FY2022(March 2022 – February 2023)

Results Presentation Material

April 6, 2023
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Onward Group’s Raison d’Être

Copyright © ONWARD HOLDINGS CO., LTD.

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

12

Contents

01

Consolidated Financial Results and

Copyright © ONWARD HOLDINGS CO., LTD.

Performance Forecasts Highlights© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

23

02
03
04
05
06
07 Financial Situation
08

P. 3

FY2022 Consolidated Financial Results

P. 7

FY2023 Consolidated Performance Forecasts

P.12

TopicsP.18

Sustainable Management

P.25

Work Style Design Project

P.27

Data Book

P.29

P.33

01
Consolidated Financial Results and

Copyright © ONWARD HOLDINGS CO., LTD.

Performance Forecasts Highlights© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

34

FY2022 Consolidated Financial Results Highlights

Net Sales

176.1

billion yen+7.6 billion yen YoY

Operating Profit

Recurring Profit

Net Profit

5 . 2 billion yen

5 . 3 billion yen

3 . 1 billion yen+6.3 billion yen YoY+4.8 billion yen YoY-5.5 billion yen YoY

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Consolidated net sales for FY2022 increased 7.6 billion yen from the previous
fiscal year, due to a clear recovery of our key brands business centered on
Onward Kashiyama, and strong sales at stores that implemented the “Click &Try” OMO service.

◼ Along with the global business reforms, thorough inventory control and discountsales reduction measures, etc. contributed to improving gross profit margin(from 52.0% to 54.9%) and the SG&A expenses ratio steadily (52.7% to 52.0%).
◼ As a result, profits at all levels including operating profit returned to profitability.
Net profit decreased owing to the specific factor of recording a massive gainfrom the sale of real estate in FY2021.

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

4

FY2023 Performance Forecasts Highlights
Net Sales

Operating Profit

Recurring Profit

Net Profit

185.0 billion yen

7.0 billion yen

6.3 billion yen

4.0 billion yen+8.9 billion yen YoY+1.8 billion yen YoY+1.0 billion yen YoY+0.9 billion yen YoY

Copyright © ONWARD HOLDINGS CO., LTD.

◼ For FY2023, we expect to achieve consolidated net sales of 185.0 billion yen, up 8.9
billion yen year on year due to favorable outlook for domestic apparel, domestic lifestyleand overseas businesses.
◼ Gross profit margin is forecast to further improve from 54.9% to 55.4% and the SG&A
ratio is expected to decline from 52.0% to 51.6%, thanks to discount sales reduction
measures, as well as increased net sales. Thus, operating profit is forecast to reach 7.0
billion yen, up 1.8 billion yen year on year, and net profit is estimated to increase to 4.0
billion yen, up 0.9 billion yen year on year.
◼ As a result, operating profit for FY2023 is expected to be the highest in the last 10 years
including FY2023 since FY2014.

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

5

Operating Profit Trend （Last 10 Fiscal Years）◼ Operating profit for FY2023 is expected to be the highest in the last 10 years including
FY2023 since FY2014.

（Billion yen）

7.0
5.73

45億円
3.78

5.17
5.17

5.21
5.21
4.46

4.20

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- 1.08- 3.06- 20.17
FY2014FY2015FY2016FY2017© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
6

FY2018FY2019FY2020

FY2021

FY2022

FY2023(Forecast)

02

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022 Consolidated Financial Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

78

FY2022 Consolidated Financial Results◼ Net sales increased to 176.1 billion yen, up 7.6 billion yen from the previous fiscal year.
◼ Operating profit was a positive 5.2 billion yen, up 6.3 billion yen from the previous fiscal year.
◼ EBITDA.reached10.4 billion yen, up 6.5 billion yen from the previous fiscal year.

FY2021

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

FY2022Full-Year% of Sales

Full-Year% of Sales

Change% of Change

Change in% of Sales

1

Net Sales

168,453-

176,072-＋7,619

+4.5%

-

2

Gross Profit

87,61252.0%

96,75154.9%＋9,139+10.4%

+2.9%

3

SG&A
Expenses

88,691

52.7%

91,53752.0%＋2,846

+3.2%

-0.7%

4

Operating
Profit-1,079

-

5,214

3.0%

＋6,293

5

Recurring
Profit

507

0.3%

5,319

3.0%

＋4,812+949.1%+2.7%

6

Net Profit

8,566

5.1%

3,061

1.7%

-5,505-64.3％-3.4%

7

EBITDA*

3,915

2.3％

10,373

5.9%+6,458+164.9%+3.6%*Note: EBITDA = operating profit + depreciation and amortization.

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

8

YoY

FY2022 Net Sales & Operating Profit by Segment◼ The domestic apparel business posted higher sales, and operating profit entered the black.
The lifestyle business recorded growth in net sales and operating profit.
◼ For overseas businesses, though net sales decreased due to the withdrawal from the
Italian business, operating profit/loss improved.
YoY

FY2021

FY2022
Change(Million yen)

120,516

128,672+8,156

Operating Profit-1,254

5,014+6,268Net Sales

37,90538,779

+874

+2.3%

2,598

2,727

+129

+5.0%

158,421

167,451+9,030

+5.7%

1,344

7,741

+6,397+476.0%17,83815,254-2,584-14.5%

-679

-876

-197

1,750

1,996

+246

-814

-214

+600

Net Sales

19,58817,250-2,338Operating Profit-1,493-1,090+403

168,453

176,072+7,619-1,0795,214+6,293

Net Sales

1

2

ApparelLifestyleOperating Profit
Net Sales

3

Domestic Total
Operating Profit
Net Sales

4

ApparelOperating Profit
Net Sales

5

Lifestyle

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Operating Profit

6

Overseas Total
Net Sales

7

Consolidated Total
Operating Profit

Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 7 other companies; 11 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato, and 7 other companies; 10 companies in total)
Overseas Apparel (8 companies in the JOSEPH Group, J.PRESS, Onward Fashion Trading, and 8 other companies; 18 companies in total)
Overseas Lifestyle (FREED OF LONDON and 3 other companies; 4 companies in total)
The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

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

9% of Change+6.8%+14.1%-11.9%+4.5%

FY2022 Net Sales & Operating Profit by Company◼ Net sales increased by 7.6 billion yen YoY, contributed by a 9.7 billion yen increase at Onward
Kashiyama and other factors.
◼ Operating profit/loss returned to the black due to factors such as 6.4 billion yen in operating profit/loss
improvement at Onward Kashiyama.
YoY

FY2021

FY2022
Change(Million yen)

1

Net Sales
Operating Profit
Net Sales

2

Onward Trading

3

Island4Chacott

5

Creative Yoko

6

Yamato7

Copyright © ONWARD HOLDINGS CO., LTD.

Onward Kashiyama + HD

Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit

Domestic Subtotal

Net Sales(Excl. Onward Kashiyama + HD)

Operating Profit
Net Sales

8

Europe9America

10

Asia

11

Overseas Subtotal

12

Consolidated Total

Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit

91,395-1,857
14,760
1,788
5,753
-124
8,311
332
5,194
319
20,326
1,280
67,0263,201
13,182-156
1,202-1,1555,204-182
19,588-1,493
168,453-1,079101,109
4,524
13,650
1,021
6,285
80
8,849
342
5,801
419
20,6291,489
66,342
3,217
9,960
-136
1,636
-576
5,654
-378
17,250-1,090176,072
5,214+9,714+6,381-1,110
-767
+532
+204
+538
+10
+607
+100
+303
+209
-684
+16
-3,222
+20
+434
+579
+450
-196
-2,338+403+7,619+6,293© Copyright 2007-2015
ONWARDHOLDINGS
CO.,LTD.
Note: The segment
breakdown
is calculatedusing simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

10% of Change+10.6%-7.5%-42.9%
+9.2%
+6.5%
+3.0%
+11.7%+31.3%+1.5%+16.3%-1.0%+0.5%-24.4%+36.1%+8.6%-11.9%+4.5%

FY2022 Net Sales by Channel◼ Net sales at physical stores total (department stores, shopping centers and other) increased by
8.4% YoY.
◼ E-commerce sales increased by 9.5% YoY. The e-commerce ratio and the directly managed ecommerce ratio remained at a high level at 30% and 85.9%, respectively.

(Million yen)

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1

Onward Kashiyama

Shopping
Centers andOtherPhysicalStores Total

Directly
Managed ECommerce

Other ECommerce
Platforms

E-Commerce
Total

Total Sales

E-Commerce
Ratio

39,83232,404

72,23625,175

3,698

28,873

101,109

28.6%

87.2%

2

% of sales

39.4%

32.0%

71.4%

24.9%

3.7%

28.6%

100.0%

3

YoY+17.9%+6.0%+12.3%+4.5%+24.9%+6.8%+10.6%

-1.0%

-1.9%

4

Eight Domestic
Subsidiaries Using ECommerce*

9,797

22,60432,401

13,3202,605

15,92548,326

33.0%

83.6%

5

Total Domestic
Subsidiaries Using ECommerce

46,62955,008104,637

38,4956,303

44,798

149,435

30.0%

85.9%

6

% of sales

33.2%

36.8%

70.0%

25.8%

4.2%

30.0%

100.0%

7

YoY+16.4%

+2.1%

+8.4%

+8.8%

+14.1%

+9.5%

+8.7%

+0.2%

-0.6%

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

11

Directly
Managed ECommerce
Ratio

Department
Stores

03

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

13
12

FY2023 Consolidated Performance Forecasts◼ Gross profit margin is expected to improve by 0.5 pp from FY2022 to 55.4%.
◼ SG&A expense ratio is forecast to lower 0.4 pp from FY2022 to 51.6%.
◼ EBITDA is estimated to increase 1.7 billion yen from FY2022 to 12.1 billion yen.
FY2022

Copyright © ONWARD HOLDINGS CO., LTD.

(Million yen)

FY2023Full-Year% of Sales

Full-Year% of Sales

Change% of Change

Change in% of Sales

1

Net Sales

176,072-

185,000-＋8,928

+5.1%

-

2

Gross Profit

96,751

54.9%

102,400

55.4%＋5,649

+5.8%

+0.5%

3

SG&A
Expenses

91,53752.0%

95,40051.6%＋3,863

+4.2%

-0.4%

4

Operating
Profit

5,214

3.0%

7,000

3.8%

＋1,786+34.3%+0.8%

5

Recurring
Profit

5,319

3.0%

6,300

3.4%

＋981

+18.4%+0.4%

6

Net Profit

3,061

1.7%

4,000

2.2%

+939

+30.7％+0.5%

7

EBITDA*

10,373

5.9%

12,1006.5%+1,727+16.6%+0.6%*Note: EBITDA = operating profit + depreciation and amortization.

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

13

YoY

FY2023 Forecast of Net Sales and Operating Profit by Segment◼ For domestic business, the apparel business is expected to increase net sales by 4.9% and operating
profit by 36.1%. Lifestyle business is forecast to expand net sales by 7.0% and operating profit by 8.3%.
◼ Overseas business is estimated to improve net sales by 8.0% and operating profit/loss by 0.7 billion yen.

YoY
FY2022

FY2023
Change(Million yen)

128,672

134,967+6,295

+4.9%

5,014

6,824

+1,810+36.1%

38,77941,501+2,722

+7.0%

2,727

2,952

+225

+8.3%

167,451

176,468+9,017

+5.4%

7,741

9,776

+2,035+26.3%Net Sales

17,25018,631+1,381+8.0%

Operating Profit-1,090-382+708

176,072

185,000+8,928

+5.1%

5,214

7,000

+1,786+34.3%Net Sales

1

ApparelOperating Profit
Net Sales

2LifestyleOperating Profit
Net Sales

3

Domestic Total
Operating Profit

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4

Overseas Total

Net Sales

5

Consolidated Total
Operating Profit

Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 7 other companies; 11 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato, and 6 other companies; 9 companies in total)
Overseas (8 companies in the JOSEPH Group, J.PRESS, Onward Fashion Trading, and 12 other companies; 22 companies in total)
Note: The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

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

14% of Change

FY2023 Forecast of Net Sales and Operating Profit by Company◼ Although overseas businesses as a whole will remain in the red, the European business is
expected to return to the black as a result of the JOSEPH Group's turnaround.

YoY

FY2022(Million yen)

1
2

Onward Trading

3

Island4Chacott

5

Creative Yoko

6

Yamato7
Copyright © ONWARD HOLDINGS CO., LTD.

Onward Kashiyama + HD

ChangeNet Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit

Domestic Subtotal

Net Sales(Excl. Onward Kashiyama + HD)

Operating Profit

8

Europe9America

10

Asia

11

Overseas Subtotal

12

Consolidated Total

FY2023

Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit
Net Sales
Operating Profit

101,109
4,524
13,650
1,021
6,285
80
8,849
342
5,801
419
20,6291,489
66,342
3,217
9,960
-136
1,636
-576
5,654
-378
17,250-1,090176,072
5,214

105,179
4,961
14,676
1,137
6,565
207
9,410
435
6,028
476
21,721
1,650
71,2894,815
10,476
97
1,459
-237
6,696
-242
18,631-382
185,000
7,000% of Change+4,070+437+1,026
+116
+280
+127
+561
+93
+227
+57
+1,092+161+4,947+1,598
+516
+233
-177
+339
+1,042+136+1,381+708+8,928+1,786© Copyright 2007-2015
HOLDINGS
CO.,LTD.
Note: TheONWARD
segment breakdown
is calculatedusing simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

15

+4.0%
+9.7%
+7.5%
+11.4%+4.5%+158.8%+6.3%+27.2%+3.9%+13.6%+5.3%+10.8%+7.5%+49.7%+5.2%-10.8%+18.4%+8.0%+5.1%+34.3%

Shareholder Returns◼ In line with the Company’s policy of strengthening shareholder returns, the annual
dividend per share is expected to be 14 yen, an increase of 2 yen from theprevious fiscal year.

▍Dividends Policy
The Company views the appropriate distribution of profits to shareholders as a key
management issue, and sets a dividend payout ratio target of 35%, ensuring stable
and appropriate distribution of profits in conjunction with its performance.

▍Dividends

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FY2022

億円

Dividends per Share (yen)12

14

Total Dividends (mil. yen)

1,628

1,900

Net Profit (mil. yen)

3,061

4,000

Payout Ratio

53.2%

47.5%

●●
億円

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

16

FY2023●● (forecast)Investments in Personnel
In light of the ever-increasing importance of human resources as a management resource, in
FY02/23, we will improve salaries and establish a new shopmeister system .

▍Salary Improvements
Salary improvements for FY2023 are planned to be a 6.7% increase from theprevious year.

Copyright © ONWARD HOLDINGS CO., LTD.

▍Establishment of the Shopmeister System
A new system was established to allow highly skilled sales personnel who havereached the retirement age of 60 to continue working as ‘shopmeisters’ withappropriate compensation over the long term.

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

17

04
Topics
1. OMO Strategy
2. Apparel Business

Copyright © ONWARD HOLDINGS CO., LTD.

3. Lifestyle Business© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

19
18

.

１．OMO Strategy◼ Number of Onward Kashiyama stores implementing its “Click & Try” OMO service increased to 340.

◼ Number of items reserved for “Click & Try” expanded from 55,000 in 1H to 116,000 in 2H, reaching 171,000 in FY2022.
◼ Net sales level of existing stores offering the OMO service recovered to the FY2019 level, 19 pp higher than 81% of

stores that don’t offer the service.
▍Trends in number of stores offering Click & Try
Ratio of stores offering
Click & Try

23％
200

▍Net Sales: FY2022 versus FY2019

43％
340
stores100％

81％

storesEnd of February-22

116,000
66,000＋19pp
End of February-23

Offered at 40%+ of Onward Kashiyama stores; Further
expansion is planned

Non-Click& 55,000
TrystoresClick &
Try
stores

29,000

Copyright © ONWARD HOLDINGS CO., LTD.

▍Items reserved for Click & Try service

116,000
Click & Try service boosted net sales significantly

55,000First Half of 2022

Second Half of 2022

The use of Click & Try spiked in 2H
Reservations in 2H doubled from the 1H reaching© Copyright 2007-2015
ONWARD
CO.,LTD.
171 thousandon HOLDINGS
a full-year basis

19

２．Apparel Business : Key Brands Strategy

Nijyusanku 【Onward Kashiyama】◼ A large increase in sales of Nijyusanku, Onward Kashiyama’s

biggest brand, led the recovery of the brand business.
◼ Expanded product lineup to meet demand of those who started
working at offices or going out resulted in an increase in customer
unit price.
◼ Expanded use of Click & Try increased sales opportunities.
Full-Year Sales
(YoY)

+

23.4%

Jiyuku 【Onward Kashiyama】◼ Along with growth of physical

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Sales increased at

department stores andother real stores.
◼ Customer unit priceincreased, contributed byincreased product types
with sophisticated taste.

Full-Year Sales
(YoY)

+

13.3%

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

20

ICB 【Onward Kashiyama】
stores, reserve & buy
increased due to the
expansion of EC sites.
◼ Net sales were stable dueto the shift to increasing thetypes of lineups andvariations.
Full-Year Sales
(YoY)

+

14.2%

２．Apparel Business : D2C Brands Strategy
UNFILO 【Onward Kashiyama】

uncrave 【Onward Kashiyama】◼ Sales increased significantly due to the launch of long-◼ As for “uncrave,” a D2C brand that is mainly sold atselling hit (Saiai jogging pants, Georgette Jersey gilet,etc.) Started men's and unisex line in full scale in thefall and winter of 2022.

the E-commerce market and has expanded its
customer contacts with the use of POPUP andsocial media, sales are strong in top & bottom sets
made from select materials, knitwear, shirts, andblouses.

Copyright © ONWARD HOLDINGS CO., LTD.

◼ “steppi by UNFILO,” environmental-conscious, highfunctional and sustainable shoes made with recycledmaterial to a maximum extent, received 2022 Good
Design Award.

◼ The follower counts largely increased due to the

Full-Year Sales

Full-Year Sales

(YoY)

+

96.3%

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

21

referrals spread by influencers via social media.
Wholesale orders are also strong from in FY2022.

(YoY)

+

17.0%

２．Apparel Business : Customized Products Strategy

KASHIYAMA【Onward Personal Style 】◼ Net sales of directly managed stores increased 17% fromFY2021. Along with directly managed stores, the operationof FC stores has also been accelerated.
◼ Sales of formal wears released in 2H are strong. The lineup

includes a truly black-dyed fabric sold at a reasonable price.
◼ The KASHIYAMA Kichijoji store will relocate to an area

Copyright © ONWARD HOLDINGS CO., LTD.

where many select shops and cafes are located (April 1,2023). It will be revamped as one of the largest stores inTokyo to present the brand's world view to a wide rangeof customers, including business people and students
who visit the store.

Full-Year Sales
(YoY)

+

14.4%

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

22

３．Lifestyle Business
Chacott◼ Sales of mainstay ballet, fitness and “Chacott

COSMETICS” products returned to the FY2019 level.
◼ Sales of “Chacott BALANCE,” a balance wear thatstraightens human body to the core both physically andmentally, rose sharply by 38% from FY2019.
◼ In March 2023, the Company launched a renewed “Photo

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Shooting” service, a photo art service that includes
Chacott ballet costumes for stage and competition, a fullfledged ballet makeup by makeup artists, and photo shootby professional photographers.

Full-Year Sales
(YoY)

+

6.5%

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

23

３．Lifestyle Business
Creative Yoko
◼ Net sales of the pet business and the Sirotan business increased 14% and 8% year on year,

respectively, contributed by the measures of opening physical stores.
◼ In January 2023, “Sirotan Friends Park,” a specialty shop of an original character Sirotan, opened at

the Haneda Airport Garden.
◼ In February 2023, “PET PARADISE,” a shop specializing in pet goods, opened at Harajuku Takeshita

Copyright © ONWARD HOLDINGS CO., LTD.

Street.

Full-Year Sales
(YoY)

+

11.7%

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

24

05
Copyright © ONWARD HOLDINGS CO., LTD.

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

26
25

Sustainable Management

Onward Holdings / Onward Kashiyama
Launched the “Green Onward” Project to Promote Evolved Sustainable
Management

Overview of “Green Onward” Project• Onward Green Campaign has focused onreusing collected clothing in producing
blankets, work gloves and solid fuels.

• The next step is to launch "Upcycle Action"■ Thoughts on the Green Onward logo

Copyright © ONWARD HOLDINGS CO., LTD.

The initial letter “G” of “Green” is deformed into

a rotating arrow, and when it overlaps with the“O” of “Onward,” the image of “infinite
circulation” is created. It represents theforward-looking attitude and futuristic nature of
the Onward Group’s sustainable management.

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

26

that aims to utilize unwanted clothing tocreate new value.
• Onward Kashiyama will start with “Upcycle
Action,” another phase of Onward Green
Campaign, which is evolved in both quality
and quantity.

06
Copyright © ONWARD HOLDINGS CO., LTD.

Work Style Design Project© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

28
27

Promotion of Work Style Design◼ Promoting Work Style Design, a project to improve our workstyles, with the aim ofenhancing operational efficiency and productivity by achieving a better work-lifebalance.
Overtime Hours•

Copyright © ONWARD HOLDINGS CO., LTD.

•

Through the promotion of activities
centered around the so-called "Kaeru
Kaigi" meetings, at which we consider
what needs to be done to improve ourwork styles, we achieved a 52.5%
reduction in average overtime hours permonth in FY02/22 compared to FY02/18
and an increase of 4.4 days in holidays
taken per year.

In addition, training programs toencourage employees to take childcare
leave and the establishment of the"Guidebook for Supporting Balance
Between Work and Childcare" have been
implemented, and as a result, the ratio ofmale employees taking childcare leave
reached 60%, approximately four times
the national average.

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

28

17.7 Hours

52.5%
Reduction

Number of Paid Leave Days
Taken
4.4 Days123.4Days
Increase
119.0 Days

8.4 Hours

FY2018FY2022FY2018FY2022% of Male Employees Taking
Paternity Leave
Over Four Timethe National
Average

60.0％Comparison between theprevious year (FY2018) when"Work Style Design" waslaunched and FY2022.

7.7％

FY2018(Note) The national average"ratio of male employees taking
childcare leave" in FY2021 was
13.97%.
FY2022

07
Copyright © ONWARD HOLDINGS CO., LTD.

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

30
29

Consolidated Balance Sheet◼ Net assets increased to 85.0 billion yen, up 7.8 billion yen from the end of FY2021.
◼ Shareholders’ equity ratio increased to 47.0％ billion yen, up 4.6 pp from the end of FY2021.
◼ Current ratio increased to 117.2%, up 8.7 pp from the end of FY2021, further improving management stability.

▍Net Assets▍Shareholder's equity ratio
47.0%+4.6 pp+7.8
billion yen

85.0

42.4%

billionyen

End-FY2021

End-FY2022

850

77.2

▍Current ratio

Copyright © ONWARD HOLDINGS CO., LTD.

billionyen

117.2%

772+8.7 pp108.5%
End-FY2021

End-FY2022© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

30

End-FY2021

End-FY2022

EBITDA/Cash Flows▍EBITDA◼ EBITDA expanded significantly to

10.3 billion yen, up 6.4 billion yen
from FY2021.

+6.4
billion yen

10.3
billion yen

3.9
billion yen

FY2021

FY2022▍Cash Flows◼ Cash flows from operating activities amounted to 5.6 billion yen due to
Copyright © ONWARD HOLDINGS CO., LTD.

a return to the black for operating profit/loss.
◼ Cash flows from investing activities amounted to 4.3 billion yen due tothe sale of the hotel business in Guam.
◼ Free cash flow (operating cash flow + investing cash flow) amounted

to 10.0 billion yen.

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

31

Capital Expenditures/Depreciation and Amortization▍Capital Expenditures◼ Capital expenditures decreased by 0.8 billion

5.7
billion yen

yen from the previous fiscal year to 4.9 billion.

●●
41

4.9

billion yen
億円yen
billion◼ Capital investments in factories in Dalian andother locations were completed in the previous
FY2021.
◼

During the fiscal year under review,
investments were carefully selected andeffectively implemented, including DX, OMO
and other areas.

FY2021

FY2022

4.6
35

billion yen▍Depreciation and Amortization

Copyright © ONWARD HOLDINGS CO., LTD.

◼ Depreciation and amortization were

4.3 billion yen, down 300 million fromFY2021.

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

32

billion yen
億円

4.3
33
億円

FY2021

FY2022

08
Copyright © ONWARD HOLDINGS CO., LTD.

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

34
34
33

FY2022 Full-Year Net Sales & Operating Profit
Increases/Decreases by Company(Billion yen)

▍Net Sales
+9.7

+0.5

+0.5

+0.6

+0.3

176.1
-1.5

-1.1

+0.4

+0.5

+0.9

(＋7.6)

Consolidated
elimination

FY2022
Full year

-3.2
168.5

FY2021
Full year

OnwardKashiyama +HD

OnwardTradingIslandChacott

Creative
Yoko

YamatoOtherdomestic
businesses

Europe+0.3+0America

Asia▍Operating Profit
+0.2

+6.4

+0

+0.1

+0.2

5.2

+0.5

(＋6.3)-0.2

Copyright © ONWARD HOLDINGS CO., LTD.

-0.8

-1.1
FY2021
Full year

OnwardKashiyama +HD

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

34

-0.5

Creative
Yoko

YamatoOtherdomestic
businesses

EuropeAmerica

Asia

Consolidated
elimination

FY2022
Full year

FY2022 Full-Year: Breakdown of SG&A Expenses,
Non-Operating Profit/Loss and Extraordinary Profit/Loss (Consolidated)(Million yen)

1

2

Rent

35,312
23,277

3

Transportation

4

Promotion andAdvertising

4,778

Depreciation

3,461

5

Copyright © ONWARD HOLDINGS CO., LTD.

Personnel

FY2021

6,195

YoY(% of Change)

FY202235,036-0.8%

24,499

+5.3%

6,238
5,505
3,595

+15.2%

10

Non-Operating Profit-59.7%

1,392

233-83.3%

99

789+697.0%

1,013

134

-86.8%

Subsidy income

14

Other

917

220

-76.0%

15

Non-Operating Loss

1,836

1,274

-30.6%

16

Interest expenses

391

363

-7.2%

17

Share of loss of entities
accounted for using equity
method73

46-37.0%

18

Other

1,370

863

-37.0%

1,587

106-93.3％

21,3271,878-91.2%

17,92121-99.9％

105

527+401.9%

2,944

1,300

-55.8%

16,664

+6.4%

19

7

Total SG&A
Expenses

88,691

91,537+3.2%

20

Extraordinary Profit

8

Extraordinary
Loss Adjustment

1,620

9

(Reference)
Effective SG&A
Expenses

23

Gain on sales of non-current
assetsGain on sales of investment
securities
Gain on sales of shares ofsubsidiaries and associates

24

Other

356

29

-91.9%

25

Extraordinary Loss

7,921

3,388

-57.2%

21

+1.4%

1,380

13

15,66891,542

3,423

Foreign exchange gains

Other

90,311

YoY(% of Change)

12

+3.9%

-99.7%FY2022

Interest income

65

FY2021

11

Total Non-Operating
Profit/Loss© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

35

+0.7%

(Million yen)

22

26

Loss due to closing and other

1,620

5

-99.7%

27

1,829

-

-

28

Loss on sales of shares ofsubsidiaries and associates
Loss on liquidation ofsubsidiaries and associates

1,968

-

-

29

Impairment loss

1,741

2,906

-66.9%

30

Other

761

475

-37.6%

13,406-1,510-31

Extraordinary Profit/LossEnd-FY2022 Consolidated Balance SheetFY2021

FY2022
Change(Billion yen)

1
2

Total Assets
Current Assets

End

157.7

159.1

+1.4

60.5

62.2

+1.7

3

Cash and Deposits

15.2

13.8

-1.4

4

Accounts
Receivable-trade

14.2

13.9

-0.3

5

Inventory

26.8

30.7

+3.9

97.2

96.9

-0.3

6

Non-current Assets

7

Property, Plant andEquipment

58.0

53.1

-4.9

8

Intangible Assets

9.3

9.1

-0.2

9

Investments andOther Assets

29.8

34.7

+4.9

80.4

74.1

-6.3

10

Copyright © ONWARD HOLDINGS CO., LTD.

End

Total Liabilities

Increase in purchases to expand sales

Sale of Guam hotel

Increase in investment securities due to revaluation

11

Accounts Payabletrade

18.2

21.4

+3.2

Increase in purchases to expand sales

12

Borrowings

35.1

27.2

-7.9

Repayment of debt

13

Other

27.1

25.5

-1.6

77.2

85.0

+7.8

14

Total Net Assets

15

Shareholder’s Equity
Ratio

42.4%

47.0%

+4.6%

16

Current Ratio

108.5%

117.2%+8.7%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

36

Reasons for change

FY2023 Consolidated Performance Forecast

First Half
(Million yen)

FY2023

ChangeFY2022

FY2023

Change% ofChangeFY2022

FY2023

Change% ofChangeNet Sales

82,166

86,200+4,034+4.9%

93,90698,800+4,894+5.2%

176,072

185,000+8,928+5.1%

2

Gross Profit

44,73547,600+2,865+6.4%

52,01654,800+2,784+5.4%

96,751

102,400+5,649+5.8%（% of Sales）(54.4%)(55.2%)(+0.8%)(55.4%)(55.5%)(-0.1%)(54.9%)(55.4%)

SG&A Expenses

44,542

46,600+4.6%

46,99548,800+3.8%

91,537

95,400（% of Sales）(54.2%)(54.1%)(-0.1%)(50.0%)(49.4%)(-0.6%)(52.0%)(51.6%)

193

1,000

+418.1%

5,021

6,000

+19.5%

5,214

7,000

(0.2%)(1.2%)(+1.0%)(5.3%)(6.1%)(+0.8%)(3.0%)(3.8%)

4

Operating Profit（% of Sales）+2,058+807+1,805+979(+0.5%)+3,863+4.2%(-0.4%)+1,786+34.3%(+0.8%)

5

Recurring Profit

654

700

+46

+7.0%

4,665

5,600

+935

+20.0%

5,319

6,300

+981

+18.4%

6

Net Profit

476

1,400

+924

+194.1%

2,585

2,600

+15

+0.6%

3,061

4,000

+939

+30.7%

7

EBITDA※

2,838

3,600

+762

+26.8%

7,535

8,500

+965

+12.8%

10,373

12,100+1,727+16.6%*Note: EBITDA = operating profit + depreciation and amortization.

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

37

% of
ChangeFull-Year

1

3

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022

Second HalfFY2023 Forecast of Net Sales & Operating Profit by Segment

First Half

2

3

4

Copyright © ONWARD HOLDINGS CO., LTD.

5

Apparel

FY2023

Change% ofChangeFY2022

FY2023

Change% ofChangeFY2022

FY2023

Change% ofChangeNet Sales

59,70463,086+3,382+5.7%

68,96871,881+2,913+4.2%

128,672

134,967+6,295+4.9%

Operating
Profit

484

1,179

+695

+143.6%

4,530

5,645

+1,115+24.6%

5,014

6,824

+1,810 +36.1%

Net Sales

19,155

20,267+1,112+5.8%

19,624

21,234+1,610+8.2%

38,77941,501+2,722+7.0%

Operating
Profit

1,484

1,645

+161

+10.8%

1,243

1,307

+64

+5.1%

2,727

2,952

+225

+8.3%

Net Sales

78,85983,353+4,494+5.7%

88,592

93,115+4,523+5.1%

167,451

176,468+9,017+5.4%

Operating
Profit

1,968

2,824

+856

+43.5%

5,773

6,952

+1,179+20.4%

7,741

9,776

+2,035+26.3%Net Sales

7,733

7,886

+153

+2.0%

9,517

10,745+1,228+12.9%

17,25018,631+1,381+8.0%

Operating
Profit-1,132

-810

+322

42

428

+386

+919.0%-1,090-382+708

Net Sales

82,166

86,200+4,034+4.9%

93,90698,800+4,894+5.2%

176,072

185,000+8,928+5.1%

Operating
Profit

193

1,000

+807

+418.1%

5,021

6,000

+979

+19.5%

5,214

7,000

+1,786+34.3%

LifestyleDomestic Total

Overseas Total

Consolidated Total

Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 7 other companies; 11 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato, and 6 other companies; 9 companies in total)
Overseas (8 companies in the JOSEPH Group, J.PRESS, Onward Fashion Trading, and 12 other companies; 22 companies in total)
Note: The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

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

38

Full-YearFY2022(Million yen)

1

Second HalfFY2023 Forecast of Net Sales & Operating Profit by Company
First Half

1

2

3

4

5

6

7

8

Copyright © ONWARD HOLDINGS CO., LTD.

9

FY2023

FY2022(Million yen)

Change% ofChangeFY2022

FY2023Full-Year

Change% ofChangeFY2022

FY2023

Change% ofChangeNet Sales

46,05548,740+2,685+5.8%

55,05456,439+1,385+2.5%

101,109

105,179+4,070+4.0%

Operating
Profit

332

475

+143

+43.1%

4,192

4,486

+294

+7.0%

4,524

4,961

+437

+9.7%

Net Sales

6,865

6,935

+70

+1.0%

6,785

7,741

+956

+14.1%

13,65014,676+1,026+7.5%

Operating
Profit

523

537

+14

+2.7%

498

600

+102

+20.5%

1,021

1,137

+116

+11.4%Net Sales

2,970

3,171

+201

+6.8%

3,315

3,394

+79

+2.4%

6,285

6,565

+280

+4.5%

Operating
Profit

22

89

+67

+304.5%

58

118

+60

+103.4%

80

207

+127

+158.8%Net Sales

4,714

4,913

+199

+4.2%

4,135

4,497

+362

+8.8%

8,849

9,410

+561

+6.3%

Operating
Profit

342

392

+50

+14.6%

0

43

+43

342

435

+93

+27.2%Net Sales

2,562

2,715

+153

+6.0%

3,239

3,313

+74

+2.3%

5,801

6,028

+227

+3.9%

Operating
Profit

108

115

+7

+6.5%

311

361

+50

+16.1%

419

476

+57

+13.6%Net Sales

10,106

10,722

+616

+6.1%

10,523

10,999

+476

+4.5%

20,62921,721+1,092+5.3%

Operating
Profit

703

841

+138

+19.6%

786

809

+23

+2.9%

1,489

1,650

+161

+10.8%

Domestic Subtotal

Net Sales

32,804

34,613+1,809+5.5%

33,53836,676+3,138+9.4%

66,342

71,289+4,947+7.5%(Excl. Onward
Kashiyama + HD)

Operating
Profit

1,636

2,349

+713

+43.6%

1,581

2,466

+885

+56.0%

3,217

4,815

+1,598+49.7%Net Sales

4,244

4,419

+175

+4.1%

5,716

6,057

+341

+6.0%

9,960

10,476

+516

+5.2%

Operating
Profit

-514

-473

+41

378

570

+192

+50.8%

-136

97

+233

Net Sales

759

724

-35

877

735

-142

-16.2%

1,636

1,459

-177

Operating
Profit

-407

-206

+201

-169

-31

+138

-576

-237

+339

Net Sales

2,730

2,743

+13

2,924

3,953

+1,029

5,654

6,696

+1,042

Operating
Profit

-211

-131

+80

-167

-111

+56

-378

-242

+136

Net Sales

7,733

7,886

+153

9,517

10,745+1,228+12.9%

17,25018,631+1,381

Operating
Profit-1,132

-810

+322

42

428

+386

+919.0%-1,090-382+708

Net Sales

82,166

86,200+4,034+4.9%

93,90698,800+4,894+5.2%

176,072

185,000+8,928+5.1%

Operating
Profit

193

1,000

+807

+418.1%

5,021

6,000

+979

+19.5%

5,214

7,000

+1,786+34.3%

Onward Kashiyama + HD

Onward Trading

IslandChacott

Creative Yoko

YamatoEuropeAmerica

10

Asia

11

Overseas Subtotal

12

Consolidated Total

-4.6%

+0.5%

+2.0%

+35.2%

Note: The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.

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

39

Second Half

-10.8%+18.4%+8.0%

FY2023 Performance Forecasts by GroupFirst Half
(Million yen)

Onward Kashiyama+ HD

Domestic Subtotal(Excl. Onward Kashiyama + HD)

Overseas Subtotal

Copyright © ONWARD HOLDINGS CO., LTD.

FY2022

FY2023

Second Half

ChangeFY2022

FY2023Full-Year

Change% ofChangeFY2022

FY2023

Change% ofChange1

Net Sales

46,05548,740+2,685+5.8%

55,05456,439+1,385+2.5%

101,109

105,179+4,070+4.0%

2Gross Profit

27,15828,812+1,654+6.1%

32,91033,991+1,081+3.3%

60,06862,803+2,735+4.6%(% of Sales)(59.0%)(59.1%)(+0.1%)(59.8%)(60.2%)(+0.4%)(59.4%)(59.7%)

SG&A Expenses

26,82628,337(% of Sales)(58.2%)(58.1%)

332

475(% of Sales)(0.7%)(1.0%)

1

Net Sales

32,804

34,613

2

Gross Profit

16,156

17,356(% of Sales)(49.3%)(50.1%)

SG&A Expenses

14,52015,007(% of Sales)(44.3%)(43.4%)

3

4

3

Operating Profit

Operating Profit

1,636

2,349

(% of Sales)(5.0%)(6.6%)

1

Net Sales

7,733

7,886

2

Gross Profit

3,161

3,296

(% of Sales)(40.9%)(41.8%)

4,293

4,106

(55.5%)(52.1%)-1,132

-810

-

-

4

3

SG&A Expenses(% of Sales)

4

Operating Profit(% of Sales)+1,511+5.6%

28,71829,505(-0.1%)(52.2%)(52.3%)+43.1%

4,192

4,486

(+0.3%)(7.6%)(7.9%)+1,809+5.5%

33,53836,676+1,200+7.4%

16,36018,436(+0.7%)(48.8%)(50.3%)+3.4%

14,77915,970(-0.9%)(44.1%)(43.5%)

+143

+487

+713

+43.6%

1,581

2,466

(+1.8%)(4.7%)(6.7%)

+153

+2.0%

9,517

10,745

+135

+4.3%

4,391

4,616

(+0.9%)(46.1%)(43.0%)

-4.4%

4,349

4,188

(-3.4%)(45.7%)(39.0%)

-187

+322

Calculated using
simple sums.
© CopyrightNote:2007-2015
ONWARDHOLDINGS CO.,LTD.

40

% of
Change42428(0.4%)(4.0%)+787(+0.3%)+2.7%

55,544

57,842(+0.1%)(54.9%)(55.0%)

+7.0%

4,524

4,961

(+0.3%)(4.5%)(4.7%)+3,138+9.4%

66,342

71,289+4,947+7.5%+2,076+12.7%

32,51635,792+3,276+10.1%(+1.5%)(49.0%)(50.2%)+8.1%

29,29930,977(-0.6%)(44.2%)(43.5%)+294+1,191+885+2,298+4.1%(+0.1%)

+437

+9.7%
(+0.2%)(+0.7%)+1,678+5.7%(-0.7%)+56.0%

3,217

4,815

(+2.0%)(4.8%)(6.8%)+1,228+12.9%

17,25018,631+1,381

+8.0%

+225

+5.1%

7,552

7,912

+360

+4.8%

(-3.1%)(43.8%)(42.5%)

-3.7%

8,642

8,294

(-6.7%)(50.1%)(44.5%)+919.0%-1,090-382(+3.6%)

-

-

-161

+386

+1,598+49.7%(+2.0%)(-1.3%)-348-4.0%(-5.6%)+708

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.