Fiscal Year Ended March 2009 First Quarter Earnings Announcement UNITED ARROWS LTD.

Transcription

1 Fiscal Year Ended March 2009 First Quarter Earnings Announcement UNITED ARROWS LTD. 1

2 Contents I. Overview of business results in 1Q II. Appendix III. Progress of important measures, etc. P3-P8 P9-P13P13 P14-P21 P21 *In this material, a fractional sum less than one million yen is rounded down and percentage is calculated from raw data. Cautionary statement Earnings forecasts and objective views contained in this document t are based on decisions made by UNITED ARROWS LTD. in light of information obtainable as of August 11, 2008, and therefore include risks and uncertainty. Actual earnings may differ materially from forecasts due to global economic trends, t market conditions, exchange rate fluctuations and other factors. Investors are asked to refrain from f making investment decisions based solely on this document. *Abbreviation of each business, structure of business are as below; Main business; Small Business Units s (SBU); UA Labs; Indication of business in this material UNITED ARROWS: UA, green label relaxing: GLR, CHROME HEARTS: CH Another Edition: AE, Jewel Changes : JC, Odette é Odile UNITED ARROWS: OEO, DRAWER: DRW, SOUNDS GOOD: SG, Cath Kidston: : CK TOKISHIRAZU: TSZ, Liquor,woman&tears: : LWT 2

3 I. Overview of business results in 1Q 1. P/L overview (consolidated/non-consolidated, consolidated, 3 months aggregate) Results were consolidated net sales 18,698 million (114.3% YoY), ordinary income 1,099 million (63.7% YoY) ) and quarterly net income 483 million (19.5% YoY) Gross profit was slightly below forecasts, but operating income and profit below operating income were in line with forecasts as SGA expenses were e cut (million yen) Consolidated results <cf> cf: Non-consolidated results <cf> FYE March Q Previous results FYE March Q Previous results Results +/- YoY Results +/- YoY Results Results vs sales YoY vs sales vs sales YoY vs sales Sales 18, % 2, % 16, % 17, % 2, % 15, % Gross Profit 10, % 1, % 9, % 9, % 1, % 8, % SGA Exp. 9, % 1, % 7, % 8, % 1, % 7, % Operating Inc. 1, % (588) 65.4% 1, % 1, % (521) 68.3% 1, % Non Op. P/L (12) -0.1% (37) % 1 0.0% (27) 5.0% % Ordinary Inc. 1, % (626) 63.7% 1, % 1, % (548) 67.2% 1, % Extraordinary P/L (114) -0.6% (2,646) 2, % (115) -0.6% (2,649) - 2, % Net Income % (1,991) 19.5% 2, % % (1,909) 23.1% 2, % 3

4 2. Sales overview (consolidated/non-consolidated, consolidated, 3 months aggregate) Non-consolidated sales was 17,954 million (114.6% YoY), 99.0% of forecast. Total Business Unit sales were 15,462 million, 94.8% of forecast. Same store sales were 92.0% YoY (3 months aggregate). FYE March Q (3 months aggregate) YoY +/- vs Forecast +/- Results YoY vs Forecast <cf> Previous 1Q (million yen) Forecast Consolidated Total Sales 18,698 2, % 16,354 Non-consolidated Total Sales 17,954 2, % (175) 99.0% 15,660 18,129 Total Business Unit Sales 15,462 1, % (844) 94.8% 14,164 16,307 UA 8, % (734) 91.9% 8,169 9,106 GLR 3, % % 2,950 3,470 CH % (29) 97.1% 798 1,013 SBU and UA Labs 2, % (190) 93.0% 2,245 2,717 Outlet 2, % % 1,496 1,822 Same store sales 92.0% 111.0% 96.7% UA 88.5% 112.0% 96.5% GLR 100.4% 105.0% 95.1% CH 104.1% 112.1% 107.1% SBU and UA Labs 88.3% 117.1% 95.8% 4

5 3. B/S overview as of June 30, 2008 (consolidated/non-consolidated) consolidated) Consolidated total assets were 44,176 million (115.6% YoY) ) and non-consolidated total assets were 43,501 million (115.8% YoY). *Consolidated B/S compared to previous 1Q Current assets: increase in inventories by 2.4 billion due to expansion of business Noncurrent assets: increase in tangible noncurrent assets by 1.9 billion due to store openings and store extensions, etc. and increase in guarantee deposits by 600 million Current liabilities: increase in short-term term loans payable (including current portion of bonds) by 7.2 billion, decrease in income taxes payable by 1.4 billion Noncurrent liabilities: decline in long-term loans payable by 2.7 billion * Short-term term and long-term term loans payable at term end: 10.9 billion (increase by 4.5 billion YoY) Consolidated results <cf> (million yen) (million yen) Non-consolidated results FYE March Q Previous 1Q FYE March Q Previous 1Q % of total +/- YoY % of total % of total +/- YoY % of total Results YoY Results Results YoY Results 100.0% 100.0% 100.0% 100.0% Total assets 44,176 5, % 38,203 43,501 5, % 37, % Current assets 26,858 3, % 23,789 25,094 2, % 22, % Noncurrent assets 17,317 2, % 14,414 18,406 3, % 15, % Current liabilities 21,452 6, % 15,421 20,632 5, % 14, % Noncurrent liabilities 93 (2,851) 3.2% 2, (2,851) 3.0% 2, % Total net assets 22,630 2, % 19,837 22,779 2, % 19,830 <cf> 62.3% 57.7% 59.5% 37.7% 7.7% 0.2% 7.8% 51.9% 42.3% 40.5% 40.4% 47.4% 39.4% 52.4% 52.8% 5

6 4. C/F overview (consolidated) C/F from operating activities: Net income before taxes: million (previous 1Q: billion (includes gains from sales of noncurrent assets: 2.5 billion). Increase/decrease of inventories: million (previous 1Q: million) Payment of income taxes etc.: billion (previous 1Q: million), etc. C/F from investment activities: Purchase of tangible noncurrent assets: 1.7 billion (previous 1Q: billion), etc. (There were proceeds from sale of noncurrent assets in the previous 1Q by 3.0 billion) C/F from financing activities: Increase/decrease in short-term term loans payable: billion, etc. Consolidated results (FYE March Q) +/- YoY Results (million yen) <cf> Previous 1Q Results Cash flows from operating activities (1,449) (732) (716) Cash flows from investment activities (2,126) (4,194) 2,067 Cash flows from financing activities 3,006 5,158 (2,151) Increase/decrease in cash and cash equivalents (569) 231 (800) Cash and cash equivalents at beginning of term 2, ,971 Cash and cash equivalents at end of term 2, ,170 6

7 5. Plans of store openings/closings (non-consolidated) FYE March 2009 expected store openings (non-consolidated) Store openings 21 Store closings 7 Stores at term end 141 * The timing of some store openings/ closings have changed between 1H and 2H, but there are no changes in number of store openings/closings expected by the term end. Store openings of subsidiaries FIGO 0 (11)* COEN 16 (16)* PERENNIAL 3 (3)* *Estimated number of stores at term end * UA Label Image Store are THE SOVEREIGN HOUSE (1 store) and District UNITED ARROWS (1 store). * Please refer to the news releases for the new stores of our subsidiaries. Number of new stores by retail business (Non-consolidated) Core UA New stores (est) 1H 2H Total UA Biz. Total B&Y Biz. GLR Biz. Total SBU and UA Labs GLR GLR GLR New Form CH S.B.U. and UA Labs Total SBU UA Labs Existing UA New UA UA Label Image Store Full term Another Edition Jewel Changes Odette é Odile DRAWER SOUNDS GOOD Cath Kidston TOKISHIRAZU Liquor,woman& tears Beginning of term Close End of term (est) Outlet stores of UA LTD

8 Details of store openings/transfer/extension for FYE March 2009 (confirmed projects only) Form Biz Business unit Outline Timing Store name Name of facility Space (m²) Opening day (est*) UA New UA new Apr SHIBUYA KOENDORI PARKWAY SQUARE 2 total space Apr-08 new Apr SAPPORO Sapporo Parco total space Apr-08 new Sep FUKUOKA Cath Kidston Selection SOLARIA PLAZA total space Sep-08 * New stores new Oct KASHIWA Kashiwa Takashimaya Station Mall (New) total space Oct-08 * new Oct UMEDA BREEZÉ BREEZÉ total space Oct-08 * B&Y new Apr SHIBUYA KOENDORI PARKWAY SQUARE 2 total space Apr-08 new Apr SAPPORO Sapporo Parco total space Apr-08 new May FUNABASHI LaLaport TOKYO-BAY South total space May-08 new Sep KASHIWA Kashiwa Takashimaya Station Mall (S) total space Sep-08 * new Oct UMEDA E-MA total space Oct-08 * new Oct KUMAMOTO n/a total space Oct-08 * new Nov OKAYAMA OKAYAMA ICHIBANGAI total space Nov-08 * GLR GLR new Nov nishinomiya gardens Hankyu Nishinomiya Gardens total space Nov-08 * Another Edition new Nov Umeda n/a total space Nov-08 * Jewel Changes new Oct Umeda BREEZÉ BREEZÉ total space Oct-08 * Odette é Odile new Apr roppongi hills ROPPONGI HILLS total space Apr-08 SBU new Jun sendai S-PAL II total space Jun-08 and new Oct umeda BREEZÉ BREEZÉ total space Oct-08 * UA Labs DRAWER new Apr MARUNOUCHI Roadside Store total space Apr-08 SOUNDS GODD new Aug SHIBUYA KOENDORI Roadside Store total space Aug-08 * Cath Kidston new Oct Osaka BREEZÉ BREEZÉ total space Oct-08 * Outlet new Apr IRUMA MITSUI OUTLET PARK Iruma total space Apr-08 Outlet new Jul NASU NASU GARDEN OUTLET total space Jul-08 new Oct SENDAI Sendai-Izumi Premium Outlets total space Oct-08 * new Nov KARUIZAWA KARUIZAW A PRINCE SHOPPING PLAZA total space Nov-08 * Exte ns ion CH CHROME HEARTS extension Apr CHROME HEARTS TOKYO Roadside Store total space Apr-08 Closure UA Existing UA transfer Apr SAPPORO 4chome Plaza - 6-Apr-08 transfer Jul KASHIWA Kashiwa Takashimaya Station Mall - 8-Jul-08 transfer Aug UMEDA E-MA - 17-Aug-08 * GLR ODONATA GLR removal Jul Daimaru Umeda DAIMARU UMEDA - 28-Jul-08 FACADE GREEN GLR removal Jul Daimaru Umeda DAIMARU UMEDA - 28-Jul-08 removal Jul Fukuoka Solaria Plaza SOLARIA PLAZA - 31-Jul-08 Renewal August: Odette é Odile sapporo September: THE SOVEREIGN HOUSE, green label relaxing sapporo, green label relaxing omiya 8

9 II. Appendix 1. Trend of inventories (non-consolidated) 2. Trend of gross margin (non-consolidated) 3. Details of SGA expenses (non-consolidated) 4. Progress of new subsidiaries 9

10 1. Trend of inventories (non-consolidated) Non-consolidated inventories in the 1Q were 16,913 million, 115.9% YoY. Increase compared to the previous term continues to be slowing down. Inventory as of FYE March 2009 will be around 110% to 115% YoY. Change in Inventories (product inventory + stored goods) (million yen) FYE March 2007 FYE March Q FYE March 2008 Interim FYE March Q FYE March 2008 FYE March Q Inventory at term end 13,846 14,589 17,730 18,242 16,563 16,913 YoY 129.5% 130.3% 129.0% 126.5% 119.6% 115.9% cf. Sales YoY 111.5% 123.5% 118.5% 119.1% 118.6% 114.6% Historical inventory and sales (YoY) 130.0% 129.5% 130.3% 129.0% 126.5% Inventory Sales 120.0% 110.0% 111.5% 123.5% FYE March 2007 FYE March Q FYE March 2008 Interim 119.6% 118.5% 119.1% 118.6% 115.9% 114.6% FYE March Q FYE March 2008 FYE March Q 10

11 2. Trend of gross margin (non-consolidated) Total company gross margin declined by 0.9 points YoY to 54.4%. Mainly due to increase of composition of outlet sales (9.6% to 13.9%) 1 Total business unit gross margin declined by 0.3 points YoY to 59.3% due to increase in mark down rate of shoes and bags, etc. at early bargain ain sales. Outlet gross margin improved by 4.7% to 22.6% as items of the current c spring/summer season sold well. Other cost improved by 87 million YoY as product valuation loss diminished as inventory declined. Change in Gross Margin FYE March Q Results Previous 1Q YoY Forecast YoY FYE March 2009 (est) Total Company 54.4% 55.3% -0.9% 51.9% 1.0% Total Business Units 59.3% 59.6% -0.3% 57.9% 0.9% Outlet 22.6% 17.8% 4.7% 15.2% -2.2% Other COGS (Mn yen) (37) 49 (87) 1,154 (118) *"Total Business Units" includes sales of retail, w holesale, mail-order and formal w ear rental, etc. *"Outlet" includes sales of outlet stores and special events. *"Other COGS" means product valuation loss and abolition loss, etc. 11

12 3. Details of SGA expenses (non-consolidated) SGA expense ratio in 1Q increased by 3.4 points YoY to 48.2% Reasons are mentioned below SGA expenses were lower than forecasts as nondurable goods, repairing expenses, advertisement cost were cut Details of SGA expenses (non-consolidated) (vs Sales) Current Previous 1Q 1Q YoY Total SGA expenses 48.2% 44.8% 3.4% Details Advertisement 2.0% 1.6% 0.4% Personnel 17.6% 15.8% 1.7% Rent 12.6% 11.7% 0.9% Increase in cost for members' card points (started from August 2007) Increase due to conversion of part-time workers to full-time workers (started from August 2007) Increase in fixed rent ratio for stores opened in the previous term to this term Depreciation 1.5% 1.1% 0.4% Increase due to store openings Others 14.5% 14.6% -0.1% 12

13 4. Progress of new subsidiaries Company name COEN CO., LTD. PERENNIAL UNITED ARROWS CO., LTD. Brand COEN FRANQUEENSENSE Store openings this term First store opening 16 stores (almost confirmed) This autumn 2 stores confirmed out of 3 stores to be opened this term Late August 1Q results (cost) Cost posted in 1Q was lower than forecast Cost posted in 1Q was lower than forecast Other * Sample products are gradually ready from July * Interior design of stores have been finalized * Recruitment of staff for stores to be opened this autumn are proceeding well * 2 stores were opened for a limited period in May and June at Roppongi and Isetan (department store in Shinjuku) and received acclaim from customers and store developers. * Preparation for first store to be opened in Aoyama area on August 29, 2008 is proceeding. 13

14 III. Progress of important measures, etc. 1. Summary of 1Q results 2. Progress of important measures Cf. Measures for businesses that have failed to reach sales forecast 14

15 Consolidated sales was 114.3% YoY.. Non-consolidated sales was 99.0% of forecast. Gross profit was slightly below forecast, but operating income and profit below operating income are in line with forecast as SGA expenses were cut. Growth of total company sales and same store sales (YoY,, non-consolidated) 130.0% 120.0% 110.0% 100.0% 90.0% 80.0% 123.5% 111.0% FYE March Q Total company sales Same store sales 113.6% 97.7% FYE March Q 120.1% 117.0% 99.6% 97.6% FYE March Q FYE March Q 114.6% 92.0% FYE March Q Summary of FYE March Q Consolidated net sales Non-consoldiated net sales results (in Bn) YoY vs forecast % % 99.0% Total Business Unit sales % 94.8% Outlet % 136.7% Consolidated gross profit Consolidated ordinary income Consolidated net income % % % 15

16 2. Progress in important measures Cf. Tasks for FYE March 2009 Develop core business (product and sales service) operations and ensure appropriate management Improve staff development and expand business in line with this growth 5 Important Tasks 1. Focusing on human resources, increase sales and profit of existing stores by strengthening cooperation between sales service section and merchandise section 2. Open stores according to growth of human resources 3. Complete merchandise platform (product planning platform) 4. Strengthen management of product quality 5. Improve productivity of head office Make exciting and attractive stores and improve profitability (ie.. this term s s profitability will be the lowest) 16

17 1. Focusing on human resources, increase sales and profit of existing stores by strengthening cooperation between sales service section and merchandise section 2. Open stores according to growth of human resources * Progress Opened new stores and strengthened existing stores according to growth of human resources Limited store openings during the term that are not in initial plan (currently, there are none), and promote strengthening of sales service fundamentals Improved sales and profit by clarifying and diminishing operations ons that are avoiding sales staff to concentrate on serving customers Started weekly business supervising meetings to evaluate and improve sales related operations throughout the company Improve HR system Started Sales Master System to make an environment so that shop staff can continue to work at stores until retirement Strengthened one on one OJT (on the job training) at stores by proceeding appropriate store openings * Future outlook Clarify operations that are avoiding sales staff to concentrate on serving customers, continue to improve HR system Reclassify brand value to develop optimal business portfolio, and a investigate possibilities of further store openings and growth 17

18 3. Complete merchandise platform (product planning platform) * Progress Inculcated Master Plan (careful product planning for each season) choose color, material, shelf placement, price, size from monthly merchandise strategy Created a system to make flexible amendments during the term UA (excluding Men s s dress section), GLR started planning and management using new product management format from Spring/Summer 2008 Started weekly management of final sales ratio at regular prices, etc. Weekly management of final sales ratio at regular or discount prices, p ratio of conversion into money, and ratio of inventory * Future outlook Improve accuracy of product planning and amendments during the term, and apply this to other businesses by the end of this term. Prepare to build a production platform to make appropriate material procurements and production systems from next term. 18

19 4. Strengthen management of product quality * Progress Strengthened product quality management by placing exclusive office fice to control product quality throughout the company Placed Quality Control Office within Merchandise Supporting Division ision from April Strengthen quality control of every business. Strengthened misprinting of product labels by improving product order system Start new system to avoid misprinting of materials, country of production and limit of usage (for cosmetics, etc.) on product labels Compliance through internal/external education Continue training for staff Continue to request cooperation to business partners and factories to strengthen quality control * Future outlook Continue education internally and externally and professionalize the Quality Control Office and strengthen staff. Proceed analysis of product risk and share information at business supervising meetings. 19

20 5. Improve productivity of head office * Progress Revised number of staff and personnel costs during the term revise promotion system without diminishing motivation of staff,, restrain number of staff in head office (control hiring of experienced staff) Cut head office cost (SGA expenses) Revise cost of business head office and back office, and reduce or cut cost where necessary Prepared to maximize customer satisfaction by replacing staff (move( former top sales staff that have been transferred to head office back to stores) Consider restructuring of organization and replacement of staff from customer perspective and total balance * Future outlook Continue to consider restructuring of organization and replacement ent of staff with the help of external consulting companies and proceed at the beginning of next term. Continue to reduce or cut head office cost during the 2H. 20

21 For reference: Measures for businesses that have failed to reach sales forecast *UA business (mainly dress section) Make weekly, monthly and seasonal product meetings and review reports. r Reconsider merchandise according to character of each store. Direct supervision on various operations from directors that were founding members of UA LTD. (product planning, sample examination, division management, etc.) Strengthen information sharing between stores and merchandise sections s (meetings and internal product presentations) Strengthen store operation. Abolish positions of supervisors and d sales service managers and transfer authority to store managers. Transfer members from head office to stores. Restructure business head offices (decrease number of departments, offices and sections) to make an organization that is easier to communicate. * SBU and UA Labs (Another Edition (AE) and Odette é Odile (OEO)) AE: Make secret research to specify stores that need to be improved, and strengthen sales service. Place exclusive staff from Merchandise Support Division to check product planning. OEO: Establish system to make additional orders of trend items during the term (cf. sales are improving from the end of 1Q). Analyze necessary merchandise of each store according to its character. 21

22 FYE March Q Earnings Announcement Additional Information 1. Term end B/S (consolidated/non-consolidated) consolidated) 2. Full term P/L (consolidated/non-consolidated) consolidated) 3. Full term SGA expenses (non-consolidated) 4. FYE March H&2H P/L forecast (consolidated/non-consolidated) consolidated) 5. Full term sales (consolidated/non-consolidated) consolidated) 6. FYE March H&2H sales forecast by business (non-consolidated) Same store sales by business (non-consolidated, YoY) 8. Full term store openings and CAPEX (non-consolidated) UNITED ARROWS LTD. 22

23 1. Term end B/S (consolidated/non-consolidated) consolidated) Consolidated B/S FYE March 2006 FYE March 2007 FYE March 2008 (million yen) Results composition Results composition +/- Results composition +/- Total Assets Current Assets Fixed Assets Current Liabilities Fixed Liabilities Total Net Assets 35, % 38, % 2,797 43, % 5,229 23, % 23, % , % 3,805 11, % 14, % 2,697 16, % 1,424 15, % 16, % 1,063 20, % 3,494 5, % 3, % (1,336) % (3,340) 14, % 17, % 3,070 22, % 5,075 Non-consolidated B/S FYE March 2006 FYE March 2007 FYE March 2008 (million yen) Results composition Results composition +/- Results composition +/- Total Assets Current Assets Fixed Assets Current Liabilities Fixed Liabilities Total Net Assets 34, % 37, % 2,839 42, % 5,244 22, % 22, % (116) 25, % 3,597 12, % 15, % 2,956 17, % 1,647 14, % 16, % 1,069 19, % 3,432 5, % 3, % (1,331) % (3,338) 14, % 17, % 3,101 22, % 5,151 23

24 2. Full term P/L (consolidated/non-consolidated) consolidated) 24

25 3. Full term SGA expenses (non-consolidated) FYE March 2007 FYE March 2008 FYE March 2009 (est) (million yen) vs Sales vs Sales YoY vs Sales Results Results +/- YoY Forecast +/- YoY YoY Total SGA Expenses 24,603 30,686 6,082 36,798 6,112 Advertisement 944 1, , Personnel 8,307 10,592 2,285 13,005 2,412 Rent 6,646 8,287 1,640 9,615 1,327 Depreciation , Others 8,069 9,768 1,698 11,355 1,587 Non-operating P/L (35) Non-operating profit Non-operating loss 41.9% 44.1% 124.7% 45.9% 119.9% 1.6% 1.7% 125.4% 1.9% 14.2% 15.2% 127.5% 16.2% 11.3% 11.9% 124.7% 12.0% 1.1% 1.2% 134.3% 1.6% 13.8% 14.0% 121.1% 14.2% 0.0% 0.1% - 0.1% 0.3% 0.4% 125.3% 0.2% 49.3% (125) 0.3% 0.2% 76.6% 0.1% 128.6% 122.8% 116.0% 152.2% 116.3% (44) 56 (89) 64.7% 38.5% 25

26 4. FYE March H&2H P/L forecast (consolidated/non-consolidated) consolidated) Consolidated P/L forecast Forecast (million yen) +/- YoY +/- YoY Forecast vs sales YoY vs sales YoY Total Sales 37, % 5, % 46, % 5, % Gross Profit 19, % 3, % 24, % 3, % SGA Exp. 18, % 3, % 20, % 3, % Operating Inc % (838) 45.0% 3, % % Non-operating P/L 2 0.0% (37) 7.3% 0 0.0% (46) 0.5% Ordinary Inc % (876) 44.0% 3, % % Extraordinary P/L % (2,108) 10.5% 5 0.0% 561 Net Income % (2,184) 1.8% 1, % % Non-consolidated P/L forecast Forecast FYE March H (est) FYE March H (est) FYE March H (est) FYE March H (est) (million yen) +/- YoY +/- YoY Forecast vs sales YoY vs sales YoY Total Sales 36, % 5, % 22, % (16,301) 58.3% Gross Profit 18, % 3, % 22, % 3, % SGA Exp. 17, % 3, % 18, % 2, % Operating Inc % (525) 63.5% 3, % % Non-operating P/L % (18) 62.1% % (17) 67.1% Ordinary Inc % (543) 63.4% 3, % % Extraordinary P/L (246) -0.7% (2,614) (5) 0.0% % Net Income % (1,848) 18.0% 2, % % 26

27 5. Full term sales (consolidated/non-consolidated) consolidated) Consolidated Total Sales Non-consolidated Total Sales FYE March 2007 results results FYE March /- YoY YoY (Mn yen) FYE March 2009 (est) forecast +/- YoY YoY 60,959 72,221 11, % 83,929 11, % 58,666 69,560 10, % 80,190 10, % Business Unit Total 53,781 62,173 8, % 71,653 9, % UA 32,071 35,118 3, % 39,292 4, % GLR 11,728 13,264 1, % 14,727 1, % CH 3,081 3, % 4,562 1, % SBU and UA Labs 6,900 10,479 3, % 13,071 2, % Outlet 4,885 7,387 2, % 8,537 1, % Same store sales 101.5% 101.1% 101.6% UA 102.0% 99.3% 100.2% GLR 97.8% 96.8% 101.9% CH 99.3% 112.7% 105.5% SBU and UA Labs 108.5% 111.8% 105.0% *Cath Kidston is included in S.B.U. from FYE March 2009 (previously included in UA business) and data of FYE March 2008 has been retroactively calculated. 27

28 6. FYE March H&2H sales forecast (non-consolidated) Forecast FYE March 2009 Full Term FYE March H (Mn yen) FYE March H +/- YoY 1H +/- YoY 2H +/- YoY YoY 1Q 2Q Forecast YoY Forecast YoY Total Sales 80,190 10, % 18,129 18,034 36,163 5, % 44,027 4, % Total Business Units 71,653 9, % 16,307 16,149 32,456 5, % 39,197 4, % UA 39,292 4, % 9,106 8,598 17,704 2, % 21,587 2, % GLR 14,727 1, % 3,470 3,209 6,680 1, % 8, % CH 4,562 1, % 1,013 1,208 2, % 2, % SBU and UA Labs 13,071 2, % 2,717 3,132 5,850 1, % 7,221 1, % Outlet 8,537 1, % 1,822 1,884 3, % 4, % Same Store Sales 101.6% 96.7% 104.7% 100.3% 102.6% UA 100.2% 96.5% 101.5% 98.8% 101.4% GLR 101.9% 95.1% 106.6% 99.9% 103.2% CH 105.5% 107.1% 115.9% 111.9% 98.9% SBU and UA Labs 105.0% 95.8% 108.4% 101.7% 107.4% * Forecast announced at the beginning of the term. Does not reflect t actual results of 1Q. 28

29 7. Same store sales by business (non-consolidated, YoY) UA FYE March 2008 FYE March 2009 FYE March 2009 by month 1Q 2Q 3Q 4Q 1Q April May June Same store sales 112.0% 97.4% 97.9% 92.7% 88.5% 88.1% 93.1% 84.1% Sales by category at existing stores Men's 104.9% 95.0% 95.2% 92.4% 88.2% 86.8% 93.3% 84.7% Women's 123.2% 98.3% 101.7% 93.2% 89.0% 91.7% 93.5% 81.9% CHROME HEARTS 118.4% 116.5% 106.9% 100.5% 79.1% 74.2% 75.7% 86.9% Miscellaneous 113.6% 105.7% 123.1% 121.3% 96.8% 82.2% 107.8% 101.6% Number of customers 107.9% 92.7% 94.3% 92.3% 88.7% 88.5% 95.1% 83.0% Ave. customer spending 103.8% 105.0% 103.8% 100.5% 99.7% 99.6% 97.9% 101.3% GLR FYE March 2008 FYE March 2009 FYE March 2009 by month 1Q 2Q 3Q 4Q 1Q April May June Same store sales 105.0% 89.3% 94.6% 98.4% 100.4% 98.5% 103.4% 99.5% Sales by category at existing stores Men's 104.6% 90.4% 99.0% 101.5% 96.0% 95.4% 99.2% 93.8% Women's 106.3% 89.0% 92.3% 97.0% 106.4% 103.4% 109.7% 106.0% Miscellaneous 102.3% 86.8% 83.1% 90.6% 97.1% 92.0% 96.8% 102.6% Number of customers 102.0% 90.4% 94.0% 101.7% 104.4% 101.6% 106.6% 104.6% Ave. customer spending 103.0% 98.8% 100.6% 96.7% 96.2% 97.0% 97.0% 95.0% 29

30 CH FYE March 2008 FYE March 2009 FYE March 2009 by month 1Q 2Q 3Q 4Q 1Q April May June Same store sales 112.1% 109.3% 110.5% 124.5% 104.1% 110.4% 107.6% 97.4% Number of customers 96.0% 94.5% 103.9% 107.9% 91.9% 97.7% 93.7% 86.9% Ave. customer spending 116.9% 115.7% 106.3% 115.5% 113.2% 112.9% 114.8% 112.1% *cf. Sales of CH including those sold at UA (YoY) Number of customers 114.0% 113.4% 112.7% 100.6% 114.5% 119.5% 113.4% 111.6% Ave. customer spending 113.5% 110.8% 109.6% 115.5% 96.9% 97.2% 98.8% 94.8% SBU and UA Labs FYE March 2008 FYE March 2009 FYE March 2009 by month 1Q 2Q 3Q 4Q 1Q April May June Same store sales 117.1% 107.1% 112.6% 110.6% 88.3% 87.9% 94.1% 83.5% Sales by category at existing stores Men's 140.0% 140.2% 116.7% 141.2% 81.7% 83.9% 87.0% 75.5% Women's 114.5% 104.3% 107.6% 103.5% 87.9% 88.2% 93.6% 82.7% Number of customers 119.8% 107.6% 122.9% 118.9% 86.9% 87.1% 94.6% 79.7% Ave. customer spending 97.7% 99.5% 91.6% 93.1% 101.7% 100.9% 99.4% 104.8% * Miscellaneous goods for SBU and UA Labs are not disclosed as the amount is small. 30

31 8. Full term store openings and CAPEX (non-consolidated) FYE March 2007 FYE March 2008 FYE March 2009 (est) Number of store openings, employees, etc. (/term end stores) Number of store openings / 141 UA / 44 GLR 6 9 1/ 37 CH 0 2 1/ 6 S.B.U. & UA Labs / 54 Removal (inc. brand transfer) Term end retail stores Outlet stores / 15 Term end employees 1,114 2,567 2,901 Term end part-timers 980 CAPEX and Depreciation Operating CAPEX 1,642 2,310 3,434 Land Others CAPEX Total 2,349 2,832 3,887 Guarantee Deposits Depreciation (as of P/L) ,300 * Part-time workers have been converted to full-time workers in August 2007, and are indicated together from FYE March * Total employees include full-time workers and contract workers (and part-time workers fro FYE March 2008) and do not include those who are sent to subsidiaries. * For FYE March 2009, Disney Loved By Nature for UA LaLaport Yokohama is counted as a closed store. * In guarantee deposits for FYE March 2008 ( 908 Mn), 259 million of guarantee deposits for store openings of FYE March 2009 are included. 31