Earnings Results
Briefing for the First Quarterof the Fiscal Year Ending
March 31, 2020
August 13,2019
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 1Q Financial Summary【Performance Highlights】
Net Sales (Consolidated)
YoY110.4％
Amount of purchase from individual customers(Non-consolidated)
YoY116.9％※ reference

Full-year consolidated sales plan

【Business Topics】
Brand・Fashion business
Opened‘’Shinjyuku
WATCH store‘’Openedpurchasecenter

Both are making
good progress

YoY110.7％

Tire and Wheel businessHolding apurchase
eventsOpenedReuse specialty
shop“U-ICHIBAN”

Acquired
Four by four
engineering
service Co.,Ltd1

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

Department store(fine arts/jewelry/precious metals)

140

Nikkei Stock Average(monthly closing price)

Stock Price（yen）

KOMEHYO net sales(non-consolidated)

24,000130
120
19,000

110
100
100

FY2020 1Q

90'18.456789101112'19.1

2

3

4

514,000
6(Source：JAPAN DEPARTMENT STORES ASSOCIATION website)2

Overview of Income Statement
Consolidated

FY2018 1Q

FY2019 1Q

FY2020 1Q

ChangeYoY

Net sales

9,849

11,271

12,439＋1,167110.4％

Gross profit

2,940

3,224

3,421＋196

106.1％

Gross profit
margin

29.9%

28.6％

27.5％

△1.1pt－SG&A
expenses

2,767

2,894

3,328＋434

115.0％

Operatingincome

173

32992

△237

28.1％

Ordinary
income18532681△24425.1％

Net income
attributableto owners of parent

10021149△16123.6％(Millions of yen)3

Operating income increase anddecrease factor（ Consolidated ）Decrease in operating income
due to increased expenses such as Rent and Personal expenses
700(Millions of yen)

600

Sales amount500

increase
＋333

400
300

Gross profit
margindecreased(△1.1pt) △137329

200
100

Administrative expenses△189
Personal expenses △146
Selling expenses△98

S,G&A Expenses
Increase△434920

FY2019 1Q

Operating income（△237）

FY2020 1Q

4

Overview of Balance Sheet(Consolidated)
Increase in Total assets by opening new stores and subsidiary Shellman
Total assets
27,931(Millions of yen)

Cash and deposits

2,816
Products12,434Other current assets
3,405

Total assets
31,916

Liabilities and Net Assets
27,931

Cash and deposits
4,663

Current Liabilities
6,278

Products

Non-current liabilities

13,2682,660

Liabilities and Net Assets
31,916
Current Liabilities
8,191
Non-current liabilities
4,061

Other current assets
3,743

Non-current assets

Non-current assets

9,275

10,241FY2019 1Q

FY2020 1Q

Net assets

Net assets

18,993

19,663

FY2019 1Q

FY2020 1Q

5

By Segment
FY2018 1Q

FY2019 1Q

FY2020 1Q

ChangeYoY

Net sales

8,827

10,374

11,701

1,326112.8％

Operatingincome157343

184△15853.8％

Operatingmargin

1.8％

3.3％

1.6％

△1.7Pt－Net sales

997879716△16281.5％

Operatingincome1△23△95△72－

Operatingmargin

0.1%

△2.7％

△13.4％△10.7pt－

Net sales

383124△777.5％

Operatingincome15103△637.6％

Operatingmargin

39.4％

32.0％

15.5％

△16.5pt－(Millions of yen)

Brand
FashionTire andWheel
Others6

Brand・Fashion

purchase

Individual purchases remained strong due to purchase events, etc.
Amount of purchasefrom individualcustomers(Millions of yen)FY2018 1Q

FY2019 1Q

FY2020 1Q

ChangeYoY

4,359

4,949

5,818＋868

117.6％

Home deliveryPurchasing210248260＋11104.7％

Total

4,570

5,198

6,078＋880

116.9％

Purchase center(Includes purchase events)

1. KAITORI GO
Establishment of specialized departments,department stores, etc.
Focusing on alliances and events withother companies
2. Open stores specializing in purchasing【Purchase event at the Komeda Coffee Store Yokohama Eda Store】 7

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

periodKomeda Coffee Store
Yokohama Eda store‘19.05.09~05.21

Jaguar Land Rover Tenpaku‘19.05.23~05.25

MOZO Wonder City

’19.05.25~06.09

RAKUDA bookstore honten‘19.06.14～06.30

MARUHIRO department store
Kawagoe store‘19.07.17～07.30

TAKASHIMAYA Gate Tower Mall

’19.07.17～08.19【Purchase event at the RAKUDA bookstore honten】

8

Brand・Fashion

New storesOpened a large watch specialty store and purchase specialty store in Kanto area※【KOMEHYO Shinjyuku WATCH store ‘19.4】【Purchase center Shinkoiwa-minamiguchi ‘19.5】【 Purchase center Gakugeidaigaku-nishiguchi ‘19.7】※ Moved the watch section from the Shinjuku store. Convert the old watch section of Shinjuku store to the jewelry section.

9Brand・Fashion

EC

Although sales declined,
the number of products sold increased due to increased handling of clothing, etc.
(Millions of yen)

FY2018 1Q

FY2019 1Q

FY2020 1Q

Net sales
YoY

No. ofproducts soldYoY

E-commerce-induced
sales

1,453

1,866

1,765

94.6％

108.3％

E-commerce-induced
sales rate(※1)

24.4%

28.5％

27.3％－－【Percentage of online sales by channel (FY2020 1Q)】 【 Online sales trend by channel 】
KOMEHYO website

18.5% 21.2%

2,000

KOMEHYO website

Back orders

Others

1,500

Back orders ※2Others

1,000

60.3%

※1 EC Sales as a Percentage of Retail Sales※2 Customers specify a store to do back orders online

5000

FY2018 1Q

FY2019 1Q

FY2020 1Q

10Brand・Fashion
corporate customers
Auction Trade volume for domestic corporations is expanding trend
Trade volume(Millions of yen)

FY2020 1Q

6,449

112.0％【Transition of auction Trade volume for domestic corporations】(Millions of yen)

5,757

YoY

No. ofmember companies

965※100companies
increased this term

【Auctions are held twice a month】

6,449

4,282

FY2018 1Q

FY2019 1Q

FY2020 1Q

11

Tire and Wheel

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

12

Planned progress rate for the FY 2020
(consolidated)
Net sales have remained steady
1QProgress rate

FY2020 plan

115.8%

46.1%

56,400110.7%

458

93.5％

20.2％

1,329

71.4%

Ordinary
income

427

85.7％

19.1％

1,261

69.0%

Net income
attributableto owners ofparent

243

75.6％

20.5％

727

72.0%

Consolidated

H1 planYoY

Net sales

27,000Operatingincome(Millions of yen)

YoY※Profits are expected to decline in the first half and full year due to increased Rents for opening of the Shinjuku WATCH
13
store and Personal expenses associated with business expansion.

Net Sales Plan (Consolidated)
Generate JPY68 billion on a consolidated in the fiscal year ending March 31, 2022
(Millions of yen)

68,00062,30056,40050,96045,497FY2018 results

FY2019 results

FY2020 plan

FY2021 plan

FY2022 plan

14

Profit Plan (Consolidated)
Aim for medium- to long-term growth through strategic investment
Operating income

Ordinary income

Net income attributable to owners of parent
2,630 2,630(Millions of yen)

2,210 2,170
1,860 1,826

1,700

1,625 1,610

1,370

1,329 1,261

1,073

1,009727

FY2018 results

FY2019 results

FY2020 plan

FY2021 plan

FY2022 plan

15

Shareholder returnDividend changes
Dividends (Yen)403530

Dividend payout ratio (％)

100

Fiscal year-end dividendInterim dividend
Payout ratio(Schedule)

90801616702560205048.2

1510403034.720516160FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

10016

Corporate 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. ofemployees

Consolidated: 689 (As of March 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
Stock

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

17

Store Type28 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.

55 stores
Sale and purchase *Ladiescasual clothing,Bags, small items, etc.

Mid-scaleOpening stores in large major cities
Sales/Purchase3stores

3 stores8stores

Sale and purchase *clothing at a lower
price point
Bags, small items, etc.

Small-scale
Opening stores in major cities
Sales/Purchase

Purchasing Center
Opening stores in major cities

Purchase only

12stores*Some stores only sell

Total 36 stores (‘19.6)
18Group structure (‘19.6)
KOMEHYO

Brand Reuse Business

EveCorporation

Shellman

Craft

AUTOParts
Japan

Four by fourEngineering
Services

Apparel business,Sneakers business,
Shoes care business

Antique watch,
Antique jewelrybusiness

Tire･ wheel business
Operation of sales
store ’Craft’

Tire･ wheel business
Operation of sales
store ’U-ICHIBAN’

Tire・Wheel business
Planning of automobile
Parts, R&D ,manufacturing, etc.

NJKP

KOMEHYOSHANGHAILIMITED

BEIJINGHUAXIA
KOMEHYO
LIMITEDSAHA
KOMEHYOCOMPANY
LIMITED(HONG KONG)【JV】
Diamond auction(CHINA)
Product supply
to Beijing(CHINA)【JV】
Operation of sales
store ’LuxStory’(THAI)【JV】

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

KOMEHYOHONG KONG
LIMITED
BtoB
Global businesssupervision

Brand・Fashion business
Tire and Wheel business

19Corporate History●Opened Umeda Store,Shinjyuku Store ANNEX,Meieki Store●Acquired Eve Corporation Co.,Ltd.、Ark marketing japan 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

1979

1987

1996

2000

2003

2004

2005

2011

2012

2013

2017

2018

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 Purchasing Center Toyota,●Opened Yurakucho Store
Kyodo-nodai street,Mukogaoka-yuen,(full-scale expansion into Tokyo)
Hoshigaoka Terrace●Expanded into Kansai●Acquired Shellman Co.,Ltd.
(Shinsaibashi Store)●First Overseas Store Opened in Beijing, China●Started online sales●Expanded into Tokyo●Opened Shinjyuku WATCH store,(Purchasing Center Dogenzaka)
Purchasing Center Shinkoiwa-minamiguchi●Changed the Japanese spelling of its name●Acquired Four by four engineering service Co.,Ltd
from 米兵 to コメ兵●Established KOMEHYO Co., Ltd.

20

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

The No. of employees（Brand-Fashion)
Turnover rate

30

General regular workers(except part-time workers)(Ministry of Health,Laver and Welfare)

The No. ofemployees

487
520

451

25

535

548

383
20
15307
12.9

290
11.3

323
11.7

400

345

11.5

12.4

500

300
12.2

11.8

11.4

11.6

200

10

8.8

5100

5.8

5.0

3.6

010.3

11.3

12.3

13.3

5.2
14.3

3.2
15.3

4.5

3.9

4.6

16.3

17.3

18.3

3.0
19.3

021