Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — Q3 FY2025 Earnings Presentation
62 slides from Komehyo's earnings presentation, Feb 13, 2025
Slide 1: Earnings Results Briefing for the Third Quarter of the Fiscal Year Ending March 31, 2025
Earnings Results Briefing for the Third Quarter of the Fiscal Year Ending March 31, 2025 February 13, 2025 Komehyo Holdings Co., Ltd. Securities code: 2780 (Tokyo and Nagoya Stock Exchanges) ©Komehyo Holdings Co .,Ltd. 1
Slide 2: Summary of financial results for the third quarter
Summary of financial results for the third quarter of the fiscal year ending March 31, 2025 Sales increased and profits decreased compared to the same period last year. Strive to secure gross profit amid weak market trends 1 ・Continuing from the second quarter, the market environment for corporate t
Slide 3: Contents
Contents 1. Our business model and P.4 Medium-term management plan 2. Revisions to full-year earnings forecasts P.12 3. Consolidated results for the Second Quarter of the Fiscal Year Ending March 31, 2025 P.18 4. Segment overview for the Third Quarter P.29 of the Fiscal Year Ending March 31, 2025 5.
Slide 4: 1. Our business model and Medium-term management plan
1. Our business model and Medium-term management plan ©Komehyo Holdings Co .,Ltd. 4
Slide 5: 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 6: 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 7: Business Domains of Komehyo Holdings Group
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 Product center Product
Slide 8: Business Domains of Komehyo Holdings Group
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 9: 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 10: Position of the 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's No. 1 company company in sales of brand goods fo
Slide 11: Basic Policies for the 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 management with an Increasing dome
Slide 12: 2. Revisions to full-year earnings forecasts
2. Revisions to full-year earnings forecasts ©Komehyo Holdings Co .,Ltd. 12
Slide 13: Revised full-year earnings forecast for the fiscal year ending March 2025
Revised full-year earnings forecast for the fiscal year ending March 2025 Net sales remained higher than expected on the back of ample inventories. Gross profit margins remained lower than expected, reflecting increases in (i) the ratio of corporate sales, (ii) ratio of corporate purchases to in-sto
Slide 14: Purchasing customer unit price trends / retail ratio
reference Purchasing customer unit price trends/retail ratio| Since early August 2024, the effects of rapid exchange rate fluctuations and the prolonged slowdown in the Chinese economy have continued, and the market prices of watches and bags, especially high -end items, have been weak, and the aver
Slide 15: Brand and Fashion Business 4th Quarter Assumptions
Brand and Fashion Business 4th Quarter Assumptions BF business Based on market trend forecasts for mainstay products, we aim to secure gross profit by growing retail sales, although improvement in gross profit margin will be limited. Forecasting market trends for main products Outlook for 4th Quarte
Slide 16: Dividend forecast revision
Dividend forecast revision Annual dividend forecast is maintained at 104 yen, an increase of 4 yen from the initial plan. 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 dividend(yen) Ye
Slide 17: Medium-term management plan Quantitative Targets (FY2025 to FY2028)
Medium-term management plan Quantitative Targets (FY2025 to FY2028) During the period for the current Medium-term Management Plan, we will achieve business growth *that exceeds market growth through aggressive investment, aiming to achieve net sales of 250 billion yen and operating profit of 15 bill
Slide 18: 3. Consolidated results for the Third Quarter
3. Consolidated results for the Third Quarter of the Fiscal Year Ending March 31, 2025 ©Komehyo Holdings Co .,Ltd. 18
Slide 19: Highlights of cumulative 3rd quarter financial results
Highlights of cumulative 3rd quarter financial results for the fiscal year ending March 31, 2025 Consolidated financial results for the third quarter of the fiscal year ending March 2025 Individual purchase Consolidated Consolidated Profit attributable to Consolidated sales amount (consolidated) ope
Slide 20: Overview of income statement
Overview of income statement In the third quarter (three months) under review, both sales and profits increased year on year. In terms of results for the first three quarters under review, net income attributable to owners of parent increased. FY2025 (Millions of yen) FY2025 1Q YoY FY2025 2Q YoY FY2
Slide 21: Trends in Consolidated Net Sales and Gross Profit Margin
Trends in Consolidated Net Sales and Gross Profit Margin In addition to individual purchases remaining strong, we strengthened corporate purchases to seize sales opportunities with customers in Japan and overseas. The gross profit margin declined 2.8 points year on year in Q3. However, the enhanced
Slide 22: Analysis of consolidated operating profit
Analysis of consolidated operating profit Purchases remained strong, which resulted in sufficient in -store inventories. Regarding net sales, both retail sales and corporate sales increased significantly. Profit decreased 0.7% year on year, reflecting higher SG&A expenses linked to growth investment
Slide 23: Breakdown of consolidated Net sales
Breakdown of consolidated Net sales (Retail / Overseas/Domestic tax-free sales) 【Retail】 Strengthening of retailing has increased the retail ratio, maintaining an ideal composition ratio (Retail: Corporate = 50:50) . 【Overseas】 Overseas sales remained strong due to store openings, etc. in Hong Kong
Slide 24: Breakdown of domestic duty-free sales
Breakdown of domestic duty-free sales Due to the effect of the opening of KOMEHYO SHIBUYA, the proportion of customers from the United States increased. They are younger than the domestic customer base, with the volume zone being customers in their 30s to 40s. Composition ratio by country/region Per
Slide 25: Purchase from individual customers (Group total)
Purchase from individual customers (Group total) Both the number of customers and the purchase amount per customer remained strong and reached a record high, reflecting the continued opening of purchase centers and growth at existing stores. 118.3% YoY in 3 months of 3rd quarter Increase in purchase
Slide 26: Changes in selling, general and administrative expenses
Changes in selling, general and administrative expenses Due to new store openings and the resultant stepped -up efforts for the recruiting and training of human resources, general and administrative expenses, such as ground rent, and personnel expenses, such as salaries and allowances, increased. On
Slide 27: Balance sheet overview
Balance sheet overview Cash and deposits, non-current assets and interest-bearing liabilities increased significantly due partly to conversion of RK Enterprise Co., Ltd. and two other companies into group companies. Inventories, which are the source of sales growth and are directly linked to growth,
Slide 28: Inventory Turnover
Inventory Turnover BF business While keeping in mind turnover rates, we worked to leverage ample inventories secured through individual purchases and corporate purchases for retail and corporate sales. The effort contributed to further increasing gross profit. The cross -ratio rose significantly as
Slide 29: 4. Segment overview for the Third Quarter
4. Segment overview for the Third Quarter of the Fiscal Year Ending March 31, 2025 ©Komehyo Holdings Co .,Ltd. 29
Slide 30: Summary by segment for the third quarter
Summary by segment for the third quarter of the fiscal year ending March 31, 2025 *1 Brand Fashion business（BF） Tire and wheel business（TW） Individual purchase Net sales Operating profit Net Sales Operating profit amount 56,849 107,120 4,579 4,661 386 millions of yen millions of yen millions of yen
Slide 31: Overview by segment
Overview by segment In the Brand Fashion business, individual purchases and retail/corporate sales were strong. In the Tire and Wheel business, sales of winter and summer tires remained strong. The profit margin increased due to an incr ease in sales of used products. FY2025 FY2025 1Q YoY FY2025 2Q
Slide 32: Stores: 288 stores in total for the Group
Stores | 288 stores in total for the Group (as of December 2024) During the first nine months under review, we opened 47 stores (13 stores during the third quarter), mainly purchase centers, on a Group-wide basis. Brand Fashion Tire and wheel flagship store 6 3 1 1 Sales Stores 2（ 1 ） 6 2（-1） Stores
Slide 33: 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%. The composition ratio of corporate purchases, which was strengthened to sei
Slide 34: Status of sales reinforcement
| Status of sales reinforcement BF business 【Japan】 We tried new store operation formats, experimenting with a range of factors including their sizes, location, and the items th ey offer. 【Overseas】 In ASEAN, we continued to open new stores while simultaneously strengthening marketing at existing st
Slide 35: E-commerce-induced sales rate
| E-commerce-induced sales rate BF business Due to an increase in the number of customers and the unit price per person, EC sales increased by 102.4% compared to the sam e period of the previous year in the 3 months of the second quarter. Due to an increase in the sales ratio of foreign visitors to
Slide 36: 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 37: Status of retail sector
| Status of retail sector BF business Tax-free sales, mainly at BRAND OFF Ginza Main Store, increased significantly by 155% year -on-year in the first three months of the third quarter. We actively opened new stores with purchasing facilities and strengthened e - commerce, creating points of contact
Slide 38: Corporate auction GMV growth
| Corporate auction GMV（volume）growth BF business The number of member companies and the number of listings have increased due to an increase in the need for sales between corporations due to market fluctuations. Total GMV of the two companies was 132.2% compared to the same period of the previou s
Slide 39: Overview of tire and wheel business
| Overview of tire and wheel business TW business Sales of new winter and summer tires, as well as sales of our own manufactured wheels both domestically and overseas, were fa vorable. In addition to favorable sales from individuals, the sales ratio of winter tires increased more than expected due t
Slide 40: 5. Initiatives to achieve the medium-term management plan
5. Initiatives to achieve the medium-term management plan ©Komehyo Holdings Co .,Ltd. 40
Slide 41: Outlook for the reuse market
Outlook for the reuse market The domestic reuse market is steadily expanding, with an average annual growth rate of 4.2% expected from 2025 onwards. ▍Domestic reuse market size * • As long as there is primary distribution, resources for the reuse market w ill expand. 40,000 • We expect to reuse item
Slide 42: Continuing to open new stores aggressively
Continuing to open new stores aggressively BF business Amid intensifying competition in store openings, steady progress is being made in the opening of purchase centers at both KOMEHYO and BRAND OFF. Going forward, we will continue to open stores in Japan and overseas by adopting new concepts in ter
Slide 43: Promoting growth in three areas to achieve the mid-term management plan
Promoting growth in three areas to achieve the mid-term management plan BF business Investments such as M&A, partnerships with primary distributors, and joint ventures will lead to the expansion of the company's growth areas in the expanding brand reuse market. I n M a r c h , w e e s t a b l i s h
Slide 44: 6. Appendix
6. Appendix ©Komehyo Holdings Co .,Ltd. 44
Slide 45: Appendix
Appendix P.46 1. Company Profile 2. Global expansion P.55 3. Initiatives of each brand P.58 in the fiscal year ending March 2025 ©Komehyo Holdings Co .,Ltd. 45
Slide 46: 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 47: Business list
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 ending March 2024 119,
Slide 48: Transition of the reuse business and our history
Corporate Profile Transition of the reuse business and our history Since founding in 1947 as Komehyo Shoten, a used kimono store, we have consistently engaged in the reuse business while simultaneously moving forward with alliances and M&A. As a result, we have become a holding company under which 2
Slide 49: 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 50: Store expansion for a fashion brand business
Corporate Profile Store expansion for a fashion brand business In the Brand Fashion business, we demonstrate our strength through the successful operation of retail stores on a large scale . In addition, we engage in purchases through multiple channels such as stores annexed with sales, purchase cen
Slide 51: Business/service introduction 1
Corporate Profile Business/service introduction １⃣ ｜ The three brands, which engage in the sale and purchase of mainly second -hand brand name items, excel in the convenience of thei r stores, the reliability of their appraisal and their name awareness. They seek to achieve sustained growth in the a
Slide 52: Business/service introduction 2
Corporate Profile Business/service introduction ２⃣ ｜ We operate a B2B auction for reuse businesses. The inter -corporate transaction market price greatly influences individual purchase prices and retail prices. Auction commissions ※1 on transaction value (GMV) are revenue. KOMEHYO Japan Brand RK AUC
Slide 53: Business/service introduction 3
Corporate Profile Business/service introduction 3⃣ ｜ Brands specializing in particular products are constantly increasing the number of fans by tapping into core demand. Purchase and sale of premium Consignment and sale of antique Overview Purchase and sale of jewelry sneakers watches and jewelry St
Slide 54: Business/service introduction: Tire and Wheel
Corporate Profile Business/service introduction ｜ In the Tire and Wheel business, we engage in the purchase and sale of tires and wheels, as well as the planning and development of wheels.The supply chain is jointly maintained by the three group companies. AUTO PARTS JAPAN Purchasing and sales of ne
Slide 55: Global Expansion: Business Phases by Country (Part 1)
Global Expansion: Business Phases by Country (Part 1) Taking into account the situation in each country around the world, we will consider the possibility of deepening businesses to provide further value and that of expanding businesses into a wide range of areas, taking a balanced approach on a cou
Slide 56: Global Expansion: Business Phases by Country (Part 2)
Global Expansion: Business Phases by Country (Part 2) Based on the three-staged business phases, we will facilitate business expansion through each stage. Global expansion will be made primarily through the deepening and expansion of businesses stage by stage. United Business Phases Hong Shang Singa
Slide 57: Global expansion: 26 stores in total for the Group
Corporate Profile Global expansion| 26stores in total for the Group (as of December 2024) We have expanded into 7 overseas locations with our three brands: KOMEHYO, BRAND OFF, and Rodeo Drive. United States Hong Kong Taiwan Shanghai Thailand Singapore Malaysia of America Brands KOMEHYO BRAND KOMEHYO
Slide 58: 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 Strengthen glo
Slide 59: 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 60: 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 range of needs Continue to refine the appeal of the brand
Slide 61: 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 62: 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