Consolidated Financial Results
for the Nine Months Ended November 30, 2023
[Japanese GAAP]
January 11, 2024
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, Managing Director in charge of Finance, Accounting, Investor Relations
Phone: +81-3-4512-1030
Scheduled date of filing quarterly securities report: January 12, 2024
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, 2023 (March 1, 2023 – November 30,
2023)(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, 2023
141,383
8.4
9,700
124.8
9,055
92.7
5,746
111.0
November 30, 2022
130,397
4.9
4,315
–
4,698
–
2,723
(66.3)(Note) Comprehensive income: Nine months ended November 30, 2023: 4,662 million yen [(52.7)%]
Nine months ended November 30, 2022: 9,849 million yen [(2.1)%]
Basic earnings
Diluted earnings
per shareper share
Nine months ended
Yen
Yen
November 30, 2023
42.35
42.29
November 30, 2022
20.08
20.05
(Reference) EBITDA (operating profit + depreciation and amortization):
Nine months ended November 30, 2023: 13,282 million yen [61.1%]
Nine months ended November 30, 2022: 8,244 million yen [191.0%](2) Consolidated Financial Position
Total assets
Net assets
Million yen
Million yen
As of November 30, 2023
172,857
82,719As of February 28, 2023
159,198
85,073(Reference) Shareholders’ equity: As of November 30, 2023: 77,582 million yen
As of February 28, 2023: 74,747 million yen

Shareholders’ equity ratio
%
44.9
47.0

2. Dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end
Yen

Yen

Year-end

Total

Yen

Yen

Yen

–

12.00

12.00

18.00

18.00

Fiscal year ended––
February 28, 2023
Fiscal year ending––
February 29, 2024
Fiscal year ending
February 29, 2024 (Forecast)(Note) Revision to the forecast for dividends announced most recently: Yes–

3. Consolidated Performance Forecast for the Fiscal Year Ending February 29, 2024 (March 1, 2023 - February
29, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Recurring profit
owners of parent
per share
Million yen%

Yen

Full year
189,211
7.5
11,022 111.4
10,01288.2
5,911(Note) Revision to the performance forecast announced most recently: Yes(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 29, 2024 (forecast): 16,100 million yen [55.2%]
Full year ended February 28, 2023: 10,373 million yen [165.0%]

Million yen%

Million yen%

Million yen

%

93.1

43.55

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): None
Newly included: – (Company name:)
Excluded: – (Company name:)(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, 2023:
157,921,669 shares
As of February 28, 2023:
157,921,669 shares2) Total number of treasury shares at the end of the period:
As of November 30, 2023:
22,193,147 shares
As of February 28, 2023:
22,204,488 shares
3) Average number of shares outstanding during the period:
Nine months ended November 30, 2023:
135,716,975 shares
Nine months ended November 30, 2022:
135,642,227 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 outlook 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 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
In the first nine months ended November 30, 2023, the Japanese economy saw socioeconomic activities
returning to normal propelled by the lifting of various COVID-related restrictions. However, soaring energy
and raw materials prices attributed to geopolitical tensions and rising domestic prices caused by foreignexchange rate changes dampened consumer sentiment and corporate activities, rendering the economic outlook
uncertain.
The apparel and fashion industry witnessed a drastic change in consumer purchasing behavior caused byhigher-than-usual temperatures between September and November, which delayed the sales of fall and wintermerchandise.
Under these circumstances, at the Onward Group, sales of the mainstay brand business continued to be robust,owing to flexible merchandising strategies and further improvement in the operation of OMO (Online Merges
with Offline) stores that offer “Click & Try” services. Operating profit margin also increased year-on-year, due
to the success of global business reforms and progress in streamlining the supply chain.
Thanks to the above, sales and all profit categories grew in the third quarter of the current fiscal year. As aresult, during the first nine months ended November 30, 2023, consolidated net sales came to 141,383 million
yen (+8.4% year-on-year), consolidated operating profit 9,700 million yen (+124.8% year-on-year),consolidated recurring profit 9,055 million yen (+92.7% year-on-year), and profit attributable to owners ofparent 5,746 million yen (+111.0% year-on-year).
The Onward Group is accelerating growth by reinforcing and expanding its business base through thedevelopment of new businesses and M&As. In doing so, the Group has adopted EBITDA (operating profit +depreciation and amortization) as a key performance indicator to facilitate earnings comparisons between
companies regardless of differences in accounting standards.
In the first nine months ended November 30, 2023, EBITDA amounted to 13,282 million yen (+61.1% yearon-year).
Results by segment were as follows.
[Apparel Business]
In the domestic business, sales grew thanks to the strong performance of “Nijyusanku” and other mainstay
brands of the core operating company Onward Kashiyama Co., Ltd. The development and launch of popular
products in “UNFILO” also contributed to sales growth. At Onward Personal Style Co., Ltd., which operates
the “KASHIYAMA” brand, sales at directly managed stores and B2B sales performed well.
Overseas, sales increased in Europe, Americas, and Asia, with the profitability sharply improving.
As a result, the Apparel Business posted higher sales and profit.
[Lifestyle Business]
Chacott Co., Ltd., which runs the wellness business, posted higher sales owing to enhanced marketingstrategies utilizing social media and the development and launch of popular products in the Chacott Cosmetics
line. At Creative Yoko Co., Ltd., which operates the pet and home life business, sales continued to expand
backed by the success of aggressive store opening measures.
As a result, sales and profit increased in the Lifestyle Business.

2(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 13,658 million yen
compared with the end of the previous fiscal year to 172,857 million yen. This was primarily due to increases innotes and accounts receivable—trade, and contract assets of 5,124 million yen and merchandise and finishedgoods of 9,768 million yen, and decreases in cash and deposits of 1,138 million yen and investment securities of909 million yen.
Liabilities increased by 16,012 million yen compared with the end of the previous fiscal year to 90,137
million yen. This was primarily due to increases in notes and accounts payable—trade of 585 million yen,electronically recorded obligations—operating of 3,033 million yen and short-term borrowings of 12,477 million
yen, and a decrease in long-term borrowings of 1,312 million yen.
Net assets decreased by 2,353 million yen compared with the end of the previous fiscal year to 82,719
million yen. This was primarily due to profit attributable to owners of parent of 5,746 million yen, dividends ofsurplus of 1,628 million yen, a decrease in valuation difference on available-for-sale securities of 1,055 million
yen, a decrease in foreign currency translation adjustment of 125 million yen, and a decrease in non-controllinginterests of 5,182 million yen.
As a result, the shareholders’ equity ratio was 44.9%.
(3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information
In the nine months ended November 30, 2023, net sales, operating profit and recurring profit generally progressed
as planned according to the consolidated performance forecast for the full year announced on October 5, 2023.
Profit attributable to owners of parent is expected to exceed the previous forecast due to a decrease in income
taxes—deferred accompanying recording of deferred tax assets, as increased taxable income due to ongoingfavorable business results is expected.
Due to the above results, the consolidated performance forecast for the full year is revised as follows:
Revisions to the consolidated performance forecast for the full year ending February 29, 2024 (March 1, 2023 February 29, 2024)
Profit attributable to
Basic earnings per shareowners of parent
Previous forecast (A)Revised forecast (B)Change (B-A)
Change rate (%)*(Reference) Fiscal year ended February 28, 2023

3

Million yen

Yen

5,462
5,911
449
8.2
3,061

40.25
43.55
–
–

22.57

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of February 28, 2023
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, 2023

13,805

12,667

13,981

19,10527,297
486
2,935
4,185
(437)
62,25537,066
531
3,204
4,644
(475)
76,745

19,49823,32810,30353,13019,652
23,511
10,98554,149

4,025
5,081
9,106

3,545
5,488
9,034

16,433
5,441
3,454
9,708
(331)
34,706
96,943
159,198

15,524
5,556
2,307
9,726
(185)
32,928
96,112
172,857(Million yen)
As of February 28, 2023
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, 2023

8,154
13,236
18,600
1,129
914
179
10,90953,124

8,739
16,26931,078
900
2,393
108
11,32670,817

8,657
2,886

7,345
2,865

262

290

2,563
6,630
21,00074,1252,605
6,213
19,31990,13730,07950,347
16,042(20,748)
75,721

30,07950,342
20,201(20,737)
79,8852,620
30(5,698)
1,441
631
(973)
82
10,24385,073
159,198

1,565(7)(5,738)1,316
561(2,303)76
5,061
82,719172,857

(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
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
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
Extraordinary income
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Other
Total extraordinary income
Extraordinary losses
Extraordinary loss due to closing and other
Impairment loss
Loss on disaster
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, 2022
130,397
57,772
72,62568,3094,315

For the nine months
ended November 30, 2023
141,383
61,10980,27470,573
9,700

20
107

46
123

–

42

788
338
1,255

–
176
388

234

392

42

–

–
595
873
4,698

380
259
1,033
9,055

123
1,303
29
1,456

362
–
52
415

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

–
362
187
48
598
8,872
2,920
5,952
205
5,746

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
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

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

For the nine months
ended November 30, 2023
5,952

3,777
80
3,374
(34)

(1,067)
(38)
(129)
(70)

–

16

7,197
9,849

(1,289)
4,662

9,435
414

4,457
205

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 accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021; hereinafter referred to as the “Fair Value Measurement Guidance”) fromthe 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 Guidance in accordance with the transitional treatment
provided in paragraph 27-2 of the Fair Value Measurement Guidance.
This does not affect the quarterly consolidated financial statements.
(Additional information)(Application of Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System)
The Company and certain consolidated subsidiaries in Japan have transitioned from a consolidated taxation
system to the group tax sharing system from the first quarter of the fiscal year under review. In accordance with
this, the accounting and disclosure of corporate taxes, local corporate taxes, and tax effect accounting are inaccordance with the “Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System”(PITF No. 42, August 12, 2021; hereinafter referred to as “PITF No. 42”).
Furthermore, based on paragraph 32 (1) of PITF No. 42, it is deemed that there are no effects due to changes
in accounting policies accompanying the application of PITF No. 42.

8

(Segment information, etc.)
I 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 reportablesegments.
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.

9II Nine months ended November 30, 2023 (From March 1, 2023 to November 30, 2023)
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)

97,764

11,120108,884

32,499141,383–

141,383

806

1,484

2,290

858

3,149

(3,149)–98,5707,114

12,604(525)

111,175
6,589

33,357
3,712

144,532
10,302(3,149)(601)

141,383
9,700

Total

(Notes) 1. The adjustment amount for segment profit (loss) of (601) million yen includes amortization of goodwillof (622) million yen, elimination of intersegment transactions of 2,814 million yen, and corporate
expenses not allocated to reportable segments of (2,793) million yen.
Corporate expenses are mainly general and administrative expenses that are not attributable to reportablesegments.
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