Our Group Initiatives

for the Fiscal Year Ending March 31, 2024

May 19, 2023

Wacoal Holdings Corp.

1

Hello, everyone. My name is Yajima, and I have been appointed President of Wacoal Holdings Corporation, succeeding President Yasuhara. Thank you in advance for your cooperation.

I will now explain the Wacoal Group's initiatives for the fiscal year ending March 31, 2024. As Miyagi mentioned earlier in his explanation, the previous fiscal year was a difficult one for us due to sluggish performance in Japan, China, and the United States.

In addition, a large impairment loss was recorded in the US business, resulting in the posting of a final loss for the first time since the Company's founding.

We take very seriously the concerns we have caused our shareholders and other stakeholders.

We are already working to rebuild the management of the Company, and we hope to improve the Company by promoting reforms without being bound by past ties.

Wacoal Holdings Mission

*Reiteration from June 3, 2022 Mid-term Management Plan Summary

Mission

Founding Principles

WACOAL empowers people with the confidence that comes

from looking and feeling their best.

As a global leader, we welcome everyone into our caring community built on mutual respect, diversity, and inclusion.

Our Culture

Our Promise

Our Values

We, the employees and

We will contribute to society by

Create products loved by customers

management of WACOAL, will

helping women to express their

Develop new products that meet the needs of

maintain a refined corporate

beauty.

the times

culture based on mutual trust and

Conduct business in a fair manner with a

will continually strive to make the

forward focus

Company a global leader in the

Build a better Wacoal through better human

industry.

resources

Fear not failure and boast not of success

2

This page contains our management philosophy. Our mission is to provide products and services that are closest to the bodies and minds of our customers, and to achieve growth. To fulfill this mission, we are committed to reform with determination.

What We Aim For in VISION 2030

*Reiteration from June 3, 2022 Mid-term Management Plan Summary

Evolve and grow into the global Wacoal Group by utilizing our elevated minds and quality through beautifying and enriching each individual's body

Medium- to Long-term

Management Strategy Framework

VISION 2030

Management Strategies

Materialities (Material Issues)

Behavioral Guidelines for Executives and Employees

Achieve global growth

Create

Provide greater value / Expand our business areas

Expectations

Create a culture where diverse human resources

can play active roles

×

Have an operating margin and ROE around 10%

Respond to

Solve materialities (material issues)

Requests

(Strengthen responses to environmental and

social issues)

×

Continuously improve the executive compensation

Commitment

system

Optimize the Board of Directors' member structure

Optimize the capital structure

3

3

Next, I would like to briefly explain our medium- to long-term management strategy frame, VISION 2030, which we announced last June. VISION 2030 sets forth the Group's commitment to achieving global growth, evolving the value it provides, and expanding its business domains, as well as its goal of achieving a 10% ROE level, in order to enhance its corporate value.

In addition, to enhance the effectiveness of our management strategy, we will work to continuously improve the executive compensation system, optimize the composition of the Board of Directors, and optimize the capital structure.

VISION 2030 Management Strategies *Reiteration from June 3, 2022 Mid-term Management Plan Summary

Create New Value from an Innovative Perspective and Achieve Sustainable Growth

VISION 2030

Management Strategies

Improve domestic

profitability and expand

our business areas

Expand overseas businesses

and transform them into

Promote high-revenue structures

Sustainability

Management

Strengthen the Group's management capabilities

Shift to more capital efficient management

4

Business areas (Categories to strengthen moving forward)

"Beauty" "Comfort" "Health"

We will cultivate and expand the beauty, comfort, and health areas with new

products and services backed by our elevated minds and quality

Here is a summary of the management strategy in VISION 2030.

Under VISION 2030, the Company has designated beauty, comfort, and health as its focused business domains, and has announced that it will work to improve profitability and expand its business domain in Japan, expand its overseas business and transform itself into a highly profitable structure, strengthen group management capabilities, and shift to more capital-efficient management.

We do not believe that we have made any progress in these efforts in the last fiscal year, and we intend to reflect carefully and gear up for change.

Review of the first year of the medium-term plan (FY2023-FY2025)

  • The strategy's effectiveness has not improved both in Japan and overseas, and our performance is significantly lower than the initial plan. The gap with the target for the final year of the medium-term management plan is widening

billions of yen

Japan

Overseas

205.0

205.0

220.0

188.6

172.1

Overseas Business

70.1

vs initial plan

vs FY2023

73.5

86.8

+13.3

-3.4

66.7

6.8

59.2

-5%)

(+10%)

Revenue

112.9

134.9

vs initial plan

121.9

vs FY2023

131.5

Domestic business

133.2

-13.0

9.6

+1.7

-10%)

(+8%)

FY2022

FY2023 initial plan

FY2023 results

FY2024 plan

FY2025 plan

16.0

6.2

7.0

Overseas Business

事業

6.0

+2.7

vs initial plan

Business

2.4

4.1

利益

0.7

vs FY2023

9.8

profit

(+28%)

0.4

3.5

Domestic business

0.5

4.6

3.1

vs initial plan

(+13%)

2.5

+7.3

1.8

-3.6

1.0

vs FY2023

-1.3

-78%)

1.5

(+144%)

FY2022

FY2023 initial plan

FY2023 results

FY2024 plan

FY2025 plan

5

From here, we will look back on the first year of the medium-term management plan. The first is performance.

The figures indicated by the yellow arrows are the sales revenue and business profit for the fiscal year ended March 31, 2023. To the left of that is the figure that was initially posted.

The prolonged infection, sluggish growth in the number of customers visiting our stores after the deregulation of regulations, and suppliers' restraints on purchases resulted in a substantial shortfall from the initial plan.

Also, to the right is the business plan for the fiscal year ending March 31, 2024. While revenue is assumed to be JPY205 billion, the same level as the previous year's plan, business profit is assumed to be JPY6 billion, lower than the previous year's plan, taking into account the unstable business environment.

As a result, the gap between the target figures and those we are aiming for in the fiscal year ending March 31, 2025, the final year of the medium-term management plan, is widening.

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Disclaimer

Wacoal Holdings Corporation published this content on 27 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 June 2023 10:23:07 UTC.