Consolidated Financial Statements for the Fiscal Year Ended March 31, 2017 (U.S. Accounting Standards)[Translation]
May 10, 2017
Listed Company: Wacoal Holdings Corp.
Stock Exchanges: Tokyo (1st section)
Code Number: 3591 URL: http://www.wacoalholdings.jp/
Representative: (Position) Representative Director(Name) Yoshikata Tsukamoto
For Inquiries:(Position) General Manager of Corporate Planning(Name) Akira Miyagi
Tel: +81 (075) 682-1010
Scheduled date of Ordinary Shareholders’ Meeting: June 29, 2017 Scheduled Commencement Date of Dividend Payment: June 6, 2017
Scheduled date of Annual Securities Report Filing: June 29, 2017
Supplementary materials regarding Annual Business Results: Yes
Explanatory meeting regarding Annual Business Results: Yes(Amounts less than 1 million yen have been rounded.)1.

Consolidated Results for the Fiscal Year Ended March 31, 2017 (April 1, 2016 – March 31, 2017)(1) Consolidated Business Results(% indicates changes from previous fiscal year)
Net Sales

Fiscal Year Ended March 31, 2017
Fiscal Year Ended March 31, 2016
(Note) Comprehensive income:Operating Income

Income Before Income
Taxes and Equity in Net
Income of AffiliatedCompanies

Net Income
Attributable to Wacoal
Holdings Corp.

Millions of Yen %Millions of Yen %Millions of Yen %195,881 (3.5)
11,065(20.2)
16,56910.8
202,917 5.8
13,86595.8
14,957
31.9
Fiscal Year ended March 31, 2017: 12,296 million yen (- %)Fiscal Year ended March 31, 2016: (49) million yen (- %)Net Income
Attributable to
Wacoal Holdings
Corp. Per Share
Yen
Fiscal Year Ended March 31, 2017
90.13
Fiscal Year Ended March 31, 2016
79.23
(Reference) Equity in net income of affiliated companies:

Diluted Net
Earnings
Attributable to
Wacoal Holdings
Corp. Per Share

Millions of Yen %12,525
12.2
11,15932.2

Ratio of Net Income
Attributable toRatio of Pre-tax
Wacoal Holdings
Net Income toCorp. toTotal Assets
Shareholders’ Equity

Ratio of
Operating
Income to Net
Sales

Yen
%
%
89.85
5.5
5.6
79.00
4.9
5.0
Fiscal Year ended March 31, 2017: 1,359 million yen
Fiscal Year ended March 31, 2016: 1,245 million yen

%
5.6
6.8

(2) Consolidated Financial Condition

Total Assets

Fiscal Year Ended March 31, 2017
Fiscal Year Ended March 31, 2016

Total Equity(Net Assets)

Millions of Yen Millions of Yen
294,958
232,482
292,854229,401

Total Shareholders’ Total Shareholders’EquityEquity Ratio
Millions of Yen
227,568
224,374

%
77.2
76.6

Shareholders’EquityPer ShareYen
1,658.53
1,592.90(3) Consolidated Cash Flow Status

Fiscal Year Ended March 31, 2017
Fiscal Year Ended March 31, 2016

Cash Flow provided Cash Flow provided by Cash Flow provided by Balance of Cash and Cashby Operating(used in) Investing(used in) Financing
Equivalents at End of Fiscal
Activities
Activities
Activities
Year
Millions of Yen
Millions of Yen
Millions of Yen
Millions of Yen
16,351(3,032)(13,055)
33,995
12,635(11,407)(4,547)
34,059-1-

2.

Status of Dividends

Annual Dividend

Fiscal Year Ended March 31, 2016
Fiscal Year Ended March 31, 2017
Fiscal Year Ending March 31,2018 (Estimates)(Notes)End ofFirst
Quarter

End ofSecondQuarter

End ofThird
QuarterYear-end

Annual

Yen

Yen

Yen

Yen

Yen

-

18.00

-

33.00
36.00
18.00

33.00
36.00
36.00

Total
Amount ofDividends(annual)Payout Ratio(consolidated)

Ratio of
Dividend to
Shareholders’Equity(consolidated)

%

%

41.7
39.9
54.9

2.1
2.2

Millions of
Yen
4,648
4,940

As disclosed by us today, on May 10, 2017, we are planning to carry out a share consolidation as to the shares of common stock of theCompany at the ratio of two (2) shares into one (1) share effective as of October 1, 2017. Please note that such share consolidation
was not taken into consideration in determining the amount of the annual cash dividend for the next fiscal year (i.e., the fiscal year
ending March 31, 2018) (estimated) mentioned above. If the share consolidation had been carried out at the beginning of the next
fiscal year (i.e., the fiscal year ending March 31, 2018), the annual cash dividend per share for the next fiscal year would have been 72
yen. The payment ratio (consolidated) remains at 54.9%.
For details, please see “(3) Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2017 and Fiscal Year 2018”
in Section 1 “Business Results” on page 11.

3.

Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2018 (April 1, 2017 – March 31, 2018)(% indicates changes from the previous fiscal year with respect to “Annual” and from the six-month period ended September 30, 2016 withrespect to “Six-month Period Ending September 30, 2017”)
Net Income
Net Income
Attributable toAttributable to
Net Sales
Operating Income Pre-tax Net Income
Wacoal Holdings
Wacoal Holdings
Corp.
Corp. Per Share
Millions of Yen %Millions of Yen %Millions of Yen %Millions of Yen %YenSix-month Period Ending
103,000 0.6
8,300 5.2
9,000 (24.3)
6,200 (32.6)
45.19
September 30, 2017
Annual
200,000 2.1
11,500 3.9
12,500 (24.6)
9,000 (28.1)
65.59(Notes)As disclosed by us today, on May 10, 2017, we are planning to carry out a share consolidation as to the shares of common stock of theCompany at the ratio of two (2) shares into one (1) share effective as of October 1, 2017. Please note that such share consolidation
was not taken into consideration in calculating the amount of the net income attributable to Wacoal Holdings Corp. per share stated in
the “Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2018” above. If the share consolidation had been carriedout at the beginning of the fiscal year ending March 31, 2018, the amount of the net income attributable to Wacoal Holdings Corp. pershare for said fiscal year would have been as follows:
Six-month Period Ending September 30, 2017: 90.38 yen

Annual: 131.18 yen*Notes(1) Changes in significant subsidiaries during the fiscal year ended March 31, 2017 (change in scope of consolidation): None
New: None
Excluded: None
(Note) For details, please see “(7) Basic Significant Matters in Preparation of Consolidated Financial Statements” in Section 3“Consolidated Financial Statements” on page 19.
(2) Changes in Accounting Principles:(i) Changes due to modifications in accounting standards, etc.: None(ii) Changes other than (i) above: None

(3) Number of Issued Shares (Common Stock)

(i)
(ii)
(iii)

Number of issued shares (including treasury stock) as of period-end:
Number of shares held as treasury stock as of period-end:
Average number of shares during the period:-2-

Fiscal Year Ended
March 31, 2017
143,378,085 shares
6,167,211 shares
138,966,630 sharesFiscal Year Ended
March 31, 2016
143,378,085 shares
2,519,350 shares
140,842,184 shares

(Reference) Summary of Non-consolidated Results1.

Non-consolidated Results for the Fiscal Year Ended March 31, 2017 (April 1, 2016 – March 31, 2017)(1) Non-consolidated Business Results

Fiscal Year Ended March 31, 2017
Fiscal Year Ended March 31, 2016

Net Sales
Millions of Yen %13,13920.2
10,934
0.3

Fiscal Year Ended March 31, 2017
Fiscal Year Ended March 31, 2016

Net Income
Per Share
Yen
82.42
47.85

Operating Income
Millions of Yen %
9,241
31.7
7,016
(1.2)
Diluted Net Earnings
Per Share
Yen
82.16
47.69

-3-

(% indicates changes from previous fiscal year)
Ordinary Income
Net Income
Millions of Yen %Millions of Yen %
9,215
30.8
11,453
70.0
7,044
(4.1)
6,739
-

(2) Non-consolidated Financial Condition(% indicates changes from previous fiscal year)
Total Assets
Net Assets
Capital-to-asset Ratio
Net Asset per Share
Millions of Yen
Millions of Yen%
Yen
Fiscal Year Ended March 31, 2017
165,113
145,49687.9
1,057.19
Fiscal Year Ended March 31, 2016
163,972
143,13587.0
1,013.19(Reference) Equity Capital: As of the end of the fiscal year ended March 31, 2017: 145,057 million yen
As of the end of the fiscal year ended March 31, 2016: 142,717 million yen*These financial statements are not subject to audit procedures.
*Cautionary Statement regarding Forward Looking Statements
The foregoing estimates are made based on information available as of the date this data was released, and actual results may differ fromestimates due to various factors arising in the future.
Statements made in this report regarding Wacoal’s or management’s intentions, beliefs, expectations, or predictions for the future areforward-looking statements that are based on Wacoal’s and managements’ current expectations, assumptions, estimates and projections about
its business and the industry. These forward-looking statements, such as statements regarding fiscal year 2018 revenues and operating and net
profitability, are subject to various risks, uncertainties and other factors that could cause Wacoal’s actual results to differ materially from thosecontained in any forward-looking statement.

-4-

Table of Contents for Attached Materials
1.

Business Results ------------------------------------------------------------------------------------------------------------------------------------- 6(1)

Business Results for Fiscal Year 2017 ---------------------------------------------------------------------------------------------------------- 6(2)

Financial Condition as of Fiscal Year 2017 ---------------------------------------------------------------------------------------------------- 9(3)

Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2017 and Fiscal Year 2018 ----------------------------- 11

2.

Basic Policies regarding Selection of Accounting Standards----------------------------------------------------------------------------------- 12

3.

Consolidated Financial Statements --------------------------------------------------------------------------------------------------------------- 13(1)

Consolidated Balance Sheets ---------------------------------------------------------------------------------------------------------------------- 13(2)

Consolidated Statements of Income--------------------------------------------------------------------------------------------------------------- 15(3)

Consolidated Statements of Comprehensive Income ------------------------------------------------------------------------------------------- 16(4)

Consolidated Statements of Equity ---------------------------------------------------------------------------------------------------------------- 16(5)

Consolidated Statements of Cash Flows ---------------------------------------------------------------------------------------------------------- 18(6)

Notes on Going Concern --------------------------------------------------------------------------------------------------------------------------- 19(7)

Basic Significant Matters in Preparation of Consolidated Financial Statements ------------------------------------------------------------ 19(8)

Notes to the Consolidated Financial Statements ------------------------------------------------------------------------------------------------ 20

4.

Other -------------------------------------------------------------------------------------------------------------------------------------------------- 24-5-

Qualitative Information and Financial Statements
1.

Business Results(1) Business Results for Fiscal Year 2017
Results for the Fiscal Year Ended March 31, 2017
Our group entered the first year of our three-year mid-term plan (from fiscal year 2017 to fiscal year 2019), and we have been making
efforts to improve profitability and business efficiency in line with the five elements of the basic policies, which are (i) to improve theinfrastructure of our group management base as a foundation, (ii) to ensure profits from our domestic business, (iii) to achieve further growthof our overseas business, (iv) to achieve group synergies through collaboration and to strengthen our competitiveness and (v) to attempt to
expand our business portfolio. Also, we intend to improve our corporate value by implementing an efficient capital policy.
During the current fiscal year, we steadily focused on increasing the productivity of our wholesale business and the profitability of ourretail business in Japan, as well as improving and strengthening the foundations of our overseas business. While the domestic market continues
to experience the slowdown in consumption of luxury goods and a series of closings of general merchandise stores, we moved forward with thedevelopment of products with new features and the standardization of goods for campaigns implemented at our directly managed stores. With
respect to our overseas business, while respecting the local management, we continued to improve the value of our brands by providing
high-end goods backed by craftsmanship and quality and to strengthen our ability to respond to the immensely growing e-commerce market.
Also, two material manufacturers in Thailand and one sewing company in Myanmar commenced operations, enabling us to upgrade theinfrastructure for the stable supply of our high-quality and cost-competitive materials/products.
As a result of our above-mentioned efforts, our consolidated sales for the current fiscal year fell below the consolidated sales for theprevious fiscal year due to tighter management of inventories by our clients, even though the over-the-counter sales of our domestic businesswere steady. Sales from our overseas business in Europe on a local currency basis exceeded such sales for the previous fiscal year, mainly due
to the favorable effect of the depreciation of the British Pound. However, sales from our business in the United States and China remained
unchanged from the previous fiscal year. As a result, on a yen converted basis, consolidated sales on the Japanese Yen basis fell below theconsolidated sales for the previous fiscal year due to the inflation of the Japanese Yen.
Although our consolidated operating income fell much below the consolidated operating income for the previous fiscal year due toincreases in selling, general and administrative expenses which resulted from our domestic business and expenses related to the liquidation
proceedings by our French subsidiary, it exceeded our initial plan for the current fiscal year. On the other hand, income before income taxes
and equity in net income of affiliated companies largely exceeded that for the previous fiscal year due to gain on sale of fixed assets (land) for
the first quarter of the current fiscal year.
As a result of the above, with respect to our consolidated business results for the fiscal year ended March 31, 2017, the consolidated
operating income margin was 5.6%, and the consolidated ROE (i.e., return on Wacoal Holdings Corp. shareholders’ equity for the current fiscal
year) was 5.5%.
Net Sales:

195,881 million yen(a decrease of 3.5% as compared to the previous fiscal year)

Operating income:

11,065 million yen(a decrease of 20.2% as compared to the previous fiscal year)

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

16,569 million yen(an increase of 10.8% as compared to the previous fiscal year)

Net income
attributable to Wacoal
Holdings Corp.:

12,525 million yen(an increase of 12.2% as compared to the previous fiscal year)

Business Overview of Our Operating Segmentsa.

Wacoal Business (Domestic)

With respect to our Wacoal brand business, sales of brassiere products with new features which provide comfort to wear increased steadily,and sales of our pajama products of which design focuses on comfort for sleep increased by winning consumers. On the other hand, sales of our
luxury-line products and underwear products were poor due to factors such as a slowdown in the consumption of luxury goods, a decrease inaverage spending per inbound tourist, the impact of a warm winter and the absence of the temporary demand increase we experienced in theprevious fiscal year. As a result, overall sales fell below the overall sales for the previous fiscal year.

-6-With respect to our Wing brand business, the shop sales of brassiere products for the whole current fiscal year were steady due to thestrong sales of our spring/summer line of products. Also, our brand for junior generation “Pulili” business largely exceeded the results for theprevious fiscal year due to the increase in the number of retailers selling this brand. However, as the sales of bottoms products were poor ascompared to the sales for the previous fiscal year and general merchandise stores increasingly elected to close unprofitable stores and reduceinventories, overall sales fell below the overall sales for the previous fiscal year.
In our retail business, sales of our directly managed retail store, “AMPHI”, and our outlet store, “Factory Store”, remained unchanged
from the previous fiscal year, despite a decrease in the number of buying customers, due to our success in updating our sales approach,including by introducing in-store discounts that resulted in an increase in average spending per customer. Also due to the expansion of sales ofour common products for the campaign “BRAGENIC” and implementation of our store roll-out plan focusing on profitability, overall sales
exceeded the overall sales for the previous fiscal year.
In our wellness business, although sales of our sports bra products under the “CW-X” brand showed were steady, sales of functional sporttights were poor at both sport specialty chain stores and outdoor specialty stores, due to increased competition in the market. Export sales forthe market in the United States were also weak. As a result, overall sales fell below the overall sales for the previous fiscal year.
In our catalog sales business, although there was a turnaround in sales in the fourth quarter of the current fiscal year due to our campaign
using SNS “LINE”, review of the number of issues of catalogs published and expansion in demand through improved communications withmember customers, overall sales for the whole current fiscal year fell below the overall sales for the previous fiscal year due to theunderperformance of our catalog products from the first quarter of the current fiscal year to the third quarter of the current fiscal year.
With respect to Ai Co., Ltd., although sales from our e-commerce website focusing on swimwear grew steadily, overall sales dropped
compared to overall sales for the previous fiscal year, due to the underperformance of our seasonal stores opened only during a period of peakdemand, as well as the reduction of sales space at department stores and the increased returns of our products resulting from poorly-functioning
e-commerce websites managed by other companies.
As a result, sales attributable to our “Wacoal Business (Domestic)” segment decreased 1.8% from such sales for the previous fiscal year.
Operating income decreased 21.0% from the previous fiscal year due to an increase in retirement benefit expenses at Wacoal Corp., recognitionof one-time expenses and depreciation expenses in connection with the opening for the business at the New Kyoto Building, and an increase inlocal tax as a result of the introduction of pro-forma basis taxation.

b.

Net Sales:

118,389 million yen(a decrease of 1.8% as compared to the previous fiscal year)

Operating income:

6,959 million yen(a decrease of 21.0% as compared to the previous fiscal year)

Wacoal Business (Overseas)

With respect to Wacoal America, Inc., department-store sales on a local currency basis were weak due to the shifting focus in the retail
environment in the United States from physical store sales to e-commerce sales, a trend that has become more prominent. On the other hand,overall sales on a local currency basis remained unchanged from the previous fiscal year, as sales from our own e-commerce website increased
significantly and sales of our products through e-commerce websites managed by department stores and other companies grew substantially.
The gross profit rate improved because discounts were decreased by our pricing policy and also due to a higher ratio of e-commerce sales.
However, operating income on a local currency basis fell below the operating income for the previous fiscal year due to increases of expenses
associated with strengthening of e-commerce sales, increases of labor costs in healthcare costs as a result of increases in medical insurance
premiums, and impact of expenses from closure of our directly managed outlet stores that were underperforming.
With respect to sales on a local currency basis for Wacoal Europe, sales at department stores in the United Kingdom were steady ande-commerce sales in the North America were strong. Also, sales from our plus-size brand “Elomi” greatly exceeded sales for the previous
fiscal year in various countries including Europe, North America and Australia. Although sales were significantly and negatively impacted by
the “Huit” brand, which business was liquidated, overall sales exceeded the overall sales for the previous fiscal year due to the currency
appreciation in non-British Pound markets. In terms of operating income on a local currency basis, although gross profit increased due toincreased sales, our overall operating income largely fell below the operating income for the previous fiscal year due to the impact of expenses
related to the liquidation proceedings for our French subsidiary and increased expenses under IT-related investments.
With respect to our business in China, as a result of consumers becoming more sophisticated in balancing quality and service against price,sales of “Wacoal” brand products were poor and over-the-counter sales at department stores grew at a stagnant pace. However, e-commerce
sales were steady due to strong sales on the online shopping festival day called “Double Eleven”. As a result, although overall sales on a local
currency basis for the first half of the fiscal year were weak, the overall sales on a local currency basis for the whole current fiscal year remained
unchanged from the previous fiscal year. Operating income on a local currency basis exceeded the operating income for the previous fiscal
year due to the closure of underperforming stores and suspension of opening of shops for the “La Rosabelle”, our brand targeting the
middle-class consumers.

-7-

As a result of the above, and due to the impact of foreign exchange rates caused by the appreciation of the Japanese Yen during the current
fiscal year, the overall sales attributable to our “Wacoal Business (Overseas)” segment on the Japanese Yen basis decreased 6.6% and theoperating income decreased 31.1% compared to the results for the previous fiscal year.

c.

Net Sales:

48,423 million yen(a decrease of 6.6% as compared to the previous fiscal year)

Operating income:

3,055 million yen(a decrease of 31.1% as compared to the previous fiscal year)

Peach John BusinessWith respect to Peach John Co., Ltd., retail sales at stores exceeded retail sales from mail-order catalogues for the current fiscal year. Thisis due to strong sales of our directly managed stores we own domestically, especially at the existing stores located in Tokyo. We also
experienced significant growth in sales through e-commerce websites managed by other companies for the whole current fiscal year. Overseas
subsidiaries in Hong Kong and China both experienced positive growth. On the other hand, because the sales of outerwear from domestic mailorder catalogues fell significantly below such sales for the previous fiscal year, the results for the overall sales remained unchanged from theprevious fiscal year. In terms of operating income, as the gross profit rate improved due to favorable foreign exchange rates, as well as
reduction in production cost for direct mail sales catalogs and our Chinese subsidiaries returning to profitability, operating income largely
exceeded the operating income for the previous fiscal year.

d.

Net Sales:

11,107 million yen(a decrease of 0.7% as compared to the previous fiscal year)

Operating income:

374 million yen(an increase of 45.0% as compared to the previous fiscal year)

Other

With respect to the business of Lecien Corporation (“Lecien”), sales of the innerwear business, which is its main business division, werepoor for the whole current fiscal year, as sales during the fall and winter were poor, while the “brassiere for school club activities”
campaign conducted during the fourth quarter of the current fiscal year proved to be successful. The art & hobby business, which mainly deals
in handcraft items, performed poorly, as the anticipated repeat orders from North America did not materialize. As a result, overall sales from
Lecien fell below the overall sales from the previous fiscal year. However, with respect to operating income, we moved to surplus from deficit
for the previous fiscal year, due to the increased gross profit rate as a result of favorable foreign exchange rates, as well as increases in unit
prices of innerwear products and a shift towards sales of high-profit products in both innerwear and art & hobby businesses.
With respect to Nanasai Co., Ltd. (“Nanasai”), while the rental business performed well in areas such as seasonal shops and events, its
business aimed at permanent stores such as department stores performed poorly. Sales from the construction business fell below the sales forthe previous fiscal year due to continued postponement by our valued clients of sales space renovation projects because of worsened business
confidence in the clothing industry. The poor sales of sales business were the result of postponement of construction projects. As a result,overall sales from Nanasai fell below the overall sales for the previous fiscal year. Operating income fell below the operating income for theprevious fiscal year in spite of our efforts to reduce operating expenses, due to the decrease in the gross profit rate caused by increases in rental
business costs and the increase in the percentage of low-profit construction projects.
As a result of the above, overall sales attributable to our “Other” segment decreased 6.9% from the overall sales for the previous fiscal year,
and operating income increased 86.0% from the operating income for the previous fiscal year.
Net Sales:

17,962 million yen(a decrease of 6.9% as compared to the previous fiscal year)

Operating income:

677 million yen(an increase of 86.0% as compared to the previous fiscal year)

Forecast for Next Fiscal Year
Because the domestic economy is anticipated to make only a mild recovery due to improvement in the employment environment, themanagement environment surrounding our group will remain difficult, as consumers will very likely continue to be budget-conscious and anumber of large-scale retail stores will withdraw from the market. Also, as our overseas business might be affected by the trade and financial
policies to be adopted by the new government of the United States, political situations in European countries, as well as economic
circumstances in China and other Asian countries, the prospects for our overseas business will remain uncertain.
In such an environment, our group will continue to move forward with improving and strengthening of our business structure towardachieving the objectives of our mid-term business plan. Specifically, we will make effort to promote the growth in our domestic business byincreasing the efficiency of our organization and human resources and by working on the utilization of digital devices at stores as well as the-8-strengthening of e-commerce websites, aiming for the realization of omni-channel services that will achieve synergies with our wholesale
business. Further, we will implement thorough inventory controls in order to enhance profitability of our business as a whole, and also increase
the profitability of each of our brands and product groups by achieving an appropriate product mix and by being selective about and targeting
our promotional spending. In our overseas business, we are planning to pursue business collaboration between Europe and the United States
and to establish system infrastructure that enables sharing of information on product planning and production management, aiming for thedevelopment of highly competitive products and decreases in procurement lead time. Further, in China, we will enhance our system tostrengthen digital marketing, such as through mobile applications and utilization of SNS tools, and continue to strengthen our ability to respondto accelerating expansion of e-commerce markets throughout the world. In addition, we will seek to supply high-value-added
materials/products and stabilize procurement costs for our group companies within and outside Japan, by putting effort into improving productquality and cost competitiveness in China and ASEAN-member countries, which are our product supply bases.
Our forecast for the next fiscal year is as follows. The exchange rate used for the U.S. dollar is 110 yen to the dollar; the exchange rateused for the Sterling pound is 145 yen to the pound; and the exchange rate used for the Chinese yuan is 16 yen to the yuan.
Net Sales:

200,000 million yen(an increase of 2.1% as compared to the previous fiscal year)

Operating income:

11,500 million yen(an increase of 3.9% as compared to the previous fiscal year)

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

12,500 million yen(a decrease of 24.6% as compared to the previous fiscal year)

Net income
attributable to Wacoal
Holdings Corp.:

9,000 million yen(a decrease of 28.1% as compared to the previous fiscal year)(2) Financial Condition as of Fiscal Year 2017
Status of Assets, Liabilities and Shareholders’ Equity
Our total assets as of March 31, 2017 were 294,958 million yen, an increase of 2,104 million yen from the end of the previous fiscal
year, due to increases in tangible fixed assets and investments.
With regard to liabilities, our current liabilities were 62,476 million yen, a decrease of 977 million yen from the end of the previous
fiscal year, due to decreases in short-term bank loans and notes and accounts payable.
Shareholders’ equity was 227,568 million yen, an increase of 3,194 million yen from the end of the previous fiscal year, due toincreases in retained earnings and unrealized gain on securities.
As a result of the above, our total shareholders’ equity ratio as of March 31, 2017 was 77.2%, an increase of 0.6% from the end of theprevious fiscal year.
Cash Flows Status
Cash flow provided by operating activities:
Cash flow provided by operating activities was 16,351 million yen, an increase of 3,716 million yen as compared to the previous
fiscal year, which reflects the result of adjusting the net income of 12,648 million yen for depreciation expenses and deferred taxes, as well aschanges in assets and liabilities.
Cash flow used in investing activities:
Cash flow used in investing activities was 3,032 million yen, a decrease of 8,375 million yen as compared to the previous fiscal year,
due to capital expenditures.
Cash flow used in financing activities:
Cash flow used in financing activities was 13,055 million yen, an increase of 8,508 million yen as compared to the previous fiscal
year, due to cash dividend payments and repurchase of treasury stock.

-9-As a result, the balance of cash and cash equivalents at the end of fiscal year 2017, calculated by adding the exchange difference on
cash and cash equivalents to the above total, was 33,995 million yen, a decrease of 64 million yen as compared to the end of the previous fiscal
year.
Free cash flow, which was calculated by subtracting the amount of capital investment from the cash flow provided by operating
activities, amounted to 8,906 million yen.

- 10 -

Trends in certain cash-flow indicators

Shareholders’ equity ratio (%)
Shareholders’ equity ratio basedon market value (%)
Debt redemption years (years)
Interest coverage ratio (times)

Fiscal Year
Ended
March 31, 2015

Fiscal Year
Ended
March 31, 2016

Fiscal Year
Ended
March 31, 2017

76.2

76.6

77.2

63.4

64.6

63.9

1.0

1.0

0.5

143.4

188.6

605.6

Shareholders’ equity ratio = shareholders’ equity/total assets
Shareholders’ equity ratio based on the market value = aggregate market value of shareholders’ equity/total assets
Debt redemption years = interest-bearing debt/cash flow provided by operating activities
Interest coverage ratio = cash flow provided by operating activities/interest payment
Interest payment = “cash paid for interest” as described in the additional cash flow information following the consolidated statementsof cash flows(3) Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2017 and Fiscal Year 2018
Our basic policy on profit distributions to shareholders is to make stable distributions based on our consolidated performance, while
seeking to increase our enterprise value through active investments aimed at higher profitability and to increase net income per share. With
respect to retained earnings, we have actively invested and will continue to actively invest in expanding our customer bases for our domestic
business and our overseas businesses, with the aim of improving our corporate value. We also plan to use our retained earnings for strategic
investments for maintaining competitiveness and reinforcing growth. With these efforts, we seek to benefit our shareholders by improving
future profitability. We also intend to acquire treasury stock in a flexible manner taking into account the level of free cash flow as well as themarket environment, and will make effort to improve capital efficiency and return profits to our shareholders.
Based on this policy, we are scheduled to distribute 36 yen per share for the current fiscal year, which is an increase of 3 yen per share ascompared to the previous fiscal year. As a result, the dividend payout ratio on a consolidated basis will be 39.9% for the current fiscal year.
In addition, although we have paid only year-end dividends so far, we have decided to submit to the ordinary general meeting ofshareholders a proposal that we would pay interim dividends from the next fiscal year (i.e., the fiscal year ending March 31, 2018) in order toenhance the opportunities for us to return profits to our shareholders. For the fiscal year ending March 31, 2018, annual cash dividend per sharewill be 36 yen (18 yen out of which is an interim dividend), which remains unchanged from the current fiscal year.
(Note 1)

For more information about the above-mentioned interim dividends, please refer to the “Announcement of Introduction of Interim
Dividend Policy and Partial Amendment to Articles of Incorporation” disclosed by us today, on May 10, 2017.

(Note 2)

As disclosed by us today, on May 10, 2017, we are planning to carry out a share consolidation as to the shares of common stock of
the Company at the ratio of two (2) shares into one (1) share effective as of October 1, 2017. Please note that such shareconsolidation was not taken into consideration in determining the amount of the annual cash dividend for the next fiscal year (i.e.,
the fiscal year ending March 31, 2018) (estimated) mentioned above.
If the share consolidation had been carried out at the beginning of the fiscal year ending March 31, 2018, the annual cash dividend
per share for the next fiscal year would have been 72 yen (36 yen out of which would be an interim dividend).
For more information about the above-mentioned share consolidation, please refer to the “Announcement of Change of Number of
Shares in One Unit of Shares, Share Consolidation and Partial Amendment to Articles of Incorporation” disclosed by us.

- 11 -

2.

Basic Policies regarding Selection of Accounting Standards

Our group has been preparing our consolidated financial statements based on U.S. accounting standards prior to the introduction of theaccounting standards for consolidated financial statements in Japan and, for this reason, we have been adopting U.S. accounting standards.
In view of adopting International Financial Reporting Standards in the future, our group is making efforts to prepare internal manuals andguidelines.

- 12 -

3.

Consolidated Financial Statements (Unaudited)(1) Consolidated Balance Sheets
AmountIncreased/(Decreased)
Millions of Yen

Accounts

As of March 31, 2016

As of March 31, 2017

(Assets)

Millions of Yen

Millions of Yen

Cash and cash equivalents

34,05933,995Time deposits

2,131

2,722

591

Marketable securities

1,880

1,457

(423)

Notes and accounts receivable
Allowance for returns anddoubtful receivables
Inventories

26,93625,563(1,373)(2,229)44,445(2,477)
43,822

(248)
(623)

Deferred income taxes

3,832

4,049

217

Other current assets

5,797

4,683

(1,114)

116,851

113,814(3,037)

Land

21,677

21,555(122)

Buildings and building improvements

65,056

72,664

7,608

Machinery and equipment

17,552

17,722

170

Construction in progress

5,419

274

(5,145)

109,704

112,215

2,511(55,766)(56,927)(1,161)53,93855,2881,350

Investments in affiliated companies

20,713

20,868155

Investments

56,021

59,847

3,826

Goodwill

17,911

16,071(1,840)

Other intangible assets

12,112

11,849(263)

Prepaid pension expense

8,145

10,287

2,142

Deferred income taxes

1,036

1,060

24

Other

6,127

5,874

(253)

122,065

125,856

3,791

292,854294,958

2,104

I. Current assets

Total current assets(64)

II. Property, Plant and Equipment

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

Total other assets
Total Assets- 13 -

Accounts

As of March 31, 2016

As of March 31, 2017

(Liabilities)

Millions of Yen

Millions of Yen

AmountIncreased/(Decreased)
Millions of Yen

11,7597,716(4,043)

Trade notes

1,431

1,438

7

Trade accounts

12,017

11,605(412)

Other payables

6,106

6,185

79

19,554

19,228

(326)

7,152

7,093

(59)

Income taxes payable

711

2,964

2,253

Current portion of long-term debt

293

50

(243)

I. Current Liabilities
Short-term bank loans
Notes and accounts payables

Accrued payroll and bonuses

Other current liabilities
Total current liabilities

4,874

4,008

(866)

44,34341,059(3,284)

95

185

90

II. Long-term liabilities
Long-term debt
Liabilities for termination and retirement
benefit
Deferred income taxes

1,703

1,956

253

15,58817,862

2,274

Other long-term liabilities

1,724

1,414

(310)

Total long-term liabilities

19,11021,4172,307

Total liabilities

63,45362,476(977)

13,26013,260-(Equity)
I. Common stock
II. Additional paid-in capital

29,68629,707

21

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

162,196

170,062

7,866

5,177

1,212

(3,965)

Unrealized gain on securities

17,966

21,075

3,109

Pension liability adjustments(1,035)

(414)

621

V. Treasury stock, at cost
Total Wacoal Holdings Corp.
shareholders’ equity
VI. Noncontrolling interests
Total equity(2,876)(7,334)(4,458)224,374

227,568

3,194

5,027
229,401

4,914
232,482

(113)
3,081

292,854294,958

2,104

Total liabilities and equity- 14 -

(2) Consolidated Statements of Income

Accounts

Fiscal Year Ended
March 31, 2016

Fiscal Year Ended
March 31, 2017％

Millions of Yen％

202,917100.0

195,881100.0(7,036)

Cost of sales
Selling, general and administrative
expenses

95,901

47.3

92,95047.5(2,951)

93,151

45.9

91,86646.9(1,285)

Total operating costs and expenses

189,052

93.2

184,816

94.4(4,236)

13,865

6.8

11,0655.6(2,800)Millions of Yen
I.

AmountIncreased/(Decreased)

Net Sales

Millions of Yen

II. Operating costs and expenses

Operating income
III. Other income (expenses)
Interest income

161

157

(4)

Interest expense

(65)

(27)

38

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

1,057

1,176

119

90

441

351

(20)

1

21

-

3,770

3,770

Total other income (expenses)

1,092

0.6

5,504

2.9

4,412

14,957

7.4

16,5698.5

1,612

Current

3,442

1.7

4,830

2.5

1,388

Deferred

1,288

0.7

450

0.2

(838)

Total income taxes

4,730

2.4

5,280

2.7

550

10,2275.0

11,289

5.8

1,062

1,245

0.7

1,359

0.7

114

11,472

5.7

12,648

6.5

1,176

(313)

(0.2)

(123)

(0.1)

190

11,1595.5

12,525

6.4

1,366

Income before income taxes and equity in
net income of affiliated companies

(131)

(14)

117

Income taxes

Income before equity in net income ofaffiliated companies
Equity in net income of affiliatedcompanies
Net income
Net income attributable tonon-controlling interests
Net income attributable to Wacoal
Holdings Corp.

- 15 -

(3) Consolidated Statements of Comprehensive Income
Fiscal Year Ended
March 31, 2016

Fiscal Year Ended
March 31, 2017

AmountIncreased/(Decreased)

Millions of Yen

Millions of Yen

Millions of Yen

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

11,472

12,648

1,176(5,670)(4,079)1,591

Net unrealized gain on securities(2,880)

3,109

5,989

Accounts

Pension liability adjustments(2,971)

618

3,589

Other comprehensive income (loss)(11,521)(352)

11,169(49)

12,296

12,345

(270)

(6)

264

(319)

12,29012,609Comprehensive income (loss)
Comprehensive income attributable tononcontrolling interests
Comprehensive income (loss) attributable to
Wacoal Holdings Corp.
(4) Consolidated Statements of Equity
Fiscal Year Ended March 31, 2016

EquityShares of
Outstanding Common
Item

Common

Stock

Stock
Thousandshares

As of April 1, 2015
Cash dividends paid to
Wacoal Holdings Corp.
shareholders(30.00 yen per share)
Cash dividends paid tononcontrolling interests
Repurchase of treasury
stock
Sale of treasury stock
Equity transactions with
noncontrolling interest
shareholders
Other
Net income
Other comprehensive
income (loss)
As of March 31, 2016

140,841

Additional
Paid-in
CapitalRetained

Accumulated other

Earnings

comprehensive
incomeTreasurystock

EquityNoncontrolling
Interests

Total Equity

Millionsof YenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillionsof Yen13,26029,642

155,264

33,586(2,895)

228,857

2,711

231,568(4,225)(4,225)

(5)

(7)

1

1

22

140,859

Total
Shareholders’44

13,26029,686(2)
11,159162,196- 16 -

25(11,478)
22,108(2,876)(7)(4,225)

(206)

(206)
(7)

1
-

2,252

1
2,252

67
11,159313

67
11,472(11,478)
224,374

(43)
5,027

(11,521)
229,401

Fiscal Year Ended March 31, 2017
EquityShares of
Outstanding Common
Item

Common

Stock

Stock
Thousandshares

As of April 1, 2016
Cash dividends paid to
Wacoal Holdings Corp.
shareholders(33.00 yen per share)
Cash dividends paid tononcontrolling interests
Repurchase of treasury
stock
Other
Net income
Other comprehensive
income (loss)
As of March 31, 2017

140,859

Additional
Paid-in
CapitalRetained

Accumulated other

Earnings

comprehensive
incomeTreasurystock

EquityNoncontrolling
Interests

Total Equity

Millionsof YenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillionsof Yen13,26029,686

162,196

22,108(2,876)

224,374

5,027

229,401(4,648)(4,648)(3,703)(4,522)

55

137,211

Total
Shareholders’

13,26021(11)
12,52529,707

170,062- 17 -

64(235)
21,873(7,334)(4,648)(4,522)

(167)

(167)
(4,522)74
12,52548
123

122
12,648(235)
227,568

(117)
4,914

(352)
232,482(5)Consolidated Statements of Cash Flows

Accounts

I. 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) Impairment charges on property, plant and equipment(6) Gain or loss on sales or exchange of marketable securities
and investments - net(7) Valuation loss on marketable securities and investments –net(8) Equity in net income of affiliated companies,
less dividends(9) Changes in assets and liabilities
Decrease (increase) in notes and receivable
Increase in inventories
Decrease (increase) in other current assets
Decrease in notes and accounts payable
Decrease in liabilities for termination and retirement
benefits(Decrease) increase in other liabilities(10) Other
Net cash provided by operating activities
II.
1.
2.
3.

Investing activities
Increase in time deposits
Decrease in time deposits
Proceeds from sale and redemption of marketablesecurities
4. Payments to acquire marketable securities
5. Proceeds from sale 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 Proceeds from sale of shares of an affiliated company
11. Other
Net cash used in investing activities
III. Financing activities
1. Net decrease (increase) in short-term bank loans
2. Proceeds from issuance of long-term debt
3. Repayment of long-term debt
4. Repurchase of treasury stock
5. Sale of treasury stock
6. Dividends paid on common stock
7. Dividends paid to noncontrolling interests
8. OtherNet cash used in financing activities
IV. Effect of exchange rate changes on cash and cash
equivalents
V. Net decrease in cash and cash equivalents
VI. Cash and cash equivalents, beginning of year
VII. Cash and cash equivalents, end of year

Fiscal Year Ended
March 31, 2016

Fiscal Year Ended
March 31, 2017

AmountIncreased/(Decreased)

Millions of Yen

Millions of Yen

Millions of Yen

11,472

12,648

1,176

4,815
(117)
1,288

5,032
264
450

217
381
(838)

59
256

(3,374)-(3,433)
(256)

(90)

(441)

(351)

20

(1)

(21)

(482)

(837)

(355)

(195)
(1,008)(1,111)
(45)

882
(378)
475
(95)

1,077
630
1,586
(50)

(2,101)(261)
135
12,635

(417)
1,615
528
16,351

1,684
1,876
393
3,716

(2,459)2,889(4,336)
3,717(1,877)
828

1,118
(533)
775
(7,546)(1,432)235(516)
6(3,944)(11,407)

1,257
(295)
3,585
(5,504)(1,941)
835
(387)
4
33
(3,032)

139
238
2,810
2,042
(509)
600
129
(2)
3,977
8,375

2,101
(4,463)(7)
1(4,225)(206)
2,252(4,547)(3,613)250(403)(4,522)(4,648)(167)
48(13,055)(5,714)250
4,060(4,515)
(1)
(423)
39
(2,204)(8,508)(1,032)(4,351)
38,41034,059(328)(64)
34,05933,995704
4,287(4,351)(64)- 18 -

Additional Cash Flow Information

Accounts

Fiscal Year Ended
March 31, 2016

Fiscal Year Ended
March 31, 2017

AmountIncreased/(Decreased)

67
5,756

27
2,812

(40)
(2,944)

736

795

59

Cash paid forInterest
Income taxes
Noncash investing activities
Acquisition of fixed assets by assuming payment
obligation(6) Notes on Going Concern
Not applicable.

(7) Basic Significant Matters in Preparation of Consolidated Financial Statements(i)

Matters Regarding the Scope of Consolidation and Application of the Equity Method

Major consolidated subsidiaries:
Wacoal Corporation, Peach John Co., Ltd., Lecien Corporation, Kyushu Wacoal Manufacturing Corp., Torica Co., Ltd., Nanasai Co.,
Ltd., Wacoal International Corp., Wacoal America, Inc., Wacoal Europe Ltd., Wacoal EMEA Ltd., Wacoal Europe SAS, Wacoal
Hong Kong Co., Ltd., Wacoal Investment Co. (Taiwan), Ltd., Wacoal China Co., Ltd., Wacoal International Hong Kong Co., Ltd.
and A Tech Textile Co., Ltd.
Major Affiliated Companies:
Shinyoung Wacoal Inc., Taiwan Wacoal Co., Ltd. and Thai Wacoal Public Co., Ltd.
(ii) Changes Regarding Subsidiaries and Affiliates
Consolidated (new):
Taiwan Peach John Ltd.
Consolidated (excluded):
Wacoal (UK) Ltd., Eveden Huit SAS
Equity Method (excluded):Phinetex B.V.
(iii) Standard of Preparation of Consolidated Financial Statements
The consolidated financial statements have been prepared based on terms, format and preparation methods in compliance withaccounting standards generally accepted in the United States as required in connection with the issuance of American Depositary
Receipts. For this reason, the consolidated financial statements may be different from those that have been prepared based on theConsolidated Financial Statement Regulations and the Standard of Preparation of Consolidated Financial Statements in Japan.
(iv) Significant Accounting Policiesa.

Valuation Standard of Inventories
The average cost method was mainly used for goods, products and supplies, and the first-in first-out method was used for
raw materials, with both valued at the lower of cost or market.

b.

Valuation Standard of Property, Plant and Equipment and Method of Depreciation
Property, plant and equipment are valued at the acquisition cost. Depreciation expenses are calculated mainly using the
fixed-rate method based on the estimated useful lives of the assets (the lease term is used for capitalized leased assets).

c.

Valuation Standard of Marketable Securities and Investments
Based on the provisions of U.S. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC)320, marketable securities and investments have been classified as “trading securities”, “available for sale securities” and“held-to-maturity securities”. “Trading securities” and “available for sale securities” are valued at fair value and“held-to-maturity securities” are valued at amortized cost. Gain or loss on sale of marketable securities is calculated basedon acquisition cost using the moving-average method. Nonmarketable securities are valued at cost using themoving-average method.

d.

Liabilities for Termination and Retirement Benefits
This is accounted for based on FASB ASC 715.
- 19 -

e.

Consumption Taxes
Consumption taxes have been excluded from sales.

f.

Consolidated Statements of Cash Flows
In preparing the consolidated cash flow statements, highly liquid investments with original maturities of three (3) months
or less have been included in cash and cash equivalents.

(8) Notes to the Consolidated Financial Statements(i)Marketable Securities and Investments(Millions of Yen)
As of March 31, 2016
Cost

As of March 31, 2017

Gross
Gross Unrealized
Unrealized Gain
Loss

Fair
Value

Cost

Gross
Unrealized Gain

Gross Unrealized
Loss

Fair
Value

Marketable Securities
National debt
securities
10
0
10
10
0
10
Corporate debt
securities
395
0
395
Mutual Fund
1,083
279
1
1,361
701
168
1
868
Total
1,488
279
1
1,766
711
168
1
878
Investments
Equity securities
23,59230,336
3
53,925 23,153
34,833
10
57,976
Total
23,59230,336
3
53,925 23,153
34,833
10
57,976(Note) Securities which are classified as trading and available for sale securities are shown in the above table and investments in nonmarketable
equity securities for which there are no readily determinable fair values are not shown.
(ii) Contract Amount, Market Value and Valuation Profit/Loss of Derivative Transactions
Our subsidiaries have been utilizing foreign exchange forward contracts to prepare for exposure to market risks from changes in foreignexchange rates. The disclosure of gains and losses of such contracts has been omitted as the amounts involved are non-material.
(iii) Per Share Information

Net income attributable to Wacoal Holdings Corp.
Number of average shares issued during the year
(excluding treasury stock)
Net income attributable to Wacoal Holdings Corp.
per share
Diluted net income attributable to Wacoal
Holdings Corp. per share

Fiscal Year Ended
March 31, 2016
11,159 million yen

Fiscal Year Ended
March 31, 201712,525 million yen

140,842,184 shares

138,966,630 shares

79.23 yen

90.13 yen

79.00 yen

89.85 yen

- 20 -

(iv) Segment Informationa.

Operating Segment Information

Fiscal Year Ended March 31, 2016 (April 1, 2015 - March 31, 2016)(Millions of Yen)
Wacoalbusiness(Domestic)

Wacoalbusiness(Overseas)

Peach Johnbusiness

Other

Total

Elimination

Consolidated

Net sales(1) External customers

120,570

51,869

11,19019,288202,917-

202,917(2) Intersegment

1,427

8,595

775

6,102

16,899(16,899)-

Total

121,997

60,464

11,96525,390219,816(16,899)

202,917

Operating costs and expenses

113,187

56,031

11,70725,026205,951(16,899)

189,052

Operating income

8,810

4,433

258

364

13,865-

13,865

Fiscal Year Ended March 31, 2017 (April 1, 2016 - March 31, 2017)(Millions of Yen)
Wacoalbusiness(Domestic)

Wacoalbusiness(Overseas)

Peach Johnbusiness

Other

Total

Elimination

Consolidated

Net sales(1) External customers

118,389

48,423

11,107

17,962

195,881-

195,881(2) Intersegment

1,098

9,236

1,006

5,947

17,287(17,287)-

Total

119,487

57,65912,11323,909213,168(17,287)

195,881

Operating costs and expenses

112,528

54,604

11,73923,232

202,103(17,287)

184,816

Operating income

6,959

3,055

374

677

11,065-

11,065(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,
hosiery, and 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, shop design and implementation, etc.

- 21 -

b.

Information by Region

Fiscal Year Ended March 31, 2016 (April 1, 2015 to March 31, 2016)(Millions of Yen)
Elimination or
corporateJapan

Asia/Oceania

Europe/N.A.

Total

External customers

150,673

17,90634,338202,917-

202,917

II.

Operating income

9,308

1,381

3,176

13,865-

13,865

III.

Long-lived assets

46,136

4,490

3,312

53,938-53,938I.

Consolidated

Net sales

Fiscal Year Ended March 31, 2017 (April 1, 2016 to March 31, 2017)(Millions of Yen)

I.

Japan

Asia/Oceania

Europe/N.A.

Total

Elimination or
corporate

Consolidated

Net sales
External customers

147,061

19,187

29,633

195,881-

195,881

II.

Operating income

7,738

1,758

1,569

11,065-

11,065

III.

Long-lived assets

47,452

4,661

3,175

55,288-55,288(Note) 1.
2.

3.
4.

Countries 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.
Long-lived assets include property, plant and equipment.
c.

Overseas Sales

Fiscal Year Ended March 31, 2016 (April 1, 2015 - March 31, 2016)(Millions of Yen)I.

Overseas net sales

II.

Consolidated net sales

Asia/Oceania

Europe/N.A.

Total

17,90634,33852,244--

202,917

8.8%

16.9%

25.7%

Asia/Oceania

Europe/N.A.

Total

19,187

29,633

48,820--195,881

9.8%

15.1%

24.9%

III. Ratio of overseas net sales to total consolidated net
sales
Fiscal Year Ended March 31, 2017 (April 1, 2016 - March 31, 2017)(Millions of Yen)I.

Overseas net sales

II.

Consolidated net sales

III. Ratio of overseas net sales to total consolidated net
sales(Note) 1.
2.

Countries 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- 22 -

(v) Status of Sales
Fiscal Year Ended March 31, 2016

Type of productAmountMillions of Yen

Fiscal Year Ended March 31, 2017

Distribution ratio%

AmountMillions of Yen

Distribution ratio%

Innerwear
Foundation and lingerieNightwear

151,166
10,098Children’s underwear
Subtotal
Outerwear/Sportswear
Hosiery
Other textile goods andrelated products
Other
Total

74.5
5.0

145,188
9,154

74.1
4.7

1,386

0.7

1,429

0.7

162,650

80.2

155,771

79.5

19,074
2,178
7,161

9.4
1.1
3.5

17,189
2,235
9,346

8.8
1.1
4.8

11,854
202,9175.8
100.0

11,340195,8815.8
100.0(vi) Significant Subsequent Events
Not applicable.

Omission of Disclosure:
We have omitted notes regarding the lease transactions, related-party transactions, stock options and income taxes etc. because we believe it is
not sufficiently necessary to disclose information on these matters in these financial statements.

- 23 -

4.

Other
Changes to Corporate Officers

The scheduled changes to the composition of the board of directors after the conclusion of the 69th Ordinary General Meeting of
Shareholders to be held on June 29, 2017 will be as follows.
1.

Promotion of Director (as of June 29, 2017 (scheduled))
Current Director Masashi Yamaguchi is scheduled to be promoted to and appointed as Managing Director.

2.

Resignation of Director (as of June 29, 2017 (scheduled))
Mamoru Ozaki is scheduled to resign as Director (outside director).

3.

New appointment of Director (as of June 29, 2017 (scheduled))
Shigeru Saito, Representative Director and Chairman and CEO of Tose Co., Ltd., is schedu led to be appointed as
Director (outside director).

4.

Resignation of Audit & Supervisory Board Member (as of June 29, 2017 (scheduled))
Yoko Takemura is scheduled to resign as Audit & Supervisory Board Member (outside auditor).

5.

New appointment of Audit & Supervisory Board Member (as of June 29, 2017 (scheduled))
Mitsuhiro Hamamoto, partner of Kikkawa Law Offices, is scheduled to be appointed as Audit & Supervisory Board
Member (outside auditor).

The management and administrative organization after the conclusion of the 69th Ordinary General Meeting of Shareholders to beheld on June 29, 2017 will be as follows:
Management and Administrative Organization for the 70th Fiscal Year
Director/Audit & Supervisory Board Member
Representative Director and President
Director and Vice President
Director and Vice PresidentManaging Director
Director (outside director)
Director (outside director)
Director (outside director)

Name
Yoshikata Tsukamoto
Hironobu Yasuhara
Masaya Wakabayashi
Masashi Yamaguchi
Atsushi Horiba
Madoka Mayuzumi
Shigeru Saito (newly appointed)

Audit & Supervisory Board Member
Audit & Supervisory Board Member
Audit & Supervisory Board Member(outside auditor)
Audit & Supervisory Board Member(outside auditor)
Audit & Supervisory Board Member(outside auditor)

Tomoki Nakamura
Kiyotaka Hiroshima
Akira Katayanagi
Hiroshi Shirai
Mitsuhiro Hamamoto (newly appointed)- 24 -

(Reference)
The management and administrative organization for the 13th term of Wacoal Corporation will be as follows:
Management and Administrative Organization for the 13th Term
Director/ Audit &Supervisory Board Member
Representative Director
and Chairman
Representative Director

Corporate Officer

Name

Responsibility

Yoshikata Tsukamoto
President andCorporate Officer

Hironobu Yasuhara
Yuzo Ide

Chairman of Wacoal Europe Limited

Masashi Yamaguchi

In charge of Administration and General Manager
of Personnel Division
General Manager of Wacoal Brand Operation
Division
General Manager of Chain Stores Operation
Division
General Manager of Retail Operation Division

Director
Director

Vice President andCorporate Officer
Vice President andCorporate Officer
Senior Managing
Corporate Officer
Managing Corporate
OfficerManaging Corporate
Officer
Corporate Officer
Corporate Officer

Director

Corporate Officer

Junko Kasai

Director
Director
Director
Director
Director

Audit & Supervisory Board
MemberAudit & Supervisory Board
MemberTomoyasu Ito
Kuniharu Suzuki
Hidehiko Imaizumi
Yasuo Kamoshita
Masaaki Yajima

Chief of Corporate Planning Office
General Manager of Technology/Production
Division
Chief of Diversity Promotion and Customer Service
CenterKiyotaka Hiroshima
Hisashi Mazuyama

Managing Corporate
OfficerManaging Corporate
Officer
Corporate Officer

Hideo Senoue

Corporate Officer

Hiroshi Shimoyama

Corporate Officer

Toshihiro Inokuma

Corporate Officer

Takahiko Hasegawa

Corporate Officer
Corporate Officer
Corporate Officer

Hiroshi Imai
Shuji Morimoto
Kazuhiro Shibahara

Corporate Officer

Toshiaki Sato

Corporate Officer

Atsushi Kotani

Corporate Officer

Katsuya Kodama

Corporate Officer
Corporate Officer
Corporate Officer

Hiroyuki Sekiguchi
Takuya Miura
Masami Ono

Masatoshi Okuyama
Akira Miyagi

General Manager of Department Store Sales
Control of Wacoal Brand Operation Division
General Manager of East Japan Sales Control of
Wacoal Brand Operation Division
General Manager of Corporate Planning Division of
Wacoal Holdings Corp.
General Manager of Omni-channel Strategy
Promotion, Corporate Planning Office
General Manager of Public Relations andAdvertising, Corporate Planning Office
Personnel Administrator of Personnel and
Administration Division
Director of Human Science Research Center
General Manager of Information System Division
General Manager of Product Control, Wacoal
Brand Operation Division
General Manager of West Japan Sales Control of
Wacoal Brand Operation Division
General Manager of Sales Control, Chain Stores
Operation Division
General Manager of Sales Control, Retail Operation
Division
General Manager of Direct Marketing Operations
General Manager of International Division
Director, General Manager of Wacoal China Co.,Ltd.

- End -

- 25 -