Slide 1: For the Fiscal Year Ended March 31, 2023
For the Fiscal Year Ended March 31, 2023 2023.05.10 UNITED ARROWS LTD.
Slide 2: Contents
pp. 0 4–22 | 01 Overview of FY23 Business Results pp. 23–26 | 02 Overview of FY24 Business Plan pp. 27 –28 | 03 Progress in Sustainability Initiatives pp. 29 –31 | 04 Reference Materials
Slide 3: Cautionary Statement
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 diffe
Slide 4: Overview of FY23 Business Results
01 Overview of FY23 Business Results PAGE | 4
Slide 5: Summary
01 Overview of FY23 Business Results Summary Sales and gross margin exceeded revised plan, absorbing the increase in SGA expenses due to special bonus, etc., and each income below operating income also exceeded revised plan Sales Gross margin SGA expenses Consolidated ¥130,135 million ¥60,816 millio
Slide 6: Non-consolidated sales
01 Overview of FY23 Business Results Non-consolidated sales By Channel vs. FY2020 vs. FY2022 Business Unit ¥ 98,790 million 90.9%*2 109.8%, -0.4pt (vs. Sales: 82.6%) Retail ¥ 66,641 million 82.2%, -6.9pt 113.3%, +1.5pt (vs. Sales: 55.7%) Online ¥ 30,358 million 103.9%, +2.8pt 102.0%, -2.1pt (vs. Sal
Slide 7: BS, Opening and Closing of Stores
01 Overview of FY23 Business Results BS Opening and Closing of Stores Balance of short- and Inventory Full-year results long-term loans payable ¥2,504 million ¥20,639 million Opened 7 Closed 19 vs. FY2022-End 32.1% vs. FY2022-End 100.5% 298 No. of stores as of period-end (down 17.0% from the end of
Slide 8: Consolidated P/L
01 Overview of FY23 Business Results Consolidated P/L (Millions of yen) Change/pt Compared with Change/pt FY2020 FY2022 FY2023 difference 3 years ago difference YoY Sales 157,412 118,384 130,135 (27,276) 82.7% 11,751 109.9% Excluding the impact of the change in consolidation structure* - - - - 90.8%
Slide 9: Consolidated P/L 4Q (3 months)
01 Overview of FY23 Business Results Consolidated P/L 4Q (3 months) (Millions of yen) FY2020 FY2022 FY2023 Change/pt Compared with Change/pt YoY 4Q 4Q 4Q difference 3 years ago difference Sales 38,319 31,479 34,042 (4,276) 88.8% 2,563 108.1% Excluding the impact of the change in consolidation struct
Slide 10: FY23 P/L vs. Revised Plan
01 Overview of FY23 Business Results FY23 P/L vs. Revised Plan (Millions of yen) FY2023 Revised vs. Revised plan FY2023 Results Change/vs. sales pt plan difference Sales 130,000 130,135 135 100.1% Gross profit 66,560 67,178 618 100.9% vs. Sales 51.2% 51.6% 0.4pt - SGA expenses 60,560 60,816 256 100.
Slide 11: FY23 4Q (3 months) P/L vs. Revised Plan
01 Overview of FY23 Business Results FY23 4Q (3 months) P/L vs. Revised Plan (Millions of yen) FY2023 4Q FY2023 4Q vs. Revised plan Revised plan Results Change/vs. sales pt difference Sales 33,906 34,042 135 100.4% Gross profit 15,924 16,543 618 103.9% vs. Sales 47.0% 48.6% 1.6pt - SGA expenses 16,3
Slide 12: Consolidated Gross Margin
01 Overview of FY23 Business Results Consolidated Gross Margin Compared with FY2023 3 years ago YoY Pt difference Pt difference Consolidated results 51.6% 0.8pt 1.7pt Excluding the impact of the change in 52.0% 1.2pt - revenue recognition standards UNITED ARROWS LTD. 51.4% 1.2pt 1.7pt Excluding the
Slide 13: Consolidated Gross Margin 4Q (3 months)
01 Overview of FY23 Business Results Consolidated Gross Margin 4Q (3 months) Compared with the FY2023 same period 3 years YoY 4Q ago Pt difference Pt difference Consolidated results 48.6% 3.4pt 1.9pt Excluding the impact of the change in 49.1% 3.9pt - revenue recognition standards UNITED ARROWS LTD.
Slide 14: Consolidated SGA Expenses
01 Overview of FY23 Business Results Consolidated SGA Expenses (Millions of yen) Change/pt Compared with 3 Change/pt FY2020 FY2022 FY2023 difference years ago difference YoY Total SGA expenses 71,224 57,407 60,816 (10,408) 85.4% 3,408 105.9% vs. Sales 45.2% 48.5% 46.7% 1.5pt - -1.8pt - Excluding the
Slide 15: Consolidated SGA Expenses 4Q (3 months)
01 Overview of FY23 Business Results Consolidated SGA Expenses 4Q (3 months) (Millions of yen) FY2020 FY2022 FY2023 Change/pt Compared with 3 Change/pt YoY 4Q 4Q 4Q difference years ago difference Total SGA expenses 17,450 14,842 16,569 (881) 95.0% 1,726 111.6% vs. Sales 45.5% 47.1% 48.7% 3.1pt - 1.
Slide 16: Non-consolidated Sales by Channel
01 Overview of FY23 Business Results Non-consolidated Sales by Channel (Millions of yen) Change/pt Compared with Change/pt FY2020 FY2022 FY2023 difference 3 years ago difference YoY Non-consolidated sales 129,402 107,482 118,434 (10,968) 91.5% 10,951 110.2% Excluding the impact of the change in - -
Slide 17: Non-consolidated Sales by Business
01 Overview of FY23 Business Results Non-consolidated Sales by Business (Millions of yen) Change/pt Compared with Change/pt FY2020 FY2022 FY2023 difference 3 years ago difference YoY Total business unit sales 111,162 90,000 98,790 (12,372) 88.9% 8,789 109.8% Excluding the impact of the change in rev
Slide 18: Consolidated BS
01 Overview of FY23 Business Results Consolidated BS (Millions of yen) As of Mar. 31, As of Mar. 31, vs. previous 2022 2023 Change term-end Total Assets 59,703 61,184 1,480 102.5% Composition ratio 100.0% 100.0% - - Current Assets 38,475 41,604 3,128 108.1% Composition ratio 64.4% 68.0% - Noncurrent
Slide 19: Consolidated CF
01 Overview of FY23 Business Results Consolidated CF (Millions of yen) FY2022 FY2023 Major breakdown of the results for the term Cash flows from operating 5,828 10,588 activities (sub-total) Income before income taxes 6,548 Cash flows from operating Increase in provision for bonuses 1,216 6,891 10,2
Slide 20: COEN CO., LTD. / UNITED ARROWS TAIWAN LTD.
01 Overview of FY23 Business Results COEN CO., LTD. Saw increase in both revenue and income February – January • Sales were ¥10.7 billion, 102.7% YoY, 78.3% compared with 3 years ago, (80.6% from 3 years ago, excluding the impact of change in revenue recognition standards) • Gross margin improved by
Slide 21: Opening and Closing of Stores
01 Overview of FY23 Business Results Opening and Closing of Stores Opened 7 Closed 19 No. of stores as of period-end 298 *Down 17.0% from end of March 2020 No. of stores at No. of stores at the previous Opened Closed the period-end period-end Total Group 310 7 19 298 UNITED ARROWS LTD. 216 4 5 215 C
Slide 22: UNITED ARROWS LTD. Retail Stores Opened/Closed
01 Overview of FY23 Business Results UNITED ARROWS LTD. Retail Stores Opened/Closed No. of stores at the No. of stores at the previous period- Opened Closed period-end end UNITED ARROWS LTD. Total 216 4 5 215 Trend-Conscious Market Total 10 6 1 3 10 4 UNITED ARROWS 14 0 0 14 (General Merchandise Sto
Slide 23: Overview of FY24 Business Plan
02 Overview of FY24 Business Plan PAGE | 23
Slide 24: Consolidated Business Plan
02 Overview of FY24 Business Plan Consolidated Business Plan (Millions of yen) YoY Change/vs. sales pt FY2023 Results FY 2024 Plan difference Sales 130,135 138,300 8,164 106.3% Gross profit 67,178 72,100 4,921 107.3% vs. Sales 51.6% 52.1% 0.5pt - SGA expenses 60,816 65,100 4,283 107.0% vs. Sales 46.
Slide 25: Non-consolidated Sales Plan
02 Overview of FY24 Business Plan Non-consolidated Sales Plan (Millions of yen) FY2024 FY2024 FY2024 1H YoY 2H YoY Full YoY Non-consolidated sales 54,562 104.9% 70,812 106.6% 125,375 105.9% Retail + Online Existing Stores - 106.3% - 108.1% - 107.3% Retail Existing Stores - 104.9% - 106.0% - 105.5% O
Slide 26: Store Opening/Closing Plan
02 Overview of FY24 Business Plan Store Opening/Closing Plan Opening 9 Closing 7 No. of stores as of period-end 300 No. of stores at No. of stores as the previous Opened Closed of period-end period-end (forecast) Total Group 298 9 7 300 UNITED ARROWS LTD. 215 9 4 220 COEN CO., LTD. 75 0 3 72 UNITED
Slide 27: Progress in Sustainability Initiatives
03 Progress in Sustainability Initiatives PAGE | 27
Slide 28: Acquired SBT Certification from SBTi, an International Initiative
03 Progress in Sustainability Initiatives Acquired SBT Certification from “SBTi,” an International Initiative Carbon Neutrality (towards a carbon-neutral world) Evaluated that our greenhouse gas (CO2) emission reduction target (ratio of FY2031 target vs. FY2020 real) conforms to the Paris Agreement
Slide 29: Reference Materials
04 Reference Materials PAGE | 29
Slide 30: FY24 Group Management Policy: Take steps to provide new value
04 Reference Materials: FY24 Group Management Policy providing excitement - connecting with customers widely and deeply Take steps to provide new value PAGE | 30
Slide 31: Three Key Strategies
04 Reference Materials: FY24 Group Management Policy Three Key Strategies Strategy Strategy Strategy • Grow and expand existing • Develop non-apparel • Promote OMO businesses businesses • Optimize the supply chain Top-line growth • Global expansion Improvement of gross margin • Strengthen brand appe