Tsi Holdings Co., Ltd. · TSE:3608
Tsi — FY2023 Earnings Presentation
44 slides from Tsi's earnings presentation, Apr 13, 2023
Slide 1: Results Briefing: FY Ending Feb. 2023
Results Briefing: FY Ending Feb. 2023 13th April 2023
Slide 2: Agenda
AGENDA 1 Results Overview FY Ending Feb. 2023 2 About Business Situation by Channel 3 Brands Overview 4 About Balance Sheet 5 Initiatives in each area of TIP25 Full-year Consolidated Business Plan 6 for FY Ending Feb. 2024 7 Initiatives for TIP25 8 Reference Data
Slide 3: Results Overview FY Ending Feb. 2023
1 Results Overview FY Ending Feb. 2023
Slide 4: Highlights of Results for FY Ending Feb. 2023
4 Highlights of Results for FY Ending Feb. 2023 The domestic real store/overseas businesses achieved their sales plans as they continued to be strong throughout the year. The confusion of the supply chain due to lockdowns in production sites and the deterioration of exchange rates had adverse effect
Slide 5: Full Year Difference from the Adjusted Forecast
5 FY02/2023 Full Year Difference from the adjusted forecast While the golf and street businesses continued to perform well, prompting the company to announce the revision of operating profit to ¥1.8 billion, selling and administrative expenses for the second half of the term decreased substantially
Slide 6: Comparison with the Previous Term in Operating Profit
6 Whole year ended in Feb. 2023: Comparison with the previous term in operating profit Operating profit went below that for the previous year due to the effects of special factors, including the transfer of extraordinary loss from the previous year and the recording of expenses related to the reloca
Slide 7: Net Income Impact Items for FY Ending Feb. 2023
7 Net Income Impact Items for FY Ending Feb. 2023 Ordinary profit was ¥3.85 billion, including unplanned exchange gains of ¥0.47 billion associated with overseas subsidiaries’ assets in dollars as well as non-operating profits of ¥1.52 billion such as dividend income and real estate income. Net inco
Slide 8: About Business Situation by Channel
2 About Business Situation by Channel
Slide 9: Domestic Sales by Channel
9 Sales by Channel for FY Ending Feb. 2023 Sales for real stores recovered, registering 116.1% of the previous term’s level, up ¥12.02 billion (108.2% and +¥6.43 billion, respectively, if based on the old accounting standards). This was the result of sales boosted by the recovery of markets, includi
Slide 10: E-commerce in FY Ending Feb. 2023
10 E-commerce in FY Ending Feb. 2023 Due to sluggish performance in the first half of the term, EC sales for the whole year remained at 99.6% (based on the new revenue recognition standards), almost on the same level as in the previous term, but in the second half, they recovered to 102.0% of the pr
Slide 11: Sale Trends by Channel for FY Ending Feb. 2023
11 Sale Trends by Channel for FY Ending Feb. 2023 New cross-channel approaches brought synergy effects, causing a favorable cycle of marketing. Real stores recovered significantly while EC sales continued to be strong. Real store business EC business Real stores: 116.1% of the previous term’s level
Slide 12: Brands Overview
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Slide 13: Individual Overview of Major Brands in FY Ending Feb. 2023
13 Individual Overview of Major Brands in FY Ending Feb. 2023 Six of the top ten brands made rapid progress in sales, registering a two-digit growth rate, and the strong performance and recovery of major brands drove the overall sales of the company. In addition, sales rose mainly in the women's app
Slide 14: About Balance Sheet
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Slide 15: About Balance Sheet
15 About Balance Sheet > Inventory assets Unit:Million Yen 【Comparison with the previous term】 Cumulative Q3RD FY Ending Feb. 2022 2023 Ending Feb. FY Ending Feb. 2023 While net sales were 110.0% of the previous term’s level, inventory assets increased by ¥5.9 Results Composition Results Composition
Slide 16: Initiatives in each area of TIP25
5 Initiatives in each area of TIP25
Slide 17: TSI Holdings Group's medium-term management plan TIP25
17 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 18: TIP25 4Div. (domains)
18 TIP25 4Div.(domains) Announced on April 14, 2022 Medium-term management plan materials reposted Wellness & Lifestyle 1 Street & Culture 2 Wellness & lifestyle Street & culture Athleisure Create fashion entertainment that has a Street Nurture street culture and create fashion Outdoor positive impa
Slide 19: TIP25 4Div. (domains) brand lineup
19 TIP25 4Div.(domains) Wellness & Lifestyle 1 Street & Culture 2 Wellness & Lifestyle Div. Street & Culture Div. 1. PEARLY GATES 10. and wander 1. STÜSSY 10. LHP 2. MASTER BUNNY EDITION 11. Laline 2. HUF 11. MANASTASH 3. Jack Bunny!! 12. Urth Caffé 3. UNDEFEATED 12. Dorothy Lang 4. new balance golf
Slide 20: Creating attractive communities
20 Wellness & Lifestyle Creating attractive communities Sublimating apparel brands into community brands. Airing of new TV commercials “Go, TSI” Developing entertainment business closely linked to lifestyles. New TV commercials aired featuring the golfers Momoko Ueda and ¥47,502 million Erika Hara,
Slide 21: Platform for play rooted in the street spirit
21 Street & Culture Platform for play rooted in the street spirit By extending to the keyword “play,” the platform aims at “Schott” The historic brand which celebrates 110th anniversary of its launch, is attracting spreading itself to neighboring lifestyles, reinventing gears, public attention again
Slide 22: Services that respond constantly to market trends and changes
22 Fashion Capital Services that respond constantly to market trends and changes Being flexible enough to continue changing gracefully, granting the wishes of customers, and extending a circle of happiness. “LE PHIL” has posted substantial revenue growth for three consecutive terms since its creatio
Slide 23: Continuously expanding content to win over the next generation of customers
23 Digital Generation Continuously expanding content to win over the next generation of customers Obtaining a favorable response and generating strong excitement through tangible and intangible content that expands infinitely. “hueLe Museum” initiatives for OMO promotion ¥12,579 million Net sales Yo
Slide 24: Full-year Consolidated Business Plan for FY Ending Feb. 2024
Full-year Consolidated Business Plan 6 for FY Ending Feb. 2023
Slide 25: Profit and Loss Plan for FY Ending Feb. 2024
25 Profit and Loss Plan for FY Ending Feb. 2023 Sales are projected to be ¥162 billion / 104.9% of the previous term. Selling and administrative expenses are expected to grow as net sales expand, but due to factors such as the effects of the relocation of the head office, the company plans a decreas
Slide 26: FY02/2024 Full Year Operating Income Variance
26 FY02/2024 Full Year Profit and Loss Plan Operating Income Variance In the plan for the term ending in February 2024, based on the ¥2.32 billion posted in the term ended in February 2023, we aim to earn ¥4.7 billion in operating profit. Factors taken into account include decreases in employment ad
Slide 27: Return to shareholders
27 Return to shareholders The amount of dividend for the term ended in February 2023 was revised from ¥7 per share ※2 as previously forecast to ¥10 per share. The dividend forecast for the current term taking into consideration all factors such as projected financial results and business environment
Slide 28: Initiatives for TIP25
7 Initiatives for TIP25 TS!| HOLDINGS
Slide 29: A company creating fashion entertainment
29 Regeneration A company creating fashion entertainment – We link value to society (value provided) to corporate growth, – While using entertainment that fashion brings, – To create a form of original value provided that is not limited to product provision. # SocialValue # Entertainment # Empathy S
Slide 30: Designing greater customer experience than expected
30 Designing greater customer experience than expected PoC for the joint metaverse project with Alibaba and JP GAMES Take part in the metaverse area to provide new brand experience. Utilize 3D data accumulated through product development to create new entertainment. – Putting 3D data produced in the
Slide 31: Bolstering entertainment content
31 Bolstering entertainment content New ways of providing value Outgrow our traditional domain of creation specialized in apparel products (= goods) and offer entertainment content that creates “play,” “ experience,” and “sympathy.” Develop products, services, and communication methods that exceed t
Slide 32: Communicating attractive designs by combining brands and free spaces
32 Communicating attractive designs by combining brands and free spaces Designing essential lifestyle experience exceeding non-material value With the relocation of the head office, TSI has set up an entertainment area that can be utilized for events and other purposes. This entertainment area provi
Slide 33: Toward spiral and agile work styles
33 Toward spiral and agile work styles Putting creative work styles into practice TSI is promoting environmental design and awareness raising to encourage the work style “ONE TABLE,” which eliminates barriers between departments. The ONE JILL Project does rebranding using a cross-functional one-team
Slide 34: Developing materials to reduce environmental impacts
34 Developing materials to reduce environmental impacts A project for developing TSI original organic cotton We executed an outsourcing agreement with SynCom Agritech, an agricultural venture c o m p a n y, u n d e r t h e t h e m e o f t h e “ s t u d y o n d e v e l o p m e n t o f T S I ’ s o r g
Slide 35: Creating a sustainable future through fashion entertainment
35 Creating a sustainable future through fashion entertainment Nine initiatives for sustainability that suits TSI’s materiality TSI is promoting various initiatives to solve its materiality. 1 Climate change 3 Waste Establishment of the Sustainability Committee 2 Raw materials 4 Water resources Unde
Slide 36: A company creating fashion entertainment
Nurture worldwide empathy and social value through the power of fashion entertainment. A company creating fashion entertainment
Slide 37: Reference Data
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Slide 38: Consolidated Financial Highlights - Profit and Loss (Q4)
38 Highlights of Full-year Results for FY Ending Feb. 2023 Unit:Million Yen Consolidated Financial *1 *2 Highlights -Profit and Loss- Q4TH 2022 Ending Feb. Q4TH 2023 Ending Feb. (December to February) Results Composition Results Composition Y/Y Y/Y (%) Rate (%) Rate (%) Change Net Sales 36,467 100.0
Slide 39: Financial Highlights - Profit and Loss
39 Highlights of Full-year Results for FY Ending Feb. 2023 Unit:Million Yen Financial FY Ending Feb. *1 FY Ending Feb. *2 2022 2023 Highlights -Profit and Loss- Composition Composition Y/Y Results Rate (%) Results Rate (%) Y/Y (%) Change Net Sales 140,382 100.0 154,456 100.0 14,074 110.0 Gross Profi
Slide 40: Net Sales Per Channel
40 Highlights of Full-year Results for FY Ending Feb. 2023 Unit:Million Yen FY Ending Feb. *3 FY Ending Feb. *4 Net Sales 2022 2023 Per Channel Results Composition Results Composition Composition Rate Rate (%) Rate (%) Y/Y (%) Y/Y Change(pt) (Million yen) (Million yen) Department Stores 13,820 9.8 1
Slide 41: Brands Overview
41 Highlights of Full-year Results for FY Ending Feb. 2023 Unit:Million Yen *1 *2 FY Ending Feb. 2022 FY Ending Feb. 2023 YoY Brands Overview Composition Gross Profit Composition Gross Profit Gross Profit Sales Rate (%) Sales Rate (%) Sales (%) Ratio (%) Ratio (%) Ratio (pt) 1. PEARLY GATES 15,069 1
Slide 42: Domestic Monthly Sales Information
42 Highlights of Full-year Results for FY Ending Feb. 2023 Domestic Monthly Sales Information FY 2022 Ending Feb. FY 2023 Ending Feb. All Stores：103.1％ All Stores：102.1％ Existing Stores：99.5％ Existing Stores：103.5％
Slide 43: The Number of Stores
43 Highlights of Full-year Results for FY Ending Feb. 2023 The Number of Stores FY Ending Store Store FY Ending Feb. Y/Y Feb. Open Close 2023 Change 2022 Domestic 805 +38 -105 738 -67 Apparel Overseas 41 - -12 29 -12 Total 846 +38 -117 767 -79 Restaurant Domestic 7 +1 - 8 +1 Cosmetics Domestic 36 +4
Slide 44: Disclaimer
・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. ・This document has been translated from the Japanese or