OMO-type ONWARD CROSSET STORE at Lalaport TOKYO-BAY

FY02/22 Q1 Results Presentation Supplement
July 8, 2021
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Greetings, my name is Osamu Sato, and I am the director in charge of finance, accounting, and investor
relations at Onward Holdings.
I would like to thank you for taking the time to watch this video during which we will be discussing theperformance of Onward Holdings in the three-month period ended May 31, 2021.
The COVID-19 pandemic continued throughout the three-month period under review, and state of
emergency declarations and priority measures, such as those for preventing the spread of the disease,were implemented on an intermittent basis across the entire period. As a result, large-scale commercial
facilities were once again asked to close or shorten business hours, prolonging the opaque outlook.
In this environment, the Onward Group took steps to limit the losses that would have arisen from closuresassociated with physical stores by curtailing procurement and cutting fixed costs. At the same time, we
capitalized on the global business reforms carried out over the past two years as we sought to weather thedifficult conditions in Japan and overseas.

Contents

P.2-3

・・・

FY02/22 Q1 Consolidated Results

P.4-5

・・・

Results by Group Company

P.6

・・・

Early Adoption of New Revenue Recognition Standard

P.7-8

・・・

Financial Situation

P.9-12・・・

DATA BOOK© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

1

FY02/22 Q1 Consolidated Results□ Sales were steady until the first half of April, but fell sharply from the second half

onward owing to the reissuance of the state of emergency declaration. This,
combined with the impact of the withdrawal from unprofitable businesses and theclosure of underperforming stores in Japan and overseas in FY02/21 resulted inlimited sales growth.

□ As for profits, the global business reforms kicked off in the fall of 2019 yielded

results, with a 3.5pp improvement in gross profit margin and a 3.3pp decrease in
SG&A expenses. As a result, the Company returned to profitability at all profit
levels, with operating profit of approximately 1.1 billion yen, recurring profit ofapproximately 2 billion yen, and net income of approximately 2.1 billion yen.

□ By Group company, Onward Kashiyama (nonconsolidated), Domestic Subtotal(excl. Onward Kashiyama), and Overseas Total all achieved operating profit thanks
to progress in business reform, digitization, and other growth strategies. As of theend of Q1 FY02/22, the Company completed business reforms at its Italian
operations, which had previously suffered large operating losses among its
overseas businesses.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

2

FY02/22 Q1 Consolidated Results(Million yen)

Adjusted Q1 FY02/21
figures to reflect change inrevenue recognition
standard*2

1

2

3

4

Q1
FY02/22

FY02/21Q1 (unadjusted*3)

ChangeYoY

FY02/21

Sales

46,022

43,719+2,303105.3%

42,653Gross Profit

23,78021,082+2,698112.8%

19,516(% of Sales)

51.7%

48.2%

+3.5%

SG&A Expenses

22,632

22,933

-301

98.7%

21,367(% of Sales)

49.2%

52.5%

-3.3%

Operating Profit

1,147-1,851+2,998--1,851

45.8%

50.1%

(% of Sales)

2.5%

-

5

Recurring Profit

1,976-1,746+3,722--1,746

6

Net Income

2,060-2,417+4,477--2,417

EBITDA*1

2,447

-304

+2,751

-

-304

7

-

1 EBITDA = operating profit + depreciation and amortization
2 Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22
Adjustments: +1,066 million yen for sales, +1,566 million yen for gross profit and SG&A expenses, respectively
3 Unadjusted figures for Q1 FY02/21 correspond to the Q1 FY02/21 figures as shown in the Summary of Financial Results for Q1 FY02/22© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

3

I would now like to explain our consolidated financial performance for the three-month period ended May
31, 2021.
On a consolidated basis, net sales totaled ¥46,022 million, operating profit came to ¥1,147 million,
recurring profit was ¥1,976 million, and profit attributable to owners of parent amounted to ¥2,060
million. EBITDA was ¥2,447 million.
In this manner, sales showed slight growth from the same period of the previous fiscal year while
profitability was achieved with regard to all profit figures due to the benefits of the global business reforms
carried out over the past two years and others.

Early Adoption of New Revenue Recognition Standard

The new revenue recognition standard will be mandatorily applied for all companies
from fiscal years beginning on or after April 1, 2021. The Group will adopt the newrevenue recognition standard early starting in FY02/22.

Key impact of the new revenue recognition standard on the GroupFor transactions with department stores, retail sales will be recorded as sales and rent
equivalents will be recorded as SG&A expenses, whereas previously the net amount after
deducting rent equivalents was recorded as sales.
Loyalty point usage fees, which were previously included in SG&A expenses, will be
excluded from sales.
The above changes will not affect operating profit.

The adoption of the new revenue recognition standard will unify the sales
recognition standards that previously differed by sales channel.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

6

Before discussing profit figures, I would like to touch on the new standards for recognizing revenues that theCompany has applied from fiscal 2021. Information with this regard is provided on slide 6.
Companies using J-GAAP standards are required to apply revised standards for recognizing revenues for all fiscal
years starting on and after April 1, 2021. This means that the application of these standards will be compulsory for
the Company from fiscal 2022. However, we chose to apply the new standards in fiscal 2021, ahead of schedule.
This change has two major repercussions for the Company.
The first is that sales from transactions with department stores, which were previous recorded at wholesale value by
subtracting rent fees from the sales amount, will be recorded in their entirety under net sales, after which rent fees
will be subtracted via SG&A expenses.
The second pertains to point usage fees. These fees were normally accounted for through SG&A expenses, but they
will be deducted from net sales under the new standards.
In accordance with the applicable accounting rules, profit figures from the previous fiscal year have been statedbased on the prior standards in the consolidated financial results summary. In today’s presentation, however, we
will generally be using figures for the previous fiscal year that have been restated based on the new standards.
Accordingly, comparisons will be made on an “apple-to-apple” basis.
Please turn to slide 3.

FY02/22 Q1 Consolidated Results(Million yen)

Adjusted Q1 FY02/21
figures to reflect change inrevenue recognition
standard*2

1

2

3

4

Q1
FY02/22

FY02/21Q1 (unadjusted*3)

ChangeYoY

FY02/21

Sales

46,022

43,719+2,303105.3%

42,653Gross Profit

23,78021,082+2,698112.8%

19,516(% of Sales)

51.7%

48.2%

+3.5%

SG&A Expenses

22,632

22,933

-301

98.7%

21,367(% of Sales)

49.2%

52.5%

-3.3%

Operating Profit

1,147-1,851+2,998--1,851

45.8%

50.1%

(% of Sales)

2.5%

-

5

Recurring Profit

1,976-1,746+3,722--1,746

6

Net Income

2,060-2,417+4,477--2,417

EBITDA*1

2,447

-304

+2,751

-

-304

7

-

1 EBITDA = operating profit + depreciation and amortization
2 Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22
Adjustments: +1,066 million yen for sales, +1,566 million yen for gross profit and SG&A expenses, respectively
3 Unadjusted figures for Q1 FY02/21 correspond to the Q1 FY02/21 figures as shown in the Summary of Financial Results for Q1 FY02/22© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

3

Net sales in the three-month period ended May 31, 2021, totaled ¥46,022 million, a year-on-year increase of only 5.3%. Sales
grew smoothly up until the first half of April, but the number of new COVID-19 cases once again started to rise in the second halfof this month, prompting the government of Japan to issue its third state of emergency declaration, which resulted in a slump insales. Another factor stifling sales growth was the impacts of our withdrawing from unprofitable businesses and closing
underperforming stores in Japan during the previous fiscal year.
As for profit, we felt the benefits of the global business reforms we have been carrying out over the past two years.
Gross profit was ¥23,780 million, an increase of ¥2,700 million, or 12.8%, year on year. The rate of items sold at full price instores increased, and we benefited from effective inventory control and our withdrawal from underperforming operations in
Italy.
SG&A expenses totaled ¥22,632 million, a decrease of ¥300 million, or 1.3%, year on year. This outcome was the result of fixed
cost reductions associated with global business reforms. Specifically, we successfully cut personnel and depreciation costs by
10% year on year, respectively, leading to a more stable operating foundation.
As a result, operating profit of ¥1,147 million was recorded, compared with operating loss of ¥1,851 million reported in thesame period of the previous fiscal year.
The balance of non-operating income and expenses made for net non-operating income of approximately ¥800 million being
recorded due to COVID-19 subsidy income as well as foreign exchange gains associated with accounting procedures forwithdrawing from overseas operations.
Accordingly, recurring profit of ¥1,976 million was recorded, compared with recurring loss of ¥1,746 million reported in thesame period of the previous fiscal year.
The balance of extraordinary income and losses led to the recording of net extraordinary income of ¥2,900 million.
Extraordinary losses included ¥2,000 million in loss on sale of brand businesses, ¥2,000 million in loss on the liquidation of amanagement company, and ¥800 million in loss due to store closures resulted from the COVID-19 pandemic. However, theselosses were outweighed by extraordinary income in the forms of gain on sales of non-current assets of ¥4,800 million and a gainon sales of production subsidiaries of ¥2,900 million associated with the final liquidation of operations in Italy as part of global
business reforms. For details of extraordinary income and losses, please refer to page 11 of these materials.
Losses associated with the liquidation of operations in Italy will not be incurred after the three-month period ended May 31,
2021. After accounting for ¥2,800 million in income taxes, profit attributable to owners of parent came to ¥2,060 million.
EBITDA was ¥2,447 million, an improvement from a loss of approximately ¥304 million recorded for this item in the previous
equivalent period.
Moving on to slide 4, I would next like to discuss performance by operating company.

FY02/22 Q1 Results by Group Company(Million yen)

Q1
Sales
FY02/22

Operating Profit

FY02/21

ChangeFY02/22

FY02/21

Change1

Onward Kashiyama(Nonconsolidated)

22,435

17,560+4,875770-1,573

2

Onward Trading

4,568

5,466

-898

875

1,215

-340

Island

1,344

964

+380

-70

-305

+235

Chacott

2,148

1,062

+1,086

59

-404

+463

Creative Yoko

1,090

833

+257

48

-29

+77

Yamato

4,714

4,476

+238

292

346

-54

7

Other

3,338

3,235

+103

-144

-25

-119

8

Domestic Subtotal(Excl. Onward Kashiyama)

17,202

16,036+1,166

1,060

798

+262

Europe7,301

10,468-3,167

286

-389

+675
+34

3
4
5
6

9
10
11
12
13
14

D
o
m
e
s
t
i
c

O
v
e
r
s
e
a
s

North America
Asia

125

131

-6

-132

-166

1,146

1,085

+61

50

121

-71

71

1,029

-958

-191

116

-307

8,643

12,713-4,070

13

-318

+331

46,022

43,719+2,303

1,147-1,851+2,998

Guam Resort
Overseas Total

Consolidated Total+2,343

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions
Note: Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

4

No. 1 on this slide is Onward Kashiyama, which posted net sales of ¥22,435 million, an increase of approximately ¥4,900 million,or 28%, year on year. This company moved ahead with the closure of unprofitable stores and other business reforms, thereby
achieving operating profit of ¥770 million, compared with operating loss of ¥1,573 million in the previous equivalent period.
No. 2 is Onward Trading, a company that is engaged in business-to-business operations, which have proven relatively resilient to
the impacts of the COVID-19 pandemic. This company once again posted strong performance with net sales of ¥4,600 million
and operating profit of ¥900 million, though performance was not quite as impressive as that seen in the midst of last year’s
special demand surge.
No. 3 is Island. Like Onward Kashiyama, Island suffered amid last year’s apparel slump. In the three-month period, however, it
was able to achieve net sales of ¥1,300 million, a year-on-year increase of ¥400 million. In addition, this company was able toreduce operating loss by ¥200 million through effective inventory control and other measures.
No. 4 is Chacott. Performance for this company’s ballet, cosmetic, and wellness products was strong due to their ability toaccommodate the new lifestyles emerging in response to the COVID-19 pandemic. As a result, net sales were up ¥1,100 million
year on year, to ¥2,100 million, while operating profit of ¥60 million was recorded, compared with operating loss of ¥404 million
in the previous equivalent period.
No. 5 is Creative Yoko, which was able to grow net sales by ¥300 million year on year, to ¥1,100 million, by capturing thedemand related to staying at home amid the COVID-19 pandemic in its pet supply business. In addition, this company recorded
operating profit of ¥50 million, compared with operating loss of ¥29 million in the previous equivalent period.
As for No. 6, Yamato, which is engaged in the gifts business, department store- and wedding ceremony-related products
performed well, even amid the COVID-19 pandemic, leading this company to record net sales of ¥4,700 million, up ¥200 million
year on year, and operating profit of ¥300 million.
As a result, as shown by No. 8, net sales totaled ¥17,200 million and operating income amounted to ¥1,100 million for ourdomestic operations in their entirety.
In this manner, domestic operations showed strong performance even in the midst of the COVID-19 pandemic, and we lookforward to robust growth in these operations after the pandemic has subsided.
As for overseas Group companies, global business reforms resulted in us finally completing the withdrawal from the chronicallyunprofitable operations in Italy during the three-month period ended May 31, 2021.
No. 9 on this slide is our European business. Net sales decreased ¥3,200 million in this business as a result of the contraction ofoperations in Italy, but operating profit of approximately ¥300 million was recorded nonetheless.
Meanwhile, the scale of losses decreased in the North American business even amid the COVID-19 pandemic, represented by
No. 10.
Performance remained stable for our Asian business, No. 11.
No. 12 is the resort business. This business was profitable before the COVID-19 pandemic, but it is now facing a consistently
challenging operating environment. We are thus looking forward to the resumption of tourism.
No. 13 on this slide represents the total performance of our overseas operations. The global business reforms proved beneficial,and, although net sales decreased to ¥8,600 million due to decreased sales from Italian operations, we were able to secure
operating profit in overseas operations.

FY02/22 Q1 Results by Group Company□Onward Kashiyama+4,875▲4,070• Execution of business reforms
such as closing unprofitable
stores.

□Domestic group companies• ChacottStrong sales of ballet, cosmetics, andwellness products, which cater to newlifestyles.
• Creative Yoko
Products for home consumption suchas pet-related products were popular.

□Overseas group companies• Reforms of Italian operations completed,making European operations profitable.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

5

Slide 5 rearranges the information from slide 4 in the form of a waterfall chart detailing year-on-yearchanges in net sales and operating income.
Net sales declined in Europe due to the withdrawal from Italian operations, but we still achieved net sales
growth of ¥2,300 million overall as this decline was counteracted by the improvement of sales at Onward
Kashiyama and the sales growth of Chacott and other domestic subsidiaries.
Operating profit recovered largely due to three factors: (1) improved profit at Onward Kashiyama, (2)strong performance at Chacott and other domestic subsidiaries, and (3) the profit buoying benefits ofwithdrawing for Italian operations in overseas businesses.
Going forward, the Onward Group will work to draw out the benefits of the global business reforms while
shifting its attention to growth fields.
Looking next at slide 7, I would like to talk about our consolidated balance sheet.

Early Adoption of New Revenue Recognition Standard

The new revenue recognition standard will be mandatorily applied for all companies
from fiscal years beginning on or after April 1, 2021. The Group will adopt the newrevenue recognition standard early starting in FY02/22.

Key impact of the new revenue recognition standard on the GroupFor transactions with department stores, retail sales will be recorded as sales and rent
equivalents will be recorded as SG&A expenses, whereas previously the net amount after
deducting rent equivalents was recorded as sales.
Loyalty point usage fees, which were previously included in SG&A expenses, will be
excluded from sales.
The above changes will not affect operating profit.

The adoption of the new revenue recognition standard will unify the sales
recognition standards that previously differed by sales channel.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

6

Financial Situation© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

FY02/22 Q1 Financial Situation■Consolidated Balance Sheet(Billion yen)

End-Q1 FY02/22

Current Assets

End-FY02/21

Change

70.2

80.4

-10.2

2

Cash and Deposits

18.6

21.3

-2.7

3

Accounts Receivable

12.6

18.2

-5.6

4

Inventory

29.9

34.3

-4.4

109.2

115.5

-6.3

1

5

Non-current Assets

6

Property, Plant and Equipment

67.3

71.8

-4.5

7

Intangible Assets

10.4

10.6

-0.2

8

Investments and Other Assets

Total Assets
10 Liabilities
9

31.4

33.0

-1.6

179.4

196.0

-16.6
-16.3

120.2

136.5

11

Accounts Payable

17.5

21.9

-4.4

12

Loans Payable

76.5

78.0

-1.5

59.2

59.5

-0.3

13

Net Assets© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

7

Total assets, No.9, stood at ¥179,400 million on May 31, 2021, down ¥16,600 million from February 28, 2021, the previous fiscal
year-end.
Cash and deposits, No. 2, decreased ¥2,700 million, to ¥18,600 million, and notes and accounts receivable—trade, No. 3, were
down ¥5,600 million, to ¥12,600 million, due to improvements in funding efficiency following the withdrawal from operations in
Italy.
Inventories, No. 4, decreased ¥4,400 million, or 13%, to ¥29,900 million due to the withdrawal from operations in Italy and thecurtailing of procurement as part of inventory control measures.
As a result, total current assets, No. 1, decreased ¥10,200 million from February 28, 2021, to ¥70,200 million on May 31, 2021.
Property, plant and equipment, No. 6, declined ¥4,500 million, to ¥67,300 million, as a result of sales of land and structures
based on our policy of more efficiently using assets.
Total non-current assets, No. 5, came to ¥109,200 million on May 31, 2021, down ¥6,300 million from the previous fiscal yearend, partly due to amortization of goodwill.
Liabilities, No. 10, was ¥120,200 million on May 31, 2021, down ¥16,300 million from February 28, 2021.
Notes and accounts payable—trade, No. 11, decreased ¥4,400 million, to ¥17,500 million, as a result of the withdrawal fromoperations in Italy and the curtailing of procurement at Onward Kashiyama.
Borrowings, No. 12, declined by ¥1,500 million, to ¥76,500 million, as revenues from sales of non-current assets were used to
repay borrowings.
Net assets, No. 13, declined ¥300 million from the previous fiscal year-end, coming to ¥59,200 million on May 31, 2021.
This outcome was a result of the recording of profit attributable to owners of parent of ¥2,060 million along with deductions to
net assets including ¥1,600 in dividends paid and ¥1,000 million from revaluation reserve for land.
The global business reforms performed over the past two years greatly enhanced our balance sheet, but also resulted in a
reduction in net assets. Future efforts will include capitalizing on the benefits of the global business reforms and implementing
growth strategies to grow profit and thereby increase net assets for a more stable financial base.
Next, on slide 8, we will look at our cash flows.

FY02/22 Q1 Financial Situation■Consolidated Cash Flows(Million yen)

Q1
FY02/22

FY02/21

Change1 CF from Operating Activities

2,188-15,445

2 CF from Investing Activities-1,662

5,243-6,9053 CF from Financing Activities-3,707

16,169-19,876

4 Balance of Cash and Equivalents

18,59034,755-16,165■Capex+17,633(Million yen)

Q1
FY02/22

FY02/21

Change5 Capex

1,311

1,546

-235

6 Depreciation

1,207

1,406

-199

■Metrics(1,000s of shares)

End-Q1 FY02/22
7 Shareholders' Equity Ratio

End-FY02/21

Change

32.8%

28.9%

+3.9%

8 Shares issued

157,922

157,922-

Average number of shares issued
9during the period (excl. treasury shares)

135,605

135,091+514© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

8

Net cash provided by operating activities, No. 1 on this slide, was ¥2,188 million, compared with net cash used inoperating activities of ¥15,400 million in the previous equivalent period. This massive increase in cash was a result of
profit growth coupled with the cash buoying effect of decrease in inventory.
Net cash used in investing activities, No. 2, was ¥1,662 million as the costs associated with selling and liquidating
operations in Europe outweighed the cash inflows from proceeds from sales of property, plant and equipment.
Net cash used in financing activities, No. 3, was ¥3,707 million due to dividends paid and repayments of borrowings.
Cash and cash equivalents at end of period, No. 4, were ¥18,590 million, a decrease of ¥16,200 million from the endof the previous equivalent period. This decrease was a result of our ability to more efficiently utilize the capital that
had previously been less efficiently dispersed among numerous subsidiaries following the withdrawal fromoperations in Italy.
Given the total of ¥50,000 million in commitment lines concluded with a banking group centered on threemegabanks, we have secured a sufficient amount of cash and deposits.
Capital investment, No. 5, totaled ¥1,300 million. Investments were limited to those deemed completely necessary
and primarily consisted of investments in our Dalian factories as well as investments in sales floor fixtures and officerenovations.
Depreciation and amortization, No. 6, decreased to ¥1,200 million from the previous equivalent period.
The shareholders’ equity ratio, No. 7, recovered from 28.9% on February 28, 2021, to 32.8% on May 31, 2021. We
look to raise this ratio to around 40% going forward.

DATA BOOK

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

DATA BOOK FY02/22 Q1 Results
Sales by Channel
Despite the planned scale back of website traffic to stabilize operations for the complete replacement of the inhouse e-commerce system, e-commerce sales of domestic group companies using e-commerce grew 5.1%
YoY while the e-commerce ratio remained above 30%. Total consolidated e-commerce sales, including
overseas sales, amounted to approximately 11 billion yen.

Department
StoresOther ECommerce
Platforms

E-Commerce
Total

E-Commerce
Ratio

Total Sales

6,648

15,624

6,171

640

6,811

22,435

29.6%

69.6%

27.5%

2.9%

30.4%

100.0%

YoY

127.2%

194.6%

149.2%

92.3%

160.8%

96.1%

127.8%-10.0%

-3.8%

2,338

5,151

7,489

2,907

561

3,468

10,957

31.7%

83.8%

Total of Domestic Group Companies

11,314

11,79923,113

9,078

1,201

10,27933,392

30.8%

88.3%

% of sales

33.9%

35.3%

69.2%

27.2%

3.6%

30.8%

100.0%

YoY

125.9%

162.2%

142.1%

102.1%

135.7%

105.1%

128.2%

-6.8%

-2.6%

Eight Domestic Subsidiaries
Using E-Commerce *1

5 Using E-Commerce*

30.4%(Million yen)
Directly
Managed
E-Commerce
Ratio

40.0%

3

7

Directly Managed
E-Commerce

8,976

2

6

Physical Stores
Total% of sales

1 Onward Kashiyama

4

Shopping Centers
and Other

90.6%

1 Domestic Subsidiaries Using E-Commerce (Island, Tiaclasse, Onward Personal Style, Chacott, Creative Yoko, Yamato, Intimates, KOKOBUY)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

9

Slide 9 and beyond constitutes a data book. On Slide 9, you will find a breakdown of net sales by sales
channel.
In the three-month period ended May 31, 2021, we took intentional measures to curb the direction of
traffic to our websites to allow for stable operation in conjunction with the complete replacement of our
in-house e-commerce systems. Nonetheless, total e-commerce sales at companies performing ecommerce operations were up 5% year on year, and e-commerce sales accounted for more than 30% ofsales at these companies.

DATA BOOK FY02/22 Q1 Results

Results by Group Company
Onward Kashiyama (Nonconsolidated)

Domestic Subtotal (Excl. Onward Kashiyama)

Q1
FY02/22

1

2

3

4

FY02/21

Overseas Total(Million yen)

Q1
ChangeYoY

FY02/22

Sales

22,435

17,560+4,875127.8%

Gross Profit

13,076

10,119+2,957129.2%(% of Sales)

58.3%

57.6%

+0.7%

SG&A
Expenses

12,306

11,692+614(% of Sales)

54.9%

66.6%

-11.7%

Operating
Profit770-1,573+2,343(% of Sales)

3.4%

-

105.3%-

17,202

FY02/21

16,036

Q1
ChangeYoY+1,166107.3%

111.6%

8,439

7,564

+875

49.1%

47.2%

+1.9%

7,379

6,766

+613

42.9%

42.2%

+0.7%

1,060

798

+262

6.2%

5.0%

+1.2%

109.1%

132.8%

FY02/228,643

FY02/21

ChangeYoY

12,713-4,070

68.0%

3,352

4,914

-1,562

68.2%

38.8%

38.7%

+0.1%

3,339

5,232

-1,893

38.6%

41.2%

-2.6%

13

-318

+331

0.2%

-

63.8%

-

Note: Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22
Note: Figures for Domestic Subtotal (Excl. Onward Kashiyama) and Overseas Total are simple sums before consolidated eliminations© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

10

DATA BOOK FY02/22 Q1 Results(Million yen)

Q1
Breakdown of SG&A expenses

FY02/22

FY02/21

YoY-937+1,315
+15
-214
-97
-383
-301
-1,630-1,931

90.5%
128.1%
100.9%
87.5%
90.3%
90.7%
98.7%
32.3%
92.4%

6
0
515
282
473
-107
-25
-316
829

10
11
116
226
-117
-22
-120
104

-4
-11
+399
+282
+247
+10
-3
-196
+725

60.0%
0.0%
444.0%
209.3%
91.5%
113.6%
263.3%
797.1%

22 Loss on sales of affiliated companies

4,818
63
2,944
-2,027

1,994-+2,824+63+2,944-2,027241.6%-

23 Loss on liquidation of affiliated companies-1,968--1,968

-

-779
-155

-2,420-452+1,641
+297

32.2%
34.3%

-

-458

+458

-

0
2,895

-7
-1,346+7+4,2410.0%-

2 Rent3 Transportation
4 Promotion and Advertising
5 Depreciation
6 Other
7

Total SG&A expenses

8

Extraordinary loss adjustment

9

8,905
5,987
1,602
1,501
902
3,735
22,632779
23,411

Change

9,842
4,672
1,587
1,715
999
4,118
22,933
2,409
25,342

1 Personnel(Reference) Effective SG&A expenses
Note: Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22

Breakdown of non-operating ｉ ncome/expenses
10 Interest income
11 Dividend income
12 Foreign exchange gains
13 Subsidy income
14 Other non-operating income
15 Interest paid
16 Loss on equity method investments
17 Other non-operating expenses

Non-operating ｉncome/expenses

18

Breakdown of extraordinary income/losses
19 Gain on sales of non-current assets
20 Gain on sales of investment securities
21 Gain on sales of affiliated companies

24 Loss related to temporary closures
25 Impairment loss
26 Loss on valuation of investment securities
27 Other28

Extraordinary income/losses© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

11

If you look at slide 11, you will see a detailed breakdown of SG&A expenses, non-operating income andexpenses, and extraordinary income and losses. I hope you will use this information as a reference.
With this, I conclude our discussion of financial results in the three-month period ended May 31, 2021.

DATA BOOK FY02/22 Q1 Results(Million yen)
Q1

Results by segment
FY02/22
1
2
3
4
5

D
o
m
e
s
t
i
c

6
7
8
9
10
11
12
13
14

O
v
e
r
s
e
a
s

FY02/21

Change24,245

Operating Profit

495-1,691+2,186

-

Sales

8,875

7,383

+1,492120.2%

ApparelLifestyle+4,681

YoY

28,926

Sales

119.3%

723

329

+394

219.8%

Sales

37,801

31,628+6,173119.5%

Operating Profit

1,218-1,362+2,580

-

Sales

7,878

10,713-2,835

73.5%

Operating Profit

Operating Profit

Domestic Total

Apparel

220

-527

+747

-

Sales

343

1,378

-1,035

24.9%

Operating Profit

-251

42

-293

-

Sales

8,221

12,091-3,87068.0%

LifestyleOverseas Total

-31

-485

+454

-

Sales

46,022

43,719+2,303105.3%

Operating Profit

1,147-1,851+2,998-Operating Profit

Consolidated Total

Note: Q1 represents December through February for European companies and January through March for US and Asian companies
Note: Figures for Q1 FY02/21 have been adjusted to reflect the new revenue recognition standard used in Q1 FY02/22
Note: Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 10 other companies; 14 companies in total)
Overseas Apparel (8 companies in the JOSEPH Group, J.PRESS, Onward Fashion Trading and 8 other companies; 18 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato, KASHIYAMA DAIKANYAMA, and 6 other companies; 10 companies in total)
Overseas Lifestyle (Onward Beach Resort Guam and 9 other companies; 10 companies in total)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

12

Consolidated Performance Forecast© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

I would now like to discuss our forecasts for the six-month period ending August 30, 2021, and for fiscal
2021.
Net sales growth in the three-month period ended May 31, 2021, recovered slower than expected due tothe prolongation of Japan’s state of emergency declaration.
However, we also saw improvements in the gross profit margin and reductions in fixed costs as a result of
the global business reforms.
During the second quarter, we expect poor performance for the apparel industry as a whole as this will bea period of sales and inventory clearance.
Looking ahead, we will revise sales approaches and product strategies to improve our second-quarter
profit mix in an attempt to make the second quarter a profit-generation period. However, the outlook
remains opaque, and we have therefore chosen not to revise our previously released forecasts for the sixmonth period ending August 31, 2021, and for fiscal 2021. Thus, as previously disclosed, we project
operating loss of ¥3,200 million in the six-month period ending August 31, 2021, and operating profit of¥3,000 million for fiscal 2021, and we aim to ensure these forecasts are met.
This ends my presentation. Thank you for watching this video until the end.

The information in this presentation is not a solicitation to purchase or sell Onward
Holdings stock. Opinions and forecasts stated herein represent the judgments of theCompany at the time this presentation was prepared. Onward Holdings makes noguarantee regarding the accuracy of the information in this presentation and may
make revisions without prior notice. Onward Holdings and the providers of thisinformation assume no responsibility whatsoever for any losses incurred inassociation with this information.

© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.