Consolidated Financial Results
for the Nine Months Ended November 30, 2022
[Japanese GAAP]
January 12, 2023
Company name: Onward Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Securities code: 8016
URL: https://www.onward-hd.co.jp/en/
Representative: Michinobu Yasumoto, President and CEO
Contact: Osamu Sato, Director in charge of Finance, Accounting, Investor Relations
Phone: +81-3-4512-1030
Scheduled date of filing quarterly securities report: January 13, 2023
Scheduled date of commencing dividend payments: –Availability of supplementary materials on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled (for institutional investors, securities analysts, andthe press)(Amounts of less than one million yen are rounded down.)
1. Consolidated Performance for the Nine Months Ended November 30, 2022 (March 1, 2022 – November 30,
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
Nine months ended Million yen% Million yen% Million yen% Million yen%
November 30, 2022
130,397
4.9
4,315
–
4,698
–
2,723 (66.3)
November 30, 2021
124,355
(6.0)
(948)
–
(759)
–
8,082
–
(Note) Comprehensive income: Nine months ended November 30, 2022: 9,849 million yen [(2.1)%]
Nine months ended November 30, 2021: 10,058 million yen [–%]
Basic earnings
Diluted earnings
per shareper share
Nine months ended
Yen
Yen
November 30, 2022
20.08
20.05
November 30, 2021
59.60
59.48
(Reference) EBITDA (operating profit + depreciation and amortization):
Nine months ended November 30, 2022: 8,244 million yen [191.0%]
Nine months ended November 30, 2021: 2,832 million yen [–%]
(2) Consolidated Financial Position
Total assets

Net assets

Shareholders’equity ratio

Million yen
Million yen
166,028
As of November 30, 2022
84,938
157,727
As of February 28, 2022
77,257(Reference) Shareholders’ equity: As of November 30, 2022: 74,718 million yen
As of February 28, 2022: 66,886 million yen

%
45.0
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
175,000
3.9
5,000–
5,200 925.1
2,600 (69.7)
19.17(Note) Revision to the performance forecast announced most recently: Yes(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 28, 2023 (forecast): 10,000 million yen [155.4%]
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 November 30, 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 November 30, 2022:
22,235,698 shares
As of February 28, 2022:
22,287,771 shares
3) Average number of shares outstanding during the period:
Nine months ended November 30, 2022:
135,642,227 shares
Nine months ended November 30, 2021:
135,614,518 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) Notes to Quarterly Consolidated Financial Statements .................................................................... 8(Uncertainties of entity’s ability to continue as going concern) .................................................. 8(Notes when there are significant changes in amounts of shareholders’ equity) .............................. 8(Changes in significant subsidiaries during the period under review) ........................................ 8(Changes in accounting policies) ................................................................................................... 8(Additional information) ............................................................................................................... 8(Segment information, etc.) ......................................................................................................... 9(Significant events after reporting period) ................................................................................ 10

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the nine months ended November 30, 2022, the outlook for the Japanese economy remained uncertain
due to soaring prices of energy resources and raw materials caused by the international situation, as well as theongoing depreciation of the yen, which outweighed the benefits of the recovery trend that is supported by the
progress in normalizing economic activities on the back of the relaxation of behavioral restrictions related to
COVID-19.
In these circumstances, Click and Try, an OMO (Online Merges with Offline) service that enables customers
to order products from the official online store and to try on and purchase them at physical stores, had user
numbers that remained at a high level, contributing to sales expansion at physical stores. In addition, based on
the policy of concentrating management resources on its own brand business as part of global business reforms,
the Company is moving ahead with business in both the apparel and lifestyle segments with the aim of achieving
the goals outlined in ONWARD VISION 2030, the Company’s medium-to long-term management vision
formulated in April 2021. During the period under review, the Company acquired the trademark rights in Japanto the American lifestyle brand JOSEPH ABBOUD to further strengthen and promote the brand business. The
Company will go about actively opening up stores within new sales channels for the brand such as shopping
centers, street-facing shops, and third-party online marketplaces, and of course, within the existing department
store sales channel as well, and will significantly expand its product lines to accelerate the growth of JOSEPHABBOUD into the Group’s core brand.
As a result of the above, consolidated net sales amounted to 130,397 million yen (a 4.9% increase year onyear), consolidated operating profit amounted to 4,315 million yen (an operating loss of 948 million yen for thesame period of the previous fiscal year), consolidated recurring profit amounted to 4,698 million yen (a recurring
loss of 759 million yen for the same period of the previous fiscal year), and profit attributable to owners of parent
amounted to 2,723 million yen (a 66.3% 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 nine months ended November 30, 2022 was 8,244 million yen (a 191.0% increase year onyear).
Status by segment is as follows.
[Apparel Business]
In the domestic business, at Onward Kashiyama Co., Ltd., a core operating company, sales continued to increase
at OMO-type stores, which introduced the Click and Try service, contributing to strong sales at physical stores,
primarily department stores. At Island Co., Ltd., which operates Grace Continental, sales recovered due tosuccessful sales promotion initiatives. In addition, sales increased at Onward Personal Style Co., Ltd., whichdevelops the KASHIYAMA brand, owing to revisions to sales prices and profitability improved thanks to
reduction of fixed costs resulting from enhanced business efficiency.
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 a significant return to profitability in the Apparel Business.
[Lifestyle Business]
Sales increased steadily at Chacott Co., Ltd., which operates a wellness business, due to strong performance of
products in its mainstay ballet and fitness wear merchandise line. At Yamato Co., Ltd., which conducts a gift
catalogue business, both sales and profit increased due to sustained growth in bridal-related demand. Creative2

Yoko Co., Ltd., which is engaged in a pet and home life business, also continued to perform strongly. Sales andprofit increased for all of the major companies in the Lifestyle Business.
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 third quarter of the fiscal year under review increased by 8,300 million yen
compared with the end of the previous fiscal year to 166,028 million yen. This was primarily due to increases innotes and accounts receivable—trade, and contract assets of 3,454 million yen, merchandise and finished goodsof 5,688 million yen, and investment securities of 3,137 million yen, and decreases in cash and deposits of 2,207
million yen and buildings and structures of 1,822 million yen.
Liabilities increased by 619 million yen compared with the end of the previous fiscal year to 81,089 million
yen. This was primarily due to increases in notes and accounts payable—trade of 2,712 million yen andelectronically recorded obligations—operating of 2,689 million yen, and decreases in short-term borrowings of
1,073 million yen, and long-term borrowings of 2,762 million yen.
Net assets increased by 7,681 million yen compared with the end of the previous fiscal year to 84,938
million yen. This was primarily due to profit attributable to owners of parent of 2,723 million yen, dividends ofsurplus of 1,627 million yen, an increase in valuation difference on available-for-sale securities of 3,777 million
yen, and an increase in foreign currency translation adjustment of 2,888 million yen.
As a result, the shareholders’ equity ratio was 45.0%.
(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information
Revisions have been made to the consolidated performance forecast for the full year ending February 28, 2023,
which was announced on September 27, 2022, in light of the Company’s third quarter performance. For details,
please see “Notice of Revision to the Performance Forecast,” announced today.

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 November 30, 2022

15,20913,002

14,204

17,65923,908
449
2,478
4,509
(252)
60,50829,597
541
2,645
4,649
(359)
67,73723,00823,371
11,66358,042

21,18523,461
11,47256,120

4,631
4,717
9,349

4,332
5,351
9,684

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

17,254
3,464
2,761
9,209
(204)
32,486
98,291
166,028

(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 November 30, 2022

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

9,073
14,55021,684889
2,302
75
10,94559,522

12,377
2,858

9,615
2,813

247

259

2,503
6,722
24,70980,4702,596
6,283
21,56781,08930,07950,39015,391(20,831)75,03030,07950,39016,460(20,779)
76,151(1,646)
1(5,698)(328)(472)(8,144)122
10,24877,257
157,7272,130
81(5,698)2,560(507)(1,432)
97
10,122
84,938166,028

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine months ended November 30(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
methodForeign exchange losses
Other
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 nine months
ended November 30, 2021
124,355
58,89665,45866,407(948)

For the nine months
ended November 30, 2022
130,397
57,772
72,62568,309
4,315

45
92
–
804
647
1,591

20
107
788
133
205
1,255

304

234

66

42

24
1,006
1,401
(759)

–
595
873
4,698

17,924
103
2,944
269
66
21,308

0
123
1,303
–
29
1,456

1,311
1,829
728
1,968
387
6,225
14,323
6,106
8,216
133
8,082

4
–
723
–
153
880
5,273
2,621
2,652
(71)
2,723

6

Quarterly Consolidated Statements of Comprehensive Income
Nine months ended November 30(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 nine months
ended November 30, 2021
8,216

For the nine months
ended November 30, 2022
2,652

(289)
(17)
1,042
1,080
26
1,841
10,058

3,777
80
–
3,374
(34)
7,197
9,849

9,902
155

9,435
414

7

(3) Notes to Quarterly Consolidated Financial Statements(Uncertainties of entity’s ability to continue as going concern)
Not applicable.
(Notes when there are significant changes in amounts of shareholders’ equity)
Not applicable.
(Changes in 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.
(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.

8

(Segment information, etc.)
I Nine months ended November 30, 2021 (From March 1, 2021 to November 30, 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)

83,633

12,407

96,041

28,313

124,355–

124,355

545

849

1,395

1,200

2,595

(2,595)–84,179(1,949)13,257(778)

97,436(2,728)29,513
1,870

126,950(858)(2,595)(90)

124,355
(948)

Total

(Notes) 1. The adjustment amount for segment profit (loss) of (90) million yen includes amortization of goodwillof (572) million yen, elimination of intersegment transactions of 2,810 million yen, and corporate
expenses not allocated to reportable segments of (2,329) 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.

9II Nine months ended November 30, 2022 (From March 1, 2022 to November 30, 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)

89,836

9,536

99,372

31,025130,397–

130,397

706

1,284

1,990

1,192

3,182

(3,182)–90,542
3,227

10,820(1,111)

101,363
2,115

32,217
3,138

133,580
5,254(3,182)(938)

130,397
4,315

Total

(Notes) 1. The adjustment amount for segment profit (loss) of (938) million yen includes amortization of goodwillof (614) million yen, elimination of intersegment transactions of 2,345 million yen, and corporate
expenses not allocated to reportable segments of (2,669) 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.

10