Consolidated Financial Results
for the Three Months Ended May 31, 2022
[Japanese GAAP]
July 7, 2022
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, Director in charge of Finance, Accounting, Investor relations
Phone: +81-3-4512-1030
Scheduled date of filing quarterly securities report: July 14, 2022
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 Three Months Ended May 31, 2022 (March 1, 2022 – May 31, 2022)(1) Consolidated Operating Results (cumulative)(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Recurring profit
owners of parent
Three months ended Million yen% Million yen% Million yen% Million yen%
May 31, 2022
44,551
(3.2)
2,005
74.8
2,638
33.4
1,823
(11.5)
May 31, 2021
46,022
7.9
1,147
–
1,976
–
2,060
–
(Note) Comprehensive income: Three months ended May 31, 2022: 5,267 million yen [46.6%]
Three months ended May 31, 2021: 3,594 million yen [663.4%]
Basic earnings per
Diluted earnings
share
per share
Three months ended
Yen
Yen
13.44
13.42
May 31, 2022
May 31, 2021
15.20
15.17
(Reference) EBITDA (operating profit + depreciation and amortization):
Three months ended May 31, 2022: 3,365 million yen [37.5%]
Three months ended May 31, 2021: 2,447 million yen [–%]
(2) Consolidated Financial Position
Total assets

Net assets

Shareholders’equity ratio

Million yen
Million yen
161,969
As of May 31, 2022
80,605
157,727
As of February 28, 2022
77,257(Reference) Shareholders’ equity: As of May 31, 2022: 70,357 million yen
As of February 28, 2022: 66,886 million yen

%
43.4
42.4

2. Dividends
1st quarterend
Yen

Annual dividends per share
2nd quarter3rd quarterYear-end
end
end
Yen

Yen

Fiscal year ended–––
February 28, 2022
Fiscal year ending–
February 28, 2023
Fiscal year ending
February 28, 2023––
(Forecast)(Note) Revision to the forecast for dividends announced most recently: No

Total

Yen

Yen

12.00

12.00

12.00

12.00

3. Consolidated Performance Forecast for the Fiscal Year Ending February 28, 2023 (March 1, 2022 - February
28, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Recurring profit
to owners ofper share
parentMillion yen% Million yen% Million yen% Million yen%
Yen
1H (cumulative)
77,000 (4.7)(1,800)–(1,750)–(1,250)–(9.22)
Full year
168,700
0.1
2,100–
2,050 304.1
1,700 (80.2)
12.54(Note) Revision to the performance forecast announced most recently: No(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 28, 2023 (forecast): 7,080 million yen [80.8%]
Full year ended February 28, 2022: 3,915 million yen [–%]

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): Yes
Newly included: – (Company name:)
Excluded: One company (Company name: Onward Beach Resort Guam, Inc.)(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 May 31, 2022:
157,921,669 shares
As of February 28, 2022:
157,921,669 shares2) Total number of treasury shares at the end of the period:
As of May 31, 2022:
22,287,977 shares
As of February 28, 2022:
22,287,771 shares
3) Average number of shares outstanding during the period:
Three months ended May 31, 2022:
135,633,824 shares
Three months ended May 31, 2021:
135,605,426 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.

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 .................................................................................................... 2(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) Notes to Quarterly Consolidated Financial Statements .................................................................... 8(Uncertainties of entity’s ability to continue as going concern) .................................................. 8(Notes when there are significant changes in amounts of shareholders’ equity) ......................... 8(Changes in significant subsidiaries during the period under review) ........................................ 8(Changes in accounting policies) ................................................................................................. 8(Additional information) ............................................................................................................. 8(Segment information, etc.) ......................................................................................................... 9(Significant events after reporting period) ................................................................................ 10

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months ended May 31, 2022, the outlook for the Japanese economy remained uncertain withthe sudden depreciation of the Japanese yen in foreign exchange markets and soaring resource prices due to the
Russo-Ukrainian situation, despite the number of COVID-19 infections beginning to decline and consumption
activity gradually returning to normal due to the easing of restrictions on activity.
In these circumstances, the Group has promoted “Transformation Communication with Customers,” whichaims to co-create value with customers through new methods utilizing digital technology. In addition, the Group
has steadily promoted the integration of physical stores and e-commerce as a priority measure in the ApparelBusiness and gradually expanded the number of OMO (Online Merges with Offline)-type stores which
introduced the Click and Try service, which greatly contributed to the recovery of net sales in the ApparelBusiness overall. The Group also curbed discount sales and fully implemented a centralized inventory control
system, thus realizing significant improvements in gross profit margin for the three months ended May 31, 2022,
and a much higher operating profit compared with the previous year.
As a result of the above, consolidated net sales amounted to 44,551 million yen (a 3.2% decrease year onyear), consolidated operating profit amounted to 2,005 million yen (a 74.8% increase year on year), consolidated
recurring profit amounted to 2,638 million yen (a 33.4% increase year on year), and profit attributable to ownersof parent amounted to 1,823 million yen (an 11.5% decrease year on year).
Furthermore, the Group has adopted EBITDA (operating profit + depreciation and amortization) as amanagement indicator with the purpose of enabling convenient comparisons between companies regardless ofdifferences in accounting standards, amid its efforts to accelerate growth through enhancement and expansion ofbusiness foundations that utilize creation of new businesses, M&A, etc.
EBITDA for the three months ended May 31, 2022 was 3,365 million yen (a 37.5% increase year on year).
Status by segment is as follows.
[Apparel Business]
In the domestic business, Onward Kashiyama Co., Ltd., which is a core operating company, steadily implemented
sales strategies such as expanding the number of OMO-type stores, which introduced the Click and Try service.
As a result of these strategies, both sales and profit significantly increased. Furthermore, both sales and profit
increased at Onward Personal Style Co., Ltd., which develops KASHIYAMA, a made-to-order suit brand.
In the overseas business, sales decreased as a result of withdrawing from unprofitable businesses in Europe.
As a result, profit increased despite a decrease in sales for the Apparel Business.
[Lifestyle Business]
In the Lifestyle Business, Chacott Co., Ltd. opened the flagship Chacott DAIKANYAMA store in March 2022,
which attracted a large number of visitors. In addition, customers were presented with new lifestyle ideas, suchas the “dōzo – Have fun with gifts” social gift service begun by Yamato Co., Ltd., that became popular.
Both sales and profit increased at Chacott Co., Ltd. due to the strong performance of its ballet products andat Yamato Co., Ltd. due to the robust recovery of demand for wedding-related products.
Sales and profit also increased at Creative Yoko Co., Ltd., which is engaged in a pet and home life business,
and at KOKOBUY Co., Ltd., which conducts a beauty and cosmetics business.
As a result, both sales and profit increased in the Lifestyle Business.

(2) Explanation of Financial Position(Status of assets, liabilities, and net assets)
Total assets as of the end of the first quarter of the fiscal year under review increased by 4,241 million yen
compared with the end of the previous fiscal year to 161,969 million yen. This was primarily due to increases incash and deposits of 6,811 million yen and investment securities of 1,401 million yen.
2

Liabilities increased by 893 million yen compared with the end of the previous fiscal year to 81,364 million
yen. This was primarily due to an increase in short-term borrowings of 3,938 million yen.
Net assets increased by 3,347 million yen compared with the end of the previous fiscal year to 80,605
million yen. This was primarily due to profit attributable to owners of parent of 1,823 million yen, dividends ofsurplus of 1,627 million yen, an increase in valuation difference on available-for-sale securities of 1,300 million
yen, and an increase in foreign currency translation adjustment of 1,970 million yen.
As a result, the shareholders’ equity ratio was 43.4%.

(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information
No revisions have been made to the consolidated performance forecast for the six months ending August 31,
2022 and the full year ending February 28, 2023, which was announced on April 7, 2022.

3

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of February 28, 2022
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 May 31, 2022

15,20922,021

14,204

14,287

23,908
449
2,478
4,509
(252)
60,50823,043
348
2,372
4,892
(321)
66,64523,00823,371
11,66358,042

21,48923,057
11,02055,568

4,631
4,717
9,349

4,516
4,255
8,772

14,117
3,248
4,338
8,286
(163)
29,827
97,219157,727

15,518
3,341
2,847
9,455
(180)
30,983
95,323
161,969(Million yen)
As of February 28, 2022
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 May 31, 2022

6,361
11,86022,7582,022
626
50
12,08055,761

6,282
10,70026,697738
1,112
21
12,086
57,63912,3772,858

11,475
2,831

247

251

2,503
6,722
24,70980,4702,560
6,606
23,72481,36430,07950,39015,391(20,831)75,03030,07950,39015,586(20,831)
75,225(1,646)
1(5,698)(328)(472)(8,144)122
10,24877,257
157,727(345)
17(5,698)
1,641(483)(4,868)122
10,12580,605
161,969

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three months ended May 31(Million yen)
For the three months
ended May 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sales of non-current assets
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
Loss on sales of shares of subsidiaries and associates
Impairment loss
Loss on liquidation of subsidiaries and associates
Other
Total extraordinary losses
Profit before income taxes
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

For the three months
ended May 31, 2022

46,022
22,242
23,78022,632
1,147

44,551
19,83324,71822,712
2,005

6
0
515
282
473
1,278

6
0
860
84
95
1,046

107

52

25

15

316
449
1,976

346
414
2,638

4,818
63
2,944
－
7,826

－
－
1,317
25
1,343

779
2,027
155
1,968
0
4,931
4,871
2,672
2,199
138
2,060

－
－
458
－
1
459
3,521
2,016
1,505
(317)
1,823

Quarterly Consolidated Statements of Comprehensive Income
Three months ended May 31(Million yen)
For the three months
ended May 31, 2021
ProfitOther 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, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

7

For the three months
ended May 31, 2022

2,199

1,505

625
(30)
401
390
7
1,395
3,594

1,300
16
－
2,456
(11)
3,762
5,267

3,437
157

5,099
168

(3) 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 significant subsidiaries during the period under review)
Onward Beach Resort Guam, Inc., which was the Company’s consolidated subsidiary, was excluded fromthe scope of consolidation in the first quarter of the fiscal year under review due to the sale of all its sharesthat the subsidiary of the Company owned.
(Changes in accounting policies)(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July4, 2019; hereinafter referred to as the “Fair Value Measurement Standard”) and other standards from the
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 Standard, etc. in accordance with the transitional treatment
provided in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). This does not affect the quarterly
consolidated financial statements.

(Additional information)(Treatment of tax effect accounting for the transition from the consolidated taxation system to the group tax sharing
system)Regarding the transition into the group tax sharing system established by the “Act for Partial Amendment of the
Income Tax Act, etc.” (Act No. 8 of 2020) and the items for which the single-entity taxation system has beenrevised in conjunction with the transition into the group tax sharing system, the Company and certain consolidated
subsidiaries in Japan have not applied the provisions of paragraph 44 of “Implementation Guidance on Tax EffectAccounting” (ASBJ Guidance No. 28, February 16, 2018), in accordance with the solution in paragraph 3 of“Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation
System to the Group Tax Sharing System” (PITF No.39, March 31, 2020). The amounts of deferred tax assets
and deferred tax liabilities are based on the provisions of the tax laws prior to the amendment.

8

(Segment information, etc.)
I Three months ended May 31, 2021 (From March 1, 2021 to May 31, 2021)
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

LifestyleBusiness

Total

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

(Domestic)(Overseas)

28,926

7,878

36,804

9,218

46,022–

46,022

202

351

554

343

897

(897)

–

29,129
495

8,229
219

37,358
715

9,561
472

46,920
1,187

(897)
(40)

46,022
1,147

Total

(Notes) 1. The adjustment amount for segment profit of (40) million yen includes amortization of goodwill of (193)
million yen, elimination of intersegment transactions of 915 million yen, and corporate expenses notallocated to reportable segments of (762) million yen. Corporate expenses are mainly general andadministrative expenses that are not attributable to reportable segments.
2. Segment profit coincides with the amount of operating profit in the Quarterly Consolidated Statementsof 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.

9II Three months ended May 31, 2022 (From March 1, 2022 to May 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)

31,5192,741

34,261

10,29044,551–

44,551

216

439

656

478

1,134

(1,134)–31,736
1,912

3,181
(560)

34,917
1,351

10,768833

45,6852,185(1,134)(179)

44,551
2,005

Total

(Notes) 1. The adjustment amount for segment profit (loss) of (179) million yen includes amortization of goodwillof (193) million yen, elimination of intersegment transactions of 926 million yen, and corporate expenses
not allocated to reportable segments of (912) million yen. Corporate expenses are mainly general andadministrative expenses that are not attributable to reportable segments.
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.

10