Disclosure Policies

Basic Policy regarding IR Activities

UNITED ARROWS LTD.’s basic policy regarding investor relations (IR) activities places the utmost emphasis on the continuous and voluntary provision of candid and equitable information in a timely manner. In addition to enhancing management transparency through its IR activities, the Company will endeavor to improve the integrity of corporate management and enhance shareholder value by communicating appropriately with its shareholders and other investors.

Information Disclosure Criteria and Methods

UNITED ARROWS LTD. has classified information disclosure into three broad types. Details are presented briefly as follows.

1. Information requiring timely disclosure
This includes important information pertaining to the Company stipulated under the timely disclosure rules and regulations issued by the Tokyo Stock Exchange (TSE). UNITED ARROWS LTD. makes every effort to disclose details of all decisions made by the Company in a timely manner immediately following their ratification by the Board of Directors.

Further, matters that may significantly impact investment decisions, including revisions to projected business performance, are subject to more stringent internal criteria and voluntarily disclosed in accordance with internal rules and regulations.

2. Information subject to arbitrary disclosure
While not subject to the stipulations outlined under classification 1. above, this is information that is deemed to have an impact on the investment decisions of shareholders and other investors. In the case of UNITED ARROWS LTD., examples of information subject to arbitrary disclosure are presented briefly as follows:
- Monthly sales information (in principle, to be disclosed on the second business day of each following month)
- Personnel and organizational changes and other related information

3. Other information of a corporate communications nature
This includes promotional information relating to the Company's store, merchandise, and other activities.

After registration with the TSE's Timely Disclosure Network (TDnet), information requiring timely and/or arbitrary disclosure is posted on the Company's IR website. In addition, the Company’s e-mail magazine is sent to registered individuals, who also receive notifications of any information update via e-mail.

Comprehensive Communication

UNITED ARROWS LTD. proactively engages in comprehensive communication activities aimed at providing a deeper understanding of the Company. Among a host of available IR tools, UNITED ARROWS LTD. holds briefing sessions for investors.

IR Tools
- IR website (regularly updated)
- Integrated Report (issued once yearly)
- Presentation Material of Earnings Announcements (issued quarterly)
- Data Book (issued twice yearly)
- Other

Various IR Briefing Sessions
1. For institutional investors
- Earnings Announcements (held quarterly, including telephone conferencing)
- Small meetings (held around 10 times a year)
- One-on-one meetings (undertaken around 300 times a year)
- Tours of stores and facilities (irregular)
- Other

2. For the mass media
- Earnings Announcements (held quarterly)

3. For individual investors
- Various IR briefing sessions held by securities firms and IR support companies (irregular)

Please refer to the IR Calendar section for details regarding the timing of IR communication activities and the scheduling of IR briefing sessions.

Timely Information Disclosure Structure and Systems

1. Division responsible for timely disclosure
At UNITED ARROWS LTD., the president oversees the overall implementation and promotion of IR activities. Supporting the president, the director in charge of investor relations is responsible for handling the disclosure of information, and the IR Department is responsible for ensuring the timely disclosure of such information. Collaborating closely with related departments and divisions, steps are taken to identify pertinent information, to prepare all necessary documentation, and to ensure their timely disclosure.

In addition, the IR Department is responsible for addressing all inquiries from market-related parties including individuals and organizations with an interest in the market as well as shareholders and other investors.

2. Identification of information for timely disclosure
The officer responsible for handling the disclosure of information and the head of the IR Department attend in-house weekly, monthly, and all other important meetings. At these meetings, effort is made to gather information on the status of measures implemented by each division. In addition, the IR Department works to collect detailed information that is difficult to fully collate through meetings and other related forums by conducting hearings with relevant and related departments, divisions, and stores.

In the event that any incidence of information subject to timely disclosure is anticipated, the department or division that handles the subject information reports all details to the officer responsible for handling the disclosure of information and the head of the IR Department in a timely manner.

3. Preparation of timely information disclosure documentation and disclosure
The Finance and Accounting Department is responsible for preparing all documentation relating to UNITED ARROWS LTD.’s accounting-related disclosure materials. This includes the Company’s financial results and quarterly reports. Documentation relating to the Company’s shares and personnel transfers and assignments is prepared and handled by the General Affairs and Legal Department and the Human Resources Department, respectively. Ultimately final examination of the details of documentation is for the care of the officer responsible for handling the disclosure of information and the head of the IR Department, who ensure the information’s timely disclosure.

4. Management of timely disclosure information
UNITED ARROWS LTD. has put in place a set of rules and regulations governing the handling and storage of internal information. The utmost emphasis is placed on ensuring the confidentiality of information subject to timely disclosure. The officer responsible for handling the disclosure of information works diligently to prevent any leakage of insider information to external parties and to prevent any incidence of internal insider trading.

Timely information disclosure framework
Timely information disclosure framework

Pertinent Feedback on the Company’s IR Activities

Drawing from the inquiries, comments, and needs raised through dialog with shareholders and investors, the IR Department ensures that all relevant feedback is shared with the Company’s top executive in a timely manner. Making the most of interviews that are held on a monthly basis, the IR Department also conducts a quantitative analysis while ensuring that all relevant parties within the Company are made aware of inquiry items. The results of these initiatives are then reflected in business activities and operations.

UNITED ARROWS LTD. conducts a survey at the time of each earnings announcement. In addition to promptly providing the findings of each survey to all participants, results are shared with top executives and reflected in the Company’s management and IR activities.

As a part of its efforts to properly communicate with shareholders, UNITED ARROWS LTD. conducts an annual shareholder survey. After conducting a quantitative analysis of survey findings, results are shared with the Company’s top executive. In this manner, shareholder feedback is used to enhance a wide range of the Company’s endeavors including its management, business operations, and the return of profits to shareholders.

On top of the aforementioned information, the president and director in charge of investor relations take into consideration the opinions, concerns, and comments of shareholders and investors gained through face-to-face interviews. This information is incorporated into various communication tools including meetings as well as in-house newsletters and mails. Depending on the degree of importance, details are provided to top management or the Company as a whole. Through these means, every effort is being made to enhance the corporate value of the entire Company.

Constructive Dialog with Shareholders and Investors

1. Structures and systems designed to ensure constructive dialog
UNITED ARROWS LTD. recognizes that IR activities play an important role in the Company’s management. As indicated earlier in the section titled “Timely Information Disclosure Structure and Systems,” in-house rules and regulations stipulate that the president shall oversee the overall implementation and promotion of IR activities. In addition, the director in charge of administration is responsible for IR and ensures that every effort is made to enhance IR activities and to strictly control internal information while maintaining an organic link between financial and capital measures. The president and director in charge of IR attend earnings results briefings held quarterly to explain the medium-to-long-term direction of the Company together with the progress of management policies and key initiatives for each fiscal year while also holding Q&A sessions.

The Company established the IR Department under the direction of the director in charge of IR to enhance information disclosure as well as maintain systems to facilitate constructive dialog with shareholders and investors. Furthermore, the president and the director in charge of IR attend small meetings and individual interviews as needed in an effort to engage in constructive dialog with shareholders and investors. The Company aims to improve corporate value by providing feedback to management and throughout the Company about opinions, requests, and concerns received through IR activities depending on the degree of importance.

The IR Department takes steps to organically link with other departments to ensure that its actions are precise and appropriate. Over and above the identification of information for timely disclosure previously outlined, information is shared internally with all corporate departments encompassing the finance, accounting, legal, corporate planning, and other functions. At the same time, considerable emphasis is placed on ensuring that all departments are made fully aware of pertinent changes in the Company’s external environment. This includes trends in laws and regulations that impact business operations.

2. Means of communication
Serving as the principal point of contact for dialog with shareholders and investors, the IR Department adopts both a direct and indirect approach in the conduct of its IR activities. While channeling its direct activities mainly toward analysts and institutional investors, the Department also engages in indirect activities targeting, individual shareholders and investors as well as certain institutional investors.

As a part of its portfolio of direct IR activities, the Department holds roughly 300 individual interviews with analysts and investors each year. In addition to extending invitations to tour its stores and principal facilities, the IR Department conducts briefing sessions that cover a wide range of topics. For Group companies and businesses in which analysts and institutional investors express a particular interest, the relevant directors and officers in charge hold small meetings. The Marketing Department also conducts meeting and other events to provide an explanation regarding fashion trends.

Through these activities, every effort is made to increase the understating of those interested parties with whom UNITED ARROWS LTD. is able to engage in direct dialog about the Company’s management activities and business operations.

Turning to the Company’s indirect IR activities, the IR Department places considerable importance on upgrading and expanding the content of its website, various publications, and other communication tools.

The IR website contains a wealth of information. In addition to copies of such legal and timely disclosure documents as the Company’s financial results and securities reports, the website provides details of UNITED ARROWS LTD.’s Company Policy, business model, and Long-Term Vision as well as its shareholder return and other policies. Moreover, the website lists answers to frequently asked questions and a summary of initiatives that help investors, who are new to the Company, gain a reasonable understanding of its business activities and operations over a short period of time. For shareholders, investors, and interested parties, who are unable to attend the Company’s earnings announcement meetings, UNITED ARROWS LTD. posts copies of all relevant presentation materials, data books, videos of earnings announcements, and a summary of each earnings announcement meeting Q&A on its IR website at the earliest possible opportunity. In addition, the Company promptly posts details of Q&As held with analysts and institutional investors in connection with sales reports which are disclosed on the second business day of each month. In this manner, every effort is made to provide the same information to interested parties, who did not put forward an inquiry.

As far as the Company’s IR publications are concerned, UNITED ARROWS LTD. issues an Integrated Report each year. By providing an overview of the Company and details of its long- and short-term strategies as well as an insight into its value creation and other processes, this Integrated Report provides readers, who only have limited contact with the Company, a broad-brush outline, and readers, who are frequently in contact with the Company, a deeper understanding of its strategies and endeavors. Through the Company’s Shareholders’ Report (only in Japanese), which is issued on a six-monthly basis, UNITED ARROWS LTD. strives to provide individual investors with a look mainly into the Company’s initiatives on a timely basis.

3. Composition of shareholders
UNITED ARROWS LTD. works to substantively identify the composition of its shareholders by referring to the Company’s register of shareholders, report on large shareholders, and other publicly disclosed investor information. In addition, the Company gathers pertinent details through hearings and interviews with investors while drawing on other sources including the content and frequency of discussions. Moreover, UNITED ARROWS LTD. conducts research to identify beneficial shareholders as and when required. Based on this information, the Company works diligently to promote constructive dialog with its shareholders and investors. At the same time, steps are taken to promote active and independent IR and SR activities.

4. Improve capital efficiency
UNITED ARROWS LTD. places the utmost priority on securing sustainable growth while enhancing its business performance in a bid to fulfill its promise and to practice its five core values, identified as key components in the Company’s Policy Structure. The cash generated as a result of successfully enhancing the Company’s business performance is used to fund medium- to long-term investments and to further bolster capital policies including the payment of dividends and acquisition of treasury stock. By carrying out flexible financial and capital policies, UNITED ARROWS LTD. not only takes steps to support its operating activities, but also to increase the value of all stakeholders by improving capital efficiency.

Quiet Period

UNITED ARROWS LTD. has identified the period from the next day of each quarterly financial setting date to each quarterly financial results announcement as a so-called quite period. This initiative aims to prevent the leakage of financial results information and to ensure equity. During this period, the Company refrains from responding to financial results inquiries and from holding individual IR meetings. In the event, however, that an important incident arises during the quiet period that is subject to timely disclosure, the details are immediately announced in accordance with the timely information disclosure rules and regulations. UNITED ARROWS LTD. aims to disclose monthly sales information on the second business day of each following month. The Company accordingly refrains from commenting on sales data during any relevant applicable month in an effort to ensure the equity of information disclosure.

Precautionary Notes Regarding Statements with Respect to Future Forecasts

The business performance and financial results forecasts provided by UNITED ARROWS LTD. as well as statements that are not objective or of historical fact are based on assumptions and beliefs in light of information currently available to the Company's management. Accordingly, this information contains certain risks and uncertainties. With this in mind, readers are advised that actual results may differ materially from forecasts due to a variety of factors including changes in economic conditions within markets in which UNITED ARROWS LTD. operates, market trends, and fluctuations in foreign currency exchange rates.