Onward : Results Presentation Supplement

FY02/22 Q3 Results Presentation Supplement

January 13, 2022

Contents

P.2-3	・・・	FY02/22 Q3	Consolidated Results
P.4	・・・	FY02/22 Q3	Results by Segment
P.5-7	・・・	FY02/22 Q3	Results by Group Company
P.8	・・・ Early Adoption of the New Revenue Recognition Standard
P.9	・・・	Financial Situation
P.10-13	・・・	DATA BOOK

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FY02/22 Q3 Consolidated Results

Q3 results

• Since the state of emergency was lifted at the beginning of October 2021, customer traffic at physical stores has gradually increased, boosting performance of the mainstay domestic apparel business. OPM was up 4.1pp YoY due to thorough inventory management and streamlining of SG&A expenses. As a result, all profit categories increased YoY in Q3, with operating profit at 2.3 billion yen, recurring profit at 2.1 billion yen, and net profit at 0.6 billion yen.
• Net sales fell 9.8 billion yen YoY to 43.6 billion yen due to the impact of global business reforms centered on Italy operations. However, in existing businesses, sales were up 2.3 billion yen.
• E-commercesales grew 11% YoY to 10.7 billion yen, driven by steady growth of the new D2C brand business and a decline in losses associated with out-of-stock items owing to full-fledged operation of the centralized inventory management system for online and physical stores.

Q4 and full-year outlook

• The domestic apparel business is continuing on a recovery track, backed by robust sales of winter clothing due in part to a fall in temperatures in the beginning of Q4 and strong sales at OMO stores which began full-scale operations.
• The Company expects profits to improve significantly in the overseas business in Q4 as the effects of global business reforms, primarily for Italy operations, are emerging across the business. For the full year, the Company maintains its expectation to turn a profit at all profit levels for the first time in three fiscal years.

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FY02/22 Q3 Consolidated Results

Previous year's figures adjusted to reflect changes in revenue recognition standard*1

																										(Million yen)
				1H							Q3							Cumulative Q3			Unadjusted*2
		FY02/22		FY02/21		Change		YoY		FY02/22		FY02/21		Change		YoY		FY02/22		FY02/21		Change		YoY		FY02/21
1	Net Sales	80,785		84,897		-4,112		95.2%		43,570		53,388		-9,818		81.6%		124,355		138,285		-13,930		89.9%	132,227
2	Gross Profit	41,018		38,713		+2,305		106.0%		24,441		25,846		-1,405		94.6%		65,459		64,559		+900		101.4%	57,226
	(% of Sales)	50.8%		45.6%		+5.2%				56.1%		48.4%		+7.7%				52.6%		46.7%		+5.9%			43.3%
3	SG&A Expenses	44,312		49,692		-5,380		89.2%		22,095		25,129		-3,034		87.9%		66,407		74,821		-8,414		88.8%	67,488
	(% of Sales)	54.9%		58.5%		-3.6%				50.7%		47.1%		+3.6%				53.4%		54.1%		-0.7%			51.0%
4	Operating Profit	-3,294		-10,979		+7,685		-		2,346		717		+1,629		327.2%		-948		-10,262		+9,314		-	-10,262
	(% of Sales)	-		-						5.4%		1.3%		+4.1%				-		-					-
5	Recurring Profit	-2,862		-11,454		+8,592		-		2,103		1,209		+894		173.9%		-759		-10,245		+9,486		-		-10,245
6	Profit	7,448		-15,188		+22,636		-		634		592		+42		107.1%		8,082		-14,596		+22,678		-		-14,596
7	EBITDA*3	-687		-7,989		+7,302		-		3,519		2,203		+1,316		159.7%		2,832		-5,786		+8,618		-		-5,786

1. Figures for FY02/21 have been adjusted to reflect the new revenue recognition standard used in FY02/22.
   Figures for cumulative Q3 FY02/21 have been adjusted to reflect the new revenue recognition standard. Adjustments: +6,058 million yen for sales, +7,333 million yen for gross profit and SG&A expenses.
2. Unadjusted figures for FY02/21 correspond to the Q3 FY02/21 figures as shown in Consolidated Financial Results for the Nine Months Ended November 30, 2021.
3. EBITDA = operating profit + depreciation and amortization.

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FY02/22 Q3 Results by Segment

Segment Results

(Million yen)

							1H				Q3				Cumulative Q3
						FY02/22	FY02/21		Change	YoY	FY02/22	FY02/21		Change	YoY	FY02/22	FY02/21	Change	YoY
1	D	Apparel		Net Sales	52,182	52,868		-686	98.7%	31,452	32,467		-1,015	96.9%	83,634	85,335	-1,701	98.0%
2	o			Operating	-3,637	-8,269		+4,632	-	1,688	-444		+2,132	-	-1,949	-8,713	+6,764	-
		Profit
	m
3			Net Sales	17,848	15,649		+2,199	114.1%	9,341	9,218		+123	101.3%	27,189	24,867	+2,322	109.3%
e
	s	Lifestyle
4		Operating	1,493	738		+755	202.3%	1,226	1,185		+41	103.5%	2,719	1,923	+796	141.4%
		Profit
	t
5	i			Net Sales	70,030	68,517		+1,513	102.2%	40,793	41,685		-892	97.9%	110,823	110,202	+621	100.6%
	c	Domestic Total
6		Operating	-2,144	-7,531		+5,387	-	2,914	741		+2,173	393.3%	770	-6,790	+7,560	-
				Profit
7	O		Apparel		Net Sales	10,047	14,897		-4,850	67.4%	2,360	11,449		-9,089	20.6%	12,407	26,346	-13,939	47.1%
8	v		Operating	-487	-2,831		+2,344	-	-292	37		-329	-	-779	-2,794	+2,015	-
		Profit
	e
9			Net Sales	708	1,483		-775	47.7%	417	254		+163	164.2%	1,125	1,737	-612	64.8%
r	Lifestyle
10	s		Operating	-431	-267		-164	-	-417	-233		-184	-	-848	-500	-348	-
		Profit
	e
11	a			Net Sales	10,755	16,380		-5,625	65.7%	2,777	11,703		-8,926	23.7%	13,532	28,083	-14,551	48.2%
	s	Overseas Total
12		Operating	-918	-3,098		+2,180	-	-709	-196		-513	-	-1,627	-3,294	+1,667	-
				Profit
13	Consolidated Total		Net Sales	80,785	84,897		-4,112	95.2%	43,570	53,388		-9,818	81.6%	124,355	138,285	-13,930	89.9%
14		Operating	-3,294	-10,979		+7,685	-	2,346	717		+1,629	327.2%	-948	-10,262	+9,314	-
				Profit
	Note: Cumulative Q3: December-August for Europe, and January-September 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)

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