Consolidated Financial Statements for the Fiscal Year Ended March 31, 2020 (U.S. Accounting Standards)[Translation]
May 15, 2020
Listed Company: Wacoal Holdings Corp.
Stock Exchanges: Tokyo (1st section)
Code Number: 3591 URL: https://www.wacoalholdings.jp/
Representative: (Position) Representative Director, President and Corporate Officer(Name) Hironobu Yasuhara
For Inquiries:(Position) Corporate Officer, General Manager of Corporate Planning (Name) Hiroaki Miyake Tel: +81 (075) 682-1010
Scheduled date of Ordinary Shareholders’ Meeting: June 26, 2020
Scheduled Commencement Date of Dividend Payment: June 3, 2020
Scheduled date of Annual Securities Report Filing: June 26, 2020
Supplementary materials regarding Annual Business Results: Yes
Explanatory meeting regarding Annual Business Results: Yes(Amounts less than 1 million yen have been rounded.)1.

Consolidated Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(1) Consolidated Business Results(% indicates changes from previous fiscal year)

Net Sales

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2019
(Note) Comprehensive income:Operating Income

Income Before Income
Taxes and Equity in Net
Income of AffiliatedCompanies

Net Income
Attributable to Wacoal
Holdings Corp.

Millions of Yen %Millions of Yen %Millions of Yen %186,760 (3.8)
6,632
35.9
4,359
97.9
194,201 (0.8)
4,879(57.6)
2,203(84.6)
Fiscal Year ended March 31, 2020: 1,521 million yen (- %)Fiscal Year ended March 31, 2019: (5,046) million yen (- %)Millions of Yen %3,472 918.2
341 (96.5)

Ratio of Income
Before Income
Ratio of Net Income
Net Income
Diluted Net Income
Taxes and
Ratio of
Attributable toAttributable toAttributable toEquity in Net
OperatingWacoal Holdings
Wacoal Holdings
Wacoal Holdings
Income ofIncome to Net
Corp. toCorp. Per ShareCorp. Per Share
AffiliatedSales
Shareholders’ Equity
Companies toTotal Assets
Yen
Yen
%
%
%
Fiscal Year Ended March 31, 2020
54.26
54.05
1.6
1.6
3.6
Fiscal Year Ended March 31, 2019
5.16
5.14
0.2
0.8
2.5
(Reference) Equity in net income of affiliated companies:
Fiscal Year ended March 31, 2020: 62 million yen
Fiscal Year ended March 31, 2019: 725 million yen(2) Consolidated Financial Condition

Total Assets

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2019

Total Equity(Net Assets)

Millions of Yen Millions of Yen
277,688
209,448281,767
221,144

Total Shareholders’ Total Shareholders’EquityEquity Ratio
Millions of Yen
205,371
216,494

%
74.0
76.8

Shareholders’EquityPer ShareYen
3,291.06
3,321.57(3) Consolidated Cash Flow Status

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2019

Cash Flow provided Cash Flow provided by Cash Flow provided by Balance of Cash and Cashby Operating(used in) Investingused in Financing
Equivalents at End of Fiscal
Activities
Activities
Activities
Year
Millions of Yen
Millions of Yen
Millions of Yen
Millions of Yen
13,325
2,569(17,471)
27,905
13,620(2,474)(10,872)
30,133-1-

2.

Status of Dividends

Annual Dividend
End ofFirst
Quarter

End ofSecondQuarter

End ofThird
QuarterYear-end

Annual

Yen

Yen

Yen

Yen

Yen

Total
Amount ofDividends(annual)Payout Ratio(consolidated)

Ratio of
Dividend to
Shareholders’Equity(consolidated)%%

Millions of
Yen
4,732
3,808

Fiscal Year Ended March 31, 2019
36.00
36.00
72.00
1,395.3
Fiscal Year Ended March 31, 2020
40.00
20.00
60.00
110.6
Fiscal Year Ending March 31,
2021 (Estimates)(Note) Breakdown of the end of second quarter cash dividend per share for the fiscal year ended March 31, 2020:
Ordinary dividend: 36.00 yen
Special anniversary dividend: 4.00 yen
Breakdown of the year-end cash dividend per share for the fiscal year ended March 31, 2020:
Ordinary dividend: 16.00 yen
Special anniversary dividend: 4.00 yen
The dividend for the fiscal year ending March 31, 2021 is undetermined at this point.
3.

2.1
1.8

Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2021 (April 1, 2020 – March 31, 2021)

At this point, it is difficult to assess the impact of the coronavirus outbreak on our group and to reasonably make any business forecast.
Accordingly, our forecast of consolidated results for the fiscal year ending March 31, 2021 is undetermined and will be announced as soon as
the details become available.

*Notes(1) Changes in significant subsidiaries during the fiscal year ended March 31, 2020 (change in scope of consolidation): None
New: None
Excluded: None
(Note) For details, please see “3. Consolidated Financial Statements and Accompanying Notes (7) Basic Significant Matters in
Preparation of Consolidated Financial Statements” on page 18.
(2) Changes in Accounting Principles:(i) Changes due to modifications in accounting standards, etc.: Yes(ii) Changes other than (i) above: None
(Note) For details, please see “3. Consolidated Financial Statements and Accompanying Notes (7) Basic Significant Matters in
Preparation of Consolidated Financial Statements” on page 19.
(3) Number of Issued Shares (Common Stock)

(i)
(ii)
(iii)

Number of issued shares (including treasury stock) as of period-end:
Number of shares held as treasury stock as of period-end:
Average number of shares during the period:-2-

Fiscal Year Ended
March 31, 2020
68,589,042 shares
6,186,410 shares
63,989,561 sharesFiscal Year Ended
March 31, 201970,689,042 shares
5,510,891 shares
66,143,405 shares

(Reference) Summary of Non-consolidated Results1.

Non-consolidated Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 – March 31, 2020)(1) Non-consolidated Business Results

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2019

Net Sales
Millions of Yen %13,346(15.1)
15,715
24.3

Fiscal Year Ended March 31, 2020
Fiscal Year Ended March 31, 2019

Net Income
Per Share
Yen
136.93
90.24

Operating Income
Millions of Yen %9,371(20.5)
11,79238.0(% indicates changes from previous fiscal year)
Ordinary Income
Net Income
Millions of Yen %Millions of Yen %9,111(19.0)
8,762
46.8
11,255
78.4
5,968
(7.6)

Diluted Net Income
Per ShareYen
136.3989.91(2) Non-consolidated Financial Condition(% indicates changes from previous fiscal year)
Total Assets
Net Assets
Capital-to-asset Ratio
Net Asset per Share
Millions of Yen
Millions of Yen%
Yen
Fiscal Year Ended March 31, 2020
156,000
130,996
83.6
2,090.11
Fiscal Year Ended March 31, 2019
154,554
134,81386.9
2,060.13(Reference) Equity Capital: As of the end of the fiscal year ended March 31, 2020: 130,428 million yen
As of the end of the fiscal year ended March 31, 2019: 134,275 million yen*These financial statements are not subject to audit procedures by the certified public accountants or the independent auditor.
*At this point, it is difficult to assess the impact of the coronavirus outbreak on our group and to reasonably make any business forecast.
Accordingly, our forecast of consolidated results is undetermined and will be announced as soon as the details become available. For details,
please see “1. Business Results (1) Business Results for Fiscal Year 2020” on page 9.

-3-

Table of Contents for Attached Materials
1.

Business Results -------------------------------------------------------------------------------------------------------------------------------------- 5(1)

Business Results for Fiscal Year 2020 ------------------------------------------------------------------------------------------------------------ 5(2)

Financial Condition as of Fiscal Year 2020 ------------------------------------------------------------------------------------------------------ 10(3)

Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2020 and Fiscal Year 2021 ----------------------------- 11

2.

Basic Policies regarding Selection of Accounting Standards----------------------------------------------------------------------------------- 11

3.

Consolidated Financial Statements and Accompanying Notes-------------------------------------------------------------------------------- 12(1)

Consolidated Balance Sheets ---------------------------------------------------------------------------------------------------------------------- 12(2)

Consolidated Statements of Income--------------------------------------------------------------------------------------------------------------- 14(3)

Consolidated Statements of Comprehensive Income ------------------------------------------------------------------------------------------- 15(4)

Consolidated Statements of Equity ---------------------------------------------------------------------------------------------------------------- 16(5)

Consolidated Statements of Cash Flows ---------------------------------------------------------------------------------------------------------- 17(6)

Notes on Going Concern --------------------------------------------------------------------------------------------------------------------------- 18(7)

Basic Significant Matters in Preparation of Consolidated Financial Statements ------------------------------------------------------------ 18(8)

Notes to the Consolidated Financial Statements ------------------------------------------------------------------------------------------------ 19-4-

Qualitative Information and Financial Statements
1.

Business Results(1) Business Results for Fiscal Year 2020(i) Results for the Fiscal Year Ended March 31, 2020

Net sales
Cost of sales
Sales profit
Selling, general and administrative expenses
Impairment charges on goodwill and other intangible
assets (A)Operating income
Other income
Valuation loss on marketable securities andinvestments – net (B)Income before income taxes and equity in net incomeof affiliated companies
Net income attributable to Wacoal Holdings Corp.
Reference figure (i): Operating income not taking into
account A
Reference figure (ii): Income before income taxes andequity in net income of affiliated companies not taking
into account A and B

Previous Fiscal Year(ended March 2019)
Amount194,201
89,804
104,397
93,684
5,834

Current Fiscal Year(ended March 2020)
Amount186,760
84,959101,801
94,696
473(Millions of Yen)
Increased/(Decreased) fromprevious fiscal year
Amount%(7,441)(3.8)(4,845)(5.4)(2,596)(2.5)+1,012+1.1(5,361)(91.9)

4,879
2,894(5,570)

6,632
1,487
(3,760)+1,753(1,407)+1,810+35.9(48.6)
-

2,203

4,359

+2,156

+97.9

341

3,472

+3,131+918.2

10,713

7,105(3,608)(33.7)

13,607

8,592(5,015)(36.9)

Our group entered the first year (from April 1, 2019 to March 31, 2020) of our mid-term business plan and continues to implement various
initiatives based on our basic policy to understand the actual situation, estimate future demand and implement drastic reform, whileemphasizing growth. Wacoal Corp., which aims to return its business to growth and improve profitability, made efforts to improve CX(customer experience) by innovation through the introduction of 3D body scanning and an AI (artificial intelligence)-based customer service
system in stores (six shops), and creating an environment for effective use of our customer database to coordinate and merge the physical storesand e-commerce channels. In the overseas markets, we have made efforts to create growth opportunities and strengthen our competitiveness in
e-commerce, which is one of our business challenges, and as part of such initiative, we acquired all of the issued and outstanding shares ofIntimates Online, Inc. (“Intimates Online”), a women’s LIVELY brand innerwear design and sales company in the U.S., at the end of July 2019,making Intimates Online our wholly-owned subsidiary (the operating results of our acquired subsidiary, Intimates Online, have been included
in our consolidated results from the second quarter of the current consolidated fiscal year and are disclosed along with Wacoal International
Corp. (U.S.) under the “Wacoal Business (Overseas)” segment). Although we implemented these initiatives, the business environment
surrounding our group has become extremely difficult due to the effects of a slowdown in global economic activities resulting from thecoronavirus outbreak (the “outbreak”) during the fourth quarter of the current fiscal year, in addition to the impact of the slowdown in consumer
spending after consumption tax increase in October 2019.
As a result of the above, our consolidated sales for the current fiscal year were 186.76 billion yen, a decrease of 3.8% as compared to suchconsolidated sales for the previous fiscal year. In addition to the prolonged effect of the slowdown in demand after the consumption tax
increase, our domestic business activities were impacted by a decrease in the number of customers visiting our domestic retail stores following
the implementation of self-isolation measures since March after the spread of the outbreak. Our overseas business was negatively impacted by
the weak sales at department stores in the United Kingdom and United States, poor sales from our raw materials factory in Thailand and theimpact of the appreciation of the Japanese yen (1.78 billion yen), as well as the suspension of economic activities due to lockdown measures
implemented at major cities since March, despite the positive impact of the consolidation of Intimates Online results. Accordingly, revenue
from our domestic and overseas businesses both decreased.
Consolidated operating income was 6.63 billion yen, an increase of 35.9% as compared to such consolidated operating income for theprevious fiscal year. Both our domestic and overseas businesses recorded a decrease in profit, due to decreased revenue from the wholesale
business of Wacoal Corp. and an increase in IT-related expenses with respect to our domestic business, and due to the impact of inclusion ofoperating loss from Intimates Online, non-recurrence expenses incurred for the acquisition of Intimates Online, as well as the recognition of
impairment charges on property, plant and equipment (0.77 billion yen) related to the raw material factory in Thailand with respect to ouroverseas business. Although we also recorded 0.47 billion yen as impairment charges on goodwill and other intangible assets for the current
fiscal year, we recorded an increase in operating income because the amount of such impairment charges was less than that for the previous
fiscal year (5.83 billion yen) (See Row A in the table above).
-5-Consolidated income before income taxes and equity in net income of affiliated companies was 4.36 billion yen, an increase of 97.9% ascompared to such consolidated income for the previous fiscal year. Although we recorded valuation loss on marketable securities andinvestments (net) for both the previous fiscal year and the current fiscal year, we recorded an increase in the consolidated income since theamount of such valuation loss was less than that for the previous fiscal year (See Row B in the table above). (We have been using U.S.
accounting standards, under which equity securities held by the Company and consolidated subsidiaries are measured at fair value, and anychange from the beginning of the period is recognized as other income (expenses).)
As a result of the above, net income attributable to Wacoal Holdings Corp., the ratio of operating income to net sales and the ratio of net
income attributable to Wacoal Holdings Corp. to shareholders’ equity for the current fiscal year were, 3.47 billion yen, 3.6% and 1.6%,
respectively.
The exchange rates used for the current fiscal year (previous fiscal year) were: 108.74 yen (110.91 yen) to the U.S. dollar; 138.24 yen(145.68 yen) to the Sterling pound; and 15.78 yen (16.72 yen) to the Chinese yuan.

-6-Business Overview of Our Operating Segments(Millions of Yen)
Previous Fiscal Year(ended March 31, 2019)
AmountTotal Net Sales
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other

Operating Income/(Loss)
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other

194,201
113,400
53,10010,491
17,210Current Fiscal Year(ended March 31, 2020)

Distribution
Ratio (%)
100.0
58.4
27.3
5.4
8.9

Amount186,760
109,70950,552
10,48016,019Distribution
Ratio (%)
100.0
58.7
27.1
5.6
8.6

Increased/(Decreased)from previous year
Amount%(7,441)(3,691)(2,548)(11)(1,191)

(3.8)
(3.3)
(4.8)
(0.1)
(6.9)

Previous Fiscal Year(ended March 31, 2019)

Current Fiscal Year(ended March 31, 2020)

Increased/(Decreased)from previous fiscal year

Amount% to Sales

Amount% to Sales

Amount

%

2.5
5.6
8.6
-

6,632
5,782
1,493
(351)
(292)

3.6
5.3
3.0
-

+1,753(543)(3,088)+5,508
(124)

+35.9
(8.6)
(67.4)
-

4,879
6,325
4,581
(5,859)(168)(Reference) Net Sales and Operating Income/ (Loss) of Major Subsidiaries(Millions of Yen)

Net Sales

Previous Fiscal Year(ended March 31, 2019)

102,356
4,181
18,486

Distribution
Ratio (%)
52.7
2.2
9.5

14,106
11,617
10,491
6,284
9,414

7.3
6.0
5.4
3.2
4.8

AmountWacoal Corp.
Ai Co., Ltd.
Wacoal International Corp.
(U.S)
Wacoal Europe Ltd.
Wacoal China Co., Ltd.
Peach John Co., Ltd.
Lecien Corporation
Nanasai Co., Ltd.
*Sales to external customers only

Operating Income/(Loss)

Wacoal Corp.
Ai Co., Ltd.
Wacoal International Corp.
(U.S.)
Wacoal Europe Ltd.
Wacoal China Co., Ltd.
Peach John Co., Ltd.
Lecien Corporation
Nanasai Co., Ltd.

Current Fiscal Year(ended March 31, 2020)

99,224
3,597
19,194

Distribution
Ratio (%)
53.1
1.9
10.3

12,98811,081
10,480
5,760
8,717

7.0
5.9
5.6
3.1
4.7

AmountIncreased/(Decreased)from previous fiscal year
Amount%(3,132)
(584)
+708

(3.1)
(14.0)+3.8(1,118)
(536)
(11)
(524)
(697)

(7.9)
(4.6)
(0.1)
(8.3)
(7.4)

Previous Fiscal Year(ended March 31, 2019)

Current Fiscal Year(ended March 31, 2020)

Increased/(Decreased)from previous fiscal year

Amount% to Sales

Amount% to Sales

Amount

%

5,099
(321)
2,095

5.0
11.3

3,140
(269)
401

3.2
2.1

(1,959)+52(1,694)(38.4)(80.9)

1,407
913(5,859)
(375)
282

10.0
7.9
3.0

1,007
923
(351)
(478)
218

7.8
8.3
2.5

(400)
+10
+5,508(103)(64)(28.4)+1.1(22.7)-7-

a.

Wacoal Business (Domestic)

Sales attributable to our “Wacoal Business (Domestic)” segment decreased by 3.3% as compared to such sales for the previous fiscal year.
While we recorded an increase of 3.0% in revenue for the first half of the current fiscal year (from April to September) due to the positive
impact of the last-minute rise in demand before the consumption tax increase, we recorded a decrease of 10.0% in revenue for the second halfof the current fiscal year (from October to March) due to self-isolation measures implemented against the spread of the outbreak. Operating
income decreased by 8.6% due to the impact of decreased revenue from our wholesale business of Wacoal Corp. and the operating loss that werecorded with respect to Ai Co., Ltd., which distributes resort wear and undergarments.
Wacoal Corp.:
Sales from Wacoal Corp. decreased by 3.1% as compared to such sales for the previous fiscal year. Sales from our products under theWing brand which are mainly sold at general merchandise stores exceeded the sales for the previous fiscal year due to strong sales of ourregular products, as well as the successful sales promotion of our wireless “Synchro Bra” products. Sales from our products under the Wacoal
brand fell below the sales for the previous fiscal year due to a decrease in the number of customers visiting our retail stores following the spreadof the outbreak and the weak sales from our key sales channels such as department stores resulting from the slowdown in demand after the
consumption tax increase, despite growth in sales of certain products such as “Night Up Bra”. In addition, sales from products other thaninnerwear, such as nightwear and sportswear also fell significantly below such sales for the previous fiscal year as a result of weak sales fromour key sales channels. Although sales from our retail business were also poor during March due to the spread of the outbreak, sales exceeded
the sales for the previous fiscal year as a result of initiatives that we implemented to minimize the decline in demand after the consumption tax
increase as well as our successful marketing to the shop members, the number of which reached 1.2 million. In addition, sales from our
e-commerce website maintained high growth resulting from strengthened communication with our customers attributable to marketing
automation.
Operating income decreased by 38.4% as compared to operating income for the previous fiscal year. While gross profit rate from ourwholesale and retail businesses continued to improve, operating income was significantly impacted by a drastic sales decline in March in thewholesale business, in addition to an increase in IT related expenses incurred for the implementation of our omni-channel strategies.
b.

Wacoal Business (Overseas)

Sales attributable to our “Wacoal Business (Overseas)” segment on a Japanese yen basis decreased by 4.8% as compared to such sales forthe previous fiscal year due to the impact of the appreciation of the Japanese yen (1.78 billion yen), as well as weak sales from our raw materials
factory in Thailand attributable to a decrease in the number of orders received and a drastic sales decline in Europe and North America due tothe spread of the outbreak since mid-March. Operating income decreased by 67.4% as compared to operating income for the previous fiscal
year due to the impact of decreased profit of Wacoal International Corp. (U.S.) resulting from the acquisition of Intimates Online, as well as therecognition of impairment charges of 0.77 billion yen on property, plant and equipment with respect to our raw materials factory in Thailand.
Wacoal International Corp. (U.S.):
Sales from Wacoal International Corp. (U.S.) on a local currency basis increased by 5.9% as compared to such sales for the previous fiscal
year, while sales on a Japanese yen basis increased by 3.8%. This increase was due to the inclusion of sales of 11.9 million dollars(approximately 1.3 billion yen) from Intimates Online, which has been consolidated into our business results since August. Revenue from
Wacoal America Inc., which distributes “Wacoal” and “b.tempt’d” brand products, decreased due to the weak over-the-counter sales at
department stores (physical stores), while sales from our e-commerce website and third-party e-commerce websites were strong.
Operating income on a local currency basis decreased by 80.5% (80.9% on a Japanese yen basis) as compared to such operating income
for the previous fiscal year. This significant decrease was due to lower gross profit rate resulting from the higher percentage of sales subject todiscounts, the impact of decreased profit from Wacoal America Inc. resulting from higher labor costs and office lease expenses, the impact ofinclusion of operating loss of 11.5 million dollars (approximately 1.25 billion yen) from Intimates Online, as well as non-recurring expenses
incurred for the acquisition.
Wacoal Europe Ltd.:Sales from Wacoal Europe Ltd. on a local currency basis decreased by 3.0% (7.9% on a Japanese yen basis) as compared to such sales forthe previous fiscal year. While sales were weak in the United Kingdom due to poor sales at department stores, sales exceeded such sales for theprevious fiscal year resulting from the expansion of sales in the North America, France and other European countries up until the third quarterof the current fiscal year. Revenue, however, decreased as a result of weak sales recorded during March which was impacted by the spread of
the outbreak.
Operating income on a local currency basis decreased by 24.6% (28.4% on a Japanese yen basis) as compared to such operating income
for the previous fiscal year due to a more aggressive advertising campaign to expand our brand awareness, recognition of expenses incurred forthe redesign of our own e-commerce website, and increases in labor costs incurred in connection with the launch of business with departments
stores in Spain.
Wacoal China Co., Ltd.:-8-

Sales from Wacoal China Co., Ltd. on a local currency basis increased by 1.1% as compared to such sales for the previous fiscal year,
while sales on a Japanese yen basis decreased by 4.6% due to the impact of the appreciation of the Japanese yen. We maintained high growthfrom our e-commerce sales by strengthening our alliance with online mall providers through initiatives including the active sales promotion of“Wacoal” brand products during the high demand season, and launch of Japanese “Amphi” brand products targeting a new customer segment.
As the fiscal year-end for Wacoal China Co., Ltd. is December, the spread of the outbreak did not affect its results for the current fiscal year.
Operating income on a local currency basis increased by 7.1% (1.1% on a Japanese yen basis) as compared to such operating income forthe previous fiscal year. Despite increases in advertising expenses and recognition of non-recurring expenses incurred in connection with therelocation of a warehouse, we recorded an increase in profit due to improvement in the gross profit rate resulting from a lower percentage of
products with low profit margins, and reduction of labor costs and office lease expenses resulting from the closing of certain underperforming
stores.
c.

Peach John BusinessOverall sales attributable to our “Peach John Business” segment remained at about the same level as such sales for the previous fiscal year.
While revenue from the mail-order business decreased as we ceased distribution of catalogues in an effort to improve business efficiency, werecorded an increase in revenue from our domestic retail stores, which closed certain underperforming stores in Japan, due to steady sales of ourregular products, as well as strong sales subject to discounts.
We recorded an operating loss of 0.35 billion yen (an operating loss of 5.86 billion yen recorded for the previous fiscal year). While werecorded income for our business in Japan due to various efforts including reduction of selling, general and administrative expenses, as well as
improvement in gross profit rate, we recorded an operating loss due to recognition of impairment charges of 0.19 billion yen on intangible
assets (trademark), in addition to the operating loss recorded from our Chinese business.
d.

Other

Overall sales attributable to our “Other” business segment decreased by 6.9% as compared to such sales for the previous fiscal year, while
we recorded an operating loss of 0.29 billion yen (an operating loss of 0.17 billion recorded for the previous fiscal year).
Lecien Corporation:
While sales of our private products handled at general merchandise stores and specialty stores exceeded such sales for the previous fiscal
year, sales from Lecien Corporation decreased by 8.3% as compared to such sales for the previous fiscal year due to the impact of decreased
revenue in our material business. We recorded an operating loss due to recognition of one-time expenses incurred for the withdrawal fromcertain businesses including the apparel business.
Nanasai Co., Ltd.:Sales from Nanasai Co., Ltd. decreased by 7.4% as compared to such sales for the previous fiscal year due to the absence of the one-timeincrease in revenue (large-scale construction for renovation such as department stores) in the previous fiscal year. Operating income decreased
by 22.7% as compared to operating income for the previous fiscal year due to decreased revenue.
(ii) Business Forecast for Next Fiscal YearThe coronavirus outbreak continues to have a very significant impact on our group’s business activities due to measures such assuspension of operations and stay-at-home measures in efforts to prevent the spread of infection. As the measures to prevent the spread of theoutbreak continue, we expect that the slowdown in consumer spending due to anticipated deterioration in the employment and income
environment will continue to have a negative impact on our group’s management as well as sales and/or profit.
At this point, it is difficult to assess the impact of the coronavirus on our group and to reasonably make any business forecast. Accordingly,
our forecast of consolidated business results for the fiscal year ending March 31, 2021 is undetermined and will be announced as soon as thedetails become available.
Under such difficult circumstances, our group will reassess all of our business activities, decrease costs such as advertising expenses andofficers’ remuneration (*) and review the timing of new investments. These will be implemented while taking into consideration the health andsafety of our group’s customers, employees and related parties. In addition, we will seek to expand loan programs from financial institutions toensure liquidity for our group companies.
We will conduct bold revision of our initiatives and costs, further accelerate our efforts to introduce digital transformation, and establish a
new road map to achieve growth in business by effectively utilizing our customer database, coordinating and merging the physical stores ande-commerce channels, and strengthening our efforts on improving CX (customer experience). In addition, we will reform our businessstructure to generate stable profit by steadily identifying changes in consumer values and distribution and by making further progress in ourefforts to be selective and concentrated in our businesses within the entire group.

-9-(*) Reduction in Officers’ Remuneration
The forecast of consolidated business results for the fiscal year ending March 31, 2021 is yet to be determined due to the impact of the spread of
the coronavirus. As our officers accept the gravity of the severe financial conditions, we have resolved at the meeting of the Board of Directors
held today (May 15, 2020) to decrease officers’ remuneration payable to the Directors (excluding outside directors) of Wacoal Holdings Corp.
and Wacoal Corp. and have obtained consent from all the Audit & Supervisory Board Members (excluding outside Audit & Supervisory Board
Members) of Wacoal Holdings Corp. and Wacoal Corp. after their discussion was held among such Audit & Supervisory Board Members. The
officers’ remuneration will be reduced by 30% for the Chairman and President and by 20% for other Directors and Audit & Supervisory Board
Members with respect to their monthly remuneration (target period: for 6 months from May 2020 to October 2020).
Please see Additional Information on Business Results which are released today (May 15, 2020) regarding our group status in connection withthe coronavirus outbreak.
(2) Financial Condition as of Fiscal Year 2020
Status of Assets, Liabilities and Shareholders’ Equity
Our total assets as of March 31, 2020 were 277,688 million yen, a decrease of 4,079 million yen from the end of the previous fiscal
year, mainly due to decreases in investments resulting from drop in market value.
With regard to liabilities, our current liabilities were 68,240 million yen, an increase of 7,617 million yen from the end of the previous
fiscal year, due to the recognition of operating lease liabilities following the changes in the accounting policy, as well as increases in contingent
consideration liability.
Shareholders’ equity was 205,371 million yen, a decrease of 11,123 million yen from the end of the previous fiscal year, due todecreases in retained earnings and foreign currency translation adjustments.
As a result of the above, our total shareholders’ equity ratio as of March 31, 2020 was 74.0%, a decrease of 2.8% from the end of theprevious fiscal year.
Cash Flows Status
Cash flow provided by operating activities:
Cash flow provided by operating activities was 13,325 million yen, a decrease of 295 million yen as compared to the previous fiscal
year, after adjustments for changes in assets and liabilities to our net income of 2,968 million yen plus adjustments for depreciation expenses
and deferred taxes.
Cash flow provided by investing activities:
Cash flow provided by investing activities was 2,569 million yen, as compared to cash flow used in investing activities in the amountof 2,474 million yen for the previous fiscal year, due to proceeds from sales and redemption of equity securities and decreases in time deposits,
despite payments made in connection with acquisition of new subsidiaries (net of cash acquired) and payments made to acquire tangible andintangible assets.
Cash flow used in financing activities:
Cash flow used in financing activities was 17,471 million yen, an increase of 6,599 million yen as compared to the previous fiscal
year, due to a decrease in short-term bank loans, repurchase of treasury stock and cash dividend payments.
As a result, the balance of cash and cash equivalents at the end of fiscal year 2020, calculated by adding the exchange difference on
cash and cash equivalents to the above total, was 27,905 million yen, a decrease of 2,228 million yen as compared to the end of the previous
fiscal year.

- 10 -

Trends in certain cash-flow indicators

Shareholders’ equity ratio (%)
Shareholders’ equity ratio basedon market value (%)
Debt redemption years (years)
Interest coverage ratio (times)

Fiscal Year
Ended
March 31, 2018

Fiscal Year
Ended
March 31, 2019

Fiscal Year
Ended
March 31, 2020

78.0

76.8

74.0

69.5

63.7

52.7

0.5

0.6

0.3

1,408.5

1,238.2

666.3

Shareholders’ equity ratio = shareholders’ equity/total assets
Shareholders’ equity ratio based on the market value = aggregate market value of shareholders’ equity/total assets
Debt redemption years = interest-bearing debt/cash flow provided by operating activities
Interest coverage ratio = cash flow provided by operating activities/interest payment
Interest payment = “cash paid for interest” as described in the additional cash flow information following the consolidated statementsof cash flows(3) Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2020 and Fiscal Year 2021
Our basic policy on profit distributions to shareholders is to make stable distributions based on consideration of our consolidated
performance, while seeking to increase our enterprise value through active investments aimed at higher profitability and to increase net income
per share.
With respect to retained earnings, we will actively invest in expanding our customer bases for our domestic business and our overseas
businesses, with the aim of improving our corporate value. We also plan to use our retained earnings for strategic investments for maintaining
competitiveness and reinforcing growth. With these efforts, we seek to benefit our shareholders by improving future profitability.
We also intend to acquire treasury stock in a flexible manner taking into account the level of free cash flow as well as the market
environment, and will make effort to improve capital efficiency and return profits to our shareholders.
The coronavirus outbreak will, however, have a significant impact on our group’s business and as uncertainty remains over the end of thecoronavirus outbreak, our urgent priority is to ensure liquidity on hand. It is with our deepest regret to inform you that we have revised andreduced our most recently forecasted year-end dividend per share of 40.00 yen (including the special anniversary dividend of 4.00 yen) to 20.00
yen (including special anniversary dividend of 4.00 yen) (with the result that the annual cash dividend per share will be 60.00 yen, including theinterim dividend per share of 40.00 yen).
We sincerely apologize for this inconvenience, and kindly ask for your continued support and cooperation. The dividend for the next
fiscal year ending March 31, 2021 is undetermined at this point, and will be announced as soon as we are able to reasonably forecast anddisclose our business results.
2.

Basic Policies regarding Selection of Accounting Standards

Our group has been preparing our consolidated financial statements based on the accounting standards established prior to the introductionof the accounting standards for consolidated financial statements in Japan, and for this reason, we have been using the accounting standards
generally accepted in the United States.
Our group is making efforts to prepare internal manuals and guidelines in anticipation of International Financial Reporting Standards
adoption in the future.

- 11 -

3.

Consolidated Financial Statements and Accompanying Notes(1) Consolidated Balance Sheets
AmountIncreased/(Decreased)
Millions of Yen

Accounts

As of March 31, 2019

As of March 31, 2020

(Assets)

Millions of Yen

Millions of Yen

Cash and cash equivalents

30,13327,905(2,228)Time deposits

4,004

797

(3,207)

446

656

210

Notes and accounts receivable

24,98920,062(4,927)

Allowance for doubtful receivables
Inventories(229)
42,508(489)
43,427(260)
919

Return assets

1,180

868

(312)

Other current assets

4,985

4,964

(21)

108,016

98,190(9,826)

Land

21,54921,460(89)

Buildings and building improvements

74,03374,0396

Machinery and equipment

18,914

18,782(132)

Construction in progress

478

1,090

612

114,974

115,371397(61,704)(63,288)(1,584)53,27052,083(1,187)

Operating leases right-of-use assets-

13,54013,540Investments in affiliated companies

21,85921,595(264)

Investments

63,372

43,904(19,468)

Goodwill

11,954

22,371

10,417

Other intangible assets

12,297

14,5472,250

Prepaid pension expense

3,990

4,974

984

Deferred income taxes

1,362

1,118

(244)

Other

5,647

5,366

(281)

120,481

127,415

6,934

281,767

277,688(4,079)I. Current assets

Marketable securities

Total current assets
II. Property, Plant and Equipment

Accumulated depreciation
Net property, plant and equipment
III. Other assets

Total other assets
Total Assets- 12 -

Accounts

As of March 31, 2019

As of March 31, 2020

(Liabilities)

Millions of Yen

Millions of Yen

AmountIncreased/(Decreased)
Millions of Yen

8,116

3,364

(4,752)

Trade notes payables

1,155

1,112

(43)

Trade accounts payables

10,6389,588(1,050)

Other payables

6,548

7,107

559

18,341

17,807(534)

Accrued payroll and bonuses

7,209

6,734

(475)

Income taxes payable

2,759

4,878

2,119

Refund liabilities

3,482

2,645

(837)

Short-term operating lease liabilities

-

4,600

4,600

Current portion of long-term debt

50

50

-

3,905

4,029

124

43,862

44,107

245

88

35

(53)

1,828

2,069

241

12,567

7,911(4,656)Long-term operating lease liabilities

-

9,101

9,101

Contingent consideration (long-term)

-

2,786

2,786

I. Current Liabilities
Short-term bank loans
Notes and accounts payables

Other current liabilities
Total current liabilities
II. Long-term liabilities
Long-term debt
Liabilities for termination and retirement
benefit
Deferred income taxes

Other long-term liabilities

2,278

2,231

(47)

Total long-term liabilities

16,761

24,133

7,372

Total liabilities

60,623

68,2407,617

I. Common stock

13,26013,260-

II. Additional paid-in capital

29,807

29,83629

III. Retained earnings
IV. Accumulated other comprehensive (loss)
incomeForeign currency translation adjustments

193,139

185,233(7,906)

1,551(1,033)(2,584)

Pension liability adjustments(5,679)(4,594)

1,085

V. Treasury stock, at cost
Total Wacoal Holdings Corp.
shareholders’ equity
VI. Noncontrolling interests
Total equity(15,584)(17,331)(1,747)

216,494

205,371(11,123)4,650
221,144

4,077
209,448(573)(11,696)281,767

277,688(4,079)(Equity)

Total liabilities and equity- 13 -

(2) Consolidated Statements of Income

Accounts

I.

Fiscal Year Ended
March 31, 2019

Fiscal Year Ended
March 31, 2020

Millions of Yen%

Millions of Yen

194,201

100.0

Cost of sales
Selling, general and administrative
expenses
Impairment charges on goodwill andother intangible assets

89,804

Total operating costs and expenses

Net Sales

AmountIncreased/(Decreased)%

Millions of Yen

186,760

100.0(7,441)

46.3

84,95945.5(4,845)

93,68448.2

94,696

50.7

1,012

5,834

3.0

473

0.2

(5,361)

189,32297.5

180,128

96.4(9,194)

4,879

2.5

6,632

3.6

1,753

II. Operating costs and expenses

Operating income
III. Other income (expenses)
Interest income

289

177

(112)

Interest expense

(11)

(19)

(8)

1,429

1,506

77

140

-

(140)

(5,570)(3,760)1,810

Dividend income
Gain on sale or exchange of marketablesecurities and investments – net
Valuation loss on marketable securities
and investments – net
Other – net
Total other expenses
Income before income taxes and equity in
net income of affiliated companies
Income taxes
Current

1,047

(177)

(1,224)(2,676)(1.4)(2,273)

(1.3)

403

2,203

1.1

4,359

2.3

2,156

5,350

2.8

7,126

3.8

1,776

Deferred(2,817)(1.5)(5,673)(3.1)(2,856)

Total income taxes

2,533

1.3

1,453

0.7

(1,080)

(330)

(0.2)

2,906

1.6

3,236

725

0.4

62

0.0

(663)

395

0.2

2,968

1.6

2,573

(54)

(0.0)

504

0.3

558

341

0.2

3,472

1.9

3,131

Income (loss) before equity in net incomeof affiliated companies
Equity in net income of affiliatedcompanies
Net income
Net loss (income) attributable tonon-controlling interests
Net income attributable to Wacoal
Holdings Corp.

- 14 -

(3) Consolidated Statements of Comprehensive Income

Accounts

I. Net income
II. Other comprehensive (loss) income– net of tax
Foreign currency translation adjustments
Net unrealized gain (loss) on securities
Pension liability adjustments

Fiscal Year Ended
March 31, 2019

Fiscal Year Ended
March 31, 2020

AmountIncreased/(Decreased)

Millions of Yen

Millions of Yen

Millions of Yen

395

2,968

2,573

(750)

(2,532)(1,782)

(104)

-

104

(4,587)

1,085

5,672

Other comprehensive loss

(5,441)(1,447)

3,994

Comprehensive income (loss)
Comprehensive loss (income )attributable tononcontrolling interests
Comprehensive income (loss) attributable to
Wacoal Holdings Corp.

(5,046)

1,521

6,567

(18)

452

470

(5,064)

1,973

7,037

- 15 -

(4) Consolidated Statements of Equity
Fiscal Year Ended March 31, 2019
EquityShares of
Outstanding Common
Item

Common

Stock

Stock
Thousandshares

As of March 31, 2018
Cumulative effects ofadoption of
ASU2016-01
Cash dividends paid to
Wacoal Holdings Corp.
shareholders
Cash dividends paid tononcontrolling interests
Repurchase of treasury
stock
Cancellation of treasury
stock
Other
Net income
Other comprehensive
income (loss)
As of March 31, 201967,367

Additional
Paid-in
CapitalRetained

Accumulated othercomprehensive

Earnings

incomeTreasury
stock

Total
Shareholders’EquityInterests

Total Equity

Millionsof YenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillionsof Yen13,26029,765

172,418

28,597(11,328)

232,712

4,785

237,497

27,834(27,320)(4,811)514

514(4,811)(4,811)(2,200)(2,631)
11

65,178

Noncontrolling

13,260

42

(12)
341

29,807

193,139(5,405)(4,128)

(191)

(191)

(6,919)2,631(6,919)
-

32

62
341

38
54

100
395

(5,405)
216,494

(36)
4,650

(5,441)
221,144(15,584)(6,919)-Fiscal Year Ended March 31, 2020
EquityShares of
Outstanding Common
Item

Common

Stock

Stock
Thousandshares

As of March 31, 2019
Cumulative effects ofadoption of
ASU2018-11
Cash dividends paid to
Wacoal Holdings Corp.
shareholders
Cash dividends paid tononcontrolling interests
Repurchase of treasury
stock
Cancellation of treasury
stock
Other
Net income
Other comprehensive
income (loss)
As of March 31, 2020

65,178Additional
Paid-in
CapitalRetained

Accumulated other

Earnings

comprehensive
incomeTreasury
stock

Total
Shareholders’EquityInterests

Total Equity

Millionsof YenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillionsof Yen13,26029,807

193,139(4,128)(15,584)

216,494

4,650

221,144

(515)

(515)

(515)

(4,907)(4,907)(4,907)(2,798)(5,935)23

62,403

Noncontrolling

13,260

29

(21)
3,472

29,836

185,233- 16 -(1,499)(5,627)

(237)

(237)

(7,745)
5,935(7,745)
-

63

71
3,472

116
(504)

187
2,968

(1,499)205,37152
4,077(1,447)
209,448(17,331)(7,745)-(5)Consolidated Statements of Cash Flows

Accounts

I. Operating activities
1. Net income
2. Adjustments to reconcile net income to net cash provided
by operating activities(1) Depreciation and amortization(2) Provision for returns and doubtful receivables – net(3) Deferred income taxes(4) Gain or loss on sales or disposal of property, plant andequipment –net
(5) Impairment charges on property, plant and equipment(6) Impairment charges on goodwill and other intangible
assets(7) Gain on sales or exchange of marketable securities andinvestments - net(8) Valuation loss on marketable securities and investments –net(9) Equity in net loss (income) of affiliated companies,
less dividends received(10) Changes in assets and liabilities
Decrease in notes and receivable
Increase in inventories
Decrease (increase) in return assets
Increase in other current assets
Decrease in notes and accounts payable(Decrease) increase in refund liabilities
Increase (decrease) in liabilities for termination andretirement benefits
Increase in other liabilities(11) Other
Net cash provided by operating activities
II.
1.
2.
3.

Investing activities
Increase in time deposits
Decrease in time deposits
Proceeds from sale and redemption of marketablesecurities
4. Payments to acquire marketable securities
5. Proceeds from redemption of debt securities
6. Payments to acquire debt securities
7. Proceeds from sale of property, plant and equipment
8. Capital expenditures
9. Payments to acquire intangible assets
10. Acquisition of a subsidiary (net of cash acquired)
11. Proceeds from sale of shares of an affiliated company
12. Other
Net cash provided by (used in) investing activities
III. Financing activities
1. Net (decrease) in short-term bank loans
2. Repayment of long-term debt
3. Repurchase of treasury stock
4. Dividends paid on common stock
5. Dividends paid to noncontrolling interests
6. OtherNet cash used in financing activities
IV. Effect of exchange rate changes on cash and cash
equivalents
V. Net decrease in cash and cash equivalents
VI. Cash and cash equivalents, beginning of year
VII. Cash and cash equivalents, end of year

Fiscal Year Ended
March 31, 2019

Fiscal Year Ended
March 31, 2020

AmountIncreased/(Decreased)

Millions of Yen

Millions of Yen

Millions of Yen

395

2,968

2,573

5,647
(2,263)(2,817)

6,029
299(5,673)382
2,562(2,856)

48
167

103
769

55
602

5,834

473

(5,361)

(140)

-

140

5,570

3,760

(1,810)

(211)

480

691

822
(76)
(1,180)(653)(1,640)
3,482

4,685
(1,350)
312
(29)
(373)
(837)

3,863
(1,274)
1,492
624
1,267
(4,319)

(620)
1,075
180
13,620776
665
268
13,325

1,396
(410)
88
(295)

(4,783)
5,226

(438)
3,576

4,345
(1,650)

2,497
(323)
1,008
(900)
276
(2,603)(3,180)270
38(2,474)

15,252
(339)
544
104
(3,442)(3,539)(9,181)32
2,569

12,755
(16)
(464)
900
(172)
(839)
(359)
(9,181)
(270)
(6)
5,043

1,061
(50)
(6,919)(4,811)(191)
38(10,872)(4,645)(53)(7,745)(4,907)(237)
116(17,471)(5,706)
(3)
(826)
(96)
(46)
78
(6,599)372
646
29,48730,133(651)(2,228)30,13327,905(1,023)(2,874)646(2,228)- 17 -

Additional Cash Flow Information

Accounts

Fiscal Year Ended
March 31, 2019

Fiscal Year Ended
March 31, 2020

AmountIncreased/(Decreased)

11
5,068

20
4,758

9
(310)

-

4,172

4,172

954

751

(203)

Cash paid forInterest
Income taxes
Noncash investing activities
Acquisition of a subsidiary (contingent
consideration)
Acquisition of fixed assets by assuming payment
obligation(6) Notes on Going Concern
Not applicable.

(7) Basic Significant Matters in Preparation of Consolidated Financial Statements(i)

Matters Regarding the Scope of Consolidation and Application of the Equity Method

Major consolidated subsidiaries:
Wacoal Corporation, Peach John Co., Ltd., Lecien Corporation, Kyushu Wacoal Manufacturing Corp., Torica Co., Ltd., Nanasai Co.,
Ltd., Wacoal International Corp., Wacoal America, Inc., Wacoal Europe Ltd., Wacoal EMEA Ltd., Wacoal Europe SAS, Wacoal
Hong Kong Co., Ltd., Wacoal Investment Co. (Taiwan), Ltd., Wacoal China Co., Ltd., Wacoal International Hong Kong Co., Ltd.
and A Tech Textile Co., Ltd.
Major Affiliated Companies:
Shinyoung Wacoal Inc., Taiwan Wacoal Co., Ltd. and Thai Wacoal Public Co., Ltd.
(ii) Changes Regarding Subsidiaries and Affiliated Companies
Consolidated (new): Intimates Online Inc.
Equity method (excluded): Shanghai Yadie Fashion Co., Ltd.
(iii) Standard of Preparation of Consolidated Financial Statements
The consolidated financial statements have been prepared based on terms, format and preparation methods in compliance withaccounting standards generally accepted in the United States as required in connection with the issuance of American Depositary
Receipts. For this reason, the consolidated financial statements may be different from those that have been prepared based on theConsolidated Financial Statement Regulations and the Standard of Preparation of Consolidated Financial Statements in Japan.
(iv) Significant Accounting Policiesa.

Valuation Standard of Inventories
The average cost method was mainly used for goods, products and supplies, and the first-in first-out method was used for
raw materials, with both valued at the lower of cost or market.

b.

Valuation Standard of Property, Plant and Equipment and Method of Depreciation
Property, plant and equipment are valued at the acquisition cost. Depreciation expenses are calculated mainly using thestraight-line method based on the estimated useful lives of the assets (the lease term is used for capitalized leased assets).

c.

Valuation Standard of Securities and Investments
Based on the provisions of the U.S. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification(“ASC”) 320, “Investments – Debt Securities”, and ASC 321 of FASB, “Investments – Equity Securities”, marketablesecurities and investments have been classified as “debt securities” and “equity securities”, and debt securities have beenfurther classified as “available-for-sale securities” and “held-to-maturity securities”. “Available-for-sale securities” arerecorded at fair value, and “held-to-maturity securities” are recorded at amortized cost. Gain or loss on sale of marketablesecurities and investments is calculated based on cost using the moving-average method. Equity securities are measured atfair value and unrealized holding gain or loss is recorded as net profit or loss.

d.

Liabilities for Termination and Retirement Benefits
This is accounted for based on FASB ASC 715.

e.

Consumption Taxes
Consumption taxes have been excluded from sales.
- 18 -

f.

Consolidated Statements of Cash Flows
In preparing the consolidated cash flow statements, highly liquid investments with original maturities of three (3) months
or less have been included in cash and cash equivalents.

(v) Changes in Accounting Policya. Leases - The new accounting guidance related to leases (ASU2016-02, 2018-01, 2018-11) has been adopted starting with thecurrent consolidated fiscal year. This guidance requires an entity to recognize right-to-use assets and lease liabilities on the balance
sheet for those leases classified as operating leases under the previous U.S. GAAP with a few exceptions. Our group has adopted themodified retrospective approach, electing to apply the transition requirements at the effective date with a cumulative effectadjustment to the opening balance of retained earnings in the period of adoption, and prior periods were not restated. Our group
elected to apply the package of practical expedients permitted under the transition guidance which does not require to reassess
whether any expired or existing contracts are leases, lease classification and initial direct costs. Our group also elected to apply thepractical expedient not to assess whether existing or expired land easements that were not previously accounted for as leases areleases. As a result of this adoption, operating leases right-of-use assets and operating leases liabilities of 14,550 million yen wererecorded in the consolidated balance sheet as of April 1, 2019. In addition, the application of deferred tax accounting resulted in therecording of deferred tax liabilities of 515 million yen and the decreasing of the opening balance of retained earnings as acumulative-effect adjustment in the same amount. The adoption of this guidance is not expected to have a material impact on ourgroup’s cash flows.
(8) Notes to the Consolidated Financial Statements(i) Per Share Information

Net income attributable to Wacoal Holdings Corp.
Number of average shares issued during the year
Net income attributable to Wacoal Holdings Corp. per share
Diluted net income attributable to Wacoal Holdings Corp. pershare- 19 -

Fiscal Year Ended
March 31, 2019
341 million yen
66,143,405 shares
5.16 yen

Fiscal Year Ended
March 31, 2020
3,472 million yen
63,989,561shares54.26 yen

5.14 yen

54.05 yen

(ii) Segment Informationa.

Operating Segment Information

Fiscal Year Ended March 31, 2019 (April 1, 2018 - March 31, 2019)(Millions of Yen)
Wacoalbusiness(Domestic)

Wacoalbusiness(Overseas)

Peach Johnbusiness

Other

Total

Elimination

Consolidated

Net sales(1) External customers

113,400

53,10010,491

17,210194,201-

194,201(2) Intersegment905

10,121

1,083

5,543

17,652(17,652)-

Total

114,305

63,221

11,57422,753211,853(17,652)

194,201

Operating costs and expenses
Impairment charges on goodwill
and other intangible assets
Total operating costs andexpenses

107,785

58,64011,79422,921

201,140(17,652)

183,488

195

-

5,639

-

5,834

-

5,834

107,980

58,64017,43322,921

206,974(17,652)

189,322

Operating income (loss)

6,325

4,581

(5,859)

(168)

4,879

-

4,879

Fiscal Year Ended March 31, 2020 (April 1, 2019 - March 31, 2020)(Millions of Yen)
Wacoalbusiness(Domestic)

Wacoalbusiness(Overseas)

Peach Johnbusiness

Other

Total

Elimination

Consolidated

Net sales(1) External customers

109,70950,552

10,48016,019186,760-

186,760(2) Intersegment860

10,570694

5,236

17,360(17,360)-

Total

110,569

61,122

11,174

21,255204,120(17,360)

186,760

Operating costs and expenses
Impairment charges on goodwill
and other intangible assets
Total operating costs andexpenses

104,787

59,347

11,334

21,547

197,015(17,360)

179,655

-

282

191

-

473

-

473

104,787

59,62911,525

21,547

197,488(17,360)

180,128

Operating income (loss)

5,782

1,493

(351)

(292)

6,632

-

6,632

(Note) 1.

Core products of respective businesses:
Wacoal business (Domestic): innerwear (foundation, lingerie, nightwear and children’s innerwear), outerwear, sportswear,
hosiery, etc.
Wacoal business (Overseas): innerwear (foundation, lingerie, nightwear and children’s innerwear), outerwear, sportswear,
and other textile-related products, etc.
Peach John business:
innerwear (foundation, lingerie and nightwear), outerwear, and other textile-related products,
etc.
Other:
innerwear (foundation, lingerie, nightwear and children’s innerwear), outerwear, othertextile-related products, mannequins, shop design and implementation, etc.

2.

Information on assets by operating segment:
Assets attributable to our “Wacoal Business (Overseas)” segment increased by 7,380 million yen from the end of the previous
fiscal year as a result of making Intimates Online our consolidated subsidiary during the second quarter of the current
consolidated fiscal year. Accordingly, assets attributable to our “Wacoal Business (Overseas)” segment as of the end of thecurrent consolidated fiscal year were 86,292 million yen.

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b.

Information by Region

Fiscal Year Ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of Yen)
Elimination or
corporateJapan

Asia/Oceania

Europe/N.A.

Total

External customers

140,189

22,50931,503

194,201-

194,201

II.

Operating income

242

1,578

3,059

4,879

-

4,879

III.

Long-lived assets

45,257

4,810

3,203

53,270-53,270I.

Consolidated

Net sales

Fiscal Year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of Yen)I.

Elimination or
corporateJapan

Asia/Oceania

Europe/N.A.

Total

135,273

20,59630,891

186,760-

Consolidated

Net sales
External customers

186,760

II.

Operating income (loss)

5,398

(77)

1,311

6,632

-

6,632

III.

Long-lived assets

44,014

4,034

4,035

52,083-52,083(Note) 1.
2.

3.
4.

Countries or areas are classified according to geographical proximity.
Main countries and areas belonging to classifications other than Japan
Asia/Oceania: various countries of East Asia, Southeast Asia and West Asia, and Australia
Europe/N.A.: North America and European countries
Sales in respect of consolidated companies are categorized by location.
Long-lived assets include property, plant and equipment.
c.

Overseas Sales

Fiscal Year Ended March 31, 2019 (April 1, 2018 - March 31, 2019)(Millions of Yen)I.

Overseas net sales

II.

Consolidated net sales

III.

Ratio of overseas net sales to total consolidated net sales

Asia/Oceania

Europe/N.A.

Total

22,50931,50354,012--

194,201

11.6%

16.2%

27.8%

Asia/Oceania

Europe/N.A.

20,59630,891

51,487--

186,760

11.0%

16.6%

27.6%

Fiscal Year Ended March 31, 2020 (April 1, 2019 - March 31, 2020)(Millions of Yen)I.

Overseas net sales

II.

Consolidated net sales

III.

Ratio of overseas net sales to total consolidated net sales(Note) 1.
2.

Countries or areas are classified according to geographical proximity.
Main countries and areas belonging to classifications other than Japan
Asia/Oceania: various countries of East Asia, Southeast Asia and West Asia, and Australia
Europe/N.A.: North America and European countries- 21 -Total

(iii) Status of Sales

Type of productFiscal Year Ended March 31, 2019
AmountMillions of Yen

Fiscal Year Ended March 31, 2020

Distribution ratio%

AmountMillions of Yen

Distribution ratio%

Innerwear
Foundation and lingerieNightwear
Children’s underwear
Subtotal
Outerwear/Sportswear
Hosiery
Other textile goods andrelated products
OthersTotal

146,525
8,296

75.4
4.3

144,933
7,459

77.6
4.0

1,213

0.6

1,014

0.6

156,034

80.3

153,406

82.2

14,733
1,881
9,428

7.6
1.0
4.9

12,746
1,563
7,545

6.8
0.8
4.0

12,125
194,201

6.2
100.0

11,500186,760

6.2
100.0(iv) Significant Subsequent Events
Not applicable.
- End -

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