Tsi Holdings Co., Ltd. · TSE:3608
Tsi — 1H FY2022 Earnings Presentation
42 slides from Tsi's earnings presentation, Oct 6, 2021
Slide 1: Results Briefing: 1st Half, Results of 2022 Ending Feb.
R e s u l t s B r i e f i n g : 1 st H a l f Results of 2022 Ending Feb. 6th October, 2021
Slide 2: Impacts of the COVID-19 for 1H 02/FY22
1 Impacts of the COVID-19 for 1H 02/FY22 Associated with the fourth wave abating, business performance in June was on a recovery trend, but the impact of the COVID-19 expanded in July and beyond. The number of stores that are closed or open for shorter hours further increased, the business hours of
Slide 3: Market Trends for 1H 02/FY22 - First Half Review
2 Market Trends for 1H 02/FY22 Covid-19 environment is not an The days of mass-producing clothes excuse for not selling products. in quantities not needed by the Facing a very difficult environment market, burdening the environment, in 1H, we broke away from the and selling them at a reduced price “
Slide 4: Where we are now / The future we should aim for
3 1H 02/FY22 TIP24 ※ Reform position Break away from the business model of the past We will put aside nostalgia for past businesses and take on new challenges, aiming to further pursue corporate value. Where we are now The happiest fashion The future we should company in the world aim for 2023 Organ
Slide 5: 2 things we should do in 2H and beyond
4 Market Trends for 1H 02/FY22 Adherence to existing brands, sales channels, and business models means inefficient use of corporate assets, that is, people, goods, and money, and loss of market competitiveness and growth potential. 2 things we should do in 2H and beyond Get out of inefficient busine
Slide 6: Agenda
AGENDA 1 Summary of Financial Results for 1H, 02/FY22 2 1H Business Situation 3 Business Overview by Channel 4 Action on SDGs 5 Balance Sheet and Future Investment Strategy 6 Full-year Forecast 7 Supplemental Materials
Slide 7: Summary of Financial Results for 1H, 02/FY22
Summary of Financial 1 Results for 1H, 02/FY22
Slide 8: Financial Highlights
7 Financial Highlights for 1H 02/FY22 Under tough market, we united to work on our business. 1st half went well as planned. 1ST Half 1ST Half Net Sales 1ST Operating Profit Quarterly Net Income 64.75 Billion Yen 1.13 Billion Yen 1.89 Billion Yen YoY 115.1% Against Plan Change +1.16 billion yen YoY C
Slide 9: Financial Highlights for Q2 02/FY22
8 Financial Highlights for Q2 02/FY22 Net sales fell far short of the previous yearʼs level, but review of discounts/inventory/expense led to significant improvement in revenue against budget. Q2ND Q2ND Q2ND Net Sales Operating Profit Quarterly Net Income 30.54 Billion Yen -1.14 Billion Yen -0.54 Bi
Slide 10: Gross profit / SG&A expenses
9 Gross profit / SG&A expenses for 1H 02/FY22 Unit : Billion yen > Gross Operating Profit 550 Gross Profit 56.0% • Purchases were curbed to about 85.4% of the 500 54.3% 54.5% 55.0% previous fiscal year's level. 1ST Half Gross Profit 450 53.9% 53.6% 54.0% 35.29 Billion yen 400 53.0% • Profitability i
Slide 11: Difference from Disclosed Plan
10 Difference from Disclosed Plan for 1H 02/FY22 FY2/22 1H: \1.13 billion vs. disclosed plan of \-0.50 billion As the Covid-19 impacts prolong, the situation remains difficult standing at 90.8% of the sales plan. However, improved by \1.63 billion due to “big growth of golf and street casual brands”
Slide 12: Operating Profit Trends
11 Operating Profit Trends for 1H 02/FY22 > Operating Profit In the midst of the prolonged Covid-19 impacts, in terms Operating profit \1.13 billion of 1H results, profitable for the first time in four years. Profit ratio 1.8％ (Disclosed plan ‒\0.5 billion) 14.0 1.8% Unit 2.0%: Billion yen EBITDA \3
Slide 13: Net income impact items
12 Net income impact items for 1H 02/FY22 Non-operating income was \1.12 billion due to dividend income/real estate income, etc. Extraordinary income reached \1.45 billion due to gain on sales of marketable securities, gain on sales of fixed assets, etc. COVID-19 impacts caused loss due to temporary
Slide 14: 1H Business Situation
ese 2 1H Business Situation by JILLSTUART
Slide 15: Strong and weak businesses in Japan
14 Operating Profit Revenue Structure by Segment for 1H 02/FY22 About our strong businesses in Japan (1)Golf, athleisure and street brand continued to drive profits. (2)Ladiesʼ brand business quickly shifted to an EC-centered strategy, making a big contribution to revenue. We aim to expand the busin
Slide 16: Strong Golf Category for 1H 02/FY22
15 Strong Golf Category for 1H 02/FY22 In addition to the effect of the Olympics, we succeeded to get new fans by proposing new attractive products. All five golf brands exceeded the plan, sales at last year and year before last as a result. In addition to the release of "Doraemon" collaboration ite
Slide 17: Street Category for 1H 02/FY22
16 Street Category for 1H 02/FY22 Step into investments more on a brand business that drives the street boom. With UNION celebrating its 30th anniversary in its home After about 10 years, country, products that attract HUF opened a flagship attention from inside and shop again in San outside the str
Slide 18: Business Overview by Channel
3 Business Overview by Channel
Slide 19: Sales Trends by Channel
18 Sales Trends by Channel for 1H 02/FY22 Both composition rates of department stores and commercial facilities has decreased, but their sales has improved over 20% compared to the last year. EC channel went well. EC channels remained strong performance at 114.3% compared to year before last and at
Slide 20: E-Commerce
19 E-Commerce for 1H 02/FY22 EC Business: 101.2% year on year TSI, which has a high ratio of EC, is at a plateau, but we will reinforce investments in systems and mechanisms for further growth. Meanwhile, looking at the content of the revenue structure, the highly profitable in-house EC ratio is 47.
Slide 21: Brand Digital Communications
20 Brand Digital Communications for 1H 02/FY22 Brand action with a focus on digital communications. Live commerce and the D2C brand have also been successful. Arpege story D2C brand “MECRE” Strengthen customer contact points through live commerce Full-scale debut this fall EC sales increased 119% Yo
Slide 22: New Customer Contact Points for Brands
21 New Customer Contact Points for Brands for 1H 02/FY22 Some existing businesses has challenged new things, realizing collaboration with other brands and different types of industries. and wander is gaining momentum, nano・universe high-function T-shirts collaborating with 2 MONCLER 1952 Start selli
Slide 23: Action on SDGs
TS| HOLDENGS Stile Action on SDGs
Slide 24: SDGs promotion office
23 Action on SDGs Board/Management meeting/ In order to accelerate the implementation of Sustainability Committee the SDGs, we set up a promotion office. Formulate overall objective and budget policy We have tried to realize a sustainable society with a project team. In order to work in unison, we s
Slide 25: Environmental Initiatives expanding through Brands
24 Action on SDGs Environmental Initiatives expanding through Brands Commence activities that consider the environment through business Participation in “BRING™”, a clothing collection project Redyeing discarded products, we sell them as new products. Weaving flaws and uneven dyeing that occur durin
Slide 26: Sustainable corporate growth through work style reforms
25 Action on SDGs Achieve sustainable corporate growth through work style reforms To become a company, which is selected by an excellent human resources even under the new values of the future, we pursue a comfortable work environment for employees, the driving force of the company. Creating a safe
Slide 27: Balance Sheet and Future Investment Strategy
5 Balance Sheet and Future Investment Strategy
Slide 28: Balance Sheet and Future Investment Strategy
27 Balance Sheet and Future Investment Strategy > Cash & Deposits/Investment Securities Our financial position continues to be sound. • Cash and deposits increased of \8.9 billion YoY.The main difference from Stimulate investment in business investments for 02/FY23. the previous forecast is \2.3 bil
Slide 29: Global businesses and Future Financial Strategy
28 [Innovation in Profitability] About Future Financial Strategy About Global businesses-Introduction of the business in the U.S. Based on our global strategy, we have organized growing businesses such as snowboarding, skateboarding and street. In order to show our uniqueness, we will make beneficia
Slide 30: Digital Transformation Promotion
29 Digital Transformation Promotion for 1H 02/FY22 We will strengthen supply chain by digital transformation. We will continue to strengthen efforts to innovate business models and systems using technology. Started Smart Factory Custom-Made Obtained DX certification from the Ministry of Economy, We
Slide 31: Full-year forecast
TS! HOLDINGS ose 6 Full-year forecast
Slide 32: Sales performance and forecast
31 Sales performance and forecast We will not change the full-year operating profit budget and net profit budget at this stage. Although operating income in the first half was strong with a planned difference of +1.63 billion yen, business conditions on September, that is one of the most profitable
Slide 33: Our WILL
32 Our WILL Reprint of the Results Briefing Q1ST of 2022 Ending Feb. We will improve the soundness of the business with a precise management controlling. Besides, we wil achieve advanced business through supply chain reform, digital store development, new services, new content development, etc. We w
Slide 34: Striving to be the happiest fashion company in the world
Striving to be the happiest fashion company in the world. Becoming a company that creates happiness for our shareholders, customers, society and employees.
Slide 35: Reference Data
TSI HOLDINGS ese 7 Reference Data
Slide 36: Highlights of 1st Half Results: Overview (June to August)
35 Highlights of 1ST Half Results for FY Ending Feb. 2022 Overview Unit:Million Yen (June to August) Q2ND 2021 Ending Feb. Q2ND 2022 Ending Feb. Composition Composition Y/Y Results Results Y/Y (%) Rate (%) Rate (%) Change Net Sales 34,588 100.0 30,536 100.0 -4,052 88.3 Gross Profit 15,111 43.7 16,14
Slide 37: Highlights of 1st Half Results: Overview (March to August)
36 Highlights of 1ST Half Results for FY Ending Feb. 2022 Unit:Million Yen Overview 1ST Half 2021 Ending (March to August) Feb. 1ST Half 2022 Ending Feb. Composition Composition Y/Y Results Results Y/Y (%) Rate (%) Rate (%) Change Net Sales 56,270 100.0 64,751 100.0 8,480 115.1 Gross Profit 24,169 4
Slide 38: Net Sales Per Channel
37 Highlights of 1ST Half Results for FY Ending Feb. 2022 Unit:Million Yen Net Sales 1ST Half 2021 Ending 1ST Half 2022 Ending Feb. Per Channel Feb. Composition Results Composition Results Composition Y/Y (%) Rate Y/Y (Million yen) Rate (%) (Million yen) Rate (%) Change Department Stores 5,107 9.1 6
Slide 39: Brands Overview
38 Highlights of 1ST Half Results for FY Ending Feb. 2022 Unit:Million Yen Brands Overview 1ST Half 2021 Ending Feb. 1ST Half 2022 Ending Feb. Y/Y Composition Gross Profit Composition Gross Profit Gross Profit Sales Sales Sales (%) Rate (%) Ratio (%) Rate (%) Ratio (%) Ratio (pt) 1. nano・universe 8,
Slide 40: Domestic Monthly Sales Information
39 Highlights of 1ST Half Results for FY Ending Feb. 2022 Domestic Monthly Sales Information 1ST Half 2021 Ending Feb. All Stores Existing Stores Q1ST 2022 Ending Feb. All Stores：66.6％ All Stores：149.2％ Existing Stores：82.0％ Existing Stores：108.0％ 220.0 218.4 205.0 190.0 175.0 159.3 160.0 145.0 130.
Slide 41: The Number of Stores
40 Highlights of 1ST Half Results for FY Ending Feb. 2022 The Number of Stores 1ST H alf 2021 FY Ending Feb. St ore St ore 1ST H alf 2022 Y/Y Q2/Q4 En d in g Feb . 2021 O p en Clos e En d in g Feb . Change Change Domestic 983 872 +19 -43 848 -135 -24 Ap p arel Over seas 64 52 +1 -5 48 -16 -4 Total 1
Slide 42: Forward-looking statements notice
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.