Wacoal : Consolidated Business Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

[Translation]

Consolidated Business Results for the Second Quarter of the Fiscal Year Ending March 31, 2023 [IFRS]

					November 11, 2022
Listed Company: Wacoal Holdings Corp.				Stock Exchange: Tokyo
Code Number: 3591	(URL:https://www.wacoalholdings.jp/)
Representative: (Position) Representative Director, President and CEO	(Name)	Hironobu Yasuhara
For Inquiries: (Position) Corporate Officer, Head of Corporate Planning Dept.	(Name)	Katsuya Hirooka
Scheduled quarterly report submission date:	November 14, 2022		Tel: [phone]
Scheduled dividend payment start date:	December 9, 2022
Supplementary materials regarding quarterly business results:	Yes
Explanatory meeting regarding quarterly business results:	Yes (for institutional investors, analysts and the press)

(Amounts less than 1 million yen have been rounded)

1. Second Quarter of the Fiscal Year Ending March 31, 2023 (April 1, 2022 - September 30, 2022)

1. Consolidated Business Results

				(% indicates increase (decrease) from the corresponding period of the previous fiscal year)
									Profit Before
				Business		Operating		Income Taxes and
	Revenue				Equity in Net	Profit
		Profit			Profit
							Profit of Affiliated
									Companies
	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%
Second Quarter
ended September	97,506	13.0	4,344	14.7	4,001 (13.3)	5,881	8.0	4,283	25.5
30, 2022
Second Quarter
ended September	86,286		-	3,787	-		4,617	-	5,444	-	3,412		-
30, 2021
	Net Profit		Total			Basic Earnings	Diluted Earnings
	Attributable to	Comprehensive
	per Share		per Share
	Owners of Parent	Income
	Millions of Yen	%	Millions of Yen	%	Yen		Yen
Second Quarter
ended September	4,201	22.3	11,412 210.4	68.91		68.62
30, 2022
Second Quarter
ended September	3,435		-	3,676	-		55.01		54.78
30, 2021

(Note) Business profit is calculated by subtracting cost of sales, and selling, general and administrative expenses from revenue.

1. Consolidated Financial Condition

			Equity Attributable to	Ratio of Equity
	Total Assets	Total Equity	Attributable to
	Owners of Parent
			Owners of Parent
	Millions of Yen	Millions of Yen	Millions of Yen	%
As of September 30, 2022	302,426	227,041	224,076	74.1
As of the end of Fiscal	299,177	220,868	217,990	72.9
Year (March 31, 2022)

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2.	Status of Dividends
							Annual Dividend
				End of First	End of Second	End of Third	Year-End		Total
				Quarter		Quarter	Quarter
				Yen		Yen	Yen	Yen		Yen
		Fiscal Year Ended March 31, 2022	-	20.00	-	30.00	50.00
		Fiscal Year Ending March 31, 2023	-	40.00
		Fiscal Year Ending March 31, 2023				-	40.00	80.00
		(Estimates)
		(Note)	Revision of estimated dividends announced		during the latest	quarter: No

3. Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(% indicates increase (decrease) from the previous fiscal year)

Profit Before

Net Profit

Income Taxes

Basic Earnings

Revenue

Business Profit

Operating Profit

and Equity in

Attributable to

Net Profit of

Owners of

per Share

Affiliated

Parent

Companies

Millions of Yen %

Millions of Yen %

Millions of Yen %

Millions of Yen %

Millions of Yen %

Yen

Annual

200,000

16.2

5,000

912.1

8,000

143.1

10,500

157.2

8,000

361.9

131.22

(Note)

Revision

of forecast of

consolidated business

results announced

during the latest

quarter:

Yes

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Notes

1. Changes in significant subsidiaries in the consolidated cumulative second quarter of the current fiscal year (i.e. changes in specified subsidiaries (tokutei kogaisha) which involve change in scope of consolidation): None
2. Changes in accounting principles and/or accounting estimates:
3. 1. Changes in accounting principles required by IFRS: None
   2. Changes in accounting principles other than (i) above: None
   3. Changes in accounting estimates: None
4. Number of Issued Shares (Common Stock)

		Second Quarter ended	Fiscal Year ended
		September 30, 2022	March 31, 2022
(i)	Number of issued shares (including
	treasury stock) as of the end of:	64,500,000 shares	65,589,042 shares
(ii)	Number of shares held as treasury
	stock as of the end of:	4,523,114 shares	4,130,773 shares
(iii)	Average number of shares during
	consolidated second quarter (second	60,965,308 shares	62,438,539 shares
	quarter ended September 30):

*These quarterly financial statements are exempt from the review procedures.

*Cautionary Statement regarding Forecast of Business Results

(Implementation of the International Financial Reporting Standards ("IFRS"))

Our group has implemented IFRS starting from the current consolidated fiscal year. The financial figures for the corresponding period of the previous fiscal year and the previous fiscal year are also presented in accordance with IFRS. For differences between IFRS and U.S. GAAP in the financial figures, please see "2. Condensed Quarterly Consolidated Financial Statements and Accompanying Notes - (5) Notes to Condensed Quarterly Consolidated Financial Statements (First-time adoption)" on page 18 of the attached materials.

(Cautionary note on forward-looking statements)

The forecast of business results is based on reasonable information we obtained as of the date hereof and, due to various risks, uncertainties and other factors arising in the future, actual results in the future may differ largely from the estimates set out in this document. For notes on conditions used for the forecast of business results and cautionary statements regarding forecast of business results, please see "1. Qualitative Information regarding Consolidated Performance during the Second Quarter - (3) Qualitative Information regarding Forecast of Consolidated Business Results" on page 9 of the attached materials.

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Table of Contents for Attached Materials
1.	Qualitative Information regarding Consolidated Performance during the Second Quarter	------------------- 5
(1)	Qualitative Information regarding Consolidated Business Results ----------------------------------------------	5
(2)	Qualitative Information regarding Consolidated Financial Condition ------------------------------------------	9
(3)	Qualitative Information regarding Forecast of Consolidated Business Results -------------------------------	9
2.	Condensed Quarterly Consolidated Financial Statements and Accompanying Notes ------------------------	10
(1)	Condensed Quarterly Statement of Financial Position -----------------------------------------------------------	10

1. Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated

	Statement of Comprehensive Income ------------------------------------------------------------------------------	12
(3)	Condensed Quarterly Consolidated Statement of Changes in Equity ------------------------------------------	14
(4)	Condensed Quarterly Consolidated Statement of Cash Flows --------------------------------------------------	15
(5)	Notes to Condensed Quarterly Consolidated Financial Statements --------------------------------------------	16
	(Notes on Going Concern) -------------------------------------------------------------------------------------------	16
	(Segment Information) -----------------------------------------------------------------------------------------------	16
	(First-time Adoption) -------------------------------------------------------------------------------------------------	18

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1. Qualitative Information regarding Consolidated Performance during the Second Quarter

1. Qualitative Information regarding Consolidated Business Results
2. 1. Performance Overview of the Six Months ended September 30, 2022

				(Millions of Yen)
	Previous Consolidated	Current Consolidated	Increased/(Decreased) from
	Cumulative Second	Cumulative Second	previous consolidated
	Quarter	Quarter	cumulative
	(From April 1, 2021 to	(From April 1, 2022 to	second quarter
	September 30, 2021)	September 30, 2022)
	Amount	Amount	Amount		%
Revenue	86,286	97,506	+11,220		+13.0
Cost of sales	37,270	41,341	+4,071		+10.9
Gross profit	49,016	56,165	+7,149		+14.6
Selling, general and administrative expenses	45,229	51,821	+6,592		+14.6
Business profit	3,787	4,344	+557		+14.7
Other income	943	1,036	+93		+9.9
Other expenses	113	1,379	+1,266		-
Operating profit	4,617	4,001	(616)		(13.3)
Finance income	766	1,055	+289		+37.7
Finance expense	218	552	+334		+153.2
Share of profit of investments accounted for using	279	1,377	+1,098		+393.5
equity method
Profit before income taxes and equity in net profit of	5,444	5,881	+437		+8.0
affiliated companies
Net profit attributable to owners of parent	3,435	4,201	+766		+22.3

(Our group voluntarily implements the International Financial Reporting Standards ("IFRS") starting from the beginning of the current cumulative second quarter, and the results for the previous cumulative second quarter have been reclassified to conform to IFRS.)

During the current consolidated cumulative second quarter (April 1, 2022 - September 30, 2022), our group's domestic business environment continued to remain challenging as the number of customers visiting our retail stores still had a weak bounce back, despite relaxation of restrictions related to the coronavirus pandemic ("COVID-19"). The outlook is challenging due to price inflation of raw materials and energy as well as the recent rapid depreciation of the Japanese yen. Our business environment in the United States remained sluggish due to weaker consumer confidence as a result of the continuing inflation and higher interest rates to control such inflation. Our business in China also remained challenging due to the continuing implementation of strict COVID-19 restrictions. Our business in Europe, on the other hand, maintained its strong sales despite the continuing inflation. In addition, our business in other Asian countries showed signs of recovery as relaxation of COVID-19 restrictions took place and foot traffic increased.

Under such circumstances, our group is moving forward with our initiatives to address increasingly complex and diverse social issues as an opportunity for future growth, and to enhance our corporate value by promoting "sustainable management", a management approach that balances resolving social issues on one hand and sustainable growth on the other hand through our business activities, under the 'VISION 2030", our medium- to-long term strategy framework which we announced in June 2022. In addition, our new mid-term business plan for the next three years, which starts in the current fiscal year, is designed to lay the foundation to realize our new vision formulated under "VISION 2030", which is "to evolve and grow" as "Wacoal Group of the World" by providing both physical and emotional beauty and richness to individuals through high sensitivity and premium quality", and to promote initiatives for transforming into a highly profitable company capable of sustainable growth.

In our domestic business, we will continue promoting our unique CX strategy including the utilization of our customer database and merger between online and offline activities to improve value of our customer experience, and strengthening our efforts to improve profitability, aiming "to transform ourselves into a resilient corporate structure". In our overseas business, we will seek further expansion by expanding our e-commerce business and entering into the

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