通期決算説明会決算説明会資料｜投資家情報 | TSI HOLDINGS

(1)

2016.4.15

(2)

(3)

3 Consolidated Financial Highlights -Profit and Loss

1-Results of net sales, operating profit and ordinary profit almost met plan

(Unit: Million Yen)

2016 Ending Feb.

Results Composition

Rate Plan Results

Composition Rate Y/Y Change Y/Y Against Plan

Net Sales 180,819 100.0% 167,000 167,211 100.0% -13,607 92.5% 100.1%

Gross Profit 94,609 52.3% 88,119 52.7% -6,490 93.1%

SG&A Expenses 93,684 51.8% 87,057 52.1% -6,626 92.9%

Employment Costs 40,854 22.6% 36,371 21.8% -4,482 89.0%

Business Strategy Costs 6,308 3.5% 5,374 3.2% -933 85.2%

Store Rents 18,162 10.0% 16,034 9.6% -2,128 88.3%

Other Expenses 22,451 12.4% 22,678 13.6% +226 101.0%

SG&A Expenses(exc. Goodwill Amortization, Depreciation and Amortization) 87,777 48.5% 80,459 48.1% -7,318 91.7%

Goodwill Amortization 1,087 0.6% 1,373 0.8% +285 126.3%

Depreciation and Amortization 4,819 2.7% 5,225 3.1% +405 108.4%

Operating Profit 924 0.5% 1,200 1,061 0.6% +136 114.8% 88.4%

Ordinary Profit 2,627 1.5% 2,800 2,592 1.6% -35 98.7% 92.6%

Extraordinary Profit 3,749 2.1% 6,476 3.9% +2,727 172.7%

Extraordinary Loss 1,867 1.0% 5,577 3.3% +3,710 298.7%

Profit Before Taxes 4,510 2.5% 3,491 2.1% -1,018 77.4%

Net Profit 2,294 1.3% 2,900 1,391 0.8% -902 60.6% 48.0%

EBITDA 6,832 3.8% 7,660 4.6% +827 112.1%

*EBITDA = Operating Profit + Goodwill Amortization + Depreciation and Amortization *Plans of net sales, operating profit, ordinary profit and net income are figures announced on Jan. 13, 2016

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SG&A ratio and operating profit improved in 2ND half due to structural reform in 1st half

Consolidated Financial Highlights -Profit and Loss

2-(Unit: Million Yen)

1ST Half 2ND Half

2015 Ending Feb. 2016 Ending Feb. 2015 Ending Feb. 2016 Ending Feb.

Results Composition_Rate Results Composition_Rate Y/Y Results Composition_Rate Results Composition_Rate Y/Y

Net Sales 86,593 100.0% 83,573 100.0% 96.5% 94,225 100.0% 83,638 100.0% 88.8% Gross Profit 45,079 52.1% 44,782 53.6% 99.3% 49,529 52.6% 43,336 51.8% 87.5% SG&A Expenses 44,760 51.7% 45,204 54.1% 101.0% 48,924 51.9% 41,853 50.0% 85.5% Employment Costs 19,782 22.8% 19,468 23.3% 98.4% 21,072 22.4% 16,903 20.2% 80.2% Business Strategy Costs 2,837 3.3% 2,870 3.4% 101.2% 3,470 3.7% 2,503 3.0% 72.1% Store Rents 8,854 10.2% 8,858 10.6% 100.0% 9,308 9.9% 7,175 8.6% 77.1% Other Expenses 10,626 12.3% 10,706 12.8% 100.8% 11,825 12.6% 11,972 14.3% 101.2% SG&A Expenses(exc. Goodwill Amortization, Depreciation and Amortization) 42,099 48.6% 41,903 50.1% 99.5% 45,677 48.5% 38,555 46.1% 84.4%

Goodwill Amortization 456 0.5% 713 0.9% 156.4% 631 0.7% 660 0.8% 104.5% Depreciation and Amortization 2,204 2.5% 2,587 3.1% 117.4% 2,614 2.8% 2,637 3.2% 100.9%

Operating Profit 319 0.4% -422 -0.5% - 605 0.6% 1,483 1.8% 245.0%

Ordinary Profit 1,017 1.2% 613 0.7% 60.3% 1,610 1.7% 1,978 2.4% 122.9% Extraordinary Profit 191 0.2% 2,997 3.6% 1562.7% 3,557 3.8% 3,478 4.2% 97.8% Extraordinary Loss 419 0.5% 4,426 5.3% 1055.5% 1,447 1.5% 1,150 1.4% 79.5% Profit Before Taxes 790 0.9% -815 -1.0% - 3,719 3.9% 4,306 5.1% 115.8%

Net Profit -465 -0.5% -1,462 -1.7% - 2,759 2.9% 2,853 3.4% 103.4%

EBITDA 2,980 3.4% 2,878 3.4% 96.6% 3,851 4.1% 4,781 5.7% 124.1%

*Employment Costs = Personnel Expenses + Subcontract Costs + Sales Commission *Business Strategic Costs = Advertising and Sales Promotion Expenses

(5)

5 Sales Overview

Unit: Million Yen

Net sales excluding withdrawn businesses maintained Y/Y

2015 Ending Feb.

180,819

2015 Ending Feb.

Closed Brands

-6,560

TOP10 Brands

Sales Increase

＋

3,398

2016 Ending Feb.

167,211

2016 Ending Feb.

Closed Brands

-7,586

TOP10 Brands

Sales Decrease

-2,922

Others Sales

Increase

＋

3,464

Others Sales

Decrease

-3,401

Continuing Brands Comparison

160,293

160,832

2015 Ending Feb.

2016 Ending Feb.

100.3

％

• Apuweiser-Riche

Shop#17 Y/Y -1

• JILL by JILLSTUART

Shop# 23 Y/Y

＋

6

• ANGLOBAL SHOP

Shop# 30 Y/Y

＋

3

• DIANE von FURSTENBERG

Shop# 20 Y/Y

＋

6

• Jack Bunny!!

Shop# 10 Y/Y

＋

3

• MARGARET HOWELL

Shop# 96 Y/Y

＋

15

• PEARLY GATES

Shop# 67 Y/Y

＋

17

• STUSSY

Shop# 53 Y/Y

＋

5

• Callaway Apparel

Shop# 22 Y/Y

＋

9

• Free’s Mart

Shop# 37 Y/Y

＋

7

• HUMAN WOMAN

(6)

Brands Overview

7 out of top 10 brands improved gross profit ratio Y/Y

(Unit: Million Yen)

2015 Ending Feb.

2016 Ending Feb.

Y/Y

Sales

Gross Profit

Sales

Gross Profit

Composition

Ratio

Composition

Ratio

1 nano universe

24,355

13.5%

54.7%

22,810

13.6%

56.6%

93.7%

+1.8pt

2 NATURAL BEAUTY BASIC

15,850

8.8%

56.6%

15,763

9.4%

57.1%

99.5%

+0.5pt

3 MARGARET HOWELL

12,653

7.0%

58.3%

12,799

7.7%

57.0%

101.2%

-1.3pt

4 ROSE BUD

10,809

6.0%

45.1%

10,248

6.1%

48.6%

94.8%

+3.5pt

5 PEARLY GATES

8,515

4.7%

50.2%

9,426

5.6%

46.6%

110.7%

-3.5pt

6 STUSSY

5,027

2.8%

62.3%

5,831

3.5%

65.7%

116.0%

+3.4pt

7 Callaway Apparel

5,103

2.8%

33.3%

5,798

3.5%

36.7%

113.6%

+3.4pt

8 & by P&D

5,878

3.3%

52.3%

5,149

3.1%

51.2%

87.6%

-1.0pt

9 Free's Mart

4,315

2.4%

50.8%

5,043

3.0%

52.8%

116.9%

+2.0pt

10 HUMAN WOMAN

4,844

2.7%

0.0%

4,957

3.0%

0.0%

102.3%

-TOP10

97,352

53.8%

50.2%

97,828

58.5%

50.9%

100.5%

+0.7pt

Others Brands

62,941

34.8%

58.7%

63,004

37.7%

57.6%

100.1%

-1.0pt

Continuing Brands Total

160,293

88.6%

53.6%

160,832

88.9%

53.6%

100.3%

+0.0pt

Closed Brands

20,525

11.4%

42.7%

6,378

3.8%

31.1%

-11.6pt

TOTAL

180,819

100.0%

52.3%

167,211

100.0%

52.7%

92.5%

+0.4pt

(7)

7

(8)

Business Results Forecast for FY2017 Ending Feb.

Plan: net sales 166,000 million yen

(Y/Y 99.3%)

, operating profit 3,000 million yen

(Y/Y 282.7%)

(Unit: Million Yen)

1ST Half 2ND Half FY

2016 Ending Feb. Results

2017 Ending Feb.

Plan Y/Y

2017 Ending Feb.

Plan Y/Y

2017 Ending Feb.

Plan Y/Y

Net Sales

83,573

81,500

97.5%

83,638

84,500 101.0%

167,211

166,000 99.3%

Operating

Profit

-422

100 ─

1,483

2,900 195.5%

1,061

3,000 282.7%

Ordinary

Profit

613 1,000 162.9%

1,978

3,600 181.9%

2,592

4,600 177.4%

(9)

9 KPI for 2017 Ending February

Set Key Performance Indicators (KPI) to improve profitability of existing businesses

Achieve budgets by

setting concrete KPI for

each item to improve

profitability of existing

businesses

2017 Ending Feb. Target

E-Commerce Ratio

11.8% ⇒

12.7%

Direct Trading Ratio

11.0% ⇒

18.4%

Purchase Price

Sales Price Setting Rate

(Sales Price / Cost Price)

Sales Volume

(Incl. Increase in Number of Customers and Items Per Customer)

Digestibility

(Sales Volume/ Number of Stocks)

Discount Rate

(Sales Price After Discount / Sales Price)

Y/Y ±0pt

Y/Y +2pt

Y/Y +1.6pt

(10)

(11)

11 Y

Y

M

th

M

th

Y

2015 Ending Feb.

TOP10 : 106.7%

TSI ALL: 102.0%

TOKYO STYLE :

101.4%

SANEI-INTERNATIONAL: 94.8%

2016 Ending Feb.

TOP10 : 95.7%

TSI ALL: 96.4%

TOKYO STYLE :

99.4%

SANEI-INTERNATIONAL: 99.5%

(12)

Net Sales Per Sales Channel

(Unit: Million Yen)

2015 Ending Feb.

2016 Ending Feb.

Composition Rate

Y/Y Change

Department Stores

47,564

26.3%

39,349

82.7%

23.5%

-2.8pt

Commercial Facilities

85,656

47.4%

81,638

95.3%

48.8%

+1.5pt

E-Commerce

18,239

10.1%

19,684

107.9%

11.8%

+1.7pt

Overseas

12,171

6.7%

10,252

84.2%

6.1%

-0.6pt

Others

17,187

9.5%

16,287

94.8%

9.7%

+0.2pt

Total

180,819

100.0%

167,211

92.5%

100.0%

-*1 Fashion buildings, shopping centers, railroad station buildings, individual stores, outlet shops etc. except for department stores

*2 Apparel businesses such as wholesale, in-company sales and non-apparel businesses of the group companies

通期決算説明会 決算説明会資料｜投資家情報 | TSI HOLDINGS

2016.4.15

3

Consolidated Financial Highlights -Profit and Loss

1-Results of net sales, operating profit and ordinary profit almost met plan

SG&A ratio and operating profit improved in 2ND half due to structural reform in 1st half

Consolidated Financial Highlights -Profit and Loss

5

Sales Overview

Unit: Million Yen

Net sales excluding withdrawn businesses maintained Y/Y

2015 Ending Feb.

180,819

2015 Ending Feb.

Closed Brands

-6,560

TOP10 Brands

Sales Increase

＋

3,398

2016 Ending Feb.

167,211

2016 Ending Feb.

Closed Brands

-7,586

TOP10 Brands

Sales Decrease

-2,922

Others Sales

Increase

＋

3,464

Others Sales

Decrease

-3,401

Continuing Brands Comparison

160,293

160,832

2015 Ending Feb.

2016 Ending Feb.

100.3

％

％

％

％

•

Apuweiser-Riche

Shop#17 Y/Y -1

•

JILL by JILLSTUART

Shop# 23 Y/Y

＋

6

•

ANGLOBAL SHOP

Shop# 30 Y/Y

＋

3

•

DIANE von FURSTENBERG

Shop# 20 Y/Y

＋

6

•

Jack Bunny!!

Shop# 10 Y/Y

＋

3

•

MARGARET HOWELL

Shop# 96 Y/Y

＋

15

•

PEARLY GATES

Shop# 67 Y/Y

＋

17

•

STUSSY

通期決算説明会決算説明会資料｜投資家情報 | TSI HOLDINGS