FY2022(March 2022 – February 2023)

Results Presentation Material

April 6, 2023
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Today. I would like to explain the consolidated financial results for fiscal 2022, ended February 28, 2023,
based on the PowerPoint material .
First, please look at slide 4 of the material.

Onward Group’s Raison d’Être

Copyright © ONWARD HOLDINGS CO., LTD.

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

11

Contents

01

Consol idated Fi nanci al Resul ts and

Copyright © ONWARD HOLDINGS CO., LTD.

Performance Forecasts Hi ghlights© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

22

02
03
04
05
06
07
08

P. 3

FY2022 Consolidated Financial Results

P. 7

FY2023 Consolidated Performance Forecasts

P.12

TopicsP.18

Sustainable Management

P.25

Work Style Design Project

P.27

Financial Situation

P.29

Data Book

P.33

01
Consolidated Financial Results and

Copyright © ONWARD HOLDINGS CO., LTD.

Performance Forecasts Highlights© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

33

FY2022 Consolidated Financial Results Highlights

Net Sales

176.1

billion yen+7.6 billion yen YoY

Operating Profit

Recurring Profit

Net Profit

5 . 2 billion yen

5 . 3 billion yen

3 . 1 billion yen+6.3 billion yen YoY+4.8 billion yen YoY-5.5 billion yen YoY

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Consolidated net sales for FY2022 increased 7.6 billion yen from the previous
fiscal year, due to a clear recovery of our key brands business centered on
Onward Kashiyama, and strong sales at stores that implemented the “Click &Try” OMO service.
◼ Along with the global business reforms, thorough inventory control and discountsales reduction measures, etc. contributed to improving gross profit margin(from 52.0% to 54.9%) and the SG&A expenses ratio steadily (52.7% to 52.0%).
◼ As a result, profits at all levels including operating profit returned to profitability.
Net profit decreased owing to the specific factor of recording a massive gainfrom the sale of real estate in FY2021.

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

4

These are the highlights of the consolidated financial results for fiscal 2022. Net sales increased ¥7.6 billion
or 4.5% year-on-year to ¥176.1 billion. Operating profit improved by ¥6.3 billion year-on-year, returning to
the black at ¥5.2 billion. Recurring profit increased by ¥4.8 billion year-on-year to ¥5.3 billion, and net
profit was ¥3.1 billion. Net profit decreased by ¥5.5 billion year-on-year due to the special factor of a gainon sale of real estate that was recorded in the previous fiscal year.

As for net sales in fiscal 2022, our mainstay brand business, particularly Onward Kashiyama, recovered, andthis is the biggest factor in the sales increase. In addition, the newly developed “Click & Try” OMO service
has been making steady progress, with the number of users reaching a record high in March, and this has
been a major factor in the sales increase.
In terms of profits, gross profit margin rose by 2.9 pp from 52.0% in the previous fiscal year to 54.9%. This
was thanks to the results of the global business reforms initiated in the second half of fiscal 2019, as well
as strict inventory control and curbs on discount sales. The SG&A expense ratio also declined steadily from
52.7% in the previous fiscal year to 52.0%, mainly due to improved sales efficiency. As a result, we wereable to achieve profitability at all profit levels, including operating profit. I mentioned net profit earlier.

FY2023 Performance Forecasts Highlights
Net Sales

Operating Profit

Recurring Profit

Net Profit

185.0 billion yen

7.0 billion yen

6.3 billion yen

4.0 billion yen+8.9 billion yen YoY+1.8 billion yen YoY+1.0 billion yen YoY+0.9 billion yen YoY

Copyright © ONWARD HOLDINGS CO., LTD.

◼ For FY2023, we expect to achieve consolidated net sales of 185.0 billion yen, up 8.9
billion yen year on year due to favorable outlook for domestic apparel, domestic lifestyleand overseas businesses.
◼ Gross profit margin is forecast to further improve from 54.9% to 55.4% and the SG&A
ratio is expected to decline from 52.0% to 51.6%, thanks to discount sales reduction
measures, as well as increased net sales. Thus, operating profit is forecast to reach 7.0
billion yen, up 1.8 billion yen year on year, and net profit is estimated to increase to 4.0
billion yen, up 0.9 billion yen year on year.
◼ As a result, operating profit for FY2023 is expected to be the highest in the last 10 years
including FY2023 since FY2014.

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

5

Next, the highlights of our forecasts for fiscal 2023 are shown. Net sales are forecast to be ¥185 billion, an
increase of 5.1% or ¥8.9 billion year-on-year. We expect operating profit to come in at ¥7 billion, an
increase of 34.3% or about ¥1.8 billion year-on-year. Recurring profit is forecast to be ¥6.3 billion, an
increase of 18.4% or ¥1 billion year-on-year. We expect net profit of ¥4 billion, an increase of 30.7% or ¥0.9
billion year-on-year, and forecast an increase in both sales and profits.

We expect net sales to increase in the domestic apparel business, the domestic lifestyle business andoverseas businesses, all of which we think will remain strong or improve. In addition, we expect the grossprofit margin to climb, and the SG&A expense ratio to decline due to the improvement of the efficiency ofstore operations, and also expect increased profits at each profit level.

Operating Profit Trend （Last 10 Fiscal Years）◼ Operating profit for FY2023 is expected to be the highest in the last 10 years including
FY2023 since FY2014.

（Billion yen）

7.0
5.73

45億円
3.78

5.17
5.17

5.21
5.21
4.46

4.20

Copyright © ONWARD HOLDINGS CO., LTD.

- 1.08- 3.06- 20.17
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023(Forecast)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
6

As a result, as described on slide 6, operating profit for fiscal 2023 is expected to be the highest in the last
10 fiscal years since fiscal 2014. Operating profit was ¥5.73 billion in fiscal 2014 and then exceeded ¥5billion once in fiscal 2017, but the ¥5.21 billion in fiscal 2022 is higher than in fiscal 2017.
As you are aware, our Group began business reforms in fiscal 2019, and was hit by the COVID-19 pandemic
in fiscal 2020. As a result, we have caused a lot of anxiety about the fact that we have had threeconsecutive fiscal years of operating losses since fiscal 2019, but we believe that we have taken the firststep toward stabilization and normalization in fiscal 2022. We hope that fiscal 2023 will be a fiscal year inwhich we can ensure this trend. These are the highlights.
I would like to explain the consolidated financial results for fiscal 2022 in more detail. Please look at slide 8.

02

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022 Consolidated Financial Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

77

FY2022 Consolidated Financial Results◼ Net sales increased to 176.1 billion yen, up 7.6 billion yen from the previous fiscal year.
◼ Operating profit was a positive 5.2 billion yen, up 6.3 billion yen from the previous fiscal year.
◼ EBITDA.reached10.4 billion yen, up 6.5 billion yen from the previous fiscal year.

FY2021

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

FY2022YoY

Full-Year% of Sales

Full-Year% of Sales

Change% of Change

Change in% of Sales

1

Net Sales

168,453-

176,072-＋7,619

+4.5%

-

2

Gross Profit

87,61252.0%

96,75154.9%＋9,139+10.4%

+2.9%

3

SG&A
Expenses

88,691

52.7%

91,53752.0%＋2,846

+3.2%

-0.7%

4

Operating
Profit-1,079

-

5,214

3.0%

＋6,293

5

Recurring
Profit

507

0.3%

5,319

3.0%

＋4,812+949.1%+2.7%

6

Net Profit

8,566

5.1%

3,061

1.7%

-5,505-64.3％-3.4%

7

EBITDA*

3,915

2.3％

10,373

5.9%+6,458+164.9%+3.6%*Note: EBITDA = operating profit + depreciation and amortization.

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

8First, as I have already mentioned, net sales increased by ¥7.6 billion year-on-year to ¥176.1 billion. Grossprofit grew 10.4% or ¥9.1 billion year-on-year to ¥96.8 billion, and gross profit margin was 54.9%. SG&A
expenses were ¥91.5 billion, and we limited their growth to ¥2.8 billion or 3.2% year-on-year, and the
SG&A expense ratio was 52.0%. Operating profit improved by ¥6.3 billion year-on-year to ¥5.2 billion, andoperating profit margin recovered to 3.0%, although still at a low level. Recurring profit increased by ¥4.8
billion year-on-year to ¥5.3 billion, and net profit fell ¥5.5 billion year-on-year to ¥3.1 billion. EBITDA
increased by ¥6.5 billion from the previous fiscal year to ¥10.4 billion, crossing the ¥10 billion mark. In thisway, we believe that a fairly stable foundation is forming.

FY2022 Net Sales & Operating Profit by Segment◼ The domestic apparel business posted higher sales, and operating profit entered the black.
The lifestyle business recorded growth in net sales and operating profit.
◼ For overseas businesses, though net sales decreased due to the withdrawal from the
Italian business, operating profit/loss improved.
YoY

FY2021

FY2022
Change(Million yen)

1

2

128,672+8,156

Operating Profit-1,254

5,014+6,268Net Sales

37,90538,779

+874

+2.3%

2,598

2,727

+129

+5.0%

158,421

167,451+9,030

+5.7%

1,344

7,741

+6,397+476.0%17,83815,254-2,584-14.5%

-679

-876

-197

1,750

1,996

+246

-814

-214

+600

Net Sales

19,58817,250-2,338Operating Profit-1,493-1,090+403

168,453

176,072+7,619-1,0795,214+6,293

ApparelLifestyleOperating Profit
Net Sales

3

Domestic Total
Operating Profit
Net Sales

4

ApparelOperating Profit
Net Sales

5

Lifestyle

Copyright © ONWARD HOLDINGS CO., LTD.

Operating Profit

6

Overseas Total
Net Sales

7% of Change

120,516

Net Sales

Consolidated Total
Operating Profit+6.8%+14.1%-11.9%+4.5%

Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 7 other companies; 11 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato, and 7 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 3 other companies; 4 companies in total)
The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

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

9

Slide 9 shows net sales and operating profit by segment.
In domestic businesses, the mainstay apparel business posted a significant sales increase. Net sales
increased by ¥8.2 billion year-on-year to ¥128.7 billion. Operating profit increased by ¥6.3 billion year-onyear, returning to the black at ¥5.0 billion. The recovery of the core apparel business has contributed
significantly to the recovery of consolidated performance. In addition, the lifestyle business, which had
been performing well even during the COVID-19 pandemic, saw net sales increase by ¥0.87 billion year-onyear and operating profit grow ¥0.13 billion year-on-year, achieving growth in both net sales and operating
profit.
On the other hand, total net sales of overseas businesses decreased by ¥2.3 billion year-on-year. This wasdue to the withdrawal from the Italian business and the fact that net sales from the Italian business had
been recorded in the first quarter of the previous fiscal year. Operating profit/loss improved by ¥0.4 billion
from the previous fiscal year, although an operating loss of about ¥1.1 billion remained. As for Europe, due
to the situation in Ukraine, and as for Asia, due to the impact of China’s zero COVID measures and otherfactors, overseas businesses in fiscal 2022 remained in a difficult operating environment and posted a loss.
In fiscal 2023 and beyond, we consider returning overseas businesses to profitability to be an importantmanagement issue. Please look at slide 10.

FY2022 Net Sales & Operating Profit by Company◼ Net sales increased by 7.6 billion yen YoY, contributed by a 9.7 billion yen increase at Onward
Kashiyama and other factors.
◼ Operating profit/loss returned to the black due to factors such as 6.4 billion yen in operating profit/loss
improvement at Onward Kashiyama.
YoY

FY2021

FY2022
Change(Million yen)

1

Onward Trading

3

Isla nd4

Chacott

Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales

5

Creative Yoko

6

YamatoOperating Profit
Net Sales
Operating Profit

Domestic Subtotal

Net Sales(Excl. Onward Kashiyama + HD)

Operating Profit
Net Sales

8

Europe9America

10

Asia

11

Oversea s Subtotal

12

Operating Profit
Net Sales

2

7

Copyright © ONWARD HOLDINGS CO., LTD.

Onward Kashiyama + HD

Net Sales

Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales

Consolidated Total
Operating Profit

91,395-1,857
14,760
1,788
5,753
-124
8,311
332
5,194
319
20,326
1,280
67,0263,201
13,182-156
1,202-1,1555,204-182
19,588-1,493
168,453-1,079101,109
4,524
13,650
1,021
6,285
80
8,849
342
5,801
419
20,6291,489
66,342
3,217
9,960
-136
1,636
-576
5,654
-378
17,250-1,090176,072
5,214+9,714+6,381-1,110
-767
+532
+204
+538
+10
+607
+100
+303
+209
-684
+16
-3,222
+20
+434
+579
+450
-196
-2,338+403+7,619+6,293% of Change+10.6%-7.5%-42.9%
+9.2%
+6.5%
+3.0%
+11.7%+31.3%+1.5%+16.3%-1.0%+0.5%-24.4%+36.1%+8.6%-11.9%+4.5%© Copyright 2007-2015
ONWARDHOLDINGS
Note: The segment
breakdown
is calculatedCO.,LTD.
using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

10

By company, a ¥9.7 billion increase year-on-year in net sales and a ¥6.4 billion increase year-on-year inoperating profit at Onward Kashiyama were the driving force behind the improvement in consolidated
performance. The total operating profit of domestic group companies increased slightly and the total
operating profit of overseas businesses improved by ¥0.4 billion year-on-year. However, most of theincrease in the consolidated operating profit was supported by the recovery of Onward Kashiyama’s brandbusiness and the strong performance of OMO measures.
Please look at net sales by channel on slide 11.

FY2022 Net Sales by Channel◼ Net sales at physical stores total (department stores, shopping centers and other) increased by
8.4% YoY.
◼ E-commerce sales increased by 9.5% YoY. The e-commerce ratio and the directly managed ecommerce ratio remained at a high level at 30% and 85.9%, respectively.

(Million yen)

Copyright © ONWARD HOLDINGS CO., LTD.

1

Onward Kashiyama

Directly
Managed ECommerce
Ratio

Department
Stores

Shopping
Centers andOtherPhysicalStores Total

Directly
Managed ECommerce

Other ECommerce
Platforms

E-Commerce
Total

Total Sales

E-Commerce
Ratio

39,83232,404

72,23625,175

3,698

28,873

101,109

28.6%

87.2%

2

% of sales

39.4%

32.0%

71.4%

24.9%

3.7%

28.6%

100.0%

3

YoY+17.9%+6.0%+12.3%+4.5%+24.9%+6.8%+10.6%

-1.0%

-1.9%

4

Eight Domestic
Subsidiaries Using ECommerce*

9,797

22,60432,401

13,3202,605

15,92548,326

33.0%

83.6%

5

Total Domestic
Subsidiaries Using ECommerce

46,62955,008104,637

38,4956,303

44,798

149,435

30.0%

85.9%

6

% of sales

33.2%

36.8%

70.0%

25.8%

4.2%

30.0%

100.0%

7

YoY+16.4%

+2.1%

+8.4%

+8.8%

+14.1%

+9.5%

+8.7%

+0.2%

-0.6%

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

11

The yellow-framed areas are important, and net sales at “Physical stores total,” the sum of “Department
stores” and “Shopping centers and other,” increased by 8.4% year-on-year, offsetting the impact of storesthat closed due to the reforms. For like-for-like stores, a wide range of brands achieved double-digit sales
increases.
E-commerce sales also increased by 9.5% year-on-year, and we believe that the balanced sales increase byboth physical and online channels was a major achievement. At one point during the COVID-19 pandemic,
e-commerce sales increased significantly, but that was inversely related to the decline in physical stores,
and in a sense, it was an unbalanced situation for a few years. As a result, the e-commerce ratio rose to30%, but we were able to maintain the e-commerce ratio at a high level of 30% while expanding bothchannels in fiscal 2022. Among others, net sales through “ONWARD CROSSET,” the directly managed ecommerce website, account for 85.9% of total net sales, which is the top level in the industry, and it
formed the basis for new OMO services such as “Click & Try.” In this regard, we believe that we were able
to lay a solid foundation in fiscal 2022. These are the financial results for fiscal 2022.
Slide 12 and the subsequent slides show forecasts of consolidated financial performance for fiscal 2023.

03

Copyright © ONWARD HOLDINGS CO., LTD.

FY2023 Consolidated Performance Forecast© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

12
12

FY2023 Consolidated Performance Forecasts◼ Gross profit margin is expected to improve by 0.5 pp from FY2022 to 55.4%.
◼ SG&A expense ratio is forecast to lower 0.4 pp from FY2022 to 51.6%.
◼ EBITDA is estimated to increase 1.7 billion yen from FY2022 to 12.1 billion yen.
FY2022

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

FY2023

YoY

Full-Year% of Sales

Full-Year% of Sales

Change% of Change

Change in% of Sales

1

Net Sales

176,072-

185,000-＋8,928

+5.1%

-

2

Gross Profit

96,751

54.9%

102,400

55.4%＋5,649

+5.8%

+0.5%

3

SG&A
Expenses

91,53752.0%

95,40051.6%＋3,863

+4.2%

-0.4%

4

Operating
Profit

5,214

3.0%

7,000

3.8%

＋1,786+34.3%+0.8%

5

Recurring
Profit

5,319

3.0%

6,300

3.4%

＋981

+18.4%+0.4%

6

Net Profit

3,061

1.7%

4,000

2.2%

+939

+30.7％+0.5%

7

EBITDA*

10,373

5.9%

12,1006.5%+1,727+16.6%+0.6%*Note: EBITDA = operating profit + depreciation and amortization.

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

13

Net sales are expected to be ¥185 billion, an increase of 5.1% or ¥8.9 billion year-on-year. Gross profit isexpected to be ¥102.4 billion, an increase of 5.8% or ¥5.6 billion year-on-year, and gross profit margin is
expected to rise by 0.5 pp year-on-year to 55.4%. SG&A expenses are forecast to be ¥95.4 billion, and the
SG&A expense ratio is forecast to improve by 0.4 pp year-on-year to 51.6%. As a result, we expect
operating profit to be ¥7 billion, operating profit margin to record 3.8%, recurring profit to be ¥6.3 billion,
recurring profit margin to come in at 3.4%, net profit to be ¥4 billion, net profit margin to be 2.2%, EBITDA
to post ¥12.1 billion and EBITDA ratio to be 6.5%. For fiscal 2023, we expect increased sales and profits at
all profit levels.
Slide 14 shows performance by segment.

FY2023 Forecast of Net Sales and Operating Profit by Segment◼ For domestic business, the apparel business is expected to increase net sales by 4.9% and operating
profit by 36.1%. Lifestyle business is forecast to expand net sales by 7.0% and operating profit by 8.3%.
◼ Overseas business is estimated to improve net sales by 8.0% and operating profit/loss by 0.7 billion yen.

YoY
FY2022

FY2023
Change(Million yen)
Net Sales

1

ApparelOperating Profit
Net Sales

2

Net Sales

Net Sales

Copyright © ONWARD HOLDINGS CO., LTD.

+4.9%

5,014

6,824

+1,810+36.1%

38,77941,501+2,722

+7.0%

2,727

2,952

+225

+8.3%

167,451

176,468+9,017

+5.4%

7,741

9,776

+2,035+26.3%

17,25018,631+1,381+8.0%

Overseas Total
Operating Profit
Net Sales

5+6,295

Domestic Total
Operating Profit

4

134,967

LifestyleOperating Profit

3% of Change

128,672-1,090-382+708

176,072

185,000+8,928

+5.1%

5,214

7,000

+1,786+34.3%

Consolidated Total
Operating Profit

Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 7 other companies; 11 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato, and 6 other companies; 9 companies in total)
Overseas (8 companies in the JOSEPH Group, J.PRESS, Onward Fashion Trading, and 12 other companies; 22 companies in total)
Note: The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

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

14

In domestic businesses, both the apparel and lifestyle business segments are expected to record increased
sales and profits. In the apparel business, net sales and operating profit are expected to increase by 4.9%
and 36.1% year-on-year, respectively. In the lifestyle business, net sales and operating profit are expected
to increase by 7.0% and 8.3% year-on-year, respectively.
Regarding the pending overseas businesses, we forecast net sales to be ¥18.6 billion, an increase of ¥1.4
billion or 8.0% year-on-year, and operating loss of ¥0.38 billion, an improvement of about ¥0.7 billion yearon-year. Although overseas businesses as a whole will still be in the red, we expect the European businessto return to profitability, and we want to use this as a springboard to return overseas businesses toprofitability in fiscal 2024 and beyond.
Please look at slide 15.

FY2023 Forecast of Net Sales and Operating Profit by Company◼ Although overseas businesses as a whole will remain in the red, the European business is
expected to return to the black as a result of the JOSEPH Group's turnaround.

YoY

FY2022(Million yen)

1

2

Onward Trading

3

Isla nd4

Chacott

5

Creative Yoko

6

Yamato7
Copyright © ONWARD HOLDINGS CO., LTD.

Onward Kashiyama + HD

ChangeNet Sales

Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit

Domestic Subtotal

Net Sales(Excl. Onward Kashiyama + HD)

Operating Profit

8

Europe9America

10

Asia

11

Oversea s Subtotal

12

Consolidated Total

FY2023

Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit

101,109
4,524
13,650
1,021
6,285
80
8,849
342
5,801
419
20,6291,489
66,342
3,217
9,960
-136
1,636
-576
5,654
-378
17,250-1,090176,072
5,214

105,179
4,961
14,676
1,137
6,565
207
9,410
435
6,028
476
21,721
1,650
71,2894,815
10,476
97
1,459
-237
6,696
-242
18,631-382
185,000
7,000% of Change+4,070+437+1,026
+116
+280
+127
+561
+93
+227
+57
+1,092+161+4,947+1,598
+516
+233
-177
+339
+1,042+136+1,381+708+8,928+1,786

+4.0%
+9.7%
+7.5%
+11.4%+4.5%+158.8%+6.3%+27.2%+3.9%+13.6%+5.3%+10.8%+7.5%+49.7%+5.2%-10.8%+18.4%+8.0%+5.1%+34.3%© Copyright 2007-2015
HOLDINGS
CO.,LTD.
Note: The ONWARD
segment breakdown
is calculatedusing simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

15

These are forecasts of net sales and operating profit by company.
As I just mentioned, we expect the European business, shown with yellow shading, to record net sales of¥10.5 billion and return to profitability with operating profit of about ¥0.1 billion. In fiscal 2019, we
embarked on global business reforms due to a significant operating loss in the European business, but after
the COVID-19 pandemic, which brought considerable difficulties, we are eager to return the European
business to profitability in fiscal 2023.
Other domestic companies are generally forecast to record increased sales and profits, and we want tomake sure that they do so.
Next, I would like to explain how we return profits to our shareholders and invest in human resources
based on the business plan described above.
Slide 16 shows shareholder returns.

Shareholder Returns◼ In line with the Company’s policy of strengthening shareholder returns, the annual
dividend per share is expected to be 14 yen, an increase of 2 yen from theprevious fiscal year.

▍Dividends Policy
The Company views the appropriate distribution of profits to shareholders as a key
management issue, and sets a dividend payout ratio target of 35%, ensuring stable
and appropriate distribution of profits in conjunction with its performance.

▍Dividends

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022

FY2023●● (forecast)
億円

Dividends per Share (yen)12

14

Total Dividends (mil. yen)

1,628

1,900

Net Profit (mil. yen)

3,061

4,000

Payout Ratio

53.2%

47.5%

●●
億円

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

16

Our company’s dividend policy originally set a target dividend payout ratio of 35% or more, and positioned
stable and performance-linked distribution of profits as one of the most important management measures.
In line with this, we intend to pay a dividend of ¥12 per share for fiscal 2022 as originally planned. With a
total dividend of just over ¥1.6 billion and net profit of just over ¥3 billion, the payout ratio is 53.2%.
In fiscal 2023, we plan to pay a year-end dividend of ¥14, an increase of ¥2, to be paid in May of next year
on the premise of steadily increasing net profit. With a total dividend of ¥1.9 billion and a payout ratio of
47.5%, we intend to distribute profits appropriately in accordance with our dividend policy of 35% or more.

Investments in Personnel
In light of the ever-increasing importance of human resources as a management resource, in
FY02/23, we will improve salaries and establish a new shopmeister system .

▍Salary Improvements
Salary improvements for FY2023 are planned to be a 6.7% increase from theprevious year.

Copyright © ONWARD HOLDINGS CO., LTD.

▍Establishment of the Shopmeister System
A new system was established to allow highly skilled sales personnel who havereached the retirement age of 60 to continue working as ‘shopmeisters’ withappropriate compensation over the long term.

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

17

In terms of investment in human resources, we will first improve overall salaries in light of the increasing
importance of human resources as a management resource these days. We plan to increase the rate ofsalary improvement in fiscal 2023 by 6.7% from the previous fiscal year. While taking into account ourgenerous support particularly for young personnel, we will make appropriate allocations and return profits
to all types and all generations of employees.

Particularly in the sales field, behind the steady growth of Click & Try service which I mentioned earlier are
the system and other mechanisms, but the ability of the sales representatives at stores to use thesemechanisms has become a very important factor. Accordingly, we want to invest in ensuring that we havehighly skilled sales representatives to build a solid customer base and trust with customers. Specifically, wewant to certify highly skilled sales representatives who have reached the retirement age of 60 as“Shopmeisters” (excellent staff) internally, and establish a new system which allows them to continue
working beyond the retirement age with appropriate treatment for a long period of time, making sure that
this system will be in place from this spring.
These are my explanation of the financial results, shareholder returns and human resources investment.
Next, the topics are shown on slide 18 and the subsequent slides.

04
Topics
1. OMO Strategy
2. Apparel Business

Copyright © ONWARD HOLDINGS CO., LTD.

3. Lifestyle Business© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

18
18

.

１．OMO Strategy◼ Number of Onward Kashiyama stores implementing its “Click & Try” OMO service increased to 340.

◼ Number of items reserved for “Click & Try” expanded from 55,000 in 1H to 116,000 in 2H, reaching 171,000 in FY2022.
◼ Net sales level of existing stores offering the OMO service recovered to the FY2019 level, 19 pp higher than 81% of

stores that don’t offer the service.
▍Trends in number of stores offering Click & Try
Ratio of stores offering
Click & Try

23％
200

▍Net Sales: FY2022 versus FY2019

43％
340
stores100％

storesEnd of February-22

116,000
66,00081％＋19pp

End of February-23

Offered at 40%+ of Onward Kashiyama stores; Further
expansion is planned

Non-Click& 55,000
TrystoresClick &
Try
stores

29,000

Copyright © ONWARD HOLDINGS CO., LTD.

▍Items reserved for Click & Try service

116,000
Click & Try service boosted net sales significantly

55,000First Half of 2022

Second Half of 2022

The use of Click & Try spiked in 2H
Reservations in 2H doubled from the 1H reaching© Copyright 2007-2015
ONWARD
CO.,LTD.
171 thousandon HOLDINGS
a full-year basis

19

Our OMO strategy, which I explain every quarter, has been a major pillar of the sales growth. As described
here, the number of stores offering the Click & Try service has increased to 340 from 200 in the past year,
and the offering rate has risen to 43% from 23%. While spending the next few years in close consultation
with our business partners in the 57% stores not offering the service, we want to ultimately create anenvironment in which the service can be used at all stores.
The number of items reserved has doubled from the first half to the second half of the fiscal year. The
growth rate of net sales at stores offering the service continues to be 19 pp higher than at stores notoffering service, and net sales at stores offering the service have already recovered to the fiscal 2019 level.
Even in fiscal 2023, the number of users in March reached a record high. As both customer recognition andthe proficiency level of our store staff have improved, we expect the number of users of the Click & Try
service to continue to increase steadily. To expand the number of stores offering the service in the future,
we are currently planning a horizontal expansion while constantly negotiating with our business partners,
and we believe that we will make further progress in our OMO strategy to increase sales.
Next, the brand strategy for the apparel business is shown on slide 20 and the subsequent slides.

２．Apparel Business : Key Brands Strategy

Nijyusanku 【Onward Kashiyama】◼ A large increase in sales of Nijyusanku, Onward Kashiyama’s

biggest brand, led the recovery of the brand business.
◼ Expanded product lineup to meet demand of those who started

working at offices or going out resulted in an increase in customer
unit price.
◼ Expanded use of Click & Try increased sales opportunities.
Full-Year Sales
(YoY)

+

23.4%

Jiyuku 【Onward Kashiyama】◼ Along with growth of physical

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Sales increased at

department stores andother real stores.
◼ Customer unit priceincreased, contributed byincreased product types
with sophisticated taste.

Full-Year Sales(YoY)

ICB 【Onward Kashiyama】

+

13.3%

stores, reserve & buy
increased due to the
expansion of EC sites.
◼ Net sales were stable dueto the shift to increasing thetypes of lineups andvariations.
Full-Year Sales
(YoY)

+

14.2%

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

20

Slide 20 shows the key brand strategy.
Onward Kashiyama’s “Nijyusanku,” “Jiyuku” and “ICB” all achieved solid double-digit sales increases in theprevious fiscal year. The ratio of sales of full-priced products is also rising. Most recently, in March 2023,
net sales of key brands were also very strong. We feel that, for brands such as “J.PRESS” and “any SiS” inaddition to key brands, customers for business clothes, suits and formal clothes are increasing coupledwith the easing of COVID-19 restrictions.

２．Apparel Business : D2C Brands Strategy
UNFILO 【Onward Kashiyama】

uncrave 【Onward Kashiyama】◼ Sales increased significantly due to the launch of long-◼ As for “uncrave,” a D2C brand that is mainly sold atselling hit (Saiai jogging pants, Georgette Jersey gilet,etc.) Started men's and unisex line in full scale in thefall and winter of 2022.

the E-commerce market and has expanded its
customer contacts with the use of POPUP andsocial media, sales are strong in top & bottom sets
made from select materials, knitwear, shirts, andblouses.

Copyright © ONWARD HOLDINGS CO., LTD.

◼ “steppi by UNFILO,” environmental-conscious, highfunctional and sustainable shoes made with recycledmaterial to a maximum extent, received 2022 Good
Design Award.

◼ The follower counts largely increased due to the

Full-Year Sales

Full-Year Sales

(YoY)

+

96.3%

referrals spread by influencers via social media.
Wholesale orders are also strong from in FY2022.

(YoY)

+

17.0%

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

21

Slide 21 shows the D2C brand strategy.
The D2C brand is an online-focused one developed over the last few years. In fiscal 2022, net sales of both
“UNFILO” and “uncrave” increased by double digits, while net sales of “UNFILO” nearly doubled. Net sales
grew significantly in March as well, and we believe that these emerging brands will be the pillar of future
sales growth and contribute to the expansion of e-commerce sales in fiscal 2023 and beyond.

２．Apparel Business : Customized Products Strategy

KASHIYAMA【Onward Personal Style 】◼ Net sales of directly managed stores increased 17% fromFY2021. Along with directly managed stores, the operationof FC stores has also been accelerated.
◼ Sales of formal wears released in 2H are strong. The lineup

includes a truly black-dyed fabric sold at a reasonable price.
◼ The KASHIYAMA Kichijoji store will relocate to an area

Copyright © ONWARD HOLDINGS CO., LTD.

where many select shops and cafes are located (April 1,2023). It will be revamped as one of the largest stores inTokyo to present the brand's world view to a wide rangeof customers, including business people and students
who visit the store.

Full-Year Sales
(YoY)

+

14.4%

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

22

Slide 22 shows our made-to-order suit “KASHIYAMA” brand as a customization strategy. Fiscal 2023 marks
the fifth year since we developed this brand. Suit sales did not grow as expected for some time due to the
COVID-19 pandemic, but since around New Year’s Day this year, sales growth has been noticeably
accelerating. In fiscal 2022, net sales increased 14.4% year-on-year, with net sales particularly strong at our
directly-managed stores and our franchise stores are expanding steadily. Most recently, on April 1, thestore in the Kichijoji area was relocated and reopened with an increased floor space approximately threetimes larger. It’s only been a week since the renewed store opened, but net sales have more than doubled
from the plan. We plan to accelerate our store strategy, including relocation and expansion to appropriate
locations.

３．Lifestyle Business
Chacott◼ Sales of mainstay ballet, fitness and “Chacott

COSMETICS” products returned to the FY2019 level.
◼ Sales of “Chacott BALANCE,” a balance wear thatstraightens human body to the core both physically andmentally, rose sharply by 38% from FY2019.
◼ In March 2023, the Company launched a renewed “Photo

Copyright © ONWARD HOLDINGS CO., LTD.

Shooting” service, a photo art service that includes
Chacott ballet costumes for stage and competition, a fullfledged ballet makeup by makeup artists, and photo shootby professional photographers.

Full-Year Sales
(YoY)

+

6.5%

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

23

In the non-apparel lifestyle business, Chacott’s net sales were up 6.5% year-on-year in the full fiscal year
ended February 28, 2023. In addition to cosmetics, we are seeing steady growth in new areas other thanclassic ballet products, such as “BALANCE,” our brand proposal for wellness. We also offer “Photo
Shooting,” a photo art service in which a customer dressed in a stage and competition-specific Chacottballet costume and wearing authentic ballet makeup is photographed by a professional photographer, atour Daikanyama store. This service has been so popular that we renewed it in March of this year. We want
to develop this service into a new business pillar.
Please look at slide 24.

３．Lifestyle Business
Creative Yoko
◼ Net sales of the pet business and the Sirotan business increased 14% and 8% year on year,

respectively, contributed by the measures of opening physical stores.
◼ In January 2023, “Sirotan Friends Park,” a specialty shop of an original character Sirotan, opened at

the Haneda Airport Garden.
◼ In February 2023, “PET PARADISE,” a shop specializing in pet goods, opened at Harajuku Takeshita

Copyright © ONWARD HOLDINGS CO., LTD.

Street.

Full-Year Sales
(YoY)

+

11.7%

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

24

The pet fashion business of Creative Yoko, one of the pillars of the lifestyle business, is being developed
under the “PET PARADISE” brand. We also operate stores specializing in the original character “Sirotan,”“Sirotan Friends Park.” In fiscal 2022, net sales of the pet business and “Sirotan” increased by 14% and 8%
year-on-year, respectively, both showing steady performance.
In addition, Creative Yoko actively promoted measures to open physical stores in fiscal 2022, and has beenbuilding new stores with great precision. Earlier this year, we opened “Sirotan Friends Park” in Haneda
Airport Garden and “PET PARADISE” on Takeshita Street in Harajuku, primarily in anticipation of inbounddemand. This has led to stores where the majority of net sales are for inbound tourists. We will continue toaggressively open new stores, including outlets, and including for inbound tourists, to accelerate ourCreative Yoko business.

05
Copyright © ONWARD HOLDINGS CO., LTD.

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

25
25

Sustainable Management

Onward Holdings / Onward Kashiyama
Launched the “Green Onward” Project to Promote Evolved Sustainable
Management

Overview of “Green Onward” Project• Onward Green Campaign has focused onreusing collected clothing in producing
blankets, work gloves and solid fuels.
• The next step is to launch "Upcycle Action"■ Thoughts on the Green Onward logo

Copyright © ONWARD HOLDINGS CO., LTD.

The initial letter “G” of “Green” is deformed into
a rotating arrow, and when it overlaps with the“O” of “Onward,” the image of “infinite
circulation” is created. It represents theforward-looking attitude and futuristic nature of
the Onward Group’s sustainable management.

that aims to utilize unwanted clothing tocreate new value.
• Onward Kashiyama will start with “Upcycle
Action,” another phase of Onward Green
Campaign, which is evolved in both quality
and quantity.

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

26

Next, regarding sustainable management, as described on slide 26, a project called “Green Onward” hasbeen launched mainly by Onward Holdings and Onward Kashiyama. This is the collective name for thevarious sustainable activities within the Group, and a movement to organically coordinate efforts acrossthe entire Group. In particular, this year we will develop “Upcycle Action” as an evolution of the “Onward
Green Campaign” launched in 2009, a project to collect, recycle and reuse our company brand clothing.

In the past, collected clothing was recycled into work gloves, blankets and solid fuel, but in the future, weare considering creating new value by taking advantage of clothing that is no longer needed. We want toevolve the “Onward Green Campaign” with the help of our in-house creative personnel and by working
with external personnel.

06
Copyright © ONWARD HOLDINGS CO., LTD.

Work Style Design Project© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

27
27

Promotion of Work Style Design◼ Promoting Work Style Design, a project to improve our workstyles, with the aim ofenhancing operational efficiency and productivity by achieving a better work-lifebalance.
Overtime Hours•

Copyright © ONWARD HOLDINGS CO., LTD.

•

Through the promotion of activities
centered around the so-called "Kaeru
Kaigi" meetings, at which we consider
what needs to be done to improve ourwork styles, we achieved a 52.5%
reduction in average overtime hours permonth in FY02/22 compared to FY02/18
and an increase of 4.4 days in holidays
taken per year.
In addition, training programs toencourage employees to take childcare
leave and the establishment of the"Guidebook for Supporting Balance
Between Work and Childcare" have been
implemented, and as a result, the ratio ofmale employees taking childcare leave
reached 60%, approximately four times
the national average.

17.7 Hours

52.5%
Reduction

Number of Paid Leave Days
Taken
4.4 Days123.4Days
Increase
119.0 Days

8.4 Hours

FY2018FY2022FY2018FY2022% of Male Employees Taking
Paternity Leave
Over Four Timethe National
Average

60.0％Comparison between theprevious year (FY2018) when"Work Style Design" waslaunched and FY2022.

7.7％

FY2018(Note) The national average"ratio of male employees taking
childcare leave" in FY2021 was
13.97%.
FY2022© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

28

The Work Style Design is shown on slide 28.
With the aim of improving productivity through enhancing operational efficiency and achieving a work-lifebalance, we started promoting a work-style reform project, “Work Style Design,” four years ago, and wewant to accelerate it. As described here, overtime hours, the number of paid leave days taken and thepercentage of male employees taking paternity leave all were good results, and we want to continue todevelop the project even after the COVID-19 pandemic.
That concludes my explanation. Thank you very much.

07
Copyright © ONWARD HOLDINGS CO., LTD.

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

29
29

Consolidated Balance Sheet◼ Net assets increased to 85.0 billion yen, up 7.8 billion yen from the end of FY2021.
◼ Shareholders’ equity ratio increased to 47.0％ billion yen, up 4.6 pp from the end of FY2021.
◼ Current ratio increased to 117.2%, up 8.7 pp from the end of FY2021, further improving management stability.

▍Net Assets▍Shareholder's equity ratio
47.0%+4.6 pp+7.8
billion yen

85.0

42.4%

billionyen

End-FY2021

End-FY2022

850

77.2

▍Current ratio

Copyright © ONWARD HOLDINGS CO., LTD.

billionyen

117.2%

772+8.7 pp108.5%
End-FY2021

End-FY2022© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

30

End-FY2021

End-FY2022

EBITDA/Cash Flows▍EBITDA◼ EBITDA expanded significantly to

10.3 billion yen, up 6.4 billion yen
from FY2021.

+6.4
billion yen

10.3
billion yen

3.9
billion yen

FY2021

FY2022▍Cash Flows◼ Cash flows from operating activities amounted to 5.6 billion yen due to
Copyright © ONWARD HOLDINGS CO., LTD.

a return to the black for operating profit/loss.
◼ Cash flows from inv esting activities amounted to 4.3 billion yen due tothe sale of the hotel business in Guam.
◼ Free cash flow (operating cash flow + inv esting cash flow) amounted

to 10.0 billion yen.

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

31

Capital Expenditures/Depreciation and Amortization▍Capital Expenditures◼ Capital expenditures decreased by 0.8 billion

5.7
billion yen

●●
41

4.9

billion yen
億円yen
billionyen from the prev ious fiscal year to 4.9 billion.
◼ Capital inv estments in factories in Dalian andother locations were completed in the prev ious
FY2021.
◼

During the fiscal year under rev iew,
inv estments were carefully selected andeffectively implemented, including DX, OMO
and other areas.

FY2021

FY2022

4.6
35

billion yen▍Depreciation and Amortization

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Depreciation and amortization were

4.3 billion yen, down 300 million fromFY2021.

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

32

billion yen
億円

4.3
33
億円

FY2021

FY2022

08
Copyright © ONWARD HOLDINGS CO., LTD.

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

33
34
33

FY2022 Full-Year Net Sales & Operating Profit
Increases/Decreases by Company(Billion yen)

▍Net Sales
+9.7

+0.5

+0.5

+0.6

+0.3

176.1
-1.5

-1.1

+0.4

+0.5

+0.9

(＋7.6)

Consolidated
elimination

FY2022
Full year

-3.2
168.5

FY2021
Full year

OnwardKashiyama +HD

OnwardTradingIslandChacott

Creative
Yoko

YamatoOtherdomestic
businesses

Europe+0.3+0America

Asia▍Operating Profit
+0.2

+6.4

+0

+0.1

+0.2

5.2

+0.5

(＋6.3)-0.2

Copyright © ONWARD HOLDINGS CO., LTD.

-0.8

-1.1
FY2021
Full year

OnwardKashiyama +HD

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

34

-0.5

Creative
Yoko

YamatoOtherdomestic
businesses

EuropeAmerica

Asia

Consolidated
elimination

FY2022
Full year

FY2022 Full-Year: Breakdown of SG&A Expenses,
Non-Operating Profit/Loss and Extraordinary Profit/Loss (Consolidated)(Million yen)1

35,312

YoY(% of Change)

FY202235,036

-0.8%

2

Rent

23,277

24,499+5.3%

3Transportation

6,195

6,238

+0.7%

4

Copyright © ONWARD HOLDINGS CO., LTD.

Personnel

FY2021

Promotion andAdvertising

4,778

5,505

Non-Operating Profit

FY2021

FY2022

YoY(% of Change)

3,423

1,380

-59.7%

1,392

233-83.3%

99

789+697.0%

11

Interest income

12

Foreign exchange gains

13

Subsidy income

1,013

134

-86.8%

14

Other

917

220

-76.0%

15

Non-Operating Loss

1,836

1,274

-30.6%

16

Interest expenses

391

363

-7.2%

17

Share of loss of entities
accounted for using equity
method73

46-37.0%

5

Depreciation

3,461

3,595

+3.9%
18

Other

1,370

863

-37.0%

6

Other

15,668

16,664+6.4%

19

Total Non-Operating
Profit/Loss

1,587

106

-93.3％

7

Total SG&A
Expenses

88,691

91,537+3.2%

20

Extraordinary Profit

21,3271,878-91.2%

17,92121-99.9％

8

Extraordinary
Loss Adjustment

1,620

9

(Reference)
Effective SG&A
Expenses

23

Gain on sales of non-current
assetsGain on sales of investment
securities
Gain on sales of shares ofsubsidiaries and associates

24
25

21

90,311

5
91,542© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

35+15.2%(Million yen)10

-99.7%
+1.4%

22

105

527

+401.9%

2,944

1,300

-55.8%

Other

356

29

-91.9%

Extraordinary Loss

7,921

3,388

-57.2%

26

Loss due to closing and other

1,620

5

-99.7%

27

1,829

-

-

28

Loss on sales of shares ofsubsidiaries and associates
Loss on liquidation ofsubsidiaries and associates

1,968

-

-

29

Impairment loss

1,741

2,906

-66.9%

761

475-37.6%

13,406-1,510

-

30
31

Other

Extraordinary Profit/LossEnd-FY2022 Consolidated Balance SheetFY2021

FY2022

End

End

Change(Billion yen)

1
2

Current Assets

157.7

159.1

+1.4

60.5

62.2

+1.7
-1.4

3

Cash and Deposits

15.2

13.8

4

Accounts
Receivable-trade

14.2

13.9

-0.3

5

Inventory

26.8

30.7

+3.9

97.2

96.9

-0.3

6

Non-current Assets

7

Property, Plant andEquipment

58.0

53.1

-4.9

8

Intangible Assets

9.3

9.1

-0.2

9

Investments andOther Assets

29.8

34.7

+4.9

80.4

74.1

-6.3

10

Copyright © ONWARD HOLDINGS CO., LTD.

Total Assets

Total Liabilities

Increase in purchases to expand sales

Sale of Guam hotel

Increase in investment securities due to revaluation

11

Accounts Payabletrade

18.2

21.4

+3.2

Increase in purchases to expand sales

12

Borrowings

35.1

27.2

-7.9

Repayment of debt

13

Other

27.1

25.5

-1.6

14

Total Net Assets

77.2

85.0

+7.8

15

Shareholder’s Equity
Ratio

42.4%

47.0%

+4.6%

16

Current Ratio

108.5%

117.2%+8.7%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

36

Reasons for change

FY2023 Consolidated Performance Forecast

First Half
(Million yen)

1

Net Sales

2Gross Profit（% of Sales）

3

4

82,166FY2023+4,03444,73547,600+2,865(54.4%)(55.2%)

44,542

46,600（% of Sales）(54.2%)(54.1%)

Operating Profit

Second Half

Change86,200

SG&A Expenses（% of Sales）

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022193

1,000(0.2%)(1.2%)+2,058

+807

+4.9%

FY2022

93,906FY2023Full-Year

Change98,800+4,894+2,784+6.4%

52,01654,800(+0.8%)(55.4%)(55.5%)+4.6%

46,99548,800(-0.1%)(50.0%)(49.4%)+418.1%

5,021

6,000

(+1.0%)(5.3%)(6.1%)+1,805+979% ofChangeFY2022

FY2023

176,072

185,000+8,928+5.4%

96,751

102,400+5,649(-0.1%)(54.9%)(55.4%)

+5.2%

+3.8%

91,537

95,400(-0.6%)(52.0%)(51.6%)+19.5%

5,214

7,000

(+0.8%)(3.0%)(3.8%)

Change% ofChange+5.1%+5.8%(+0.5%)+3,863+4.2%(-0.4%)+1,786+34.3%(+0.8%)

5

Recurring Profit

654

700

+46

+7.0%

4,665

5,600

+935

+20.0%

5,319

6,300

+981

+18.4%

6

Net Profit

476

1,400

+924

+194.1%

2,585

2,600

+15

+0.6%

3,061

4,000

+939

+30.7%

7

EBITDA※

2,838

3,600

+762

+26.8%

7,535

8,500

+965

+12.8%

10,373

12,100+1,727+16.6%*Note: EBITDA = operating profit + depreciation and amortization.

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

37

% of
ChangeFY2023 Forecast of Net Sales & Operating Profit by Segment

First Half

2

3

4

Copyright © ONWARD HOLDINGS CO., LTD.

5

Apparel

FY2022

FY2023

Change% ofChangeFY2022

FY2023

Change% ofChangeFY2022

FY2023

Change59,70463,086+3,382+5.7%

68,96871,881+2,913+4.2%

128,672

134,967+6,295+4.9%

Operating
Profit

484

1,179

+695

+143.6%

4,530

5,645

+1,115+24.6%

5,014

6,824

+1,810+36.1%% ofChangeNet Sales

19,155

20,267+1,112+5.8%

19,624

21,234+1,610+8.2%

38,77941,501+2,722+7.0%

LifestyleOperating
Profit

1,484

1,645

+161

+10.8%

1,243

1,307

+64

+5.1%

2,727

2,952

+225

+8.3%

Net Sales

78,85983,353+4,494+5.7%

88,592

93,115+4,523+5.1%

167,451

176,468+9,017+5.4%

Operating
Profit

1,968

2,824

+856

+43.5%

5,773

6,952

+1,179+20.4%

7,741

9,776

+2,035+26.3%Net Sales

7,733

7,886

+153

+2.0%

9,517

10,745+1,228+12.9%

17,25018,631+1,381+8.0%

Operating
Profit-1,132

-810

+322

42

428

+386

+919.0%-1,090-382+708

Net Sales

82,166

86,200+4,034+4.9%

93,90698,800+4,894+5.2%

176,072

185,000+8,928+5.1%

Operating
Profit

193

1,000

+807

+418.1%

5,021

6,000

+979

+19.5%

5,214

7,000

+1,786+34.3%

Domestic Total

Overseas Total

Consolidated Total

Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 7 other companies; 11 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato, and 6 other companies; 9 companies in total)
Overseas (8 companies in the JOSEPH Group, J.PRESS, Onward Fashion Trading, and 12 other companies; 22 companies in total)
Note: The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

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

38

Full-YearNet Sales(Million yen)

1

Second HalfFY2023 Forecast of Net Sales & Operating Profit by Company
First Half
(Million yen)
1

2

3

4

5

6

7

8

Onward Kashiyama + HD

Onward Trading

Copyright © ONWARD HOLDINGS CO., LTD.

% of
ChangeFY2022

FY2023Full-Year

Change% ofChangeFY2022

FY2023

Change% ofChange46,05548,740+2,685+5.8%

55,05456,439+1,385+2.5%

101,109

105,179+4,070+4.0%

Operating
Profit

332

475

+143

+43.1%

4,192

4,486

+294

+7.0%

4,524

4,961

+437

+9.7%

Net Sales

6,865

6,935

+70

+1.0%

6,785

7,741

+956

+14.1%

13,65014,676+1,026+7.5%+11.4%

Operating
Profit

523

537

+14

+2.7%

498

600

+102

+20.5%

1,021

1,137

+116

Net Sales

2,970

3,171

+201

+6.8%

3,315

3,394

+79

+2.4%

6,285

6,565

+280

+4.5%

Operating
Profit

22

89

+67

+304.5%

58

118

+60

+103.4%

80

207

+127

+158.8%Net Sales

4,714

4,913

+199

+4.2%

4,135

4,497

+362

+8.8%

8,849

9,410

+561

+6.3%

Operating
Profit

342

392

+50

+14.6%

0

43

+43

342

435

+93

+27.2%Net Sales

2,562

2,715

+153

+6.0%

3,239

3,313

+74

+2.3%

5,801

6,028

+227

+3.9%

Operating
Profit

108

115

+7

+6.5%

311

361

+50

+16.1%

419

476

+57

+13.6%Net Sales

10,106

10,722

+616

+6.1%

10,523

10,999

+476

+4.5%

20,62921,721+1,092+5.3%

Operating
Profit

703

841

+138

+19.6%

786

809

+23

+2.9%

1,489

1,650

+161

+10.8%

Domestic Subtotal

Net Sales

32,804

34,613+1,809+5.5%

33,53836,676+3,138+9.4%

66,342

71,289+4,947+7.5%(Excl. Onward
Kashiyama + HD)

Operating
Profit

1,636

2,349

+713

+43.6%

1,581

2,466

+885

+56.0%

3,217

4,815

+1,598+49.7%Net Sales

4,244

4,419

+175

+4.1%

5,716

6,057

+341

+6.0%

9,960

10,476

+516

+5.2%

Operating
Profit

-514

-473

+41

378

570

+192

+50.8%

-136

97

+233

1,459

IslandChacott

Creative Yoko

YamatoEuropeAmerica

10

Asia

11

Overseas Subtotal

12

Consolidated Total

724

-35

Operating
Profit

-407

-206

+201

Net Sales

2,730

759

2,743

+13

-4.6%

877
-169

-31

+138

+0.5%

2,924

3,953

735

+1,029-142-16.2%

1,636
-576

-237

+339

+35.2%

5,654

6,696

+1,042

-167

-111

+56

+2.0%

9,517

10,745

42

-177

-378

-242

+136

+1,228+12.9%

17,25018,631+1,381428+386+919.0%-1,090-382+708-10.8%+18.4%

Operating
Profit

-211

-131

+80

Net Sales

7,733

7,886

+153

Operating
Profit-1,132-810+322

Net Sales

82,166

86,200+4,034+4.9%

93,90698,800+4,894+5.2%

176,072

185,000+8,928+5.1%

Operating
Profit

193

1,000

+807

+418.1%

5,021

6,000

+979

+19.5%

5,214

7,000

+1,786+34.3%

Note: The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

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

39

Second Half

ChangeNet Sales

Net Sales
9

FY2023

FY2022+8.0%

FY2023 Performance Forecasts by GroupFirst Half
(Million yen)

+ HD

Onward Kashiyama

Domestic Subtotal(Excl. Onward Kashiyama + HD)

Overseas Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022

FY2023

Second Half

ChangeFY2022

FY2023Full-Year

Change% ofChangeFY2022

FY2023

Change1

Net Sales

46,05548,740+2,685+5.8%

55,05456,439+1,385+2.5%

101,109

105,179+4,0702Gross Profit

27,15828,812+1,654+6.1%

32,91033,991+1,081+3.3%

60,06862,803+2,735(% of Sales)(59.0%)(59.1%)(+0.1%)(59.8%)(60.2%)(+0.4%)(59.4%)(59.7%)

3

SG&A Expenses

26,82628,337(% of Sales)(58.2%)(58.1%)

332

475(% of Sales)(0.7%)(1.0%)

1

Net Sales

32,804

34,613

2

Gross Profit

16,156

17,356(% of Sales)(49.3%)(50.1%)

SG&A Expenses

14,52015,007(% of Sales)(44.3%)(43.4%)

4

3

Operating Profit

Operating Profit

1,636

2,349

(% of Sales)(5.0%)(6.6%)

1

Net Sales

7,733

7,886

2

Gross Profit

3,161

3,296

(% of Sales)(40.9%)(41.8%)

4

3

SG&A Expenses(% of Sales)

4

Operating Profit(% of Sales)

4,293

4,106

(55.5%)(52.1%)-1,132-810--+1,511+143+5.6%

28,71829,505(-0.1%)(52.2%)(52.3%)+43.1%

4,192

4,486

(+0.3%)(7.6%)(7.9%)+1,809+5.5%

33,53836,676+1,200+7.4%

16,36018,436(+0.7%)(48.8%)(50.3%)+3.4%

14,77915,970(-0.9%)(44.1%)(43.5%)

+487

+713

+43.6%

1,581

2,466

(+1.8%)(4.7%)(6.7%)

+153

+2.0%

9,517

10,745

+135

+4.3%

4,391

4,616

(+0.9%)(46.1%)(43.0%)

-187

+322

Calculated using
simple sums.
© CopyrightNote:2007-2015
ONWARDHOLDINGS CO.,LTD.

40

% of
Change

-4.4%

4,349

4,188

(-3.4%)(45.7%)(39.0%)

42428(0.4%)(4.0%)

+787
+294

+2.7%

55,544

57,842(+0.1%)(54.9%)(55.0%)% ofChange+4.0%+4.6%(+0.3%)+2,298+4.1%(+0.1%)

+7.0%

4,524

4,961

(+0.3%)(4.5%)(4.7%)+3,138+9.4%

66,342

71,289+4,947+7.5%+2,076+12.7%

32,51635,792+3,276+10.1%(+1.5%)(49.0%)(50.2%)+8.1%

29,29930,977(-0.6%)(44.2%)(43.5%)+1,191+885+437(+0.7%)+1,678+56.0%

3,217

4,815

(4.8%)(6.8%)+1,228+12.9%

17,25018,631+1,381

+225

+5.1%

7,552

7,912

+360

(-3.1%)(43.8%)(42.5%)

+386

-3.7%

8,642

8,294

(-6.7%)(50.1%)(44.5%)+919.0%-1,090-382(+3.6%)

-

-

+5.7%
(-0.7%)(+2.0%)

-161

+9.7%
(+0.2%)+1,598+49.7%(+2.0%)

+8.0%
+4.8%
(-1.3%)

-348

-4.0%
(-5.6%)+708

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.