Onward Holdings Co., Ltd. · TSE:8016

Onward — Q1 FY2023 Earnings Presentation

33 slides from Onward's earnings presentation, Jul 6, 2023

  1. Slide 1: FY02/24 (FY2023) Q1 Results Presentation Material

    FY02/24 (FY2023) Q1 Results Presentation Material July 6, 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. 22

  3. Slide 3: Contents

    Contents Consolidated Financial Results and 01 Performance Forecasts Highlights 4 FY2023 Q1 Consolidated Financial 02 Results 10 FY2023 First Half and Full Year 03 Consolidated Performance Forecasts 13 16 04 Topics 05 Appendix 19 Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOL

  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: Q1: Consolidated Financial Results Highlights

    FY2023 Q1 : Consolidated Financial Results Highlights Net Sales Operating Profit Recurring Profit Net Profit 49.9 billion yen 5.4 billion yen 4.9 billion yen 3.3 billion yen +12% YoY +168% YoY +84% YoY +84% YoY +5.4 bn yen YoY +3.4 bn yen YoY +2.2 bn yen YoY +1.5 bn yen YoY 1. In Q1, our key brands

  6. Slide 6: 1H / Full-Year: Performance Forecasts Highlights

    FY2023 1H / Full-Year : Performance Forecasts Highlights Net Sales Operating Profit Recurring Profit Net Profit First Half 90.0 billion yen 4.0 billion yen 3.4 billion yen 2.4 billion yen +10% YoY +1973% YoY +420% YoY +404% YoY +7.8 bn yen YoY +3.8 bn yen YoY +2.7 bn yen YoY +1.9 bn yen YoY Full Yea

  7. Slide 7: Trends of Operating Profit and Operating Profit Margin

    Trends of Operating Profit and Operating Profit Margin ◼ Operating profit for FY2023 is expected to reach 10 billion yen for the first time in 11 fiscal years since FY2012. (Billion yen) 5.3％ Operating Profit Operating Profit Margin 5.0% 4.3% 130 3.4% 11.2 3.0％ 3.0% 9.4 10.0 2.1% 80 2.0% 1.9% 1.7% 4

  8. Slide 8: Shareholder Returns

    Shareholder Returns ▍Dividends Policy The Company views the distribution of profits to shareholders as one of the management’s highest priority issues, and sets a dividend payout ratio target of 35% or more, ensuring stable and appropriate distribution of profits in conjunction with its performance.

  9. Slide 9: Promote Management that is Conscious of Cost of Capital and Stock Price

    Promote Management that is Conscious of Cost of Capital and Stock Price ▍Recognition of the current situation and future plans Recognizing that improving PBR and ROE is a key management issue, we will announce a comprehensive financial strategy together with a revised version of "ONWARD VISION 2030"

  10. Slide 10: FY2023 Q1 Consolidated Financial Results

    02 FY2023 Q1 Consolidated Financial Results Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 10 10

  11. Slide 11: Q1: Consolidated Financial Results

    FY2023 Q1 : Consolidated Financial Results ◼ Net sales increased to 49.9 billion yen, up 5.4 billion yen (12.0%) YoY. ◼ Operating profit increased to 5.4 billion yen, up 3.4 billion yen (+168.3%) YoY as a result of higher gross profit margin (+2.6pp) and a lower SG&A expense ratio (-3.7pp), and the

  12. Slide 12: Q1: Net Sales & Operating Profit by Segment

    FY2023 Q1 : Net Sales & Operating Profit by Segment ◼ In the domestic business, both the apparel and lifestyle segments increased sales YoY. Operating profit increased significantly by +115.4% in the apparel segment and by +68.8% in the lifestyle segment. ◼ In the overseas business, sales increased

  13. Slide 13: FY2023 First Half and Full Year Consolidated Performance Forecasts

    03 FY2023 First Half and Full Year Consolidated Performance Forecasts Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 13 13

  14. Slide 14: 1H / Full-Year: Consolidated Performance Forecast

    FY2023 1H / Full-Year : Consolidated Performance Forecast ◼ First-half net sales are expected to be 90 billion yen, up 7.8 billion yen (+9.5%) YoY. Gross profit margin is expected to increase by 2.2pp YoY, and gross profit is expected to increase by 6.2 billion yen (+14.0%). The SG&A expenses ratio

  15. Slide 15: 1H / Full-Year: Forecast of Net Sales & Operating Profit by Segment

    FY2023 1H / Full-Year : Forecast of Net Sales & Operating Profit by Segment ◼ In the domestic business, in the apparel segment for the full year, net sales are expected to increase by 9.1 billion yen (+7.1%) and operating profit by 3.9 billion yen (+78.0%). In the lifestyle segment for the full year

  16. Slide 16: Topics

    04 Topics Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 16 16

  17. Slide 17: Capital and Business Alliance with WEGO Co., Ltd.

    Capital and Business Alliance with WEGO Co., Ltd. - Strategic partnership for mutual use of the two companies’ platforms - ◼ Overview of WEGO ✓ Company Profile： WEGO is a fashion company that aims to create new value by combining fashion, culture, and lifestyle to add color to the town and the world

  18. Slide 18: Deepening of Capital and Business Alliance with SanMarino Co., Ltd.

    Deepening of Capital and Business Alliance with SanMarino Co., Ltd. Onward Holdings Deepens Capital and Business Alliance with Textile Trading Company SanMarino Co., Ltd. Acquires Additional Portion of Outstanding Shares - For Further Acceleration of Structural Reform in Areas of Planning and Produc

  19. Slide 19: Appendix

    05 Appendix Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 19 19

  20. Slide 20: Brand Business

    Brand Business Nijyusanku 【Onward Kashiyama】 GOTAIRIKU 【Onward Kashiyama】 Onward Kashiyama’s core brand, For the men’s suits brand Nijyusanku, continued its strong sales GOTAIRIKU, net sales were growth from the previous fiscal year due driven by an increase in the share to the evolution of “standar

  21. Slide 21: Brand Business

    Brand Business UNFILO / Steppi 【Onward Kashiyama】 UNFILO, which has created big hit products since its debut in 2021 and approximately doubled its net sales in FY2022, continued signif icant sales growth in Q1. Increased use of OMO services and the creation of hit products contributed to growth of n

  22. Slide 22: OMO Service "Click & Try"

    OMO Service “Click ＆ Try” ◼ The number of stores that introduced the “Click & Try” service increased by 70 stores from the end of the same period of the previous fiscal year to 360 stores, and the adoption rate increased to 51%. ◼ The number of reservations increased by 184% to 37,000 reservations Y

  23. Slide 23: Q1 Operating Profit Change Analysis (YoY)

    FY2023 Q1 Operating Profit Change Analysis (YoY) ▍Operating Profit Change Waterfall (Billion yen) ++0.5 ++0.4 ++0.8 ++0.2 ++0.7 +-1.1 5.4 ++1.8 Change due to SG&A expenses 2.0 Change due to gross profit 2022 Q1 Increase in Increase in Increase in Increase in Increase in Decrease in Increase in 2023

  24. Slide 24: Q1: Net Sales & Operating Profit by Company

    FY2023 Q1 : Net Sales & Operating Profit by Company Q1 (Million yen) FY2023 FY2022 Change % of Change 1 Onward Kashiyama+HD Net Sales 29,174 26,135 +3,039 +11.6% Operating Profit 3,696 1,752 +1,944 +111.0% 2 Onward Trading Net Sales 4,465 3,822 +643 +16.8% Operating Profit 727 461 +266 +57.7% 3 Isla

  25. Slide 25: Q1: Net Sales by Channel

    FY2023 Q1 : Net Sales by Channel ◼ Net sales at physical stores total (department stores, shopping centers and other) increased by 12% YoY. ◼ E-commerce sales increased by 8% YoY. The e-commerce ratio and the directly managed e- commerce ratio remained at a high level at 28% and 86%, respectively. D

  26. Slide 26: 1H / Full-Year: Consolidated Performance Forecasts (Compared to Initial Forecast)

    FY2023 1H / Full-Year : Consolidated Preformance Forecasts (Compared to Initial Forecast) ◼ Net sales in the first half are estimated to reach 90 billion yen, up 3.8 billion yen (+4.4%) from the initial forecast. Operating profit is forecast to be 4 billion yen, up 3 billion yen (+300.0%), while rec

  27. Slide 27: 1H / Full-Year: Forecast by Segment (Compared to Initial Forecast)

    FY2023 1H / Full-Year : Forecast of Net Sales & Operating Profit by Segment (Compared to Initial Forecast) ◼ In the domestic apparel segment for the full year, net sales are expected to increase by 2.8 billion yen (+4.5%) and operating profit by 2.1 billion yen (+178.1%) from the initial forecasts.

  28. Slide 28: 1H / Full-Year: Forecast of Net Sales & Operating Profit by Company

    FY2023 1H / Full-Year : Forecast of Net Sales & Operating Profit by Company ◼ In the domestic business for the full year, net sales are expected to increase by 12.1 billion yen (+7.3%) and operating profit by 4.5 billion yen (+57.6%) from the previous fiscal year. ◼ In the overseas business, net sal

  29. Slide 29: Q1: SG&A Expenses / Items that Affect Net Profit

    FY2023 Q1 : SG&A Expenses / Items that Affect Net Profit YoY YoY (Million yen) FY2023 Q1 FY2022 Q1 (Million yen) FY2023 Q1 FY2022 Q1 (% of Change) (% of Change) 8 Operating Profit 5,380 2,005 +168.3% 1 Presonnel 8,637 8,448 +2.2% 9 Non-Operating Profit 120 1,046 -88.5% 2 Rent 6,881 6,474 +6.3% 10 In

  30. Slide 30: Q1: Consolidated Balance Sheet

    FY2023 Q1 : Consolidated Balance Sheet (Billion yen) End-FY2023 Q1 End-FY2022 Change % of Change Reasins for change 1 Total Assets 164.3 159.1 +5.2 +3.3% 2 Current Assets 66.1 62.2 +3.9 +6.3% 3 Cash and Deposits 13.5 13.8 -0.3 - 2.2% Accounts 4 15.8 13.9 +1.9 +13.7% Expanded net sales Receivable-tra

  31. Slide 31: Q1: Results by Group

    FY2023 Q1 : Results by Group (Million yen) Q1 Results FY2023 FY2022 Change ％ of Change 1 Net Sales 29,174 26,135 +3,039 +11.6% Onward Kashiyama 2 Gross Profit 18,324 15,815 +2,509 +15.9% （% of Sales） (62.8%) (60.5%) (+2.3%) +HD 3 SG&A Expenses 14,628 14,063 +565 +4.0% （% of Sales） (50.1%) (53.8%) (-

  32. Slide 32: 1H / Full-Year: Performance Forecasts by Group

    FY2023 1H / Full-Year : Performance Forecasts by Group First Half Full-Year (Million yen) FY2023 FY2022 Change % of Change FY2023 FY2022 Change % of Change 1 Net Sales 51,419 48,740 +2,679 +5.5% 107,858 105,179 +2,679 +2.5% Onward Kashiyama 2 Gross Profit 31,121 28,812 +2,309 +8.0% 65,112 62,803 +2,

  33. Slide 33: The information in this presentation is not a solicitation to purchase or sell Onward Holdings stock

    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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