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

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.)

P.45

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, andopinions of KOMEHYO Co., Ltd. are forward-looking statements subject to various risks and uncertainties.
These statements are prepared based on assumptions of the management of KOMEHYO Co., Ltd. using currently availableinformation.
Actual results may differ significantly from forecasts due to a variety of factors; therefore, investors should not place undue
reliance upon them.
In addition, this document is not intended to solicit investments. Investors should make investment decisions at their own
discretion.

1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 fromFriday, April 17
Partial postponement of the opening of KOMEHYOSHINJUKU MOMEN and purchase centers【Online store】 Open for business(KOMEHYO Auction)

April：Cancellation of the second half of the event
May：Scheduled to launch an online auction【Real】 Partly canceled in April【Live net auction】 Open for business【store】 Temporary shutdown from Wednesday,
April 27
【Online store】 Open for business2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】
Customers

・Online store : Open for business・Home delivery Purchasing：Open for business(Non-Consolidated)

Suppliers

・Scheduled to launch an online auction
・Shortening the payment period for purchase fromcorporations

employees

・In principle, all employees’ attendance at work has
been suspended（Only some employees come to work, depending on
the type of work they perform）
・Management and planning departments are
telecommuting
・Specialized training curriculum on the web forappraisers
・Payment of leave allowance to employees and parttimers

3

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

FY 2020 Financial Summary【Performance Highlights】 Net sales (consolidated/non-consolidated) and the amount ofpurchase 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

31.0％

Net income

26.2％

Purchases from individualcustomers

114.7％Net income attributable toowners of parent－【Business Topics】
Brand・Fashion business
KOMEHYOSHINJUKU,
eight purchasecenters, and asales store inBangkok,
Thailand opened

Expansionof sales tocorporate
customers

Tire and Wheel business
Acquired
K-BRAND OFF
Co.,Ltd and twooverseas
subsidiaries

Opening of five
Reuse specialty
shops,“U-ICHIBAN”(includingconvertedstores)

Acquired
Four by fourengineering
service Co.,Ltd5

Economic Trend
The recent consumption tax hike, the novel coronavirus, etc. have had a major impact
Net sales
YoY (%)

200

Department store(fine arts/jewelry/precious metals)
KOMEHYO net sales(non-consolidated)
Nikkei Stock Average(monthly closing price)

the novel coronavirus

Stock Price（yen）

tax hike

24,000150

19,00010010050

FY2020(Source：JAPAN DEPARTMENT STORES ASSOCIATION website)

14,0006Overview of Income Statement（ Consolidated ）(Millions of yen)

FY2018FY2019FY2020ChangeYoYNet sales

45,49750,96057,510＋6,550112.9％

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＋2,328119.5％

Operating income

1,625

1,860

297

△1,562

16.0％

Ordinary income

1,610

1,826

9△1,8170.5％

Net income attributableto owners of parent

1,0731,009△234△1,243－7

Overview of Income Statement（ Non-Consolidated ）(Millions of yen)

FY2018FY2019FY2020ChangeYoY

Net sales

39,68244,391

48,307＋3,915108.8％

Gross profit

10,86911,55911,564＋4100.0％

Gross profit
margin

27.4％

26.0％

23.9％

△2.1pt－SG&A expenses

9,716

10,042

11,093＋1,051110.5％

Operating income

1,153

1,517470△1,04731.0％

Ordinary income

1,256

1,524

458

△1,06530.1％

Net income

895

974254

△719

26.2％

8Net sales(Consolidated)
Net sales(Millions of yen)

Brand Fashion

Tire and Wheel

Others57,51050,96040,212

43,19945,90345,497

40,13434,368FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY20209Profit Margin Trend(Consolidated)（％）

3530.930

Gross profit margin
Operating income margin
31.4
30.5
28.5

SG&A expenses to sales ratio

27.8

28.5

27.1

25.3

2520

24.8

25.7

23.9

23.2

7.5

7.2

24.9

22.4

23.4

24.8

15
10

6.1

6.1
2.15

3.6

3.7
0.5

0

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY202010SG&A expenses(Consolidated)(Millions of yen)

Selling expenses

14,000

Personal expenses
Administrative expenses

12,00010,00014,265

9,627

11,342

10,038

10,271

10,312FY2015FY2016FY2017

11,936

8,518

8,000

6,000

4,000

2,0000FY2013

FY2014FY2018FY2019FY202011

Operating Income(Consolidated)
Operating Income(Millions of yen)

2,999

3,100
2,800

Brand Fashion

Tire and Wheel

OthersOperating income margin

3,129
2,789

tax hike, the novel
coronavirus, etc. have
had a major impact

2,103

2,500
2,200

7.5

1,900

1,600

Operating IncomeMargin (%)

1,860

7.26.1

1,625

6.1

975

1,300832

1,000

3.6700297

2.1400100△ 20033.7

10.5

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020△112

Ordinary income/Net income attributableto owners of parent(Consolidated)(Millions of yen)

Ordinary income

Net income attributableto owners of parent

4,000
3,500

2,988

2,742

3,000

2,500

2,096

1,834

2,000
1,500

tax hike, the novel
coronavirus, etc. have
had a major impact

3,162

2,040
1,696

1,610

1,251

1,073
815

1,000

1,826

1,009

355500

9 △ 2340△ 500

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY202013

ROA･ROE(Consolidated)
ROA

（％）

13.7
10.7

12.9

ROE

13.2

tax hike, the novel
coronavirus, etc. have
had a major impact

11.1

12.8

9.7

9.7

6.1
3.3

5.8

6.3

5.2
0.0

2.0

△ 1.2
FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY202014

Gross Merchandise Value（ Consolidated ）Increased 10.0 billion yen through an increase in purchase from individual customers and theconversion of K-Brand Off into a group company, etc.

Gross Merchandise Value (100 millions of yen)648

FY2019748

FY2020

GMV is calculated simply by adding and subtracting sales and volume information at the KOMEHYO auction based on consolidated sales.

15

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△2,3281,860

FY2019

Increase in administrative expenses due tothe land rent and building rent for new store
openings and fees for acquisition ofK-Brand Off Co., Ltd., etc.
△1,192
Increase in personnel expenses due tobusiness expansion△780
Increase in sales expenses such asadvertising expenses△356

Operating income（△1,562）297

FY202016Ordinary income decrease factor（ Consolidated ）Profit decreased due to increase in non-operating expenses(Millions of yen)

297

45

△333

Share of loss of entities accounted
for using the equity method,
including the closure andliquidation of Beijing joint venturecompany△100Rent prior to the opening ofKOMEHYO SHINJUKU WOMEN△86
Provision of allowance for doubtful
accounts related to K-Brand Off△849
FY2020 Operating income

Non-operating income

Non-operating expenses

FY2020 Ordinary income

17Overview of Balance Sheet(Consolidated) Surge in current liabilities mainly due to turning K-Brand OFF

into a group company
Consolidated
Total assets
30,507

Total assets
35,611
Cash anddeposits

Cash and

6,440

Liabilities andNet Assets
30,507

Liabilities andNet Assets
35,611
Current

Current

Liabilities

deposits

Liabilities

12,239

5,487

6,528

Products
Products

14,884Non-current
liabilities 4,178

Non-Consolidated
Total assets
26,415

Total assets
28,668Cash and deposits

deposits2,859

Non-current

11,530Liabilities andNet Assets
28,668Cash and2,776

liabilities 4,181

Liabilities andNet Assets
26,415(Millions of yen)

4,048

Products
Products

Current Liabilities

Current Liabilities
6,778

Non-current

Non-current

liabilities 4,035

liabilities 3,664

5,662

Net assets

Net assets

18,331

18,226FY2019FY202010,674

9,967

Other current

Other current

assets3,397

assets4,124

Non-current

Non-current

assetsOther current

Other current
assetsNet assets

Net assets

assets3,115

19,80019,189Non-current

Non-current

assetsassetsassets

10,092

10,161

10,5559,471

FY2019FY2020FY2019FY2020FY2019FY202018

Statement of Cash Flows(Consolidated)
Net cash flow from operating activities was negative mainly due to an increase ininventories resulting from the conversion of K-Brand Off into a group company, etc.
Cash flows from operating activities
Cash flows from financing activities

Cash flows from investing activities
Cash and cash equivalents(Millions of yen)

7,330
4,769

4,257

6,086

3,886

2,8552,113

1,715536△ 777△ 1,091

1,651

1,447669505△ 1,393

△ 700

△ 107
△ 1,268△ 2,239

FY2016FY2017FY2018FY2019FY202019By Segment(Millions of yen)

FY2018FY2019FY2020ChangeYoY

Brand
FashionTire andWheel
Others

Net sales

40,61846,37753,886＋7,509116.2％

Operatingincome1,476

1,730424△1,305

24.6％

Operatingmargin

3.6％

3.7％

0.8％

△2.9pt－Net sales

4,787

4,507

3,544

△962

78.6％

Operatingincome

9595

△128

△224－

Operatingmargin

2.0％

2.1％

－－－

Net sales

14612289△3273.2％

Operatingincome53341△333.7％

Operatingmargin

36.6％

28.2％

1.4%

－－20

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

21

Brand･Fashion Initiatives 1
FY2020 Target

Results, etc.

1． Strengthening Individual Purchase*Promoting Alliance and Purchasing Events*Continue to open stores specializing inpurchasing→(Non-Consolidated) Amount of purchase fromindividual customers：Record high of 24.1 billion yen→(Non-Consolidated) Fifty or more purchase eventsat department stores, etc.
→(Non-Consolidated) Eight purchase centers opened

2． Strengthening the Corporate Business*Expanding GMV (total amount of distribution):
Focusing on KOMEHYO Auctions→Increase in GMV by 10.0 billion yen due to anincrease in the trading volume of KOMEHYO Auction
and the conversion of K-Brand Off into a groupcompany

3． Strengthen product management functions*Establish operations to ensure growth in
Global Value Volumes(total amount of distribution)→(Non-Consolidated) Preparation of manuals forproduct management operations

22

Brand･Fashion Initiatives 2
FY2020 Target
4． Strengthening the EC*Omni Channel(Cooperation between EC sites and stores)→Enrichment of EC sites, use of marketplaces,
promotion of promotions

Results, etc.
→(Non-Consolidated) Replace the EC site

5． Strengthening IT and DT (Data Technology)*Use of data obtained from GMV (total amount ofdistribution) and use of AI to determine
authenticity→(Non-Consolidated) Increase in the accumulation
and accuracy of information on counterfeits in linewith an increase in purchases
Switching of in-house groupware

6． Human resource development*Education for appraisers, education and training
for each level→(Non-Consolidated) 367 appraisers in operation
Nurturing candidates for managerial positions
through next-generation training

7． New business*Challenge to new businesses, including overseasbusinesses→Opened a sales store in Bangkok, Thailand

23

Purchases from individual
customers(Non-Consolidated)
Record amount of individual purchases through new store openings and various measures
Amount of purchasefrom individualcustomers(Millions of yen)

FY2018FY2019FY2020ChangeYoY

purchase center

18,00920,10923,164＋3,054

11５.2％

Home delivery
Purchasing

906957992＋34103.6％

18,916

21,06724,156＋3,089

114.7％

Total【Purchase event「KAITORI GO」】

24

New Store : the purchasing center(Non-Consolidated)
Openingdate

Opening
date

Purchase Center
Shinkoiwa-minamiguchi（Katsushika-ku Tokyo）

May 2019

Purchase Center
Deli square imaike（Nagoya City, Aichi Prefecture）

Feb 2020

Purchase Center
Gakugeidaigaku-nishiguchi（Meguro-ku Tokyo）

Jul 2019

Purchase Center sengawa（Chofu-City Tokyo）

Mar 2020

Purchase Center
Kokubunji-minamiguchi（Kokubunji-City Tokyo）

Sep 2019

Purchase Center Musashikoyama（Shinagawa-ku Tokyo）

May 2020(planed)Sep 2019

Purchase Center Motosumiyoshi（Kawasaki-City KanagawaPrefecture）

Purchase Center
Kamata-nishiguchi（Ota-ku Tokyo）
Purchase Center
Sangenjaya-sakaedori（Setagaya-ku Tokyo）
Purchase Center
Seijougakuenmae（Setagaya-ku Tokyo）

Nov 2019

Feb 2020

Purchase Center
HILL’S WALK Tokushige（Nagoya City, Aichi Prefecture）
Purchase Center
Kintetsu Yokkaichi（Yokkaichi-City Mie-Prefecture）

May 2020(planed)【 Purchase Center
Sangenjaya-sakaedori】【Purchase Center
Seijougakuenmae】

Jun 2020(planed)Jun 2020(planed)25

Store Type （ Non-Consolidated ）35 stores
Large-scale
Nagoya Store，Meieki Store,
Ginza Store，Umeda Store,
SHINJUKU
Sales/Purchase
Jewelry, precious metals,watches,bags,clothing,etc.

5 stores
Sale and purchase *Ladies casual clothing,Bags, small items, etc.

5storesMid-scaleOpening stores in large major cities
Sales/Purchase3stores

Small-scale
Opening stores in major cities
Sales/Purchase8stores

Purchasing Center
Opening stores in major cities

Purchase only

19stores3 stores
Sale and purchase *Clothing at a lower price point
Bags, small items, etc.
*Some stores only sell

Total 43 stores (’20.03)
26

KOMEHYO SHINJUKU relocation
completedA three-store system in the proximity of Shinjuku Station was completed,enhancing convenience for customers【KOMEHYO SHINJUKU WOMEN ’20.6 Scheduled】【Image】27

EC OMO※(Non-Consolidated)
Rapid increase in the use of "in-house EC" in Marchdue to the influence of people refraining from going out(Millions of yen)

FY2017FY2018FY2019Net sales
YoY

No. of products
sold YoY

E-commerce-inducedsales

7,594

8,119

7,82796.4％

105.4％

E-commerce-inducedsales rate

27.9％

29.3％

29.6％

－－※Online Merges with Offline※※EC Sales as a Percentage of Retail Sales【Online sales trend by channel】

KOMEHYO website【Percentage of online sales by channel (FY2020)】
Others
KOMEHYO109.3%
17.6%
97.9%
23.2%
website100%
Backorders
Others59.2%

Back orders

113.3%

134.6%

Decrease due to shortened business hours
and temporary shutdown

Jan 2020FebMarApr28

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
members, including store visit dates, stores
visited, products purchased, and amounts interms of used goods purchased from them

Sales
storeOnline
Store

Set up and provide events and privileges
tailored to customer usage and needs
Purchasing
CenterHome
delivery
Purchasing

29

Sales to corporate customers
KOMEHYO Auction Distribution Value Expansion Trend
Trade volume(Millions of yen)

FY202026,000【Transition of auction distribution amountfor domestic corporations】(100 millions of yen)

YoY
111.8％

No. of member
companies
971※29companies
increased this term

260

232
183

FY2018FY2019FY202030

Talent Development(Non-Consolidated)
Planned training for appraisers to strengthen purchasing
Total No. of appraisers

FY2020367 persons

YoY Change+ 12 persons[KOMEHYO appraiser]
Systematic development curriculum for appraisers
Appraisers assess on the spot
Market systems that allow inventory and distribution
to be monitored are supported.

31Talented person fixation degree(Non-Consolidated)
Staff turnover remained low , improving the stability of the work force
Turnoverrate（％）

The No. of employees（Brand-Fashion)
Turnover rate

30

General regular workers(except part-time workers)(Ministry of Health,Laver and Welfare)

The No. ofemployees

487
25

520

451

535

548

568

383
20
15

307
12.9

290
11.3

323
11.7

400

345

11.5

12.4

500

12.2

11.8

300
11.4

11.6

11.3
200

10

8.8

5100

5.8

5.0

3.6

0

10.3

11.3

12.3

13.3

5.2
14.3

3.2
15.3

4.5

3.9

4.6

16.3

17.3

18.3

5.8
3.0
19.3

0

20.3

32

Thai business
Opened the first overseas store under the trade name of "KOMEHYO,"and launched a website【KOMEHYO＠CENTRAL WORLD (Bangkok) 】【Website】

33

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)【Future direction of the China Business】
Experience, achievements and resources ofBeijing are concentrated on Shanghai
The China Business isreinforced by adopting
the knowhow of K-Brand OFFsubsidiaries【LuxStory 】
KOMEHYOSHANGHAILIMITED

KOMEHYO
HONG KONG
LIMITED

BRAND OFF
LIMITED(Taiwan)
BRAND OFF
LIMITED(HK)34

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(Japan)BRAND OFF LIMITED(HONG KONG)

名流國際名品股份有限公司(Taiwan)

Retail store[BRAND OFF]

７directly managed stores,
2 FC stores

6 directly managed stores,
2 FC stores(HONG KONG,THAI)

３directly managed stores

BtoB Auction business[Japan Brand Auction]

2 venues(Kanazawa and Ginza)－－【Representative director andother staff were dispatched】【Head Office (Kanazawa City,Ishikawa Prefecture 】【Japan Brand Auction 】

35

Reference：Restructuring of reuse industry【Used sales ranking2020 】
Used

Used sales

CompanyBrand(100 millions of yen)

１

GEO HOLDINGS CORPORATION+OKURAGEO HOLDINGS CORPORATION

1,191
1,066

２

BOOK OFF GROUP HOLDINGS+aidect

799

３

DAIKOKUYA(TICKET)

450

４1

KOMEHYO+K-BRAND OFF
KOMEHYO523
420

５2Valuence Holdings

378

83

DAIKOKUYA HOLDINGS20017６OKURA

12524９K-BRAND OFF103(The Reuse Business journal No.479)

36

Tire and wheel business Initiatives
FY2020 TargetResults, etc.

1． Strengthening store profitability*Stores specializing in used tires and wheels:"U-ICHIBAN"*Strengthen specialized sales channels:"URBAN OFF CRAFT", "EURO style Craft“→Decrease in sales and profits mainly due
to a warm winter and higher tire prices→Used sales increased 181.8% YoY
through the conversion of three storesfrom Craft to U-ICHIBAN, and the openingof two other new stores

2． Strengthening the EC*Expanding sales channels for e-commerce sites*Use of SNS (LINE, instagram)→Increase in the number of entries due tomore efficient entries

3． New Initiatives*Planning, R & D, manufacturing, etc.,of automotive parts→Planning and manufacturing of wheels
and suspensions at 4×4 Engineering
Service37

Tire and Wheel

New StoresOpened reuse specialty store “U-ICHIBAN” with high profit margin【Omiya Baipasu store ‘19.4
Convert from craft】【Yokkaichi store ‘19.5
Convert from craft 】【Toyohashi store ‘19.5
Convert from craft 】【Okazaki store‘19.6 New store】【Kagamigahara store‘19.8 New store】

38

Tire and Wheel【New Tire and Wheel】

Store Type
【Reuse Tire and Wheel】

７ Stores
10 Stores

４Stores※
１Store※※Located in a craft store

39

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.4540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
Net sales

SG&A
expenses→Reopening of stores and opening of
new stores by giving top priority tothe safety of customers andemployees

Restraint through cost control

Plan for theFiscal YearEnding March 31,
2021
Medium-termManagement
Plan
To be announced assoon as disclosure
becomes possible

41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 reduce fixed costs such as land rent and building rent, and improving the efficiency ofadvertising and other expenses → Ensuring appropriate operating income
２．Strengthening the EC
・Developing an online trading environment and implementing measures
３．Ensuring the volume of purchase from individual customers
・Strengthening alliances and implementing various promotional measures
・Promoting purchase from individual customers by opening new stores
４．Strengthening the Corporate Business・Strengthen and streamline the auction business by launching an online auction, etc.,
and promote business alliances
・Expansion of gross merchandise value (GMV) and acquisition of new customers
５．Strengthening IT and DT (Data Technology)
・Strengthening of IT, such as data technology (DT) and the determination of authenticity using AI
・Aim for the medium- to long-term growth of businesses based on these initiatives

42

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 sophisticated tastes
・URBAN OFF CRAFT, which proposes the customization of SUVs andfour-wheel-drive off-road vehicles
・EURO STYLE Craft, which proposes trends for imported European vehicles
・Securing used merchandise by capturing demand for trade-in and purchase
３．Review of sites in some areas
・Redeploying management resources to focus more on used merchandise
４．Focus on the planning and manufacturing of automobile parts
・Bring new products to the market43

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

44

Corporate Profile
Company name

KOMEHYO Co., Ltd.

EstablishedMay 1979

Head Office

3-25-31 Osu, Naka-ku, Nagoya

Representative
CapitalPresident, Representative Director: Takuji Ishihara
1,803 million yen

No. ofemployees

Consolidated: 944 Non-Consolidated: 535 (As of March 2020)

Businessactivities

Buying and selling used and new products including jewelry, precious metals, watches,bags, clothing, kimonos, cameras, and musical instruments, as well as real estateleasing

Fiscal year-end
StockMarch
Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)

45

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●Opened KOMEHYO Shoten,a 5-tsubo used clothing store, in Osu, Nagoya

1979

1987

1996

2000

2003

2004

2005

2011

2012

2013

2017

2018

2019

●Opened Ginza Store●Opened Shinjuku Store,the 2nd largest store after the Nagoya Store●Listed on the second section of the Tokyo
and Nagoya stock exchanges●Listed on JASDAQ●Opened Yurakucho Store●Opened Purchasing Center 3 Stores(full-scale expansion into Tokyo) ●Acquired Shellman Co.,Ltd.
●Expanded into Kansai●Established SAHA KOMEHYO COMPANY LIMITED(Shinsaibashi Store)●First Overseas Store Opened in Beijing, China●Started online sales(Closed in December 2019)●Expanded into Tokyo●Opened Shinjyuku WATCH store, Purchasing Center 6 Stores(Purchasing Center Dogenzaka)●Changed the Japanese spelling of its name●Acquired Four by four engineering service Co.,Ltd
from 米兵 to コメ兵●Retail store KOMEHYO opened in Bangkok, Thailand●Established KOMEHYO Co., Ltd.
●Acquired K-BRAND OFF Co.,Ltd and two overseas subsidiaries

46

Management philosophy

47

Business system diagram
General customers, etc.
Purchase by buying
used goods

Sale

Used and new product dealers, etc.
Purchasing and brokering
used and new products

Manufacturer, etc.
Purchasing newproducts

Sale

KOMEHYO【KOMEHYO GROUP】

Brand・Fashion business

Brand Reuse Business

KOMEHYO
Auction

KOMEHYO
HONG
KONG
LIMITED

EveCorporation

NJKP

KOMEHYOSHANGHAILIMITEDSAHA
KOMEHYOCOMPANY
LIMITED

B2Bオークション事業

Shellman

JV

Tire and Wheel business

KBRAND OFF

Craft

BRAND OFF
LIMITED

BRAND OFF
LIMITED(HONG KONG)(Taiwan)

AUTO
Parts
Japan

Four by fourEngineering
Services48

Shareholder return
Dividend changes
Dividends (Yen)

40
3530

Dividend payout ratio(%)

100

Fiscal year-end dividendInterim dividend
Payout ratio

9080
16(Schedule)257060820504015301020516160FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

10049