Tsi Holdings Co., Ltd. · TSE:3608
Tsi — Q3 FY2024 Earnings Presentation
43 slides from Tsi's earnings presentation, Jan 15, 2024
Slide 1: Results Briefing: Q3RD (March to November 2023)
Results Briefing: Q3RD (March to November 2023) Results of 2024 Ending Feb. 15th January 2024 Security code：3608
Slide 2: Agenda
AGENDA 1 Results Overview 2 About Business Situation by Channel 3 Brands Overview 4 Full-year Forecast 5 Initiatives in each area of TIP25 6 Initiatives for management that emphasizes human capital 7 Initiatives related to the SDGs 8 Reference Data
Slide 3: Results Overview
eco . see 1 Results Overview
Slide 4: Q3RD Results of 2024 Ending Feb.: Executive summary
4 Q3RD Results of 2024 Ending Feb. : Executive summary [Summary of operations during the third quarter] ■ Change in Market environment Due to the reclassification of COVID-19 into Class 5 in May 2023, demand for outing recovered. With the subsequent lifting of the ban on group tours to Japan and dep
Slide 5: Highlights of Results for Q3RD of Fiscal Year Ending in February 2024
5 Highlights of Results for Q3RD of Fiscal Year Ending in February 2024 In addition to the fallout from the loss of the COVID-related special demand, the initial marketing of autumn/winter merchandise did not advance as initially planned because of the lingering summer heat and the warm winter, and
Slide 6: Highlights of Results: Gross Profit and SG&A Expenses
6 Highlights of Results for Q3RD of Fiscal Year Ending in February 2024 UNIT: Billion yen Gross Profit > Gross Profit 58.0% 56.9% 56.2% 300 56.0% 55.1% 60.0% • Foreign exchange fluctuations and sharp rises Q3RD 250 in the prices of raw materials Gross Profit • Increase in price reductions due to gro
Slide 7: Net Income Impact Items for Q3RD Results
7 Net Income Impact Items for Q3RD Results of 2024 Ending Feb. Ordinary income, including ¥340 million in non-operating income/loss such as dividend income and real estate revenue, was ¥2.03 billion. Net income for the first half of the term, including ¥520 million in extraordinary income/loss such
Slide 8: About Balance Sheet
8 About Balance Sheet > Cash and Deposits 【 Comparison with the previous term 】 Affected by increases in inventory assets and the Cumulative Q3RD 2023 1ST Half 2024 Ending Cumulative Q3RD 2024 Ending Feb. Ending Feb. Feb. repayment of Long-term borrowings totaling , cash Composition Composition Comp
Slide 9: About Business Situation by Channel
２ About Business Situation by Channel
Slide 10: Sale Trends by Channel for Q3RD Results
10 Sale Trends by Channel for Q3RD Results of 2024 Ending Feb. The number of customers who visited real stores rose as demand for outing and inbound tourism grew. Sales for non-department stores were 102.9% of the previous term’s level. On the other hand, sales for department stores, EC, and oversea
Slide 11: E-commerce in Q3RD Results of 2024 Ending Feb.
11 E-commerce in Q3RD Results of 2024 Ending Feb. In the third quarter alone, with EC sales at ¥9.88 billion, or 87.5% of the previous term’s level, the Company failed to expand sales in this sector, leaving certain issues unsolved. The Company will review its sales strategy and digital marketing me
Slide 12: Brands Overview
Brands Overview moe OLD | NGS
Slide 13: Individual Overview of Major Brands in Q3RD
13 Individual Overview of Major Brands in Q3RD Results of 2024 Ending Feb. Due to the effects of the lingering summer heat and the warm winter, most of the major brands struggled, but among them, sales for MARGARET HOWELL, AVIREX, and STUSSY continued to be strong. Other than the major brands, brand
Slide 14: About Full-year Forecast
eco see 4 About Full-year Forecast
Slide 15: Recent situation (cumulative results for the third quarter)
15 Recent situation (cumulative results for the third quarter) Cumulative Q3RD Cumulative Q3RD Changes in sales during the term ending February 2024 Net Sales Operating Profit (compared to the initial budget) 114.85 Billion Yen 2.22 Billion Yen 105.0% Third quarter vs. Budget －6.33 billion yen vs. B
Slide 16: Revision of forecasts for the entire term ending February 2024
16 Revision of forecasts of financial results for the entire term ending February 2024 Following the consolidated cumulative financial results for the third quarter, we hereby announce that we decided to revise the forecasts of consolidated financial results for the entire term ending February 2024,
Slide 17: Current challenges and response policy
17 Current challenges and response policy Current challenges Response policy Review of the plan Basic profitability has not been improved The management plan with capital costs and stock prices taken into account, which is to be announced in April, should be updated. This includes updating • As an O
Slide 18: Shareholder returns
18 Shareholder returns ※2 The amount of dividend for the term ending February 2024 will remain at the same level as previously forecast, at ¥15 per share. 配当金 1 １株あたり配当金 Dividends 15 15 0.8 Dividend payout ratio 配当性向(Consolidated) 10 0.6 10 44% 42.9％ 28% 0.4 5 5 0.2 0 0 0 Plan for 2021年2月期 FY Ending
Slide 19: Initiatives in each area of TIP25
５ Initiatives in each area of TIP25
Slide 20: Medium-term management plan TIP25
20 TSI Holdings Group’s medium-term management plan “TIP25” Announced on April 14, 2022 Medium-term management plan materials reposted H e n c e , t o l e a p t o w a r d 2 0 2 5 , w e h a ve u p d a t e d T I P 2 4 , t o t u r n i t i n t o t h e T S I I n n o va t i o n P r o g r a m 2 0 2 5 ( T I
Slide 21: TIP25 4 Divisions (domains)
21 TIP25 4Div.(domains) Announced on April 14, 2022 Medium-term management plan materials reposted Wellness & Lifestyle 1 Street & Culture 2 Wellness & lifestyle Street & culture Create fashion entertainment Nurture street culture and Athleisure Street that has a positive impact create fashion Outdo
Slide 22: TIP25 4 Divisions / Brand layout diagram
22 TIP25 4Div.(domains) / (Brand layout diagram) Wellness & Lifestyle 1 Street & Culture 2 Wellness & Lifestyle Div. Street & Culture Div. 1. PEARLY GATES 10. MHL. 1. STÜSSY 9. B’2nd 2. PGG 11. Dice&Dice 2. HUF 10. BEAVER 3. MASTER BUNNY EDITION 12. SEVEN BY SEVEN 3. UNION 11. LHP 4. Jack Bunny!! 13
Slide 23: Initiatives in each area of domains: Wellness & Lifestyle, Street & Culture
23 Initiatives in each area of domains Wellness & Lifestyle Street & Culture Creating attractive communities Platform for play rooted in the street spirit ¥36,618 million ¥40,866 million Net sales Yo Y c h a n g e 32.4% Net sales Yo Y c h a n g e 35.6% 売上高 Ratio to 売上高 Ratio to ¥36.61 100.3 構成比 tota
Slide 24: Initiatives in each area of domains: Fashion Capital, Digital Generation
24 Initiatives in each area of domains Fashion Capital Digital Generation Services that respond constantly to market trends Continuously expanding content to win over the next and changes ¥26,585 million generation of customers ¥8,916 million 23.6% 8.0% Net sales Yo Y c h a n g e Net sales Yo Y c h
Slide 25: Promoting DX to lead the next generation of business
25 Promoting DX to lead the next generation of business In an effort to make business processes more efficient and sophisticated, accelerate the pace of business, and achieve further growth and development, TSI Holdings has tied up with several businesses to advance projects in multiple areas. Becom
Slide 26: Testing corporate product experience in the Metaverse Ryugukoku
26 Launching the testing of corporate product experience in the virtual space of the Japan Metaverse Economic Zone “Ryugukoku®” The Company participated in the Ryugukoku® project as a Illustration of 3D costume provided by TSI fashion entertainment company to design new customer experience. The worl
Slide 27: Putting a SaaS recruitment provider under TSI Holdings Group control
27 Putting a provider of SaaS recruitment services specializing in apparel business under the control of the TSI Holdings Group Services The Company plans to put READY TO FASHION Inc. (representative: Satoshi Takano), which operates SaaS recruitment services specializing in apparel Social media for
Slide 28: Providing comprehensive personnel solutions in the fashion industry
28 Providing comprehensive personnel solutions in the fashion industry The TSI Holdings Group aims at creating opportunities for diverse human resources to play an active role in the Past Future fashion industry and enriching the lives of people who work in the fashion industry and those who enjoy f
Slide 29: Initiatives for management that emphasizes human capital
６ Initiatives for management that emphasizes human capital
Slide 30: Initiatives for management that emphasizes human capital
30 Human Capital Initiatives for management that emphasizes human capital TSI Holdings is providing support to improve the skills of employees and encourage their development. The Company aims at developing independent human resources who support the future of TSI Holdings. Designer development prog
Slide 31: Initiatives for management that emphasizes human capital
31 Human Capital Initiatives for management that emphasizes human capital TSI Holdings is striving to improve its systems to create a work environment that enables employees to work easily and comfortably. In response to diversifying work styles, the Company aims at raising the level of employee eng
Slide 32: Initiatives related to the SDGs
７ Initiatives related to the SDGs
Slide 33: Capital and business alliance agreement with SynCom Agritech
33 SDGs Concluding a capital and business alliance agreement with SynCom Agritech As part of its strategy for raw materials “Material Innovation,” TSI Holdings recently entered into a capital and business alliance agreement with SynCom Agritech Co., Ltd., which cultivates organic cotton while paying
Slide 34: As a member of society, TSI Holdings contributes through business activities
34 SDGs As a member of society, TSI Holdings contributes to it through business activities In order to achieve its purpose “Through the power of fashion entertainment, we will create empathy and social value around the world,” TSI Holdings is contributing to society through business activities. Case
Slide 35: A company creating fashion entertainment
Nurture worldwide empathy and social value through the power of fashion entertainment. A company creating fashion entertainment
Slide 36: Reference Data
８ Reference Data
Slide 37: Highlights of Q3RD Results: Overview
37 Highlights of Q3RD Results for FY Ending Feb. 2024 Unit:Million Yen Q3RD 2023 Ending Overview Feb. Q3RD 2024 Ending Feb. (Revenue recognition standards) Composition Composition Y/Y Results Rate (% ) Results Rate (% ) Y/Y (%) Change Net Sales 43,318 +100.0 41,578 +100.0 -1,739 96.0 Gross Profit 24
Slide 38: Highlights of Cumulative Q3RD Results: Overview
38 Highlights of Cumulative Q3RD Results of 2024 Ending Feb. Unit:Million Yen Cumulative Q3RD 2023 Overview Ending Feb. Cumulative Q3RD 2023 Ending Feb. (Revenue recognition standards) Composition Composition Y/Y Results Rate (% ) Results Rate (% ) Y/Y (%) Change Net Sales 115,406 100.0 114,857 100.
Slide 39: Net Sales Per Channel
39 Highlights of Cumulative Q3RD Results for FY Ending Feb. 2024 Net Sales Cumulative Q3RD 2023 Cumulative Q3RD 2024 Ending Feb. Ending Feb. Per Channel Composition (Revenue recognition standards) Results Composition Results Composition Y/Y (%) Rate Y/Y (Million yen) Rate (%) (Million yen) Rate (%)
Slide 40: Brands Overview
40 Highlights of Cumulative Q3RD Results for FY Ending Feb. 2024 Brands Overview Cumulative Q3RD 2023 Ending Feb. Cumulative Q3RD 2024 Ending Feb. Y/Y (Revenue recognition standards) Composition Gross Profit Composition Gross Profit Gross Profit Sales Rate (% ) Ratio (% ) Sales Rate (% ) Ratio (% )
Slide 41: Domestic Monthly Sales Information
41 Highlights of Cumulative Q3RD Results for FY Ending Feb. 2024 Domestic Monthly Sales Information Cumulative Q3RD 2023 Cumulative Q3RD 2024 Ending Feb. Ending Feb. All Stores ：101.3％ All Stores ：100.7％ Existing Stores ：102.6％ Existing Stores ：104.7％
Slide 42: The Number of Stores
42 Highlights of Cumulative Q3RD Results for FY Ending Feb. 2024 The Number of Stores Cumulative Q3RD 2023 FY Ending Store Store Y/Y Q3/Q4 Q3RD 2024 Ending Feb. Feb. 2023 Open Close Change Change Ending Feb. Domestic 779 738 +65 -61 742 -37 4 Apparel Overseas 29 29 +1 - 30 1 1 Total 808 767 +66 -61
Slide 43: Descriptions about future within this document are based on the information that the company
Descriptions about future within this document are based on the information that the company obtains on the date of this report and certain assumptions deemed to be reasonable. Actual earnings may differ materially from various future factors.