Tsi Holdings Co., Ltd. · TSE:3608
Tsi — H1 FY2024 Earnings Presentation
41 slides from Tsi's earnings presentation, Oct 16, 2023
Slide 1: Results Briefing: 1st Half (March to August 2023)
Results Briefing:1st Half (March to August 2023)Results of 2024 Ending Feb. 16th October 2023 Security code：3608
Slide 2: Agenda
AGENDA 1 Results Overview 2 About Business Situation by Channel 3 Brands Overview 4 Initiatives in each area of TIP25 5 Initiatives related to the SDGs 6 Full-year Forecast 7 Management conscious of capital costs and share prices 8 Reference Data
Slide 3: Results Overview
１ Results Overview
Slide 4: Highlights of Results for 1st Half of 2024 Ending Feb.
4 Highlights of Results for 1st Half of Results of 2024 Ending Feb. Net sales exceeded those for the previous year, but the sales plan was not achieved as the major brands and the overseas business struggled. The operating income plan was not achieved, either, due to the effects of slow-moving inven
Slide 5: Changes in financial results for the 1st Half
5 Changes in financial results for the 1st Half of Results of 2024 Ending Feb UNIT:Billion yen Gross Profit > Gross Profit 500 50.0 56.5% 55.7% 60.0% • Foreign exchange fluctuations and sharp rises Gross Profit 53.6% 54.5% 400 40.0 55.0% in the prices of raw materials • Increase in price reductions
Slide 6: Net Income Impact Items for 1st Half
6 Net Income Impact Items for 1st Half Results of 2024 Ending Feb. Ordinary income, including non-operating income/loss such as dividend income and real estate revenue, was ¥1.6 billion. Net income for the first half of the term, including ¥410 million in extraordinary income/loss such as gains on s
Slide 7: About Balance Sheet
7 About Balance Sheet > Cash and Deposits 1ST Half 2023 Ending Cumulative Q1ST 【Comparison with the previous term】 1ST Half 2024 Ending Feb. Feb. 2024 Ending Feb. Affected by increases in inventory assets and the Composition Composition Composition Y/Y Q2/Q1 repayment of borrowings totaling ¥5.4 bil
Slide 8: About Business Situation by Channel
２ About Business Situation by Channel
Slide 9: Sale Trends by Channel
9 Sale Trends by Channel for 1st Half Results of 2024 Ending Feb. Cumulative net sales continued to grow, but while some channels performed well, others did not. We will strove to secure profits while balancing between aggressive and defensive sales. • Department stores and non-department stores (FB
Slide 10: E-commerce in 1st Half
10 E-commerce in 1st Half Results of 2024 Ending Feb. EC sales for the first half of the term were ¥18.45 billion, or 93.4% of the previous year’s level. They remained sluggish partly because of the effects of withdrawal of some businesses*1. As consumer confidence declined due to rises in the price
Slide 11: Brands Overview
３ Brands Overview
Slide 12: Individual Overview of Major Brands
12 Individual Overview of Major Brands in 1st Half Results of 2024 Ending Feb. Net sales for eight of the top ten brands in terms of sales exceeded those for the previous year. Among those brands, “MARGARET HOWELL”, “AVIREX”, and “STUSSY” continued to perform well as in the previous year, achieving
Slide 13: Initiatives in each area of TIP25
４ Initiatives in each area of TIP25
Slide 14: Medium-term management plan TIP25
14 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 15: TIP25 4 Divisions (domains)
15 TIP25 4Div.(domains) Announced on April 14, 2022 Medium-term management plan materials reposted Wellness & Lifestyle 1 Street & Culture 2 Wellness & lifestyle Street & culture Create fashion entertainment Nurture street culture and Athleisure Street that has a positive impact create fashion Outdo
Slide 16: TIP25 4Div. Brand Placement Map
16 TIP25 4Div.(ドメイン) / ブランド配置図 Wellness & Lifestyle 1 Street & Culture 2 Wellness & Lifestyle Div. Street & Culture Div. 1. PEARLY GATES 10. MHL. 1. STÜSSY 9. B’2nd 2. PGG 11. Dice&Dice 2. HUF 10. BEAVER 3. MASTER BUNNY EDITION 12. SEVEN BY SEVEN 3. UNION 11. LHP 4. Jack Bunny!! 13. quitan 4. BAIT 1
Slide 17: Wellness & Lifestyle: Creating attractive communities
17 Wellness & Lifestyle Creating attractive communities ¥23,679 million Sublimating apparel brands into community brands. 32.8% N e t s a l e s Yo Y c h a n g e Ratio 売上高to Developing entertainment business closely linked to lifestyles. total sales 構成比 ¥23.67 104.2 Billion ％ Popular golf brands gath
Slide 18: Street & Culture: Platform for play
18 Street & Culture Platform for play rooted in the street spirit ¥25,652 million By extending to the keyword “play,” the platform aims at Net sales Yo Y c h a n g e 35.6% spreading itself to neighboring lifestyles, reinventing gears, Ratio to 売上高 and offering new experiences. total 構成比 sales ¥25.65
Slide 19: Fashion Capital
19 Fashion Capital Services that respond constantly to market trends and changes ¥17,023 million Being flexible enough to continue changing gracefully, granting the wishes of customers, and extending a circle of happiness. Net sales YoY change 23.6% Ratio 売上高 to total sales ¥17.02 103.9 構成比 Billion
Slide 20: Digital Generation
20 Digital Generation Continuously expanding content to win over the next generation of ¥5,744 million customers 8.0% Net sales YoY change Obtaining a favorable response and generating strong excitement Ratio 売上高to total 構成比 sales through tangible and intangible content that expands infinitely. ¥5.7
Slide 21: Initiatives related to the SDGs
５ Initiatives related to the SDGs
Slide 22: Acquiring SBTi certification for GHG targets
22 SDGs Acquiring SBTi certification for GHG emissions reduction targets SBT Initiative (SBTi) certified TSI Holdings’ greenhouse gas (GHG) emissions reduction targets as those based on the scientific grounds established by the Paris Agreement. In accordance with the purpose “Using the power of fash
Slide 23: Making progress in sustainable innovation
23 SDGs Making progress in sustainable innovation In order to achieve its GHG emissions reduction targets, the Company is carrying out a wide variety of initiatives such as promoting business models with less environmental impacts and educating employees. It will strive to create sustainable innovat
Slide 24: Sustainable community development with Kamikawa Town
24 SDGs Initiative for sustainable community development with Hokkaido’s Kamikawa Town Since it entered into a comprehensive community agreement in October 2021, the Company has carried out community development initiatives on a continuous basis. The town government and TSI are promoting co-creation
Slide 25: Full-year Forecast
LDINGS eee see 6 Full-year Forecast
Slide 26: Plan for the entire term
26 Plan for the entire term At present, the operating income and net income plans for the entire term are not changed. During the first half of the term, the Company was forced to struggle with its operating income ¥470 million less than initially planned, but by taking the measures listed below dur
Slide 27: Shareholder returns
27 Shareholder returns The acquisition of treasury stocks, which had been done since January 2023, was completed in September. The 3,069,100 shares thus acquired are planned to be written off at the end of October. TSI Holdings has announced that it will acquire additional treasury stocks as part of
Slide 28: Management conscious of capital costs and share prices
７ Management conscious of capital costs and share prices
Slide 29: Understanding of the present condition (1): PBR = ROE × PER
29 Understanding of the present condition (1) (Analysis of PBR and comparison with other companies in the industry) TSI Holdings goes below the average in the valuation of PBR and ROE. The issue to be addressed is ROE Market Net income PBR = ROE × PER capitalization Market capitalization Net assets
Slide 30: Understanding of the present condition (2): ROE and PBR
30 Understanding of the present condition (2) (Changes in and the current status of TSI’s ROE and PBR) Since ROE was low compared to the level of shareholder’s equity cost TSI recognized, PBR has continued to be 1.0 or less. As indicated in the comparison on the previous page “Understanding of the p
Slide 31: Understanding of the present condition (3)
31 Understanding of the present condition (3) TSI aims at improving ROE by improving profitability, stepping up its efforts to return profits to shareholders, and cutting down on non-business assets to achieve greater asset efficiency. Net income PBR ROE ratio Improve the 0.61 3.5% 2.2% profit ratio
Slide 32: Targets of indicators
32 Targets of indicators Based on the foregoing, TSI has set targets of indicators. The Company is considering measures to achieve targets set for these indicators from various aspects: business processes, financial capital, and non-financial information. It plans to disclose specific measures in Ap
Slide 33: A company creating fashion entertainment
Nurture worldwide empathy and social value through the power of fashion entertainment. A company creating fashion entertainment
Slide 34: Reference Data
233 8 Reference Data PARIS! HOLDINGS ~
Slide 35: Highlights of Q2 Results: Overview
35 Highlights of Q2ND Results of 2024 Ending Feb. Unit:Million Yen Q2ND 2023 Ending Overview Feb. Q2ND 2024 Ending Feb. (Revenue recognition standards) Composition Composition Y/Y Results Rate (%) Results Rate (%) Y/Y (%) Change Net Sales 33,965 +100.0 33,905 +100.0 -60 99.8 Gross Profit 18,387 +54.
Slide 36: Highlights of 1st Half Results: Overview
36 Highlights of 1st Half Results for FY Ending Feb. 2024 Unit:Million Yen 1ST Half 2023 Ending Overview Feb. 1ST Half 2024 Ending Feb. (Revenue recognition standards) Composition Composition Y/Y Results Rate (%) Results Rate (%) Y/Y (%) Change Net Sales 72,087 100.0 73,278 100.0 1,190 101.7 Gross P
Slide 37: Net Sales Per Channel
37 Highlights of 1st Half Results for FY Ending Feb. 2024 Unit:Million Yen Net Sales 1ST Half 2023 Ending 1ST Half 2024 Ending Feb. Per Channel Feb. (Revenue recognition standards) Results Composition Results Composition Comp os it ion Rat e Y/Y (%) (Million yen) Rate (%) (Million yen) Rate (%) Y/Y
Slide 38: Brands Overview
38 Highlights of 1st Half Results for FY Ending Feb. 2024 Unit:Million Yen 1ST Half 2023 Ending Feb. 1ST Half 2024 Ending Feb. YoY Brands Overview (Revenue recognition standards) Composition Gross Profit Composition Gross Profit Gross Profit Sales Sales Sales (%) Rate (%) Ratio (%) Rate (%) Ratio (%
Slide 39: Domestic Monthly Sales Information
39 Highlights of 1st Half Results for FY Ending Feb. 2024 Domestic Monthly Sales Information 1St Half 2023 Ending Feb. 1St Half 2024 Ending Feb. All Stores：102.6％ All Stores：102.3％ Existing Stores：102.8％ Existing Stores：106.5％
Slide 40: The Number of Stores
40 Highlights of 1st Half Results for FY Ending Feb. 2024 The Number of Stores 1ST Half 2023 FY En d in g Store Store 1ST Half 2024 Y/Y Q 2/Q 4 En d in g Feb . Feb . 2023 Open Close En d in g Feb . Ch an ge Ch an ge Do me stic 774 738 +32 -37 733 -41 -5 Appa re l Ove rse a s 40 29 +1 - 30 -10 1 Tota
Slide 41: 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. ・This document has been translated from the Japanese or