FY02/23 Q1 Results Presentation Supplement

July 7, 2022
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Hello, I’m Osamu Sato, director in charge of finance, accounting, and investor relations at Onward Holdings
Co., Ltd.
I would like to take this opportunity to thank you all for your ongoing support.
For this presentation I’ll be using the Consolidated Financial Results and Results Presentation Supplement
to provide an overview of our financial results for the first quarter.
Let’s start with the cover of the Q1 Consolidated Financial Results.

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

Net sales totaled ¥44.551 billion, down 3.2% year on year. This was mainly due to last year’s sale of the
Italian business. Operating profit was ¥2.005 billion, up 74.8% year on year. Recurring profit was ¥2.638
billion, up 33.4% year on year. Profit attributable to owners of parent was ¥1.823 billion, down 11.5% year
on year, due to the gain on sales of non‐current assets.
Now onto slide3 of the Results Presentation Supplement.

Contents

FY02/23 Q1 Consolidated Results

2・Highlights

3

・Consolidated Results

4・Results by Segment

5・Results by Group Company

6

FY02/23 1H Forecast

8

・Consolidated Forecast

9

TOPICS
Financial Situation
DATA BOOK

10
15
17

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

1

FY02/23 Q1 Consolidated Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

2

FY02/23 Q1 Highlights
Market recovery and OMO measures enabled domestic businessto drive an increase in sales and profits
Excluding the impact of the sale of the Italian business and Guam hotel business, and discontinued Onward Kashiyama stores,
net sales increased 5.8 billion yen (+15%) and operating profit increased 1.3 billion yen (+175%)■ There was an increase in domestic net sales in both apparel and lifestyle with the easingof COVID-19 movement restrictions
There was a particularly substantial increase in net sales in our core operating company Onward
Kashiyama, driven by OMO stores that introduced a “Click & Try” service, with sales at existing storesexcluding discontinued stores up 4.8 billion yen (+22%), and up 3.4 billion yen (+15%) across allstores.
■ There was a substantial increase in operating profit of 0.9 billion yen (+75%),
or 1.3 billion yen (+175%) excluding the sale and discontinuation of businesses
Gross profit margin improved by 3.8 pp from 51.7% in Q1 to 55.5% due to restricting discount sales,
thorough centralized inventory control, etc.
■ 1H and full year outlook remain unchanged
The financial results forecast published on April 7, 2022 remains unchanged due to the many
uncertainties in the business environment, such as the number of COVID-19 cases, exchange rates,
raw material price trends and so on.
* Sold and discontinued businesses
Q1 results for the sold Italian business and Guam hotel business and discontinued Onward Kashiyama
stores:
Net sales: 7.2 billion yen, gross profit: 3.2 billion yen, operating profit: 0.4 billion yen© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

3

Here are the highlights of the first quarter’s financial results.
In the first quarter, domestic businesses improved due to market recovery and OMO measures, while theconsolidated results as a whole show a substantial increase in sales and profits. There are three main
points here.
First, there was a substantial increase in net sales in the domestic apparel and lifestyle businesses due tothe easing of COVID‐19 movement restrictions. In particular, our core operating company Onward
Kashiyama contributed greatly to an increase in sales, which were up ¥4.8 billion, an increase of 22% year
on year, across existing stores excluding discontinued stores, and up ¥3.4 billion, an increase of 15% year
on year, across all stores.
Second, operating profit was up ¥900 million, an increase of 75% year on year. Excluding the impact of thesale and discontinuation of businesses, the increase was ¥1.3 billion, up 175% year on year in real terms.
With regard to businesses sold and discontinued, both the Italian business and Guam hotel business weresold while a number of Kashiyama stores were discontinued. They had a total operating profit of ¥400
million in the first quarter of the previous fiscal year for temporary reasons, though were loss‐making
businesses across the full year.
And third, on the topic of first half and full year forecasts, the financial results forecast published on April 7,
2022 remains unchanged due to the many uncertainties in the business environment, such as the numberof COVID‐19 cases, exchange rates, raw material price trends and so on.
Now let’s turn to slide 4.

FY02/23 Q1 Consolidated Results
There was a 1.5 billion yen decrease in Q1 net sales (-3%) and a 0.9 billion yen increase inoperating profit (+75%) to 2.0 billion yen
Excluding the sale and discontinuation of businesses, net sales increased
by 5.8 billion yen (+15%) and operating profit increased by 1.3 billion yen (+175%)(Million yen)

Q1 Results
FY02/231

FY02/22Net Sales

44,551

46,022

Q1 Results (Excl. businesses which were sold/discontinued)

ChangeYoY

38,787+5,764114.9%

103.9%

20,571+4,147120.2%

53.0%

+2.5%

19,843+2,870

51.2%

-0.2%

24,71823,780

+938

55.5%

51.7%

+3.8%

SG&A Expenses

22,713

22,632+81（% of Sales）

51.0%

49.2%

+1.8%

Operating Profit

2,005

1,147

+858

（% of Sales）

4.5%

2.5%

+2.0%

5

Recurring Profit

2,638

1,976

+662

6

Net Profit

1,823

2,060

-237

7

EBITDA*

3,365

2,447

+918

4

Change96.8%

Gross Profit

3

FY02/22-1,471（% of Sales）

2

YoY

100.4%

174.8%

Effects ofbusinesses
which weresold/discontinued

7,235
3,209
44.4%

114.5%

2,789
38.5%

728

+1,277

1.9%

+2.6%

275.4%

420

133.4%

1,357+1,281

194.4%

88.5%

1,803

+20

101.1%

257

137.5%

2,028+1,337165.9%

420

5.8%
619

Note: EBITDA = operating profit + depreciation and amortization.

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

4

The consolidated results for the first quarter are outlined in orange on the left, while the figures outlined in orange
on the right show a comparison of the changes excluding the impact of the sold Italian business and Guam hotelbusiness and discontinued Onward Kashiyama stores.
Net sales, the first row on the left, were down ¥1.5 billion, a year on year decrease of 3.2%, due to the considerable
impact of withdrawing from the Italian business and selling the Guam business. However, excluding the impact of
the sold businesses and discontinued stores, sales were up ¥5.8 billion, an increase of 14.9%.
There has been a recovery in the physical stores of our apparel and lifestyle businesses in tandem with the easing of
COVID‐19 movement restrictions, and at the same time, we have seen the impact of introducing OMO services instores.
Gross profit, shown in row 2, increased 3.9% year on year to ¥24.718 billion, while the gross profit margin improved
to 55.5%, a 3.8 percentage point increase from last year’s 51.7%. This change was due to a substantial increase in full
price sales at Onward Kashiyama, efficiencies associated with restricting ongoing discount sales and centralized
inventory control, as well as the sale of the low margin Italian business.
SG&A expenses, as you can see in row 3, increased slightly to ¥22.713 billion. Excluding the impact of the sale anddiscontinuation of businesses, SG&A expenses increased by ¥2.9 billion, however this was due to an increase in net
sales and appropriate cost controls.
As a result, operating profit, displayed in row 4, was ¥2.005 billion, a 74.8% increase year on year.
In the area of non‐operating profit/loss between operating profit, shown in row 4, and recurring profit, shown in row
5, recurring profit was up ¥600 million from operating profit to ¥2.638 billion, a 33.4% increase year on year, due toan increase in foreign exchange gains and other factors in the first quarter.
In row 6, profit attributable to owners of parent was down ¥800 million from recurring profit, as shown in row 5.
Taking into account extraordinary gains of ¥1.2 billion from the sale of the Guam Resort, extraordinary losses of¥500 million of impairment loss on non‐current assets, and other factors such as income taxes, profit attributable toowners of parent was ¥1.823 billion.
EBITDA, shown in row 7, was ¥3.365 billion, a 37.5% increase year on year.
Now on to slide 5.

FY02/23 Q1 Results by Segment
There was an increase in net sales and operating profit in Q1 in both domestic apparel andlifestyle businesses
Net sales increased by 3.3 billion yen (+8%) and operating profit increased by 1.6 billion yen(Million yen)(+129%)
Q1 Results
FY02/23

1
2
3
4

D
o
m
e
s
t
i
c

FY02/22

ChangeYoY

Net Sales

33,44330,927+2,516108.1%

Operating Profit

2,137

705

+1,432303.1%Net Sales

9,808

8,979

+829

109.2%

Operating Profit

744

552

+192

134.8%

ApparelLifestyle

Net Sales

43,251

39,906+3,345108.4%

6

Operating Profit

2,881

1,257

+1,624229.2%

7

Net Sales

3,235

8,297

-5,062

39.0%

Operating Profit

-546

260

-806

-

Net Sales

497

346

+151

143.6%

Operating Profit

-67

-247

+180

43.2%

5

8
9
10

O
v
e
r
s
e
a
s

Domestic Total

ApparelLifestyle

Net Sales

3,732

8,643

-4,911

12

Operating Profit

-613

13

-626

-

13

Net Sales

44,551

46,022-1,471

96.8%

Operating Profit

2,005

1,147

+858

174.8%

11

Overseas Total

Consolidated Total
14

Domestic Apparel (Onward Kashiyama, Onward Trading, Island,
Onward Personal Style, and 10 other companies; 14 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato,
KASHIYAMA DAIKANYAMA, and 6 other companies; 10 companies in total)

Overseas Apparel (8 companies in the JOSEPH Group, J.PRESS,
Onward Fashion Trading and 8 other companies; 18 companies in total)
Overseas Lifestyle (FREED OF LONDON and 6 other companies; 7 companies in total)

Note: The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.
Note: Full year: December－February for Europe, and January－March for Asia and America* There was a substantial 4.9 billion yen fall in sales in overseas businesses due to the sale of the Italianbusiness and Guam hotel business, stagnation in the Asian market due to COVID-19 and the impactof the war in Ukraine. Consequently, overseas business posted an operating loss of 0.6 billion yen.
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

5

Here we can see the consolidated results broken down by business segment.
As shown by the figures outlined in orange, there was an increase in sales and operating profits in both thedomestic apparel and lifestyle businesses, and net sales of domestic total were up ¥3.3 billion, an increaseof 8.4% year on year. Operating profit of domestic total was up ¥1.6 billion, an increase of 129.2% year on
year.
Next, we’ll look at slide 6.

FY02/23 Q1 Results by Group Company
There was a substantial increase in Onward Kashiyama sales and operating profit(Million yen)

Q1 Results
Sales
FY02/23
Onward Kashiyama + HD

1
2
3
4
5

D
o
m
e
s
t
i
c

Operating Profit

FY02/22

26,135

Change22,704

FY02/23

FY02/22

Change+3,431

1,752

197+1,555

Onward Trading

3,822

4,568

-746

461

875

-414

Island

1,465

1,344

+121

40

-70

+110

Chacott

2,302

2,148

+154

133

59

+74

Creative Yoko

1,265

1,090

+175

70

48

+22

Yamato

5,153

4,714

+439

301

292

+9

7

Other

3,109

3,338

-229

124

-144

+268

8

Domestic Subtotal

17,116

17,202

-86

1,129

1,060

+69

9

Europe

2,318

7,301

-4,983

-280

286

-566

222

125

+97

-117

-132

+15

1,128

1,146

-18

-139

50

-189

6

10
11
12
13
14

(Excl.Onward Kashiyama + HD)

O
v
e
r
s
e
a
s

America
Asia
Guam Resort

64

71

-7

-77

-191

+114

Overseas Subtotal

3,732

8,643

-4,911

-613

13

-626

Consolidated Total

44,551

46,022-1,471

2,005

1,147

+858

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

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

6

Here we have sales and operating profit broken down by company.
One key point here is the substantial increase in Kashiyama + HD sales and operating profit, as shown in row 1.
Net sales at Onward Kashiyama + HD were ¥26.1 billion, an increase of 15% year on year. As a result of a recovery incustomer traffic after COVID‐19 measures and the expanded introduction of "Click & Try", physical stores
experienced a 21% increase in sales year on year. In addition, there was an increase of ¥1.6 billion in operating profit
year on year due to an improvement in gross profit margins from implementing sales initiatives such as restricting
discount sales. The substantial increase in sales and profit at Onward Kashiyama contributed to the overall increasein consolidated profit.
Domestic group companies other than Onward Kashiyama performed steadily overall.
Now we turn to row 9. In the Europe total, net sales were down by around ¥5 billion year on year, due to theprevious year’s performance of the Italian business, from which we have withdrawn.
Onto row 10, and we can see that in the U.S. total, there was a slight increase in net sales, due to factors such as the
expansion of J. Press e‐commerce sales, while the degree of deficit in operating profitability reduced slightly. The
company is negotiating the cancellation of contracts on high rent stores and expects to achieve profitability in fiscal
2024.
The Asia total, shown in row 11, includes increases in sales at production companies in Dalian and elsewhere, butalso includes the decrease in sales and operating profits at sales companies in Hong Kong and other locations which
struggled due to the impact of COVID‐19. It is expected that profitability will be achieved as the COVID‐19 situation
improves.
The Guam Resort total is shown in row 12. Here, the deficit has been reduced after the sale of the hotel business,
which had faced a severe business environment brought about by the COVID‐19 pandemic, to Hoshino Resorts in
March of this year.
This leads us to row 13, the overseas group. As a whole, there was a ¥4.9 billion decrease in net sales and an
operating loss of ¥600 million. These results were impacted by the sale of the Italian business, the COVID‐19
pandemic and the war in Ukraine.
Now let’s turn to slide 7.

Q1 Results Waterfall Chart of Increases/Decreases by Company
Q1+4,875

Q1

Q1

Q1

Q1

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©Copyright ONWARD HOLDINGS CO.,LTD.

7

We’ve already looked at the performance of each Group company, so now let’s take a look at the waterfall
chart showing a comparison of net sales and operating profitability in the first quarter with the same
period last year.
We can see that the two significant factors in the change in net sales and operating profitability were theincrease in sales and operating profit at Onward Kashiyama, and the decrease in sales and operating profits
due to the withdrawal from the Europe/Italian business.
While there was a ¥3.4 billion increase in net sales at Onward Kashiyama, the Italian business’s ¥5 billion
decrease in sales is larger, resulting in a decrease in overall consolidated sales. When looking at operating
profit, the Italian business was down ¥600 million, however, because Onward Kashiyama was up by ¥1.6
billion, there was an overall increase here.
Next, let’s look at slide 9.

FY02/23 1H Forecast© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

8

FY02/23 1H Consolidated Forecast
The financial results forecast published on April 7, 2022 remains unchanged dueto the many uncertainties in the business environment, such as the numberof COVID-19 cases, exchange rates, raw material price trends and so on.
(Million yen)

Q1 Results
FY02/231

FY02/22Net Sales

44,551

46,022

1H Forecast（announced on 2022.4.7）

ChangeYoY

FY02/23

FY02/22

ChangeYoY-1,471

96.8%

77,00080,785-3,78595.3%

103.9%

40,50052.6%

41,018

-518

98.7%

50.8%

+1.8%

42,30044,312-2,012

54.9%

54.9%

±0.0%

-1,800-3,294+1,494---Gross Profit

24,71823,780+938（% of Sales）

55.5%

51.7%

+3.8%

SG&A Expenses

22,713

22,632+81（% of Sales）

51.0%

49.2%

+1.8%

Operating Profit

2,005

1,147

+858

（% of Sales）

4.5%

2.5%

+2.0%

5 Recurring Profit

2,638

1,976

+662

133.5%-1,750-2,862+1,112-

6

Net Profit

1,823

2,060

-237

88.5%

-1,2507,448-8,698-

7

EBITDA*

3,365

2,447

+918

137.5%

650-687+1,337-2

3

4

100.4%

174.8%

95.5%

Note: EBITDA = operating profit + depreciation and amortization.

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

9

The forecast figures for the first half can be seen in the right column. For the full year, we forecast net salesof ¥168.7 billion, operating profit of ¥2.1 billion, recurring profit of ¥2.05 billion, and profit attributable toowners of parent of ¥1.7 billion. These are the forecast figures announced on April 7, 2022.
As I explained earlier, operating profit in the first quarter has been progressing at ¥2.0 billion compared to
the full year forecast of ¥2.1 billion. However, due to the many uncertainties in the business environment,such as the number of COVID‐19 cases, exchange rates, raw material price trends and so on, the financial
results forecast published on April 7, 2022 remain unchanged.
From slide 10 we’ll be looking at topics.

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

10

TOPICS
Onward Kashiyama’s “Click & Try” OMO Service
has been introduced to 290 of 830 stores nationwide
This in-store service allows customers to try on and buy almost all products offeredby the fashion online shopping site ONWARD CROSSET
20. Please indicate your reasons for buying in store and not
at ONWARD CROSSET.

I wanted to check the item
I wanted to try it on before purchasing
I wanted the item immediately
I wanted alterations
I wanted to buy
from a friendly staff member
I wanted to pay by cash
I am concerned aboutsharing personal information
I am not comfortableusing a smartphone or computer
Other
Other: There are special offers/discounts at department stores;
Number of respondents: 52,467
It was sold out online, etc.

“Click & Try”- implemented stores outperformed non-“Click & Try”- implemented
stores by 20pp when measured against the sales performance of existing storesin 2019.
“Click & Try”- implemented stores recovered to 97% of 2019 performance, while
non-“Click and Try”- implemented stores recovered to 77%.
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

11

Slide 11 addresses the introduction of Onward Kashiyama’s OMO service "Click & Try". The OMO service
has been rolled out in approximately a third of Onward Kashiyama stores, and has contributed to theimprovement of Onward Kashiyama.

TOPICS

There was substantial sales growth in UNFILO,
Onward Kashiyama’s new brand launchedin fall of 2021
UNFILO was launched in fall 2021 as a functional and fashionableclothing brand with the concept of providing “clothes to lift your mood,
365 days a year, no matter the occasion or weather”, and both physicalstore and online net sales have since expanded.
UNFILO has created hit products such as the "Saiai jogging pants",
which has sold 20,000 units, and environmentally friendly sneakers
called "steppi".

Brand flagship product that has sold 20,000 units: "Saiai jogging
pants"
7,990 yen (including tax)

UV care and cooling function
Multi-function knitwear
5,990 yen (including tax)

steppi
9,990 yen (including tax)

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

12

Slide 12 is about Onward Kashiyama’s new brand, UNFILO, that was launched last fall. It has beendeveloping well, with the jogging pants featured on the left becoming a hit.

TOPICS
The flagship store embodying the brand philosophy,
Chalcott Daikanyama, opened on March 12, 2022
Over 30,000 customers visited by the end of May, and there was a 7% increasein net sales compared to the previous main store in Shibuya over the same number of days

■Strengthen development of Chacott Balance and Chacott Cosmetics, exploring the wellness field while maintaining
its ballet business■Operate cafes and restaurants to communicate brand philosophy to all aspects of customers’ daily lives■Provide experiences that appeal to all five senses in a way that only physical stores can offer, in a building that is itself a work of art© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

13

Slide 13 concerns Chacott Daikanyama, Chacott’s flagship store that opened in March of this year. Initial
results are positive, with the number of customers visiting the store exceeding 30,000 by the end of May.

TOPICS“dōzo - Have fun with gifts.”, a new business of prosperous Yamato
A new business launched on April 25, 2022 that combines an expanding rangeof personal gifts and social gifts that meet rapidly growing needs
with expertise gathered over years in the gifting business Send gifts easily even on the day of an anniversary and even without an address Targeted at millennials and generation Z with an affordable price range (2,000 to 15,000 yen)
 More than 80 unique themes to match the recipient’s personality and interests
 Paper-based formats available for customers who wish to give their gifts in person
 Utilizing expertise gained in the catalog gifting business to ensure a seamless in-house process from orderto delivery▲ A delightful gift for mother’s day
containing herbal tea and otherrelaxing products.

▲ A selection of five sneaker-related
products for the sneaker enthusiast.

▲ Stylish home appliances and decor
for newlyweds or given as
housewarming gifts.

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

14

Slide 14 looks at Yamato’s new business, “dōzo – Have fun with gifts”, that was launched in April. Yamato
has been performing well and is aiming for further expansion.
Now I would like to return to the details of the company’s financial situation.
Please turn to slide 16.

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

15

Financial Situation■ Consolidated Statements of Cash Flows■ Consolidated Balance Sheet(Million yen)(Billion yen)
Q1 FY02/23

End-FY02/22

Change1 Current Assets

66.6

60.5

6.1

2

Cash and Deposits

22.0

15.2

6.8

3

Accounts Receivable-trade

14.2

14.2

0.0

4

Inventory

25.7

26.8

-1.1

5 Non-current Assets

95.3

97.2

-1.9

6

Property, Plant and Equipment

55.5

58.0

-2.5

7

Intangible Assets

8.7

9.3

-0.6

8

Investments and Other Assets

30.9

29.8

1.1

9 Total Assets

161.9

157.7

4.2

10 Liabilities

81.3

80.4

0.9

11

Accounts Payable-trade

16.9

18.2

-1.3

12

Borrowings

13 Net Assets

Q1 FY02/23

Q1 FY02/22

Change14 Cash flows from operating activities

1,188

2,188

-1,000

15 Cash flows from investing activities

5,123-1,662+6,785294-3,707+4,001

22,001

18,590+3,411

16 Cash flows from financing activities
17 Cash and cash equivalents■ Capital Expenditures(Million yen)
Q1 FY02/23

Q1 FY02/22

Q1 FY02/21

38.1

35.1

3.0

18 Capex

1,355

1,311

1,546

80.6

77.2

3.4

19 Depreciation and Appreciation

1,167

1,207

1,406

■Metrics
Q1 FY02/23

End-FY02/22

End-FY02/21

End-FY02/20

20 Shareholders’ Equity Ratio

43.4%

42.4%

28.9%

38.3%

21 Current Ratio

115.6%

108.5%

80.8%

98.2%

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

16

Here we have the consolidated balance sheet. In row 9, we can see that total assets were ¥161.9 billion at the end of the first quarter,
an increase of ¥4.2 billion from the end of the previous fiscal year.
Cash and deposits, shown in row 2, increased by ¥6.8 billion to ¥22.0 billion due to operating cash flow income and investment cash
flow income from the sale of the Guam business and others.
Inventory, shown in row 4, decreased by ¥1.1 billion to ¥25.7 billion due to the discontinuation of Kashiyama stores and curbing
purchases.
As a result, current assets, shown in row 1, increased by ¥6.1 billion to ¥66.6 billion.
Property, plant and equipment, shown in row 6, decreased by ¥2.5 billion to ¥55.5 billion due to the deconsolidation of the Guambusiness, depreciation, and recording of impairment losses.
As a result, non‐current assets, shown in row 5, decreased by ¥1.9 billion to ¥95.3 billion.
Liabilities, shown in row 10, increased ¥900 million to ¥81.3 billion.
Accounts payable, shown in row 11, decreased by ¥1.3 billion to ¥16.9 billion due to curbing purchasing at Onward Kashiyama.
Borrowings, shown in row 12, increased by ¥3.0 billion to ¥38.1 billion due to second quarter demands at Group companies forbonuses and tax payments, and the impact of foreign exchange rates.
Net assets, shown in row 13, increased by ¥3.4 billion from the end of the previous fiscal year to ¥80.6 billion.
As a result, shareholders’ equity ratio, shown in row 20, was 43.4%, up 1 percentage point from 42.4% at the end of the previous fiscal
year, maintaining the adequate level.
The current ratio, shown in row 21, was also maintained at over 100%, the standard for safety.
Next, we’ll look at the consolidated statements of cash flows.
If we return to cash flows from operating activities, shown in row 14, we can see this was ¥1.188 billiondue to profit before income
taxes, improvement of inventory efficiency, and tax payments.
Cash flows from investing activities, shown in row 15, was ¥5.123 billion. This represents a substantial increase and was due to the saleof the Guam hotel business.
Cash flow from financing activities, shown in row 16, was ¥294 million due to the increase in borrowings, despite the payment ofdividends.
Capital expenditures, shown in row 18, was ¥1.355 billion, mainly due to the acquisition of the North American J. Press New Havenbuilding and the Chacott Daikanyama renovations.
Depreciation, shown in row 19, was ¥1.167 billion.
This concludes my discussion of our financial position as of the end of the first quarter of the fiscal year ending February 28, 2023.
Finally, let’s turn to slide 18, where we can see the sales by channel.

DATA BOOK

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

17

DATA BOOK: Q1 Results
Sales by Channel
Total consolidated e-commerce sales (incl. overseas sales) were 11.5 billion yen (up 4% YoY).
The e-commerce ratio was 28.6%. The directly managed e-commerce ratio was 86.4%.
(Million yen)
Department
StoresPhysical Stores
Total

Directly Managed
E-Commerce

Other E-Commerce
Platforms

E-Commerce
Total

Total Sales

10,923

8,352

19,275

5,980

880

6,860

26,135% of sales

41.8%

32.0%

73.8%

22.9%

3.4%

26.2%

100.0%YoY

1 Onward Kashiyama
2

Shopping Centers
and Other3

E-Commerce
Ratio

26.2%

Directly Managed
E-Commerce Ratio

87.2%

121.7%

120.7%

121.3%

96.9%

137.5%

100.7%

115.1%

-3.8%

-3.4%

4

Eight Domestic Subsidiaries
Using E-Commerce*

2,566

5,469

8,035

3,457

603

4,060

12,095

33.6%

85.1%

5

Total of Domestic Group
Companies Using E-Commerce

28.6%

86.4%

-2.0%

-1.9%

6
7

13,48913,821

27,310

9,437

1,483

10,92038,230% of sales

35.3%

36.2%

71.4%

24.7%

3.9%

28.6%

100.0%

YoY

119.2%

114.5%

116.8%

104.0%

123.5%

106.2%

113.6%

Note: Domestic subsidiaries using e-commerce (Island, Tiaclasse, Onward Personal Style, Chacott, Creative Yoko, Yamato, Intimates, KOKOBUY)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

18

As shown in the figures highlighted in orange, the e‐commerce ratio for domestic companies using e‐commerce was 28.6% and the directly managed e‐commerce ratio was 86.4%.
A Data Book section is provided for your reference from slide 19.
This concludes my presentation of our results for the first quarter.
Thank you very much.

DATA BOOK: Q1 Results
SG&A Expenses(Million yen)

Q1 FY02/23

Q1 FY02/22

ChangeYoY

1 Personnel

8,448

8,905

-457

94.9%

2 Rent

6,474

5,987

+487

108.1%

3 Transportation

1,561

1,602

-41

97.4%

4 Promotion and Advertising

927

1,501

-574

61.8%

5 Depreciation

982

902

+80

108.9%

4,321

3,735

+586

115.7%
100.4%

6 Other
7

Total SG&A expenses

22,713

22,632+81

8

Extraordinary loss adjustment

-

779

-779

-

9

(Reference) Effective SG&A
expenses

22,713

23,411

-698

97.0%

Non-Operating Profit/Loss
Q1 FY02/23

・ Increase in percentage rent due to increased sales

・ Increase due to investment in stores
・ Increase in event-related expenses due to market recovery/Increase incredit card fees and sales commissions due to increased sales
Fixed costs of 779 million yen due to COVID-19-related store closures
were transferred from SG&A expenses to extraordinary losses

Extraordinary Profit/Loss

Q1 FY02/22

ChangeQ1 FY02/23

YoY
Gain on sales of non-current

6

6

±0

100.0%

18 assets

11 Foreign exchange gains

860

515

+345

167.0%

19

12 Subsidy income

84

282

-198

29.8%

13 Interest expenses

10 Interest income

-52

-107

+55

48.6%

14 for using equity method

-15

-25

+10

60.0%

Loss on disposal of sales floor
15
fixtures, etc.

-34

-18

-16

16 Other non-operating income/expenses

-216

176

-392

-

17

633

829

-196

76.4%

Share of loss of entities accounted

Non-operating profit/loss

188.9%Q1 FY02/22(Million yen)

Change

YoY

-

4,818

-4,818Gain on sales of investment
securities

-

63

-63

-

20

Gain on sales of shares ofsubsidiaries and associates

1,317

2,944

-1,62744.7%

21

Extraordinary loss due to closing
and other

-

-779

+779

-

22

Loss on sales of shares ofsubsidiaries and associates--2,027+2,027-23

Loss on liquidation of subsidiaries
and associates-1,968+1,968295.5%

24 Impairment loss

-458

-155

-303

25 Other

-24

-1

+25

-

883

2,895

-2,01230.5%

26

Extraordinary profit/loss© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

19

DATA BOOK: Q1 Results and 1H Forecast(Million yen)

Onward Kashiyama + HD

Q1 Results
FY02/231
2
3
4

FY02/22

1H Forecast（announced on 2022.4.7）

ChangeYoY

FY02/23

FY02/22

ChangeYoY

Net Sales

26,13522,704+3,431

115.1%

41,30041,392-92

99.8%

Gross Profit

15,815

13,244+2,571

119.4%

23,80022,855+945

104.1%

57.6%

55.2%

+2.4%

107.8%

25,75526,093

62.4%

63.0%

-0.6%

-1,955-3,238+1,283---(% of Sales)

60.5%

58.3%

+2.2%

SG&A Expenses

14,063

13,047+1,016(% of Sales)

53.8%

57.5%

-3.7%

Operating Profit

1,752

197

+1,555(% of Sales)

6.7%

0.9%

+5.8%

889.3%

-338

98.7%
-

Domestic Subtotal(Excl. Onward Kashiyama + HD)

5
6
7

8

Net Sales

17,116

17,202-86

99.5%

32,88932,351+538

101.7%

Gross Profit

8,346

8,439

-93

98.9%

16,371

16,188+183

101.1%

49.8%

50.0%

-0.2%

97.8%

14,77415,090

-316

44.9%

46.6%

-1.7%

1,597

1,098

+499

4.9%

3.4%

+1.5%

(% of Sales)

48.8%

49.1%

-0.3%

SG&A Expenses

7,217

7,379

-162

(% of Sales)

42.2%

42.9%

-0.7%

Operating Profit

1,129

1,060

+69

(% of Sales)

6.6%

6.2%

+0.4%

106.5%

97.9%
145.4%

Note: Calculated using simple sums for the domestic group companies excluding Onward Kashiyama and HD.

Overseas Subtotal
9
10
11
12

Net Sales

3,732

8,643

-4,911

43.2%

7,202

11,480-4,27862.7%

Gross Profit

1,437

3,352

-1,915

42.9%

3,138

4,384

-1,246

71.6%(% of Sales)

38.5%

38.8%

-0.3%

43.6%

38.2%

+5.4%

SG&A Expenses

2,050

3,339

-1,289(% of Sales)

54.9%

38.6%

+16.3%

Operating Profit

-613

13

-626

-

0.2%

-

(% of Sales)

61.4%
-

4,169

5,052

-883

57.9%

44.0%

+13.9%-1,031

-668

-363

-

-

-

82.5%
-

Note: Calculated using simple sums.

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

20

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

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