Presentation of Results for the Fiscal Year
Ended on February 28, 2007

Onward Kashiyama Co., Ltd.

By

Shigeru Uemura
President
April 16, 2007

Results for Fiscal 2007 and Plans for Fiscal 2008
Fiscal 2007

Principal Factors

Fiscal 2007 (Consolidated)
Net sales:¥318.6 billion (12.6 % increase）
Operating income: ¥25.4 billion (2.9 % increase)Ordinary income:

Increase in sales andincome¥27.4 billion (0.9 % increase)¥215.7 billion (6.0 % increase）

Operating income¥18.2 billion (3.0 % decrease)¥22.1 billion (1.0 % increase)Ordinary income

and Joseph, newly consolidated subsidiaries in
Europe, steadily expanded sales draw ing on theirbrand power and contributed to consolidated income.

Principal Factors

Fiscal 2007 (Non-Consolidated)
Sales・Performance was above target, as GIBO’ CO Group・Sales perform ance w as virtually on target w ith theIncrease in sales
and income

initial forecast. Operating profit declined as valuation
losses on increased inventories lowered the grossmargin, but ordinary income rose.

Plans for Fiscal 2008

Fiscal 2008 (Consolidated)
Net sales¥296.0 billion (7.1 % decrease)

Operating income¥23.7 billion (6.8 % decrease)Ordinary income¥28.0 billion (2.2 % increase)

Principal Policies
Decrease in sales,
increase in income

・ Net sales and operating income will decline becauseof the sale of Impact 21, but ordinary income isforecast to increase as a portion of Polo business
transactions continue and income of companies
accounted for under the equity method contributes to
non-operating income.

1

Sales by Sales Channel (Non-Consolidated)
Clothing sales of all department stores were down 1.7%, but Onward sales grew 6.8% for the full fiscal year.
Clothing sales of all department stores were down 1.7%, but Onward sales grew 6.8% for the full fiscal year.
Sales through new distribution channels grew 6.9%, as “anyFAM” recovered in the second half, and our core brands showed stable growth.
Sales through new distribution channels grew 6.9%, as “anyFAM” recovered in the second half, and our core brands showed stable growth.
Co m p a r i s o n o f a l l d e p a r t m e n t s t o r e a p p a r e l s a l e s a n d O n w a r d s a l e s ( % c h a n g e y e a r
o n y ea r , no n- c on s ol i d a t e d)

OnwardＡｌｌ departme nt stores(in c lu din g e xsting an d n e w stores)

2 0 .0 %1 5 .0 %1 5 .0 %1 1 .2 %9 .6 %
1 0 .0 %6 .8 %

5 .0 %

4 .4 %

3 .6 %De c.

J an .

1 .9 %

4 .4 %- 0 .1 %0 .0 %- 5 .0 %T o ta l f o r

S e pt .

O c t.

No v .

F e b.

T o t a l fo r
sec o ndin te rimh a lfp e ri o d

T o tal f o r
th e

fu ll

f i s c a l ye a rl

Source: Japan Department Store Association
C o m p ar i s o n

o f do m e s t i c s h o p pi n g c e n t e r ( S C ) s al e s t h r o u g h n e w
c h an ge ye ar o n
ＯＮＷＡＲＤdi s t r ib u t io n c h an n e l s ( %ye a r ,n o n - c o n s o l i d at e d)Ａｌｌ

ＳＣ's(in clu ding e xstin g an d ne w sto re)

1 9 .1 %2 0 .0 %1 5 .0 %1 0 .0 %1 1 .3 %5 .6 %

8 .1 %

7 .8 %

7 .5 %
5 .1 %

5 .0 %

6 .9 %

2 .3 %

0 .0 %- 5 .0 %T o ta l f o r

S e pt .

O c t.

No v .

De c.

J an .

in te rimp e ri o d

New distribution channels: Refers to “fashion buildings” (multi-story facilities housing
boutiques and other retail outlets) and shopping centers.

F e b.

T o t a l fo r
sec o ndh a lfT o tal f o r
th e

fu ll

f i s c a l ye a rl

Source: Japan Shopping Center Association2

Outline of Policies in Fiscal 2007 and Fiscal 2008
Focus
Focusononboosting
boostingbasic
basicstrengths.
strengths.
Aim
Aimforforexpansion
expansionin
insalessalesandandincomeincomeagain
againininfiscalfiscal2008
2008
Basic Policies
Strengthen
Strengthen
operatingoperating base
base

Develop
Develop andand nurture
nurturenew
brandsnew brands

Ｍ＆Ａ
Ｍ＆Ａ
and
and joint
joint ventures
ventures

Policies in Fiscal 2007
MaximizeMaximize sales
salesofofmajormajor core
core brands
brands(NIJYUSANKU,(NIJYUSANKU,KUMIKYOKU,KUMIKYOKU,ICB,ICB,JIYUKU)JIYUKU)ExpandExpandsales
salesofofsecondary
secondary brands
brandsStrengthen
Strengthen men’s
men’s brands
brands Develop
Developnew
newproductproduct zones:
zones:For
For NAVE
NAVE Ladies’
Ladies’inin spring/summer
2006
and
NAVE
spring/summer 2006 and NAVEMen
Men’s’sinin
autumn/winterautumn/winter2006
2006
 Develop
Developnew
newbranbrandsdslookinglookingto
tonextnext fiscal
fiscalyear
yearExpandExpandJose
Joseph-related
ph-relatedbusinessbusinessactivities
activities
JointJoint ventures:ventures:ExpandExpandsales
salesofofCROON
CROONAA SONG
SONGthroughthroughCANDELACANDELAINTERNATIONAL
CO,.ＬTD.
INTERNATIONAL CO,.ＬTD.

EnterEnternew
new joint
jointventures
ventures

Policies in Fiscal 2008
Conti
Continnue
uepolicies
policiesofofprevious
previousyear
yearandandfurtherfurtherpromote
promotethese
theseReform
Reformorganization
organizationand
andbusinessbusiness processes
processes
forforplanningplanningand
andproduction
production

Continue
Continue andandfurther
further promote
promoteNEW

NEWEarlyEarlystart-up
start-upof
ofnew
newbrands
brandsfor
forspring/summer
spring/summer 2007
2007
“Jelly“JellyPlus,”
Plus,”“Noble“NobleBirth,”
Birth,”“Disia”“Disia”
For
Forautumn/winterautumn/winter2007:
2007:
DevelopDevelopyoung
youngladies’
ladies’casualcasualbrands
brandsDevelopDevelopstoresstoreswith
withaatailoredtailoredmix
mixof
ofm
major
ajorbrands
brandsinin“New“New Distribution
DistributionChannels”
Channels”

Continue
Continue andandfurther
further promote
promoteNEW

Spring/summer
Spring/summer2007
2007
NewlyNewlyintroduce
introduce“Banner“BannerBarrett”
Barrett”by
byMAIWOOD
MAIWOODINC.
INC.
Active
Activeentry
entryinto
intofashion
fashionaccessory
accessorybusinessbusiness

NEW

Strengthen
Strengthen overseas
overseasbusinessbusiness operations
operations

ExpandExpandoverseas
overseassales
sales


Accel
Acceleerate
rateworldworldstrategy
strategyofof““JOSEPH”
JOSEPH”and
and““GIBO’
GIBO’CO”
CO”

Increase
Increasesales
salesininAsian
Asianmarkets
marketsoutside
outsideJapan,
Japan,especially
especiallyChina,
China,throughthroughexpanding
expandingsales
salesofofown
ownbrands
brandsBoostBoostplanningplanningcapabilities
capabilitiesofofGIBO’
GIBO’COCOGroup
Groupand
andJoseph
JosephBecomeBecomeNo.
No.11JapaneseJapaneseapparelapparelcompany
companyininAsia
Asia
Strengthen
Strengthenbase
baseininNorth
NorthAmerica
AmericaNEW

Realign
Realign andandstrengthen
strengthen
resortbusiness
resort businessactivities
activities

Strengthening
Strengtheningthe
the Guam
Guam resort
resortEstablish
Establishbase
baseasas all-roundall-roundresort
resortbusinessbusiness operating
operatinghotel,
hotel,water
waterpark,
park,andandgolf
golfcourses
coursesAimAimforforprofitableprofitableoperation
operationofofall-roundall-roundresort
resortbusinessbusiness

3

Strengthen Operating Base−① Actual and Planned Sales for Major Core and Secondary Brands
Major
Majorcore
corebrands
brandsFurther
FurtherExpansion
ExpansionininSales
SalesofofMajor
MajorCore
CoreandandSecondary
SecondaryBrands
Brands（Unit: ¥ million, wholesale prices） ※ Brands with planned sales of ¥3 billion or more

Secondary
Secondarybrands
brandsCore
Corebrandbrandforfornew
newchannels
channels

BrandsInterim period(actual)Fiscal 2007
Sales

Second half (actual)
Fiscal 2007

% changeSales% change

Full year (actual)
Fiscal 2007
Sales

Fiscal 2008
(Planned)% changeSales% change

NIJYUSANKU (women ’s)

12,8103%

13,4701%

26,2802%

27,0003%

KUMIKYOKU (women ’s)

7,540

3%

8,450

2%

15,9903%

16,4203%

ＩＣＢ (women ’s)

4,540

5%

5,680

5%

10,2205%

10,6805%JIYUKU (women ’s)

4,550

6%

4,860

7%

9,410

6%

10,0407%

J.PRESS（men ’s, women ’s, and children)

5,090

△1%

5,270

△3%

10,360△2%

10,400±0

CK Calvin Klein（men ’s, women ’s, jeans, underwear）

3,570

4%

4,130

1%

7,700

3%

7,780

1%

GOTAIRIKU (men ’s)

4,200

7%

3,010

±0

7,210

4%

7,500

4%

SONIA RYKIEL (women ’s)

3,100

10%

2,910

△3%

6,010

3%

6,100

1%

DAKS (men ’s, golf)

2,540

8%

2,820

3%

5,360

5%

5,600

4%

Paul Smith (women ’s)

2,310

9%

2,430

9%

4,740

9%

4,960

5%

JANE MORE (women ’s)

2,300

△9%

2,160

△10%

4,460

△10%

4,270

△4%

prideglide (women ’s)

1,720

33%

2,070

5%

3,790

16%

3,900

3%

Joseph (men ’s, women ’s)

1,490

122%

1,890

17%

3,380

48%

3,850

14%

MICHAEL KORS (women ’s)

1,610

8%

1,760

1%

3,370

4%

3,480

3%

anyFAM (women ’s and children ’s)

4,770

△8%

5,030

4%

9,800

△2%

10,3005%

anySiS (women ’s)

3,850

3%

4,400

5%

8,250

4%

8,440

2%

field dream （men ’s, women ’s）

1,660

26%

1,710

23%

3,370

24%

3,940

17%

Feroux (women ’s)

1,540

32%

1,730

16%

3,270

23%

3,400

4%

Total

69,1906%

73,7803％

142,9704％

148,060

4％

4

Strengthen Operating Base−② Reform Organization and Business Processes

CombineCombineplanningplanningand
andproduction
productiondivisions
divisions
Establish
Establishproductproductsupply
supplycapabilities
capabilitiesthat
thatcancanrespond
respondquickly
quicklytotomarket
marketchanges
changes①① Reduce
Reduce thethe 2929 brandbrand businessbusiness groups
groups toto 13
13

Organiza ② Shift the production functions to the business groups (planning department)② Shift the production functions to the business groups (planning department)-tionalandand integrate
integrate thethe systems
systems fully,
fully, fromfrom planningplanning throughthrough production
production
Reforms

Business
Process
Reforms①① ThroughThrough strategic
strategic use
use ofof overseas
overseas andand domestic
domestic plans,
plans, speed
speed upup thethe supply
supply ofofbest-selling
best-selling products
products②② Reform
Reformthe
the warehouse
warehouse distribution
distribution functions
functions now
now subcontracted
subcontracted toto distribution
distribution
subsidiaries
subsidiaries toto improve
improve efficiency
efficiency ofof distribution
distribution andand shorten
shorten lead
lead time
time
Suppliers
Suppliers

Newly
NewlyFormed
FormedBusiness
BusinessGroups
GroupsPlanning
Planning
Department
Department

Merchandisers
Merchandisers

Designers
Designers

PlantsPlants＋

Production
Production
Department
Department

Pattern
Pattern makers
makers

Production
Production
Management
Management

Stores5

Develop and Nurture New Brands ①

Early
Earlystart-up
start-upof
ofnew
newbrands,
brands,promote
promotedevelopment
developmentof
ofbrands
brandsforforsecondsecondhalf
halfofofthe
thefiscal
fiscalyear
year

Ｓpring/Ｓpring/Ｓummer
Ｓummerof
of
2007
2007

Collaboration brand with Miyake Design StudioSchedule: 18 stores for spring/summer of 2007 and 12
more stores for autumn/winter of 2007

A real clothes brand for the new career generation
Schedule: 10 stores for the spring/summer of 2007 and 5
to 10 more stores for autumn/winter of 2007

An elegant brand for adults= “prideglide” for the older
sister age -groupSchedule: 10 stores for the spring/summer of 2007 and 8
more stores for the autumn/winter of 2007

ＰＨＯＴＯ

ＰＨＯＴＯ

Autumn/Autumn/Winter
Winterofof 2007
2007

Develop young adult casual brands
for young women around 20“New Distribution Channels”
Develop stores with a tailored mixof major brands
6

Develop and Nurture New Brands ② Ｍ＆Ａ and Joint Ventures

Accelerate
Accelerateopening
openingof
ofnew
newstores
storesininleadingleadingfashion
fashionbuildings
buildingsand
andfree-standing
free-standingstoresstoresWork
Worktotoexpandexpandsales
salesininnew
newzoneszones
 Accelerate
Accelerateoffensive
offensive throughthroughownownbrandbrandandandjoint
joint venture
venturebrand
brandbusinessbusiness
 Actively
form
joint
ventureswith
newly
emerging
fashioncompanies
Actively form joint ventures with newly emerging fashion companies

Plans for FY 2008
Add 3 new stores tothe existing 15 for a
total of 18.
Introduce new“rosebullet more”
brand in March.

CROON A S ON G

Banner Barrett

CANDELAINTERNATIONAL CO.,ＬTD.

MAIWOOD INC.

Plans for FY 2008
Add 4 new stores tothe existing 15 for a
total of 19.

Plans for FY2008
Add 6 new stores tothe existing 3 for a
total of 9. Scheduled
to open new flagshipstore in Aoyama in
June.

7

Strengthen Overseas Operations: Raise Percentage of Overseas Sales『JOSEPH』『JOSEPH』Paris
ParisStoreStore ＧＩＢＯＧＩＢＯ ＣＯ.
ＣＯ.Group
Group

EuropeEurope

Asia
Asia

North
North
America
America Expand
Expandsales
sales throughthroughexpansion
expansionof
ofproduct
product planningplanningfor
forapparelapparelaccessories
accessories andanddevelopmentofnewproduct
lines
development of new product lines ＪＯＳＥＰＨＪＯＳＥＰＨ Raise
Raisebrand
brandequity
equity by
by strengthening
strengtheningand
andexpanding
expandingintegrated
integratedplanningplanningand
andproduction
production
activities
activities
 Expand
Expandsales
sales ininnew
newareas.
areas.

KUMIKYOKUKUMIKYOKU(children’s)(children’s)in
inIsetan’s
Isetan’sMei
MeiLong
LongZhen
ZhenShanghai
ShanghaiStoreStoreBecomeBecome No.
No. 11 JapaneseJapaneseapparelapparel company
company inin thethe AsianAsianmarketmarket Expand
Expandnumber
numberof
ofstoresstores ininChina
Chinaof
ofKUMIKYOKUKUMIKYOKUandandSIZE
SIZESITE
SITE (large(largesize
sizeclothing)clothing)
andandnewly
newly enter
enterthethechildren’schildren’s market
market (KUMIKYOK(KUMIKYOKU)U) Further
Furtherexpand
expandnumber
numberof
ofNIJYUKNIJYUKUUandand ICBICBstores
stores EnterEnterJOSEPHJOSEPHininthe
the Chinese,
Chinese, Korean,
Korean, andand TaiwaneseTaiwanesemarkets
markets『J.PRESS』『J.PRESS』 New
NewYork
YorkStoreStore Ｊ.ＰＲＥＳＳＪ.ＰＲＥＳＳ Ｎew
ＮewYork
York flagshipflagship store
store toto movemove into
intonew,new,
fully
redesigned
location(inMay)
fully redesigned location (in May)Build
 Build basis
basis forfor ＪＯＳＥＰＨＪＯＳＥＰＨ businessbusiness

Fiscal2006(Actual)

175

27 28

Fiscal2007(Actual)326

Fiscal 2008(Planl)

341

0

100

¥23.0
¥23.0billion
billion

42

200

32

51

300

¥40.0
¥40.0billion
billion48

400

EuropeAsia
North America¥44.0¥44.0billion
billion500

8

Resort Business: Focus Core Business in Guam

Aim
Aimforforprofitableprofitableoperation
operationby
byrealizing
realizingsynergies
synergiesamong
amongthetheall-roundall-roundhotel,
hotel,
water
waterpark,
park,andandgolf
golffacilities
facilities
ONWARD
ONWARD BEACH
BEACHRESORTRESORT GUAM,
GUAM, INC.．
INC.．
 Attract
Attract guests
guests toto hotelhotelfacilities
facilitiesby
byrealizing
realizing maximum
maximum
synergies
fromthe
ONWARDTALOFOFO
GOLF
synergies from the ONWARD TALOFOFO GOLFCLUB
CLUB
andandMANGILAO
MANGILAO GOLF
GOLFCLUB.
CLUB. Raise
Raise year-roundyear-roundoccupancy
occupancyby
byincrease
increaseguest
guestdrawing
drawingpower
powerininthe
the off
off
season.
season.

継続と推進
継続と推進

ONWARD
ONWARD BEACH
BEACHRESORTRESORT GUAM,
GUAM, INC．
INC．

Syne rgistic Effects Establish
EstablishNo.
No.11 brand
brandininGuamGuam andand consolidate
consolidateposition
positionas
priceleaderamong
golf
resortsinGuam
as price leader among golf resorts in Guam
 Attract
Attract guests
guests toto hotelhotelfacilities
facilitiesby
byofferingoffering “hotel“hoteland
and
golf”
tour
packages.
golf” tour packages.

継続と推進
継続と推進

継続と推進
継続と推進

TrendsTrendsin
inPerformance
Performance＜Net sales>¥3.7¥3.7billion
billionＦｉｓｃａｌ 2008

020

＜Ｃａｓｈ fio w＞＜Ｎｅｔ income＞

40

60（unit：¥100 million)

0

2

4

¥630
¥630million
millionＦｉｓｃａｌ 2008

¥210¥210million
millionＦｉｓｃａｌ 2008

68

（unit：¥100 million)

0

2

4

6

8

（unit：¥100 million)

9Trends in Capital Investment and Depreciation＜Depreciation＞＜Ｃapital investmennt＞
12,000（unit：¥million)

10,00012,000（unit：¥million)

10,0008,000

Non-ｃｏｎｓｏｌｉｄａｔｅｄ
ｃｏｎｓｏｌｉｄａｔｅｄ

6,000
4,000

（unit：¥million)

8,000

Non-ｃｏｎｓｏｌｉｄａｔｅｄ
ｃｏｎｓｏｌｉｄａｔｅｄ

6,000
4,000

2,000

2,000

0
2003 2004 2005 2006 2007 2008

（Fiscal year)）0（Fiscal year)）2003 2004 2005 2006 2007 2008

［Capital nvestment］［Depreciation］（unit：¥million)

Fiscal2003(Actual)（Fiscal year)）

Fiscal2004(Actual)Fiscal2005(Actual)Fiscal2006(Actual)Fiscal2007(Actual)Fiscal
2008(Plan)（unit：¥million)

Fiscal2003(Actual)Fiscal 2004
(Actual)Fiscal 2005
(Actual)Fiscal 2006
(Actual)Fiscal 2007
(Actual)Fiscal 2008
(Plan)

Conso
lidated

8,947

7,145

9,076

8,053

10,506

8,400

Consolidated

7,889

7,530

7,041

7,053

6,697

7,100

Nonconsol
idated

5,695

5,716

8,280

7,238

8,046

6,500

Nonconsoli
dated

4,905

5,057

5,353

5,542

4,890

5,200

10

Consolidated/Non-Consolidated Sales by Type
Consolidated(Unit: ¥ million）

Interim period of fiscal 2007

Second half of fiscal 2007

AmountAmount% Change

Full fiscal year 2007

% ChangeAmount% Change

Men’s

39,2499.3％

43,5082.5％

82,757

5.6％

Women’s

85,84918.5％

90,6989.9％

176,547

14.0％

Children’s

3,969

△5.2％

4,409

△1.3％

8,378

△3.2％

Kimono

1,990

△2.8％

1,562

△3.5％

3,552

△3.1％

Other

22,04021.7％

25,41631.1％

47,456

26.6％

Total

153,097

15.4%

165,593

10.1％

318,690

12.6％

Non-Consolidated(Unit: ¥ million）

Interim period of fiscal 2007

Second half of fiscal 2007

AmountAmount% Change

Full fiscal year 2007

% ChangeAmount% Change

Men’s

29,925

4.8%

32,3900.3%

62,315

2.4%

Women’s

66,062

11.9%

68,9586.2%

135,020

8.9%

Children’s

3,969

△5.2%

4,409

△1.3%

8,378

△3.2%

Kimono

1,990

△2.8%

1,562

△3.5%

3,552

△3.1%

Other

3,123

3.3%

3,347

△0.2%

6,470

1.4%

Total

105,069

8.5%

110,666

3.7%

215,735

6.0%

11

Non-Consolidated Sales by Distribution Channel（Unit: ¥ million）

Interim of period fiscal 2007
AmountChangeSecond half of fiscal 2007
AmountChangeFull fiscalYear2007

AmountChangeDepartment stores

70,588

9.6%

78,323

4.4%

148,911

6.8%

New Distribution
Channels

15,411

5.6%

16,7278.1%

32,138

6.9%

Chain stores

1,320△ 7.3%

1,606△ 4.9%

2,926△ 6.0%

Speciality stores

3,126

1.8%

3,164

△ 2.1%

6,290△ 0.2%

Other

14,624

9.1%

10,846△ 3.9%

25,470

3.2%

Total

105,069

8.5%

110,666

3.7%

215,735

6.0%

12

Changes in Sales Floor Area and Monthly Sales (Non-Consolidated)
Sales
SalesFloor
Floor Area
Area (Non-Consolidated)(Non-Consolidated)

Department
storesNew
Distribution
channels

Fiscal 2003
(Actual)Fiscal 2004
(Actual)Fiscal 2005
(Actual)Fiscal 2006
(Actual)Fiscal 2007
(Actual)Amount% changeAmount% changeAmount% changeAmount% changeAmount%changeSales (¥ million)

120,834

2.4%

126,016

4.3%

133,973

6.3%

139,376

4.0%

148,911

6.8%

Sales floor area（㎡）

150,620

4.8%

157,970

4.9%

175,000

10.8%

174,310△0.4%

182,480

4.7%

Sales (¥ million)

18,41839.6%

25,71339.6%

29,31814.0%

30,0642.5%

32,138

6.9%

Sales floor area（㎡）

56,82038.8%

73,45029.3%

87,47019.1%

92,190

5.4%

95,8303.9%

TrendsTrends ininMonthlyMonthly Sales
Sales (Non-Consolidated(Non-Consolidated))
Fiscal
2007

March

April

May

June

Men’s

7

2

19

△ 11

Women’s16

723Children’s△1△8

Kimono

△4

Other
Total

(unit：％）

AugustInterimperiod

Sept.

Oct.

Nov.

Dec.

Jan.

7

7

5

1

△3

△3

2

3

△1

14

15

12

8

0

4

7

3

△ 14

△4

△5

△5

7

△1

△2

0

△ 12

△6

△5

2

△3

△9

△ 15

0

△5

19

△ 15

1

146

3

3

12

4

21

△6

10

13

9

5

July

Second
half

Total

10

0

2

7

17

6

9

△2

△7

△3

△1

△3

2

9

△4

0

△4

△3

△1

3

△4

△4

26

0

1

△1

1

5

4

14

4

6

Feb.

13