Onward Holdings Co., Ltd. · TSE:8016
Onward — 1H FY02/23 Earnings Presentation
55 slides from Onward's earnings presentation, Oct 6, 2022
Slide 1: FY02/23 1H Results Presentation Material
FY02/23 1H Results Presentation Material October 6, 2022
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. 1
Slide 3: Contents
Contents 01 Financial Summary P. 3 1. FY02/23 1H Consolidated Results P. 3 2. FY02/23 Full-year Forecast P.10 02 Overview of Group Management P.13 P.13 1. Results of Global Business Reforms P.16 2. Apparel Business Strategy P.17 (1) Promote OMO Strategy (2) Expand D2C Brands P.19 (3) Promote Product
Slide 4: Financial Summary
01 Financial Summary 1. FY02/23 1H Consolidated Results 2. FY02/23 Full-year Forecast Copyright © ONWARD HOLDINGS CO., LTD. 3
Slide 5: 1H Highlights
FY02/23 1H Highlights Net Sales Operating Profit Recurring Profit Net Profit 82.2 billion yen 0.2 billion yen 0.7 billion yen 0.5 billion yen +1.4 billion yen YoY +3.5 billion yen YoY +3.5 billion yen YoY -7.0 billion yen YoY +5.2 billion yen vs. +2.0 billion yen vs. +2.4 billion yen vs. +1.7 billio
Slide 6: 1H: Consolidated Results (YoY)
FY02/23 1H: Consolidated Results (YoY) ◼ Net sales increased by 1.4 billion yen YoY to 82.2 billion yen. ◼ Operating profit/loss improved by 3.5 billion yen YoY, returning to the black for the first time in four fiscal years. FY02/22 Results FY02/23 Results YoY (Million yen) % of Sales 1H % of Sales
Slide 7: 1H: Changes in Consolidated Operating Profit
FY02/23 1H: Changes in Consolidated Operating Profit ◼ Improvement of operating profit/loss accelerated in 2Q versus 1Q. 1Q Change +2.6 billion yen +1 billion yen Copyright © ONWARD HOLDINGS CO., LTD. 2Q Change © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 6
Slide 8: 1H: Results by Segment (YoY)
FY02/23 1H: Results by Segment (YoY) ◼ 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. ◼ Net sales increased in the overseas lifestyle business, but turned down in the apparel busine
Slide 9: 1H: Net Sales & Operating Profit Increases/Decreases by Company
FY02/23 1H: Net Sales & Operating Profit Increases/Decreases by Company ◼ Net sales increased by 1.4 billion yen YoY, with a 4.7 billion yen increase at Onward Kashiyama and other factors absorbing the 4.5 billion yen decline in Europe after withdrawing from the Italian business. ◼ Operating profit/
Slide 10: 1H: Results Net Sales by Channel
FY02/23 1H: Results Net Sales by Channel ◼ Net sales at physical stores total (department stores, shopping centers and other) increased by 12% YoY (19% increase on a like-for-like store basis, excluding closed stores). ◼ E-commerce sales increased by 7% YoY. The e-commerce ratio and the directly man
Slide 11: Financial Summary
01 Financial Summary 1. FY02/23 1H Consolidated Results 2. FY02/23 Full-year Forecast Copyright © ONWARD HOLDINGS CO., LTD. 10
Slide 12: Full-Year Forecast Revision
FY02/23: Full-Year Forecast Revision ◼ Although solid business performance is expected as a result of various sales initiatives, many uncertainties remain, such as concerns about another resurgence in COVID-19 cases, foreign exchange rates, and raw material price trends. Therefore, the financial res
Slide 13: Full-Year Forecast (YoY)
FY02/23: Full-Year Forecast (YoY) ◼ Net sales are forecast to increase by 5.3 billion yen YoY. ◼ Operating profit is expected to improve by 5.2 billion yen YoY to 4.1 billion yen. ◼ Net profit is forecast to decline YoY due to a large gain from sales of non-current assets in FY02/22. ◼ EBITDA is for
Slide 14: Overview of Group Management
02 Overview of Group Management 1. Results of Global Business Reforms 2. Apparel Business Strategy (1)Promote OMO Strategy (2)Expand D2C Brands (3)Promote Product Strategy, Including Customized Products 3. Lifestyle Business Strategy Copyright © ONWARD HOLDINGS CO., LTD. 4. Promotion of Sustainable
Slide 15: Results of Global Business Reforms
Results of Global Business Reforms (October 2019–August 2022) ◼ Global business reforms had the effect of improving operating profit by approximately 21.0 billion yen. ▍Impact on net sales Global Business Reforms (Total for October 2019–August 2022) (Main content) Withdrawal from unprofitable -40.0
Slide 16: Consolidated Results During Global Business Reforms Period
Consolidated Results During Global Business Reforms Period (October 2019–August 2022) ◼ Net sales fell sharply in FY02/21 due to business reforms and the COVID-19 pandemic, but bottomed in FY02/22 and is on a recovery trend. ◼ Operating profit/loss also began a sharp recovery trend in FY02/22 after
Slide 17: Overview of Group Management
02 Overview of Group Management 1. Results of Global Business Reforms 2. Apparel Business Strategy (1)Promote OMO Strategy (2)Expand D2C Brands (3)Promote Product Strategy, Including Customized Products 3. Lifestyle Business Strategy LTD. CO., LTD. 4. Promotion of Sustainable Management HOLDINGS CO.
Slide 18: (1) Promote OMO Strategy
(1) Promote OMO Strategy ◼ Number of Onward Kashiyama stores implementing its “Click & Try” OMO service increased to 330 ◼ Net sales of existing stores offering the OMO service in 1H recovered to 95.9% of FY02/20 1H level, 21pp higher than stores that don’t offer the service (74.9%) ◼ Number of item
Slide 19: Click & Try service offers a new shopping format
(1) Promote OMO Strategy “Click & Try” service offers a new shopping format Overview of “Click & Try” Service An ordering service that allows customers, via the Onward Group’s online store ONWARD CROSSET, to have delivered almost all of Onward Kashiyama’s products, regardless of brand, to any store
Slide 20: (2) Expand D2C Brands
(2) Expand D2C Brands 【 Onward Kashiyama 】 ◼ Created long-selling hit products like “Saiai jogging pants” and “Georgette Jersey Jilet,” with net sales doubling YoY. ◼ Brisk sales of “steppi,” a range of high-performance shoes with knitted uppers. ◼ Full-scale launch of menswear and unisex range to p
Slide 21: (2) Expand D2C Brands
(2) Expand D2C Brands 【 Onward Kashiyama 】 ◼ Sales of sets made from select materials, and clothing items including cut and sew items and blouses have been brisk. ◼ The brand has recorded a sharp increase in the number of followers and attracted followers with high engagement thanks to influencer ma
Slide 22: (3) Promote Product Strategy, Including Customized Products
(3) Promote Product Strategy, Including Customized Products ◼ Developed advanced business model that connects stores with directly-managed smart factories online to deliver quality, made-to-order suits in a week at the earliest ▍Kashiyama Dalian Co., Ltd. ▍Kashiyama Saga Co., Ltd. ◼ Lean manufacturi
Slide 23: (3) Promote Product Strategy, Including Customized Products
(3) Promote Product Strategy, Including Customized Products KASHIYAMA 【 Onward Personal Style Co., Ltd. 】 ◼ New customers increased on sales growth of products for specific occasions, such as job hunting. ◼ For women’s apparel, the EASY line has been popular, and together with customized shoes, sale
Slide 24: (3) Promote Product Strategy Including Customized Products
(3) Promote Product Strategy Including Customized Products ICB 【Onward Kashiyama】 BEIGE, 【Onward Kashiyama】 ◼ New range of high-performance ◼ Brand marked its 10-year suits for active lifestyles drove anniversary; sales of jackets and sales blouses, the brand’s strong points, grew mainly at physical
Slide 25: Overview of Group Management
02 Overview of Group Management 1. Results of Global Business Reforms 2. Apparel Business Strategy (1)Promote OMO Strategy (2)Expand D2C Brands (3)Promote Product Strategy, Including Customized Products 3. Lifestyle Business Strategy LTD. CO., LTD. 4. Promotion of Sustainable Management HOLDINGS CO.
Slide 26: Chacott
Chacott ◼ Brisk sales of collaboration products and new products in mainstay ballet/fitness supplies. ◼ Chacott Balance offers a range of clothing for yoga, Pilates, and daily life. Sales (YoY) +6.1% ◼ Chacott Cosmetics, originally a stage make-up brand, in Copyright © ONWARD HOLDINGS CO., LTD. addi
Slide 27: Creative Yoko
Creative Yoko ◼ Sales of pet products and comfort goods continued to increase ◼ Launched Pet Paradise Cat range of products for cats ◼ Began selling MOLANG (a trending anime character) +15.2% Sales merchandise at Mother Garden online store (YoY) ◼ Opened pop-up store “Shirotan Funwari Store” at Ichi
Slide 28: Yamato
Yamato ◼ Strong sales growth continued, driven by robust bridal demand. ◼ In April 2022, launched new social gift service +8.9% Sales “dozo – Have fun with gifts” for sending gifts via (YoY) social media Copyright © ONWARD HOLDINGS CO., LTD. ◼ Pop-up shop opened for a limited period at CHOOSEBASE SH
Slide 29: KOKOBUY
KOKOBUY ◼ In addition to mainstay hair wax, sales of dry shampoo, a seasonal product, grew steadily due to high utilization. +22.9% Sales (YoY) ◼ Accelerated rollout of make-up products with the launch of “The Product Color Control”, made Copyright © ONWARD HOLDINGS CO., LTD. from 100% natural ingre
Slide 30: Overview of Group Management
02 Overview of Group Management 1. Results of Global Business Reforms 2. Apparel Business Strategy (1)Promote OMO Strategy (2)Expand D2C Brands (3)Promote Product Strategy, Including Customized Products 3. Lifestyle Business Strategy LTD. CO., LTD. 4. Promotion of Sustainable Management HOLDINGS CO.
Slide 31: Promote Sustainable Management
Promote Sustainable Management ◼ Based on the mission statement, “Enriching and adding color to people’s lives while caring for the planet,” the Onward Group will continue to practice sustainable management that pursues coexistence with the global environment as an important theme that forms the fou
Slide 32: 1H: TOPICS
FY02/23 1H: TOPICS ◼ Implemented initiatives for the realization of a low-carbon, recycling-based society. Expanded Onward Green Changed KASHIYAMA suit Campaign, which aims for a delivery packaging from recycling-based economy cardboard boxes to paper bags • Pack-runner compression packaging • In FY
Slide 33: 1H: TOPICS
FY02/23 1H: TOPICS ◼ Implemented initiatives for the realization of a low-carbon, recycling-based society. Reduce the number of “Shibaura Repair Workshop” samples made with remote opens for alteration service to measuring system minimize clothing waste • Introduced 3D garment-fitting simulation syst
Slide 34: Overview of Group Management
02 Overview of Group Management 1. Results of Global Business Reforms 2. Apparel Business Strategy (1) Promote OMO Strategy (2) Expand D2C Brands (3) Promote Product Strategy, Including Customized Products 3. Lifestyle Business Strategy LTD. CO., LTD. 4. Promotion of Sustainable Management HOLDINGS
Slide 35: Promotion of Work Style Design
Promotion of Work Style Design ◼ Promote “Work Style Design“, a reform project with the aim of increasing productivity by improving operational efficiency and achieving work-life balance. ▍Major Initiatives “Kaeru Kaigi“ Meetings Manager Training and Information- Sharing Sessions • Each team of co-w
Slide 36: Promotion of Work Style Design
Promotion of Work Style Design ◼ Promote "Work Style Design“, a reform project with the aim of increasing productivity by improving operational efficiency and achieving work-life balance. ▍Overtime Hours ▍Number of Paid Leave ▍% of Male Employees Days Taken Taking Paternity Leave Approx. -Day 6 Abou
Slide 37: Overview of Group Management
02 Overview of Group Management 1. Results of Global Business Reforms 2. Apparel Business Strategy (1) Promote OMO Strategy (2) Expand D2C Brands (3) Promote Product Strategy, Including Customized Products 3. Lifestyle Business Strategy LTD. CO., LTD. 4. Promotion of Sustainable Management HOLDINGS
Slide 38: Rebuilding of Digital Platforms
Rebuilding of Digital Platforms ◼ Implementing the "SMILE Project" to rebuild our digital platform aiming to achieve the five strategies of "ONWARD VISION 2030“. ▍Objectives of the "SMILE Project" ◼ “Become product-oriented and customer-centric" ◼ "Reform manufacturing, centered on PLM" ◼ “Enhance b
Slide 39: Financial Situation
03 Financial Situation Copyright © Copyright ONWARD HOLDINGS © ONWARD LTD. CO., LTD. HOLDINGS CO., © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 38 38
Slide 40: Balance Sheet
Balance Sheet ◼ Net assets increased to 81.6 billion yen, up 4.4 billion yen from the end of FY02/22. ◼ Shareholders’ equity ratio increased to 46.1％ billion yen, up 3.7 pp from the end of FY02/22. ◼ Current ratio increased to 115.5%, up 7.0 pp from the end of FY02/22, further improving management s
Slide 41: EBITDA/Cash Flows/Capital Expenditures
EBITDA/Cash Flows/Capital Expenditures ◼ EBITDA achieved a profit of 2.8 billion yen, 2.8 28 billion yen improved by 3.5 billion yen YoY. (Expected to expand to 9.1 billion yen for the full year) +3.5 EBITDA billion yen -700 m -7illion yen FY02/22 1H FY02/23 1H ◼ Cash flows from operating activities
Slide 42: DATA BOOK
Copyright 41 Copyright © HOLDINGS CO., ONWARD HOLDINGS © ONWARD LTD. CO., LTD. 41 © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 04 DATA BOOK
Slide 43: 1H: Consolidated Financial Results (Comparison to Initial Forecast)
FY02/23 1H: Consolidated Financial Results (Comparison to Initial Forecast) FY02/23 FY02/23 Comparison to Initial Forecast Initial Forecast Results % of Sales 1H % of Sales 1H % of Sales Change % of Change (Million yen) Change 1 Net Sales 77,000 - 82,166 - +5,166 +6.7% - 2 Gross Profit 40,500 52.6%
Slide 44: 1H: Net Sales & Operating Profit by Segment
FY02/23 1H: Net Sales & Operating Profit by Segment (Comparison to Initial Forecast) FY02/23 1H FY02/23 1H Change % of Initial Forecast (Million yen) Initial Forecast Results Net Sales 55,406 59,704 +4,298 +7.8% 1 Apparel Operating -1,728 484 +2,212 Profit Net Sales 18,783 19,155 +372 +2.0% 2 Lifest
Slide 45: 1H: Net Sales & Operating Profit by Company (YoY)
FY02/23 1H: Net Sales & Operating Profit by Company (YoY) FY02/22 FY02/23 (Million yen) Change YoY 1H 1H Onward Kashiyama + Net Sales 41,392 46,055 +4,663 +11.3% 1 HD Operating Profit -3,238 332 +3,570 Net Sales 7,578 6,865 -713 -9.4% 2 Onward Trading Operating Profit 1,067 523 -544 -51.0% Net Sales
Slide 46: 1H: Net Sales & Operating Profit by Company (vs Initial Forecast)
FY02/23 1H: Net Sales & Operating Profit by Company (Comparison to Initial Forecast) FY02/23 1H FY02/23 1H % of Initial Change (Million yen) Initial Forecast Results Forecast Net Sales 41,300 46,055 +4,755 +11.5% 1 Onward Kashiyama + HD Operating Profit -1,955 332 +2,287 Net Sales 7,190 6,865 -325 -
Slide 47: Full Year: Outlook by Segment (Comparison to Initial Forecast)
FY02/23 Full Year: Outlook by Segment (Comparison to Initial Forecast) FY02/23 FY02/23 Change (B-A) Initial Forecast Revised Forecast (Million yen) (announced in Apr-2022) (A) (announced in Sep-2022) (B) Net Sales 121,045 128,070 +7,025 1 Apparel Operating Profit 1,072 3,614 +2,542 Net Sales 38,583
Slide 48: Full Year: Outlook by Segment (YoY)
FY02/23 Full Year: Outlook by Segment (YoY) FY02/22 FY02/23 Change % of Change (B-A) (B/A) Revised Forecast (Million yen) Results (A) (announced in Sep-2022) (B) Net Sales 120,516 128,070 +7,554 +6.3％ 1 Apparel Operating Profit -1,254 3,614 +4,868 Net Sales 37,905 39,068 +1,163 +3.1％ 2 Lifestyle Ope
Slide 49: Full Year: Outlook by Company (Comparison to Initial Forecast)
FY02/23 Full Year: Outlook by Company (Comparison to Initial Forecast) FY02/23 FY02/23 Change Initial Forecast Revised Forecast (B-A) (Million yen) (announced in Apr-2022) (A) (announced in Sep-2022) (B) Net Sales 91,406 98,914 +7,508 1 Onward Kashiyama + HD Operating Profit 79 2,643 +2,564 Net Sale
Slide 50: Full Year: Outlook by Company (YoY)
FY02/23 Full Year: Outlook by Company (YoY) FY02/22 FY02/23 Change % of Change (B-A) (B/A) Results (A) Revised Forecast (Million yen) (announced in Sep-2022) (B) Onward Kashiyama + Net Sales 91,395 98,914 +7,519 +8.2％ 1 HD Operating Profit -1,857 2,643 +4,500 Net Sales 14,760 14,625 -135 -0.9％ 2 Onw
Slide 51: End-1H FY02/23: Balance Sheet
End-1H FY02/23: Balance Sheet FY02/22 FY02/23 Change Reasons for change (Billion yen) End End-1H 1 Total Assets 157.7 154.5 -3.2 2 Current Assets 60.5 58.0 -2.5 Cash and 3 15.2 14.7 -0.5 Deposits Accounts 4 14.2 11.3 -2.9 Seasonal factors Receivable-trade 5 Inventory 26.8 27.5 +0.7 6 Non-current Ass
Slide 52: 1H: Cash Flows/Capital Expenditures
FY02/23 1H: Cash Flows/Capital Expenditures ▍Consolidated Cash Flows FY02/22 1H FY02/23 1H Change (Million yen) 1 Cash flows from operating activities 962 1,399 +437 2 Cash flows from investing activities 20,022 5,935 -14,087 3 Cash flows from financing activities -23,966 -8,332 +15,634 4 Cash and c
Slide 53: 1H: Breakdown of SG&A Expenses, Non-Operating and Extraordinary Profit/Loss
FY02/23 1H: Breakdown of SG&A Expenses, Non-Operating Profit/Loss and Extraordinary Profit/Loss (Consolidated) FY02/22 FY02/23 YoY FY02/22 FY02/23 YoY Results Results (% of Change) Results Results (% of Change) (Million yen) 1H 1H 1H (Million yen) 1H 1H 1H 10 Non-Operating Profit 1,244 1,116 -10.3%
Slide 54: 1H: Results by Group
FY02/23 1H: Results by Group FY02/22 Results FY02/23 YoY (% of Change) (Million yen) 1Q 2Q 1H 1Q 2Q 1H 1Q 2Q 1H 1 Net Sales 22,704 18,688 41,392 26,135 19,920 46,055 15.1% 6.6% 11.3% Onward Kashiyama 2 Gross Profit 13,244 9,611 22,855 15,815 11,343 27,158 19.4% 18.0% 18.8% (% of Sales) (58.3%) (51.4
Slide 55: 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