Onward Holdings Co., Ltd. · TSE:8016

Onward — Q3 FY2023 Earnings Presentation

35 slides from Onward's earnings presentation, Jan 11, 2024

  1. Slide 1: FY02/24 (FY2023) Q3 Results Presentation Material

    FY02/24 (FY2023) Q3 Results Presentation Material January 11, 2024 © 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 Contents Consolidated Financial Results and Performance Forecast 4 01 Highlights 02 FY2023 Q3 Consolidated Financial Results 8 03 FY2023 Full Year Consolidated Performance Forecast 11 04 Financial Situation 14 05 TOPICS 17 06 Appendix Copyright © ONWARD HOLDINGS CO., LTD. 22 © Copyright 200

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

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

  5. Slide 5: Q3: Consolidated Financial Results Highlights

    FY2023 Q3 : Consolidated Financial Results Highlights Net Sales Operating Profit Recurring Profit Net Profit Q3 51.0 bn yen 4.7 bn yen 4.6 bn yen 2.9 bn yen (Sep-Nov) +5.7% YoY +13.5％ YoY +14.8％ YoY +28.3％ YoY +2.7 bn yen YoY +0.6 bn yen YoY +0.6 bn yen YoY +0.6 bn yen YoY Cumulative Q3 141.4 bn yen

  6. Slide 6: Full-Year: Performance Forecasts Highlights

    FY2023 Full-Year : Performance Forecasts Highlights Net Sales Operating Profit Recurring Profit Net Profit 189.2 bn yen 11.0 bn yen 10.0 bn yen 5.9 bn yen +7.5％ YoY 2.1 x YoY 1.9 x YoY 1.9 x YoY +13.1 bn yen YoY +5.8 bn yen YoY +4.7 bn yen YoY +2.9 bn yen YoY ➢ The full-year forecasts have remained

  7. Slide 7: Shareholder Returns

    Shareholder Returns ▍Dividend Policy The Company regards the return of profits to shareholders as one of its most important management issues, and its dividend policy is to maintain the dividend payout ratio of at least 35% and to distribute profits in a stable, performance-linked, and appropriate m

  8. Slide 8: FY2023 Q3 Consolidated Financial Results

    02 FY2023 Q3 Consolidated Financial Results Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 88

  9. Slide 9: Q3: Consolidated Financial Results

    FY2023 Q3: Consolidated Financial Results ◼ Net sales were up 5.7% YoY in Q3 and up 8.4% YoY in the first nine months. ◼ Operating profit was up 13.5% YoY in Q3 and 2.2 times YoY in the first nine months. ◼ Net profit was up 28.3% YoY in Q3 and 2.1 times YoY in the first nine months. ◼ EBITDA was up

  10. Slide 10: Q3: Results by Segment

    FY2023 Q3: Results by Segment ◼ In the domestic business, both the apparel and lifestyle segments saw higher sales and profit. The domestic apparel business continued performing well into Q3 with stronger sales and a double-digit profit increase. ◼ The overseas business posted a sales increase both

  11. Slide 11: FY2023 Full Year Consolidated Performance Forecast

    03 FY2023 Full Year Consolidated Performance Forecast Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 11 11

  12. Slide 12: Full-Year: Consolidated Performance Forecast

    FY2023 Full-Year : Consolidated Performance Forecast ◼ The Company revised the full-year forecast for net profit upward to 5.9 billion yen due to lower tax expenses. ◼ The forecasts for net sales, operating profit and recurring profit remain unchanged from the latest forecast as performance in the f

  13. Slide 13: Full-Year: Performance Forecasts by Segment

    FY2023 Full-Year : Performance Forecasts by Segment ◼ In the domestic business, in the apparel segment, net sales are expected to increase by 10.2 billion yen (+7.8%) and operating profit by 4.8 billion yen (1.9 times) from the previous fiscal year. In the lifestyle segment, net sales are expected t

  14. Slide 14: Financial Situation

    04 Financial Situation Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 14 14

  15. Slide 15: Cumulative Q3: EBITDA, Net Assets, Shareholder's Equity Ratio, Current Ratio

    FY2023 Cumulative Q3 : EBITDA, Net Assets, Shareholder‘s Equity Ratio, Current Ratio ◼ EBITDA increased to 13.3 billion yen, up 5.0 billion yen YoY. ◼ Net assets decreased by 2.4 billion yen from the end of the previous fiscal year due to the decrease in minority interests. ◼ The shareholders’ equit

  16. Slide 16: Cumulative Q3: Cash Flows, Capital Expenditures, Depreciation and Amortization

    FY2023 Cumulative Q3 : Cash Flows, Capital Expenditures, Depreciation and Amortization ▍Cash Flows ## ◼ Cash flows provided by operating activities amounted 億円 ●● ## to 0.4 billion yen mainly due to 億円 億円 higher profit before income taxes and an increase in inventories. ◼ Cash flows used in investin

  17. Slide 17: TOPICS

    05 TOPICS Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 17 17

  18. Slide 18: Trends in Main Brand Businesses: Nijyusanku

    Trends in Main Brand Businesses Nijyusanku 【Onward Kashiyama】 • For Onward Kashiyama’s core brand “Nijyusanku,” sales promotion was stepped up by the campaign to celebrate the 30th anniversary of its brand debut. • Moreover, the Company launched the high-grade derivative brand ”estèta” afresh with t

  19. Slide 19: Trends in Main Brand Businesses: UNFILO

    Trends in Main Brand Businesses 【 オンワード樫山 UNFILO 【Onward 】 Kashiyama】 • Following the concept of “Move around. Functional beauty for everyone,” UNFILO, which debuted in 2021, created popular products such as Saiai jogging pants that employ functional materials. • The brand started as a D2C brand in

  20. Slide 20: Trends in Main Brand Businesses: PET PARADISE

    Trends in Main Brand Businesses PET PARADISE 【Creative Yoko】 • PET PARADISE, which was the main business of Creative Yoko, successfully advanced store- opening measures in which the brand had been actively engaged since the second half of FY2022. • Stepping up the strategy for consumption from inbou

  21. Slide 21: Trends in Main Brand Businesses: Chacott COSMETICS

    Trends in Main Brand Businesses Chacott COSMETICS 【 Chacott 】 • In 2021, the brand was given a broad facelift as “Chacott COSMETICS,” which consisted of items of an everyday-use version of the cosmetics that professional artists had loved for a long time as classic ballet stage makeup. • As raw mate

  22. Slide 22: Appendix

    06 Appendix Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 22 22

  23. Slide 23: OMO Service "Click & Try" / Multi-Brand Store ONWARD CROSSET / SELECT

    OMO Service “Click & Try” Multi-Brand Store “ONWARD CROSSET / SELECT” ◼ “Click & Try” Service ・ The number of stores offering the service increased to 388, up 58 from the end of the same period last year. ・ In the first nine months of FY2023, net sales at (existing) stores offering this service were

  24. Slide 24: Cumulative Q3: Net Sales by Channel

    FY2023 Cumulative Q3: Net Sales by Channel ◼ Net sales at physical stores total (department stores + shopping centers and others) increased by 7% 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 29% and 89%, respe

  25. Slide 25: Cumulative Q3: Net Sales Breakdown by Channel

    FY2023 Cumulative Q3 : Net Sales Breakdown by Channel ▍Total of Onward Group’s nine domestic companies (Onward Kashiyama, Island, Tiaclasse, Onward Personal Style, Chacott , Creative Yoko, Yamato, Intimates, KOKOBUY) FY2023 Cumulative Q3 Department E-Commerce Stores 29％ 33％ Shopping Centers and Othe

  26. Slide 26: Cumulative Q3: Operating Profit Change Analysis (YoY)

    FY2023 Cumulative Q3 : Operating Profit Change Analysis (YoY) (Billion yen) +1.3 +0.5 +1.4 +0.4 -2.1 -0.1 +4.0 9.7 Change due to SG&A expenses 4.3 Change due to gross profit FY2022 Increase in Increase in Increase in Increase in Increase in Decrease in Decrease in FY2023 cumulative Q3 gross profit g

  27. Slide 27: Trends of Operating Profit and Operating Profit Margin

    Trends of Operating Profit and Operating Profit Margin ◼ Operating profit in FY2023 is expected to exceed the 10 billion yen level for the first time in 11 years since FY2012. ◼ The operating profit margin in FY2023 is expected to be 5.8%, the highest since FY2012. (bn yen) 5.8％ Operating Profit Ope

  28. Slide 28: Q3: Results by Company

    FY2023 Q3 : Results by Company Cumulative Q3 Q3 （Million yen） FY2023 FY2022 Change % of Change FY2023 FY2022 Change % of Change 1 Onward Kashiyama+HD Net Sales 29,918 28,815 +1,103 +3.8% 81,484 74,870 +6,614 +8.8% Operating Profit 3,571 3,336 +235 +7.0% 6,781 3,668 +3,113 +84.9% 2 Onward Net Sales 4

  29. Slide 29: Full-Year: Performance Forecasts by Company

    FY2023 Full-Year : Performance Forecasts by Company Full-Year Forecast FY2022 Previous （Million yen） FY2023 Actual Change % of Change Forecast Change % of Change 1 Onward Kashiyama+HD Net Sales 108,721 101,109 +7,612 +7.5% 107,964 +757 +0.7% Operating Profit 8,180 4,524 +3,656 +80.8% 7,801 +379 +4.9

  30. Slide 30: Cumulative Q3: SG&A Expenses / Items that Affect Net Profit

    FY2023 Cumulative Q3 : SG&A Expenses / Items that Affect Net Profit FY2023 FY2022 YoY FY2023 FY2022 YoY （Million yen） Cumulative Q3 Cumulative Q3 (% of Change) （Million yen） Cumulative Q3 Cumulative Q3 (% of Change) 8 Operating Profit 9,700 4,315 +124.8% 1 Presonnel 26,633 26,334 +1.1% 9 Non-Operati

  31. Slide 31: Cumulative Q3: Consolidated Balance Sheet

    FY2023 Cumulative Q3 : Consolidated Balance Sheet (Billion yen) End-FY2023 Q3 End-FY2022 Change Reasins for change 1 Total Assets 172.8 159.1 +13.7 2 Current Assets 76.7 62.2 +14.5 3 Cash and Deposits 12.6 13.8 -1.2 Accounts 4 19.1 13.9 +5.2 Receivable-trade 5 Inventory 40.8 30.7 +10.1 Increase due

  32. Slide 32: Q3 / Cumulative Q3: Results by Groups

    FY2023 Q3 / Cumulative Q3: Results by Groups Q3 Results Cumulative Q3 Results （Million yen） FY2023 FY2022 Change % of Change FY2023 FY2022 Change % of Change 1 Net Sales 29,918 28,815 +1,103 +3.8% 81,484 74,870 +6,614 +8.8% Onward Kashiyama 2 Gross Profit 18,605 18,177 +428 +2.4% 49,850 45,335 +4,51

  33. Slide 33: Full-Year: Forecasts by Group

    FY2023 Full-Year : Forecasts by Group Full-Year Forecast （Million yen） FY2023 FY2022 Change % of Change 1 Net Sales 108,721 101,109 +7,612 +7.5% Onward Kashiyama 2 Gross Profit 65,584 60,068 +5,516 +9.2% （% of Net Sales） (60.3%) (59.4%) (+0.9%) + HD 3 SG&A Expenses 57,404 55,544 +1,860 +3.3% （% of N

  34. Slide 34: Promote Management that is Conscious of Cost of Capital and Stock Price

    Promote Management that is Conscious of Cost of Capital and Stock Price ■ Approach to financial policies and target financial indicators • Aim to realize returns (profits) in excess of the cost of capital for sustainable improvement of corporate value • Set targets such as for return on equity (ROE)

  35. Slide 35: 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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