FY02/22 Results
Presentation
Supplement

Chacott DAIKANYAMA, opened on March 12, 2022

April 7, 2022
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

Hello, I’m Michinobu Yasumoto, president and CEO of Onward Holdings Co., Ltd. Thank you all very muchfor taking the time to join us today for this briefing on our financial results for the fiscal year ended
February 28, 2022. I’ll be basing my briefing on our Results Presentation Supplement.
First, please look at Page 2 of the supplement.

Contents

FY02/22 Results・Consolidated Results
・Results by Segment
・Results by Group Company

2
4
5

FY02/23 Forecasts
・Consolidated Results
・Results by Segment
・Results by Group Company

Financial Situation
Early Adoption of the New Revenue Recognition Standard
DATA BOOK

7
9
10
12
14
15

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

1

FY02/22 Results© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

FY02/22 Consolidated Results① Consolidated net sales for FY02/22 were 168.5 billion yen, down 8.5% YoY. As a result of particularly solid performance inthe Lifestyle business and Customization business, net sales of existing businesses increased 13.9% YoY, excluding
discontinued businesses such as the Europe businesses.

e-commerce sales were 43.1 billion yen, a 6.3% increase YoY. Contributing to these results were the strong② Consolidated
performance of the new D2C brand business, as well as a decline in losses associated with out-of-stock items, resulting
from the full-fledged operation of the centralized inventory management system for e-commerce and physical stores.

③ Consolidated operating profitability improved 19.1 billion yen YoY, resulting in an overall operating loss of 1.1 billion yen.
As a result of business reforms, the gross profit margin increased by 8.2% while the SG&A expense ratio decreased by
2.0%.

④ While overseas businesses such as the Guam Resort business posted a 1.5 billion yen operating loss, domestic

businesses achieved a return to profitability with operating profit of 1.3 billion yen. The domestic lifestyle business inparticular posted an operating profit of 2.6 billion yen, an almost threefold increase YoY.

⑤ However, factors such as the sharp drop in footfall resulting from the spread of the Omicron variant starting from midJanuary this year caused net sales to be 6.1 billion yen lower and operating profit 2.1 billion yen lower than the 4Q
forecast figures.

⑥ Recurring profit returned to the black at 0.5 billion yen, mainly due to an increase in subsidy income, and net profit was

8.6 billion yen, mainly due to the gain on sales of non-current assets. EBITDA returned to profitability with 3.9 billion yen.

⑦ Net assets increased by 17.7 billion yen YoY to 77.2 billion yen due to the liquidation of non-current assets and more
efficient fund management. The shareholders' equity ratio also increased by 13.5% YoY to 42.4%, representing asignificant improvement to the soundness of the balance sheet.

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

2

This page summarizes the main points of our full-year results. I’ll go over these points first in order to provide an overview.
Point (1) is that consolidated net sales were ¥168.5 billion, down 8.5% year on year. We applied the new revenue recognition standard startingfrom the fiscal year ended February 28, 2022, and the figures for the previous fiscal year in this supplement have also been adjusted tofacilitate comparisons. For this reason, the year-on-year comparisons in the supplement differ from the figures disclosed in our summary offinancial results. Meanwhile, the impact of our discontinuation of businesses such as our European businesses, as part of our global businessreforms, has been quite significant. Discontinuation of the business in Italy alone resulted in a decline in sales of more than ¥20 billion. If we
exclude these discontinued businesses, net sales on a continuing existing business base increased 13.9% year on year.
Point (2) is that our consolidated e-commerce sales, which we have been focusing our efforts on, increased 6.3% year on year to reach ¥43.1
billion. We also saw strong performance from our new D2C brand businesses such as “uncrave”. Thanks to the full-fledged launch ofoperations of our centralized inventory management system for both e-commerce and physical stores during the fiscal year ended February
28, 2022, we saw large reductions in e-commerce losses due to out-of-stock items. All of these factors contributed to sales growth.
Point (3) is that consolidated operating profitability improved by ¥19.1 billion year on year to reduce operating loss to ¥1.1 billion. The grossprofit margin increased by 8.2pt while the SG&A expense ratio decreased by 2pt, due to the positive impacts of our business reforms.
Point (4) is that, looking at results by segment, overseas businesses such as the Guam resort business posted a ¥1.5 billion operating loss, butdomestic businesses achieved a return to profitability with a ¥1.3 billion operating profit. Results for our domestic Lifestyle businesses wereparticularly strong, with an operating profit of ¥2.6 billion, roughly 3 times higher year on year.
Point (5) is that customer footfall decreased sharply from mid-January 2022 due to the spread of the Omicron variant. As a result, net sales
were ¥6.1 billion below the forecast figure for the fourth quarter, while operating profit was ¥2.1 billion below forecast. We were anticipating¥1 billion in operating profit, but due to the spread of the Omicron variant, operating loss reached ¥1.1 billion.
Point (6) is that recurring profit returned to profitability at ¥500 million due in part to an increase in subsidy income. Net profit also returnedto the black at ¥8.6 billion, due in part to gain on sales of non-current assets. EBITDA also returned to the black at ¥3.9 billion.
Lastly, point (7) is that net assets increased by ¥17.7 billion year on year to ¥77.2 billion, due in part to the liquidation of non-current assets
and improved cash management efficiency. The shareholders’ equity ratio also increased by 13.5pt year on year to reach 42.4%. We have set
the appropriate shareholders’ equity ratio range at between 40% and 50%, and it has finally recovered to that range. We believe that thesesignificant improvements to balance sheet soundness will lay a foundation for our growth strategies for this fiscal year and beyond.

FY02/22 Consolidated Results

Previous fiscal year’s figures adjusted to reflect changes in revenue recognition standard*1
1H
FY02/221

2

3

4

FY02/212H
ChangeYoY

FY02/22

FY02/21(Million yen)

Full year
ChangeYoY

FY02/22

FY02/21*2

Unadjusted

ChangeYoY

FY02/21Net sales

80,78584,897-4,112

95.2%

87,66899,154-11,486

88.4%

168,453

184,051-15,598

91.5%

175,899

Gross Profit

41,01838,713+2,305106.0%

46,594

41,816+4,778111.4%

87,61280,529+7,083108.8%

70,702(% of Sales)

50.8%

45.6%

+5.2%

53.1%

42.2%

+10.9%

52.0%

43.8%

+8.2%

SG&A Expenses

44,312

49,692-5,38044,37951,010-6,631

87.0%

88,691

100,702-12,01188.1%

90,876

89.2%

40.2%

(% of Sales)

54.9%

58.5%

-3.6%

50.6%

51.4%

-0.8%

52.7%

54.7%

-2.0%

Operating Profit-3,294-10,979+7,685-2,215-9,194+11,409--1,079-20,173+19,094--20,173

51.7%

-

-

+12,089-507-20,174+20,681--20,174

-

-

2.5%

-

5

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

3,369-8,720

6

Net Profit

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

1,118-7,993+9,111-

8,566-23,181+31,747--23,181

7

EBITDA*3-687-7,989+7,302-

4,602-6,144+10,746-

3,915-14,133+18,048--14,133(% of Sales)-

1. Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.
Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard. Adjustments: +8,152 million yen for sales, +9,826 million yen for gross profit and SG&A expenses.
2. Unadjusted figures for FY02/21 correspond to the FY02/21 figures as shown in Consolidated Financial Results for the Fiscal Year Ended February 28, 2022.
3. EBITDA = operating profit + depreciation and amortization.

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

3

Page 3 shows the consolidated results for profit and loss, which I have just discussed. Please refer to them forfurther details.

FY02/22 Results by Segment(Million yen)
1H
FY02/22
1
2
3
4
5

D
o
m
e
s
t
i
c

7
8
9
10
11

O
v
e
r
s
e
a
s

13
14

FY02/22

FY02/21

ChangeYoY

FY02/22

FY02/21

ChangeYoY

57,039-1,11998.0%

64,59663,861+735

101.2%

120,516

120,900-384

Operating Profit-3,331-7,573+4,242-

2,077-5,684+7,761--1,254-13,257+12,003-

Net Sales

17,82316,094+1,729110.7%

20,082

18,780+1,302106.9%

37,90534,874+3,031108.7%

99.7%

Operating Profit

1,191

144

+1,047827.1%

1,407

753

+654

186.9%

2,598

897+1,701

289.6%Net Sales

73,74373,133+610

100.8%

84,67882,641+2,037102.5%

158,421

155,774+2,647101.7%

Domestic Total
Operating Profit-2,140-7,429+5,289-3,484-4,931+8,415-

1,344-12,360+13,704-

Net Sales

10,75015,732-4,982

68.3%

7,088

21,741-14,653

32.6%

17,83837,473-19,635

47.6%

Operating Profit-244-2,624+2,380--435-3,574+3,139--679-6,198+5,519-Net Sales

730

1,486

-756

49.1%

1,020

619

+401

164.8%

1,750

2,105

-355

83.1%

ApparelLifestyleOperating Profit
Net Sales

Overseas Total

-424

-158

-266

-

-390

-361

-29

-

-814

-519

-295

-

11,48017,218-5,738

66.7%

8,108

22,360-14,252

36.3%

19,58839,578-19,990

49.5%

-668

-2,782+2,114--825-3,935+3,110--1,493-6,717+5,224-

Net Sales

80,78584,897-4,112

95.2%

87,66899,154-11,486

88.4%

168,453

184,051-15,598

91.5%

Operating Profit-3,294-10,979+7,685-2,215-9,194+11,409--1,079-20,173+19,094-

Operating Profit

Consolidated Total

YoY

55,920Lifestyle

12

ChangeFull year

Net Sales

Apparel6

FY02/212H

Note: The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.
Note: Full year: December−November for Europe, and January−December for Asia and North America
Note: Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.
Note: Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 10 other companies; 14 companies in total)
Overseas Apparel (8 companies in the JOSEPH Group, J.PRESS, Onward Fashion Trading and 8 other companies; 18 companies in total)
Domestic Lifestyle (Chacott, Creative Yoko, Yamato, KASHIYAMA DAIKANYAMA, and 6 other companies; 10 companies in total)
Overseas Lifestyle (Onward Beach Resort Guam and 9 other companies; 10 companies in total)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

4

Page 4 shows results by segment. The beige rows show domestic and overseas totals, and the consolidated
totals are shown in the bottom rows. As I explained just before, the domestic total for operating profit was¥1.344 billion, a profitability improvement of ¥13.7 billion year on year. Net sales increased 1.7%, or ¥2.6
billion, year on year, thus achieving sales growth and a return to profitability. Meanwhile, net sales ofoverseas businesses were halved to ¥19.6 billion, falling 50.5% year on year. Although operating
profitability improved by ¥5.2 billion, operating loss remained at ¥1.5 billion, which left us with issues likethose relating to the Guam resort business, and our European and North American businesses. With regard
to our Guam hotel business, we finalized its sale at the end of March 2022.

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

2H

Net sales
FY02/22

FY02/21

Operating Profit
ChangeFY02/22

FY02/21

Full year

Net sales
ChangeFY02/22

FY02/21

Operating Profit
ChangeFY02/22

FY02/21Net sales
ChangeFY02/22

FY02/21

Operating Profit
ChangeFY02/22

FY02/21

Change1

Onward Kashiyama + HD

41,392

41,306+86-3,238-7,678+4,44050,00348,004+1,9991,381-5,083+6,46491,39589,310+2,085-1,857-12,761

2

Onward Trading

7,578

8,635

-1,057

1,067

1,454

-387

7,182

6,956

+226

721

191

+530

14,76015,591

-831

1,788

1,645

+143

Island

2,813

2,425

+388

-124

-413

+289

2,940

3,291

-351

0

169

-169

5,753

5,716

+37

-124

-244

+120

Chacott

4,445

2,961

+1,484

283

-632

+915

3,866

4,214

49

-216

+265

7,175

+1,136332-848+1,180Creative Yoko

2,223

2,123

+100

68

-17

+85

2,971

2,951

+20

251

287

-36

5,194

5,074

+120

319

270

+49

Yamato

9,282

8,956

+326

548

484

+64

11,044

9,353+1,691

732

313

+419

20,32618,309+2,017

1,280

797

+483

+942

12,682

14,599

3
4
5
6

D
o
m
e
s
t
i
c

-348

8,311

+10,904

7

Other

6,010

-717

-744

-117

6,672

-1,200350-1,917-394

8Domestic Subtotal (Excl.
Onward Kashiyama + HD)

32,351

31,827

+524

1,098

249

+849

34,67534,637

+38

2,103

152

+1,951

67,026

66,464

+562

3,201

401

+2,8009Europe8,822

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

4,360

20,011-15,651-109-3,071+2,962

13,18233,826-20,644-156-5,879+5,723

297

189

+108

-231

-259

+28

506

227

+279

-220

-330

+110

803

416

+387

-451

-589

+138

2,211

2,181

+30

-78

170

-248

2,993

2,085

+908

-104

-308

+204

5,204

4,266

+938

-182

-138

10
11
12
13
14

O
v
e
r
s
e
a
s

North America
Asia
Guam Resort

6,727

-627

7,872

-592

-1,219

+825

-44

150

1,033

-883

-312

115

-427

249

37

+212

-392

-226

-166

399

1,070

-671

-704

-111

-593

Overseas Subtotal

11,48017,218-5,738-668-2,782+2,1148,108

22,360-14,252-825-3,935+3,11019,58839,578-19,990-1,493-6,717+5,224

Consolidated Total

80,78584,897-4,112-3,294-10,979+7,68587,66899,154-11,486

2,215-9,194+11,409

168,453

184,051-15,598-1,079-20,173+19,094

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

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

5

Next, Page 5 shows results by group company.
The beige rows in the domestic section shows the totals for Onward Kashiyama and Holdings, with anincrease of more than ¥2 billion in net sales, and an improvement of ¥10.9 billion in operating profitability,
leaving an operating loss of around ¥1.9 billion. In addition, the subtotals for domestic group companies
excluding Onward Kashiyama and Holdings also show increased sales and profits. We achieved a significant
profit increase with a ¥562 million increase in net sales and a ¥2.8 billion increase in operating profits. As I
mentioned earlier, although overseas businesses saw a ¥20 billion decline in net sales, this was a direct
result of our global business reforms. Operating profitability showed an improvement of ¥5.2 billion.
However, that still leaves us with an operating loss of ¥1.5 billion.

FY02/22 Results by Group Company© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

6

Page 6 shows changes in consolidated net sales and consolidated operating profit by group company forthe full year. Due to reforms in our European businesses, sales declined by ¥20.6 billion, which had aconsiderably large impact. Meanwhile, the ¥10.9 billion improvement in operating profitability for Onward
Kashiyama and Holdings, and the ¥5.7 billion improvement in European businesses contributed greatly to
reducing losses.
That’s the end of my explanation of the results for the year ended February 28, 2022. Next, I would like todiscuss our results forecasts for the current fiscal year.

FY02/23 Forecasts© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

FY02/23 Full-Year Consolidated Forecast①

Forecasting consolidated net sales of 168.7 billion yen for FY02/23, up 0.1% YoY. Although the impact of
the COVID-19 pandemic is expected to continue until the end of the current fiscal year, the Company
forecasts a 4.2% YoY increase in net sales from existing businesses, excluding the Europe businesses
and other discontinued businesses, due to the acceleration of the “OMO” strategy and the promotion of
growth strategies for the Lifestyle business, Customization business, and other businesses.

②

Forecasting consolidated e-commerce net sales of 48.0 billion, up 11.4% YoY, due to accelerated growthof the new D2C brand business and further promotion of the “OMO” strategy.

③

Forecasting consolidated operating profit of 2.1 billion yen, a 3.2 billion yen YoY improvement and a
return to profitability. Onward Kashiyama + HD in particular are forecast to improve their operating
profitability by 1.9 billion yen to post a profit of 100 million yen.

④

Forecasting a 1.2% YoY increase in gross profit margin and a 0.8% YoY decrease in the SG&A expense
ratio by continuing to thoroughly implement business reforms.

⑤

Recurring profit is forecast to reach 2.1 billion yen (up 1.5 billion yen YoY), while net profit is forecast to
amount to 1.7 billion yen (down 6.9 billion yen YoY), mainly due to a decrease in the gain on sales of noncurrent assets. EBITDA is forecast to increase by 3.2 billion yen to 7.1 billion yen.

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

7

Please now look at Page 7. This page provides a simple summary of our full-year forecasts.
Point (1) is that we anticipate a slight increase in consolidated net sales. We forecast a 0.1% increase to ¥168.7 billion. In thedomestic market, we are expecting the impact of the COVID-19 pandemic to continue until the end of the fiscal year. Likewise,
the potential impact of COVID-19 on our production sites in China and elsewhere in Asia is extremely uncertain. For thesereasons, our forecast for net sales is somewhat conservative. Meanwhile, the impact of net sales declines due to discontinuationof European businesses, is expected to continue, albeit on a smaller scale, into the current fiscal year. A negative impact ofaround ¥3.4 billion is expected. When this is excluded, the forecast is a 4.2% increase year on year on a continuing existing
business basis. We expect to secure these gains through the acceleration of our omnichannel strategy, which we call our “OMO
strategy”, and the promotion of growth strategies for our Apparel business which includes customization business and Lifestylebusiness. Later, I’ll provide an overview of our “Click & Try” service, which will be the main pillar of our “OMO strategy” thisyear.
Point (2) concerns consolidated e-commerce net sales. We forecast that consolidated e-commerce net sales will increase 11.4%
year on year to reach ¥48 billion. We’ll continue working to accelerate growth in our D2C brand businesses in addition tocontinuing to also reserve inventory for physical stores within our e-commerce channels under our “OMO strategy”, while
minimizing losses due to out-of-stock items in order to maximize sales. Through policies such as these, we’re looking to achieve
an 11.4% increase in net sales.
Point (3) concerns consolidated operating profits. We’re forecasting an improvement of ¥3.2 billion year on year for a return toprofitability at ¥2.1 billion. Onward Kashiyama and Holdings in particular are expected to improve, with a profitability
improvement of ¥1.9 billion to post a profit of ¥100 million. Although the core business company Onward Kashiyama has beenheavily impacted by the COVID-19 pandemic, we hope to achieve a return to profitability this fiscal year through a variety ofreform initiatives and promotion of growth strategies such as our “OMO strategy”.
Point (4) is that implementation of large-scale business reforms including our withdrawal from unprofitable businesses has now
mostly been completed, but we will continue with thoroughgoing reforms of our continuing existing businesses. We intend to
make steady progress with efforts such as strict inventory control to enhance gross profit margins, and the implementation ofsales policies that facilitate the curbing of price markdowns. We expect the gross profit margin to rise by 1.2pt year on year, andthe SG&A expenses ratio to decrease by 0.8pt year on year. We’ll focus on efforts such as gradually reducing the expense ratios
of our physical store businesses through increased utilization of our “Click & Try” services in order to boost sales at each store.
Finally, point (5) is that we’re forecasting that recurring profit will increase by ¥1.5 billion to reach ¥2.1 billion. Due to the large
decrease in gain on sales of non-current assets this fiscal year, we forecast that net profit will decrease by ¥6.9 billion to ¥1.7
billion. Meanwhile, EBITDA is expected to grow by ¥3.2 billion to ¥7.1 billion.

FY02/23 Full-Year Consolidated Forecast(Million yen)

1H

1

2

3

4

2H

FY02/23

FY02/22Net sales

77,00080,785Gross Profit

40,500(% of Sales)

52.6%

SG&A Expenses

42,30044,312-2,012(% of Sales)

54.9%

54.9%

±0.0%

Operating Profit-1,800-3,294+1,494--(% of Sales)

ChangeYoY

FY02/23

FY02/22

Full year
ChangeYoY

FY02/23

FY02/22

ChangeYoY-3,785

95.3%

91,70087,668+4,032104.6%

168,700

168,453+247

100.1%

41,018

-518

98.7%

49,20046,594+2,606105.6%

89,70087,612+2,088102.4%

50.8%

+1.8%

53.7%

53.1%

+0.6%

53.2%

52.0%

+1.2%

45,30044,379+921

87,60088,691-1,091

49.4%

50.6%

-1.2%

51.9%

52.7%

-0.8%

3,900

2,215

+1,6852,100-1,079+3,179

-

4.3%

2.5%

1.2%

404.3%

95.5%-

102.1%

176.1%

98.8%

5

Recurring Profit-1,750-2,862+1,112

-

3,800

3,369

+431

112.8%

2,050

507+1,543

6

Net Profit-1,2507,448-8,698

-

2,950

1,118

+1,832263.9%

1,700

8,566

-6,866

19.8%

7

EBITDA

*

650

-687

+1,337

-

6,430

4,602

+1,828139.7%

7,080

3,915

+3,165180.8%

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

8

Page 8 shows consolidated forecasts for this fiscal year’s net sales and profits at all levels, for your reference.

FY02/23 Forecasts by Segment(Million yen)
1H
FY02/23
1
2
3
4
5

D
o
m
e
s
t
i
c

7
8
9
10
11

O
v
e
r
s
e
a
s

ChangeYoY

FY02/23

FY02/22

Full year
ChangeYoY

FY02/23

FY02/22

ChangeYoY

Net Sales

55,40655,920

-514

99.1%

65,63964,596+1,043101.6%

121,045

120,516+529

Operating Profit-1,728-3,331+1,603

-

2,800

2,077

+723

134.8%

1,072-1,254+2,326-Net Sales

18,783

17,823+960

105.4%

19,80020,082

-282

98.6%

38,58337,905+678

101.8%
112.5%

ApparelLifestyle100.4%

Operating Profit

1,370

1,191

+179

115.0%

1,554

1,407

+147

110.4%

2,924

2,598

+326

Net Sales

74,18973,743+446

100.6%

85,43984,678+761

100.9%

159,628

158,421+1,207100.8%

Operating Profit-358-2,140+1,782

-

4,354

3,484

+870

125.0%

3,996

1,344

+2,652297.3%
91.4%

Domestic Total

6

FY02/222H

Net Sales

6,270

10,750-4,48058.3%

10,026

7,088+2,938141.5%

16,296

17,838-1,542

Operating Profit

-839

-244

-595

-

423

-435

+858

-

-416

-679

+263

-

Net Sales

932

730

+202

127.7%

1,247

1,020

+227

122.3%

2,179

1,750

+429

124.5%

ApparelLifestyleOperating Profit

-192

-424

+232

-

-103

-390

+287

-

-295

-814

+519

-

Net Sales

7,202

11,480-4,27862.7%

11,2738,108+3,165139.0%

18,475

19,588-1,113

94.3%

Overseas Total

12

Operating Profit-1,031

-668

-363

-

320

-825

+1,145--711-1,493

+782

-

13

Net Sales

77,00080,785-3,785

95.3%

91,70087,668+4,032104.6%

168,700

168,453+247

100.1%

Operating Profit-1,800-3,294+1,494

-

3,900

2,215

+1,685176.1%

2,100-1,079+3,179-14

Consolidated Total

Note: The segment breakdown is calculated using simple sums of all companies. Consolidated totals are after eliminating intergroup transactions.
Note: Full year: December−November for Europe, and January−December for Asia and North America
Note: Domestic Apparel (Onward Kashiyama, Onward Trading, Island, Onward Personal Style, and 4 other companies; 8 companies in total)
Note: Overseas Apparel (8 companies in the JOSEPH Group, J.PRESS, Onward Fashion Trading and 6 other companies; 16 companies in total)
Note: Domestic Lifestyle (Chacott, Creative Yoko, Yamato, and 4 other companies; 8 companies in total)
Note: Overseas Lifestyle (Golf Resort Guam and 2 other companies; 3 companies in total)© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

9

Next, Page 9 shows domestic and overseas data by segment. Domestic businesses are forecast to achieveslight net sales growth, but operating profits are forecast to reach ¥4 billion, a threefold increase. As
discussed earlier, we’re forecasting a decline of ¥1.1 billion in net sales for overseas businesses due to thenegative impact on sales due to the withdrawal from European businesses, which as I mentioned earlier,
will continue albeit on a smaller scale this fiscal year. We anticipate that operating losses will halve toaround ¥700 million, and we’re looking to achieve a return to profitability in the fiscal year ending February
29, 2024.

FY02/23 Forecasts by Group Company(Million yen)
1H

2H

Net Sales
FY02/23

FY02/22

Operating Profit
ChangeFY02/23

FY02/22

Full year

Net Sales
ChangeFY02/23

FY02/22

Operating Profit
ChangeFY02/23

FY02/22Net Sales
ChangeFY02/23

FY02/22

Operating Profit
ChangeFY02/23

FY02/22

Change1

Onward Kashiyama+ HD41,30041,392- 92-1,955-3,238+1,28350,10650,003

+103

2,034

1,381

+653

91,40691,395+11

79-1,857+1,9362

Onward Trading

7,190

7,578

- 388

898

1,067

- 169

8,030

7,182

+848

913

721

+192

15,22014,760

+460

1,811

1,788

+23

Island

2,973

2,813

+160

-94

-124

+30

3,185

2,940

+245

-14

0

- 14

6,158

5,753

+405

-108

-124

+16

Chacott

4,680

4,445

+235

289

283

+6

4,250

3,866

+384

54

49

+5

8,930

8,311

+619

343

332

Creative Yoko

2,343

2,223

+120

73

68

+5

2,996

2,971

+25

280

251

+29

5,339

5,194

+145

353

319

+34

Yamato

9,755

9,282

+473

557

548

+9

10,248

11,044

- 796

763

732

+31

20,003

20,326

- 323

1,320

1,280

+40

3
4
5
6
7

D
o
m
e
s
t
i
c

8

9
10
11
12
13
14

O
v
e
r
s
e
a
s

+11

Other

5,948

6,010

- 62

-126

-744

+618

6,624

6,672

- 48

324

350

- 26

12,572

12,682

- 110

198

-394

+592

Domestic Subtotal(Excl. Onward
Kashiyama + HD)

32,88932,351

+538

1,597

1,098

+499

35,33334,675

+658

2,320

2,103

+217

68,222

67,026+1,196

3,917

3,201

+716

Europe

3,969

8,822

- 4,853

-525

-47

- 478

5,764

4,360

+1,404

374

-109

+483

9,733

13,182- 3,449

-151

-156

543

297

+246

-224

-231

+7

1,139

506

+633

-46

-220

+174

1,682

803

+879

-270

-451

+181

2,544

2,211

+333

-164

-78

- 86

4,119

2,993

+1,126

170

-104

+274

6,663

5,204

+1,459

6

-182

+188

North America
Asia
Guam Resort

+5

146

150

-4

-118

-312

+194

251

249

+2

-178

-392

+214

397

399

-2

-296

-704

+408

Overseas Subtotal

7,202

11,480- 4,278-1,031

-668

- 363

11,2738,108+3,165320-825+1,145

18,475

19,588- 1,113-711-1,493+782

Consolidated Total

77,00080,785- 3,785-1,800-3,294+1,49491,70087,668+4,032

3,900

2,215

+1,685

168,700

168,453

+247

2,100

-1,079+3,179Note: The group breakdown is calculated using simple sums. Consolidated totals are after eliminating intergroup transactions.

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

Page 10 shows forecasts by group company, please refer to it at your leisure.

10

FY02/23 Forecasts by Group Company© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

11

Page 11 shows waterfall graphs of our forecasts for full-year consolidated net sales and consolidated
operating profits for each group company. The biggest factor for the forecast change in net sales is ourwithdrawal from European businesses and the resulting ¥3.4 billion decline in revenue. The net sales ofother group companies are each expected to be impacted by differing positive and negative factors, butalmost all group companies are forecast to achieve slight sales growth. With regard to operating profit, we
believe that a return to profitability for Onward Kashiyama will be the most important issue. We’re also
looking to boost profits or improve profitability at almost all of the other group companies.

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

FY02/22 Financial Situation■Consolidated Balance Sheet(100 million yen)

End-FY02/22

End-FY02/21

Remarks

Change1 Current Assets

605

804

-199

2

Cash and Deposits

152

213

-61 subsidiaries following business reforms

3

Accounts Receivable

142

182

-40

4

Lower cash and deposits due to decrease in number of

Inventory

268

343

5 Non-current Assets

972

1,155

-183 Pursuing liquidation of non-current assets

6

Property, Plant and Equipment

580

718

-138 Pursuing liquidation of non-current assets

7

Intangible Assets

93

106

-13

8

Investments and Other Assets

298

330

-32

9 Total Assets-75 Lower inventory due to inventory streamlining

1,577

1,960

-383

10 Liabilities

804

1,365

-561

11

Accounts Payable

182

219

-37

12

Borrowings

351

780

-429 Lower borrowings due to improved cash management efficiency

772

595

177

13 Net Assets■Metrics
End-FY02/22

End-FY02/19

Remarks

End-FY02/21

End-FY02/20

14 Shareholders’ Equity Ratio

42.4%

28.9%

38.3%

55.1% Improved significantly; up 13.4% YoY

15 Current Ratio

108.5%

80.8%

98.2%

111.3% Current ratio recovered to above 100%© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

12

Next, please look at Page 12, which shows changes in the consolidated balance sheet and relevant
indicators. In the fiscal year ended February 28, 2022, we set improvement and strengthening of thebalance sheet as a major management target, with the aim of promoting stable operations during theextremely uncertain conditions of the COVID-19 pandemic, in addition to improving profitability. As aresult, we saw significant improvements, including a ¥17.7 billion increase in net assets, and a 13.4pt
increase in the shareholders’ equity ratio. Meanwhile, in the fiscal year ended February 28, 2022 we wereable to bring the current ratio back up to above 100%, reaching 108.5% after having deteriorated to 80.8%
in the fiscal year ended February 28, 2021. Based on this balance sheet, from this fiscal year onwards we’relooking to proactively implement appropriate investments to drive growth with focus on M&A and digitaltransformation in order to launch an aggressive comeback.
I’ll finish my discussion of our results based on the Results Presentation Supplement here.
For the last part of my presentation, I’d like to further explain our “OMO strategy”, which is the main pillarof our growth strategies this fiscal year. Specifically, I will discuss our “Click & Try” service, one of ourpractical strategies. Please turn to page 20.

FY02/22 Financial Situation■Consolidated Statements of Cash Flows(Million yen)
FY02/22
16

Cash flows from operating
activities

FY02/21

Remarks

Change+27,428

Improved significantly due to a return to profit before income taxes,
inventory streamlining, and tax refunds

7,814-19,61417 Depreciation and amortization

4,605

5,659

18 Cash flows from investing activities

21,685

6,091+15,594

Improved significantly due to sales of non-current assets and sharesof subsidiaries and associates

Cash flows from financing
19
activities-36,173

5,860-42,033

Decreased due to liquidation of non-current assets and repayments
associated with improved capital efficiency

20 Cash and cash equivalents

15,19921,270-6,071 Due to decrease in number of subsidiaries following business reforms-1,054 Due to sales of non-current assets■Capital Expenditures■Shareholder Returns(Million yen)

FY02/23 Forecast

FY02/22

FY02/21

FY02/22

21 Capex

5,382

5,657

6,501 23 Dividend Per Share (Yen)

22 Depreciation and Appreciation

4,220

4,605

5,659

FY02/2112

FY02/20
12

24

24 Dividend Payout Ratio

19.0%

-

-

Dividend Yield
25 (based on year-end stock price)

4.3%

4.8%

4.6%

©Copyright ONWARD HOLDINGS CO.,LTD.

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

Early Adoption of the New Revenue Recognition Standard

The new revenue recognition standard applies to companies starting a new fiscal year
beginning on or after April 1, 2021. The Group will adopt the new revenue recognition
standard early, starting in FY02/22.
Key impacts of the new revenue recognition standard on the GroupFor consignment transactions with department stores, retail sales will be recorded as sales,
and rent equivalents will be recorded as SG&A expenses, whereas previously the net
amount after deducting rent equivalents was recorded as sales.
Loyalty point usage fees, which were previously included in SG&A expenses, will instead be
deducted from sales.
The above changes will not affect operating profit.

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

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

14

DATA BOOK

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

【Reference】 Impact of Omicron Variant during FY02/22 Q4+4,875-23-11

In Q4, footfall at physical stores increased steadily until early January 2022. Winter clothing sales were strong,due in part to cooler temperatures. However, from mid-January, footfall declined sharply due to the spread of theOmicron variant and the accompanying implementation of priority measures to prevent the spread of COVID-19.
As a result, Q4 net sales were 6.1 billion yen below the forecast. Despite efforts to reduce SG&A expenses in
response to this, operating profit was 2.1 billion yen lower than forecast, resulting in a full-year operating loss of
1.1 billion yen, due to the significant impact of the reduced sales on gross profit.

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

15

DATA BOOK: FY02/22 Results
Sales by Channel
Total consolidated e-commerce sales (incl. overseas sales) were 43.1 billion yen (up 6.3%
YoY). The e-commerce ratio for domestic businesses was 30.0%. The directly managed ecommerce ratio was 86.5%.
(Million yen)
Department
StoresPhysical Stores
Total

Directly Managed Other E-Commerce
Platforms
E-Commerce

E-Commerce
Total

E-Commerce
Ratio

Total Sales

33,77429,30863,082

24,0872,960

27,047

90,129% of sales

37.5%

32.5%

70.0%

26.7%

3.3%

30.0%

100.0%YoY

1 Onward Kashiyama
2

Shopping Centers
and Other

3

30.0%

Directly
Managed
E-Commerce
Ratio

89.1%

118.3%

90.3%

103.4%

98.9%

101.3%

99.1%

102.1%

-0.9%

-0.2%

4

Eight Domestic Subsidiaries
Using E-Commerce*

8,856

23,32432,18011,2852,565

13,85046,030

30.1%

81.5%

5

Total of Domestic Group
Companies Using E-Commerce

30.0%

86.5%

0.3%

-0.3%

6
7

42,63052,632

95,26235,372

5,525

40,897

136,159% of sales

31.3%

38.7%

70.0%

26.0%

4.1%

30.0%

100.0%

YoY

115.7%

96.1%

104.0%

107.9%

105.7%

104.5%#DIV/0!

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

16

DATA BOOK: FY02/22 Results
SG&A expenses(Million yen)

1H
FY02/22

FY02/212H
ChangeYoY

FY02/22

FY02/21

Full year
ChangeYoY

FY02/22

FY02/21

ChangeYoY

1 Personnel

18,13422,069-3,935

82.2%

17,17820,073-2,89585.6%

35,312

42,142-6,83083.8%

2 Rent10,87011,056

-186

98.3%

12,407

13,167

-760

94.2%

23,277

24,223

-946

96.1%

3 Transportation

3,083

3,125

-42

98.7%

3,112

3,288

-176

94.6%

6,195

6,413

-218

96.6%

4 Promotion and Advertising

2,810

3,475

-665

80.9%

1,968

3,792

-1,824

51.9%

4,778

7,267

-2,48965.7%

5 Depreciation

1,843

1,966

-123

93.7%

1,618

2,044

-426

79.2%

3,461

4,010

-549

86.3%

6 Other

7,572

8,001

-429

94.6%

8,096

8,646

-550

93.6%

15,668

16,647

-979

94.1%

7

Total SG&A expenses

44,312

49,692-5,38089.2%

44,37951,010-6,631

87.0%

88,691

100,702-12,01188.1%

8

Extraordinary loss adjustment

1,062

3,118

-2,056

34.1%

558

589

-31

94.7%

1,620

3,707

-2,08743.7%

9(Reference) Effective SG&A
expenses

45,374

52,810-7,43685.9%

44,93751,599-6,66287.1%

90,311

104,409-14,098

86.5%

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

Non-Operating
Profit/Loss
FY02/22

FY02/21

ChangeYoY

Gain on sales of non-current

20 assets

Gain on sales of investment

55

-3

94.5%

21 securities

1,340

193

+1,147694.3%

22 subsidiaries and associates

99

-443

+542

-

10 Interest income

52

11 Dividend income
12 Foreign exchange gains(Million yen)

FY02/22(Million yen)

Gain on sales of shares of
Subsidies for employment

23 adjustment

FY02/21

ChangeYoY

17,921

8,416+9,505212.9%

105

8

+97

1312.5%

2,944

154

+2,790

-

289

1,696

-1,40717.0%-1,620-3,893+2,27341.6%-1,829-13 Subsidy income

1,013

884

+129

114.6%

24 Loss due to closing and other

14 Interest expenses

-391

-595

+204

65.7%

25 subsidiaries and associates

-73

-70

-3

104.3%

26 and associates-1,968-5,171+3,203

-

-96

-213

+117

45.1%

27 Impairment loss

-1,741

Share of loss of entities accounted

15 for using equity method

Loss on disposal of salesfloor

16 fixtures, etc.

Non-deductible consumption tax,

17 etc.

-252

-166

-86

151.8%

18 income/expenses

-105

354

-459

-29.7%

19

1,587

-1

+1,588-Other non-operating
Non-operating profit/loss

Loss on sales of shares ofLoss on liquidation of subsidiaries-1,829-3,299+1,558

52.8%

Loss on valuation of investment
28 securities-1,685+1,685-29 Loss on liquidation of businesses

-953

+953

-

-695

-659

-36

105.5%

13,406-5,386+18,792-

30 Other
31

Extraordinary profit/loss© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

17

DATA BOOK: FY02/22 Results(Million yen)

Onward Kashiyama + HD

1H
FY02/221
2
3

FY02/212H
ChangeYoY

FY02/22

FY02/21

Full year
ChangeYoY

FY02/22

FY02/21

41,392

41,306+86100.2%

50,00348,004+1,999104.2%

91,39589,310+2,085102.3%

Gross Profit

22,85521,720+1,135105.2%

28,711

24,108+4,603119.1%

51,56645,828+5,738112.5%(% of Sales)

55.2%

52.6%

+2.6%

57.4%

50.2%

+7.2%

56.4%

51.3%

+5.1%

SG&A Expenses

26,09329,398-3,30588.8%

27,33029,191-1,861

93.6%

53,42358,589-5,16691.2%(% of Sales)

63.0%-3,23871.2%-7,678-8.2%+4,440

-

54.7%
1,381

60.8%
-5,083-6.1%+6,464-58.5%-1,85765.6%-12,761-7.1%+10,904---(% of Sales)
2.8%
Note: Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.

Domestic Subtotal

5
6
7

8

YoY

Net sales

Operating Profit
4(Excl. Onward Kashiyama + HD)

ChangeNet sales

32,351

31,827+524

101.6%

34,67534,637+38

100.1%

67,026

66,464+562

100.8%

Gross Profit

16,18814,710+1,478110.0%

17,15816,064+1,094106.8%

33,34630,774+2,572108.4%(% of Sales)

50.0%

46.2%

+3.8%

49.5%

46.4%

+3.1%

49.8%

46.3%

+3.5%

SG&A Expenses

15,09014,461+629

104.3%

15,055

15,912

-857

94.6%

30,14530,373

-228

99.2%

(% of Sales)

46.6%
1,098

45.4%
249

+1.2%
+849

441.0%

43.4%
2,103

45.9%
152

-2.5%
+1,9511383.6%

45.0%
3,201

45.7%
401

-0.7%
+2,800798.3%

0.4%

+5.6%

4.8%

0.6%

+4.2%

Operating Profit(% of Sales)
3.4%
0.8%
+2.6%
6.1%
Note: Calculated using simple sums for the domestic group companies excluding Onward Kashiyama and HD.

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

Overseas Subtotal

9
10
11
12

Net sales

11,48017,218-5,738

66.7%

8,108

22,360-14,252

36.3%

19,58839,578-19,990

Gross Profit

4,384

5,114

-730

85.7%

3,227

4,448

-1,221

72.5%

7,611

9,562

-1,951

49.5%
79.6%

(% of Sales)

38.2%

29.7%

+8.5%

39.8%

19.9%

+19.9%

38.9%

24.2%

+14.7%

SG&A Expenses

5,052

7,896

-2,844

64.0%

4,052

8,383

-4,331

48.3%

9,104

16,279-7,175

55.9%(% of Sales)

44.0%
-668

45.9%
-2,782-1.9%+2,114

-

50.0%
-825

37.5%
-3,935+12.5%+3,110-46.5%-1,49341.1%-6,717+5.4%+5,224

-

-

-

-

-

-

-

Operating Profit(% of Sales)
Note: Calculated using simple sums.

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

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

18

DATA BOOK FY02/23 Forecasts(Million yen)

Onward Kashiyama + HD

1H
FY02/23
1
2
3

Domestic Subtotal

Overseas Subtotal

5
6ChangeYoY

FY02/23

FY02/22

ChangeYoY

99.8%

50,10650,003+103100.2%

91,40691,395+11

100.0%

Gross Profit

23,80057.6%
25,75562.4%-1,95522,85555.2%
26,09363.0%-3,238

+945
+2.4%
-338
-0.6%
+1,283104.1%

30,07260.0%
28,03856.0%
2,034

28,711
57.4%
27,33054.7%
1,381+1,361
+2.6%
+708
+1.3%
+653

104.7%

53,872
58.9%
53,79358.9%
79

51,56656.4%
53,42358.5%-1,857+2,306
+2.5%
+370
+0.4%
+1,936104.5%(% of Sales)

-

-

4.1%

2.8%

+1.3%

0.1%

-

Net sales

32,88932,351+538

101.7%

35,33334,675+658

101.9%

68,222

67,026+1,196101.8%

Gross Profit

16,371

16,188+183

101.1%

17,17817,158+20

100.1%

33,54933,346+203

100.6%

48.6%

49.5%

-0.9%

49.2%

49.8%

-0.6%

97.9%

14,85815,055

-197

98.7%

29,63230,145

-513

42.1%

43.4%

-1.3%

43.4%

45.0%

-1.6%

2,320

2,103

+217

3,917

3,201

+716

(% of Sales)
4.9%
3.4%
+1.5%
6.6%
Note: Calculated using simple sums for the domestic group companies excluding Onward Kashiyama.

6.1%

+0.5%

5.7%

4.8%

+1.0%

18,475

19,588(% of Sales)

SG&A Expenses(% of Sales)

49.8%

50.0%

-0.2%

14,77415,090-316(% of Sales)

44.9%

46.6%

-1.7%

8

Operating Profit

1,597

1,098

+499

12

Change-92(% of Sales)

11

FY02/22

41,392

SG&A Expenses

9

FY02/23

41,3007

10

YoY

Full year

Net sales

Operating Profit
4(Excl. Onward Kashiyama + HD)

FY02/222H

Net sales

7,202

98.7%
-

145.4%

11,480-4,27862.7%

Gross Profit

3,138

4,384

-1,246

71.6%(% of Sales)

43.6%

38.2%

+5.4%

11,273102.6%
147.3%

110.3%

8,108+3,165139.0%

5,163

3,227

+1,936160.0%

45.8%

39.8%

+6.0%

100.7%-

98.3%
122.4%-1,113

94.3%

8,301

7,611

+690

109.1%

44.9%

38.9%

+6.0%

SG&A Expenses

4,169

5,052

-883

82.5%

4,843

4,052

+791

119.5%

9,012

9,104

-92

99.0%

(% of Sales)

57.9%-1,03144.0%-668+13.9%
-363

-

43.0%
320

50.0%
-825

-7.0%
+1,145

-

48.8%
-711

46.5%
-1,493

+2.3%
+782

-

-

-

2.8%

-

-

-

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

19

CLICK ＆ TRY© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

CLICK & TRY
Renewal of “Click & Try” OMO Service - Delivered via Online, Try-on and Buy in Store
Implementation Expanded to 278 Stores in 44 Prefectures
for a More Convenient and Accessible Service

59 stores
Chugoku/
Shikoku■Overview of Click & Try
Click & Try is a delivery service where items in ONWARD CROSSET, the ONWARD Group’s
official fashion online shopping site, can be tried on and purchased in physical stores. By
choosing any one of the nationwide stores implementing this service, customers can enjoy
shopping items found interesting in the online store with satisfaction by trying them on.
© Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.
©Copyright ONWARD HOLDINGS CO.,LTD.

20

The “Click & Try” service enables customers to choose garments they’d like to try on from the products listed on the Onward
Group online store “ONWARD CROSSET”. Customers then select a convenient physical store location and times and dates. The
items are then sent directly to the selected store for the customer to try on in fitting rooms, with our sales staff providing any
necessary assistance. When a customer purchases any of these items, the sale is recorded as a physical store purchase, not as an
e-commerce purchase.
The service was launched on a trial basis during the fiscal year ended February 28, 2022, and is beginning in earnest this fiscal
year. From the start of the current fiscal year the “Click & Try” service was available at a total of 278 physical Onward Kashiyama
stores across 44 prefectures; the equivalent of roughly one third of Onward Kashiyama’s physical stores. If we look at results forthe month of March 2022, physical stores that provide the “Click & Try” service achieved 18% year-on-year sales growth.
Meanwhile the average year-on-year sales growth for March 2022 was 3% for physical stores without this service; a 15
percentage point gap. We believe that this gap is largely a direct result of the “Click & Try” service.
I have received reports that the service has been very well received by both customers and store staff. In particular, it has great
reviews from customers who are looking for products in irregular sizes rather than more average sizes. In most cases, irregularsize items aren’t given much space on sales floors, and physical stores usually have no option but to limit their inventory of suchitems. We’re seeing a clear spike in purchases from customers who choose irregular size items online to be sent to their local
physical stores for fitting, and such customers are very happy with the service.
Likewise, it’s clear that the “Click & Try” service is very popular among customers who live in regions with low population
densities, where the availability of certain brands and items can be quite limited.
However, customer awareness of this service is still low, and we still need to work on enhancing the customer service skills ofstaff at physical stores offering the service. If utilization of this service grows month by month, we can look forward to sales
growth at physical stores that provide the “Click & Try” service. Adoption of the “Click & Try” service at physical stores has
clearly led to more efficient utilization of sales floor space and staffing. Our expectations about the impact the service will haveon improving store profitability are even greater than our expectations about the revenue boost we can expect from expanding
the number of stores providing the service.
Over the past dozen or so years, our digital transformation efforts have mostly been focused on boosting the weighting of ecommerce sales. From now on, however, we will look to grow our e-commerce business while, in parallel with this, driving the
expansion of net sales at physical stores and enhancing their business efficiency. We believe that we are now settling on asystem that facilitates growth in both e-commerce and physical store channels. We have positioned our “OMO strategy” as themain pillar of our future growth strategies.
I would like to conclude my results presentation here. Thank you very much for your attention.

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.