Baroque Japan : 1st Quarter February 2022 Result Announcement

Slide 1

1. FY2022/02 First Quarter Result Overview
2. Business Highlights
3. FY2022/02 Outlook

COPYRIGHT © 2021 BAROQUE JAPAN LIMITED. ALL RIGHTS RESERVED.

• Consolidated Sales increased by 154.2% YoY, and OP and below also increased significantly.
• Since April, Japan domestic sales has been affected by store closures and shortened business hours, but sales and profits increased significantly YoY.
• Overseas business remains strong, mainly in China and the U.S, and contributes significantly to consolidated business results.

COPYRIGHT © 2021 BAROQUE JAPAN LIMITED. ALL RIGHTS RESERVED.

• The first quarter started off well by March's positive earnings, even after the impact of store closures and shortened business hours due to the reissue of the state of emergency, both sales and profits increased significantly in first quarter.
• EC Sales continued to remain strong and significantly grew 116.1% YoY.

Domestic Sales: ￥11.5 bil （last year: ￥7.01 bil 164.0％ YoY）

• While all stores were closed in May the previous year, the number of stores closed this year was 117 as of April 25, and the number of closed stores gradually decreased after May, and the impact on store sales has reduced compared to the previous year.
• Domestic Sales increased 164.0% YoY.
• During the store closure period, we actively implement EC measures such as live commerce, and the EC business grew significantly to 116.1% YoY. In-house EC sales 105.3％ YoY, 3rd-party EC sales 132.0％ YoY, both increased significantly.

Domestic GP: ￥7.39 bil （last year: ￥ 4.31 bil 171.3％ YoY）

• By strengthening product planning capabilities, monetization has improved, and by suppressing stocks and improving the product hit rate, it has improved significantly compared to the previous year.

Domestic SG&A: ￥6.79 bill （last year: ￥4.48 bil 151.5％ YoY）

• By efficient SG&A management, the ratio of SG&A expenses to Sales improved -4.8pt YoY

As a result, Domestic OP ￥0.6 bil (last year: ￥-0.16 bil ￥+0.76 bil YoY)

COPYRIGHT © 2021 BAROQUE JAPAN LIMITED. ALL RIGHTS RESERVED.

• Supported by strong personal consumption in China, the Chinese business grew significantly YoY, contributing to the consolidated business results.
• Personal consumption is on a recovery trend in the U.S as well, and the U.S business has become profitable. The Hong Kong business has not recovered due to the continued affect of Covid-19 epidemic.

China JV Sales: ￥1.65 bil （last year: ￥1.38 bil 119.5％ YoY）

• Chinese JV Sales increased 119.5% YoY. EC Sales has also grew 109.2% YoY.
• Royalties from Chinese retailers has increased significantly 162.1% YoY.
• The number of stores at the end of June became 291 stores, a net decrease of 8 stores compared to the end of the previous period (opened: 4 closed: 12). Although unprofitable stores were closed, the pace of store opening in China is aimed at net increase of about 20 stores a year.

China JV Profit: ￥0.18 bil （last year: ￥-0.31 bil ￥＋0.5 bil YoY）

• Although the impact of Covid-19 epidemic and the decrease in inventory valuation were heavy in the previous year, this term was profitable due to the recovery of the top line.

Other Overseas Business （U.S business, Hong Kong business, etc.）

• Personal consumption in the U.S is on a recovery trend, and demand for the main product of high-endmade-in-Japan denim were strong, and OP and net profit of the U.S business were profitable, and contributed to the consolidated business results.
• Regarding the Hong Kong business, the impact of restrictions on admission to commercial facilities, shortened business hours continues.

COPYRIGHT © 2021 BAROQUE JAPAN LIMITED. ALL RIGHTS RESERVED.