Tsi Holdings Co., Ltd. · TSE:3608
Tsi — Q3 FY2022 Earnings Presentation
41 slides from Tsi's earnings presentation, Jan 17, 2022
Slide 1: Results Briefing: Q3RD (March to November 2021)
Results Briefing: Q3RD (March to November 2021) Results of 2022 Ending Feb. 17th January, 2022
Slide 2: Agenda
AGENDA 1 Results Overview 2 About Business Situation by Channel 3 Q3RD Business Situation 4 About Balance Sheet 5 About Full-year Forecast 6 Mid-term Management Plan and Action on SDGs 7 Reference Data
Slide 3: Covid-19 Impact on Q3RD Results of 2022 Ending Feb.
2 Covid-19 Impact on Q3RD Results of 2022 Ending Feb. The third quarter started in a harsh business environment due to the fifth wave of the COVID-19 pandemic. However, the number of store closures and shortened opening hours reduced thanks to the temporary end of the pandemic in late September and
Slide 4: Results Overview
1 Results Overview
Slide 5: Highlights of Results for Q3RD of Fiscal Year Ending in February 2022
4 Highlights of Results for Q3RD of Fiscal Year Ending in February 2022 Sales fell by 1.78 billion yen YoY due to the impact of the fifth wave of COVID-19 pandemic until September 2021, limited discount sale of products (one of our sale strategies), and other factors. Sales of current businesses rea
Slide 6: Highlights of Results for Cumulative Q3RD
5 Highlights of Results for Cumulative Q3RD of Fiscal Year Ending in February 2022 Keeping a strong eye on the market and economic trends, we have continued to maintain the balance of positive and negative approaches for our business. In terms of cumulative results as of Q3RD, gross profit was highe
Slide 7: Gross Profit/SG&A Expenses for Cumulative Q3RD
6 Gross Profit/SG&A Expenses for Cumulative Q3RD Results of 2022 Ending Feb. Unit : Billion yen > Gross Profit Gross Profit • Purchases were curbed by 95.1% YoY and 700 55.8% 55.8% 78.8% compared to the year before last. 第３四半期累計 Cumulative Q3RD 56.0% → Allowing for the recovery of inventory 650 54.9
Slide 8: Operating Profit Transition for Cumulative Q3RD
7 Operating Profit Transition Expenses for Cumulative Q3RD Results of 2022 Ending Feb. In the midst of the COVID-19 pandemic, we have achieved the highest operating profit as of the end of the third quarter. Unit : Billion yen Main factors Changing Balance of TSI’s Profit for the 1st Half and 3Q 5.1
Slide 9: Net Income Impact Items for Cumulative Q3RD
8 Net Income Impact Items for Cumulative Q3RD Results of 2022Ending Feb. Ordinary income was 6.23 billion yen including non-operating income of 1.48 billion yen due to dividend income /real estate income, etc. Extraordinary income reached 1.56 billion yen due to gain on sales of marketable securitie
Slide 10: About Business Situation by Channel
２ About Business Situation by Channel
Slide 11: Sale Trends by Channel for Cumulative Q3RD
10 Sale Trends by Channel for Cumulative Q3RD Results of 2022 Ending Feb. During the COVID-19 pandemic, we have adopted a strategy that focuses on profitability rather than sales volumes. As a result, revenue has improved, but sales can grow further. • Department stores/Commercial facilities: Growth
Slide 12: Strong Business in Japan
11 Operating income Revenue structure by segment for Q3RD Results of 2022 Ending Feb. Strong Business in Japan • Golf and street brands continued to drive profit. • A thorough structural reform has launched for our two leading brands: nano･universe and NATURAL BEAUTY BASIC that failed to go well in
Slide 13: E-commerce Sales Performance for Q3RD
12 E-commerce Sales Performance for Q3RD Results of 2022 Ending Feb. • The domestic EC ratio was at 33.9% with +10pt compared to year before last, but gross sales growth rate stepped up at 98.0% YoY due to the impact of some brand closure. • The in-house EC ratio significantly grew to 47.0% while en
Slide 14: Supply Chain Disruption / Impact on Gain
13 Supply Chain Disruption / Impact on Gain for September through November ■ The third quarter was the largest disruption period. The impact on the entire company was minor but it is necessary to continuously pay attention on the influence. • In Asian and Southeast Asian countries where TSI’s key pr
Slide 15: Street Category for Cumulative Q3RD
14 Street Category for Cumulative Q3RD Results of 2022 Ending Feb. HUF JAPAN significantly went well. Even during the COVID-19 pandemic, we have continued to achieve further growth with a focus on e-commerce strategy. ■ Ensuring continuous growth and sales channel ■ Q3RD Net Sales exchange in the mi
Slide 16: Q3RD Business Situation
Sie QO3RD Business Situation
Slide 17: Good Standing Golf Business for Cumulative Q3RD
16 Good Standing Golf Business for Cumulative Q3RD Results of 2022 Ending Feb. We have worked to organize and deliver exciting events and news, as well as develop new products for customers. Y/Y Unit : Billion Yen ゴルフカテゴリー Golf Business Net Sales 7,500 118.9% 7.23 第３四半期 Q3RD 売上高 2022 Ending Feb. Hol
Slide 18: Recovered Brand nano・universe
17 Recovered Brand [nano･universe] for Q3RD Results of 2022 Ending Feb. We saw the positive impact of structural reform in the third quarter. The OP ratio for Q3RD significantly grew by 5.2% compared to year before COVID-19 pandemic. ■ Q3RD Operating Profit (YoY) ■ A scenario for re-growth with stru
Slide 19: OMO Strategy
18 OMO Strategy for Cumulative Q3RD Results of 2022 Ending Feb. We have provided a consistency of online and offline customer experience. An alliance provides a framework respecting the identity of customers. Purchased WEB Store picked Try- / not Behavior visit up on purchased We analyze data and de
Slide 20: Recovered Brand nano・universe: Product Collaborations
19 Recovered Brand [nano･universe] for Q3RD Results of 2022 Ending Feb. Keeping pace with the changing lifestyle and entertainment trends during COVID-19 pandemic, we have offered a diverse line of products that reflect the identity of our brand “nano･universe.” Collaboration with long-established o
Slide 21: Strategically Focused Brand NATURAL BEAUTY BASIC
20 Strategically Focused Brand “NATURAL BEAUTY BASIC” for Q3RD Results of 2022 Ending Feb. Our brand, “NATURAL BEAUTY BASIC”, has begun collaborating with Wacoal’s brand “Wing” to scale customer bases. A combination of Wacoal’s technology and TSI’s design creates new value. Both companies will striv
Slide 22: About Balance Sheet
4 About Balance Sheet TS! HOLDINGS
Slide 23: About Balance Sheet
22 About Balance Sheet > Cash & Deposits Our financial position has continued to be sound by controlling the • [Compared to the previous results as of the end of August] balance of inventory as well as achieving good performance. Cash and deposits decreased by 4.7 (Unit : million yen) billion yen du
Slide 24: About Full-year Forecast
human woman 2021 A/W COLLECTION
Slide 25: Sales Performance and Forecast
24 Sales Performance and Forecast In October, net sales recovered to the level of the year before last following a decrease in COVID-19 infections. Facing a wave of Omicron cases, we are not optimistic about the current situation. However, we expect that net sales will reach between 82.2% and 85.3%
Slide 26: Performance Forecast and Upward Adjustment for 02/FY22
25 Performance Forecast and Upward Adjustment for 02/FY22 Based on the recent performance trends, we have decided to make an upward adjustment to the consolidated performance forecast for 02/FY22 that we have published on April 12, 2021. The details are shown below. Previously Published Adjusted For
Slide 27: Mid-term Management Plan and Action on SDGs
６ Mid-term Management Plan and Action on SDGs
Slide 28: TSI's Initiatives toward the SDGs
27 TSI’s Initiatives toward the SDGs Under our management principles, we have three key focuses to solve social issues. We will put more effort into the initiatives to publish sustainability reports and obtain public certification. Our Management Principles “Providing Creativity and Hospitality “Inv
Slide 29: Examples of TSI Group's Initiatives toward the SDGs
28 Examples of TSI Group’s Initiatives toward the SDGs １ Proposing ethical fashion using digital technology ２ Re-dyeing and selling discarded products as new products “FLOML” collaborates with Shimaai Farm on Ishigaki-jima island to come up with Weaving flaws and uneven dyeing that occur during the
Slide 30: TSI Carbon Neutral Vision 2050
29 Roadmap To be the happiest fashion company in the world, TSI Holdings will take further actions to achieve the SDGs. TSI Carbon Neutral Vision 2050 2050 Carbon Our journey toward zero carbon! Neutral Vision 2050 TSI INNOVATION PROGRAM 2025 2025 Fashion Entertainment × Solving Social Issues 2023 W
Slide 31: Establishment of Mid-term Management Plan (TIP25)
30 Establishment of Mid-term Management Plan (TIP25) We launched TIP24* in the fiscal year ended Feb. 2021, but were forced to suspend the plan for one year due to the COVID-19 pandemic. We will update it to the new mid-term management plan (TIP25)* for 2025 to take one more step. * TIP24 (TSI Innov
Slide 32: Formulation of Mid-term Management Plan, Overview of the SDGs and Major Factors
31 Formulation of Mid-term Management Plan, Overview of the SDGs and Major Factors ⮚ Our focus is on the SDGs as the core of management. We will share our human resources, organizational, and educational reform plan in mid-April. Mid-term Management Plan Medium Term Challenges and Strategy Agenda (f
Slide 33: Our WILL: Striving to be the happiest fashion company in the world
32 Our WILL Striving to be the happiest fashion company in the world. Becoming a company that creates happiness for our shareholders, customers, society, and employees. We will improve the soundness of the business with precise management controlling. Besides, we will achieve advanced business throu
Slide 34: Reference Data
7 Reference Data
Slide 35: Highlights of Q3RD Results for FY Ending Feb. 2022
34 Highlights of Q3RD Results for FY Ending Feb. 2022 Overview (Unit : million yen) Q3RD 2021 Ending Feb. Q3RD 2022 Ending Feb. Composition Composition Y/Y Results Rate (%) Results Rate (%) Change Y/Y (%) Net Sales 40,948 100.0 39,163 100.0 -1,785 95.6 Gross Profit 22,571 55.1 22,696 58.0 124 100.6
Slide 36: Highlights of Cumulative Q3RD Results
35 Highlights of Cumulative Q3RD Results of 2022 Ending Feb. Overview Cumulative Q3RD 2021 (Unit : million yen) Cumulative Q3RD 2022 Ending Feb. Ending Feb. Composition Composition Y/Y Results Rate (%) Results Rate (%) Change Y/Y (%) Net Sales 97,219 100.0 103,915 100.0 6,695 106.9 Gross Profit 46,7
Slide 37: Net Sales Per Channel
36 Highlights of Cumulative Q3RD Results of 2022 Ending Feb. Cumulative Q3RD 2021 Net Sales Ending Feb. Cumulative Q3RD 2022 Ending Feb. Per Channel Results Composition Results Composition Composition Rate Y/Y Y/Y (%) (Million yen) Rate (%) (Million yen) Rate (%) Change(pt) Department Stores 9,399 9
Slide 38: Brands Overview
37 Highlights of Cumulative Q3RD Results of 2022 Ending Feb. (Unit : million yen) Brands Overview Cumulative Q3RD 2021 Ending Feb. Cumulative Q3RD 2022 Ending Feb. Y/Y Composition Gross Profit Composition Gross Profit Gross Profit Sales Sales Sales (%) Rate (%) Ratio (%) Rate (%) Ratio (%) Ratio (pt
Slide 39: Domestic Monthly Sales Information
38 Highlights of Cumulative Q3RD Results of 2022 Ending Feb. Domestic Monthly Sales Information Cumulative Q3RD 2020 Cumulative Q3RD 2021 Ending Feb. Ending Feb. All Stores：74.6% All Stores： 103.6% Existing Stores ：83.4% Existing Stores：98.4%
Slide 40: The Number of Stores
39 Highlights of Cumulative Q3RD Results of 2022 Ending Feb. The Number of Stores Q3RD 2021 FY Ending Feb. Cumulative Q3RD Y/Y Q3/Q4 Store Open Store Close Ending Feb. 2021 2022 Ending Feb. Change Change Domestic 997 872 +24 ▲50 846 ▲ 151 ▲ 26 Apparel Overseas 50 52 +2 ▲7 47 ▲3 ▲5 Total 1,047 924 +2
Slide 41: 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.