Onward Holdings Co., Ltd. · TSE:8016

Onward — FY2022 Earnings Presentation

42 slides from Onward's earnings presentation, Apr 6, 2023

  1. Slide 1: FY2022 Results Presentation Material

    FY2022 (March 2022 – February 2023) Results Presentation Material April 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. 12

  3. Slide 3: Contents

    Contents 01 Consolidated Financial Results and Performance Forecasts Highlights P. 3 02 FY2022 Consolidated Financial Results P. 7 03 FY2023 Consolidated Performance Forecasts P.12 04 Topics P.18 05 Sustainable Management P.25 06 Work Style Design Project P.27 07 Financial Situation P.29 Copyright ©

  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. 34

  5. Slide 5: FY2022 Consolidated Financial Results Highlights

    FY2022 Consolidated Financial Results Highlights Net Sales Operating Profit Recurring Profit Net Profit 176.1 billion yen 5 . 2 billion yen 5 . 3 billion yen 3 . 1 billion yen +7.6 billion yen YoY +6.3 billion yen YoY +4.8 billion yen YoY -5.5 billion yen YoY ◼ Consolidated net sales for FY2022 incr

  6. Slide 6: FY2023 Performance Forecasts Highlights

    FY2023 Performance Forecasts Highlights Net Sales Operating Profit Recurring Profit Net Profit 185.0 billion yen 7.0 billion yen 6.3 billion yen 4.0 billion yen +8.9 billion yen YoY +1.8 billion yen YoY +1.0 billion yen YoY +0.9 billion yen YoY ◼ For FY2023, we expect to achieve consolidated net sal

  7. Slide 7: Operating Profit Trend (Last Fiscal Years)

    Operating Profit Trend （Last 10 Fiscal Years） ◼ Operating profit for FY2023 is expected to be the highest in the last 10 years including FY2023 since FY2014. （Billion yen） 7.0 5.73 5.17 5.21 45億円 5.17 5.21 4.20 4.46 3.78 - 1.08 Copyright © ONWARD HOLDINGS CO., LTD. - 3.06 - 20.17 FY2014 FY2015 FY201

  8. Slide 8: FY2022 Consolidated Financial Results

    02 FY2022 Consolidated Financial Results Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 78

  9. Slide 9: FY2022 Consolidated Financial Results

    FY2022 Consolidated Financial Results ◼ Net sales increased to 176.1 billion yen, up 7.6 billion yen from the previous fiscal year. ◼ Operating profit was a positive 5.2 billion yen, up 6.3 billion yen from the previous fiscal year. ◼ EBITDA.reached10.4 billion yen, up 6.5 billion yen from the previ

  10. Slide 10: FY2022 Net Sales & Operating Profit by Segment

    FY2022 Net Sales & Operating Profit by Segment ◼ The domestic apparel business posted higher sales, and operating profit entered the black. The lifestyle business recorded growth in net sales and operating profit. ◼ For overseas businesses, though net sales decreased due to the withdrawal from the I

  11. Slide 11: FY2022 Net Sales & Operating Profit by Company

    FY2022 Net Sales & Operating Profit by Company ◼ Net sales increased by 7.6 billion yen YoY, contributed by a 9.7 billion yen increase at Onward Kashiyama and other factors. ◼ Operating profit/loss returned to the black due to factors such as 6.4 billion yen in operating profit/loss improvement at O

  12. Slide 12: FY2022 Net Sales by Channel

    FY2022 Net Sales by Channel ◼ Net sales at physical stores total (department stores, shopping centers and other) increased by 8.4% YoY. ◼ E-commerce sales increased by 9.5% YoY. The e-commerce ratio and the directly managed e- commerce ratio remained at a high level at 30% and 85.9%, respectively. D

  13. Slide 13: FY2023 Consolidated Performance Forecast

    03 FY2023 Consolidated Performance Forecast Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 12 13

  14. Slide 14: FY2023 Consolidated Performance Forecasts

    FY2023 Consolidated Performance Forecasts ◼ Gross profit margin is expected to improve by 0.5 pp from FY2022 to 55.4%. ◼ SG&A expense ratio is forecast to lower 0.4 pp from FY2022 to 51.6%. ◼ EBITDA is estimated to increase 1.7 billion yen from FY2022 to 12.1 billion yen. FY2022 FY2023 YoY Change in

  15. Slide 15: FY2023 Forecast of Net Sales and Operating Profit by Segment

    FY2023 Forecast of Net Sales and Operating Profit by Segment ◼ For domestic business, the apparel business is expected to increase net sales by 4.9% and operating profit by 36.1%. Lifestyle business is forecast to expand net sales by 7.0% and operating profit by 8.3%. ◼ Overseas business is estimate

  16. Slide 16: FY2023 Forecast of Net Sales and Operating Profit by Company

    FY2023 Forecast of Net Sales and Operating Profit by Company ◼ Although overseas businesses as a whole will remain in the red, the European business is expected to return to the black as a result of the JOSEPH Group's turnaround. YoY FY2022 FY2023 (Million yen) Change % of Change Net Sales 101,109 1

  17. Slide 17: Shareholder Returns

    Shareholder Returns ◼ In line with the Company’s policy of strengthening shareholder returns, the annual dividend per share is expected to be 14 yen, an increase of 2 yen from the previous fiscal year. ▍Dividends Policy The Company views the appropriate distribution of profits to shareholders as a k

  18. Slide 18: Investments in Personnel

    Investments in Personnel In light of the ever-increasing importance of human resources as a management resource, in FY02/23, we will improve salaries and establish a new shopmeister system . ▍Salary Improvements Salary improvements for FY2023 are planned to be a 6.7% increase from the previous year.

  19. Slide 19: Topics

    04 Topics 1. OMO Strategy 2. Apparel Business 3. Lifestyle Business Copyright © ONWARD HOLDINGS CO., LTD. . © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 18 19

  20. Slide 20: OMO Strategy

    １．OMO Strategy ◼ Number of Onward Kashiyama stores implementing its “Click & Try” OMO service increased to 340. ◼ Number of items reserved for “Click & Try” expanded from 55,000 in 1H to 116,000 in 2H, reaching 171,000 in FY2022. ◼ Net sales level of existing stores offering the OMO service recovere

  21. Slide 21: Apparel Business: Key Brands Strategy

    ２．Apparel Business : Key Brands Strategy Nijyusanku 【Onward Kashiyama】 ◼ A large increase in sales of Nijyusanku, Onward Kashiyama’s biggest brand, led the recovery of the brand business. ◼ Expanded product lineup to meet demand of those who started working at offices or going out resulted in an inc

  22. Slide 22: Apparel Business: D2C Brands Strategy

    ２．Apparel Business : D2C Brands Strategy UNFILO 【Onward Kashiyama】 uncrave 【Onward Kashiyama】 ◼ Sales increased significantly due to the launch of long- ◼ As for “uncrave,” a D2C brand that is mainly sold at selling hit (Saiai jogging pants, Georgette Jersey gilet, the E-commerce market and has expa

  23. Slide 23: Apparel Business: Customized Products Strategy

    ２．Apparel Business : Customized Products Strategy KASHIYAMA 【Onward Personal Style 】 ◼ Net sales of directly managed stores increased 17% from FY2021. Along with directly managed stores, the operation of FC stores has also been accelerated. ◼ Sales of formal wears released in 2H are strong. The line

  24. Slide 24: Lifestyle Business: Chacott

    ３．Lifestyle Business Chacott ◼ Sales of mainstay ballet, fitness and “Chacott COSMETICS” products returned to the FY2019 level. ◼ Sales of “Chacott BALANCE,” a balance wear that straightens human body to the core both physically and mentally, rose sharply by 38% from FY2019. ◼ In March 2023, the Com

  25. Slide 25: Lifestyle Business: Creative Yoko

    ３．Lifestyle Business Creative Yoko ◼ Net sales of the pet business and the Sirotan business increased 14% and 8% year on year, respectively, contributed by the measures of opening physical stores. ◼ In January 2023, “Sirotan Friends Park,” a specialty shop of an original character Sirotan, opened at

  26. Slide 26: Sustainable Management

    05 Sustainable Management Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 25 26

  27. Slide 27: Sustainable Management: Green Onward Project

    Sustainable Management Onward Holdings / Onward Kashiyama Launched the “Green Onward” Project to Promote Evolved Sustainable Management Overview of “Green Onward” Project • Onward Green Campaign has focused on reusing collected clothing in producing blankets, work gloves and solid fuels. • The next

  28. Slide 28: Work Style Design Project

    06 Work Style Design Project Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 27 28

  29. Slide 29: Promotion of Work Style Design

    Promotion of Work Style Design ◼ Promoting Work Style Design, a project to improve our workstyles, with the aim of enhancing operational efficiency and productivity by achieving a better work-life balance. Number of Paid Leave Days Overtime Hours Taken • Through the promotion of activities 17.7 Hour

  30. Slide 30: Financial Situation

    07 Financial Situation Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 29 30

  31. Slide 31: Consolidated Balance Sheet

    Consolidated Balance Sheet ◼ Net assets increased to 85.0 billion yen, up 7.8 billion yen from the end of FY2021. ◼ Shareholders’ equity ratio increased to 47.0％ billion yen, up 4.6 pp from the end of FY2021. ◼ Current ratio increased to 117.2%, up 8.7 pp from the end of FY2021, further improving ma

  32. Slide 32: EBITDA/Cash Flows

    EBITDA/Cash Flows ▍EBITDA ◼ EBITDA expanded significantly to 10.3 +6.4 billion yen 10.3 billion yen, up 6.4 billion yen billion yen from FY2021. 3.9 billion yen FY2021 FY2022 ▍Cash Flows ◼ Cash flows from operating activities amounted to 5.6 billion yen due to a return to the black for operating pro

  33. Slide 33: Capital Expenditures/Depreciation and Amortization

    Capital Expenditures/Depreciation and Amortization ▍Capital Expenditures ◼ Capital expenditures decreased by 0.8 billion 5.7 billion yen ●● 41 4.9 yen from the previous fiscal year to 4.9 billion. billion yen 億円yen billion ◼ Capital investments in factories in Dalian and other locations were complet

  34. Slide 34: Data Book

    08 Data Book Copyright © ONWARD HOLDINGS CO., LTD. © Copyright 2007-2015 ONWARD HOLDINGS CO.,LTD. 34 33 34

  35. Slide 35: FY2022 Full-Year Net Sales & Operating Profit Increases/Decreases by Company

    FY2022 Full-Year Net Sales & Operating Profit Increases/Decreases by Company (Billion yen) ▍Net Sales +9.7 +0.5 +0.6 +0.3 176.1 +0.5 +0.9 (＋7.6) -1.1 -1.5 +0.5 +0.4 -3.2 168.5 FY2021 Onward Onward Island Chacott Creative Yamato Other Europe America Asia Consolidated FY2022 Full year Kashiyama + Trad

  36. Slide 36: FY2022 Breakdown of SG&A, Non-Operating and Extraordinary Profit/Loss

    FY2022 Full-Year: Breakdown of SG&A Expenses, Non-Operating Profit/Loss and Extraordinary Profit/Loss (Consolidated) YoY YoY (Million yen) FY2021 FY2022 FY2021 FY2022 (% of Change) (Million yen) (% of Change) 10 Non-Operating Profit 3,423 1,380 -59.7% 1 Personnel 35,312 35,036 -0.8% 11 Interest inco

  37. Slide 37: End-FY2022 Consolidated Balance Sheet

    End-FY2022 Consolidated Balance Sheet FY2021 FY2022 Change Reasons for change (Billion yen) End End 1 Total Assets 157.7 159.1 +1.4 2 Current Assets 60.5 62.2 +1.7 3 Cash and Deposits 15.2 13.8 -1.4 Accounts 4 14.2 13.9 -0.3 Receivable-trade 5 Inventory 26.8 30.7 +3.9 Increase in purchases to expand

  38. Slide 38: FY2023 Consolidated Performance Forecast

    FY2023 Consolidated Performance Forecast First Half Second Half Full-Year (Million yen) % of % of % of FY2022 FY2023 Change Change FY2022 FY2023 Change Change FY2022 FY2023 Change Change 1 Net Sales 82,166 86,200 +4,034 +4.9% 93,906 98,800 +4,894 +5.2% 176,072 185,000 +8,928 +5.1% 2 Gross Profit 44,

  39. Slide 39: FY2023 Forecast by Segment

    FY2023 Forecast of Net Sales & Operating Profit by Segment First Half Second Half Full-Year % of % of % of (Million yen) FY2022 FY2023 Change FY2022 FY2023 Change FY2022 FY2023 Change Change Change Change Net Sales 59,704 63,086 +3,382 +5.7% 68,968 71,881 +2,913 +4.2% 128,672 134,967 +6,295 +4.9% 1

  40. Slide 40: FY2023 Forecast by Company

    FY2023 Forecast of Net Sales & Operating Profit by Company First Half Second Half Full-Year % of % of % of (Million yen) FY2022 FY2023 Change FY2022 FY2023 Change FY2022 FY2023 Change Change Change Change Net Sales 46,055 48,740 +2,685 +5.8% 55,054 56,439 +1,385 +2.5% 101,109 105,179 +4,070 +4.0% 1

  41. Slide 41: FY2023 Performance Forecasts by Group

    FY2023 Performance Forecasts by Group First Half Second Half Full-Year (Million yen) % of % of % of FY2022 FY2023 Change FY2022 FY2023 Change FY2022 FY2023 Change Change Change Change 1 Net Sales 46,055 48,740 +2,685 +5.8% 55,054 56,439 +1,385 +2.5% 101,109 105,179 +4,070 +4.0% Onward Kashiyama 2 Gr

  42. Slide 42: 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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