Slide 1: Earnings Results Briefing for the First Six Months of FY Ending March 2017
Earnings Results Briefing for the First Six Months of the Fiscal Year Ending March 31, 2017 November14 2016 KOMEHYO Co., Ltd. Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges) The IR strategy department TEL +81-52-249-5366 Note: This document is an English translation of a doc
Slide 2: Overview of Income Statement (Consolidated)
Overview of Income Statement （ Consolidated ） Consolidated FY2017 YoY FY2017 YoY FY2017 YoY (Millions of yen) 1Q 2Q 1H Net sales 9,153 88.2％ 9,815 92.9％ 18,969 90.6％ Gross profit 2,539 79.8％ 2,565 86.4％ 5,104 83.0％ Gross profit 27.7% △3.0pt 26.1％ △2.0pt 26.9％ △2.5pt margin SG&A expenses 2,595 104.3％
Slide 3: Overview of Income Statement (Non-consolidated)
Overview of Income Statement （ Non-consolidated ） Non-consolidated FY2017 FY2017 FY2017 YoY YoY YoY (Millions of yen) 1Q 2Q 1H Net sales 8,052 86.9％ 8,835 92.5％ 16,888 89.7％ Gross profit 2,154 78.2％ 2,230 86.8％ 4,385 82.3％ Gross profit 26.8% △2.9pt 25.2％ △1.7pt 26.0% △2.3pt margin SG&A expenses 2,22
Slide 4: Operating income decrease factor
Operating income decrease factor （ Consolidated ） Operating Sales amount income 1,148 decrease (Millions of yen) △577 Gross profit Margin drop △466 Marketing cost General and Personal increase administrative expenses △119 expenses increase 0 increase △67 △17 △33 FY2016 FY2017 Operating income 1H (△1
Slide 5: Profit Margin Trend
Profit Margin Trend Gross profit margin decrease, SG&A expenses to sales ratio increase 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 profit margin (%) 35 SG&A expe
Slide 6: Overview of Balance Sheet
Overview of Balance Sheet Products 756millions of yen decrease(YoY) Consolidated (Millions of yen) Non-consolidated (Millions of yen) Assets Liabilities and Net Assets Assets Liabilities and Net Assets 25,926 26,209 25,926 26,209 Cash and 23,138 23,314 23,138 23,314 Current deposits 3,266 5,559 Cash
Slide 7: Statement of Cash Flows
Statement of Cash Flows Cash flows from operating activities were negative due mainly to an increase in inventories (Millions of yen) Consolidated FY2015 FY2016 1H FY2016 FY2017 1H 4,000 4,271 4,257 3,707 3,000 2,855 3,322 2,048 2,000 1,499 1,200 1,000 0 -293 -1,000 -575 -466 -516 -572 -777 -1,091 -
Slide 8: By Segment
By Segment Brand Fashion business’s operating income increased in 2Q (Millions FY2017 FY2017 FY2017 YoY YoY YoY of yen) 1Q 2Q １H Net sales 8,181 86.8％ 8,947 92.1％ 17,128 89.5％ Fashion Brand Operating income △39 － 19 4.0% △20 － Operating margin △0.5％ △7.8pt 0.2% △4.7pt △0.1％ △6.2pt Net sales 948 102.
Slide 9: FY2017 plan
FY2017 plan Non- Consolidated FY2017 consolidated FY2017 (Millions YoY YoY of yen) plan (Millions plan of yen) Net sales 41,500 90.4％ Net sales 36,000 88.8％ Operating Operating income 1,230 44.1％ income 850 35.0% Ordinary Operating income 1,230 44.9％ income 850 35.4% Net income attributable to owner
Slide 10: External Environment Economic Trend
External Environment Economic Trend Consumption trend was weak due to significant changes in the economic environment Net sales Stock Price YoY (%) Department store net sales(nationwide) KOMEHYO net sales(non-consolidated) (yen) Nikkei Stock Average(monthly closing price) 130 21,000 China shock 20,0
Slide 11: Purchase from Individual Customers
Purchase from Individual Customers Strengthened purchases through LINE De Satei* and other services Amount of purchase FY2017 FY2017 FY2017 from individual YoY YoY YoY 1Q 2Q １H customers Purchasing 4,067 86.7％ 3,903 92.8％ 7,971 89.6％ Center Home delivery 222 97.9％ 189 89.1％ 412 93.7％ Purchasing Tota
Slide 12: Online Sales
Online Sales The backorder system that connects stores with the website regained strength Net sales FY2017 YoY FY2017 YoY FY2017 YoY (Millions of yen) 1Q 2Q １H KOMEHYO website ※１ 360 85.3％ 375 83.9% 735 84.6％ Back orders ※２ 781 96.2％ 925 101.2% 1,707 98.8％ Other ※３ 182 115.8％ 190 98.8% 373 106.5％ To
Slide 13: Member's Card
Member’s Card Leveraging omni channel retailing, leading customers from online stores to physical stores and vice versa FY2017 1H No. YoY Total members 645,000 116.0% KOMEHYO apps App that can be used as a member card of KOMEHYO Co., Ltd. Outstanding points, purchasing history, selling history, KOME
Slide 14: Subsidiary① Brand Fashion Segment
Subsidiary① Brand Fashion Segment Sales to secondhand dealers in Japan and abroad KOMEHYO Auction Trade volume No. of member Frequency YoY (FY2017 1H) companies Jewelry, Monthly JPY8,400 watches, 95.6％ bags 3 days million 698 Monthly JPY140 Clothing 89.3% 1 day million KOMEHYO HONG KONG LIMITED KOME
Slide 15: Subsidiary② Tire and Wheel Segment
Subsidiary② Tire and Wheel Segment Both tires/wheels and parts remained flat year-on-year Net sales FY2017 (Millions YoY １H of yen) Tires/wheels 1,403 100.8％ 【Produce a wheel “AXEL Series” movie】 Parts 339 104.7％ 【Dress-up work example】 Others 48 133.2％ ↑Before Segment 1,792 102.2％ total After→ 14
Slide 16: Future tasks - Opening of New Stores (Umeda)
Future tasks -Opening of New Stores- ①A large store will be opened in Umeda in February 2017 KOMEHYO Umeda Store February 2017 (planned) (approx. 1,318m2) Building for planned store opening(１-３F) 15
Slide 17: Future tasks - Opening of New Stores (Nagoya-ekimae)
Future tasks -Opening of New Stores- ②A large store will be opened in Nagoya-ekimae in May 2017 KOMEHYO Nagoya-ekimae Store May 2017 (planned) (approx. 1,320m2) Building for planned store opening(１-2F) 16
Slide 18: Future tasks - Business Policy ①
Future tasks -Business Policy- ①Strengthen sales of products in a price range for which it is easier to secure gross profit 17
Slide 19: Future tasks - Business Policy ②
Future tasks -Business Policy- ②Set product categories whose sales are to be strengthened, and enhance customer service 18
Slide 20: Future tasks - Business Policy ③
Future tasks -Business Policy- ③Promote sales of remodeled jewelry products 19
Slide 21: Future tasks - Business Policy ④
Future tasks -Business Policy- ④Acquire customers we can telephone to provide information 20
Slide 22: Future tasks - Business Policy ⑤
Future tasks -Business Policy- ⑤Revitalize product supplies to, and movement between, stores (facilitate optimization of inventories) product supplies product supplies to stores to stores 【Products Center】 movement between stores 【Store】 【Store】 21
Slide 23: Future tasks - Business Policy ⑥
Future tasks -Business Policy- ⑥Strengthen purchases through Purchasing Service Trial Coupon and LINE De Satei 【 LINE De Satei 】 Responding to customer need that they want to know valuation first and are hesitant to ask for valuation only at stores 【Purchasing Service Trial Coupon 】 Coupons limited
Slide 24: Shareholder return
Shareholder return Dividend changes Dividend(yen) Payout ratio(％) 40 Fiscal year-end dividend Interim dividend Payout ratio 40 36.2 35 Forecast 35 30 30 30 28 29.3 26 30 25 15 20 23.0 19 25 24.8 15 19.4 20 16.6 10 16.0 15.5 15.0 15 15 5 13.2 0 10 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY20