Earnings Results Briefing for
the Third Quarter of the Fiscal YearEnding March 31, 2020
February 14,2020
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 3Q Financial Summary【Performance Highlights】Downward revision of FY 2020 earnings forecast
due to decreases in operating income and quarterly net income

Consolidated

FY2020 9months
YoY

Revised FY2020
Plan YoY

Non-Consolidated

FY2020 9months
YoY

Revised FY2020
Plan YoYNet Sales

114.1％

111.5％Net Sales115.0％

109.3％

Operating income

33.9％

16.1％

Operating income

48.7％

29.7％

Net income
attributable toowners of parent

17.9％

4.0％

Net income

57.8％

30.8％

【Business Topics】
Brand・Fashion businessOpening ofShinjuku
WATCH store,
KOMEHYOFASHIONNAGOYA,

four purchasecenters

Expansion ofsales tocorporate
customers

Tire and Wheel business
Acquired
K-BRAND OFF
Co.,Ltd andtwo overseas
subsidiaries

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

Acquired
Four by four
engineering
service Co.,Ltd1Economic Trend
Most recently, impact of the consumption tax hike
Net sales
YoY (%)

Stock Price（yen）

Department store(fine arts/jewelry/precious metals)
KOMEHYO net sales(non-consolidated)
Nikkei Stock Average(monthly closing price)200

Consumption
tax increased
24,000150

19,000100
100

FY202050'18.45678

9101112 '19.1

2345678914,000
101112（Source：JAPAN DEPARTMENT STORES）

2

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

FY20201Q

YoY

FY20202Q

YoY

FY20203Q

YoY

Net sales

12,439110.4%

15,288126.9％

14,999106.1％

42,728114.1％

Gross
profit3,421

106.1%

3,672

118.6％

3,879

97.5％

10,973106.5％

Gross
profitmargin27.5％△1.1pt24.0％△1.7pt25.9％△2.3pt25.7％△1.8ptSG&A
expenses

3,328

115.0%

3,447

117.4%

3,720

121.6%

10,496118.1％

Operatingincome

92

28.1%

225

140.8％

159

17.3％

477

33.9％

Ordinary
income

81

25.1%

209

121.7％

444.9％

335

24.0％

Net income
attributableto owners ofparent

49

23.6%

136

123.4％

△22－

163

17.9％

FY20209months

YoY3Overview of Income Statement（ Non-Consolidated ）(Millions of yen)

FY20201Q

YoY

FY20202Q

YoY

FY20203Q

YoY

Net sales

11,105111.8%

13,755

127.5％

12,289106.0％

37,151115.0％

Gross
profit2,928

107.1%

3,103

115.4％

2,977

94.1％

9,010

104.9％

Gross
profitmargin26.4％△1.1pt22.6％△2.3pt24.2％△3.1pt24.3％△2.3ptSG&A
expenses

2,791

114.1%

2,886

113.5%

2,814

111.0%

8,492

112.9％

Operatingincome

137

47.4%

217

148.5％

163

26.0％

518

48.7％

Ordinary
income

227

77.8%

209

129.3％

140

22.9％

577

54.0％

Net
income169

86.1%

148

137.5％

98

23.6%

415

57.8％

FY20209months

YoY4Sales by sales channel(Non-Consolidated)

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

Net sales
32,315

OthersCorporate sales
YoY143.6％

Net sales
37,151
Composition ratio

Composition ratio

43.4％

34.8％

64.9％

FY2019-3Q

RetailYoY99.9％

56.4％

FY2020-3Q

5Gross Merchandise Value（ Consolidated ）Expansion expected thanks to increasing purchases from individuals
and turning K-Brand OFF into a group company

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
3,000

Operating income(Million of yen)
Gross profit Margin

2,500

Sales amount
2,000

increase ＋1,449

1,500

1,000decrease △776

Increase in administrative expenses primarily due torents for new store openings and fees for acquisition ofK-BRAND OFF△790
Increase in personnel expenses due to businessexpansion△526
Increase in selling expenses, such as PR/advertisingcosts, due to sales expansion△2881,409

A decline of 1.8 pts.
The rising ratio ofcorporate sales tototal sales(8.6pts)

S,G&A Expenses
increase△1,6055004770

FY2019-3Q

Operating income（△932）

FY2020-3Q

7Overview of Balance Sheet(Consolidated) Surge in current liabilities mainly due to turning K-Brand OFF into a group company

Consolidated
Assets33,122Liabilities andNet Assets

Assets38,735
Cash and deposits
6,414

Liabilities andNet Assets

33,122

Cash and deposits

Current Liabilities

4,794

Products
Products

15,715

13,19438,735

5,612

5,102

Non-current

Non-current

Assets29,797

Current Liabilities
15,100Cash and deposits
2,482

Assets32,176

Non-current liabilities

Non-current liabilities

4,592

4,043

Products
11,741Other current assets

Net assets

Net assets

19,48819,591

5,172

Products

11,592

Liabilities andNet Assets

Current Liabilities

Current Liabilities

7,543

10,282

Non-current liabilitiesNon-current liabilities

4,175

3,496

Net assets

Net assets

18,077

18,397FY2019-3Q

FY2020-3Q

29,79732,176

Other current assets
6,926

Non-current

assetsassetsassetsassets10,031

10,991

10,401

10,121FY2019-3Q

FY2020-3Q

FY2019-3Q

FY2020-3Q

FY2020-3Q

Liabilities andNet Assets

3,536

Non-current

FY2019-3Q(Millions of yen)

Cash and deposits

9,041

Other current assets
Other current assets

Non-consolidated

8By Segment
FY20201Q

YoY

FY20202Q

YoY

FY20203Q

YoY

Net sales

11,701112.8％

14,443129.0％

13,635112.3％

39,780118.0％

Operatingincome

184

53.8％

266

131.0％

98

14.3％

549

44.6％

Operatingmargin

1.6％

－

1.8％

－

0.7％

－

1.4％

－

Net sales

716

81.5％

824

98.5％

1,345

68.2％

2,886

78.3％

Operatingincome

△95－

△43－

67

30.3％

△72－

Operatingmargin△13.4％

－

△5.3％

－

5.0％

－

△2.5％

－

Net sales

24

77.5％

23

71.2％

2163.2％

69

70.5％

Operatingincome337.6％

119.0％△6－△0－

Operatingmargin

15.5％

－

7.8％

－

△28.6％

－

△0.8％

－

Brand
Fashion(Millions of yen)

FY20209months

YoY

Tire andWheelOthers※ K-BRAND OFF is included in the “Brand fashion” business.

9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

FY20203Q

YoY

FY20209months

YoY

Purchasing
Center

5,818

117.6%

6,213

135.9％

6,357

111.9%

18,389121.0％

Home delivery
Purchasing

260

104.7％

246

102.1％

238

100.0%

744

102.3％

Total

6,078

116.9%

6,460

134.2%

6,595

111.5%

19,134120.1%(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 TAKASHIMAYA Gate Tower Mall】

10Brand・Fashion

EventsGoing to "Customer's usual location" to make reuse more accessible.
Main Event Partners※Q3 and later

periodSANYO department store

2019
10.29～11.5

MITOKEISEI department store

10.24～11.5

KEIHAN department store
Moriguchi store

11.21~11.27

MEITETSU・EMUZA

11.5～11.16

mozo WONDER CITY12.9～12.30

MARUHIRO department store
Ageo store

12.11～12.24

YAMAGATAYA(KAGOSHIMA)

2020
1.22~1.28【 Purchase event at mozo WONDER CITY】 11

Brand・Fashion

New stores

Opening of five purchase stores【Purchase center Shinkoiwa-minamiguchi ‘19.5】【Purchase center Gakugeidaigaku-nishiguchi ‘19.7】【Purchase center Kokubunjiminamiguchi ‘19.9】【Purchase centerKamata-nishiguchi ‘19.9】【Purchase center
Sankenjyaya-sakaedori ‘19.11】

12

Store Type （ Non-Consolidated ）32 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

16stores3 stores
Sale and purchase *Clothing at a lower price point
Bags, small items, etc.
*Some stores only sell

Total 40 stores (‘19.12)
13EC (Non-Consolidated)
Increase in the number of products sold by strengthening the handling of clothing and others(Millions of yen)

FY20189months

FY20199months

FY20209months

Net sales
YoY

No. of products
sold YoY

E-commerce-induced
sales

5,518

6,192

6,010

97.1％

104.7％

E-commerce-induced
sales rate(※1)

27.0%

29.5％

28.7％

－－

【 Percentage of online sales by channel(FY2020 9months)】

17.1%

22.4%

8,000

KOMEHYO website

KOMEHYO website

Back orders ※2Others

6,000
Back orders ※2

60.5%(Millions of yen)【Online sales trend by channel】

Others

4,000

2,000

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

0FY2018 9months

FY2019 9months

FY2020 9months 14

Nagoya main store renewal
KOMEHYO FASHION NAGOYA opened(the camera and musical instrument sections relocated to the main store.)【 Relocation of the camera/musical instrument
Section to the main store ‘19.10】【KOMEHYO FASHION NAGOYA ‘19.11】

15

Shinjuku store relocation completed
A three-store system in the proximity of Shinjuku Station was completed,enhancing convenience for customers【KOMEHYO Shinjyuku store FASHION Building ’20.4 Scheduled】【Image of FASHION building】(’ Scheduled to closein Feb 2020)16

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

FY2020 9months

19,952

YoY

113.9％

No. of member companies

1,023※98 companies increased YoY【 Transition of auction Trade volume for domestic corporations 】(Billions of yen)

199
175

136

FY2018 9months

FY2019 9months

FY2020 9months

17

SAHA KOMEHYO COMPANY LIMITEDFirst overseas opening under the name of “KOMEHYO” in Bangkok, Thailand, in Nov 2019
【KOMEHYO＠CENTRAL WORLD (Bangkok) 】

18

K-BRAND OFF (Acquired on December 3, 2019)
Domestic business was profitable in the month of December - Injection of knowhow, governance, funds, etc.

K-BRAND OFF(Japan)BRAND OFF LIMITED(HONG KONG)

名流國際名品股份有限公司(Taiwan)

Retail store[BRAND OFF]

７directly managed stores,
2 FC stores

6 directly managed stores,
2 FC stores(HONG KONG,THAI)

３directly managed stores

BtoB Auction business[Japan Brand Auction]

2 venues(Kanazawa and Ginza)－－【Representative director andother staff were dispatched】【Head Office (Kanazawa City,Ishikawa Prefecture 】【Japan Brand Auction 】

19

China business
Beijing joint venture company was dissolved,
but experience and resources are concentrated in Shanghai to strengthen the China business【BEIJING HUAXIA KOMEHYO LIMITED】
Established in June 2017
[LuxStory] retail store opened in September
2018
Dissolved in December 2019 (Resolution)【Future direction of the China Business】
Experience, achievements and resources ofBeijing are concentrated on Shanghai
The China Business isreinforced by adopting
the knowhow of K-Brand OFF
subsidiaries【LuxStory 】
KOMEHYOSHANGHAILIMITED

KOMEHYO
HONG KONG
LIMITED

BRAND OFF
LIMITED(Taiwan)
BRAND OFF
LIMITED(HK)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 (’19.12)

KOMEHYO
AuctionB2Bオークション事業

BtoB
Auction business

NJKP(HONG KONG)

KOMEHYO
HONG
KONG
LIMITED

Corporation

BtoB
Global businesssupervision

Apparel business,
Sneakers business,
Shoes care business

KOMEHYOSHANGHAILIMITEDSAHA
KOMEHYOCOMPANY
LIMITED(CHINA)【JV】
Diamond auction

Eve

BtoB

KOMEHYO

Brand・Fashion business

Brand Reuse Business

Tire and Wheel business

Shellman
Antique watch,
Antique jewelrybusiness(THAI)【JV】
Operation of sales store’ KOMEHYO@CENTRAL WORLD’K-BRAND
OFFCraft

AUTOParts
Japan

Four byfourEngineering
Services

Brand Reuse Business Tire･ wheel business Tire･ wheel business Tire・Wheel business
BtoB Auction business Operation of sales Operation of sales
Planning of automobile(Acquired on Dec 2019) store ’Craft’
store ’U-ICHIBAN’
Parts, R&D ,manufacturing, etc.
(Acquired on May 2019)

BRAND OFF
LIMITED(HONG KONG)
Operation of sales store’ BRAND OFF’(Acquired on Dec 2019)

BRAND OFF
LIMITED(Taiwan)Operation of sales store’ BRAND OFF’(Acquired on Dec 2019)23

Revised FY2020 plan
Forecast downward revision of respective incomes
RevisedFY2020Plan

FY2019Net sales

56,80050,960111.5%

Operatingincome300

1,860

Ordinary
income100

Net income
attributableto ownersof parent

40

Consolidated(Millions of yen)

RevisedFY2020Plan

FY2019YoY

Net sales

48,50044,391109.3%

16.1%

Operatingincome

450

1,517

29.7%

1,826

5.5%

Ordinary
income

440

1,524

28.9%

1,009

4.0%

Net
income

300

974

30.8%

YoY

NonConsolidated(Millions of yen)24

Net Sales Plan (Consolidated)
Upward revision of the plan for the term ending March 2020
(Millions of yen)

56,80056,400

50,96045,497FY2018 results

FY2019 results

FY2020 plan(Revised)

FY2021 plan

FY2022 plan

※ Target numbers in the medium-term management plan are revised in each term

25Profit Plan (Consolidated)
Downward revision of the plan for the fiscal year ending MarchOperating income

Ordinary income

Net income attributable to owners of parent(Millions of yen)

1,860 1,826

1,329

1,625 1,610
1,073727

1,009300
FY2018 results

1,261

FY2019 results

10040

FY2020 plan(Revised)

FY2021 plan

FY2022 plan

※ Target numbers in the medium-term management plan are revised in each term

26

Shareholder return
Dividend changes
Dividends (Yen)403530

Dividend payout ratio (％)

100

Fiscal year-end dividendInterim dividend
Payout ratio(Schedule)

908016167025602050

1540

1030

34.7

20516160
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

10027

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:948 Non-Consolidated: 539 (As of December 2019)

Businessactivities

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)28

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

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 Yurakucho Store●Opened Purchasing Center 3 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(Closed in December 2019)●Expanded into Tokyo●Opened Shinjyuku WATCH store, Purchasing Center 6 Stores(Purchasing Center Dogenzaka)●Changed the Japanese spelling of its name●Acquired Four by four engineering service Co.,Ltdfrom 米兵 to コメ兵●Retail store KOMEHYO opened in Bangkok, Thailand●Established KOMEHYO Co., Ltd.
●Acquired K-BRAND OFF Co.,Ltd and two overseas subsidiaries

29