Earnings Results Briefing
for the Fiscal YearEnding March 31, 2017
May，2017
KOMEHYO Co., Ltd.
Securities code: 2780
(Second Section, Tokyo and Nagoya Stock Exchanges)
Corporate Planning Department IR strategy group
Phone +81-52-249-5366

INDEX
１．Overview of Financial Results for the Fiscal YearEnding March 31, 2017

P.02

２．Business status

P.09

３．Plan for the Fiscal Year Ending March 31, 2018

P.29

４．Medium-term Management Plan

P.39

５．Reference Information (Company Profile, etc.)

P.43

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 anduncertainties.
These statements are prepared based on assumptions of the management of KOMEHYO Co., Ltd. using currently
available information.
Actual results may differ significantly from forecasts due to a variety of factors; therefore, investors should notplace undue reliance upon them.
In addition, this document is not intended to solicit investments. Investors should make investment decisions attheir own discretion.

1

Overview of Income Statement
Consolidated(Millions of yen)

FY2015(‘14.4-’15.3）

FY2016(‘15.4-’16.3)

FY2017(‘16.4-’17.3)

ChangeYoY

Net sales

43,19945,90340,134△5,76987.4％

Gross profit

13,16813,061

11,144△1,91685.3％

Gross profit margin

30.5％

28.5％

27.8％

△0.7pt－SG&A expenses

10,038

10,271

10,312＋40

100.4％

Operating income

3,129

2,789

832

△1,957

29.8％

Ordinary income

3,162

2,742

815

△1,926

29.7％

Net income
attributableto owners of parent

2,040

1,696

355

△1,34021.0％
2Overview of Income Statement
Non-consolidated(Millions of yen)

FY2015(‘14.4-’15.3）

FY2016(‘15.4-’16.3)

FY2017(‘16.4-’17.3)

ChangeYoY

Net sales

38,50740,55434,891△5,66286.0％

Gross profit

11,363

11,0909,339△1,75084.2％

Gross profit margin

29.5％

27.3％

26.8％

△0.5pt－SG&A expenses

8,590

8,664

8,836

＋172

102.0％

Operating income

2,773

2,426

502

△1,923

20.7％

Ordinary income

2,815

2,400

490

△1,90920.4％

Net income

1,830

1,480

147

△1,33310.0％
3Operating income increase anddecrease factor（ Consolidated ）Operating income declined due to a decline in net sales
and a 0.7 point drop in gross profit margin
3,000

2,500

(Millions of yen)

Administrative expenses+170
Selling expenses△95
Personal expenses
△34

2,789

Gross profit

2,000

margin drop
1,500

△275

1,000

0

FY2016

Expenses

Sales amountincreasedecrease△41△1,641500

S,G&A

Operating income（△1,957）

832

FY2017
4

Profit Margin Trend
SG&A expenses increased
due to declines in net sales and gross profit margin

Consolidated

（％）

35
30.9

31.4

Non-consolidated

（％）

35
30.5

30.2
28.5

30

27.8

25

30.5

30

29.5
27.3

26.8

25
24.8

20

25.7
23.9

23.2

22.4

24.1

20

Gross profit margin

15

15

6.1

7.2

22.3

Operating income margin

10
6.1

5

21.4

SG&A expenses to sales ratio

Operating income margin

7.5

22.9

Gross profit margin

SG&A expenses to sales ratio

10

25.3

6.1
2.1

0

7.6

7.2

6.0

5

1.4

0
FY2013

FY2014FY2015FY2016FY2017FY2013

FY2014FY2015FY2016FY20175

Overview of Balance Sheet
Products decreased due to enhanced inventory controls

Consolidated
Assets24,659Cash anddeposits
3,145

Products
10,488Other current
assets3,208
Non-current
assets7,817
FY201625,415
2,926

9,999

3,814

Liabilities and Net
Assets25,41524,659Current
liabilities
5,509
Non-current
Liabilities 997

Net assets
18,152

4,316
2,907

18,1908,674

FY2017FY2016

Non-consolidated(Millions of yen)

FY2017

Assets22,114
Cash anddeposits
1,742

22,694(Millions of yen)

Liabilities and Net
Assets22,114

22,694

Products
9,437

9,150

Current
2,815
liabilities
３,944
Non-current 2,741
Liabilities 861

Other current
assets
3,322

3,426

Net assets
17,307

17,137FY2016FY2017

1,732

Non-current
assets
7,611

8,386

FY2016FY2017

6

Statement of Cash Flows
Cash flow from investing activities resulted in a large net outflow
due to the opening of a large store

Consolidated(Millions of yen)

FY2015FY2016
4,257

4,500

Non-consolidated(Millions of yen)

FY2017FY2015FY2016FY2017

4,500

3,886
3,500

3,322

3,500

2,855
2,500

1,474

1,500

1,735

1,500

536

485

505

500

△ 1,500

2,692

2,500

1,499

△ 500

2,854

2,704

707

500

△ 466
△ 575

△ 500

△ 777
△ 1,091△ 1,393

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents△ 1,500

△ 430
△ 588

△ 694△ 882

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents△ 1,353

7

By Segment
Tire and Wheel segment increased income and fall in profits(百万円)

FY2015FY2016FY2017

ChangeYoY

Brand
FashionTire and
Wheel
Others

Net sales

38,874

41,17535,396△5,77886.0％

Operatingincome

2,979

2,611

692

△1,91926.5％

Operatingmargin

7.7％

6.3％

2.0％

△4.3pt－Net sales

4,232

4,640

4,645

+5

100.1％

Operatingincome

124

155

113

△41

73.1％

Operatingmargin

2.9％

3.3％

2.4％

△0.9pt－Net sales

134

132

137

+4

103.6％

Operatingincome

25

22

26

+3

115.3％

Operatingmargin

19.2％

17.2％

19.2％

+2.0pt－8

１．Overview of Financial Results for the Fiscal YearEnding March 31, 2017

P.02

２．Business status

P.09

３．Plan for the Fiscal Year Ending March 31, 2018

P.29

４．Medium-term Management Plan

P.39

５．Reference Information (Company Profile, etc.)

P.43

9

External Environment(1)Domestic Economy, and Business Sentiment：
The Nikkei Stock Average
Consumption was weak
due to major changes in the economic environment
Net sales
YoY (%)

130

Department store net sales(nationwide)

KOMEHYO net sales(non-consolidated)

Nikkei Stock Average(monthly closing price)

Rise in stock prices

Stock Price(yen)

21,00020,000120

Brexit shock110

19,00018,000100
100
17,00090
16,000807060China shock

15,000Declines in stock prices
Increasing profitability
strategy

FY2017（出所：日本百貨店協会HP）

14,00013,00010External Environment(2)Domestic Economy, and Business Sentiment：
U.S. dollar exchange
Net sales
YoY (%)

130

Department store net sales(nationwide)

Exchange（yen）

KOMEHYO net sales(non-consolidated)

U.S. dollar exchange

140
135

120

130

Weak yen
110

125
120

100
100

115
90

110
105

80

Yen’s appreciation

100

70

Increasing profitability
strategy95

FY201760
15.4 567

8

9

10 11 12 16.1 2

3

4

5

6

7

8

9

10 11 12 17.1 2（出所：日本百貨店協会HP）

90
3

11

External Environment(3)Reuse market size
Online sales increased sharply, while store sales declined
Reuse market size of the wide sense2,059 billion yen
Supplier business・Export

Reuse market size 1.6 trillion yen

Store-based sales

Online sales

Ｃ to Ｃ
4,039
Ｂ to Ｂ
4,079（YoY103.5％）（YoY114.8％）

Ｂ to Ｃ
9,460（YoY96.9％）

Ｂ to Ｃ
2,502（YoY120.7％）(100 millions of yen)

Others 516
Source: The Reuse Business Journal Secondhand Business Data Book 201712

External Environment(4)Reuse market growth rate
The market growth rate, which was on the rise,has been declining in recent years
18,000

Reuse market size(100 millions of yen)&Reuse market growth rate
10.0%

16,00014,000

12%

9.7%

10%

8.0%

12,0008%

7.0%

10,0008,000
6,000

11,2744,000

11,443

12,59013,594

14,916

15,966

16,517
3.5%

1.5%

6%

4%

2%

2,000
0

0%

09

10

11

12

13

14

15

Source: The Reuse Business Journal Secondhand Business Data Book 201713

External Environment(5)Reuse market according to the product
The size of the clothing market expanded
due primarily to free market apps
Market ratio(%)

18

Domestic retailreuse market size(FY2015)(100 million yen)
’15 Brand-name products
2,397

16
14

’14 Brand-name products

12’15 Clothing/accessories
1,504

10

8
6

’15 Game/media

4’14 Clothing/accessories’15 books’15 Camera
558

2’14 Camera
Change (%)

0
-10

-5

0

5

10

15

20

25

Source: The Reuse Business Journal Secondhand Business Data Book 201714

External Environment(5)Ranking in the Secondhand industry
Secondhand sales amount :No.3､ Brand-name products
sales amount:No.1､Clothing/accessories sales amount:No.7
Secondhand sales amount(FY2015)

G

B

KOMEHYO

B

S

Others2.2％

Market size
1,651 billion
yen

Brand-name products sales amount(FY2015)

11.1%
Market size
239 billion yen

KOMEHYO
D
B
OthersClothing/accessories sales amount(FY2015)
G
B
C
T
Market sizeD
150 billion yen
H
KOMEHYO
3.1%
Others15
Source: The Reuse Business Journal Secondhand Business Data Book 2017

Revision of corporate strategies ：Increasing profitability
Revision of strategies in line with changes in the external environment

Extended
growthIncreasing
profitability

16

Store strategy
Concentration of functions into new and existing stores‘17.1～7 Withdrawal
Medium-sized store：shibuya-koendori store
Small-sized store：sakae central park store
Namba walk store
kobe motomachi store
Canal city hakata store’17.2~5

Opening of New Stores (Large-scale)

KOMEHYO
Umeda store

KOMEHYO Shinjyuku
store ANNEX

February16,2017

May19,2017

LINK SMILE：Wing town okazaki store
Laguna gamagori store
USED MARKET：Osu store
urca jewel：Musashi-koyama store

KOMEHYO
Meieki store
May27,201717

Increasing profitability(1)Change of the Gross profit margin
Gross profit margin (4Q)：
Achieved a significant year-on-year improvement

Non-consolidated

Consolidated
（％）

（％）

16.3 Gross profit margin16.3 Gross profit margin17.3 Gross profit margin17.3 Gross profit margin

32

32

30.7
30

30

28.1

28

28.6

29.7

28.5
+1.8pt

28.5

27.5

28

26.9

27.7
26

26.7

26

+1.9pt

27.4

26.8

26.1
24

24

22

22

20

20

1Q

2Q

3Q

4Q

25.6

25.2

1Q

27.5

2Q

3Q

4Q
18

Increasing profitability(2)Products compression
Products: reduced drastically, mainly potentially problematic inventory
such as slow-moving inventoryNon-consolidated

Consolidated(Millions of yen)

16.3 products

12,50012,374

12,37417.3 products

16.3 products(Millions of yen)

17.3 products

12,50012,38312,082
12,00012,00011,618
11,500

11,39011,50011,00011,00011,175
10,997 10,975

10,623
10,48810,500

9,999

10,0009,500

10,50010,21910,000

9,708
9,437

9,500

9,150
9,000

9,000

8,500

8,500

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

19

Increasing profitability(3)Change of SG&A expenses
2H：Reduced the overall SG&A expenses including advertising expenses
and personnel expenses

Non-consolidated

Consolidated(Millions of yen)
16.3 SG&A expenses
2,700

YoY

(Millions of yen)
16.3 SG&A expenses（％）
17.3 SG&A expenses
2,728
108
YoY
2,700

105.9

106
2,600
2,500

2,595
2,488

2,576

2,573

104.3 2,512

2,566
2,542

102.6

104

17.3 SG&A expenses（％）

108

105.5

106

2,600

102

2,500

100

2,400

104

102.0
102

101.0
2,400

98

2,300

2,225

92

2,000

90

3Q

2,135

94

2,100

2Q

2,251

2,200

94.3

1Q

98

2,300

96
2,200

100

4Q

2,100

2,266
2,203
95.1 2,155 2,160

2,101

96
94
92

2,000

90

1Q

2Q

3Q

4Q
20

Initiative(1)Purchase from Individual Customers
Strengthened purchases through LINE De Satei and“Purchase Promotion Campaign”
Amount ofpurchase fromindividual
customers

FY2015(‘14.4-’15.3)

Purchasing
Center

FY2016(‘15.4-’16.3)

FY2017(‘16.4-’17.3)

ChangeYoY

16,596

17,537

15,927△1,60990.8％

Home delivery
Purchasing

841

887

789

△97

89.0％

Total
(Millions of yen)

17,43818,425

16,717△1,707

90.7％【 LINE De Satei 】【Purchase Promotion Campaign】

started evaluating brand-name products inJune 2016

Rolled out a campaign of increasing purchase prices
for brands and items of the month21

Initiative(2) Online Sales
Leveraging omni channel retailing, leading customers from online storesto physical stores and vice versa(Millions of yen)

Net sales
YoY

No. of products
sold YoY

6,147

97.4％

103.3％Net sales

FY2017All online stores【Percentage of online sales by channel】【Roles of smartphone e-commerce sites】
KOMEHYO
website

14.4%
25.7%

Back orders

Omni channel retailing
Initiative1:Enabling delivery to physical stores
Initiative2:installment payment estimation services
Initiative3:enhanced product inquiry services

OthersApps: Obtaining detailed product information
using bar-code readers

59.9%

22

Initiative(3) Member’s Card
Integrated management of customer information,
covering physical and online stores
Card members(FY2017)

No.

YoY

Total members

689,000

114.5%

KOMEHYO apps
App that can be used as a member card of KOMEHYO Co., Ltd.
Outstanding points, purchasing history, selling history,

KOMEHYOand other information can be checked

Member’s card

23

Initiative(4) Talent Development
Buyer development through original curriculums by a dedicated division
Single-item
buyersMultiple-item
buyersAble to evaluate
1 itemAble to evaluate 2
items or more(in operation)

FY ended
March 2017180
persons138
persons318
Persons

YoY Change＋4persons＋28
persons＋32
persons

Total No. ofbuyersTraining program for non-standard products

Promotion of women in the workplace: Holding meetings
between outside directors (female) and female employees

Female MG meeting
Schedule

Three times enforcement (Dec 2016～Jan 2017)

Theme

・Workplace where women feel welcome and comfortable
・Workplace where women do not feel welcome and comfortable
・If I were a manager, I would implement these changes tomake the company a place where everyone wants to continue
working.
・Survey on promotion, etc.

Participant

Female employees above manager level

テキスト
24

Initiative(3)Talented person fixation degree
Staff turnover remained low,improving the stability of the work force
Turnoverrate（％）
30

The No. of employees（Brand-Fashion)

The No. of
employees

Turnover rate

500
25
400
20
300
15

10

8.8
6.8

200

5.8

5.0

3.6

5

0

09.3

10.3

11.3

12.3

13.3

5.2
3.2

14.3

15.3

4.5

16.3

3.9

17.3

100

0

25

Subsidiary(1)KOMEHYO Auction
Sales to secondhand dealers in Japan

Jewelry,
Watches,
Bags

Frequency

Tradevolume(FY2017)

YoY

Monthly
3 daysJPY
15,200
million

84.6％

No. ofmembercompanies

740

Clothing

Monthly
1 day

JPY
310
million

93.4%

State of the auction

26

Subsidiary(2)KOMEHYO HONG KONG
Sales to secondhand dealers abroad
FY2016

Net sales

KOMEHYO
HONG KONG
LIMITEDapprox.
JPY 900 million

ＮＪＫＰ auctions

・ Onsite staff for overseas contacts

・Participation in NJKP auctions
・ Jewelry show
・ Expansion of B2B business
Jewelry show

27

Subsidiary(3) Tire and Wheel
Sale of tires, wheels, and vehicle parts
Net sales(Millions ofyen)

Composition

Tires/wheels

3,954

85.1％

97.3％

Parts (incl. laborcharge)

691

14.9％

120.4％FY2017

Segment total

4,645

100.0％

YoY

100.1％【Original wheel 】↑AXEL VERSU↓AXEL GRELL【Original wheel wearing example】

28

１．Overview of Financial Results for the Fiscal YearEnding March 31, 2017

P.02

２．Business status

P.09

３．Plan for the Fiscal Year Ending March 31, 2018

P.29

４．Medium-term Management Plan

P.39

５．Reference Information (Company Profile, etc.)

P.43

29

FY2018 plan
KOMEHYO Co., Ltd. will celebrate its 70th anniversary in FY2018【 70th Anniversary Bear】
Produced in commemoration of the 70th
anniversary with the aim of continuing to
be a company that is trusted bycustomers
Will appear in various media and at sales
floors as a guide during the anniversary
year

30

FY2018 plan
Increased profit and revenue are forecasted on
both consolidated and non-consolidated bases
Consolidated(Millions of yen)

FY2018
1H planYoY

FY2018 plan

YoY

Net sales

19,400102.3%

42,800106.6%

Operatingincome

80

－

1,230

147.8%

Ordinary income

80

－

1,230

150.8%Net income
attributableto owners of parent

50

－

750

210.8%

Non-consolidated(Millions of yen)

FY2017
1H planYoY

FY2017 plan

YoY

Net sales

17,300102.4%

37,400107.2%

Operatingincome20－840

167.0%

Operatingincome

130

－

950

193.8%Net income

80

－

580

393.6%

31

Growth Scenario
Take the challenge into C2C channels and other areas,
while solidifying core businesses
Reuse market size of the wide sense2,059 billion yen
Supplier business・Export

Reuse market size 1.6 trillion yen

Store-based sales

Online sales
Ｃ to ＣＢ to Ｂ

Ｂ to Ｃ

・Challenge to
CtoC chanel
The autumn of ’17｢App｣ start

・Brand reuse No.1

Ｂ to Ｃ・To the global market
・Cost shrinkage

・Synergy of WEB
and the real store
・Introduction of
new products
Others

Source: The Reuse Business Journal Secondhand Business Data Book 201732

Issues in Core Businesses① Successful opening of large stores・Enhancement of customer management－Acquisition of new customers－Expansion of existing customers
・Introduction of new products
・Enhancement of online backorders② Increasing profitability
・Improvement of gross margin
・Enhancement of inventory controls－Long-term inventories, low-yield inventories
・Enhancement of cost controls
・Enhancement of purchases from individual customers③ Optimization of individual stores
・Increasing profitability of each store
・Enhancement of major products
・Enhancement of trade-in
and purchase guarantees
33New store(1)KOMEHYO Umeda store

34

New store(2)
KOMEHYO Shinjyuku store ANNEX

35

New store(3)KOMEHYO Meieki store

36Renewal store UM Inazawa store
17.4 Establishment of Purchasing Center—Enhancement of purchases from individual customers

37

Shareholder return
Dividend changes
Dividend(yen)40
Fiscal year-end dividendInterim dividend

Payout ratio

92.4

Payout ratio(％)
100

Forecast

90

35

30

30

80
70

25

60

20
50
15

36.2
43.8

29.3

10

30

23.0
5

16.0

13.2

24.8

40

16.6

15.5

19.4
15.0

0

20
10

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
38

１．Overview of Financial Results for the Fiscal YearEnding March 31, 2017

P.02

２．Business status

P.09

３．Plan for the Fiscal Year Ending March 31, 2018

P.29

４．Medium-term Management Plan

P.39

５．Reference Information (Company Profile, etc.)

P.43

39

Medium-term Basic Targets (Consolidated)
Solid recovery of business performance by increasing profitability
Consolidated

FY2018(‘17.4-’18.3)

FY2019FY2020(‘18.4-’19.3)(‘19.4-’20.3)

Store typeNet sales

JPY42.8B

JPY43.9B

JPY45.1B

Operating income

JPY1.23B

JPY1.58B

JPY1.91B

Operating margin

2.9％

3.6％

4.2％

Store openings

４stores２stores２stores

KOMEHYO Sale store(Purchasing Center
juxtaposition)

２stores－－

KOMEHYO
Purchasing Center

２stores２stores２stores40

Net Sales Plan
Generate JPY45 billion and JPY39 billion on a consolidated and nonconsolidated basis respectively in the fiscal year ending March 31, 2020

Consolidated

Non-Consolidated

Net sales (Millions of yen)
45,90342,80043,900Purchases by individual costomers
45,100Net sales (Millions of yen)
40,554

40,13437,40038,40039,60034,891

18,425
16,717FY2016FY2017FY2018FY2019FY2020FY2016FY2017FY2018FY2019FY2020results

results

plan

plan

plan

results

results

plan

plan

plan

41

Profit Plan
Achieve sustainable profit growth by increasing net sales
2,789

2,742

Operating income

Ordinary income

Net income attributable to owners of parent

Consolidated

1,910
1,696

1,580
1,230
831

(Millions of yen)

1,890

1,560

1,230

1,170
970

820

750
347

FY2016 results

FY2017 results

FY2018 plan

FY2019 plan

FY2020 plan
(Millions of yen)

Nonconsolidated

2,426

Operating income

2,400

Ordinary income

Net income

1,480
840
503

1,170

950
580

495

1,490

1,280
790

1,600
990

139

FY2016 results

FY2017 results

FY2018 plan

FY2019 plan

FY2020 plan42

１．Overview of Financial Results for the Fiscal YearEnding March 31, 2017

P.02

２．Business status

P.09

３．Plan for the Fiscal Year Ending March 31, 2018

P.29

４．Medium-term Management Plan

P.39

５．Reference Information (Company Profile, etc.)

P.43

43

Company Profile
Company name

KOMEHYO Co., Ltd.

EstablishedMay 1979

Head Office

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

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

No. of employees

Consolidated: 614, Non-consolidated:509(As of March 2017)

Business activities

Buying and selling used and new products including jewelry, precious
metals, watches, bags, clothing, kimonos, cameras, and musicalinstruments, as well as real estate leasing

Fiscal year-end
Stock

March
Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)
We help customers build affluent lives.
We create a fair, positive, and rewarding workplace.

Management
philosophy

We develop human resources who respond to changes
and continue to challenge themselves.
We aim to achieve continued growth and development
by contributing to society with honesty and trust.

44

Corporate History●Opened KOMEHYO Shibuya Koendori Store, Abeno Store●Opened USED MARKET Osu Store●Joined Keidanren●Established Auto Parts KOMEHYO KK(currently AUTO PARTS JAPAN)●Established KOMEHYO HONG KONG LIMITED●Acquired CRAFT Co., Ltd.
●Established Product Center●Established KOMEHYO Auction●Opened USED MARKET
under a new store format●Opened KOMEHYO Shoten,

2017
2014
2013
2012

2011

a 5-tsubo used clothing store, in Osu, Nagoya

2010
2005

2004

2003
2000
1996

●Opened Ginza Store●Opened LINK SMILE under a new store format●Opened Shinjuku Store, the 2nd largest store after the Nagoya Store●Listed on the second section of the Tokyo and Nagoya stock exchanges

1987

1947

●Listed on JASDAQ●Opened Yurakucho Store (full-scale expansion into Tokyo)
1979●Expanded into Kansai (Shinsaibashi Store)●Opened KOMEHYO●Started online sales
Umeda Store,●Expanded into Tokyo (Purchasing Center Dogenzaka)
Shinjyuku Store ANNEX,●Changed the Japanese spelling of its name
Meieki Store
from 米兵 to コメ兵●Established KOMEHYO Co., Ltd.

45

KOMEHYO Business Model
Main functions of Product Center① Thorough confirmation of product authenticity/quality ② Market price management③ Maintenance ④ Product development speed/cost management⑤ Stable/appropriate supply of products to stores

Purchase/procurement

Store

Home
deliverypurchase

Products
Center・Product management
・Online business・Home delivery purchase

Sale

Store

KOMEHYO
LINK SMILE
USED MARKETWEB

Generalcustomers

Generalcustomers

KOMEHYO
LINK SMILE
USED MARKET

Quality, market
price, distribution

KOMEHYO ONLINE
SHOP(Building area: Approx. 4,100m2)

KOMEHYO

New/secondhand dealers

Secondhand dealers46

Business results for the past decade
Consolidated
net sales(100 millionsof yen)

500
450
400

350
300

Consolidated

KOMEHYO,etc. operating
Consolidated net sales
Opened 5 KOMEHYO stores,2 Craft storesincome (100Openedmillions of yen)
Auto
Parts
KOMEHYO(currently
AUTO
PARTS
JAPAN)
Consolidated operating income
9 storesEstablished KOMEHYO HONG KONG LIMITEDKOMEHYO,etc. 50
Opened 9 stores
KOMEHYO,etc.
Opened 2 stores
New organizational structure Including KOMEHYO,
OpenedClosing eight45
Launched Product Center
Opened 1 Craft store
stores, mainly
4 stores
Opened 4 stores including
Establishedsmall-scale stores
KOMEHYO
40
KOMEHYO
KOMEHYO Auction
OpenedAcquired Craft
2 stores35
KOMEHYO
Opened LINK SMILE KOMEHYO,etc.
Opened30
Opened
1 store4 stores
1st store

250

25

200

The Great EastJapan
Earthquake

Lehman Bros
bankruptcy

150

20

Consumption
tax increase

15

100

10

50

5

0

0

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY201747

Group Status【Sales composition (cumulative FY2017 results)】
Brand Fashion segment
Tire and Wheel segment
Buying and selling products including jewelry,
precious metals, watches, bags, and clothing

Buying and selling tires and wheels as well as
provision of services

Group net sales
KOMEHYO (nonｰconsolidated)
Product sales
0%20%

Jewelry/precious
metals40%

Watches

60%

80%

100%

Bags, clothing

Cameras, musicalinstruments【Subsidiary】
KOMEHYO
auction

KOMEHYO
HONG KONG
LIMITED

CRAFT Co., Ltd.

AUTO PARTSJAPAN

Established
CapitalJune 2012
JPY20 million

June 2013
HKD4 million

April 1980
JPY72 million

May 2013
JPY30 million

Business
activities

Planning, operation,
management, etc. of
auction forsecondhand dealers

Buying and selling
products including
jewelry, precious
metals, watches, andbags outside Japan

Sale of passenger-car
tires, aluminum
wheels, auto
accessories, and parts

Import, sale, andpurchase of auto parts48

Store Type (1)Stores focusing on sale and purchase of jewelry, precious metals,
watches, and bags

27

Stores(as ofMarch
2017)

Large-scaleMid-scale

Small-scale

Nagoya Store、
Shinjuku Store、
Ginza Store、Umeda StoreStore size 300～ tsubo
Main products(sales/purchase):
Jewelry, precious metals,
watches, bags,
storesclothing , etc.

Opening stores in large
major cities
Store size
Approx. 100-200 tsubo
Main products(sales/purchase):
Jewelry, precious metals,
watches, bags,
clothing
storesOpening stores in major
citiesStore size
Approx. 20-30 tsubo
Main products(sale/purchase):
Jewelry, precious metals,
watches, bags, clothing
storesStrengthening
backorder

4

3

13

Purchasing Center
Opening stores in major
citiesMain products(purchase only):
Jewelry, precious metals,
watches, bags, clothing

7stores49

Store Type (2)Stores focusing on sales and purchase of ladies casual clothing ※5Stores(as ofMarch
2017)

Main products (sales/purchase): Ladies casual clothing, bags, accessories
Operating 5 stores in Aichi（※Some stores only as for the sale）

50

Store Type (3)Stores focusing on sales and purchase of clothing in the low price range※

3
stores(as ofMarch
2017)

Main products (sale/purchase): Clothing, bags, accessories
Red tags are attached to products and prices are lowered every two weeks（※Some stores only as for the sale）

51