Consolidated Financial Results
for the Fiscal Year Ended February 28, 2021
[Japanese GAAP]
April 8, 2021
Company name: Onward Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange, Nagoya Stock Exchange
Securities code: 8016
URL: https://www.onward-hd.co.jp/site/english/
Representative: Michinobu Yasumoto, President and CEO
Contact: Osamu Sato, Director in charge of Finance, Accounting, Investor relations
Phone: +81-3-4512-1030
Scheduled date of Annual General Meeting of Shareholders: May 27, 2021
Scheduled date of commencing dividend payments: May 28, 2021
Scheduled date of filing annual securities report: May 28, 2021
Availability of supplementary materials on financial results: Available
Schedule of financial results briefing session: Scheduled (for institutional investors, securities analysts, and the press)(Amounts of less than one million yen are rounded down.)
1. Consolidated Performance for the Fiscal Year Ended February 28, 2021 (March 1, 2020 - February 28, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Recurring profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
February 28, 2021
174,323 (29.8)(21,230)–(20,174)–(23,181)–
February 29, 2020
248,233
3.2(3,061)–(3,835)–(52,135)–(Note) Comprehensive income: Fiscal year ended February 28, 2021: (20,032) million yen [–%]
Fiscal year ended February 29, 2020: (58,757) million yen [–%]
DilutedRatio ofRatio of
Return on
Basic earnings
earnings
recurring profit operating profit
equityper shareper share
to total assets
to net sales
Fiscal year ended
Yen
Yen
%
%
%
(171.18)–(31.6)(9.4)(12.2)
February 28, 2021
February 29, 2020
(383.97)–(42.0)(1.5)(1.2)(Reference) Share of profit (loss) of entities accounted for using equity method:
Fiscal year ended February 28, 2021: (70) million yen
Fiscal year ended February 29, 2020: (1,390) million yen
EBITDA (operating profit + depreciation and amortization):
Fiscal year ended February 28, 2021: (15,343) million yen [–%]
Fiscal year ended February 29, 2020: 5,079 million yen [61.7%](2) Consolidated Financial Position
Total assets
Million yen

Net assets

Shareholders’equity ratio

Million yen

196,052
As of February 28, 2021
59,509234,316
As of February 29, 2020
94,036(Reference) Shareholders’ equity: As of February 28, 2021: 56,723 million yen
As of February 29, 2020: 89,812 million yen

Net assets per share
%

Yen

28.9
38.3

418.32665.17

(3) Consolidated Cash Flows
Cash and cash
equivalents
at end of period

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen(19,614)
8,003

6,091
(10,758)

5,860(1,595)

21,27028,780Fiscal year ended
February 28, 2021
February 29, 2020
2. Dividends
1stquarterend
Fiscal year ended
February 29,
2020
Fiscal year ended
February 28,
2021
Fiscal year ending
February 28,
2022 (Forecast)

Annual dividends per share
2nd
3rd
Yearquarter- quarterend
end
end

Total

Total
dividends(annual)Ratio of
Payout ratio dividends to
net assets(consolidated)(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–

–

–

24.00

24.00

3,240

–

2.5

–

–

–

12.00

12.00

1,627

–

2.1

–

–

–

12.00

12.00

25.8

3. Consolidated Performance Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 - February
28, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Recurring profit
to owners ofper share
parentMillion yen%

Million yen%

Million yen%

Million yen%

1H (cumulative)
89,300 10.8
(3,000)–(3,000)–2,200–
Full year
190,500
9.3
3,200
–
3,000
–
6,300
–
(Reference) EBITDA (operating profit + depreciation and amortization):Full year ending February 28, 2022 (forecast): 9,300 million yen [–%]
Full year ended February 28, 2021: (15,343) million yen [–%]

Yen

16.25
46.52

* Notes:(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries resulting
in changes in scope of consolidation): None
Newly included: – (Company name:)
Excluded:– (Company name:)(2) 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
(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares):
As of February 28, 2021:
157,921,669 shares
As of February 29, 2020:
157,921,669 shares2) Total number of treasury shares at the end of the period:
As of February 28, 2021:
22,322,123 shares
As of February 29, 2020:
22,901,445 shares

3) Average number of shares outstanding during the period:
Fiscal year ended February 28, 2021:
135,420,529 sharesFiscal year ended February 29, 2020:
135,778,721 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2021 (March 1, 2020 - February
28, 2021)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Operating profit
Recurring profit
Net income
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
February 28, 2021
10,167
(3.3)
6,101
2.7
(3,170)–(22,397)–
February 29, 2020
10,519
(2.5)
5,940
(4.7)
4,658 (18.6)(39,297)–

Fiscal year ended
February 28, 2021
February 29, 2020

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

(165.39)(289.42)––(2) Non-consolidated Financial Position
Total assets
Million yen

Net assets

Shareholders’equity ratio

Million yen

As of February 28, 2021
162,749
71,275
As of February 29, 2020
172,806
94,372(Reference) Shareholders’ equity: As of February 28, 2021: 71,136 million yen
As of February 29, 2020: 93,888 million yen

Net assets per share
%

Yen

43.7
54.3

524.61
695.36* These consolidated financial results are outside the scope of audit 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 “Overview of Operating Results,
etc.” on page 2 of the Attachments.

Table of Contents - Attachments
1. Overview of Operating Results, etc. .................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review .................................................. 2(2) Overview of Financial Position for the Fiscal Year under Review ................................................. 3(3) Overview of Cash Flows for the Fiscal Year under Review ............................................................ 3(4) Basic Policy on Shareholder Returns and Dividends for the Fiscal Year under Review and the Next
Fiscal Year ............................................................................................................................................ 4(5) Future Outlook ................................................................................................................................ 4
2. Basic Policy on Selection of Accounting Standards ............................................................................ 4
3. Consolidated Financial Statements and Principal Notes ..................................................................... 5(1) Consolidated Balance Sheets .......................................................................................................... 5(2) Consolidated Statements of Income and Comprehensive Income .................................................. 7(3) Consolidated Statements of Changes in Equity .............................................................................. 9(4) Consolidated Statements of Cash Flows ....................................................................................... 13(5) Notes to Consolidated Financial Statements ................................................................................. 15(Uncertainties of entity’s ability to continue as going concern) ............................................... 15(Significant accounting policies for preparation of Consolidated Financial Statements) ........ 15(Notes when there are significant changes in amounts of shareholders’ equity) ........................... 20(Changes in accounting policies) ................................................................................................ 20(Additional information) ............................................................................................................ 20(Notes to Consolidated Statements of Income) ........................................................................... 20(Notes to Consolidated Statements of Comprehensive Income) .............................................. 21(Notes to Consolidated Statements of Changes in Equity) ........................................................... 22(Notes to Consolidated Statements of Cash Flows) ..................................................................... 24(Segment information, etc.) ...................................................................................................... 24(Per share information) ............................................................................................................. 28(Significant events after reporting period) ............................................................................... 30(Omission of disclosure) .......................................................................................................... 37
4. Others ................................................................................................................................................ 38
Changes in officers ................................................................................................................... 38

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review, the Japanese economy remained in a situation where its outlook is unclear,
due to the impact of events stemming from the global spread of COVID-19, such as the state of emergency inJapan, which has been declared twice, lockdowns in various countries, and negative influence on economic
activities due to bans on overseas travel.
In this harsh management environment, the Company strived to curtail purchasing and reduce fixed
expenses, while steadily implementing measures such as withdrawal from the Italy business, which had been an
unprofitable business, discontinuation of unprofitable brands, and closing of unprofitable stores in Japan andoverseas, as part of the global business reforms that has been conducted since the previous fiscal year.
E-commerce sales grew significantly, increasing by 26% year-on-year, mainly through Onward Crosset, an
online store directly managed by Onward Kashiyama Co., Ltd., which is a core group company, and the LifestyleBusiness also trended strongly. However, the consolidated performance was seriously affected by factors suchas a significant decrease in sales at physical stores including department stores and shopping centers, which arelocated mainly in metropolitan areas, and temporary closures due to lockdowns overseas.
As a result of the above, consolidated net sales amounted to 174,323 million yen (a 29.8% decrease yearon-year), consolidated operating loss amounted to 21,230 million yen (operating loss of 3,061 million yen forthe previous fiscal year), consolidated recurring loss amounted to 20,174 million yen (recurring loss of 3,835
million yen for the previous fiscal year), and loss attributable to owners of parent amounted to 23,181 million
yen (loss attributable to owners of parent of 52,135 million yen for the previous fiscal year).
Furthermore, the Group has adopted EBITDA (operating profit + depreciation and amortization) as amanagement indicator with the purpose of enabling convenient comparisons between companies regardless ofdifferences in accounting standards, amid its efforts to accelerate growth through enhancement and expansion ofbusiness foundations that utilize creation of new businesses, M&A, etc.
EBITDA for the fiscal year under review was (15,343) million yen (5,079 million yen for the previous fiscal
year).
Status by segment is as follows.
[Apparel Business]
In the domestic business, profit increased at companies including Onward Trading Co., Ltd., which conducts a
B2B uniform business, and Tiaclasse Co., Ltd., whose main sales channel is e-commerce. Despite progress in ashift in sales channels to e-commerce such as Onward Crosset, a directly-managed online store, net sales throughphysical sales channels decreased due to the impact of COVID-19, causing both sales and profit to decrease atcompanies including Onward Kashiyama Co., Ltd. As a result, both sales and profit decreased for the domestic
business.
In the overseas business, despite cost reduction effects of the global business reforms which have been
conducted since the previous fiscal year, the impact of COVID-19 continued in Europe and the U.S., causing
both sales and profit to decrease for the overseas business.
As a result, both sales and profit decreased for the Apparel Business as a whole.
[Lifestyle Business]
In the Lifestyle Business, both sales and profit increased at Yamato Co., Ltd., which conducts a gift cataloguebusiness, but sales decreased at companies including Onward Beach Resort Guam, Inc., which conducts a resort
business in Guam where a lockdown has continued since the second quarter.
As a result, both sales and profit decreased for the Lifestyle Business, despite securing an operating profit.

(2) Overview of Financial Position for the Fiscal Year under Review
2

Total assets on a consolidated basis as of the end of the fiscal year under review decreased by 38,264 million yen
compared with the end of the previous fiscal year to 196,052 million yen. This was primarily due to decreases
in cash and deposits of 7,493 million yen, notes and accounts receivable—trade of 7,463 million yen,merchandise and finished goods of 6,823 million yen, buildings and structures of 4,750 million yen, and land of
6,823 million yen.
Liabilities decreased by 3,736 million yen compared with the end of the previous fiscal year to 136,543
million yen. This was primarily due to a decrease in other current liabilities of 11,172 million yen.
Net assets decreased by 34,527 million yen compared with the end of the previous fiscal year to 59,509
million yen. This was primarily due to loss attributable to owners of parent of 23,181 million yen, dividends ofsurplus of 3,240 million yen, a decrease in retained earnings at the beginning of the period due to changes in theaccounting policies of 10,011 million yen, and an increase in valuation difference on available-for-sale securities
and other accounts of 1,905 million yen.
As a result, shareholders’ equity ratio was 28.9%.

(3) Overview of Cash Flows for the Fiscal Year under Review
1) Status of cash flows as of the end of the fiscal year under review
Cash flows used in operating activities amounted to 19,614 million yen (an inflow of 8,003 million yen for theprevious fiscal year) mainly due to a loss before income taxes, an impairment loss, a decrease in trade receivables,
and a decrease in trade payables.
Cash flows provided by investing activities amounted to 6,091 million yen (an outflow of 10,758 million
yen for the previous fiscal year) mainly due to proceeds from sales of property, plant and equipment and sales ofshares of subsidiaries resulting in change in scope of consolidation.
Cash flows provided by financing activities amounted to 5,860 million yen (an outflow of 1,595 million
yen for the previous fiscal year), which primarily included a net increase (decrease) in borrowings and dividends
paid.
As a result, cash and cash equivalents at the end of the fiscal year under review decreased by 7,509 million
yen compared with the end of the previous fiscal year to 21,270 million yen.
2) Indicators related to cash flows
Fiscal year
ended February
28, 2017
Shareholders’
59.8
equity ratio (%)
Shareholders’equity ratio
44.6
based on fairvalue (%)
Ratio ofinterest-bearing
662.2
debt to cash
flow (%)
Interest
16.0
coverage ratio(times)Fiscal year
ended February
28, 2018

Fiscal year
ended February
28, 2019

Fiscal year
ended February
29, 2020

Fiscal year
ended February
28, 2021

59.2

55.1

38.3

28.9

46.8

30.1

30.1

17.4

350.6

1,409.8875.8(461.1)

40.9

12.6

17.4

(46.5)

Shareholders’ equity ratio:
Shareholders’ equity / Total assets
Shareholders’ equity ratio based on fair value: Total market value of shares / Total assets
Ratio of interest-bearing debt to cash flow:
Interest-bearing debt / Cash flow
Interest coverage ratio:
Cash flow / Interest paid
(Note 1) All indicators were calculated using consolidated financial figures.

3

(Note 2)

The total market value of shares was calculated based on the total number of issued shares excluding(Note 3)(Note 4)

Cash flows from operating activities are used.
Interest-bearing debt includes all debt recorded on the Consolidated Balance Sheets for which interest is
paid.

treasury shares.

(4) Basic Policy on Shareholder Returns and Dividends for the Fiscal Year under Review and the Next Fiscal
Year
The Company positions returning profits to its shareholders as one of the most important management measures,with the basic policy to provide stable and appropriate shareholder returns linked to performance.
With regard to dividends for the fiscal year under review, despite the extremely poor performance, theCompany plans to pay out a dividend of 12 yen per share in light of its basic policy regarding dividend policy.
The Company will determine whether to conduct a share buyback by taking into account factors such as its needs
for funds.
The Company will flexibly utilize its internal reserve for strategic investments in the establishment of arobust business structure, enhancement of financial constitution, and other efforts while giving consideration tobalancing its needs for funds.
(5) Future Outlook
For future outlook, please refer to “FY02/21 Results Presentation Supplement” announced today.

2. Basic Policy on Selection of Accounting Standards
In consideration of comparability between each reporting period of Consolidated Financial Statements andcomparability between companies, the Group plans to prepare its Consolidated Financial Statements using theJapanese GAAP for the time being.
The Group plans to appropriately handle the adoption of IFRS (International Financial Reporting Standards)
in consideration of various circumstances in Japan and overseas.

4

3. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Million yen)
As of February 29, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable—trade
Merchandise 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
Accumulated depreciation
Buildings and structures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of February 28, 2021

28,79525,71535,733
2,041
5,448
9,536
(488)
106,782

21,301
18,251
28,909
1,010
4,435
6,829
(277)
80,46074,626(48,288)
26,33842,082
9,756(5,084)
4,671
32,400(22,261)
10,13883,231

57,981(36,392)
21,58835,2599,969(5,618)4,351
26,597(18,725)
7,871
69,0706,127
6,033
12,1605,251
5,416
10,667

13,340
1,612
300
2,704
4,232
10,256(306)
32,142
127,534
234,316

14,312
1,662
440
2,814
7,486
9,429
(292)
35,854
115,592
196,052

(Million yen)
As of February 29, 2020
Liabilities
Current liabilities
Notes and accounts payable—trade
Electronically recorded obligations—operating
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors
Provision for sales returns
Provision for point card certificates
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities for land revaluation
Retirement benefit liability
Provision for retirement benefits for directors andcorporate auditors
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

6

As of February 28, 2021

19,206
13,80844,907
4,452
808
527
835
22
228
886
23,059108,743

20,092
1,864
56,566
5,052
2,040
669
589
25
125
636
11,887
99,54917,028
4,224
1,755
3,723

16,43011,615
761
3,482

233

232

4,570
31,536140,279

4,471
36,993
136,543

30,07950,043
46,338(21,437)
105,023

30,07950,3909,321(20,865)
68,926(4,581)22(9,285)(604)(762)(15,211)484
3,740
94,036234,316(1,939)15(7,864)(1,669)(744)(12,202)138
2,646
59,509196,052

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Rental income from land and buildings
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of salesfloor fixtures, etc.
Foreign exchange losses
Share of loss of entities accounted for using equity
methodRental expenses
Other
Total non-operating expenses
Recurring loss
Extraordinary income
Subsidies for employment adjustment, etc.
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Other
Total extraordinary income
Extraordinary losses
Loss on liquidation of business
Extraordinary loss due to closing and other
Loss on disposal of non-current assets
Impairment loss
Loss on valuation of investment securities
Extra retirement payments
Loss on sales of shares of subsidiaries and associates
Other
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss
Profit attributable to non-controlling interests
Loss attributable to owners of parent

For the fiscal year ended
February 29, 2020
248,233
135,550
112,683
115,744(3,061)For the fiscal year ended
February 28, 2021
174,323
104,601
69,721
90,952(21,230)

45
241
1,288
−
1,235
2,810

55
193
1,434
883
964
3,530

402
398
1

595
213
443

1,390

70

657
734
3,584
(3,835)

519
632
2,474
(20,174)

–

1,696
8,416
8
154
237
10,513

2,827
160

–
–
2,988
3,028

–
403
27,756
1,564
3,598

–
381
36,732(37,579)
1,653
12,202
13,855(51,435)
700(52,135)

7

953
3,893
281
3,299
1,685

–
5,171
614
15,899(25,560)
814(3,706)(2,892)(22,668)513(23,181)

Consolidated Statements of Comprehensive Income(Million yen)

Loss
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, 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 fiscal year ended
February 29, 2020
(51,435)

For the fiscal year ended
February 28, 2021
(22,668)(4,791)(57)(106)(1,506)
(844)

2,642
(7)
1,064
(1,081)
17

(14)

–

* (7,321)(58,757)* 2,635(20,032)(59,454)697(20,529)497

8

(3) Consolidated Statements of Changes in Equity
Fiscal year ended February 29, 2020 (from March 1, 2019 to February 29, 2020)(Million yen)
Shareholders’ equity
Share
capitalBalance as at
March 1, 2019
Changes during
periodDividends ofsurplus
Loss attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Change in scopeof equity method
Change in scopeof consolidation
Net changes in
items other thanshareholders’equityTotal changes in
items during period
Balance as at
February 29, 2020

Capitalsurplus30,079Retainedearnings

50,043

107,139

Treasuryshares(19,833)

Accumulated othercomprehensive income
Deferred
Valuation
Total
gains ordifference onshareholders’losses onavailable-forequity
hedgessale securities
167,429(3,308)(3,308)(52,135)(52,135)(78)(1,757)(1,757)

154

75

221

221

(4,767)(4,767)

(732)

(732)

(1,452)79(3,128)

(57)

–

–

(60,801)(1,603)(62,405)(3,128)(57)

30,07950,043

46,338(21,437)

105,023(4,581)22

9Accumulated other comprehensive income
Total
Foreign
Remeasurements accumulated
Revaluation
currencyof defined
otherreserve for land translation
benefit plans comprehensive
adjustment
incomeBalance as at
March 1, 2019
Changes during
periodDividends ofsurplus
Loss attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Change in scopeof equity method
Change in scopeof consolidation
Net changes in
items other thanshareholders’equityTotal changes in
items during period
Balance as at
February 29, 2020

(8,956)

1,134

81(9,113)

Shareacquisitionrights

Noncontrollinginterests

559

3,336

Total net
assets162,210(3,308)(52,135)(1,757)75
221(4,767)
(732)

(328)

(1,738)(844)(6,097)(75)

404(5,768)(328)(1,738)(844)(6,097)(75)

404(68,173)(9,285)

(604)

(762)

(15,211)

484

3,740

94,036

10

Fiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)(Million yen)
Shareholders’ equity
Share
capitalBalance as at
March 1, 2020
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during
periodDividends ofsurplus
Loss attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders’equityTotal changes in
items during period
Balance as at
February 28, 2021

Capitalsurplus30,07950,043Retainedearnings
46,338Treasuryshares(21,437)(10,011)30,07950,04336,326

Accumulated othercomprehensive income
Deferred
Valuation
Total
gains ordifference onshareholders’losses onavailable-forequity
hedgessale securities
105,023

22(4,581)

22

2,642

(7)

(10,011)(21,437)

95,012(3,240)(3,240)(23,181)(23,181)(225)(4,581)

(0)

(0)

571

345

(356)

(356)

347

347

−

347

(27,005)571(26,085)

2,642

(7)

30,07950,3909,321(20,865)

68,926(1,939)15

11Accumulated other comprehensive income
Total
Foreign
Remeasurements accumulated
Revaluation
currencyof defined
otherreserve for land translation
benefit plans comprehensive
adjustment
incomeBalance as at
March 1, 2020
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during
periodDividends ofsurplus
Loss attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofrevaluation
reserve for land
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders’equityTotal changes in
items during period
Balance as at
February 28, 2021

(9,285)

(604)

(762)

(15,211)

Share
acquisitionrights

Noncontrollinginterests

484

3,740

Total net
assets

94,036(10,011)(9,285)

(604)

(762)

(15,211)

484

3,740

84,025(3,240)(23,181)
(0)
345
(356)

347

1,421

(1,065)

17

3,008

(345)

(1,093)

1,569

1,421

(1,065)

17

3,008

(345)

(1,093)(24,516)(7,864)(1,669)(744)(12,202)

138

2,646

59,50912

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year ended
February 29, 2020
Cash flows from operating activities
Loss before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on disposal of non-current assets
Loss on disposal of salesfloor fixtures, etc.
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of shares of subsidiaries andassociates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of long-term prepaid expenses
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

13

For the fiscal year ended
February 28, 2021

(37,579)
6,392
27,756
1,748
(225)
214
(241)
(286)
402

(25,560)
5,506
3,299
786
(56)
(109)
23
(249)
595

1,390

70

(2,424)
398
(160)
1,564

(8,135)
213
(4)
1,685

−

5,017

540
4,919
(33)
3,587
7,963
322
(459)
(1,678)
1,854
8,003

8,418
6,578
(10,112)(8,538)(20,572)
252
(421)
(743)
1,871
(19,614)(21)
52(5,701)
4,056(2,276)
3,654
(131)
(694)
899

(91)
75
(4,249)17,755
(88)
520
(48)
(276)
687

(8,304)−−(5,612)(2,291)(10,758)(2,581)
6,091

(Million yen)
For the fiscal year ended
February 29, 2020
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting
from change in scope of consolidation
Cash and cash equivalents at end of period

14

For the fiscal year ended
February 28, 2021

(8,043)
16,300(3,986)(1,757)(3,308)(103)(695)(1,595)(498)(4,848)31,237

12,122
10,390(10,292)(0)(3,240)(739)(2,379)5,860
52(7,609)28,7802,391

100* 28,780* 21,270

(5) Notes to Consolidated Financial Statements(Uncertainties of entity’s ability to continue as going concern)
Not applicable.

(Significant accounting policies for preparation of Consolidated Financial Statements)
1. Disclosure of scope of consolidation(1) Number of consolidated subsidiaries and names of major consolidated subsidiaries
Number of consolidated subsidiaries: 63
Names of major consolidated subsidiaries
Onward Kashiyama Co., Ltd.
Onward Trading Co., Ltd.
Chacott Co., Ltd.
Creative Yoko Co., Ltd.
Island Co., Ltd.
Onward International Fashion Co., Ltd.
Yamato Co., Ltd.
Onward Creative Center Co., Ltd.
Kokobuy Co., Ltd.
Onward Italia S.p.A.
Joseph Ltd.
Onward Beach Resort Guam, Inc.
Beginning in the fiscal year under review, Onward Digital Lab Co., Ltd., which had been an unconsolidated
subsidiary, has been included in the scope of consolidation due to its increased materiality. La Maison Moreau
S.A.S., Maison Moreau Japan Co., Ltd., Onward Luxury Group UK Ltd., Onward Luxury Group S.p.A., Onward
Luxury Group S.A.R.L., Onward Luxury Group, Inc., Green Iris Kft., Iris Sud S.R.L., OLG LAB S.R.L.,
Frassineti s.r.l., and Maglificio Erika S.R.L. have been excluded from the scope of consolidation due to sale oftheir shares.
Jil Sander Austria GmbH, Onward Kashiyama Korea Co., Ltd., and Innovate Organics, Inc. have been
excluded from the scope of consolidation because they were liquidated.
(2) Names of major unconsolidated subsidiaries
Bien Co., Ltd.
Reasons for exclusion from scope of consolidation
Unconsolidated subsidiaries have been excluded from the scope of consolidation because they are smallin scale and the effects of their total assets, net sales, profit or loss (amount attributable to the Company’s
share), retained earnings (amount attributable to the Company’s share), etc. on the Consolidated Financial
Statements in the aggregate are not material.
2. Disclosure about application of equity method(1) Number of unconsolidated subsidiaries and associates accounted for using equity method
115Names of major associates accounted for using equity method
Mulberry Japan Co., Ltd.
Gailygren Ltd. has been excluded from the scope of application of equity method because its impact has
diminished.
(2) Names of major unconsolidated subsidiaries and associates not being accounted for using equity method
Bien Co., Ltd.
Reasons for not being accounted for using equity method
Companies not accounted for using equity method have been excluded from the application of equity
method because their effects on consolidated profit or loss, consolidated retained earnings, etc. areinsignificant and immaterial individually or in the aggregate.
(3) The fiscal year-end of Mulberry Japan Co., Ltd. is March 31, and its financial statements prepared on a basis
similar to that for the year-end closing as of December 31 have been used for consolidation purposes.
3. Disclosure about fiscal years, etc. of consolidated subsidiaries
Among the consolidated subsidiaries, companies whose fiscal year-end is different from the consolidated fiscal
year-end are as follows.
(1) Companies with fiscal year-end on November 30
Onward Italia S.p.A.
Joseph Ltd.
20 other companies(2) Companies with fiscal year-end on December 31
Onward Beach Resort Guam, Inc.
J. Press, Inc.
Onward Fashion Trading (China) Co., Ltd.
14 other companies
4. Disclosure of accounting policies(1) Accounting policy for measuring significant assets
1) Accounting policy for measuring securities
Available-for-sale securitiesThose with fair values
Carried at the fair values prevailing at the fiscal year-end date (unrealized gains or losses areincluded as a component of net assets, and cost of sales is computed by the moving-averagemethod).
Those with no fair values
Stated at cost using the moving-average method.
2) Accounting policy for measuring derivatives
Stated at fair value.
163) Accounting policy for measuring inventories
Inventories are measured at cost determined principally by the specific identification method(the balance sheet value is calculated using the inventory write-down method based on decreased
profitability).
(2) Accounting policy for depreciation of significant assets
1) Property, plant and equipment (excluding leased assets)
The Company and its domestic consolidated subsidiaries principally provide depreciation by the
declining-balance method, while overseas consolidated subsidiaries provide depreciation by thestraight-line method. Provided, however, that certain buildings (other than facilities attached tobuildings) acquired on and after April 1, 1998 and facilities attached to buildings and structuresacquired on and after April 1, 2016 are depreciated by the straight-line method.
The useful lives of property, plant and equipment are summarized as follows:
Buildings and structures
3 to 50 years
Other
2 to 20 years
2) Intangible assets (excluding leased assets)
Amortized by the straight-line method. Software costs for internal use are amortized over their
expected useful lives (5 to 10 years) by the straight-line method.
3) Long-term prepaid expenses
Amortized by the straight-line method.
4) Leased assets
Leased assets pertaining to finance lease transactions without transfer of ownership
Depreciated by the straight-line method with the leasing period as the useful life and without
residual value.
(3) Accounting policy for significant provisions
1) Allowance for doubtful accounts
In order to prepare for probable future losses on collection, estimated amount uncollectible isprovided for in accordance with the historical average charge-off ratio in the case of ordinary
receivables. In the case of certain accounts designated as highly doubtful accounts, a specificallowance is provided for based on individual detailed credit analysis.
2) Provision for bonuses
Provision for bonuses is recognized for the estimated amount to provide for payment of bonuses
to employees.
3) Provision for bonuses for directors
The Company and certain of its domestic consolidated subsidiaries recognize provision forbonuses for directors in an estimated amount to provide for payment of bonuses to their directors.
4) Provision for sales returns
The Companies provide for estimated losses based on the actual percentage of sales return inprior years and gross profit margin.
5) Provision for point card certificates
17The provision for point card certificates is provided for future costs arising from the utilizationof points that customers of certain domestic consolidated subsidiaries have earned under the
point service program, which is for sales promotions. Certain domestic consolidated subsidiaries
have reserved an amount considered appropriate to cover possible future utilization of the points
as of the end of the fiscal year under review.
6) Provision for retirement benefits for directors and corporate auditors
Certain domestic consolidated subsidiaries recognize provision for retirement benefits for
directors and corporate auditors in an amount payable as of the end of the fiscal year based oninternal regulations, to provide for payment of retirement benefits for Directors and Audit &Supervisory Board Member.
(4) Accounting policy for retirement benefits
1) Method of allocating estimated retirement benefits to each reporting period
In calculating retirement benefit liability, the method of allocating estimated retirement benefits
to each reporting period up to the end of the fiscal year under review is based on the benefit
formula basis.
2) Accounting policy for actuarial differences and prior service costs
Prior service costs are accounted for as expenses over a certain number of years within the
average remaining years of service of the employees at the time of occurrence (5 to 10 years)
using the straight-line method.
Actuarial differences are accounted for as expenses over a certain number of years within the
average remaining years of service of the employees at the time of occurrence during each fiscal
year (5 to 10 years) using the straight-line method, commencing with the fiscal year following
the one in which they were incurred.
(5) Accounting policy for hedging
1) Accounting policy for hedging
Deferred hedging is applied. However, appropriation procedures are applied to trade payables
and trade receivables denominated in foreign currencies with forward exchange contracts.
2) Hedging instruments and hedge items
The derivatives designated as hedging instruments are principally forward exchange contracts.
The related hedged items are trade payables and trade receivables denominated in foreign
currencies and scheduled transactions.
3) Hedging policy
For the purpose of fixing cash flows denominated in Japanese yen from payables and receivables
denominated in foreign currencies by avoiding the risk of future foreign currency exchange rate
fluctuation in relation to export and import transactions denominated in foreign currencies, theCompany enters into forward exchange contracts based on settlement dates in response to orders
received from and sent to business partners.
4) Evaluation of hedge effectiveness
By setting up forward exchange contracts denominated in the same currencies with the sameamounts and the same due dates to the amounts of orders received and sent denominated inforeign currencies, the Company ensures that the correlation from fluctuations in foreign
currency exchange rates after entering into forward exchange contracts is maintained.
18

(6) Accounting policy for goodwill
Goodwill is evaluated on an individual basis and amortized on a straight-line basis over areasonable number of years within 20 years.
(7) Scope of cash and cash equivalents in Consolidated Statement of Cash Flows
Funds (cash and cash equivalents) in the Consolidated Statement of Cash Flows are composedof cash on hand, bank deposits that can be withdrawn on demand, and short-term investments,
which are highly liquid and readily convertible into cash, with an original maturity of threemonths or less and insignificant risk of changes in value.
(8) Other significant information for preparation of consolidated financial statements
1) Accounting for Japanese consumption taxes
Consumption taxes are accounted for by the tax exclusion method.
2) Application of consolidated taxation system
The Company and certain of its domestic consolidated subsidiaries apply the consolidated
taxation system.

19

(Notes when there are significant changes in amounts of shareholders’ equity)
Subsidiaries that have adopted the International Financial Reporting Standards began applying International
Financial Reporting Standard 16 “Leases” (“IFRS 16”) from the fiscal year under review. The impact of theapplication is as stated in “(Changes in accounting policies).”(Changes in accounting policies)(Application of IFRS 16 “Leases”)
Subsidiaries that have adopted the International Financial Reporting Standards began applying IFRS 16 from thefiscal year under review. Accordingly, lessees of leases now recognize all leases as assets and liabilities in their
Balance Sheets in principle. The application of IFRS 16 has been conducted in accordance with its transitional
treatment, under which the cumulative effects of changes in accounting policies have been recognized in retained
earnings at the beginning of the fiscal year under review.
As a result, for the fiscal year under review, “Other” in property, plant and equipment increased by 77 million
yen, and “Lease obligations” in current liabilities and “Lease obligations” in non-current liabilities increased by
1,193 million yen and 7,624 million yen, respectively. The impact of these changes on the profit or loss for the
fiscal year under review is insignificant.
In addition, the balance of retained earnings at the beginning of the period has decreased by 10,011 million
yen.
(Additional information)(Treatment of tax effect accounting for the transition from the consolidated taxation system to the group tax sharing
system)Regarding the transition into the group tax sharing system established by “the Act for Partial Amendment of the
Income Tax Act, etc.” (Act No. 8 of 2020) and the items for which the single-entity taxation system has beenrevised in conjunction with the transition into the group tax sharing system, the Company and certain consolidated
subsidiaries have not applied the provisions of paragraph 44 of “Implementation Guidance on Tax EffectAccounting” (ASBJ Guidance No. 28, February 16, 2018), in accordance with the solution in paragraph 3 of“Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation
System to the Group Tax Sharing System” (PITF No.39, March 31, 2020). The amounts of deferred tax assets
and deferred tax liabilities are based on the provisions of the tax laws prior to the amendment.
(Notes to Consolidated Statements of Income)In response to the requests from governments and municipalities in relation to COVID-19, many of the stores
located in retail facilities, directly-managed stores, resort facilities, and other locations were temporarily closed
in regions including Japan, North America, and Europe. Fixed expenses (including personnel expenses,
depreciation, and rent expenses) on stores and resort facilities incurred during the periods of closure wererecognized as “Extraordinary loss due to closing and other” in “Extraordinary losses.”20

(Notes to Consolidated Statements of Comprehensive Income)*Notes regarding reclassification adjustments and tax effects relating to other comprehensive income

Valuation difference on available-for-salesecurities:
Amount arising during period
Reclassification adjustment for gain and loss
Amount before income tax effect
Income tax effect
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges:
Amount arising during period
Reclassification adjustment for gain and loss
Amount before income tax effect
Income tax effect
Deferred gains or losses on hedges
Revaluation reserve for land:
Income tax effectRevaluation reserve for land
Foreign currency translation adjustment:
Amount arising during period
Reclassification adjustment for gain and loss
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax:
Amount arising during period
Reclassification adjustment for gain and loss
Amount before income tax effect
Income tax effectRemeasurements of defined benefit plans,
net of tax
Share of other comprehensive income of entities
accounted for using equity method:Amount arising during period
Reclassification adjustment for gain and loss
Share of other comprehensive income ofentities accounted for using equity
methodTotal other comprehensive income

21

For the fiscal year
ended February 29, 2020

(Million yen)
For the fiscal year
ended February 28, 2021

(6,467)
1,601(4,866)
74

1,120
1,652
2,773
(131)

(4,791)

2,642

32
(102)
(70)
13
(57)

22
(32)
(9)
2
(7)

(106)
(106)

1,064
1,064

(1,507)0(1,506)(1,008)(72)(1,081)(1,177)(112)(1,290)
445

(66)
98
31
(13)

(844)

17

(14)
−

−
−

(14)

−

(7,321)

2,635

(Notes to Consolidated Statements of Changes in Equity)
For the fiscal year ended February 29, 2020
1. Notes regarding issued shares
Number of shares at
Increase
Class of shares
beginning of period
Ordinary shares (Shares)−−

Increase

Decrease

157,921,669

2. Notes regarding treasury shares
Number of shares at
Class of shares
beginning of period
Ordinary shares (Shares)

20,052,156

Number of shares at
end of period

Decrease

157,921,669

3,001,709

Number of shares at
end of period

152,420

22,901,445(Outline of reasons for changes)
Major components of the increase are as follows.
1) Increase due to the acquisition of treasury shares by the resolution of the Board of Directors on April 5, 2019:
3,000,000 shares
2) Increase due to the purchase of shares less than one unit: 1,709 shares
Major components of the decrease are as follows.
1) Decrease due to the exercise of stock options: 152,400 shares2) Decrease due to shareholders’ request to buy additional shares to achieve one unit: 20 shares
3. Notes regarding share acquisition rights
CompanynameBreakdown

Reportingcompany

Shareacquisitionrights as
stock
options

Class ofunderlying
sharesNumber of underlying shares (Shares)

Balance at
end ofperiod(Millionyen)

At
beginning of
periodIncrease

Decrease

At end ofperiod

−

−

−

−

484

−

−

−

−

484

−

Total
4. Notes regarding dividends(1) Cash dividends paid
Resolution

Class of shares

May 23, 2019
Annual General
Meeting of
Shareholders

OrdinarysharesTotal cash
dividends(Million yen)

Dividend pershare (Yen)

3,308

24.00

Record date

Effective dateFebruary 28, 2019

May 24, 2019(2) Dividends for which the record date falls in the fiscal year under review, but the effective date falls in the following
fiscal year
Resolution

Class ofsharesTotal cash
dividends(Million yen)

Source ofdividends

Dividend pershare (Yen)Record date

Effective date

May 28, 2020
Annual General
Meeting of
Shareholders

Ordinaryshares3,240

Retainedearnings

24.00

February 29,
2020

May 29, 202022

For the fiscal year ended February 28, 2021
1. Notes regarding issued shares
Number of shares at
Class of shares
beginning of period
Ordinary shares (Shares)

Increase

Decrease−−

Increase

Decrease

157,921,669

2. Notes regarding treasury shares
Number of shares at
Class of shares
beginning of period
Ordinary shares (Shares)

22,901,445

Number of shares at
end of period
157,921,669

1,178

Number of shares at
end of period

580,500

22,322,123(Outline of reasons for changes)
Major components of the increase are as follows.
1) Increase due to the purchase of shares less than one unit: 1,178 shares
Major components of the decrease are as follows.
1) Decrease due to the exercise of stock options: 580,500 shares
3. Notes regarding share acquisition rights
CompanynameBreakdown

Reportingcompany

Shareacquisitionrights as
stock
options

Class ofunderlying
sharesNumber of underlying shares (Shares)

Balance at
end ofperiod(Millionyen)

At
beginning of
periodIncrease

Decrease

At end ofperiod

−

−

−

−

138

−

−

−

−

138

−

Total
4. Notes regarding dividends(1) Cash dividends paid
Resolution

Class of shares

May 28, 2020
Annual General
Meeting of
Shareholders

OrdinarysharesTotal cash
dividends(Million yen)

Dividend pershare (Yen)

3,240

24.00

Record date

Effective dateFebruary 29, 2020

May 29, 2020

(2) Dividends for which the record date falls in the fiscal year under review, but the effective date falls in the following
fiscal year
Resolution

Class ofsharesTotal cash
dividends(Million yen)

Source ofdividend

Dividend pershare (Yen)Record date

Effective date

May 27, 2021
Annual General
Meeting of
Shareholders

Ordinaryshares1,627

Retainedearnings

12.00

February 28,
2021

May 28, 2021

23

(Notes to Consolidated Statements of Cash Flows)* Reconciliation of ending balance of cash and cash equivalents with account balances per Consolidated Balance
Sheets is as follows.
(Million yen)
For the fiscal year
ended February 29, 2020

For the fiscal year
ended February 28, 2021

28,79521,301(15)(31)

28,78021,270Cash and deposits
Time deposits with maturities of morethan three months
Cash and cash equivalents(Segment information, etc.)[Segment information]
1. Summary of reportable segments
The Group’s reportable segments are components for which separate financial information is available andregular evaluation by the Board of Directors is performed to decide how management resources are allocated andto assess performance.
The Group engages in the apparel business (planning, production, and sale of textile products, including
men’s and women’s clothing) and the lifestyle business in Japan and overseas.
The reportable segments of the Group comprise the “Apparel Business,” which is divided geographicallyinto two categories, “Domestic” and “Overseas,” and the “Lifestyle Business.”
The “Apparel Business (Domestic)” operates the apparel business in Japan; the “Apparel Business(Overseas)” operates the apparel business overseas. The “Lifestyle Business” operates businesses including acosmetic business, a wellness business related to ballet and dance and resorts, a pet supply and other business,
and a business related to gifts.
2. Method of calculating net sales, profit or loss, assets, liabilities, and other items by reportable segment
Accounting methods for reportable segments are mostly the same as the accounting methods described in“Significant accounting policies for preparation of Consolidated Financial Statements.”
Profit by reportable segment refers to operating profit. Intersegment sales and transfers are based on market
values.

24

3. Information on net sales, profit or loss, assets, liabilities, and other items by reportable segment
For the fiscal year ended February 29, 2020 (from March 1, 2019 to February 29, 2020)(Million yen)Amountrecorded in
Adjustments Consolidated
Financial(Note 1)
Statements(Note 3)

Apparel BusinessNet sales
Net sales to outside
customers
Intersegment sales ortransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation andamortization (Note 2)
Investments in equitymethod entities
Increases in property, plantand equipment, andintangible assets (Note 2)

LifestyleBusiness

Total(Domestic)(Overseas)

158,954

46,310205,265

42,968248,233−

248,233

1,393

2,499

3,892

2,869

6,762

(6,762)−

160,347
2,514
113,016

48,809(5,940)38,621

209,157(3,425)
151,638

45,8381,553
50,006

254,996(1,872)201,645(6,762)(1,189)32,671

248,233(3,061)
234,316

3,675

943

4,618

1,278

5,896

495

6,392

67

17

84

−

84

−

84

4,943

1,643

6,587

1,466

8,053

1,479

9,533

Total

(Notes) 1. Adjustments consist of the following:(1) The adjustment amount for segment profit (loss) of (1,189) million yen includes amortization of goodwillof (1,748) million yen, elimination of intersegment transactions of 5,138 million yen, and corporate
expenses not allocated to reportable segments of (4,579) million yen. Corporate expenses are mainly
general and administrative expenses that are not attributable to reportable segments.
(2) The adjustment amount for segment assets of 32,671 million yen includes the unamortized balance of
goodwill of 6,127 million yen, elimination of intersegment transactions of (142,557) million yen, andcorporate assets not allocated to reportable segments of 169,101 million yen. Corporate assets are mainly
assets held by the Company, a pure holding company.
2. Depreciation and amortization, and increases in property, plant and equipment and intangible assets
include long-term prepaid expenses (furniture and fixtures).
3. Segment profit (loss) coincides with the amount of operating loss in the Consolidated Statements ofIncome.

25

For the fiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)(Million yen)Amountrecorded in
Adjustments Consolidated
Financial(Note 1)
Statements(Note 3)

Apparel Business
LifestyleBusiness

Total(Domestic)(Overseas)

103,648

35,774

139,422

34,901

174,323−

174,323

1,407

1,329

2,736

2,013

4,750

(4,750)−105,055(13,667)
94,812

37,103(6,497)25,761

142,158(20,165)
120,573

36,914147
44,384179,073(20,017)
164,958(4,750)(1,213)31,094

174,323(21,230)
196,052

3,084

914

3,999

1,009

5,009

497

5,506

12

−

12

−

12

−

12

2,804

1,995

4,799

1,192

5,992

509

6,501

Net sales
Net sales to outside
customers
Intersegment sales ortransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation andamortization (Note 2)
Investments in equitymethod entities
Increases in property, plantand equipment, andintangible assets (Note 2)

Total(Notes) 1. Adjustments consist of the following:(1) The adjustment amount for segment profit (loss) of (1,213) million yen includes amortization of goodwillof (786) million yen, elimination of intersegment transactions of 3,639 million yen, and corporate
expenses not allocated to reportable segments of (4,065) million yen. Corporate expenses are mainly
general and administrative expenses that are not attributable to reportable segments.
(2) The adjustment amount for segment assets of 31,094 million yen includes the unamortized balance of
goodwill of 5,251 million yen, elimination of intersegment transactions of (133,274) million yen, andcorporate assets not allocated to reportable segments of 159,117 million yen. Corporate assets are mainly
assets held by the Company, a pure holding company.
2. Depreciation and amortization, and increases in property, plant and equipment and intangible assets
include long-term prepaid expenses (furniture and fixtures).
3. Segment profit (loss) coincides with the amount of operating loss in the Consolidated Statements ofIncome.

[Information associated with reportable segments]
For the fiscal year ended February 29, 2020 (from March 1, 2019 to February 29, 2020)

1. Information for each product or service
Descriptions are omitted as similar information is disclosed in Segment information.
2. Information for each region(1) Net sales(Million yen)Japan

Europe198,070

Other
29,983

Total
20,17926

248,233

(2) Property, plant and equipment(Million yen)
Japan

U.S.
68,088Europe
9,357

Other

Total

4,335

1,448

83,231

3. Information for each of main customers
Information is not stated as there are no parties whose net sales to outside customers comprise 10% or more of
net sales in the Consolidated Statements of Income.
For the fiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)

1. Information for each product or service
Descriptions are omitted as similar information is disclosed in Segment information.
2. Information for each region(1) Net sales(Million yen)Japan

Europe139,861

Other

Total

23,83910,622

174,323(2) Property, plant and equipment(Million yen)
Japan

U.S.
57,834

Europe
7,762

Other
1,881

Total
1,592

69,0703. Information for each of main customers
Information is not stated as there are no parties whose net sales to outside customers comprise 10% or more of
net sales in the Consolidated Statements of Income.
(Disclosure of impairment loss on non-current assets for each reportable segment)
For the fiscal year ended February 29, 2020 (from March 1, 2019 to February 29, 2020)(Million yen)
Apparel Business(Domestic)
Impairment loss

3,136(Overseas)

Total

5,260

8,397

LifestyleBusiness
8,259

Unallocatedamounts andelimination
11,099Total
27,756

For the fiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)(Million yen)
Apparel Business(Domestic)
Impairment loss

1,385(Overseas)

Total

1,003

2,389

27

LifestyleBusiness
910

Unallocatedamounts andelimination
−

Total
3,299

(Amortization and unamortized balance of goodwill for each reportable segment)
Descriptions are omitted as similar information is disclosed in Segment information.
(Information about gain on bargain purchase for each reportable segment)
Not applicable.
(Per share information)

Net assets per share (Yen)For the fiscal year
ended February 29, 2020
665.17For the fiscal year
ended February 28, 2021
418.32

Basic loss per share (Yen)(383.97)(171.18)−−

Diluted earnings per share (Yen)(Notes) 1. Diluted earnings per share are not stated because the Company recorded a basic loss per share,

although dilutive shares exist.
2. The basis for the calculation of basic loss per share and diluted earnings per share is as follows:
For the fiscal year
For the fiscal year
Item
ended February 29, 2020
ended February 28, 2021
Basic loss per share
Loss attributable to owners of parent(Million yen)

(52,135)(23,181)−−

Loss attributable to owners of parent
relating to ordinary shares(Million yen)

(52,135)(23,181)

Average number of ordinary shares
during the period (Thousand shares)

135,778

135,420

Adjustments to profit attributable toowners of parent (Million yen)−−

Increase in number of ordinary shares(Thousand shares)−−[Of which, share acquisition rights(Thousand shares)]

[−]

[−]

Outline of residual shares not included in
the calculation of diluted earnings per
share due to not having a dilutive effect−−Components not pertaining to ordinary
shareholders (Million yen)

Diluted earnings per share

28

3.

The basis for the calculation of net assets per share is as follows:
For the fiscal year
Item
ended February 29, 2020

For the fiscal year
ended February 28, 2021

Total net assets (Million yen)

94,03659,509Amount deducted from total net assets(Million yen)

4,224

2,785

[Of which, share acquisition rights(Million yen)]

[484]

[138]

[Of which, non-controlling interests(Million yen)][3,740][2,646]

Net assets relating to ordinary shares at endof period (Million yen)

89,812

56,723

Number of ordinary shares at end of periodused for the calculation of net assets per
share (Thousand shares)

135,020

135,599

29

(Significant events after reporting period)(Transfer of non-current assets)
At the Board of Directors’ meeting held on March 11, 2021, the Company made a resolution on transferring noncurrent assets of the Company’s consolidated subsidiaries.
1. Reasons for transfer
Seeking to streamline assets and enhance financial constitution
2. Details of assets for transfer
1) Nakamura-ku, Nagoya-shi; land and a building
Name of asset
Nakamura-ku, Nagoya-shi
Land and a building

Address and details of asset

Current state

4-1107 Meiekiminami, Nakamura-ku, Nagoya-shi, Aichi
Area of the land: 3,158.01m2

OfficeTotal floor area of the building: 16,227.29m2* Projected gain on the transfer is approximately 3.5 billion yen, which is estimated by deducting the carrying
amount of 2.8 billion yen and various expenses related to the transfer from the transfer price of 6.5 billion yen.
2) Shibuya-ku; land and buildings
Name of asset
Shibuya-ku
Land and buildings

Address and details of asset

Current state

1-34-6 and 1-34-24 Jinnan, Shibuya-ku, Tokyo
Area of the land: 246.65m2

Store and officeTotal floor area of the buildings: 1,675.56m2* The Company refrains from disclosing the transfer price and the carrying amount in accordance with theconfidentiality agreement with the transferee. Projected gain on the transfer is approximately 1.3 billion yen,which is estimated by deducting the carrying amount and various expenses related to the transfer.
3. Outline of transferees
1) Nakamura-ku, Nagoya-shi; land and a building(1) Name

Sumitomo Realty & Development Co., Ltd.

(2) Address

Shinjuku NS Building, 2-4-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo(3) Title and name of representative

Kojun Nishima, Executive Managing Director and President

2) Shibuya-ku; land and buildings
The Company refrains from disclosing the details in accordance with the confidentiality agreement with thetransferee.
* There are no capital relationships, personnel relationships, transactional relationships, or matters of note as
related parties between the transferee and the Company.

30

4. Outline of consolidated subsidiaries
1) Nakamura-ku, Nagoya-shi; land and a building(1) Name

Onward Kashiyama Co., Ltd.

(2) Address

3-10-5 Nihonbashi, Chuo-ku, Tokyo(3) Title and name of representative

Tsunenori Suzuki, Representative Director and President(4) Business description

Planning, production, and sale of menswear, womenswear, children’s clothing,accessories, etc.

(5) Share capital

100 million yen

2) Shibuya-ku; land and buildings(1) Name

Excel Co., Ltd.

(2) Address

1-20-8 Jinnan, Shibuya-ku, Tokyo(3) Title and name of representative

Koji Watanabe, Representative Director and President(4) Business description

Real estate rental business(5) Share capital

80 million yen

5. Dates for transfer
1) Nakamura-ku, Nagoya-shi;

2) Shibuya-ku;

land and a building

land and buildings(1) Date of resolution at the Board of Directors’ meeting

March 11, 2021

March 11, 2021

(2) Date of execution of the agreement

March 11, 2021

March 11, 2021

(3) Date of handover of the property

March 31, 2021

March 11, 2021

6. Impact on performance
Gain on transfer of approximately 4.8 billion yen associated with the transfer of the said non-current assets isplanned to be recognized in extraordinary income as “Gain on sales of non-current assets” of the consolidated
results for the first quarter of the fiscal year ending February 28, 2022.

31

(Change in a consolidated subsidiary (share transfer))
At the Board of Directors’ meeting held on March 5, 2021, the Company made a resolution on transferring all of
the shares in Jil Sander S.p.A. held by Onward Italia S.p.A., the Company’s consolidated subsidiary.
Due to this share transfer, Jil Sander S.p.A. will be excluded from the Company’s consolidated subsidiaries.
1. Reasons for share transfer
The Company, in order to respond to the rapid and significant changes in the management environment, has
worked on the selection and concentration of its businesses by withdrawing from unprofitable businesses andreducing the scales thereof, as stated in “Announcement on Implementation of Global Business Reforms,” atimely disclosure made as of October 4, 2019.
Recently, the management environment of the overseas business, mainly in Europe, has deteriorated further
on account of the impact of the global spread of COVID-19, which in turn has also seriously affected theperformance of the Group.
Under such circumstances, after considering a variety of options for the future vision of the European
business, the Company determined that withdrawing from the Jil Sander S.p.A. business, which has been
unprofitable, and transferring its shares to a third party is the best decision from the perspective of the Group’s
global business reforms. Accordingly, the Company has decided to transfer all of the shares in Jil Sander S.p.A.
held by Onward Italia S.p.A.
As stated in “Announcement on Change in a Consolidated Subsidiary (Share Transfer),” a timely disclosure
made as of December 11, 2020, the Company conducted a transfer of shares in Onward Luxury Group S.p.A. In
addition to that transfer, by conducting this share transfer, the Company will reorganize businesses that have been
unprofitable and further facilitate the concentration of management resources into growing fields, thereby
accelerating the enhancement of the Group’s corporate value by improving and enhancing its financial
constitution through stabilization of earnings base.

32

2. Outline of the subsidiary to be changed(1) Name

Jil Sander S.p.A.

(2) Address

Foro Buonaparte 71, 20121 Milano, Italy(3) Title and name of representative

Axel Keller, Representative Director(4) Business description

Planning and sale of Jil Sander brand products(5) Share capital

24,650 thousand euro(6) Date of establishment

October 19, 2018(7) Major shareholders andOnward Italia S.p.A.; 100%

shareholding ratio(8) Relationship between the listed

Capital relationship

The said company is the Company’s consolidated subsidiary.

company and the said company

Personnel relationshipThree employees of the Company have been appointed
Directors of the said company.

Transactional relationship

There are no direct transactional relationships.
(The Company provides services to Onward Italia S.p.A., theparent company of the said operating company, in relation to
management guidance and administration.)(9) Operating results of the said company for the past three years
Fiscal year ended

February 28, 2018

February 28, 2019

Net sales (Thousand euro)−

048,600Operating profit (Thousand euro)−(3)(17,824)

Net income (Thousand euro)−(3)(22,748)

33

February 29, 2020

3. Name of the reportable segment in which the said subsidiary is included in the disclosure of segment information
Apparel Business (Overseas)
4. Outline of the counterparty in the share transfer(1) NameOTB S.p.A.

(2) Address

Via Dell’Industria 2, Breganze (Vicenza), Italy(3) Title and name of representative

Renzo Rosso, Representative Director(4) Business description

A holding company in fashion business(5) Share capital

25,000 thousand euro(6) Date of establishment

December 7, 1981

(7) Net assets

884,356 thousand euro(8) Total assets

1,833,885 thousand euro(9) Relationship between the listed

Capital relationship

There are no capital relationships of note between the Company

company and the said company

and the said company.
Personnel relationship

There are no personnel relationships of note between the
Company and the said company.

Transactional relationship

There are no transactional relationships of note between the
Company and the said company.

5. Transfer price and status of shares held before and after the transfer(1) Shareholding ratio before the transfer

Shareholding ratio: 100%

(2) Shareholding ratio to be transferred

Shareholding ratio: 100%

(3) Transfer price for the shares

The Company refrains from disclosing the transfer price on account of theconfidentiality stipulated in the share transfer agreement.

(4) Shareholding ratio after the transfer

Shareholding ratio: 0%

6. Schedule(1) Date of resolution by the Board of Directors

March 5, 2021

(2) Date of execution of the agreement

March 5, 2021

(3) Date of implementation of the share transfer

April 2021 (planned)

7. Impact on performance
The impact of this share transfer is planned to be recognized in the fiscal year ending February 28, 2022.
The impact on the performance for the fiscal year ending February 28, 2022 is currently being examined.

34

(Change in a consolidated subsidiary (share transfer))
At the Board of Directors’ meeting held on March 26, 2021, the Company made a resolution on transferring allof the shares in Freeland s.r.l. held by Onward Italia S.p.A., the Company’s consolidated subsidiary.
Due to this share transfer, Freeland s.r.l. will be excluded from the Company’s consolidated subsidiaries.
1. Reasons for share transfer
The Company, in order to respond to the rapid and significant changes in the management environment, has
worked on the selection and concentration of its businesses by withdrawing from unprofitable businesses andreducing the scales thereof, as stated in “Announcement on Implementation of Global Business Reforms,” atimely disclosure made as of October 4, 2019.
Recently, the management environment of the overseas business, mainly in Europe, has deteriorated further
on account of the impact of the global spread of COVID-19, which in turn has also seriously affected theperformance of the Group.
Under such circumstances, after considering a variety of options for the future vision of the European
business, the Company determined that withdrawing from the Freeland s.r.l. business and transferring its sharesto a third party is the best decision from the perspective of the Group’s global business reforms. Accordingly, theCompany has decided to transfer all of the shares in Freeland s.r.l. held by Onward Italia S.p.A.
As stated in “Announcement on Change in a Consolidated Subsidiary (Share Transfer),” timely disclosures
made as of December 11, 2020 and March 5, 2021, the Company made resolutions on transfers of shares in
Onward Luxury Group S.p.A. and Jil Sander S.p.A. In addition to these transfers, by conducting this share transfer,
the Company will complete the series of business reforms in Italy.
Through the global business reforms which have been conducted continuously since the previous fiscal year,
the Company will reorganize businesses that have been unprofitable and further facilitate the concentration ofmanagement resources into growing fields, thereby accelerating the enhancement of the Group’s corporate value
by improving and enhancing its financial constitution through stabilization of earnings base.

35

2. Outline of the subsidiary to be changed(1) Name

Freeland s.r.l.

(2) Address

Via G da Verrazzano 4/6/8, 50054, Fucecchio Firenze, Italy(3) Title and name of representative

Claudio Tiezzi, Representative Director(4) Business description

Production and sale of athletic shoes for luxury brands(5) Share capital

20,000 thousand euro(6) Date of establishment

May 29, 2000

(7)

Major

shareholders

andOnward Italia S.p.A.; 60%

shareholding ratio(8) Relationship between the listed

Capital relationship

The said company is the Company’s consolidated subsidiary.

company and the said company

Personnel relationshipThree employees of the Company have been appointed
Directors of the said company.

Transactional relationship

There are no direct transactional relationships.
(The Company provides services to Onward Italia S.p.A., theparent company of the said operating company, in relation to
management guidance and administration.)(9) Operating results of the said company for the past three years
Fiscal year ended

February 28, 2018

February 28, 2019

February 29, 2020

Net sales (Thousand euro)

56,741

66,61952,385

Operating profit (Thousand euro)

10,476

12,0409,666

Net income (Thousand euro)

6,219

7,849

6,078

3. Name of the reportable segment in which the said subsidiary is included in the disclosure of segment information
Apparel Business (Overseas)36

4. Outline of the counterparty in the share transfer(1) Name

FREE S.r.l.

(2) Address

Via Giovanni da Verrazzano n. 4/6/8, Fucecchio Firenze, Italy(3) Title and name of representative

Gabriella Pantani, Representative Director(4) Business description

Investing in companies and organizations(5) Share capital

1,010 thousand euro(6) Date of establishment

February 16, 2020

(7) Net assets

40,000 thousand euro(8) Total assets

53,300 thousand euro(9) Relationship between the listed

Capital relationship

There are no capital relationships of note between the Company

company and the said company

and the said company.
Personnel relationship

There are no personnel relationships of note between the
Company and the said company.

Transactional relationship

There are no transactional relationships of note between the
Company and the said company.

5. Transfer price and status of shares held before and after the transfer(1) Shareholding ratio before the transfer

Shareholding ratio: 60%(2) Shareholding ratio to be transferred

Shareholding ratio: 60%(3) Transfer price for the shares

The Company refrains from disclosing the transfer price on account of theconfidentiality stipulated in the share transfer agreement.

(4) Shareholding ratio after the transfer

Shareholding ratio: 0%

6. Schedule(1) Date of resolution by the Board of Directors

March 26, 2021

(2) Date of execution of the agreement

March 26, 2021

(3) Date of implementation of the share transfer

March 29, 2021

7. Impact on performance
The impact of this share transfer is planned to be recognized in the fiscal year ending February 28, 2022.
The impact on the performance for the fiscal year ending February 28, 2022 is currently being examined.
(Omission of disclosure)
Disclosure of notes regarding leases, transactions with related parties, tax effect accounting, financial instruments,
securities, derivatives, retirement benefits, share options, etc., business combinations, asset retirement obligations,and real estate for lease, etc. have been omitted because disclosing the information in the consolidated financial
results is considered to have little materiality.

37

4. Others
Changes in officers
Other changes in officers (as of May 27, 2021)
Candidate for new Director
Name

Position and responsibility- Independent Outside Director and Audit & Supervisory
Current

Committee Member of SHIFT Inc.
- Outside Director of Ishii Food Co., Ltd.

Kenji Chishiki- Outside Director of the Company
New- Independent Outside Director and Audit & Supervisory
Committee Member of SHIFT Inc.
- Outside Director of Ishii Food Co., Ltd.

38