Earnings Results Briefing
for the First Six Months ofthe Fiscal Year Ending March31, 2019
November13 2018
KOMEHYO Co., Ltd.
Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges)
Corporate Planning Department IR strategy group TEL:+81-52-249-5366
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 anduncertainties.
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.

Economic Trend
The economic environment remains on a moderate recovery path
Net sales
YoY (%)

Stock Price（yen）

Department store(fine arts/jewelry/precious metals)
KOMEHYO net sales(non-consolidated)
Nikkei Stock Average(monthly closing price)140

25,000130
23,000120
21,000

110
100
100

19,00090
17,00080

FY201970

15,000456789101112'18.1

23456789(Source：JAPAN DEPARTMENT STORES ASSOCIATION website)

1Overview of Income Statement（ Consolidated ）FY20191Q

YoY

FY20192Q

YoY

FY20191H

YoY

Net sales

11,271114.4％

12,051110.4％

23,323112.3％

Gross profit

3,224

109.7％

3,096

103.6％

6,321

106.6％

Gross profit
margin28.6％－25.7％－27.1％－SG&A expenses

2,894

104.6％

2,937

108.8％

5,831

106.7％

Operating income

329

190.3％

159

55.5％

489

106.1％

Ordinary income

326

176.2％

172

59.8％

498

105.4％Net income
attributableto owners ofparent

211

210.5％

110

56.5％

321

108.8％

Consolidated(Millions of yen)2

Overview of Income Statement（ Non-consolidated ）Non-consolidated(Millions of yen)

FY20191Q

YoY

FY20192Q

YoY

FY20191H

YoY

Net sales

9,934

114.5％

10,789109.4％

20,724111.8％

Gross profit

2,735

109.5％

2,688

104.3％

5,424

106.8％

Gross profit
margin27.5％－24.9％－26.2％－

SG&A expenses

2,445

101.8％

2,542

107.7％

4,987

104.7%

Operating income

289296.5％

14667.2％

436

138.2％

Ordinary income

292

129.1％

161

74.5％

454

102.4％Net income

196

116.6％

107

72.4％

304

95.9％
3

Operating income decrease factor（ Consolidated ）The gross profit margin decreased 1.5 points,
but operating income rose due to higher net sales.
Gross profit
Margin decrease
Sales amountincrease

△338

＋731
S,G&A Expenses
increase △363461

FY2018 1H489
Personal expenses increase△123Selling expenses increase△220
Administrative expenses increase△20

Operating income（＋28）

FY2019 1H4

Profit Margin Trend
The operating income margin (non-consolidated) ison a recovery path despite lower gross profit.
Gross profit
margin
SG&A expenses
Ratio (%)

35

Consolidated

Operatingmargin(%)

Gross profit margin16

SG&A expenses to sales ratio

30.4
30

Operating income margin

29.4

35

27.1

12

Non-consolidated
Gross profit margin

Operating income margin

30

26.9
25.6

26.3

28.3
26.5

25.0

23.9

5.5

2152.22.1

△ 0.4

10
FY2015 1HFY2016 1H25

FY2017 1H

FY2019 1H

25.7205.2

10824.1
65.84215
1.70-2FY2018 1H

26.01226.2

22.541427.4

24.3
6204.881629.5

1025

Operatingmargin(%)

SG&A expenses to sales ratio

1428.627.3

Gross profit
margin
SG&A expenses
Ratio (%)

2.1

△ 0.510FY2015 1H

FY2016 1H

FY2017 1H0-2

FY2018 1H

FY2019 1H5Overview of Balance Sheet
Products increased due to favorable performance in purchasing
Consolidated
Assets27,435
Cash anddeposits
3,445

Products11,699Assets29,139(Millions of yen)

Liabilities andLiabilities and Net Assets
29,139Net Assets

Cash and

27,435Current

deposits

Current

Liabilities

4,144

Liabilities

7,162

6,388

Products
12,172

Non-current
liabilities
2,724

Other current

Other current

assetsassets

3,376

3,551

Non-consolidated
Assets24,400Assets26,400Cash and

Cash anddeposits

deposits
2,804

Non-current
Products
Products

10,844

10,388

Net assets

18,322

19,094

Other current

Other current

assetsassets

2,995

3,592

Non-current

Non-current

Non-current

Non-current

assetsassetsassetsassets

8,914

9,272

8,829

9,158

FY2018 1H

FY2019 1H

FY2018 1H

FY2019 1H

FY2018 1H

FY2019 1H

Current

4,592

liabilities

Net assets

Liabilities
and NetAssets24,400Liabilities

2,186

2,881

(Millions of yen)

Non-current
liabilities

2,516

Liabilities
and NetAssets26,400Current
Liabilities
5,816
Non-current
liabilities
2,736

Net assets

Net assets

17,291

17,846FY2018 1H

FY2019 1H 6

Statement of Cash Flows
Cash flows from operating activities were negative due
mainly to an increase in Products

Consolidated（百万円）

Cash flows from operating activities

Cash flows from investing activities
4,769

4,327

4,271

3,886

2,048
1,533536△ 572

FY2017 1H

1,748

1,715505△ 248△ 1,412

4,964

△ 845

△ 107
△ 700

△ 1,393
FY2017FY2018 1H

FY2018△ 564△ 1,011
FY2019 1H7

By Segment
Mainstay brand fashion business:significant increases in income and profit
FY20191Q

YoY

FY20192Q

YoY

FY20191H

YoY

Net sales

10,374117.5％

11,195111.7％

21,570114.4％

Operatingincome343

218.3％

203

64.6％

546

115.7％

Operatingmargin

3.3％－

1.8％

－

2.5％

－

Net sales

879

88.1％

837

97.1％

1,716

92.3％

Operatingincome

△23－

△53－

△76－

Operatingmargin

△2.7％

－

△6.4％

－

△4.5％

－

Net sales3182.4％3286.0％64

84.2％

Operatingincome1066.9％967.0％

1966.9％Operatingmargin

32.0％

－

29.2％

－

30.6％

－

(Millions of yen)

Brand
FashionTire andWheel
Others8

FY2019 plan
Increased profit and revenue are forecasted on
both consolidated and non-consolidated bases(Millions of yen)

FY2019plan

YoY

Net sales

50,000109.9%

Operatingincome1,900Ordinary income
Net income
attributableto owners ofparent

Consolidated

NonConsolidated

FY2019planYoY

Net sales

43,00
0108.4%116.9%

Operatingincome1,500

130.1%

1,900

117.9%

Operatingincome1,500

119.3%

1,200

111.7%Net income

1,000

111.6%(Millions of yen)9

Purchases from individual customers
The amount of purchases from individual customers ison the rise due to various measures to promote purchases.
Amount of purchasefrom individualcustomers

FY2017 1H

FY2018 1H

FY2019 1H

YoY

Purchasing
Center7,971

8,977

9,521

106.1％

Home delivery
Purchasing

412429489

114.2％

Total(Millions of yen)

8,383

9,406

10,011106.4％【KOMEHYO purchasing shop HOSHIGAOKA TERRACE】 【Suburban stores are equipped with a purchasing function】
A limited-time purchasing event was held at
In August 2018, LINK SMILE Nisshin Takenoyama StoreHOSHIGAOKA TERRACE shopping mallbecame the fifth store to beequipped with a purchasing
function10E-commerce-induced sales“Buy Online and Pick up in Store,” connecting brick-and-mortar storeswith e-commerce sites, is on an upward trend(Millions of yen)

FY2017 1H

FY2018 1H

FY2019 1HYoY

E-commerce-induced
sales

2,816

3,367

3,933

116.8％

E-commerce-induced
sales rate

16.7％

18.2％

19.0%

－

【 Percentage of online sales by channel (FY2019 1H)】
【Online sales trend by channel】
KOMEHYO website(Millions of yen)
KOMEHYO website Back orders Others
Back orders
4,000Others
15.5%
20.6%
3,000
2,000

1,707

63.9%

2,103

2,513

1,000
0

17.3-2Q

18.3-2Q

19.3-2Q

11

Store TypeA total of 32 stores are open across the nation
26 stores

５stores

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

Sales/Purchase ※Ladies casualclothing, bags,accessories

6storesMid-scale

３stores

Aoyama Store, Shinsaibashi Store,
Kobe Sannomiya Store
storesSales/Purchase

3

Sales/Purchase ※clothing in the low
price range, bags,
accessories

Small-scale
Jiyugaoka Store, Omiya-higashiguchi
Store, etc.
storesSales/Purchase

8

Purchasing Center
Yurakucho, Ikebukuro-nishiguchi,
shibuya,etc.
storesPurchase only7（※

Some stores only as for the sale）

Total 32 stores (‘18.9)

12Large stores
The first anniversary of the opening of three large stores
Umeda store

Shinjyuku store
ANNEX

Meieki store

Opening date

‘17.2

‘17.5

‘17.5

Location

Shibata2-2-1,
Kita-ku,Osaka city
OSAKA UK･GATE 1-3F

Shinjyuku3-19-7
Shinjyuku-ku
Ranzan BLD B1-5F

Meieki4-8-24
Nakamura-ku
Nagoya city
MEI CLASSY BLD 1-2F

13

The purchasing center was opened
Location

Opening date

Purchasing Center
ToyotaToyota city, Aichi ken‘18.10Purchasing Center
Kyodo nodai-street

Setagaya-ku,Tokyo to‘18.11

Purchasing Center
Mukogaoka-yuenKawasaki city,Kanagawa ken‘18.12(planned)【KOMEHYO Purchasing Center Toyota】

14

Partial amendment of the Secondhand Articles Dealer Act~ allows temporary stores to purchase goods＜Main points of deregulation＞
1. Revision to units to be licensed：A place of business is permitted to be opened
in other prefectures upon obtaining a license from the prefectural Public Safety
Commission in charge of the location where the main business premises of the relevant
secondhand articles dealer are situated
2. Revision to limitations on business：“Temporary stores” are permitted toreceive goods upon notifying the Public Safety Commission of the date, time and place
beforehand.

【A purchasing caravan was held at Komeda Coffee’s main store】(18.10.28～11.11）
Items:
Jewelry, precious metals, watches, bags, wallets, etc
Benefits:
A special invitation card that offers a free drink tocustomers seeking
appraisal of theirgoods15

A New Store in Shinjyuku area
(Planned to open in April 2019)
Shinjyuku store

2018.112019.04(planned)

2020.02(planned)

Shinjyuku store
ANNEXXNew Store

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

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

Normal sales

Normal sales

New open

ClosedRenewal open

Renewalopen※The floor layouts, etc. of Shinjuku Store Annex after reopening following renovation
and a new store are pending16

Group company(1) KOMEHYO Auction

Auctions are held twice a month
Trade volume(Millions of yen)

FY2019 1H

11,876YoY

No. of member
companies

132.2％

901【Auctions are held twice a month】
Since June 2018, we have been holding jewelry,
watch and bag auctions twice a month to strengthen
profitability【KOMEHYO Auction】
17

Group company(2) KOMEHYO HONG KONG
Reuse business in Hong Kong remains strong

FY2019 1H

Net sales

YoY381

154.1％【Events in Hong Kong 】

18

Beijing store Lux Story

19

Group company(3) Eve Corporation

Aim for synergy with KOMEHYO Apparel BusinessCompany nameBusiness activities

HeadOffice

Eve CorporationCo.,Ltd.

Wholesale and retail of imported
apparel,bags,and accessories;
Operation of mail-order sites “Mike MUSEUM”
Purchase and sales of shoes, etc.
Operation of mail-order sites “WORM TOKYO”
Operation of the store of “WORM TOKYO”
Sales of shoe-care goods, shoe maintenanceservice, etc.
Operation of mail-order site “SHOES MASTER”

ShibuyaTokyo※Eve Corporation Co., Ltd. and Ark marketing japan co., ltd . merged management on November 1, 2018 through an absorptiontype merger into Eve Corporation Co., Ltd.

20

Group company store WORM TOKYO

21

Group company(4) Craft、Auto Parts Japan
Opened reuse specialty shop “U-ICHIBAN”
Company nameBusiness activities

Location

CRAFT Co., Ltd.

Sale of passenger-car tires, aluminum
wheels, auto accessories, and parts

AUTO PARTS
JAPAN Co., Ltd.

Import, sale, and purchase of auto parts
Operation of sales store’U-ICHIBAN’【EURO STYLE Craft】【URBAN OFF CRAFT】

Enhance customization ofeuro compact car

Proposing customizationof Urban SUV

Nakagawa-ku
Nagoya city

【U-ICHIBAN】
Reuse specialty shop “U-ICHIBAN”

22

Group company store U-ICHIBAN【U-ICHIBAN】Opend in April 2018, all tires and wheels are cleaned and reconditioned

23