Tsi Holdings Co., Ltd. · TSE:3608
Tsi — Q3 2021 Ending Feb. Earnings Presentation
27 slides from Tsi's earnings presentation, Jan 14, 2021
Slide 1: Results Briefing: Q3RD (March to November 2020)
Results Briefing: Q3RD(March to November 2020) Results of 2021 Ending Feb. 2021.1.14
Slide 2: I. Results Overview
TS| HOLDINGS |. Results Overview
Slide 3: Consolidated Financial Highlights - Profit and Loss
Unit:Million Yen Cumulative Q3RD 2020 Cumulative Q3RD 2021 Ending Feb. Ending Feb. Composition Composition Y/Y Results Results Y/Y (%) Rate (%) Rate (%) Change Net Sales 125,823 100.0 97,219 100.0 -28,603 77.3 Gross Profit 68,524 54.5 46,741 48.1 -21,783 68.2 SG&A Expenses 66,583 52.9 55,012 56.6 -1
Slide 4: Consolidated Financial Highlights - Profit and Loss (September to November)
■ Business conditions of the entire Q3 Recovery of the market was slow due to the COVID-19 pandemic and the situation remains harsh. Under such circumstances, although this is an evaluation of a 3-month spot period of Q3, we were able to make our businesses recover to a surplus of operating income.
Slide 5: Consolidated Financial Highlights - Profit and Loss (Quarterly)
■ Earnings improved quarter-by-quarter due to recovery of net sales and controlled earnings structure. 【Year-on-year change of net sales, gross profit, SG&A expenses by quarter】 Net sales Net sales of Q3 (Sep.-Nov.) improved arriving at 93.1% year on year. EC net sales in Japan remained favorable re
Slide 6: Brands Overview (September to November)
■ 16 brands which account for 1/3 of the whole company exceeded 100% for Q3 (Sep.-Nov.) year on year and gained customers’ support in the severe market under the COVID-19 pandemic. Unit:Million Yen Q3RD 2020 Ending Feb. Q3RD 2021 Ending Feb. Y/Y Composition Gross Profit Composition Gross Profit Gros
Slide 7: Summary by category (September to November)
■ Revenue rose in each category, no. of brands with higher profit increased. 【Summary of Q3(Sep.-Nov.) by category】 Higher revenue Lower revenue Higher revenue /higher profit /higher profit /lower profit Sports Sports 5. Summary by category (September to November) Street Street Men s/Ladies ’ Men La
Slide 8: Net Sales Per Channel
■ Brick-and-Mortar stores, main sales channel, continues to struggle due to the impact of COVID-19, but net sales remained steady thanks to reinforced measures to draw customers to the Company’s EC. Cumulative Q3RD 2020 Cumulative Q3RD 2021 Ending Feb. Ending Feb. Results Composition Results Composi
Slide 9: Sales of In-house EC
■ The Company’s EC remained strong, a shift to EC continued to be reinforced. • Consolidated EC functions and staff of each company of the Group into TSI EC strategy. Made a transition to EC expansion strategy with the cross-functional functions. • Focused on reinforcing staff contents and measures
Slide 10: Consolidated Financial Highlights - Balance sheet
Unit:Million Yen Cumulative Q3RD 2020 Cumulative Q2ND 2021 Cumulative Q3RD 2021 Ending Feb. Ending Feb. Ending Feb. Composition Composition Composition Y/Y Q3/Q2 Results Results Results Y/Y (%) Q3/Q2 (%) Rate (%) Rate (%) Rate (%) Change Change Current Assets 79,759 44.1 69,048 44.8 70,678 45.8 -9,0
Slide 11: Summary of Q3
01 Net sales, operating income for Q3 sharply surpassed the revised plan. 【Summary of Q3 (Sep.-Nov.)】 • There were many brands which recorded strong net sales in the harsh sales competition. • EC net sales were steady as sales at stores improved and a high EC composition ratio was maintained. • Gros
Slide 12: II. The progress of Medium-Term Reform programs
Ⅱ The progress of Medium-Term Reform programs 12
Slide 13: Medium-Term Reform programs
■ Composition of TSI Innovation Program 2024 Creating a fusion of digital and power of humanity, bringing management and field closer, we accomplish the speedy business operation suited to the digital age. We will build a digital-fashion company which creates originality by creativity and logic. Low
Slide 14: Progress of the Structural Reform
01 Lower the breakeven point by reducing fixed expenses and withdrawing from businesses Implementation of downsizing 300 employees ▲3billion yen Reduction of ・Estimated cost reduction involving withdrawal of stores and personnel withdrawal of business expenses ・Implement it by the end of February, 2
Slide 15: Toward one company integration: organizational realignment
01 Organizational realignment 【Transformation to accelerate the speed in corporate manegement 】 TSIHD PLAX Co., Ltd Overseas CO.,LTD. INTERNATIONAL SANEI- SANEI bd CO,.LTD. SPORTS CO.,LTD. TSI GROOVE & ltd. nano universe co., CO.,LTD. ROSE BUD ISOLAR CO.,LTD CO.,LTD. TSI EC STRATEGY CO.,LTD.(TSIPN)
Slide 16: Toward one company integration: organizational structure
02 Organizational structure of next fiscal year Pure holding company (TSI HOLDINGS CO., LTD.) /the Board of Supervision Directors Business Integrated business company (TSI CO., LTD.) /Business Execution execution Division Group CEO 3. Toward one 1st Business DV 2nd Business DV 3rd Business DV 4th Bu
Slide 17: Create new customer values with the most advanced method
01 Create new customer values with the most advanced method 【Progress of capabilities to create businesses】 Consolidation of Consolidate EC organizations, functions of business subsidiaries EC functions (some 180 persons) and human Digital team was centralized on Sep. 1 to roll out knowhow across-th
Slide 18: Restart digitalization of the business in the U.S.
02 Create new customer values with the most advanced method Restart Digitalization of the business in the U.S. overseas Tactics team acquired through M&A is to renovate the EC business and marketing function of HUF business Deepen overseas EC business and establish a new business model in which EC,
Slide 19: Evolution of the existing businesses - change a way of selling
03 Evolution of the existing businesses ― Change a way of selling 【Establish a business model not dependent on sale】 ✓ 2020SS “MARGARET HOWELL” Abolished sale at stores/on EC ✓ 2020FW “PEARLY GATES” Abolished sale at stores ✓ “Apweiser-riche” and “STUSSY” have already established a 4.Progress of the
Slide 20: Establishment of D2C platform
04 Establishment of D2C platform ETRE TOKYO newly joined the Group from Q3 in 2021 Ending Feb. Missions of HYBES, the receiving company of ETRE, include setting up new businesses mainly D2C business and doing additional M&A. 4.Progress of the Business Structural Reform Earnings forecast of ETRE TOKY
Slide 21: Conclusion: Capture a new fashion trend
01 Capture a new fashion trend 【Topics grabbing attention living with the COVID-19】 5.Conclusion 「UNION」×「JORDAN」 STUSSY’s 40th anniversary T-shirts made collaborating with 5 Erika Hara, a professional golfer who has a contract with “PEARLY GATES” world-famous designers and “MASTER BUNNY EDITION”, w
Slide 22: Conclusion
02 Severe market environment is expected to continue. We are to analyze the impact of the declaration of a state of emergency on our results for the current fiscal year from now on. As for our forecasts this fiscal year, we plan to maintain the disclosed figures in Q2. 03 Pursue speedy business mana
Slide 23: III. Reference Data
TS| HOLDINGS FREE'S MART 2020 NEW AUTUMN COLLECTION lll Reference Data
Slide 24: Brands Overview
Unit:Million Yen Cumulative Q3RD 2020 Ending Feb. Cumulative Q3RD 2021 Ending Feb. Y/Y Composition Gross Profit Composition Gross Profit Gross Profit Sales Sales Sales (%) Rate (%) Ratio (%) Rate (%) Ratio (%) Ratio (pt) 1. nano・universe 19,157 15.2 47.0 13,915 14.3 43.9 72.6 -3.1 2. NATURAL BEAUTY
Slide 25: Domestic Monthly Sales Information
Cumulative Q3RD 2020 Cumulative Q3RD 2021 Ending Feb. Ending Feb. All Stores：104.4% All Stores： 74.6% Existing Stores ：97.1% Existing Stores：83.4% 112.7 110.3 108.1 111.0 110.6 106.4 106.3 105.5 105.7 101.7 99.2 101.2 91.5 Domestic Monthly 103.3 99.2 100.9 99.4 94.3 101.9 93.0 90.8 91.7 95.8 92.6 90
Slide 26: Store Distribution
Q3RD 2020 Ending FY Ending Feb. Store Store Q3RD 2021 Ending Feb. ※1 2020 Open Close※2 Feb. # of Stores 1,029 998 +79 -80 997 Domestic Change +8 -23 -1 Store Distribution # of Stores 74 76 +6 -32 50 Overseas Change -69 -67 -26 # of Stores 1,103 1,074 +85 -112 1,047 Total Change -61 -90 -27 *1 Number
Slide 27: Disclaimer
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. 27
TSI Holdings — Q3 2021 Ending Feb. Earnings Presentation on 6ix