Earnings Results
Briefing for the First Quarterof the Fiscal Year Ending
March 31, 2023
August 12, 2022
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

Contents

１．Overview of Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2023
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2023
３．Reference Information

1１．Overview of Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2023
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2023
３．Reference Information2

FY 2023 1Q Financial Summary【Brand・Fashion business】
・Net sales increased 34.0% YoY and operating income also increased 54.5% YoY.
Operating profit margin grew by 0.5pt YoY.
・Record high purchases from individuals due to store openings and purchase events, etc.,with openings of 11 purchase centers (of which, three are franchised stores).
・Corporate sales were also strong due to steady purchases from individuals.

【 Tire and Wheel business 】
・Net sales increased 9.6% YoY .Sales and income rose to attain a positive

operating income figure in the first quarter since the fiscal year ended
March 31, 2013.
・CRAFT's 50th anniversary campaign produced strong results.
Sales per customer rose after the acquisition of new custom product users.
・Release of new products from 4×4 Engineering Services.

3

Revision of results forecasts for the first half and the fiscal year
ending March 31, 2023
Sales exceeded the initial plan due to strong individual purchases and ample inventory.
In addition, we were able to control expenses through advertising that emphasized efficiency,
so each profit was increased.
(Millions of yen)

1H
FY2023

FY2023

Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners ofparentBasicearnings per
share

Forecasts released
previously

35,500

1,160

1,020

700

63.89

Revised forecasts
announced on thisoccasion

38,500

1,550

1,430

1,000

91.27

Change

3,000

390

410

300

－

Rate of change

8.5%

33.6%

40.2%

42.9%

－

Forecasts released
previously

78,000

3,780

3,780

2,450

223.61

Revised forecasts
announced on thisoccasion

82,500

4,350

4,350

2,830

258.30Change

4,500

570

570

380

－

Rate of change

5.8％

15.1％

15.1％

15.5％

－

4

Shareholder return
The annual dividend forecast is revised upwards from 44 yen to 50 yen per share, in considerationof the projected income level and others for the fiscal year ending March 31, 2023.
Aiming to increase dividends consistently in line with the status of profit and cash flow.
Payout ratio(%)

92.4
36.2

24.8

29.3

23.0

16.6

15.5

15.0

30.6

19.4

34.7
15.5

19.7
(planned)25

Fiscal year-end dividendInterim dividend

5
7

7
5

7
7

8

10

8

9

15
11

14
14

15
15

15
15

15
15

16
16

20

8
16

25

8
8

12

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

5

Economic Trend
KOMEHYO's net sales are hardly affected even under the pandemic.
Demand for high-priced items was strong.
30,000

Nikkei Stock Average(monthly closing price)(yen)Department store(fine arts/jewelry/precious metals)(10 millions of yen)
KOMEHYO Net sales(Millions of yen)

20,000
6,000
5,000
4,000
3,000
2,000
1,000

The COVID-19
2nd wave

The COVID-19
3rd wave

The COVID-19
4ht wave

The COVID-19
5th wave

The COVID-19
6th wave

The COVID-19
7th wave0
FY2023(Source：JAPAN DEPARTMENT STORES）

6

Overview of income statement(Millions of yen)

FY2021 1Q

FY2022 1Q

FY2023 1Q

Change※YoY※

Net sales

7,861

14,162

18,7534,591

132.4%

Gross profit

1,888

3,985

4,717

732

118.4%

24.0％

28.1％

25.2％

△2.9pt－SG&A expenses

2,748

3,476

3,978

502

114.4%

Operating income

△860

508

739

230

145.3％

ー

3.6％

3.9％

+0.3pt

－

△937

515

760

244

147.4％△1,229

337

519

182

154.0％

Gross profit margin

Operating profit margin
Ordinary income
Net income attributableto owners of parent

7

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.

Operating income(Million of yen)

Increase in selling expenses
such as advertising expenses△229
Increase in personnel expenses
such as salaries and allowances△204
Increase in general and administrative
expenses such as commission payments △ 68

8

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

35.0

24.5

21.2

1,456
Increase in general and administrative
expenses such as commission payments ＋68

1,388
1,077
1,746
1,542

Increase in personnel expenses
such as salaries and allowances＋204

Increase in selling expenses
such as advertising expenses

＋229

1,282
388

545

774

FY2021-1Q FY2022-1Q FY2023-1Q
9

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

Rent expense on store(construct in progress)47
Interest expenses
14
Other
2

Impairment loss 1
Loss on retirement of fixed assets 1
Extraordinary loss 2

Non-operating loss 64
Non-operating income 85

Foreign exchange gains 34
Compensation income 29
Dividend income
10
Commission income
1
Other
7

(Millions of yen)

Extraordinary income 3
Grant income 3

10Balance sheet overview(Millions of yen)

FY2022

FY20231Q

Change29,45333,311＋3,857

9,080

9,946

＋866

15,30818,208+2,900

5,065

5,155

+89

Non-current assets

10,213

10,947+733

Total assets

39,66744,258＋4,591

Liabilities

18,96623,057＋4,090Interest-bearing
liabilities

13,51918,486＋4,966

Other liabilities

5,446

4,571

△875

Net assets

20,70021,201＋500

Liabilities andNet Assets

39,66744,258＋4,591

Current assets
Cash and deposits

Inventories
Other current assets→Cash on hand increased due to buoyant purchasesfrom individuals.
→Inventories increased with improved purchasesfrom individuals.

→Borrowings increased due to an increase in cash on handand inventories.

→Attributable to an increase in retained earnings and other factors

11Overview by segment
In the Brand Fashion business, both sales and profit increased thanks to strong purchases fromindividuals and the strong results of auctions for companies. Sales and profit also increased in
the Tire and Wheel business owing to the strong sales of custom products.
FY2021 1Q

FY2022 1Q

FY2023 1Q

Change※YoY※

Net sales

7,137

13,277

17,7944,517

134.0％

Operating income

△823

472

730

257

154.5％

Operating margin

－

3.6%

4.1%

－

－

Net sales

711

864

947

83

109.6％

Operating income

△33

△20

2

23

－

Operating margin

－

－

0.3％

－

－

Net sales

16

84

71

△12

84.9％

Operating income

△3

25

21

△3

86.5％

Operating margin

－

29.8%

30.3%

－

－

(million of yen)

Brand
FashionTire and
Wheel
Real estateleasing12

Breakdown of consolidated Net sales (Retail / Overseas)
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%.
The ratio of overseas sales dropped temporarily, attributable mainly to buoyant domestic sales and the
lockdowns in Shanghai.

Overseas
9.1%
Corporate
sales,etc.
53.7%

FY2023 1Q
Net sales
18,753Retail46.3%(Millions of yen)

FY2023 1Q
Net sales
18,753(Millions of yen)Domestic
90.9%
・ "Corporate sales" includes auction fees.

• “Overseas” is the sales of overseas group companies.
• The ratio of overseas business does not include domestic
tax-free sales, etc.

13Purchase from individual customers (Group total)
Purchases from individuals remained favorable with the opening of Komehyo’s purchasing centers, the holdingof KAITORI Go purchasing events, and an increase in the amount of purchases per customer.
Number of stores
148
109

93

109

116

126

137

148

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

11,052
7,574

7,574

7,728

8,983

FY2022 1Q

2Q

3Q

9,858

11,0524Q

FY2023 1Q

2,535
FY2021 1Q

FY2022 1Q

FY2023 1Q

Year-on-year trend in the past three years

Quarter-by-quarter trend※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・Purchasing using home delivery services

14

Trends in Consolidated Net sales and Gross Profit Margin
In FY2022 4Q, corporate sales with a low gross margin increased significantly, mainly reflecting
the steep rise in gold market price.
Gross profit margin(%)
28.1

28.1
25.6

25.2

24.0

26.3

24.2

25.2

Net Sales(Millions of yen)
18,753
14,162

14,162

FY2021 1Q FY2022 1Q FY2023 1Q

FY2022 1Q

16,472

19,237

21,276

3Q

4Q

18,753

7,861

Year-on-year trend in the past three years

Trend in gross profit
margin2Q

FY2023 1Q

Quarter-by-quarter trend

・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.

15

Changes in corporate auction trade volume
JBA auctions (particularly the offline auctions in Kanazawa) continued to be strong due to anincrease in the number of registered members.
The total volume of auctions among companies increased 29% YoY.
Number of registered members
2,812

3,280

2,812

2,966

3,095

10,255
7,948

7,948

8,775

3,124
9,969

3,280

Trade volume
10,255 (Millions of yen)

8,553

JBA

3,518

KOMEHYO
AuctionFY2021 1Q FY2022 1Q FY2023 1Q
Year-on-year trend in the past three years

FY2022 1Q

2Q
3Q
4Q
Quarter-by-quarter trend※KOMEHYO auction：The online auction 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 method

FY2023 1Q

16

E-commerce-induced sales rate(KOMEHYO)
While the infection situation of the new corona is calming down, shopping habits via EC are firmly established
Focus on own EC site (KOMEHYO ONLINE) with high advertising cost-effectiveness by controlling the numberof listings on other companies' sites
48.2

E-commerce-induced sales rate：EC Sales as a Percentage of Retail Sales

43.7

43.6

43.7

46.1

43.8

49.5
43.6

E-commerce
induced sales(Millions of yen)

2,814
2,021

2,197

2,021

2,803

2,333

2,197
KOMEHYO
website

1,253

Back orders

Others

FY2021 1Q FY2022 1Q FY2023 1Q
Year-on-year trend in the past three years

FY2022 1Q

2Q
3Q
4Q
Quarter-by-quarter trend

FY2023 1Q※KOMEHYO website: Make a purchase by directly clicking the KOMEHYO online 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 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.

17

１．Overview of Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2023
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2023
３．Reference Information

18

Stores：Group total 148 stores（As of June 2022 )The figure in parentheses ( ) represents the increase during the first quarter.

Brand Fashion

Tire and Wheel

Flagship stores

5

－

２

1

－

－

－

Sales Stores

－

2

－

6

2

－

－

Stores annexed withsales facilities

12

6

2

－

－

10

4

Purchasing Center

67 ( 8 )

－

8

－

－

－

－

Franchised
purchasing centers

－

－

5(3)

Overseas

5

－

11

－

－

－

－

Total

89

8

28

7

2

10

4

BRAND OFF
KANAZAWA store

Shellman GINZA store

WORM OSAKA

Craft NAKAGAWA store

19Effect of opening the purchase center (KOMEHYO)
More than 30 purchase centers have been opened since the previous fiscal year,
and 100 purchase centers will have been opened in the three years, in places where customers pass by daily.
We are planning to increase purchase from individual customers by 3.0 billion yen per year (1.5 billion yen
during the fiscal year), targeting purchases from individual customers at 100 million yen per purchase center.
(100 million of yen)

15
30

15
30
30

New store
opening
Existing
store

20

257
169

FY'21

FY'22

'FY'23(PLAN)(achievement)

FY'24(PLAN)

20

Efforts to strengthen purchasing（KOMEHYO）
Eight purchasing centers launched
Mainly inside large commercial facilities in an extensive area from
Kanto to Kyushu
PARCO-ya UENO / PERIE CHIBA / Colette Mare/
Luvit town KARIYA/ TAKATSUKI HANKYU / KOBE OKAMOTO/MARK IS MOMOCHI / AEON MALL TSUKUSHINO

33 purchase events held
• At commercial facilities and department stores considered tobe reassuring, familiar and close to consumers since they arefound in their daily life
• Events may lead to launch of permanent stores.

21

Efforts to strengthen purchasing（K-BRAND OFF）
A hundred franchised purchase centers will be set up in the three-year period starting in the previous fiscal year.
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 thus increases.

Three franchise purchase centers launched
GOTANDA TOC store / YOKOHAMA MOTOMACHI store/ SUBWAY NANBA store

An increase in bases for purchase helped increase the trade volume
in the auction.
Product
commerc
ialization

Generalcustomers

Generalcustomers
ExhibitFC

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

Corporation

22

Product distribution (FY2023-1Q KOMEHYO)・Stores
・Home delivery
Purchasing
・Purchasing at
events・Purchasing at
visited sites

45％

27％

Purchase fromindividual customers

・Suitable for retail

77％

23％

Retail38％

4％

KOMEHYO
Product
centerQuality
Market priceDistribution

Purchase from
corporations*

Corporate
sales

23％

62%

Supplementing individual purchases mainly
for the purpose of maintaining theattractiveness of stores• Not appropriate for retail(bad condition, etc.)• Expensive stock• High market price risk

・Stores・Web
KOMEHYO
websiteOtherswebsite・Auction・Wholesale
Domestic
Overseas
・Events
IJT, etc.

23

Continue strengthening OMO（KOMEHYO）
Customer services on smartphones
A total of 287 staff members across the country holds
smartphones exclusively for customer services todigitally communicate directly with customers.
After-sales services and customer needs are stored inform of data and notices are given about incoming goods.
That opens the way for more in-depth one-to-one
communication.

Live Commerce
Chinese influencers launch live commerce sites onsocial media.
That increases frequency of live commerce events.
KOMEHYO will handle inventories for live commerce
in a bid to boost profitability of corporate sales.

contact center
A contact center was set up in August 2020 as a function
for the e-commerce.
It responds to inquiries on goods, how to operate andothers through voice and chat communication.
KOMEHYO seeks to build a shopping environment thatallows customers to purchase without worries on the
non-face-to-face platform and to easily obtain
information they want.

。

Number of chats

1.2 folds YoY

Number of orders placed over the phone

actualresults

Number of customers that can becommunicated1.3 Folds YoY
Number of sales
1.5 Folds YoY
Number of purchases 1.5 Folds YoY

actualresults

Sales

1.3 folds YoY

actualresults

1.5 folds YoY
Sales per customer through the contact center
2.4 folds the level without throughthe contact center24Technology indispensable to store operation：AI
The system has been introduced to all the KOMEHYO purchase centers, all of K-Brand Off's franchised purchase centers and someof the LINK SMILE and USED MARKET shops. 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 growth of the Komehyo Holdings Group.

purchase KOMEHYO
centers LINK SMILE
USED MARKET

Assessing authenticity and model numbers ofbags, wallets, purses and small articles fromfamous brands. Supporting Hermes, Louis
Vuitton, Chanel, Gucci and Prada

Futuredevelopment plan

Improvement ofcommunication withcustomers（ Enhanced CX ）training
assessors

Franchised
purchasing
centers

Curtailment of time fortraining assessors(Shorter lead time for launch)

BRAND OFF

Support for owners(Superiority in acquisition of
new franchisees)

Purchase events

Improvement of communication with customers

GLOBAL

Prevention of the know-how drain
To be introduced to overseas stores as well25

Format of auctions among companies
KOMEHYO Auction and JBA complement each other in terms of area, date and format of the event.

Frequency of corporate auctions(K-BRAND OFF)

Jewels /watches /bags

Online auction 2 times/ month

Apparelclothing

Online auction Monthly

JBA
Kanazawa

Real auction Monthly

JBA Tokyo

Online auction Monthly

JBA
Live net

Online auction
Every Monday and Thursday

26

Oversea（SAHA KOMEHYO (Thailand)）The Delivery Buying Service, a purchase service for existing customers that involves a pickup of goods to be purchased, wascommenced in May 2022 for the purpose of strengthening contact-free purchase services.
Users send an application on the LINE app and the goods are transported to the store by a mixed cargo transport service.

27

Tire and Wheel
Sales and income rose to attain a positive operating income figure in the first quarter
since the fiscal year ended March 31, 2013.

CRAFT
The 50th anniversary event was held to increase
wheels and supplies for custom product users．
It leads to attracting customers, and the average
price per customer increases.

Auto Parts Japan• Strengthened full-year sales of winter items online andincreased sales.
• Introduced an automatic washing machine toimprove the efficiency of used product offering
operations

4×4 engineering service•••

Transactions via social media with new users living
overseas increased.
Active participation in offline events led toacquisition of orders.
Country suspensions for the new Mitsubishi Delica
D:5 and other models sold well.

28

１．Overview of Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2023
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2023
３．Reference Information

29

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: 987 Non-consolidated: 11 (As of June 2022)

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
Stock

March

Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)30

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

2022

●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●75th ANNIVERASARY●Shift to the Standard
Market of the Tokyo
Stock Exchange andto the Main Market of●Acquired Four by four engineering service
the Nagoya Stock
Co.,Ltd●Retail store KOMEHYO opened in Bangkok, Exchange
Thailand●Acquired K-BRAND OFF Co.,Ltd and two
overseas subsidiaries

31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.
32

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".

33

KOMEHYO HD Group materiality (important issue)
Work on four tasks of purchase, sales, appraisal, and restoration to realize the circulation of value throughenvironmentally and socially conscious recycling, in pursuit of both promotion and growth of reuse and value
improvement of used goods.

Purchase Making reuse a common practice in society
Promotion and growth of reuse
Sales

Purchase

Restoration

Appraisal

Sales

Developing the reuse market further

Appraisal

Pursuing fair sustainability
Value improvement of used goods

Restoration

Restoring value with our unique technical capabilities

Value Chain for RELAY USE

34

A value chain where value circulates through relay use
Developing the reuse market further

Making reuse a common practice in society

Contributing to the development of the reuse market by proposing quality
items, taking advantage of the diversity of new items, unused items, items
for reuse, and others

Making it a common practice to sell goods which will no longer be used
Promoting education and creating opportunities for breaking away from thesocial structure of mass production for mass consumption● Revitalizing the reuse market through BtoB auctions● Initiatives to ensure that recycling of goods creates new value and leads to happiness● Providing unique value● Strengthening measures to drive KAITORI GO (creating opportunities through cross-industrial
collaboration)● Disseminating the reuse culture to other countries to deliver quality● Improving engagement

used goods to the world● Disseminating the culture of handing down goods from person to person, from Japan to the world● Introducing environmentally friendly shopping bags

● Creating an environment where goods can be purchased casually without worry● Expanding the reuse customer base in Japan and overseas● Cooperating with related government ministries and agencies and related organizations

Sales

Purchases

Restoration

Evaluation

Restoring value with our unique technical capabilities
Creating new value by understanding the intrinsic value of goods andapplying expertise that has been accumulated internally over many years 。
● Manufacturing and discovering distinct, attractive products● Next vintage, vintage, and antique products● Repair/restoration of fashion items, bags, watches, and jewelry● Product lineup for offering good quality from all over the world● Improving product knowledge● Developing the standard of product quality of Japan in other countries

Pursuing fair sustainability
Creating a sound reuse market, where anyone can have a sense of
security, with the Komehyo Holdings Group's skills to determine the value● Promoting reuse technologies (use of AI for assessing authenticity and model numbers)● Eliminating counterfeit goods from the reuse market● Working together with partners (business partners, franchised store owners, and auction members)● Efforts to ensure fair purchase prices and sales prices● Awareness-raising activities to prevent trouble or damage related to reuse , such as coercive buying● Developing appraisers with a unique curriculum

35Corporate governance system

The Group's management efficiency
and business performance are aimed
at respecting the interests of not only
shareholders, but also employees,
customers, business partners, creditors,
local communities, and other people
who have great influences andinterests. We are working onstrengthening corporate governancewith an emphasis on improvement andcompliance as the most importantmanagement issue.

36Officer system

Skills matrix

Name

Takuji Ishihara

Toshio Sawada

Yuya Yamauchi

Masaru Hirauchi

Yoshiko Nakahara

Kazutoshi Torita

Momoko Murase

Miyuki Minamiru

Title

President andRepresentative Director

Managing Director

Director

Outside Director

Outside Director

Director(Audit and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)

Outside Director(Audit and Supervisory
Committee Member)

Corporate management

〇

〇

〇

〇

Management strategy andplanning

〇

〇

〇

〇

〇

〇

Marketing〇〇〇Experience and knowledge
in the industry

〇

〇

〇

〇

Business development andinnovation〇

Global
IT・DX

〇
〇

〇

〇

〇

〇

〇

Finance・Accounting〇〇

Legal・Risk Management〇

governance
ESG・Sustainable〇

Qualifications, etc.

MBA

〇

〇

〇

CPA
Tax accountant

Lawyer〇Small business doctor

37

Business system diagrampurchase

Sales

Home delivery
Purchasing

WEB

Purchasing at
eventsAuctionPurchasing at
visited sites

New and used goods business

Used goods businessStoresGeneral customers, etc.

General customers, etc.

StoresUsed goods businessAuctions by other companies

38Medium-term management target (until FY2025)
FY2023 *1(Millions of yen)

1H

FY2024 *2

FY2025 *2*3

Full year

Full year

Full year

Net sales

38,50082,50085,000100,000

Operating income

1,550

4,350

4,400

5,500

Operating profit
margin

4.0％

5.3％

5.2%

5.5%

Ordinary income

1,430

4,350

4,400

5,500

Net income
attributableto owners of parent

1,000

2,830

2,850

3,450

*1 Earnings forecast revised on August 8, 2022
*2 A rolling forecast will be provided in May 2024.
*3 It is expected that retail sales will increase as inbound demand returns in the fiscal year ending March 2025.

39

Sales plan
100,000(Millions of yen)

82,50085,00071,14857,51050,96040,212

43,19945,90350,72345,497
40,134FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

40

Operating Profit Plan
7.5

Operating Income
Margin (%)

7.2
6.1

5.2
3.6

5.3

5.2

5.5

3.7

2.1
0.5

1.2
5,500

4,350

2,999

3,129

Operating Income(Millions of yen)

4,400

3,714

2,789
1,625
832

1,860
297

590

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

41

Ordinary income/Net income Plan
Ordinary
incomeNet income
attributableto owners ofparent4,350(Millions of yen)

5,500

4,400

3,772
3,450
2,988

1,834

3,162
2,830

2,742

2,850

2,259

2,040
1,696

1,610
1,073

815

1,826
1,009
431△ 595

355
9 △ 234

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

42

Medium-term management plan:
Continuous business expansion through investments in growth businesses and human resource development

Brand Fashion
BtoC

BtoB

Oversea

１．Achieving growth with existing core businesses
２．Achieving growth with businesses that contribute to the distributionof used goods to revitalize the market
３．Achieving growth with businesses that contribute to market growth
and the formation of a sound market

Tire/Wheel
１．Strengthening profitability

メーカー

２．Strengthening product development
３．Making attempts at businesses and items with affinity
1次流通

2次流通

43

Growth in the brand reuse market image

Important investment items
・Human resource recruitment anddevelopment
・Stores (openings/reorganization)・IT (reuse technologies)
・Marketing
・Sustainability

Supporting managementfoundations
・Organizational development
・HR development③Businesses that contribute to distribution②Businesses that contribute to market growth①Core business

Achieving growth by
expanding networks withcustomers, such aspurchasing and selling
goods in Japan and othercountries

Increasing the grossmerchandise value(GMV) with businesses
linked with corebusinesses, such as
operation of BtoB
auctions

Businesses based on
support for or cooperation
with users and business
operators in the reusemarket provided andmade by using our own
assets, which lead to the
expansion of the reusemarket of brand goods

Tactics options
・M＆A
・Capital alliance・Business alliances

44Medium-term Management Plan : Brand・Fashion
Gaining more influence in the reuse market by making maximum use of the Group's assets
１．Achieving growth with existing core businesses＝Domestic＝・Increasing the number of purchasing channels(continuing to open purchase centers and strengthening alliances)
・Creating seamless customer touch points by using
digital technologies and improving the customer experience value through the reorganization of stores
・Improving the value of used goods by means of upcycling＝Overseas＝・Strengthening purchase and sales through the opening of new stores at each base, etc.
・Developing new bases
・Building a network for the distribution of products among overseas bases

45Medium-term Management Plan : Brand・Fashion
Gaining more influence in the reuse market by making maximum use of the Group's assets

２．Achieving growth with businesses that contribute to the distribution of used goods to revitalize the market
・Auctioning more items through franchise development(openings of 100 purchase centers by franchised stores)
・Providing reuse technologies, expertise, and market information to member companies
・Acquiring new member companies in Japan and other countries by using digital technologies

３．Achieving growth with businesses that contribute to market growth in Japan and overseas and the formation of a soundreuse market
・Supporting the growth of reuse-related businesses with SaaS・Supporting new entrant companies, etc. by using human resources and training systems
・Business cooperation using databases (customer data and product data)46

Medium-term Management Plan : Tire・Wheel
Expanding the business by strengthening profitability and investing in growth drivers
１．Strengthening profitability through collaboration among the three companies
・Strengthening and opening specialty stores developed according to customer preference・Strengthening the sale and purchase of used tires and wheels and controlling their inventory
・Improving productivity and strengthening expertise through investment in human resources

２．Investing in product development
・Planning and manufacturing wheels and automobile parts by taking advantage of brand power・Stepping up efforts to supply products to overseas markets
・Maintaining and increasing brand power in Japan and overseas

３．Approaching businesses and items with affinity
・Used cars
・Automotive supplies
・Car camping supplies

47

January 2023

Store development in the Ginza area
Ginza is an important area for strengthening retail sales.
Expand stores as a group and expand contact points with customers.

February 15, 2022

KOMEHYO
GINZA store●

KOMEHYO GINZA CLOSED

Feb 18-Aug 28 KOMEHYO GINZA LIMITED OPEN

KOMEHYO
Former
GINZA PLUS BRAND OFF
BRAND OFF ●GINZA store
GINZA
●
●
●Shellman GINZA MITSUKOSHI store● Former
KOMEHYO GINZA store

KOMEHYO GINZA PLUS image
メージ

September 1

KOMEHYO GINZA PLUS
Scheduled to open

Early October

BRAND OFF GINZA store
Scheduled to relocate● KOMEHYOGINZA LIMITED
Shellman
GINZA BARNEYS NY store ●January 2023

●Shellman GINZA store

KOMEHYO GINZA store
Scheduled to open

BRAND OFF GINZA store image

48

Human capital management（KOMEHYO）
In the business model of environmentally and socially conscious recycling, humans play a wide range of roles(knowledge, skills, expertise, speed, relationship with customers, etc.), making it important to take initiatives todevelop and retain human resources.

Sale

Purchase

Reproduction

Evaluation

49

Human capital management（KOMEHYO）
Groupwide training of personnel for the next generation

Education of assessors by a team dedicated toeducation

KOMEHYO provide opportunities for groupwide training aimed at developing
management personnel and executives for the next generation.
It continues training of staff to display their individual capabilities to thefullest degree.
It carries out organizational development directly linked to business
operations to ensure effective human capital management.

KOMEHYO focuses its efforts on education of assessors and sales staff.
The education team has systematized various knowledge and skills
involved in communication with customers.
The system will stably develop assessors requisite to store launch and help
shorten the lead time for it.

50

Human resources retention rate
Employee turnover rate has been low, which means that the employee retention rate has been high.
This enables to accumulate expertise, laying a foundation for stable growth.

General regular workers(except part-time workers)(Ministry of Health,Laver and Welfare)Turnover rate(KOMEHYO)
Turnover rate(GROUP)
12.9
11.3

11.7

12.4
11.5

12.2

11.8

11.4

11.6

11.3

11.4

10.7

8.8
7.6

5.0

5.8

5.8

5.2
3.6

4.5
3.2

3.9

4.6
3.0

3.7

4.0

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

51

Sales shares by segment and by sales channel (FY2022)
By segment

Brand/fashion businessby operating company

Tire and Wheel

Real estate leasing

Other

6.1%

0.5%

10.1%

By sales channel

Retail43.3%

K-BRAND OFF
Consolidated sales
71,148 million yen

14.8%

Brand and fashion businessamount of sales(FY2022.3)

66,688 million yen(FY2022.3)

Brand Fashion

KOMEHYO

93.4%

75.1%

Corporate

Komehyo Sales

sales 50,088 million yen
56.7%(FY2022.3)

EC related sales
46.6% of retail52

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.

53