Onward : Consolidated Financial Results for the Three Months Ended November 30, 2022

Consolidated Financial Results

for the Nine Months Ended November 30, 2022

[Japanese GAAP]

January 12, 2023

Company name: Onward Holdings Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange

Securities code: 8016

URL: https://www.onward-hd.co.jp/en/

Representative: Michinobu Yasumoto, President and CEO

Contact: Osamu Sato, Director in charge of Finance, Accounting, Investor Relations

Phone: [phone]

Scheduled date of filing quarterly securities report: January 13, 2023

Scheduled date of commencing dividend payments: -

Availability of supplementary materials on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled (for institutional investors, securities analysts, and the press)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Performance for the Nine Months Ended November 30, 2022 (March 1, 2022 - November 30,

2022)
(1) Consolidated Operating Results (cumulative)	(% indicates changes from the previous corresponding period.)
		Net sales			Operating profit		Recurring profit		Profit attributable to
						owners of parent
	Nine months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	November 30, 2022	130,397	4.9		4,315	-	4,698	-	2,723	(66.3)
	November 30, 2021	124,355	(6.0)		(948)	-	(759)	-	8,082	-

(Note) Comprehensive income: Nine months ended November 30, 2022: 9,849 million yen [(2.1)%] Nine months ended November 30, 2021: 10,058 million yen [-%]

	Basic earnings	Diluted earnings
	per share	per share
Nine months ended	Yen	Yen
November 30, 2022	20.08	20.05
November 30, 2021	59.60	59.48

(Reference) EBITDA (operating profit + depreciation and amortization):

Nine months ended November 30, 2022: 8,244 million yen [191.0%]

Nine months ended November 30, 2021: 2,832 million yen [-%]

(2) Consolidated Financial Position

	Total assets	Net assets	Shareholders'
	equity ratio
	Million yen	Million yen	%
As of November 30, 2022	166,028	84,938	45.0
As of February 28, 2022	157,727	77,257	42.4

(Reference) Shareholders' equity: As of November 30, 2022: 74,718 million yen As of February 28, 2022: 66,886 million yen

2. Dividends

				Annual dividends per share
		1st quarter-		2nd quarter-		3rd quarter-		Year-end		Total
		end		end		end
		Yen		Yen		Yen		Yen		Yen
Fiscal year ended		-		-		-	12.00	12.00
February 28, 2022
Fiscal year ending		-		-		-
February 28, 2023
Fiscal year ending
February 28, 2023							12.00	12.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently: No

3. Consolidated Performance Forecast for the Fiscal Year Ending February 28, 2023 (March 1, 2022 - February 28, 2023)

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Recurring profit	to owners of
		per share
							parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	175,000	3.9	5,000	-	5,200	925.1	2,600	(69.7)	19.17

(Note) Revision to the performance forecast announced most recently: Yes (Reference) EBITDA (operating profit + depreciation and amortization):

Full year ending February 28, 2023 (forecast): 10,000 million yen [155.4%]

Full year ended February 28, 2022: 3,915 million yen [-%]

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
   Newly included: - (Company name:)
   Excluded: One company (Company name: Onward Beach Resort Guam, Inc.)
2. Application of special accounting methods for the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Total number of issued shares (common stock)
6. 1. Total number of issued shares at the end of the period (including treasury shares):

As of November 30, 2022:	157,921,669 shares
As of February 28, 2022:	157,921,669 shares
2) Total number of treasury shares at the end of the period:
As of November 30, 2022:	22,235,698 shares
As of February 28, 2022:	22,287,771 shares
3) Average number of shares outstanding during the period:
Nine months ended November 30, 2022:	135,642,227 shares
Nine months ended November 30, 2021:	135,614,518 shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of performance forecast and other notes

The performance forecast and other forward-looking statements herein are based on information currently available to

the Company and certain assumptions that have been deemed reasonable. Actual performance may differ significantly

from these forecasts due to a wide range of factors. For conditions used as the assumptions for the performance

forecast and notes on the use of performance forecast, please refer to "1. Qualitative Information on Quarterly

Financial Results for the Period under Review (3) Explanation of Consolidated Performance Forecast and Other

Forward-looking Information" on page 3 of the Attachments.

Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results for the Period under Review	2
(1)	Explanation of Operating Results	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Performance Forecast and Other Forward-looking Information	3
2. Quarterly Consolidated Financial Statements and Principal Notes	4
(1)	Quarterly Consolidated Balance Sheets	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	Quarterly Consolidated Statements of Income	6
	Quarterly Consolidated Statements of Comprehensive Income	7
(3)	Notes to Quarterly Consolidated Financial Statements	8
	(Uncertainties of entity's ability to continue as going concern)	8
	(Notes when there are significant changes in amounts of shareholders' equity)	8
	(Changes in significant subsidiaries during the period under review)	8
	(Changes in accounting policies)	8
	(Additional information)	8
	(Segment information, etc.)	9
	(Significant events after reporting period)	10

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1. Qualitative Information on Quarterly Financial Results for the Period under Review

(1) Explanation of Operating Results

During the nine months ended November 30, 2022, the outlook for the Japanese economy remained uncertain due to soaring prices of energy resources and raw materials caused by the international situation, as well as the ongoing depreciation of the yen, which outweighed the benefits of the recovery trend that is supported by the progress in normalizing economic activities on the back of the relaxation of behavioral restrictions related to COVID-19.

In these circumstances, Click and Try, an OMO (Online Merges with Offline) service that enables customers to order products from the official online store and to try on and purchase them at physical stores, had user numbers that remained at a high level, contributing to sales expansion at physical stores. In addition, based on the policy of concentrating management resources on its own brand business as part of global business reforms, the Company is moving ahead with business in both the apparel and lifestyle segments with the aim of achieving the goals outlined in ONWARD VISION 2030, the Company's medium-tolong-term management vision formulated in April 2021. During the period under review, the Company acquired the trademark rights in Japan to the American lifestyle brand JOSEPH ABBOUD to further strengthen and promote the brand business. The Company will go about actively opening up stores within new sales channels for the brand such as shopping centers, street-facing shops, and third-party online marketplaces, and of course, within the existing department store sales channel as well, and will significantly expand its product lines to accelerate the growth of JOSEPH ABBOUD into the Group's core brand.

As a result of the above, consolidated net sales amounted to 130,397 million yen (a 4.9% increase year on year), consolidated operating profit amounted to 4,315 million yen (an operating loss of 948 million yen for the same period of the previous fiscal year), consolidated recurring profit amounted to 4,698 million yen (a recurring loss of 759 million yen for the same period of the previous fiscal year), and profit attributable to owners of parent amounted to 2,723 million yen (a 66.3% decrease year on year).

Furthermore, the Group has adopted EBITDA (operating profit + depreciation and amortization) as a management indicator with the purpose of enabling convenient comparisons between companies regardless of differences in accounting standards, amid its efforts to accelerate growth through enhancement and expansion of business foundations that utilize creation of new businesses, M&A, etc.

EBITDA for the nine months ended November 30, 2022 was 8,244 million yen (a 191.0% increase year on year).

Status by segment is as follows.

[Apparel Business]

In the domestic business, at Onward Kashiyama Co., Ltd., a core operating company, sales continued to increase at OMO-type stores, which introduced the Click and Try service, contributing to strong sales at physical stores, primarily department stores. At Island Co., Ltd., which operates Grace Continental, sales recovered due to successful sales promotion initiatives. In addition, sales increased at Onward Personal Style Co., Ltd., which develops the KASHIYAMA brand, owing to revisions to sales prices and profitability improved thanks to reduction of fixed costs resulting from enhanced business efficiency.

In the overseas business, sales decreased, impacted by withdrawal from unprofitable businesses in Europe under the global business reforms.

As a result, sales increased, with a significant return to profitability in the Apparel Business.

[Lifestyle Business]

Sales increased steadily at Chacott Co., Ltd., which operates a wellness business, due to strong performance of products in its mainstay ballet and fitness wear merchandise line. At Yamato Co., Ltd., which conducts a gift catalogue business, both sales and profit increased due to sustained growth in bridal-related demand. Creative

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