Earnings Results Briefing
for the Fiscal Year
Ended March 31, 2023
May 2023
Komehyo Holdings Co., Ltd.
Securities code: 2780
(Tokyo and Nagoya Stock Exchanges)
IR・PR Department
TEL:+81-52-249-5366

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.

MISSION
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.

VISIONWe develop a concept of environmentally and socially conscious
recycling into a culture

VALUE
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 of90％

or moreIn 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 rateof 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

1.7million
items handled
annuallyMore than 1.7 million brands and fashionrelated items handled by KOMEHYO areavailable 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.

Brand reuse

No.1*
In addition to trust and security as the No. 1
brand reuse company, we have the power ofa long-established brand that is supported
by a high degree of recognition.
As a market pioneer, we will contribute to
the realization of a sustainable society
through our business by accurately graspingcustomer needs and providing services thatplease many people.
*Source: Reuse Market Data Book 2022

4

Contents
１．Overview of Financial Results and Initiatives
for the Fiscal Year Ended March 31, 2023

p.6

２．Medium-term Management Plan

p.33

5

１．Overview of Financial Results and Initiatives
for the Fiscal Year Ended March 31, 2023

２．Medium-term Management Plan

6

FY 2023 Financial Summary
Tire and Wheel business

Brand・Fashion business
Purchase from individual customers

Net sales

Operating income

81,2344,856

43,486

Millions of yen

Millions of yen

Millions of yen（YoY 121.8％）（YoY 149.2％）（YoY 127.8％）

Net sales

Operating income

4,833

245

Millions of yen

Millions of yen（YoY 166.7％）（YoY 110.3％）
P.32

P.18
P.20

P.24

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

・Increase in revenue and profit
・The Tire and Wheel business contributed to the growth of sales due tostrong sales driven by the rush demand before manufacturers’priceincreases.
・Reinforced online sales and the streamlined production of information
on products sold on the e-commerce site resulted in a 120% increasein sales of used products, which led to an increase in gross profit.
・Overseas sales channels were developed and brand image waspromoted.

7

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

By sales channel

Brand/fashion business

Real estate leasing

Tire and Wheel

0.3%

5.6%

Consolidated sales
86,133 million yen

Other
11.4%
K-BRAND OFF
15.9%

Retail
小売
Komehyo Sales 40.9％
59,021 million yen 43.3%

Brand and fashion businessamount of sales(FY2023)

81,234 million yen(FY2023)

Brand Fashion

KOMEHYO
72.7%

Corporate(FY2023)

sales

94.1%

59.1%
EC related sales
40.9% of retail8Changes in average purchaser unit price by product （KOMEHYO）
Due to purchase price control in line with market fluctuations, watch sales per customer were low compared to the samemonth of the previous year.
However, thanks to strong sales of jewelry and precious metals in 1Q and bags and clothing in 2Q and beyond, the unit
purchase price per customer for all products was at the same level as in the previous year.
（YoY）
150％

fashion
衣料品

100％

bag
バッグ
watch
時計
All products
全商材
jewelry宝石

0％2022.4

5

6

7

8

9

10

11

12

2023.12

3

9

FY 2023 Performance
Strong purchases from individuals secured sales resources,
leading to growth in both retail and corporate sales.
(Millions of yen)

FY2021

FY2022

FY2023

ChangeYoY

Net sales

50,723

71,148

86,113

14,965121.0％

Gross profit

13,836

18,41522,5424,126

122.4％

Gross profit
margin

27.3％

25.9％

26.2％

＋0.3ptー

SG&A expenses

13,245

14,70017,373

2,672

118.2％

Operatingincome

590

3,714

5,168

1,454

139.1％

Ordinary income

431

3,772

5,406

1,634

143.3％Net income
attributableto owners of parent

△595

2,259

3,706

1,447

164.1%

10

Details of expenses
SG＆A expenses are on an upward trend due to upfront investment in opening KOMEHYO GINZA storesspecializing in purchases, strengthening hiring through store expansion, and advertising expenses centered on
promoting purchases.
SG&A expenses to sales ratio declined due to efficiency-oriented advertising, etc.
26.1

SG&A expenses to sales ratio(%)

20.7

20.2
17,373(Millions of yen)

14,70013,2456,274（7.3％）

Increase in general and administrative
expenses such as land rent
＋664

5,610
5,374

（7.9％）（10.6％）

7,443
5,641
（11.2％）

2,229

6,383

（8.2％）

Personal expenses increased ＋1,059
Sales ratio（9.0％）

2,707（４.4％）（3.8％）FY2021

FY2022

3,655（4.2％）

Increase in selling expenses
such as advertising expenses+948

FY202311

Operating income increase and decrease factor
Strong purchases from individuals led to an increase in net sales and gross profit. As the increase ingross profit exceeded the increase in expenses, operating income rose sharply to 139% of the previous
year’s level.

(Millions of yen)

Personal expenses increased △1,059
Increase in selling expenses
such as advertising expenses △948
Increase in general andadministrative expenses suchas land rent
△664

12

Changes in ROA/ROE
Debt increased due to strong purchases.
ROE rose sharply as the increase in fresh inventory generated profits

ROA
13.7

16.7

ROE

（％）

13.2

11.7

11.1
12.9

12.5

12.8
9.7
3.3

6.1

6.3

5.8

5.2

9.8
1.2

0.0
2.0
△ 1.2
△ 3.2
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY202313

Statement of Cash Flows
Cash flows from financing activities turned positive due to increased investment in securing inventory
and opening new stores, etc.
Cash and cash equivalents(Millions of yen)

12,283

11,894
10,738

7,330

6,086
3,886

4,769
1,715

536

4,379
1,447

2,113

505

1,651
669

△ 700△ 107△ 1,393

FY2017△ 2,239

FY2018FY2019△ 1,268

FY2020Cash flows fromoperating activities

1,353△ 1,222

FY2021

1,134

1,536 1,849
Cash flows fromfinancing activities
Cash flows frominvesting activities△ 529△ 1,895△ 1,951

FY2022

FY202314

Non-operating income(loss) / Extraordinary income(loss)

Rent expenses on store 282（construct in progress）
Interest expenses
60
Other
22

Impairment losses 102
Loss on retirementof fixed assets
12
Loss due to temporary
closure6

Non-operating
losses 365

Extraordinary
losses 122

Non-operating
income 603
Compensation income 540
Dividend income
11
Commission income
5
Foreign exchange gain 5
Insurance claim income 3
Other
36

(Millions of yen)

Extraordinary
income 34
Grant income
29
Gain on sale of fixed assets 415

Balance sheet overview(Millions of yen)
Current assets

FY2022

FY2023

Change29,45335,322

5,868

Cash and deposits

9,080

10,382

1,302

Inventories

15,30818,705

3,397 →Increase cash on hand in preparation for personal purchases

Other current
assets

5,096

6,234

1,169 →Individual purchases are brisk, SELBY Co., Ltd.

Non-current assets

10,213

11,4301,217

Assets39,66746,753

7,086

Liabilities

18,96622,506

3,539

13,51916,498

2,979

5,446

6,007

560

Net assets

20,70024,2473,546 other factors

Liabilities andnet Assets

39,66746,753

7,086Interest-bearing liabilities

Other liabilities

Inventory increased due to grouping→Increase in cash on hand and inventories, increase ininterest bearing dept
→Attributable to an increase in retained earnings and16

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 foreign exchange 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）

135
95

97
(Million of yen )Inventories(Million of yen )FY2023

ChangeGross profit margin①

25.3%

25.6%

＋0.3ptinventory turnover②

3.8

3.7

－

96.1％

94.7％

△1.4pt

59

＊

ー

①×②
17,993Inventory write-down

14,630

FY2022

11,894
At KOMEHYO, in addition to quarterly review of inventory valuation, inventory
items that have been stagnant for more than one year were repriced toencourage turnover.

FY2021

FY2022

FY2023＊not calculated17

Overview by segment
The Brand Fashion business performed well in all areas: purchases from individuals, retail/corporate sales,
and auctions for corporate clients. The Tire and Wheel business also performed well in both the new andused goods businesses, with both sales and profits increasing.
(million of yen)

1Q

YoY

2Q

YoY

3Q

YoY

4Q

YoY

FY2023

Brand
FashionTire and
Wheel
Real estateleasing

Net sales

17,794134.0％

19,519124.6％

21,538123.4％

22,380110.3％

81,234121.8%

Operatingincome730

154.4％

1,002

176.1％

1,638

145.1％

1,485

137.1％

4,856

149.2%

Operatingmargin4.1%＋0.5pt5.1％＋1.5pt7.6％＋1.1pt6.6％＋1.3pt5.9％＋1.1ptNet sales

947

109.6％

935

118.4 %

1,925

109.0％

1,025

106.6%

4,833

110.3%

Operatingincome

2

－

△9

－

303

131.9%

△50

ー

245

166.7%

Operatingmargin

0.3％

－

－

－

15.8％

＋2.8ptーー

5.1%＋1.7ptNet sales

71

84.9％

71

84.5％

71

84.7％

71

88.5％

286

85.6%

Operatingincome

21

86.5％

20

80.8％

22

83.1％

20

85.7％

84

84.0%

Operatingmargin30.3%＋0.5pt28.8％△1.4pt30.8％△0.6pt28.7％△0.9pt29.7％△0.5pt18

Changes in gross merchandise value
GMV, which indicates the scale of our business, is an indicator of the promotion of relay use.
GMV growth leads to business growth and improved profitability(Millions of yen)

59,424

40,77831,92632,962

39,071

36,42051,07751,673

FY2022 2H

FY2023 1H

41,097

27,692FY2019 1H

FY2019 2H

FY2020 1H

FY2020 2H

FY2021 1H

FY2021 2H

FY2022 1H

FY2023 2H

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

19Breakdown of consolidated Net sales (Retail / Overseas/Domestic tax-free sales)【Retail】 Corporate sales had a higher percentage due to strong purchases and for keeping stock new and fresh, whereas retail was also bullish,
keeping its share at slightly below 50%.
【Overseas】 The overseas sales ratio dropped mainly due to buoyant domestic sales and the impact of lockdowns in Shanghai.
【Tax Free】 The ratio of tax-free sales was trending upward with the easing of entry restrictions in October 2022.

Retail ratio

Overseas ratio
Overseas*
9.4%

Corporate
sales,etc.*

53.1%

FY2023
Net sales
86,113(Millions of yen)* "Corporate sales" includes auction fees.

Retail46.9%

FY2023
Net sales
86,113

Domestic tax-free sale ratio
Tax free*
5.9%

FY2023
Domestic sale(Millions of yen)Domestic

Taxation

90.6%

94.1%

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

*Calculated before elimination of internaltransactions

20

Breakdown of domestic duty-free sales【 Composition ratio by country/region】 The top four countries are in Asia, accounting for about 70%【Percentage of purchasers by age group】 Younger than the domestic customer base, generation Y is the volume zone

Composition ratio bycountry/region

Percentage of purchasers
by age group

Others
China

24.2%

28.7％

32.9%
America

Domestic dutyfree sales(FY2023)

27.7％
20.0％

13.6％

6.2%

9.0％

ThailandTaiwan9.4%
Philippines

14.4%

12.9%

※Aggregated by issuing country/region from passports

0.7％
10's

0.2％
20's

30's

40's

50's

60's

unclear21

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 】Gross profit margin increased 2.5 pt YoY due to an improved purchase ratio
and a decrease in the sales composition ratio of watches with lower gross profit margins.
29.6
26.1

24.0

Gross Profit Margin(%)

27.7

28.1
25.6

26.3

27.6
24.2

25.2

25.0

26.7

Consolidated
Net Sales(Million of yen)
12,957 15,132 14,771

14,162 16,472

19,237 21,276

18,753 20,466

23,475 23,417

7,861

1Q

2Q

3Q

FY2021

Trend ingross profit margin

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

4Q

FY2023

・The figure tends to rise in the third quarter, when the ratio of retail is high in the year-end busy season.
・Inventories are revised in September and in March. The figure tends to fall in the second and fourth quarters.
・The figure may vary depending on the weightings of items that can be purchased.

22

Purchase from individual customers (Group total)
In addition to the opening of KOMEHYO/BRAND OFF (FC) purchase centers and KOMEHYO GINZA,
strong purchases at existing stores and events drove steady growth in the amount of purchases per
customer, setting a new record for annual purchases per customer.
Number of stores

180
137

137

162

148

170

180

98
Purchase fromindividual customers(Group total)(Millions of yen)

34,144

43,613

9,858

11,052

10,552

11,740

FY22-4Q

FY23-1Q

FY23-2Q

FY23-3Q

10,26816,172
FY2021

FY2022

FY2023Compared to the same
period in the last 3 years

FY23-4Q

Quarterly trends* The individual purchase amount is the amount purchased from an individual customer through thefollowing route.
・Purchasing at stores
・Purchasing at visited sites
・Purchasing at events (KOMEHYO)
・Purchasing using home delivery servicesKOMEHYO)

23

Corporate auction volume
JBA (especially real auctions in Kanazawa) is performing well due to an increase in the number of member companies.
The total trading volume for the full year was 116% compared to last year, reaching a record high.
Number of registered members
2,755

3,124

3,659

3,124

3,280

9,969

10,255

3,409

3,573

3,659

9,854

10,346

10,33440,74935,246

Trade volume(Millions of yen)

24,876JBA
KOMEHYO
AuctionFY2021
FY2022
FY2023Compared to the same
period in the last 3 years

FY22-4Q

FY23-1Q

FY23-2Q

FY23-3Q

FY23-4Q

Quarterly trends※ KOMEHYO AUCTION（KOMEHYO AUCTION is held）： online bidding. About 30% of all products handled are from group companies.
JBA（K-BRAND OFF is held)： TOKYO－REAL（Bidding）、KANAZAWA－REAL（Bidding）、JBA Live Net AUCTION－online（Bidding）
About 20% of all products are from group companies.
※ Corporate auction sales＝ Trade volume × commission

24

Product distribution （FY2023)
Purchasing

Purchase from individual
customers

78％

KOMEHYO
Merchandise center

Stores/Home delivery Purchasing/Purchasing at
events/Purchasing at visited sites

39％

27％

28％

Purchase from
corporations

Sale

quality/market/distribution

6％
22％

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

41％

Suitable for retail

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.

RetailStore
WEB（company,Other company,live commerce）

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

59％

Corporate sales
Auction（company,Other company）
Event
wholesale（domestic・overseas）
Live commerce25

Efforts to strengthen purchasing （KOMEHYO）
achievement
Plan
New store opening＜branch store＞
More than 30 purchase centers have been
opened since the previous fiscal year,
and 100 purchase centers will have been openedin the three years, in places where customers
pass by daily.
We are planning to increase purchase fromindividual customers by 3.0 billion yen per year
(1.5 billion yen during the fiscal year), targetingpurchases from individual customers at 100
million yen per purchase center.

＜Purchase event ＞
At commercial facilities and department storesconsidered to be reassuring, familiar and close to
consumers since they are found in their daily life.

・Opened 28 stores specializing in purchases(directly managed).
FY2022

FY202332stores28stores・3.9 billion in store openings in the fiscal year
ending March 2022 (120 million on average), 1.5
billion in store openings in the fiscal year ending
March 2023.
・Increased purchase amount of 5.4 billion yen.
Signboard effects from increased number ofstores have a positive impact on existing stores

Purchase event , existing store＜Purchase event ＞
・Held a total of 135 times in 33 prefecturesnationwide.
・New rate is 90%
・A place to build relationships with newcustomers who have never used KOMEHYO,
department stores and commercial facilities. It isalso connected to the opening of permanent
stores.
＜existing store＞
・Existing stores: YoY 110.6%

26

Efforts to strengthen purchasing （BRAND OFF）
achievement
Plan
New store opening＜branch store,In-house auction＞
A hundred franchised purchase centers will be
set up in the three-year period starting in theprevious fiscal year.

In FY2023, the second year of the store opening
plan, the company plans to open 20 stores.
We are aiming to introduce at least 20 new
stores by the end of the current fiscal year.
Items purchased at franchise purchase centers
are put to auction (JBA). The trade volume thusincreases.
Product
commercialization

General customers

General customers

Exhibit
General customers

FC
General customers・
Corporation

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

Corporation

Opened 14 stores specializing in purchases (FC).
FY2022

FY2023

2stores

14stores

Purchase event , existing store＜Purchase event ＞
・Regular purchase events will be held in
Kagoshima, Kumamoto, and Miyazaki from
September 2022. Held a total of 11 times.
・New rate is 90%

・The annual target of 20 stores has not beenachieved.
【cause】
・The BRAND OFF Ginza main store, which openedin October 2022, performed well and prioritizedresources.

・Focusing on continuous growth after store
opening, taking time to discuss with FC owners.
（The number of store closures of purchased stores(FC) that opened is 0）＜existing store＞
・The BRAND OFF Ginza flagship store has
performed well in terms of both sales andpurchases since its relocation and opening in
October.
Average sales 6 months after relocation YoY172%
Average purchase price for 6 months after relocation
YoY152%【plan revision】
Expecting to open 40 stores in the fiscal year ending
March 31, 2024.

27

Opening the purchase center (KOMEHYO)
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.

(100 million of yen)
15
15

30
30

Stores opened in FY2024
Stores opened in FY2023
Stores opened in FY2022

39
20
Existing
store

FY2021

FY2022

FY2023

FY2024(PLAN)

28

E-commerce-induced sales rate(KOMEHYO)In 4Q, due to the impact of the watch market, the composition ratio of watches in the EC-related sales decreasedby 10.8 points compared to the same period of the previous year.
Due to the increase in the sales ratio of foreign visitors to Japan, the EC-related sales ratio in FY2023.3 was 40.9%,
down 5.7 points from the previous term.
E-commerce-induced sales rate：EC Sales as a Percentage of Retail Sales

42.7

46.6

10,141

40.9

9,915

49.5

43.6

2,803
2,197

7,649

44.6

2,512

38.0

38.6

2,586

2,619

E-commerce
induced sales(Millions of yen)

KOMEHYO website

Back orders
Others

FY2021

FY2022

FY2023Compared to the same
period in the last 3 years

FY22-4Q

FY23-1Q

FY23-2Q

FY23-3Q

FY23-4Q

Quarterly trends※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

Usage status of members(KOMEHYO)
The majority of members use "store purchase only" and "purchase only", but there are some who
use it repeatedly. OMO strategy and store openings specializing in purchases have increased thecomposition ratio of “EC purchase only” and “purchase only”
EC only(6.8%→7.2％)

Use all(0.7%→0.7％)
Store purchase ＋EC purchase(0.7%→0.7％)

Purchase ＋EC(0.8%→0.9％)

Purchase only
(34.7%→36.7％)

Purchase＋ Store purchase(10.8%→10.6％)

Store purchase only
(45.6%→43.4％)

Change in UU composition ratio
FY2014~FY2022→FY2014~FY2023(Members who joined after November 2010)30

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

ThailandTaiwanSingapore

brand

Services todeployPurchase （toC）
Sale （toC）

Purchase（toC）
Purchase（toB）

Purchase（toC）
Sale（toC）

Purchase（toC）
Sale（toC）

Purchase（toC）
Purchase（toB）
Sale（toC）

Purchase（toC）

Number ofbases

2stores

1base

7stores4stores

3stores

Opened in May
2023

Due to restrictions on
going out, some stores
were closed. Concentrate
management resourcesand open sales/purchaseflagship store in December
2022

From October 2022, wewill start purchasingfrom individuals.
Favorable performance.
Some of the purchased
products are consigned
to the BRAND OFF
Hong Kong store forover-the-counter sales.

The One store will be
relocated and opened
on May 26, 2023.

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

90% of purchases are
made by individuals,
realizing a highly
profitable structure. We
also focused on livecommerce using SNS,and this sales increased
by 239% compared tothe previous
year.Scheduled to open
Taichung Guangzhong
SOGO store on June 1,
2023。

TopicsCollaborate to strengthen retail

Established in
December 2022. In May
2023, we will open apurchasing base in thecenter of the country.

31

Tire and Wheel
Non-snow season sales increased due to increased overseas export sales and strengthened used product sales
Craft
・Sales of winter tires grew steadily, up 10% yearon-year. Increased profit margin due to unit priceincrease due to manufacturer price hike・50th anniversary events are held throughout theyear. custom
By increasing the number of wheels andaccessories for users
Attracting customers and increasing unit purchase
priceAuto Parts Japan• An automatic washing machine was introduced
to improve the efficiency of used productoffering operations. This widened the range of
products handled in e-commerce malls,
increased the number of items proposed andincreased sales.
• Data on used items markets began to be stored
for the construction of a system for making
purchases at more appropriate prices.

4×4 engineering service•••

Introduced an automatic washing machine to improve theefficiency of used product offering operations, which
resulted in an increase in sales
Overseas export sales leaped 51% year on year.
The lineup of mainstay products such as Bradley and
Air/G improved to increase the number of car models thatare compatible with them as well as size variations. That
bolstered sales in Japan and overseas.

32

１．Overview of Financial Results and Initiatives
for the Fiscal Year Ended March 31, 2023

２．Medium-term Management Plan

33

Medium-term management target(Until FY2026)
FY2024(million of yen)first half

FY2025

FY2026full year

full year

full year

Net sales

48,000100,000

120,000

140,000

Operating income

2,250

5,800

7,000

8,100

Operating margin

5.0%

5.8%

5.8%

5.8%

Ordinary income

2,250

5,800

7,000

8,100

Net income
attributableto owners of parent

1,600

4,000

4,800

5,600

ROE

ー

15% or more

15% or more

15% or more

Capital adequacy
ratio

ー

50% or more

50% or more

50% or more

EPS（yen）

ー

365

438

511

payout ratioー

Aim for 20%

Aim for 20%

Aim for 20%

34

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.)

・Investment in inventory essential for securing sales
・Investment in human resources that support the Group(recruitment, training, reskilling)

Growthinvestment

・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%

35

Shareholder return policy
While giving top priority to investment for growth, we aim to increase dividends stably with a dividend
payout ratio of 20% as a target for shareholder returns.
payout ratio(%)
15.5

20.8
17.7

16 yen dividend increase
Year-end dividend(yen)interim dividend(yen)28yen dividend increase
38
35

20

12

25

38

FY2022

FY2023

FY2024

achievement

plan

Predict36

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.

37