Summary of Consolidated Financial Results
for the Third Quarter of Fiscal Year Ended February 29, 2024
[Japanese GAAP] (Consolidated)
January 12, 2024
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
Director, General Manager Corporate Headquarters, Mitsuru Naito
TEL: +81-3-5785-6400

Contact:

Scheduled date of financial report:
Scheduled date to begin dividend payment:

January 15, 2024―

Preparation of supplementary financial document:
Briefing session to explain the financial statements:

Yes
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 29, 2024(March 1, 2023 to November 30,
2023)(1) Consolidated results of operations(% change from the previous fiscal year)

Net sales

Third quarter of FY ended
February 29,2024
Third quarter of FY ended
February 28,2023

Operating income

Million yen%

114,857(0.5)

115,406

11.1

Million yen

Profit attributable toowners of parent

Ordinary income%

Million yen%

Million yen

2,223(40.3)

3,645(28.0)

3,290(28.8)

3,726(28.1)

5,061(18.9)

4,621(15.4)(Notes) Comprehensive income: Third quarter of Fiscal year ended February 29, 2024 ¥4,890 million(25.0)%
Third quarter of Fiscal year ended February 28, 2023 ¥6,518 million 26.5%
Net income
per share
Third quarter of FY ended
February 29,2024
Third quarter of FY ended
February 28,2023

Diluted net
income per share
Yen

Yen

40.04

―

52.69

―

(2) Consolidated financial position

Million yen

Million yen

Shareholders’ equity
ratio%

139,591

98,441

70.2

135,427

98,878

Total assets
Third quarter of FY ended
February 29,2024
FY ended February 28,2023

Net assets

72.7(Reference) Shareholders’ equity: Third quarter of FY ended February 29,2024
FY ended February 2023

¥98,060 million¥98,480 million

2. Dividends
Annual dividend
End of
1Q
Yen

End of
2Q
Yen

End of
3Q
Yen

Yen

Yen

FY ended February 2023

―

0.00

―

10.00

10.00

FY ended February 2024

―

0.00
―

15.00

15.00

FY ended February 2024
(forecast)Year-end(Note) Revisions during this quarter of dividends forecast for fiscal year: None

Total

%

3. Forecast of Consolidated Business Results for the Fiscal Year Ending February 29, 2024 (March 1, 2023 to February 29, 2024)(% change from the corresponding period of the previous fiscal year)
Net sales
Million yen
Full fiscal year

154,400

Operating income%(0.0)

Million yen
1,400

%

Ordinary income
Million yen(39.9)%

3,000(22.3)

Profit attributable toowners of parent
Million yen
28,000Net income
per share

%

Yen

(8.6)

34.06

(Note) Revisions during this quarter of previously disclosed consolidated business results projection for FY 2024: Yes＊Notes:(1) Changes in significant subsidiaries during the period: None
Changes in specified subsidiaries resulting in a change in the scope of consolidation(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: Yes
b. Changes in accounting policies other than above (a): Nonec. Changes of accounting estimates: Yes
d. Restatements: None

(Note) For details, please refer to "2. Consolidated Financial Statements and Major Notes, and (3) Notes to Consolidated Financial
Statements (changes in accounting policies)” on page 8 of attached materials.
(4) Number of shares issued (common stock)a. Number of shares issued
Q3 of FY ended February
at the end of period(treasury stock included) 2024
b. Number of treasury
Q3 of FY ended February
stock at the end of period 2024
c. Average number ofshares over the period

Q3 of FY ended February
2024

87,074,993 shares

FY ended February 2023

90,144,093 shares

8,888,693 shares

FY ended February 2023

5,878,463 shares

82,196,053 shares

Q3 of FY ended February
2023

87,716,937 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 2 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 2024 ····································· 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
Quarterly Consolidated Statements of Income ············································································· 6Current quarterly consolidated cumulative period ····································································· 6
Quarterly consolidated statement of comprehensive income ··························································· 7
Current quarterly consolidated cumulative period ····································································· 7(3) Notes to Quarterly Consolidated Financial Statements ······························································ 8
Going Concern Assumption ··································································································· 8Notes on Significant Changes in Shareholders’ Equity ······························································ 8
Change in an Accounting policy ····························································································· 8
Change in an accounting estimate· ························································································· 8
Additional Information ········································································································· 8
Segments of the Company and Related Information ·································································1011.

Qualitative Information on results for this quarter of FY ended February 2024

(1) Overview of Business Results
During Q3 of the consolidated cumulative period (March 1, 2023–November 30, 2023), in the apparel industry, while
there was a recovery in consumer spending as the impacts of the COVID-19 pandemic subsided, the situation remained
challenging due to a combination of factors, including a change in consumer sentiment toward apparel products
themselves due to COVID-19, soaring resource and raw material prices due to the conflicts in Ukraine and Palestine,
and the continued sharp decline of the yen.
In such a business environment, in order to transform itself into a "non-apparel-only company" and a "fashionentertainment creation company" as set out the new medium-term management plan called the "TSI Innovation
Program 2025 (TIP25)" announced in April 2022,the Group continues to drive forward fundamental reforms to its
profit structure and corporate structure in response to changes in the social environment and customer lifestyles
associated with the development of Digital Transformation (DX). Specifically, we focus on investing in growth businessareas, primarily in EC expansion, and aim to reform its profit structure by shifting the phase from withdrawing
unprofitable stores to opening large stores and reopening stores in prime locations, and developing attractive stores.
Meanwhile, the Group are determined to focus more on reforms in the area of sustainability, which is of growinginterest to customers, and will continue its efforts to reassure customers of the new value of the products offered by
the Group through a review of materials and manufacturing processes.
The Group has been working to secure over-the-counter sales and strengthen sales through e-commerce, as well as tocurb excess inventory and cost of goods sold by strictly monitoring product purchases and reducing them to appropriate
levels.
Consequently, the net sales stood at 114,857 million yen (down 0.5% year on year), the operating income was 2,223
million yen (down 40.3% year on year), and the ordinary income reached 3,645 million yen (down 28.0% year on year).
Furthermore, the quarterly profit attributable to owners of the Group’s parent was 3,290 million yen (down 28.8% year
on year).
Net sales by reportable segment were as follows.

Apparel-Related Businesses
With regard to each of the subsidiaries that comprise our apparel-related business, we focus on strengthening
profitability by investing in growth business areas, reforming real stores, and shifting to EC sales channels based on
the TIP25.
In the existing businesses, we saw robust performances of our brands, including the street brand “STUSSY,” which
continued to perform well, and the London collection brand “MARGARET HOWELL.” We strove to improve our
profitability by meeting market demand and rolling out products that leverage the features of each brand which are
tailored to customers’ diverse lifestyles, especially military fashion focused “AVIREX,” golf brand “PING,” and outdoor
fashion focused “and wander.”Despite these measures, the net sales in apparel-related businesses decreased by 0.6% compared with the previous
fiscal year to 110,918 million yen, due to factors such as higher temperatures than in previous years, which resulted
in a slowdown in the sale of autumn and winter items.

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 California, the U.S. Net sales were 4,542 million yen (up 3.7% compared with theprevious fiscal year ).

2

(2) Overview of Financial Position(Million yen)
At the end of FY ended
February 2023
(As of February 28, 2023)

At the end of 3Q FY ended
February 2024
(As of November 30, 2023)

Increase/decrease

Total assets

135,427

139,591

4,163

Liabilities

36,54941,1494,600

Net assets

98,87898,441

(436)

72.7%
¥1,168.69

70.2%¥1,254.19(2.5)%¥85.50Shareholders’ equity ratio
Net assets per share

Assets increased by ¥4,163 million, mainly due to increases in accounts receivable-trade (up ¥4,530 million from theend of the previous fiscal year) and inventories (up ¥8,075 million from the end of the previous fiscal year), despite adecrease in cash and deposits (down ¥9,093 million from the end of the previous fiscal year).
Liabilities increased by ¥4,600 million, mainly due to increases in notes and accounts payable–trade (up ¥946 million
from the end of the previous fiscal year), short-term borrowings (up ¥5,028 million from the end of the previous fiscal
year), “other” in current liabilities (up ¥714 million from the end of the previous fiscal year), and “other” in non-current
liabilities (up ¥1,011 million from the end of the previous fiscal year), despite a decrease in long-term borrowings(including current portion of long-term borrowings) (down ¥3,330 million from the end of the previous fiscal year).
Net assets decreased by ¥436 million, mainly due to a decrease in capital surplus (down ¥1,902 million from the endof the previous fiscal year) and an increase in treasury stock (up ¥2,572 million from the end of the previous fiscal
year), which is a deduction item in net assets, despite increases in retained earnings (up ¥2,439 million from the endof the previous fiscal year) and valuation difference on available-for-sale securities (up ¥955 million from the end of
the previous fiscal year).
As a result, net asset per share increased by ¥85.50.

(3) Explanation of Consolidated Business Forecast and Other Forward-looking Statements
We adjusted the business results projection for the year ending February 29, 2024, which was released on April 23,2023.
For details, please refer to the “Notice Concerning Revisions to Full-Year Financial Results Forecasts ” that was
released today (January 12, 2024).

3

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets
Previous consolidated
fiscal year
(As of February 28, 2023)(Million yen)
Quarter consolidated
accounting period ofcurrent fiscal year
(As of November 30, 2023)

AssetsCurrent assets
Cash and deposits
Notes receivable-trade32,205
127

23,111
87

Account receivable-trade
Merchandise and finished goods

10,60423,484

15,13431,723

636
559

392
638

Other
Allowance for doubtful accounts

4,261
(40)

3,471
(61)

Total current assets

71,83774,499

6,136

6,799

Goodwill
Other

1,922

1,800

7,024

6,359

Total intangible assets

8,946

8,159

27,8794,708

27,944
4,688

Allowance for doubtful accounts

16,023(105)

17,600(100)

Total investments and other assets

48,50650,132Work in process
Raw materials and supplies

Non-current assets
Property, plant and equipment
Intangible asset

Investments and other assets
Investment securities
Investment property
Other

63,58965,091

135,427

139,591

11,40717

12,354
5,045

4,737
626

3,853
498

1,301
124

1,700
68

Other

120
7,905

200
8,620

Total current liabilities

26,23932,342Long-term borrowings

5,010

2,562

Provision for retirement benefits for directors

37
1,188

35
1,219

Other

2,414
1,658

2,319
2,670

Total non-current liabilities

10,3098,807

36,54941,149Total 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 shareholder benefit program
Asset retirement obligations

Non-current liabilities

Retirement benefit liability
Asset retirement obligations

Total liabilities

4Previous consolidated
fiscal year
(As of February 28, 2023)(Million yen)
Quarter consolidated
accounting period ofcurrent fiscal year
(As of November 30, 2023)

Net assets
Shareholders’ equity
Share capital
Capital surplus

15,00025,93315,00024,030Retained earnings
Treasury stock

56,052(3,031)58,491(5,604)

Total shareholders’ equity

93,95391,917

3,802

4,758

969
(245)

1,560
(176)

4,526

6,142

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

397

381

98,87898,441

135,427

139,591

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

Net sales(Million yen)
Consolidated cumulative
Consolidated cumulative
Third quarter ofThird quarter ofprevious fiscal year
current fiscal year
(March 1,2022 to November (March 1,2023 to November
30, 2022)
30, 2023)
115,406
114,857

Cost of sales

50,04050,655Gross profit

65,36664,201

Selling, general and administrative expenses

61,63961,978Operating income

3,726

2,223

Interest income
Dividend income

19
460

50
758

Real estate income
Foreign exchange income

267
493

269
202

Other

283

318

1,524

1,600

55
41

38
36

93

102

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estate
Other

189

178

5,061

3,645

4

4

Other

839
129

1,397
19

Total extraordinary income

972

1,421

25

6

330
-

352
17

Other

159
166

17
92

Total extraordinary losses

682

486

Income before income taxes

5,352

4,580

Income taxes―current
Income taxes―deferred

1,201

1,387

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sale of investment securities

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities

Total income taxes
Net income
Net loss attributable to non-controlling interest
Net income attributable to owners of parent

6

(415)

(31)

785

1,355

4,567

3,224

(54)

(65)

4,621

3,290

Quarterly Consolidated statements of comprehensive income
Consolidated cumulative Third quarter

Net income
Other comprehensive income

Consolidated cumulative
Third quarter ofprevious fiscal year
(March 1,2022 to November
30, 2022)
4,567(Million yen)
Consolidated cumulative
Third quarter ofcurrent fiscal year
(March 1,2023 to November
30, 2023)
3,224

870

955

1,052
46

620
69

(18)

20

1,951

1,665

Comprehensive income

6,518

4,890

Total comprehensive income attributable to:
Owners of parent

6,463

4,906

54

(16)

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

Non-controlling interests7(3) Notes to Quarterly Consolidated Financial Statements

Going Concern Assumption
Not applicable

Notes on Significant Changes in Shareholders’ Equity
Not applicable

Change in an Accounting policy
Guidance on the Application of Accounting Standards for Fair Value Calculation“Guidance on the Application of Accounting Standards for Fair Value Calculation” (ASBJ Guidance No. 31, June 17,2021. Hereafter referred to as the “Guidance on the Application of Accounting Standards for Fair Value Calculation”).
The new accounting policy stipulated in the Guidance on the Application of Accounting Standard for Fair Value
Calculation is to be applied from the beginning of the first quarter of the current fiscal year, in accordance with thetransitional treatment stipulated in paragraph 27-2 of the Guidance on the Application of Accounting Standard for
Fair Value Calculation, and will be applied in the future as well. There is no impact on the quarterly consolidated
financial statements.

Change in an Accounting estimate
Valuation Criteria for Inventories
The Group has adopted a valuation criteria for inventories based on a certain devaluation rate determined inaccordance with the period since production or purchase during the forecasted periods of selling products and others.
The Group’s balance sheet amount is based on the devalued book value.
Under the medium-term management plan called the TSI Innovation Program 2025, the Group strives to build a
circular business model, which will minimize apparel waste to achieve a sustainable global environment through thepower of fashion entertainment.
Against this backdrop, the duration for selling a certain product, etc. has been extended. Now, we can understand thetrue status of the extended duration more accurately with sufficient volume of accumulated sales data.
Under such circumstances, in order to more appropriately reflect the reality of decreased profitability associated withinventories in the financial position and business results, the Group decided to extend some of the forecasted periodsof selling products and others related to the write-down of book value of inventories in the second quarter of the current
consolidated fiscal year.
As a result of this change, the cost of sales decreased by ¥146 million for the consolidated third quarter period that
ended on February 29, 2024. Consequently, operating income, ordinary income, and income before income taxes all
increased by the same amount.

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 beacquired by the Shareholding Association over a five-year period from April 2020 utilizing funds procured throughdebt finance. Thereafter, acquisition of the Company’s shares by the Shareholding Association will be undertakenby the Shareholding Association Trust. Meanwhile, TSI Holdings will guarantee the debt finance undertaken by
the Shareholding Association Trust.

8

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 endof the previous fiscal year under review were ¥187 million for 400,000 shares. And that as of the end of this fiscal
year under review were ¥152 million for 325,000 shares.
iii. Carrying Value of Debt Finance Posted Using the Gross Price Method
As of February 28, 2023: ¥255 million and as of November 30, 2023: ¥220 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)) planfor 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 atmarket 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 ¥279
million for 496,000 shares as of the end of the previous fiscal year and ¥273 million for 486,000 shares as of theend of this fiscal year under review.

Application of the accounting treatment and disclosure for the application of the group totalization system
The Company and some of its domestic consolidated subsidiaries have shifted from a consolidated tax payment
system to a group totalization system from the first quarter of the current financial year. In line with this, theaccounting treatment and disclosure of corporate and local income taxes and tax effect accounting are based on the"Treatment of accounting treatment and disclosure when applying the group totalization system" (Practical
Response Report No. 42, August 12, 2021; hereinafter referred to as "Practical Response Report No. 42"). In
accordance with Paragraph 32 (1) of the Practical Response Report No. 42, no impact is deemed to arise from changes
in accounting policies as a result of the application of the Practical Response Report No. 42.

9Segments of the Company and Related Information
1. Consolidated cumulative Third quarter of previous fiscal year (March 1,2022 to November 30, 2022)(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

111,468

3,883

115,351

55

115,406

92

497

590

(590)

―

111,560

4,380

115,941(535)

115,406

5,065

55

5,120

(1,394)

3,726Inter-segment sales or transfers
Total
Segment income
Notes:

1. Other, which doesn’t belong to respective reportable segments, includes synthetic resin-related, store design andmanagement and so on.
2. Segment income adjustment of ¥(1,394) million is transaction offsets among consolidated companies.
3. Segment income 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 the segment “apparel-related businesses,” book value of the stores which have decided to close, whose operating
income is continuously in red, and whose brands are to be closed, is supposed to be reduced to the recoverable amount.
And the decrease is posted as impairment loss in the extraordinary losses section
As a side note, the recorded amount of impairment loss in non-current assets was ¥266 million for the consolidated
six-month period that ended on November 30, 2022.

A significant change in the amount of goodwill
None

A significant gain from negative goodwill
None

10

2. Consolidated cumulative Third quarter of current fiscal year (March 1,2023 to November 30, 2023)(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

110,828

4,029

114,857―

114,857

90

569

659

(659)

―

110,918

4,598

115,516(659)

114,857

3,005

325

3,330

(1,107)2,223

Inter-segment sales or transfers
Total
Segment income
Notes:

1. Other, which doesn’t belong to respective reportable segments, includes synthetic resin-related, store design andmanagement and so on.
2. Segment income adjustment of ¥(1,107) million is transaction offsets among consolidated companies.
3. Segment income 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 the segment “apparel-related businesses,” book value of the stores which have decided to close, whose operating
income is continuously in red, and whose brands are to be closed, is supposed to be reduced to the recoverable amount.
And the decrease is posted as impairment loss in the extraordinary losses section
As a side note, the recorded amount of impairment loss in non-current assets was ¥352 million for the consolidated
six-month period that ended on November 30, 2023.

A significant change in the amount of goodwill
None

A significant gain from negative goodwill
None11