[Translation]
Consolidated Business Results for the Third Quarter of the Fiscal Year Ending March 31, 2017
[U.S. GAAP]
January 31, 2017
Listed Company: Wacoal Holdings Corp.
Code Number: 3591
(URL: http://www.wacoalholdings.jp/)
Representative: Position: President and Representative Director
Name: Yoshikata Tsukamoto
For Inquiries: Position: General Manager of Corporate Planning
Name: Akira Miyagi

Stock Exchange: Tokyo

Tel: +81 (075) 682-1010

Scheduled quarterly report submission date:February 10, 2017
Scheduled dividend payment start date:
Supplementary materials regarding quarterly business results:
None
Explanatory meeting regarding quarterly business results:
None(Amounts less than 1 million yen have been rounded)1.

Third Quarter of the Fiscal Year Ending March 31, 2017 (April 1, 2016 – December 31, 2016)(1)

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

Net Sales

Millions of Yen%

Third Quarter ended
149,019 (3.2)
December 31, 2016
Third Quarter ended
154,017
7.0
December 31, 2015
(Note)
Quarterly comprehensive income:Third Quarter ended
December 31, 2016
Third Quarter ended
December 31, 2015
(2)

Operating Income

Income Before
Income Taxes andEquity in Net Incomeof AffiliatedCompanies

Net Income
Attributable to
Wacoal Holdings
Corp.

Millions of Yen

Millions of Yen

Millions of Yen

%

%

%

11,175 (12.0)

16,543

16.4

12,08520.5

12,692

14,213

66.4

10,027

78.1

109.9

9,834 million yen (decrease of 3.0%) for the third quarter ended
December 31, 2016
10,138 million yen (decrease of 48.3%) for the third quarter ended
December 31, 2015

Net Income
Attributable to
Wacoal Holdings
Corp. Per Share

Diluted Net Income
Attributable to
Wacoal Holdings
Corp. Per Share

Yen

Yen

86.73

86.47

71.19

70.99

Consolidated Financial Condition

As of December 31, 2016
As of the end of Fiscal
Year (March 31, 2016)

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Total Assets

Total Equity(Net Assets)

Total
Shareholders’EquityTotal
Shareholders’Equity Ratio

Shareholders’Equity Per Share

Millions of Yen

Millions of Yen

Millions of Yen%

Yen

294,994

231,951

227,31777.1

1,640.24

292,854229,401

224,37476.6

1,592.90

2.

Status of Dividends

End of First
Quarter
Fiscal Year Ended March 31, 2016
Fiscal Year Ending March 31, 2017
Fiscal Year Ending March 31, 2017
(Estimates)(Note)
3.

Annual Dividend
End of Second End of Third
Quarter
QuarterYear-End

Total

Yen

Yen

Yen

Yen

Yen

–
–

–
–

–
–

33.00

33.00

33.00

33.00

Revision of estimated dividends announced during the latest quarter: No
Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2017 (April 1, 2016 - March 31,
2017)(% indicates decrease from the previous fiscal year)

Net Sales

Millions of Yen %Annual(Note)

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198,000 (2.4)

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 %Yen

10,500 (24.3)

11,00078.94

14,500

(3.1)

(1.4)

Revision of forecast of consolidated business results announced during the latest quarter: No

Notes(1)

Changes in significant subsidiaries in the consolidated cumulative third 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)
Third Quarter ended
December 31, 2016
(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 third quarter (third
quarter ended December 31):

Fiscal Year ended
March 31, 2016

143,378,085 shares

143,378,085 shares

4,790,075 shares

2,519,350 shares

139,340,406 shares

140,839,694 shares*Notes on Implementation of Quarterly Review ProceduresThis summary of quarterly financial results is not subject to the quarterly review procedures based on the Financial
Instruments and Exchange Law. The review procedures for the quarterly financial statements based on the Financial
Instruments and Exchange Law had not been completed at the time of disclosure of this summary of quarterly financial
results.

*Cautionary Statement regarding Forecast of Business Results

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.

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Table of Contents for Attached Materials
1.

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

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

Qualitative Information regarding Consolidated Financial Condition -------------------------------------------------- 5(3)

Qualitative Information regarding Forecast of Consolidated Business Results --------------------------------------- 6

2.

Matters Concerning Summaries (Notes) ------------------------------------------------------------------------------------ 6(1)

Summary of Changes in Significant Subsidiaries during the Current Consolidated Cumulative Quarter ----------- 6(2)

Application of Simplified Accounting Methods and Specific Accounting Methods ---------------------------------- 6(3)

Summary of Changes in Accounting Principles --------------------------------------------------------------------------- 6

3.

Consolidated Quarterly Financial Statements ------------------------------------------------------------------------------ 7(1)

Consolidated Quarterly Balance Sheets ------------------------------------------------------------------------------------- 7(2)

Consolidated Quarterly Statements of Income ----------------------------------------------------------------------------- 9(3)

Consolidated Quarterly Statements of Comprehensive Income --------------------------------------------------------- 9(4)

Consolidated Quarterly Statements of Cash Flows ---------------------------------------------------------------------- 10(5)

Notes to Consolidated Quarterly Financial Statements ----------------------------------------------------------------- 11(Notes on Going Concern) -------------------------------------------------------------------------------------------------- 11(Notes on Significant Changes in the Amount of Total Shareholders’ Equity) -------------------------------------- 11(Segment Information) ------------------------------------------------------------------------------------------------------- 11(6)

Status of Sales ---------------------------------------------------------------------------------------------------------------- 12-1-

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1.

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

Qualitative Information regarding Consolidated Business Results(i)Performance Overview of the Nine Months ended December 31, 2016

Our group entered the first year of our three-year mid-term plan (from fiscal year 2017 to fiscal year 2019). While
we make efforts to improve profitability and business efficiency in line with the five elements of the basic policies, whichare (i) to improve the infrastructure of our group management base as a foundation, (ii) to ensure profits from our domestic
business, (iii) to achieve further growth of our overseas business, (iv) to achieve group synergies through collaboration andto strengthen our competitiveness, and (v) to attempt to expand our business portfolio, we will aim to improve corporate
value by implementing an efficient capital policy.
Under these initiatives, sales from our domestic business as shown in our consolidated business results for the ninemonths ended December 31, 2016 remained unchanged from the corresponding period of the previous fiscal year, due to a
slowdown in our wholesale business of women’s innerwear products during the current third period (from October toDecember) as compared to the first half of the current fiscal year mainly at department stores and general merchandise
stores, despite the favorable performance of our directly managed stores of Wacoal Corp., our core operating entity in ourdomestic business. Further, although performance in the United States and Europe has steadily improved and sales in
China remained unchanged from the corresponding period of the previous fiscal year, sales from our overseas businessdecreased due to the impact of currency fluctuations. As a result, our group’s overall sales fell below the results for thecorresponding period of the previous fiscal year. In terms of profit, overall operating income fell below the results for thecorresponding period of the previous fiscal year, due to an increase in selling, general and administrative expenses which
resulted from our domestic business and costs accrued in connection with the reorganization proceedings by a subsidiarylocated in France. Nevertheless, operating income still exceeded our initial plan. Income before income taxes and equity
in net income of affiliated companies largely exceeded the results for the corresponding period of the previous fiscal year
as a result of gain on sales of property, plant and equipment which was recorded during the first quarter of the current fiscal
year.
Net sales:

149,019 million yen(a decrease of 3.2% as compared to the corresponding period of theprevious fiscal year)

Operating income:

11,175 million yen(a decrease of 12.0% as compared to the corresponding period of theprevious fiscal year)

Income before income
taxes and equity in net
income of affiliatedcompanies:

16,543 million yen(an increase of 16.4% as compared to the corresponding period of theprevious fiscal year)

Net income attributable to
Wacoal Holdings Corp.:

12,085 million yen(an increase of 20.5% as compared to the corresponding period of theprevious fiscal year)(ii)

Business Overview of Our Operating Segmentsa.

Wacoal Business (Domestic)In our domestic business, with respect to our Wacoal brand business, robust sales were driven by the sales of ourbrassieres and girdles providing both comfort and functionality, which received support from consumers. Overall sales,
however, remained unchanged from the corresponding period of the previous fiscal year, as a result of the poor
performance of sales of autumn/winter underwear and luxury products.
With respect to our Wing brand business, shop sales showed steady performance as a result of the continued
strong sales of our core brassieres products. Overall sales, however, fell below the results for the corresponding period of
the previous year due to the influence of inventory adjustments at shops.
With respect to retail business, while the number of shop visitors at our existing stores continued to decrease, sales
from our directly managed retail store, “AMPHI”, exceeded the results for the corresponding period of the previous fiscal
year as a result of the promotion efforts by individual stores which achieved a higher average sale per customer. Further,-2-

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the broad rollout of common merchandise of our brand products for directly managed stores, as well as the efforts to review
the shops to be opened up/closed have led to the expansion of sales and improvement of profits. As a result, overall sales
exceeded the results for the corresponding period of the previous fiscal year.
With respect to wellness business, sales of sport brassieres under our sports conditioning wear brand “CW-X”
have increased constantly, while sales of functional tights, our main products, have been struggling since autumn. In
addition to the foregoing circumstances, due to the poor performance of our products for daily use and the weak
performance of exports to the United States, overall sales fell below the results for the corresponding period of the previous
fiscal year.
With respect to catalog sales business, although sales from our website exceeded the results for the corresponding
period of the previous fiscal year as a result of an increase in the number of internet users visiting our website resulting
from renewal of our site by improving convenience for smartphone users and implementation of a monthly sales promotion
plan using social networking services, sales from our catalogs showed weak performance for the whole season. As a result,overall sales fell below the results for the corresponding period of the previous fiscal year.
With respect to Ai Co., Ltd., while sales from the underwear business expanded through new shop openings,
overall sales remained unchanged from the corresponding period of the previous fiscal year. Although our core swimwear
business has been struggling at its peak season, it compensated its poor performance by extending the operating length ofseasonal shops and increasing sales on e-commerce websites.
In summary, overall sales attributable to our “Wacoal Business (Domestic)” segment remained unchanged fromthe corresponding period of the previous fiscal year due to decreased sales from Wacoal Corp., our core operating entity.
In terms of profit, our operating income also largely decreased from the results for the corresponding period of the previous
fiscal year, due to an increase in retirement benefits costs and a higher tax under pro-forma basis taxation following tax
reforms at Wacoal Corp., as well as an increase in expenses incurred by the opening for the business at the New Kyoto
Building.
Net sales:

91,018 million yen(a decrease of 1.3% as compared to the corresponding period of theprevious fiscal year)

Operating income:

7,243 million yen(a decrease of 13.9% as compared to the corresponding period of theprevious fiscal year)b.

Wacoal Business (Overseas)

With respect to Wacoal International Corp. (U.S.), robust sales were driven by the steady performance of sales(mostly of our core Wacoal brand products) at department stores in the United States, as well as increasing sales fromoverall e-commerce business, including sales on our e-commerce websites. As a result, overall sales on a local currency
basis exceeded the results for the corresponding period of the previous fiscal year, but overall sales on a yen converted
basis fell largely below the results for the corresponding period of the previous fiscal year. In terms of profit, sales profit
rate improved, due to the decrease of discounts at shops and the curtailment of manufacturing costs achieved through our
pricing policy. However, in addition to the foregoing circumstances, due to increases in labor costs, in spite of our efforts
to reduce PR-related expenses, operating income fell below the results for the corresponding period of the previous fiscal
year.
With respect to Wacoal Europe, in the United Kingdom, sales from specialty stores and sales through e-commerce
websites showed favorable performance, while sales at department stores showed weak performance. In the Eurozone area,
sales of the products of existing brands continued to show a steady trend, except for certain impacts of the sale of certain
business lines in connection with the reorganization proceedings. At the same time, sales in North America and Eurozone
countries were inflated by the influence of the weak Sterling pound. As a result, total sales on a local currency basis(Sterling pound) exceeded the results for the corresponding period of the previous fiscal year, but sales on a yen converted
basis fell largely below the results for the corresponding period of the previous fiscal year. In terms of profit, we recorded
an operating loss due to costs incurred for the reorganization proceedings by our subsidiary up to the second quarter.
With respect to our business in China, sales at department stores, our main business, showed steady performanceas to the existing stores, but the number of stores decreased mainly in the inland area. As a result, overall sales, which werealso impacted by the temporary suspension of shop openings and the closure of underperforming shops for “LAROSABELLE”, our brand targeting the middle-class market, remained unchanged from the corresponding period of theprevious fiscal year, but overall sales on a yen converted basis largely fell below the results for the corresponding period of-3-

tk-639342

the previous fiscal year. In terms of profit, operating income largely fell below the results for the corresponding period of
the previous fiscal year, due to an increase in labor costs, in addition to a decline in the sales profit rate resulting fromin-store discounts.
As a result of the above, overall sales and operating income, on a yen converted basis, attributable to our “Wacoal
Business (Overseas)” segment both fell below the results for the corresponding period of the previous fiscal year.
Net sales:

36,355 million yen(a decrease of 7.6% as compared to the corresponding period of theprevious fiscal year)

Operating income:

2,853 million yen(a decrease of 21.5% as compared to the corresponding period of theprevious fiscal year)c.

Peach John BusinessWith respect to Peach John Co., Ltd., sales from our domestic directly managed retail stores (mainly in existing
shops) showed steady performance, and sales through third-party e-commerce websites also largely expanded. Sales fromour mail-order catalogues, however, largely fell below the results for the corresponding period of the previous fiscal year,
due to the impact of a decrease in the number of existing customers, offsetting the higher number of users who visited ourrenovated website and the gradual increase in new customers. On the other hand, with respect to our overseas subsidiaries,
our directly managed retail stores in Hong Kong enjoyed strong sales, and sales in China also largely increased.
As a result of the above, overall sales of our “Peach John Business” segment remained unchanged from thecorresponding period of the previous fiscal year. In terms of profit, operating income largely exceeded the results for thecorresponding period of the previous fiscal year, due to the contribution of the reduction of expenses for catalog production
and catalog delivery as well as the shift to profitability of our subsidiaries in China, in addition to the improvement of thesales profit rate resulting from the impact of currency fluctuations.
Net sales:

8,450 million yen(an increase of 0.3% as compared to the corresponding period of theprevious fiscal year)

Operating income:

513 million yen(an increase of 16.6% as compared to the corresponding period of theprevious fiscal year)

d.

Other

With respect to Lecien Corporation (“Lecien”), although sales from our core intimate apparel division andmaterial division showed steady performance, overall sales from Lecien fell below the results for the corresponding periodof the previous fiscal year due to the weak performance of the art & hobby division. In terms of profit, our operating
income significantly improved from the corresponding period of the previous fiscal year, during which we recorded an
operating loss, due to much higher sales profit rate resulting from the impact of currency fluctuations, as well as theincrease in delivery prices of products and a higher percentage of our sales coming from high margin products.
As for Nanasai Co., Ltd. (“Nanasai”), our sales from the rental business fell below the results for thecorresponding period of the previous fiscal year, as we could not offset the influence of store closures by our existingclients with special events and other short-term business activities. As for our construction business, the number of orders
decreased due primarily to the postponement of commencement of scheduled remodeling projects and new store openings.
In addition, sales from our sales business largely decreased as compared to the previous fiscal year, during which we
received a higher number of large-scale orders. As a result, overall sales largely fell below the results for thecorresponding period of the previous fiscal year. In terms of profit, we recorded an operating loss, due to a lower sales
profit rate as a result of a decrease of our sales as well as a higher percentage of our sales coming from our construction
business.
As a result of the above, with respect to the overall sales and operating income attributable to our “Other” segment,
overall sales fell below the results for the corresponding period of the previous fiscal year, while operating income largely
exceeded the results for the corresponding period of the previous fiscal year.

-4-

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(2)Net sales:

13,196 million yen(a decrease of 5.9% as compared to the corresponding period of theprevious fiscal year)

Operating income:

566 million yen(an increase of 181.6% as compared to the corresponding period of theprevious fiscal year)

Qualitative Information regarding Consolidated Financial Condition(i)

Assets, Liabilities and Total Shareholders’ Equity

Our total assets as of the end of the current consolidated third quarter were 294,994 million yen, an increase of
2,140 million yen from the end of the previous fiscal year, mainly due to increase in cash and cash equivalents as well as
investments.
Our total liabilities were 63,043 million yen, a decrease of 410 million yen from the end of the previous fiscal year,
due to decrease in short-term bank loans as well as accrued payroll and bonuses.
Total Wacoal Holdings Corp. shareholders’ equity was 227,317 million yen, an increase of 2,943 million yen fromthe end of the previous fiscal year, due to an increase in retained earnings.
As a result of the above, our total shareholders’ equity ratio as of the end of the current consolidated third quarter
was 77.1%, an increase of 0.5% from the end of the previous fiscal year.
(ii)

Cash Flows

Cash and cash equivalents as of the end of the consolidated third quarter of the current fiscal year were 40,906
million yen, an increase of 6,847 million yen from the end of the previous fiscal year.
(Cash Flow Provided by Operating Activities)
Cash flow provided by operating activities was 16,751 million yen, an increase of 4,751 million yen as comparedto the corresponding period of the previous fiscal year, after adjustments for changes in assets and liabilities to our net
income of 12,239 million yen plus adjustments for depreciation and amortization and deferred income taxes.
(Cash Flow Used in Investing Activities)
Cash flow used in investing activities was 1,178 million yen, a decrease of 4,833 million yen as compared to thecorresponding period of the previous fiscal year, due to capital expenditures and payments to acquire intangible assets,
despite the proceeds from sales of property, plant and equipment.
(Cash Flow Used in Financing Activities)
Cash flow used in financing activities was 8,774 million yen, an increase of 3,349 million yen as compared to thecorresponding period of the previous fiscal year, due to cash dividend payments and repurchase of treasury stock.

-5-

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(3)Qualitative Information regarding Forecast of Consolidated Business Results

We have not further revised our forecast of consolidated business results for the fiscal year ending March 31, 2017,
which was revised on October 31, 2016.
2.

Matters Concerning Summaries (Notes)(1)

Summary of Changes in Significant Subsidiaries during the Current Consolidated Cumulative Quarter:Not applicable.

(2)

Application of Simplified Accounting Methods and Specific Accounting Methods:
Not applicable.

(3)

Summary of Changes in Accounting Principles:
Not applicable.

-6-

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3.

Consolidated Quarterly Financial Statements(1)

Consolidated Quarterly Balance SheetsI.

Accounts

Previous Fiscal Year
as of March 31, 2016

(Assets)

Millions of Yen

Current Consolidated
Third Quarteras of December 31, 2016
Millions of Yen

Increase/(Decrease)
Millions of Yen

Current assets:
Cash and cash equivalents

34,05940,906

6,847Time deposits

2,131

2,447

316

Marketable securities

1,880

1,952

72

Notes and accounts receivable
Allowance for returns anddoubtful receivables
Inventories

26,93623,069(3,867)(2,229)44,445(2,699)43,417(470)(1,028)Deferred income taxes

3,832

3,539

(293)

Other current assets

5,797

4,301

(1,496)

116,851

116,932

81

Land

21,677

21,526(151)

Buildings and building improvements

65,05672,352

7,296

Machinery and equipment

17,552

17,544(8)

Total current assets
II. Property, plant and equipment:

Construction in progress

5,419

336

(5,083)

109,704

111,758

2,054(55,766)(56,879)(1,113)53,93854,879941

Investments in affiliated companies

20,71319,991(722)

Investments

56,021

59,7603,739

Goodwill

17,911

16,287(1,624)

Other intangible assets

12,112

11,733(379)

Prepaid pension expense

8,145

8,459

314

Deferred income taxes

1,036

1,038

2

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

Other
Total other assets
Total assets

6,127

5,915

(212)

122,065

123,183

1,118

292,854294,994

2,140

-7-

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I.

Accounts

Previous Fiscal Year
as of March 31, 2016

(Liabilities)

Millions of Yen

Current Consolidated
Third Quarteras of December 31, 2016
Millions of Yen

Increase/(Decrease)
Millions of Yen

Current liabilities:
Short-term bank loans

11,7599,993(1,766)

Trade notes

1,431

1,622

191

Trade accounts

12,017

11,525(492)

Notes and accounts payable:

Other payables
Accrued payroll and bonuses

6,106

5,523

(583)

19,554

18,670

(884)

7,152

5,523

(1,629)

Income taxes payable

711

3,299

2,588

Other current liabilities

5,167

5,973

806

Total current liabilities

44,34343,458(885)

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

1,703

1,669

(34)

15,58816,345

757

1,819

1,571

(248)

Total long-term liabilities

19,11019,585475

Total liabilities

63,45363,043(410)

13,26013,260-

Other long-term liabilities(Equity)I.

Common stock

II. Additional paid-in capital

29,686

29,71024

III. Retained earnings
IV. Accumulated other comprehensive income(loss):
Foreign currency translation adjustments

162,196

169,628

7,432

5,177

402

(4,775)

Unrealized gain on securities

17,966

20,8792,913

Pension liability adjustments(1,035)(1,175)(140)

V. Treasury stock, at cost
Total Wacoal Holdings Corp.
shareholders’ equity
VI. Noncontrolling interests(2,876)(5,387)(2,511)

224,374

227,317

2,943

5,027

4,634

(393)

Total equity

229,401

231,951

2,550

Total liabilities and equity

292,854294,994

2,140

-8-

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(2)Consolidated Quarterly Statements of Income

Accounts

I.

Net Sales

Previous Consolidated
Cumulative Third Quarter(From April 1, 2015
to December 31, 2015)
Millions of Yen%

Current Consolidated
Cumulative Third Quarter(From April 1, 2016
to December 31, 2016)
Millions of Yen%

Increase/(Decrease)
Millions of Yen

154,017100.0

149,019100.0(4,998)

Cost of sales

71,367

46.4

69,27746.5(2,090)

Selling, general and administrative expenses

69,95845.4

68,56746.0(1,391)

Total operating costs and expenses

141,325

91.8

137,84492.5(3,481)

Operating income

12,692

8.2

11,175

7.5(1,517)

II. Operating costs and expenses

III. Other income (expenses):
Interest income

113

102

(11)

Interest expense

(55)

(25)

30

Dividend income
Gain or loss on sales or exchange ofmarketable securities and investments - net
Valuation loss on marketable securities andinvestments - net
Gain on sales of property, plant andequipment
Other – net

1,017

1,127

110

90

458

368

(20)

(2)

18

-

3,770

3,770

376

(62)

(438)

Total other income (expenses)
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

1,521

1.0

5,368

3.6

3,847

14,213

9.2

16,543

11.1

2,330

4,900

3.2

5,556

3.7

656

9,313

6.0

10,987

7.4

1,674

1,001

0.7

1,252

0.8

251

10,314

6.7

12,239

8.2

1,925

(287)

(0.2)

(154)

(0.1)

133

10,027

6.5

12,0858.1

2,058

Net income
Net income attributable to noncontrollinginterests
Net income attributable to Wacoal Holdings
Corp.

(3)

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 Third Quarter(From April 1, 2015
to December 31, 2015)
Millions of Yen

Current Consolidated
Cumulative Third Quarter(From April 1, 2016
to December 31, 2016)
Millions of Yen

10,314

12,239

1,925

Increase/(Decrease)
Millions of Yen(1,507)(5,186)(3,679)Unrealized gain on securities

1,811

2,921

1,110

Pension liability adjustments

(480)

(140)

340

Other comprehensive income(176)(2,405)(2,229)Comprehensive income
Comprehensive income attributable tononcontrolling interests
Comprehensive income attributable to
Wacoal Holdings Corp.

10,138

9,834

(304)

(264)

249

513

9,874

10,083209-9-

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(4)Consolidated Quarterly Statements of Cash Flows

Accounts

I.

Previous Consolidated Cumulative
Third Quarter(From April 1, 2015
to December 31, 2015)
Millions of Yen

Operating activities
1. Net income
2. Adjustments to reconcile net income to net cash
provided by operating activities(1) Depreciation and amortization(2) Provision for returns and doubtful receivables - net(3) Deferred income taxes(4) Gain or loss on sales or disposal of property, plant andequipment - net(5) Gain or loss on sales or exchange of marketablesecurities and investments – net(6) Valuation loss on marketable securities and investments– net(7) Equity in net income of affiliated companies,
less dividends(8) Changes in assets and liabilities
Decrease in notes and receivables
Increase in inventories
Decrease (increase) in other current assets
Decrease in notes and accounts payable
Decrease in liability for termination and retirement
benefits
Increase (decrease) in other liabilities(9) Other
Net cash provided by operating activities

II.
1.
2.
3.

Investing activities
Increase in time deposits
Decrease in time deposits
Proceeds from sales and redemption of marketablesecurities
4. Payments to acquire marketable securities
5. Proceeds from sales of property, plant and equipment
6. Capital expenditures
7. Payments to acquire intangible assets
8. Proceeds from sales of investments
9. Payments to acquire investments
10. Other
Net cash used in investing activities

III.
1.
2.
3.
4.
5.
6.
7.

Financing activities
Net increase in short-term bank loans
Proceeds from issuance of long-term debt
Repayment of long-term debt
Repurchase of treasury stock
Dividends paid on common stock
Dividends paid to noncontrolling interests
Other
Net cash used in financing activities
IV. Effect of exchange rate changes on cash and cash
equivalents
V. Net increase (decrease) in cash and cash equivalents
VI. Cash and cash equivalents, beginning of period
VII. Cash and cash equivalents, end of period- 10 -

tk-639342

Current Consolidated Cumulative
Third Quarter(From April 1, 2016
to December 31, 2016)
Millions of Yen

10,314

12,239

3,508
468
1,967

3,686
459
118

(69)

(3,575)

(90)

(458)

20

2

(246)

(751)

2,700
(1,920)(1,226)(1,258)

3,237
(274)
1,312
(1,352)(1,849)

(515)

(493)
174
12,0002,303
320
16,751(2,223)
2,444
1,126

(2,456)
2,165
692

(534)
366
(4,813)(1,107)
237
(522)
(985)
(6,011)

(295)
3,553
(3,905)(1,371)
833
(272)
(122)
(1,178)3,580(4,570)(4)(4,225)(206)
0(5,425)(1,391)250(293)(2,548)(4,648)(167)
23(8,774)

(34)

48

530
38,41038,9406,847
34,05940,906

Additional Cash Flow Information
Cash paid for:
Interest
Income taxes
Noncash investing activities
Acquisition of fixed assets by assuming payment
obligation

(5)

56
5,297

25
2,254

617

958

Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Total Shareholders’ Equity)
During the current consolidated cumulative third quarter, we purchased treasury stock of 2,300 thousand sharesfrom the market in the aggregate price of 2,544 million yen. As a result, the balance of treasury stock at the end of thecurrent consolidated third quarter was 5,387 million yen, an increase of 2,511 million yen from the end of the previous
fiscal year.
(Segment Information)(i)

Operating Segment Information

Previous Consolidated Cumulative Third Quarter (From April 1, 2015 to December 31, 2015)(Millions of Yen)
Wacoal
Wacoal businessbusiness(Domestic)(Overseas)

Peach Johnbusiness

Other

Total

Elimination

Consolidated

Net sales(1) External customers

92,21339,3558,424

14,025

154,017-

154,017(2) Intersegment

1,222

6,658

575

4,554

13,009(13,009)-

Total

93,43546,013

8,999

18,579167,026(13,009)

154,017

Operating income

8,415

3,636

440

201

12,692-

12,692Current Consolidated Cumulative Third Quarter (From April 1, 2016 to December 31, 2016)(Millions of Yen)
Wacoal
Wacoal businessbusiness(Domestic)(Overseas)

Peach Johnbusiness

Other

Total

Elimination

Consolidated

Net sales
91,01836,3558,450

13,196

149,019-

149,019

908

7,490

754

4,422

13,574(13,574)-

Total

91,926

43,8459,204

17,618

162,593(13,574)

149,019

Operating income

7,243

2,853

513

566

11,175-

11,175(1) External customers(2) Intersegment(Note)

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,
hosiery, 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, othertextile-related products, mannequins, construction of stores and interior design, etc.

- 11 -

tk-639342

(ii)Segment Information by Region

Previous Consolidated Cumulative Third Quarter (From April 1, 2015 to December 31, 2015)(Millions of Yen)

Net sales
External customers
Distribution ratio
Operating income

Japan

Asia/Oceania

Europe/N.A.

Consolidated

114,391
74.3%

13,5588.8%

26,06816.9%

154,017100.0%

8,899

1,607

2,186

12,692Current Consolidated Cumulative Third Quarter (From April 1, 2016 to December 31, 2016)(Millions of Yen)

Net sales
External customers
Distribution ratio
Operating income(Note)

1.
2.

3.

(6)

Japan

Asia/Oceania

Europe/N.A.

Consolidated

112,36775.4%

14,4779.7%

22,17514.9%

149,019100.0%

8,072

1,893

1,210

11,175Countries or areas are classified according to geographical proximity.
Main countries and areas belonging to classifications other than Japan:
Asia/Oceania: various countries of East Asia, Southeast Asia and West Asia, and Australia
Europe/N.A.: North America and European countries
Sales in respect of consolidated companies are categorized by location.

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
Third Quarter(From April 1, 2015 to
December 31, 2015)
AmountDistribution Ratio
Millions of Yen%
114,84974.6

110,589

74.2(4,260)

(3.7)

7,470

4.9

7,233

4.9

(237)

(3.2)

1,086

0.7

1,151

0.8

65

6.0

123,405

80.2

118,97379.9(4,432)(3.6)

14,928
1,711

9.7
1.1

13,467
1,724

9.0
1.2

(1,461)
13

(9.8)
0.8

5,582

3.6

7,032

4.7

1,450

26.0

8,391
154,017

5.4
100.0

7,823
149,019

5.2
100.0

(568)
(4,998)

(6.8)
(3.2)

- 12 -

tk-639342

Current Consolidated Cumulative
Third Quarter
Increase/(Decrease)(From April 1, 2016 to
December 31, 2016)
AmountDistribution Ratio
AmountRatio
Millions of Yen%
Millions of Yen%