Earnings Results
Briefing for the First Quarterof the Fiscal Year Ending
March 31, 2021
August 13,2020
KOMEHYO Co., Ltd.
Securities code: 2780
(Second Section, Tokyo and Nagoya Stock Exchanges)
Corporate Planning Department IR strategy group
Phone +81-52-249-5366

Business restart status ofeach company in KOMEHYO GROUP
Determine sales policies by giving top priority tothe safety of customers and employees
StoresChubu area・All Purchase center：May 18 reopened
Kansai area：May 22 reopened
Kanto area：May 26 reopened【Installed a splash prevention sheet】

Brand Fashion

Online store：Continued sales
KOMEHYO
AUCTOIN

Real：Stopped from the second half ofApril
Online auction：Started from May

K-BRAND OFF

Real：Stopped from May
Live net auction：Increased from once a week(AUCTION)

Tire and WheelStores(Kanazawa) to twice a week (Kanazawa/Ginza)

All stores：May 9 reopened
Online store：Continued sales【Temperature
measurement
at the store
entrance】

1

Measures to prevent the spread of
the novel coronavirus
April ~ Late May : temporary store shutdown/reduced opening hours、
online store sales, web-based education, and telecommuting【Measures taken during temporary store shutdown】
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 aretelecommuting
・Specialized training curriculum on the web forappraisers
・Payment of leave allowance to employees and parttimers2

FY 2021 1Q Financial Summary【Performance Highlights】 Significant decline in net sales and recording operating losses due to temporary store closures
Consolidated

FY2021 1Q(Millions of yen)

YoY

NonConsolidated(Millions of yen)

Net sales

5,321

47.9％

FY2021 1Q

YoY

Net sales

7,861

63.2％

Operating loss

△860

－

Operating loss

△598－

Net loss attributableto owners of parent△1,229－Net loss△881－

Purchases fromindividual customers

1,920

31.6％

【Business Topics】
Brand・Fashion business
Opened『KOMEHYOSHINJUKUWOMEN』

Openedfourpurchasecenters

Tire and Wheel business

Online store
enhancement

Sales areabout thesame as theprevious year(YoY99.3％)

3

Economic Trend
Despite the impact of the Novel coronavirus, Non-consolidated sales are recovering
Stock Price（yen）

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

Net sales YoY
(%)

250

Infectious disease spreadtax hike200

24,000
150
100
100

19,00050

014,000
19.4

56

78

9101112'20.1

23（Source：JAPAN DEPARTMENT STORES ASSOCIATION website

456FY202174Overview of Income Statement（ Consolidated ）Consolidated

FY2019 1Q

FY2020 1Q

FY2021 1Q

ChangeYoY

Net sales

11,271

12,4397,861△4,57763.2％

Gross profit

3,224

3,421

1,888

△1,533

55.2％

Gross profit
margin

28.6％

27.5％

24.0％

△3.5pt－SG&A expenses

2,894

3,328

2,748

△579

82.6％

Operatingincome

32992△860△953－

Ordinary income

326

81△937△1,019－Net income
attributableto owners of parent

21149△1,229△1,279－(Millions of yen)

5Overview of Income Statement（ Non-Consolidated ）Non-Consolidated

FY2019 1Q

FY2020 1Q

FY2021 1Q

ChangeYoY

Net sales

9,934

11,1055,321△5,78447.9％

Gross profit

2,735

2,928

1,192

△1,73640.7％

Gross profit
margin

27.5％

26.4％

22.4％

△4.0pt－SG&A expenses

2,445

2,791

1,790

△1,00064.2％

Operatingincome

289137△598△735－

Ordinary income

292

227

△648△876－

Net income

196

169

△881

△1,051－(Millions of yen)

6Operating income increase anddecrease factor（ Consolidated ）The company was forced to temporarily close stores andoperated at a loss due to a decline in net sales.
Operating income（△953）(Millions of yen)92
FY2020 1Q
Sales amountdecrease△1,258

Increase in personnel expenses due to businessexpansion△112
Increase in General and administrative expenses
due to rent of K-Brand Off Co., Ltd., etc. △46
Decrease in selling expenses such as advertisingexpenses+236
Rent and personnel expenses incurred during
temporary store shutdown recorded as
extraordinary expenses
+502

△ 860
FY2021 1Q

Gross Profit margindecrease△274

SG&A Expenses
decrease+5797

Extraordinary income/Extraordinary loss(Consolidated)
Rent and personnel expenses incurred during temporary store shutdown
recorded as extraordinary expenses(Millions of yen)

Subsidy income
210

Extraordinary income 210

General and administrativeexpenses
250
Personal expenses
220
Depreciation
31

Extraordinary loss △506
Losses incurred due totemporary shutdown △ 502

Loss on retirement of fixed assets △ 38Overview of Balance Sheet(Consolidated) Cash in reserves secured through borrowing to combat
the novel coronavirus pandemic
Total assets
38,797
Total assets
31,916
Cash and

Cash anddeposits

Consolidated
Liabilities andNet Assets
31,916

deposits
10,868

4,663

Liabilities andNet Assets
38,797
Current

Current

Liabilities

Liabilities

14,565

Non-Consolidate
Total assets
28,185

Total assets
32,969Liabilities andCash and

Cash andNet Assets
28,185

deposits 2,279

deposits7,990

Current Liabilities
5,946

8,191

Liabilities andNet Assets
32,969Current Liabilities
9,755
Non-current

Products

Products

Non-current

Non-current

13,26813,401

liabilities 4,061

liabilities 6,406

Other current

Other current

assets3,743

assets3,590

Net assetsNon-current

Non-current

19,663

Products

Non-current liabilities

11,584

9,435

3,915

Other current

Other current assets

assets3,530

5,164

Non-current

Non-current

assetsassetsassetsassets

10,241

10,936

10,79010,378FY2020 1Q

FY2021 1Q

FY2020 1Q

FY2021 1Q

FY2020 1Q(Millions of yen)

Net assets
17,825

FY2021 1Q

Products

liabilities

5,955

Net assets

Net assets

18,323

17,258FY2020 1Q

FY2021 1Q

9By Segment
FY2019 1Q

FY2020 1Q

FY2021 1Q

ChangeYoY

Net sales

10,374

11,701

7,137△4,56461.0％

Operatingincome343

184

△823

△1,008－Operatingmargin

3.3％

1.6％

－－－

Net sales

879716711△599.3％Operatingincome△23△95△3362－

Operatingmargin△2.7％△13.4％－－－Net sales

312416△866.9％

Operatingincome103△3△7－

Operatingmargin

32.0％

15.5％

－－－

(Millions of yen)

Brand
FashionTire andWheelOthers

10Brand・Fashion purchase (Non-Consolidated)
Four purchase centers opened.
Non-face-to-face home delivery purchasing continued.
Amount of purchasefrom individualcustomers(Millions of yen)

FY2019 1QFY2020 1Q

FY2021 1Q

Change

4,949

5,818

1,690

△4,12729.1％

Home delivery
Purchasing248260229△3088.2％

Total

5,198

6,078

1,920

△4,15831.6％

Purchase center(Includes purchase events)【Musashi-koyama ‘20.5】【Motosumiyoshi ’20.5】【Kintetsu-Yokkaichi ‘20.6】

YoY【Hills Walk-Tokushige ‘20.6】

11

Brand・Fashion New store (Non-Consolidated)
A three-store system in the proximity of Shinjuku Station was completed,enhancing convenience for customers【KOMEHYO SHINJUKU WOMEN ’20.6】【Image】

12

Store Type （ Non-Consolidated ）39 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

23stores3 stores
Sale and purchase *Clothing at a lower price point
Bags, small items, etc.
*Some stores only sellTotal 47 stores (’20.6)
13

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)

FY2019 1Q

FY2020 1Q

FY2021 1Q

Net sales
YoY

No. of products
sold YoY

E-commerce-inducedsales

1,866

1,765

1,253

71.0％

94.8％

E-commerce-induced
sales rate※※28.5％

27.3％

48.2％

－－

【 Percentage of online sales by channel (FY2021 1Q)】

KOMEHYO23.3%

website
Back
37.4%

39.3%
※Online Merges with Offline※※EC Sales as a Percentage of Retail Salesorders
Others【Online sales trend by channel】
KOMEHYO website(Millions of yen)

98%

109%

113%

Back orders

135%

140%

AprMayOthers107%

100%

Decrease due to shortened business hours
and temporary shutdown

Jan-20

FebMarJun14

Sales to corporate customers
Online bidding auctions started in May 2020.
Trade volume(Millions of yen)

FY2021 1Q

2,689【Transition of auction distribution amountfor domestic corporations】

YoY
41.7％

【Online bidding auctions started in May 2020. 】(Millions of yen)

5,757

6,449

4月後半大会
中止等により減少

2,689

FY2019 1Q

FY2020 1Q

FY2021 1Q

15

Plan for the Fiscal Year Ending March 31, 2021
Medium-term Management Plan

Disclosure when reasonably foreseeable
Strengthening
purchasing measures
Net sales

SG&A
expenses

Propulsion of contactlessbusiness including contactlesscustomers

Restraint through cost control

Plan for the Fiscal YearEnding March 31, 2021
Medium-termManagement Plan
To be announced as soon as
disclosure becomes possible

16

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: 958 Non-Consolidated: 544 (As of June 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)17

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 KOMEHYOSHINJUKU WOMEN,Purchasing Center
4 Stores●Opened KOMEHYO Shoten,
a 5-tsubo used clothing store, in Osu, Nagoya

1979

1987

1996

2000

2003

2004

2011

2012

2013

2017

2018

2019

2020

●Opened Ginza Store●Listed on the second section of the Tokyo
and Nagoya stock exchanges●Opened Purchasing Center3 Stores●Acquired Shellman Co.,Ltd.
●Listed on JASDAQ●Established SAHA KOMEHYO●Opened Yurakucho StoreCOMPANY LIMITED(full-scale expansion into Tokyo)●Expanded into Kansai●First Overseas Store Opened(Shinsaibashi Store)
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.,Ltdfrom 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

18

Management philosophy

19

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)

AUTOParts
Japan

Four by fourEngineering
Services

20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
25520

451

535

548

568

383
20
15307
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

5

100

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
3.019.3

020.321