Onward Kashiyama Co., Ltd.

Annual Report 2002

Year Ended February 28, 2002

Annual ReportProfile
Since its establishment in 1947, ONWARD KASHIYAMA
Co., Ltd., has been a leader in the world of fashion. Byleveraging its advanced capabilities in planning, technological development, information network management,

257,306

245,924

221,206

222,869

228,334

and manufacturing, the Company continues to develop awide range of brands that respond to the diverse tastes ofconsumers, who differ not only in age but in the values
they hold. Onward’s products are marketed throughdepartment stores, boutiques, and general retailers
throughout Japan as well as through a global sales network that spans Europe, Asia, and North America.
Onward has earned a strong reputation for its ability toanticipate consumer needs and delight its customers byoffering them new concepts that reflect those needs. As aleading company in the global apparel industry, Onward
will strive to apply its skills and experience to develop
appealing products for world markets.
(Millions of yen)
Years ended
February 28’98 ’99 ’00 ’01 ’02
Consolidated Net Sales

Contents
1

Looking Back on a Year of Achievement

2

A Message to Our Stockholders

4

Business Overview

7

Consolidated Six-Year Summary

8

Financial Review

11

Consolidated Statements of Income

12

Consolidated Balance Sheets

14

Consolidated Statements of Stockholders’ Equity

15

Consolidated Statements of Cash Flows

16

Notes to Consolidated Financial Statements

27

Report of Independent Accountants

28

Non-Consolidated Balance Sheets

30

Non-Consolidated Statements of Income andRetained Earnings

31

Non-Consolidated Statements of Stockholders’ Equity

32

Notes to Non-Consolidated Financial Statements

37

Report of Independent Accountants

38

Board of Directors

39

Organization Chart

40

Principal Subsidiaries

41

Corporate Data and Offices

Looking Backon a Year of Achievement

9,580

 The consolidated net sales of ONWARD KASHIYAMA Co., Ltd., forfiscal 2002, ended February 28, 2002, increased 4.6% from the previous fiscal term, to ¥257.3 billion, with net income falling 20.9%, to ¥3.8
7,404

billion. Net income per share amounted to ¥22.1, and the return on
equity was 2.0%, while cash dividends applicable to the period

 In the spring of 2002 the ICB Collection—the new line of the inter-

4,805

5,086

totaled ¥16.5 per share.

3,802

national brand ICB for career women—was launched simultaneously
in five countries, including Japan, the United States, and Italy. Aiming
for a more creative, high-quality brand image, Onward employed
Dutch designers Viktor & Rolf (Viktor Horsting and Rolf Snoeren).

(Millions of yen)
Years ended
February 28

 From spring-summer 2002, we launched men’s JIYUKU. Focusing’98 ’99 ’00 ’01 ’02

on the same keywords as those of the ladies JIYUKU brand—sophisti-

Consolidated
Net Income

cated, high-quality, casualwear—we have developed a new brand formen’s casualwear that responds to their sizing needs. This new line
targets baby boomers, taking into account their tastes and sensibili-

 For men and women in their 20s and 30s, we offer a new casual
187,039

189,236

180,415

185,287

178,476ties.

kimono under the brand name WANOFUKU. This line, made of synthetic fabric, is machine washable and consists primarily of moderately-priced, pret-a-porter kimonos. In addition to obi and otheraccessories, we are developing our two popular yukata lines
KUMIKYOKU and NIJYUSANKU HOMME.
 U.S. designer Michael Kors opened his first roadside store in Japan.
The theme for spring-summer 2002, as an example of “mix modernism,” features an urban-Asian taste. We aim to expand sales by
unifying the brand image with Micheal’s second line, KORS.
 In spring-summer 2002, Onward started selling French luxury brand(Millions of yen)
Years ended
February 28

CELINE children’s clothes. In addition to including baby sizes in the’98 ’99 ’00 ’01 ’02

spring-summer collection, the fall-winter lineup will feature toddler

Consolidated Total
Stockholders’ Equity

sizes (3-8 years old). In the future, we will strive to expand our children’s clothes operations centering on three brands: KUMIKYOKU, J.
PRESS, and CELINE.

1

A Message

to Our Stockholders

The Operating Environment in Fiscal 2002

that uses our products base and sales structure as the foundations upon

Regarding the economic condition during the fiscal year ended February

which we can achieve balance. Through this move, we aim to boost com-

28, 2002, a deflationary economic trend persisted and the protracted

petitiveness and raise profitability as well as strengthen management prac-

recession continued as financial institutions struggled to dispose of theirtices.

bad loans and the domestic manufacturing sectors faced an increasingly
severe hollowing out. The future direction of the economy remained

Operating Performance

unclear, with no end to the recession in sight. Furthermore, Onward’s busi-

In the apparel division, the Company made aggressive marketing efforts toness environment is undergoing drastic changes, due to such factors aspromote such major profit-making clothing items as the men’s GOTAIRIKU

the diversification of consumption patterns and the reorganization of distrib-

brand, the ladies’ KUMIKYOKU and NIJYUSANKU brands, and the interna-

ution methods. Anxieties prompted by the unsure future of the Japanesetional ICB brand. Consequently, consolidated net sales rose 4.6% from theeconomy have resulted in a protracted slump in consumer spending and aprevious fiscal year, to ¥257.3 billion, operating income increased 8.2%, toworsening of our operating environment.

¥18.1 billion, and net income dropped 20.9%, to ¥3.8 billion. This decline inAgainst this backdrop, the Onward Group stepped up sales activities fornet income is attributable primarily to a special, one-time depreciation costits major brands. The Onward Group’s medium- to long-term strategy,of ¥14.4 billion for the amortization of discrepancies following the change inwhich leverages brand recognition to raise its value, is known as “Brand-

accounting standards and the introduction of retirement benefit accounting.

leveraged Management.” This is the Group’s basic management strategy. In

In the interests of maintaining a stable return to stockholders, cash divi-

addition, the Group’s common objective is “Brand Value Creation.” To

dends applicable to the period will be sustained at ¥16.5 per share.

achieve this target, we have set the following specific objectives to work
toward:Going Forward• In-house planning capabilities

The current harsh operating environment is expected to continue through-• Low-cost production capabilities

out the coming fiscal year. Persistent anxieties about the future, owing to• A system to meet the demand for “hot-selling” items

the protracted economic recession, have diminished chances of a recovery• A fluid distribution system

in consumer spending.

• Attractive retail environments

Faced with such an operating environment, the Onward Group has• Topical advertising and PR activities

decided on several courses of action: the implementation of policies empha-• Stronger sales capabilities

sizing value-added brand creation, from the consumers’ perspective; the• The latest IT systems

creation of internationally competitive products; the operation of shops

As part of our medium- to long-term plan, Onward stepped up sales

appealing to consumers; and the installation and utilization of an IT informa-

activities for the major brands in its apparel business. Onward is strengthen-tion infrastructure, based on our concept of brand-oriented management.

ing its sales structure, production, and planning in order to expand the distri-Our goals are to strengthen international competitiveness and further

bution system; raising efficiency by implementing management strategies

improve management efficiency, and, to this end, we will make every effort.

that leverage brand recognition; and maximizing brand value through brandoriented management. Furthermore, we have created a business structure2

May 23, 2002

Akira Baba, Chairman

Takeshi Hirouchi, President

3

Business

Overview

Men’s Fashions
During fiscal 2002, ended February 28, 2002, sluggish sales of suits andother business-related formalwear stood out. In contrast, high-quality,
casualwear sold at department stores, and targeting adult men in their 50s
and 60s sold well. This reflected the general market trend in business suits
toward an increasing polarization in prices, which vary according to consumers’ purchasing objectives.
The department store market, on the other hand, saw the pret-a-porter
segment putting in a relatively favorable performance.
Large-scale chain retailers saw slack sales in suburban stores, while urban
specialty stores found a way out, by first developing and then expanding
operations of a new type of retail outlet—the discount two-price suit shop.
Regarding the Company’s GOTAIRIKU brand, sales exceeded the previous-year level, spurred by the launch of a “prestige” line and the shift
toward large-scale merchandising, in which an extensive collection of suits,
jackets, slacks, and dress shirts are being made available in the businessapparel department. However, the increased sales for this one brand did
not fully compensate for the decline in sales of other brands. Nonconsolidated net sales by Onward Men’s Fashion Business Group fell
4.9%, to ¥59.3 billion, and accounted for 34.7% of total non-consolidated
net sales.

Women’s Fashions
In fiscal 2002, brand-name products enjoyed high popularity among female
consumers, as a result of the trend toward upscale, high-quality, and highvalue-added products, with coordinates taking on a larger presence in themarket. Female consumers are turning to handbags, gloves, mufflers, andother accessories as a means of expressing their individuality.
Regarding Onward’s sales trends, sales of the leading brand KUMIKYOKU
rose, owing to the popularity of white shirts and horizontally-striped knit
tops worn with the spring-summer line of suits. The fall-winter line of knit
items sold well, along with angora and pea coats. As for the NIJYUSANKU
brand, sales were fueled in the spring-summer season by cotton jackets
and popular print skirts that enjoyed strong sales after appearing in a4commercial. In the fall-winter season, denim jackets, slacks, and flared

Kimonos

skirts in a large checkered pattern were the main sellers. The career-ori-

The business climate surrounding kimono sales is becoming increasingly

ented ICB brand realized record sales of white dress shirts on a volume

severe, as a result of lifestyle changes, declining consumer spending, andbasis. Sales of suits—the leading ICB brand item—were sluggish in the first

expanding rental and recycle markets. Companies of long-standing repute

half of fiscal 2002, but rose during the second half owing to brisk sales ofare being forced to make the necessary inventory adjustments, as theeasy-to-wear cotton coordinates.

industry undergoes restructuring. Amid such circumstances, sales of

The Women’s Fashion Business Group, on a non-consolidated basis,
posted sales of ¥96.2 billion during the term under review, increasing 14.8%
from the previous fiscal year and comprising 56.2% of total net sales.

yukatas—light summer kimonos—declined approximately 97% from thelevel of the previous year, during which sales were strong.
Regarding Onward’s sales trends, brand-name yukatas continue to sellwell, up 130% from the previous year. The brand KUMIKYOKU GIRL,

Children’s Fashions

launched during the previous fiscal year, and leading brands NIJYUSANKU

Since the shift in consumer demand away from “cute” luxury-brand gift

and KUMIKYOKU also made major contributions to sales growth, and pro-items, we have seen strong sales of RALPH LAUREN children’s apparel

vided the driving source of sales revenues in the first half of the fiscal year.

and other brands that incorporate the same concepts, sensibilities, andAs for luxury clothing items, sales handled by the corporate sales divisions

materials as adult apparel. Such items are typically purchased at specialtyof leading department stores are strong, while sales from special events

stores carrying clothing to be worn at graduations and other special occa-

held at department stores were unable to achieve forecasted targets in thesions. With consumers turning to large-scale shopping centers for theirsecond half of the fiscal year. This was due to sluggish consumer demandcasualwear purchases, a polarization in consumption is occurring.

as well as the protracted stagnation in kimono demand. Onward’s Kimono

A growing number of large-scale stores are enabling one-stop shopping

Business Group reported a 0.4% rise in non-consolidated net sales, to ¥3.8

for adults and children. We are focusing efforts on expanding thebillion, contributing 2.2% to the Company’s total non-consolidated net

KUMIKYOKU brand within such large-scale retail outlets. Our KUMIKYOKU

sales.

clothing brand for adults and children is marketed in KUMIKYOKU FAM
outlets nationwide. Each outlet on average measures 330 square meters,
and is located primarily in urban, suburban, and local shopping centersaround the country. KUMIKYOKU brand infant and toddler items are sellingwell, especially one-piece synthetic fleece suits for toddlers. As for the J.
PRESS brand, sales of rugby shirts in August and September rose 200%from the same two months of the previous year, fueling a rise in overallsales for this business group. In fiscal 2002, Onward’s Children’s Fashion
Business Group reported a 12.9% decline in non-consolidated net sales, to¥6.8 billion, which represented 4.0% of total non-consolidated net sales.

5Objets d’art and Jewelry
Onward is moving away from the planning of gallery exhibitions, which often
result in poor sales efficiency ratios, into the planning of special invitational
events in conjunction with the corporate sales divisions of leading department stores, as such events tend to draw large numbers of customers.
In the jewelry industry, demand for platinum temporarily surged among
consumers who made their purchases ahead of an anticipated price rise.
During the spring-summer season in particular, platinum wedding rings soldwell. In addition, rings that appeared in television commercials also put in agood sales performance. In the second half of the fiscal year under review,gold items enjoyed strong sales, while slow sales of silver were covered byincreases in the unit price per item. Sales by Onward’s Objets d’art andJewelry Business Group, on a non-consolidated basis, fell 1.0%, to ¥2.5
billion, representing 1.5% of total non-consolidated net sales.

Other
The department stores’ handbag market saw slow sales of youth-oriented
brands. In contrast, brands targeting career women and the Missy-Misses
segment, as well as imported brands, enjoyed strong sales. The Other
Operations Business Group, on a non-consolidated basis, posted a 9.4% risewith sales of ¥2.5 billion, comprising 1.5% of total non-consolidated net sales.

Onward Corporate GroupThe Onward Corporate Group is decentralizing operations to raise brandawareness. Impact 21 Co., Ltd., handles domestic sales, as well as production and import, of the world-famous RALPH LAUREN brand of women’s
clothing. ACTY 21, Co., Ltd., oversees the domestic sales, production, andimporting of the RALPH LAUREN men’s clothing brand. O.B.T. Co., Ltd., isresponsible for the domestic sales, manufacture, and import of Calvin Klein
brand men’s and women’s apparel. Donna Karan Japan K.K. undertakes
the domestic sales, production, and import of the Donna Karan brand of
men’s and women’s clothing. Chacott Co., Ltd., manages the sales, manufacture, and import of Chacott dance-related products.

6

Consolidated
Six-Year Summary

ONWARD KASHIYAMA Co., Ltd.
Years ended February 28 or 29

Thousands of
U.S. dollars

Millions of yen
1997

1998

1999

2000

2001

2002

2002

$1,087,309

At year-end:
Total current assets¥112,873¥117,382¥119,138¥120,922¥126,151¥146,080

Total property, plant and equipment

86,50991,51790,82092,956

103,581

99,274

738,921

Total assets

266,668

281,752

291,484

296,715

312,258

312,443

2,325,590

Total current liabilities

57,76365,947

69,691

79,63678,98599,673741,891

Total stockholders’ equity

171,897

178,476

185,287

180,415

189,236

187,0391,392,177

Net sales¥214,365¥228,334¥222,869¥221,206¥245,924¥257,306$1,915,192

Cost of sales

121,041

131,476

132,360

130,058

143,449

145,687

1,084,384

Selling, general and administrative expenses

71,54575,54073,70073,88785,731

93,499695,936

Operating income

21,77721,317

16,80917,261

16,744

18,120134,872

Income taxes, current

11,601

10,471

9,599

9,306

4,888

11,176

83,186

Net income

10,864

9,580

5,086

7,404

4,805

3,802

28,299For the year:

Yen

U.S. dollars

Per share (Yen and U.S. dollars):
Net income

¥63.1

¥55.6

¥30.0

¥43.0

¥27.9

¥22.1

$0.164

Cash dividends

18.0

16.5

16.5

16.5

16.5

16.5

0.123

Note: Yen amounts have been translated, for convenience only, at ¥134.35=US$1, the approximate exchange rate on February 28, 2002.

7

Financial
Review

Overview
During fiscal 2002, ended February 28, 2002, the situation surrounding the Japanese economy remained harsh with noprospects of a recovery in the near term. Given the ongoing deflationary trend, the continuing bad-debt problem that plagues
financial institutions, the huge fiscal deficit, and the domestic hollowing out of industry, which are all contributing to a protracted recession, prospects of recovery in the near future look dim. The industry in which ONWARD KASHIYAMA Co., Ltd.,(“Onward”), and its consolidated subsidiaries, (together, the “Onward Group”), operate has witnessed drastic changes during
the year under review, namely a diversification in consumption, a reorganization of distribution sectors, and the entrance of
new competitors into the market. The lingering uncertainty regarding the future direction of the Japanese economy has
dampened consumer sentiment far beyond expectations. Consequently, consumer spending, which has a large impact on
the economic condition of the apparel industry, remains weak.
Amid such an operating environment, the Onward Group achieved consolidated net sales of ¥257.3 billion, up 4.6% fromthe previous fiscal year. Income before income taxes and minority interests grew approximately 174%, to ¥11.3 billion. As aresult of a rise in income taxes, consolidated net income dropped approximately 21%, to ¥3.8 billion. The Onward Groupapplied a new accounting standard for retirement benefits from the fiscal year under review. The one-time amortization oftransition obligation following the introduction of the said retirement benefit accounting has been partially offset by the gain on
the contribution of securities to the retirement benefit trust.
Results of Operations
Net Sales
The Onward Group saw consolidated net sales rise 4.6% from the previous fiscal year, to ¥257.3 billion. The increase wasattributable primarily to the apparel and textile products divisions, with the focus on women’s apparel. Sales by business segment are as follows:
Apparel and Textile Products Business GroupThe Onward Group, actively promoting brand-leveraged management, has further strengthened its leading brands andexpanded its retail spaces—targeting the physical place, where both “product” and “distribution” converge, as a potential
growth area—while simultaneously undertaking brand development. Concerning planning, production, and distribution,
Onward has developed a sales structure around its Quick-Response System, while coordinating with domestic and international members of its global network, thereby achieving concerted efforts in brand expansion and new product development
at every stage—from planning to retail merchandising. As a result, consolidated net sales for this business segment during fiscal 2002 rose 3.5% from the previous fiscal year, to ¥245.5 billion, accounting for 95.4% of total net sales, down one percentage point from the previous fiscal year.
Sales of men’s apparel declined 4.6%, and accounted for 32.1% of consolidated net sales, a 3.1 percentage point dropfrom the previous fiscal year. Sales of women’s apparel rose 12.0% from the previous fiscal year, accounting for 49.8% of
total net sales, up 3.3 percentage points from the previous fiscal year. Thus, net sales of men’s and women’s apparel continued the trends seen in recent years. In men’s apparel, sales of casualwear progressed steadily in contrast to the sluggish
sales of suits and other business-related apparel. Sales of women’s apparel during the period under review reflected thegrowing consumer preference for high-quality, high-value-added items, with leading brands such as NIJYUSANKU andKUMIKYOKU performing well. Offering new lifestyle options through a high concentration of such fashion and beauty items as
clothing and accessories as well as foot- and nail-care products all on a single floor, Onward’s variety shops are also contributing significantly to sales.
Other Division
Despite a persistently harsh employment situation and earnings environment, this segment, comprised of distribution andtransportation services and resort-related operations, saw consolidated net sales rise 35.3%, to ¥11.8 billion, accounting for4.6% of total net sales, a one percentage-point increase from the previous fiscal year.

8

Costs, Expenses, and Earnings
The cost of sales totaled ¥145.7 billion, up 1.6% from the previous fiscal year. As this rate of increase was slower than that of
the rise in net sales, the gross profit margin rose 1.7 percentage points, to 43.4%, and the gross profit increased 8.9%, to¥111.6 billion.
Selling, general and administrative (SG&A) expenses grew 9.1%, to ¥93.5 billion. SG&A expenses as a percentage of net
sales increased 1.5 percentage points from the previous fiscal year, to 36.4%, during the period under review. The increase
was mainly due to a rise in retirement benefit expenses resulting from the adoption of the new accounting standards.
Consequently, operating income increased 8.2%, to ¥18.1 billion. The ratio of operating income to net sales thus increased
0.2 percentage point, to 7.0%.
Other income (expenses), net, improved by ¥5.8 billion, from expenses of ¥12.6 billion in the previous fiscal year, toexpenses of ¥6.8 billion. The improvement is attributable mainly to a decrease in the loss on the write-down of assets otherthan investment securities from the previous year, an ¥8.5 billion gain on the contribution of securities to the retirement benefit
trust, and increased gains from sales of investment securities. This improvement in other income (expenses) was partially offset by a one-time amortization of transition obligation, totaling ¥14.4 billion, resulting from the introduction of retirement benefit accounting per the adoption of new accounting standards in fiscal 2002, and a ¥1.8 billion loss on the write-down ofinvestments in securities.
As a consequence of the aforementioned factors, income before income taxes and minority interests rose approximately
174% from the previous fiscal year, to ¥11.3 billion. However, due to rising income taxes, net income in fiscal 2002 declined
20.9%, to ¥3.8 billion. Income taxes as a percentage of income before income taxes and minority interests rose from 14.5%
in fiscal 2001, to 66.9% in fiscal 2002 due to an increase in losses of consolidated subsidiaries, which do not apply tax-effectaccounting. The profit margin declined 0.5 percentage point, to 1.5%, and the return on equity (ROE) dropped 0.6 percentage point from the previous fiscal year, to 2.0% in fiscal 2002.
Financial Condition
The Onward Group’s total assets rose ¥185 million, or 0.1%, to ¥312.4 billion. Although current assets rose ¥19.9 billion, to¥146.1 billion, this amount was almost completely offset by the decline in noncurrent assets. Total liabilities increased ¥2.7
billion, or 2.5%, to ¥111.7 billion. Current liabilities increased ¥20.7 billion, to ¥99.7 billion. The rise in current liabilities waslargely offset by a decline in long-term liabilities. As a result, the current ratio declined 13.1 percentage points, to 146.6%.
Total stockholders’ equity fell ¥2.2 billion, or 1.2%, to ¥187.0 billion. The equity ratio, declining 0.7 percentage point, to59.9%, remains at a high level. Interest-bearing liabilities rose ¥1.6 billion, to ¥33.5 billion. The debt-to-equity ratio improved
1.1 percentage points, to 17.9%. Thus, asset liquidity showed some decline, with no major change in financial soundness
from the viewpoint of capital structure.
The increase in current assets was due largely to a ¥19.4 billion rise in cash and time deposits. The rise in cash and time
deposits is basically discussed in the following “cash flow” analysis. The decrease in noncurrent assets is due primarily to a
¥25.4 billion decline in investment securities following their sale, made with the aim of improving the efficiency of asset utilization. Property, plant and equipment declined during fiscal 2002, due to depreciation costs and sales exceeding plant andequipment investment during the year under review. The rise in current liabilities is due largely to an ¥8.5 billion increase inaccrued income taxes, reflecting the growth in income before income taxes and minority interests. Meanwhile, short-termbank loans increased ¥10.7 billion. The primary decline in noncurrent liabilities is attributable to a ¥8.9 billion drop in accrued
retirement benefits.
An unrealized actuarial loss of ¥11.3 billion, which resulted from the adoption of the new accounting standards for retirement benefits, will be amortized from fiscal 2003, as permitted by the said accounting standards. The decline in stockholders’equity was largely due to an unrealized loss on land of ¥2.3 billion—following the deduction of deferred tax assets of ¥1.7 billion as a debit of stockholders’ equity—incurred as a result of revaluation of land for business use in accordance with theLand Revaluation Law.

9Overview of Capital Investment
Capital investment totaled ¥10.1 billion in fiscal 2002. Onward invested a total of ¥8.1 billion to strengthen its sales structurewith regard to the apparel and textile-related businesses, primarily to renovate its sales counters at directly operated storesand department store tenant shops. The Group invested another ¥2.1 billion in its other businesses. Of this total, ¥1.7 billion
was invested to expand sales facilities for Onward Agana Beach Hotel Guam, Inc., and improve its operational efficiency.
Cash FlowsThe cash flows provided by operating activities are the primary source of funds for financing operating needs, equipment
investment, and the payment of a dividend to stockholders. Cash and cash equivalents at the end of year totaled ¥79.5 billion, up ¥25.7 billion from the previous fiscal year-end. Changes in cash flows during the fiscal year under review are as follows:
Net cash provided by operating activities amounted to ¥22.8 billion, up ¥11.7 billion from the previous fiscal year-end.
Cash inflow was due primarily to an increase in income before income taxes and minority interests, and a one-time amortization of transition obligation on retirement benefits following the adoption of the new accounting standards for retirement benefits.
Net cash provided by investing activities amounted to ¥3.0 billion, in contrast to a net outflow of ¥12.1 billion during theprevious fiscal year. This improvement was attributable to an increase in refund proceeds on time deposits and an increase inproceeds from the sale of investment securities compared with those in the previous fiscal year.
Net cash used in financing activities totaled ¥0.3 billion, compared with ¥8.9 billion in the previous fiscal year. The primary
cash outflow in the previous fiscal year was the repayment of long-term debt, amounting to ¥7.9 billion. There were no suchoutflows during the fiscal year under review.
Policy on the Distribution of Profits
The Company’s management has long recognized as one of its top priorities the distribution of profit to stockholders. We will
strive to make stable dividend payments while securing adequate internal capital resources to strengthen the financial baseand actively expand operations. Despite the current harsh operating environment and the unclear future direction of the economy, the Company, taking into consideration its policy to make stable dividend payments, paid an annual dividend of ¥16.50
per share, on par with the dividend applicable to the previous fiscal year. As a result, the payout ratio for fiscal 2002 was
48.8%. The ratio of dividends on stockholders’ equity was 1.6%, on par with that of the previous year.
Forward-Looking Statement
Despite the government’s widespread adoption of structural reform measures, personal consumption remained weak amid
persistent uncertainty about the future prospects of the Japanese economy. Consequently, we expect the current harsh
operating environment to continue. Furthermore, given the current deflationary trend, we anticipate intensified competition
among retailers and business categories within the apparel industry. Based on our concept of brand-leveraged management,
the Onward Group is implementing policies emphasizing value-added brand creation from the consumer’s perspective, thecreation of internationally competitive products, the operation of attractive shops, and the installation and utilization of an IT
infrastructure. We are committed to strengthening our international competitiveness and further improving management efficiency to achieve our initial goals through these efforts.
For fiscal 2003, we expect a 3.0% rise in consolidated net sales, to ¥265.0 billion, and 84.1% growth in consolidated net
income, to ¥7.0 billion. These forecasts, based on information possessed by the Onward Group at this point in time, include
the possibility of latent risks and uncertainties. Please be aware that a variety of factors may affect the Group’s forecasts, andcause the actual results to differ largely from projections.

10Consolidated
Statements of Income

ONWARD KASHIYAMA Co., Ltd. and Subsidiaries
For the years ended February 29/28, 2000, 2001 and 2002

Thousands of
U.S. dollars (Note 1)

Millions of yen
2000

2001

2002

2002

Net sales¥221,206¥245,924¥257,306$1,915,192

Cost of sales

130,058

143,449

145,687

1,084,384

Gross profit

91,148102,475

111,619

830,808

Selling, general and administrative expenses

73,88785,731

93,499695,936

Operating income

17,261

16,744

18,120134,872

Other income (expenses):
Interest income

369

374

297

2,211

Interest expenses

(202)

(268)

(185)

(1,377)

Loss on disposal of property(90)(1,850)(436)(3,245)Gain (loss) on sale of investments in securities, net

(23)

(519)

2,444

18,191

Loss on write-down of investments in securities(1,651)(175)(1,771)(13,182)

Royalty income

1,221

1,136

1,106

8,232

Loss on backup for subsidiaries and affiliates

—

(820)

—

—

Loss on liquidation of subsidiaries and affiliates

(227)

(445)

(617)

(4,592)

Additional retirement payments—(3,823)(3,902)(29,044)

Adjustment provision for accrued retirement benefit allowance—(1,879)——Provision for doubtful accounts—(2,477)(611)(4,548)

Reversal of revaluation allowance for investments in securities

—

1,156

—

—

Evaluation loss on investment in venture fund—

(1,928)

—

—

—

—

8,542

63,580Gain on securities contributed to employee retirement
benefit trust (Note 1. (2))
Transition adjustment arising from adoption of the new
accounting standard for retirement benefits (Notes 2. (11) and 6)——(14,430)(107,406)

Other, net

687(1,090)2,773

20,64017,345

4,136

11,33084,332

Income before income taxes and minority interests
Income taxes (Note 8):
Current

9,306

4,888

11,176

83,186

Deferred—(4,288)(4,884)(36,353)

Prior-year income taxes

—

—

1,287

9,579

8,039

3,536

3,751

27,920

Income before minority interests
Minority interests in subsidiaries
Net income

¥

(635)

1,269

51

379

7,404

¥004,805¥003,802$0,028,299

Yen

U.S. dollars (Note 1)

Per share:
Net income

¥43.0

¥27.9

¥22.1

$0.164

Cash dividends

16.5

16.5

16.5

0.123

The accompanying notes are an integral part of these statements.

11

Consolidated
Balance Sheets

ONWARD KASHIYAMA Co., Ltd. and Subsidiaries
February 28, 2001 and 2002

Thousands of
U.S. dollars (Note 1)

Millions of yen

ASSETS

2001

2002

2002

¥060,510¥079,943$0,595,035

32,851

31,592

235,147

(216)

(289)

(2,151)

Current assets:
Cash and time deposits
Trade receivables
Less: Allowance for bad debts

32,63531,303232,996

Inventories

26,471

26,884200,104

Deferred tax assets—current (Note 8)

2,980

4,044

30,100

Other current assets

3,555

3,906

29,074

126,151

146,080

1,087,309

Investments in securities (Note 3)

37,736

12,332

91,790Long-term loans

2,226

2,716

20,216

Deferred tax assets—noncurrent (Note 8)

8,493

12,52093,189—1,702

12,668

Total current assets

Investments and advances:

Deferred tax assets—revaluation of land (Note 9)
Other investments

16,852

18,824140,11265,30748,094357,975

Buildings and structures

65,81467,046

499,040

Other depreciable property

16,00817,127

127,480(39,125)(41,792)(311,068)

42,69742,381

315,452

60,88456,893

423,469

103,581

99,274

738,921

16,44818,923140,849

Excess investment costs over net assets of subsidiaries

139

72

536

Foreign currency translation adjustment (Note 1. (2))

632

—

—

¥312,258¥312,443$2,325,590

Total investments and advances

Property, plant and equipment (Note 5):

Less: Accumulated depreciationLand
Total property, plant and equipment

Deferred charges and other assets

The accompanying notes are an integral part of these statements.

12

Thousands of
U.S. dollars (Note 1)

Millions of yen

LIABILITIES AND STOCKHOLDERS’ EQUITY

2001

2002

2002

Current liabilities:
Short-term bank loans¥017,501¥028,186$0,209,795

Trade payables

44,51545,757

340,581

Accrued expenses

5,745

5,793

43,119Accrued income taxes

2,042

10,56178,608Consumption tax payable

733

1,513

11,262

Accrued bonuses to employees

2,840

3,012

22,419Allowance for sales returns

1,726

1,563

11,634

Other current liabilities

3,883

3,288

24,47378,98599,673741,891

Long-term debt

14,3385,271

39,233

Accrued retirement benefits (Notes 1. (2) and 6)

15,632

6,710

49,94529,97011,981

89,17814,067

13,750102,344

30,08030,080223,893

49,135

49,135

365,724—(2,348)(17,477)

110,022

110,942825,769

Net unrealized losses on available-for-sale securities (Note 2. (5))

—

(278)

(2,069)Foreign currency translation adjustment (Note 1. (2))

—

(475)

(3,536)

189,237

187,056

1,329,304

(1)

(17)

(127)

189,236

187,0391,392,177¥312,258¥312,443$2,325,590

Total current liabilities

Long-term liabilities:

Total long-term liabilities

Minority interests in consolidated subsidiaries
Contingent liabilities (Note 10)
Stockholders’ equity:
Common stock, without par value:
Authorized—400,000,000 shares
Issued—172,292,587 shares
Additional paid-in capital
Net revaluation loss of land (Note 9)
Retained earnings

Less: Treasury stock, at cost
Total stockholders’ equity

13Consolidated

Statements of Stockholders’ Equity

ONWARD KASHIYAMA Co., Ltd. and Subsidiaries
For the years ended February 29/28, 2000, 2001 and 2002

Millions of yen

Number ofshares ofcommon stock(thousands)

Commonstock

Balance as at February 28, 1999:
Cash dividends
Directors’ bonuses
Adjustment of retained earnings for
newly consolidated subsidiaries
Selling of treasury stock, net
Net income for the year ended
February 29, 2000

172,293—————

Balance as at February 29, 2000:
Cash dividends
Directors’ bonuses
Selling of treasury stock, net
Adjustment of retained earnings for
newly consolidated subsidiaries
Cumulative effect of adopting deferred
tax accounting (Note 2. (10))
Net income for the year ended
February 28, 2001

172,293
—
—
—
—
—
—

Balance as at February 28, 2001
Cash dividends
Directors’ bonuses
Selling of treasury stock, net
Adjustment of retained earnings for
newly consolidated subsidiaries
Net income for the year ended
February 28, 2002
Net revaluation loss of land
Net unrealized losses onavailable-for-sale securities
Foreign currency translation adjustment

172,293————

Balance as at February 28, 2002

Net
unrealized
Foreignlosses on
currency
available-for- translation
sale securities adjustment

Additional
paid-in
capitalNet
revaluation
loss ofland

Retainedearnings¥30,080——¥49,135——¥ 000———¥106,074(2,843)
(386)

¥ 0,—
—
—

¥ 0,—
—
—

¥0(1)
—
—

—
—

—
—

—
—

(9,048)
—

—
0

—
—

—
—

—

—

—

7,404

—

—

—

30,080———49,135
—
—
—

—
—
—
—

101,201(2,843)
(303)
—

—
—
—
—

—
—
—
—

(1)
—
—
(0)

—

—

—

322

—

—

—

—

—

—

6,840

—

—

—

—

—

—

4,805

—

—

—

30,080———49,135
—
—
—

—
—
—
—

110,022(2,843)
(51)
—

—
—
—
—

—
—
—
—

0(1)
—
—
(16)

—

—

—

12

—

—

—

—
—

—
—

—
—

—
(2,348)

3,802
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

(278)
—

—
(475)

—
—

172,293¥30,080¥49,135¥(2,348)¥110,942¥(278)¥(475)¥(17)Net
unrealized
Foreignlosses on
currency
available-for- translation
sale securities adjustment

Treasurystock

Treasurystock

Thousands of U.S. dollars (Note 1)

14

Number ofshares ofcommon stock(thousands)

Additional
paid-in
capitalNet
revaluation
loss ofland

Commonstock

Retainedearnings

Balance as at February 28, 2001:
Cash dividends
Directors’ bonuses
Selling of treasury stock, net
Adjustment of retained earnings for
newly consolidated subsidiaries
Net income for the year ended
February 28, 2002
Net revaluation loss of land
Net unrealized losses onavailable-for-sale securities
Foreign currency translation adjustment

172,293———$223,893———$365,724———$ 0000————$818,921(21,161)(379)—$ 000————$ 000————$00(7)
—
—
(120)

—

—

—

—

89

—

—

—

—
—

—
—

—
—

—
(17,477)

28,299
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

(2,069)——(3,536)——

Balance as at February 28, 2002

172,293$223,893$365,724$(17,477)$825,769$(2,069)$(3,536)$(127)

The accompanying notes are an integral part of these statements.

Consolidated

Statements of Cash Flows

ONWARD KASHIYAMA Co., Ltd. and Subsidiaries
For the years ended February 28, 2001 and 2002

Thousands of
U.S. dollars (Note 1)

Millions of yen
2001

2002

2002

¥04,136¥11,330$084,332

6,245
259
733
—
(449)
1,850
(186)
(334)
(980)
4,429
4,938
(283)
(1,270)
(137)

7,179
421
14,220(8,542)(272)
436(2,444)
—
1,771
—
830
(89)
2,292
(591)

53,435
3,134
105,844(63,580)(2,025)
3,245(18,191)—
13,182
—
6,178
(662)
17,059(4,400)18,951

26,541

197,551745(260)(8,330)456(185)(3,992)

3,394(1,377)(29,713)

11,10622,820169,855(6,651)
6,151(5,455)
1,494(1,912)402(2,335)(943)
1,186(3,994)(6,017)
12,265(7,155)231(433)
11,448(4,096)(2,279)1,331(2,254)(44,786)
91,291(53,256)
1,719(3,223)
85,210(30,488)(16,963)
9,900(16,777)(12,057)

3,041

22,635

6,132(4,906)(7,905)803
1(2,843)
(164)

6,349
(3,631)——(16)(2,843)(164)

47,257(27,026)——(120)(21,161)(1,220)(8,882)(305)(2,270)

16

52

387

Increase in cash and cash equivalents(9,817)25,608

190,607

Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents due to changes in the scope of consolidation

57,2106,426

53,81972

400,588
536

Cash and cash equivalents at end of year

¥53,819¥79,499$591,731

Cash Flows from Operating Activities:
Income before income taxes and minority interests
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
Provisions for allowance for doubtful accounts
Provisions for accrued retirement benefit allowance, net of payments
Gain on securities contribution to employee retirement benefit trust
Net interest and dividend income
Loss on disposal of fixed assets
Gain on sale of investments in securities
Gain on change in equity in affiliates(Reversal of) evaluation loss on investments in securities
Evaluation loss on fixed assets
Decrease in trade receivables
Increase in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash Flows from Investing Activities:
Increase in time deposits
Decrease in time deposits
Acquisition of property, plant and equipment
Proceeds from sale of property, plant and equipment
Acquisition of investments in securities
Proceeds from sale of investments in securities
Net increase in deferred charges
Payments for deposit
Proceeds from deposit
Other, net
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities:
Proceeds from short-term loans
Repayments of short-term loans
Net repayments of long-term debt
Proceeds from stock subscription by minority stockholders
Net proceed from /(payment for) treasury stock
Dividends paid
Dividends paid to minority stockholders
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

The accompanying notes are an integral part of these statements.

15

Notes toConsolidated Financial Statements

ONWARD KASHIYAMA Co., Ltd. and Subsidiaries

1. Basis of Presentation of the Consolidated Financial Statements(1) Accounting Principles
The accompanying consolidated financial statements have been prepared from the accounts maintained by ONWARD KASHIYAMA Co., Ltd.
(the “Company”), and its consolidated subsidiaries in accordance with the provisions set forth in the Japanese Commercial Code (the “Code”)
and the Securities and Exchange Law, and in conformity with accounting principles and practices generally accepted in Japan, which are different in certain respects from the application and disclosure requirements of International Accounting Standards.
Certain items presented in the consolidated financial statements submitted to the Director of the Kanto Finance Bureau in Japan have been
reclassified for the convenience of readers outside Japan. The accompanying consolidated financial statements are not intended to present theconsolidated financial position, results of operations or cash flows of the Company and its consolidated subsidiaries in accordance withaccounting principles and practices generally accepted in countries and jurisdictions other than Japan.
From the year ended February 28, 2001, consolidated statements of cash flows were required to be included in the consolidated financial
statements in accordance with a new accounting standard.
Amounts in U.S. dollars are included solely for the convenience of readers outside of Japan. The rate of ¥134.35=US$1, the rate of exchange
at February 28, 2002, has been used in translation. The inclusion of such amounts is not intended to imply that Japanese yen have been or
could be readily converted, realized, or settled in U.S. dollars at that rate or any other rate.
(2) Effect of Adoption of New Accounting Standards
Retirement Benefits
Effective from the year ended February 28, 2002, the Company and its consolidated subsidiaries adopted the “New Accounting Standard for
Retirement Benefits” (issued on June 16, 1998 by the Business Accounting Deliberation Council). The Company contributed securities to an
employee retirement benefit trust, in order to fund the transition amount arising from adopting the new standard of ¥14,430 million ($107,406
thousand) at the beginning of the period, and a gain on securities contributed to the trust of ¥8,542 million ($63,580 thousand), which is calculated as the difference between the market value and the book value is credited to income. As a result of adopting the new standard, net pension expense for the year ended February 28, 2002, increased by ¥14,607 million ($108,723 thousand), operating income decreased by ¥178
million ($1,325 thousand), and income before income taxes and minority interests decreased by ¥6,066 million ($45,150 thousand). Please refer
to Note 13 (segment information) for the impact on the segment information of adopting the new standard.
Financial Instruments
Effective from the year ended February 28, 2002, the Company and its consolidated subsidiaries adopted the new Japanese accounting standard for financial instruments. Following this adoption, the valuation method of securities changed and income before income taxes and minority interests for the year ended February 28, 2002, increased by ¥623 million ($4,637 thousand) compared with the amount which would havebeen reported if the previous standard had been applied consistently. Please refer to Note 13 (segment information) for the impact on the segment information of adopting the new standard.
Foreign Currency Translation
Effective from the year ended February 28, 2002, the Company and its consolidated subsidiaries adopted the “Revised Accounting Standard
for Foreign Currency Translation” (issued on October 22, 1999 by the Business Accounting Deliberation Council). The adoption of the new standard had no material impact on the accompanying consolidated financial statements, except that differences in yen amounts arising from translating foreign currency financial statements of foreign subsidiaries and affiliates into Japanese yen were presented as “Foreign currencytranslation adjustments” in the stockholders’ equity at February 28, 2002, while they were presented as assets before the adoption of the newstandard.

16

2. Summary of Significant Accounting Policies(1) Scope of Consolidation
The Company had 55 subsidiaries as at February 28, 2002 (56 as at February 28, 2001). The consolidated financial statements include theaccounts of the Company and its 23 consolidated subsidiaries (21 for 2001). The 23 subsidiaries which have been consolidated with theCompany are listed below (the Company and these consolidated subsidiaries are together referred to as the “Companies”).
Name of subsidiary

Impact 21 Co., Ltd.
Acty 21 Co., Ltd.
Partner 21 Co., Ltd.
Onward Life Design Network Co., Ltd.
Freed of London Ltd.
O & K Co., Ltd.
Onward Beach Resort Co., Ltd.
Donna Karan Japan K.K.
Onward Creative Center Co., Ltd.
Excel Co., Ltd.
Across Transport Co., Ltd.
On Business Trend Co., Ltd.
Across Service Co., Ltd.
Onward Marine Co., Ltd.
Personal Order Japan Co., Ltd.
Onward Beach Resort Guam, Inc.
Bus Stop Co., Ltd.
Seagler Co., Ltd.
Oak Co., Ltd.
Chacott Co., Ltd.
+A VIA BUS CO., LTD.
Field Dream Co., Ltd.
BOOKLET CORP.

Equity ownership percentage

56.1%
67.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
90.3
100.0
100.0
100.0
100.0
100.0
95.2
28.6
60.5
85.0
100.0
100.0

Closing dateFebruary 28
February 28
February 28
February 28
December 31
February 28
December 31
December 31
February 28
March 31/February 28
February 28
February 28
February 28
February 28
February 28
December 31
February 28
February 28
February 28
March 31/February 28
February 28
February 28
February 28

As a result of an increase in their materiality to the consolidated accounts, BOOKLET CORP. and Field Dream Co., Ltd., have been consolidated for the first time this year. +A VIA BUS CO., LTD., which was established in this year, has been included in consolidation for the first time
this year, however, Onward Resort Creation Inc., was liquidated in the year under review, and has been excluded from the accompanying theconsolidated statements.
Financial statements of Donna Karan Japan K.K., Onward Beach Resort Co., Ltd., Onward Beach Resort Guam Inc., and Freed of London
Ltd., which have fiscal year-ends of December 31, have been used for consolidation. Significant transactions between January 1 and February
28 are reflected in the consolidated financial statements. Chacott Co., Ltd., and Excel Co., Ltd., changed their fiscal year-ends from March 31
to February 28 in this year.
The remaining 32 subsidiaries (35 for 2001) were not consolidated because their combined assets, net sales, net income, and retained earnings in the aggregate were not material compared with those of the consolidated financial statements of the Companies.
(2) Consolidation and Elimination
For the purposes of preparing the consolidated financial statements of the Companies, all significant intercompany transactions, accountbalances, and unrealized profits among the Companies have been entirely eliminated, and the portion attributable to minority interests iscredited/charged thereto.
The difference between the cost of investments in consolidated subsidiaries and the equity in their net assets at dates of acquisition isamortized equally over a 5-year period.
(3) Investments in Unconsolidated Subsidiaries and Affiliates
Although the Company had 32 unconsolidated subsidiaries (35 in 2001) and 4 affiliates (4 in 2001) as at February 28, 2002, the equity method
was not applied to any of those subsidiaries and affiliates. This was because investment in the unconsolidated subsidiaries and affiliates would
not have had a material effect on the consolidated financial statements.

17(4) Inventories
Inventories are stated at cost, cost being determined generally by the last purchase invoice price method which approximates the first-in, firstout cost method. Merchandise held at retail stores is valued at the retail cost method.
When the net realizable value of certain classes of inventories (consisting primarily of seasonal merchandise which remains unsold after theend of such seasons) is substantially less than the carrying value (cost), and the decline of value is not expected to be recovered in the near
future, appropriate write-downs are recorded on such inventory items. The amount of the write-down is determined based on the experience ofsales of merchandise similar to those unsold items during the immediately preceding three years. At February 28, 2002, the recorded writedown is ¥10,247 million ($77,423 thousand).
(5) Investments in Securities
Until the year ended February 28, 2002, marketable securities listed at stock exchanges were stated at the lower of cost or market value.
Unlisted marketable and other securities were stated at cost. The cost of securities sold was based on the moving-average method.
Effective from the year ended February 28, 2002, the Companies adopted the new Japanese accounting standard for financial instruments,
which addresses the accounting and reporting requirements for certain investments in debt and equity securities, and derivatives.
Under the new standard, securities are classified into four categories: trading securities, held-to-maturity debt securities, equity securities of
unconsolidated subsidiaries and affiliates, and available-for-sale securities (“Other securities”). At February 28, 2002, the Companies did nothave trading securities or held-to-maturity debt securities.
Debt securities and equity securities designated as other securities, whose fair values are readily determinable, are carried at the fair value
prevailing at the fiscal year-end date with unrealized gains or losses included as a component of stockholders’ equity, net of applicable taxes.
Other securities, whose fair values can not readily be determined, are stated principally at cost. In cases where declines in the fair value ofindividual securities are assessed to be other than temporary, the cost of the security is reduced to net realizable value and the loss is charged
to income. Realized gains and losses are determined using the moving-average method and are reflected in income.
Unconsolidated subsidiaries and affiliates are stated at the cost determined by the moving-average method.
(6) Derivative Transactions
Under the new standards, all derivatives are stated at fair value, and changes in fair value are included in income for the period in which theyarise, except for derivatives that are designated as “hedging instruments” (see (7) Hedge Accounting below).
(7) Hedge Accounting
Under the new standard, all gains or losses arising from changes in the fair value of the derivatives designated as “hedging instruments” aredeferred as an asset or liability and included in net profit or loss in the same period during which the gains and losses on the hedged items ortransactions are recognized. For foreign exchange forward contracts, if they meet conditions for hedge accounting, the difference between contract rate and spot rate at the date of the contract is recognized over the period from the contract date to the settlement date.
The derivatives designated as hedging instruments by the Company are principally foreign exchange forward contracts. The related hedged
items are trade accounts payable denominated in foreign currencies, and scheduled transactions.
The Company has a policy to utilize the above hedging instruments in order to reduce the exposure to the risk of foreign currency exchange
rate fluctuation, and to fix the cash disbursement of the trade account payable denominated in foreign currencies by domestic currency.
(8) Property, Plant and Equipment
Depreciation is computed using the declining-balance method, at rates based on the estimate useful lives of assets which are prescribed by
Japanese income tax regulations.
The Companies compute depreciation expense for buildings (other than improvements) acquired on and after April 1998 by the straight-line
method pursuant to the amendment to the Japanese income tax law.
(9) Amortization
Intangible assets and long-term prepaid expenses are amortized on a straight-line method over the period prescribed by the Code or tax regulations.
Costs for software for internal use are amortized over the expected useful lives of the software (5 years or less) on a straight-line method.
(10) Income Taxes
Income taxes of the Company and its domestic consolidated subsidiaries consist of corporate income tax, local inhabitants’ tax, and enterprise tax.

18

In the fiscal year ended February 28, 2001, the Company and its domestic consolidated subsidiaries adopted deferred tax accounting inaccordance with the amended consolidated financial statements regulations in Japan. Income taxes were determined using the asset and liability approach whereby deferred tax assets and liabilities were recognized to respect of temporary differences between the tax basis of assets
and liabilities and those as reported in the consolidated financial statements. The cumulative effect of adopting deferred tax accounting at
March 1, 2000 was credited to retained earnings.
In the fiscal year ended February 29, 2000, income taxes of the Company and its domestic subsidiaries were provided for as amounts currently payable based on the tax returns filed with tax authorities.
(11) Allowances
An allowance for doubtful accounts is provided for estimated losses on known bad debts and doubtful accounts at the balance sheet date.
Accrued bonuses to employees are provided for at an amount determined based on the estimated bonuses to employees which wasincurred at the balance sheet date.
An allowance for sales returns is provided for the estimated losses on sales returns calculated under the Japanese tax regulations.
Accrued retirement benefits are provided for at the present value of the projected benefit obligation less the estimated fair value of plan
assets at the balance sheet date. Until the year ended February 28, 2001, the Company provided for accrued retirement benefits (unfounded) inan amount equivalent to 100% of the liabilities payable to all employees eligible for such benefits upon their voluntary retirement at the balance
sheet date, less the accumulated balance of fund assets for the pension plan. As at February 28, 2001, fund assets aggregated ¥7,339 million($63,050 thousand) with the past service liabilities being amortized over a 6-year period.
Effective from the year ended February 28, 2002, the Company and its consolidated subsidiaries adopted the “New Accounting Standard for
Retirement Benefits.” The unrecognized difference of ¥14,430 million ($107,406 thousand) arising from adopting the new standard (the “transition adjustment”) has been fully amortized for the year ended February 28, 2002.
Unrecognized actuarial differences are amortized on a straight-line basis over 5 to 10 year periods from the year following that in which theyarise.
Allowance for retirement benefits for directors and statutory auditors is made at the amount required at the balance sheet date in accordancewith the Company’s internal rules in both the reporting company and consolidated subsidiaries as follows: Impact 21 Co., Ltd., On Business
Trend Co., Ltd., Acty 21 Co., Ltd., Donna Karan Japan K.K., Oak Co., Ltd., and Chacott Co., Ltd.
While the Company has no legal obligation, it is the customary practice in Japan to make lump-sum payments to a director or statutory auditor upon retirement with the approval of the general meeting of stockholders.
(12) Accounting for Leases
Finance leases other than those which are deemed to transfer the ownership of the lease assets to lessees are accounted for by a method similar to that applicable to ordinary operating leases.
(13) Accounting for Consumption Tax
The consumption tax withheld upon sales and the consumption tax paid by the Companies on the purchase of goods and services are notincluded in the accompanying consolidated statements of income.
(14) Dividends
Dividends are declared by the Board of Directors and approved by the stockholders at meetings held subsequent to the fiscal year to which
the dividends are applicable, and stockholders of record as at the end of such fiscal years are entitled to the subsequently declared dividends.
Dividends charged to retained earnings represent dividends approved by the stockholders and paid during the respective years.
(15) Net Income and Dividends per Share
Net income per share is based upon the weighted-average number of shares outstanding during each year. Cash dividends per share shownfor each year in the accompanying consolidated statements of income represent dividends declared as applicable to the respective years rather
than those paid during the years.
(16) Cash and Cash Equivalents
Cash and cash equivalents in the consolidated statement of cash flows are composed of cash on hand, bank deposits which are able to bewithdrawn on demand, and short-term investments which are readily convertible into cash or with an original maturity of three months or lessand which represent insignificant risk of changes in value.

19

3. Investments in Securities(1) Information as of February 28, 2002:(a) Available-for-sale securities (other securities)
Investments in securities included equity and debt securities of which the aggregate cost, fair value (carrying value) and gross unrealized
gains/losses of other securities, whose fair values were available at February 28, 2002, are as follows:
Millions of yen

Securities with unrealized gain:
Equity securities

Acquisition
cost

Book
value

¥0,307307

Total
Securities with unrealized loss:
Equity securities
Total
Total

Thousands of U.S. dollars
Difference

Acquisition
cost

Book
value

Difference¥0,425¥(118$02,285$03,163$0,878

425

118

2,285

3,163

878

3,294

2,661

(633)

24,51819,807(4,711)

3,294

2,661

(633)

24,51819,807(4,711)¥3,601¥3,086¥(515)$26,803$22,970$(3,833)

An impairment loss of ¥1,734 million ($12,907 thousand) for other securities with fair value was recorded for the year ended February 28, 2002.
(b) Other securities sold during the year ended February 28, 2002:

Millions of yen

Thousands of
U.S. dollars(Note 1)

¥8,9982,560
116$66,974
19,054
863

Millions of yen

Thousands of
U.S. dollars(Note 1)

¥0,7684,400$05,71732,750

5,168
4,072

38,46730,309¥9,240$68,776

Proceeds from sale of other securities
Gross realized gain on sale of other securities
Gross realized loss on sale of other securities(c) Major securities which are not stated at fair values as of February 28, 2002:

Other securities:
Non-listed equity securities
Non-listed foreign bonds
Subtotal
Investments in equity securities of unconsolidated subsidiaries and affiliates
Total(d) Redemption and maturity schedule of debt securities classified as other securities
Millions of yen

Non-listed foreign bonds

Thousands of U.S. dollars

Within 1
year

1 to 5years

5 to 10years

Over 10years

Within 1
year

1 to 5years

5 to 10years

Over 10
years

¥—

¥—

¥4,400¥—$—$—$32,750$—(2) Information as of February 28, 2001:
The cost, estimated market value and unrealized gain of investments in securities (noncurrent assets) as of February 28, 2001 were as follows:
Millions of yen

Investments in securities:
Marketable equity securities
Bonds
Other securities

20

Total

Book
value

Estimatedmarket value

Unrealized
gain, net

¥28,866——¥42,276——¥13,410——¥28,866¥42,276¥13,410

The book values of major securities that are excluded from the above presentation as of February 28, 2001 are as follows:
Millions of yen

Investments in securities:
Unlisted securities (excluding over-the-counter securities)
Unlisted foreign bonds¥4,4704,400

4. Derivative Transactions
Derivatives are used in order to hedge foreign exchange market risk on the transactions and balances which occur in the normal course of business. Derivatives are not used for speculative purposes or for highly leveraged transactions because these transactions are considered effective
hedging.
The Company and its consolidated subsidiaries applied hedge accounting for all derivative transactions as of February 28, 2002 and, therefore, no market value information is disclosed.
The contracted amounts of market values and valuation gains or losses for derivative transactions as of February 28, 2001 were as follows:
Millions of yen
Contract amount, etc.

Forward exchange contract:
Buying contract
USD
GBP
EURO
Italian lira
DM

Total

Over one year

Fair value

Valuation
gain or (loss)¥2,484
8
102
14
5

¥—
—
—
—
—

¥2,845
8
101
16
4

¥361
0
(1)
2
(1)

¥2,613¥—¥2,974¥361

5. Property, Plant and Equipment
The Japanese tax regulations allowed a company to defer capital gains on the sale of real property if the company intended to offset such gains
against the cost of newly acquired fixed assets. When such accounting was followed, the cost of the new fixed assets was reduced to theextent of the deferred capital gains, thereby affecting related depreciation charges and accumulated depreciation.
The property, plant and equipment at February 28, 2002, was reduced ¥8,854 million ($65,902 thousand), representing accumulated
deferred gains from historic sales.

6. Retirement Plan and Retirement Benefits
The Company and its subsidiaries have defined benefit retirement plans covering substantially all employees. Defined benefit retirement plansinclude a plan which is governed by the regulations of the Japanese Welfare Pension Insurance Law (“welfare benefit plan”), tax qualified pension plans, and plans for lump sum retirement benefits.
The reserve for retirement benefits as of February 28, 2002 is analyzed as follows:
Millions of yen

Thousands of
U.S. dollars

Projected benefit obligations
Plan assets (including employee retirement benefit trust)¥(67,815)
52,745$(504,764)
392,594

Funded status
Unrecognized actuarial differences(15,070)
11,347(112,170)
84,459Subtotal
Prepaid pension cost

(3,723)
1,271(27,711)9,461¥0(4,994)$0(37,172)

Accrued pension and severance costs

21

Net pension expense for the year ended February 28, 2002 was as follows:
Millions of yen

Thousands of
U.S. dollars

Service cost
Interest cost
Expected return on plan assets
Amortization of transition adjustment
Amortization of unrecognized actuarial differences¥02,217
2,043(1,246)
14,43033$016,502
15,207(9,274)
107,406
247

Net pension expense¥17,477$130,086

Assumptions used in the calculation of the aforementioned information were as follows:
Discount rate:
Expected rate of return on plan assets

2.0 to 3.0% (3.5% at the beginning )Welfare benefit plan: 2.8 to 4.0%
Tax qualified pension plans: 1.1 to 1.5%

Method of attributing the projected benefits to periods of services: Straight-line basis
Amortization of unrecognized actuarial differences:

5 to 10 years

7. Lease Transactions
The Company’s finance lease contracts which are not deemed to transfer the ownership of the leased assets to lessees are not capitalized,
which is permitted by the Japanese accounting principles. Certain key information on such lease contracts of the Companies for the year ended
February 28, 2002, is as follows:(Lessee)
Assumed data as to acquisition cost, accumulated depreciation, net book value and depreciation expense of the leased assets, which
included the portion of interest thereon, is summarized as follows:
Millions of yen

Thousands of U.S. dollars

2002
Tools, furniture,and fixtures

Other

Acquisition cost
Accumulated depreciation¥2,943(1,405)¥1,236(558)

Net book value¥1,538¥0,6782002
Total

Tools, furniture,and fixtures

Other

Total

¥4,179(1,963)$21,905(10,457)$9,200(4,154)$31,105(14,611)¥2,216$11,448$5,046$16,494

The scheduled maturities of future lease payments on such lease contracts as of February 28, 2002, are as follows:

Scheduled maturities of future lease payments:
Due within one year
Due over one year

Millions of yen

Thousands of
U.S. dollars

2002

2002

¥ 817
1,458

$ 6,081
10,852¥2,275$16,933

Millions of yen

Lease expenses for the year

22

Thousands of
U.S. dollars

2001

2002

2002

¥854

¥828

$6,163

(Lessor)
Assumed data as to acquisition cost, accumulated depreciation, net book value and depreciation expense of the leased assets, which
included the portion of interest thereon, is summarized as follows:
Millions of yen

Thousands of U.S. dollars

2002
Tools, furniture,and fixtures

Other

Acquisition cost
Accumulated depreciation

¥85
(56)

Net book value

¥29

2002
Total

Tools, furniture,and fixtures

Other

Total

¥48
(26)

¥133
(82)

$633
(417)

$357
(193)

$990
(610)

¥22

¥051

$216

$164

$380

The scheduled maturities of future lease income on such lease contracts as of February 28, 2002, are as follows:

Scheduled maturities of future lease income:Due within one year
Due over one year

Millions of yen

Thousands of
U.S. dollars

2002

2002

¥034
79

$253
588

¥113

$841

Millions of yen

Lease income for the year

Thousands of
U.S. dollars

2001

2002

2002

¥106

¥27

$201

8. Income Taxes
Deferred tax assets and liabilities as at February 28, 2002, consisted of the following elements:
Millions of yen

Deferred Tax Assets:
Valuation loss on inventories
Evaluation loss on investments in unconsolidated subsidiaries
Excess amount of tax deductible accrued bonuses to employees
Excess amount of tax deductible accrued employees’ retirement benefits
Allowance for directors’ retirement benefits
Tax losses carried forward
OthersSubtotal
Valuation allowanceThousands of
U.S. dollars

2001

2002

2002

¥02,717
754
401
3,683
708
9,991
2,088

¥03,156
739
705
9,904
721
12,2164,536$023,491
5,500
5,247
73,717
5,366
90,92633,762

20,342

31,977238,009(8,844)(11,798)(87,815)

11,49820,179150,194—(25)(3,589)(25)(26,717)(187)

Total deferred tax liabilities(25)(3,614)(26,904)

Net deferred tax assets¥11,473¥16,565$123,290

Total deferred tax assets
Deferred Tax Liabilities:
Gain on securities contributed to an employee retirement benefit trust
Provision for deferred capital gains on real property

23

Reconciliation between statutory tax rate and effective tax rate as at February 28, 2001 and 2002:%

Statutory tax rate
(Reconciliation)
Nondeductible items (entertainment expense, etc.)
Losses of consolidated subsidiaries to which deferred tax assets are not recognized
Unrecognized deferred tax on unrealized intercompany loss
Recognized deferred tax on losses on backup for consolidated subsidiaries
Other

2001

2002

42.0)%

42.0)%

15.8
89.2
14.0
(145.6)(0.9)

Effective tax rate

3.2
20.3
—
—
1.4

14.5)%

66.9)%

9. Revaluation of LandIn the year ended February 28, 2002, the Company has revaluated land for its business use at a market value in accordance with application of
the laws which permit a one-time revaluation of land used for business. The revaluation loss amounted to ¥4,050 million ($30,145 thousand),the related deferred tax asset of ¥1,702 million ($12,668 thousand) was recognized, and the net the revaluation loss of ¥2,348 million ($17,477
thousand) was presented as a separate component of stockholders’ equity as a “Net revaluation loss of land.”10. Contingent Liabilities
The Company was contingently liable as a guarantor for bank loans made by certain affiliates of the Company. The outstanding guarantees
as at February 28, 2002, aggregated ¥4,930 million ($36,695 thousand).

11. Legal Reserve and Appropriation of Retained Earnings
Under the Japanese Commercial Code and the Company’s Articles of Incorporation, the plan for the appropriation of retained earnings proposed by the Board of Directors must be approved at the stockholders’ meeting which must be held within three months following each fiscal
year-end.
The appropriation of retained earnings reflected in the accompanying consolidated statements of income represents the result of suchan appropriation applicable to the preceding fiscal period.
Under Japanese accounting practices, bonuses to directors and statutory auditors are paid out of retained earnings instead of being charged
to income of the year, and constitute a part of the appropriation explained above.
The Japanese Commercial Code requires that an amount equal to at least 10% of any payment by way of appropriation of retained earnings
be set aside as a legal reserve until the total additional paid-in capital and/or a legal reserve equals 25% of paid-in capital. Additional paid-in
capital and/or a legal reserve in excess of 25% of stated capital in total may be reduced by resolution of the stockholders, and may be available
for distribution to stockholders.

12. Subsequent Event
Subsequent to February 28, 2002, the Board of Directors proposed a plan for the appropriation of retained earnings applicable to the year
ended February 28, 2002, which was approved at the general meeting of stockholders held on May 23, 2002.
The approved appropriation of retained earnings is shown below:

Retained earnings at February 28, 2002
Reversal of a reserve for deferred capital gains on real property
Appropriations:
Cash dividends (¥16.5 per share)
Directors’ bonuses

Retained earnings to be carried forward

24

Millions of yen

Thousands of
U.S. dollars¥6,3451$47,228
5

2,843
398

21,161
2,963

3,241

24,124¥3,105$23,10913. Segment Information(1) Industry Segment Information
The Company and its subsidiaries operate principally in two industrial segments: Clothing and Other.
The Clothing Division produces and sells a wide range of women’s and men’s clothing, including: dresses, suits, shirts, skirts, sweaters,
trousers, and casualwear.
The Other Businesses operates logistics, sports facilities, resort facilities, etc.
Segment information classified by industry segment of the Company for each of the two years ended February 28, 2001 and 2002, is asfollows:
Year ended February 28, 2001

Millions of yen
Industry segment
Clothing

Other

Total

Elimination ofintersegment sales

Consolidated
total

Sales to outside customers
Intersegment sales¥237,177
18¥08,747
11,657¥245,924
11,675¥0000—(11,675)¥245,924—

Total
Costs and expenses

237,195
220,325

20,404
20,410257,599
240,735(11,675)(11,555)

245,924
229,180

Operating income¥016,870¥0000(6)¥016,864¥00,(120)¥016,744

AssetsDepreciation
Capital expenditures¥285,390
5,458
8,725

¥46,221862
2,086¥331,611
6,320
10,811¥(19,353)
(59)
(79)

¥312,258
6,261
10,732

Year ended February 28, 2002

Millions of yen
Industry segment
Clothing

Other

Total

Elimination ofintersegment sales

Consolidated
total

Sales to outside customers
Intersegment sales¥245,469
721¥11,837
13,480¥257,306
14,201¥ 0000—(14,201)¥257,306—

Total
Costs and expenses

246,190
228,088

25,31725,300271,507
253,388(14,201)(14,202)257,306
239,186

Operating income¥018,102¥00,017¥018,119¥00,(001¥018,120

AssetsDepreciation
Capital expenditures¥291,263
6,274
8,202

¥42,848933
2,069¥334,111
7,207
10,271¥(21,668)
(77)
(122)

¥312,443
7,130
10,149Notes: 1. Foreign currency translation adjustment included in the elimination of intersegment sales under assets were ¥631 million and ¥0 for the years ended February
28, 2001 and 2002, respectively.
Notes: 2. As explained in Note 1. (2), the Companies adopted the new accounting standard for retirement benefits for the year ended February 28, 2002. As a result of
the adoption, operating income of the Clothing Division decreased by ¥178 million ($1,325 thousand), and assets of the Clothing Division and Other
Businesses increased by ¥1,251 million ($9,311 thousand) and ¥20 million ($149 thousand), respectively, compared with the prior fiscal year.
Notes: 3. As explained in Note 1. (2), the Companies adopted the new accounting for financial instruments for the year ended February 28, 2002. As a result of adoption, the effect on the results of operations of each industry segment are immaterial and the assets of the Clothing Division increased by ¥107 million ($796
thousand), as compared with the prior accounting.

25

Year ended February 28, 2002

Thousands of U.S. dollars
Industry segment
Clothing

Other

Total

Elimination ofintersegment sales

Consolidated
total

Sales to outside customers
Intersegment sales$1,827,086
5,367$088,106
100,335$1,915,192
105,702$ 00000—(105,702)$1,915,192—

Total
Costs and expenses

1,832,453
1,697,715

188,441
188,3142,020,894
1,886,029(105,702)(105,709)

1,915,192
1,780,320

Operating income$0,134,738$000,127$0,134,865$(000,007$0,134,872

AssetsDepreciation
Capital expenditures$2,167,942
46,69961,049$318,928
6,945
15,400$2,486,870
53,64476,449$(161,280)
(573)
(908)

$2,325,590
53,07175,541(2) Geographic Segment Information
Geographic segment information is omitted because over 90 percent of total sales and total assets relate to only the domestic segment.
(3) Overseas Sales
Overseas sales information is omitted because, the total overseas sales of the Company and its consolidated subsidiaries is under 10 percentof consolidated sales amount.

26

Report of

Independent Accountants

The Board of Directors of ONWARD KASHIYAMA Co., Ltd.:We have audited the accompanying consolidated balance sheets of ONWARD KASHIYAMA Co., Ltd. and its consolidated subsidiaries as ofFebruary 28, 2001 and 2002, the related consolidated statements of income and stockholders’ equity for each of the three years in the period
ended February 28, 2002, and the statements of cash flows for the years ended February 28, 2001 and 2002, all expressed in Japanese yen.
Our audits were made in accordance with auditing standards, procedures and practices generally accepted and applied in Japan and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of
ONWARD KASHIYAMA Co., Ltd. and its consolidated subsidiaries as of February 28, 2001 and 2002, the results of their operations for each of
the three years in the period ended February 28, 2002, and their cash flows for the years ended February 28, 2001 and 2002, in conformity withaccounting principles and practices generally accepted in Japan (see Note 1) applied on a consistent basis.

The amounts expressed in U.S. dollars, provided solely for the convenience of the reader, have been translated on the basis set forth in Note 1
to the accompanying consolidated financial statements.

ChuoAoyama Audit Corporation

Tokyo, JapanMay 23, 2002

27

Non-Consolidated
Balance Sheets

Onward Kashiyama Co., Ltd.
February 28, 2001 and 2002

Thousands of
U.S. dollars (Note 1)

Millions of yen

ASSETS

2001

2002

2002

¥008,790¥015,065$0,112,132

32,10644,104

328,277

Current assets:
Cash
Time deposits
Trade receivables:
Notes

4,627

3,165

23,558

Accounts

16,306

16,809125,113

20,933

19,974

148,671

(102)

(142)

(1,057)

Less: Allowance for bad debts

20,831

19,832

147,614

Inventories (Note 3)

18,57017,767132,244

Advance payments

950

275

2,047

Deferred tax assets—current (Note 7)

2,011

3,080

22,925

Other current assets

1,210

2,263

16,84584,468102,386

762,084

Total current assets

Investments and advances:
Investments in securities

32,824

7,177

53,420Investments in and advances to subsidiaries and affiliates

22,145

26,112

194,358

Long-term loans to employees

376

313

2,330

8,564

12,726

94,723—

1,702

12,668

8,511

10,21576,03372,42058,245433,532

Buildings and structures

47,984

48,331

359,739

Machinery and equipment

2,034

2,024

15,065Tools, furniture and fixtures

5,870

7,038

52,386

Deferred tax assets—noncurrent (Note 7)
Deferred tax assets—revaluation of land (Note 5)
Other investments

Property, plant and equipment (Note 4):55,88857,393427,190

Less: Accumulated depreciation(25,619)(27,733)(206,423)

30,26929,660220,767

Land

47,553

43,488323,692

77,822

73,148544,459

Deferred charges and other assets

The accompanying notes are an integral part of these statements.

28

5,733

6,098

45,388¥240,443¥239,877$1,785,463

Thousands of
U.S. dollars (Note 1)

Millions of yen

LIABILITIES AND STOCKHOLDERS’ EQUITY

2001

2002

2002

¥024,356¥024,594$0,183,059

6,247

6,200

46,148Current liabilities:
Trade payables:
Notes
Accounts

30,60330,794229,207

Non-trade payables

2,391

1,712

12,743

Accrued expenses

4,352

3,853

28,679846

8,949

66,610Accrued income taxes
Consumption tax payable

261

1,174

8,738

Accrued bonuses to employees

1,888

2,091

15,564

Allowance for sales returns

1,474

1,385

10,309Other current liabilities

1,178

1,253

9,326

42,993

51,211

381,176

Long-term guarantee money deposited

2,105

2,137

15,906

Accrued retirement benefits (Note 2. (8))

10,670

1,492

11,105

Provision for loss on guarantee obligations

3,870

3,870

28,805

Total long-term liabilities

16,645

7,499

55,816

Total current liabilities

Long-term liabilities:

Contingent liabilities (Note 8)

Stockholders’ equity:
Common stock, without par value:
Authorized—400,000,000 shares issued
30,08030,080223,893

Additional paid-in capital

Outstanding—172,292,587 shares

49,135

49,135

365,724

Legal reserve (Note 9)

5,198

5,483

40,811—(2,348)(17,477)

92,70992,709690,056

72

35

261

3,611

6,345

47,228Net unrealized loss on available-for-sale securities

—

(255)

(1,898)Less: Treasury stock, at cost

—

(17)

(127)

Net revaluation loss of land (Note 5)
General reserves (Note 9)
Special reserves
Retained earnings (Note 9)

Total stockholders’ equity

180,805

181,167

1,348,471¥240,443¥239,877$1,785,463

29

Non-Consolidated

Statements of Income and Retained Earnings

Onward Kashiyama Co., Ltd.
For the years ended February 29/28, 2000, 2001 and 2002

Thousands of
U.S. dollars (Note 1)

Millions of yen

Net sales
Cost of sales

2000

2001

2002

2002

¥164,685
91,609¥161,281
88,486¥171,109
93,111$1,273,606
693,048

73,076

72,79577,998580,558

Reversal of allowance for sales returns, net

248

511

89

662

Gross profit
Selling, general and administrative expenses

73,32460,94673,306
61,70978,08761,865581,220
460,476

Operating income

12,378

11,597

16,222

120,744932(17)—(1,643)695——(2,266)
—
—

850
(60)
1,156
(146)
750
—
(12,131)(4,898)(2,657)(3,075)591(36)—(1,738)
587
8,542
—
(617)
(511)
(2,691)

4,399
(268)
—
(12,936)4,369
63,580—(4,592)(3,803)(20,030)

—
3,097

—
32

(13,940)
4,131(103,759)
30,748798(20,179)(5,682)(42,292)

Income (loss) before income taxes

13,176(8,582)

10,54078,452

Income taxes (Note 7):
Current
Deferred
Prior-year income taxes

7,200
—
—

2,049
(4,351)—

8,474(5,046)
1,287

63,074(37,559)
9,580

7,200

(2,302)

4,715

35,095

Net income (loss)

5,976(6,280)5,825

43,357

9,501
—

9,495
6,224

3,611
—

26,878
—

—

32

37

275

(2,843)(317)(2,500)(322)(2,843)(307)(2,500)(210)(2,843)(285)——(21,161)(2,121)——(5,982)(5,860)(3,128)(23,282)

9,495¥03,611¥006,345$0,047,228

Other income (expenses):
Interest and dividend income
Loss on disposal of property
Reversal of revaluation allowance for investment in securities
Loss on write-down of investments in securities, net
Royalty income
Gain on securities contributed to employee retirement benefit trust
Loss on backup for subsidiaries and affiliates
Loss on liquidation of subsidiaries and affiliates
Provision for allowance for doubtful accounts
Additional retirement payments
Transition adjustment arising from adoptionof the new accounting standard for retirement benefits
Other, net

Retained earnings:
Balance at beginning of year
Cumulative effect of adopting deferred tax accounting
Reversal of reserve for deferred capital gains on property
due to adoption of deferred tax accounting
Appropriations (Note 9):
Cash dividends
Transfer to legal reserve
Transfer to general reserves
Directors’ bonuses

Balance at end of year¥

Yen

Per share:
Net (loss) income
Cash dividends

30

The accompanying notes are an integral part of these statements.

¥34.7
16.5

¥(36.5)
16.5

U.S. dollars (Note 1)

¥33.8
16.5

$0.2520.123

Non-Consolidated
Statements of Stockholders’ Equity

Onward Kashiyama Co., Ltd.
For the years ended February 29/28
2000, 2001 and 2002

Millions of yen

Number ofshares ofcommonstock(thousands)

Commonstock

Balance as at February 28, 1999:
Cash dividends
Transfer to legal reserve
Transfer to general reserves
Directors’ bonuses
Net income for the year ended February 29, 2000
Balance as at February 29, 2000:
Cumulative effect of adopting
deferred tax accounting
Reversal of reserve for deferred capital gains on
property due to adopting deferred tax accounting
Cash dividends
Transfer to legal reserve
Transfer to general reserves
Directors’ bonuses

LegalreserveNet
revaluation
loss ofland

Generalreserves

Special Retained
reserves earningsNetunrealized Treasury
loss onstock
securities at cost

172,293—————¥30,080 ¥49,135 ¥4,574
—
—
—
—
—
317
—
—
—
—
—
—
—
—
—

¥ 000——————¥87,709
—
—
2,500
—
—

¥104
—
—
—
—
—

¥9,501(2,843)(317)(2,500)
(322)
5,976

¥0,—
—
—
—
—
—

¥,—
—
—
—
—
—

172,293

30,08049,135

4,891—

90,209

104

9,495

—

—

—

—

—

—

—

—

—

6,224

—

—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
307
—
—

—
—
—
—
—

—
—
—
2,500
—

(32)
—
—
—
—

32
(2,843)(307)(2,500)
(210)

—
—
—
—
—

—
—
—
—
—

Net loss for the year ended February 28, 2001
Balance as at February 28, 2001
Reversal of reserve for deferred
capital gains on property
Cash dividends
Transfer to legal reserve
Net income for the year ended February 28, 2002
Net revaluation loss of land (Note 5)
Net unrealized loss on available-for-sale securities

—

—

—

—

—

—

—

(6,280)——172,293

30,08049,135

5,198—

92,709

72

3,611

—

—

—
—
—
—
—
—

—
—
—
—
—
—

—
—
—
—
—
—

—
—
285
—
—
—

—
—
—
—
(2,348)
—

—
—
—
—
—
—

(37)
—
—
—
—
—

37
(2,843)
(285)
5,825
—
—

—
—
—
—
—
(255)

—
—
—
—
—
—

—

—

—

—

—

—

—

—

—

(17)

¥(2,348) ¥92,709¥035¥6,345¥(255)¥(17)Net
unrealized Treasury
loss onstock
securities at cost

Treasury stock, at cost (Note 1. (2))
Balance as at February 28, 2002

Additional
paid-in
capital172,293¥30,080 ¥49,135 ¥5,483

Thousands of U.S. dollars (Note 1)

Number ofshares ofcommonstock(thousands)

Commonstock

Generalreserves

Specialreserves

Retainedearnings

Balance as at February 28, 2001:
Reversal of reserve for deferred
capital gains on property
Cash dividends
Transfer to legal reserve
Net income for the year ended
February 28, 2002
Net revaluation loss of land (Note 5)
Net unrealized loss onavailable-for-sale securities
Treasury stock, at cost (Note 1. (2)172,293$223,893 $365,724 $38,690 $ 0000— $690,056$536$26,878 $ 000—

Balance as at February 28, 2002

172,293

Additional
paid-in
capitalLegalreserveNet
revaluation
loss of
land

$ 0—

—
—
—

—
—
—

—
—
—

—
—
2,121

—
—
—

—
—
—

(275)
—
—

275
(21,161)(2,121)

—
—
—

—
—
—

—
—

—
—

—
—

—
—

—
(17,477)————

43,357
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

(1,898)——(127)$223,893 $365,724 $40,811 $(17,477) $690,056$261$47,228$(1,898)$(127)

The accompanying notes are an integral part of these statements.

31

Notes to

Non-Consolidated Financial Statements

Onward Kashiyama Co., Ltd.

1. Basis of Presentation of the Non-Consolidated Financial Statements(1) Accounting Principles
The accompanying non-consolidated financial statements have been prepared from the accounts maintained by ONWARD KASHIYAMA Co.,
Ltd. (the “Company”), in accordance with the provisions set forth in the Japanese Commercial Code (the “Code”) and the Securities andExchange Law and in conformity with accounting principles and practices generally accepted in Japan, which are different in certain respects
as to application and disclosure requirements of International Accounting Standards.
Certain items presented in the non-consolidated financial statements submitted to the Director of the Kanto Finance Bureau in Japan havebeen reclassified for the convenience of readers.
The accompanying non-consolidated financial statements are not intended to present the financial position or results of operations of theCompany in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan.
Amounts in U.S. dollars are included solely for the convenience of readers outside of Japan. The rate of ¥134.35=US$1, the rate of exchange
at February 28, 2002, has been used in translation. The inclusion of such amounts is not intended to imply that Japanese yen have been or
could be readily converted, realized or settled in U.S. dollars at that rate or any other rate.
(2) Effect of Adoption of New Accounting Standards
Retirement Benefits
Effective from the year ended February 28, 2002, the Company adopted the “New Accounting Standard for Retirement Benefits” (issued onJune 16, 1998, by the Business Accounting Deliberation Council). The Company contributed securities to an employee retirement benefit trust,in order to fund the transition amount arising from adopting the new standards of ¥13,940 million ($103,759 thousand) at the beginning of theperiod, and a gain on securities contributed to the adopting trust of ¥8,542 million ($63,580 thousand) is credited to income. As a result of the
new standard, net pension expense for the year ended February 28, 2002 increased by ¥14,118 million ($105,084 thousand) and operating
income decreased by ¥179 million ($1,332 thousand) and income before income taxes by ¥5,577 million ($41,511 thousand).
Financial Instruments
Effective from the year ended February 28, 2002, the Company adopted the new Japanese accounting standard for financial instruments.
Following this adoption, the valuation method of securities has changed and income before income taxes for the year ended February 28, 2002
increased by ¥546 million ($4,064 thousand) compared with the amount which would have been reported if the previous standard had been
applied consistently.
Foreign Currency Translation
Effective from the year ended February 28, 2002, the Company adopted the “Revised Accounting Standard for Foreign Currency Translation”(issued on October 22, 1999, by the Business Accounting Deliberation Council). The adoption of the new method had no material impact on
the accompanying non-consolidated financial statements.
Treasury Stocks
Effective from the fiscal year ended February 28, 2002, under the amended financial statements regulations in Japan, treasury stocks, whichwere previously presented in “Current assets”, have been presented as a deduction of “Stockholders’ equity”.

2. Summary of Significant Accounting Policies(1) Inventories
Inventories are stated at cost, cost being determined generally by the last purchase invoice price method which approximates the first-in
first-out cost method. Merchandise held at retail stores is valued at the retail cost method.
When the net realizable value of certain classes of inventories (consisting primarily of seasonal merchandise which remains unsold after theend of such seasons) is substantially less than the carrying value (cost), and the decline of value is not expected to be recovered in the near
future, appropriate write-downs are recorded on such inventory items. The amount of write-down is determined based on the experience ofsales of merchandise similar to those unsold items during the immediately preceding three years. At February 28, 2002, the recorded writedown is ¥6,569 million ($48,895 thousand).

32

(2) Investments in Securities
Refer to Note 2. (5) to the consolidated financial statements.
(3) Derivative Transactions
Refer to Note 2. (6) to the consolidated financial statements.
(4) Hedge Accounting
Refer to Note 2. (7) to the consolidated financial statements.
(5) Property, Plant and Equipment
Property, plant and equipment are generally stated at cost. Depreciation is computed using the declining-balance method, at rates based on
the estimated useful lives of assets which are prescribed by Japanese income tax regulations.
According to an amendment of Japanese income tax regulations, depreciation other than improvements for buildings which were acquiredon or after 1st April 1998, has been computed by the straight-line method.
(6) Amortization
Refer to Note 2. (9) to the consolidated financial statements.
(7) Income Taxes
Refer to Note 2. (10) to the consolidated financial statements.
(8) Allowances
Accrued retirement benefits are provided for at the present value of the projected benefit obligation less the estimated fair value of plan assets
at the balance sheet date.
Employees with more than 2 years of service with the Company are generally entitled to lump-sum retirement benefits determined byreference to the current rate of pay, length of service and conditions under which termination occurs. The Company has a funded pension
plan which covers 55% of retirement benefits payable to employees who retire at the mandatory retirement age. Until the year ended February
28, 2001, the Company adopted a policy to provide for accrued retirement benefits (unfunded) in an amount equivalent to 100%of the liabilities payable to all employees eligible for such benefits upon their voluntary retirement at the balance sheet date, less the accumulated balance of fund assets for the pension plan.
As at February 28, 2001, fund assets aggregated ¥6,813 million ($58,531 thousand), with the past service liabilities being amortized overa 6-year period.
Effective from the year ended February 28, 2002, the Company adopted the “New Accounting Standard for Retirement Benefits.” The unrecognized difference arising from adopting the new standard (the “transition adjustment”) of ¥13,940 million ($103,759 thousand) has been fully
amortized for the year ended February 28, 2002. Unrecognized actuarial differences are amortized on a straight-line basis over 10-year period
from the year following that in which they arise.
The provisions for loss of guarantee obligations provided in case the Company is obliged to pay for the guaranteed subsidiaries. In estimating
the allowance, the Company considers the financial condition of each subsidiary.
(9) Accounting for Leases
Refer to Note 2. (12) to the consolidated financial statements.
(10) Accounting for Consumption Tax
Refer to Note 2. (13) to the consolidated financial statements.
(11) Dividends
Refer to Note 2. (14) to the consolidated financial statements.
(12) Net Income and Dividends per Share
Refer to Note 2. (15) to the consolidated financial statements.

33

3. Inventories
Inventories at February 28, 2001 and 2002, consisted of the following:Thousands of
U.S. dollars

Millions of yen

Merchandise and finished goods
Raw materials
Work-in-process
Supplies

2001

2002

2002

¥15,016
1,852
1,561
141

¥15,252
1,315
1,051
149

$113,524
9,788
7,823
1,109

¥18,570¥17,767$132,244

4. Property, Plant and Equipment
The Japanese tax regulations allowed a company to defer capital gains on the sales of real property if the company intended to offset suchgains against the cost of newly acquired fixed assets. When such accounting was followed, the cost of the new fixed assets was reduced to theextent of the deferred capital gains thereby affecting related depreciation charges and accumulated depreciation.
Property, plant and equipment at February 28, 2002, was reduced by ¥8,854 million ($65,902 thousand), representing accumulated deferredgains from historic sales.

5. Revaluation of Land
Refer to Note 9 in the consolidated financial statements.

6. Lease Transactions
The Company’s finance lease contracts which are not deemed to transfer the ownership of the leased assets to lessees are not capitalized,
which is permitted by the Japanese accounting principles. Certain key information on such lease contracts of the Company for the years ended
February 28, 2001 and 2002, is as follows.
Assumed data as to acquisition cost, accumulated depreciation, net book value and depreciation expense of the leased assets, which
included the portion of interest thereon, were summarized at February 28, 2001 and 2002 as follows:
Millions of yen
2001

34

Tools, furniture,and fixtures

Other

Acquisition cost
Accumulated depreciation¥1,083
(583)

¥224
(126)

Net book value¥0,500¥098

Thousands of U.S. dollars
2002

Total

Tools, furniture,and fixtures

Other¥1,307(709)¥1,473
(603)

¥290
(122)

¥0,598¥0,870

¥168

2002
Total

Tools, furniture,and fixtures

Other

Total

¥1,763(725)$10,964(4,488)$2,158(908)$13,122(5,396)¥1,038$06,476$1,250$07,726

The scheduled maturities of future lease payments on such lease contracts as of February 28, 2001 and 2002, are as follows:
Thousands of
U.S. dollars

Millions of yen

Scheduled maturities of future lease payments:
Due within one year
Due over one year

2001

2002

2002

¥252
346

¥0,346692$2,575
5,151¥598¥1,038$7,726
Thousands of
U.S. dollars

Millions of yen

Lease expenses for the year
Depreciation

2001

2002

2002

¥281
281

¥338
338

$2,5162,516

7. Income Taxes
Deferred tax assets and liabilities as at February 28, 2001 and 2002 consisted of the following elements:
Thousands of
U.S. dollars

Millions of yen

Deferred Tax Assets:
Valuation loss on inventories
Evaluation loss on investments in subsidiaries
Excess amount of tax deductible employees’ accrued retirement benefits
Allowance for directors’ retirement benefits
Provision for guarantee obligations
Others

2001

2002

2002

¥01,201
3,006
2,155
595
1,626
2,017

¥01,532
2,799
8,007
613
1,626
4,843

$011,403
20,83459,598
4,563
12,10336,047

10,60019,420144,548—(25)(3,589)(25)(26,714)(186)

Total deferred tax assets
Deferred Tax Liabilities:
Gain on securities contributed to an employee retirement benefit trust
Provision for deferred capital gains on real property
Total deferred tax liabilities(25)(3,614)(26,900)

Net deferred tax assets¥10,575¥15,806$117,648

Reconciliation between statutory tax rate and effective tax rate as at February 28, 2001 and 2002:%

Statutory tax rate
(Reconciliation)
Nondeductible items (entertainment, expenses etc.)
Nontaxable items (dividend income, etc.)
Inhabitant tax per capita basis
Effective tax rate

2001

2002

42.0)%

42.0)%

16.6
(1.9)
0.5

3.0
(1.0)
0.7

(26.8)%

44.7)%

Please also refer to Note 8 to the consolidated financial statements.

35

8. Contingent Liabilities
The Company was contingently liable as a guarantor for bank loans made by certain subsidiaries and affiliates of the Company. The outstanding
guarantees as at February 28, 2002 aggregated ¥20,030 million ($149,088 thousand).

9. Legal Reserve and Appropriation of Retained Earnings
Refer to Note 11 to the consolidated financial statements.

10. Subsequent Event
Refer to Note 12 to the consolidated financial statements.

36

Report of

Independent Accountants

The Board of Directors of Onward Kashiyama Co., Ltd.:We have audited the accompanying non-consolidated balance sheets of ONWARD KASHIYAMA Co., Ltd., as of February 28, 2001 and 2002,
and the related non-consolidated statements of income and retained earnings, and of stockholders’ equity for each of the three years in the
period ended February 28, 2002, all expressed in Japanese yen. Our audits were made in accordance with auditing standards, procedures andpractices generally accepted and applied in Japan and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the non-consolidated financial statements referred to above present fairly, in all material respects, the non-consolidated financial
position of ONWARD KASHIYAMA Co., Ltd., as of February 28, 2001 and 2002, and the results of its operations for each of the three years in
the period ended February 28, 2002, in conformity with accounting principles and practices generally accepted in Japan (see Note 1) applied
on a consistent basis.

The amounts expressed in U.S. dollars, provided solely for the convenience of the reader, have been translated on the basis set forth in Note 1
to the accompanying non-consolidated financial statements.

ChuoAoyama Audit Corporation

Tokyo, JapanMay 23, 2002

37

Board of

Directors<DIRECTORS><AUDITORS>

Executive Officers

ChairmanStanding Auditors

Akio Date

Akira Baba*

Katsutoshi Kashiyama

Isao Yamane

Yukio Sugimoto

Nobutake Matsuo

Vice Chairman

Yasumitsu Miyamoto

Hideo Hisamichi

Sadajiro Gion*

Masao Kusunoki

Susumu Maeda
Masaaki Yoshizawa

President
Takeshi Hirouchi*

Kisaku Uragami<OFFICERS>

Hiroshi Imai

Senior Managing Executive

Toshio Tobita

Vice President

Officers

Shigeru Kamakari

Kenji Takada*Fumiyasu Yamashita

Yoshihiko Sato

Masaru Kusaki

Wataru Sakai

Senior Managing Directors

Managing Executive Officers

Hideo Matsumoto

Kinshi Kurihara

Takashi Nakamura

Kenichiro Tamai

Tenji Tanaka

Yoshiaki Hanada
Ryuji Horie

Managing Directors

Tetsuji Wada

Masao Ohno

Kentaro Mizuno

Kazuya Baba

Shigeru Uemura
Masabumi Kiyohara

Directors
Takaharu Torikoshi
Ohtsuka Yuji

*Representative Director

38

Tadayoshi Kobayashi

As of May 23, 2002

Organization
Chart

Board of Directors
Chairman
Auditors

Onward GroupManagement Council
Vice Chairman
President

Vice President (Director in Charge of
Onward Apparel Group Business)

Director in Charge of Affiliated Companies
Director in Charge of
Onward Apparel Group Production
Director in Charge of Onward Apparel Group
Direct Sales Development Business Group

Director in Charge of Logistics
for Onward Group

Men’s Office Clothes Business Group
Men’s Casual Clothes Business GroupManagement Planning
DivisionSportswear Business Group
Women’s Fashion Business Group

Secretarial Office
NIJUSANKU Business GroupKUMIKYOKU Business Group

Public Relations &Advertising Division
Customer Service
Department
General Affairs
Division
Onward ResearchInstitute

ICB Business Group
Jean-Paul Gaultier Business Group
Director in
Charge ofOperations
Headquarters

Paul Smith Business Group
Michael Kors Business Group
J. Press Business GroupKUMIKYOKU FAM Business GroupChildren’s Fashion Business GroupAccounting Division

Lifestyle Goods Business GroupNew Business Group

Human Resources
Division

Kimono Business Group

Logistics Division

Research & Development
Business Group
Direct Sales Department
Business GroupTokyo Branch
Kanto Branch
Osaka Branch
Fukuoka Branch

Production Division
Nagoya BranchBusiness Promotion Office
Sapporo Branch
Accounting Management OfficeSendai Branch
Sales Promotion Division
Hiroshima BranchInternational Operations BusinessGroup

Trading Business
Division

Trading Business Group
Kimono Sales
Business Division

As of May 23, 2002

39

Principal

Subsidiaries

OVERSEAS SUBSIDIARIES
J. PRESS INC.
262 York Street,
New Haven, CT 06511, U.S.A.
Tel: (1) 203-772-1310
ONWARD KASHIYAMAFRANCE S.A.
6, Rue Vivienne,
75002 Paris, France
Tel: (33) 1-5504-8787
ONWARD KASHIYAMA
U.S.A. INC.
530 Seventh Avenue,
29th Floor,
New York, N.Y. 10018, U.S.A.
Tel: (1) 212-997-3600
ONWARD KASHIYAMAHONG KONG LTD.
UNIT 1208-9, Lippo Sun Plaza,
28 Canton Road, T.S.T.,
Kowloon, Hong Kong
Tel: (852) 2367-2055, 2721-7068
ONWARD KASHIYAMA U.K. LTD.
47, Conduit Street,
W1 London, U.K.
Tel: (44) 20-7494-2074
ONWARD KASHIYAMACANADA INC.
Suit 3600,
Toronto Dominion Bank Tower,
Toronto-Dominion Centre,
Toronto, Ontario, Canada M5K ING6

GIBO CO. S.p.A.
Via Cassia 69, 50029 Tavarnuzze,
Firenze, Italy
Tel: (39) 055-237-2020

DOMESTIC SUBSIDIARIESONWARD ITALIA S.p.A.
Via Della Spiga 9, 20121 Milano, Italy
Tel: (39) 02-783-667

ACTY 21 CO., LTD.

SHANGHAI ONWARD
FASHION CO., LTD.
5F Jinjiang Dickson Center,
400# Changle Road, Shanghai,
China
Tel: (86) 21-6466-6466

OAK CO., LTD.

ONWARD TRADING (SHANGHAI)
CO,. LTD.
5F Jinjiang Dickson Center,
400# Changle Road, Shanghai,
China
Tel: (86) 21-3406-0600

BUS STOP CO., LTD.

ONWARD RETAIL L.L.C.
499 Seventh Avenue,
7th & 8th Floors, South Tower,
New York, N.Y. 10018, U.S.A.
Tel: (1) 212-629-6100
ONWARD KASHIYAMAKOREA CO., LTD.
KMD BLDG., 4F, 652-16 Shinsa-Dong,
Kangnam-ku, Seoul, Korea
Tel: (82) 2-548-5841

IMPACT 21 CO., LTD.

PARTNER 21 CO., LTD.

CHACOTT CO., LTD.
ON BUSINESS TREND CO., LTD.
DONNA KARAN JAPAN K.K.

PERSONAL ORDER JAPANCO., LTD.
+A VIA BUS CO., LTD.
FIELD DREAM CO., LTD.
<SERVICES>ACROSS TRANSPORT CO., LTD.
ACROSS SERVICE CO., LTD.
ONWARD CREATIVE CENTER
CO., LTD.
ONWARD LIFE DESIGNNETWORK CO., LTD.

HORLOGE SAINT BENOIT S.A.
22 Rue Saint Benoit, 75006
Paris, France
Tel: (33) 1-4544-1118

EXCEL CO., LTD.

ONWARD BEACH RESORTGUAM, INC.
445 Governor Carlos G. Camacho Road,
Tamuning, Guam 96911, U.S.A.
Tel: (1) 671-647-7777

O & K CO., LTD.

FREED OF LONDON LTD.
94 Street, Martin’s Lane,
London WC2N 4AT
Tel: (44) 071-240-0432

40<Apparel and Textile Products><RESORTS>

ONWARD MARINE CO., LTD.
ONWARD BEACH RESORT
CO., LTD.

As of May 23, 2002

Corporate

Data and Offices

Head Office

3-10-5, Nihonbashi, Chuo-ku, Tokyo 103-8239
Tel: (03) 3272-2317
Fax: (03) 3272-2314
URL: http://www.onward.co.jp

Established

September 1947

Paid-in Capital¥30,080 million

Common Stock

Authorized—400,000,000 shares
Issued—172,292,587 shares

Stock Listings

Tokyo, Osaka, and Nagoya stock exchanges

Transfer Agent

UFJ Trust Bank Ltd.

Number of Employees

1,910

OFFICES
Head Office
3-10-5, Nihonbashi,
Chuo-ku, Tokyo
Tel: (03) 3272-2317
Tokyo Shibaura Bldg. No. 1
3-9-32, Kaigan,
Minato-ku, Tokyo
Tel: (03) 5476-5102
Tokyo Shibaura Bldg. No. 2
3-11-6, Kaigan,
Minato-ku, Tokyo
Tel: (03) 5476-5102
Tokyo Shibaura Bldg. No. 3
3-14-11, Kaigan,
Minato-ku, Tokyo
Tel: (03) 5476-5102
Tokyo Shibaura Bldg. No. 4
3-14-21, Kaigan,
Minato-ku, Tokyo
Tel: (03) 5476-5102
Atsugi Distribution Center
1434, Aikokatamachi,
Atsugi, Kanagawa
Tel: (046) 230-2520
Osaka Regional Office
4-3-6, Honmachi,
Chuo-ku, Osaka
Tel: (06) 6252-1010

Miyakojima Operations Center
5-10-7, Takadono,
Asahi-ku, Osaka
Tel: (06) 6952-3211
Osaka Plant
2-10, Kusunekitamachi,
Neyagawa, Osaka
Tel: (0720) 24-3311
Kanto Regional Office
3-11-6, Kaigan,
Minato-ku, Tokyo
Tel: (03) 5476-5201
Fukuoka Regional Office
2-6-43, Daimyo,
Chuo-ku, Fukuoka
Tel: (092) 712-2111
Sapporo Regional Office16-1, Kitaichijonishi,
Chuo-ku, Sapporo
Tel: (011) 644-4440
Sendai Regional Office
1-6-8, Kamisugi,
Aoba-ku, Sendai
Tel: (022) 262-8411

Sendai Regional Office
Ayashi Distribution Center
2-2-22, Ochiai,
Aoba-ku, Sendai
Tel: (022) 392-8585
Nagoya Regional Office
4-11-31, Meiekiminami,
Nakamura-ku, Nagoya
Tel: (052) 563-2311
Nagoya Inazawa Operation Center
79-3, Shimozu, Ushiarai-cho,Inazawa, Aichi
Tel: (0587) 24-5851
Hiroshima Regional Office
3-12-10, Minami-Kanon,
Nishi-ku, Hiroshima
Tel: (082) 293-2311
Institute Onward S ōken
3-9-3, Ushikubo,
Tsuzuki-ku, Yokohama
Tel: (045) 912-8812

As of February 28, 2002

41

Onward Kashiyama Co., Ltd.

Printed in Japan

Annual Report 2002

Head Office: 3-10-5, Nihonbashi, Chuo-ku, Tokyo 103-8239
Tel: (03) 3272-2317