’s here too!

Results Briefing Summary◆ Summary of 1H FY3/22 Consolidated Results
Consolidated(\ million)

2Q FY3/21
ActualNet sales

2Q FY3/22

Composition
ratio

ActualYoY

Composition
ratio

ChangeReference

Pct. Change

5/10/21
forecast

ChangePct. Change

50,189100.0%

49,046100.0%(1,142)-2.3%

49,900

(853)

-1.7%

26,16452.1%

26,171

53.4%

70.0%

26,550

(378)

-1.4%

21,78443.4%

20,76042.3%(1,023)-4.7%

21,600

(839)

-3.9%

Others

2,240

4.5%

2,115

4.3%

(125)

-5.6%

1,75036520.9%

Gross profit

15,501

30.9%

14,568

29.7%

(932)

-6.0%

14,900

(331)

-2.2%

SG&A expenses

10,29820.5%

10,615

21.6%

317

3.1%

10,500115

1.1%

Operating income

5,203

10.4%

3,953

8.1%

(1,250)-24.0%

4,400

(446)

-10.2%

Ordinary income

5,322

10.6%

4,155

8.5%

(1,167)-21.9%

4,450(294)-6.6%

Net income

3,586

7.1%

2,791

5.7%

(794)

-22.2%

2,950(158)-5.4%

Product Development
Model Business
Wholesale
Model Business

For the first half of FY3/22, we forecast a year-on-year decline in sales and profits due to a pullback insales of face masks and antibacterial products from FY3/21, when we succeeded in rapidly securing
supplies in 1Q. While sales and profits declined in 1Q this year, the contraction was not as steep as weexpected, reflecting progress with new product development by the Product Development Model Businessand signs of recovering demand for famous brands. However, there were delays in product manufacturing
and deliveries in 2Q due to the global chip shortage and planned power cuts in China. Profit margins also
deteriorated amid surging raw material prices. As a result of these and other factors, sales and profits in
1H FY3/22 declined year on year.

◆ Summary of 1H FY3/22 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 prepared by Doshisha using merchandise sourced from leading domestic
manufacturers.

Product Development
Model Business

Wholesale
Model Business

60.0* Fig u r e s in (Fig u r e s in [Famousbrands

NB
processing[+3.9%]

49.0Others) a r e c o m p o sitio n r a tio] a re ye a r o n ye a r ch a n g e

50.1

48.3

26.1

40.026.1

23.4(53.4%)[+0.0%](52.1%)[+11.4%](48.6%)

6.3

8.6

20.0

23.0(47.6%)

14.3(29.7%)

7.2(12.6%)[-26.8%](17.9%)[-2.3%](14.7%)[+13.8%]

21.7

15.4

20.7(43.4%)[-5.3%](30.8%)[+7.7%](42.3%)[-4.7%]

13.5(27.6%)[-12.3%]0.0(¥ billion)

2Q FY3/20

2Q FY3/21

2Q FY3/22*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 >・ Food products> An increase in time spent at home and rising demand related to camping and BBQs led to higher
sales of imported confectionary, as well as marshmallows and popcorn.
・ Kitchen accessories> More opportunities for home cooking drove sales growth across the Evercook range of frying
pans, leading to cumulative sales of 4.5 million units.
> Sales of Sutto smart frying pans, which can be stored efficiently in tight kitchen spaces, alsoincreased.
・ Summer products> Stay-at-home demand during states of emergency supported higher sales of Doshisha’s
extensive range of summer products, including snow cone makers, nagashi-somen (chilledflowing noodles), fans and circulators.
・ Ventilation demand> Sales declined year on year as demand for air purifiers and sterilizers/deodorizers stabilized.
< Wholesale Model Business – Highlights >・ Famous brands> Sales gradually recovered from the previous fiscal year, when many customer stores had toclose temporarily.
・ Traditional mid-year and year-end gifts (NB processing)> Despite a continued impact from the pandemic, sales were strong, centered on delivered gifts.
> T.D. Early, an original Doshisha confectionary brand, was launched in 1H. In November 2021 thebrand opened a permanent store in the Daimaru Tokyo department store, followed by pop-up
sales events in JR Tokyo Station, JR Shin-Osaka Station and other department stores. Sales arecurrently expanding.

・ Toys and leisure-related products (NB processing)> Sales of home-use pools and other outdoor products were strong due to the growing popularity offamily-focused leisure activities, which was spurred by the need to avoid crowded places.
・ Hygiene products (NB processing)> After strong sales in the previous fiscal year, sales of face masks and antibacterial goods
contracted sharply in 1H FY3/22 as supply chains were put in place across the market.

◆ 1H FY3/22 Consolidated Results by Sales Channel
Sales increased 15% year on year in the single-price retailer channel due to stepped-up productdevelopment, including the launch of new food products. Sales grew 14% in the online channel, reflecting
efforts to build closer ties with online retail platforms and a steep rise in sales via proprietary e-commercesites. Sales also increased in the discount store channel and in the specialist watch and clothing store
channel, which is seeing a recovery in demand for famous brand products. However, sales contracted year
on year in the hardware store channel and in the large electronics retailer channel as telework-related
demand dropped off.

◆ Consolidated Forecasts for FY3/22
Consolidated(\ million)

FY3/21
1H

2H50,18951,067

26,164

Full year
101,257

49,046

27,51553,67921,784

21,491Others2,240

Gross profit

Pct.
ChangeChange54,353

103,400

2,142

2.1%

26,171

29,22855,400

1,720

3.2%

43,275

20,76023,43944,200

924

2.1%

2,061

4,301

2,115

1,684

3,800

(501)

-11.7%

15,501

14,95830,46014,56815,73130,300

(160)

-0.5%

SG&A expenses

10,298

10,63920,937

10,615

10,68421,300362

1.7%Operating income

5,203

4,319

9,522

3,953

5,046

9,000(522)-5.5%

Ordinary income

5,322

4,412

9,734

4,155

4,944

9,100

(634)-6.5%

Net income

3,586

3,001

6,588

2,791

3,308

6,100(488)-7.4%

Product Development
Model Business
Wholesale
Model Business

2HYoY
Full year

Net sales

1HFY3/22

Initial full-year guidance is unchanged. We forecast higher sales year on year, driven by an increase inproduct development sales. Our gross margin forecast is 29.3%, down 0.8 percentage points year on year,
reflecting the net impact of surging raw material prices, a recovery in famous brand sales and limited
discounting and other inventory disposal measures in the previous fiscal year. In selling, general andadministrative expenses, we anticipate higher sales promotion costs and travel costs, which were kept low
in the previous fiscal year, in light of current business conditions at retailers.

◆ An Evolving Business Strategy
Our vision for Doshisha is to “Create an unrivalled company worldwide.” To realize this vision, we are
implementing a business expansion strategy using two approaches: “flexibly reconfigure the businessportfolio” and “develop products that are unique and exciting.”

Flexibly reconfigure the business portfolio – case study< NB gift processing – fully outsourced business >Fully outsourced business → Solutions based on
optimized proposals
Stores /retail areas

Product planning

Order processing /product shipment< Retail store workload / challenges >• Product planning andprocurement issues• Supplier management
issues• Lack of sales areaideas
• Inventory management
issues• Significant ordermanagement workload(as well as personnel
and cost factors)

Partial optimization
leads to losses< What Doshisha can offer: Strengths in product development/ planning,
sales area expertise for many sectors >• Minimizedinventory risk
• Optimized
product lineup• Sales area design• Comprehensive
support, including forretail stores• Business efficiencies• Tighter control oflogistics costs

Full optimization!

Japan’s traditional mid-year and year-end gift market is gradually shrinking due to changing customs, suchas adjustments in corporate gift-giving demand. These changes have the potential to undermine
profitability at stores and retailers that handle gift packs themselves due to a rising cost burden in each partof the value chain, from product planning and inventory management to sales area development, sales
promotion planning and gift ordering processes. To address these challenges, we offer complete
optimization packages utilizing our track record and expertise in the gift business across all retail channels.
We help clients plan products tailored to specific stores and regions, provide full support covering allprocesses through to final delivery, and ensure efficient outsourced order processing operations, resulting
in full optimization that leads to lower costs for retail stores. These solution proposals targeting clientissues are a win-win strategy for customers and for Doshisha, helping us increase market share in themid-year and year-end gift market.

Develop products that are unique and exciting – case study< CIRKILATOR and Foldable Washing Machine >Just what I needed! Home appliances for niche unmet needs
User needs

・・・・
Clean and safe circulatorsthat can be used all year round

Product development
concept

Of course!

Device to quickly pre-wash face masks
separately from normal laundry

Products for niche unmet customer needs

・・・・・ to take out and put away
Quick・・・・ to use→ Easy

No tools needed for disassembly→ Easy to clean

・・・・
CIRKILATOR

Foldable Washing Machine
Kitchen cloth

Kids clothes

Foldable, so takes
up little space

Foldable foreasy storage

WeighsroughlyPet clothes

Washable face masks

2 kgStore flat on shelvesStore sideways in tight spaces*Items should be placed in wash nets
*Supplied belt required for sideways storage

As lifestyles become more diverse, our focus and mission in manufacturing is to provide unique andexciting products to consumers. That’s why we emphasize three areas in manufacturing – what consumers
want, what’s “new” and what’s “interesting” – aiming to create products that eliminate inconvenience anddiscomfort from everyday life by satisfying unmet needs. One example is our new circulator, which
improves ventilation and thermal efficiency. With previous products, consumers told us they wanted tokeep their circulators clean, but they had trouble cleaning all the hard-to-reach corners. To address thatproblem, we developed the industry’s first washable circulator, the Doshisha CIRKILATOR. No special
tools are needed for disassembly and all the parts are washable, solving users’ concerns about cleaning.
> Product profile: CIRKILATOR
https://e-doshisha.com/lineup/circulator_fcw-140d.html (Japanese only)
Another example of our approach is the Foldable Washing Machine. The pandemic has led to a new trendof pre-washing face masks and clothing before putting them in the main wash. Washing only thenecessary amount of laundry items also saves water, helping to protect the environment.
> Product profile: Foldable Washing Machinehttps://e-doshisha.com/lineup/washing_machine_WMW-021.html (Japanese only)
We see these kinds of emerging consumer behaviors and trends in everyday life as niche target markets,
helping us identify new ideas for products. Tapping into these trends, we are developing new products
backed by appealing narratives that make consumers realize, “yes, this was just what I needed!” In short,conventional marketing activities are unlikely to uncover the potential needs of consumers. We believe it isimportant to foster curiosity, awareness and independent thinking, and then take a shot at developing newproducts if enough people are interested in the product idea. With this approach, we hope to get closer to
how consumers think to continue delivering “unique and exciting” moments for everyday life. Backed bythese initiatives, we will continue to promote our corporate message, “Doshisha’s here too!”◆ FY3/22 Dividend Policy
Our goal is to continue paying stable dividends to shareholders. For FY3/22, we plan to pay a full-year
dividend of ¥60.00 per share, based on an interim dividend of ¥30.00, which was raised at the end of theprevious fiscal year. In addition to dividends, we will conduct a share buyback with approved limits of 1
million shares and ¥1.9 billion (see our press release on November 19, 2021) (Japanese only).