Tsi Holdings Co., Ltd. · TSE:3608
Tsi — Q1 FY2022 Earnings Presentation
40 slides from Tsi's earnings presentation, Jul 5, 2021
Slide 1: Results Briefing: Q1 Results of FY Ending Feb. 2022
Results Briefing: Q1ST (March to May 2021)Results of 2022 Ending Feb. 5th July, 2021
Slide 2: Market Trends for Q1 Results
1 Market Trends for Q1ST Results of 2022 Ending Feb. Market movements are still unclear. Amidst the prolonged Covid-19 pandemic, risks, such as states of emergency and store closures/shortening of open hours, could yet directly impact business performance Prospects for a gradual market recovery Neve
Slide 3: Covid-19 Impact on Q1 Results
2 Covid-19 Impact on Q1ST Results of 2022 Ending Feb. March results were strong. After April, the effects of Covid-19 infections expanded. It gave a big impact on our management such as over 300 stores(about 30% of all stores) forced to close and most of the stores had to shorten business hours beca
Slide 4: What should we be doing and where should we be going right now?
3 Standing position of TIP24※ on Q1ST Results of 2022 Ending Feb. We will not stagnate, but instead continue to confront our What should we be doing and where challenges in order to create new value that will bring future should we be going right now ? happiness to our stakeholders. The happiest In
Slide 5: Agenda
AGENDA 1 Results Overview 2 About Business Situation in Q1ST 3 About Business Situation by Channel 4 About Initiatives Related to Environmental Issues 5 About Balance Sheet and Future Investment Strategy 6 About Full-year Forecast 7 Reference Data
Slide 6: Results Overview
TS! HOLDINGS - ¥ Results Overview
Slide 7: Highlights of Results for Q1 of Fiscal Year Ending February 2022
6 Highlights of Results for Q1 of Fiscal Year Ending in February 2022 Under the current severe market conditions, we will make thorough withdrawals from business, and cut labor costs and selling and administration expenses (SG&A). Accumulation of detailed actions gave us to reach net sales of YoY 15
Slide 8: Operating Profit Transition
7 Operating Profit Transition of 2022 Ending Feb. What with the organizational efficiency by structural reform and what with the refinement of management control, the earnings improved. > Operating Profit The operating performance has reached the highest profit in the last 5 years. Operating profit
Slide 9: Gross Profit/SG&A Expenses for Q1 Results
8 Gross Profit/SG&A Expenses for Q1ST Results of 2022 Ending Feb. > Gross Profit Unit : Billion Yen Gross Profit • Purchasing was suppressed to about 82% compared to 60.0% Gross Profit 275 57.6% 57.4% the previous quarter. 56.6% 58.0% 56.0% • We promoted the sale of products which was lost sales 19.
Slide 10: Net Income Impact Items for Q1 Results
9 Net Income Impact Items for Q1ST Results of 2022Ending Feb. Non-operating income is 0.45 billion yen due to foreign exchange gains, dividend income, real estate income and others. As extraordinary income, fair sale of securities and gain on sale of businesses are 0.51 billion yen, whereas Covid-19
Slide 11: About Business Situation in Q1
2 About Business Situation in Q1ST
Slide 12: Revenue structure by segment for Q1 Results
11 Operating income Revenue structure by segment for Q1ST Results of 2022 Ending Feb. Strong brands such as golf, athleisure and street-casual drove profits. Conversely, brands with a focus on occasion demand and brands which located in metropolitan area continued to be sluggish. Against Plan Result
Slide 13: Initiatives in Strong Business Domains of Golf, Athleisure and Street
12 Initiatives in Strong Business Domains of Golf, Athleisure and Street The brands with uniqueness and high customer engagement were very strong. Sales of 3 brands have grown significantly compared to the year before last and drove profits. The number of new customers increased owing to Collaborati
Slide 14: Innovative Initiatives in Other Domains
13 Innovative Initiatives in Other Domains We will send out new customer value without stagnating by creating new brands and fusing music, art and culture. Exhibition to mark 50th anniversary TV CM of “Nozomi Iijima x Harami- Debut of new brand [mag.by.c] chan” shown for the first time The exhibitio
Slide 15: About Business Situation by Channel
3 About Business Situation by Channel
Slide 16: Sale Trends by Channel for Q1 Results
15 Sale Trends by Channel for Q1ST Results of 2022 Ending Feb. While shrinking compared to year before last, 9.6% of domestic business came from department stores and 41.8% from non- department stores (flagship shops and street-level stores), whereas EC channels and non-apparel products found solidi
Slide 17: E-commerce in Q1 Results
16 E-commerce in Q1ST Results of 2022 Ending Feb. In EC business, we focused on EC sales to take growth to 205.9% compared to year before last. Overseas EC is charging hard thanks to “TACTICS” in USA and “MARGARET HOWELL” in Europe predicting that the battle on Covid-19 is being won. For the first t
Slide 18: Strengthening Approaches to New Hands-on Experiences, Services & OMO
17 Strengthening Approaches to New Hands-on Experiences, Services & OMO Benefits and improvements from digitalizing the work of shop staff Strengthening staff coordination content You can always meet the staff you want to. The number of posts and contents is up 311% compared to Q4 of previous FY – s
Slide 19: nano universe's style of DX efforts
18 Strengthening Approaches to New Hands-on Experiences, Services & OMO nano universe's style of DX efforts Store evolution by utilizing digital. Scoring Ability of Shop Staff Directing customers from EC to stores and strengthening engagement Select fitting item Select store and date and time You ca
Slide 20: About Initiatives Related to Environmental Issues
4 About Initiatives Related to Environmental Issues
Slide 21: Solving Societal Issues Via Environmentally Friendly Initiatives
20 Solving Societal Issues Via Environmentally Friendly Initiatives Solving problems with fashion and technology Developing products that benefit both the environment and customers Proposing ethical fashion using digital technology Challenge to control global warming “FLOML” collaborates with Shimaa
Slide 22: Solving Societal Issues Via Environmentally Friendly Initiatives: Creator's responsibility
21 Solving Societal Issues Via Environmentally Friendly Initiatives Creator's responsibility Reborn what is thrown away for future global environment. Environmentally Friendly Initiatives Reusing waste ingredients for fashion Improvement of soil and water quality “Human woman” uses FOOD TEXTILE of n
Slide 23: Aiming to reduce CO2 throughout the supply chain
22 Solving Societal Issues Via Environmentally Friendly Initiatives Aiming to reduce CO2 throughout the supply chain Formed a sustainable project team, we will do our utmost to improve the internal environment that supports our business. Reduction of plastic by reusing hangers Reducing CO2 by Materi
Slide 24: About Balance Sheet and Future Investment Strategy
About Balance Sheet and Future Investment 5 Strategy
Slide 25: Balance sheet and Future Investment Strategies
24 Balance sheet and Future Investment Strategies The financial situation continues to be sound. By activating investment in digital transformation (DX) infrastructure and > Cash & Deposits new areas of business development, we will make effective use of funds . ・30 to 35 billion yen, which is the a
Slide 26: Investment Strategy: Innovation of Earning Power
25 About Investment Strategy from Here on [Innovation of Earning Power] Strengthen SCM and CRM through digital investment. We will increase profitability to deal with discontinuous markets. Centralized inventory Directly from the store CRM integration Started system renovation to unify inventory Ren
Slide 27: Rethinking Global Strategy
26 Investment Strategy from Here on [Innovation of Earning Power] Rethinking Global Strategy We will revise the strategy to be globally accepted and try it again. Due to the influence of Covid-19, globalization • Rebuilding “HUF” USA was suddenly braked. • Expansion of EC in USA by utilizing “Tactic
Slide 28: About Full-year Forecast
About Full-year Forecast HOLDINGS
Slide 29: Sales Performance and Forecast for Future
28 Sales Performance and Forecast for Future As the state of emergency remained in place longer than expected, the sales forecast for the first half of the FY is down from 87.1% to 80.8% compared to year before last. Nevertheless, Q1 got off to a good start thanks to the improvement in gross profit
Slide 30: Expectation for First Half of FY Ending Feb. 2022
29 Expectation for First Half of FY Ending Feb. 2022 Q2 tends to spit out profits since it is mainly discount-season and off-season. Though we are supposed to make a complete transition to a profitable business model,it will take more times. Therefore, we expect an operating income budget of -500 mi
Slide 31: Our WILL
30 Our WILL We will improve the soundness of the business with a precise management controlling. Besides, we wil achieve advanced business through supply chain reform, digital store development, new services, new content development, etc. We will start activities to create new businesses without sta
Slide 32: Striving to be the happiest fashion company in the world
Striving to be the happiest fashion company in the world. Becoming a company that creates happiness for our shareholders, customers, society and employees.
Slide 33: Reference Data
7 Reference Data
Slide 34: Overview
33 Highlights of Q1 Results for FY Ending Feb. 2022 Unit:Million Yen Overview Q1ST 2021 Ending Feb. Q1ST 2022 Ending Feb. Composition Composition Y/Y Results Results Y/Y (%) Rate (%) Rate (%) Change Net Sales 21,682 100.0 34,215 100.0 12,532 157.8 Gross Profit 9,058 41.8 19,145 56.0 10,087 211.4 SG&
Slide 35: Net Sales Per Channel
34 Highlights of Q1 Results for FY Ending Feb. 2022 Net Sales Cumulative Q1ST 2021 Cumulative Q1ST 2022 Ending Feb. Ending Feb. Per Channel Co mpo si ti o n Results Composition Results Composition Y/Y (%) Rate Y/Y (Million yen) Rate (%) (Million yen) Rate (%) Change Department Stores 1,752 8.1 3,299
Slide 36: Brands Overview
35 Highlights of Q1 Results for FY Ending Feb. 2022 Unit:Million Yen Brands Overview Cumulative Q1ST 2021 Ending Feb. Cumulative Q1ST 2022 Ending Feb. Y/Y Composition Gross Profit Composition Gross Profit Gross Profit Sales Sales Sales (%) Rate (%) Ratio (%) Rate (%) Ratio (%) Ratio (pt) 1. nano・uni
Slide 37: Domestic Monthly Sales Information
36 Highlights of Q1 Results for FY Ending Feb. 2022 Domestic Monthly Sales Information Q1ST 2021 Ending Feb. Q1ST 2022 Ending Feb. All Stores：48.7％ All Stores：149.2％ Existing Stores：78.7％ Existing Stores：108.0％
Slide 38: The Number of Stores
37 Highlights of Q1 Results for FY Ending Feb. 2022 The Number of Stores Cumulative Q1ST FY Ending Feb. Store Store Cumulative Q1ST Y/Y Q1/Q4 2021 Ending Feb. 2021 Open Close 2022 Ending Feb. Change Change Domestic 1,000 872 +13 -13 872 -128 - Apparel Overseas 73 52 - -3 49 -24 -3 Total 1,073 924 +1
Slide 39: 1st Half and 2nd Half Profit and Loss Plan
38 Highlights of Q1 Results for FY Ending Feb. 2022 1st Half and 2nd Half Profit and Loss Plan 1st Half Plan 2nd Half Plan Full-year Plan Net Sales 71.30 Billion Yen 81.10 Billion Yen 152.40 Billion Yen (YoY:126.7%) (YoY:104.2%) (YoY:113.7%) SG&A 38.50 Billion Yen 41.40 Billion Yen 79.90 Billion Yen
Slide 40: Descriptions about future within this document
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.