Consolidated Financial Results
for the Fiscal Year Ended February 28, 2022
[Japanese GAAP]
April 7, 2022
Company name: Onward Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Securities code: 8016
URL: https://www.onward-hd.co.jp/site/english/
Representative: Michinobu Yasumoto, President and CEO
Contact: Osamu Sato, Director in charge of Finance, Accounting, Investor relations
Phone: +81-3-4512-1030
Scheduled date of Annual General Meeting of Shareholders: May 26, 2022
Scheduled date of commencing dividend payments: May 27, 2022
Scheduled date of filing annual securities report: May 27, 2022
Availability of supplementary materials on financial results: Available
Schedule of financial results briefing session: Scheduled (for institutional investors, securities analysts, and the press)(Amounts of less than one million yen are rounded down.)
1. Consolidated Performance for the Fiscal Year Ended February 28, 2022 (March 1, 2021 - February 28, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Recurring profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
February 28, 2022
168,453(4.2)(1,079)
–
507
–
8,566
–
February 28, 2021
175,899 (29.1)(20,173)–(20,174)–(23,181)–(Note) Comprehensive income: Fiscal year ended February 28, 2022: 11,657 million yen [–%]
Fiscal year ended February 28, 2021: (20,032) million yen [–%]
DilutedRatio ofRatio of
Basic earnings
Return on
earnings
recurring profit operating profit
per share
equityper share
to total assets
to net sales
Fiscal year ended
Yen
Yen
%
%
%
63.17
63.04
13.9
0.3
(0.6)
February 28, 2022
February 28, 2021
(171.18)–(31.6)(9.4)(11.5)(Reference) Share of profit (loss) of entities accounted for using equity method:
Fiscal year ended February 28, 2022: (73) million yen
Fiscal year ended February 28, 2021: (70) million yen
EBITDA (operating profit + depreciation and amortization):
Fiscal year ended February 28, 2022: 3,915 million yen [–%]
Fiscal year ended February 28, 2021: (14,133) million yen [–%]
(Notes) 1. The Company has applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and “Implementation Guidance on Accounting Standard for Revenue Recognition”(ASBJ Guidance No. 30, March 26, 2021) early, from the beginning of the fiscal year under review.
2. The presentation method has been changed from the fiscal year under review, and therefore, with regard
to net sales, operating profit, and EBITDA in the Consolidated Operating Results, the Company states
figures and year-on-year changes after reclassification that reflect this change in the presentation method.

(2) Consolidated Financial Position
Total assets

Shareholders’equity ratio

Net assets

Million yen

Million yen

157,727
As of February 28, 2022
77,257
196,052
As of February 28, 2021
59,509(Reference) Shareholders’ equity: As of February 28, 2022: 66,886 million yen
As of February 28, 2021: 56,723 million yen(3) Consolidated Cash Flows

Net assets per share
%

Yen

42.4
28.9

493.14418.32

Cash and cash
equivalents
at end of period

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

7,814(19,614)

21,685
6,091(36,173)
5,860

15,19921,270Fiscal year ended
February 28, 2022
February 28, 2021
2. Dividends
1stquarterend
Fiscal year ended
February 28,
2021
Fiscal year ended
February 28,
2022
Fiscal year ending
February 28,
2023 (Forecast)

Annual dividends per share
2nd
3rd
Yearquarter- quarterend
end
end

Total

Total
dividends(annual)Ratio of
Payout ratio dividends to(consolidated)
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–

–

–

12.00

12.00

1,627

–

2.1

–

–

–

12.00

12.00

1,627

19.0

2.4

–

–

–

12.00

12.00

95.7

3. Consolidated Performance Forecast for the Fiscal Year Ending February 28, 2023 (March 1, 2022 - February
28, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic
Net sales
Operating profit
Recurring profit
to owners ofearnings perparentshare
Million yen%

Million yen%

Million yen% Million yen%

Yen

1H (cumulative)
77,000 (4.7)(1,800)–(1,750)–(1,250)–(9.22)
Full year
168,700 0.1
2,100–2,050 304.1
1,700(80.2)
12.54(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 28, 2023 (forecast): 7,080 million yen [180.8%]
Full year ended February 28, 2022: 3,915 million yen [–%]* Notes:(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries resulting
in changes in scope of consolidation): None
Newly included: – (Company name:)
Excluded:– (Company name:)(2) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement: None(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares):
As of February 28, 2022:
157,921,669 shares
As of February 28, 2021:
157,921,669 shares2) Total number of treasury shares at the end of the period:
As of February 28, 2022:
22,287,771 shares
As of February 28, 2021:
22,322,123 shares
3) Average number of shares outstanding during the period:
Fiscal year ended February 28, 2022:
135,619,330 sharesFiscal year ended February 28, 2021:
135,420,529 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (March 1, 2021 - February
28, 2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating profit
Recurring profit
Net income
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
February 28, 2022
14,47827.5
10,799
54.5
5,345
–
8,525
–
February 28, 2021
11,356
8.0
6,989
17.7
(3,170)–(22,397)–

Fiscal year ended
February 28, 2022
February 28, 2021

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

62.87
(165.39)62.74–(2) Non-consolidated Financial Position
Total assets
Million yen

Net assets

Shareholders’equity ratio

Million yen

As of February 28, 2022
134,254
78,861
As of February 28, 2021
162,749
71,275(Reference) Shareholders’ equity: As of February 28, 2022: 78,739 million yen
As of February 28, 2021: 71,136 million yen

Net assets per share
%

Yen

58.6
43.7

580.53524.61* These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm.
* Explanation of the proper use of performance forecast and other notes
The performance outlook and other forward-looking statements herein are based on information currently available
to the Company and certain assumptions that have been deemed reasonable. Actual performance may differ
significantly from these forecasts due to a wide range of factors. For conditions used as the assumptions for the
performance forecast and notes on the use of performance forecast, please refer to “1. Overview of Operating
Results, etc.” on page 2 of the Attachments.

Table of Contents - Attachments
1. Overview of Operating Results, etc. .................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review .................................................. 2(2) Overview of Financial Position for the Fiscal Year under Review ................................................. 3(3) Overview of Cash Flows for the Fiscal Year under Review ............................................................ 3(4) Basic Policy on Shareholder Returns and Dividends for the Fiscal Year under Review and the Next
Fiscal Year ............................................................................................................................................ 4(5) Future Outlook ................................................................................................................................ 4
2. Basic Policy on Selection of Accounting Standards ............................................................................ 4
3. Consolidated Financial Statements and Principal Notes ..................................................................... 5(1) Consolidated Balance Sheets .......................................................................................................... 5(2) Consolidated Statements of Income and Comprehensive Income .................................................. 7(3) Consolidated Statements of Changes in Equity .............................................................................. 9(4) Consolidated Statements of Cash Flows ....................................................................................... 13(5) Notes to Consolidated Financial Statements ................................................................................. 15(Uncertainties of entity’s ability to continue as going concern) ............................................... 15(Significant accounting policies for preparation of Consolidated Financial Statements) ........ 15(Changes in accounting policies) ................................................................................................ 19(Changes in the presentation method) ........................................................................................ 21(Notes to Consolidated Statements of Income) ........................................................................... 21(Notes to Consolidated Statements of Comprehensive Income) .............................................. 22(Notes to Consolidated Statements of Changes in Equity) ........................................................... 23(Notes to Consolidated Statements of Cash Flows) ..................................................................... 25(Segment information, etc.) ...................................................................................................... 26(Per share information) ............................................................................................................. 31(Significant events after reporting period) ............................................................................... 33(Omission of disclosure) .......................................................................................................... 35
4. Others ................................................................................................................................................ 36
Changes in officers ................................................................................................................... 36

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review (from March 1, 2021 to February 28, 2022), the Japanese economy remainedin a difficult situation due to the prolonged impact of COVID-19, such as stay-at-home due to the application of
the priority measures such as for prevention of the spread of disease taken throughout Japan on account of therapid spread of the Omicron variant and rising prices of raw materials, even though an increase in vaccination
rates temporarily halted the spread of infection.
In these circumstances, the Group has steadily promoted the integration of physical stores and e-commerce
as a priority measure in the Apparel Business and expanded the number of OMO (Online Merges with Offline)type stores which introduced the Click and Try system, as well as reduced lost sales opportunities caused by outof stock items through full-scale operation of an integrated inventory management system, thus realizing net
sales growth and higher gross profit margins in both existing physical stores and e-commerce.
Due to the achievements, etc. of global business reforms that have been conducted since the fiscal year
ended February 28, 2020, such as withdrawals from unprofitable businesses and unprofitable stores, operating
profitability significantly improved. Thanks to efforts at restoring financial health mainly by securitizing noncurrent assets and streamlining fund management, the shareholders’ equity ratio increased 13.5pt year-on-year
to 42.4%.
As a result of the above, consolidated net sales amounted to 168,453 million yen (a 4.2% decrease year-onyear), a consolidated operating loss was recorded at 1,079 million yen (an operating loss of 20,173 million yen
for the previous fiscal year), a consolidated recurring profit was recorded at 507 million yen (a recurring loss of
20,174 million yen for the previous fiscal year), and profit attributable to owners of parent amounted to 8,566
million yen (a loss attributable to owners of parent of 23,181 million yen for the previous fiscal year).
Furthermore, the Group has adopted EBITDA (operating profit + depreciation and amortization) as amanagement indicator with the purpose of enabling convenient comparisons between companies regardless ofdifferences in accounting standards, amid its efforts to accelerate growth through enhancement and expansion ofbusiness foundations that utilize creation of new businesses, M&A, etc.
EBITDA for the fiscal year under review was 3,915 million yen ((14,133) million yen for the previous fiscal
year).
Status by segment is as follows.
[Apparel Business]
In the domestic business, Onward Kashiyama Co., Ltd., which is a core group company, withdrew from
unprofitable businesses and unprofitable stores and steadily executed sales strategies such as expanding OMOtype stores. As a result, it increased net sales and significantly reduced losses. Despite a decrease in sales at
Onward Trading Co., Ltd., which conducts a B2B business, profit increased owing to robust net sales in thehighly profitable uniform business. Sales also grew at Tiaclasse Co., Ltd., whose main sales channel is ecommerce, and at Onward Personal Style Co., Ltd., which is developing the KASHIYAMA made-to-order suitbrand that has garnered high praise in this year’s job-hunting season.
In the overseas business, due mainly to withdrawal from unprofitable businesses under the global businessreforms, profitability improved, and the profit and loss improved significantly.
As a result, the loss was significantly reduced despite a decrease in sales for the Apparel Business as awhole.
[Lifestyle Business]
Sales increased significantly, and profitability was restored at Chacott Co., Ltd., which operates a wellness
business, due to the recovery of orders received for its mainstay ballet products, which faced severe
circumstances due to the impact of COVID-19 in the previous fiscal year. Sales and profit increased at Yamato

2

Co., Ltd., which conducts a gift business, at Creative Yoko Co., Ltd., which is engaged in a pet business, and at
KOKOBUY Co., Ltd., which conducts a beauty and cosmetics business.
Meanwhile, sales continued to decrease at Onward Beach Resort Guam, Inc., which operates a resort
business in Guam, due to a sharp decline in visitors to Guam.
As a result, both sales and profit increased for the Lifestyle Business as a whole.

(2) Overview of Financial Position for the Fiscal Year under Review
Total assets on a consolidated basis as of the end of the fiscal year under review decreased by 38,324 million yen
compared with the end of the previous fiscal year to 157,727 million yen. This was primarily due to decreases
in cash and deposits of 6,091 million yen, notes and accounts receivable—trade of 4,123 million yen,merchandise and finished goods of 5,000 million yen, buildings and structures of 1,308 million yen, and land of
11,887 million yen.
Liabilities decreased by 56,073 million yen compared with the end of the previous fiscal year to 80,470
million yen. This was primarily due to decreases in short-term borrowings of 37,861 million yen, long-term leaseobligations of 7,939 million yen, notes and accounts payable—trade of 7,110 million yen, and long-termborrowings of 4,053 million yen.
Net assets increased by 17,748 million yen compared with the end of the previous fiscal year to 77,257
million yen. This was primarily due to profit attributable to owners of parent of 8,566 million yen, dividends ofsurplus of 1,627 million yen, and an increase in retained earnings at the beginning of the period due to changes
in the accounting policies of 272 million yen.
As a result, the shareholders’ equity ratio was 42.4%.
(3) Overview of Cash Flows for the Fiscal Year under Review
1) Status of cash flows as of the end of the fiscal year under review
Cash flows provided by operating activities amounted to 7,814 million yen (an outflow of 19,614 million yen
for the previous fiscal year) mainly due to a profit before income taxes, an impairment loss, a decrease in tradereceivables, and a decrease in trade payables.
Cash flows provided by investing activities amounted to 21,685 million yen (an inflow of 6,091 million yen
for the previous fiscal year) mainly due to proceeds from sales of property, plant and equipment and sales ofshares of subsidiaries resulting in change in scope of consolidation.
Cash flows used in financing activities amounted to 36,173 million yen (an inflow of 5,860 million yen forthe previous fiscal year), which primarily included a net increase (decrease) in borrowings and repayment oflong-term borrowings.
As a result, cash and cash equivalents at the end of the fiscal year under review decreased by 6,070 million
yen compared with the end of the previous fiscal year to 15,199 million yen.

32) Indicators related to cash flows
Fiscal year
ended February
28, 2018
Shareholders’
59.2
equity ratio (%)
Shareholders’equity ratio
46.8
based on fairvalue (%)
Ratio ofinterest-bearing
350.6
debt to cash
flow (%)
Interest
40.9
coverage ratio(times)Fiscal year
ended February
28, 2019

Fiscal year
ended February
29, 2020

Fiscal year
ended February
28, 2021

Fiscal year
ended February
28, 2022

55.1

38.3

28.9

42.4

30.1

30.1

17.4

23.8

1,409.8875.8(461.1)

492.3

12.6

17.4

(46.5)

18.3

Shareholders’ equity ratio:
Shareholders’ equity / Total assets
Shareholders’ equity ratio based on fair value: Total market value of shares / Total assets
Ratio of interest-bearing debt to cash flow:
Interest-bearing debt / Cash flow
Interest coverage ratio:
Cash flow / Interest paid
(Note 1) All indicators were calculated using consolidated financial figures.
(Note 2) The total market value of shares was calculated based on the total number of issued shares excluding

treasury shares.
(Note 3)(Note 4)

Cash flows from operating activities are used.
Interest-bearing debt includes all debt recorded on the Consolidated Balance Sheets for which interest is
paid.

(4) Basic Policy on Shareholder Returns and Dividends for the Fiscal Year under Review and the Next Fiscal
Year
The Company positions returning profits to its shareholders as one of the most important management measures,with the basic policy to provide stable and appropriate shareholder returns linked to performance.
With regard to dividends for the fiscal year under review, despite the extremely poor performance, theCompany plans to pay out a dividend of 12 yen per share in light of its basic policy regarding dividend policy.
The Company will determine whether to conduct a share buyback by taking into account factors such as its needs
for funds.
The Company will flexibly utilize its internal reserve for strategic investments in the establishment of arobust business structure, enhancement of financial constitution, and other efforts while giving consideration tobalancing its needs for funds.
(5) Future Outlook
For future outlook, please refer to “FY02/22 Results Presentation Supplement” announced today.

2. Basic Policy on Selection of Accounting Standards
In consideration of comparability between each reporting period of Consolidated Financial Statements andcomparability between companies, the Group plans to prepare its Consolidated Financial Statements using theJapanese GAAP for the time being.
The Group plans to appropriately handle the adoption of IFRS (International Financial Reporting Standards)
in consideration of various circumstances in Japan and overseas.

4

3. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Million yen)
As of February 28, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
Notes and accounts receivable—trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of February 28, 2022

21,301
18,251

15,209–14,20428,909
1,010
4,435
6,829
(277)
80,46023,908
449
2,478
4,509
(252)
60,50861,909(37,592)
24,31635,2599,969(5,618)4,351
26,766(18,868)
7,898
71,82558,027(35,019)
23,00823,371
9,998(6,239)3,759
25,158(17,254)
7,903
58,042

5,251
5,416
10,667

4,631
4,717
9,349

14,312
1,662
440
2,814
7,486
6,674
(292)
33,099115,592
196,052

14,117
1,683
524
3,248
4,338
6,078
(163)
29,827
97,219157,727–

(Million yen)
As of February 28, 2021
Liabilities
Current liabilities
Notes and accounts payable—trade
Electronically recorded obligations—operating
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors
Provision for sales returns
Provision for point card certificates
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities for land revaluation
Retirement benefit liability
Provision for retirement benefits for directors andcorporate auditors
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of February 28, 2022

13,4728,484
56,566
5,052
2,040
669
589
25
125
636
11,887
99,5496,361
11,86018,705
4,053
854
2,022
626
50

16,43011,615761
3,482

12,377
3,676
241
2,858

232

247

1,661
2,809
36,993
136,543

2,503
2,804
24,70980,47030,07950,3909,321(20,865)
68,92630,07950,39015,391(20,831)75,030(1,939)15(7,864)(1,669)(744)(12,202)138
2,646
59,509196,052(1,646)
1(5,698)(328)(472)(8,144)122
10,24877,257
157,727––
11,22555,761

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of salesfloor fixtures, etc.
Foreign exchange losses
Share of loss of entities accounted for using equity
methodNon-deductible consumption taxes
Other
Total non-operating expenses
Recurring profit (loss)
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Gain on sales of shares of subsidiaries and associates
Subsidies for employment adjustment, etc.
Other
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Loss on sales of shares of subsidiaries and associates
Impairment loss
Loss on liquidation of subsidiaries and associates
Loss on liquidation of business
Extraordinary loss due to closing and other
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

For the fiscal year ended
February 28, 2021
175,899
105,196
70,70290,876(20,173)

For the fiscal year ended
February 28, 2022
168,453
80,841
87,612
88,691(1,079)

55
193

52
1,340
99
1,013
917
3,423

–
884
820
1,954
595
213
443

391
96

70

73

166
466
1,955
(20,174)

252
1,022
1,836
507

8
8,416
154
1,696
237
10,513105
17,921
2,944
289
67
21,327

1,685
5,171
3,299

1,829
1,741

–
953
3,893
896
15,899(25,560)
814(3,706)(2,892)(22,668)513(23,181)

7

–

–
1,968
–
1,620
761
7,921
13,912
2,695
2,523
5,218
8,693
127
8,566

Consolidated Statements of Comprehensive Income(Million yen)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

For the fiscal year ended
February 28, 2021
(22,668)

For the fiscal year ended
February 28, 2022
8,693

2,642
(7)
1,064
(1,081)17* 2,635(20,032)

292
(13)
1,042
1,370
272
* 2,963
11,657(20,529)497

11,501155

8

(3) Consolidated Statements of Changes in Equity
Fiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)(Million yen)
Shareholders’ equity
Share
capitalBalance as at
March 1, 2020
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during
periodDividends ofsurplus
Loss attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders’equityTotal changes in
items during period
Balance as at
February 28, 2021

Capitalsurplus30,07950,043Retainedearnings
46,338Treasuryshares(21,437)(10,011)30,07950,04336,326

Accumulated othercomprehensive income
Valuation
DeferredTotal
difference on
gains orshareholders’available-forlosses on
equitysale securities
hedges105,023

22(4,581)

22

2,642

(7)

(10,011)(21,437)

95,012(3,240)(3,240)(23,181)(23,181)(225)(4,581)

(0)

(0)

571

345

(356)

(356)

347

347

–

347

(27,005)571(26,085)

2,642

(7)

30,07950,3909,321(20,865)

68,926(1,939)15

9Accumulated other comprehensive income
Revaluation
reserve for land
Balance as at
March 1, 2020
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during
periodDividends ofsurplus
Loss attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders’equityTotal changes in
items during period
Balance as at
February 28, 2021

(9,285)

Total
Foreign
Remeasurements accumulated
currencyof definedothertranslation
benefit plans comprehensive
adjustment
income
(604)

(762)

(15,211)

Share
acquisitionrights

Noncontrollinginterests

Total net
assets484

3,740

94,036(10,011)(9,285)

(604)

(762)

(15,211)

484

3,740

84,025(3,240)(23,181)
(0)
345
(356)

347

1,421

(1,065)

17

3,008

(345)

(1,093)

1,569

1,421

(1,065)

17

3,008

(345)

(1,093)(24,516)(7,864)(1,669)(744)(12,202)

138

2,646

59,50910

Fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)(Million yen)
Shareholders’ equity
Share
capitalBalance as at
March 1, 2021
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Net changes in
items other thanshareholders’equityTotal changes in
items during period
Balance as at
February 28, 2022

Capitalsurplus30,07950,390Retainedearnings
9,321

Treasuryshares(20,865)272
30,07950,3909,594

Accumulated othercomprehensive income
Valuation
DeferredTotal
difference on
gains orshareholders’available-forlosses on
equitysale securities
hedges
68,92615(1,939)

15

292

(13)

272
(20,865)

69,198(1,627)(1,627)

8,566

8,566

(18)

(1,939)

(0)

(0)

34

16

(1,124)(1,124)

－

－

5,797

34

5,831

292

(13)

30,07950,39015,391(20,831)75,030(1,646)1

11

Accumulated other comprehensive income
Total
Foreign
Remeasurements accumulated
Revaluation
currencyof defined
otherreserve for land translation
benefit plans comprehensive
adjustment
incomeBalance as at
March 1, 2021
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Net changes in
items other thanshareholders’equityTotal changes in
items during period
Balance as at
February 28, 2022

(7,864)(1,669)(744)(12,202)

Shareacquisitionrights

Noncontrollinginterests

138

2,646

Total net
assets59,509272(7,864)(1,669)(744)(12,202)

138

2,646

59,781(1,627)
8,566
(0)
16
(1,124)

2,166

1,341

272

4,058

(16)

7,601

11,644

2,166

1,341

272

4,058

(16)

7,601

17,475(5,698)

(328)

(472)

(8,144)122

10,24877,25712

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year ended
February 28, 2021
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on disposal of non-current assets
Loss on disposal of salesfloor fixtures, etc.
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of shares of subsidiaries andassociates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of long-term prepaid expenses
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

13

For the fiscal year ended
February 28, 2022

(25,560)
5,659
3,299
786
(56)
(109)
23
(249)
595

13,912
4,605
1,741
766
(123)
(434)
(217)
(1,392)
391

70

73

(8,135)
213
(4)
1,685

(17,778)
96
(104)
－

5,017

(1,114)

8,418
6,578
(10,112)(8,691)(20,572)
252
(421)
(743)
1,871
(19,614)

1,004
3,405
(1,013)
3,703
7,523
245
(425)
(2,064)
2,536
7,814

(91)
75
(4,249)17,755
(88)
520
(48)
(276)
687

(32)
55
(2,929)32,270
(10)
687
(27)
(662)
1,099

(5,612)(8,286)－

1,620(2,581)
6,091(2,098)21,685

(Million yen)
For the fiscal year ended
February 28, 2021
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting
from change in scope of consolidation
Cash and cash equivalents at end of period

14

For the fiscal year ended
February 28, 2022

12,122
10,390(10,292)(0)(3,240)(739)(2,379)5,860
52(7,609)28,780(38,471)－(5,052)(0)(1,627)(2)
8,980(36,173)602(6,070)21,270100－* 21,270* 15,199

(5) Notes to Consolidated Financial Statements(Uncertainties of entity’s ability to continue as going concern)
Not applicable.

(Significant accounting policies for preparation of Consolidated Financial Statements)
1. Disclosure of scope of consolidation(1) Number of consolidated subsidiaries and names of major consolidated subsidiaries
Number of consolidated subsidiaries: 48
Names of major consolidated subsidiaries
Onward Kashiyama Co., Ltd.
Onward Trading Co., Ltd.
Chacott Co., Ltd.
Creative Yoko Co., Ltd.
Island Co., Ltd.
Onward Personal Style Co., Ltd.
Yamato Co., Ltd.
Onward Creative Center Co., Ltd.
Kokobuy Co., Ltd.
Onward Italia S.p.A.
Joseph Ltd.
Onward Beach Resort Guam, Inc.
Beginning in the fiscal year under review, Freeland S.r.L., Free Shoes S.r.L., Nadhour S.a.r.l., Zenith S.a.r.l., Jil
Sander S.p.A., Jil Sander Paris S.a.r.l., Jil Sander Gmbh, Jil Sander UK Limited, Jil Sander CH S.A.G.L., Jil
Sander USA Inc., and Jil Sander Japan Co., Ltd. have been excluded from the scope of consolidation due to saleof their shares. Onward Life Design Network Co., Ltd. was merged into Onward Resort & Golf Co., Ltd. as thesurviving company and therefore has been excluded from the scope of consolidation. Birz Association Ltd., LaLa
PLAN Co., Ltd., and Onward J Bridge Co., Ltd. were liquidated and therefore have been excluded from the scopeof consolidation.
(2) Names of major unconsolidated subsidiaries
Bien Co., Ltd.
Reasons for exclusion from scope of consolidation
Unconsolidated subsidiaries have been excluded from the scope of consolidation because they are smallin scale and the effects of their total assets, net sales, profit or loss (amount attributable to the Company’s
share), retained earnings (amount attributable to the Company’s share), etc. on the Consolidated Financial
Statements in the aggregate are not material.
2. Disclosure about application of equity method(1) Number of unconsolidated subsidiaries and associates accounted for using equity method
1
Names of major associates accounted for using equity method15

Mulberry Japan Co., Ltd.

(2) Names of major unconsolidated subsidiaries and associates not being accounted for using equity method
Bien Co., Ltd.
Reasons for not being accounted for using equity method
Companies not accounted for using equity method have been excluded from the application of equity
method because their effects on consolidated profit or loss, consolidated retained earnings, etc. areinsignificant and immaterial individually or in the aggregate.
(3) The fiscal year-end of Mulberry Japan Co., Ltd. is March 31, and its financial statements prepared on a basis
similar to that for the year-end closing as of December 31 have been used for consolidation purposes.

3. Disclosure about fiscal years, etc. of consolidated subsidiaries
Among the consolidated subsidiaries, companies whose fiscal year-end is different from the consolidated fiscal
year-end are as follows.
(1) Companies with fiscal year-end on November 30
Onward Italia S.p.A.
Joseph Ltd.
9 other companies(2) Companies with fiscal year-end on December 31
Onward Beach Resort Guam, Inc.
J. Press, Inc.
Onward Fashion Trading (China) Co., Ltd.
14 other companies

4. Disclosure of accounting policies(1) Accounting policy for measuring significant assets
1) Accounting policy for measuring securities
Available-for-sale securitiesThose with fair values
Carried at the fair values prevailing at the fiscal year-end date (unrealized gains or losses areincluded as a component of net assets, and cost of sales is computed by the moving-averagemethod).
Those with no fair values
Stated at cost using the moving-average method.
2) Accounting policy for measuring derivatives
Stated at fair value.
3) Accounting policy for measuring inventories
Inventories are measured at cost determined principally by the specific identification method(the balance sheet value is calculated using the inventory write-down method based on decreased16

profitability).
(2) Accounting policy for depreciation of significant assets
1) Property, plant and equipment (excluding leased assets)
The Company and its domestic consolidated subsidiaries principally provide depreciation by the
declining-balance method, while overseas consolidated subsidiaries provide depreciation by thestraight-line method. Provided, however, that certain buildings (other than facilities attached tobuildings) acquired on and after April 1, 1998 and facilities attached to buildings and structuresacquired on and after April 1, 2016 are depreciated by the straight-line method.
The useful lives of property, plant and equipment are summarized as follows:
Buildings and structures
3 to 50 years
Other
2 to 20 years
2) Intangible assets (excluding leased assets)
Amortized by the straight-line method. Software costs for internal use are amortized over their
expected useful lives (5 to 10 years) by the straight-line method.
3) Long-term prepaid expenses
Amortized by the straight-line method.
4) Leased assets
Leased assets pertaining to finance lease transactions without transfer of ownership
Depreciated by the straight-line method with the leasing period as the useful life and without
residual value.
(3) Accounting policy for significant provisions
1) Allowance for doubtful accounts
In order to prepare for probable future losses on collection, estimated amount uncollectible isprovided for in accordance with the historical average charge-off ratio in the case of ordinary
receivables. In the case of certain accounts designated as highly doubtful accounts, a specificallowance is provided for based on individual detailed credit analysis.
2) Provision for bonuses
Provision for bonuses is recognized for the estimated amount to provide for payment of bonuses
to employees.
3) Provision for bonuses for directors
The Company and certain of its domestic consolidated subsidiaries recognize provision forbonuses for directors in an estimated amount to provide for payment of bonuses to their directors.
4) Provision for retirement benefits for directors and corporate auditors
Certain domestic consolidated subsidiaries recognize provision for retirement benefits for
directors and corporate auditors in an amount payable as of the end of the fiscal year based oninternal regulations, to provide for payment of retirement benefits for Directors and Audit &Supervisory Board Member.
(4) Accounting policy for retirement benefits
1) Method of allocating estimated retirement benefits to each reporting period
In calculating retirement benefit liability, the method of allocating estimated retirement benefits17

to each reporting period up to the end of the fiscal year under review is based on the benefit
formula basis.
2) Accounting policy for actuarial differences and prior service costs
Prior service costs are accounted for as expenses over a certain number of years within the
average remaining years of service of the employees at the time of occurrence (5 to 10 years)
using the straight-line method.
Actuarial differences are accounted for as expenses over a certain number of years within the
average remaining years of service of the employees at the time of occurrence during each fiscal
year (5 to 10 years) using the straight-line method, commencing with the fiscal year following
the one in which they were incurred.
(5) Accounting policy for significant revenue and expenses
The Company and its subsidiaries have adopted the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and the “Implementation Guidance on Accounting Standard for Revenue
Recognition” (ASBJ Guidance No. 30, March 26, 2021) (hereinafter referred to as “Accounting Standard
for Revenue Recognition, etc.”), and the main content of performance obligations and ordinary times whenrevenue is recognized in core businesses are as follows.
1) Revenue related to wholesale sales
Revenue related to wholesale sales identifies the delivery and shipment of products asperformance obligations. In wholesale sales, the performance obligation is fulfilled when theinspection by the customer is complete, but as there is no material difference between this andwhen the product ships, revenue is recognized when the product ships.
2) Revenue related to retail sales
Revenue related to retail sales identifies the delivery of products as a performance obligation.
In retail sales, the performance obligation is normally fulfilled when a product is delivered, so
revenue is recognized when the product is delivered.
3) Revenue related to service provision
Revenue related to provision of services includes primarily licensing fees and royalties, andloans of these are identified as performance obligations. This performance obligation is
fulfilled as contractual terms and conditions are performed, so revenue is recognized over acertain period of time.
(6) Accounting policy for hedging
1) Accounting policy for hedging
Deferred hedging is applied. However, appropriation procedures are applied to trade payables
and trade receivables denominated in foreign currencies with forward exchange contracts.
2) Hedging instruments and hedge items
The derivatives designated as hedging instruments are principally forward exchange contracts.
The related hedged items are trade payables and trade receivables denominated in foreign
currencies and scheduled transactions.
3) Hedging policy
For the purpose of fixing cash flows denominated in Japanese yen from payables and receivables
denominated in foreign currencies by avoiding the risk of future foreign currency exchange rate
fluctuation in relation to export and import transactions denominated in foreign currencies, theCompany enters into forward exchange contracts based on settlement dates in response to orders
18

received from and sent to business partners.
4) Evaluation of hedge effectiveness
By setting up forward exchange contracts denominated in the same currencies with the sameamounts and the same due dates to the amounts of orders received and sent denominated inforeign currencies, the Company ensures that the correlation from fluctuations in foreign
currency exchange rates after entering into forward exchange contracts is maintained.
(7) Accounting policy for goodwill
Goodwill is evaluated on an individual basis and amortized on a straight-line basis over areasonable number of years within 20 years.
(8) Scope of cash and cash equivalents in Consolidated Statement of Cash Flows
Funds (cash and cash equivalents) in the Consolidated Statement of Cash Flows are composedof cash on hand, bank deposits that can be withdrawn on demand, and short-term investments,
which are highly liquid and readily convertible into cash, with an original maturity of 3 months
or less and insignificant risk of changes in value.
(9) Other significant information for preparation of consolidated financial statements
1) Accounting for Japanese consumption taxes
Consumption taxes are accounted for by the tax exclusion method.
2) Application of consolidated taxation system
The Company and certain of its domestic consolidated subsidiaries apply the consolidated
taxation system.
3) Treatment of tax effect accounting for the transition from the consolidated taxation system to the group tax
sharing system
Regarding the transition into the group tax sharing system established by the “Act for Partial
Amendment of the Income Tax Act, etc.” (Act No. 8 of 2020) and the items for which the singleentity taxation system has been revised in conjunction with the transition into the group tax
sharing system, the Company and certain consolidated subsidiaries have not applied theprovisions of paragraph 44 of “Implementation Guidance on Tax Effect Accounting” (ASBJ
Guidance No. 28, February 16, 2018), in accordance with the solution in paragraph 3 of“Practical Solution on the Treatment of Tax Effect Accounting for the Transition from theConsolidated Taxation System to the Group Tax Sharing System” (PITF No.39, March 31, 2020).
The amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the
tax laws prior to the amendment.
(Changes in accounting policies)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the Accounting Standard for Revenue Recognition, etc. from the beginning of the
fiscal year under review, and recognizes revenue in the amount expected to be received in exchange for promised
goods or services at the time when the control of these goods or services is transferred to the customer.
The main changes resulting from the application of the Accounting Standard for Revenue Recognition, etc.
are as follows.

19

(Revenue recognition for principal and agent transactions)Regarding transactions in which the Company acts an agent in providing goods to a customer, the Company
previously recognized the gross amount of consideration to be received from the customer as revenue. However,
the Company has shifted to the method by which it recognizes revenue at the net amount after deducting theamount to be paid to the supplier of goods from the amount to be received from the customer. Meanwhile, withregard to transactions in which the Company acts as a principal and whose revenue was previously recognized at
the net amount after deducting an amount equivalent to distribution fees from the amount to be received from thecustomer, the Company has shifted to the method by which it recognizes revenue at the gross amount ofconsideration.
(Revenue recognition for customer loyalty program)
Regarding the sale of goods under the customer loyalty program, which grants points to customers when goods
are sold, the Company previously recognized revenue at the time of sale, recorded an amount expected to be usedfrom the points granted as “Provision for point card certificates,” and recorded the amount of provision for point
card certificates as “Selling, general and administrative expenses.” However, the Company has shifted to themethod by which it identifies the points granted as performance obligations and allocates the transaction pricebased on the standalone selling price estimated in consideration of the points that are expected to expire in the
future.
(Revenue recognition for sale with a right of return)Regarding “Provision for sales returns,” which was previously recorded under “Current liabilities” based on an
amount equivalent to gross profit, the Company has shifted to the method by which it recognizes revenue andcost of sales at the amounts excluding amounts equivalent to revenue and cost of sales for merchandise andfinished goods that are expected to be returned. Compensation for merchandise and finished goods that are
expected to be returned is recorded as refund liabilities in “Other” under “Current liabilities,” and assets
recognized as the right to recover merchandize and finished goods from customers at the time of settlement ofrefund liabilities are recorded as return assets in “Notes and accounts receivable—trade, and contract assets”
under “Current assets.”
The application of the Accounting Standard for Revenue Recognition, etc. is subject to the transitional
treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition. The
cumulative effect of the retrospective application of the new accounting policy, assuming it has been applied toperiods prior to the beginning of the fiscal year under review, is added to or subtracted from retained earnings at
the beginning of the fiscal year under review, and the new accounting policy is applied from the said beginningbalance. However, the new accounting policy has not been retrospectively applied to contracts for which nearly
all the revenue amounts had been recognized in accordance with the previous treatment prior to the beginning of
the fiscal year under review, by applying the method provided for in paragraph 86 of the Accounting Standard
for Revenue Recognition.
As a result, for the fiscal year under review, net sales increased by 7,053 million yen, cost of sales decreased
by 2,662 million yen, selling, general and administrative expenses increased by 9,752 million yen, operating loss
increased by 35 million yen, and recurring loss and profit before income taxes each decreased by 35 million yen.
In addition, the balance of retained earnings at the beginning of the period increased by 272 million yen. Due tothe application of the Accounting Standard for Revenue Recognition, etc., “Notes and accounts receivable—
trade,” which was presented under “Current assets” in the Consolidated Balance Sheets for the previous fiscal
year, is instead included in “Notes and accounts receivable—trade, and contract assets” from the fiscal year underreview. In accordance with the transitional treatment provided for in paragraph 89-2 of the Accounting Standard
for Revenue Recognition, the Company has not reclassified financial statements for the previous fiscal year byusing the new presentation method.

20

(Changes in the presentation method)(Consolidated Balance Sheets, Consolidated Statements of Income, and Consolidated Statements of Cash Flows)
While real estate lease revenue and real estate lease expenses were previously recorded in “Non-operating
income,” “Selling, general and administrative expenses,” and “Non-operating expenses,” they are recorded in“Net sales” and “Cost of sales” from the fiscal year under review. The Company positions real estate leasing as
one of its major businesses, recognizes real estate lease revenue as a steady source of revenue, and expects realestate lease revenue to grow along with an increase in the number of leasehold properties. In addition, the relevant
department now appropriately manages the profitability of the real estate leasing business. In light of thesecircumstances, in order to present the actual state of the business more appropriately, the Company has changed
the presentation method. Consolidated Financial Statements for the previous fiscal year have been reclassified toreflect this change in the presentation method.
As a result, 1,434 million yen presented in “Rental income from land and buildings” and 142 million yen
presented in “Other” under “Non-operating income” in the Consolidated Statements of Income for the previous
fiscal year have been reclassified as “Net sales.” Additionally, 76 million yen presented in “Selling, general andadministrative expenses” and 519 million yen of “Rental expenses” under “Non-operating expenses” have been
reclassified as “Cost of sales.”Furthermore, 2,754 million yen presented in “Other” under “Investments and other assets” in the Consolidated
Balance Sheets for the previous fiscal year has been reclassified as “Buildings and structures” of 3,928 million
yen, “Buildings and structures (Accumulated depreciation)” of (1,200) million yen, “Other” of 169 million yen,and “Other (Accumulated depreciation)” of (143) million yen under “Property, plant and equipment.”
In addition, 152 million yen presented in “Other” under “Cash flows from operating activities” in theConsolidated Statements of Cash Flows for the previous fiscal year has been reclassified as “Depreciation andamortization.”“Asset retirement obligations” included in “Other” under “Non-current liabilities” in the Consolidated Balance
Sheets for the previous fiscal year has been presented independently from the fiscal year under review due to its
increased monetary materiality. Consolidated Balance Sheets for the previous fiscal year have been reclassified
to reflect this change in the presentation method.
As a result, 4,471 million yen presented in “Other” under “Non-current liabilities” in the Consolidated Balance
Sheets for the previous fiscal year has been reclassified as “Asset retirement obligations” of 1,661 million yen
and “Other” of 2,809 million yen under “Non-current liabilities.”“Non-deductible consumption taxes” included in “Other” under “Non-operating expenses” for the previous
fiscal year has been presented independently from the fiscal year under review due to its increased monetary
materiality.
In addition, “Loss on disposal of non-current assets,” which was presented independently under“Extraordinary losses” for the previous fiscal year, has been included in “Other” under “Extraordinary losses”
from the fiscal year under review due to its decreased monetary materiality.
Consolidated Financial Statements for the previous fiscal year have been reclassified to reflect these changes
in the presentation method.
As a result, 632 million yen presented in “Other” under “Non-operating expenses” in the Consolidated
Statements of Income for the previous fiscal year has been reclassified as “Non-deductible consumption taxes”
of 166 million yen and “Other” of 466 million yen under “Non-operating expenses.”
In addition, 281 million yen presented in “Loss on disposal of non-current assets” and 614 million yen
presented in “Other” under “Extraordinary losses” have been reclassified as “Other” of 896 million yen under“Extraordinary losses.”(Notes to Consolidated Statements of Income)In response to the requests from governments and municipalities in relation to COVID-19, many of the stores21

located in retail facilities, directly-managed stores, resort facilities, and other locations were temporarily closed
in regions including Japan, North America, and Europe. Fixed expenses (including personnel expenses,
depreciation, and rent expenses) on stores and resort facilities incurred during the periods of closure wererecognized as “Extraordinary loss due to closing and other” in “Extraordinary losses.”(Notes to Consolidated Statements of Comprehensive Income)* Notes regarding reclassification adjustments and tax effects relating to other comprehensive income

Valuation difference on available-for-salesecurities:
Amount arising during period
Reclassification adjustment for gain and loss
Amount before income tax effect
Income tax effect
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges:
Amount arising during period
Reclassification adjustment for gain and loss
Amount before income tax effect
Income tax effect
Deferred gains or losses on hedges
Revaluation reserve for land:
Income tax effectRevaluation reserve for land
Foreign currency translation adjustment:
Amount arising during period
Reclassification adjustment for gain and loss
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax:
Amount arising during period
Reclassification adjustment for gain and loss
Amount before income tax effect
Income tax effectRemeasurements of defined benefit plans,
net of tax
Total other comprehensive income

22

For the fiscal year
ended February 28, 2021

(Million yen)
For the fiscal year
ended February 28, 2022

1,120
1,652
2,773
(131)

506
(106)
399
(107)

2,642

292

22
(32)
(9)
2
(7)

1
(22)
(20)
7
(13)

1,064
1,064

1,042
1,042

(1,008)(72)(1,081)

1,277
92
1,370

(66)
98
31
(13)

396
23
419
(146)

17

272

2,635

2,963

(Notes to Consolidated Statements of Changes in Equity)
For the fiscal year ended February 28, 2021
1. Notes regarding issued shares
Number of shares at
Increase
Class of shares
beginning of period
Ordinary shares (Shares)－－

Increase

Decrease

157,921,669

2. Notes regarding treasury shares
Number of shares at
Class of shares
beginning of period
Ordinary shares (Shares)

22,901,445

Number of shares at
end of period

Decrease

157,921,669

1,178

Number of shares at
end of period

580,500

22,322,123(Outline of reasons for changes)
Major component of the increase are as follows.
Increase due to the purchase of shares less than one unit: 1,178 shares
Major component of the decrease are as follows.
Decrease due to the exercise of stock options: 580,500 shares
3. Notes regarding share acquisition rights
Company
nameReportingcompany

Breakdown

Class ofunderlying
sharesShare
acquisitionrights as
stock
options

Number of underlying shares (Shares)

Balance at
end ofperiod(Millionyen)

At
beginning of
periodIncrease

Decrease

At end ofperiod

－

－

－

－

138

－

－

－

－

138

－

Total
4. Notes regarding dividends(1) Cash dividends paid
Resolution

Class of shares

May 28, 2020
Annual General
Meeting of
Shareholders

OrdinarysharesTotal cash
dividends(Million yen)

Dividend pershare (Yen)

3,240

24.00

Record date

Effective dateFebruary 29, 2020

May 29, 2020

(2) Dividends for which the record date falls in the fiscal year under review, but the effective date falls in the following
fiscal year
Resolution

Class ofsharesTotal cash
dividends(Million yen)

Source ofdividends

Dividend pershare (Yen)Record date

Effective date

May 27, 2021
Annual General
Meeting of
Shareholders

Ordinaryshares1,627

Retainedearnings

12.00

February 28,
2021

May 28, 2021

23

For the fiscal year ended February 28, 2022
1. Notes regarding issued shares
Number of shares at
Class of shares
beginning of period
Ordinary shares (Shares)

Increase

Decrease－－

Increase

Decrease

157,921,669

2. Notes regarding treasury shares
Number of shares at
Class of shares
beginning of period
Ordinary shares (Shares)

22,322,123

Number of shares at
end of period
157,921,669

948

Number of shares at
end of period

35,30022,287,771(Outline of reasons for changes)
Major component of the increase are as follows.
Increase due to the purchase of shares less than one unit: 948 shares
Major component of the decrease are as follows.
Decrease due to the exercise of stock options: 35,300 shares
3. Notes regarding share acquisition rights
Company
nameReportingcompany

Breakdown

Class ofunderlying
sharesShare
acquisitionrights as
stock
options

Number of underlying shares (Shares)

Balance at
end ofperiod(Millionyen)

At
beginning of
periodIncrease

Decrease

At end ofperiod

－

－

－

－

122

－

－

－

－

122

－

Total
4. Notes regarding dividends(1) Cash dividends paid
Resolution

Class of shares

May 27, 2021
Annual General
Meeting of
Shareholders

OrdinarysharesTotal cash
dividends(Million yen)

Dividend pershare (Yen)

1,627

12.00

Record date

Effective dateFebruary 28, 2021

May 28, 2021

(2) Dividends for which the record date falls in the fiscal year under review, but the effective date falls in the following
fiscal year
Resolution

Class ofsharesTotal cash
dividends(Million yen)

Source ofdividend

Dividend pershare (Yen)Record date

Effective date

May 26, 2022
Annual General
Meeting of
Shareholders

Ordinaryshares1,627

Retainedearnings

12.00

February 28,
2022

May 27, 2022

24

(Notes to Consolidated Statements of Cash Flows)* Reconciliation of ending balance of cash and cash equivalents with account balances per Consolidated Balance
Sheets is as follows.
(Million yen)
For the fiscal year
ended February 28, 2021

For the fiscal year
ended February 28, 2022

21,301

15,209(31)(10)

21,27015,199Cash and deposits
Time deposits with maturities of morethan three months
Cash and cash equivalents25

(Segment information, etc.)[Segment information]
1. Summary of reportable segments
The Group’s reportable segments are components for which separate financial information is available andregular evaluation by the Board of Directors is performed to decide how management resources are allocated andto assess performance.
The Group engages in the apparel business (planning, production, and sale of textile products, including
men’s and women’s clothing) and the lifestyle business in Japan and overseas.
The reportable segments of the Group comprise the “Apparel Business,” which is divided geographicallyinto two categories, “Domestic” and “Overseas,” and the “Lifestyle Business.”
The “Apparel Business (Domestic)” operates the apparel business in Japan; the “Apparel Business(Overseas)” operates the apparel business overseas. The “Lifestyle Business” operates businesses including acosmetic business, a wellness business related to ballet and dance and resorts, a pet supply and other business, abusiness related to gifts, and a real estate leasing business.
2. Method of calculating net sales, profit or loss, assets, liabilities, and other items by reportable segment
Accounting methods for reportable segments are mostly the same as the accounting methods described in“Significant accounting policies for preparation of Consolidated Financial Statements.”
Profit by reportable segment refers to operating profit. Intersegment sales and transfers are based on market
values.

26

3. Information on net sales, profit or loss, assets, liabilities, and other items by reportable segment
For the fiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)(Million yen)Amountrecorded in
Adjustments Consolidated
Financial(Note 1)
Statements(Note 3)

Apparel BusinessNet sales
Net sales to outside
customers
Intersegment sales ortransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation andamortization (Note 2)
Investments in equitymethod entities
Increases in property, plantand equipment, andintangible assets (Note 2)

LifestyleBusiness

Total(Domestic)(Overseas)

103,648

35,774

139,422

36,477

175,899－

175,899

1,407

1,329

2,736

2,013

4,750

(4,750)－105,055(13,619)
94,55937,103(6,497)25,304142,158(20,117)
119,863

38,491
1,128
47,392

180,650(18,989)
167,255(4,750)(1,184)
28,796

175,899(20,173)
196,052

3,084

914

3,999

1,162

5,161

497

5,659

12

－

12

－

12

－

12

2,804

1,995

4,799

1,192

5,992

509

6,501

Total

(Notes) 1. Adjustments consist of the following:(1) The adjustment amount for segment profit (loss) of (1,184) million yen includes amortization of goodwillof (786) million yen, elimination of intersegment transactions of 3,668 million yen, and corporate
expenses not allocated to reportable segments of (4,065) million yen. Corporate expenses are mainly
general and administrative expenses that are not attributable to reportable segments.
(2) The adjustment amount for segment assets of 28,796 million yen includes the unamortized balance of
goodwill of 5,251 million yen, elimination of intersegment transactions of (133,274) million yen, andcorporate assets not allocated to reportable segments of 156,820 million yen. Corporate assets are mainly
assets held by the Company, a pure holding company.
2. Depreciation and amortization, and increases in property, plant and equipment and intangible assets
include long-term prepaid expenses (furniture and fixtures).
3. Segment profit (loss) coincides with the amount of operating loss in the Consolidated Statements ofIncome.

27

For the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)(Million yen)Amountrecorded in
Adjustments Consolidated
Financial(Note 1)
Statements(Note 3)

Apparel BusinessNet sales
Net sales to outside
customers
Intersegment sales ortransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation andamortization (Note 2)
Investments in equitymethod entities
Increases in property, plantand equipment, andintangible assets (Note 2)

LifestyleBusiness

Total(Domestic)(Overseas)

112,768

16,259129,027

39,426

168,453－

168,453

723

1,305

2,028

1,583

3,611

(3,611)－

113,491(2,176)
82,615

17,564(1,102)
12,339131,055(3,279)94,95441,0092,403
45,310172,065(875)
140,265(3,611)(203)
17,462

168,453(1,079)157,727

2,715

564

3,279

1,129

4,409

195

4,605

－

－

－

－

－

－

－

1,904

1,634

3,538

1,166

4,705

952

5,657

Total

(Notes) 1. Adjustments consist of the following:(1) The adjustment amount for segment profit (loss) of (203) million yen includes amortization of goodwillof (766) million yen, elimination of intersegment transactions of 3,766 million yen, and corporate
expenses not allocated to reportable segments of (3,203) million yen. Corporate expenses are mainly
general and administrative expenses that are not attributable to reportable segments.
(2) The adjustment amount for segment assets of 17,462 million yen includes the unamortized balance of
goodwill of 4,631 million yen, elimination of intersegment transactions of (118,564) million yen, andcorporate assets not allocated to reportable segments of 131,395 million yen. Corporate assets are mainly
assets held by the Company, a pure holding company.
2. Depreciation and amortization, and increases in property, plant and equipment and intangible assets
include long-term prepaid expenses (furniture and fixtures).
3. Segment profit (loss) coincides with the amount of operating loss in the Consolidated Statements ofIncome.

4. Information on changes, etc. in reportable segments
As stated in “(Changes in accounting policies),” the Company has applied the Accounting Standard for Revenue
Recognition, etc. from the beginning of the fiscal year under review and changed the accounting method forrevenue recognition. Accordingly, it has also changed the method of calculating profit or loss for reportablesegments.
As a result of these changes, for the fiscal year under review, for the “Apparel Business (Domestic),” netsales increase by 7,403 million yen and segment loss deteriorated by 33 million yen, and for the “LifestyleBusiness,” net sales and segment profit decreased by 349 million yen and 1 million yen, respectively, comparedwith those calculated under the previous method.
As stated in “(Changes in the presentation method),” real estate lease revenue, which was previously
recorded in “Rental income from land and buildings” and “Other” under “Non-operating income,” has been
reclassified as “Net sales” from the fiscal year under review. In addition, real estate lease expenses, which werepreviously recorded in “Depreciation and amortization” under “Selling, general and administrative expenses”
and “Rental expenses” under “Non-operating expenses” have been reclassified as “Cost of sales.” The figures inthe segment information for the previous fiscal year have also been restated to reflect the reclassification.
28

As a result of these changes, segment loss for the “Apparel Business (Domestic)” improved by 47 million
yen, and net sales and segment profit for the “Lifestyle Business” increased by 1,576 million yen and 981 million
yen, respectively, while the adjustment amount for segment profit (loss) decreased by 28 million yen, comparedwith before the reclassification.
In addition, segment assets for the “Apparel Business (Domestic)” and the “Apparel Business (Overseas)”
decreased by 252 million yen and 457 million yen, respectively, and for the “Lifestyle Business” increased by
3,007 million yen, while the adjustment amount decreased by 2,297 million yen.
Depreciation and amortization for the “Lifestyle Business” increased by 152 million yen.
[Information associated with reportable segments]
For the fiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)

1. Information for each product or service
Descriptions are omitted as similar information is disclosed in Segment information.
2. Information for each region(1) Net sales(Million yen)Japan

Europe141,370

Other
23,906

Total
10,622

175,899(2) Property, plant and equipment(Million yen)
Japan

U.S.
60,132Europe
7,762

Other
2,338

Total
1,592

71,825

3. Information for each of main customers
Information is not stated as there are no parties whose net sales to outside customers comprise 10% or more of
net sales in the Consolidated Statements of Income.
For the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)

1. Information for each product or service
Descriptions are omitted as similar information is disclosed in Segment information.
2. Information for each region(1) Net sales(Million yen)Japan

Europe151,228

Other
9,904

Total
7,320

29

168,453

(2) Property, plant and equipment(Million yen)
Japan

U.S.
45,137

Europe
8,421

Other
1,809

Total
2,674

58,042

3. Information for each of main customers
Information is not stated as there are no parties whose net sales to outside customers comprise 10% or more of
net sales in the Consolidated Statements of Income.
(Disclosure of impairment loss on non-current assets for each reportable segment)
For the fiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)(Million yen)
Apparel Business(Domestic)
Impairment loss

1,385(Overseas)

Total

1,003

Unallocatedamounts andelimination

LifestyleBusiness

2,389

910

－

Total
3,299

For the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)(Million yen)
Apparel Business(Domestic)
Impairment loss

998

(Overseas)

Total

289

Unallocatedamounts andelimination

LifestyleBusiness

1,287

22

(Amortization and unamortized balance of goodwill for each reportable segment)
Descriptions are omitted as similar information is disclosed in Segment information.
(Information about gain on bargain purchase for each reportable segment)
Not applicable.

30

430

Total
1,741

(Per share information)

Net assets per share (Yen)For the fiscal year
ended February 28, 2021
418.32For the fiscal year
ended February 28, 2022
493.14(171.18)

63.17

Basic profit (loss) per share (Yen)－
Diluted earnings per share (Yen)
63.04(Notes) 1. Diluted earnings per share for the previous fiscal year are not stated because the Company recorded
a basic loss per share, although dilutive shares exist.
2. The basis for the calculation of basic profit (loss) per share and diluted earnings per share is asfollows:
For the fiscal year
For the fiscal year
Item
ended February 28, 2021
ended February 28, 2022

Basic profit (loss) per share
Profit (loss) attributable to owners ofparent (Million yen)

(23,181)

8,566

－

－

Profit (loss) attributable to owners ofparent relating to ordinary shares(Million yen)

(23,181)

8,566

Average number of ordinary shares
during the period (Thousand shares)

135,420

135,619

Adjustments to profit attributable toowners of parent (Million yen)－－

Increase in number of ordinary shares(Thousand shares)－266[Of which, share acquisition rights(Thousand shares)]

[－]

[266]

Outline of residual shares not included in
the calculation of diluted earnings per
share due to not having a dilutive effect－－Components not pertaining to ordinary
shareholders (Million yen)

Diluted earnings per share

31

3.

The basis for the calculation of net assets per share is as follows:
For the fiscal year
Item
ended February 28, 2021

For the fiscal year
ended February 28, 2022

Total net assets (Million yen)

59,50977,257

Amount deducted from total net assets(Million yen)

2,785

10,370[Of which, share acquisition rights(Million yen)]

[138]

[122]

[Of which, non-controlling interests(Million yen)][2,646][10,248]

Net assets relating to ordinary shares at endof period (Million yen)

56,723

66,886

Number of ordinary shares at end of periodused for the calculation of net assets per
share (Thousand shares)

135,599

135,633

32

(Significant events after reporting period)(Change in a consolidated subsidiary (share transfer) and transfer of receivables)
At the Board of Directors’ meeting held on March 10, 2022, the Company made a resolution on transferring allof the shares (hereinafter referred to as “the Shares”) in Onward Beach Resort Guam Inc. held by Onward Resort& Golf Co., Ltd., the Company’s consolidated subsidiary, and on transferring the receivables (hereinafter referred
to as “the Receivables”) that the Company has against Onward Beach Resort Guam Inc. to Guam HotelManagement Co., Ltd. (hereinafter the transfers of the Shares and the Receivables are collectively referred to as“the Transfers”).
Due to the Transfers, Onward Beach Resort Guam Inc. will be excluded from the Company’s consolidated
subsidiaries.
1. Reasons for the Transfers
The Company, in order to respond to the rapid and significant changes in the management environment, has
worked for some time on the selection and concentration of its businesses by withdrawing from unprofitablebusinesses and reducing the scales thereof, as stated in “Announcement on Implementation of Global Business
Reforms,” a timely disclosure made as of October 4, 2019.
Under such circumstances, a variety of options for the future vision of the hotel business that the Groupmanages in Guam have been considered, as the need for large-scale improvements has increased in facilities after
30 years since the opening in 1992, and the hotel management environment in Guam has deteriorated on accountof the impact of the global spread of COVID-19, which in turn has also had a serious, adverse effect on theperformance of the Group.
As a result, the Group determined that withdrawing from the hotel management business in Guam(hereinafter referred to as “the Business”) and transferring its shares to a third party is the best decision from theperspective of the Group’s global business reforms. Accordingly, the Company has decided to transfer the Sharesand the Receivables to Guam Hotel Management Co., Ltd. (a wholly owned subsidiary of Hoshino Resorts Inc.).
By conducting the Transfers, the Company will further facilitate the concentration of management resources
into growing fields, thereby accelerating the enhancement of the Group’s corporate value by improving andenhancing its financial constitution through stabilization of earnings base.
The Hoshino Resorts Group, the transferee, is a comprehensive resort management company that operates
56 facilities (as of March 8, 2022) in Japan and abroad, and we believe it is the optimum transferee forstakeholders including customers and employees of the Business, as the Hoshino Resorts Group’s great ability
to attract customers and facility management know-how can be greatly expected to produce synergies with theBusiness.
The golf businesses of Onward Mangilao Guam Inc. and Onward Golf Resort Guam Inc. are not includedin the Transfer and will remain consolidated subsidiaries of the Company.

33

2. Outline of the subsidiary to be changed(1) Name

Onward Beach Resort Guam Inc.

(2) Address

445 Governor Carlos G. Camacho Rd. Tamuning, Guam 96913(3) Title and name of representative

Nobuyoshi Nakamoto, CEO(4) Business description

Operation and management of hotels and resorts(5) Share capital

54,989 thousand dollars(6) Date of establishment

May 23, 1992

(7) Major shareholders andOnward Resort & Golf Co., Ltd. 100%

shareholding ratio(8) Relationship between the listed

Capital relationship

The said company is the Company’s consolidated subsidiary.

company and the said company

Personnel relationshipThree employees of the Company have been appointed
Directors of the said company.

Transactional relationship

There are no direct transactional relationships.
(The Company provides services to Onward Resort & Golf Co.,
Ltd., the parent company of the said company, in relation to
management guidance and administration.)(9) Operating results of the said company for the past three years
Fiscal year ended

December 31, 2018

December 31, 2019

December 31, 2020

Net sales (Million yen)

3,383

3,678

838

Operating profit (Million yen)

114

119

(913)

Net income (Million yen)

47

93

(928)

3. Name of the reportable segment in which the said subsidiary is included in the disclosure of segment information
Lifestyle Business4. Outline of the counterparty in the Transfer(1) Name

Guam Hotel Management Co., Ltd.

(2) Address

2148 Oaza Nagakura, Karuizawa-machi, Kitasaku-gun, Nagano(3) Title and name of representative

Kaita Nakamura, Representative Director(4) Business description

Management of resorts and hot spring inns

(5) Share capital

1 million yen(6) Date of establishment

February 4, 2022

(7) Net assets

1 million yen(8) Total assets

1 million yen(9) Relationship between the listed

Capital relationship

There are no capital relationships of note between the Company

company and the said company

and the said company.
Personnel relationship

There are no personnel relationships of note between the
Company and the said company.

34

Transactional relationship

There are no transactional relationships of note between the
Company and the said company.

5. Transfer price and status of shares held before and after the transfer and outline of transferred receivables(1) Shareholding ratio before the transfer

Shareholding ratio: 100%

(2) Shareholding ratio to be transferred

Shareholding ratio: 100%

(3) Transfer price for the shares

6, 100 million yen(4) Shareholding ratio after the transfer

Shareholding ratio: 0%(5) Property subject to transfer of receivables

The Company’s loan receivables against Onward Beach Resort Guam Inc.

(6) Transfer price for the transferred receivables

2,400 million yen

6. Schedule(1) Date of resolution by the Board of Directors

March 10, 2022

(2) Date of execution of the agreement

March 10, 2022

(3) Date of implementation of the Transfer

March 30, 2022

(Omission of disclosure)
Disclosure of notes regarding leases, transactions with related parties, tax effect accounting, financial instruments,
securities, derivatives, retirement benefits, share options, etc., business combinations, asset retirement obligations,and real estate for lease, etc. have been omitted because disclosing the information in the consolidated financial
results is considered to have little materiality.

35

4. Others
Changes in officers
Other changes in officers (as of May 26, 2022)
1) Director to be retired
Name

Position and responsibility- Senior Managing Director of the Company
Current- Representative Director and Chairman of Onward KashiyamaCo., Ltd.

Tsunenori Suzuki
New- Representative Director and Chairman of Onward KashiyamaCo., Ltd.

* Tsunenori Suzuki’s name is Tsunenori Hasegawa on his family register, but his professional name is listed here.

2) Director to be promoted
Name

Position and responsibility- Outside Director of the Company- Independent Outside Director and Audit & Supervisory
Current

Committee Member of SHIFT Inc.
- Outside Director of Ishii Food Co., Ltd.
- Outside Director of Solasto Corporation

Kenji Chishiki- Director and Vice President of the Company- Independent Outside Director and Audit & SupervisoryNew

Committee Member of SHIFT Inc.
- Outside Director of Ishii Food Co., Ltd.
- Outside Director of Solasto Corporation

3) Audit & Supervisory Board Members to be retired
Name

Position and responsibility- Standing Audit & Supervisory Board Member of the

Hirokazu Yoshizato

Current

Company- Standing Audit & Supervisory Board Member of Onward
Kashiyama Co., Ltd.
- Standing Audit & Supervisory Board Member of the

Hisayuki Ichinose

Current

Company- Standing Audit & Supervisory Board Member of Onward
Kashiyama Co., Ltd.

4) Candidates for new Audit & Supervisory Board Member

36

Name

Position and responsibility
Current- Advisor of the Company- Standing Audit & Supervisory Board Member of the

Hikosaburo Seike

New

Company- Standing Audit & Supervisory Board Member of Onward
Kashiyama Co., Ltd.

Current- Head of the Internal Control Office of the Company- Standing Audit & Supervisory Board Member of the

Nobuyoshi Onogi

New

Company- Standing Audit & Supervisory Board Member of Onward
Kashiyama Co., Ltd.

37