Earnings Results
Briefing for the First Quarterof the Fiscal Year Ending
March 31, 2022
August 13, 2021
Komehyo Holdings Co., Ltd.
Securities code: 2780
(Second Section, Tokyo and Nagoya Stock Exchanges)
IR・PR Department
TEL +81-52-249-5366
Email ir@komehyo.co.jp

Contents

１．Overview of Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2022
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2022

３．Reference Information (Company Profile, etc.)2１．Overview of Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2022
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2022

３．Reference Information (Company Profile, etc.)3

FY 2022 1Q Financial Summary【First quarter results】
・Both net sales and profits grew year on year attributable to contributions made by sales tocorporations in the brand and fashion business.
・Strong individual purchases due to store openings and purchase events, etc.
・Opened 1 store annexed with sales facilities(Hong Kong Tsim Sha Tsui) and 11 Purchase centers.
・Test introduction of AI authenticity / model number judgment at 16 stores including Purchase centers【Full-year performance plan】
・Favorable results for the first quarter under review.
・Changes were made to business plans for the firsthalf and the fiscal year announced at the beginningof the fiscal year.
・We do not expect sales from foreigners visiting
Japan this term.
4

Revision of results forecasts for the first half and the fiscal year
ending March 31, 2022
Strong individual purchases、E-commerce hubs such as OMOs, contact centers, and corporate
auctions have been successful under COVID-19(Millions of yen)

1H
FY2022

FY2022

Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners ofparentBasicearnings per
share

Forecasts released
previously

26,800

380

340

210

19.17

Revised forecasts
announced on thisoccasion

30,000

1,020

1,000

680

62.06

Change

3,200

640

660

470

－

Rate of change

11.9%

168.4%

194.1%

223.8%－

Forecasts released
previously

60,000

1,550

1,450

1,000

91.27

Revised forecasts
announced on thisoccasion

63,200

2,190

2,110

1,470

134.17

Change

3,200

640

660

470

－

Rate of change

5.3％

41.3％

45.5％

47.0％

－

5

Economic Trend：New coronavirus etc. had a big impact
Net sales YoY(%)

Department store(fine arts/jewelry/precious metals)

500

KOMEHYO Net sales

450

Nikkei Stock Average(monthly closing price)400

The COVID-19
4th wave

Stock Price（yen）
30,00028,000

The COVID-19
1st wave350

26,00024,000

300
250
200

The COVID-19
2nd wave

150

The COVID-19
3rd wave

22,00020,00018,00010010050

Tax hike

0

16,000

FY2022
14,000(Source：JAPAN DEPARTMENT STORES）

6

Overview of income statement
FY2020 1Q

FY2021 1Q

FY2022 1Q

Net sales

12,4397,861

14,1626,300

180.1%

Gross profit

3,421

1,888

3,985

2,097

211.1%

27.5％

24.0％

28.1％

+4.1pt

－

3,328

2,748

3,476

727

126.5%

92

△860

508

1,369

－

0.7％

△10.9％

3.6％+14.5pt－

Ordinary income

81

△937

515

1,452

－

Net income attributableto owners of parent

49△1,229

337

1,566

－

(百万円)

Gross profit margin
SG&A expenses

Operating income

Operating profit margin

Change※YoY※※Figures for the first quarter under review after the application of the Accounting Standard for Revenue Recognition and figures
for the first quarter of the previous fiscal year before its application are compared.

7

Operating income increase and decrease factor
Successful efforts under the under COVID-19, sales increased, the market price of corporate
auctions, Gross profit margin increased due to rise, etc., and operating income increased
significantly due to expense control, etc.

Gross Profit

SG&A Expenses

margin increase

increase

Operating income

+584

△727

(Millions of yen)

508

Sales amountincrease'21.3-1Q△ 860+1,513

Increase in general and administrative
expenses such as land rent
△311
An increase in personnel expenses for
temporary store shutdowns and othermeasures△269
Increase in selling expenses such as
advertising expenses△157
Rent and personnel expenses incurred
during temporary store shutdown
recorded as extraordinary expenses +9'22.3-1Q

Operating income（+1,369）8

Changes in selling, general and administrative expenses
SG&A ratios declined due to efficiency-oriented advertisements.
SG&A expenses to sales ratio(%)
26.8

35.0

24.5
(Millions of yen)
1,388

1,310

General and administrative expenses +310
・Increased land rent due to reduced
temporary store shutdown

1,077

1,393

1,542

Personnel expenses +259
・Increased Personnel expenses due to reduced
temporary store shutdown

545

Selling expenses +157
・Increase in advertising expenses, etc.

1,282

624

388

FY2020-1Q FY2021-1Q FY2022-1Q
9

Non-operating income(loss) / Extraordinary income(loss)
Foreign exchange gain 13
Commission income
1
Dividend income
1
Other
3

Non-operating loss 12

Non-operating income 19

Interest expenses 10
Other
1(Millions of yen)

Grant income
10Gain on sale of fixed assets 3

Extraordinary loss 11

Extraordinary income 13

Loss due to temporary closure 9
Loss on retirement of fixed assets 1

10Balance sheet overview(Millions of yen)

FY2021

FY2022 1Q

27,28626,328△957

Cash and deposits

10,5387,084△3,454

Products

12,64915,085+2,435

Other current assets

4,097

4,158

+61

Non-current assets

10,116

10,143+27

Total assets

37,40236,471△930

Liabilities

18,955

17,644△1,311

14,746

13,956

△789

4,209

3,687

△521

Net assets

18,446

18,827+380

Liabilities andNet Assets

37,40236,471△930

Current assets

Interest-bearing liabilities

Other liabilities

Change→Normalization of cash on hand as aprecaution against COVID-19→Merchandise increased with improved
purchases from individuals.

→Borrowings decreased with the normalizationof cash on hand.
→Attributable to an increase in retained
earnings and other factors

11Overview by segment
In the brand / fashion business, individual purchases are strong and the market price of corporate
auctions is rising, and in the tire / wheel business, custom products are strong.
FY2020 1Q

FY2021 1Q

FY2022 1Q

Change11,701

7,137

13,2776,140

186.0％

Operating income

184

△823

472

1,295

－

Operating margin

1.6％

－

3.6%

－

－

Net sales

716

711

864

153

121.5％

Operating income

△95

△33

△20

13

－

Operating margin

－

－

－

－

－

Net sales

24

16

84

67

513.1％

Operating income

3

△3

25

28

－

Operating margin

15.5％

－

29.8%

－

－

(Millions of yen)
Net sales

YoY

Brand
FashionTire and
Wheel
Real estateleasing※Figures for the first quarter under review after the application of the Accounting Standard for Revenue Recognition and figures
for the first quarter of the previous fiscal year before its application are compared.

12

Purchase from individual customers (Group total)
The purchase price per customer has increased due to the rise in the market price of watches andbrand bags.
109

Number of stores
93

94

5,599

96

98

6,754

6,312

FY2021 3Q

FY2021 4Q

7,574

Purchase fromindividual customers(Group total)(Millions of yen)

2,535

FY2021 1Q

FY2021 2Q

FY2022 1Q※The individual purchase amount is the amount purchased from an individual customer through the following route.
・Purchasing at stores
・Purchasing at visited sites
・Purchasing at events (KOMEHYO)
・Purchasing using home delivery services (KOMEHYO)

13

Changes in corporate auction trade volume
Hold the online bidding and the live auction method,trade volume increased due to rising prices of watches and brand bags
Number of registeredmembers

2,743

6,786

2,591
7,421

2,755

2,972

7,151

Trade volume
7,947 (Millions of yen)
JBA

3,518
KOMEHYO
auctionFY2021 1Q

FY2021 2Q

FY2021 3Q

FY2021 4Q

FY2022 1Q※KOMEHYO auction：The online bidding method※K-BRAND OFF：Japan Brand Auction(JBA)TOKYO－the real bidding method
Japan Brand Auction(JBA)KANAZAWA－the live auction method
JBA Live Net Auction－The online bidding method

14

EC(KOMEHYO)With proposals for 1on1 customer service, EC replacement, and contact center operation
The composition ratio of orders increased compared to the same period of the previous year
48.2

E-commerce-induced sales rate：EC Sales as a Percentage of Retail Sales
43.7
41.6
41.0
39.4

2,006

2,211

2,176

2,021

E-commerce
induced sales(Millions of yen)

1,253

KOMEHYO website
Back orders
Others

FY2021 1Q

FY2021 2Q

FY2021 3Q

FY2021 4Q

FY2022 1Q※KOMEHYO’s online store: Make a purchase by directly clicking the KOMEHYO online store or by making a phone callto a contact center and receiving a customer service.
Purchasing from a catalog: Make a purchase after choosing a product from a catalog at the KOMEHYO online store,
having the product delivered to a nearby KOMEHYO store and making sure of the product in person.
Other companies’ websites: Make a purchase at a store KOMEHYO set up at an Internet sales site operated byanother company.

15

１．Overview of Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2022
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2022

３．Reference Information (Company Profile, etc.)

16

Stores：KOMEHYO 63 stores（‘21.6)
The purchasing center opened 8 stores in the first quarter out of the 30 stores targeted for annual
store openings.

〔Overseas〕〔Domestic〕
Flagship stores 5 stores
Stores annexed withsales facilities 11 stores
Purchasing Center
36 stores

Thailand (Bangkok)
2 stores
Purchasing Center
Versawalk NISIOKOMEHYO@Central Bangna(Bangkok, Thailand)

China (Shanghai)
1 store５stores
３stores

Purchasing Center
Sapporo Tokyu Department Store

KOMEHYO Shanghai(Shanghai, China)

17

Stores：BRAND OFF 25 stores（‘21.6)
Opened 3 purchasing centers in the first quarter and the Tsim Sha Tsui store in Hong Kong

〔Domestic〕〔Overseas〕

Flagship stores 2 stores

Stores annexed with

HONG KONG 8 stores

Kanazawa Main StoreTAIWAN

3 storesThailand1 stores

Tsim Sha Tsui store (HK)sales facilities 2 stores（Including FC 1 store）

Purchasing Center9 storespurchasing center
KANAZAWA NISI store

Tuen Mun V City store
(HK)

18

Cross-border EC
Focusing on cross-border e-commerce for customers in China under COVID-19
Opened "BRAND OFF Overseas Flagship Store" at T-mall Global in June

T-mall Live

金沢本店

19

WORM(sneakers)・Shellman(Antique clock, etc.)Stores
Domestic 1 store

WORM TOKYO

WORM OSAKA‘21.7 Opened

Domestic 7 stores

Ginza main store

Ginza main
store
銀座本店

20

Assessment of authenticity and model numbers through AI
Test introduction expanded to KOMEHYO Nagoya main store and
16 Purchase centers in the Kanto area - aim to introduce it to all stores this term

【Purpose of development】
Formation of reuse market which customers can use
with peace of mind
・Improvement of communication with customers
・Elimination of counterfeit goods
・Global expansion
・Quicker development of assessors【AI development coverage※】approximately90％
Other
Prada
HermesGucci
ChanelLouis
Vuitton※KOMEHYO brand bag purchase price base21

Craft／U-ICHIBAN Stores

Domestic 10 stores
Nakagawa store
4 stores with "URBAN OFF CRAFT"

1 store with " EURO STYLE Craft "Nagoya dome WEST store

Domestic 4 stores(Closed: Kagamigahara store, Inazawa store,
Okazaki store)

Omiya Bypass Store

22

Tire・Wheel Initiatives【Craft】【4×4 Engineering Services】

Success in capturing custom-segment demand for wheels

All items such as wheels and suspensions are performing
and other supplies.
well, including overseas.
4WD / SUV specialty store "URBAN OFF CRAFT" is doing wellCountry suspension kit
23

１．Overview of Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2022
２．Initiatives for the First Quarter of the Fiscal YearEnding March 31, 2022

３．Reference Information (Company Profile, etc.)24Corporate Profile
Company name

Komehyo Holdings Co., Ltd.

EstablishedMay 1979

Head Office

3-25-31 Osu, Naka-ku, Nagoya

Representative
Capital※Transition to holding company system in October 2020

President, Representative Director: Takuji Ishihara
1,803 million yen

No. ofemployees

Consolidated: 953 Non-consolidated: 16 (As of June 2021)

Business
activities

Groupwide corporate planning, management and marketing, and real estate business

Fiscal year-end
Stock

March
Second Section, Tokyo and Nagoya Stock Exchanges(Securities code: 2780; Unit: 100 shares)25Mission
Komehyo Holdings is necessary for a sustainable recycling society.
It acts as a relay point in the connection of “people,” “things,” and “society.”
We will strive to connect “good quality" and "value" to the future.

We respect people for making products, thank people for providing
products for use by other people, and make people who reuse suchproducts happy, and by doing so, create an empathy-based recycling
society.
We develop a concept of environmentally and sociallyconscious recycling into a culture.

We listen and empathize with what others say.
We value the importance of talking.
We take action proactively.
We are not afraid of creating change.
26

We will pass on the value of products
through environmentally and socially conscious
recycling instead of just reusing.。
Maintenance, remaking, reorganizing andhuman relationships
Environmentally and socially conscious recycling,
while it means reusing products, aims to pass down
the concept of upcycling that enhances the value of
products, instead of just downcycling products.
As more people share common value with an eye
toward the creation of a sustainable society going forward,
we will contribute to establishing such a society
by promoting the concept of respecting producers andusers while simultaneously sharing such concept with as many people as possible.
27

Corporate History●Acquired Eve Corporation Co.,Ltd.
●Established Auto Parts KOMEHYO(currently AUTO PARTS JAPAN)●Established KOMEHYO HONG KONG LIMITED●Transition to a holding
company structure●Opened the second
store in Bangkok,
Thailand● Acquired CRAFT Co., Ltd.
●Established KOMEHYO Auction●Opened KOMEHYO Shoten,
a 5-tsubo used clothing store, in Osu, Nagoya

1979

1987

1996

2000

2003

2004

2011

2012

2013

2017

2018

2019

2020

●Opened KOMEHYO Ginza Store●Acquired Shellman Co.,Ltd.
●Listed on the second section of the Tokyo●Established SAHA
and Nagoya stock exchanges
KOMEHYO COMPANY● Listed on JASDAQ
LIMITED● Established
KOMEHYO Co., Ltd.

●Expanded into Kansai(KOMEHYO Shinsaibashi Store)●Started online sales●Expanded into Tokyo(KOMEHYO Purchasing Center Dogenzaka)● Changed the Japanese spelling of
its name from 米兵 to コメ兵●Acquired Four by four engineering service
Co.,Ltd●Retail store KOMEHYO opened in Bangkok,
Thailand●Acquired K-BRAND OFF Co.,Ltd and two
overseas subsidiaries

28

Business system diagrampurchase

Sales

StoresHome delivery
Purchasing

WEB

Purchasing at
eventsPurchasing at
visited sites

New and used goods business

General customers, etc.

General customers, etc.

StoresUsed goods business

29

Medium-term management target (until FY2024)(Millions of yen)

FY2022(Revised)

FY2023

FY2024

1H

Full year

Full year

Full year

Net sales

30,00063,20065,00070,000Operatingincome

1,020

2,190

2,100

2,800

Operatingprofit margin

3.4％

3.5％

3.2%

4.0%

1,000

2,110

2,000

2,700

680

1,470

1,300

1,800

Ordinary income

Net income
attributableto owners ofparent※ Changes were made to business plans for the first half and the fiscal year announced at the beginning of the fiscal year.
No change in medium-term plan.

30

Sales plan
70,00057,510(Millions of yen)

50,96040,212

43,19945,90363,20065,00050,72345,497
40,134FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024※ Changes were made to business plans for the first half and the fiscal year announced at the beginning of the fiscal year.
No change in medium-term plan.

31

Operating Profit Plan
7.5

Operating Income
Margin (%)

7.2
6.1

2,999

3.6

3,129
2,789

3.7

3.5

2.1
0.5

1,625

297
FY2015FY2016FY2017FY2018Operating Income(Millions of yen)

1,860

832

FY20141.2

3.2

FY2019FY2020

2,190

2,100

FY2022

FY2023

4.0

2,800

590

FY2021

FY2024※ Changes were made to business plans for the first half and the fiscal year announced at the beginning of the fiscal year.
No change in medium-term plan.

32

Ordinary income/Net income Plan
(Millions of yen)

2,988

Net income
attributableto owners ofparent

3,162
2,742

2,110

2,040
1,834

2,700

1,826

1,696

1,610
1,073
815

1,470
1,009

Ordinary
income

2,000

1,800

1,300

431

355

9 △ 234△ 595

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024※ Changes were made to business plans for the first half and the fiscal year announced at the beginning of the fiscal year.
No change in medium-term plan.

33

Changes in ROA/ROE
（％）
13.7

ROA

ROE

13.2
11.1

12.9

12.8
9.7

6.1
3.3

5.8

6.3

5.2

1.2
0.0

2.0
△ 1.2

△ 3.2
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY202134

Changes in gross merchandise value(100 millions of yen)

510

592

KOMEHYO auction sales aremainly membership fees, andvolume is not included in sales.

648

748

666

192
FY2017FY2018FY2019FY2020

FY2021

FY2022-1Q

Total distribution volume (GMV)
is a number that takes into
account the volume of theauction and measures its
influence in the reuse market.
We think it is one of theindicators.

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

35Medium-term Management Plan
Brand・Fashion business
１．Strengthening of the scheme ofpurchasing from individuals and retailing

Tire・Wheel business１．Stabilization and strengtheningof profitability

２．Strengthening of the corporate business
２．Strengthening of new products.
３．Development of overseas businesses
and strengthening of reuse technologies.
BtoC

BtoB

Overseas
Manufacturer

Primary
distribution

Secondary
distribution36Medium-term Management Plan : Brand・Fashion
１．toC - Strengthening of the scheme of purchasingfrom individuals and retailing・Increase the number of purchasing channels (acceleration of
new store openings and facilitation of FC and alliances).
・Raise the capability of existing stores and improving CRM
through OMO with a focus on LTV.
・Facilitate the upcycling of purchased products.

２．toB - Strengthening of the corporate business・Strengthen and streamline the auction business.
・Accelerate collaboration-based businesses.
・Acquire new business partner companies.

３．Growth drivers - Development of overseas
businesses and strengthening of reuse technologies.
・Drive growth in overseas channels (enhance profit levels).
・Utilize data on products and customers among the groupcompanies.
・Enhance purchasing channels through the utilization of AI.

37

Medium-term Management Plan : Tire・Wheel
１．Collaboration among the three companies – Stabilizationand strengthening of profitability
・Strengthen specialty stores developed according to customer preference
and sales of which are not affected by the weather.
・Strengthen the sale and purchase of used tires and wheels.
・Implement inventory management utilizing databases and establish priority categories.
Profitability

２．Growth drivers - Strengthening of new products.

・Facilitate the planning and manufacturing of automobile
parts such as wheels.
・Step up efforts to supply product to global markets.
・Establish business portfolios with a focus on profitability.

Growth image of 3 companies
Growth potential

38Sustainability: Promote "relay use"
【 Remade jewelry shop 】【KOMEHYO Kobe-sannomiya store】

A shop opened for a limited time ina department store to sell our own
brand of gemstone jewelry (‘20.10)

Placement of antique furniture and use ofenvironmentally conscious materials in
more than 80% of the interior【KOMEHYO AOYAMA】
Store annexed with a gallery of Mr. Mago
Nagasaka, a sustainability-focused artist.
（Relocation and opening in February 2021 after renewal）(Relocation and opening in February 2021 after renewal)

39

Shareholder return：
Annual dividend for this term is 24 yen (planned)
92.4

Payout ratio(%)

36.2
24.8

29.3

23.0

Fiscal year-end dividend

16.6

7

7
5

15
7
7

15.0

34.7
17.9

Interim dividend

Dividends (Yen)

5

15.5

30.6

19.4

8
8

(planned)

14

15

15

15

16

8

10
9

12
8

11

14

15

15

15

16

16
8

12

FY2009FY2010FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022

40

IR contact

IR・PR Department
Phone：+81-52-249-5366
E-mail：ir@komehyo.co.jp
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, andopinions of KOMEHYO Co., Ltd. are forward-looking statements subject to various risks and uncertainties.
These statements are prepared based on assumptions of the management of Komehyo Holdings 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 theirown discretion.

41