Onward : ［Delayed］Consolidated Financial Results for the Three Months Ended May 31, 2021［Japanese GAAP］

[Delayed]Consolidated Financial Results for the Three Months Ended May 31, 2021 [Japanese GAAP]

July 8, 2021

Company name: Onward Holdings Co., Ltd.

Stock exchange listing: Tokyo Stock Exchange, Nagoya Stock Exchange

Securities code: 8016

URL: https://www.onward-hd.co.jp/site/english/

Representative: Michinobu Yasumoto, President and CEO

Contact: Osamu Sato, Director in charge of Finance, Accounting, Investor relations

Phone: [phone]

Scheduled date of filing quarterly securities report: July 14, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary materials on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled (for institutional investors, securities analysts, and the press)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Performance for the Three Months Ended May 31, 2021 (March 1, 2021 - May 31, 2021)

(1) Consolidated Operating Results (cumulative)	(% indicates changes from the previous corresponding period.)
			Net sales			Operating profit			Recurring profit			Profit attributable to
									owners of parent
	Three months ended		Million yen	%	Million yen	%		Million yen	%		Million yen	%
	May 31, 2021	46,022	7.9		1,147	-	1,976	-	2,060	-
	May 31, 2020		42,653	(34.3)		(1,851)	-		(1,746)	-		(2,417)	-

(Note) Comprehensive income: Three months ended May 31, 2021:	3,594 million yen [663.4%]
			Three months ended May 31, 2020:	470 million yen [(50.9)%]
			Basic earnings per		Diluted earnings
			share		per share
	Three months ended		Yen		Yen
	May 31, 2021	15.20	15.17
	May 31, 2020		(17.90)		-

(Reference) EBITDA (operating profit + depreciation and amortization):

Three months ended May 31, 2021: 2,447 million yen [-%]

Three months ended May 31, 2020: (304) million yen [-%]

(Notes) 1. The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and "Implementation Guidance on Accounting Standard for Revenue Recognition" (ASBJ Guidance No. 30, March 26, 2021) early, from the beginning of the first quarter of the fiscal year under review.

1. 2. The presentation method has been changed from the first quarter of the fiscal year under review, and therefore, with regard to net sales, operating profit, and EBITDA in the Consolidated Operating Results (cumulative), the Company states figures and year-on-year changes after reclassification that reflect this change in the presentation method.

2. Consolidated Financial Position

	Total assets	Net assets	Shareholders'
	equity ratio
	Million yen	Million yen	%
As of May 31, 2021	179,438	59,206	32.8
As of February 28, 2021	196,052	59,509	28.9

(Reference) Shareholders' equity: As of May 31, 2021: 58,808 million yen As of February 28, 2021: 56,723 million yen

2. Dividends

Annual dividends per share

1st quarter-end

2nd quarter-

3rd quarter-

Year-end

Total

end

end

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

-

-

-

12.00

12.00

February 28, 2021

Fiscal year ending

-

February 28, 2022

Fiscal year ending

February 28, 2022

-

-

12.00

12.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently: No

3. Consolidated Performance Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 - February 28, 2022)

(% indicates changes from the previous corresponding period.)

												Profit attributable		Basic earnings
			Net sales			Operating profit		Recurring profit		to owners of
									per share
												parent
			Million yen	%		Million yen	%		Million yen	%		Million yen	%		Yen
	1H (cumulative)	89,300	9.8	(3,000)	-	(3,000)	-	2,200	-	16.25
	Full year		190,500	8.3		3,200	-		3,000	-		6,300	-		46.52

(Note) Revision to the performance forecast announced most recently: No

The presentation method has been changed from the first quarter of the fiscal year under review, and therefore, year-on-year change in net sales has been calculated using the figures for the same period of the previous fiscal year after reclassification that reflect this change in the presentation method.

(Reference) EBITDA (operating profit + depreciation and amortization):

Full year ending February 28, 2022 (forecast): 9,300 million yen [-%]

Full year ended February 28, 2021: (14,133) million yen [-%]

* Notes:

1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): None
   Newly included: - (Company name:)

Excluded:

- (Company name:)

1. Application of special accounting methods for the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Total number of issued shares (common stock)
5. 1. Total number of issued shares at the end of the period (including treasury shares):

As of May 31, 2021:	157,921,669 shares
As of February 28, 2021:	157,921,669 shares
2) Total number of treasury shares at the end of the period:
As of May 31, 2021:	22,315,616 shares
As of February 28, 2021:	22,322,123 shares
3) Average number of shares outstanding during the period:
Three months ended May 31, 2021:	135,605,426 shares
Three months ended May 31, 2020:	135,091,266 shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of performance forecast and other notes

The performance outlook and other forward-looking statements herein are based on information currently available to the Company and certain assumptions that have been deemed reasonable. Actual performance may differ significantly from these forecasts due to a wide range of factors. For conditions used as the assumptions for the performance forecast and notes on the use of performance forecast, please refer to "1. Qualitative Information on Quarterly Financial Results for the Period under Review (3) Explanation of Consolidated Performance Forecast and Other Forward-looking Information" on page 3 of the Attachments.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results for the Period under Review ......................	2
(1)	Explanation of Operating Results ....................................................................................................	2
(2)	Explanation of Financial Position ....................................................................................................	3
(3)	Explanation of Consolidated Performance Forecast and Other Forward-looking Information .......	3
2. Quarterly Consolidated Financial Statements and Principal Notes ....................................................	4
(1)	Quarterly Consolidated Balance Sheets ...........................................................................................	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ...................................	6
(3)	Notes to Quarterly Consolidated Financial Statements ....................................................................	8
	(Uncertainties of entity's ability to continue as going concern) ..................................................	8
	(Notes when there are significant changes in amounts of shareholders' equity) ..............................	8
	(Changes in accounting policies) ...................................................................................................	8
	(Additional information) ...............................................................................................................	9
	(Notes to Quarterly Consolidated Statements of Income) .............................................................	10
	(Segment information, etc.) .......................................................................................................	11
	(Significant events after reporting period) ................................................................................	12

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1. Qualitative Information on Quarterly Financial Results for the Period under Review

(1) Explanation of Operating Results

During the three months ended May 31, 2021, the outlook of the Japanese economy continued to remain uncertain with no end in sight to the spread of COVID-19, which led to the declaration of a state of emergency and priority measures to prevent the spread of the virus being issued intermittently as well as temporary closures and shorter business hours being requested again to large-scale commercial facilities.

In response to this harsh management environment, the Company worked to mitigate the burden of losses arising from temporary closures of physical stores by such means as curtailing procurement and reducing fixed costs. In addition, the Company steadily implemented the global business reforms that have been conducted since the autumn of 2019.

As a result of the above, consolidated net sales amounted to 46,022 million yen (a 7.9% increase year-on- year), consolidated operating profit amounted to 1,147 million yen (operating loss of 1,851 million yen for the same period of the previous fiscal year), consolidated recurring profit amounted to 1,976 million yen (recurring loss of 1,746 million yen for the same period of the previous fiscal year), and profit attributable to owners of parent amounted to 2,060 million yen (loss attributable to owners of parent of 2,417 million yen for the same period of the previous fiscal year). Accordingly, the Company restored profitability at all levels of profit, namely, operating profit and loss, recurring profit and loss, and net profit and loss.

Furthermore, the Group has adopted EBITDA (operating profit + depreciation and amortization) as a management indicator with the purpose of enabling convenient comparisons between companies regardless of differences in accounting standards, amid its efforts to accelerate growth through enhancement and expansion of business foundations that utilize creation of new businesses, M&A, etc.

EBITDA for the three months ended May 31, 2021 was 2,447 million yen ((304) million yen for the same period of the previous fiscal year).

The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and "Implementation Guidance on Accounting Standard for Revenue Recognition" (ASBJ Guidance No. 30, March 26, 2021) from the beginning of the first quarter of the fiscal year under review. The details are described in "2. Quarterly Consolidated Financial Statements and Principal Notes, (3) Notes to Quarterly Consolidated Financial Statements, (Changes in accounting policies)."

In addition, the presentation method has been changed from the beginning of the first quarter of the fiscal year under review. Therefore, for year-on-year comparison of operating results, the Company uses the figures in the Quarterly Consolidated Financial Statements for the first quarter of the previous fiscal year after reclassification, which reflect this change in the presentation method. The details of the change in the presentation method are described in "2. Quarterly Consolidated Financial Statements and Principal Notes, (3) Notes to Quarterly Consolidated Financial Statements, (Additional information), (Changes in the presentation method)."

Status by segment is as follows.

[Apparel Business]

In the domestic business, Onward Kashiyama Co., Ltd., which is a core group company, implemented new sales strategies integrating physical stores with e-commerce, such as the opening of ONWARD CROSSET STORE, an OMO (Online Merges with Offline) store, as well as promotional initiatives using its owned media "ONWARD CROSSET MAG." And other measures such as selling the products that missed sales opportunities in the previous fiscal year at proper price and curbing discount sales were also successful. As a result of these strategies and measures, both sales and profit increased. In addition, at Tiaclasse Co., Ltd., whose main sales channel is e-commerce, both sales and profit increased as in the previous fiscal year. Furthermore, sales increased at Island Co., Ltd., which has Grace Continental as its core brand, and at Onward Personal Style Co., Ltd., which develops KASHIYAMA, a made-to-order suit brand.

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