ＴＳＩホールディングス（3608） – Results Briefing: FY Ending Feb. 2022

R e s u l t s B r i e f i n g : F Y E n d i n g F e b . 2 0 2 214th April 2022AGENDA123456Results Overview FY Ending Feb. 2022Business SituationAbout Situation by ChannelAbout Balance SheetFull-year Consolidated Business Plan for FY Ending Feb. 2023Reference Data2Covid-19 Impact on 2ND Half Results of 2022 Ending Feb.In the first half of 2H of the fiscal year, there were signs of a recovery in business performance following a temporary end to the COVID-19 infection, but the infection spread explosively again in January of Q4. The number of new infections reached a record high on January 18.The impact is not limited to the retail trends affected by the domestic infection but began with the disruption of product procurement because of COVID-19 at overseas production sites, and the entire supply chain challenges due to soaring oil prices, yen depreciation, and the conflict are affecting business management. Number of new infections nationwide2.6万人以上（過去最多超）At least 26,000 people (Past record high)５千人以上At least 5,000 people５千人未満Less than 5,000 peopleQ3 of FY02/2022 (Sep.-Nov.) Q4 of FY02/2022 (Dec.-Feb.) Lifting of the declaration of a state of emergency and measures to contain the spread of COVID-19for all prefectures on September 30, 2021Record number of new infections(25992 persons)since January 18, 2022Measures to contain the spread and other priority measures2021/10/12021/11/12021/12/12022/1/12022/2/12022/3/1First confirmation of community-acquired Omicron strainMeasures to contain the spread of COVID-19 taken in 3 prefectures, Okinawa, Yamaguchi, Hiroshima （the measures spread to 34 prefectures on Jan. 27）32,197 new infections per day, a new record high (previous record was marked on Aug. 20, 2021)Lifting of the measures to contain the spread for 18 prefectures and for the first time in about 2 months with no area where the measures are takenSource: the website of the Ministry of Health, Labour and Welfare1000008000060000400002000002021/9/1Dec. 22Jan. 9Jan. 16Mar. 22 1Results Overview FY Ending Feb. 20224 2nd Half Result Highlights for FY Ending Feb. 2022Net sales were affected by the fifth and sixth waves of COVID-19 and by strategic efforts to curb discount sales. As a result, they were lower than the previous year, standing at -2.17 billion yen. However, existing businesses, excluding businesses withdrawn in the previous period, achieved 100.7%. Operating income increased 4.68 billion yen because of the improved gross profit margin and reduced SG&A expenses, leading to a significant improvement in profitability. Net Sales75.63 Billion yenYoY 97.2%YoY Change-2.17 Billion yenOperating Income3.30 Billion yenYoY Change +4.68 Billion yenCompared to year before lastChange +3.07 Billion yenCurrent Net Income-0.86 Billion yenYoY Change -19.16 Billion yenCompared to year before lastChange -1.99 Billion yen5 Full-year Business Highlights for FY Ending Feb. 2022The impact of COVID-19 spread further from the previous year, making it difficult to control the business throughout the year.Net sales improved from the previous year, although sales declined significantly from two fiscal years ago, which were before the COVID-19 pandemic. Operating income was the highest ever, even given COVID-19, as a result of structural reforms gradually bearing fruit.Net Sales140.38 Billion yenYoY +104.7%YoY Change +6.30 Billion yenCompared to year beforelast Change -29.68 Billion yenOperating Income4.44 Billion yenYoY Change +16.28 Billion yenCompared to year beforelast Change +4.37 Billion yenCurrent Net Income1.02 Billion yenYoY 26.5%YoY Change -2.83 Billion yenCompared to year beforelast Change -1.16 Billion yen6Operating Profit Transition Expenses for FY Ending Feb. 2022Set a new record-high operating income (previous record was 2.54 billion yen in FY02/2017) amid COVID-19 Main factorsFocus on getting rid of the deficit in 1H of the year and improving profitability throughout the year To improve profitability in the 1st half, we havereviewed a revenue structure that tends to achieve ahigher profit in the 2nd half.In addition, the establishment of a management system to improve profitability, which was continued throughout the year, contributed to raising the overall profitability. As a result, we recorded the highest profit level also in 2H of the fiscal year. 5.04.03.02.01.00.0-1.0-2.0-3.0-4.0-5.01.130.1-0.19-0.16-10.46Operating profit over 5 yearsUnit : Billion yen4.443.302.472.072.172.280.230.07-1.37-11.84EBITDA ¥8.88 Billion / EBITDA Rate 6.3%1st Half上期 営業利益Operating Income2nd Half下期 営業利益Operating IncomeFull-year 通期 営業利益Operating IncomeEnding Feb. 2018 Ending Feb. 2019 Ending Feb. 2020 Ending Feb. 2021 Ending Feb. 20227 FY02/2022 Full Year Difference from the adjusted forecastAlthough we disclosed a revised forecast of operating income of 2.4 billion yen because of the anticipated deterioration of business performance caused by the COVID-19 spread in February, the COVID-19 impact was smaller than expected. In addition, appropriate control of sales yields and purchase inventories, as well as a significant reduction in SG&A expenses, have resulted in a significant deviation from the forecast, making operating income reach 4.44 billion yen and the operating income difference stand at 2.04 billion yen. 0.31Unit : Billion yen4.44Reduction of sundry costs, such as promotions, travel, etc.0.980.751.10Initial Plan2.40Increase in operating income due to better performance +1.06 billion yenAmendment PlanReduction of SG&A expensesImprovement of gross profit by improving inventory digestion rateImprovement of gross profit by suppressing discountsOperating profit performance8Gross Profit/SG&A Expenses for FY Ending Feb. 2022Gross Profit54.7%Unit : Billion yen> Gross ProfitGross Profit54.2%1,00010090090800807007060060500504004095095850857507565065550554504576.82 Biilion yenYoY Change ＋12.98Billion yenYoY 120.3%Compared to year before last 85.9%SG&A Expenses72.38 Billion yenYoY Change -3.30 Billion yenYoY 95.6%Compared to year before last 81.0%•Inventory was 101.8% YoY, 86.3% compared to two fiscal years ago, maintaining a low level on par with the previous year.52.8%52.6%84.387.139.463.847.6%Ending Feb. 2021Ending 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. 2020Ending Feb. 2018Ending Feb. 2022Ending Feb. 2019Gross Profit売上総利益売上総利益率Gross Profit MarginSG&A Expenses56.5%76.8• Profitability improved due to limited discounts.51.0%• Our business structure has been reinforced with 50.0%high added value.⇒ Improved profit by 13.0 billion Yencompared to last year> SG&A expenses58.0%• Review of payroll system and bonus for employees• Review of rent and guarantee during the store closing 52.8%51.4%82.184.852.5%89.351.6%53.0%period 75.772.3logistics carriers• Review of work system at stores and headquarters•Improvement of transportation costs by changing 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. 2020Ending Feb. 2021Ending Feb. 2018Ending Feb. 2019Ending Feb. 2022SG&A 販管費Expenses販管費率SG&A Expenses Rate• Recovery of sales and continuing previous year’s level of expense reduction 4.9pt improvement compared to last year55.0%54.0%53.0%52.0%48.0%43.0%9Net Income Impact Items for FY Ending Feb. 2022Ordinary income was 5.83 billion yen including non-operating income of 1.90 billion yen due to dividend income /real estate income, etc. Extraordinary income of 2.54 billion yen, including gains on sales of securities, and extraordinary losses of 5.66 billion yen, including goodwill impairment and loss due to temporary closing, were recorded. After adding -1.69 billion yen in income taxes-deferred, net income for the year was 1.02 billion yen, with a profit margin of 0.7%. ・Dividend income 0.76 billion yen・FX income 0.3 billion yen ・Real estate income 0.3 billion yen ・Investment securities 1.71 billion yen・ Sale of non-current assets 0.39 billion yen・ Cooperation funds for large-scale facilities, etc. 0.19 billion yen 1Due to goodwill impairment: -3.87 billion yen・Ueno Shokai goodwill impairment 2.69 billion yen ・ Adjustment of corporate tax, etc. 1.18 billion yenUnit : Billion yen-0.51billion yen2.54billion yen-2.97billion yen1.9billion yen・Expenses on real estate 0.13 billion yen・Interest expenses 0.1 billion yen4.44billion yenOperating profit margin3.2%・Impairment loss 1.53 billion yen ・Loss due to temporary closing 1.19 billion yen-0.51billion yen1.02billion yen-2.69billion yen-1.18billion yenOperating incomeNon-operating incomeNon-operating expensesExtraordinary incomeExtraordinary lossesIncome taxes deferredIncome taxesNet income attributable to owners of parentOrdinary Income 5.83 Billion yenProfit Before Taxes 2.71 Billion yenNet income1.02 Billion yen２ Business Situation11 FY02/2022 Full Year Structure of Operating Income The golf and street businesses remained strong, significantly exceeding the budget, with a budget variance of 4.99billion yen. Although brands with a higher percentage of e-commerce performed well, the mainstay women’s business was dragged down by a decline in customer traffic at real stores. In addition, select businesses, such as Ueno Shokai and ROSE BUD significantly struggled. Operating income, which does not include employment adjustment subsidies, was 3.45 billion yen.1.100.834.16-1.363.45-1.28Unit : Billion yen0.994.44Initial Planof Operating incomeGolf and athleisure brandsStreet brandsWomen’sSelect andcosmeticsOriginal ability valueSubsidies for employment adjustmentOperating Income result12FY02/2022 Strategic Brand [NANO universe]Although the brand struggled in 1H of the current fiscal year, the effects of structural reforms were evident in 2H of the year. We saw a significant improvement in operating income from the previous year and two previous years ago.Compared to FY02/2020, the operating profit margin was +8.3pt .NANO universe, which began as a select store in 1999, started rebranding in March 2022 in preparation for its 25th anniversary in 2024. Operating profit trends in the 2ND Half■ Launch of rebrandingCompared to year Before last+8.3pt6.9%0.8%営業利益Operating profit営業利益率Operating profitrate-1.4%100000000.0%80000000.0%60000000.0%40000000.0%20000000.0%0.0%-20000000.0%-40000000.0%2020年2月期Ending Feb. 20202021年2月期Ending Feb. 20212022年2月期Ending Feb. 2022By expanding the range of itemgenres and prices, the brandaims to attract new customer segments in addition to existing customers.7.0%5.0%3.0%1.0%-1.0%-3.0%-5.0%13Good Standing Golf Business for FY Ending Feb. 2022Various collaborations through the Spring 2022 collection theme [LOVED ONE].Continue to provide new contents and gain customer support.TWICE“Special love that groups build”LINE FRIENDS“Love connected by LINE FRIENDS”New Balance“Love of strength that each of these areas has”IDÉE“Love for the affluence of life in our lives”LOVOT“New form of love between humans and robots”３ About Situation by Channel15Sales by Channel for FY Ending Feb. 2022Real stores in Japan and overseas are recovering, although we are still in the midst of the COVID-19 pandemic. Cumulative sales increased slightly, but profits improved significantly because of the success of the strategy of prioritizing profitability.Department stores/Commercial facilities: Growth rate remained strong at 107.7% YoY even with a lower speed of recovery compared to year before lastDomestic EC： Profitability improved because of “curbing discounting at other companies‘ EC sites” and “increasing the ratio of highly profitable in-house e-EC sites”, but sales remained at the same level at 96.6% of the previous year’s level. Some overseas supply chain disruptions also had an impact.• Overseas： Driven by the U.S. and European operations, sales expanded significantly by 130.7% from two previous years ago and 128.1% from the FY Ending Feb. 202021.39 Billion Yen(Composition Rate：12.6%)86.03 Billion Yen(Composition Rate：50.6%)36.34 Billion Yen(Domestic E-Commerce ratio：25.3%)17.81 Billion Yen(Composition Rate：10.5%)8.50 Billion Yen(Composition Rate：5.0%)FY Ending Feb. 202112.48 Billion Yen(Composition Rate：9.3%)56.75 Billion Yen(Composition Rate：42.3%)40.68 Billion Yen(Domestic E-Commerce ratio ：37.0%)15.50 Billion Yen(Composition Rate：11.6%)8.67 Billion Yen(Composition Rate：6.5%)FY Ending Feb. 202213.82 Billion Yen(Composition Rate：9.8%)60.73 Billion Yen(Composition Rate：43.3%)39.28 Billion Yen（Domestic E-Commerce ratio：34.5%）15.43 Billion Yen(Composition Rate：11.0%)11.10 Billion Yen(Composition Rate：7.9%)Growth by channelcompared to year before last (%)YoY (%)64.670.6108.186.7110.7107.096.699.5130.7128.1*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. ••Domesticprevious year. Department StoresCommercial Facilities(*1)E-CommerceDomestic Others(*2)Overseas(*3)16 EC Sales Results for FY Ending Feb. 2022Although domestic EC sales and the percentage of e-commerce remained high at 96.6%, 34.5% YoY respectively because of the withdrawal of ••brands and the curbing of discount measures, the total sales growth rate is approaching a plateau.The in-house EC ratio significantly grew to 45.4%(Compared to year Before last 155.9%) while ensuring high profitability.• Overseas EC sales continues to grow, reaching 113.9% of the previous year. ■E-commerce Sales SummaryUnit : Billion yen■In-house ECFY Ending Feb. 2020FY Ending Feb. 2021FY Ending Feb. 2022Compared to year Before last(%)YoY(%)Strong golf and street businesses and steady women’s brands, which have shifted smoothly to strengthen OMO, drove growth in the company’s in-house EC ratio.In‐house EC(ratio(％)) Domestic E‐Commerce(ratio(％)) ※１Overseas E‐Commerce(ratio(％)) ※２E‐Commerce TOTAL(ratio(％))※１155.9(+13.9pt)99.8(+1.5pt)11.44(31.5)36.34(25.3)0.79(9.3)17.87(43.9)40.68(37.0)3.24(37.4)17.84(45.4)39.28(34.5)108.1(＋9.2pt)3.69(33.3)469.2(＋24.0pt)37.12(24.4)43.92(37.0)42.98(34.4)115.8(＋10.0pt)96.6(-2.5pt)114.1(-4.1pt)97.9(-2.6pt)国内自社EC比率In-house EC rate43.9%45.4%31.5%55.0%50.0%45.0%40.0%35.0%30.0%25.0%20.0%15.0%※1 Domestic E‐Commerce ratio excluding domestic and other sales (wholesale, company sales, etc.)※2 Results of EfuegoCorp. which operates EC sites centering on Tactics.com in the U.S. is to be consolidated from the secondquarter of 2021 and onward. The results are recorded in overseas sales.Ending Feb. 2020年2月期2020Ending Feb. 2021年2月期2021Ending Feb. 2022年2月期2022４ About Balance Sheet18About Balance SheetThere are no issues with cash and deposits, inventory, etc., and the company’s Decrease of 10.6 billion yenfinancial position is sound. Going forward, the company will focus on business growth and expansion and increase its investment ratio.> Cash and Deposits• 【 YoY 】Mainly due to repayment of long-term and short-term borrowings> Inventory• 【 YoY 】Inventory at 101.8%, maintaining an appropriate level compared to 104.8% of sales> Non-current assets• 【 YoY 】Decrease in tangible fixed assets: -1.6 billion yen (normal depreciation) Decrease in intangible fixed assets:-3.4 billion yen (mainly a decrease in goodwill of Ueno Shokai）> Capital adequacy ratio• Maintained a high capital adequacy ratio of 69.2%Unit:Million YenFY Ending Feb. 2021Cumulative Q3RD 2022Ending Feb.FY Ending Feb. 2022Current Assets82,71453.078,58651.975,54753.5-7,16791.3-3,03896.1(of Cash and Deposits)49,87132.035,68923.639,25827.8-10,61378.73,569110.0(of which, Inventory)18,40011.822,66015.018,72713.3327101.8-3,93382.6Non-current Assets73,37347.072,77348.165,70646.5-7,66889.5-7,06790.3(of Investment Securities)28,87318.530,20520.028,39720.1-47698.4-1,80894.0(of Investment Real estate)4,9803.24,9573.34,7363.4-24595.1-22195.5Total Assets156,088100.0151,358100.0141,253100.0-14,83590.5-10,10593.3Current Liabilities35,97023.031,10120.528,37520.1-7,59478.9-2,72691.2(of Short-term borrowings)1520.11300.11150.1-3875.3-1588.4(of Current portion of long-term borrowings)8,9155.77,0354.66,2124.4-2,70369.7-82388.3Non-current Liabilities22,68814.517,60511.615,14210.7-7,54666.7-2,46486.0(of Long-term borrowings)16,08210.311,5537.69,8036.9-6,27961.0-1,75084.9Total Liabilities58,65837.648,70632.243,51730.8-15,14174.2-5,18989.3Total Net Assets97,43062.4102,65267.897,73669.2306100.3-4,91695.2Total Liabilities and Net Assets156,088100.0151,358100.0141,253100.0-14,83590.5-10,10593.3Y/YChangeY/Y (%)Q4/Q3ChangeQ4/Q3 (%)ResultsCompositionRate (%)ResultsCompositionRate (%)ResultsCompositionRate (%)５Full-year Consolidated Business Plan for FY Ending Feb. 202320Profit and Loss Plan for FY Ending Feb. 2023Net sales are projected to be 157.3 billion yen, 112.1% of the previous year’s level (106.3% based on the previous revenue standard). Considering the impact of cost increases because of foreign exchange rates and head office relocation costs, SG&A expenses are projected to be 86.55 billion yen, 119.6% of the previous year’s level (108.3% based on the previous revenue standard).As a result, operating income and net income are expected to be 1.5 billion yen and 1.4 billion yen, respectively.Unit : Billion yenFY Ending Feb. 2021FY Ending Feb. 2022Increase or DecreaseNet Sales134.07Billion Yen(YoY：78.8%)140.38 Billion Yen(YoY：104.7%)Plan for FY Ending Feb. 2023*1157.35 Billion Yen(YoY：112.1%)+16.96 Billion YenRate of Change(%)+12.1SG&A Expenses75.68 Billion Yen(Composition Rate：56.5%)72.38 Billion Yen(Composition Rate：51.6%)86.55 Billion Yen(Composition Rate：55.0%)+14.17Billion Yen+19.6(Composition Rate：+3.4pt)Operating Income-11.84 Billion Yen(Profit margin ：-%)4.44 Billion Yen(Profit margin：3.2%)1.50 Billion Yen(Profit margin：1.0%)Current Net Income3.86 Billion Yen(Profit margin：2.9%)1.02 Billion Yen(Profit margin：0.7%)1.50 Billion Yen(Profit margin：1.0%)-2.94 Billion Yen+0.48Billion Yen-66.1+46.7※1 Adapt new revenue standards21FY02/2023 Full Year Profit and Loss Plan Operating Income VarianceThe result for the fiscal year ended February 28, 2022 was 4.44 billion yen. Considering employment adjustment subsidies received in the current fiscal year and one-time expenses such as relocation costs, and others, the budget for FY02/2023 is set at 1.5 billion yenin operating income, including the impact of higher procurement costs due to foreign exchange rate fluctuations.Considering the effects of sustained rent reduction due to relocation, the original potential is 3.18 billion yen in operating income. 4.44-0.99-0.98Operating income for FY02/2022Employment adjustment subsidiesOne-time expenses, such asrelocation costFirst year expenses for new businessEC sales expansionReduction in fixed costsOperating income estimate for FY02/23Removal of one-time expensesOriginal potential0.31.50.7Rent reduction due to relocation-0.95-0.32Profitability under pressure due to soaring purchase costsEffects of sunstained rent reductions resulting from relocation0.983.1822 Office Consolidation Project Office relocation, which has been facilitated based on TIP24 of the Structural Reform Program, is scheduled to be implemented in September of this fiscal year ending February, 2023. All 24 offices of the company (as of August 2020) are to be consolidated into 9 offices. We will reduce the total floor space and promote workstyle reform to hold the office attendance rate at 65% by encouraging teleworking. The annual fixed rent will be reduced by 700 million yen.Consolidation of office locations24locations9locationsReduction of 15 locationsAnnual rent reduction effect-0.7 billion yenWorkstyle reformOffice attendance rate65%30% reduction in office rentPer-day attendance1200 persons → 780 persons６ Reference Data24Highlights of Q4 Results for FY Ending Feb. 2022Consolidated FinancialHighlights -Profit and Loss-(December to February)Unit:Million YenQ4TH 2021 Ending Feb.Q4TH 2022 Ending Feb.Net Sales36,858100.0 36,467100.0 -39198.9Gross Profit17,10546.4 18,83551.7 1,730110.1SG&A Expenses20,67656.1 19,57553.7 -1,10094.719,45052.8 18,38650.4 -1,06494.5Goodwill Amortization1640.4 2000.6 36122.5Depreciation and Amortization1,0612.9 9882.7 -7393.0Operating Income-3,571-9.7 -740-2.0 2,831-Ordinary Income-3,346-9.1 -405-1.1 2,940-Extraordinary Income22,37360.7 9792.7 -21,3944.4Extraordinary Loss3,73810.1 4,12911.3 390110.5Profit Before Taxes15,28841.5 -3,555-9.8 -18,844-Profit Attributable to Owners of Parent14,98740.7 -4,443-12.2 -19,430-EBITDA ※-2,345-6.4 4481.2 2,794-*EBITDA＝Operating Income + Goodwill Amortization + Depreciation and AmortizationY/Y (%)SG&A Expenses(excl. Goodwill Amortization, Depreciation and Amortization)ResultsCompositionRate (%)ResultsCompositionRate (%)Y/YChange25Highlights of Full-year Results for FY Ending Feb. 2022FinancialHighlights -Profit and Loss-Unit:Million YenFY Ending Feb. 2021FY Ending Feb. 2022Net Sales134,078100.0140,382100.06,303104.7Gross Profit63,84647.676,82654.712,980120.3SG&A Expenses75,68956.572,38651.6-3,30395.671,15053.168,00648.4-3,14495.6Goodwill Amortization7620.67880.625103.4Depreciation and Amortization3,7762.83,5912.6-18495.1Operating Income-11,843-8.84,4403.216,283-Ordinary Income-10,359-7.75,8344.216,193-Extraordinary Income24,85918.52,5431.8-22,31610.2Extraordinary Loss8,6446.45,6644.0-2,98065.5Profit Before Taxes5,8554.42,7121.9-3,14246.3Profit Attributable to Owners of Parent3,8612.91,0220.7-2,83826.5EBITDA ※-7,304-5.48,8206.316,124-*EBITDA＝Operating Income + Goodwill Amortization + Depreciation and AmortizationY/Y (%)SG&A Expenses(excl. Goodwill Amortization, Depreciation and Amortization)ResultsCompositionRate (%)ResultsCompositionRate (%)Y/YChange26Highlights of Full-year Results for FY Ending Feb. 2022Net Sales Per ChannelFY Ending Feb. 2021FY Ending Feb. 2022Department Stores12,4819.313,8209.8110.70.5 Commercial Facilities(*1)56,74542.360,73643.3107.00.9 In-house EC17,87113.317,84212.799.8-0.6 3rd Party22,80917.021,44315.394.0-1.7 E-Commerce40,68130.339,28628.096.6-2.4 Others(*2)15,50411.615,43411.099.5-0.6 Domestic125,41293.5129,27792.1103.1-1.4 E-Commerce3,2382.43,6942.6114.10.2 Overseas(*3)8,6666.511,1047.9128.11.4 E-Commerce TOTAL43,91932.842,98030.697.9-2.1 TOTAL134,078100.0140,382100.0104.7-*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. CompositionRate (%)Y/Y (%)Composition RateY/Y Change(pt)Results(Million yen)CompositionRate (%)Results(Million yen)27 Highlights of Full-year Results for FY Ending Feb. 2022Brands OverviewUnit:Million YenFY Ending Feb. 2021FY Ending Feb. 20221.nano・universe19,87914.843.517,86112.749.589.8+6.0 2.PEARLY GATES10,1527.652.415,06910.761.9148.4+9.5 3.MARGARET HOWELL8,6756.551.511,0027.866.1126.8+14.6 4.NATURAL BEAUTY BASIC10,6778.049.310,3567.458.097.0+8.7 5.HUF4,1803.146.16,7334.851.1161.1+5.0 6.AVIREX5,8934.460.06,2404.462.1105.9+2.1 7.UNDEFEATED4,4323.337.54,3893.141.199.0+3.7 8.STUSSY4,7563.562.44,2863.169.890.1+7.4 9.new balance golf2,7612.139.13,6322.657.8131.5+18.7 10.ROSE BUD3,8042.841.23,4552.544.590.8+3.3 TOP1075,21456.148.783,02959.157.0110.4+8.2 Other Brands54,72440.846.557,27240.851.5104.7+5.0 Continuing Brands129,93896.947.8140,30199.954.7108.0+6.9 Closed Brands4,1393.141.1800.1106.22.0+65.1 TOTAL134,078100.047.6140,382100.054.7104.7+7.1 YoYSalesCompositionRate (%)Gross ProfitRatio (%)SalesCompositionRate (%)Gross ProfitRatio (%)Sales (%)Gross ProfitRatio (pt)28Highlights of Full-year Results for FY Ending Feb. 2022Domestic Monthly Sales InformationFY 2021 Ending Feb. All Stores：75.9％Existing Stores：82.2％FY 2022 Ending Feb. All Stores：103.1％Existing Stores：99.5％29Highlights of Full-year Results for FY Ending Feb. 2022Store DistributionFY Ending Feb.2021StoreOpenStoreCloseFY EndingFeb. 2022Y/YChange872+32-99805-6752+4-1541-11924+36-114846-78Restaurant9–27-2Cosmetics33+8-536+3966+44-121889-77DomesticTotalDomesticOverseasTotalDomesticApparelDescriptions about future within this document are based on the information that the company obtains on the date of this report and certain assumptions deemed to be reasonable. Actual earnings may differ materially from various future factors.