[Translation]
Consolidated Business Results for the Second Quarter of the Fiscal Year Ending March 31, 2022
[U.S. GAAP]
October 29, 2021
Listed Company: Wacoal Holdings Corp.
Stock Exchange: Tokyo
Code Number: 3591
(URL: https://www.wacoalholdings.jp/)
Representative: (Position) Representative Director, President and Corporate Officer(Name) Hironobu Yasuhara
For Inquiries: (Position) Corporate Officer, General Manager of Corporate Planning (Name) Katsuya Hirooka
Tel: +81 (075) 682-1010
Scheduled quarterly report submission date:November 12, 2021
Scheduled dividend payment start date:
December 2, 2021
Supplementary materials regarding quarterly business results: Yes
Explanatory meeting regarding quarterly business results:
Yes (for institutional investors, analysts and the press)(Amounts less than 1 million yen have been rounded )1.

Second Quarter of the Fiscal Year Ending March 31, 2022 (April 1, 2021 – September 30, 2021)(1)

Consolidated Business Results(% indicates increase (decrease) from the corresponding period of the previous fiscal year)

Net Sales

Millions of Yen%

Second Quarter ended
87,419 19.5
September 30, 2021
Second Quarter ended
73,155 (27.9)
September 30, 2020
(Note)
Quarterly comprehensive income:Second Quarter ended
September 30, 2021
Second Quarter ended
September 30, 2020
(2)

Operating Income

Income Before
Income Taxes andEquity in Net
Income of AffiliatedCompanies

Net Income
Attributable to
Wacoal Holdings
Corp.

Millions of Yen

Millions of Yen

Millions of Yen

%

%

%

3,976

211.6

5,500

52.7

2,983

67.4

1,276

(86.6)

3,603(61.4)

1,782(73.3)

4,092 million yen (369.3%) for the second quarter ended
September 30, 2021
872 million yen ((78.1)%) for the second quarter ended
September 30, 2020

Net Income
Attributable to
Wacoal Holdings
Corp. Per Share

Diluted Net Income
Attributable to
Wacoal Holdings
Corp. Per Share

Yen

Yen

47.77

47.57

28.56

28.44

Consolidated Financial Condition

As of September 30, 2021
As of the end of Fiscal
Year (March 31, 2021)

Total Assets

Total Equity(Net Assets)

Total
Shareholders’EquityTotal
Shareholders’Equity Ratio

Millions of Yen

Millions of Yen

Millions of Yen%

303,935

221,461

218,41571.9

3,497.07

322,761

218,616

215,61266.8

3,454.18

Shareholders’Equity Per Share
Yen

2.

Status of Dividends

End of First
Quarter

Annual Dividend
End of Second End of Third
Quarter
Quarter

Yen

Yen

Yen

Fiscal Year Ended March 31, 2021
–
20.00
–
Fiscal Year Ending March 31, 2022–
20.00
Fiscal Year Ending March 31, 2022–
(Estimates)(Note) Revision of estimated dividends announced during the latest quarter: No
3.

Year-End

Total

Yen

Yen

20.00

40.00

30.00

50.00

Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March
31, 2022)(% indicates increase (decrease) from the previous fiscal year)

Net Sales

Millions of Yen %Operating
IncomeIncome Before
Income Taxes
Net Income
Net Income
and Equity in Net Attributable toAttributable to
Income of
Wacoal Holdings Wacoal Holdings
AffiliatedCorp.
Corp. Per Share
Companies

Millions of Yen % Millions of Yen %Millions of Yen %Annual
184,000 20.9
6,000
7,900 (26.8)
5,500(21.7)(Note) Revision of forecast of consolidated business results announced during the latest quarter: No

Yen
88.09

Notes(1)

Changes in significant subsidiaries in the consolidated cumulative second quarter of the current fiscal year (i.e.
changes in specified subsidiaries (tokutei kogaisha) which involve change in scope of consolidation): None

(2)

Application of simplified accounting methods and specific accounting methods: None

(3)

Changes in accounting principles:(i) Changes due to modifications in accounting standards, etc.: None(ii) Changes other than (i) above: None(4)

Number of Issued Shares (Common Stock)
Second Quarter ended
September 30, 2021
(i)
(ii)
(iii)

Number of issued shares (including
treasury stock) as of the end of:
Number of shares held as treasury
stock as of the end of:
Average number of shares duringconsolidated second quarter (second
quarter ended September 30):

Fiscal Year ended
March 31, 2021

65,589,042 shares

65,589,042 shares

3,132,525 shares

3,168,353 shares

62,438,539 shares

62,403,282 shares*These quarterly financial statements are exempt from the review procedures.

*Cautionary Statement regarding Forecast of Business Results(Cautionary note on forward-looking statements)
The forecast of business results is based on reasonable information we obtained as of the date hereof and, due to various
risks, uncertainties and other factors arising in the future, actual results in the future may differ largely from the estimates
set out in this document. For notes on conditions used for the forecast of business results and cautionary statements
regarding forecast of business results, please see “1. Qualitative Information regarding Consolidated Performance during
the Second Quarter – (3) Qualitative Information regarding Forecast of Consolidated Business Results” on page 7 of theattached materials.

Table of Contents for Attached Materials
1.

Qualitative Information regarding Consolidated Performance during the Second Quarter -------------------------- 2(1)

Qualitative Information regarding Consolidated Business Results ----------------------------------------------------- 2(2)

Qualitative Information regarding Consolidated Financial Condition ------------------------------------------------- 6(3)

Qualitative Information regarding Forecast of Consolidated Business Results --------------------------------------- 7

2.

Consolidated Quarterly Financial Statements and Accompanying Notes ---------------------------------------------- 8(1)

Consolidated Quarterly Balance Sheets ------------------------------------------------------------------------------------- 8(2)

Consolidated Quarterly Statements of Income --------------------------------------------------------------------------- 10(3)

Consolidated Quarterly Statements of Comprehensive Income ------------------------------------------------------- 10(4)

Consolidated Quarterly Statements of Cash Flows ---------------------------------------------------------------------- 11(5)

Notes to Consolidated Quarterly Financial Statements ----------------------------------------------------------------- 12(Notes on Going Concern) -------------------------------------------------------------------------------------------------- 12(Notes on Significant Changes in the Amount of Total Shareholders’ Equity) -------------------------------------- 12(Segment Information) ------------------------------------------------------------------------------------------------------- 12(6)

Status of Sales ---------------------------------------------------------------------------------------------------------------- 13

-1-

1.

Qualitative Information regarding Consolidated Performance during the Second Quarter(1)

Qualitative Information regarding Consolidated Business Results(i)Performance Overview of the Six Months ended September 30, 2021

Net sales
Cost of sales
Sales profit
Selling, general and administrative expenses
Operating income
Other income
A: Valuation gain on marketable securities andinvestments – net
Income before income taxes and equity in net incomeof affiliated companies
Net income attributable to Wacoal Holdings Corp.

Previous Cumulative
Second Quarter(From April 1, 2020
to September 30,
2020)
Amount73,15532,15940,99639,720
1,276
703
1,624

Reference figure: Income before income taxes andequity in net income of affiliated companies not taking
into account A

Current Cumulative
Second Quarter(From April 1, 2021
to September 30,
2021)
Amount87,41937,80549,61445,638
3,976
1,326
198

(Millions of Yen)
Increased/(Decreased) fromprevious cumulative
second quarter

Amount+14,264+5,646+8,618+5,918+2,700+623(1,426)

%
+19.5
+17.6
+21.0
+14.9
+211.6+88.6(87.8)

3,603

5,500

+1,897

+52.7

1,782

2,983

+1,201

+67.4

1,979

5,302

+3,323+167.9The business of our group during the current cumulative second quarter (April 1, 2021 – September 30, 2021)
has remained difficult domestically, while our business environment in the United States and Europe significantly
improved due to the loosened restrictions related to the coronavirus pandemic (“COVID-19”).
Under such circumstances, our group is moving forward with our initiatives to create a management structurethat leads to high profitability, while prioritizing the well-being and safety of our customers, employees and partnercompanies to conduct our business. We are also working to build a deeper, broader and longer-term relationship witheach customer by continuing to develop and provide products and services that consumers expect in their new lifestyles,
which have significantly changed as a result of the spread of COVID-19, and by promoting our unique CX strategies,
which involve merger of online and offline activities and utilization of a customer database, in efforts to improvecustomer experience.
As a result, consolidated sales, consolidated operating income, consolidated income before income taxes andequity in net income of affiliated companies, and income attributable to Wacoal Holdings Corp. for the current
cumulative second quarter (% change from the corresponding period of the previous fiscal year) were: 87.42 billion yen(an increase of 19.5% as compared to the corresponding period of the previous fiscal year); 3.98 billion yen (an increaseof 211.6% as compared to the corresponding period of the previous fiscal year); 5.50 billion yen (an increase of 52.7% ascompared to the corresponding period of the previous fiscal year); and 2.98 billion yen (an increase of 67.4% ascompared to the corresponding period of the previous fiscal year), respectively. We recognized a valuation gain on
marketable securities and investments of 0.20 billion yen. (We have been using U.S. accounting standards, under which
equity securities held by the Company and consolidated subsidiaries are measured at fair value, and any change from the
beginning of the period are recognized as “Other income (expenses)”.)The key exchange rates used for the current consolidated second quarter (previous second quarter) were: 109.80
yen (106.92 yen) to the U.S. dollar; 152.50 yen (135.38 yen) to the Sterling pound; and 16.66 yen (15.38 yen) to theChinese yuan.

-2-

(ii)

Business Overview of Our Operating Segments(Millions of Yen)
Previous Cumulative
Second Quarter(from April 1, 2020 to
September 30, 2020)
AmountTotal Net Sales
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other

Operating Income/(Loss)
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other

73,15541,031
19,448
6,067
6,609

Current Cumulative
Second Quarter(from April 1, 2021 toSeptember 30, 2021)

Distribution
Ratio (%)
100.0
56.1
26.6
8.3
9.0

Previous Cumulative
Second Quarter(from April 1, 2020 to
September 30, 2020)% toAmount
Sales
1,276
1.7
913
2.2
(255)
1,014
16.7
(396)
-

Amount87,41942,93532,3796,161
5,944

Distribution
Ratio (%)
100.0
49.1
37.0
7.1
6.8

Current Cumulative
Second Quarter(from April 1, 2021 toSeptember 30, 2021)% to
Amount
Sales
3,976
4.5
740
1.7
2,663
8.2
1,053
17.1
(480)
-

Increased/(Decreased) fromprevious cumulative
second quarter
Amount%+14,264+1,904+12,931
+94
(665)

+19.5
+4.6
+66.5
+1.5
(10.1)

Increased/(Decreased) fromprevious cumulative
second quarter
Amount%+2,700(173)+2,918+39(84)+211.6(18.9)+3.8-(Reference) Net Sales and Operating Income/ (Loss) of Major Subsidiaries(Millions of Yen)

Net Sales

Previous Cumulative
Second Quarter(from April 1, 2020 to
September 30, 2020)
AmountWacoal Corp.
Wacoal International Corp. (U.S)
Wacoal Europe Ltd.
Wacoal China Co., Ltd.
Peach John Co., Ltd.
Lecien Corporation
Nanasai Co., Ltd.

38,450
8,511
4,598
4,286
6,067
2,424
2,835

Current Cumulative
Second Quarter(from April 1, 2021 toSeptember 30, 2021)

Distribution
Ratio (%)
52.6
11.6
6.3
5.9
8.3
3.3
3.9

Amount38,826
14,445
8,596
6,585
6,161
1,753
2,515

Distribution
Ratio (%)
44.4
16.5
9.8
7.5
7.0
2.0
2.9

Increased/(Decreased) fromprevious cumulative
second quarter
Amount%+376+5,934+3,998+2,299
+94
(671)
(320)

+1.0
+69.7
+87.0
+53.6
+1.5
(27.7)(11.3)*Sales to external customers only
(Millions of Yen)

Operating Income/(Loss)

Previous Cumulative
Second Quarter(from April 1, 2020 to
September 30, 2020)
AmountWacoal Corp.
Wacoal International Corp. (U.S.)
Wacoal Europe Ltd.
Wacoal China Co., Ltd.
Peach John Co., Ltd.
Lecien Corporation
Nanasai Co., Ltd.

(985)
(915)
139
409
1,014
97
(203)

Current Cumulative
Second Quarter(from April 1, 2021 toSeptember 30, 2021)

% to
Sales
3.0
9.5
16.7
4.0
-

Amount
35
1,120
1,107
389
1,053
(149)
(219)

% to
Sales
0.1
7.8
12.9
5.9
17.1
-

Increased/(Decreased) fromprevious cumulative
second quarter
Amount%+1,020+2,035
+968
(20)
+39
(246)
(16)

+696.4
(4.9)
+3.8
-

*Sales and operating income/(loss) amounts of major subsidiaries are based on the accounting standards in respective countries

-3-

a.

Wacoal Business (Domestic)

Sales and operating income attributable to our “Wacoal Business (Domestic)” segment were 42.94 billion yen(an increase of 4.6% as compared to such sales for the corresponding period of the previous fiscal year) and 0.74 billion
yen (a decrease of 18.9% as compared to such operating income for the corresponding period of the previous fiscal year),respectively. We were less profitable due to the absence of the employment adjustment subsidy we received during thecorresponding period of the previous fiscal year.
Wacoal Corp.:
Sales from Wacoal Corp., our core operating entity in Wacoal Business (Domestic) segment increased by 1.0%
as compared to such sales for the corresponding period of the previous fiscal year, which was impacted by the spread of
COVID-19; as a result, sales remained around the same level. The amount of revenue increase when compared as tosales attributable to Wacoal Corp. for the corresponding period of the previous fiscal year and when compared as to sales
attributable to our “Wacoal Business (Domestic)” segment for the corresponding period of the previous fiscal year
differs mainly due to the new revenue recognition standards adopted by Wacoal Corp. from the current fiscal year.
While we recorded an increase of 33.3% in revenue during the current consolidated first quarter as a result of an
improvement in business environment, revenue decreased by 16.7% for the current consolidated second quarter due to a
low number of customers visiting retail facilities, reflecting weaker desire to consume as a result of various factors
including declarations of the state of emergency and an increased number of COVID-19 cases from July.
Sales from our e-commerce website, “Wacoal Web Store”, which achieved significant growth during thecorresponding period of the previous fiscal year due to demand from customers staying home, exceeded the strong
results from the corresponding period of the previous fiscal year, as a result of a purchase rate that exceeded our plan due
to our successful free shipping campaign. Sales from third-party e-commerce websites also exceeded the results for thecorresponding period of the previous fiscal year.
While sales were weak, we recorded an operating income of 0.04 billion yen (an operating loss of 0.99 billion
yen for the corresponding period of the previous fiscal year) as a result of our efforts to reduce costs as part of a revenue
structural reform to build a management structure that leads to high profitability. The employment adjustment subsidy is
not included and reflected in this operating income, because it is recognized as non-operating income (which has been
reclassified as operating income under the consolidated business results based on the U.S. accounting standards).

b.

Wacoal Business (Overseas)

Sales and operating income attributable to our “Wacoal Business (Overseas)” segment on a Japanese yen basis
were 32.38 billion yen (an increase of 66.5% as compared to such sales for the corresponding period of the previous
fiscal year) and 2.66 billion yen (an operating loss of 0.26 billion yen for the corresponding period of the previous fiscal
year), respectively.
Sales of our “Peach John” brand products sold in China, which were recorded under this “Wacoal Business(Overseas)” segment during the previous fiscal year, are now recorded under our “Peach John Business” segment, andthe business result for the corresponding period of the previous fiscal year has been revised retroactively.
In addition, sales from Wacoal China related to department stores have been changed to be presented based on
storefront prices starting for the current fiscal year, but we have not made retroactive revisions. Because the amounts ofboth sales and selling, general and administrative expenses increase in the same amount as a result of such change, there
is no impact on the amount of operating income.
Wacoal International Corp. (U.S.):
Sales from Wacoal International Corp. (U.S.) on a local currency basis increased by 65.3% (an increase of
69.7% on a Japanese yen basis) as compared to such sales from the corresponding period of the previous fiscal year.
Sales from Wacoal America, Inc., which distributes “Wacoal” and “b.tempt’d” brand products, increased by
72.5% exceeding the pre-pandemic level, due to strong sales from our e-commerce website and physical stores at
department stores supported by strong recovery in consumer spending.
While we faced challenges in attracting customers to our e-commerce website due to the impact of reduced
marketing expenses in response to rising costs of social media advertising, sales from Intimates Online, Inc., which-4-distributes the “LIVELY” brand, increased by 35.7% due to improved purchase rate from website renewal that made it
more user-friendly, and sales to Target Corporation.
We recorded an operating income of 10.2 million dollars on a local currency basis (1.12 billion yen on a
Japanese yen basis) (operating loss of 8.6 million dollars (0.92 billion yen on a Japanese yen basis) for the corresponding
period of the previous fiscal year) due to the favorable effect of increased revenue and improved gross profit rate, despite
our continued strategic investments to expand our e-commerce business.
Wacoal Europe Ltd.:Sales from Wacoal Europe Ltd. on a local currency basis increased by 66.0% (an increase of 87.0% on a
Japanese yen basis) as compared to such sales for the corresponding period of the previous fiscal year.
After loosening of COVID-19 measures, economic activities in the major markets have been recovering, andsales in the United States, United Kingdom and Europe for the current consolidated second quarter exceeded the prepandemic levels across all areas. With respect to sales by channel, sales from department stores fell below the prepandemic level due to the impact of closings of our core clients, while sales from specialty stores has recovered to thepre-pandemic level. Sales of our e-commerce business in the United Kingdom increased significantly by 54.4% andaccount for approximately 6% of sales from Wacoal Europe Ltd.
Operating income on a local currency basis increased by 613.0% (an increase of 696.4% on a Japanese yenbasis) due to the effect of increased revenue.
Wacoal China Co., Ltd.:Sales from Wacoal China Co., Ltd. on a local currency basis increased by 41.8% (an increase of 53.6% on a
Japanese yen basis) as compared to such sales from the corresponding period of the previous fiscal year.
While sales from physical stores, such as department stores, increased due to recovery in sales of “Wacoal” and“Salute” brand products as the trend toward temporary closings of physical stores during the spread of COVID-19
reversed, sales have not yet recovered to the pre-pandemic level (as compared to wholesale price basis). E-commerce
sales were below the results from the corresponding period of the previous fiscal year due to increased competition withnew brands and weak results from a large-scale shopping campaigns conducted by e-commerce platformers.
Operating income on a local currency basis decreased by 12.3% (a decrease of 4.9% on a Japanese yen basis)due to the absence of the effect of government assistance, which were available during the corresponding period of theprevious fiscal year, and the one-time impact of the difference in the old Chinese accounting standards and new Chinese
accounting standards that we adopted at the end of the previous fiscal year.
c.

Peach John Business

Sales attributable to our “Peach John Business” segment were 6.16 billion yen (an increase of 1.5% as comparedto such sales for the corresponding period of the previous fiscal year).
While sales from our directly-managed stores for the current consolidated second quarter decreased due to theimpact of the increased number of COVID-19 cases from July, sales increased by 22.6% as a result of recovery in sales
during the current first quarter. E-commerce sales did not reach the level of sales for the corresponding period of theprevious fiscal year, when sales significantly expanded due to demand from consumers staying home and decreased by
13.8%.
We recorded an operating income of 1.05 billion yen (an increase of 3.8% as compared to such operating income
for the corresponding period of the previous fiscal year) due to improvement in gross profit rate and our efforts to reduce
costs, in addition to the effect of increased revenue.

-5-

d.

Other

Overall sales attributable to our “Other” business segment were 5.94 billion yen (a decrease of 10.1% ascompared to such sales for the corresponding period of the previous fiscal year), while we recorded an operating loss of
0.48 billion yen (operating loss of 0.40 billion yen for the corresponding period of the previous fiscal year).
Lecien Corporation:
Sales from Lecien Corporation decreased by 27.7% as compared to such sales for the corresponding period of
the previous fiscal year due to the weak sales of our private products sold by general merchandise stores and major
apparel supply chain companies. Despite our efforts to reduce costs, we recorded an operating loss of 0.15 billion yen(operating income of 0.10 billion yen for the corresponding period of the previous fiscal year) due to the significant
impact of decreased revenue.
Nanasai Co., Ltd.:Sales from Nanasai Co., Ltd. decreased by 11.3% as compared to such sales for the corresponding period of theprevious fiscal year because our construction business weakened from cancellation and postponement of new shop
openings and various events following the spread of COVID-19. Despite our efforts to reduce costs by reassessing ouroperations, we recorded an operating loss of 0.22 billion yen (operating loss of 0.20 billion yen for the corresponding
period of the previous fiscal year) due to the significant impact of decreased revenue.
(2)

Qualitative Information regarding Consolidated Financial Condition(i)

Assets, Liabilities and Total Shareholders’ Equity

Our total assets as of the end of the current consolidated second quarter were 303,935 million yen, a decrease of
18,826 million yen from the end of the previous fiscal year, mainly due to a decrease in cash and cash equivalents for
repayment of bank loans.
Our total liabilities were 82,474 million yen, a decrease of 21,671 million yen from the end of the previous fiscal
year, mainly due to repayment of short-term bank loans for reasons similar to those discussed with respect to assets.
Total Wacoal Holdings Corp. shareholders’ equity was 218,415 million yen, an increase of 2,803 million yen
from the end of the previous fiscal year, mainly due to increase of retained earnings and changes in foreign currencytranslation adjustments.
As a result of the above, our total shareholders’ equity ratio as of the end of the current consolidated second
quarter was 71.9%, an increase of 5.1% from the end of the previous fiscal year.
(ii)

Cash Flows

Cash and cash equivalents as of the end of the consolidated second quarter of the current fiscal year were 46,797
million yen, a decrease of 16,760 million yen from the end of the previous fiscal year.
(Cash Flow Provided by Operating Activities)
Cash flow provided by operating activities was 8,708 million yen, as compared to cash outflow of 2,990 million
yen for the corresponding period of the previous fiscal year, after adjustments for changes in assets and liabilities to ournet income of 3,000 million yen plus adjustments for depreciation expenses and deferred taxes.
(Cash Flow Used in Investing Activities)
Cash flow used in investing activities was 2,821 million yen, an increase of 886 million yen as compared to thecorresponding period of the previous fiscal year, due to capital expenditures and payments to acquire intangible assets.
(Cash Flow Used in Financing Activities)
Cash flow used in financing activities was 22,568 million yen, as compared to cash inflow of 35,839 million yen
for the corresponding period of the previous fiscal year, due to repayment of short-term bank loans, payments made fordividends as well as contingent consideration.

-6-

(3)

Qualitative Information regarding Forecast of Consolidated Business Results
Based on the fact that external factors remain uncertain, we have not revised our forecast of consolidated

business results for the fiscal year ending March 31, 2022 since we announced such forecast on May 14, 2021. The
future, however, remains uncertain due to the impact of COVID-19. We will announce an updated forecast immediately
if we deem it necessary to reassess the impact on our business results based on the condition of the spread of COVID-19.

-7-

2.

Consolidated Quarterly Financial Statements and Accompanying Notes(1)

Consolidated Quarterly Balance SheetsI.

Accounts

Previous Fiscal Year
as of March 31, 2021

(Assets)

Millions of Yen

Current Consolidated
Second Quarteras of September 30, 2021
Millions of Yen

Increase/(Decrease)
Millions of Yen

Current assets:
Cash and cash equivalents

63,557

46,797(16,760)

Time deposits

1,443

1,913

470

Marketable securities

253

-

(253)

Notes and accounts receivable

17,571

18,425854

Allowance for doubtful receivables
Inventories(346)
43,250(291)

55

44,176

926

600

719

119

7,794

3,556

(4,238)134,122

115,295(18,827)Land

20,56920,559(10)

Buildings and structures

72,97873,353375

Machinery and equipment

19,356

19,722366

Return assets
Other current assets
Total current assets
II. Property, plant and equipment:

Construction in progress

1,264

3,711

2,447

114,167

117,345

3,178(64,409)(65,845)(1,436)49,75851,5001,742

Operating leases right-of-use assets

12,72912,019(710)

Investments in affiliated companies

21,207

21,590383

Investments

51,60350,016(1,587)

Goodwill

21,16921,186

17

Other intangible assets

15,22014,910(310)

Prepaid pension expense

9,533

9,906

373

Deferred income taxes

1,649

1,764

115

Other

5,771

5,749

(22)

138,881

137,140(1,741)

322,761

303,935(18,826)

Accumulated depreciation
Net property, plant and equipment
III. Other assets:

Total other assets
Total assets

-8-

I.

Accounts

Previous Fiscal Year
as of March 31, 2021

(Liabilities)

Millions of Yen

Current Consolidated
Second Quarteras of September 30, 2021
Millions of Yen

Increase/(Decrease)
Millions of Yen

Current liabilities:
Short-term bank loans

40,672

20,663(20,009)

Notes and accounts payable:
Trade notes payable

712

666

(46)

Trade accounts payable

8,734

8,365

(369)

Other payables

6,610

3,822

(2,788)16,056

12,853(3,203)

Accrued payroll and bonuses

6,822

6,232

(590)

Income taxes payable

1,025

1,507

482

Refund liability

2,266

2,297

31

Short-term operating lease liabilities

4,411

4,196

(215)

Contingent consideration (short-term)
Other current liabilities
Total current liabilities

-

895

895

4,819

5,968

1,149

76,071

54,611(21,460)

1,498

1,511

13

II. Long-term liabilities:
Long-term debt
Liability for termination and retirement
benefits
Deferred income taxes

1,942

1,958

16

12,292

13,363

1,071

Long-term operating lease liabilities

8,520

8,043

(477)

Contingent consideration(long-term)

1,639

745

(894)

Other long-term liabilities

2,183

2,243

60

Total long-term liabilities

28,074

27,863(211)

Total liabilities

104,145

82,474(21,671)

13,26013,260-(Equity)I.

Common stock

II. Additional paid-in capital

29,12029,047(73)

III. Retained earnings

181,346

183,081

1,735

Foreign currency translation adjustments

1,770

2,791

1,021

Pension liability adjustments(1,008)(989)

19

V. Treasury stock, at cost
Total Wacoal Holdings Corp.
shareholders’ equity
VI. Noncontrolling interests(8,876)(8,775)

101

215,612

218,415

2,803

IV. Accumulated other comprehensive loss:

3,004

3,046

42

Total equity

218,616

221,461

2,845

Total liabilities and equity

322,761

303,935(18,826)

-9-

(2)

Consolidated Quarterly Statements of Income

Accounts

I.

Net Sales

Previous Consolidated
Cumulative Second Quarter(From April 1, 2020
to September 30, 2020)
Millions of Yen%

Current Consolidated
Cumulative Second Quarter(From April 1, 2021
to September 30, 2021)
Millions of Yen%

Increase/(Decrease)
Millions of Yen

73,155100.0

87,419100.0

14,264

Cost of sales

32,15944.0

37,805

43.3

5,646

Selling, general and administrative expenses

39,72054.3

45,638

52.2

5,918

Total operating costs and expenses

71,87998.3

83,443

95.5

11,564

Operating income

1,276

1.7

3,976

4.5

2,700

II. Operating costs and expenses:

III. Other income (expenses):(3)

Interest income

34

39

5

Interest expense

(32)

(37)

(5)

Dividend income
Valuation gain on marketable securities andinvestments – net
Other – net

690

639

(51)

1,624

198

(1,426)

11

685

674

Total other income
Income before income taxes and equity in net
income of affiliated companies
Income taxes
Income before equity in net income of affiliatedcompanies
Equity in net income of affiliated companies

2,327

3.2

1,524

1.8

(803)

3,603

4.9

5,500

6.3

1,897

2,350

3.2

2,617

3.0

267

1,253

1.7

2,883

3.3

1,630

411

0.6

117

0.1

(294)

Net income
Net (income) loss attributable to noncontrollinginterests
Net income attributable to Wacoal Holdings
Corp.

1,664

2.3

3,000

3.4

1,336

118

0.1

(17)

(0.0)

(135)

1,782

2.4

2,983

3.4

1,201

Consolidated Quarterly Statements of Comprehensive Income

Accounts

I. Net income
II. Other comprehensive income (loss)- net of tax:
Foreign currency translation adjustments

Previous Consolidated
Cumulative Second Quarter(From April 1, 2020
to September 30, 2020)
Millions of Yen

Current Consolidated
Cumulative Second Quarter(From April 1, 2021
to September 30, 2021)
Millions of Yen

Increase/(Decrease)
Millions of Yen

1,664

3,000

1,336

(1,104)

1,073

2,177

Pension liability adjustments

312

19

(293)

Other comprehensive income (loss)

(792)

1,092

1,884

Comprehensive income
Comprehensive (income) loss attributable tononcontrolling interests
Comprehensive income attributable to
Wacoal Holdings Corp.

872

4,092

3,220

244

(69)

(313)

1,116

4,023

2,907

- 10 -

(4)Consolidated Quarterly Statements of Cash Flows

Accounts

Previous Consolidated Cumulative
Second Quarter(From April 1, 2020
to September 30, 2020)
Millions of Yen

I. Operating activities
1. Net income
2. Adjustments to reconcile net income to net cash provided
by operating activities(1) Depreciation and amortization(2) Allowance for doubtful receivables - net(3) Deferred income taxes(4) Gain on sales or disposal of property, plant andequipment - net(5) Impairment charges on property, plant and equipment(6) Valuation gain on marketable securities and investments– net(7) Equity in net income of affiliated companies,
less dividends received(8) Changes in assets and liabilities
Increase in notes and receivable
Increase in inventories
Increase in return assets
Decrease (increase) in other current assets
Decrease in notes and accounts payable
Increase in refund liability(Decrease) increase in liability for termination andretirement benefits
Increase (decrease) in other liabilities(9) Other
Net cash provided by (used in) operating activities
II.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Investing activities
Increase in time deposits
Decrease in time deposits
Proceeds from sales and redemption of equity securities
Payments to acquire equity securities
Proceeds from redemption of debt securities
Proceeds from sales of property, plant and equipment
Capital expenditures
Payments to acquire intangible assets
Payments for loans
Other
Net cash used in investing activities

III. Financing activities
1. Net increase in short-term bank loans with original
maturities of three months or less
2. Procurement of short-term loan (over 3 months)
3. Repayment of short-term loan (over 3 months)
4. Procurement of long-term debt
5. Repayment of long-term debt
6. Repurchase of treasury stock
7. Dividends paid on common stock
8. Dividends paid to noncontrolling interests
9. Proceeds from stock issuance to noncontrolling interests
10. Payments to acquire interests in subsidiaries fromnoncontrolling interests
11. Contingent consideration payment
Net cash (used in) provided by financing activities
IV. Effect of exchange rate changes on cash and cash
equivalents
V. Net (decrease) increase in cash and cash equivalents
VI. Cash and cash equivalents, beginning of period
VII. Cash and cash equivalents, end of period- 11 -

Current Consolidated Cumulative
Second Quarter(From April 1, 2021
to September 30, 2021)
Millions of Yen

1,664

3,000

3,013
11
(81)

2,985
(56)
957

(370)

(131)

625

-

(1,624)

(198)

116

238

(801)
(348)
(103)
(700)
(3,427)
365

(761)
(530)
(119)
4,141
(1,642)
31

173

(336)

(1,475)(28)(2,990)

989
140
8,708

(323)
292
288
(6)
321
643
(1,364)(1,494)(315)
23(1,935)

(819)
372
1,819
(2)
220
270
(3,197)(1,512)28(2,821)

17,848-20,428
1,176
(25)
(0)
(1,248)(81)-(20,000)(25)(0)(1,248)(82)
55(1,190)-(1,069)35,839(1,268)(22,568)

(133)

(79)

30,781
27,90558,686(16,760)
63,557
46,797

Additional Cash Flow Information
Previous Consolidated Cumulative
Second Quarter(From April 1, 2020
to September 30, 2020)

Accounts
Cash paid for:
Interest
Income taxes
Noncash investing activities
Acquisition of fixed assets by assuming payment
obligation(5)

Current Consolidated Cumulative
Second Quarter(From April 1, 2021
to September 30, 2021)

24
5,054

37
(3,698)426

299

Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Total Shareholders’ Equity)
Not applicable.
(Segment Information)(i)

Operating Segment Information

Previous Consolidated Cumulative Second Quarter (From April 1, 2020 to September 30, 2020)(Millions of Yen)
Wacoalbusiness(Domestic)

Wacoalbusiness(Overseas)

Peach Johnbusiness

41,031

19,448

6,067

6,609

73,155-73,155

342

4,695

111

1,840

6,988

(6,988)-

Total

41,37324,143

6,178

8,449

80,143(6,988)73,155

Operating income (loss)

913

(255)

1,014

(396)

1,276

-

1,276

Net sales(1) Externalcustomers(2) Intersegment

Other

Total

Elimination

Consolidated

Current Consolidated Cumulative Second Quarter (From April 1, 2021 to September 30, 2021)(Millions of Yen)
Wacoalbusiness(Domestic)

Wacoalbusiness(Overseas)

Peach Johnbusiness

42,93532,379

6,161

5,944

87,419-87,419

385

4,279

178

1,916

6,758

(6,758)-

Total

43,32036,658

6,339

7,860

94,177(6,758)87,419Operating income (loss)

740

2,663

1,053

(480)

3,976

-

3,976

Other

Total

Elimination

Consolidated

Net sales(1) External customers(2) Intersegment(Note)

1.

Core products of respective businesses:
Wacoal business (Domestic): innerwear (foundation, lingerie, nightwear and children’s innerwear), outerwear, sportswear,
hosiery, etc.
Wacoal business (Overseas): innerwear (foundation, lingerie, nightwear and children’s innerwear), outerwear, sportswear,
other textile-related products, etc.
Peach John business:
innerwear (foundation, lingerie and nightwear), outerwear, and other textile-related products,
etc.
Other:
innerwear (foundation, lingerie, nightwear and children’s innerwear), outerwear, sportswear,
other textile-related products, mannequins, construction of stores and interior design, etc.

2.

Matters regarding Changes to Operating Segments:
A portion of our Peach John brand product sales in China, which were previously recorded under the “Wacoal Business(Overseas)” segment, have been recorded under our “Peach John Business” segment since the previous fiscal year. The
segment information for the previous consolidated cumulative second quarter has been prepared based on the segments
reported after this change.

- 12 -

(ii)Segment Information by Region

Previous Consolidated Cumulative Second Quarter (From April 1, 2020 to September 30, 2020)(Millions of Yen)Japan

Asia/Oceania

Europe/N.A.

Consolidated

Net sales
External customers
Distribution ratio

52,967
72.4%

7,608
10.4%

12,58017.2%

73,155100.0%

Operating income (loss)

1,590

338

(652)

1,276

Current Consolidated Cumulative Second Quarter (From April 1, 2021 to September 30, 2021)(Millions of Yen)

Net sales
External customers
Distribution ratio

Japan

Asia/Oceania

Europe/N.A.

Consolidated

54,22662.0%

10,992
12.6%

22,201
25.4%

87,419100.0%

2,134

3,976

Operating income
1,462
380
(Note) 1. Countries or areas are classified according to geographical proximity.
2. Main countries and areas belonging to classifications other than Japan:
Asia/Oceania: Asian countries and Australia
Europe/N.A.: North America and European countries
3. Sales in respect of consolidated companies are categorized by location.

(6)

Status of Sales

Type of productFoundationand lingerie
Innerwear Nightwear
Children’s
underwear
Subtotal
Outerwear/Sportswear
Hosiery
Other textile goods andrelated products
Other
Total

Previous Consolidated Cumulative
Second Quarter(From April 1, 2020 to
September 30, 2020)
AmountDistribution Ratio
Millions of Yen%

Current Consolidated Cumulative
Second Quarter
Increase/(Decrease)(From April 1, 2021 toSeptember 30, 2021)
AmountDistribution Ratio
AmountRatio
Millions of Yen%
Millions of Yen%

59,11480.8

72,417

82.8

13,303

22.5

3,049

4.2

3,103

3.6

54

1.8

348

0.5

388

0.4

40

11.5

62,51185.5

75,90886.8

13,397

21.4

4,134
401

5.6
0.5

5,126
478

5.9
0.5

992
77

24.0
19.2

2,632

3.6

2,608

3.0

(24)

(0.9)

3,477
73,155

4.8
100.0

3,299
87,419

3.8
100.0

(178)
14,264(5.1)
19.5- 13 -