OMO-type ONWARD CROSSET STORE at Lalaport TOKYO-BAY

FY02/22 Q1 Results Presentation Supplement
July 8, 2021
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Contents

P.2-3・・・

FY02/22 Q1 Consolidated Results

P.4-5

・・・

Results by Group Company

P.6・・・

Early Adoption of New Revenue Recognition Standard

P.7-8・・・

Financial Situation

P.9-12・・・

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

1

FY02/22 Q1 Consolidated Results□ Sales were steady until the first half of April, but fell sharply from the second half

onward owing to the reissuance of the state of emergency declaration. This,
combined with the impact of the withdrawal from unprofitable businesses and theclosure of underperforming stores in Japan and overseas in FY02/21 resulted inlimited sales growth.

□ As for profits, the global business reforms kicked off in the fall of 2019 yielded

results, with a 3.5pp improvement in gross profit margin and a 3.3pp decrease in
SG&A expenses. As a result, the Company returned to profitability at all profit
levels, with operating profit of approximately 1.1 billion yen, recurring profit ofapproximately 2 billion yen, and net income of approximately 2.1 billion yen.

□ By Group company, Onward Kashiyama (nonconsolidated), Domestic Subtotal(excl. Onward Kashiyama), and Overseas Total all achieved operating profit thanks
to progress in business reform, digitization, and other growth strategies. As of theend of Q1 FY02/22, the Company completed business reforms at its Italian
operations, which had previously suffered large operating losses among its
overseas businesses.

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

2

FY02/22 Q1 Consolidated Results(Million yen)

Adjusted Q1 FY02/21
figures to reflect change inrevenue recognition
standard*2

Q1
FY02/22

FY02/21Q1 (unadjusted*3)

ChangeYoY

FY02/21

Sales

46,022

43,719+2,303105.3%

42,653Gross Profit

23,78021,082+2,698112.8%

19,516(% of Sales)

51.7%

48.2%

+3.5%

SG&A Expenses

22,632

22,933-301(% of Sales)

49.2%

52.5%

-3.3%

Operating Profit

1,147-1,851+2,998(% of Sales)

2.5%

-5

Recurring Profit

1,976-1,746+3,722--1,746

6Net Income

2,060-2,417+4,477--2,4177EBITDA*1

2,447-304+2,751--304

123445.8%
98.7%

21,36750.1%--1,851-

1 EBITDA = operating profit + depreciation and amortization
2 Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22
Adjustments: +1,066 million yen for sales, +1,566 million yen for gross profit and SG&A expenses, respectively
3 Unadjusted figures for Q1 FY02/21 correspond to the Q1 FY02/21 figures as shown in the Summary of Financial Results for Q1 FY02/22© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

3

FY02/22 Q1 Results by Group Company(Million yen)

Q1
Sales
FY02/22

Operating Profit

FY02/21

ChangeFY02/22

FY02/21

Change1

Onward Kashiyama(Nonconsolidated)

22,435

17,560+4,875

770-1,573+2,343

2Onward Trading

4,568

5,466-898

875

1,215-340

Island1,344

964+380-70-305+235

Chacott

2,148

1,062+1,086

59-404+463

Creative Yoko

1,090

833+257

48-29+77

Yamato4,714

4,476+238

292

346-54

7

Other

3,338

3,235+103-144-25-1198

Domestic Subtotal(Excl. Onward Kashiyama)

17,202

16,036+1,166

1,060

798+262

Europe7,301

10,468-3,167286-389+675

125

131-6-132

-166

+34

1,146

1,085+6150

121-7171

1,029-958-191

116-307

8,643

12,713-4,070

13-318+331

46,022

43,719+2,303

1,147-1,851+2,998

3
4
5
6

9
10
11
12
13
14

DomesticOverseas

North AmericaAsia
Guam Resort
Overseas TotalConsolidated Total

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions
Note: Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

4

FY02/22 Q1 Results by Group Company□Onward Kashiyama+4,875▲4,070• Execution of business reforms
such as closing unprofitablestores.

□Domestic group companies• ChacottStrong sales of ballet, cosmetics, andwellness products, which cater to newlifestyles.
• Creative Yoko
Products for home consumption suchas pet-related products were popular.

□Overseas group companies• Reforms of Italian operations completed,making European operations profitable.

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

5

Early Adoption of New Revenue Recognition Standard

The new revenue recognition standard will be mandatorily applied for all companies
from fiscal years beginning on or after April 1, 2021. The Group will adopt the newrevenue recognition standard early starting in FY02/22.

Key impact of the new revenue recognition standard on the GroupFor transactions with department stores, retail sales will be recorded as sales and rent
equivalents will be recorded as SG&A expenses, whereas previously the net amount after
deducting rent equivalents was recorded as sales.
Loyalty point usage fees, which were previously included in SG&A expenses, will beexcluded from sales.
The above changes will not affect operating profit.

The adoption of the new revenue recognition standard will unify the sales
recognition standards that previously differed by sales channel.

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

6

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

FY02/22 Q1 Financial Situation■Consolidated Balance Sheet(Billion yen)

End-Q1 FY02/22
1Current Assets

End-FY02/21

Change

70.2

80.4

-10.2

2

Cash and Deposits

18.6

21.3

-2.7

3

Accounts Receivable

12.6

18.2

-5.6

4

Inventory

29.9

34.3

-4.4

109.2

115.5

-6.3

5

Non-current Assets

6Property, Plant and Equipment

67.3

71.8

-4.5

7

Intangible Assets

10.410.6-0.2

8Investments and Other Assets

31.4

33.0-1.6

179.4

196.0-16.6

120.2

136.5

-16.3

Total Assets
10 Liabilities
911

Accounts Payable

17.5

21.9

-4.4

12

Loans Payable

76.5

78.0

-1.5

59.2

59.5

-0.3

13

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

7

FY02/22 Q1 Financial Situation■Consolidated Cash Flows(Million yen)

Q1
FY02/22

FY02/21

Change1 CF from Operating Activities

2,188-15,445+17,633

2 CF from Investing Activities-1,662

5,243-6,905

3 CF from Financing Activities-3,707

16,169-19,876

4 Balance of Cash and Equivalents

18,59034,755-16,165■Capex(Million yen)

Q1
FY02/22

FY02/21

Change5 Capex

1,311

1,546-235

6 Depreciation

1,207

1,406-199■Metrics(1,000s of shares)

End-Q1 FY02/22
7 Shareholders' Equity Ratio
8 Shares issued
9

Average number of shares issued
during the period (excl. treasury shares)

End-FY02/21

Change

32.8%

28.9%

+3.9%

157,922

157,922-135,605

135,091+514© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

8

DATA BOOK

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

DATA BOOK FY02/22 Q1 Results
Sales by Channel
Despite the planned scale back of website traffic to stabilize operations for the complete replacement of the inhouse e-commerce system, e-commerce sales of domestic group companies using e-commerce grew 5.1%
YoY while the e-commerce ratio remained above 30%. Total consolidated e-commerce sales, including
overseas sales, amounted to approximately 11 billion yen.

Department
Stores8,9761 Onward Kashiyama

Shopping Centers
and Other

Physical Stores
Total

Directly Managed
E-Commerce

6,648

15,624

6,171

Other ECommerce
Platforms

640

E-Commerce
Total

E-Commerce
Ratio

Total Sales

6,811

22,435(Million yen)
DirectlyManaged
E-Commerce
Ratio

30.4%

90.6%

2% of sales

40.0%

29.6%

69.6%

27.5%

2.9%

30.4%

100.0%

3

YoY

127.2%

194.6%

149.2%

92.3%

160.8%

96.1%

127.8%-10.0%

-3.8%

2,338

5,151

7,489

2,907

561

3,468

10,957

31.7%

83.8%

Total of Domestic Group Companies

11,314

11,79923,1139,078

1,201

10,27933,392

30.8%

88.3%

% of sales

33.9%

35.3%

69.2%

27.2%

3.6%

30.8%

100.0%

YoY

125.9%

162.2%

142.1%

102.1%

135.7%

105.1%

128.2%

-6.8%

-2.6%

Eight Domestic Subsidiaries
4
Using E-Commerce *1
5 Using E-Commerce*
6
7

1 Domestic Subsidiaries Using E-Commerce (Island, Tiaclasse, Onward Personal Style, Chacott, Creative Yoko, Yamato, Intimates, KOKOBUY)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

9DATA BOOK FY02/22 Q1 Results

Results by Group Company
Onward Kashiyama (Nonconsolidated)

Domestic Subtotal (Excl. Onward Kashiyama)

Q1
FY02/221234

FY02/21

Overseas Total(Million yen)

Q1
ChangeYoY

FY02/22

FY02/21

Q1
ChangeYoY

FY02/22

FY02/21

ChangeYoY

Sales

22,435

17,560+4,875127.8%

17,202

16,036+1,166107.3%

8,643

12,713-4,070

68.0%

Gross Profit

13,076

10,119+2,957

129.2%

8,439

7,564+875

111.6%

3,352

4,914

-1,562

68.2%(% of Sales)

58.3%

57.6%

+0.7%

49.1%

47.2%

+1.9%

38.8%

38.7%

+0.1%

SG&A
Expenses

12,306

11,692+614

7,379

6,766+613

3,339

5,232

-1,893(% of Sales)

54.9%

66.6%

-11.7%

42.9%

42.2%

+0.7%

38.6%

41.2%

-2.6%

OperatingProfit

770-1,573+2,343

1,060

798+262

13-318+331(% of Sales)

3.4%

-

6.2%

5.0%

+1.2%

0.2%

-

105.3%-

109.1%

132.8%

63.8%-Note: Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22
Note: Figures for Domestic Subtotal (Excl. Onward Kashiyama) and Overseas Total are simple sums before consolidated eliminations© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

10DATA BOOK FY02/22 Q1 Results(Million yen)

Q1
Breakdown of SG&A expenses

FY02/22

1 Personnel
2 Rent3 Transportation
4 Promotion and Advertising
5 Depreciation
6 OtherTotal SG&A expenses

78

Extraordinary loss adjustment

9(Reference) Effective SG&A expenses

FY02/21

8,905
5,987
1,602
1,501
902
3,735
22,632779
23,411

Change

9,842
4,672
1,587
1,715
999
4,11822,933
2,409
25,342

YoY-937+1,315+15-214-97-383-301-1,630-1,931

90.5%
128.1%
100.9%
87.5%
90.3%
90.7%
98.7%
32.3%
92.4%

Note: Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22

Breakdown of non-operating ｉ ncome/expenses

60515
282
473
-107
-25-316
829

1011116226-117-22-120
104-4-11+399
+282
+247
+10-3
-196+725

60.0%
0.0%
444.0%
209.3%
91.5%
113.6%
263.3%
797.1%

22 Loss on sales of affiliated companies

4,818
63
2,944-2,027

1,994-+2,824+63+2,944-2,027

241.6%-

23 Loss on liquidation of affiliated companies-1,968--1,968--779-155-2,420-452+1,641
+297

32.2%
34.3%

--458

+458

-

02,895-7-1,346+7+4,241

0.0%-

10 Interest income
11 Dividend income
12 Foreign exchange gains
13 Subsidy income
14 Other non-operating income
15 Interest paid
16 Loss on equity method investments
17 Other non-operating expenses

Non-operating ｉncome/expenses

18Breakdown of extraordinary income/losses
19 Gain on sales of non-current assets
20 Gain on sales of investment securities
21 Gain on sales of affiliated companies

24 Loss related to temporary closures
25 Impairment loss
26 Loss on valuation of investment securities
27 Other28

Extraordinary income/losses© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

11

DATA BOOK FY02/22 Q1 Results(Million yen)
Q1Results by segment
FY02/221234567891011121314Overseas

ChangeYoY28,926

24,245+4,681

119.3%

Operating Profit

495-1,691+2,186-

Sales

8,875

7,383+1,492

120.2%

Operating Profit723

329+394219.8%

Sales

37,801

31,628+6,173

119.5%

Operating Profit

1,218-1,362+2,580-

Sales

7,878

10,713-2,835

73.5%

Operating Profit

220-527+747-

Sales

343

1,378-1,035

24.9%

Operating Profit-251

42-293-

Sales

8,221

12,091-3,870

68.0%-31-485+454-

Sales

46,022

43,719+2,303

105.3%

Operating Profit

1,147-1,851+2,998-

Sales

Domestic

FY02/21ApparelLifestyleDomestic Total

ApparelLifestyleOverseas Total
Operating Profit

Consolidated Total

Note: Q1 represents December through February for European companies and January through March for US and Asian companies
Note: Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22
Note: Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 10 other companies; 14 companies in total)
Overseas Apparel (8 companies in the JOSEPH Group, J.PRESS, Onward Fashion Trading and 8 other companies; 18 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato, KASHIYAMA DAIKANYAMA, and 6 other companies; 10 companies in total)
Overseas Lifestyle (Onward Beach Resort Guam and 9 other companies; 10 companies in total)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

12

The information in this presentation is not a solicitation to purchase or sell OnwardHoldings 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.