Onward Holdings Co., Ltd. · TSE:8016

Onward — 1H FY2024 Earnings Presentation

31 slides from Onward's earnings presentation, Oct 3, 2024

  1. Slide 1: FY02/25 (FY2024) 1H Results Presentation Material

    FY02/25 (FY2024) 1H Results Presentation Material October 3, 2024 © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

  2. Slide 2: The Onward Group's Mission Statement

    The Onward Group’s Mission Statement Enriching and Adding Color to People’s Lives while Caring for the Planet Keep moving forward as a “lifestyle and culture creation company” that contributes to creating lifestyles with richness and colors in harmony with the planet through “customer-centric manage

  3. Slide 3: Contents

    Contents Consolidated Financial Results and 01 Performance Forecasts Highlights 4 FY2024 1H Consolidated Financial 02 Results 8 FY2024 Full Year Consolidated 03 Performance Forecasts 15 04 Financial Situation 18 05 Topics 21 Copyright © ONWARD HOLDINGS CO., LTD. 06 Appendix 27 © Copyright 2007-2015

  4. Slide 4: Consolidated Financial Results and Performance Forecasts Highlights

    01 Consolidated Financial Results and Performance Forecasts Highlights Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 44

  5. Slide 5: Q2 / 1H: Consolidated Financial Results Highlights

    FY2024 Q2 / 1H : Consolidated Financial Results Highlights Net Sales Operating Profit Recurring Profit Net Profit Q2 43.7 billion yen 0.2 billion yen 0.02 billion yen 0.1 billion yen +8.0% YoY +3.2 bn yen YoY +0.5 bn yen YoY +0.5 bn yen YoY +0.6 bn yen YoY 1H 95.1 billion yen 5.3 billion yen 5.2 bil

  6. Slide 6: 2H / Full-Year: Performance Forecasts Highlights

    FY2024 2H / Full-Year : Performance Forecasts Highlights Net Sales Operating Profit Recurring Profit Net Profit 2H 114.9 billion yen 7.2 billion yen 7.0 billion yen 4.1 billion yen +15.8% YoY +16.1% YoY +22.3% YoY +10.5% YoY +15.7 bn yen YoY +1.0 bn yen YoY +1.3 bn yen YoY +0.4 bn yen YoY Full Year

  7. Slide 7: Shareholder Returns

    Shareholder Returns [Introduction of Interim Dividend System] ▍Dividend Policy The Company views the distribution of profits to shareholders as one of management’s highest priority issues, and sets a guideline of payout ratio at 40% or more, ensuring stable and appropriate distribution of profits in

  8. Slide 8: FY2024 1H Consolidated Financial Results

    02 FY2024 1H Consolidated Financial Results Copyright © Copyright ONWARD HOLDINGS © ONWARD LTD. CO.,LTD. HOLDINGS CO., © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 88

  9. Slide 9: 1H: Consolidated Financial Results

    FY2024 1H : Consolidated Financial Results ◼ Net sales increased to 95.1 billion yen, up 5.2% (+4.7 billion yen) YoY. ◼ Operating profit increased to 5.3 billion yen, up 4.6% (+0.2 billion yen) YoY. ◼ Net profit increased to 4.1 billion yen, up 43.5% (+1.2 billion yen) YoY. ◼ EBITDA increased to 7.7

  10. Slide 10: 1H: Results by Company

    FY2024 1H : Results by Company 1H Results YoY （Million yen） FY2024 FY2023 Change % of Change 1 Onward Kashiyama+HD Net Sales 54,722 51,566 +3,156 +6.1% Operating Profit 2,938 3,210 - 272 - 8.5% 2 Onward Net Sales 8,952 8,209 +743 +9.1% Operating Corporate Design Profit 990 825 +165 +20.0% 3 Island N

  11. Slide 11: 1H: Net Sales by Channel

    FY2024 1H : Net Sales by Channel ◼ Net sales at physical stores total (department stores, shopping centers and other) increased by 4.9% YoY. ◼ E-commerce net sales increased by 5.5% YoY. The e-commerce ratio and the directly managed e-commerce ratio remained at a high level at 29.4% and 85.5%, respe

  12. Slide 12: Brand Businesses

    Brand Businesses UNFILO 【Onward Kashiyama】 Nijyusanku 【Onward Kashiyama】 It increases sales by linking Aggressive deployment of newly developed functional “wearable today” merchandise products with sales promotions. (MD) in response to climate change was successful. 1H Net Sales 1H Net Sales (YoY) +

  13. Slide 13: OMO Service "Click & Try"

    OMO Service “Click & Try” ◼ The number of stores offering the "Click & Try" service increased by 47 stores from the end of the same period of the previous fiscal year to 407 stores, and the adoption rate increased to 63%. ◼ The number of items reserved increased by 18％ YoY to 131,000. ◼ The net sale

  14. Slide 14: "ONWARD CROSSET SELECT (OCS)"

    “ONWARD CROSSET SELECT (OCS) ” ◼ Implemented the "Click & Try" OMO service, offering an assortment of Onward Kashiyama's multiple brands. ◼ There are 147 stores nationwide as of the end of August 2024, an increase of 29 stores from the end of FY2023. ◼ The YoY growth of 1H sales at OCS stores was 21

  15. Slide 15: FY2024 Full Year Consolidated Performance Forecasts

    03 FY2024 Full Year Consolidated Performance Forecasts Copyright © Copyright ONWARD HOLDINGS © ONWARD LTD. CO.,LTD. HOLDINGS CO., © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 15 15

  16. Slide 16: Full-Year: Consolidated Performance Forecast

    FY2024 Full-Year : Consolidated Performance Forecast ◼ The Company revised upward the full-year performance forecast by maintaining its performance forecast for the second half and adding the performance forecast for WEGO, which is included in the scope of consolidation in October 2024. ◼ Net sales

  17. Slide 17: Full-Year: Performance Forecast by Company

    FY2024 Full-Year : Performance Forecast by Company FY2024 FY2023 YoY （Million yen） Forecust Results Change % of Change 1 Onward Kashiyama+HD Net Sales 114,966 109,491 +5,475 +5.0% Operating Profit 8,741 8,189 +552 +6.7% 2 Onward Net Sales 18,346 17,188 +1,158 +6.7% Operating Corporate Design Profit

  18. Slide 18: Financial Situation

    04 Financial Situation Copyright © Copyright ONWARD HOLDINGS © ONWARD LTD. CO.,LTD. HOLDINGS CO., © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 18 18

  19. Slide 19: 1H: EBITDA, Net Assets, Shareholders' Equity Ratio, Current Ratio

    FY2024 1H : EBITDA, Net Assets, Shareholders’ Equity Ratio, Current Ratio ◼ EBITDA amounted to 7.7 billion yen, up 4.1% YoY. ◼ Net assets were 81.3 billion yen, down 4.3% (by 3.6 billion yen) from the end of the previous fiscal year due to the decrease in minority interests. ◼ The shareholders’ equi

  20. Slide 20: 1H: Cash Flows, Capital Expenditures, Depreciation and Amortization

    FY2024 1H : Cash Flows, Capital Expenditures, Depreciation and Amortization ▍Cash Flows ◼ Cash flows from operating activities amounted to 6.3 billion yen mainly due to an increase in profit before income taxes and an increase in inventories. ◼ Cash flows used in investing activities amounted to 30

  21. Slide 21: Topics

    05 Topics Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 21 21

  22. Slide 22: Making WEGO Co., Ltd. a Wholly-Owned Subsidiary

    Making WEGO Co., Ltd. a Wholly-Owned Subsidiary ◼ The Company entered into a capital and business alliance with WEGO in May 2023 and acquired 20.27% of its outstanding shares, making it an equity-method affiliate. ◼ As a result of promoting the business revitalization of WEGO by utilizing the Compan

  23. Slide 23: Purpose of Making WEGO Co., Ltd. a Wholly-Owned Subsidiary

    Purpose of Making WEGO Co., Ltd. a Wholly-Owned Subsidiary ◼ Number of registered members The total number of members has grown to approx. 8.7 million, by combining the number of members of both companies. (as of end-February 2024: simple sum) ◼ Customer base A feature of WEGO is that approx. 70% of

  24. Slide 24: The "product" Brand Rebranded

    The “product” Brand Rebranded The “product” brand, KOKOBUY Co., Ltd.’s line of natural organic products, was rebranded in July 2024. It strengthened mass distribution through drug stores, variety stores and others, in addition to its main sales channel of hair salons, to promote business expansion.

  25. Slide 25: Initiative for Human Capital Management

    Initiative for Human Capital Management [Achieved 10% increase in annual salary and starting salary of 240,000 yen (up 33,000 yen) for sales human resources] Onward Kashiyama Co., Ltd. made revisions to its personnel system in March 2024, to strengthen investment in human resources working as fashio

  26. Slide 26: Initiative for Sustainable Management

    Initiative for Sustainable Management [10th anniversary of Onward Reuse Park in Kichijoji] Our environmental concept store “Onward Reuse Park in Kichijoji” was opened in 2014 as the industry’s first store for environmental and social initiatives and celebrated its 10th anniversary in March 2024. Onw

  27. Slide 27: Appendix

    27 Copyright © Copyright ONWARD HOLDINGS © ONWARD LTD. CO.,LTD. HOLDINGS CO., 27 © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 06 Appendix

  28. Slide 28: 1H: SG&A Expenses / Items that Affect Net Profit

    FY2024 1H : SG&A Expenses / Items that Affect Net Profit YoY YoY FY2024 1H FY2023 1H FY2024 1H FY2023 1H (% of Change) （Million yen） (% of Change) （Million yen） 8 Operating Profit 5,255 5,022 +4.6% 1 Personnel 18,378 18,103 +1.5% 9 Non-Operating Profit 306 317 - 3.5% 2 Rent 12,719 12,201 +4.2% 10 In

  29. Slide 29: 1H: Consolidated Balance Sheet

    FY2024 1H : Consolidated Balance Sheet （Billion yen） End-FY2024 1H End-FY2023 Change ◼ Inventory 1 Total Assets 169.7 171.3 -1.6 Increase due to a seasonal factor caused by purchases of fall and 2 Current Assets 72.1 73.4 -1.3 winter products. 3 Cash and Deposits 13.6 14.1 -0.5 Accounts ◼ Borrowings

  30. Slide 30: Onward Kashiyama: 1H Results / Full-Year Forecasts by Group

    FY2024 : 1H Results / Full-Year Forecasts by Group 1H Results Full-Year Forecasts （Million yen） FY2024 FY2023 Change % of Change FY2024 FY2023 Change % of Change 1 Net Sales 54,722 51,566 +3,156 +6.1% 114,966 109,491 +5,475 +5.0% Onward Kashiyama Gross Profit 31,898 31,245 +653 +2.1% 68,859 65,428 +

  31. Slide 31: Disclaimer

    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 the company at the time this presentation was prepared. Onward Holdings makes no guarantee regarding the accuracy of the information i

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