Consolidated Financial Results
for the Three Months Ended May 31, 2024
[Japanese GAAP]
July 4, 2024
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: Shohei Yoshida, Director in charge of Finance, Accounting, Investor Relations
Phone: +81-3-4512-1030
Scheduled date of filing quarterly securities report: July 12, 2024
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, 2024 (March 1, 2024 – May 31, 2024)(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, 2024
51,376
2.9
5,074
(5.7)
5,195
6.9
4,019
20.1
May 31, 2023
49,907
12.0
5,380
168.3
4,861
84.3
3,348
83.6
(Note) Comprehensive income: Three months ended May 31, 2024: 7,799 million yen [188.2%]
Three months ended May 31, 2023: 2,706 million yen [(48.6)%]
Basic earnings
Diluted earnings
per shareper share
Three months ended
Yen
Yen
May 31, 2024
29.61
29.58
May 31, 2023
24.67
24.64
(Reference) EBITDA (operating profit + depreciation and amortization):
Three months ended May 31, 2024: 6,247 million yen [(4.6)%]
Three months ended May 31, 2023: 6,545 million yen [94.5%](2) Consolidated Financial Position
Total assets
Net assets
Million yen
Million yen
As of May 31, 2024
172,839
82,443As of February 29, 2024
171,362
84,995(Reference) Shareholders’ equity: As of May 31, 2024: 82,372 million yen
As of February 29, 2024: 79,796 million yen

Shareholders’ equity ratio
%
47.7
46.6

2. Dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end
Yen

Yen

Year-end

Total

Yen

Yen

Yen

–

20.00

20.00

–

24.00

24.00

Fiscal year ended––
February 29, 2024
Fiscal year ending–
February 28, 2025
Fiscal year ending–
February 28, 2025 (Forecast)(Note) Revision to the forecast for dividends announced most recently: No

3. Consolidated Performance Forecast for the Fiscal Year Ending February 28, 2025 (March 1, 2024 - February
28, 2025)(% 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%

Yen

1H (cumulative)
94,900
5.0
5,500
9.5
5,500
24.6
4,050
Full year
200,000
5.5
12,500 11.0
12,20020.5
8,250(Note) Revision to the performance forecast announced most recently: Yes(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 28, 2025 (forecast): 17,700 million yen [10.3%]
Full year ended February 29, 2024: 16,052 million yen [54.7%]

Million yen%

Million yen%

Million yen

%

41.5
24.8

29.84
60.78

* 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 Italia S.r.l.)(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: None
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, 2024:
157,921,669 shares
As of February 29, 2024:
157,921,669 shares2) Total number of treasury shares at the end of the period:
As of May 31, 2024:
22,183,889 shares
As of February 29, 2024:
22,193,554 shares
3) Average number of shares outstanding during the period:
Three months ended May 31, 2024:
135,735,253 shares
Three months ended May 31, 2023:
135,717,142 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.

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(Segment information, etc.) ......................................................................................................... 9

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, 2024, the Japanese economy showed signs of gradual recovery, witheconomic activity normalizing on recovery in personal consumption and corporate earnings, and theemployment and income conditions improving. Nevertheless, the outlook remains uncertain due to prolonged
conflicts in the Middle East and Ukraine, concerns about the future of the Chinese economy, and soaring energy
and raw material prices. In addition, while the apparel industry saw some recovery in inbound demand due tothe weak yen, there are concerns about consumers’ rising awareness toward conscious spending.
In this environment, the Group’s net sales increased due to robust sales of new products responding to climatechange and ongoing growth in the use of the “Click and Try” OMO (Online Merges with Offline) service. The
gross profit margin declined as a result of planned optimization of inventory levels, but the SG&A-to-sales ratio
also declined as a rise in personnel expenses accompanying wage increases and higher advertising expenses
were offset by more efficient store operations through the expansion of multi-brand stores.
As a result of the above, on a consolidated basis, net sales amounted to 51,376 million yen (2.9% increaseyear-on-year), operating profit to 5,074 million yen (5.7% decrease year-on-year), recurring profit to 5,195
million yen (6.9% increase year-on-year), and profit attributable to owners of parent to 4,019 million yen(20.1% increase year-on-year).
Furthermore, amid efforts to accelerate growth through enhancement and expansion of business foundations
that utilize creation of new businesses, M&A, etc., the Group has adopted EBITDA (operating profit +depreciation and amortization) as a key management indicator to enable convenient comparisons between
companies regardless of differences in accounting standards.
EBITDA for the three months ended May 31, 2024, was 6,247 million yen (4.6% decrease year on year).
Results by segment were as follows.
Status by segment is as follows.
Effective from the first quarter (the three months ended May 31, 2024), Onward Holdings has changed its
reportable segments. The following comparison uses a restatement of figures for the three months ended May
31, 2023, to reflect the new segmenation.
[Domestic Business]
In Japan, the core operating company Onward Kashiyama Co., Ltd. expanded the number of OMO-type stores
offering the “Click and Try” service that is being rolled out nationwide and worked to develop new products
responding to climate change. This resulted in strong sales of mainstay brands Nijyusanku and J.PRESS and the new
brand UNFILO.
Onward Personal Style Co., Ltd., which operates the KASHIYAMA brand, achieved significant sales growth due
to an increase in new customers, including young people and women, thanks to successful promotional measuresusing digital advertising.
Chacott Co., Ltd., posted steady sales of seasonal products in the Chacott COSMETICS line.
In addition, despite a lower gross profit margin caused by a planned optimization of inventory levels, the SG&A-tosales ratio also fell with promotion of more efficient store operations through an expansion of multi-brand stores.
As a result, the domestic business posted higher sales but lower operating profits.
[Overseas Business]
In the overseas business, sales in Asia expanded on improvement in the Dalian plant’s utilization rate. In the J.PRESS
business in the US, e-commerce sales grew.
In addition, JOSEPH, a contemporary brand originating in London in the UK, experienced deteriorating profitability
due to a difficult business environment, especially in the wholesale business.
As a result, the overseas business posted a wider operating loss despite higher sales.

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 1,476 million yen
compared with the end of the previous fiscal year to 172,839 million yen. This was primarily due to increases innotes and accounts receivable—trade, and contract assets of 309 million yen and investment securities of 2,364
million yen, and a decrease in merchandise and finished goods of 1,015 million yen.
Liabilities increased by 4,028 million yen compared with the end of the previous fiscal year to 90,395
million yen. This was primarily due to increases in short-term borrowings of 1,618 million yen and long-termborrowings of 4,852 million yen, and a decrease in notes and accounts payable—trade of 1,987 million yen.
Net assets decreased by 2,551 million yen compared with the end of the previous fiscal year to 82,443
million yen. This was primarily due to an increase of 4,019 million yen from profit attributable to owners ofparent, an increase in foreign currency translation adjustment of 1,963 million yen, an increase in valuationdifference on available-for-sale securities of 1,674 million yen, a decrease in surplus of 2,451 million yen due tochanges in the fiscal year-end of consolidated subsidiaries, a decrease of 2,714 million yen from dividends ofsurplus, and a decrease in non-controlling interests of 5,122 million yen.
As a result, the shareholders’ equity ratio was 47.7%.
(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information
In the three months ended May 31, 2024, net sales and operating profit generally progressed as planned according
to the consolidated performance forecast announced on April 4, 2024.
Recurring profit and profit attributable to owners of parent are expected to exceed the previous forecast due
to the strong performance of associates accounted for using equity method and the recording of a share of profit
of entities accounted for using equity method, among other factors.
As a result of the above, the consolidated performance forecast for the first half and full year has beenrevised upward as follows:
Revisions to the consolidated performance forecast for the first half of the fiscal year ending February 28, 2025
(March 1, 2024 - August 31, 2024)
Profit attributable to
Basic earnings
Recurring profit
owners of parent
per share
Million yen

Million yen

Yen

5,300
5,500
200
3.8

3,800
4,050
250
6.6

28.00
29.84

4,412

2,862

21.09

Previous forecast (A)Revised forecast (B)Change (B-A)
Change rate (%)*(Reference) First half of the fiscal
year ended February 29, 2024––

Revisions to the consolidated performance forecast for the full year ending February 28, 2025 (March 1, 2024 February 28, 2025)
Profit attributable to
Basic earnings
Recurring profit
owners of parent
per sharePrevious forecast (A)Revised forecast (B)Change (B-A)
Change rate (%)*(Reference) Fiscal
February 29, 2024

year

Million yen

Million yen

Yen

12,00012,200
200
1.7

8,000
8,250
250
3.1

58.94
60.78

10,126

6,611

48.72

ended

3

–
–

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of February 29, 2024
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, 2024

14,133

13,346

15,933

16,24235,257
456
3,244
4,675
(301)
73,40034,241
423
3,329
5,053
(365)
72,271

19,267
22,626
8,573
50,46819,445
22,6958,265
50,405

3,289
5,533
8,822

3,141
6,200
9,342

16,600
7,774
4,805
9,585
(93)
38,67197,962
171,362

18,964
7,829
4,423
9,700
(98)
40,819100,567
172,839

(Million yen)
As of February 29, 2024
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, 2024

8,740
13,871
25,412
965
1,296
216
11,84762,350

6,753
13,96527,030609
1,258
35
12,072
61,725

12,255
2,752

17,107
2,725

290

44

2,629
6,088
24,01786,3672,680
6,111
28,67090,39530,07950,342
21,165(20,737)
80,84930,07950,33720,018(20,727)
79,7072,431
4(5,837)451
1,896(1,052)76
5,122
84,995
171,3624,106
17(5,837)
2,415
1,963
2,664
71
–
82,443
172,839

(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
Share of profit of entities accounted for using equity
methodForeign exchange gains
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 non-current assets
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on liquidation of subsidiaries and associates
Other
Total extraordinary losses
Profit before income taxes
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the three months
ended May 31, 2023
49,907
20,92828,97923,5995,380

For the three months
ended May 31, 2024
51,37622,232
29,14324,069
5,074

31
4

14
52

–

131

–
35
49
120

71
–
31
302

175

83

1

–

351
109
639
4,861

–
97
181
5,195

–
–

944
944

152
–
–
152
4,709
1,278
3,430
82
3,348

31
1,445
5
1,482
4,658
576
4,081
61
4,019

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
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

7

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

For the three months
ended May 31, 2024
4,081

(287)
8
(421)
(23)

1,665
12
1,959
66

–

13

(724)
2,706

3,717
7,799

2,623
82

7,737
61

(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.

8

(Segment information, etc.)
I 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)Domestic
Business
Net sales(1) Net sales to outside customers(2) Intersegment sales or transfers
Total
Segment profit (loss)

Overseas
Business

46,027250
46,278
5,903

3,879
578
4,458
(262)

Total

49,907829
50,736
5,640

Amount recordedin Consolidated
Financial
Statements(Note 2)Adjustments(Note 1)–

49,907

(829)
(829)
(259)

49,907
5,380–(Notes) 1. The adjustment amount for segment profit (loss) of (259) million yen includes amortization of goodwillof (198) million yen, elimination of intersegment transactions of 950 million yen, and corporate expenses
not allocated to reportable segments of (1,011) million yen.
Corporate expenses are mainly general and administrative expenses that are not attributable to reportablesegments.
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, 2024 (from March 1, 2024 to May 31, 2024)
1. Information on net sales and profit or loss by reportable segment(Million yen)Domestic
Business
Net sales(1) Net sales to outside customers(2) Intersegment sales or transfers
Total
Segment profit (loss)

47,306326
47,633
5,595

Overseas
Business

4,069
707
4,776
(402)

Total

51,376
1,033
52,410
5,192

Amount recordedin Consolidated
Financial
Statements(Note 2)Adjustments(Note 1)–

51,376(1,033)(1,033)(117)

51,376
5,074–(Notes) 1. The adjustment amount for segment profit (loss) of (117) million yen includes amortization of goodwillof (208) million yen, elimination of intersegment transactions of 1,036 million yen, and corporate
expenses not allocated to reportable segments of (945) million yen.
Corporate expenses are mainly general and administrative expenses that are not attributable to reportablesegments.
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.
3. Changes in reportable segments
As of the first quarter of the fiscal year under review, we have changed our reportable segments from the previous
categories of “Apparel Business (Domestic),” “Apparel Business (Overseas),” and “Lifestyle Business” to“Domestic Business” and “Overseas Business.”
This change is aimed at conducting business management more in line with actual conditions by integrating
both segments, as the boundaries between apparel and lifestyle are becoming less distinct amid the ongoingdiversification of the market.
The segment information for the first quarter of the previous fiscal year has been prepared and presented
based on the new categorization.

10