Consolidated Financial Results
for the Six Months Ended August 31, 2022
[Japanese GAAP]
October 6, 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: October 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 Six Months Ended August 31, 2022 (March 1, 2022 – August 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
Six months ended
Million yen% Million yen% Million yen% Million yen%
August 31, 2022
82,166
1.7
193
–
654
–
476 (93.6)
August 31, 2021
80,785(0.7)(3,294)–(2,862)–
7,448–(Note) Comprehensive income: Six months ended August 31, 2022: 6,340 million yen [(35.6)%]
Six months ended August 31, 2021: 9,842 million yen [–%]
Basic earnings
Diluted earnings
per shareper share
Six months ended
Yen
Yen
August 31, 2022
3.51
3.51
August 31, 2021
54.92
54.81
(Reference) EBITDA (operating profit + depreciation and amortization):
Six months ended August 31, 2022: 2,838 million yen [–%]
Six months ended August 31, 2021: (687) million yen [–%]
(2) Consolidated Financial Position
Total assets

Net assets

Shareholders’equity ratio

Million yen
Million yen
154,529
As of August 31, 2022
81,677
157,727
As of February 28, 2022
77,257(Reference) Shareholders’ equity: As of August 31, 2022: 71,306 million yen
As of February 28, 2022: 66,886 million yen

%
46.1
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
Full year
173,800
3.2
4,100–
4,300 747.7
2,200 (74.3)
16.22(Note) Revision to the performance forecast announced most recently: No(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 28, 2023 (forecast): 9,080 million yen [131.9%]
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 August 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 August 31, 2022:
22,288,168 shares
As of February 28, 2022:
22,287,771 shares
3) Average number of shares outstanding during the period:
Six months ended August 31, 2022:
135,633,704 shares
Six months ended August 31, 2021:
135,607,220 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 forecast and other forward-looking statements herein are based on information currently available to
the Company and certain assumptions that have been deemed reasonable. Actual performance may differ significantly
from these forecasts due to a wide range of factors. For conditions used as the assumptions for the performance
forecast and notes on the use of performance forecast, please refer to “1. Qualitative Information on Quarterly
Financial Results for the Period under Review (3) Explanation of Consolidated Performance Forecast and Other
Forward-looking Information” on page 3 of the Attachments.

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

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

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the six months ended August 31, 2022, the outlook for the Japanese economy remained uncertain with aresurgence of COVID-19 infections, the soaring energy and raw material prices due to the Russo-Ukrainiansituation, and the sudden depreciation of the Japanese yen, despite signs of gradual recovery due to the lifting ofpriority measures to prevent the spread of COVID-19.
In these circumstances, COVID-19 continued to influence overseas production, international distribution,
and attraction of customers to stores and events, but sales at stores that introduced OMO (Online Merges with
Offline) service were particularly strong, and the main brand business recovered owing to customer-oriented
product measures including made-to-order suits. As a result, net sales increased particularly for Onward
Kashiyama Co., Ltd., which is a core operating company. The Group also curbed discount sales and continued
to fully implement a centralized inventory control system, and the global business reforms that had been
conducted since the fiscal year ended February 28, 2020 generated results, thus realizing improvements in grossprofit margin and SG&A ratio, and a return to profit on all profit levels, including operating profit, recurring
profit, and profit attributable to owners of parent.
As a result of the above, consolidated net sales amounted to 82,166 million yen (a 1.7% increase year onyear), consolidated operating profit amounted to 193 million yen (an operating loss of 3,294 million yen for thesame period of the previous fiscal year), consolidated recurring profit amounted to 654 million yen (a recurring
loss of 2,862 million yen for the same period of the previous fiscal year), and profit attributable to owners ofparent amounted to 476 million yen (a 93.6% 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 six months ended August 31, 2022 was 2,838 million yen ((687) million yen for the same
period of the previous fiscal year).
Status by segment is as follows.
[Apparel Business]
In the domestic business, at Onward Kashiyama Co., Ltd., sales increased at OMO-type stores, which introduced
the Click and Try service, and sales of main brands such as Nijyusanku and GOTAIRIKU recovered primarily
at department stores, while the new UNFILO brand developed hit products, thus resulting in strong sales. In
addition, sales surged at Onward Personal Style Co., Ltd., which develops the KASHIYAMA brand, a made-toorder suit business, due to the success of sales promotion strategies. Other domestic apparel companies also
recovered with increased sales and a return to profitability in the domestic business.
In the overseas business, sales decreased, impacted by withdrawal from unprofitable businesses in Europe
under the global business reforms.
As a result, sales increased, with loss significantly reduced in the Apparel Business.
[Lifestyle Business]
Sales increased steadily at Chacott Co., Ltd., which operates a wellness business, due to strong performance ofcollaborative products and new products in its mainstay ballet and fitness wear merchandise line. KOKOBUYCo., Ltd., which conducts a beauty and cosmetics business, continued to see high sales growth, due largely to its
mainstay hair wax, as well as the introduction of a seasonal dry shampoo product and new cosmetic products.
Yamato Co., Ltd., which conducts a gift catalogue business, and Creative Yoko Co., Ltd., which is engaged in a
pet and home life business, also continued to perform strongly. Sales and profit increased for all of the major
companies in the Lifestyle Business.

2

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 second quarter of the fiscal year under review decreased by 3,197 million yen
compared with the end of the previous fiscal year to 154,529 million yen. This was primarily due to decreases
in cash and deposits of 460 million yen, buildings and structures of 1,630 million yen, and notes and accounts
receivable—trade, and contract assets of 2,900 million yen.
Liabilities decreased by 7,618 million yen compared with the end of the previous fiscal year to 72,851
million yen. This was primarily due to decreases in electronically recorded obligations—operating of 2,069
million yen, short-term borrowings of 2,720 million yen, and long-term borrowings of 1,860 million yen.
Net assets increased by 4,420 million yen compared with the end of the previous fiscal year to 81,677
million yen. This was primarily due to profit attributable to owners of parent of 476 million yen, dividends ofsurplus of 1,627 million yen, an increase in valuation difference on available-for-sale securities of 2,657 million
yen, and an increase in foreign currency translation adjustment of 2,876 million yen.
As a result, the shareholders’ equity ratio was 46.1%.
(Status of cash flows)
Cash flows provided by operating activities amounted to 1,399 million yen (an inflow of 962 million yen for thesame period of the previous fiscal year) mainly due to profit before income taxes, a decrease in trade receivables,
and a decrease in trade payables.
Cash flows provided by investing activities amounted to 5,935 million yen (an inflow of 20,022 million yen
for the same period of the previous fiscal year) mainly due to proceeds from sales of shares of subsidiaries
resulting in change in scope of consolidation.
Cash flows used in financing activities amounted to 8,332 million yen (an outflow of 23,966 million yen
for the same period of the previous fiscal year), which primarily included a net increase (decrease) in borrowingsand dividends paid.
As a result, cash and cash equivalents as of the end of the six months ended August 31, 2022 decreased by
460 million yen compared with the end of the previous fiscal year to 14,739 million yen.

(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information
No revisions have been made to the consolidated performance forecast for the full year ending February 28,
2023, which was announced on September 27, 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 August 31, 2022

15,20914,74914,204

11,30323,908
449
2,478
4,509
(252)
60,50824,635
500
2,439
4,789
(347)
58,071

23,00823,371
11,66358,042

21,37723,476
11,36356,217

4,631
4,717
9,349

4,460
4,072
8,532

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

15,772
3,413
3,488
9,229
(194)
31,70896,458
154,529

(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 August 31, 2022

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

8,244
9,791
20,037866
1,053
38
10,23250,265

12,3772,858

10,517
2,827

247

255

2,503
6,722
24,70980,4702,559
6,428
22,58672,851

30,07950,39015,391(20,831)75,03030,07950,390
14,239(20,831)
73,878(1,646)
1(5,698)(328)(472)(8,144)122
10,24877,257
157,727

1,010
63(5,698)2,548(495)(2,572)
122
10,24881,677
154,529

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (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
Subsidies for employment adjustment, etc.
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

For the six months
ended August 31, 2021
80,78539,76741,01844,313(3,294)

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

20
91
109
450
573
1,244

13
106
708
109
178
1,116

221

131

42

34

548
812
(2,862)

489
655
654

17,089
92
2,944
244

120
1,306

–
20,370
1,062
1,829
222
1,968
310
5,393
12,114
4,525
7,589
140
7,448

6

–
–
28
1,455
4

–
470

–
11
485
1,624
1,341
282
(193)
476

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

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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

For the six months
ended August 31, 2021
7,589

For the six months
ended August 31, 2022
282

818
(43)
453
1,011
14
2,253
9,842

2,657
61

9,682
159

6,048
292

7

–
3,362
(23)
6,057
6,340

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months
ended August 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Loss (gain) on sales of shares of subsidiaries andassociates
Loss (gain) on disposal of non-current assets
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Purchase of long-term prepaid expenses
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

8

For the six months
ended August 31, 2022

12,114
2,392
222
382
86
(93)
7
(111)
221
4,369
1,573
(3,396)

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

(1,114)(1,306)(17,055)
998
596
161
(327)
(1,802)
2,334
962

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

(31)
39
(1,658)28,987
(7)
504
(856)
864
(17)

(11)
11
(1,478)(8,366)

–

1,620

7,652

(1,054)20,022(1,574)
5,935(19,262)(2,526)(1,627)(550)(23,966)973(2,008)21,27019,261(3,868)(2,193)(1,627)(644)(8,332)537(460)
15,19914,739

–
(1)
1,306
(204)
259
(22)

(4) Notes to Quarterly Consolidated Financial Statements(Uncertainties of entity’s ability to continue as going concern)
Not applicable.
(Notes when there are significant changes in amounts of shareholders’ equity)
Not applicable.
(Changes in significant subsidiaries during the period under review)
Onward Beach Resort Guam, Inc., which was the Company’s consolidated subsidiary, was excluded from thescope of consolidation in the first quarter of the fiscal year under review due to the sale of all its shares that thesubsidiary of the Company owned.
This change is not applicable to the second quarter of the fiscal year under review.
(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.

9

(Segment information, etc.)
I Six months ended August 31, 2021 (From March 1, 2021 to August 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 (loss)

LifestyleBusiness

Total

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

(Domestic)(Overseas)

52,182

10,04662,22918,55680,785–80,785

323

589

912

619

1,532

(1,532)–52,506(3,637)

10,635(487)

63,141(4,124)

19,175
1,061

82,317(3,063)(1,532)(231)

80,785(3,294)

Total(Notes) 1. The adjustment amount for segment profit (loss) of (231) million yen includes amortization of goodwillof (382) million yen, elimination of intersegment transactions of 1,842 million yen, and corporate
expenses not allocated to reportable segments of (1,691) million yen. Corporate expenses are mainly
general and administrative 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.

10

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

LifestyleBusiness

Total

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

(Domestic)(Overseas)

56,043

5,773

61,817

20,34882,166–82,166

557

928

1,485

718

2,203

(2,203)–56,60157

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

21,066
1,664

84,370716(2,203)(522)

82,166
193

Total(Notes) 1. The adjustment amount for segment profit (loss) of (522) million yen includes amortization of goodwillof (401) million yen, elimination of intersegment transactions of 1,696 million yen, and corporate
expenses not allocated to reportable segments of (1,817) million yen. Corporate expenses are mainly
general and administrative expenses that are not attributable to 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.

11