Onward : ANNUAL REPORT 2023（13.9 MB）

ANNUAL REPORT 2023

Year Ended February 28, 2023

Onward Holdings Co., Ltd.

Contents

03 The Onward Group's Raison D'etre

Message from

the Management 04 Message from the President 07 Message from Outside Director

	09	Value Creation Model of the Onward Group
	10	Awareness of the Business Environment
Value Creation Model and	11	Strengths of the Onward Group
Sustainable Management
	12	Sustainability Vision and Promotion System
	13	Materiality of the Onward Group

	15	Environmental Initiatives
Environment	15	Environmentally Friendly Manufacturing
16	Circular Economy
	17	Onward Group Disclosure in Line with the TCFD
		Recommendations
	20	Social Initiatives
	20	Co-prosperity with Suppliers
	20	Co-prosperity with Communities
Social	21	Work Style Design
22	Diversity
	23	Initiatives for Human Capital Management
	24	Respecting Human Rights and Developing the Working
		Environment
	26	Stakeholder Engagement
Corporate Governance	28	Corporate Governance
32	Management Team
FY02/23 Result	34	Consolidated Financial Results
35	Apparel Business
	37	Lifestyle Business
	40	11-Year Key Financial Data
	41	Analysis of Financial Position, Operating Results and Cash
		Flows
Financial Data and	43	Consolidated Financial Statements
47	Our History
Corporate Information
49	Onward Group Key Brands
	51	Our Network
	52	Company Information
	53	Stock Information

Forward- Looking Statements

ANNUAL REPORT 2023

The information in this report is not a solicitation to purchase or sell Onward Holdings stock.

Opinions and forecasts stated herein represent the judgments of the Company at the time this report was published. Onward Holdings makes no guarantee regarding the accuracy of the information in this report and may make revisions without prior notice. Onward Holdings and the providers of this information assume no responsibility whatsoever for any losses incurred in association with this information.

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Message from the Management

Value Creation Model and Sustainable Management

Environment

Social

Corporate Governance

FY02/23 Result

Financial Data and Corporate Information

Messages from the Management	The Onward Group's Raison D'etre
Message from the President
	Message from Outside Director

ANNUAL REPORT 2023

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Message from the Management

Value Creation Model and Sustainable Management

Environment

Social

Corporate Governance

FY02/23 Result

Financial Data and Corporate Information

The Onward Group's Raison D'etre

(Mission Statement)

Enriching and Adding Color to People's

Lives while Caring for the Planet

The world of today is plagued with various global environmental and social issues, and we are therefore pressed to take actions specifically for contributing to the realization of a sustainable society.

The Onward Group realizes that sustainable management is an important theme that forms the foundation for its corporate activities. Accordingly, we will continue to practice management that pursues coexistence with the global environment based on our mission statement of "enriching and adding color to people's lives while caring for the planet."

ANNUAL REPORT 2023

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03

Message from the Management

Value Creation Model and Sustainable Management

Environment

Social

Corporate Governance

FY02/23 Result

Financial Data and Corporate Information

Message from the President

Michinobu Yasumoto

President and CEO Onward Holdings Co., Ltd.

We will pursue new growth strategies based on the outcomes of our global business reforms.

Return to Operating Profit in FY02/23 for First Time in Four Years

In the Group's financial results for the year ended February28, 2023, net sales increased by ¥7,600 million from the previous fiscal year to ¥176,100 million, and a ¥6,300 million improvement in operating profit/loss brought us back into profit of ¥5,200 million. The greatest factor in the increase in revenue and profit was the recovery of the domestic apparel business, particularly Onward Kashiyama. In addition to the outcomes of our global business reforms that began in FY02/20, thorough inventory controls and discount sales reduction measures, among other factors, resulted in our gross profit margin increasing by 2.9pt from 52.0% in FY02/22 to 54.9% in FY02/23. Selling, general and administrative expense ratio also improved by 0.7pt from 52.7% to 52.0%. Thanks to these results, profits at all levels returned to profitability.

Net profit for the fiscal year fell by ¥5,500 million year on year to ¥3,100 million, but this was due to temporary factors, namely the posting of a massive gain on sale of real estate in the previous fiscal year.

Turning Changes in the Business Environment into Growth Opportunities

The business environment surrounding the fashion business has been undergoing major structural changes since before the COVID-19 pandemic. Specifically, those changes include rising consumer awareness of global environmental issues and the advancement of digital transformation (DX).

Further, the COVID-19 pandemic that started in early 2020 had a devastating impact on the global economy and people's lives. In Japan, however, since movement restrictions were lifted in 2022, the recovery trend in the flow of people has become more pronounced, and demand for fashion is recovering.

ANNUAL REPORT 2023

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