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DOSHISHA CORPORATIONTSE 1stSection

Summary of Business Results for the Fiscal Year ended March 31, 2012

On May 16, 2012, DOSHISHA CORPORATION (hereinafter “DOSHISHA” or the “Company”)
held its Business Results Meeting for FY3/12. The following is a summary of the meeting.

Summary of FY3/12 Consolidated Business Results
As seen in Table 1, consolidated net sales and income both hit record highs in FY3/12 (or “thisterm”). Net sales of DOSHISHA’s development-type business operations—which features a higher
gross margin rate than its wholesale-type business operations—increased by 10.8% year-on-year,
and thus contributed to profit growth. While the blowback created in the aftermath of special demand
for terrestrial digital TV units led to a Q3 sales decline for the AV Business Unit, record-breaking
sales were posted for this term as products in other categories sold a brisk rate.

 【Table 1】 FY3/12 Consolidated Business Results Summary
FY3/11

Consolidated（\ million）

ActualNet Sales
Product Development Model
Wholesale Model
OthersGross Proft
SG&A Expenses
Operating Income
Ordinary Income
Net Income

93,49449,281
41,991
2,221
23,12915,431
7,698
7,614
4,395

FY3/12

Ratio toNet Sales

100.0%
52.7%
44.9%
2.4%
24.7%
16.5%
8.2%
8.1%
4.7%

Forecast
on Oct. 6
103,000
55,35845,3092,332
25,40016,400
9,000
9,000
5,300

Actual
102,61954,60245,5972,419
25,354
16,487
8,866
8,917
5,001

Ratio toNet Sales

YoY chg

100.0%

9.8%

53.2%

10.8%

44.4%

8.6%

2.4%

8.9%

24.7%

9.6%

16.1%

6.8%

8.6%

15.2%

8.7%

17.1%

4.9%

13.8%

Note: All tables prepared by Trias Corp. with the data disclosed by DOSHISHA CORPORATION.

Development-Type Business Operations
This business performed well as a result of its emphasis on energy-conservation and “heat wave”
products, which grew in demand from widespread concern over the electric power shortage gripping
post-earthquake Japan. In addition to rising sales in such energy-saving products as electric fansand LED lighting units, a major factor in the operation’s success was that the volume production
regime for such new products this term as perspiration wipes and mist fans had been fully primed toThis Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012

Trias Corporation

All rights reserved.

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1-Jun-12

meet special demand generated after the March 11, 2011 disaster. Given a shift in lifestyles driven
by consumer preferences for environmentally friendly goods, products like ice-shaving machines
and electric fans—which were previously relegated to mature or even declining productcategories—have now emerged as growth fields, a trend that is expected to continue over the future.
Similarly, demand for mug bottles, pressure cookers and other home cooking appliances has also
been expanding as a result of this consumer shift to more eco-friendly goods, as well as a trend toeat at home.
Sales of wine have continued to perform well since the previous term.
Wholesale-Type Business Operations
This DOSHISHA operation succeeded by developing a new market—one consisting of Buddhist
ceremonies and product returns, which the Company bolstered its marketing effort—as well as fromrising sales of high-priced and high-discount gifts. Sales of wristwatches and handbags, particularly
those in the lower-end casual brand market, also performed well.
Other Operations
As for net sales by sales channel, sales generated from supermarkets, home centers and discountstores increased by more than 10% on a year-on-year basis. Sales generated from the channel
consisting of shoes/import specialty outlets, 100-yen shops, and web marketing leaped by over 30%
in the same period.
Regarding the special note in the consolidated balance sheet, cash and deposits, bill receivables
and account receivables grew due to an increase in net sales, while inventory declined as a result ofimprovements to order accuracy. Also, fixed debt decreased because DOSHISHA assumed the loan
debt of a subsidiary.

 【Table 2】 Categories Contributing to FY3/12 Sales and Income
LED lighting
Low-priced, high-functionality cosmetics"Designer" home appliances
Apparel(fans, humidifiers, heaters)
ProductSports water bottles, mug bottles Shoes
Development
Pressure cookers
WineModel
Illuminations lightMalt-free "beer" (lower tax bracket)
Beach goods\100 products
Cooling goods
Premier brand (famous brand)
Inport brand （Watches, bags, Jewelry）
Wholesale
GiftsSpecial discounted mid-year and year-end gifts
ModelGifts (National Brand)
Presents, beer gifts, gift returns from funerals

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012

Trias Corporation

All rights reserved.

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Consolidated Forecast for FY3/13 and Priority Initiatives
As seen in Table 4, the Company projects consolidated net sales and income for FY3/13 tosurpassed results posted in FY3/12 as a result of a reinforced product development program andother priority initiatives that are adopted this term.

【Table 3】 FY3/13 Business Forecast

Consolidated（\ million）

FY3/12 (Actual)

Net Sales
Product Development Model
Wholesale Model
OthersGross Profit
SG&A Expenses
Operating Income
Ordinary Income
Net Income

1H
50,94027,42822,3991,112
12,461
8,293
4,167
4,167
2,424

2H
51,67927,17423,1981,307
12,893
8,194
4,699
4,750
2,577

Full Year102,61954,60245,5972,419
25,354
16,487
8,866
8,917
5,001

FY3/13 (Forecast)1H
50,00025,30023,6001,100
12,600
8,200
4,400
4,400
2,600

2H Full Year YoY chg
55,000 105,000
2.3%
28,50053,800-1.5%
25,10048,700
6.8%
1,400
2,500
3.3%
13,70026,3003.7%
8,800
17,000
3.1%
4,900
9,300
4.9%
4,900
9,300
4.3%
2,800
5,400
8.0%

Note: FY3/13 forecasts announced May 8, 2012 【Table 4】 Priority categories in FY3/13
LED lighting
Product
Development "Designer" electric fansModel
Mug bottle series
Pressure cookers
BicyclesBeach goods
Premier brand (famous brand)
Wholesale
Gifts (National Brand)
Note: New categories are in bold.

Low-alcohol liquor, malt-free "beer"
Wine
High-functionality cosmetics
Steel shelf series
Audio&Visual
Inport brands (Watches, handbags, jewelry)Special discounted mid-year and year-end gifts
Presents, beer gifts, gift returns from funerals

Product Development Initiative
1.

DOSHISHA aims to engage in an up-tempo product development cycle that caters to emerging
trends and consumer needs. One of the Company’s strengths is its ability to develop products
unhindered by conventional thinking and established product lineups. However, because
products

developedfrom

unconventional

thinking tend create

variousdepartmental

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012

Trias Corporation

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redundancies, DOSHISHA has consolidated its development-type product development unit inTokyo, thereby enhancing the efficiency of the entire process, including the speed of productplanning and marketing/sales.
2.

While proprietary and private brand products are developed according to sales by business typenot only for blue-chip customers, but also for a variety of other major customers, the number ofcustomers seeking OEM goods and custom orders are on the increase. The Company has
already deployed specialized product units at its premier customers, but plans to upgrade its
product development program by increasing the number of such units.

Marketing/Sales Initiative
1.

Development-Type Operations
DOSHISHA will be selling a special “food pot” that not only keeps food warm but also keeps it
cool in the summer, a product that exploits an extreme niche use for the stainless steel vacuum
thermos market. It also aims to step up sales of home appliances that combine the sales points ofgood design, reasonable prices and energy conservation. Among its highlight products is a“designer” electric fan that boasts superior cooling power, low electrical consumption and low
noise operation, developed in collaboration with Nakashima Propeller Co., Ltd., a manufacturer ofship propellers. The Company will also strive to raise profitability by bolstering sales of LED
lighting units, which turned profitable in this term, and high-functionality cosmetics. As for its LED
lights, DOSHISHA will be leveraging its broad customer and procurement base to sell retail outlet
lighting systems that includes installation services.

2.

Wholesale-Type Operations
The Company aims to expand its sales channel for assorted gift packages, which has become
increasingly popular when sold at major volume discount retailers. It also looks to bolster sales oframen (Chinese noodles) gift packs, a new venture designed to enhance the attraction of vendors
and rejuvenate customer traffic by offering 100 premier ramen brands and devising new ways andplaces to sell them, as well as offering opportunities to sell related ramen goods as an auxiliary
benefit. DOSHISHA will also be experimenting with a novel new approach to sales of its premierbrand business, one that defies existing notions of marketing such products (akin to sellingupmarket watches at a grocery store). Another concept that it will adopt is to offer acomprehensive product service that ranges from planning and development to retail spaceconstruction. In FY3/13, the Company plans to expand its brand business by selling a new lineup
of casual brands in conjunction with furniture and fixtures that are tailored to the retail space.

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012

Trias Corporation

All rights reserved.

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Other Initiatives
DOSHISHA aims to expand its share of retail space by reinforcing ties with major clients andboosting overseas sales of beauty products and “designer” home appliances, both of which have
performed well in FY3/12. It will also strive to hedge risks related to its China exposure by
stepping up production in Thailand, Vietnam and Bangladesh.

Mid-Term Management Plan
Under the Mid-Term Management Plan, the Company aims to achieve net sales of ¥150 billion andoperating income of ¥13 billion in FY3/16, primarily through growth achieved by its existing business
units or by their re-division, as well as developing new product categories. DOSHISHA sees thesetargets as a transit point to its ultimate objective of ¥250 billion in net sales achieved through 50
business units generating ¥5 billion in sales each. In comparison, it is currently generating net salesof ¥103 billion through 21 business units, including two subsidiaries. Of these units, ten achieved
double-digit growth in net sales, while 13 did the same in operating income—leading the Company tobelieve that there exists considerable room for growth in the years ahead.

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012

Trias CorporationAll rights reserved.

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Q&A Session
Q1: Your forecast for FY3/13 seems conservative. Is it due to the fact that DOSHISHA’s
performance in this term was particularly strong?
A1. Yes, we have kept it conservative because we remain unsure as to the extent the post-special
demand from terrestrial digital TV broadcasting will have on TV sales.

Q2. Of the ¥150 billion in net sales stipulated under your Mid-Term Management Plan, whatpercentage of that will come from overseas sales?
A2. We estimate that overseas sales will amount to what a single business unit of ours contributes. The
plan is to have our foreign operations specialize in “designer” home appliances and high function
cosmetics, both of which we believe will sell well abroad. We are looking to start sales in the UnitedStates soon and hope to announce its commencement in the second half of this term.

Q3. In FY3/12, you saw profits rise in the first half, particularly in Q1, on the backs of TV and heatwave product sales. While you say that your forecast for FY3/13 has been conservative, what
are your projections for these two profit drivers?
A3. Order volume for heat wave products is currently surpassing that recorded in FY3/12, and net sales
in fiscal 2013 is projected to top that posted in the previous term. The reverse is true for TV sales,
however. Nevertheless, we do not foresee underperforming sales to trigger a new round of pricereductions, primarily as the national brands have already corrected their inventories. As a result, weproject that our share of TV sales at our major clients to grow despite keeping our forecast conservative.

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012

Trias Corporation

All rights reserved.

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1-Jun-12

 Key Stock Indicators and Financial Data
No. of Shares Issued
No. of Treasury Stock
Market Value (\million)
BPS (\)ROE (%)ROA (%)PER (times）
PCFR(times)
PBR (times)
Share Price (\)
Unit Share (shares)
Average Daily Volume (shares)

Mar. 2012
18,687,818
Mar. 2012
193,067
May 31, 2012
39,693Mar. 2012
2,454.52
Mar. 2012
11.7
Mar. 2012
9.0
FY3/12 fcst.
7.3
Mar. 2012
7.2
Mar. 2012
0.9
May 31, 2012
2,124
May 31, 2012100
May 31, 2012
65,122

Total Assets (\million)
Mar. 2012
Shareholders' Equity (\million)
Mar. 2012
Interest-Bearing Debt (\million)
Mar. 2012
Equity Ratio (%)
Mar. 2012
Ratio of Interest-Bearing Debt (%) Mar. 2012
Free Cash Flows (\million)
Mar. 2012

ROE=Current Net Income÷Averaged Shareholders' Equityof beginning of term and term end
ROA=Current Net Income÷Averaged Total Assets
of beginning of term and term end
PCFR=Maket Value÷(Current Net Income+Depreciation)
Average Daily Volume=Ave. Daily Volume for the last 12 months
Ratio=Interest-Bearing Debts÷Shareholders' Equity
Free Cash Flows=Operating CF+Investment CF

ConsolidatedOperatin Ordinary
Net Sales
Net Income(\million）
gIncome
FY3/0980,898
5,014
5,131
2,558
FY3/1086,629
7,701
7,593
4,293
FY3/11
93,494
7,698
7,614
4,395
FY3/12 102,619
8,866
8,917
5,001
2Q FY3/13 fcst.
50,000
4,400
4,400
2,600
FY3/13 fcst. 105,000
9,300
9,300
5,400
Note: FY3/13 forecast announced on May 8, 2012

EPS (\)
140.94236.54242.20274.91140.58291.97

Dividendper Share
45.00
55.00
55.00
60.0030.00
60.00

 Share Price Charts and RSI（Yen）
3,000

RSI3002,500

2502,000200
Share Price (Close)

1,500

1 Month Moving Average

150

3 Months Moving Average
RSI 14 Days Moving Average (RHS)

1,000

100
70
50500

30031-M
ay-1
130-J
un-1
131-J
ul
-1
131-A
ug
-1
130-S
ep-1
131-O
ct
-1
130-Nov
-1
131-D
ec
-1
131-J
an-1
229-F
eb
-1
231-M
ar-1
230-A
pr-1
231-M
ay-1
20

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 areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altere d without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2012

Trias Corporation

All rights reserved.

58,09545,395
2,714
78.1
6.0
8,226

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