Onward Holdings Co., Ltd. · TSE:8016

Onward — Q3 FY02/23 Earnings Presentation

40 slides from Onward's earnings presentation, Jan 12, 2023

  1. Slide 1: FY02/23 Q3 Results Presentation Material

    FY02/23 Q3 Results Presentation Material January 12, 2023 © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD.

  2. Slide 2: Onward Group's Raison d'Être

    Onward Group’s Raison d’Être Enriching and Adding Color to People’s Lives while Caring for the Planet Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 12

  3. Slide 3: Contents

    Contents 01 Financial Summary P. 3 1. Financial Highlights P. 3 2. FY02/23 Q3 Consolidated Results P. 6 3. FY02/23 Full-Year Forecast Revision P.11 02 TOPICS P.13 1. OMO Strategy P.13 2. Apparel Business P.15 3. Lifestyle Business P.17 03 Sustainable Management P.19 04 Financial Situation P.21 Copyr

  4. Slide 4: Financial Summary

    01 Financial Summary 1. Financial Highlights 2. FY02/23 Q3 Consolidated Results Copyright © ONWARD HOLDINGS CO., LTD. 3. FY02/23 Full-Year Forecast Revision © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 34

  5. Slide 5: Financial Highlights: FY02/23 Cumulative Q3 Consolidated Results

    Financial Highlights: FY02/23 Cumulative Q3 Consolidated Results Net Sales Operating Profit Recurring Profit Net Profit 1 3 0 . 4 billion yen 4 . 3 billion yen 4 . 7 billion yen 2 . 7 billion yen +6.0 billion yen YoY +5.3 billion yen YoY +5.5 billion yen YoY -5.4 billion yen YoY ◼ Cumulative Q3 net

  6. Slide 6: Financial Highlights: FY02/23 Full-Year Forecast Revision

    Financial Highlights: FY02/23 Full-Year Forecast Revision Net Sales Operating Profit Recurring Profit Net Profit 175.0 billion yen 5.0 billion yen 5.2 billion yen 2.6 billion yen +1.2 billion yen vs. previous +0.9 billion yen vs. previous +0.9 billion yen vs. previous +0.4 billion yen vs. previous f

  7. Slide 7: Financial Summary: Q3 Consolidated Results

    01 Financial Summary 1. Financial Highlights 2. FY02/23 Q3 Consolidated Results Copyright © ONWARD HOLDINGS CO., LTD. 3. FY02/23 Full-Year Forecast Revision © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 67

  8. Slide 8: Cumulative Q3: Consolidated Results

    FY02/23 Cumulative Q3: Consolidated Results ◼ Net sales increased by 6 billion yen (5%) YoY to 130.4 billion yen. ◼ Operating profit/loss improved by 5.3 billion yen YoY, achieving operating profit of 4.3 billion yen. FY02/22 FY02/23 YoY Cumulative Cumulative % of Sales % of Sales % of Sales Change

  9. Slide 9: Cumulative Q3: Net Sales & Operating Profit by Segment

    FY02/23 Cumulative Q3: Net Sales & Operating Profit by Segment ◼ The domestic apparel business posted higher sales, and operating profit turned to the black. The lifestyle business recorded growth in net sales and operating profit. ◼ For overseas businesses, the apparel business posted lower net sal

  10. Slide 10: Cumulative Q3: Net Sales & Operating Profit Increases/Decreases by Company

    FY02/23 Cumulative Q3: Net Sales & Operating Profit Increases/Decreases by Company ◼ Net sales increased by 6 billion yen YoY, with a 7 billion yen increase at Onward Kashiyama and other factors absorbing the 3.7 billion yen decline in Europe after withdrawing from the Italian business. ◼ Operating

  11. Slide 11: Cumulative Q3: Net Sales by Channel

    FY02/23 Cumulative Q3: Net Sales by Channel ◼ Net sales at physical stores total (department stores, shopping centers and other) increased by 10％ YoY. (16% increase on a like-for-like store basis, excluding closed stores). ◼ E-commerce sales increased by 10% YoY. The e-commerce ratio and the directl

  12. Slide 12: Financial Summary: Full-Year Forecast Revision

    01 Financial Summary 1. Financial Highlights 2. FY02/23 Q3 Consolidated Results Copyright © ONWARD HOLDINGS CO., LTD. 3. FY02/23 Full-Year Forecast Revision © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 11 13

  13. Slide 13: Full-Year Forecast Revision

    FY02/23: Full-Year Forecast Revision ◼ Net sales were revised upward by 1.2 billion yen from the previous forecast, and are forecast to increase 6.5 billion yen YoY to 175 billion yen. ◼ Operating profit/loss was revised upward by 900 million yen from the previous forecast, a 6.1 billion yen improve

  14. Slide 14: TOPICS

    02 TOPICS 1. OMO Strategy 2. Apparel Business 3. Lifestyle Business Copyright © ONWARD HOLDINGS CO., LTD. . © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 13 15

  15. Slide 15: 1. OMO Strategy

    1. OMO Strategy ◼ Number of Onward Kashiyama stores implementing its “Click & Try” OMO service increased to 330. ◼ Net sales level of existing stores offering the OMO service recovered to 100% of FY02/20 Q3 level, 19 pp higher than stores that don’t offer the service (81%). ◼ Number of items reserve

  16. Slide 16: TOPICS: Apparel Business

    02 TOPICS 1. OMO Strategy 2. Apparel Business 3. Lifestyle Business Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 15 17

  17. Slide 17: 2. Apparel Business

    2. Apparel Business Nijyusanku 【Onward Kashiyama】 ◼ Cumulative Q3 like-for-like store sales significantly increased by +32% YoY. ◼ Average customer spend increased due to product value improvement and price revisions for some products. ◼ Sales of skirts and dresses more than doubled in response to i

  18. Slide 18: TOPICS: Lifestyle Business

    02 TOPICS 1. OMO Strategy 2. Apparel Business 3. Lifestyle Business Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 17 19

  19. Slide 19: 3. Lifestyle Business

    3. Lifestyle Business Creative Yoko ◼ A collaboration store “PET PARADISE X Ueshima Coffee Company” has opened. Sales started off strong. • A pet-friendly collaboration shop/café “PET PARADISE X Ueshima Coffee Company” opened on Thursday, October 20th, 2022 at Fukaya-Hanazono Premium Outlet. • By of

  20. Slide 20: Sustainable Management

    03 Sustainable Management Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 19 21

  21. Slide 21: Sustainable Management

    Sustainable Management Onward Kashiyama Onward Trading • ”steppi by UNFILO”, launched in the spring of 2022, • As part of joint upcycling* initiatives, Onward Trading and won the Good Design Award 2022 (sponsored by ANA jointly developed “ANA Special Slippers” made from the Japan Institute of Design

  22. Slide 22: Financial Situation

    04 Financial Situation Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 21 23

  23. Slide 23: Consolidated Balance Sheet

    Consolidated Balance Sheet ◼ Net assets increased to 84.9 billion yen, up 7.7 billion yen from the end of FY02/22. ◼ Shareholder's equity ratio increased to 45.0%, up 2.6 pp from the end of FY 02/22. ◼ Current ratio increased to 113.8%, up 5.3 pp from the end of FY02/22, further improving management

  24. Slide 24: EBITDA/Cash Flows

    EBITDA/Cash Flows ▍EBITDA ◼ EBITDA increased 5.4 billion yen 8.2 billion yen YoY to 8.2 billion yen. +5.4 billion yen (Expected to increase to 10 billion yen for the full year) 2.8 billion yen FY02/22 FY02/23 Cumulative Q3 Cumulative Q3 ▍Cash Flows ◼ Cash flows from operating activities amounted to

  25. Slide 25: Capital Expenditures/Depreciation and Amortization

    Capital Expenditures/Depreciation and Amortization ▍Capital Expenditures 4.1 ◼ Capital expenditures were 4.1 billion yen, billion yen up 400 million yen YoY. 3.7 billion yen FY02/22 FY02/23 Cumulative Q3 Cumulative Q3 ▍Depreciation and Amortization ◼ Depreciation and amortization were 3.3 billion ye

  26. Slide 26: DATA BOOK

    05 DATA BOOK Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 25 27

  27. Slide 27: Q3: Consolidated Financial Results

    FY02/23 Q3: Consolidated Financial Results FY02/22 FY02/23 YoY % of Sales (Million yen) Q3 % of Sales Q3 % of Sales Change % of Change Change 1 Net Sales 43,570 - 48,231 - +4,661 +10.7% - 2 Gross Profit 24,441 56.1% 27,890 57.8% +3,449 +14.1% +1.7% 3 SG&A Expenses 22,095 50.7% 23,768 49.3% +1,673 +7

  28. Slide 28: Q3: Net Sales and Operating Profit by Segment

    FY02/23 Q3: Net Sales and Operating Profit by Segment FY02/23 YoY FY02/22 (Million yen) Q3 Q3 Change % of Change Net Sales 33,598 35,699 +2,101 +6.3% 1 Apparel Operating Profit 2,063 3,585 +1,522 +73.8% Net Sales 9,549 10,045 +496 +5.2% 2 Lifestyle Operating Profit 879 949 +70 +8.0% Net Sales 43,147

  29. Slide 29: Q3: Net Sales and Operating Profit by Company

    FY02/23 Q3: Net Sales and Operating Profit by Company FY02/22 FY02/23 YoY (Million yen) Q3 Q3 Change % of Change Net Sales 26,433 28,815 +2,382 +9.0% 1 Onward Kashiyama + HD Operating Profit 1,967 3,336 +1,369 +69.6% Net Sales 3,295 3,319 +24 +0.7% 2 Onward Trading Operating Profit 203 205 +2 +1.0%

  30. Slide 30: Q3: Changes in Consolidated Operating Profit

    FY02/23 Q3: Changes in Consolidated Operating Profit 1H Q3 (Billion yen) +0.2 +0.2 +0.0 +4.3 +1.4 -0.2 +0.5 +1.8 +3.6 +0.3 billion yen -0.8 +3.6 billion yen -0.9 Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 29

  31. Slide 31: Q3: Net Sales & Operating Profit Increases/Decreases by Company

    FY02/23 Q3: Net Sales & Operating Profit Increases/Decreases by Company (Billion yen) ▍Net Sales 48.2 (+4.7) 43.6 FY02/22 Onward Onward Island Chacott Creative Yamato Other Europe America Asia Guam Consolidated FY02/23 Q3 Kashiyama + Trading Yoko domestic Resort elimination Q3 HD businesses ▍Operati

  32. Slide 32: Q3: Net Sales by Channel

    FY02/23 Q3: Net Sales by Channel Directly Shopping Directly Other E- Department Physical E-Commerce E-Commerce Managed E- Centers and Managed E- Commerce Total Sales Stores Stores Total Total Ratio Commerce (Million yen) Other Commerce Platforms Ratio 1 Onward Kashiyama 12,001 9,257 21,258 6,658 899

  33. Slide 33: Cumulative Q3: Net Sales & Operating Profit by Company

    FY02/23 Cumulative Q3: Net Sales & Operating Profit by Company FY02/22 FY02/23 YoY (Million yen) Cumulative Q3 Cumulative Q3 Change % of Change Net Sales 67,825 74,870 +7,045 +10.4% 1 Onward Kashiyama + HD Operating Profit -1,271 3,668 +4,939 Net Sales 10,873 10,184 -689 -6.3% 2 Onward Trading Opera

  34. Slide 34: Full-Year: Performance Forecast by Segment (YoY)

    FY02/23 Full-Year: Performance Forecast by Segment (YoY) FY02/22 FY02/23 Change % of Change (B-A) (B/A) Results (A) Current Forecast (Million yen) (announced in Jan-2023) (B) Net Sales 120,516 127,246 +6,730 +5.6% 1 Apparel Operating Profit -1,254 5,213 +6,467 Net Sales 37,905 38,891 +986 +2.6% 2 Li

  35. Slide 35: Full-Year: Performance Forecast by Company (YoY)

    FY02/23 Full-Year: Performance Forecast by Company (YoY) FY02/22 FY02/23 Change % of Change (B-A) (B/A) Current Forecast Results (A) (announced in Jan-2023) (B) (Million yen) Net Sales 91,395 99,590 +8,195 +9.0% 1 Onward Kashiyama + HD Operating Profit -1,857 4,366 +6,223 Net Sales 14,760 13,768 -99

  36. Slide 36: End-Q3 FY02/23: Consolidated Balance Sheet

    End-Q3 FY02/23: Consolidated Balance Sheet FY02/22 FY02/23 Change Reasons for change (Billion yen) End End-Q3 1 Total Assets 157.7 166.0 +8.3 2 Current Assets 60.5 67.7 +7.2 3 Cash and Deposits 15.2 13.0 -2.2 Accounts 4 14.2 17.6 +3.4 Seasonal factors and increased net sales Receivable-trade Seasona

  37. Slide 37: Q3: Breakdown of SG&A Expenses, Non-Operating and Extraordinary Profit/Loss

    FY02/23 Q3: Breakdown of SG&A Expenses, Non-Operating Profit/Loss and Extraordinary Profit/Loss (Consolidated) FY02/22 FY02/23 YoY (Million yen) FY02/22 FY02/23 YoY (Million yen) Q3 Q3 (% of Change) Q3 Q3 (% of Change) 10 Non-Operating Profit 347 139 -59.9% 1 Personnel 8,641 8,058 -6.7% 11 Interest

  38. Slide 38: Cumulative Q3: Breakdown of SG&A Expenses, Non-Operating and Extraordinary Profit/Loss

    FY02/23 Cumulative Q3: Breakdown of SG&A Expenses, Non-Operating Profit/Loss and Extraordinary Profit/Loss (Consolidated) FY02/22 FY02/23 YoY FY02/22 FY02/23 YoY (Million yen) (Million yen) Cumulative Q3 Cumulative Q3 (% of Change) Cumulative Q3 Cumulative Q3 (% of Change) 10 Non-Operating Profit 1,

  39. Slide 39: Q3 / Cumulative Q3: Results by Groups

    FY02/23 Q3 / Cumulative Q3: Results by Groups FY02/22 FY02/23 YoY (Change) YoY (% of Change) (Million yen) Q3 Cumulative Q3 Q3 Cumulative Q3 Q3 Cumulative Q3 Q3 Cumulative Q3 1 Net Sales 26,433 67,825 28,815 74,870 +2,382 +7,045 +9.0% +10.4% Onward Kashiyama 2 Gross Profit 16,122 38,977 18,177 45,33

  40. Slide 40: The information in this presentation is not a solicitation to purchase or sell Onward

    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

Onward Holdings — Q3 FY02/23 Earnings Presentation on 6ix