For the Nine Months of Fiscal Year Ending March 31, 2024

Financial Results Briefing

2024.02.07 UNITED ARROWS LTD.

P04 – P26

Table of Contents

P27 – P37

P38 – P40

P41 – P42

P43 – P47

| 01

Overview of FY24/3 3Q Business Results| 02 Major Initiatives in FY24/3 3Q of theMedium-Term Management Plan

| 03 Progress in Sustainability Initiatives| 04 Message from Yoshinori Matsuzaki,
Representative Director, President,
and CEO| 05 Reference Materials

Cautionary Statement
Earnings forecasts and descriptions other than objective facts contained in this document are basedon decisions made by UNITED ARROWS LTD. in light of information obtainable as of the date of thisreport and, therefore, include risks and uncertainties. Actual earnings may differ materially fromforecasts due to global economic trends, market conditions and other factors. Investors are asked torefrain from making investment decisions based solely on the information contained in thisdocument.

Use of Abbreviations
Abbreviations may be used for the following businesses/store brands:
UNITED ARROWSUA

BEAUTY&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.

PAGE | 3

01
Overview of FY24/3 3Q Business Results

PAGE | 4

01 Overview of FY24/3 3Q Business Results

Consolidated Although sales cleared the previous year's level and gross margin wasmaintained at the same level as the previous year, operating income andother profits decreased due to an increase in SGA expenses
Consolidated sales¥99.7billion
YoY
103.8%

Gross margin

Operating income

Net income¥5.8billion¥4.2 billion

YoY

YoY

91.1%

98.0%

52.7%
Same level as last year•

Despite struggling in the third quarter due to the effects of the warm winter, sales increased due to normalizationof economic activity and recovery in inbound tourism•

Gross margin for the nine months recovered to the FY19/3 level•

The SGA expenses to sales ratio worsened due to increased advertising expenses and personnel expenses, andall profits below operating income decreased
PAGE | 5

01 Overview of FY24/3 3Q Business Results

Consolidated Gross Margin
FY24/3YoY
9M pt difference• Consolidated gross margin remained thesame level as the previous year
• UA LTD. improved by 0.1pt from the previous
year. Although the total business unit wasaffected by higher costs for spring products
and expanded discount sales in fall andwinter, outlet sales improved significantly• COEN CO., LTD. saw a decline from theprevious year, due to increased discountprice sales

Consolidated

52.7%

0.0pt

UNITED ARROWS LTD.

52.5%

0.1pt

Total business unit sales--0.3ptOutlet, etc.

-

4.7pt

COEN CO., LTD.

--1.9pt

UNITED ARROWS TAIWAN LTD.

-

3.8pt

PAGE | 6

01 Overview of FY24/3 3Q Business Results

Consolidated SGA Expenses(Millions of yen)

• Consolidated SGA expenses were ¥46,761 million,

105.7% YoY, and vs. sales were 46.9%, up 0.9 pt YoY

Total SGA expenses
vs. sales• Advertising expenses include impact of one-time

Advertising expenses

costs associated with transfer to the “UA Club”
system at UA LTD.

vs. sales

Personnel expenses
vs. sales• Personnel expenses were affected by increases in

Rent

personnel, wage increases, etc.
• Rent decreased mainly due to the store closure of
COEN CO., LTD.
• Other increases were due to increases in UA online

vs. sales

Depreciation
vs. sales

Other
vs. sales

Change/pt

FY23/3 9M

FY24/3 9M

44,247

46,761

2,514

105.7%

46.0%

46.9%

0.9pt

-

2,124

2,852

727

134.3%

2.2%

2.9%

0.6pt

-

15,42916,000571

103.7%

16.1%

16.0%

- 0.0pt-

13,686

13,644

(41)

99.7%

14.2%

13.7%

- 0.6pt

653

647

(5)

99.2%

0.7%

0.6%

- 0.0pt-

12,353

13,6151,261

110.2%

12.9%

13.7%

0.8pt

-

difference

YoY

sales and variable costs

PAGE | 7

01 Overview of FY24/3 3Q Business Results

Non-consolidated

Non-consolidated sales

Sales exceeded the previous year, gross margin also improved
from the previous year, and the negative number of customers
purchasing at existing stores improved by 0.8 percentage points
from the first half
Gross margin

Operating income¥92.2billion

52.5%¥6.1billion

YoY

YoY diff.

YoY

105.1%+0.1pt94.4%

Existing stores YoY
Sales
Number ofpurchasing
customers

Avg. spend
per customer

106.2%
99.5%
107.4%•

Sales were driven by the Trend-conscious Market centered on UA and BY, and sales surpassed the previous year•

SGA expenses include one-time costs (¥390 million) associated with changes in the membership program that occurred in
the second quarter•

While maintaining the increase in avg. spend per customer, the negative number of customers purchasing at existing stores
was reduced from the previous year to 0.5% (0.8pt improvement from the first half result)
PAGE | 8

01 Overview of FY24/3 3Q Business Results

Non-consolidated by channel: As retail sales continued to improve, online
sales also exceeded the previous year
• Both retail and online sales improved from the(Millions of yen)

FY2023

FY2024

Change/pt

9M

9M

difference

87,81692,286

4,469

105.1%

72,98077,938

4,957

106.8%

82.3%

82.7%

0.4pt

-

49,90153,362

3,461

106.9%

56.3%

56.6%

0.3pt

-

21,78323,1301,347

106.2%

vs. sales

24.6%

24.5%

- 0.0pt-

Other (Wholesale, etc.)

1,295

1,445

149

111.5%

vs. sales

1.5%

1.5%

0.1pt

-

15,692

16,312620

104.0%

17.7%

17.3%

- 0.4pt-

previous year, the composition ratio of theonline sales was 24.5% of the total, almost thesame level as the previous year
• UA online sales were 112.9% of the previous
year, the composition ratio in the total online
sales was 37.4% (YoY diff. +2.2 pts)
• The total sales at other companies’ sites were
102.5% of the previous year

• Sales to inbound tourists were 3.7 times theprevious year, with a composition ratio of 2.9%

Non-consolidated
sales
Total business unit sales
vs. sales

Retailvs. sales

OnlineOutlet, etc.
vs. sales

YoY(YoY diff. +2.1 pts)
PAGE | 9

01 Overview of FY24/3 3Q Business Results

Non-consolidated By business: Trend-conscious Market remained strong• Trend-conscious Market centered on UA and(Millions of yen)

BY continue to grow due to recovery in urban
areas, recovery in inbound tourism, etc.
• Both markets exceeded the previous year
and existing store sales also surpassed the

FY2023 9M

FY2024 9M

ChangeYoY

72,98077,938

4,957

106.8%

Trend-conscious Market

48,44752,642

4,195

108.7%

Basic Trend-conscious Market

24,53325,295762

103.1%

Total business unit sales

previous year

• The challenge is the Basic Trend-conscious

Existing store sales YoY
Retail +Market centered on GLR, and we aim to
improve it from spring/summer

OnlineRetailOnlineTrend-conscious Market

109.3%

109.8%

108.0%

Basic Trend-conscious Market

100.4%

101.5%

98.4%

PAGE | 10

01 Overview of FY24/3 3Q Business Results

Non-consolidated Gross margin continues to improve• Recovered to 52.5%, the highest level since FY16/3, and approximately 53% excluding the impact of the change inrevenue recognition standards• Although the negative impact of higher costs remains in Business Units, improvements continue in Outlets andothers due to inventory optimization
FY24/3YoY
9M pt difference
UNITED ARROWS LTD.
Excluding the impact of the change
in revenue recognition standards

52.5%

0.1pt

51.8%

51.7%

52.1%

52.3%

52.4%

52.1%

52.5%

50.8%

53.2%

Total business unit sales--0.3ptOutlet, etc.

-

4.7pt

45.5%

FY16/9M

FY17/9M

FY18/9M

FY19/9M

FY20/9M

FY21/9M

FY22/9M

FY23/9M

FY24/9M

Non-consolidated Gross margin for 9-month period

PAGE | 11

01 Overview of FY24/3 3Q Business Results

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 thesecond quarter of FY24/3, assales promotion expenses toreserve future discounts

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

Financial impact after September 2023
Sales YoY

About -1.3 to -1.4 pts

Gross margin

About -0.1 pt* Based on current mileage usage estimates, this impact is expected to end by the end of March 2024

PAGE | 12

01 Overview of FY24/3 3Q Business Results

Selected as a “DX Certified Business Operator” by the Ministry of
Economy, Trade and Industry
Certified as ready for DX promotion in compliance with the basic mattersof the “Digital Governance Code”
Our initiatives for DX
April 2021

Established DX Promotion Center*2 with the aim of establishing a business model for the OMO*1 era

May 2023

Promoting various DX strategies with the “UA DIGITAL Strategy” set as one of the main strategies of
the “Medium-term Management Plan 2023-2025”

August 2023

Renewed our membership program and launched a new program using the app, “UA Club”,
updated content to increase customer lifetime value

October 2023

Established the “DX Sales Master” system to evaluate specialists who demonstrate excellent
performance in sales-related DX activities

Currently

We are in the process of renewing our core product management system and creating a system todigitalize product procurement with the aim of optimizing our supply chain*1 Online Merges with Offline*2 Renamed “DX Promotion Office” in April 2023

PAGE | 13

01 Overview of FY24/3 3Q Business Results

Consolidated P/L

PAGE | 14

01 Overview of FY24/3 3Q Business Results

Consolidated P/L 3Q (3 months)

PAGE | 15

01 Overview of FY24/3 3Q Business Results

Consolidated Gross margin
FY24/3YoY
9M pt difference
Consolidated

52.7%

0.0pt

UNITED ARROWS LTD.

52.5%

0.1pt

Total business unit sales--0.3ptOutlet, etc.

-

4.7pt

COEN CO., LTD.

--1.9pt

UNITED ARROWS TAIWAN LTD.

-

3.8pt

PAGE | 16

01 Overview of FY24/3 3Q Business Results

Consolidated Gross Margin 3Q (3 months)
FY24/3 3Q

YoY
pt difference

Consolidated

53.2%-0.6pt

UNITED ARROWS LTD.

53.1%

-0.7ptTotal business unit sales--0.3ptOutlet, etc.

-

1.7pt

COEN CO., LTD.

-

-0.5pt

UNITED ARROWS TAIWAN LTD.

-

5.3pt

PAGE | 17

01 Overview of FY24/3 3Q 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

FY23/3 9M

FY24/3 9M

44,247

46,761

2,514

105.7%

46.0%

46.9%

0.9pt

-

2,124

2,852

727

134.3%

2.2%

2.9%

0.6pt

-

15,42916,000571

103.7%

16.1%

16.0%

- 0.0pt-

13,686

13,644

(41)

99.7%

14.2%

13.7%

- 0.6pt

653

647

(5)

99.2%

0.7%

0.6%

- 0.0pt-

12,353

13,6151,261

110.2%

12.9%

13.7%

0.8pt

-

difference

YoY

PAGE | 18

01 Overview of FY24/3 3Q Business Results

Consolidated SGA Expenses 3Q (3 months)(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

FY23/3 3Q

FY24/3 3Q

15,780

16,543763

104.8%

40.8%

42.8%

1.9pt

-

829

924

94

111.4%

2.1%

2.4%

0.2pt

-

5,153

5,518

365

107.1%

13.3%

14.3%

0.9pt

-

5,088

4,988

(100)

98.0%

13.2%

12.9%

- 0.3pt

217

222

5

102.4%

0.6%

0.6%

0.0pt

-

4,491

4,889

398

108.9%

11.6%

12.6%

1.0pt

-

difference

YoY

PAGE | 19

01 Overview of FY24/3 3Q Business Results

Non-consolidated Sales by Channel(Millions of yen)

FY2023

FY2024

Change/pt

9M

9M

difference

Non-consolidated sales

87,81692,286

4,469

105.1%

Total business unit sales

72,98077,938

4,957

106.8%

82.3%

82.7%

0.4pt

-

49,90153,362

3,461

106.9%

56.3%

56.6%

0.3pt

-

21,78323,1301,347

106.2%

24.6%

24.5%

- 0.0pt

-

1,295

1,445

149

111.5%

1.5%

1.5%

0.1pt

-

15,692

16,312620

104.0%

17.7%

17.3%

- 0.4pt-

Number of

Avg. spend

vs. sales

Retailvs. sales

Onlinevs. sales

Other (Wholesale, etc.)
vs. sales

Outlet, etc.
vs. sales

YoY

Existing stores YoY
Salescustomers per customer

Retail + Online

106.2%

99.5%

107.4%

Retail107.1%

100.7%

106.3%

Online104.4%

97.4%

109.2%

PAGE | 20

01 Overview of FY24/3 3Q Business Results

Non-consolidated Sales by Business(Millions of yen)

FY2023 9M

FY2024 9M

ChangeYoY

72,98077,938

4,957

106.8%

Trend-conscious Market

48,44752,642

4,195

108.7%

Basic Trend-conscious Market

24,53325,295762

103.1%

Total business unit sales

Existing store sales YoY
Retail +OnlineRetailOnlineTrend-conscious Market

109.3%

109.8%

108.0%

Basic Trend-conscious Market

100.4%

101.5%

98.4%

PAGE | 21

01 Overview of FY24/3 3Q Business Results

Consolidated BS

PAGE | 22

01 Overview of FY24/3 3Q Business Results

Consolidated CF

Cash flows from operating activities(sub-total)(Millions of yen)

FY23/3 9M

FY24/3 9M

4,432

2,558

Major breakdown of the results for the term

Income before income taxes

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Cash and cash equivalents
at the end of the period

3,827(1,792)(3,075)

4,420

911

(2,545)(3,744)

6,118

Decrease in provision for bonuses(1,378)

Increase in trade receivables(2,592)

Increase in inventories(2,193)Purchase of property, plant and equipment(880)

Purchase of intangible fixed assets(1,366)

Purchase of long-term prepaid expenses(321)

Decrease in short-term loans payable(306)

Purchase of treasury shares(2,000)

Dividends paid

(1,433)

3,104
PAGE | 23

01 Overview of FY24/3 3Q Business Results

COEN CO., LTD.
February - OctoberSaw decrease in both revenue and income• Sales were ¥6.8 billion, 89.4% YoY• Both sales and gross margin were lower than the previous year, and despite efforts tosuppress SGA expenses, both revenue and income decreased• Although physical stores are on a recovery trend, online sales continue to slow down

• Refine the MD from fall/winter and aim for improvements from spring/summer onwards

UNITED ARROWSTAIWAN LTD.
February - October

Saw increase in revenue and decrease in income• Sales were ¥1.1 billion, 109.8% YoY• Sales and gross margin exceeded the previous year
• Profit decreased due to SGA expenses increased by growth investments such as
CITEN limited-time stores

PAGE | 24

01 Overview of FY24/3 3Q Business Results

Opening and Closing of Stores
Results for 9-month period

Opened 9

Closed 6

Full-year forecast

Opened 12 Closed 9

No. of stores at the 3Q end 301
No. of stores at the period-end 301

Results for 9-month period
No. of stores atthe previous

OpenedClosedperiod end

Full-year forecast

No. of stores atthe 3Q end

No. of stores at

OpenedClosedthe period end(forecast)

298

9

6

301

12

9

301

UNITED ARROWS LTD.

215

8

3

220

11

5

221

COEN CO., LTD.

75

0

3

72

0

4

71

UNITED ARROWS TAIWAN LTD.

8

1

0

9

1

0

9

Total Group

PAGE | 25

01 Overview of FY24/3 3Q Business Results

UA LTD. Retail Stores Opened/Closed
Results for 9-month period
No. of stores atthe previous

OpenedClosedperiod end

Full-year forecast

No. of stores atthe 3Q end

No. of stores at

OpenedClosedthe period end(forecast)

215

8

3

220

11

5

221

104

1

2

103

3

4

103

14

0

0

14

0

0

14

UNITED ARROWS

24

1

0

25

2

1

25

BEAUTY&YOUTH

37

0

1

36

1

2

36

Other

29

0

1

28

0

1

28

85

6

1

90

7

1

91

84

2

1

85

2

1

85

Other

1

4

0

5

5

0

6

Outlet

26

1

0

27

1

0

27

UNITED ARROWS LTD. Total
Trend-conscious Market Total
UNITED ARROWS(General Merchandise Store)

Basic Trend-conscious Market Total
Green label relaxing*STEVEN ALAN OSAKA is recognized as an annex to each BY store and not included in the number of stores above.

PAGE | 26

02
Major Initiatives in FY24/3 3Q ofthe Medium-Term Management Plan

PAGE | 27

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management PlanThree Key Strategies

Strategy• Grow and expand existing
businesses
Top-line growth

Strategy• Brand development forbusiness expansion• Global expansion

Strategy• Promote OMO• Optimize the supply chain

Improvement of gross margin• Strengthen brand appeal
Expansion of investment in
human capital
Rebranding of the corporate brand• Re-grow COEN

PAGE | 28

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management Plan

UA CREATIVITY Strategy: Strengthen brand power - Expansion of investment in human capital

Improve employee engagement
Goal

Significantly improved employee engagement score *1•

The positive response rate increased for each motivational factor

74.5%(Sense of accomplishment, recognition, work itself, delegation of authority,
satisfaction with evaluation, and sense of growth)•Based on the results of an employee awareness survey,
investment distribution to measures that have a high impact
on eNPS *2 contributed•

Major measures for the FY24/3

80.02023 survey

Up 4.5pts

69.8

70.0

- Expansion of educational opportunities- Dissemination of Company policies- Creating opportunities for dialogue with management

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Employee Engagement Score Trend (%)
From the employee awareness survey by UA LTD.
*1 Employee engagement scores
Average positive response rate for motivational factors*2 eNPS
Employee version “Net Promoter Score"; value indicating the degree ofattachment and trust in the workplace

PAGE | 29

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management Plan

UA CREATIVITY Strategy: Strengthen brand power - Expansion of investment in human capital

Generation Z ranked UA LTD. No.1 with high scores for “mutual respectamong employees” *1
Favorable evaluation factor- A culture where employees' intentions are respected- Actively implement initiatives related to social contribution
activities- Implementation of multifaceted evaluation of managers- Conducting employee awareness surveys, etc.
“There is a culture of respecting and accepting the values of others
before presenting our own ideas, so we can grow in terms of changing
the way we perceive things and our thinking.”(Retail, less than 3 years of employment, current position (at time of response), newgraduate, male, UNITED ARROWS)

Quote: “OpenWork” employee reviews*1 OpenWork Inc.'s own research

PAGE | 30

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management PlanThree Key Strategies

Strategy• Grow and expand existing
businesses
Top-line growth

Strategy• Brand development forbusiness expansion• Global expansion

Strategy• Promote OMO• Optimize the supply chain

Improvement of gross margin• Strengthen brand appeal
Expansion of investment
in human capital
Rebranding of the corporate brand• Re-grow COEN

PAGE | 31

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management Plan

The UA MULTI Strategy: Brand development for business expansion

Aiming to expand business by responding to challenges to achieve
long-term vision
Issue along the Age Axis

Issue along the Brand Axis

Issue in terms of business

Main customers are those in the 30s to
40s, with the potential to expand into the
20s

Main businesses are concentrated on traditional,
conservative tastes. There is room to expand inother tastes including casual and mode

• Business domains are mostly fashion,and domestic• There is room to expand value provided
to food, clothing, and living towardmaking lifestyle proposals• Overseas business is currently limited
to Taiwan, with room for expansion,
including entry into China and others

PAGE | 32

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management Plan

The UA MULTI Strategy: Brand development for business expansion

Launch of “ATTISESSION”, a women's brand aimed at the MZ generation*
Expand customer base to MZ generation• Team formation selected from next-generation in-house members such as director, MD, PR, etc.

• Sales starts in some BY stores and the UA online from April 2024, with a plan to open physical storeswithin the next fiscal year
Director: Nanaka Yotsuya
Born in 1998, aged 25. Born in Ishikawa Prefecture. After
graduating from the Fashion Marketing and Distribution
Department of Bunka Fashion College, joined UA LTD. in
2020. Engaged in sales work at the UNITED ARROWS
Shibuya Scramble Square, worked on product planning for
the web-only line within BY brand from spring/summer
2022, and transferred to the BY Product Department inJune 2023.
Instagram: https://www.instagram.com/7k0512/* Generation MZ: Millennials, Generation Z, generations born between the mid-1980s and early 2000s (early 20s to late 30s)

PAGE | 33

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management Plan

The UA MULTI Strategy: Brand development for business expansion

Launch of “ATTISESSION”, a women's brand aimed at the MZ generation
Taste and pricing that resonates with the target generation
Main products and price ranges
Tops¥7,000 - ¥18,000

Shirts¥12,000 - ¥25,000

Bottoms¥13,000 - ¥24,000

Jackets¥22,000 - ¥39,000

Outerwear¥25,000 - ¥70,000

Instagram
https://www.instagram.com/attisession/
2024SS Image Visual

PAGE | 34

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management Plan

The UA MULTI Strategy: Brand development for business expansion

Launched UNITED ARROWS BEAUTY, a cosmetics brand for millennials
Leveraging UA brand name recognition to advance into the cosmetics market• Available in a total of 6 items including BB cream, serum, color shampoo, etc.
• Expanding sales channels through Rakuten Ichiba, Amazon and ZOZOTOWN, besides our selected
physical stores and the UA online• Reliably reach the target audience through PR methods such as the use of influencers

PAGE | 35

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management Plan

The UA MULTI Strategy: Brand development for business expansion

Launched UNITED ARROWS BEAUTY, a cosmetics brand for millennials
Differentiated lineup, pricing that is easy to use day-to-day
Product lineup
BB Cream¥2,530Rich serum¥2,860Face wash powder¥1,980Color shampoo treatment¥2,420each

Hair oil¥2,750(Price including tax)

URL:https://store.united-arrows.co.jp/s/brand/ua/feature/res/unitedarrowsbeauty/
Instagram: https://www.instagram.com/unitedarrowsbeauty_official/

PAGE | 36

02 Major Initiatives in FY24/3 3Q of the Medium-Term Management Plan

The UA MULTI Strategy: Brand development for business expansion

Aim for ¥40.0 billion in new apparel businesses and ¥25.0 billion in apparel derived
businesses and non-apparel businesses over the long term
Planning for this initiative + α is under way, and launch multiple brands within
the medium-term management period
250.0 billion¥

Overseas (Taiwan, China)

10.0

COEN CO., LTD.

25.0
CAGR

UA LTD. new businesses:

6.8%
Overseas (Taiwan)

1.5

Apparel-derived and other domains
UA LTD. new businesses:

130.1 billion¥

Apparel domains

COEN CO., LTD.

10.7

25.0
40.0

UA LTD. existing
businesses

UA LTD.

118.4

150.0

FY2023 Results

FY2033 Plan

(10 years later)

Sales (billions of Yen)

PAGE | 37

03
Progress in Sustainability

Initiatives

PAGE | 38

03 Progress in Sustainability Initiatives

Promoting collection of Code of Conduct for
Business Partners consent forms

Conducting on-site audits of domestic partner
factories• collection rate

• Completed 5 auditing projects scheduled for FY2024/3. (2 projects for
FY 2023/3)

Result at the end of January 2024

74.3

%

(Result at the end of March 2023 48.2% and target 100% by FY 2031/3)• Established the code with the aim of increasing supply chain transparency
and preventing human rights violations• Aim to obtain consent forms from all domestic and overseas business
partners to whom we outsource the production of private label products andOEM products• Conducted a third-party audit by an external organization in accordancewith the Japan Apparel and Fashion Industry Association's “CSR Factory
Audit Requirements”• In the future, we plan to expand the scope of audits to overseas partner
factories“Code of Conduct for Product Procurement Partners”
https://www.united-arrows.co.jp/wp-content/uploads/2023/08/2306_kihan_eng.pdf

Obtained B rating in CDP Climate Change
Report 2023
• The B rating is considered to be at the management level andevaluates that “the company is aware of its own environmental risks
and their impacts and is acting accordingly”
PAGE | 39

03 Progress in Sustainability Initiatives

Support for the 2024 Noto Peninsula Earthquake•

Donation of UA miles
If the customers use their UA miles to make a donation, we will makethe donation to Peace Winds Japan, a certified NPO, on their behalf.
Funds collected will be used for emergency support activities by theorganization's disaster emergency support project, “Flying Searchand Medical Team ARROWS''. As of the end of January, over 1,400
donations totaling over ¥0.8 million have been made•Donation of clothing
A total of 200 items of clothing, mainly outerwear, were donatedthrough the “Flying Search and Medical Team ARROWS”

A scene at the time of delivery of support clothing (Courtesy Peace Winds Japan)

PAGE | 40

04
Message from Yoshinori Matsuzaki,
Representative Director, President, and CEO

PAGE | 41

04 Message from Yoshinori Matsuzaki, Representative Director, President, and CEO

Three Key Strategies

providing excitement - connectingwith customers widely and deeply

PAGE | 42

05
Reference Materials

PAGE | 43

05 Reference Materials: FY24 Group Management Policy

providing excitement - connecting with customers widely and deeply

Take steps to provide new value

PAGE | 44

05 Reference Materials: FY24 Group Management Policy

Three Key Strategies
Strategy• Grow and expand existing
businesses
Top-line growth
Improvement of gross margin

Strategy• Brand development forbusiness expansion• Global expansion

Strategy• Promote OMO• Optimize the supply chain• Strengthen brand appeal
Expansion of investment in humancapitalRebranding of the corporate brand• Re-grow COEN
PAGE | 45

05 Reference Materials: Overview of FY24 Business Plan

Consolidated Business Plan
(Millions of yen)

YoY Change/vs. sales pt

FY2023 Results

FY 2024 Plan

Sales

130,135

138,300

8,164

106.3%

Gross profit

67,178

72,1004,921

107.3%

51.6%

52.1%

0.5pt

-

60,816

65,1004,283

107.0%

46.7%

47.1%

0.3pt

-

6,362

7,000

637

110.0%

4.9%

5.1%

0.2pt

-

538

420

(118)

78.0%

0.4%

0.3%

-0.1pt

-

6,900

7,420

519

107.5%

5.3%

5.4%

0.1pt

-

(352)

(370)

(17)

-

vs. Sales

-

-

-

-

Net income attributable to owners of parent

4,341

4,830

488

111.2%

vs. Sales

3.3%

3.5%

0.2pt

-

vs. Sales

SGA expenses
vs. Sales

Operating income
vs. Sales

Non op. P/Lvs. Sales

Ordinary income
vs. Sales

Extraordinary P/Ldifference

PAGE | 46

05 Reference Materials: Overview of FY24 Business Plan

Non-consolidated Sales Plan
(Millions of yen)

FY2024
1H

FY2024YoY

2H

FY2024
YoY

Full

YoY

54,562104.9%

70,812106.6%

125,375

105.9%-

106.3%-

108.1%-

107.3%

Retail Existing Stores-

104.9%-

106.0%-

105.5%

Online Existing Stores-109.4%-

112.4%-

111.1%

Non-consolidated sales

Retail + Online Existing Stores*The plan includes the impact of the change in revenue recognition standards for non-consolidated sales only.

PAGE | 47