Wacoal Group Initiatives
for the Fiscal Year Ending March 31, 2025

May 25, 2024
Wacoal Holdings Corp.

1

Hello, everyone. I am Masaaki Yajima, Representative Director, President and CEO of
Wacoal Holdings Corp.
I will now explain our group's initiatives for the fiscal year ending March 31, 2025.
As the target figures and financial KPIs for the fiscal year ending March 31, 2025 weredisclosed in the financial results presentation disclosed on May 15, Mr. Kawanishi and I will
discuss the progress of the measures set forth in the revised medium-term management
plan and specific initiatives for the current fiscal year.

The WACOAL Way

WACOAL empowers people with the confidence that comesfrom looking and feeling their best.
As a global leader, we welcome everyone into our caring
community built on mutual respect, diversity, and inclusion.

MissionFounding
Principles＜Our Promise＞
We will contribute to society byhelping
women to express their beauty.

＜Our Culture＞
We, the employees and management of
WACOAL, will maintain a refinedcorporate culture based on mutual trust
and will continually strive to make theCompany a global leader in the industry.

＜Our Values＞
Create products loved by customers
Develop new products that meet the needs ofthe times
Conduct business in a fair manner with aforward focus
Build a better Wacoal through better humanresources
Fear not failure and boast not of success2

Please see page two.
This page shows the management philosophy of our group.
We recognize the need to quickly improve our profitability and capital efficiency, which are
our challenges, to realize the founding spirit that we have inherited over our more than70-year history and the social mission that our group should fulfill in today's society.

Review of FY2024➢ Both sales revenue and business profit differed from the revised business performance forecast amounts announced on November 9, 2023
➢ In order to steadily achieve the medium-term management plan (revised), we improved budget management and performance
management in the business model reform■Revenues (by segment)

Japan Business

Overseas Business

PJ・Other

Revised plan difference +1.8 (+106%) YoY -0.6 (-14%)

Revised plan difference -8.8 (-4%) YoY -1.4 (-1%)
205.0
Peach John 188.6
Other
25.1
businesses

Wacoalbusiness(Overseas)

27.9

196.0
26.2

(billions of yen)■Business profit

187.2
-1.0
25.2

73.5

66.7

72.8

-5.0
67.8

6.0
4.1

Wacoalbusiness(Japan)

96.7

103.7

97.0

＋1.8

-2.8

3.5

94.2

1.7
FY2023

FY2024FY2024FY2024

initial plan

revised plan

results

FY2023

FY2024FY2024FY2024

initial plan

revised plan

results

3

Page three, please.
First is a review of the previous term. Both sales revenue and business profit fell far shortof the initial plan. In addition, in response to the revised earnings forecast announced in
November last year, sales fell short of the revised figure while business profit rose sharply,
leaving the Company to face challenges in terms of budget and performance management.
When I announced the revised medium-term management plan, I explained that I had
decided that if we did not change our business model and corporate culture now, there
would be no future for us, and once again, I strongly feel the necessity and importance ofchange.
We have also decided to introduce ROIC management to improve capital efficiency andachieve a muscular corporate structure. To achieve ROIC improvement throughout theGroup, we see an urgent need to improve our internal management processes andbusiness planning methods and are taking action.

Positioning of FY2025➢ In addition to accelerating cost structure reforms, additional actions are taken to address new risks, such as soaring costs associatedwith the impact of the sudden depreciation of the yen➢ In Japan, we aim to achieve results in the second half and beyond by implementing brand and customer strategies. Overseas, we
restructure our business in China
ROIC

ROIC
10%

Important initiatives in FY2024➢ Speeding up cost structure reforms (taking additional
measures to deal with cost increases due to foreignexchange rate impact and other factors)

270.0
billion yen➢ Steadily implementing SCM reforms and growth strategies

ROIC
6-7%

➢ Reviewing and executing business plans in China

203.0➢ Advancing budget and performance managements(setting regional positioning and formulating businessplans with an awareness of target ROIC)

billion yen

Visualization of a steady recovery
in business performance byimproving the effectiveness of therevised medium-term management
plan and taking additional actions
to address the plan gap

ROIC
1-1.5%

183.0
billion yen

23/3

188.6
billion yen

24/3

25/3

26/3

31/3

187.2
billion yen

4Please see page four.
We will explain the positioning of the current fiscal year in the medium- and long-term
management strategy frame VISION2030, as well as the revised

medium-term plan.

As we have been saying for some time, in this revised medium-term plan, we plan to holdback our business performance by implementing structural reforms, etc., and thenreestablish a growth path through supply chain management reforms and theimplementation of growth strategies.
The performance forecast for the current fiscal year presents difficult figures as it takes
into account the impact of increased raw material costs due to exchange rate effects, etc.
However, the measures set forth in the revised mid-term plan are making steady progress,
and we expect to see results from H2 of the current fiscal year onwards.

We have also

begun to review the strategy of our China business, which continues to be sluggish.
Since the fiscal year ending March 31, 2026 is the final year of the revised medium-term
management plan and a very important year that will serve as a stepping stone toward
the next medium-term management plan, we will address issues with an awareness of
speed.

Targets of the Revised Medium-Term Management Plan
Opportunities⚫
⚫
⚫
⚫

Reiteration: Revised Medium-Term
Management Plan FY2024 to FY2026(disclosed November 9, 2023)

Risks
⚫

Diversifying the need to "be yourself"
Increasing the need for health and comfort
Social inculcation of sustainability awareness
Developing markets with significant growthpotential⚫
⚫
⚫

Increasing procurement costs due to changes in theexternal environment
Declining domestic demand due to population decline
Lack of competitiveness due to slow innovation
Declining corporate attractiveness and a serious
shortage of staff

Wacoal Group's strengths
Personalized body andmind database1

Research/knowledge ofvarious body types / life
stagesBusiness model reforms to improve profitability⚫
⚫

2

Reviewing supply chain management
Cost structure reform ● Dealing with unprofitable businesses

Improvingprofitability andcapital efficiency

Growth strategy to achieve VISION 2030⚫
⚫

Growth investments
Reviewing brand strategies ● Focusing on growth markets
Human resource development and organizational development and stakeholder
returns
to enhance corporate value

Manufacturing
technology for productsthat suit each customer

3

Organizational ability to meet
individual needs and embody
services

Introducing ROIC management⚫
⚫

4

Monitoring profitability and strategy effectivenessBusiness portfolio management

Promoting asset reduction⚫
⚫
⚫

Reducing inventories
Reducing strategic shareholdings
Streamlining real estate holdings

5

Page five, please.
This is the revised medium-term plan material disclosed on November 9.

Today, wewould like to explain about the four basic policies of the revised medium-term
management plan, including business model reform, the progress of our growth strategy,
and our initiatives for the current fiscal year, both domestically and internationally.
Now, Mr. Kawanishi, President of Wacoal Corp., will give an explanation of the domestic
situation.

Progress of Revised medium-term management Plan at Wacoal Corp.

6

I am Kawanishi, President and Chief Executive Officer of Wacoal Corp. I will now explain
the progress of the revised medium-term plan at Wacoal.

Reiteration: Revised Medium-Term
Management Plan FY2024 to FY2026(disclosed November 9, 2023)

The Future Wacoal

In order to grow and contribute to society by providing products and services that meet diversifying customer needs,
we will implement thorough corporate transformation through the medium-term management plan (revised)
The Past Wacoal✓✓

Providing value based on the results of our Company's
research
Uniform marketing for all customers✓✓

Over-reliance on our Company's strengths, the "product."
Lack of clear brand marketing strategies✓

Customer directory management through in-store beauty
advisor (BA)
Completing the integration of the customer data
infrastructure and starting to use the data

Provided value

Brand strategies

Customerstrategies✓✓

Supply chain
management

Cost structure

Decision making

Due to the lead time (LT) from product planning todelivery, which takes more than one year to productdevelopment, a gap between demand and production
planning tends to occur✓

High cost structure✓✓✓

Various coordination tasks hinder prompt decision-making
The responsibility for management strategy is not clear
Partial optimization (lack of progress that requires
coordination)

The Future Wacoal➢

In addition to providing value based on the results of our research,
we will provide products and services that empower each customer’s
individuality based on the values of diverse customers➢

Through the brand management thoroughly from "the customer's
point of view," we will cultivate attractive brands with clear value
Making the innerwear market itself attractive➢

Medium-term
management
plan (revised)➢➢

Increasing loyalty through the use of customer data
Building deep, broad, and long-term relationships with each andevery customer through personalized customer experiences andimproving LTV➢

Building demand-linked supply chain management that can flexibly
respond to changes in the market and customers➢

Achieving an optimal cost structure thorough rigorous selection and
focus

➢
➢
➢

Accelerating decision making
Clarifying responsibilities for business profit
Increasing productivity throughout the Company by achieving overall
optimization

7

Please see page seven.
This section describes what we hope to achieve through the corporate reforms brought
about by the revised medium-term management plan.
The content is a repetition of the material disclosed in the revised medium-term
management plan, but in summary, the goal is to become a company that thinks from thecustomer's perspective and allows each department to act in cooperation with each other.
In addition to developing products that clearly meet customer needs, we also implement
flexible promotions and production adjustments in response to changes in customer needs
and aim to maximize sales by reducing the number of out-of-stock items for popular items.
We will implement thorough reforms to become a company that can realize growth while
improving business efficiency.

Key Initiatives in the Medium-Term Management Plan (Revised)

Reiteration: Revised Medium-Term
Management Plan FY2024 to FY2026(disclosed November 9, 2023)

After implementing cost structure reforms, we will strengthen brand power, customer loyalty, and human resources toreturn to growth
In order to become a new Wacoal that can respond quickly to changes in customers and markets, we will link our
supply chain management to demand from the customer's point of view using digital technologies■ Initiatives in Wacoal's medium-term management plan (revised)

Business model reform

Supply chain
management reform

Optimizing cost structure through rigorous
selection and focus
Forming supply chain management that canquickly respond to changes

Cost structure reform

Customer strategies

✓
✓

✓
✓

Implementing a radical cost structure reform in order to restore Wacoal's basic profitability
We will improve the sales profit ratio by 3 pts to 4 pts and SG&A expenses by 4 pts to 5
pts by fiscal FY2026✓

Building deep, broad, and long-term relationships with each and every customer throughpersonalized customer experiences and improving LTV. Designing every contact pointwith customers to make them attractive
Maximizing the value of the customer experience by leveraging customer data andimproving the customer journey✓

Executing growth strategies✓

Strengthening brand development andcustomer loyalty by maximizing the value
provided by leveraging our strengths anddigital technologies

Brand strategies✓✓

Human resource
strategy

Implementing supply chain management (SCM) reform to respond quickly to changes incustomer needs and the market environment
Forming SCM linked to demand from the customer's point of view using digitaltechnologies✓

With thorough brand management from the customer's point of view, we will develop an
attractive brand with clear values and deepen the connection between the brand andcustomers
Making the innerwear market more attractive
To improve profitability as soon as possible, we will implement human resource
development, organizational development, and corporate culture reform for medium-to
long-term growth along with managing personnel planning
Leveraging the strengths and supporting growth of each beauty advisor (BA)8

Please see page eight.
This is also a restatement of the main initiatives set forth in the revised medium-term
management plan. I will explain the details later.

Business Plans for FY2024 and Effects of Structural Reforms and Growth
Strategies Expected for FY2025
In FY2024, we expect a significant decline in profit due to a decline in earnings associated with structural reforms, a deterioration in cost
rates, and temporary recording of IT expenses, etc.
We expect to generate business profit of 6 billion yen in FY2025 through the execution of growth strategies in accelerating both cost
structure reforms and SCM reforms■Revenue Plan (Excluding the impact of change in revenue recognition) ■Business Profit Plan

Effects ofGrowthStrategies
Improve the topline
associated with theexecution of customer
and brand strategies

-4.3

+2.1

Earnings decreased due to impactsof the discontinuation andintegration of brands, the withdrawal
of stores, and the decrease in thenumber of customers and the
reduction of sales floors

87.9

+2.0

Effects of improvement ofcosts and SG&A expenses
associated with SCM
reforms and cost structurereforms

Final
Year

FY2026target94.0

FY2025plan
Results from structuralreforms (e.g., pricerevisions) and theimplementation of
growth strategies

90.7

Reversal of temporary
expenses(IT infrastructure, etc.)

Effects of SCM
reforms and cost
structure reforms

+4.0

+1.5

FY2024
results(billions of yen)

✓ FY2025 Plan -2.6 billion (vs FY2024 -4.2 billion)✓ Final Year (FY2026) Target 6.0 billion✓ FY2025 Plan 87.9 billion (vs FY2024 -2.8 billion)✓ Final Year (FY2026) Target 94.0 billion

Effects of SCM
reforms and cost
structure reforms
Reduction in returns due
to price revisions andimplementation of SCM
reforms

1.6

Final
Year
FY2026targetSG&A
expenses
reduced

+1.2

6.0

Cost
reduction

+2.1

-1.7

FY2024
results-2.0
Impact of lower earnings
due to structural reforms(discontinuation andintegration of brands,
withdrawal of stores)
Higher cost rates due
to foreign exchange
effects and increased
raw material costs

Effects of cost
structurereforms (SG&A
expensereduction)

Effects of cost
structure reforms(Cost reduction)

-0.8

+1.3

FY2025
plan

-2.6

-2.0

Difference fromprevious fiscal year insettlement adjustment9+1.0
IT expenses for PC change, etc., andgrowth investment for topline
improvement+3.3

Effects ofGrowthStrategies
Increase in earnings
due to growthstrategies and impactof reduction of returns
due to SCM reforms

Please refer to page nine.
This section shows the planned values of sales revenue and business profit/loss for thecurrent fiscal year and its position in the revised mid-term plan.
Sales revenue is planned at JPY87.9 billion, a decrease of JPY2.8 billion YoY due to brandintegration and strategic store withdrawals. The business loss forecast is also JPY2.6 billion,
taking into account the impact of lower sales, soaring raw material prices, progressing yen
depreciation, and one-time IT expenses.
On the other hand, for the next fiscal year, we plan to achieve the targets set in the revised
medium-term business plan in terms of both sales and operating revenue by implementing
cost structure reforms, supply chain management reforms, and the effects of growthstrategies.
First, regarding the top line, we expect that the effects of price revisions promoted bystructural reforms and a decrease in returns will have a positive impact, as well as growthin e-commerce and improved sales at physical stores due to the implementation ofcustomer and brand strategies.
In addition, the Company intends to generate JPY6 billion in business revenue, the targetof the revised medium-term business plan, by reversing the one-time expenses incurredin the current fiscal year for IT infrastructure development, as well as cost reductions
through cost structure reforms, SG&A expenses reductions, and revenue increase effects
associated with growth strategies.
Although our performance in the current fiscal year will temporarily deteriorate, we believethat this is an important year for us to return to growth in the next fiscal year, and we will
steadily promote each measure with a sense of urgency.

Supply Chain Management Reform (SCM Reform)
We build a lean sales operation and planning and production systems that can respond quickly to changes in customer needs and themarket environment
In addition to developing and providing products that meet customer needs with short lead times, we reduce opportunity losses suchas products shortages, leading to improved profitability■Virtuous Circle Aimed at through SCM Reform■ Current vicious circle

A biasedproduct mix➢ A uniform productmix with new
products biased

Becoming badinventories➢ Stagnation of productsthat do not fit thecharacteristics andscale of the store★ We continue to produce andsupply salable products, andcreate a system to prevent
shortages of products

Sluggishsales

Inventory frame
restrictions➢ Inventory control at customers
due to deterioration ininventory efficiency

Shortagesof products➢ The demand fulfillment
percentage of best-selling
products decreased due to thecontrol of inventory frames

Production
Demandoriented repeat
portions

distribution

store

Quick delivery

Replenishment
andmaintenance atstoresStandard products: Continuing to produce and supply demand-oriented products to avoid theirshortages
New products: Selling out; developing high-rated products as candidates for next standard products

Supply Chain
Management Reform➢ Sluggish sales due to stagnant
bad inventories and shortagesof best-selling products

planning
Planning anddevelopmentwith a shortlead time

Optimizing in-store
product lineup
Demand-linked production
Shortening planning anddevelopment lead time (LT)

Production

store

Flexibly responding to increases
and decreases in demand
Decreasing distribution inventory

Securing inventory frames toreplenish best-selling products

Increasing sales by improving the demand fulfillment
percentage
Fostering strong standard products (star product numbers)

Sales of stores and ecommerce

UP

Streamlining
inventories

10

Please see page 10.
From here, I will explain specific initiatives and progress regarding supply chain
management reforms, cost structure reforms, and growth strategies, which will be key
elements in realizing a recovery in business performance in the next fiscal year.
First, I would like to explain once again the purpose of supply chain management reform,
which is positioned as the most important initiative in the revised medium-term businessplan.
Our supply chain management is, so to speak, an operation based on time-consuming
manufacturing and the accuracy of advance planning. However, amidst drastic changes incustomer needs and purchasing channels, we are not able to accurately forecast demand,
resulting in many lost sales opportunities due to inventory backlogs and shortages.
In this reform, our goal is to create products that sell and create a system that prevents
shortages from occurring. By developing and providing products that clearly meetcustomer needs in a short lead time, and flexibly producing and supplying products
according to demand, we increase the rate at which stores are filled with best-selling
products and reduce sales opportunity losses due to out-of-stock items.
In addition, we will improve the efficiency of distribution and over-the-counter inventories,
which will lead to improved profitability. By combining an optimized product mix anddemand-linked production, we aim to create strong standard products, so-called starproduct numbers, and further expand sales and improve inventory efficiency. Aiming forthis virtuous cycle is a major objective of supply chain management reform.

Progress of Supply Chain Management Reform (SCM Reform)
Through repeated field trials at stores, we are promoting initiatives to improve demand fulfillment percentage of products
and optimize product mix in each channel in order to build a demand-oriented business model. We aim to increase
inventory turnover ratio and transform into a business entity with high management efficiency
Specific activities

FY2024
Initiatives

Started to examine the effectiveness and potential of the demand-oriented
business model(Established a project team to coordinate planning, production, distribution,and stores)[From October 2023] Field trials started at some mass retailer stores➢ Confirmed that the replenishment of shortages contributes to the improvement ofopportunity loss in store sales➢ Discovered that there were deficiencies in the sales system for continuously
replenishing shortages[From March 2024] Expanded the number of experimental stores to 70, andthe effect is being verified
In order to quickly establish a demand-oriented supply chain management, weverify the effectiveness of the field trials at stores and accelerate the deployment■ System for promoting SCM reforms
Formed a project team with members
composed of persons in charge of planning,production, distribution, and stores. Persons
in charge of "planning," "production,""wholesale/sales," "directly-managed stores,""distribution," "IT," and "management" of
Wacoal Corp. participated in the project.

■Wacoal Corp.: Inventory turnover*Calculated by cost of sales ÷ inventory at end of March
3 0. 0

FY2025Plan

1. Improvement of in-store and e-commerce demand fulfillment percentage andoptimization of product mix➢ Normalize the automatic order placement operation mainly at mass retailer stores (selfservice stores)➢ Optimize the product mix according to the sales mix of each channel while increasing theratio of standard products
2. Efficient business operations to reduce inventories➢ Shorten planning and production lead time by utilizing existing patterns and review
management processes for development meetings, etc.
➢ Optimize inventory and controlling excess inventories by changing the production method
to match the demand situation at stores

Wholesale turnover
KPI in FY2026
2.5 turnover

Inventories
Inventory turnover

2.44

2 .6 02.33

2 5. 020.3

Inventory turnover
improvement

20.0

21.1

24.6
21.5

21.4

2 .4 021.5

2 .2 02 0. 0

2.11

2 .0 01 5. 0Decrease ininventories
1 .8 01.69

1 0. 01.90
1.71

1 .6 01.65

1 .4 05 .0

1 .2 00 .0

1 .0 0FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024

11

Next, please see page 11.
This describes the progress of supply chain management reform.
In the previous fiscal year, a project team was established to coordinate planning,production, logistics, and storefront operations, and a demonstration test was conductedat some volume retailers to verify the effectiveness and potential of the demand-linked
business model.
The results of the experiment confirmed that there is room for improvement in thefulfillment rate of best-selling product numbers. Since the establishment of an
appropriate replenishment system will greatly contribute to the improvement of machineloss in over-the-counter sales, we will expand the number of stores subject to thedemonstration experiment in the current fiscal year and take concrete measures such as
optimizing the product mix, normalizing automated ordering operations to reduceinventory, and reducing lead time by reviewing the management process for planned
production.

Progress status of cost structure reforms

Reiteration: Revised Medium-Term
Management Plan FY2024 to FY2026(disclosed November 9, 2023)

The effect of cost structure reforms is expected to be only approximately six billion yen due to the impact of foreignexchange rates and soaring raw material prices.
Consideration and implementation of additional actions such as price revisions and cost reductions(billions of yen)
Implemented items

Specific activities

Implementation timing

Revisedmedium-termplan Initial goal

FY2024 FY2025

FY20263-year effectforecast

Brand focus and selection⚫ Reducing losses on returns and discounting by
aggregating product numbers, etc.
(Reducing production lines by approx. 40% and thenumber of product number by more than 10%)
⚫ Reviewing sales price setting⚫ Aggregating production lines will start at
24AW and be completed during FY2025

1.9

0.5

1.9

2.4

Reducing production costs⚫ Improving inspection process efficiency⚫ Reducing man-hours by aggregating product numbers,
etc.

● Will be completed by FY2025

0.6

0.3

0.3

0.6

Reducing production andmaterial costs⚫ Reviewing the production system⚫ Aggregating materials and master colors● Will be completed by FY2025

0.4

0.2

0.6

0.8

Improving the profit andloss of stores⚫ Reviewing the terms and conditions of business withbusiness partners⚫ Withdrawing stores that are in the red (up to 32 stores)⚫ Optimizing personnel in order to improve productivity⚫ Considering the withdrawal from storesthat are in the red and those that are
not expected to revise transaction terms
during FY2024

0.9

1.0

0.3

1.3

Offering voluntary
retirement⚫ Optimizing personnel in order to improve productivity● Will be completed by FY2024

0.9

0.4

0.2

0.6

Optimizing other sales
promotion expenses⚫ Optimizing expenses for IT⚫ Optimizing advertising/promotion costs● Will be completed by FY2025

1.6

0.9

1.1

2.0

Reducing distribution
costs, etc.

⚫ Improving distribution business profitability● Will be completed by FY2025

0.6

0.0

0.4

0.4

-2.0

ー

-2.0

Approx. 7.0

Approx. 1.3

Approx. 4.8

Approx. 6.1

The impact of cost increase in FY2023 due to the impact of foreign exchange rates and soaring costs

Total

12

Please refer to page 12.
I will explain the progress of cost structure reform.
At the time of the announcement of the revised medium-term business plan in November,
we had planned to proceed with structural reforms amounting to JPY7 billion, taking into
account the probability risk. However, due to the impact of exchange rates resulting fromthe unexpected depreciation of the yen and the expected impact of approximately JPY2
billion on costs due to the sharp rise in raw material prices during the current fiscal year,
the effect of cost structure reforms at present is expected to be limited to approximately
JPY6 billion at this point.
Additional measures will be taken to reduce costs to close the gap with the initial plan of
JPY7 billion.

Growth Strategies (Brand Strategies and Customer Strategies)
To overcome the slump in sales, we provide products and services that empower customers by leveraging Wacoal's strengths anddigital technology
We achieve topline growth through e-commerce growth by strengthening digital communication and accelerating the development of
new specialty stores■Wacoal Corp.：
Performance transitions and FY2025 Plan
（FY2026 figures are medium-term management plan targets.）
106.5

104.0

GrowthStrategies

１．Brand Strategies➢

Foster attractive brands by strengthening brand management and develop strong
standard products that meet customer needs and attractive products
Take on the challenge of expanding our customer segments, centering on young,high-premium, and senior customers
Strengthen the conditioning business centered on sports, and expand "beauty,
comfort, and health" businesses using 3D measurement services and data

➢
100.9
93.2
81.4

90.7

94.0

➢

87.9

82.8

２．Customer Strategies➢

Deliver optimal customer experiences by leveraging digital technology- Increase LTV (Lifetime Value) by utilizing data of two years after customer integration- Build a cycle of utilization of store assistants’ knowledge obtained through customer
services and customer opinions- Deliver a highly satisfying customer experiences through 3D measurement services and theapp➢Enhance online (e-commerce)-based digital communications

３．Channel Strategies➢
FY2018FY2019FY202013

FY2021

FY2022

FY2023

FY2024FY2025

FY2026➢(billions of yen)

Continue to strengthen our own and other companies' e-commerce sales, anddevelop new directly-managed store business formats
Strengthen sales at urban department stores and establish efficient operation ofwholesale channels

Page 13.
This page outlines the growth strategies to be implemented to return to top-line growth.
First, in brand strategy, we will implement thorough customer-driven brand management.
Starting from this fiscal year, we will introduce a brand management system to develop
attractive brands tailored to market segments, as well as direct growth strategies centeredon young, premium, and senior demographics.
We will also develop products and services to empower each and every customer, such asrebranding Wacoal, strengthening our conditioning business with a focus on sports, andexpanding our beauty, comfort and health business using body data.
In terms of customer strategy, we will leverage digital technology to provide an optimal
customer experience. By utilizing customer data, customer feedback, and the customer
service knowledge of in-store sales staff, as well as by strengthening online-based digitalcommunication, we will build broad, deep, and long-lasting relationships with ourcustomers.
In our channel strategy, we will build up efficient operation of the wholesale channel,
strengthen our own and other companies' EC, and develop new directly-managed store
formats.

Progress of Brand Strategies
Through thorough "customer-centric" brand management, we cultivate attractive brands with clear value propositions
Specific activities■ Rebranding of the core brand "Wacoal"

Cultivated attractive brands, developed products that meet customer needs,
and took on the challenge of expanding our customer segments, centeringon young, high-premium, and senior customers

FY2024
Initiatives➢ Internally communicated the marketing strategy MAP (Marketing Analysis & Proposal)
derived from market analysis and consumer needs insights➢ Established eight areas for strengthening in our growth strategy and also established abrand portfolio➢ Reviewed the concept of the core brand "Wacoal"➢ Strengthened high-end brands, "Salute" and "Yue"➢ Provided new value with men's underwear

Expanded "beauty, comfort, and health" businesses➢ Rebranded to the 3D measurement services using "SCANBE"➢ Launched new services such as "mybraFit " and "Body type analysis"■ New service called "Watashi wo Shiru Kokkakushindan"(literally, Know Myself Bone Structure Diagnosis)
Body type analysis available for three types: Straight, Wave, and Natural

Introduce a brand management system and start to develop a customer-centricbrand and revise our communication policy

FY2025Plan➢ Review the brand management system (from April)➢ Rebrand the core brand "Wacoal" (autumn/winter 2024)➢ Implement the "Wing" summer campaign, incorporating a customer-centric revisedcommunication policy➢ Promote growth strategies in the strengthening areas (such as the formulation of strategies
for young, high-premium, and senior customers)

Expand "beauty, comfort, and health" businesses

14➢ Implement new value propositions based on the knowledge of the Wacoal Human Science
Research & Development Center and through the evolution of "SCANBE" for 3D measurement
services, and develop strategies for achieving the growth of the "CW-X" brandPlease see page 14.
This page describes the progress of the brand strategy.
In the previous fiscal year, the high-priced brands Salute, Yue, and men's underwear
performed well, as their new value proposition was well accepted by consumers, while thecore brands Wacoal Wing continued to struggle.
A marketing strategy, Marketing Analysis & Proposal, was developed to achieve further
growth of the higher-priced brands and recovery of the core brands.
Marketing Strategy, this MAP sets out eight areas of reinforcement in the growth strategy
from the brand's market analysis and consumer needs and insights, as well as clarifying
the positioning of the brand.
At the same time, we have redefined the value provided by the Wacoal brand and havedecided to rebrand the brand starting with this fall/winter season in 2024.
In addition, we have launched a 3D measurement service, SCANBE, and have begun
offering a new skeletal diagnosis service. We feel that 3D measurement services are highly
supported by young people and have great potential for growth in the future.
In the current fiscal year, we will begin to nurture brands and enhance communicationfrom the customer's perspective, in line with the strengthened segments and brandportfolio established in the previous fiscal year.
In the Wing innerwear campaign scheduled for the end of June, we will take a different
approach to communication and take on the challenge of increasing sales both in the EC
and in stores.
In addition, we will propose new value propositions utilizing the knowledge of the HumanScience Research and Development Center and body data accumulated in the 3D
measurement service SCANBE and build growth strategies for the conditioning businessand the CW-X brand.

Introducing a Brand Manager
We develop customer-centric attractive brands with clear value propositions and create exciting markets for ourcustomers
We provide products and services that empower customers' "who they are" based on the value provided by each brand■ Market segments

8 Brand Enhancement Points
Rebranding to renew brands and improve LTV➢➢

Age-group

Capturing market share in the affordable
segment for customers

BrandsDeveloping and expanding the high-premium
customer segment
Developing and expanding the high-premium
customer segment
Developing and expanding personal business
Increasing sales through new value
propositions

15~19 yrs. Old

20~29 yrs. Old

30~39 yrs. Old

40~49 yrs. Old

50~59 yrs. Old

60 yrs. Old and up

High premiumHigh premium
Premium

Price range

Capturing market share in the affordable
segment for customers

Analyzing the market attractiveness of each segment based on the"compound annual growth rate" x "bra market size" for FY2018 to
FY2022, setting market segments
Building a brand strategy in line with the strengthening segment

Better

The youngWacoal(Rebranding)

Senior class

Moderate
Affordable

Affordable

Cost saving■ Assigning brand managers (from April 2024)➢

In addition to the assignment of brand managers, we appoint a director
who develop business strategies for the expansion of young, highpremium, and senior customer segments to be strengthened

Utilizing human body knowledge /expanding health and sports fields

15Page 15.
I would like to explain the brand management system that was launched during the fiscal
year. In April of this year, we changed our brand management system to one in whichbrand managers are assigned to each of the eight areas of strength and brand portfolios
to provide consistent brand management from product planning to sales and profit-andloss management.
The brand manager is responsible for managing various functions such as planning,development, sales, and marketing, and is responsible for maximizing each brand's value
and increasing profits. It is true that there will be some areas where we are still trying tofigure things out as we are in a transition period, but together with the members listed on
the slide, we hope to develop an attractive brand with a clear value proposition.

Progress of Customer Strategies
To build deep, broad, and long-lasting relationships with our customers, we utilize digital tools to provide each individual with the
optimal customer experience.
Specific activities■ Website store's "Staff reviews"
Store assistants introduce reviews on the website store to support cross-channelpurchasing behavior

Achieved a growth regression through optimal customer experiences
through the use of digital technology

FY2024
Initiatives➢ Set a goal to increase the number of our existing continuous consumers (2 consecutive
years) based on ID-POS analysis➢ Identified the characteristics of existing customers for continuing purchases (i.e., the trendof using both our e-commerce site and stores)➢ Redesigned the loyalty program against the backdrop of customer behavioral
characteristics➢ Exceeded 4 million downloads for the cumulative number of downloads of our own app"WACOAL CARNET"

Enhanced online (e-commerce)-based digital communications➢ Started "Staff reviews" (reviews by store assistants) on the website store

Customer services evolved➢ Launched on-hold/backorder services at physical stores

Achieve a growth regression through optimal customer experiences
through the use of digital technology

FY2025Plan➢ Challenges:(1) Increase the number of customers visiting stores and the e-commerce site, as
well as the number of purchases by Wacoal members(2) Retain new registering customers(3) "Prevent existing customers from becoming dormant," "retain new customers,"
and "reactivate dormant customers"➢ Countermeasures:(1) Review points campaign(2) Enhance "on-hold/backorder" services that enable reserving products on thewebsite and trying them on and checking them at stores(3) Use "Staff reviews" "reviews by store assistants”(4) Improve the purchase rate through the loyalty program and the app(5) Improve the purchase rate through efficient operations of our own home page
content(6) Continuously enhance digital communications■ Utilization of customer data (utilization of our own app)
The amount of online (e-commerce) purchases via the official
app is prone to expand
442（Unit：％）

333
294

256
172

264
192

193

271

270

186

184

174

369

344
316

199

212

339

185

331

173

136

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

155

Mar

317

177

合計

16

Please refer to page 16.
This is also a description of the progress of the customer strategy.
In the previous fiscal year, the Company utilized customer data since the introduction of
Wacoal Members and developed a foundation for strategic planning based on moresophisticated analysis of purchasing intervals and customer behavior characteristics.
In addition, we are seeing an increase in sales via staff reviews, where we post reviews
from in-store sales staff on our own e-commerce site, and we are seeing a strong response
to digital communication based on e-commerce.
For the current fiscal year, to continue our efforts to maintain and acquire Wacoal members
and strengthen communication by combining real stores and e-commerce, we will review
our point campaign, expand our order and hold services, and further strengthen staff
reviews.
The above is an explanation of Wacoal's initiatives for the current fiscal year. Thank youvery much for your attention.

Initiatives of Medium-Term Management Plan (Revised) in Overseas
Business and Revision of Wacoal China's Business Plan

17

From here, the overseas business. I will focus on the business plan of Wacoal China,
which continues to struggle.

Business Plan for Overseas Business➢➢Despite factors for lower earnings, such as the withdrawal from IO and structural reforms in China, we plan to increase earnings due to growth in Europe
and the impact of foreign currency translation
In addition to the effect of higher earnings in Europe, we plan to increase profits in the overseas business as a whole due to factors such as the withdrawal
from IO and the implementation of structural reform initiatives in China■Revenues (Overseas segment total)

Other Asian Corporations

FY2025 Plan 70.0 billion (vs FY2024 +2.2 billion)

WEL

Wacoal China■Business Profit (Overseas segment total)(billions of yen)

FY2025 Plan 3.6 billion (vs FY2024 +0.8 billion)

WIC

Other Asian
corporations andaccount
Adjustments

-0.2
9.2

Wacoal China
Co., Ltd.

10.4

Wacoal Europe
Ltd.

19.2

70.0

67.8

66.7
±0

+1.2

+0.2

9.2

-0.3

10.1

9.0
10.4

% of sales
5.1％% of sales
4.6％% of sales
4.1％

+2.6
23.0

20.4

41
WacoalInternational
Corp. (U.S.)

±0

-0.2

3.1

+0.8

-0.3

3.6

2.8

103.7

28.0

28.0

27.8

FY2023

FY2024FY2025

FY2023

FY2024FY2025

results

resultsplan

results

results

plan

18

Please see page 18.
The business plan for the overseas business for the current fiscal year is stated on the
numerical basis of sales revenue and business profit.
For the current fiscal year, we plan to increase sales by JPY2.2 billion YoY to JPY70 billion,
due to business growth in Europe and the effect of foreign currency conversion, despite
the impact of the withdrawal of IO and the decrease in sales due to the review of thebusiness in China.
Business profit is projected at JPY3.6 billion, an increase of JPY0.8 billion YoY, because ofincreased sales in Europe, as well as the withdrawal of IO and structural reforms in China,
which will contribute to improved profits.

Major Initiatives for Overseas BusinessPartial correction: Revised Medium-Term
Management Plan FY2024 to FY2026
appendix (disclosed November 20, 2023)

Assuming the situation will continue to be uncertain, such as emergence of geopolitical risks anddecline in consumer confidence due to rapid inflation
Our Goals for VISION2030 (no change）

Overseas business initiatives under the medium-term management plan (revised)

In addition to achieving growth in existing areas (UK,US, and China) and expanding brand recognition incontinental Europe and India, we will transform ourbusiness structure to a high-profit structure

Assuming that the situation will continue to be uncertain, we will prioritize profit generation in FY2024
and FY2025 in each country while working to improve our management base and implementing growthstrategies for the next medium-term management plan

FY2031 Key KPIs (no change)¥108 billion
Operating profitability
10％
Sales revenue

1.

Steady growth in the U.K., the U.S.,
and China

2.

A bold business transformation to
EC business
Including customer EC, dedicatedEC ratio 50% and higher EC, and Wacoal EC sales

3.

Developing markets with large
potential for sales growth4.

Promoting the Asian headquarters
systemEmerging areas Germany: ¥3 billion, India: ¥7 billion

19

Growthstrategies

1. Growing EC
Expanding contact points with customers and achieving EC growth by promoting
digital strategies (OMO, CRM, Asia EC platform)
2. Developing and providing new products that meet market trends
Expanding contact points with new customers by developing and selling new
products based on market trend analyses in China and other countries in Asia

Strengthening
supply chain
management(1) Optimizing production and material procurement processes in overseas business(2) Reducing manufacturing costs by reorganizing the supply system within the Group(3) Expanding the supply network outside the Company to strengthen the affordable
market in China and Asia

Reviewingstrategies for
inefficientbusinesses

Withdrawal of LIVELY brand (IO)
After considering various possibilities for future business development, we determinedthat it would be difficult to improve the performance of the business in the future, anddecided to withdraw★ (Additional) Review of the business plan for China
We achieve a return to a growth path through selection and concentration initiatives,
while at the same time implementing cost structure reforms* Initiatives at major subsidiaries are explained on the following pages

Pages 19 and 20 show the revised medium-term management plan disclosed lastNovember.
This section describes the main initiatives of the overseas business and the initiatives in
Europe and the US. There is one change. We have added a note regarding the review ofour business plan in China, where we continue to struggle.

Reiteration: Revised Medium-Term
Management Plan FY2024 to FY2026
appendix (disclosed November 20, 2023)

Major Subsidiaries' Initiatives: Europe and the U.S
Wacoal Europe's initiatives

Wacoal International's (U.S) initiatives

In addition to promoting brand strategies to meet the diverse values ofcustomers, we will also form and promote growth strategies in regions withroom for growth, such as Germany and France

We will review the plan based on the current external environment. While
working to grow the EC business, we will begin to review our cost structure
to address the decrease in profit ratio due to increased costs➢ Accelerating the transition to an EC-focusedbusiness model➢ Accelerating the transition to an EC-focusedbusiness model

Improving the efficiency of the Dutch warehouse,strengthening EC business outside the UK (development of
Wacoal own EC, collaboration with other companies' EC)➢ Increase sales in continental Europe
In addition to cultivating existing areas, we will strengthen
sales activities in new areas, such as Germany, where
there is significant room for growth. In addition to expanding
our sales network, including EC and physical stores, we will
also consider alliances and M&As with other companies toachieve growth with quality and speed

FY2026 Performance KPIs

FY2026 Performance KPIs

Achieving continuous growth in the EC business bydeveloping new competitive compensation product groups
and strengthening CRM centered on digital fitting services✓ Sales revenue: ¥23.9 billion(CAGR: +5.6%)✓ Operating profitability: ¥2.6
billion (more than 10%)✓ EC ratio: 37%(FY2023: 31.7%)✓ Sales revenue: ¥28.8 billion(CAGR: 3.9%)✓ Operating profitability: ¥1.36
billion (5%)✓ EC ratio: 50%(FY2023: 45.6%)➢ Reviewing cost structure
In order to address the pressure of rising costs, we will
review retail prices, promote automation of distribution
operations (automatic picking, etc.), reduce procurement
costs, and begin reviewing our business model to optimize
our cost structure.

Wacoal America
Wacoal Europe
Total*1

Wacoal America
North America (U.S. and Canada)

Australia

UK

FranceGermany

Areas other than thoselisted on the left*4

Sales for FY2023

Wacoal Europe¥44.2 billion¥23.5 billion¥5.9 billion¥1.2 billion¥6.6 billion¥1.1 billion¥0.6 billion¥5.3 billion

EC¥17.5 billion¥11.4 billion¥2.8 billion

0¥2.4 billion¥0.2 billion¥0.3 billion¥0.4 billion

Physical stores¥26.7 billion¥12.1 billion¥3.1 billion¥1.2 billion¥4.2 billion¥0.9 billion¥0.3 billion¥0.9 billion

66%

3%

15%

2%

1%

12%

North America (U.S. and Canada)

Australia

UK

FranceGermany

OthersRetail market size*2¥1,804.5 billion¥98.7 billion¥416.8 billion¥205.5 billion¥351.1 billion

EC retail market size*2¥194.2 billion¥5.4 billion¥90.8 billion¥18.9 billion¥31.2 billion

Wacoal Group share*3

3.0%

2.4%

3.0%

1.1%

0.3%

Wacoal Group share*3 of EC

11.9%

-

4.8%

2.1%

1.9%

25 million people

67 million people

65 million people

83 million people

Sales ratio by area*1 to the total sales of Wacoal America andWacoal Europe

Innerwear market size

Innerwear

Population

20

373 million people*1 Simple sum of Wacoal America and Wacoal Europe (including internal transactions)*3 Wholesale sales are calculated by substituting retail amounts*2 Source: Euro monitor materials in 2022
*4 Total export sales of Wacoal America and sales outside the areas indicated in Wacoal Europe-

Review of the Business Plan for China
The impact of the economic downturn and the delay in responding to changes in consumer needs and behavior slowed the recovery of revenue
By focusing on the selection of and concentration on businesses, we return to a growth path and at the same time implement cost structurereforms■FY2024 Status■FY2025 Initiatives➢➢ Prioritize recovering from the deficit and start to select andconcentrate on sales channels➢ Build product merchandising that is linked to sales andadvertising strategies

Although we aimed to recover to the 80% level before the COVID19 pandemic, the recovery rate remains at 60-70%

Factors: Sales and product strategies that prioritize sales➢

Note: The graph shows the monthly figures before the adjustments in settling accounts.
(Including internal sales and based on net sales)
380
280

230

374

Reviewing
Plan

120

119

130

88

84

84

95

90

99

92

92
63

80
30

Build product merchandising that is linked to sales andadvertising strategies, and renew the brand image➢ Plan store openings/withdrawals and sales floor development inconjunction with advertising measures and product mix➢ Clarify product mix for each e-commerce customer➢ Create a sales floor linked to the rebranding of Wacoal Japan

209

180

21

Select and concentrate on channels to recover sales and profits➢ Focus on department stores*, which have high profit percentage
based on the profit and loss of stores. * Stores are selective➢ Reduce the number of new store openings in malls, which are themain factor of the deficit➢ Focus on "outlets" that balance the digestion of stagnant inventories
and the acquisition of sales➢ Implement selection and concentration for other companies' ecommerce sales, and increase revenue by concentrating resources

Product
Strategy

vs FY2023
vs FY2020

Wacoal China FY2024 sales trend

83
70

71

64

60

63

60

63

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

53
Nov.

57
Dec.

54
Jan.

Feb.

Revenue 10.1 billion （vs FY2023 -3％）
Operating profit 0.04 billion （Deficit in FY2023）

Sales
Strategies➢➢

FY2025
Plan

Sluggish sales in malls, which have high rent ratios and low profit
percentage
Worsened profitability by diversified e-commerce platform development
Inadequacy in product mix considering channel and store characteristics

Mar.

Let's skip page 20 and move on to page 21.
This page describes the review of our China business.
As for the China business, although we had been aiming for a recovery to 80% of the prepandemic level, the impact of the economic slowdown and delays in responding to changes
in consumer needs and consumption behavior have delayed the recovery of earnings.
Additionally, sales and product strategies that were developed in all directions, prioritizing
sales acquisition, have created a structure in which profits cannot be generated, and theCompany is unable to escape from an operating deficit.
To revitalize our China business, we first made changes in top management. The top
management of the Chinese subsidiary will be assumed by Mr. Tochio, General Managerof the Global Division, starting this May, and we will work to rebuild the business.
We will review our overall channel strategy and select and concentrate on high-margin
sales channels for both real stores and e-commerce.
At the same time, we will transform our business structure to ensure profits by building
products and merchandising that are linked to sales advertising strategies.

Asset Reduction, ROIC Management, and Financial Strategy(Only the Policy Is Stated)

22

Pages 22 to 25 are slides about the introduction of ROIC management, the promotion ofasset lightness, and the basic policy of financial strategy, which are listed in the revised
mid-term plan. All of this is a restatement of the revised medium-term plan disclosed lastNovember.
There is no change in this basic policy. As for the details of the initiatives and KPIs for thecurrent fiscal year, I will omit the explanation from me since they were explained by Mr.
Miyagi at the beginning of this presentation.

Reiteration: Revised Medium-Term
Management Plan FY2024 to FY2026(disclosed November 9, 2023)

Introducing ROIC management

Introducing ROIC management to improve capital efficiency and achieve a robust corporate structure
In addition to portfolio management, it is also used as a means of performance management to accurately measure results, andquantitatively link improvement activities on the ground with improvements in profitability and capital efficiency expected byinvestors and other stakeholders■ Introducing the process of ROIC management to business departments
KPIs

FY2026ROIC
6 to 7%

FY2024FY2025

FY2026⚫ Starting ROIC
management⚫ Links tocompensation

HD⚫ Consider
introducing ROIC
⚫ Conducting
simulations tograsp ROIC values

Wacoal(Japan)⚫ Sharing ROIC
management
introduction policy⚫ ROIC study
meetings⚫ Incorporating intobusiness activities(ROIC treebuilding)⚫ Starting ROIC
management⚫ Sharing ROIC
management
introduction policy⚫ ROIC study meetings⚫ Incorporating intobusiness activities(ROIC tree building)

Domestic andoverseassubsidiaries■ Purpose of introducing ROIC management

Inculcation process

TargetCompanies

Putting the management philosophy into practiceStrengthening business management functions

Introducing ROIC management⚫ Linking tocompensation⚫ Linking tocompensation⚫ Starting ROIC
management⚫ Linking tocompensation

Use with a corporate
perspective
Financial assessment of target
achievement status➢ Managing financial targets acrossthe Company➢ Optimizing the business portfolio➢ Managing new investment
profitability

Use with a business
operation perspective
Ensuring strategy effectiveness➢ Managing capital returns by theoperating company➢ Improving capital returns using the
ROIC tree➢ Linking with PDCA management andperformance evaluations

Achieving a return exceeding capital costs
Growth investments (reinvestments) and return tomulti-stakeholders

23

Reiteration: Revised Medium-Term
Management Plan FY2024 to FY2026(disclosed November 9, 2023)

Promoting Asset Reduction

The Company’s basic policy is to sell any assets that do not contribute to raising corporate value
When selling, we will search for investment opportunities that will contribute to business growth, and determine thebusinesses that should be invested in from the perspective of ROIC

Implemented items

24

Specific activities

Goals

Reducing inventories⚫ Reducing inventories through business model reforms(supply chain management reform and cost structurereform)⚫ Appropriate disposal of inventory resulting from thewithdrawal and consolidation of unprofitable brands

Wacoal:Inventory turnover ratio in FY2026: 2.5
turns

Reducing strategic
shareholdings⚫ Gradually selling the shareholdings that we have agreed
to sell

During FY2024 to FY2026 we will sell
approx. ¥ 30 billion of strategic
shareholdings(Reducing less than 10% of net assets by
FY2026)

Streamlining real estateholdings⚫ As for real estate that does not contribute to enhancing
corporate value, we will proceed with consideration basedon the basic policy of selling

While carefully examining the feasibility
and validity, we will gradually respond(starting the phase from FY2024)

Reiteration: Revised Medium-Term
Management Plan FY2024 to FY2026(disclosed November 9, 2023)

Financial Strategies

1. Improving profitability through business model reforms and growth strategies as a top priority, we will reduce inventories
and strategic shareholdings, and streamline real estate holdings to improve capital efficiency and ROE
2. While prioritizing investments for future growth, we will actively return profits to shareholders to improve capital efficiency

Cash generated during the 3-year period
Net income * excluding
impairment loss

¥ 10 billion

Depreciation costs*excluding lease liabilities¥ 20 billion

Asset reduction and debt
utilization¥ 80 billion
Of this, ¥ 30 billion is for reducing strategic
shareholdings

Total: ¥ 110 billion

25

Investment in new andexisting businesses

Returning dividends

Acquisition of treasury shares¥ 40 billion¥ 15 billion¥ 55 billion➢ Focusing on IT and digital investments
for growth➢ Investment in human capital➢ Continuing to pay stable dividends while
taking into account our consolidated
financial results and the status of asset
sales➢ Actively promoting improvements incapital efficiency

ESG

26

From here, I would like to explain ESG initiatives.

Initiatives to Improve Effectiveness１．Introduction of Performance-Linked Stock Remuneration Plan
The Plan is intended to be a framework that will provide incentives to Directors (excluding External Directors,
the “Eligible Directors”) to improve long-term corporate value and to further share that value with ourshareholders by clarifying the linkage between the compensation for the Eligible Directors and the Company’s
performance and stock value

2. Implementation of IR activities with the participationof three outside directors
Based on our basic policy of engaging in constructive dialog withshareholders, we have established opportunities for outside directors toengage in dialog with institutional investors with the aim of achieving ahighly convincing dialog from an objective perspective■Meeting details for March 27, 2024
Participants: Institutional investors and analysts 6 companies 8 persons
Agenda: Exchange of opinions to revise the medium-term management plan and improve theeffectiveness of management
Main questions (excerpts):➢ In order to improve the effectiveness of revising the medium-term management plan, it isnecessary to incorporate it into actions going forward. What kind of response do we feel
about the internal penetration of the plan revision and the feeling of right?
➢ While sales have not increased and structural reforms have been repeated on a momentto-moment basis, but have not been fundamentally resolved, how do we change theinternal culture without losing motivation?

27

Page 27 describes two recent initiatives to improve management effectiveness.
The first is the introduction of a new equity compensation plan. The Company will improvethe effectiveness of management by better clarifying the link between directors'
compensation and the Company's performance and stock value.
The second is the implementation of investor relations activities. In line with our basic
policy of engaging in constructive dialogue with investors to improve management
effectiveness, this past March we held a small meeting with three outside directors as
speakers.
We have received reports that there was a lively exchange of opinions at the meeting
regarding improving the effectiveness of the revised medium-term business plan andreforming the internal culture. We will continue to conduct proactive investor relations
activities and listen to the valuable opinions of institutional investors and otherstakeholders to enhance the effectiveness of our management.

Environmental and Human Rights Initiatives
We continue to work on climate change, resource recycling, responsible procurement, and respect for human rights,
which are our priority issues
Structure

Sustainability
Committee

PurposeFY2024 Initiatives

FY2025 Initiatives

Subcommittee for
Carbon Neutral

Achievement of adecarbonized society(Business activities
with lowenvironmental burden)- Formulated specific reduction plans for five businessfacilities that have a high impact on our operations inJapan to reduce CO2 emissions- Calculated CO2 emissions at overseas factories basedon a survey of power coefficients at nine overseas basefactories➢ Review the basic policy on environmental activities (environmental
management)➢ Scopes 1 & 2 in Japan: Implement activities in line with the reduction
roadmap➢ Scope 3 in Japan: Conduct interviews with suppliers to obtain
primary data, and promote the refinement of secondary data
(understand weight, etc.)➢ Scope 1 & 2 overseas: Study how to acquire energy data andemission coefficients. In addition, establish target plants and startresearch activities to formulate reduction plans

Subcommittee for
Resource
Circulation

Achievement of arecycling-oriented
society and promotionof waste reduction- Verified the target for the use rate in FY2026 ending inMarch in order to increase the use rate of environmentallyfriendly materials- Examined disposal methods with low environmental burden- Promoted upcycling activities➢ Continue to implement initiatives, i.e., (1) improve the use rate ofenvironmentally friendly materials, (2) reduce product waste, and (3)reduce the disposal of residual materials at factories and suppliers,
in order to achieve our target for the use rate of environmentallyfriendly materials

Subcommittee for
CSR Procurement

Promotion of CSR
procurement activities(Responsible
procurement activities)- Expanded the scope of CSR procurement activities(Started activities for monitoring raw materials and dyeing
factories)- Strengthened monitoring to improve the effectiveness of
CSR procurement activities➢ Promote monitoring of raw material suppliers and dyeing factories(continued)➢ Conduct a pilot study of impact assessment to start human rights
due diligence➢ Review the promotion system for CSR procurement activities

Promotion of respectfor human rights andDE&I- Identified key risks through human rights risk
assessment- Started to consider the achievement of an inclusive
sales floor environment➢ Conduct a pilot study of impact assessment to start human rights
due diligence➢ Implement initiatives to improve the workplace environment for
employees in the workplace and store assistants, and to respect thehuman rights and diversity of consumers➢ Implement human rights education➢ Eliminate unconscious bias to strengthen human capital, and strengthen
initiatives to penetrate DEI and management philosophy

Subcommittee for
Human Rights,
D&I

28

Please see page 28. This will be the last slide.
This slide describes our environmental and human rights initiatives.
In April 2022, the Group established a Sustainability Committee and four promotion
subcommittees to strengthen its response to key sustainability issues.
The initiatives of each of the promotion groups in the previous and current fiscal years areshown in the table on the slide. We will fulfill our social responsibility by continuing topromote our response to climate change, resource recycling, responsible procurement
activities, and human rights. That concludes my explanation.
To reiterate, the current fiscal year is an important year for our group, as it marks a turning
point in our business model. The business environment will continue to be difficult, but
we are determined to undertake reforms and create a foundation for growth in the next
fiscal year and beyond.
We would like to thank all our investors for their continued support. Thank you very muchfor your attention.

The information found in this document has been prepared based on information available at the time of its publication.
The company does not warrant or promise that the information will lead to favorable results. It is also subject to change
without notice.
While we exercise great care when posting this information, we are not responsible for any errors in the publishedinformation.
This is a translation of the original Japanese document, prepared and provided solely for readers' convenience. In caseof any discrepancy between this translated document and the Japanese original, the original document shall prevail.

29