Presentation of Interim Results for the
Fiscal Year Ending February 28, 2009

＜ Outline ＞¾Fiscal 2009 Consolidated Performance and Plan・・・・Ｐ1¾First Half Operating Highlights・・・・・・・・・・・・・・・・・・・Ｐ2～Ｐ3¾Second Half Business Plan･････････・・・・・・・・・・・・・・Ｐ4～Ｐ7¾Operating Summary: Japan and Overseas・・・・・・・・・・Ｐ8¾Three-Year Medium-Term Management Plan・・・・・・・Ｐ9¾Plan for Merging Two Companies・・・・・・・・・・・・・・・・・Ｐ10＜Reference materials＞
Principal Financial Indicators･･････・・・・・・・・・・・・・・・・・Ｐ11～Ｐ15

Fiscal 2009 Consolidated Performance and PlanFirst Half Results
Consolidated

Net sales(¥ 100 million)

Fiscal 2009

Fiscal 2008

1,325

1,408

△83

（△5.9％）

60

74（4.5％）（5.3％）△14（△19.1％）△41（△37.7％）△39（△60.7％）

Operatingincome(%)
Ordinary
income(%)
Net income
(%)

68

109

（5.2％）（7.8％）

25

64（1.9％）（4.5％）% change

Plans for Fiscal 2009(¥ 100 million)

Net sales

Operatingincome(%)
Ordinary
income(%)

Second Half Plan
Consolidated

Net sales

Operatingincome(%)
Ordinary
income(%)
Net income(%)

Fiscal 2009

Fiscal 2008

% change

2,790

2,870

△80

（△2.8％）

159

186（5.7％）（6.5％）△27（△ 14.6％）

184

241

（6.6％）（8.4％）△57（△ 23.7%）

65（2.3％）

122（4.3％）△57（△46.8％）(¥ 100 million)

Fiscal 2009

Fiscal 2008

1,465

1,462

99

112

（6.8％）（7.7％）

116

132（7.9％）（9.0％）

40

58（2.7％）（4.0％）% change＋3（0.2％）△13（△11.7％）△16（△12.2％）△18（△31.6％）

Net income(%)

1First Half Operating Highlights
Apparel Business (Domestic)
ONWARD KASHIYAMA

Department stores¾Sales down because of poor market conditions¾Gross margin ratio improved due to ‘selection and concentration’,including elimination of unprofitable brands¾Sales of the core NIJYUSANKU brand met the plan partly owing to benefits of TV commercials
New distribution channels (other than dept. stores)¾Operations are generally recovering¾Steady growth in earnings from the core anySiS brand
ONWARD TRADING¾Core uniform and sales promotion goods businesses performing as planned¾Lackluster performance of fashion business due to structural change in JA* distribution*JA : Agricultural Cooperative Association

CHACOTT¾Lower sales due to products unfit for changing market¾Downturn in sales at major directly operated stores
BUS STOP¾Sales down because of slowdown in luxury market
2

First Half Operating Highlights
Apparel Business (Overseas)
Europe¾Earnings down at GIBO’CO. Group and JOSEPH Group because of higher expenses forinvestments to support growth in the future
Asia¾Sales in line with plans, mainly at ONWARD FASHION TRADING (China)

Other Related Businesses
ACROSS TRANSPORT¾Earnings as planned by efficient use of expenses to offset the impact of the higher
cost of crude oil
ONWARD CREATIVE CENTER¾Sales down sharply due to reduced investments in store facilities by group companies
ONWARD RESORT&GOLF¾Golf business earnings improved but the hotel business earnings declinedwith decrease in the number of vacationers caused by high fuel surcharges
3

Second Half Business Plan
Apparel Business（Domestic）
ONWARD KASHIYAMABrand management with an even tightly concentrated useof resourcesIncrease the gross margin and become more profitable
by using expenses more efficiently
Core brands

・Aiming for higher earnings from the NIJYUSANKU and JIYUKU backed by moreadvanced merchandising and distinctive store designs, along with high-profile advertising
campaigns＜ NIJYUSANKU ＞－Plan to reinforce the appeal of the brand’s image by continuing to feature Miho Kanno in advertisements－Expand store remodeling program＜ JIYUKU ＞－Start using Miho Nakayama in advertisements－Use innovative merchandising and store relocation to achieve growthalong with NIJYUSANKUExisting brands

・Increase sales per store and improve operating efficiency－Upgrade planning and merchandising skills and sales skills
New brands

・Create new strategies for success in fiscal 2010
－Develop brands and merchandise for department stores and other retailchannels that reflect ongoing changes in the market
4Second Half Business Plan
Apparel Business（Domestic）
ONWARD TRADING

Improve operating efficiency in each business・Concentrate resources on the core uniform and sales promotion goods businesses－Become more competitive by developing new products and distribution channels－Improve profitability by using the company’s own overseas production bases and upgrading procurement
capabilities

・Turn around unprofitable businesses－Reexamine the organization and use of human resources－Start operations targeting new business domains
CHACOTT

Specialize in businesses associated with dancing andbecome more competitive
・Improve activities at directly operated stores－Link merchandising with sales promotion－Improve profitability by remodeling stores・Reinforce strategies for each distribution channel－Strengthen online sales and out-of-store sales

・Improve store operations by using expenses more efficiently
BUS STOPStrengthen the development of imported luxury merchandise as the pioneer among groupcompanies in this field・Improve profitability of retail business－Raise accuracy of merchandise selections and lower the pct. of unsold merchandise－Increase earnings in the accessory business5Second Half Business Plan
Apparel Business（ Overseas ）EuropeExpand Business Scale of GIBO’CO. Group and JOSEPH Group＜ GIBO’ CO. Group ＞
・Improve profitability by boosting productivity at all group companies
・Determine initiatives for Jil Sander AG, a newly acquired company＜ JOSEPH Group ＞
・Move forward with global strategy under leadership of new CEO Sara Ferrero・Put into practice the merchandise strategy and store strategy
Asia

Operate businesses in a manner that reflects characteristics
of each region
・Open more stores while placing emphasis on profitability・Introduce new brands to match shifts in consumer preferences
ＪＩＬ ＳＡＮＤＥＲ

09SS Collection

United StatesFurther increase profitability
・Focus on the J. Press and JOSEPH retail businesses, increase sales of each store

6Second Half Business Plan
Other Related Businesses
ACROSS TRANSPORT

Increase profitability as a logistics company specializing in fashion
・Build relationships with new customers
・Improve operating efficiency through rigorous expense management

ONWARD CREATIVE CENTER

Strengthen design and planning skills to build a sound base for operations
・Outstanding design and construction in aspects of economics and fashionability
・Improve organization and systems to achieve low-cost operations

ONWARD RESORT&GOLF

Build an earnings base as a comprehensive resort company
・Leverage synergies in the Guam hotel and golf businesses
to attract more visitors
・Develop new markets for vacation, hotel and golf visitors
7Performance and Plans by Geographic Area
FY2009 Sales Plan
(Area wise share)Japan¥2,52.0billion（
billion（84％）84％）
Europe¥35.6billion
12％）35.6billion（12％GIBO’CO.Group
CO.Group
JOSEPH Group
Other companies

Asia¥8.1billion
billion（3％）
8.1
ONWARD FASHION TRADING (China)
SHANGHAI ONWARD FASHION
Other companies

ONWARD HOLDINGSONWARD KASHIYAMAONWARD TRADINGCHACOTT
BUS STOPACROSS TRANSPORT

United States¥3.8billion（1％）
3.8billion（
J.PRESSONWARD BEACH RESORT GUAMONWARD GOLF RESORT GUAM
Other companies

Other companies（Unit: ¥ million)

Domestic businesses（%）

Overseas businesses（%）
Total before eliminations（%）

Fiscal 2009 First Half

Fiscal 2009 Second Half

Fiscal 2009 (Full Year)Net Sales

Operating Income

Net Sales

Operating Income

Net Sales

Operating Income

Amounts （Change）

Amounts (Change)

Amounts （Change）

Amounts (Change)

Amounts （Change）

Amounts (Change)

120,240(△6.3%)

5,368

131,7499,208

251,989(△3.7%)

14,576

21,369(△3.0%)

47,535(4.4%)

141,609(△5.8%)

299,524(△2.5%)(△11.4%)(△1.2%)(4.5%)

511(△47.5%)(2.4%)

5,879(4.2%)(△16.4%)

26,166(11.4%)

157,915(0.7%)(△2.4%)(7.0%)

1,505(△19.2%)(5.8%)

10,713(6.8%)(△5.1%)(△5.9%)(5.8%)

2,016(△28.9%)(4.2%)

16,592(△9.5%)(5.5%)

8

Three-Year Medium-Term Management Plan（Fiscal2009～2011）

Basic Group Strategy【Group corporate expansion strategy 】【Realize synergies among businesses 】

Expansion of business scalein each business domains

Synergies among Group companies
in Japan and overseas【Expansion of business domains】【Contribute to stakeholder value】

M&A and overseas business strategy

Return to shareholders, contribution to society,environmental preservation, high compliance standards

M&A in second half of FY2009

Higher earnings＜Creative Yoko Co., Ltd.＞＜Jil Sander AG＞
・Soothing goods including pet fashion products
・A luxury brand recognized around the world
・The only company in this sector with integrated
・Features innovativeness and pure, simple designs operation of planning, production and sales
・A strategic brand with global growth potential
・Takes the Onward Group into a new business domain

Plan to capture synergies with other group companies to contribute to growth incorporate value
9Plan for Merging Two Companies
Jil Sander AG

Creative Yoko Co., Ltd.
（Unit: ¥ million）

Exchange rate: ¥150/euro

Net sales
Operating income（Ratio）
Ordinary income（Ratio）

Planned for
Fiscal 2011

Actual for
Fiscal 2008

25,00018,7001,650

120（6.6％）（0.6％）

1,000△1,660（4.0％）（―）

700△1,680（2.8％）（―）

Net income（Ratio）（Unit: ¥ million）
Planned for
Fiscal 2011

% change＋6,300（33.7％）

Prospects for
Fiscal 2008

10,000Net sales＋1,530（ ）Operating income＋2,660（ ）Ordinary income（Ratio）＋2,380（ ）Net income（Ratio）（Ratio）

Net sales

＋400

700

（11.0％）（8.1％）（57.1％）

1,000

700

（10.0％）（8.1％）＋300（42.9％）

500

350（5.0％）（4.1％）＋150（42.9％）（ Unit: ¥ million ）Operating income

Ordinary income

Net income<for reference>
Three-year Management Plan Targets

6,740

△250

0

△510

Net sales

Fiscal 2011 Total for 2 companies(Annual figures)

35,000

2,750

2,000

1,200

Operating income

28,260（16,.3％）

1,100

Fiscal 2009 Total for 2 companies(Figures for applicable period)

Increase＋1,4008,600

Highlights of the Three-year Management Plan
Targets% change

3,000¾Goodwill amortization for Jil Sander andCreative Yoko: About ¥1.6 billion (annual)

2,000

1,710

（Ratio）

350,000
30,000（8.6％）

Ordinary income（Ratio）

35,000Net income（Ratio）

18,000（10.0％）（5.1％）

10

＜Reference materials＞ Principal Financial Indicators

Consolidated Results and Plan in Fiscal 2009

（Unit: ¥ million）

First half (Actual)%changeFiscal
2009

Fiscal2008△8,367（△5.9%）

146,531

63,252△3,336（△5.3%）（45.2%）（44.9%）（0.3%）

Operatingexpenses

53,92655,845△1,919(Ratio)（40.7%）（39.6%）（1.0%）

Operatingincome

5,990

7,407

△1,417（4.5%）（5.3%）（△0.8%）

6,825

10,948△4,123（5.1%）（7.8%）（△2.6%）

2,497

6,357

△3,860Net sales

Fiscal
2009

Fiscal2008

132,469

140,836

59,916

Second half (Planned)

ChangeFull fiscal year (Planned)

Change%changeFiscal
2009

Fiscal2008

Change%change146,196335（0.2%）

279,000

287,032△8,032（△2.8%）

70,084

66,9383,146（4.7%）

130,000

130,190△190（△0.1%）(47.8%)(45.8%)（2.0%）(46.6%)(45.4%)（1.2%）

60,17455,717

4,457

114,100

111,5622,538(41.1%)(38.1%)（3.0%）(40.9%)(38.9%)（2.0%）

9,910

11,221△1,311

15,90018,628△2,728(6.8%)(7.7%)（△0.9%）(5.7%)(6.5%)（△0.8%）

11,575

13,180△1,605

18,40024,128△5,728(7.9%)(9.0%)（△1.1%）(6.6%)(8.4%)（△1.8%）

4,003

5,856

△1,8536,500

12,213△5,713(2.7%)(4.0%)（△1.3%）(2.3%)(4.3%)（△2.0%）

Gross profit(Ratio)(Ratio)Ordinary
income(Ratio)Net income(Ratio)（△3.4%）（△19.1%）（△37.7%）（△11.7%）（△60.7%）（1.9%）（4.5%）（△2.6%）（8.0%）（△12.2%）（△31.6%）（2.3%）（△14.6%）（△23.7%）（△46.8%）11

Results of Principal Consolidated Subsidiaries（Unit: ¥ million）＜ Net sales ＞

First half of fiscal 2009 (Actual)
AmountChange(Amount)% Change（Unit:¥ million）

Plans for fiscal 2009

Second half of fiscal 2009 (Planned)
Change(Amount)

Amount% ChangeAmountChange(Amount)% Change

ONWARD HOLDINGS CO., LTD. +ONWARD KASHIYAMA CO., LTD.

90,502△3,967△4.2％

97,498△5,573△5.4 ％

188,000△9,540△4.8 ％

ONWARD TRADING CO., LTD.

10,294△1,203△10.5 ％

9,955

△70

△0.7 ％

20,249△1,273△5.9 ％CHACOTT CO., LTD.

5,574

△138

△2.4 ％

5,420

+12

0.2 ％

10,994△126△1.1 ％ACROSS TRANSPORT CO., LTD.

5,836

△130

△2.2 ％

5,871△54△0.9 ％

11,707△184△1.5 ％

ONWARD CREATIVE CENTER CO., LTD.

1,744

△2,036△53.9 ％

2,830

+359

14.5 ％

4,574△1,677△26.8 ％

ONWARD RESORT Group

2,722

△514

△15.9 ％

2,785

△22

△0.8 ％

5,507

△536

△8.9 ％JOSEPH Group

6,110△1,275△17.3 ％

6,081

△962

△13.7 ％

12,191△2,237△15.5 ％

GIBO’ CO. Group

9,594+1,006

11.7 ％

9,583

△307

△3.1 ％

19,177

+699

3.8 ％

＜Operating income＞

First half of fiscal 2009 (Actual)
AmountChange(Amount)% Change

Plans for fiscal 2009

Second half of fiscal 2009 (Planned)
Change(Amount)

Amount% Change

Change(Amount)

Amount% Change

ONWARD HOLDINGS CO., LTD. +ONWARD KASHIYAMA CO., LTD.

4,067

△681

△14.3 ％

8,233

△795

△8.8 ％

12,300△1,476△10.7 ％

ONWARD TRADING CO., LTD.

822

△40

△4.6 ％

304△5△1.6 ％

1,126△45△3.8 ％CHACOTT CO., LTD.

401

△23

△5.4 ％

353

＋1

0.3 ％

754

△22

△2.8 ％ACROSS TRANSPORT CO., LTD.

114

＋46

67.6 ％

116

＋170

230

＋216

ONWARD CREATIVE CENTER CO., LTD.

△49

△135

63

＋97

14

△38

ONWARD RESORT Group

△50

△52

△108

△85

△158

△137

JOSEPH Group

△315

△167

360

△8

△2.2 ％

45△175△79.5 ％

GIBO’ CO. Group

1,107

△188

1,340

△272

△16.9 ％

2,447

△460

△15.8 ％

△14.5 ％

△73.1 ％

12

Trends in Capital Investment and Depreciation＜Ca pital Investment＞

Onward Holidings + Onward Kashiyama（¥ million)

Consolidated

10,00012,0008,000＜
Depreciation＞
Onward Holidings+ Onward
Kashiyama（¥ million)
7,000

Consolidated(\ million)

8,000
6,000

10,0008,000

OnwardHoldings+
OnwardKashiyama

8,000

6,000

6,000

5,000
6,000

OnwardHoldings+
OnwardKashiyama

4,000

4,000
3,000

4,000
4,000

2,000
2,000

2,000
2,000

Consolideted

Consolideted

1,000

0

0
0

＜Depreciation＞（\ million）＜ Capital investment ＞

12,000

2005

2006

2007

2005

2006

2007

2008
2008

2009 (Fiscal year)

0

2009

2005

2006

2007

2005

2006

2007

2008
2008

(Fiscal year)＜ Capital investment＞

2009(Fiscal year)

2009(Fiscal year)＜ Depreciation ＞（¥ million)

Consoli
dated
OnwardHoldings+
OnwardKashiyama

Fiscal2005(Actual)Fiscal2006(Actual)Fiscal2007(Actual)Fiscal2008(Actual)First half offiscal2009(Actual)

Plannedfor fiscal
2009

9,076

8,053

10,506

9,566

1,239

5,000

3,500

8,280

7,238

8,046

5,255

1,181

（¥ million)
Fiscal2005(Actual)Fiscal2006(Actual)Fiscal2007(Actual)Fiscal2008(Actual)First half offiscal2009(Actual)

Plannedfor fiscal
2009

Consoli
dated

7,041

7,053

6,697

7,340

2,992

6,500

OnwardHoldings+
OnwardKashiyama

5,353

5,542

4,890

5,109

2,324

5,000

13

Onward Kashiyama Sales Floor Area and Monthly Sales＜ Sales Floor Area ＞
Fiscal 2005
(Actual)Department
storesNew
Distribution
channels

Fiscal 2006
(Actual)Fiscal 2007
(Actual)Fiscal 2008
(Actual)First half of fiscal
2009 (Actual)

Planned for fiscal
2009

Sales (¥ million)

133,973

6.3%

139,376

4.0%

148,9116.8%

145,263△2.4%

67,121△4.6%

140,934△5.2%

Sales floor area（㎡）

175,000

10.8%

174,310△0.4%

182,480

4.7%

175,200△4.0%

176,340△3.6%

173,800△0.8%

Sales (¥ million)

29,31814.0%

30,0642.5%

32,1386.9%

33,263

3.5%

16,077

1.3%

33,310

0.1%

Sales floor area（㎡）

87,47019.1%

92,190

5.4%

95,8303.9%

93,060△2.9%

93,800△1.4%

92,090△1.0%＜Trends in monthly sales ＞(％）

Fiscal 2009

Mar

Apr

May

June

July

First half
TOTAL

Aug

Men’s

12

△5

△7

△13

△10

△10

△5

Women’s

6

△5

△8

△13

△2

△1

△4

Children’s

△2

△6

△8

△15

△4

△3

△6

Kimonos

△7

△21

14

△14

△17

2

△10

Other

△1

△5

2

△3

△7

8

△1

Total

6

△5

△7

△13

△5

△1

△4

14

Onward Kashiyama Sales by Type・Sales by Distribution Channel＜ By Apparel Type ＞（¥ million)

First half of fiscal 2009
Amount% Change

Planned for Second half of fiscal
2009
Amount% Change

Planned for fiscal 2009
Amount% Change

Men’s

21,541△5.4％

25,808△7.2 ％

47,349△6.4 ％

Women’s

61,017△3.6％

63,536△4.7 ％

124,553△4.2 ％

Children’s

3,379

△6.3％

3,979

△2.7 ％

7,358△4.4 ％

Kimonos

1,686△10.2％

1,201△11.2 ％

2,887

△10.6 ％

Other

2,879

△1.4％

2,974

△4.6 ％

5,853△3.0 ％

Total

90,502△4.2％

97,498△5.4 ％

188,000△4.8 ％＜ By Distribution Channel ＞（¥ million)

First half of fiscal 2009
Amount% Change

Planned for Second half of fiscal
2009
Amount% Change

Planned for fiscal 2009
Amount% Change

Department stores

67,121△4.6％

73,813△5.7 ％

140,934△ 5.2％New distribution channels

16,077

1.3％

17,233△0.9 ％

33,3100.1 ％Specialty stores

2,768

△9.1％

2,700

△9.2 ％

5,468△9.1 ％

Chain stores

1,067△15.7％

1,096△17.7 ％

2,163

△16.7 ％

Other

3,469

△12.2％

2,656△14.5 ％

6,125

△13.2 ％

Total

90,502△4.2％

97,498△5.4 ％

188,000△4.8 ％

15

The information in this presentation is not a solicitation to purchase or sell
Onward Holdings stock. Opinions, forecasts and other statements not based on
historical facts represent the judgments of the company at the time this presentation
was prepared. Onward Holdings makes no guarantee regarding the accuracy of
the information in this presentation and may make revisions without prior notice.
Onward Holdings and the providers of this information assume no responsibility
whatsoever for any losses incurred in association with this information.