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Results Briefing Summary
Summary of FY3/24 Consolidated Results
Earnings miss forecasts released on May 10, 2023
Consolidated(\ million)

Net sales

FY3/23
Actual

FY3/24Composition
ratio

ActualYoY

Composition
ratio

ChangeVs. forecast

Pct. Change

Forecast

ChangePct. Change

105,709100.0%

105,824100.0%

114

0.1%

111,000- 5,175- 4.7%

54,77751.8%

56,879

53.7%

2,102

3.8%

59,000- 2,120- 3.6%

46,65444.1%

45,205

42.7%- 1,448- 3.1%

48,000- 2,794- 5.8%

Others

4,278

4.0%

3,739

3.5%

- 538

- 12.6%

4,000

- 260

- 6.5%

Gross profit

28,66627.1%

29,884

28.2%

1,218

4.2%

31,200- 1,315- 4.2%

SG&A expenses

20,613

19.5%

21,958

20.7%

1,344

6.5%

22,200- 241- 1.1%

Operating income

8,052

7.6%

7,926

7.5%

- 126

- 1.6%

9,000- 1,073- 11.9%Ordinary income

8,342

7.9%

8,412

7.9%

70

0.8%

9,000

- 587

- 6.5%Net income

5,621

5.3%

5,784

5.5%

162

2.9%

6,100

- 315

- 5.2%

Product Development
Model Business
Wholesale
Model BusinessAmid elevated and rising costs for raw materials and other inputs, the Company focused on sales of highly
profitable products in order to maintain a profitable earnings structure. As a result, full-year net sales edged
up 0.1% year on year. Gross profit increased due to an improvement in the gross margin, but selling,
general and administrative expenses rose, mainly reflecting an increase in sales promotion costs asconditions normalized after the COVID-19 pandemic. While this led to a modest decline in operating
income, ordinary income increased year on year, lifted by dividends from subsidiaries. The Company
missed its earnings forecasts.

Summary of FY3/24 Consolidated Results by Business Segment
Doshisha’s operations are largely divided into two business segments: the Product Development Model
Business and the Wholesale Model Business. The Product Development Model Business plans,
manufactures and sells original Doshisha products. The Wholesale Model Business is a comprehensive
sales proposal business, mainly focused on selling and planning sales promotions for leading domestic
and overseas brands and for products sourced from major manufacturers in Japan. The product range inthe Wholesale Model Business includes famous brand watches, bags and other items, and traditional
mid-year and year-end assorted gift packs prepared by Doshisha using merchandise sourced from leading
domestic manufacturers.

Product Development Model Business firm,
Wholesale Model Business weak
140.0

Product Development
Model Business

Wholesale
Model BusinessFamousbrands

NB
processingOthers* Figures in ( ) are composition ratio
Figures in [ ] are year on year change
120.0

101.0

105.7

[+4.6%]

105.8[+0.1%]

100.0

80.0

53.3
(52.9%)

54.7

56.8(51.8%)(53.7%)[+3.8%][+2.6%]

60.0(42.6%)

27.3(27.0%)

15.4(15.2%)[+2.0%](15.6%)

43.0
20.0

16.0

15.7

40.0

46.6(44.1%)[+8.4%](14.6%)[-3.9%]

30.6

45.2(29.0%)[+12.0%](42.7%)[-3.1%]

29.7(28.1%)[-2.7%]

0.0(¥ billion)

FY3/22

FY3/23

FY3/24【Product Development Model Business – Highlights】
・Products for single-price retailers> Sales categories expanded to include clothing accessories, daily necessities, consumables, andconfectionery and food products.

・Apparel> Sales channels were deepened and expanded through the launch of apparel and accessories using
licensed brands.

・Other> There were signs of recovery for the mainstay EVERCOOK range. Sales of OEM food products andlighting products such as LED ceiling lights were also strong.

・Seasonal products (fans and heaters)> Sales declined year on year due to weaker demand caused by poor spring weather and a mildwinter.

【Wholesale Model Business – Highlights】
・Famous brands> Sales of smartwatches, accessories and suitcases for inbound demand were strong.
> Doshisha launched and started operating official websites for STANLEY and several other brands.
> Sales in the branded bag and watch category were weak due to higher sourcing costs.

・Amusement (NB processing)> Prizes for amusement facilities featuring popular game characters registered strong sales.

・Gifts (NB processing)> Gifts and branded confectionary developed by Doshisha sold well.
> However, this was insufficient to offset weak sales from food and beverage deliveries for people
receiving treatment at home for COVID-19, a standalone business project from the previous fiscal year.

Review of Medium-Term Business PlanAs announced on May 9, 2024, the Company has revised its Medium-Term Business Plan FY3/23 –FY3/25, released on May 9, 2022.
Anchored by three strategies – growth strategy, balance sheet strategy and ESG strategy – the previous
plan targeted non-consolidated net sales of ¥118 billion and consolidated ordinary income of ¥10 billion in
FY3/25. The Company has been implementing various initiatives to achieve these targets. However, due tothe rising cost of raw materials and other inputs and the sharp fall in the yen, conditions around productdevelopment and procurement have changed more than expected since the plan was formulated.
In response to these changes in the operating environment, we will focus on building a more agile
business structure and on further strengthening the business base in FY3/25. Consequently, we havedecided to push back the plan’s quantitative target of consolidated ordinary income of ¥10 billion by one
year. Also, we have temporarily excluded net sales from the plan’s targets as the Group shifts focus to thedevelopment and procurement of more profitable products to create a highly profitable structure that canwithstand current exchange rates and cost increases.
The three key strategies – growth strategy, balance sheet strategy and ESG strategy – remain unchanged.
As part of this review, we will reexamine business opportunities and risks across the Group and leverage
our strengths to deliver sustainable growth, aiming to realize our vision of “creating an unrivalled company
worldwide.”*May 9, 2024 release: Notice of Revisions to Doshisha Group Medium-Term Business Plan FY3/23 –FY3/25 (Japanese only)
https://www.doshisha.co.jp/dcs/wp-content/uploads/2024/05/24-05-09-4.pdf

Consolidated Forecasts for FY3/25
Medium-Term Business Plan –Aiming to Build a ¥10 Billion Earnings Base』
Consolidated(\ million)

FY3/24

FY3/25

1H2H

1H

2H

51,86053,963

105,824

54,10055,900110,000

4,175

3.9%

27,59329,28556,87929,00030,50059,500

2,620

4.6%

22,29722,90745,205

23,10023,70046,800

1,594

3.5%

Others

1,969

1,770

3,739

2,000

1,700

3,700

- 39- 1.1%

Gross profit

14,984

14,90029,884

15,70015,80031,500

1,615

5.4%

SG&A expenses

10,717

11,24021,958

11,250

11,25022,500541

2.5%Operating income

4,266

3,659

7,926

4,450

4,550

9,000

1,073

13.5%

Ordinary income

4,384

4,027

8,412

4,500

4,600

9,100

687

8.2%

Net income

2,931

2,852

5,784

2,950

3,050

6,000

215

3.7%

Net sales
Product Development
Model Business
Wholesale
Model Business

Full year

YoY
Full year

ChangePct. Change

We forecast higher sales in both the Product Development Model Business and the Wholesale Model
Business, as well as higher gross profit, operating income, ordinary income and net income.

FY3/23 – FY3/26 Three Key Strategies>> Growth Strategy【Product Development Business Model:Extending the “Niche No. 1 Strategy” with Niche Marketing】“Niche marketing” targets corners of the market that large companies and other firms ignore. One exampleof this approach is our range of stereo radio cassette players. Sales of radio cassette players havecontracted sharply due to developments in recording media technology, but there is still a market for theseproducts, supported by a group of core fans. We have jointly developed a new type of radio cassette
player with Orion, a Group company with a proven track record in the development of audio equipment.
This was backed by market research that identified nostalgia and yearning for radio cassette players
among users from the technology’s heyday and the need for functional products with appealing designs
among the younger generation. The new products add the latest features such as BluetoothⓇ connectivity
to functions that premium radio cassette players had at the time, including cassette tape playback, heavy
bass functions and microphone mixing. The crowdfunded sales target was quickly exceeded andsubsequent in-store sales have also been strong. As expected, the products received positive feedback
from both middle-aged and younger consumers on social media. The cassette players are a primeexample of how preparatory marketing activities can deliver solid results.

CD radio cassette product website (Japanese only)
https://doshisha-av.com/oretachi/【Wholesale Model Business (Famous Brands):
Discovering and Nurturing Brands Through Total Control of the Value Chain】
In the brand business, we aim to grow sales and profits by controlling the entire value chain, fromdiscovering and nurturing brands to selling products for some brands. Specifically, we are working to 1)“cultivate potential brand fans by designing effective sales areas for physical stores” with an emphasis onraising brand visibility, and 2) “nurture relationships with core fans through official e-commerce sites,” with
an emphasis on driving sales and building the fanbase.
Moreover, we already have a brand business with a proven track record over several decades. The
business’s two strengths are the ability to “control sales channels and selling prices” and “cultivate andexpand sales in Japan,” key areas for building a brand image. Recently, in the case of outdoor brand
STANLEY, we have been creating sales areas that convey the brand’s world view via physical stores while
also directly operating the brand’s official website. As part of efforts to build the brand image, we havesuccessfully deepened relationships with STANLEY users by communicating the brand’s worldview
through interviews with celebrities, limited-edition products and advance sales campaigns.

【Wholesale Business Model (NB Gift Processing):
Original Confectionary Brand】
Leveraging the strengths Doshisha has built up in mid-year and year-end gifts – business relationships
with suppliers across a wide range of categories and specialist human resources – we are taking on thechallenge of developing a new original confectionary brand called OIMO MERCI. Based on keywords suchas “little luxuries” and product characteristics designed to appeal to women, we have run sales events atprominent department stores, leading to increased brand recognition. Going forward, we plan to conductsocial media marketing using brand influencers and expand the business online and in other channels.

Build Profitable Categories in Areas of Expertise + Processing
Original confectionary brand Moving into growth phasewith new stores + social media
Product development
drawing on
Doshisha’s strengths1) Suppliers in a wide range ofcategories2) Specialist human resourcesin product development
3) Product planning, marketingand sales promotion from theconsumer's perspective

Launch in areas wheretarget consumers gather

Step up approach toconsumers

New stores in department storesand kiosks at pop-up events,
based on keywords “little luxuries”
and “treats”

Social media marketing
to raise awarenessLaunched in Daimaru Tokyo,Hankyu Umeda flagship store,other locations

Using influencers to promote
stores and products

Brand concept:“A sweet potato fell inlove with Paris”>> Balance Sheet Strategy【Returning Profits to Shareholders: Increasing the Dividend】
As announced on May 9, 2024, Doshisha celebrates its 50th anniversary in October 2024. To mark theoccasion, we will pay shareholders a commemorative dividend of ¥5 per share. The year-end dividend for
FY3/24 will be ¥40 per share, consisting of an ordinary dividend of ¥35 and a commemorative dividend of¥5. The annual dividend will be ¥75 per share, an increase of ¥5 from the previous fiscal year. For FY3/25,
we plan to pay an interim and year-end dividend of ¥40 each, for an annual dividend of ¥80, an increase of¥5 from the previous fiscal year.

Returning Profits to Shareholders With Dividend Hikes
Earnings per share
Year-end dividend (\)

Interim dividend (\)

(¥)

(¥)

90.0

Payout ratio
60.0%

80.0
80.0

55.0%

75.0

70.0

65.0

60.0
60.0

50.0
50.0

50.0

50.0%
44.3%

55.0

45.5%
45.0%

50.0

43.7%

39.6%

43.6%40.0%

40.9%

40.0

35.0%

32.9%
30.0

30.0%

20.0
29.5%

25.0%

10.00.0

FY 3 /1 8（¥）

FY 3 /1 9

FY 3 /2 0

FY3/18Interim dividend (\)
Year-end dividend (\)
Total
Dividend yield
Payout ratio

FY 3 /2 1

FY3/19FY3/20FY 3 /2 2

FY 3 /2 3

FY 3 /2 4

FY3/21

FY3/22

FY3/23

20.0%

FY 3 /2 5e s t im a t e

FY3/24

FY3/25
estimate

25.0

25.0

25.0

25.030.0

30.035.0

40.0

25.0

25.025.0

30.030.0

35.0

40.040.0

50.0

50.0

50.0

55.0

60.0

65.0

75.0

80.0

2.0%
32.9%

2.9%
43.7%

3.9%
43.6%

2.9%
29.5%

4.0%
40.9%

3.4%
39.6%

3.6%
44.3%

45.5%

>> ESG Strategy (Sustainability Initiatives)
We have established Doshisha’s Sustainability Policy, Sustainability Promotion Framework and Five
Materialities. Guided by these documents, we aim to help realize a sustainable society by implementing
initiatives that solve a range of issues. Also, as shown in the “Key Indicators” row in the table below, ourHuman Capital Strategy sets numerical targets for FY3/25 related to diversity and work style reforms,
which we are now working to achieve. Please visit the corporate website for more details (Japanese only).

Sustainability Initiatives
Helping to create a sustainable society
by sustainably increasing corporate value
Sustainability
PolicySustainability
Promotion
Framework

Guided by our management philosophy and code of conduct – the Company’s Founding Spirit,
Company Motto and Four Positives Spirit – we will engage in business activities that consider theglobal environment and lead to coexistence with society.
We have established a Sustainability Promotion Committee , chaired by Masayuki Nomura,
Doshisha’s President, CEO and COO. The committee is comprised of nominated members in executive
officer roles or higher positions.
The committee is responsible for discussing and deciding on issues related to sustainability, risk andcompliance.
We have identified and are working to address the following five materialities from the perspectives of"impact on society, the environment and the economy," "shareholder expectations" and "theDoshisha way."

Five Materialities

Key Indicators(1) Help people lead richer lives by providing unique and exciting experiences(2) Promote environmentally friendly business activities(3) Coexist with and contribute to society(4) Create a passionate, resilient company and human resources(5) Enhance corporate governance.
Under our human resources strategy, we will work to attain the following FY3/25 targets related todiversity and work style reforms.
● Ratio of women in career track positions: 16.0% or more
● Average overtime hours: 13 hours or less
● Annual paid leave utilization rate: 70% or more
● Male parental leave utilization rate: 50% or more

*Please visit the Sustainability section (Japanese only) on the corporate website for more information
about the ESG Initiatives, Doshisha’s Sustainability Policy, Sustainability Promotion Framework and theFive Materialities, using the link below:
https://www.doshisha.co.jp/lp/sustainability/
By implementing the growth strategy, balance sheet strategy and ESG Strategy, as well as measures to“enhance shareholder value over the medium to long term,” we aim to create a passionate, resilientcompany that has a positive impact on society.
(May 2024)