TSI HOLDINGS CO., LTD.
Financial Results Briefing for the Fiscal Year Ended February 2023
April 13, 2023

Event Summary[Company Name]TSI HOLDINGS CO., LTD.

[Company ID]

3608-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Financial Results Briefing for the Fiscal Year Ended February 2023

[Fiscal Period]

FY2023 Annual[Date]

April 13, 2023

[Number of Pages]

6[Time]

10:00 – 10:42(Total: 42 minutes, Presentation: 30 minutes, Q&A: 12 minutes)[Venue]Webcast[Venue Size][Participants][Number of Speakers]

7
Tsuyoshi Shimoji
Masanori Maekawa
Mitsuru Naito
Jun Imaizumi
Hiroyuki Watanabe
Shunsuke Hasegawa
Kohei Yamada

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President and CEO
Director, Platform Headquarters
Director, General Manager of Corporate
Headquarters
Senior Executive Officer
Operating Officer
Investor Relations and Corporate PR
Assistant Manager
Manager of SDGs Promotion Office

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1Question & Answer
Hasegawa [Q]: Now we move on to the question-and-answer session. We received questions from Mr.
Nozawa of Daiwa Securities Co.
“Following the relocation of the head office in the previous fiscal year, what structural reforms are planned
for the future and what effects, if any, can we expect?
Second, in light of the current financial results, are there any changes in your future policies, such as sales andoperating profit targets for the final year of the medium-term management plan?”Shimoji [A]: Thank you for your questions.
As for structural reforms, in large part, we would like to make infrastructure improvement. Some of this isbeing done in a flexible manner, especially the SCM part. We would like to reform our logistics system,
including investment in that area to ensure our information reaches our customers in the smoothest possible
manner.
Another thing I would like to mention is that we are now combining our human resources into a single
integrated HR department. Through this, we are promoting reforms, including the ease of work for all
employees.
Hasegawa [Q]: What about the second question: the targets for the final year of the medium-term plan andthe future policy?
Shimoji [A]: We have a plan for that, which we have announced in our mid-term plan, and we would like tocontinue to move forward with all of our targets.
Nozawa [M]: Thank you for your explanation. That's all from me.
Hasegawa [Q]: Second questioner. We have received this from Suzuki of Amundi Japan Ltd..
“What is the exchange rate for the fiscal year ending February 2024 and the preceding fiscal year? Also, what
are your thoughts on rising labor costs?”
Naito [A]: Regarding the exchange rate, there was a major depreciation of the yen last year, and it has settledat the current level, so it is difficult to predict the future. Basically, based on the current level, the budget forthe current fiscal year has been prepared in a way that there will be no significant fluctuation in exchange
rates.
Hasegawa [Q]: What about the second question: rising labor costs?
Naito [A]: With regard to labor costs, as you are aware, various companies have been raising wages in recentyears. We have included an increased personnel expenses for the current fiscal year in the budget. We madethe plan, including wages and bonuses, increase with the good performance of the Company. Please forgive
me for the specific percentages, but in this case in particular, we are controlling overall personnel costs byraising the level of the workforce, especially in the younger age groups.

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H
Suzuki [M]: I understand. Thank you very much.
Hasegawa [Q]: I received this from Mr. Shimada of Nikkei Newspaper.
“While wages are rising domestically, global inflation continues to rise. What are your thoughts on
expectations and concerns about the future?”
Shimoji [A]: As I said in the video, we want to focus on trying to be a more unique brand as something wehave to do more than inflation. We have the work of increasing value first and foremost as a high priority.
This is our answer with respect to how customers can choose us in the face of inflation. As for expectations
and concerns about the future, there are always concerns. Our expectation is to go out into the world andchallenge overseas more. In this sense, I have very high expectations for the future, and I would like to create
a new way of apparel.
Shimada [M]: Thank you. That is all from me.
Hasegawa [Q]: I received a question from Mr. Sugie of Senken Shimbun.
“Your golf brand took the first place in the brand ranking for the first time in a full year in last year. What are
your thoughts on this? Also, what is your outlook for golf demand in the future?”
Shimoji [A]: Thank you for your questions.
Frankly speaking, I am very honored and happy. However, we operate six brands, and our focus is not only ongolf, but also on how golf apparel can be distributed in the fashion industry. In that sense, I would like tocreate a worldview not only in the golf course, but also for use and enjoyment as street wear. In that sense,
as a clothing brand, we believe that receiving a certain position and recognition like this is a great
encouragement for us to take the next step.
Sugie [M]: I understand. Thank you very much.
Hasegawa [Q]: We have a follow-up question from Mr. Aoki of ISC Advisors, LLC..
“Please tell us about the measures taken to reinstate the TOP 10 NANO universe. What is your assumption of
the time frame for the onset of the effect and how long it will take for the recovery to occur?”Shimoji [A]: First of all, we started to make improvements when the pandemic began, where we had alockdown, or a stage, where business was at a standstill. One reason for the gradual recovery, including in Q3,
is that we have been more compact in the way the team is organized and have been putting together theroles of the team structure.
Most recently, as I will show you, in the current March, all channels of our prop stores, outlet, and EC storesexceeded last year's results, with a progress of 111%. Real stores in particular have exceeded 120% comparedto the previous year. This does not mean that we will be able to easily gain momentum, but we are in theprocess of further reviewing the product mix and unit price settings for 2023 AW on a firm and solid basis.
We would also like to work on a new EC strategy centered on third party, with expansion as the main focus.
We have been using the NANO universe as a resource because it is loved by a wide range of customers, andwe are determined to improve our product policies and measures. However, since it is a large part of thebusiness, we believe that earnings will change based on steady improvement.

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Aoki [M]: It's okay. Thank you very much.
Hasegawa [M]:This concludes the presentation of financial results for the fiscal year ended February 28, 2023. Thank youvery much for your time today.
Underlying [M]: Thank you very much.
[END]______________
Document Notes
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Portions of the document where the audio is unclear are marked with [Inaudible].
Portions of the document where the audio is obscured by technical difficulty are marked with [TD].
Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides ananswer from the Company, or [M] neither asks nor answers a question.
This document has been translated by SCRIPTS Asia.

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