Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — FY2021 Earnings Presentation
52 slides from Komehyo's earnings presentation, May 2021
Slide 1: Earnings Results Briefing for the Fiscal Year Ended March 31, 2021
Earnings Results Briefing for the Fiscal Year Ended March 31, 2021 May 2021 Komehyo Holdings Co., Ltd. Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges) IR・PR Department TEL:+81-52-249-5366
Slide 2: Contents
Contents １．Company Profile, etc. ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2021 ３．Initiatives for the Fiscal Year Ended March 31, 2021 ４．Medium-term Management Plan ５．Shareholder return 2
Slide 3: Company Profile, etc.
１．Company Profile, etc. ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2021 ３．Initiatives for the Fiscal Year Ended March 31, 2021 ４．Medium-term Management Plan ５．Shareholder return 3
Slide 4: 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: 940 Non-cons
Slide 5: 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 6: 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 7: Business system diagram
Business system diagram purchase Sales Stores Stores General customers, etc. General customers, etc. Home delivery WEB Purchasing Event purchase New and used goods business used goods business 7
Slide 8: Overview of Financial Results
１．Company Profile, etc. ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2021 ３．Initiatives for the Fiscal Year Ended March 31, 2021 ４．Medium-term Management Plan ５．Shareholder return 8
Slide 9: FY 2021 Financial Summary
FY 2021 Financial Summary 【 Performance Highlights 】 FY2021 FY2021 Consolidated YoY Non-Consolidated YoY (Millions of yen) (Millions of yen) Net Sales 50,723 88.2％ Net Sales 15,144 － Operating income 590 － Operating income △493 － Net income attributable to △595 － Net income △1,262 － owners of parent
Slide 10: Economic Trend: New coronavirus etc. had a big impact
Economic Trend：New coronavirus etc. had a big impact Net sales YoY Stock Price (%) Department store(fine arts/jewelry/precious metals) （yen） 250 KOMEHYO net sales(non-consolidated) The COVID-19 30,000 Nikkei Stock Average(monthly closing price) 2nd wave 28,000 200 The COVID-19 26,000 1st wave The CO
Slide 11: FY 2021 Performance
FY 2021 Performance： Operating income and ordinary income increased despite a decrease in net sales (Millions of yen) FY2019 FY2020 FY2021 Change YoY Net sales 50,960 57,510 50,723 △6,787 88.2％ Gross profit 13,796 14,562 13,836 △726 95.0％ Gross profit 27.1％ 25.3％ 27.3％ +2.0pt － margin SG&A 11,936 14
Slide 12: FY 2021 quarterly results
FY 2021 quarterly results：Results were recovering, starting in the third quarter. FY2021 FY2021 FY2021 FY2021 (Millions of yen) YoY YoY YoY YoY 1Q 2Q 3Q 4Q Net sales 7,861 63.2％ 12,957 84.7％ 15,132 100.9％ 14,771 99.9％ Gross profit 1,888 55.2％ 3,385 92.2％ 4,472 115.3％ 4,090 114.0％ Gross profit △3.5p
Slide 13: Changes in net sales
Changes in net sales: Net sales fell, mainly due to the suspension of store operations in the first quarter 57,510 (Millions of yen) 50,960 50,723 Real estate leasing 45,903 45,497 Tire and Wheel 43,199 40,212 40,134 Brand・Fashion FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 13
Slide 14: Changes in profit ratios
Changes in profit ratios: Gross profit and operating margin rose Gross profit margin SG&A expenses to sales ratio （％） Operating income margin 31.4 30.5 28.5 27.8 28.5 27.1 27.3 25.3 25.7 26.1 24.9 24.8 23.9 23.2 23.4 22.4 7.5 7.2 6.1 3.6 3.7 2.1 0.5 1.2 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY20
Slide 15: Changes in expenses
Changes in expenses: Sales expenses such as advertising expenses were reduced 14,265 (Millions of yen) 13,245 11,936 11,342 10,038 10,271 10,312 9,627 Administrative expenses Personal expenses Selling expenses FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 15
Slide 16: Changes in Operating income
Changes in Operating income： Increased Operating Income Margin (%) 7.5 7.2 6.1 3.6 3.7 2,999 Operating Income 3,129 2.1 1.2 (Millions of yen) 2,789 0.5 1,860 1,625 832 590 Real estate leasing 297 Tire and Wheel Brand・Fashion FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 16
Slide 17: Changes in ordinary income / net income
Changes in ordinary income / net income: Net income declined partly due to the posting of extraordinary losses (Millions of yen) 3,162 2,988 2,742 2,040 1,834 1,826 1,696 ordinary 1,610 income Net income 1,073 1,009 attributable 815 to owners of 355 431 parent 9 △ 234 △ 595 FY2014 FY2015 FY2016 FY20
Slide 18: 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 18
Slide 19: Operating income increase and decrease factor
Operating income increase and decrease factor (Millions of yen) 297 Operating income（+293） 590 SG&A Expenses decrease +1,019 FY2020 FY2021 Sales amount decrease Increase in personnel expenses due to Gross Profit business expansion △217 △1,718 margin Decrease in General and administrative expenses du
Slide 20: Non-operating profit and loss
Non-operating profit and loss Foreign exchange losses △92 (Millions of yen) Interest expenses △56 42 pre-opening store rent △41 590 Share of loss of entities △1 △201 Other △10 Commission income 6 Business consignment fee 6 Insurance claim income 5 Dividend income 4 Other 20 431 FY2021 Operating Non-
Slide 21: Extraordinary income (loss)
固定資産の売却益 Extraordinary income (loss): Recorded the impairment of goodwill and unprofitable stores' non-current assets (Millions of yen) 4Q 3Q Impairment loss 614 2Q Loss due to temporary closure 549 Loss on retirement of fixed assets, etc. 72 1Q Loss on cancellation of lease contract 31 Extraordinar
Slide 22: Balance sheet
Balance sheet: Increased cash on hand for emergencies amid the COVID-19 pandemic Total assets Liabilities and Liabilities and Total assets 37,402 Net Assets Net Assets (Millions of yen) 35,611 35,611 37,402 Cash and deposits Cash and deposits Current Liabilities 6,440 10,538 Current Liabilities 13,3
Slide 23: Statement of Cash Flows
Statement of Cash Flows： Increased cash on hand for emergencies amid the COVID-19 pandemic 11,894 Cash and cash equivalents (Millions of yen) 7,330 Cash flows from operating 6,086 activities 4,769 3,886 4,379 Cash flows from financing activities 1,715 2,113 1,447 1,651 1,353 536 505 669 △ 700 △ 107
Slide 24: By Segment
By Segment： The Brand Fashion and Tire / Wheel businesses recorded positive operating income. (million of FY2021 FY2021 FY2021 FY2021 YoY YoY YoY YoY FY2021 YoY yen) 1Q 2Q 3Q 4Q Net sales 7,137 61.0％ 12,159 84.2％ 13,460 98.7％ 13,851 82.3％ 46,608 86.5％ Fashion Brand Operating income △823 － △46 － 770
Slide 25: Changes in gross merchandise value
Changes in gross merchandise value: Decreased mainly due to the suspension of auctions (100 millions of yen) KOMEHYO auction sales are mainly membership fees, and volume is not included in sales. Total distribution volume (GMV) 748 is a number that takes into 648 666 592 account the volume of the 51
Slide 26: Initiatives for the Fiscal Year Ended March 31, 2021
１．Company Profile, etc. ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2021 ３．Initiatives for the Fiscal Year Ended March 31, 2021 ４．Medium-term Management Plan ５．Shareholder return 26
Slide 27: KOMEHYO: Opening of purchase centers
KOMEHYO：Opening of 9 purchase centers Domestic 44 stores Overseas 3 stores Flagship stores Thailand (Bangkok) 5stores 2 stores Stores annexed with China (Shanghai) KOMEHYO@Central Bangna sales facilities (Bangkok, Thailand) 1 store 11 stores KOMEHYO Purchasing Center 名古屋本店本館 28 stores KOMEHYO Shangh
Slide 28: BRAND OFF: Opening of purchase centers
BRAND OFF：Opening of 5 purchase centers Domestic 11 stores Overseas 11 stores Flagship stores 2stores HONG KONG 7 stores Stores annexed with TAIWAN 3 stores sales facilities Thailand 1 stores 3 stores （Including FC 1 store） （Including FC 1 store） Purchasing Center Kanazawa Main Store 6 stores Total
Slide 29: WORM and Shellman Stores
WORM(sneakers)・Shellman(Antique clock, etc.)Stores Domestic 1 store Domestic 7 stores WORM TOKYO Ginza main store WORM TOKYO Ginza main store 29
Slide 30: Expanded the auction business through complementary efforts
Expanded the auction business through the complementary efforts of the two companies in terms of venues, etc. Number of registered Trade volume (Millions of yen) (Two companies total) YoY members (total for each auction) FY2021 24,876 83.6％ 2,755 【Transition of auction distribution amount for domest
Slide 31: Assessment of authenticity and model numbers through AI
Assessment of authenticity and model numbers through AI 【Assessment using AI authenticator】 【Purpose of development】 Formation of reuse market which customers can use with peace of mind ・Improvement of communication with customers ・Elimination of counterfeit goods ・Global expansion ・Quicker developm
Slide 32: Sustainability: Promote "relay use"
Sustainability: Promote "relay use" 【 Remade jewelry shop 】 【KOMEHYO Kobe-sannomiya store】 【KOMEHYO AOYAMA】 A shop opened for a limited time in Placement of antique furniture and use of Store annexed with a gallery of Mr. Mago environmentally conscious materials in Nagasaka, a sustainability-focused
Slide 33: Purchase from individual customers (KOMEHYO)
Purchase from individual customers （ KOMEHYO ） ：Opening of 9 purchase centers stores 52 43 34 36 21,067 24,156 (Millions of yen) 18,916 16,979 Home delivery 807 Purchasing 16,172 Purchase center FY2018 FY2019 FY2020 FY2021 Mosaic Mall Kohoku(Yokohama City) ‘20.10 Apita Town Inazawa(Inazawa City,Aich
Slide 34: EC (KOMEHYO): The rate of involvement in e-commerce
EC(KOMEHYO)：The rate of involvement in e-commerce increased 13 percentage points due to the COVID-19 pandemic. E-commerce-induced sales rate(%) 42.7 27.9 29.3 29.6 (Millions of yen) E-commerce- induced sales 7,594 8,119 7,827 7,649 (Millions of yen) FY2018 FY2019 FY2020 FY2021 ※E-commerce-induced sa
Slide 35: Customers' shopping experience (KOMEHYO)
Customers' shopping experience (KOMEHYO) Number of members：Over 1.2 million ※Including KOMEHYO online members ・Designed a service of providing customers with a shopping experience, starting with access to e-commerce websites ・Increased the frequency of purchases and the ratio of continuous use of th
Slide 36: Tire・Wheel: Strengthening of collaboration among group companies
Tire・Wheel： Strengthening of collaboration among group companies Customer information Planning and manufacturing New tire sales of wheels, etc. Wholesale 卸売 Used tire sales Trade-in Trade-in product product Inventory Inventory information information 36
Slide 37: Craft／U-ICHIBAN Stores
Craft／U-ICHIBAN Stores Domestic 10 stores Nakagawa store 4 stores with "URBAN OFF CRAFT" 1 store with " EURO STYLE Craft " Nagoya dome WEST store Domestic 4 stores (Closed: Kagamigahara store, Inazawa store, Okazaki store) Omiya Bypass Store 37
Slide 38: Tire・Wheel Initiatives
Tire・Wheel Initiatives 【Craft】 ・Strong sales of both summer and winter tires ・Greater-than-expected customer attraction through a sale held after total renovation of the Atsugi store 【Auto parts Japan】 ・Wide variety of tires and wheels traded in at Atsugi store CRAFT are sold at the U-ICHIBAN used s
Slide 39: Medium-term Management Plan
１．Company Profile, etc. ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2021 ３．Initiatives for the Fiscal Year Ended March 31, 2021 ４．Medium-term Management Plan ５．Shareholder return 39
Slide 40: Passing 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 upc
Slide 41: Japanese reuse market
Japanese reuse market 32,500 Market size trends and forecasts Business sentiment is unclear 30,000 (100 Millions of yen) 25,000 × 23,500 21,880 19,932 The number of people who use the 17,743 reuse service will continue to increase, 16,517 contributing to a rise in products' recycling ratios. Japanes
Slide 42: Medium-term management target (until FY2024)
Medium-term management target (until FY2024) FY2022 FY2023 FY2024 (Millions of yen) 1H Full year Full year Full year Net sales 26,800 60,000 65,000 70,000 Operating income 380 1,550 2,100 2,800 Operating 1.4％ 2.6％ 3.2% 4.0% profit margin Ordinary income 340 1,450 2,000 2,700 Net income attributable
Slide 43: Sales plan
Sales plan: Strengthen individual purchases and increase sales steadily 70,000 57,510 65,000 50,960 50,723 60,000 (Millions of yen) 45,903 45,497 43,199 40,212 40,134 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 43
Slide 44: Operating Profit Plan
Operating Profit Plan: Strengthen individual purchases and increase profitability Operating Income Margin (%) 7.5 7.2 6.1 3.6 3.7 4.0 3.2 3,129 2.6 Operating Income 2,999 2.1 (Millions of yen) 2,789 1.2 0.5 2,800 1,860 1,625 2,100 832 1,550 590 297 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY
Slide 45: Ordinary income/Net income Plan
Ordinary income/Net income Plan (Millions of yen) 3,162 2,988 2,742 Net income 2,700 attributable to owners of parent 2,040 2,000 1,834 1,826 1,800 1,696 1,610 1,450 1,300 1,073 Ordinary 1,009 income 1,000 815 355 431 9 △ 234 △ 595 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY202
Slide 46: Each group company demonstrates group synergies while continuing to grow
We will move into a phase in which each group company demonstrates group synergies while at the same time continues to grow. recovery Transformation growth Synergy KOMEHYO KOMEHYO Auction K-BRAND OFF Eve Corporation Brand・Fashion business Shellman Medium-term strategy KOMEHYO SHANGHAI LIMITED - We d
Slide 47: 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 48: Medium-term Management Plan: Brand・Fashion
Medium-term Management Plan : Brand・Fashion １．toC - Strengthening of the scheme of purchasing from individuals and retailing ・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 C
Slide 49: 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 50: Shareholder return
１．Company Profile, etc. ２．Overview of Financial Results for the Fiscal Year Ended March 31, 2021 ３．Initiatives for the Fiscal Year Ended March 31, 2021 ４．Medium-term Management Plan ５．Shareholder return 50
Slide 51: Shareholder return: Annual dividend planned at 24 yen
Shareholder return： Annual dividend for this term is 24 yen (planned) 92.4 Payout ratio(%) 36.2 30.6 34.7 24.8 29.3 19.4 26.3 23.0 16.6 15.5 15.0 Fiscal year-end dividend Interim dividend (planned) Dividends (Yen) 15 15 15 16 14 8 15 12 10 7 8 8 5 7 16 16 14 15 15 15 12 8 9 11 8 7 5 7 FY2009FY2010FY
Slide 52: 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