Earnings Results Briefing
for the Fiscal Year
Ended March 31, 2019
May 2019

KOMEHYO Co., Ltd.
Securities code: 2780
(Second Section, Tokyo and Nagoya Stock Exchanges)
Corporate Planning Department IR strategy group
TEL:+81-52-249-5366

INDEX
１．Overview of Financial Results for the Fiscal Year
Ended March 31, 2019

P. 02

２．Business status

P. 14

３．Plan for the Fiscal Year Ending March 31, 2020

P. 26

４．Medium-term Management Plan

P. 36

５．Reference Information (Company Profile, etc.)

P. 48

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 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.

1

FY 2019 Financial Summary
Performance Highlights (Consolidated)
Net Sales
50,960 million yen, 1.1 times Year on Year
Operating income
1,860 million yen, 1.1 times Year on Year
Ordinary profit
1,826 million yen, 1.1 times Year on YearNet income attributable to owners of parent company
１,009 million yen, 0.9 times Year on Year
(Extraordinary income of 76 million yen : Previous year)

Business Topics
Record purchase price of 21,000 million yen
Acquisition of new customers through five purchasing events
The first overseas store opened in Beijing in September 2018.
2

Economic Trend
While the economic environment remains on a moderate recovery path,
uncertainty is growing in the global economy.
Net sales YoY
(%)

140

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

Stock Price（yen）

24,000130
22,000120

20,000110

18,000

100
100

90

16,000FY2019(Source：JAPAN DEPARTMENT STORES ASSOCIATION website)

14,0003Overview of Income Statement(Consolidated)
FY2017(‘16.4-’17.3)

FY2018(‘17.4-’18.3)

FY2019(‘18.4-’19.3)

Net sales

40,13445,49750,960＋5,462112.0％

Gross profit

11,144

12,968

13,796＋828

106.4％

Gross profit
margin

27.8％

28.5％

27.1％

△1.4pt－SG&A expenses

10,312

11,342

11,936＋594

105.2％

Operatingincome

832

1,625

1,860

＋234

114.4％

Ordinary
income

815

1,610

1,826

＋215

113.4％Net income
attributableto owners of parent

355

1,073

1,009

△64

94.0％

(Millions of yen)

ChangeYoY

4

Net sales(Consolidated)
Net sales(Millions of yen)

Brand Fashion

Tire and Wheel

50,00040,21240,00030,00043,199Others45,90350,96045,497

40,13434,36828,91420,00010,0000FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY20195

Profit Margin Trend(Consolidated)
Gross profit margin

(%)

35
30

30.9

SG&A expenses to sales ratio

31.4

30.5

28.1

28.5

Operating income margin

27.8

28.5

25.7

24.9

27.1

25
20

23.4

24.8

23.9

23.2

7.5

7.2

22.4

23.4

15

10

4.7

6.1

6.1
2.1

5

3.6

3.7

FY2018FY20190

FY2012FY2013

FY2014FY2015FY2016FY2017

6

SG&A expenses(Consolidated)(Millions of yen)

Selling expenses

Personal expenses

Administrative expenses

12,000

9,627

10,0008,000

10,038

10,271

10,312FY2015FY2016FY2017

11,342

11,936

8,518
6,765

6,000

4,000

2,000

0

FY2012FY2013

FY2014FY2018FY20197

Operating Income(Consolidated)
Operating Income(Millions of yen)

Brand Fashion]

Tire and Wheel

2,999

OthersOperating income margin

Operating Income
Margin (%)

3,129

10

2,789

3,000

8

2,500

2,103

2,000

1,368

7.5

1,860

7.2

6.1

1,625

6.1

6

1,500

4

4.7

832

1,000

3.6

3.7
2

500

2.1
0

0

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY20198

ROA and ROE(Consolidated)
(%)

ROA

15

13.7

10.7

12.9

ROE

13.2

12.8

11.1

10
7.2

9.7

9.7
6.1

5

6.2

3.3

5.8

6.3

5.2

2.0

0

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY20199

Operating income increase anddecrease factor (Consolidated)

Operating income increased due to an increase in net sales(Millions of yen)
3,000

Gross Profit margindecrease△728

Sales amount

2,500

increase ＋1,557
2,000

1,500

SG&A Expenses
increase △593

1,860
1,625

1,000

Selling expenses△343
Personal expenses △220
Administrative expenses
△30

500
0

FY2018Operating income（＋234）

FY201910

Overview of Balance Sheet(Consolidated)
Increase in Net assets by opening new stores and grouping Shellman(Millions of yen)

Total assets
27,147

Total assets
30,507

Liabilities and Net Assets
27,147

Cash and deposits
Cash and deposits

5,487

Products
10,873
Other current assets
3,381

Current Liabilities
Current Liabilities
5,363

3,914

Liabilities and Net Assets
30,507

Products

Non-current liabilities

11,530

2,866

6,528
Non-current liabilities
4,178

Other current assets
3,397

Non-current assets

Non-current assets

8,978

10,092FY2018FY2019Net assets

Net assets

18,91819,800FY2018FY201911

Statement of Cash Flows(Consolidated)
Increased Cash flows from financing activities due to increase investments(Millions of yen)

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Cash and cash equivalents

4,257
3,322

4,769
3,886

2,855
1,715

1,499

536

△ 575 △ 466

6,086

△ 777
△ 1,091

1,447

2,113

505

△ 700

△ 107

△ 1,393△ 2,239

FY2015FY2016FY2017FY2018FY201912

By Segment(Millions of yen)

FY2017FY2018FY2019ChangeYoY

Brand
FashionTire and
Wheel
Others

Net sales

35,396

40,61846,377＋5,758114.2％

Operatingincome

692

1,476

1,730

＋253

117.2％

Operatingmargin

2.0％

3.6％

3.7％

＋0.1Pt－Net sales

4,645

4,787

4,507

△280

94.1％

Operatingincome

113

95

95

+0

100.4％

Operatingmargin

2.4％

2.0％

2.1％

+0.1pt－Net sales

137

146

122

△24

83.6％

Operatingincome

26

53

34

△19

64.4％

Operatingmargin

19.2％

36.6％

28.2％

△8.4pt－13

１．Overview of Financial Results for the Fiscal Year
Ended March 31, 2019

P. 02

２．Business status

P. 14

３．Plan for the Fiscal Year Ending March 31, 2020

P. 26

４．Medium-term Management Plan

P. 36

５．Reference Information (Company Profile, etc.)

P. 48

14

Brand･Fashion Initiatives 1
FY2019 Target
KOMEHYO
１．Enhancement of purchases from individual customers
・Increase in purchases of used goods from customers
at existing stores (mainly at 3 large stores)
・Store open for purchases
・Expansion of services entailing staff visits tocustomer locations for the purchase of used goods
from them in the Kanto, Kansai and Chubu areas
２．Enhancement of online sales andpurchases of used goods from customers
・Continued strengthening of measures
at stores relating to shipment between
stores of products requested by customers
・Improvement of sales ratios involving EC・Enhancement of alliances relating tohome-visit purchasing of used goods from customers
３．Enhancement of profitability
・Improvement of operating margin
・Enhancement of inventory controls
・Enhancement of cost controls

KOMEHYO Auction
Precious stones, watches and bags: 2 auctions
scheduled per month (From June 2018)

Results, etc.

→Approx. 130% Year on Year purchase price of large stores(Umeda/Meieki/Shinjuku ANNEX)→Opening of 4 stores specializing in purchasing→Approx 300 million yen in actual sales→Approximately 105% Year on Year→+ 1.4 points Year on Year→16 business partners→Brand Fashion Business: + 0.1 pt→Non-consolidated: 167 million yen increase over the previous year
→Non-consolidated: SG & A expenses ratio of △1.9 pt→2 times a month from June 2018
Volume: Approx. 127% Year on Year

15

Purchases from individual customers
Record amount of individual purchases through new store openings and various measures
Amount of purchasefrom individual
customers(Millions of yen)

FY2017FY2018FY2019ChangeYoYpurchase center

15,92718,00920,109＋2,099111.7％

Home delivery
Purchasing

789

906

957

＋50

105.6％

16,717

18,916

21,067＋2,150111.4％

Total

16

Purchase event
Partial amendment of the Secondhand Articles Dealer Act,we went to "Customer's usual location" to make reuse more accessible.

Event Partners

interphase

Hoshigaoka Terrace

2018.6.13 – 7.9

Komeda Coffee Honten

2018.10.28 – 11.11

Hoshigaoka Terrace

2019.1.9 － 1.31

TAKASHIMAYA Gate Tower Mall

2019.1.30 – 2.26

Porester Ichinomiya

2019.2.2

Percentage of new customers

49%

76%

44%

60%

100%

17

New Store : the purchasing center
Purchase Center Toyota
Purchase Center Kyodo Nodai Street
Purchase Center Mukogaoka-Yuen Station
Purchase Center Hoshigaoka Terrace
Purchase Center Shin-Koiwa

Location

Opening dateToyota City,Aichi Prefecture

Oct 2018

Setagaya-ku Tokyo

Nov 2018

Kawasaki City, Kanagawa Prefecture

Dec 2018

Nagoya City, Aichi Prefecture

Mar 2019

Katsushika-ku Tokyo

May 2019(planned)[Purchase Center Hoshigaoka Terrace]18

E-commerce-induced sales“Buy Online and Pick up in Store,” connecting brick-and-mortar stores with e-commerce sites,is on an upward trend(Millions of yen)

FY2017FY2018FY2019Net sales
YoY

No. of products sold
YoY

E-commerce-induced sales

6,147

7,594

8,119

106.9％

107.1％

E-commerce-induced
sales rate

25.7%

27.9％

29.3％

－

－

【 Percentage of online sales by channel (FY2019)】(Million of yen) 【Online sales trend by channel】

17.2%

20.8%

KOMEHYO

10,000website

8,000

KOMEHYO website

Back orders

OthersBack orders
6,000

Others

62.0%

4,000

3,683

4,778

5,030

FY2018FY20192,000
0*EC Sales as a Percentage of Retail Sales

FY201719

Customer Management
Integrated management of customer information , covering physical and online stores
Card members(FY2019)

No.

YoY

Total members

860,000

108.6%【 Customer management 】
Management of visit history of card-holding
members, including store visit dates, stores
visited, products purchased, and amounts interms of used goods purchased from them
Provision of information on events including
sales alongside product shipment statuses
via directly-mailed materials, telephone calls
and so on

Sales
store

Purchasing
CenterOnlineStore

Home
delivery
Purchasing

20

Sales to corporate customers
KOMEHYO Auction Distribution Value Expansion Trend
Trade volume(Millions of yen)

FY201923,200YoY
126.9%【Transition of auction distribution amountfor domestic corporations】

No. of member
companies
942※112companies
increased this term

【Auctions are held twice a month】
Since June 2018, we have been holding jewelry, watch andbag auctions twice a month to strengthen profitability(100 million yen)

232
183
155

FY2017FY2018FY201921

Talent Development
Systematic training of appraisers who are capable of judging
Total No. of appraisers

Total No. of VMD masters（Internal qualification）
and VMD instructors（National qualification）

FY2019355 persons

90 persons

YoY Change+ 26 persons± 0 persons[KOMEHYO appraiser]
Systematic development curriculum for appraisers
Appraisers assess on the spot
Market systems that allow inventory and distribution
to be monitored are supported.

22

Talented person fixation degree
Staff turnover remained low , improving the stability of the work force
Turnoverrate（％）The No. of employees（Brand-Fashion)
Turnover rate

30

General regular workers(except part-time workers)(Ministry of Health,Laver and Welfare)

The No. of
employees

487
520

451

25

535

548

383
20
15

307
12.9

290
11.3

323
11.7

400

345

11.5

12.4

500

300
12.2

11.8

11.4

11.6
200

10

8.8

5

100

5.8

5.0

3.6

0

10.3

11.3

12.3

13.3

5.2
14.3

3.2
15.3

4.5

3.9

4.6

16.3

17.3

18.3

3.0
19.3

0

23

Brand ･ Fashion business Initiatives 2
19.3 Target
KOMEHYO HONG KONG LIMITED
Overseas business management
Expansion of B-to-B business in Hong Kong
（Auction , Jewelry show）

BEIJING HUAXIA KOMEHYO LIMITED
Expansion of B-to-C business with a focus on Beijing
KOMEHYO SHANGHAI LIMITED
Development of B-to-B business targeting the Chinese
mainland in Shanghai
SAHA KOMEHYO COMPANY LIMITED (THAI)
Eve Corporation
Enhancement of sales for imported apparel,sneakers and so on alongside the purchaseof such used goods from customers
ShellmanImport and sale of antique watches and antique jewelry
Development and sales of original watches

Results, etc.
→Net sales of 1.74 billion yen(Approx. 122% Year on Year )→Retail store “LuxStory” toopen a branch in Beijing
in September 2018
→Scheduled to open in June 2019
(Resident Representative)→Joint venture established in December 2018
The office opened in January 2019
(Resident Representative)→In August 2018 sneaker shop
(WORM TOKYO) to the relocatedto Harajuku Jingumae area

→Added to Group companies in November 201824

Tire and wheel business Initiatives
FY2019 Target
Craft, AUTO PARTS JAPAN１．Enhancement of online sales and→Function consolidation at Auto Parts Japan
Aiming to Second-hand goods shop ｢U-ICHIBAN｣

Results, etc.

→Two of the Craft stores were converted to「U-ICHIBAN」
in April 2018
Two of the Craft stores were converted to「U-ICHIBAN」
in April 2019

２．Enhancement of EC sales→106.8% increase in net sales over the previous year
３．Enhancement of profitability→Operating income margin + 0.1 points「URBAN OFF CRAFT」is added to one of the Craft in July 2018
「URBAN OFF CRAFT」is added to two of the Craft in February 201925

１．Overview of Financial Results for the Fiscal Year
Ended March 31, 2019

P. 02

２．Business status

P. 14

３．Plan for the Fiscal Year Ending March 31, 2020

P. 26

４．Medium-term Management Plan

P. 36

５．Reference Information (Company Profile, etc.)

P. 48

26

Fiscal 2020 Plan
(Consolidated)
Higher costs due to business expansion are expected to result in higher sales and lower profits(Millions of yen)

FY2020
1H planYoY

Net sales

27,000115.8%

56,400110.7%

Operating income

458

93.5％

1,329

71.4%

Ordinary income

427

85.7％

1,261

69.0%

Net income
attributableto owners of parent

243

75.6％

727

72.0%

FY2020 plan

YoY*"Shinjyuku WATCH store" Expected to decrease due to rent increase due to opening of newstore, personal expensive increase due to business expansion, etc.

27Group structure (‘19.5)
KOMEHYO

KOMEHYO
AuctionB2B Auction Business
BtoB
Auction business

KOMEHYOSHANGHAILIMITED(CHINA)
Product supply
to Beijing

KOMEHYO
HONG KONG
LIMITED

Brand Reuse Businessretail store operation"KOMEHYO" "LINK SMILE" "USED MARKET"

Eve
Corporation

Shellman

Craft

AUTO
Parts
Japan

Four by fourEngineering
Services

BtoB
Global businesssupervision

Apparel business,
Sneakers business,
Shoes care business

Antique watch,
Antique jewelrybusiness

Tire･ wheel business
Operation of sales
store ’Craft’

Tire･ wheel business
Operation of sales
store ’U-ICHIBAN’

Tire・Wheel business
Planning of automobile
Parts, R&D ,manufacturing, etc.

BEIJINGHUAXIA
KOMEHYO
LIMITEDSAHA
KOMEHYOCOMPANY
LIMITEDNJKP(CHINA)【JV】
Operation of sales
store ’LuxStory’(THAI)【JV】(HONG KONG)【JV】
Diamond auction

Brand・Fashion business
Tire and Wheel business

28

Brand・Fashion Business
Aim to capture the top market share and expand GMV (total amount of distribution)

1． Strengthening Individual Purchase↑*Promoting Alliance and Purchasing Events
Net*Continue to open stores specializing in purchasingsales
2． Strengthening the Corporate Business*Expanding GMV (total amount of distribution): Focusing on KOMEHYO Auctions
3． Strengthen product management functions*Establish operations to ensure growth in Global Value Volumes(total amount of distribution)
4． Strengthening the EC*Omni Channel (Cooperation between EC sites and stores)→Enrichment of EC sites, use of marketplaces, promotion of promotions
5． Strengthening IT and DT (Data Technology)*Use of data obtained from GMV (total amount of distribution) anduse of AI to determine authenticity
6． Human resource development*Education for appraisers, education and training for each level
7． New business*Challenge to new businesses, including overseas businesses【Growth image】
New businessCorporate sales

Retail→Future29

Brand ･ Fashion Businessrelocation plan for the Shinjuku area
Shinjyuku store

Shinjyuku store
ANNEX

Shinjyuku WATCH store‘19.2

Jewelry, precious metals,
watches, bags,
lady’s clothing,
Purchasing Center

men’s bags,
men’s clothing,
Purchasing Center‘19.5

Jewelry, precious metals,
bags, lady’s clothing,
Purchasing Center

men’s bags,
men’s clothing,
Purchasing Center

New open

ClosedRenewal open

Renewal open

‘20.2
(planned)30

Brand・Fashion Business Structure
purchase

sale

1

3

GeneralCustomer

GeneralCustomer2

corporation

KOMEHYO
KOMEHYO Auction
KOMEHYO HONG KONG
KOMEHYO SHANGHAI LIMITEDBEIJING HUAXIA KOMEHYO
LIMITED4

corporation

31Brand・Fashion Business
Purchase (KOMEHYO)
Strengthening purchase from general customers
1.KAITORI GO (Alliances and Events)
Establishment of specialized departments,
department stores, etc.
Focusing on alliances and events withother companies

1
GeneralCustomer
Home delivery
Purchasing
Going to customer'shouse and purchasing

2

Alliances purchasecorporation

corporate purchase2.Continue to open stores specializing inpurchasing

32

Brand・Fashion Business
Commercialize (KOMEHYO)
Respond to increases in the volume of products purchased and purchased
Main functions of Product Center
１．Thorough confirmation of product authenticity/quality
２．Market price management
３．Maintenance
４．Product development speed/cost management
５．Stable/appropriate supply of products to stores

33

Brand・Fashion Business
Sales (KOMEHYO)
Strengthen sales to corporate clients through auctions
1.Strengthen sales to corporate
customers
2.Strengthen KOMEHYO auctions
Continue to hold two tournaments

3
GeneralCustomer
KOMEHYOONLINE STORE

Alliance
corporate sales

4
corporation
KOMEHYO
HONG KONG

34

Tire and wheel Business
Strengthen profitability by strengthening used products and highly specialized sales channels
1． Strengthening store profitability*Stores specializing in used tires and wheels: "U-ICHIBAN"*Strengthen specialized sales channels: "URBAN OFF CRAFT", "EURO style Craft"
2． Strengthening the EC*Expanding sales channels for e-commerce sites*Use of SNS (LINE, instagram)
3． New Initiatives*Planning, R & D, manufacturing, etc.,
of automotive parts35

１．Overview of Financial Results for the Fiscal Year
Ended March 31, 2019

P. 02

２．Business status

P. 14

３．Plan for the Fiscal Year Ending March 31, 2020

P. 26

４．Medium-term Management Plan

P. 36

５．Reference Information (Company Profile, etc.)

P. 48

36

Reuse market growth rate
The reuse market continues to grow each year
(100 million yen)

30,000Market Size Comparison

Reuse market size (’17)
30,000(The Reuse Business Journal estimation)
25,000of New and Reuse(’16)

26,00020,00019,932

15,00010,00013,594

14,916

15,966 16,517

17,743To the new product market

4.41%

5,000
0

12

13

14

15

16

17

Source: Estimated The Reuse Business Journal (dated May 11, 2019)20

22※Branded products, apparel, accessories,
home appliances, furniture, books, games, toys,
sporting goods, car accessories

Source: The Reuse Business Journal Secondhand Business Data Book 201837

Reuse market size
Online Sales Drive Market Growth
Reuse market size(‘17) 1.9 trillion yen (The Reuse Business Journal estimation)【Reuse Markets (B to C)】(100 million yen)Store-based sales

online sales

Store-based sales

10,0009,763
C to C
6,905
B to C
9,240(Composition ratio 34.6%)

online sales

8,000

9,460

9,315

6,000

(Composition ratio 46.4%)

4,000

B to C
3,317(Composition ratio 16.6%)

Others: Unknown: 470 (Composition ratio 2.4%)

9,240

2,158

2,502

2,862

3,317

2,000
0

2014

2015

2016

2017

Reference: Estimate based on The Reuse Business Journal Secondhand Business Data Book 2018 and estimated recycling communications(dated May 11, 2019)38

Medium-Term Basic Objectives(Consolidated)
Aim for medium- to long-term growth through strategic investment(Millions of yen)

FY2020

FY2021

FY2022(‘19.4-’20.3)(’20.4-’21.3)(’21.4-’22.3)

Net sales

56,40062,30068,000Operating income

1,329

2,210

2,630

Operating margin

2.4%

3.5%

3.9%
39

Net Sales Plan (Consolidated)
Generate JPY68 billion on a consolidated in the fiscal year ending March 31, 2022
(Millions of yen)

68,00062,30056,40050,96045,497FY2018 results

FY2019 results

FY2020 plan

FY2021 plan

FY2022 plan

40

Profit Plan (Consolidated)
Aim for medium- to long-term growth through strategic investment
Operating income

Ordinary income

Net income attributable to owners of parent
2,630 2,630(Millions of yen)

2,210 2,170
1,860 1,826

1,700

1,625 1,610
1,370

1,329 1,261
1,073

1,009
727

FY2018 results

FY2019 results

FY2020 plan

FY2021 plan

FY2022 plan41

Three key themes formid- and long-term growth strategy

Purchase

KOMEHYO
GROUP

Global

Reuse
Tech
42

Purchase KAITORI GO
Established a specialized department to focus on alliances with other companies and events【Joint purchase events with other companies】

Customers feel when selling unwanted goods"Do they really sell?"With psychological hurdles such as "It is difficult to go to
the purchase shop."In order to achieve this, we use the expression "GO" andwe hope that KOMEHYO will visit customers' usual places
and feel that reuse is a casual activity.

43

Global
Aim to expand reuse business overseas

BEI JING
HONG KONG

North America

Bangkok

SHANG HAISoutheast
Asia

Cities that alreadyhave a presence
Under
investigation
44

Reuse Tech AI authenticity
Data Technology — Leverage the vast amount of data in your enterprise【Purpose of introducing AI】

Efficiency of thepurchase process

More efficient
education forappraisers

Enhancecommunication withcustomers

Global Expansion*To be introduced in FY 201945

Reuse Tech Omni-channel
Promotion of omni-channel linking stores and the Internet
introduction at the store
App
Back order service

Store
KOMEHYOWEB

LINK SMILE

ONLINE STOREUSED MARKET

Back order service【Advantages of ordering】
In order to check the product visually,
You can purchase with a sense of security andsatisfaction.
【Unit price for back order】
About 2 ~ 3 times more mail-order sales
through its own sites

46

Reuse Tech Free market app
Solving social problems such as the distribution of illegal products with the ability to appraise them【Free market app specializing in brand- name products：KANTE】
Providing purchasers with a sense ofassurance through judgment of authenticity

Proportion of persons using expert
opinion('19.3)
transaction cancellation rate
5% (*)

No needforappraisal
24%

Need forAppraisal gives buyers peace of mind

appraisal
76%

Nurturing a healthy culture of reuse *Not only inappropriate items, but also missing accessories, wrong listing information, anditems not subject to appraisal are included.

47

１．Overview of Financial Results for the Fiscal Year
Ended March 31, 2019

P. 02

２．Business status

P. 14

３．Plan for the Fiscal Year Ending March 31, 2020

P. 26

４．Medium-term Management Plan

P. 36

５．Reference Information (Company Profile, etc.)

P. 48

48

Corporate Profile
Company name

KOMEHYO Co., Ltd.

EstablishedMay 1979

Head Office

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

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

No. ofemployees

Consolidated: 689 (As of March 2019)

Business
activities

Buying and selling used and new products including jewelry, precious metals, watches,bags, clothing, kimonos, cameras, and musical instruments, as well as real estateleasing

Fiscal year-end
Stock

March
Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)49Management philosophy
Founding spirit:
Buy high and products gather.
Sell low and people gather.
Management philosophy:
We help customers build affluent lives.
We create a fair, positive, and rewarding workplace.
We develop human resources who respond to changes andcontinue to challenge themselves.
We aim to achieve continued growth and development bycontributing to society with honesty and trust.

Corporate philosophy:
To please and inspire our customers through our core
concept of relay use

50Corporate History●Opened Purchasing Center Yurakucho､
Ikebukuro-nishiguchi、tachikawaｰkitaguchi●Opened Jiyugaoka store●Established Auto Parts KOMEHYO KK(currently AUTO PARTS JAPAN)●Established KOMEHYO HONG KONG LIMITED●Acquired CRAFT Co., Ltd.
●Established Product Center●Established KOMEHYO Auction●Opened KOMEHYO Shoten,
a 5-tsubo used clothing store, in Osu, Nagoya

1979

1987

1996

2000

2003

2004

2005

2011

2012

2013

2015

2017

2018

●Opened Ginza Store●Opened Shinjuku Store,
the 2nd largest store after the Nagoya Store●Listed on the second section of the Tokyo
and Nagoya stock exchanges●Listed on JASDAQ●Opened Umeda Store,●Opened Yurakucho Store
Shinjyuku Store ANNEX,Meieki Store(full-scale expansion into Tokyo)●Expanded into Kansai●Acquired Eve Corporation Co.,Ltd.、(Shinsaibashi Store)
Ark marketing japan Co.,Ltd.
●Started online sales●Opened Purchasing Center Toyota, Kyodo-nodai street,●Expanded into Tokyo
Mukogaoka-yuen, Hoshigaoka Terrace(Purchasing Center Dogenzaka)●Changed the Japanese spelling of its name●Acquired Shellman Co.,Ltd.
from 米兵 to コメ兵●First Overseas Store Opened in Beijing, China●Established KOMEHYO Co., Ltd.

51

Store Type28 stores
Large-scale
Nagoya Store，Meieki Store,
Shinjuku Store/ANNEX，Ginza Store，Umeda Store
Sales/Purchase
Jewelry, precious metals,
watches,bags,clothing,etc.

5 stores6stores

Sale and purchase *Ladiescasual clothing,Bags, small items, etc.

Mid-scaleOpening stores in large major cities
Sales/Purchase3stores

3 stores8stores

Sale and purchase *clothing at a lower
price point
Bags, small items, etc.

Small-scale
Opening stores in major cities
Sales/Purchase

Purchasing Center
Opening stores in major cities

Purchase only

11stores*Some stores only sell

Total 36 stores (‘19.3)
52

Shareholder return
Dividend changes
Dividends (Yen)

40
35
30

Dividend payout ratio

100

Fiscal year-end dividendInterim dividend
Payout ratio

90
80
16

16
(Schedule)

25

60
50

20

15
10

70

44.0

30

34.7
(Schedule)

5

16

40

16

0

20
10
0

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

53