Wacoal : FY2023 Financial Results Presentation

Consolidated Financial Summary

of the Fiscal Year Ending

March 31, 2023

May 12, 2023

Wacoal Holdings Corp.

Changes From the Previous Year

• 1. Implementation of International Financial Reporting Standards (IFRS)
• IFRS has been applied on a voluntary basis from the beginning of FY2023 in order to provide more useful information and improve convenience
• "Business profit," calculated as revenue less cost of sales and selling, general and administrative expenses, is newly disclosed
• Fluctuation risk in net income is reduced as fluctuations in stock market value, except for some stocks, will no longer affect the profit and loss statement
• Results of all subsidiaries are disclosed as if the fiscal year ended in March as required by IFRS accounting standards where the fiscal years of all group companies must be unified
• The figures for the cumulative consolidated term of the previous year are also disclosed according to IFRS
• 1. The Impact of the Change in Revenue Recognition at Wacoal
• Sales of consumption transactions in department store, etc., were changed to an over-the-counter price basis in the period under review
• Because this change will increase sales revenue and SG&A expenses by the same amount, operating income will not be affected
• This change has boosted fiscal year sales revenue by approximately ¥5.4 billion (main factor of boost in sales revenue and
  SG&A expenses).

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1. FY2023 4Q financial Overview

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Executive Summary for FY2023 4Q Accounting Period (Jan-Mar)

Revenue increased but fell below the revised plan*1 due to struggles at Wacoal,

China, Intimates Online, Inc., and other companies

Revenue	Revenue at Major Subsidiaries（billion	previous year	vs FY2023	YoY	FY2023	vs FY2023
of yen）	Results	4Q Results	revised plan*1	revised plan
44.7 billion yen	Wacoal	19.4	20.6	1.2	21.5	-0.9
Wacoal International Corp. (U.S.)	6.0	6.5	0.5	6.8	-0.3
＜YoY＞ +¥2.6 billion（+6%）	Wacoal Europe Ltd.	4.4	5.2	0.8	5.5	-0.3
＜planning difference※＞ -¥1.4billion（-3%）	Wacoal China Co., Ltd.	2.8	3.0	0.2	3.2	-0.2
	Peach John Domestic only	3.1	2.9	-0.2	3.1	-0.2

Business Loss

-0.9 billion yen

＜YoY＞ +¥3.8 billion

＜planning difference※＞ +¥2.1 billion

Business losses occurred due to a slowdown in sales, and the revised plan*1 was surpassed

• While sales were weaker than expected, the impact of the partial revision of Wacoal's flexible retirement system*2 and the reversal of earnout obligations in the United States contributed to profits more than expected, and thus surpassed the revised plan

Business profit at Major Subsidiaries	previous year	vs FY2023	YoY	FY2023	vs FY2023
（billion of yen）	Results	4Q Results	revised plan*1	revised plan
Wacoal	-1.7	-1.4	0.3	-2.8	1.3
Wacoal International Corp. (U.S.)	0	0.1	0.1	-0.4	0.5
Wacoal Europe Ltd.	0.5	0.9	0.4	0.9	0
Wacoal China Co., Ltd.	-0.1	-0	0.1	0.2	-0.2
Peach John Domestic only	0.1	-0	-0.2	-0.1	0

*1 The planned figures are based on the document disclosed on February 10, 2023, "Notice Concerning Revision of Earnings Forecasts and Recording of Impairment Losses" *2 "Results of Special Operation of Flexible Retirement System and Revision of Flexible Retirement System" as of February 10, 2023

4 https://www.wacoalholdings.jp/ir/topics/files/wacoalholdingsnews20230210_2.pdf

FY2023 4Q(Jan-Mar): Business Conditions at Major Subsidiaries（Japan）

Wacoal 4Q sales trend	vs FY2022
	vs FY2020

Peach John 4Q sales trend

vs FY2022 vs FY2020

Note: The graph shows the monthly figures before the adjustments in settling accounts. （Including internal sales Excluding the impact of change in revenue recognition）

Note: The graph shows the monthly figures PJ (Japan) before the adjustments in settling accounts.（Including internal sales, Excluding receiving shipping charges）

	122
108
	99
	100
88	92

68

【Revenue】（） Excluding the impact of change in revenue recognition

➢ vs FY2022 4Q ＋6％（-1%） vs FY2020 4Q +0％（-6％）

【FY2023 4Q Topics】

• The desire to go out is recovering, but the number of customers visiting our stores is sluggish due to a growing desire to save money

Sales by channel(Japan)

department stores:+5％（vs FY2020 -3％） directly-managed stores:+7％（vs FY2020 -1％）

GMS, Supermarket:Wacoal -2％（vs FY2020 -18％） Wing +1％（vs FY2020 -13％） Own EC： Company's EC sales +8%（vs FY2020 +54%）

110		116
	98
		100
100	93
	91

【Revenue】 the performance of PJ (Japan), includes internal sales

➢ vs FY2022 4Q -5％ vs FY2020 4Q ＋8％

【FY2023 4Q Topics】

• The effect of marketing measures for in-housee-commerce was lower than expected, causing some struggles

Sales by channel（Japan）

Mail-order:-11％（vs FY2020 ＋5％）

Retail stores:+4％（vs FY2020 ＋10％）

Other EC :-14％（vs FY2020 ＋16％）

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