Consolidated Financial Results
for the Three Months Ended May 31, 2023
[Japanese GAAP]
July 6, 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: July 14, 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 Three Months Ended May 31, 2023 (March 1, 2023 – May 31, 2023)(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, 2023
49,907
12.0
5,380
168.3
4,861
84.3
3,348
83.6
May 31, 2022
44,551
(3.2)
2,005
74.8
2,638
33.4
1,823
(11.5)(Note) Comprehensive income: Three months ended May 31, 2023: 2,706 million yen [(48.6)%]
Three months ended May 31, 2022: 5,267 million yen [46.6%]
Basic earnings
Diluted earnings
per shareper share
Three months ended
Yen
Yen
May 31, 2023
24.67
24.64
May 31, 2022
13.44
13.42
(Reference) EBITDA (operating profit + depreciation and amortization):
Three months ended May 31, 2023: 6,545 million yen [94.5%]
Three months ended May 31, 2022: 3,365 million yen [37.5%](2) Consolidated Financial Position
Total assets
Net assets
Million yen
Million yen
As of May 31, 2023
164,387
80,887
As of February 28, 2023
159,198
85,073(Reference) Shareholders’ equity: As of May 31, 2023: 75,742 million yen
As of February 28, 2023: 74,747 million yen

Shareholders’ equity ratio
%
46.1
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

–

16.00

16.00

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
1H (cumulative)
90,0009.5
4,000–
3,400 419.4
2,400 403.9
17.68
Full year
188,800
7.2
10,000 91.8
9,000
69.2
5,000
63.3
36.84
(Notes) 1. Revision to the performance forecast announced most recently: Yes
2. The year-on-year growth rate of operating profit for the first half of the fiscal year ending February 29,
2024 exceeded 1,000%, and is therefore indicated as “–.”(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 29, 2024 (forecast): 15,100 million yen [45.6%]
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 May 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 May 31, 2023:
22,204,604 shares
As of February 28, 2023:
22,204,488 shares
3) Average number of shares outstanding during the period:
Three months ended May 31, 2023:
135,717,142 shares
Three months ended May 31, 2022:
135,633,824 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 andOther 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(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) ............................................................................................................... 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, 2023, the Japanese economy showed a moderate recovery trend as
economic activities continued to normalize due to the easing of mask-wearing rules and COVID-19’s
reclassification as a category V infectious disease, and with the recovery of inbound tourism demand helping tobolster improvement in business sentiment, among other factors. On the other hand, the outlook remains
uncertain, as there are concerns that consumers will become more defensive in their lifestyles due to climbing
inflation on the back of global rises in resource prices and exchange rate fluctuations.
Under these circumstances, the Group saw a steady increase in the number of customers visiting both its
physical stores and online store, with sales growing significantly. This was due to factors such as increased
awareness of the Click and Try service offered in OMO (Online Merges with Offline)-type stores by our core
operating company, Onward Kashiyama Co., Ltd., and the success of marketing initiatives using social media.
Furthermore, the global business reforms that we have been undertaking since the fiscal year ended February 29,
2020, have clearly borne fruit, and efforts to improve the efficiency of the product supply chain progressed,
which resulted in an improvement in gross profit margin while the SG&A ratio decreased significantly.
Additionally, we have initiated a capital and business alliance with fashion company WEGO Co., Ltd., withthe aim of tapping into a new customer base.
As a result of the above, consolidated net sales amounted to 49,907 million yen (a 12.0% increase year onyear), consolidated operating profit was recorded at 5,380 million yen (a 168.3% increase year on year),consolidated recurring profit was recorded at 4,861 million yen (an 84.3% increase year on year), and profit
attributable to owners of parent amounted to 3,348 million yen (an 83.6% increase year on year).
Furthermore, the Group has adopted EBITDA (operating profit + depreciation and amortization) as a key
management 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&As, etc.
EBITDA for the three months ended May 31, 2023 was 6,545 million yen (a 94.5% increase year on year).
Status by segment is as follows.
[Apparel Business]
In the domestic business, by focusing on customer-centric product development and sales services, Onward
Kashiyama Co., Ltd.’s key brands, namely Nijyusanku and GOTAIRIKU, among others, maintained strong
performance. Additionally, sales were favorable for “steppi,” which became an independent brand from the D2C
brand UNFILO. Sales at Onward Personal Style Co., Ltd., which develops the KASHIYAMA brand, increased
significantly due to the strong performance of high-priced products and store renovations, among other factors.
In the overseas business, sales increased in Europe, the U. S., and Asia, respectively, and the higher
utilization rate of the Dalian factory contributed to improved profitability.
As a result, both sales and profit increased in the Apparel Business.
[Lifestyle Business]
Chacott Co., Ltd., which operates a wellness business, saw strong performance in the sales of its mainstay ballet
goods as well as Chacott COSMETICS. Creative Yoko Co., Ltd., which operates a pet and home life business,
saw an expansion in sales due to the success of efforts to open new stores as well as development of new andother products in its pet business. Yamato Co., Ltd., which operates a gift catalogue business, also continued toperform well.
As a result, both 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 first quarter of the fiscal year under review increased by 5,188 million yen
compared with the end of the previous fiscal year to 164,387 million yen. This was primarily due to increases innotes and accounts receivable—trade, and contract assets of 1,843 million yen and merchandise and finishedgoods of 1,837 million yen.
Liabilities increased by 9,374 million yen compared with the end of the previous fiscal year to 83,500
million yen. This was primarily due to increases in short-term borrowings of 9,040 million yen and electronicallyrecorded obligations—operating of 1,410 million yen.
Net assets decreased by 4,186 million yen compared with the end of the previous fiscal year to 80,887
million yen. This was primarily due to profit attributable to owners of parent of 3,348 million yen, dividends ofsurplus of 1,628 million yen, a decrease in valuation difference on available-for-sale securities of 287 million
yen, a decrease in foreign currency translation adjustment of 421 million yen, and a decrease in non-controllinginterests of 5,181 million yen.
As a result, the shareholders’ equity ratio was 46.1%.
(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 April 6, 2023, in light of the Company’s first 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 May 31, 2023

13,805

13,58013,981

15,82527,297
486
2,935
4,185
(437)
62,255

29,135
332
3,015
4,713
(425)
66,17819,49823,32810,30353,13019,44823,341
10,40753,196

4,025
5,081
9,106

3,833
5,177
9,011

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

17,520
5,465
3,437
9,873
(296)
36,00098,208164,387(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 May 31, 2023

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

7,459
14,64727,640936
1,413
70
11,45063,617

8,657
2,886

7,755
2,856

262

266

2,563
6,630
21,00074,1252,593
6,410
19,882
83,50030,07950,347
16,042(20,748)
75,721

30,07950,347
17,762(20,748)
77,4402,620
30(5,698)
1,441
631
(973)
82
10,24385,073
159,198

2,332
39(5,698)1,020
607(1,698)82
5,061
80,887
164,387

(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
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidy income
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 shares of subsidiaries and associates
Other
Total extraordinary income
Extraordinary losses
Impairment loss
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 three months
ended May 31, 2022
44,551
19,83324,71822,7122,005

For the three months
ended May 31, 2023
49,907
20,92828,97923,599
5,380

6
0
860
84
–
95
1,046

31
4
–
–
35
49
120

52

175

15

1

–
346
414
2,638

351
109
639
4,861

1,317
25
1,343

–
–
–

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

152
–
152
4,709
1,278
3,430
82
3,348

6

Quarterly Consolidated Statements of Comprehensive Income
Three months ended May 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
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
1,505

For the three months
ended May 31, 2023
3,430

1,300
16
2,456
(11)
3,762
5,267

(287)
8
(421)
(23)
(724)
2,706

5,099
168

2,623
82

(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 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 theapplication of PITF No. 42.

8

(Segment information, etc.)
I 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.

9II Three months ended May 31, 2023 (From March 1, 2023 to May 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)

35,4843,240

38,725

11,182

49,907–

49,907

254

561

815

458

1,274

(1,274)–35,738
4,389

3,801
(300)

39,5404,089

11,641
1,609

51,181
5,698(1,274)(318)

49,907
5,380

Total

(Notes) 1. The adjustment amount for segment profit (loss) of (318) million yen includes amortization of goodwillof (198) million yen, elimination of intersegment transactions of 892 million yen, and corporate expenses
not allocated to reportable segments of (1,011) 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