Trias Company Memo29-11-2010(7483/TSE1) DOSHISHA CORPORATION
Summary of Business Results Meeting for the 2nd Quarter of Fiscal Year Ending March 31, 2011

On November 17, 2010, Trias Corporation attended the Q2 FY03/11 Business Results Meeting ofDOSHISHA CORPORATION (hereinafter DOSHISHA or the Company). A summary of both thepresentation delivered by Masayuki Nomura, Representative Senior Managing Director, as well as theQ&A Session that followed, is presented below.
[Summary of Q2 FY03/11 Consolidated Business Results]
Net sales and incomes in the semi-annual period of April-September grew at a pace that was prettymuch in line with the Company’s original forecast of May 7. Net sales reached ¥41.7 billion, up 5.1%
on a year-on-year basis. Sales from its product development business was ¥20.5 billion, up 2.7% y/y,while its wholesale operations generated ¥20.1 billion in sales, up 7.7% y/y.
Growth in the product development business was attributed to the sales increase in the audiovisual
products, particularly liquid crystal television units, driven by demand from the government’s “eco-point”
incentive system and the transition to terrestrial digital TV broadcasting. In addition, sales of low-priced
wines and food products, pressure cookers, thermos bottles and appliances to make confectionery
at home performed well, spurred by the trend to spend less and eat out less.
The wholesale business has seen gift product sales post double-digit growth by developing newmarkets. Shoes and accessories sales also grew as a result of a tie-up with famous brand makers.
Turning to nonconsolidated net sales by channel, turnover at home centers led the list, generating¥6 billion, up 11.8% y/y, followed by GMS, which grew 0.5% y/y to reach ¥5.5 billion. Discount storesplaced third, selling ¥5.1 billion of goods for a 4.4% y/y growth, while volume electronics discount outlets
grew 33.7% y/y to ¥4.5 billion (led by strong growth in audiovisual products) and supermarket sales rose
7.7% y/y to ¥3.6 billion. Sales from drugstores declined by ¥400 million, down 32.3% y/y, due tocontracting demand for protective masks for colds and the flu.
Consolidated（\Million）
Sales
Product Development
Wholesale
OthersCOGSSG&A
Operating Income
Ordinary Income
Net Profit

FY3/10 1H
Actual Weighting
39,696100.0%
19,98850.4%
18,752
47.2%
955
2.4%
10,097
25.4%
7,140
18.0%
2,956
7.4%
2,894
7.3%
1,725
4.3%

FY3/11 1H
Actual Weighting
41,718100.0%
20,51949.2%
20,196
48.4%
1,003
2.4%
10,634
25.5%
7,555
18.1%
3,079
7.4%
3,041
7.3%
1,768
4.2%

YoY
Change
5.1%
2.7%
7.7%
5.0%
5.3%
5.8%
4.2%
5.1%
2.5%

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained
herein are prepared based on reliable information that already exists in the public domain. The Company, however, does
not guarantee complete accuracy. Any opinion or information contained in the Memo is relevant as of the day of theInformation Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsibility.

1Copyright © 2010 Trias Corporation

All rights reserved.

[FY03/11 Earnings Forecast]
DOSHISHA projects FY03/11 consolidated net sales to reach ¥91 billion, up 5.0% y/y, while operating
income will hit ¥8 billion, up 3.9% y/y. While its first half performance had no impact on the forecast fornet sales and incomes for the full year, the breakdown for net sales is as follows: the productdevelopment business, based on 1H trends, was expected to grow 6.9%, but has been revised to 2.8%growth. Meanwhile, its wholesale operation was expected to hit 3.4% growth, but is now projected
to reach 7.3%.
There were two factors behind the revision of the forecasted income growth for the productdevelopment business: The first was due to the fact that sales of cabinetry, apparel and hobby products
were sluggish, while the second was the result of delays in the development of new lineups ofwristwatches and shoes, as well as in the startup of H&B, which specializes in beauty and health foodproducts. Factors that led to the upward revision of the wholesale operation include robust sales of gift
products, imported handbags and jewelry.
Among the products with the best growth potential are LED lights, thermos bottles, pressure cookers,and HALEIWA brand products, as well as such goods developed in-house as Japanese sake andpickled plums. Sales of thermos bottles, for instance, have been growing by some 300% y/y, with volume
production to begin at a Company factory from December this year, and generate some ¥1.2 billion for
the full year. Moreover, DOSHISHA plans to begin marketing U.S. POLO and STARTER, two newly
licensed brands.
Consolidated

FY3/10（\Million）

1H Act.
2H Act.
FY Act.
Sales
39,696
46,93386,629Product Development
19,98823,89843,886Wholesale18,752
21,87340,625
Others
955
1,161
2,116
COGS
10,097
12,13622,233
SG&A
7,140
7,392
14,532
Operating Income
2,956
4,745
7,701
Ordinary Income
2,894
4,699
7,593
Net Profit
1,725
2,568
4,293
*Note: FY3/11 estimates as of the end of 1H FY3/11.

FY3/11
1H Act.
41,71820,51920,196
1,003
10,634
7,555
3,079
3,041
1,768

2H Est.
49,282
24,60023,4001,282
12,740
7,819
4,921
4,959
2,882

FY Est.
91,00045,11943,596
2,285
23,374
15,374
8,000
8,000
4,650

YoYChange
5.0%
2.8%
7.3%
8.0%
5.1%
5.8%
3.9%
5.4%
8.3%

[Q&A]
Q1: It looks as if newly generated sales by channel have been slowing down compared tothe previous fiscal year (3.2% in H1 this year versus 5.4% for H1 last year). Why is this?
A1: We believe the ratio will improve to last year’s levels over the course of the full term this yearwith the inclusion of our projected H2 performance.
Q2: Mid-term figures show that sales at both 100-yen discount stores and over the Web havedeclined by 13.6% and 8.4% respectively. Why is this?

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained
herein are prepared based on reliable information that already exists in the public domain. The Company, however, does
not guarantee complete accuracy. Any opinion or information contained in the Memo is relevant as of the day of theInformation Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsibility.

2Copyright © 2010 Trias Corporation

All rights reserved.

A2: The 100-yen discount store market itself is facing difficulty at this time. Such stores are under
severe price competition from home centers and other discount retail outlets, which sell similar
goods at prices less than ¥100. Given this situation, our Company has lagged in terms of anorganized response, as well as in our product development to meet the new challenge. Web-based
sales are also under competitive pressure as more and more GMS, home centers and volume
electronics discounters are entering the Internet mail-order business. But these retailers also carryour products and they are performing quite well. It should be noted, however, that the Net sales ofthe major volume discounters are being posted in our GMS channel. On the other hand, we have
yet to make significant forays with retailers that sell exclusively over the Internet (those that lackreal-world outlets), and we have been tardy in our planning and marketing effort in this area.
Q3: I understand that the unit price of Beaujolais Nouveau wine to be sold from H2 has fallen.
Will that be reflected in your earnings forecast?
A3: We know that low-priced Beaujolais Nouveau wines have become available and have taken steps
to account for their impact. We are ranked the seventh largest importer of the wine and third in termsof importing Villages Nouveau. The reason for this is that we import a variety of award-winning
Nouveau wines on a strategic basis, which has gained a considerably following among GMS andother major clients. We have taken the lower-priced variants into account and sales have been
going ahead as planned. In addition, we only order and ship bottles that customers reservedin advance to minimize the inventory risk of unsold bottles.
Q4: How will the termination of the eco-point program affect your Company?
A4: We expect some level of adverse impact after July 2011. In order to sustain and expand market
share in a contracting market, we intend to emphasize to clients that we operate our own home
appliance service center, which is a key edge, and establish as a major second-tier player following
the major manufacturers. In addition, we will be pushing forward development of new businessareas such as the field of digital signage, which can display images, video and other digital content
on LCD displays. Demand for digital signage as an advertising medium at restaurants, bars or otherhigh-traffic public facilities is growing.
Q5: How do you see 2H sales of digital TVs?
A5: Digital TVs comprise the bulk of our audiovisual product turnover, and sales have been solid in 1H.
Due to the termination of the eco-point program, demand for our digital TVs is being frontloadedin 2H—and we project another ¥1 billion will be added to sales in that half.
Q6: How about the risks associated with your China operations?
A6: It’s true that a growing labor shortage in China is threatening to impact shipment deadlines.
However, we have a quality control team from Japan permanently assigned to our China factory and
it is taking steps to reduce the risk of delayed shipments. We are also making progressin establishing plants in Thailand and Bangladesh to broaden our overseas production capacity.

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained
herein are prepared based on reliable information that already exists in the public domain. The Company, however, does
not guarantee complete accuracy. Any opinion or information contained in the Memo is relevant as of the day of theInformation Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsibility.

3Copyright © 2010 Trias Corporation

All rights reserved.

【Reference】 DOSHISHA CORPORATION (Securities Code: 7483)
Key Financial Data and Business Results (Consolidated)
Key Financial Data (Consolidated)

Key Stock Indicators (Consolidated)
No. of Shares Issued
No. of Treasury Stock
Market Value (\million)
BPS (\)ROE (%) ※1
ROA (%) ※2
PER (times）
PCFR(times) ※3
PBR (times)
Share Price (\)
Unit Share (shares)

Sept. 2010
Sept. 2010
Nov.29, 2010
Mar. 2010
Mar. 2010
Mar. 2010
FY3/11 est.
Mar. 2010
Mar. 2010
Nov.29, 2010
Nov.29, 2010
Nov.29, 2010

Average Daily Volume (shares) ※4

Consolidated
Operating
Net Sales(\million）
IncomeFY3/0782,026
5,131FY3/08
83,1405,143
FY3/0980,898
5,014
FY3/1086,6297,701
1H FY3/1
41,7183,079
FY3/11 fcst.
91,0008,000

18,687,818
538,017
34,6662,083.3
12.0
9.5
7.2
7.5
0.9
1,855
100
51,585

Total Assets (\million)
Shareholders' Equity (\million)
Interest-Bearing Debt (\million)
Equity Ratio (%)
Ratio of Interest-Bearing Debt (%) ※5
Free Cash Flows (\million) ※6

Mar. 2010
Mar. 2010
Mar. 2010
Mar. 2010
Mar. 2010
Mar. 2010

48,09237,653
2,187
78.3
5.85,157※1 ROE=Current Net Income÷Averaged Shareholders' Equity
of beginning of term and term end※2 ROA=Current Net Income÷Averaged Total Assets
of beginning of term and term end※3 PCFR=Maket Value÷(Current Net Income+Depreciation)※4 Average Daily Volume=Average Daily Volume for the last 12 month※5 Ratio=Interest-Bearing Debts÷Shareholders' Equity※6 Free Cash Flows=Operating CF+Investment CF

OrdinaryDividend
Net Income
EPS (\)
Incomeper Share (\)
5,338
3,298
170.7
45.00
5,183
2,849
154.4
45.00
5,131
2,558
140.9
45.00
7,594
4,293
236.5
55.00
3,041
1,768
97.5
27.50
8,000
4,650
256.255.00*Note: FY3/11 forecast announced on May 7, 2010

Stock price charts and RSI（Yen）

3,000

300

2,500

Close share price

1 month moving average

3 month moving average

RSI [days]（Right）

250

2,000

200

1,500

150

1,000

100
RSI

500

50

70
30-1010ov-N29-O
29

ep-S29-A
29

ct-

1010ug-

10ul-J
29

un-1-J
29

ay-M

0101029-Apr-

10ar-M

29

0-1
29

eb-F
28-J

an-

09
29

29-Dec--0ov
-N
29

100

90

Source: Prepared by Trias Corp. with Bloomberg data.
Note: RSI, Relative Strength Index, is the index representing the ratio of overbought or oversold share prices.
In general, over 70 in RSI shows overbought share price range, while below 30 shows oversold share price range.
RSI=averaged share price appreciation for N days÷(averaged share price appreciation for N days
+averaged share price decline for N days) x100

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained
herein are prepared based on reliable information that already exists in the public domain. The Company, however, does
not guarantee complete accuracy. Any opinion or information contained in the Memo is relevant as of the day of theInformation Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsibility.

4Copyright © 2010 Trias Corporation

All rights reserved.