% 40% 60% 80% 100% KOMEHYO KOMEHYO HONG KONG LIMITED KOMEHYO 2012 6 2013 6 1980 4 2013 5 20 40 72 30 6

  7. Slide 7: Group businesses and online shop

    ( ) 158.9 2014 3 KOMEHYO KOMEHYO LINK SMILE LINK SMILE USED MARKET USED MARKET WEB WEB KOMEHYO KOMEHYO ONLINE SHOP 1,242 7

  8. Slide 8: 200 1 100 2

    200 1 100 2 2 1 1 1 8

  9. Slide 9: KOMEHYO

    KOMEHYO

  10. Slide 10: LINK SMILE by KOMEHYO

    KOMEHYO () LINKSMILE by KOMEHYO 10

  11. Slide 11: USED MARKET by KOMEHYO

    KOMEHYO USED MARKET by KOMEHYO +2000, 1500 USED MARKET 11

  12. Slide 12: 12

    12

  13. Slide 13: Store openings 2012-2014

    6 220 200 2012.10 2014.9 180 160 140 120 100 80 60 2012 2013 2014 13

  14. Slide 14: BtoC

    BtoC 6,000 BtoC 5,000 4,000 3,000 2,000 1,000 0 1982 1985 1988 1991 1994 1997 1999 2002 2004 2007 2012 14

  15. Slide 15: KOMEHYO

    KOMEHYO +4 2012 2013 2014 130 ©2014 10 15

  16. Slide 16: BtoC sales trends

    1,400,000 160 1,200,000 140 120 1,000,000 100 800,000 80 600,000 60 400,000 40 200,000 20 0 0 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 2012 2013 2014 2,326 115.2 2Q 1.0% ( ) ( ) ( ) 23.1% 44.7% 1,077 46.3 108.2 346 14.9 85.9 151 6.5 154.5 31.2% 16

  17. Slide 17: BtoB

    107 113 • 36 37 7 2Q 6.3 • 36 37 2Q 106.3 4.6 • • 21 249 74 • • BtoB • 17

  18. Slide 18: BtoB initiatives

    KOMEHYO 3 1 • – 2 → 3 – 6 72 142.4 – 9 16.5 • – 1.5 94 249.7 • 400 • • BtoB 18

  19. Slide 19: KOMEHYO store openings

    2013 5 KOMEHYO • 428,560 114.0 • 52,532 159 5 30 OPEN 35 8 8 OPEN ( 75 ) 10 11 OPEN 19

  20. Slide 20: Web marketing

    27 106 • – 133 12.3% 29.2% – 108 HP 58.6% • – 150 HP komehyo.jp – 127 WEB Yahoo • • Google – 20

  21. Slide 21: CRAFT

    KOMEHYO CRAFT

  22. Slide 22: Q2 consolidated results

    2013/3 2014/3 2015/3 2Q 2Q 2Q 13,598 16,609 17,967 108.2% 448 1,220 1,001 82.0% SALE 3.3% 7.4% 5.6% 1.8pt 1,514 1,527 1,476 96.7% 33 77 85 ― 2.2% ― ― ― 21 71 72 102.0% 15 12 18 141.7% 71.6% 18.1% 25.2% 7.1pt 15,134 18,188 19,495 107.2% 497 1,156 934 80.8% 3.3% 6.4% 4.8% 1.6pt 22

  23. Slide 23: Results by period

    13/3 2Q 14/3 2Q 15/3 2Q 15,134 18,188 19,495 107.2% 102.6% 4,677 5,723 5,924 103.5% 99.7% 4,179 4,566 4,989 109.3% 102.2% 497 1,156 934 80.8% 88.2% 490 1,152 954 82.8% 90.1% 277 705 596 84.6% 96.2% 13/3 2Q 14/3 2Q 15/3 2Q 13,572 16,469 17,817 108.2% 103.0% 4,116 5,019 5,251 104.6% 99.8% 3,664 3,832

  24. Slide 24: Sales by segment

    422 14/3 15/3 2Q 2Q 746 874 128 117.2% 2,158 2,367 208 109.7% 952 1,079 127 113.4% 1,661 1,747 85 105.2% 760 817 57 107.6% 4,566 4,989 422 109.3% 14/3 15/3 2Q 2Q 677 878 201 129.7% 217 261 43 120.2% 69 106 36 153.3% 22 106 83 468.7% 1,831 2,042 210 111.5% 1,323 1,412 89 106.7% 3,832 4,333 500 113.1%

  25. Slide 25: KOMEHYO

    KOMEHYO 1.0pt SALE 109.3 107.2 25

  26. Slide 26: KOMEHYO

    KOMEHYO 1,028 S| | ; : ; : ° 1,028 2,000 26

  27. Slide 27: Cash flow

    CF 3,655 3,500 3,181 3,500 3,000 3,000 2,755 2,500 2,222 2,500 2,200 2,000 2,000 1,510 1,513 1,524 1,500 1,211 1,500 955 1,041 1,000 745 1,000 500 229 500 -652 155 -297 -771-384 -368 -181 -396 -425 -552 -431 0 0 -500 13/3 2Q 14/3 2Q 15/3 2Q -500 13/3 2Q 14/3 2Q 15/3 2Q -1,000 -1,000 27

  28. Slide 28: 28

    28

  29. Slide 29: LINK SMILE and USED MARKET openings

    37 2 → 1 KOMEHYO by KOMEHYO LINK SMILE 10/11 USED MARKET OPEN WEB B2B KOMEHYO 29

  30. Slide 30: Full-year forecasts

    22,504 102.2% 42,000 104.4% 7,375 106.8% 13,300 105.3% 5,210 103.0% 10,200 105.9% 2,165 117.5% 3,100 103.3% 2,145 116.9% 3,100 103.7% 1,303 115.4% 1,900 103.6% 19,482 104.1% 37,300 106.0% 6,268 109.7% 11,520 107.3% 4,386 103.8% 8,720 108.2% 1,882 126.5% 2,800 104.7% 1,841 124.5% 2,790 104.4% 1,096 1

  31. Slide 31: WEB and IT initiatives

    13 3 WEB WEB WEB IT KOMEHYO ONLINE SHOP IT 31

  32. Slide 32: WEB

    198.3 WEB AXEL ARDI ( ) 2014 8 32

  33. Slide 33: Store opening plans 2015-2017

    2015 3 2016 3 2017 3 373 390 420 2,800 2,880 3,050 7.5 7.4 7.3 13 20 - KOMEHYO 7 10 - by KOMEHYO 6 10 - 33

  34. Slide 34: Medium-term sales plan

    50,000 50,000 47,000 44,500 45,000 45,000 42,000 42,000 40,212 39,000 40,000 40,000 37,300 35,176 34,368 35,000 35,000 30,251 30,000 30,000 25,000 25,000 20,000 20,000 15,895 15,000 15,000 13,721 10,000 10,000 5,000 5,000 0 0 2013/3 2014/3 2015/3 2016/3 2017/3 2013/3 2014/3 2015/3 2016/3 2017/3 34

  35. Slide 35: Medium-term profit plan

    3,250 3,250 3,400 3,400 2,999 2,988 3,100 3,100 2,103 2,096 1,900 2,000 2,100 1,834 1,251 13/3 14/3 15/3 16/3 17/3 2,880 2,870 3,050 3,040 2,674 2,672 2,800 2,790 1,830 1,826 1,690 1,740 1,850 1,637 1,090 13/3 14/3 15/3 16/3 17/3 35

  36. Slide 36: 30

    30 25 20 15 10 5 0 27 28 29 30 31 32 33 34 35 36 37 36

  37. Slide 37: 37

    37

  38. Slide 38: Market trends

    12 450 400 350 300 250 200 150 100 50 0 '03.3 '04.3 '05.3 '06.3 '07.3 '08.3 '09.3 '10.3 '11.3 '12.3 '13.3 '14.3 38

  39. Slide 39: BtoC market

    BtoC 1.2 CtoC 2014 BtoC 75 270 2014 BtoC 3,417 5,124 3,002 2014 BtoC 2014 7 25 39

  40. Slide 40: KOMEHYO

    KOMEHYO 2009 4

  41. Slide 41: Store map

    MAP [ FEB J KOMEHYO 44 BA (AR EbOR- AXTRBM- BREYY-KA) KOMEHYO #84 YO—KIG KOMEHYO #5 LINK SMILE #@ Ale UNK SMILE BxEfrOLs LINK SMILE #8 FAW LINK SMILE 947799» fille LINK SMILE 2RAZ-1JL15 LINK SMILE 4A4YE—-LZHBHBEE LINK SMILE 37-4 S015 LINK SMILE 2272S piscine) USED MARKET il ZaF4ecs USED MARKET f@R1&

  42. Slide 42: KOMEHYO

    KOMEHYO

Komehyo Holdings — Q2 FY2015/3 Earnings Presentation on 6ix