FY02/23 1H

Results Presentation Material

October 6, 2022

Today I’d like to provide an overview of our financial results for the first half of the fiscal year ending
February 28, 2023. I’ll be using a PowerPoint presentation, but I’ll also be referring to our consolidated
financial results summary and our monthly net sales report for September.
The page number in the PowerPoint presentation can be found in the bottom left corner. I’ll be referring tothis page number during my presentation.
First, please turn to page 4.

Onward Group’s Raison d’Être

Copyright © ONWARD HOLDINGS CO., LTD.

Enriching and Adding Color to People’s Lives
while Caring for the Planet1

Contents

01 Financial Summary

P. 3

2. FY02/23 Full-year Forecast

P.10

02 Overview of Group Management
1. Results of Global Business Reforms
2. Apparel Business Strategy

Copyright
LTD.
CO., LTD.
HOLDINGS CO.,ONWARD HOLDINGS© ONWARD
Copyright ©

P.16
P.17

(2) Expand D2C Brands

P.19(3) Promote Product Strategy, Including
Customized Products

P.21

4. Promotion of Sustainable Management

22

P.13

P.13

(1) Promote OMO Strategy

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

P. 3

1. FY02/23 1H Consolidated Results

5. Promotion of Work Style Design
6. Rebuilding of Digital Platforms

03 Financial Situation
04 DATA BOOK

P.24
P.29
P.33
P.36

P.38

P.41

01
Financial Summary

1. FY02/23 1H Consolidated Results

Copyright © ONWARD HOLDINGS CO., LTD.

2. FY02/23 Full-year Forecast

3

FY02/23 1H Highlights
Net Sales

82.2

billion yen+1.4 billion yen YoY+5.2 billion yen vs.
initial forecast

Net Profit

Operating Profit

Recurring Profit

0.2

0.7

0.5

+3.5 billion yen YoY+2.0 billion yen vs.
initial forecast+3.5 billion yen YoY+2.4 billion yen vs.
initial forecast-7.0 billion yen YoY+1.7 billion yen vs.
initial forecast

billion yen

billion yen

billion yen

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Sales in 1H, mainly at our core operating company Onward Kashiyama, exceeded
our initial forecast, due to particularly brisk sales at stores that introduced the OMO
service, and a recovery in our mainstay brands’ business thanks to a customercentric product strategy that includes made-to-order products.
◼ Our consolidated gross profit margin far exceeded our initial forecast as a result of
global business reforms that started in FY02/20, and the SG&A expense ratio
showed further improvement.
◼ As a result, in 1H the Group returned to profitability at all profit levels; operating
profit, recurring profit, and net profit, for the first time in four fiscal years.
◼ Net profit fell YoY in 1H because of a one-time factor in FY02/22 1H, when the
Company recorded substantial profit from the sale of real estate.

4Here are the highlights of the financial results from the first half.
Net sales came to ¥82.2 billion, an increase of ¥1.4 billion year on year and ¥5.5 billion higher than our
initial forecast. Earnings returned to the black at all profit levels in the first half for the first time in four
years; operating profit was ¥200 million, recurring profit was ¥700 million, and profit attributable to ownersof the parent was ¥500 million. On the net sales front, they topped our initial forecast thanks largely to arecovery in our mainstay brand businesses centering on the core operating company Onward Kashiyama.
As for services, sales were particularly brisk at stores where we have implemented the “Click & Try” OMO
service, which is an initiative we have continued to focus on for quite some time now.
In terms of products, our customer-oriented measures, including made-to-order products, have beenfavorably received, and the combination of these products and services has led to the recovery in sales.
Also, in terms of the benefits generated by the global business reforms, our consolidated gross profit
margin greatly exceeded our initial estimate. The SG&A ratio also improved.
As a result, profit returned to the black at all levels for the first time in four years. However, even thoughprofit attributable to owners of the parent remained in the black in the first half, it actually declined on theabsence of special factors; namely, the booking of considerable gains on the sale of real estate in the firsthalf of last year. In other words, the decline in net profit attributable to owners of the parent is attributable
to one-off factors.

FY02/23 1H: Consolidated Results (YoY)◼ Net sales increased by 1.4 billion yen YoY to 82.2 billion yen.
◼ Operating profit/loss improved by 3.5 billion yen YoY, returning to the black for the firsttime in four fiscal years.

FY02/22 Results

FY02/23 Results

1H

1H

YoY

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

% of Sales% of Sales

Change% of Change% of Sales
Change1

Net Sales

80,785-82,166-+1,381

+1.7%

-

2

Gross Profit

41,01850.8%

44,73554.4%+3,717

+9.1%

+3.6％

3

SG&A Expenses

44,31254.9%

44,542

54.2%

+230

+0.5%

-0.7％

4

Operating Profit-3,294

-

193

0.2%

+3,487

5

Recurring Profit-2,862

-

654

0.8%

+3,516

6

Net Profit

7,448

9.2%

476

0.6%

-6,972-93.6%-8.6％

7

EBITDA*

-687

-

2,838

3.5％

+3,525

Note: EBITDA = operating profit + depreciation and amortization.

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

5

Turning to page 5, results for the first half are shaded in yellow in the middle of the table.
Row 2 shows gross profit. The gross profit margin improved 3.6 percentage points year on year to 54.4%.
This is due to thoroughgoing sales initiatives aimed at limiting discounts and stringent inventory
management measures.
Row 3 shows SG&A expenses. The SG&A ratio improved to 54.2%, dipping 0.7 percentage points from thesame period last year.
As a result, operating profitability improved ¥3.5 billion, which represents a quick turnaround from theoperating loss of ¥3.3 billion recorded in the first half of last year.

FY02/23 1H: Changes in Consolidated Operating Profit◼ Improvement of operating profit/loss accelerated in 2Q versus 1Q.

Copyright © ONWARD HOLDINGS CO., LTD.

1Q Change+1 billion yen+2.6 billion yen

2Q Change© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

6

On page 6 you can see the trend in operating profit across the first and second quarters.
Of this operating surplus in the first half, operating profit improved by ¥1.0 billion year on year in the firstquarter, and then by a further ¥2.6 billion year on year in the second quarter. The increasingly greater
degree of improvement from the first to the second quarter clearly indicates a recovery.
In the first quarter there were lockdowns mainly in China, and production sites and distribution processes
were significantly affected. In the second quarter, Japan was hit by a seventh wave of COVID-19 infections
and even though no restrictions were enforced on people’s movements, customer traffic to stores started
to dwindle from the middle of July. What I especially want to say is, while it was definitely not smoothsailing in this kind of operating environment, we still managed to increase the breadth of improvement in
operating profitability.

FY02/23 1H: Results by Segment (YoY)◼ The domestic apparel business posted higher sales and operating profit turned to the black. The
lifestyle business recorded growth in net sales and operating profit.
◼ Net sales increased in the overseas lifestyle business, but turned down in the apparel businessdue to withdrawing from the Italian business.
◼ Operating loss increased temporarily YoY in the overseas business due to pent-up demand in
FY02/22 1Q before withdrawing from the Italian business, but was cleared from 2Q onward.
FY02/221H

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

1

Apparel2

Lifestyle3

Domestic Total

4

Apparel5Lifestyle6

Overseas Total

7

Consolidated Total

FY02/23
1H

ChangeYoY

Net Sales

55,92059,704+3,784

Operating Profit-3,331484+3,815Net Sales

17,823

19,155+1,332+7.5%

Operating Profit

1,191

1,484

+293

+24.6%Net Sales

73,74378,859+5,116+6.9%

Operating Profit-2,140

1,968+4,108Net Sales

10,7506,771-3,979

-244

-963

-719

Operating Profit
Net Sales

730

962

+232

Operating Profit

-424

-169

+255

11,4807,733-3,747-668-1.132-464

Net Sales

80,78582,166+1,381

Operating Profit-3,294193+3,487

Net Sales
Operating Profit+6.8%-37.0%+31.8%-32.6%

+1.7%

Note:
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 OFLONDON and 3other companies; 4 companies in total)© Copyright 2007-2015
ONWARDHOLDINGS
CO.,LTD.
The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.
7

Page 7 shows results for our domestic and overseas operations and for our segments, the apparel businessand lifestyle business.

Results for domestic operations were generally firm. Net sales increased in the domestic apparel businessand operating profit returned to the black. Both net sales and operating profit rose in the domestic lifestylebusiness. The lifestyle business has continued to achieve net sales and profit growth even during the
pandemic.
In overseas operations, however, the decrease in net sales stemming from our withdrawal from the Italianbusiness last fiscal year still affected earnings in the first quarter of this fiscal year. There was no impact
from the sale of the Italian business from the second quarter onwards, but it will be a factor in lower net
sales for the full-year in the apparel business. As for operating profitability, in overseas operations, theItalian business recorded a profit on such special factors as rush demand ahead of the withdrawal in thefirst quarter of last fiscal year, which explains the profit decline in the first quarter of this fiscal year, butfrom the second-quarter, results have not been and will not be affected by the withdrawal.

FY02/23 1H: Net Sales & Operating Profit Increases/Decreases by Company◼ Net sales increased by 1.4 billion yen YoY, with a 4.7 billion yen increase at Onward Kashiyama and otherfactors absorbing the 4.5 billion yen decline in Europe after withdrawing from the Italian business.
◼ Operating profit/loss returned into the black for the first time in four fiscal years due to factors such as 3.5 billion
yen in operating profit/loss improvement at Onward Kashiyama.

▍Net Sales(billion yen)

+0.1

+4.7

+0.3

+0.3

+0.8

82.2

-0.4

-0.7

+0.3

+0.5

(+1.4)

80.8-4.5

FY02/22 1H

OnwardKashiyama +HD

OnwardTradingIslandChacott

+0.1

+0.1

Creative
Yoko

YamatoOtherdomestic
businesses

EuropeAmerica

Asia

Guam Resort

Consolidated
elimination

FY02/23 1H▍Operating Profit+0.7

Copyright © ONWARD HOLDINGS CO., LTD.

+3.5

0.2

+0.1

+0.2

(+3.5)
-0.4

-0.1

-0.2

-0.5

-3.3

FY02/22 1H

OnwardKashiyama +HD

OnwardTradingIslandChacott

Creative
Yoko

YamatoOtherdomestic
businesses

EuropeAmerica

Asia

Guam Resort

Consolidated
elimination

FY02/23 1H

8Page 8 shows the changes in net sales and operating profit by group company in the first half.
I’d like to draw your attention to the ¥4.7 billion net sales increase and ¥3.5 billion improvement in
operating profitability at Onward Kashiyama, which are indicated by the yellow columns on the left side of
the graph. These results formed the crux of the group’s overall results in the first half. In Europe we booked
net sales of ¥4.5 billion immediately prior to our withdrawal from the Italian business in the first quarterlast year, which was a factor for a decrease in net sales by that same amount in the first half of this year, but
this was offset by the strong performance of Onward Kashiyama, so the group’s overall net sales for the firsthalf were up year on year.

FY02/23 1H: Results Net Sales by Channel◼ Net sales at physical stores total (department stores, shopping centers and other) increased by 12% YoY(19% increase on a like-for-like store basis, excluding closed stores).
◼ E-commerce sales increased by 7% YoY. The e-commerce ratio and the directly managed e-commerce ratio
remained at a high level at 30% and 86%, respectively.

(Million yen)

Copyright
LTD.
CO., LTD.
HOLDINGS CO.,ONWARD HOLDINGS© ONWARD
Copyright ©

Shopping
Centers andOtherPhysicalStores Total

Directly
Managed ECommerce

Other ECommerce
Platforms

E-Commerce
Total

Total Sales

E-Commerce
Ratio

28.7%

87.5%

1

(billion yen)
Onward Kashiyama

17,95014,891

32,841

11,5601,654

13,21446,0552% of sales

39.0%

32.3%

71.3%

25.1%

3.6%

28.7%

100.0%

YoY

3

Directly
Managed ECommerce
Ratio

Department
Stores

+16.4%+13.8%+15.2%-0.7%+32.7%+2.5%+11.3%

-2.4%

-2.8%

4

Eight Domestic
Subsidiaries Using ECommerce*

4,931

11,121

16,052

6,517

1,243

7,760

23,812

32.6%

84.0%

5

Total Domestic
Subsidiaries Using ECommerce

22,881

26,012

48,89318,077

2,897

20,974

69,867

30.0%

86.2%

6

% of sales

32.7%

37.2%

70.0%

25.9%

4.1%

30.0%

100.0%

7

YoY+14.1%+10.8%+12.3%+4.8%+20.2%+6.7%+10.6%

-1.1%

-1.5%

*Note: Total of eight domestic subsidiaries using e-commerce(Island, Tiaclasse, Onward Personal Style, Chacott, Creative Yoko, Yamato, Intimates, KOKOBUY)

9Page 9 shows first-half net sales by channel.
With the effects of the pandemic gradually easing in the first half, it has become clear that physical store
sales are recovering. Sales of physical stores total, which combine sales for department stores and those for
shopping centers and other, were up 12%.
The bottom row of the table shows the year-on-year change in sales by channel. Sales were up 14.1% atdepartment stores, and up 10.8% at shopping centers and other, resulting in physical store’s total sales
gaining 12.3%.
From these figures, excluding stores discontinued because of global business reforms, net sales grew 19%
on a like-for-like store basis, which paints a clear picture of recovery for the physical store channel.
Meanwhile, for e-commerce, combined net sales for directly managed e-commerce and other e-commerce
platforms rose 6.7%, which is just shy of 7%. As a result, the e-commerce ratio of group sales is unchanged
at around 30%. Even within the industry, we continue to maintain a very high directly managed e-commerce
ratio of 86%. Physical store sales are recovering, and although some e-commerce customers are flowing tophysical stores, the growth in e-commerce net sales maintained an upward trend.
This concludes my overview of first-half results. Next, I’d like to talk about our full-year performance
forecasts.

01
Financial Summary

1. FY02/23 1H Consolidated Results

Copyright © ONWARD HOLDINGS CO., LTD.

2. FY02/23 Full-year Forecast

10

FY02/23: Full-Year Forecast Revision◼ Although solid business performance is expected as a result of various sales initiatives, many
uncertainties remain, such as concerns about another resurgence in COVID-19 cases, foreignexchange rates, and raw material price trends. Therefore, the financial results forecasts for 3Q
onwards are unchanged, and the full-year forecast has been revised upward by adding the upswingof 1H to the initial full-year forecast.
◼ An increase in extraordinary losses is expected, assuming a loss on valuation of investment
securities due to stock market price fluctuations.

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

FY02/22
FY02/23
Initial Forecast
Revised Forecast(announced in Apr-2022) (A) (announced in Sep-2022) (B)

Change(B-A)

1 Net Sales

168,700

173,800+5,1002 Gross Profit

89,70094,000+4,300

3 SG&A Expenses

87,60089,900+2,3004 Operating Profit

2,100

4,100

+2,0005 Recurring Profit

2,050

4,300

+2,2506 Net Profit

1,700

2,200

+500

7 EBITDA*

7,080

9,080

+2,000© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

11

Note: EBITDA = operating profit + depreciation and amortization.

Please take a look at page 11.
Our full-year performance forecasts remain largely unchanged from the revised estimates released on
September 27. For net sales and operating profit, we have left our initial forecasts for the second-halfintact, but we have raised our full-year forecasts by adding on the respective first-half overshoots.
Our estimates are conservative because there are various factors at play that are difficult to predict, such as
the likelihood of an eighth wave of COVID-19 infections in Japan, foreign exchange rates, and sharp gains in
raw material and energy prices. At the same time, we believe we must factor in additional extraordinary
losses in the second half in connection with valuation losses on investment securities due to stock market
volatility. We are therefore cautiously forecasting higher extraordinary losses.
To sum up, compared to our initial forecasts, we have raised our net sales forecast by ¥5.1 billion, operating
profit by ¥2.0 billion, and profit attributable to owners of the parent by ¥500 million.

FY02/23: Full-Year Forecast (YoY)◼ Net sales are forecast to increase by 5.3 billion yen YoY.
◼ Operating profit is expected to improve by 5.2 billion yen YoY to 4.1 billion yen.
◼ Net profit is forecast to decline YoY due to a large gain from sales of non-current assets in
FY02/22.
◼ EBITDA is forecast to increase by 5.2 billion yen to 9.1 billion yen.

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

FY02/22

FY02/23

Results (A)Revised Forecast(announced in Sep-2022) (B)

Change(B-A)

1 Net Sales

168,453

173,800+5,347+3.2%

2 Gross Profit

87,612

94,000+6,388+7.3%

3 SG&A Expenses

88,69189,900+1,209+1.4%

4 Operating Profit-1,0794,100+5,1795 Recurring Profit

507

4,300

+3,793748.1%

6 Net Profit

8,566

2,200

-6,366-74.3％

7 EBITDA*

3,915

9,080

+5,165+131.9％© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

12% of Change(B/A)

Note: EBITDA = operating profit + depreciation and amortization.

We are also forecasting EBITDA of at least ¥9.0 billion.
This concludes my discussion of our full-year performance forecasts.

02
Overview of Group Management
1.

Results of Global Business Reforms

2.

Apparel Business Strategy(1)Promote OMO Strategy(2)Expand D2C Brands

Copyright © ONWARD HOLDINGS CO., LTD.

(3)Promote Product Strategy, Including
Customized Products© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

13
13

3.

Lifestyle Business Strategy

4.

Promotion of Sustainable Management

5.

Promotion of Work Style Design

6.

Rebuilding of Digital Platform

Results of Global Business Reforms(October 2019–August 2022)◼ Global business reforms had the effect of improving operating profit by approximately

21.0 billion yen.
▍Impact on net sales

Global Business Reforms(Total for October 2019–August 2022)(Main content)

Withdrawal from unprofitablebusinesses
Overseas- South Korean business (February 2020)-40.0 billion
yen-80.0 billion
yen-40.0 billion- Italian business (December 2020–March

Overseas

yen

2021)

Domestic- Guam hotel business (March 2022), other▍Positive impact on operating profit
Copyright © ONWARD HOLDINGS CO., LTD.

(Total for October 2019–August 2022)

Closure/consolidation ofDomestic unprofitable stores-Closed/consolidated approximately 1,800
stores (October 2019–August 2022)+8.0
billion yen+21.0 billion
yen

+13.0
billion yen

海外Overseas
国内
Domestic

14

Next, let’s look at the overview of the group’s management, starting on page 14.
To begin with, over the past three years we have carried out global business reforms, the results of which
are presented on pages 14 and 15. On the left side of the page you can see the key initiatives in both ouroverseas and domestic operations.
In overseas markets, we withdrew from unprofitable businesses. We divested three main businesses: theSouth Korean business in February 2020, the Italian business from December 2020 through March 2021,
and then the Guam hotel business in March of this year.
In our domestic operations, over a period of three years we gradually discontinued or consolidated around
1,800 unprofitable stores.
This sums up our global business reforms.
The right side of the page shows the results: net sales decreased by ¥40 billion overseas and by ¥40 billion
in Japan, for a total decrease of ¥80 billion. This corresponds to roughly 30% of the level of net sales before
the implementation of the global business reforms, so net sales right now are only at 70% of the level
before the structural reforms. However, we estimate a cumulative improvement of ¥21 billion in operating
profitability, which breaks down to ¥8 billion overseas and ¥13 billion in Japan.

Consolidated Results During Global Business Reforms Period(October 2019–August 2022)◼ Net sales fell sharply in FY02/21 due to business reforms and the COVID-19 pandemic,

but bottomed in FY02/22 and is on a recovery trend.
◼ Operating profit/loss also began a sharp recovery trend in FY02/22 after posting a large

operating loss in FY02/21 due to business reforms and the COVID-19 pandemic. In
FY02/23, operating profit is expected to recover to the level as in FY02/19.
▍Net Sales▍Operating Profit(Billion yen)(Billion yen)

300,000
300

250,000250

1010,000

240.652
240,652

248,233
248.233
5 5,000

4.461
4,461

4.100
4,100
-3.061△3,061

0200,000200

175.899
175,899

168,453
168.453

173.800
173,800-1.079△1,079

0-5 5,000△

150,000
150
Copyright © ONWARD HOLDINGS CO., LTD.

△
10,000-10
100,000100△ 15,000-15△
20,000-20

50,00050-20.173△
20,173-25△ 25,000

0FY02/19

FY02/20

FY02/21

FY02/22© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

FY02/23(Forecast)

2019年
FY02/192月期

2020年
FY02/20
2月期

2021年
FY02/212月期

2022年
FY02/22 2023年
FY02/23
2月期
2月期（予想）(Forecast)

15

The next page shows trends in business performance as a result of the reforms.
First, let’s look at net sales, which are shown on the left. We began the global business reforms in thesecond half of the fiscal year ended February 2020, and as a result of implementing various initiatives fromthat point in time onwards, net sales decreased by some 30%, as I mentioned just a moment ago, so for thisfiscal year we are forecasting net sales in the range of ¥170 billion. Net sales last fiscal year came to justunder ¥170 billion, partly because of the impacts of COVID-19, so with that level as a bottom, we intend to
go on the counter-offensive and target a return to net sales growth this fiscal year.
From this fiscal year onwards, growth strategies geared towards boosting net sales through a variety ofmeasures will be the most pressing issue for the company going forward.
Turning to operating profitability, we booked full-year operating profit of ¥4.5 billion in the fiscal year ended
February 2019. In the following fiscal year that ended February 2020, we started undertaking global
business reforms and recorded an operating loss of about ¥3 billion. Then in the fiscal year ended February
2021 we bore the full effects of the COVID-19 pandemic and we suffered a heavy operating loss of around¥20 billion. In the fiscal year ended February 2022 we fell short of a return to operating profitability partly
due to the impact of the sixth wave of COVID-19 infections in Japan, but we managed to narrow theoperating loss to about ¥1 billion, so for this fiscal year we expect operating profit to rebound to a level
mostly on par with the fiscal year ended February 2019.
As a result of implementing global business reforms, we have pared back our stores to only those turning a
profit to create a leaner and more robust business structure. As such, I believe we can take operating profit
higher in the future by first steadily boosting existing store sales with a whole host of measures.
As for new store openings, we have so far been closing or consolidating stores more than anything else, but
going forward we will turn our attention to opening new stores in Japan and overseas by closely examining
high-quality properties.

02
Overview of Group Management
1. Results of Global Business Reforms
2. Apparel Business Strategy(1)Promote OMO Strategy(2)Expand D2C Brands(3)Promote Product Strategy, Including
Customized Products
Copyright
LTD.
CO., LTD.
HOLDINGS CO.,ONWARD HOLDINGS© ONWARD
Copyright ©

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

16
16

4. Promotion of Sustainable Management

5. Promotion of Work Style Design
6. Rebuilding of Digital Platform

(1) Promote OMO Strategy◼ Number of Onward Kashiyama stores implementing its “Click & Try” OMO service increased to 330◼ Net sales of existing stores offering the OMO service in 1H recovered to 95.9% of FY02/20 1H level, 21pp higher

than stores that don’t offer the service (74.9%)◼ Number of items reserved for “Click & Try” doubled from 1H monthly average of 9,000 to 18,500 in September 2022

▍Trends in number of Click & Try-implemented stores
Percentage of stores
implementing service

34.8％

41.0％

22.7％
200
stores▍Monthly items reserved for Click & Try service

20,000330

290

storesstores

18,00016,00014,00012,000End-February 2022

End-May 2022

End-September 2022

Implemented at over 40% of Onward Kashiyama
stores; to become available at more stores going
forward

Copyright © ONWARD HOLDINGS CO., LTD.

▍Net sales: FY02/23 1H versus FY02/20 1H

95.9％
74.9％
Stores not
implementing
Click & Try
service

10,000
8,000
6,000
4,000
2,000
0

+21pp

Storesimplementing
Click & Try
service

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Use of Click & Try service increased every month(except in July and August, which are discount sales
months)Click & Try service boosted net sales© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

17

Next, pages 17 and onwards present an overview of our growth strategies.
First, let’s look at the strategy for the apparel business. We believe the most pivotal strategy is to pursue an
OMO strategy that fuses together online and offline spaces.
Regarding this strategy, page 18 provides some information about the “Click & Try” service. This service
allows customers to have almost all of Onward Kashiyama’s products, regardless of brand, that are available
for sale on the Onward group’s online fashion shopping site ONWARD CROSSET, delivered to any store to betried on and purchased.
The service has been implemented out from spring last year, and as of the end of September this year, it
had been implemented in 330 Onward Kashiyama stores, which equates to 41% of all stores. Familiarity ofthe service and customer recognition has gradually increased, while productivity of store staff members is
improving because they are now used to the service and can more readily recommend it to customers. In
the first half of this fiscal year, there was a difference of 21 percentage points between “Click & Try”
service-implemented stores and non-implemented stores when comparing sales figures to the first half offiscal year 2019. In other words, this service is contributing to brisk sales growth.
The right-hand side of page 17 shows the monthly number of items reserved for a try-on under the “Click &Try” service. From March through August there was some variation due to sales periods and the like, but
the monthly average in the first half was approximately 9,000 items. In the second half, the number of
items reserved in September sharply rose to 18,500, which is more than double the monthly average in thefirst half. This indicates that customers are now firmly embracing the service.

(1) Promote OMO Strategy“Click & Try” service offers a new shopping format
Overview of “Click & Try” Service
An ordering service that allows customers, via the Onward
Group’s online store ONWARD CROSSET, to have delivered
almost all of Onward Kashiyama’s products, regardless of brand,
to any store to be tried on and purchased.

◼ Customer feedback

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Copyright ©

It was great to check the fit,material, and color of a
product I liked online. I will use
the service more from now on.

I like being able to try out sizes and items only
sold online, and enjoy the process of choosing
clothes that really suit me with sales staff I’m
familiar with.

◼ Store stylist (sales staff) feedback

The scope of customer service
increased, because we began to haveinquiries about brands that we don’t
display instore as well.

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

18
18

I can try on clothes even when I’m
pushed for time, because I make areservation to visit a store. It’s also goodthat cancelling is no problem.

I noticed that customers were reallypleased with the service. It inspired me
to provide an even better service thatmakes customers happy.

Copyright © ONWARD HOLDINGS CO., LTD.

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

As a result, net sales at like-for-like stores (total) in September were up 24.2% year on year, and up 17.8%
for all stores (total). In particular, physical store net sales on a like-for-like basis rose 33.9% year on year, orapproximately 34%. I think this figure strongly reflects a boost in sales from the use of Onward Kashiyama’s“Click & Try” service. E-commerce sales growth also remained in double-digit territory in the month of
September. I think the September sales results mark a solid start to the second-half sales battle.

(2) Expand D2C Brands【 Onward Kashiyama 】◼ Created long-selling hit products like “Saiai jogging pants”

and “Georgette Jersey Jilet,” with net sales doubling YoY.
◼ Brisk sales of “steppi,” a range of high-performance shoes

with knitted uppers.
◼ Full-scale launch of menswear and unisex range to prepare

for further business expansion.
Copyright © ONWARD HOLDINGS CO., LTD.

Saiai jogging pants◼ Began social media marketing in collaboration with leading

influencers.

Sales
(YoY)

+109.4%(Doubled)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

19

Next, we’ll look at page 19.
For some time now we have been focusing on expanding new brands and direct-to-consumer (D2C) brands
mainly through online channels. Two years ago, we launched the UNFILO and uncrave brands.
First-half net sales increased more than twofold year on year for UNFILO,

(2) Expand D2C Brands【 Onward Kashiyama 】◼ Sales of sets made from select materials, and clothing items

including cut and sew items and blouses have been brisk.
◼ The brand has recorded a sharp increase in the number of

Copyright © ONWARD HOLDINGS CO., LTD.

followers and attracted followers with high engagement thanks
to influencer marketing

Sales
(YoY)

+25.7%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

20

and were up 26% for uncrave.
Even though the core focus of these brands is the online space, they have continued to grow at a very
promising pace mainly because we have endeavored to create face-to-face customer touchpoints throughpopup OMO stores within physical stores, and we have also steadily developed hit products.

(3) Promote Product Strategy, Including Customized Products◼ Developed advanced business model that connects stores with directly-managed

smart factories online to deliver quality, made-to-order suits in a week at the earliest▍Kashiyama Dalian Co., Ltd.
◼ Lean manufacturing as a result of thoroughreforms of all processes◼ Efficient logistics structure◼ Environment-friendly and accommodates

Copyright © ONWARD HOLDINGS CO., LTD.

diverse work styles▍Kashiyama Saga Co., Ltd.
◼ The Group’s flagship factory in Japan for

production of value-added women’s apparel◼ Flexible capability from small-lot, multiple

variety orders to large lots, delivered with shortlead times

Automated fabric management

Management using RFID
and hanger system

Fast, neat, and careful sewingof customized orders© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

21

From page 21 onwards you can read about how we are pressing ahead with a product strategy that includes
creation and is centered on customized products.
We think it is one of the strategies that will require a lot of effort going forward. We have establisheddirectly operated smart factories in Dalian in China, and in Saga Prefecture in Japan, and we have alreadydeveloped a sophisticated business model under which we can manufacture and deliver high-quality
bespoke products to the customer in as little as one week. These factories are mainly being used for the“KASHIYAMA the Smart Tailor” brand, but we have plans to extend the use of their production platforms tovarious other brands in the group, including the mainstay brands of Onward Kashiyama.
Also, there is currently burgeoning demand for high-quality manufacturing plants in Japan given the recent
depreciation of the yen, so the Saga plant has the potential to become a major strategic asset for us in the
future. Considering that the logistical risks are quite low and there are few country risks, such as foreignexchange risks, we hope to make full utilization of our domestic production sites.

(3) Promote Product Strategy, Including Customized Products

KASHIYAMA 【 Onward Personal Style Co., Ltd. 】◼ New customers increased on sales growth of products for

specific occasions, such as job hunting.
◼ For women’s apparel, the EASY line has been popular,

and together with customized shoes, sales have grown
Sales
(YoY)

+

22.5%

GOTAIRIKU

Personal Order,【 Onward Kashiyama】

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Pattern-made suits soldmade to order suits【Onward Kashiyama】

well at Gotairiku, mainly
sold through department
store channels, whose
sales grew sharply.
Sales
(YoY)

+

27.0%

◼ Average spend per item

increased sharply due
to growing demand forhigher-priced made-toorder suits.
Sales
(YoY)

+

15.0%

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

22

Information about our mainstay brands starts on page 22.
In the heavy apparel category, demand rose in the first half for the KASHIYAMA and Gotairiku brands, andeven in the expensive tailor-made suits zone of HENRY POOLE.
People are saying that the suits market is struggling, but we still see firm demand for high-quality pieces. In
fact, net sales increased by more than 22% for KASHIYAMA, by 27% for Gotairiku, and by 15% for Onward
Personal Order, made to order suits.

(3) Promote Product Strategy Including Customized Products
ICB 【Onward Kashiyama】

BEIGE, 【Onward Kashiyama】◼ New range of high-performance◼ Brand marked its 10-year

suits for active lifestyles drove
sales◼ Introduced “Made to Measure”

ladies’ made to order suits

anniversary; sales of jackets andblouses, the brand’s strong points,
grew mainly at physical stores◼ Held sales events for customized

sets
Sales

+

(YoY)

7.0%

Nijyusanku 【Onward Kashiyama】

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Spend per item increased due

to an expanded product mix tomeet increased demand foritems worn by commuters◼ Stepped up dissemination of

Sales
(YoY)

+

19.3%

Jiyuku 【Onward Kashiyama】◼ Double-digit sales growth on

brisk sales at list price as aresult of updating product image
to take the brand upmarket“staff coordination” information
by talented sales staff, which isthe brand’s strength
Sales
(YoY)

+

22.3%

Sales
(YoY)

+

11.9%

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

23

Our core ladies’ brands are shown on page 23.
This is also an area in which we are leveraging our customization platform to bolster our product offerings.
First-half net sales were up a brisk 22% for Nijyusanku, 19% for BEIGE, 12% for Jiyuku, and 7% for ICB. This
recovery in the core brands is also sharply boosting group performance. The solid performance gained
further momentum in September, and with cooler weather arriving we expect to see stronger demand forwoven heavy apparel, an area in which we excel.

02
Overview of Group Management
1. Results of Global Business Reforms
2. Apparel Business Strategy(1)Promote OMO Strategy(2)Expand D2C Brands(3)Promote Product Strategy, Including
Customized Products
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3. Lifestyle Business Strategy© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

25
24

4. Promotion of Sustainable Management

5. Promotion of Work Style Design
6. Rebuilding of Digital Platform

Chacott◼ Brisk sales of collaboration products and new products

in mainstay ballet/fitness supplies.
◼ Chacott Balance offers a range of clothing for yoga,

Pilates, and daily life.

Sales
(YoY)

+6.1%

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Chacott Cosmetics, originally a stage make-up brand, in

addition to powders and base make-up items for dailyuse, has expanded its variation and color items.
◼ Chacott’s Daikanyama Tokyo Main Store offers photoshoot services by professional make-up artists andphotographers for customers wearing ballet costumes
to create original photo art.

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

25

Details about our Lifestyle Business strategy is provided starting from page 25.
We sustained strong sales and profit growth in this domain even during the pandemic, and sales continued
to expand briskly during the first half of this fiscal year as well: net sales rose approximately 6% for Chacott,Creative Yoko

◼ Sales of pet products and comfort goods continued to increase◼ Launched Pet Paradise Cat range of products for cats
◼ Began selling MOLANG (a trending anime character)

Copyright © ONWARD HOLDINGS CO., LTD.

merchandise at Mother Garden online store◼ Opened pop-up store “Shirotan Funwari Store” at Ichiban Plaza,

Tokyo Character Street at Tokyo Station Ichibangai◼ Promotes character merchandise licensing and pet products

wholesale businesses in overseas markets© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

26

15% for Creative Yoko,

Sales
(YoY)

+15.2%Yamato◼ Strong sales growth continued, driven by robust

bridal demand.
◼ In April 2022, launched new social gift service

Copyright © ONWARD HOLDINGS CO., LTD.

“dozo – Have fun with gifts” for sending gifts via
social media◼ Pop-up shop opened for a limited period at

CHOOSEBASE SHIBUYA, a media type OMO
store, and at the 5F stationery and variety goods
area of Ginza Loft

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

27

9% for Yamato,

Sales
(YoY)

+8.9%

KOKOBUY◼ In addition to mainstay hair wax, sales of dry

shampoo, a seasonal product, grew steadily due
to high utilization.
Sales
(YoY)

+22.9%

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Accelerated rollout of make-up products with thelaunch of “The Product Color Control”, madefrom 100% natural ingredients.
◼ In FY02/23, started full-scale opening of storesin major e-commerce malls other than our own
EC sites. Also began cross-border e-commerce© Copyright 2007-2015
ONWARDsales
HOLDINGS
CO.,LTD.in Asia.
and will promote
expansion28

and 23% for KOKOBUY organic hair care products.
I believe this is a result of each group company’s proactive efforts to expand distribution, including ecommerce, and diversify product offerings.

02
Overview of Group Management
1. Results of Global Business Reforms
2. Apparel Business Strategy(1)Promote OMO Strategy(2)Expand D2C Brands(3)Promote Product Strategy, Including
Customized Products
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HOLDINGS CO.,ONWARD HOLDINGS© ONWARD
Copyright ©

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

30
29

4. Promotion of Sustainable Management

5. Promotion of Work Style Design
6. Rebuilding of Digital Platform

Promote Sustainable Management

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Based on the mission statement, “Enriching and adding color to people’s lives while caring for theplanet,” the Onward Group will continue to practice sustainable management that pursues
coexistence with the global environment as an important theme that forms the foundation of its
corporate activities.

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

30

Page 30 provides some information about our sustainable management activities and Work Style Design
project.

Regarding the Onward group’s sustainable management, as you can see in the triangular diagram on page30, our primary consideration is to first eliminate wasteful production, but at the same time, work together
with customers to recycle and reuse the products we manufacture. Therefore, we intend to be moretransparent about the traceability of the manufacturing process. We are pursuing a style of sustainable
management based on these three pillars.

FY02/23 1H: TOPICS◼ Implemented initiatives for the realization of a low-carbon, recycling-basedsociety.
Expanded Onward Green
Campaign, which aims for arecycling-based economy

Changed KASHIYAMA suitdelivery packaging fromcardboard boxes to paper bags

• In FY02/23 1H, collected 351,109
apparel items (+6% YoY)

• Pack-runner compression packaging
used to increase delivery loading
efficiency• Increase the number of collected items
by devising new schemes• Use of environment-friendly, compact
paper packaging for delivery

Copyright © ONWARD HOLDINGS CO., LTD.

• Of the items collected so far, 82% has
been recycled and 18% reused.

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

31

On pages 31 and 32, you can see four key topics that we tackled in the first half.
The first one is the expansion of the Onward Green Campaign, which is now in its 13 th year. In the first half
we collected to reuse more than 350,000 Onward products, 6% more than in the same period last fiscal
year. Even though this initiative has become quite well entrenched among customers, the collection rate isstill less than 10%, so we are currently considering how best to enhance the Onward Green Campaign
system so that we can set our sights on increasing the collection rate to 20% or 30% from next fiscal year.
You can also see on the page here that we started using paper bags instead of cardboard boxes when
packaging and delivering “KASHIYAMA the Smart Tailor” products.

FY02/23 1H: TOPICS◼ Implemented initiatives for the realization of a low-carbon, recycling-basedsociety.
Reduce the number ofsamples made with remotemeasuring system• Introduced 3D garment-fitting
simulation system to achieve efficient
sample making• Workshop that offers clothing repair andalteration service• Opened to help reduce the volume ofclothing waste and to express theCompany’s wish that customers can wear
their favorite items in comfort for a longtime

Copyright © ONWARD HOLDINGS CO., LTD.

• Attained remote measuring thatcovers process from sizerecommendations to order collection
to minimize losses from sizing errors
using optimal size recommendation
feature“Shibaura Repair Workshop”
opens for alteration service tominimize clothing waste© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

32

On page 32 you can see an initiative undertaken by our product planning departments to reduce thenumber of samples they make with the introduction of an online size measurement system.

Also, in the first half we launched a service to help people repair or remake garments by setting up a repair
workshop in the Shibaura district of Tokyo with the aim of minimizing the amount of clothing that is
discarded.

02
Overview of Group Management
1. Results of Global Business Reforms
2. Apparel Business Strategy(1) Promote OMO Strategy(2) Expand D2C Brands(3) Promote Product Strategy, Including
Customized Products
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Copyright ©

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

34
33

4. Promotion of Sustainable Management
5. Promotion of Work Style Design
6. Rebuilding of Digital Platforms

Promotion of Work Style Design◼ Promote “Work Style Design“, a reform project with the aim of increasing
productivity by improving operational efficiency and achieving work-life balance.
▍Major Initiatives“Kaeru Kaigi“ Meetings• Each team of co-workers holds a meeting once aweek to consider "what they should do to improvetheir work styles”.

Copyright © ONWARD HOLDINGS CO., LTD.

• All members, through proactive and repeated trial
and error, don’t stop at just changing their work
styles, but also aim to realize their “ideal state”
beyond that.

Manager Training and InformationSharing Sessions• As a first step toward designing their work styles,
managers continuously receive training conductedby outside consultants in order to raise theirawareness.
• Directors and executive officers also participate in
information- sharing sessions where the results of
the “Kaeru Kaigi“ meetings are reported, and to
discuss future work styles beyond their positions.

An actual “Kaeru Kaigi“ meeting - Post-it notes make it easier to convey things that
may be difficult to say out loud.

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

"Information Sharing meeting on Work Style Design" held in February 2021.

35
34Page 34 presents an overview and key initiatives of the Work Style Design project, which as the namesuggests, is the group’s work style reform project.

Through the Work Style Design project, we are endeavoring to improve employee satisfaction by achieving
greater business efficiency and work-life balance.
We also hope to raise productivity. We have repeatedly held “Kaeru Kaigi” meetings for employees todiscuss work style reforms, as well as held manager training and information-sharing sessions.

Promotion of Work Style Design◼ Promote "Work Style Design“, a reform project with the aim of increasing productivity by
improving operational efficiency and achieving work-life balance.

▍Overtime Hours▍Number of Paid Leave
Days Taken

17.7 hours▍% of Male Employees
Taking Paternity Leave

Approx. -Dayrise achieved

6

About Double the
National Average*

124.9 days

27.3%

62%

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Copyright ©

Down

FY02/19
Results
2018年度実績

6.8 hours

119.0 days

FY02/22
Results
2021年度実績

FY02/19
Results
2018年度実績

7.7%

FY02/22
Results
2021年度実績

2018年度実績
FY02/19
Results

2021年度実績
FY02/22
Results*Comparison between FY02/22 and the previous year (FY02/19) when the “Work Style Design” program started.
*Those subject to the "Work Style Design" program (in-house employees only).
*The national average rate of male employees taking childcare leave in FY2021 was 13.97%.

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

36
35

On page 35 you can see the results of the project in fiscal 2021 compared to fiscal 2018, the previous year
when the Work Style Design project started.

Overtime hours were down 62%, the number of paid leave days being used increased by roughly six days,
and the percentage of male employees taking childcare leave rose sharply to about double the national
average.
We will continue to make every effort going forward to try and reach a paternity leave ratio of 100%.

02
Overview of Group Management
1. Results of Global Business Reforms
2. Apparel Business Strategy(1) Promote OMO Strategy(2) Expand D2C Brands(3) Promote Product Strategy, Including
Customized Products
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CO., LTD.
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Copyright ©

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

37
36

4. Promotion of Sustainable Management
5. Promotion of Work Style Design
6. Rebuilding of Digital Platforms

Rebuilding of Digital Platforms◼ Implementing the "SMILE Project" to rebuild our digital platform aiming toachieve the five strategies of "ONWARD VISION 2030“.
▍Objectives of the "SMILE Project"◼ “Become product-oriented and customer-centric"◼ "Reform manufacturing, centered on PLM"
◼ “Enhance business management” (both brand-focused and store-focused management)

Customers (Individual/Corporate)

Apparel Segment

Copyright © ONWARD HOLDINGS CO., LTD.

Establishment of a customer-oriented
sales platform

2

Establishment of a SCM platform toachieve speed, cost, and traceability

3Management platform reform to support
the group (Business Management and
Finance, Organization and Human
Resources)4

Flexible system architecture

Lifestyle Segment

Product Planning, Production, and Logistics Platform
Digital Platform (Structure)

1

Sales Platform (ONWARD CROSSET, OMO Store)

Marketing Platform (Onward Members)

Accounting Management and Finance Platform

Organization and Human Resources Platform

Onward HD© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
38
37

Lastly, in spring last year we unveiled the Onward Vision 2030, our medium-to-long term management
vision targeting fiscal year 2030. In the first half of this fiscal year, we started to completely overhaul our
backbone information system in order to give shape to that vision. We therefore kicked off the “SMILE
Project” as an initiative to create an information system in order to bring smiles to the faces of ourcustomers, our employees, and the world. During the project’s first stage, we will incorporate as many
elements as possible for a launch in fiscal 2024, one year and a half from now, and then continue to evolvethe system through to fiscal 2030.
The objectives of the “SMILE Project” are listed near the middle of page 37. One of those is to reflect ourbrand philosophy, or mission, which basically calls for the type of brand business that provides society withcreations as a product-oriented organization. Another is a customer-centric business methodology thatremains finely attuned to the needs of customers and provides them with familiar products. Because our
purpose and mission differ depending on the brand, we intend to switch to a system that can give shape toboth. Our existing system is based on a product-oriented brand business, so building a customer-centricbusiness model will prove somewhat challenging, which is why we hope to develop a system under which
we can make proper use of both of them.
As for manufacturing, this is something we cannot achieve on our own. Sharing all kinds of information withvarious manufacturing partners, trading companies, and manufacturers will help cut down lead times,
improve traceability, reduce production costs, and eliminate wasteful production. By implementing productlifecycle management, or PLM, we are considering the integration of a PLM system into this “SMILE
Project”.
Turning now to the enhancement of business management, up until now our business management had
been centered on brands. We also carried out profit and loss management for each brand. However, as I
mentioned earlier, as we increase the number of stores that carry multiple brands under an OMO format, in
addition to brand-focused business management, we want to develop an information system that also
incorporates the concept of store-focused management so that we can easily gauge how stores that handle
multiple brands are being managed. As this kind of system does not really exist, we have to build our own
from scratch, which will take quite some time, but first we will incorporate whatever we can into it in fiscal
2024, and then gradually develop it further after that.

03
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Financial Situation© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

39
38

Balance Sheet◼ Net assets increased to 81.6 billion yen, up 4.4 billion yen from the end of FY02/22.
◼ Shareholders’ equity ratio increased to 46.1％ billion yen, up 3.7 pp from the end of FY02/22.
◼ Current ratio increased to 115.5%, up 7.0 pp from the end of FY02/22, further improving management
stability.
▍Shareholders’ Equity Ratio▍Net Assets

46.1%

+4.4

81.6 billion yen
816

42.4%

+3.7 ppbillion yen

772 億円
77.2 billion
yen
End-FY02/22

End-1H FY02/23▍Current Ratio

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HOLDINGS CO.,ONWARD HOLDINGS© ONWARD
Copyright ©

115.5%
108.5%

End-FY02/22

End-1H FY02/23

End-FY02/22+7.0 ppEnd-1H FY02/23© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

40
39

Finally, our financial situation. Please take a look at page 39.
Net assets increased ¥4.4 billion from the end of the last fiscal year to ¥81.6 billion. As a result, over thesame period, the shareholders’ equity ratio rose 3.7 percentage points to 46.1%. Also, the current ratio
increased 7.0 percentage points to 115.5%. These indicators have recovered to pre-pandemic levels and wecurrently see no issues at all in terms of management safety and stability. We believe this is also an
achievement of our global business reforms.

EBITDA/Cash Flows/Capital Expenditures
2.8 28billion yen◼ EBITDA achieved a profit of 2.8 billion yen,

improved by 3.5 billion yen YoY. (Expected to
expand to 9.1 billion yen for the full year)+3.5
billion yen

EBITDA-700 m-7illion yen
FY02/22 1H

FY02/23 1H◼ Cash flows from operating activities amounted to 1.4 billion yen due to a return tothe black for operating profit and recurring profit.
Cash Flows◼ Cash flows from investing activities amounted to 5.9 billion yen due to the sale ofthe hotel business in Guam.

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Free cash flow (operating cash flow + investing cash flow) amounted to 7.3

billion yen.

CapitalExpenditures◼ Capital expenditures were 1.9 billion yen, down 500 million yen YoY.
◼ Depreciation and amortization were 2.2 billion yen, down 100 million yen YoY.

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

41
40

Page 40 shows EBITDA, cash flows, and capex. EBITDA improved ¥3.5 billion year on year to return to theblack, finishing at ¥2.8 billion in the first half. We are forecasting full-year EBITDA of ¥9.1 billion.

As for cash flows, we recorded cash flows from operating activities of ¥1.4 billion and cash flows frominvesting activities of ¥5.9 billion, for a total free cash flow of ¥7.3 billion.
Capex declined ¥500 million from the same period last year to ¥1.9 billion. Depreciation declined ¥100
million to ¥2.2 billion. Our investments have been constrained somewhat by the COVID-19 pandemic, but
we will be transitioning to a growth strategy, so we intend to resume making appropriate investments,
including those that form part of the “SMILE Project” that I just discussed.

04
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HOLDINGS CO.,ONWARD HOLDINGS© ONWARD
Copyright ©

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

42
41

A data book section is provided for your reference starting on page 41.
That concludes my presentation.

FY02/23 1H: Consolidated Financial Results(Comparison to Initial Forecast)

FY02/23
Initial Forecast
1H

FY02/23
Results% of Sales

1H

Comparison to Initial Forecast% of Sales

Change% of Change

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

1

Net Sales

77,000-82,166-+5,166

+6.7%

-

2

Gross Profit

40,50052.6%

44,73554.4%+4,235+10.5%+1.8％

3

SG&A Expenses

42,30054.9%

44,54254.2%+2,242

+5.3%

-0.7％

4

Operating Profit-1,800

-

193

0.2%

+1,993

5

Recurring Profit-1,750

-

654

0.8%

+2,404

6

Net Profit-1,250

-

476

0.6%

+1,726

7

EBITDA*

650

0.8%

2,838

3.5％

+2,188336.6%+2.7％

Note: EBITDA = operating profit + depreciation and amortization.

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

43
42% of Sales
Change

FY02/23 1H: Net Sales & Operating Profit by Segment(Comparison to Initial Forecast)
FY02/23 1H
Initial Forecast(Million yen)

1

2

3

4

Copyright © ONWARD HOLDINGS CO., LTD.

5

6

7

ApparelLifestyleDomestic Total

ApparelLifestyleOverseas Total

Consolidated Total

FY02/23 1H
Results

Change% of Initial Forecast

Net Sales

55,40659,704+4,298Operating
Profit-1,728484+2,212Net Sales

18,783

19,155

+372

+2.0%

Operating
Profit

1,370

1,484

+114

+8.3%

Net Sales

74,18978,859+4,670+6.3%

Operating
Profit

-358

1,968

+2,326Net Sales

6,270

6,771

+501

Operating
Profit

-839

-963

-124

Net Sales

932

962

+30

Operating
Profit

-192

-169

+23

Net Sales

7,202

7,733

+531

Operating
Profit-1,031-1,132-101

Net Sales

77,00082,166+5,166

Operating
Profit-1,800193+1,993* 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)© Copyright
ONWARDHOLDINGS
CO.,LTD.
Note: 2007-2015
The segment breakdown
is calculatedusing simple
sums of all companies. Consolidated totals are after eliminating intergroup transactions.

44
43

+7.8%

+8.0%

+3.2%

+7.4%

+6.7%

FY02/23 1H: Net Sales & Operating Profit by Company (YoY)

1

Onward Kashiyama +HD

2Onward Trading

3

Island4Chacott

5

Creative Yoko

6

YamatoCopyright © ONWARD HOLDINGS CO., LTD.

(Excl. Onward Kashiyama + HD)

8

Europe9America

10

Asia

11

Guam Resort

46,055+4,663Operating Profit-3,238332+3,570Net Sales

7,578

6,865

-713

-9.4%

Operating Profit

1,067

523

-544

-51.0%Net Sales

2,813

2,970

+157

+5.6%

Operating Profit

-124

22

+146

Net Sales

4,445

4,714

+269

+6.1%

283

342

+59

+20.8%

2,223

2,562

+339

+15.2%

68

108

+40

+58.8%

9,282

10,106

+824

+8.9%

548

703

+155

+28.3%Net Sales

32,35132,804

+453

+1.4％

Operating Profit

1,098

1,636

+538

+49.0％Net Sales

8,822

4,244

-4,578-51.9%

-47

-514

-467

Operating Profit

Operating Profit

Operating Profit

Operating Profit
Net Sales

297

587

+290

Operating Profit

-231

-251

-20

Net Sales

2,211

2,730

+519

-78

-211

-133

Operating Profit
Net Sales

150

172

+22

Operating Profit

-312

-156

+156

11,4807,733-3,747- 668- 1,132-464

Net Sales

80,78582,166+1,381

Operating Profit- 3,294

193+3,487

Net Sales

12

Overseas Subtotal

13

Consolidated Total

Operating Profit

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

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

45
44

YoY

41,392Net Sales

Domestic Subtotal

ChangeNet Sales

Net Sales

7

FY02/231H

FY02/22
1H(Million yen)

+11.3%+97.6%+23.5%+14.7%-32.6%+1.7%

FY02/23 1H: Net Sales & Operating Profit by Company(Comparison to Initial Forecast)
FY02/23 1H
Initial Forecast(Million yen)

1

Onward Kashiyama + HD

2

Onward Trading

3

Island4Chacott

5

Creative Yoko

6

Yamato41,30046,055+4,755

Operating Profit-1,955332+2,287

Net Sales

7,190

6,865

-325

-4.5%

898

523

-375

-41.8%

2,973

2,970

-3

-0.1%

-94

22

+116

4,680

4,714

+34

0.7%

289

342

+53

+18.3%

2,343

2,562

+219

+9.3%

73

108

+35

+47.9%

9,755

10,106

+351

+3.6%

557

703

+146

+26.2%Net Sales

32,88932,804-85-0.3％

Operating Profit

1,597

1,636

+39

+2.4％

Net Sales

3,969

4,244

+275

+6.9%

Operating Profit

-525

-514

+11

Operating Profit

Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit

Copyright © ONWARD HOLDINGS CO., LTD.

Net Sales

Domestic Subtotal

8

Europe9America

10

Asia

11

Guam Resort(Excl. Onward Kashiyama + HD)

12

Overseas Subtotal

13

Consolidated Total

Operating Profit

Net Sales

543

587

+44

Operating Profit

-224

-251

-27

Net Sales

2,544

2,730

+186

Operating Profit

-164

-211

-47

Net Sales

146

172

+26

Operating Profit

-118

-156

-38

Net Sales

7,202

7,733

+531

Operating Profit-1,031-1,132-101

Net Sales

77,00082,166+5,166

Operating Profit-1,800193+1,993

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

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

46
45% of Initial
Forecast

ChangeNet Sales

Net Sales

7

FY02/23 1H
Results+11.5%

+8.1%

+7.3%

+17.8%

+7.4%

+6.7%

FY02/23 Full Year: Outlook by Segment (Comparison to Initial
Forecast)(Million yen)

2

4

5

128,070+7,0253,614+2,542Net Sales

38,58339,068+485

Operating Profit

2,924

2,868

-56

159,628

167,138+7,510+2,486

LifestyleDomestic Total
Operating Profit

3,996

6,482

Net Sales

16,296

16,319+23

Operating Profit-416-1,022-606

Net Sales

2,179

2,214

+35

Operating Profit

-295

-146

+149

18,475

18,533+58-711-1,168-457

168,700

173,800+5,100

2,100

4,100

+2,000ApparelLifestyleOverseas Total

Copyright © ONWARD HOLDINGS CO., LTD.

Net Sales

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 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)
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.

47
46

(B-A)

1,072

Operating Profit

7(announced in Sep-2022) (B)

121,045

Net Sales
6(announced in Apr-2022) (A)ChangeApparelNet Sales3

FY02/23
Revised Forecast

Operating Profit

Net Sales1

FY02/23
Initial Forecast

FY02/23 Full Year: Outlook by Segment (YoY)FY02/22
Results (A)(Million yen)

2

3

4

5

Copyright © ONWARD HOLDINGS CO., LTD.

6

7

Change% of Change

(B-A)

(B/A)

120,516

128,070+7,554-1,254

3,614+4,868+6.3％

Net Sales

37,90539,068+1,163+3.1％

Operating Profit

2,598

2,868

+270

+10.4％

ApparelLifestyleDomestic
Total

158,421167,138+8,717+5.5％

Operating Profit

1,344

6,482

+5,138+382.3％

Net Sales-8.5％

Net Sales

17,83816,319-1,519Operating Profit-679-1,022-343

Net Sales

1,750

2,214

+464

Operating Profit

-814

-146

+668

Apparel+26.5％

LifestyleOverseas
Total

Net Sales

19,58818,533-1,055

Operating Profit-1,493-1,168+325

Consolidated
Total

Net Sales

168,453

173,800+5,347-1,0794,100+5,179Operating 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 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)
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.

48
47

Revised Forecast(announced in Sep-2022) (B)Operating Profit

Net Sales1

FY02/23

-5.4％

+3.2％

FY02/23 Full Year: Outlook by Company (Comparison to Initial
Forecast)
FY02/23

FY02/23

Initial Forecast

Revised Forecast(announced in Apr-2022) (A)(announced in Sep-2022) (B)

91,406

98,914+7,50879

2,643+2,564

15,22014,625-595

Operating Profit

1,811

1,216

-595

Net Sales

6,158

6,214

+56

Operating Profit

-108

73

+181

Net Sales

8,930

8,924

-6

343

346

+3

5,339

5,674

+335

353

381

+28

20,003

20,383+380+48(Million yen)
Net Sales
1

2

3

4

5

Onward Trading
IslandChacott
Creative Yoko

6

Yamato7

Domestic Subtotal

8

Copyright © ONWARD HOLDINGS CO., LTD.

Onward Kashiyama + HD

(Excl. Onward Kashiyama + HD)

Europe9America

10

Asia

11

Guam Resort

Operating Profit
Net Sales

Operating Profit

Net Sales
Operating Profit
Net Sales

Overseas Subtotal

1,320

1,368
68,224+2

Operating Profit

3,917

3,839

-78

Net Sales

9,733

10,074+341

Operating Profit

-151

-154

-3

Net Sales

1,682

1,420

-262

Net Sales

Operating Profit

-270

-542

-272

Net Sales

6,663

6,541

-122

6

-234

-240

397

498

+101
+58

Operating Profit
Net Sales
Operating Profit

Operating Profit
Net Sales

13

Consolidated Total

Operating Profit

- 296

- 238

18,475

18,533+58-711-1,168-457

168,700

173,800+5,100

2,100

4,100

+2,000Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.

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

49
48

(B-A)

68,222

Operating Profit

Net Sales
12

Change

FY02/23 Full Year: Outlook by Company (YoY)FY02/22
Results (A)Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

1

Onward Kashiyama +HD

2Onward Trading

Change% of Change

(B-A)

(B/A)

(announced in Sep-2022) (B)

91,39598,914+7,519Operating Profit-1,8572,643+4,50014,760
1,788
5,753
-124
8,311
332
5,194
319
20,326
1,280
67,0263,201
13,182
-156
803
-451
5,204
-182
399
-704
19,588-1,493
168,453-1,07914,625
1,216
6,214
73
8,924
346
5,674
381
20,383
1,368
68,224
3,839
10,074
-154
1,420
-542
6,541
-234
498
-238
18,533-1,168173,800
4,100

-135
-572
+461
+197
+613
+14
+480
+62
+57
+88
+1,198+638-3,108+2+617-91+1,337-52+99+446-1,055+325+5,347+5,179Net Sales
Operating Profit
Net Sales

Island4Chacott

5

Creative Yoko

6

Yamato7

Domestic Subtotal

Net Sales(Excl. Onward Kashiyama + HD)

Operating Profit

8

Europe9America

10

Asia

11

Guam Resort

12

Overseas Subtotal

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

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

Net Sales

Consolidated Total

Revised Forecast

Net Sales

313

FY02/23

Operating Profit

Note: The groupbreakdown isHOLDINGS
calculated usingCO.,LTD.
simple sums. Consolidated totals are after eliminating intergroup transactions.
© Copyright 2007-2015
ONWARD

50
49

+8.2％
-0.9％
-32.0％
+8.0％
+7.4％
+4.2％
+9.2％
+19.4％
+0.3％
+6.9％
+1.8％
+19.9％-23.6％+76.8％+25.7％+24.8％

-5.4％
+3.2％

End-1H FY02/23: Balance Sheet

FY02/22

FY02/23

End

End-1H

Change(Billion yen)

1
2
3
4

Current Assets
Cash and
Deposits
Accounts
Receivable-trade

157.7

154.5

-3.2

60.5

58.0

-2.5

15.2

14.7

-0.5

14.2

11.3

-2.9

5

Inventory

26.8

27.5

+0.7

6

Non-current Assets

97.2

96.4

-0.8

7

Property, Plant andEquipment

58.0

56.2

-1.8

8

Intangible Assets

9.3

8.5

-0.8

9

Investments andOther Assets

29.8

31.7

+1.9

80.4

72.8

-7.6

10

Copyright
LTD.
CO., LTD.
HOLDINGS CO.,ONWARD HOLDINGS© ONWARD
Copyright ©

Total Assets

Total Liabilities

11

Accounts
Payable-trade

18.2

18.0

-0.2

12

Borrowings

35.1

30.5

-4.6

13

Other

27.1

24.2

-2.9

14

Total Net Assets

77.2

81.6

+4.4

15

Shareholders’ Equity
Ratio

42.4%

46.1%

+3.7%

16

Current Ratio

108.5%

115.5%+7.0%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

51
50

Reasons for change

Seasonal factors

Sale of Guam hotel

Increase in investment securities due to revaluation

Repayment of debt

FY02/23 1H: Cash Flows/Capital Expenditures▍Consolidated Cash Flows(Million yen)

FY02/22 1H

FY02/23 1H

Change1Cash flows from operating activities

962

1,399

+437

2

Cash flows from investing activities

20,022

5,935-14,087

3

Cash flows from financing activities-23,966-8,332+15,634

4

Cash and cash equivalents

19,261

14,739-4,522

Copyright
LTD.
CO., LTD.
HOLDINGS CO.,ONWARD HOLDINGS© ONWARD
Copyright ©

▍Capital Expenditures(Million yen)

FY02/23 1H

Change

5

Capex

2,385

1,918

-467

6

Depreciation and Amortization

2,392

2,243

-149

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

52
51

FY02/22 1H

FY02/23 1H: Breakdown of SG&A Expenses, Non-Operating
Profit/Loss and Extraordinary Profit/Loss (Consolidated)(Million yen)

FY02/22
Results

FY02/23
Results(% of Change)

1H

1H

1H

YoY

1

Personnel

18,134

18,276

0.8%

2

Rent

10,87011,563

6.4%

3Transportation

4

Promotion andAdvertising

3,083
2,810

3,083
1,844

0.0%
-34.4%(Million yen)(% of Change)-10.3%YoY
1H

Non-Operating Profit

1,244

1,116

11

Interest income

111

119

7.2%

12

Foreign exchange gains

109

708

549.5%

13

Subsidy income

450

109

-75.8%

14

Other

573

178

-68.9%

15

Non-Operating Loss

812

655

-19.3%

16

Interest expenses

221

131

-40.7%

17

Share of loss of entities
accounted for using equity
method4234-19.0%

18

Other

548

489

-10.8%

5

Depreciation

1,843

1,870

1.5%

19

Total Non-Operating
Profit/Loss

432

461

6.7%

6

Other

7,572

7,906

4.4%

20

Extraordinary Profit

20,3701,455-92.9%

17,089

-

-

92

120

30.4%

7

Total SG&A
Expenses

44,31244,5420.5%

8Extraordinary
loss adjustment

1,062

4

-99.6%

9(Reference)
Effective SG&A
Expenses

22
23

Copyright © ONWARD HOLDINGS CO., LTD.

FY02/23
Results
1H

10

21

45,37444,538© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

53
52

FY02/22
Results
1H-1.8%

Gain on sales of noncurrent assets
Gain on sales of investment
securities
Gain on sales of shares ofsubsidiaries and associates

2,944

1,306

-55.6%

24

Other

244

28

-88.5%

25

Extraordinary Loss

5,393

485

-91.0%

26

Extraordinary loss due toclosing and other

1,062

4

-99.6%

27

Loss on sales of shares ofsubsidiaries and associates

1,829

-

-

28

Loss on liquidation ofsubsidiaries and associates

1,968

-

-

29

Impairment loss

222

470

111.7%

310

11-96.5%

14,977970-93.5%

30
31

Other

Extraordinary Profit/Loss

FY02/23 1H: Results by Group
FY02/22 Results(Million yen)

Onward Kashiyama+ HD
Domestic Subtotal(Excl. Onward Kashiyama + HD)

Overseas Subtotal

Copyright
LTD.
CO., LTD.
HOLDINGS CO.,ONWARD HOLDINGS© ONWARD
Copyright ©

YoY (% of Change)

2Q

1H

1Q

2Q

1H

1Q

2Q

1H

1

Net Sales

22,704

18,68841,392

26,13519,92046,055

15.1%

6.6%

11.3%

2

Gross Profit

13,244

9,611

22,855

15,815

11,34327,158

19.4%

18.0%

18.8%

(% of Sales)(58.3%)(51.4%)(55.2%)(60.5%)(56.9%)(59.0%)(2.2%)(5.5%)(3.8%)

SG&A Expenses

13,047

13,04626,09314,063

12,763

26,826

7.8%

-2.2%

2.8%

(% of Sales)(57.5%)(69.8%)(63.0%)(53.8%)(64.1%)(58.2%)(-3.7%)(-5.7%)(-4.8%)

34

197-3,435-3,238

1,752-1,420332

789.3%(% of Sales)(0.9%)--(6.7%)-(0.7%)(5.8%)-

5

Net Sales

17,202

15,14932,351

17,116

15,68832,804

-0.5%

3.6%

1.4%

6

Gross Profit

8,439

7,749

16,188

8,346

7,810

16,156

-1.1%

0.8%

-0.2%

(% of Sales)(49.1%)(51.2%)(50.0%)(48.8%)(49.8%)(49.3%)(-0.3%)(-1.4%)(-0.7%)

SG&A Expenses

7,379

7,711

15,090

7,217

7,303

14,520

-2.2%

-5.3%

-3.8%

(% of Sales)(42.9%)(50.9%)(46.6%)(42.2%)(46.6%)(44.3%)(-0.7%)(-4.3%)(-2.3%)

7

8

Operating Profit

Operating Profit

1,060

38

1,098

1,129

507

1,636

6.5%

1234.2%49.0%(% of Sales)(6.2%)(0.3%)(3.4%)(6.6%)(3.2%)(5.0%)(0.4%)(2.9%)(1.6%)

9

Net Sales

8,643

2,837

11,480

3,732

4,001

7,733

-56.8%

41.0%-32.6%

10

Gross Profit

3,352

1,032

4,384

1,437

1,724

3,161

-57.1%

67.1%-27.9%(% of Sales)(38.8%)(36.4%)(38.2%)(38.5%)(43.1%)(40.9%)(- 0.3%)(6.7%)(2.7%)

SG&A Expenses

3,339

1,713

5,052

2,050

2,243

4,293

-38.6%

30.9%-15.0%(% of Sales)(38.6%)(60.4%)(44.0%)(54.9%)(56.1%)(55.5%)(16.3%)(-4.3%)(11.5%)

13

-681

-668

-613

-519

-1,132(0.2%)

-

-

-

-

-

-

-

-

11

12

Operating Profit(% of Sales)

Note: Calculated using simple sums.

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

54
53

FY02/23

1Q

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.