Earnings Results Briefing for
the Fiscal Year Ending March 31, 2016

May16 2016
KOMEHYO Co., Ltd.
Securities code: 2780 (Second Section, Tokyo and Nagoya Stock Exchanges)

The IR strategy department

TEL +81-52-249-5366

INDEX
１．Overview of Financial Results for the Fiscal YearEnding March 31, 2016

P.02

２．Business status

P.10

３．Plan for the Fiscal Year Ending March 31, 2017

P.23

４．Medium-term Management Plan

P.32

５．Reference Information (Company Profile, etc.)

P.36

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
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.

1

Overview of Income Statement
Consolidated net sales: posted a new record highConsolidated(Millions of yen)

FY2014(‘13.4-’14.3）

FY2015(‘14.4-’15.3)

FY2016(‘15.4-’16.3)

ChangeYoY

Net sales

40,212

43,19945,903＋2,704106.3％

Gross profit

12,627

13,16813,061

△107

99.2％

Gross profit margin

31.4%

30.5％

28.5％

△2.0pt－SG&A expenses

9,627

10,038

10,271＋232

102.3％

Operating income

2,999

3,129

2,789

△340

89.1％

Ordinary income

2,988

3,162

2,742

△420

86.7％

Net income
attributableto owners of parent

1,834

2,040

1,696

△343

83.2％

2

Operating income increase anddecrease factor（ Consolidated ）Gross profit margin decreased 2.0 pt. with higher general &administrative expenses due to new store openings
4,000(Millions of yen)

Rents
+129
Maintenance expenses + 94
Personal expenses+ 50
Selling expenses
△ 18

3,500
3,000

3,129

Sales amountincrease

2,500

＋824

Gross profit margin
drop△931

S, G&A Expenses

2,789

increase

2,000

△232

1,500

Operating income（△340）

1,000
500
0

FY2015FY20163

Overview of Income Statement
Non-consolidated net sales: posted a new record highNon-consolidated(Millions of yen)

FY2014(‘13.4-’14.3）

FY2015(‘14.4-’15.3)

FY2016(‘15.4-’16.3)

ChangeYoY

Net sales

35,17638,50740,554＋2,046105.3％

Gross profit

10,733

11,363

11,090

△273

97.6％

Gross profit margin

30.5%

29.5％

27.3％

△2.2pt－SG&A expenses

8,059

8,590

8,664

＋73

100.9％

Operating income

2,674

2,773

2,426

△347

87.5％

Ordinary income

2,672

2,815

2,400

△415

85.2％

Net income

1,637

1,830

1,480

△349

80.9％

4

Selling, General and Administrative
Expenses
General & administrative expenses
including rents increased due to active new store openings
Consolidated(Millions of yen)

Selling, General and Administrative
Expenses

FY2015FY2016

ChangeYoY

10,038

10,271＋232

102.3%

Selling expenses

1,887

1,868

△18

99.0%

Personnel expenses

4,524

4,574

＋50

101.1%

General & administrative expenses

3,627

3,828

＋201

105.6%

636

589

△46

92.6%

1,650

1,780

＋129

107.9%

Depreciation
Rents

Non-consolidated(Millions of yen)

Selling, General and Administrative
Expenses

FY2015FY2016

Change

YoY

8,590

8,664

＋73

100.9%

Selling expenses

1,815

1,720

△94

94.8%

Personnel expenses

3,846

3,900

＋53

101.4%

General & administrative expenses

2,928

3,042

+114

103.9%

5

Profit Margin Trend
Operating income margin decreased as gross profit margin decreased,
which offset a decrease in SG&A expenses

Consolidated

（％）

35
30.9
30

28.1

25

23.4

24.8

20

31.4

23.9

Non-consolidated

（％）

35
30.5

23.2

30.2
28.5

30

28.0

22.4

25

23.3

20

Gross profit margin

4.7

6.1

7.5

7.2

15

6.1

0

0
FY2014FY2015

22.9

22.3

21.4

Operating income margin4.8
5FY2013

24.1

10

5

FY2012

27.3

SG&A expenses to sales ratio

Operating income margin

10

29.5

Gross profit margin

SG&A expenses to sales ratio

15

30.5

FY2016FY2012

6.1

FY20137.6

7.2

FY2014FY2015

6.0

FY20166

Overview of Balance Sheet
Products decreased due to improved inventory control
Non-consolidated

Consolidated
Liabilities and Net
AssetsAssetsCash anddeposits
2,799

Products
11,052

3,145

10,488FY2015Current
liabilities
6,404

Non-current
liabilities
1,437

Net assets
16,791

5,509

Products
9,845
Other
current assets
2,351
Non-current
assets
7,445

7,817

FY2016

Cash anddeposits
2,180

FY2015

1,742

997

18,152FY2016

Liabilities and Net
Assets(Millions of yen)

(Millions of yen)Othercurrent assets
3,208
3,086
Non-current
assets7,694

Assets

FY2015

9,437

3,322

Current
liabilities
4,404
Non-current
liabilities
1,262

3,944
861

Net assets
16,157

17,307FY2015FY20167,611

FY2016

7

Statement of Cash Flows
Cash flows from operating activities were stable,
partly due to the effects of inventory reductions

Consolidated(Millions of yen)

FY2014FY2015

4,500

3,500

FY2016
4,257

3,322
2,848

500

FY2014

3,500

1,499

366

1,500

-777
-829
Cash flows from operating activities -1,091
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents

1,735

888
318

-500

-575 -466-1,500

2,235
1,474

500

-500

FY2016

2,854

2,704
2,500

1,199

FY2015

4,500

2,855

2,500

1,500

Non-consolidated(Millions of yen)-586
-1,500

-588

-430

-694

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents

-882

8

By Segment
Tire and Wheel segment posted strong results(Millions of yen)

FY2014FY2015FY2016

ChangeYoY

Brand
FashionTire and
Wheel
Others

Net sales

35,47338,874

41,175+2,300105.9％

Operatingincome

2,763

2,979

2,611

△367

87.7％

Operatingmargin

7.8%

7.7％

6.3％

△1.4pt－Net sales

4,637

4,232

4,640

+408

109.6％

Operatingincome

210

124

155

+30

124.5％

Operatingmargin

4.5%

2.9％

3.3％

＋0.4pt－Net sales

141

134

132

△1

98.6％

Operatingincome

26

25

22

△3

88.3％

Operatingmargin

18.8%

19.2％

17.2％

△2.0pt－9

１．Overview of Financial Results for the Fiscal YearEnding March 31, 2016

P.02

２．Business status

P.10

３．Plan for the Fiscal Year Ending March 31, 2017

P.23

４．Medium-term Management Plan

P.32

５．Reference Information (Company Profile, etc.)

P.36

10

External Environment(1)Domestic Economy, and Business Sentiment
Uncertainties due to an abrupt slowdown
in China’s economy and other factors
Stock price(yen)

Current business sentiment DI

Businesssentiment DI

1-year-ahead business sentiment DI

Nikkei 225 (monthly closing price)15

20,000China shock5

18,0000-5Declines in stock prices
Yen’s appreciation

16,000-15
14,000-25
12,000-35-45

10,000

'15.4

5

6

7

8

9

10

11

12

'16.1

2

3

Source: Created by the Company based on information obtained from the Bank of Japan, Nikkei Company Information

11

External Environment(2)Secondhand Market
Secondhand market is expanding
15,966

Secondhand market Trendsof annual sales
14,916(100 million yen)

The number of the dealer in
760,000 secondhanded articles permission
740,000

720,000

13,594700,000

12,590680,000

660,000

11,274

11,443640,000

620,000

600,000

'09

'10

'11

'12

'13

'14

Source: The Reuse Business Journal Secondhand Business Data Book 2016'05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Source: The National Police Agency 12

External Environment(3)Reuse market according to the product
Brand name products and clothing are on a growing trend
in terms of both growth rate and market size
Market ratio(%) 18Domestic retailreuse market size(FY2014)(100 million yen)

16

Brand-nameproducts

14

2,310

12
10

Clothing/accessories

Game/media
1,144

8

6

Books
994

4

1,241

Camera543

2
Change (%)
0
-4

-2

0

2

4

6

8

10

Source: The Reuse Business Journal Secondhand Business Data Book 20161213

External Environment(4)Ranking in the Secondhand industry
Secondhand sales amount :No.3､ Brand-name products
sales amount:No.1､Clothing/accessories sales amount:No.6
Secondhand sales amount(FY2014)

G

B

KOMEHYOS

K

Brand-name products sales amount(FY2014)

10.7%

Others

KOMEHYO
D

2.1％

Market size
231 billion yen

B
OthersMarket size
1,596 billion yen

Clothing/accessories sales amount(FY2014)

Market size
124 billion yen

Source: The Reuse Business Journal Secondhand Business Data Book 2016

3.6%

G
B
T
T
H
KOMEHYO
Others14

Initiative(1) Opening of New StoresOpened 9 stores in FY2016 ; Small-scale 5 stores､
Purchasing Center 2 stores、LINK SMILE 1 store、urca jewel １store【FY2016 1H store open】
KOMEHYO
Sakae Central Park Store
April 29, 2015
(approx. 66m2)

KOMEHYO
Kobe Motomachi StoreMay 25, 2015
(approx. 220m2)

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

KOMEHYO
Purchasing Center
Tachikawa Kitaguchi
September 18, 2015
(approx. 167m2)【FY2016 2H store open】
KOMEHYO
Canal City Hakata Store
October 1, 2015
(approx. 138m2)

LINK SMILE by KOMEHYO
Kasugai kashihara store
March 4 , 2016
(approx. 388㎡)

KOMEHYO
Jiyugaoka Store
November 11, 2015
(approx. 84m2)

KOMEHYO
Tenjin store
March 26 , 2016
(approx. 193㎡)【FY2017 store open(planned)】
KOMEHYO
Purchasing Center
Sinjyuku mimamiguchi
May 2016 (planned)(approx. 117m2)

KOMEHYO Canal City Hakata Store

KOMEHYO
Umeda Store
February 2017 (planned)(approx. 1,318m2)

urca jewel by KOMEHYO
Musashi koyama store
March 31 , 2016
(approx. 133㎡)

15Initiative(2) 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
2016

176 persons

110 persons

286 persons

YoY
Change＋12 persons

Total No. ofbuyersFinal test of buyer development program＋22 persons＋34 persons

Training program for non-standard products

Textbooks

16

Initiative(3)Purchase from Individual Customers

Purchases from individual customers remained solid
Amount ofpurchase fromindividual
customers
Purchasing
Center

FY2014(‘13.4’14.3）

FY2015(‘14.4’15.3)

FY2016(‘15.4’16.3)

ChangeYoY

15,08916,596

17,537＋941

105.7％

Home delivery
Purchasing

805

841

887

＋45

105.4％

Total(Millions of yen)

15,895

17,43818,425＋986

105.7％

Purchasing Center
Ikebukuro Nishiguchi

Tenjinstore

Jiyugaoka Store

Purchasing Center
Tachikawa Kitaguchi

17Initiative(4) 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

6,309

103.1％

134.2％Net sales

FY2016All online stores【Percentage of online sales by channel】【Roles of smartphone e-commerce sites】
KOMEHYO
website11.9%

Back orders

29.6%
OthersOmni channel retailing
Initiative1:Enabling delivery to physical stores
Initiative2:installment payment estimation services
Initiative3:enhanced product inquiry services

Apps: Obtaining detailed product information
using bar-code readers

58.5%
18

Initiative(5) Member’s Card
Integrated management of customer information,
covering physical and online stores
Card members(FY2016)

No.

YoY

Total members

602,000

120.2%

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

19

Initiative(6) KOMEHYO Auction
Sales to secondhand dealers in Japan

Restaurant
auction(Jewelry,
watches, bags)

Apparelauction(Clothing)Frequency

Trade volume(FY2016)

YoY

Monthly
3 days

JPY17,900
million114.5％

No. ofmembercompanies

655
Monthly
1 day

JPY330
million146.8%
KOMEHYO auction

KOMEHYO auction
20

Initiative(7) KOMEHYO HONG KONG
Sales to secondhand dealers abroad
FY2016

Net sales

KOMEHYO
HONG KONG
LIMITEDapprox.
2 billion yen

・ Onsite staff for overseas contacts

ＮＪＫＰ auctions

・Participation in NJKP auctions
・ Jewelry show
・ Expansion of B2B business
Jewelry show21

Initiative(8) Tire and Wheel
Sale of tires, wheels, and vehicle parts
Net sales(Millions ofyen)

Composition

Tires/wheels

4,065

87.6％

107.7％

Parts (incl. laborcharge)

574

12.4％

125.4％FY2016

YoY

Craft website homepage

Segment total

4,640

100.0％【Strengthen of sales】
・Summer tires
・Customized parts：car height control
・Luxury wheel【 Leveraging new product center 】
・Contributing to web sales
・Improving efficiency of embedding
and other operations

109.6％

Craft Nakagawa Store22

１．Overview of Financial Results for the Fiscal YearEnding March 31, 2016

P.02

２．Business status

P.10

３．Plan for the Fiscal Year Ending March 31, 2017

P.23

４．Medium-term Management Plan

P.32

５．Reference Information (Company Profile, etc.)

P.36

23

FY2017 plan
Increased profit and revenue are forecasted on both consolidated andnon-consolidated bases (full-year)
Consolidated(Millions of yen)

FY2017
1H planYoY

FY2017 plan

YoY

21,000100.3%

48,000104.6%

Operating income

930

81.0%

2,850

102.2%

Ordinary income

930

81.2%

2,850

103.9%Net income attributableto owners of parent

620

88.6%

1,900

112.0%Net sales

Non-consolidated(Millions of yen)

FY2017
1H planYoY

FY2017 plan

YoY

18,50098.3%

42,500104.8%

Operating income

850

78.1%

2,450

101.0%

Operating income

850

77.8%

2,450

102.1%Net income

580

86.6%

1,650

111.5% 24

Net sales

Key Issues to Be Addressed(1)Enhancing new store openings and store management
1.Manage and analyze customer
information  increase number ofreturning customers【 KOMEHYO Umeda Store】
February 2017 (planned)

2. Implement various promotion
initiatives
 increase number of new customers
3. Opening stores for purchasing
 improved purchasing fromindividual customers【 KOMEHYO Nagoyaｰekimae Store】
May 2017 (planned)

KOMEHYO Nagoyaｰekimae Store

Building for planned
store opening(１-３F)
25

Key Issues to Be Addressed(2)Strengthening Product Control Function
1.Enhance the product maintenance system,
including processing, repairing and cleaning
2. Review the product management
system/schemes
 More efficient supply system,
reduced management costs, andenhanced authenticity checks

Jewelry inspection【Value Chains in Product Center】
Arrival of Goods

Inspection/outsourcing

Market price/sorting•Receipt processing•Sorting•Market price•Purchase entry•Outsourcing/inspection

registration•Product sorting

Marking

WEB

Inspecting a watch

Input/shipping•Selection•Taking pictures•Enter information•Determination of sale

•Registration for display•Packing/shipping

price

26

Key Issues to Be Addressed(3)Enhancing Ｅ-Commerce/IT
1. Improve EC sites, enhancecoordination with physical stores formarketing
2. Implement various initiatives
including alliances and promotion
Further leverage EC【Sponsoring an SNS linked TV
Program “#モデる [modeling]” 】
On air from April 3, 2016
Started sponsoring a new TV program by TV
Asahi “#モデる” (Sundays, 23:10-23:15)

3. Review and enhance information
technologies【Tie-up with Rakuten points reward card】
Tie-up with Rakuten points reward card
is to start from summer of 2016.

27

Key Issues to Be Addressed(4)Enhancing Talent Development
1.Strengthen leader development throughtraining programs such as those for nextgeneration leaders and coaching
2. Enhance development of buyers in linewith store opening plans
Newly-appointed manager training program

3. Establish and enhance educational
programs
 Better customer services
4. Promote active involvement of women Establish an environment for
facilitating career progression
and a systematic training framework

Skill enhancement training program28

Key Issues to Be Addressed(5)New Business Initiatives
1.Establish overseas bases
 strengthen overseas business
2.Develop new customers expand corporate business
3.Examine new operation methods strengthen auction business

ＮJKP diamond auction

Jewelry fair

Products
presented

29

Key Issues to Be Addressed(6)Increasing Sales/Revenue of Tire and Wheel Business
1.Strengthen original auto supply
 higher profit margin
2.Expand sale channels through ecommerce sites
3.Become more appealing through SNS
 develop new customer bases
4.Reform logistics functions
 greater operational efficiency
Original Wheel : AXEL REDIRE
AXEL Briller
30

Shareholder return
Dividend changes
Dividend(yen)Payout ratio(％)

Fiscal year-end dividend

40Interim dividend

Payout ratio

36.2

40

Forecast

35

32

30
29.3

26

28

35

30
30

25

16

20

23.0

19

25

24.8
15
10

19.4
16.6

16.0

15.5

15.0

18.5

16

5

20

15

13.2
0

10

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
31

１．Overview of Financial Results for the Fiscal YearEnding March 31, 2016

P.02

２．Business status

P.10

３．Plan for the Fiscal Year Ending March 31, 2017

P.23

４．Medium-term Management Plan

P.32

５．Reference Information (Company Profile, etc.)

P.36

32

Medium-term Basic Targets(Consolidated)
Achieve sustainable growth focusing on the opening of new storesConsolidated

FY2017(‘16.4-’17.3)

FY2018(‘17.4-’18.3)

FY2018(‘18.4-’19.3)

JPY48.0B

JPY52.3B

JPY54.0B

Operating income

JPY2.85B

JPY3.25B

JPY3.40B

Operating margin

5.9％

6.2％

6.3％

Store openings

６stores

６stores

６stores

５stores

５stores

５stores

１store１store１storeStore typeNet sales

KOMEHYOsmall-scale
Purchasing Centerby KOMEHYOLINK SMILE
USED MARKET
urca jewel

33

Net Sales Plan
Generate JPY54 billion and JPY48 billion on a consolidated and nonconsolidated basis respectively in the fiscal year ending March 31, 2019

Consolidated
Net sales(Millions of yen)
45,903

Non-consolidated

54,00052,300Purchases by individual costomers

48,000Net sales (Million of yen)

43,19946,50048,00042,50040,55438,507

17,43818,425FY2015FY2016FY2017FY2018FY2019FY2015FY2016FY2017FY2018FY2019results

results

plan

plan

plan

results

results

plan

plan

plan

34

Profit Plan
Achieve sustainable profit growth by increasing net sales
Operating income
3,129 3,162

Consolidated

Ordinary income(Millions of yen)

Net income attributable to owners of parent 3,400 3,400
3,250 3,250

2,789 2,742

2,850 2,850
2,300

2,200

2,040

1,900
1,696

FY2015 results
Operating income

FY2016 results
Ordinary income(Millions of yen)

FY2017 plan

FY2018 plan

Net income

Nonconsolidated

2,773 2,815

2,900 2,900

2,800 2,800
2,450 2,450

2,426 2,400
1,830
1,480

FY2015 results

FY2019 plan

FY2016 results

1,650

FY2017 plan

1,880

FY2018 plan

1,900

FY2019 plan35

１．Overview of Financial Results for the Fiscal YearEnding March 31, 2016

P.02

２．Business status

P.10

３．Plan for the Fiscal Year Ending March 31, 2017

P.23

４．Medium-term Management Plan

P.32

５．Reference Information (Company Profile, etc.)

P.36

36

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,

2015
2014
2013
2012

2011

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

2010
2005

2004

2003
2000
1996
1987

1947

●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●Listed on JASDAQ●Opened Yurakucho Store (full-scale expansion into Tokyo)
1979●Opened Purchasing Center●Expanded into Kansai (Shinsaibashi Store)
Yurakucho Store,●Started online sales
Ikebukuro
Nishiguchi,●Expanded into Tokyo (Purchasing Center Dogenzaka)
Tachikawa Kitaguchi,●Changed the Japanese spelling of its name●Opened KOMEHYO
from 米兵 to コメ兵
Sakae Central Park Store,●Established KOMEHYO Co., Ltd.
Kobe Motomachi Store, 37
Canal City Hakata Store

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 MARKET
urca jewel

WEB

Generalcustomers

Generalcustomers

KOMEHYO
LINK SMILE
USED MARKET
urca jewel

Quality, market
price, distribution

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

KOMEHYO

New/secondhand dealers

Secondhand dealers38

Business results for the past decade
Achieved a V-shaped recovery with store opening, new organizational structure,and subsidiary establishment
Consolidated net sales(100 million yen)

500

450

Consolidated operating
Opened 5 KOMEHYO stores,2 Craft storesincome (100 million yen)
Auto Parts KOMEHYO (currently AUTO PARTS JAPAN)
KOMEHYO, etc. 50
Established KOMEHYO HONG KONG LIMITED
Opened 9 stores
KOMEHYO, etc.
Opened 9 stores including
Opened 4 stores
KOMEHYO,
45

Consolidated net sales
Consolidated operating income

400
KOMEHYO
Opened 2 stores
KOMEHYO
Opened 1 store

350
300

New organizational structureOpened 1 Craft store
Established KOMEHYO Auction
Launched Product Center
Opened 4 stores including
KOMEHYO
Acquired Craft

40
35
30

KOMEHYO, etc.
LINK SMILE
Opened 4 storesOpened 1st store

250
200

Lehman Bros
bankruptcy

25

The Great
East Japan
Earthquake

150

20

Consumption
tax increase

15

100

10

50

5

0

0
FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY201639

Group Status
Sales composition (cumulative FY2016 results)
Brand Fashion segment
Buying and selling products including jewelry,
precious metals, watches, bags, and clothing

Tire and Wheel segment
Buying and selling tires and wheels as well as
provision of services

Group net sales
KOMEHYO (nonconsolidated)
Product sales
0%20%

Jewelry/precious
metals40%

Watches

60%

Bags, clothing

80%

100%

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 for secondhand
dealers

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

Sale of passenger-car
tires, aluminum wheels,
auto accessories, andparts

Import, sale, andpurchase of auto
parts

40

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

29

Store
(as ofMarch
2016)

Large-scale comprehensive
reuse store
Nagoya Store: Approx. 2,024
tsubo
Shinjuku Store: Approx. 829
tsubo
Main products(sales/purchase):
Jewelry, precious metals,
watches, bags, clothing
Kimonos, cameras,musical instruments
stores2

Mid-scale

Small-scale

Opening stores in large major
citiesStore size
Approx. 100-300 tsubo
Main products(sales/purchase):
Jewelry, precious metals,
watches, bags, clothing

5stores

Opening stores in major cities
Store size
Approx. 20-30 tsubo
Main products(sale/purchase):
Jewelry, precious metals,
watches, bags, clothing
Strengthening backorder

15stores

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

7stores41

Store Type (2)Stores focusing on sales and purchase of ladies casual clothing

7Store(as ofMarch
2016)

Main products (sales/purchase): Ladies casual clothing, bags, accessories
Operating 7 stores in Aichi
42

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

4
stores(as ofMarch
2016)

Main products (sale/purchase): Clothing, bags, accessories
Red tags are attached to products and prices are lowered every two weeks
43

Store Type (4)Stores focusing on sales and purchase of jewelry, precious metals

1stores(as of March
2016)

Main products (sale/purchase): jewelry, precious metals
All goods new finish、Replacement promotion of jewelry、Development of the remake jewelry、Repair service

44