Tsi Holdings Co., Ltd. · TSE:3608

Tsi — Q2 FY2017 Earnings Presentation

20 slides from Tsi's earnings presentation, Oct 17, 2016

  1. Slide 1: Results Briefing: Q2ND (March to August 2016) Results of 2017 Ending February

    Results Briefing: Q2ND(March to August 2016) Results of 2017 Ending February 2016.10.17

  2. Slide 2: I. Results Overview

    I. Results Overview 2 TSI HOLDINGS CO., LTD. All Rights Reserved.

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

    Consolidated Financial Highlights –Profit and Loss- Achieved the highest profits since the establishment of the holdings by improving gross profit and driving down SG&A expenses (Unit: Million Yen) Cumulative Q2ND Cumulative Q2ND 2016 Ending Feb. 2017 2017 Ending Feb. Composition Original Compositio

  4. Slide 4: Victory Formula measures and results by accounting item

    Victory Formula (Unit: Million Yen) Cumulative Q2ND Accounting Item Content Result 2017 Ending Feb. E-commerce sales growth Net Sales E-commerce +26.8% Y/Y 77,181(92.4% Y/Y) COGS Approx. 100 million yen Revaluation Loss cost cut Y/Y (Cost of 34,966(90.1% Y/Y) Goods Sold) Direct Trading Last FY resul

  5. Slide 5: Sales Overview

    Sales Overview Net sales of continuing brands (excluding withdrew brands and others) was 100.8% Y/Y （Unit: Million Yen） • nano・universe • Apuweiser-Riche Continuing Brands Comparison Shop# 72(+11 Y/Y) Shop# 16(-1 Y/Y) ①Financial Net Sales ②Monthly Revenue(All Stores) • NATURAL BEAUTY • JILL by JILLS

  6. Slide 6: Brands Overview

    Brands Overview Pearly Gates, Stussy etc. continued to grow healthily, thus net sales of TOP10 was 101.6% Y/Y (Unit: Million Yen) Cumulative Q2ND Cumulative Q2ND Y/Y 2016 Ending Feb. 2017 Ending Feb. Sales Gross Profit Sales Gross Profit Gross Profit Brand Sales Composition Ratio Composition Ratio R

  7. Slide 7: II. Progress of Growth Strategy

    II. Progress of Growth Strategy 7 TSI HOLDINGS CO., LTD. All Rights Reserved.

  8. Slide 8: Overview of Medium-Term Management Plan

    Overview of Medium-Term Management Plan TSI at present 2016 Ending Feb. 2017 Ending Feb. 2018 Ending Feb. 2019 Ending Feb. Short-term profitability structural reform • Withdrawal of unprofitable businesses and closure of brands Profitability Basis Enhancement of • Rationalization of procurement Mana

  9. Slide 9: 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 2017 Ending Feb. and Action plans for future • Due to last FY’s structural reform, operating profits of 11 subsidiaries increased Y/Y(8 subsidiaries last FY), Tokyo Style became black ink

  10. Slide 10: 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 2017 Ending Feb. and Action plans for future • Sequential release of smartphone apps of brands in the second half of 2017 Ending February • Stock linkages of 10 3rd party E-commerce websites

  11. Slide 11: Regrowth plans for nano・universe and ROSE BUD

    Regrowth plans for nano･universe and ROSE BUD Basic Strengthen group governance through improvement of management culture for regrowth Principle Personnel/Organization Business President Change Wind up low profitability business and stores ▶ Establishment of team management from ▶ Enhance profitabil

  12. Slide 12: Progress of E-Commerce Business

    Progress of E-Commerce Business 1 Progress Strong growth continues due to aggressive investment to e-commerce business Cumulative Q2ND Q1st Cumulative Q2ND 2016 Ending Feb. 2017 Ending Feb. 2017 Ending Feb. E-Commerce Ratio (%) 10.4 12.8 14.2 Sales Growth Y/Y (%) 104.2 124.5 126.8 └ Own EC 119.2 └ 3

  13. Slide 13: Progress of E-Commerce Business: Omni-channeling Strategy

    Progress of E-Commerce Business 2 Basic Setting “Omni-channeling” strategy at the center, aiming to evolve existing brand business for Principle the upcoming era Evolution of MD and Sales Evolve from the existing brand business Measures Contents / Examples Thorough prevention of ・Check stockout twic

  14. Slide 14: III. Reference Data

    III. Reference Data 14 TSI HOLDINGS CO., LTD. All Rights Reserved.

  15. Slide 15: Domestic Comparable-Store Sales Rate

    Domestic Comparable-Store Sales Rate Y/Y TOP10 TSI ALL 130.0% Cumulative Q2ND 2016 Ending Feb. Cumulative Q2ND 2017 Ending Feb. TOP10 : 95.9% TOP10 : 98.0% 120.0% TSI ALL: 96.6% TSI ALL: 96.7% 110.0% 105.7% 99.4% 98.1% 101.0% 100.3% 107.8% 97.9% 98.1% 99.3% 100.0% 95.4% 93.7% 94.1% 93.0% 94.9% 95.9%

  16. Slide 16: Net Sales Per Channel

    Net Sales Per Channel (Unit: Million Yen) Cumulative Q2ND Cumulative Q2ND 2016 Ending Feb. 2017 Ending Feb. Composition Composition Compostion Rate Results Results Y/Y Rate Rate Y/Y Change Department Stores 20,520 24.6% 16,385 79.8% 21.2% -3.3pt Commercial Facilities(*1) 40,969 49.0% 39,414 96.2% 51

  17. Slide 17: Number of Stores

    Number of Stores Q2ND 2016 Ending Feb. Q1ST 2017 Ending Feb. Store Open Store Close Q2ND 2017 Ending Feb. # of stores 1,362 1,381 7 153 1,235 Domestic Change -261 50 -146 # of Stores 225 222 1 9 214 Overseas Change -5 -5 -8 # of Stores 1,587 1,603 8 162 1,449 Total Change -266 45 -154 *Number indica

  18. Slide 18: Glossary

    Glossary 1 Page Word/Phrase Definition 4 Direct Trading Ratio Ratio of manufacturers take up the trading business for imports/exports themselves against all the imports Procurement Project Project to streamline costs of purchase of materials, equipment and consumables that are not directly related t

  19. Slide 19: Glossary

    Glossary 2 Page Word/Phrase Definition 9 Best Practice Procedures, processes, measures etc. that are accepted as being correct or most effective. Styling To create an effective style by combining one product with other products and items. Markdown Deduction of the price. 10 Olapic A picture platform

  20. Slide 20: Notes on amounts and forecasts

     The amounts given in this material are rounded down to the nearest million yen  The forecast performance for TSI Holdings indicated in this material is based on the assessments/assumptions from the information available as of this material’s date. Actual performance may differ depending on variou

TSI Holdings — Q2 FY2017 Earnings Presentation on 6ix