Tsi Holdings Co., Ltd. · TSE:3608
Tsi — Q3 FY2017 Earnings Presentation
18 slides from Tsi's earnings presentation, Jan 16, 2017
Slide 1: Results Briefing: Q3RD (March to November 2016) Results of 2017 Ending February
Results Briefing: Q3RD(March to November 2016) Results of 2017 Ending February 2017.1.16
Slide 2: I. Results Overview
I. Results Overview The amounts given in this material are rounded down to the nearest million yen 2 TSI HOLDINGS CO., LTD. All Rights Reserved.
Slide 3: Consolidated Financial Highlights - Profit and Loss
Consolidated Financial Highlights -Profit and Loss- Achieved about 2.3x operating profit Y/Y by improving gross profit and driving down SG&A expenses (Unit: Million Yen) Cumulative Q3RD Cumulative Q3RD 2016 Ending Feb. 2017 Ending Feb. Composition Composition Y/Y Results Results Y/Y Rate Rate Change
Slide 4: Victory Formula
Victory Formula (Unit: Million Yen) Cumulative Q3RD Accounting Item Content Result 2017 Ending Feb. E-commerce sales growth Net Sales E-Commerce +26.8% Y/Y 117,819(94.0% Y/Y) Cost of Last FY results 11.8% Direct Trading →12.6% at Q3RD 2017 Ending 51,942(90.7% Y/Y) Goods Sold Ratio Feb. ・Set KPI for
Slide 5: Sales Overview
Sales Overview Net sales of continuing brands(excluding closed brands and others) was 103.1% Y/Y (Unit: Million Yen) Net Sales Increased Brands Continuing Brands Comparison • nano・universe ①Financial Net Sales ②Monthly Revenue(All Stores) NATURAL BEAUTY BASIC 103.1％ • TOP10 • PEARLY GATES • STUSSY •
Slide 6: Brands Overview
Brands Overview 5 brands’ net sales increased and 8 brands’ gross profit ratio improved Y/Y (Unit: Million Yen) Cumulative Q3RD Cumulative Q3RD Y/Y 2016 Ending Feb. 2017 Ending Feb. Sales Gross Profit Sales Gross Profit Gross Profit Brand Sales Composition Ratio Composition Ratio Ratio 1 nano・univer
Slide 7: II. Progress of Growth Strategy
II. Progress of Growth Strategy 7 TSI HOLDINGS CO., LTD. All Rights Reserved.
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
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 Q3RD 2017 Ending Feb. and action plans for future • Operating profits of 10 subsidiaries increased Y/Y (6 subsidiaries last FY) due to last FY’s structural reform Portfolio • Implementing struc
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 Q3RD 2017 Ending Feb. and action plans for future • Sequential release of smartphone apps of brands in the second half of FY2017 Ending Feb. → Planning to launch apps of 18 brands in Q4TH • Stock
Slide 11: nano·universe Regrowth Plan
nano·universe Regrowth Plan Basic Principle Regrowth through group synergy and shift to a profitable company Action plan for future • Closure of low profitability stores and improve profitability of store operation Implementation of • Organizational Reform: integrate men’s and ladies’ departments to
Slide 12: ROSE BUD Regrowth Plan
ROSE BUD Regrowth Plan Basic Principle Improve profitability as quickly as possible by implementing measures and action plans below Action plan for future • Closure of low profitability stores Implementation of • Reduce office space by effective utilization of store idle properties (e.g. transfer of
Slide 13: III. Reference Data
III. Reference Data 13 TSI HOLDINGS CO., LTD. All Rights Reserved.
Slide 14: Domestic Comparable-Store Sales Rate
Domestic Comparable-Store Sales Rate Y/Y TOP10 TSI ALL 130.0% Cumulative Q3RD 2016 Ending Feb. Cumulative Q3RD 2017 Ending Feb. TOP10 : 95.2% TOP10 : 100.1% 120.0% TSI ALL: 96.2% TSI ALL: 98.2% 108.2% 110.0% 105.0% 106.0% 103.4% 100.2% 100.6% 99.0% 107.8% 98.4% 98.9% 97.5% 97.5% 100.0% 95.3% 95.2% 9
Slide 15: Net Sales Per Channel
Net Sales Per Channel (Unit: Million Yen) Cumulative Q3RD Cumulative Q3RD 2016 Ending Feb. 2017 Ending Feb. Composition Composition Composition Rate Results Results Y/Y Rate Rate Y/Y Change Department Stores 30,186 24.1% 25,068 83.0% 21.3% -2.8pt Commercial Facilities(*1) 61,554 49.1% 59,548 96.7% 5
Slide 16: Number of Stores
Number of Stores Q3RD 2016 Ending Feb. Q2ND 2017 Ending Feb. Store Open Store Close Q3RD 2017 Ending Feb. # of stores 1,401 1,235 20 24 1,231 Domestic Change + 39 -146 -4 # of Stores 228 214 4 21 197 Overseas Change +3 -8 -17 # of Stores 1,629 1,449 24 45 1,428 Total Change + 42 -154 -21 *Number ind
Slide 17: Glossary 1
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 BPR Stands for "Business Process Reengineering", which improves profitability by drastically revising and redesigning the existing
Slide 18: Glossary 2
Glossary 2 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 business of the US venture