Consolidated Financial Results
for the Three Months Ended May 31, 2021
[Japanese GAAP]
July 8, 2021
Company name: Onward Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange, Nagoya Stock Exchange
Securities code: 8016
URL: https://www.onward-hd.co.jp/site/english/
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, 2021
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, 2021 (March 1, 2021 – May 31, 2021)(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, 2021
46,022
7.9
1,147
–
1,976
–
2,060
–
May 31, 2020
42,653 (34.3)(1,851)–(1,746)–(2,417)–(Note) Comprehensive income: Three months ended May 31, 2021: 3,594 million yen [663.4%]
Three months ended May 31, 2020: 470 million yen [(50.9)%]
Basic earnings per
Diluted earnings
share
per share
Three months ended
Yen
Yen
15.20
15.17
May 31, 2021
May 31, 2020
(17.90)–(Reference) EBITDA (operating profit + depreciation and amortization):
Three months ended May 31, 2021: 2,447 million yen [–%]
Three months ended May 31, 2020: (304) million yen [–%]
(Notes) 1. The Company has applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and “Implementation Guidance on Accounting Standard for Revenue Recognition”(ASBJ Guidance No. 30, March 26, 2021) early, from the beginning of the first quarter of the fiscal year
under review.
2. The presentation method has been changed from the first quarter of the fiscal year under review, andtherefore, with regard to net sales, operating profit, and EBITDA in the Consolidated Operating Results(cumulative), the Company states figures and year-on-year changes after reclassification that reflect thischange in the presentation method.
(2) Consolidated Financial Position
Total assets

Net assets

Shareholders’equity ratio

Million yen
Million yen
179,438
As of May 31, 2021
59,206
196,052
As of February 28, 2021
59,509(Reference) Shareholders’ equity: As of May 31, 2021: 58,808 million yen
As of February 28, 2021: 56,723 million yen

%
32.8
28.9

2. Dividends
Annual dividends per share
2nd quarter3rd quarter1st quarter-end
Year-end
end
end
Yen

Yen

Yen

Fiscal year ended–––
February 28, 2021
Fiscal year ending–
February 28, 2022
Fiscal year ending
February 28, 2022––
(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, 2022 (March 1, 2021 - February
28, 2022)(% 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)
89,3009.8(3,000)–(3,000)
–
2,200
–
16.25
Full year
190,500
8.3
3,200
–
3,000
–
6,300
–
46.52
(Note) Revision to the performance forecast announced most recently: No
The presentation method has been changed from the first quarter of the fiscal year under review, andtherefore, year-on-year change in net sales has been calculated using the figures for the same period of theprevious fiscal year after reclassification that reflect this change in the presentation method.
(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 28, 2022 (forecast): 9,300 million yen [–%]
Full year ended February 28, 2021: (14,133) million yen [–%]

* 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 May 31, 2021:
157,921,669 shares
As of February 28, 2021:
157,921,669 shares2) Total number of treasury shares at the end of the period:
As of May 31, 2021:
22,315,616 shares
As of February 28, 2021:
22,322,123 shares
3) Average number of shares outstanding during the period:
Three months ended May 31, 2021:
135,605,426 shares
Three months ended May 31, 2020:
135,091,266 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 .................................................................................................... 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(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 accounting policies) ................................................................................................... 8(Additional information) ............................................................................................................... 9(Notes to Quarterly Consolidated Statements of Income) ............................................................. 10(Segment information, etc.) ....................................................................................................... 11(Significant events after reporting period) ................................................................................ 121

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months ended May 31, 2021, the outlook of the Japanese economy continued to remain
uncertain with no end in sight to the spread of COVID-19, which led to the declaration of a state of emergency
and priority measures to prevent the spread of the virus being issued intermittently as well as temporary closuresand shorter business hours being requested again to large-scale commercial facilities.
In response to this harsh management environment, the Company worked to mitigate the burden of losses
arising from temporary closures of physical stores by such means as curtailing procurement and reducing fixed
costs. In addition, the Company steadily implemented the global business reforms that have been conductedsince the autumn of 2019.
As a result of the above, consolidated net sales amounted to 46,022 million yen (a 7.9% increase year-onyear), consolidated operating profit amounted to 1,147 million yen (operating loss of 1,851 million yen for thesame period of the previous fiscal year), consolidated recurring profit amounted to 1,976 million yen (recurring
loss of 1,746 million yen for the same period of the previous fiscal year), and profit attributable to owners ofparent amounted to 2,060 million yen (loss attributable to owners of parent of 2,417 million yen for the same
period of the previous fiscal year). Accordingly, the Company restored profitability at all levels of profit, namely,
operating profit and loss, recurring profit and loss, and net profit and loss.
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, 2021 was 2,447 million yen ((304) million yen for the same
period of the previous fiscal year).
The Company has applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ
Guidance No. 30, March 26, 2021) from the beginning of the first quarter of the fiscal year under review. The
details are described in “2. Quarterly Consolidated Financial Statements and Principal Notes, (3) Notes to
Quarterly Consolidated Financial Statements, (Changes in accounting policies).”
In addition, the presentation method has been changed from the beginning of the first quarter of the fiscal
year under review. Therefore, for year-on-year comparison of operating results, the Company uses the figures in
the Quarterly Consolidated Financial Statements for the first quarter of the previous fiscal year after
reclassification, which reflect this change in the presentation method. The details of the change in thepresentation method are described in “2. Quarterly Consolidated Financial Statements and Principal Notes, (3)Notes to Quarterly Consolidated Financial Statements, (Additional information), (Changes in the presentation
method).”Status by segment is as follows.
[Apparel Business]
In the domestic business, Onward Kashiyama Co., Ltd., which is a core group company, implemented new sales
strategies integrating physical stores with e-commerce, such as the opening of ONWARD CROSSET STORE,an OMO (Online Merges with Offline) store, as well as promotional initiatives using its owned media“ONWARD CROSSET MAG.” And other measures such as selling the products that missed sales opportunities
in the previous fiscal year at proper price and curbing discount sales were also successful. As a result of thesestrategies and measures, both sales and profit increased. In addition, at Tiaclasse Co., Ltd., whose main sales
channel is e-commerce, both sales and profit increased as in the previous fiscal year. Furthermore, sales increased
at Island Co., Ltd., which has Grace Continental as its core brand, and at Onward Personal Style Co., Ltd., whichdevelops KASHIYAMA, a made-to-order suit brand.

2

In the overseas business, profitability improved as a result of withdrawing from unprofitable businesses
over the past two years as part of the global business reforms, and profit increased despite a decrease in sales.
As a result, both sales and profit increased for the Apparel Business as a whole.
[Lifestyle Business]
In the Lifestyle Business, both sales and profit increased at Chacott Co., Ltd., which develops a wellness business,due to strong performance of its mainstay ballet products as well as the Chacott Cosmetics and Chacott Balance
brands. In addition, both sales and profit increased also at Creative Yoko Co., Ltd., which is engaged in a pet andhome life business. Meanwhile, both sales and profit decreased at companies including Onward Beach Resort
Guam, Inc., which conducts a resort business. Nevertheless, both sales and profit increased for the LifestyleBusiness as a whole.

(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 decreased by 16,614 million yen
compared with the end of the previous fiscal year to 179,438 million yen. This was primarily due to decreases
in cash and deposits of 2,678 million yen, merchandise and finished goods of 2,365 million yen, and notes andaccounts receivable—trade, and contract assets of 5,626 million yen.
Liabilities decreased by 16,311 million yen compared with the end of the previous fiscal year to 120,231
million yen. This was primarily due to decreases in notes and accounts payable—trade of 6,193 million yen andlong-term borrowings of 1,235 million yen.
Net assets decreased by 302 million yen compared with the end of the previous fiscal year to 59,206 million
yen. This was primarily due to profit attributable to owners of parent of 2,060 million yen, dividends of surplus
of 1,627 million yen, an increase in surplus at the beginning of the period due to changes in the accounting
policies of 272 million yen, and a decrease due to reversal of revaluation reserve for land of 1,008 million yen.
As a result, shareholders’ equity ratio was 32.8%.
(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,
2021 and the full year ending February 28, 2022, which was announced on April 8, 2021. The presentation
method has been changed from the first quarter of the fiscal year under review, and therefore, year-on-yearchange in net sales has been calculated using the figures for the same period of the previous fiscal year after
reclassification, which reflect this change in the presentation method.

3

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of February 28, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
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, 2021

21,301
18,251

18,622−−

12,62428,909
1,010
4,435
6,829
(277)
80,46026,544
465
2,936
9,261
(251)
70,20324,31635,25912,24971,82522,35832,573
12,41967,352

5,251
5,416
10,667

5,149
5,310
10,46014,312
2,814
7,486
8,778
(292)
33,099115,592
196,052

14,709
2,840
5,701
8,481
(310)
31,422
109,234
179,438(Million yen)
As of February 28, 2021
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
Provision for sales returns
Provision for point card certificates
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for directors andcorporate auditors
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, 2021

13,4728,484
61,618
669
589
25
125
636
13,927
99,5497,278
10,24061,394
984
1,125
19
−
−
11,337
92,37916,4303,482

15,195
3,058

232

236

16,84836,993
136,543

9,361
27,852120,231

30,07950,3909,321(20,865)
68,92630,07950,3909,114(20,859)
68,725(1,939)15(7,864)(1,669)(744)(12,202)138
2,646
59,509196,052(1,313)(15)(6,552)(1,297)(737)(9,916)135
262
59,206
179,438(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three months ended May 31(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
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 (loss)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
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 valuation of investment securities
Loss on liquidation of subsidiaries and associates
Other
Total extraordinary losses
Profit (loss) before income taxes
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

For the three months
ended May 31, 2020
42,65323,136
19,516
21,367(1,851)For the three months
ended May 31, 2021
46,022
22,242
23,78022,632
1,147

10
11
116
−
226
364

6
0
515
282
473
1,278

117

107

22

25

120
260
(1,746)

316
449
1,976

1,994
–
–
1,994

4,818
63
2,944
7,826

2,420
–
452
458
–
7
3,340
(3,092)(851)(2,241)176(2,417)

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

6

Quarterly Consolidated Statements of Comprehensive Income
Three months ended May 31(Million yen)

Profit (loss)
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, 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, 2020
(2,241)For the three months
ended May 31, 2021
2,199

1,949
(4)
1,064
(143)
(153)
2,712
470

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

296
174

3,437
157

(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 accounting policies)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No.
30, March 26, 2021) (hereinafter referred to as the “Accounting Standard for Revenue Recognition, etc.”) fromthe beginning of the first quarter of the fiscal year under review, and recognizes revenue in the amount expected
to be received in exchange for promised goods or services at the time when the control of these goods or services
is transferred to the customer.
The main changes resulting from the application of the Accounting Standard for Revenue Recognition, etc.
are as follows.
(Revenue recognition for principal and agent transactions)Regarding transactions in which the Company acts an agent in providing goods to a customer, the Company
previously recognized the gross amount of consideration to be received from the customer as revenue. However,
the Company has shifted to the method by which it recognizes revenue at the net amount after deducting theamount to be paid to the supplier of goods from the amount to be received from the customer. Meanwhile, withregard to transactions in which the Company acts as a principal and whose revenue was previously recognizedat the net amount after deducting an amount equivalent to distribution fees from the amount to be received fromthe customer, the Company has shifted to the method by which it recognizes revenue at the gross amount ofconsideration.
(Revenue recognition for customer loyalty program)
Regarding the sale of goods under the customer loyalty program, which grants points to customers when goods
are sold, the Company previously recognized revenue at the time of sale, recorded an amount expected to be
used from the points granted as “Provision for point card certificates,” and recorded the amount of provision forpoint card certificates as “Selling, general and administrative expenses.” However, the Company has shifted tothe method by which it identifies the points granted as performance obligations and allocates the transaction
price based on the standalone selling price estimated in consideration of the points that are expected to expire in
the future.
(Revenue recognition for sale with a right of return)Regarding “Provision for sales returns,” which was previously recorded under “Current liabilities” based on an
amount equivalent to gross profit, the Company has shifted to the method by which it recognizes revenue andcost of sales at the amounts excluding amounts equivalent to revenue and cost of sales for merchandise andfinished goods that are expected to be returned. Compensation for merchandise and finished goods that are
expected to be returned is recorded as refund liabilities in “Other” under “Current liabilities,” and assets
recognized as the right to recover merchandize and finished goods from customers at the time of settlement ofrefund liabilities are recorded as return assets in “Notes and accounts receivable—trade, and contract assets”
under “Current assets.”
8

The application of the Accounting Standard for Revenue Recognition, etc. is subject to the transitional
treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition. The
cumulative effect of the retrospective application of the new accounting policy, assuming it has been applied toperiods prior to the beginning of the first quarter of the fiscal year under review, is added to or subtracted fromretained earnings at the beginning of the first quarter of the fiscal year under review, and the new accounting
policy is applied from the said beginning balance. However, the new accounting policy has not been
retrospectively applied to contracts for which nearly all the revenue amounts had been recognized in accordancewith the previous treatment prior to the beginning of the first quarter of the fiscal year under review, by applying
the method provided for in paragraph 86 of the Accounting Standard for Revenue Recognition.
As a result, for the three months ended in May 31, 2021, net sales increased by 2,080 million yen, cost of
sales decreased by 472 million yen, selling, general and administrative expenses increased by 2,608 million yen,and operating profit, recurring profit, and profit before income taxes each decreased by 55 million yen. In addition,
the balance of retained earnings at the beginning of the period increased by 272 million yen. Due to the applicationof the Accounting Standard for Revenue Recognition, etc., “Notes and accounts receivable—trade,” which waspresented under “Current assets” in the Consolidated Balance Sheets for the previous fiscal year, is instead
included in “Notes and accounts receivable—trade, and contract assets” from the first quarter of the fiscal year
under review. In accordance with the transitional treatment provided for in paragraph 89-2 of the AccountingStandard for Revenue Recognition, the Company has not reclassified financial statements for the previous fiscal
year by using the new presentation method.

(Additional information)(Changes in the presentation method)
While real estate lease revenue and real estate lease expenses were previously recorded in “Non-operating
income,” “Selling, general and administrative expenses,” and “Non-operating expenses,” they are recorded in“Net sales” and “Cost of sales” from the first quarter of the fiscal year under review. The Company positions realestate leasing as one of its major businesses, recognizes real estate lease revenue as a steady source of revenue,
and expects real estate lease revenue to grow along with an increase in the number of leasehold properties. In
addition, the relevant department now appropriately manages the profitability of the real estate leasing business.
In light of these circumstances, in order to present the actual state of the business more appropriately, theCompany has changed the presentation method. Quarterly Consolidated Financial Statements for the threemonths ended May 31, 2020 have been reclassified to reflect this change in the presentation method.
As a result, 351 million yen presented in “Rental income from land and buildings” and 36 million yen
presented in “Other” under “Non-operating income” in the Quarterly Consolidated Statements of Income for thethree months ended May 31, 2020 have been reclassified as “Net sales.” Additionally, 16 million yen presented
in “Selling, general and administrative expenses” and 126 million yen of “Rental expenses” under “Nonoperating expenses” have been reclassified as “Cost of sales.”Furthermore, 2,754 million yen presented in “Other” under “Investments and other assets” in theConsolidated Balance Sheets for the previous fiscal year has been reclassified as “Buildings and structures, net”
of 2,728 million yen and “Other, net” of 26 million yen under “Property, plant and equipment.”(Accounting estimates related to the impact of the spread of COVID-19)
For the first quarter of the fiscal year under review, there are no material changes in the assumptions related tothe impact of the spread of COVID-19 that were stated in “Additional information (Accounting estimates related
to the impact of the spread of COVID-19)” in the securities report for the previous fiscal year.
(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 the9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.

(Notes to Quarterly Consolidated Statements of Income)Due to requests from governments and municipalities in response to COVID-19, many of the stores located inretail facilities, directly-managed stores, resort facilities, and other locations were temporarily closed in regions
including Japan, North America, and Europe. Fixed expenses (including personnel expenses, depreciation, andrent expenses) for stores and resort facilities incurred during the periods of closure were recognized as“Extraordinary loss due to closing and other” in “Extraordinary losses.”10

(Segment information, etc.)
I Three months ended May 31, 2020 (From March 1, 2020 to May 31, 2020)
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)

23,17910,71333,892

8,760

42,653–42,653

303

443

747

493

1,240

(1,240)–23,482(1,690)

11,156(527)

34,639(2,218)9,253
371

43,893(1,846)(1,240)(4)

42,653(1,851)

Total(Notes) 1. The adjustment amount for segment profit (loss) of (4) million yen includes amortization of goodwill of(199) million yen, elimination of intersegment transactions of 1,196 million yen, and corporate expenses
not allocated to reportable segments of (1,001) 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 loss 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.
II 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.

11

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.
3. Information on changes, etc. in reportable segments
As stated in “(Changes in accounting policies),” the Company has applied the Accounting Standard for Revenue
Recognition, etc. from the beginning of the first quarter of the fiscal year under review and changed theaccounting method for revenue recognition. Accordingly, it has also changed the method of calculating profit orloss for reportable segments.
As a result of these changes, for the three months ended May 31, 2021, for the “Apparel Business,” net sales
increased by 2,155 million yen and segment profit decreased by 54 million yen; for the “Lifestyle Business,” netsales and segment profit decreased by 74 million yen and 1 million yen, respectively, compared with those
calculated under the previous method.
In addition, as stated in “(Additional information), (Changes in the presentation method),” “Rental income
from land and buildings,” which was previously recorded under “Non-operating income,” has been reclassified
as “Net sales” from the first quarter of the fiscal year under review. In addition, “Depreciation and amortization,”
which was included in “Selling, general and administrative expenses,” and “Rental expenses,” which wasrecorded under “Non-operating expenses,” have been reclassified as “Cost of sales.” The figures in the segment
information for the first quarter of the previous fiscal year have also been restated to reflect the reclassification.
As a result of these changes, segment profit for the “Apparel Business” increased by 9 million yen, and net sales
and segment profit for the “Lifestyle Business” increased by 387 million yen and 252 million yen, respectively,
compared with before the reclassification.

(Significant events after reporting period)
Not applicable.

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