Consolidated Financial Results
for the Six Months Ended August 31, 2023
[Japanese GAAP]
October 5, 2023
Company name: Onward Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Securities code: 8016
URL: https://www.onward-hd.co.jp/en/
Representative: Michinobu Yasumoto, President and CEO
Contact: Osamu Sato, Managing Director in charge of Finance, Accounting, Investor Relations
Phone: +81-3-4512-1030
Scheduled date of filing quarterly securities report: October 13, 2023
Scheduled date of commencing dividend payments: –Availability of supplementary materials on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled (for institutional investors, securities analysts, andthe press)(Amounts of less than one million yen are rounded down.)
1. Consolidated Performance for the Six Months Ended August 31, 2023 (March 1, 2023 – August 31, 2023)(1) Consolidated Operating Results (cumulative)(% indicates changes from the previous corresponding period.)
Profit attributable toOperating profit
Recurring profit
Net sales
owners of parent
Six months ended
Million yen% Million yen% Million yen% Million yen%
August 31, 2023
90,411
10.0
5,022
–
4,412
574.1
2,862
501.1
August 31, 2022
82,166
1.7
193
–
654
–
476
(93.6)(Notes) 1. Comprehensive income: Six months ended August 31, 2023: 1,848 million yen [(70.8)%]
Six months ended August 31, 2022: 6,340 million yen [(35.6)%]
2. The year-on-year change rate of operating profit for the six months ended August 31, 2023 exceeded
1,000%, and is therefore indicated as “–.”Basic earnings
Diluted earnings
per shareper share
Six months ended
Yen
Yen
August 31, 2023
21.09
21.07
August 31, 2022
3.51
3.51
(Reference) EBITDA (operating profit + depreciation and amortization):
Six months ended August 31, 2023: 7,390 million yen [160.4%]
Six months ended August 31, 2022: 2,838 million yen [–%]
(2) Consolidated Financial Position
Total assets
Net assets
Million yen
Million yen
As of August 31, 2023
160,772
80,029As of February 28, 2023
159,198
85,073(Reference) Shareholders’ equity: As of August 31, 2023: 74,823 million yen
As of February 28, 2023: 74,747 million yen

Shareholders’ equity ratio
%
46.5
47.0

2. Dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end
Yen

Yen

Fiscal year ended––
February 28, 2023
Fiscal year ending––
February 29, 2024
Fiscal year ending
February 29, 2024 (Forecast)(Note) Revision to the forecast for dividends announced most recently: Yes

Year-end

Total

Yen

Yen

Yen

–

12.00

12.00

–

17.00

17.00

3. Consolidated Performance Forecast for the Fiscal Year Ending February 29, 2024 (March 1, 2023 - February
29, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Recurring profit
owners of parent
per share
Million yen% Million yen% Million yen% Million yen%
Yen
Full year
189,211
7.5
11,022 111.4
10,012
88.2
5,462
78.4
40.25
(Note) Revision to the performance forecast announced most recently: Yes(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 29, 2024 (forecast): 16,100 million yen [55.2%]
Full year ended February 28, 2023: 10,373 million yen [165.0%]

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): None
Newly included: – (Company name:)
Excluded: – (Company name:)(2) Application of special accounting methods for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares):
As of August 31, 2023:
157,921,669 shares
As of February 28, 2023:
157,921,669 shares2) Total number of treasury shares at the end of the period:
As of August 31, 2023:
22,204,814 shares
As of February 28, 2023:
22,204,488 shares
3) Average number of shares outstanding during the period:
Six months ended August 31, 2023:
135,717,046 shares
Six months ended August 31, 2022:
135,633,704 shares* These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants
or an audit firm.
* Explanation of the proper use of performance forecast and other notes• The performance outlook and other forward-looking statements herein are based on information currently available
to the Company and certain assumptions that have been deemed reasonable. Actual performance may differ
significantly from these forecasts due to a wide range of factors. For conditions used as the assumptions for the
performance forecast and notes on the use of performance forecast, please refer to “1. Qualitative Information on
Quarterly Financial Results for the Period under Review (3) Explanation of Consolidated Performance Forecast
and Other Forward-looking Information” on page 3 of the Attachments.

Note:
This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document
and the Japanese original, the original shall prevail.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results for the Period under Review ...................... 2(1) Explanation of Operating Results .................................................................................................... 2(2) Explanation of Financial Position .................................................................................................... 3(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information ....... 3
2. Quarterly Consolidated Financial Statements and Principal Notes .................................................... 4(1) Quarterly Consolidated Balance Sheets ........................................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ................................... 6
Quarterly Consolidated Statements of Income ............................................................................ 6
Quarterly Consolidated Statements of Comprehensive Income .................................................. 7(3) Quarterly Consolidated Statements of Cash Flows .......................................................................... 8(4) Notes to Quarterly Consolidated Financial Statements .................................................................... 9(Uncertainties of entity’s ability to continue as going concern) .................................................. 9(Notes when there are significant changes in amounts of shareholders’ equity) .............................. 9(Changes in accounting policies) ................................................................................................. 9(Additional information) ............................................................................................................... 9(Segment information, etc.) ....................................................................................................... 10(Significant events after reporting period) ................................................................................ 111

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
In the six months ended August 31, 2023, the Japanese economy was on a gradual recovery track associoeconomic activity normalized, with COVID-19 downgraded to a Class 5 infectious disease and theaccompanying easing of border restrictions. However, the outlook remains uncertain, due to the impact of the
protracted Russia-Ukraine conflict and the rise in domestic prices caused by soaring raw material and energy
prices attributed to a weak yen, among other factors, on consumer sentiment and corporate activity.
Under these circumstances, the number of customers visiting physical and online stores steadily increased
due to the expanded use of "Click & Try", the OMO (Online Merges with Offline) service of Onward
Kashiyama Co., Ltd. and the improved accuracy of our marketing measures utilizing social media. As a result,net sales grew significantly. In addition, the gross profit margin continued to increase owing to the remarkable
results of the global business reforms and increased efficiency of the product supply chain. Meanwhile, the
SG&A ratio declined markedly, mainly thanks to improvement in sales efficiency through the development ofmulti-brand stores.
As a result of the above, consolidated net sales were 90,411 million yen (+10.0% year-on-year), consolidated
operating profit was 5,022 million yen (26.0 times the year-ago figure), consolidated recurring profit was 4,412
million yen (+574.1% year-on-year), and profit attributable to owners of parent was 2,862 million yen(+501.1% year-on-year).
The Onward Group is accelerating growth by reinforcing and expanding its business base through thedevelopment of new businesses and M&As. In doing so, the Group has adopted EBITDA (operating profit +depreciation and amortization) as a key performance indicator to facilitate earnings comparisons between
companies regardless of differences in accounting standards.
In the six months ended August 31, 2023, EBITDA was 7,390 million yen (+160.4% year-on-year).
Results by segment were as follows.
[Apparel Business]
In the domestic business, to celebrate the 30th anniversary of the launch of Nijyusanku, a core brand of Onward
Kashiyama Co., Ltd., the Company appointed brand ambassadors and distributed the fashion movie, 30TH
SPECIAL FASHION SHOW PARIS TO TOKYO, via a dedicated website, and pushed forward with initiatives
aimed at achieving further growth. Sales of new brands such as "KASHIYAMA" and "UNFILO" were alsostrong.
Overseas, sales expanded in Europe, the Americas, and Asia, and increased utilization of the Dalian factory
contributed to improved profitability.
As a result, the Apparel Business reported higher sales and moved into the black, generating substantial
profits.
[Lifestyle Business]
Chacott Co., Ltd., which operates a wellness business, posted higher sales owing to increased demand for balletrelated goods on the back of a recovery in external events and growth of the cosmetics business. Performanceat Creative Yoko Co., Ltd., a subsidiary engaged in a pet and home life business, continued holding firm, thanks
to the success of new store opening initiatives. Yamato Co., Ltd., which operates a gift catalog business, also
continued to perform well.
As a result, sales and profit increased in the Lifestyle Business.

2(2) Explanation of Financial Position(Status of assets, liabilities, and net assets)
Total assets as of the end of the second quarter of the fiscal year under review increased by 1,573 million yen
compared with the end of the previous fiscal year to 160,772 million yen. This was primarily due to an increase
in merchandise and finished goods of 4,033 million yen, and decreases in cash and deposits of 1,481 million yen
and notes and accounts receivable—trade, and contract assets of 1,598 million yen.
Liabilities increased by 6,617 million yen compared with the end of the previous fiscal year to 80,742
million yen. This was primarily due to an increase in short-term borrowings of 10,962 million yen, and a decreasein long-term borrowings of 2,660 million yen.
Net assets decreased by 5,044 million yen compared with the end of the previous fiscal year to 80,029
million yen. This was primarily due to profit attributable to owners of parent of 2,862 million yen, dividends ofsurplus of 1,628 million yen, a decrease in valuation difference on available-for-sale securities of 434 million
yen, a decrease in foreign currency translation adjustment of 694 million yen, and a decrease in non-controllinginterests of 5,119 million yen.
As a result, the shareholders’ equity ratio was 46.5%.
(Status of cash flows)
Cash flows provided by operating activities amounted to 1,092 million yen (an inflow of 1,399 million yen forthe same period of the previous fiscal year) mainly due to profit before income taxes, an increase in inventories,
a decrease in trade receivables, and a decrease in trade payables.
Cash flows used in investing activities amounted to 1,893 million yen (an inflow of 5,935 million yen forthe same period of the previous fiscal year) mainly due to purchase of investment securities and purchase ofproperty, plant and equipment.
Cash flows used in financing activities amounted to 994 million yen (an outflow of 8,332 million yen forthe same period of the previous fiscal year), which primarily included a net increase (decrease) in borrowingsand dividends paid.
As a result, cash and cash equivalents as of the end of the six months ended August 31, 2023, decreased by
1,481 million yen compared with the end of the previous fiscal year to 12,314 million yen.

(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information
Revisions have been made to the consolidated performance forecast for the full year ending February 29, 2024,
which was announced on July 6, 2023, in light of the Company’s second quarter performance. For details, pleasesee “Notice of Revision to the Performance Forecast and Dividend Forecast,” announced today.

32. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of February 28, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

As of August 31, 2023

13,805

12,324

13,981

12,38327,297
486
2,935
4,185
(437)
62,25531,331
518
3,135
4,933
(442)
64,185

19,49823,32810,30353,13019,40923,47810,70153,590

4,025
5,081
9,106

3,719
5,002
8,721

16,433
5,441
3,454
9,708
(331)
34,706
96,943
159,198

16,396
5,504
2,873
9,685
(184)
34,27596,587
160,772(Million yen)
As of February 28, 2023
Liabilities
Current liabilities
Notes and accounts payable—trade
Electronically recorded obligations—operating
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for directors andcorporate auditors
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of August 31, 2023

8,154
13,236
18,600
1,129
914
179
10,90953,124

8,209
12,92529,563
684
1,460
122
9,866
62,832

8,657
2,886

5,997
2,860

262

286

2,563
6,630
21,00074,125

2,582
6,184
17,91080,74230,07950,347
16,042(20,748)
75,721

30,07950,347
17,276(20,749)
76,9552,620
30(5,698)
1,441
631
(973)
82
10,24385,073
159,198

2,186
47(5,698)747
584(2,132)
82
5,123
80,029160,772

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Six months ended August 31(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Other
Total extraordinary income
Extraordinary losses
Extraordinary loss due to closing and other
Impairment loss
Provision for loss on disaster
Other
Total extraordinary losses
Profit before income taxes
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

For the six months
ended August 31, 2022
82,16637,43144,73544,541
193

For the six months
ended August 31, 2023
90,411
39,25851,152
46,129
5,022

13
106

37
112

–

15

708
–
288
1,116

–
35
115
317

131

269

34

–

–
489
655
654

473
183
927
4,412

120
1,306
28
1,455

362
–
–
362

4
470
–
11
485
1,624
1,341
282
(193)
476

–
242
137
5
385
4,390
1,382
3,007
144
2,862

6

Quarterly Consolidated Statements of Comprehensive Income
Six months ended August 31(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

For the six months
ended August 31, 2022
282

For the six months
ended August 31, 2023
3,007

2,657
61
3,362
(23)

(434)
16
(694)
(46)

–

0

6,057
6,340

(1,158)
1,848

6,048
292

1,704
144

7

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months
ended August 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Loss (gain) on sales of shares of subsidiaries andassociates
Loss (gain) on disposal of non-current assets
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Purchase of long-term prepaid expenses
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Dividends paid
Repayments to non-controlling shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

8

For the six months
ended August 31, 2023

1,624
2,243
470
401
111
(164)
(32)
(119)
131
3,065
(477)
(381)

4,390
1,957
242
410
(157)
(63)
(26)
(150)
269
1,722
(4,026)(412)(1,306)0

1(3,293)
2,272
1,301
(154)
(2,051)
31
1,399

4(2,231)
1,928
153
(352)
(1,044)
407
1,092

(11)
11
(1,478)

–
–
(868)

–

51

(1)
1,306
(204)
259
(22)

(2,017)
1,770
(350)
161
(0)

7,652

–

(1,574)
5,935

(639)
(1,893)(3,868)(2,193)(1,627)(190)(453)(8,332)537(460)
15,19914,7398,272(1,860)(1,628)(5,020)
(757)
(994)
314
(1,481)
13,795
12,314

(4) Notes to Quarterly Consolidated Financial Statements(Uncertainties of entity’s ability to continue as going concern)
Not applicable.
(Notes when there are significant changes in amounts of shareholders’ equity)
Not applicable.
(Changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021; hereinafter referred to as the “Fair Value Measurement Guidance”) fromthe beginning of the first quarter of the fiscal year under review, and will prospectively apply the new accounting
policies stipulated by the Fair Value Measurement Guidance in accordance with the transitional treatment
provided in paragraph 27-2 of the Fair Value Measurement Guidance.
This does not affect the quarterly consolidated financial statements.
(Additional information)(Application of Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System)
The Company and certain consolidated subsidiaries in Japan have transitioned from a consolidated taxation
system to the group tax sharing system from the first quarter of the fiscal year under review. In accordance with
this, the accounting and disclosure of corporate taxes, local corporate taxes, and tax effect accounting are inaccordance with the “Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System”(PITF No. 42, August 12, 2021; hereinafter referred to as “PITF No. 42”).
Furthermore, based on paragraph 32 (1) of PITF No. 42, it is deemed that there are no effects due to changes
in accounting policies accompanying the application of PITF No. 42.

9

(Segment information, etc.)
I Six months ended August 31, 2022 (From March 1, 2022 to August 31, 2022)
1. Information on net sales and profit or loss by reportable segment(Million yen)
Apparel BusinessNet sales(1) Net sales to outside
customers(2) Intersegment sales ortransfers
Total
Segment profit (loss)

LifestyleBusiness

Total

Amountrecorded in
Quarterly
Adjustments
Consolidated(Note 1)
Statements ofIncome(Note 2)

(Domestic)(Overseas)

56,043

5,773

61,817

20,34882,166–82,166

557

928

1,485

718

2,203

(2,203)–56,60157

6,702(1,005)63,303(948)

21,066
1,664

84,370716(2,203)(522)

82,166
193

Total(Notes) 1. The adjustment amount for segment profit (loss) of (522) million yen includes amortization of goodwillof (401) million yen, elimination of intersegment transactions of 1,696 million yen, and corporate
expenses not allocated to reportable segments of (1,817) million yen.
Corporate expenses are mainly general and administrative expenses that are not attributable to reportablesegments.
2. Segment profit (loss) coincides with the amount of operating profit in the Quarterly Consolidated
Statements of Income.

2. Information on impairment loss on non-current assets or goodwill, etc. by reportable segment
There was no significant impairment loss or significant change in goodwill.

10

II Six months ended August 31, 2023 (From March 1, 2023 to August 31, 2023)
1. Information on net sales and profit or loss by reportable segment(Million yen)
Apparel BusinessNet sales(1) Net sales to outside
customers(2) Intersegment sales ortransfers
Total
Segment profit (loss)

LifestyleBusiness

Total

Amountrecorded in
Quarterly
Adjustments
Consolidated(Note 1)
Statements ofIncome(Note 2)

(Domestic)(Overseas)

62,065

6,571

68,636

21,77490,411–

90,411

490

1,071

1,562

794

2,357

(2,357)–62,555
3,493

7,643
(558)

70,1982,935

22,5692,556

92,7685,491(2,357)(468)

90,411
5,022

Total

(Notes) 1. The adjustment amount for segment profit (loss) of (468) million yen includes amortization of goodwillof (410) million yen, elimination of intersegment transactions of 1,921 million yen, and corporate
expenses not allocated to reportable segments of (1,979) million yen.
Corporate expenses are mainly general and administrative expenses that are not attributable to reportablesegments.
2. Segment profit (loss) coincides with the amount of operating profit in the Quarterly Consolidated
Statements of Income.

2. Information on impairment loss on non-current assets or goodwill, etc. by reportable segment
There was no significant impairment loss or significant change in goodwill.

(Significant events after reporting period)
Not applicable.

11