第1四半期決算説明会 決算説明会資料｜投資家情報 | TSI HOLDINGS

Announcement of Financial Results for the 1st Quarter

Announcement of Financial Results for the 1st Quarter

of the Fiscal Year Ending February 28, 2013 (FY2012)

of the Fiscal Year Ending February 28, 2013 (FY2012)

I. Summary of Financial Results for the 1st Quarter of

I. Summary of Financial Results for the 1st Quarter of

the Fiscal Year Ending February 28, 2013 (FY2012)

the Fiscal Year Ending February 28, 2013 (FY2012)

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1. Consolidated Financial Highlights - Profit and Loss

Net Sales

47,529 million yen

(Y/Y 123.1%)

, Operating Income 1,449 million yen

(Y/Y Change +1,806 million yen)

(millions of yen)

Previous FY *

1st Quarter, FY2012

Results

% of Total

Results

% of Total

_Y/Y

Net Sales

38,625 100.0%

47,529

100.0%

+8,903 123.1%

Gross Profit

20,095

52.0%

25,926

54.5%

+5,831 129.0%

SG&A Expenses

20,452

53.0%

24,477

51.5%

+4,024 119.7%

Operating Income

-357

-0.9%

1,449

3.0%

+1,806

─

Ordinary Income

_-1,064

_-2.8%

₈₉₃

_1.9%

_+1,958

─

Income Before Income

Taxes (Qtr)

-2,745

-7.1%

530

1.1%

+3,275

─

Net Income (Qtr)

-3,517

-9.1%

-3

0.0%

+3,513

─

2. Consolidated Financial Highlights - Group (1)



Net Sales: Massive increase of Y/Y 147.5% due to the increase in the revenue of subsidiaries and

because companies that merged during the previous fiscal year gave contributions through the full

business year.



Gross Profit Ratio (Non-consolidated): Previous fiscal year: 30.5%

→

Current year: 40.3% (+9.7pt); due

to the reduction of BOY inventory and the improvement of the final sales rates at our regular stores.



Operating Income: Contribution of profits of group companies

→

Turned profitable

TOKYO STYLE GROUP

(Compared with the previous year: Non-consolidated/subsidiaries)

(Millions of yen)

Non-consolidated Subsidiaries Eliminations Total Non-consolidated Y/Y Subsidiaries

Eliminations Y/Y Total Y/Y

Net Sales

6,628

7,284 13,913

6,653

100.4%

13,874

190.5%

20,528

147.5%

Gross Profit

2,023

4,285

6,309

2,679

132.4%

7,940

185.3%

10,620

168.3%

Gross Profit Ratio

30.5%

58.8%

45.3%

40.3%

+9.7pt

57.2%

-1.6pt

51.7% +6.4pt

SG&A Expenses

3,931

3,689

7,621

4,171

106.1%

6,427

174.2%

10,598

139.1%

Operating Income

-1,907

595

-1,311

─

1,513

254.3%

21

─

Ordinary Income

-2,342

417

-1,925

─

1,172

281.1%

-608

─

Income Before Income

Taxes (Qtr)

-3,499

258

-3,240

─

1,114

431.8%

-956

─

Net Income

-3,503

-188

-3,692

─

402

─

─

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3. Consolidated Financial Highlights - Group (2)

SANEI INTERNATIONAL GROUP



Net Sales: Increased due to the increase in the revenue of main brands and the newly opened stores of

new brands



Gross Profit Ratio: Increased since the discount rate was reduced



Operating Income: Increased due to the increase of the gross profit ratio and the reduction of the SG&A

expenses ratio

(millions of yen)

Previous FY *

1st Quarter, FY2012

Results

% of Total

_Results

_{% of Total}

Y/Y

Net Sales

24,711 100.0%

27,027

100.0% +2,315 109.4%

Gross Profit

13,785

55.8%

15,310

56.6% +1,525 111.1%

SG&A Expenses

12,830

51.9%

13,803

51.1%

+973 107.6%

Operating Income

954

3.9%

1,506

5.6%

+552 157.9%

Ordinary Income

861

3.5%

1,603

5.9%

+742 186.2%

Income Before Income

Taxes (Qtr)

494

2.0%

1,588

5.9% +1,093 321.5%

Net Income (Qtr)

174

0.7%

1,696

6.3% +1,521 974.7%

* The account was settled in August in the previous fiscal year.

4. Overview of Business - Domestic Market

DiverCity Tokyo Plaza

Shibuya Hikarie

Tokyo

Solamachi

Mitsui Outlet Park Kisarazu

NEOPASA Shimizu SA

Rush of the opening of new stores in large commercial establishments

Other brands in the location

Other brands in the location Other brands in the location

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5. Overview of Business - Overseas Markets

Aggressive business development in overseas markets

Business Expansion in China

Business Expansion in Hong Kong and South-East Asia



Operation of "JILLSTUART" of

SANEI INTERNATIONAL, using the

Chinese subsidiary of TOKYO

STYLE



"m.tsubomi" increased in revenue.

"JILLSTUART"

Sunshine Department

Store, Qingdao

"m.tsubomi"

China World Trade Center

(Beijing) Branch

II. Progress of the Mid

II. Progress of the Mid

-

-

term Management Plan

term Management Plan

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6. Core Strategies of the Mid-term Management Plan (1)

 Close approx. 300 unprofitable stores of TOKYO STYLE. →Reduce store expenses.

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(1) Reforming cost structure

1) Close low-yielder/unprofitable stores.

 Advertising expenses/sales promotion expenses →Reconsider advertisements in magazines and on billboards to a large extent.

3) Increase of Gross Profit

2) Withdraw from unprofitable business.

 Reconsider the planning and production system of the TOKYO STYLE brand.

→ Reduce advanced plans and increase the interim planning ratio.

 As for the low-yielding brands of the group, a restructure plan is to be made in which the withdrawal of the brands is to be studied. →Investment is to be concentrated on growing brands.

4) Drastic improvement of the SG&A expenses ratio

 Personnel costs →Diminish personnel costs by withdrawing approx. 300 stores (from Oct. 2012).

 Reform the organization of TOKYO STYLE into divisions of each brand business.

→Reinforce the inventory management and clarify the profit responsibility.

7. Core Strategies of the Mid-term Management Plan (2)

(2) Improving profitability

 Consolidate HR, accounting, administration, and system divisions that TOKYO STYLE and SANEI INTERNATIONAL have separately.

 Establish an affiliated enterprises division. →Centralization of information and

(3)Strengthening group management capabilities

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 M&A of 5 companies in FY 2011 →These companies give contributions to the consolidated financial results in the full business year from FY2012.

 Start "Planet Blue" from spring/summer 2013, which is a store business for casual-style fashion.

1) Development of new business

 Aggressive investments on large-market brands such as "nano・universe,”

"NATURAL BEAUTY BASIC,” etc.

 Revised the business plans of group companies in FY2011 and impaired the goodwill value →The burden of SG&A expenses was reduced from FY2012.　

 Reconsider and revise the investment in securities and idle assets, with a view to selling them.

2) Expansion of core brands

4) Effective utilization of assets

3) Re-evaluation of goodwill value

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8. Expectation of Effectiveness of Measures Taken in FY2012

FY2011 Net sales 147,800 FY2011 Cost of sales 76,991 FY2011 SG&A expenses 77,665 52.5% FY2011 Operating income -6,857 1,500 1,300 3,000

(millions of yen)

After FY2013 Effect of reduction Surplus operating income Reduction of personnel cost Affiliated companies' profit Depreciation of goodwill

Cost reduction through reforming cost structure and an increase of profit-earning

capacity

The effects will be achieved on a full-year basis after FY2013 --> Surplus operating income

Increase of the profits of existing subsidiaries and the contribution of the profits of five companies that were acquired (M&As) in the previous fiscal year

Goodwill was impaired in FY2011.

Reduction of personnel cost in stores by

closing unprofitable stores and withdrawing brands

Cost reduction

Aiming at further improvement

III. Forecast for FY2012

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9. Consolidated Business Plan for FY2012

Modify the initial plan due to share transfer and the non-consolidation of

Kate Spade Japan Co., Ltd.

Impact of the share transfer of Kate Spade Japan Co., Ltd.

Ⅎ

Exclude the expected amounts of net sales and profit after share transfer (4th qtr.) from the

initial plan.

ℳ

Account for capital gain as extraordinary profit.

(Millions of yen)

FY2012

FY2012

<Reference>

Initial plan

Ratio against

initial plan Results in FY2011

Net Sales

199,000

197,000

-2,000

99.0%

147,800

Operating Income

-200

-500

-300

─

-6,857

Ordinary Income

300

0

-300

0.0%

-12,255

IV. Reference Data

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10. Net Sales per Brand

(Millions of yen)

Brand Name

_{1st Quarter}

FY2012

% of Total

Y/Y

1.nano

・

universe

4,084

8.6%

148.0%

2. NATURAL BEAUTY BASIC

3,950

8.3%

109.7%

3. ROSE BUD

2,263

4.8%

─

4. MARGARET HOWELL

2,175

4.6%

113.1%

5. Apuweiser-riche

1,645

3.5%

─

6. FREE'S SHOP

1,543

3.2%

103.3%

7. kate spade new york

1,541

3.2%

130.2%

8. HUMAN WOMAN

1,451

3.1%

101.9%

9. & by P&D

1,406

3.0%

109.7%

10.PEARLY GATES

1,226

2.6%

118.1%

Others

26,239

55.2%

─

Total

47,529

100.0%

─

11. Net Sales per Sales Channel

(Millions of yen)

TOKYO STYLE GROUP

SANEI INTERNATIONAL

GROUP Consolidated

Sales Channel

Department store

8,072 39.3%

8,107

30.0%

─

16,179

34.0%

Commercial

facilities*

7,239 35.3%

14,691

54.4%

─

21,930

46.1%

EC

_1,799

_8.8%

₈₈₉

_3.3%

─

_2,688

_5.7%

Overseas

_1,361

_6.6%

₉₄₇

_3.5%

─

_2,308

_4.9%

Others

_{2,057 10.0%}

_2,391

_8.8%

_-26

4,422

9.3%

Total

_{20,528 100.0%}

_{27,027 100.0%}

_-26

47,529 100.0%

* Commercial facilities: Fashion buildings, railroad station buildings, individual stores, outlet shops, etc., except for department stores

* Others: Apparel business, such as wholesale and in-company sales and the non-apparel business of group companies

TSI (Non-consolidated)

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