FY02/24 (FY2023) Q3

Results Presentation Material

January 11, 2024
© 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 Q3 Consolidated Financial Results
03 FY2023 Full Year Consolidated Performance Forecast
04 Financial Situation
05 TOPICS
06 Appendix© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

33

4
8
11
14
17
22

01
Copyright © ONWARD HOLDINGS CO., LTD.

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

44

FY2023 Q3 : Consolidated Financial Results Highlights
Net Sales

Q3(Sep-Nov)

CumulativeQ3

Copyright © ONWARD HOLDINGS CO., LTD.

(Mar-Nov)

51.0

bn yen

+5.7% YoY
+2.7 bn yen YoY

141.4

bn yen

+8.4％ YoY
+11.0 bn yen YoY

Recurring Profit

Net Profit

4.7

4.6

2.9

bn yen+13.5％ YoY+0.6 bn yen YoY

9.7

bn yen2.2 x YoY
+5.4 bn yen YoY

bn yen+14.8％ YoY+0.6 bn yen YoY

9.1

bn yen1.9 x YoY
+4.4 bn yen YoY

bn yen+28.3％ YoY+0.6 bn yen YoY

5.7

bn yen2.1 x YoY
+3.0 bn yen YoY➢

In the Q3 of the year (September–November), temperatures remained higher than in usual years,
which caused a drastic change to customers’ purchasing behavior. Sales in key brand businesses
such as Nijyusanku, UNFILO, PET PARADISE, and Chacott remained strong mainly due to thesuccessful development of flexible product merchandising in response to such situation, and afurther improvement in the operation of OMO stores that had offered the “Click & Try” service.

➢

In addition, operating profit margin for the Q3 of the year rose by 0.7%pt from the same period of theprevious year (8.5% to 9.2%) due in large part to the achievements of global business reforms andprogress in streamlining the product supply chain.

➢

Thanks to the above, the Company was able to increase sales and all kinds of profits in the Q3 ofthe year. As a result of the above, during the first nine months of the fiscal year (March to
November), the Company achieved significant increases in sales and all kinds of profits.

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

5

Operating Profit

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

5.9

bn yen1.9 x YoY
+2.9 bn yen YoY

Copyright © ONWARD HOLDINGS CO., LTD.

➢ The full-year forecasts have remained unchanged from the latest ones fornet sales, operating profit and recurring profit as the performance in firstnine months has progressed as expected.
➢ The full-year forecast for net profit has been revised upward from thelatest forecast (5.5 billion yen) to 5.9 billion yen. The reason is that
because future taxable income is expected to increase resulting fromthe continued strong performance, tax expense will decrease due tothe recording of deferred tax assets.

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

6

Shareholder Returns▍Dividend Policy

The Company regards the return of profits to shareholders as one of its
most important management issues, and its dividend policy is to maintainthe dividend payout ratio of at least 35% and to distribute profits in a stable,
performance-linked, and appropriate manner.
Along with the further upward revision of the full-year forecast for net profit,
the Company revised the year-end dividend forecast (scheduled for May2024) to 18 yen per share, up 1 yen from the previous forecast (announcedin October 2023).
(An increase of 6 yen from the 12 yen of FY2022)▍Dividends

Copyright © ONWARD HOLDINGS CO., LTD.

FY2023
Revised Forecast

Forecast（October 2023）（July 2023）

Initial Forecast(April 2023)

FY2022
ActualDividends per Share (yen)

18

17

16

14

12

Total Dividens (mil. yen)

2,443

2,307

2,171

1,900

1,628

Net Profit (mil. yen)

5,911

5,462

5,000

4,000

3,061

Payout Ratio

41.3%

42.2%

43.4%

47.5%

53.2%

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

7

Previous Forecast

02
Copyright © ONWARD HOLDINGS CO., LTD.

FY2023 Q3 Consolidated
Financial Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

88

FY2023 Q3: Consolidated Financial Results◼ Net sales were up 5.7% YoY in Q3 and up 8.4% YoY in the first nine months.
◼ Operating profit was up 13.5% YoY in Q3 and 2.2 times YoY in the first nine months.
◼ Net profit was up 28.3% YoY in Q3 and 2.1 times YoY in the first nine months.
◼ EBITDA was up 9.0% YoY in Q3 and 1.6 times YoY in the first nine months.
Q3 Results（Million yen）

FY2022% of Change

FY2023

FY2022

Change% of Change

Net Sales

50,972

48,231+2,741+5.7%

141,383

130,397+10,986+8.4%

2Gross Profit

29,122

27,890+1,232+4.4%

80,274

72,625+7,649+10.5%（% of Net Sales）(57.1%)(57.8%)(- 0.7%)(56.8%)(55.7%)

SG&A Expanses

24,44423,768+2.8%

70,57468,310（% of Net Sales）(48.0%)(49.3%)(- 1.3%)(49.9%)(52.4%)

Operating Profit

4,678

4,122

+13.5%

9,700

4,315

（% of Net Sales）(9.2%)(8.5%)(+0.7%)(6.9%)(3.3%)

Recurring Profit

4,643

4,044

+14.8%

9,055

4,698

（% of Net Sales）(9.1%)(8.4%)(+0.7%)(6.4%)(3.6%)Net Profit

2,884

2,247

+28.3%

5,746

2,723

（% of Net Sales）(5.7%)(4.7%)(+1.0%)(4.1%)(2.1%)EBITDA※

5,892

5,406

+9.0%

13,282

8,244(11.6%)(11.2%)(+0.4%)(9.4%)(6.3%)

4

5

6

7（% of Net Sales）

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

9Change1

3

Copyright © ONWARD HOLDINGS CO., LTD.

FY2023Cumulative Q3 Results

+676
+556

+599

+637

+486

(+1.1%)+2,264+3.3%(- 2.5%)+5,385+124.8%(+3.6%)+4,357+92.7%(+2.8%)+3,023+111.0%(+2.0%)+5,038+61.1%(+3.1%)

FY2023 Q3: Results by Segment◼ In the domestic business, both the apparel and lifestyle segments saw higher sales andprofit. The domestic apparel business continued performing well into Q3 with stronger
sales and a double-digit profit increase.
◼ The overseas business posted a sales increase both in Q3 and the first nine months. Its
operating profit (loss) improved by 0.1 billion yen in Q3 and 0.6 billion yen in the first ninemonths although an operating loss remained.

Q3 Rrsults（Million yen）

1

2

Copyright © ONWARD HOLDINGS CO., LTD.

3

4

5

ApparelLifestyleDomestic Total

OverseasTotal

Consolidated Total

FY2023

FY2022

Change% of Change

FY2023

FY2022

Change% of Change

Net Sales

38,03036,247+1,783+4.9%

103,939

95,951+7,988+8.3%

Operating
Profit

4,035

3,583

+452

+12.6%

8,003

4,067

+3,936+96.8%Net Sales

9,736

9,497

+239

+2.5%

30,13828,652+1,486+5.2%

Operating
Profit

987

951

+36

+3.8%

3,009

2,435

+574

+23.6%Net Sales

47,76645,744+2,022+4.4%

134,077

124,603+9,474+7.6%

Operating
Profit

5,022

4,534

+488

+10.8%

11,012

6,502+4,510+69.4%Net Sales

5,628

4,701

+927

+19.7%

14,63012,434+2,196+17.7%

Operating
Profit

- 31

- 143

+112

- 671

- 1,275+604

Net Sales

50,972

48,231+2,741+5.7%

141,383

130,397+10,986+8.4%

Operating
Profit

4,678

4,122

+556

+13.5%

9,700

4,315

+5,385+124.8%

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

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

10

Cumulative Q3 Results

03
Copyright © ONWARD HOLDINGS CO., LTD.

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

11
11

FY2023 Full-Year : Consolidated Performance Forecast◼ The Company revised the full-year forecast for net profit upward to 5.9 billion yen due to lower tax
expenses.
◼ The forecasts for net sales, operating profit and recurring profit remain unchanged from the latest forecast
as performance in the first nine months has progressed as planned.

◼ Net sales are expected to be 189.2 billion yen (+7.5%), up 13.1 billion yen, operating profit is forecast tocome in at 11 billion yen (2.1 times), up 5.8 billion yen, and net profit is expected to be 5.9 billion yen (1.9
times), up 2.9 billion yen from the previous fiscal year.
Full-Year Forecast+13,139+7.5%

189,211+0+0.0%+9,201+9.5%

105,952+0+0.0%(+1.1%)(56.0%)+3.7%

94,930(- 1.8%)(50.2%)+111.4%

11,022(+2.8%)(5.8%)+88.2%

10,012(+2.3%)(5.3%)+93.1%

5,462(+1.4%)(2.9%)+55.2%

16,100(+2.6%)(8.5%)FY2022

Change1

Net Sales

189,211

176,0722

Gross Profit

105,952

96,751（% of Net Sales）(56.0%)(54.9%)

SG&A Expanses

94,93091,537（% of Net Sales）(50.2%)(52.0%)

Operating Profit

11,022

5,214（% of Net Sales）(5.8%)(3.0%)

Recurring Profit

10,0125,319（% of Net Sales）(5.3%)(3.0%)Net Profit

5,911

3,061

（% of Net Sales）(3.1%)(1.7%)EBITDA

16,10010,373（% of Net Sales）(8.5%)(5.9%)

4
Copyright © ONWARD HOLDINGS CO., LTD.

Previous
Forecast

FY2023

3

5

6

7

※

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

12% of Change（Million yen）

*Note: EBITDA = operating profit + depreciation and amortization.

+3,393+5,808+4,693+2,850+5,727

Change% of Change

0.0%

+0

+0.0%
(+0.0%)+0+0.0%(+0.0%)+0+0.0%(+0.0%)

+449

+8.2%
(+0.2%)

+0

+0.0%
0

FY2023 Full-Year : Performance Forecasts by Segment◼ In the domestic business, in the apparel segment, net sales are expected to increase by 10.2 billion yen(+7.8%) and operating profit by 4.8 billion yen (1.9 times) from the previous fiscal year. In the lifestylesegment, net sales are expected to increase by 1.7 billion yen (+4.5%) and operating profit by 0.6 billion
yen (+23.1%) from the previous fiscal year.
◼ In the overseas business, net sales are expected to increase by 3.1 billion yen (+18.0%). Although an
operating loss will remain, operating profit/loss is expected to improve by 0.8 billion yen.

Full-Year Forecast（Million yen）

1

2

Copyright © ONWARD HOLDINGS CO., LTD.

3

4

5

ApparelLifestyleDomestic Total

OverseasTotal

Consolidated Total

FY2022

ChangeNet Sales

139,692

129,525+10,167+7.8%

138,877

+815

+0.6%

Operating
Profit

9,753

5,000

+4,753+95.1%

9,421

+332

+3.5%

Net Sales

39,63337,926+1,707+4.5%

40,431-798- 2.0%

Operating
Profit

3,374

2,741

+633

+23.1%

3,461-87- 2.5%Net Sales

179,325

167,451+11,874+7.1%

179,308

+17

+0.0%

Operating
Profit13,127

7,741+5,386+69.6%

12,882

+245

+1.9%

Net Sales

20,34817,250+3,098+18.0%

19,743

+605

+3.1%

Operating
Profit- 315-1,090

+775

-407

+92

Net Sales

189,211

176,072+13,139+7.5%

189,211+0+0.0%

Operating
Profit11,0225,214+5,808+111.4%

11,022+0+0.0%% of Change

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

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

13

Previous
Forecast

FY2023

Change% of Change

04
Copyright © ONWARD HOLDINGS CO., LTD.

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

14
14

FY2023 Cumulative Q3 : EBITDA, Net Assets,
Shareholder‘s Equity Ratio, Current Ratio◼ EBITDA increased to 13.3 billion yen, up 5.0 billion yen YoY.
◼ Net assets decreased by 2.4 billion yen from the end of the previous fiscal year due to thedecrease in minority interests.
◼ The shareholders’ equity ratio remained at about 45%, although it declined due to anincrease in borrowings.
◼ The current ratio decreased 8.8%pt from the end of the previous fiscal year due to atemporary increase in short-term borrowings.

▍EBITDA（Million yen）

FY2023
FY2022
Cumulative Q3 Cumulative Q3

Copyright © ONWARD HOLDINGS CO., LTD.

13,282

8,244

Change+5,038+61.1%

End-FY2023
Q3

44.9%

End-FY2022

47.0%

Change- 2.1%pt▍Current Ratio▍Net Assets（Million yen）

End-FY2023
Q3

82,719End-FY2022

85,073

Change-2,354© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

15% of Change▍Shareholders’ Equity Ratio% of Change- 2.8%

End-FY2023
Q3

108.4%

End-FY2022

117.2%

Change- 8.8%pt

FY2023 Cumulative Q3 : Cash Flows,
Capital Expenditures, Depreciation and Amortization▍Cash Flows##●●◼ Cash flows provided by operating activities amounted 億円
to 0.4 billion yen mainly
due to##億円
億円
higher profit before income taxes and an increase in inventories.
◼ Cash flows used in investing activities amounted to 3.5 billion yen mainly due to theacquisition of investment securities.
◼ Cash flows provided by financing activities came to 1.3 billion yen mainly due to anincrease in borrowings and the payment of dividends.

▍Capital Expenditures◼ Capital expenditures were 3.5 billion
yen, down 0.6 billion yen YoY.

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Carefully select investments such as

FY2023
FY2022
Cumulative Q3 Cumulative Q3

3,515

4,091

Change-576% of Change- 14.1%

those related to DX and OMO tomake efficient investments.

▍Depreciation and Amortization◼ Depreciation and Amortization were
3.0 billion yen, down 0.4 billion yen
YoY.

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

16（Million yen）

（Million yen）
FY2023
FY2022
Cumulative Q3 Cumulative Q3

2,959

3,313

Change-354% of Change- 10.7%

05
Copyright © ONWARD HOLDINGS CO., LTD.

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

17
17

Trends in Main Brand Businesses

Copyright © ONWARD HOLDINGS CO., LTD.

Nijyusanku 【Onward Kashiyama】•

For Onward Kashiyama’s core brand“Nijyusanku,” sales promotion was
stepped up by the campaign tocelebrate the 30th anniversary of its
brand debut.

•

Moreover, the Company launched thehigh-grade derivative brand ”estèta”
afresh with the aim of accommodating
the diverse needs of customers.

•

During the Q3 of the year, productmeasures that addressed hightemperatures, including light and warm
jackets for in-between seasons andproposals for knit-over-knit layered
coordination, were carried out
successfully.

•“estèta” garnered support due to its“high quality and high sensitivity
strategy” and acquired new customers.

•

Net sales increased in the Q3 of theyear by 12% YoY and in the first ninemonths by 17% YoY.

Wool cashmere Aran pattern cardigan, etc.

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

18

Q3(Net Sales YoY)

+

12.3%

Padded long coats, etc.

Cumulative Q3(Net Sales YoY)

+

17.2%

Trends in Main Brand Businesses

Copyright © ONWARD HOLDINGS CO., LTD.

【 オンワード樫山】
Kashiyama】
UNFILO 【Onward•

Following the concept of “Move around.
Functional beauty for everyone,” UNFILO,
which debuted in 2021, created popular
products such as Saiai jogging pants that
employ functional materials.

•

The brand started as a D2C brand in ecommerce platforms and spread its namerecognition through running the OMO
service “Click & Try,” which allows shoppers
to backorder at physical stores, anddeveloping the brand at the multi-brandstore “ONWARD CROSSET / SELECT.”•In the Q3 of the year, linking functional
beauty products for the winter, typified byfour kinds of “WARM BEAUTY PANTS” withlayering proposals that adjusted to thetemperature, the brand drove purchases,
backed by actual demand.

•

As a result, amid sluggish growth in theentire market, “UNFILO” posted asignificant sales increase of 2.1 times YoY
in the quarter. The first nine months of theyear saw sales expansion of 1.9 times YoY.

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

19

WARM BEAUTY PANTS “Saiai jogging pants”

Fluffy knit Cardigans with faux pearl buttons

Q3(Net Sales YoY)

2.1 x

C u m u l a t i ve Q 3(Net Sales YoY)

1.9 x

Trends in Main Brand Businesses

Copyright © ONWARD HOLDINGS CO., LTD.

PET PARADISE【Creative Yoko】•

PET PARADISE, which was the main businessof Creative Yoko, successfully advanced storeopening measures in which the brand had been
actively engaged since the second half of
FY2022.

•

Stepping up the strategy for consumption frominbound tourism in FY2023, the brand carriedout new store openings in selected areas that
had attracted droves of domestic and foreign
tourists.

•

One “PET PARADISE” store each was opened
in Takeshita Street, Harajuku, at the end of
February 2023 and in Spain Zaka, Shibuya, atthe end of September, and their sales remained
very strong. A store that was opened in Komachi
Street, Kamakura, on December 8, has also
made a flying start. Net sales from inboundtourism contributed significantly to all of them.

•On the product side, new products such as thepet cart “smooca” became hits and also
contributed to the sales growth.

•

Net sales increased in Q3 of the year by 15%
YoY and in the first nine months by 19% YoY.

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

20

PET PARADISE Spain Slope, Shibuya store

smooca Neo-compact carts

Q3(Net Sales YoY)

+ 14.8%

J. PRESS Faux leather jackets

C u m u l a t i ve Q 3(Net Sales YoY)

+ 18.7%

Trends in Main Brand Businesses

Copyright © ONWARD HOLDINGS CO., LTD.

Chacott COSMETICS 【 Chacott 】•

In 2021, the brand was given a broad facelift
as “Chacott COSMETICS,” which consisted ofitems of an everyday-use version of thecosmetics that professional artists had loved
for a long time as classic ballet stage makeup.

•

As raw materials, the brand items haveadopted sustainability-conscious products thatare friendly to society and the environment inaddition to the pursuit of gentleness on the
skin.

•

In FY2023, the brand launched the new
product Double Multi Crayons and Multi Color
Variations and pulled off successful campaigns
including sales promotions to key targets andsocial media measures making better use of
influencers.

•

Sales grew 1.5 times YoY in Q3 of the year
and 33% YoY in the first nine months of theyear, driving the performance of Chacott.

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

21

Double Multi Crayons

Q3(Net Sales YoY)

1.5 x

Multi Color Variations

C u m u l a t i ve Q 3(Net Sales YoY)

+ 33.1%

06
Copyright © ONWARD HOLDINGS CO., LTD.

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

22
22

OMO Service “Click & Try”
Multi-Brand Store “ONWARD CROSSET / SELECT”◼ “Click & Try” Service
・ The number of stores offering the service increased to 388, up 58 from the end of the same period last year.
・ In the first nine months of FY2023, net sales at (existing) stores offering this service were 17% higher than those in
the same period of FY2019, which was before the COVID-19 pandemic, and 25%pt higher than those at the stores
not offering the service.

◼ 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, the store offers an assortment of Onward Kashiyama’s multiple brands across theirboundaries.
The year-on-year growth in sales for the first nine months of FY2023 was 22%pt higher than the existing storesexcluding OCS.

Copyright © ONWARD HOLDINGS CO., LTD.

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

FY2023 Q3

FY2023Q3

FY2022
Q3Change% of Change

Number of Stores

388

330

+58

-

Adoption rate

56%

42%

15%pt

-

Number of reservations(in thousands)

96

66

72+30

+45%

千点
▍Comparison of net sales between storesthatoffered and have not introduced Click & Try
FY2023Cumulative Q3

FY2022
Cumulative Q3Stores that introduced
the service

117%

100%

Stores that have notintroduced the service

92%

81%

Vs. FY2019© Copyright 2007-2015
ONWARD HOLDINGS CO.,LTD.
Effect23▍ONWARD CROSSET / SELECT sales comparison+25%pt+19%ptDepartment
Stores(YoY)

Shopping
Centers(YoY)

ONWARD CROSSET SELECT(OCS)

125%

148%

131%

Existing Stores Total excl. OCS

112%

102%

109%

Difference

13%pt

46%pt

22%pt

Total

Comparison excluding
discontinued brands

ONWARD CROSSET SELECT AEON MALL Okazaki

FY2023 Cumulative Q3: Net Sales by Channel◼ Net sales at physical stores total (department stores + shopping centers and others)
increased by 7% 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 29% and 89%, respectively.

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

Net Sales% of Sales

YoY

Net Sales% of Sales

YoY

31,874

39.1%

+6.4%

7,429

19.7%

+5.3%

39,303

33.0%

+6.2%

Shopping Centers and Other

27,12733.3%+12.3%

17,687

46.8%

+2.7%

44,814

37.6%

+8.3%

59,001

72.4%

+9.1%

25,116

66.5%

+3.5%

84,117

70.5%

+7.3%

20,515

25.2%+12.6%

10,608

28.1%

+6.3%

31,123

26.1%+10.4%

Directly Managed E-Commerce
Directly Managed E-Commerce Ratio

91.2%

83.9%

88.6%

1,968

2.4%

-22.9%

2,035

5.4%

+6.7%

4,003

3.4%

- 10.2%

E-Commerce Total

22,483

27.6%

+8.2%

12,643

33.5%

+6.4%

35,126

29.5%

+7.6%

Total Sales

81,484100.0%+8.8%

37,759100.0%+4.4%

119,243100.0%+7.4%

Other E-Commerce Platforms*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.

24

YoY

Department Stores

Physical Stores Total

Copyright © ONWARD HOLDINGS CO., LTD.

% of Sales

Total（①+②）

FY2023 Cumulative Q3 : 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, KOKOBUY)

FY2023 Cumulative Q3

E-Commerce

Department
Stores29％

33％

Shopping Centers
and Other

38％

Copyright © ONWARD HOLDINGS CO., LTD.

Changes in Onward Kashiyama’s sales breakdown by channel
FY2018FY2008
Shopping
Centers
and Other

E-Commerce

25％

百貨店

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

25

FY2023 Cumulative Q3

Shopping
Centers
and Other

20％

14％

E-Commerce
Department
Stores66％

28％

Department
Stores

Shopping 39％
Centers and
Other

33％

FY2023 Cumulative Q3 : Operating Profit Change Analysis (YoY)(Billion yen)

+1.3
+1.4
+4.0

+0.5
-2.1

+0.4

-0.1

9.7

Change due to SG&A expenses

4.3

Copyright © ONWARD HOLDINGS CO., LTD.

Change due to gross profit

FY2022
cumulative Q3
operatingprofitIncrease 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.

26

Increase ingross profit
due toimprovedgross profit
margin forotherdomestic
businesses

Increase ingross profit
for overseas
businesses

Decrease inoperatingprofit due toincrease instore rent andother saleslinked
expenses

Decrease inoperatingprofit due toincrease inpersonnel
expenses

FY2023cumulative Q3
operatingprofit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

Copyright © ONWARD HOLDINGS CO., LTD.

-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.

27

-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.

FY2023 Q3 : Results by Company
Cumulative Q3（Million yen）
1

2

3

Onward Kashiyama+HD

6

+3.8%

81,48474,870+6,614

+8.8%

+7.0%

6,781

3,668

+3,113+84.9%

OnwardNet Sales

4,464

3,867

+597

+15.4%

11,817

10,732+1,085+10.1%

Corporate Design

Operating Profit

352

203

+149

+73.4%

1,174

726

+448

+61.7%

IslandNet Sales

1,544

1,649

- 105

- 6.4%

4,388

4,619

- 231

- 5.0%- 96.5%

Domestic Apparel Total

28

120

- 92

- 76.7%

5

142

- 137

38,03036,247+1,783+4.9%

103,939

95,951+7,988+8.3%

Operating Profit

4,035

3,583

+452

+12.6%

8,003

4,067

+3,936+96.8%

Chacott

Net Sales

2,388

2,223

+165

+7.4%

7,447

6,937

+510

+7.4%

Net Sales

Creative Yoko

Net Sales

YamatoNet Sales

10

Domestic Subtotal

Net Sales

11

Europe12

AmericaAsia+20+10.1%

784

541

+243

+44.9%+160+10.6%

4,633

4,066

+567

+13.9%

221

146

+75

+51.4%

456

254

+202

+79.5%

5,195

5,330

- 135

- 2.5%

15,787

15,436

+351

+2.3%

468

495

- 27

- 5.5%

1,467

1,198

+269

+22.5%

9,736

9,497

+239

+2.5%

30,13828,652+1,486

+5.2%

951

+36

+3.8%

3,009

2,435

+574

+23.6%

45,744+2,022+4.4%

134,077

124,603+9,474+7.6%

Operating Profit

5,022

4,534

+488

+10.8%

11,012

6,502+4,510+69.4%Net Sales

3,438

2,720

+718

+26.4%

8,270

6,964

+1,306+18.8%

126

171

- 45

- 26.3%

- 323

- 343

+20

- 7.5%

1,366

1,224

+142

- 366

- 630

+264

4,994

4,246

+748

18

- 302

+320

14,63012,434+2,196- 671- 1,275

+604

430

465

- 35

Operating Profit

- 135

- 223

+88

Net Sales

1,760

1,516

+244

- 22

- 91

+69

5,628

4,701

+927

- 31

- 143

+112

50,972

48,231+2,741+5.7%

141,383

130,397+10,986

+8.4%

4,678

4,122

+556

+13.5%

9,700

4,315

+5,385+124.8%Net Sales

Net Sales
Operating Profit

Consolidated Total

199
1,504

987

Operating Profit

Overseas Subtotal

219
1,664

47,766Net Sales

Operating Profit

Net Sales
Operating Profit+16.1%+19.7%

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

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

28% of Change+235

Operating Profit

Copyright © ONWARD HOLDINGS CO., LTD.

Change+1,103

Domestic Lifestyle Total

15

FY2022

3,336

9

14

FY202328,815

Operating Profit

13% of Change

3,571Operating Profit

8

Change29,918Operating Profit

7

FY2022

Operating Profit

Net Sales

Operating Profit

5

Q3

FY2023+11.6%+17.6%+17.7%

FY2023 Full-Year : Performance Forecasts by Company
Full-Year Forecast（Million yen）
1

Onward Kashiyama+HD

Net Sales

3% of Change+7,612+7.5%

107,964

+757

+0.7%

4,524

+3,656+80.8%

7,801

+379

+4.9%

Onward16,54914,503+2,046+14.1%

16,205

+344

+2.1%

Corporate Design

Operating Profit

1,513

1,007

+506

+50.2%

1,527

- 14

- 0.9%

IslandNet Sales

5,966

6,285

- 319

- 5.1%

6,235

- 269

- 4.3%

67

80

- 13

- 16.3%35+32+91.4%

139,692

129,525+10,167+7.8%

138,877

+815

+0.6%

Operating Profit

9,753

5,000

+4,753+95.1%

9,421

+332

+3.5%

Net Sales

9,586

8,849

+737

+8.3%

9,573

+13

+0.1%

654

342

+312

+91.2%

631

+23

+3.6%

6,391

5,801

+590

+10.2%

6,307

+84

+1.3%

649

419

+230

+54.9%

582+67+11.5%

20,88920,629

+260

+1.3%

21,593- 704- 3.3%

Domestic Apparel Total

6

Chacott

Net Sales

7

Creative Yoko

8

Yamato9

Domestic Lifestyle Total

10

Domestic Subtotal

11

Europe12

America

13

Asia

Net Sales
Operating Profit
Net Sales

1,729

1,489

+240

+16.1%

1,806

- 77

- 4.3%

39,63337,926+1,707+4.5%

40,431- 798- 2.0%

Operating Profit
Net Sales

3,374

2,741

+633

+23.1%

3,461

- 87

- 2.5%

179,325

167,451+11,874+7.1%

179,308

+17

+0.0%

Operating Profit

13,127

7,741+5,386+69.6%

12,882

+245

+1.9%

Net Sales

11,4979,960+1,537+15.4%

10,965

+532

+4.9%

76

- 136

+212

69

+7

+10.1%

2,036

1,636

+400

+24.4%

1,966

+70

+3.6%

- 416

+95

+20.5%

6,812

+3

- 60

- 10

+18.0%

19,743+605

Operating Profit
Net Sales

Operating Profit

Copyright © ONWARD HOLDINGS CO., LTD.

Change101,109

Operating Profit

Net Sales
Operating Profit

- 321

- 576

+255

Net Sales

6,815

5,654

+1,161

- 70

- 378

+308

20,34817,250+3,098Operating Profit

Overseas Subtotal

Net Sales

Consolidated Total

Net Sales
Operating Profit

+0.0%

+3.1%

- 315

- 1,090

+775

- 407

+92

189,211

176,072+13,139+7.5%

189,211+0+0.0%

11,0225,214+5,808+111.4%

11,022+0+0.0%

Operating Profit

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.

29

Previous
Forecast

Net Sales

515% of Change

8,180Operating Profit

14

Change108,721

Operating Profit

2

FY2022
ActualFY2023

FY2023 Cumulative Q3 : SG&A Expenses /Items that Affect Net Profit（Million yen）

1

Presonnel

FY2023
FY2022
YoY
Cumulative Q3 Cumulative Q3 (% of Change)

26,633

26,334

+1.1%

2

Rent

19,07018,437+3.4%

3Transportation

4,826

4,647

+3.9%

4

Promotion andAdvertising

4,817

Depreciation

2,367

5

3,963
2,754

+21.5%- 14.1%

6

Other

13,043

12,175+7.1%

7

Total SG&A
Expenses

70,57468,310+3.3%[Items that Affect Net Profit]◼

Copyright © ONWARD HOLDINGS CO., LTD.

Non-operating profit from interest income, dividends
income, etc., was 0.4 billion yen.
◼
Non-operating expenses due to foreign exchange
losses, interest expenses, etc. were 1.0 billion yen.
◼
Extraordinary profit due to sales of investment
securities was 0.4 billion yen.
◼
Extraordinary loss was 0.6 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.
◼ 2007-2015
As a result,net profit
was 5.7 billion
yen.
© Copyright
ONWARDHOLDINGS
CO.,LTD.

30（Million yen）

FY2023
FY2022
YoY
Cumulative Q3 Cumulative Q3 (% of Change)

8

Operating Profit

9,700

4,315

+124.8%9

Non-Operating Profit

388

1,255

- 69.1%

10Interest income

169

127

+33.1%

11

Foreign exchange gains

788

-

12

Subsidy income

133

-

13

Other

218

205

+6.3%

14 Non-Operating Loss

1,033

873

+18.3%

234+67.5%

15

Interest expenses

392

16

Foreign exchange loss

380

17

Share of loss of entities
accounted for using equity

18

Other

42

-

259

595

- 56.5%

-645

382

-

20 Recurring Profit

9,055

4,698

+92.7%

21 Extraordinary Profit

415

1,456

- 71.5%

1,303

-

415

153

+171.2%24 Extraordinary Loss

598

880

- 32.0%25

Impairment loss

362

723

- 49.9%

26

Other

236

157

+50.3%

27 Extraordinary Profit/Loss

-183

576

-

28 Profit Before Income Taxes

8,872

5,273

+68.3%

29

Income Taxes - Current

2,920

2,621

+11.4%

30

Profit (loss) attributable to noncontrolling interests

205

-71

-

5,746

2,723

+111.0%19 Total Non-Operating Profit/Loss22

Gain on sales of shares ofsubsidiaries and associates

23

Other

31 Net Profit

FY2023 Cumulative Q3 : Consolidated Balance Sheet(Billion yen)

1
2

Current Assets

End-FY2022

172.8

159.1

+13.7

76.7

62.2

+14.5

3

Cash and Deposits

12.6

13.8

-1.2

4

Accounts
Receivable-trade

19.1

13.9

+5.2

5

Inventory

40.8

30.7

+10.1

6

Non-current Assets

96.1

96.9

-0.8

7

Property, Plant andEquipment

54.1

53.1

+1.0

8

Intangible Assets

9.0

9.1

-0.1

9

Investments andOther Assets

32.9

34.7

-1.8

90.1

74.1

+16.0

10

Copyright © ONWARD HOLDINGS CO., LTD.

Total Assets

Total Liabilities

11

Accounts Payabletrade

25.0

21.4

+3.6

12

Borrowings

38.4

27.2

+11.2

13

Other

26.7

25.5

+1.2

82.7

85.0

-2.3

14

Total Net Assets

15

Shareholders' Equity
Ratio

44.9%

47.0%

- 2.1%

16

Current Ratio

108.4%

117.2%- 8.8%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

31

ChangeEnd-FY2023 Q3

Reasins for change

Increase due to active purchaseDue to increase in borrowings

Increase due to new borrowings

FY2023 Q3 / Cumulative Q3: Results by Groups

Q3 Results（Million yen）

+ HD

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

Overseas Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

FY2023

FY2022

Change% of Change

FY2023

FY2022

Change% of Change

1

Net Sales

29,91828,815+1,103+3.8%

81,48474,870+6,614+8.8%

2Gross Profit

18,605

18,177

+428

+2.4%

49,85045,335+4,515+10.0%（% of Net Sales）(62.2%)(63.1%)(- 0.9%)(61.2%)(60.6%)

3

SG&A Expenses

15,034

14,841（% of Net Sales）(50.3%)(51.5%)

Operating Profit

3,571

3,336

（% of Net Sales）(11.9%)(11.6%)

1

Net Sales

17,84816,929+919

2Gross Profit

8,948

8,490

+458

(50.1%)(50.2%)

4（% of Net Sales）

3

SG&A Expenses

7,497

7,292

（% of Net Sales）(42.0%)(43.1%)

Operating Profit

1,451

1,198

（% of Net Sales）(8.1%)(7.1%)

1

Net Sales

5,628

4,701

2

Gross Profit

2,467

2,016

（% of Net Sales）(43.8%)(42.9%)

SG&A Expenses

2,498

2,159

（% of Net Sales）(44.4%)(45.9%)

Operating Profit

- 31

- 143

（% of Net Sales）

-

-

4

3
4

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

32

Cumulative Q3 Results

+193
+235

+205

(+0.6%)+1.3%

43,06941,667(- 1.2%)(52.9%)(55.7%)

+7.0%

6,781

3,668

(+0.3%)(8.3%)(4.9%)+5.4%

52,59349,733+2,860+1,928+5.4%

26,574

24,646(- 0.1%)(50.5%)(49.6%)+1,402+3.4%(- 2.8%)+3,113+84.9%(+3.4%)

+5.8%
+7.8%
(+0.9%)+2.8%

22,343

21,812(- 1.1%)(42.5%)(43.9%)+21.1%

4,231

2,834

(+1.0%)(8.0%)(5.7%)+927+19.7%

14,63012,434+2,196+17.7%+451+22.4%

6,514

5,177

+1,337+25.8%(+0.9%)(44.5%)(41.6%)+339+15.7%

7,185

6,452

+733

+11.4%(- 1.5%)(49.1%)(51.9%)- 671- 1,275

-

-

+253

+112

+531

+2.4%
(- 1.4%)+1,397+49.3%(+2.3%)(+2.9%)(- 2.8%)+604

FY2023 Full-Year : Forecasts by Group
Full-Year Forecast（Million yen）

Onward Kashiyama+ HD

Domestic Subtotal(Excl.Onward Kashiyama + HD)

Overseas Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

FY2023

Change% of Change

1

Net Sales

108,721

101,109+7,612+7.5%

2Gross Profit

65,58460,068+5,516+9.2%（% of Net Sales）(60.3%)(59.4%)

SG&A Expenses

57,40455,544（% of Net Sales）(52.8%)(54.9%)

Operating Profit

8,180

4,524

（% of Net Sales）(7.5%)(4.5%)

1

Net Sales

70,604

66,342+4,262+6.4%

2Gross Profit

35,09332,516+2,577+7.9%（% of Net Sales）(49.7%)(49.0%)

SG&A Expenses

30,14629,299（% of Net Sales）(42.7%)(44.2%)

Operating Profit

4,947

3,217

（% of Net Sales）(7.0%)(4.8%)

1

Net Sales

20,34817,250+3,098+18.0%

2

Gross Profit+1,949+25.8%

3
4

3
4

3
4

9,501

7,552

（% of Net Sales）(46.7%)(43.8%)

SG&A Expenses

9,816

8,642

（% of Net Sales）(48.2%)(50.1%)

Operating Profit- 315- 1,090（% of Net Sales）--© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

33

FY2022(+0.9%)+1,860+3.3%(- 2.1%)+3,656+80.8%(+3.0%)(+0.7%)

+847

+2.9%
(- 1.5%)+1,730+53.8%(+2.2%)(+2.9%)+1,174+13.6%(- 1.9%)+775

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 such as for return on equity (ROE), keeping in mind thecost of shareholders’ equity and weighted 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.

34

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.

35