Results Briefing: FY Ending Feb. 2023

13th April 2023

AGENDA
1

Results Overview FY Ending Feb. 2023

2

About Business Situation by Channel

3

Brands Overview

4

About Balance Sheet

5

Initiatives in each area of TIP25

6

Full-year Consolidated Business Plan
for FY Ending Feb. 2024

7

Initiatives for TIP25

8

Reference Data

1

Results Overview FY Ending Feb. 2023

4Highlights of Results for FY Ending Feb. 2023
The domestic real store/overseas businesses achieved their sales plans as they continued to be strong
throughout the year.
The confusion of the supply chain due to lockdowns in production sites and the deterioration of exchange rates
had adverse effects on gross profits, but the careful operation of the businesses helped improve profitability
significantly.
Net sales were 110.0% (104.2% if based on the old accounting standards) of the previous term’s level and 100.3% of the planned level though issues
remained to be addressed in pursuing EC growth.
Operating profit was 129.4% of the planned level and exceeded the initial plan by ¥520 million though it did not reach the previous term's level
due to the effects of expenses related to the relocation of the head office, etc.
Old profit
standards

New profit standards
FY Ending Feb. 2023

revised budget
ratio

revised budget
difference

100.3%+0.45 Billon Yen

110.0%

104.2%YoY

YoY

Net Sales

154.45

Operating
Profit2.32

Billion Yen

129.4%+0.52 Billon Yen

52.5%

56.0%

Ordinary
Income3.85

Billion Yen

116.9%+0.55 Billon Yen

66.2%

68.9%

Current Net
Income

3.06

Billion Yen

127.6%+0.66 Billon Yen

299.6%

315.0%

Billion Yen

5

FY02/2023 Full Year Difference from the adjusted forecast

While the golf and street businesses continued to perform well, prompting the company to announce the revision ofoperating profit to ¥1.8 billion, selling and administrative expenses for the second half of the term decreased
substantially due to reductions in advertising and publicity expenses as well as expenses related to the relocation of
the head office. As a result, operating profit was ¥2.32 billion, even exceeding the revised plan by ¥0.52 billion.

Operating profit trends

Unit : Billion yen

0.16

2.32

0.36
0.30

1.80

1.50

・Decrease in sales promotion and advertising expenses
・Unplanned subsidies
・Decrease in taxes and public charges

Total effects of reductions inselling and administrative
expenses: +¥0.52 Billion

Initial plan

Improved performance ofhighly profitable businesses

Revised plan

Reduction in selling andadministrative expenses

Reduction in head officerelocation expenses

Actualoperating profit

6

Whole year ended in Feb. 2023: Comparison with the previous term in operating profit
Operating profit went below that for the previous year due to the effects of special factors, including the transfer ofextraordinary loss from the previous year and the recording of expenses related to the relocation of the head office in thecurrent year, but profitability further improved compared to the previous year because of the appropriate control of sales
yields and inventory levels and reductions in selling and administrative expenses. Operating profit, excluding the effects ofspecial factors, was 114.6% of the previous term’s level (up ¥0.33 billion).

Comparison with the previous term in operating profit (excluding special factors)
Operating profit from the main business¥2.59 billion

Operating profit from the main business¥2.26 billion[Special factor (which
deteriorated profitability)]

114.6% of theprevious term’s level(+¥0.33 billion)
Result¥4.44 billion

・Expenses related to the relocation of
the head office*: -¥0.78 billion

Result¥2.32 billion[Special factors (which
improved profitability)]
・Profitability improved due tosubsidies: +¥0.99 billion
・Transfer to extraordinary loss:+¥1.19 billion[Special factor (which
improved profitability)]
Term ended in
February 2022

Term ended in
February 2023

・Profitability improved due tosubsidies: +¥0.51 billion*Expenses related to the relocation of the head office: ¥590 million for the first half of the term + ¥190 million for the second half of the term =¥780 million for the whole year (differences in the execution of budgets and decreases in expenses from the initial estimate)

7

Net Income Impact Items for FY Ending Feb. 2023
Ordinary profit was ¥3.85 billion, including unplanned exchange gains of ¥0.47 billion associated withoverseas subsidiaries’ assets in dollars as well as non-operating profits of ¥1.52 billion such as dividend income
and real estate income. Net income was ¥3.06 billion, including extraordinary profit/loss such as an
impairment loss of ¥1.75 billion and a profit of ¥880 million on sale of investment securities as well as income
taxes adjustments, and the profit ratio was 2.0%.
・FX income 0.47 billion yen
・Dividend income 0.69 billion yen
・Real estate income 0.35 billion yen
・Equity method investment profit/loss
0.9 billion yen

・Gain on sales of investment securities 0.88 billion yen
・Cooperation money for large facilities, etc. 0.06 billion yen
・Adjustment of corporate tax, etc. 0.27 billion yen *

1.08

2.32
billion yen
Operating profit margin

1.85

-0.32

billion yen

billion yen

billion yen-2.12
billion yen

0.27
billion yen

3.06
・Interest expenses 0.07 billion yen
・Expenses on real estate 0.05 billion yen

・Impairment loss 1.75 billion yen

Non-operating
expenses

Extraordinary
lossbillion yen
Net profit margin
Ratio2.0%

1.5%
OperatingincomeNon-operating
incomeOrdinary Income
3.85 Billion yen

Extraordinary
incomeProfit Before Taxes
2.8 Billion yen

Income taxes
deferred

Net income attributableto owners of parent

Net income
3.06 Billion yen* Due to the increase in future taxable income, it became possible to accumulate deferred tax assets, so the tax burden for the current period decreased.

2

About Business Situation by Channel

9Sales by Channel for FY Ending Feb. 2023

Sales for real stores recovered, registering 116.1% of the previous term’s level, up ¥12.02 billion (108.2% and +¥6.43 billion, respectively, if
based on the old accounting standards). This was the result of sales boosted by the recovery of markets, including the resurge of sales
at major department stores and demand from inbound tourism. In the future, the company aims for further growth mainly
by actively opening new stores in promising businesses.
Comparison to the previous term：141.5% for department stores, 110.4% for non department stores (FB and streetside stores), 116.3% for overseas,

Domestic

and 98.9% for domestic EC (99.6% for total domestic and overseas EC)

国
内
小
売

Old profit
standards
旧収益基準

Old profit standards

New profit standards

New profit standards

Old profit standards

FY Ending Feb.
2021

FY Ending Feb.
2022

FY Ending Feb.
2023

Growth by Channel
YoY (%)FY Ending Feb.
2023

156.7％ 141.5％(Composition Rate： 9.3%)

118.1％ 110.4％(Composition Rate： 45.7%)

Department
百貨店
Stores12.48 Billion Yen

13.82 Billion Yen

19.55 Billion Yen(Composition Rate： 9.3%)(Composition Rate：9.8%)(Composition Rate： 12.7%)

Commercial※１
非百貨店
Facilities(*1)

56.74 Billion Yen

60.73 Billion Yen

67.02 Billion Yen(Composition Rate： 42.3%)(Composition Rate： 43.3%)(Composition Rate： 43.4%)

E-CommerceEC

40.68 Billion Yen

39.28 Billion Yen

38.84 Billion Yen

Domestic
国内その他※２Others(*2)
Overseas(*3)
海外※3(Domestic E-Commerce ratio： 37.0%) (Domestic E-Commerce ratio： 34.5%)

15.50 Billion Yen(Composition Rate： 11.6%)

15.43 Billion Yen(Composition Rate： 11.0%)（ Domestic E-Commerce ratio：
31.0%）

16.11 Billion Yen(Composition Rate： 10.4%)

8.66 Billion Yen

11.10 Billion Yen

12.91 Billion Yen(Composition Rate： 6.5%)(Composition Rate： 7.9%)(Composition Rate： 8.4%)

compared to year
before last (%)

95.5%

98.9%

103.9% 104.4%
149.1%

116.3%

13.59 Billion Yen

66.92 Billion Yen

36.99 Billion Yen（ Domestic E-Commerce ratio：
31.5%）

15.91 Billion Yen(Composition Rate：10.9%)

12.91 Billion Yen(Composition Rate： 8.8%)*1 Fashion buildings, shopping centers, railroad station buildings, individual stores, outlet shops etc. except for department stores.
*2 Apparel businesses such as wholesale, intercompany sales and non-apparel businesses of the group companies.
*3 Results of Efuego Corp. which operates EC sites centering on Tactics.com in the U.S. is to be consolidated from the second quarter of 2021 and onward. The results are recorded in overseas sales.

E-commerce in FY Ending Feb. 2023

10

Due to sluggish performance in the first half of the term, EC sales for the whole year remained at 99.6%(based on the new revenue recognition standards), almost on the same level as in the previous term, but in the second half, they
recovered to 102.0% of the previous term’s level.
•

In the first half of the term, the company’s own EC struggled partly because of the disrupted supply chain, but in the second half, it achieved a V-shaped recovery
thanks to OMO measures centered on social media as well as improved, expanded, and reinforced website content. In the fourth quarter, EC sales continued to bestrong, reporting 107.9% of the level of the same quarter of the previous term.

•

Mainly by curbing excessive price reductions and stepping up sales of exclusive merchandise, Third Party EC significantly improved its profitability, increasing thegross margin ratio by 7.6%*1---a major factor for the achievement of the company’s overall operating profit plan. Going forward, the company will enter a phase inwhich it expands sales while maintaining profitability.
Old profit standards

Unit : Billion Yen

Old profit
standards

New profit standards

FY EndingFeb. 2021

FY EndingFeb. 2022

FY EndingFeb. 2023

In-House E-Commerce

17.87

17.84

18.11

101.3%

101.5%

18.08(ratio(%))(43.9%)(45.4%)(46.6%)(＋2.7pt)(+1.2pt)(48.9%)

Compared to year
before last (%)

Y/Y(%)FY EndingFeb. 2023

Quarterly quarterly YoY change in
In-house E-commerce sales
5,000

107.9%

Unit : million yen

104.0%
4,800

101.5%

105.0

4,600

Domestic E-Commerce(ratio(%))*2

40.68(37.0%)

39.28(34.5%)

38.84(31.1%)

95.5%(-5.9pt)

98.9%(-3.4pt)

36.99

100.0

92.7%

4,400

3.23

3.69

3.97

122.8%

107.6%(31.5%)

3.97(37.4%)(33.3%)(30.8%)(-6.6pt)(-2.5pt)

90.0%

4,513

4,510
4,221

4,000

(ratio(%))*3

95.0%

4,867
4,200

Overseas E-Commerce

110.0

85.0%

(30.8%)
3,800

E-Commerce TOTAL

43.91

42.98

42.81

97.5%

99.6%

40.96

(ratio(%))*2(37.0%)(34.4%)(31.0%)(-6.0pt)(-3.4pt)(31.4%)

80.0%

Q1
2023.2期
FY 2023
第1四半期

Q22023.2期
FY 2023
第2四半期
EC
sales
売上高

Q3
2023.2期
FY 2023
第3四半期

Q42023.2期
FY 2023
第4四半期

YoY change
前年比*1 This ratio covers only sales for TSI Inc. and Third Party EC sales for and wander (excluding the Ueno-Shokai Business Department whose system is not partially unlinked)*2 Domestic E-Commerce ratio excluding domestic and other sales (wholesale,companysales,etc.)*Results of Efuego Corp. which operates EC sites centering on Tactics.Com in the U.S. is to be consolidated from the second quarter of 2021 and onward. The results are recorded in overseas sales.

11

Sale Trends by Channel for FY Ending Feb. 2023

New cross-channel approaches brought synergy effects, causing a favorable cycle ofmarketing. Real stores recovered significantly while EC sales continued to be strong.
Real store businessEC business

Real stores: 116.1% of the previous term’s level

Domestic EC: 98.9% of the previous term’s level(including department stores: 141.5%)In-house EC: 101.5% of the previous term’s level

Sales expanded mainly in women's brands for department stores. Pop-up

In the first half of the term, sales did not increase as expected since priority wasstores in new areas and live commerce led more customers to visit stores,

given to improving profitability, but in the second half, sales continued to be strong

contributing to gaining new TSI fans.

due to live commerce and expanded workforce and website content about products.

The overall profitability of the store business improved as the company shut

The company aims for sales and profitability growth by further bolstering content

down non-performing outlets and replaced sluggish brands with thoseand optimizing internal operations.

supported by customers.

画像▲ The professional golfer Momoko
Ueda had one-day customer service
experience, appointed as one-day
store manager in this event.

▲ A shoe-shining event was held byinviting a professional leather shoeshiner.

▲Live commerce tolaunch new products▲ Product promotion
using social media▲Implementation of crossbrand promotion

3

Brands Overview

13

Individual Overview of Major Brands in FY Ending Feb. 2023
Six of the top ten brands made rapid progress in sales, registering a two-digit growth rate, and the strong
performance and recovery of major brands drove the overall sales of the company. In addition, sales rose
mainly in the women's apparel and street businesses, the company’s key business units, and this helped
boost the overall sales of the company, and at the same time, this enabled the company to gain a foothold
toward achieving further growth in the years to come.
■ Top 10 brands in sales
1.

Cumulative sales and growth rates for the top
ten brands“HUF”
146.3% of the previous term’s level

PEARLY GATESUnit : million yen

2.

NANO universe

3.

MARGARET HOWELL

4.

NATURAL BEAUTY BASIC

5.

HUF

6.

AVIREX

7.

UNDEFEATED

8.

STUSSY9.

new balance golf10.

human woman: 140% of the previous term’slevel in sales or more

Average growthrate for the top
ten brands

In addition to the strong performance ofthe brand, sales growth was
accelerated as the number of domestic
stores increased.
The 20th anniversary of the launch of
the brand ended as its domestic andoverseas events were well received.

Average growthrate for the top
ten brands+15.6%+12.3%

90,65282,656

76,794: 110% of the previous term’slevel in sales or more

FY
Ending Feb.
2021年2月期
2021

FY
Ending Feb.
2022年2月期
2022

FY
Ending Feb.
2023年2月期
2023“human woman”
142.7% of the previous term’s level
The OMO measures implemented
continuously brought satisfactory
results with EC sales growth far
exceeding the company’s overallsales growth.
In addition, the recovery ofdepartment stores boosted real
store sales.

4

About Balance Sheet15

About Balance Sheet
Unit:Million Yen
FY Ending Feb. 2022

Results

Cumulative Q3RD
2023 Ending Feb.

Composition
Results
Rate (%)

FY Ending Feb. 2023

Composition
Rate (%)

Results

Composition
Rate (%)

Y/Y
ChangeY/Y (%)

Q4/Q3
ChangeQ4/Q3 (%)> Inventory assets【Comparison with the previous term】
While net sales were 110.0% of the previous
term’s level, inventory assets increased by ¥5.9
billion, at 131.8% of the previous term’s level.
In order to meet the recovery of store sales anddemand from inbound tourism, the company
increased inventory to ensure profit.

75,54753.8%

80,80555.4%

71,83753.0%-3,71095.1%-8,96888.9%(of Cash and Deposits)

39,25828.0%

32,13922.0%

32,205

23.8%-7,05382.0%

66100.2%(of which, Inventory)

18,725

13.3%

28,28019.4%

24,679

18.2%

5,954

131.8%-3,601

87.3%

64,89346.2%

65,155

44.6%

63,58947.0%-1,30498.0%-1,566

97.6%> Treasury stock(of Investment Securities)

28,39720.2%

28,122

19.3%

27,879

20.6%

-518

98.2%

-243

99.1%

(of Investment Real estate)

4,735

3.4%

4,713

3.2%

4,708

3.5%

-27

99.4%

-5

99.9%

【Comparison with the previous term】
As part of its efforts to implement capital policy
and measures to return earnings to shareholders,the company acquired ¥2.32 billion’s worth oftreasury stock in the whole year and took
measures such as writing off ¥2.95 billion’s worthof treasure stock at the end of the term. Thismeans that the treasury stock decreased by¥0.63 billion’s compared to the term ended in
February 2022.

Current Assets

Non-current Assets

140,440

100.0% 145,961

100.0% 135,427

100.0%-5,014

96.4% -10,534

92.8%

28,37520.2%

32,05922.0%

26,23919.4%-2,136

92.5%-5,820

81.8%

114

0.1%

17

0.0%

17

0.0%

-97

14.9%

-

100.0%

6,212

4.4%

4,987

3.4%

4,737

3.5%

-1,475

76.3%

-250

95.0%

14,32910.2%

12,177

8.3%

10,3097.6%-4,02071.9%-1,868

84.7%

9,803

7.0%

6,478

4.4%

5,010

3.7%

-4,79351.1%-1,468

77.3%

Total Liabilities

42,70430.4%44,23630.3%

36,54927.0%-6,15685.6%-7,688

82.6%

Total Net Assets

97,736

69.6% 101,724

69.7%

98,878

73.0%

1,142

101.2%-2,846

97.2%-3,668

-2.6%

-3.7%

-3,031

-2.2%

637

82.6%

2,357

56.3%

> Equity ratio

140,440

100.0% 145,961

100.0% 135,427

100.0%-5,013

96.4% -10,534

92.8%

The capital adequacy ratio was maintained high,at 72.7%.

Total Assets
Current Liabilities(of Short-term borrowings)(of Current portion of long-term borrowings)

Non-current Liabilities(of Long-term borrowings)(of Treasury stock(-))
Total Liabilities and Net Assets-5,3885Initiatives in each area of TIP25

17

TSI Holdings Group’s medium-term management plan “TIP25”
Announced on April 14, 2022 Medium-term management plan materials reposted

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 I P 2 5 ) .

TIP25 formulation policy

1

2

3

Capture changes in the social

Align the direction of the entire

Achieve sufficiency in digital

environment and market tocompany with the direction ofengagement, ESGs and highexpress and embody ourbusiness domains to develop

profit, all areas that the stock

existence and purpose

business in new growth domains

market holds dear

18

TIP25 4Div.(domains)
Announced on April 14, 2022 Medium-term management plan materials reposted

Wellness & LifestyleWellness & lifestyle

1

Street & Culture

Street & culture

2

AthleisureCreate fashion entertainment that has a

StreetNurture street culture and create fashion

Outdoorpositive impact on the health andCultureentertainment that brings positivity to

L i fe s t y l ehappiness of consumers and, bySelectsociety and the environment.

extension, society.

Fashion Capital3

Fashion capital

L a d y ’s
Fa s h i o n

Refine the experience values of brands
and create fashion entertainment
centered on highly refined tastes.

Digital Generation

Digital generation
Gen-Z
Fa s h i o n
D2C/F2C
DigitalFa s h i o nCreate fashion entertainment for thedigital native generation via digital x
fashion.

4

19

TIP25 4Div.(domains)

1

Wellness & LifestyleWellness & Lifestyle Div.
1.
2.
3.
4.
5.
6.
7.
8.
9.

PEARLY GATESMASTER BUNNY EDITIONJack Bunny!!
new balance golf
PING
NBB WEEKEND
St ANDREWSMARGARET HOWELL
MHL.

Street & Culture Div.
10. and wander
11. Laline
12. Urth Caffé
13. THE LIBRARY
14. SEVEN BY SEVEN
15. YLÈVE
16. quitan
17. Dice&Dice

Fashion Capital Div.

4.
5.
6.
7.

NATURAL BEAUTY BASICN.
PROPORTION BODY
DRESSING
Apuweiser-riche
Arpege story
CADUNÉ
Mystrada

1.
2.
3.
4.
5.
6.
7.
8.
9.

3

Fashion Capital

1.
2.
3.

2

Street & CultureSTÜSSYHUF
UNDEFEATEDTACTICSAVIREX
SchottNANO universeB’2nd (GARDEN,吾亦紅)ROYAL FLASH

Digital Generation
Digital Generation Div.

8.
9.
10.
11.
12.
13.

JUSGLITTY
Rirandture
ADORE
human woman
LE PHILPINKY&DIANNE

1.
2.
3.
4.
5.
6.
7.
8.

ETRÉ TOKYOMECRE
CHAROL
FREE’S MARTROSE BUDJILL STUARTJILL by JILL STUART
hueLe Museum

10.
11.
12.
13.
14.
15.
16.
17.

LHP
MANASTASH
Dorothy Lang
BEAVER
UNION
BAIT
FIGURE
Forget-me-nots

4

20

Wellness & LifestyleCreating attractive communities
Sublimating apparel brands into community brands.

Airing of new TV commercials “Go, TSI”

Developing entertainment business closely linked to lifestyles.
¥47,502 million

Net sales¥47.50BillionYoY change

116.5％

31.2%
Ratio tototal sales

New TV commercials aired featuring the golfers Momoko Ueda andErika Hara, both contract ambassadors for the key brand “PEARLYGATES.”■ Broadcast from February 15 to 28, 2023 in six
areas nationwide
After the airing,■ The recognition level for TSI rose by 6.7
percentage points.
■ The popularity of PEARLY GATES went up by 7.0
percentage points.

“and wander” Offering new purchase experience“PEARLY GATES” Providing uniforms to thewheelchair basketball team“and wander” is a brand for outdoor gear.
Holding camping activities is not easy because suchactivities require various kinds of outdoor gear. The
brand therefore started rental services for some of its
products so that beginners could enjoy outdoor life
easily. It offers new user experience by allowing
customers to purchase products after they actuallyexperience their value through these services andbecome satisfied with them.

“PEARLY GATES” entered into a uniform
logo sponsorship agreement with thewheelchair basketball team NO EXCUSE.
By combining the technology that has
cultivated in golf wear merchandising andits know-how in universal design, thebrand developed uniforms that fit eachmember so that they can take part in the
sport comfortably.

155.8% of the previous
term’s level in sales

21

Street & Culture

Platform for play rooted in the street spirit“Schott” The historic brand which celebrates
110th anniversary of its launch, is attracting
public attention again

By extending to the keyword “play,” the platform aims at
spreading itself to neighboring lifestyles, reinventing gears,

and offering new experiences.

Net sales¥58.62 Billion¥58,629
millionYoY change

104.5％“BAIT” The only culture store that originatedfrom America“BAIT” is a culture store that mixes fashion items,sneakers, animations, and comics.
With no atmosphere that reminds visitors of geeks,
it is advancing rapidly, registering 159.0% of theprevious term’s level, as sales of highly
fashionable products that everyone can wear
readily are strong. In particular, the Shibuya Parcooutlet is highly compatible with art and culture,
attracting many youths and foreigners.

38.4%

Ratio tototal sales

The preference of consumers has shifted
under the COVID-19 pandemic to genuine,
high-quality products that can be usedover a long period of time. “Schott” isattracting public attention as the brandmatches such consumer needs.

135.7% of theprevious term’s level

The brand has successfully approached awide range of age groups from those whohave recognized it as a long-establishedleather jacket brand since early on to
youths that have not worn leather jackets
in the past. “Schott” is also focusing on not
only traditional American-made models but
also models planned in Japan which adopt
trendy sizes and designs, and the latter
serves as entry models that have thesame level of quality as American ones
but are less expensive.
Sales are stronger than in the previous
year, and the company expects further▲ “ONE STAR,” a synonym
growth of the brand.
for Schott22

Fashion CapitalServices that respond constantly to market trends and changes
Being flexible enough to continue changing gracefully, granting“LE PHIL” has posted substantial revenue growth forthree consecutive terms since its creation

the wishes of customers, and extending a circle of happiness.
¥34,036
millionNet sales¥34.03 Billion

YoY change

22.3%
Ratio tototal sales

115.1％“ADORE” supports art through fashion

145.5% of the previous

ADORE, which offers “360 degrees beautiful”
items, collaborates with the ballet dancer
Mizuka Ueno, an artist who expresses beauty.
The aim is to create new value through synergy
effects brought by combining the two which takedifferent approaches to beauty.
Part of sales is donated to art support
organizations to contribute to development of
art.

term’s level in sales

LE PHIL made its debut in thespring/summer season of 2019.
It had expanded sales mainly throughEC, but with the relaxation ofcountermeasures against COVID-19, it
actively set up pop-up stores in its real
stores, raising its recognition level andacquiring new fans across the country.
In March 2023, it opened a permanent
outlet, the third of its kind, at the
Nagoya Takashimaya department store,
and in Hokkaido, it set up a pop-up
store, the first of its kind in the region.
The company intends to further step up
aggressive sales activities as it plans toopen more new permanent outlets inautumn.

▲ Spring collection of 2023

Changes in sales forthe whole year

192.4% of theprevious term’s level

CAGR for the period from the
February 2020 term to the
February 2023 term

903,655(In 1,000 yen)+106.5%
469,717
286,841
145,861

Feb 2020

20.2期
term

Feb 2021

21.2期
term

Feb 2022

22.2期
term

Feb 2023

23.2期
term

23

Digital Generation

Continuously expanding content to win over the next generation of customers
Obtaining a favorable response and generating strong excitement
through tangible and intangible content that expands infinitely.

“hueLe Museum” initiatives for OMO promotion¥12,579
millionNet sales¥12.57 Billion

YoY change

106.0％

8.2%
Ratio tototal sales“CHAROL” opened a store for a limited period of time
HINANO, a popular influencer, serves ascreative director for “CHAROL”. Since its
debut in the autumn/winter season of 2022,
the brand has developed mainly throughonline shopping, but recently it opened ashop that operates for a limited time only at
the LUMINE Shinjuku commercial facilities.
“CHAROL” aims at raising its recognitionlevel and acquiring new customers.

▲ The store is scheduled tooperate until the end of July.

The brand gives priority to stepping up
live video distribution by actively using
influencers and personal stylists. This
leads to video distribution of higher
quality and acquisition of new
customers.
“STUMBLY”, one of the brands handled
by “hueLe Museum”, has introduced avirtual fitting service on a trial basis as
one of its OMO measures.
This enables the brand to offer apurchase experience comparable to one
customers have at real stores because
detailed textures of materials and sizes
that fit set types of physique can bedisplayed.

▲ 3D data and actual items

6

Full-year Consolidated Business Plan
for FY Ending Feb. 2023

25

Profit and Loss Plan for FY Ending Feb. 2023
Sales are projected to be ¥162 billion / 104.9% of the previous term.
Selling and administrative expenses are expected to grow as net sales expand, but due to factors such as the effects of therelocation of the head office, the company plans a decrease of 0.4% in the percentage of such expenses to the total.
Operating profit is expected to be ¥4.7 billion, 201.8% of the previous term’s level, and net income is projected tobe ¥3.5 billion.
FY Ending Feb. 2022*

FY Ending Feb. 2023

Net Sales 140.38 Billion Yen

154.45 Billion Yen(YoY：104.7%)

SG&A
Expenses

72.38 Billion Yen

Operating
IncomeCurrent Net
Income(Composition Rate：51.6%)

Plan for FY Ending Feb.
2024

Increase or Decrease

Rate of
Change(%)(YoY ：110.0%)+7.55
162.00 Billion Yen Billion
Yen

+4.9％

82.57 Billion Yen

86.10 Billion Yen+4.3％(YoY：104.9%)+3.53(Composition Rate：53.5%) (Composition Rate：53.1%)

Billion Yen+2.38

4.44 Billion Yen

2.32 Billion Yen

4.70 Billion Yen(Profit margin：3.2%)(Profit margin：1.5%)(Profit margin：2.9%)

Billion Yen

1.02 Billion Yen

3.06 Billion Yen

3.50 Billion Yen+0.44(Profit margin：0.7%)(Profit margin：2.0%)(Profit margin：2.2%)* For the fiscal year ending February 2022, the Old profit standards will be applied.

Billion Yen(Composition Rate：-0.4pt)+101.8%+14.3%

26

FY02/2024 Full Year Profit and Loss Plan Operating Income VarianceIn the plan for the term ending in February 2024, based on the ¥2.32 billion posted in the term
ended in February 2023, we aim to earn ¥4.7 billion in operating profit. Factors taken into accountinclude decreases in employment adjustment subsidies received in the previous term; decreases in
expenses such as head office relocation costs and office rents; increases in sales due to businessgrowth; and higher gross profit margins due to review of production and sales plans.
Growth range for the current term
Profitability will further go up due to the results of various initiatives implemented.
Unit : billion yen

0.73

Profitability improves due to the efforts madein the previous term

0.60

4.70

0.20

0.58

0.78

2.32
-0.51
Operatingprofit for theprevious term

Employment
adjustment
subsidies for theprevious term

Head officerelocation
expenses for theprevious term

Decrease in
office rents

Cost
optimization

Proper inventory

Business growth Operating profit
Improved businessfor the term
efficiency
ending in
Expansion of EC
February 2024

27

Return to shareholders
The amount of dividend for the term ended in February 2023 was revised from ¥7 per shareas※2
previously forecast to ¥10 per share. The dividend forecast for the current term taking into
consideration all factors such as projected financial results and business environment in the year to come is¥15 (+¥5) per share as already announced.

1

Dividends
配当金15

Dividend payout ratio
配当性向(Consolidated)

10

15
0.8

44%

10

28%

0.6

35%

5

5

0.2

0

0

0

Dividend
Payout ratio

0.4

FY Ending Feb.
2021年2月期

FY Ending Feb.
2022年2月期

FY Ending Feb.
2023年2月期

2021

2022

2023

Plan for2024年2月期
FY Ending Feb.
2024
Forecast
予想

¥0
-

¥5
44%

¥10
28%

¥15
35%

7

Initiatives for TIP25

29

Regeneration

A company creating fashion entertainment– We link value to society (value provided) to corporate growth,– While using entertainment that fashion brings,– To create a form of original value provided that is not limited to product provision.

# SocialValue# Entertainment# Empathy

Social Goodness

Entertainment

Empathy

For the good of society and the environment

Fun & enthusiasm

Empathy & emotional involvement

–
–
–
–

Environmental conservation
Addressing social issues
Creating culture
Building communities

–
–
–
–

Digital entertainment
Real experiences
Community events
Retail entertainment

–
–
–
–

Empathy for purpose
Empathy for contents
Empathy for products
Empathy for services

30

Designing greater customer experience than expected
PoC for the joint metaverse project with Alibaba and JP GAMESTake part in the metaverse area to provide new brand experience.
Utilize 3D data accumulated through product development to create new entertainment.

– Putting 3D data produced in the process of productdevelopment in the metaverse to examine how theywork: TSI has succeeded in dynamically reproducing
expressions such as transparency, double-layer looks,
and swinging in the metaverse space at a levelcomparable to that of 3D data specialized for the apparelindustry.

– Creating content by combining fashion and themetaverse: TSI is considering taking measures such as
the hosting of exhibitions, shows, and virtual stores anddeveloping metaverse platforms using entertainment
content clearly different from the one offered in the past.

31

Bolstering entertainment content
New ways of providing value
Outgrow our traditional domain of creation specialized in apparel products (= goods) and offer entertainment content that creates“play,” “ experience,” and “sympathy.”
Develop products, services, and communication methods that exceed the expectations of fans.

I want to lookat lavender!
I want piping to bein dark purple!

– Initiatives for culture development:
Take part in X Games which has made its
debut in Japan and support the sport meeting.

– Virtual runway:
AR Runway appears if a smartphone is held
against the store poster. Coordination can be
confirmed from various angles and distances.

– Live simulations participated in bycustomers:
3D simulated designs are distributed live.
Products are developed while reflecting theopinions of customers in real time.

32

Communicating attractive designs by combining brands and free spaces
Designing essential lifestyle experience exceeding non-material value
With the relocation of the head office, TSI has set up an entertainment area that can be utilized for events and other purposes.
This entertainment area provides places for new experience, such as joint exhibitions held through collaboration between brands,
which have hitherto not worked together, and new types of exhibitions that adopt live experience and XR and other sorts of digitalcontent.

The photo shows the live painting session held by Ms. Kanako Sasaki during the hueLe
Museum exhibition. Considering clothes and bags as canvas, she painted extempore.

33

Toward spiral and agile work styles
Putting creative work styles into practice
TSI is promoting environmental design and awareness raising to encourage the work style “ONE TABLE,” which eliminates barriers
between departments.
The ONE JILL Project does rebranding using a cross-functional one-team system.

– Environmental design tobring business synergies:
In relocating its offices, TSI
has designed free addressplans to enableinterorganizational
cooperation to beestablished, and businesssynergies to be brought,
spontaneously.

– Organizing teams to gain afavorable response from
customers and excite them:Uncoordinated, sectionalist
organizations are restructured
into cross-sectional teams that
pursue shared purposes andwork on a project-by-projectbasis.

34

Developing materials to reduce environmental impacts
A project for developing TSI original organic cotton
We executed an outsourcing agreement with SynCom Agritech, an agricultural venturec o m p a n y, u n d e r t h e t h e m e o f t h e “ s t u d y o n d e v e l o p m e n t o f T S I ’ s o r g a n i c c o t t o n a n d r e f o r m s
o f r a w c o t t o n p r o d u c t i v i t y.
Working with local farmers in the state of Tamil Nadu in India, a developing country, to cultivate TSI’s own cotton on a trial basis– The harvest of cotton that had been grownsince last year was completed in February.
– Trial ginning and spinning were done, and theyarn prototype produced using theharvested cotton is scheduled to arrive inJapan by the end of April.
– Studies of the yarn such as quality inspection,
confirmation of yarn count and improvement
points, and analysis of suitable clothing will
also be conducted.

Future plans:

1
2
3

4

– Analysis of the harvested cotton and cotton
yarn– Production of samples using prototypes– Reselection of cotton varieties and sowing– Planning for expansion of the TSI experimental
farm in scale– Launch of processes to acquire organic cotton
certification– Continuing to advance joint research with Tamil
Nadu Agricultural University on variety
development and cultivation protocol

35

Creating a sustainable future through fashion entertainment
Nine initiatives for sustainability that suits TSI’s materiality
TSI is promoting various initiatives to solve its materiality.

Establishment of the Sustainability Committee
Under the supervision of the Board of Directors, theSustainability Committee has been set up as an advisoryorgan for the Representative Director & President.

1 Climate change

3 Waste2 Raw materials

4 Water resources

Supporting the opinions offered by TCFD and disclosing information
Material innovation
GlobalEnvironment

Definition of three areas of innovation
1.
2.
3.

• Formation of business and capital alliances with Food Reborn• Joint initiatives with SynCom Agritech

Material innovation
SCM platform innovation
Engagement innovation

Construction of circular systems• Pushing joint initiatives with Seni-Ikueikai

5 Diversity
6 Health & safety

7 Employee wellbeing
8 Fair labor conditions

Formulation of group human rights policy

Society
People9 Local community

Comprehensive cooperation agreementwith Hokkaido’s Kamikawa Town
• Remake project initiative• Giving donations (tax payment) using the regional
revitalization support tax system (corporate versionof the hometown tax donation system)

Nurture worldwide empathy and social value through the power of fashionentertainment.

A company creating fashion entertainment8Reference Data

38

Highlights of Full-year Results for FY Ending Feb. 2023

Consolidated Financial
Highlights -Profit and Loss(December to February)

Unit:Million Yen*1*2

Q4TH 2022 Ending Feb.
Results

Composition
Rate (%)

Q4TH 2023 Ending Feb.
Composition
Rate (%)

Results

Y/Y
ChangeY/Y (%)Net Sales

36,467100.0

39,050

100.0

2,582

107.1

Gross Profit

18,835

51.7

19,535

50.0

699

103.7

SG&A Expenses

19,575

53.7

20,932

53.6

1,356

106.9

18,14049.7

20,136

51.6

1,995

111.0

200

0.6

77

0.2

-123

38.8

1,234

3.4

718

1.8

-516

58.2

Operating Income

-740

-2.0

-1,397

-3.6

-656

188.7

Ordinary Income

-405

-1.1

-1,202

-3.1

-796

296.4

Extraordinary Income

979

2.7

92

0.2

-886

9.4

Extraordinary Loss

4,129

11.3

1,438

3.7

-2,69034.8

Profit Before Taxes-3,555-9.8-2,548

-6.5

1,007

71.7

Profit Attributable to Owners of Parent-4,443-12.2-1,558

-4.0

2,884

35.1

694

1.9

-600

-1.5

-1,295-86.5

SG&A Expenses(excl. Goodwill Amortization, Depreciation andGoodwill Amortization
Depreciation and Amortization

EBITDA ※*3*1The old revenue recognition standards were applied to the term ended February 2022.
*2The new revenue recognition standards are applied to the term ending February 2023.
*3 EBITDA＝Operating Income + Goodwill Amortization + Depreciation and Amortization

39

Highlights of Full-year Results for FY Ending Feb. 2023
Unit:Million Yen

Financial
Highlights -Profit and Loss-FY Ending Feb. *1

FY Ending Feb. *2

2022

2023

Results

Composition
Rate (%)

Results

Composition
Rate (%)

Y/Y
ChangeY/Y (%)Net Sales

140,382

100.0

154,456

100.0

14,074110.0

Gross Profit

76,826

54.7

84,901

55.0

8,075

110.5

SG&A Expenses

72,38651.6

82,572

53.5

10,185114.1

68,00648.4

78,74451.0

10,738

115.8

788

0.6

423

0.3

-364

53.8

3,591

2.6

3,403

2.2

-188

94.8

Operating Income

4,440

3.2

2,329

1.5

-2,11052.5

Ordinary Income

5,834

4.2

3,859

2.5

-1,974

66.2

Extraordinary Income

2,543

1.8

1,065

0.7

-1,47741.9

Extraordinary Loss

5,664

4.0

2,120

1.4

-3,543

37.4

Profit Before Taxes

2,712

1.9

2,804

1.8

91

103.4

Profit Attributable to Owners of Parent

1,022

0.7

3,063

2.0

2,040

299.6

EBITDA ※*3

8,820

6.3

6,156

4.0

-2,663

69.8

SG&A Expenses(excl. Goodwill Amortization, Depreciation andGoodwill Amortization
Depreciation and Amortization*1The old revenue recognition standards were applied to the term ended February 2022.
*2The new revenue recognition standards are applied to the term ending February 2023.
*3 EBITDA＝Operating Income + Goodwill Amortization + Depreciation and Amortization

40

Highlights of Full-year Results for FY Ending Feb. 2023
Unit:Million Yen

Net Sales
Per Channel

FY Ending Feb. *4

FY Ending Feb. *3
2022

2023

Results(Million yen)

Composition
Rate (%)

Results(Million yen)

Composition
Rate (%)

Department Stores

13,8209.8

19,555

12.7

141.5

+2.8ptCommercial Facilities(*1)

60,73643.3

67,022

43.4

110.4

+0.1ptIn-house EC

17,842

12.7

18,111

11.7

101.5

-1.0pt

3rd Party

21,443

15.3

20,73213.4

96.7-1.9ptEC(E-Commerce)

39,28628.0

38,84325.1

98.9-2.8ptOthers(*2)

15,43411.0

16,115

10.4

104.4

-0.6ptDomestic

129,27792.1

141,537

91.6

109.5

-0.5ptEC(E-Commerce)

3,694

2.6

3,975

2.6

107.6

-0.1ptOverseas(*3)

11,104

7.9

12,9188.4

116.3+0.5ptEC(E-Commerce)

42,98030.6

42,81927.7

99.6-2.9ptTOTAL

140,382

100.0

154,456

100.0

110.0

-

Y/Y (%)*1 Fashion buildings, shopping centers, railroad station buildings, individual stores, outlet shops etc. except for department stores.
*2 Apparel businesses such as wholesale, intercompany sales and non-apparel businesses of the group companies.
*3 The old revenue recognition standards were applied to the term ended February 2022.
*4 The new revenue recognition standards are applied to the term ending February 2023.

Composition Rate
Y/Y Change(pt)41Highlights of Full-year Results for FY Ending Feb. 2023
Unit:Million Yen
FY Ending Feb. 2022

Brands Overview
Sales

*2

*1

YoY

FY Ending Feb. 2023

Composition
Rate (%)

Gross Profit
Ratio (%)

Sales

Composition
Rate (%)

Gross Profit
Ratio (%)

Sales (%)

Gross Profit
Ratio (pt)1.

PEARLY GATES

15,06910.7

61.9

17,086

11.1

60.8

113.4

-1.1pt2.

NANO universe

17,861

12.7

49.5

14,764

9.6

51.2

82.7

+1.7pt3.

MARGARET HOWELL

11,002

7.8

66.1

12,801

8.3

64.5

116.3

-1.7pt4.

NATURAL BEAUTY BASIC

10,356

7.4

58.0

10,994

7.1

63.1

106.2

+5.1pt

5.

HUF

6,733

4.8

51.1

9,853

6.4

51.3

146.3

+0.2pt6.

AVIREX

6,240

4.4

62.1

7,084

4.6

54.5

113.5

-7.6pt7.

UNDEFEATED

4,389

3.1

41.1

4,640

3.0

35.3

105.7

-5.8pt8.

STUSSY

4,286

3.1

69.8

4,617

3.0

64.5

107.7

-5.3pt9.

human woman

3,083

2.2

58.1

4,409

2.9

64.1

143.0

+6.0pt10.

new balance golf

3,632

2.6

57.8

4,400

2.8

51.3

121.2

-6.5pt

TOP10 計82,656

58.9

57.5

90,652

58.7

57.3

109.7

-0.2ptOther Brands

55,834

39.8

51.3

63,101

40.9

51.7

113.0

+0.4ptContinuing Brands

138,491

98.7

55.0

153,753

99.5

55.0

111.0

-0.0pt

1,891

1.3

34.0

702

0.5

50.3

37.2

+16.3pt

140,382

100.0

54.7

154,456

100.0

55.0

110.0

+0.2ptClosed Brands
TOTAL*1The old revenue recognition standards were applied to the term ended February 2022.
*2The new revenue recognition standards are applied to the term ending February 2023.

42

Highlights of Full-year Results for FY Ending Feb. 2023

Domestic Monthly Sales Information
FY 2022 Ending Feb.
All Stores：103.1％
Existing Stores：99.5％

FY 2023 Ending Feb.
All Stores：102.1％
Existing Stores：103.5％

43Highlights of Full-year Results for FY Ending Feb. 2023

The Number of Stores
FY Ending
Feb.
2022

Apparel

Store
Open

Store
Close

FY Ending Feb.
2023

Y/Y
ChangeDomestic

805

+38

-105

738

-67

Overseas

41

-

-12

29

-12

Total

846

+38

-117

767

-79

Restaurant

Domestic

7

+1

-

8

+1

Cosmetics

Domestic

36

+4

-4

36

-

889

+43

-121

811

-78

Total

・Descriptions about future within this document are based on the information that the company obtains on the date of this report andcertain assumptions deemed to be reasonable. Actual earnings may differ materially from various future factors.
・This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.