For the Fiscal Year Ended March 31, 2024

Financial Results Briefing

2024.05.08 UNITED ARROWS LTD.

p. 3–|

1 Overview of FY2024/3 Business Results

p. 18–|

2 FY2025/3 Business Plan

p. 24–|

3 Progress in Sustainability Initiatives

p. 26–|

4 Progress in Medium-Term Management Plan

p. 45–|

5 Reference Materials

Table of Contents

Cautionary Statement
Earnings forecasts and descriptions other than objective facts contained in this document are based on decisions made by
UNITED ARROWS LTD. in light of information obtainable as of the date of this report and, therefore, include risks anduncertainties. Actual earnings may differ materially from forecasts due to global economic trends, market conditions andother factors. Investors are asked to refrain from making investment decisions based solely on the information contained inthis document.
Use of Abbreviations
Abbreviations may be used for the following businesses/store brands:
UNITED ARROWS:UABEAUTY&YOUTH UNITED ARROWS: BY/BEAUTY&YOUTH
UNITED ARROWS green label relaxing: GLR/green label relaxing

Trend-conscious Market and Basic Trend-conscious Market includes the following store brands:
Trend-conscious Market
UA, BY, DRAWER, Odette e Odile, BLAMINK, ROKU, and STEVEN ALAN
Basic Trend-conscious Market
GLR, and CITEN

Click here for Shared
Research Inc. research
report.

Overview of FY2024/3 Business Results

Overview of FY2024/3 Business Results

Financial Highlights
Consolidated
Although sales and operating income fell short of the initial plan, ordinary income and net income
attributable to owners of parent company have exceeded the plan, resulting in an increase in both sales
and profits. Despite one-time costs accompanying the transfer of the House Card Program to UA Club,
SGA expenses ratio was maintained at previous year’s level. This is the first time since FY19 we have been
profitable in the 4Q.

Gross margin
Although the initial plan was not met, UNITED ARROWS LTD., Taiwan, and consolidated operations
exceeded its level for the previous year. Results for 3Q were lower than the previous year, affected by theearly consumption of winter clothes due to the warm weather, but other quarters exceeded the previous
year.

Non-consolidated
Have managed to achieve an increase in both sales and profit, despite being impacted negatively by thewarm winter and the transfer of the House Card Program. Increase in the amount of spend per customer
has contributed, although the number of customers for existing stores remained the same.

4Overview of FY2024/3 Business Results

Consolidated Sales

Consolidated Gross Margin¥134,269 million 103.2%
YoY

51.7%

YoY

+0.1pt(Millions of yen)

157,41251.7%

121,712118,384

130,135

134,269

51.6%

50.8%
49.9%

45.2%

FY20/3

FY21/3

FY22/3

FY23/3

FY24/3

FY20/3

FY21/3

FY22/3

FY23/3

FY24/3*CHROME HEARTS JP, GK has been excluded from consolidated results since FY21/3 4Q

5Overview of FY2024/3 Business Results

Consolidated operating income¥6,740 million 105.9%
YoY

Net income attributable to owners of parent¥4,876 million(Millions of yen)

YoY

112.3%(Millions of yen)

8,758
6,362

6,740
3,522

1,683

FY21/34,876

FY23/3

FY24/3732-6,613
FY20/3

4,341-7,197
FY22/3

FY23/3

FY24/3

FY20/3

FY21/3

FY22/3

6

Overview of FY2024/3 Business Results

Consolidated P/L(Millions of yen)

FY23/3

FY24/3

Change/pt
differenceSales

130,135

134,269

4,133

103.2%

Gross profit

67,17869,462

2,283

103.4%

51.6%

51.7%

0.1pt

-

60,81662,722

1,905

103.1%

46.7%

46.7%

-0.0pt

-

6,362

6,740

377

105.9%

4.9%

5.0%

0.1pt

-

538

746

208

138.7%

0.4%

0.6%

0.1pt

-

6,900

7,486

585

108.5%

5.3%

5.6%

0.3pt

-

(352)

(331)

21

-

vs. sales

-

-

-

-

Net income attributable to owners ofparent for the term

4,341

4,876

534

112.3%

3.3%

3.6%

0.3pt

-

vs. sales

SGA expenses
vs. sales

Operating income
vs. sales

Non op. P/Lvs. sales

Ordinary income
vs. sales

Extraordinary P/Lvs. sales

YoY

7

Overview of FY2024/3 Business Results

Consolidated Gross Margin

Full year

4Q (3 months)
FY24/34Q

YoY
pt difference

Consolidated

48.8%

0.2pt

UNITED ARROWS LTD.

48.4%

-0.1ptTotal of business unit sales

-

0.4pt

3.5pt

Outlet, etc.

-

0.2pt

-

-0.3pt

COEN CO., LTD.

-

3.8pt

-

3.5pt

UNITED ARROWS TAIWAN LTD.

-

3.2pt

FY24/3YoY
pt difference

Consolidated

51.7%

0.1pt

UNITED ARROWS LTD.

51.5%

0.1pt

Total of business units sales--0.1ptOutlet, etc.

-

COEN CO., LTD.
UNITED ARROWS TAIWAN LTD.

8

Overview of FY2024/3 Business Results

Consolidated SGA expenses(Millions of yen)

Total SGA expenses
vs. sales

Advertising expenses
vs. sales

Personnel expenses
vs. sales

Rent
vs. sales

Depreciation
vs. sales

Other
vs. sales

FY23/3

FY24/3

Change/pt
difference

YoY

60,81662,722

1,905

103.1%

46.7%

46.7%

-0.0pt

-

3,008

3,823

814

127.1%

2.3%

2.9%

0.6pt

-

21,412

21,134

(277)

98.7%

16.4%

15.7%

-0.7pt-18,552

18,422

(129)

99.3%

14.3%

13.7%

-0.5pt

873

918

45

105.2%

0.7%

0.7%

0.0pt

-

16,96918,421

1,452

108.6%

13.0%

13.7%

0.7pt

9

Overview of FY2024/3 Business Results

Consolidated B/S(Millions of yen)

As of end March As of end March
2023
2024

vs. previous term-end
Change61,18460,204

(979)

98.4%

100.0%

100.0%--

41,60440,372(1,231)

97.0%

68.0%

67.1%

19,58019,831

32.0%

32.9%

23,451

20,997

Composition ratio

38.3%

34.9%

Noncurrent Liabilities

4,030

4,177

Composition ratio

6.6%

6.9%

33,70235,030

55.1%

58.2%

Reference: Balance of shortand long-term loans payable

2,504

202

(2,302)

8.1%

Reference: Inventories

20,63921,686

1,046

105.1%

Total Assets
Composition ratio

Current Assets
Composition ratio

Noncurrent assets
Composition ratio

Current Liabilities

Total Net Assets
Composition ratio

251

101.3%-(2,454)

89.5%
-

146

103.6%-

1,328

103.9%-

10

Overview of FY2024/3 Business Results

Consolidated C/F(Millions of yen)

Cash flows from operating
activities (sub-total)

Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents at theend of term

FY23/3

FY24/3

10,588

7,577

10,258(1,255)Major breakdown of results for the
term

6,341

Net income for the term
before income taxes, etc.
Increase in accounts payable
Increase in inventories
Increase in trade receivables(2,656)

Sale of investments inaffiliates
Purchase of property, plantand equipment
Purchase of intangible fixed
assets(5,979)(5,773)

8,562

6,486

Decrease in short-term loans
payablePurchase of treasury shares
Dividends paid

7,155
968
(1,030)
(940)

1,212
(1,084)(1,994)(2,302)(2,000)(1,467)11

Overview of FY2024/3 Business Results

Non-consolidated Sales¥123,685
millionNon-consolidated Gross Margin
YoY

104.4%

51.5%

pt difference+0.1pt101,929

107,482

118,434 123,685

Sales
Number ofpurchasing
customers(Millions of yen)

129,402

Non-consolidated
Existing Stores YoY

51.5%
51.4%

50.2%

49.7%

Avg. spendpercustomer

105.5%
100.1%
106.2%

43.5%

FY20/3

FY21/3

FY22/3

FY23/3

FY24/3

FY20/3

FY21/3

FY22/3

FY23/3

FY24/312

Overview of FY2024/3 Business Results

Non-consolidated Sales by Channel(Millions of yen)

FY23/3
Non-consolidated
sales
Total of business units sales
vs. sales

Retailvs. sales

Onlinevs. sales

Other (wholesale, etc.)
vs. sales

Outlet, etc.
vs. sales

FY24/3

Change/pt
difference

Existing stores YoY

YoY

118,434 123,685

5,251

104.4%

98,790 104,709

5,919

106.0%

82.6%

82.8%

0.2pt

-

66,64170,7834,141106.2%

55.7%

56.0%

0.2pt

-

30,35832,0091,650

105.4%

25.4%

25.3%

-0.1pt

-

1,789

1,916

127

107.1%

1.5%

1.5%

0.0pt

-

20,75821,746988

104.8%

17.4%

17.2%

-0.2pt-Sales

Number of
Avg. spend
customers per customer

Retail + Online

105.5%

100.1%

106.2%

Retail106.3%

100.3%

106.0%

Online103.9%

99.8%

106.8%

13

Overview of FY2024/3 Business Results

Non-consolidated Sales by Business(Millions of yen)

FY23/3

FY24/3

ChangeYoY

Total of business units sales

98,790104,709

5,919

106.0%

Trend-conscious market

65,06370,0394,976

107.6%

Basic trend-conscious market

33,726

34,670943

102.8%

Existing store sales YoY
Retail + Online

RetailOnlineTrend-conscious market

108.3%

108.6%

107.7%

Basic trend-conscious market

100.1%

101.5%

97.8%

14

Overview of FY2024/3 Business ResultsGroup Company Results
COEN CO., LTD.

(Millions of yen)

13,672

Feb – Jan

Decrease in sales and profit

10,816

10,42010,702

FY2021

FY2022

FY2023

9,566• Sales ¥9,566 million, YoY 89.4%• Both sales and gross margin failed to achieve previous year, and we saw a decrease in sales
and profit, despite efforts to suppress SGA expenses• Improving trend is seen in the ongoing term from revision in MD and appropriate inventory

FY2020

FY2024(Millions of yen)

UNITED ARROWS TAIWAN LTD.

1,505
Feb – Jan

Increase in both sales and profit

865

1,001

1,679

1,165

• Sales ¥1,679 million, YoY 111.6%• Although an increase was seen in SGA expenses from approaches made for limited-time
stores, etc., advances have been made in improving gross margin, increasing the profit fromthe previous year

FY2020

FY2021

FY2022

FY2023

FY202415

Overview of FY2024/3 Business Results

Opening and Closing of Stores
No. of storesat FY23 end

OpenedClosedNo. of stores at
FY24 end

Total Group

298

12

9

301

UNITED ARROWS LTD.

215

11

5

221

COEN CO., LTD.

75

0

4

71

UNITED ARROWS TAIWAN LTD.

8

1

0

9

16

Overview of FY2024/3 Business Results

FY2024/3 Major Indicators
Annual dividend

¥

55.00

ROE

Payout ratio

DOE

31.4

%

Inventory turnover

14.2
YoY

+0.6pt%6.3

4.3
No. of storesOpenedtimes

YoY±0.0 times%

12

End of term
number of stores
Difference fromprevious year

9301
, Closed+3 stores

17

FY2025/3 Business PlanFY2025/3 Business Plan

Consolidated Business Plan
(Millions of yen)

Sales

Gross margin
Operating income¥150,000 million (YoY 111.7%)

52.5% (pt difference 0.8pt)¥7,300 million vs. sales 4.9%
(YoY 108.3%, pt difference -0.2pt)

Ordinary income
Net income forthe term

Annual dividend
Payout ratio

FY24/3Results

FY25/3
Plan

Sales

134,269

150,000

15,730111.7%

Gross profit

69,462

78,7909,327

113.4%

51.7%

52.5%

0.8pt

-

62,722

71,4908,767

114.0%

46.7%

47.7%

0.9pt

-

6,740

7,300

559

108.3%

5.0%

4.9%-0.2pt

-

746

685

-61

91.7%

0.6%

0.5%

-0.1pt

-

7,486

7,985

498

106.7%

5.6%

5.3%-0.3pt-(331)(1,157)

(825)

-

-

-

-

-

4,876

4,145

(731)

85.0%

3.6%

2.8%

-0.9pt-vs. sales

SGA expenses
vs. sales¥7,985 million, vs. sales 5.3%

Operating income(YoY 106.7%, pt difference -0.3pt)

Non op. P/L¥4,145 million vs. sales 2.8%
(YoY 85.0%. pt difference -0.9pt)

vs. salesvs. sales

Ordinary income
vs. sales

Extraordinary P/L¥55.00 (interim: ¥17.00, end of term ¥38.00) Net income attributable to owners
vs. sales

36.6%

of parent for the termvs. sales

YoYchange/vs. sales pt difference19

FY2025/3 Business Plan

Gross Margin Plan
FY25/3
1H

YoY

FY25/3
2H

YoY

FY25/3full term

YoY

Consolidated

53.0%

0.6pt

52.1%

1.0pt

52.5%

0.8pt

UNITED ARROWS LTD.

52.8%

0.7pt

51.8%

0.8pt

52.2%

0.8pt

Total of business units sales

-

0.6pt

-

0.6pt

-

0.6pt

Outlet, etc.

-

1.6pt

-

0.9pt

-

1.2pt

COEN CO., LTD.

-

0.3pt

-

2.5pt

-

1.4pt

UNITED ARROWS TAIWAN LTD.

-

-0.0pt--0.6pt--0.3pt20

FY2025/3 Business Plan

Non-consolidated Sales Plan

(Millions of yen)YoY

FY25/32H

60,405108.4%

Retail + Online existing
stores-Retail existing stores
Online existing stores

Non-consolidated sales

FY25/3
1H

YoY

FY25/3full term

YoY

76,527112.6%

136,933

110.7%

109.6%-

109.8%-

109.7%-

106.0%-

106.7%-

106.4%-

117.3%-

116.1%-

116.6%

21

FY2025/3 Business Plan

Store Opening and Closing Plan

No. ofstores at
FY24 end

OpenedClosedNo. of stores at
FY25 end(forecast)

Total Group

301

30

4

327

UNITED ARROWS LTD.

221

17

2

236

COEN CO., LTD.

71

10

2

79

UNITED ARROWS TAIWAN LTD.

9

3

0

12

22

FY2025/3 Business Plan

Financial impact of transition to UA Club
Convert old “points” held bymembers to “miles” whentransferring to UA ClubDue to the difference in the
return rates, the amountincreases when converted
miles are converted to oldpointsAssuming future use of theincrease, a portion of theincrease was lumped into
the second quarter of FY24/3,
as sales promotion
expenses to reserve future
discounts

The increased amount will berecorded as a sales discountfrom September 2023
onwards

Financial impact
FY2024/3 Results
Sales YoY

Full year: -0.9pt, 4Q: -1.0pt

Gross margin

Full year: -0.1pt, 4Q: -0.1pt

SGA expenses¥390 million recorded as advertising expenses in 2Q

FY2025/3 Forecast
Around -1.0pt has been incorporated into the planned figures for April–July of this term as impact on YoY sales

stemming from the difference in redemption rate. Conversely, for 2H of this term, about +0.8pt has been
incorporated in YoY sales as reaction to the temporary negative effects generated in the previous year.

23

Progress in Sustainability Initiatives

Progress in Sustainability Initiatives

Selected for the first time as a constituent in “MSCI Nihonkabu ESG Select Leaders Index”(March 2024)
Accompanying the above, we have been incorporated into four out of six ESG Indexes of GPIF.
*(*Indices targeting domestic stock)•

Accredited as a constituent of MSCI Nihonkabu ESG Select Leaders Index provided by MSCI, USA for the first time•

This index is one of the six ESG indices of Japanese stock adopted by GPIF (Government Pension Investment fund)•With this selection, the Company’s stock will be incorporated into four of the six(MSCI Japan Stock ESG Select Leaders Index, FTSE Blossom Japan Index, FTSE Blossom Japan Sector Relative Index, S&P/JPX Carbon Efficient Index)

Reference: About MSCI Japan Stock ESG Select Leaders Index
https://www.msci.com/our-solutions/indexes/nihonkabu-esg-select-leaders-index
THE INCLUSION OF UNITED ARROWS LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF UNITED ARROWS LTD.
BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

25

Progress in Medium-Term Management Plan

Organizational Structure from FY2025/3

Progress in Medium-Term Management Plan: Organizational structure from FY2025/3

Organizational Structure from FY2025/3
From April 2022

Organization by business 

Objective

Eliminate adverse effects arising from vertical division of businesses

Organization by function
Expected
results

From April 2024

Organization by function 
Organization by business

Strengthen defense (cost reduction) during COVID-19 pandemic,
shift towards top-down management

Results
obtained• Improve operational inefficiencies of operations optimized for business units• Strengthen merchandise, sales, and advertising functions by sharing
knowledge among businesses• To be implemented as a time-limited measure until the structure is firmly
establishedImprovements in productivity (decrease in SGA expense ratio)
Activities beyond the framework of business, such as HR transfers
among businesses, store collaboration, etc.
Re-transition back to Organization by Business

The future • Re-transition back to organization by business making the most of results
obtained28

Progress in Medium-Term Management Plan: Organizational structure from FY2025/3

Organizational Structure from FY2025/3
Aggressive management structure (to increase sales) throughre-transferring back to Organization by Business• Reorganize business units into UA Division, BY Division, GLR Division, Brand
Business Division, and Outlet Division• Appointment of each General Manager of Division to Vice President,
as a person in an associate management role who will have
responsibility for business performance and implement thebusiness strategies.
• Make use of the knowledge of inter-business collaboration acquired
through organization by function to aim for growth of each business.

Return the organization to a structure that will utilize thecharacteristics of each business to achieve the goals of theMedium-term Management Plan.

President

UA Division

BY Division

GLR Division

Brand Business Division

Outlet Division29

Major Initiatives for FY2024/3

Progress in Medium-Term Management Plan: Major Initiatives for FY2024/3

Medium-term Management Plan, Progress Evaluation
Major Strategy
1. UA CREATIVITY
Strategy

Strategy Details
Grow and expand existing
businesses

3. UA Digital Strategy

Progress

Top-line growthΔ

Initial plan unachieved

Gross margin improvement

Δ

Although improvement seen from previous
year, initial plan remains unachieved

Increase human capital investment○

Improve various engagement indices

Rebranding of the corporate brand-

Progress on schedule

Re-growth of COEN CO., LTD.

×

Although signs of improvement can benoticed, decrease in both sales and profit

Brand development forbusiness expansion○

Preparation for new businesses progressing
as scheduled

Global expansion○

Progressing as scheduled, such as China popup stores

Promotion of Online Merges
with Offline (OMO)○

Progressing as scheduled, such as UA Club
starting operation

Optimization of supply chain○

Progress on scheduleStrengthen brand appeal

2. UA MULTI Strategy

Evaluation

31

Progress in Medium-Term Management Plan: Major Initiatives for FY2024/3

1. UA CREATIVITY Strategy
Grow and expand existing businesses
Digital transformation of sales activities• Digitize customer services of physical stores to increase sales
Post contents on styling, blogs, and movies
Number of people posting about styling*
Approximately

1,000

Improve loyalty through opening of new stores and renovations• Consolidated new openings: 12 stores; relocation and renovation : 7 stores; number ofstores at the end of term: 301

Number of styling posts made:Approximately

110,000 posts*Routinely posting persons

Company EC sales via posts (incl. outlet sales within Company EC site)¥9.52 billion(YoY 132%, approximately 70% of Company EC sales, including outlets)

Source: Styling page of UA On-line

Photo, from left to right: UNITED ARROWS WOMEN’S STORE at Azabudai Hills, GLR Tachikawa Store, GLR Koshigaya Lake Town Store

Growth of CITEN・9 physical stores (including 3 limited-time stores) + online shopping
・Has grown into a ¥1.2 billion scale business within two and a half years since start

Photo from left: CITEN 2024 Spring-Summer image visual,
Echika Omotesando Limited Store Opening visual32

Progress in Medium-Term Management Plan: Major Initiatives for FY2024/3

1. UA CREATIVITY Strategy
Grow and expand existing businesses
Gross margin improvement

51.7• FY24 Consolidated gross margin:% (YoY +0.1pt). Equivalent to 51.9% when temporary factors
associated with transfer to UA Club are excluded, equivalent to 52.7%, when computed using former
accounting standards• Gross margin for non-consolidated regular business has been on an improving trend from 4Q

Consolidated gross margin trend

51.7%
51.9%
50.8% 51.0%

FY24 Non-consolidated business unit grossmargin YoY difference
1.0pt

51.6%

51.5% 51.4%
50.8%

0.5pt
49.9%

0.0pt
-0.5pt

45.2%
FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

-1.0pt
FY23

FY24

1Q

2Q

3Q

4Q

33

Progress in Medium-Term Management Plan: Major Initiatives for FY2024/3

1. UA CREATIVITY Strategy
Strengthen brand appeal

Regrowth of COEN CO., LTD.

Increase human capital investment

Despite hard battle for fall and winter, recovery trend will be seenfrom spring and summer• Expand educational opportunities

career development support, and coaching training• Implemented change in MD accompanying re-branding (from 2023 fall-winter)• Organize in-house system to enable solid merchandise, sales, and advertising activities• Expand promotion slots, recovery of salary level throughYoY sales trend for COEN CO., LTD.

Dispatch to business schools, implement DX-related training,

increasing bonus level120%• Improve various scores through above-mentioned initiatives
Engagement Score

74.5%(improvement of 4.5pt)

eNPS

-42.0

100%

(improvement of 16.4pt)
80%

Turnover rate

10.0%

60%

(improvement of 5.0pt)• Switch to new MD• Effect of late summer heat
• Insufficient stocking ofstandard products• Increase inventory by adding standard
products• Insufficient brush up of items added for rapid
response

・Improve accuracy of new MD
・Improve level of new taste items
・Brush up of standard items
・Strong recovery seen in physical stores withhigh composition ratio of new products

2023/112024/240%2023/82023/92023/102023/122024/12024/32024/434

Progress in Medium-Term Management Plan: Major Initiatives for FY2024/3

2. UA MULTI Strategy

3. UA DIGITAL Strategy

Brand development for business expansion

Promotion of OMO• UNITED ARROWS BEAUTY sale starts

・August 2023, start of UA Club, a new membership program• Development preparations for new businesses
ATTISESSION, conte, and several other businesses are being

considered

Number of active members:

Member sales YoY

1.37 million

107.2%(YoY 104.8%)
Member sales composition
ratio

53.8%
Photo from left: image visuals for UNITED ARROWS BEAUTY and ATTISESSION(YoY difference 1.8pt)

Ratio of members of F2 and higher*

49.2%(YoY difference 0.6pt)*% of members making two or more purchases per year

Global expansion

Optimization of supply chain• Mainland China pop-up store deployment• Development of UA3.0 (new product management backbone system)

Shanghai, May–July 2023

Beijing, Sep.–Nov. 2023
Marketing product mix optimized for China market

Requirement definition completed and entering development phase• Reorganization of distribution centers
Operations started at Joso Center, forming three major bases together
with Nagareyama and Kashiwanoha centers

35

Major Initiatives for FY2025/3

Progress in Medium-Term Management Plan: Major Initiatives for FY2025/3

1. UA CREATIVITY Strategy
Expand growth of existing businesses
Digital transformation of sales activities

Gross margin improvement• Implement measures to increase number of posts• Pricing in line with exchange rates

Full-scale resumption of new store openings• Precise pricing including psychological approaches
Staged introduction to be made from Spring-Summer sale of 2024, full deployment
from next term onwards• New store openings: 30 stores, number of stores at the end of term:

327 stores
Expect a net increase of

26 stores from the end of previous fiscal year

Increase human capital investment• Implement wage increase (5% including wage and salary raise and promotion)• Flexibility in form of employment to match workstyle diversity

Recovery of GLR

Regrowth of COEN CO., LTD.

• Improvement of products• Implementation of strong promotions• Resume opening of physical stores; new store openings: 10; number of stores atthe end of term: 79• Start promotion of a new label “RONEL,” with neat and casual tastes

Advertisement visual for “Green label
conclusion”

Product photos of RONEL by COEN

37

Progress in Medium-Term Management Plan: Major Initiatives for FY2025/3

Digital Transformation of Sales Activities
Objective: Digitize ability of customer service sales held by each physical store and strive to form salesperson fans
Expand contact opportunity and time with the Company• Conduct sales activities taking advantage of the individuality of salespersons, to contribute to sales beyond the framework of the business they belong to, or the stores• Increase number of posting staff members and posts
Increase the number of staff members by expanding physical store openings andstrengthening hiring• Item posting without bias to specific items
Control posting with a system so as not to let posts concentrate on a particular item
Combine both staff characteristics and customer needs to enable overall posting of ourwide range of products• New customer development
Automate reposting of images posted to Company EC site to Instagram
To enlarge customer contact, cultivate new customers through Instagram → Company EC
link• Expand sales of existing customers
Launch CRM program, the UA Club, based on purchase history at physical stores andCompany EC site
Improve lifetime value (lifetime customer value)

Link
inducement

Existing
customer

The FutureNew
customer• To contribute not only to the Company’s EC site, but also to the physical stores

Automate
reposting

StylingInduce tophysical store

CRM

Sales staff

Sales data

UA Club

Sales staff

Medium-term Management Plan, Final Year, Company EC Sales Target¥18–19 billion(154 to163% of previous term)
38

Progress in Medium-Term Management Plan: Major Initiatives for FY2025/3

2. UA MULTI Strategy(New Development)

3. UA DIGITAL Strategy(Convenience and Efficiency)

Business development for business expansion

Promotion of OMO• Start of new brands
ATTISESSION, conte
In addition, one more brand to be started within the fiscal year

• Improve UA Club functions
Brush up system to make it even easier to use• Newly establish Lifestyle Department
Establish a dedicated organization aimed at full-scale deploymentof lifestyle business
Implement approaches towards attracting the wealthy overseas• Organic growth + Deployment including M&A currently underconsideration• Renewal of UA Online Application
Carry out staged update to improve user interface and operating speed, toimprove purchase rate
• Improve Company EC site functions
Example: Functional improvements of Company EC site such as the service
to reserve goods online and then settle payment and pick up the items at
the store (started March 2024)

Global expansion• Opening of direct-managed store in mainland China (scheduled forspring 2025)

Optimization of supply chain• Opening a franchise store in Thailand
Open store in Emsphere, a high-sensitivity commercial complex in
BangkokStudies will be made regarding areas other than Taiwan and China
if the possibility exists

Aim to start service with FY26/3• Continue development of UA3.0

39

Progress in Medium-Term Management Plan: Major Initiatives for FY2025/3

Launch of “conte,” a brand aimed at fashion sensitive modern women
Cultivate customer base with a taste axis that differs from the major brands• Main target base is working women in their 40s• A “natural mode” taste axis different from traditional or conservative• Have appointed Emiri Hemmi, with experience as a director at multiple brands, as its director• Sale to start on EC site from September 2024, accompanied by two physical stores in Tokyo

40

Progress in Medium-Term Management Plan: Major Initiatives for FY2025/3

Launch of “conte,” a brand aimed at extremely sensitive modern women
Product line-up centered on original planned products• Ratio of original planned products and purchased goods is expected to be 85:15• Main products and price range (Fall-Winter, 2024)
Coats¥70,000 to ¥150,000

Pants¥20,000 to ¥50,000

One-piece dresses¥30,000 to ¥60,000

Shirts¥20,000 to ¥40,000

Jackets¥45,000 to ¥60,000

Skirts¥20,000 to ¥50,000

Knitted wear

¥20,000 to ¥40,000

T-shirts¥10,000 to ¥30,000

41Progress in Medium-Term Management Plan: Major Initiatives for FY2025/3

Direction of new business
Objective of new business is to solve issues towards achieving the long-term vision (age axis, taste axis)

Trend-conscious market

Basic Trend conscious market

50s

50s

40s

40s

New
brand
30s

30s

20s

20s

CasualConservative

Mode

CasualConservative

Mode

42

Progress in Medium-Term Management Plan: Major Initiatives for FY2025/3

Scale of assumed sales of new business
Brand

CITEN

ATTISESSIONconte

New brand

Introduction timing

Fall 2021

Spring 2024

Fall 2024

Spring 2025

MarketBasic Trend conscious market

Trend-conscious market

Trend-conscious market

Basic Trend conscious market

Objective

Expansion of age axis

Expansion of age axis

Expansion of taste axis

(mid-20s to early 30s, men and women)(20s to early 30s, women)(mode within trend-conscious market)(casual within basic trend-conscious
market)¥5 billion¥3 billion¥5 billion¥10 billion

Assumed scale

Expansion of taste axis

Coming soon

43

Progress in Medium-Term Management Plan: Message from President, and CEO

Three Key Strategies

providing excitement - connecting with customers
widely and deeply

44Reference Materials

Reference Materials

Consolidated P/L for FY2024/3 (4Q, 3 months)(Millions of yen)

FY23/3 4Q

FY24/3 4Q

Change/pt
difference

YoY

Sales

34,042

34,564522

101.5%

Gross profit

16,543

16,883339

102.1%

48.6%

48.8%

0.2pt

-

16,56915,960

(608)

96.3%

48.7%

46.2%

-2.5pt

-

(25)

923

948

-

-

2.7%

-

-

194

204

9

105.1%

0.6%

0.6%

0.0pt

-

169

1,127

958

665.8%

0.5%

3.3%

2.8pt

-

(53)

(160)

(106)

-

vs. sales

-

-

-

-

Net income attributable to owners ofparent1

622

621 41484.5%

0.0%

1.8%

1.8pt

vs. sales

SGA expenses
vs. sales

Operating income
vs. sales

Non op. P/Lvs. sales

Ordinary income
vs. sales

Extraordinary P/Lvs. sales-

46

Reference Materials

Consolidated P/L for FY2024/3 Vs. plan
(Millions of yen)

FY24/3Plan

FY24/3Results

Sales

138,300

134,269(4,030)97.1%

Gross profit

72,10069,462(2,637)

96.3%

52.1%

51.7%

-0.4pt-65,10062,722(2,377)

96.3%

47.1%

46.7%

-0.4pt

-

7,000

6,740

(259)

96.3%

5.1%

5.0%

-0.0pt

-

420

746

326

177.8%

0.3%

0.6%

0.3pt

-

7,420

7,486

66

100.9%

5.4%

5.6%

0.2pt

-

(370)

(331)

38

-

-

-

-

-

4,830

4,876

46

101.0%

3.5%

3.6%

0.1pt

-

vs. sales

SGA expenses
vs. sales

Operating income
vs. sales

Non op. P/Lvs. sales

Ordinary income
vs. sales

Extraordinary P/Lvs. sales

Net income attributable to ownersof parent for the termvs. sales

Vs. plan
Change/vs. sales pt difference

47Reference Materials

UNITED ARROWS LTD. Retail Store Opening and Closing
No. ofstores at
FY23 end

No. ofstores at
FY24 end

OpenedClosed

215

11

5

221

104

3

4

103

UNITED ARROWS (General Merchandise Store)

14

0

0

14

UNITED ARROWS

24

2

1

25

BEAUTY&YOUTH

37

1

2

36

Other

29

0

1

28

85

7

1

91

Green label relaxing

84

2

1

85

Other

1

5

0

6

26

1

0

27

UNITED ARROWS LTD. Total
Trend-conscious Market Total

Basic Trend-conscious Market Total

Outlet48