Tsi Holdings Co., Ltd. · TSE:3608
Tsi — FY2025 Earnings Presentation
41 slides from Tsi's earnings presentation, Apr 14, 2025
Slide 1: FY2025 Full-Year Financial Results Briefing
FY2025 Full-Year Financial Results Briefing
Slide 2: Agenda
AGENDA 1 FY2025 Full-Year Overview 2 Existing Channels Overview 3 Brands Overview 4 Progress of the Medium-Term Management Plan 5 FY2026 Full-Year Consolidated Financial Outlook 6 Appendix Note: "FY" in this material refers to the fiscal year begins on the first day of March and ends on the last day
Slide 3: FY2025 Full-Year Overview
Next Agenda = o ra ® > O § > FY2025 Full
Slide 4: FY2025 Full-Year: Executive Summary
FY2025 Full-Year: Executive Summary The structural reforms set forth in the medium-term management plan are progressing steadily. The disposal of non-core assets led to a substantial increase in net income, resulting in a final figure in line with the revised forecast. Operating profit was effective
Slide 5: FY2025 Full-Year: Performance
> Gross Profit FY2025 Full-Year: Performance (in million yen) [Negative Factors] • Increased markdowns and losses in inventory valuation resulted from inventory optimization in ongoing businesses and 1,000 60.0% accelerated clearance in discontinued businesses. 54.7% 55.0% 54.5% • Rising procurement
Slide 6: FY2025 Full-Year: Operating Income
FY2025 Full-Year: Operating Income Operating income was initially projected to be 2,000 million yen but instead came in at 1,630 million yen, falling 370 million yen short of the revised plan. The shortfall resulted from a partial reduction in the expected benefits from structural reforms and the im
Slide 7: FY2025 Full-Year: Factors Affecting Net Income
FY2025 Full-Year: Factors Affecting Net Income Ordinary profit amounted to 2,070 million yen, including 440 million yen in non-operating items such as real estate income, dividends received, and equity-method investment losses. Despite recording impairment losses related to the transfer of business
Slide 8: Balance Sheet
Balance Sheet > Cash and Deposits (in million yen) Progress in non-core asset reduction under the medium- term plan—mainly through real estate sales—led to a FY Ended Feb. Cumulative Q3RD significant cash increase. FY Ended Feb. 2025 2024 2025 Ended Feb. Cash and deposits rose by 18,850 million yen,
Slide 9: Existing Channels Overview
Existing Channels Overview 8
Slide 10: FY2025 Full-Year: Existing Channels (Domestic)
FY2025 Full-Year: Existing Channels Domestic physical store sales rose to 101.7% of the previous year, reflecting an increase of 1,520 million yen, driven by robust performance from brands that effectively capitalized on inbound tourist demand. Department store sales declined to 93.8%, indicating a
Slide 11: FY2025 Full-Year: Existing Channels (E-Commerce)
FY2025 Full-Year: Existing Channels (E-Commerce) Sales on third-party e-commerce platforms, bolstered by stronger offerings of limited and collaborative items, remained strong at 101.0% of the previous year. In contrast, sales on the Company’s own e-commerce site declined to 92.2% due to reduced pro
Slide 12: Brands Overview
Next Agenda Brands Overview
Slide 13: FY2025 Full-Year: Core Brands
FY2025 Full-Year: Core Brands While some brands experienced temporary revenue declines due to inventory optimization and a reevaluation of store strategies, others gained from enhanced content. These strategic initiatives have established a robust foundation for the brand’s long-term sustainability
Slide 14: FY2025 Full-Year: Growing Brands
FY2025 Full-Year: Growing Brands Sales have grown by 137.5% year-on-year, The brand has been expanding its social media A new lifestyle brand derived from "Human indicating robust growth. presence, including launching its TikTok account Woman" launched in the fall of 2024. in April 2024 and releasin
Slide 15: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan 14
Slide 16: TIP 27: Transformation of TSI Group
(Excerpt from Medium-term Management Plan dated April 12, 2024) TIP 27: Transformation of TSI Group Reform the Profit Structure and Invest in the Growth and Human Resources to Increase TSI’s Corporate Value. Fulfill TSI’s Vision: “Creator of Fashion Entertainment” Profit Structure Reform Growth Stra
Slide 17: Profit Structure Reform
Profit Structure Reform (Excerpt from Medium-term Management Plan dated April 12, 2024) Purpose Current Issues Course of Action Completion Impact FYE Feb 2027 (1-year) Consolidate orders/improve purchasing leverage Approx. Purchase Cost Decentralized procurement is Reductions causing high COGM. Cost
Slide 18: Structural Reform: Purchase Cost Reductions
Structural Reform: Purchase Cost Reductions The company is establishing a strategy for production and manufacturing and taking actions tailored to the business model to reduce costs. ① Consolidation of suppliers Purchase Cost Reductions ② Building strategic partnerships with key suppliers ③ Streamli
Slide 19: Structural Reform: Optimized Supply & Demand Management (Strategic Pricing)
Structural Reform: Optimized Supply & Demand Management (Strategic Pricing) Create a pricing approach framework and establish a process/system that allows the brand to drive analysis and pricing. Implement pricing using the Results Assessment and Pricing Develop a pricing framework framework Strateg
Slide 20: Structural Reform: Retail Operation Reform
Structural Reform: Retail Operation Reform Focusing on optimizing the placement of sales staff and reforming systems, with an emphasis on regional areas. Development of new career pathways Refine skills as a shared sales associate Introduction of and excel across a shared sales associate system mult
Slide 21: Structural Reform: E-commerce Platform Integration & System Renewal
Structural Reform: E-commerce Platform Integration & System Renewal Consolidate the 11 in-house e-commerce sites and membership services into a single multi-brand online store. ✓ Cost reduction through site integration ✓ Optimize business operations and establish an efficient operational framework i
Slide 22: Structural Reform: SG&A Cost Efficiency
Structural Reform: SG&A Cost Efficiency Implement cross-brand cost control to enhance cost-effectiveness./Review the entire supply chain to reduce logistics costs. Company-wide cost control Driving logistics optimization Implement a cost control system through company- Building on traditional logist
Slide 23: Growth Strategy: Refining the Brand Portfolio
Growth Strategy: Refining the Brand Portfolio Reviewed the policies of each brand and decided to withdraw (discontinue/transfer) some brands. For the brands that continue, the formulation of a mid-term business plan for all brands has clarified revenue targets and strategic direction. Aiming for ove
Slide 24: Growth Strategy: Enhancing Customer Engagement (OMO Initiatives)
Growth Strategy | Enhancing Customer Engagement (Implementing OMO Initiatives) Building on the official multi-brand online store mix.tokyo, we will offer new value across brands, tailored to meet customer needs. Expand customer touchpoints Introduce new entertainment Unification of membership from i
Slide 25: Reinforcing the Business Foundation: Commitment to Sustainable Management
Reinforcing the Business Foundation: Commitment to Sustainable Management • In climate change, the company earned a "B" score for two consecutive years. • In water security, the company received its first-ever "B" score. Note: The B score is the third-highest among eight levels, indicating that the
Slide 26: Revision of Cash Generation and Resource Allocation in the Medium-Term Plan
(Excerpt from Q3 Result Briefing Material dated January 15, 2025) Revision of Cash Generation and Resource Allocation in the Medium-Term Plan The cash generation for the three-year medium-term plan increased by 11,000 million yen from the real estate sale. This additional cash will be allocated to g
Slide 27: Full-Year Consolidated Financial Outlook for FY2026
Full-Year Consolidated Financial Outlook for FY2026 26
Slide 28: Full-Year Profit Forecast for FY2026
Full-Year Profit Forecast for FY2026 Net sales are expected to be 153,000 million yen, reflecting a 97.7% year-on-year change, impacted by business withdrawals. Operating income is projected at 5,700 million yen, an increase of 348.4% year-on-year, driven by the effects of profitability restructurin
Slide 29: FY2026 Full-Year Earnings Plan: Operating Income Variance
FY2026 Full-Year Earnings Plan: Operating Income Variance For the fiscal year ending in February 2025, operating income is projected to increase from 1,630 million yen in the previous year, driven by a reduction in one-time expenses, the positive impact of exited businesses, sales growth from busine
Slide 30: Outlook FY2027
Outlook FY2027 (in million yen) (Target) TIP27 Period Performance Forecast 10,000 FY2025 (Results) FY2026 (Budget) FY2027 (Target) Net Sales 156,600 153,000 165,000 Operation Income 1,630 5,700 10,000 FY2026 (Budget) Operation 1.0% 3.7% 6.0%～ 5,700 Income margin （FY2025 Result + Gains from Structura
Slide 31: Dividend Forecast
Dividend Forecast In line with its dividend policy, the Company targets a payout ratio of 30% or higher and plans to include a special dividend until the fiscal year ending in February 2027. For the current fiscal year, consistent with the previously disclosed policy, the basic dividend will be 25 y
Slide 32: Recent stock price trends
Recent stock price trends Since the TSI Innovation Program was implemented, Achieving a new the stock price has consistently increased. all-time high since listing New all-time high since ¥1,352 TSI's establishment (¥1,086) Rolling into TIP27 Disclosure of TIP25 (Previous Mid-Term Plan) TIP25 TIP27
Slide 33: Creator of Fashion Entertainment
We create empathy and social value across the world through the power of fashion entertainment. Creator of Fashion Entertainment copyright © 2025 TSI HOLDINGS CO., LTD. All right reserved. 32
Slide 34: Appendix
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Slide 35: Financial Highlights for FY2025 (Q4)
Financial Highlights for FY2025 (in million yen) Q4 Overview Q4 2024 Ended Feb. Q4 2025 Ended Feb. Composition Composition Y/Y Results Rate (%) Results Rate (%) Y/Y (%) Change Net Sales 40,526 100.0 40,555 100.0 28 100.1 Gross Profit 20,527 50.7 20,529 50.6 2 100.0 SG&A Expenses 20,990 51.8 21,071 5
Slide 36: Financial Highlights for FY2025 (Full Year)
Financial Highlights for FY2025 (in million yen) Full Year Results Overview FY Ended Feb. FY Ended Feb. (Cumulative) 2024 2025 Composition Composition Y/Y Results Rate (%) Results Rate (%) Y/Y (%) Change Net Sales 155,383 100.0 156,606 100.0 1,222 100.8 Gross Profit 84,729 54.5 83,995 53.6 -733 99.1
Slide 37: Financial Highlights for FY2025: Net Sales Per Channel
Financial Highlights for FY2025 (in million yen) FY Ended Feb. FY Ended Feb. Net Sales Per Channel 2024 2025 Composition Results Composition Results Composition Y/Y (%) Rate Y/Y (Million yen) Rate (%) (Million yen) Rate (%) Change(pt) Department Stores 19,258 12.4 18,059 11.5 93.8 -0.9pt Commercial
Slide 38: Financial Highlights for FY2025: Brands Overview
Financial Highlights for FY2025 (in million yen) Brands Overview FY Ended Feb. 2024 FY Ended Feb. 2025 YoY Composition Gross Profit Composition Gross Profit Gross Profit Sales Rate (%) Sales Rate (%) Sales (%) Ratio (%) Ratio (%) Ratio (pt) 1. PEARLY GATES 16,111 10.4 54.5 14,965 9.6 50.2 92.9 -4.3p
Slide 39: Trends in Sales for Domestic Existing and All Stores
Financial Highlights for FY2025 Trends in Sales for Domestic Existing and All Stores FY 2024 Ending Feb. All Store Existing FY 2025 Ending Feb. Store All Stores：101.0％ All Stores：101.0％ 120 Existing Stores：104.8％ Existing Stores：102.0％ 115 112.6 111.2 110 106.3 106.5 107.1 105.8 105.5 110.4 104.6 10
Slide 40: Number of Stores
Financial Highlights for FY2025 Number of Stores FY Ended Feb. Store Store FY Ended Feb. Y/Y 2024 Open Close 2025 Change Domestic 731 +45 -88 688 -43 Apparel Overseas 30 +4 -16 18 -12 Total 761 +49 -104 706 -55 Restaurant Domestic 6 - -5 1 -5 Cosmetics Domestic 31 +2 -1 32 1 Total 798 +51 -110 739 -
Slide 41: Forward-looking statements
This document comprises of forward-looking statements, including forecasts, outlooks, targets, and plans pertaining to the Company, its subsidiaries, and affiliates. The statements are based on the information available to the Company as of the date of this document and certain reasonable assumption