Slide 1: Earnings Results Briefing for the Fiscal Year Ended March 31, 2020
Earnings Results Briefing for the Fiscal Year Ended March 31, 2020 May 2020 KOMEHYO Co., Ltd. Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges) Corporate Planning Department IR strategy group TEL:+81-52-249-5366
Slide 2: INDEX
INDEX １．Measures to prevent the spread of the novel coronavirus P.02 ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2020 P.05 ３．Business status P.22 ４．Plan for the Fiscal Year Ending March 31, 2021 Medium-term Management Plan P.41 ５．Reference Information (Company Profile, etc.)
Slide 3: Measures to prevent the spread of the novel coronavirus
Measures to prevent the spread of the novel coronavirus Determine sales policies by giving top priority to the safety of customers and employees 【Current response】 【store】 Kanto area：Temporary shutdown from Wednesday, April 8 Kansai and Chubu area：Temporary shutdown from Friday, April 17 Partial pos
Slide 4: Measures to prevent the spread of the novel coronavirus: response during suspension of work
Measures to prevent the spread of the novel coronavirus Suspension of coming to work, online store sales, web-based education, and telecommuting 【Response during suspension of work】 ・Online store : Open for business Customers ・Home delivery Purchasing： Open for business(Non-Consolidated) ・Scheduled
Slide 5: Overview of Financial Results
１．Measures to prevent the spread of the novel coronavirus P.02 ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2020 P.05 ３．Business status P.22 ４．Plan for the Fiscal Year Ending March 31, 2021 Medium-term Management Plan P.41 ５．Reference Information (Company Profile, etc.) P.45 4
Slide 6: FY 2020 Financial Summary
FY 2020 Financial Summary 【Performance Highlights】 Net sales (consolidated/non-consolidated) and the amount of purchase from individual customers (non-consolidated) both were record highs Consolidated YoY Non-Consolidated YoY Net Sales 112.9％ Net Sales 108.8％ Operating income 16.0％ Operating income
Slide 7: Economic Trend
Economic Trend The recent consumption tax hike, the novel coronavirus, etc. have had a major impact Net sales the novel coronavirus Stock Price YoY (%) Department store(fine arts/jewelry/precious metals) （yen） KOMEHYO net sales(non-consolidated) Nikkei Stock Average(monthly closing price) 200 tax hi
Slide 8: Overview of Income Statement (Consolidated)
Overview of Income Statement （ Consolidated ） (Millions of yen) FY2018 FY2019 FY2020 Change YoY Net sales 45,497 50,960 57,510 ＋6,550 112.9％ Gross profit 12,968 13,796 14,562 ＋765 105.6％ Gross profit margin 28.5％ 27.1％ 25.3％ △1.8pt － SG&A expenses 11,342 11,936 14,265 ＋2,328 119.5％ Operating income
Slide 9: Overview of Income Statement (Non-Consolidated)
Overview of Income Statement （ Non-Consolidated ） (Millions of yen) FY2018 FY2019 FY2020 Change YoY Net sales 39,682 44,391 48,307 ＋3,915 108.8％ Gross profit 10,869 11,559 11,564 ＋4 100.0％ Gross profit margin 27.4％ 26.0％ 23.9％ △2.1pt － SG&A expenses 9,716 10,042 11,093 ＋1,051 110.5％ Operating income
Slide 10: Net sales (Consolidated)
Net sales (Consolidated) Net sales (Millions of yen) Brand Fashion Tire and Wheel Others 57,510 50,960 45,903 45,497 43,199 40,212 40,134 34,368 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 9
Slide 11: Profit Margin Trend (Consolidated)
Profit Margin Trend (Consolidated) （％） Gross profit margin SG&A expenses to sales ratio 35 Operating income margin 30.9 31.4 30.5 28.5 27.8 28.5 30 27.1 25.3 25 24.8 25.7 24.9 24.8 20 23.9 23.2 23.4 22.4 15 10 7.5 7.2 6.1 6.1 3.6 3.7 5 2.1 0.5 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY202
Slide 12: SG&A expenses (Consolidated)
SG&A expenses (Consolidated) (Millions of yen) Selling expenses 14,265 14,000 Personal expenses Administrative expenses 11,936 12,000 11,342 10,038 10,271 10,312 9,627 10,000 8,518 8,000 6,000 4,000 2,000 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 11
Slide 13: Operating Income (Consolidated)
Operating Income (Consolidated) Operating Income Operating Income (Millions of yen) Brand Fashion Tire and Wheel Others Operating income margin Margin (%) 3,129 2,999 3,100 2,789 tax hike, the novel 9 2,800 2,103 coronavirus, etc. have 2,500 had a major impact 2,200 7 7.5 1,860 7.2 1,900 1,625 6.1 6
Slide 14: Ordinary income/Net income attributable to owners of parent (Consolidated)
Ordinary income/Net income attributable to owners of parent(Consolidated) (Millions of yen) Ordinary income Net income attributable 4,000 to owners of parent 3,500 tax hike, the novel 3,162 2,988 coronavirus, etc. have 3,000 2,742 had a major impact 2,500 2,096 2,040 2,000 1,834 1,826 1,696 1,610 1,
Slide 15: ROA/ROE (Consolidated)
ROA･ROE(Consolidated) ROA ROE （％） 13.7 13.2 tax hike, the novel 11.1 coronavirus, etc. have 10.7 12.9 12.8 had a major impact 9.7 9.7 6.1 6.3 3.3 5.8 5.2 0.0 2.0 △ 1.2 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 14
Slide 16: Gross Merchandise Value (Consolidated)
Gross Merchandise Value （ Consolidated ） Increased 10.0 billion yen through an increase in purchase from individual customers and the conversion of K-Brand Off into a group company, etc. Gross Merchandise Value (100 millions of yen) 748 648 FY2019 FY2020 GMV is calculated simply by adding and subtra
Slide 17: Operating income decrease factor (Consolidated)
Operating income decrease factor （ Consolidated ） Profit decrease due to increases in expenses, such as rents and personnel expenses (Millions of yen) Gross Profit margin decrease △1,007 Sales amount increase ＋1,773 SG&A Expenses increase △2,328 Increase in administrative expenses due to 1,860 the l
Slide 18: Ordinary income decrease factor (Consolidated)
Ordinary income decrease factor （ Consolidated ） Profit decreased due to increase in non-operating expenses (Millions of yen) Share of loss of entities accounted for using the equity method, including the closure and liquidation of Beijing joint venture company △100 297 45 Rent prior to the opening
Slide 19: Overview of Balance Sheet
Overview of Balance Sheet (Consolidated) Surge in current liabilities mainly due to turning K-Brand OFF into a group company Consolidated Total assets Liabilities and Non-Consolidated (Millions of yen) Net Assets 35,611 Total assets 35,611 Cash and Liabilities and Total assets Total assets Liabiliti
Slide 20: Statement of Cash Flows (Consolidated)
Statement of Cash Flows (Consolidated) Net cash flow from operating activities was negative mainly due to an increase in inventories resulting from the conversion of K-Brand Off into a group company, etc. Cash flows from operating activities Cash flows from investing activities Cash flows from finan
Slide 21: By Segment
By Segment (Millions of yen) FY2018 FY2019 FY2020 Change YoY Net sales 40,618 46,377 53,886 ＋7,509 116.2％ Fashion Brand Operating 1,476 1,730 424 △1,305 24.6％ income Operating 3.6％ 3.7％ 0.8％ △2.9pt － margin Net sales 4,787 4,507 3,544 △962 78.6％ Tire and Wheel Operating 95 95 △128 △224 － income Oper
Slide 22: Business status
１．Measures to prevent the spread of the novel coronavirus P.02 ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2020 P.05 ３．Business status P.22 ４．Plan for the Fiscal Year Ending March 31, 2021 Medium-term Management Plan P.41 ５．Reference Information (Company Profile, etc.) P.45 2
Slide 23: Brand・Fashion Initiatives 1
Brand･Fashion Initiatives 1 FY2020 Target Results, etc. 1． Strengthening Individual Purchase →(Non-Consolidated) Amount of purchase from *Promoting Alliance and Purchasing Events individual customers：Record high of 24.1 billion yen *Continue to open stores specializing in →(Non-Consolidated) Fifty o
Slide 24: Brand・Fashion Initiatives 2
Brand･Fashion Initiatives 2 FY2020 Target Results, etc. 4． Strengthening the EC *Omni Channel →(Non-Consolidated) Replace the EC site (Cooperation between EC sites and stores) →Enrichment of EC sites, use of marketplaces, promotion of promotions 5． Strengthening IT and DT (Data Technology) →(Non-Con
Slide 25: Purchases from individual customers (Non-Consolidated)
Purchases from individual customers(Non-Consolidated) Record amount of individual purchases through new store openings and various measures Amount of purchase from individual customers FY2018 FY2019 FY2020 Change YoY (Millions of yen) purchase center 18,009 20,109 23,164 ＋3,054 11５.2％ Home delivery
Slide 26: New Store: the purchasing center (Non-Consolidated)
New Store : the purchasing center (Non-Consolidated) Opening Opening 【 Purchase Center date date Sangenjaya-sakaedori】 Purchase Center Purchase Center Shinkoiwa-minamiguchi May 2019 Deli square imaike Feb 2020 （Katsushika-ku Tokyo） （Nagoya City, Aichi Prefecture） Purchase Center Purchase Center seng
Slide 27: Store Type (Non-Consolidated)
Store Type （ Non-Consolidated ） 35 stores Large-scale Nagoya Store，Meieki Store, 5 stores Ginza Store，Umeda Store, SHINJUKU Sale and purchase * Sales/Purchase Ladies casual clothing, Bags, small items, etc. Jewelry, precious metals, watches,bags,clothing,etc. 5stores Mid-scale Opening stores in larg
Slide 28: KOMEHYO SHINJUKU relocation completed
KOMEHYO SHINJUKU relocation completed A three-store system in the proximity of Shinjuku Station was completed, enhancing convenience for customers 【KOMEHYO SHINJUKU WOMEN ’20.6 Scheduled】 【Image】 27
Slide 29: EC OMO (Non-Consolidated)
EC OMO※(Non-Consolidated) Rapid increase in the use of "in-house EC" in March due to the influence of people refraining from going out Net sales No. of products (Millions of yen) FY2017 FY2018 FY2019 YoY sold YoY E-commerce-induced sales 7,594 8,119 7,827 96.4％ 105.4％ E-commerce-induced sales rate 2
Slide 30: Customer Management (Non-Consolidated)
Customer Management (Non-Consolidated) Integrated management of customer information , covering physical and online stores Card members(FY2020) No. YoY Total members 922,000 107.2% 【 Customer management 】 Management of visit history of card-holding Sales Online members, including store visit dates,
Slide 31: Sales to corporate customers: KOMEHYO Auction Distribution Value Expansion Trend
Sales to corporate customers KOMEHYO Auction Distribution Value Expansion Trend Trade volume No. of member YoY (Millions of yen) companies 971 FY2020 26,000 111.8％ ※29companies increased this term 【Transition of auction distribution amount for domestic corporations】 (100 millions of yen) 260 232 183
Slide 32: Talent Development (Non-Consolidated)
Talent Development (Non-Consolidated) Planned training for appraisers to strengthen purchasing Total No. of appraisers FY2020 367 persons YoY Change + 12 persons [KOMEHYO appraiser] Systematic development curriculum for appraisers Appraisers assess on the spot Market systems that allow inventory and
Slide 33: Talented person fixation degree (Non-Consolidated)
Talented person fixation degree (Non-Consolidated) Staff turnover remained low , improving the stability of the work force Turnover The No. of employees（Brand-Fashion) The No. of rate（％） Turnover rate employees 30 General regular workers(except part-time workers)(Ministry of Health,Laver and Welfare
Slide 34: Thai business
Thai business Opened the first overseas store under the trade name of "KOMEHYO," and launched a website 【KOMEHYO＠CENTRAL WORLD (Bangkok) 】 【Website】 33
Slide 35: China business
China business Beijing joint venture company was dissolved, but experience and resources are concentrated in Shanghai to strengthen the China business 【BEIJING HUAXIA KOMEHYO LIMITED】 Established in June 2017 [LuxStory] retail store opened in September 2018 Dissolved in December 2019 (Resolution) 【L
Slide 36: K-BRAND OFF (Acquired on December 3, 2019)
K-BRAND OFF (Acquired on December 3, 2019) Domestic business was profitable in the month of December - Injection of knowhow, governance, funds, etc. K-BRAND OFF BRAND OFF LIMITED 名流國際名品股份 (Japan) (HONG KONG) 有限公司(Taiwan) 6 directly managed stores, Retail store ７directly managed stores, 2 FC stores ３
Slide 37: Reference: Restructuring of reuse industry
Reference： Restructuring of reuse industry 【Used sales ranking2020 】 Used sales Used Brand Company (100 millions of yen) GEO HOLDINGS CORPORATION+OKURA 1,191 １ GEO HOLDINGS CORPORATION 1,066 ２ BOOK OFF GROUP HOLDINGS+aidect 799 ３ DAIKOKUYA(TICKET) 450 KOMEHYO+K-BRAND OFF 523 ４ 1 KOMEHYO 420 ５ 2 Valu
Slide 38: Tire and wheel business Initiatives
Tire and wheel business Initiatives FY2020 Target Results, etc. 1． Strengthening store profitability →Decrease in sales and profits mainly due *Stores specializing in used tires and wheels: to a warm winter and higher tire prices "U-ICHIBAN" →Used sales increased 181.8% YoY *Strengthen specialized s
Slide 39: Tire and Wheel New Stores
Tire and Wheel New Stores Opened reuse specialty store “U-ICHIBAN” with high profit margin 【Omiya Baipasu store ‘19.4 【Toyohashi store ‘19.5 Convert from craft】 Convert from craft 】 【Okazaki store 【Yokkaichi store ‘19.5 ‘19.6 New store】 【Kagamigahara store Convert from craft 】 ‘19.8 New store】 38
Slide 40: Tire and Wheel Store Type
Tire and Wheel Store Type 【New Tire and Wheel】 【Reuse Tire and Wheel】 ７ Stores 10 Stores ４Stores※ １Store※ ※Located in a craft store 39
Slide 41: Plan for the Fiscal Year Ending March 31, 2021 / Medium-term Management Plan
１．Measures to prevent the spread of the novel coronavirus P.02 ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2020 P.05 ３．Business status P.22 ４．Plan for the Fiscal Year Ending March 31, 2021 Medium-term Management Plan P.41 ５．Reference Information (Company Profile, etc.) P.45 4
Slide 42: Plan for FY Ending March 31, 2021: Disclosure when reasonably foreseeable
Plan for the Fiscal Year Ending March 31, 2021 Medium-term Management Plan Disclosure when reasonably foreseeable Promoting the use of the online store Launch an online auction Plan for the Fiscal Year Net sales →Reopening of stores and opening of Ending March 31, new stores by giving top priority t
Slide 43: Brand・Fashion Business
Brand・Fashion Business Aiming to increase GMV (Gross Merchandise Value) by ensuring appropriate profits １．Ensuring appropriate profits ・Controlling purchase and sales prices, reviewing the composition of high-profit margin merchandise, etc. → Ensuring an appropriate gross profit margin ・Efforts to r
Slide 44: Tire and wheel Business
Tire and wheel Business Strengthen profitability by strengthening used products and highly specialized sales channels １．Improving profit margins by reinforcing sales of used tires and wheels ・Stores specializing in used tires and wheels: "U-ICHIBAN" ２．Strengthening sales at specialized stores with s
Slide 45: Reference Information (Company Profile, etc.)
１．Measures to prevent the spread of the novel coronavirus P.02 ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2020 P.05 ３．Business status P.22 ４．Plan for the Fiscal Year Ending March 31, 2021 Medium-term Management Plan P.41 ５．Reference Information (Company Profile, etc.) P.45 4
Slide 46: Corporate Profile
Corporate Profile Company name KOMEHYO Co., Ltd. Established May 1979 Head Office 3-25-31 Osu, Naka-ku, Nagoya Representative President, Representative Director: Takuji Ishihara Capital 1,803 million yen No. of Consolidated: 944 Non-Consolidated: 535 (As of March 2020) employees Buying and selling u
Slide 47: Corporate History
Corporate History ●Opened Umeda Store, Shinjyuku Store ANNEX,Meieki Store ●Acquired Eve Corporation Co.,Ltd. ●Established Auto Parts KOMEHYO KK (currently AUTO PARTS JAPAN) ●Established KOMEHYO HONG KONG LIMITED ●Acquired CRAFT Co., Ltd. ●Established Product Center ●Established KOMEHYO Auction ●Open
Slide 48: Management philosophy
Management philosophy KOMEHYO GROUP 2s fl Ht OS MSRAIS ESP REY) RLBHISAM RES es tll Go RE MR- RMR - His <> @HIBE oo — BERN SPE<MSLOVUEMBBLEF — BETHACESPUDGSBBEOUET —. ZILIA L HMLO DU SHASASBTET — BRUEBRAbcTHSICAML, KBORMRCHRtEBBLEF es PRIEB cs YL-1-AZ*4BELTEERIBECBHERERTS RYE —a—ALI [E7BAM GAS LEK(I
Slide 49: Business system diagram
Business system diagram General customers, etc. Used and new product dealers, etc. Manufacturer, etc. Purchase by buying Purchasing and brokering Purchasing new Sale used and new products Sale used goods products 【KOMEHYO GROUP】 KOMEHYO Brand・Fashion business Brand Reuse Business Tire and Wheel busi
Slide 50: Shareholder return
Shareholder return Dividend changes Dividends (Yen) Dividend payout ratio(%) 40 Fiscal year-end dividend 100 Interim dividend 90 35 Payout ratio 80 30 16 70 (Schedule) 25 60 8 20 50 15 40 30 10 20 5 10 16 16 0 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY20