Earnings Results
Briefing for the First Six Monthsof the Fiscal Year Ending
March 31, 2022
November 10, 2021
Komehyo Holdings Co., Ltd.
Securities code: 2780
(Second Section, Tokyo and Nagoya Stock Exchanges)
IR・PR Department
TEL +81-52-249-5366
Email ir@komehyo.co.jp

Contents

１．Overview of Financial Results for First Six Monthsof the Fiscal Year Ending March 31, 2022
２．Initiatives for First Six Months of the Fiscal YearEnding March 31, 2022

３．Reference Information (Company Profile, etc.)2

Contents

１．Overview of Financial Results for First Six Monthsof the Fiscal Year Ending March 31, 2022
２．Initiatives for First Six Months of the Fiscal YearEnding March 31, 2022

３．Reference Information (Company Profile, etc.)3

FY 2022 2Q Financial Summary【First six months results】
・Both net sales and profits grew year on year.
・Strong individual purchases due to store openings and purchase events, etc
and opened 14 Purchase centers.
・Corporate sales of the brand fashion business are contributing.
・Test introduction of AI authenticity / model number judgment at 48 storesincluding Purchase centers (October 2021)【Full-year performance plan】
・Full-year performance plan unchanged from August 2021.
・We do not expect sales from foreigners visiting Japan this term.
【Selection / application for new market category】
・Select and apply for "Standard Market" on the Tokyo Stock Exchange.
4Economic Trend
Stock Price（yen）

The impact of COVID-19 remained.
Nikkei Stock Average(monthly closing price)

30,00020,000Department store(fine arts/jewelry/precious metals)(10 millions of yen)
KOMEHYO Net sales(Millions of yen)

5,000
4,000
3,000
2,000
1,000
0

'20.4

5

6

The COVID-The COVID-The COVID-

19

19

19

19

2nd wave

3rd wave

4th wave

5th wave

7

8

9

10

11

12 '21.1

2

3

4

5

The COVID-

6

7

8

9 FY2022(Source：JAPAN DEPARTMENT STORES）

5

Overview of income statement(Millions of yen)

FY2022
1Q

FY20222Q

YoY

FY2022
1H

YoY

YoY

vs 1H plan

Net sales

14,162180.1%

16,472

127.1%

30,635147.1%

102.1%

Gross profit

3,985

211.1%

4,215

124.5%

8,200

155.5%－

Gross profit
margin

28.1％

－

25.6％

－

26.8%

－

－

SG&A expenses

3,476

126.5%

3,613

103.8%

7,089

113.8%－

Operating income

508

－

601

－

1,110

－

108.9%

Operating profit
margin

3.6％

－

3.7％

－

3.6％

－

－

Ordinary income

515

－

610

－

1,125

－

112.6%Net income
attributableto owners of parent

337

－

385

－

722

－

106.3%※ Figures for the first six months under review after the application of the Accounting Standard for Revenue Recognition and figures for the first six
months of the previous fiscal year before its application are compared.

6

Operating income increase and decrease factor
Purchases from individuals remained strong and net sales increased.
Operating income grew significantly thanks to expense control and other efforts.
Personal expenses increased due tonormal business operation.
△416
Increase in general and administrative
expenses such as land rent
△272
Increase in selling expenses such as
advertising expenses△171

Sales amountincrease+2,486Gross Profit
margin increase+440

SG&A Expenses
increase△860

FY2021 1H

△ 956

1,110
Operating income(Millions of yen)

FY2022 1H

Operating income（+2,066）

7

Changes in selling, general and administrative expenses
SG&A ratios declined due to efficiency-oriented advertisements.
SG&A expenses to sales ratio(%)

24.4

29.9

2,629

23.1

2,774

General and administrative expenses +272
Land rent increased due to normal business operation(an extraordinary loss in the previous year due totemporary suspension).）

3,171

Personnel expenses +416
Salaries and benefits, etc. increased due tonormal business operation.
(an extraordinary loss in the previous year due totemporary suspension).）Selling expenses +171
Increase in advertising expenses, etc.

2,502

2,777

2,755

(Millions of yen)

1,368

972

1,143

FY2020 1H

FY2021 1H

FY2022 1H

8

Non-operating income(loss) / Extraordinary income(loss)
Foreign exchange gain 18
Dividend income
13
Commission income
2
Other
8
Grant income
12
Gain on sale of fixed assets 4(Millions of yen)

Non-operating loss 28
Non-operating income 43

Extraordinary loss 15
Extraordinary income 17

Loss due to temporary closure
10
Loss on retirement of fixed assets 4Interest expenses 24
Other
3

9

Balance sheet overview(Millions of yen)

FY2021

FY2022 1H

Change27,28626,984

Cash and deposits

10,538

7,706

Products

12,64915,064

Other current assets

4,097

4,212

+115

Non-current assets

10,116

10,404+288

Total assets

37,40237,388△13

Liabilities

18,955

18,175△780

14,746

14,371

4,209

3,803

△374 of cash on hand.
△405

Net assets

18,446

19,213+766 →Attributable to an increase in retained

Liabilities andNet Assets

37,40237,388△13

Current assets

Interest-bearing liabilities

Other liabilities△302→Normalization of cash on hand as a

△2,832 precaution against COVID-19+2,414 →Increased merchandise for year-end
shopping season through improved
purchase from individuals.

→Borrowings decreased with the normalization

earnings and other factors

10Statement of Cash Flows
Operating cash flow decreased partly due to an increase in inventories in preparation
for a busy season in the second half of the fiscal year.
12,423
Cash and cash equivalents(Millions of yen)

11,894
9,249

7,330
6,086

Cash flows fromoperating activities

6,216

4,964
4,178
1,748

1,447

2,113

△ 564
△ 1,011

FY2019 1H△ 2,239

FY20191,213
273△ 1,332

FY2020 1H

1,651
669

△ 1,268

FY2020

2,109

4,379
1,353

Cash flows frominvesting activities
△ 288
△ 912

△ 1,169△ 1,222△ 1,503

FY2021 1H

FY2021

FY2022 1H

Cash flows fromfinancing activities

11

Overview by segment
In the Brand fashion business, both sales and profit increased thanks to improved purchasesfrom individuals and the strong results of auctions among companies. Sales and profit also
increased in the Tire and wheel business owing to the strong result of customized products.
(Millions of yen)

FY2022
1Q

FY20222Q

YoY

FY2022
1H

YoY

YoY

Brand
FashionTire and
Wheel
Real estateleasing

Net sales

13,277186.0％

15,622128.8％

28,940150.0％

Operatingincome

472

－

569

－

1,042

－

Operatingmargin

3.6%

－

3.6%

－

3.6％

－

Net sales

864

121.5％

790

101.3％

1,654

110.9％

Operatingincome

△20

－

△35

－

△56

－

Operatingmargin

－

－

－

－

－

－

Net sales

84513.1％

84424.0％

168

464.2％

Operatingincome

25

－

25

－

50

－

Operatingmargin

29.8%

－

30.2%

－

30.0％

－

※ Figures for the first six months under review after the application of the Accounting Standard for Revenue Recognition
and figures for the first six months of the previous fiscal year before its application are compared.

12

Gross Merchandise Value
Gross merchandise value (GMV) increased from two fiscal years earlier primarily
due to the consolidation of K-Brand Off.
Gross Merchandise Value (100 millions of yen)
40,77839,071

41,09736,42031,92632,962
27,692FY2019 1H

FY2019 2H

FY2020 1H

FY2020 2H

FY2021 1H

FY2021 2H

FY2022 1H

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

13Breakdown of consolidated Net sales (Retail / Overseas)
The hybrid business of retail and corporate sales, including auctions among companies, isbalanced in the Group as a whole.
The ratio of overseas is expected to increase as the focus shifts to global expansion.

Overseas

11%
Corporate FY2022 1H
Net sales
sales,etc.
30,635
51%(Millions of yen)

Retail49%

FY2022 1H
Net sales
30,635(Millions of yen)Domestic

89%※The ratio of overseas business does not include domestic tax-free sales, etc.

14

Trends in Consolidated Net sales and Gross Profit Margin
Seasonal factors behind the change in the gross profit margin include a tendency toincrease in the third quarter, when the ratio of retail increases for the year-end shopping season,
and a tendency to decrease in the second and fourth quarters for stock-taking.
29.6

27.5

24.0

25.9

24.3

24.0

26.1

Gross profit margin(%)
27.7

28.1

25.6

Net Sales(Millions of yen)

12,43915,288 14,999 14,782

12,957

15,132 14,771

14,161

16,472

7,861
1Q

2Q

3Q

FY20-4Q

1Q

2Q

3Q

FY21-4Q

1Q

FY22-2Q

15

Purchase from individual customers (Group total)
The amount of individual purchases increased chiefly due to the opening of
Komehyo’s purchasing centers, the holding of the KAITORI GO purchasing event,and an increase in the amount of purchases per customer.
Number of stores
93

94

5,599

109
96

116

98

6,754

6,312

3Q

FY2021-4Q

Purchase fromindividual customers(Group total)(Millions of yen)

7,574

7,728

1Q

FY2022-2Q

2,535

1Q

2Q

※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 services (KOMEHYO)

16

Changes in corporate auction trade volume
The number of corporate members and trading volume increased thanks mainly to thestrong results of JBA Auction (particularly the offline auctions held in Kanazawa).
Number of registeredmembers

2,743

6,786

2,591
7,421

2,755

7,151

2,972
7,947

2,966
8,779

Trade volume(Millions of yen)
JBA

3,518
KOMEHYO
auction
1Q

2Q

3Q

FY2021-4Q

1Q

FY2022-2Q※KOMEHYO auction：The online bidding method※K-BRAND OFF：Japan Brand Auction(JBA)TOKYO－the real bidding method
Japan Brand Auction(JBA)KANAZAWA－the live auction method
JBA Live Net Auction－The online bidding method17

EC(KOMEHYO)
The e-commerce contribution ratio increased due to sales growth on Komehyo’s online store
and catalog orders, mostly as a result of an increase in merchandise supplied to retail storesthrough improved purchase from individuals and enhancement of the e-commerce replacement
and contact center.
48.2

E-commerce-induced sales rate：EC Sales as a Percentage of Retail Sales
46.1
43.7
41.6
41.0
39.4

2,006

2,211

2,176

2,021

2,333

E-commerce
induced sales(Millions of yen)
KOMEHYO website

1,253
Back orders

Others

1Q

2Q

3Q

FY2021-4Q

1Q

FY2022-2Q※KOMEHYO’s online store: Make a purchase by directly clicking the KOMEHYO online store or by making a phone callto a contact center and receiving a customer service.
Purchasing from a catalog: Make a purchase after choosing a product from a catalog at the KOMEHYO online store,
having the product delivered to a nearby KOMEHYO store and making sure of the product in person.
Other companies’ websites: Make a purchase at a store KOMEHYO set up at an Internet sales site operated byanother company.

18

Contents

１．Overview of Financial Results for First Six Monthsof the Fiscal Year Ending March 31, 2022
２．Initiatives for First Six Months of the Fiscal YearEnding March 31, 2022

３．Reference Information (Company Profile, etc.)

19

Stores：Group total 116 stores（‘21.9)
Brand Fashion

Flagship stores

５

２

1

Sales Stores
Stores annexed withsales facilities

11

Purchasing
Center41

９Overseas

3

12

Total

60

BRAND OFF
KANAZAWA store

78

Shellman GINZA store

Tire and Wheel

1

6

2

10

4

7

2

10

4

２

25

WORM OSAKA(July ‘21 Opened)

Craft NAKAGAWA store

20

Opened stores in FY2022 1H（KOMEHYO）
KOMEHYO opened 14 purchasing centers in the first half of the fiscal year and is making steadyprogress towards the goal of opening 30 stores in the fiscal year.

West Japan

East Japan

KOMEHYO Purchasing Center
1Q HAKATA HANKYUAEON MALL IBARAKIKAWANISHI HANKYU
2Q DAIMARU SUMA
AEON MALL KOBE KITA

KOMEHYO Purchasing Center
1Q HIBARIGAOKA PARCOSAPPORO TOKYO
2Q

COCOON CITY
MARUHIRO IRUMA

Central
KOMEHYO Purchasing Center
1Q AEON MALL KUWANA
VERSAWALK NISHIOAEON MALL ATSUTA
2Q ISSYATOYOHASHI KALMIA
21

Human resources development（KOMEHYO）
The development of appraisers who support the opening of purchasing centers focuses on
education to enable each appraiser to appraise multiple merchandise types.

Process of appraisers’ skill learning

4th products
3rd products
2nd products
Specialty products

Appraiser's Strengths: Specialty
Manners
An example of teaching materials

22Human resources development（KOMEHYO）
They start with a type of merchandise in which they specialize and learn about other types, andthe ratio of multi-skilled appraisers increased to two thirds of all appraisers.

Appraiser skill composition
In charge of 4 or more products

In charge of 3 products

In charge of 2 products

In charge of 1 product2

FY2018FY2022 1H

0%

20%

40%

60%

80%

100%

23

Assessment of authenticity and model numbers through AI
Test introduction of Assessment of authenticity and model numbers through AI which support the
opening of purchasing centers - aim to introduce it to all stores this term

Formation of reuse market which customers can use
with peace of mind
・Improvement of communication with customers
・Elimination of counterfeit goods
・Quicker development of assessors
・Global expansion
・Franchise development

24

Strengthening OMO that will continue from the previous term
（KOMEHYO）
WEB
customer
service

SNS

Purchase sale
Reserve

Contact
Center

One to One
customer
service

Membershipregistration onlywith a phone
numberCX
Strategy

Increase customer LTV
including sale and purchase

Live
Commerce25

Product distribution image（KOMEHYO)・Stores
・Home delivery Purchasing

Purchasefromindividual
customers
75％

・Purchasing at events・Purchasing at visited sites

Purchase from
corporations
25％

・Suitable forretail

KOMEHYO
Product
centerQuality
Market priceDistribution

Retail ・Stores
50％

・Web
KOMEHYO website
Others website

・Auction・Wholesale
Domestic
Corporate
Overseassales• Not appropriate for retail・Events
50％(bad condition, etc.)
IJT, etc.
• Expensive stock• High market price risk
26

Sustainable efforts（KOMEHYO）
Cooperate with commercial facilities as an effort
to increase merchandise value and promote
the appeal of the merchandise using POP ads, etc.
Raise merchandise value by editing

Remake jewelry

Old Shoes Restore

27

Corporate Auction（KOMEHYO Auction）
Plans for member website renewal

Four points

1. Visualize pricing process through bid-up
system
2. Increase bidding efficiency throughsimultaneous bids using the shopping
cart function（Logo changed in September 2021）

3. Facilitate the discovery of intended items
using narrowed-down search and special
condition search
4. Allow instant purchase setting to reduce
the lead time to conversion to cash28

Oversea business（SAHA KOMEHYO (Thai land)）In Bangkok, Thailand, people are returning to stores as the pandemic subsides.
Komehyo decided on a plan to increase stores from the current two-store structure with
Komehyo at Central World and Komehyo at Central Bangna based on a strong partnership.

29

Tire and Wheel
Urban Off Craft specializing in 4WD vehicles and SUVs maintained strong sales by meeting
demand for custom products such as wheels and supplies.
The stores positioned aluminum wheels in a high-price range as products focused on sales
activities and successfully met customers’ requests for each vehicle, such as the measurementof actual vehicles and color customization of nuts, alignment parts, and wheels.

30

Contents

１．Overview of Financial Results for First Six Monthsof the Fiscal Year Ending March 31, 2022
２．Initiatives for First Six Months of the Fiscal YearEnding March 31, 2022

３．Reference Information (Company Profile, etc.)

31Corporate Profile
Company name

Komehyo Holdings Co., Ltd.

EstablishedMay 1979

Head Office

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

Representative
Capital※Transition to holding company system in October 2020

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

No. ofemployees

Consolidated: 945 Non-consolidated: 16 (As of September 2021)

Business
activities

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

Fiscal year-end
Stock

March
Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)32Mission
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 suchproducts happy, and by doing so, create an empathy-based recycling
society.
We develop a concept of environmentally and sociallyconscious 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.
33

We will pass on the value of products
through environmentally and socially conscious
recycling instead of just reusing.。
Maintenance, remaking, reorganizing andhuman relationships
Environmentally and socially conscious recycling,
while it means reusing products, aims to pass down
the concept of upcycling that enhances the value of
products, instead of just downcycling products.
As more people share common value with an eye
toward the creation of a sustainable society going forward,
we will contribute to establishing such a society
by promoting the concept of respecting producers andusers while simultaneously sharing such concept with as many people as possible.
34Corporate History●Acquired Eve Corporation Co.,Ltd.
●Established Auto Parts KOMEHYO(currently AUTO PARTS JAPAN)●Established KOMEHYO HONG KONG LIMITED●Transition to a holding
company structure●Opened the second
store in Bangkok,
Thailand● Acquired CRAFT Co., Ltd.
●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 KOMEHYO Ginza Store●Acquired Shellman Co.,Ltd.
●Listed on the second section of the Tokyo●Established SAHA
and Nagoya stock exchanges
KOMEHYO COMPANY● Listed on JASDAQ
LIMITED● Established
KOMEHYO Co., Ltd.

●Expanded into Kansai(KOMEHYO Shinsaibashi Store)●Started online sales●Expanded into Tokyo(KOMEHYO Purchasing Center Dogenzaka)● Changed the Japanese spelling of
its name from 米兵 to コメ兵●Acquired Four by four engineering service
Co.,Ltd●Retail store KOMEHYO opened in Bangkok,
Thailand●Acquired K-BRAND OFF Co.,Ltd and two
overseas subsidiaries

35

Business system diagrampurchase

Sales

StoresHome delivery
Purchasing

WEB

Purchasing at
eventsPurchasing at
visited sites

New and used goods business

General customers, etc.

General customers, etc.

StoresUsed goods business

36

Sales plan
70,00057,510(Millions of yen)

50,96040,212

43,19945,90363,20050,72345,497
40,134FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024※ Changes were made to business plans for the first half and the fiscal year announced at the beginning of the fiscal year.
No change in medium-term plan.

37

Operating Profit Plan
7.5

Operating Income
Margin (%)

7.2
6.1

2,999

3.6

3,129
2,789

3.7

2.1
0.5

1,625

FY2016FY2017FY2018Operating Income(Millions of yen)

2,800

2,190

297
FY2015

1.2

1,860

832

FY20144.0

3.5

FY2019FY2020590

FY2021

FY2022

FY2023

FY2024※ Changes were made to business plans for the first half and the fiscal year announced at the beginning of the fiscal year.
No change in medium-term plan.

38

Ordinary income/Net income Plan
Net income
attributableto owners ofparent(Millions of yen)

2,988

3,162

Ordinary
income

2,742

2,110

2,040
1,834

2,700

1,826

1,696

1,800

1,610
1,073
815

1,470
1,009
431

355

9 △ 234△ 595

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024※ Changes were made to business plans for the first half and the fiscal year announced at the beginning of the fiscal year.
No change in medium-term plan.

39

Changes in ROA/ROE
（％）
13.7

ROA

ROE

13.2
11.1

12.9

12.8
9.7

6.1
3.3

5.8

6.3

5.2

1.2
0.0

2.0
△ 1.2

△ 3.2
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY202140

Medium-term Management Plan
Brand・Fashion business
１．Strengthening of the scheme ofpurchasing from individuals and retailing

Tire・Wheel business１．Stabilization and strengtheningof profitability

２．Strengthening of the corporate business
２．Strengthening of new products.
３．Development of overseas businesses
and strengthening of reuse technologies.
BtoC

BtoB

Overseas
Manufacturer

Primary
distribution

Secondary
distribution

41Medium-term Management Plan : Brand・Fashion
１．toC - Strengthening of the scheme of purchasingfrom individuals and retailing・Increase the number of purchasing channels (acceleration of
new store openings and facilitation of FC and alliances).
・Raise the capability of existing stores and improving CRM
through OMO with a focus on LTV.
・Facilitate the upcycling of purchased products.

２．toB - Strengthening of the corporate business・Strengthen and streamline the auction business.
・Accelerate collaboration-based businesses.
・Acquire new business partner companies.

３．Growth drivers - Development of overseas
businesses and strengthening of reuse technologies.
・Drive growth in overseas channels (enhance profit levels).
・Utilize data on products and customers among the groupcompanies.
・Enhance purchasing channels through the utilization of AI.

42

Medium-term Management Plan : Tire・Wheel
１．Collaboration among the three companies – Stabilizationand strengthening of profitability
・Strengthen specialty stores developed according to customer preference
and sales of which are not affected by the weather.
・Strengthen the sale and purchase of used tires and wheels.
・Implement inventory management utilizing databases and establish priority categories.
Profitability

２．Growth drivers - Strengthening of new products.

・Facilitate the planning and manufacturing of automobile
parts such as wheels.
・Step up efforts to supply product to global markets.
・Establish business portfolios with a focus on profitability.

Growth image of 3 companies
Growth potential

43

Shareholder return
Komehyo Holdings aims for a stable dividend increase from now after a decline in dividends until the previous
business year due to the COVID-19 pandemic.
92.4

Payout ratio(%)

36.2
24.8

29.3

23.0

Fiscal year-end dividend

16.6

7

7
5

15
7
7

15.0

34.7
17.9

Interim dividend

Dividends (Yen)

5

15.5

30.6

19.4

8
8

(planned)

14

15

15

15

16

8

10
9

12
8

11

14

15

15

15

16

16
8

12

FY2009FY2010FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022

44

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, andopinions 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 theirown discretion.

45