Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — 1H FY2019 Earnings Presentation
24 slides from Komehyo's earnings presentation, Nov 13, 2018
Slide 1: Earnings Results Briefing for the First Six Months of FY Ending March 2019
Earnings Results Briefing for the First Six Months of the Fiscal Year Ending March31, 2019 November13 2018 KOMEHYO Co., Ltd. Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges) Corporate Planning Department IR strategy group TEL:+81-52-249-5366 Note: This document is an English
Slide 2: Economic Trend
Economic Trend The economic environment remains on a moderate recovery path Net sales Stock Price YoY (%) Department store(fine arts/jewelry/precious metals) （yen） 140 KOMEHYO net sales(non-consolidated) 25,000 Nikkei Stock Average(monthly closing price) 130 23,000 120 21,000 110 100 100 19,000 90 1
Slide 3: Overview of Income Statement (Consolidated)
Overview of Income Statement （ Consolidated ） Consolidated FY2019 FY2019 FY2019 YoY YoY YoY (Millions of yen) 1Q 2Q 1H Net sales 11,271 114.4％ 12,051 110.4％ 23,323 112.3％ Gross profit 3,224 109.7％ 3,096 103.6％ 6,321 106.6％ Gross profit 28.6％ － 25.7％ － 27.1％ － margin SG&A expenses 2,894 104.6％ 2,937
Slide 4: Overview of Income Statement (Non-consolidated)
Overview of Income Statement （ Non-consolidated ） Non-consolidated FY2019 FY2019 FY2019 YoY YoY YoY (Millions of yen) 1Q 2Q 1H Net sales 9,934 114.5％ 10,789 109.4％ 20,724 111.8％ Gross profit 2,735 109.5％ 2,688 104.3％ 5,424 106.8％ Gross profit 27.5％ － 24.9％ － 26.2％ － margin SG&A expenses 2,445 101.8％
Slide 5: Operating income decrease factor (Consolidated)
Operating income decrease factor （ Consolidated ） The gross profit margin decreased 1.5 points, but operating income rose due to higher net sales. Gross profit Margin decrease Sales amount △338 increase ＋731 S,G&A Expenses increase △363 461 489 Personal expenses increase △123 Selling expenses increa
Slide 6: Profit Margin Trend
Profit Margin Trend The operating income margin (non-consolidated) is on a recovery path despite lower gross profit. Gross profit Gross profit margin Consolidated Operating margin Non-consolidated Operating SG&A expenses margin SG&A expenses margin Ratio (%) Gross profit margin (%) Ratio (%) Gross p
Slide 7: Overview of Balance Sheet
Overview of Balance Sheet Products increased due to favorable performance in purchasing (Millions of yen) (Millions of yen) Consolidated Non-consolidated Liabilities and Assets Assets Liabilities Liabilities and Net Assets 27,435 29,139 Net Assets 29,139 Assets Assets Liabilities and Net Cash and 27
Slide 8: Statement of Cash Flows
Statement of Cash Flows Cash flows from operating activities were negative due mainly to an increase in Products （百万円） Consolidated Cash flows from operating activities Cash flows from investing activities 4,964 4,769 4,271 4,327 3,886 2,048 1,715 1,748 1,533 536 505 △ 107 △ 248 △ 572 △ 564 △ 845 △
Slide 9: By Segment
By Segment Mainstay brand fashion business: significant increases in income and profit FY2019 FY2019 FY2019 (Millions of yen) YoY YoY YoY 1Q 2Q 1H Net sales 10,374 117.5％ 11,195 111.7％ 21,570 114.4％ Fashion Brand Operating income 343 218.3％ 203 64.6％ 546 115.7％ Operating margin 3.3％ － 1.8％ － 2.5％ －
Slide 10: FY2019 plan
FY2019 plan Increased profit and revenue are forecasted on both consolidated and non-consolidated bases Non- Consolidated FY2019 FY2019 YoY Consolidated YoY (Millions of yen) plan plan (Millions of yen) 43,00 Net sales 50,000 109.9% Net sales 108.4% 0 Operating Operating income 1,900 116.9% income 1
Slide 11: Purchases from individual customers
Purchases from individual customers The amount of purchases from individual customers is on the rise due to various measures to promote purchases. Amount of purchase from individual FY2017 1H FY2018 1H FY2019 1H YoY customers Purchasing 7,971 8,977 9,521 106.1％ Center Home delivery 412 429 489 114.2
Slide 12: E-commerce-induced sales
E-commerce-induced sales “Buy Online and Pick up in Store,” connecting brick-and-mortar stores with e-commerce sites, is on an upward trend (Millions of yen) FY2017 1H FY2018 1H FY2019 1H YoY E-commerce-induced sales 2,816 3,367 3,933 116.8％ E-commerce-induced sales rate 16.7％ 18.2％ 19.0% － 【 Percen
Slide 13: Store Type
Store Type A total of 32 stores are open across the nation 26 stores ５stores Large-scale Nagoya Store，Meieki Store, Shinjuku Store/ANNEX， Sales/Purchase ※ Ginza Store，Umeda Store Ladies casual Sales/Purchase Jewelry, precious metals, clothing, bags, watches,bags,clothing,etc. 6stores accessories Mid
Slide 14: Large stores
Large stores The first anniversary of the opening of three large stores Shinjyuku store Umeda store Meieki store ANNEX Opening date ‘17.2 ‘17.5 ‘17.5 Meieki4-8-24 Shibata2-2-1, Shinjyuku3-19-7 Nakamura-ku Location Kita-ku,Osaka city Shinjyuku-ku Nagoya city OSAKA UK･GATE 1-3F Ranzan BLD B1-5F MEI CL
Slide 15: The purchasing center was opened
The purchasing center was opened Location Opening date Purchasing Center Toyota city, Aichi ken ‘18.10 Toyota Purchasing Center Setagaya-ku,Tokyo to ‘18.11 Kyodo nodai-street Purchasing Center Kawasaki city, ‘18.12(planned) Mukogaoka-yuen Kanagawa ken 【KOMEHYO Purchasing Center Toyota】 14
Slide 16: Partial amendment of the Secondhand Articles Dealer Act
Partial amendment of the Secondhand Articles Dealer Act ~ allows temporary stores to purchase goods ＜Main points of deregulation＞ 1. Revision to units to be licensed：A place of business is permitted to be opened in other prefectures upon obtaining a license from the prefectural Public Safety Commiss
Slide 17: A New Store in Shinjyuku area
A New Store in Shinjyuku area (Planned to open in April 2019) Shinjyuku store Shinjyuku store New Store ANNEX X Jewelry, precious metals, men’s bags, watches, bags, 2018.11 men’s clothing, － lady’s clothing, Purchasing Center Purchasing Center 2019.04 Normal sales Normal sales New open (planned) 202
Slide 18: Group company(1) KOMEHYO Auction
Group company(1) KOMEHYO Auction Auctions are held twice a month Trade volume No. of member YoY (Millions of yen) companies FY2019 1H 11,876 132.2％ 901 【Auctions are held twice a month】 Since June 2018, we have been holding jewelry, watch and bag auctions twice a month to strengthen profitability 【K
Slide 19: Group company(2) KOMEHYO HONG KONG
Group company(2) KOMEHYO HONG KONG Reuse business in Hong Kong remains strong Net sales YoY FY2019 1H 381 154.1％ 【Events in Hong Kong 】 18
Slide 20: Beijing store Lux Story
Beijing store Lux Story 19
Slide 21: Group company(3) Eve Corporation
Group company(3) Eve Corporation Aim for synergy with KOMEHYO Apparel Business Head Company name Business activities Office Wholesale and retail of imported apparel,bags,and accessories; Operation of mail-order sites “Mike MUSEUM” Purchase and sales of shoes, etc. Eve Corporation Shibuya Operation o
Slide 22: Group company store WORM TOKYO
Group company store WORM TOKYO 21
Slide 23: Group company(4) Craft, Auto Parts Japan
Group company(4) Craft、Auto Parts Japan Opened reuse specialty shop “U-ICHIBAN” Company name Business activities Location Sale of passenger-car tires, aluminum CRAFT Co., Ltd. wheels, auto accessories, and parts Nakagawa-ku Import, sale, and purchase of auto parts Nagoya city AUTO PARTS Operation of
Slide 24: Group company store U-ICHIBAN
Group company store U-ICHIBAN 【U-ICHIBAN】Opend in April 2018, all tires and wheels are cleaned and reconditioned 23