Presentation of Interim Results for theFiscal Year Ending February 29, 2008

Outline

1 Results for the Interim Period and Plans for Fiscal 2008
¾ Results for the Interim Period, Plans for Fiscal 2008
¾ Operating Conditions by Business Segment¾ Sales by Sales Channel (Onward Kashiyama)No. 2～42 Outline of Policies for Fiscal 2008 and Policies for Second Half
No. 5～9¾ Onward Kashiyama’s Performance during the Interim Period and Policies for the Latter
Half¾ Onward Group’s Strategy and Directions¾ Performance of Principal Subsidiaries¾ Conditions in Japan’s Apparel Market¾ Onward Kashiyama’s Performance and Issues to be Addressed

3 Data on Principal Financial Indicators

No. 11～15

The forecasts and future prospects contained in this document are based on information available to theCompany at the time of preparation, but are subject to risks and uncertainties. Accordingly, please beaware that actual performance and actual results may differ substantially from those stated here, as aconsequence of changes in various factors.

１Results for the Interim Period, Plans for Fiscal 2008
Results for the Interim Period
Nonconsolidated

Data for
Reference

9Aggressive development and introduction

Performance in Fiscal 2006
under IMPACT 21¥ billion
Amounts

Change% change

Net sales

102.9-2.0(-2.0%)

Operatingincome5.7-2.1(-27.1%)

Ordinary income

8.2-2.1(-20.6%)

Net income

9.8+10.4

Consolidated

Principal Factors and Reform
Measuresand losses
9Also led to dispersal of resources (people,¥ billion
ChangeAmountof new brands led to missing of sales targets

goods and capital) and had an
adverse impact on existing major core brands% change

Net sales

140.8-12.2(-8.0%)

Operatingincome

7.4-3.5(-32.3%)

Ordinary income

10.9-0.9Net income

6.3+6.8(-8.0%)

9Domestic and overseas subsidiaries reported¾Net sales¥15.1 billion

generally steady performance and especially¾Operating income ¥2.1billion

in Europe and Asia exceeded their targets¾Ordinary income ¥2.1 billion

for revenues expansion¾Net income¥1.2 billion

Plans for Fiscal 2008
Consolidated
Net sales

Operating income

Amount292.0
20.4¥ billion
Change-26.6-5.0% change(-8.4%)(-19.8%)9Will cut back and eliminate unprofitablebrands and work to improve performanceby strengthening major core brands again

Ordinary income

25.5-1.9(-7.0%)

Net income

13.0+1.5( 13.7%)

in the second half.

¾Net sales¥30.6 billion¾Operating income ¥3.8 billion¾Ordinary income ¥3.9 billion¾Net income¥2.2 billion

2

Operating Conditions by Business Segment
ApparelApparelandandservice
servicebusinesses
businessesreportreportdeterioration
deteriorationin
inperformance
performance
ResortResortbusinessbusinessreturns
returnstotoprofitability
profitabilityas
asbusinessbusinessbase
baseisisstrengthened
strengthened(unit: ¥ million)

Fiscal 2008 Interim Period
Net sales

Fiscal 2008 Second Half (Planned)

Ordinary income

Net sales

Ordinary income

Fiscal 2008 (Full Year)Net sales

Ordinary income

ChangeAmounts

ChangeAmounts

ChangeAmounts

ChangeAmounts

Change9,923(-23.6%)

147,159(-8.6%)

14,687(-0.2%

282,693(-9.2%)

24,610(-11.2%)(-5.6%)

332(-37.5%)

11,198(-19.7%)277(-32.9%)22,743(-13.2%)609(-35.5%)3,236(42.9%)

51

3,328(24.7%)

197

6,564

(33.1%)

248

Total before
eliminations

150,315(-8.9%)

10,306(-22.7%)

161,685(-8.9%)

15,161（0.9%）

312,000(-8.9%)

25,467

Eliminations forconsolidation-9,479――-10,521――-20,000―

Consolidated Total

140,836(-8.0%)(-8.0%)

151,164(-8.7%)(-6.1%)

292,000(-8.4%)

Amounts

ChangeAmounts

Apparel

135,534(-9.9%)

Services

11,545

Resorts

642

10,948-609

14,55233

25,500(-10.2%)―(-7.0%)

3

Sales by Sales Channel (Onward Kashiyama)
Sales
Salesatatdepartment
departmentstoresstoresdeclined
declined3.1%
3.1%because
becauseofofweakness
weaknessin
inmajormajorcore
corebrands
brands
Sales
Salesthroughthroughnew
newchannels
channelsgrew
grew3%
3%asassalessalesofofcorecorebrands
brandsheld
heldfirm
firm
C o m pa r i s o n o f de pe r t m e n t s t o r e a ppa r e l s a l e s a n d O n w a r ds ale s (% c h an g e ye ar o n ye ar )OnwardAll depatment stores(including existing and new store)

15. 0%
10. 8%
10. 0%

5. 0%
0. 0%

-5. 0%
-M
4a.8
r .%

-A
5p.0
r .%

-3. 9%May.

Ju n .

Ju l .

-1. 3%Aug .

-3. 1%
T o t a l fo r
thei nteri m-10. 0%per i od-11. 1%

Source: Japan Department Stores
Association-15. 0%

C o m pa r is o n o f do m e s t ic s h o ppi n g c e n t e r (S C ) s a l e s a n d O n w a r ds a l e s t h r o u g h n e w dis t r i bu t i o n c h a n n e l s (% c h a n g e y e a r o n y e a r )OnwardAll SC's (including existing and new stores)

1 5 .0 %1 1 .0 %1 0 .0 %5 .0 %

4 .8 %

5 .0 %

3 .0 %
0 .3 %0 .0 %- 0 .7 %- 0 .8 %- 5 .0 %M a r.

Apr.

May.

Jun.

J u l.

Au g .

T o tal f o r
th e in te rim
pe rio d

New distribution channels: Refers to “fashion buildings” (multistory facilities housing boutiques and other retail outlets) andshopping centers.

Source: Japan Council of Shopping Centers

4

Onward Kashiyama’s Performance during theInterim Period and Policies for the Latter Half
InterimInterim Period
Period Performance
Performance

Existing brands¾Net sales ¥96,978 millionincome（Including（Includingtrading
tradingbusiness）
business）（Including（Includingtrading
tradingbusinessbusinessfrom
fromsecondsecondhalf）
half）（-3.1%）¾Net sales¥103,591 million （-1.1%）¾Net sales¥200,569 million （2.1%）¾Ordinary ¥12,994 million （-3.5%）
income¾Ordinary（ -13.7%）¥22,975 million （-8.2%）¾Ordinary¥9,981 million

Plan
Plan forfor FullFull Fiscal
Fiscal Year
Year

Plan
Plan forfor Second
Second Half
Half

Principal factors

incomePrincipal factors¾Weakness in apparel market due toweather and other factors¾Lackluster performance of majorcore brands, accumulation of
inventories result in decline of grossmargin¾Concentration of resources on major
Secure Profit for the Yearcore brands¾Lower inventory ratio stemmingfrom improved flexibility led to better
margins
Reallocation ofManagement Resources¾Net sales¥6,008 million（20.9 % ）New Brands¾Ordinary -¥1,686 million（-¥565 million）
incomePrincipal factors

合計
Total

¾Ordinary
income（28.6%）¾Ordinary -¥1,089 million（¥692 million）
income¾Net sales ¥13,631 million（25.1%）¾Ordinary -¥2,775 million （¥127 million）
incomePrincipal factors¾Expansion in loss due to missing of
initial sales targets¾Net sales ¥102,986 million¾Net sales ¥7,623 million（-2%）¥8,295 million （-20.6%）¾Elimination of unprofitable brands in second
half¾Focus on strong brands, early return toprofitability

Improvement in Profitability¾Net sales ¥111,214 million （0.5%）¾Net sales ¥214,200 million （-0.7%）¾Ordinary¾Ordinary

income¥11,905 million （1.9%）¥20,200 million （-8.7%）

income5Onward Group’s Strategy and DirectionsDomestic
Domestic BusinessBusiness“Stable Expansion of Profits”¾Selection and concentration in brand business¾Sharp tuning of business strategies

Overseas
Overseas BusinessBusiness“Aggressive Business Expansion”

Borderlessness ¾Expand profits of enterprises in Europe (GIBO’
CO. Group, JOSEPH Group)¾Aggressive expansion in Asia

Success overseas supports success in Japan¾Strengthen Group management capabilities

Further improvement inmanagement efficiency¾Transition to holding company system

Accelerate Group growthstrategy

Onward Holdings～～

Onward Kashiyama

Onward Trading

Onward Resort

GIBO’CO Group

Across& GolfJOSEPH Group

Transport

Number of companies:
In Japan: ３６Overseas: ６４
Total １００

New Business

M&A6Performance of Principal Subsidiaries: Plans for Fiscal 2008
Domestic Business
Strengthen basic capabilities
and achieve stable growth

Onward Kashiyama
Principal operating companies

Onward Trading

Overseas BusinessAccelerate business expansion
and growth strategies
European region

GrowthＪＯＳＥＰＨ Group¾Net sales ¥35.9 billion（10.6%）

ＧＩＢＯ’ＣＯ. Group
OthersAsian region

Chacott

GrowthOnward China,
Others¾Net sales¥6.3 billion（38.2%）Bus Stop
Onward Creative Center

United States
GrowthＪ．ＰＲＥＳＳAcross TransportTotal¾Net Sales¾Ordinary
incomeGrowth¥265.0 billion （-12.3%）¥21.4 billion（-18.0%）

Onward Beach Resort Guam

¾Net sales ¥4.8 billion（50.8%）

Onward Golf Resort Guam
Other

¾Sales（16.9%）¥4.1 billion（79.7%）¾Ordinary
incomeGrowth¥47.0 billion* "Total" refers to the arithmetic sum before eliminations for consolidation.

7

Conditions in Japan’s Apparel Market

More Pronounced Bipolarization“From advanced countries to Japan”“From the rest of Asia to Japan”

・Entry of luxury brands
・Entry of lower priced fashionable brands

・Direct entry of low-priced products

・Sales area of Japanese apparel manufacturers in urban department stores declines⇒ Applying same business style as in urban to regional department stores

Musical chairs game accelerates“Creating Brands with Real Value is Essential”
8Onward Kashiyama’s Performance and Issues to be Addressed

Current Performance and Issues¾Lackluster performance of new brands（Result：Proliferation of small-scale brands aimed at niche markets）¾Dispersal of management resources (people, goods and capital)¾Major core brands encounter difficultiesMajor
Major decline
decline inin profitability
profitability

Direction
Selection and Concentrationin Brands“Clarify areas for attack anddefense！”

9Review/cut back on brands with issues
to address
9Develop major brands with companywide
involvement“Make Full Commitment to Brand-Leveraged
Management”
9Data on Principal Financial Indicators: Table of Contents

Principal Financial Indicators

No. 11～15¾ Consolidated Results in Fiscal 2008 (Actual and Planned)¾ Results for Onward Kashiyama in Fiscal 2008 (Actual and Planned)¾ Onward Kashiyama’s Sales by Product and Distribution Channel¾ Onward Kashiyama’s Trends in Sales Area and Monthly Sales¾ Trends in Capital Investment and Depreciation

10

Consolidated Results in Fiscal 2008

（Unit: ¥ million）

Interim periodPlan for second half

Plan for full fiscal year

Fiscal
2008

Fiscal2007

Change% change

Fiscal
2008

Fiscal2007

Change%change

Fiscal
2008

Fiscal2007

Change%change

Net sales

140,836

153,097-12，261（-8.0%）

151,164

165,593-14，429（-8.7%）

292,000

318,690-26，690（-8.4%）

Gross profit

63,252

68,910-5，658（-8.2%）

69,24873,985-4，737（-6.4%）

132,500142,895-10，395（-7.3%）（Ratio）（44.9%）(45.0%)（-0.1%）（45.8%）(44.7%)（1.1%）（45.4%）(44.8%)（0.6%）

Operatingexpenses

55,84557,967-2，12256,25559,497-3，242

112,100

117,464-5，364（37.2%）(35.9%)（1.3%）（38.4%）(36.9%)（1.5%）

12,993

14,488-1，495

20,40025,431-5，031（8.6%）(8.7%)（-0.1%）（7.0%）(8.0%)（-1.0%）

14,552

15,501-949

25,50027,407-1，907（8.7%）(8.6%)（0.1%）

13,00011,4381，562（4.5%）(3.6%)（0.9%）（-3.7%）（Ratio）（39.7%）(37.9%)（1.8%）

Operatingincome7,407

10,943-3，536（Ratio）（5.3%）(7.1%)（-1.8%）

Ordinary
income10,948

11,906-958（Ratio）（7.8%）(7.8%)（0.0%）（9.6%）(9.4%)（0.2%）Net income

6,357

- 534

6，891

6,643

11,972-5，329（Ratio）（4.5%）(-0.3％）（4.8%）（4.4%）(7.2%)（-2.8%）（-32.3%）（-8.0%）（-5.4%)（-10.3%）（-6.1%）（-44.5%）（-4.6%）（-19.8%）（-7.0%）（13.7%）

11

Results for Onward Kashiyama in Fiscal 2008
(Trading Business Group of Onward Trading included in second half)（Unit: ¥ million）

Interim period of fiscal 2008
Fiscal
2008

Fiscal2007

Net sales

102,986

Gross profit

Plans for second half

Change% change

Fiscal
2008

Fiscal2007

105,069-2,083（-2.0%）

111,214

46,681

48,224-1,543（-3.2%）（Ratio)（45.3%）(45.9%)（-0.6%）

Operatingexpenses

40,97640,394582

Change%changeFiscal
2008

Fiscal2007

110,666548（0.5%）

214,200

52,21951,1151,104（2.2%）（47.0%）(46.2%)（0.8%）

41,62440,712912（37.4%）(36.8%)（0.6%）

10,595

10,403192（9.5%）(9.4%)（0.1%）

11,905

11,679226（1.4%）（Ratio）（39.8%）(38.4%)（1.4%）

Operatingincome

5,705

7,830

-2,125（Ratio）（5.5%）(7.5%)（-2.0%）

Ordinary
income8,295

10,450-2,155（Ratio)（8.1%）(9.9%)（-1.8%）（10.7%）(10.6%)（0.1%）Net income

9,848-589

10,437

5,952

8,230-2,278（Ratio）（9.6%）(-0.6％）（10.2%）（5.4%）(7.4%)（-2.0%）（-27.1%）（-20.6%）

Plans for fiscal 2008

（2.2%）（1.8%）（1.9%）（-27.7%）

Change%change215,735-1,535（-0.7%）

98,90099,339-439（-0.4%）（46.2%）(46.0%)（0.2%）

82,60081,106

1,494（38.6%）(37.6%)（1.0%）

16,30018,233-1,933（7.6%）(8.5%)（-0.9%）

20,20022,129-1，929（9.4%）(10.3%)（-0.9%）

15,800

7,641

8,159

（7.4%）(3.5%)（3.9%）（1.8%）（-10.6%）（-8.7%）（106.8%）12Onward Kashiyama’s Sales by Type and Distribution Channel(Including trading business from second half)<Sales by type>（Unit: ¥ million）

Interim period of fiscal 2008
Amount% change

Plans for the second half
AmountPlans for fiscal 2008% change

Amount% change

Men’s

29,526-1.3%

32,973

1.8%

62,4990.3%

Women’s

64,777-1.9%

69,2760.5%

134,053-0.7%

Children’s

3,607

-9.1%

4,131

-6.3%

7,738

-7.6%

Kimono

1,877

-5.7%

1,404

-10.1%

3,281

-7.6%

Other

3,199

2.4%

3,430

2.5%

6,629

2.5%

Total

102,986-2.0%

111,2140.5%

214,200-0.7%（Unit: ¥ million）<Sales by distribution channel>
Interim period of fiscal 2008
Amount% change

Plans for the second half
AmountPlans for fiscal 2008

% changeAmount% change

Department stores

68,422-3.1%

76,611-2.2%

145,033-2.6%

New distribution
channels

15,8733.0%

17,396

4.0%

33,269

3.5%

Specialty stores

2,963

-5.2%

3,028

-4.3%

5,991

-4.8%

Chain stores

1,265

-4.2%

1,511

-5.9%

2,776

-5.1%

Other

14,463-1.1%

12,66816.8%

27,131

6.5%

Total

102,986-2.0%

111,2140.5%

214,200-0.7%

13

Onward Kashiyama’s Trends in Sales Area and Monthly Sales
TrendsTrends inin Onward
Onward Kashiyama’s
Kashiyama’s Sales
Sales Area
Area
Fiscal 2004Dept.
StoresNew
Channels

Fiscal 2005

Fiscal 2006

Fiscal 2007

Interim fiscal 2008

Plans for fiscal2008

Sales(¥ million)

126,016

4.3%

133,973

6.3%

139,376

4.0%

148,911

6.8%

68,422-3.1%

145,033-2.6%

Sales area(m2)

157,970

4.9%

175,000

10.8%

174,310-0.4%

182,480

4.7%

183,000

0.8％

182,510±0%

Sales(¥ million)

25,71339.6%

29,31814.0%

30,0642.5%

32,138

6.9%

15,8733.0％

33,269

3.5%

Sales area(m2)

73,45029.3%

87,47019.1%

92,190

5.4%

95,8303.9%

95,110

4.3％

97,9502.2%

TrendsTrends inin Onward
Onward Kashiyama’s
Kashiyama’s Monthly
Monthly Sales
Sales(Unit: %）Fiscal 2008

MarAprMayJunJul

AugInterimMen’s-4-4-28-5-2-1

Women’s-5-6-3

13-82-2Children’s-11-7-9-2-14-9-9

Kimono-8-9

192-12-12-6

Other

7-1-16137

3

2

Total-4-5-3

11-7

±0-2

Sept

Oct

Nov

Dec

JanFebSecondhalf

Fullyear14

Trends in Capital Investment and Depreciation＜Ｃａｐｉｔａｌ Ｉｎｖｅｓｔｅｍｎｔ＞＜Ｄｅｐｒｅｃｉａｔｉｏｎ＞（Unit: ¥ million)

12,0008,000

10,0008,000

6,000
Non-consolidatedconsolidated

6,000
4,000
2,000

（Unit: ¥ million)

Non-consolidated
consolidated

4,000
2,000

00
2003

2004

2005

2006

2003

2007

2004

2005

2006

2007

（Year)（Year)[Depreciation][Capital Investment]（Unit: ¥ million）（Unit: ¥ million）

Fiscal
2004

Fiscal
2005

Fiscal
2006

Fiscal2007

InterimFiscal
2008

Plans forfiscal
2008

Consolida
ted

7,145

9,076

8,053

10,506

4,943

8,800

OW

5,716

8,280

7,238

8,046

3,019

6,500

InterimFiscal
2008

Plans forFiscal
2008

6,697

3,363

7,100

4,890

2,535

5,200

Fiscal
2004

Fiscal
2005

Fiscal
2006

Fiscal2007

Consolidat
ed

7,530

7,041

7,053

OW

5,057

5,353

5,542

OW: Onward Kashiyama

15