Slide 1: Financial results explanation and medium-term five-year management plan
Financial results explanation and medium-term five-year management plan (FY22.3 to FY26.3) ～Redefine business areas and expand investment in growth areas～ GOLDWIN INC. （8111） May 14, 2021 Copyright © GOLDWIN INC. All Rights.
Slide 2: Table of Contents
Table of Contents Ⅰ. Financial Results for the Fiscal Year Ending March 2021 P. 2 ～ P. 10 Ⅱ. Review of the previous medium-term management plan P. 11 ～ P. 15 Ⅲ. PLAY EARTH 2030 P. 16 ～ P. 25 Ⅳ. Overview of the new medium-term management plan P. 26 ～ P. 32 Ⅴ. Forecast for the fiscal year ending March
Slide 3: I. Financial results for the fiscal year ending March 2021
I. Financial results for the fiscal year ending March 2021 Real-demand business model demonstrates its true value in the corona crisis
Slide 4: Summary of financial results for the fiscal year ending March 2021
Summary of financial results for the fiscal year ending March 2021 Overcame almost all store closures and achieved the highest performance in the first quarter after 20.3 period in terms of both sales and profits Financial results for the fiscal year ending March 2021 (Million yen) Net sales Gross p
Slide 5: Performance trends by brand business
Performance trends by brand business Outdoor-related adapts to new lifestyles caused by corona crisis and achieves record high performance. Sales by brand business (Million yen) Outdoor Athletic Winter Other Result 78,115 7,814 1,928 2,622 Year-on-year 100.2% 54.8% 72.9% 85.6% Sales composition 86.3
Slide 6: Quarterly sales trends by brand business
Quarterly sales trends by brand business Outdoors to full-scale recovery. As for athletics, CANTERBURY's rugby World Cup has come to an end, and the recovery trend （ Million Yen ） Outdoor 4Q (3 months) 100.7% compared to the previous term Athletic 4Q (3 months) 76.9% compared to the previous quarter
Slide 7: Graph of factors for increase / decrease in operating income
Graph of factors for increase / decrease in operating income Significant increase in profit compared to the initial forecast. Self-managed stores and wholesale sales are also firm Initial outlook for the term 21.3 period (May 14, 2020) 21.3期 実績（2021年5月14日） （Million Yen ） （ Million Yen ） ▲1,608 142 3
Slide 8: Changes in major KPIs
Changes in major KPIs The presence of EC sales has strengthened, increasing 28% year-on-year. Established a system to sell out firmly even in the corona crisis. Build a well-balanced sales system through two channels, EC sales established as a new sales channel in addition to directly managed stores
Slide 9: Balance Sheet for the Fiscal Year Ending March 2021
Balance Sheet for the Fiscal Year Ending March 2021 Build a financial structure that can withstand unforeseen circumstances Consolidated balance sheet (Million yen) Current assets Current Liabilities Fixed asset Fixed debt 32,285 Net Aeest 30,964 51,168 31,544 45,217 39,972 6,173 4,467 6,390 46,852
Slide 10: Resilience in Corona crisis
Resilience in Corona crisis It is only with the strength of the business model that we have cultivated so far that we have shown strong resilience in the Corona crisis. Market tailwind Cultivating new customers Deep plowing of existing customers Outdoor demand Stay-home demand Replacement demand Dis
Slide 11: Summary of financial results for the fiscal year ending March 2021
Summary of financial results for the fiscal year ending March 2021 The recovery of the outdoor-related business became clear, and sales recovered to over 90% from the previous year. ◼ As an activity that avoids crowded places, sales of outdoor-related products increased significantly, and sales of t
Slide 12: II. Review of the previous medium-term management plan
II. Review of the previous medium-term management plan (Fiscal year ending March 2017 to the fiscal year ending March 2021) The shift to a highly profitable structure is the result of tireless management efforts over the past 20 years.
Slide 13: Review of the previous medium-term management plan
Review of the previous medium-term management plan (Fiscal year ending March 2017 to the fiscal year ending March 2021) A strong management foundation acquired through the actual demand-type business model revealed by the new coronavirus. Sales and operating income margin ROE （Million Yen ） Net sale
Slide 14: Looking back on priority issues
Looking back on priority issues While THE NORTH FACE is making a breakthrough, the challenge is to develop the next brand such as original and athletic. Last medium-term management plan Evaluation Strengthening original brand business and overseas Unachieved Achieved rebranding of original brand bus
Slide 15: Major KPI transitions over 20 years due to business model conversion
(Reference) Major KPI transitions over 20 years due to business model conversion The transformation of the business model that we have been working on for 20 years has resulted in a highly profitable company in the last 5 periods. The actual demand type business model demonstrates its true Simultane
Slide 16: Financial governance
KPI setting from the field perspective and financial governance by top of management Establishing a management base and thorough decision-making to support the transformation of business models Strengthen financial base BS improvement PL improvement Improvement of FCF Source of growth Improved Reduc
Slide 17: Ⅲ. PLAY EARTH 2030
Ⅲ. PLAY EARTH 2030 Aiming for both sustainability
Slide 18: Long-term vision "PLAY EARTH 2030"
Long-term vision "PLAY EARTH 2030" Face two sustainability issues by solving climate change issues and rebuilding sustainable businesses Sustainability in business Sustainability in the environment Strengthening Rebuilding a sustainable Active shift to materials Carbon neutral at all collaboration w
Slide 19: Cross-border competition in the apparel industry
Cross-border competition in the apparel industry Performance establishes a position in the lifestyle market beyond the realm of the sports market 1990s 2000ｓ 2010s Fashion Fashion Market Fashion Market Market Lifestyle Market Fitness Outdoors Athletic Athletic Outdoors Fitness パフォーマンス パフォーマンス Winter
Slide 20: Image photo of new business division
Image photo of new business division Performance Lifestyle Fashion Copyright © GOLDWIN INC. All Rights. 19
Slide 21: List of major brands that fall under the new business category
List of major brands that fall under the new business category THE NORTH FACE originates from sports and spreads to the lifestyle and fashion markets Performance Lifestyle Fashion Marine Outdoors Rugby Lifestyle Winter, Outdoor, Athletic Lifestyle FY21.3 FY21.3期 21.3期 Sales: 29.4 billion yen Sales:
Slide 22: Growth strategy by CORE & MORE
Growth strategy by CORE & MORE Pursue performance that will be CORE, and expand it to lifestyle that will be MORE Development of new technology Pursuit of performance and new materials ⚫ New function development at Tech Lab ⚫ Open innovation ⚫ Challenge to new performance ⚫ New materials, processing
Slide 23: PLAY EARTH PARK
PLAY EARTH PARK Copyright © GOLDWIN INC. All Rights. 22
Slide 24: Three pillars of environmental improvement activities with an eye on 2030
Three pillars of environmental improvement activities with an eye on 2030 Specific measures for environmental improvement with three materialities Promotion of green design ⇒ 90% or more of products using materials that reduce environmental load ◼ Expand "Brewed Protein" development ◼ Promotion of c
Slide 25: Sustainability Transformation (SX) Initiatives
Sustainability Transformation (SX) Initiatives Promote initiatives for a recycling-oriented society and climate change, aiming for business operations that accompany improvement of the global environment 2025 2030 2050 target target target Environmental strategy Promote initiatives with suppliers an
Slide 26: SX practice journey with Spiber and Brewed Protein
SX practice journey with spiber and Brew Protein In 2030, 10% of newly developed products will be products using Brew Protein Large-scale deployment Price competitiveness Diversification with chemical fibers stage STEP3 Building a supply Mass production chain stage Material supply capacity as an "in
Slide 27: Ⅳ. Outline of the new medium-term management plan
Ⅳ. Outline of the new medium-term management plan (from the fiscal year ending March 2022 to the fiscal year ending March 2026) Build a solid financial base to balance investment in growth areas and resilience
Slide 28: Numerical targets for the new medium-term management plan
Numerical targets for the new medium-term management plan Aiming to achieve both medium-term financial goals and long-term non-financial goals （Million Yen） FY2021.3 FY2026.3 FY2031.3 Item （Results） （Outlook） （Outlook） Net sales 90,479 125,000 - Operating income 14,838 21,000 - Financial Ordinary in
Slide 29: Summary of outlook for the final year of the medium-term management plan
Summary of outlook for the final year of the medium-term management plan (fiscal year ending March 2026) Five periods to establish a strong position in the lifestyle market with great room for growth Sales by business category (100 million yen) Growth image in 5 periods Performance Lifestyle Fashion
Slide 30: Market outlook and basic policy of medium-term management plan
Market outlook and basic policy of medium-term management plan Increase both capital productivity and sustainability in the “apparel market” that evolves into a growth market Redefining the "apparel market" Conversion to innovation materials Correspondence Correspondence to digitalization Changes in
Slide 31: Analysis of factors for increase / decrease in operating income
Analysis of factors for increase / decrease in operating income Balance investment in growth areas with increased sales and efficiency （Million Yen ） 50,000 40,000 Wholesale 6,800 Cost Self-managed store SG & A 30,000 ▲3,000 Other 10,200 ▲15,000 EC sales ▲2,838 10,000 20,000 10,000 5期間で、合計62億円の増加 21
Slide 32: Linking factors of increase / decrease in operating income with each measure (KPI)
Linking factors of increase / decrease in operating income with each measure (KPI) Improve the high ROE management structure by thoroughly improving operational efficiency at the company-wide level Source of improvement KPI Policy Improvement of self- Self-managed sales Aim for a self-managed sales
Slide 33: Cash allocation
Cash allocation Generate operating cash flow of 70-80 billion yen during the five periods of the medium-term management plan and invest in growth areas Research and development of new 15～20 Creation of products billion yen operating cash flow Efforts to reduce environmental 5～10 impact billion yen G
Slide 34: Ⅴ. Forecast for the fiscal year ending March 2022
Ⅴ. Forecast for the fiscal year ending March 2022 The first year of the medium-term management plan. Efforts to improve infrastructure for sustainable growth
Slide 35: Summary of full-year financial results forecast for the fiscal year ending March 2022
Summary of full-year financial results forecast for the fiscal year ending March 2022 Sales of 100 billion yen for the first time since its establishment. Aiming for an operating income margin of 14% while continuing to invest in growth Forecast of financial results for the fiscal year ending March
Slide 36: Graph of factors for increase / decrease in operating income
Graph of factors for increase / decrease in operating income It is expected that the increase in SG & A expenses will be covered by the actual demand business model through directly managed stores, wholesale, and EC sales. Operating income for the fiscal year ending March 2022 First outlook (May 14,
Slide 37: Changes in shareholder returns and dividend payout ratio
Changes in shareholder returns and dividend payout ratio "Dividends will increase for 10 consecutive terms in 21.3. The year-end dividend of 55 yen includes a dividend of 10 yen to commemorate the 70th anniversary of the company's founding.For the 22.3 fiscal year, the interim dividend will be 20 ye
Slide 38: Summary
Summary Ripple of CORE & MORE strategy that will be the success factor of THE NORTH FACE As the sports and fashion markets become seamless, the CORE & MORE strategy established by THE NORTH FACE will be spread to other brands. 2030 Ambidextrous management for environmental improvement and sustainabl
Slide 39: VI. Supplementary material
VI. Supplementary material
Slide 40: Providing clothing for "Vendée Globe"
HH Kojiro Shiraishi Providing clothing for "Vendée Globe" Based on feedback from Mr. Shiraishi, we will develop sailing wear that can withstand harsh environments. Participated in the round-the-world yacht race Supporting Kojiro Shiraishi's sailing wear "Vendée Globe 2020-2021" HELLY HANSEN supporte
Slide 41: Providing clothing to MXP astronaut Akihiko Hoshide
Providing clothing to MXP astronaut Akihiko Hoshide Developed "Maxi Fresh Plus", a material that exerts a high deodorant effect in collaboration with JAXA and others. Akihiko Hoshide, the second Japanese captain of the MXP's deodorant function for astronauts who cannot bathe or ISS wash contributes
Slide 42: GREEN CYCLE 2020 collection results
GREEN CYCLE 2020 collection results Reduced the amount of carbon dioxide (28,994.9 kilograms) absorbed by 2,071 cedar trees in one year (Note 1) THE NORTH FACE 3 (march) Harajuku * Partner is BRING (JEPLAN, INC.) THE NORTH FACE Mountain Harajuku * Partner is BRING (JEPLAN, INC.) The "GREEN CYCLE" in
Slide 43: GOLDWIN WEB STORE online customer service started
GOLDWIN WEB STORE online customer service started Utilize the strength of customer service at directly managed stores along with system renewal toward an EC sales ratio of 30% Realizing online customer service that leverages the Introduced a mechanism to increase contact points strengths of directly
Slide 44: (Reference) Change diagram to new business category
(Reference) Change diagram to new business category スポーツに基づく事業区分から使用用途に基づく事業区分に変更 Outdoor Athletic Winter Other Original brand Previous business Owned division brand (～ 21.3 period) Licensed brand Performance Lifestyle Fashion Horizontal deployment of TNF Future Marine Outdoors business Rugby Lifest
Slide 45: Quarterly performance trends for the last 5 periods
Quarterly performance trends for the last 5 periods Achieved record highs in Q3(the 3rd quater), when both sales and profits are large Sales (Quarterly) Operating income (quarterly) （Million Yen） （ Million Yen ） 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 100,000 20,000 18,000 22,055 1,283 16,000 80,000 21,253 1,261 14
Slide 46: Changes in self-managed sales ratio and directly managed stores
Changes in self-managed sales ratio and directly managed stores Wholesale is doing well as well as self-managed sales floor, maintaining a balance between self- managed sales and wholesale Changes in the self-managed sales ratio and the number of directly managed stores （Store） Number of directly ma
Slide 47: Changes in sales loss rate
Changes in sales loss rate Sales loss rate continues to be in the single digit range throughout the period due to the penetration of actual demand business Changes in quarterly sales loss rate 16% 7.9% 5.6% 3.1% 2.4% 1.8% 14% 12% 10% 8% 6% 4% 2% 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 48: Transition of inventories balance from the previous quarter
Transition of inventories balance from the previous quarter 102.6% compared to the same period of the previous year, decreased by 1.5 billion yen from the end of December 2020, promoting digestion while maintaining brand value. Quarterly inventory balance trends （Million Yen） Inventory Year-on-year
Slide 49: (Reference) Quarterly performance trends
(Reference) Quarterly performance trends Full-year 1Q Results 2Q Results 3Q Results 4Q Results Results FY20.3 FY21.3 Cumulative FY20.3 FY21.3 Cumulative FY20.3 FY21.3 Cumulative FY20.3 FY21.3 Cumulative FY20.3 FY21.3 Net sales 18,074 12,200 12,200 23,094 19,358 31,558 34,675 37,668 69,226 22,056 21,
Slide 50: Corporate data
Corporate data Company name GOLDWIN INC. Tokyo Head Office: 150-8517, Japan 2-20-6 Shoto, Shibuya-ku, Tokyo 03-3481-7201 (Representative) Location Toyama Head Office: Kiyozawa 210, Oyabe-shi, Toyama 932-0112, Japan 0766-61-4800 (Representative) Establishment December 22, 1951 Capital stock ¥7,079 mi