[Translation]

November 9, 2023
To whom it may concern:
Company name:

Wacoal Holdings Corp.

Representative name: Masaaki Yajima,
Representative Director, President andCEO(Code No. 3591 TSE Prime Market)
Contact:

Katsuya Hirooka,
Corporate Officer,
Head of Corporate Planning Dept.
(Tel: +81-75-682-1010)

Announcement Regarding Variances between the Forecast of Consolidated Business Results and Actual
Consolidated Business Results for the Six-Month Period ended September 30, 2023, Revisions to theForecast of Consolidated Business Results, Implementation of Structural Reforms at Our Consolidated
Subsidiary, Recognition of Impairment Charges due to Withdrawal and Liquidation of Our U.S.
Consolidated Subsidiary’s Business, and Reduction in Executive Remuneration (IFRS)We hereby announce the variances between the forecast of consolidated business results for the sixmonth period ended September 30, 2023 (April 1, 2023 – September 30, 2023), which we announced on
May 12, 2023, and the actual consolidated business results which we announced today, and also announce
that we have revised the forecast of our consolidated business results for the fiscal year ending March 31,2024 (April 1, 2023 – March 31, 2024), as follows.
Details
1. Six-Month Period ended September 30, 2023
(1) Variances between Forecast and Actual Consolidated Business Results for the Six-Month Period Ended
September 30, 2023 (April 1, 2023 – September 30, 2023) (International Finance Reporting Standards)

Revenue

Business
ProfitOperatingProfit

Net Profit
Profit Before Attributable
Income Taxes to Ownersof Parent

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Previous Forecast (A)103,000

4,500

4,400

5,500

3,900

67.23

Actual Results (B)95,1303,816(3,384)(2,739)(4,404)(76.09)Variance (B-A)
Variance as
Percentage (%)(Reference)
Results for the SixMonth Period ended
September 30, 2022

(7,870)(684)(7,784)(8,239)(8,304)-(7.6)(15.2)----

97,506

4,344

4,001

5,881

4,218

69.19

Millions of Yen

BasicEarnings
per ShareYen

(2) Reason for Variances
The business environment surrounding our group in Japan experienced sluggish sales of ourmedium-priced products as our customers became more budget-conscious in the face of the rising inflation.
In overseas, our sales remained weak across major regions due to the impact of downward pressure on
consumption in an unstable economic environment. In addition, the suspension of shipments at Wacoal
Europe Ltd. due to a system failure that occurred in mid-September also contributed to the decrease in sales.
Consolidated business profit decreased from our previous forecast due to the impact of decreased revenue
and a significant rise in raw material costs. We recorded a consolidated operating loss due to the decreasein business profit and the recording of impairment charge of 7.43 billion yen related to Wacoal International
Corp. (U.S.) in connection with the business withdrawal and liquidation of Intimates Online, Inc. (“IntimatesOnline”). For details on the business withdrawal and liquidation of Intimates Online, please see section “4.
Announcement Regarding Withdrawal from Business by Our U.S. Consolidated Subsidiary” herein.
2. Fiscal Year ending March 31, 2024 (April 1, 2023 – March 31, 2024)(1) Revised Forecast of Consolidated Business Results for the Fiscal Year ending March 31, 2024
(April 1, 2023 – March 31, 2024) (International Finance Reporting Standards)
Net Profit
Profit Before Attributable
Income Taxes to Ownersof Parent

Revenue

Business
ProfitOperating
ProfitMillions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

BasicEarnings
per Share
Yen

Previous Forecast (A)205,000

6,000

6,000

7,000

4,800

82.74

Revised Forecast (B)196,000

1,700(12,000)(11,200)(10,800)(186.60)

Variance (B-A)
Variance as
Percentage (%)(Reference) Results
for the Previous Fiscal
Year ended March 31,2023(9,000)(4,300)(18,000)(18,200)(15,600)-(4.4)(71.7)----

188,592

4,102(3,490)(699)(1,643)(27.44)(2) Reason for Revisions
In the current business environment, as has been the case during the six-month period ended
September 30, 2023, we anticipate the business environment in Japan and China to remain challenging, andexpect our revenue and business profit to fall significant short of our previous forecast.
In addition, we will undertake structural reforms to improve profitability for sustainable growth of
our consolidated subsidiary, Wacoal Corp. In connection with the implementation of such structural reforms,
we expect to record restructuring costs of approximately 6.0 billion yen during the fiscal year ending March31, 2024. For details on the structural reforms, please see section “3. Announcement Regarding Structural
Reforms at Our Consolidated Subsidiary” herein.

3. Announcement Regarding Structural Reforms at Our Consolidated Subsidiary
Our board of directors resolved at its meeting held on November 9, 2023 to implement structuralreforms at Wacoal Corp., our consolidated subsidiary, including the “withdrawal/integration of unprofitablebrands”, “withdrawal of underperforming stores”, “disposal of inventory”, and “solicitation for voluntary
retirement” in order to improve profitability for sustainable growth as a company.
The key items of the structural reforms are as follows.
Details(1) Background for Structural Reforms
Under our new three-year medium-term management plan, which started from April 2022, we havebeen working to reform our business structure under the slogan of “transform ourselves into a resilient
corporate structure”. In this context, we implemented the Flexible Retirement Program at Wacoal Corp.
during the previous fiscal year and have been working to quickly optimize the number and composition ofits workforce, but the business environment surrounding Wacoal Corp. continues to be challenging due tothe depreciation of the Japanese yen, rising energy prices and other factors.
Under such circumstances, in order to ensure the achievement of goals under “VISION 2030”, wewill improve asset efficiency and profitability by implementing the structural reforms. We will also work toimprove the value of products and services that support our customers’ “beauty, comfort and health”, whichis the business domain of Wacoal Corp., and to secure resources for investment in the use of digitaltechnology.
(2) Outline of Key Structural Reforms(i) Withdrawal of Unprofitable Brands and Integration of Brands
In 2024, we will rebrand Wacoal as our product brand, aiming to make it a brand loved by ourcustomers even more. Including and in addition to the rebranding, we will streamline our marketing
activities and new product development process by consolidating our 26 product lines, which
accounts for 38% of the 68 product lines that make up our 9 core product brands.
In addition, we will continue to monitor the profitability of individual brands and regularly
implement periodic improvements in profitability on a brand-by-brand basis, including theidentification of plans for improving profitability as a brand and the need for additional
consolidation and elimination of brands.
(ii) Withdrawal of Underperforming Stores
We will reevaluate the criteria for store withdrawal in light of the business environment ofWacoal Corp. and consider sequential withdrawal or closure of 22 directly-managed stores (14% of
total 154 stores) and 10 stores in department stores (5% of total 211 stores), which areunderperforming, in the future. With respect to the remaining stores, including business partner
stores such as those in department stores, we will also consider measures, including withdrawal, forstores which do not meet relevant criteria during the current fiscal year, in order to improve
management efficiency. In addition, with respect to those stores which meet relevant criteria, wewill continue our efforts to improve the profitability of stores by optimizing the product mix andpersonnel allocation in the storefronts, and we will continue to monitor the profitability of individualstores, similar to monitoring of the profitability of individual brands, and make decisions on
withdrawal on an ongoing basis.
(iii) Disposal of Inventory
Inventory that is determined to be unsustainable at our group’s stores due to reasons such as
withdrawal and integration of unprofitable brands and withdrawal of underperforming stores
mentioned above will be disposed of in an appropriate manner in order to improve asset efficiency
and profitability.

(iv) Solicitation for Voluntary Retirement
The business environment is more challenging than our expectation, not only due to the pressure
from the external environment to raise costs, but also because the fixed cost ratio remains high dueto the slow recovery of sales that declined as a result of the impact of COVID-19. Under suchcircumstances, in order make continuous investments in growth businesses and human capital tosupport such businesses to achieve the goals of “VISION 2030”, Wacoal Corp. urgently needs tobuild a workforce and organizational structure with higher value provided to customers and tofurther strengthen its profit structure accordingly. Thus, Wacoal Corp. is soliciting voluntary
retirement as part of our efforts to promote further structural reforms. For those who apply for thevoluntary retirement, we will provide outplacement support through an outplacement firm, andcareer development opportunities that will enable them to continue to demonstrate their abilities innew fields.
A. Offer Period:
February 12, 2024 – February 22, 2024 (scheduled)
B. Expected Acceptance Number: Approximately 150 employees
C. Date of Retirement:
April 30, 2024 (scheduled)(3) Outlook
We expect to incur a series of expenses of approximately 6.0 billion yen during the fiscal year ending
March 31, 2024 in connection with the structural reforms, including the disposal of inventory and thesolicitation of voluntary retirement.

4. Announcement Regarding Withdrawal from Business by Our U.S. Consolidated Subsidiary
Our board of directors resolved at its meeting held on November 9, 2023 to withdraw from the“LIVELY” brand business (the “Business”) of Intimates Online, Inc. (“Intimates Online”), a subsidiary ofWacoal International Corp. (headquartered in New Jersey, U.S.A.), our U.S. consolidated subsidiary, and toliquidate Intimates Online as follows.
(1) Reason for Withdrawal from Business
Since the acquisition in July 2019, we have developed the Business by using our own e-commercechannel as the main sales channel and utilizing new digital media, mainly social media, as a communication
tool with its customers. However, due to the entry of competitors into the digital market and restrictions on
targeted advertising as a result of increasing restrictions on the use of personal information, sales have fallen
short of our plans, and there is no prospect of achieving profitability at this point. Under these circumstances,
we have considered various possibilities for future business development, but have determined that it will
be difficult to improve the performance of the Business in the future, and have resolved to withdraw fromthe Business.
(2) Outline of Intimates Online(1) Trade Name:

Intimates Online, Inc.

(2) Location:
Name and Titles of(3)
Representative:(4) Business Description:

136 Madison Avenue New York NY 10016 USA(5) Capital Amount:

USD 433(6) Date of Incorporation:

May 1, 2015

(7) Date of Acquisition:

July 30, 2019(8) Shareholder:

Wacoal International Corp. (Shareholding Ratio: 100%)

Kristin DiCunzolo
Design and sales of women’s innerwear(9) Operating Results and Financial Condition for Past Three Years(For each cell, upper figures in thousands of U.S. dollars and lower figures in millions of yen.) ※1
Figures before consolidation adjustments
Fiscal Year Ended
March 2021
March 2022
March 2023
Net Assets
Total Assets
Revenue
Operating Income
Net Income(2,967)(17,237)(43,404)(430)(2,499)(6,294)28,59528,072

11,170

4,146

4,070

1,620

34,38839,32129,806

4,986

5,702

4,322

(9,442)(11,737)(10,973)(1,369)(1,702)(1,591)(9,666)(11,740)(11,433)(1,402)(1,702)(1,658)※1 For convenience, conversion into Japanese yen has been made at the exchange rate of 145.00 yen
to the U.S. dollar.
(3) Schedule
We plan to proceed with the necessary procedures in accordance with the applicable laws andregulations of the United States and to complete liquidation of Intimates Online by March 31, 2025.

(4) Recognition of Loss
As a result of this withdrawal from the Business, we have recorded a loss of approximately 7.43
billion yen in the consolidated financial statements for the current consolidated cumulative second quarter,including impairment charge on goodwill and loss on valuation of inventories. For the consolidated fiscal
year ending March 31, 2024, we expect to record a loss of approximately 7.3 billion yen due to the effect of
exchange rate. However, such amount is a current estimate and is subject to change due to the effect of
exchange rate and other factors.
5. Announcement Regarding Reduction in Executive Remuneration
We hereby announce that our board of directors resolved at its meeting held on November 9, 2023
to reduce the amount of remuneration of our directors as follows. We take seriously the consequences of thedownward revision of the forecast of the consolidated business results for the fiscal year ending March 31,
2024, the implantation of the structural reforms at our consolidated subsidiary, and the recording ofimpairment charges due to the liquidation of a subsidiary of our U.S. consolidated subsidiary following thebusiness withdrawal.
This resolution was made after consultation with and report from the Remuneration of Directors
Advisory Committee, the majority of which is composed of Independent External Directors.
(1) Details of Reduction Amount in Executive Remuneration
Directors of Wacoal Holdings Corp.:(excluding outside directors)

20% reduction in the basic remuneration amount

Directors of Wacoal Corp.:(those who held such position
as of March 31, 2023)

20% reduction in the basic remuneration amount(2) Reduction Period
From December 2023 to March 2024
- End -