Earnings Results
Briefing for the First Quarterof the Fiscal Year Ending
March 31, 2024
August 14, 2023
Komehyo Holdings Co., Ltd.
Securities code: 2780
(Tokyo and Nagoya Stock Exchanges)
IR・PR Department
TEL:+81-52-249-5366
Email ir@komehyo.co.jp

From reuse to relay use
We will inherit that "value".
Maintenance, remake, editing, connection with people.
"Relay youth" is not just a downcycle of the value of things,
but an upcycle of increasing the value, even though it isreused.
As values for a sustainable future society spread, we willcontribute to the formation of a sustainable society by
respecting producers and users and relaying their "feelings".

2

Komehyo Holdings is necessary for a sustainable recycling society.
It acts as a relay point in the connection of “people,” “things,” and “society.”
We will strive to connect “good quality" and "value" to the future.

We respect people for making products, thank people for providing 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 develop a concept of environmentally and socially conscious recycling into a culture

We listen and empathize with what others say.
We value the importance of talking.
We take action proactively.
We are not afraid of creating change.

3Competitive Advantages of the KOMEHYO Holdings Group
Since its founding, the Group has consistently worked on reuse.
Developing Business with Three Competitive Advantages.

Talent retention
rate ofIn order to acquire a wealth of productknowledge and the ability to determine
authenticity, it is necessary to learn manythings while accumulating experience.
Komehyo Holdings has a staff retention
rate of over 90% for two consecutive years.
Since we provide many opportunities todevelop human resources and play an activerole,
we have a foundation for cultivating highly
specialized human resources without
wasting our investment

More than 1.7 million brands andfashion-related items handled by KOMEHYO
are available annually.
The entire group, including B2B auctions,distributes a large number of products.
By accumulating product data and customer
data, we are able to offer many attractive
products that meet customer expectations.

In addition to trust and security as theNo. 1 brand reuse company, we have thepower of a long-established brand that is
supported by a high degree ofrecognition.
As a market pioneer, we will contribute to
the realization of a sustainable society
through our business by accurately
grasping customer needs and providing
services that please many people.

*Source: Reuse Market Data Book 2022

4

Contents
１．1st Quarter of Fiscal Year ending March 31, 2024
Revised 2nd Quarter and Full-Year Earnings Forecasts
and Dividends Forecasts
P.6
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2024
P.24
３.

Reference Information

P.34

・Corporate Profile5

１．1st Quarter of Fiscal Year ending March 31, 2024
Revised 2nd Quarter and Full-Year Earnings Forecasts
and Dividends Forecasts
P.6
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2024
P.24
３.

Reference Information

P.34

・Corporate Profile6

FY 2024 1Q Financial Summary
Brand・Fashion busines

Tire and Wheel buisinessNet sales

Operating income

Purchase from individual customers

Net sales

Operating income

24,075

1,683

13,5191,009

2Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen（YoY 135.3％）（YoY 230.5％）（YoY 122.3％）（YoY 106.5％）（YoY 79.9％）

P.19
P.23,27

P.26,30

P.32

Increase in revenue and profit
Purchases from individuals were strong chiefly due tostrong purchases at existing stores, new store openings,
and purchase events.
33 purchase centers, including 14 franchised centers, and threeoverseas stores opened and one flagship BRAND OFF store
was relocated.
Accompanying strong individual purchases, corporate sales also
performed well.

P.19,33
・Net sales reached a record high in the first quarter.
・Sales of used products improved, and online sales of summer andwinter tires were strong, maintaining operating profit.
・Due to a temporary slowdown in the production of information on
products sold on the e-commerce site, the share of new products as apercentage of online net sales increased, and gross profit margin
declined.
・The number of high-grade BRADLEY FORGED TAKUMI tires sold,mainly for export overseas, jumped significantly by 505% year over year.

7Earnings forecast revision Main factors
As prices continue to rise and the yen depreciates, demand for second-hand goods and popular brand items is high, including among
foreign visitors to Japan, and sales of high-priced items are strong.
Initial Plan

1Q

After 2Q

Purchase

・Purchase (individual purchase +corporate purchase)：YoY 118%
・The market price for each product isflat or gently rising

・Strong market prices for each product
Purchase from individual customers：YoY122％
・For items that are popular both in Japan and overseas, we will adjust thepurchase price and focus on purchases that are well-balanced, such as
securing inventory.
・Existing stores are performing well due to purchase campaigns andpromotions

Maintain the current level on the assumption that there will be
no major fluctuations in the market.

Net sales

・Duty-free sales increased 1.3 times from the previous 4Q.
・Respond to immediate inbound demand by enriching sales stores with
Duty free sales were at the same level as
attractive products, including active corporate purchases.
the fourth quarter of last year.
・Corporate sales also increased more than expected due to strong
individual purchases

Gross profit margin

Changes in selling,
general andadministrative
expenses

・In the second half, although year-on-year sales are expected
to slow down, retail sales are expected to remain strong.
・Inventory disposal in September is expected to be minimal
due to high inventory freshness.

Improve gross profit margin byincreasing the ratio of retail sales to
sales

・The ratio of retail sales to sales increased more than expected due toaggressive purchases, etc.
・In addition to the increase in the number of members, the overall sales ofreuse are strong, so the volume of the company's corporate auctions istrending favorably.

・The 2Q trended at the same level as the current situation, as
usual. Expected to be higher in 3Q.

We will make active investments to drive
continuous growth in Japan andoverseas.

Controlled almost as planned, including variable costs

・Continuing investments that lead to growth based on initialplans.

8

Revision of results forecasts for the first half and the fiscal year
ending March 31, 2024
Inventory secured in the first quarter is expected to contribute to net sales and operating income in the second quarter and beyond.

1H
FY2024FY2024

Net income
to owners of parent

Basic earnings
per share

2,250

1,600

146.03

3,200

3,250

2,200

200.80

3,000

950

1,000

600

－

Rate of change

6.3%

42.2%

44.4%

37.5%

－

Forecasts released
previously

100,000

5,800

5,800

4,000

223.61

Revised forecasts
announced on thisoccasion

106,000

7,200

7,230

4,820

439.93

Change

6,000

1,400

1,430

820

－

Rate of change

6.0％

24.1％

24.7％

20.5％

－

(Millions of yen)

Net sales

OperatingincomeForecasts released
previously

48,0002,250

Revised forecasts
announced on thisoccasion

51,000ChangeOrdinary
incomeattributable9Medium-term management target(Until FY2026)
Plans for fiscal year ending March 31, 2025 onwards will be announced again in May 2024.

FY2024(millions of yen)first half

full year

FY2025

FY2026full year

full year

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 income

3,250

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%

10

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）（planned）

FY2022

FY2023

FY2024

Interim dividend

11Changes in average purchaser unit price by productThe unit purchase price per individual customer is on the rise, reflecting stronger sales of bags against the backdrop of inbound demand,clothing with a stronger strategic focus on items with a high unit price, and rebounding market prices for watches.

bag
（YoY）

150%

fashionwatch
All products

100%

Jewelry

2022
July August

September

OctoberNovember

December

2023
January February March

April

May

June

12

FY 2024 1Q Performance
Both net sales and each profit reached record highs(Millions of yen)

FY2022 1Q FY2023 1Q

FY2024 1Q

ChangePlan progress
rate*

YoY

Net sales

14,162

18,75325,096

6,342 133.8%

23.7%

Gross profit

3,985

4,717

6,592

1,874 139.7%－

Gross profit margin

28.1%

25.2%

26.3%

Gross profit margin

3,476

3,978

Operating income

508

Operating profit
margin＋1.1pt

－

－

4,867

889 122.4%

－

739

1,724

985 233.2%

24.0%

3.6%

3.9%

6.9%

Ordinary income

515

760

Net income attributableto owners of parent

337

519

＋3.0%

－

－

1,762

1,002 231.9%

24.4%

1,183

664 227.9%

24.6%* Progress rate of the full-year plan for the fiscal year ending March 31, 2024 stated in "Notice of Revisions to Results and Dividend Forecasts" published on August 14, 2023.

13

Operating income increase and decrease factor
Net sales increased, reflecting enhanced purchasing of popular products from corporations in addition to strong purchases from individual customers.
The retail as a percentage of total net sales has increased, improving gross profit margin. Operating income increased significantly, in part due to control of expenses.

(Millions of yen)

Increase in personnel expenses
such as salaries and allowances -399
Increase in G&A expenses suchas rent-260
Increase in selling expenses
such as advertising expenses-229

FY2023 1Q

Sales amountincrease

Gross Profit
marginincrease

SG&A
Expenses
increase

FY2024 1Q

14Changes in selling, general and administrative expenses
Hiring and training was strengthened to secure the staff needed to open stores, resulting in higher personnel expenses.
However, SG&A expenses as a percentage of net sales fell thanks to growth in net sales.

SG&A expenses to sales ratio(%)

4,867(Millions of yen)－Selling expenses

3,978
3,476

－G&A expenses－Personnel expenses

FY2022 1Q

FY2023 1Q

FY2024 1Q

15

Non-operating income(loss) / Extraordinary income(loss)(Millions of yen)

Non-operating
expenses16
Interest expenses13
Rent expenses
on store2
Other1Non-operating income54
Foreign exchange gain 31
Dividend income11
Insurance claim income 2
Other 9Extraordinary losses8
Impairment losses7
Other 0Extraordinary
income 0
Gain on saleof non-current
assets016Balance sheet overview(Millions of yen)

FY2023

FY2024 1Q

Change35,32239,741

4,418

Cash and deposits

10,382

9,380-1,001→Emphasis on efficiency of cash on hand

Inventories

18,70522,921

4,216

Other current
assets→Inventories increased due to strong
Individual purchases

6,234

7,439

1,204

Non-current assets

11,43011,723292

Assets

46,75351,464

4,711

Liabilities

22,50626,3373,830Interest-bearing
liabilities

16,49820,405

3,906

Other liabilities

6,007

5,931

-75

Net assets

24,24725,127880

Liabilities andnet Assets

46,75351,464

4,711

Current assets→Interest-bearing debt increased due to anincrease in inventories→Net assets increased due to an increase inretained earnings, etc.
17

Inventory Turnover（Brand・Fashion business）
Inventory was properly supplied and prices were adequately controlled by utilizing multiple sales channels while taking into account market prices and foreignexchange rates.This led to an improvement in the ratio of gross profit to inventory investment (gross profit margin multiplied by inventory turnover ratio),allowing the company to maintain a high level of fresh inventory.

Inventory turnover
period（DAY）

Inventories(Millions of yen )FY2022

FY2023

FY20241Q
Gross profit margin①

27.7%

24.6%

26.0%

1Q
inventory turnover②

3.0

3.4

3.5

82.72%

84.2%

91.1%

59

42

－

1Q
①✕②
FY
Inventory write-down(Millions of yen )FY2022 1Q

FY2023 1Q

FY2024 1Q

18

Overview by segment
In the Brand Fashion business, purchases from individuals and retail were strong.
In the Tire and Wheel business, only sales of new products performed solidly.

FY2022 1Q

FY2023 1Q

FY2024 1Q

ChangeYoY

13,277

17,79424,075

6,281

135.3%

Operating income

472

730

1,683

952

230.5%

Operating margin

3.6%

4.1%

7.0%

+2.9pt－Net salesc

864

947

1,009

61

106.5%

Operating income

△20

2

2

-0

79.9%

Operating margin

－

0.3%

0.2%

-0.1pt－Net salesc

84

71

71

0

100.1%

Operating income

25

21

21

0

100.0%

Operating margin

29.8%

30.3%

30.3%

+0.0pt－(Millions of yen)
Net salesc
Brand
Fashion

Tire
and
Wheel

Real
estateleasing19

Breakdown of consolidated Net sales(Retail / Overseas/Domestic tax-free sales)【Retail】The retail ratio increased due to the strengthening of the retail business, achieving the ideal composition ratio（Retail: Corporate sales = 50:50）【Overseas】Overseas sales were also healthy following the transfer to Hong Kong and Taiwan, and new store openings.
【Domestic tax-free sales】Compared with results from the fourth quarter (three-month period) of the previous year,
the percentage of duty-free sales increased by 3 percentage points.

Retail ratio

Corporate
sales,etc*

FY2024 1Q
Net sales
25,096

Overseas ratio

Retail（Millions of yen）

Overseas*Tax-free sale*

10.0%

12.3%

FY2024 1Q
Net sales
25,096

Domestic sales（Millions of yen）

（Millions of yen）

Domestic
90.0%* "Corporate sales" includes auction fees.

Domestic tax-free sale
ratio

* The ratio of overseas business does not include
domestic tax-free sales, etc.

FY2024 1Q
22,587

Taxation
87.7%* Calculated before eliminating internal transactions.

20

Breakdown of domestic duty-free sales【 Composition ratio by country/region 】Chinese and Taiwanese customers account for roughly half of sales and make up 75% of sales from the top five countries.
【Percentage of purchasers by age group】They are younger than the domestic customer base, with the volume zone being customers in their 30s to 40s.

Composition ratio by country/region

Others24.5％

Percentage of purchasers by age group

China
35.0％

Domestic
duty-free sales(FY2024 1Q)

Thailand
6.2％
America

7.8％
Philippines
12.6％

Taiwan13.8％
unknown*Aggregated by issuing country/region from passports21

Quarterly Trends in Consolidated Net Sales and Gross Profit Margin【 Net sales 】Both retail and corporate sales increased due to strong individual purchases.
【 Gross Profit Margin 】Due to the percentage of retail increasing, gross profit margin increased by 1.1 percentage points year over year.

Gross Profit
Margin(%)

Consolidated
Net Sales(Millions of yen)

FY2022 1Q

FY2023 1Q

FY2024 1Q

・Tend to rise as the composition ratio of retail sales increases

Factors behind fluctuations in gross profit

・The ratio of corporate sales is on the rise as inventory is revised in September and March.
・he figure may vary depending on the weightings of items that can be purchased.

22

Purchase from individual customers (Group total)
The number of customers has increased due to the opening of purchasing centers under the KOMEHYO and BRAND OFF (franchise) brands, and the amounts
purchased per customer at existing stores has remained strong, resulting in record highs of purchase amounts in the fiscal period.

Purchase from individual customers(Group total) (Millions of yen)

FY2022 1Q

FY2023 1Q

FY2024 1Q* 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)

23

１．1st Quarter of Fiscal Year ending March 31, 2024
Revised 2nd Quarter and Full-Year Earnings Forecasts
and Dividends Forecasts
P.6
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2024
P.24
３.

Reference Information

P.34

・Corporate Profile

24

Stores：Group total 188 stores（As of June 2023）*Figures in parentheses (Brand Fashion

5

Flagship stores

3
1

Sales stores
Stores annexed withsales facilities

18 ( 1 )Purchasing Center

92 ( 6 )1) are change during the first quarters

Tire and Wheel

1
6

3

2

2

10

2 ( -1 )2

10

2

6 ( -1 )Franchised
purchasing centers

18 ( 2 )Overseas

6

Total

121

BRAND OFF
KANAZAWA Store122

Shellman
GINZA Store

41

7

WORM OSAKA

3

Craft
NAKAGAWA StoreSELBY
OKACHIMACHI Store25

Efforts of each brand▶ Continuing to open stores specializing in purchases(3rd year of opening 100 stores in 3 years)
In the first quarter, six purchasing centers were opened.

KOMEHYO SHIBUYA
location：
16-9 Udagawacho, Shibuya-ku, Tokyo
Shibuya ZERO GATE 1st-4th floors
open：Mid-November 2023

▶ Stores annexed with sales facilitie
KOMHYO SHIBUYA is scheduled to open in mid-November 2023.
Against a backdrop of strong purchasing, we will try to strengthen retail by enhancing
fashion offerings with a focus on brands generating high levels of interest among
Generation Z to Generation Y in Japan and overseas.

▶ Growth of overseas stores
In December 2022, KOMEHYO SINGAPORE PTE. LTD. was established.
The company began purchasing from May 2023.
Purchasing activity has been going strong, particularly handbags.

Contract area: about 733㎡
Main items handled:jewelry, precious metals, watches, bags, writing
instruments, clothing, etc.

KOMEHYO SINGAPORE PTE.LTD.
location：
Orchard Road,SINGAPORE
Date of establishment: December 2022
Description of business:
Purchase and sale of jewelry, precious metals,
watches, and bags

26

Opening the purchase center
The amount of purchase per store remained strong. The store openings added 3.9 billion yen.(1.5 billion yen during the fiscal year) to the annual purchase amount.
Signboard effect from new store openings had a positive impact on existing stores.

Trends and plans for individual purchases(Billions of yen)
－Stores scheduled to open in FY2024－Stores opened in FY2023－Stores opened in FY2022－Exsting stores

FY2021

FY2022

FY2023

FY2024 1Q

FY2024
Planned27

Product distribution
Purchasing
Purchase fromindividual customers
Stores/Home delivery Purchasing/Purchasing at
Purchasing at visited sites

YoY
▲8pt

69％

quality/market/distribution
YoY
＋2pt

KOMEHYO
Merchandise center

40％

sale

RetailStore
WEB（company,Other company,live commerce）

events/Suitable for retail

40％ 26％ 28％

6％

YoY （▲5pt） （▲1pt） （＋5pt）（＋2pt）

Purchase from
corporations

31％

Purchaseamount ratio

Supplementing individual purchases mainly for the
purpose of maintaining the attractiveness of stores

YoY
+8pt

Products purchased
nationwide are sent here,
and skilled appraisers
assess their authenticity
and maintain them as
needed.
The center manages
individual items, paying
attention to turnover andinventory risk,
and links online store
inventory and physicalstore inventory to provide
products to the mostappropriate buyers.

・For corporations(antiques, unsuitable for retail, etc.)
・Large inventory・High market risk
・Activation of auctions

60％
YoY
▲2pt

Corporate sales
Auction（company,Other company）
Event
wholesale（domestic・overseas）
Live commerce28E-commerce-induced sales rate
E-commerce involvement in net sales reached a record high during the fiscal period due to strong performance of websites from other companies (cross-border
e-commerce) driven by the weakening yen.Due to an increase in sales from foreigners visiting Japan at retail stores, e-commerce involvement in net sales declined.
E-commerce-induced sales rate：EC Sales as a Percentage of Retail Sales

2,814
2,333
2,021

2,803
2,512
2,197

2,586 2,619

2,640

EC-induced sales（millions of yen）

－KOMEHYO website－Back orders－Others
FY2022 1Q

FY2023 1Q

FY2024 1Q*KOMEHYO website: Make a purchase by directly clicking the KOMEHYO online store or by making a phone call to a contact center and receiving a customer service.
Back orders(Purchasing from a catalog): Make a purchase after choosing a product from a catalog at the KOMEHYO online store, having the product delivered toa nearby KOMEHYO store and making sure of the product in person.
Others(Other companies’ websites): Make a purchase at a store KOMEHYO set up at an Internet sales site operated by another company.

29

Efforts of each brand▶Strengthening retail▶Growth of overseas business

The BRAND OFF Ginza main store, which moved in October 2022, is performing well.

・In May 2023, BRAND OFF The One reopened after relocating.
・In June 2023, BRANDOFF Taichung Kuang San SOGO Store opened.

Net sales YoY 309%
Purchase amount YoY 175%

Results have been positive, with purchases being made from diverse demographics.

BRAND OFF TheOne

BRAND OFF Taichung Kuang San SOGO Store30

Efforts of each brand▶Continue opening franchise stores

Planning to open 40 stores in FY03/24.

Items purchased at franchise purchase centers are put to auction (JBA). The trade volume thus increases.

Product commercialization

Generalcustomers
General customers

FC
Exhibit
General customers

General customers・
Corporation

An attractive platform on which an abundance of
items are placed for auction

Corporation

In 1Q, opened 2 stores specializing in purchasing FC (target: 5%)
・BRAND OFF Ginza main store, JBA, and Hong Kong/Taiwan stores are performing well, prioritizing resources
・Focusing on continuous growth after store opening, it takes time to discuss with FC owners. Zero closures due to unprofitability of opened franchise stores.
・Strengthening the support system for FC owners to increase the purchase amount per FC that has already opened.
・Strengthen sales to major companies that are expected to open multiple stores. The pace of store openings is expected to be biased toward the second half.

31Corporate auction volume
JBA auctions, particularly offline auctions in Kanazawa, displayed strength due mainly to an increase in the number of registered members.
The total trading volume of corporate auctions increased 16% year on year, hitting a record high.

Number of registered menmbers

Trade volume(Millions of yen)

FY2022 1Q

FY2023 1Q

FY2024 1Q

32

Tire and Wheel
Maintained an operating profit thanks to stronger used product sales and strong online sales of summer and winter tires.

The number of used goods purchased throughstandalone purchasing and trade-ins was strong,up 22% year on year.
.

・Numbers of summer tires sold increased 46% year on
year, mainly through online sales.
・Due to a temporary slowdown in the production of
information on products sold on the e-commerce site,
the share of new products as a percentage of online
net sales increased, and gross profit margin declined.

Strengthened sales to SNS and overseas distributors, andincreased the number of new dealers. BRADLEY FORGED
TAKUMI, a high-end wheel, mainly for overseas exports,
increased significantly by 505% year-on-year33

１．1st Quarter of Fiscal Year ending March 31, 2024
Revised 2nd Quarter and Full-Year Earnings Forecasts, Revised Dividends
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2024
３.

Reference Information
・Corporate Profile

34

Corporate Profile
Company name

Komehyo Holdings Co., Ltd.

EstablishedMay 1979※Transition to holding company system in October 2020

Head Office

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

Representative

President, Representative Director: Takuji Ishihara

Capital1,803 million yen

No. of employees

Consolidated: 1,157

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

March

Stock

Non-consolidated: 16 (As of June 2023)

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

35

Corporate History

36

Sales shares by segment and by sales channel (FY2023)
By segment

Brand/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 Retail37

Overseas expansion
Opened stores in 4 overseas bases. We purchase and sell locally, and expand the scale while establishing a culture of reuse.
We will continue to actively invest in anticipation of market expansion.
ShanghaiHong Kong

ThailandTaiwanSingapore

Brand

Purchase(toC)
Purchase(toB)

Purchase(toC)
Sale(toC)

Purchase(toC)
Sale(toC)

Purchase(toC)
Purchase(toB)
Sale(toC)

Purchase(toC)

2stores

1base

8stores4stores4stores

1base

Due to restrictions on going out,some stores were closed.
Concentrate management
resources and open
sales/purchase flagship store in
December 2022.

From October 2022, we will
start purchasing fromindividuals. Favorable
performance. Some of thepurchased products are
consigned to the BRAND
OFF Hong Kong store forover-the-counter sales.

Two stores will open in thefiscal year ending March 31,
2023. Purchases are brisk,
especially among thewealthy class.Aiming for a
5-store system by the fiscal
year ending March 31, 2025

90% of purchases are fromindividuals, achieving ahighly profitable structure.
Live commerce utilizing
social media has been
another area of focus, withcorresponding sales
increasing 44.3% year on
year.

Established in December
2022. In May 2023, we will
open a base for individual
purchases. Corporate sales
will start in June.

Services todeployPurchase(toC)
Sale(（toC)

Number ofbases

TopicsIn May 2023, BRAND OFF
The One reopened after
relocating.

In June 2023, BRANDOFF
Taichung Kuang San SOGOStore opened.

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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%

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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.

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