Tsi Holdings Co., Ltd. · TSE:3608
Tsi — H1 FY2023 Earnings Presentation
41 slides from Tsi's earnings presentation, Oct 13, 2022
Slide 1: Results Briefing: 1st Half (March to August 2022)
R e s u l t s B r i e f i n g : 1 st H a l f ( M a r c h t o August 2022)Results of 2023 Ending Feb. 13th October 2022
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: 1st Half Results: Executive summary
4 1st Half of Results of 2023 Ending Feb. : Executive summary [Summary of activities in the 1st half] ■ Environmental changes This first half began with “supply chain disruptions due to lockdowns in Shanghai from March.” “Conflicts,” “energy issues,” “increases in prices of daily necessities due to
Slide 5: 1st Half Results: Executive summary
5 1st Half of Results of 2023 Ending Feb. : Executive summary ■ Posting of 0.59 billion yen in the 1st half as head office relocation expenses; 100% or more operating profit from the previous term when excluding the expenses With the aim of integrating physical environments of business companies, we
Slide 6: Highlights of Results for 1st Half
6 Highlights of Results for 1st Half of Results of 2023 Ending Feb. ➢ Net sales were 111.3% (105.4% based on the old accounting standards) and +7.33 billion yen from the previous term. Real stores showed a steady recovery. The EC channel increased the ratio of its net sales to total net sales signif
Slide 7: Operating Profit Transition for 1st Half
7 Operating Profit Transition for 1st Half Results of 2023 Ending Feb. As with the first quarter, the well-performing golf and street businesses grew in the second quarter to achieve higher-than-forecasted, significant sales and profit growth. In the ladies’ domain, the business units which evolved
Slide 8: About Business Situation by Channel
2 About Business Situation by Channel
Slide 9: Sale Trends by Channel for 1st Half
9 Sale Trends by Channel for 1st Half Results of 2023 Ending Feb. Sales of real stores was 121.6% and +7.26 billion yen (based on new profit standards) from the previous term and recovered reliably. Outside Japan, business results were solid. Currency-exchange gain/loss expanded an impact on the amo
Slide 10: Sale Trends by Channel for 1st Half
10 Sale Trends by Channel for 1st Half Results of 2023 Ending Feb. A new line of the flagship brand NATURAL BEAUTY BASIC had been performing well. Outside Japan, HUF continued to perform well in the United States. MARGARET HOWELL performed solidly in Europe. Real store business Overseas business FB/
Slide 11: E-commerce in 1st Half
11 E-commerce in 1st Half Results of 2023 Ending Feb. In the first half, sales of EC was 19.77 billion yen and 97.0% from the previous term, ending in a sluggish performance. We increased product prices and conducted a currency exchange countermeasure for controlling markdowns on a company-wide basi
Slide 12: E-Commerce Current status and future efforts
12 E-Commerce Current status and future efforts in 1st Half Results of 2023 Ending Feb. The EC gross profit ratio was 57.1% and improved to 111.5% year-on-year. The profitability of EC improved further. The in-house channel focused on acquiring new members. The number of new members was 118.5% from
Slide 13: Brands Overview
3 Brands Overview
Slide 14: General situation of each brand in 1st Half
14 General situation of each brand in 1st Half Results of 2023 Ending Feb. Of the top 10 selling brands, total sales of the seven well-performing brands was 123.0% from the previous term, largely exceeding the company-wide average. The major brands steadily started business result growth and profit
Slide 15: Net income and the balance sheet
4 Net income and the balance sheet
Slide 16: Net Income Impact Items for 1st Half
16 Net Income Impact Items for 1st Half Results of 2023 Ending Feb. It includes 0.51 billion yen of a non-budgetary gain from dollar-based assets of overseas subsidiaries and others After adding 1.31 billion yen of non-operating revenue/loss, ordinary income was 1.89 billion yen. With regard to extr
Slide 17: About Balance Sheet
17 About Balance Sheet > Inventory assets We have been able to maintain healthy financial conditions. ・Year on Year We will invest strategies and management resources in businesses with growth Sales was 111.3% from the previous term, potential. while inventory was 116.4% and + three We will offer at
Slide 18: Initiatives in each area of TIP25
5 Initiatives in each area of TIP25
Slide 19: Medium-term management plan TIP25
19 TSI Holdings Group’s medium-term management plan “TIP25” Announced on April 14, 2022 Reprinted Medium-term management plan materials 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
Slide 20: 4 Business domains
20 4 Business domains Announced on April 14, 2022 Reprinted Medium-term management plan materials 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 impac
Slide 21: Business domains / Brand list
21 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, WARE-mo-KOU) 2. MASTER BUNNY EDITION 2. HUF 3. and wander 3. ROYAL FLASH 3. Jack
Slide 22: Wellness & Lifestyle: Creating attractive communities
22 Wellness & Lifestyle Creating attractive communities Sublimating apparel brands into community brands. Developing entertainment business closely linked to lifestyles. “Jack Bunny!!” Junior Golf Tour 2022 was held To nurture and back up next-generation 22,676 golfers, the Jack Bunny Junior Golf To
Slide 23: Street & Culture: Platform for play rooted in the street spirit
23 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, 20th anniversary “ONE HUF PROJECT” opens new stores aggressively and offering new experiences. 24,727 “HUF” was fo
Slide 24: Fashion Capital: Services responding to market trends
24 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. “Arpege story” has strengths in OMO strategies The brand provides services that leverage stre
Slide 25: Digital Generation: Expanding content for next generation
25 Digital Generation Continuously expanding content to win over the next generation of customers Obtaining a favorable response and generating strong excitement A new D2C brand “CHAROL” makes a debut through tangible and intangible content that expands infinitely. 6,112 From 22 AUTUMN / WINTER, we
Slide 26: Launch of a joint metaverse project with Alibaba Cloud and JP GAMES
26 × × Launch of a joint metaverse project with Alibaba Cloud and JP GAMES The “metaverse” is a three-dimensional virtual space and expected as a next-generation channel for EC sales. Beyond goods-selling channels, the three companies will jointly plan and develop new schemes and services for the “n
Slide 27: Initiatives related to the SDGs
6 Initiatives related to the SDGs
Slide 28: Information disclosure based on the TCFD recommendations
28 SDGs Information disclosure based on the TCFD recommendations We agree with the recommendations by TCFD and disclose the four items; “governance,” “risk management,” “strategy,” and “metrics and targets.” We visualized CO2 emissions of Scopes 1, 2 & 3 and set the reduction targets with an eye to
Slide 29: Toward realizing carbon neutrality by 2050
29 SDGs Toward realizing carbon neutrality by 2050 Based on risks, we formulate three innovation domains in order to create opportunities. Toward carbon neutrality by 2050, we will make strategies concrete. Specific examples of three opportunity-creating innovation domains and strategies ●Engagement
Slide 30: Sustainable topics in 1st half
30 SDGs Sustainable topics in 1st half From raw materials, manufacturing process to sales approaches, we drive sustainable product manufacturing that is environment- and human rights-conscious. We will create an environment where employees are easier to work while we value resources. TSI ALL GOLF BR
Slide 31: A project for developing TSI original organic cotton
31 SDGs A project for developing TSI original organic cotton We executed an outsourcing agreement with SynCom Agritech, an agricultural venture company, under the theme of the “study on development of TSI’s organic cotton and reforms of raw cotton productivity.” In the State of Tamil Nadu in India,
Slide 32: Full-year Forecast
TS! HOLDINGS eee see / Full-year Forecast
Slide 33: Upward adjustment of full-year consolidated profit and loss plan
33 Upward adjustment of full-year consolidated profit and loss plan for FY Ending Feb. 2023 Based on the business results for the 2Q cumulative consolidated period, we decided to adjust the expected business results for full-year consolidated profit and loss for the fiscal year ending in February 20
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
8 Reference Data
Slide 36: Overview: Highlights of 1st Half Results
36 Highlights of 1st Half Results for FY Ending Feb. 2023 ※2 Overview 1ST Half 2023 Ending Unit:Million Yen *1 (Revenue recognition standards) Feb. *2 1ST Half 2023 Ending Feb. Compositi Composit Y/Y Results on Results ion Y/Y (%) Change Rate (%) Rate (%) Net Sales 64,751 100.0 72,087 100.0 7,336 11
Slide 37: Net Sales Per Channel
37 Highlights of 1st Half Results for FY Ending Feb. 2023 Unit:Million Yen Net Sales *3 ※４※4※4 Per Channel 1ST Half 2022 Ending Feb. *4 1ST Half 2023 Ending Feb. (Revenue recognition standards) Composition Results Composition Results Composition Y/Y (%) Rate Y/Y (Million yen) Rate (%) (Million yen)
Slide 38: Brands Overview
38 Highlights of 1st Half Results for FY Ending Feb. 2023 Unit:Million Yen Brands Overview *1 1ST Half 2022 Ending Feb. *2 1ST Half 2023 Ending Feb. Y/Y (Revenue recognition standards) Composition Gross Profit Composition Gross Profit Gross Profit Sales Ratio (%) Sales Ratio (%) Sales (%) Ratio (pt)
Slide 39: Domestic Monthly Sales Information
39 Highlights of 1st Half Results for FY Ending Feb. 2023 Domestic Monthly Sales Information
Slide 40: The Number of Stores
40 Highlights of 1st Half Results for FY Ending Feb. 2023 The Number of Stores 1ST Half 1ST Half 2022 FY Ending Store Store Y/Y Q2/Q4 2023 Ending Ending Feb. Feb. 2022 Open Close Change Change Feb. Domestic 848 805 +18 -49 774 -74 -31 Apparel Overseas 48 41 - -1 40 -8 -1 合計 896 846 +18 -50 814 -82 -
Slide 41: Notes on forward-looking statements and translation
・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