VISION 2030
Medium-Term Management
Plan Briefing Session Material(FY2023 to FY2025)
3 June 2022
Wacoal Holdings Corp.

11. The Mission We Should Fulfill in Today's Society
2. Reflecting On Our Previous Medium-term Management Plan:
On Formulating VISION 2030 and a Medium-term Management Plan

3. VISION 2030, Our Medium- to Long-term Management Strategy Framework
4. Medium-term Management Strategy (Mar. 2023 Term to Mar. 2025 Term)
5. Financial Strategy (Mar. 2023 Term to Mar. 2025 Term)
6. How We Must Change Our Ways

2

First lingerie show held (1952)

During the post-WWII chaos, the women of the world lost their sparkle and their former beauty.
For Japan to recover from the defeat as swiftly as possible and for the people to rekindle
hopefulness in their lives, it was crucial for the women to regain vitality. (Koichi Tsukamoto,
Founder)3

Values Only the Wacoal Group Can Provide in These Increasingly Uncertain Times

Contribute to the enrichment of the lives of all people
around the world
Help people achieve self-realization free fromexternal aesthetics or uniform perspective

Strive to resolve various social, environmental, andhuman rights issues
4We have changed the framework of our management philosophy forthe first time since our founding
With our founding spirit at the core, we have defined the mission weshould accomplish in modern society＜Our Promise＞
We will contribute to society by helping
women to express their beauty.

WACOAL empowers people with theconfidence that comes from looking andfeeling their best.
As a global leader, we welcome
everyone into our caring community built
on mutual respect, diversity, andinclusion.

MissionFounding
Principles

The WACOAL Way

5＜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 of the times
Conduct business in a fair manner with a forward focus
Build a better Wacoal through better human resources
Fear not failure and boast not of successMission Fulfill in Today's Society

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.
At WACOAL, we value each person as an individual and believe in nurturing the
body and mind so everyone can be their best.
When people with different backgrounds are empowered to come together andshare ideas freely, we as a society will achieve true harmony.
By continuing to evolve, WACOAL leads the way to a world where kindness,
inclusivity, and mutual respect are the standards, and the future is full of promisefor everyone.

6Formulating VISION 2030,
our medium- to long-term
management strategy framework,
to create new value
VISION 2030, Our
Medium- to Longterm Management
Strategy Framework
Medium-Term Management
Plan Briefing Session Material(FY2023 to FY2025)

Founding
Principles

7Management Strategy・Financial Strategy

Management Strategy
Material Issues
Guidelines for the Actions of
Officers and Employees

MissionWACOAL empowers people with theconfidence that comes from looking andfeeling their best.
As a global leader, we welcome
everyone into our caring community
built on mutual respect, diversity, andinclusion.

1. The Mission We Should Fulfill in Today's Society
2. Reflecting On Our Previous Medium-term Management Plan:
On Formulating VISION 2030 and a Medium-term Management Plan

3. VISION 2030, Our Medium- to Long-term Management Strategy Framework
4. Medium-term Management Strategy (Mar. 2023 Term to Mar. 2025 Term)
5. Financial Strategy (Mar. 2023 Term to Mar. 2025 Term)
6. How We Must Change Our Ways

8

Summary of Previous Medium-Term Management Plan
＜Consolidated net sales・Operating Income（Billion of yen ）＞186.8

Operating income ratio

172.9

152.2

6.6

▲1.1

5.0

FY2020

FY2021

FY2022

initialplan
14.0

FY2022
initial plan

3.6%

ー

2.9%

6.7%

3.5

7.0

4.6

12.0

ROE

1.6%

3.3%

2.1%

6.0%

Cash generated（Net income※＋Depreciation cost

27.8

10.8

14.4

3-year 70.0 or more

13.6

2.6

3.5

20.0

60

40

50

ー

Net income attributable to
Wacoal Holdings Corp.

＋Reduction in strategic stockholdings）

Reduction in strategic stockholdings（Book Value as of the end of FY2019）

Dividends Per Share (yen)9initialplan
210.0※Estimated in real terms without taking into account impairment losses of intangible assets, securities, or valuation gains and losses

Understanding the Current Situation: Reflecting On Our Previous Medium-termManagement Plan

Our lack of ability to respond in unexpected situations was revealed
We must transform our corporate structure into one that is more resilientand can cope with intense environmental changes
Primary Policy 1. Show Strong Growth Domestically and Internationally

Acquired IO, Inc. (LIVELY) to strengthen our e-commerce business in the USAs regulations eased and consumer spending has recovered, Europe and the US hit record levels

The pandemic clarified the issues that Wacoal's business structures havePrimary Policy 2. Verify Unprofitable Businesses' Future Potential
and Carry Out Structural Reform

Original plan

CAGR 4.0%×

Peach John's structural reform led to it moving back into a highly profitable position

The business environment surrounding three of our domestic subsidiaries worsened due to the pandemicWe started to structurally reform each company via downsizing, factory closures, etc.

Primary Policy 3. Strengthen Efforts to Create Social Value

Wacoal business (overseas) segment<Consolidated sales / Operating profits(Units: Billions of yen)>

▲

61.6
59.7
53.1

49.8

41.4

〇



We disclosed medium- to long-term targets for reducing greenhouse gases

For CSR procurement, we disclosed everything up to the list of factories to which our major overseas

10

affiliates outsource

Mar. 2019 term

Mar. 2020 term

Mar. 2021 term

Mar. 2022 term

Mar. 2022 termUnderstanding the Current Situation: Business Issues
Domestic Business
IssuesOverseas Business
IssuesEliminate the rigid high-cost structure and transform into a
resilient company


Acquire new customers via stronger marketing, develop new value to provide to customers, and create new
businesses
Stabilize management within our domestic subsidiaries, and verify businesses' ability to continue and decide
whether to let them do so or change themFurther increase profitability and continuous growth,
centered on e-commerceRespond to a lag in the LIVELY brand's growth caused by saturation in the US e-commerce market and targeted
advertising regulations
Actively invest in our brands for growth in potentially large markets now emerging, such as India and Germany

Renovate our global supply system to improve productivity

Production and Supply
System Challenges

Sustainability Issues
11Soften the blows from soaring raw material and shipping costs by making production and shipping
operations efficientWork to stabilize factory operations as COVID-19 spreads

Promote co-creation innovation that solves social issues asopportunities for growthStrengthen responses to increasingly severe human rights and environmental issues, such as climate change
Strengthen our ability to respond to change by increasing the number of employees that can clearly define andact on the company's ideal state and mission

Stakeholders' Expectations (Mainly Institutional Investors)

Growth Strategies

Long-term Issues

The Next Mediumterm Plan

12

Our growth strategy was difficult to visualize before,
but policies for increasing our LTV and growing havebeen clearly set forth through CX and brand strategies,
making our long-term strategy easier to understand.

Wacoal's P/B ratio has been below 1x since the 2000s.
This reflects our investors judging that Wacoal was
unable to adequately transform our business model into
what the market demanded in order to respond tochanges in the external environment.
The goals of our next medium-term plan are to improve
our PL and BS and become more efficient, and as aresult, hopefully improve our ROE.

On Formulating Vision 2030 and a Medium-term Management Plan

CreateExpectations

In these uncertain times, the Wacoal Group will clarify the economic and social
value that only we can provide to society and people(Provide greater value / Global growth)×
Respond to
Requests(Improve ROE levels, andfocus on ESGs)

We will strengthen our efforts to meet the capital market's demands for ourcompany and improve our P/B ratio standing of below 1x as soon as possible

×
Commitment(Improve effectiveness /Improve capital efficiency)

13

We will improve the effectiveness of our corporate governance (improve ourcapital efficiency, continuously improve our renumeration system, etc.) totransform our corporate structure into one that is more resilientVISION 2030 and Medium-term Management Plan Initiatives (Overall Picture)
Create Expectations(Provide greater value / Global growth)3-yearMedium-termManagement
Plan

VISION
2030









Respond to Requests × ×Commitment(Improve ROE levels, and focus on ESGs)(Improve effectiveness / Improve capital efficiency)

×

Bring back Wacoal Japan's growth
Strengthen potential for growth in Wacoal's
overseas business
Promote a human resources strategy that
supports growth

Achieve global growth
Provide greater value / Expand our business
areas
Create a culture where diverse humanresources can play active roles

Finish domestic structural reform
Achieve an ROE above capital cost
Strengthen responses to human rights
and environmental issues

Have an operating margin and ROE
around 10%
Solve materialities (material issues)(Strengthen responses to environmental
and social issues)








Disclose the process to achieving our ROE(Reform the revenue structure / Improve
capital efficiency)
Continuously improve the executive
compensation system

Continuously improve the executive
compensation system
Optimize the Board of Directors' member
structure
Optimize the capital structure

Achieve Increased Corporate Value

Create Social Value Unique to Wacoal(Consistently have P/B ratio above 1x / Achieve sustainable growth)(Provide greater value to customers / Solve sustainability issues)

Fulfill the Group's mission: To use our business to achieve a society in which each person can live as themselves
14

1. The Mission We Should Fulfill in Today's Society
2. Reflecting On Our Previous Medium-term Management Plan:
On Formulating VISION 2030 and a Medium-term Management Plan

3. VISION 2030, Our Medium- to Long-term Management Strategy Framework
4. Medium-term Management Strategy (Mar. 2023 Term to Mar. 2025 Term)
5. Financial Strategy (Mar. 2023 Term to Mar. 2025 Term)
6. How We Must Change Our Ways

15

What We Aim For in VISION 2030
Evolve and grow into the global Wacoal Group by utilizing our elevatedminds and quality through beautifying and enriching each individual's body
Medium- to Long-termManagement Strategy Framework

VISION 2030
Management Strategies
Materialities (Material Issues)
Behavioral Guidelines for
Executives and Employees

CreateExpectations

×
Respond to
Requests

 Have an operating margin and ROE around 10%
 Solve materialities (material issues)(Strengthen responses to environmental and social
issues)×
Commitment16

 Achieve global growth Provide greater value / Expand our business areas
 Create a culture where diverse human resources
can play active roles

 Continuously improve the executive compensation
system Optimize the Board of Directors' member structure Optimize the capital structureVISION 2030 Management Strategies
Create New Value from an Innovative Perspective and Achieve Sustainable Growth
VISION 2030

Management Strategies

Business areas (Categories to strengthen moving forward)“Beauty”

Improve domestic
profitability and expand
our business areas

PromoteSustainability
Management

Expand overseas businesses
and transform them into
high-revenue structures

Strengthen the Group's
management capabilities

Shift to more capitalefficient management

17“Comfort”“Health”

BeautyExpandHealthComfortExpandCultivate

ExpandMulti-dimensional and highly
Cultivate individualized sensibility and Cultivate
product quality

We will cultivate and expand the beauty, comfort, and health areas with new
products and services backed by our elevated minds and quality

VISION 2030 Management Strategies

Improve domestic profitability
and expand our business areasGrow steadily in Japan and create new businesses in the health area

Restore our domestic market shares by promoting our CX strategy (Approx. 24% in the Mar. 2021 term ⇒Approx. 30% in the Mar. 2031 term)
Expand the areas we do business in within the beauty, comfort, and health fields (Estimated sales from new
businesses: Approx. 20 billion yen)

Expand overseas businesses
and transform them into
high-revenue structures

PromoteSustainability
Management

Continue expanding in the areas we have entered and grow in the European
and Indian markets

Strengthen digital marketing to acquire new customers, and strengthen CRM to make existing customers
loyal
Strengthen brand investment in new markets (Sales targets: 7 billion yen in the Indian market and 3 billion
yen in the German market)

Strengthen the Group's
management capabilities

Shift to more capitalefficient management

18





Strengthen the Group's corporate governance and develop and utilize diverse
human resources
Establish both domestic and overseas technology, production, and R&D bases



Redefine our quality standards, make sewing factories into smart factories, and pursue production andshipping efficiency

Continuously generate ROE that exceeds capital costOptimize how we distribute value to stakeholders

Work to have a 10% ROE and optimize the capital structureVISION 2030 Business Portfolio[Operating profits]

Strengthen growth andtransform into high-revenue
businesses

12 billion
yen(Overseas businesses)
Innerwear sales

10 billion
yen(Wacoal Japan)
Innerwear sales

Stable growth /Increased revenue

5 billion
yen

Transform into high-revenue
businesses• Reform the cost structure• Deal with unprofitablebusinesses(Peach John)
Innerwear sales(Wacoal Japan)
Non-innerwear sales

Expand businesses in
the health area
(New businesses, M&A)

50 billion
yen(Other businesses)

19• Deal with unprofitable businesses• Reform the cost structure• New M&A

[Sales]100 billionyen

120 billion
yen
VISION 2030
business plan
Actual Mar. 2022
term results

Designate Europe and the US as growth drivers
Planned value for overseas businesses (excl. nonconsolidated companies)
Sales: 100 billion yen; Operating margin: 10%

Increase Wacoal Japan's non-innerwear sales
Try to expand businesses in the health area
(New businesses, M&A)
Sales: 20 billion yen; Operating profits: 10%

Achieve high revenues in our core businesses(Structural reform / Deal with unprofitable businesses)
To secure an operating margins around the 8 - 10% level

Aim to Increase (Domestic) Non-Innerwear Businesses' Sales
Utilize 3D body data, R&D results, and employee ideas, and promote active
M&A and collaboration with other companies;
Strive to continuously provide greater value and achieve discontinuous growth

Non-innerwear
businesses' sales
20 billion yen

Utilize 3D Body Data

Utilize R&D Results

Utilize Employee Ideas

Supervising division:
Innovation Strategy Office

Supervising division: Wacoal Human
Science Research & Development Center

Supervising division: Future Business
Development Office

Data Services• Provide new services to
consumers• Sell systems for companies

Products• Develop new products• Collaborate with othercompanies

Medical and Social Contributions

Customers' Digital Experiences• Conduct joint research andcontribute to progress on breastreconstruction with the Cancer
Institute Hospital and others• Develop technologies andbusinesses overseas• Increase customer experiencevalue• Third-party sales of services

Promote human sciences
research in collaboration
with other companies anduniversities, etc.

Develop a new service fortaking care of one's body

Make practical use of 3D
manufacturing technologythat uses 3D printers, etc.

Develop personalization
services that provide products
tailored to each person's figure

Publicize business ideas andpublicly recruit members todevelop businesses

Develop new businesses tosolve social and health issues

Have the Wacoal Group
employees create and develop
businesses

Create new businesses
that go beyond the existing
management framework

Speed up the implementation through M&A andcollaboration with other companies

Supervising division: Corporate Planning Department
20

VISION 2030 Overseas Business Portfolio (Reprint of Material Published on Feb. 10, 2022)[Operating profits]
3 billionyen

WacoalAmerica

Image of businesses
in VISION 2030
Estimates for theMar. 2022 term

2 billionyen

We are designating Europe and the US as
growth drivers, and our goal is for overseas
businesses (excl. non-consolidated
companies) to achieve 100 billion yen insales and a 10% operating margin

WacoalEurope

Pre-COVID level1 billionyen

Wacoal America; IO, Inc.; and Wacoal Europe haveachieved growth as corporate entities that cangenerate operating margins above 10% and are driving
overall business overseas

WacoalChina

Even Wacoal China, which continues to struggle in its
own area, has been able to regrow through newfoundefforts to attract new customers through its own ecommerce and via other companies' e-commerce

Asia(Other)10 billion
yen [Sales]

21

Intimates Online,
Inc. (IO, Inc.)

20 billion
yen

30 billion
yen

We will work to expand the Indian market once
again—as COVID-19 spreading brought it to a
standstill—and strive to expand in-house e-commercein Asian countries to achieve growth

(Overseas Businesses) Key Points for Global Growth
Overseas businesses' sales

108 billion yen(Operating margin: 10%)

We will work on pushing growth in the areas we have entered (the UK, theUS, China) and spreading brand awareness in Europe, India, and otherareas, and transform businesses there into high-revenue structures

1 Uplift Growing Markets

Steadily grow in Europe and the US Acquire new customers via stronger digital marketing
 Make existing customers loyal by utilizing data andstrengthening CRM

Break new ground on markets withhigh sales potential
Estimated
Sales in
Emerging
Areas

22

Germany: 3 billion yen
India: 7 billion yen

2

Transform into Highrevenue Structures
Businesses boldly transform into
e-commerce businesses

VISION 2030
E-commerce
Ratio

50% or more
Includes client e-commerce,
specialized e-commerce, andin-house e-commerce sales

Convert to the Asia Headquarters
System Restructure the sales system and expand e-commerce tosuit Asia's market characteristics

Material Issues We Aim to Solve by 2030
Customers:
Maximize the value provided
to customers

Maximize Customer
Satisfaction
Achieve a Sustainable
Society

Employees:
Achieve growth of each of
our employees and establish
a highly rewardingorganization➀Enhancement of customer experience value by pursuing personalization➁Endeavoring to expand business areas➂Deepening of product quality and building of service quality④Growth into human resources who can expand their potential and have confidence,

pride, and success⑤Building of an organization that can demonstrate great results through co-creation and collaboration⑥Continuous improvement of employees' health and health awareness

Environment:
Corporate Sustainability

Preserve the environment
globally for future
generations

Increased Corporate
Revenue / Sustained
GrowthSociety:
Realize a society in which
everyone plays an active rolein their own way

Governance:
Enhance governance towardrealization of sustainablegrowth23⑦Promotion of business activities that reduce environmental impact⑧Promotion of co-creation innovation to solve social issues➈Implementation of highly-transparent management⑩Strengthening of the risk management system⑪Continuous improvement of profitability and capital efficiency* KPIs and progress on initiatives for these materialities will be disclosed on the website and via
Integrated Reports in the futurePromotion System: The Board of Directors Makes Decisions and Monitors Them
Customers:
Maximize the value provided
to customers(1) Progress on these will be managed at the Management Issues Review Meeting—where they deliberate on
management issues—as customers and employees are closely related to the businesses

Employees:
Achieve growth of each of
our employees and establish
a highly rewardingorganization

Environment:
Preserve the environment
globally for future
generations

Society:
Realize a society in which
everyone plays an activerole in their own way

Governance:
Enhance governance towardrealization of sustainablegrowth24(2) Progress on these will be managed by the Sustainability Committee (with the Representative Director,
President, and Corporate Officer of Wacoal Holdings Corp. serving as the Supervisory Director, and the Director,
Vice President Corporate Officer; Representative Director, President, and Corporate Officer of Wacoal Corp.
serving as the Committee Chair), established in Apr. 2022.
(Projects to raise awareness and further implement the Philosophy are launched under the umbrella of thiscommittee)<The Sustainability Committee and Its Subcommittees and Projects>
Sustainability Committee(Committee Chair: Director, Vice President Corporate
Officer; Representative Director, President, andCorporate Officer)

Subcommittee for
Carbon Neutral

Subcommittee for
Resource
Circulation

Subcommittee for
CSR Procurement

Project to Improve Women's QOL

Project to Promote Awareness of
the Philosophy

Subcommittee for
Human Rights, D&I(3) Progress on related efforts will be managed by the Board of Directors, the Executive Compensation Advisory
Committee, and the Executive Nomination Advisory Committee

VISION 2030 Plan Roadmap

Management
Strategies

Mar.
2025
term
Sales revenue
220 billion yen

Mar.

Operating profit
2025yen
16 billion(7.3%)
term
ROE 6%

Goal

Mar.
2028
term
Sales revenue
250 billion yen

Continue Expanding in the Areas we Have Entered
Expand Overseas
Businesses and Transform
Them into High-revenue
Structures

 Achieve growth in the Asian region• Sales: 5.9 billion yen (Operating profits: 0.3 billion yen)
• Strengthen efforts to expand in emerging areas
 Make IO, Inc. profitable again (Goal for the Mar. 2024
term)

Achieve Regrowth and Finish Structural Reform

Improve Domestic
Profitability and Expand
our Business Areas

 Bring back existing businesses' growth (Wacoal Corp.)• In-house e-commerce: 20 billion yen• Self-managed store sales: 40%
 Try to create new businesses

Formulate Processes to Solve Materialities
Sustainability
Solutions throughour Business25

 Ratio of women in management positions: 30% or more
 Achieve the health and productivity managementtargets in GENKI Project 2025
 Disclose all materiality KPIs (this and the preceding
points relate to Wacoal Corp. only) Review the Group companies' materiality KPIs

Mar.

Operating profit
2025yen
22 billion
term(8.8%)
ROE
8%
Goal

Mar.
Mar.
2031
Operating profit
2025yenterm
27 billion
Sales revenue
(10%)
term
270 billion yen
ROE
10%
Goal

Grow in the European and Indian Markets
 Achieve growth in overseas businesses• Sales: 108 billion yen• Operating profits: 10%
 Overseas sales ratio: 40%

Create New Businesses in the Health Area
 Bring back existing businesses' growth (Wacoal Corp.)• Existing businesses' sales: 110 billion yen• Operating profits: 8%
 Grow new businesses (Sales: 20 billion yen)

Strengthen Efforts Done Together with Stakeholders
 Go carbon neutral (Domestic locations) Use 50% eco-friendly materials (Wacoal Corp.)
 Achieve zero product waste (Wacoal Corp.) Reduce Scope 3 emissions by 20% (Wacoal business[Japan])1. The Mission We Should Fulfill in Today's Society
2. Reflecting On Our Previous Medium-term Management Plan:
On Formulating VISION 2030 and a Medium-term Management Plan

3. VISION 2030, Our Medium- to Long-term Management Strategy Framework
4. Medium-term Management Strategy (Mar. 2023 Term to Mar. 2025 Term)
5. Financial Strategy (Mar. 2023 Term to Mar. 2025 Term)
6. How We Must Change Our Ways

26

Medium-term Management plan Management Targets

１（billion of yen）

Net Sales（％ changes from FY2023）
Business Income（vs. Net sales）
Operating Income（vs. Net sales）
Income before income taxes and equity in net
income of affiliated companies（vs. Net sales）
Net income attributable to owners of parent（vs. Net sales）
27

FY2023 plan

FY2025 plan

（First year of medium-term
management plan）（Final year of midium-term
management plan）

205.0

220.0

ー

+7.3%

7.0

16.0

3.4%

7.3%

6.5

16.5

3.2%

7.5%

8.0

18.0

3.9%

8.2%

5.5

12.5

2.7%

5.7%

Medium-term Management plan Management Targets

2（Unit：yen）

FY2023 plan

FY2025 plan

（First year of mediumterm management plan）（Final year of midiumterm management plan）

EPS

97

200 or more

ー

ROE

ー

6.0%

ー

Shareholders' equityー

About 210 billionーReduction in strategic
stockholdingsーー（3-year）10 billion or more

Dividends Per Share80

ーTotal dividendsーー （3-year）About 20 billion

Share buybacks（FY2023 Implementation）
Growth investments or additional
returns（Share buybacks）

Investments in existing businesses

28

10 billionー

3-year totalー

10 billionーー （3-year）20～30 billion

6 billion～7 billion

6 billion～7 billion （3-year）About 20 billion

What We Aim For in the Medium-term Management Plan
We are laying the foundation to make VISION 2030 a reality.
As a manufacturing company that creates global brands, we will contribute to theaffluent lives of many people and transform ourselves into a highly profitable company
capable of sustainable growth.
From Mar. 2023 term to Mar. 2025 term

Medium-term Management Plan:
Core Strategies

CreateExpectations(Domestic businesses)

×

Shift to a Resilient Corporate Structure(Overseas businesses)

Accelerate Global Growth(Sustainability)

Promote Efforts that Address Materialities(Financial affairs)

Generate ROE that Exceeds Capital Cost

29

Respond to
Requests

 Bring back Wacoal Japan's growth Strengthen potential for growth in Wacoal's overseas
business Promote a human resources strategy that supports growth Finish domestic structural reform Achieve an ROE above capital cost Strengthen responses to human rights and environmental
issues×
Commitment

 Disclose the process to achieve our goal ROE(Reform the revenue structure / Improve capital efficiency)
 Continuously improve the executive compensation system

Core Strategies: Shift to a Resilient Management Structure (Domestic Businesses)
CX strategy and marketing innovation (Achieving re-growth)
Increase stores' value(Domestic businesses)

Shift to a Resilient
Corporate Structure

Promote our CX strategy

Achieve
Regrowth

Strengthen brand and productdevelopment capabilities
Develop human resources andorganizations

WacoalStrengthen e-commerce
Analyze and utilize
customer data
Develop strong brands
Develop products thatexceed expectations
Interact with customers inmore ways

Continue reforming the cost structure (Improve profitability)

Domestic
Subsidiaries

30

Become more profitable by reforming working styles and manufacturing structures and pursuing cost effectiveness- Personnel planning management Mar. 2025 term KPIs Total labor costs: 25 billion yen or less (Total labor cost ratio of 25% or less)- Review the cost-effectiveness of IT and other expenses, maximize the effectiveness of our marketing, and improve stores' revenues

Deal with unprofitable businesses (Improve profitability)

Construct a system that will continue delivering reliable profits (Consistently becoming profitable)
Decide whether to withdraw or detach businesses via periodic inspections (every half-term) and do soCX Strategy: Strengthen Communication with Customers with a Focus on Digital
Ratio of membership-only sales to retailstore-based sales

Over 60% in the Mar. 2025 term
(44% in the Mar. 2022 term)

We will use digital technology to connect with customers acrosschannels and brands and expand our customer pyramid

CX Strategy (1)Increase Stores' Value
Serviceswork together

3D
smart & try

Customer
Data

CX Strategy (2)Strengthen E-commerce

App
Services work
together"Deep, all-encompassing,and long-lasting"
Give each customer
personalized customer
experience value
Services work
togetherPhysicalStoresIn-house Ecommerce

Loyal customers(1)
Existing
customers
New customers

31(4)First-time customers

(2)
(3)

Improve LTV(1) Make customers loyal(2) Increase the number of repeat
buyers and purchases(3) Acquire more new members(4) Acquire more first-time customers

CX Strategy (3)Analyze and Utilize DataCX Strategy: Indicators

Total customer data
8.4 million people

Total customer data
7.35 million people

People who made apurchase in the last 5 years
Approx. 4.4 million people
People who made apurchase in the last year
Approx. 2.1 million people

People who made apurchase in the last 5 years
Approx. 5.1 million people
People who made apurchase in the last year
Approx. 2.5 million people
2 million Number of app
downloads

Actual results from theMar. 2022 term
Wacoal sales (incl. internal sales)

People who made apurchase in the last 5 years
Approx. 5.8 million people
People who made apurchase in the last year
Approx. 2.9 million people
Number of app
3 million downloads

Estimates for the Mar.
2023 term

People who made apurchase in the last 5 years
Approx. 6.6 million people
People who made apurchase in the last year
Approx. 3.3 million people

4 million Number of app
downloads

Estimates for the Mar.
2024 term

5 million Number of app
downloads

Estimates for the Mar.
2025 term

82.8 billion yen

104.4 billion yen

108 billion yen

110 billion yen

Self-managed sales (in-store + in-house ecommerce)

34 billion yen

41 billion yen

45 billion yen

51 billion yen

Ratio to sales

41.0%

39.3%

41.7%

46.3%

Self-managed sales (in-house e-commerceonly) * Mail-order catalog sales included

11 billion yen

14 billion yen

17.5 billion yen

23 billion yen

Ratio to sales

13.3%

13.4%

16.2%

20.9%

34.3 billion yen

44.8 billion yen

53.2 billion yen

62.3 billion yen

7.35 million people

8.4 million people

9.4 million people

10.3 million people

4.4 million people

5.1 million people

5.8 million people

6.6 million people

Number of members making purchases

2.1 million people

2.5 million people

2.9 million people

3.3 million people

Ratio to Wacoal members

28.6%

29.8%

30.9%

32.0%

2 million

3 million

4 million

5 million

Sales to members (based on retail prices)
Wacoal members (number of registeredmembers)
Wacoal members (who have madepurchases in the last 5 years)

Number of WACOAL CARNET (app)downloads

32

Total customer data
10.3 million people

Total customer data
9.4 million peopleCore Strategies: Accelerate Global Growth (Overseas
Businesses)
Accelerate DX on a global scale (Promote our CX strategy)(Overseas businesses)

Accelerate
Global Growth Increase customer experience value by combining our online and offline
operations
 Acquire new customers via stronger digital marketing
 Make existing customers loyal by utilizing data and strengthening CRM



WacoalAmericaMar. 2025 term
Operating
Profit Margin
around 8%

Measurement
via the app

Estimated sales in Mar. 2025
212 million USD

IO, Inc.

Mar. 2024 term
Break Even
Estimated sales in Mar. 2025
110 million USD

33

Aim for e-commerce growth through aggressive investments in digital technology
and in-house e-commerce• Utilize our digital fitting app to improve CX• Increase the e-commerce sales ratio by making the website more convenient andenhancing logistics

Questionsabout figure

Productsuggestions

Acquire more customers by enhancing marketing to boost brand power(Quickly settle on a new method of advertising to replace targeted advertisements)
With a goal to achieve 100 million USD in sales, we will keep actively investing toincrease brand awareness for the time being while also working to increase revenue
through improvements in areas such as production, logistics, and inventory
management
We hope to break even during the Mar. 2024 termCore Strategies: Accelerate Global Growth (Overseas Businesses)
Accelerate DX on a global scale (Promote our CX strategy)(Overseas businesses)

Accelerate
Global Growth Increase customer experience value by combining our online and offline
operations
 Acquire new customers via stronger digital marketing
 Make existing customers loyal by utilizing data and strengthening CRM

WacoalEuropeMar. 2025 term
Operating
Profit Margin
around 10%*

United Kingdom: Promote our CX strategy using in-house e-commerce and 3D smart & try• In order to widen the scope of brand awareness and see e-commerce growth,
we will improve customer experience value in physical stores via new services
and strengthen the connection they have to our online presence• This will start rolling out to UK retail locations in 2022
Europe: Strengthen development in the German market, which has great potential for growth

Estimated sales in Mar. 2025
125 million GBP

WacoalChina

Mar. 2025 term
Operating
Profit Margin
around 6%
Estimated sales in Mar. 2025
926 million CNY

34







Strengthen brand and product development in a way that suits customer and distribution
channel characteristics
Strengthen CRM work
• Acquire customers by developing high value-added products and strengthening
connections between physical stores and e-commerce• Make existing customers loyal by utilizing data and strengthening CRM• Use new product strategies in e-commerce businesses to capture middle-class customers
For physical stores, strengthen the retail store front by putting them into department stores,
malls, etc.

* Wacoal Europe: Operating profits with brand-related costs removed1. The Mission We Should Fulfill in Today's Society
2. Reflecting On Our Previous Medium-term Management Plan:
On Formulating VISION 2030 and a Medium-term Management Plan

3. VISION 2030, Our Medium- to Long-term Management Strategy Framework
4. Medium-term Management Strategy (Mar. 2023 Term to Mar. 2025 Term)
5. Financial Strategy (Mar. 2023 Term to Mar. 2025 Term)
6. How We Must Change Our Ways

35

Management Targets for the Mar. 2025 Term: Executive Summary
Sales revenue

220 billion yen

Wacoal: Promote our CX strategy and reinforce brand and product development capabilities to successfully regrow
Overseas: Grow in major regions (Europe, the US, and China) centered around e-commerce businesses

Operating profit

Accelerate the shift to a resilient corporate structure

16 billion yen

Net income attributable to theparent company's owner

12.5 billion yen
EPS

200 yen or more
36

Aim to bring back growth, primarily in the domestic and international
Wacoal business

Continue pushing to reform the revenue structure via methods such as personnel planning management and improving
other subsidiaries' profitability
Take into account the ideal business portfolio and businesses' futures, and decide whether to continue or change them

Aim to surpass our highest net profits of 12 billion yen
Continue structurally reforming our businesses and shift to a stable, profitable structure

Achieve EPS growth—in addition to profit growth—by actively
returning profits to shareholders

Actively return profits to shareholders to improve capital efficiency (100% or more total ratio for returns during the
medium-term plan period)

Operating Profit Plans by Segment for the Mar. 2025 Term
We aim to achieve an overall margin of 7% ormore by fostering domestic and internationalsales and increasing revenue[Operating profits]
10 billion
yen

Wacoalbusiness(Overseas)

Wacoalbusiness(Japan)Maintain growth in the US,
Europe, and China, andmake IO, Inc. profitable5 billionyen

Wacoal business (Overseas)

Operating profit margin: 7% (6.2 billion yen)
• Grow along with profitability centered around ecommerce• Shift IO, Inc. to a profitable structure

Wacoal business (Japan)

Operating profit margin: 7% (7.5 billion
yen)(Peach John)
Improve profitability byregrowing sales andmaking progress on
personnel planning

Maintain high levelsof profitability(Other businesses)

50 billion
yen• Make Wacoal more profitable by regrowing sales
and making progress on personnel planning
management• Deal with unprofitablebusinesses• Reform the cost structure• New M&A

Other: 2.3 billion yen (incl. 1.6 billion yen

from PJ)[Sales]100 billion
yen
Business Plan for
the Mar. 2025 term
Actual Mar. 2022
term results37• PJ: Maintain high levels of profits• Other: Take into account business portfolios andbusinesses' futures and continue adjusting them

Wacoal Corp. Structural Reform: Target Values for the Mar. 2025 Term
Total labor costs for the Mar. 2025 term

25 billion yen or less(Total labor cost ratio of 25% or less)Continue to push personnel planning management
Continue with personnel planning management to achieve a high-revenue structure
Progress up to the Mar. 2022 term: 2.2 billion/5 billion yen 3-Year Plan (up to the Mar. 2025 term):
Reduce by an additional 2.8 billion yen<Progress in Personnel Planning Management> *1. Changes in total labor costs including manufacturing labor costs*2. Only the effects of personnel planning (headcount reduction and optimal allocation) are reflected
35.0

36.3%

30.0

25.0

29.7%

33.6%

(Units: billions of yen)

Aim to achieve the total labor cost
ratio target by making progress on
the plan and recovering sales

40.0%
35.0%

33.5%

30.0%
Total
labor costs

27.5%

20.0

26.5%

Actual results (temporary
25.0%

25.4%

25.0%

Original plan
20.0%

or less

15.0

15.0%
Total
labor costs tosales ratio

10.0

5.0

impacts removed)

30.0

29.5

27.8

26.5

25.4

10.0%

25.0
or less

5.0%

Actual results (temporary
impacts removed)
Original plan

0.0

0.0%

FY2020Mar.
2020 term

38

FY2021Mar.
2021 term

FY2022
Mar.
2022 term

FY2023
Mar.
2023 term

FY2024Mar.
2024 term

FY2025
Mar.
2025 termFinancial Policies during the Medium-term Management Plan
(Mar. 2023 Term to Mar. 2025 Term) Period

 Work on becoming more profitable as our highest priority, and also
aim to boost our ROE by improving both asset and capital efficiency

Primary
Manageme
nt Policies  Prioritize investment in future growth and actively return profits toshareholders to improve our capital efficiency

Financial Indicators (KPIs)
ROE 6.0%
Reduce strategic
shareholdings by
10 billion yen or more

 Generate ROE that exceeds capital cost Work on becoming more profitable and aim to boost our ROE by improving both asset and capital efficiency
 Continue actively reducing strategic shareholdings Aim for strategic shareholdings to make up 15% or less of our net assets in the medium to long term

Improve the 3-year cumulative  Pay out stable dividends at approx. a 50% or higher payout ratio
total return ratio to get to100% or more
Shareholders' equity
210 billion yen
39 Flexibly buy back shares to improve capital efficiency

 Continue investing in growth and improving profitability and capital efficiency in order to boost our ROE
 Consider utilizing interest-bearing debt from the viewpoint of improving our corporate valuePlan for Investments and Shareholder Returns (Mar. 2023 Term to Mar. 2025 Term)
GrowthInvestments
Shareholder
Returns

Invest in IT and digital technology in order to grow, and consider opportunities to invest in new businesses
Investments in existing businesses: 20 billion yen; Investments in new businesses: 20 to 30 billion yenWe plan for the total amount of dividends during this 3-year period to be 20 billion yen; the company will also buy back 10
billion yen of its shares in the Mar. 2023 term
If we cannot find any appropriate growth investments, we will give additional returns to further improve our capital efficiency(20 to 30 billion yen)

Cash generated in the 3year period

55 billion yen or more
Net profits
Approx. 27 billion yen
Depreciation costs
Approx. 18 billion yen
Sale of strategic
shareholdings
10 billion yen or more

Existing investments
20 billion yen
Growth investments

Shareholder returns
Shareholder returns

30 billion yen
Growth investmentsorMake assets efficientUtilize debt
40

Total of dividends in the 3-year
period (20 billion yen)
Share buybacks in the Mar. 2023
term (10 billion yen)

Increase capital efficiency

Growth investments oradditional returns
20 to 30 billion yen

Efforts to Improve Effectiveness
Push for GroupManagement
Make the Group MoreCapable

1






Continuously Improve the Executive
Compensation System

Review the Management Structure and Clarify
Who Is Responsible for Each Business2

Move the Global Division—which oversees our overseas businesses—from
Wacoal Corp. to Wacoal Holdings Corp. to bolster our global management
systemExpand 3D smart & try overseas and share each company's marketing know-how

From Jun.
2021

Future Business
WacoalResponsibility
CEObusiness inSystem Japanand other businesses
in Japan

Representative Director,
President and Corporate
Officer
Hironobu Yasuhara

41

Establish a highly effective business management system in order to achieve our
medium- to long-term plans
Start reviewing the compensation system to make the Board of Directors more effective

Director, Vice
President Corporate
Officer; Representative
Director (President andCEO of Wacoal Corp.)
Tomoyasu Ito

Titles are as of the Ordinary General
Meeting of Shareholders scheduled tobe held on Jun. 29, 2022

Wacoalbusinessoverseas

Director, Executive
Corporate Officer, andGeneral Manager of
Global Division
Masaaki Yajima

CFO

Director and Managing
Corporate Officer incharge of Group
Business Management
Akira Miyagi* Group corporate officers have also been appointed in order to utilize personnel, assets, know-how, networks, and moreacross boundaries within the group(Corporate officers are those in charge of the Group's HR, IT advancement, R&D, technology and manufacturing, quality
assurance and sustainability management, intellectual property, DX marketing strategy, and sustainability advancement)

Introduce a restricted stock compensation
systemMatters the Executive Compensation
Advisory Committee will review

To beconsideredfrom 2022

3

 Review the structure of basic compensation,
performance bonuses, and stock compensation startingin Jul. 2022, starting with the ratio of basic to stockbased compensation, and then move to a structure
where higher-ups receive a higher ratio of stock-based
compensation
 Review the calculation method for performance bonuses

Ensure Diversity on the Board of Directors
 Consider our medium- to long-term strategies and ensure the Board of
Directors maintain their expertise, independence, and diversity
 Continue working to ensure diversity within the company, including pushingfor women to actively participate

1. The Mission We Should Fulfill in Today's Society
2. Reflecting On Our Previous Medium-term Management Plan:
On Formulating VISION 2030 and a Medium-term Management Plan

3. VISION 2030, Our Medium- to Long-term Management Strategy Framework
4. Medium-term Management Strategy (Mar. 2023 Term to Mar. 2025 Term)
5. Financial Strategy (Mar. 2023 Term to Mar. 2025 Term)
6. How We Must Change Our Ways

42

What the Wacoal Group is Currently Lacking

Members of the Sustainability Promotion Project—which operated mainly with next-generation leaders andyoung employees—discussed this topic(Active from Apr. 2021 to Mar. 2022)• Observing things from all perspectives• Understanding people and things on deep levels, not superficially• Finding better solutions through sound discussions with no surmisingor guessing• Being aware of global issues—such as the environment and humanrights—and the planet's future• Taking on new challenges without being afraid of the risks• Co-creating and working hard together across organization andcompany boundaries• Taking responsibility for our own roles and actions, and being moreaware of compliance
43

VISION 2030: Executive and Employee Action Guidelines Formulated to Strengthen Our
Ability to Adapt to Change"Think about the happiness of others"
Do you consider the happiness of people around you, including the customers, suppliers, andemployees coworker you work with?

"Embrace curiosity and use all five senses"
Have you noticed or discovered anything new lately?

"Consider the reason and purpose"
Do you understand the true meaning and root cause; why and what for?

Guidelines for
the Actions of
Officers andEmployees"Respect diverse opinions"
Do you listen to people's opinions with humility and have constructive discussions without making
assumptions?

"Make decisions for the future"
Do you act not only for immediate results, but also for a successful future?

"Give it a try first"
Do you give up out of fear of risks? Do you support people who take on challenges?

"Work together"
Do you strive for great success through teamwork and collaboration?

"Act with honesty and responsibility"
Do you communicate appreciation for others? Do you have blameless problem-solving approach?
44

By taking on the challenge ofchange and continuing to grow,we will become a force thatmakes the world beautiful

45

（Note）Medium-Term Management Plan Briefing Session Material
Supplementary material46

【Exchange rate】

Reference 1 "VISION 2030" and FY2025 plan

USD

GBP

CNY

120.00155.0019.00(Billions of yen)

Net Sales

FY2023 plan

FY2025 plan

（First year of medium-term
management plan）（Final year of midium-term
management plan）

FY2031 plan
（Final year of VISION2030）

205.0

220.0

270.0

134.9

133.2

162.0

65.8%

60.5%

60.0%

70.1

86.8

108.0

34.2%

39.5%

40.0%

-

-

340.0

7.0

16.0

27.0

3.4%

7.3%

10.0%

5.5

12.5

21.0

ROE

ー

6%

10%

Shareholders' equity（billion）

ー

210.0

210.0

Domestic Business Net sales※Total Sales of Wacoal Business (Japan), Peach John, etc.

（vs. Net sales）
Overseas Business Net sales（vs. Net sales）（reference）Sales including equity-method affiliates

Business Income
Business Income ratio
Net income attributable to owners of parent

47

Reference 2【Exchange rate】

FY2025 plan（Final year of midium-term management）※repost

USD

GBP

CNY

120.00155.0019.00（Billion of yen）

Net Sales（％ changes from FY2023）
Business Income（vs. Net sales）
Operating Income（vs. Net sales）
Income before income taxes and equity in net
income of affiliated companies（vs. Net sales）
Net income attributable to owners of parent（vs. Net sales）
48

FY2023 plan

FY2025 plan

（First year of medium-term
management plan）（Final year of midium-term
management plan）

205.0

220.0

ー

+7.3%

7.0

16.0

3.4%

7.3%

6.5

16.5

3.2%

7.5%

8.0

18.0

3.9%

8.2%

5.5

12.5

2.7%

5.7%

【Exchange rate】

Reference 3

FY2025 Major Subsidiaries plan

USD

GBP

CNY

120.00155.0019.00（Million of yen）
FY2023 plan
Net sales
Wacoal Business (Japan)

Wacoal Business(Overseas)

Operatingincome% Of sales

Net sales% Change(vs FY2023)

Operatingincome% Of sales

Wacoal

102,900

ー

3,000

2.9

107,500

+4.5%

7,500

7.0%

Wacoal International
Corp. (U.S.)

30,027

ー

384

1.3

38,122+27.0%

2,377

6.2%

Wacoal Europe Ltd.

17,302

ー

1,404

8.1

19,377+12.0%

1,652

8.5%

Wacoal China Co., Ltd.

14,516

ー

415

2.9

17,601+21.3%

1,034

5.9%

12,750

ー

1,490

11.7

13,510

+6.0%

1,565

11.6%

Lecien

3,200

ー

▲ 170

ー

3,580

+11.9%

200

5.6%

Nanasai

6,423

ー

0

0.0

8,315

+29.5%

280

3.4%

Ａｉ

2,700

ー

10

0

3,594

+33.1%

200

5.6%

Peach John Businesses

Other Businesses% Change

FY2025 plan

Major Overseas Subsidiaries（ Local Currency Basis ）FY2023 plan
Net sales

Wacoal Business(Overseas)

49% Change

FY2025 plan

Operatingincome% Of sales

Net sales% Change(vs FY2023)

Operatingincome% Of sales

Wacoal International
Corp. (U.S.)

250,221

ー

3,199

1.3

317,687+27.0%

19,810

6.2%

Wacoal Europe Ltd.

111,629

ー

9,058

8.1

125,012+12.0%

10,6598.5%

Wacoal China Co., Ltd.

763,993

ー

21,8172.9

926,390+21.3%

54,410

5.9%

The information contained in this document has been prepared based on information available at thetime of this publication. The company does not warrant or promise that the information will lead tosuccessful results. This document is subject to change without notice.
While we exercise great care when posting this information, we are not responsible for any errors in theinformation published.

50