Earnings Results Briefing for
the Third Quarter of the Fiscal YearEnding March 31, 2016
KOMEHYO Co., Ltd.

Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges)

The IR strategy department

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, including statements concerning thecurrent plans, forecasts, strategies, and beliefs of KOMEHYO Co., Ltd., are forward-looking statements
and subject to various risks and uncertainties.
These statements were prepared based on the assumptions of the management of KOMEHYO Co.,
Ltd. based on information currently available.
The actual results may differ significantly from the forecasts due to a variety of factors, andtherefore investors should not place undue reliance on them.
In addition, this document is not intended to solicit investment. Investors must make investment
decisions at their own discretion.

Overview of Income Statement
９months total：increased revenue decreased profits on a consolidated
FY2016
1Q(15.4-6)

YoY

FY20162Q(15.7-9)

YoY

Net sales

10,374115.5％10,562

100.4％

12,982 105.3％

33,918 106.6％

Gross profit

3,181

114.3％

2,967

94.5％

3,710

93.4％

9,860

99.6％

Gross profit
margin30.7%△0.3pt

28.1％

△1.8Ｐ

28.6％

△3.6pt29.1％△2.0ptSG&A
expenses

2,488

99.7％

2,512

100.8％

2,728 105.0％

Operatingincome692

241.4％

455

70.4％

982

71.5％

2,130

92.3％

Ordinary
income695

241.9％

449

67.3％

974

70.8％

2,118

90.9％

Net income
attributableto owners ofparent

387

250.3％

312

70.7％

656

73.1％

1,356

90.8％

Consolidated(Millions of yen)

FY2016
3Q(15.10-12)

YoY

FY2016９months(15.4-12)

YoY

7,729 101.9％

1

Overview of Income Statement
９months total：Owing to Gross profit margin dropped,
decreased profits on a non-consolidated
Nonconsolidated(Millions of yen)

FY2016
1Q(15.4-6)

YoY

FY20162Q(15.7-9)

YoY

FY2016
3Q(15.10-12)

YoY

FY2016９months(15.4-12)

YoY

Net sales

9,264

113.8％

9,555

98.8％

10,910 106.1％

29,730 105.8％

Gross profit

2,754

112.2％

2,571

92.0％

2,993

92.4％

8,31998.0％

Gross profit
margin29.7%△0.5pt

26.9％

△2.0Ｐ

27.4％

△4.1pt28.0％△2.2ptSG&A
expenses

2,101

97.3％

2,135

98.2％

2,266 104.8％

Operatingincome653

219.8％

435

70.2％

727

67.5％

1,815

91.0％

Ordinary
income668

217.3％

424

66.3％

719

66.8％

1,812

89.5％

Net income

376

220.4％

292

69.3％

492

69.0％

1,162

88.9％

6,503 100.1％

2

By Segment
９months total：
Tire and Wheel segment increased in revenue and profits(Millionsof yen)

FY2016
1Q(15.4-6)

FY20162Q(15.7-9)

YoY

FY20163Q

YoY(15.10-12)

FY2016
YoY

YoY

Brand
FashionTire andWheel

Net sales

9,421 114.8％

9,716

99.6%

Operatingincome686 213.5％48070.7％

774

4.9%

△2.1pt

7.0％ △3.9pt

6.4％ △1.1pt

1,901

99.3％

3,655 107.8％

201

86.5％

169 114.6％

Operatingmargin7.3％+3.4pt11,060 106.4％

９months(15.4-12)

68.2％

30,197 106.5％
1,942

90.8％

Others

Net sales

930 125.2％

824 112.3％

Operatingincome△1－△30－Operatingmargin－－－－10.6％ △1.6pt

4.7％+0.3ptNet sales

3393.3％3290.3％32 101.8％

9894.8％Operatingincome

786.3％

660.8％

5 134.4％

1884.1％

Operatingmargin21.4％△1.7pt18.3％△8.9pt* The total above includes other adjustments.

17.8％+4.3pt

19.2％ △2.4pt
3External Environment
Economic Trend
Owing to the sudden slowdown of the Chinese economy,
The prospects of Japanese economy are unpredictable
Net sales
YoY (%)

Department store net sales(nationwide)

KOMEHYO net sales(non-consolidated)

Nikkei Stock Average(monthly closing price)

160150Last-minute demand
before theconsumption tax hike

140

20,000

Achieved the level on parwith last-minute demandin the previous term

130

Stock price(yen)18,00016,000120
110

14,000100
100
12,000

90
80
70
60

Reactionary drop following
last-minute demand before
the tax hike

10,000（Source：JAPAN DEPARTMENT STORESASSOCIATION website）

FY2016 ９months

8,000

4Initiative (1)Opening of New StoresOpened ６ stores in FY2016 9months;
planning to open 3 stores in FY2016 4Q and ２ stores in FY2017

FY2016 1H store open
KOMEHYO
Sakae Central Park Store

KOMEHYO
Kobe Motomachi Store

April 29, 2015 (66m2)

May 25, 2015 (220m2)

KOMEHYO
Purchasing Center
Ikebukuro Nishiguchi
July 17, 2015 (102m2)

KOMEHYO
Purchasing Center
Tachikawa Kitaguchi
September 18, 2015 (167m2)

FY2016 3Q store open

FY2016 4Q store open (planned)

October 1, 2015 (138m2)

March 2016 (388㎡)

KOMEHYO
Jiyugaoka Storeurca jewel by KOMEHYO
Musashikoyama Store

November 27,2015 (84m2)

March 2016 (133㎡)

KOMEHYO
Canal City Hakata StoreLINK SMILE by KOMEHYO
Kasugaikashihara Store

KOMEHYO Canal City Hakata StoreFY2017 store open (planned)

KOMEHYO
Purchasing CenterShinjyuku Minamiguchi
May 2016 (117m2)

KOMEHYO
Umeda Store

KOMEHYO
Tenjin StoreMarch 2016 (193m2)

February 2017 (1,318㎡)
5

Store Map (as of December 2015）【Chubu】
Nagoya Store(Main Building, Kimono Building,Camera/Musical Instrument Building,
Purchasing Center Osu)
Meieki Sun Road Store
Sakae Central Park Store
Toyota StoreStores to be opened in FY2016 4Q (January 2016–)
LINK SMILE by KOMEHYO Kasugaikashihara Store in March 2016
urca jewel by KOMEHYO Musashikoyama Store in March 2016
Tenjin Store in March 2016
Stores to be opened in FY2017
Purchasing Center Shinjyu Minamiguchi in May 2016
Umeda Store in February 2017

【West japan】
Shinsaibashi Store
Whity Umeda Store
Namba Walk Store
Abeno Store
Kyoto Shinkyogoku Store
Kobe Sannomiya Store
Kobe Motomachi Store
Hiroshima-Hondori Store
Canal City Hakata Store【East japan】
Shinjuku Store
Ginza Store
Aoyama Store
Shibuya Koendori Store
Jiyugaoka Store
Machida Store
Omiya-Higashiguchi Store
Kashiwa-Higashiguchi Store
Purchasing Center Shibuya
Purchasing Center Harajuku
Purchasing Center Kichijoji
Purchasing Center Yurakucho
Purchasing Center Ikebukuro Nishiguchi

KOMEHYO:28 stores
LINK SMILE: 7 stores (7 in Aichi)
USED MARKET : 4 stores (3 in Aichi, 1 in Nagano)

Purchasing Center Tachikawa Kitaguchi
Purchasing Center Yokohama Nishiguchi

6Initiative (2)Purchase from Individual Customers
Purchases from individual customers remained solid
Amount ofpurchasefromindividualcustomers

FY2016
1Q(15.4-6)

FY20162Q(15.7-9)

YoY

YoY

FY2016
3Q(15.10-12)

YoY

FY2016９months(15.4-12)

YoY

Purchasing
Center4,690 116.7％

4,206 101.2％

4,781 110.8％

13,677 109.5％

Homedelivery
Purchasing

227 123.6％

212 117.1％

259 102.0％

699 112.8％

Total(Millions ofyen)

4,917 117.0％

4,418 101.9％

5,041 110.3％

14,377 109.7％

KOMEHYO Purchasing Center Osu

Home delivery purchase website

7Initiative (3)Inbound Tourism Consumption
The degree differs according to countries
FY2016 ９months(15.4-12)

Inbound tourism
consumption

Net sales(Millions ofyen)Composition

YoY

By country

4,644－

109.2%

China

2,330

50.2%

122.2%

Philippines

483

10.4%

174.3%

Thailand

430

9.3%

65.2%

The UnitedStates214

4.6％

146.0％South Korea

207

4.5％

115.1％

Taiwan

172

3.7％

85.2％

Indonesia

144

3.1％

112.1％Net sales composition by product(FY2016 ９months)

Clothing
3.7%

Other
0.9%

Brandbags
20.3%
Watches46.2%

Jewelry/
preciousmetals
28.9%

8

Initiative (4)Online SalesEntered in cross-border e-commerce by opening an eBay (overseas mall) store
in August 2015
FY2016 ９months(15.4-12)

Net sales

Net sales
YoY

No. of products
sold YoY

4,803

106.9％

142.2％(Millions of yen)

All online stores

Percentage of online sales bychannel
KOMEHYO12.0%

websiteBack orders

29.5%

58.5%

Other

KOMEHYO website
Order/settlement via komehyo.jp
Back orders(1) Customers specify a store to do backorders online(2) Store staff suggest/back order products
to suit customer needs
Other
Order/payment via other companies’
websites, such as Rakuten Ichiba, Yahoo!,Amazon, and eBay stores

9Initiative (5)Tire and Wheel
Sale of tires, wheels, and vehicle parts
FY2016９months

Net sales

Composition

YoY

Tires/wheels

3,058

83.7％

106.8％

Parts(incl. laborcharge)

531

14.5％

126.8％

Others

65

1.8％

61.1％

3,655

100.0％

107.8％(15.4-12)

Segment total(Millions of yen)【Strengthen of sales】
・Summer tires
・Suspension
・Luxury wheel【 Strengthen of SNS activities】
・Twitter, Facebook, LINE

Craft website homepage

Craft Nakagawa Store10FY2016 year end
expectation and Progress
Consolidated(Millions of yen)

FY2016 Plan
(15.4-16.3)

FY2016 9months
results (15.4-12)

Progress rate

Net sales

45,70033,918

74.2%

Operating income

3,170

2,13067.2%

Ordinary income

3,170

2,11866.8%

Net income attributableto owners of parent

2,043

1,356

66.4%

Non-consolidated(Millions of yen)

FY2016 Plan
(15.4-16.3)

FY2016 9months
results (15.4-12)

Progress rate

Net sales

40,20029,73074.0%

Operating income

2,780

1,81565.3%

Ordinary income

2,790

1,81265.0%

Net income

1,790

1,16264.9%
11