FY02/23 Q3

Results Presentation Material

January 12, 2023
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Today, I would like to provide an overview of our Group’s financial results for the third quarter of the
fiscal year ending February 28, 2023 using the Results Presentation Material.
This overview has two main points. One is that net sales and profit at all levels exceeded the full-year
forecast in the nine months ended November 30, 2022 due to the continuous strong performance. The
other is that the full-year forecast was revised upward in light of the current situation.
First, please take a look at slide 4 of the Results Presentation 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.

12

Contents

01

Copyright © ONWARD HOLDINGS CO., LTD.

02

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

23

03
04
05

Financial Summary

P. 3

1. Financial Highlights

P. 3

2. FY02/23 Q3 Consolidated Results

P. 6

3. FY02/23 Full-Year Forecast Revision

P.11

TOPICS

P.13

1. OMO Strategy

P.13

2. Apparel Business

P.15

3.

P.17

Lifestyle Business

Sustainable Management

P.19

Financial Situation

P.21

DATA BOOK

P.25

01
Financial Summary

1. Financial Highlights

Copyright © ONWARD HOLDINGS CO., LTD.

2. FY02/23 Q3 Consolidated Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

34

3. FY02/23 Full-Year Forecast Rev ision

Financial Highlights: FY02/23 Cumulative Q3 Consolidated Results

Net Sales

Operating Profit

Recurring Profit

Net Profit

1 3 0 . 4 billion yen

4 . 3 billion yen

4 . 7 billion yen

2 . 7 billion yen+6.0 billion yen YoY+5.3 billion yen YoY+5.5 billion yen YoY-5.4 billion yen YoY◼ Cumulative Q3 net sales increased by 6 billion yen (+5%) YoY due to a clear recovery
mainly at our mainstay Onward Kashiyama brand business, and strong sales at storesthat introduced the “Click & Try” OMO service.

Copyright © ONWARD HOLDINGS CO., LTD.

◼ In addition to the success of the global business reforms, inventory reduction anddiscount sales reduction measures improved the gross profit margin (52.6%→55.7%),
while the SG&A expense ratio also steadily declined (53.4%→52.4%).
◼ As a result, cumulative Q3 operating profit and recurring profit returned to profitability.
◼ Cumulative Q3 net profit fell because of a one-time factor in FY02/22, when the
Company recorded substantial profit from the sale of real estate.

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

4

Here the key points of the consolidated financial results for the nine months ended November 30, 2022
are stated as financial highlights.
For the consolidated performance of the nine-month period, net sales came to ¥130.4 billion, an
increase of ¥6.0 billion year on year, due to the recovery of the brand businesses and acceleration of the
OMO strategy, mainly led by Onward Kashiyama. As for profit, operating profit grew ¥5.3 billion to ¥4.3
billion and recurring profit increased ¥5.5 billion to ¥4.7 billion, both returning to the black. This wasdue to the improved gross profit margin resulting from reductions of both inventory and discount sales
and lower SG&A expense ratio.
Net profit fell in reaction to the one-time factor of a gain on sales of real estate recorded in the same
period of last fiscal year.
Next, please look at slide 5.

Financial Highlights: FY02/23 Full-Year Forecast Revision

Net Sales

Operating Profit

Recurring Profit

Net Profit

175.0 billion yen

5.0 billion yen

5.2 billion yen

2.6 billion yen+1.2 billion yen vs. previous
forecast+6.5 billion YoY+0.9 billion yen vs. previous
forecast+6.1 billion YoY+0.9 billion yen vs. previous
forecast+4.7 billion yen YoY+0.4 billion yen vs. previous
forecast-6.0 billion yen YoY

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Net sales for both the consolidated cumulative Q3 period and the current period havebeen strong as customer-centric product measures which include customization were
supported and sales remained brisk at stores that introduced OMO services, while both
the Apparel and Lifestyle businesses have trended steadily.

◼ Also, our gross profit margin exceeded the previous forecast due to the thoroughimplementation of sales measures to reduce price discounting as much as possible,
and the progress of global business reforms are continuing to contribute to the efficientuse of SG&A expenses.
◼ As a result, the operating profit, recurring profit, and net profit for the consolidated
cumulative Q3 period were all higher than the previous full-year forecast.
◼ We have revised the full-year forecast upward based on the above.

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

5

On September 27 last year, we announced a revision of our full-year forecast. Yesterday, we announced
our second upward revision to our full-year performance forecast for the current fiscal year.
The revised forecast is for net sales to be up ¥1.2 billion to ¥175.0 billion, operating profit to increase¥900 million to ¥5.0 billion, recurring profit to increase ¥900 million to ¥5.2 billion, and net profit toincrease ¥400 million to ¥2.6 billion, compared to the previous forecast. This revision was madebecause operating profit, recurring profit, and net profit for the nine-month period have all exceeded
the full-year forecast announced in September of last year, and under the current situation, sales
continue to be strong.
These are the highlights for the current financial results.
Now, I would like to explain the details of the financial results for the third quarter of the fiscal year
ending February 28, 2023.
Please refer to slide 7.

01
Financial Summary

1. Financial Highlights

Copyright © ONWARD HOLDINGS CO., LTD.

2. FY02/23 Q3 Consolidated Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

67

3. FY02/23 Full-Year Forecast Rev ision

FY02/23 Cumulative Q3: Consolidated Results◼ Net sales increased by 6 billion yen (5%) YoY to 130.4 billion yen.
◼ Operating profit/loss improved by 5.3 billion yen YoY, achieving operating profit of 4.3 billion yen.

FY02/22

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

FY02/23

YoY

Cumulative
Q3% of Sales

Cumulative
Q3% of Sales

Change% of Change% of Sales
Change1

Net Sales

124,355-

130,397-+6,042

+4.9%

-

2

Gross Profit

65,45952.6%

72,62555.7%+7,166+10.9%

+3.1%

3

SG&A
Expenses

66,40753.4%

68,31052.4%+1,903

+2.9%

-1.0%

4

Operating
Profit

-948

-

4,315

3.3%

+5,263

5

Recurring
Profit

-759

-

4,698

3.6%

+5,457

6

Net Profit

8,082

6.5%

2,723

2.1%

- 5,359-66.3％-4.4%

7

EBITDA*

2,832

2.3％

8,244

6.3%

+5,412+191.0%+4.0%*Note: EBITDA = operating profit + depreciation and amortization.

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

7

Here, the results of consolidated totals are shown. The orange-framed part in the middle shows the results forthe nine months ended November 30, 2022.
Net sales in row 1 increased 4.9% year on year. Led by Onward Kashiyama, which is accelerating its OMO
strategy, domestic lifestyle businesses such as Yamato and Creative Yoko also performed well, resulting in an
increase in net sales mainly from domestic operations.
Gross profit in row 2 was up 10.9% year on year to ¥72.625 billion. Gross profit margin improved 3.1 percentage
points from the same period last fiscal year to 55.7%. Continuing from the first half, Onward Kashiyama
contributed to this result by curbing discount sales and improving efficiency through centralized inventory
management.
SG&A expenses in row 3 grew 2.9% year on year to ¥68.31 billion. Rent and other expenses were up with theincrease in net sales, but expenses were appropriately controlled based on the global business reforms.
Furthermore, if excluding the impact of the temporary closings from COVID-19 which resulted in the transfer of¥1.3 billion of fixed costs to extraordinary losses in the same period the previous fiscal year, the level of SG&A
expenses will practically be the same year on year.
As a result, operating profit in row 4 was ¥4.315 billion, up ¥5.3 billion from the same period of the previous fiscal
year, and returned to the black.
Although it is not shown in the table on slide 7, in non-operating profit/loss, which falls between operating profit
in row 4 and recurring profit in row 5, foreign exchange gains increased due to the sharp depreciation of the yen,
and recurring profit increased ¥400 million on top of operating profit due to such factors and reached ¥4.698
billion, an increase of ¥5.5 billion from the same period of the previous year.
Net profit in row 6 was ¥2.723 billion. Although also not shown in the table, extraordinary income included a ¥1.2
billion gain on the sale of a hotel in Guam in the first quarter and a ¥100 million gain on the sale of investment
securities due to the dissolution of cross-holdings, and extraordinary losses included a ¥700 million impairment
loss on fixed assets. As a result of the above and the payment of income taxes, profit decreased 66.3% year on
year.
EBITDA in row 7 increased ¥5.4 billion year on year to ¥8.244 billion.
Next, please look at slide 8.

FY02/23 Cumulative Q3: Net Sales & Operating Profit by Segment◼ 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.
◼ For overseas businesses, the apparel business posted lower net sales due to the withdrawal from the
Italian business, and net sales and operating profit improved in the lifestyle business.
◼ Operating loss increased temporarily YoY in the overseas business due to pent -up demand in FY02/22
Q1 before withdrawing from the Italian business, but was cleared from Q2 onward.

1

2

FY02/23
Cumulative Q3

Net Sales

89,51895,403+5,885

Operating Profit-1,268

4,069+5,337

Net Sales

27,372

29,200+1,828

+6.7%

2,070

2,433

+363

+17.5%

116,890

124,603+7,713

+6.6%

802

6,502

+5,700+710.7%

13,424

10,946-2,478-18.5%-531-1,035

-504

1,186

1,488

+302

-557

-240

+317

Net Sales

14,61012,434-2,176

Operating Profit-1,088-1,275-187

124,355

130,397+6,042

-948

4,315

+5,263

ApparelLifestyleOperating Profit
Net Sales

3

Domestic Total
Operating Profit
Net Sales

4

ApparelOperating Profit

Copyright © ONWARD HOLDINGS CO., LTD.

Net Sales

5

LifestyleOperating Profit

6

Overseas Total
Net Sales

7

YoY

FY02/22
Cumulative Q3(Million yen)

Consolidated Total
Operating Profit

Change% of Change+6.6%+25.5%-14.9%+4.9%

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 The
2007-2015
ONWARDHOLDINGS
CO.,LTD.
segment breakdown
is calculatedusing simple
sums of all companies. Consolidated totals are after eliminating intergroup transactions.

8Here, net sales and operating profit by segment are shown.
As shown in the orange-framed area, in domestic operations, net sales in the apparel business increased
and returned to the black. Both net sales and operating profit grew in the lifestyle business. As a result,
total net sales in the domestic operations increased 6.6% year on year, or ¥7.7 billion in value.
Operating profit was up ¥5.7 billion year on year.

In overseas operations, net sales in the apparel business fell due to withdrawing from the Italianbusiness, and profit decreased due to temporary factors such as special demand that rose before thewithdrawal. For the lifestyle business, net sales grew and operating profitability improved. Total net
sales in the overseas operations decreased 14.9% year on year, or ¥2.2 billion in value. Operating loss
increased ¥200 million year on year.
Overseas operations continue to be an issue due to the impact from COVID-19, the Russia-Ukraine
crisis, and others.
Next, please refer to slide 9.

FY02/23 Cumulative Q3: Net Sales & Operating Profit Increases/Decreases
by Company◼ Net sales increased by 6 billion yen YoY, with a 7 billion yen increase at Onward Kashiyama and otherfactors absorbing the 3.7 billion yen decline in Europe after withdrawing from the Italian business.
◼ Operating profit/loss returned to the black due to factors such as 4.9 billion yen in operating profit/loss
improvement at Onward Kashiyama.
▍Net Sales(Billion yen)

130.4(+6.0)

FY02/22
Cumulative
Q3

OnwardKashiyama +HD

OnwardTradingIslandChacott

Creative
Yoko

YamatoOtherdomestic
businesses

EuropeAmerica

Asia

Guam
Resort▍Operating Profit

Consolidated
FY02/23
elimination CumulativeQ3

4.3

Copyright © ONWARD HOLDINGS CO., LTD.

(+5.3)

FY02/22
Cumulative
Q3

OnwardKashiyama +HD

OnwardTradingIslandChacott

Creative
Yoko

YamatoOtherdomestic
businesses

EuropeAmerica

Asia

Guam
ResortConsolidated
FY02/23
elimination Cumulative
Q3© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

9

Here, changes in net sales and operating profit by Group company for the nine months ended
November 30, 2022 are organized in a waterfall chart.
The trend remains largely unchanged from the first half. The major fluctuating factors common in net
sales and operating profit are the impact from increased net sales and operating profit of Onward
Kashiyama and lower net sales following the withdrawal of businesses in Europe, namely Italy.
Next, please look at slide 10.

FY02/23 Cumulative Q3: Net Sales by Channel◼ Net sales at physical stores total (department stores, shopping centers and other) increased by 10％ YoY.
(16% increase on a like-for-like store basis, excluding closed stores).
◼ E-commerce sales increased by 10% YoY. The e-commerce ratio and the directly managed e-commerce
ratio remained at a high level at 29% and 86%, 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

29,951

24,14854,09918,2182,553

20,771

74,870

27.7%

87.7%

2

% of sales

40.0%

32.3%

72.3%

24.3%

3.4%

27.7%

100.0%

3

YoY+15.2%+9.6%+12.7%+2.7%+23.7%+4.9%+10.4%

-1.5%

-1.9%

4

Eight Domestic
Subsidiaries Using ECommerce*

7,056

17,221

24,277

9,981

1,907

11,88836,165

32.9%

84.0%

5

Total Domestic
Subsidiaries Using ECommerce

37,00741,36978,37628,1994,460

32,659111,035

29.4%

86.3%

6

% of sales

33.3%

37.3%

70.6%

25.4%

4.0%

29.4%

100.0%

7

YoY+12.4%

+7.5%

+9.7%

+8.3%

+18.2%

+9.5%

+9.7%

±0.0%

-1.0%

*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.

10Here, net sales by channel for the nine months ended November 30, 2022 are shown.
Net sales of subsidiaries by channel for the nine-month period were up 9.7% year on year in the physicalstore channel, and up 9.5% in the e-commerce channel. Also, the e-commerce ratio was 29%. The directly
managed e-commerce ratio continues to be high at a level of 86%.

Next, please look at slide 12.

01
Financial Summary

1. Financial Highlights

Copyright © ONWARD HOLDINGS CO., LTD.

2. FY02/23 Q3 Consolidated Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

13
11

3. FY02/23 Full-Year Forecast Revision

FY02/23: Full-Year Forecast Revision◼ Net sales were revised upward by 1.2 billion yen from the previous forecast, and are forecast to increase 6.5billion yen YoY to 175 billion yen.
◼ Operating profit/loss was revised upward by 900 million yen from the previous forecast, a 6.1 billion yen
improvement YoY, with expected operating profit of 5 billion yen.
FY02/23

FY02/23

Revised Forecast Previous Forecast

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

1

Net Sales2(announced in Jan-2023) (announced in Sep-2022)(B)(A)

FY02/22

Change% of Change

(A-B)

(A/B)

Previous year’s
results (C)Change% of Change

(A-C)

(A/C)

175,000

173,800+1,200+0.7%

168,453+6,547

+3.9%

Gross
Profit

96,70094,000+2,700+2.9%

87,612+9,088+10.4%

3

SG&A
Expenses

91,70089,900+1,800+2.0%

88,691+3,009+3.4%

4Operating
Profit

5,000

4,100

+900

+22.0%-1,079+6,0795

Recurring
Profit

5,200

4,300

+900

+20.9%

507+4,693+925.6%

6

Net Profit

2,600

2,200

+400

+18.2%

8,566-5,966-69.6%

7

EBITDA*

10,000

9,080

+920

+10.1%

3,915+6,085+155.4%*Note: EBITDA = operating profit + depreciation and amortization.

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

12

Here, I would like to explain the revised full-year forecast.
As I mentioned in the beginning, yesterday, we again revised our full-year forecast for the fiscal year
ending February 28, 2023.
The orange column refers to the revised forecast figures.
The figures are as presented in the beginning, but once again, the revised forecast figures for the fiscal
year ending February 28, 2023 are; net sales up ¥1.2 billion to ¥175.0 billion, gross profit up ¥2.7 billion
to ¥96.7 billion, operating profit up ¥900 million to ¥5.0 billion, recurring profit up ¥900 million to ¥5.2
billion, and net profit up ¥400 million to ¥2.6 billion, compared to the previous forecast.
Slides 13 and thereafter present topics.

02
TOPICS
1. OMO Strategy
2. Apparel Business

Copyright © ONWARD HOLDINGS CO., LTD.

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

15
13

.

1. OMO Strategy◼ Number of Onward Kashiyama stores implementing its “Click & Try” OMO service increased to 330.
◼ Net sales level of existing stores offering the OMO service recovered to 100% of FY02/20 Q3 level,

19 pp higher than stores that don’t offer the service (81%).
◼ Number of items reserved for “Click & Try” rapidly increased from 29,000 in Q2 to 66,000 in Q3.

▍Trends in number of stores offering Click & Try
Ratio of stores offering
Click & Try

34.8％▍Items reserved for Click & Try service

41.5％

22.7％
200

290

330

storesstoresEnd of May-22

End of November-22

66,000storesEnd of February-22

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

Copyright © ONWARD HOLDINGS CO., LTD.

▍Net Sales: FY02/23 Cumulative Q3 versus
FY02/20 Cumulative Q3

29,00025,000100％81％
NonClick &TrystoresQ1+19 pp

Click &
Try
storesQ2

Q3“Click & Try” usage increased rapidly in Q3

Click & Try service boosted net sales© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

14

Slide 14 shows Onward Kashiyama’s OMO strategy.
As of the end of the third quarter of the fiscal year ending February 28, 2023, more than 40% of Onward
Kashiyama stores are offering “Click & Try”, an OMO service which is greatly contributing to Onward
Kashiyama’s performance improvement.
There is a difference of 19 percentage points between stores where the Click & Try service isimplemented and stores where it is not implemented when comparing net sales for the nine months
ended November 30, 2022 to the same period of the fiscal year 2019. Net sales of the stores with theservice recovered to the pre-COVID-19 fiscal 2019 level. This service is contributing to brisk sales
growth.
The right-hand side of slide 14 shows the quarterly number of items reserved for Click & Try. In the third
quarter, the number of items sharply rose from the second quarter, from approximately 29,000 to
66,000.

02
TOPICS
1. OMO Strategy
2. Apparel Business

Copyright © ONWARD HOLDINGS CO., LTD.

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

17
15

2. Apparel Business

Nijyusanku 【Onward Kashiyama】◼ Cumulative Q3 like-for-like store sales significantly increased by +32%

YoY.
◼ Average customer spend increased due to product value improvement andprice revisions for some products.
◼ Sales of skirts and dresses more than doubled in response to increased

demand for going out.
Cumulative Q3
Sales
(YoY)

+

23.4%

Jiyuku 【Onward Kashiyama】

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Cumulative Q3 like-for-like store sales

◼

◼

ICB

【Onward Kashiyama】◼ Cumulative Q3 like-for-like store

significantly increased by +29% YoY.

sales grew by +24% YoY.

Average customer spend increased
due to a higher number of producttypes with a high-quality feel.

◼ Sales increased by expanding

Sales significantly increased afterstrengthening mainstay knitwear anddresses.
Cumulative Q3
Sales
(YoY)

+

12.6%

the product variations of lightouterwear suitable for various
occasions and temperatures.

Cumulative Q3
Sales
(YoY)

+

12.3%

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

16

Slide 16 shows the favorable trend of our core ladies’ brands.
Net sales for the nine months ended November 30, 2022 increased mainly in the like-for-like stores; up
23% year on year for Nijyusanku, 13% for Jiyuku, and 12% for ICB. All recorded strong growth. Such
recovery in the core brands is sharply boosting the Group’s performance.

02
TOPICS
1. OMO Strategy
2. Apparel Business

Copyright © ONWARD HOLDINGS CO., LTD.

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

19
17

3. Lifestyle Business
Creative Yoko
◼ A collaboration store “PET PARADISE X Ueshima Coffee Company” hasopened. Sales started off strong.
• A pet-friendly collaboration shop/café “PET PARADISE X Ueshima Coffee Company”
opened on Thursday, October 20th, 2022 at Fukaya-Hanazono Premium Outlet.

Copyright © ONWARD HOLDINGS CO., LTD.

• By offering a wide selection of products and collaborating with a different type of business,
we responded to the needs of those wanting to go out and eat out with their pets as part oftheir family.

Cumulative Q3
Sales
(YoY)

+

13.6%

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

18

Slide 18 introduces the topic of Creative Yoko, which operates the pet/home life business in the lifestylebusiness.
In October last year, we opened a collaboration store of Creative Yoko’s PET PARADISE and Ueshima
Coffee Company in the city of Fukaya in Saitama Prefecture. Meeting people’s needs to go out and enjoy
eating out together with their pets as part of their family, the store’s sales have remained favorable
since its opening.

03
Copyright © ONWARD HOLDINGS CO., LTD.

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

21
19

Sustainable Management

Onward Kashiyama

Onward Trading• ”steppi by UNFILO”, launched in the spring of 2022,
won the Good Design Award 2022 (sponsored by
the Japan Institute of Design Promotion).

• As part of joint upcycling* initiatives, Onward Trading and
ANA jointly developed “ANA Special Slippers” made from
airplane seat covers subject to disposal.

• To use recycled materials whenever possible,
polyester yarn made from used plastic bottles andplastic waste was incorporated.

• Each pair is handmade by craftsmen in Kahoku Town,
Yamagata Prefecture, Japan’s largest production site ofslippers. As a result, the product also contributes toregional development through revitalizing traditional
industries.

• Both the outsole and insole contain recycledmaterials. Furthermore, shoeboxes and shoppingbags were discontinued to reduce CO2 emissions.
• 10,000 pairs are expected to be sold in the first year.

• There were about 4,000 applications for the first andsecond rounds of pre-order lottery sales, and a total of 120
pairs were sold. It was so popular only 3% of applicants
could buy it.

Copyright © ONWARD HOLDINGS CO., LTD.

*Upcycling: An initiative to promote sustainable manufacturing by adding
values to items that would otherwise be discarded by upgrading andtransforming them into a completely new product.

Onward Trading
Simply comfortableshoes.

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

20

Slide 20 introduces examples of sustainable management.
As shown on the left-hand side of the slide, in spring 2022, Onward Kashiyama launched the “steppi by
UNFILO” shoe brand made from recycled materials such as used plastic bottles. “steppi” shoes are both
environment- and foot-friendly knit pumps which we independently developed over approximately two
years and which won the Good Design Award 2022. Sales are also very strong, with sales volume for the
initial fiscal year expected to reach 10,000 pairs.
As shown on the right-hand side of the slide, Onward Trading has developed room shoes (slippers) using
discarded airplane seat covers in a joint effort with ANA.
They are a popular product and the first and second preliminary lottery sales received about 4,000
applications for sales of a total of 120 pairs.
Continuing, I would like explain the financial situation.
Please take a look at slide 22.

04
Copyright © ONWARD HOLDINGS CO., LTD.

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

23
21

Consolidated Balance Sheet◼ Net assets increased to 84.9 billion yen, up 7.7 billion yen from the end of FY02/22.
◼ Shareholder's equity ratio increased to 45.0%, up 2.6 pp from the end of FY 02/22.
◼ Current ratio increased to 113.8%, up 5.3 pp from the end of FY02/22, further improving management

stability.
▍Net Assets▍Shareholder's equity ratio

45.0%+2.6 pp

+7.7

84.9

42.4%

billionyen

End-FY02/22

billion yen

77.2

End-Q3 FY02/23▍Current ratio

billionyen

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

113.8%+5.3 pp108.5%
End-FY02/22

End-Q3 FY02/23

End-FY02/22

End-Q3 FY02/23© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

22

Net assets as of the end of the third quarter of the fiscal year ending February 28, 2023 increased ¥7.7
billion from the end of the previous fiscal year to ¥84.9 billion. As a result, shareholders’ equity ratiorose 2.6 percentage points over the same period to 45.0% and is maintaining an appropriate level.
The current ratio also rose 5.3 percentage points to 113.8%, maintaining the safety standard of 100% or
more.

EBITDA/Cash Flows▍EBITDA

8.2◼ EBITDA increased 5.4 billion yen+5.4

YoY to 8.2 billion yen.
(Expected to increase to 10 billion
yen for the full year)

billion yen

billion yen

2.8
billion yen

FY02/22
Cumulative Q3

FY02/23
Cumulative Q3▍Cash Flows◼ Cash flows from operating activities amounted to 1.4 billion yen due to
Copyright © ONWARD HOLDINGS CO., LTD.

a return to the black for operating profit and recurring profit.
◼ Cash flows from inv esting activities amounted to 3.9 billion yen due tothe sale of the hotel business in Guam.
◼ Free cash flow (operating cash flow + inv esting cash flow) amounted

to 5.3 billion yen.

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

23

Slide 23 shows EBITDA and cash flows.
EBITDA increased ¥5.4 billion from the same period of the last fiscal year to ¥8.2 billion.
Cash flows from operating activities were ¥1.4 billion and cash flows from investing activities were ¥3.9
billion for a total free cash flow of ¥5.3 billion.

Capital Expenditures/Depreciation and Amortization▍Capital Expenditures

4.1◼ Capital expenditures were 4.1 billion yen,

up 400 million yen YoY.

billion yen

3.7
billion yen

FY02/22
Cumulative Q3

FY02/23
Cumulative Q3▍Depreciation and Amortization

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Depreciation and amortization were

3.3 billion yen, down 200 million yen
YoY.

3.5
billion yen

3.3
billion yen

FY02/22
Cumulative Q3

FY02/23
Cumulative Q3© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

24

Slide 24 shows capex, depreciation and amortization.
Capex increased ¥400 million to ¥4.1 billion, while depreciation and amortization fell ¥200 million to¥3.3 billion from the same period of the previous fiscal year.
Additional information related to the financial results for the third quarter of the fiscal year ending
February 28, 2023 is provided for your reference as a data book section starting on slide 25.
This ends my presentation on the financial results for the third quarter.
Thank you very much for your kind attention.

05
Copyright © ONWARD HOLDINGS CO., LTD.

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

27
25

FY02/23 Q3: Consolidated Financial Results

FY02/22

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

Q3

FY02/23% of Sales% of Sales

Change% of Change% of Sales
Change1

Net Sales

43,570-48,231-+4,661+10.7%-

2

Gross Profit

24,441

56.1%

27,89057.8%+3,449+14.1%+1.7%

3

SG&A Expenses

22,09550.7%

23,76849.3%+1,673

+7.6%

-1.4%

4

Operating Profit

2,346

5.4％

4,122

8.5%

+1,776+75.7%+3.1%

5

Recurring Profit

2,103

4.8％

4,044

8.4%

+1,941+92.3%+3.6%

6

Net Profit

634

1.5%

2,247

4.7%

+1,613+254.4%+3.2%

7

EBITDA*

3,519

8.1％

5,406

11.2%

+1,887+53.6%+3.1%

Note: EBITDA = operating profit + depreciation and amortization.

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

26

Q3

YoY

FY02/23 Q3: Net Sales and Operating Profit by Segment2+2,101+6.3%

Operating Profit

2,063

3,585

+1,522+73.8%Net Sales

9,549

10,045

+496

+5.2%

879

949

+70

+8.0%

43,14745,744+2,597+6.0%

Operating Profit

2,942

4,534

+1,592+54.1%Net Sales

2,674

4,175

+1,501+56.1%

-287

-72

+215

Net Sales

456

526

+70

Operating Profit

-133

-71

+62

3,130

4,701

+1,571

-420

-143

+277

43,57048,231+4,661+10.7%

2,346

4,122

+1,776+75.7%

ApparelLifestyle
Net Sales

4

Domestic Total

ApparelOperating Profit

5

Lifestyle
Net Sales

6

Overseas Total
Operating Profit

Copyright © ONWARD HOLDINGS CO., LTD.

Net Sales

7

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.

27% of Change

35,699Operating Profit

3

Change33,598Net Sales

1

YoY

FY02/23Q3

FY02/22
Q3(Million yen)

+15.4%+50.2%

FY02/23 Q3: Net Sales and Operating Profit by Company

1

2

Onward Kashiyama + HD

Onward Trading

IslandChacott+2,382+9.0%

Operating Profit

1,967

3,336

+1,369+69.6%Net Sales

3,295

3,319

+24

+0.7%

203

205

+2

+1.0%

1,516

1,649

+133

+8.8%

7

120

+113

+1614.3%

2,058

2,223

+165

+8.0%

192

199

+7

+3.6%

1,357

1,504

+147

+10.8%+0.7%

Net Sales

Net Sales
Operating Profit

5

Creative Yoko

6

YamatoNet Sales

Operating Profit
Net Sales
Operating Profit

7

8

Copyright © ONWARD HOLDINGS CO., LTD.

9

10

11

Domestic Subtotal

Net Sales(Excl. Onward Kashiyama + HD)

Operating Profit

EuropeAmerica

Asia

Guam Resort

Overseas Subtotal

Consolidated Total

146

+1

5,330

+399

+8.1%

325

495

+170

+52.3%

16,714

16,929

+215

+1.3%

975

1,198

+223

+22.9%+44.9%

1,877

2,720

+843

-73

171

+244

Net Sales

181

321

+140

Operating Profit

-89

-158

-69

Net Sales

982

1,516

+534

Operating Profit

-95

-91

+4

Net Sales

Net Sales
Operating Profit

13

145
4,931

Operating Profit

Net Sales

Operating Profit

12% of Change

28,815

Operating Profit

4

Change26,433

Net Sales

Operating Profit

3

YoY

FY02/23Q3

FY02/22
Q3(Million yen)

Net Sales
Operating Profit+54.4%

90

144

+54

-163

-65

+98

3,130

4,701

+1,571

-420

-143

+277

43,57048,231+4,661+10.7%

2,346

4,122

+1,776+75.7%

Note: The segment
breakdown
is calculated using
simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.
© Copyright 2007-2015
ONWARDHOLDINGS
CO.,LTD.

28+77.3%+60.0%+50.2%

FY02/23 Q3: Changes in Consolidated Operating Profit

1H

Q3(Billion yen)

+1.4

+0.2

+0.0

+0.2

+4.3

-0.2
+0.5

+1.8

+3.6

+0.3
-0.8

+3.6

Copyright © ONWARD HOLDINGS CO., LTD.

billion yen-0.9© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

29

billion yen

FY02/23 Q3: Net Sales & Operating Profit Increases/Decreases by Company(Billion yen)

▍Net Sales

48.2(+4.7)

43.6

FY02/22
Q3

OnwardKashiyama +HD

OnwardTradingIslandChacott

Creative
Yoko

YamatoOtherdomestic
businesses

EuropeAmerica

Asia

Guam
ResortConsolidated
elimination▍Operating Profit

FY02/23
Q3

4.1

Copyright © ONWARD HOLDINGS CO., LTD.

(+1.8)

2.3

FY02/22
Q3

OnwardKashiyama +HD

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

30

Creative
Yoko

YamatoOtherdomestic
businesses

EuropeAmerica

Asia

Guam
ResortConsolidated
elimination

FY02/23
Q3

FY02/23 Q3: Net Sales by Channel(Million yen)

Copyright © ONWARD HOLDINGS CO., LTD.

Shopping
Centers andOtherPhysicalStores Total

Directly
Managed ECommerce

Other ECommerce
Platforms

E-Commerce
Total

Total Sales

E-Commerce
Ratio

26.2%

88.1%

1

Onward Kashiyama

12,001

9,257

21,258

6,658

899

7,557

28,8152% of sales
(百万円)

41.6%

32.1%

73.8%

23.1%

3.1%

26.2%

100.0%

YoY+13.5%

+3.5%

+8.9%

+9.1%

+9.9%

+9.2%

+9.0%

±0.0%

-0.1%

4

Eight Domestic
Subsidiaries Using ECommerce*

2,125

6,100

8,225

3,464

664

4,128

12,353

33.4%

83.9%

5

Total Domestic
Subsidiaries Using ECommerce

14,126

15,35729,483

10,122

1,563

11,685

41,168

28.4%

86.6%

6

% of sales

34.3%

37.3%

71.6%

24.6%

3.8%

28.4%

100.0%

7

YoY

+9.7%

+2.3%

+5.7%

+15.0%+14.6%+14.9%

+8.2%

+1.7%

±0.0%

3

*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.

31

Directly
Managed ECommerce
Ratio

Department
Stores

FY02/23 Cumulative Q3: Net Sales & Operating Profit by Company

1

2

3

FY02/23
Cumulative Q3

Net Sales

67,82574,870+7,045

Operating Profit-1,271

3,668+4,939Net Sales

Onward Kashiyama + HD

10,184

-689

-6.3%

728

-542

-42.7%Net Sales

4,329

4,619

+290

+6.7%

-117

142

+259

6,503

6,937

+434

+6.7%

475

541

+66

+13.9%

3,580

4,066

+486

+13.6%

213

254

+41

+19.2%

14,213

15,436+1,223

+8.6%

873

1,198

+325

+37.2%

49,06549,733

+668

+1.4%

2,073

2,834

+761

+36.7%

10,6996,964-3,735-34.9%

-120

-343

-223

Isla nd

Chacott
Net Sales

Creative Yoko
Operating Profit
Net Sales

YamatoOperating Profit

7

Domestic Subtotal

Net Sales(Excl. Onward Kashiyama + HD)

Operating Profit
Net Sales

8

EuropeOperating Profit

Copyright © ONWARD HOLDINGS CO., LTD.

9Net Sales

478

908

+430

Operating Profit

-320

-409

-89

3,193

4,246

+1,053

-173

-302

-129

America
Net Sales

10

Asia
Operating Profit

11

12

Net Sales

240

316

+76

Operating Profit

-475

-221

+254

Net Sales

14,61012,434-2,176

Operating Profit-1,088-1,275-187

124,355

130,397+6,042

-948

4,315

+5,263

Guam Resort

Oversea s Subtotal
Net Sales

13

Consolidated Total
Operating Profit

Note: The segment
breakdown
is calculated using
simple sums of all companies . Consolidated totals are after eliminating intergroup transactions.
© Copyright 2007-2015
ONWARDHOLDINGS
CO.,LTD.

32+10.4%

1,270

Operating Profit

6% of Change

10,873

Net Sales

5

ChangeOperating Profit

Onward Trading

Operating Profit

4

YoY

FY02/22
Cumulative Q3(Million yen)

+90.0%+33.0%+31.7%-14.9%+4.9%

FY02/23 Full-Year: Performance Forecast by Segment (YoY)FY02/22

FY02/23

Results (A)Current Forecast(Million yen)2

120,516

127,246+6,730-1,254

5,213+6,467

Net Sales

37,90538,891

+986

+2.6%

2,598

2,713

+115

+4.4%

158,421

166,137+7,716

+4.9%

1,344

7,926

+6,582+489.7%-12.4%

Domestic Total
Operating Profit

17,83815,627-2,211

Operating Profit-679-1,206-527

Net Sales

1,750

2,069

+319

Operating Profit

-814

-237

+577

Net Sales

19,588

17,696-1,892

Operating Profit-1,493-1,443+50

168,453

175,000+6,547-1,0795,000+6,079Net Sales

5

Copyright © ONWARD HOLDINGS CO., LTD.

6

7

Apparel+18.2%

Lifestyle-9.7%

Overseas Total

Consolidated
Total

Net Sales
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.

33

+5.6%

Lifestyle
Net Sales

4

(B/A)

ApparelOperating Profit

3% of Change(B-A)

Operating Profit

Net Sales

1

Change(announced in Jan-2023) (B)+3.9%

FY02/23 Full-Year: Performance Forecast by Company (YoY)FY02/22

FY02/23
Current Forecast

Results (A)(Million yen)
12Island4Chacott

91,39599,590+8,195-1,857

4,366+6,223

Net Sales

14,760
1,788
5,753
-124
8,311
332
5,194

13,768
1,104
6,259
175
8,946
399
5,747

-992
-684
+506
+299
+635
+67
+553

+7.6%
+20.2%+10.6%

Operating Profit

Operating Profit
Net Sales
Operating Profit
Net Sales

5

Creative Yoko

6

YamatoOperating Profit
Net Sales

7

Operating Profit

Domestic Subtotal

Net Sales(Excl. Onward Kashiyama + HD)

Operating Profit
Net Sales

8

Europe9America

Operating Profit

Copyright © ONWARD HOLDINGS CO., LTD.

Net Sales
Operating Profit
Net Sales

10

Asia

Operating Profit
Net Sales

11

Guam Resort

Operating Profit
Net Sales

12

Oversea s Total
Operating Profit

13

Consolidated Total(B/A)

Operating Profit

Net Sales

3% of Change(B-A)

Net Sales

Onward Kashiyama + HD

Onward Trading

Change(announced in Jan-2023) (B)Net Sales
Operating Profit-6.7%-38.3%
+8.8%

319

411

+92

+28.8%

20,326
1,280
67,0263,201
13,182
-156
803
-451
5,204
-182
399
-704
19,588-1,493
168,453-1,07920,637
1,353
66,5473,560
10,029
-207
1,232
-572
6,015
-394
420
-270
17,696-1,443
175,000
5,000

+311
+73
-479
+359
-3,153
-51
+429
-121
+811
-212
+21
+434
-1,892+50+6,547+6,079

+1.5%
+5.7%
-0.7%
+11.2%-23.9%

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.

34

+9.0%

+53.4%+15.6%
+5.3%
-9.7%
+3.9%

End-Q3 FY02/23: Consolidated Balance Sheet

FY02/22

FY02/23End

End-Q3

Change(Billion yen)

1
2

Current Assets

157.7

166.0

+8.3

60.5

67.7

+7.2

3

Cash and Deposits

15.2

13.0

-2.2

4

Accounts
Receivable-trade

14.2

17.6

+3.4

Seasonal factors and increased net sales

5

Inventory

26.8

32.7

+5.9

Seasonal factors and added procurement for increased net
sales

+1.0

97.2

98.2

7

Property, Plant andEquipment

58.0

56.1

-1.9

8

Intangible Assets

9.3

9.6

+0.3

9

Investments andOther Assets

29.8

32.4

+2.6

80.4

81.0

+0.6

6

10

Copyright © ONWARD HOLDINGS CO., LTD.

Total Assets

Non-current Assets

Total Liabilities

Sale of Guam hotel

Increase in investment securities due to revaluation

11

Accounts Payabletrade

18.2

23.6

+5.4

Seasonal factors and added procurement for increased net
sales

12

Borrowings

35.1

31.2

-3.9

Repayment of debt

13

Other

27.1

26.1

-1.0

14

Total Net Assets

77.2

84.9

+7.7

15

Shareholder’s Equity
Ratio

42.4%

45.0%

+2.6%

16

Current Ratio

108.5%

113.8%+5.3%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

35

Reasons for change

FY02/23 Q3: Breakdown of SG&A Expenses, Non-Operating Profit/Loss andExtraordinary Profit/Loss (Consolidated)(Million yen)

1

2

Copyright © ONWARD HOLDINGS CO., LTD.

3

Personnel
Rent
Transportation

FY02/22
Q3

8,641
6,461
1,502

FY02/23
Q3

YoY(% of Change)

8,058

-6.7%

6,874

+6.4%

1,564

4

Promotion andAdvertising

987

2,118

+114.6%

5

Depreciation

791

884

+11.8%

Non-Operating Profit

FY02/22Q3

FY02/23
Q3

347

139

YoY
(% of Change)-59.9%

26

8-69.2%

11

Interest income

12

Foreign exchange gains

-109

80

-

13

Subsidy income

354

24

-93.2%-64.9%

14

Other

77

27

15

Non-Operating Loss

589

219

-62.8%

16

Interest expenses

83

103

+24.1%

17

Share of loss of entities
accounted for using equity
method24

8-66.7%

18

Other

483

108

-77.6%
-

6

Other

3,713

4,270

+15.0%

19

Total Non-Operating
Profit/Loss

-242

-80

7

Total SG&A
Expenses

22,09523,769+7.6%

20

Extraordinary Profit938

1-99.9%

835

0-99.9％

113-72.7%

-

-3

-

8

Extraordinary
Loss Adjustment

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

Other

93

1

-98.9%

25

Extraordinary Loss

832

395

-52.5%

249

-

-

-

-

-

-

-

-

506

253

-50.0%

79142+79.7%

106

-394

21

249
22,34423,769© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

36

+4.1%

(Million yen)

10

+6.4%

22

26

Loss due to closing and other27
28

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

29

Impairment loss

30
31

Other

Extraordinary Profit/Loss

FY02/23 Cumulative Q3: Breakdown of SG&A Expenses, Non-Operating
Profit/Loss and Extraordinary Profit/Loss (Consolidated)(Million yen)

FY02/23
Cumulative Q3

Personnel

26,77526,334

-1.6%

2

Rent

17,331

18,437

+6.4%

4

5

Transportation
Promotion andAdvertising
Depreciation

4,585
3,797

2,634

4,647

3,963
2,754

+1.4%
+4.4%

+4.6%

(Million yen)

FY02/22

FY02/23

YoY

Cumulative Q3 Cumulative Q3 (% of Change)

10

Non-Operating Profit

1,591

1,255

-21.1%

11

Interest income

137

127

-7.3%

12

Foreign exchange gains

-

788

-

13

Subsidy income

804

133

-83.4%

14

Other

650

205

-68.5%

15

Non-Operating Loss

1,401

873

-37.7%

16

Interest expenses

304

234

-23.0%

17

Share of loss of entities
accounted for using equity
method66

42-36.4%

18

Other

1,031

595

-42.2%

6

Other

11,285

12,175+7.9%

19

Total Non-Operating
Profit/Loss

190

382

+101.1%

7

Total SG&A
Expenses

66,40768,310+2.9%

20Extraordinary Profit-93.2%

8

Extraordinary
Loss Adjustment

1,311

4

-99.7%

9(Reference)
Effective SG&A
Expenses

67,71868,314+0.9%

21,3081,456

17,9240-99.9%

22

Gain on sales of non-current
assetsGain on sales of investment
securities

103

123

+19.4%

23

Gain on sales of shares ofsubsidiaries and associates

2,944

1,303

-55.7%

24

Other

337

29

-91.4%

25

Extraordinary Loss

6,225

880

-85.9%

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

37

YoY(% of Change)

1

3

Copyright © ONWARD HOLDINGS CO., LTD.

FY02/22
Cumulative Q3

26

Loss due to closing and other

1,311

4

-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

728

723

-0.7%

389

153

-60.7%

15,083576-96.2%

30
31

Other

Extraordinary Profit/Loss

FY02/23 Q3 / Cumulative Q3: Results by Groups
FY02/22(Million yen)

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

Overseas Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

Q3

FY02/23

Cumulative Q3

YoY (Change)

Cumulative Q3

Q3

YoY (% of Change)

Cumulative Q3

Q3

Cumulative Q3

1

Net Sales

26,43367,82528,81574,870+2,382+7,045+9.0%

2Gross Profit

16,122

38,977

18,17745,335+2,055+6,358+12.7%+16.3%(% of Sales)(61.0%)(57.5%)(63.1%)(60.6%)(+2.1%)(+3.1%)+10.4%

SG&A
Expenses

14,15540,248

14,841

41,667(% of Sales)(53.6%)(59.3%)(51.5%)(55.7%)

Operating Profit

1,967-1,271

3,336

3,668

(% of Sales)(7.4%)-(11.6%)(4.9%)

5

Net Sales

16,71449,065

16,92949,733

+215

+668

+1.3%

6

Gross Profit

8,393

24,581

8,490

24,646

+97

+65

+1.2%

+0.3%

(50.2%)(50.1%)(50.2%)(49.6%)(±0.0%)(-0.5%)

3

4(% of Sales)

7

SG&A
Expenses

7,418

22,508

7,292

21,812(% of Sales)(44.4%)(45.9%)(43.0%)(43.9%)+686+1,369

-126

975

2,073

1,198

2,834

(5.8%)(4.2%)(7.1%)(5.7%)

9

Net Sales

3,130

14,6104,701

12,434+1,571

10Gross Profit

1,323

5,707

2,016

5,177

+693

(42.3%)(39.1%)(42.9%)(41.6%)

Operating Profit(% of Sales)

11

12

SG&A
Expenses

1,743

6,795

2,159

6,452

(% of Sales)(55.7%)(46.5%)(45.9%)(51.9%)-420-1,088-143-1,275----

Operating Profit(% of Sales)

Note: Calculated using simple sums.

+1,419+4,939

+4.8%

+3.5%

(-2.1%)(-3.6%)+69.6%(+4.2%)(% of Sales)8© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

38

Q3

+223

+416

+277

-696

+761

+1.4%

-1.7%

-3.1%

(-1.4%)(-2.0%)+22.9%+36.7%(+1.3%)(+1.5%)-2,176+50.2%-14.9%-530+52.4%-9.3%(+0.6%)(+2.5%)

-343

-187

+23.9%-5.0%(-9.8%)(+5.4%)

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.