Tsi Holdings Co., Ltd. · TSE:3608

Tsi — Q2 FY2018 Earnings Presentation

20 slides from Tsi's earnings presentation, Oct 11, 2017

  1. Slide 1: Results Briefing: Q2ND (March to August 2017) Results of 2018 Ending February

    Results Briefing: Q2ND(March to August 2017) Results of 2018 Ending February 2017.10.11 Copyright© TSI HOLDINGS CO.,LTD. All Rights Reserved.

  2. Slide 2: I. Results Overview

    I. Results Overview The amounts given in this material are rounded down to the nearest million yen Copyright© TSI HOLDINGS CO.,LTD. All Rights Reserved. 1

  3. Slide 3: Consolidated Financial Highlights - Profit and Loss

    Consolidated Financial Highlights -Profit and Loss- (Unit:Million yen) Q2ND Q2ND 2017 Ending Feb. 2018 Ending Feb. Composition Composition Y/Y Results Results Y/Y (%) Rate (%) Rate (%) Change Net Sales 77,181 100.0 73,831 100.0 -3,349 95.7 Gross Profit 42,214 54.7 40,125 54.3 -2,088 95.1 SG&A Expens

  4. Slide 4: Brands Overview

    Brands Overview (Unit:Million yen) Q2ND Q2ND Y/Y 2017 Ending Feb. 2018 Ending Feb. Gross Composition Gross Profit Composition Gross Profit Sales Sales Profit Sales (%) Rate (%) Ratio (%) Rate (%) Ratio (pt) Ratio (%) 1. nano・universe 11,240 14.6 52.9 10,671 14.5 51.3 94.9 -1.5pt 2. NATURAL BEAUTY BA

  5. Slide 5: II. Progress of Growth Strategy

    II. Progress of Growth Strategy Copyright© TSI HOLDINGS CO.,LTD. All Rights Reserved. 4

  6. Slide 6: Overview of Medium-Term Management Plan

    Overview of Medium-Term Management Plan 2018 Ending 2019 Ending 2020 Ending 2021 Ending 2021 Ending Feb. Feb. Feb. Feb. Feb. (1)Improve Operational Processes • BPR,SCM,structural reform of low profitability companies, Introduction of RFID, Introduction of core system to Profitability Basis Enhanceme

  7. Slide 7: Progress of Medium-Term Management Plan - Enhancement of Profitability Basis

    Progress of Medium-Term Management Plan 1 -Enhancement of Profitability Basis- Measures Implemented during Q2ND 2018 Ending Feb and Action Plans for Future • 6 subsidiaries put into place a BPR-based gross profit improvement measure including trials. • Began simulations of appropriate production qua

  8. Slide 8: Progress of Medium-Term Management Plan - Acceleration of Growth Strategy

    Progress of Medium-Term Management Plan 2 -Acceleration of Growth Strategy- Measures Implemented during Q2ND 2018 Ending Feb and Action Plans for Future • Q2ND sales was 112.9% Y/Y and e-commerce ratio rose from 14.2% to 16.8%. • nano･universe marked 94.3% Y/Y due to digestion of old inventory but g

  9. Slide 9: Progress of E-commerce Business

    Progress of E-commerce Business Basic Policy: Enhance mobile EC environment and pursue leading-edge digital marketing  Introduction of smartphone applications → Increase from Mobile(MB) Access 2017.Ending Feb. Q1ST 2018 Ending Feb. Q2ND 2018 Ending Feb. MB PC 25.7% 29.3% 26.5% Access Tool Breakdown

  10. Slide 10: Implementation of Victory Formula for E-commerce Indicated through BPR

    Implementation of Victory Formula for E-commerce Indicated through BPR No.1 No.2 Set sales target through Set MD plan and assign top-down approach person in charge of e-commerce to achieve sales target No.3 No.4 No.5 Increase number of e-commerce Increase purchase rate Prevent stockout at e-commerce

  11. Slide 11: A.I. Based Demand Forecast: Joint Research with COLORFUL BOARD INC.

    A.I. Based Demand Forecast : Joint Research with COLORFUL BOARD INC.  Forecast demand by using external data such as on media and weather in addition to internally-held data on purchase histories and customer information, automatically computing optimal quantities of a first-time order placement an

  12. Slide 12: III. Topics for Corporate Management

    Ⅲ Topics for Corporate Management Copyright© TSI HOLDINGS CO.,LTD. All Rights Reserved. 11

  13. Slide 13: Formulation of Company Group Vision and Group Code of Conduct

    Formulation of Company Group Vision and Group Code of Conduct In order to penetrate the management philosophy, TSI Holdings formulated a new “Company Group Vision” showing the direction of business realization and “Group Code of Conduct” summarizing the values and ways of thinking that all employees

  14. Slide 14: Treasury Stock Acquisition and Retirement of Shares

    Treasury Stock  Acquisition and Treasury Stock Disclosed Date Purchased Share Total Amount Acquired Acquired Date 2015/11/10 4,000,000 3,382 million yen From 11/16 to 2/15 2016/4/13 2,000,000 1,403 million yen From 4/14 to 5/16 2016/7/13 2,000,000 1,234 million yen From 7/14 to 8/3 2017/1/13 1,968,

  15. Slide 15: IV. Reference Data

    Ⅳ Reference Data Copyright© TSI HOLDINGS CO.,LTD. All Rights Reserved. 14

  16. Slide 16: Domestic Monthly Sales Information

    Domestic Monthly Sales Information Q2ND 2017 Ending Feb. Q2ND 2018 Ending Feb. 110% All Stores: 93.4% All Stores Existing Stores All Stores: 95.6% Existing Stores：96.7% Existing Stores: 100.5% 106.1 105.6 105% 104.3 103.5 103.5 103.5 102.9 102.9 102.9 102.8 101.8 101.8 100.3 100% 99.2 99.1 99.1 99.0

  17. Slide 17: Net Sales Per Channel

    Net Sales Per Channel (Unit:Million yen) Q2ND Q2ND 2017 Ending Feb. 2018 Ending Feb. Composition Composition Composition Rate Results Results Y/Y (%) Rate (%) Rate (%) Y/Y Change Department Stores 16,385 21.2 14,390 87.8 19.5 -1.7pt Commercial Facilities(*1) 39,414 51.1 37,217 94.4 50.4 -0.7pt E-Com

  18. Slide 18: Store Distribution

    Store Distribution Q2ND 2017 Ending Q2ND 2018 Ending 2017 Ending Feb. Store Open Store Close Feb. Feb. # of Stores 1,235 1,143 +34 -66 1,111 Domestic Change -146 -88 -32 # of Stores 214 195 +19 -34 180 Overseas Change -8 -2 -15 # of Stores 1,449 1,338 +53 -100 1,291 Total Change -154 -90 -47 *Number

  19. Slide 19: Glossary

    Glossary Page Word/Phrase Definition 5 BPR Stands for "Business Process Reengineering", which improves profitability by drastically revising and redesigning the existing operation flows and contents. SCM Stands for "Supply Chain Management", which is a system for creating profit by reviewing the ent

  20. Slide 20: Cautionary Statement

    Cautionary Statement 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. Copyright© TSI HOLDINGS CO.,LTD. Al

TSI Holdings — Q2 FY2018 Earnings Presentation on 6ix