Onward Group
Medium- to Long-Term Management
VisionONWARD VISION 2030

April 8, 2021

The Onward Group’s Raison D’etre

Enriching and adding color to people’s lives while caring for the planet2

Desired Image of the Onward Group: Evolving into a Customer-CentricCompany, Making the Best Use of Employees’ Diverse Strengths
Up Until the Present

Desired Image

Planning, Production, Distribution

Produce

Sell

IT
Infrastructure

IT
Infrastructure

IT
Infrastructure

Online stores

オンラインストア
Members
Customers

ManagementContent(Mainly apparel)

Employees/Partners

HR system/organization

Conventional physical stores

Plan１CustomersOrganization/
HROMO StoresManagement/
Financialmanagement

B2B

Stylists/ Designers/Pattern makers/
Staff/Partners

Communication between customers and employees
tends to be indirect and one-way, resulting in awidening of the gap between value provided and thevalue that customers are seeking

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Achieve direct and two-way communication between
customers and employees to co-create value
provided to customers

Growth Roadmap
Transforming thebusiness modelMoving forward with thefull-blown growth strategy(amid COVID-19)(post-COVID-19)(Billion yen)Lifestyle

300.0

ApparelSales200.0

190.5
40.821%50.025%149.779%150.075%

FY02/22

OperatingProfit

7.0
2.2221.0

FY02/22ROE
44.564%2.536%

69%

31%

FY02/24

Approx. 8%

33%

200.0

67%

FY02/31

FY02/24

3.2

100.0

25.0

(Billion yen)

15.0

60%

10.0

40%

FY02/31

10% or more

Aim to achieve sales and operating profit growth by expanding the Lifestyle
Segment while transforming the business model of the Apparel Segmentwith a view to the post-COVID era.

Business Segments
Customers (Individuals and Corporate Clients)

Apparel Segment

Lifestyle SegmentB2C

Wellness

Unique Value

Beauty & Cosmetics

Pet & Home Life

Product Services

Gourmet Foods

Platform Services

Gifts

B2B

B2C

Neo Business Model

B2B

Business Segments

High-Quality Standard

Group Platforms (Systems)
Onward Holdings

Grow the Lifestyle Segment to be a core business on par with
the Apparel Segment.
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Management Platforms (Systems)
Customers (Individuals and Corporate Clients)

Apparel Segment

Lifestyle Segment

Product planning, production, and distribution platform
Group Platforms(Systems)

Sales platform (Onward Crosset/OMO stores)
Marketing platform (Onward Members)
Management and financial management platform
Organizational and HR platform
Onward Holdings

Build up-to-date Group platforms (systems) to enhance Group synergy
6Five Strategies toward FY02/31
Targeting sales of 300 billion yen and operating profit of 25 billion yen in FY02/31

Five Strategies

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Transform the Apparel Segment business model2

Accelerate growth in the Lifestyle Segment

3

Strengthen B2B business4

Evolve into a company where diverse and uniquepersonnel can exhibit their strengths

5Promote sustainable managementthat pursues coexistence with the environment

1Transform the Apparel Segment Business Model:
Three Main Policies(1) Transform communication with customers

Build a community that grows autonomously andco-create value with customers(2) Transform product planning, production, and distribution

Digitalize the production process to improve
speed, price optimization, and traceability(3) Transform sales*OMO = Online merges with offline

Develop OMO* stores that combine theadvantages of physical and online stores.

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Transform the Apparel Segment Business Model:
Brand Groups Developed under the Apparel Segment (B2C)

High-Quality Standard BusinessA group of brands that create“evolving staples” bybalancing quality and price,made possible by production
expertise cultivated overmany years

9Unique Value Business

Neo-Business-Model BusinessA group of one and only
brands that continue toattract customers bycommunicating a strong
individuality and worldview

A group of brands thatprovide innovative customer
experiences through a new
business model that utilizes
the latest digital technologies.
We aim to make these brands
the core of our futurebusiness.

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Transform the Apparel Segment Business Model:(1) Transforming Communication with Customers
Up Until the Present

Desired Image for FY02/31

Indirect, one-way communication,
distancing customers

Community where customers growautonomously through directcommunications between customers andemployees, and through interactions amongcustomers

Distant connections to customers (indirect)

A community that grows autonomously
Onward staff

Limited Pointsof Contact
Product development,
personalization, made-toorder production

PhysicalStores

Direct communication
with customers

Customers

Customers
bring newcustomers

Customers

OnwardMass Media(TV Commercials,Magazine Ads, Etc.)

Communication using
owned media and social
media sites
Service provided bypersonal stylists

New approaches such aslive commerce

Use owned media, social media, and live commerce to promote value co-creation throughdirect and two-way communication between customers and employees.
101Transform the Apparel Segment Business Model:(2) Transforming Product Planning, Production, and Distribution
Up Until the Present

Desired Image in FY02/31

A divided, opaque, and inefficient
supply chain

A streamlined supply chain with processes
made explicit based on data-sharing anddata-linking

PlanProcure

Produce

Distribute

Tradingcompanies

Sell

Textile trading
companies

Retailers

Trading Companies
OnwardTextile trading
company

Garment
manufacturers

Yarn
manufacturers

Weavingfactories

Fabricmanufacturers

OnwardLogistics
companies

Logistics
companies

OnwardYarn
manufacturers

Retailers
Fabricmanufacturers

Garment
manufacturers

Weaving factories

Shorten delivery periods, optimize prices, and improve traceability through visualizationof processes and promotion of data-linking while digitalizing the supply chain.
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1Transform the Apparel Segment Business Model:(3) Transforming SalesOMO Stores*In B2C Areas

Physical Stores➢ Limited store inventories➢ Limited store hours andlocations➢ Some customers feel annoyed bysales staff and are unable toshop at their own pace

Location Strategyfor OMO Stores
Shift from urban centers to abalance between urban andsuburban locations➢ Can shop while enjoying theatmosphere of stores➢ Can touch and try on items➢ Can be helped by stylists➢ Can take purchased products
home right away

➢ Operates 24/7, all year round➢ Can purchase from anywhere➢ Can select products fromnearly the entire inventory➢ Select a stylist you like➢ Can shop at your own pace

E-Commerce Sales Target
for FY02/31
100 billion yen(e-commerce ratio of 50%*)➢ Cannot touch products or feelthe atmosphere of stores➢ Cannot try on items➢ Cannot receive customer service➢ Lead times until products makeit to the customer

Online StoreUse OMO format that combine services provided at physical and online stores tomaximize the advantages of each for customers
122 Accelerate Growth of the Lifestyle Segment
Create Synergy Withinthe Group
経営資源の重点配分
Prioritized allocationof management
resources

Improve brand value

Wellness

Beauty &Cosmetics

テキスト
テキストテキストテキスト
Gourmetテキストテキストテキスト Gifts
Foods
Pet &Home Life

Expand communityand sales channels

Promote M&A

The five businesses of the Group’s Lifestyle Segment show steady results even amid theCOVID-19 pandemic. We will vigorously push forward with our growth strategy for the postCOVID world with the Lifestyle Segment as our core segment.
132Accelerate Growth of the Lifestyle Segment:
Strategy of Leading Companies in Different Areas
Wellness businessBusiness:
Comprehensive business development including thesale of ballet/dance goods and cosmetics, and theoperation of ballet schools

Beauty & Cosmetics businessBusiness:
Dealing in the “product,” an organic haircare andskincare brand✓ Continue to develop the traditional core balletbusiness, while strengthening brands appealing towellness (Chacott Balance and Chacott Cosmetics) toexpress the worldview of the brand philosophy, “Makelife beautiful from the inside out.”✓ Accelerate expansion of product categories in skincare
and body care

✓ Scheduled opening of a next-generation global
flagship store in Daikanyama in spring 2022

✓ Quickly establish a status as an organic cosmetics
brand14✓ Expand physical and online sales channels (includingglobal development) and increase brand recognition
through PR including collaborations

2Accelerate Growth of the Lifestyle Segment:
Strategy of Leading Companies in Different Areas

Pet & Home Life business

Gourmet Foods businessBusiness:
Development of comfort goods andpet-related products

Business:
Operation of a high-quality
e-commerce site for gourmet foods✓ Expand selection of everyday
goods to enhance people’s lives as
they spend more time at home

✓ Contribute to enhancing
customers’ “home time” andexpanding sales channels for
producers✓ Enhance the value and uniquenessof the site by expanding categories
handled and developing originalproducts✓ Plan to begin cross-border ecommerce of delicious and safe
Japanese gourmet foods✓ Enhance the lineup of cat products
in addition to mainstay dog
products✓ Launch “Hinami,” a lifestyle brandfor hygienic and safe living

15Gifts businessBusiness:
Development of a gift solutions
featuring gift catalogues✓ Strengthen direct online sales andenter the “social gift” market,
which is expected to grow

✓ Provide new value to customers bydeveloping new products andservices

3 Strengthen B2B Businesses

Product Services business

Platform Services business(for general corporate clients)(for retailers and the apparel industry)

Provides uniforms, promotional
products, and services to generalcorporate clients. Assets shared within
the Group to maximize synergies.

OEM/ODM business for retailers and theapparel industry. Utilizes product planning,production, and distribution platforms thatare visualized and streamlined throughinformation sharing and data-linking.

Onward Trading’s uniform businessKashiyama Dalian

These businesses have been robust even amid the COVID-19 pandemic.
We position them as stable growth businesses in the post-COVID era,and target sales of 60 billion yen (20% of total sales) in FY02/31.
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4Evolve into a Company Where Diverse and Unique Personnel CanExhibit Their Strengths
Promote theactivities of diverse
personnel

Achieve a flatorganization(achieve 50% women in
leadership positions byFY02/31, and othergoals)

Diversify
workstyles

Organizational andHR platform reform

Transfer
authority to
the job site

Fair, multifaceted
evaluations
andperformancebased
compensation

Offer multiple
career paths
and personnel
development

By training in-house personnel who will spearhead change, or recruiting personnel
externally, and promoting organizational and HR platform reform, we will evolve into acompany where diverse and unique personnel can play an active role.
175 Promote Sustainable Management that Pursues Coexistence with the Environment
Example: Find more ways to use
recovered products(blanket donations incooperation with theJapanese Red Cross
Society, stepping up theReuse Park initiative)

Example: Expand the made-to-order businesscentered on Kashiyama DalianEliminate
wastefulproduction(Expand made-toorder production)

Main initiatives
toward sustainablemanagement

Recover andreuse products

Example: Increase awareness offactory audits at the Japan
Apparel Quality Center

Improve
traceability

We will establish an organization dedicated to the promotion of sustainable management in FY02/22 andadvance efforts in this direction based on the recognition that sustainable management is an important
ideal that underpins our corporate activities.
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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.

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