Earnings Results
Briefing for the First Quarterof the Fiscal Year Ending March 31, 2025
August 13, 2024
Komehyo Holdings Co., Ltd.
Securities code: 2780 (Tokyo and Nagoya Stock Exchanges)
IR・PR Department TEL:+81-52-249-5366©Komehyo Holdings Co .,Ltd.

1

Contents
1.

Company introduction

2.

Earnings Results for the First Quarter of the Fiscal YearEnding March 31, 2025 and Revised Second Quarter and
Full-Year Earnings Forecasts and Dividends Forecasts

3. Segment overview for the First Quarter

P.3

P.12

P.27

of the Fiscal Year Ending March 31, 2025
4. Appendix

P.38©Komehyo Holdings Co .,Ltd.

2

1.

Company introduction©Komehyo Holdings Co .,Ltd.

3

From reuse to relay use We will inherit that "value".

VisionWe develop a concept ofenvironmentally andsocially conscious
recycling into a culture

MissionValue

We respect people for making
products, thank people forproviding products for use
by other people, and make people
who reuse such products happy,
and by doing so, create an
empathy-based recycling society.

We listen and empathize withwhat others say.
We value the importance oftalking.
We take action proactively.
We are not afraid of creatingchange.

Our unique concept is that ``things fulfill their mission only when they are passed down from person to person (relay) and pu t toeffective use (use).‘’ Our group does not simply provide products, but instead plays a role in proposing value to customers andco-creating value with them. We value the thoughts of the people who create things and the thoughts of those who connect
things ``for someone else,'' and make the next person who uses them smile, happy, and enriched. The entire group will work tocreate a society where such thoughts and efforts are commonplace.

https://komehyohds.com/mission_vision_value/©Komehyo Holdings Co .,Ltd.

4

Company Highlights (Consolidated)
A leading player in the reuse industry, which operates KOMEHYO, BRAND OFF, and other brands in Japan and other countries

Founding

1947

Net sales *1

119,459年

Individual purchase amount * 1

millions of yen（ Growth achieved in three consecutive terms ）peopleBreakdown : appraisers in the brand fashion business

Number of stores in Japan *2

228

Breakdown: 10 sales stores, 172 purchase centers,
and 46 stores annexed with purchase facilities*1 Results for the fiscal year ending March 2024

*2 As of the end of March 2024

92.0

699 people
Number of overseas
stores *2

21

storesmillions of yen

Talent retention rate *1

Number of employees *1

1,405

61,205Market share *3
Brands andjewelry

stores（ 5 countries/regions ）No.1*3 The Japan Journal of Remodeling Source: Reuse Market Databook 2023.

%

Number of operatingcompanies ※２

17companies©Komehyo Holdings Co .,Ltd.

5

Business Domains of Komehyo Holdings Group
Brand Fashion Business (General): Aim to be No. 1 in sales volume.
Secondary
distribution

Primary
distribution
Purchase

Product evaluation/commercialization

sale

General customers

Real store
Home delivery
purchase
Event purchaseOn-site purchase

Product center

In-house auction

New producthandling businessreuse business
Other company auction

reuse business

Inspection
maintenancecleaning
photo shootData
entry/management

General customers

Real store©Komehyo Holdings Co .,Ltd.

6

Business Domains of Komehyo Holdings Group
Brand Fashion Business (Specialized): Aim to be one-of-a-kind with core fans.
Secondary
distribution

Primary
distribution
Purchasesale

Product evaluation/commercialization

saleReal store

Generalcustomer

Home delivery purchase

Product
commercialization

Real StoreEC

Generalcustomer・Department
store
・Real store
・EC

GeneralcustomerOn-site purchaseoverseas

・ndependentwatchmaker・WatchmaisonDomestic
agency・Department
store
・Real store
・EC

Generalcustomer

GeneralcustomerReal store

Product
commercialization

Reuse
Business

Generalcustomer
Reuse
Business

Real store
Product
commercialization

Real Store
EC
live commerce

Generalcustomer
Reuse
Business©Komehyo Holdings Co .,Ltd.

7

Business Domains of Komehyo Holdings Group
Tire and Wheel Business

Secondary
distribution

Primary
distribution
production

sale

General customers

Maker

Reuse business

Domestic mass retailer

sale

Product
commercialization

General customers

Planning and development

production

Purchase

Overseas©Komehyo Holdings Co .,Ltd.

8

Medium-term management plan

Position of the Medium-term Management Plan
We aim to achieve sales of 250 billion yen by the 80th anniversary of the company's founding, which isthe final year of the Medium-term Management Plan, with a view to becoming the world's No. 1
company in sales of brand goods for reuse (net sales of 500 billion yen).

Medium-term Management Plan (rolling method)500
billion yen「Beyond the 80th year milestone」

FY2025－FY2028

No. 1

the world's
company
in sales of brand goods for reuse

80th anniversary

250
Achieved record profit for 3 consecutive years

KOMEHYO Shinjuku store (at the time)
opened in 2005 and contributed to growthFirst time in Tokyo. Proposed"RelayUse" in the previous year

100
billion yen

billion yen• Overseas sales ratio: 30%• CAGR：20％• Number of group stores:
420 stores

30
billion yen• Overseas sales ratio: 15%

10billion yen

1996

2007

2024

2028

future©Komehyo Holdings Co .,Ltd.

9

Medium-term management plan
Basic Policies for the Medium-term Management Plan "Beyond the 80th year milestone"
Strive to achieve business growth and higher social value under a policy based on the business environment and competitive
advantages.

1

Achieving business grow th
Increasing domestic and overseas market shares throughmulti-branding

Brand・
Fashionbusiness（BF）

Implementing measures based on the characteristics
of each business(1) Trading business (Japan and other countries)(2) Business that contributes to distribution(3) Business that contributes to market growthTire Wheelbusiness（TW）

2

Strengthen ability torespond to market
conditions

M＆A
strategies

Stable increase in sales and profit
Growth achieved by leveraging
the power of the Group3

Ad va n c i n gmanagement with anaw areness of capital
cost

Achieving ROE and
ROIC exceeding capital
cost

Area strategies

Deepening sustainable management
Contribution to a carbon-neutral society
Aggressive investment in human resources

Strengthening governance©Komehyo Holdings Co .,Ltd. 10

August 2024: Selected as a constituent of the JPX-Nikkei Mid- and Small-Cap Index

Selected for the first time as a constituent of the JPX-Nikkei Mid- and Small-Cap Index for
FY2024 (August 30, 2024 ~ August 28, 2025) calculated by JPX Research Institute, Inc. andJapan Keizai Shimbun, Inc.
▍What is the JPX-Nikkei Mid- and Small-Cap Index?
・Met the requirements of global investment standards, such as efficient use of capital and a management perspectivethat is conscious of investors. A new stock price index comprised of "companies that are highly attractive to investors"
・Common stocks mainly marketed in the Prime Market, Standard Market, and Growth Market of the Tokyo Stock
Exchange are eligible.
After screening based on trading price and market capitalization, in addition to quantitative index scoring, qualitative
factors are added.
Top 200 stocks will be selected
・The selected stocks for FY2024 were selected from among the many companies listed on the Prime Market, including
170 companies on the Prime Market, 21 companies on the Standard Market, and 9 companies on the Growth Market
For details, please refer to the website of the Japan Exchange Grouphttps://www.jpx.co.jp/markets/indices/jpx-nikkei400/index.html©Komehyo Holdings Co .,Ltd. 11

2.

Earnings Results for the First Quarter of
the Fiscal Year Ending March 31, 2025 andRevised Second Quarter and Full-Year Earnings
Forecasts and Dividends Forecasts©Komehyo Holdings Co .,Ltd. 12

Revision of results forecasts for the first half and the fiscal year ending March 31, 2024
Inventory secured in the first quarter is expected to contribute to net sales income in the second quarterand beyond.

1H
FY2025

FY2025(Millions of yen)

Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners ofparentForecasts released
previously

64,000

2,930

2,880

1,850

168.85

Revised forecasts
announced on thisoccasion

68,500

3,400

3,380

2,210

201.71

Change

4,500

470

500

360

ー

Rate of change

7.0%

16.0%

17.4%

19.5%

ー

Forecasts released
previously

140,000

8,000

7,900

5,200

474.61

Revised forecasts
announced on thisoccasion

144,500

8,470

8,400

5,560

507.47

Change

4,500

470

500

360

ー

Rate of change

3.2%

5.9%

6.3%

6.9%

ー

Basic earnings
per share(yen)©Komehyo Holdings Co .,Ltd. 13

Revision of Consolidated Earnings Forecast: Main Factors and Future Outlook
Due to the rapid fluctuations in the exchange rate, the market prices of various products were weak. Although the profit marg in will decline temporarily, the forecast for the second
quarter will be increased from an increase in sales and a decrease in profit. Profit margins are expected to recover from the third quarter onwards due to strong individual purchases,
and sales and profits are expected to be secured as planned.

Initial plan

1Q

2Q～

・Purchasing (individual purchase +corporate purchase): Compared to the previous fiscal year
Purchase 118.0%
The market price is relatively stable.
Each product is flat or moderately
rising・Individual purchases: 133.3% year-on-year
・Record results for a quarter
・New store openings are going well・ Pricing with a sharp balance while taking into account the auction
market・For the purpose of strengthening the product lineup of stores, we
actively carry out corporate purchases.

・Due to the impact of sudden exchange rate changes, the market prices of eachproduct remain weak.
Measures such as purchases and inventory price reviews are required in thesecond quarter.
・Including the current situation, individual purchases are expected to remain firm.
・Taking the time of market decline as an opportunity for corporate purchases, wewill continue to strengthen corporate purchases.

117.2% compared to the previous fiscal
year
・Retail sales ratio is expected to beabout 50%
・Tax-free sales remained at the level ofthe previous fiscal year in the fourth
quarter.

・Retail sales ratio: 53.0% year-on-year
・Duty-free sales: 199.0% year-on-year
・Sales to domestic customers also exceeded the previous year's
level.
・Sales of overseas subsidiaries were also strong.
・Due to strong individual purchases, corporate sales are also strong.

・Duty-free sales may be affected by foreign exchange rates and other factors,
and may settle down.
・Since we have been able to secure ample inventory as a source of funds, sales
are steadily promoting.
Prospects for transfer
・Control corporate sales according to the status of retail sales
・Risk inventory with low profit margins is cashed out early through corporate
sales.

・ The market price is stable
・Retail sales ratio improved, but there was a difference in market
trends compared to the first quarter of the previous year.
and an increase in the proportion of corporate purchases, resulting
in a year-on-year decline of 0.7pt
・ The volume of corporate auctions reached a record high in aquarter,
Contributes to the improvement of gross profit margin

・In the second quarter, due to price adjustments due to market fluctuations andan increase in the corporate sales ratio,
Gross margin is expected to decline temporarily
・Inventory adjustments are expected to be in line with the initial plan from thethird quarter onward.
・In the third quarter of the previous fiscal year, the gross profit margin declined
due to market fluctuations.
Gross margin is expected to be positive compared to the same period last year

Net
sales

Gross ・Assumed gross profit rate26.2%
profit ：First half ＋0.6pt
margin : Second half +2.4pt

・129.8% compared to the previous fiscal
・Actively invest in human resources necessary for domestic growthyear
and global expansion
Continued investment in growth,
expenses・ Generally controlled as planned
focusing on personnel costs

SG&A

・Continue to invest in human resources for growth, such as opening stores
・SG&A expenses are expected to remain as planned in the second quarter andbeyond.

©Komehyo Holdings Co .,Ltd. 14

Dividend forecast revision
Based on the dividend policy, the annual dividend forecast has been revised to 104 yen, an increase of 4 yen.
We will continue to focus on stable dividends and increasing dividends based on increased sales and profits.
New M edium - term M an ag emen t
Plan
（yen）

interim dividend(yen)141

Year-end dividend(yen)(forecast)
121

104

101

88

81

41

32

26
21

Strive for stable dividend
increases

60

61

24

12

32
16

1

2014.32010.3

Dividend
payoutratio(%)

24.8

…

15.5

…

2019.32020.32021.32022.32023.32024.32025.3

34.7

25.0

－

15.5

17.7

19.2

20.5

2026.32027.32028.3©Komehyo Holdings Co .,Ltd. 15

Medium-term management plan Quantitative Targets (FY2025 to FY2028)
We will continue to actively invest in the medium -term management plan to achieve business growth that exceeds market growth*

At this point, there is no change in the quantitative targets for the fiscal year ending March 2026 and beyond.

Medium-term management plan
FY202580th anniversary

FY2024（Millions of yen）
Net Sales（results）

Initial Plan

Plan foramendment on
August 13, 2024

FY2026FY2027（plan）（plan）FY2028（plan）

119,459

140,000

144,500

170,000

200,000

250,000

Operating income

7,452

8,000

8,470

9,800

12,00015,000Operating margin

6.2%

5.7%

5.9％

5.8%

6.0%

6.0%

Ordinary profit

7,479

7,900

8,400

Net income attributableto owners of parent

5,025

5,200

5,560

ROE

19.2%

17.1%

18.1％

18% or more

Capital adequacy ratio

44.4%

Approximately

Approximately

Approximately

458.7

45％
507

45%

EPS（yen）

45%
476

Dividend payout ratio

19.2%

21.1%

20.5％

CAGR

20%

Approximately

20%*Reuse market performance in 2021 Average annual growth rate 7.5% Reform Sangyo Shimbun “Reuse Market Data 2023”©Komehyo Holdings Co .,Ltd. 16

Summary of Consolidated Financial Results for the First Quarter of the Fiscal YearEnding March 2025
Fueled by abundant inventories due to strong individual purchases, retail sales were strong.
Gross profit increased due to an increase in gross profit that exceeded the plan, which absorbed the increase in
SG&A expenses and increased sales and profits compared to the same period of the previous year.

Individual purchase amount

18,017

millions of yen

Net sales

33,499millions of yen

Operating profit

2,137

millions of yen

YoY

YoY

YoY

133.3%

133.5%

123.9%

Individual purchase amount is
the highest ever in the quarter

Store inventory is substantial andretail is strong.

・The trading market of corporate auctions has
been flat to slightly higher and stable.

・Consolidated net sales were secured with measures tostrengthen corporate purchases, which were taken to
prepare for business expansion and the opening of
new stores, in addition to strong purchases fromindividuals.

Due to a larger-than-expected
increase in sales from a forecastof a decline in profits to anincrease in profits

・Recruitment and training of human resources
progressed as planned, and aggressive openingof new stores and strengthening promotions
contributed to an increase in the number ofcustomers visiting stores.
・In addition to the increase in the number ofcustomers, customers
Purchase price per capita is strong

・Retail sales, including sales to inbound tourists,
remained strong, capitalizing on・Flagship stores such as KOMEHYO SHIBUYA are
doing well
Migrated. Especially towed with watches and bags

・Gross profit increased due to increased
sales.
・While making necessary investments, suchas an increase in personnel costs associatedwith opening stores, SG&A expenses were
controlled as planned, and operating income
increased.

©Komehyo Holdings Co .,Ltd. 17

Performance
Net sales and profits were at record highs in the first quarter(Millions of yen)‘2023.3-1Q‘2024.3-1Q‘2025.3-1Q

YoY

ChangesPlan ratio*

Net sales

18,75325,09633,4998,402

133.5%

23.2%

Gross profit

4,717

6,592

8,579

1,987

130.1%

-

25.2%

26.3%

25.6%

▲0.7

-

-

SG&A expenses

3,978

4,867

6,442

1,574

132.3%-

Operating profit

739

1,724

2,137

412

123.9%

25.2%

3.9%

6.9%

6.4%

▲0.5

-

-

Ordinary profit

760

1,762

2,186

424

124.1%

26.0%

Net income attributableto owners of parent

519

1,183

1,412

228

119.3%

25.4%

Gross profit margin

Operating profit margin*Comparison of “Notice of Revision of Earnings Forecast” disclosed on August 13, 2024 to the full-year plan for the fiscal year ending March 2025

©Komehyo Holdings Co .,Ltd. 18

Analysis of consolidated operating income
Purchases remained strong, which resulted in ample products on offer at stores. Regarding net sales, both retailsales and corporate sales increased significantly. Growth in net sales offset the decline in the gross profit margin
and the increase in SG&A expenses, leading to increased profit.
（Millions of yen）

2,152

▲164

Net Sales• Purchasing is strong and inventory is substantial.
• Growth in both retail and corporate sales▲1,574• Ratio of retail sales to net sales increased by 4.8pt
compared to the previous fiscal year.

Gross profit

1,724

・Due to changes in market trends and an increase incorporate purchases, Decreased by 0.7pt from thesame period of the previous year

Increase in personnel costs such as salaries
and allowances△609
Increase in general administrative expenses
such as ground rent △552
Increase in selling expenses such as
advertising expenses

SG&A expenses△411• Increase in salary allowances due to base pay increases
and employee increases• Increase in ground rent, etc. due to opening stores

2024.3-1Q

Sales increase

Decrease in grossprofit margin

SG&A expenses
increase

2025.3-1Q• Increase in advertising expenses due to enhanced
promotions©Komehyo Holdings Co .,Ltd. 19

Trends in Consolidated Net Sales and Gross Profit Margin
In addition to strong individual purchases, we will strengthen corporate purchases to seize sales opportunities from customer s in Japanand overseas.
Although the gross profit margin declined year -on-year, the substantial product lineup at the store contributed to the increase in sales
35,318

Consolidated sales(Millions of yen)

31,37733,49927,66718,753Grossprofitmargin23,47523,41725,096

20,466

1Q

2Q

3Q

4Q

25.2%

25.0%

27.6%

26.7%

FY2023

1Q

2Q

3Q

26.3%

24.2%

24.9%

4Q
24.0%

FY20241Q
25.6%

FY2025・Varies depending on product composition ratio (fashion > jewelry/precious metals > bags > watches)

Factors behind fluctuations in gross profit ・Varies depending on the composition ratio of individual purchases and corporate purchases (individual purchases > corporate purchases)
・Varies depending on the composition ratio of retail and corporate sales (Retail > Corporate sales)©Komehyo Holdings Co .,Ltd. 20

Breakdown of consolidated Net sales (Retail / Overseas/Domestic tax -free sales)【Retail】The retail ratio increased due to the opening of sales stores and the increase in customers, and the ideal composition
ratio (retail: corporate = 50:50) was maintained.
【Overseas】 Overseas sales remained strong due to store openings and relocations in ASEAN countries and Taiwan.
【 Domestic tax-free sales】

Duty free sales performed well due to stores being kept well stocked.

Retail ratio

Corporatesales
Net sales※
47.0%
33,499Millions of yen（2025.3-1Q）

YoY＋4.8ptRetail53.0%

Overseas ratio

TaxOverseas*

free sale*

13.6%

18.4%

Net sales

33,499Millions of yen（2025.3-1Q）

Dometic
86.4%* "Corporate sales" includes auction fees.

Domestic tax-free sale ratio*The ratio of overseas business does not include domestic tax-free sales, etc.
*From March 2025-1Q, the overseas ratio will be calculated as (sales of overseas groupcompanies + overseas export sales) / consolidated net sales.
*According to the conventional formula (sales of overseas group companies/consolidated sales),the ratio of overseas sales is 10.2%.
*The figures have not been audited by an auditing firm, and there may be differences from thefigures at the time of final settlement.

Net sales

33,499Millions of yen（2025.3-1Q）

Taxation
81.6%*Calculated before eliminating internal transactions.
*Calculated from domestic tax-free sales/
consolidated sales from 2025.3-1Q*Conventional formula (Domestic tax-free sales/((Consolidated sales) -Overseas group company
sales)): 19.6%©Komehyo Holdings Co .,Ltd. 21

Breakdown of domestic duty-free sales
Just under 60% of the customers are from China (including Hong Kong), Taiwan, and Thailand, where KOMEHYO
and BRAND OFF have stores. They are younger than the domestic customer base, with the volume zone being
customers in their 30s to 40s.
Composition ratio by country/region

Percentage of purchasers by age group(2025.3-1Q)
32.7%

Others

27.1%

22.9%
China

18.8%

Thailand 3.2% Domestic duty-free 42.4%
sales
Philippines（2025.3-1Q）

12.1%

6.9%
Taiwn
11.9%

9.0%

America

12.7%

0.3%
10s

0.0%
20s

30s

40s

50s

60s

uncertain*Aggregated by issuing country/region from passports©Komehyo Holdings Co .,Ltd. 22

Purchase from individual customers (Group total)
Due to the continued opening of purchasing specialty stores and the growth of existing stores, the number ofcustomers and the purchase price per customer remained strong, and the year -on-year increase was 133.3%
Increase in purchasesof gold and bullion

Individual purchase amount（Millions of yen）

Balanced pricing in
response to market
fluctuations

18,017

17,666
15,465

14,54913,51911,052

1Q

11,74010,552

2Q

10,2683Q

FY2023

4Q

1Q

2Q

3Q

4Q

FY20241Q

FY2025* The individual purchase amount is the amount purchased from an individual customer through the following route.
・Purchasing at stores ・Purchasing at visited sites ・Purchasing at events (KOMEHYO)
・Purchasing using home delivery services KOMEHYO)©Komehyo Holdings Co .,Ltd. 23

Changes in selling, general and administrative expenses
In order to secure the human resources necessary for opening new stores, labor costs increased due to thestrengthening of recruitment and training. With the increase in sales, SG&A expenses were suppressed as planned,
and the SG&A ratio decreased
6,442(Millions of yen)

（YoY132.3％）

1,416

4,867
3,476

（YoY141.0％）

1,004
2,269

774

（YoY132.2％）

Selling

expenses
G&A
expenses

1,717

Personnel

1,456
2,755
1,746

2,146

expenses（YoY128.4％）

Selling expenses• Promotions for new store openings• Increased credit card fees due to increased
sales

G＆A

expenses・Ground rent associated with opening a newstore, increased software depreciation andamortization

Personnel expenses
・ Employee recruitment costs associated with

2023.3-1Q

2024.3-1Q

2025.3-1Q

21.2%

19.4%

19.2%

opening new stores, increase in salaryallowances, etc. due to base pay increases

SG&A expenses tosales ratio(%)©Komehyo Holdings Co .,Ltd. 24

Balance sheet overview
In addition to strong individual purchases, we strengthened corporate purchasing with the aim of expanding the scale of ourbusiness and strengthening our retail market to secure ample inventory.
Significant increase in inventories, which are a source of revenue expansion and are directly linked to growth.
In the reuse business, the quality and quantityof inventory, which is the source of sales, isimportant, and a large and fresh inventory is acompetitive advantage.

March 2024

June 2024

49,92660,40010,473

Cash and deposits

15,20817,9142,705

Inventories

24,35330,695

6,342

Inventories

Other current assets

10,364

11,791

1,426

Non-current assets

14,112

14,926813

Strong individual purchases and an increase ininventories, which are the source of sales, due tostrengthening corporate purchases

Assets64,03975,327

11,287

Liabilities

35,26945,346

10,077（Millions of yen）

Current assets

ChangeInterest-bearing
liabilities

27,73337,74810,014

Other liabilities

7,535

7,598

63

28,77029,9801,210

Net assets
Liabilities andnet Assets

Interest-bearing liabilities
Interest-bearing debt increased due to increase ininventories

Net assets
Increase in retained earnings, etc.

64,03975,327

11,287©Komehyo Holdings Co .,Ltd. 25

Inventory Turnover

BF business

Abundant inventory secured through individual purchases and corporate purchases is controlled while being aware of the reside nce
period and unrealized gains.The gross profit margin declined due to an increase in corporate purchases, but the inventory turnoverrate increased due to an increase in the speed of commercialization, and the crossover ratio increased.

Inventories(Millions of yen )29,8992023.3-1Q

2024.3-1Q

2025.3-1Q

Gross profit
margin

24.6%

26.0％

25.3%

inventory
turnover3.4turn over

3.5turn over

3.7turn over

84.2％

91.1%

94.9%

Uncalculated

Uncalculated

47Millions of yen

22,126
17,521

Cross-Ratio*22023.3-1Q

2024.3-1Q

2025.3-1Q

89.6days

83.6days

84.0days

Inventories
Write-downs*3

Inventory turnover period*1*1 Inventories /Net sales*2 An indicator that is emphasized within the group, calculated as gross profit margin x inventory turnover rate.
*3 Since the figures have not been audited by an audit firm, there may be discrepancies from the figures for the current fiscal year.

©Komehyo Holdings Co .,Ltd. 26

3.

Segment overview for the First Quarterof the Fiscal Year Ending March 31, 2025

©Komehyo Holdings Co .,Ltd. 27

Summary of financial results by segment
for the First Quarter of the Fiscal Year Ending March 31 2025
Brand fashion business（BF）

Tire and wheel business（TW）

Net sales

Operating income

Net sales

Operating loss

17,98632,377

2,106

1,111

3

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen（YoY133.3%）（YoY134.5%）（YoY125.1%）（YoY110.1%）

Individual purchaseamount（ー）Strong sales of new summer Tire, personalpurchase and sale of used products, and domestic
and overseas sales of in-house planned wheels

Purchase

Opened 13 purchasing center (KOMEHYO 11, BRAND OFF 2)
Opened 1 store Stores annexed with sales facilities
Due to the growth of existing stores and the opening of new stores, individual
purchases are strong.

Net Sales

Net sales

Fueled by abundant inventory due to strong individual purchases, retail andcorporate sales performed well, resulting in significant growth in sales.

Gross profit
marginOnline sales of new Tire with low profit margins
increased, and gross profit margin declined.

Gross profit
marginThe retail trade ratio increased due to the opening of dealerships and anincrease in the number of customers, but the gross profit margin declined due
to differences in market trends compared to the first quarter of the previous
year and an increase in the proportion of corporate purchases

SG&A
expenses

Due to the increase in web sales, salescommissions and other expenses increased,
resulting in a decrease in profit.

SG&A
expenses

Actively invest in human resources to expand business
SG&A expenses increased, but were controlled as planned* Due to the impact of foreign exchange conversion, etc., there is a difference from monthly sales.
©Komehyo Holdings Co .,Ltd. 28

Overview by segment
In the brand and fashion business, individual purchases and retail and corporate sales are strong.
In the Thailand Wheel business, the composition ratio of new Tire and Wheels in online sales increased(Millions of yen)

‘23.3-1Q‘24.3-1Q’25.3-1Q

ChangeYoY

Brand
FashionTire and wheel
Real estateleasing

Net sales

17,79424,07532,3778,301

134.5%

Operatingincome

730

1,683

2,106

423

125.1%

Operatingmargin

4.1%

7.0%

6.5%

▲0.5pt‐Net sales

947

1,009

1,111

101

110.1%

Operatingincome

2

2

▲3

▲6

‐

Operatingmargin

0.3%

0.2%

‐

‐

‐

Net sales

71

71

82

10

115.0%

Operatingincome

21

21

27

5

125.9%

Operatingmargin

30.3%

30.3%

33.2%

＋2.9pt‐©Komehyo Holdings Co .,Ltd. 29

Stores | 249stores in total for the Group (as of June 2024)
In the first quarter, the Group opened 16 stores, mainly specializing in purchasing.
Brand Fashion

flagshipstore

6

3

Sales Stores

1

Stores annexed withsales facilities

19 ( 1 )3

Purchasing Center

136 ( 11,-1 )

8(2)

6(2)

15

Total

168

57

*1 The figure in parentheses (

3
2

10

2

2

10

2

28

Overseas

BRAND OFF
KANAZAWA store

1
6

Franchised
purchasing center

Tire and wheel

Shellman
GINZA store) represents the increase during the first quarter.

7

WORM OSAKA

3

Craft NAKAGAWA store

SELBY OKACHIMACHI
store©Komehyo Holdings Co .,Ltd. 30

| Purchasing and sales status by route*1

BF business

Domestic retail gold prices remain high in terms of the composition of products purchased by individuals. As a result, jewelr y and precious
metals account for about 40%. Retail sales performed well due to an increase in the number of customers, and retail sales as a percentage ofsales increased by 5 percentage points.

Product center

PurcasePurchase from individual customers

68

Sale
Retail％YoY▲1pt

YoY＋5 pt

・Store・WEB（Own EC site,EC mall,live commerce）

Stores/Home delivery Purchasing/Purchasing at
events/Purchasing at visited sites

Corporate sales
Sales to reuse businesses
Composition
ratio*2

39％ 24％ 31％ 6％

YoY（＋3pt） （±0pt）（▲1pt）（▲2pt）

Corporate purchasing
Purchase from reuse businesses(used and new items)

32％
YoY＋1pt

Supplementing individual purchases
mainly to maintain store appeal*1 First quarter cumulative total for fiscal year ending March 2025

45％

The product center collects products
purchased from all over the country.
Authenticity checks are performedby experienced appraisers andmaintenance is carried out asnecessary.
Supply products to optimal sales
destinations while controllinginventory risk

*2 Composition ratio of each product to individual purchase amount55％
YoY▲5pt・Auction (in-house, other companies)
・Events, wholesale (domestic/overseas)・Live commerce
We sell products that are suitable forcorporations (antiques, unsuitable forretail, etc.), and products that have highinventory or high risk. It also helps
revitalize your own auctions.

©Komehyo Holdings Co .,Ltd. 31

| Status of retail sector

BF business

In Japan, we are taking on the challenge of new formats such as store size, store locations, and items handled.
Overseas, we opened our fifth store in Thailand and our first dealership in Singapore. Selling locally purchased
products to strengthen retail.

▍Domestic stores••▍Overseas stores

KOMEHYONagoya Honten BAG＋

KOMEHYO Nihonbashi Store(Nogoya city,Aichi)(Chuo Ward, Tokyo)

Opened a bag specialty store (KOMEHYO Nagoya Honten BAG+) thatsells bags and accessories with a slightly used feel, which werepreviously sold by corporations, at more affordable prices.
We also took on the challenge of opening a small-scale purchasing
store(KOMEHYO Nihonbashi Store).In September 2024, in Aichi
Prefecture, which is highly recognized, we plan to open a store in acommercial facility, "LaLaport Aichi Togo Store" (Togo Town, Aichi
District)

KOMEHYO The Mall Bangkapi Store（Thailand）

KOMEHYOSuntec City mall Store(Singapore)•

Opened two dealerships in Asia (Thailand and Singapore).

•

Company established in Malaysia in April 2024 and UnitedStates in July 2024.Consider sales channels according to theprogress of individual purchases©Komehyo Holdings Co .,Ltd. 32

| E-commerce-induced sales rate

BF business

Due to the increase in the number of customers and the unit price per person, it increased by 116.2% compared to the same per iodof the previous year. Due to an increase in the sales ratio of customers visiting Japan at sales outlets, the EC involvement rate*1
has remained at around 30%.
・October 2023 Introduced multilingual tools on our e-commerce site
・November 2023: Sales will begin on Mercari Shops, an e-commerce PF. A total of 8 mall listings are held in Japan and overseas

EcmallBack Orders

KOMEHYO website

3,448

3,621
3,068

3,064
2,512

2,586

2,619

2,640

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

43.6%

44.6%

38.0%

38.6%

38.0%

37.9%

36.2%

36.9%

30.8%

EC induced sales(Millions of yen) *2

2,197

E-commerceinduced sales rate

FY2023

FY2024FY2025*1 EC-related sales/retail sales*2 Sales that are the sum of sales from the company‘s own e-commerce site and e-commerce mall, and sales from customers purchasing products at stores via the company’s e-commerce site. Integration
with offline is essential for digital marketing strategies that leverage our strengths©Komehyo Holdings Co .,Ltd. 33

Improving Profitability startingwith Franchised Purchase Centers

BF business

Increase purchase volume by opening more franchised purchase centers and strengthen the flow of items to be sold on the compa nyoperated Japan Brand Auction (JBA). Increase JBA's GMV (trading volume) and improve profitability with auction fees.

▍Business model

Buyer

Our companySaler e u s eb u s i n e s s

SellerG e n e r a l
c u s t o m e r ssell

FC purchasespecialty store
Directly managed
store

Product
price/auction fee

Listing

An attractive platform with abundant listingsand support both face-to-face and online

Sale

買い手
r e u s eb u s i n e s s

G e n e r a l
c u s t o m e r s▍TAY TWO CO., LTD. joins the franchise• In June 2024, we signed a franchise agreement with Teitu Co., Ltd., which operates “used bookmarkets,” “sieves,” and “trading card parks” nationwide, for the operation of the brand reusebusiness.In July 2024, the first FC store will open based on the business alliance. While emphasizing
sustainable growth, we aim to expand into multiple stores.
• Strengthening sales to a major corporation that can operate multiple FC stores in the future"BRAND OFF Purchase Specialty Used Book Market Tsurumi Store (FC Store).
BRAND OFF is located in the existing "Used Book Market" store.

• After opening a store, while emphasizing sustainable growth, we will strengthen support to increase
the purchase price per store.
©Komehyo Holdings Co .,Ltd. 34

RECLO Inc. joins the group

BF business

On April 3, 2024, K-Brand Off Co., Ltd., our consolidated subsidiary, announced its acquisition of all shares in RECLO Inc., which operates
RECLO, an e-commerce site for reselling products of highly renowned brands.

▍Approach to alliances
Expand the scale and strengthen
competitiveness of existing businesses

Synergies of M&A and integration

high

•

Increasing the number of stores and expanding areasin the Brand Fashion business•

Enhancing purchase/sales channels (e -commerce,
visit s , home deliver y , cross -bor der , pawn)•

Operation of auctions•

Businesses and companies that contribute toimprovi ng added value and operationa l effici e nc y (DXof repair and value chain)•

Overse as compani es operati ng brand fashion
business

Acquisition of RECLO Co., Ltd. (April 2024)
Features of RECLO
・A strong base of individual customers at
Tmall, one of the largest e-commerce sites
in mainland China, among other strengths
・Strong online sales capabilities, which
are demonstrated mainly in cross-border ecommerce
・A wide range of customer touch points,
including purchases made incollaborations with other companies' ecommerce malls

Our aims

Exploring unexplored areas

low•

Businesses and companies with high affinity with thecliente le (alcohol i c beverages , antiques , paintings )・Strengthening our business portfolio
Inventory linkage with K-Brand Off and RECLO, aiming to increase
sales and profits by increasing the number of EC listings
・Towards improving corporate value
Enhance our influence in the Asian luxury market, which is
expected to expand in the future, and lead to further growth※ An absorption-type merger was completed on July 1, 2024, with K-Brand Off being the surviving company and RECLO Inc. being the disappearing company.
The various services previously provided by "RECLO" will remain unchanged in the brand name, and will continue to be provided by K-Brand Off Co., Ltd.

©Komehyo Holdings Co .,Ltd. 35

| Corporate auction GMV（volume）growth

BF business

Due to the increase in the number of member companies, JBA's Kanazawa venue real auction is particularly strong.

14,755

GMV volume（Million of yen）

13,785
12,780

10,255

9,854

1Q

2Q

3,280

3,409

10,346

10,334

3Q

4Q

3,573

FY2023

3,659

11,851

11,950

1Q

2Q

3,864

3Q

4,060

4,332

FY2024

4Q
4,522

1Q
4,757

Number ofregisteredmembers

FY2025©Komehyo Holdings Co .,Ltd. 36

| Overview of tire and wheel business

TW business

Strong sales of new summer Tire, private purchase and sale of used products, and domestic and overseas sales of in -house planned
wheels Gross profit margin declined due to an increase in online sales of new Tire, which has a low profit margin.

Craft
・Purchase/trade-in‐Second-hand purchases at stores are strong at
118% compared to the same period last year. Securehigh-quality genuine tires and wheels when installed
on a new car through trade-in.

・Sales-Summer Tires sales were steady at 120% yearon-year‐Actively hold custom events to improve the unit
price per customer

Strengthen in-store trade-ins and purchases

Auto parts japan
・Purchasing/corporate purchasing
The competitive environment for corporatepurchases has intensified. As a result, theamount of corporate purchases has decreased
by 92% compared to the same period last year.

・Sales

4×4 engineering service
・We are expanding the size of our main brandBradley series, which will lead to the developmentof new partners in Japan and overseas.
・Started direct transactions with overseas
partners. Aiming for further growth and expansion.

‐WEB sales of Tire and wheels increased 114% yearon-year for new products.
‐ The trend of selling tires individually continues dueto the price increase of aluminum wheels, resulting
in low profit margins

Increased number of items listed on EC mall due to improved sasage
efficiency

Forged 4WD wheel “BRADLEY FORGED Takumi”©Komehyo Holdings Co .,Ltd. 37

4. Appendix©Komehyo Holdings Co .,Ltd. 38

Appendix

1.

Company Profile

P.40

2.

Quantitative Targets of theMedium-Term Management Plan
and Outlook for the Initial Plan

P.51

3.

Initiatives of each brand

P.54©Komehyo Holdings Co .,Ltd. 39

Corporate Profile
Company name

Komehyo Holdings Co., Ltd.

EstablishedMay 1979

Head Office

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

Representative
CapitalNo. of employees

Business activities
Fiscal year-end
Stock※Transition to holding company system in October 2020

President, Representative Director: Takuji Ishihara
1,803 million yen
Consolidated: 1,536

Non-consolidated: 33 (As of June 2024)

Groupwide corporate planning, management and marketing, and real estate business

MarchTokyo and Nagoya Stock Exchanges (Securities code: 2780; Unit: 100 shares)©Komehyo Holdings Co .,Ltd. 40

Corporate Profile Business list
We operate three businesses: Brand Fashion, Tire and Wheel, and real estate leasing. We support "Relay Use," the handing down ofgoods from person to person and their effective utilization, both in Japan and other countries.
Consolidated sales for the fiscal
year ending March 2024

Brand
Fashion（BF）

119, 4591

millions of yen

Sales ratio

Business content

95.5%

Purchasing used goods fromindividuals and businesses that
handle used goods Offering a wide
range of products from popularused products to regular new
products

Main customers

Overseas sales ratio
Overseas※1

Domestic

90.2%

9.8%

119,459
Millions of yen− individual− Corporation

Tire and
Wheel
（TW)

4.2%

Purchasing and selling tires,
aluminum wheels, and automotive
accessories

Retail ratio
Corporate
sales※2

51.6%

Real estateleasing

0.3%

Leasing and management of stores,
leasing of stores within the Group

Retail48.4%

119,459
Millions of yen− Corporation*1 "Overseas" does not include domestic duty-free sales, etc. *2 Including auction fee©Komehyo Holdings Co .,Ltd. 41

Corporate Profile

RECLO Inc. joins the group
Establishment of KOMEHYO BRAND OFF ASIA LIMITED, AN IMPORTANT BASE
IN ASIA.
Established KOMEHYO MALAYSIA SDN.BHD.KOMEHYO USA inc.

History

2024

2023

2022
Transition to a holding company structure2020
4×4 Engineering Services Co., Ltd. becomes a group company.
K-Brand Off Co., Ltd. and others become group companies.
2019

Opened KOMEHYO GINZA and
KOMEHYO SHIBUYA

75th anniversary since founding
Transferred to the Tokyo Stock Exchange Standard
Market and Nagoya Stock Exchange Main Market
Selby Co., Ltd. becomes a group company.
Established KOMEHYO SINGAPORE PTE. LTD.

2018
Shellman Co., Ltd. becomes a group company.
Established a joint venture in Thailand.

2017
Founded in 1947, the company opened a 16.2㎡ second-hand clothing
store called "Komehyo Shoten" in Osu, Nagoya, Aichi Prefecture.

2013
2012
2011

2004
2003
2000

1979

KOMEHYO HONG KONG LIMITED is established.
Auto Parts KOMEHYO Co., Ltd. (now Auto Parts Japan) is established.

Craft Co., Ltd. becomes a group company. KOMEHYO
Auction Co., Ltd. is established.

Opened KOMEHYO GINZA Store
Listed on the Second Section of the Tokyo Stock Exchange andthe Second Section of the Nagoya Stock Exchange

IPO (JASDAQ)
Expanded into Kansai (Komehyo Shinsaibashi store) and started online sales

1996
1987

Eve Corporation Co., Ltd. becomes a group company.
米濱上海商貿有限公司 is established.

Expanding to Tokyo (Komehyo Purchase Center Dogenzaka)

Company name changed to "Komehyo Co., Ltd."
Established KOMEHYO Co., Ltd.
©Komehyo Holdings Co .,Ltd. 42

Corporate Profile Human Capital Data
In the relay use business model, the roles played by people are wide -ranging (knowledge, skills, expertise, speed, connections w ith
customers, etc.), and promoting the development and retention of human resources leads to improvements in business performanc e
and corporate value.

Talent retention rate ＊1

Number of consolidated full-time employees ＊2

1,405people
Ratio of female
managers ＊2

20.0

％

82.1

％

85

%

consolidated

38.2

%

41.0％ TW business5.7％

ToMo ＊3

Engagement score ＊1 ＊4

23.2

70(B-)

Full-time employee
All workers*4 Komehyo Co., Ltd.

73.9

%

50.6％ Part-time/fixed-term employee73.6％
Paid acquisition rate ＊1

61.4

Full-time employee
All workers*1 Results for the fiscal year ending March 2024 *2 As of the end of March 2024
*3 Abbreviation for Total Motivation, which quantifies the “overall motivation” that affects work performance.

百万円

Wage gap ratio ＊1

Female employee ratio ＊2

BF businessRate of male childcare
leave taken ＊1

92

Sales per full-time employee ＊1%

66.2％ Part-time/fixed-term employee78.3％©Komehyo Holdings Co .,Ltd. 43

Corporate Profile Business/service introduction |The main brand of Komehyo Holdings, which mainly sells and buys used brand products. Aiming to improve market
standards by creating "curiosity" among customers and society toward a seamless purchasing experience between
online and offline▍Store development▍Customer attributes by productJewelry

50s・Female

Watches

50s・Male

40s・Female

Bags
Fashion

30s・ Male and Female▍Changes in the number of members*2 composition ratio
・162 stores in Japan, 4 stores in Thailand, and 1 base in Singapore *1
・Sales outlets such as domestic flagship stores will be opened mainly in major
cities in Japan.
Purchasing specialty stores open stores along the way of customers' lives with thePurchase + EC
0.9%→0.9%

EC only
7.2%→8.3%

In-store + EC
0.7%→0.8%

concept of ``purchasing at safe, usual, and nearby locations.''

Purchase only
36.7%→38.4%

・All stores are directly managed, and appraisers who have undergone thecompany's certification system are in charge of purchasing.
・A department specializing in education systematizes the training process andIn-store only
43.4%→40.5%

Purchase +In-store
10.6%→10.3%

Use all
0.7%→0.8%

curriculum for appraisers.

We enable speedy store openings by producing efficient and stable humanresources.
＊1＊3

Only about 10% of people use buying and selling at the same time. Focus onbuilding relationships with customers through store openings and OMO *3
strategies, one-to-one customer service, and promote mutual use.

As of the end of March 2024 ＊2 Number of KOMEHYO membership card members UU Comparison of 2014 -2023 → 2014-2024
Abbreviation for online merge offline, which refers to the fusion of online (EC) and offline (store)©Komehyo Holdings Co .,Ltd. 44

Trends in purchase price per customer by product |The corporate trading price of each product was flat or slightly higher.
By handling multiple products in a well-balanced manner, we have been able to diversify the risk against market
fluctuations, and the unit price per individual customer has remained stable.

▍Trends for the 1Q of the fiscal year ending March 2025
Retail gold prices in Japan continue to rise,
and the market price is on an upward trend,
especially for retail products.Despite theimpact of the decline in diamond prices, theoverall unit price per buyer remained flat

Against the backdrop of rising overseas demand
due to the impact of foreign exchange rates, thepurchase price increased year-on-year. Mainly forretail-oriented products, the market price has
recovered to the same level as the previous year,
and the unit price per customer has been on an
upward trend recently.
Due to the strong performance of inbound thecorporate trading market is recovering and the unit
price per customer is rising. In particular, themarket price of popular products remained high. Asa reaction to the upward trend in the market price ofthe previous year, the unit price per customer inJune was lower than the previous year, but theoverall unit price per purchaser remained strong

Jewelry

Watches

Bags

Fashion

ALL

(YoY)
150%

100%

Since the previous fiscal year, we havestrategically continued to strengthen the purchaseof high-unit price products. As purchases continue
to be strong, there has been no significant change
in the unit price per purchaser.

©Komehyo Holdings Co .,Ltd. 45

Corporate Profile Business/service introduction ||Mainly sells, purchases, and quality used branded products. The tax -free ratio of sales is high, and the company has aparticular strength in selling bags. Operates the corporate auction “JBA” and contributes to improving profitability▍Store development▍Strengthen EC‘’BRAND OFF‘’ inventory is linked with the group‘’RECLO‘’ and ‘’MIKE MUSEUM‘’ to strengthen online
contact points.
※2

・Operates EC site “RECLO” that buys andsells used branded products

・42 stores in Japan and 15 stores overseas (Hong Kong, Taiwan, Shanghai, China)*1
・Headquartered in Kanazawa City, Ishikawa Prefecture, has a strong customer base mainly in
the Hokuriku region of Japan.

・We have a strong base of individual
customers on sites such as Tmall, the largest
e-commerce site in mainland China, and wehave strength in cross-border e-commerce.

Actively opening FC-style purchasing specialty stores to revitalize auctions
FC purchasing specialty stores account for approximately 70% of domestic stores
・Expanded overseas since 2008. We are expanding our store network by leveraging the highrecognition we have cultivated in Greater China and store management know-how.

Operates the e-commerce site "MIKE MUSEUM"
that sells new apparel, shoes, shoe careproducts, and accessories purchased
domestically and overseas.

＊1 Results for the fiscal year ending March 2024
＊2 On April 3, 2024, K-Brand Off Co., Ltd. acquired the shares of RECLO Co., Ltd. and became a group. An absorption-type merger is planned on July 1, 2024, with K-Brand off as the surviving company and RECLO as the dissolving company.

©Komehyo Holdings Co .,Ltd. 46

Corporate Profile Business/service introduction ||Operate corporate auctions “KOMEHYO Auction” and “Japan Brand Auction (JBA)” Increase GMV (volume) and
improve profitability through auction fees*1▍KOMEHYO Auction

Operated by KOMEHYO Auction Co., Ltd.

・Transition from real-life auctions to online auctions due to the coronavirus pandemic
・Using the inspection know-how cultivated by Komehyo HD, we support sellers and buyers.
・Bids from overseas are also possible
・Listings by other reuse businesses account for the majority, 70%*2

Products handled＊1▍Japan Brand Auction (JBA)・3 types of holding formats: hand auction, bidding, and online auction
・While the number of online events is increasing, real-life events are proving useful
and are performing well.
・Purchased items from BRAND OFF purchase specialty store (FC) are displayed,
Contribute to auction GMV

Event format

jewelry/watches/bags

OnlineBidding up method
Twice a month

ApparelOnlineBidding up method
Once a month

Commission income from both seller and buyer

Operated by K-Brand Off Co., Ltd.

Event format

JBA Kanazawa

RealBidding up method Once a month

JBA Tokyo

Real

Bidding method Once a month

JBA Live net

OnlineBidding up method Monday & Thursday＊2 As of the end of June 2024
©Komehyo Holdings Co .,Ltd. 47

Corporate Profile Business/service introduction |A brand specializing in products. Aim to be one-of-a-kind with core fans.

▍WORM・Purchasing and selling premium sneakers
・Opens 2 stores in Japan. Sneakerenthusiasts gather from home and abroad
・With the concept of “SNEAKER GAMEFROM JAPAN TO THE WORLD.”, we also
handle rare products that have a market valueof tens of millions of yen and are only
available in a few pairs in the world.

▍Shellman

・Consignment and sale of antique watches andjewelry, current watches made by independentwatchmakers, and original Shellman watches.
・Opens 7 stores, mainly in directly managed
stores and department stores.
Supported by watch collectors both
domestically and internationally▍SELBY・Purchasing and selling jewelry
・Opened two jewelry specialty stores.
We focus on rare stones and rare brands andare supported by jewelry enthusiasts both
domestically and internationally.
・Purchasing from corporations accounts for
90% of the total, and sales include in-store
sales, live commerce, and EC.
Inventory turnover is high in the channel.

＊As of the end of June 2024
©Komehyo Holdings Co .,Ltd. 48

Corporate Profile Business/service introduction|
A brand that handles new and used tires, wheels, etc. Integrated supply chain among three group companies▍Craft▍U-ICHIBAN/Auto Parts Japan・Purchasing and selling new tires andwheels・U-ICHIBAN
Purchase and sale of used tires and wheels

・We have a wide selection of high-end
wheels and coil over parts that are dress-up
items, and specialize in customizing
suspension parts.

・Auto Parts JapanWEB sales of used tires and wheels tradedin and purchased at Craft stores and new tires
and wheels purchased by corporations.

・Highly specialized staff will makesuggestions for tire selection, alignment,
real matching, etc. according to customer
requests.

▍4×4 engineering service

・ Comprehensive manufacturer of wheels
and suspensions. The main product is the"BRADLEY" series of wheels designed inhouse. A long-selling full-fledged 4WD wheel
・ Actively participates in off-road driving
events, outdoor activities, camping events, etc.
in Japan. Aiming to expand the fan base・Aiming to expand overseas sales channels,
overseas exclusive models will also be
released.

＊As of the end of June 2024
©Komehyo Holdings Co .,Ltd. 49

Corporate Profile

Global expansion| 21stores in total for the Group (as of June 2024)
Establish a system for local production for local consumption in each country/region and grasp the characteristics of the mar ket.
Aim to open stores in regions with large growth potential and build new channel.

Hong Kong

TaiwanShanghaiThailandSingapore

Malaysia

Company Name

KOMEHYO BRAND OFF＊4
ASIA LIMITED

名流國際名品股份有限公司

SAHA KOMEHYOCOMPANY LIMITEDKOMEHYO SINGAPORE
PTE. LTD.

KOMEHYO MALAYSIA
SDN.BHD.

Company
Establishment Year

2024年

2009年

2017年

2019年

2022年

2024年

Business RoutePurchase：
Purchase from individual
customers /Corporatepurchasing
sales：Retail /Corporate sales

Purchase：
Purchase from individual
customers /Corporatepurchasing
sales：Retail /Corporate sales

Purchase：
Purchase from individual
customers /Corporatepurchasing
sales：Retail /Corporate sales

Number of
executives andemployees

115

35

16

40

10

1

Sales
Stores

-

-

-

5(1)

1(1)

-

Storesannexedwithsales
facilities

10

4

1

-

-

-

Total

10

4

1

5

1

0

BrandsNumbe
r ofstores*3

米濱上海商貿有限公司*5

Purchase：Purchase fromindividual customers/Corporate purchasing ＊6
sales：Retail /Corporate
sales

Purchase：Purchase fromindividual customers ＊6
sales：Retail /Corporate
sales

‐

*1 The figure in parentheses ( ) represents the increase during the first quarter. *2 As of July 15, 2024, KOMEHYO USA inc. has already established a subsidiary, KOMEHYO USA inc., in the United States.
*3 Joined the group in 2019 *4 Established by absorbing and merging consolidated subsidiaries BRAND OFF LIMITED and KOMEHYO HONG KONG LIMITED.
*5 The store name will be changed to BRAND OFF in January 2024. *6 Purchased by individual at the office©Komehyo Holdings Co .,Ltd. 50

Medium-term management plan Quantitative Targets (FY2025 to FY2028)
We will continue to actively invest in the medium -term management plan to achieve business growth that exceeds market growth*

At this point, there is no change in the quantitative targets for the fiscal year ending March 2026 and beyond.

Medium-term management plan
FY202580th anniversary

FY2024（Millions of yen）
Net Sales（results）

Initial Plan

Plan foramendment on
August 13, 2024

FY2026FY2027（plan）（plan）FY2028（plan）

119,459

140,000

144,500

170,000

200,000

250,000

Operating income

7,452

8,000

8,470

9,800

12,00015,000Operating margin

6.2%

5.7%

5.9％

5.8%

6.0%

6.0%

Ordinary profit

7,479

7,900

8,400

Net income attributableto owners of parent

5,025

5,200

5,560

ROE

19.2%

17.1%

18.1％

18% or more

Capital adequacy ratio

44.4%

Approximately

Approximately

Approximately

458.7

45％
507

45%

EPS（yen）

45%
476

Dividend payout ratio

19.2%

21.1%

20.5％

CAGR

20%

Approximately

20%*Reuse market performance in 2021 Average annual growth rate 7.5% Reform Sangyo Shimbun “Reuse Market Data 2023”©Komehyo Holdings Co .,Ltd. 51

Initialplanoutlook

Rearrangement of given matters that will affect this fiscal year's performance
The brand reuse market is in an expansion phase both domestically and internationally. A business environment that allows
business growth by leveraging competitive advantages, provided that store opening properties and human resources recruitment
proceed as planned.

External environment/opportunity

Internal environment/approach・Demand for high-priced items remains strong, and the brand reusemarket is expected to continue growing.

・As the domestic and overseas markets are in an expansion phase, we needto increase our presence in the industry by expanding our sales share.

- Due to new entrants and store openings by competing companies,
purchase competition in each region and competition to acquire properties
for new store openings are intensifying. As the market expands, social
issues related to purchasing are also emerging, and reuse businesses are
required to be sound and transparent, as “purchasing” is subject to the
Act on Unfair Representations*.

・In addition to the growth of each group company and brand, we are moving
into a phase where we are increasing the driving force and collaboration of
our mainstay branded fashion business.

・Current duty-free sales are also strong. Inbound demand is expected toremain strong, assuming the yen does not trend towards an extreme
appreciation.
- Domestic reuse businesses are expanding overseas. The overseas reusemarket is energized by the increasing number of companies expanding
into Asia, mainly in Asia.
・In recent years, industry reorganization has become active. Weak
market conditions from the end of 2023 onward may lead to further
restructuring.

・In order to actively utilize corporate purchasing, it is necessary to increase
the speed of growth by working on new store formats and improving profits.
・As the business expands, we are hiring not only sales personnel such as
appraisers, but also personnel in indirect departments.
It is also necessary to expand. talent pool for next-generation management
and leadership, etc.
Always review forward-looking succession plans and development plans
Up・Strengthening global expansion is essential for future sustainable growth.
Continuous investment for the future, including promoting store openings,
strengthening cross-border e-commerce, and human resource development*April 18, 2024 Consumer Affairs Agency Public Notice “Regarding operational standards for public notices specifying premiums, etc.”©Komehyo Holdings Co .,Ltd. 52

Initial plan outlook

Market price forecast for main products for the fiscal year ending March 2025
The market trends of each product, which is the premise of this fiscal year's plan, are forecast as follows as of May 2024
Assuming that there are no sudden changes in the external environment, such as foreign exchange rates, each product is expect ed
to remain flat or rise moderately.

Jewelry
Domestic retail gold prices are expected to remain flat or risemoderately, remaining at record high levels. If the yen
appreciates in exchange rates, there is a possibility that there will
be a temporary decline.
The market price of diamonds is expected to recover gradually,
and the market price of melee diamonds (small stones) is
expected to remain stable.
As for branded jewelry, prices continue to rise for popular items
from popular brands that are in high retail demand and forvintage items that can only be obtained second-hand.

Bags
There are no major changes in the needs for branded items both inJapan and overseas, and the market prices of popular items andretail items are expected to gradually rise after bottoming out.
The impact on the used product market due to the increase in
primary distribution prices for each brand is expected to be limited.
Inbound demand is expected to remain strong, so there is apossibility that some items, especially vintage items, will rise in
price.

Watches
After bottoming out at the end of 2023, there will be a gradual
recovery trend for popular brands and popular items. The
upward trend is expected to continue in the future. Brands anditems that are not in high demand are expected to remain flat,and market prices are expected to differ depending on demand.
Sales prices of used products are expected to remain stable.
Inter-corporate transactions are strongly influenced byexchange rates, so if the yen becomes extremely strong, there isa possibility that the market price will decline.

FashionAs with the previous period, although there is someseasonality, there are no major market fluctuations overall,and market prices are controlled by model year andcondition.
Prices are expected to rise for highly rare items such as
some popular luxury brand fashion and vintage items.

©Komehyo Holdings Co .,Ltd. 53

Initiatives for the fiscal
year ending March 2025

Initiatives of each brand 1⃣

Continue to strengthen purchases mainly through new store openings, while bolstering retail through new store
openings and e-commerce, in Japan and other countries.
Opening a purchasespecialty store

Strengthening existingpurchasing channels

・Opening 30 to 40 purchasecenters, mainly in Tokyo,
Nagoya, and Osaka・Alliance-Department store-Financial institutions
・On-site purchase・Delivery purchase▍Purchase center

Aiming to increase purchases by 1.5 to 2
billion yen through new store openings

Opening a sales store
・New store opening-Nagoya main store BAG+
-Nihonbashi store-LaLa port Aichi Togo
- Considering openinga large store- Considering opening
an editorial store▍Sales store

Opening of small and medium-sized
retail stores with purchasing facilities

Strengthen global expansion
・Expansion of area and stores-Opening of 5th store in Thailand-Sales start in Singapore-Start purchasing in Malaysia-Strengthen cross-border EC▍Global expansion

Store expansion in ASEAN©Komehyo Holdings Co .,Ltd. 54

Initiatives for the fiscal
year ending March 2025

Initiatives of each brand ２⃣

BRAND OFF will strengthen domestic and overseas e-commerce sales by linking inventory with RECLO and MIKEMUSEUM. Aggressive new store openings will be continued overseas, mainly in Hong Kong and Taiwan.

Strengthening retail

Expansion of RECLO

・Strengthen CRM
・Incorporate global generation Z
・Strengthening in-house EC

・Promotion of PMI・Strengthen cross-border ecommerce, which is ourstrength, through inventory
collaboration

Cooperation with MIKEMUSEUM
・Strengthen sales on
domestic platforms throughinventory collaboration

Strengthen global expansion
・Strengthening cooperation
between Hong Kong andShanghai・New store openings in Hong
Kong and Taiwan‘’BRAND OFF‘’ inventory will be linked with ‘’RECLO‘’
and ‘’MIKE MUSEUM'' to strengthen online contact points.
▍Strengthening EC

Increase the number of areas throughinventory collaboration▍Retail expansion in Hong Kong

Continuing to open new stores backed
by high recognition▍Retail expansion in Taiwan

Maintained strong performance due
to relocation and store openings©Komehyo Holdings Co .,Ltd. 55

Initiatives for the fiscal
year ending March 2025

Initiatives of each brand 3⃣ Auction/Brands aiming to be the Only One

Leverage the strengths of each of the two auctions to expand the number of members and trading volume by capturing a wide ran geof needs Continue to refine the appeal of the brand to continue to be supported by fans as a unique brandCorporate auction・Acquisition of members in North
America・Increase in number of listings due toimproved productivity

・Opening a store specializingin FC purchase・Continuation of real events

Increase the number of members and trading volume throughcollaboration

Working to expand GMV and improve productivity

A brand aiming to be the Only One

・Strengthening online contact
points-EC site renewal-CRM using LINE
- Utilization of domestic andinternational SNS- Core system replacement

・Strengthening purchasing
domestically and overseas
・Interaction with overseas
independent watchmakers andsmall maisons・Construction of CRM
using LINE
・Improve the ability to
attract customers to yourown EC site

WORM

ShellmanStrengthening purchase and sales at stores

Differentiation with products from overseas
independent watchmakers©Komehyo Holdings Co .,Ltd. 56

Initiatives for the fiscal
year ending March 2025

Initiatives of each brand 4⃣⃣⃣⃣ Tire and wheel business
Aim for record sales of 10 billion yen by leveraging the characteristics of the three companies.

Product development and expansionof overseas sales channels
・New productdevelopment
・Product branding
・Acquisition of new
overseas partners

Expand sales and strengthen usedpurchasing
・Promotion of store opening plan
-New store opening-Change of business format
・Strengthening customer contact
points through events
・Strengthening trade-in

Product management and online
enhancement
・Strengthening usedpurchasing-Corporation-Individual
・Used goods store
development
・Strengthen online
sales

Hiring and training human resources to promote the tire and wheel business / Strengthening the supply chain within the group(core system/market system)

Promote products domestically andinternationally at exhibitions, etc.

Strengthen in-store sales
and trade-ins

Actively hold events that serve as
points of contact with customers©Komehyo Holdings Co .,Ltd. 57

Disclaimer
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 op inions 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 Holdings Co.,Ltd. using currently available i nformation.
Actual results may differ significantly from forecasts due to a variety of factors; therefore, investors should not place und ue reliance upon them.
In addition, this document is not intended to solicit investments. Investors should make investment decisions at their own di scretion.

IR contact
Komehyo Holdings Co.,Ltd.
IR・PR Department
Phone：+81-52-249-5366
E-mail：ir@komehyo.co.jp

This material was created by Komehyo Holdings Co., Ltd., and all rights to the content belong to us. Please refrain from any use beyond the scope permitted by law (copying, unauthorized reproduction, etc.).
©Komehyo Holdings Co .,Ltd. 58