Earnings Results Briefing
for the First Six Monthsof the Fiscal Year Ending
March 31, 2020
November 11,2019
KOMEHYO Co., Ltd.
Securities code: 2780
(Second Section, Tokyo and Nagoya Stock Exchanges)
Corporate Planning Department IR strategy group
Phone +81-52-249-5366

FY 2020 2Q Financial Summary【Performance Highlights】
Net Sales(Consolidated)
YoY
Amount of purchase fromindividual customers

118.9％

125.2%YoY【Business Topics】
Brand・Fashion businessOpening ofwatch
specialty store(Shinjuku
WATCH store)

Opening offourpurchasecenters

Net Sales(Non-consolidated)
YoY

120.0％※Full-year consolidated
sales plan 110.7%
YoY

Tire and Wheel business
Expansionof sales tocorporate
customers

Opening of five
Reuse specialty
shops, “U-ICHIBAN”(including convertedstores)

Acquired
Four by fourengineering
service Co.,Ltd1

Economic Trend
The economic environment remains on a moderate recovery path
Net sales
YoY (%)

Stock Price（yen）

Department store(fine arts/jewelry/precious metals)
KOMEHYO net sales(non-consolidated)
Nikkei Stock Average(monthly closing price)180

24,000130

19,000100

FY202080'18.456789101112'19.1234567

14,00089(Source：JAPAN DEPARTMENT STORES)ASSOCIATION website)2

Overview of Income Statement（ Consolidated ）(Millions of yen)

FY20201Q

YoY

FY20202Q

YoY

FY2020
1H

YoY

Planratio

Net sales

12,439110.4%

15,288126.9％

27,728118.9％

102.7%

Gross profit

3,421

106.1%

3,672

118.6％

7,093

112.2％－

Gross profit
margin27.5％△1.1pt24.0％△1.7pt25.6％△1.5pt－SG&A
expenses

3,328

115.0%

3,447

117.4%

6,775

116.2％－

Operatingincome9228.1%225140.8％

317

64.9％

69.4%

Ordinary
income8125.1%

209

121.7％

291

58.5％

68.3%

Net income
attributableto owners ofparent

49

23.6%

136

123.4％

185

57.9％

76.5%

3

Overview of Income Statement（ Non-Consolidated ）(Millions of yen)

FY20201Q

YoY

FY20202Q

YoY

FY2020
1H

YoY

Planratio

Net sales

11,105111.8%

13,755

127.5％

24,861120.0％

104.5％

Gross profit

2,928

107.1%

3,103

115.4％

6,032

111.2％－

Gross profit
margin26.4％△1.1pt22.6％△2.3pt24.3％△1.9pt－SG&A
expenses2,791

114.1%

2,886

113.5%

5,677

113.8％－Operating
income

137

47.4%

217

148.5％

355

81.3％

90.8％

Ordinary
income

227

77.8%

209

129.3％

437

96.1％

89.4％

Net income

169

86.1%

148

137.5％

317

104.3％

89.5％

4

Sales by sales channel(Non-Consolidated)

Corporate sales made progress
Retail/Corporate sales(Millions of yen)
RetailCorporate sales

Net sales
20,724

OthersCorporate sales
YoY145％Net sales
24,861
Composition ratio

43.0％

Composition ratio

35.6％

64.1％

FY2019 1H

Retail
YoY106％56.8％

FY2020 1H5

Gross Merchandise Value（ Consolidated ）Increase in purchases from individuals. The expansion thereof is expected due to K-Brand OFF.

Gross Merchandise Value(Millions of yen)
1H

2H

K-BRAND OFF

32,962

31,92636,420FY2019FY2020(forcast)

FY2021(forcast)

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

6Operating income decrease factor（ Consolidated ）Profit decrease due to increases in expenses, such as rents and personnel expenses
1,800

Gross profit Margin

1,600

decrease

1,400

△421

1,200Sales amount increase

1,000＋1,193

8006004004892000

FY2019 1H

A decline of 1.5 pts.
primarily due tohandling morebullion, triggered bya surge in the goldmarket,
and the rising ratioof corporate sales tototal sales(7.4pts)

Operating income（△171）

Increase in administrative expenses, such as rents
associated with new openings.
△398
Increase in personnel expenses due to businessexpansion△310
Increase in selling expenses, such as PR/
advertising costs, due to sales expansion △235

S,G&A Expenses
increase△944317
FY2020 1H

7Overview of Balance Sheet(Consolidated) Increase in total assets primarily
due to an increase in the number of group companies
Consolidated
Assets29,139Cash andAssets
32,542
Cash anddeposits 5,738

Liabilities andNet Assets
Liabilities and32,542
Net Assets
Current
29,139Liabilities
Current Liabilities

deposits 4,144

8,849

Products

Non-current

12,876

liabilities 2,881

Assets26,400Cash anddeposits 2,804

7,162

Products

Non-consolidated
Assets27,500Cash anddeposits 3,024

Non-current
liabilities 3,909

12,172

Products
10,844

Liabilities andNet Assets
26,400(Millions of yen)Liabilities andNet Assets
27,500Current

Current Liabilities

Liabilities

5,816

5,251
Non-current

Products

Non-current

10,573

liabilities 2,736

liabilities 3,776

Other
Other current
assets 3,551

Other current
assets 4,305

Net assets

Net assets

19,094

19,783

Other current

current

assets 3,592

assets 3,706
Non-current

Non-current

Non-current

Non-current

assets 9,272

assets 9,621

assets 9,158

FY2019 1H

FY2020 1H

FY2019 1H

FY2020 1H

FY2019 1H

Net assets

Net assets

17,846

18,473

FY2019 1H

FY2020 1H

assets
10,196FY2020 1H8

Statement of Cash Flows
Cash flows from operating activities were negative due mainly to an increase in Products
Consolidated(Millions of yen)

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Cash and cash equivalents

4,327

1,533

4,769

1,715

6,216

4,964
6,086

1,748

1,447

2,113
1,213273

△ 845

△ 248

FY2018 1H△ 700 △ 107

FY2018△ 564△ 1,011
FY2019 1H△ 1,332△ 2,239
FY2019FY2020 1H9

By SegmentBrandFashion
Tire andWheelOthers(Millions of yen)

FY20201Q

YoY

FY20202Q

YoY

FY2020
1H

YoY

Net sales

11,701112.8％

14,443129.0％

26,144121.2％

Operatingincome

184

53.8％

266

131.0％

451

82.6％

Operatingmargin

1.6％

－

1.8％

－

1.7％

－

Net sales

716

81.5％

824

98.5％

1,541

89.8％

Operatingincome

△95－

△43－

△139－

Operatingmargin△13.4％

－

△5.3％

－

△9.0％

－

Net sales

2477.5％2371.2％4774.3％Operatingincome337.6％

119.0％

528.6％

Operatingmargin

15.5％

－

7.8％

－

11.8％

－

10Brand・Fashion

purchase

The amount of purchases from individual customers ison the rise due to various measures to promote purchases.
Amount ofpurchase fromindividualcustomers

FY20201Q

YoY

FY20202Q

YoY

FY2020
1H

YoYPurchasing
Center

5,818

117.6%

6,213

135.9％

12,032126.4％

Home delivery
Purchasing

260

104.7％

246

102.1％

506

103.4％

Total

6,078

116.9%

6,460

134.2%

12,539125.2%(Millions of yen)

1. KAITORI GO
A special unit was launched to focus on tieups and events with department stores andother companies.
2. Open stores specializing in purchasing【 Purchase event at YURAKUCHO-MARUI】（Sales events for sustainable jewelry ｢mi luna｣ are11
also held at the same time.)Brand・Fashion

EventsPartial amendment of the Secondhand Articles Dealer Act,we went to "Customer's usual location" to make reuse more accessible.
Main Event Partners

periodMARUHIRO department store
Kawagoe store

7.17～7.30

TAKASHIMAYA Gate Tower Mall

7.17～8.19

MIYAZAKI-YAMAGATAYA

8.19~8.23
9.4~9.16

YURAKUCHO-MARUI

8.27～9.13

GOLFTEC by GDO ROPPONGI

9.12～9.16

HONOKUNI department store

9.26～10.01

HIROSHIMA-MITSUKOSHI

10.01~10.31【 Purchase event at GOLFTEC by GDO ROPPONGI】

12Brand・Fashion

New stores

Opening of large-scale watch specialty store* and four purchase stores in the Kanto area
【KOMEHYO Shinjyuku WATCH store ‘19.4】【Purchase center
Shinkoiwa-minamiguchi ‘19.5】【Purchase center
Gakugeidaigaku-nishiguchi ‘19.7】※ Relocation of the watch section from the Shinjuku
store, and conversion of the newly vacant space to ajewelry section.

【 Purchase center
Kokubunji-minamiguchi ‘19.9】【 Purchase center
Kamata-nishiguchi ‘19.9】

13

Store Type （ Non-Consolidated ）31 stores
Large-scale
Nagoya Store，Meieki Store,
Ginza Store，Umeda Store,Shinjuku store (including Shinjuku
ANNEX and Shinjuku WATCH store)
Sales/Purchase
Jewelry, precious metals,storeswatches,bags,clothing,etc.

5 stores
Sale and purchase *Ladies casual clothing,Bags, small items, etc.

5Mid-scale

Opening stores in large major cities
Sales/Purchase3stores

Small-scale
Opening stores in major cities
Sales/Purchase8stores

Purchasing Center
Opening stores in major cities

Purchase only

15stores3 stores
Sale and purchase *Clothing at a lower price point
Bags, small items, etc.
*Some stores only sell

Total 39 stores (‘19.9)
14E-commerce （ Non-Consolidated ）Increase in the number of products
sold by strengthening the handling of clothing and others(Millions of yen)

FY2018 1H

FY2019 1H

FY2020 1H

Net sales
YoY

No. of products
sold YoY

E-commerce-induced
sales

3,367

3,957

4,103

103.7％

110.1％

E-commerce-induced
sales rate(※1)

26.5%

29.8％

29.1％

－－

【 Percentage of online sales by channel (FY2020 1H)】 (Millions of yen)【Online sales trend by channel】

16.4%

21.2%

62.4%

KOMEHYO

5,000

website

4,000

Back orders

3,000※22,000

Others

KOMEHYO website

Back orders

Others1,0000※1 Ratio of E-commerce induced sales to the retail sales amount※2 Customers specify a store to do back orders online

FY2018 1H

FY2019 1H

FY2020 1H

15

Upcoming measures：
Nagoya main store renewal
Conversion of camera/musical instrument stores to fashion stores【 Relocation of the camera/musical instrument
Section to the main store ‘19.10】【KOMEHYO FASHION NAGOYA ‘19.11】

16

Upcoming measures：
Overseas businessFirst overseas opening under the name of “KOMEHYO”
in Bangkok, Thailand,in November 2019
【KOMEHYO ZEN＠CENTRAL WORLD (Bangkok) 】【 Purchase event】

17

Upcoming measures：
Shinjuku store relocation completed
Shift to a three-store system in the Shinjuku area in April 2020
【KOMEHYO Shinjyuku store FASHION Building ’20.4Scheduled】【Image of FASHION building】(’20.3退店予定)

18

KOMEHYO Auction
Auction Trade volume for domestic corporations is expanding trend
Trade volume(Millions of yen)

FY2020 1H

13,138

YoY

110.6％

No. of member companies992(91 companies increased YoY)

【 Transition of auction Trade volume for domestic corporations 】(Millions of yen)

11,87613,1388,981

FY2018 1H

FY2019 1H

FY2020 1H

19

K - BRAND OFF
Adoption of the know-how regarding overseas expansion and human resources【KOMEHYO GROUP】【BRAND OFF GROUP】
・17 directly managed stores
・FC 5 stores・Auction 2 venues(Kanazawa / Ginza)
・151 people
・Overseas / tax-free sales

THAI FC 1StoreBEIJING JV 1Store・39 directly managed stores(KOMEHYO, etc.)

TAIWAN 3Stores

・1 joint venture・Auction 1 venue(Nagoya)・530 people (non-consolidated)
・Omnichannel

HONGKONG
7Stores
FC 1store（As of the end of September 2019）20

Tire and Wheel

New StoresOpened reuse specialty store “U-ICHIBAN”【Omiya Baipasu store ‘19.4
Convert from craft】【Yokkaichi store ‘19.5
Convert from craft 】【Toyohashi store ‘19.5
Convert from craft 】【Okazaki store‘19.6 New store】【Kagamigahara store‘19.8 New store】

21

Tire and Wheel

Store Type【New Tire and Wheel】【Reuse Tire and Wheel】

７ Stores

10 Stores

４Stores※
１Store※※Located in a craft store

22

Group structure
KOMEHYOKOMEHYO
HONG
KONG
LIMITED

EveCorporation

Shellman

BtoB
Global businesssupervision

Apparel business,
Sneakers business,
Shoes care business

Antique watch,
Antique jewelrybusiness

NJKP

KOMEHYOSHANGHAILIMITED

BEIJINGHUAXIA
KOMEHYO
LIMITED(HONG KONG)【JV】
Diamond auction(CHINA)
Product supply
to Beijing

KOMEHYO
AuctionB2Bオークション事業

BtoB
Auction business

K-BRAND
OFF

Brand Reuse Business

Craft

AUTO
Parts
Japan

Four by fourEngineering
Services

Brand Reuse Business Tire･ wheel business Tire･ wheel business Tire・Wheel business
Operation of sales
Planning of automobile
BtoB Auction business Operation of sales
store ’U-ICHIBAN’
Parts, R&D ,store ’Craft’
manufacturing, etc.

SAHA
KOMEHYOCOMPANY
LIMITED(CHINA)(THAI)【JV】【JV】
Operation of sales store
Operation of sales’ KOMEHYO ZEN@CENTRAL WORLD’
store ’LuxStory’

Brand・Fashion business
Tire and Wheel business(Schedule as of the end of December 2019)23

Planned progress for the FY 2020
(consolidated)
Net sales have remained steady(Millions of yen)

１H plan

FY2020 1H

Plan ratio

FY2020 plan

YoY

Net sales

27,00027,728102.7%

56,400110.7%

Operatingincome458

317

69.4%

1,329

71.4%

Ordinary
income

427

291

68.3%

1,261

69.0%

Net income
attributableto owners ofparent

243

185

76.5%

727

72.0%

※Profits in the first half and full-year plans are expected to decline mainly due to rents arising from the opening of“KOMEHYO Shinjuku WATCH store” and an increase in personnel and other costs associated with business expansion.

24

Shareholder return
Dividend changes
Dividends (Yen)

40
3530

Dividend payout ratio (％)

100

Fiscal year-end dividendInterim dividend
Payout ratio(Schedule)

90801616702560205048.21510403034.720516160FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

10025

Corporate ProfileCompany 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. ofemployees

Non-Consolidated: 530 (As of September 2019)

Business
activities

Buying and selling used and new products including jewelry, precious metals, watches,bags, clothing, kimonos, cameras, and musical instruments, as well as real estateleasing

Fiscal year-end
StockMarch
Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)

26

Corporate History●Opened Umeda Store,Shinjyuku Store ANNEX,Meieki Store●Acquired Eve Corporation Co.,Ltd.
●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 KOMEHYO Shoten,a 5-tsubo used clothing store, in Osu, Nagoya

19791987

1996

2000

2003

2004

200520112012

201320172018

2019●Opened Ginza Store●Opened Shinjuku Store,the 2nd largest store after the Nagoya Store●Listed on the second section of the Tokyo
and Nagoya stock exchanges●Listed on JASDAQ●Opened Yurakucho Store●Opened Purchasing Center 4 Stores(full-scale expansion into Tokyo) ●Acquired Shellman Co.,Ltd.
●Expanded into Kansai●Established SAHA KOMEHYO COMPANY LIMITED(Shinsaibashi Store)●First Overseas Store Opened in Beijing, China●Started online sales●Expanded into Tokyo●Opened Shinjyuku WATCH store,(Purchasing Center Dogenzaka)
Purchasing Center 4 Stores●Changed the Japanese spelling of its name●Acquired Four by four engineering service Co.,Ltdfrom 米兵 to コメ兵●Established KOMEHYO Co., Ltd.

27