Earnings Results Briefing for
the Third Quarter of the Fiscal YearEnding March 31, 2023
February 13, 2023
Komehyo Holdings Co., Ltd.
Securities code: 2780
(Tokyo and Nagoya Stock Exchanges)
IR・PR Department
TEL +81-52-249-5366
Email ir@komehyo.co.jp

Contents
１．Overview of Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2023

P. 2

２．Initiatives for the Third Quarter of the Fiscal YearEnding March 31, 2023

P. 19

３．Reference Information (Company Profile, etc.)

P．32

1

１．Overview of Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2023
２．Initiatives for the Third Quarter of the Fiscal YearEnding March 31, 2023
３．Reference Information (Company Profile, etc.)2

FY 2023 3Q Financial Summary
Tire and Wheel

Brand Fashion
Net sales

Operating income

58,853

3,371

33,344

Millions of yen

Millions of yen

Millions of yen（YoY 126.9％）（YoY 155.3％）（YoY 137.3％）

P13.

Purchase from individual customers

Increase in revenue and profit

P22-23.

Purchases from individuals were strong chiefly due to strong purchases at existing stores,
new store openings, and purchase events.

P14,24.

Accompanying strong individual purchases, corporate sales also performed well.

P20.

33 purchase centers, including 14 franchised centers, and three overseas stores opened and one flagship BRAND OFF
store was relocated.

The BRAND OFF Ginza Main Store has been renovated.

Opened 3 overseas stores (left: Thailand, right: Shanghai)

Net sales

Operating income

3,807

296

Millions of yen

Millions of yen（YoY 111.3％）（YoY 170.8％）

P13,30.
・Increase in revenue and profit

・The event commemorating CRAFT's 50th anniversary was so successful that it
gained new custom product users and sales per consumer rose.
・Sales of winter tires grew steadily, up 9% year-on-year.
Profit margin improved due to unit price increase due to price hike, etc.

3

Revisions to full-year performance plan for the fiscal year
ending March 31, 2023
Operating income

Ordinary income

Net income
attributableto owners of parent

82,500

4,350

4,350

2,830

258.30on this occasion

85,000

4,780

5,040

3,280

299.37

Change

2,500

430

690

450

－

Rate of change

3.0％

9.9％

15.9％

15.9％

－

(Millions of yen)
Forecasts released previously
Revised forecasts announced

FY2022

Dividends

Net sales

Basic earnings
per share(yen)Interim dividend

Fiscal year-end
dividend

Annual dividend

Dividend
payout ratio

Forecasts released
previously

25

25

50

19.4％

Revised forecasts
announced on thisoccasion

25

35

60

20.0％

4

Shareholder return
The annual dividend forecast has been revised upwards from 50 yen to 60 yen per share, in consideration of the
projected income level and other factors for the fiscal year ending March 31, 2023.
Aiming to increase dividends consistently in line with the status of profit and cash flow.
Payout ratio(%)

92.4
36.2

24.8

29.3

23.0

16.6

15.5

15.0

(planned)

30.6 34.7

19.4

15.5

Fiscal year-end dividendInterim dividend

5
7

7
5

7
7

8
8

10
9

20.0

35

15

14

15

15

15

16

11

14

15

15

15

16

20

8
16

8
8

25
12

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

5

Economic Trend
Demand for high-priced items remained strong, as at department stores.

30,000The percentage of KOMEHYO's net sales that are tax-free sales started to rise in October and rosemonth by month (reaching 9.5% in December 2022).
Nikkei Stock Average(monthly closing price)

Department store(fine arts/jewelry/precious metals)(10 millions of yen)
KOMEHYO Net sales（Million of yen）

20,000
6,000
5,000
4,000

3,000
2,000
1,000

The COVID-19
2nd wave

The COVID-19
3rd wave

The COVID19
4th wave

The COVID19
5th wave

The COVID19
6th wave

The COVID-19
7th wave

The
COVID-19
8th wave0(Source：JAPAN DEPARTMENT STORES）

FY20236

Changes in average purchaser unit price by product （KOMEHYO）
Due to purchase price control in line with market fluctuations, the year-on-year average sales price of watchesremained low. Jewelry and precious metals performed well in 1Q, bags and clothing in 2Q, and clothing in 3Q.
The unit purchase price per customer for all products is at the same level as the previous year.

（YoY） 150％

fashionbag
jewelry
All products

100％

watch

0％

APRILL 2022

MAY

JUNE

JULY

AUGUSTSEPTEMBEROCTOBERNOVEMBER

DECEMBER

7

Overview of income statement(Millions of yen)

FY2023
1Q

YoY

FY2023
2Q

Record-high sales and profits
YoY

FY20233Q

YoY

FY20239months

YoY

vs full year
plan*

Net sales

18,753132.4%

20,466 124.2%

23,475 122.0％

62,696125.7％

73.8％

Gross profit

4,717

118.4%

5,092 120.8%

6,476 127.8％

16,287122.8％－

25.2％ △2.9pt

24.9％ △0.7pt

27.6％＋1.3pt26.0％△0.6pt－3,978114.4%

4,088 113.1%

4,510

128.0%

12,576118.5%－

739 145.3％

1,004 166.9%

1,966

127.4%

3,710

139.8%

77.6％

3.9％ ＋0.3pt

4.9％ ＋1.2pt

8.4％＋0.4pt5.9％＋0.6pt－Ordinary income

760 147.4％

949 155.6%

2,269 147.7％

3,978149.4%

78.9％

Net income
attributableto owners of parent

519 154.0％

572 148.4%

1,603 171.3％

2,694

162.4%

82.2％

Gross profit
margin
SG&A expenses
Operating income
Operating profit
margin*Announcement of "Notice Concerning Revision of Earnings Forecast and Dividend Forecast" on February 13, 2023

8

Operating income increase and decrease factor
Purchases from individuals remained strong as in the first half and net sales increased.
Operating income grew thanks to efforts to control expenses and other efforts.

Increase in personnel expenses
such as salaries and allowances △838
Increase in selling expenses such as
advertising expenses △739
Increase in general administrative expenses
such as depreciation △385

Operating income(Millions of yen)

Gross profit margin increase9Changes in selling, general and administrative expenses
Upfront investment for the opening of KOMEHYO GINZA and increased hiring due to store expansion,
year-on-year increase over the last three years. The SG&A ratio has decreased compared to the
cumulative 3Q of the last 3 years due to advertising expenses that emphasize efficiency.
SG&A expenses to sales ratio(%)

22.8

18.3

19.2

26.9

21.3

20.1
(Millions of yen)

4,509
3,921

4,123
5,458

1,348

1,419
1,140
593

1,449
726

FY2021 3Q

FY2022 3Q

1,535

4,195

Personnel expenses +838
・Increase in salary allowances, etc.

4,620

1,920
1,055

1,566

1,896

2,608

FY2023 3Q

FY2021

FY2022

FY20239months

9months

9months

Year-on-year trend in thepast three years

General and administrative expenses +385
・Increase in depreciation, etc.

Selling expenses +739
・ Increase in advertising expenses, etc.

Quarter-by-quarter trend10Non-operating income(loss) / Extraordinary income(loss)
Rent expenses on store
300（construct in progress）
Interest expenses
43
Other
10

Non-operating
losses 355
Non-operating
income 623
Compensation income * 540
Foreign exchange gain
39
Dividend income
11
Commission income
4
Insurance claim income
2Interest income
1
Other
23

Impairment losses
Loss on retirement of fixed assets

Loss due to temporary closure

53
10
4

Extraordinary
losses 69
Extraordinary
income 29(Millions of yen)

Grant income
25
Gain on sale of fixed assets 3*In connection with the relocation of the BRAND OFF
Ginza Main Store11

Balance sheet overview(Millions of yen)

FY2022

FY2023 3Q

ChangeCurrent assets

29,45337,443＋7,989Cash anddeposits

9,080

10,372＋1,292→Increase cash on hand in preparation for personal purchases

Inventories

15,30820,557＋5,248→Individual purchases are brisk, SELBY Co., Ltd.
Inventory increased due to grouping

Other current
assets

5,065

6,514

＋1,448Non-current assets

10,213

10,989＋775

Assets39,66748,433＋8,765

Liabilities

18,966

24,967＋6,000Interest-bearing
liabilities

13,51919,648＋6,129

5,446

5,318

△128

Net assets

20,70023,465＋2,765

Liabilities andnet Assets

39,66748,433＋8,765

Other liabilities→Increase in cash on hand and inventories, increase ininterest-bearing debt

→Attributable to an increase in retained earnings and other factors

12Overview by segment
In the Brand Fashion business, both sales and profit increased thanks to strong purchases from individuals and theIn the tire and wheel business, second-hand sales remained strong(Millions of yen)

FY2023
1Q

YoY

FY20232Q

FY2023
3Q

YoY

YoY

FY20239months

YoY

17,794134.0％

19,519124.6％

21,538123.4％

58,853126.9％

Operating income

730

154.4％

1,002

176.1％

1,638

145.1％

3,371

155.3％

Operating margin

4.1%＋0.5pt5.1％＋1.5pt7.6％＋1.1pt5.7％＋1.0ptNet sales

947

109.6％

935

118.4 %

1,925

109.0％

3,807

111.3%

Operating income

2

－

△9

－

303

131.9%

296

170.8%

Operating margin

0.3％

－

－

－

15.8％

＋2.8pt7.8％＋2.7ptNet sales

71

84.9％

71

84.5％

71

84.7％

214

84.7％

Operating income

21

86.5％

20

80.8％

22

83.1％

64

83.5％

Operating margin

30.3%＋0.5pt28.8％△1.4pt30.8％△0.6pt30.0％△0.5ptNet sales

Brand
FashionTire and
Wheel
Real estateleasing13

Breakdown of consolidated Net sales (Retail / Overseas)
Corporate sales had a higher percentage due to strong purchases and for keeping stock new and fresh, whereas
retail was also bullish, keeping its share at slightly below 50%.
The overseas sales ratio dropped mainly due to buoyant domestic sales and the impact of lockdowns in Shanghai.

Overseas＊
9.3%
Corporate FY2023 9months
sales,etc.

Net sales＊

62,696

53.4%

Millions of yen

Retail46.6%

FY2023 9months
Net sales

62,696
Millions of yen
Domestic
90.7%*"Corporate sales" includes auction fees.

*The ratio of overseas business does not include domestic tax-free sales, etc.

14

Trends in Net sales and Gross Profit Margin
Both retail and corporate sales increased due to strong individual purchases.In addition to improving thepurchase ratio of purchases, the sales composition ratio of watches, which have a low gross profit margin,
declined. Gross profit margin increased by 1.3pt YoY.
Gross profit margin(%)

29.6
26.3

15,132

19,23727.6

23,475

FY2021 3Q FY2022 3Q FY2023 3Q
Year-on-year trend in thepast three years

Trend in gross profit
margin26.3

19,237

27.6
24.2

21,27625.2

18,75325.0

20,46623,475Net Sales(Millions of yen)

FY2022 3Q FY2022 4Q FY2023 1Q FY2023 2Q FY2023 3Q

Quarter-by-quarter trend

・The figure tends to rise in the third quarter, when the ratio of retail is high in the year-end busy season.
・Inventories are revised in September and in March. The figure tends to fall in the second and fourth quarters.
・The figure may vary depending on the weightings of items that can be purchased.

15

Purchase from individual customers (Group total)
Due to the steady growth in the amount of purchases per customer, personal purchases were strongat 130.7% year-on-year in 3Q. The highest purchase amount in the accounting period.
Number of stores
170
96

126

126

11,7406,754

FY2021 3Q

8,983

FY2022 3Q

FY2023 3Q

Year-on-year trend in thepast three years

148

137

162

170
Purchase fromindividual customers(Group total)(Millions of yen)
11,740

8,983

9,858

11,052

10,552

FY2022 3Q

FY2022 4Q

FY2023 1Q

FY2023 2Q

FY2023 3Q

Quarter-by-quarter trend※The individual purchase amount is the amount purchased from an individual customer throughthe following route.
・Purchasing at stores
・Purchasing at visited sites
・Purchasing at events・Purchasing using home delivery services

16

Changes in corporate auction trade volume
JBA auctions, particularly offline auctions in Kanazawa, displayed strength due mainly to anincrease in the number of registered members. The total trading volume of corporate auctions
increased 20% year on year, hitting a record high.
Number of registered members

2,591

3,095

3,573

3,095

3,124

3,280

3,409

3,573

9,854

10,346 (Millions of yen)

Trade volume
10,346
7,421

8,553

9,969
8,553

10,255JBA
KOMEHYO
AuctionFY2021 3Q FY2022 3Q FY2023 3Q

Year-on-year trend in thepast three years

FY2022 3Q FY2022 4Q FY2023 1Q FY2023 2Q FY2023 3Q
Quarter-by-quarter trend※KOMEHYO auction：The online auction method※K-BRAND OFF：Japan Brand Auction(JBA)TOKYO－the real bidding method
Japan Brand Auction(JBA)KANAZAWA－the live auction method
JBA Live Net Auction－The online bidding method17E-commerce-induced sales rate (KOMEHYO)
Our own e-commerce site performed well, up 11.3% year-on-year. Due to the impact of the watch market,
the composition ratio of watches in EC-related sales decreased by 10.8 points compared to the same period
last year. Sales related to EC also decreased due to the increase in the sales ratio of foreign visitors to Japan.
E-commerce-induced sales rate：EC Sales as a Percentage of Retail Sales

39.4

43.8

2,814
2,211

38.0

2,586

43.8

2,814

49.5

43.6

2,803
2,197

44.6

2,512

38.0

E-commerce
induced sales(Millions of yen)

2,586
KOMEHYO website

Back orders
Others

FY2021 3Q FY2022 3Q FY2023 3Q
Year-on-year trend in thepast three years

FY2022 3Q FY2022 4Q FY2023 1Q FY2023 2Q FY2023 3Q
Quarter-by-quarter trend※KOMEHYO website: Make a purchase by directly clicking the KOMEHYO online or by making a phone call to a contact center and receiving a customer service.
Back orders(Purchasing from a catalog): Make a purchase after choosing a product from a catalog at the KOMEHYO online store, having the product delivered toa nearby KOMEHYO making sure of the product in person.
Others(Other companies’ websites): Make a purchase at a store KOMEHYO set up at an Internet sales site operated by another company.

18

１．Overview of Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2023
２．Initiatives for the Third Quarter of the Fiscal YearEnding March 31, 2023
３．Reference Information (Company Profile, etc.)

19

Stores：Group total 170 stores（As of December 2022 )*Figures in parentheses (Brand Fashion

5

Flagship stores

3
2

Sales Stores
Stores annexed withsales facilities

12

Purchasing Center

76 ( 19 )Tire and Wheel

166) are change during the three quarters.

3(1)

2

2（ 2 ）

10

3

2

10

3

7（-1）

Franchised
purchasing centers

15 ( 14 )Overseas

6(1)

Total

99

BRAND OFF
KANAZAWA store

118

Shellman GINZA store

38

7

WORM OSAKA

3

Craft NAKAGAWA store

SELBY
OKAMACHI store

20Effect of opening the purchase center (KOMEHYO)
More than 30 purchase centers have been opened since the previous fiscal year,
and 100 purchase centers will have been opened in the three years, in places where customers pass by daily.
We are planning to increase purchase from individual customers by 3.0 billion yen per year (1.5 billion yen
during the fiscal year), targeting purchases from individual customers at 100 million yen per purchase center.

(100 million of yen)

Individual purchase amount transition image

15

15
30
20

10
31

New store openings
during the period30

For stores openedin the previousterm

New store openings during theperiodFor stores opened in theprevious term

Existing
store
Existing
store

FY'21

FY'22

FY‘23
９ months（achievement）

FY'23(PLAN)

FY'24(PLAN)

21

Efforts to strengthen purchasing （FY2023 9months)
116 purchase events held

19 purchasing centers launched
3Q launched
ASPIA AKASHI / PLARE MATSUDO/ Shin-Shizuoka cenova
Matsubishi Department Store/ MASA21 / Azabujuban

FY2023 1Q FY2023 2Q

FY2023 3Q• At commercial facilities and department stores considered to bereassuring, familiar and close to consumers since they are found intheir daily life
• Events may lead to launch of permanent stores.

FY2023 9months

8

5

6

19

storesstoresstoresstores22

Efforts to strengthen purchasing （FY2023 9months)
A hundred franchised purchase centers will be set up in the three-year period starting in the previous fiscal year.
We are aiming to introduce at least 20 new stores by the end of the current fiscal year.
Items purchased at franchise purchase centers are put to auction (JBA). The trade volume thus increases.
From September 2022 onwards, purchase events are held regularly in Kagoshima, Kumamoto and Miyazaki.

Franchise purchasing center specialty store opening plan（domestic）)
Progress in openings in theyear ending March 2023

70％

An increase in bases for purchase helped increase thetrade volume in the auction.
Product
commercial
izationNew centers in the year
ended March 2024

80

New centers in the year
ended March 2023
New centers in the year
ended March 2022

20

2

Generalcustomers

Generalcustomers

Purchasing

Existing store

Exhibit

FY2022

FY2023

FY2024Opened 14 FC purchasing specialty stores
FY2023 1Q

FY2023 2Q

FY2023 3Q

FY20239 months

3

8

3

14

storesstoresstoresstoresFC
Generalcustomers

General customers・
Corporation

Advantages of the owner ofa franchise center・Opening a center at low cost・Educational support
・Use of AI (assessing authenticity
and model numbers)
・call center

An attractive platform on
which an abundance of
items are placed for auction

Corporation23

Product distribution （FY2023 9months)
Purchasing

Purchase from individual
customers

77％

KOMEHYO
Merchandise center

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

39％

28％

27％

Purchase from
corporations

Sale

quality/market/distribution

6％
23％

Supplementing individual purchases mainly for the purpose ofmaintaining the attractiveness of stores

40％

Suitable for retail

Products purchased
nationwide are sent here,
and skilled appraisers
assess their authenticity
and maintain them as
needed.

The center manages
individual items, paying
attention to turnover andinventory risk,
and links online store
inventory and physicalstore inventory to provide
products to the mostappropriate buyers.

RetailStore
WEB（company,Other company,live commerce）• Not appropriate for retail(bad condition, etc.)• Expensive stock• High market price risk

60％

Corporate sales
Auction（company,Other company）
Ivent
wholesale（domestic・overseas）
Live commerce24

Store development in the Ginza area
Ginza is an important area for strengthening retail sales.
Expand stores as a group and expand contact points with customers.

February 15, 2022 KOMEHYO GINZA CLOSEDKOMEHYO
GINZA●●Tiffany

東急プラザ銀座●Feb 18-Aug 28 KOMEHYO GINZA LIMITED CLOSED●LOUIS VUITTON

BRAND OFFGINZA ●

KOMEHYO
GINZAPLUS●

KOMEHYO GINZA PLUS open

October 8

BRAND OFF GINZA store open

January 2023

KOMEHYO GINZA store open

BRAND OFF銀座本店●Shellman GINZA MITSUKOSHI store●

SELBY
Ginza Boutique●●
Shellman
GINZA BARNEYS
NEW YORK

September 1●GINZA SIX ●Shellman
GINZA store

KOMEHYO GINZA

25

Renovation of the flagship BRAND OFF Ginza Main Store
It opened on October 8, 2022. Its sales in October jumped 522% from the sales of theprevious Ginza main store in the same month of the previous year. It achieved bullish sales
mainly due to inbound tourists. In December, monthly purchases hit a record high.

26

Continue strengthening OMO （FY2023 9months)
Customer services on smartphones

Live Commerce

A total of 307 staff members across the country holds
Apart from the stores, we have launched dedicatedsmartphones exclusively for customer services tosites where Chinese influencers operate live
digitally communicate directly with customers.
commerce on social media services. They handle
After-sales services and customer needs are stored ininventories for live commerce. Their purpose is toform of data and notices are given about incoming goods.
increase the profitability of corporate sales. In theThat opens the way for more in-depth one-to-one
third quarter, the frequency of live commerce atcommunication.
stores was reduced in light of the increase in thenumber of customers for tax-free sales at stores.
actualresults

Number of customers that have beencommunicated with in the last three months

Number of sales
Number of purchases

0.8 Folds YoY

1.3 Folds YoY
1.3 Folds YoY

actualresultsSales
0.6 folds YoY
Gross profit 0.7 folds YoY

Contact center
In August 2020, a contact center was established with theaim of improving the customer experience starting with EC.
It responds to inquiries on goods, how to operate and others
through voice and chat communication.
KOMEHYO seeks to build a shopping environment thatallows customers to purchase without worries on the nonface-to-face platform and to easily obtain information theywant.

actualresults

Number of chats 1.1 folds YoY
Number of orders placed over the phone 0.8 folds YoY
Sales per customer through the contact center
1.2 folds the level without through the contact center27

Technology indispensable to store operation：AI
The system has been introduced to all the KOMEHYO purchase centers, all of K-Brand Off's franchised purchase centers and someof the LINK SMILE and USED MARKET shops. It will be introduced to purchase events and to the global business. It is a technology
indispensable to removal of counterfeit goods from circulation and to growth of the KOMEHYO Holdings Group.

purchase KOMEHYO
centers LINK SMILE
USED MARKET

Assessing authenticity and model numbers ofbags, wallets, purses and small articles fromfamous brands. Supporting Hermes, Louis
Vuitton, Chanel, Gucci and Prada

Futuredevelopment plan

Improvement ofcommunication withcustomers（ Enhanced CX ）training
assessors

Franchised
purchasing
centers

Curtailment of time fortraining assessors(Shorter lead time for launch)

BRAND OFF

Support for owners(Superiority in acquisition of
new franchisees)

Purchase events

Improvement of communication with customers

GLOBAL

Prevention of the know-how drain
To be introduced to overseas stores as well28

Overseas expansion
Overall operations of overseas stores in four locations, Thailand, Taiwan, Shanghai and Hong Kong, haveshifted from an investment phase to a phase of generating income for the Group.
A purchase center is set to be launched in central Singapore in April 2023 or later.
ThailandSHANGHAI

HONG KONG

TaiwanTwo stores are in operation. Purchases areSome stores were closed during the lockdown.

Purchases from individuals commenced in

90% of purchases are made by individuals,

strong mainly from wealthy people. Aims to run

A flagship store for sales and purchases was

October 2022. Performance is buoyant. BRAND

realizing a highly profitable structure.

five stores by the fiscal year ending March 31,

launched and management resources were

OFF stores in Hong Kong are commissioned to

Live

2025.

concentrated in it.

sell a part of the purchased goods in person.
Connections are built between stores in Hongcommerce

sales

using

SNS

increased by 121.9% year-on-year.

Kong to increase retail performance.

KOMEHYO terminal21 RAMA3店

KOMEHYO MOHO SHANGHAICommissioned sales handle around 50% of the items purchased（ Opened October 20th ）（ Opened December 24th ）from individuals. The remaining items purchased are handled
through corporate sales.

We will purchase and sell goods locally and expand business, while striving to get reuse to take root.
29

Tire and Wheel
Sales of used tires and wheels increased from a year ago due to strong online sales. Net sales and operating income surged.
Craft
・The 50th anniversary renewal event was held toincrease wheels and supplies for custom product users.
The event attracted customers, and sales per
customer rose.
・Sales of winter tires grew steadily, up 9% year-onyear.Profit margin improved due to unit price increase
due to price hike, etc.

Auto Parts Japan• An automatic washing machine was introduced
to improve the efficiency of used productoffering operations. This widened the range of
products handled in e-commerce malls,
increased the number of items proposed andincreased sales.
• Data on used items markets began to be stored
for the construction of a system for making
purchases at more appropriate prices.

4×4 engineering service•

Introduced an automatic washing machine to improvethe efficiency of used product offering operations, which
resulted in an increase in sales
Overseas export sales leaped 73% year on year.

• The lineup of mainstay products such as Bradley and
Air/G improved to increase the number of car models thatare compatible with them as well as size variations. That
bolstered sales in Japan and overseas.

30

Format of auctions among companies
KOMEHYO Auction and JBA complement each other in terms of area, date and format of the event.

Frequency of corporate auctions(K-BRAND OFF)

Jewels /watches /bags

Online auction 2 times/ month

Apparelclothing

Online auction Monthly

JBA
Kanazawa

Real auction Monthly

JBA Tokyo

Online auction Monthly

JBA
Live net

Online auction
Every Monday and Thursday

31

１．Overview of Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2023
２．Initiatives for the Third Quarter of the Fiscal YearEnding March 31, 2023
３．Reference Information (Company Profile, etc.)32

Corporate Profile
Company name

Komehyo Holdings Co., Ltd.

EstablishedMay 1979

Head Office

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

Representative
Capital※Transition to holding company system in October 2020

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

No. ofemployees

Consolidated: 1,105 Non-consolidated: 25 (As of December 2022)

Business
activities

Management planning, business operation support, administration and others for the
corporate group engaging in the Brand-Fashion Business and the Tire-Wheel Business

Fiscal year-end
Stock

March
Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)

33

Corporate History●Acquired Eve Corporation Co.,Ltd.
●Established KOMEHYO SHANGHANI LIMITED●Established Auto Parts KOMEHYO(currently AUTO PARTS JAPAN)●Established KOMEHYO HONG KONG LIMITED● Acquired CRAFT Co., Ltd.
●Established KOMEHYO Auction●Opened KOMEHYO Shoten,
a 5-tsubo used clothing store, in Osu, Nagoya

1979

1987

1996

2000

2003

2004

2011

2012

2013

2017

2018

●Transition to a holding
company structure●Opened the second
store in Bangkok,
Thailand

2019

2020

2022

●Opened KOMEHYO Ginza Store●Acquired Shellman Co.,Ltd.
●Listed on the second section of the Tokyo●Established SAHA
and Nagoya stock exchanges
KOMEHYO COMPANY● Listed on JASDAQ
LIMITED● Established
KOMEHYO Co., Ltd.

●Expanded into Kansai(KOMEHYO Shinsaibashi Store)●Started online sales●Expanded into Tokyo(KOMEHYO Purchasing Center Dogenzaka)● Changed the Japanese spelling of
its name from 米兵 to コメ兵●75th ANNIVERASARY●Shift to the Standard
Market of the Tokyo
Stock Exchange andto the Main Market of●Acquired Four by four engineering service the Nagoya Stock
Exchange
Co.,Ltd●Acquired
SELBY Co., Ltd.
●Retail store KOMEHYO opened in Bangkok,●Established KOMEHYO
Thailand
SINGAPORE PTE. LTE.
●Acquired K-BRAND OFF Co., Ltd●Opened the third andfourth stores in Bangkok
and two overseas subsidiaries
and in Chonburi province,
Thailand●Opened KOMEHYO MOHOSHANGHAI

34

Mission
Komehyo Holdings is necessary for a sustainable recycling society.
It acts as a relay point in the connection of “people,” “things,” and “society.”
We will strive to connect “good quality" and "value" to the future.

We respect people for making products, thank people for providing
products for use by other people, and make people who reuse suchproducts happy, and by doing so, create an empathy-based recycling
society.
We develop a concept of environmentally and sociallyconscious recycling into a culture.

We listen and empathize with what others say.
We value the importance of talking.
We take action proactively.
We are not afraid of creating change.
35

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

Maintenance, remake, editing, connection with people.
"Relay youth" is not just a downcycle of the value of things,
but an upcycle of increasing the value, even though it isreused.
As values for a sustainable future society spread, we willcontribute to the formation of a sustainable society by
respecting producers and users and relaying their "feelings".

36

KOMEHYO HD Group materiality (important issue)
Work on four tasks of purchase, sales, appraisal, and restoration to realize the circulation of value throughenvironmentally and socially conscious recycling, in pursuit of both promotion and growth of reuse and value
improvement of used goods.

Purchase Making reuse a common practice in society
Promotion and growth of reuse
Sales

Purchase

Restoration

Appraisal

Sales

Developing the reuse market further

Appraisal

Pursuing fair sustainability
Value improvement of used goods

Restoration

Restoring value with our unique technical capabilities

Value Chain for RELAY USE

37

A value chain where value circulates through relay use
Developing the reuse market further

Making reuse a common practice in society

Contributing to the development of the reuse market by proposing quality
items, taking advantage of the diversity of new items, unused items, items
for reuse, and others

Making it a common practice to sell goods which will no longer be used
Promoting education and creating opportunities for breaking away from thesocial structure of mass production for mass consumption● Revitalizing the reuse market through BtoB auctions● Initiatives to ensure that recycling of goods creates new value and leads to happiness● Providing unique value● Strengthening measures to drive KAITORI GO (creating opportunities through cross-industrial
collaboration)● Disseminating the reuse culture to other countries to deliver quality● Improving engagement

used goods to the world● Disseminating the culture of handing down goods from person to person, from Japan to the world● Introducing environmentally friendly shopping bags

● Creating an environment where goods can be purchased casually without worry● Expanding the reuse customer base in Japan and overseas● Cooperating with related government ministries and agencies and related organizations

Sales

Purchases

Restoration

Evaluation

Restoring value with our unique technical capabilities
Creating new value by understanding the intrinsic value of goods andapplying expertise that has been accumulated internally over many years 。
● Manufacturing and discovering distinct, attractive products● Next vintage, vintage, and antique products● Repair/restoration of fashion items, bags, watches, and jewelry● Product lineup for offering good quality from all over the world● Improving product knowledge● Developing the standard of product quality of Japan in other countries

Pursuing fair sustainability
Creating a sound reuse market, where anyone can have a sense of
security, with the Komehyo Holdings Group's skills to determine the value● Promoting reuse technologies (use of AI for assessing authenticity and model numbers)● Eliminating counterfeit goods from the reuse market● Working together with partners (business partners, franchised store owners, and auction members)● Efforts to ensure fair purchase prices and sales prices● Awareness-raising activities to prevent trouble or damage related to reuse , such as coercive buying● Developing appraisers with a unique curriculum

38Corporate governance system

The Group's management efficiency
and business performance are aimed
at respecting the interests of not only
shareholders, but also employees,
customers, business partners, creditors,
local communities, and other people
who have great influences andinterests. We are working onstrengthening corporate governancewith an emphasis on improvement andcompliance as the most importantmanagement issue.

39Officer system

Skills matrix

Name

Takuji Ishihara

Toshio Sawada

Yuya Yamauchi

Masaru Hirauchi

Yoshiko Nakahara

Kazutoshi Torita

Momoko Murase

Miyuki Minamiru

Title

President andRepresentative Director

Managing Director

Director

Outside Director

Outside Director

Director(Audit and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)

Corporate management

〇

〇

〇

〇

Management strategy andplanning

〇

〇

〇

〇

〇

〇

Marketing〇〇〇Experience and knowledge
in the industry

〇

〇

〇

〇

Business development andinnovation〇

Global
IT・DX

〇
〇

〇

〇

〇

〇

〇

Finance・Accounting〇〇

Legal・Risk Management〇

governance
ESG・Sustainable〇

Qualifications, etc.

MBA

〇

〇

〇

CPA
Tax accountant

Lawyer〇Small business doctor

40

Business system diagrampurchase

Sales

Home delivery
Purchasing

WEB

Purchasing at
eventsAuctionPurchasing at
visited sites

New and used goods business

Used goods businessStoresGeneral customers, etc.

General customers, etc.

StoresUsed goods businessAuctions by other companies

41Medium-term management target (until FY2025)(Millions of yen)

FY2023 *1

FY2024 *2

FY2025*3

Full year

Full year

Full year

Net sales

85,00085,000100,000

Operating income

4,780

4,400

5,500

Operating profit margin

5.6%

5.2%

5.5%

Ordinary income

5,040

4,400

5,500

Net income attributableto owners of parent

3,280

2,850

3,450

* 1 Earnings forecast revised on February 13, 2023
* 2 A rolling forecast will be provided in May 2024.
* 3 It is expected that retail sales will increase as inbound demand returns in the fiscal year ending March 2025.

42

Sales plan
Will revise forecasts in May 2023.

(Millions of yen)

100,000
85,00085,00071,14857,51050,96040,212

43,19945,90350,72345,497
40,134FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Revised results
forecasts in
February 2023.

43

Operating Profit Plan
7.5

7.2

Operating Income
Margin (%)

6.1
3.6

5.2

5.6

5.2

5.5

3.7

2.1
0.5

Will revise forecasts in May 2023.

1.2

5,500
Operating Income(Millions of yen)

4,780
4,400
3,714

2,999

3,129

2,789
1,625

832

1,860
297

590

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Revised results
forecasts in
February 2023.

44

Ordinary income/Net income Plan

Will revise forecasts in May 2023.

Ordinary
income5,500
Net income
attributableto owners ofparent(Millions of yen)

5,040
4,400

3,772
2,988

1,834

3,450

3,280

3,162

2,850

2,742
2,259

2,040
1,696

1,610

1,073

815
355

1,826
1,009
431
△ 595
9 △ 234

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Revised results
forecasts in
February 2023.

45

Medium-term management plan:
Continuous business expansion through investments in growth businesses and human resource development

Brand Fashion
BtoC

BtoB

Oversea

１．Achieving growth with existing core businesses
２．Achieving growth with businesses that contribute to the distributionof used goods to revitalize the market
３．Achieving growth with businesses that contribute to market growth
and the formation of a sound market

Tire/Wheel
１．Strengthening profitability

メーカー

２．Strengthening product development
３．Making attempts at businesses and items with affinity
1次流通

2次流通

46

Growth in the brand reuse market image

Important investment items
・Human resource recruitment anddevelopment
・Stores (openings/reorganization)・IT (reuse technologies)
・Marketing
・Sustainability

Supporting managementfoundations
・Organizational development
・HR development③Businesses that contribute to distribution②Businesses that contribute to market growth①Core business

Achieving growth by
expanding networks withcustomers, such aspurchasing and selling
goods in Japan and othercountries

Increasing the grossmerchandise value(GMV) with businesses
linked with corebusinesses, such as
operation of BtoB
auctions

Businesses based on
support for or cooperation
with users and business
operators in the reusemarket provided andmade by using our own
assets, which lead to the
expansion of the reusemarket of brand goods

Tactics options
・M＆A
・Capital alliance・Business alliances

47

Medium-term Management Plan : Brand・Fashion
Gaining more influence in the reuse market by making maximum use of the Group's assets
１．Achieving growth with existing core businesses＝Domestic＝・Increasing the number of purchasing channels(continuing to open purchase centers and strengthening alliances)
・Creating seamless customer touch points by using
digital technologies and improving the customer experience value through the reorganization of stores
・Improving the value of used goods by means of upcycling＝Overseas＝・Strengthening purchase and sales through the opening of new stores at each base, etc.
・Developing new bases
・Building a network for the distribution of products among overseas bases

48

Medium-term Management Plan : Brand・Fashion
Gaining more influence in the reuse market by making maximum use of the Group's assets

２．Achieving growth with businesses that contribute to the distribution of used goods to revitalize the market
・Auctioning more items through franchise development(openings of 100 purchase centers by franchised stores)

・Providing reuse technologies, expertise, and market information to member companies
・Acquiring new member companies in Japan and other countries by using digital technologies

３．Achieving growth with businesses that contribute to market growth in Japan and overseas and the formation of a soundreuse market
・Supporting the growth of reuse-related businesses with SaaS・Supporting new entrant companies, etc. by using human resources and training systems
・Business cooperation using databases (customer data and product data)49

Medium-term Management Plan : Tire・Wheel
Expanding the business by strengthening profitability and investing in growth drivers
１．Strengthening profitability through collaboration among the three companies
・Strengthening and opening specialty stores developed according to customer preference・Strengthening the sale and purchase of used tires and wheels and controlling their inventory

・Improving productivity and strengthening expertise through investment in human resources

２．Investing in product development
・Planning and manufacturing wheels and automobile parts by taking advantage of brand power・Stepping up efforts to supply products to overseas markets

・Maintaining and increasing brand power in Japan and overseas

３．Approaching businesses and items with affinity
・Used cars
・Automotive supplies
・Car camping supplies

50

Store development in the Ginza area
Ginza is an important area for strengthening retail sales.
Expand stores as a group and expand contact points with customers.

February 15, 2022 KOMEHYO GINZA CLOSEDKOMEHYO
GINZA●●Tiffany

Feb 18-Aug 28 KOMEHYO GINZA LIMITED CLOSEDKOMEHYO GINZA PLUS

●LOUIS VUITTON●松屋銀座

KOMEHYO
GINZAPLUS
BRAND OFF ●
GINZA

●

●Shellman GINZAMITSUKOSHI store

September 1

KOMEHYO GINZA PLUS open

October 8

BRAND OFF GINZA store open

January 2023

SELBY Ginza
Boutique●

KOMEHYO GINZA store
Scheduled to open

Shellman GINZA ●BARNEYS NEW YORK
●GINZA SIX ●Shellman GINZA store

BRAND OFF GINZA Store51

Human capital management（KOMEHYO）
In the business model of environmentally and socially conscious recycling, humans play a wide range of roles(knowledge, skills, expertise, speed, relationship with customers, etc.), making it important to take initiatives todevelop and retain human resources.

Sale

Purchase

Reproduction

Evaluation

52

Human capital management（KOMEHYO）
Groupwide training of personnel for the next generation

Education of assessors by a team dedicated toeducation

KOMEHYO provide opportunities for groupwide training aimed at developing
management personnel and executives for the next generation.
It continues training of staff to display their individual capabilities to thefullest degree.
It carries out organizational development directly linked to business
operations to ensure effective human capital management.

KOMEHYO focuses its efforts on education of assessors and sales staff.
The education team has systematized various knowledge and skills
involved in communication with customers.
The system will stably develop assessors requisite to store launch and help
shorten the lead time for it.

53

Human resources retention rate
Employee turnover rate has been low, which means that the employee retention rate has been high.
This enables to accumulate expertise, laying a foundation for stable growth.

General regular workers(except part-time workers)(Ministry of Health,Laver and Welfare)Turnover rate(KOMEHYO)
Turnover rate(GROUP)
12.9
11.3

11.7

12.4
11.5

12.2

11.8

11.4

11.6

11.3

11.4

10.7

8.8
7.6
5.0

5.8

5.8

5.2

3.6

4.5

3.2

3.9

4.6
3.0

3.7

4.0

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

54

Sales shares by segment and by sales channel (FY2022)
By segment

Brand/fashion businessby operating company

Tire and Wheel

Real estate leasing

Other

6.1%

0.5%

10.1%

By sales channel

Retail43.3%

K-BRAND OFF
Consolidated sales
71,148 million yen

14.8%

Brand and fashion businessamount of sales

66,688 million yen(FY2022.3)(FY2022.3)

Brand Fashion

KOMEHYO

93.4%

75.1%

Corporate

Komehyo Sales

sales 50,088 million yen

56.7%(FY2022.3)

EC related sales
46.6% of retail55

IR contact

IR・PR Department
Phone：+81-52-249-5366
E-mail：ir@komehyo.co.jp
Note:This document is an English translation of a document prepared in Japanese.
Statements in this document that are not historical facts; statements concerning current plans, forecasts, strategies, 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 Holdings Co.,Ltd. using currently
available information.
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 theirown discretion.

56