Results Briefing: Q1ST (March to May 2021)Resultsof 2022 Ending Feb.

5th July, 2021

1

Market Trends for Q1ST Results of 2022 Ending Feb.

Market movements are still unclear.
Amidst the prolonged Covid-19 pandemic, risks, such as states of emergency and store
closures/shortening of open hours, could yet directly impact business performance

Prospects for a gradual market recovery
Nevertheless, the effects of various measures, including the commencement of inoculation, areexpected, and the economy will recover from here on.
Yet, the speed of recovery will be gradual in the apparel industry and severe environment willcontinue for a while.

Our strategy
Existing management approach of just waiting the situation leads to further predicament. With
this in mind, we will keep on creating a business foundation and challenging new businesses.

2

Covid-19 Impact on Q1ST Results of 2022 Ending Feb.

March results were strong. After April, the effects of Covid-19 infections expanded. It gave a big impact on ourmanagement such as over 300 stores(about 30% of all stores) forced to close and most of the stores had to shorten
business hours because we open stores mainly in metropolitan areas.
Nationwide Numbers of Covid-19 Infections
8,000

April 25, 2021
State of emergency declared in Tokyo,
Osaka, Hyogo and Kyoto

Q1ST(March to May)

April 5, 2021
* Thereafter, areas added in stages
Application of selective measures,such as preventing spread, in Osaka,
Hyogo and Miyagi

6,000* Thereafter, areas added in stages.

March 22, 2021
Met Area (Met area plus 3
prefectures) State of
emergency lifted

4,000

2,000

0
2月15日
February 15.
2021
2021年

3月
March

4月
April
March

5月
May

6月
June

April 25: Emergency declared in Tokyo, Osaka, Hyogo and Kyoto  Some 30% of apparel stores closed across JapanMay 12: Aichi and Fukuoka prefectures added to state of emergency
May 16: Hokkaido, Okayama and Hiroshima prefectures added to state of emergency
May 23: Okinawa prefecture added to state of emergency
 Some 10% of stores closed on weekdays, and some 20% closed on weekends

3Standing position of TIP24※ on Q1ST Results of 2022 Ending Feb.
We will not stagnate, but instead continue to confront our

What should we be doing and whereshould we be going right now ?

challenges in order to create new value that will bring future
happiness to our stakeholders.
The happiest
fashioncompanyin the world

In order to keep on changing and become a profitablebusiness entity, we have pushed ahead with reforms, boththoroughly and carefully in Q1.

2023
Organizational integration
1st Phase completed

2022

2021

Growth and leap forward
Brands that can take on the world andspread into neighboring regions

2020
Painful innovation

Investment in the future
Setup that nurtures personnel and business, EC, digital shift andfresh investment

Withdrawing from businesses, closing stores, reducing
labor costs…

※ TIP24（TSI Innovation Program 2024) is a name of in-house program in regard to structural reform and future strategy started from 2022 Ending Feb.

AGENDA

1

Results Overview

2

About Business Situation in Q1ST

3

About Business Situation by Channel

4

About Initiatives Related to Environmental Issues

5

About Balance Sheet and Future Investment Strategy

6

About Full-year Forecast

7

Reference Data

1

Results Overview

6Highlights of Results for Q1 of Fiscal Year Ending in February 2022
Under the current severe market conditions, we will make thorough withdrawals from business,and cut labor costs and selling and administration expenses (SG&A). Accumulation of detailed
actions gave us to reach net sales of YoY 157.8% and operating profit of 2.27 billion yen.

Net Sales

Operating Profit

Quarterly Net Income

34.21Billion Yen

2.27Billion Yen

2.43 Billion Yen

compared to year before last 118.8%

compared to year before last 98.3%

YoY Change +8.71 billion yen

YoY Change +12.88 billion yen

YoY 157.8%

compared to year before last 79.8%
YoY Change +12.53 billion yen

7Operating Profit Transition of 2022 Ending Feb.
What with the organizational efficiency by structural reform and whatwith the refinement of management control, the earnings improved.
The operating performance has reached the highest profit in the last 5
years.
Unit : Billion Yen> Operating Profit
Operating profit has reached 2.27 billion yen, aprofit ratio of 6.6％
against the plan of operating profit was 1.8 billion yen, a profit
ratio of 4.8%.

> Major Factors❶ Expansion of strong business such as golf,
athleisure and street casual.
❷ Improvement of past year inventory→reduction of inventory while maintaining
yield.

Q1ST
2018 Ending Feb.

Q1ST
2019 Ending Feb.

Q1ST
2020 Ending Feb.
Operating
Profit

Q1ST
2021 Ending Feb.
Operating Profit
MarginQ1ST2022 Ending Feb.

❸ Suppression of purchasing and reductionof SG&A.

8

Gross Profit/SG&A Expenses for Q1ST Results of 2022 Ending Feb.
Unit : Billion Yen

Gross Profit

19.14Billion Yen
YoY 211.4%
compared to year before last
77.8%

Gross Profit
275

57.6%
56.6%

60.0%

57.4%

56.0%

225
175

56.0%

22.4
224

125
75

YoY Change +10.08 billion yen

22.2
222

54.0%

246
24.6
91
0.91

16.87Billion Yen
YoY 108.8%
compared to year before last
74.3%
YoY Change +13.6 billion yen

240
230
220
210
200
190
180
170
160
150

191
19.1

Q1ST
Q1ST
Q1ST
Q1ST
Q1ST
2022 Ending
18年2月期2019 Ending 20年2月期
2020 Ending 21年2月期
2021 Ending 22年2月期
2018 Ending 19年2月期
Feb.
Feb.
Feb.
Feb.
Feb.
売上総利益
売上総利益率Gross Profit
Gross Profit Margin

SG&A Expenses

SG&A Expenses

58.0%

53.8%

52.0%
50.0%

the previous quarter.
• We promoted the sale of products which was lost sales
opportunities in the previous fiscal year at a fixed price.
• Inventory digestibility was improved owing to sales withproper yield.

year.

55.0%
54.0%

53.2%

• Purchasing was suppressed to about 82% compared to⇒10 billion yen has improved compared to lastUnit : Billion Yen

52.9%> Gross Profit> SG&A Expenses• Unprofitable businesses were withdrawn on the basis of
structural reforms.

53.0%

49.3% 52.0%
20.7
207

211
21.1

227
22.7

15.5
155
Q1ST

Q1ST

Q1ST

Q1ST

16.8
168
Q1ST

2022 Ending
2019 Ending
2020 Ending
2021 Ending
2018 Ending
18年2月期19年2月期20年2月期21年2月期22年2月期
Feb.
Feb.
Feb.
Feb.
Feb.

SG&A
販管費

販管費率
SG&A

Expenses

Expenses Rate

• We reduced fixed costs and reviewed variable costs.

51.0%→Thorough cost reduction

50.0%• Bonuses were cut in proportion to the last business

49.0%
48.0%

performance.

⇒5.9billion has improved compared to year
before last.

9

Net Income Impact Items for Q1ST Results of 2022Ending Feb.
Non-operating income is 0.45 billion yen due to foreign exchange gains, dividend income, real estate income and others.
As extraordinary income, fair sale of securities and gain on sale of businesses are 0.51 billion yen, whereas Covid-19 impact causing
loss due to temporary closing is 0.59 billion yen, but quarterly net income is 2.43 billion yen, amounting to a profit margin of 7.1%.

Unit : Billion Yen

Operating Profit

・Gain on sale of investment securities 0.33
・Gain on sale of subsidiary 0.08

2.27Billion Yen
compared to year before
last 118.8%
YoY Change +8.71 billion yen

-0.15
0.45

Quarterly Net Income

2.43Billion Yen
compared to year before
last 98.3%
YoY Change +12.88 billion yen

Loss due to
Covid-19

・Foreign exchange income 0.15
・Dividend income 0.12
・Real estate income 0.04

2.27
Operating profit
margin
6.6%

Operatingincome・Rental expenses
on real estate 0.06
・Interest expenses

0.51

-0.59
-0.07
・Loss due to temporary
closing 0.57

2.43

0.03

Net profit
margin7.1%

Non-operating
Non-operating
incomeexpenses
Ordinary Income

Extraordinary
Extraordinary
incomelossesProfit Before Taxes

Income taxes
Net income attributable todeferredowners of parent
Profit Attributable to Owners of Parent

2.57

2.49

2.43

2

About Business Situation in Q1ST

11

Operating income Revenue structure by segment for Q1ST Results of 2022 Ending Feb.
Strong brands such as golf, athleisure and street-casual drove profits.
Conversely, brands with a focus on occasion demand and brands which located in metropolitan area
continued to be sluggish.
Against Plan
(Change)

Results

Net Sales 13.86 Billion Yen +1.45 Billion Yen
Operating Income

2.04 Billion Yen+1.41 Billion Yen
Against Plan
(Change)

Results

Net Sales 12.62 Billion Yen -3.88 Billion Yen
Operating Income-

0.36 Billion Yen-

1.08 Billion Yen※ These data are based on excerpting some of our main businesses.

Strong businesses are pillars of profit.

12

Initiatives in Strong Business Domains of Golf, Athleisure and Street

The brands with uniqueness and high customer engagement were very strong. Sales of 3 brands havegrown significantly compared to the year before last and drove profits.

The number of new customers increased owing toregular content transmission and strength of products.

4,000

3,500

Collaboration with artists and game character that had
a high affinity enabled HUF to play an active role acrossgenres.

3.92

Net Sales

Unit : Billion Yen
3.26
3.07

Net Sales
1,500

1,400

1,400

1,300

1,200

1.13

2,500

1.08

1,000

2019年2月期
2019 EndingFeb.

2020年2月期
2020 EndingFeb.

2021年2月期
2021 Ending
Feb.

0.90

1,000

1,500

2022 Ending
2022年2月期
Feb.

1.13

1,100

1,100

1.91

1.28

1,200

1,300

2,000

Net Sales

1.49

1,600

3,000

Collaboration products with NIKE and original ones
have increased the value of the brand.

900

900

800

800

700

2019年2月期
2019 EndingFeb.

2020年2月期
2020 EndingFeb.

2021年2月期
2021 EndingFeb.

2022年2月期
2022 Ending
Feb.

0.85

0.85
2019 Ending
2019年2月期
Feb.

2020 Ending
2020年2月期
Feb.

2021 Ending
2021年2月期
Feb.

2022 Ending
2022年2月期
Feb.

13Innovative Initiatives in Other Domains
We will send out new customer value without stagnating by creating new brands
and fusing music, art and culture.

Exhibition to mark 50th anniversary

TV CM of “Nozomi Iijima x Haramichan” shown for the first time

The exhibition that looks back on the firm
trajectory of manufacturing for 50 years.
It was exhibited a wealth of materials thatwere rarely published with MARGARETHOWELL’s own comment.

New brand named “hueLe Museum”
started on this March made TV CM for the
first time.
A unique collaboration between Nozomi
Iijima who is a world-class ballet dancerand Harami-chan of a pop pianist got a
hot topic.

Debut of new brand [mag.by.c]
New store brand has launched.
It proposes items that can be afavorite in customer's wardrobe
without being too caught up in
trends.

3

About Business Situation by Channel

Sale Trends by Channel for Q1ST Results of 2022 Ending Feb.

15

While shrinking compared to year before last, 9.6% of domestic business came from department stores and 41.8% from nondepartment stores (flagship shops and street-level stores), whereas EC channels and non-apparel products found solidity.
Meanwhile, in overseas business, sales in the USA and Europe compensated for withdrawals and shifted to a regrowth phase.

Department
StoresDo
mestic

Cumulative Q1ST
2020 Ending Feb.

Cumulative Q1ST
2021 Ending Feb.

Cumulative Q1ST
2022 Ending Feb.

6.02 Billion Yen

1.75 Billion Yen

3.30 Billion Yen(Composition Rate (%)：14.0)(Composition Rate (%) ：8.1)

Composition Rate (%) ：9.6

Commercial
Facilities(*1)

22.51 Billion Yen

7.03 Billion Yen

14.31 Billion Yen(Composition Rate (%) ：52.5)(Composition Rate (%) ：32.4)

Composition Rate (%)：41.8

E-Commerce

7.95 Billion Yen

9.18 Billion Yen

9.48 Billion Yen(Domestic E-Commerce ratio(％)：21.8)(Domestic E-Commerce ratio(％)：51.1)

Domestic E-Commerce ratio(％)：
35.0

4.22 Billion Yen

2.51 Billion Yen(Composition Rate (%) ：9.8)(Composition Rate (%) ：11.6)

4.93 Billion Yen
Composition Rate (%) ：14.4

2.18 Billion Yen

1.21 Billion Yen

2.19 Billion Yen(Composition Rate (%) ：5.6)

Composition Rate (%) ：6.4

Domestic
Others(*2)

Overseas(*3)(Composition Rate (%) ：5.1)

Growth by channel
compared to year
before last (%)

YoY (%)

54.8

188.3

63.6

203.3

119.3

103.3

116.9

196.6

100.3

181.2

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

E-commerce in Q1ST Results of 2022 Ending Feb.

16

In EC business, we focused on EC sales to take growth to 205.9% compared to year before last.
Overseas EC is charging hard thanks to “TACTICS” in USA and “MARGARET HOWELL” in Europe predicting that the battle
on Covid-19 is being won.
For the first time in Q1, EC sales exceeded 10 billion yen.
Cumulative Q1ST 2022
Ending Feb.

compared to year
before last (%)

9.18 Billion Yen

9.48 Billion Yen(21.8)(51.1)

103.3(35.0)

119.3

In-house EC(ratio(％))

2.16 Billion Yen

3.89 Billion Yen

4.44 Billion Yen(27.1)(42.3)(46.8)

205.9

114.3

Overseas E-Commerce(ratio(％)) ※２

0.11 Billion Yen

0.19 Billion Yen

0.86 Billion Yen(5.1)(16.0)(39.4)

769.6

446.6

E-Commerce TOTAL(ratio(％))※１

8.06 Billion Yen

9.37 Billion Yen

10.35 Billion Yen(20.9)(48.9)(35.3)

128.4

110.4

Domestic E-Commerce(ratio(％)) ※１※１※２

Cumulative Q1ST
2020 Ending Feb.

Cumulative Q1ST
2021 Ending Feb.

7.95 Billion Yen(+13.2pt)(+19.7pt)(+34.3pt)(+14.5pt)

YoY (%)(-16.1pt)(＋4.5pt)(+23.4pt)(-13.6pt)

Domestic E-Commerce ratio excluding domestic and other sales (wholesale, company sales, etc.)
Results of Efuego Corp. which operates EC sites centering on Tactics.com in the U.S. is to be consolidated from the second quarter of 2021 and onward. The results are recordedin overseas sales.

17Strengthening Approaches to New Hands-on
Experiences, Services & OMO
Benefits and improvements fromdigitalizing the work of shop staff

Strengthening staff coordination content

You can always meet the staff you want to.
The number of posts and contents is up 311% compared
to Q4 of previous FY – so, next, we will strengthen oursales platform.

Expansion of online customer service
You can consult anytime, anywhere.
CVR via online customer service isabout 30 times more than
Normal EC.
Depending on the brand,
it accounts for 15% of our EC
sales.

18

Strengthening Approaches to New Hands-on
Experiences, Services & OMO

nano universe's style of DX efforts
Store evolution by utilizing digital.

Scoring Ability of Shop Staff

Directing customers from EC to stores and strengthening engagement
Select fitting item
Select store and date and time

You canselectmultipleproducts.

We are scoring staff ability in order to be able to give
guidance to staff to help them develop. In this way, we
will bring about change in the behavior of shop staff.

It’s a service that reserves fittings at stores on EC.
55% of customers who applied for the fitting reservation
service actually got customer service at the store.
80% of those customers bought after trying it on.

4 About Initiatives Related to Environmental Issues

20

Solving Societal Issues Via Environmentally Friendly Initiatives
Solving problems with fashion and technology
Developing products that benefit both the environment and customers

Proposing ethical fashion using digital technology

Challenge to control global warming“FLOML” collaborates with Shimaai Farm on Ishigaki-jima island tocome up with ideas on natural plant dyeing, on the assumption thatdesigns will be re-dyed after a few years.
By using 3D data images when selling it, processes such as sample
production are minimized. The sales method is also eco-friendly.

Collaboration between “SONY” and “PEARLY GATES”
PEARLY GATES released a product compatible with the wearable
thermo device "REON POCKET 2" from July 1st.
By eliminating waste of air conditioning energy, we will help global
warming.

Orders received by “CLO” 3D data

21

Solving Societal Issues Via Environmentally Friendly Initiatives
Creator's responsibility
Reborn what is thrown away for future global environment.

Reusing waste ingredients for fashion“Human woman” uses FOOD TEXTILE of natural dyes thatare made from thrown away ingredients, such as vegetablescraps.

Environmentally Friendly Initiatives
Improvement of soil and water quality

The 100% cotton items in the “NATURAL BEAUTY BASIC”
lineup have been changed to organic cotton 28 productnumber, switching over 30% of cut & sewn garments.

22

Solving Societal Issues Via Environmentally Friendly Initiatives
Aiming to reduce CO2 throughout the supply chain
Formed a sustainable project team, we will do our utmost to improve theinternal environment that supports our business.
Reduction of plastic by reusing hangers
Promoting zero emission of 5 million hangers fordeliverySending
products
throughlogistics
centerTSIStores

Factory

Collecting
hangers
after stores
received
products

FYS
Delivering hangers
to the factory or
Inspection center

Unified to FYS hangers
that have obtained
wide-area certification
for industrial waste
treatment by the
Ministry of theEnvironment.
Collected from storesnationwide, sorted,
cleaned and reused.

Reducing CO2 by Material rationalization
Reduced the number of delivery
cardboard models from 33 to 15
Strengthened corporate
branding by making
cardboard for the TSI entire
group.
Achieved reduction ofenvironmental load byconsolidating the number ofmodels at the same time.

About Balance Sheet and Future Investment
5 Strategy

24

Balance sheet and Future Investment Strategies

The financial situation continues to be sound.
By activating investment in digital transformation (DX) infrastructure and> Cash & Deposits

new areas of business development, we will make effective use of funds .
Unit:Million Yen
Cumulative Q1ST 2021
Ending Feb.
Results
Current Assets

Composition
Rate (%)

FY Ending Feb. 2021

Results

Composition
Rate (%)

Cumulative Q1ST 2022 Ending Feb.

Results

Composition

Y/Y

Rate (%)

ChangeY/Y (%)

Q1/Q4

Q1/Q4 (%)

Change・30 to 35 billion yen, which is the appropriate level of cashon hand under the corona wreck has been properly
secured, so we will identify areas of market growth andinvest.
※ The reason why cash and deposits decreased is mainly
due to payment of corporate tax of 2 billion yen andrepayment of long-term borrowings of 1.7 billion yen.

67,86543.2

82,71453.4

76,430

51.5

8,565

112.6

-6,284

92.4(of Cash and Deposits)

25,681

16.3

49,871

32.2

42,81728.9

17,136

166.7-7,05485.9(of which, Inventory)

27,15917.3

18,40011.9

18,79312.7-8,366

69.2

393

102.1

89,27856.8

72,237

46.6

71,89948.5-17,379

80.5

-338

99.5

(of Investment Securities)

25,72416.4

28,87318.6

29,440

19.8

3,716

114.4

567

102.0

(of Investment Real estate)

16,587

10.6

4,980

3.2

4,974

3.4

-11,613

30.0

-6

99.9

157,143

100.0

154,951100.0

148,329100.0-8,814

94.4-6,622

95.7

46,22329.4

35,97023.2

28,35719.1-17,866

61.3-7,61378.8(of Short-term borrowings)

14,595

9.3

152

0.1

153

0.1

-14,442

1.0

1

100.5

(of Current portion of long-term borrowings)

8,878

5.6

8,915

5.8

8,699

5.9

-179

98.0

-216

97.6

29,577

18.8

21,551

13.9

19,62413.2-9,953

66.3-1,92791.1

23,046

14.7

16,082

10.4

14,3909.7-8,65662.4-1,692

89.5

Total Liabilities

75,79948.2

57,52137.1

47,981

32.3-27,81963.3-9,54083.4> Capital adequacy ratio

Total Net Assets

81,34451.8

97,43062.9

100,34867.7

19,004

123.4

2,918

103.0

・ Capital adequacy ratio of 67％

157,143

100.0

154,951100.0

148,329100.0-8,814

94.4-6,622

95.7

Non-current Assets

Total Assets
Current Liabilities

Non-current Liabilities(of Long-term borrowings)

Total Liabilities and Net Assets> Inventory• By prioritizing the digestion of inventories from previous years,
purchasing was curtailed and inventories were significantly
reduced.
• Inventories were suppressed to about 69.2% compared to theprevious quarter and improved 8.3 billion yen.

> Loans
We will maintain the short-term line of credit of 15 billion yen
as unused balance.

25

About Investment Strategy from Here on [Innovation of Earning Power]
Strengthen SCM and CRM through digital investment.
We will increase profitability to deal with discontinuous markets.

Centralized inventory
Started system renovation to unify inventory
data that was previously separated by channel.
Reducing lost sales opportunities by
centralizing inventory.

Store inventory

Directly from the store
Renewed thinking of logistics in line withcentralized inventory.
Reducing distribution costs by building asystem that allows direct delivery fromproduction bases to stores.

Started CRM integration.
Strategies to increase membership acquisitionand customer engagement by leveraging theadvantage of scale will improve LTV.

Current
statusA BrandIn-house EC
inventory

3rd P
inventory

CRM integration

Centralized
management of all
inventory dataFrom
now onC BrandTSICommon&B Brand

D Brand26

Investment Strategy from Here on [Innovation of Earning Power]

Rethinking Global Strategy
Due to the influence of Covid-19, globalization
was suddenly braked.

We will revise the strategy to be globally accepted and try it again.

USA• Rebuilding “HUF” USA• Expansion of EC in USA by utilizing “Tactics”.
• Golf brand plans to open a store in Hawaii and expand wholesale in USA.

As some overseas countries are getting theglimpse of after-corona mood, We will review
our global strategy again.

UK & EU

Overseas Sales

CHINA

Sales for the last 3 years have grown steadily due
to the effects of M&A.

9.9
Billion

8.5

8.7

2020
20年2月期

2021
21年2月期Ending
実績
Feb.

Ending
実績
Feb.

Budget trends are going well.

Yen

ASEAN

22年2月期
Budgetof 2022
予算
EndingFeb.

KOREA• Re-growth of “MARGARET HOWELL”• “and wander”’s expansion of wholesale and crossborder EC• Changing functions of subsidiaries on EC andprocurement• Rethinking strategy of “AVIREX” and “Arpege” inShanghai• Considering expanding in China into “HUF” byapplying “TACTICS” business model• Considering expanding in Asia into “Urth Caffé”.
• Considering expanding in China into “Laline”.
• Rethinking strategy in ASEAN owing to withdrawal of
TSI-ASIA .

• Business expansion of “MARGARET HOWELL” (MHL)6

About Full-year Forecast

28

Sales Performance and Forecast for Future
As the state of emergency remained in place longer than expected, the sales forecast
for the first half of the FY is down from 87.1% to 80.8% compared to year before last.
Nevertheless, Q1 got off to a good start thanks to the improvement in gross profit
margin and restraint in SG&A expenses. Hence, we expect to achieve operating profit in
the first half of the FY.
Net Sales（VS FY Ending Feb. 2020）[%](compared to year before last)
Operating Income[Billion Yen]

■ Changes in FY Ending Feb. 2022

100.0%

89.6％

60

Cumulative Q1ST 2022
Ending Feb.
95.0%

Disclosure budget line of FY
Ending Feb. 2022

50

90.0%

40

1St Half
87.1%

85.0%

80.0%

75.0%

Full-year sales budget

Achievements andfuture forecast lines

70.0%

compared to year before last

1St Half

2Nd Half

80.8%

91.1%

（YoY 117.6%）（YoY 104.2%）

Operating Income

30

20

10

1.6

Operating Income

0

-0.5
65.0%

-10

Feb.
2021

1St Half
Mar-Aug 2021

August2Nd Half
Sep 2021～Feb 2022

Full-year sales forecast

Feb.
2022

86.6％
YoY 109.8%
Full-year operating income
budget1.1Billion Yen

29

Expectation for First Half of FY Ending Feb. 2022
Q2 tends to spit out profits since it is mainly discount-season and off-season.
Though we are supposed to make a complete transition to a profitable business model,it will take more times.
Therefore, we expect an operating income budget of -500 million yen in the first half by conducting the same polite
management as in Q1

Q1 Budget

Q1 Results

First Half Expectation

Net Sales

37.00 Billion Yen

34.21 Billion Yen

71.30 Billion Yen

GrossProfit21.00 Billion Yen

19.14 Billion Yen

38.00 Billion Yen(Composition ratio: 55.9%)(Composition ratio: 56.0%)(Composition ratio: 53.3%)

19.20 Billion Yen

16.87 Billion Yen

38.50 Billion Yen(Composition ratio: 51.1%)(Composition ratio: 49.3%)(Composition ratio: 54.0%)

2.27 Billion Yen-0.50 Billion Yen(Profit margin: 6.6%)(Profit margin: -%)SG&A
Expenses

Operating
Profit1.80 Billion Yen(Profit margin: 4.8%)

30

Our WILL

We will improve the soundness of the businesswith a precise management controlling.

Besides, we wil achieve advanced businessthrough supply chain reform, digital store

development, new services, new content
development, etc.

We will start activities to create new businesses without staying in this market.

Striving to be thehappiest fashion company
in the world.
Becoming a company that createshappiness for our shareholders,customers, society and employees.

7

Reference Data

33

Highlights of Q1 Results for FY Ending Feb. 2022
Unit:Million Yen

Overview
Q1ST 2021 Ending Feb.
Results

Composition
Rate (%)

Q1ST 2022 Ending Feb.
Results

Composition

Y/Y

Rate (%)

ChangeY/Y (%)Net Sales

21,682100.0

34,215100.0

12,532157.8

Gross Profit

9,058

41.8

19,14556.0

10,087

211.4

SG&A Expenses

15,504

71.5

16,872

49.3

1,368

108.8

14,54567.1

15,950

46.6

1,404

109.7

Goodwill Amortization

192

0.9

194

0.6

2

101.3

Depreciation and Amortization

766

3.5

727

2.1

-38

94.9

Operating Income-6,445

-29.7

2,273

6.6

8,718

-

Ordinary Income-6,094

-28.1

2,578

7.5

8,672

-

67

0.3

514

1.5

447

761.6

Extraordinary Loss

3,320

15.3

597

1.7

-2,722

18.0

Profit Before Taxes-9,346

-43.1

2,495

7.3

11,842-

Profit Attributable to Owners of Parent-10,454

-48.2

2,431

7.1

12,885-

EBITDA ※-5,486

-25.3

3,195

9.3

8,682

-

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

Extraordinary Income*EBITDA＝Operating Income + Goodwill Amortization + Depreciation and Amortization

34

Highlights of Q1 Results for FY Ending Feb. 2022

Net Sales
Per Channel

Cumulative Q1ST 2021
Ending Feb.

Cumulative Q1ST 2022 Ending Feb.

Results

Composition

Results(Million yen)

Rate (%)(Million yen)

Y/Y (%)

Composition

Co mpo si ti o nRate (%)

Rate Y/Y
ChangeDepartment Stores

1,752

8.1

3,299

188.3

9.6

1.6

Commercial Facilities(*1)

7,033

32.4

14,311

203.5

41.8

9.4

In-house EC

3,886

17.9

4,442

114.3

13.0

-4.9

3rd Party

5,295

24.4

5,042

95.2

14.7

-9.7

E-Commerce

9,181

42.3

9,484

103.3

27.7

-14.6

Others(*2)

2,508

11.6

4,931

196.6

14.4

2.8

Domestic

20,47494.4

32,027

156.4

93.6

-0.8

E-Commerce

193

0.9

862

446.4

2.5

1.6

Overseas(*3)

1,207

5.6

2,187

181.2

6.4

0.8

9,374

43.2

10,347

110.4

30.2

-13.0

21,682100.0

34,215

157.8

100.0

-

E-Commerce TOTAL
TOTAL*1 Fashion buildings, shopping centers, railroad station buildings, individual stores, outlet shops etc. except for department stores.
*2 Apparel businesses such as wholesale, intercompany sales and non-apparel businesses of the group companies.
*3 Results of Efuego Corp. which operates EC sites centering on Tactics.com in the U.S. is to be consolidated from the second

quarter of 2021 and onward. The results are recorded in overseas sales.

35

Highlights of Q1 Results for FY Ending Feb. 2022
Unit:Million Yen

Brands Overview

Cumulative Q1ST 2021 Ending Feb.

Sales

Composition

Gross Profit

Rate (%)

Ratio (%)

Y/Y

Cumulative Q1ST 2022 Ending Feb.

Sales

Composition

Gross Profit

Rate (%)

Ratio (%)

Sales (%)

Gross Profit
Ratio (pt)1.

nano・universe

3,188

14.7

40.6

3,945

11.5

54.7

123.8

+14.1pt

2.

PEARLY GATES

1,911

8.8

40.5

3,920

11.5

62.4

205.2

+21.9pt3.

NATURAL BEAUTY BASIC

2,031

9.4

34.0

2,777

8.1

63.3

136.7

+29.2pt

4.

MARGARET HOWELL

1,269

5.9

53.4

2,590

7.6

65.8

204.0

+12.4pt

5.

HUF

901

4.2

43.6

1,485

4.3

48.1

164.7

+4.5pt6.

AVIREX

892

4.1

56.3

1,302

3.8

62.7

146.0

+6.4pt7.

UNDEFEATED

854

3.9

37.9

1,283

3.7

42.9

150.2

+5.1pt8.

STUSSY

707

3.3

60.3

997

2.9

68.4

140.9

+8.1pt9.

PROPORTION BODY DRESSING

680

3.1

50.7

860

2.5

64.0

126.5

+13.3pt

10.

ROSE BUD

627

2.9

39.4

826

2.4

48.3

131.7

+8.9ptTOP10

13,06460.3

43.5

19,989

58.4

58.9

153.0

+15.4pt

Other Brands

7,911

36.5

40.5

14,196

41.5

52.1

179.4

+11.6pt

Continuing Brands

20,976

96.7

42.4

34,186

99.9

55.9

163.0

+13.5pt

705

3.3

24.5

28

0.1

133.6

4.1

+109.1pt

21,682

100.0

41.8

34,215

100.0

56.0

157.8

+14.2pt

Closed Brands
TOTAL

36

Highlights of Q1 Results for FY Ending Feb. 2022

Domestic Monthly Sales Information
Q1ST 2021 Ending Feb.
All Stores：48.7％
Existing Stores：78.7％

Q1ST 2022 Ending Feb.
All Stores：149.2％
Existing Stores：108.0％

37Highlights of Q1 Results for FY Ending Feb. 2022

The Number of Stores

ApparelCumulative Q1STFY Ending Feb.

Store

Store

Cumulative Q1ST

Y/Y

Q1/Q4

2021 Ending Feb.

2021

Open

Close

2022 Ending Feb.

ChangeChangeDomestic

1,000

872

+13

-13

872

-128

-

Overseas

73

52

-

-3

49

-24

-3

1,073

924

+13

-16

921

-152

-3

Total
Restaurant

Domestic

9

9

-

-

9

-

-

Cosmetics

Domestic

27

33

+4

-5

32

+5

-1

1,109

966

+17

-21

962

-147

-4

Total

38

Highlights of Q1 Results for FY Ending Feb. 2022

1st Half and 2nd Half Profit and Loss Plan

1st Half Plan

2nd Half Plan

71.30 Billion Yen

81.10 Billion Yen(YoY:126.7%)(YoY:104.2%)

38.50 Billion Yen

41.40 Billion Yen

79.90 Billion Yen(Composition ratio:54.0%)(Composition ratio:51.0%)(Composition ratio: 52.4%)

Operating
Income-0.50 Billion Yen

1.60 Billion Yen

1.10 Billion Yen(Profit margin: -%)(Profit margin: 2.0%)(Profit margin: 0.7%)

Current Net
Income0.17 Billion Yen

1.49 Billion Yen

1.66 Billion Yen(Profit margin: 0.2%)(Profit margin: 1.8%)(Profit margin: 1.1%)

Net Sales

SG&A
Expenses

Full-year Plan

152.40 Billion Yen(YoY:113.7%)

Descriptions about future within this document are based on the information that the company obtains on the date of this report andcertain assumptions deemed to be reasonable. Actual earnings may differ materially from various future factors.