FY02/24 (FY2023) Q1

Results Presentation Material

July 6, 2023

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Onward Group’s Raison d’Être

Copyright © ONWARD HOLDINGS CO., LTD.

Enriching and Adding Color to People’s Lives
while Caring for the Planet© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

22

Contents

Consolidated Financial Results andPerformance Forecasts Highlights

402

FY2023 Q1 Consolidated Financial
Results

1003

FY2023 First Half and Full Year
Consolidated Performance Forecasts

13

04

Topics

16

05

Appendix19

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01

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

33

01
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Consolidated Financial Results andPerformance Forecasts Highlights© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

44

FY2023 Q1 : Consolidated Financial Results Highlights
Net Sales

49.9

billion yen+12% YoY+5.4 bn yen YoY

Operating Profit

5.4

billion yen+168% YoY
+3.4 bn yen YoY

Recurring Profit

4.9

billion yen+84% YoY+2.2 bn yen YoY

Net Profit

3.3

billion yen+84% YoY+1.5 bn yen YoY

1. In Q1, our key brands including Nijyusanku, GOTAIRIKU, Chacott, and PET PARADISE,
continued to perform well as a result of our focus on strengthening customer-oriented
product development and sales services. In addition, new brands such as KASHIYAMA
and UNFILO accelerated growth.

Copyright © ONWARD HOLDINGS CO., LTD.

2. Customers visiting our physical and online stores increased steadily due to increased
recognition of our “Click & Try” OMO service and the improved accuracy of our marketingmeasures utilizing social media. As a result, net sales grew faster than initially planned.
3. The global business reforms, which we have been working on over the past few years,
have also clearly borne fruit. While gross profit margin continued to increase due partly to
improvement in the efficiency of the product supply chain, the SG&A expenses ratio
declined significantly partly due to improvement in sales efficiency through the operation ofmulti-brand stores.
4. As a result, operating profit, recurring profit and net profit all increased significantly.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

5

FY2023 1H / Full-Year : Performance Forecasts Highlights
Net Sales

First
Half

90.0

billion yen+10% YoY+7.8 bn yen YoY

Full
Year

188.8

billion yen+7% YoY+12.7 bn yen YoY

Operating Profit

Recurring Profit

4.0

3.4

billion yen+1973% YoY+3.8 bn yen YoY

10.0

billion yen+92% YoY+4.8 bn yen YoY

billion yen+420% YoY
+2.7 bn yen YoY

9.0

billion yen+69% YoY+3.7 bn yen YoY

Net Profit

2.4

billion yen+404% YoY
+1.9 bn yen YoY

5.0

billion yen+63% +54億
YoY+12%+1.9 bnyen
YoY+54億 +12%

Copyright © ONWARD HOLDINGS CO., LTD.

1. Since the Q1 performance significantly exceeded the initial plans, the Company
revised up its performance forecasts for the first half of the fiscal year.
2. The Company also revised up its full-year performance forecasts while maintaining its
initial forecasts for the second half.
3. As a result, we forecast operating profit of 10 billion yen (for the first time in 11 fiscal
years since FY2012), recurring profit of 9 billion yen and net profit of 5 billion yen for
the full year.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

6

Trends of Operating Profit and Operating Profit Margin◼ Operating profit for FY2023 is expected to reach 10 billion yen for the first timein 11 fiscal years since FY2012.
5.3％(Billion yen)

5.0%

Operating Profit

Operating Profit Margin

4.3%

11.2
3.0%

130
3.4%
3.0％

9.4

2.0%

45億円 1.4%

1.7%

3.8

4.2

5.7

1.0%

2.1%

5.2

10.0

80

1.9%

5.2

4.5

-1.0%

30

▲20

-1.1
-0.6％

-3.1
-1.2％

▲70

Copyright © ONWARD HOLDINGS CO., LTD.

-3.0%

-5.0%
2012
年度

2013
年度

2014
年度

2015
年度

2016
年度

2017
年度

2018
年度

2019
年度

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

7

-20.2
2020

▲120

-11.5％
年度

2021
年度

2022
年度

FY2020

FY2021

FY2022

2023
年度

（予想）
FY2023(Forecast)
Note: New revenue recognition standards havebeen applied since FY2020.

Shareholder Returns▍Dividends Policy
The Company views the distribution of profits to shareholders as one of the
management’s highest priority issues, and sets a dividend payout ratio target of 35%
or more, ensuring stable and appropriate distribution of profits in conjunction with its
performance.

➢ The Company plans a year-end dividend of 16 yen for FY2023 (scheduled for
May 2024), up 2 yen from the initial plan of 14 yen (up 4 yen from 12 yen in
FY2022), in line with the upward revision of the full-year forecast for net profit.

▍Dividends

Copyright © ONWARD HOLDINGS CO., LTD.

FY2023

FY2022

Initial Forecast

Dividends per Share (yen)

16

14

●●
12

Total Dividends (mil. yen)

2,171

1,900

1,628

Net Profit (mil. yen)

5,000

4,000

3,061

Payout Ratio

43.4%

47.5%

53.2%

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

8●●

Revised Forecast

億円

億円

Promote Management that is Conscious of Cost of
Capital and Stock Price▍Recognition of the current situation and future plans
Recognizing that improving PBR and ROE is a key management issue, we will
announce a comprehensive financial strategy together with a revised version of"ONWARD VISION 2030" and a medium-term three-year management plan
(FY2024-FY2026) scheduled for release next April, and promote it with speed.
ROE

PBR

13.9％

（％）
（times）

1.0

0.8

0.7
0.6

0.6

6.0

0.6

Cost of shareholders’ equity

0.5

Copyright © ONWARD HOLDINGS CO., LTD.

-42.0％End of
FY2018

4.3％

3.1％
0.0

End of
FY2019End of
FY2020End of
FY2021

End of
FY2022Endof2023
FY2023
年度
Q1 of Q1
End

▍Future planned disclosure

2018
2019
2018
2019
FY2018 FY2019
年度
年度
年度
年度

-31.6％
2020
2021
2022
2023
2020
2021
2022
2023
FY2020 年度
年度
年度
年度
FY2021
FY2022
FY2023年度
年度
年度
年度*We recognize that the Company’s cost of shareholders’ equity isapproximately 6%.

As “Action to Implement Management that is Conscious of Cost of Capital and Stock Price”, we plan
the following disclosures.
• Announcement of FY2023 interim financial results (October 2023): Outline of financial policies andtarget financial indicators• Announcement of FY2023 year-end financial results (April 2024): Specific measures for realization© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
of financial policies and target financial indicators
9

02
Copyright © ONWARD HOLDINGS CO., LTD.

FY2023 Q1 Consolidated Financial Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

10
10

FY2023 Q1 : Consolidated Financial Results◼ Net sales increased to 49.9 billion yen, up 5.4 billion yen (12.0%) YoY.
◼ Operating profit increased to 5.4 billion yen, up 3.4 billion yen (+168.3%) YoY as a result ofhigher gross profit margin (+2.6pp) and a lower SG&A expense ratio (-3.7pp), and theoperating profit margin was 10.8% (+6.3pp).
◼ Net profit increased to 3.3 billion yen, up 1.5 billion yen (+83.6%).
◼ EBITDA increased to 6.5 billion yen, up 3.2 billion yen (+94.5%).
Q1 Results(Million yen)

FY2023% of Change

Net Sales

49,90744,551+5,356+12.0%

2

Gross Profit

28,97924,718+4,261+17.2%(% of Sales）(58.1%)(55.5%)

SG&A Expanses

23,59922,713(% of Sales）(47.3%)(51.0%)

Operating Profit

5,380

2,005

(% of Sales）(10.8%)(4.5%)

Recurring Profit

4,861

2,638

(% of Sales）(9.7%)(5.9%)Net Profit

3,348

1,823

(% of Sales）(6.7%)(4.1%)EBITDA※

6,545

3,365

(% of Sales）(13.1%)(7.6%)

4

5

6

7© Copyright 2007-2015 ONWARD
HOLDINGS
CO.,LTD.
*Note: EBITDA= operating profit+ depreciation and amortization.

11

Change1

3

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022(+2.6%)

+886

+3.9%
(- 3.7%)+3,375+168.3%(+6.3%)+2,223+84.3%(+3.8%)+1,525+83.6%(+2.6%)+3,180+94.5%(+5.5%)

FY2023 Q1 : Net Sales & Operating Profit by Segment◼ In the domestic business, both the apparel and lifestyle segments increased sales YoY.
Operating profit increased significantly by +115.4% in the apparel segment and by+68.8% in the lifestyle segment.
◼ In the overseas business, sales increased by more than 20% YoY, and operating
profit/loss improved by 0.4 billion yen, although an operating loss remained.

Q1 Results(Million yen)

FY2023+4,117+12.3%

4,604

2,137

+2,467+115.4%

10,539

9,808

+731

+7.5%

1,256

744

+512

+68.8%

48,09943,251+4,848+11.2%

Operating Profit

5,860

2,881

+2,979+103.4%

Net Sales

4,496

3,732

+764

+20.5%

Operating Profit

-251

-613

+362

49,90744,551+5,356+12.0%

5,380

2,005

+3,375+168.3%

Net Sales

LifestyleOperating Profit
Net Sales

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3
4

Domestic Total
Overseas Total
Net Sales

5

Consolidated Total
Operating Profit

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

12% of Change

33,443

ApparelOperating Profit

2

Change37,560Net Sales1

FY2022

03
Copyright © ONWARD HOLDINGS CO., LTD.

FY2023 First Half and Full Year
Consolidated Performance Forecasts© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

13
13

FY2023 1H / Full-Year : Consolidated Performance Forecast◼ First-half net sales are expected to be 90 billion yen, up 7.8 billion yen (+9.5%) YoY. Gross profit
margin is expected to increase by 2.2pp YoY, and gross profit is expected to increase by 6.2 billion
yen (+14.0%). The SG&A expenses ratio is expected to improve by 2.0pp YoY. As a result of theabove, operating profit is expected to be 4 billion yen, up 3.8 billion yen (+1972.5%). Net profit isexpected to be 2.4 billion yen, up 1.9 billion yen (+404.2%).
◼ Full-year performance forecasts are a combination of the upwardly revised first-half performance
forecasts and the initial second-half forecasts, which remain unchanged.
First Half

Full-Year(Million yen)

FY2022

Change% of hange

FY2023

FY2022

Change% of Change

1

Net Sales

90,00082,166+7,834+9.5%

188,800

176,072+12,728+7.2%

2

Gross Profit

50,98044,735+6,245+14.0%

105,780

96,751+9,029+9.3%（% of Sales）(56.6%)(54.4%)(+2.2%)(56.0%)(54.9%)

SG&A
Expenses

46,98044,542+5.5%

95,78091,537（% of Sales）(52.2%)(54.2%)(- 2.0%)(50.7%)(52.0%)

Operating
Profit4,000

193+1972.5%

10,0005,214（% of Sales）(4.4%)(0.2%)(+4.2%)(5.3%)(3.0%)

Recurring
Profit3,400

654+419.9%

9,000

5,319

（% of Sales）(3.8%)(0.8%)(+3.0%)(4.8%)(3.0%)Net Profit

2,400

476

+404.2%

5,000

3,061

（% of Sales）(2.7%)(0.6%)(+2.1%)(2.6%)(1.7%)

6,600

2,838

+132.6%

15,10010,373(+3.8%)(8.0%)(5.9%)

3

4
Copyright © ONWARD HOLDINGS CO., LTD.

FY2023

5

6

7※

EBITDA+2,438+3,807+2,746+1,924+3,762（% of Sales）(7.3%)(3.5%)© Copyright 2007-2015 ONWARD HOLDINGS
CO.,LTD.

14*Note: EBITDA = operating profit + depreciation and amortization.

(+1.1%)+4,243+4.6%(- 1.3%)+4,786+91.8%(+2.3%)+3,681+69.2%(+1.8%)+1,939+63.3%(+0.9%)+4,727+45.6%(+2.1%)

FY2023 1H / Full-Year : Forecast of Net Sales & Operating Profit by Segment◼ In the domestic business, in the apparel segment for the full year, net sales are expected toincrease by 9.1 billion yen (+7.1%) and operating profit by 3.9 billion yen (+78.0%). In thelifestyle segment for the full year, net sales are expected to increase by 3 billion yen (+7.8%)
and operating profit by 0.5 billion yen (+20.1%) from the previous fiscal year, which aresignificant increase.
◼ In the overseas business for the full year, net sales are expected to increase by 2.1 billion yen(+12.2%) YoY. Although an operating loss remains, operating profit/loss is expected to improveby 0.8 billion yen.
First Half

Full-Year(Million yen)
FY2023

1

2

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3

4

5

ApparelLifestyleDomestic Total

Overseas Total

Consolidated Total

Change% of Change

FY2023

FY2022

Change% of Change

Net Sales

65,92259,704+6,218+10.4%

137,803

128,672+9,131+7.1%

Operating
Profit3,279

484+2,795+577.5%

8,924

5,014

+3,910+78.0%Net Sales

20,557

19,155+1,402+7.3%

41,791

38,779+3,012+7.8%

Operating
Profit

1,968

1,484

+484

+32.6%

3,275

2,727

+548

+20.1%Net Sales

86,47978,859+7,620+9.7%

179,594

167,451+12,143+7.3%

Operating
Profit

5,247

1,968

+3,279+166.6%

12,1997,741+4,458+57.6%Net Sales

8,613

7,733

+880

+11.4%

19,35817,250+2,108+12.2%

Operating
Profit- 728- 1,132

+404

- 300

- 1,090+790

Net Sales

90,00082,166+7,834+9.5%

188,800

176,072+12,728+7.2%

Operating
Profit4,000

193+3,807+1972.5%

10,0005,214+4,786+91.8%

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

15

FY2022

04
Copyright © ONWARD HOLDINGS CO., LTD.

Topics© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

16
16

Capital and Business Alliance with WEGO Co., Ltd.

- Strategic partnership for mutual use of the two companies’ platforms ◼ Overview of WEGO
✓ Company Profile：
WEGO is a fashion company that aims to create new value by combining fashion,culture, and lifestyle to add color to the town and the world with the theme of “YOUR
FAN.” WEGO’s main customer base is Generation Z, who are in their teens and 20s.
✓ Net sales: Approximately 30 billion yen (fiscal year ended February 2023)✓ Number of stores: Approximately 170 stores (as of February 2023)✓ Number of employees: Approximately 2,200 employees (as of February 2023)✓ Our stake: 20.27%

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Purpose of the capital and business alliance✓ The Company has started a capital and business alliance with WEGO through athird-party allotment of shares by WEGO Co., Ltd., a fashion company.
✓ The purpose of this capital and business alliance is to contribute to the businessexpansion of both the Company and WEGO by combining their respective
strengths. The Company aims to acquire a new customer base by utilizing WEGO’s
strengths in marketing platforms for Generation Z.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

17

Deepening of Capital and Business Alliance with
SanMarino Co., Ltd.
Onward Holdings Deepens Capital and Business Alliance with Textile Trading
Company SanMarino Co., Ltd.
Acquires Additional Portion of Outstanding Shares- For Further Acceleration of Structural Reform in Areas of Planning and Production ◼ Overview of SanMarino

Copyright © ONWARD HOLDINGS CO., LTD.

✓ Company Profile ：SanMarino is a trading company specialized in textiles that is engaged in the business of planning,proposal, and OEM (original equipment manufacturing) of women’s clothing. SanMarino is theCompany’s main business partner with extensive information gathering and material procurement
capabilities and a production network in Asia and Europe, SanMarino has long built a relationshipof trust with the Company as its main customer.
✓ Net sales: 13.7 billion yen (fiscal year ended June 2022)✓ Number of employees: 158 employees (including seconded employees, as of June 2022)✓ Our stake: 34.0% (5.1% before change)◼ Purpose of the capital and business alliance✓ Having formed a capital and business alliance with SanMarino in 2021, the Company has worked
to further strengthen its planning and production bases, which serve as a source ofcompetitiveness as an apparel maker.
✓ Through the acquisition of an additional portion of outstanding shares in SanMarino, we will further
promote PLM (Product Lifecycle Management), which is a platform for product planning,production and distribution, and aim to strengthen its foundation for the kind of sustainable
manufacturing that meets the needs of the times, which does not generate excess inventory, andserves to connect production, stores, e-commerce websites, and customers.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

18

05
Copyright © ONWARD HOLDINGS CO., LTD.

Appendix© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

19
19

Brand Business
Nijyusanku 【Onward Kashiyama】
Onward Kashiyama’s core brand,
Nijyusanku, continued its strong sales
growth from the previous fiscal year due
to the evolution of “standard items,” which
are the strengths of the brand.

Q1

Sales
(YoY)

+

19.5%

Copyright © ONWARD HOLDINGS CO., LTD.

PET PARADISE【Creative Yoko】

Measures to open new stores
were successful. PET PARADISE
Harajuku Takeshita-Dori store andtwo outlet stores all exceeded
forecasts significantly. The
Harajuku Takeshita-Dori store wasboosted by inbound sales.

Q1

Sales
(YoY)

+

16.4%

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

20

GOTAIRIKU 【Onward Kashiyama】
For the men’s suits brand
GOTAIRIKU, net sales were
driven by an increase in the shareof high-priced pattern-made suits
and an increase in the customer
unit price. It also contributed to anincrease in gross profit.
Q1

Sales
(YoY)

Chacott+

11.2%【Chacott】

Sales of the Chacott
COSMETICS businessincreased significantly. Balletand fitness also remained
strong. In cosmetics, Chacott
strengthened its promotional
efforts, focusing on its facecolor palettes.
Q1

Sales
(YoY)

+

6.0%

Brand Business
UNFILO / Steppi 【Onward Kashiyama】
UNFILO, which has created big hit products since its debut
in 2021 and approximately doubled its net sales in FY2022,
continued signif icant sales growth in Q1. Increased use of
OMO services and the creation of hit products contributed to
growth of net sales f or both EC and stores.
“steppi,” which made its debut as UNFILO’s shoe line in
2022, became an independent brand in 2023. The brand has
pursued comf ort and f unctionality as knitted shoes, andreceived the Good Design Award.

Q1

Sales
(YoY)

+

96.3%

Copyright © ONWARD HOLDINGS CO., LTD.

KASHIYAMA 【 Onward Personal Style】
Sales of directly managed stores increased signif icantly.
The Kichijoji store, revamped as one of the largest
stores in Tokyo in April 2023, perf ormed better thanplanned. Customers increased signif icantly, and thecustomer unit price also increased.
Businesses f or corporate clients also contributed to asales increase by winning deals f or company unif orms,
which have recovered af ter the COVID -19 pandemic.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

21

Q1

Sales
(YoY)

+

33.6%

OMO Service “Click ＆ Try”
◼ The number of stores that introduced the “Click & Try” service increased by 70 stores from the end of
the same period of the previous fiscal year to 360 stores, and the adoption rate increased to 51%.
◼ The number of reservations increased by 184% to 37,000 reservations YoY.
◼ Net sales at existing stores that introduced the service exceeded those for 2019 before the COVID -19
pandemic by 13%, and exceeded those at 87% of stores that have not introduced the service by 26
pp.
▍Change in Number of Stores that Introduced Service and Number of Reservations
FY2023Q1

FY2022
Q1

Change％ of Change

Number of stores (stores)

360

290

+70

-

Adoption rate

51%

35%

+15%

-

Number of reservations(thousands ofreservations)

37

13

+24

+184%

Copyright © ONWARD HOLDINGS CO., LTD.

▍Comparison of net sales between stores that introduced and have not introduced the service (vs. 2019)72
Vs. 2019
Stores that introduced
the service
Stores that have notintroduced the service

千点
FY2023Q1

FY2022
Q1

113%

97%

87%

77%

Effect (net)+26%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

+20%

22

FY2023 Q1 Operating Profit Change Analysis (YoY)▍Operating Profit Change Waterfall(Billion yen)

++0.5
++0.4
++0.8

++0.2

5.4

+-1.1

++0.7
++1.8

Change due to SG&A expenses

2.0

Copyright © ONWARD HOLDINGS CO., LTD.

Change due to gross profit

2022 Q1
operatingprofitIncrease ingross profit
due toincreasedsales forOnwardKashiyama

Increase ingross profit
due toimprovedgross profit
margin for
OnwardKashiyama

Increase ingross profit
due toincreasedsales forotherdomestic
businesses© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

23

Increase ingross profit
due toimprovedgross profit
margin forotherdomestic
businesses

Increase ingross profit
for overseas
businesses

Decrease inoperatingprofit due toincrease instore rent andother saleslinked
expenses

Increase inoperatingprofit due todecrease in
fixed
expenses

2023 Q1
operatingprofitFY2023 Q1 : Net Sales & Operating Profit by Company
Q1(Million yen)

1

Onward Kashiyama+HD

2

Onward Trading

Net Sales
Operating Profit
Net Sales
Operating Profit

3

IslandNet Sales
Operating Profit

4

Domestic Apparel Total

Net Sales
Operating Profit

5

Chacott

Net Sales
Operating Profit

6

Creative Yoko

Net Sales
Operating Profit

7

YamatoNet Sales
Operating Profit

8

Domestic Lifestyle Total

9

Domestic Subtotal

Net Sales
Operating Profit
Net Sales
Operating Profit

10

EuropeNet Sales
Operating Profit

Copyright © ONWARD HOLDINGS CO., LTD.

11

America

Net Sales
Operating Profit

12

Asia

Net Sales
Operating Profit

13

Overseas Subtotal

Net Sales
Operating Profit

14

Consolidated Total

Net Sales
Operating Profit

FY2022
26,135
1,752
3,822
461
1,465
40
33,443
2,137
2,302
133
1,265
70
5,153
301
9,808
744
43,251
2,881
2,318
- 280
286
- 194
1,128
- 139
3,732
- 613
44,551
2,005

Change+3,039+1,944
+643
+266
+56
- 23
+4,117+2,467
+138
+146
+208
+51
+475
+397
+731
+512
+4,848+2,979
+297
+116
+155
+102
+312
+144
+764
+362
+5,356+3,375% of Change+11.6%+111.0%+16.8%+57.7%+3.8%- 57.5%+12.3%+115.4%+6.0%+109.8%+16.4%+72.9%+9.2%+131.9%+7.5%+68.8%+11.2%+103.4%+12.8%

Note: Figures for each segment are simple sums of the subject companies. Consolidated totals are after eliminating intergroup transactions.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

24

FY202329,174
3,696
4,465
727
1,521
17
37,560
4,604
2,440
279
1,473
121
5,628
698
10,5391,256
48,099
5,860
2,615
-164
441
- 92
1,440
5
4,496
- 251
49,9075,380+54.2%+27.7%+20.5%+12.0%+168.3%

FY2023 Q1 : Net Sales by Channel◼ Net sales at physical stores total (department stores, shopping centers and other) increased by
12% YoY.
◼ E-commerce sales increased by 8% YoY. The e-commerce ratio and the directly managed ecommerce ratio remained at a high level at 28% and 86%, respectively.

7,523

29,174

25.8%

86.7%

3.4%

25.8%

100.0%+9.1%+13.4%+9.7%+11.6%- 0.5%- 0.4%

PhysicalStores Total

Directly
Managed ECommerce

Other ECommerce
Platforms

E-Commerce
Total

Onward Kashiyama

12,0099,642

21,651

6,525

998

2

% of Sales

41.2%

33.0%

74.2%

22.4%

3

YoY

+9.9%

+15.4%+12.3%

1

Copyright © ONWARD HOLDINGS CO., LTD.

Directly
Managed ECommerce
Ratio

Shopping
Centers and
Other(Million yen)

4

Eight Domestic
Subsidiaries Using
E-Commerce*

2,504

6,418

8,922

3,646

645

4,291

13,213

32.5%

85.0%

5

Total Domestic
Subsidiaries Using
E-Commerce

14,513

16,06030,573

10,171

1,643

11,81442,387

27.9%

86.1%

- 0.7%- 0.3%

6% of Sales

34.2%

37.9%

72.1%

24.0%

3.9%

27.9%

100.0%

7

YoY

+7.6%

+16.2%+11.9%+7.8%+10.8%+8.2%+10.9%*Note: Total of eight domestic subsidiaries using e-commerce(Island, Tiaclasse, Onward Personal Style, Chacott, Creative Yoko, Yamato, Intimates, KOKOBUY)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

25
25

Total Sales

E-Commerce
Ratio

Department
StoresFY2023 1H / Full-Year : Consolidated Preformance Forecasts(Compared to Initial Forecast)◼ Net sales in the first half are estimated to reach 90 billion yen, up 3.8 billion yen (+4.4%) fromthe initial forecast. Operating profit is forecast to be 4 billion yen, up 3 billion yen (+300.0%),
while recurring profit is expected to be 3.4 billion yen, up 2.7 billion yen (+385.7%) and net
profit at 2.4 billion yen, up 1 billion yen (+71.4%).
◼ The Company maintains its initial forecasts for the second half.
(Million yen)

FY2023

Initial Forecast

Change% of Change

FY2023

Initial Forecast

Change% of Change

Net Sales

90,00086,200+3,800+4.4%

188,800

185,000+3,800+2.1%

2Gross Profit

50,98047,600+3,380+7.1%

105,780

102,400+3,380+3.3%（% of Sales）(56.6%)(55.2%)(+1.4%)(56.0%)(55.4%)

SG&A
Expenses

46,98046,600+0.8%

95,78095,400（% of Sales）(52.2%)(54.1%)(- 1.9%)(50.7%)(51.6%)

Operating
Profit

4,000

1,000

+300.0%10,0007,000（% of Sales）(4.4%)(1.2%)(+3.2%)(5.3%)(3.8%)

Recurring
Profit3,400

700+385.7%

9,000

6,300

（% of Sales）(3.8%)(0.8%)(+3.0%)(4.8%)(3.4%)Net Profit

2,400

1,400

+71.4%

5,000

4,000

（% of Sales）(2.7%)(1.6%)(+1.1%)(2.6%)(2.2%)EBITDA※

6,600

3,600

+83.3%

15,10012,100（% of Sales）(7.3%)(4.2%)(+3.1%)(8.0%)(6.5%)

4

5

6

7© Copyright*Note:2007-2015
CO.,LTD.
EBITDA = ONWARD
operating profitHOLDINGS+ depreciation andamortization.

26

Full-Year

1

3

Copyright © ONWARD HOLDINGS CO., LTD.

First Half

+380

+3,000+2,700+1,000+3,000(+0.6%)

+380

+0.4%
(- 0.9%)+3,000+42.9%(+1.5%)+2,700+42.9%(+1.4%)+1,000+25.0%(+0.4%)+3,000+24.8%(+1.5%)

FY2023 1H / Full-Year : Forecast of Net Sales & Operating Profit by Segment(Compared to Initial Forecast)◼ In the domestic apparel segment for the full year, net sales are expected to increase by 2.8
billion yen (+4.5%) and operating profit by 2.1 billion yen (+178.1%) from the initial forecasts.

◼ In the domestic lifestyle segment for the full year, net sales are expected to increase by 0.3
billion yen (+1.4%) and operating profit by 0.3 billion yen (+19.6%).
◼ In overseas businesses for the full year, net sales are expected to increase by 0.7 billion yen(+9.2%) and operating profit/loss is expected to improve by 0.1 billion.
First Half
(Million yen)

1

2

Copyright © ONWARD HOLDINGS CO., LTD.

3

4

5

ApparelLifestyleDomestic Total

Overseas Total

Consolidated Total

FY2023

Change% of Change

FY2023

Initial Forecast

Change% of Change

Net Sales

65,922

63,086+2,836+4.5%

137,803

134,967+2,836+2.1%

Operating
Profit

3,279

1,179

+2,100+178.1%

8,924

6,824

+2,100+30.8%Net Sales

20,557

20,267

+290

+1.4%

41,791

41,501

+290

+0.7%

Operating
Profit

1,968

1,645

+323

+19.6%

3,275

2,952

+323

+10.9%Net Sales

86,47983,353+3,126+3.8%

179,594

176,468+3,126+1.8%

Operating
Profit

5,247

2,824

+2,423+85.8%

12,1999,776+2,423+24.8%Net Sales

8,613

7,886

+727

+9.2%

19,35818,631

+727

+3.9%

Operating
Profit

- 728

- 810

+82

- 300

- 382

+82

Net Sales

90,00086,200+3,800+4.4%

188,800

185,000+3,800+2.1%

Operating
Profit

4,000

1,000

+3,000+300.0%10,0007,000+3,000+42.9%

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

27

Initial Forecast

Full-Year

FY2023 1H / Full-Year : Forecast of Net Sales & Operating Profit by Company◼ In the domestic business for the full year, net sales are expected to increase by 12.1 billion
yen (+7.3%) and operating profit by 4.5 billion yen (+57.6%) from the previous fiscal year.
◼ In the overseas business, net sales are expected to increase by 2.1 yen billion (+12.2%) andoperating profit/loss is expected to improve by 0.8 billion yen from the previous fiscal year.
First Half

(Million yen)
1
2

Onward Kashiyama + HD
Onward Trading

FY2023Island5

Domestic Apparel Total
Chacott
Creative Yoko
YamatoDomestic Lifestyle Total

Copyright © ONWARD HOLDINGS CO., LTD.

10
11
12

Domestic Subtotal
EuropeAmericaAsia+6,749+6.7%

Operating Profit

2,401

332

+2,069+623.2%

6,887

4,524

+2,363+52.2%Net Sales

7,228

6,865

+363

+5.3%

14,96913,650+1,319

+9.7%

750

523

+227

+43.4%

1,350

1,021

+329

+32.2%

2,947

2,970

- 23

- 0.8%

6,341

6,285

+56

+0.9%

34

22

+12

+54.5%

152

80

+72

+90.0%Net Sales

65,92259,704+6,218+10.4%

137,803

128,672+9,131+7.1%

Operating Profit

3,279

484

+2,795+577.5%

8,954

5,014

+3,940+78.0%Net Sales

4,976

4,714

+262

+5.6%

9,473

8,849

+624

+7.1%

530

342

+188

+55.0%

573

342

+231

+67.5%

2,933

2,562

+371

+14.5%

6,246

5,801

+445

+7.7%

184

108

+76

+70.4%

545

419

+126

+30.1%

10,837

10,106

+731

+7.2%

21,836

20,629+1,207

+5.9%

1,018

703

+315

+44.8%

1,827

1,489

+338

+22.7%

20,557

19,155+1,402+7.3%

41,791

38,779+3,012

+7.8%

1,968

1,484

+484

+32.6%

3,275

2,727

+548

+20.1%Net Sales

Net Sales

Net Sales

Net Sales

86,47978,859+7,620+9.7%

179,594

167,451+12,143+7.3%

Operating Profit

5,247

1,968

+3,279+166.6%

12,2297,741+2,423+57.6%Net Sales

4,637

4,244

+393

+9.3%

10,694

9,960

+734

+7.4%

Operating Profit

- 462

- 514

+52

108

- 136

+244

880

759

+121

+15.9%

1,615

1,636

- 21

Operating Profit

- 271

- 407

+136

- 302

- 576

+274

Net Sales

3,096

2,730

+366

7,049

5,654

+1,395

5

- 211

+216

- 106

- 378

+272

19,35817,250+2,108- 300- 1,090+790

Net Sales

Net Sales

Operating Profit

13
14

Overseas Subtotal
Consolidated Total+13.4%+24.7%

8,613

7,733

+880

Operating Profit- 728- 1,132+404

90,00082,166+7,834+9.5%

188,800

176,072+12,728

+7.2%

4,000

193

+3,807+1972.5%

10,0005,214+4,786+91.8%Net Sales
Operating Profit+11.4%- 1.3%Net Sales© Copyright Note:2007-2015
Figures forONWARD
each segmentHOLDINGS
are simple sumsCO.,LTD.
of the subject companies. Consolidated totals are after eliminating intergroup transactions.

28% of Change

101,109

Operating Profit

9

Change107,858

Operating Profit

8

FY2022+11.6%

Operating Profit

7

FY2023+5,364

Operating Profit

6% of Change

46,055

Operating Profit

4

Full-Year

Change51,419Net Sales

Operating Profit

3

FY2022+12.2%

FY2023 Q1 : SG&A Expenses / Items that Affect Net Profit(Million yen)

Presonnel

1

Rent

2

FY2023 Q1

FY2022 Q1

YoY(% of Change)

8,637

8,448

+2.2%

6,881

Transportation

4

Promotion andAdvertising

1,482

926

+60.0%

5

Depreciation

770

982

- 21.6%Other

7

Total SG&A
Expenses

4,208
23,599

1,561

+6.3%

3

6

1,621

6,474

4,322
22,713+3.8%- 2.6%+3.9%

FY2023 Q1

FY2022 Q1

YoY(% of Change)

Operating Profit

5,380

2,005

+168.3%

9 Non-Operating Profit

120

1,046

-88.5%

10

Interest income

35

6

483.3%

11

Foreign exchange gains

860

-

12

Subsidy income

84

-

13

Other

85

95

-10.5%

14 Non-Operating Loss

639

414

54.3%

52

238.5%(Million yen)
8

15Interest expenses

176

16

Foreign exchange loss

352

17

Share of loss of entities
accounted for using equity method

18

Other

19 Total Non-Operating Profit/Loss
20 Recurring Profit【Items that Affect Net Profit】◼

Copyright © ONWARD HOLDINGS CO., LTD.

◼

◼
◼

2

15

-86.7%

109

346-68.5%

-519

632

-

4,861

2,638

+84.3%

1,343

-

1,317

-

25

-

21 Extraordinary Profit

Non-operating profit from interest income,dividends income, etc., was 0.1 billion yen

22Gain on sales of shares ofsubsidiaries and associates

23

Other

Non-operating expenses due to foreignexchange losses, interest expenses, etc. were
0.6 billion yen.

24 Extraordinary Loss

152

459

-66.9%

25

Impairment loss

152

458

-66.8%

26

Other

1

-

Extraordinary loss was 0.2 billion yen due toimpairment loss.

27 Extraordinary Profit/Loss

-152

883

-

28 Profit Before Income Taxes

4,709

3,521

+33.7%

29

Income Taxes - Current

1,278

2,016

- 36.6%30

Prof it (loss) attributable to non-controllinginterests

82

- 317

-

3,348

1,823

+83.6%The income tax ratio decreased because
taxable income is expected to increase in the
future due to better performance and deferred
tax assets were recorded.

© Copyright
ONWARDHOLDINGS
CO.,LTD.
◼ 2007-2015
As a result,net profit
was 3.3
billion yen.

29-

31 Net Profit

FY2023 Q1 : Consolidated Balance Sheet(Billion yen)

1
2

Current Assets

End-FY2022% of Change

164.3

159.1

+5.2

+3.3%

66.1

62.2

+3.9

+6.3%

Reasins for change

Cash and Deposits

13.5

13.8

-0.3

- 2.2%

4

Accounts
Receivable-trade

15.8

13.9

+1.9

+13.7%

Expanded net sales

5

Inventory

32.4

30.7

+1.7

+5.5%

Increased purchase to expand net sales

98.2

96.9

+1.3

+1.3%

Non-current Assets

7

Property, Plant andEquipment

53.1

53.1

+0.0

+0.0%

8

Intangible Assets

9.0

9.1

-0.1

- 1.1%

9Investments andOther Assets

36.0

34.7

+1.3

+3.7%

83.5

74.1

+9.4

+12.7%

10

Total Liabilities

11

Accounts Payabletrade

22.1

21.4

+0.7

+3.3%

12

Borrowings

35.3

27.2

+8.1

+29.8%

13

Other

26.1

25.5

+0.6

+2.4%

80.8

85.0

-4.2

- 4.9%

14

Total Net Assets

15

Shareholder's Equity
Ratio

46.1%

47.0%

-

-0.9%

16

Current Ratio

104.0%

117.2%--13.2%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

30

Change3

6

Copyright © ONWARD HOLDINGS CO., LTD.

Total Assets

End-FY2023 Q1

Increase in shares of affiliates

Short-term borrowings due to need for funds

Decrease in minority interests

FY2023 Q1 : Results by Group
Q1 Results(Million yen)

FY2023

Onward Kashiyama+HD

Domestic Subtotal(Excl. Onward Kashiyama + HD)

Overseas Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

Change％ of Change

1

Net Sales

29,174

26,135+3,039+11.6%

2

Gross Profit

18,324

15,815+2,509+15.9%（% of Sales）(62.8%)(60.5%)

SG&A Expenses

14,62814,063（% of Sales）(50.1%)(53.8%)

3(+2.3%)

+565

+4.0%
(- 3.7%)

Operating Profit

3,696

1,752

（% of Sales）(12.7%)(6.7%)

5

Net Sales

18,925

17,116+1,809+10.6%

6

Gross Profit

9,573

8,346

+1,227+14.7%（% of Sales）(50.6%)(48.8%)

4

7

8(+6.0%)(+1.8%)

7,409

7,217

(39.1%)(42.2%)

Operating Profit

2,164

1,129

（% of Sales）(11.4%)(6.6%)

4,496

3,732

+764

+20.5%+547+38.1%Net Sales

10Gross Profit

1,984

1,437

（% of Sales）(44.1%)(38.5%)

SG&A Expenses

2,235

2,050

（% of Sales）(49.7%)(54.9%)

Operating Profit

- 251

- 613

（% of Sales）

-

-

12

+111.0%（% of Sales）

9

11+1,944

SG&A Expenses© Copyright 2007-2015 ONWARD
HOLDINGS
CO.,LTD.
Note:
Calculated using
simple sums.

31

FY2022+192+2.7%(- 3.0%)+1,035+91.7%(+4.8%)(+5.6%)

+185

+9.0%
(- 5.2%)+362

FY2023 1H / Full-Year : Performance Forecasts by GroupFirst Half
(Million yen)

+ HD

Onward Kashiyama
Domestic Subtotal(Excl.Onward Kashiyama + HD)

Overseas Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

FY2023

FY2022

Change% of Change

FY2023

FY2022

Change% of Change

1

Net Sales

51,41948,740+2,679+5.5%

107,858

105,179+2,679+2.5%

2Gross Profit

31,121

28,812+2,309+8.0%

65,11262,803+2,309+3.7%（% of Sales）(60.5%)(59.1%)(+1.4%)(60.4%)(59.7%)

SG&A Expenses

28,72028,337（% of Sales）(55.9%)(58.1%)

Operating Profit

2,401

475

（% of Sales）(4.7%)(1.0%)

5

Net Sales

35,06034,613+447

6Gross Profit

17,757

17,356+401（ % of Sales）(50.6%)(50.1%)

3

4

7

SG&A Expenses

14,911

15,007（ % of Sales）(42.5%)(43.4%)

Operating Profit

2,846

2,349

（ % of Sales）(8.1%)(6.8%)

9

Net Sales

8,613

7,886

10

Gross Profit

3,827

3,296

（ % of Sales）(44.4%)(41.8%)

8

11

SG&A Expenses（ % of Sales）

12

Operating Profit（ % of Sales）

4,555

4,106

(52.9%)(52.1%)

- 728

- 810

-

-

Note: Calculated using simple sums.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

32

Full-Year+383+1,926- 96+497(+0.7%)+1.4%

58,22557,842(-2.2%)(54.0%)(55.0%)+405.5%

6,887

4,961

(+3.7%)(6.4%)(4.7%)+1.3%

71,736

71,289

+447
+401

+2.3%

36,19335,792(+0.5%)(50.5%)(50.2%)- 0.6%

30,88130,977(-0.9%)(43.0%)(43.5%)+383+1,926

- 96

5,312

4,815
(6.8%)

+727

+9.2%

19,35818,631+727+531+16.1%

8,443

7,912

+531

(+2.6%)(43.6%)(42.5%)

+82

8,743

8,294

(45.2%)(44.5%)

- 300

- 382

-

-

+1.1%
- 0.3%(-0.5%)(7.4%)(+0.8%)+0.6%(+0.3%)(+1.3%)+10.9%+38.8%(+1.7%)+21.2%+449+0.7%(- 1.0%)+497+10.3%(+0.6%)

+3.9%
+6.7%
(+1.1%)

+449

+5.4%
(+0.7%)+82

The information in this presentation is not a solicitation to purchase or sell Onward
Holdings stock. Opinions and forecasts stated herein represent the judgments of thecompany at the time this presentation was prepared. Onward Holdings makes noguarantee regarding the accuracy of the information in this presentation and may
make revisions without prior notice. Onward Holdings and the providers of thisinformation assume no responsibility whatsoever for any losses incurred inassociation with this information.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

33