Business Results for the Fiscal Year Ended February 28, 2023
[Japanese GAAP] (Consolidated)
April 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
Director, General Manager of Corporate Headquarters Mitsuru Naito
TEL: +81-3-5785-6400

Contact:

Scheduled date of Annual General Meeting of shareholders: May 26, 2023
Scheduled date of financial report:
May 26, 2023
Scheduled date to begin dividend payment:
May 8, 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 Fiscal Year Ended February 28, 2023 (March 1, 2022 to February 28, 2023)(1) Consolidated results of operations(% change from the previous fiscal year)

Net sales

FY ended February 2023
FY ended February 2022

Million yen
154,456
140,382

Operating income
%
10.0
4.7

Million yen
2,329
4,440

%
(47.5)―(Notes) Comprehensive income: Fiscal year ended February 28, 2023
Fiscal year ended February 28, 2022
Net income
per share

Diluted net
income per share

Yen
35.21
11.32

FY ended February 2023
FY ended February 2022

Ordinary income
Million yen
3,859
5,834

%
(33.8)―

Profit attributable toowners of parent
Million yen
3,063
1,022

%
199.6
(73.5)¥4,164 million―%¥181 million (96.1%)
Return on
equityYen――(Reference) Equity in earnings of affiliates: Fiscal year ended February 28, 2023
Fiscal year ended February 28, 2022

Ratio of ordinary
income to total
assetsRatio of operating
income to net sales

%
2.8
4.0

%
1.5
3.2

%
3.1
1.1
¥9 million¥27 million(Note) The "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ)
Statement No. 29 issued on March 31, 2020) and other accounting standards have been applied from the
beginning of the current consolidated fiscal year. The figures for the the fiscal year ending February 28,
2023 are obtained after the application of the above accounting standards.
(2) Consolidated financial position
Total assets
As of February 28, 2023
As of February 28, 2022

Net assets

Million yen
135,427
140,440

Million yen
98,87897,736(Reference) Shareholders’ equity: As of February 28, 2023,
As of February 28, 2022,

Shareholders’ equity
ratio
%
72.7
69.2

Net assets per share
Yen
1,168 69
1,075 44

¥98,480 million¥97,212 million(Note) The "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ)
Statement No. 29 issued on March 31, 2020) and other accounting standards have been applied from the
beginning of the current consolidated fiscal year. The figures for the fiscal year ending February 28, 2023
are obtained after the application of the above accounting standards.
(3) Consolidated results of cash flows
Cash flows fromoperating activities
FY ended February 2023
FY ended February 2022

Million yen
1,326
1,380

Cash flows frominvesting activities
Million yen(110)(3,981)

Cash flows fromfinancing activities
Million yen(9,589)(8,960)Cash and cash
equivalents at theend of period
Million yen
30,721
38,503

2. Dividends

Yen

Yen

Yen

Yen

Yen

Million yen%

Rate of total
dividend to
net assets(Consolidated)%

FY ended February 2022

―

0.00

―

5.00

5.00

457

44.2

0.5

FY ended February 2023

―

0.00

―

10.00

10.00

851

28.4

0.9

0.00

―

15.00

15.00

Annual dividend
End of
1Q

FY ended February 2024
(forecast)End of2Q

End of3Q

Year-end

Total

Dividend
Total dividend payout ratio(Consolidated)

36.1

3. Forecast of Consolidated Business Results for the Fiscal Year Ending February 28, 2024 (March 1, 2023 to February 29, 2024)(% change from the corresponding period of the previous fiscal year)
Net sales

Second quarter(Cumulative)
Full fiscal year

Operating income

Million yen%

Million yen

75,000162,000

4.0
4.9

1,000
4,700

%

Ordinary income
Million yen

69.8
101.8

%

1,400
5,500

(26.0)
42.5

Profit attributable toowners of parent
Million yen
1,000
3,500

Net income
per share%Yen(55.6)
14.3

11.87
41.54

＊Notes:(1) Changes in significant subsidiaries during the period: None
(2) 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 "3. Consolidated Financial Statements and Major Notes, and (5) Notes to Consolidated Financial
Statements (changes in accounting policies)” on page 17 of attached materials.
(3) Number of shares issued (common stock)a. Number of shares issued
at the end of period(treasury stock included) FY ended February 2023
b. Number of treasury
stock at the end of period FY ended February 2023
c. Average number ofshares over the period
FY ended February 2023

90,144,093 shares

FY ended February 2022

95,783,293 shares

5,878,463 shares

FY ended February 2022

5,390,033 shares

86,994,620 shares

FY ended February 2022

90,306,433 shares* Summary of financial statements is not subject to audit by a certified public accountant or an audit corporation.
*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 "(4)Explanation of Consolidated Business Forecast and Other Forward-looking Statements " on page 4 for the assumptions underlying
the forecasts and cautionary statements regarding the use of the forecasts.

Contents of Attached Materials
1. Overview of Business Results ···································································································· 2(1) Overview of Business Results for the Fiscal Year Ended February 28, 2023 ································· 2(2) Overview of Financial Position ···························································································· 3(3) Overview of Cash Flows ······································································································· 3(4) Outlook ····························································································································· 4
2. Basic Stance on the Selection of Accounting Standards ·································································· 4
3. Consolidated Financial Statements and Major Notes ···································································· 5(1) Consolidated Balance Sheets ································································································ 5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ········· 7(3) Consolidated Statements of Changes in Net Assets ·································································· 8(4) Consolidated Statements of Cash Flows ················································································11(5) Notes to Consolidated Financial Statements ··········································································13
Going Concern Assumption ··································································································13
Major Notes to Consolidated Financial Statements ··································································13
Change in an Accounting policy ·················································································· 17
Additional Information ········································································································19
Segments of the Company and Related Information ·································································21
Per Share Information ·········································································································23
Important Subsequent Events ······························································································ 24

-1-

1.

Overview of Business Results(1) Overview of Business Results for the Fiscal Year Ended February 28, 2023
In the apparel industry, during the consolidated cumulative period under review (from March 1, 2022 to February
28, 2023), as behavioral restrictions due to the COVID-19 pandemic eased and economic activities normalized,
consumer spending recovered alongside demand for going out. However, the outlook remained uncertain due to soaring
prices of resources across the globe and sharp foreign exchange fluctuations caused by the situation in Russia andUkraine.
Under such a business environment, our Group continued drastic reforms to respond to changes in the social
environment and consumer lifestyle associated with the progress of digital transformation (DX) and to create ourunique value to be offered, based on the TSI Innovation Program 2025 (TIP25), the new medium-term management
plan toward 2025 announced in April 2022. In order to create a form of fashion entertainment, we have been focusing
on investing in growth business areas, primarily to expand the e-commerce (EC), and have been shifting from thephase of closing unprofitable stores to the phase of opening large-scale stores and reopening stores in prime locations
to develop attractive stores and transform the profit structure.
Furthermore, we implemented an absorption-type merger (with the subsidiary TSI Inc. as the surviving company
and the subsidiary Ueno Shokai Co., Ltd. as the absorbed company) in March 2022 in the Second step of our efforts tointegrate the group companies into one company. Through the absorption-type merger, we have reduced the overlap offunctions of the two companies and streamlined the organizational structure to lower the break-even point, strengthen
the governance of the Group as a whole, and to steadily strengthen profitability while leveraging the individuality ofthe brands we have built to date.
In addition, through the relocation of the head office on September 20, 2022 and the associated consolidation of
offices for each business, we aimed to improve the efficiency of the entire business, including group companies.
Our group is working to secure the in-store sales of our group companies and strengthen sales through EC, and isalso making thorough efforts to curb excess inventory and control costs by strictly monitoring product purchases andholding them to appropriate standards. Despite that, severe situation continued, partly due to the reaction to theemergency SG&A cost containment measures implemented in the same quarter of the previous year in response to the
spread of the COVID-19 infection.
Consequently, the net sales were 154,456 million yen (up 10.0% compared with the previous fiscal year), theoperating income was 2,329 million yen (down 47.5% compared with the previous fiscal year ), and the ordinary income
reached 3,859 million yen (down 33.8% compared with the previous fiscal year ).
Furthermore, the quarterly profit attributable to owners of the Group’s parent was 3,063 million yen (up 199.6%
compared with the previous fiscal 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 10.0% compared with the previous fiscal year
to 149,349 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-2-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 5,825 million yen (up 10.8% compared with theprevious fiscal year ).
(2) Overview of Financial Position(Million yen)
At the end of FY2022(As of February 28, 2022)

At the end of FY2023(As of February 28, 2023)

Increase/decrease

Total assets

140,440

135,427(5,013)Liabilities

42,70436,549(6,155)

Net assets

97,736

98,878

1,142

Shareholders’ equity ratio

69.2%

72.7%

3.5%

¥1,075.44¥1,168.69¥93.25

Net assets per share

Total assets decreased by ¥5,013 million due to a decrease in cash and deposits (down ¥7,053 million from the endof the previous period), a decrease in “other” of the current assets (down ¥2,001 million from the end of the previousyear), and decrease in leasehold and guarantee deposits (down ¥1,573 million from the end of the previous period),
despite an increase in inventories (up ¥5,952 million from the end of the previous period).
Liabilities decreased by ¥6,155 million due to a decrease in long-term borrowings (including the current portion of
long-term borrowings) (down ¥6,267 million from the end of the previous period).
Net assets increased by ¥1,142 million due to an increase in retained earnings (up ¥2,815 million from the end of theprevious period), a decrease in treasury stock, which is a deduction item in net assets (down ¥637 million from the endof the previous period), and an increase in valuation difference on available-for-sale securities (up ¥744 million fromthe end of the previous period), despite a decrease in capital surplus (down ¥3,321 million from the end of the previous
period).
As a result, net asset per share increased by ¥93.25.
(3) Overview of Cash Flows(Million yen)
At the end of FY2022
At the end of FY2023
Increase/decrease(As of February 28, 2022) (As of February 28, 2023)
Cash flows from operating activities

1,380

1,326

(54)

Cash flows from investing activities(3,981)

(110)

3,870

Cash flows from financing activities(8,960)(9,589)(628)

Cash and cash equivalents at end of period

38,50330,721(7,782)

1) Cash flows from operating activities:
Net cash provided by operating activities for the consolidated fiscal year under review amounted to ¥1,326 million(down 3.9% year on year) due to the recording of income before income taxes of ¥2,804 million, depreciation of ¥3,508
million, which is non-cash expenses, and impairment loss of ¥1,753 million, despite an increase in inventories by¥5,781 million and a decrease in accrued consumption taxes by ¥1,279 million.
2) Cash flows from investing activities:
Net cash provided by investing activities for the consolidated financial year under review amounted to ¥110 million(compared to net cash used in investing activities of ¥3,981 million in the previous fiscal year) due to the purchase ofproperty, plant, and equipment (store interior assets, etc.) of ¥2,480 million, the purchase of intangible assets of ¥1,272
million, and investment securities of ¥4,183 million, despite the sales of investment securities of ¥6,368 million andthe collection of leasehold and guarantee deposits of ¥1,398 million.
3) Cash flows from financing activities:
Net cash used in financing activities for the consolidated fiscal year under review amounted to ¥9,589 million(¥8,960 million in the previous fiscal year) due to the repayment of long-term borrowings of ¥6,267 million, purchase-3-

of treasury stock of ¥2,322 million, and purchase of shares of subsidiaries that do not result in change in scope of
consolidation of ¥569 million.
Consequently, cash and cash equivalents at the end of the current consolidated fiscal year decreased by ¥7,782
million from the end of the previous fiscal year to ¥30,721 million.
(For Reference) Trends in Cash-Flow Indicators
FY2021
FY2022
FY2023(As of February 28, 2021) (As of February 28, 2022) (As of February 28, 2023)
Shareholders' equity ratio (%)

62.6

69.2

72.7

Shareholders’ equity ratio based on
current market price (%)

15.3

21.5

38.5

Years of debt redemption (Years)

―

11.7

7.4

Interest coverage ratio (Times)

―

12.6

18.6

Notes:
1. Shareholders’ equity ratio based on current market price (%) = total market value of common stock ÷ total assets
2. Years of debt redemption = interest-bearing debt ÷ cash flows from operating activities
3. Interest coverage ratio = cash flows from operating activities ÷ interest payments
4. Interest-bearing debt includes all balance-sheet debt for which interest payments are being made.
5. Interest payment are based on the amount of interest paid on the consolidated statement of cash flows.
6. All indicators are calculated based on consolidated financial figures.
7. As the cash frows from operating activities for the fiscal year ended February 28, 2021 was negative, the years ofdebt redemption and interest coverage ratio are not calculated.
(4) Outlook
Although behavioral restrictions due to the COVID-19 pandemic have eased and economic activities have graduallynormalized, the Russia-Ukraine situation, as well as the impact of global exchange rate fluctuations and price jumps
arising from it, remains unpredictable.
We expect sales to recover steadily for the year ending February 29, 2024, and plan to invest intensively in growthareas, such as the EC and athleisure, and highly profitable marketing. Based on this, we expect net income attributableto owners of parents for fiscal 2023 to be ¥3,500 million .
2.

Basic Stance on the Selection of Accounting Standards
The TSI Holdings Group has adopted the Japanese Generally Accepted Accounting Principles (Japanese GAAP) to

facilitate comparisons of consolidated financial statements of different fiscal terms and companies.
Meanwhile, the Group’s policy is to properly address the application of International Financial Reporting Standards(IFRS) after taking into consideration various circumstances in Japan and overseas.

-4-

2. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Million yen)
FY2022(As of February 28, 2022)

FY2023(As of February 28, 2023)

39,25832,205

10,378―AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Notes receivable-trade

―

127

―

10,604969―

Merchandise and finished goods
Work in process

17,597494

23,484636

Raw materials and supplies
Other

634
6,263

559
4,261

(48)

(40)

75,547

71,837

Account receivable-trade
Securities

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

16,126

15,667

Accumulated depreciation(11,639)(11,536)

Buildings and structures, net

4,487

4,131

Machinery, equipment and vehicles

1,079

1,048

Accumulated depreciation

(907)

(937)

Machinery, equipment and vehicles, net

172

111

958
532

955
533

(517)

(525)

Land
Leased assets
Accumulated depreciation
Leased assets, net
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

15

7

6,876

6,821

(5,965)(5,890)

911

931

6,544

6,136

2,044

1,922

Trademark right
Other

3,379
3,841

3,090
3,933

Total intangible assets

9,265

8,946

Investments and other assets
Investment securities

28,397

27,879Long-term loans receivable
Leasehold and guarantee deposits

94
10,742

71
9,168

Deferred tax assets
Investment property, net

634
4,735

1,020
4,708

Other
Allowance for doubtful accounts

4,581
(102)

5,762
(105)

Total investments and other assets

49,08348,50664,89363,589140,440

135,427

Total non-current assets
Total assets-5-

(Million yen)
FY2022(As of February 28, 2022)

FY2023(As of February 28, 2023)

10,595

11,407

Short-term borrowings
Current portion of long-term borrowings

114
6,212

17
4,737

Lease obligations
Accounts payable–other

11
2,925

4
3,154

Income taxes payable
Contract Liability

251

626
547

Liabilities
Current liabilities
Notes and accounts payable–trade―

Provision for bonuses
Provision for point card certificates

1,327
453

1,301

Provision for shareholder benefit program
Provision for sales returns

139
310

124

Reserve for transfer
Asset retirement obligations

87
650

―

120

Other

5,293

4,199

Total current liabilities

28,37526,239Long-term borrowings
Lease obligations

9,803
36

5,010
4

Deferred tax liabilities
Provision for retirement benefits for directors

1,065
37

314
37

Retirement benefit liability
Asset retirement obligations

979
2,010

1,188
2,414

―
―

Non-current liabilities

Other

396

1,339

Total non-current liabilities

14,32910,309Total liabilities

42,70436,549

Share capital
Capital surplus

15,00029,25515,00025,933Retained earnings
Treasury stock

53,236(3,668)56,052(3,031)

Total shareholders’ equity

93,822

93,953

Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

3,058

3,802

Foreign currency translation adjustment
Remeasurements of defined benefit plans

457
(126)

969
(245)

Total accumulated other comprehensive income

3,389

4,526

523

397

Non-controlling interests
Total net assets
Total liabilities and net assets-6-

97,736

98,878140,440

135,427

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated statements of income(Million yen)
FY2022(March 1, 2021 to
February 28, 2022)
140,382

FY2023(March 1, 2022 toFebruary 28, 2023)
154,456

Cost of sales

63,55569,555Gross profit

76,82684,901

Selling, general and administrative expenses

72,386

82,572

Operating income

4,440

2,329

Net sales

Non-operating income
Interest income

30

28

Dividend income
Real estate income

761
300

692
354

Foreign exchange gain
Other

302
512

476
307

1,908

1,858

Interest expenses
Rental expenses on real estate

109
134

71
53

Loss on valuation of investment securities
Investment loss of anonymous association

20

―

―

84

Other

250

119

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sale of investment securities
Subsidies for employment adjustment
Other
Total extraordinary income

514

328

5,834

3,859

391

4

1,714
33

881

403

179

2,543

1,065

92
4,225

40
1,753

16
4

―

―

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on sales of investment securities
Loss on liquidation of subsidiaries and associates
Loss due to temporary closing
Provision for transfer costs
Other

0

1,193
87

―

45

326

―

Total extraordinary losses

5,664

2,120

Income before income taxes

2,712

2,804

Income taxes―current
Income taxes―deferred

528
1,186

1,024
(1,233)

Total income taxes

1,715

(208)

Net income

996

3,012

Net loss attributable to non-controlling interest

(25)

(51)

1,022

3,063

Net income attributable to owners of parent-7-

Consolidated statements of comprehensive income(Million yen)

Net income

FY2022(March 1, 2021 to
February 28, 2022)
996

FY2023(March 1, 2022 toFebruary 28, 2023)
3,012(1,753)

744

963
(40)

558
(119)

15

(31)

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income

(815)

1,152

Comprehensive income

181

4,164

Total comprehensive income attributable to:
Owners of parent

155

4,200

25

(36)

Non-controlling interests(3) Consolidated Statements of Changes in Net Assets
FY2021 (March 1, 2021 to February 28, 2022)(Million yen)
Shareholders’ equity

Balance at the beginningof period
Cumulative effect ofchange in accounting
policyBalance at the beginningof the period reflectingchange in accounting
policyShare capital

Capital surplus

15,00029,255Retainedearnings
52,213

Treasury stock

Total
shareholders'equity(3,747)92,720―15,00029,25552,213(3,747)92,720Changes during period―

Dividends of surplus
Net income
attributable to ownersof parent
Change in the scope of
consolidation
Change in ownershipinterests of parent due
to transactions with
non-controllinginterests
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at the end of
period

1,022

1,022

―

―

(0)

(0)

79

79

―

―

―

1,022

79

1,101

15,00029,25553,236△3,66893,822-8-

Accumulated other comprehensive income
NonValuation
Foreign currency Remeasure-ments Total accumulated controlling
difference ontranslationof defined benefit
other compreinterests
available-for-saleadjustment
plans
hensive income
securities
Balance at the beginningof period
Cumulative effect ofchange in accounting
policyBalance at the beginningof the period reflectingchange in accounting
policy

4,812

(469)

(86)

4,256

452

Total net
assets97,430

―

4,812

(469)

(86)

4,256

452

97,430Changes during period―

Dividends of surplus
Net income
attributable to ownersof parent
Change in the scope of
consolidation
Change in ownershipinterests of parent due
to transactions with
non-controllinginterests
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at the end of
period

1,022

―

―

(0)
79
―
(1,753)

927

(40)

(866)

70

(795)

(1,753)

927

(40)

(866)

70

306

3,058

457

(126)

3,389

523

97,736FY2023 (March 1, 2022 to February 28, 2023)(Million yen)
Shareholders’ equity

Balance at the beginningof period
Cumulative effect ofchange in accounting
policyBalance at the beginningof the period reflectingchange in accounting
policyShare capital

Capital surplus

15,00029,255Retainedearnings
53,236

Total
shareholders'equity(3,668)93,822(288)

15,00029,25552,947

Changes during period(288)(3,668)93,533―

Dividends of surplus
Net income
attributable to ownersof parent
Change in the scope of
consolidation
Change in ownershipinterests of parent due
to transactions with

Treasury stock

(430)

(457)

(457)

3,063

3,063

498

498
(430)

-9-

Shareholders’ equity
Share capital
non-controllinginterests
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at the end of
periodRetainedearnings

Capital surplus

Treasury stock

Total
shareholders'equity(2,322)(2,322)68

68(2,891)

2,891―(3,321)

3,104

637

420

15,00025,93356,052(3,031)

93,953

Accumulated other comprehensive income
Valuation difference Foreign currency
on available-fortranslation
sale securities
adjustment
Balance at the beginningof period
Cumulative effect ofchange in accounting
policyBalance at the beginningof the period reflectingchange in accounting
policy3,058

Remeasurements ofdefined benefit
plans

Total
accumulated
other comprehensive income

Noncontrollinginterests

(126)

3,389

523

457

Total net
assets97,736
(288)

3,058

457

(126)

3,389

523

97,447

Changes during period
Dividends of surplus
Net income
attributable to ownersof parent
Change in the scope of
consolidation
Change in ownershipinterests of parent due
to transactions with
non-controllinginterests
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at the end of
period

(457)
3,063
498

(430)

(2,322)
68
―
744

511

(118)

1,137

(126)

1,010

744

511

(118)

1,137

(126)

1,430

3,802

969

(245)

4,526

397

98,878- 10 -

(4) Consolidated Statement of Cash Flows(Million yen)
FY2022(March 1, 2021 to
February 28, 2022)

FY2023(March 1, 2022 toFebruary 28, 2023)

Cash flows from operating activities
Income before income taxes
Depreciation

2,712
3,650

2,804
3,508

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

788
3

423
(9)

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement
benefits for directors
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for sales returns
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in provision for shareholder
benefit program
Increase (decrease) in provision for relocation
expenses
Interest and dividend income
Interest expenses

(90)

63

(4)

-

21
18

(25)
(309)

31

(454)

13

(15)

87

(87)

(792)
109

(720)
71

Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets

(375)
92

(4)
40

Impairment loss
Loss due to temporary closing

4,225
1,193

1,753

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities(1,698)
20

(881)
179

Loss on liquidation of subsidiaries and associates
Subsidies for employment adjustment

4
(33)

―

Decrease (increase) in accounts receivables–trade
Decrease (increase) in inventories

459
(907)

(243)
(5,781)

Increase (decrease) in accounts payables–trade
Increase (decrease) in accrued consumption taxes

(994)
(303)

747
(1,279)

Increase (decrease) in accounts payable–otherOther(1,741)
(615)

208
140

Subtotal

5,873

127

Interest and dividends received
Interest paid

792
(109)

720
(71)

Income taxes paid
Income taxes refund(3,201)
90

(651)
1,200

Payment for loss due to temporary closing
Payment for voluntary retirement-related expenses(1,118)(947)―

Net cash provided by (used in) operating activities

1,380

1,326

- 11 -―――

(Million yen)
FY2022(March 1, 2021 to
February 28, 2022)

FY2023(March 1, 2022 toFebruary 28, 2023)

Cash flows from investing activities
Net decrease (increase) in time deposits
Proceeds from sales of securities

(689)
―

257
995

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(1,123)56(2,480)22

Purchase of investment securities
Proceeds from sales of investment securities(8,512)
6,137(4,183)
6,368

(967)
380

(1,272)(1,195)

(522)

1,214

1,398

89
(43)

4
(1)

26

25

(91)

―

25

1

20
(354)

(826)

Purchase of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee
deposits
Proceeds from collection of leasehold and guarantee
deposits
Proceeds from sales of investment property
Short-term loan advances
Collection of short-term loans receivable
Payments for sales of shares of subsidiaries resulting
in change in scope of consolidation
Proceeds of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds of shares of business transfer
Payments for asset retirement obligations

―

―

Other

1,047

102

Net cash provided by (used in) investing activities(3,981)

(110)

(52)
(8,969)1(6,267)

(17)
(0)

(42)
(2,322)

79
―

68
(457)

―

(569)

(8,960)(9,589)304

477

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Purchase of treasury shares
Proceeds from sales of treasury shares
Dividends paid
Payments for sales of shares of subsidiaries withoutchange in scope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents due tochange in scope of consolidation
Cash and cash equivalents at end of period- 12 -(11,257)(7,895)49,761

38,503―113

38,50330,721

(5) Notes to the Consolidated Financial Statements

Going Concern Assumption
Not applicable

Major Notes to Consolidated Financial Statements
1. Scope of consolidationi. Number of consolidated group companies: 27
Major subsidiaries:
TSI Inc.
HUF Holdings, LLC
Consolidated subsidiaries other than the above: 25

Change in the scope of consolidation
In the consolidated fiscal year under review, TSI Inc., a consolidated subsidiary of the Company, completed anabsorption-type merger with Ueno Shokai Co., Ltd., another consolidated subsidiary of the Company. Hence, Ueno
Shokai Co., Ltd. was excluded from the scope of consolidation.
VAN NANG BANOK CO., LTD., which Toska-Bano’k Co., Ltd., a consolidated subsidiary of the Company, finances,increased in significance and was therefore included in the scope of consolidation.
TSI ASIA LIMITED lost significance and was excluded from the scope of consolidation.
The Company included the newly established TSI FASHION TAIWAN CO., LTD. in the scope of consolidation.
The Company transferred all shares in Shanghai Dongnoue Tokiso Trading Co., Ltd. and therefore excluded it fromthe scope of consolidation.
ii. Major non-consolidated subsidiaries
Major non-consolidated subsidiaries:
Tokyo Fashion (Kaito) Co., Ltd.

Reason for exclusion from the scope of consolidation
Non-consolidated subsidiaries are excluded from the scope of consolidation because they are small companies andtheir combined total assets, net sales, net income or loss (amount corresponding to the Company's equity interest),
retained earnings (amount corresponding to the Company's equity interest), etc., do not have a material impact on
the consolidated financial statements.
2. Equity method
i. Number of subsidiaries and affiliates accounted for by the equity method: 1
Main company name:
RICHARD HENDRIX LLC
ii. Non-consolidated subsidiaries not accounted for by the equity method
Company name:Tokyo Fashion (Kaito) Co., Ltd.

Reason for exclusion from the scope of equity method
Non-equity method companies excluded from the scope of application of the equity method because their impact on
the Company's net income/loss (amount corresponding to the Company's equity interest) and retained earnings(amount corresponding to the Company's equity interest) is not material and their overall importance is not
significant.

- 13 -

3. Accounting period of consolidated subsidiaries
Among the Company’s consolidated subsidiaries, Tokyo Style Hong Kong Co., Ltd., TSI US Holdings Co., Ltd.,AVIREX SHANGHAI TRADING CO., LTD., Efuego Corp., Van Nang Banok Co., Ltd., and TSI FASHION TAIWAN
CO., LTD.

close their accounts on December 31.

The financial statements of each company as of December 31 are used in the preparation of consolidated financial
statements. Significant transactions that occurred between December 31 and the consolidated closing date areadjusted as necessary for consolidation purposes.
Among consolidated subsidiaries, HUF Holdings, LLC and HUF Worldwide, LLC, with the annual business term
set at 52 weeks, closed their accounts on the Saturday closest to December 31.
The financial statements of each company as of January 1, 2023 are used in the preparation of consolidated financial
statements. Significant transactions that occurred between January 1, 2023 and the consolidated closing date areadjusted as necessary for consolidation purposes.
Among consolidated subsidiaries, SANEI INTERNATIONAL USA LLC closes its accounts on June 30.
The quarterly financial statement of the company as of December 31 are used in the preparation of consolidated
financial statements. Significant transactions that occurred between December 31 and the consolidated closing dateare adjusted as necessary for consolidation purposes.
4. Accounting policies(1) Valuation criteria and methods for significant assets
i. Securities
Other securities
Other than shares without a market price:
Marketable securities are carried at fair value based on quoted market prices as of the end of the fiscal year.
Any changes in unrealized gain or loss are directly included in net assets and the costs of securities sold are
generally calculated by the moving average method.
Shares without a market price:Non-marketable securities are carried at cost determined by the moving average method.
ii. Derivative financial instruments
Derivative financial instruments are stated at fair value.
iii. Inventories
a. Merchandise and finished goods, work in process and raw materials
They are primarily stated at cost method determined by the weighted average method (values on the balance
sheet are subject to the book value reduction method based on decreased profitability.)b. Supplies
They are primarily stated at the last purchase cost method (values on the balance sheet are subject to the bookvalue reduction method based on decreased profitability.)(2) Depreciation method for significant depreciable assets
i. Property, plant and equipment (excluding leased assets) and investment property
The declining-balance method is mainly used. However, the straight-line method is used for buildings (excluding
attached facilities) acquired on or after April 1, 1998, and for building fixtures and structures acquired on or after
April 1, 2016.
The main useful lives are as follows.
Buildings and structures

3 to 50 years

Others2 to 20 years

ii. Intangible assets (excluding leased assets)
The straight-line method is adopted.

- 14 -

The main useful lives are as follows.
Software5 to 10 years

Trademark rights

10 yearsiii. Leased assets
Leased assets related to finance lease transactions other than those where the ownership of the lease assets isdeemed to be transferred to the lessee
Amortized by the straight-line method, assuming the lease period as the useful life and no residual value.
(3) Basis for accounting for significant provisions
i. Allowance for doubtful accounts
To prepare for losses due to the credit loss of monetary claims, the domestic consolidated subsidiaries consider
the actual loan loss rate for general claims and the collectability of specific claims such as doubtful debts
individually and record the estimated uncollectible amount. Overseas consolidated subsidiaries have provided
an allowance for doubtful accounts at the estimated uncollectible amount mainly for specific receivables.
ii. Provision for bonuses
To provide for the payment of bonuses to employees, the Company and its certain subsidiaries record theestimated amount of bonus payments corresponding to the consolidated fiscal year under review.
iii. Provision for shareholder benefits
Based on its shareholder benefit program, the Company posted an amount that it expects to be used in the future
in line with past trends as of the end of the fiscal year under review to provide for expenses arising from the useof shareholder benefit coupons.
v. Provision for retirement benefits for directors
Certain consolidated subsidiaries posted amounts stipulated under internal regulation as of the end of the fiscal
year under review to provide for the payment of retirement benefits to directors.
(4) Accounting method for retirement benefits
i. Method of attributing the estimated amount of retirement benefits to the period
In calculating the retirement benefit obligations, the estimated amount of retirement benefits attributed to theend of the fiscal year under review is based on the benefit calculation formula.
ii. Amortization of actuarial differences and past service costs
Past service costs are amortized on a straight-line method over a fixed number of years (5 years) within the
average remaining service period of employees at the time they are incurred.
Actuarial differences are amortized on a straight-line method over a fixed number of years (5 years) within the
average remaining service period of employees at the time they are incurred. The Company amortizes them inthe following year of occurrence.
iii. Adoption of the simplified method for small-scale companies
Certain consolidated subsidiaries have adopted the simplified method of calculating retirement benefit liabilities
as well as retirement benefit expenses by using the amount required to be paid at the end of the fiscal year forvoluntary retirement benefits as the retirement benefit obligation.
(5) The basis for recognizing significant revenues and expenses
Major performance obligations in the main businesses related to revenue from contracts with customers of theCompany and its consolidated subsidiaries and the normal timing of satisfying the performance obligations(normal timing of recognizing revenues) are as follows:- 15 -

Apparel-related businesses
Apparel-related businesses are primarily involved in the planning, manufacturing, and sales of clothes.
Regarding such sales of merchandise and finished goods, in the retail business, performance obligations are
judged to be satisfied when customers obtain control over the merchandise and finished goods at the time of theirdelivery, and therefore, revenues are recognized at the time of delivery. In the wholesale and EC businesses, theperiod for transferring control over merchandise and finished goods to customers is the normal period, andtherefore, revenues are recognized at the time of shipping.
In the point programs run by some of the consolidated subsidiaries, points given to customers are recognized
as performance obligations, and the transaction price is allocated to record contract liabilities. Revenues arerecognized when customers use these points.
Other businesses
Other businesses include synthetic resin related and restaurant businesses. In the sales of such merchandiseand finished goods, performance obligations are judged to be satisfied when customers obtain control over themerchandise and finished goods at the time of their delivery, and therefore, revenues are recognized at the timeof delivery.
In any transaction, consideration is received approximately a month after satisfying performance obligations,and no significant financial factors are included.
(6) Basis for translating significant foreign currency-denominated assets and liabilities into Japanese currency
Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the
spot rates of exchange on the consolidated closing date and the translation differences are treated as profit or loss.
Assets and liabilities as well as revenues and expenses of foreign consolidated subsidiaries are translated into
Japanese yen at the spot rate of exchange on the consolidated closing date, with translation differences included
in foreign currency translation adjustments and non-controlling interests in net assets.
(7) Significant hedge accounting methods
i. Hedge accounting method
Deferred hedge accounting is adopted.
However, the allocation method is applied to currency swaps that meet the requirements for the allocation
method and the exceptional method is applied to interest rate swaps where the requirements for the exceptional
method are met.
ii. Hedging instruments and hedged items
a. Hedging instruments Foreign exchange forward contracts
Hedged items

Foreign currency denominated trade payables and forecasted foreign currencytransactions

b. Hedging instruments Interest rate swaps
Hedged items

Interest on borrowingsc. Hedging instruments Currency swap
Hedged items

Foreign currency denominated borrowingsiii. Hedging policy
The Company hedges the foreign exchange fluctuation risk and interest rate fluctuations in accordance with the“Derivatives Management Regulations,” which are internal regulations.
iv. Assessment of hedge effectiveness- 16 -

When entering into foreign exchange forward contracts, the Company allocates forward exchange contracts ofthe same amount and date denominated in the same currency in accordance with a risk management policy.
Because the correlation with subsequent fluctuations in foreign exchange markets is completely maintained,
any evaluation of effectiveness at the time of account settlement is not conducted.
In addition, any evaluation of effectiveness at the time of account settlement is not conducted for currency swaps
using the allocation method and interest rate swaps that meet the requirements for special treatment.
(8) Method and period of amortization of goodwill
Goodwill is amortized in equal amounts over a reasonable period of up to 20 years, based on individual estimatesof the period over which the investment effect will be realized.
(9) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, deposits that can be withdrawn from time to time, and shortterm investments that are easily converted to cash and that mature within three months of the date of acquisition
and are subject to insignificant risk of change in value.
(10) Other important matters for the preparation of consolidated financial statements
i. Application of the consolidated taxation system
The Company and certain domestic subsidiaries apply consolidated tax payment system.
ii. Application of tax effect accounting for the transition from the consolidated taxation system to the group tax
sharing system
The Company and some of its domestic consolidated subsidiaries will shift from the consolidated taxation system
to the group tax sharing system in the next consolidated fiscal year. However, for the transition to the group tax
sharing system established under the “Act for Partial Amendment of the Income Tax Act, etc.” (Law No. 8, 2020)and for items reviewed in the non-consolidated taxation system in conjunction with the transition to the grouptax sharing system, subject to the treatment of paragraph 3 of the “Practical Solution on the Treatment of Tax
Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System”(Practical Issues Task Force No. 39, March 31, 2020), they do not apply the provisions of paragraph 44 of the“Guidance on Accounting Standards for Tax Effect Accounting” (ASBJ Guidance No. 28, February 16, 2018) andcalculate the amount of deferred tax assets and deferred tax liabilities in accordance with the provisions of the
pre-revision tax laws.
From the beginning of the next consolidated fiscal year, they plan to apply the “Practical Solution on the
Accounting and Disclosure Under the Group Tax Sharing System” (Practical Issues Task Force No. 42, August
12, 2021), which sets forth the handling of accounting and disclosure of corporate tax, local corporation tax, andtax effect accounting in case of application of the group tax sharing system.

Change in an Accounting policy
Application of the Accounting Standard for Revenue Recognition
The Company and its subsidiaries have adopted the "Accounting Standard for Revenue Recognition" (ASBJ
Statement No. 29 issued on March 31, 2020, hereinafter referred to as the "Accounting Standard for Revenue
Recognition") from the beginning of the first quarter of the current consolidated fiscal year, and recognized revenue
at the amount expected to be received in exchange for the promised goods or services when the control of the goods
or services is transferred to the customer.
The principal changes resulting from the application of the Accounting Standard for Revenue Recognition are as
follows.

Revenue recognition related to own points
Under the point system operated by certain consolidated subsidiaries, the company previously recorded the amount- 17 -

of expenses expected to arise from the future use of points as a provision for point card certificates and recorded
the amount of the provision as selling, general, and administrative expenses. However, it has changed this method
to identify the points granted as a performance obligation and deduct the amount of the provision from net sales.
As a result, the provision for point card certificates, which was presented as a current liability in the consolidatedbalance sheet of the previous fiscal year, is now included in "other" under current liabilities as a contract liability
from the current consolidated fiscal year.

Revenue recognition related to principal transactions
In the past, the company recognized revenue in the net amount of consideration received from customers less theamount equivalent to commissions paid to department stores, among others in buying sales transactions withdepartment stores and other business partners. However, it has now changed the method to recognize revenue inthe gross amount.

Revenue recognition related to sales with right of return
In sales with the right of return related to certain consolidated subsidiaries, the company previously recognized
the expected loss from future sales returns as a provision for sales returns and recorded the provision for such loss
as the cost of sales. This method was, however, changed to not recognize revenue and cost of sales at the time ofsale in accordance with the provisions regarding variable consideration for goods and products expected to be
returned. As a result, the provision for sales returns, which was presented as a current liability in the consolidatedbalance sheets of the previous fiscal year, is now included in "other" under “current liabilities” as a refund liability
for the consideration for goods and products from the current consolidated fiscal year, and assets recognized as theright to collect goods and products from customers upon settlement of refund liabilities are included in "other"under “current assets” as returned assets.
In accordance with the transitional treatment stipulated in the proviso of Paragraph 84 of the Accounting Standard
for Revenue Recognition, the cumulative effect of the retrospective application of the new accounting policy prior
to the beginning of the current consolidated fiscal year is added to or deducted from retained earnings at the
beginning of the current consolidated fiscal year, and the new accounting policy is applied from the balance at the
beginning of period. However, the new accounting policy was not applied retrospectively to contracts for whichalmost all revenue amounts were recognized based on the previous treatment prior to the beginning of the current
consolidated fiscal year, in accordance with the method prescribed in Paragraph 86 of the Accounting Standard for
Revenue Recognition.
As a consequence, net sales increased by 8,109 million yen; cost of sales increased by 609 million yen; selling,
general, and administrative expenses increased by 7,657 million yen; and operating income, ordinary income, andincome before income taxes each decreased by 157 million yen during the current consolidated fiscal year. Thebalance of the retained earnings at the beginning of the period decreased by 288 million yen. The impact on per
share information is described in the concerning sections.
Due to the application of the Accounting Standard for Revenue Recognition, “notes and accounts receivable trade”
included in “current assets” in the consolidated balance sheet for the previous consolidated fiscal year is included
in “notes receivable trade” and “accounts receivable trade” from the consolidated fiscal year under review.
In the consolidated statement of cash flows for the consolidated fiscal year under review, the income before income
taxes decreased by ¥157 million.
In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Accounting Standard for
Revenue Recognition, no reclassification was made for the previous consolidated fiscal year using the newpresentation method.
In accordance with the transitional treatment set forth in Paragraph 89-3 of the Accounting Standard for Revenue
Recognition, notes related to revenue recognition for the previous consolidated fiscal year are not included.

- 18 -

Application of Accounting Standard for Fair Value Measurement
The Company has decided to apply the "Accounting Standard for Fair Value Measurement" (ASBJ Statement No.
30, July 4, 2019) ("Accounting Standard for Fair Value Measurement") and other accounting standards from the
beginning of the first quarter of the current consolidated fiscal year. The new accounting policy stipulated by the
Accounting Standard for Fair Value Measurement is to be applied prospectively in accordance with the transitional
treatment stipulated in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 442 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). For bonds andother debentures, which were previously regarded as financial instruments whose fair value was extremely difficult
to determine, the acquisition cost was used as the fair value in quarterly consolidated balance sheet amount. As aresult of applying the standard, even if observable inputs were not available, the fair value calculated using
unobservable inputs based on the best available information was used in the quarterly consolidated balance sheet
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
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 financeundertaken 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 asof the end of the previous fiscal year under review were ¥255 million for 545,000 shares. And that as of the endof this fiscal year under review were ¥187 million for 400,000 shares.
iii. Carrying Value of Debt Finance Posted Using the Gross Price Method
As of February 28, 2022: ¥311 million and as of February 28, 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
as funds. Eligible officers receive the Company’s shares equivalent to the points granted in accordance with thelevel of performance achievement, etc., and money equivalent to the amount of the Company’s shares converted
at market value as of the date of retirement (the Company’s shares, etc.), pursuant to the officer stock delivery
regulations. Meanwhile, the timing of receipt of the benefits of the Company’s shares, etc. by eligible officers
shall, in principle, be upon their retirement from office.

- 19 -

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 end of this fiscal year under review.

Group reorganization (absorption-type merger organized by the Company and 14 consolidated subsidiaries)
At a meeting of its Board of Directors held on December 16, 2020, TSI Holdings resolved to undertake areorganization with the aim of integrating each of its apparel operating companies into a single company over thefollowing three stages, with a scheduled completion date of March 1, 2023.
The Board of Directors, at its meeting held on January 14, 2022, partially changed the companies to be merged in
an absorption-type merger with an expected completion date of March 1, 2022.
Absorption-type merger between consolidated subsidiaries on March 1, 2022
Details of the absorption-type merger are indicated in “Notes (related to business combinations)” of theconsolidated financial statements.
As the development of infrastructure and standardization with Jack Clothing Co., Ltd. Arpege Co., Ltd., Star
Joinus Co., Ltd., and And Wonder Co., Ltd., which were planned for the absorption-type merger with TSI Co.,
Ltd. on March 1, 2022, are in delay, the combined companies in the absorption-type merger are partially changed.

- 20 -

Segments of the Company and Related Information
Segment information
1. Overview of reportable segments(1) Method of determining segments
The reportable segments of the TSI Holdings Group are components for which separate financial information isavailable and whose operating results are regularly reviewed by the Board of Directors to make decision about
resource allocation and to assess their performance.
As a holding company, TSI Holdings is responsible for the management of each operating company focusing mainlyon the apparel business as well as the strategic functions of the Group as a whole. Each operating company inturn formulates comprehensive strategies for the apparel brands handled while engaging in business activities.
On this basis, the TSI Holdings Group is comprised of Apparel-Related businesses, a reportable segment, andOther Businesses.

(2) Products and services belonging to each reportable segment
In its Apparel-Related Businesses, the Group mainly engages in the planning, manufacture, and sale of apparelas well as brand licensing, production, and logistics operations. In its Other Businesses, the Group engages insuch activities as the provision of sales agency, temporary staffing, synthetic resin-related, store design andmanagement, restaurant services.
2. Calculation method of net sales, income or losses, assets and other items by reportable segments
The accounting method for the reportable segments is generally the same as the items stated in the “Major notes toconsolidated financial statements.”
The segment income or loss is based on operating income or loss.
The intersegment sales and amount of transfer are based on the prevailing market price.
As described in “Changes in accounting policies,” the Accounting Standard for Revenue Recognition and otheraccounting standards have been applied since the beginning of the consolidated fiscal year under review, and theaccounting method for revenue recognition has been changed. Therefore, the method of calculating the profit or loss
by business segment has been changed accordingly.
Due to the changes, net sales of “apparel-related businesses” for the consolidated fiscal year under review increasedby ¥8,109 million, while segment income decreased by ¥157 million. The impact on “other” is insignificant.

- 21 -

3. Net sales, income or losses, assets and other items by reportable segments
FY2022 (March 1, 2021 to February 28, 2022)
Reportablesegment
Apparel-related
businesses

Other

Adjustments
Note 1,2,4,5

Total(Million yen)
Consolidated
financialstatements
amount(Note 3)

Net sales
Sales to third parties

135,702

4,590

140,29388

140,382

109

666

775

(775)

―

135,8125,256

141,069(687)

140,382

Segment income

4,627

46

4,674

(234)

(4,440)

Segment assets

73,818

7,082

80,90159,539140,440

1,880

203

2,084

1,565

3,650

1,424

216

1,641

1,134

2,776

Inter-segment sales or transfers
Total

Other items
Depreciation and amortization
expenseIncrease in property, plant andequipment and intangible assets
Notes:

1. The segment income adjustment of ¥(234) million is transaction offsets among consolidated companies.
2. The segment assets adjustment of ¥59,539 million includes the Company-wide assets that are not belong torespective reportable segments of ¥64,737 million and elimination of internal transactions between consolidated
companies of ¥(5,197) million.
3. Segment income (loss) is adjusted for operating income listed in the consolidated financial statements.
4. The adjustment of depreciation and amortization of ¥1,565 million is mainly due to the amortization cost of theCompany-wide assets.
5. Adjustment of ¥1,134 million in increase in property, plant and equipment and intangible assets is mostly related
to the Company-wide assets.

- 22 -

FY2023 (March 1, 2022 to February 28, 2023)(Millions of yen)
Consolidated
financial
Adjustments
statements
Note 1, 2, 4, 5amount(Note 3)

Reportablesegment
Other

Apparel-related
businesses

Total

Net sales
Sales to third parties

149,236

5,156

154,393

63

154,456

113

668

781

(781)

―

149,349

5,825

155,175(781)

154,456

Segment income (loss)

4,543

(24)

4,519

(2,189)2,329

Segment assets

76,484

6,124

82,60952,818135,427

1,812

199

2,011

1,496

3,508

1,853

308

2,161

2,367

4,528

Inter-segment sales or transfers
Total

Other items
Depreciation and amortization
expenseIncrease in property, plant andequipment and intangible assets
Notes:

1. Segment income (loss) adjustment of ¥(2,189) million is due to company-wide expenses of ¥4,323 million not
attributable to any business segment and elimination of internal transactions among consolidated companies of¥2,452 million.
2. The segment assets adjustment of ¥52,818 million includes the Company-wide assets that are not belong torespective reportable segments of ¥59,965 million and elimination of internal transactions between consolidated
companies of ¥(7,147) million.
3. Segment loss is adjusted to operating loss listed in the consolidated financial statements.
4. The adjustment of depreciation and amortization of ¥1,496 million is mainly due to the amortization cost of theCompany-wide assets.
5. Adjustment of ¥2,367 million in increase in property, plant and equipment and intangible assets is mostly related
to the Company-wide assets.

Per Share Information(Yen)
FY2022(March 1, 2021 to February 28, 2022)

FY2023(March 1, 2022 to February 28, 2023)

Net assets per share

1,075.44

1,168.69

Net income per share

11.32

35.21

Notes:
1. Data on diluted earnings per share is not presented since there were no potential shares with a dilutive effect.
2. With the Company’s shares held by the trust-type employee stock ownership plan (ESOP) treated as treasury stock,
the number of such shares is deducted from the number of shares issued as of the end of the fiscal year in thecalculation of net assets per share. The number of shares of treasury stock held by the Trust at the end of theprevious fiscal year was 545 thousand shares, and the number of shares of treasury stock held by the Trust at theend of the current fiscal year was 400 thousand shares.
3. With the Company’s shares held by the trust-type employee stock ownership plan (ESOP) treated as treasury stock,
the number of such shares is deducted from the average number of shares for the period in the calculation of net
income per share. Meanwhile, the average number of shares held by the Trust during the previous fiscal year was- 23 -

626,000 shares and 470,000 shares during the fiscal year under review.
4. With the Company’s shares held by the Board Benefit Trust (BBT) treated as treasury stock, the number of suchshares is deducted from the number of shares issued as of the end of the fiscal year in the calculation of net assets
per share. Meanwhile, the number of treasury stock held by the Trust as of the end of the previous fiscal year was
496,000 shares and 496,000 shares as of the end of the fiscal year under review.
5. With the Company’s shares held by the Board Benefit Trust (BBT) treated as treasury stock, the number of suchshares is deducted from the average number of shares for the period in the calculation of net income per share.
Meanwhile, the average number of shares held by the Trust during the previous fiscal year was 503,000 sharesand 496,000 shares during the fiscal year under review.
6. The Accounting Standard for Revenue Recognition and other accounting standards are applied as described in“Changes in accounting policies.” Consequently, net assets per share and net income per share for the consolidated
fiscal year under review decreased by ¥5.30 and ¥1.81, respectively.
7. The basis for calculating net income per share is as follows.
FY2022(March 1, 2021 to
February 29, 2022)
Net income attributable to owners of parent(Million yen)

FY2023(March 1, 2022 toFebruary 28, 2023)

1,022

3,063

Amount not attributable to shareholders on common
stock (Million yen)――

Net income attributable to owners of parent on common
stock (Million yen)

1,022

3,063

Average number of shares of common stock during theperiod (Shares)

90,30686,994

Important Subsequent EventsNone- 24 -