October 5, 2023
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Onward Group’s Raison d’Être

Copyright © ONWARD HOLDINGS CO., LTD.

Enriching and Adding Color to People’s Lives
while Caring for the Planet© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

22

Contents
Contents

Copyright © ONWARD HOLDINGS CO., LTD.

Consolidated Financial Results and Performance Forecast
Highlights

01
02 FY2023 First Half Consolidated Financial Results
03 FY2023 Full Year Consolidated Performance Forecast
04 Financial Situation
05 Initiative for Human Capital Management
06 Initiative for Sustainable Management
07 TOPICS
08 Appendix© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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4
11
14
17
20
23
26

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01
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Consolidated Financial Results andPerformance Forecast Highlights© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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FY2023 1H : Consolidated Financial Results Highlights

Net Sales

90.4

bn yen+10.0％ YoY+8.2 bn yen YoY

Operating Profit

Recurring Profit

5.0

4.4

bn yen26.0 x YoY+4.8 bn yen YoY

bn yen6.7 x YoY
+3.8 bn yen YoY

Net Profit

2.9

bn yen6.0 x YoY
+2.4 bn yen YoY➢ In the first half of the year, as a result of our focus on strengthening customer-oriented
product development and sales services, our key brands including Nijyusanku and PET
PARADISE performed well, and new brands such as KASHIYAMA and UNFILO grewsignificantly.

Copyright © ONWARD HOLDINGS CO., LTD.

➢ Customers visiting our physical and online stores increased steadily mainly due to theincreased use of our “CLICK & TRY” OMO service and the improved accuracy of ourmarketing measures utilizing social media. As a result, net sales grew faster than thelatest forecast.

➢ Gross profit margin continued to increase owing to the remarkable results of the global
business reforms and improved efficiency in the product supply chain. Meanwhile, the SG&A
ratio declined markedly partly thanks to increased sales efficiency through the development ofmulti-brand stores.

➢ As a result of the above, operating profit, recurring profit, and net profit all increased
significantly.
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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FY2023 Full-Year : Performance Forecasts Highlights

Net Sales

189.2

bn yen

+7.5％ YoY
+13.1 bn yen YoY

Operating Profit

11.0

bn yen2.1 x YoY
+5.8 bn yen YoY

Recurring Profit

10.0

bn yen1.9 x YoY
+4.7 bn yen YoY

Net Profit

5.5

bn yen1.8 x YoY
+2.4 bn yen YoY

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➢ As the results in the first-half of the year were better than the latest forecast,
the Company revised its full-year forecast upward again following theannouncement of the first quarter results, while maintaining its second-halfforecast.
➢ As a result, full-year operating profit is expected to be 11 billion yen andexceed 10 billion yen for the first time in 11 years since FY2012.
➢ Recurring profit is forecast to be 10 billion yen, 1.9 times YoY, and net
profit is expected to be 5.5 billion yen, 1.8 times YoY.

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

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Trends of Operating Profit and Operating Profit Margin◼ Operating profit in FY2023 is expected to exceed the 10 billion yen level for the first time in
11 years since FY2012.
◼ The operating profit margin in FY2023 is expected to be 5.8%, the highest since FY2012.
5.8％(bn yen)

5.0%

Operating Profit

Operating Profit Margin

4.3%

11.2
3.0%

130
3.4%
3.0％

9.4

2.0%

45億円 1.4%

1.7%

3.8

4.2

5.7

1.0%

2.1%

5.2

11.0

80

1.9%

5.2

4.5

-1.0%

30

▲20

-1.1
-0.6％

-3.1
-1.2％

▲70

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-3.0%

-5.0%
2012
年度

2013
年度

2014
年度

2015
年度

2016
年度

2017
年度

2018
年度

2019
年度

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

7

-20.2
2020

▲120

-11.5％
年度

2021
年度

2022
年度

FY2020

FY2021

FY2022

2023
年度
（予想）
FY2023(Forecast)
Note: New revenue recognition standards havebeen applied since FY2020.

Net Sales Breakdown by Channel▍Total of Onward Group’s nine domestic companies
Onward Kashiyama, Island, Tiaclasse, Onward Personal Style, Chacott , Creative Yoko, Yamato, Intimates, KOKOBUYFY2023 1H

E-Commerce

Department
Stores30％

32％

Shopping Centers
and Other

38％

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Changes in Onward Kashiyama’s sales breakdown by channel
Shopping
Centers
and Other

E-Commerce

14％

25％

百貨店

Department
75％
Stores75％© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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FY2023 1H

FY2018FY2008

Shopping
Centers
and Other20％

E-Commerce
Department
Stores66％

28％

Department
Stores

Shopping 39％
Centers and
Other

33％

Shareholder Returns▍Dividend Policy

The Company views the distribution of profits to shareholders as one of the
management’s highest priority issues, and sets a dividend payout ratio
target of 35% or more, ensuring stable and appropriate distribution of profits
in conjunction with its performance.
Along with the further upward revision of the full-year forecast for net profit, theCompany revised upward the year-end dividend to 17 yen this time, up 1 yenfrom the previous forecast. (up 5 yen from 12 yen in FY2022)▍Dividends

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FY2023
Previous Forecast（July 2023）

Initial Forecast(April 2023)

Dividends per Share (yen)

17

16

14

12

Total Dividends (mil. yen)

2,307

2,171

1,900

1,628

Net Profit (mil. yen)

5,462

5,000

4,000

3,061

Payout Ratio

42.2%

43.4%

47.5%

53.2%

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

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FY2022
ActualRevised Forecast(October 2023)

Promote Management that is Conscious of Cost of Capitaland Stock Price■ Approach to financial policies and target financial indicators• Aim to realize returns (profits) in excess of the cost of capital forsustainable improvement of corporate value• Set targets for return on equity (ROE) and return on invested capital(ROIC), keeping in mind the cost of shareholders' equity andweighted average cost of capital (WACC).

Copyright © ONWARD HOLDINGS CO., LTD.

• Demonstrate specific measures (e.g., cash allocation) to achieve
the targets

We plan to disclose the above information together with the updated version
of “ONWARD VISION 2030” and the three-year mid-term management plan,
when the full-year financial results for FY2023 are released in April 2024.

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

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02
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FY2023 First Half Consolidated
Financial Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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FY2023 1H : Consolidated Financial Results◼ Net sales increased to 90.4 billion yen (+10.0%) , up 8.2 billion yen YoY.
◼ Operating profit increased to 5.0 billion yen (26.0 times), up 4.8 billion YoY as aresult of higher gross profit margin (+2.2pp) and a lower SG&A expense ratio(-3.2pp), and the operating profit margin was 5.6% (+5.4pp).
◼ Net profit increased to 2.9 billion yen (6.0 times), up 2.4 billion yen YoY.
◼ EBITDA increased to 7.4 billion yen (2.6 times), up 4.6 billion yen.
1H Results(Million yen)

FY2023

FY2022

Change% of Change

Previous
Forecasut

Change% of Change

1

Net Sales

90,411

82,166+8,245+10.0%

90,000

+411

+0.5%

2

Gross Profit

51,152

44,735+6,417+14.3%

50,980

+172

+0.3%

（% of Net Sales）(56.6%)(54.4%)(+2.2%)(56.6%)

SG&A Expanses

46,13044,542+3.6%

46,980（% of Net Sales）(51.0%)(54.2%)(- 3.2%)(52.2%)

Operating Profit

5,022

193

+2502.1%

4,000（% of Net Sales）(5.6%)(0.2%)(+5.4%)(4.4%)

Recurring Profit

4,412

654

+574.6%

3,400（% of Net Sales）(4.9%)(0.8%)(+4.1%)(3.8%)Net Profit

2,862

476

+501.3%2,400（% of Net Sales）(3.2%)(0.6%)(+2.6%)(2.7%)EBITDA※

7,390

2,838

+160.4%

6,600（% of Net Sales）(8.2%)(3.5%)(+4.7%)(7.3%)

3

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4

5

6

7

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

12+1,588+4,829+3,758+2,386+4,552*Note: EBITDA = operating profit + depreciation and amortization.

(+0.0%)- 850- 1.8%(- 1.2%)+1,022+25.6%(+1.2%)+1,012+29.8%(+1.1%)+462+19.3%(+0.5%)+790+12.0%(+0.9%)

FY2023 1H : Results by Segment◼ In the domestic business, both the apparel and lifestyle segments increased
sales. Operating profit increased significantly to 8.2 times in the apparelsegment, and by 36% in the lifestyle segment.
◼ In the overseas business, sales increased by 16% YoY, and operating
profit/loss improved by 0.5 billion yen, although an operating loss remained.

1H(Million yen)

1

2

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4

5

ApparelLifestyleDomestic Total

Overseas Total

Consolidated Total

FY2023

Change% of Change

Previous
Forecasut

Change% of Change

Net Sales

65,90959,704+6,205+10.4%

65,922- 13- 0.0%

Operating
Profit3,968

484+3,484+719.8%

3,279

+689

+21.0%Net Sales

20,402

19,155+1,247+6.5%

20,557- 155- 0.8%

Operating
Profit

2,022

1,484

+538

+36.3%

1,968

+54

+2.7%

Net Sales

86,311

78,859+7,452+9.4%

86,479- 168- 0.2%

Operating
Profit

5,990

1,968

+4,022+204.4%

5,247

+743

+14.2%Net Sales

9,002

7,733

+1,269+16.4%

8,613

+389

+4.5%

Operating
Profit- 640- 1,132

+492

- 728

+88

Net Sales

90,411

82,166+8,245+10.0%

90,000

+411

+0.5%

Operating
Profit5,022

193+4,829+2502.1%

4,000+1,022+25.6%

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.

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

13

FY2022

Results

03
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FY2023 Full Year Consolidated
Performance Forecast© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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FY2023 Full-Year : Consolidated Performance Forecast◼ Full-year performance forecasts are a combination of the first-half financial results and theprevious second-half forecasts (announced in July 2023).
◼ Net sales are expected to be 189.2 billion yen (+7.5%), up 13.1 billion yen, operating profit
is expected to be 11 billion yen (2.1 times), up 5.8 billion yen, and net profit is expected tobe 5.5 billion yen (1.8 times), up 2.4 billion yen from the previous fiscal year.
Full-Year Forecast
FY2022
ActualChange% of Change

Previous
Forecasut

Change% of Change

1

Net Sales

189,211

176,072+13,139+7.5%

188,800

+411

+0.2%

2

Gross Profit

105,952

96,751+9,201+9.5%

105,780

+172

+0.2%

（% of Net Sales）(56.0%)(54.9%)(+1.1%)(56.0%)

SG&A Expanses

94,93091,537+3.7%

95,780（% of Net Sales）(50.2%)(52.0%)(- 1.8%)(50.7%)

Operating Profit

11,022

5,214+111.4%10,000（% of Net Sales）(5.8%)(3.0%)(+2.8%)(5.3%)

Recurring Profit

10,012

5,319+88.2%

9,000（% of Net Sales）(5.3%)(3.0%)(+2.3%)(4.8%)Net Profit

5,462

3,061

+78.4%

5,000（% of Net Sales）(2.9%)(1.7%)(+1.2%)(2.6%)EBITDA※

16,10010,373+55.2%

15,100（% of Net Sales）(8.5%)(5.9%)(+2.6%)(8.0%)

3
4
Copyright © ONWARD HOLDINGS CO., LTD.

FY2023567*Note:ONWARD
EBITDA = operating
profit + depreciation
and amortization.
© Copyright 2007-2015
HOLDINGS
CO.,LTD.

15+3,393+5,808+4,693+2,401+5,727(+0.0%)- 850- 0.9%(-0.5%)+1,022+10.2%(+0.5%)+1,012+11.2%(+0.5%)

+462

+9.2%
(+0.3%)+1,000+6.6%(+0.5%)

FY2023 Full-Year : Performance Forecasts by Segment◼ In the domestic business, in the apparel segment, net sales are expected to increase by
9.4 billion yen (+7.2%) and operating profit by 4.4 billion yen (1.9 times) from the previous
fiscal year. In the lifestyle segment, net sales are expected to increase by 2.5 billion yen(+6.6%) and operating profit by 0.7 billion yen (+26.3%) from the previous fiscal year.
◼ In the overseas business, net sales are expected to increase by 2.5 billion yen (+14.5%).
Although an operating loss remains, operating profit/loss is expected to improve by 0.7
billion yen.
Full-Year Forecast

12

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3

4

5

ApparelLifestyleDomestic Total

Overseas Total

Consolidated Total

FY2023

FY2022
Actual% of Change

Previous
Forecasut

Net Sales

138,877

129,525+9,352+7.2%

139,113- 236- 0.2%

Operating
Profit

9,421

5,000

+4,421+88.4%

8,960

+461

+5.1%

Net Sales
Operating
Profit40,43137,926+2,505+6.6%

40,481- 50- 0.1%

3,461

2,741

+720

+26.3%

3,239

+222

+6.9%

Net Sales

179,308

167,451+11,857+7.1%

179,594- 286- 0.2%

Operating
Profit12,882

7,741+5,141+66.4%

12,199

+683

+5.6%

Net Sales

19,743

17,250+2,493+14.5%

19,358

+385

+2.0%

Operating
Profit- 407- 1,090

+683

- 300

- 107

Net Sales

189,211

176,072+13,139+7.5%

188,800

+411

+0.2%

Operating
Profit11,0225,214+5,808+111.4%10,000+1,022+10.2%

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.

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ChangeChange% of Change

04
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Financial Situation© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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FY2023 1H : EBITDA, Net Assets, Shareholder's Equity Ratio,
Current Ratio◼ EBITDA increased to 7.4 billion yen, up 4.6 billion yen YoY.
◼ Net assets decreased by 5.0 billion yen from the end of the previous fiscal year due to thedecrease in minority interests.
◼ The shareholder's equity ratio was 46.5%, down 0.5 points from the end of the previous

fiscal year.
◼ The current ratio remained above 100%. It was 15 points lower from the end of the previous

fiscal year due to an increase in borrowings.
##
億円▍Shareholders’ Equity Ratio▍EBITDA億円
FY2023
1H

FY2022
1H

7,390

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億円

2,838

Change+4,552% of Change+160.4%▍Net Assets

46.5%

47.0%

Change- 0.5%▍Current Ratio

End-FY2023
1H

End-FY2022

80,02985,073

Change-5,044% of Change- 5.9%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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End-FY2023
End-FY2022
1H

End-FY2023
End-FY2022
1H

102.2%

117.2%

Change- 15.0%FY2023 1H : Cash Flows, Capital Expenditures,
Depreciation and Amortization▍Cash flows

##
●●
##
◼ Cash flows provided by operating activities amounted to億円
1.1 billion yen mainly
due to an
億円
億円
increase in profit before income taxes and an increase in inventories.
◼ Cash flows used in investing activities amounted to 1.9 billion yen mainly due to theacquisition of investment securities.
◼ Cash flows used in financing activities amounted to 1.0 billion yen mainly due to increase(decrease) in borrowings and the payment of dividends.

▍Capital Expenditures◼ Capital expenditures were 1.6 billion

yen, down 0.3 billion yen YoY.
◼ Carefully select investments such as

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those related to DX and OMO tomake efficient investments.

Capex▍Depreciation and Amortization◼ Depreciation and Amortization were

2.0 billion yen, down 0.3 billion yen
YoY.

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FY20231H## 1,641
億円

FY2023
1H

Depreciation
andAmortization

1,957

FY2022

1,918

FY2022

2,243

Change- 277

Change- 286% of Change- 14.4%% of Change- 12.8%

05
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Initiative for Human CapitalManagement© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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Initiative for Human Capital Management◼ Commitment to Diversity“Introduction of the Mentor System” topromote empowerment of female employees
In order to nurture female senior
management candidates, certain
executive officers (mentors) assist female
managers (mentees) in solving careerdevelopment issues and overcoming
problems through interactive dialogue
and support their personal growth.

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Initiative to promote understanding of
LGBTQ(Onward Corporate Design)

Onward Corporate Design Co., Ltd. holds
LGBTQ seminars each for all employees
and managers. They established acontact accessible for LGBTQ minorities.

© Copyright
21 2007-2015 ONWARD HOLDINGS CO.,LTD.

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Initiative for Human Capital Management◼ Work Style Design
Promotion of childcare leave by
male employees

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The Company held Pre-Dad/Mom
Seminars and individual interviews to
encourage male employees to takechildcare leave.
In FY2023, of male employees, whotook child care leave, two took longterm leave of 10 months to 1 year.

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

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Work interval system
In September 2022, the Company
introduced the ”Work Interval System”
which ensures 11 hours between the finish
time the previous day and the start time
the next day. Ensuring that employees
take an adequate rest and sleep, we aim
to help them improve their workstyles
while achieving work-life balance.

06
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Initiative for Sustainable
Management© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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Initiative for Sustainable Management◼ Expansion of Onward Green
Campaign◼ Launched “Upcycle Action” forcollected clothing

The Onward Green Campaign aims toestablish an apparel circulation system byrecycling and reusing used apparel items .
In the first half of FY2023, the number ofapparel items collected increased 23%
YoY. About 7.3 million items have beencollected so far.

The Company started Upcycle Action to create
new value by making use of collected clothing
items.
It proposes a new circular economy throughexhibitions and sales events.

Copyright © ONWARD HOLDINGS CO., LTD.

Collected clothing items are recycled into blankets and donated© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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Initiative for Sustainable Management◼ Expansion of Made-to-Order
Production◼ Utilization of Recycled Materials

For the core men’s brand “Gotairiku,” theproportion of made-to-order suits in thesales of suits is now 80%, up from 32% in
FY2019, contributing to the reduction of
unnecessary inventory.

The knit shoe brand “steppi” is produced byusing recycled materials from used plastic
bottles and plastic waste. A dedicatedshopper, which serves as a laundry net for
steppi, is also made of sustainable
materials.

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25

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

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07
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TOPICS© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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Commitment to Further Growth of NIJYUSANKU,
Celebrating Its 30th Anniversary◼ Launch of a new brand “estèta”

NIJYUSANKU chose actress Anne as its
brand ambassador to celebrate the 30th
anniversary of its launch. The branddevelops various sale promotional
activities on a global scale.

"estèta," a new high-grade line debuted.
We produce this brand mainly in garment
factories in Japan by taking advantage ofour material procurement capabilities andproduction networks.

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Strengthening sales promotion© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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Strengthening Corporate Business
On September 1, 2023, Onward Trading Co., Ltd. and Onward Creative Center Co., Ltd.
merged to form a new company, Onward Corporate Design Co., Ltd., as a core businesscompany responsible for corporate business.
It combines the extensive know-how in the uniform business and others and strong customer
base of former Onward Trading and the apparel-based spatial design capabilities of former
Onward Creative Center to provide comprehensive designs for clients.
Space Create Business : for Kurashiki Coffee Co., Ltd.

Uniform Business : The first uniform of ANA Holdings Inc.’s newinternational brand “Air Japan”

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Sales promotion business : for FANCL CORPORATION© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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Support of the Japan National Team in the Rugby World Cap
France 2023
◼ Onward Personal Style Co., Ltd. signed an official supporter agreement with the Japan Rugby
Football Union to support the 2023 Japan National Rugby Team.

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Through the made-to-order brand “KASHIYAMA”, we provide original model suits to all playersof the Japan National Rugby Team.

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

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08
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Appendix© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

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OMO Service “Click & Try”
Multi-Brand Store “ONWARD CROSSET / SELECT”◼ “Click & Try” Service• The number of stores introduced increased to 360, up 50 from the end of the same period last year.
• In the first half of FY2023, net sales at (existing) stores providing this service were 13% higher thanthose in FY2019, which was before the COVID-19 pandemic, and 22 pp higher than those at the stores
not providing the service, which was 9% lower than in FY2019.
◼ ONWARD CROSSET / SELECT• In addition to “Click & Try,” the Company expanded the development of “ONWARD CROSSET /SELECT” (OCS), a multi-brand store.
• With OMO services implemented, it provides a comprehensive selection of Onward Kashiyama brands.
The year-on-year growth in sales for the first half of FY2023 was 21pp higher than the stores excluding
OCS.

Copyright © ONWARD HOLDINGS CO., LTD.

▍Changes in the number of stores that introduced
Click & Try and the number of reservations
FY2023

FY2022

1H

1H

ChangeFY2023 1H% of Change

Number of Stores

360

310

+50

-

Adoption rate

51%

38%

+13%

-

Number of reservations(in thousands)

58

29

72

+29

千点
▍Comparison of net sales between stores that

2 times

Department
Stores

Shopping
Centers

ONWARD CROSSET SELECT(OCS)

132%

139%

134%

Existing Stores Total excl. OCS

116%

106%

113%

Difference+16% pt+33% pt+21% pt

Total

Comparison excluding
discontinued brands

introduced and have not introduced Click & Try
Vs. FY2019 1H

FY2023

FY2022

1H

1HStores that introduced
the service

113%

96%

Stores that have notintroduced the service

91%

75%

© Copyright 2007-2015
HOLDINGS
CO.,LTD.
Effect ONWARD +22%
pt
+21%
pt

31

▍ONWARD CROSSET / SELECT sales comparison

AEON MALL Sapporo Hassamu

FY2023 1H : Net Sales by Channel◼ Net sales at physical stores total (department stores + shopping centers and others)
increased by 11% YoY.
◼ E-commerce sales increased by 8% YoY. The e-commerce ratio and the directly
managed e-commerce ratio remained at a high level at 30% and 86%, respectively.

②Eight Domestic Subsidiaries
Using E-Commerce*①Onward Kashiyama
Net Sales% of Sales% of Sales

YoY

Net Sales% of Sales

YoY

19,911

38.6%+10.9%

4,894

19.5%

- 0.8%

24,805

32.4%

+8.4%

Shopping Centers and Other

17,171

33.3%+15.3%

12,090

48.2%

+8.7%

29,261

38.2%+12.5%

37,082

71.9%+12.9%

16,984

67.7%

+5.8%

54,06670.5%+10.6%

12,670

24.6%

+9.6%

6,808

27.1%

+4.5%

19,478

25.4%

+7.8%

Directly Managed E-Commerce
Directly Managed E-Commerce Ratio

87.5%

83.9%

86.2%

1,814

3.5%

+9.7%

1,305

5.2%

+5.0%

3,119

4.1%

+7.7%

E-Commerce Total

14,484

28.1%

+9.6%

8,113

32.3%

+4.5%

22,597

29.5%

+7.7%

Total Sales

51,566100.0%+12.0%

25,097100.0%+5.4%

76,663100.0%+9.7%

Other E-Commerce Platforms

Copyright © ONWARD HOLDINGS CO., LTD.

Net Sales

Department Stores

Physical Stores Total*Note: Total of eight domestic subsidiaries using e-commerce(Island, Tiaclasse, Onward Personal Style, Chacott, Creative Yoko, Yamato, Intimates, KOKOBUY)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

32

YoY

Total（①+②）

Brand Business
Nijyusanku 【Onward Kashiyama】
Onward Kashiyama’s core brand“Nijyusanku” continued its strong sales
growth. It enhanced sales promotion
celebrating the 30th anniversary of thebrand’s debut and introduced a new
high-grade line “estèta.”1H SalesCopyright © ONWARD HOLDINGS CO., LTD.

(YoY)

+

20.3%

It continued to expand due to thedevelopment of highly profitable andunique products and the effects ofdigital promotion such as the
distribution of advertising videos forthe hit product “Jog Pants.” The
number of OMO stores dealing inthis brand also increased.
1H Sales

1.7 x

(YoY)

KASHIYAMA 【 Onward Personal Style 】

PET PARADISE 【Creative Yoko】

Sales at directly managed storesincreased significantly. The Kichijoji
store, revamped as one of the largest
stores in Tokyo in April 2023, performed
well. Customers increased, and thecustomer unit price also increased.
Businesses for corporate clients also
contributed to a sales increase bywinning deals for company uniforms.

Thanks to the success of opening
new stores, all three stores that
opened in 2023 performed better
than planned. In addition, new hit
products such as carts, leashes,and heat-protection goods
contributed to the increase insales.

1H Sales
(YoY)

+

19.2%

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

33

UNFILO 【Onward Kashiyama】

1H Sales
(YoY)

+

15.9%

FY2023 1H : Operating Profit Change Analysis (YoY)

Change due to gross profit(Billion yen)

+0.9
+0.5
+1.0

+0.4

+0.8

50
5.0

-2.0

+3.3
Change due to SG&A expenses

20

Copyright © ONWARD HOLDINGS CO., LTD.

0.2
2 FY2022 1H
r operatingo profitfitIncrease ingross profit
due toincreasedsales forOnwardKashiyama

Increase ingross profit
due toimprovedgross profit
margin for
OnwardKashiyama

Increase ingross profit
due toincreasedsales forotherdomestic
businesses© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

34

Increase ingross profit
due toimprovedgross profit
margin forotherdomestic
businesses

Increase ingross profit
for overseas
businesses

Decrease inoperatingprofit due toincrease instore rent andother saleslinked
expenses

Increase inoperatingprofit due todecrease in
fixed
expenses

FY2023 1H
operatingprofitFY2023 1H : Results by Company
1H Results
FY20231

2

3

Onward Kashiyama+HD

Net Sales
Operating Profit

OnwardNet Sales

Corporate Design

Operating Profit

IslandNet Sales
Operating Profit

5

6

Domestic Apparel Total

Chacott

7

Yamato9

Domestic Lifestyle Total

Copyright © ONWARD HOLDINGS CO., LTD.

11

12

13

EuropeAmericaAsia

15

Overseas Subtotal

Consolidated Total

46,055+5,511+12.0%

51,419

+147

+0.3%

3,210

332

+2,878+866.9%

2,401

+809

+33.7%

7,353

6,865

+488

+7.1%

7,228

+125

+1.7%

822

523

+299

+57.2%

750

+72

+9.6%

2,844

2,970

- 126

-4.2%

2,947

- 103

- 3.5%

- 23

22

- 45

34

- 57

+6,205+10.4%

65,922- 13- 0.0%+3,484+719.8%

3,279

+689

+21.0%Net Sales

5,059

4,714

+345

+7.3%

4,976

+83

+1.7%

565

342

+223

+65.2%

530

+35

+6.6%

2,969

2,562

+407

+15.9%

2,933

+36

+1.2%

235

108

+127

+117.6%184+51+27.7%

10,592

10,106

+486

+4.8%

10,837- 245- 2.3%Net Sales

Net Sales

Net Sales

999

703

+296

+42.1%

1,018

- 19

- 1.9%

20,402

19,155+1,247+6.5%

20,557- 155- 0.8%

2,022

1,484

+538

+36.3%

1,968

+54

+2.7%

86,311

78,859+7,452+9.4%

86,479- 168- 0.2%

Operating Profit

5,990

1,968

+4,022+204.4%

5,247

+743

+14.2%Net Sales

4,832

4,244

+588

+13.9%

4,637

+195

+4.2%

Operating Profit

- 449

- 514

+65

- 462

+13

936

759

+177

880

+56

Operating Profit

- 231

- 407

+176

- 271

+40

Net Sales

3,234

2,730

+504

3,096

+138

+4.5%

40

- 211

+251

5

+35

+700.0%

8,613

+389

+4.5%

- 728

+88

Net Sales

Net Sales+23.3%+18.5%

9,002

7,733

+1,269Operating Profit- 640- 1,132+492

90,411

82,166+8,245+10.0%

90,000

+411

+0.5%

5,022

193

+4,829+2502.1%

4,000+1,022+25.6%Net Sales
Operating Profit+16.4%+6.4%

Net Sales

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.

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

35% of Change

484

Operating Profit

14

Change59,704

Operating Profit

Domestic Subtotal

Previous
Forecasut

3,968

Operating Profit

10% of Change

65,909Operating Profit

8

51,566

ChangeOperating Profit

Net Sales

Operating Profit

Creative Yoko

FY2022

FY2023 Full-Year : Performance Forecasts by Company
Full-Year Forecast
FY2022
ActualFY2023
1

Onward Kashiyama+HD

Net Sales
Operating Profit

2

3

6

+6,855+6.8%

107,858

+106

+0.1%

4,524

+3,277+72.4%

6,887

+914

+13.3%Net Sales

16,205

14,503+1,702+11.7%

16,279- 74- 0.5%

Corporate Design

Operating Profit

1,527

1,007

+520

+51.6%

1,386

+141

+10.2%

IslandNet Sales

6,235

6,285

- 50

- 0.8%

6,341

- 106

- 1.7%

35

80

- 45

- 56.3%

152

- 117

- 77.0%

Domestic Apparel Total

Chacott

138,877

129,525+9,352+7.2%

139,113- 236- 0.2%

Operating Profit

9,421

5,000

+4,421+88.4%

8,960

+461

+5.1%

Net Sales

9,573

8,849

+724

+8.2%

9,473

+100

+1.1%

631

342

+289

+84.5%

573+58+10.1%

6,307

5,801

+506

+8.7%

6,246

+61

+1.0%

582

419

+163

+38.9%

545

+37

+6.8%

21,593

20,629

+964

+4.7%

21,836- 243- 1.1%

1,806

1,489

+317

+21.3%

1,827

- 21

- 1.1%

40,43137,926+2,505+6.6%

40,481- 50- 0.1%

3,461

2,741

+720

+26.3%

3,239

+222

+6.9%

Net Sales

Creative Yoko

Net Sales

YamatoNet Sales

Domestic Lifestyle Total

Net Sales
Operating Profit

10

11

Domestic Subtotal

Europe179,308

167,451+11,857+7.1%

179,594- 286- 0.2%

Operating Profit

12,882

7,741+5,141+66.4%

12,199

+683

+5.6%

Net Sales

10,9659,960+1,005+10.1%

10,694

+271

+2.5%

69

- 136

+205

108

- 39

- 36.1%Net Sales

1,966

1,636

+330

1,615

+351

+21.7%

Operating Profit

- 416

- 576

+160

- 302

- 114

Net Sales

6,812

5,654

+1,158

7,049

- 237

- 60

- 378

+318

- 106

+46

19,743

17,250+2,493

19,358

+385

- 407

- 1,090

+683

- 300

- 107

189,211

176,072+13,139+7.5%

188,800

+411

+0.2%

11,0225,214+5,808+111.4%10,000+1,022+10.2%Net Sales

Operating Profit

Copyright © ONWARD HOLDINGS CO., LTD.

12

13

America

Asia

Operating Profit

14

Overseas Subtotal

Net Sales
Operating Profit

15

Consolidated Total

Net Sales
Operating Profit+20.2%+20.5%+14.5%

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.
Onward Corporate Design's previous year figures (2H) include Onward Creative Center's results in addition to Onward Trading results.

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

36% of Change

OnwardOperating Profit

9

Change101,109

Operating Profit

8

Previous
Forecasut

7,801

Operating Profit

7% of Change

107,964

Operating Profit

5

Change- 3.4%+2.0%

FY2023 1H : SG&A Expenses / Items that Affect Net Profit

1
2

Presonnel
Rent

FY2023 1H

FY2022 1H

YoY(% of Change)

18,103

18,276- 0.9%

12,201

11,563+5.5%

3Transportation

3,162

3,083

+2.6%

4

Promotion andAdvertising

2,935

1,844

+59.2%

5

Depreciation

1,565

1,870

- 16.3%

6

Other

8,164

7,906

+3.3%

7

Total SG&A
Expenses

46,13044,542+3.6%[Items that Affect Net Profit]

Copyright © ONWARD HOLDINGS CO., LTD.

Non-operating profit from interest income, dividends
income, etc., was 0.3 billion yen.
◼
Non-operating expenses due to foreign exchange
losses, interest expenses, etc. were 0.9 billion yen.
◼
Extraordinary profit due to sales of investment
securities was 0.4 billion yen.
◼
Extraordinary loss was 0.4 billion yen due toimpairment loss, etc.
◼
The income tax ratio decreased because taxable
income is expected to increase in the future due tobetter performance and deferred tax assets wererecorded.
◼
As a result, net profit was 2.9 billion yen.
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

37

FY2022 1H

YoY(% of Change)

8

Operating Profit

5,022

193

+2502.1%

9

Non-Operating Profit

317

1,116

- 71.6%

10

Interest income

150

119

11

Foreign exchange gains

12

Other

166

287

13

Non-Operating Loss

927

655
131

708

14

Interest expenses

269

15

Foreign exchange loss

473

16
17

Share of loss of entities
accounted for using equity
Other

183

489

-609

461

Total Non-Operating Profit/Loss

19

Recurring Profit

4,412

654

20

Extraordinary Profit

362

1,455

362

120

21

23

Gain on sales of investment
securities
Gain on sales of shares ofsubsidiaries and associates
Other

28

Extraordinary Loss

385

485

25

Impairment loss

242

470

26

Other

142

15

-23

970

27

Extraordinary Profit/Loss

28

Profit Before Income Taxes

4,390

1,624

29

Income Taxes - Current

1,382

1,342

30

Prof it (loss) attributable to noncontrolling interests

144

-194

2,862

476

Net Profit+574.6%

1,306

24

31

+41.5%

34

18

22

◼

FY2023 1H+170.3%+501.2%

FY2023 1H : Consolidated Balance Sheet(Billion yen)

1
2

Current Assets

End-FY2022

160.7

159.1

+1.6

64.1

62.2

+1.9

Cash and Deposits

12.3

13.8

-1.5

4

Accounts
Receivable-trade

12.3

13.9

-1.6

5

Inventory

34.9

30.7

+4.2

6

Non-current Assets

96.5

96.9

-0.4

7

Property, Plant andEquipment

53.5

53.1

+0.4

8

Intangible Assets

8.7

9.1

-0.4

9

Investments andOther Assets

34.2

34.7

-0.5

80.7

74.1

+6.6

Total Liabilities

11

Accounts Payabletrade

21.1

21.4

-0.3

12

Borrowings

35.5

27.2

+8.3

13

Other

24.0

25.5

-1.5

80.0

85.0

-5.0

14

Total Net Assets

15

Shareholders' Equity
Ratio

46.5%

47.0%

-0.5%

16

Current Ratio

102.2%

117.2%-15.0%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

38

Change3

10

Copyright © ONWARD HOLDINGS CO., LTD.

Total Assets

End-FY2023 1H

Reasins for change

Increase due to active purchase for sales expansion

Increase due to new borrowings

Decrease in minority interests

FY2023 : 1H Results / Full-Year Forecasts by Group
1H Results
FY2023+ HD

Onward Kashiyama
Domestic Subtotal(Excl.Onward Kashiyama + HD)

Overseas Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022Net Sales

2Gross Profit（% of Net Sales）
SG&A Expenses

28,03526,826（% of Net Sales）(54.4%)(58.2%)

Operating Profit

3,210

332

（% of Net Sales）(6.2%)(0.7%)

1

Net Sales

34,74532,8042

Gross Profit

17,626

16,156（% of Net Sales）(50.7%)(49.3%)

SG&A Expenses

14,846

14,520（% of Net Sales）(42.7%)(44.3%)

43
4

27,158+4,087+15.0%(59.0%)(+1.6%)+4.5%

57,16855,544(- 3.9%)(53.0%)(54.9%)+866.9%

7,801

4,524

(+5.5%)(7.2%)(4.5%)+1,941+5.9%

71,344

66,342+5,002+7.5%+1,470+9.1%

35,85832,516+3,342+10.3%(+1.5%)(50.3%)(49.0%)+2.2%

30,77729,299(- 1.5%)(43.1%)(44.2%)

2,780

1,636
(5.0%)

1

Net Sales

9,002

7,733

2

Gross Profit

4,047

3,161

(45.0%)(40.9%)

SG&A Expenses

4,687

4,293

（% of Net Sales）(52.1%)(55.5%)

Operating Profit- 640- 1,132--（% of Net Sales）+2,878+326+1,144

101,109+6,85564,96960,068+4,901(60.2%)(59.4%)% of Change

31,245+1,209107,964

Change(60.6%)(8.0%)

4

FY2022+12.0%（% of Net Sales）

3

FY2023+5,511

Operating Profit（% of Net Sales）% of Change

46,055© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

39

Change1

351,566Full-Year Forecast

+6.8%
+8.2%
(+0.8%)+1,624+2.9%(- 2.0%)+3,277+72.4%(+2.8%)(+1.2%)+1,478+5.0%(- 1.0%)+69.9%

5,081

3,217

(+3.0%)(7.1%)(4.8%)+1,269+16.4%

19,743

17,250+2,493+14.5%+886+28.0%

9,147

7,552

+1,595+21.1%(+4.1%)(46.3%)(43.8%)

+394

+9.2%

9,554

8,642

(- 3.4%)(48.4%)(50.1%)- 407- 1,090

-

-

+492
-

+1,864+57.9%(+2.3%)(+2.6%)+912+10.6%(- 1.7%)+683-

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.

40