United Arrows : Presentation Material of Earnings Announcement for the First Quarter Ended June 30, 2022

for the First Quarter of

Fiscal Year Ending March 2023

2022.08.04 UNITED ARROWS LTD.

Contents

P04 - P 19	| 01	Overview of FY23 Q1 Business
		Results
P 20 - P 25	| 02	Establishment of Numerical
		Sustainability Targets
P 26 - P 27	| 03	Message from Yoshinori Matsuzaki,
		Representative Director, President and CEO
P 28 - P 33	| 04	Reference Materials

Cautionary Statement

Earnings forecasts and descriptions other than objective facts contained in this document are based on decisions made by UNITED ARROWS LTD. in light of information obtainable as of the date of this report and, therefore, include risks and uncertainties. Actual earnings may differ materially from forecasts due to global economic trends, market conditions and other factors. Investors are asked to refrain from making investment decisions based solely on the information contained in this document.

Use of Abbreviations

Abbreviations may be used for the following businesses/store brands:

UNITED ARROWS	UA
BEAUTY&YOUTH UNITED ARROWS	BY/BEAUTY&YOUTH
UNITED ARROWS green label relaxing	GLR/green label relaxing

Trend-conscious Market and Basic Trend-conscious Market include the following store brands:

Trend-conscious Market

UA, BY, DRAWER, Odette e Odile, BLAMINK, ROKU, and STEVEN ALAN

Basic Trend-conscious Market

GLR, and CITEN

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01

Overview of FY23 Q1 Business Results

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01 Overview of FY23 Q1 Business Results

Summary	Both sales and gross margin exceeded the plan, and profit including
		operating income was over the plan due to the control of SGA expenses

Consolidated

Non-Consolidated

Sales: ¥29,664 million

Compared with the same period of last year 117.4%, compared with the same period of 3 years ago 89.4%*

* Calculated excluding the impact of the changes in consolidation structure and revenue recognition standards

Sales: ¥27,089 million

Compared with the same period of last year 118.2%, compared with the same period of 3 years ago 89.1%*

Gross margin: 54.5%

Up 3.1 points year-on-year, down 0.2 points from the same period of 3 years ago

SGA expenses: ¥14,328 million

Compared with the same period of last year 103.1%, compared with the same period of 3 years ago 82.4%

SGA expenses ratio: 48.3%

Up 6.7 points from the same period last year, up 1.9 points from the same period of 3 years ago

Operating income: ¥1,853 million

In the same period of the previous year, it was -¥903 million, compared with the same period of 3 years ago 59.0%

Gross margin: 54.6%

Up 3.7 points from same period of last year, up 0.2 points from same period of 3 years ago

Retail + Online existing store sales YoY

Sales 120.5% Number of customers 109.8%

Avg. spend per customer 111.4%

Sales by business

Trend market: ¥14,566 million

Compared with the same period of last year 117.4%, compared with the same period of 3 years ago 86.9%*

Basic Trend-conscious Market: ¥7,770 million

Compared with the same period of last year 117.6%, compared with the same period of 3 years ago 82.7%*

* Calculated excluding the impact of the change in revenue recognition standards

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