Touching creation. Perpetuating life.
Imbued with the wisdom and ingenuity of top designers,
CRAHUG products find their place in our daily lives.
It is our hope that the skills and spirit of Japanese
craftsmen are passed down indefinitely.
We will work together with factories all over Japan topromote sustainable manufacturing and export caring
and kind lifestyles around the world.
CRAHUG strives to be a bridge between the past andthe future, between craftsmen and consumers.

FY02/22 1H Results Presentation Supplement
October 7, 2021
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Hello, I’m Michinobu Yasumoto, president and CEO of Onward Holdings Co., Ltd.
I would like to take this opportunity to express my sincere gratitude to you all for your continued support of the
Onward Group.
Today I’ll be using the presentation supplement to provide an overview of our financial results for the first halfof the fiscal year ending February 28, 2022.
First, please look at slide 2 of the supplement.

Contents

P.2-5

・・・ FY02/22 1H Consolidated Results and Full-Year Forecast

P.6-9

・・・ FY02/22 1H Results and Full-Year Forecast by Group Company

P.10

・・・ Early Adoption of the New Revenue Recognition Standard

P.11-12・・・ Financial Situation

P.13-16

・・・

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

©Copyright ONWARD HOLDINGS CO.,LTD.

1

FY02/22 1H Consolidated Results

Previous year’s figures adjusted to reflect changes in revenue recognition standard*1(Million yen)

Q1
FY02/221

2

3

4

FY02/21

Q2
ChangeYoY

FY02/22

FY02/21

ChangeSales

46,022

43,719+2,303105.3%

34,763

41,178Gross Profit

23,78021,082+2,698112.8%

17,238(% of Sales)

51.7%

48.2%

+3.5%

49.6%

SG&A Expenses

22,632

22,933-301(% of Sales)

49.2%

52.5%

-3.3%

Operating Profit

1,147-1,851+2,998----4,838

98.7%(% of Sales)

2.5%

-

5 Recurring Profit

1,976-1,746+3,722-

1H
2(unadjusted)*

1H
YoY

FY02/22

FY02/21

ChangeYoY

FY02/21-6,41584.4%

80,78584,897-4,11295.2%

81,353

17,631

-393

97.8%

41,01838,713+2,305106.0%

34,349

42.8%

+6.8%

50.8%

45.6%

+5.2%

21,68026,759-5,07981.0%

44,312

49,692-5,38089.2%

45,328

62.4%

65.0%

-2.6%

54.9%

58.5%

-3.6%

-4,441-9,128+4,687--3,294-10,979+7,685--10,979---9,708+4,870--2,862-11,454+8,592--11,454

42.2%

55.7%

-

6

Net Income

2,060-2,417+4,477-

5,388-12,771+18,159-

7,448-15,188+22,636--15,188

7

EBITDA*3

2,447

-304

+2,751--3,134-7,685+4,551--687-7,989+7,302--7,989*1. Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.
Adjustments: +3,544 million yen for sales, +4,364 million yen for gross profit and SG&A expenses.
*2. Unadjusted figures for 1H FY02/21 correspond to the 1H FY02/21 figures as shown in the Summary of Financial Results for Q2 FY02/22.
*3. EBITDA = operating profit + depreciation and amortization.

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

©Copyright ONWARD HOLDINGS CO.,LTD.

2

This slide shows our consolidated total results for the first half of the fiscal year. The first-half figures are listed on the right. First, sales were ¥80,800
million, down ¥4,100 million, or 4.8%, year on year.
Impacts from the COVID-19 pandemic continued through the first half of the fiscal year. The fourth and fifth waves of infections hit during the first
half, and two separate states of emergency were declared in response. This meant that, despite a relatively favorable start to the fiscal year, there
were significant impacts from the pandemic from slightly before Japan’s “Golden Week” holiday period through most of the remainder of the first
half. This resulted in a very difficult market environment. It was under these circumstances that we reported the sales result I have just mentioned.
Having said that, in the first half there was a negative impact on sales of ¥16,700 million due to the closing down of unprofitable businesses as partof the global business reforms that we have been pursuing over the last two years. When excluding this factor, sales increased by ¥12,600 million, or
19% year on year, for the continuing existing businesses.
A breakdown of sales by sales channel can be found on slide 13 of the presentation supplement, and the results for e-commerce, which we arefocusing our efforts on, shows that total consolidated e-commerce sales including overseas sales increased to ¥20,800 million, up 6% year on year.
This indicates that we have been able to achieve steady growth in e-commerce sales.
Going back to slide 2, gross profit increased by ¥2,300 million to ¥41,000 million, a 6% year-on-year increase, which we believe to be a positive resultof the business reforms that we have been pursuing over the last two years. The gross profit margin has improved by 5.2 percentage points.
Next, let's look at SG&A expenses. SG&A expenses were ¥44,300 million, down ¥5,400 million, or 10.8%, year on year. In addition, the SG&A ratio
decreased by 3.6 percentage points, and we believe this was also a positive result of our business reforms.
Regarding operating loss, since, as I just mentioned, the gross profit margin increased by 5.2 percentage points year on year, and the SG&A ratio was
down by 3.6 percentage points, we were able to improve profitability by ¥7,700 million. As a result, operating loss was ¥3,300 million, which wasclose to our initial estimate.
Next, let's look at the recurring profit column. Partly due to foreign exchange gains, subsidy income, and other factors, we managed to narrow loss
more than we had initially estimated, resulting in a recurring loss of about ¥2,900 million.
In addition, with regard to net income, we booked gains on sales in the first half of the year, which were part of our efforts over the past few years
to streamline our assets, such as the Company’s non-current assets and shares of subsidiaries and associates. As a result, net income was ¥7,400
million, exceeding our initial estimate of ¥2,200 million.
This concludes my overview of consolidated totals for the first half.
Next, please look at slide 7 of the presentation supplement.

FY02/22 1H Consolidated Results□ Sales declined 5% or 4.1 billion yen YoY to 80.8 billion yen as the market

environment remained severe due to the fact that the COVID-19 pandemic
lasted longer than initially expected. (Sales would have increased by 19% or
12.6 billion yen YoY excluding the decline in sales due to the discontinuation of
unprofitable businesses, etc. as a result of business reforms.) E-commerce
sales amounted to 20.8 billion yen (up 6% YoY) of this amount.

□ Operating profit/loss improved by 7.7 billion yen YoY due to a 5.2pp YoY

improvement in gross profit margin and a 3.6pp YoY decline in the SG&A
expense ratio, mainly as a result of the business reforms undertaken since
FY2019. As a result, the Company ended the first half with an operating loss of
3.3 billion yen, almost in line with the initial plan.

□ Net income was 7.4 billion yen, exceeding the initial plan of 2.2 billion yen,mainly due to the recording of gains on sales of non-current assets andaffiliated companies’ shares.

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

©Copyright ONWARD HOLDINGS CO.,LTD.

3

FY02/22 Full-Year Consolidated Forecast

Previous year’s figures are adjusted to reflect changes in revenue recognition standard*1(Million yen)

1H
FY02/221

2

3

4

FY02/212H
ChangeYoY

FY02/22

FY02/21

Full Year(unadjusted)*2

Full Year
ChangeYoY

FY02/22

FY02/21

ChangeYoY

FY02/21

Sales

80,78584,897-4,11295.2%

93,81599,154-5,33994.6%

174,600

184,051-9,451

94.9%

175,899

Gross Profit

41,01838,713+2,305106.0%

48,882

41,816+7,066116.9%

89,90080,529+9,371111.6%

70,702(% of Sales)

50.8%

45.6%

+5.2%

52.1%

42.2%

+9.9%

51.5%

43.8%

+7.7%

SG&A Expenses

44,312

49,692-5,38044,58851,010-6,422

88,900100,702-11,802

88.3%

90,876(% of Sales)

54.9%

58.5%

-3.6%

47.5%

51.4%

-3.9%

50.9%

54.7%

-3.8%

Operating Profit-3,294-10,979+7,685-

4,294-9,194+13,488-

1,000-20,173+21,173--20,173

89.2%

87.4%

40.2%

51.7%

-

-

4.6%

-

0.6%

-

5 Recurring Profit-2,862-11,454+8,592-

4,062-8,720+12,782-

1,200-20,174+21,374--20,174

6

Net Income

7,448-15,188+22,636-752-7,993+8,745-

8,200-23,181+31,381--23,181

7

EBITDA*1-687-7,989+7,302-

7,627-6,144+13,771-

6,940-14,133+21,073--14,133(% of Sales)*1. Figures for FY 02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.
Adjustments: +8,152 million yen for sales, +9,826 million for gross profit and SG&A expenses.
*2. Unadjusted figures for the full year FY02/21 will be shown in the Summary of Financial Results for the full year FY02/22.
*3. EBITDA = operating profit + depreciation and amortization.

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

©Copyright ONWARD HOLDINGS CO.,LTD.

4Firstly, our full-year forecast for sales is ¥174,600 million, down 5.1% year on year. In monetary terms, this will be a decrease of about¥9,500 million. Sales for like-for-like stores were down about 2% in September, as difficult conditions continued throughout themonth. We’re only about a week into October, but the state of emergency was lifted on October 1, and partly as a result of that, thesituation at stores and a variety of special events that we’ve held indicate that, compared to September, vigor is starting to return.
There are of course, however, still some concerns about how the COVID-19 pandemic will develop, including the possibility of a sixthwave of infection, and our forecast figures were calculated based on the assumption that impacts from the pandemic will continue
through the second half as they did during the first half.
For the full-year forecast, we expect the negative impact on sales of the withdrawal from unprofitable businesses as part of ourbusiness reforms to be ¥38,100 million. It’s an extremely large impact and it will be an automatic result of the reforms. Excluding this,however, we expect sales to increase by 20% or ¥28,600 million year on year for continuing existing operations.
To provide a breakdown, we expect full-year e-commerce sales to increase to reach ¥46,000 million, a 10% increase year on year. On
the subject of e-commerce, at the end of February we completely renewed our e-commerce site platform for the first time in five
years, and we refrained from sales promotions and other such activities as we worked on stabilizing this new system, so for the firsthalf of this fiscal year we'd expected to keep sales at the same level as the previous year. However, we're planning to move ahead
with promotional activities during the second half of the fiscal year, and we believe that we'll be better able to achieve year-on-year
e-commerce sales growth than we were during the first half.
Next we come to gross profit. We're forecasting full-year gross profit of ¥89,900 million, up 11.6% year on year. In monetary terms
this means we're expecting profits to increase by about ¥9,400 million and expect the gross profit margin to improve by 7.7
percentage points. We believe that this also reflects the positive results of the business reforms that we've been working on over the
past two years.
Next is SG&A expenses. We’re forecasting SG&A expenses of ¥88,900 million, down 11.7%, or ¥11,800 million year on year. We
expect the SG&A ratio to improve by 3.8 percentage points. With regard to operating loss, as a result of the gross profit marginincreasing by 7.7 percentage points and the SG&A ratio decreasing by 3.8 percentage points, we're predicting a significant
profitability improvement of ¥21,200 million year on year. As a result, we're expecting to return to the black with an operating profitof ¥1,000 million.
Next, we're forecasting recurring profit of ¥1,200 million. And lastly, we're forecasting ¥8,200 million in net income, exceeding our
initial estimate of ¥6,300 million, thanks to the booking of gains on sales of non-current assets and sales of shares of subsidiaries andassociates during the first half.
Please now look at slide 9 of the presentation supplement.

FY02/22 Full-Year Consolidated Forecast□ We expect sales to decrease by 5% or 9.5 billion yen YoY to 174.6 billion yen,assuming that the impact of the COVID-19 pandemic will continue throughout the
fiscal year. (Sales would have been expected to increase by 20% or 28.6 billion yen
YoY excluding sales decline due to the discontinuation of unprofitable businesses,
etc. as a result of business reforms.) We forecast e-commerce sales to be 46.0
billion yen (up 10% YoY) of this amount.

□ As for operating profit/loss, we forecast a significant improvement of 21.2 billion yen

YoY due to a 7.7pp YoY improvement in gross profit margin and a 3.8pp YoY
decline in the SG&A expense ratio, mainly as a result of the effects of businessreforms that have been implemented since FY2019. As a result, we expect to returnto profitability with operating profit of 1.0 billion yen.

□ We forecast net income at 8.2 billion yen, exceeding the initial plan of 6.3 billion
yen, mainly due to the recording of gains on sales of non-current assets andaffiliated companies’ shares.

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

©Copyright ONWARD HOLDINGS CO.,LTD.

5

FY02/22 1H Results by Group Company(Million yen)

Q1
Sales

Q2
Operating Profit

ChangeSales
ChangeOperating Profit

FY02/22

FY02/21

FY02/22

FY02/21

FY02/22

FY02/21

FY02/22

FY02/21

FY02/22

FY02/21

FY02/22

FY02/21

Onward Kashiyama(Nonconsolidated)

22,435

17,560+4,875770-1,573+2,343

18,34923,224-4,875-2,747-4,728+1,98140,78440,784±0-1,977-6,301

2

Onward Trading

4,568

5,466

-898

875

1,215

-340

3,010

3,169

-159

192

239

-47

7,578

8,635

-1,057

1,067

1,454

-387

Island

1,344

964

+380

-70

-305

+235

1,469

1,461

+8

-54

-108

+54

2,813

2,425

+388

-124

-413

+289

Chacott

2,148

1,062

+1,086

59

-404

+463

2,297

1,899

+398

224

-228

+452

4,445

2,961

+1,484

283

-632

+915

Creative Yoko

1,090

833

+257

48

-29

+77

1,133

1,290

-157

20

12

+8

2,223

2,123

+100

68

-17

+85

Yamato

4,714

4,476

+238

292

346

-54

4,568

4,480

+88

256

138

+118

9,282

8,956

+326

548

484

+64

D
o
m
4
e
s
5
t
i
6
c

Change1H
Operating Profit

1

3

ChangeSales

ChangeChange+4,324

7

Other

3,338

3,235

+103

-144

-25

-119

2,672

3,492

-820

-600

-602

+2

6,010

6,727

-717

-744

-627

-117

8

Domestic Subtotal(Excl. Onward
Kashiyama)

17,202

16,036+1,166

1,060

798

+262

15,14915,791

-642

38

-549

+587

32,351

31,827

+524

1,098

249

+849

Europe7,301

10,468-3,167

286

-389

+675

1,521

3,347

-1,826-333-2,419+2,086

8,822

13,815-4,993-47-2,808+2,761

125

131

-6

-132

-166

+34

172

58

+114

-99

-93

-6

297

189

+108

-231

-259

+28

1,146

1,085

+61

50

121

-71

1,065

1,096

-31

-128

49

-177

2,211

2,181

+30

-78

170

-248

9
10
11
12
13
14

O
v
e
r
s
e
a
s

North America
Asia

71

1,029

-958

-191

116

-307

79

4

+75

-121

-1

-120

150

1,033

-883

-312

115

-427

Overseas Subtotal

8,643

12,713-4,070

13

-318

+331

2,837

4,505

-1,668-681-2,464+1,783

11,48017,218-5,738-668-2,782+2,114

Consolidated Total

46,022

43,719+2,303

1,147-1,851+2,99834,763

41,178-6,415-4,441-9,128+4,68780,78584,897-4,112-3,294-10,979+7,685©Copyright ONWARD HOLDINGS CO.,LTD.

6

Guam Resort

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.
Note: Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.

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

FY02/22 1H Results by Group Company（100mn yen）

±0
849

+4

+4,875

+1

+3

+15

-7

-10

-50
+1

+11

±0

808

-9

+3
+43

+9

+1

-4

+28

+1

±0

+4
-3

-33

-4

-1

-110

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

©Copyright ONWARD HOLDINGS CO.,LTD.

7

This slide shows the breakdown of figures for the consolidated totals by group company.
First, the upper graph of slide 7 shows the changes in consolidated sales by group company. The yellow bar on the left shows sales for the first halfof the previous fiscal year, which totaled ¥84,900 million. The yellow bar on the right shows sales for the first half of this fiscal year, which came to¥80,800 million. As I mentioned earlier, sales decreased by ¥4,100 million year on year. There were a number of factors that caused this. The mostsignificant of these was our withdrawal from unprofitable businesses during the previous fiscal year in Europe, and particularly in Italy, as part of ourbusiness reforms. That resulted in a negative impact on first-half sales of ¥5,000 million. The red “Europe” bar slightly to the right of the middle of
the graph shows the ¥5,000 million decline in sales from European operations due to withdrawal from businesses. I think that this accounts for mostof the overall ¥4,100 million decrease in sales.
Meanwhile, as shown on the left, sales for Onward Kashiyama, the core company in the apparel business, were unchanged year on year. Due tobusiness reforms, Onward Kashiyama closed down a considerable number of its unprofitable stores and withdrew from unprofitable brandbusinesses during the previous fiscal year, and sales decreased by about ¥8,500 million due to these reforms. I think it can be understood from thisthat Onward Kashiyama’s sales from its continuing existing businesses therefore increased by ¥8,500 million year-on-year, thereby entirely
offsetting the loss resulting from the reforms.
The third group of sales figures is for Lifestyle Business. In our "Onward Vision 2030" unveiled in April we declared that we will focus on the growthof the business, and all three of the companies that are at the core of promoting this vision: Chacott, Creative Yoko, and Yamato, achieved increases
in sales in spite of the difficult business environment created by the COVID-19 pandemic. In total, we believe that we've already been able to draw
on the fruits of the business reforms, even though overall sales have decreased by ¥4,100 million.
To see how the fruits of the reforms have been contributing, please take a look at the lower bar graph, which provides a breakdown of changes in
consolidated operating profit by group company. The first half of the previous fiscal year saw very unfavorable results, with an operating loss of¥11,000 million, but we’ve been able to reduce this loss by 70% and reach an operating loss for the first half of this fiscal year of ¥3,300 million. This
represents a profitability improvement of ¥7,700 million, and I think that we can explain the breakdown of this improvement with the three factors
marked with circles. The first one, on the left, is Onward Kashiyama, our core apparel group company. Sales for Onward Kashiyama remained at thesame level year on year, as I just mentioned, but their profitability improved by ¥4,300 million as a result of withdrawing from unprofitablebusinesses and closing down unprofitable stores while focusing on more profitable businesses and stores. Second, as shown slightly to the right ofthe center, sales at European operations have decreased by ¥5,000 million due to withdrawing from businesses and other factors, but withdrawing
from businesses that were in the red has actually made it possible to reduce the operating loss of European operations by ¥2,800 million. Third, thelifestyle business-related companies, Chacott, Creative Yoko, and Yamato, have each increased their profits, and we managed to steadily increase
sales and profits in the Lifestyle Business in the first half.
Adding up the figures above gives us the aforementioned consolidated totals.
Next, I'd like to move on to our full-year forecasts.
Please look at slide 4 of the presentation supplement.

FY02/22 Full-Year Forecast by Group Company(Million yen)

1H
Sales
FY02/22

FY02/21

1

Onward Kashiyama(Nonconsolidated)

40,78440,7842

Onward Trading

7,578

Island

D
o
m
4
e
s
5
t
i
6
c
3

2H
Operating Profit

ChangeFY02/22

FY02/21±0-1,977-6,301

8,635-1,057

1,067

2,813

2,425

+388

Chacott

4,445

2,961

Creative Yoko

2,223

2,123

Yamato

9,282

8,956

Sales
ChangeFull Year
Operating Profit

FY02/22

FY02/21+4,32453,21647,487

1,454

-387

7,663

-124

-413

+289

+1,484

283

-632

+100

68

-17

+326

548

484

ChangeFY02/22

FY02/21+5,7295,577-3,248

6,956

+707

600

3,230

3,291

-61

+915

4,254

4,214

+85

2,971

2,951

+64

10,002

9,353

Sales
ChangeOperating Profit

FY02/22

FY02/21+8,82594,00088,271

191+409

15,241

171

169

+2

6,043

+40

16

-216

+232

+20

289

287

+2

+649

403

313

+90

19,284

ChangeFY02/22

FY02/21+5,7293,600-9,549Change15,591

-350

1,667

1,645

+22

5,716

+327

47

-244

+291

8,699

7,175

+1,524299-848+1,147

5,194

5,074

+120

357

270

+87

18,309

+975

951

797

+154

+13,149

7

Other

6,010

6,727

-717

-744

-627

-117

8,329

7,872

+457

123

-592

+715

14,33914,599-260-621-1,219+598

8Domestic Subtotal(Excl. Onward
Kashiyama)

32,351

31,827

+524

1,098

249

+849

36,44934,637+1,812

1,602

152+1,45068,80066,464+2,3362,700

401+2,2999Europe8,822

13,815-4,993-47-2,808+2,761

4,283

20,011-15,728-110-3,071+2,961

13,10533,826-20,721-157-5,879+5,722

297

189

+108

-231

-259

+28

533

227

+306

-170

-330

+160

830

416

+414

-401

-589

+188

2,211

2,181

+30

-78

170

-248

2,751

2,085

+666

-30

-308

+278

4,962

4,266

+696

-108

-138

+30

150

1,033

-883

-312

115

-427

253

37

+216

-622

-226

-396

403

1,070

-667

-934

-111

-823

O
v North Americae
11 r Asias
12 e Guam Resort
a
s
10

13

Overseas Subtotal

11,48017,218-5,738-668-2,782+2,114

7,820

22,360-14,540-932-3,935+3,003

19,30039,578-20,278-1,600-6,717+5,11714

Consolidated Total

80,78584,897-4,112-3,294-10,979+7,685

93,81599,154-5,3394,294-9,194+13,488

174,600

184,051-9,451

1,000-20,173+21,173©Copyright ONWARD HOLDINGS CO.,LTD.

8

Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.
Note: Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.

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

FY02/22 Full-Year Forecast by Group Company

+15
1,841

+57

-3

+1

+10

+4,875-3▲4,070

-207

+4

+7

+28

+7

+2
+57
±0
-202

+3

+11

+1

+2

1,746

-7

±0

-8

10

+6

+131

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

©Copyright ONWARD HOLDINGS CO.,LTD.

9This slide shows a breakdown of our full-year forecast by group company.
First of all, with regard to change in consolidated sales, we expect a decrease of ¥9,500 million in total, from
¥184,100 million for the previous fiscal year to ¥174,600 million. However, this includes the ¥20,700 million
negative impact from the withdrawal from unprofitable stores in Europe, as shown just to the right of the
middle of the graph. This is a significant negative factor contributing to the decrease for the full year. On theother hand, as far as areas aside from European operations go, Onward Kashiyama, the core group company forapparel, is targeting a ¥5,700 million increase in sales, and the core companies of the lifestyle area, Chacott,Creative Yoko, and Yamato, are estimating a sales increase of ¥2,600 million in total. Sales for the entire groupwill decrease by ¥9,500 million because the decrease in sales in Europe will be significant, but we believe that
this will ultimately serve to make the entire group’s consolidated operations leaner and more robust.
Changes in consolidated operating profit are shown on the lower part of this slide. The breakdown of theoperating loss improvement of ¥21,200 million is an improvement of ¥13,100 million for Onward Kashiyama,shown on the left, followed by an improvement of ¥5,700 million for European operations, and then an
improvement of ¥1,400 million for the three core lifestyle-related companies. These areas are the main pillars
supporting our operating profitability improvement.
This ends my explanation of the consolidated totals and the breakdown by major group company for the firsthalf results and the full-year forecast figures.
Please now look at slide 10 of the presentation supplement.

Early Adoption of the New Revenue Recognition Standard

The new revenue recognition standard will be applied to companies starting a new
fiscal year beginning on or after April 1, 2021. The Group will adopt the new revenue
recognition standard early starting in FY02/22.

Key impact of the new revenue recognition standard on the GroupFor transactions with department stores, retail sales will be recorded as sales and rent
equivalents will be recorded as SG&A expenses, whereas previously the net amount after
deducting rent equivalents was recorded as sales.
Loyalty point usage fees, which were previously included in SG&A expenses, will instead be
deducted from sales.
The above changes will not affect operating profit.

The adoption of the new revenue recognition standard will unify the sales
recognition standards that previously differed by sales channel.

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

©Copyright ONWARD HOLDINGS CO.,LTD.

10

Here you will find an explanation of our company's policy of moving as soon as possible toward application of
the new accounting standards for revenue recognition.
We explained this at the time of the announcement of the first-quarter financial results, so I won’t go into thedetails again now, but please refer to this page for more information.
With regard to the figures I went over earlier, all the figures for the previous fiscal year have been converted toconform to the new standards.
This concludes my presentation. Thank you very much for your attention.

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

©Copyright ONWARD HOLDINGS CO.,LTD.

Hello, I’m Osamu Sato, director in charge of finance, accounting, and investor relations at Onward Holdings.
I’ll now go over our current financial situation.
Please look at slide 11 of the presentation supplement.

FY02/22 1H Financial Situation■Consolidated Balance Sheet(Billion yen)
End-1H FY02/22
1 Current Assets

End-FY02/21

Change

62.4

80.4

-18.0

2

Cash and Deposits

19.2

21.3

-2.1

3

Accounts Receivable

10.9

18.2

-7.3

4

Inventory

28.6

34.3

-5.7

5 Non-current Assets

102.7

115.5

-12.8

6

Property, Plant and Equipment

61.2

71.8

-10.6

7

Intangible Assets

10.1

10.6

-0.5

8

Investments and Other Assets

31.3

33.0

-1.7

165.1

196.0

-30.9
-36.8

9 Total Assets
10 Liabilities

99.7

136.5

11

Accounts Payable

15.8

21.9

-6.1

12

Loans Payable

56.7

78.0

-21.3

65.4

59.5

+5.9

13 Net Assets© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

©Copyright ONWARD HOLDINGS CO.,LTD.

11

With regard to the consolidated balance sheets, in line with our direction on asset streamlining and inventory control, total assets
decreased by ¥30,900 million compared with the end of the previous fiscal year, while liabilities decreased by ¥36,800 million. As aresult, net assets increased by ¥5,900 million.
Total assets at the end of the second quarter, No. 9 on the slide, were ¥165,100 million, a decrease of ¥30,900 million compared withthe end of the previous fiscal year, as a result of initiatives such as sales of non-currents assets and inventory streamlining.
Cash and deposits, No. 2 on the slide, decreased ¥2,100 million, to ¥19,200 million, and notes and accounts receivable—trade, No. 3,
was down ¥7,300 million, to ¥10,900 million. This was due to improvements in capital efficiency following withdrawal from businesses
in Europe.
Inventories, No. 4, decreased ¥5,700 million to ¥28,600 million due to the withdrawal from businesses in Europe and the curbing ofprocurement as part of inventory control measures.
As a result, total current assets, No. 1, decreased ¥18,000 million to ¥62,400 million.
Property, plant and equipment, No. 6, declined ¥10,600 million to ¥61,200 million compared with the end of the previous fiscal year,
as a result of sales of land and buildings based on our policy of pursuing more efficient management of assets.
Non-current assets, No. 5, decreased ¥12,800 million to ¥102,700 million.
Liabilities, No. 10, totaled ¥99,700 million, a decrease of ¥36,800 million compared with the end of the previous fiscal year.
Notes and accounts payable—trade, No. 11, decreased ¥6,100 million, to ¥15,800 million, as a result of withdrawal from businesses in
Europe and the curbing of procurement at Onward Kashiyama.
Borrowings, No. 12, declined by ¥21,300 million, to ¥56,700 million, as gain on sales of non-current assets was used for repayment ofborrowings.
Net assets, No. 13, increased by ¥5,900 million from the previous fiscal year-end, reaching ¥65,400 million.
Next, please look at Slide 12 of the presentation.

FY02/22 1H Financial Situation(Million yen)■Consolidated Cash Flows

1H
FY02/22

FY02/21

Change1 CF from Operating Activities962-22,914+23,876

2 CF from Investing Activities

20,022

4,500+15,522

3 CF from Financing Activities-23,966

16,025-39,991

4 Balance of Cash and Equivalents

19,261

26,265-7,004■Capex

1H
FY02/22

FY02/21

Change5 Capex

2,385

3,229

-844

6 Depreciation

2,392

2,804

-412

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

©Copyright ONWARD HOLDINGS CO.,LTD.

12

I’d now like to go over our consolidated cash flows.
Net cash provided by operating activities, No. 1 on this slide, was ¥962 million, compared with net cash used in operating activities of ¥22,900
million in the first half of the previous fiscal year. This significant increase in cash was mainly the result of profit growth coupled with the positive
impact of decreases in inventory. Despite the difficult conditions, we were able to return to a positive operating cash flow.
Net cash provided by investing activities, No. 2, was ¥20,022 million. Cash inflow from ongoing sales of property, plant and equipment in line with
our policy of asset streamlining contributed to this.
Net cash used in financing activities, No. 3, was ¥23,966 million due to using the inflow of cash from operating activities and asset sales for the
repayment of borrowings.
Cash and cash equivalents, No. 4, totaled ¥19,261 million, a decrease of ¥7,000 million from the end of the previous fiscal year. The withdrawal frombusinesses in Europe will contribute to our ability to more efficiently utilize capital that had previously been dispersed among subsidiaries.
Given the total of ¥50,000 million in commitment line agreements concluded with a group of banks centered on three megabanks, we have secured
a sufficient amount of cash and deposits.
Capital investment, No. 5, totaled ¥2,385 million. Investments were minimized and limited to only those deemed completely necessary, andprimarily consisted of investments in our new Dalian factory as well as digital transformation-related investments in systems and so on.
Depreciation and amortization, No. 6, was ¥2,400 million, a year-on-year decrease.
The shareholders’ equity ratio, No. 7, recovered from 28.9% on February 28, 2021 to 39.4% as of the end of the first half of the fiscal year. We’ve
nearly reached 40%, which we consider to be the level that the group as a whole should attain.
This ends my review of our financial situation for the first half of the fiscal year ending February 28, 2022.
Please refer to Slide 13 onward for the Data Book.
This concludes my presentation. Thank you very much.

DATA BOOK

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

©Copyright ONWARD HOLDINGS CO.,LTD.

DATA BOOK: FY02/22 1H Results
Sales by Channel
Total consolidated e-commerce sales (incl. overseas sales) were 20.8 billion yen (up 6% YoY).
The e-commerce ratio for domestic businesses was 31.4%. The directly managed e-commerce
ratio was 87.7%.
(Million yen)
Department Stores

1 Onward Kashiyama

Shopping Centers andOtherPhysical Stores Total

Directly Managed ECommerce

Other E-Commerce
Platforms

E-Commerce Total

Total Sales

E-Commerce Ratio

Directly Managed ECommerce Ratio

31.6%

90.3%

15,42012,47627,896

11,642

1,246

12,88840,7842% of sales

37.8%

30.6%

68.4%

28.5%

3.1%

31.6%

100.0%

3

YoY

86.4%

135.7%

103.2%

89.8%

161.6%

93.8%

100.0%

-2.1%

-4.1%

4,630

10,40015,030

5,600

1,164

6,764

21,794

31.0%

82.8%

31.4%

87.7%

-0.4%

-3.2%

Eight Domestic Subsidiaries
4
Using E-Commerce *1
Total of Domestic Group Companies
5 Using E-Commerce

20,05022,87642,926

17,242

2,410

19,65262,5786% of sales

32.0%

36.6%

68.6%

27.6%

3.9%

31.4%

100.0%

7

YoY

91.8%

121.1%

105.4%

99.9%

140.0%

103.5%

104.8%*1. Domestic subsidiaries using e-commerce (Island, Tiaclasse, Onward Personal Style, Chacott, Creative Yoko, Yamato, Intimates, KOKOBUY)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

©Copyright ONWARD HOLDINGS CO.,LTD.

13

DATA BOOK: FY02/22 1H Results(Million yen)

SG&A Expenses

Q1
FY02/22

FY02/21

Q2
ChangeYoY

FY02/22

FY02/211H
ChangeYoY

FY02/22

FY02/21

ChangeYoY

1 Personnel

8,905

9,842

-937

90.5%

9,229

12,227-2,99875.5%

18,13422,069-3,93582.2%

2 Rent

5,987

4,672

+1,315128.1%

4,883

6,384

-1,501

76.5%

10,87011,056

-186

98.3%

3 Transportation

1,602

1,587

+15

100.9%

1,481

1,538

-57

96.3%

3,083

3,125

-42

98.7%

4 Promotion and Advertising

1,501

1,715

-214

87.5%

1,309

1,760

-451

74.4%

2,810

3,475

-665

80.9%

902

999

-97

90.3%

941

967

-26

97.3%

1,843

1,966

-123

93.7%
94.6%

5 Depreciation
6 Other

3,735

4,118

-383

90.7%

3,837

3,883

-46

98.8%

7,572

8,001

-429

7

22,632

22,933

-301

98.7%

21,68026,759-5,07981.0%

44,312

49,692-5,38089.2%

8 Extraordinary loss adjustment

779

2,409

-1,630

32.3%

283

709

-426

39.9%

1,062

3,118

-2,056

34.1%(Reference) Effective SG&A
expenses

23,411

25,342-1,931

92.4%

21,963

27,468-5,50580.0%

45,374

52,810-7,43685.9%

9

Total SG&A expenses

Note: Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.

Non-Operating
Profit/Loss(Million yen)

1H
FY02/22

FY02/21

ChangeYoY

10 Interest income

20

23

-3

87.0%

11 Dividend income

91

116

-25

78.4%

12 Foreign exchange gains

109

-648

+757

-

13 Subsidy income

450

108

+342

416.7%
130.8%

14 Other non-operating income

573

438

+135

15 Interest paid

-221

-242

+21

91.3%

16 investments

-42

-38

-4

110.5%

17 Other non-operating expenses

-548

-232

-316

236.2%

18

432

-475

+907

-

Loss on equity method

Non-operating profit/loss

Extraordinary
Profit/Loss© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

©Copyright ONWARD HOLDINGS CO.,LTD.

14

DATA BOOK: 1H FY02/22 Results

Results by segment© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

©Copyright ONWARD HOLDINGS CO.,LTD.

15

DATA BOOK: FY02/22 1H Results
Onward Kashiyama (Non-consolidated)(Million yen)

Q1
FY02/221
2
3
4

FY02/21

Q2
ChangeYoY

FY02/22

FY02/211H
ChangeYoY

FY02/22

FY02/21

ChangeYoY

Sales

22,435

17,560+4,875127.8%

18,34923,224-4,87579.0%

40,78440,784±0

100.0%

Gross Profit

13,076

10,119+2,957129.2%

9,392

11,232-1,84083.6%

22,46821,351+1,117105.2%

51.2%

48.4%

+2.8%

55.1%

52.4%

+2.7%

105.3%

12,13915,960-3,821

76.1%

24,44527,652-3,207

88.4%

-

66.2%
-2,74768.7%-4,728-2.5%+1,981-59.9%-1,97767.8%-6,301-7.9%+4,324---% of sales

58.3%

57.6%

SG&A Expenses

12,306

11,692+614% of sales

54.9%
770

66.6%
-1,573-11.7%+2,343Operating Profit

+0.7%

3.4%
Note: Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.
% of sales

Domestic Subtotal (Excl. Onward Kashiyama)
5
6
7

8

Sales

17,202

16,036+1,166107.3%

15,14915,791

-642

95.9%

32,351

31,827+524

101.6%

Gross Profit

8,439

7,564

+875

111.6%

7,749

7,146

+603

108.4%

16,18814,710+1,478110.0%% of sales

49.1%

47.2%

+1.9%

51.2%

45.3%

+5.9%

50.0%

46.2%

+3.8%

100.2%

15,09014,461+629

104.3%

-

46.6%
1,098

45.4%
249

+1.2%
+849

441.0%

3.4%

0.8%

+2.6%

SG&A Expenses

7,379

6,766

+613

% of sales

42.9%
1,060

42.2%
798

+0.7%
+262

Operating Profit

109.1%

7,711

7,695

+16

132.8%

50.9%
38

48.7%
-549

+2.2%
+587

% of sales
6.2%
5.0%
+1.2%
0.3%
Note: Calculated using simple sums for the domestic group excluding Onward Kashiyama.
Note: Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.

Overseas Subtotal
9
10
11
12

Sales

8,643

12,713-4,070

68.0%

2,837

4,505

-1,66863.0%

11,48017,218-5,738

66.7%

Gross Profit

3,352

4,914

-1,562

68.2%

1,032

200

+832

516.0%

4,384

5,114

-730

85.7%

% of sales

38.8%

38.7%

+0.1%

36.4%

4.4%

+32.0%

38.2%

29.7%

+8.5%

SG&A Expenses

3,339

5,232

-1,893% of sales

38.6%
13

41.2%
-318

-2.6%
+331

Operating Profit

63.8%

1,713

2,664

-951

-

60.4%
-681

59.1%
-2,464+1.3%+1,783

64.3%

5,052

7,896

-2,844

64.0%

-

44.0%
-668

45.9%
-2,782-1.9%+2,114---% of sales
0.2%
Note: Calculated using simple sums.
Note: Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.

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

©Copyright ONWARD HOLDINGS CO.,LTD.

16

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.