Onward Holdings Co., Ltd. · TSE:8016

Onward — H1 FY2023 Earnings Presentation

40 slides from Onward's earnings presentation, Oct 5, 2023

  1. Slide 1: FY2023 1H Results Presentation, October 5, 2023

    October 5, 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 Contents Consolidated Financial Results and Performance Forecast 01 Highlights 4 02 FY2023 First Half Consolidated Financial Results 11 03 FY2023 Full Year Consolidated Performance Forecast 14 04 Financial Situation 17 05 Initiative for Human Capital Management 20 06 Initiative for Sustaina

  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: 1H: Consolidated Financial Results Highlights

    FY2023 1H : Consolidated Financial Results Highlights Net Sales Operating Profit Recurring Profit Net Profit 90.4 bn yen 5.0 bn yen 4.4 bn yen 2.9 bn yen +10.0％ YoY 26.0 x YoY 6.7 x YoY 6.0 x YoY +8.2 bn yen YoY +4.8 bn yen YoY +3.8 bn yen YoY +2.4 bn yen YoY ➢ In the first half of the year, as a re

  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 5.5 bn yen +7.5％ YoY 2.1 x YoY 1.9 x YoY 1.8 x YoY +13.1 bn yen YoY +5.8 bn yen YoY +4.7 bn yen YoY +2.4 bn yen YoY ➢ As the results in the first-half of th

  7. Slide 7: 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

  8. Slide 8: Net Sales Breakdown by Channel

    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 1H Department E-Commerce Stores 30％ 32％ Shopping Centers and Other 38％ Changes in Onward Kashiyama’s

  9. Slide 9: Shareholder Returns

    Shareholder Returns ▍Dividend 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.

  10. Slide 10: Promote Management 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 for return on equity (ROE) and ret

  11. Slide 11: FY2023 First Half Consolidated Financial Results

    02 FY2023 First Half Consolidated Financial Results Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 11 11

  12. Slide 12: 1H: Consolidated Financial Results

    FY2023 1H : Consolidated Financial Results ◼ Net sales increased to 90.4 billion yen (+10.0%) , up 8.2 billion yen YoY. ◼ Operating profit increased to 5.0 billion yen (26.0 times), up 4.8 billion YoY as a result of higher gross profit margin (+2.2pp) and a lower SG&A expense ratio (-3.2pp), and the

  13. Slide 13: 1H: Results by Segment

    FY2023 1H : Results by Segment ◼ In the domestic business, both the apparel and lifestyle segments increased sales. Operating profit increased significantly to 8.2 times in the apparel segment, and by 36% in the lifestyle segment. ◼ In the overseas business, sales increased by 16% YoY, and operating

  14. Slide 14: 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. 14 14

  15. Slide 15: Full-Year: Consolidated Performance Forecast

    FY2023 Full-Year : Consolidated Performance Forecast ◼ Full-year performance forecasts are a combination of the first-half financial results and the previous second-half forecasts (announced in July 2023). ◼ Net sales are expected to be 189.2 billion yen (+7.5%), up 13.1 billion yen, operating profi

  16. Slide 16: 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 9.4 billion yen (+7.2%) and operating profit by 4.4 billion yen (1.9 times) from the previous fiscal year. In the lifestyle segment, net sales are expected to

  17. Slide 17: Financial Situation

    04 Financial Situation Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 17 17

  18. Slide 18: 1H: EBITDA, Net Assets, Shareholder's Equity Ratio, Current Ratio

    FY2023 1H : EBITDA, Net Assets, Shareholder's Equity Ratio, Current Ratio ◼ EBITDA increased to 7.4 billion yen, up 4.6 billion yen YoY. ◼ Net assets decreased by 5.0 billion yen from the end of the previous fiscal year due to the decrease in minority interests. ◼ The shareholder's equity ratio was

  19. Slide 19: 1H: Cash Flows, Capital Expenditures, Depreciation and Amortization

    FY2023 1H : Cash Flows, Capital Expenditures, Depreciation and Amortization ▍Cash flows ## ●● ## ◼ Cash flows provided by operating activities amounted to億円1.1 billion yen mainly 億円 due to an 億円 increase in profit before income taxes and an increase in inventories. ◼ Cash flows used in investing act

  20. Slide 20: Initiative for Human Capital Management

    05 Initiative for Human Capital Management Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 20 20

  21. Slide 21: Initiative for Human Capital Management: Diversity

    Initiative for Human Capital Management ◼ Commitment to Diversity “Introduction of the Mentor System” to promote empowerment of female employees In order to nurture female senior management candidates, certain executive officers (mentors) assist female managers (mentees) in solving career developmen

  22. Slide 22: Initiative for Human Capital Management: Work Style Design

    Initiative for Human Capital Management ◼ Work Style Design Promotion of childcare leave by Work interval system male employees In September 2022, the Company The Company held Pre-Dad/Mom introduced the ”Work Interval System” Seminars and individual interviews to which ensures 11 hours between the f

  23. Slide 23: Initiative for Sustainable Management

    06 Initiative for Sustainable Management Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 23 23

  24. Slide 24: Initiative for Sustainable Management: Onward Green Campaign

    Initiative for Sustainable Management ◼ Expansion of Onward Green ◼ Launched “Upcycle Action” for Campaign collected clothing The Onward Green Campaign aims to The Company started Upcycle Action to create establish an apparel circulation system by new value by making use of collected clothing recycl

  25. Slide 25: Initiative for Sustainable Management: Made-to-Order and Recycled Materials

    Initiative for Sustainable Management ◼ Expansion of Made-to-Order ◼ Utilization of Recycled Materials Production For the core men’s brand “Gotairiku,” the The knit shoe brand “steppi” is produced by proportion of made-to-order suits in the using recycled materials from used plastic sales of suits i

  26. Slide 26: TOPICS

    07 TOPICS Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 26 26

  27. Slide 27: Commitment to Further Growth of NIJYUSANKU, Celebrating Its 30th Anniversary

    Commitment to Further Growth of NIJYUSANKU, Celebrating Its 30th Anniversary ◼ Strengthening sales promotion ◼ Launch of a new brand “estèta” NIJYUSANKU chose actress Anne as its "estèta," a new high-grade line debuted. brand ambassador to celebrate the 30th We produce this brand mainly in garment a

  28. Slide 28: Strengthening Corporate Business

    Strengthening Corporate Business On September 1, 2023, Onward Trading Co., Ltd. and Onward Creative Center Co., Ltd. merged to form a new company, Onward Corporate Design Co., Ltd., as a core business company responsible for corporate business. It combines the extensive know-how in the uniform busin

  29. Slide 29: Support of the Japan National Team in the Rugby World Cup France 2023

    Support of the Japan National Team in the Rugby World Cap France 2023 ◼ Onward Personal Style Co., Ltd. signed an official supporter agreement with the Japan Rugby Football Union to support the 2023 Japan National Rugby Team. ◼ Through the made-to-order brand “KASHIYAMA”, we provide original model s

  30. Slide 30: Appendix

    08 Appendix Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 30 30

  31. Slide 31: 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 introduced increased to 360, up 50 from the end of the same period last year. • In the first half of FY2023, net sales at (existing) stores providing this service were 13% higher than

  32. Slide 32: 1H: Net Sales by Channel

    FY2023 1H : Net Sales by Channel ◼ Net sales at physical stores total (department stores + shopping centers and others) increased by 11% 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 30% and 86%, respectively.

  33. Slide 33: Brand Business

    Brand Business Nijyusanku 【Onward Kashiyama】 UNFILO 【Onward Kashiyama】 Onward Kashiyama’s core brand It continued to expand due to the “Nijyusanku” continued its strong sales development of highly profitable and growth. It enhanced sales promotion unique products and the effects of celebrating the 3

  34. Slide 34: 1H: Operating Profit Change Analysis (YoY)

    FY2023 1H : Operating Profit Change Analysis (YoY) (Billion yen) Change due to gross profit +0.9 +0.5 +1.0 +0.4 +0.8 -2.0 50 5.0 +3.3 Change due to SG&A expenses 20 0.2 2 FY2022 1H Increase in Increase in Increase in Increase in Increase in Decrease in Increase in FY2023 1H r operating gross profit

  35. Slide 35: 1H: Results by Company

    FY2023 1H : Results by Company 1H Results Previous FY2023 FY2022 Change % of Change Forecasut Change % of Change 1 Onward Kashiyama+HD Net Sales 51,566 46,055 +5,511 +12.0% 51,419 +147 +0.3% Operating Profit 3,210 332 +2,878 +866.9% 2,401 +809 +33.7% 2 Onward Net Sales 7,353 6,865 +488 +7.1% 7,228 +

  36. Slide 36: Full-Year: Performance Forecasts by Company

    FY2023 Full-Year : Performance Forecasts by Company Full-Year Forecast FY2022 Previous FY2023 Change % of Change Forecasut Change % of Change Actual 1 Onward Kashiyama+HD Net Sales 107,964 101,109 +6,855 +6.8% 107,858 +106 +0.1% Operating Profit 7,801 4,524 +3,277 +72.4% 6,887 +914 +13.3% 2 Onward N

  37. Slide 37: 1H: SG&A Expenses / Items that Affect Net Profit

    FY2023 1H : SG&A Expenses / Items that Affect Net Profit YoY YoY FY2023 1H FY2022 1H FY2023 1H FY2022 1H (% of Change) (% of Change) 8 Operating Profit 5,022 193 +2502.1% 1 Presonnel 18,103 18,276 - 0.9% 9 Non-Operating Profit 317 1,116 - 71.6% 10 Interest income 150 119 2 Rent 12,201 11,563 +5.5% 1

  38. Slide 38: 1H: Consolidated Balance Sheet

    FY2023 1H : Consolidated Balance Sheet (Billion yen) End-FY2023 1H End-FY2022 Change Reasins for change 1 Total Assets 160.7 159.1 +1.6 2 Current Assets 64.1 62.2 +1.9 3 Cash and Deposits 12.3 13.8 -1.5 Accounts 4 12.3 13.9 -1.6 Receivable-trade 5 Inventory 34.9 30.7 +4.2 Increase due to active purc

  39. Slide 39: Onward Kashiyama: 1H Results / Full-Year Forecasts by Group

    FY2023 : 1H Results / Full-Year Forecasts by Group 1H Results Full-Year Forecast FY2023 FY2022 Change % of Change FY2023 FY2022 Change % of Change 1 Net Sales 51,566 46,055 +5,511 +12.0% 107,964 101,109 +6,855 +6.8% Onward Kashiyama 2 Gross Profit 31,245 27,158 +4,087 +15.0% 64,969 60,068 +4,901 +8.

  40. Slide 40: 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

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