Earnings Results Briefing for
the Third Quarter of the Fiscal YearEnding March 31, 2019
February 8 2019
KOMEHYO Co., Ltd.
Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges)
Corporate Planning Department IR strategy group TEL:+81-52-249-5366
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 tovarious risks and uncertainties.
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 not place undue reliance upon them.
In addition, this document is not intended to solicit investments. Investors should make investment
decisions at their own discretion.

Economic Trend
While the economic environment remains on a moderate recovery path,
uncertainty is growing in the global economy.
Net sales
YoY (%)

Stock Price（yen）

Department store(fine arts/jewelry/precious metals)
KOMEHYO net sales(non-consolidated)

140

25,000

Nikkei Stock Average(monthly closing price)
24,000130

23,000120

22,00021,000110

20,000100
100

19,00018,00090

17,00080

16,000FY201970

15,000
4

5

678

910

1112 '18.1 2

34

56

78

9

10

1112

(Source：JAPAN DEPARTMENT STORES ASSOCIATION website)1

Rate of progress of the planfor the fiscal year ending March 31, 2019
Consolidated:
Both net sales and each profit type markedincreases of about 75%.
(Millions ofyen)

FY2019plan

FY20199monthsrate ofprogress

Net sales

50,00074.9%

Operatingincome1,900

Ordinary
incomeNet income
attributableto owners ofparent

Consolidated

FY2019plan

FY20199months
rate ofprogress

Net sales

43,000

75.2%

74.2%

Operatingincome

1,500

70.9%

1,900

73.7%

Operatingincome

1,500

71.3%

1,20076.1%

Net income

1,000

71.9%

NonConsolidated(Millions ofyen)2Overview of Income Statement（ Consolidated ）(Millions of yen)

FY20191Q

YoY

FY20192Q

YoY

FY20193Q

YoY

Net sales

11,271114.4％

12,051110.4％

14,133107.5％

37,457110.4％

Gross profit

3,224109.7％

3,096

103.6％

3,979

102.1％

10,300104.8％

Gross profit
margin28.6％△1.3pt25.7％△1.7pt28.2%△1.4pt27.5％△1.5ptSG&A
expenses

2,894

104.6％

2,937

108.8％

3,059

105.7％

8,891

106.3％

Operatingincome329

190.3％

159

55.5％

919

91.9%

1,409

96.4%

Ordinary
income326

176.2％

172

59.8％

901

90.2%

1,400

95.1%

Net income
attributableto owners ofparent211

210.5％

110

56.5％

591

88.6％

913

94.8%

Consolidated

FY20199months

YoY

3Overview of Income Statement（ Non-consolidated ）NonConsolidated

FY20191Q

YoY

FY20192Q

YoY

FY20193Q

YoY

Net sales

9,934

114.5％

10,789109.4％

11,590106.4％

32,315109.8％

Gross
profit2,735

109.5％

2,688

104.3％

3,163

101.9％

8,588

105.0％

Gross
profitmargin27.5％△1.3Pt24.9％△1.3Pt27.3%△1.2Pt26.6％△1.2PtSG&A
expenses

2,445

101.8％

2,542

107.7％

2,536

104.2％

7,524

104.5％

Operatingincome289

296.5％

146

67.2％

627

93.8%

1,063

108.1%

Ordinary
income292

129.1％

161

74.5％

61592.3%

1,070

96.3%

Net
income196

116.6％

107

72.4％

414

91.1％

719

93.1%

(Millions of yen)

FY20199months

YoY4Operating income decrease factor（ Consolidated ）Gross profit margin decreased 1.5 points.
Profit fell mainly due to an increase in SG&A expenses.
OperatingIncome(Millions of yen)

Sales amountGross profit

increase

Margin decrease＋1,025

1.5pt

△549

S,G&A Expenses
increase

△528
1,461

1,409
Selling expenses increase△311
Personal expenses increase△205
Administrative expenses increase△12FY2018 9months

Operating income（△52）

FY2019 9months
5Overview of Balance Sheet
Products increased due to favorable purchasing performance.
Consolidated
Assets29,425
Cash anddeposits

Assets33,122
Cash anddeposits

4,794(Millions of yen)

Liabilities andNet Assets
Liabilities and33,122
Net Assets
Current
29,425Current
Liabilities

3,548

7,651
Products
Products

13,194

11,684

Liabilities

9,041

assets5,185
Non-current
assetsNon-current

liabilities

liabilities

4,592

Net assets

Net assets

18,833

19,488FY2019-3Q

11,741

10,556assets9,013

FY2018-3Q

FY2019-3Q

FY2018-3Q

Current

LiabilitiesLiabilities

7,543

6,051

Non-current

Non-current

liabilities

liabilities

4,175

2,483

assets

5,172

4,420

assetsLiabilities andLiabilities and Net Assets
29,797
Net Assets
26,122Current

Products

Non-current

assets

FY2018-3Q

deposits

Products(Millions of yen)

2,482

Other current

Non-current

10,031

Cash anddeposits

Cash and

Other current

assets9,007

Assets29,797

2,132

Other current

5,102

Assets26,122

Non-current

2,940
Other current

Non-consolidated

Non-current

Net assets

Net assets

17,587

18,077

assets

10,401FY2019-3Q

FY2018-3Q

FY2019-3Q 6By Segment
3Q cumulative total:
Brand Fashion Business significantly increased both income and profit.
(Millions of yen)

FY20191Q

YoY

FY20192Q

YoY

FY20193Q

YoY

FY20199months

BrandFashion
Tire andWheel
Others

Net sales

10,374117.5％

11,195111.7％

12,140109.4％

33,711112.6％

Operatingincome343

218.3％

203

64.6％

685

91.7％

1,232

101.0％

Operatingmargin

3.3％

－1.8％

－5.6％

△1.1pt3.7％△0.4ptNet sales

879

88.1％

837

97.1％

1,972

96.8％

3,688

94.6％

Operatingincome△23－△53－

221

92.6％

145

72.9％

Operatingmargin

△2.7％

－

△6.4％

－

11.2％

△0.5pt3.9％△1.2ptNet sales3182.4％32

86.0％

3494.3％

98

87.4％

Operatingincome1066.9％967.0％

1191.6％31

74.5％

Operatingmargin32.0％－29.2％－35.0％△1.1pt32.1％△5.6pt7

Partial amendment of the Secondhand Articles Dealer Act~ allows temporary stores to purchase goods＜Main points of deregulation＞
1. Revision to units to be licensed：A place of business is permitted to be opened
in other prefectures upon obtaining a license from the prefectural Public Safety
Commission in charge of the location where the main business premises of the relevant
secondhand articles dealer are situated
2. Revision to limitations on business：“Temporary stores” are permitted toreceive goods upon notifying the Public Safety Commission of the date, time and place
beforehand.
【A purchasing caravan】
Komeda Coffee’s main store × KOMEHYO(‘18.10.28～11.11）【A purchasing caravan】
Takashimaya Gate Tower Mall × KOMEHYO(‘19.1.30～2.26）

8

Purchases from individual customers
Due to the success of purchasing centers and events in particular,purchases from individual customers remained strong.
Amount of purchase fromindividual customers

FY2017
９months

FY2018９months

FY2019９months

YoYPurchasing
Center

11,938

13,69015,200111.0％

Home delivery
Purchasing

600

675

728

107.7％

Total(Millions of yen)

12,53914,36615,928110.9％【 A limited-time purchasing event 】
HOSHIGAOKA TERRACE shopping mall × KOMEHYO(‘18.6.13~7.9) → Add schedule(’19.1.9~31)

Takashimaya Gate Tower Mall × KOMEHYO
The first event for purchasing brand products at
Takashimaya Gate Tower Mall was held. (’19.1.30～2.26）

9

New Store(1)The purchasing centerLocation

Opening datePurchasing Center Toyota

Toyota city, Aichi ken‘18.10Purchasing Center
Kyodo nodai-street

Setagaya-ku,Tokyo to‘18.11

Purchasing Center
Mukogaoka-yuen

Kawasaki city,
Kanagawa ken‘18.12

Purchasing Center
HOSHIGAOKA TERRACE

Nagoya city,
Aichi ken

‘19.3(planned)【KOMEHYO Purchasing Center Toyota】

10

New Store(2)The purchasing center New format
Good location in front of the station , relaxing negotiating space【 KOMEHYO Purchasing Center Kyodo-noen-dori】【 KOMEHYO Purchasing Center mukogaokayuen-ekimae】

11New Store(3)Shinjyuku area (Planned to open in April 2019)
Shinjyuku store

Shinjyuku store
ANNEX

Shinjyuku
WATCH store‘19.2

Jewelry, precious metals,
watches, bags,
lady’s clothing,Purchasing Center

men’s bags,men’s clothing,Purchasing Center－‘19.4

Jewelry, precious metals,bags, lady’s clothing,Purchasing Center

Normal sales

ClosedRenewal openX(planned)‘20.2(planned)

New open
Renewal open

※The floor layouts, etc. of Shinjuku Store Annex after reopening following renovation
and a new store are pending

12

Store TypeA total of 35 stores are open across the nation
27 stores

５stores

Large-scale
Nagoya Store，Meieki Store,
Shinjuku Store/ANNEX，Ginza Store，Umeda Store
Sales/Purchase
Jewelry, precious metals,
watches,bags,clothing,etc.

Sales/Purchase ※Ladies casualclothing, bags,
accessories

6storesMid-scale

３stores

Aoyama Store, Shinsaibashi Store,
Kobe Sannomiya Store
storesSales/Purchase

3Sales/Purchase ※clothing in the low
price range, bags,
accessories

Small-scale
Jiyugaoka Store, Omiya-higashi-guchi
Store, etc.
storesSales/Purchase

8

Purchasing Center
Yurakucho, Ikebukuro-nishiguchi,shibuya , etc.
storesPurchase only10（※Some stores only as for the sale）

Total 35 stores (‘18.12)

13

Alliance with department store ,Going to customer's house and purchasing
Expand purchase / sales service even in areas without stores【Holding an alliance event with department store】 【Going to customer's house and purchasing】
USUI department store(Fukushima)
KEIHAN department store(Osaka)
SAGATAMAYA department store (Saga)
HONOKUNI department store (Aichi)
MATSUBISHI department store (Mie)MARUEI department store(Aichi)
MARUHIRO department store(Saitama)
MEITETSU department store(Aichi)
YAGIHASHI department store (Saitama)

East Japan Area
Tokyo, Kanagawa, Saitama,Chiba, Ibaraki
Central Japan Area
Aichi, Gifu, Mie
West Japan Area
Osaka, Kyoto, Hyogo, Hiroshima,Fukuoka

14E-commerce-induced sales
E-commerce-induced sales rate rose as a result of the “Buy Online and Pick up in Store”
promotion, which connects brick-and-mortar stores with e-commerce sites.

(Millions of yen)

FY2017
９months

FY2018９months

FY2019９months

YoY

E-commerce-inducedsales4,544

5,518

6,165

117.7％

E-commerce-inducedsales rate

17.5％

18.8％

19.1%

－

【 Percentage of online sales by channel (FY2019 9months)】 【Online sales trend by channel】
KOMEHYO website

Back orders

KOMEHYO website

OthersBack orders

Others

6,000

16.1%

20.4%
4,000

2,000

2,737

3,455

3,912

63.5%
015
FY2017 9months FY2018 9months FY2019 9months

Group structure (‘18.12)
KOMEHYO

KOMEHYO
AuctionB2Bオークション事業
BtoB
Auction business

KOMEHYOSHANGHAILIMITED(CHINA)
Product supplyto Beijing

KOMEHYO
HONG
KONG
LIMITED

EveCorporation

Operation of sales
store ’KOMEHYO’‘LINK SMILE’’’USED MARKET

Shellman

Craft

AutoParts
Japan

Tire･ wheelbusiness
Operation of sales
store ’Craft’

Tire･ wheelbusiness
Operation of sales
store ’U-ICHIBAN’

BtoB
Global businesssupervision

Apparel business,
Sneakers business,
Shoes care business

Antique watch,
Antique jewelrybusiness

BEIJINGHUAXIA
KOMEHYO
LIMITEDSAHA
KOMEHYOCOMPANY
LIMITEDNJKP(CHINA)【JV】
Operation of sales
store ’LuxStory’(THAI)【JV】(HONG KONG)【JV】
Diamond auction

16Group company(1)KOMEHYO Auction
Auction for domestic corporations, distribution total expansion trend
distribution total(Millions of yen)

17,500FY2019 9months

YoY

128.7％【Transition of auction distribution amountfor domestic corporations】(Millions of yen)

17,500No. of member
companies

925※95 companies
increased this term

【Auctions are held twice a month】
Since June 2018, we have been holding jewelry,
watch and bag auctions twice a month to strengthen
profitability

13,60011,900FY2017 9M

FY2018 9M

FY2019 9M

17Group company(2)-1

KOMEHYO HONG KONG
Develop Reused business for corporations in each country centering on AsiaFY2019 9months【HONG KONG WATCH SHOW】

Net sales

YoY

1,171

121.7％【 Sales negotiations at a Hong Kong office 】

18

Group company(2)-2Beijing store Lux Story【LuxStory Beijing Square store】In September 2018, opening the first overseas store in thecenter of Beijing where old and new culture was mixed

19

Group company(3)-1 Eve Corporation

Aim for synergy with KOMEHYO Apparel BusinessBusiness activities
Wholesale and retail of imported apparel,bags,and accessories;
Operation of mail-order sites “Mike MUSEUM”
Purchase and sales of shoes, etc.
Operation of mail-order sites “WORM TOKYO”
Operation of the store of “WORM TOKYO”
Sales of shoe-care goods, shoe maintenance service, etc.
Operation of mail-order site “SHOES MASTER”※Eve Corporation Co., Ltd. and Ark marketing japan co., ltd . merged management on November 1, 2018 throughan absorption-type merger into Eve Corporation Co., Ltd.

20

Group company(3)-2

Store WORM TOKYO【WORM TOKYO】In August 2018, moved to Harajuku-Jingumae area and expanded. Rare sneakers etc.
are displayed at more than 1000 feet at all times.

21

Group company(4) Shellman
Integrated into one group, in November 2018,with the aim of further specializing in watches and jewelry.
Business activities
・Import and sale of antique watches, jewelry, and others
・Development, sale, and others of original watches
・Operation of sales store ’Shellman’
Ginza store , Aoyama store , Sinjyuku-isetan-honkan store ,Ginza-mitsukoshi store , Sinjyuku-isetan-men’s kan store ,Ginza-BERNEYS NEW YORK store , Roppongi BERNEYS NEW YORK store【Antique watch】【 Antique jewelry 】【 Original watch 】

22

Group company(5)Craft、Auto Parts Japan
Opened reuse specialty shop “U-ICHIBAN”
Company nameBusiness activities

CRAFT Co., Ltd.

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

AUTO PARTS
JAPAN Co., Ltd.

Import, sale, and purchase of auto parts
Operation of sales store’U-ICHIBAN’【EURO STYLE Craft】【URBAN OFF CRAFT】

Enhance customization ofeuro compact car

Proposing customizationof Urban SUV【U-ICHIBAN】
Reuse specialty shop “U-ICHIBAN”

23