[Speaker]

Akira Miyagi
Director and Managing Corporate Officer in charge of Group FinanceMiyagi: Hello, everyone. I am Akira Miyagi, Director and Managing Corporate Officer of Wacoal Holdings Corp.
Thank you very much for watching our business results presentation video.
I will now explain Wacoal Holdings' Financial Results for Q3 of the Fiscal Year Ending March 31, 2021.

Please see page two.
As announced on October 30, 2020, the Company has changed its reportable segments in Q1 and Q2. The
figures in this presentation including those of the previous fiscal year have been changed to reflect the new
segment classifications.

1Please see page three.
The following is a summary of the business results for the three months ended December 31, 2020.
Net sales totaled JPY41.7 billion. Amid the lingering effects of the infectious disease worldwide, sales inOverseas and Other Businesses declined, but sales increased in the Domestic Business, which saw a reversalof the decline in demand after the previous year's consumption tax hike, and in the PEACH JOHN Business,where sales were strong mainly through the Company's own EC site.
As a result, the Group as a whole recovered to the same level as in the same period of the previous fiscal year,with a 2% decrease in sales compared to the same period of the previous fiscal year.
Operating income totaled JPY2.7 billion. In addition to minimizing the decrease in net sales at 2%, improved
profit margins and cost reductions by each company contributed to a JPY2.4 billion increase in profit
compared to the same period last year. Both net sales and operating income were significantly higher than
the revised plan.

2Please see page four.
The table shows net sales and operating income of the business segments and major subsidiaries.
In the Domestic Business, sales increased as a result of the reversal of the decline in demand after the
consumption tax hike in the previous year, as well as the high level of our own EC and strong sales at massretailers. Operating income increased significantly as a result of continued efforts to reduce SG&A expenses.
In the Overseas Business, the US Business saw an increase in revenue mainly due to the growth of Intimates
Online, which was acquired last year, and the China Business maintained the same level as the previous year.
However, the European Business was sluggish due to the impact of lockdowns in the UK and other countries,
and overall sales in the Overseas Business declined. On the other hand, operating income increased by JPY0.6
billion compared to the same period of the previous year as a result of cost reduction and taking advantage
of government support measures in various countries, thus securing profitability.
In the PEACH JOHN Business, both sales and profits increased as product planning that captures the needs ofconsumers and sales promotion measures were successful, and both EC and store sales remained strong.
Other Businesses continued to struggle with the effects of the infectious disease, but the deficit has been
reduced due to cost cutting.

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Please see page five.
The table summarizes the changes in the EC sales composition ratio in Q3 for the five major operatingcompanies, Wacoal Japan, PEACH JOHN, the US, Europe, and China.
The Wacoal Group has been focusing on strengthening its own EC. The impact of the spread of the infectious
disease has resulted in significant changes in consumer behavior, and these efforts are having an effect.
In Q3 of the current fiscal year, the total EC sales of our major operating companies grew significantly,
increasing by 27% compared to the same period last year. As a result, we were able to achieve a 3% level ofgrowth, offsetting the decline in store sales. In addition, we were able to increase the EC ratio to 26% of sales.
Even if the spread of infectious disease is contained in the future, sales at brick-and-mortar stores may not
return to the level before the spread of the disease because of a decrease in opportunities to go out due tothe spread of telework and other factors. In order to maintain and grow sales in any environment, we willfurther promote the ongoing collaboration between online and offline and respond to changes in customer
behavior.

4Please see page six.
Next, let's take a look at the changes in the channel composition ratio for over-the-counter sales at Wacoal
Corp. in Q3.
The pie chart here is calculated only for clients for whom we can obtain sales figures on an over-the-countersales basis. In particular, in the mass retailer channels, there are some clients for whom we cannot obtainover-the-counter sales figures, so please understand that these figures may differ from actual figures.
While brick-and-mortar store sales declined by about 6%, EC sales grew by more than 30% compared to thesame period of the previous fiscal year, and the combined total was able to maintain the same level as theprevious year. In addition, the ratio of EC to total sales has increased by six percentage points in one year to22%.
The above is the report for Q3 of the current fiscal year.

5Let's move on to page seven.
Next, I would like to report on our business results for the first three quarters of the current fiscal year.
Net sales totaled JPY114.9 billion. Sales decreased by 20% compared to the same period of the previous fiscal
year due to a significant decrease in sales in H1.
On the other hand, PEACH JOHN achieved strong growth thanks to the success of product planning that
captured consumer needs and high-profile marketing activities.
Operating income totaled JPY4 billion. Although the decline in sales resulted in a significant decrease in profit
compared to the same period of the previous year, we were able to secure a profit as a result of efforts byeach company to reduce costs and the use of employment adjustment subsidies and other government
support measures in various countries.
Quarterly net income before taxes was JPY10.9 billion, due to a JPY5.7 billion gain on valuation of investment
in securities.

6Please see page eight.
Since we use US GAAP, government support related to infectious diseases, such as employment adjustment
subsidies, is reversed to SG&A expenses or costs. In Europe and the US, the government's furlough system isbeing used, and the reduction in labor costs resulting from the use of the system is also a one-time factor
boosting profits.
This page summarizes operating income in real terms, excluding those one-time factors. Operating income
for Q3 was JPY4 billion, but there was a total of about JPY4.4 billion in one-time effects that boosted profits.
Operating income or loss in real terms after deducting these effects was a loss of JPY400 million.

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Please see page nine.
Next, I will explain the progress of cost reduction in the first three quarters of the current fiscal year.
As I mentioned earlier, the results for the current fiscal year include subsidies and other one-time profit
boosting factors, and the results for the previous fiscal year also include one-time expenses for M&A. After
deducting these effects, the total cost reduction in real terms was JPY7.8 billion.
The quarterly cost reduction in real terms was JPY3.7 billion in Q1, JPY2.1 billion in Q2, and JPY2 billion in Q3.
As we explained at the time of the announcement of the financial results for Q2, we expect that about JPY1
billion of the JPY2 billion reduction in each quarter will continue to improve in the next fiscal year and beyond.

8Please see page 10.
The table summarizes the factors behind the increase and decrease in net sales from the same period of theprevious year in a waterfall chart.
Net sales decreased by JPY29.1 billion from the same period of the previous fiscal year. As indicated by theseries of red boxes, all businesses except for the PEACH JOHN Business reported a decline in sales due to theimpact of store closures in many countries and regions in Q1.
Among other things, the domestic Wholesale Business experienced a significant decline in sales due to factors
such as the closure of stores, as well as weak customer traffic at department stores and other stores in urban
centers because of the spread of telework and voluntary restraint from going out, even after the resumptionof store operations.

9Please see page 11.
Next, I will explain in a waterfall chart the factors behind the increase and decrease in operating income fromthe same period of the previous fiscal year. Operating income decreased by JPY5.8 billion compared to thesame period of the previous fiscal year.
In addition to the contribution to profits from PEACH JOHN, which performed well mainly through its own EC,
cost reductions at Wacoal and the receipt of employment adjustment subsidies were the main factors behind
the increase.
However, this was not enough to compensate for the impact of the decline in sales at each company, resulting
in a significant decrease in profits.

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Please see page 12.
This waterfall chart shows the factors behind the increase and decrease in sales compared to the revised plan.
Net sales increased by JPY1.5 billion compared to the revised plan. Although the plan has been revised to be
more cautious amid the difficulty in forecasting the impact of the spread of the infectious disease, Wacoal
exceeded the revised plan due to the continued strong performance of its own EC and the solid performanceof mass retailers' channels.
In addition, Wacoal International and PEACH JOHN in the US also performed better than expected.

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Please see page 13.
This waterfall chart shows the factors behind the increase and decrease in operating income compared to therevised plan.
Wacoal exceeded its operating income plan, thanks to sales in the Wholesale Business exceeding the revisedplan, as well as improved sales margins and cost reductions.
In addition to continued efforts to reduce expenses at other group companies, we received about JPY400
million in employment adjustment subsidies that were not reflected in the plan, resulting in an excess of
JPY3.2 billion over the revised plan.

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Please see page 14.
The following is a summary of the first three quarters of the current fiscal year.

13Please see page 15.
The table shows net sales and operating income by segment.

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From the next page, we will review the business results for the first three quarters of the current fiscal year
by segment.
Please see page 16.
Domestic sales for the Wacoal Business for the first nine months of the current fiscal year totaled JPY66.9
billion. Sales decreased by 19% compared to the same period of the previous fiscal year due to the significant
drop in sales in H1 caused by the closure of stores due to the declaration of a state of emergency. In addition,
our own EC sales grew significantly, increasing by 63% compared to the same period of the previous fiscal
year.
Operating income totaled JPY3 billion. Due to the significant impact of the decline in sales in H1, income
decreased significantly by 58% compared to the same period of the previous fiscal year. However, thanks tothe progress in cost reduction and the use of employment adjustment subsidies, we were able to secure asurplus.
Both net sales and operating income exceeded the revised plan, mainly due to higher-than-expected
deliveries in the mass retailer’s channels.

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Please see page 17.
Overseas sales for the Wacoal Business totaled JPY29.8 billion. As in Japan, EC remained strong, but in someregions, such as Europe, the spread of the infectious disease became more serious, resulting in a 22% decreasein sales compared to the same period of the previous fiscal year.
In addition, Intimates Online, which was acquired last year, achieved high growth as the increase in new
customers through aggressive advertising contributed to sales growth.
Operating loss was JPY100 million. In addition to the decline in revenue, the Company continued to invest
aggressively in advertising for Intimates Online, which resulted in an operating loss. Both net sales andoperating income exceeded the revised plan.

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Please see page 18.
This section describes the PEACH JOHN Business and Other Businesses.
Net sales for the PEACH JOHN Business were JPY8.7 billion. Thanks to the contribution of product planningthat captures consumer needs and high-profile sales promotion measures, the Company's own EC maintained
high growth, and physical stores also performed well after the resumption of store operations, resulting in a
10% increase in sales compared to the same period of the previous fiscal year.
Operating income was JPY1.6 billion. In addition to the effect of increased sales, the withdrawal from
unprofitable stores and businesses in the previous fiscal year and the restraint on sales were successful,
resulting in a significant improvement in profitability.
Net sales in the Other segment were JPY9.5 billion. Sales decreased by 40% compared to the same period of
the previous fiscal year due to continued struggles as the business environment worsened for all companies
due to the impact of the infectious disease.
Operating loss was JPY0.6 billion. LECIEN was able to secure a profit thanks to its withdrawal from unprofitablebusinesses in the previous fiscal year, but NANASAI and Ai were unable to absorb the impact of the decline insales despite cost-cutting efforts, resulting in an operating loss.
PEACH JOHN's sales and operating income both exceeded the revised plan, and Other Businesses also
exceeded the plan for operating income due to cost reductions and other factors, despite lower sales.

17Please see page 19.
Next, I will explain our full-year forecast.
There are no changes to the full-year consolidated earnings forecast announced on October 30, 2020.
Although our business performance up to Q3 has exceeded the revised plan, in January, a state of emergency
was again declared in 11 prefectures in Japan, and the third lockdown measure was implemented in the UK,
currently further increasing uncertainty about the future.
In addition, as stated, over-the-counter sales in major countries as of mid-January were at a very low level
due to the impact of the emergency declaration and lockdown measures.
Based on the current sales trends, we have carefully organized our Q4 results and decided to maintain the
figures currently announced. In the event that we determine that it is necessary to revise our business forecast,
we will promptly disclose a new forecast.

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See page 20.
Risks that are not yet reflected in the current business forecast are described here.
There are many causes for concern, such as the situation of the spread of the infectious disease around theworld, and there are both upside and downside risks. We will promptly announce the impact on our businessperformance when there are important matters to be disclosed.

19Please see page 21.
I will explain our capital policy and shareholder return.
This is the basic capital policy in our current medium-term management plan, announced in June 2019. There
are no changes to the basic policy at this time, but we will consider revising the basic policy if there are further
significant changes in our business performance or funding needs due to prolonged pandemic.

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Please see page 22.
This chart shows the investment results for Q3 of the current fiscal year and the progress made toward theplan to sell cross-shareholdings during the current mid-term plan period. There were no significant
investments in Q3 of the current fiscal year.
As for the status of sales of cross-shareholdings during the current fiscal year, we completed the sale of four
issues totaling JPY900 million by Q3 of the current fiscal year, making 73% progress toward the sales target
set in the current medium-term management plan.
In Q4, we have already completed the sale of three issues totaling JPY1.3 billion as of January. Including thesales in January, the progress toward the target is about 80%. We will continue to make steady efforts toachieve our targets.
Please keep in mind that the sale amount I just explained is the book value as of the end of March 2019, which
differs from the actual sale amount.

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Please see page 23. This is the last page.
Here you can find the basic policy of our Group in light of the spread of the infectious disease. We will continue
our efforts to build a highly profitable management structure based on this policy.
As for the initiatives of individual companies, we will continue to proceed with them as announced at thefinancial results briefing on July 31.
That's all I have to say. Thank you for watching.

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