Earnings Results
Briefing for the Third Quarterof the Fiscal Year Ending
March 31, 2024
（Reference information）
February 13, 2023
Komehyo Holdings Co., Ltd.
Securities code: 2780
(Tokyo Stock Exchange and Nagoya Stock Exchange)

Contents
1. Corporate Profile

P. 3

2. Medium-term managementtarget(As of May 2023)

P.112

1. Corporate Profile

P. 3

2. Medium-term managementtarget(As of May 2023)

P.113

Corporate Profile
Company name

Komehyo Holdings Co., Ltd.

EstablishedMay 1979

Head Office

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

Representative

President, Representative Director: Takuji Ishihara

Capital※Transition to holding company system in October 2020

1,803 million yen

No. of employees

Consolidated: 1,365

Business activities

Management planning, business operation support, administration and others
for the corporate group engaging in the Brand-Fashion Business and the Tire-Wheel Business

Fiscal year-end

MarchStock

Non-consolidated: 27 (As of December 2023)

Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)4

Corporate History●KOMEHYO GINZA opened●KOMEHYO SHIBUYA opened2023

5

Sales shares by segment and by sales channel (FY2023)
By segmentBrand/fashion business

Tire and Wheel

Real estate leasing

5.6%

0.3%

By sales channel

Others11.4%
RetailFY2023
Consolidated sales

86,133(millions of yen)

15.9%

81,234(millions of yen)

40.9%

59,021
Corporate (millions of yen)
Sales

59.1%

Brand and fashion business

94.1%

FY2023
KOMEHYONet sales

FY2023
Brand and fashion businessamount of sales

72.7%
EC-induced sales
40.9％ of Retail6

Image of profit margin by product

＞

＞

＞

*Changes depending on the composition ratio of gold bullion‣Fashion has high profit margins because trends are emphasized and retention periods tend to be long due to seasonality.
‣Jewelry, watches, bags, clothing, and other popular brands are subject to price competition and tend to result in thin profits.
‣All gold and bullion are sold to corporations as raw materials. Low profit as the transaction price is clear

7

Customer characteristics(Komehyo Co., Ltd., fiscal year ending March 2023)[Customer demographic] Varies depending on the product, but many are over 40s, and promoting usage among younger people is an issue[Service usage status] Only about 10% of people use purchasing and selling services at the same time. Promote mutual use through store
openings and OMO strategies[Customer attributes by product]
Jewelry

50s・women[Changes in member composition ratio]
EC purchase only

Use allStore purchase + EC purchase

Watch

50s・menBag

40s・women

Fashion

30s・men and women

Purchase + EC purchase

Purchase only (34.7%→36.7%)

Purchase + store purchaseStore purchases only (45.6%→43.4%)

2014-2022 → 2014-2023(Members who joined after November 2010)8

KOMEHYO shifts to full-scale provision of inspection servicesfor Rakuten Rakuma.
Since September 2023 KOMEHYO had been providing the Rakuma Authentication Service on a trial basis for the Rakuten Rakuma flea market app,utilizing KOMEHYO Authentication technologies utilizing expert judgment and AI for brand goods.
On Monday, January 29, 2024, full-scale provision of the service was launched. We aim to provide constant support for safe and secure transactions for even moreusers, helping to form a sound brand re-use market not only in the B-to-C but also in the C-to-C market.

Rakuma Authentication Service Usage FlowThe Rakuma Authentication Service is a service that allows users who have purchased aneligible products on Rakuten Rakuma to have them inspected by KOMEHYO*2 free of charge(purchasers are only responsible for paying one-way shipping to the appraisal location).
Eligible items include brand bags, clothing, watches and brand jewelry.

Reaction from users during the trial period
・Customer conversion rates and average unit prices
for eligible products increased in A/B testing.
・Positive reaction from users ("my worries weredispelled," "the authentication speed was fast," etc.).
・Recognition of the service encouraged transactions. *3

It was found that the Rakuma Appraisal Service wasin high demand as a service that encourages sellers tochange their behavior toward buyers and provides
purchasers with a sense of reassurance as if they
were taking out insurance in case of emergency.
*1 A brand good inspection service provided by KOMEHYO with a track record of more than 300,000 appraisals annually (applicable period: April 2022 to March 2023). In providing the service to an external party, KOMEHYO has registered with Japan's Association Against Counterfeit
Product Distribution (AACD), which conducts activities to eliminate counterfeit and fraudulent brand-name products.
*2 KOMEHYO's practice of determining the goods it deals with as "standard" and goods it will not deal with as "non-standard" based on past data and other information is referred to as "Inspection."*3 Internet survey conducted between May 1, 2023 and October 31, 2023 among users who viewed goods eligible for use of the service on Rakuten Rakuma, and who did not make a purchase (sample number of 1,619 people).

9

Technology indispensable to store operation：AIThe system has been introduced to all the KOMEHYO purchase centers, all of K-Brand Off's franchised purchase centers. It will be introduced
to purchase events and to the global business. It is a technology indispensable to removal of counterfeit goods from circulation and to growthof the KOMEHYO Holdings Group.

Assessing authenticity and model
numbers of bags, wallets, purses andsmall articles from famous brands.
Supporting Hermes, Louis Vuitton,
Chanel, Gucci and Prada

KOMEHYO
purchase
centers
Improvement ofcommunication withcustomers（ Enhanced CX ）Future development
plantrainingassessors

BRAND OFFFranchised
purchasing
centers

Inspection
business

Curtailment of time fortraining assessors(Shorter lead time forlaunch)

Support for owners(Superiority in acquisition ofnew franchisees)High precision inspection(Market growth relatedbusiness)

Purchase events

Improvement of communication with customers

GLOBAL

Prevention of the know-how drain
To be introduced to overseas stores as well10

1. Corporate Profile

P. 3

2. Medium-term managementtarget(As of May 2023)

P.1111

Medium-term management target (Fiscal year ending March 2024 to March 2026)
Operating income, ordinary income, and net income attributable to owners of parent company are expected to achieve their targets for the fiscal year
ending March 2025 one year ahead of schedule.Plans for the fiscal year ending March 2025 and beyond are scheduled to be announced again in May 2024.

FY2024(millions of yen)first half

full year

FY2025

FY2026full year

full year

Scheduled to beannounced again
in May 2024

Net sales

51,000106,000

120,000

140,000

Operating income

3,200

7,200

7,000

8,100

Operating margin

6.3%

6.8%

5.8%

5.8%

Ordinary income3,250

7,230

7,000

8,100

Net income attributableto owners of parent

2,200

4,820

4,800

5,600

ROE

ー

15% or more

15% or more

15% or more

Capitaladequacyー

50% or more

50% or more

50% or more

EPS（yen）

ー

440

438

511

payout ratioー

Aim for 20%

Aim for 20%

Aim for 20%
12

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

payout ratio(%)( yen)

Fiscal year-end dividend（planned）

Interim dividend

13

Capital allocation policy
Growth phase in which securing market share is a priority as the reuse market expands.
Generated profits will be used for growth investments (stock inventory, store openings, overseas expansion, etc.)

Growthinvestment

・Investment in inventory essential for securing sales
・Investment in human resources that support the Group(recruitment, training, reskilling)・Capital investment in store openings, etc.
that will become new customer contact points
・Investment in technologies such as IT and AI that promote DX・Investment to expand market share in overseas markets
・Challenge to new business

Shareholder
return・ Aiming for a stable increase in dividends,
with a target payout ratio of around 20%

14

IR contact
IR・PR Department
Phone：+81-52-249-5366
E-mail：ir@komehyo.co.jp
Note:This document is an English translation of a document prepared in Japanese.
Statements in this document that are not historical facts; statements concerning current plans, forecasts, strategies, and opinions of KOMEHYO
Co., Ltd. are forward-looking statements subject to various risks and uncertainties.
These statements are prepared based on assumptions of the management of Komehyo Holdings Co.,Ltd. using currently available information.
Actual results may differ significantly from forecasts due to a variety of factors; therefore, investors should not place undue reliance upon them.
In addition, this document is not intended to solicit investments. Investors should make investment decisions at their own discretion.

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

15