オンワードホールディングス（8016） – [Delayed]Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 [Japanese GAAP]

[Delayed]Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 [Japanese GAAP] April 7, 2022 Company name: Onward Holdings Co., Ltd. Stock exchange listing: Tokyo 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: +81-3-4512-1030 Scheduled date of Annual General Meeting of Shareholders: May 26, 2022 Scheduled date of commencing dividend payments: May 27, 2022 Scheduled date of filing annual securities report: May 27, 2022 Availability of supplementary materials on financial results: Available Schedule of 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 Fiscal Year Ended February 28, 2022 (March 1, 2021 – February 28, 2022) (1) Consolidated Operating Results Fiscal year endedFebruary 28, 2022 February 28, 2021(Note) Comprehensive income: Fiscal year ended February 28, 2022: 11,657 million yen [–%] Million yen(1,079)(20,173)Million yen168,453175,899%(4.2)(29.1)%––Operating profit (% indicates changes from the previous corresponding period.) Profit attributable to owners of parentMillion yen8,566(23,181)Million yen507(20,174)Recurring profit %––%––Net sales Fiscal year ended February 28, 2021: (20,032) million yen [–%] Basic earnings per share Diluted earnings per shareReturn on equity Ratio ofrecurring profit to total assetsRatio ofoperating profit to net salesFiscal year ended February 28, 2022 February 28, 2021(Reference) Share of profit (loss) of entities accounted for using equity method: Yen63.17(171.18)%13.9(31.6)Yen63.04– Fiscal year ended February 28, 2022: (73) million yen Fiscal year ended February 28, 2021: (70) million yen EBITDA (operating profit + depreciation and amortization): %0.3(9.4)%(0.6)(11.5)Fiscal year ended February 28, 2022: 3,915 million yen [–%] Fiscal year ended February 28, 2021: (14,133) 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 fiscal year under review. 2. The presentation method has been changed from the fiscal year under review, and therefore, with regard to net sales, operating profit, and EBITDA in the Consolidated Operating Results, 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 Net assets per shareShareholders’ equity ratio%42.428.9Yen493.14418.32As of February 28, 2022 As of February 28, 2021 (Reference) Shareholders’ equity: As of February 28, 2022: 66,886 million yen As of February 28, 2021: 56,723 million yen Million yen157,727196,052Million yen77,25759,509 (3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Million yen7,814(19,614)Million yen21,6856,091Million yen(36,173)5,860Cash and cash equivalents at end of periodMillion yen15,19921,270Fiscal year endedFebruary 28, 2022 February 28, 2021 2. Dividends Fiscal year endedFebruary 28, 2021Fiscal year endedFebruary 28, 2022Fiscal year endingFebruary 28, 2023 (Forecast)28, 2023) 1st quarter-endAnnual dividends per share 3rd 2nd quarter-quarter-endendYear-end Total dividends (annual) Payout ratio(consolidated)Total YenYenYenYenYenMillion yen–––––––––12.0012.001,62712.0012.001,62712.0012.00Ratio of dividends to net assets (consolidated)%2.12.4%–19.095.73. Consolidated Performance Forecast for the Fiscal Year Ending February 28, 2023 (March 1, 2022 – February Net sales Operating profitRecurring profit (% indicates changes from the previous corresponding period.) Profit attributable to owners of parentBasic earnings per share(4.7)1H (cumulative)Full year0.1(Reference) EBITDA (operating profit + depreciation and amortization): % Million yen(1,800)2,100% Million yen(1,750)–2,050–% Million yen(1,250)–1,700304.1%–(80.2)Million yen77,000168,700Yen(9.22)12.54Full year ending February 28, 2023 (forecast): 7,080 million yen [180.8%] Full year ended February 28, 2022: 3,915 million yen [–%] * Notes: (1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries resulting in changes in scope of consolidation): None Newly included: – (Company name:) – (Company name:) Excluded: (2) Changes in accounting policies, changes in accounting estimates, and restatement 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 (3) Total number of issued shares (common stock) 1) Total number of issued shares at the end of the period (including treasury shares): As of February 28, 2022: As of February 28, 2021: 157,921,669 shares157,921,669 shares2) Total number of treasury shares at the end of the period: As of February 28, 2022: As of February 28, 2021: 22,287,771 shares22,322,123 shares3) Average number of shares outstanding during the period: Fiscal year ended February 28, 2022: Fiscal year ended February 28, 2021: 135,619,330 shares135,420,529 shares(Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (March 1, 2021 – February 28, 2022) (1) Non-consolidated Operating Results Net sales Fiscal year endedFebruary 28, 2022 February 28, 2021Million yen14,47811,356%27.58.0(% indicates changes from the previous corresponding period.) Operating profit Million yen10,7996,989%54.517.7Recurring profit Million yen5,345(3,170)%––Net income Million yen8,525(22,397)%––Basic earnings per shareDiluted earnings per shareFiscal year endedFebruary 28, 2022 February 28, 2021Yen62.87(165.39)Yen62.74–(2) Non-consolidated Financial Position Total assets Net assets Net assets per shareShareholders’ equity ratio%58.643.7Yen580.53524.61As of February 28, 2022 As of February 28, 2021 (Reference) Shareholders’ equity: As of February 28, 2022: 78,739 million yen As of February 28, 2021: 71,136 million yen Million yen134,254162,749Million yen78,86171,275* These consolidated financial results are outside the scope of audit 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. Overview of Operating Results, etc.” on page 2 of the Attachments. Table of Contents – Attachments 1. Overview of Operating Results, etc. ………………………………………………………………………………………. 2 (1) Overview of Operating Results for the Fiscal Year under Review ………………………………………….. 2 (2) Overview of Financial Position for the Fiscal Year under Review …………………………………………. 3 (3) Overview of Cash Flows for the Fiscal Year under Review …………………………………………………… 3 (4) Basic Policy on Shareholder Returns and Dividends for the Fiscal Year under Review and the Next Fiscal Year ………………………………………………………………………………………………………………………….. 4 (5) Future Outlook ……………………………………………………………………………………………………………….. 4 2. Basic Policy on Selection of Accounting Standards …………………………………………………………………. 4 3. Consolidated Financial Statements and Principal Notes …………………………………………………………… 5 (1) Consolidated Balance Sheets ……………………………………………………………………………………………. 5 (2) Consolidated Statements of Income and Comprehensive Income ………………………………………….. 7 (3) Consolidated Statements of Changes in Equity …………………………………………………………………… 9 (4) Consolidated Statements of Cash Flows …………………………………………………………………………… 13 (5) Notes to Consolidated Financial Statements ……………………………………………………………………… 15 (Uncertainties of entity’s ability to continue as going concern) ……………………………………….. 15 (Significant accounting policies for preparation of Consolidated Financial Statements) …….. 15 (Changes in accounting policies) …………………………………………………………………………………… 19 (Changes in the presentation method) ……………………………………………………………………………. 21 (Notes to Consolidated Statements of Income) ………………………………………………………………… 21 (Notes to Consolidated Statements of Comprehensive Income) ………………………………………. 22 (Notes to Consolidated Statements of Changes in Equity) ………………………………………………….. 23 (Notes to Consolidated Statements of Cash Flows) …………………………………………………………… 25 (Segment information, etc.) ………………………………………………………………………………………… 26 (Per share information) ………………………………………………………………………………………………. 31 (Significant events after reporting period) ……………………………………………………………………. 33 (Omission of disclosure) ……………………………………………………………………………………………. 35 4. Others ……………………………………………………………………………………………………………………………… 36 Changes in officers ……………………………………………………………………………………………………. 36 1 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Fiscal Year under Review During the fiscal year under review (from March 1, 2021 to February 28, 2022), the Japanese economy remained in a difficult situation due to the prolonged impact of COVID-19, such as stay-at-home due to the application of the priority measures such as for prevention of the spread of disease taken throughout Japan on account of the rapid spread of the Omicron variant and rising prices of raw materials, even though an increase in vaccination rates temporarily halted the spread of infection. In these circumstances, the Group has steadily promoted the integration of physical stores and e-commerce as a priority measure in the Apparel Business and expanded the number of OMO (Online Merges with Offline)-type stores which introduced the Click and Try system, as well as reduced lost sales opportunities caused by out of stock items through full-scale operation of an integrated inventory management system, thus realizing net sales growth and higher gross profit margins in both existing physical stores and e-commerce. Due to the achievements, etc. of global business reforms that have been conducted since the fiscal year ended February 28, 2020, such as withdrawals from unprofitable businesses and unprofitable stores, operating profitability significantly improved. Thanks to efforts at restoring financial health mainly by securitizing non-current assets and streamlining fund management, the shareholders’ equity ratio increased 13.5pt year-on-year to 42.4%. As a result of the above, consolidated net sales amounted to 168,453 million yen (a 4.2% decrease year-on-year), a consolidated operating loss was recorded at 1,079 million yen (an operating loss of 20,173 million yen for the previous fiscal year), a consolidated recurring profit was recorded at 507 million yen (a recurring loss of 20,174 million yen for the previous fiscal year), and profit attributable to owners of parent amounted to 8,566 million yen (a loss attributable to owners of parent of 23,181 million yen for the previous fiscal year). 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 fiscal year under review was 3,915 million yen ((14,133) million yen for the previous fiscal year). Status by segment is as follows. [Apparel Business] In the domestic business, Onward Kashiyama Co., Ltd., which is a core group company, withdrew from unprofitable businesses and unprofitable stores and steadily executed sales strategies such as expanding OMO-type stores. As a result, it increased net sales and significantly reduced losses. Despite a decrease in sales at Onward Trading Co., Ltd., which conducts a B2B business, profit increased owing to robust net sales in the highly profitable uniform business. Sales also grew at Tiaclasse Co., Ltd., whose main sales channel is e-commerce, and at Onward Personal Style Co., Ltd., which is developing the KASHIYAMA made-to-order suit brand that has garnered high praise in this year’s job-hunting season. In the overseas business, due mainly to withdrawal from unprofitable businesses under the global business reforms, profitability improved, and the profit and loss improved significantly. As a result, the loss was significantly reduced despite a decrease in sales for the Apparel Business as a whole. [Lifestyle Business] Sales increased significantly, and profitability was restored at Chacott Co., Ltd., which operates a wellness business, due to the recovery of orders received for its mainstay ballet products, which faced severe circumstances due to the impact of COVID-19 in the previous fiscal year. Sales and profit increased at Yamato 2 Co., Ltd., which conducts a gift business, at Creative Yoko Co., Ltd., which is engaged in a pet business, and at KOKOBUY Co., Ltd., which conducts a beauty and cosmetics business. Meanwhile, sales continued to decrease at Onward Beach Resort Guam, Inc., which operates a resort business in Guam, due to a sharp decline in visitors to Guam. As a result, both sales and profit increased for the Lifestyle Business as a whole. (2) Overview of Financial Position for the Fiscal Year under Review Total assets on a consolidated basis as of the end of the fiscal year under review decreased by 38,324 million yen compared with the end of the previous fiscal year to 157,727 million yen. This was primarily due to decreases in cash and deposits of 6,091 million yen, notes and accounts receivable—trade of 4,123 million yen, merchandise and finished goods of 5,000 million yen, buildings and structures of 1,308 million yen, and land of 11,887 million yen. Liabilities decreased by 56,073 million yen compared with the end of the previous fiscal year to 80,470 million yen. This was primarily due to decreases in short-term borrowings of 37,861 million yen, long-term lease obligations of 7,939 million yen, notes and accounts payable—trade of 7,110 million yen, and long-term borrowings of 4,053 million yen. Net assets increased by 17,748 million yen compared with the end of the previous fiscal year to 77,257 million yen. This was primarily due to profit attributable to owners of parent of 8,566 million yen, dividends of surplus of 1,627 million yen, and an increase in retained earnings at the beginning of the period due to changes in the accounting policies of 272 million yen. As a result, the shareholders’ equity ratio was 42.4%. (3) Overview of Cash Flows for the Fiscal Year under Review 1) Status of cash flows as of the end of the fiscal year under reviewCash flows provided by operating activities amounted to 7,814 million yen (an outflow of 19,614 million yen for the previous fiscal year) mainly due to a profit before income taxes, an impairment loss, a decrease in trade receivables, and a decrease in trade payables. Cash flows provided by investing activities amounted to 21,685 million yen (an inflow of 6,091 million yen for the previous fiscal year) mainly due to proceeds from sales of property, plant and equipment and sales of shares of subsidiaries resulting in change in scope of consolidation. Cash flows used in financing activities amounted to 36,173 million yen (an inflow of 5,860 million yen for the previous fiscal year), which primarily included a net increase (decrease) in borrowings and repayment of long-term borrowings. As a result, cash and cash equivalents at the end of the fiscal year under review decreased by 6,070 million yen compared with the end of the previous fiscal year to 15,199 million yen. 3 Shareholders’ equity ratio (%)Shareholders’ equity ratio based on fair value (%) Ratio of interest-bearing debt to cash flow (%) Interest coverage ratio (times) 2) Indicators related to cash flowsFiscal year ended February 28, 2018 Fiscal year ended February 28, 2019 Fiscal year ended February 29, 2020 Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 59.246.855.130.138.330.128.917.442.423.8350.61,409.8875.8(461.1)492.340.912.617.4(46.5)18.3 Shareholders’ equity ratio: Shareholders’ equity ratio based on fair value: Total market value of shares / Total assets Ratio of interest-bearing debt to cash flow: Interest coverage ratio: (Note 1) All indicators were calculated using consolidated financial figures. (Note 2) The total market value of shares was calculated based on the total number of issued shares excluding Interest-bearing debt / Cash flow Cash flow / Interest paid Shareholders’ equity / Total assets treasury shares.(Note 3) Cash flows from operating activities are used. (Note 4) Interest-bearing debt includes all debt recorded on the Consolidated Balance Sheets for which interest is paid.(4) Basic Policy on Shareholder Returns and Dividends for the Fiscal Year under Review and the Next Fiscal Year The Company positions returning profits to its shareholders as one of the most important management measures, with the basic policy to provide stable and appropriate shareholder returns linked to performance. With regard to dividends for the fiscal year under review, despite the extremely poor performance, the Company plans to pay out a dividend of 12 yen per share in light of its basic policy regarding dividend policy. The Company will determine whether to conduct a share buyback by taking into account factors such as its needs for funds. The Company will flexibly utilize its internal reserve for strategic investments in the establishment of a robust business structure, enhancement of financial constitution, and other efforts while giving consideration to balancing its needs for funds. (5) Future Outlook For future outlook, please refer to “FY02/22 Results Presentation Supplement” announced today. 2. Basic Policy on Selection of Accounting Standards In consideration of comparability between each reporting period of Consolidated Financial Statements and comparability between companies, the Group plans to prepare its Consolidated Financial Statements using the Japanese GAAP for the time being. The Group plans to appropriately handle the adoption of IFRS (International Financial Reporting Standards) in consideration of various circumstances in Japan and overseas. 4 3. Consolidated Financial Statements and Principal Notes (1) Consolidated Balance Sheets As of February 28, 2021 As of February 28, 2022 (Million yen) Assets Current assets Cash and deposits Notes and accounts receivable—trade Notes and accounts receivable—trade, and contract assetsMerchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciationBuildings and structures, netLand Leased assets Accumulated depreciationLeased assets, netOther Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Investment securitiesLong-term loans receivableLong-term prepaid expensesRetirement benefit assetDeferred tax assetsOtherAllowance for doubtful accountsTotal investments and other assetsTotal non-current assets Total assets 21,301 18,251 –28,909 1,010 4,435 6,829 (277)80,460 61,909 (37,592)24,316 35,259 9,969 (5,618)4,351 26,766 (18,868)7,898 71,825 5,251 5,416 10,667 14,312 1,662 440 2,814 7,486 6,674 (292)33,099 115,592 196,052 15,209–14,20423,9084492,4784,509(252)60,50858,027(35,019)23,00823,3719,998(6,239)3,75925,158(17,254)7,90358,0424,6314,7179,34914,1171,6835243,2484,3386,078(163)29,82797,219157,7275 As of February 28, 2021 As of February 28, 2022 (Million yen) Liabilities Current liabilities Notes and accounts payable—trade Electronically recorded obligations—operating Short-term borrowings Current portion of long-term borrowings Lease obligations Income taxes payable Provision for bonuses Provision for bonuses for directors Provision for sales returns Provision for point card certificates Other Total current liabilities Non-current liabilities Long-term borrowings Lease obligations Deferred tax liabilities for land revaluation Retirement benefit liability Provision for retirement benefits for directors and corporate auditorsAsset retirement obligations Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securitiesDeferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets 13,472 8,484 56,566 5,052 2,040 669 589 25 125 636 11,887 99,549 16,43011,615 761 3,482 232 1,661 2,809 36,993 136,543 30,079 50,390 9,321 (20,865)68,926 (1,939)15 (7,864)(1,669)(744)(12,202)138 2,646 59,509 196,052 6,36111,86018,7054,0538542,02262650––11,22555,76112,3773,6762412,8582472,5032,80424,70980,47030,07950,39015,391(20,831)75,030(1,646)1(5,698)(328)(472)(8,144)12210,24877,257157,7276 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income For the fiscal year ended February 28, 2021 For the fiscal year ended February 28, 2022 (Million yen) Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating loss Non-operating income Interest income Dividend income Foreign exchange gains Subsidy income Other Total non-operating income Non-operating expenses Interest expenses Loss on disposal of salesfloor fixtures, etc. Foreign exchange losses Share of loss of entities accounted for using equity methodNon-deductible consumption taxes Other Total non-operating expenses Recurring profit (loss) Extraordinary income Gain on sales of investment securities Gain on sales of non-current assets Gain on sales of shares of subsidiaries and associates Subsidies for employment adjustment, etc. Other Total extraordinary income Extraordinary losses Loss on valuation of investment securities Loss on sales of shares of subsidiaries and associates Impairment loss Loss on liquidation of subsidiaries and associates Loss on liquidation of business Extraordinary loss due to closing and other Other Total extraordinary losses Profit (loss) before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit (loss) Profit attributable to non-controlling interests Profit (loss) attributable to owners of parent 7 175,899 105,196 70,702 90,876 (20,173) 55 193 –884 820 1,954 595 213 443 70 166 466 1,955 (20,174) 8 8,416 154 1,696 237 10,513 1,685 5,171 3,299 –953 3,893 896 15,899 (25,560) 814 (3,706) (2,892) (22,668) 513 (23,181) 168,453 80,841 87,612 88,691 (1,079)52 1,340 99 1,013 917 3,423 391 96 –73 252 1,022 1,836 507 105 17,921 2,944 289 67 21,327 –1,829 1,741 1,968–1,620 761 7,921 13,912 2,695 2,523 5,218 8,693 127 8,566 Consolidated Statements of Comprehensive Income Profit (loss) Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to: Owners of parent Non-controlling interests For the fiscal year ended February 28, 2021 For the fiscal year ended February 28, 2022 (Million yen) (22,668)2,642(7)1,064(1,081)17* 2,635(20,032)(20,529)4978,693292(13)1,0421,370272* 2,96311,65711,5011558 (3) Consolidated Statements of Changes in EquityFiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity (Million yen)Accumulated other comprehensive income Deferred Valuation gains or difference on losses on available-for-hedges sale securities30,07950,04346,338(21,437)105,023 (4,581)22(10,011)(10,011)30,07950,04336,326(21,437)95,012 (4,581)22(3,240)(23,181)(225)(356)(0)571(3,240)(23,181)(0)345 (356)347 347–347(27,005)571(26,085)2,64230,07950,3909,321(20,865)68,926 (1,939) 2,642(7)(7)15Balance as at March 1, 2020 Cumulative effects of changes in accounting policiesRestated balance Changes during period Dividends of surplus Loss attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Reversal of revaluation reserve for land Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Total changes in items during periodBalance as at February 28, 2021 9 Accumulated other comprehensive income Revaluation reserve for landForeign currency translation adjustmentRemeasurements of defined benefit plansTotal accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets (9,285)(604)(762)(15,211)4843,74094,036(9,285)(604)(762)(15,211)4843,74084,025(10,011)(3,240)(23,181)(0)345(356)347Balance as at March 1, 2020 Cumulative effects of changes in accounting policiesRestated balance Changes during period Dividends of surplus Loss attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Reversal of revaluation reserve for land Change in ownership interest of parent due to transactions with non-controlling interests Net changes in items other than shareholders’ equity Total changes in items during periodBalance as at February 28, 2021 1,421 (1,065)3,008(345)(1,093)1,5691,421 (1,065)3,008(345)(1,093)(24,516)(7,864)(1,669)(744)(12,202)1382,64659,50917 17 10 Fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity (Million yen)Accumulated other comprehensive income Deferred Valuation gains or difference on losses on available-for-hedges sale securities30,07950,3909,321(20,865)68,926 (1,939)15272272 30,07950,3909,594(20,865)69,198 (1,939)15(1,627)8,566(18)(1,124)(0)34(1,627)8,566 (0)16 (1,124)−−5,797345,831 30,07950,39015,391(20,831)75,030 (1,646)292292(13)(13)1Balance as at March 1, 2021 Cumulative effects of changes in accounting policiesRestated balance Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Reversal of revaluation reserve for land Net changes in items other than shareholders’ equity Total changes in items during periodBalance as at February 28, 2022 11 Accumulated other comprehensive income Revaluation reserve for landForeign currency translation adjustmentRemeasurementsof defined benefit plansTotal accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets (7,864)(1,669)(744)(12,202)1382,64659,509(7,864)(1,669)(744)(12,202)1382,64659,781272(1,627)8,566(0)16(1,124)2,1661,3412724,058(16)7,60111,6442,1661,3412724,058(16)7,60117,475(5,698)(328)(472)(8,144)12210,24877,257Balance as at March 1, 2021 Cumulative effects of changes in accounting policiesRestated balance Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Reversal of revaluation reserve for land Net changes in items other than shareholders’ equity Total changes in items during periodBalance as at February 28, 2022 12 (4) Consolidated Statements of Cash Flows Cash flows from operating activities Profit (loss) before income taxes Depreciation and amortization Impairment loss Amortization of goodwill Increase (decrease) in allowance for doubtful accounts Decrease (increase) in retirement benefit asset Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity methodLoss (gain) on disposal of non-current assets Loss on disposal of salesfloor fixtures, etc. Loss (gain) on sales of investment securities Loss (gain) on valuation of investment securities Loss (gain) on sales of shares of subsidiaries and associatesDecrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Income taxes refund Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment Purchase of investment securities Proceeds from sales of investment securities Purchase of long-term prepaid expenses Payments of guarantee deposits Proceeds from refund of guarantee deposits Payments for sales of shares of subsidiaries resulting in change in scope of consolidationProceeds from sales of shares of subsidiaries resulting in change in scope of consolidationOther, net Net cash provided by (used in) investing activities For the fiscal year ended February 28, 2021 For the fiscal year ended February 28, 2022 (Million yen) (25,560)5,6593,299786(56)(109)23(249)59570 (8,135)213(4)1,685 5,017 8,4186,578(10,112)(8,691)(20,572)252(421)(743)1,871(19,614)(91)75(4,249)17,755(88)520(48)(276)687(5,612)−(2,581)6,09113,9124,6051,741766(123)(434)(217)(1,392)39173(17,778)96(104)−(1,114)1,0043,405(1,013)3,7037,523245(425)(2,064)2,5367,814(32)55(2,929)32,270(10)687(27)(662)1,099(8,286)1,620(2,098)21,68513 Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Purchase of treasury shares Dividends paid Dividends paid to non-controlling interests Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalentsNet increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidationCash and cash equivalents at end of period For the fiscal year ended February 28, 2021 For the fiscal year ended February 28, 2022 (Million yen) 12,12210,390 (10,292)(0)(3,240)(739)(2,379)5,86052(7,609)28,780100 * 21,270(38,471)−(5,052)(0)(1,627)(2)8,980(36,173)602(6,070)21,270−* 15,19914 (5) Notes to Consolidated Financial Statements (Uncertainties of entity’s ability to continue as going concern) Not applicable. (Significant accounting policies for preparation of Consolidated Financial Statements)1. Disclosure of scope of consolidation (1) Number of consolidated subsidiaries and names of major consolidated subsidiaries Number of consolidated subsidiaries: 48 Names of major consolidated subsidiaries Onward Kashiyama Co., Ltd. Onward Trading Co., Ltd. Chacott Co., Ltd. Creative Yoko Co., Ltd. Island Co., Ltd. Onward Personal Style Co., Ltd. Yamato Co., Ltd. Onward Creative Center Co., Ltd. Kokobuy Co., Ltd. Onward Italia S.p.A. Joseph Ltd. Onward Beach Resort Guam, Inc. Beginning in the fiscal year under review, Freeland S.r.L., Free Shoes S.r.L., Nadhour S.a.r.l., Zenith S.a.r.l., Jil Sander S.p.A., Jil Sander Paris S.a.r.l., Jil Sander Gmbh, Jil Sander UK Limited, Jil Sander CH S.A.G.L., Jil Sander USA Inc., and Jil Sander Japan Co., Ltd. have been excluded from the scope of consolidation due to sale of their shares. Onward Life Design Network Co., Ltd. was merged into Onward Resort & Golf Co., Ltd. as the surviving company and therefore has been excluded from the scope of consolidation. Birz Association Ltd., LaLa PLAN Co., Ltd., and Onward J Bridge Co., Ltd. were liquidated and therefore have been excluded from the scope of consolidation. (2) Names of major unconsolidated subsidiaries Bien Co., Ltd. Reasons for exclusion from scope of consolidation Unconsolidated subsidiaries have been excluded from the scope of consolidation because they are small in scale and the effects of their total assets, net sales, profit or loss (amount attributable to the Company’s share), retained earnings (amount attributable to the Company’s share), etc. on the Consolidated Financial Statements in the aggregate are not material. 2. Disclosure about application of equity method (1) Number of unconsolidated subsidiaries and associates accounted for using equity method 1 Names of major associates accounted for using equity method 15 Mulberry Japan Co., Ltd. (2) Names of major unconsolidated subsidiaries and associates not being accounted for using equity method Bien Co., Ltd. Reasons for not being accounted for using equity method Companies not accounted for using equity method have been excluded from the application of equity method because their effects on consolidated profit or loss, consolidated retained earnings, etc. are insignificant and immaterial individually or in the aggregate. (3) The fiscal year-end of Mulberry Japan Co., Ltd. is March 31, and its financial statements prepared on a basis similar to that for the year-end closing as of December 31 have been used for consolidation purposes. 3. Disclosure about fiscal years, etc. of consolidated subsidiaries Among the consolidated subsidiaries, companies whose fiscal year-end is different from the consolidated fiscal year-end are as follows. (1) Companies with fiscal year-end on November 30 Onward Italia S.p.A. Joseph Ltd. 9 other companies (2) Companies with fiscal year-end on December 31 Onward Beach Resort Guam, Inc. J. Press, Inc. Onward Fashion Trading (China) Co., Ltd. 14 other companies 4. Disclosure of accounting policies (1) Accounting policy for measuring significant assets 1) Accounting policy for measuring securities Available-for-sale securities Those with fair values Carried at the fair values prevailing at the fiscal year-end date (unrealized gains or losses are included as a component of net assets, and cost of sales is computed by the moving-average method). Those with no fair values Stated at cost using the moving-average method. 2) Accounting policy for measuring derivatives Stated at fair value. 3) Accounting policy for measuring inventories Inventories are measured at cost determined principally by the specific identification method (the balance sheet value is calculated using the inventory write-down method based on decreased 16 profitability). (2) Accounting policy for depreciation of significant assets 1) Property, plant and equipment (excluding leased assets) The Company and its domestic consolidated subsidiaries principally provide depreciation by the declining-balance method, while overseas consolidated subsidiaries provide depreciation by the straight-line method. Provided, however, that certain buildings (other than facilities attached to buildings) acquired on and after April 1, 1998 and facilities attached to buildings and structures acquired on and after April 1, 2016 are depreciated by the straight-line method. The useful lives of property, plant and equipment are summarized as follows: Buildings and structures Other 3 to 50 years 2 to 20 years 2) Intangible assets (excluding leased assets) Amortized by the straight-line method. Software costs for internal use are amortized over their expected useful lives (5 to 10 years) by the straight-line method. 3) Long-term prepaid expenses Amortized by the straight-line method. 4) Leased assets Leased assets pertaining to finance lease transactions without transfer of ownership Depreciated by the straight-line method with the leasing period as the useful life and without residual value. (3) Accounting policy for significant provisions 1) Allowance for doubtful accounts In order to prepare for probable future losses on collection, estimated amount uncollectible is provided for in accordance with the historical average charge-off ratio in the case of ordinary receivables. In the case of certain accounts designated as highly doubtful accounts, a specific allowance is provided for based on individual detailed credit analysis. 2) Provision for bonuses Provision for bonuses is recognized for the estimated amount to provide for payment of bonuses to employees. 3) Provision for bonuses for directors The Company and certain of its domestic consolidated subsidiaries recognize provision for bonuses for directors in an estimated amount to provide for payment of bonuses to their directors. 4) Provision for retirement benefits for directors and corporate auditors Certain domestic consolidated subsidiaries recognize provision for retirement benefits for directors and corporate auditors in an amount payable as of the end of the fiscal year based on internal regulations, to provide for payment of retirement benefits for Directors and Audit & Supervisory Board Member. (4) Accounting policy for retirement benefits 1) Method of allocating estimated retirement benefits to each reporting period In calculating retirement benefit liability, the method of allocating estimated retirement benefits 17 to each reporting period up to the end of the fiscal year under review is based on the benefit formula basis. 2) Accounting policy for actuarial differences and prior service costs Prior service costs are accounted for as expenses over a certain number of years within the average remaining years of service of the employees at the time of occurrence (5 to 10 years) using the straight-line method. Actuarial differences are accounted for as expenses over a certain number of years within the average remaining years of service of the employees at the time of occurrence during each fiscal year (5 to 10 years) using the straight-line method, commencing with the fiscal year following the one in which they were incurred. (5) Accounting policy for significant revenue and expenses The Company and its subsidiaries have adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and the “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30, March 26, 2021) (hereinafter referred to as “Accounting Standard for Revenue Recognition, etc.”), and the main content of performance obligations and ordinary times when revenue is recognized in core businesses are as follows. 1) Revenue related to wholesale sales 2) Revenue related to retail sales Revenue related to wholesale sales identifies the delivery and shipment of products as performance obligations. In wholesale sales, the performance obligation is fulfilled when the inspection by the customer is complete, but as there is no material difference between this and when the product ships, revenue is recognized when the product ships. Revenue related to retail sales identifies the delivery of products as a performance obligation. In retail sales, the performance obligation is normally fulfilled when a product is delivered, so revenue is recognized when the product is delivered. 3) Revenue related to service provision Revenue related to provision of services includes primarily licensing fees and royalties, and loans of these are identified as performance obligations. This performance obligation is fulfilled as contractual terms and conditions are performed, so revenue is recognized over a certain period of time. (6) Accounting policy for hedging 1) Accounting policy for hedging Deferred hedging is applied. However, appropriation procedures are applied to trade payables and trade receivables denominated in foreign currencies with forward exchange contracts. 2) Hedging instruments and hedge items The derivatives designated as hedging instruments are principally forward exchange contracts. The related hedged items are trade payables and trade receivables denominated in foreign currencies and scheduled transactions. 3) Hedging policy For the purpose of fixing cash flows denominated in Japanese yen from payables and receivables denominated in foreign currencies by avoiding the risk of future foreign currency exchange rate fluctuation in relation to export and import transactions denominated in foreign currencies, the Company enters into forward exchange contracts based on settlement dates in response to orders 18 received from and sent to business partners. 4) Evaluation of hedge effectiveness By setting up forward exchange contracts denominated in the same currencies with the same amounts and the same due dates to the amounts of orders received and sent denominated in foreign currencies, the Company ensures that the correlation from fluctuations in foreign currency exchange rates after entering into forward exchange contracts is maintained. (7) Accounting policy for goodwill Goodwill is evaluated on an individual basis and amortized on a straight-line basis over a reasonable number of years within 20 years. (8) Scope of cash and cash equivalents in Consolidated Statement of Cash Flows Funds (cash and cash equivalents) in the Consolidated Statement of Cash Flows are composed of cash on hand, bank deposits that can be withdrawn on demand, and short-term investments, which are highly liquid and readily convertible into cash, with an original maturity of 3 months or less and insignificant risk of changes in value. (9) Other significant information for preparation of consolidated financial statements 1) Accounting for Japanese consumption taxes Consumption taxes are accounted for by the tax exclusion method. 2) Application of consolidated taxation system The Company and certain of its domestic consolidated subsidiaries apply the consolidated taxation system. 3) Treatment of tax effect accounting for the transition from the consolidated taxation system to the group tax sharing system Regarding the transition into the group tax sharing system established by the “Act for Partial Amendment of the Income Tax Act, etc.” (Act No. 8 of 2020) and the items for which the single-entity taxation system has been revised in conjunction with the transition into the group tax sharing system, the Company and certain consolidated subsidiaries have not applied the provisions of paragraph 44 of “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, February 16, 2018), in accordance with the solution in paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System” (PITF No.39, March 31, 2020). The amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the tax laws prior to the amendment. (Changes in accounting policies) (Application of the Accounting Standard for Revenue Recognition, etc.) The Company has applied the Accounting Standard for Revenue Recognition, etc. from the beginning of the fiscal year under review, and recognizes revenue in the amount expected to be received in exchange for promised goods or services at the time when the control of these goods or services is transferred to the customer. The main changes resulting from the application of the Accounting Standard for Revenue Recognition, etc. are as follows. 19 (Revenue recognition for principal and agent transactions) Regarding transactions in which the Company acts an agent in providing goods to a customer, the Company previously recognized the gross amount of consideration to be received from the customer as revenue. However, the Company has shifted to the method by which it recognizes revenue at the net amount after deducting the amount to be paid to the supplier of goods from the amount to be received from the customer. Meanwhile, with regard to transactions in which the Company acts as a principal and whose revenue was previously recognized at the net amount after deducting an amount equivalent to distribution fees from the amount to be received from the customer, the Company has shifted to the method by which it recognizes revenue at the gross amount of consideration. (Revenue recognition for customer loyalty program) Regarding the sale of goods under the customer loyalty program, which grants points to customers when goods are sold, the Company previously recognized revenue at the time of sale, recorded an amount expected to be used from the points granted as “Provision for point card certificates,” and recorded the amount of provision for point card certificates as “Selling, general and administrative expenses.” However, the Company has shifted to the method by which it identifies the points granted as performance obligations and allocates the transaction price based on the standalone selling price estimated in consideration of the points that are expected to expire in the future. (Revenue recognition for sale with a right of return) Regarding “Provision for sales returns,” which was previously recorded under “Current liabilities” based on an amount equivalent to gross profit, the Company has shifted to the method by which it recognizes revenue and cost of sales at the amounts excluding amounts equivalent to revenue and cost of sales for merchandise and finished goods that are expected to be returned. Compensation for merchandise and finished goods that are expected to be returned is recorded as refund liabilities in “Other” under “Current liabilities,” and assets recognized as the right to recover merchandize and finished goods from customers at the time of settlement of refund liabilities are recorded as return assets in “Notes and accounts receivable—trade, and contract assets” under “Current assets.” The application of the Accounting Standard for Revenue Recognition, etc. is subject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application of the new accounting policy, assuming it has been applied to periods prior to the beginning of the fiscal year under review, is added to or subtracted from retained earnings at the beginning of the fiscal year under review, and the new accounting policy is applied from the said beginning balance. However, the new accounting policy has not been retrospectively applied to contracts for which nearly all the revenue amounts had been recognized in accordance with the previous treatment prior to the beginning of the fiscal year under review, by applying the method provided for in paragraph 86 of the Accounting Standard for Revenue Recognition. As a result, for the fiscal year under review, net sales increased by 7,053 million yen, cost of sales decreased by 2,662 million yen, selling, general and administrative expenses increased by 9,752 million yen, operating loss increased by 35 million yen, and recurring loss and profit before income taxes each decreased by 35 million yen. In addition, the balance of retained earnings at the beginning of the period increased by 272 million yen. Due to the application of the Accounting Standard for Revenue Recognition, etc., “Notes and accounts receivable—trade,” which was presented under “Current assets” in the Consolidated Balance Sheets for the previous fiscal year, is instead included in “Notes and accounts receivable—trade, and contract assets” from the fiscal year under review. In accordance with the transitional treatment provided for in paragraph 89-2 of the Accounting Standard for Revenue Recognition, the Company has not reclassified financial statements for the previous fiscal year by using the new presentation method. 20 (Changes in the presentation method) (Consolidated Balance Sheets, Consolidated Statements of Income, and Consolidated Statements of Cash Flows) While real estate lease revenue and real estate lease expenses were previously recorded in “Non-operating income,” “Selling, general and administrative expenses,” and “Non-operating expenses,” they are recorded in “Net sales” and “Cost of sales” from the fiscal year under review. The Company positions real estate leasing as one of its major businesses, recognizes real estate lease revenue as a steady source of revenue, and expects real estate lease revenue to grow along with an increase in the number of leasehold properties. In addition, the relevant department now appropriately manages the profitability of the real estate leasing business. In light of these circumstances, in order to present the actual state of the business more appropriately, the Company has changed the presentation method. Consolidated Financial Statements for the previous fiscal year have been reclassified to reflect this change in the presentation method. As a result, 1,434 million yen presented in “Rental income from land and buildings” and 142 million yen presented in “Other” under “Non-operating income” in the Consolidated Statements of Income for the previous fiscal year have been reclassified as “Net sales.” Additionally, 76 million yen presented in “Selling, general and administrative expenses” and 519 million yen of “Rental expenses” under “Non-operating expenses” have been reclassified as “Cost of sales.” Furthermore, 2,754 million yen presented in “Other” under “Investments and other assets” in the Consolidated Balance Sheets for the previous fiscal year has been reclassified as “Buildings and structures” of 3,928 million yen, “Buildings and structures (Accumulated depreciation)” of (1,200) million yen, “Other” of 169 million yen, and “Other (Accumulated depreciation)” of (143) million yen under “Property, plant and equipment.” In addition, 152 million yen presented in “Other” under “Cash flows from operating activities” in the Consolidated Statements of Cash Flows for the previous fiscal year has been reclassified as “Depreciation and amortization.” “Asset retirement obligations” included in “Other” under “Non-current liabilities” in the Consolidated Balance Sheets for the previous fiscal year has been presented independently from the fiscal year under review due to its increased monetary materiality. Consolidated Balance Sheets for the previous fiscal year have been reclassified to reflect this change in the presentation method. As a result, 4,471 million yen presented in “Other” under “Non-current liabilities” in the Consolidated Balance Sheets for the previous fiscal year has been reclassified as “Asset retirement obligations” of 1,661 million yen and “Other” of 2,809 million yen under “Non-current liabilities.” “Non-deductible consumption taxes” included in “Other” under “Non-operating expenses” for the previous fiscal year has been presented independently from the fiscal year under review due to its increased monetary materiality. In addition, “Loss on disposal of non-current assets,” which was presented independently under “Extraordinary losses” for the previous fiscal year, has been included in “Other” under “Extraordinary losses” from the fiscal year under review due to its decreased monetary materiality. Consolidated Financial Statements for the previous fiscal year have been reclassified to reflect these changes in the presentation method. As a result, 632 million yen presented in “Other” under “Non-operating expenses” in the Consolidated Statements of Income for the previous fiscal year has been reclassified as “Non-deductible consumption taxes” of 166 million yen and “Other” of 466 million yen under “Non-operating expenses.” In addition, 281 million yen presented in “Loss on disposal of non-current assets” and 614 million yen presented in “Other” under “Extraordinary losses” have been reclassified as “Other” of 896 million yen under “Extraordinary losses.” (Notes to Consolidated Statements of Income) In response to the requests from governments and municipalities in relation to COVID-19, many of the stores 21 located in retail facilities, directly-managed stores, resort facilities, and other locations were temporarily closed in regions including Japan, North America, and Europe. Fixed expenses (including personnel expenses, depreciation, and rent expenses) on stores and resort facilities incurred during the periods of closure were recognized as “Extraordinary loss due to closing and other” in “Extraordinary losses.” (Notes to Consolidated Statements of Comprehensive Income) * Notes regarding reclassification adjustments and tax effects relating to other comprehensive income For the fiscal yearended February 28, 2021For the fiscal yearended February 28, 2022(Million yen)Valuation difference on available-for-sale securities: Amount arising during period Reclassification adjustment for gain and loss Amount before income tax effect Income tax effect Valuation difference on available-for-sale securitiesDeferred gains or losses on hedges: Amount arising during period Reclassification adjustment for gain and loss Amount before income tax effect Income tax effect Deferred gains or losses on hedges Revaluation reserve for land: Income tax effect Revaluation reserve for land Foreign currency translation adjustment: Amount arising during period Reclassification adjustment for gain and loss Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax: Amount arising during period Reclassification adjustment for gain and loss Amount before income tax effect Income tax effect Remeasurements of defined benefit plans, net of taxTotal other comprehensive income 1,120 1,652 2,773 (131) 2,642 22 (32) (9) 2 (7) 1,064 1,064 (1,008) (72) (1,081) (66) 98 31 (13) 17 2,635 506 (106) 399 (107) 292 1 (22) (20) 7 (13) 1,042 1,042 1,277 92 1,370 396 23 419 (146) 272 2,963 22 (Notes to Consolidated Statements of Changes in Equity) For the fiscal year ended February 28, 2021 1. Notes regarding issued shares Class of shares Number of shares at beginning of periodOrdinary shares (Shares)157,921,669−−157,921,669Increase Decrease Number of shares at end of period 2. Notes regarding treasury shares Class of shares Number of shares at beginning of periodIncrease Decrease Number of shares at end of period Ordinary shares (Shares)22,901,4451,178580,50022,322,123(Outline of reasons for changes) Major component of the increase are as follows. Increase due to the purchase of shares less than one unit: 1,178 shares Major component of the decrease are as follows. Decrease due to the exercise of stock options: 580,500 shares Number of underlying shares (Shares) At beginning of periodIncrease Decrease At end of period −−−−−−−−Balance at end of period (Million yen) 1381383. Notes regarding share acquisition rights Company name BreakdownClass of underlying shares Reporting company −Share acquisition rights as stock optionsTotal 4. Notes regarding dividends (1) Cash dividends paid May 28, 2020 Annual General Meeting of Shareholders Ordinary shares fiscal year Resolution May 27, 2021 Annual General Meeting of Shareholders Class of shares Ordinary shares Resolution Class of sharesRecord date Effective date Total cash dividends (Million yen)Dividend per share (Yen) 3,24024.00February 29, 2020 May 29, 2020 (2) Dividends for which the record date falls in the fiscal year under review, but the effective date falls in the following Total cashdividends (Million yen)Source of dividends Dividend per share (Yen)Record date Effective date 1,627Retained earnings 12.00February 28, 2021 May 28, 2021 23 For the fiscal year ended February 28, 2022 1. Notes regarding issued shares Class of shares Number of shares at beginning of periodOrdinary shares (Shares)157,921,669−−Increase Decrease Number of shares at end of period 157,921,6692. Notes regarding treasury shares Class of shares Number of shares at beginning of periodIncrease Decrease Number of shares at end of period Ordinary shares (Shares)22,322,12394835,30022,287,771(Outline of reasons for changes) Increase due to the purchase of shares less than one unit: 948 shares Major component of the increase are as follows. Major component of the decrease are as follows. Decrease due to the exercise of stock options: 35,300 shares Number of underlying shares (Shares) At beginning of periodIncrease Decrease At end of period −−−−−−−−Balance at end of period (Million yen) 1221223. Notes regarding share acquisition rights Company name BreakdownClass of underlying shares Reporting company −Share acquisition rights as stock optionsTotal 4. Notes regarding dividends (1) Cash dividends paid May 27, 2021 Annual General Meeting of Shareholders Ordinary shares fiscal year Resolution May 26, 2022 Annual General Meeting of Shareholders Class of shares Ordinary shares Resolution Class of sharesRecord date Effective date Total cash dividends (Million yen)Dividend per share (Yen) 1,62712.00February 28, 2021 May 28, 2021 (2) Dividends for which the record date falls in the fiscal year under review, but the effective date falls in the following Total cashdividends (Million yen)Source of dividend Dividend per share (Yen)Record date Effective date 1,627Retained earnings 12.00February 28, 2022 May 27, 2022 24 (Notes to Consolidated Statements of Cash Flows) Sheets is as follows. * Reconciliation of ending balance of cash and cash equivalents with account balances per Consolidated Balance For the fiscal year ended February 28, 2021 For the fiscal year ended February 28, 2022 (Million yen)Cash and deposits Time deposits with maturities of more than three months Cash and cash equivalents 21,301 (31) 21,270 15,209 (10) 15,199 25 (Segment information, etc.) [Segment information] 1. Summary of reportable segments The Group’s reportable segments are components for which separate financial information is available and regular evaluation by the Board of Directors is performed to decide how management resources are allocated and to assess performance. The Group engages in the apparel business (planning, production, and sale of textile products, including men’s and women’s clothing) and the lifestyle business in Japan and overseas. The reportable segments of the Group comprise the “Apparel Business,” which is divided geographically into two categories, “Domestic” and “Overseas,” and the “Lifestyle Business.” The “Apparel Business (Domestic)” operates the apparel business in Japan; the “Apparel Business (Overseas)” operates the apparel business overseas. The “Lifestyle Business” operates businesses including a cosmetic business, a wellness business related to ballet and dance and resorts, a pet supply and other business, a business related to gifts, and a real estate leasing business. 2. Method of calculating net sales, profit or loss, assets, liabilities, and other items by reportable segment Accounting methods for reportable segments are mostly the same as the accounting methods described in “Significant accounting polici