Wacoal : Initiatives for the 2H of the FY2023

Wacoal Corp.'s

Initiatives for the 2H of the FY2023

Wacoal Holdings Corp.

Representative Director, President and CEO

Hironobu Yasuhara

1

Change of Representative Director of the Company and Representative Director of Major Subsidiary

Background of change in representative directors

• Tomoyasu Ito, President of Wacoal Corporation, has tendered his resignation as President of Wacoal Corporation and Vice President of Wacoal Holdings for personal reasons (resignation at the end of November 2022).
• Until the end of March 2023, Hironobu Yasuhara, President of Wacoal Holdings will also take the position of the President of Wacoal Corporation and manages domestic business.
• Wacoal will make a transition to a new structure from April 2023.

	Wacoal Holdings Corp.
	Representative Director, President and CEO
2	Hironobu Yasuhara

Implementing the Flexible Retirement Program to optimize the personnel structure.

Purpose of implementation of this system

• To speed up business structural reforms in order to improve the profitability of our domestic business.
• To optimize the personnel structure to match the scale of the business.
• To accelerate the transformation into a resilient organization that boldly takes on new challenges and delivers results quickly.
• • The impact of this system on business performance is scheduled to be disclosed in mid-February.

Company to target for implementation:

Target:

Expected Acceptance Number:

Offer Period (scheduled):

Date of Retirement:

Incentives:

Wacoal Corp.

permanent employees below the management level and

employees on indefinite-term contracts, who are at least 45 years of age

• permanent employees at management level who are at least 50 years of age）
  *Excluding sales staff

Approximately 250 employees

January 2023（schedule）

March 31, 2023

Special additional payment based

3

Review of 1H

Wacoal Corp.'s Priority Initiatives

	Progress of	Aim to improve LTV by improving the
	CX strategy	customer experience value and bringing
	online and offline together.
	Evolution of the	Implementation of an optimal marketing
	approach for each region and customer
	area sales system
		based on area information.
	Strengthening of	Integration of cooperative marketing
	marketing	capabilities to enable effective promotion
	that resonates with customers.
	Cost structural	Improving profitability by continuing structural
	reform	reforms of work style and manufacturing and
	pursuing cost-effectiveness.
	Withdrawal of	Decision making on withdrawal of
	unprofitable stores	stores, etc. through periodic inspection.

Evaluation at the end of 1H

• ⇧ Purchases by member customers proceeding due to

• strengthenedCXretention戦略marketingの推進.
• • Challenge: Purchases by non-members, including new members, were lower than expected.
  • Dysfunction of the area sales system, and delayed

• development CXof customer戦略のcontacts推進.
• • Delay in area analysis (population structure/ consumer characteristics, etc.)
  • Continuation of storefront-first mass marketing.
• ⇩ Delayed causeCX戦analysis略のand推進response to the marketing failure.
• • Started to optimize workforce for cost structural reforms. ▲ ⇩ Challenge:CXTransformation戦略の推to進P/L centered organization

  and response to rising cost of materials.

• ⇧ Discussions on addressing and dealing with

• unprofitable CXbusinesses戦略のhave推progressed進 . (Decide to continue in 2H)

➢ Efforts to resolve issues are slow, and the process from verification to improvement of each
	measure is not functioning properly.
➢ Lack of clarity in management and responsibility for each policy. HD supervision was also
Reflection	inadequate.
➢	We, both management and employees, have not yet eliminated the bad mindset of not
	wanting to change Wacoal.

4

Wacoal : Speed up the structural reform Initiatives for the 2H of this year

Priority measures for the 2H of this year

Speed up the structural reform	Pave the way back to growth	Selection of
successor

Specific initiatives

➢ Undertaking a fundamental review of our marketing activities: Restructuring of marketing structure and strategic cost allocation.

➢ Restructuring area strategy: Pursuit of human resource and investment efficiency, selection of growth areas and transfer of resources.

➢ Determining the P/L of existing stores and formulate a list of stores to be closed: Based on profit and loss plans and improvement measures.

➢ Strengthening Wacoal's EC: Review of storefront-first marketing strategy and strengthen measures to acquire new customers.

➢ Creating a workplace with high organizational vitality and psychological safety: Identifying and improving organizational issues.

➢ Formulation of the management structure for the next fiscal year: Selection of human resources capable of carrying on the future, optimization of personnel, and streamlining the

5 organization.