’s here too!

Results Briefing Summary
Sales and profits both up year on year, profits hit record◆ Summary of FY3/21 Consolidated Results
Consolidated(\ million)

FY3/20
Actual

FY3/21

Composition
ratio

ActualYoY

Composition
ratio

ChangeVs. forecast

Pct. Change

1/29/21
forecast

ChangePct. Change

96,238100.0%

101,257

100.0%

5,019

5.2%

101,000

257

0.3%

47,07848.9%

53,679

53.0%

6,601

14.0%

53,800

- 120

-0.2%

45,17546.9%

43,27542.7%- 1,899-4.2%

42,900375

0.9%

Others

3,984

4.1%

4,301

4.2%

317

8.0%

4,300

10.0%

Gross profit

26,70627.8%

30,460

30.1%

3,753

14.1%

30,200260

0.9%

SG&A expenses

20,711

21.5%

20,937

20.7%

226

1.1%

20,900370.2%

Operating income

5,995

6.2%

9,522

9.4%

3,527

58.8%

9,300

222

2.4%

Ordinary income

6,260

6.5%

9,734

9.6%

3,474

55.5%

9,500

234

2.5%

Net income

4,211

4.4%

6,588

6.5%

2,376

56.4%

6,400

188

2.9%

Net sales
Product Development
Model Business
Wholesale
Model Business*Due to a change in internal management approach from 1Q FY3/21, some operations previously classified under the Product Development
Model Business have been transferred to the Wholesale Model Business; segment figures for FY3/20 are shown based on the newapproach.

Despite the COVID-19 pandemic, Doshisha responded rapidly to demand in the first half of the fiscal year
by leveraging its extensive procurement capabilities – one of its key strengths – to source face masks,
antibacterial products and other products in the Wholesale Model Business. The Product Development
Model Business, which has been strengthened in recent years, also registered solid sales in the homeappliance, storage and homewares categories during FY3/21.
The gross margin improved +2.3ppt year on year to 30.1%, reflecting efforts to strengthen the ProductDevelopment Model Business, which lifted its share of consolidated sales, as well as tighter control ofsales losses due to inventory right-sizing. The selling, general and administrative expenses ratio improved+0.8ppt year on year to 20.7%. The main factors were a year-on-year decline in the logistics cost ratio due
to a rise in capacity utilization at the Kisarazu Logistics Center, which was opened in 2017, and wider useof delivery consolidation and distribution using optimal locations, as well as greater efficiency and tighter
control of costs related to sales activities, such as travel expenses, advertising expenses and sales
promotion expenses. As a result, operating income, ordinary income and net income all rose year on year
to reach record highs.
Doshisha faced an unprecedented operating environment during FY3/21, with many retailers asked toclose their stores and take other steps during several states of emergency. In response, we continued tobuild a sustainable business framework supported by solid finances, aiming to realize our corporate
philosophy of creating an unshakeable corporate structure. We also leveraged the Group’s ability to adapt
to change, using the manufacturer capabilities of our product development model and the trading company
capabilities of our wholesale model to continue optimizing the business portfolio.

◆ Summary of FY3/21 Consolidated Results by Business Segment
Our operations are largely divided into two business segments: the Product Development Model Businessand the Wholesale Model Business. The Product Development Model Business plans, manufactures andsells 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 in the Wholesale
Model Business includes famous brand watches, bags and other items, and traditional mid-year andyear-end assorted gift packs arranged by Doshisha using merchandise sourced from leading domestic
manufacturers.

Product development, national brand (NB) processing
offsets drop in sales of famous brands
Product Development
Model Business

Wholesale
Model BusinessFamousbrands

NBprocessing

Others120* Figures in ( ) are composition ratio
Figures in [ ] are year on year change

98.6

100

80

96.2

[-2.5%]

101.2 [+5.2%]

53.6

47.0

50.1

(48.9%)(53.0%)[-6.1%][+14.0%](50.8%)
60

17.1

19.3

40

(19.6%)

45.4
20(46.1%)

14.4(14.3%)[-15.7%](17.8%)[-11.4%]

45.1
26.1

28.0

43.2

(46.9%)(29.1%)(42.7%)(28.5%)(26.5%)[-0.7%][+7.3%][-4.2%][+2.8%]

28.80(¥ billion)

2019/32020/32021/3*Due to a change in internal management approach from 1Q FY3/21, some operations previously classified under the Product Development
Model Business have been transferred to the Wholesale Model Business; segment figures for FY3/20 are shown based on the newapproach.

< Product Development Model Business – Highlights >Sales of products increased in the following four areas:
・ New products based on unique ideas – Firm demand for Cat Tongue tumblers for people with sensitive
tongues (tumblers that rapidly cool very hot beverages and keep them at drinkable temperatures), andsmart frying pans marketed under the Sutto brand.
・ Products to prevent infection – Strong growth throughout FY3/21 for fans, circulators, humidifiers, airpurifiers and sterilizers/deodorizers.
・ Stay-at-home demand – Hot plates and the Evercook range of non-stick frying pans were popular withconsumers.
・ Remote working – Firm growth in demand for desks and chairs and the Luminous Club range of steel
storage racks.

< Wholesale Model Business – Highlights >・ Famous brands – Steep drop in sales of watches and bags.
・ Traditional mid-year and year-end gifts (NB processing) – Sales declined due to a contraction in retailareas, but sales of home-use gift packs and home-delivery traditional New Year’s food increased.
・ Health and hygiene (NB processing) – Strong growth for face masks, antibacterial spray, plastic gloves
for hygiene applications and other products, backed by successful procurement activities.

◆ FY3/21 Consolidated Results by Sales Channel
Sales increased 12% year on year in the hardware store channel, 6% in the discount store retailer channel
and 13% in the single-price retailer channel, supported by telework and stay-at-home demand, as well as
higher demand for hygiene products. Sales also rose 8.0% in the online channel, reflecting efforts to build
closer ties with online retail platforms and a steep rise in sales via proprietary e-commerce sites. However,sales declined year on year in the large electronics retailer channel and the specialist watch and clothing
store channel amid weaker sales of famous brands.

◆ Consolidated Forecasts for FY3/22
FY3/21

Consolidated(\ million)

5 0 ,1 8 9

5 1 ,0 6 7

2 6 ,1 6 4Full year

YoY

2H

Full year

1 0 1 ,2 5 7

4 9 ,9 0 0

5 3 ,5 0 0

1 0 3 ,4 0 0

2 ,1 4 2

2 .1 %

2 7 ,5 1 5

5 3 ,6 7 9

2 6 ,5 5 0

2 8 ,8 5 0

5 5 ,4 0 0

1 ,7 2 0

3 .2 %

2 1 ,7 8 4

2 1 ,4 9 1

4 3 ,2 7 5

2 1 ,6 0 0

2 2 ,6 0 0

4 4 ,2 0 0924

2 .1 %

Others2 ,2 4 0

2 ,0 6 1

4 ,3 0 1

1 ,7 5 0

2 ,0 5 0

3 ,8 0 0- 501-1 1 .7 %Gross profit

1 5 ,5 0 1

1 4 ,9 5 8

3 0 ,4 6 0

1 4 ,9 0 0

1 5 ,4 0 0

3 0 ,3 0 0- 16 0-0 .5 %

SG&A expenses

1 0 ,2 9 8

1 0 ,6 3 9

2 0 ,9 3 7

1 0 ,5 0 0

1 0 ,8 0 0

2 1 ,3 0 0362

1 .7 %

Operating income

5 ,2 0 3

4 ,3 1 9

9 ,5 2 2

4 ,4 0 0

4 ,6 0 0

9 ,0 0 0- 522-5 .5 %

Ordinary income

5 ,3 2 2

4 ,4 1 2

9 ,7 3 44 ,4 5 0

4 ,6 5 0

9 ,1 0 0- 634-6 .5 %Net income

3 ,5 8 63 ,0 0 1

6 ,5 8 8

2 ,9 5 0

3 ,1 5 0

6 ,1 0 0- 488-7 .4 %

Product Development
Model Business
Wholesale
Model Business

2H

FY3/22
1HNet sales

1HChange

Pct. Change

Excluding special demand for hygiene products in FY3/21, we still forecast higher sales in the ProductDevelopment Model Business due to increased competitiveness. Due to only modest discounting losses in
the previous fiscal year, we assume a small decline in gross profit year on year, although support is likely
to come from a recovery in sales of famous brands. Taking into account conditions at retailers, we arebudgeting for an increase in sales promotion expenses, travel expenses and other operating expenses.
Based on the above, we forecast a decline in operating income, ordinary income and net income
compared with the previous fiscal year.

◆ Our New Growth Strategy – The Doshisha WAY
Doshisha WAY Growth Scenario
Our newgrowth strategy

D e ve l o p p r o d u c t sth a t a reu n iq u e a n d e xc itin g

Le a d e rs h i p t e a mto a c c e le ra teb u sin e ss g ro w thFounding spirit
Management
philosophy andvalues

We will strive to create a company
that contributes to society,backed by a group of like-minded people
that never lose their passion for what they do.

Our Four Positives Spirit (Values)
Positive for sellers, positive for buyers,
positive for the world,
positive for workers

Business model

Manufacturer capabilities x trading company capabilities x comprehensive retail support→ Create richer more comfortable lives with new ideas and themes in product planning

Strengths→ Risk management and cash flow (profit-focused) management→ Business portfolio anchored by two business models→ 4,800 retailers, 2,100 suppliers→ Supplier of numerous products in a wide range of categories, not only clothing, foodand homewares

VisionCreate an unrivalled company worldwide

Contribute tosociety

Create social value1

We have developed the Doshisha WAY growth scenario to realize our vision of creating an
unrivalled company worldwide. Under the scenario, we will leverage our new leadership team toaccelerate business growth and reinforce ｄ.

< Leadership to Accelerate Business Growth >Doshisha’s President Masayuki Nomura was also appointed as CEO in April 2021. Under hisleadership, we plan to accelerate growth by implementing the following three strategies:
1. Flexibly reconfigure the business portfolio
Optimize each business by expeditiously overhauling organizations and product categories, focusing
on business viability, business models and optimal personnel deployment.
2. Utilize external resources → M&A and business alliances
Step up efforts to identify external partners in order to create new businesses and increase thecompetitiveness of existing businesses by acquiring additional capabilities that lift barriers to entry
and by reducing the time needed to optimize supply chains.
3. Reinforce specialist capabilities → hire mid-career specialists and strengthen IT systemdevelopment
Automate and improve the efficiency of back-office operations to support marketing activities< Develop products that are unique and exciting >Doshisha puts emphasis on developing products that are unique and exciting by asking three key
questions when creating new product concepts and ideas: what do consumers want, what is “new”
and what is “interesting”? Examples of this approach are our Cat Tongue tumblers and Sutto frying
pans, but we plan to further strengthen our development capabilities to create other standout
products.

C a t To n g u e tu m b le rs

Su tto f ryin g p a n s.

ExamplesRapidly cool down very hot beverages
and keep them at a drinkable temperature
for people with sensitive tongues

Product development
concept

Use limited space effectively!
Easy-to-store frying pans

Identify niche scenes in everyday life
→ Make products that consumers really needDoshisha’s ethos

Develop everyday products that are unique and exciting

Message toconsumers

Doshisha’s here too!

Cat Tongue tumblers
The growing popularity of convenience store coffee has made it easier to get freshly made coffee, but
we conducted a survey to test our theory that some people do not drink it because the serving
temperature is too high. We started developing our tumblers after roughly 50% of respondents said
convenience store coffee was too hot. The concept was to create a tumbler that rapidly cooled down
very hot beverages and kept them at the ideal temperature for drinking. The tumblers proved to be a
hit with consumers thanks to interest on social media and in other channels.
Sutto frying pans
Our eye-catching Sutto frying pans have been developed to help consumers use kitchen space more
effectively. There are other square-shaped frying pans on the market, but our product’s unique design
for storage in tight spaces attracted attention, helping to drive sales.

◆ Contributing to Society< Our Business Models – Embodying the Four Positives – Feed Through to ESG
Management >Guided by the values of our Four Positives Spirit – positive for sellers, positive for buyers, positive forthe world, positive for workers – which is part of our Code of Conduct, we aim to be a company that
contributes to the long-term sustainability of society by conducting ESG management in the following
areas:(Environment: E)
1. We are efficiently matching supply and demand across numerous industries by utilizing thebusiness resources of our 2,100 suppliers and 4,800 retailers. In order to better link procurement
and sales plans, we have set an inventory turnover ratio KPI of 20x, aiming to create an inventory
management system that reduces environmental impact by preventing inventory buildup and losses.
(Society: S)
1. By improving the efficiency of business processes, we are working to reduce overtime andincrease the ratio of employees using their paid leave allocations, without any loss of quality in ourbusiness operations. Our goal is to improve the work-life balance of employees, as well as theirfamilies.
2. We provide support to employees to help them acquire official skills certifications that are directly
related to their jobs. Our goal is to build a framework that deepens the specialist skills of each
employee and helps them accumulate knowledge in diverse fields, spurring motivation and giving
them the capabilities they need to meet the wide-ranging demands of our customers.
(Governance: G)
1. Board of Directors with independent oversight→ Three outside directors on the eight-person Board of Directors, two outside members on thefour-person Audit & Supervisory Board
2. Upgrade the internal control system in accordance with the Basic Policy for Building an InternalControl System→ Recognizing the importance of compliance, we are focusing on upgrading the Group’s
internal control capabilities, such as internal audits, the internal whistle-blower system, theCrisis Management Committee and the Compliance Promotion Committee.

◆ FY3/22 Dividend Policy
Based on our policy of paying a consistent and stable dividend, we plan to pay a full-year FY3/22
dividend of ¥60 per share, including our forecast for an interim dividend of ¥30, which was raised at
the end of the previous fiscal year. In addition to paying a consistent and stable dividend, we will focus
on increasing the share price over the medium and long term, aiming to support investors by meeting
their expectations through our management philosophy, business models and longer-term growth.
(Tokyo, May 2021)