October 5, 2023
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Michinobu Yasumoto, President and CEO
Thank you very much for coming today despite your busy schedule. Now, I would like to explain things inaccordance with 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.

22

Contents

Copyright © ONWARD HOLDINGS CO., LTD.

Contents

Financial Results and Performance Forecast
4
01 Consolidated
Highlights
11
02 FY2023 First Half Consolidated Financial Results
14
03 FY2023 Full Year Consolidated Performance Forecast
17
04 Financial Situation
20
05 Initiative for Human Capital Management
23
06 Initiative for Sustainable Management
26
07 TOPICS
30
08 Appendix© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

33

01
Copyright © ONWARD HOLDINGS CO., LTD.

Consolidated Financial Results andPerformance Forecast Highlights© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

44

FY2023 1H : Consolidated Financial Results Highlights

Net Sales

90.4

bn yen+10.0％ YoY+8.2 bn yen YoY

Operating Profit

Recurring Profit

5.0

4.4

bn yen26.0 x YoY+4.8 bn yen YoY

bn yen6.7 x YoY
+3.8 bn yen YoY

Net Profit

2.9

bn yen6.0 x YoY
+2.4 bn yen YoY➢ In the first half of the year, as a result of our focus on strengthening customer-oriented
product development and sales services, our key brands including Nijyusanku and PET
PARADISE performed well, and new brands such as KASHIYAMA and UNFILO grewsignificantly.

Copyright © ONWARD HOLDINGS CO., LTD.

➢ Customers visiting our physical and online stores increased steadily mainly due to theincreased use of our “CLICK & TRY” OMO service and the improved accuracy of ourmarketing measures utilizing social media. As a result, net sales grew faster than thelatest forecast.
➢ Gross profit margin continued to increase owing to the remarkable results of the global
business reforms and improved efficiency in the product supply chain. Meanwhile, the SG&A
ratio declined markedly partly thanks to increased sales efficiency through the development ofmulti-brand stores.
➢ As a result of the above, operating profit, recurring profit, and net profit all increased
significantly.

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

5First of all, on page 5 of the material, highlights of consolidated financial results for the first half of thecurrent fiscal year are described. Net sales were 90.4 billion yen, an increase of 10%, or 8.2 billion yen year
on year. Operating profit came to 5 billion yen, 26 times higher than in the same period of the previous
fiscal year, or up 4.8 billion yen year on year. Recurring profit was 4.4 billion yen, 6.7 times higher than in
the same period of the previous fiscal year, or an increase of 3.8 billion yen year on year. Net profit
amounted to 2.9 billion yen, 6 times higher than in the same period of the previous fiscal year, or an
increase of 2.4 billion yen year on year. Following the first quarter, major brands such as Nijyusanku and
Pet Paradise continued to perform well through the first half of the year, while new brands such as
KASHIYAMA and UNFILO expanded significantly.

Brand Business
Nijyusanku 【Onward Kashiyama】
Onward Kashiyama’s core brand“Nijyusanku” continued its strong sales
growth. It enhanced sales promotion
celebrating the 30th anniversary of thebrand’s debut and introduced a new
high-grade line “estèta.”1 H Sa l e s

Copyright © ONWARD HOLDINGS CO., LTD.

(YoY)

+

20.3%

UNFILO 【Onward Kashiyama】
It continued to expand due to thedevelopment of highly profitable andunique products and the effects ofdigital promotion such as the
distribution of advertising videos forthe hit product “Jog Pants.” The
number of OMO stores dealing inthis brand also increased.
1 H Sa l e s

1.7 x

(YoY)

KASHIYAMA 【 Onward Personal Style 】

PET PARADISE 【Creative Yoko】

Sales at directly managed storesincreased significantly. The Kichijoji
store, revamped as one of the largest
stores in Tokyo in April 2023, performed
well. Customers increased, and thecustomer unit price also increased.
Businesses for corporate clients also
contributed to a sales increase bywinning deals for company uniforms.

Thanks to the success of opening
new stores, all three stores that
opened in 2023 performed better
than planned. In addition, new hit
products such as carts, leashes,and heat-protection goods
contributed to the increase insales.

1 H Sa l e s
(YoY)

+

19.2%

1 H Sa l e s
(YoY)

+

15.9%

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

33

On page 33, sales of the four key brands and new brands I just mentioned in the first half are described.
Sales of Nijyusanku increased 20% or more. Sales of Pet Paradise grew 16%. Sales of the new brand
UNFILO was 1.7 times higher, an increase of 70%. Sales of KASHIYAMA also increased by more than 19%.
We have brands in various genres, all of which performed well.

FY2023 1H : Consolidated Financial Results Highlights

Net Sales

90.4

bn yen+10.0％ YoY+8.2 bn yen YoY

Operating Profit

Recurring Profit

5.0

4.4

bn yen26.0 x YoY+4.8 bn yen YoY

bn yen6.7 x YoY
+3.8 bn yen YoY

Net Profit

2.9

bn yen6.0 x YoY
+2.4 bn yen YoY➢ In the first half of the year, as a result of our focus on strengthening customer-oriented
product development and sales services, our key brands including Nijyusanku and PET
PARADISE performed well, and new brands such as KASHIYAMA and UNFILO grewsignificantly.

Copyright © ONWARD HOLDINGS CO., LTD.

➢ Customers visiting our physical and online stores increased steadily mainly due to theincreased use of our “CLICK & TRY” OMO service and the improved accuracy of ourmarketing measures utilizing social media. As a result, net sales grew faster than thelatest forecast.
➢ Gross profit margin continued to increase owing to the remarkable results of the global
business reforms and improved efficiency in the product supply chain. Meanwhile, the SG&A
ratio declined markedly partly thanks to increased sales efficiency through the development ofmulti-brand stores.
➢ As a result of the above, operating profit, recurring profit, and net profit all increased
significantly.

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

5

In addition, the use of our original OMO service “Click & Try” continued to expand in the second quarter.
As a result, the number of customers visiting both physical stores and online stores has steadily increased,
which has contributed to the growth of net sales over recent forecasts. The accuracy of marketingmeasures using social media is also improving.
As described in the third paragraph on the profit side, the gross profit margin increased while the SG&A
expense ratio fell significantly. Gross profit margin has been raised as a result of the global businessreforms, or more efficient supply chains in cooperation with business partners. In addition, themanagement of multi-brand stores such as ONWARD CROSSET SELECT has been operating smoothly. As aresult, sales efficiency, such as sales per unit area and sales per sales staff, has increased, and this has led
to a decline in the SG&A expense ratio and a substantial increase in operating profit.

OMO Service “Click & Try”
Multi-Brand Store “ONWARD CROSSET / SELECT”◼ “Click & Try” Service• The number of stores introduced increased to 360, up 50 from the end of the same period last year.
• In the first half of FY2023, net sales at (existing) stores providing this service were 13% higher thanthose in FY2019, which was before the COVID-19 pandemic, and 22 pp higher than those at the stores
not providing the service, which was 9% lower than in FY2019.
◼ ONWARD CROSSET / SELECT• In addition to “Click & Try,” the Company expanded the development of “ONWARD CROSSET /SELECT” (OCS), a multi-brand store.
• With OMO services implemented, it provides a comprehensive selection of Onward Kashiyama brands.
The year-on-year growth in sales for the first half of FY2023 was 21pp higher than the stores excluding
OCS.
▍Changes in the number of stores that introduced
Click & Try and the number of reservations

Copyright © ONWARD HOLDINGS CO., LTD.

Number of Stores

FY2023

FY2022

1H

1H

360

Change310

Adoption rate

51%

38%

Number of reservations(in thousands)

58

29

+13%

72

+29

▍Comparison of net sales between stores that
introduced and have not introduced Click & Try
FY2023

FY2022

1H

1HStores that introduced
the service

113%

96%

Stores that have notintroduced the service

91%

75%

Vs. FY2019 1H© Copyright 2007-2015
HOLDINGS
CO.,LTD.
Effect ONWARD +22%
pt
+21%
pt

31

FY2023 1H% of Change

+50

千点

▍ONWARD CROSSET / SELECT sales comparison

Department
Stores

Shopping
Centers

ONWARD CROSSET SELECT(OCS)

132%

139%

Existing Stores Total excl. OCS

116%

106%

113%

Difference+16% pt+33% pt+21% pt

2 times

Total

134%

Comparison excluding
discontinued brands

AEON MALL Sapporo Hassamu

On page 31 of the material, you will find an explanation of our OMO service “Click & Try,” and the multibrand store ONWARD CROSSET SELECT. The left side shows the trends in the number of stores that haveintroduced Click & Try and the number of reservations. At the end of this first half of the fiscal year, thenumber of stores that had introduced Click & Try reached 360, accounting for more than half of all storeswith an introduction rate of 51%, and the number of backorder reservations was 58,000. Compared to theend of the first half of the previous fiscal year, the number of stores that have introduced Click & Try
increased by 50, with an introduction rate up 13 percentage points, and the number of reservations
doubled. Below that, there is a comparison of the sales of stores that have introduced Click & Try andthose of ones that have not. The sales growth rate of stores, compared to the same period of fiscal 2019,that have introduced Click & Try is 22 percentage points higher than that of ones that have not.
Moreover, if you look at the right side, sales growth of the multi-brand ONWARD CROSSET SELECT stores
was higher than that of other stores by 21 percentage points. In the case of ONWARD CROSSET SELECT
stores over the same period of the previous fiscal year in shopping centers, the difference was 33
percentage points, and even in the case of those in department stores, the difference was 16 percentage
points. Their average was 21 percentage points. In these multi-brand stores, it has become common
practice for one sales staff member to sell products of various brands, and although sales are varied fromhigh to low depending on the characteristics of each brand, an efficient sales system is being established inwhich sales are generated evenly per staff member every month by combining brands. In addition, since
they can sell not only products initially distributed to stores, but also those that are ordered and deliveredfrom the central distribution center in a timely manner while listening to customer requests, there are
increases in sales efficiency and the frequency of customer visits. Our long-established skills in customer
services and sales are combined successfully with DX, which, in our analysis, has double effects ofimproving the operational efficiency of our stores and enhancing the name recognition or usage of ouronline stores, leading to the factors for strong sales.
These are the highlights of the consolidated results for the first half of the year.

FY2023 Full-Year : Performance Forecasts Highlights

Net Sales

189.2

bn yen

+7.5％ YoY
+13.1 bn yen YoY

Operating Profit

11.0

bn yen2.1 x YoY
+5.8 bn yen YoY

Recurring Profit

10.0

bn yen1.9 x YoY
+4.7 bn yen YoY

Net Profit

5.5

bn yen1.8 x YoY
+2.4 bn yen YoY

Copyright © ONWARD HOLDINGS CO., LTD.

➢ As the results in the first-half of the year were better than the latest forecast,
the Company revised its full-year forecast upward again following theannouncement of the first quarter results, while maintaining its second-halfforecast.
➢ As a result, full-year operating profit is expected to be 11 billion yen andexceed 10 billion yen for the first time in 11 years since FY2012.
➢ Recurring profit is forecast to be 10 billion yen, 1.9 times YoY, and net
profit is expected to be 5.5 billion yen, 1.8 times YoY.

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

6

Next, on page 6, it shows the highlights of our full-year performance forecast. This full-year forecast is
prepared by combining the results of the first half of the year and the forecast for the second half of theyear announced in April this year. Our forecast for the second half remains unchanged. In terms of figures,
we expect net sales to be 189.2 billion yen, an increase of 7.5% or 13.1 billion yen from the previous fiscal
year. Operating profit is forecast to be 11 billion yen, 2.1 times higher than in the previous year, or an
increase of 5.8 billion yen. We expect recurring profit to be 10 billion yen, 1.9 times higher than in theprevious year, or an increase of 4.7 billion yen. Finally, net profit is forecast to be 5.5 billion yen, 1.8 times
higher than in the previous year, or an increase of 2.4 billion yen.
This will be the first time in eleven fiscal years since fiscal 2012 that operating profit exceeds 10 billion yen
for a full year.

Trends of Operating Profit and Operating Profit Margin◼ Operating profit in FY2023 is expected to exceed the 10 billion yen level for the first time in
11 years since FY2012.
◼ The operating profit margin in FY2023 is expected to be 5.8%, the highest since FY2012.
5.8％(bn yen)

5.0%

Operating Profit

Operating Profit Margin

4.3%

11.2
3.0%

130
3.4%
3.0％

9.4

2.0%

45億円 1.4%

1.7%

3.8

4.2

5.7

1.0%

2.1%

5.2

11.0

80

1.9%

5.2

4.5

-1.0%

30

▲20

-1.1
-0.6％

-3.1
-1.2％

▲70

Copyright © ONWARD HOLDINGS CO., LTD.

-3.0%

-5.0%
2012
年度

2013
年度

2014
年度

2015
年度

2016
年度

2017
年度

2018
年度

2019
年度

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

7

-20.2
2020

▲120

-11.5％
年度

2021
年度

2022
年度

FY2020

FY2021

FY2022

2023
年度
（予想）
FY2023(Forecast)
Note: New revenue recognition standards havebeen applied since FY2020.

Regarding this, page 7 shows the trends of operating profit and operating profit margin since fiscal 2012,
when our group recorded operating profit of over 10 billion yen for the last time. We made operating
losses for three consecutive years in fiscal 2019, fiscal 2020, and fiscal 2021, partly due to the global
business reforms and the COVID-19 pandemic, giving rise to significant concerns. However, we returned toa surplus of 5.2 billion yen in the previous fiscal year, and forecast to more than double that amount to 11
billion yen in the current fiscal year. Moreover, operating profit margin is forecast to be 5.8%, exceedingthat for fiscal 2012. We expect net sales to decrease from the level in fiscal 2012, mainly due to thewithdrawal from unprofitable businesses and stores as a result of the business reforms and the COVID-19
pandemic. However, it has led to a leaner business structure and an increase in operating profit margin.
Going forward, we recognize that expanding net sales through our growth strategy will be a major issue forthe future. We believe that this will be a turning point for marking a break in restructuring and entering thepromotion phase of our growth strategy.

Net Sales Breakdown by Channel▍Total of Onward Group’s nine domestic companies
Onward Kashiyama, Island, Tiaclasse, Onward Personal Style, Chacott , Creative Yoko, Yamato, Intimates, KOKOBUYFY2023 1H

E-Commerce

Department
Stores30％

32％

Shopping Centers
and Other

38％

Copyright © ONWARD HOLDINGS CO., LTD.

Changes in Onward Kashiyama’s sales breakdown by channel
Shopping
Centers
and Other

E-Commerce

14％

25％
百貨店
Department
75％
Stores75％© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

8

FY2023 1H

FY2018FY2008

Shopping
Centers
and Other20％

E-Commerce
Department
Stores66％

28％

Department
Stores

Shopping 39％
Centers and
Other

33％

Moreover, in order to promote our growth strategy in the future, we have listed the net sales breakdown by channel
in Japan on page 8. The large pie chart shows the net sales breakdown by channel for the nine major Onward Group
companies in Japan in the first half of fiscal 2023. The figure is 32% for department stores, 30% for e-commerce, and
38% for shopping centers and others.
In the bottom row, you can see sales breakdown by channel of Onward Kashiyama, our core operating company. It
was fiscal 2009 when we launched “ONWARD CROSSET” online and made a major push into e-commerce. The
previous fiscal year, fiscal 2008, was the year of the global financial crisis, and we had the structure of still 0% for ecommerce, 75% for department stores, and 25% for shopping centers and others. Since then, we have developed ecommerce in earnest and gradually increased the ratio of e-commerce. In fiscal 2018, about ten years later, justbefore the COVID-19 pandemic, the ratio of e-commerce increased to 14%. Department stores accounted for 66% of
the total, down 10 percentage points from fiscal 2008, but department stores still accounted for two-thirds of thetotal, with shopping centers and others for 20%, which was the structure after about ten years. Over the next five
years, the use of e-commerce increased dramatically due to the COVID-19 pandemic, and we worked on businessreforms to abolish unprofitable stores and create multi-brand ones. As a result, the ratio of e-commerce at Onward
Kashiyama was 28% in the first half of this fiscal year. While the e-commerce ratio in the previous fiscal year was
30%, it decreased slightly in the first half of this fiscal year due to the strong performance of physical stores. On theother hand, the ratio of department stores was 39%, falling under 40% for the first time. This is a 27-percentagepoint reduction from five years ago. SC and others were 33%, or about one-third. Compared to the Group as awhole, Onward Kashiyama still has a slightly higher ratio of department stores, but there is no doubt that thissubstantial change in the Onward Kashiyama’s sales breakdown by channel is significantly related to the change in
the Group’s net sales breakdown by channel in Japan.
We believe that the net sales breakdown by channel, which is approximately one-third each for the first half of thecurrent fiscal year, is highly balanced and that it is easy to respond flexibly to various changes in the businessenvironment. Of course, it is up to customers to decide which market to purchase from, but one of our future
growth strategies is to expand the size of this pie chart while maintaining this balanced net sales breakdown bychannel.
Department stores are very strong outlets for the wealthy, including the new rich. This is something that cannot be
imitated by other sales channels, and therefore, we would like to fully understand the strengths of department store
sales channels and develop a brand strategy that fits them. In addition, the development of shopping centers by
various developers is expected to continue in the city center, not to mention in the suburbs. Therefore, we believethat the development of shopping centers in the city center, suburbs, and local regions is an area where we still havea lot of room to grow, and we would like to make it a major pillar of our growth strategy. As for e-commerce, italready accounts for 30% for the group as a whole. In particular, our own e-commerce ratio is very high at just under
90%, enabling e-commerce that is independent of other companies’ malls. This is the background behind thedevelopment of the Click & Try service, and I believe that e-commerce is our group’s strength. In order for ecommerce to expand steadily in the future, we will surely and steadily expand the contact points of this sales
channel.

Shareholder Returns▍Dividend Policy

The Company views the distribution of profits to shareholders as one of the
management’s highest priority issues, and sets a dividend payout ratio
target of 35% or more, ensuring stable and appropriate distribution of profits
in conjunction with its performance.
Along with the further upward revision of the full-year forecast for net profit, theCompany revised upward the year-end dividend to 17 yen this time, up 1 yenfrom the previous forecast. (up 5 yen from 12 yen in FY2022)▍Dividends

Copyright © ONWARD HOLDINGS CO., LTD.

FY2023
Revised Forecast(October 2023)

Previous Forecast（July 2023）

Initial Forecast(April 2023)

FY2022
ActualDividends per Share (yen)

17

16

14

12

Total Dividends (mil. yen)

2,307

2,171

1,900

1,628

Net Profit (mil. yen)

5,462

5,000

4,000

3,061

Payout Ratio

42.2%

43.4%

47.5%

53.2%

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

9

Next, page 9 is about shareholder returns. As part of our group’s dividend policy, we place one of our top
management priorities on a dividend payout ratio of 35% or higher and a stable, performance-linked, andappropriate distribution of profits.
While the dividend was 12 yen per share in the previous fiscal year, we forecast a dividend of 14 yen per
share and a dividend payout ratio of 47.5%, based on a net profit forecast of 4 billion yen in April of thecurrent fiscal year. Subsequently, when we announced our financial results for the first quarter in July, werevised our net profit forecast to 5 billion yen, and as a result, raised the dividend per share forecast to 16
yen. We have now raised our net profit forecast from 5 billion yen to 5.462 billion yen, and in line with this,we revised our dividend per share forecast to 17 yen, an increase of 1 yen, with a dividend payout ratio of
42.2%. The dividend will be increased by 5 yen from the previous year. As the core of our shareholder
return policy, we would like to continue steadily increasing net profit and strengthening shareholder
returns.

Promote Management that is Conscious of Cost of Capitaland Stock Price■ Approach to financial policies and target financial indicators• Aim to realize returns (profits) in excess of the cost of capital forsustainable improvement of corporate value• Set targets for return on equity (ROE) and return on invested capital(ROIC), keeping in mind the cost of shareholders' equity andweighted average cost of capital (WACC).

Copyright © ONWARD HOLDINGS CO., LTD.

• Demonstrate specific measures (e.g., cash allocation) to achieve
the targets

We plan to disclose the above information together with the updated version
of “ONWARD VISION 2030” and the three-year mid-term management plan,
when the full-year financial results for FY2023 are released in April 2024.

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

10

On page 10, the market’s demand for management that is conscious of the cost of capital and stock prices
has been increasing, and we would like to respond appropriately to this demand. We are scheduled toannounce our financial results for the current fiscal year in early April of next year, when we plan to update
and announce the “ONWARD VISION 2030,” which we announced in April 2021, based on our actual
performance since then. At the same time, we are scheduled to announce our medium-term management
plan for three years from fiscal 2024 to fiscal 2026. In addition, we would like to announce our overall
financial policies and financial strategy such as target financial indicators. The basic approach to that is
described on page 10. First, we aim to achieve returns (profits) that exceed the cost of capital in order toachieve sustainable improvement in corporate value. As a matter of course, while strongly putting this as amain pillar, we intend to firmly set target values for return on equity (ROE) and return on invested capital(ROIC), while being conscious of the cost of shareholders’ equity and weighted average cost of capital(WACC). In addition, we would like to present concrete measures (such as cash allocation) to achieve thesetargets.
Going forward, as we shift gears from restructuring to promoting growth strategies, we would like topresent our Onward group’s approach to financial strategies, such as how to use capital to promotestrategies for various kinds of growth including expansion of store openings, development of products andbrands, promotion of DX, and M&As.

This concludes my explanation on the highlights of consolidated financial results and the consolidated
performance forecast.

02
Copyright © ONWARD HOLDINGS CO., LTD.

FY2023 First Half Consolidated
Financial Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

14
11

FY2023 1H : Consolidated Financial Results◼ Net sales increased to 90.4 billion yen (+10.0%) , up 8.2 billion yen YoY.
◼ Operating profit increased to 5.0 billion yen (26.0 times), up 4.8 billion YoY as aresult of higher gross profit margin (+2.2pp) and a lower SG&A expense ratio(-3.2pp), and the operating profit margin was 5.6% (+5.4pp).
◼ Net profit increased to 2.9 billion yen (6.0 times), up 2.4 billion yen YoY.
◼ EBITDA increased to 7.4 billion yen (2.6 times), up 4.6 billion yen.
1H Results

12
3

Copyright © ONWARD HOLDINGS CO., LTD.

4

5

6

7

(Million yen)

FY2023

FY2022

Change% of Change

Previous
Forecasut

Change% of Change

Net Sales

90,411

82,166+8,245+10.0%

90,000

+411

+0.5%

+6,417+14.3%

50,980+172(+2.2%)(56.6%)

Gross Profit

51,152

44,735（% of Net Sales）(56.6%)(54.4%)

SG&A Expanses

46,13044,542（% of Net Sales）(51.0%)(54.2%)

Operating Profit

5,022

193

（% of Net Sales）(5.6%)(0.2%)

Recurring Profit

4,412

654

（% of Net Sales）(4.9%)(0.8%)Net Profit

2,862

476

（% of Net Sales）(3.2%)(0.6%)EBITDA※

7,390

2,838

（% of Net Sales）(8.2%)(3.5%)+1,588+4,829+3.6%

46,980(- 3.2%)(52.2%)+2502.1%

4,000(+5.4%)(4.4%)+3,758+574.6%3,400(+4.1%)(3.8%)+2,386+501.3%2,400(+2.6%)(2.7%)+4,552+160.4%6,600(+4.7%)(7.3%)+0.3%(+0.0%)- 850- 1.8%(- 1.2%)+1,022+25.6%+1,012+29.8%+462+19.3%+790+12.0%(+1.2%)(+1.1%)(+0.5%)(+0.9%)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

12*Note: EBITDA = operating profit + depreciation and amortization.

Osamu Sato, Managing Director in charge of Finance, Accounting, Investor Relations
I am Sato. I will explain the details of the financial results on page 12 and after.
The orange area indicates the actual figures for the first half of the current fiscal year. Some part may
overlap with Yasumoto’s explanation, but I will trace the numbers. Item No. 1 in the table below, net sales
were 90.4 billion yen, an increase of 10% year on year, or 8.2 billion yen. No. 2 gross profit was 51.2 billion
yen, up 14.3% year on year, or 6.4 billion yen. The gross profit margin improved by 2.2 percentage points
from the same period of the previous year to 56.6%, due to the remarkable results of the global businessreforms, the improvement in the efficiency of the product supply chain, and the suppression of discountsales. No. 3 SG&A expenses were 46.1 billion yen. Although the amount increased 1.6 billion yen year on
year, the ratio to sales improved 3.2 percentage points. Fixed costs are compressed, and we are controlling
expenses appropriately. As a result, No. 4 operating profit was 5 billion yen, 26 times higher than in thesame period of the previous year, and the operating profit margin also improved by 5.4 percentage points.
No. 5 recurring profit was 4.4 billion yen, 6.7 times higher than in the same period of the previous year. No.
6 net profit was 2.9 billion yen, 6 times higher than in the same period of the previous year. No. 7 EBITDA
was 7.4 billion yen, an increase of 160.4% year on year.

FY2023 1H : Results by Segment◼ In the domestic business, both the apparel and lifestyle segments increased
sales. Operating profit increased significantly to 8.2 times in the apparelsegment, and by 36% in the lifestyle segment.
◼ In the overseas business, sales increased by 16% YoY, and operating
profit/loss improved by 0.5 billion yen, although an operating loss remained.

1H(Million yen)

1

2

Copyright © ONWARD HOLDINGS CO., LTD.

3

4

5

ApparelLifestyleDomestic Total

Overseas Total

Consolidated Total

FY2023

FY2022

ChangeResults% of Change

Previous
Forecasut

Change% of Change

Net Sales

65,90959,704+6,205+10.4%

65,922- 13- 0.0%

Operating
Profit3,968

484+3,484+719.8%

3,279

+689

+21.0%Net Sales

20,402

19,155+1,247+6.5%

20,557- 155- 0.8%

Operating
Profit

2,022

1,484

+538

+36.3%

1,968

+54

+2.7%

Net Sales

86,311

78,859+7,452+9.4%

86,479- 168- 0.2%

Operating
Profit

5,990

1,968

+4,022+204.4%

5,247

+743

+14.2%Net Sales

9,002

7,733

+1,269+16.4%

8,613

+389

+4.5%

Operating
Profit- 640- 1,132

+492

- 728

+88

Net Sales

90,411

82,166+8,245+10.0%

90,000

+411

+0.5%

Operating
Profit5,022

193+4,829+2502.1%

4,000+1,022+25.6%

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

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

13

Page 13 shows the financial results by segment for the first half.
Here, the orange area also indicates actual figures. In Japan, sales increased in both the apparel andlifestyle segments. Operating profit for the apparel segment increased to 4 billion yen, 8.2 times higher
than in the same period of the previous fiscal year and 36% year on year to 2 billion yen for the lifestylesegment, achieving a significant increase in profit. Moreover, overseas sales grew 16% year on year,
improving the operating profitability by 500 million yen, despite the remaining operating losses.

These are the explanations for actual results of the first half.

03
Copyright © ONWARD HOLDINGS CO., LTD.

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

17
14

FY2023 Full-Year : Consolidated Performance Forecast◼ Full-year performance forecasts are a combination of the first-half financial results and theprevious second-half forecasts (announced in July 2023).
◼ Net sales are expected to be 189.2 billion yen (+7.5%), up 13.1 billion yen, operating profit
is expected to be 11 billion yen (2.1 times), up 5.8 billion yen, and net profit is expected tobe 5.5 billion yen (1.8 times), up 2.4 billion yen from the previous fiscal year.
Full-Year Forecast

12
3

Copyright © ONWARD HOLDINGS CO., LTD.

4

5

6

7

FY2023

FY2022
ActualChange% of Change

Previous
Forecasut

Change% of Change

Net Sales

189,211

176,072+13,139+7.5%

188,800

+411

+0.2%

Gross Profit

105,952

96,751+9,201+9.5%

105,780+172（% of Net Sales）(56.0%)(54.9%)(+1.1%)(56.0%)

SG&A Expanses

94,93091,537（% of Net Sales）(50.2%)(52.0%)

Operating Profit

11,022

5,214（% of Net Sales）(5.8%)(3.0%)

Recurring Profit

10,0125,319（% of Net Sales）(5.3%)(3.0%)Net Profit

5,462

3,061

（% of Net Sales）(2.9%)(1.7%)EBITDA※

16,10010,373（% of Net Sales）(8.5%)(5.9%)+3,393+3.7%

95,780(- 1.8%)(50.7%)+111.4%10,000(+2.8%)(5.3%)+4,693+88.2%

9,000(+2.3%)(4.8%)+2,401+78.4%

5,000(+1.2%)(2.6%)+55.2%

15,100(+2.6%)(8.0%)+5,808+5,727+0.2%(+0.0%)- 850- 0.9%(-0.5%)+1,022+10.2%+1,012+11.2%(+0.5%)(+0.5%)

+462

+9.2%
(+0.3%)+1,000+6.6%(+0.5%)*Note:ONWARD
EBITDA = operating
profit + depreciation
and amortization.
© Copyright 2007-2015
HOLDINGS
CO.,LTD.

15

Next, on page 15, I will explain the full-year performance forecast.
As Yasumoto stated earlier, we have revised up our announced full-year forecast again due to these actual
results for the first half exceeding the previous forecast. For the revised announced forecast, No. 1 net
sales are 189.2 billion yen, up 7.5% year on year. As a result of gross profit margin and SG&A ratio
improving 1.1 percentage points year on year to 56% and 1.8 percentage points to 50.2%, respectively, No.
4 operating profit is forecast to be 2.1 times higher than in the previous fiscal year at 11 billion yen, No. 6
net profit 1.8 times to 5.5 billion yen, and No. 7 EBITDA growing 55% to 16.1 billion yen.

FY2023 Full-Year : Performance Forecasts by Segment◼ In the domestic business, in the apparel segment, net sales are expected to increase by
9.4 billion yen (+7.2%) and operating profit by 4.4 billion yen (1.9 times) from the previous
fiscal year. In the lifestyle segment, net sales are expected to increase by 2.5 billion yen(+6.6%) and operating profit by 0.7 billion yen (+26.3%) from the previous fiscal year.
◼ In the overseas business, net sales are expected to increase by 2.5 billion yen (+14.5%).
Although an operating loss remains, operating profit/loss is expected to improve by 0.7
billion yen.
Full-Year Forecast

12

Copyright © ONWARD HOLDINGS CO., LTD.

3

4

5

ApparelLifestyleDomestic Total

Overseas Total

Consolidated Total

FY2023

FY2022
Actual% of Change

Previous
Forecasut

Net Sales

138,877

129,525+9,352+7.2%

139,113- 236

Operating
Profit9,421- 0.2%

5,000+4,421+88.4%

8,960

+461

Net Sales+5.1%

40,43137,926+2,505+6.6%

40,481- 50- 0.1%

Operating
Profit

3,461

2,741

+720

+26.3%

3,239

+222

+6.9%

Net Sales

179,308

167,451+11,857+7.1%

179,594- 286- 0.2%

Operating
Profit12,882

7,741+5,141+66.4%

12,199

+683

+5.6%

Net Sales

19,743

17,250+2,493+14.5%

19,358

+385

+2.0%

Operating
Profit- 407- 1,090

+683

- 300

- 107

Net Sales

189,211

176,072+13,139+7.5%

188,800

+411

+0.2%

Operating
Profit11,0225,214+5,808+111.4%10,000+1,022+10.2%

ChangeChange% of Change

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

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

16

Page 16 shows the full-year performance forecast by segment.
Net sales in the domestic apparel segment are forecast to increase by 9.4 billion yen year on year, while
operating profit by 4.4 billion yen. Net sales in the domestic lifestyle segment are forecast to increase by
2.5 billion yen year on year, while operating profit by 700 million yen. For overseas, net sales are forecast
to increase by 2.5 billion yen, improving the operating profitability by 700 million yen despite theremaining operating losses.

04
Copyright © ONWARD HOLDINGS CO., LTD.

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

20
17

FY2023 1H : EBITDA, Net Assets, Shareholder's Equity Ratio,
Current Ratio◼ EBITDA increased to 7.4 billion yen, up 4.6 billion yen YoY.
◼ Net assets decreased by 5.0 billion yen from the end of the previous fiscal year due to thedecrease in minority interests.
◼ The shareholder's equity ratio was 46.5%, down 0.5 points from the end of the previous

fiscal year.
◼ The current ratio remained above 100%. It was 15 points lower from the end of the previous

fiscal year due to an increase in borrowings.
##
億円▍Shareholders’ Equity Ratio▍EBITDA億円
FY2023
1H

FY2022
1H

7,390

Copyright © ONWARD HOLDINGS CO., LTD.

億円

2,838

Change+4,552% of Change+160.4%▍Net Assets

End-FY2023
End-FY2022
1H

46.5%

47.0%

Change- 0.5%▍Current Ratio

End-FY2023
1H

End-FY2022

80,02985,073

Change-5,044% of Change- 5.9%

End-FY2023
End-FY2022
1H

102.2%

117.2%

Change- 15.0%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

18

On page 18, I would like to explain our financial situation in the first half of the current fiscal year.
As mentioned above, EBITDA was 7.4 billion yen, 2.6 times higher than in the same period of the previous
year.
Net assets decreased by approximately 5 billion yen from the end of the previous fiscal year to 80 billion
yen, mainly due to the payment of dividends.
The shareholders’ equity ratio decreased by 0.5 percentage points to 46.5% from 47% at the end of theprevious fiscal year, but remained at an appropriate level.
Although the current ratio temporarily decreased due to an increase in short-term borrowings, it remained
at 100% or higher, which was the benchmark for safety.

FY2023 1H : Cash Flows, Capital Expenditures,
Depreciation and Amortization▍Cash flows

##

●●

##
◼ Cash flows provided by operating activities amounted to億円
1.1 billion yen mainly
due to an
億円
億円

increase in profit before income taxes and an increase in inventories.
◼ Cash flows used in investing activities amounted to 1.9 billion yen mainly due to theacquisition of investment securities.
◼ Cash flows used in financing activities amounted to 1.0 billion yen mainly due to increase(decrease) in borrowings and the payment of dividends.

▍Capital Expenditures◼ Capital expenditures were 1.6 billion

yen, down 0.3 billion yen YoY.
◼ Carefully select investments such as

Copyright © ONWARD HOLDINGS CO., LTD.

those related to DX and OMO tomake efficient investments.

FY2023
1H

Capex▍Depreciation and Amortization◼ Depreciation and Amortization were

2.0 billion yen, down 0.3 billion yen
YoY.

## 1,641
億円

FY2023
1H

Depreciation
andAmortization

1,957

FY2022

1,918

FY2022

2,243

Change- 277

Change- 286% of Change- 14.4%% of Change- 12.8%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

19

Page 19 shows cash flows.
Cash flows provided by operating activities were 1.1 billion yen mainly due to an increase in profit before
income taxes despite expenses incurred in purchasing fall and winter clothes.
Cash flows used in investing activities were 1.9 billion yen, mainly due to the acquisition of investment
securities of WEGO Co., Ltd., with which we announced a business alliance.
Cash flows used in financing activities were 1 billion yen due to changes in borrowings and dividends paid.
Capital expenditures were 1,641 million yen made in the first half of fiscal 2023. The breakdown is asfollows: investment in ordinary sales facilities and distribution facilities amounted to approximately 800
million yen, and investment in IT approximately 600 million yen. For capital expenditures, we will continue
to carefully select the content, assess the return on investment, and implement it efficiently.
That’s all for my explanation.

05
Copyright © ONWARD HOLDINGS CO., LTD.

Initiative for Human CapitalManagement© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

23
20

Michinobu Yasumoto, President and CEO
Now, I will continue to explain our initiatives for human capital management and sustainable managementfrom page 20 onwards.

Initiative for Human Capital Management◼ Commitment to Diversity“Introduction of the Mentor System” topromote empowerment of female employees
In order to nurture female senior
management candidates, certain
executive officers (mentors) assist female
managers (mentees) in solving careerdevelopment issues and overcoming
problems through interactive dialogue
and support their personal growth.

Copyright © ONWARD HOLDINGS CO., LTD.

Initiative to promote understanding of
LGBTQ(Onward Corporate Design)
Onward Corporate Design Co., Ltd. holds
LGBTQ seminars each for all employees
and managers. They established acontact accessible for LGBTQ minorities.

© Copyright
24 2007-2015 ONWARD HOLDINGS CO.,LTD.

21

Human capital management is regarded as one of the most important issues of our company’s
management, and we are promoting initiatives from various angles including the Board of Directors.
One of them is our commitment to diversity. In order to develop female candidates for senior management
for the promotion of empowerment of female employees, we have introduced a mentor system in which
executives act as mentors to assist female managers (mentees) in solving career development issues andovercoming problems through interactive dialogue. The executive in charge and, in some cases, I myself
participate in this, and we are already working every month to develop future female executive candidates.
In addition, as an initiative for understanding LGBTQ, Onward Corporate Design, the core company of thecorporate business established on September 1, has held LGBTQ seminars for all employees and managers,and has started activities such as the establishment of accessible contact points.

Initiative for Human Capital Management◼ Work Style Design
Promotion of childcare leave by
male employees

In September 2022, the Company
introduced the ”Work Interval System”
which ensures 11 hours between the finish
time the previous day and the start time
the next day. Ensuring that employees
take an adequate rest and sleep, we aim
to help them improve their workstyles
while achieving work-life balance.

Copyright © ONWARD HOLDINGS CO., LTD.

The Company held Pre-Dad/Mom
Seminars and individual interviews to
encourage male employees to takechildcare leave.
In FY2023, of male employees, whotook child care leave, two took longterm leave of 10 months to 1 year.

Work interval system© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

22

Page 22 shows our work style reform initiative “Work Style Design.”
One of them is the promotion of childcare leave by male employees. It is steadily starting to take root, as
two of the male employees who took childcare leave this fiscal year already took a very long one of ten
months to one year.
In September of last year, moreover, we introduced the “work interval system,” which allows employees tosecure more than 11 hours between the finish time of the previous day and the starting time of the nextday, leading to a better work-life balance for employees.

06
Copyright © ONWARD HOLDINGS CO., LTD.

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

26
23

Initiative for Sustainable Management◼ Expansion of Onward Green
Campaign◼ Launched “Upcycle Action” forcollected clothing

The Onward Green Campaign aim s toestablish an apparel circulation system byrecycling and reusing used apparel items .
In the first half of FY2023, the number ofapparel items collected increased 23%
YoY. About 7.3 million items have beencollected so far.

The Company started Upcycle Action to create
new value by making use of collected clothing
items.
It proposes a new circular economy throughexhibitions and sales events.

Copyright © ONWARD HOLDINGS CO., LTD.

Collected clothing items are recycled into blankets and donated© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

24

Sustainable management is described on pages 24 and 25.
On the left side of page 24, we will steadily expand the “Onward Green Campaign,” which collects,
recycles, and reuses clothing, through the continuous efforts since fiscal 2009. In the first half of this fiscal
year, the number of clothing items collected increased by 23% year on year, and we have collected
approximately 7.3 million items in total.
The collected clothing is recycled into blankets, work gloves, solid fuel, etc., and this fiscal year we started
a new initiative called “Upcycle Action” to upcycle the collected clothing as fashion items and holdexhibition and sales events. We are now aiming for the evolution of sustainable management.

Initiative for Sustainable Management◼ Expansion of Made-to-Order
Production◼ Utilization of Recycled Materials

For the core men’s brand “Gotairiku,” theproportion of made-to-order suits in thesales of suits is now 80%, up from 32% in
FY2019, contributing to the reduction of
unnecessary inventory.

The knit shoe brand “steppi” is produced byusing recycled materials from used plastic
bottles and plastic waste. A dedicatedshopper, which serves as a laundry net for
steppi, is also made of sustainable
materials.

Copyright © ONWARD HOLDINGS CO., LTD.

28

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

25

In addition, as described on page 25, we are focusing on initiatives to reduce wasteful inventory by
expanding our made-to-order business and production by order in our usual sales activities.
While the business model of creation after sales has been advanced by KASHIYAMA, the key men’s brand“Gotairiku” sees the ratio of made-to-order in net sales of suits increasing to 80% from 32% in fiscal 2019.
Gotairiku used to be a ready-to-wear brand, but recently it has been transformed into a made-to-orderone.

Moreover, the knit shoe brand “steppi” is growing rapidly now. This steppi utilizes recycled materials as
materials for products themselves. The shoes are produced by recycled materials derived from used plastic(PET) bottles and plastic waste and a dedicated shopper that serves as a laundry net for steppi is also madeof sustainable materials. In this way, we would like to expand our activities to incorporate sustainable
management ideas into our regular planning, production, and sales activities.

07
Copyright © ONWARD HOLDINGS CO., LTD.

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

29
26

Finally, I would like to introduce three recent topics on page 26 and after.

Commitment to Further Growth of NIJYUSANKU,
Celebrating Its 30th Anniversary◼ Launch of a new brand “estèta”

NIJYUSANKU chose actress Anne as its
brand ambassador to celebrate the 30th
anniversary of its launch. The branddevelops various sale promotional
activities on a global scale.

"estèta," a new high-grade line debuted.
We produce this brand mainly in garment
factories in Japan by taking advantage ofour material procurement capabilities andproduction networks.

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Strengthening sales promotion© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

27

Page 27 describes our initiatives to further grow Onward Kashiyama’s core brand “Nijyusanku,” which iscelebrating its 30th anniversary.
We have started new growth initiatives for the next 10, 20 and 30 years. One of them is the enhancementof sales promotion, and on the occasion of our 30th anniversary, we have appointed actor Anne as ourbrand ambassador. Starting this fiscal year, we will promote the brand globally, not only in Japan but also in
Asia, using various media including online and real media. We would like to increase our fan base, including
the new generation of customers for “Nijyusanku.”
On the right is the start of “estèta.” In order to meet the diverse needs of customers for our group,
including those for “Nijyusanku,” we have launched it as a new line even higher a grade than “Nijyusanku.”
We are now starting to roll it out mainly to department stores with refined taste in the city center, andmaking good progress. Moreover, we would like to promote the development of the “Made in Japan”
brands, focusing on domestic sewing factories.

Strengthening Corporate Business
On September 1, 2023, Onward Trading Co., Ltd. and Onward Creative Center Co., Ltd.
merged to form a new company, Onward Corporate Design Co., Ltd., as a core businesscompany responsible for corporate business.
It combines the extensive know-how in the uniform business and others and strong customer
base of former Onward Trading and the apparel-based spatial design capabilities of former
Onward Creative Center to provide comprehensive designs for clients.
Space Create Business : for Kurashiki Coffee Co., Ltd.
Uniform Business : The first uniform of ANA Holdings Inc.’s newinternational brand “Air Japan”

Copyright © ONWARD HOLDINGS CO., LTD.

Sales promotion business : for FANCL CORPORATION© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

28

On page 28, we will strengthen our “corporate business,” which is also described in “ONWARD VISION
2030.”We merged the former Onward Trading Company and the former Onward Creative Center on September 1
this year to form Onward Corporate Design Co., Ltd., a core operating company for corporate business.
Former Onward Trading Company has a long history of corporate business, including uniforms and sales
promotion goods, and has a wide sales base of corporate clients. By combining the know-how of theformer Onward Trading Company with that of the former Onward Creative Center, which handles thespatial design of fashion shops, etc., we have established a new company with the aim of strengthening
our services to support the total corporate branding of our clients.

Support of the Japan National Team in the Rugby World Cap
France 2023
◼ Onward Personal Style Co., Ltd. signed an official supporter agreement with the Japan Rugby
Football Union to support the 2023 Japan National Rugby Team.

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Through the made-to-order brand “KASHIYAMA”, we provide original model suits to all playersof the Japan National Rugby Team.

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

29

Finally, on page 29, we are supporting Japan’s national team for Rugby World Cup 2023 in France throughour made-to-order brand KASHIYAMA. As an official supporter, we have signed a contract with the Japan
Rugby Football Union to provide all players of the Japan National Team with original model suits.
I have described three recent topics related to our group.
This concludes my explanation.

08
Copyright © ONWARD HOLDINGS CO., LTD.

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

33
30

OMO Service “Click & Try”
Multi-Brand Store “ONWARD CROSSET / SELECT”◼ “Click & Try” Service• The number of stores introduced increased to 360, up 50 from the end of the same period last year.
• In the first half of FY2023, net sales at (existing) stores providing this service were 13% higher thanthose in FY2019, which was before the COVID-19 pandemic, and 22 pp higher than those at the stores
not providing the service, which was 9% lower than in FY2019.
◼ ONWARD CROSSET / SELECT• In addition to “Click & Try,” the Company expanded the development of “ONWARD CROSSET /SELECT” (OCS), a multi-brand store.
• With OMO services implemented, it provides a comprehensive selection of Onward Kashiyama brands.
The year-on-year growth in sales for the first half of FY2023 was 21pp higher than the stores excluding
OCS.
▍Changes in the number of stores that introduced
Click & Try and the number of reservations

Copyright © ONWARD HOLDINGS CO., LTD.

Number of Stores

FY2023

FY2022

1H

1H

360

Change310

Adoption rate

51%

38%

Number of reservations(in thousands)

58

29

+13%

72

+29

▍Comparison of net sales between stores that
introduced and have not introduced Click & Try
FY2023

FY2022

1H

1HStores that introduced
the service

113%

96%

Stores that have notintroduced the service

91%

75%

Vs. FY2019 1H© Copyright 2007-2015
HOLDINGS
CO.,LTD.
Effect ONWARD +22%
pt
+21%
pt

31

FY2023 1H% of Change

+50

千点

▍ONWARD CROSSET / SELECT sales comparison

Department
Stores

Shopping
Centers

ONWARD CROSSET SELECT(OCS)

132%

139%

Existing Stores Total excl. OCS

116%

106%

113%

Difference+16% pt+33% pt+21% pt

2 times

Total

134%

Comparison excluding
discontinued brands

AEON MALL Sapporo Hassamu

FY2023 1H : Net Sales by Channel◼ Net sales at physical stores total (department stores + shopping centers and others)
increased by 11% YoY.
◼ E-commerce sales increased by 8% YoY. The e-commerce ratio and the directly
managed e-commerce ratio remained at a high level at 30% and 86%, respectively.

②Eight Domestic Subsidiaries
Using E-Commerce*①Onward Kashiyama
Net Sales% of Sales% of Sales

YoY

Total（①+②）
Net Sales% of Sales

YoY

19,911

38.6%+10.9%

4,894

19.5%

- 0.8%

24,805

32.4%

+8.4%

Shopping Centers and Other

17,171

33.3%+15.3%

12,090

48.2%

+8.7%

29,261

38.2%+12.5%

37,082

71.9%+12.9%

16,984

67.7%

+5.8%

54,06670.5%+10.6%

12,670

24.6%

+9.6%

6,808

27.1%

+4.5%

19,478

25.4%

+7.8%

Directly Managed E-Commerce
Directly Managed E-Commerce Ratio

87.5%

83.9%

86.2%

1,814

3.5%

+9.7%

1,305

5.2%

+5.0%

3,119

4.1%

+7.7%

E-Commerce Total

14,484

28.1%

+9.6%

8,113

32.3%

+4.5%

22,597

29.5%

+7.7%

Total Sales

51,566100.0%+12.0%

25,097100.0%+5.4%

76,663100.0%+9.7%

Other E-Commerce Platforms

Copyright © ONWARD HOLDINGS CO., LTD.

Net Sales

Department Stores

Physical Stores Total*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.

32

YoY

Brand Business
Nijyusanku 【Onward Kashiyama】
Onward Kashiyama’s core brand“Nijyusanku” continued its strong sales
growth. It enhanced sales promotion
celebrating the 30th anniversary of thebrand’s debut and introduced a new
high-grade line “estèta.”1 H Sa l e s

Copyright © ONWARD HOLDINGS CO., LTD.

(YoY)

+

20.3%

It continued to expand due to thedevelopment of highly profitable andunique products and the effects ofdigital promotion such as the
distribution of advertising videos forthe hit product “Jog Pants.” The
number of OMO stores dealing inthis brand also increased.
1 H Sa l e s

1.7 x

(YoY)

KASHIYAMA 【 Onward Personal Style 】

PET PARADISE 【Creative Yoko】

Sales at directly managed storesincreased significantly. The Kichijoji
store, revamped as one of the largest
stores in Tokyo in April 2023, performed
well. Customers increased, and thecustomer unit price also increased.
Businesses for corporate clients also
contributed to a sales increase bywinning deals for company uniforms.

Thanks to the success of opening
new stores, all three stores that
opened in 2023 performed better
than planned. In addition, new hit
products such as carts, leashes,and heat-protection goods
contributed to the increase insales.

1 H Sa l e s
(YoY)

+

19.2%

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

33

UNFILO 【Onward Kashiyama】

1 H Sa l e s
(YoY)

+

15.9%

FY2023 1H : Operating Profit Change Analysis (YoY)

Change due to gross profit(Billion yen)

+0.9
+0.5
+1.0

+0.4

+0.8

50
5.0

-2.0

+3.3
Change due to SG&A expenses

20

Copyright © ONWARD HOLDINGS CO., LTD.

0.2
2 FY2022 1H
r operatingo profitfitIncrease ingross profit
due toincreasedsales forOnwardKashiyama

Increase ingross profit
due toimprovedgross profit
margin for
OnwardKashiyama

Increase ingross profit
due toincreasedsales forotherdomestic
businesses© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

34

Increase ingross profit
due toimprovedgross profit
margin forotherdomestic
businesses

Increase ingross profit
for overseas
businesses

Decrease inoperatingprofit due toincrease instore rent andother saleslinked
expenses

Increase inoperatingprofit due todecrease in
fixed
expenses

FY2023 1H
operatingprofitFY2023 1H : Results by Company
1H Results
FY20231

2

3

Onward Kashiyama+HD

+147

+0.3%

Operating Profit

3,210

332

+2,878+866.9%

2,401

+809

+33.7%

OnwardNet Sales

7,353

7,228

Corporate Design

Operating Profit

IslandNet Sales

Domestic Apparel Total

7

YamatoDomestic Lifestyle Total

10

Domestic Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

America

Asia

Overseas Subtotal

15

Consolidated Total

+125

+1.7%

+57.2%

750

+72

+9.6%

- 126

-4.2%

2,947

- 103

- 3.5%

- 23

22

- 45

34

- 57

59,704+6,205+10.4%

65,922- 13- 0.0%

484+3,484+719.8%

3,279

+689

+21.0%Net Sales

5,059

4,714

+345

+7.3%

4,976

+83

+1.7%

565

342

+223

+65.2%

530

+35

2,969

2,562

+407

+15.9%

2,933

+36

+1.2%

235

108

+127

+117.6%184+51+27.7%

10,592

10,106

+486

+4.8%

10,837- 245- 2.3%

999

703

+296

+42.1%

1,018

- 19

- 1.9%

20,402

19,155+1,247+6.5%

20,557- 155- 0.8%+2.7%

Net Sales

Net Sales

Net Sales

+6.6%

2,022

1,484

+538

+36.3%

1,968+54

86,311

78,859+7,452+9.4%

86,479- 168- 0.2%

Operating Profit

5,990

1,968

+4,022+204.4%

5,247

+743

+14.2%Net Sales

4,832

4,244

+588

+13.9%

4,637

+195

+4.2%

Operating Profit

- 449

- 514

+65

- 462

+13

Net Sales

936

759

+177

Operating Profit

- 231

- 407

+176

Net Sales

3,234

2,730

+504

40

- 211

+251

9,002

7,733

+1,269Net Sales

Operating Profit

14

+7.1%

+299

3,968

Operating Profit

Europe

+488

523
2,970

65,909Operating Profit

9

6,865

822
2,844

Operating Profit

Net Sales

Operating Profit

Net Sales
Operating Profit

Net Sales
Operating Profit+23.3%+18.5%

880

+56

- 271

+40

+6.4%

3,096

+138

+4.5%

5

+35

+700.0%

+389

+4.5%

+16.4%

8,613

- 640

- 1,132

+492

- 728

+88

90,411

82,166+8,245+10.0%

90,000

+411

+0.5%

5,022

193

+4,829+2502.1%

4,000+1,022+25.6%

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

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

35% of Change

51,419Operating Profit

13

Change+12.0%Creative Yoko

12

Previous
Forecasut+5,511

Chacott

11% of Change

46,055

6

8

Change51,566Net Sales

Operating Profit

5

FY2022

FY2023 Full-Year : Performance Forecasts by Company
Full-Year Forecast
FY2022
ActualFY2023
1

Onward Kashiyama+HD

Net Sales
Operating Profit

OnwardNet Sales

Corporate Design

Operating Profit

3

IslandNet Sales

5

Domestic Apparel Total

6

Chacott

2

YamatoDomestic Lifestyle Total

107,858

+106

+0.1%

7,801

4,524

+3,277+72.4%

6,887

+914

+13.3%

16,205

14,503+1,702+11.7%

16,279- 74- 0.5%

1,527

1,007

+520

+51.6%

1,386

+141

+10.2%- 50- 0.8%

6,341

- 106

- 1.7%

35

80

- 45

- 56.3%

152

- 117

- 77.0%129,525+9,352+7.2%

139,113- 236- 0.2%

Operating Profit

9,421

5,000

+4,421+88.4%

8,960

+461

+5.1%

Net Sales

9,573

8,849

+724

+8.2%

9,473

+100

+1.1%

631

342

+289

+84.5%

573+58+10.1%

6,307

5,801

+506

+8.7%

6,246

+61

+1.0%

582

419

+163

+38.9%

545

+37

+6.8%

21,593

20,629

+964

+4.7%

21,836- 243- 1.1%

1,806

1,489

+317

+21.3%

1,827

- 21

- 1.1%

40,43137,926+2,505+6.6%

40,481- 50- 0.1%

3,461

2,741

+720

+26.3%

3,239

+222

+6.9%

Net Sales

Net Sales

Net Sales
Operating Profit

10

11

Domestic Subtotal

Europe6,235

Copyright © ONWARD HOLDINGS CO., LTD.

13

AmericaAsia

179,308

167,451+11,857+7.1%

179,594- 286- 0.2%

12,882

7,741+5,141+66.4%

12,199

+683

+5.6%

Net Sales

10,9659,960+1,005+10.1%

10,694

+271

+2.5%

69

- 136

+205

108

- 39

- 36.1%Net Sales

1,966

1,636

+330

1,615

+351

+21.7%

Operating Profit

- 416

- 576

+160

- 302

- 114

Net Sales

6,812

5,654

+1,158

7,049

- 237

- 60

- 378

+318

- 106

+46

Operating Profit

14

Overseas Subtotal

15

Consolidated Total

Net Sales
Operating Profit
Net Sales
Operating Profit

19,743

17,250+2,493+20.2%+20.5%- 3.4%+14.5%

19,358

+385

- 407

- 1,090

+683

- 300

- 107

189,211

176,072+13,139+7.5%

188,800

+411

+0.2%

11,0225,214+5,808+111.4%10,000+1,022+10.2%

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.
Onward Corporate Design's previous year figures (2H) include Onward Creative Center's results in addition to Onward Trading results.

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

36

6,285

Operating Profit

Net Sales

Operating Profit

12% of Change+6.8%

138,877

Net Sales

Operating Profit

9

Change+6,855

Operating Profit

8

Previous
Forecasut

101,109

Operating Profit

Creative Yoko

% of Change

107,964

Operating Profit

7

Change+2.0%

FY2023 1H : SG&A Expenses / Items that Affect Net Profit

1

Presonnel

FY2023 1H

FY2022 1H

YoY(% of Change)

18,103

18,276- 0.9%

2

Rent

12,201

11,563+5.5%

3Transportation

3,162

3,083

+2.6%

4

Promotion andAdvertising

2,935

1,844

+59.2%

5

Depreciation

1,565

1,870

- 16.3%

6

Other

8,164

7,906

+3.3%

7

Total SG&A
Expenses

46,13044,542+3.6%[Items that Affect Net Profit]

FY2023 1H

Copyright © ONWARD HOLDINGS CO., LTD.

Non-operating profit from interest income, dividends
income, etc., was 0.3 billion yen.
◼
Non-operating expenses due to foreign exchange
losses, interest expenses, etc. were 0.9 billion yen.
◼
Extraordinary profit due to sales of investment
securities was 0.4 billion yen.
◼
Extraordinary loss was 0.4 billion yen due toimpairment loss, etc.
◼
The income tax ratio decreased because taxable
income is expected to increase in the future due tobetter performance and deferred tax assets wererecorded.
◼
As a result, net profit was 2.9 billion yen.
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

37

YoY(% of Change)

8

Operating Profit

5,022

193

+2502.1%

9

Non-Operating Profit

317

1,116

- 71.6%

10

Interest income

150

119

11

Foreign exchange gains

12

Other

166

287

13

Non-Operating Loss

927

655
131

708

14

Interest expenses

269

15

Foreign exchange loss

473

Share of loss of entities
accounted for using equity
Other

183

16
17

34

Total Non-Operating Profit/Loss

-609

461

19

Recurring Profit

4,412

654

20

Extraordinary Profit

362

1,455

21

23

Gain on sales of investment
securities
Gain on sales of shares ofsubsidiaries and associates
Other

362

120

28

Extraordinary Loss

385

485

25

Impairment loss

242

470

26

Other

142

15

-23

970

27

Extraordinary Profit/Loss

28

Profit Before Income Taxes

4,390

1,624

29

Income Taxes - Current

1,382

1,342

30

Prof it (loss) attributable to noncontrolling interests

144

-194

2,862

476

Net Profit+574.6%

1,306

24

31

+41.5%

489

18

22

◼

FY2022 1H+170.3%+501.2%

FY2023 1H : Consolidated Balance Sheet(Billion yen)

1
2

Current Assets

End-FY2023 1H

End-FY2022

160.7

159.1

+1.6

64.1

62.2

+1.9

Cash and Deposits

12.3

13.8

-1.5

4

Accounts
Receivable-trade

12.3

13.9

-1.6

5

Inventory

34.9

30.7

+4.2

6

Non-current Assets

96.5

96.9

-0.4

7

Property, Plant andEquipment

53.5

53.1

+0.4

8

Intangible Assets

8.7

9.1

-0.4

9

Investments andOther Assets

34.2

34.7

-0.5

80.7

74.1

+6.6

Total Liabilities

11

Accounts Payabletrade

21.1

21.4

-0.3

12

Borrowings

35.5

27.2

+8.3

13

Other

24.0

25.5

-1.5

14

Total Net Assets

80.0

85.0

-5.0

15

Shareholders' Equity
Ratio

46.5%

47.0%

-0.5%

16

Current Ratio

102.2%

117.2%-15.0%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

38

Change3

10

Copyright © ONWARD HOLDINGS CO., LTD.

Total Assets

Reasins for change

Increase due to active purchase for sales expansion

Increase due to new borrowings

Decrease in minority interests

FY2023 : 1H Results / Full-Year Forecasts by Group
1H Results
FY2023+ HD

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

Overseas Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022% of Change

FY2023

FY2022

Change1

Net Sales

51,56646,055+5,511+12.0%

107,964

101,109+6,8552

Gross Profit

31,245

27,158+4,087+15.0%

64,96960,068+4,901（% of Net Sales）(60.6%)(59.0%)(+1.6%)(60.2%)(59.4%)

3
4

SG&A Expenses

28,03526,826（% of Net Sales）(54.4%)(58.2%)+1,209Operating Profit

3,210

332

（% of Net Sales）(6.2%)(0.7%)

1

Net Sales

34,74532,804+1,941

2

Gross Profit

17,626

16,156+1,470（% of Net Sales）(50.7%)(49.3%)

SG&A Expenses

14,846

14,520（% of Net Sales）(42.7%)(44.3%)

3

Operating Profit

4

2,780

1,636

（% of Net Sales）(8.0%)(5.0%)

1

Net Sales

9,002

7,733

2

Gross Profit

4,047

3,161

（% of Net Sales）(45.0%)(40.9%)

SG&A Expenses

4,687

4,293

（% of Net Sales）(52.1%)(55.5%)

Operating Profit- 640- 1,132--

3
4（% of Net Sales）© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

39

Full-Year Forecast

Change+2,878+326+1,144+4.5%

57,16855,544(- 3.9%)(53.0%)(54.9%)% of Change

+6.8%
+8.2%
(+0.8%)+1,624+2.9%(- 2.0%)+866.9%

7,801

4,524

(+5.5%)(7.2%)(4.5%)+5.9%

71,344

66,342+5,002+7.5%+3,342+10.3%+9.1%

35,85832,516(+1.5%)(50.3%)(49.0%)+2.2%

30,77729,299(- 1.5%)(43.1%)(44.2%)+3,277+72.4%(+2.8%)(+1.2%)+1,478+5.0%(- 1.0%)+69.9%

5,081

3,217

(+3.0%)(7.1%)(4.8%)+1,269+16.4%

19,743

17,250+2,493+14.5%+886+28.0%

9,147

7,552

+1,595+21.1%(+4.1%)(46.3%)(43.8%)

+9.2%

9,554

8,642

+912

+10.6%(- 3.4%)(48.4%)(50.1%)- 407- 1,090

-

-

+394
+492

-

+1,864+57.9%(+2.3%)(+2.6%)(- 1.7%)+683-

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.

43