Earnings Results Briefing
for the Fiscal Year Ended March 31, 2024
May 2024 (Delayed)
Komehyo Holdings Co., Ltd.
Securities code: 2780 (Tokyo and Nagoya Stock Exchanges)
IR・PR Department TEL:+81-52-249-5366©Komehyo Holdings Co .,Ltd.

1

Contents
P.3

1.

Company introduction

P.10

2.

Earnings Results for the Fiscal Year Ended
March 31, 2024

P.21

3.

Segment overview for the fiscal year ending
March 2024

P.32

4.

Medium-term management plan
“Beyond the 80th year milestone”

P.59

5.

Initiatives for the fiscal year ending March 2025

P.69

6.

Appendix©Komehyo Holdings Co .,Ltd.

2

1. Company introduction©Komehyo Holdings Co .,Ltd.

3

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

VisionWe develop a concept ofenvironmentally andsocially conscious
recycling into a culture

MissionValue

We respect people for making
products, thank people forproviding 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 listen and empathize withwhat others say.
We value the importance oftalking.
We take action proactively.
We are not afraid of creatingchange.

Our unique concept is that ``things fulfill their mission only when they are passed down from person to person (relay) and pu t toeffective use (use).‘’ Our group does not simply provide products, but instead plays a role in proposing value to customers a nd
co-creating value with them. We value the thoughts of the people who create things and the thoughts of those who connect
things ``for someone else,'' and make the next person who uses them smile, happy, and enriched. The entire group will work tocreate a society where such thoughts and efforts are commonplace.

https://komehyohds.com/mission_vision_value/©Komehyo Holdings Co .,Ltd.

4

Business list
We operate three businesses: Brand Fashion, Tire and Wheel, and real estate leasing. We support "Relay Use," the handing down ofgoods from person to person and their effective utilization, both in Japan and other countries.
Consolidated sales for the fiscal
year ending March 2024

Brand
Fashion（BF）

119, 4591

millions of yen

Sales ratio

Business content

95.5%

Purchasing used goods fromindividuals and businesses that
handle used goods Offering a wide
range of products from popularused products to regular new
products

Main customers

Overseas sales ratio
Domestic

Overseas※1

90.2%

9.8%

119,459
Millions of yen− individual− Corporation

Tire and
Wheel
（TW)

4.2%

Purchasing and selling tires,
aluminum wheels, and automotive
accessories

Retail ratio
Corporate
sales※2

51.6%

Real estateleasing

0.3%

Leasing and management of stores,
leasing of stores within the Group

Retail48.4%

119,459
Millions of yen− Corporation*1 "Overseas" does not include domestic duty-free sales, etc. *2 Including auction fee©Komehyo Holdings Co .,Ltd.

5

Company Highlights (Consolidated)
A leading player in the reuse industry, which operates KOMEHYO, BRAND OFF, and other brands in Japan and other countries

Net sales *1

Founding

1947

119,459年

Individual purchase amount * 1

millions of yen（ Growth achieved in three consecutive terms ）Number of employees *2

1,405

peopleBreakdown : appraisers in the brand fashion business

Number of stores in Japan *2

215

Breakdown: 10 sales stores, 160 purchase centers,
and 45 stores annexed with purchase facilities*1 Results for the fiscal year ending March 2024

*2 As of the end of March 2024

millions of yen

Talent retention rate *1

92.0

699 people
Number of overseas
stores *2

19

stores61,205Market share *3
Brands andjewelry

stores（ 5 countries/regions ）No.1*3 The Japan Journal of Remodeling Source: Reuse Market Databook 2023.

%

Number of operatingcompanies ※ ２

15companies©Komehyo Holdings Co .,Ltd.

6

Business Domains of Komehyo Holdings Group
Brand Fashion Business (General): Aim to be No. 1 in sales volume.
Secondary
distribution

Primary
distribution
Purchase

Product evaluation/commercialization

sale

General customers

Real store
Home delivery
purchase

Event purchaseOn-site purchase

Product center

In-house auction

New producthandling businessreuse business
Other company auction

reuse business

Inspection
maintenancecleaning
photo shootData
entry/management

General customers

Real store©Komehyo Holdings Co .,Ltd.

7

Business Domains of Komehyo Holdings Group
Brand Fashion Business (Specialized): Aim to be one-of-a-kind with core fans.
Secondary
distribution

Primary
distribution
Purchasesale

Product evaluation/commercialization

saleReal store

Generalcustomer

Home delivery purchase

Product
commercialization

Real StoreEC

Generalcustomer

Product
commercialization

・Department
store
・Real store
・EC

GeneralcustomerOn-site purchaseoverseas
・ndependentwatchmaker・WatchmaisonDomestic
agency・Department
store
・Real store
・EC

Generalcustomer

GeneralcustomerReal store
Reuse
Business

Generalcustomer

Reuse
Business

Real store
Product
commercialization

Real Store
EC
live commerce

Generalcustomer

Reuse
Business©Komehyo Holdings Co .,Ltd.

8

Business Domains of Komehyo Holdings Group
Tire and Wheel Business

Secondary
distribution

Primary
distribution
production

sale

General customers

Maker

Reuse business

Domestic mass retailer

sale

Product
commercialization

General customers

Planning and development

production

Purchase

Overseas©Komehyo Holdings Co .,Ltd.

9

2. Earnings Resultsfor the Fiscal Year
Ended March 31, 2024

©Komehyo Holdings Co .,Ltd. 10

Summary of Consolidated Earnings Results for the Fiscal Year Ended March 31, 2024
Retail sales including sales to inbound tourists remained strong, capitalizing on ample inventory from strong purchases from individuals.
Strengthening of corporate sales aimed for inventory control, which was made in response to soft market prices, also contributed to sales
growth. Growth in net sales offset the decline in gross profit margin and increase in SG&A expenses, leading to increased sales and profit.

Individual purchase amount61,205

millions of yen

Consolidated sales

119,459

millions of yen

Operating income

7,452

millions of yen

YoY

YoY

Plan ratio*

YoY

Plan ratio*

140.0%

138.7%

112.7%

144.2%

103.5%

Achieved record purchase price・In addition to aggressively opening newstores and stepping up promotions, we
worked to set purchase prices with a balanced
approach in response to market fluctuations,while taking into account prices in corporate
auctions.
・In addition to an increase in the number ofcustomers, the purchase amount per
customer is trending favorably.

Record high for 3 consecutive terms

Record high for 3 consecutive terms

・Retail sales, including sales to inboundtourists, were strong, capitalizing on ample
inventory from strong purchases fromindividuals.

・Although the gross profit margin decreasedby 1.4 points from the previous fiscal year,
gross profit increased due to the effect ofincreased sales.

・ Despite soft market prices, we made groupwide efforts to strengthen sales activities andstrengthened corporate sales with a focus on
high-risk inventory, taking into account trends
in market prices. This resulted in higher-thanexpected net sales.

・Operating profit also increased despite anincrease in SG&A expenses, including
personnel expenses, because they were
controlled within the planned range.

*Comparison with the full-year plan for the fiscal year ended March 31, 2024 stated in "Notice Concerning Revision of Earnings Forecast" published on August 14, 2023.

©Komehyo Holdings Co .,Ltd. 11

FY 2024 Performance
In the full year, both net sales and profits were at record highs. Sales and profit increased for three consecutive
fiscal years.
(Millions of yen)

FY2022

FY2023

FY2024

Changes

YoY

Plan ratio*

Net sales

71,148

86,113

119,459

33,346138.7%

112.7%

Gross profit

18,41522,542

29,5907,048

131.3%

-

25.9%

26.2%

24.8%

△1.4pt--SG&A expenses

14,70017,373

22,137

4,764

127.4%-

Operating profit

3,714

5,168

7,452

2,283

144.2%

103.5%

5.2%

6.0%

6.2%

＋0.2pt--Ordinary profit

3,772

5,406

7,479

2,072

138.3%

103.4%Net income attributableto owners of parent

2,259

3,706

5,025

1,318

135.6%

104.3%

Gross profit margin

Operating profit margin*Comparison with the full-year plan for the fiscal year ended March 31, 2024 stated in "Notice Concerning Revision of Earnings Forecast" published on August 14, 2023.

©Komehyo Holdings Co .,Ltd. 12

Analysis of consolidated operating income
Purchasing remained strong, and sales increased significantly in both retail and corporate sales.
Due to sales growth, profit increased by absorbing the decline in gross profit margin and increase in SG&A
expenses.
Net Sales• Purchasing is going well（Millions of yen）

• Growth in both retail and corporate sales• Retail sales ratio increased by 1.5 points
compared to the previous quarter

Gross profit
Gross profit margins for both retail and corporate
sales declined due to the decline in market prices
for watches and bags during the period.
Increase in personnel costs such as
salaries and allowances△2,038
Increase in general administrative expenses
such as ground rent △1,576
Increase in selling expenses such as
advertising expenses△1,148

SG&A expenses• Increase in salary allowances due to baseincrease and increase in employees• Increase in ground rent, etc. due to store
openings• Increase in advertising expenses due to enhanced
promotions©Komehyo Holdings Co .,Ltd. 13

Trends in Consolidated Net Sales and Gross Profit Margin
Sales increased significantly for both retail and corporate customers due to strong individual purchases.
Market prices for watches and bags will decline in the third quarter of 2023, and gross profit margins will decline for both retail andcorporate sales in the second half.
35,31831,377

Consolidated sales(Millions of yen)

27,667

19,237

21,27623,47523,41725,096

20,46618,753

16,472
14,162Grossprofitmargin

1Q

2Q

3Q

4Q

28.1%

25.6%

26.3%

24.2%

FY2022

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

25.2%

25.0%

27.6%

26.7%

26.3%

24.2%

24.9%

24.0%

FY2023

FY2024・Varies depending on product composition ratio (fashion > jewelry/precious metals > bags > watches)

Factors behind fluctuations in gross profit ・Varies depending on the composition ratio of individual purchases and corporate purchases (individual purchases > corporate purchases)
・Varies depending on the composition ratio of retail and corporate sales (Retail > Corporate sales)©Komehyo Holdings Co .,Ltd. 14

Breakdown of consolidated Net sales(Retail / Overseas/Domestic tax-free sales)【Retail】Strengthening of retailing has increased the retail ratio, maintaining an ideal composition ratio (Retail: Corporate = 50:50).

【Overseas】Overseas sales are strong due to relocation and store openings in Hong Kong and Taiwan【Domestic tax-free sales】Maintaining strong sales by keeping stores well stocked

Retail ratio

YoY

Overseas ratio

Domestic tax-free sale ratio
YoY＋1.5ptYoY＋0.4ptTax-free sale*

Overseas*

13.2%

9.8%
Corporate
sales*
51.6%

FY2024
Net sales

119,459Retail

48.4%

Millions of yen

Domesticsales

FY2024
Net sales

119,459
Millions of yen＋7.3pt（FY2024）

Taxation
Dometic

86.8%

90.2%

※｢法人販売｣にはオークション手数料が含まれております* The ratio of overseas business does not include
domestic tax-free sales, etc.
*Total sales of overseas group companies* Calculated before eliminating internal transactions.
©Komehyo Holdings Co .,Ltd. 15

Purchase from individual customers (Group total)
Factors including the continued opening of purchase centers and growth at existing stores produced a solid trend in the numbe r ofcustomers and in the purchase amount per customer, resulting in a record purchase amount for the full year at 140.1% compared tothe previous fiscal year.
Increase in purchasesof gold and bullion

Individual purchase amount（Millions of yen）

17,666
15,465
Increase in purchases ofgold and bullion

8,983
7,728

1Q

2Q

3Q

FY2022

9,858

4Q

14,54913,51911,052

7,574

Balanced pricing in
response to market
fluctuations

1Q

11,74010,552

2Q

10,2683Q

4Q

1Q

FY2023* 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)

2Q

3Q

4Q

FY2024©Komehyo Holdings Co .,Ltd. 16

Changes in selling, general and administrative expenses
Factors including the continued opening of purchase centers and growth at existing stores produced a solid trend in the numbe r ofcustomers and in the purchase amount per customer, resulting in a record purchase amount for the full year at 140.1% compared tothe previous fiscal year.

22,137(Millions of yen )（YoY127.4％）

Selling expenses
4,803

17,373
14,700（YoY131.4％）

Selling

expenses

3,655
7,851

2,707

（YoY125.1％）

6,274

G&A

Personnel
9,482
7,443

FY2023

FY2024

20.7%

20.2%

18.2%

expenses

Increase in ground rent and software
depreciation expenses associated with store
openings

expenses（YoY127.4％）

FY2022

G＆A

expenses

5,610

6,383

Increase in card fees, etc. due to new store
promotions and increased sales

Personnel expenses
Increase in employee recruitment costs, salaryallowances, etc. due to store openings

SG&A expenses tosales ratio(%)©Komehyo Holdings Co .,Ltd. 17

Balance sheet overview
In addition to strong individual purchases, we have strengthened corporate purchasing and secured ample inventory in preparat ion
for business expansion and new store openings. Inventory assets, which are the source of increased sales and directly linked to
growth, have increased significantly. We control inventory keeping period and unrealized profits in mind.
March 2023

March 2024

35,322

49,926

14,604

Cash and deposits

10,382

15,2084,826

Inventories

18,70524,353

5,647（Millions of yen）

Current assets

ChangeOther current
assets

6,234

10,364

4,128

Non-current assets

11,430

14,112

2,681

Assets

46,75364,03917,285

Liabilities

22,50635,26912,763

Interest-bearing
liabilities

16,49827,733

11,235

Other liabilities

6,007

7,535

1,527

Net assets

24,247

28,7704,522

Liabilities andnet Assets

46,75364,03917,285Inventories
Inventory assets, which are the source of sales,
increased due to strong individual purchases andstrengthened corporate purchasing.

In the reuse business, the quality and quantity of inventory, whichis the source of sales, is important, and a large and fresh
inventory is a competitive advantage.

Interest-bearing liabilities
Interest-bearing debt increased due to increase
in inventories

Net assets
Increase in retained earnings, etc.

©Komehyo Holdings Co .,Ltd. 18

Inventory TurnoverBF BusinessIn order to respond to the decline in market prices for watches and other items starting in November 2023, we have prioritize d risky
inventory with low profit margins for corporate sales. As a result, although the gross profit margin decreased, risk inventor y could
be disposed of as planned and the inventory turnover period was shortened. Crossover ratio increases

Inventories(Millions of yen )23,533

FY2022

FY2023

FY2024Gross profit
margin

25.3%

25.6%

24.3%

inventory
turnover3.8 turn over

3.7 turn over

4.3 turn over

*2

96.1%

94.7%

104.5%FY Inventory
write-down

59Millions of yen

42 Millions of yen－

17,993
14,630

Cross-Ratio

FY2022

FY2023

FY202480.1days

80.8days

75.1days

Inventory turnover period*1*1 Investories/Net sales*2 An indicator that is emphasized within the group, calculated as gross profit margin x inventory turnover rate.
©Komehyo Holdings Co .,Ltd. 19

Consolidated cash flow
Cash was used in operating activities, mainly reflecting an increase in inventories in preparation for business scale expansi on andnew store openings, as well as an increase in income taxes. There were significant cash inflows from financing activities due in partto strong purchases from individuals and increased borrowings.
Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Cash and cash equivalents

Cash flows from operating activities
18,091（Millions of yen）

Increase in inventories andcorporate tax payments, etc.
12,283

10,738

9,425

Cash flows from investing activities
Increase in tangible and intangible
fixed assets due to store openings,
etc.

1,536

1,134
△ 529

△ 1,895

FY2022

1,849△ 1,951

FY2023

Cash flows from financing activities△ 548△ 3,215
FY2024Due to strong individual purchases,
the amount increased significantly due
to the use of loans to cover payments
to customers.

©Komehyo Holdings Co .,Ltd. 20

3. Summary of Consolidated Earnings Results
for the Fiscal Year Ended March 31, 2024

©Komehyo Holdings Co .,Ltd. 21

Summary of financial results by segment
for the fiscal year ending March 2024
Brand fashion business（BF）
Individual purchaseamountNet sales

Tire and wheel business（TW）

Operating income

Net sales

Operating income

61,076

114,339

6,891

5,073

267

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen（YoY140.1%）（YoY140.8%）

Purchase

Opened 54 purchase specialty stores (KOMEHYO41, BRAND OFF14)
Opened 1 flagship store and 4 overseas stores.Personal purchases werestrong due to the growth of existing stores and the opening of new stores.
Highest purchase amount everNet sales

Retail and corporate sales were strong, capitalized by abundantinventory due to strong individual purchases. Sales increased
significantly.

Gross profit
marginFrom the second half of November 2023 onwards, the market prices ofwatches and bags will decline. As a result, while securing retailinventory, we are strengthening our efforts to allocate high-risk
inventory to corporate sales, which have lower gross margins.
Therefore, gross profit margin will decline

SG&A
expenses（YoY105.0%）（YoY141.9%）

Actively invest in human resources to expand business. SG&A
expenses increased, but were controlled as planned（YoY108.9%）

Net Sales

Sales of winter tires were sluggish due to thewarm winter. However, new and used online
sales and sales of in-house designed wheels
were strong both domestically and overseas.

Gross profit
marginSales of winter tires, which have a high grossprofit margin, were sluggish. Additionally, salesof tire and wheel sets were struggling. This
resulted in a decline in gross profit margin.

販管費

SG&A expenses increased compared to theprevious fiscal year, but controls weresuccessful. SG&A expenses were suppressedmore than expected, contributing to profit
increase©Komehyo Holdings Co .,Ltd. 22

Overview by segment
Achieved increases in sales and profits in each business（Millions of yen）

‘24.3-1Q’24.3-2Q

YoY’24.3-3Q

YoY

YoY’24.3-4Q

YoY

FY2024
*

YoY

Brand
FashionTire and wheel
Real estateleasing

Net sales

24,075135.3%

26,724136.9%

29,314136.1%

34,224152.9%

114,339140.8%

Operatingincome1,683

230.5%

1,442

143.8%

1,545

94.4%

2,219

149.5%

6,891

141.9%

Operatingmargin7.0%＋2.9pt5.4%＋0.3pt5.3%△2.3pt6.5%△0.1pt6.0%±0

Net sales

1,009

106.5%

931

99.6%

2,051

106.6%

1,082

105.5%

5,073

105.0%

Operatingincome

2

79.9%

△8

-

275

90.7%

△1

‐

267

108.9%

Operatingmargin0.2%△0.1pt

-

-

13.4%

△2.4pt‐‐5.3%＋0.2ptNet sales71

100.1%

71

100.1%

71

99.9%

72

101.0%

287

100.3%

Operatingincome21100.0%

21

104.0%

21

97.2%

22

107.3%

86

102.0%

Operatingmargin

30.3%

‐

30.0%

＋1.2pt30.0%△0.8pt30.4%＋1.7pt30.2%＋0.5pt*Adjustment amount: Sales -240 million yen, operating income 207 million yen©Komehyo Holdings Co .,Ltd. 23

Stores | 234 stores in total for the Group (as of March 2024)
KOMEHYO opened 101 new purchase centers in the three years (41 stores in the fiscal year under review) and achieved the goalof opening 100 stores in three years. BRAND OFF opened 14 franchised purchase centers and 5 overseas stores*2 in the fiscal
year under review.

Brand Fashion

flagshipstore

6

Sales Stores

1

Stores annexed withsales facilities

18

3

126
( 15,-1 )※2

6

Purchasing CenterFranchised
purchasing center

3

3
2

10

2

2

10

2

28 ( 4 )※2
4(-2)※2

15 ( 2 )※2

Total

155

55

*1 Including Shanghai store

1
6

Overseas

BRAND OFF
KANAZAWA store

Tire and wheel

Shellman
GINZA store*2 The figure in parentheses (7

3

WORM OSAKA) represents the increase during the fourth quarter.

Craft NAKAGAWA store

SELBY OKACHIMACHI store©Komehyo Holdings Co .,Ltd. 24Brand and fashion business overview
In the fourth quarter, both purchases and sales remained strong, unchanged from the third quarter. Gross profit margin is neg ative comparedto the same period last year
Initial Plan

3Q

4Q

・Individual purchases: YoY 149.8％
・In October the impact of domestic gold retail prices exceeding 10,000 yen per gram
continued, resulting in strong performance with jewelry purchases.
From mid-November onwards market prices started to fall, particularly for high-priced watches
and bags. We controlled purchase prices by referencing market prices on auction sites.

・Personal purchase: YoY comparison: 141.7%
・Market price has remained flat since 3Q
・Domestic retail gold prices are on the rise, partly due to the impact of exchange rates
・Proactively purchase retail items that are popular both domestically and internationally.
Focus on focused purchasing, such as strengthening
・Continue to strengthen corporate purchasing to improve the attractiveness of sales
stores・Duty-free sales: 144% compared to 2Q,Continues to be strong
・We strengthened corporate sales with a focus on high-risk inventory, taking into accountDuty free sales were at thetrends in market prices
Net sales same level as the fourth quarter
・The bonus season discount campaign got off to a weak start, and additional price reductionsof last year.
were made during the campaign period.
・Due to the warm winter we struggled to sell winter clothing in the first half.

・Tax-free sales: 3Q: 100.3% / YoY: 222.6%
・By enriching our stores with attractive products from ample inventory,
Retail is doing well・Strengthen corporate sales aimed at inventory control, focusing on inventory withlow profit margins due to market fluctuations

・Purchase (individual
purchase + corporate
Purchase purchase)：YoY 118%
・The market price for eachproduct is flat or gently risingGrossprofitmarginImprove gross profit margin byincreasing the ratio of retailsales to sales

・The gross profit margin was expected to be at the same level as the previous year, but it
decreased by 2.6 points.
・Gross profit margin for corporate sales declined due to fluctuations in market prices. Grossprofit margin declined significantly especially for high-priced watches and bags.
・Gross profit margin declined due to retail sales prices also being adjusted based on
fluctuations in market prices.

Changesin selling,
general We will make active
・We continued to actively invest in human resources aimed at growth in Japan and overseas.
andinvestments to drive continuous
administr growth in Japan and overseas. ・SG&A expenses were controlled largely in line with plans
ative
expenses・Compared to the same period last year, -2.7pt
・Priority was given to inventory control, and profit margins were low due
to falling market prices.
Gross profit margin decreased due to aggressive sales of products at retailand corporate stores・Gross profit margin decreased due to increase in corporate ratio
・Continue to invest in human resources for growth, including store
openings
・Control investment timing from the perspective of importance andurgency©Komehyo Holdings Co .,Ltd. 25

| Purchasing and sales status by route*1

BF business

Domestic retail gold prices remain high in terms of the composition of products purchased by individuals. As a result, jewelr y and precious
metals account for about 40%. We actively engaged in corporate purchasing in preparation for store openings and inbound deman d, and thecorporate purchasing ratio increased by 3 points compared to the previous fiscal year.

Product center

Purcase75％

Purchase from individual customers

Stores/Home delivery Purchasing/Purchasing at
visited sites

Sale
RetailYoY▲3pt

YoY±0・Store・WEB（Own EC site,EC mall,live commerce）

events/Purchasing at

Corporate sales
Sales to reuse businesses
Composition
ratio*2

39％ 25％ 29％ 6％

YoY（＋1pt）（▲2pt）（＋1pt）（±0pt）

Corporate purchasing
Purchase from reuse businesses(used and new items)

25％
YoY＋3pt

Supplementing individual purchases
mainly to maintain store appeal*1 Cumulative total for the fiscal year ending March 2024

41％

The product center collects
products purchased from all overthe country. Authenticity checks
are performed by experienced
appraisers and maintenance iscarried out as necessary.
Supply products to optimal sales
destinations while controllinginventory risk

*2 Composition ratio of each product to individual purchase amou nt

59％
YoY±0

・Auction (in-house, other companies)
・Events, wholesale (domestic/overseas)・Live commerce
We sell products that are suitable forcorporations (antiques, unsuitable forretail, etc.), and products that have highinventory or high risk. It also helps
revitalize your own auctions.

©Komehyo Holdings Co .,Ltd. 26

| E-commerce-induced sales rate

BF business

Due to the increase in the number of customers, EC -related sales*1 reached a record high of 129% compared to the previous period . The EC
involvement rate*2 remains at just under 40% due to an increase in the sales ratio of foreign visitors to Japan at retail sto res

EC mall

Back orders

EC induced sales(Millions of yen)since October 2023 we have been introducing tools with multi-lingual support on our own
ecommerce site.
In November 2023 we began selling on the "Mercari Shops" e-commerce platform,
bringing the total number of e-commerce platforms in Japan and overseas that we sell on
to 8.

KOMEHYO website

3,448

3,621

3,064
2,814

2,803
2,512

2,586

2,619

2,640

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

43.6%

44.6%

38.0%

38.6%

38.0%

37.9%

36.2%

36.9%

2,333
2,197

2,021

1Q
E-commerceinduced sales rate 43.7%

2Q

3Q

4Q

46.1%

43.8%

49.5%

FY2022

FY2023

FY2024*1 Sales that are the sum of sales from the company‘s own e-commerce site and e-commerce mall, and sales from customers purchasing products at stores via the company’s e-commerce site. Integration
with offline is essential for digital marketing strategies that leverage our strengths *2 EC-related sales/retail sales©Komehyo Holdings Co .,Ltd. 27

Improving Profitability startingwith Franchised Purchase Centers

BF business

Increase purchase volume by opening more franchised purchase centers and strengthen the flow of items to be sold on the compa nyoperated Japan Brand Auction (JBA). Increase JBA's GMV (trading volume) and improve profitability with auction fees.

▍Business model

Buyer

Our company

r e u s eb u s i n e s s

SaleSellerG e n e r a l
c u s t o m e r ssell

FC purc ha s es pe c i a l ty s tore
Di re c tl yma na ge d s tore

Listing

Product
price/auction fee
An attractive platform with abundant listingsand support both face-to-face and online

Sale

Buyer
r e u s eb u s i n e s s

G e n e r a l
c u s t o m e r s▍Progress in the franchised purchase center opening plan
Target for FY 2024:

40 stores

Results (progress rate: 35%)

14

Reasons for the delay (Strategic decisions made in consideration of the business environment)• We prioritized resources for retail store renovations and store openings in light of strong performance
maintained by Ginza main store and overseas stores.
• We have emphasized sustainable growth after opening new stores and had discussion with ownercandidates carefully. For franchise stores which have already opened, we strengthened support forincreasing the amount of purchases per store.
Keeping the number of stores which closed due tounprofitability at zero
• We strengthened sales activities targeting major corporations that can operate multiple franchise stores.
©Komehyo Holdings Co .,Ltd. 28

| Status of retail sector

BF business

Strong performance has continued at the existing BRAND OFF Ginza Main Store flagship and at overseas stores in Hong Kong andTaiwan.We have continued to enhance points of contact with new customers by renovating retail stores, opening new stores andmaking active improvements in e-commerce, in both Japan and other countries.

▍Overseas stores

January 2024Newly opened "BRAND OFF Takashimaya Used
Luxury Goods Store (Shanghai, China)*.

February 2024Relocated and opened "BRAND OFF
Taipei Main Store (Taiwan).

* Stores operated under the KOMEHYO trade name have been changed to the "BRAND OFF" trade name, which is highly recognized in Greater China.
©Komehyo Holdings Co .,Ltd. 29

| Corporate auction GMV（volume）growth

BF business

Due to an increase in the number of member companies, JBA's real auction at Kanazawa venue was particularly
successful. Total GMV of the two companies (KOMEHYO Auction and JBA) for the full year was 123.6% compared tothe previous quarter, a record high13,785

12,780

9,969

10,255

9,854

10,346

10,334

11,851

11,950

8,775

8,553

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

2,812

2,966

3,095

3,124

3,280

3,409

3,573

3,659

3,864

4,060

4,332

4,522

7,948

FY2022

FY2023

GMV volume（Million of yen）

Number ofregisteredmembers

FY2024©Komehyo Holdings Co .,Ltd. 30

| Overview of tire and wheel business

TW business

Due to the warm winter, sales of high-margin winter tires have been difficult. However, new and used online sales, as well as
sales of in-house designed wheels both in Japan and overseas, remained strong. Sales increased by achieving sales of 5 billion
yen for the first time in the tire and hole business. SG&A expenses were suppressed more than expected, contributing to profi t
increase

Craft
・Purchase/trade-in
The amount of used items purchased at stores wasstrong, 117% compared to the previous quarter. Securehigh-quality genuine tires and wheels when installed ona new car through trade-in.

・SalesAuto parts japan
・Purchasing/corporate purchasing
Due to increased competition with suppliers,
corporate purchasing amount decreased by
95% compared to the previous period

・Sales‐Sales of new tires and wheels for summer
products remained steady at 109% compared tothe previous period.

- U-ICHIBAN Used product sales at stores are
struggling with tire and wheel set sales due tothe impact of the warm winter and price hikes
in primary distribution.

‐Sales of winter tires are struggling due to thewarm winter. In addition, tire and wheel set sales
decreased due to price increases in primary
distribution.

-Web sales remained strong, with new
products increasing by 133% and usedproducts increasing by 106% compared to theprevious period.

Strengthen in-store trade-ins and purchases

4×4 engineering service

Increased number of items listed on EC mall due to improved
sasage efficiency

・We are expanding the size of our main brandBradley series, which will lead to thedevelopment of new partners in Japan andoverseas.
・Started direct transactions with overseas
partners. Aiming for further growth andexpansion.
・Expand awareness activities by exhibiting forthe first time at Japan's largest car festival"Tokyo Auto Salon 2024"

Forged 4WD wheel “BRADLEY FORGED Takumi”©Komehyo Holdings Co .,Ltd. 31

3. Medium-term management plan
“Beyond the 80th year milestone”©Komehyo Holdings Co .,Ltd. 32

Position of the Medium-term Management Plan
We aim to achieve sales of 250 billion yen by the 80th anniversary of the company's founding, which isthe final year of the Medium-term Management Plan, with a view to becoming the world's No. 1
company in sales of brand goods for reuse (net sales of 500 billion yen).

No. 1

the world's
company
in sales of brand goods for reuseMedium-term Management Plan (rolling method)

500「Beyond the 80th year milestone」

billion yen
80th anniversary

FY2025－FY2028

250
Achieved record profit for 3 consecutive years

KOMEHYO Shinjuku store (at the time)
opened in 2005 and contributed to growthFirst time in Tokyo. Proposed"RelayUse" in the previous year

100
billion yen

billion yen• Overseas sales ratio: 30%• CAGR：20％• Number of group stores:
420 stores

30
billion yen• Overseas sales ratio: 15%

10billion yen

1996

2007

2024

2028

future©Komehyo Holdings Co .,Ltd. 33

Quantitative Targets (FY2025 to FY2028)
During the period for the current Medium-term Management Plan, we will achieve business growth *that exceeds market growththrough aggressive investment, aiming to achieve net sales of 250 billion yen and operating profit of 15 billion yen in the f iscal year
ending March 31, 2028, which is the final year of the plan.
M edium-term management plan

（Millions of yen）

Net Sales

FY2024FY2025

FY2026FY2027（results）（forecast）（plan）（plan）

80th anniversary

FY2028（plan）

119,459

140,000

170,000

200,000

250,000

Operating income

7,452

8,000

9,800

12,00015,000Operating margin

6.2%

5.7%

5.8%

6.0%

6.0%

Ordinary profit

7,479

7,900

Net income attributableto owners of parent

5,025

5,200

ROE

19.2%

17.1%

18% or more

Capital adequacy ratio

44.4%

Approximately

EPS（yen）

458.7

45%
474.6

Approximately
45%

Dividend payout ratio

19.2%

21.1%

*Reuse market performance in 2021 Average annual growth rate 7.5% Reform Sangyo Shimbun “Reuse Market Data 2023”

CAGR

20%

Approximately
20%©Komehyo Holdings Co .,Ltd. 34

Operating the Medium-term Management Plan Based on Competitive Advantages
Since its founding, the Group has been consistently engaged in reuse and has established competitive advantages based on its humanresources, channels, and market share. The Medium -term Management Plan will be based on the business environment and competitive
advantages, and we will pursue constant growth.

competitive
advantage

human resources

Annual GMV

Share

Securing and developing salespeople bycapitalizing on high retention rate Capable ofproviding high value-added services.

well-developed channel, we are increasing thenumber of items handled by expanding sales
and purchases. We also implement CRM, SCM,
and marketing activities based on data.

We also demonstrate high competitivenessglobally, based on the trust and confidenceof being the No. 1* company in brandgoods for reuse.

No.1

Key points in the promotionof the Medium-Term Management Plan

Focusing efforts on knowledge transfer andtraining with the aim of establishing a group of
professionals consisting of highly
specialized appraisers and salespeople*The Japan Journal of RemodelingSource: Reuse Market Databook 2023.

Pursuing the best possible services byleveraging a wealth of data andtechnologies

Increasing market shares by deepening
loyalty with overwhelming brand power andthrough multi-brand strategy©Komehyo Holdings Co .,Ltd. 35

Outlook of the Reuse Market
The reuse market is on an expansion trend in both Japan and other countries. The growth is expected to continue, coupled withgrowing interest in sustainable/recycling -oriented society.

▍Domestic reuse market size

▍Overseas reuse market size *3

*1

（億円）

China
Americajapan

40,00095（兆円）

32,50060

28,97646
32

13,594

18
20
2.4

2012

2020

2021

2022

2025
（forecast）

2030（forecast）• As long as t here is primary distribution, sources for the reusemarket w ill cont inue t o expand.
•

T he Japanese people v alue t hings, so w e expect them to bereused mult iple t imes.

• T he current reuse rat e is as low as 4.2%. T here is room forgrow th.

5

3.5

2020

2025
（forecast）

2030（forecast）• In the U.S. and China, there are markets that are larger thanthe Japanese market. T hey are also grow ing at a remarkablespeed.
• Asia is expected to driv e the grow th of the luxury market. T hereuse market of Asia, w hich attracts goods, has great
potential.

*1 The Japan Journal of RemodelingSource: Reuse Market Databook 2023. *2 Our estimate*3 Estimated by us based on the Reuse Market Databook 2022, report from Mercari USA, industry report by Frost & Sullivan, and other sources.

©Komehyo Holdings Co .,Ltd. 36

Expansion of the Target Market
We have already built a foundation in Japan by facing multiple markets, including the market of purchases from individuals,
auction market, and retail and wholesale market. If the CtoC market is also considered, business opportunities exist in a vas t
market66.6 trillion yen

Generalcustomers

C2C market(Distribution involvement/market growth involvement area)

Generalcustomers

CtoC platformer
BF business
Actualized
Reuse rate

4.2%

BF business
Hiddenassets* 2
18.8 trillion yen

Individual purchasemarket(Buy and sell business
area)
Personalpurchasebusiness person

auction market(Distribution area)
auctionbusiness person

Retail/Wholesale
Market(Buy and sellbusiness area)
Used item sales
business person

Luxury items circulate in each market many times.
Contributing to the solid trend of the overall reuse market*1 Survey on “2023 Edition: Hidden Assets in Japanese Families” supervised by Mercari Nissei Research Institute, announced on November 15, 2023
*2 Our estimate©Komehyo Holdings Co .,Ltd. 37

Concept for business growthBased on market trends and competitive advantages, we will set key investment items, supporting management platforms, andtactical options. For the mainstay Brand Fashion business, we aim to expand sales and GMV globally by defining threebusinesses: (1) trading business, (2) business that contributes to distribution, and (3) business that contributes to market growth.
Important investment
items• Human resource▍Expansion of the Brand Fashion business domain (for illustration purposes only)③Business that contribute tomarket growth

recruitment anddevelopment• Stores• IT (reuse technologies)• Marketing②Business that contribute to
distribution• Sustainability
S u p p or ti n g m a n a g e m e n t
f ou n d a t i o n s• Organizational
development①Trading business• HR development

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

Tactics options• M＆A• Capital / Businessalliances

Increasing GMV withbusinesses linked with corebusinesses, such as
operation of BtoB auctions• Auction market• C2C market

Businesses based on
support for or cooperation
with users and business
operators in the reusemarket provided and madeby using our own assets,
which lead to the expansionof the reuse market ofbrand goods• New entry• New services etc.

• Purchase market• Retail wholesale markets©Komehyo Holdings Co .,Ltd. 38

Approach to Business Growth Approach by Target GroupOur expertise in the reuse market enable a detailed approach to each target group.

Promoting interactions with the group,Groups to approach continuously

Existing customers
A group of customers
who already havecontact with the Group

Group with apparent
demand for goods forreuse
A group of people who areinterested in reuse and want toreuse goods/Users ofcompetitors or CtoC apps.

Group we aim to acquire in the futureGroup with potential
demandA group of people who are notinterested in reuse and who areunaware of its value/who have anegative impression of reuse

which involve both sales and purchases of goods
Users who both purchase and sell goods account for 10%
of existing customers.

Purchase

38.4%

Sales

10.3% 40.5%

We will strengthen CRM and face -to-face services toincrease opportunities for use.

Entering more areas
Developing key areas inJapan and other countries
KOMEHYO
Singapore（Opening in May 2024)

KOMEHYO Member's Card member UU number composition ratio*

Appealing to diverse customers with thebreadth and depth of goods.

Expanding online
contact points

Offering goods with a wider
range of conditions andprices, thus providing
options that are unique togoods for reuse
Bag specialty store

Forming platforms inJapan and othercountries(Opening in April 2024)

Channel acquisition through cross-industry
alliances

Increased points of contact with global Z
and Y generations

Promoting the value of reuse to new customers

Opening of store for reuse natives

Company A

BC

Shibuya store with many
products for young people※ Cumulative results from 2014 to 2024
©Komehyo Holdings Co .,Ltd. 39

Basic Policies for the Medium-term Management Plan "Beyond the 80th year milestone"
Strive to achieve business growth and higher social value under a policy based on the business environment and competitive
advantages.

1

Achieving business growth
Increasing domestic and overseas market shares throughmulti-branding

Brand・
Fashionbusiness（BF）

Implementing measures based on thecharacteristics of each business(1) Trading business (Japan and other countries)(2) Business that contributes to distribution(3) Business that contributes to market growthTire Wheelbusiness（TW）

2

Strengthen ability to respondto market conditions

M＆A
strategies

Stable increase in sales and profit
Growth achieved by leveraging
the power of the Group3

A d v an c i n g m a n a g e men t
w i t h a n a w a r e n es s o f
c a p i ta l c o s t

Achieving ROE and ROIC
exceeding capital cost

Area strategies

Deepening sustainable management
Contribution to a carbon-neutral society
Aggressive investment in human resources
Strengthening governance©Komehyo Holdings Co .,Ltd. 40

Basic Policy 1⃣

Achieving business growth

BF business: (1) Trading business (Japan)

Maintain No. 1 market share in the growing brand reuse market. Strengthen investments in store openings, ecommerce, and other areas to improve competitiveness and achieve sustainable growth.

▍Main initiatives▍KPI

Purchase

Stepping up store openings, marketing, and alliances• Opening 90 new KOMEHYO purchase centers inthree years

QCD

Improving the quality of reworking andmaintenance, reducing lead time, and enhancing
merchandising
Expanding channels such as stores, e-commerce, andinbound tourists

RetailCorporate
sales• Opening one new KOMEHYO large flagship store
per year

Enhancing in-house auctions and distributing goods
more widely▍New store opening▍Collaboration and utilization of assets• Purchase centers• Customer data

• Stores annexed with purchasefacilities (Japan and othercountries)• Product data

• Product editing type store• Marketing• Flagship stores• Brand power• Appraiser training scheme• Trying new store formats©Komehyo Holdings Co .,Ltd. 41

Basic Policy 1⃣

Achieving business growth

BF business: (1) Trading business (Global)

Open stores in regions with large growth potential and build new channels.

▍Main initiatives▍KPI• Opening new stores in a wider area (North America, ASEAN,
and East Asia)• Overseas sales: 15%• Building a global reuse chain (QCD, B to B reinforcement)• Number of new store openings: 30 or more

▍Future vision- Global reuse chain
Establish a system of local production for local consumption ineach country/region and understand the characteristics of themarket. Develop the system into inter-regional transactions.
• Local production for local consumption within aregion (for illustration purposes only)
Purchase

Japan
North
America

East
Asia

Sale

ASEAN
Individual

Individual

Corporation

Corporation

Evolving intocross-bordertransactions©Komehyo Holdings Co .,Ltd. 42

Basic Policy 1⃣ Achieving business growth

BF business(2) Businesses that contribute to distribution

Increase GMV (trading volume) through activation of auctions and in -store purchases. Strengthen intra-groupcooperation and franchise (FC) network.

▍Main initiatives▍KPI• Expand the number of overseas auction members• Number of auction items +140% (2026.3)• Expand marketing to acquire auction members• Overseas member GMV as a percentage of trading
volume +30% (end of March 2025)• Acceleration of FC store openings• Strengthening collaboration between groups• BRAND OFF purchase specialty store 50 stores in 3
years

▍Auction GMV growth▍K-brand off FC store opening• Continuing to hold both real anddigital auctions• Increase in JBA distribution
volume through FC store
openings• Due to system changes, theratio of overseas members to
trading volume has increased• Increase in distribution volume
through DX• Continued expansion of store
openings, including multiple
store openings by major
corporations©Komehyo Holdings Co .,Ltd. 43

Basic Policy 1⃣ Achieving business growth

BF business(3) Businesses that contribute to market growth

Achieve business growth beyond conventional frameworks by providing inspection services to the domain of
CtoC reuse of brand goods and building a reuse platform that leverages data and technologies.

▍Main initiatives
Inspection
business• Providing services to CtoC market• Improving efficiency and quality using AI

newbusiness• Building a reuse platform using OMRIS*, the core system• Strengthening alliances with other industries and creating
markets• New technology development and new business utilizing open
innovation, etc.

▍事例

Provision of KOMEHYO Kantei, a brand inspection
service, to Rakuten Rakuma (Jan. 2024 - )Introduction of AI-based assessmentof authenticity and model numbers

Building an OMRIS-based reuse
platform＊Our core system (system that handles everything from purchasing to inventory management, listing on multiple EC malls, and order/shipping management)©Komehyo Holdings Co .,Ltd. 44

Basic Policy 1⃣ Achieving business growth

BF business
Strengthen market responsivenessBased on our extensive track record of transactions at in -house auctions, etc., we identify changes in market prices at an earlystage and take appropriate countermeasures in a timely manner. We ensure profit accumulation and minimize the negative
impacts.
When the market is soft
= Gross margins tend to decline▍Market fluctuations and their impact on business• Setting purchase prices with a good balancePrice• Emphasizing inventory turnover Strengthening
corporate sales• Reduce the price to the optimal selling price

When the market is strong= Gross margins trend higher• Active purchasing• Emphasizing the balance between retail andcorporate sales• Lowering sales prices to appropriate levels

Sophistication of market
response
Stable purchases from individuals(customer base and price control)
Scale of retailing (customer base and channels)

Time

Advanced inventory control (by product, by channel, quality, latent profit, and speed)©Komehyo Holdings Co .,Ltd. 45

Basic Policy 1⃣

Achieving business growth

BF business M&A Strategy

Consider M&A in overseas markets with excellent growth potential and areas that will lead to higher customer
value, aiming to strengthen the business portfolio in addition to achieving organic growth.

▍Approach to alliances

Expand the scale and strengthen competitiveness of existing businesses

highSynergies of M&A and integration• Increasing the number of stores and expanding areas in the Brand Fashion
business• Enhancing purchase/sales channels (e -commerce, visits, home delivery,
cross-border, pawn)• Operation of auctions•

Businesses and companies that contribute to improving added value andoperational efficiency (DX of repair and value chain)• Overseas companies operating brand fashion business

Exploring unexplored areas• Businesses and companies with high affinity with the clientele(alcoholic beverages, antiques, paintings)

low©Komehyo Holdings Co .,Ltd. 46

Basic Policy 1⃣

Achieving business growth

TW Business Growth leveraging group strength

Demonstrate presence and competitiveness by involving three Group companies in main processes of the supply
chain, each achieving growth. Achieve stable increases in sales and profit.

Primary distribution

Secondary distribution

製造

買取

販売

一
般
の
お
客
さ
ま

企画・開発

国内量販店
製造（OEM）

メーカー

販売

海外

中
古
品
取
扱
事
業
者

商
品
化

一
般
の
お
客
さ
ま

Integrating the supply chain within the Group©Komehyo Holdings Co .,Ltd. 47

Basic Policy 1⃣

Achieving business growth

TW business Area strategy

Demonstrate presence and competitiveness by involving three Group companies in main processes of the supply
chain, each achieving growth. Achieve stable increases in sales and profit.

▍Main initiatives
DomesticNew
Used

Global▍KPI• Stepping up store openings, marketing, and e commerce• Expanding trade-ins• Overseas sales ratio of 10%• Ratio of sales of secondhand goods to total sales of 20%• Strengthening e-commerce (improving the quality
and efficiency of the process of preparing
secondhand items for resale)• Increasing the brand power and visibility of BRADLEY• Expanding sales channels and accelerating product development▍ Par t icipat ing in event s such as exhibit ionsTokyo Auto Salon（2024.1）

In-house planned wheel(Bradley etc.)▍Strengthen promotion▍Developing various purchasing/assessment methods

In-store purchaseOn-site purchase(corporate)

LINE assessment©Komehyo Holdings Co .,Ltd. 48

Basic Policy ２⃣

Deepening sustainable management

Set the Basic Sustainability Policy to accelerate the expansion of our reuse businesses and the penetration of relay use, bas ed on
the understanding that our businesses themselves represent sustainability. Help to build a truly affluent society by eliminat ing
environmental destruction caused by mass production, consumption, and disposal.

Sustainability Policy

Komehyo Holdings Group contributes to the creation of affluent
lifestyles and the realization of a sustainable society by building arelay use culture, a concept connecting “things” and “feelings” fromone person to another.

Market Creation

Business Growth

To achieve sustainable production
and consumption, we enhance thevalue of used products and createa healthy reuse market.

We are committed to addressing
environmental and social challenges andachieving corporate growth at the sametime through responsible businessactivities centered on relay use.

Co-Creation with
Stakeholders
We build relationships of trust withstakeholders with integrity andfulfill our social responsibilities as
a company chosen by them.

©Komehyo Holdings Co .,Ltd. 49

Basic Policy ２⃣

Deepening sustainable management

Contribution to SDGs

Contribute to the realization of a truly affluent society based on a circular economy by building a relay -use value chain. Aim toachieve "Responsible Consumption and Production," which is one of the SDGs, with our businesses themselves.

▍Relay-use value chain▍Contribution to SDGs

Developing the reusemarket further

Making reuse a common
practice in society

Contribute to market
development by proposing
high-quality items byleveraging the diversity of
products such as new,unused, and reused products.

Promoting education andcreating opportunities tobreak away from the social
structure of mass production
and mass consumption

Restoring value with ourunique technicalcapabilities
Understand the inherent
value of things and create
new value by leveraging theknow-how accumulated overmany years

Sales

Purchase

Restoration

Appraisal

Pursuing fairsustainability
Creating a healthy reusemarket where everyone canfeel safe using our group's"technology to assess value"©Komehyo Holdings Co .,Ltd. 50

Basic Policy ２⃣

Deepening sustainable management

Materiality

Set priority social issues that the Group should address as material issues, from the perspective of ESG. Expand
businesses and increase the number of people who are sympathetic to relay use by advancing related measures,
thus helping realize a sustainable society.
Materiality of our group
Realization of a recycling societythat follows the great cycles of theearth・Action on climate change
・Investments that contribute to being
nature positive
・Promoting resource recycling throughRespect for diversity andintegrity

E

S

Environment

Society• Utilization of diverse human resources• Promote health and productivity management• Coexistence with local communities

reuse

G
GovernanceFuture-oriented governance for
eternal growth and development・Active dialogue with stakeholders
・Strengthening of the group governancesystem・Solving social issues through businessactivities©Komehyo Holdings Co .,Ltd. 51

Basic Policy ２⃣

Deepening sustainable management

Improving individual performance through humanresource development and organizational development

At the Company, where human resources are the growth driver, both human resource development and organizational development, which
support our businesses, are important management tasks that we need to work on over the medium and long terms. We will focus our efforts
on building a system for improving the performance of each individual and maximizing the team strengths, by focusing on both humanresources and the organization.

Basic approach to human resource management
The skills you possess

How you feel about what you do

Performance
Specialized skills

Priority items• "A rewarding work environment"• "Career formation"• "Diversity"• “Instillation of values”

Portable skills

Measures

Mind

Amount of heat

KPI

• Revision to and operation of a points-addition
personnel system• Human resource retention rate of
90% or higher• Enhancing training and educational programs• Increase in sales per person*1(Results for the fiscal year ending
March 2024: 85 million yen)

• Communication design based on purposes• Holding a Future Conference for considering thefuture of the team

※１Consolidated sales/consolidated number of full-time employees※２Total Motivation• Improving the ToMo Index ※2(May2024 : 23.2pt）©Komehyo Holdings Co .,Ltd. 52

Basic Policy ２⃣

Deepening sustainable management

Contribution to a carbon -neutral society

Set and visualize quantitative targets for GHG emissions/reduced contributions. In addition, we will deepen ourcontribution to a carbon-neutral society by expanding our reuse business.
▍Quantitative target
GHG emissions(Scope 1 and 2)

2022

2030年

42%
reduction

Changes in GHG emissions/avoided GHG emissions(for illustration purposes only)（t-CO2）GHG
emissionsGHGe m is s io n s
a v oid e d d u e
to re u s e

Scope1+2

Scope3

GHG emissions avoided due to reuse

Reducing and avoiding GHG
emissions

3,003 ※

simultaneously
through reuse• Achieving Scope 1 and 2
reduction targets• Visualizing Scope 3 emissions
and setting reduction targets

2022

2023

2024

2030

Business expansion※ Scope1:292t-CO2

Scope2:2,711t-CO2©Komehyo Holdings Co .,Ltd. 53

Basic Policy ２⃣

Deepening sustainable management

Strengthening Group Governance

Promote the creation of a strong governance structure that is in line with the Group's sustainable growth,
including business expansion and global development, as well as changes in the business environment.

▍Policy▍Priority measures
Redefining critical risks
Strengthening Group BCM*

Strengthening
complianceand driving risk
management

Taking actions toaccelerate global
expansion＊Business Continuity Management

Upgrading risk management
systems
Enhancing training andeducation
Collaborating with the
Sustainability Committee
Reinforcing the information
security system

Future-oriented
Governancefor eternal growth anddevelopment

Reinforcing the whistleblowing system
Strengthening tax
governance
Reviewing the personnel
system©Komehyo Holdings Co .,Ltd. 54

Basic Policy 3⃣

Advancing management with an awareness of capital cost

Analysi s and evaluat ion of cur r ent sit uat ion

Fresh inventory is essential for building up profits in the reuse business. In the most recent period, purchases from individ uals
remained strong due in part to the store opening strategy. This led to revenue growth, resulting in ROIC and ROE exceeding th e
cost of capital▍Status for the fiscal year ending March 2024
ROIC

WACC

11.2%

6.7%

19.2%

程度

▍ROIC and ROE trends
ROIC

Cost of equity

ROE

9.8%

程度

19.2
16.7

ROE

Level above the cost of capital
11.7

（％）

9.6

11.2

7.9

0.2
△ 1.2
2020.31.4△ 3.2
2021.32022.32023.32024.3©Komehyo Holdings Co .,Ltd. 55

Basic Policy 3⃣

Advancing management with an awareness of capital cost

Policy/Plan

We will continue to strive to maintain ROE, etc. that exceeds the cost of capital. Furthermore, by implementing growthinvestments and stable shareholder returns while ensuring financial soundness, we will maintain a high level of ROE that exce eds
the cost of capital and improve corporate value.

Growth investment• Securing inventory that is essential for sales growth• Strengthening human resources who support the Group(recruitment, training, reskilling)• Creating new points of contact with customers (opening newstores, etc.)• Acquiring advanced technologies for driving DX• Increasing market share in overseas markets (such as acquiring
partners)• Searching for new business

ROE of

18% or higher
Capital adequacy ofapprox. 45%
Dividend payout ratio of

approx. 20%

Shareholder return• Stable dividend increase©Komehyo Holdings Co .,Ltd. 56

Basic Policy 3⃣

Advancing management with an awareness of capital cost

Initiatives

Make exhaustive efforts to increase margins, improve capital efficiency, and use financial leverage in order to achieve an RO E of
18% or higher, based on the premise that business growth exceeding market growth will be achieved. Control the cost of capitalthrough constructive dialogue with the market.

▍Initiatives to Improve ROE(1) Increasing margins

Improving the gross profit
marginReducing expense ratio

Improve
ROE(2) Improving asset efficiency(3) Using financial leverageControlling inventory

Improving the ratio of gross profit toinventory investment(gross profit margin
× inventory turnover)
Improving the BEP ratio (break-even point
sales / net sales)

Managing fixed assets (speeding up
investment recovery)

Improving fixed asset turnoverUsing borrowings in line withbusiness growth

Ensuring optimal capital adequacy ratio▍Promoting dialogue with the market (strengthening IR activities)

Financialresults
briefing• For institutional investors and analysts:
Holding quarterly online briefings via video
streaming• For individual investors: Holding online
briefings (held twice in 2023)

Individual IR
interview

Others• Fiscal year ending March 2023: 128 cases,• Fiscal year ending March 2024: 168 cases• Disclosing information in English and disclosing
the monthly results of the Brand Fashion business©Komehyo Holdings Co .,Ltd. 57

Basic Policy 3⃣

Advancing management with an awareness of capital costshareholder return

Enhance shareholder returns to maintain an appropriate capital adequacy ratio and enhance corporate value.
Continue to focus efforts on ensuring stable dividends and increasing dividends based on higher sales and profits.
New Medium-termManagem ent P lan（yen）interim dividend(yen)141

Year-end dividend(yen)(forecast)

121

100

101

88

81

41

32

26
21

Strive for stable dividend
increases

60

61

24

12

32
16

1

2010.3

Dividend
payoutratio(%)

24.8

2014.3…

15.5…

2019.32020.32021.32022.32023.32024.32025.3

34.7

25.0

－

15.5

17.7

20.0

21.1

2026.32027.32028.3©Komehyo Holdings Co .,Ltd. 58

5. Initiatives for the fiscal year ending March 2025

©Komehyo Holdings Co .,Ltd. 59

Consolidated and business segment plans for the fiscal year ending March 2025
Plans for increased sales and profits in both the BF business and the TW business

Earnings forecast by segment for the FY 2025

Consolidated earnings forecast for the FY 2025

（million of yen)

Operatingmargin2,930
4.6%

140,000
8,000

Tire and
Wheel

Operatingincome64,000FY
Brand
FashionNet sales

1H

5.7%
Real estateleasing（million of yen)

FY2024

ChangeNet sales

114,335

134,187

19,852

Operatingincome

6,891

7,644

753

Operatingmargin

6.0%

5.7%

△0.3

Net sales

5,073

5,526

453

Operatingincome

267

270

3

Operatingmargin

5.3%

4.9%

△0.4

Net sales

287

287

±0

Operatingincome8686±0Operatingmargin

30%

30%

‐

FY2025©Komehyo Holdings Co .,Ltd. 60

Forecast of Consolidated Earnings Results by Quarter
Market conditions are expected to remain flat in the first quarter of this fiscal year, and personnel expenses are expected t o increase. As a result,although sales are expected to remain at the same level as last year or slightly increase, profits are expected to be lower t han the same period last year.
For the full year, we expect sales and profits to increase year on year, assuming that business performance will continue to be strong in the second half.

Net sales

Operating income(million of yen)(million of yen)

Full-year sales expected
to increase

Despite softness in the first
half, full-year profit is expected
to increase due to the effect ofhigher sales in the second half.

A year-on-year decrease
attributed to rising costs

35,31831,3772,331

27,66825,096

1,911

1,724
1,486

1Q

2Q

3Q

2024.3

4Q

1Q

2Q

3Q

2025.3

4Q

1Q

2Q

3Q

2024.3

4Q

1Q

2Q

3Q

4Q

2025.3©Komehyo Holdings Co .,Ltd. 61

Analysis of consolidated operating income (forecast)
Sales are expected to increase 116.5% compared to the previous fiscal year due to increased purchasing. The company aims to
improve gross profit margin by 1 to 1.5 points for the full year. SG&A expenses increased by 30% due to active investment in
human resources, sales outlets, and IT. Aiming for a record high operating income of 7.9% year -on-year increase（million of yen）

Net sales
Strengthen both individual purchasing andcorporate purchasing. Sales increased by
16.5% due to store openings in Japan andoverseas, strengthening of EC, inbounddemand, etc.

Gross profit margin
The first half is expected to be at the same level
as the previous fiscal year, assuming that theinter-corporate transaction market will remain
flat. Expected to improve by around 2 points in thesecond half, and improve by 1.4 points for the fullyear

SQ&A expenses
SG&A expenses are expected to increasesignificantly due to aggressive investment in
human resources, store openings, IT, etc. tostrengthen retail and expand globally.

©Komehyo Holdings Co .,Ltd. 62

Rearrangement of given matters that will affect this fiscal year's performance
The brand reuse market is in an expansion phase both domestically and internationally. A business environment that allows
business growth by leveraging competitive advantages, provided that store opening properties and human resources recruitment
proceed as planned.

External environment/opportunity

Internal environment/approach・Demand for high-priced items remains strong, and the brand reusemarket is expected to continue growing.

・As the domestic and overseas markets are in an expansion phase, weneed to increase our presence in the industry by expanding our sales share.

- Due to new entrants and store openings by competing companies,
purchase competition in each region and competition to acquire
properties for new store openings are intensifying. As the market
expands, social issues related to purchasing are also emerging, andreuse businesses are required to be sound and transparent, as“purchasing” is subject to the Act on Unfair Representations*.

・In addition to the growth of each group company and brand, we aremoving into a phase where we are increasing the driving force andcollaboration of our mainstay branded fashion business.

・Current duty-free sales are also strong. Inbound demand is expected
to remain strong, assuming the yen does not trend towards an extreme
appreciation.

- Domestic reuse businesses are expanding overseas. The overseas
reuse market is energized by the increasing number of companies
expanding into Asia, mainly in Asia.
・In recent years, industry reorganization has become active. Weak
market conditions from the end of 2023 onward may lead to further
restructuring.

・In order to actively utilize corporate purchasing, it is necessary to increase
the speed of growth by working on new store formats and improving profits.
・As the business expands, we are hiring not only sales personnel such as
appraisers, but also personnel in indirect departments.
It is also necessary to expand. talent pool for next-generation management
and leadership, etc.
Always review forward-looking succession plans and development plans
Up・Strengthening global expansion is essential for future sustainable growth.
Continuous investment for the future, including promoting store openings,
strengthening cross-border e-commerce, and human resource development*April 18, 2024 Consumer Affairs Agency Public Notice “Regarding operational standards for public notices specifying premiums, etc.”©Komehyo Holdings Co .,Ltd. 63

Market price forecast for main products for the fiscal year ending March 2025
The market trends for each product, which are the premise of this fiscal year's plan, are currently expected to be as follows , andunless there are sudden changes in the external environment such as exchange rates, each product is expected to remain flat o r
increase gradually.

Jewelry
Domestic retail gold prices are expected to remain flat or risemoderately, remaining at record high levels. If the yen
appreciates in exchange rates, there is a possibility that there
will be a temporary decline.
The market price of diamonds is expected to recover gradually,
and the market price of melee diamonds (small stones) is
expected to remain stable.
As for branded jewelry, prices continue to rise for popular items
from popular brands that are in high retail demand and forvintage items that can only be obtained second-hand.

Bags
There are no major changes in the needs for branded items bothin Japan and overseas, and the market prices of popular items
and retail items are expected to gradually rise after bottoming
out.
The impact on the used product market due to the increase in
primary distribution prices for each brand is expected to belimited.
Inbound demand is expected to remain strong, so there is apossibility that some items, especially vintage items, will rise in
price.

Watches
After bottoming out at the end of 2023, there will be a gradual
recovery trend for popular brands and popular items. The
upward trend is expected to continue in the future. Brands anditems that are not in high demand are expected to remain flat,and market prices are expected to differ depending on demand.
Sales prices of used products are expected to remain stable.
Inter-corporate transactions are strongly influenced byexchange rates, so if the yen becomes extremely strong, there
is a possibility that the market price will decline.

FashionAs with the previous period, although there is someseasonality, there are no major market fluctuations
overall, and market prices are controlled by model year
and condition.
Prices are expected to rise for highly rare items such as
some popular luxury brand fashion and vintage items.

©Komehyo Holdings Co .,Ltd. 64

Initiatives for the fiscal
year ending March 2025

Initiatives of each brand 1⃣

Continue to strengthen purchases mainly through new store openings, while bolstering retail through new store openings
and e-commerce, in Japan and other countries.
Opening a purchasespecialty store

Strengthening existingpurchasing channels

・Opening 30 to 40 purchasecenters, mainly in Tokyo,
Nagoya, and Osaka・Alliance-Department store-Financial institutions
・On-site purchase・Delivery purchase▍Purchase center

Aiming to increase purchases by 1.5 to 2
billion yen through new store openings

Opening a sales store
・New store opening-Nagoya main store BAG+
-Nihonbashi store-LaLa port Aichi Togo
- Considering openinga large store- Considering opening
an editorial store▍Sales store

Opening of small and medium-sized
retail stores with purchasing facilities

Strengthen global
expansion・Expansion of area and stores-Opening of 5th store in Thailand-Sales start in Singapore-Start purchasing in Malaysia-Strengthen cross-border EC▍Global expansion

Store expansion in ASEAN©Komehyo Holdings Co .,Ltd. 65

Initiatives for the fiscal
year ending March 2025

Initiatives of each brand ２⃣

BRAND OFF will strengthen domestic and overseas e -commerce sales by linking inventory with RECLO and MIKEMUSEUM. Aggressive new store openings will be continued overseas, mainly in Hong Kong and Taiwan.

Strengthening retail

Expansion of RECLO

・Strengthen CRM
・Incorporate global
generation Z
・Strengthening in-house EC

・Promotion of PMI・Strengthen cross-border ecommerce, which is ourstrength, through inventory
collaboration

Cooperation with MIKEMUSEUM

Strengthen global
expansion

・Strengthen sales on
domestic platforms throughinventory collaboration

・Strengthening cooperation
between Hong Kong andShanghai・New store openings inHong Kong and Taiwan‘’BRAND OFF‘’ inventory will be linked with ‘’RECLO‘’
and ‘’MIKE MUSEUM'' to strengthen online contact points.
▍Strengthening EC

Increase the number of areas throughinventory collaboration▍Retail expansion in Hong Kong

Continuing to open new storesbacked by high recognition▍Retail expansion in Taiwan

Maintained strong performance due
to relocation and store openings©Komehyo Holdings Co .,Ltd. 66

Initiatives for the fiscal
year ending March 2025

Initiatives of each brand 3⃣ Auction/Brands aiming to be the Only One

Leverage the strengths of each of the two auctions to expand the number of members and trading volume by capturing a wide
range of needs Continue to refine the appeal of the brand to continue to be supported by fans as a unique brandCorporate auction・Acquisition of members in North
America・Increase in number of listings due toimproved productivity

・Opening a store specializingin FC purchase・Continuation of real events

Increase the number of members and trading volume
through collaboration

Working to expand GMV and improve productivity

A brand aiming to be the Only One

・Strengthening online contact
points-EC site renewal-CRM using LINE
- Utilization of domestic andinternational SNS- Core system replacement

・Strengthening purchasing
domestically and overseas
・Interaction with overseas
independent watchmakers andsmall maisons・Construction of CRM
using LINE
・Improve the ability to
attract customers to yourown EC site

WORM

ShellmanStrengthening purchase and sales at stores

Differentiation with products from overseas
independent watchmakers©Komehyo Holdings Co .,Ltd. 67

Initiatives for the fiscal
year ending March 2025

Initiatives of each brand 4⃣⃣⃣⃣ Tire and wheel business
Aim for record sales of 10 billion yen by leveraging the characteristics of the three companies.

Product development and expansionof overseas sales channels
・New productdevelopment
・Product branding
・Acquisition of new
overseas partners

Expand sales and strengthen usedpurchasing

Product management and online
enhancement

・Promotion of store opening
plan-New store opening-Change of business format
・Strengthening customer
contact points through events
・Strengthening trade-in・Strengthening usedpurchasing-Corporation-Individual
・Used goods store
development
・Strengthen online
sales

Hiring and training human resources to promote the tire and wheel business / Strengthening the supply chain within the group(core system/market system)

Promote products domestically andinternationally at exhibitions, etc.

Strengthen in-store sales
and trade-ins

Actively hold events that serve as
points of contact with customers©Komehyo Holdings Co .,Ltd. 68

6. Appendix©Komehyo Holdings Co .,Ltd. 69

Corporate Profile
Company name

Komehyo Holdings Co., Ltd.

EstablishedMay 1979

Head Office

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

Representative
CapitalNo. of employees
Business activities
Fiscal year-end
Stock※Transition to holding company system in October 2020

President, Representative Director: Takuji Ishihara
1,803 million yen
Consolidated: 1,405

Non-consolidated: 28 (As of March 2024)

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

MarchTokyo and Nagoya Stock Exchanges (Securities code: 2780; Unit: 100 shares)©Komehyo Holdings Co .,Ltd. 70

Human Capital Data
In the relay use business model, the roles played by people are wide -ranging (knowledge, skills, expertise, speed, connections
with customers, etc.), and promoting the development and retention of human resources leads to improvements in businessperformance and corporate value.
Number of consolidated full-time employees ＊2

Talent retention rate ＊1

1,405people
Ratio of female
managers ＊2

20.0

％

82.1

％

85

%

consolidated

38.2

%

Full-time employee

41.0％ TW business5.7％

ToMo ＊3

Engagement score ＊1 ＊4

23.2

70(B-)All workers

73.9

%

50.6％ Part-time/fixed-term employee73.6％
Paid acquisition rate ＊1

Full-time employee
All workers*1 Results for the fiscal year ending March 2024 *2 As of the end of March 2024
*3 Abbreviation for Total Motivation, which quantifies the “overall motivation” that affects work performance.

百万円

Wage gap ratio ＊1

Female employee ratio ＊2

BF businessRate of male childcare
leave taken ＊1

92

Sales per full-time employee ＊1*4 Komehyo Co., Ltd.

61.4

%

66.2％ Part-time/fixed-term employee78.3％©Komehyo Holdings Co .,Ltd. 71

Corporate governance system
To ensure that management respects the interests of not only shareholders but also employees, customers, business partners,
creditors, local communities and others who have a significant impact on or interest in the Komehyo Group, the Komehyo Group istackling the strengthening of corporate governance based on management efficiency, improved operating results and an emphasison compliance as a priority issue.
株主総会
取締役の選解任

会計監査人の選解任〔監督・監査〕
指名・報酬委員会
サステナビリティ委員会

連携
監査

取締役

取締役監査等委員(社内1名・社外2名)(社内3名・社外3名)

答申

執行役員の選解任〔業務執行〕

監査等委員会

取締役会

諮問

監督

監査

代表取締役執行役員

会
計
監
査
人

報告

指示
報告

主要な経営会議体
リスクマネジメント委員会

諮問

エグゼクティブ・コミッティ

コンプライアンス委員会

内部監査部
連携

答申
内部監査

リスク管理

内部統制

指示

報告

会計
監査

執行部門・グループ会社©Komehyo Holdings Co .,Ltd. 72Officer system
We defined key areas where directors are expected to demonstrate their capabilities in a skills matrix, with the aim ofcontinuously improving the audit function that is to fulfilled by the Company's directors. Leveraging their diverse backgroun ds, we
strive to achieve medium- to long-term growth for the Group while strengthening governance.

▍Officer skill matrix
Major skills and careers●

Yuya
YamauchiDirector●●●

MasaruHirauchiOutside director

●

●

●

●

YoshikoNakahara

Outside director

●

Junji
Takaoka

Outside director●

Kazutoshi
ToritaDirector (Audit andSupervisory Committee
Member)MiyukiMinamiru

Director (Audit andSupervisory Committee
Member)MomokoMuraseDirector (Audit andSupervisory Committee
Member)

●
●

●

●

●
●

●

Certifiedaccountant
Taxaccountant●

Lawyer

●

・

●

●
●

●

●

●

●

●

●
MBA

ESG
Sustainable●・

governanceManaging Director

ToshioSawadaMBA・

Legal Risk
Management

Businessdevelopment
and innovation●

President andRepresentative
Director・

Finance
Accounting

Experienceandknowledge in
the industry●

TakujiIshihara

Qualificat
ions, etc.

Personnel
strategyMarketing●OutsideDirectorIT DX

Management
strategy andplanning●

Position

GlobalCorporate
management

●

Name

●

●

●

●

●

●

●

●

●

●

●

●
©Komehyo Holdings Co .,Ltd. 73

Business/service introduction ||The main brand of Komehyo Holdings, which mainly sells and buys used brand products. Aiming to improve
market standards by creating "curiosity" among customers and society toward a seamless purchasing experience
between online and offline▍Store development▍Customer attributes by productJewelry

50s・Female

Watches

50s・Male

40s・Female

Bags
Fashion

30s・ Male and Female▍Changes in the number of members*2 composition ratio
・151 stores in Japan, 4 stores in Thailand, and 1 base in Singapore *1
・Sales outlets such as domestic flagship stores will be opened mainly in major

cities in Japan.
Purchasing specialty stores open stores along the way of customers' lives with thePurchase + EC
0.9%→0.9%

EC only
7.2%→8.3%

In-store + EC
0.7%→0.8%

concept of ``purchasing at safe, usual, and nearby locations.''

Purchase only
36.7%→38.4%

・All stores are directly managed, and appraisers who have undergone thecompany's certification system are in charge of purchasing.

・A department specializing in education systematizes the training process andcurriculum for appraisers.
We enable speedy store openings by producing efficient and stable humanresources.
＊1＊3

Purchase +In-store
10.6%→10.3%

In-store only
43.4%→40.5%
Use all
0.7%→0.8%

Only about 10% of people use buying and selling at the same time. Focus onbuilding relationships with customers through store openings and OMO *3
strategies, one-to-one customer service, and promote mutual use.

As of the end of March 2024 ＊2 Number of KOMEHYO membership card members UU Comparison of 2014 -2023 → 2014-2024
Abbreviation for online merge offline, which refers to the fusion of online (EC) and offline (store)©Komehyo Holdings Co .,Ltd. 74

Trends in purchase price per customer by product|
As we strengthened our purchasing activities in response to the market decline, the average purchase price per customer for s ome
products fell below the previous year in the fourth quarter, but overall sales remained stable for all products. By handling multiple
products, risks against market fluctuations can be diversified.
▍Trends for the 4Q of the fiscal year ending March 2024
Although the number of customers purchasing
gold bullion has stabilized, domestic retail gold
prices continue to trend upward. Although there
was an impact from the decline in diamondprices, the overall purchase price per customer
remained flat.

Jewelry

Watches

Bags

FashionALL(YoY)
Due to the market decline from November toDecember, we strengthened our purchasing
efforts at well-balanced prices. Purchase unit
price increased compared to the same month
last year due to increased overseas demand due
to exchange rate effects

Contrary to last year's upward trend in market
prices, the market bottomed out in December
and remained flat, resulting in a decline inaverage customer spending. Recently, there has
been a gradual recovery trend after a feeling ofbottoming out, with a recovery in March.
In clothing, we continued to strategicallystrengthen purchases of high-priced products
from the previous fiscal year. As purchases
continue to be strong, there has been no majorchange in the unit purchase price compared tothe same month last year.

150%

100%

Bags and watches have declined due to market
price decline.
Setting purchase prices with a sharp balance

AP R
2023

M AY

JUN

JUL

AU G

SEP

OCT

NEV

DEC

J AN
2024

FEB

M AR

©Komehyo Holdings Co .,Ltd. 75

Business/service introduction ||Mainly sells, purchases, and quality used branded products. The tax -free ratio of sales is high, and the company has
a particular strength in selling bags. Operates the corporate auction “JBA” and contributes to improving profitability▍Store development▍Strengthen EC‘’BRAND OFF‘’ inventory is linked with the group‘’RECLO‘’ and ‘’MIKE MUSEUM‘’ to strengthen
online contact points.
※2

・Operates EC site “RECLO” that buys andsells used branded products

・40 stores in Japan and 15 stores overseas (Hong Kong, Taiwan, Shanghai, China)*1
・Headquartered in Kanazawa City, Ishikawa Prefecture, has a strong customer base mainly in
the Hokuriku region of Japan.

・We have a strong base of individual
customers on sites such as Tmall, the largest
e-commerce site in mainland China, and wehave strength in cross-border e-commerce.

Actively opening FC-style purchasing specialty stores to revitalize auctions
FC purchasing specialty stores account for approximately 70% of domestic stores
・Expanded overseas since 2008. We are expanding our store network by leveraging the highrecognition we have cultivated in Greater China and store management know-how.

Operates the e-commerce site "MIKEMUSEUM" that sells new apparel, shoes, shoecare products, and accessories purchased
domestically and overseas.

＊1 Results for the fiscal year ending March 2024
＊2 On April 3, 2024, K-Brand Off Co., Ltd. acquired the shares of RECLO Co., Ltd. and became a group. An absorption-type merger is planned on July 1, 2024, with K-Brand off as the surviving company and RECLO as the dissolving company.

©Komehyo Holdings Co .,Ltd. 76

Business/service introduction ||Operate corporate auctions “KOMEHYO Auction” and “Japan Brand Auction (JBA)” Increase GMV (volume) and
improve profitability through auction fees*1▍KOMEHYO Auction

Operated by KOMEHYO Auction Co., Ltd.

・Transition from real-life auctions to online auctions due to the coronavirus pandemic
・Using the inspection know-how cultivated by Komehyo HD, we support sellers andbuyers.
・Bids from overseas are also possible
・Listings by other reuse businesses account for the majority, 70%*2

Products handled＊1▍Japan Brand Auction (JBA)・3 types of holding formats: hand auction, bidding, and online auction
・While the number of online events is increasing, real-life events are proving useful
and are performing well.
・Purchased items from BRAND OFF purchase specialty store (FC) are displayed,
Contribute to auction GMV

Event format

jewelry/watches/bags

OnlineBidding up method
Twice a month

ApparelOnlineBidding up method
Once a month

Commission income from both seller and buyer

Operated by K-Brand Off Co., Ltd.

Event format

JBA Kanazawa

RealBidding up method Once a month

JBA Tokyo

Real

Bidding method Once a month

JBA Live net

OnlineBidding up method Monday & Thursday＊2 As of the end of March 2024
©Komehyo Holdings Co .,Ltd. 77

Business/service introduction |A brand specializing in products. Aim to be one -of-a-kind with core fans.

▍WORM・Purchasing and selling premium sneakers

・Opens 2 stores in Japan. Sneakerenthusiasts gather from home and abroad
・With the concept of “SNEAKER GAMEFROM JAPAN TO THE WORLD.”, we also
handle rare products that have a market
value of tens of millions of yen and are only
available in a few pairs in the world.

▍Shellman

・Consignment and sale of antique watches
and jewelry, current watches made byindependent watchmakers, and original
Shellman watches.
・Opens 7 stores, mainly in directly managed
stores and department stores.
Supported by watch collectors both
domestically and internationally▍SELBY・Purchasing and selling jewelry
・Opened two jewelry specialty stores.
We focus on rare stones and rare brands andare supported by jewelry enthusiasts both
domestically and internationally.

・Purchasing from corporations accounts for
90% of the total, and sales include in-store
sales, live commerce, and EC.
Inventory turnover is high in the channel.

＊As of the end of March 2024
©Komehyo Holdings Co .,Ltd. 78

Business/service introduction|
A brand that handles new and used tires, wheels, etc. Integrated supply chain among three group companies▍Craft▍U-ICHIBAN/Auto Parts Japan・Purchasing and selling new tires andwheels・U-ICHIBAN
Purchase and sale of used tires and wheels

・We have a wide selection of high-end
wheels and coil over parts that are dressup items, and specialize in customizing
suspension parts.

・Auto Parts JapanWEB sales of used tires and wheels tradedin and purchased at Craft stores and newtires and wheels purchased by corporations.

・Highly specialized staff will makesuggestions for tire selection, alignment,
real matching, etc. according to customer
requests.

▍4×4 engineering service

・ Comprehensive manufacturer of wheels
and suspensions. The main product is the"BRADLEY" series of wheels designed inhouse. A long-selling full-fledged 4WD wheel
・ Actively participates in off-road driving
events, outdoor activities, camping events,
etc. in Japan. Aiming to expand the fan base・Aiming to expand overseas sales channels,
overseas exclusive models will also be
released.

＊As of the end of March 2024
©Komehyo Holdings Co .,Ltd. 79

Breakdown of domestic duty-free sales
More than half of the customers are from China (including Hong Kong), Taiwan, and Thailand, where KOMEHYO and BRAND OFF
have stores. 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(FY2024)
30.6%

26.9%

Others
22.5%
China

Domestic dutyfree sales

Thailand 4.6%

America

18.8%

40.4%

14.6%

（FY2024)

8.3%

9.0%
Philippine
s 10.7%

Taiwn
12.7%

0.7%
10s

0.0%
20s

30s

40s

50s

60s

uncertain*Aggregated by issuing country/region from passports©Komehyo Holdings Co .,Ltd. 80

Changes in gross merchandise value
GMV*, which indicates the scale of our business, is an indicator for the promotion of relay use.
Growth in GMV leads to business growth and higher profitability.

▍Changes in gross merchandise value
・Consolidated sales increased significantly（millions of yen）

1H

2H

150,809

・Expansion of auction GMV (volume)-KOMEHYO Auction
Increase in trading volume due to increase in number ofmembers and number of listings-Japan Brand Auction (JBA)
BRAND OFF aims to increase sales volume by listingpurchased items.
Although the opening of FC purchase specialty stores was
35% less than planned , The impact on plans is minor.
Real auction (JBA Kanazawa) performed particularly well andthe trading volume increased.

111,097
91,122・Increase in GMV from inspection business-Partnered with CtoC platform "Rakuten Rakuma",
Full-scale launch of inspection business from January 2024
FY2022

FY2023

FY2024※GMV is calculated simply by adding and subtracting sales and volume information at the KOMEHYO auction based on consolidated sales.
©Komehyo Holdings Co .,Ltd. 81

Disclaimer
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 op inions 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 i nformation.
Actual results may differ significantly from forecasts due to a variety of factors; therefore, investors should not place und ue reliance upon them.
In addition, this document is not intended to solicit investments. Investors should make investment decisions at their own di scretion.

IR contact
Komehyo Holdings Co.,Ltd.
IR・PR Department
Phone：+81-52-249-5366
E-mail：ir@komehyo.co.jp

This material was created by Komehyo Holdings Co., Ltd., and all rights to the content belong to us. Please refrain from any use beyond the scope permitted by law (copying, unauthorized reproduction, etc.).
©Komehyo Holdings Co .,Ltd. 82