Komehyo Holdings Co., Ltd. · TSE:2780
Komehyo — H1 FY2022 Earnings Presentation
45 slides from Komehyo's earnings presentation, Nov 10, 2021
Slide 1: Earnings Results Briefing for the First Six Months of FY Ending March 31, 2022
Earnings Results Briefing for the First Six Months of the Fiscal Year Ending March 31, 2022 November 10, 2021 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 First Six Months of the Fiscal Year Ending March 31, 2022 ２．Initiatives for First Six Months of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 2
Slide 3: Contents
Contents １．Overview of Financial Results for First Six Months of the Fiscal Year Ending March 31, 2022 ２．Initiatives for First Six Months of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 3
Slide 4: FY 2022 2Q Financial Summary
FY 2022 2Q Financial Summary 【First six months results】 ・Both net sales and profits grew year on year. ・Strong individual purchases due to store openings and purchase events, etc and opened 14 Purchase centers. ・Corporate sales of the brand fashion business are contributing. ・Test introduction of AI
Slide 5: Economic Trend
Economic Trend The impact of COVID-19 remained. Stock Price （yen） 30,000 Nikkei Stock Average(monthly closing price) 20,000 Department store(fine arts/jewelry/precious metals)(10 millions of yen) 5,000 KOMEHYO Net sales(Millions of yen) 4,000 3,000 2,000 1,000 The COVID- The COVID- The COVID- The CO
Slide 6: Overview of income statement
Overview of income statement FY2022 FY2022 FY2022 (Millions of yen) YoY YoY YoY vs 1H plan 1Q 2Q 1H Net sales 14,162 180.1% 16,472 127.1% 30,635 147.1% 102.1% Gross profit 3,985 211.1% 4,215 124.5% 8,200 155.5% － Gross profit 28.1％ － 25.6％ － 26.8% － － margin SG&A expenses 3,476 126.5% 3,613 103.8% 7
Slide 7: Operating income increase and decrease factor
Operating income increase and decrease factor Purchases from individuals remained strong and net sales increased. Operating income grew significantly thanks to expense control and other efforts. Sales amount Personal expenses increased due to normal business operation. △416 increase Increase in gene
Slide 8: Changes in selling, general and administrative expenses
Changes in selling, general and administrative expenses SG&A ratios declined due to efficiency-oriented advertisements. SG&A expenses to sales ratio(%) 24.4 29.9 23.1 (Millions of yen) General and administrative expenses +272 Land rent increased due to normal business operation 2,774 2,629 (an extra
Slide 9: Non-operating income(loss) / Extraordinary income(loss)
Non-operating income(loss) / Extraordinary income(loss) Foreign exchange gain 18 Dividend income 13 Commission income 2 Other 8 Grant income 12 Gain on sale of fixed assets 4 (Millions of yen) Non-operating loss 28 Extraordinary loss 15 Non-operating income 43 Extraordinary income 17 Loss due to tem
Slide 10: Balance sheet overview
Balance sheet overview (Millions of yen) FY2021 FY2022 1H Change Current assets 27,286 26,984 △302 →Normalization of cash on hand as a Cash and deposits 10,538 7,706 △2,832 precaution against COVID-19 Products 12,649 15,064 +2,414 →Increased merchandise for year-end Other current assets 4,097 4,212
Slide 11: Statement of Cash Flows
Statement of Cash Flows Operating cash flow decreased partly due to an increase in inventories in preparation for a busy season in the second half of the fiscal year. 12,423 11,894 Cash and cash equivalents (Millions of yen) 9,249 7,330 6,216 Cash flows from 6,086 operating activities 4,964 4,178 4,
Slide 12: Overview by segment
Overview by segment In the Brand fashion business, both sales and profit increased thanks to improved 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 result of customized products. FY202
Slide 13: 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 14: Breakdown of consolidated Net sales (Retail / Overseas)
Breakdown of consolidated Net sales (Retail / Overseas) The hybrid business of retail and corporate sales, including auctions among companies, is balanced in the Group as a whole. The ratio of overseas is expected to increase as the focus shifts to global expansion. Overseas 11% Corporate FY2022 1H
Slide 15: Trends in Consolidated Net sales and Gross Profit Margin
Trends in Consolidated Net sales and Gross Profit Margin Seasonal factors behind the change in the gross profit margin include a tendency to increase in the third quarter, when the ratio of retail increases for the year-end shopping season, and a tendency to decrease in the second and fourth quarter
Slide 16: Purchase from individual customers (Group total)
Purchase from individual customers (Group total) The amount of individual purchases increased chiefly due to the opening of Komehyo’s purchasing centers, the holding of the KAITORI GO purchasing event, and an increase in the amount of purchases per customer. Number of stores 116 109 94 96 98 93 Purc
Slide 17: Changes in corporate auction trade volume
Changes in corporate auction trade volume The number of corporate members and trading volume increased thanks mainly to the strong results of JBA Auction (particularly the offline auctions held in Kanazawa). Number of registered 2,743 2,755 2,972 2,966 members 2,591 Trade volume 8,779 7,421 7,947 (M
Slide 18: EC(KOMEHYO)
EC(KOMEHYO) The e-commerce contribution ratio increased due to sales growth on Komehyo’s online store and catalog orders, mostly as a result of an increase in merchandise supplied to retail stores through improved purchase from individuals and enhancement of the e-commerce replacement and contact ce
Slide 19: Contents
Contents １．Overview of Financial Results for First Six Months of the Fiscal Year Ending March 31, 2022 ２．Initiatives for First Six Months of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 19
Slide 20: Stores: Group total 116 stores ('21.9)
Stores：Group total 116 stores（‘21.9) Brand Fashion Tire and Wheel Flagship stores ５ ２ 1 Sales Stores 1 6 2 10 4 Stores annexed with sales facilities 11 7 ２ Purchasing Center 41 ９ Overseas 3 12 Total 60 8 25 7 2 10 4 BRAND OFF WORM OSAKA Shellman GINZA store Craft NAKAGAWA store KANAZAWA store (July
Slide 21: Opened stores in FY2022 1H (KOMEHYO)
Opened stores in FY2022 1H（KOMEHYO） KOMEHYO opened 14 purchasing centers in the first half of the fiscal year and is making steady progress towards the goal of opening 30 stores in the fiscal year. West Japan East Japan KOMEHYO Purchasing Center KOMEHYO Purchasing Center 1Q HAKATA HANKYU 1Q HIBARIGA
Slide 22: 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 23: Human resources development (KOMEHYO)
Human resources development（KOMEHYO） They start with a type of merchandise in which they specialize and learn about other types, and the ratio of multi-skilled appraisers increased to two thirds of all appraisers. Appraiser skill composition In charge of 4 or more products In charge of 3 products In
Slide 24: Assessment of authenticity and model numbers through AI
Assessment of authenticity and model numbers through AI Test introduction of Assessment of authenticity and model numbers through AI which support the opening of purchasing centers - aim to introduce it to all stores this term Formation of reuse market which customers can use with peace of mind ・Imp
Slide 25: 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 Contact Center Reserve One to One Membership registration only customer with a phone service number Increase customer LTV CX including sale and purchase Live Strategy Commerce 25
Slide 26: Product distribution image (KOMEHYO)
Product distribution image（KOMEHYO) Purchase ・Suitable for ・Stores from Retail ・Stores retail individual 50％ ・Web ・Home delivery Purchasing customers KOMEHYO website 75％ KOMEHYO Others website ・Purchasing at events Product ・Purchasing at visited sites center Quality Market price ・Auction Distributio
Slide 27: 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 27
Slide 28: Corporate Auction (KOMEHYO Auction)
Corporate Auction（KOMEHYO Auction） Plans for member website renewal Four points 1. Visualize pricing process through bid-up system 2. Increase bidding efficiency through simultaneous bids using the shopping cart function （Logo changed in September 2021） 3. Facilitate the discovery of intended items
Slide 29: Oversea business (SAHA KOMEHYO (Thailand))
Oversea business（SAHA KOMEHYO (Thai land)） In Bangkok, Thailand, people are returning to stores as the pandemic subsides. Komehyo decided on a plan to increase stores from the current two-store structure with Komehyo at Central World and Komehyo at Central Bangna based on a strong partnership. 29
Slide 30: Tire and Wheel
Tire and Wheel Urban Off Craft specializing in 4WD vehicles and SUVs maintained strong sales by meeting demand for custom products such as wheels and supplies. The stores positioned aluminum wheels in a high-price range as products focused on sales activities and successfully met customers’ requests
Slide 31: Contents
Contents １．Overview of Financial Results for First Six Months of the Fiscal Year Ending March 31, 2022 ２．Initiatives for First Six Months of the Fiscal Year Ending March 31, 2022 ３．Reference Information (Company Profile, etc.) 31
Slide 32: 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: 945 Non-cons
Slide 33: 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 34: 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 upc
Slide 35: 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 36: Business system diagram
Business system diagram purchase Sales Stores Stores General customers, etc. General customers, etc. Home delivery Purchasing WEB Purchasing at events Purchasing at visited sites New and used goods business Used goods business 36
Slide 37: Sales plan
Sales plan 70,000 57,510 (Millions of yen) 63,200 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.
Slide 38: Operating Profit Plan
Operating Profit Plan Operating Income Margin (%) 7.5 7.2 6.1 3.6 3.7 4.0 3.5 2,999 3,129 2.1 2,789 1.2 0.5 Operating Income (Millions of yen) 2,800 1,860 1,625 2,190 832 590 297 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 ※ Changes were made to business plans for th
Slide 39: Ordinary income/Net income Plan
Ordinary income/Net income Plan Net income (Millions of yen) attributable to owners of 3,162 parent 2,988 Ordinary 2,742 2,700 income 2,040 2,110 1,834 1,826 1,800 1,696 1,610 1,470 1,073 1,009 815 355 431 9 △ 234 △ 595 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 ※ C
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 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 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 17.9 16.6 15.5 15.0 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