Tsi Holdings Co., Ltd. · TSE:3608
Tsi — Q3 FY2023 Earnings Presentation
42 slides from Tsi's earnings presentation, Jan 16, 2023
Slide 1: Results Briefing: Q3RD (March to November 2022)
Results Briefing: Q3RD (March to November 2022) Results of 2023 Ending Feb. 16th January 2023
Slide 2: Agenda
AGENDA 1 Results Overview 2 About Business Situation by Channel 3 Brands Overview 4 Net income and the Balance sheet 5 Initiatives in each area of TIP25 6 Initiatives related to the SDGs 7 Full-year Forecast 8 Reference Data
Slide 3: Results Overview
1 Results Overview
Slide 4: Q3RD Results: Executive summary
4 Q3RD Results of 2023 Ending Feb. : Executive summary [Summary of operations during the third quarter] Market environment After October 11, 2022, the government substantially relaxed its COVID-19 border control measures, eliminating the upper limit to the number of foreign tourists who were allowed
Slide 5: Highlights of Results for Q3RD
5 Highlights of Results for Q3RD Results of 2023 Ending Feb. ➢ In general, domestic and overseas sales, particularly non-apparel and overseas sales, continued to be strong. With net sales up by ¥11.49 billion to 111.1% (105.3% based on the old accounting standards) of the previous term’s level, the
Slide 6: Operating Profit Transition for Q3RD Results
6 Operating Profit Transition for Q3RD Results of 2023 Ending Feb. In the women's apparel business, TSI’s key business sector, department stores recovered. The OMO enhancement and D2C businesses continued to be strong. In addition, following the previous year and the first half of the current term,
Slide 7: About Business Situation by Channel
２ About Business Situation by Channel
Slide 8: Sale Trends by Channel: Domestic
8 Sale Trends by Channel for Q3RD Results of 2023 Ending Feb. Sales for real stores continued to be strong, growing by ¥9.65 billion to 117.4% of the previous term’s level (up ¥5.29 billion to 109.5% of the previous term’s level if based on the old accounting standards). Continuing from the first ha
Slide 9: E-commerce in Q3RD Results
9 E-commerce in Q3RD Results of 2023 Ending Feb. Cumulative EC sales for the third quarter recovered steadily, registering ¥31.07 billion, 101.0% of the previous term’s level (new revenue recognition standards). Sales for the EC business, which had struggled during the first half of the year, in the
Slide 10: Sale Trends by Channel for Q3RD Results
10 Sale Trends by Channel for Q3RD Results of 2023 Ending Feb. Department store women's brands such as LE PHIL, human woman, ADORE recovered. The EC business escaped from stagnation in the first half of the year and entered a growth phase again. Real store business EC business Real stores: 117.4% of
Slide 11: Brands Overview
３ Brands Overview
Slide 12: Individual Overview of Major Brands in Q3RD Results
12 Individual Overview of Major Brands in Q3RD Results of 2023 Ending Feb. The percentage of top ten brands in terms of sales further increased from 58.4% at the end of the first half of the year to 58.9%, indicating that major brands continued to be strong or recovered. In particular, men’s street
Slide 13: Net income and the balance sheet
４ Net income and the balance sheet
Slide 14: Net Income Impact Items for Q3RD Results
20Net Income Impact Items for Q3RD Results of 2023 Ending Feb. 2月期 14 Ordinary income was ¥5.06 billion, including unplanned foreign exchange profits from overseas subsidiaries’ dollar- denominated assets, etc. at ¥490 million and dividend incomes, real estate revenues, and other non-operating reven
Slide 15: About Balance Sheet
15 About Balance Sheet > Inventory assets [Comparison with the previous term] While sales were 111.1% of the previous term’s Unit:Million Yen level, inventory assets were 124.8% of the Cumulative Q3RD 1ST Half 2023 Cumulative Q3RD 2023 Ending Feb. previous term’s level or an increase of ¥5.6 billion
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: 4 Business domains
18 4 Business 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 impact
Slide 19: Business domains / Brand list
19 4 Business domains / Brand list Wellness & Lifestyle 1 Street & Culture 2 Wellness Div. Lifestyle Div. Street Div. Culture Div. 1. PEARLY GATES 1. MARGARET HOWELL 1. STÜSSY 1. NANO universe 2. MHL. 2. B’2nd (GARDEN,吾亦紅) 2. MASTER BUNNY EDITION 2. HUF 3. and wander 3. ROYAL FLASH 3. Jack Bunny!! 3
Slide 20: Wellness & Lifestyle: Creating attractive communities
20 Wellness & Lifestyle Creating attractive communities Sublimating apparel brands into community brands. Developing entertainment business closely linked to lifestyles. Even after the golf boom, “PING“ achieved substantial growth 3Q cumulative sales results Since 2021, PING have continued 36,472 1.
Slide 21: Street & Culture: 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 spreading itself to neighboring lifestyles, reinventing gears, “HUF” put on a grand finale for its anniversary year and offering new experiences. In 2022, which marked the 20th
Slide 22: Fashion Capital: Services that respond 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. “CADUNE” continued to grow despite the spread of the COVID- 19 pandemic 25,467 The CADUNE bra
Slide 23: Digital Generation: Expanding content to win over next generation
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” offers new encounters and experience The real store at GIN
Slide 24: Digital Generation: Expanding content to win over next generation
24 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. Through rebranding, two JILLs started with their 2023 S/S Collections JIL
Slide 25: Office Concentration Project
25 Office Concentration Project The relocation of offices began in September 2022, and the major part of the project has been completed. In the next term, the rents are expected to be ▲ Stepping up efforts to communicate information as a reduced by ¥500 million. medium of marketing by installing sev
Slide 26: Launching proof of concept (PoC) mainly in PEARLY GATES brand
26 × × Launching proof of concept (PoC) mainly in the PEARLY GATES brand The company has started to consider implementing content services, including planning and operational verification, in order to realize such services. The 3D data on clothes TSI manufactures using the 3D simulation “CLO” are ta
Slide 27: Initiatives related to the SDGs
６ Initiatives related to the SDGs
Slide 28: Specific measures to realize carbon neutrality in 2050
28 SDGs Specific measures to realize carbon neutrality in 2050 We will review raw materials to promote a shift to low-carbon materials. At the same time, we will invest in the sustainable production of raw materials and reuse and recycle clothing resources, thus producing environmentally friendly pr
Slide 29: Project to develop TSI's original organic cotton
29 SDGs Project to develop TSI’s original organic cotton TSI entered into a business outsourcing agreement with SynCom Agritech, a venture firm in agricultural management. The main theme of the agreement is research to develop TSI’s organic cotton and improve cotton productivity. The trial cultivati
Slide 30: Business and capital alliances with Food Reborn
30 SDGs Forming business and capital alliances with Food Reborn In October of last year, TSI concluded a business alliance agreement with Food Reborn, a start-up based in Okinawa Prefecture. In January of this year, TSI plans to invest in the start-up after it forms a capital alliance with it. It wi
Slide 31: Working with Seni-Ikueikai to recycle fiber resources
31 SDGs Working with Seni-Ikueikai to establish a system to recycle fiber resources Remnants of plain cloth generated at the time of production and discarded clothing are collected and upcycled into new cloth. TSI will treat limited resources carefully and implement projects friendly to the global e
Slide 32: Full-year Forecast
eco sss 7 Full-year Forecast
Slide 33: Full-year Forecast
33 Full-year Forecast In December, as commercial facilities recovered, the women's and street brand businesses, TSI’s key business sectors, continued to report financial results as correction planned. The prospects of consolidated financial results for the whole year, which were revised upward on Oc
Slide 34: A company creating fashion entertainment
Nurture worldwide empathy and social value through the power of fashion entertainment. A company creating fashion entertainment
Slide 35: Reference Data
TS! HOLDINGS Reference Data “ESPEARYGATES Pear YR
Slide 36: Highlights of Q3RD Results for FY Ending Feb. 2023
36 Highlights of Q3RD Results for FY Ending Feb. 2023 Unit:Million Yen Overview Q3RD 2022 Ending Q3RD 2023 Ending Feb. ※2 (Revenue recognition standards) Feb. *1 *2 Composition Composition Y/Y Results Results Y/Y (%) Rate (%) Rate (%) Change Net Sales 39,163 100.0 43,318 100.0 4,154 110.6 Gross Prof
Slide 37: Highlights of Cumulative Q3RD Results
37 Highlights of Cumulative Q3RD Results for FY Ending Feb. 2023 Unit:Million Yen Overview Cumulative Q3RD 2022 Cumulative Q3RD 2023 Ending Feb. ※2 (Revenue recognition standards) Ending Feb. *1 *2 Compositi Composit Y/Y Results on Results ion Y/Y (%) Change Rate (%) Rate (%) Net Sales 103,915 100.0
Slide 38: Net Sales Per Channel
38 Highlights of Cumulative Q3RD Results for FY Ending Feb. 2023 Unit:Million Yen Net Sales Cumulative Q3RD 2022 Cumulative Q3RD 2023 Ending Feb. ※4 Per Channel Ending Feb. *3 *4 (Revenue recognition standards) Composition Results Composition Results Composition Y/Y (%) Rate Y/Y (Million yen) Rate (
Slide 39: Brands Overview
39 Highlights of Cumulative Q3RD Results for FY Ending Feb. 2023 Brands Overview (Revenue recognition standards) Unit:Million Yen *1 *2 compared to Cumulative Q3RD 2022 Ending Feb. Cumulative Q3RD 2023 Ending Feb. Y/Y year before last Composition Gross Profit Composition Gross Profit Gross Profit Gr
Slide 40: Domestic Monthly Sales Information
40 Highlights of Cumulative Q3RD Results for FY Ending Feb. 2023 Domestic Monthly Sales Information Cumulative Q3RD 2022 Ending Feb. Cumulative Q3RD 2023 Ending Feb. All Stores：103.6％ All Stores：101.3％ Existing Stores：98.4％ Existing Stores：102.6％
Slide 41: The Number of Stores
41 Highlights of Cumulative Q3RD Results for FY Ending Feb. 2023 The Number of Stores Cumulative Q3RD 2022 FY Ending Store Store Y/Y Q3/Q4 Q3RD 2023 Ending Feb. Feb. 2022 Open Close Change Change Ending Feb. Domestic 846 805 +33 -59 779 -67 -26 Apparel Overseas 47 41 - -12 29 -18 -12 合計 893 846 +33
Slide 42: ・Descriptions about future within this document are based on the information that the company
・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