Earnings Results Briefing
for the Fiscal Year
Ended March 31, 2022
May 2022
Komehyo Holdings Co., Ltd.
Securities code: 2780
(Tokyo and Nagoya Stock Exchanges)
IR・PR Department
TEL:+81-52-249-5366

Contents
１．Overview of Financial Results
for the Fiscal Year Ended March 31, 2022
２．Initiatives for the Fiscal Year
Ended March 31, 2022
３．Medium-term Management Plan
４．Shareholder return

５．Company Profile, etc.
2

１．Overview of Financial Results
for the Fiscal Year Ended March 31, 2022
２．Initiatives for the Fiscal Year
Ended March 31, 2022
３．Medium-term Management Plan
４．Shareholder return

５．Company Profile, etc.
3

FY 2022 Financial Summary【Brand・Fashion business】
・Net sales increased 43.1% YoY and operating income also increased 570.3% YoY.

Operating profit margin grew by 3.9pt YoY.
・Record high purchases from individuals due to store openings and purchase events, etc.,with openings of 37 purchase centers (of which, two are franchised stores)
・Corporate sales were also strong due to steady purchases from individuals.

・Opened a store specializing in sneakers at a department store【 Tire and Wheel business 】
・Net sales increased 8.3% YoY and operating income

also increased 276.3% YoY. Operating profit margin grew by 2.4pt YoY.
・Release of new products from 4×4 Engineering Services
SNEAKER MARKET by KOMEHYO(Opened in March 2022)

4

Economic Trend
KOMEHYO's net sales are less susceptible to the impact of the COVID-19.
30,000

Nikkei Stock Average(monthly closing price)(yen)20,000Department store(fine arts/jewelry/precious metals)(10 millions of yen)
KOMEHYO Net sales(Millions of yen)

6,000
5,000
4,000

3,000
2,000
1,000

The COVID-19
2nd wave

The COVID-19
3rd wave

The COVID-19
4th wave

The COVID-19
5th wave

The COVID-19
6th wave0'20.4 5

6

7

8

9

10

11

12 '21.1 2(Source：JAPAN DEPARTMENT STORES）

3

4

5

6

7

8

9

10

11

12 '22.1 2

3FY2022

5

Special factors of FY2022 (rising clock and gold prices)
Rising watch prices (continued from October 2020) and rising gold prices (end of February to March
2022) in the reuse market have an impact as a "tailwind" for the brand and fashion business.

Gold /
BullionWatch

Impact of increased retail sales ongross profit

Impact of increased trading volume forcorporate auctions on gross profit

Impact of increased
corporate sales on gross profit

336

46

214

(Millions of yen)

(Millions of yen)

Gross profit is estimated to be about 596 millions of yen
There was a "tailwind" due to the external environment6

FY 2022 Performance
Net sales, operating Income, ordinary income, and net income all surpassed previous record highs.
(Millions ofyen)

FY2020

FY2021

FY2022

ChangeYoY

Net sales

57,51050,723

71,14820,425140.3％

Gross profit

14,562

13,836

18,415

4,579

133.1％

Gross profit
margin

25.3％

27.3％

25.9％

△1.4pt－SG&A expenses

14,265

13,245

14,7001,455

111.0％

Operatingincome

297

590

3,714

3,124

629.1％

Ordinary income

9

431

3,772

3,340

874.6％Net income
attributableto owners of parent

△234

△595

2,259

2,854

－

7

FY 2022 quarterly results(Millions of yen)

FY2021
1Q

FY20212Q

YoY

FY2021
3Q

YoY

YoY

FY2021
4Q

YoY

Net sales

14,162180.1%

16,472

127.1%

19,237127.1%

21,276144.0%

Gross profit

3,985

211.1%

4,215

124.5%

5,067

113.3%

5,147

125.8%

Gross profit
margin28.1％＋4.1pt25.6％△0.5pt26.3%△3.3pt24.2％△3.5ptSG&A expenses

3,476

126.5%

3,613

103.8%

3,523

102.0%

4,086

114.7%

Operatingincome

508

－

601

－

1,543

151.5%

1,060

200.7%

Ordinary
income

515

－

610

－

1,536

157.7%

1,109

221.2%Net income
attributableto owners of parent

337

－

385

－

936

131.4%

600

843.8%

8Changes in net sales
Corporate sales of the Brand Fashion business remained strong and reached a record high.
71,148(Millions of yen)

57,51050,96040,212

43,199Real estate leasing
Tire and Wheel

45,90350,72345,497
40,134
Brand・Fashion

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY20229

Changes in profit ratios
Operating profit margin increased, despite a decline in the gross profit margin,offset by a decline in the SG&A expenses to sales ratio.
Gross profit margin

31.4

30.5
28.5

23.9

7.5

27.8

25.7
23.2

7.2

FY2015

28.5

24.9

22.4

27.1

23.4

27.3
25.3
24.8

26.1

6.1

FY2016

25.9

20.7

2.1

FY2014

Operating income margin （％）

SG&A expenses to sales ratio

FY2017

3.6

FY20185.2

3.7

FY20190.5

1.2

FY2020

FY2021

FY202210

Changes in expenses
There were increases in selling expenses such as advertising expenses, as well as in personnel
expenses such as salaries and allowances and recruiting costs.
14,70014,265

13,245(Millions of yen)

11,342
9,627

10,038

10,271

11,936

10,312Administrative expenses

Personal expenses

Selling expenses

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

11

Changes in Operating income
Purchases from individuals remained strong and net sales increased. Operating income reached a record highthanks to expense control and other initiatives.

7.5

Operating Income
Margin (%)

7.2
6.1

5.2

2,999

3.6

3.7

2.1

1.2

3,129

3,714

0.5

Tire and Wheel

2,789

1,625

Operating Income(Millions of yen)

1,860

832
297

FY2014FY2015FY2016FY2017FY2018FY2019FY2020Real estate leasing

Brand・Fashion

590

FY2021

FY202212

Changes in ordinary income / net income
Both ordinary income and net income attributable to owners of parent hit record highs.
ordinary
income
3,772
2,988

3,162

(Millions of yen)

2,742

Net income
attributableto owners ofparent

2,259
1,834

2,040
1,696

1,610
1,073
815

1,826

1,009
431

355
9 △ 234
FY2014FY2015FY2016FY2017FY2018FY2019FY2020△ 595
FY2021

FY202213

Changes in ROA/ROE
A double-digit ROE was regained with the improvement of operating profit margin.

13.7

ROA

13.2

ROE

11.7 （％）

11.1
12.9

12.8
9.7

6.1
3.3

5.8

6.3

9.8

5.2

1.2
0.0

2.0
△ 1.2

△ 3.2
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY202214

Statement of Cash Flows
Cash flows from financing activities turned negative, and cash and cash equivalents decreased
due to the repayment of debt
11,894
Cash and cash equivalents(Millions of yen)

10,738

7,330
6,086
4,769

4,379

3,886
1,715
536

1,447

Cash flows fromoperating activities

2,113

505

1,651
669

△ 700△ 107△ 1,393

FY20171,353△ 2,239

FY2018FY2019△ 1,268

FY2020△ 1,222

1,134

Cash flows frominvesting activities△ 529

Cash flows fromfinancing activities△ 1,895

FY2021

FY2022

15

Operating income increase and decrease factor
Purchases from individuals remained strong and net sales increased. Operating income grewsignificantly thanks to expense control and other efforts.

Gross Profit
margin decrease(Millions of yen)

SG&A Expenses
increase
Sales amountincrease
Personal expenses increased △742
Increase in selling expenses
such as advertising expenses △477
Increase in general andadministrative expenses suchas land rent
△235

16

Changes in selling, general and administrative expenses
Ratio of SG&A expenses declined due in part to efficiency-oriented advertising.
24.8

26.1
SG&A expenses to sales ratio(%)

20.7

14,265

14,700(Millions of yen)

5,610

Increase in general and administrative expenses
such as land rent
＋235

13,245
5,714

5,374

Personal expenses increased ＋742
5,689

5,641

6,383

Increase in selling expenses
such as advertising expenses +477

2,861

2,229

2,707

FY2020

FY2021

FY202217

Non-operating income(loss) / Extraordinary income(loss)
Interest expenses 52
Other
10
Non-operating loss 62

Impairment loss
327
Loss on retirement of fixed assets 152
Loss due to temporary closure
14
Extraordinary loss 494

Non-operating income 120

Extraordinary income 48

Foreign exchange gain 66
Dividend income
14
Commission income
5
Other
33

Grant income
23
Gain on reversal of asset
retirement obligations
13
Gain on sale of fixed assets12(Millions of yen)18

Balance sheet overview(Millions of yen)

FY2021

FY2022

Change27,28629,453

2,167

Cash and deposits

10,5389,080△1,458→Decreased due to repayment of debt

Products

12,64915,277+2,627→Merchandise increased with improved purchases

Other current assets

4,097

5,096

+999

Non-current assets

10,116

10,213+97

Total assets

37,402

39,6672,265

Liabilities

18,955

18,966

10

Interest-bearing
liabilities

14,746

13,519△1,226

Other liabilities

4,209

5,446

1,237

Net assets

18,446

20,700+2,254

Liabilities andNet Assets

37,402

39,6672,265

Current assets

from individuals.

→Borrowings decreased with the normalization of cash on hand.

→Attributable to an increase in retained earnings and other factors

19Overview by segment
In the Brand Fashion business, both sales and profit increased thanks to strong purchases from individuals and the strong
results of auctions for companies. Sales and profit also increased in the Tire and Wheel business owing to the strong sales ofsummer and winter tires.

(million of yen)

Brand
FashionTire and
Wheel
Real estateleasing

1Q

YoY

2Q

YoY

3Q

YoY

4Q

YoY

FY2022YoY

Net sales

13,277186.0％

15,622128.8％

17,450129.6%

20,297146.5%

66,688143.1％

Operatingincome

472

－

569

－

1,129

146.5%

1,083

185.5%

3,254

670.3%

Operatingmargin3.6%＋15.1pt

3.6%＋4.0pt6.5%＋0.8pt5.3%＋1.1pt4.9%＋3.9ptNet sales

864

121.5％

790

101.3％

1,766

106.9％

961

106.6％

4,382

108.3%

Operatingincome

△20

－

△35

－

230

110.8%

△26

－

147

376.3%

Operatingmargin

－

－

－

－

13.0%

＋0.4pt－－3.4%＋2.4ptNet sales

84513.1％

84424.0％

84

98.7%

80

97.7%

334

163.2%

Operatingincome

25

－

25

－

26

106.7%

23

91.5%

101

221.5%

Operatingmargin29.8%＋50.9pt

30.2%＋39.8pt

31.4%＋2.3pt29.6%△2.0pt

30.2％

7.9pt

20

Changes in gross merchandise value
GMV, which indicates the scale of our business, is an indicator of the promotion of relay use.
GMV growth leads to business growth and improved profitability(Millions of yen)

51,077

40,77839,071

36,42031,926

41,09732,962
27,692FY2019 1H

FY2019 2H

FY2020 1H

FY2020 2H

FY2021 1H

FY2021 2H

FY2022 1H

FY2022 2H

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

21

Breakdown of consolidated Net sales (Retail / Overseas)
The hybrid business of retail and corporate sales is balanced across the Group as a whole.
Even including the third quarter, which is the busy season in Japan,
the ratio of overseas sales remained steady at 10% of total sales.

Overseas
9.6%
Corporate
sales,etc.
52.5%

FY2022
Net sales
711,148(Millions of yen)

Retail47.5%

FY2022 3Q
Net sales
49,872(Millions of yen)Domestic
90.4%※The ratio of overseas business does not include domestic tax-free sales, etc.

22

Trends in Consolidated Net sales and Gross Profit Margin
In 4Q, corporate sales with a low gross margin increased significantly, mainly reflecting the steep rise in gold
market price.
Gross profit margin(%)

29.6

27.5
24.0

12,439

25.9

24.3

24.0

15,288 14,999 14,782

26.1

12,95727.7

15,132 14,771

28.1

25.6

14,162

16,472

26.3

24.2

Net Sales(Millions of yen)
19,237 21,276

7,861

1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

4Q

FY2022

Seasonal factors behind the change in the gross profit margin include a tendency to increase in the third quarter,
when the ratio of retail increases for the year-end shopping season, and a tendency to decrease in the second andfourth quarters for stock-taking.

23

Purchase from individual customers (Group total)
Purchases from individuals remained favorable with the opening of Komehyo’s purchasing centers, the holdingof KAITORI Go purchasing events, and an increase in the amount of purchases per customer.
In particular, the purchase price of watches increased sharply.

Number of stores
93

96

94

5,599

98

6,754

6,312

'21.3-3Q'21.3-4Q

109

126

116

8,983

7,574

7,728

'22.3-1Q'22.3-2Q

137

Purchase fromindividual customers(Group total)
9,858(Millions of yen)

2,535

'21.3-1Q'21.3-2Q

FY2021'22.3-3Q'22.3-4Q

FY2022※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)

24

Changes in corporate auction trade volume
JBA auctions (particularly the offline auctions in Kanazawa) continued to be strong due to anincrease in the number of registered members.
The total volume of auctions among companies increased 40% YoY.
Number of registeredmembers

2,743

2,591

2,755

2,812

3,095

2,966

3,124
9,969

7,421

6,786

7,151

7,947

8,779

8,553

Trade volume(Millions of yen)

JBA

3,518

KOMEHYO
Auction'21.3-1Q'21.3-2Q'21.3-3Q

FY2021'21.3-4Q'22.3-1Q'22.3-2Q'22.3-3Q'22.3-4Q

FY2022※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 method25

E-commerce-induced sales rate(KOMEHYO)
While the infection situation of the new corona is settling down, the habit of shopping through EC has become
established.
The EC involvement rate increased by 3.9 points from 42.7% in the 21.3 period to 46.6% in the 21.3 period, andthe target of 50% is just around the corner.
48.2

E-commerce-induced sales rate：EC Sales as a Percentage of Retail Sales
46.1
43.8
43.7
41.6
41.0
39.4

49.5
E-commerce
induced sales

2,814
2,006

2,211

2,176

2,021

2,803 (Millions of yen)

2,333

KOMEHYO
website

1,253
Back orders

Others'21.3-1Q'21.3-2Q'21.3-3Q

FY2021'21.3-4Q'22.3-1Q'22.3-2Q'22.3-3Q'22.3-4Q

FY2022※KOMEHYO website: Make a purchase by directly clicking the KOMEHYO online store 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 store and 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.

26

１．Overview of Financial Results
for the Fiscal Year Ended March 31, 2022
２．Initiatives for the Fiscal Year
Ended March 31, 2022
３．Medium-term Management Plan
４．Shareholder return

５．Company Profile, etc.
27

Stores：Group total 137 stores（As of March 2022 )Brand Fashion

Tire and Wheel

Flagship stores

5

－

２

1

－

－

－

Sales Stores

－

2

－

6

2

－

－

Stores annexed withsales facilities

12

6

2

－

－

10

4

Purchasing
Center59－

10(FC2)

－

－

－

－

Overseas

5

－

11

－

－

－

－

Total

81

8

25

7

2

10

4

BRAND OFF
KANAZAWA store

Shellman GINZA store

WORM OSAKA(July ‘21 Opened)

Craft NAKAGAWA store

28

Opened stores in FY2022（KOMEHYO/Purchasing centers）
KOMEHYO opened 32 purchase centers in the fiscal year and achieved the goal of opening morethan 30 stores per year.
West Japan

East Japan

1Q HAKATA HANKYUAEON MALL IBARAKIKAWANISHI HANKYU
2Q DAIMARU SUMA
AEON MALL KOBE KITA
3Q MATSUYAMA MITSUKOSHI

1Q HIBARIGAOKA PARCOSAPPORO TOKYO
2Q COCOON CITY
MARUHIRO IRUMA
3Q MARUHIOR AGEOLAZONA Kawasaki Plaza

4Q NIKKE COLTON PLAZAARIAKE GARDENHIROOYAGIHASHI DEPARTMENT STORESHINJU MARUI MAIN BUILDING

TAMA-PLAZA TERRACEATRE OMORIAKABANE SUZURAN STREETCentral1Q AEON MALL KUWANA
VERSAWALK NISHIOAEON MALL ATSUTA
2Q ISSYATOYOHASHI KALMIA

3Q NORITAKE SHINMACHI
4Q ＪＲ GIFUEKI MINAMI
AZ PARK
mozo WONDER CITY
ASTY KOUZOUJI
SAKAE MORINOCHIKAGAIAEON MALL MIYOSHI※Stores with underlining are stores specializing in purchases, and they became permanent stores with the "KAITORI GO" purchasing event as a foothold.

29Effect of opening the purchase center image (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.

20

15
30

(100 million yen)
15
30
30

New store
opening

Existing
store

257
169

FY2021

FY2022

FY2023

FY202530

Product distribution image（KOMEHYO)・Stores
・Home delivery
Purchase fromPurchasing
・Purchasing at individual customers
events
72.9％
・Purchasing at
visited sites

25-30％

35-45％

25-30％

5-10％

・Suitable for retail

Retail43.3％

KOMEHYO
Product
centerQuality
Market priceDistribution

Purchase from
corporations

Corporate
sales

27.1％

56.7%
• Not appropriate for retail(bad condition, etc.)• Expensive stock• High market price risk

・Stores・Web
KOMEHYO
websiteOtherswebsite・Auction・Wholesale
Domestic
Overseas
・Events
IJT, etc.

31

Strengthening OMO that will continue
from the previous term （KOMEHYO）
WEB customer
service

SNS

Purchase - sale
Reserve

Contact Center

One to One
customer service

Membershipregistration onlywith a phone
number

CX Strategy

Increase customer LTV
including sale and purchaseLive Commerce

32

Status of utilization by members (KOMEHYO)
While the majority of members only purchase goods or only sell their goods at stores, there also exist those who both purchase and sell goods.
The ratios of those who only buy and sell goods online are rising due to the OMO strategy and the openings of purchase centers.

EC only(6.0%→6.8%)

All use
(0.4%→0.7%)
Store＋EC(0.5%→0.7%)

Purchase＋EC(0.2%→0.8%)

Purchase only
(30.4%→34.7%)

Store only
(51.2%→45.6%)

Purchase＋Store
(11.3%→10.8%)

Changes in UU number composition ratio'14~'19 →'14~’22(Members who joined after November 2010)

33

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.

Future plans
KOMEHYO
GINZA store●
東急プラザ銀座●

Until late July

KOMEHYO GINZA Limited（back order service and purchase by appointment only）●ルイ・ヴィトン
●松屋銀座

KOMEHYO
Former
GINZA PLUS BRAND OFF
BRAND OFF ●GINZA store●Shellman GINZA MITSUKOSHI store
GINZA
●
●
●
● Former
銀座三越
KOMEHYO GINZA store● KOMEHYOGINZA LIMITED
Shellman
GINZA BARNEYS NY store ●●GINZA SIX

Early September KOMEHYO GINZA PLUS
（back order service and purchase by appointment only）
Early October

BRAND OFF GINZA store relocation（Sale / Purchase / Pawn shop）

Late November

KOMEHYO GINZA store（Tentative）（Sale / Purchase ）●Shellman GINZA store

34

Assessment of authenticity and model numbers through AI
The AI has been introduced to all KOMEHYO purchase centers. It will also be introduced to purchase centers of
K-BRAND OFF (franchised stores).
In the future, the AI is planned to be introduced to LINK SMILE by KOMEHYO and KAITORI Go purchasing events.

・Improvement of communication with customers
・Elimination of counterfeit goods
・Quicker development of assessors
・Global expansion
・Franchise development

35

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.

36

Human resources development（KOMEHYO）
The number of female appraisers is rising steadily due to the systematization of training.
Of the 84 stores in Japan, the number of female store managers and assistant managers increased to 18 stores.

Number of appraisers
Male

FemaleFY2018FY2022

0

100

200

300

37

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

38

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

39Corporate Auction（KOMEHYO Auction）
Renewal of the member site from "bid method" to "auction method"
Improving member convenience and making it a more attractive platform

1. Visualize pricing process through bid-up
system

2. Increase bidding efficiency throughsimultaneous bids using the shopping
cart function
3. Facilitate the discovery of intended items
using narrowed-down search and special
condition search
4. Allow instant purchase setting to reduce
the lead time to conversion to cash
40

Oversea（KOMEHYO Shanghai (CHINA)）
KOMEHYO Shanghai now has three stores: Shanghai Isetan and Shanghai Takashimaya's
limited-time stores have been converted to permanent stores, and a new store has been
opened at LaLa Station (photo on the right).

Shanghai Isetan

Shanghai Takashimaya's

LaLa station Shanghai

41

Tire and Wheel
Both sales and profit increased as CRAFT focused its efforts on selling summer and winterproducts and custom products such as suspension. Moreover, 4×4 Engineering Services
released new products.

42

１．Overview of Financial Results
for the Fiscal Year Ended March 31, 2022
２．Initiatives for the Fiscal Year
Ended March 31, 2022
３．Medium-term Management Plan
４．Shareholder return

５．Company Profile, etc.
43Medium-term management target (until FY2025)
FY2023(Millions of yen)

1H

FY2024FY2025Full year

Full year

Full year

Net sales

35,50078,00085,000100,000

Operating income

1,160

3,780

4,400

5,500

Operating profit
margin

3.3％

4.8％

5.2%

5.5%

Ordinary income

1,020

3,780

4,400

5,500

700

2,450

2,850

3,450

Net income
attributableto owners of parent※It is expected that retail sales will increase as inbound demand returns in the fiscal year ending March 2025.

44

Sales plan
100,000(Millions of yen)

85,00078,00071,14857,51050,96040,212

43,19945,90350,72345,497
40,134FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

45

Operating Profit Plan
7.5

Operating Income
Margin (%)

7.2
6.1

5.2

3.6

4.8

5.2

5.5

3.7

2.1
0.5

1.2
5,500
4,400

2,999

3,129

Operating Income(Millions of yen)

3,714

3,780

2,789
1,625

832

1,860
297

590

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

46

Ordinary income/Net income Plan
5,500

Net income
attributableto owners ofparent(Millions of yen)

3,772

4,400

3,780
3,450

2,988

1,834

3,162

Ordinary
income

2,742

2,850
2,259

2,040
1,696

1,610

1,073

815

2,450

1,826
1,009
431△ 595

355
9 △ 234

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

47

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

48

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 growth①コアビジネス

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

49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

50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)51

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

52

１．Overview of Financial Results
for the Fiscal Year Ended March 31, 2022
２．Initiatives for the Fiscal Year
Ended March 31, 2022
３．Medium-term Management Plan
４．Shareholder return

５．Company Profile, etc.
53

Shareholder return
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

30.6

19.4

34.7
15.5

19.7
(planned)

Fiscal year-end dividendInterim dividend

5
7

7
5

7
7

8
8

10

9

22
15
11

14

15

15

15

16

14

15

15

15

16

20

8
16

8
8

22
12

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

54

１．Overview of Financial Results
for the Fiscal Year Ended March 31, 2022
２．Initiatives for the Fiscal Year
Ended March 31, 2022
３．Medium-term Management Plan
４．Shareholder return

５．Company Profile, etc.
55

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: 967 Non-consolidated: 16 (As of March 2022)

Business
activities

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

Fiscal year-end
Stock

March
Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)56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.
57

Corporate History●Acquired Eve Corporation Co.,Ltd.
●Established Auto Parts KOMEHYO(currently AUTO PARTS JAPAN)●Established KOMEHYO HONG KONG LIMITED●Transition to a holding
company structure●Opened the second
store in Bangkok,
Thailand● 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

2019

2020

●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●Acquired Four by four engineering service
Co.,Ltd●Retail store KOMEHYO opened in Bangkok,
Thailand●Acquired K-BRAND OFF Co.,Ltd and two
overseas subsidiaries

58

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".

59

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

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

60

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● Disseminating the reuse culture to other countries to deliver quality

used goods to the world● Introducing environmentally friendly shopping bags
● Expanding the reuse customer base in Japan and overseas

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

collaboration)● Improving engagement● Disseminating the culture of handing down goods from person to person, from Japan to the world● Creating an environment where goods can be purchased casually without worry● Cooperating with related government ministries and agencies and related organizations

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

61Corporate governance system

取締役(監査等委員を除く)
3名

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.

62Officer system

Name

Takuji Ishihara

Position

President andRepresentative
Director

Yuya Yamauchi

Kazutoshi Torita

Momoko Murase

Miyuki Minamiru

Director

Director (Audit andSupervisory
Committee Member)

Director (Audit andSupervisory
Committee Member)

Director (Audit andSupervisory
Committee Member)

Outside Director○○

Independence○○

LawyerCertifiedaccountant

Major skills
and careers

Toshio Sawada

Managing Director

MBA

Sales Division

Sales Division

Overall productcontrolMarketingVice President,
Japan Reuse
Affairs Association

Administration Officer,
Association Against
Counterfeit ProductDistribution

MarketingCorporate planning
Businessdevelopment

Corporate planning
Internal control

Tax accountant

63

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

64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.

65