Summary of Consolidated Financial Results
for the First Quarter of Fiscal Year Ended February 29, 2024
[Japanese GAAP] (Consolidated)
July 12, 2023
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
Executive Officer, General Manager of Finance & Accounting Dept. Mitsuru Naito
TEL: +81-3-5785-6400

Contact:

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

July 14, 2023―

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 first quarter of the Fiscal Year Ended February 29, 2024(March 1, 2023 to May 31, 2023)(1) Consolidated results of operations(% change from the previous fiscal year)

Net salesFirst quarter of FY ended
February 29,2024
First quarter of FY ended
February 28,2023

Operating income

Million yen%

39,372

3.3

38,122

11.4

Million yen

Profit attributable toowners of parent

Ordinary income%

Million yen%

Million yen

1,836

14.5

2,425

9.6

1,988

(3.6)

1,603

(29.5)

2,212(14.2)

2,063(15.1)(Notes) Comprehensive income: First quarter of Fiscal year ended February 29, 2024 ¥1,797 million(31.0%)
First quarter of Fiscal year ended February 28, 2023 ¥2,605 million(9.8%)
Net income
per shareFirst quarter of FY ended
February 29,2024
First quarter of FY ended
February 28,2023

Diluted net
income per share
Yen

Yen

23.78

―

23.04

―

(2) Consolidated financial position

Million yen

Million yen

Shareholders’ equity
ratio%

136,027

99,08072.6

135,427

98,878

72.7

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

Net assets(Reference) Shareholders’ equity: First quarter of FY ended February 29,2024 ¥98,704 million
FY ended February 2023
¥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
Second quarter(Cumulative)
Full fiscal year

Operating income%

Million yen%

Ordinary income
Million yen%

Profit attributable toowners of parent
Million yen

Net income
per share%Yen

75,000

4.0

1,000

69.8

1,400

(26.0)

1,000(55.6)

11.87

162,000

4.9

4,700

101.8

5,500

42.5

3,500

14.3

41.54

(Note) Revisions during this quarter of previously disclosed consolidated business results projection for FY 2024: None

＊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: None
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
Q1 of FY ended February
at the end of period(treasury stock included) 2024
b. Number of treasury
Q1 of FY ended February
stock at the end of period 2024
c. Average number of
Q1 of FY ended February
shares over the period2024

90,144,093 shares

FY ended February 2023

90,144,093 shares

7,029,893 shares

FY ended February 2023

5,878,463 shares

83,637,833 shares

Q1 of FY ended February
2023

89,574,530 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 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(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
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 the Q1 of the consolidated cumulative period (March 1, 2023 – May 31, 2023), there was a recovery inconsumer spending in the apparel industry as the impacts of the COVID-19 pandemic subsided. However, the situation
remained challenging due to a combination of factors, including a change in consumer sentiment toward apparelproducts due to the pandemic, soaring resource prices due to the Russia and Ukraine situation, and rapid exchange
rate fluctuations.
In such a business environment, in order to transform the Group to "shed the ‘apparel only’ image" and become a"company creating fashion entertainment " according to the new medium-term management plan called the "TSI
Innovation Program 2025 (TIP25)" announced in April 2022, it continues to drive forward fundamental reforms to its
profit and corporate structures in response to changes in the social environment and customer lifestyles associatedwith the development of digital transformation (DX) with the aim of creating its own original value offerings.
Specifically, we focus on investing in growth business areas, primarily in e-commerce (EC) expansion, and aim toreform the profit structure by shifting the phase from withdrawing unprofitable stores to opening large stores andreopening stores in prime locations and developing attractive stores.
Meanwhile, the Group is 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 its products through areview of the materials and manufacturing processes.
The Group has been working to secure the over-the-counter sales of its group companies and strengthen sales
through EC, as well as to curb excess inventory and the cost of goods sold by strictly monitoring product purchases
and reducing them to appropriate levels.
Consequently, the net sales stood at 39,372 million yen (up 3.3% year on year), the operating income was 1,836
million yen (up 14.5% year on year), and the ordinary income reached 2,425 million yen (up 9.6% year on year).
Furthermore, the quarterly profit attributable to owners of the Group’s parent was 1,988 million yen (down 3.6% 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 existing businesses, we strove to improve our profitability by rolling out products that leverage the features ofeach brand, including the street brand “STUSSY”, London collection brand “MARGARET HOWELL”, military fashion
focused “AVIREX”, and outdoor fashion focused “and wander”.
Consequently, the net sales in apparel-related businesses increased by 3.4% compared with the previous fiscal year
to 38,047 million yen.

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 1,533 million yen (up 2.3% 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 1Q FY ended
February 2024
(As of May 31, 2023)

Increase/decrease

Total assets

135,427

136,027

599

Liabilities

36,54936,946397

Net assets

98,87899,080202

72.7%¥1,168.69

72.6%¥1,187.58(0.1%)¥18.89

Shareholders’ equity ratio
Net assets per share

Assets increased by ¥599 million, mainly due to increases in accounts receivable–trade (up ¥2,077 million from theend of the previous fiscal year) and inventories (up ¥2,591 million from the end of the previous fiscal year), despite adecrease in cash and deposits (down ¥3,706 million from the end of the previous fiscal year) .
Liabilities increased by ¥397 million, mainly due to increases in the provision for bonuses (up ¥525 million from theend of the previous fiscal year) and “other” under current liabilities (up ¥867 million from the end of the previous fiscal
year), despite a decrease in long-term borrowings (including the current portion of long-term borrowings) (down ¥1,018
million from the end of the previous fiscal year).
Net assets increased by ¥202 million, mainly due to an increase in retained earnings (up ¥1,137 million from theend of the previous fiscal year), despite an increase in treasury stock (up ¥742 million from the end of the previous
fiscal year), which is a deduction item in net assets.
As a result, net asset per share increased by ¥18.89.

(3) Explanation of Consolidated Business Forecast and Other Forward-looking Statements
No adjustments were made concerning the business results projection for the year ending 29 February,2024 as reported
in the“Forecast of Consolidated Business Results for the Fiscal Year Ending February 29, 2024” released on 12 April
2023.

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 May 31, 2023)

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

28,498101

Account receivable-trade
Merchandise and finished goods

10,60423,484

12,681
26,129

636
559

517
623

Other
Allowance for doubtful accounts

4,261
(40)

3,588
(44)

Total current assets

71,83772,096

6,136

6,760

Goodwill
Other

1,922

1,827

7,024

6,648

Total intangible assets

8,946

8,475

27,8794,708

27,805
4,701

Allowance for doubtful accounts

16,023(105)

16,293(105)

Total investments and other assets

48,506

48,695Work in process
Raw materials and supplies

Non-current assets
Property, plant and equipment
Intangible asset

Investments and other assets
Investment securities
Investment property
Other

63,58963,930135,427

136,027

11,407
17

11,821
-

4,737
626

4,553
467

1,301
124

1,827
79

Other

120
7,905

142
8,773

Total current liabilities

26,23927,665Long-term borrowings

5,010

4,175

Provision for retirement benefits for directors

37
1,188

37
1,211

Other

2,414
1,658

2,392
1,465

Total non-current liabilities

10,3099,281

36,54936,946

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 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 May 31, 2023)

Net assets
Shareholders’ equity
Share capital
Capital surplus

15,00025,93315,00025,933Retained earnings
Treasury stock

56,052(3,031)

57,189(3,774)

Total shareholders’ equity

93,953

94,348

3,802

3,779

969
(245)

765
(189)

4,526

4,356

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

376

98,87899,080135,427

136,027

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

Consolidated cumulative
first quarter ofprevious fiscal year
(March 1,2022 to May 31,
2022)
38,122(Million yen)
Consolidated cumulative
first quarter ofcurrent fiscal year
(March 1,2023 to May 31,
2023)
39,372

Cost of sales

15,774

16,810Gross profit

22,34822,562

Selling, general and administrative expenses

20,744

20,726

Operating income

1,603

1,836

Interest income
Dividend income

4
120

13
418

Real estate income
Foreign exchange income

91
270

84
63

Gain on sale of investment securities
Other

17
173

63

Total non-operating income

678

643

19

12

21
-

11
11

28

18

Net sales

Non-operating income

Non-operating expenses
Interest expenses
Rental expenses on real estate
Loss on cancellation of insurance policies
Other
Total non-operating expenses
Ordinary income

69

54

2,212

2,425

Extraordinary income
3

-

Other

101
65

191
-

Total extraordinary income

170

191

-

4

135

17
-

Other

20
7

25
-

Total extraordinary losses

164

47

2,219

2,570

603

609

Gain on sales of non-current assets
Gain on sale of investment securities

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

Income before income taxes
Income taxes―current
Income taxes―deferred

(420)

(2)

Total income taxes

183

606

2,035

1,963

(28)

(25)

2,063

1,988

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

6

Quarterly Consolidated statements of comprehensive income
Consolidated cumulative first quarter

Net income
Other comprehensive income

Consolidated cumulative
first quarter ofprevious fiscal year
(March 1,2022 to May 31,
2022)
2,035

(Million yen)
Consolidated cumulative
first quarter ofcurrent fiscal year
(March 1,2023 to May 31,
2023)
1,963

Valuation difference on available-for-sale securities

352

(23)

Foreign currency translation adjustment

206
37

(200)
55

(27)

-

569

(166)

Comprehensive income

2,605

1,797

Total comprehensive income attributable to:
Owners of parent

2,600

1,818

4

(21)

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
Implementation Guidance on Accounting Standard for Fair Value Measurement
The Company and its subsidiaries have adopted the “Implementation Guidance on Accounting Standard for Fair
Value Measurement ” (ASBJ Guidance No. 31, issued on June 17, 2021; hereafter, referred to as the “Implementation
Guidance on Accounting Standard for Fair Value Measurement”) from the beginning of the first quarter of the current
consolidated fiscal year. The new accounting policy stipulated in the Implementation Guidance on AccountingStandard for Fair Value Measurement will be applied in the future in accordance with the transitional treatment
stipulated in Paragraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement.
There is no impact on the quarterly consolidated financial statements.

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 ¥187 million for 400,000 shares. And that as of the end of this fiscal year
under review were ¥176 million for 376,000 shares.
iii. Carrying Value of Debt Finance Posted Using the Gross Price Method
As of February 28, 2023: ¥255 million and as of March 31, 2023: ¥255 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

8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 ¥279 million for 496,000 shares as of the endof this fiscal year under review.

Application of the Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System
The Company and some of its domestic consolidated subsidiaries have shifted from a consolidated taxation system
to a group tax sharing system from the first quarter of the current consolidated fiscal year. In line with this, theaccounting and disclosure of corporate tax, local corporation tax, and tax effect accounting are based on the "Practical
Solution on the Accounting and Disclosure Under the Group Tax Sharing System" (Practical Issues Task Force No.
42, August 12, 2021; here after referred to as "Practical Issues Task Force No. 42"). In accordance with Paragraph
32 (1) of Practical Issues Task Force No. 42, no impact is deemed to arise from changes in accounting policies as aresult of its application.

9

Segments of the Company and Related Information
1. Consolidated cumulative first quarter of previous fiscal year (March 1,2022 to May 31, 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

36,754

1,356

38,11011

38,122

26

142

168

(168)

―

36,7801,498

38,278(156)

38,122

1,915

60

1,976

(372)

1,603

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 ¥(372) 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
None

A significant change in the amount of goodwill
None

A significant gain from negative goodwill
None

10

1. Consolidated cumulative first quarter of current fiscal year (March 1,2023 to May 31, 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

38,018

1,352

39,371

1

39,372

29

180

209

(209)

―

38,047

1,533

39,580(207)

39,372

2,025

118

2,143

(307)

1,836

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 ¥(307) million is transaction offsets among consolidated companies.
3. Segment income is adjusted to operating income listed in the consolidated financial statements.
(3) Goodwill or impairment loss in non-current assets by reportable segments

Important impairment loss in non-current assets
None

A significant change in the amount of goodwill
None

A significant gain from negative goodwill
None11