Presentation of Interim Results for the
Fiscal Year Ending February 28, 2011

Kentaro Mizuno
President＜Outline＞
Fiscal 2011 First Half Consolidated PerformanceFiscal 2011: First Half Consolidated Statements of Income ・・・・・・ Ｐ１
Fiscal 2011: First Half Consolidated Balance Sheets・・・・・・・・・・・・ Ｐ２
Fiscal 2011: Performance and Plans by Geographic Area・・・・・・・・ Ｐ３
Domestic Apparel-Related Business: First Half Summary ・・・・・・・・ Ｐ４～Ｐ５
Overseas Apparel-Related Business: First Half Summary・・・・・・・・ Ｐ６

Fiscal 2011 Second Half Business PlanFiscal 2011: Second Half Business Plan (Consolidated)・・・・・・・・ Ｐ７
Looking to the Second Half ・・・・・・・・・・・・・・・・・・・・・ ・・・・・ ・・・・・ Ｐ８
Domestic Apparel-Related Business: Second Half Plans・・・・・・・ Ｐ０９～Ｐ１５
Overseas Apparel-Related Business: Second Half Plans・・・・・・・ Ｐ１６～Ｐ１７
Onward’s Role and Responsibilities ・・・・・ ・・・・・・・・・・・・・・・・・・・ Ｐ１８～Ｐ１９

Principal Financial Indicators

Fiscal 2011 First Half Consolidated PerformanceFiscal 2011: First Half Consolidated Statements of Income（Unit: ¥ million）
Fiscal 2011
First Half

Fiscal 2010
First Half

Net sales% change

・ Sales of ONWARD KASHIYAMA’s four major core brands
Net sales

248,634
116,417

121,821- 5,404 ( - 4.4%)

Gross profit（Ratio）

54,50855,252- 744 ( - 1.3%)(46.8%)(45.4%)(1.4%)

SG&A（Ratio）

52,93954,989- 2,050 ( - 3.7%)(45.5%)(45.1%)(0.4%)

Operatingincome（Ratio）

1,569

263

(1.3%)(0.2%)

Ordinary
income（Ratio）

2,641

1,305

(2.3%)(1.1%)

Extraordinary
income（Ratio）

663

2,066

- 1,403 ( - 67.9%)(0.6%)(1.7%)( 1.1%)

202

446(0.2%)(0.4%)

1,169

960(1.0%)(0.8%)Net income（Ratio）

The real change in net sales after adjustments was -1.8%)(1.1%)
1,336 (102.4%)(1.2%)-

Extraordinaryloss（Ratio）

1,306 (

- 244 ( - 54.7%)( - 0.2%)
209 (21.8%)

showed a recovery trend, rising 2% year on year, but Groupsales as a whole decreased ¥2.6 billion (-3.5%).
・ Sales of other existing companies declined ¥6.2 billion, but
newly consolidated ISLAND contributed ¥3.4 billion.
*Impact of foreign currency fluctuations on sales of overseas
subsidiaries was -¥3.2 billion (-2.6%)

Gross profit
・ Gross profit of ONWARD KASHIYAMA improved as major core
brands recovered and carefully tailored business policies were
implemented by the parent company and subsidiaries.
Gross profit of existing companies increased 1.0%.
(That of ONWARD KASHIYAMA rose 0.5%.)
Gross profit of a new subsidiary rose 0.4%.

SG&A

・ Expenses were allocated efficiently in line with trends insales.
ONWARD KASHIYAMA: Reduced ¥1.3 billion
Other subsidiaries: Cut ¥2.3 billion
Increase due to a new subsidiary: ¥1.6 billion(0.2%)

１

Fiscal 2011: First Half Consolidated Balance Sheets（Unit: ¥ million）

Fiscal 2011
First Half

Total assets

Fiscal 2010
First Half

Change274,178

286,364-12,186

Cash and time deposits

24,082

26,722

Accounts and notes receivable

22,34323,280-2,640- 937

Inventories

29,90931,995- 2,086

Total current assets

85,381

92,524- 7,143

Total tangible fixed assets

88,20390,584- 2,381

Total intangible fixed assets

48,927

48,778149

Total investments and other assets

51,66654,477- 2,811

188,797

193,840- 5,043

Accounts and notes payable

31,271

32,240- 969

Short-term loans

31,66734,993Long-term loans

24,09025,065- 3,326- 975

Total liabilities

120,768

125,321- 4,553

Net assets

153,409

161,043- 7,634

Total fixed assets

２

Fiscal 2011: Performance and Plans by Geographic Area
FY2011 First Half Sales (Actual)（Area-wide share）

Japan¥104.3 billion （85％）
Europe¥14.8 billion （12％）

Asia¥2.8 billion （2％）

GIBO’ CO. GroupJOSEPH GroupJIL SANDER Group
Other companies

ONWARD FASHION TRADING(China)SHANGHAI ONWARD FASHION
Other companies

United States¥1.6 billion （1％）

ONWARD HOLDINGSONWARD KASHIYAMAONWARD TRADINGCHACOTTCREATIVE YOKO
BUS STOPISLANDACROSS TRANSPORT
Other companies

J. PRESSONWARD BEACH RESORT GUAMONWARD GOLF RESORT GUAM
Other companies（Unit: ¥ million）

Pro-Forma Sum(Before Eliminations）

Fiscal 2011 Second Half (Planned)

Fiscal 2011 First Half (Actual)

Net Sales
Amount （Change）

Domestic
businesses

104,329

Overseasbusinesses

19,242 (- 16.8%)

Total before
eliminations

123,571(-0.9%)( - 3.8%)

Operating Income
Amount(Ratio)（Change）

3,396(25.5%)(3.3%)

- 777

(

)

( - 4.0%)

2,619(2.1%)()

Net Sales
Amount （Change）

111,450(0.2%)

Operating Income

Fiscal 2011 Full Year (Planned)

Net Sales

Amount （Change）(Ratio)Amount （Change）

7,387

215,779(23.3%)(6.6%)

651

21,478 ( - 4.1%)(3.0%)

132,928 ( - 0.5%)(6.0%)

8,038

(

)

(45.0%)( - 0.3%)

Amount（Change）

10,783(24.0%)(Ratio)(5.0%)

40,720 ( - 10.6%)
256,499

Operating Income(- 2.1%)

- 126

(

)

(- 0.3%)

10,657(4.2%)(65.1%)

３

Domestic Apparel-Related Business: First Half Summary
Domestic Sales: ¥104.3 billion
ONWARD KASHIYAMA■ Although net sales were down year on year, sales of core brands began torise and policies were implemented to improve gross profit.

・ Increased gross profit by focusing sharply on creating value fromthe customer’s perspective and on carefully tailored “brand-leveraged management”・ As a result of the “RAINBOW STRATEGY” aimed at expanding sales
especially of core brands at individual stores, sales of major brands
began to rise.

・ Pursued efficient allocation of expenses in line with sales growth■ Strengthened business operations with new business strategies
・ Raised profile of new brands and new products across brandlines to develop new demand・ Engaged in full-scale development of e-commerce and sales
were above planned levels

４Domestic Apparel-Related Business: First Half Summary
ONWARD TRADING■ Performance below previous year in the core uniform andsales promotion business・ Number of transactions and sales were down substantially due tocost-cutting by users. However, the number of orders is expected torise and performance recovery is expected in the second half.

CHACOTT■ Sales and income both moved according to plan・In the midst of increasing competition, worked to improve the gross profit ratio by strengthening
operational and merchandising capabilities at freestanding stores. Recorded performanceaccording to plan.

CREATIVE YOKO

■ Although sales were below the previous year, reached profit targets as planned
・ Profitability increased as the gross profit ratio improved along with a rise in the ratio ofsales at list prices and efficient allocation of expenses.

・ Sales of new pet health-care and food products were favorable.

“Chacott”

On the other hand, sales of character goods were weak and developmentof new products remains as an issue to be addressed.

BUS STOP■Reached planned performance levels as a result of improved
efficiency

・ Improved gross profit and expense ratios as a result of enhanced business
operations

ISLAND■Sales and net income were substantially above planned levels

・ GRACE CONTINENTAL won strong consumer support, as reflected in higher “GRACE CONTINENTAL”
sales at existing stores and success of new stores.

５Overseas Apparel-Related Business: First Half Summary
Europe: Sales of ￥14.8 billion
ＧＩＢＯ’ＣＯ. Group■ Orders recovered along with the bottoming out of the luxury market■ Established production platform for the JIL SANDER GroupＪＯＳＥＰＨ Group■ Favorable sales performance (+120%) as a result of the effects ofrenovation of flagship stores■ Solved problems related to the improving the gross profit ratio,
and a return to profitability is expected in the second half

ＪＩＬ ＳＡＮＤＥＲ GroupJIL SANDER Hamburg store■ Gross profit and expense ratios improved because of enhanced management quality■ Anticipating expansion in wholesale sales because of increased orders in the second half
■ Productivity improved because of integration into the GIBO’ CO. Group

Asia: Sales of ￥2.8 billion
ONWARD FASHION TRADING (China)■ Increased sales and income because of expansion in retail sales
and improvement in management efficiency■ Working to strengthen production base in preparation for expansion

United States: Sales of ￥1.6 billion
Ｊ. PRESS, ＩＮＣ.
■ Improvement in profitability as a result of a review of productplanning and improvement in the ratio of sales at list prices“ICB”
Isetan Shanghai Mei Long Zhen store

６

Fiscal 2011 Second Half Business PlanFiscal 2011: Second Half Business Plan (Consolidated)（Unit: ¥ million）
FY2011
Second Half
(Planned)

FY2010
Second Half
(Actual)% change

Net sales■ Taking recent conditions into account, the initial

Net sales

126,883

126,81370 (0.1%)

sales plan for the second half has been lowered by¥1.2 billion.

Gross profit(Ratio)59,09258,924168 (0.3%)(46.6%)(46.5%)(0.1%)

Planned sales of ONWARD KASHIYAMA for thesecond half will be 97% of the same period of the previous
year.

SG&A
(Ratio)54,06154,804- 743 (-1.4%)(42.6%)(43.2%)( - 0.6%)

Operatingincome(Ratio)

5,031

4,120

911 (22.1%)(4.0%)（％）(3.2%)(0.8%)

Ordinary
income(Ratio)

6,359

4,815

1,544 (32.1%)(5.0%)（％）(3.8%)(1.2%)Net income(Ratio)

2,331

1,227

1,104 (90.0%)(1.8%)(1.0%)(0.8%)

・・ The contribution due to a new subsidiary has beenraised by ¥1.9 billion.
Gross profit
・ Since the gross profit ratio in the second halfof the previous fiscal year improved substantially(+1.1%), the planned improvement in the second
half of this year is 0.1%.

・

The planned improvement for ONWARD
KASHIYAMA is 0.9%.

SG&A

・ In line with the reduction in the operating planfor the second half, the SG&A plan has been reducedby ¥0.8 billion.

７

Looking to the Second Half
Key Policies■ In domestic business operations, we will work to achieve stable improvement in profitability and implement
aggressive business policies for new growth.
・ With “brand-leveraged management” as a basis, we will step up our “item strategy,” which focuses on offeringhigh-value-added items to meet customer needs.
・ We will accelerate the development of full-scale e-commerce business activities.
・ We will move ahead with expanding the net income of companies acquired through M&A.

■ In overseas business operations, we will accelerate the improvement of profitability and move forward,
with expansion of the scale of operations through implementing a global strategy.
・ We will carry out specific measures to improve the profitability of companies acquired
through M&A and accelerate our global expansion strategy.
・ We will move ahead with further expansion of the scale of our business operations in Southeast Asia.

In the first half of the fiscal year, in the midst of a severe management environment,
issues remained regarding the attainment of planned Group performance,
but we were able to show some positive results.

In the second half, we will implement aggressive measures to attain new growth
and address issues as we attain our goals for the full fiscal year.

Aiming to increase sales and income in the Onward
Group in the second half８Domestic Apparel-Related Business: Second Half Plans
ONWARD KASHIYAMA
Department Stores■ We will continue to pursue our “RAINBOW STRATEGY,” which aims at relocating andexpanding stores in prime locations, focusing on core brands.
⇒ We will create brand stores with a strong presence and expand sales of individual stores.
RAINBOW STRATEGY
Results of Our RAINBOW STRATEGY for Major Core Brands (Fiscal 2011 First Half (Actual))
Sales in first half

BrandStoresimplementing
RAINBOWSTRATEGYNIJYUSANKU

17

108%

128%

20%

KUMIKYOKU

7

92%

126%

34%

JIYUKU

20

100%

113%

13%

ICB

8

106%

152%

46%

RegularstoresRAINBOWSTRATEGY
stores% change

NIJYUSANKU Tobu Ikebukuro
Sales space 50㎡→89㎡
Sales up 66％

JIYUKU Takashimaya Tokyo
Sales space 40㎡→66㎡
Sales up 57％

Plans for Our RAINBOW STRATEGY in the Second Half
Expand “RAINBOWSTRATEGY”

Open new core brand stores in
Isetan Shinjuku

Newly open or renovate
96 stores

NIJYUSANKU on the second floor
and JIYUKU on the third floor

Open NIJYUSANKU flagshipstore on Ginza Street
Scheduling opening of a directly managed
store on Ginza Street(600 ㎡ ofsales space)in spring 2011９

Domestic Apparel-Related Business: Second Half Plans■ Differentiation through attractive products and sales tactics
Campaigns
Value Creation

Creating what is not available on the market rather than searching for what is
AIR JACKET Campaign

Evolve functionality and variety, expand scale
Product
featuresMarketingplan

・ Broaden color variations
・ Adopt original stretch fabrics to improve comfort
・ Expand customization options
Volume: Introduce about three times as many items
Number of brands: Expand brands from 3 to 7
Line composition:
Expand AIR JACKET to 60% of jacket line
Marketing in 54 department stores
Alps Stretch and Down Wear Campaign

Second COLOR MUSEUM Campaign
Select colors from scenes in the AlpsOffer new down outerwear featuring beauty and functionality
Product
featuresMarketingplan

・ Raise comfort levels by offering wear withstretchable packets containing down
・ Compact, stylish designs that are not bulky
Volume: Introduce about 140,000 garments in total, including lightweight and regular down

Number of brands: Campaign for 7 women’s brands
Marketing in 30 department stores

１０

Domestic Apparel-Related Business: Second Half Plans■ Developing new brand business through collaboration with department stores
Brand Development
Collaboration
Business

Combine our strengths with those of department
stores—Develop new brands evolved from thecustomer’s perspective

Success of model
storesExpand store
network

Offering Styles Targeted at New Men’s Life Scenes〈 enter G 〉

Entry-level suits for young businessmen
Open model store in Hankyu Umeda
Open 7 stores this fall in Tobu Ikebukuro,
Takashimaya Osaka, and elsewhere〈 coord.G 〉

Fashion-conscious tailored jacket styling for the “newadult” market
Opened 132 ㎡ model store in Mitsukoshi
Ginza in September〈Wood Land Club〉
New casual wear line for enjoying hobbies and leisure
Opened approximately 100 ㎡ model store
in Seibu Ikebukuro in September「coord.G」 Mitsukoshi Ginza

Expanding Brands Developed in Collaboration with Department Stores〈 Re-arth 〉
Casual brand for women in their 50s, attractively priced for
impulse buying
Opening model stores in Tenmaya, Meitetsu, Izutsuya, Fujisaki
4 new stores opened this fall
「Re-arth」

１１

Domestic Apparel-Related Business: Second Half Plans
Value Creation

ONWARD creates new value added by drawing on the latest technology
to pursue the development of ideal fashion.

■A jacket so light it feels likeair
Tailored from jersey material, lightand flexible■ A down coat that stretchesin every direction

AIR
JACKET■Warm and allows freedomof movement

STRETCHDOWNSTYLISHUP
PANTS

ACTIVE
OUTER

Down liner coats and quilted jackets
that are light and comfortable

Onward Research Center

DRIVE
BODY
FORM
■ Golfwear that improves distance
Born from collaboration among Onward, Prof. Moritani of the Graduate
School of Human and Environmental Studies, Kyoto University, andprofessional golfer Nobuhiro Nagai. Onward’s golfwear items enable golfers
to approach a more-ideal form.

BIO
TECH

Features improving comfort.
Includes stretchable down packets■ Long-legged pants that makewearing a girdle unnecessary
Made of a special fabric that featuresdiffering stretchability in some directions■ Eco-friendly wear that canbe recycled to the earth
The ultimate in eco-compatible
apparel. Dissolvable by bacteria
when buried for a year in the ground

１２

Domestic Apparel-Related Business: Second Half Plans
E-Commerce■ The Group is aiming for further business expansion and greater growth potential
through e-commerce, principally through its directly operated “ONWARD CROSSET” shopping site.
・ The Group is targeting sales of ¥2.5 billion in fiscal 2011. (Sales were running above
target in the first half of the fiscal year.)

Growth Strategy
Domestic Strategy

Increase customer traffic for the Onward GroupThrough teamwork with Group companies having strong
brands, Onward aims to enhance the attractiveness of
its website and expand membership and sales.
Synergies with actual stores
Onward is working to realize synergies with actual stores andpromote teamwork in customer relationship management.

Global Strategy
Asia
Entry into additional Asian markets, focusing on China, whererapid growth is expected

Leading
domesticGroupbrands

Fashioncompaniesin Europeand theAmericas

ActualstoresAsianmarkets

Europe/Americas
Teamwork with J. PRESS and other fashion companies in
Europe and the Americas
１３

Domestic Apparel-Related Business: Second Half Plans
New Distribution Channels■ Enhance profitability of existing brands

Brand Positioning Targeted by New and Existing Brands

・ Strengthen core brands anySiS/anyFAM・ Further develop store network through scrapping andbuilding
・ Promote development of new materials

ZARA
ZARA

■ Development of new brands

GAP
GAP

Debut scheduled in fall/winter 2011 season

earth,
music
アース&ミュージック
ecologyLOWRY’SLOWRY’SLOWRY’S■ Strengthen freestanding stores
・ NIJYUSANKU flagship store to open on Ginza Street
・ Strengthen existing freestanding stores

&M
M
H&

ユニクロ
UNIQLOUNIQLO

Forever21
Forever
21
Forever21

PRICE
PRICE

Domestic Group
Companies
ISLAND■ Accelerate growth of GRACE CONTINENTAL
・ Further increase sales of individual stores・ Strengthen/expand e-commerce—Links with
“ONWARD CROSSET”
・ Success of new storesOpened 3 stores, mainly in urban shopping centers
・ Plans for freestanding stores“GRACE CONTINENTAL” Marui Yurakucho store

１４

Domestic Apparel-Related Business: Second Half Plans
ONWARD TRADING■ Increase in orders as a result of recovery in the uniform andsales promotion services markets
・ Planning for recovery in performance for the full fiscal year as a result of
expansion in the second half owing to an increase in business inquiries
along with aggressive marketing
・ Strengthening new sales development by implementing value creation
strategies in collaboration with ONWARD KASHIYAMACHACOTT■ Expand profits through stronger promotion andgrow customer base of directly managed stores

CREATIVE YOKO
■ Move forward with store strategy through scrapping andbuilding and attain business expansion through strengtheningof new product development
・ Increase profits through expansion in sales of individual stores・ Development of new materials and strengthening the pet food lineup
・ Development of large-scale urban stores (combining pet fashion,
cafes, pet beauty parlors, pet health care, and other facilities)

BUS STOP■ Draw attention to the Onward Group as a trendsetter
・ Enhance profitability in existing businesses
・ Propose new, global businesses, aiming for strategic growth

１５

Overseas Apparel-Related Business: Second Half Plans
EuropeImplement Global Strategy to Improve Profitability and Realize Group Synergies
GIBO’ CO. Group■ Increase productivity and expand synergies by establishing additional
production platforms
・ Increase efficiency of production by expanding the ratio of production for
JIL SANDER
・ Expand customer base・ Improve production efficiency through Group synergies

JIL SANDER Group■ Generate profits and move to the next growth stage through stronger
corporate management
・ Aim for major reduction in production costs through JIL SANDER NAVY store
the use of the GIBO’ CO. Group production platform
marketing plan
・ Expand categories and items（Spring 2011）
RegionDirectly managed
storesOther stores

3
8
1

25
7
8
52

United States

Extend brand through introductionof JIL SANDER NAVY line

EuropeJapan/Asia

JOSEPH Group

Total■ Expand profits through “new growth strategy”

Coun
-try

France・ Increase brand equity
・ Expand wholesale business based on
global strategy

Sales of Renovated Storesin the First Half

UnitedKingdom

Accelerate positive effects ofrenovation of flagship stores“JIL SANDER NAVY”

Store nameFirst-half sales(year on year)

Old Bond

142%

Westbourne

152%

Montaigne

114%

Saint-Germain

113%“JOSEPH” Westbourne store

１６

Overseas Apparel-Related Business: Second Half Plans
Asia■ With “brand-leveraged management” as a basis,promote aggressive business expansion along with growth in
Asia
Southeast Asia
・ Established ONWARD KASHIYAMA SINGAPORE PTE. CO., LTD.
as a new sales base in June 2010
→ Expanding new store openings in the ASEAN markets
・ Established a representative office in Ho Chi Minh City, Vietnam,
as a new production base in August 2010
→ To open up and develop production bases (together
with other Japanese companies)

New/expanded stores in
China「ICB」 Isetan Tianjin store「JOSEPH」
Suzhou Hua Qin Shangcheng store

Hong Kong・Taiwan
・ Will further expand robust sales at the wholesale level to Taiwan, with
Hong Kong as the base

China

Korea

Korea
・ Will work to expand profits backed by recovery in the Korean economy
and the strength of young brands「NIJYUSANKU」
華潤時代広場店
China「23区」
Resources
Times Square store

China
・ Expanding store network through development of new brands
and increase sales of individual stores・ Begin to implement growth strategy through new businesses
・ Establish optimal production systems in collaboration
with business headquarters in Japan・ Planning on opening a large-scale freestanding store that willassemble major brands on Nanjing Road in Shanghai
・ Promoting of e-commerce business

United States■ Increase profitability of existing businesses and expand into new businesses
・ Improve profitability focusing on J. PRESS
Strengthen New York flagship store

TaiwanHong Kong

VietnamSingapore・ Further development of the JOSEPH and JIL SANDER brands
・ Create new businesses by strengthening teamwork with the CHACOTT Group
１７(FREED OF LONDON and other companies)

Onward’s Role and Responsibilities
Human Resource
Development

Developing internationally competitive human resources

3,600 sales staff aiming for the top position
Onward Group
Sales Staff Prizes

Introduced employee awards to recognize outstanding
sales know-how and improve motivation of sales staff
teams worldwide

Improving our spirit of challenge to achieve craftsmanshiplevels that will inspire our customers
Established an award system to encourage original and

ONWARD KASHIYAMA
competitive development to stimulate a spirit of challenge
Best Challenge Prizes

among planning and production teams

Giving the younger generation a chance to work on the world stage
Onward Group
Overseas Assignment
SystemNurturing personnel with a global outlook by
encouraging active international interchange,
including assignment of 5 young employees fromJapan to the Chinese market

Learning top-level customer service in Japan
Training for sales staff Providing opportunities for local sales staff from the rest ofof the Asia Business Asia to learn about Japanese customer service with the aim
Headquartersof developing a team of sales professionals

１８

Onward’s Role and Responsibilities
Environmental Management■ Onward positions environment-related activities as a priority management policy and iscontinuing to accept the challenge of promoting co-existence between the naturalenvironment and the people of the world.

Environmental
Concepts

Thinking of the Earth. Clothing Its People.

Continuation of the Onward Green Campaign
・Onward holds campaigns twice yearly to collect used Onward apparel items
and then produces blankets from the recycled fiber, which are then donatedto refugee camps around the world.
・During the spring/summer 2010 campaign, about 76,000 items were collectedfrom 10 Onward stores. The objective is to collect approximately 100,000 items
from 12 stores during the fall/winter 2010 campaign.
・ In spring 2010, Onward donated about 3,000 blankets, made from items
collected in the 2009 campaign, to refugees in Bangladesh.

Expansion of the “BIO TECH” Lineup
Men’s jackets and trousers
Women’s jackets and skirts
Uniforms

To be introduced in the gotairiku and J. PRESS
brand lines from fall 2010
Scheduled to be introduced in the ICB
brand line next spring
Will begin to accept orders for “BIO TECH”
corporate uniforms this winterCo-sponsorship of the 1,300th Anniversary of Nara Heijo-kyo Capital・Onward is scheduled to present exhibits in its Onward Pavilion at theCommemorative Events of the 1,300th Anniversary of Nara Heijo-kyo Capital(the founding of Japan’s ancient capital).
Exhibits will be held from October 25 to November 7.
・The opening ceremony will be attended by Johan Cels, the representativein Japan of UNHCR, the United Nations refugee organization.

Image of the facade of the Onward Pavilion
１９Principal Financial Indicators

Consolidated Results in Fiscal 2011
（Unit: ¥ million）

First half (Actual)
FY2011(Actual)

FY2010(Actual)Second half (Planned)%
Change Change

FY2011(Planned)

FY2010(Actual)ChangeNet sales

116,417 121,821- 5,404 (- 4.4%) 126,883 126,813

70

Gross profit

54,50855,252

168(Ratio)- 744 (-1.3%) 59,092 58,924(46.8%)(45.4%)(1.4%)

SG&A
expenses(Ratio)52,93954,989- 2,050 ( 3.7%) 54,061 54,804-(45.5%)(45.1%)(0.4%)

Operatingincome(Ratio)

1,569

263

1,306

(1.3%)(0.2%)(1.1%)

Ordinary
income(Ratio)

2,641

1,305

1,336

(2.3%)(1.1%)(1.2%)Net income

1,169

960

209

(1.0%)(0.8%)(0.2%)(Ratio)(46.6%)()(102.4%)(21.8%)(46.5%)

Full fiscal year (Planned)

FY2011%(Planned)
Change(0.1%)(0.3%)(0.1%)FY2010(Actual)%Change Change

243,300 248,634- 5,334 (- 2.1%)- 576 ( 0.5%)-

113,600 114,176(45.9%)(0.8%)- 743 ( 1.4%) 107,000 109,793-- 2,793(42.6%)(43.2%)( - 0.6%)

5,031

4,120

911

(4.0%)(3.2%)(0.8%)

6,359

4,815

1,544

(5.0%)(3.8%)(1.2%)

2,331

1,227

1,104

(1.8%)(1.0%)(0.8%)(46.7%)(22.1%)(32.1%)(90.0%)(44.0%)(44.2%)(- 0.2%)

6,600

4,383

2,217

(2.7%)(1.8%)(0.9%)

9,000

6,120

2,880

(3.7%)(2.5%)(1.2%)

3,500

2,187

1,313

(1.4%)(0.9%)(0.5%)-( 2.5%)(50.6%)(47.1%)(60.0%)

２０

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

First half of FY2011 (Actual)
AmountChange(Amount)

Second half of FY2011 (Planned)%
ChangeAmountChange(Amount)%
ChangePlans for FY2011
AmountChange(Amount)%
ChangeONWARD HOLDINGS +ONWARD KASHIYAMA CO., LTD.

72,866- 2,612- 3.5%

78,934- 2,418- 3.0%

151,800- 5,030- 3.2%

ONWARD TRADING CO., LTD.

7,602

- 1,392- 15.5%

7,573

+543

7.7%

15,175- 849- 5.3%CHACOTT CO., LTD.

5,113

- 129

- 2.5%

4,921

+113

2.4%

10,034- 16- 0.2%

CREATIVE YOKO CO., LTD.

3,515

- 218

- 5.8%

4,500

- 101

- 2.2%

8,015

- 319

- 3.8%ISLAND. CO., LTD.

3,453

+3,453－

3,547+1,875112.1%

7,000+5,328ACROSS TRANSPORT CO., LTD.

5,387

- 150

- 2.7%

5,508

- 94

- 1.7%

10,895- 244- 2.2%

ONWARD CREATIVE CENTER
CO., LTD.

1,718

+574

50.2%

1,900

+406

27.2%

3,618

+980

37.1%

ONWARD RESORT Group

1,934

+86

4.7%

1,646

+27

1.7%

3,580

+113

3.3%

JOSEPH Group

4,200

- 408

- 8.9%

4,862

+192

4.1%

9,062

- 216

- 2.3%

GIBO’ CO. Group

5,702- 1,183- 17.2%

6,176

- 831

- 11.9%11,878- 2,014- 14.5%JIL SANDER Group

4,311- 2,523- 36.9%

4,981

- 761

- 13.3%

9,292- 3,284- 26.1%（Unit: ¥ million）＜Operating Income＞

First half of FY2011 (Actual)
AmountChange(Amount)%
ChangeSecond half of FY2011 (Planned)%
ChangeAmountChange(Amount)

ONWARD HOLDINGS +ONWARD KASHIYAMA CO., LTD.

1,487

+375

33.7%

5,313

+468

ONWARD TRADING CO., LTD.

617

- 417

- 40.3%604+401

CHACOTT CO., LTD.

396

-5

- 1.2%

240+86

CREATIVE YOKO CO., LTD.

108

+30

38.5%

630

ISLAND. CO., LTD.

718

+718

－

ACROSS TRANSPORT CO., LTD.

21

- 136

- 86.6%

ONWARD CREATIVE CENTER
CO., LTD.

-7

ONWARD RESORT Group

Plans for FY2011
Change(Amount)

Amount%Change

6,800

+843

14.2%

1,221

-16

-1.3%

55.8%

636

+81

14.6%

- 46

- 6.8%

738

- 16

-2.1%

546

+288

111.6%

1,264+1,006112- 14-11.1%

133

-150

+46

41

+88

34

+134

73

+125

- 77

+56

-4

+181

JOSEPH Group

- 461

+234

49

+100

- 412

+334

GIBO’ CO. Group

31

- 94

407

+16

438

-78

JIL SANDER Group

- 562

+509

- 83

+756

- 645

+1,265-75.2%

9.7%

4.1%- 53.0%-15.1%

２１

Trends in Capital Investment and Depreciation＜Capital Investment＞＜Depreciation＞(Unit: ¥ million)

Non-Consolidated(Unit: ¥ million)

Consolidated

12,000Non-Consolidated

Consolidated

8,000
7,000

10,000

6,000

8,000

5,000
6,000

4,000
3,000

4,000

2,000

2,000

1,000

0

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011＜Capital Investment＞

0

FY2006

FY2007

FY2008FY2009 FY2010＜Depreciation＞
Fiscal2006(Actual)Fiscal2007(Actual)Fiscal2008(Actual)Fiscal2009(Actual)（Unit: ¥ million）
Fiscal First half of Fiscal
2010
fiscal 2011
2011
(Actual) (Planned)(Actual)（Unit: ¥ million）
Fiscal2007(Actual)Fiscal2008(Actual)Fiscal2009(Actual)Fiscal2010(Actual)8,053 10,506

9,566

4,178

5,794

Fiscal2006(Actual)Consolidated
NonConsolidated

7,238

8,046

5,255

FY2011

2,470

3,273

First half of Fiscal
fiscal 2011
2011
(Actual) (Planned)

2,657
1,800

6,200

Consolidated

7,053

6,697

7,340

5,986

5,747

2,707

6,000

4,000

NonConsolidated

5,542

4,890

5,109

4,639

3,764

1,729

3,900

２２

ONWARD KASHIYAMA Sales Floor Area and Monthly Sales＜Sales Floor Area＞（％：Change）

Fiscal 2006
(Actual)Department
storesNew
distribution
channels

Sales(¥ million)

Fiscal 2007
(Actual)Fiscal 2008
(Actual)Fiscal 2009
(Actual)First half of
Fiscal 2011
(Actual)Fiscal 2010
(Actual)Fiscal 2011
(Planned)

4.0% 148,911

6.8% 148,608 - 0.2% 135,031 - 9.1% 119,663 -11.4% 55,875 -1.5% 117,934 -1.4%

174,310 -0.4% 182,480

4.7% 175,200 -4.0% 173,500 -1.0% 165,800 -4.4% 161,800 - 3.5％ 163,900 -1.1%

Sales(¥ million)

30,064

2.5% 32,138

6.9% 33,263

Sales floor area(㎡)

92,1905.4% 95,830

3.9% 93,060 -2.9% 92,400 -0.7% 86,900 -6.0% 87,500

Sales floor area(㎡)

139,376

3.5% 32,066 -3.6% 28,218 -12.0% 12,750 -7.6% 26,112 -7.5%±084,400 -2.9%＜Trends in Monthly Sales＞
Fiscal 2011

Mar.

Apr.

May

June

July

Aug.

First half total

Men’s

-7

-2

-8

- 10

-2

-5

-6

Women’s

-4

-1

10

-8

-4

-2

-2

Children’s

-7

-7

6

-9

-2

-5

-4

Kimonos

-25

-13

4

- 29

- 20

-20

- 20

Other

- 10

1

-9

-9

-5

-5

-6

Total

-6

-1

4

-9

-4

-3

-4

２３

ONWARD KASHIYAMA Sales by Type and Sales by Distribution Channel＜By Apparel Type＞（Unit: ¥ million）

First half of FY2011 (Actual) Second half of FY2011 (Planned)
Amount% changeAmount% change

Full FY2011 (Planned)
Amount% change

Men’s

16,602- 6.3%

19,414- 4.5%

36,016- 5.3%

Women’s

49,891- 1.9%

53,621- 1.1%

103,512- 1.5%

Children’s

2,863- 4.1%

3,393- 3.6%

6,256- 3.8%

Kimonos

1,096-19.8%

858- 19.8%

1,954-19.8%

Other

2,414

- 6.0%

1,648- 26.2%

4,062- 15.4%

Total

72,866- 3.5%

78,934- 3.0%

151,800- 3.2%＜By Distribution Channel＞（Unit: ¥ million）

First half of FY2011 (Actual) Second half of FY2011 (Planned)
Amount% changeAmount% change

Full FY2011 (Planned)
Amount% change

Department stores

55,875- 1.5%

62,059- 1.4%

117,934- 1.4%New distribution
channels

12,750- 7.6%

13,362- 7.3%

26,112- 7.5%

Specialty stores

2,025- 13.8%1,927- 8.7%

3,952- 11.4%

Chain stores530- 17.8%504- 16.3%

1,034- 17.1%

Other

1,686

-14.4%

1,082-15.0%

2,768-14.6%

Total

72,866- 3.5%

78,934- 3.0%

151,800- 3.2%
２４

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