Tsi Holdings Co., Ltd. · TSE:3608
Tsi — Q3 FY2016 Earnings Presentation
24 slides from Tsi's earnings presentation, Jan 14, 2016
Slide 1: Results Briefing: Consolidated Cumulative Q3RD (March to November 2015)
Results Briefing: Consolidated Cumulative Q3RD (March to November 2015) Results of 2016 Ending February 2016.1.14
Slide 2: I. Results Overview
I. Results Overview 2 TSI HOLDINGS CO., LTD. All Rights Reserved.
Slide 3: Consolidated Financial Highlights - Profit and Loss 1
Consolidated Financial Highlights -Profit and Loss 1- Net profit was x2.4 Y/Y and EBITDA was +3.6% Y/Y (Unit: Million Yen) Consolidated Consolidated Cumulative Q3RD Cumulative Q3RD 2015 Ending Feb. 2016 Ending Feb. Composition Composition Y/Y Results Results Y/Y Rate Rate Change Net Sales 132,640 10
Slide 4: Consolidated Financial Highlights - Profit and Loss 2
Consolidated Financial Highlights -Profit and Loss 2- SG&A ratio and operating profit improved in Q3RD due to the structural reform in 1st half (Unit: Milliion Yen) Consolidated Cumulative Q2ND Q3RD(Sept.-Nov.) 2015 Ending Feb. 2016 Ending Feb. 2015 Ending Feb. 2016 Ending Feb. Composition Compositi
Slide 5: Sales Overview
Sales Overview Net sales excluding withdrew businesses marked positive growth Q3RD 2015 Ending Feb. (Unit: Million Yen) 2015 Ending Feb. Closed Brands 132,640 -4,765 Others Others TOP10 Brands TOP10 Brands Sales Increase Sales Decrease Sales Increase Sales Decrease ＋2,527 -2,310 Q3RD ＋2,976 -1,950 2
Slide 6: Brands Overview
Brands Overview Gross profit ratio improved as well (Unit: Million Yen) Consolidated Cumulative Consolidated Cumulative Y/Y Q3RD 2015 Ending Feb. Q3RD 2016 Ending Feb. Sales Gross Profit Sales Gross Profit Gross Profit Brand Sales Composition Ratio Composition Ratio Ratio 1 nano・universe 17,447 13.2
Slide 7: Business Results Forecast for FY2016 Ending Feb.
Business Results Forecast for FY2016 Ending Feb. Reckoned with current sales trend, revised down the sales, operating profit and ordinary profit, but revised up the net income due to the plan of selling additional assets in Q4TH. (Unit: Million Yen) FY2015 Ending Feb. FY2016 Ending Feb. Original Rev
Slide 8: II. Progress of Future Growth Strategy
II. Progress of Future Growth Strategy 8 TSI HOLDINGS CO., LTD. All Rights Reserved.
Slide 9: Summary and Update of Growth Strategies
Summary and Update of Growth Strategies Overview of measures Update as of now Customer/ Introduction of customer NPS, eNPS, • Introduced to 98 stores and achieved +3 p.p. to 8 p.p. budget achievement rate compared to stores, to which it was not introduced. Sales and PDCA Sales staff’s motivation mea
Slide 10: Overall Image of the NPS Project
Overall Image of the NPS Project NPS Project is being steadily promoted and will accelerate its implement in all brands Customer NPS eNPS PDCA Measure customers’ loyalty toward Measure the loyalty of store ①Store performance of day/time of day the brand (Already studied with managers/sales sta
Slide 11: Economic of Customer Loyalty
Economic of Customer Loyalty Lifetime value of a customer increases through increasing number of promoters and reducing that of detractors CUSTOMER NPS Average purchase amount of Natural Beauty Basic by promoters, passives and detractors (Unit: 10,000 Yen) Average Purchase Amount x1.6 Detractor Pass
Slide 12: Pricing Strategy: Price Per Item Analysis
Pricing Strategy: Price Per Item Analysis (Q3RD 2016 Ending Feb.) 18 brands implemented the correct pricing strategy in Q3RD(12 brands in Q2ND) Customer Number Y/Y Brands which increased price and increased # of customers Existing Stores Brands which increased price, but negative impact of decrease
Slide 13: Promotion Strategy
Promotion Strategy Despite the fact that promotion media is shifting from paper to digital, TSI’s has been concentrating on paper based promotion WEB media contact time continues to increase Transition of Media contact time proportion from 2010 through 2015: magazine -2%, WEB +15%. Women from age 20
Slide 14: Procurement Cost Reduction / Re-investment of Created Capital
Procurement Cost Reduction/ Re-investment of Created Capital Investments in “digital” and “sales field” by optimizing the “procurement cost” Result of the Procurement Investment in the sales Project Investment in digital field We broke down the overall cost Google <Examples of initiatives by each
Slide 15: Current Trend of Digital Advertisement
Current Trend of Digital Advertisement Convergence: Majority is Google, Fan is Social Media The world’s largest search engine which provides Google various services to individuals to businesses Success in digital advertisement hinges upon how effectively we Facebook The world’s largest social media
Slide 16: Reinforcement of E-Commerce Business
Reinforcement of E-Commerce Business Almost all brands’ O2O sites are now on the table, developing smartphone apps to meet the needs in “Smartphone First” era E-commerce Ratio 4 brands newly opened O2O sites Q3RD 2016 Ending Feb. Actions to Transition of # of own E-commerce sites strengthen 2015 End
Slide 17: M&A/Oversea Strategy
M&A/Oversea Strategy M&A and oversea business development is moving forward strongly, with full utilization of the network from the business partner The state-on bank which is known as a leader of successfully bring up domestic companies to the global market and industry consolidation in Japan. TSI
Slide 18: Sophistication of Processes: Business Process Re-engineering
Sophistication of Processes: Business Process Re-engineering Enhance the accuracy of planning, demand forecast, production, and distribution by sophisticating processes Enhancement of Start establishing an internal process to analyze social trends, translate them into fashion trends, and planning/ r
Slide 19: Efficient Use of Capital
Financial Strategy Increase ROE by improving capital efficiency and seek further fulfillment of shareholder return policy Consolidated capital of TSI Holdings to seek Efficient Use of efficiency of payment operation Capital ->e.g. Cash Management Service etc. Efficient Use of Clearly demonstrate the
Slide 20: III. Reference Data
III. Reference Data 20 TSI HOLDINGS CO., LTD. All Rights Reserved.
Slide 21: Domestic Comparable-Store Sales Rate
Domestic Comparable-Store Sales Rate Y/Y Q3RD 2015 Ending Feb. TOP10 ALL TSI ALL Q3RD 2016 Ending Feb. TOP10 : 105.4% TOP10 : 96.0% 130.0% TSI ALL: 102.5% TSI ALL: 96.2% 120.0% 114.3% 108.6% 110.0% 105.5% 105.5% 106.1% 103.8% 110.8% 102.4% 101.4% 101.9% 101.4% 103.1% 100.2% 99.2% 101.1% 107.8% 99.1%
Slide 22: Net Sales Per Sales Channel
Net Sales Per Sales Channel (Unit: Million Yen) Consolidated Cumulative Consolidated Cumulative Q3RD 2015 Ending Feb. Q3RD 2016 Ending Feb. Composition Composition Composition Rate Results Results Y/Y Rate Rate Y/Y Change Department Stores 35,409 26.7% 30,186 85.2% 24.1% -2.6pt Commercial Facilities
Slide 23: Store Distribution
Store Distribution Q3RD 2015 Ending Feb. Q2ND 2016 Ending Feb. Store Open Store Close Q3RD 2016 Ending Feb. # of Stores 1,791 1,362 48 9 1,401 Domestic Change + 26 ▲ 261 + 39 # of Stores 220 225 10 7 228 Overseas Change ▲ 11 ▲5 +3 # of Stores 2,011 1,587 58 16 1,629 Total Change + 15 ▲ 266 + 42 *Num
Slide 24: Notes on rounding 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