Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — Q3 FY2022 Earnings Presentation
45 slides from Komehyo's earnings presentation, Feb 14, 2022
Slide 1: Earnings Results Briefing for the Third Quarter of FY Ending March 2022
Earnings Results Briefing for the Third Quarter of the Fiscal Year Ending March 31, 2022 February 14, 2022 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 Third Quarter of the Fiscal Year Ending March 31, 2022 ２．Initiatives for the Third Quarter of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 2
Slide 3: Overview of Financial Results for the Third Quarter
１．Overview of Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022 ２．Initiatives for the Third Quarter of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 3
Slide 4: FY 2022 3Q Financial Summary
FY 2022 3Q Financial Summary 【Nine months results】 ・Both net sales and profits grew year on year. ・Record high purchases from individuals due to store openings and purchase events, etc. and opened 27 purchase centers (of which, two are franchised stores) ・Strong corporate sales of the Brand Fashion
Slide 5: Revisions to full-year performance plan for the fiscal year ending March 31, 2022
Revisions to full-year performance plan for the fiscal year ending March 31, 2022 Net income Operating Ordinary attributable Basic earnings (Millions of yen) Net sales per share income income to owners of parent Forecasts released previously 63,200 2,190 2,110 1,470 134.17 Revised forecasts announce
Slide 6: Economic Trend
Economic Trend Komehyo's sales are less susceptible to the impact of the COVID-19 because of the OMO initiatives and other factors. 30,000 Nikkei Stock Average(monthly closing price)(yen) 20,000 Department store(fine arts/jewelry/precious metals)(10 millions of yen) KOMEHYO Net sales(Millions of yen
Slide 7: Overview of income statement
Overview of income statement FY2022 FY2022 FY2022 YoY FY2022 YoY (Millions of yen) YoY YoY 3Q ※ ※ 1Q 2Q 9months Net sales 14,162 180.1% 16,472 127.1% 19,237 127.1% 49,872 138.7% Gross profit 3,985 211.1% 4,215 124.5% 5,067 113.3% 13,267 136.1% Gross profit margin 28.1％ ＋4.1pt 25.6％ △0.5pt 26.3% △3.3
Slide 8: Operating income increase and decrease factor
Operating income increase and decrease factor Sales increased on strong purchases from individuals. As expense control was successful, operating income rose significantly. Personal expenses increased due to normal business operation. △425 Increase in selling expenses such as SG&A Expenses advertisin
Slide 9: Non-operating income(loss) / Extraordinary income(loss)
Non-operating income(loss) / Extraordinary income(loss) (Millions of yen) Non-operating loss 47 Extraordinary loss 380 Non-operating income 56 Extraordinary income 23 Foreign exchange gain 22 Interest expenses 37 Grant income 13 Impairment loss※ 235 Dividend income 14 Other 10 Gain on sale of Loss o
Slide 10: Balance sheet overview
Balance sheet overview (Millions of yen) FY2021 FY2022 3Q Change Current assets 27,286 29,111 ＋1,825 →Normalization of cash on hand Cash and deposits 10,538 8,109 △2,429 as a precaution against COVID-19 Products 12,649 16,229 +3,579 →Newer used products are on the increase Other current assets 4,097
Slide 11: Overview by segment
Overview by segment In the Brand Fashion business, both sales and profit increased thanks to favorable purchases from individuals and the strong results of auctions among companies. Sales and profit also increased in the Tire and Wheel business owing to the strong sales of winter tires. FY2022 FY202
Slide 12: Breakdown of consolidated Net sales (Retail / Overseas)
Breakdown of consolidated Net sales (Retail / Overseas) The hybrid business of retail and corporate sales is balanced across the Group as a whole. Even including the third quarter, which is the busy season in Japan, the ratio of overseas sales remained steady at 10% of total sales. Overseas 10% Corp
Slide 13: Trends in Consolidated Net sales and Gross Profit Margin
Trends in Consolidated Net sales and Gross Profit Margin In 3Q, corporate sales with low gross margins increased significantly due to strong purchases from individuals. Gross profit margin(%) 29.6 27.5 27.7 28.1 25.9 26.1 25.6 26.3 24.0 24.3 24.0 Net Sales (Millions of yen) 19,237 15,288 14,999 14,7
Slide 14: Purchase from individual customers (Group total)
Purchase from individual customers (Group total) Purchases from individuals remained favorable with the opening of Komehyo’s purchasing centers, the holding of KAITORI Go purchasing events, and an increase in the amount of purchases per customer. In particular, the purchase price of watches increase
Slide 15: Changes in corporate auction trade volume
Changes in corporate auction trade volume JBA auctions (particularly the offline auctions in Kanazawa) continued to be strong due to an increase in the number of registered members. The total volume of auctions among companies increased 15% YoY. Number of registered 2,743 2,755 2,812 2,966 3,095 mem
Slide 16: E-commerce-induced sales rate(KOMEHYO)
E-commerce-induced sales rate(KOMEHYO) The e-commerce contribution ratio increased 4.4pt YoY, despite an increase in store purchases, mainly of clothing, as the COVID-19 situation eased. E-commerce-induced sales grew 27% YoY. E-commerce-induced sales rate：EC Sales as a Percentage of Retail Sales 48.
Slide 17: Initiatives for the Third Quarter
１．Overview of Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022 ２．Initiatives for the Third Quarter of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 17
Slide 18: Stores: Group total 126 stores ('21.12)
Stores：Group total 126 stores（‘21.12) Brand Fashion Tire and Wheel Flagship stores ５ ２ 1 Sales Stores 2 － 6 2 10 4 Stores annexed with sales facilities 11 6 ２ Purchasing Center 49 10(FC2) Overseas 5 11 Total 70 8 25 7 2 10 4 BRAND OFF WORM OSAKA Shellman GINZA store Craft NAKAGAWA store KANAZAWA sto
Slide 19: Opened stores in FY2022 3Q（KOMEHYO）
Opened stores in FY2022 3Q（KOMEHYO） KOMEHYO opened 22 purchasing centers in the 3Q of the fiscal year and is making steady progress towards the goal of opening 30 stores in the fiscal year. West Japan East Japan 1Q HAKATA HANKYU 1Q HIBARIGAOKA PARCO AEON MALL IBARAKI SAPPORO TOKYO KAWANISHI HANKYU 2
Slide 20: Product distribution image（KOMEHYO)
Product distribution image（KOMEHYO) ・Stores Purchase ・Suitable for retail Retail ・Stores ・Home delivery Purchasing from ・Web 46％ ・Purchasing at events individual KOMEHYO website Others website ・Purchasing at visited sites customers KOMEHYO 69％ Product center Quality Market price Distribution Purchas
Slide 21: Relocation of Ginza store (KOMEHYO)
Relocation of Ginza store (KOMEHYO) With the expiration of the contract period, the current Ginza store will be open until February 15, 2022 (Tuesday). After the relocation, the new store will offer convenient OMO experiences such as "one-to-one customer service" and "e-commerce back orders," etc. P
Slide 22: Strengthening OMO that will continue from the previous term
Strengthening OMO that will continue from the previous term （KOMEHYO） WEB customer SNS service Purchase - sale Reserve Contact Center Membership One to One registration only customer service with a phone number Increase customer LTV CX Strategy including sale and purchase Live Commerce 22
Slide 23: Human resources development（KOMEHYO）
Human resources development（KOMEHYO） The development of appraisers who support the opening of purchasing centers focuses on education to enable each appraiser to appraise multiple merchandise types. Process of appraisers’ skill learning 4th products 3rd products 2nd products Specialty products Appra
Slide 24: Human resources development（KOMEHYO）
Human resources development（KOMEHYO） The number of female appraisers is rising each year due to the systematization of training. Of the 73 stores in Japan, the number of female store managers and assistant managers increased to 14 stores. Appraiser skill composition Female male FY2018 FY2022 3Q 0% 2
Slide 25: Assessment of authenticity and model numbers through AI
Assessment of authenticity and model numbers through AI AI to assess authenticity and model numbers, supporting the opening of purchasing centers, has been installed in all KOMEHYO stores specializing in purchasing. Formation of reuse market which customers can use with peace of mind ・Improvement of
Slide 26: Sustainable efforts（KOMEHYO）
Sustainable efforts（KOMEHYO） Cooperate with commercial facilities as an effort to increase merchandise value and promote the appeal of the merchandise using POP ads, etc. Raise merchandise value by editing Remake jewelry Old Shoes Restore 26
Slide 27: Frequency of corporate auctions
Frequency of corporate auctions KOMEHYO Auction and JBA complement each other in terms of area, date and format of the event. FY2022.1Q 2Q 3Q Jewels / watches / Online auction 2 times/ month bags Apparel Online auction Monthly KOMEHYO AUCTION clothing JBA Real auction Monthly Kanazawa JBA Tokyo Onli
Slide 28: Oversea（KOMEHYO Shanghai (CHINA)）
Oversea（KOMEHYO Shanghai (CHINA)） KOMEHYO Shanghai now has three stores: Shanghai Isetan (photo on the left) and Shanghai Takashimaya's limited-time stores have been converted to permanent stores, and a new store has been opened at LaLa Station (photo on the right). 28
Slide 29: Tire and Wheel
Tire and Wheel Sales of both summer and winter products were higher than the previous year and remained strong. Amid a rash of wheel shortages in the industry, sales and profits were secured with ample inventory on hand. 29
Slide 30: Reference Information (Company Profile, etc.)
１．Overview of Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022 ２．Initiatives for the Third Quarter of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 30
Slide 31: 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: 924 Non-cons
Slide 32: 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 33: We will pass 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 upcy
Slide 34: 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 35: Business system diagram
Business system diagram purchase Sales Stores Stores General customers, etc. General customers, etc. Home delivery Purchasing WEB Purchasing at events AUCTION Purchasing at visited sites New and used goods business Used goods business 35
Slide 36: Gross Merchandise Value
Gross Merchandise Value Gross merchandise value (GMV) increased from two fiscal years earlier primarily due to the consolidation of K-Brand Off. Gross Merchandise Value (100 millions of yen) 40,778 41,097 39,071 36,420 31,926 32,962 27,692 FY2019 1H FY2019 2H FY2020 1H FY2020 2H FY2021 1H FY2021 2H
Slide 37: Sales plan
Sales plan 67,000 (Millions of yen) 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 ※ Changes were made to business plans for the first half and the fiscal year announced at the beginning of the fiscal year. No chan
Slide 38: Operating Profit Plan
Operating Profit Plan Operating Income 7.5 Margin (%) 7.2 6.1 3.7 4.4 3.6 2.1 0.5 1.2 Operating Income (Millions of yen) 3,129 2,999 2,950 2,789 1,860 1,625 832 590 297 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 ※ Changes were made to business plans for the first ha
Slide 39: Ordinary income/Net income Plan
Ordinary income/Net income Plan Net income (Millions of yen) Ordinary attributable income to owners of 3,162 parent 2,988 2,940 2,742 2,040 1,834 1,826 1,830 1,696 1,610 1,073 1,009 815 355 431 9 △ 234 △ 595 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 ※ Changes were
Slide 40: 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 40
Slide 41: 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 42: Medium-term Management Plan : Brand・Fashion
Medium-term Management Plan : Brand・Fashion １．toC - Strengthening of the scheme of purchasing from individuals and retailingh ・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
Slide 43: 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 44: Shareholder return
Shareholder return Komehyo Holdings aims for a stable dividend increase from now after a decline in dividends until the previous business year due to the COVID-19 pandemic. 92.4 Payout ratio(%) 36.2 30.6 34.7 24.8 29.3 19.4 23.0 16.6 15.5 15.0 16.8 Fiscal year-end dividend Interim dividend (planned)
Slide 45: 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