Slide 1: Results Briefing: FY Ending Feb. 2021
Results Briefing: FY Ending Feb. 2021 13th April, 2021
Slide 2: Agenda
AGENDA Results Overview 1 FY Ending Feb. 2021 2 Vision 3 Full-year Consolidated Business Plan for FY Ending Feb. 2022 4 Future Growth Strategy 5 Reference Data
Slide 3: Results Overview
eco . see 1 Results Overview
Slide 4: Full-year Business Highlights for FY Ending Feb. 2021
4 Full-year Business Highlights for FY Ending Feb. 2021 Net Sales Operating Income Current Net Income 134.1 ー 11.84 3.86 Billion Yen Billion Yen Billion Yen YoY 78.8% YoY 117% YoY Change －11.91 Billion Yen YoY Change +1.68 Billion Yen Plan Ratio 101.4% It was a year of many unexpected turns. Althoug
Slide 5: 2nd Half Result Highlights
5 2nd Half Result Highlights for FY Ending Feb. 2021 Factors that Improved Business Performance with 2nd Half Plan Ratio > Net Sales: Plan Ratio of 102.5% (1) Existence of businesses with robust growth strength in the midst of Net Sales Operating Income Covid-19 Golf and street brands are strong 77.
Slide 6: Overview by Segment
6 Overview by Segment Lifestyle changes during the Coronavirus crisis have led to significant sales growth in golf, athleisure and street brands. Conversely, demand for occasion brands and visits to actual stores mostly in central Tokyo slumped. FY Ending Feb. 2020 FY Ending Feb. 2021 Percentage / C
Slide 7: Sales by Channel
7 Sales by Channel for FY Ending Feb. 2021 *1 Non-department store: Fashion building, station building, street store, outlet, etc. *2 Others: Wholesale and other apparel businesses, non-apparel business in group companies, etc. *3 Results of Efuego Corp, which operates EC sites centering on TACTICS
Slide 8: EC Sales Results
8 EC Sales Results for FY Ending Feb. 2021 Domestically, strengthening was undertaken mainly in-house. Overseas, sales for MARGARET HOWELL, HUF and In-house EC TACTICS were strong, leading to increases, with YoY sales reaching 118.3% (+6.8 billion yen) Brands with high engagement made breakthroughs,
Slide 9: About Differences from the Disclosure Plan
9 About Differences from the Disclosure Plan After the declaration of the state of emergency, the company posted a big loss in the 1st half of the fiscal year, so while indicating a revised plan, they organized a profit improvement project. And, as a result, the 2nd half saw improvements of 2 billio
Slide 10: Impact Items up to Current Net Income
10 Impact Items up to Current Net Income The company posted 8.64 billion yen as an extraordinary loss for partial loss due to impact of COVID-19, impairment loss, company reorganization costs, personnel adjustments and restructuring costs. Conversely, we recorded extraordinary income of 24.8 billion
Slide 11: About Consolidated Statement of Income
11 About Consolidated Statement of Income Even though the company has suffered the ■ Net Sales largest operating income deficit ever, they The company closed approximately 1,000 actual stores at have been able to make strategic investments the time of the first COVID-19 emergency declaration, an imm
Slide 12: About Consolidated Balance Sheet
12 About Consolidated Balance Sheet While market trends remain tough, the financial structure of the company is still ■ About Assets robust and sound. Cash and deposits An increase of 18.9 billion yen from previous year Unit:Million Yen means that for the time being the company will secure visible f
Slide 13: Summary of Previous Period
13 Summary of Previous Period A year dictated by COVID-19. Learning from this emergency, the company spent the year building the cornerstones of survival, whatever happens. Breakeven point • Halted business in unprofitable brands. Withdrew stores and cut labor costs. reduction • The company have int
Slide 14: Vision
eco ooo eee 2 VISION TS! HOLDINGS
Slide 15: 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 16: TSI Innovation Program 2024 Composition
16 Mid-period Reform Project TIP24 Composition For TIP24 to work, the company needs to change approaches and customs that have stood unaltered for 30 years. TSI INNOVATION PROGRAM 2024 TIP24 differs fundamentally from transformations that involve conventional withdrawals (restructuring). Instead, it
Slide 17: Survival = Generation of profit + Stakeholder happiness
17 TSI INNOVATION PROGRAM 2024 We will keep changing. Becoming a business entity that always survive. The happiest “Survival = Generation of profit + Stakeholder happiness” fashion company in the world 2023 Organizational integration 1st Phase completed 2022 2021 Growth and leap forward Brands that
Slide 18: The Company's Invaluable Approach
18 The Company's Invaluable Approach Always thinking of new ways to do things “This means continual sketching of the next scenario” Enjoy change, make change our Always rejecting the current situation ally, and create a new sense of “This means being relentless in bringing things to fruition” ethics
Slide 19: Full-year Consolidated Business Plan for FY Ending Feb. 2022
Full-year Consolidated 3 Business Plan for FY Ending Feb. 2022
Slide 20: Profit and Loss Plan for FY2022
20 Profit and Loss Plan for FY Ending Feb. 2022 YoY of 113.7% for net sales of 152.4 billion yen (compared to 89.6% for the year before last) SG&A expenses of 79.9 billion yen (composition ratio of 52.4%) Considering that the impact of Covid-19 will linger to some extent, the company are planning fo
Slide 21: About Sales Amount Forecast (1st Half & 2nd Half)
21 About Sales Amount Forecast (1st Half & 2nd Half) In the 1st half of the fiscal year, as a conservative forecast that strongly acknowledges the impact of COVID-19, the company forecasts an operating income of -500 million yen, which is 87.1% of year on year before last sales. Acknowledging the ad
Slide 22: Future Growth Strategy
TSI HOLDINGS 33 4 Future Growth Strategy
Slide 23: New Businesses and Brands
23 [Innovation in Creativity] New Businesses and Brands Bring together people, goods, capital, and information. Invest intensively in strategic Priority brands for this period brands. Drastic transformation of not only merchandising but also in creation itself × A concept of Fashion x Flower x Art f
Slide 24: Push ahead with transformation to create appealing stores
24 [Innovation in Creativity] New Businesses and Services High-profit stores spur on evolution Raise the appeal of existing stores, and make every effort to open new Push ahead with transformation to create stores! appealing stores. • Prime location strategy Simultaneously boost the sales channel •
Slide 25: Acquiring customers in new economic zone; D2C conglomerates
25 [Innovation in Creativity] New Businesses and Brands Acquiring customers in new economic zone. JUNNA (@junna total followers 180,000) Expand the business of D2C conglomerates. ETRA TOKYO Creative Directory In all areas of fashion, but particularly apparel, ETRE TOKYO is an influencer with a loyal
Slide 26: Enhancement of New Experiences, Services, and OMO Mechanisms
26 [Innovation in Creativity] Enhancement of New Experiences, Services, and OMO Mechanisms Create new experiences and innovative interaction with customers by making use of digital and sales staff capabilities. Increase opportunities for sales staff to play active roles. In addition to the appeal of
Slide 27: TS|_digitalPR(0914)
TS|_digitalPR(0914)
Slide 28: Data Management and Advanced Supply Chain
28 [Innovation in Profitability] Data Management and Advanced Supply Chain Raise managing speed in order to respond to erratic markets. Take initiatives to advance SCM via digitalization. The company will constantly visualize the budgetary and achievement differences in people, things and money, in
Slide 29: Product Presentation using 3D CAD
Product Presentation using 3D CAD - Evolution of Manufacturing - Revising Speed and Expense of Introduction into Product Market MANASTASH prototype Sample ETRE TOKYO prototype Sample
Slide 30: Redesign the social value of the apparel industry
[Innovation towards Environmental Orientation] 30 Solving Social Issues Through Business ❶ Pursue a sustainable manufacturing & sales model ✓Commercialize customized services and product upcycles Redesign the social value of the ✓Change to environmentally friendly apparel industry materials for seco
Slide 31: Sustainable manufacturing and sales model and recycling business
[Innovation towards Environmental Orientation] 31 Solving Social Issues Through Business Pursue sustainable manufacturing & sales model and recycling business for clothes Tackle social goals through business as well as work to reduce the massive waste generated in the fashion industry and tackle env
Slide 32: Contribute to solving social issues through the power of design
32 [Innovation towards Environmental Orientation] Solving Social Issues Through Business ⚫ Lifestyle value Create a playground where diverse cultures are born by combining diverse regional assets with TSI’s design & conceptual capabilities Planning to sign a comprehensive partnership agreement with
Slide 33: About Future Financial Strategy
33 About Future Financial Strategy Strategically invest in digital methods and new businesses while focusing on management stability. In the current uncertain market environment, for the time being, the company will secure cash on hand and determine the balance between the end of COVID-19 and growth
Slide 34: Shareholder Return Policy
34 Shareholder Return Policy The company plans to pay a dividend of 5 yen per share, taking into consideration the business results for the fiscal year under review and the future business environment. 6,000 Treasury stock 160.0 自己株式取得額 acquired 配当性向 Dividend ratio (%) 140.0 Regarding retained earni
Slide 35: In conclusion: #believe in the power of fashion
35 In conclusion TSI will evolve its business to regain trust. And we will prove to the market and our stakeholders that TSI is a company that can evolve. #believe in the power of fashion
Slide 36: 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.
Slide 37: Reference Data
TS| HOLDINGS Reference Data
Slide 38: Changes in monthly net sales
38 Highlights of Full-year Results for FY Ending Feb. 2021 Changes in monthly net sales ■ YoY All Stores Real Cumul 実店舗 eコマース EC 累計 store ative Q1ST：Cumulative 50.6% Q2ND：Cumulative 88.7% Q3RD：Cumulative 93.1% Q4TH：Cumulative 83.3% 124.8% 123.1% 124.5% 123.0% 121.5% 116.6% 114.8% 109.2% 105.1% 102.9
Slide 39: Domestic Monthly Sales Information
39 Highlights of Full-year Results for FY Ending Feb. 2021 Q1 Domestic Monthly Sales Information • From April, some 1,000 stores nationwide closed • From March to April, delivery delays for China-made products • Logistics warehouses come under strain after state of emergency declared in April • 29 d
Slide 40: Net Sales Per Channel
40 Highlights of Full-year Results for FY Ending Feb. 2021 Net Sales FY Ending Feb. 2020 FY Ending Feb. 2021 Per Channel Results Composition Results Y/Y (%) Composition Composition Rate (Million yen) Rate (%) (Million yen) Rate (%) Y/Y Change Department Stores 21,393 12.6 12,481 58.3 9.3 -3.3 Commer
Slide 41: Brands Overview
41 Highlights of Full-year Results for FY Ending Feb. 2021 ブランドの概況（通期） Unit:Million Yen Brands Overview FY Ending Feb. 2020 FY Ending Feb. 2021 Y/Y Composition Gross Profit Composition Gross Profit Gross Profit Sales Sales Sales (%) Rate (%) Ratio (%) Rate (%) Ratio (%) Ratio (pt) 1. nano・universe 2
Slide 42: Consolidated Financial Highlights (December to February)
42 Highlights of Q4 Results for FY Ending Feb. 2021 Consolidated Financial Unit:Million Yen Highlights -Profit and Loss- Q4TH 2020 Ending Feb. Q4TH 2021 Ending Feb. (December to February) Results Composition Results Composition Y/Y Y/Y (%) Rate (%) Rate (%) Change Net Sales 44,245 100.0 36,858 100.0
Slide 43: Consolidated Financial Highlights (September to February)
43 Highlights of 2nd Half Results for FY Ending Feb. 2021 Unit:Million Yen Consolidated Financial Cumulative 2ND half Cumulative 2ND half 2021 Ending Feb. Highlights -Profit and Loss- 2020 Ending Feb. (September to February) Results Composition Results Composition Y/Y Y/Y (%) Rate (%) Rate (%) Chang
Slide 44: Changes in number of stores and sales composition by channel
44 Sales by Channel for FY Ending Feb. 2021 Changes in the number of stores and sales composition ratio by channel Stores Department Stores E-Commerce (of Stores) 3,000 (%) 35 2,694 32.8 30.3 30 2,500 2,387 29.5 26.3 2,048 25 2,000 23.5 20.7 1,793 18… 21.4 20.8 1,558 20 1,500 1,338 16.0 1,229 15.3 1
Slide 45: Store Distribution
45 Summary of Previous Period Store Distribution FY Ending Store Store FY Ending Feb. 2020 *1 Open Close Feb. 2021 # of Stores 998 +85 -211 872 Domestic Change -23 -126 # of Stores 76 +9 -33 52 Overseas Change -67 -24 # of Stores 1,074 +94 -244 924 Total Change -90 -150 *1 Number indicated on "Chang
Slide 46: Withdrawal of Business and Impact on Employment Coordination
46 Summary of Previous Period Withdrawal of Business and Impact on Employment Coordination [Implementation Report] Withdrawal Reduction Withdrawal of stores of staff of business Withdrawal of 244 Reduction of 747 staff Withdrawal of 5 companies *Including 351 from headquarters and 7 businesses store
Slide 47: Profit and Loss Plans for 1st Half & 2nd Half
47 Profit and Loss Plans for FY Ending Feb. 2022 Profit and Loss Plans for 1st Half & 2nd Half 1st Half Plan 2nd Half Plan Full-year Plan 71.3 81.1 Net Sales Billion Yen Billion Yen 152.4 Billion Yen (YoY:126.7%) (YoY:104.2%) (YoY:113.7%) 38.5 41.4 SG&A Billion Yen Billion Yen 79.90 Billion Yen Expe
Slide 48: Disclaimer
48 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.