Presentation of Results for the Fiscal Year
Ended on February 29, 2008

Results for the Fiscal Year 2008 andSummary of Priority Policies

Results for Fiscal 2008
Non-Consolidated(¥ billion)

Fiscal 2008 Fiscal 2007

% change

Net sales＊，＊＊＊
197.5 ＊，＊＊＊
200.2

＋＊＊＊
△2.7

Operatingincome13.7 ＊，＊＊＊
16.5
＊，＊＊＊

＋＊＊＊
△2.8 （△17.0％）（＋＊＊％）

Ordinary
income17.7 ＊，＊＊＊
20.4
＊，＊＊＊

＋＊＊＊
△2.7 （△13.5％）（＋＊＊％）（7.0％）（10.2％）

12.9
Net income ＊，＊＊＊

6.8
＊，＊＊＊
（3.4％）（6.5％）

Operating Income（＋＊＊％）（△1.3％）（8.3％）（9.0％）

Consolidated
Net Income

Net Sales
Unit:100 million

300

3200

3186
+6.1
＋＊＊＊

（89.2％）（＋＊＊％）

3300

250
3100

*Excluding Onward Trading

Consolidated(¥ billion)

Fiscal 2008 Fiscal 2007
Net sales

287.0 ＊，＊＊＊
318.6
＊，＊＊＊

200

3000
2870

% change
△31.6
＋＊＊＊

（△9.9％）（＋＊＊％）

150
242 2712

228
OperatingincomeOrdinary
income18.6 ＊，＊＊＊
25.4
＊，＊＊＊
（6.5％）（8.0％）
24.1 ＊，＊＊＊
27.4
＊，＊＊＊
（8.4％）（8.6％）

12.2
Net income ＊，＊＊＊（4.3％）For reference
IMPACT 21 CO., LTD.
Results for fiscal
2007

11.4
＊，＊＊＊
（3.6％）Net sales
OperatingincomeOrdinary
incomeNet income△6.8 （△26.8％）＋＊＊＊（＋＊＊％）

247 2831

254

2800

2677

100

2700

△3.3 （△12.0％）＋＊＊＊（＋＊＊％）+0.8＋＊＊＊（6.8％）（＋＊＊％）

186

2600
50
130

¥***billion（**％）¥30.6billion （△0.3％）¥**
billion （**％）¥3.8billion（△13.5％）¥**¥3.9 billion
billion （**％）（2.8％）¥**¥2.2 billion （**％）（33.3％）

2900

102

110

114

0

122

2500
2400

2004

2005

2006

2007

2008 (Fiscal year)

1Summary of Priority Policies in FY2008
Transition to a Pure Holding Company System （From Sept. 1）
New System for Strengthening Group Management and Accelerating Growth Strategy

Apparel Business
In JapanOnward Kashiyama

Decline in profitability due to weakness in apparel market andmore intense competition
Shifted to selection and concentration of management resources insecond half, began to prepare base for new fiscal year
・Eliminated unprofitable brands, concentrated resources (people, goods, capital) in core brands
・Largest brand NIJYUSANKU regained profitability in the second half（¥ million）

Interim Period (actual)
AmountSecond Half (actual)

Full Year (actual)% ChangeAmount% ChangeAmount% Change

Net Sales

94,469△2.0％

103,071△0.7％

197,540△1.3％

Operating Income

4,748(△1,681)△29.6％△29.6％

9,028(△1,350)△8.4％

13,776(△3,031)△17.0％（new brands）¾The second half was below the previous year, but reforms were implemented
ONWARD TRADING

Expanded non-store sales and promoted efficiency
・Organizational reform for core businesses ⇒ Made former Oak business more efficient2Summary of Priority Policies in FY2008

Overseas

EuropeEstablished production platform of GIBO’ CO. GROUP.
・Attained growth in sales and earnings above initial plan through improved productivity
・Incorporated Frassineti (bags) and Corporate (apparel) of Italy into Group and established high-quality
production platform

Improved profitability of JOSEPH GROUP
・Stable expansion in retail sales
・Began sales in Italy, Germany and other new markets

Asia

Accelerated growth accompanied by profitability
・Attained increases in sales and income above initial targets through expansion of sales in existing
stores and opening of new stores

Other Related Businesses
Resort BusinessImproved earnings base・Improvement in profitability through synergies among hotel, water park and golf course businesses
3Operating Conditions by Business Segment(¥ million）

Interim period (actual)
Operating
Net Sales
incomeSecond half (actual)
Net Sales

OperatingincomeFull year (actual)
Net Sales

OperatingOperatingincomeincomeAmounts （Change）

Amounts （Change）

Amounts （Change）

Amounts （Change）

Amounts （Change）

Amounts
Amounts（Change）（Change）

Apparel

135,534（△9.9％）＊＊，＊＊＊

6,724（△34.3％）＊＊，＊＊＊

143,829（△10.6％）＊＊，＊＊＊

11,340（△15.7％）＊＊，＊＊＊

279,363（△10.3％）＊＊，＊＊＊

18,064（△23.7％）＊＊，＊＊＊

Services

11,545 （△5.6％）＊＊，＊＊＊

Resorts

3,236 （42.9％）＊＊，＊＊＊

Total before
eliminations

150,315（△8.9％）＊＊，＊＊＊

Eliminations forconsolidation
Consolidated
Total

140,836（△8.0％）＊＊，＊＊＊

（＊＊％）

（＊＊％）

（＊＊％）

（5.0％）（＊＊％）

303 （△39.6％）＊＊，＊＊＊（2.6％）

（＊＊％）

2
（
）
＊＊，＊＊＊（0.1％）

（＊＊％）

7,029
（△33.2％）＊＊，＊＊＊（4.7％）（＊＊％）

10,159（△27.2％）＊＊，＊＊＊（＊＊％）

2,807 （5.2％）＊＊，＊＊＊（＊＊％）

156,795（△11.7％）＊＊，＊＊＊

（＊＊％）

（＊＊％）

△9,479（ー）＊＊，＊＊＊

378（－）＊＊，＊＊＊

（＊＊％）

（＊＊％）

（＊＊％）

（＊＊％）

7,407
（△32.3％）＊＊，＊＊＊（5.3％）(ratio)（＊＊％）（7.9％）

（＊＊％）

（＊＊％）

（6.5％）（＊＊％）△ 22 （ ）＊＊，＊＊＊（△0.2％） （＊＊％）

21,704（△17.1％）＊＊，＊＊＊△23 （ ）＊＊，＊＊＊（△0.8％） （＊＊％）＊＊，＊＊＊
6,043 （22.5％）△21 （ ）＊＊，＊＊＊（△0.3％） （＊＊％）

11,295（△17.7％）＊＊，＊＊＊

307,110（△10.3％）＊＊，＊＊＊

18,324（△24.4％）＊＊，＊＊＊（7.2％）

（＊＊％）

（＊＊％）

281 （△68.6％）＊＊，＊＊＊（1.3％）（6.0％）

（＊＊％）

（＊＊％）

（＊＊％）

△10,599（ー）＊＊，＊＊＊△74（ ー）＊＊，＊＊＊△20,078（ー）＊＊，＊＊＊

304（ー）＊＊，＊＊＊

（＊＊％）

（＊＊％）

（＊＊％）

（＊＊％）

146,196（△11.7％）＊＊，＊＊＊（＊＊％）

11,221（△22.5％）＊＊，＊＊＊（7.7％）(ratio)（＊＊％）

287,032（△9.9％）＊＊，＊＊＊
（＊＊％）

（＊＊％）

18,628（△26.8％）＊＊，＊＊＊（6.5％）（＊＊％）(ratio)4Operating Summary: Japan and Overseas
Japan

Overseas＜Sales＞ （ % change ）＜Sales＞（ % change ）EuropeONWARD KASHIYAMA＊＊billion
197.5billion （＊.＊％）（△1.3％）
CO., LTD.
ONWARD TRADING
CO., LTD.

GIBO’CO. GroupJOSEPH Group34.9billion（7.4％）

6.3billion（37.7％）

4.3billion（35.2％）＊＊billion
21.5billion （＊.＊％）（△5.5％）

Other companies

11.1billion （＊.＊％）（△1.3％）CHACOTT CO., LTD. ＊＊billion

4.6billion （＊.＊％）（11.4％）
BUS STOP CO., LTD. ＊＊billion

Asia
ONWARD FASHION TRADING(China) CO., LTD.
SHANGHAI ONWARD FASHION
CO., LTD.

Other companies
ONWARD CREATIVE CENTER＊＊billion（＊.＊％）
6.2billion（△29.4％）
CO., LTD.

ACROSS TRANSPORT＊＊billion（＊.＊％）
11.8billion（△12.1％）
CO., LTD.

United States
J.PRESS, INC.
ONWARD BEACH RESORT GUAM,INC.
ONWARD GOLF RESORT GUAM, INC.

Other companies＊8.9billion（△78.7％）＊billion （＊.＊％）

Total in Japan¾Net Sales

Total Overseas

261.6billion （△13.4％）¾Ordinary Income 15.4billion （△29.5％）(ratio)Other companies（5.9％）¾Net Sales¾Ordinary Income(ratio)45.5billion（13.0％）

2.8billion（25.3％）（6.2％）
Totals are simple sums before eliminations

5

Three-Year Medium-Term Management
Plan（Fiscal2009～2011）

Takeshi Hirouchi
Chairman and CEO

Background for Medium-Term Plan
Changes in Operating Environment¾Shift to “borderless”
environmentMore intense, global competition¾ Expansion of world
marketCreation of new markets overseas(BRICS), Active international
development of corporations¾ Expansion incapital accumulation

Growing world monetary liquidity
Movement toward international M&A¾ Globalization of the domestic
marketAccelerated entry of foreign companies
and brands; Inflow of foreign consumers,
especially from Asia

¾Changes in population
dynamics

Advent of demographic changes:
Smaller families, aging, population
declineChanges in Industry¾Decline in existing target¾Changes in markets anddistribution channels
Greater inter-industry
competition¾Advent of mega-competition

Decline in number of children,
young people, and baby boomers
Expansion of station and fashionbuildings; Realignment of department
stores and decline in their sales;
Expansion in Internet and outlet sales¾Changes in
consumer values¾Deterioration in
management
environment
Leading overseas brands enter Japan
Luxury/low-price bipolarization

Greater diversity in values
Expansion in clothing accessory market
Shift from buying goods to enjoying
pursuits
Growing awareness of natural environment
and ecological issues
Shortage of sales personnel, increase inmaterial costs
Deterioration in consumer mind due
to financial uncertainty
Slower growth in wages, inflation

Need for Quick Response to Change
6Basic Group Strategy
Corporate Philosophy

Onward defines its business domain as “creating a world of fashion that
adds refreshment and color to our lives, and, by offering fashion as anintegral part of consumer culture, creates new values and lifestyles that
contribute to richer lives for all people.

Corporate Policies

Brand-Leveraged Management

Creation of Brand Value

Increasing Corporate Value
7

Directions for Group Strategy
Domestic BusinessStable Expansion in
Earnings

Overseas Business
Trend toward “businesswithout borders”

Aggressive Expansion

Success Overseas Will Bring Success in Japan

Strengthen Group Management

Holding Company StructureGroup Growth Strategy

Further Improvement inManagement Efficiency¾ Speedy expansion of each Group company¾ Expansion of business domains (retailing, life-style goods, etc.)¾ Aggressive M&A

8

Group Business Policies and Overview
Group
Expansion ofGroup corporate
corporate expansion
expansion strategy
strategy ◇◇Expansionof businessbusiness inin eacheach businessbusiness domains
domains
Expansion
Expansion ofof businessbusiness domains
domains◇
M&A and◇M&A
and overseas
overseas businessbusiness strategy
strategy

Realize
Synergies among
Realize synergies
synergies among
among businesses
businesses ◇◇Synergies
among Group
Group companies
companies inin JapanJapan andand overseas
overseas

Contribute
Contribute toto stakeholder
stakeholder value
value◇
Return toto shareholders,shareholders, contribution
contribution toto society,society, environmental
environmental preservation,
preservation, highhigh compliancecompliance standards
standards◇Return

ApparelApparelBusiness
Business

ONWARD
ONWARDTRADINGTRADINGONWARD
ONWARDKASHIYAMAKASHIYAMA
Co.,
Co., Ltd.
Ltd.

JOSEPHJOSEPH Group
Group
（UK）
（UK）

Service
ServiceBusiness
Business

BUS
BUS STOP
STOP
CO.,
CO., LTD.
LTD.

CHACOTTCHACOTT
CO.,CO., LTD.
LTD.

ACROSSACROSS
TRANSPORT
TRANSPORT
CO.,CO., LTD.
LTD.

ONWARD
ONWARD
CREATIVE
CREATIVE
CENTERCENTER
CO.,
CO., LTD.
LTD.

ResortResortBusiness
Business

ONWARD
ONWARDRESORT&GOLF
RESORT&GOLF
CO.,LTD.
CO.,LTD.

GIBO’CO.
GIBO’CO. GroupGroup（ITALY）（ITALY）

9

Group Medium-Term Targets
Consolidated Targets（Unit: ¥ million）

Planned for Fiscal 2011

Fiscal 2008 (Actual)

Net sales

350,000＊＊＊，＊＊＊

287,032＊＊＊，＊＊＊（Ratio）

（＊＊％）

（＊＊％）

30,000＊＊＊，＊＊＊

18,628＊＊＊，＊＊＊（8.6％）（＊＊％）（6.5％）（＊＊％）

35,000＊＊，＊＊＊

24,128＊＊，＊＊＊（10.0％）（＊＊％）（8.4％）（＊＊％）

18,000＊＊，＊＊＊

12,213＊＊，＊＊＊（5.1％）（＊＊％）（4.3％）
（＊＊％）

＊＊％
more
8％orormore＊＊％ or6.1％
more

Operating income（Ratio）

Ordinary income（Ratio）

Net income（Ratio）

ＲＯＥ% change＋62,968＋＊＊＊（21.9％）（＊＊％）＋11,372＋＊＊＊（61.0％）（＊＊％）＋10,872＋＊＊＊（45.1％）（＊＊％）＋5,787＋＊＊＊（47.4％）（＊＊％）―

Strengthen Base for Growth¾Capital investment for strengthening the business base: Approximately ¥30.0 billion¾Strategic business investments, including M&A: No allocation will be set and investments
will be made aggressively as necessary.

Return to shareholder¾Target dividend payout ratio of 35% or more. Stable, proper allocation of profits linked
to performance¾Proactive program of share buybacks with due regard for overall Group demand for funds

10Medium-Term Targets by Segment
Targets by Operating Segment（Unit: ¥ million）

Planned for FY2011
Net Sales

Operating Income(% change from FY2008）(% change from FY2008）

Clothing

350,500（25.5％）＊＊，＊＊＊

29,600（63.9％）＊＊，＊＊＊（＊＊％）（8.4％） （＊＊％）

Services

22,800 （5.0％）＊＊，＊＊＊

600 （113.5％）＊＊，＊＊＊（＊＊％）（2.6％） （＊＊％）

Resorts

6,700 （10.9％）＊＊，＊＊＊（＊＊％）（4.5％） （＊＊％）

Total before
eliminations

380,000（23.7％）＊＊，＊＊＊

30,500（66.4％）＊＊，＊＊＊（＊＊％）（8.0％） （＊＊％）

300 （）＊＊，＊＊＊

Fiscal 2008 (Actual)
Net Sales

Operating Income

279,363＊＊，＊＊＊

18,064＊＊，＊＊＊（6.5％）

21,704＊＊，＊＊＊

281＊＊，＊＊＊（1.3％）

6,043＊＊，＊＊＊△21＊＊，＊＊＊（△0.3％）

307,110＊＊，＊＊＊

18,324＊＊，＊＊＊（6.0％）(ratio)(ratio)Targets by Geographic Segment（Unit: ¥ million）

Planned for FY2011

Net Sales

Operating Income

21,000（35.6％）＊＊，＊＊＊

261,590＊＊，＊＊＊

15,488＊＊，＊＊＊

9,500 （235.0％）＊＊，＊＊＊

45,520＊＊，＊＊＊

2,836＊＊，＊＊＊

30,500（66.4％）＊＊，＊＊＊

307,110＊＊，＊＊＊

18,324＊＊，＊＊＊Net Sales

Operating Income(% change from FY2008）(% change from FY2008）

Domestic businesses

280,000（7.0％）＊＊，＊＊＊（＊＊％）（7.5％） （＊＊％）

Overseas businesses

100,000（119.7％）＊＊，＊＊＊（＊＊％）（9.5％） （＊＊％）

Total before eliminations

380,000（23.7％）＊＊，＊＊＊（＊＊％）

Fiscal 2008 (Actual)（8.0％） （＊＊％）(ratio)（5.9％）（6.2％）（6.0％）(ratio)11Basic Strategies for Apparel Businesses
Strengthen Marketing and Technology

Create Brand Value

１ Original design capabilities

・Restrengthen major core brands
・Strengthen product development capabilities of planning andproduction divisions

２ Powerful sales capabilities

・Promote development of professional sales units

３ Attractive sales environment

・Create shops that better display brands and capture the
Imaginations and support of consumers

４ Advertising that gets attention

・Create advertising that inspires and leaves an impression
・Communicate the corporate brand message

５

System for stepping up productionof top-selling products

・Swift collection and analysis of information on top-selling products
・Further develop and strengthen domestic production systems

６ Quality and low-cost production

・Quality and low-cost production that will win customer support
・Good balance of value and price・Strengthen R&D capabilities

７ Nimble logistics system

・Logistics systems that are faster and more efficient

８ Cutting-edge IT system

・Improve and speed up accuracy of management data and store
information

Development of new businesses
９and domains

・Entry into new domains based on the customers’ perspective
・Development of major new brands aimed at potential markets
・Expansion in fashion goods business

12

Apparel Businesses (In Japan)
Basic Policies

Expand Earnings by Deepening the Brand Portfolio by Distribution
Channel and Strengthen Life-style Goods BusinessPriority Policies
ONWARD KASHIYAMA

Make full use of strengths as all-round apparel maker
Strategy by Channel

Department Stores

Stable growth in existing major core brands
Entry into zones that have good growth potential
・Develop major new brands for potential markets
・Enter new zones where Onward has not developed a presenceNew Distribution Channels (Other than Department Stores)

Accelerate opening of stores in station and fashion buildings
as well as free-standing stores
・Improve store efficiency of existing brands
・Develop new brands (through original development, alliances and M&A)
・Open flagship stores (free-standing stores) for major core brands in high-fashion districts¾ Implement brand communication that will contribute to expansion in overseas
sales (in Asia and elsewhere)
Strategy by Category

Life-style Goods BusinessStrengthen existing brands
Develop new life-style goods business through the global network

13

Apparel Business (In Japan)
Priority Policies
ONWARD TRADING

Build Position as Comprehensive Fashion Trading Company
Moving onto a Growth Path・Stable expansion of mainstay uniform business and sales promotion business・Promote new product development and creation of new sales channels (Internet, etc.)
・Expand business domain and enhance profitability by strengthening own production
and procurement in overseas
CHACOTT

Strengthen Earnings Base as the Leading Company in theDance Fashion Market Segment
・Expand profits through strengthening retail business focused on free-standing stores

BUS STOPExpand Earnings Building on “Via BUS STOP” boutiques
・Operate boutiques specializing in trendy overseas creator’s brands
14

Apparel Business (In Japan)
Medium-Term Targets of the Apparel Segment（Unit: ¥ million）

By Distribution Channel
Targets for Fiscal 2011
Net Sales（% change）

Department stores＊＊，＊＊＊
164,200（5.2％）New distribution
channels＊＊，＊＊＊
42,200（6.0％）

Other channels＊＊，＊＊＊
9,700 （5.4％）

Non-store channels＊＊，＊＊＊
33,500（12.8％）

Total

（＊＊％）

（＊＊％）

（＊＊％）

（＊＊％）

＊＊，＊＊＊
249,600（6.3％）（＊＊％）

Fiscal 2008 (Actual)

Operating Income

Net Sales（% change）

Operating Income（% change）＊＊，＊＊＊
14,300（28.8％）＊＊，＊＊＊
156,100＊＊，＊＊＊
11,100（% change）（＊＊％）（8.7％）＊＊，＊＊＊
2,900（20.8％）（＊＊％）（6.9％）＊＊，＊＊＊
600（0.0％）（＊＊％）（6.2％）＊＊，＊＊＊
2,200（100％）（＊＊％）（6.6％）＊＊，＊＊＊
20,000（31.6％）（＊＊％）（8.0％）

（＊＊％）

（＊＊％）
（7.1％）＊＊，＊＊＊
39,800＊＊，＊＊＊
2,400

（＊＊％）

（＊＊％）
（6.0％）＊＊，＊＊＊
9,200＊＊，＊＊＊
600

（＊＊％）

（＊＊％）
（6.5％）＊＊，＊＊＊
29,700＊＊，＊＊＊
1,100

（＊＊％）

（＊＊％）
（3.7％）＊＊，＊＊＊
234,800＊＊，＊＊＊
15,200※Specialty stores /Chains stores（＊＊％）（6.5％）（＊＊％）(ratio)(ratio)By Category（Unit: ¥ million）

Fiscal 2008 (Actual)

Targets for Fiscal 2011
Net Sales

Operating Income

Net Sales

Operating Income＊＊，＊＊＊
18,600（24.8％）＊＊，＊＊＊
219,800＊＊，＊＊＊
14,900

（＊＊％）

（＊＊％）

（＊＊％）
（6.8％）＊＊，＊＊＊
1,400（）＊＊，＊＊＊
15,000＊＊，＊＊＊
300

（＊＊％）

（＊＊％）

（＊＊％）
（2.0％）＊＊，＊＊＊
20,000（31.6％）＊＊，＊＊＊
234,800＊＊，＊＊＊
15,200

（＊＊％）

（＊＊％）

（＊＊％）
（6.5％）（% change）（% change)

Apparel＊＊，＊＊＊
224,600（2.2％）

Life-style goods＊＊，＊＊＊
25,000（66.7％）

Total＊＊，＊＊＊
249,600（6.3％）

（＊＊％）

（＊＊％）

（＊＊％）

（8.3％）（5.6％）（8.0％）(ratio)（% change）（% change）(ratio)15

Apparel Business (Overseas)
Basic Policies

Strengthen Growth Platform and Expand Earnings Aggressively
Priority Policies
EuropeExpand Business Scale Based on GIBO’ CO. Group and JOSEPH Group・Nurture a corporate group with a presence in world fashion markets through expansion of theexisting businesses of the GIBO’ CO. Group and implementing an M&A strategy that willrealize strong synergies
・ Accelerate the global expansion of the JOSEPH brand through strengthening related planningand development departments

Asia

Expansion of Sales Operations Focused on National Brands
・Strengthen the management base and expand store network profitably
United StatesUpgrade the Earnings Base Focusing on the J. PRESS and JOSEPH brands
・Raise brand competitiveness and aim for sales expansion in balance with earnings（Unit: ¥ million）
Targets for Fiscal 2011

Fiscal 2008 (Actual)

Net Sales（% change from FY2008）

Operating Income（% change from FY2008）

Net Sales

Operating Income

Europe83,600（139.6％）＊＊，＊＊＊

8,300（164.2％）＊＊，＊＊＊

34,898＊＊，＊＊＊

3,142＊＊，＊＊＊

Asia

10,700（69.5％）＊＊，＊＊＊

United States

5,700（32.3％）＊＊，＊＊＊

Total

（＊＊％）

（＊＊％）

（＊＊％）

100,000（119.7％）＊＊，＊＊＊（＊＊％）（9.9％）

（＊＊％）

1,100
（112.8％）＊＊，＊＊＊（10.3％）（9.5％）(ratio)517 includes Resort business＊＊，＊＊＊

4,310＊＊，＊＊＊△823＊＊，＊＊＊（8.2％）

（＊＊％）

9,500
（235.0％）＊＊，＊＊＊（＊＊％）※United States

6,312＊＊，＊＊＊

（＊＊％）

100
（
）
＊＊，＊＊＊（1.8％）（9.0％）

activities in Guam.

（△1.9％）

45,520＊＊，＊＊＊

2,836＊＊，＊＊＊（6.2％）(ratio)16Global Network （Europe）
Paris
LondonＩＣＢ Paris store
ＪＯＳＥＰＨ Fullham Road store
ＪＯＳＥＰＨSaint Germain store

VeronaMilan

Erika s.r.l.

ＩＲＩＳ Milan store

Venice■IRIS S.p.A.

Parma

Viktor & Rolf Milan store■CORPORATE s.r.l.

Store Network

Florence

ＪＯＳＥＰＨＪＯＳＥＰＨ
ＣＡＦＥ

ＩＣＢ

ＩＲＩＳ

Viktor &Rolf

Restaurant
Yen

Total

UnitedKingdom

29

2

1

1

―

―

33

France

11

―

1

―

―

1

13

Italy

―

―

―

1

1

―

2

Total

40

2

2

2

1

1

48
(As of FY2008)■GIBO’ CO. S.p.A.

■FRASSINETI s.r.l.

17

Global Network （ＧＩＢO’ ＣＯ. Group）
Principal Business Operations¾GIBO’ CO. is an Italian apparel company that manufactures and markets
high-end designer brand goods throughout the world.
¾Design know-how by experienced modelists is shared in GIBO’ CO. Group.
¾The GIBO’ CO. has created a production platform that manufactures a lineup of highquality goods, from fabric to knitted items, shoes and bags, thatare essential for a designer.
¾The Group has set up large showrooms in Milan, Paris and New York. Annual sales
have reached approximately ¥20.0 billion.

Aggressive implementation of an M&A strategy
that promises to yield important synergies▼ Ｊｏｈｎ Ｇａｌｌｉａｎｏ

ＧＩＢＯ’ＣＯ．Group

Apparel(Manufacturing
and sales)

ＧＩＢＯ’ＣＯ．

Knitwear

Shoes▲ Ｖｉｋｔｏｒ＆Ｒｏｌｆ

Bags(Manufacturing(Manufacturing)(Manufacturing)and sales)

ＣＯＲＰＯＲＡＴＥ

ＥＲＩＫＡ

ＩＲＩＳ

ＦＲＡＳＳＩＮＥＴＩ

Showrooms in world fashion centers
Italy: Milan showroom （2,740 ㎡）
France: Paris showroom （660 ㎡ ）Ｍａｒｃ Ｊａｃｏｂｓ▲

U.S.A.: New York showroom (760 ㎡)

18

Global Network (ＧＩＢＯ’ ＣＯ. Group）
Group Brands※Red indicates on an OEM basis

ＧＩＢＯ’ ＣＯ．
(Apparelmanufacturing
and sales)

Brand

ＣＯＲＰＯＲＡＴＥ

ＥＲＩＫＡ

ＩＲＩＳ

ＦＲＡＳＳＩＮＥＴＩ(Apparelmanufacturing andsales)(Knitwear
manufacturing)(Shoe
manufacturing andsales)(Bag manufacturing)

MICHAEL KORS●●Paul Smith

●

●

●

Viktor & Rolf

●

●

●

Hussein Chalayan●●●

Antonia Berardi
JOSEPH●

Marc Jacobs

●

●

●

John Galliano

●

●

●

●

●

Chloe
Antonio Marras

●

●

●

Christian Dior●

Ferragamo●Louis Vuitton

●

Prada

●

Hermes●●

As of FY2008

19

Global Network （ＪＯＳＥＰＨ Group）
Principal Businesses¾With the concept of essential neat (which must have a sharp attractiveness),
JOSEPH has developed a lineup of high-quality comfortable casual
wear for sophisticated urban men and women. With its base in London,JOSEPH has opened shops in the world’s major cities and become
a global fashion brand.
¾JOSEPH will work to strengthen product design capabilities by combining Japaneseskills in merchandising, including eight-season’s merchandising, with JOSEPH’s
creativity.

▼ ＪＯＳＥＰＨ‘s Paris store
in Saint.Germain¾JOSEPH will expand from its principal bases of the United Kingdom and France into
Eastern Europe, Russia and Asia. Annual sales have reached approximately ¥15.0 billion.
•Expand full-fledged life-style goods business•Promote global strategy through business alliances

Shop Network
Freestanding
store

Shop inshop

Café

Outlet
malls

Total

UnitedKingdom

13

12

2

4

31

France

6

5

―

―

11

U.S.A.

2

―

―

―

2

Asia
(outside
Japan)

1

8

―

―

9

Japan

2

60

―

―

62

Total

24

85

2

4

115

ＪＯＳＥＰＨ Group

United Kingdom

ＪＯＳＥＰＨ ＬＴＤ．

FranceＪＯＳＥＰＨＴＯＲＩＣＯＴ （France）

U.S.A.

ＪＯＳＥＰＨ
Ｕ.Ｓ.Ａ.

As of FY2008

20

Global Network （Asia）
Thailand
Urumqi

Beijingrosebullet
Bangkok ISETAN

Changchun

ICB Beijing SOGO
Shenyang

ChengduSouth Korea

NIJYUSANKUCHENGDU ISETAN

J.PRESS
DEPARTMENT STORE LOTTE

Tianjin
DalianShijiazhuang

Shanghai

Qingdao
Xian

SingaporeKUMIKYOKUSHANGHAI MEI LONG ZHENISETAN

Zhengzhou
NanjingChangzhou

Wuhan

ICB

NIJYU
SANKU

China

33

Hong
Kong

NIJYU
SANKU
HOMME

rose
bulletJIYU
KU

J.PRESS

pridegl
ide

KUMI
KYOKU

Size
Site

47

12

23

―

2

―

13

1

―

―

5

―

―

―

Taiwan

11

11

3

5

15

―

Korea

6

―

―

3

―

Thailand

―

―

―

1

Singapore

―

―

―

Total

51

58

15

KUMI
KYOKU
Children’s

JOSEPH

Total

9

5

3

147

―

―

―

2

8

3

―

―

―

1

49

2

―

―

4

―

5

20

―

―

―

―

―

―

―

1

1

―

―

―

―

―

―

―

1

38

15

4

3

13

13

5

11

226

Wuxi
Zhangjiagang
SuzhouChongqingHangzhou
GuiyangChangsha

NingboKunming

Wenzhou
XiamenHongKong

ShenzhenTaiwanJOSEPHTAIPEI CHUNG SHAN

※As of FY2008

21

Global Network （U.S.A.）

Massachusetts

Washington, Ｄ.Ｃ

J.PRESS Cambridge store
J.PRESS Washington store

Connecticut

Guam

J.PRESS New Haven store

ONWARD Beach Resort

ONWARD Mangirao
Golf ClubNew Jersey
New York
JOSEPH Short Hills store

ONWARD Talofofo
Golf Club

J.PRESS New York store

22

Other Businesses
Principal Policies
ACROSS TRANSPORT CO., LTD.

Establish Earnings Base as No. 1 Fashion Logistics Company
・Aiming to be a comprehensive logistics services company specializing in distribution of fashion items
・Strengthening capabilities to be a global logistics provider using its base in Shanghai
ONWARD CREATIVE CENTER CO., LTD.

Establish Presence as Designers and Implementers of Highly Fashionable
Store Environments
・Expanding business activities to become a “total space producer” based on the know-how accumulated
designing Onward Group shops
ONWARD RESORT & GOLF CO., LTD.

Establish Earnings Base as All-Round Resort Business in Guam・Aiming to be the No. 1 resort in Guam by realizing synergies among ONWARD BEACH RESORTGUAM, INC. and ONWARD GOLF RESORT GUAM, INC.

23

Policies for Reforming the Earnings Structureand Strengthening the Organization
Strengthening the Branding Activities
・Continue promotion of synchronized advertising for boththe corporate and product brands
・Strengthen R&D and product development capabilities based on
consumer-centric marketing

R&D
ONWARD Research Center
ONWARD Research Center is a major
foundation for the position of the ONWARD Groupin the fashion business. It comprises the Technology
Development Center, which is engaged in developmentof new production technologies and comprehensive R&D
for product development, the ONWARD Advanced
Technology Research Center, and the Human
Resource Development Center0000000

Promoting Low-Cost Operations through Increasing Efficiency
・Promote low-cost production through structural reforms in production operations
・Use fixed expense budget more efficiently through improvements in work frameworks andbusiness processes

Enhancing CSR Activities
・Improve initiatives for environmental preservation¾Expand scope of activities beyond ISO 14001 certification(obtained in 2004) and deepen content¾Take the initiative in linking environmental activities withGroup business operations
・Further strengthen compliance systems

Strengthening Management Systems

Product development
One of the best design and production systems
in the industry
Planning Team

Designers

２２０

Pattern makers

２３０

Merchandiser / Visual Merchandiser

２２０・Improve corporate governance by putting internal control systems in order and strengthening
risk management systems

24

Business Policy for Fiscal 2009

Business Plan for Fiscal 2009

Consolidated
Operating Income（Unit: ¥ million）
Planned for
Fiscal 2009

Actual in
Fiscal 2008

% change

Net sales＊＊，＊＊＊
291,000＊＊，＊＊＊
287,032＋＊＊＊＋3,968 （＋＊＊％）（1.4％）

Gross profit＊＊，＊＊＊
134,000＊＊，＊＊＊
130,190（＊＊％）（46.0％）（＊＊％）（45.4％）(Ratio)Operatingexpenses(Ratio)＊＊，＊＊＊
113,400＊＊，＊＊＊
111,562（＊＊％）（39.0％）（＊＊％）（38.9％）＊＊，＊＊＊
20,600＊＊，＊＊＊
18,628（＊＊％）（7.1％）（＊＊％）（6.5％）＊＊，＊＊＊
24,200＊＊，＊＊＊
24,128（＊＊％）（8.3％）（＊＊％）（8.4％）＊＊，＊＊＊
12,400＊＊，＊＊＊
12,213（＊＊％）（4.3％）（＊＊％）（4.3％）Net Income

Net Sales
330,000

30,000318,690

320,000

25,000310,000
300,000

20,000＋＊＊＊ （＋＊＊％）＋3,810（2.9％）＋＊＊＊＋1,838 （＋＊＊％）（1.6％）

24,20524,70725,431

291,000

287,032

290,000

283,110

15,00020,600280,000

18,628Operating income(Ratio)＋＊＊＊ （＋＊＊％）＋1,972（10.6％）

270,000

10,000271,273

260,000
Ordinary income(Ratio)Net income(Ratio)＋＊＊＊＋72 （＋＊＊％）（0.3％）

5,000
10,256＋＊＊＊＋187 （＋＊＊％）（1.5％）

11,091

11,438

12,213

12,400250,000
240,000

0
2005

2006

2007

2008

2009

25

Fiscal 2008 Targets by Segment
Targets by Business Segment（Unit: ¥ million）

Planned for fiscal 2009
Net Sales

Operating Income（% change）（% change）

Apparel

284,309（1.8％）＊＊，＊＊＊

20,643（14.3％）＊＊，＊＊＊

Services

20,846 （△4.0％）＊＊，＊＊＊

Resorts

5,934 （△1.8％）＊＊，＊＊＊

Total before
eliminations

311,089（1.3％）＊＊，＊＊＊

（＊＊％）

（＊＊％）

（＊＊％）

（＊＊％）

（7.3％）

279,363＊＊，＊＊＊

18,064＊＊，＊＊＊（6.5％）

21,704＊＊，＊＊＊

281＊＊，＊＊＊（1.3％）

6,043＊＊，＊＊＊△21＊＊，＊＊＊（△0.3％）（＊＊％）

21,349（16.5％）＊＊，＊＊＊（6.9％）

Operating Income

（＊＊％）

180 （
）
＊＊，＊＊＊（3.0％）Net Sales（＊＊％）

526 （87.2％）＊＊，＊＊＊（2.5％）

Fiscal 2008 (Actual)

307,110＊＊，＊＊＊

18,324＊＊，＊＊＊（6.0％）（＊＊％）(ratio)(ratio)Targets by Geographic Area

（Unit: ¥ million）

Planned for fiscal 2009

Fiscal 2008 (Actual)

Net Sales

Operating Income

Net Sales

Operating Income

Domestic business

263,025（0.5％）＊＊，＊＊＊

17,587（13.6％）＊＊，＊＊＊

261,590＊＊，＊＊＊

15,488＊＊，＊＊＊

Overseas business

48,064 （5.6％）＊＊，＊＊＊

45,520＊＊，＊＊＊

2,836＊＊，＊＊＊

Total before
eliminations

311,089（1.3％）＊＊，＊＊＊

307,110＊＊，＊＊＊

18,324＊＊，＊＊＊（% change）

（＊＊％）

（＊＊％）

（＊＊％）

（% change）（6.7％）（＊＊％）

3,762 （32.7％）＊＊，＊＊＊（7.8％）（＊＊％）

21,349（16.5％）＊＊，＊＊＊（6.9％）(ratio)（＊＊％）（5.9％）（6.2％）（6.0％）(ratio)26

Apparel Business （In Japan）
ONWARD KASHIYAMA Co., Ltd.

Basic Policy

Put Brand Portfolio in Order and Focus on Major Core Brands
Priority Policies
Reinfortify Major Core Brands
・Position NIJYUSANKU as a major core brand and work to further raise the brand value of
KUMIKYOKU,ICB and JIYUKUStrengthen Brands Targeted for Expansion
・Position CK Men’s, DKNY Women’s, JOSEPH, J.PRESS, anyFAM and anySiS as brands for
expansion and promote sales expansion through strengthening design and marketingPromote Reforms in Production Technology
・Realize high-quality and low-cost production by strengthening teamwork with ONWARD R&D Center,
restructuring domestic subcontruct factories and further developing the network of overseas
subcontruct factories

27

Apparel Business （In Japan）
ONWARD KASHIYAMA Co., Ltd.’s Policies for Refortifying Major Core Brands
Specific Policies

Aim to Increase the Value of the NIJUSANKU Brand
and Implement a Brand Revitalization Program to Renew
Product Design, Advertising, and Shop Environments～Began a major ad campaign, “Walk NIJYUSANKU,” for the first time in five years in March 2008

Product Design

Advertising

Shop Environments¾Clarify the brand concept as“Tokyo Real Clothes”¾Chose Miho Kanno as the image
character¾Implement a renewal of productdesign targeted at women around30 years of age¾Commercials now being aired onnational TV¾Introducing new shop environments
and renovating 40 major stores, twice
the number of the previous year28

Apparel Business （Overseas）
Basic Policy

Clarify Regional Features and Strengths of Each Company
and Expand the Business Platform
Priority Policies
EuropeEstablish a Stable Earnings Base for the GIBO’ CO. Group・Aim to stabilize earnings by direct investments into partner designer brands
・Acquire leading global brands through M&A activities

Create a Base for Making JOSEPH a Global Strategic Brand
・Strengthen production and planning functions with London as the main base・Improve core stores and expand their sales area
Asia

Expand Scale of Business Operations through Onward’s Original Brands
United StatesEstablish an Earnings Base Specialized for the J.PRESS and JOSEPH brands
・For J.PRESS, expand sales of individual stores, with J.PRESS New York as the flagship store
・Expand sales of JOSEPH

29

Principal Financial Indicators

Consolidated Results in Fiscal 2008

（Unit: ¥ million）

Interim period
Fiscal
2008

Fiscal2007

Net sales

140,836

Gross profit

Second half

Change%changeFiscal
2008

Fiscal2007

Change153,097△12,261（△8.0%）

146,196

165,593△19,397

63,252

68,910△5,658（△8.2%）

66,93873,985△7,047（44.9%）(45.0%)（△0.1%）(45.8%)(44.7%)(1.1%)

Operatingexpenses

55,84557,967△2,122

55,71759,497△3,780(Ratio)（39.7%）(37.9%)（1.8%）(38.1%)(35.9%)(2.2%)

Operatingincome7,407

10,943

11,221

14,488(Ratio)△3,536（5.3%）(7.1%)

Ordinary
income10,948

11,906(Ratio)（7.8%）(7.8%)（0.0%）Net income

6,357

△ 534

6，891

(Ratio)（△3.7%）（△1.8%）△958（△32.3%）(7.7%)(8.7%)

13,18015,501（△8.0%）△3,267（4.5%）(△0.3％）（4.8%）%
changeFiscal
2008

Fiscal2007

Change%change（△11.7%)

287,032

318,690△31,658（△9.9%）

130,190

142,895△12,705(45.4%)(44.8%)(0.6%)

111,562

117,464△5,902(38.9%)(36.9%)(2.0%)

18,62825,431（△9.5%）（△6.4%）（△22.5%)(△1.0%)△2,321(9.0%)(9.4%)(△0.4%)

5,856

11,972△6,116―(Ratio)Full fiscal year

(6.5%)(8.0%)

24,12827,407（△15.0%)△6,803(7.2%)(△3.2%)（△5.0%）（△26.8%)(△1.5%)△3,279(8.4%)(8.6%)(△0.2%)

12,213

11,438775(4.3%)(3.6%)(0.7%)（△12.0%)（6.8%）（△51.1%)(4.0%)（△8.9%）

30

Plans for Consolidated Results in Fiscal 2009（¥ million ）Interim period

Second half

Full fiscal year

Fiscal
2009(Plan)

Fiscal2008(Actual)Change%changeFiscal
2009(Plan)

Fiscal2008(Actual)Change%changeFiscal
2009(Plan)

Fiscal2008(Actual)Change%changeNet sales

141,000

140,836164（0.1%）

150,000

146,196

3,804（2.6%）

291,000

287,032

3,968（1.4%）

Gross profit

64,50063,252

1,248（2.0%）

69,50066,9382,562（3.8%）

134,000

130,190

3,810（2.9%）(Ratio)（45.7%）（44.9%）（0.8%）（46.3%）（45.8%）（0.5%）（46.0%）（45.4%）（0.6%）

Operatingexpenses

56,70055,845855

56,70055,717983

113,400

111,562

1,838(Ratio)（40.2%）（39.7%）（0.5%）（37.8%）（38.1%）（△0.3%）（39.0%）（38.9%）（0.1%）

Operatingincome

7,800

7,407

12,800

11,221

20,60018,628393（5.5%）（5.3%）

Ordinary
income

9,500

10,948(Ratio)（6.7%）（7.8%）（△1.1%）Net income

4,400

6,357

△1,957(Ratio)（1.5%）（5.3%）（0.2%）△1,448（8.5%）（7.7%）

14,70013,180（△13.2%）

1,579（3.1%）（4.5%）（△1.4%）（14.1%）（0.8%）

1,520（9.8%）（9.0%）（0.8%）

8,000

5,856

2,144

（7.1%）（6.5%）

24,20024,128（11.5%）

1,972（5.3%）（4.0%）（1.3%）（1.6%）（10.6%）（0.6%）

72（8.3%）（8.4%）（△0.1%）

12,40012,213187（4.3%）（4.3%）（0.0%）（36.6%）（△30.8%）(Ratio)（1.8%）（0.3%）（1.5%）

31

Results of Principal Consolidated Subsidiaries（ ¥ million ）＜ Net sales＞

Interim period of fiscal 2008
AmountChangeSecond half of fiscal 2008
AmountChangeFull fiscal 2008
AmountPlans for fiscal 2009

ChangeAmountChangeONWARD KASHIYAMA CO., LTD.

94,469△2.0 %

103,071△0.7％

197,540△1.3％

200,000

1.2％

ONWARD TRADING CO., LTD.

11,497△4.4％

10,025△6.7％

21,522△5.5％

21,642

0.6％

CHACOTT CO., LTD.

5,712

0.2%

5,408

△2.9％

11,120△1.3％

11,450

3.0％

ACROSS TRANSPORT CO., LTD.

5,966

△10.2%

5,925△14.0％

11,891△12.1％

11,877△0.1％

ONWARD CREATIVE CENTER CO., LTD.

3,780

2.1%

2,471

△52.1％

6,251△29.4％

5,200△16.8％

ONWARD RESORT Group

3,236

42.9%

2,807

5.2％

6,043

22.5％

5,934

△1.8％

JOSEPH Group

7,385

9.2%

7,043

△17.0％

14,428△5.3％

13,991△3.0％

GIBO’ CO. Group

8,588

37.0%

9,890

13.4％

18,47823.3％

20,1689.1％＜Ordinary income＞

Interim period of fiscal 2008
AmountChangeSecond half of fiscal 2008
AmountChangeFull fiscal 2008
AmountPlans for fiscal 2009

ChangeAmountChangeONWARD KSAHIYAMA CO., LTD.

4,748

△29.6%

9,028

△8.4%

13,776△17.0％

15,200

10.3％

ONWARD TRADING CO., LTD.

862

△5.3%

309

2.3％

1,171

△3.4％

1,291

10.2％

CHACOTT CO., LTD.

424

△11.5%

352△36.5％

776△24.9％

851

9.7％

ACROSS TRANSPORT CO., LTD.

68

△71.7%△54

14△96.2％

178

ONWARD CREATIVE CENTER CO., LTD.

86△30.1%△34

52△78.9％

55

ONWARD RESORT Group

2

△23

△21

JOSEPH Group

△148

368

△40.4％

220△68.8％

222

0.9％

GIBO’ CO. Group

1,295

1,612

△0.2％

2,907

19.1％

3,017

3.8％

57.2%

5.8％

180

32

Trends in Capital Investment and Depreciation＜Capital investment＞＜Depreciation＞（¥ million)

12,0008,000

10,000
8,000

6,000

Non-Consolideted
Consolideted

6,000
4,000
2,000

（¥ million)

Non-Consolideted
Consolideted

4,000
2,000

0

0

2003

2004

2005

2006

2007

2003

＜Capital investment＞

2004

2005

2006

2007

＜Depreciation＞（¥ million ）Fiscal2004(Actual)

Cons
olida
ted
Noncons
olida
ted

7,145

5,716

Fiscal2005(Actual)

9,076

8,280

Fiscal2006(Actual)

8,053

7,238

Fiscal2007(Actual)10,506

8,046

Fiscal2008(Actual)

9,566

5,255

（¥ million ）Fiscal
2009(Plan)

8,000

5,000

Fiscal2004(Actual)Fiscal2005(Actual)Fiscal2006(Actual)Fiscal2007(Actual)Fiscal2008(Actual)Fiscal
2009(Plan)

Cons
olidat
ed

7,530

7,041

7,053

6,697

7,340

7,500

Noncons
olidat
ed

5,057

5,353

5,542

4,890

5,109

5,100

33

Onward Kashiyama Sales Floor Area and Monthly Sales＜Sales Floor Area ＞

Department
storesNew
Distribution
channels

Fiscal 2004
(Actual)Fiscal 2005
(Actual)Fiscal 2006
(Actual)Fiscal 2007
(Actual)Fiscal 2008
(Actual)Sales (¥ million)

126,016

4.3%

133,973

6.3%

139,376

4.0%

148,9116.8%

145,263△2.4%

147,500

1.5%

Sales floor area（㎡）

157,970

4.9%

175,000

10.8%

174,310△0.4%

182,480

4.7%

175,200△4.0%

178,200

1.7%

Sales (¥ million)

25,71339.6%

29,31814.0%

30,0642.5%

32,1386.9%

33,263

3.5%

34,400

3.4%

Sales floor area（㎡）

73,45029.3%

87,47019.1%

92,190

5.4%

95,8303.9%

93,060△2.9%

94,000

1.0%

Planned for fiscal
2009

(％ ）

＜Trends in Monthly Sales ＞
Fiscal 2008

Interimperiod

Sept.

△2

△1

±0

△2

5

5

△5

△8

2

△2

△8

△3

4

±0

△2

△14

△9

△9

△13

△8

△5

19

2

△12

△12

△6

1

±0

△1

△16

13

7

3

2

△1

△5

△3

11

△7

±0

△2

△6

Mar

Apr

May

June

July

Aug

Men’s

△4

△4

△2

8

△5

Women’s

△5

△6

△3

13

Children’s

△11

△7

△9

Kimonos

△8

△9

Other

7

Total

△4

Second
half

Total

11

3

1

1

△5

△2

△2

△10

△1

△2

△7

△8

△17

△11

△9

△20

△13

△9

△2

7

4

△3

△3

2

2

△3

3

1

△1

△2

△1

△1

Oct.

Nov.

Dec.

Jan.

Feb.

34

Onward Kashiyama Sales by Type・Sales by Distribution Channel（Excluding ONWARD TRADING）

By Apparel TypeInterim period of fiscal 2008
Amount% Change

Second half of fiscal 2008
Amount% Change

Full fiscal year 2008
Amount% Change

Men’s

22,771△1.5%

27,8223.0%

50,593

0.9%

Women’s

63,294△2.0%

66,690△1.6%

129,984△1.8%

Children’s

3,607

△9.1%

4,089

△7.3%

7,696

△8.1%

Kimonos

1,877

△5.7%

1,353

△13.4%

3,230

△9.1%

Other

2,920

5.2%

3,117

2.2%

6,037

3.6%

Total

94,469△2.0%

103,071△0.7%

197,540△1.3%

By Distribution Channel
Interim of period fiscal 2008
Amount% Change

Second half of fiscal 2008
Amount% Change

Full fiscal year 2008
Amount% Change

Department stores

68,422△3.1%

76,841△1.9%

145,263△2.4%

New distribution channels

15,8733.0%

17,3904.0%

33,263

3.5%

Specialty stores

2,963

△5.2%

2,949

△6.8%

5,912

△6.0%

Chain stores

1,265

△4.2%

1,332

△17.1%

2,597△11.2%

Other

5,946

△0.6%

4,559

14.5%

10,505

5.5%

Total

94,469△2.0%

103,071△0.7%

197,540△1.3%

35