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

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Overview of FY2024/3 Business Results

3

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.

44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

5Sales were ¥134,269 million, 103.2% YoY.
Gross margin was 51.7%, up 0.1pt from previous year.

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

Operating income came to ¥6,740 million, 105.9% YoY, and 5.0% vs. sales, up 0.1pt from previous year.
Ordinary income posted ¥7,486 million, 108.5% YoY, and 5.6% vs. sales, up 0.3pt from previous year.
Net income attributable to owners of parent was ¥4,876 million, 112.3% YoY, and 3.6% vs. sales, up 0.3pt
from previous year.

6Overview of FY2024/3 Business Results

Consolidated P/L(Millions of yen)

Sales
Gross profit
vs. sales

SGA expenses
vs. sales

Operating income
vs. sales

Non op. P/Lvs. sales

Ordinary income

FY23/3

FY24/3

Change/pt
difference

YoY

130,135

134,269

4,133

103.2%

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

Extraordinary P/Lvs. sales77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

Consolidated gross margin was 51.7%, improvement of 0.1pt from previous year.
Gross margin of UNITED ARROWS LTD. was 51.5%, improvement of 0.1pt from previous year.
Gross margin for all business units were down 0.1pt for the whole term, due to negative effects caused byincrease in costs of 2023 spring goods and the early start of sale of winter goods forced by warm winter.
Improvements were made from the previous year for outlets due to decrease in the volume of past inventory
being sold at outlets. COEN CO., LTD. was down 0.3pt from previous year due to expanding discount sales.
Taiwan subsidiary improved 3.5pt.
Consolidated gross margin for 4Q was 48.8%, and up 0.2pt from previous year.
Non-consolidated was 48.4%, down 0.1pt, including the effects of transfer to UA Club.
Consolidated gross margin for all business units and outlet have improved from the previous year.
Both COEN CO., LTD. and Taiwan subsidiary show improvement from previous year.

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

Change/pt
difference

YoY

62,722

1,905

103.1%

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

0.7%

0.7%

0.0pt

-

16,96918,421

1,452

108.6%

13.0%

13.7%

0.7pt

-

FY23/3

FY24/360,81646.7%

105.2%

9

SGA expenses were ¥62,722 million, 103.1% YoY, and 46.7% vs. sales, the same level as previous year.
Advertising expenses were ¥3,823 million, 127.1% YoY, and 2.9% vs. sales, up 0.6pt from previous year.
This has been caused mainly by changes made to the UA Club structure for our members.
Personnel expenses were ¥21,134 million, 98.7% YoY, and 15.7% vs. sales, down 0.7pt from previous year.
This was mainly from a reaction to a special bonus included in UNITED ARROWS LTD. for the previous year
and reduction of personnel of COEN CO., LTD. from store closures.
Rent was ¥18,422 million, 99.3% YoY, and 13.7% vs. sales, down 0.5pt from previous year.
This was mainly due to a reduction in rent from closure of COEN CO., LTD. stores.
Depreciation was ¥918 million, 105.2% YoY, and 0.7% vs. sales, the same level as previous year
This was due to new store openings and investment in systems.
Others were ¥18,421 million, 108.6% YoY, and 13.7% vs. sales, up 0.7pt from previous year.
This was due to increase in variable costs from recovery of sales and increase in related costs accompanying

increase in Company EC sales.

9Overview of FY2024/3 Business Results

Consolidated B/S(Millions of yen)

As of end March As of end March
2023
2024

Total Assets
Composition ratio

Current Assets
Composition ratio

Noncurrent assets
Composition ratio

Current Liabilities

60,204(979)

100.0%

100.0%--

41,60440,372(1,231)

97.0%

251

101.3%(2,454)

89.5%

146

103.6%

1,328

103.9%

68.0%

67.1%

19,58019,831

32.0%

32.9%

23,451

20,997

Composition ratio

38.3%

34.9%

4,030

4,177

Composition ratio

Change61,184

Noncurrent Liabilities
Total Net Assets

vs. previous term-end

6.6%

6.9%

33,70235,030

98.4%

-

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%

Composition ratio-

10

Total assets were 60,204 million, 98.4% YoY.
Current assets were 40,372 million, 97.0% YoY .
This was due to increase in merchandise and decrease in cash and deposits and accounts receivables, etc.
Noncurrent assets were 19,831 million, 101.3% YoY.
This was due to increase in property, plant and equipment accompanying the opening of new stores andintangible assets in preparation of core system renewal and decrease in deferred tax assets.
Current liabilities were ¥20,997 million, and 89.5% YoY.
This was due to increase in notes and accounts payable-trade and decrease in short-term loans payable,
accrued income taxes, provision for bonuses, etc.
Non-current liabilities were ¥4,177 million, 103.6% YoY.
This was due to increase in asset retirement obligation accompanying store opening, increase in allowance
for stock provision, etc.
Total net assets were ¥35,030 million, 103.9% YoY, from increase in retained earnings, and from a decrease
due to dividend payment and acquisition of treasury stock.
The balance of short- and long-term loans payable was ¥202 million, and 8.1% YoY.
Inventory was ¥21,686 million, 105.1% YoY.

It was mainly due to increasing inventory of 2024 spring to summer merchandise aimed at expanding sales.

10Overview of FY2024/3 Business Results

Consolidated C/F(Millions of yen)

FY23/3Major breakdown of results for the
FY24/3term

Cash flows from operating
activities (sub-total)

10,588

7,577

Cash flows from operating
activities

10,2586,341

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)

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

8,562

6,486

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents at theend of term

(1,255)

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

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

11

Cash flows from operating activities amounted to cash inflow of ¥6,341 million.
Cash flows from investment activities amounted to cash outflow of ¥2,656 million.
Cash flows from financing activities amounted to cash outflow of ¥5,773 million.
Cash and cash equivalents were ¥6,486 million.
Main breakdown of each item is as indicated in the slide.

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

Non-consolidated sales were ¥123,685 million, 104.4% YoY.
Non-consolidated gross margin was 51.5%, up 0.1pt from previous year.
YoY sales for existing stores exceeded the previous year, for both retail and online, with 105.5% for retail +online. Number of purchasing customers at existing stores was 100.1% of previous year, with an increase of
6.2% in spend per customer from previous year owing to revision in prices.

12

Overview of FY2024/3 Business Results

Non-consolidated Sales by Channel(Millions of yen)

FY24/3

Change/pt
difference

YoY

118,434 123,685

5,251

104.4%

98,790 104,709

5,919

106.0%

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

82.6%

82.8%

0.2pt

-

66,64170,7834,141106.2%

55.7%

56.0%

0.2pt

-

30,35832,0091,650

105.4%

vs. sales

Retailvs. sales

Online

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-vs. sales

Other (wholesale, etc.)
vs. sales

Outlet, etc.
vs. sales

Existing stores YoY
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

Details of non-consolidated sales
Total of business units sales was ¥104,709 million, YoY of 106.0%.
Retail was ¥70,783 million, YoY of 106.2%.
Online was ¥32,009 million, YoY of 105.4%, and 25.3% vs. sales.
Company EC site was doing well at 113.0% against previous year, with online composition ratio of 36.5% (YoY
difference of +2.4pt)
Both retail and online have grown with the penetration of OMO measures.
Regarding YoY for existing stores, while the number of customers was maintained, the avg. spend per
customer has increased.
Outlet, etc. was ¥21,746 million, 104.8% YoY and 17.2% vs. sales.

13Overview of FY2024/3 Business Results

Non-consolidated Sales by Business(Millions of yen)

FY23/3

FY24/3

ChangeTotal 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%YoY

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

In the Trend-conscious market, good business was maintained, centered on UA and BY, from recovery in city
centers and from the number of inbound tourists resulting in sales of ¥70,039 million with YoY of 107.6%.
Sales of Basic Trend-conscious market centered on GLR were ¥34,670 million with 102.8% YoY.
In both markets, sales at retail + online and existing stores exceeded the previous year.
Although growth in the Basic Trend-conscious market slowed, a trend indicating improvement has been
observed since this April.

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

15

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

For FY2024/3 term, we opened 12 stores while closing 9. The number of stores at the end of the term was 301.

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

17

FY2025/3 Business Plan

18

FY2025/3 Business Plan

Consolidated Business Plan
(Millions of yen)

Sales

¥150,000 million (YoY 111.7%)

Gross margin

52.5% (pt difference 0.8pt)

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

Ordinary income
Net income forthe term
Annual dividend
Payout ratio

Sales

FY25/3
Plan

134,269

150,000

15,730111.7%

69,462

78,7909,327

113.4%

51.7%

52.5%

0.8pt

-

62,722

71,4908,767

114.0%

Gross profit
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%

FY24/3Results

vs. salesvs. sales

Ordinary income
vs. sales(YoY 85.0%. pt difference -0.9pt)

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 difference

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-19

Consolidated performance forecast for FY2025/3 issales of ¥150,000 million, and 111.7% YoY.
Gross margin of 52.5%, and up 0.8pt from previous year.
Gross margin is expected to improve from the previous year in both 1H and 2H.
SGA expenses to be ¥71,490 million, 114.0% YoY, and 47.7% vs. sales, increase of 0.9pt from previous year.
Increase in advertising expenses from aggressive sales promotion measures, and increase in personnel
expenses through wage increases and hiring enhancement.
Increase in temporary expenses and depreciation associated with expansion of store openings and increasein various expenses accompanying relocation of HQ office.
Operating income will be ¥7,300 million, 108.3% YoY and 4.9% vs. sales, a fall of 0.2pt from previous year.
Ordinary income to be ¥7,985 million, 106.7% YoY, and 5.3% vs. sales, a fall of 0.3pt from previous year.
This will be mainly from planned recording of extraordinary loss of ¥1,157 million for impairment loss of COEN
CO., LTD.,and net income attributable to owners of parent is expected to be ¥4,145 million yen, and 85.0% YoY.

As for dividends, interim dividend of ¥17 and year-end dividend of ¥38, totaling ¥55 is forecast with a payout
ratio of 36.6%.

19

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

Gross margin is expected to improve on a consolidated and non-consolidated basis, and for COEN CO., LTD.,for both 1H and 2H compared with previous year.
On a non-consolidated basis, improvements are expected for both total of business unit sales and outlet.

20

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

Non-consolidated sales are expected to be ¥136,933 million, 110.7% YoY.
Sales of existing retail + online store is expected to be 109.7% for the whole term, with 106.4% for retail and116.6% for online.

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

Store openings in FY2025/3 to be 30 stores, with 4 stores closing. Number of stores at the end of the term to
be 327, an increase of 26 stores from the end of previous term.

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

As explained in the previous earnings briefing, there has been a temporary impact on our finances,accompanying the transfer of members to UA Club.

We exchanged the unused points held by our customers in the previous membership program into miles inAugust 2023 and awarded them to the said members when they transferred into the UA Club. Due to thedifference in redemption rate between the systems, conversion from former points into miles resulted in an
increase in the amount.
Assuming that this increase will be used from now, we have booked part of the said amount as a reserve for
future discount into sales promotion expenses in 2Q FY24. After September, this will be recorded as discounton sales, in accordance with the use of the additional provision.
The impact from this process in 1H has been around -0.9pt for the whole term against YoY sales, and about 1.0pt in 4Q. In terms of gross margin, the impact has been -0.1pt for the whole term, and -0.1pt for 4Q.
Due to difference in redemption rate between the former points system and current UA Club, the degree of
reduction in sales amount in accordance with revenue recognition standard has widened.
The former points system was used from April through July during the previous term and thereafter UA Club
was in effect from August. Around -1.0pt has been incorporated into the planned figures for April–July of thisterm 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

24

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

Our Company has been selected as a constituent of ”MSCI Nihonkabu ESG Select Leaders Index,” a
representative index for ESG investment for the first time.
“MSCI Nihonkabu Stock ESG Select Leaders Index” is an ESG investment index presented by MSCI
(Morgan Stanley Capital International) of USA. Using MSCI Japan Stock IMI Index as its parent index, it has
selected Japanese companies with a high ESG rating in various business fields. The Company has been
awarded “A” evaluation in the latest MSCI ESG Rating.
This index is one of the six ESG indices adopted by GPIF (Government Pension Investment fund), thatmanages Japan’s public pension and is one of the largest institutional investors in the world. With thisselection, the Company’s stock will be incorporated into four of the six ESG indices, the other three being
FTSE Blossom Japan Index, FTSE Blossom Japan Sector Relative Index, and S&P/JPX Carbon EfficientIndex.

25

Progress in Medium-Term Management Plan

26

Organizational Structure from FY2025/3

Once again, my name is Matsuzaki, the representative director. I’d like to thank you for your continued
support. I’d like to take this opportunity to report to you on our activities during the previous term, the firstyear of the Medium-term Management Plan, and on the major initiatives for this fiscal year, the second year.
But before I go into the summary report of the first-year activities of the Medium-term Management Plan, I’dlike to report on the organizational changes to be made this fiscal year to realize “aggressive management”(management to increase sales).

27

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
obtained
28

The company, ever since its founding, was an organization based on business, where each major function,such as merchandise, sales, and advertising, were held by each business unit. This was changed into anorganization by major functionality, by merchandise, sales, and advertising from April 2022. This change wasmade to guard ourselves against the COVID-19 pandemic. We carefully examined the business-optimized
operations that were inefficient for the Company as a whole and streamlined the major merchandise, sales,
and advertising functions, and strengthened each function by sharing the know-how among the businesses.
As a result, after two years of this activity, business productivity has improved, and a certain level of results
were obtained to enable business activities to be conducted from a Company-wide optimized point of view,
stretching over the boundaries of business, such as the transfer of personnel between businesses andcollaboration among the stores. With the aim of promoting further growth of each business, we have decided
to change our organization back to an organizational structure based on business units from April 2024.

28

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.

President• 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.

UA Division

BY Division

GLR Division

Brand Business Division

Outlet Division

29

With this change to the business unit structure, we will depart from a defensive (cost reduction) phase andenter into a new offensive (increased sales) phase with the target of further growing. Each business unit
manager is positioned as a person in an associate management role, and they have been appointed as Vice
Presidents to execute the business strategies. We aim to utilize the knowledge gained from thecollaboration among the businesses through organization by function, to develop each business in our
approach towards achieving the Medium-term Management Plan’s targets.
That completes the report on our new organizational structure.

29

Major Initiatives for FY2024/3

30

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

I will now continue with a report on the progress made in the previous term, the first year of our Medium-termManagement Plan.
This shows the evaluation of the progress for each initiative. For growth and expansion of existing
businesses, although there was an increase in sales and profits, we gave ourselves a rating of “△”(mediocre) as both sales and gross margin failed to reach the initial plan. Although our response is starting
to bear fruit towards a recovery for COEN CO., LTD., a rating of “×” (poor) was given as results showed adecline in both income and profit. For all other items, progress was generally as planned.

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)

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

Source: Styling page of UA On-line

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

I will proceed to the details of the progress of each strategic item.
Of the three major strategies, for the first strategy, UA CREATIVITY Strategy,
Digital transformation of sales activities was promoted as we aimed to further grow the existing businesses.
We have digitized the customer service capabilities of the physical stores, and approximately 1,000 staff
members have posted more than 110,000 styling images and videos onto the Company’s e-commerce (EC)site. Sales of the Company EC site conducted through these postings have amounted to ¥9.5 billion,
accounting for more than 70% of the Company’s EC site sales. The realistic dressing and product introduction
displaying the creativity of each sales staff made a great contribution to our results.
Furthermore, by opening new stores and renovating existing ones, we have enhanced the attractiveness ofthe physical stores and this has resulted in spreading contacts and improving store loyalty. As for CITEN, thegrowth promotion brand, nine physical stores, including time-limited period stores, have bene operating andthere have been online sales resulting in growth to a size of ¥1.2 billion within two and half years after the startof business. This matches the speed of growth when the GLR business was created.

32

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

0.1

•

FY24 Consolidated gross margin:% (YoY +pt). 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

Gross margin, one of the indices that indicate the rise of creativity, has reached 51.7%, an improvement of
0.1pt since the previous year. This is just for reference, but calculated on the former accounting standard,
this is equivalent to 52.7%, marking the highest level in the past 10 years. We acknowledge that despite thebackdrop of soaring costs, we have managed to raise the proper sales ratio by suppressing sales at reduced
prices and have provided merchandise with quality that allows an appropriate increase in prices to be made.

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
Expand educational opportunities

Despite hard battle for fall and winter, recovery trend will be seenfrom spring and summer

Dispatch to business schools, implement DX-related training,•

Implemented change in MD accompanying re-branding (from 2023 fall-winter)

career development support, and coaching training•

Organize in-house system to enable solid merchandise, sales, and advertising activities••

Expand promotion slots, recovery of salary level throughincreasing bonus level•

YoY sales trend for COEN CO., LTD.
120%

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

40%2023/82023/92023/102023/112023/122024/12024/22024/32024/434

The next part is about COEN CO., LTD., the one that received a “×” score in the first chart. The results of rebranding and changes to merchandise (MD) are beginning to be noticeable from this spring, and signs ofrecovery can now be seen in the addition of product categories (RONEL) and brush-up of regional MD.
Business performance hit the bottom and has entered a recovery phase from this term.

34

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•

Development preparations for new businesses

・August 2023, start of UA Club, a new membership program

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%
(YoY difference 1.8pt)

Photo from left: image visuals for UNITED ARROWS BEAUTY and ATTISESSION

Global expansion•

Mainland China pop-up store deployment
Shanghai, May–July 2023
Beijing, Sep.–Nov. 2023
Marketing product mix optimized for China market

Ratio of members of F2 and higher*

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

Optimization of supply chain•

Development of UA3.0 (new product management backbone system)
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

The second major strategy comes next. Regarding UA MULTI Strategy, we have started our BEAUTY category
as business development to enlarge our business operations. In addition to the new brand “ATTISESSION” forthe next generation of females, which started its sales the other day, we are discussing multiple ways tohave business deployment and further development studies, such as the new brand “conte,” disclosed
today, aimed at mature adult females. As for global expansion, we have conducted marketing studies
through pop-up shops in China and are now ready for full-scale deployment from this fiscal year.
Regarding the third major strategy, the UA DIGITAL Strategy, “UA Club”, a new House Card (HC) Program, wasstarted in August 2023. As of end of March, there are 1.37 million active members with member sales reaching
107.2% of previous year, and the composition ratio reaching 53.8%, an increase of 1.8pt from the previous
year. The objective of UA Club is to establish a long and deep relationship with each and every customer, toraise their lifetime value. As an index to show this, we place importance on the ratio of customers who maketwo or more purchases annually. In the previous year, this ratio among the members reached 49.2%, anincrease of 0.6pt, indicating results in a steady manner.

35

Major Initiatives for FY2025/3

36

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•

Implement measures to increase number of posts

Full-scale resumption of new store openings•

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

Recovery of GLR•

Improvement of products•

Implementation of strong promotions

Advertisement visual for “Green label
conclusion”

Gross margin improvement•

Pricing in line with exchange rates•

Precise pricing including psychological approaches
Staged introduction to be made from Spring-Summer sale of 2024, full deployment
from next term onwards

Increase human capital investment•

Implement wage increase (5% including wage and salary raise and promotion)•

Flexibility in form of employment to match workstyle diversity

Regrowth of COEN CO., LTD.
•

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

Product photos of RONEL by COEN

37

Let me go onto the major initiatives for this fiscal year.
The first is the UA-CREATIVITY initiative, aimed at developing and growing existing businesses.
Making full use of our strength in over-the-counter sales, the greatest strength of our Company which has
been reported in the results of the previous term, we will make further inroads into digital transformation andimplement measures towards increasing the number of postings. Details will be provided later on.
In the second year, where we will shift over to offence, new store openings will take place at full steam with30 store openings, so we reach 327 stores by the end of the term, an increase of 26 stores from the end of
the previous term.
In a situation where the weak yen continues to be a large issue, we aim to increase the gross margin rate to52.5%, an increase of 0.8pt from the previous term, by setting prices in response to exchange rate levels andincreasing the proper sales ratio. We will aim to maximize gross profit through sophisticating pricing,including a psychological approach which has not been implemented as a setting for the appropriate selling
price.
Regarding the issue of employment, we will continue with educational enhancements to motivate ourmembers to grow to enlarge human capital and implement a 5% increase in wages. Increase flexibility in theform of employment towards diversification of work styles, to secure personnel and raise salary levels.
As businesses to focus on, we will work on seeing a recovery for GLR and COEN CO., LTD., which we struggled
to achieve in the previous term. For GLR, we will carry out strong promotions during the term, in addition to
product quality and MD improvements, to once again have our business recognized. For COEN CO., LTD., wewill restart opening new stores, with 10 openings scheduled during this term. In order to attract a newcustomer base, the neat, casual-taste brand, RONEL, started to be deployed from spring, being introduced in
online stores and some physical stores. Further deployment will take place as we watch the response.

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•

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

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

Let me give some additional explanation regarding the digital transformation of sales activities mentioned
earlier on. The objective is to digitize the customer service sales force that physical stores have, and strive
to create sales staff fans, to ensure more contact opportunities with the Company and time for theCompany, and link that to sales. By conducting DX activities, utilizing the individuality of the sales staff, wewill aim to induce customers not only to visit the Company EC site, but also to physical stores, crossing overthe boundaries imposed by business and stores the individual belongs to.
During the previous term, we concentrated on increasing the number of posts which resulted in posts being
biased towards specific product numbers or not matching the strategic item number. In this term, bycombining the individuality of each sales staff with customer needs, we will create a mechanism to introduce
a wide range of products uniformly, while providing support from the system’s side.
In addition to postings made to the Company EC site, we will aim to cultivate new customers by expanding
customer contact where posts to the EC site will automatically be reflected on Instagram.
During the last term, one of our staff was awarded the title of “Staff of the Year”, given to the best staff
among the 80,000 chosen from various companies in the apparel industry. By enlarging the good practices

that take advantage of our stores sales capabilities, we plan to link it to improving the sales of our physicalstores and EC.

38

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

2. UA MULTI Strategy

3. UA DIGITAL Strategy(Convenience and Efficiency)(New Development)
Business development for business expansion•

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

Newly establish Lifestyle Department
Establish a dedicated organization aimed at full-scale deploymentof lifestyle business
Implement approaches towards attracting the wealthy overseas•

Promotion of OMO•

Improve UA Club functions
Brush up system to make it even easier to use•

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)

Organic growth + Deployment including M&A currently underconsideration

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

We will now continue onto UA MULTI Strategy to achieve new growth.
In addition to ATTISESSION launched the other day and conte announced today, we expect to launchanother brand during this term as new business. Regarding the expansion of lifestyle proposals, we have set
up a dedicated department towards making a full-scale effort and reviewing measures for the wealthy
overseas clientele.
As for new endeavors, we are studying expansion, not only through organic growth, but also including M&A.
Studies are now being made regarding various projects and we will disclose the details once they have been
determined.
Regarding global expansion, we are now making preparations for store openings in mainland China in spring
2025, through expansion under a franchise chain scheme. In Thailand, we have decided to open stores undera franchise scheme. Should the possibility exist, we are open to carrying out studies in areas other than
Taiwan and China.
Finally, regarding UA DIGITAL Strategy, aimed at improving customer convenience, we will be improving thefunctions of UA Club, which started during the previous term, to make it even easier to use. In addition, we
will be renewing our EC site app in an effort to improve the buy rate through enhancing the user interface
and operating speed. Various functional improvements are also conducted day-to-day on our EC site. As for

optimization of supply chain, we will continue with developing UA3.0, the merchandise management
backbone system, which has been introduced in the previous briefings, and aim to launch the system during
FY26/3, the final year of our Medium-term Management Plan.
The above summarize the main initiatives for our three major strategies for this term.

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

Lastly, I would like to explain our new brand, conte, announced today.
As a solution to the issue that our fashion is concentrated on traditional and conservative tastes, we will
embark on a new brand, “conte” along the natural mode axis from the fall-winter season of 2024. We will
cultivate a new customer base with a taste quite different from our major brands.
We have appointed Ms. Emiri Hemmi, with experience working as a director of multiple brands, as the director,
targeting independent, working women in the same generation, their 40s. We will start sales on our EC sitefrom September 2024 while at the same time, opening two 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

Please refer to the slides for the product mix, price range, and product taste.

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

Let me explain the direction of new business, including brands that have already been launched. The aim of
new business is to solve the issues of age and taste axis, out of the issues facing the Company in its effort toachieve its long-term vision. As can be seen from the chart shown here, we aim to capture customers from adomain different from our major existing brands, in terms of age axis and taste axis. During this Medium-termManagement Plan, we will launch the brand and let it expand and grow it over the long term.

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

We envisage a sense of magnitude of 3 to 5 billion yen and 10 billion yen for the respective brands. With
these brands, and brands that will be developed from now, we aim to achieve a scale of 40 billion yen fromnew businesses, in the long term.
That wraps up the review of the previous year and the explanation for the activities this year.

43

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

Three Key Strategies

providing excitement - connecting with customers
widely and deeply

44

I would like to take this opportunity, at the end of my explanation, to convey my message to our investors.
Although we achieved an increase in sales and profits in the previous term, the results were lower than the plan, causing
you concern. I have reported the results and issues in our efforts in the previous slides, I would like to explain the major
reason why we failed to achieve the plan in the previous term.
The first is that while we had expected a warm winter, we failed to fully respond to it. We set up our MD configuration
based on a season-less response, of not relying on warm winter clothing; however, we could not cope with thetemperature change that far exceeded our expectations.
The second is not being able to let GLR and COEN, which targeted the Basic trend and New trend conscious segments, todevelop. In addition to raising prices based on a foreign exchange impact, we failed to set up a product structure that
captures customer needs, and failed to increase sales.
This will be our response to these factors for this term. We had previously strengthened styling proposals and haveshowcased our merchandise as year-around items, but will now expand the quantity and stock of popularity
merchandise, such as purchased goods and separately ordered items exclusively available from the Company whichmake the customer feel that they will miss them unless they purchase the items immediately. With this approach, weplan to encourage our customers to purchase, regardless of the temperature.
This will overlap with my earlier report, where we are promoting activities to further capture our customer needs, such as
strengthening advertisements for GLR to recapture its customers and introducing new MD for COEN. Results haverecently been observed for both brands, showing signs of growth.
While this is not limited just to our Company, there are still many large issues, such as the cheap yen, securing humanresources, and logistics. In the Company’s Trend-conscious market brands, our strength is in the relationship of trustwith customers that allows price increases to be tolerated, and we shall aim for growth while adjusting our retail prices
under this exchange rate situation while maintaining the quality.
Furthermore, we aim to be a company that provides a platform for further opportunities and job satisfaction, and is afriendly workplace, accompanied by remuneration to our sales members who set up a relationship of trust with thecustomers.
Last month, the company welcomed 128 new recruits in the initiation ceremony for new graduates for this fiscal year.
Each new member has expressed their strong interest in fashion and hope and passion for the future. This has made me
proud, once again, that we are carrying out the wonderful activity of brightening up people’s lives through fashion.
Making use of the swelling power of youth, we will proceed to the second year of our Medium-term Management Plan tomeet its goals, while constantly responding to the times.
Your continued support would be most appreciated.

44

Reference Materials

45Reference Materials

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

Sales
Gross profit
vs. sales

SGA expenses
vs. sales

Operating income
vs. sales

Non op. P/Lvs. sales

Ordinary income

FY23/3 4Q

FY24/3 4Q

Change/pt
difference

34,042

34,564522

101.5%

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%

YoY

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

Extraordinary P/Lvs. sales

-

46

46

Reference Materials

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

Sales
Gross profit
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

FY24/3Plan

FY24/3Results

138,300

134,269(4,030)97.1%

72,10069,462(2,637)

96.3%

52.1%

51.7%

-0.4pt-65,10062,722(2,377)96.3%

Vs. plan
Change/vs. sales pt difference

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

47

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

48