Earnings Results
Briefing for the Second Quarterof the Fiscal Year Ending
March 31, 2024
November 14, 2023
Komehyo Holdings Co., Ltd.
Securities code: 2780
(Tokyo Stock Exchange and Nagoya Stock Exchange)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".

2

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 such products happy,
and by doing so, create an empathy-based recycling society.

We develop a concept of environmentally and socially conscious 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.

3Competitive Advantages of the KOMEHYO Holdings Group
Since its founding, the Group has consistently worked on reuse.
Developing Business with Three Competitive Advantages.

Talent retention
rate ofIn order to acquire a wealth of productknowledge and the ability to determine
authenticity, it is necessary to learn manythings while accumulating experience.
Komehyo Holdings has a staff retention
rate of over 90% for two consecutive years.
Since we provide many opportunities todevelop human resources and play an activerole,
we have a foundation for cultivating highly
specialized human resources without
wasting our investment

More than 1.7 million brands andfashion-related items handled by KOMEHYO
are available annually.
The entire group, including B2B auctions,distributes a large number of products.
By accumulating product data and customer
data, we are able to offer many attractive
products that meet customer expectations.

In addition to trust and security as theNo. 1 brand reuse company, we have thepower of a long-established brand that is
supported by a high degree ofrecognition.
As a market pioneer, we will contribute to
the realization of a sustainable society
through our business by accurately
grasping customer needs and providing
services that please many people.

*Source: Reuse Market Data Book 2022

4

Contents
1. Overview of Financial Results for First Six Months of
the Fiscal Year Ending March 31, 2024

P.６

2. Initiatives for First Six Months of the Fiscal YearEnding March 31, 2024

P.25

3. Future outlook

P.36

5

1. Overview of Financial Results for First Six Months of
the Fiscal Year Ending March 31, 2024

P.６

2. Initiatives for First Six Months of the Fiscal YearEnding March 31, 2024

P.25

3. Future outlook

P.36

6

FY 2024 2Q Financial Summary
Brand・Fashion busines

Tire and Wheel buisinessNet sales

Operating income

Purchase from individual customers

Net sales

Operating income

50,8003,125

28,9891,940

6Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen（YoY136.1％）（YoY180.4％）（YoY134.2％）（YoY103.1％）

（ー）

P.19

Increase in revenue and profit.

P.20,28

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

P.27,33

Twenty two purchase centers opened (of which five centers are franchise stores).

P.34

Accompanying strong individual purchases, corporate sales also performed well.

P.19,35
・The composition ratio of new summer tires with low profit margins has
increased, and the gross profit margin has declined.
・Used sasage operations at the product center have been streamlined, andYahoo! Auctions has been made more efficient.The listing rate for rosesignificantly to +38 points, and second-hand sales were strong.
・Domestic sales of in-house designed wheels were strong, 112% compared tothe same period last year, due to the success of active event exhibitions andawareness activities through SNS, etc.

7Brand fashion business 2Q progress
Purchasing was also strong in 2Q. Corporate purchasing remain strong, and was particularly noticeable with bags, as buyers sought to secure popular items while
maintaining well-balanced purchases. Although retail sales remained strong, with no significant increase or decrease in the number of visitors from overseas toJapan, the gross profit margin declined due to a change in the sales share ratio of merchandise.

The gross profit margin has declined due to changes in the sales composition of products, but this is within expectations.

Initial Plan

Purchase

1Q・Strong market prices for each product.
Purchase from individual customers：YoY122％
・Purchase (individual purchase・For items that are popular both in Japan and overseas, we will adjust the+ corporate purchase)：YoY 118%
purchase price and focus on purchases that are well-balanced, such as
・The market price for eachsecuring inventory.
product is flat or gently rising
・Existing stores are performing well due to purchase campaigns andpromotions.

２Q
・Individual purchases: YoY 134%
・Despite unstable diamond and watch market conditions, well-balanced
purchases continued to strengthen with a focus on retail-oriented products.
・Domestic retail gold prices exceeded 10,000 yen/g at the end of August, andjewelry purchases (KOMEHYO, BRAND OFF, and Selby) in September were up
YoY 203%.
・Duty-free sales: 104% compared to 1Q, continued steady growth・Corporate sales also increased more than expected due to strong individual
purchases. Corporate sales of gold bullion and watches increased in particular・Maintaining strong retail sales by making sure to stock popular products.
・Bags performed well, and the sales share ratio increased.

Net sales

Duty free sales were at the samelevel as the fourth quarter of lastyear.

・Duty-free sales increased 1.3 times from the previous 4Q.
・Respond to immediate inbound demand by enriching sales stores withattractive products, including active corporate purchases.
・Corporate sales also increased more than expected due to strong individual
purchases.

Gross profit
marginImprove gross profit margin byincreasing the ratio of retail sales
to sales・The ratio of retail sales to sales increased more than expected due toaggressive purchases, etc.
・In addition to the increase in the number of members, the overall sales ofreuse are strong, so the volume of the company's corporate auctions istrending favorably.

・Assumed the same level as 1Q, but down 2.1 pt.
・In bags, the gross profit margin declined due to an increase in the sales shareof popular products.
・Decline in diamond prices and an increase in the gold bullion ratio led to a lower
gross profit margin on corporate sales of jewelry.

Changes in selling,
general andadministrative
expenses

We will make active investments
to drive continuous growth inJapan and overseas.

Controlled almost as planned, including variable costs.

・Aggressive investment in human resources in anticipation of future businessexpansion.
・Controlled almost exactly as planned.

8Changes in average purchaser unit price by product（Komehyo Co., Ltd.）The unit purchase price per individual customer is on the rise, reflecting stronger sales of bags against the backdrop of inbound demand, clothing with astronger strategic focus on items with a high unit price, and aggressive purchasing of products for retails for jewelries and watches both. It is assumed thathigh-quality inventory will be secured and will contribute to the opening of "KOMEHYO SHIBUYA" stores in the third quarter and sales during the year-end
sales season. It is assumed that high-quality inventory will be secured and that the opening of KOMEHYO SHIBUYA stores in 3Q will contribute to sales during
the year-end sales season.
（YoY）
150%

FashionBag
All products
Watch
Jewelry100%

9

FY 2024 2Q Performance
Record sales and profit at every level in the 1H period.
(Millions of yen)

FY2024 1Q

YoY

FY2024 2Q

YoY

FY2024 1H

YoY

vs FY plan※

Net sales

25,096133.8%

27,667135.2%

52,764134.5%

49.8%

Gross profit

6,592

139.7%

6,698

131.5%

13,291135.5%ー

Gross profit margin

26.3% ＋1.1pt

24.2%△0.7pt25.2%＋0.2ptー

SG&A expenses

4,867

122.4%

5,212

127.5%

10,080125.0%ーOperating profit

1,724

233.2%

1,485

147.9%

3,210

184.1%

44.6%

Operating profit
margin

6.9% ＋3.0pt

5.4%＋0.5pt6.1%＋1.7ptーOrdinary profit

1,762

231.9%

1,508

158.9%

3,271

191.4%

45.2%

Net income attributableto owners of parent

1,183

227.9%

953

166.6%

2,137

195.8%

44.3%※ Earnings forecast announced on August 14, 2023

10

Operating profit increase and decrease factor
Net sales increased, reflecting enhanced purchasing of popular products from corporations in addition to strong purchases fromindividual customers. Operating income increased significantly as SG&A expenses progressed as planned.

(Millions of yen)

Increase in personnel expenses
such as salaries and allowances -902
Increase in G&A expenses suchas rent-588
Increase in selling expenses
such as advertising expenses-524

FY2024 1H

11Changes in selling, general and administrative expenses
Hiring and training was strengthened to secure the staff needed to open stores, resulting in higher personnel expenses.
The SG&A to net sales ratio declined as SG&A expenses progressed as planned in relation to net sales growth.
SG&A expenses to sales ratio(%)(Millions of yen)

10,0808,066－Selling expenses

7,089－G&A expenses－Personnel expenses

FY2022 2Q

FY2023 2Q

FY2024 2Q

12

Active investment in human resources（FY2024 1H Komehyo Co., Ltd.）
Promoting the creation of a rewarding work environment, including giving back to employees in line with business growth.
Aggressively invest in human resources, particularly in hiring and training, with a view to continued growth for the future.

Personnel expenses

YoY

122.3％

Recruitment cost

YoY

231.3％

Education and training expenses

YoY

156.8％*Not including personnel expenses for in-house instructors

Number of regular employees hired

YoY

182.1%

Recruitment cost per regular employee

YoY

127.0％*Recruitment cost per person: Recruitment cost/number of recruits

Education and training expenses per
regular employee

YoY

125.8％*Education and training expenses per employee: Education and training expenses/number ofregular employees

13Non-operating income(expenses) / Extraordinary income(losses)(Millions of yen)

Non-operating
expenses41
Interest
expenses32
Rent expenses
on store4
Other4Non-operating income101
Foreign exchange gain 53
Dividend income11
Interest income 8Other28Extraordinary losses66
Impairment losses39
Loss on retirement of
non-current assets26
Extraordinary
income 0
Gain on saleof non-current
assets014Balance sheet overview(Millions of yen)

FY2023

FY2024 1H

Change35,322

45,695

10,373

Cash and deposits

10,382

11,6891,306

Inventories

18,70525,837

7,132

Other current
assets

6,234

8,168

1,934

Non-current assets

11,43012,558

1,127

Assets

46,75358,254

11,501

Liabilities

22,50631,8559,349Interest-bearing
liabilities

16,49824,893

8,395

Other liabilities

6,007

6,962

954

Net assets

24,247

26,3982,151

Liabilities andnet Assets

46,75358,254

11,501

Current assets→Inventories increased due to strong
Individual purchases→Interest-bearing debt increased due to anincrease in inventories→Net assets increased due to an increase inretained earnings, etc.
15

Inventory Turnover（Brand・Fashion business）
Inventory was properly supplied and prices were adequately controlled by utilizing multiple sales channels while taking into account market prices and foreignexchange rates.This led to an improvement in the ratio of gross profit to inventory investment (gross profit margin multiplied by inventory turnover ratio),allowing the company to maintain a high level of fresh inventory.

Inventory turnover
period（DAY）

Inventories(Millions of yen )FY2022

FY2023

FY20241H
Gross profit margin①

26.3%

24.5%

24.8%

1H
inventory turnover②

3.3

3.6

3.6

1H
①✕②

86.8%

88.2%

89.3%

59

42

－

FY
Inventory write-down(Millions of yen )16Cash Flow trend
Operating cash flow decreased partly due to an increase in inventories in preparation for a busy season in the second half of the
fiscal year.
Purchase from individual customers were strong, short-term borrowings increased, and financing cash flow increased significantly.
Cash and cash equivalents

Cash flows
fromoperatingactivities↓(Millions of yen)

←Cash flows fromfinancing activities←Cash flows frominvesting activities

17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)

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

18

Overview by segment
In the Brand Fashion business, purchases from individuals and retail were strong.
In the Tire and Wheel business, only sales of new products performed solidly.

FY2024 1Q

YoY

FY2024 2Q

YoY

FY2024 2Q 1H

YoY

Net salesc

24,075135.3%

26,724136.9%

50,800136.1%

Operating income

1,683

230.5%

1,442

143.8%

3,125

180.4%

Operating margin

7.0%＋2.9pt5.4%＋0.3pt6.2%＋1.6ptNet salesc

1,009

106.5%

931

99.6%

1,940

103.1 %

Operating income

2

79.9%

△8

-

△6

-

Operating margin

0.2%△0.1pt--‐-Net salesc

71

100.1%

71

100.1%

143

100.1%

Operating income

21

100.0%

21

104.0%

43

102.0%

Operating margin

30.3%

‐

30.0%

＋1.2pt30.1％＋0.5pt(Millions of yen)

Brand
Fashion

Tire
and
Wheel

Real
estateleasing19

Purchase from individual customers (Group total)
In addition to an increase in the number of customers due to the continued opening of purchase center andother factors, the amount of purchases per customer remained strong. Record purchase price for the quarter.
Purchase from individual customers(Group total) (Millions of yen)

* 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 servicesKOMEHYO)

20

Breakdown of consolidated Net sales(Retail / Overseas/Domestic tax-free sales)【Retail】The retail ratio increased due to the strengthening of the retail business, achieving the ideal composition ratio（Retail: Corporate sales = 50:50）【Overseas】Overseas sales were also healthy following the transfer to Hong Kong and Taiwan, and new store openings.
【Domestic tax-free sales】Continued strong performance, up 104% from 1Q

Retail ratio

Overseas ratio

Domestic tax-free sale ratio

Overseas*Tax-free sale*

10.3%

Corporate
sales,etc*

FY2024 1H
Net sales

Retail

52,764（Millions of yen）

Domestic

12.0%

FY2024 1H
Net sales

FY2024 1H

52,764

Domestic sales（Millions of yen）

89.7%

Taxation
88.0%* "Corporate sales" includes auction fees.

* The ratio of overseas business does not include
domestic tax-free sales, etc.
*Total sales of overseas group companies* Calculated before eliminating internal transactions.

21

Breakdown of domestic duty-free sales【 Composition ratio by country/region 】Customers in China increased 8.4 pt from 1Q, accounting for nearly 80% of total customers in the top 5 countries.
【Percentage of purchasers by age group】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

Others21.0％
Thailand
4.6％
America

Domestic
duty-free sales(FY2024 1H)

China
43.4％

7.7％
Philippines
10.4％

Taiwan12.9％*Aggregated by issuing country/region from passports22Quarterly Trends in Consolidated Net Sales and Gross Profit Margin【Net sales】Sales increased in both retail and corporate sales due to strong individual purchases.
【 Gross Profit Margin 】In order to secure popular products such as bags, we also strengthened corporate purchasing with low gross profit margins.
Gross Profit
Margin(%)

Consolidated
Net Sales(Millions of yen)・Tend to rise as the composition ratio of retail sales increases

Factors behind fluctuations in gross profit

・The ratio of corporate sales is on the rise as inventory is revised in September and March.
・he figure may vary depending on the weightings of items that can be purchased.

23

Shareholder return
The policy is to aim for a dividend payout ratio of 20%. Taking into consideration the profit forecast level for the fiscal year ending March 31, 2024, the annual
dividend for the fiscal year ending March 31, 2024 was revised from the initial plan of 76 yen to 88 yen (an increase of 28 yen from the previous year).

payout ratio(%)( yen)

Fiscal year-end dividend（planned）

Interim dividend（planned）

24

1. Overview of Financial Results for First Six Months of
the Fiscal Year Ending March 31, 2024

P.６

2. Initiatives for First Six Months of the Fiscal YearEnding March 31, 2024

P.25

3. Future outlook

P.36

25

FY 2024 2Q Initiative Summary
B
r
a
n
d
・
F
a
s
hi
o
n

KOMEHYO

・Opened 11 purchasing stores. We are making progress in securing properties and expect to be able to achieve our full-year target of opening 30 to 40 stores.
・Although individual purchases continue to be strong, the large-scale purchasing store “KOMEHYO SHIBUYA” scheduled to open in November 2023, the year-end sales
season,As a result of strategically increasing corporate purchases in preparation for inbound demand,individual purchases: corporate purchases = 72%: 28%.
(corporate purchases increased by 6 points compared to the same period last year)
・The composition ratio of individual purchases of major products is jewelry/precious metals: watches: bags: clothing = 40:25:29:6 (%).
In particular, bags increased by 3 points compared to the same period last year.
・Due to strong individual purchases, we have been able to secure more inventory than retail stores, and as domestic retail gold prices remain high, corporate sales
have also increased more than expected.In particular, corporate sales of gold bullion and watches increased, with the composition ratio being retail: corporate sales =
41%: 59% (corporate sales increased by 2 points compared to the same period last year).
・Started partnership with flea market app "Rakuten Rakuma". As an inspection company, we will be providing "KOMEHYO Kantei" to an external party for the firsttime, contributing to the elimination of counterfeits in the second-hand market.The product inspection business is similar to the "market growth-related business,"which is the growth pillar of the brand and fashion business.

BRAND OFF

・Opened 3 purchasing stores (FC). The speed of store openings has slowed down as resources are prioritized for renovating and opening purchasing and sales storesin Japan and overseas. In the second half, we will continue to strengthen sales to major companies that are expected to open multiple stores.
・The flagship store BRAND OFF Ginza Main Store, which was relocated and opened in October 2022, and overseas stores in Hong Kong and Taiwan continue toperform well. We are proactively renovating retail stores and opening new stores in Japan and overseas to strengthen the creation of points of contact with newcustomers.

Corporate Auction(KOMEHYO Auction、JBA)

T
i
r
e
・
W
h
e
e
l

・Due to the increase in the number of member companies and the strong performance of JBA's real auctions, the combined trading volume of the two companies
reached a record high of 11,950 million yen (121% compared to the same period last year).

Craft

・The number of used items purchased at stores was 115% compared to the same period last year. We are able to secure high-quality stock of genuine manufacturer
products.
・Although the sales amount was the same as last year due to the increase in list prices, the number of units sold for each product decreased.

U-ICHIBAN
AUTO PARTS JAPAN・We revised our website and sales of summer tires increased significantly by 307% compared to the same period last year.
Contributing to an increase in used sales amount

4×4
engineering service

・Domestic sales of in-house designed wheels were strong, 112% compared to the same period of the previous year, due to the success of active event exhibitions andawareness activities through SNS.

26

Stores：Group total 201 stores（As of September 2023)*The figure in parentheses ( ) represents the increase during
the first quarter.
*USED MARKET converted to KOMEHYO brand

KOMEHYO is making progress in securing properties and is expected to achieve its full-year target of opening 30 to 40 stores. BRAND OFF is prioritizing resources torenovate and open purchasing and sales stores in Japan and overseas, so the speed of store openings has slowed down. In the second half, we will strengthen sales tomajor companies that are expected to open multiple stores.

Brand fashion

flagshipstore

5

3

Sales Stores

1(1)

0(-1)

Stores annexedwith sales facilities

18

0(-1)

Purchasing Center

104 ( 12 )

1
6

3

2

2

9(-1)

2

2

9

2

6

Franchised
purchasing center

21 ( 3 )Overseas

6

Total

134

BRAND OFF
KANAZAWA store

Tire and Wheel

120

Shellman GINZA store

44

7

WORM OSAKA

3

Craft NAKAGAWA store

SELBY OKACHIMACHI

27

Opening the purchase center
The amount of purchase per store remained strong. The store openings added 3.9 billion yen.(1.5 billion yen during the fiscal year) to the annual purchaseamount.Signboard effect from new store openings had a positive impact on existing stores.

In the 1H, 17 purchasing centers were opened.

Trends and plans forindividual purchases(Billions of yen)28

Product distribution（FY2024 1H）
YoY

YoY
▲2pt

▲6pt

Purchase fromindividual customers
Stores/Home delivery Purchasing/Purchasing at
Purchasing at visited sites

salequality/market/distribution

Purchasing
72％

KOMEHYO

41％

Merchandise center

RetailStore
WEB（company,Other company,live commerce）

events/Suitable for retail

Purchaseamount ratio

40％ 25％ 29％ 6％

YoY （±0pt） （▲3pt） （＋3pt） （＋1pt）

Purchase from
corporations
Supplementing individual purchases mainly for the
purpose of maintaining the attractiveness of stores

28％
YoY

+6pt

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.

・For corporations(antiques, unsuitable for retail, etc.)
・Large inventory・High market risk
・Activation of auctions

59％
YoY
＋2pt

Corporate sales
Auction（company,Other company）
Event
wholesale（domestic・overseas）
Live commerce29E-commerce-induced sales rate（FY2024 1H Komehyo Co., Ltd.）In addition to an increase in the number of customers, the per-customer spending rose, resulting in e-commerce-induced sales of 122% YoY, arecord high for the quarter. E-commerce-induced sales rate was at just under 40% due to rising sales ratio of visitors from overseas to Japanat retail storesE-commerce-induced sales rate (%)：
EC Sales as a Percentage of Retail Sales

3,064

2,814 2,803
2,333

2,512
2,197

2,856 2,619

2,640－KOMEHYO website

2,021－Back orders

EC-induced sales（millions of yen）

－Others*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 ta 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.

30

Partnered with CtoC platform Rakuten Rakuma（FY2024 1H Komehyo Co., Ltd.）In partnership with Rakuten RAKUMA, a flea market application, the two companies have agreed to jointly provide a "RAKUMA Appraisal Service"on a trial basis from September 2023, allowing users who have purchased an item to request an inspection*1 as needed. First external provisionof "KOMEHYO Kantei "*2 as an inspection provider.

✕
CtoC platform

Connoisseurship and highly accurate AI

・Working to eliminate counterfeit goods in the usedgoods market, provide safe reuse services and create ahealthy reuse market
・Aiming to create a new business model that will
revitalize partner services and enhance the value of thereuse experience*1 "inspection" is used to describe the judgment that an item is "within standard" if it does not have any problems according to KOMEHYO standards, and "outside standard" if it does
not meet the standards.
*2 Name of KOMEHYO's inspection service used since the operation of KANTE, a flea market app that KOMEHYO operated until December 2022.

31

BRAND OFF Strengthen retail‣Strengthening retail
The flagship BRAND OFF Ginza main store, which relocated and opened in October 2022, as well as stores in Hong Kong and Taiwan
continue to perform well.
Renovate retail stores in Japan and overseas and open new stores to strengthen contacts with new customers

July 2023
Renovation of BRAND OFF Osu Store (Japan)

September 2023
Renovation of BRAND OFF Sheung Shui Store (Hong Kong)

October 2023
Newly opened BRAND OFF Kanazawa Forus Store (Japan)".

32

BRAND OFF FC purchase store opened▶Continue opening franchise stores

Planning to open 40 stores in FY03/24.

Items purchased at franchise purchase centers are put to auction (JBA). The trade volume thus increases.

Product commercialization

Generalcustomers
General customers

FC
Exhibit
General customers

General customers・
Corporation

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

Corporation

Opened 5 franchise purchase center in 1H. (Target ratio: 13%)
・BRAND OFF Ginza main store, JBA, and Hong Kong and Taiwan stores performed well.
Prioritizing resources for retail store renovations and store openings.
・Focusing on continuous growth after store opening, it takes time to discuss with FC owners.
Zero closures due to unprofitability of opened franchise stores.
・Strengthening the support system for FC owners to increase the purchase amount per FC that has already opened.
・Strengthening sales to large companies that are expected to open multiple stores.

33

Corporate auction volume
JBA auctions, particularly offline auctions in Kanazawa, displayed strength due mainly to an increase in the number of registered members.
The total trading volume of corporate auctions increased 121% year on year, hitting a record high.

Number of registered menmbers

Trade volume(Millions of yen)34

Tire and Wheel
Strengthening of used product sales and strong online sales of summer tires.

AUTO PARTS JAPAN・The number of used purchases at Kraft stores wasstrong, up 115% YoY. Good quality inventories ofgenuine manufacturer's products are secured.
・The sales amount was on par with the previous
year following the fixed price increase, but the
number of orders received declined 91% YoY.

・Sales of summer tires increased by 307%
year-on-year due to a review of the web page.
・The old product preparing operations (photoshoot,measuring, and writing articles for them) at thecommodity center have been streamlined. The ratio of
product offerings to Yahoo Auction rose a sharp 38
pts.

・Domestic sales grew 112% YoY, thanks toactive participation in events and publicity
through social media, etc.
・Released "VULCAN", the third in the Air/G
series of in-house designed wheels.

35

1. Overview of Financial Results for First Six Months of
the Fiscal Year Ending March 31, 2024

P.６

2. Initiatives for First Six Months of the Fiscal YearEnding March 31, 2024

P.25

3. Future outlook

P.36

36

Medium-term management target(Until FY2026)
For the fiscal year ending March 31, 2024, the performance forecast as of August 14 will remain unchanged as the results of
the 3Q will have a significant impact on the full-year results.
Plans for fiscal year ending March 31, 2025 onwards will be announced again in May 2024.

FY2024(millions of yen)first half

full year

FY2025

FY2026full year

full year

Net sales

51,000106,000

120,000

140,000

Operating income

3,200

7,200

7,000

8,100

Operating margin

6.3%

6.8%

5.8%

5.8%

Ordinary income

3,250

7,230

7,000

8,100

Net income attributableto owners of parent

2,200

4,820

4,800

5,600

ROE

ー

15% or more

15% or more

15% or more

Capitaladequacyー

50% or more

50% or more

50% or more

EPS（yen）

ー

440

438

511

payout ratioー

Aim for 20%

Aim for 20%

Aim for 20%

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Brand and Fashion business 2H assumption
Based on the forecasted market trend of mainstay products, we expect purchasing and net sales to remain steady in 2H,
and gross profit margin to be in line with our plan.
The forecasted market trend of mainstay products,

Forecast for 2H

Jewelry
The diamond market continues to be unstable. The
domestic gold market is expected to maintain highprices mainly due to the effect of a weaker yen.
Brand-name jewelry is expected to continue its upward
trend in market prices linked to changes in list prices.

Purchase・Continue to strengthen purchasing with an emphasis on inventory
content for both individual purchases and corporate purchases. Continue
to strengthen corporate purchasing, especially of products for retail・The value of individual purchases is expected to remain strong given
the effects of new store openings and the continuing upward trend in
per-customer spending.

Sales・Both retail and corporate sales are expected to be favorable,
leveraging ample inventory.
・YoY sales are expected to ease due to the effect of the opening ofGinza Store (KOMEHYO and BRAND OFF) and a lull in inbound demand

Watch
The market is unstable as it continues to be influenced
by the global economic environment. Retail-oriented
products are trending steadily upward toward the endof the year as the market has not declined. Market
prices are expected to remain flat after January 2024.

Bag
Market prices for popular brands and items are
expected to remain high. Overall bag prices are
expected to remain flat as market prices have calmed
down, with the exception of certain products.

FashionMarket prices for luxury brand fashion items continue
to rise as demand for higher-priced items continues torise. Overall apparel is expected to remain flat toslightly rising.

・Since the company will continue to focus on expanding its market share
Gross profit and actively purchase products, it is likely to remain at the same level as
the previous year, assuming no sudden changes in the external
marginenvironment and no impact from the timing of snowfall.

Operatingincome・Rent will increase due to the opening of KOMEHYO SHIBUYA/purchasespecialty store. Furthermore, we will continue to invest mainly inrecruiting and training human resources.
・We expect to be able to secure the target operating income while using
the expenses necessary for continued growth.

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Opening of large store “KOMEHYO SHIBUYA”
KOMEHYO SHIBUYA, a large-scale sales store with purchase attached, will open on November 17, 2023. Strengthening of retail sales on the back ofstrong purchases. Targeting domestic and international fashion connoisseurs, mainly Generation Z and Y, the company deals mainly in fashion items
such as clothing and bags.

KOMEHYO SHIBUYA
NEW
OPEN

location：1-4F Shibuya ZERO GATE, 16-9 Udagawa-cho, Shibuya-ku, TokyoStore area：733㎡
Products handled: Bags, fashion, jewelry/precious metals, watches

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Future overseas expansion
To prepare for growth in Japan and business expansion in overseas cities and areas, the two consolidated subsidiaries in Hong Kong arescheduled to be integrated in March 2024. With the aim of bolstering Hong Kong's local brand fashion business and accelerating thedevelopment of the overseas reuse market by fulfilling a merchandising function that effectively utilizes resources on a global basis, witha focus on Asia.
Purchase
Japan (toC・toB）

Hong Kong new company(to be integrated in March 2024,
company name to be determined)

Sale
Hong Kong (toC・toB）● Strengthen the brand and fashion businesswith a focus on Hong Kong
Operation of KOMEHYO BRAND OFF stores

Overseas (toC・toB）● Supervision of overseas operating companies
in Asia area
Expansion and development through multi-brand channels

Other overseas countries(toC・toB）● Establishment of product center function inoverseas businessHong Kong, Shanghai,
Thailand,Taiwan, Singapore

Purchases will be strong both domesticallyand internationally. An increase in the volume
of material is expected in the future.

Taking advantage of Hong Kong's freeport advantage,
products purchased from various overseas cities and areas
are accumulated. As in Japan, appraisers are assigned toperform authenticity checks and maintenance as needed. In
addition, the company acts as an inventory coordinating
valve, supplying the most appropriate products according
to the needs and inventory conditions in each city andtown.

Shanghai, Thailand, Taiwan,
Singapore, Japan40

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, and opinions 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 their own discretion.

This document was prepared by Komehyo Holdings, Inc. and all rights to its contents are reserved by the Company.
Please refrain from any use (copying, unauthorized reproduction, etc.) beyond the scope permitted by law.

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