Earnings Results Briefing
for the First Six Monthsof the Fiscal Year Ending
March 31, 2021
November 13,2020
Komehyo Holdings Co., Ltd.
Securities code: 2780
(Second Section, Tokyo and Nagoya Stock Exchanges)
Corporate Planning Department IR strategy group
Phone +81-52-249-5366

FY 2020 2Q Financial Summary【Performance Highlights】 After hitting bottom in 1Q, results showed signs of recovering in 2Q
Consolidated

FY2021 1H(Millions of yen)

YoY

KOMEHYOFY2021 1H(Millions of yen)

YoY

Net sales

20,81975.1％

Net sales

14,741

59.3％

Operating loss

△956－

Operatingloss△563－

Net loss attributableto owners of parent△1,379－Net loss△858－

Purchases fromindividual customers

6,544

52.2％

【Business Topics】
Brand・Fashion business
Operations for"new normal"
Enhancementof OMO

Openedfivepurchasecenters

Tire and Wheel business
Opened『KOMEHYOSHINJUKUWOMEN』

New wheel "Air/ G Rocks"
Release1

Economic Trend
Despite the impact of the Novel coronavirus, KOMEHYO sales are recovering
Net sales YoY(%)

Stock Price（yen）

Department store(fine arts/jewelry/precious metals)
KOMEHYO net sales(non-consolidated)

250The Novel coronavirus
Infectious disease spread

Nikkei Stock Average(monthly closing price)200
24,000

150
100
100

19,000tax hike50
0

14,00019.456789101112'20.1

2345678

FY2021(Source：JAPAN DEPARTMENT STORES)

9102

Overview of Income Statement（ Consolidated ）(Millions of yen)

FY2021
1Q

FY20212Q

YoY

FY2021
1H

YoY

YoY

Net sales

7,861

63.2％

12,95784.7％

20,81975.1％

Gross profit

1,888

55.2％

3,385

92.2％

5,273

74.3％

Gross profit
margin24.0％△3.5pt26.1％＋2.1pt25.3％△0.3ptSG&A
expenses

2,748

82.6％

3,481

101.0%

6,229

91.9％

Operatingincome

△860－

△96－

△956－

Ordinary
income

△937－

△107－

△1,044－△1,229－△149－△1,379－Net income
attributableto owners of parent

3

Overview of Income Statement（ KOMEHYO ）(Millions of yen)

FY2021
1Q

FY2021
2Q

YoY

YoY

FY2021
1H

YoY

Net sales

5,321

47.9％

9,420

68.5％

14,741

59.3％

Gross profit

1,192

40.7％

2,365

76.2％

3,558

59.0％

Gross profit
margin22.4％△4.0pt

25.1％＋2.5pt

24.1％△0.2ptSG&A
expenses

1,790

64.2％

2,331

80.8％

4,121

72.6％

Operatingincome△598－3415.9％△563－

Ordinary
income△648－

2612.5％△622－

Net income△881－

2316.0％△858－

4Trends in sales by sales channel（ KOMEHYO ）After hitting bottom in 1Q, results showed signs of recovering in 2Q（百万円）

RetailCorporate sales

13,731
12,266
11,133

11,080
6,084

9,398

5,434

4,609

5,615
5,302

6,470

7,647

6,832

4,508

2,703

5,517

4,890
2,599

FY2020-1QFY2020-2Q

FY2020-3Q

FY2020-4Q

FY2021-1Q

FY2021-2Q※ Real estate rental income is not included.

5

Gross Merchandise Value（ Consolidated ）Expected recovery from the second half
37,000Gross Merchandise Value (100 millions of yen)

(Schedule)

40,77836,42031,92632,962
27,638FY2019 1H

FY2019 2H

FY2020 1H

FY2020 2H

FY2021 1H

FY2021 2H

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

6Operating income increase and decrease factor（ Consolidated ）The company was forced to temporarily close stores and operated at a loss
due to a decline in net sales.
Operating income（△1,274）(Millions of yen)

317

FY2020 2Q

Sales amount

Increase in personnel expenses due tobusiness expansion△233
Increase in General and administrative
expenses due to rent etc.
△158
Decrease in selling expenses such as
advertising expenses+396
Rent and personnel expenses incurred
during temporary store shutdown
recorded as extraordinary expenses +540

△ 956

FY2021 2Q

decrease△1,767Gross Profit margindecrease△52

SG&A Expensesdecrease+5457Extraordinary income/Extraordinary loss
（ Consolidated ）Rent and personnel expenses incurred during temporary store shutdown
recorded as extraordinary expenses(Millions of yen)

1Q
Subsidy income 210
2Q
Subsidy income
84Others
8２Q 93
１Q 210Extraordinary income 303
1Q
Loss due to temporary closure
Loss on retirement of fixed assets, etc.
2Q
Loss on retirement of fixed assets, etc.
Loss due to temporary closure
Loss on cancellation of lease contract
Impairment loss

Extraordinary loss △649
1Q △ 506502343383229

2Q △ 1438Overview of Balance Sheet
Cash in reserves secured through borrowing to combat
the novel coronavirus pandemic
Assets38,495

Consolidated

Cash andLiabilities andNet Assets
35,611

Cash and deposits

deposits

Current

6,440

11,130Liabilities

Assets35,611

12,239Products
14,884

Products
13,095

Other current

Other current

assets4,124

assets3,475

Non-current

Non-current

assets 10,161

assets 10,793

FY2020

FY2021 1H

Non-current
liabilities 4,181

Current
Liabilities
14,631

Assets
28,668Cash anddeposits2,859

19,189FY2020Assets32,958Cash anddeposits8,492

Liabilities andNet Assets
Liabilities and32,958
Net Assets
28,668Current Liabilities

Current Liabilities

9,876

6,778
Non-current

Products

Products

Non-current

Non-current

liabilities 6,172

10,674

8,945

liabilities 3,664

liabilities 5,800

Net assets

Net assets

18,226

17,281

FY2020

FY2021 1H

Other current

Net assets(Millions of yen)

KOMEHYO

Liabilities andNet Assets
38,495

Net assets
17,692

FY2021 1H

assets 5,662

Other current
assets 5,162

Non-current

Non-current

assetsassets

9,471

10,357

FY2020

FY2021 1H

9Statement of Cash Flows（ Consolidated ）Measures such as product control resulted in a positive cash flow from operating activities
Cash flows from operating activities
Cash flows from financing activities

Cash flows from investing activities
Cash and cash equivalents(Millions of yen)

12,423

7,330
6,216

6,086
4,964

1,748

△ 1,011

4,178
1,447

2,113

△ 564

FY2019 1H△ 2,239

FY20191,213273△ 1,332

FY2020 1H

1,651
669

△ 1,268

FY20202,109△ 1,169

Fy2021 1H10

By Segment(Millions of yen)

FY2021
1Q

FY20212Q

YoY

FY20211H

YoY

YoY

BrandFashion
Tire andWheel

Other

Net sales

7,137

61.0％

12,15984.2％

19,296

73.8％

OperatingLoss(△)

△823－

△46－

△870－

Net sales

711

99.3％

780

94.6％

1,491

96.8％

OperatingLoss(△)

△33－

△47－

△80－

Net sales

1666.9％1986.4％3676.3％OperatingLoss(△)

△3－

△1－

△5－

11

Purchase from individual customers（ KOMEHYO ）During H1, five purchase centers were opened and purchasing events were held at 30 sites（百万円）

Purchase center260

264

5,818

6,213

Home delivery Purchasing
238
2476,357

Reduced due totemporary store
shutdown

229

4,774

1,690
FY2020 1Q

FY2020 2Q【AEON STYLE Higashi-totsuka ‘20.9】

FY2020 3Q

FY2020 4Q【Mosaic Mall Kohoku ’20.10】

FY2021 1Q

160
4,462
FY2021-2Q【Event：Tokyu Department Sapporo Store ‘20.8】

12

New store （ KOMEHYO ）A three-store system in the proximity of Shinjuku Station was completed,enhancing convenience for customers【KOMEHYO SHINJUKU WOMEN ’20.6】

13

Store Type （ KOMEHYO ）40 stores
Large-scale
Nagoya Store，Meieki Store,
Ginza Store，Umeda Store,
SHINJUKU
Sales/Purchase
Jewelry, precious metals,watches,bags,clothing,etc.

5 stores
Sale and purchase *Ladies casual clothing,Bags, small items, etc.

5storesMid-scaleOpening stores in large major cities
Sales/Purchase3stores

Small-scale
Opening stores in major cities
Sales/Purchase8stores

Purchasing Center
Opening stores in major cities

Purchase only24stores

3 stores
Sale and purchase *Clothing at a lower price point
Bags, small items, etc.
*Some stores only sell

Total 48 stores (’20.9)
14

Store Type（K-BRAND OFF）
Domestic :7 directly managed stores, 2 FC stores
Hong Kong:7 directly managed stores
Thailand :1 FC store
Taiwan:3 directly managed store
Total 20 Stores (‘20.9)

15

Enhancement of OMO （ KOMEHYO ）Renewal of EC site: Contact center improvements for the "new normal"
(百万円)

1,765
327

1,063

2,338
343
1,497

KOMEHYO website

Back orders

Others
2,006

1,906

1,817

354

355

1,253

415

1,073

998

284
496

1,059

373

496

478

462

472

531

FY2020 1Q

FY2020 2Q

FY2020 3Q

FY2020 4Q

FY2021 1Q

FY2021 2Q【Contact center improvements】
Centralized point of contact for queries from customers
・Telephone service for resolving any queries about
products on the EC site
・Option of shopping over the telephone,
without going into the store
・Proposal of optimal services based on past use【Improvement of one-to-one communication】
One-to-one communication with customers via
smartphones for customer service
・Customer needs are met, building trust in staff andimproving customer satisfaction
・Use of LINE and SMS facilitates timely communication

16

AI Authenticator"Authentication check" and "date code check" functions currently being tested at Nagoya main branch【Assessment using AI authenticator】【Purpose of development】
Formation of reuse market which customers can use
with peace of mind
・Improvement of communication with customers
・Elimination of counterfeit goods
・Global expansion
・Quicker development of assessors【Overview】
Introduced stores : KOMEHYO Nagoya main branch※To be gradually rolled out to other stores after testing

Corresponding brand : Louis Vuitton
Corresponding product : Bags, wallets, accessories
99% accurate (varies depending on the model)

17Overseas expansion(KOMEHYO SHANG-HAI・SAHA KOMEHYO)
Acceleration of global expansion through store openings in Shanghai, China and Thailand【’20.9 KOMEHYO Shanghai Opend】【’20.10 KOMEHYO@Central Bangna Opened】※KOMEHYO Shanghai to be opened forlimited one-year period only18

Auction （KOMEHYO Auction・K-BRAND OFF）
Switch to online bidding auction from May （KOMEHYO Auction)
Trade volume(Millions of yen)

(Two companies total)

FY2021 2Q

10,304

YoY

Number of registered members(total for each auction)

78.4％

2,743

【Online bidding auctions(KOMEHYO Auction)】(2 companies total)】 Item inspections are physical inspections, while【Transition of auction distribution amount for domestic corporations(Millions of yen)

6,449

K-Brand Off
Group company

6,688

7,681

8,607

Decreased due tocancellation of thesecond half of April

6,786

auctions are held online in a highest-bidder format→Growth in number of members participating in
auctions due to increased convenience

3,518

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

1Q

2Q

3Q

4Q

1Q

2Q

19

Store Type （ Craft・AUTO Parts Japan）【New Tire and Wheel】

10 Stores【Reuse Tire and Wheel】

７ Stores

4x4, SUV specialty store４Stores※
European compact car
specialty store １Store※※Located in a craft store

20

Initiatives（Craft・Four by four Engineering Services）【Establishment of call center at CRAFT Co., Ltd.】 【Launched mesh design wheel "Air / G Rocks"】
・Veteran staff solve customer problems over thephone
Four by four Engineering Services Co.,Ltd.
(Established in May ‘19)
・ Staff in the store have fewer telephone calls to
Business：Planning and development, production anddeal with and can concentrate on providing
sale of automotive goods mainly for 4WDs
services to customers and their other duties
・Provision of after-sales parts that meet the expectations of4WD users
・Extensive product lineup ranging from practical components
to custom parts.

21

Plan for the Fiscal Year Ending March 31, 2021
（ Consolidated ）Return to profitability in 2H through improvement in net sales and gross profit margin
FY2020

FY2021 1H(results)

FY2021 2H(plan)

Change(2H)

Net sales

57,51020,81928,180△1,60049,00085.2%

Gross profit

14,562

5,273

7,726

＋257

13,00089.3%

Gross profit
margin

25.3％

25.3％

27.4％

＋2.3pt26.5％＋1.2ptSG&A expenses

14,265

6,229

7,440

△4913,67095.8％

Operating income

297△956286＋306△670－

Ordinary income

9△1,044244＋527△800－△234△1,379169＋589△1,210－(Millions of yen)

Net income attributableto owners of parent

FY2021(plan)

YoY

22

Shareholder return
Dividend changes
Dividends (Yen)

4035

Dividend payout ratio(%)

100

Fiscal year-end dividendInterim dividend
Payout ratio

9080

3070

25201560(Schedule)

50408103020580
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

10023

Corporate Profile
Company name

Komehyo Holdings Co., Ltd.

EstablishedMay 1979

Head Office

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

Representative※Transition to holding company system in October 2020

President, Representative Director: Takuji Ishihara

Capital1,803 million yen

No. ofemployees

Consolidated: 956

Business
activities

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

Fiscal year-end
Stock

KOMEHYO: 541 (As of September 2020)

March
Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)24Corporate History●Opened Umeda Store,Shinjyuku Store ANNEX,Meieki Store●Acquired Eve Corporation Co.,Ltd.
●Established Auto Parts KOMEHYO KK(currently AUTO PARTS JAPAN)●Established KOMEHYO HONG KONG LIMITED●Acquired CRAFT Co., Ltd.
●Established Product Center●Established KOMEHYO Auction●Opened KOMEHYO Shoten,
a 5-tsubo used clothing store, in Osu, Nagoya

1979

1987

1996

2000

2003

2004

2011

2012

2013

2017

2018

2019

2020

●Opened Ginza Store●Listed on the second section of the Tokyo●Opened KOMEHYOand Nagoya stock exchanges
SHINJUKU WOMEN,Purchasing Center●Opened Purchasing Center6stores
3 Stores●Transition to a
●Acquired Shellman Co.,Ltd.
●Listed on JASDAQ
holding company●Established SAHA KOMEHYO●Opened Yurakucho Storestructure
COMPANY LIMITED(full-scale expansion into Tokyo)●Expanded into Kansai●Opened the second●First Overseas Store Opened(Shinsaibashi Store)
store in Bangkok,in Beijing, China●Started online sales
Thailand(Closed in December 2019)●Expanded into Tokyo●Opened Shinjyuku WATCH store, Purchasing Center 6 Stores(Purchasing Center Dogenzaka)●Changed the Japanese spelling of its name●Acquired Four by four engineering service Co.,Ltdfrom 米兵 to コメ兵●Retail store KOMEHYO opened in Bangkok, Thailand
25●Established KOMEHYO Co., Ltd.
●Acquired K-BRAND OFF Co.,Ltd and two overseas subsidiaries

Business system diagram
General customers, etc.
Purchase by buying
used goods

Sale【KOMEHYO HOLDINGS GROUP】

KOMEHYO

KOMEHYO
Auction

KOMEHYO
HONG
KONG
LIMITEDNJKP

SAHA
KOMEHYOCOMPANY
LIMITED

KOMEHYOSHANGHAILIMITED

Used and new product dealers, etc.
Purchasing and brokering
used and new products

Sale

Manufacturer, etc.
Purchasing newproducts

Komehyo Holdings
Co.,Ltd.

EveCorporation

Shellman(HONG
KONG)Tire and Wheel business

KBRAND
OFF

BRAND OFF
LIMITEDJV

Brand・Fashion business

Craft

AUTOParts
Japan

Four by fourEngineering
Services

BRAND OFF
LIMITED(Taiwan)26

IR contact

Corporate Planning Department
IR strategy group

Phone：+81-52-249-5366
E-mail：ir@komehyo.co.jp
27