Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ended February 28, 2022
[Japanese GAAP] (Consolidated)
January 14, 2022
Company name:

TSI HOLDINGS CO., LTD.

Stock listing: Tokyo Stock Exchange

Code number:

3608

URL: https://www.tsi-holdings.com/en/

Representative:

Representative Director and President, Tsuyoshi Shimoji

Contact:

Executive Officer, General Manager of Finance & Accounting Dept. Mitsuru Naito
TEL: +81-3-6748-0001

Scheduled date of financial report:

January 14, 2022

Scheduled date to begin dividend payment:―

Preparation of supplementary financial document:

Yes

Briefing session to explain the financial statements:

Yes (For institutional investors and analysts)(Rounded down to the nearest million yen)

1. Consolidated Business Results for the Third quarter of the Fiscal Year Ended February 28, 2022(March 1, 2021 to November 30,
2021)(1) Consolidated results of operations(% change from the previous fiscal year)

Net sales

Third quarter of FY ended
February 28,2022
Third quarter of FY ended
February 28,2021

Operating income

Million yen%

103,915

6.9

97,219(22.7)

Million yen

Profit attributable toowners of parent

Ordinary income%

Million yen

%

5,180

―

6,239

―

5,465

―

(8,271)―(7,012)―(11,126)―(Notes) Comprehensive income: Third quarter of Fiscal year ended February 28, 2022 ¥5,153 million―%
Third quarter of Fiscal year ended February 29, 2021 ¥(12,335) million―%
Net income
per share
Third quarter of FY ended
February 28,2022
Third quarter of FY ended
February 28,2021

Diluted net
income per share
Yen

Yen

60.54

―

(122.70)―(2) Consolidated financial position

Million yen

Million yen

Shareholders’ equity
ratio%

150,071

102,652

68.1

154,951

97,430Total assets
Third quarter of FY ended
February 28,2022
FY ended February 28,2021

Net assets

62.6(Reference) Shareholders’ equity: Third quarter of FY ended February 28,2022
FY ended February 2021

¥102,176 million¥96,977 million

2. Dividends
Annual dividend
End of
1Q
Yen

End of
2Q
Yen

End of
3Q
Yen

Yen

Yen

FY ended February 2021

―

0.00

―

0.00

0.00

FY ended February 2022

―
0.00

―

5.00

5.00

Year-end

Total

FY ended February 2022
(forecast)(Note) Revisions during this quarter of dividends forecast for fiscal year: None

Million yen%

3. Forecast of Consolidated Business Results for the Fiscal Year Ending February 28, 2022 (March 1, 2021 to February 28, 2022)(% change from the corresponding period of the previous fiscal year)
Net sales

Full fiscal year

Operating income

Ordinary income

Profit attributable toowners of parent

Million yen%

Million yen%

Million yen%

Million yen

140,600

4.9

2,400

―

3,800

―

2,300

Net income
per share%Yen(40.4)

25.47(Note) Revisions during this quarter of the previously disclosed consolidated business results projection for FY 2022:
Yes＊Notes:(1) Changes in significant subsidiaries during the period: Yes
Changes in specified subsidiaries resulting in a change in the scope of consolidation
Deselection 2 companies(SANEI-INTERNATIONAL CO.,LTD. and TSI GROOVE AND SPORTS CO.,LTD.)(2) Application of particular accounts procedures to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and restatements
a. Changes in accounting policies due to revisions of accounting standards: Noneb. Changes in accounting policies other than above (a): Nonec. Changes of accounting estimates: None
d. Restatements: None
(4) Number of shares issued (common stock)a. Number of shares issued
Q3 of FY ended February
at the end of period2022(treasury stock included)b. Number of treasury
Q3 of FY ended February
stock at the end of period 2022
c. Average number ofshares over the period

95,783,293 shares
5,431,228 shares

Q3 of FY ended February2022

FY ended February 2021

95,783,293 shares

FY ended February 2021

5,556,309 shares

Q3 of FY ended February
90,287,389 shares

2021

90,681,205 shares*This business results report is not subject to auditing by certified public accountants or audit firms.
*Explanation regarding the appropriate use of business forecasts and other special instructions
The forward-looking statements, including business forecasts, contained in this document are based on information currently
available to the Company and on certain assumptions deemed reasonable by the Company, and are not intended as a promise by
the Company that they will be achieved. Actual results may differ materially due to a variety of factors. Please refer to "(3)Explanation of Consolidated Business Forecast and Other Forward-looking Statements " on page 3 for the assumptions underlying
the forecasts and cautionary statements regarding the use of the forecasts.

Contents of Attached Materials
1. Qualitative Information on results for this quarter of FY ended February 2022 ····································· 2(1) Overview of Business Results ······························································································· 2(2) Overview of Financial Position ···························································································· 3(3) Explanation of Consolidated Business Forecast and Other Forward-looking Statements ··············· 3
2. Quarterly Consolidated Financial Statements and Major Notes ······················································ 4(1) Quarterly Consolidated Balance Sheets ·················································································· 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income··············· 6(3) Notes to Quarterly Consolidated Financial Statements····························································· 8
Going Concern Assumption ··································································································· 8Notes on Significant Changes in Shareholders’ Equity ······························································ 8
Additional Information ········································································································· 8
Segments of the Company and Related Information ·································································· 12

-1-

1.

Qualitative Information on results for this quarter of FY ended February 2022

(1) Overview of Business Results
During Q3 of the consolidated cumulative period (March 1, 2021–November 30, 2021), the apparel industry wasaffected by the COVID-19 pandemic. Although Japan’s intermittent state of emergency declarations ended on
September 30, 2021, people have continued to refrain from going out and the business hours of some commercial
facilities have remained shortened. As a result, sales remain affected.
Under such a business environment, our group is using the TSI Innovation Program 2024 (TIP24) as a springboard to
focus attention on withdrawing from unprofitable businesses and shops, reducing labor costs, and reducing SG&A
expenses across the entire company. Following this, we will shift to a phase that involves boosting efforts in the rapidly
growing area of EC business, and breaking into IT system business and other new business, etc. We will also actively
invest for the future to maximize profitability in the group.
Moreover, after the takeover merger in March 2021 as the first step aimed at unifying our group companies into one
company (our subsidiary Sanei BD Co., Ltd. absorbed 8 other subsidiaries, with the post-merger trade name changed
to TSI Inc.), with the aim of further improving decision-making speed and operational efficiency.
Although the number of new COVID-19 cases in Japan has continued to decline after the state of emergency was lifted
on September 30, 2021, consumer confidence has not completely recovered as restraints on public movement have notceased. Given the decrease in the number of customers visiting our stores, the in-store sales of our group companies
continue to be dire despite signs of recovery. Therefore, we have invested an unprecedented level of effort into measures
such as strengthening sales through EC and curbing excess inventory by carefully monitoring product purchases.
Net sales by reportable segment were as follows.

Apparel-Related Businesses
Based on the above TIP24, TSI Group subsidiaries composing our apparel-related businesses have made efforts bywithdrawing unprofitable businesses and store and by reducing SG&A such as labor costs across the entire company.
Based on the medium-term management strategy, TSI Group subsidiaries continued to improve profits by reforming
existing brands and streamlining operations. Amid the need to manage high market value brands that are unique andare price competitive, the Group worked diligently to strengthen its profitability by rolling out products that take fulladvantage of special features in its existing businesses including PEARLY GATES, MASTER BUNNY EDITION and
NEW BALANCE GOLF of golf apparel brands, MARGARET HOWELL which showcases in London Fashion Week,
CADUNE of a ladies brand, UNDEFEATED, which revolves mainly around sneakers. Despite these endeavors, wehave suffered from COVID-19 including shorten its business hours because of continuation of the state of emergency.
In the e-commerce business, we tried to increase sales by strengthening in-store and online coordination including theconsolidation of in-store inventory to e-commerce stock, online customer service and OMO.
Through these initiatives, net sales of the apparel-related businesses reached ¥100,243 million (up 6.2% year on year).

Other Businesses
Companies within TSI Holdings’ other businesses include S-Groove Co., Ltd., which in addition to fulfilling a sales
function for Group operating companies engages in paid employment placement and worker dispatching activities,
Toska-Bano’k Co., Ltd., active in the manufacture and sale of synthetic resin related products, Plax Co., Ltd., which
engages in store design and supervision as well as restaurant operations, Laline JAPAN Co., Ltd., which procures andsells a variety of products including cosmetics, perfumes, and soaps, and Urth Caffe JAPAN Co., Ltd., which operates
in Japan a popular organic café in the U.S., California. Net sales in this segment decreased by 39.4% compared with-2-

the previous fiscal year, to ¥3,833million owing mainly to subsidiary integration.
(2) Overview of Financial Position(Million yen)
At the end of FY ended
February 2021
(As of February 28, 2021)

At the end of 3Q FY ended
February 2022
(As of November 30, 2021)

Increase/decrease

Total assets

154,951

150,071(4,879)Liabilities

57,52147,419(10,101)

Net assets

97,430102,652

5,222

Shareholders’ equity ratio
Net assets per share

62.6%

68.1%

5.5%

¥1,074.81¥1,130.87¥56.06

The total assets decreased by ¥4,879 million from the end of the previous fiscal year, despite increases in notes andaccounts receivable-trade (up ¥4,505 million), inventories (up ¥4,260 million), and investment securities (up ¥1,332
million). This was mainly due to the decrease in cash and deposits (down ¥14,182 million) and the decrease in otherof investments and other assets (down ¥919 million).
Liabilities decreased by ¥10,101 million from the end of the previous fiscal year, despite an increases decrease in notes
and accounts payable–trade (up ¥2,287 million) .This was mainly due to a decrease in income taxes payable (down¥1,948 million) and a decrease in other current liabilities (down ¥3,795 million) and a decrease in long-termborrowings including current portion of long-term borrowings (down ¥6,409 million).
Net assets increased by ¥5,222 million from the end of the previous fiscal year, despite a decrease in Valuationdifference on available-for-sale securities (down ¥790 million). This was mainly due to an increase in retained earnings(up ¥5,465 million) and an increase in foreign currency translation adjustment (up ¥442 million).
As a result, net asset per share increased by ¥56.06.
(3) Explanation of Consolidated Business Forecast and Other Forward-looking Statements
We adjusted the business results projection for the year ending February 28, 2022, which was released on April 21,
2021. For details, please refer to the “Notice Concerning Revisions to Full-Year Financial Results Forecasts ” that was
released today (January 14, 2022).

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets
Previous consolidated
fiscal year
(As of February 28, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts(Million yen)
Quarter consolidated
accounting period ofcurrent fiscal year
(As of November 30, 2021)

49,871
10,88817,034
544
821
3,594
(39)

35,68815,393974
21,704
296
658
3,914
(46)

82,71478,585

8,149

7,546

Goodwill
Other

5,266
7,404

4,884
7,248

Total intangible assets

12,67012,132

28,872
4,980
17,670(106)

30,204
4,956
16,750(105)

51,41651,806

72,237

71,485

154,951

150,071

11,607
152
8,915
2,196
1,336
426

13,894
129
7,035
248
1,663
489

Provision for shareholder benefit program
Provision for sales returns
Asset retirement obligations
Other

126
289
12
10,906

93
323
111
7,110

Total current liabilities

35,96931,100Retirement benefit liability
Asset retirement obligations
Other

16,082
42
1,040
2,344
2,042

11,552
37
982
2,152
1,593

Total non-current liabilities

21,551

16,31857,52147,419Total current assets
Non-current assets
Property, plant and equipment
Intangible asset

Investments and other assets
Investment securities
Investment property
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for point card certificates

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors

Total liabilities-4-Previous consolidated
fiscal year
(As of February 28, 2021)
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets-5-(Million yen)
Quarter consolidated
accounting period ofcurrent fiscal year
(As of November 30, 2021)

15,00029,25552,213(3,747)

15,00029,25557,679(3,688)92,72098,246

4,812

4,022

(469)
(86)

(27)
(65)

4,256

3,929

452

475

97,430102,652

154,951

150,071(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly consolidated statements of income
Consolidated cumulative Third quarter

Net sales
Cost of sales

Consolidated cumulative
Third quarter ofprevious fiscal year
(March 1,2020 to November
30, 2020)
97,21950,478(Million yen)
Consolidated cumulative
Third quarter ofcurrent fiscal year
(March 1,2021 to November
30, 2021)
103,91545,924Gross profit

46,741

57,991

Selling, general and administrative expenses

55,012

52,810Operating income (loss)(8,271)

5,180Interest income
Dividend income
Real estate income
Foreign exchange income
Other

18
810
1,014
500

24
553
216
233
452

Total non-operating income

2,344

1,481

168
110
28
466
311

86
14
114
206

1,084

421

Ordinary income (loss)(7,012)

6,239

Extraordinary income
Gain on sales of non-current assets
Gain on sale of investment securities
Subsidies for employment adjustment

1,828
218
438

391
809
33

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of investment securities
Rental expenses on real estate
Other
Total non-operating expenses

Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on sale of investment securities
Loss on valuation of investment securities
Loss due to temporary closing

-

329

2,485

1,563

56
1,822
9
41
2,414

81
223
1,193

Voluntary retirement related expenses

143

-

Other

418

36

Total extraordinary losses

4,906

1,535

Income(loss) before income taxes(9,433)

6,268

Income taxes―current
Income taxes―deferred

366
1,396

646
181

Total income taxes

1,762

827

Net income（loss）(11,196)

5,441

Net loss attributable to non-controlling interest
Net income (loss) attributable to owners of parent

-6-

(70)

(24)

(11,126)

5,465

Quarterly Consolidated statements of comprehensive income
Consolidated cumulative Third quarter

Net income(loss)
Other comprehensive income

Consolidated cumulative
Third quarter ofprevious fiscal year
(March 1,2020 to November
30, 2020)(11,196)(Million yen)
Consolidated cumulative
Third quarter ofcurrent fiscal year
(March 1,2021 to November
30, 2021)
5,441

(989)
(184)
39

(790)
473
21

(5)

7

Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for using equity method
Total other comprehensive income(1,139)(287)

Comprehensive income(12,335)

5,153

Total comprehensive income attributable to:
Owners of parent
Non-controlling interests(12,257)
(77)

5,139
13

-7-

(3) Notes to Quarterly Consolidated Financial Statements

Going Concern Assumption
Not applicable

Notes on Significant Changes in Shareholders’ Equity
Not applicable

Change of accounting estimate
In the first quarter of the current consolidated cumulative period, there is no prospect of convergence in preventing
the spread of new coronavirus infections.
We have changed the estimate for the allowance for bonuses recorded in the previous consolidated fiscal year.
As a result of this change, operating income, ordinary income, and income before income taxes for the first quarter ofthe current consolidated cumulative period will be increased.
It has increased by 587 million yen.

Valuation Criteria for Inventories
The Company has adopted a valuation criteria for inventories based on a certain devaluation rate determined inaccordance with the period since production or purchase. The Company’s balance sheet amount is based on thedevalued book value. While we were affected by the expansion of covid-19, we've changed the sales policy and holded
down purchase and sales cost and along with that, we tried to improve the portion of the proper sales.
Consequently, the existing write-down rate deviates from that which would have been applied if the latest sales results
had been reflected. We therefore decided to reflect the latest sales results in the write-down rate that evaluates thebook value effective for the six-month period under review. The change in the estimation method was made to reflect
decline in inventory-related profitability more appropriately in the Company’s financial position and operating results.
As a result of this change, the cost of sales decreased by ¥1,077 million in the Third Quarter of the current fiscal year.
Consequently, operating income, ordinary income, and income before income taxes increased by the same amount,respectively.

Additional Information
Trust-Type Employee Stock Ownership Plan (ESOP)TSI Holdings resolved at a Board of Directors’ meeting held on April 13, 2020 to reintroduce a trust-type employee
stock ownership plan (ESOP) as an incentive plan and part of its efforts to provide benefits for its employees.
i. Overview of the Plan
The Company has established a trust (the Shareholding Association Trust). The beneficiaries of the Shareholding
Association Trust are members of the TSI Employee Shareholding Association (the Shareholding Association) who
have met certain requirements.
The Shareholding Association Trust acquired in advance a number of TSI Holdings shares projected to be acquiredby the Shareholding Association over a five-year period from April 2020 utilizing funds procured through debt
finance. Thereafter, acquisition of the Company’s shares by the Shareholding Association will be undertaken by the
Shareholding Association Trust. Meanwhile, TSI Holdings will guarantee the debt finance undertaken by the
Shareholding Association Trust.
ii. Shares of the Company Remaining in the Trust
The shares of the Company remaining in the Trust are posted as shares of treasury stock in the net assets section
at their carrying amount in the Trust. The carrying amount and number of shares of treasury stock as of the end of
the previous fiscal year under review were ¥325 million for 696,000 shares. And that as of the end of this fiscal year
under review were ¥273 million for 584,000 shares.

-8-

iii. Carrying Value of Debt Finance Posted Using the Gross Price Method
As of February 28, 2021: ¥359 million and as of November 30, 2021: ¥334 million,

Board Benefit Trust (BBT)In accordance with a proposal put forward at the Company’s 5th General Meeting of Shareholders held on May 25,
2016, TSI Holdings introduced a performance-linked stock compensation (Board Benefit Trust (BBT)) plan for its
directors and delegated executive officers as well as Group company directors (eligible officers).
i. Outline of the Transaction
Under the plan, the Company’s shares are acquired through a trust using money contributed by the Company asfunds. Eligible officers receive the Company’s shares equivalent to the points granted in accordance with the levelof performance achievement, etc., and money equivalent to the amount of the Company’s shares converted at market
value as of the date of retirement (the Company’s shares, etc.), pursuant to the officer stock delivery regulations.
Meanwhile, the timing of receipt of the benefits of the Company’s shares, etc. by eligible officers shall, in principle,
be upon their retirement from office.
ii. Shares of the Company Remaining in the Trust
The shares of the Company remaining in the Trust are posted as shares of treasury stock in the net assets section
at their carrying amount in the Trust. The carrying amount and number of shares of treasury stock were ¥288
million for 512,000 shares as of the end of the previous fiscal year and ¥280 million for 499,000 shares as of the endof this fiscal year under review.

-9-Application of tax effect accounting for the transition from the consolidated taxation system to the group tax
sharing system
For the transition to the group tax sharing system established under the “Act for Partial Amendment of the Income
Tax Act, etc. (Law No. 8, 2020) and for items that were reviewed in the non-consolidated taxation system inconjunction with the transition to the group tax sharing system, subject to the treatment of paragraph 3 of the“Application of tax effect accounting for the transition from the consolidated taxation system to group tax sharing
system” (Practical Issues Task Force No. 39, March 31, 2020), the Company and certain domestic consolidated
subsidiaries do not apply the provisions of paragraph 44 of the “Guidance on Accounting Standards for Tax EffectAccounting” (ASBJ Guidance No. 28, February 16, 2018) and calculate the amount of deferred tax assets anddeferred tax liabilities in accordance with the provisions of pre-revision tax laws.)
Non-equity method companies excluded from the scope of application of the equity method because their impact
on the Company's net income/loss (amount corresponding to the Company's equity interest) and retained
earnings (amount corresponding to the Company's equity interest) is not material and their overall importanceis not significant.

Group reorganization (absorption-type merger organized by the Company and 14 consolidated subsidiaries)
At a meeting of its board of directors held on December 16, 2020, we resolved to undertake a reorganization withthe aim of integrating each of its apparel operating companies into a single company over the following threestages, with a scheduled completion date of March 1, 2023.
As a side note, at a meeting of its board of directors held on January 14, 2022, as we resolved to change thecompanies to be merged on March 1,2022, we will disclose a schedule of the reorganization as soon as we resolveit.
1. Stage 1: Absorption-type merger between consolidated subsidiaries on March 1, 2021
The Transaction under common control(1) Overview of the Transaction
i. Names and Businesses of the Combining Companies
Name of the Combining Company:

SANEI bd CO., LTD.

Business:

Apparel business

Names of the Combined Companies:

SANEI-INTERNATIONAL CO., LTD.
TSI GROOVE AND SPORTS CO., LTD.
nano universe CO., LTD.
anglobal Ltd.
Rose Bud Co., Ltd.
Isolar Co., Ltd.
TSI EC STRATEGY CO., LTD.
TSI PRODUCTION NETWORK CO., LTD.

Business:

Apparel businessii. Date of Business Combination
March 1, 2021 and March 12,2021
iii. Legal Form of Business Combination
Absorption-type merger with SANEI bd CO., LTD., as the surviving company, and SANEIINTERNATIONAL CO., LTD., TSI GROOVE AND SPORTS CO., LTD., nano universe CO., LTD., anglobalLtd., Rose Bud Co., Ltd., Isolar Co., Ltd., TSI PRODUCTION NETWORK CO., LTD., and TSI EC
STRATEGY CO., LTD., as the companies to be merged.
iv. Name of the Company after Business Combination
SANEI bd CO., LTD. (new corporate name: TSI Inc.)- 10 -

v. Other Matters Related to the Transaction
Nine consolidated subsidiaries underpinned by the same internal information systems, human resources,and other systems were the subject of the absorption-type merger.
(2) Overview of the Accounting Treatment Applied
Pursuant to the “Accounting Standard for Business Combinations” (Accounting Standards Board of Japan(ASBJ) Statement No. 21 issued on January 16, 2019 and the “Guidance on Accounting Standard for Business
Combination and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10 issued on January
16, 2019), the absorption-type merger was treated as an under common control transaction.
2. Stage 2: Absorption-type merger between consolidated subsidiaries on March 1, 2022
At a meeting of its board of directors held on January 14, 2022, TSI Holdings’ Board of Directors resolved toundertake an absorption-type merger with TSI Inc., as the surviving company, and consolidated subsidiaries
Ueno Shokai Co., Ltd., as the companies to be merged on the scheduled date of March 1, 2022(scheduled).
Regarding Jack Clothing Co., Ltd., Arpege Co., Ltd., Star Joinus Co., Ltd., and And Wonder Co., Ltd, though
they were described to be merged, we will disclose a schedule as soon as we resolve it because of the delay of thestandardization of infrastructure.

(1) Overview of the Transaction
i. Names and Businesses of the Combining Companies
Name of the Combining Company

TSI Inc.

Business:

Apparel business

Names of the Combined Companies:

Ueno Shokai Co., Ltd.

Business:

Apparel businessii. Date of Business Combination
March 1, 2022 (scheduled)iii. Legal Form of Business Combination
Absorption-type merger with TSI Inc., as the surviving company, and consolidated subsidiaries Ueno
Shokai Co., Ltd., as the companies to be merged.
iv. Name of the Company after Business Combination
TSI Inc.
v. Other Matters Related to the Transaction
After promoting the sharing of the same internal information systems, human resources, and other systems,
the aforementioned non-combining company will be subject to an absorption-type merger.
(2) Overview of the Accounting Treatment Applied
Pursuant to the “Accounting Standard for Business Combinations” (Accounting Standards Board of Japan(ASBJ) Statement No. 21 issued on January 16, 2019 and the “Guidance on Accounting Standard for Business
Combination and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10 issued on January
16, 2019), plans are in place to treat the absorption-type merger as an under common control transaction.

- 11 -

Segments of the Company and Related Information
1. Consolidated cumulative Third quarter of previous fiscal year (March 1,2020 to November 31, 2020)(1) Net sales, income or losses, assets and other items by reportable segments
Reportablesegment
Other
Total
Note 1
Apparel-related
businesses

Adjustments
Note 2

Consolidated
financialstatements
amount(Note 3)

Net sales
Sales to third parties

94,212

2,944

97,156

62

97,219Inter-segment sales or transfers

194

3,377

3,572

(3,572)―

Total

94,406

6,322

100,729(3,509)97,219(8,641)(94)(8,736)464(8,271)

Segment income (loss)
Notes:

1. Other, which doesn’t belong to respective reportable segments, includes synthetic resin-related, store design andmanagement and so on.
2. Segment income (loss) adjustment of ¥464 million is transaction offsets among consolidated companies.
3. Segment income (loss) is adjusted to operating income listed in the consolidated financial statements.
(2) Goodwill or impairment loss in non-current assets by reportable segments

Important impairment loss in non-current assets
In segment apparel-related businesses, book value of the stores which are decided to close, and whose operating
income are continuously in red, and whose brands are decided to close, are supposed to be reduced to recoverable
amount. And the decrease is posted as impairment loss in the extraordinary losses section.
As a side note, recorded amount of impairment loss in non-current assets were ¥1,822 million as of the end of thisfiscal year under review.

A significant change in the amount of goodwill
None

A significant gain from negative goodwill
None- 12 -

1.

Consolidated cumulative Third quarter of current fiscal year (March 1,2021 to November 30, 2021)(1) Net sales, income or losses, assets and other items by reportable segments
Reportablesegment
Other
Total
Note
1
Apparel-related
businesses

Adjustments
Note 2

Consolidated
financialstatements
amount(Note 3)

Net sales
Sales to third parties

100,164

3,677

103,84173

103,915

78

156

235

(235)

―

100,243

3,833

104,076(161)

103,915

4,949

59

5,009

171

5,180

Inter-segment sales or transfers
Total
Segment income (loss)
Notes:

1. Other, which doesn’t belong to respective reportable segments, includes synthetic resin-related, store design andmanagement and so on.
2. Segment income (loss) adjustment of ¥171 million is transaction offsets among consolidated companies.
3. Segment income (loss) is adjusted to operating income listed in the consolidated financial statements.
(2) Goodwill or impairment loss in non-current assets by reportable segments

Important impairment loss in non-current assets
In segment apparel-related businesses, book value of the stores which are decided to close, and whose operating
income are continuously in red, and whose brands are decided to close, are supposed to be reduced to recoverable
amount. And the decrease is posted as impairment loss in the extraordinary losses section.
As a side note, recorded amount of impairment loss in non-current assets were ¥223 million as of the end of thisfiscal year under review.

A significant change in the amount of goodwill
None

A significant gain from negative goodwill
None- 13 -