[Translation]
Consolidated Business Results for the First Quarter of the Fiscal Year Ending March 31, 2023
[IFRS]
August 10, 2022
Stock Exchange: Tokyo

Listed Company: Wacoal Holdings Corp.
Code Number: 3591
(URL: https://www.wacoalholdings.jp/)
Representative: (Position) Representative Director, President and CEO
For Inquiries: (Position) Corporate Officer, Head of Corporate Planning Dept.

(Name) Hironobu Yasuhara(Name) Katsuya Hirooka
Tel: +81 (075) 682-1010

Scheduled quarterly report submission date:August 15, 2022
Scheduled dividend payment start date:
Supplementary materials regarding quarterly business results: Yes
Explanatory meeting regarding quarterly business results:
Yes (for institutional investors, analysts and the press)(Amounts less than 1 million yen have been rounded)

1.

First Quarter of the Fiscal Year Ending March 31, 2023 (April 1, 2022 – June 30, 2022)(1)

Consolidated Business Results(% indicates increase (decrease) from the corresponding period of the previous fiscal year)

Business
ProfitRevenue
Millions of Yen

First Quarter ended
June 30, 2022
First Quarter ended
June 30, 2021%

Profit Before
Income Taxes andEquity in Net
Profit of AffiliatedCompanies

Operating
ProfitMillions of Yen%

Millions of Yen%

Millions of Yen%

ProfitMillions of Yen%

49,027 15.5

2,378

21.2

2,469

0.5

3,580

23.4

2,467

51.1

42,453

1,962

-

2,456

-

2,902

-

1,633

-

-

Net Profit
Attributable to
Owners of Parent

Total
Comprehensive
IncomeBasic Earnings
per Share

Diluted Earnings
per Share

Millions of Yen

Millions of Yen %

Yen

Yen

%

First Quarter ended
2,404 47.8
8,273
39.17
39.01
June 30, 2022
First Quarter ended
1,627
632
26.06
25.95
June 30, 2021
(Note) Business profit is calculated by subtracting cost of sales, and selling, general and administrative expenses fromrevenue.
(2)

Consolidated Financial Condition

As of June 30, 2022
As of the end of Fiscal
Year (March 31, 2022)

Ratio of Equity
Attributable to
Owners of Parent

Total Assets

Total Equity

Equity Attributable to
Owners of Parent

Millions of Yen

Millions of Yen

Millions of Yen

305,330

226,172

223,23973.1

299,177

220,868

217,990

72.9

-1-

%

2.

Status of Dividends

End of First
Quarter
Yen

Annual Dividend
End of Second End of Third
Quarter
Quarter
Yen

Yen

Fiscal Year Ended March 31, 2022
–
20.00
–
Fiscal Year Ending March 31, 2023–
Fiscal Year Ending March 31, 2023
40.00–
(Estimates)(Note) Revision of estimated dividends announced during the latest quarter: No
3.

Year-End

Total

Yen

Yen

30.00

50.00

40.00

80.00

Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31,
2023)(% indicates increase (decrease) from the previous fiscal year with respect to “Annual” and from the six-month period ended September 30,
2021 with respect to “Six-month Period Ending September, 30, 2022”)

Revenue

Millions of Yen %Business Profit Operating Profit

Profit Before
Income Taxes
and Equity in
Net Profit ofAffiliatedCompanies

Net Profit
Attributable to
Owners of
ParentBasic Earnings
per Share

Millions of Yen %Millions of Yen %Millions of Yen %YenMillions of Yen %Six-month
Period Ending
104,000 20.5
4,500 18.8
4,500 (2.5)
5,300 (2.6)
3,600
4.8
September 30,
2022
Annual
205,000 19.1
7,000
6,500 97.5
8,000 95.9
5,500 217.6(Note) Revision of forecast of consolidated business results announced during the latest quarter: No

-2-

58.66
89.62

Notes(1)

Changes in significant subsidiaries in the consolidated cumulative first quarter of the current fiscal year (i.e.
changes in specified subsidiaries (tokutei kogaisha) which involve change in scope of consolidation): None

(2)

Changes in accounting principles and/or accounting estimates:(i) Changes in accounting principles required by IFRS: None(ii) Changes in accounting principles other than (i) above: None(iii) Changes in accounting estimates: None(3)

Number of Issued Shares (Common Stock)
First Quarter ended
June 30, 2022
(i)
(ii)
(iii)

Number of issued shares (including
treasury stock) as of the end of:
Number of shares held as treasury
stock as of the end of:
Average number of shares duringconsolidated first quarter (firstquarter ended June 30):

Fiscal Year ended
March 31, 2022

64,500,000 shares

65,589,042 shares

3,534,182 shares

4,130,773 shares

61,372,313 shares

62,424,862 shares*These quarterly financial statements are exempt from the review procedures.
*Cautionary Statement regarding Forecast of Business Results(Implementation of the International Financial Reporting Standards (“IFRS”))
Our group has implemented IFRS starting from the current consolidated fiscal year. The financial figures for thecorresponding period of the previous fiscal year and the previous fiscal year are also presented in accordance with IFRS.
For differences between IFRS and U.S. GAAP in the financial figures, please see “2. Condensed Quarterly Consolidated
Financial Statements and Accompanying Notes – (5) Notes to Condensed Quarterly Consolidated Financial Statements(First-time adoption)” on page 18 of the attached materials.
(Cautionary note on forward-looking statements)
The forecast of business results is based on reasonable information we obtained as of the date hereof and, due to various
risks, uncertainties and other factors arising in the future, actual results in the future may differ largely from the estimates
set out in this document. For notes on conditions used for the forecast of business results and cautionary statements
regarding forecast of business results, please see “1. Qualitative Information regarding Consolidated Performance during
the First Quarter – (3) Qualitative Information regarding Forecast of Consolidated Business Results” on page 9 of theattached materials.

-3-

Table of Contents for Attached Materials
1.

Qualitative Information regarding Consolidated Performance during the First Quarter ---------------------- 5(1)

Qualitative Information regarding Consolidated Business Results ---------------------------------------------- 5(2)

Qualitative Information regarding Consolidated Financial Condition ------------------------------------------ 9(3)

Qualitative Information regarding Forecast of Consolidated Business Results ------------------------------- 92.

Condensed Quarterly Consolidated Financial Statements and Accompanying Notes ------------------------ 10(1)

Condensed Quarterly Statement of Financial Position ----------------------------------------------------------- 10(2)

Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated
Statement of Comprehensive Income ------------------------------------------------------------------------------ 12(3)

Condensed Quarterly Consolidated Statement of Changes in Equity ------------------------------------------ 14(4)

Condensed Quarterly Consolidated Statement of Cash Flows -------------------------------------------------- 15(5)

Notes to Condensed Quarterly Consolidated Financial Statements -------------------------------------------- 16(Notes on Going Concern) ------------------------------------------------------------------------------------------- 16(Segment Information) ----------------------------------------------------------------------------------------------- 16(First-time Adoption) ------------------------------------------------------------------------------------------------- 18

-4-

1.

Qualitative Information regarding Consolidated Performance during the First Quarter(1)

Qualitative Information regarding Consolidated Business Results(i)Performance Overview of the Three Months ended June 30, 2022
(Millions of Yen)

Revenue
Cost of sales
Sales profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance expense
Share of profit (loss) of investments accounted forusing equity method
Profit before income taxes and equity in net profit ofaffiliated companies
Net profit attributable to owners of parent

Previous Consolidated
Cumulative First
Quarter(From April 1, 2021 toJune 30, 2021)
Amount42,453
17,59424,85922,897
596
102
2,456
672
111
(115)

Current Consolidated
Cumulative First
Quarter(From April 1, 2022 toJune 30, 2022)
Amount49,027
20,346
28,681
26,303
608
517
2,469
986
77
202

Increased/(Decreased) fromprevious consolidated
cumulative
first quarter
Amount+6,574+2,752+3,822+3,406
+12
+415
+13
+314
(34)
+317

%
+15.5
+15.6
+15.4
+14.9
+2.0
+406.9+0.5+46.7(30.6)
-

2,902

3,580

+678

+23.4

1,627

2,404

+777

+47.8

(Our group voluntarily implements the International Financial Reporting Standards (“IFRS”) starting from the
beginning of current cumulative first quarter, and the results for the previous cumulative first quarter have been
reclassified to conform to IFRS.)
During the current cumulative first quarter (April 1, 2022 – June 30, 2022), our group’s domestic businessenvironment continued to remain challenging as the number of customers visiting our retail stores only had a weak
bounce back, despite signs of recovery seen in opportunities to go out due to the progress in vaccination and relaxed
travel restrictions related to the coronavirus pandemic (“COVID-19”). While our business in Europe maintained its
strong sales, our business environment in the United States remained sluggish due to weaker consumer confidence asa result of various factors including rising inflation and accelerated monetary tightening. In addition, our business in
China was negatively affected by the impact of activity restrictions in response to another wave of the spread of
COVID-19.
Under the “VISION 2030”, our medium- to long-term strategy framework which we announced in June 2022,
our group is moving forward with our initiatives to address increasingly complex and diverse social issues as anopportunity for future growth, and to enhance our corporate value by promoting “sustainable management”, amanagement approach that balances resolving social issues on one hand and sustainable growth on the other handthrough our business activities. In addition, our new mid-term business plan for the next three years, which starts inthe current fiscal year, is designed to lay the foundation to realize our new vision formulated under “VISION 2030”,
which is “to evolve and grow as “Wacoal Group of the World” by providing both physical and emotional beauty andrichness to individuals through high sensitivity and premium quality”, and to promote initiatives for transforming
into a highly profitable company capable of sustainable growth. In our domestic business, we will continue
promoting our unique CX strategy including the utilization of our customer database and merger between online andoffline activities to improve value of our customer experience, and strengthening our efforts to improve profitability,
aiming “to transform ourselves into a resilient corporate structure”. In our overseas business, we will seek further
expansion by expanding our e-commerce business and entering into the emerging markets, in addition to expanding
solid sales growth in the existing areas where we conduct our business. On the financial strategies side, we will work
to improve our return on equity by improving profitability and capital efficiency while conducting active investments
for growth.

-5-As a result of the above, for the current cumulative first quarter, consolidated revenue was 49.03 billion yen(an increase of 15.5% as compared to the corresponding period of the previous fiscal year), consolidated operating
profit was 2.47 billion yen (an increase of 0.5% as compared to the corresponding period of the previous fiscal year),consolidated profit before income taxes and equity in net profit of affiliated companies were 3.58 billion yen (anincrease of 23.4% as compared to the corresponding period of the previous fiscal year), and consolidated net profit
attributable to owners of parent was 2.40 billion yen (an increase of 47.8% as compared to the corresponding periodof the previous fiscal year). The key exchange rates used for the current consolidated first quarter (previous firstquarter) were: 129.57 yen (109.49 yen) to the U.S. dollar; 162.96 yen (153.20 yen) to the Sterling pound; and 19.58
yen (16.95 yen) to the Chinese yuan.
(ii)

Business Overview of Our Operating Segments(Millions of Yen)
Previous Cumulative
First Quarter(from April 1, 2021 toJune 30, 2021)
AmountTotal Revenue
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other

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

a.

42,453
20,665
16,226
2,948
2,614

Current Cumulative
First Quarter(from April 1, 2022 toJune 30, 2022)

Distribution
Ratio (%)
100.0
48.7
38.2
6.9
6.2

Amount49,027
24,49518,192
2,952
3,388

Distribution
Ratio (%)
100.0
50.0
37.1
6.0
6.9

Increased/(Decreased) fromprevious cumulative
first quarter
Amount%+6,574+3,830+1,966
+4
+774

+15.5
+18.5
+12.1
+0.1
+29.6

Previous Cumulative
First Quarter(from April 1, 2021 toJune 30, 2021)

Current Cumulative
First Quarter(from April 1, 2022 toJune 30, 2022)

Increased/(Decreased) fromprevious cumulative
first quarter

Amount% to Sales

Amount% to Sales

Amount

%

5.8
0.3
12.7
17.1
-

2,469
810
1,367
384
(92)

5.0
3.3
7.5
13.0
-

+13
+744
(691)
(119)
+79

+0.5
(33.6)(23.7)
-

2,456
66
2,058
503
(171)

Wacoal Business (Domestic)In our “Wacoal Business (Domestic)” segment, we promoted our unique CX strategy to improve value of ourcustomer experience, and continue to make efforts on cost structure reform, in order to achieve the core strategy
aiming “to transform ourselves into a resilient corporate structure” under our mid-term business plan.
During the current cumulative first quarter, while the progress in vaccinations and relaxations of travel
restrictions related to COVID-19 boosted opportunities to go out socially, a recovery in sales remained gradual as aresult of the number of customers visiting our retail stores remaining low. Sales from our e-commerce website“Wacoal Web Store” fell below the sales level for the corresponding period of the previous fiscal year due to lower
purchase rate, although the number of customers visiting our website increased as a result of enhancing functions of
our official mobile application “WACOAL CARNET” and strengthening sales promotion measures. While thepromotion of CX strategies has led to steady growth in purchases by member customers both online and offline,
acquiring new customers continued to be a struggle. In addition, even after the resumption of operations at ourfactory in Vietnam, there were delays in the normalization of the production system. This resulted in delays in thedelivery of certain products under our core brands, which caused a loss of sales opportunities.
As a result of the above, revenue attributable to our “Wacoal Business (Domestic)” segment was 24.50
billion yen (an increase of 18.5% as compared to such sales for the corresponding period of the previous fiscal year).
Operating profit was 0.81 billion yen (0.07 billion yen of operating profit for the corresponding period of the previous
fiscal year) due to the reduction of fixed costs as a part of profit structure reform, in addition to the favorable effect ofincreased revenue. Starting in the current fiscal year, we have changed the presentation of net sales from Wacoal
Corp. related to transactions with department stores to be based on storefront prices, but we have not made retroactive-6-

revisions. This change in presentation has no impact on operating profit because this change resulted in increases inboth revenue and selling, general and administrative expenses of the same amount (1.4 billion yen).
b.

Wacoal Business (Overseas)

In order to “accelerate global growth” which is one of our core strategies under the mid-term business planwith respect to our “Wacoal Business (Overseas)” segment, we continue to make efforts to acquire new customers bystrengthening digital marketing and to convert existing customers to loyal customers by utilizing data andstrengthening CRM.
Sales from Wacoal Europe Ltd. significantly increased as a result of strong sales from innerwear andswimwear products supported by the rising consumer confidence in the United Kingdom and Europe. Sales from
Wacoal International Corp. (U.S.) were weak due to the absence of the sharp recovery from the impact of COVID-19
seen during the corresponding period of the previous fiscal year, as well as a decline in consumer confidence
resulting from concerns for uncertain outlooks. Sales from Wacoal America, Inc. on a local currency basis decreased
due to the impact of our major clients’ restraint of procurement, as well as lower sales from our e-commerce website
and third-party e-commerce websites than the sales for the corresponding period of previous fiscal year. In addition,
sales from Intimates Online, Inc., which distributes the “LIVELY” brand significantly decreased as our efforts toreassess media mix to attract new customers failed to produce results. Sales from Wacoal China Co., Ltd.
significantly decreased due to the impact of restrictions on activities following the spread of COVID-19.
In addition to the above-described factors and the impact of depreciation of the Japanese yen against key
currencies, sales revenues attributable to our “Wacoal Business (Overseas)” segment on a Japanese yen basis were
18.19 billion yen (an increase of 12.1% as compared to such sales for the corresponding period of the previous fiscal
year). Operating profit was 1.37 billion yen (a decrease of 33.6% as compared to such operating profit for thecorresponding period of the previous fiscal year) due to the negative impact of operating loss recorded at Wacoal
China and Intimates Online.
c.

Peach John BusinessIn our Peach John Business, we aim to achieve a high profit level by promoting product development that
captures consumer needs and by developing effective marketing strategies.
During the current cumulative first quarter, sales from our directly-managed stores expanded due to theabsence of negative impact of the closings of physical stores following the spread of COVID-19 seen during theprevious fiscal year, as well as our marketing measures which were attributable to an increase in the number ofcustomers visiting physical stores. On the other hand, the number of customers visiting our e-commerce website andpurchase rate were both low due to our unsuccessful marketing measures.
As a result of the above, revenue and operating profit attributable to our “Peach John Business” segment was
2.95 billion yen (an increase of 0.1% as compared to such sales for the corresponding period of the previous fiscal
year) and 0.38 billion yen (a decrease of 23.7% as compared to such operating profit for the corresponding period of
the previous fiscal year), respectively. Although profits decreased from the corresponding period of the previous
fiscal year due to an increase in sales promotion expenses, we maintained a high level of profits.

-7-

d.

Other

In our “Other” business segment, we are building a system that can continue to steadily generate profits, inorder to achieve the core strategy aiming “to transform ourselves into a resilient corporate structure” under our
mid-term business plan.
During the current cumulative first quarter, while revenue from Lecien Corporation decreased due to weaksales of our private products sold by major apparel supply chain companies, revenue increased due to recovery seenin Nanasai Co., Ltd. and Ai Co., Ltd. as a result of the recovery from the impact of COVID-19.
As a result of the above, revenue attributable to our “Other” business segment was 3.39 billion yen (anincrease of 29.6% as compared to such revenue for the corresponding period of the previous fiscal year), while werecorded an operating loss of 0.09 billion yen (operating loss of 0.17 billion yen for the corresponding period of theprevious fiscal year). Although we recorded an operating loss due to expenses incurred in connection with theliquidation of a subsidiary of Lecien Corporation, operating loss decreased, attributable to increased sales and an
improvement in profit structure resulting from a progress in reassessment of operations by each business entity.
(Reference) Revenue and Operating Profit/ (Loss) of Major Subsidiaries(Millions of Yen)

Revenue

Previous Cumulative
First Quarter(from April 1, 2021 toJune 30, 2021)
AmountWacoal Corp.
Wacoal International Corp. (U.S)
Wacoal Europe Ltd.
Wacoal China Co., Ltd.
Peach John Co., Ltd.
Lecien Corporation
Nanasai Co., Ltd.

18,128
7,435
4,037
3,303
2,948
924
1,184

Current Cumulative
First Quarter(from April 1, 2022 toJune 30, 2022)

Distribution
Ratio (%)
42.7
17.5
9.5
7.8
6.9
2.2
2.8

Amount23,127
8,154
5,234
2,394
2,952
910
1,573

Distribution
Ratio (%)
47.2
16.6
10.7
4.9
6.0
1.9
3.2

Increased/(Decreased) fromprevious cumulative
first quarter
Amount%+4,999+719+1,197
(909)
+4
(14)
+389

+27.6
+9.7
+29.7
(27.5)
+0.1
(1.5)
+32.9

*Revenue from external customers only
(Millions of Yen)

Operating Profit/(Loss)

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

Previous Cumulative
First Quarter(from April 1, 2021 toJune 30, 2021)

Current Cumulative
First Quarter(from April 1, 2022 toJune 30, 2022)

Increased/(Decreased) fromprevious cumulative
first quarter

Amount% to Sales

Amount% to Sales

Amount

%

0.2
14.8
13.6
3.2
17.1
-

1,027
503
657
(362)
384
(183)
9

4.4
6.2
12.6
13.0
0.6

+997
(599)
+107
(468)
(119)
(146)
+66

(54.4)+19.5(23.7)
-

30
1,102
550
106
503
(37)
(57)

-8-

(2)

Qualitative Information regarding Consolidated Financial Condition(i)

Assets, Liabilities and Total Shareholders’ Equity

Our total assets as of the end of the current consolidated first quarter were 305,330 million yen, an increase of
6,153 million yen from the end of the previous fiscal year, mainly due to an increase in goodwill attributable to theincreases in inventories and effect of the depreciation of the Japanese yen.
Our total liabilities were 79,158 million yen, an increase of 849 million yen from the end of the previous
fiscal year, mainly due to an increase in other current liabilities.
Equity attributable to owners of parent was 223,239 million yen, an increase of 5,249 million yen from theend of the previous fiscal year, mainly due to an increase in exchange differences on translation of foreign operations
due to the effect of the depreciation of the Japanese yen.
As a result of the above, ratio of equity attributable to owners of parent as of the end of the current
consolidated first quarter was 73.1%, an increase of 0.2% from the end of the previous fiscal year.
(ii)

Cash Flows

Cash and cash equivalents as of the end of the consolidated first quarter of the current fiscal year were 35,739
million yen, a decrease of 1,746 million yen from the end of the previous fiscal year.
(Cash Flow Provided by Operating Activities)
Cash flow provided by operating activities was 2,837 million yen, an increase of 2,029 million yen ascompared to the corresponding period of the previous fiscal year, after adjustments for changes in assets andliabilities to our profit of 2,467 million yen plus adjustments for depreciation and amortization expenses and income
taxes payable.
(Cash Flow Used in Investing Activities)
Cash flow used in investing activities was 1,027 million yen, a decrease of 243 million yen as compared tothe corresponding period of the previous fiscal year, due to purchase of property, plant and equipment and intangible
assets.
(Cash Flow Used in Financing Activities)
Cash flow used in financing activities was 4,491 million yen, a decrease of 19,053 million yen as comparedto the corresponding period of the previous fiscal year, due to payments made for dividends and payments forpurchase of treasury stock.
(3)

Qualitative Information regarding Forecast of Consolidated Business Results
We have not revised our forecast of consolidated business results for the six-month period ending September

30, 2022 and the fiscal year ending March 31, 2023 since we announced such forecast on May 13, 2022.

-9-

2.

Condensed Quarterly Consolidated Financial Statements and Accompanying Notes(1)

Condensed Quarterly Statement of Financial Position(Millions of Yen)
Accounts

Date of Transition(April 1, 2021)

AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets:
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted for using equity method
Other financial assets
Retirement benefit assets
Deferred income taxes
Other non-current assets
Total non-current assets
Total assets- 10 -

Previous
Current Consolidated
Consolidated
First Quarter
Fiscal YearasofJune 30, 2022
as of March 31, 2022

63,987
18,6572,238
43,402
7,067
135,351

37,48520,706
1,795
45,926
2,923
108,835

35,73921,9772,060
48,311
3,564
111,651

44,973
12,967
21,16915,343
3,126
17,89856,334
9,434
1,641
979

48,602
13,986
22,945
15,666
2,725
18,23952,24913,2801,680
970

49,355
13,64024,762
15,542
2,723
19,18652,331
13,276
1,829
1,035

183,864
319,215

190,342
299,177

193,679
305,330

(Millions of Yen)
Accounts

Date of Transition(April 1, 2021)

Liabilities and Equity
Liabilities
Current liabilities:
Borrowings
Lease liabilities
Trade and other payables
Other financial liabilities
Income taxes payable
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Deferred income taxes
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityCommon stock
Additional paid-in capital
Retained earnings
Other components of equity
Treasury stock, at cost
Total equity attributable to owners of parent
Noncontrolling interests
Total equity
Total liabilities and equity- 11 -

Previous
Current Consolidated
Consolidated
First Quarter
Fiscal Year
as of March 31, 2022 as of June 30, 2022

40,707
3,657
15,0582,365879
14,132
76,798

10,227
5,197
16,7381,661
1,363
14,08049,266

10,917
4,971
15,982
2,052
898
15,50050,320

1,498
8,676
1,639
2,089
12,065
1,516

1,626
8,254
820
3,466
13,607
1,270

1,783
8,161
－
3,462
14,194
1,238

27,483
104,281

29,04378,30928,83879,15813,26029,120156,143
22,381(8,876)
212,028
2,906

13,26029,077
158,940
27,571(10,858)
217,990
2,878

13,26029,094
156,592
33,335(9,042)
223,2392,933

214,934

220,868

226,172

319,215

299,177

305,330(2)Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated
Statement of Comprehensive Income(Condensed Quarterly Consolidated Statement of Profit or Loss)(Millions of Yen)
Accounts

Previous Consolidated
Cumulative First Quarter(From April 1, 2021
to June 30, 2021)

Current Consolidated
Cumulative First Quarter(From April 1, 2022
to June 30, 2022)

42,453(17,594)(22,897)
596
(102)
2,456
672
(111)

%
100.0
(41.5)(53.9)
1.4
(0.2)
5.8
1.6
(0.3)

49,027(20,346)(26,303)
608
(517)
2,469
986
(77)

%
100.0
(41.5)(53.6)
1.2
(1.1)
5.0
2.0
(0.1)

(115)

(0.3)

202

0.4

2,902
(1,269)
1,633

6.8
(3.0)

3,580
(1,113)

7.3
(2.3)

3.8

2,467

5.0

Profit attributable to:
Owners of parent
Noncontrolling interests
Profit

1,627
6
1,633

3.8
0.0
3.8

2,404
63
2,467

4.9
0.1
5.0

Earnings per share:
Basic earnings per share (yen)Diluted earnings per share (yen)

26.06
25.95

Revenue
Cost of sales
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Share of (loss) profit of investments accounted
for using equity method
Profit before tax
Income tax expense
Profit- 12 -

39.17
39.01

(Condensed Quarterly Consolidated Statement of Comprehensive Income)(Millions of Yen)
Current Consolidated
Cumulative First Quarter(From April 1, 2022
to June 30, 2022)

Previous Consolidated
Cumulative First Quarter(From April 1, 2021
to June 30, 2021)

Accounts
ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value throughother comprehensive income
Remeasurement of defined benefit plans
Share of other comprehensive (loss) income ofinvestments accounted for using equity method
Total
Items that may be reclassified subsequently to profit
or loss
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity method
Total
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Noncontrolling interests
Comprehensive income- 13 -

1,633

2,467

(1,166)

58

－

(45)

(8)

4

(1,174)

17

325

5,354

(152)

435

173

5,789
5,806

(1,001)
632

8,273

642
(10)

8,123
150

632

8,273

(3)

Condensed Quarterly Consolidated Statement of Changes in Equity
Previous Consolidated Cumulative First Quarter (From April 1, 2021 to June 30, 2021)(Millions of Yen)
Equity attributable to owners of parent
Item
Share capital

Balance at April 1, 2021

13,260Capitalsurplus29,120Retainedearnings

Other
componentsof equity

Treasurystock

156,143

22,381(8,876)

ProfitTotal comprehensive income

1,627

－

(985)

Repurchase of treasury stock
Share-based payment transactions(11)

Dividends(3)

214,934

1,627

6

1,633

(985)

(16)

(1,001)

－

642

(10)

632

(0)

(0)

(0)

24

10

10

(1,248)(1,248)(82)(1,330)－55

55Equity transactions with noncontrollinginterests
Transfer from other components of equity toretained earnings
Total transactions with owners
Balance at June 30, 2021

(61)

61

Total equity

2,906

(985)
－

Total

212,028

1,627

Other comprehensive income

Noncontrollinginterests

－

－

－

(11)

(1,312)

61

24(1,238)(27)(1,265)

13,26029,109156,458

21,457(8,852)

211,432

2,869

214,301

Current Consolidated Cumulative First Quarter (From April 1, 2022 to June 30, 2022)(Millions of Yen)
Equity attributable to owners of parent
Item
Share capital

Balance at April 1, 2022

13,260Capitalsurplus29,077

Treasury
stock

Total

158,940

27,571(10,858)

217,990

2,878

220,868

2,404

63

2,467

5,719

87

5,806

－

8,123

150

8,273

(1,047)(1,047)(1,047)

2,863

－

－

17

17

2,404

Other comprehensive income

5,719
－

2,404

－

5,719

Repurchase of treasury stock
Disposal of treasury stock(2,863)

Share-based payment transactions

17

Dividends(1,844)

Transfer from other components of equity toretained earnings
Total transactions with owners
Balance at June 30, 2022

Total equity

Other
componentsof equity

ProfitTotal comprehensive income

Noncontrollinginterests

Retainedearnings(1,844)

(45)

45

(95)

－

(1,939)－－17(4,752)45

1,816(2,874)(95)(2,969)13,26029,094

156,592

33,335(9,042)

223,2392,933

226,172- 14 -

(4)Condensed Quarterly Consolidated Statement of Cash Flows

Accounts(Millions of Yen)
Current Consolidated
Cumulative First Quarter(From April 1, 2022
to June 30, 2022)

Previous Consolidated
Cumulative First Quarter(From April 1, 2021
to June 30, 2021)

Operating activities
ProfitDepreciation and amortization
Finance income
Finance costs
Share of loss (profit) loss of investments accounted
for using equity method
Income tax expense
Loss (gain) on sale of fixed assets
Increase in trade and other receivables
Increase in inventories
Increase in other assets
Decrease increase in trade and other payables
Decrease in retirement benefit asset or liability
Increase in other liabilities
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Investing activities
Proceeds from withdrawal of time deposits
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of other financial assets
Proceeds from sale or amortization of other financial
assetsOther
Net cash used in investing activities
Financing activities
Net (decrease) increase in short-term bank loans withoriginal maturities of three months or lessRepayments of long-term borrowings
Repayments of lease obligations
Capital contribution from noncontrolling interests
Payments for purchase of treasury stock
Dividends paid to owners of parent
Dividends paid to noncontrolling interests
Contingent consideration payment
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -

1,633
2,395
(672)
111

2,467
2,761
(986)
77

115

(202)

1,269
(142)
(903)
(1,094)
(415)
(835)
(637)
92
(294)
623
10
673
(67)
(431)
808

1,113
4
(472)
(698)
(302)
(1,707)
(707)
1,327
(201)
2,474
12
1,157
(55)
(751)
2,837

361
(132)
(1,134)
244
(824)
(1)

71
(32)
(541)
216
(724)
(1)

198

－

18
(1,270)(16)(1,027)(20,000)

648

(12)
(993)
55
(0)
(1,248)(82)(1,264)(23,544)－(1,469)－(1,047)(1,844)(95)(684)(4,491)

77935(23,929)
63,98740,058(1,746)37,48535,739(5)Notes to Condensed Quarterly Consolidated Financial Statements(Notes on Going Concern)
Not applicable.
(Segment Information)(i)

Reportable Segment Information

Previous Consolidated Cumulative First Quarter (From April 1, 2021 to June 30, 2021)(Millions of Yen)
Reportable Segment
Other(Note) 1

Adjustments

Consolidated

39,8392,614－

42,453

79

2,973

911

(3,884)－

18,9183,027

42,812

3,525(3,884)42,453

2,058

503

2,627

(171)

－

2,456

WacoalBusiness(Domestic)

WacoalBusiness(Overseas)

Peach John
Business

20,665

16,226

2,948

202

2,692

Total

20,867

Segment profit (loss)(Note) 2

66

Total

Revenue
External customers
Intersegment

Current Consolidated Cumulative First Quarter (From April 1, 2022 to June 30, 2022)(Millions of Yen)
Reportable Segment
Other(Note) 1

Adjustments

Consolidated

45,6393,388－

49,027

82

4,017

845

(4,862)－

21,905

3,034

49,656

4,233(4,862)49,027

1,367

384

2,561

(92)

－

2,469

WacoalBusiness(Domestic)

WacoalBusiness(Overseas)

Peach John
Business

24,49518,192

2,952

222

3,713

Total

24,717

Segment profit (loss)(Note) 2

810

Total

Revenue
External customers
Intersegment(Note)

1.
2.
3.

The “Other” category includes Lecien business, Nanasai business, and other business segments which are not included in theoperating segment.
The sum of the segment profit (loss) agrees to the operating profit on the condensed quarterly consolidated statement of profit orloss. For a reconciliation from operating profit (loss) to profit before income taxes and equity in net profit of affiliatedcompanies, please see the condensed quarterly consolidated statement of profit or loss.
The Company accounts for intersegment sales and transfers at cost plus an interest.

- 16 -

(ii)Segment Information by Region
Revenue – external customers(Millions of Yen)
Previous Consolidated Cumulative First Quarter Current Consolidated Cumulative First Quarter(From April 1, 2021 to June 30, 2021)(From April 1, 2022 to June 30, 2022)

Japan

25,81430,523

Asia and Oceania

5,354

5,546

Americas and Europe

11,285

12,95842,45349,027

Total(Note)

1.
2.

Countries or areas are classified according to locations of consolidated companies.
Of “Americas and Europe” category, revenue in the United States for the previous consolidated cumulative first quarter andcurrent consolidated cumulative first quarter were 8,903 million yen and 9,508 million yen, respectively.

- 17 -

(First-time Adoption)
Starting from the current consolidated first quarter, our group began preparing our condensed quarterly
consolidated financial statements in accordance with IFRS. Previously, our group prepared the financial consolidated
statements for the fiscal year ended March 31, 2022 in accordance with U.S. GAAP. The date of transition to IFRS is April
1, 2021.
(1）IFRS 1 – Exemptions
In principle, IFRS requires companies that adopt IFRS for the first time (a “first-time adopter”) to apply IFRS
standards retrospectively. IFRS 1 First-time Adoption of International Financial Reporting Standards (“IFRS 1”),
however, outlines certain mandatory and discretionary exemptions from retrospective application of IFRS standards. The
effect of the application of these exceptions and exemptions is adjusted in retained earnings and/or other components ofequity at the date of transition to IFRS. The exemptions adopted by our group upon transition from U.S. GAAP to IFRS
are as follows:- Business combinations
A first-time adopter may choose not to apply IFRS 3 Business Combinations (“IFRS 3”) retrospectively tobusiness combinations for which the acquisition date occurs prior to the date of transition to IFRS. Our group has appliedsuch exemption and chosen not to apply retrospectively to business combinations that occurred prior to the date oftransition. As a result, the amount of goodwill arising from business combinations prior to the date of transition is based on
the carrying amount as of the transition date in accordance with U.S. GAAP.
Goodwill is tested for impairment as of the transition date, regardless of whether there is any indication of
impairment.
- Deemed cost
IFRS 1 permits the use of fair value as of the date of transition to IFRS for property, plant and equipment,
investment property and intangible assets as deemed cost as of that date. Our group uses fair value as of the date oftransition for certain intangible assets as deemed cost under IFRS.
- Exchange differences on translation of foreign operations
IFRS 1 permits a first-time adopter to choose to deem the cumulative amount of the exchange differences ontranslation of foreign operations to be zero as of the date of transition to IFRS. Our group has chosen to deem thecumulative amount of the exchange differences on translation of foreign operations to be zero as of the date of transition to
IFRS.
- Leases
Under IFRS 1, a first-time adopter may determine whether an arrangement contains a lease as of the date oftransition to IFRS based on the facts and circumstances at the date of transition. It also permits to measure the leaseliability at the present value of the remaining lease payments discounted at the lessee’s additional borrowing rate as of thedate of transition, and the right-of use asset at the same amount as the lease liability. Leases ending within 12 months fromthe date of transition and leases with small underlying assets may be recognized as expenses.
Our group has applied such exemption, and recognized and measured leases.
- Designation of previously recognized financial instruments
IFRS 1 permits classification in IFRS 9 Financial Instruments (“IFRS 9”) to be based on facts and circumstances
as of the date of transition, rather than on facts and circumstances existing at the time of recognition. In addition, it ispermitted to designate equity financial assets as financial assets at fair value through other comprehensive income based on
facts and circumstances existing as of the date of transition.
Our group has chosen the classification in IFRS 9 based on facts and circumstances existing as of the date oftransition, and has designated certain equity financial assets as financial assets at fair value through other comprehensive
income based on facts and circumstances existing as of the date of transition.
- Fair value measurement of financial instruments at initial recognition
Our group has elected to apply prospectively the provisions of IFRS 9 on fair value measurement and recognitionof gains or losses on initial recognition of financial assets and liabilities.

- 18 -

(2）IFRS 1 – Mandatory Exceptions
IFRS 1 prohibits retrospective application regarding “estimates”, “derecognition of financial assets and financial
liabilities”, “hedge accounting”, “noncontrolling interests” and “classification and measurement of financial instruments”.
Our group has applied prospectively these items from the date of transition.
(3）Reconciliations
The reconciliations required to be disclosed under IFRS upon first-time adoption are as follows.
The reconciliations include items which may not impact the retained earnings and comprehensive income under“reclassification”, and items which may impact the retained earnings and comprehensive income under “recognition andmeasurement differences”.

- 19 -

Reconciliation of Equity as at the date of transition to IFRS (April 1, 2021)(Millions of Yen)
Presentation
under U.S. GAAP
(Assets)
Current Assets
Cash and cash equivalents
Time deposits
Marketable securities
Notes and accounts
receivable
Allowance for doubtfulreceivables
Inventories
Return assets
Other current assets
Total current assets
Property, Plant andEquipment
Land
Buildings and building
improvements
Machinery and equipment
Construction in progress
Accumulated depreciation
Net property, plant andequipment
Other assets
Operating leases
right-of-use assets
Investments
Goodwill
Other intangible assets
Investments in affiliatedcompanies
Prepaid pension expense
Deferred income taxes
Other
Total other assets
Total Assets

U.S.
GAAP

Recognition
andReclassification
measurement
differences

IFRS

Note

63,5571,443
253－(1,443)
(253)

430
－
－

63,987－－

17,571490

596

18,657

(346)

346

－

－

－
43,250600
7,794
134,122

2,213
2
(600)
(603)
152

25
150
－
(124)
1,077

2,238
43,402－
7,067
135,351

Presentation under IFRS
AssetsCurrent Assets
Cash and cash equivalents

Trade and other receivables

A

Other financial assets
Inventories
Other current assets
Total current assets
Non-current Assets

20,569－－－72,978－－－19,356
1,264
114,167(64,409)

－
－
－
－

－
－
－
－

－
－
－
－

49,758(4,390)(395)

44,973

12,729870(632)

12,967 D, E, j

51,603
21,16915,220－(51,603)
－
394
3,126

－
－
(271)
－

－
21,16915,343
3,126

C, c
B

21,207－(3,309)17,898

d

－
9,533
1,649
5,771
138,881－322,761

56,374－－(4,900)
－
－
23

(40)
(99)
(8)
108
－
－
(3,569)56,334
9,434
1,641
979
－
183,864
319,215- 20 -

bk

Property, plant andequipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted forusing equity method
Other financial assets
Retirement benefit assets
Deferred income taxes
Other non-current assets
Total non-current assets
Total Assets

(Millions of Yen)
Presentation
under U.S. GAAP

(Liabilities)
Current Liabilities
Short-term bank loans
Notes and accounts payable
Trade notes payable
Trade accounts payable
Other payables
Accrued payroll andbonuses
Income taxes payable
Refund liabilities
Short-term operating leaseliabilities
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt

Liabilities for termination
and retirement benefit
Deferred income taxes
Long-term operating leaseliabilities
Contingent consideration(long-term)
Other long-term liabilities
Total long-term liabilities
Total liabilities(Equity)Common stock
Additional paid-in capital
Retained earnings
Accumulated othercomprehensive income(loss)
Foreign currencytranslation adjustments
Pension liability
adjustments
Treasury stock, at cost
Total Wacoal Holdings
Corp. shareholders’ equity
Noncontrolling interests
Total equity
Total liabilities and equity

U.S.
GAAP

Recognition
andReclassification
measurement
differences

IFRS

Note

Presentation under IFRS

D, jh

Liabilities and Equity
Liabilities
Current Liabilities
Borrowings
Lease liabilities
Trade and other payables

G

Other financial liabilities

40,672
－
－
712
8,734
6,610
－

35
4,411
14,330(712)(8,734)(6,610)
2,372

－
(754)
728
－
－
－
(7)

40,707
3,657
15,058
－
－
－
2,365

6,822

(6,822)

－

－

1,025
2,266

(134)
(2,266)

(12)
－

879
－

4,411

(4,411)

－

－

4,819
76,071

9,202
661

111
66

14,132
76,798

1,498
－
－

－
8,520
1,639

－
156
－

1,498
8,676
1,639

1,942

143

4

2,089

12,292－(227)

12,0658,520(8,520)

－

－

1,639

(1,639)

－

－

2,183
28,074104,145

(781)
(638)
23

114
47
113

1,516
27,483
104,281

13,26029,120181,346－－－－－(25,203)

13,26029,120156,143l－

762

21,61922,381

f, g

1,770

(1,770)－－(1,008)

1,008

－

－

(8,876)－－(8,876)215,612－(3,584)

212,028

3,004
218,616
322,761

－
－
23

(98)
(3,682)(3,569)2,906
214,934
319,215- 21 -

Income taxes payable

F, i

D, j
G

Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liabilitykDeferred income taxesiOther non-current liabilities
Total non-current liabilities
Total liabilities
EquityCommon stock
Additional paid-in capital
Retained earnings
Other components of equity

Treasury stock, at cost
Total equity attributable toowners of parent
Noncontrolling interests
Total equity
Total liabilities and equity

Reconciliation of Equity as at previous consolidated first quarter (June 30, 2021)(Millions of Yen)
Presentation
under U.S. GAAP
(Assets)
Current Assets
Cash and cash equivalents
Time deposits
Marketable securities
Notes and accounts
receivable
Allowance for doubtfulreceivables
Inventories
Return assets
Other current assets
Total current assets
Property, Plant andEquipment
Land
Buildings and building
improvements
Machinery and equipment
Construction in progress
Accumulated depreciation
Net property, plant andequipment
Other assets
Operating leases
right-of-use assets
Investments
Goodwill
Other intangible assets
Investments in affiliatedcompanies
Prepaid pension expense
Deferred income taxes
Other
Total other assets
Total Assets

U.S.
GAAP

Recognition
andReclassification
measurement
differences

IFRS

Note

39,304
1,358
254－(1,358)
(254)

754
－
－

40,058－－19,345404(74)

19,675

△266

266

－

－

－
44,602
586
8,735
113,918

2,061
－
(586)
(417)
116

(125)
(21)
－
(455)
79

1,936
44,581－
7,863
114,113

Presentation under IFRS
AssetsCurrent Assets
Cash and cash equivalents

Trade and other receivables

A

Other financial assets
Inventories
Other current assets
Total current assets
Non-current Assets

20,579－－－73,267－－－

19,614
1,942
115,402(65,338)

－
－
－
－

－
－
－
－

－
－
－
－

50,064(4,388)(470)

45,206

12,077851(86)

12,842 D, E, j

49,69021,212
15,192－(49,690)
－
409
3,126

－
－
(345)
－

－
21,212
15,256
3,126

C, c
B

21,833－(4,154)

17,679

d

－
9,750
1,740
5,779
137,273－
301,255

54,411－－(4,837)
－
－
(2)

(3)
(308)
30
132
－
－
(5,125)54,408
9,442
1,770
1,074
－
182,015
296,128- 22 -

bk

Property, plant andequipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted forusing equity method
Other financial assets
Retirement benefit assets
Deferred income taxes
Other non-current assets
Total non-current assets
Total Assets

(Millions of Yen)
Presentation
under U.S. GAAP

(Liabilities)
Current Liabilities
Short-term bank loans
Notes and accounts payable
Trade notes payable
Trade accounts payable
Other payables
Accrued payroll andbonuses
Income taxes payable
Refund liabilities
Short-term operating leaseliabilities
Contingent consideration(short-term)
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt

Liabilities for termination
and retirement benefit
Deferred income taxes
Long-term operating leaseliabilities
Contingent consideration(long-term)
Other long-term liabilities
Total long-term liabilities
Total liabilities(Equity)Common stock
Additional paid-in capital
Retained earnings
Accumulated othercomprehensive income(loss)
Foreign currencytranslation adjustments
Pension liability
adjustments
Treasury stock, at cost
Total Wacoal Holdings
Corp. shareholders’ equity
Noncontrolling interests
Total equity
Total liabilities and equity

U.S.
GAAP

Recognition
andReclassification
measurement
differences

IFRS

Note

Presentation under IFRS

D, jh

Liabilities and Equity
Liabilities
Current Liabilities
Borrowings
Lease liabilities
Trade and other payables

G

Other financial liabilities

20,677
－
－
983
8,932
4,155
－

23
4,141
14,070(983)(8,932)(4,155)
1,953

－
(237)
(116)
－
－
－
－

20,7003,904
13,954
－
－
－
1,953

5,633

(5,633)

－

－

1,082
2,002

－
(2,002)

(206)
－

876
－

4,141

(4,141)

－

－

885

(885)

－

－

6,734
55,224

7,200
656

175
(384)

14,10955,496

1,496
－
－

－
8,146
736

－
194
－

1,496
8,340
736

1,949

143

4

2,096

12,264－(107)

12,1578,146(8,146)

－

－

736

(736)

－

－

2,192
26,78382,007

(801)
(658)
(2)

115
206
(178)

1,506
26,331
81,827

13,26029,109180,567－－－－－(24,109)13,26029,109156,458

l

－

2,090

19,36721,457

f, g

3,086

(3,086)

－

－

(996)

996

－

－

(8,852)－－(8,852)

216,174－(4,742)

211,432

3,074
219,248
301,255

－
－
(2)

(205)
(4,947)(5,125)

2,869
214,301
296,128- 23 -

Income taxes payable

F, i

D, j
G

Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liabilitykDeferred income taxesiOther non-current liabilities
Total non-current liabilities
Total liabilities
EquityCommon stock
Additional paid-in capital
Retained earnings
Other components of equity

Treasury stock, at cost
Total equity attributable toowners of parent
Noncontrolling interests
Total equity
Total liabilities and equity

Reconciliation of Equity as at previous consolidated fiscal year (March 31, 2022)(Millions of Yen)
Presentation
under U.S. GAAP
(Assets)
Current Assets
Cash and cash equivalents
Time deposits
Notes and accounts
receivable
Allowance for doubtfulreceivables
Inventories
Return assets
Other current assets
Total current assets
Property, Plant andEquipment
Land
Buildings and building
improvements
Machinery and equipment
Construction in progress
Accumulated depreciation
Net property, plant andequipment
Other assets
Operating leases
right-of-use assets
Investments
Goodwill
Other intangible assets
Investments in affiliatedcompanies
Prepaid pension expense
Deferred income taxes
Other
Total other assets
Total Assets

U.S.
GAAP

Recognition
andReclassification
measurement
differences

IFRS

Note

37,982
1,387－(1,387)(497)－

37,485－

19,414876

416

20,706

(282)

282

－

－

－
45,268655
4,004
108,428

1,802
－
(655)
(800)
118

(7)
658
－
(281)
289

1,795
45,926－
2,923
108,835

Presentation under IFRS
AssetsCurrent Assets
Cash and cash equivalents
Trade and other receivables

A

Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets

20,358－－－77,641－－－

20,8291,289
120,117(67,156)

－
－
－
－

－
－
－
－

－
－
－
－

52,961(3,984)(375)

48,602b

Property, plant andequipment

12,356886

744

13,986

D, E, jRight-of-use assets

47,926
22,945
15,408－(47,926)
－
373
2,725

－
－
(115)
－

－
22,945
15,666
2,725

C, c
B

22,835－(4,596)

18,239d－
13,411
1,554
5,421
141,856－
303,245

52,250－－(4,442)
－
－
－

(1)
(131)
126
(9)
－
－
(4,068)52,24913,2801,680
970－
190,342
299,177- 24 -k

Goodwill
Intangible assets
Investment property
Investments accounted forusing equity method
Other financial assets
Retirement benefit assets
Deferred income taxes
Other non-current assets
Total non-current assets
Total Assets

(Millions of Yen)
Presentation
under U.S. GAAP
(Liabilities)
Current Liabilities
Short-term bank loans
Notes and accounts payable
Trade notes payable
Trade accounts payable
Other payables
Accrued payroll andbonuses
Income taxes payable
Refund liabilities
Short-term operating leaseliabilities
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt

Liabilities for termination
and retirement benefit
Deferred income taxes
Long-term operating leaseliabilities
Contingent consideration(long-term)
Other long-term liabilities
Total long-term liabilities
Total liabilities(Equity)Common stock
Additional paid-in capital
Retained earnings
Accumulated othercomprehensive income(loss)
Foreign currencytranslation adjustments
Pension liability
adjustments
Treasury stock, at cost
Total Wacoal Holdings
Corp. shareholders’ equity
Noncontrolling interests
Total equity
Total liabilities and equity

U.S.
GAAP

Recognition
andReclassification
measurement
differences

IFRS

Presentation under IFRS

D, jh

Liabilities and Equity
Liabilities
Current Liabilities
Borrowings
Lease liabilities
Trade and other payables

G

Other financial liabilities

10,227－－558
10,067
7,006
－

－
4,549
16,164(558)(10,067)(7,006)
1,661

－
648
574
－
－
－
－

6,319

(6,319)

－

－

1,408
1,991

(70)
(1,991)

25
－

1,363
－

4,549

(4,549)

－

－

5,178
47,303

8,883
697

19
1,266

14,08049,266

1,626
－
－

－
8,150
820

－
104
－

1,626
8,254
820

3,345

103

18

3,466

14,095－(488)

13,6078,150(8,150)

－

－

820

(820)

－

－

1,854
29,89077,193

(800)
(697)
－

216
(150)
1,116

1,270
29,04378,30913,26029,077
183,456－－－－－(24,516)

13,26029,077
158,940

l

－

8,070

19,501

27,571

f, g

7,714

(7,714)

－

－

356

(356)

－

－

(10,858)－－(10,858)

223,005－(5,015)217,990

3,047
226,052
303,245

－
－
－

(169)
(5,184)(4,068)2,878
220,868
299,177- 25 -

10,227
5,197
16,738
－
－
－
1,661

Note

Income taxes payable

F, i

D, j
G

Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liabilitykDeferred income taxesiOther non-current liabilities
Total non-current liabilities
Total liabilities
EquityCommon stock
Additional paid-in capital
Retained earnings
Other components of equity

Treasury stock, at cost
Total equity attributable toowners of parent
Noncontrolling interests
Total equity
Total liabilities and equity

Reconciliation of Statement of Profit or Loss and Statement of Comprehensive Income for the previous
consolidated cumulative first quarter (From April 1, 2021 to June 30, 2021)(Millions of Yen)
Presentation
under U.S. GAAPNet sales

Recognition
U.S.
andReclassification
GAAP
measurement
differences
42,305
3
145

IFRS

Note

42,453Presentation under IFRSRevenue

Operating expenses
Cost of sales
Selling, general andadministrative expenses(17,594)(16)

16(17,594)f, i(22,773)

(426)

302

(22,897)

f, i

－

595

1

596

H

Cost of sales
Selling, general andadministrative expenses
Other income

－

(84)

(18)

(102)

H

Other expenses

1,938

72

446

2,456

Interest income

10

(10)

－

－

Interest expense

(22)

22

－

－

Dividend income
Valuation loss onmarketable securities andinvestments – net
Other – net

593

(593)

－

－

(1,714)

36

1,678

－

305

(120)

(185)

－

－

659

13

672

H

Finance income

－

(66)

(45)

(111)

H

－

78

(193)

(115)

Finance costs
Share of profit (loss) ofinvestments accounted forusing equity method

1,110

78

1,714

2,902

(691)

－

(578)

(1,269)

419

－

－

－

78

(78)

－

－

497

－

1,136

1,633

Operating income

Operating profit

Other income (expenses)

Income before income taxes
and equity in net income ofaffiliated companies
Income taxes
Income before equity in net
income of affiliatedcompanies
Equity in net income ofaffiliated companies
Net income

Profit before tax
kIncome tax expense

ProfitProfit attributable to:

Net income attributable to
Wacoal Holdings Corp.
Net income attributable tononcontrolling interests

472

－

1,155

1,627

25

－

(19)

6

- 26 -

Owners of parent
Noncontrolling interests

(Millions of Yen)
Presentation
under U.S. GAAPNet income
Other comprehensive income(net of tax)

Pension liability
adjustments

Foreign currencytranslation adjustments

Total of othercomprehensive income
Comprehensive income

Recognition
U.S.
andReclassification
GAAP
measurement
differences
497
1,136
－

IFRS

Note

1,633

Presentation under IFRSProfitOther comprehensive income－－(1,166)(1,166)

a

12

－

(12)

－

f

－

－

(8)

(8)

1,388

(407)

(656)

325

－

407

(559)

(152)

1,400

－

(2,401)(1,001)

1,897－(1,265)632

Items that will not bereclassified to profit or loss
Financial assets
measured at fair value
through othercomprehensive income
Remeasurement ofdefined benefit plans
Share of othercomprehensive incomeof investments accounted
for using equity method
Items that may bereclassified to profit or loss
Exchange differences ontranslation of foreign
operations
Share of othercomprehensive incomeof investments accounted
for using equity method
Total other comprehensive
incomeComprehensive income
Comprehensive income
attributable to:Comprehensive income
attributable to Wacoal
Holdings Corp.
Comprehensive income
attributable to noncontrollinginterests

1,800

－

(1,158)642

Owners of parent

97

－

(107)

(10)

Noncontrolling interests- 27 -

Reconciliation of Statement of Profit or Loss and Statement of Comprehensive Income for the previous
consolidated fiscal year (From April 1, 2021 to March 31, 2022)(Millions of Yen)
Presentation
under U.S. GAAPNet sales

Recognition
U.S.
andReclassification
GAAP
measurement
differences
172,860
13
(801)

IFRS

Note

172,072

Presentation under IFRSRevenue

Operating expenses
Cost of sales
Selling, general andadministrative expenses
Gain on sales or disposal ofproperty, plant andequipment – net
Impairment charges on
goodwill and otherintangible assets(76,607)

(31)

390

(76,248)f, i(93,010)(756)(1,564)(95,330)

f, i

1,981

△1,981

－

－

(211)

211

－

－

－

3,760

(11)

3,749

H

Other income

－

(920)

(32)

(952)

H

Other expenses

5,013

296

(2,018)3,291Interest income

53

(53)

－

－

Interest expense

(62)

62

－

－

Dividend income
Valuation loss onmarketable securities andinvestments - net
Other – net

1,312(1,312)

－

－

(641)

(169)

810

－

1,571

(789)

(782)

－

－

1,887

43

1,930

H

Finance income

－

(55)

(177)

(232)

H

－

－

(1,485)(1,485)

d

－

792

(213)

579

Finance costs
Impairment charges ofinvestments accounted forusing equity method
Share of profit (loss) ofinvestments accounted forusing equity method

7,246

659

(3,822)

4,083(3,497)133

866(2,498)

3,749

－

－

－

792

(792)

－

－

4,541

－

(2,956)

1,585

Operating income

Cost of sales
Selling, general andadministrative expenses

Operating profit

Other income (expenses)

Income before income taxes
and equity in net income ofaffiliated companies
Income taxes
Income before equity in net
income of affiliatedcompanies
Equity in net income ofaffiliated companies
Net incomekProfitIncome tax expense

ProfitProfit attributable to:

Net income attributable to
Wacoal Holdings Corp.
Net loss attributable tononcontrolling interests

4,608

－

(2,876)

1,732

Owners of parent

(67)

－

(80)

(147)

Noncontrolling interests- 28 -

(Millions of Yen)
Presentation
under U.S. GAAPNet income
Other comprehensive income(net of tax)

Pension liability
adjustments

Foreign currencytranslation adjustments

Total of othercomprehensive income
Comprehensive income

Recognition
U.S.
andReclassification
GAAP
measurement
differences
4,541－(2,956)

IFRS

Note

1,585

Presentation under IFRSProfitOther comprehensive income

－

－

(538)

(538)

a

1,364

－

1,405

2,769

f

－

－

297

297

6,024

(325)

112

5,811

－

325

169

494

7,388

－

1,445

8,833

11,929－(1,511)

10,418Items that will not bereclassified to profit or loss
Financial assets
measured at fair value
through othercomprehensive income
Remeasurement ofdefined benefit plans
Share of othercomprehensive incomeof investments accounted
for using equity method
Items that may bereclassified subsequently to
profit or loss
Exchange differences ontranslation of foreign
operations
Share of othercomprehensive incomeof investments accounted
for using equity method
Total other comprehensive
incomeComprehensive income
Comprehensive income
attributable to:Comprehensive income
attributable to Wacoal
Holdings Corp.
Comprehensive income
attributable to noncontrollinginterests

11,916－(1,440)10,476

13

－

(71)

(58)

- 29 -

Owners of parent
Noncontrolling interests

Notes to the Reconciliations(i) Reclassification
A. Certain financial instruments included in “time deposits” and “marketable securities”, as well as “other current
assets” that were separately presented under U.S. GAAP have been reclassified and presented as “other financial
assets” under IFRS.
B. “Investment property”, which was included in “Property, plant and equipment” under U.S. GAAP, is presented
separately under IFRS.
C. “Painting”, which was included in “Property, plant and equipment” under U.S. GAAP, has been reclassified andpresented in “intangible assets” under IFRS as an asset with an indefinite useful life.
D. Items presented as “operating lease right-of-use assets”, “short-term operating lease liabilities” and “long-term
operating lease liabilities” under U.S. GAAP are presented as “right-of-use assets” and “lease liabilities” under current
liabilities and non-current liabilities, respectively, under IFRS.
E. “Leasehold rights”, which were included in “Other intangible assets” under U.S. GAAP, have been reclassified andpresented as “Right-of-use assets” under IFRS.
F.
“Accrued payroll and bonuses” and “Refund liability”, which were separately presented under U.S. GAAP, havebeen reclassified and presented as “Other current liabilities” under IFRS.
G.“Contingent consideration (short-term)” included in “Notes and accounts payable – Other payables” under Current
Liabilities and “Contingent consideration (long-term)”, which was separated presented under “Long-term liabilities”
under U.S. GAAP have been reclassified and presented as Current Liabilities and as “other financial liabilities” under
Non-current Liabilities”, respectively, under IFRS.
H. Items presented in “Operating costs and expenses”, “Other income (expenses)” under U.S. GAAP are recorded as“Finance income” and “Finance costs” for financial related gains and losses, while other items are presented as “Other
income” and “other expenses” under IFRS.
(ii) Recognition and measurement differences
The following adjustments are prorated to the related noncontrolling interests.
a. Fair value measurement of equity instruments
Valuation gains (losses), gains (losses) on sales, and impairment charges with respect to equity instruments arerecognized in net income or loss under U.S. GAAP, whereas changes in fair value are recognized in othercomprehensive income under IFRS expect for certain issues.
b. Adjustment of recorded amount of property, plant and equipment
Under U.S. GAAP, an impairment charge is recognized only when there is an indication that the total undiscounted
future cash flows expected from the use or eventual disposition of an asset (group) are less than its carrying amount.
On the other hand, under IFRS, if there is an indication of impairment, an impairment charge is recognized when therecoverable amount of an asset (group) is less than its carrying amount. The fair value of equipment, plant andequipment of certain consolidated subsidiaries with indications of impairment included our Wacoal Business(Overseas) was measured as at the transition date and recognized an impairment charge of 419 million yen, which was
adjusted to retained earnings as of the date of transition.
c. Adjustment of recorded amount of intangible assets
For certain intangible assets, the fair value of the transition date is used as deemed cost. The fair value of suchintangible assets at the transition date was 175 million yen, a decrease of 136 million yen compared to U.S. GAAP. In
addition, a write-down of 2 million yen was recorded as a result of measuring the fair value of intangible assets ofcertain consolidated subsidiaries as of the date of transition, both of which were adjusted to retained earnings as of thetransition date.
d. Adjustment of recorded amount of investments accounted for using equity method
Under U.S. GAAP, a loss is recognized when a series of losses or elements of the investee’s investment that indicate
an other-than-temporary decrease in the value of the investment have occurred. On the other hand, under IFRS, an
impairment charge is recognized if there is objective evidence of impairment after the application of the equity method.
Under U.S. GAAP, we did not experience a series of losses or other factors indicating an other-than-temporary
decrease in the value of its investments. However, under IFRS, we identified objective evidence of impairment for
certain investments included in our Wacoal Business (Overseas) and reduced the carrying amount of its investments
accounted for using equity method to their recoverable amount. Such recoverable amount is measured at Level 1 fairvalue. As a result, an impairment charge of 4,069 million yen was recognized and adjusted to retained earnings at thedate of transition, and an impairment charge of 1,485 million yen on investments accounted for using equity method
was recorded in the previous fiscal year.
e. Uniformity of reporting periods- 30 -

Certain consolidated subsidiaries and equity method affiliates that have a different fiscal year-end from that of theCompany have been unified in their reporting periods to match the Company’s fiscal year-end as of the date oftransition.
f. Adjustment related to retirement benefit accounting
Under U.S. GAAP, actuarial gains and losses and prior service cost are recognized in other comprehensive income
when incurred and amortized in subsequent periods. On the other hand, under IFRS, actuarial gains and losses(remeasurement of defined benefit plans) are recognized in other comprehensive income when incurred and
immediately transferred to retained earnings. In addition, past service costs are recognized immediately as part ofretirement benefit expenses.
g. Transfer of exchange differences on translation of foreign operations
Upon first-time adoption, we elected the exemptions provided in IFRS 1 and transferred all cumulative translationdifferences at the date of transition to retained earnings.
h. Adjustment related to recognition of levies
Items corresponding to property tax levies that the Company and certain consolidated subsidiaries are obligated to pay
were recognized over the fiscal year in which they were paid under U.S. GAAP, but are recognized in IFRS on the datethe event giving rise to the obligation occurs. The amount required as of the transition date is recognized as liability in“Trade and other payables” and adjusted to retained earnings as of the date of transition.
i. Adjustment for recognition of other long-term employee benefit obligations
For long-term employee benefit plans adopted by certain consolidated subsidiaries, which were not recognized under
U.S. GAAP, the present value of the projected payments as of the date of transition is included in “Other current
liabilities” and “Other non-current liabilities” as a liability and adjusted to retained earnings on the date of transition.
The net change in such liabilities is recognized as “Selling, general and administrative expenses” and “cost of sales”
under IFRS.
j. Recognition of right-of-use assets and lease liability, adjustment of recorded amount of right-of-use assets
Leases accounted for as “operating leases” under U.S. GAAP were remeasured in accordance with IFRS 16 as of thedate of transition and adjusted to retained earnings on the date of transition. The fair value of the right-of-use assets ofcertain consolidated subsidiaries as of the date of transition was measured at fair value, resulting in a write-down of
118 million yen, which was adjusted to retained earnings as of the date of transition.
k. Tax effect adjustments
Changes in deferred tax assets (deferred tax liabilities) occurred due to temporary differences arising (or eliminated)
as a result of IFRS adjustments, etc. In addition, with respect to the tax effects of unrealized intragroup transactions,deferred tax assets are recognized under IFRS at the tax rate of the seller, whereas under U.S. GAAP, the tax expense
was recognized at the source of sale.

- 31 -

l. Adjustment to retained earnings(Millions of Yen)
Date of Transition(April 1, 2021)
a. Fair value measurement of equity instruments

Previous consolidated Previous consolidated
first quarterfiscal year
(June 30, 2021)(March 31, 2022)(22,381)(21,253)(21,347)b. Adjustment of recorded amount of property, plant andequipment

(419)

(416)

(395)

c. Adjustment of recorded amount of intangible assets

(138)

(138)

(138)

(3,886)(4,152)(5,546)e. Uniformity of reporting periods

285

265

(386)

f. Adjustment related to retirement benefit accounting(941)(1,130)704

g. Transfer of exchange differences on translation of foreign
operations

2,930

2,930

2,930

h. Adjustment related to recognition of levies

(665)

(223)

(669)

(294)

(294)

(283)

79

69

(31)

(90)

(109)

(155)

(25,520)(24,451)(25,316)

219

137

597

98

205

203

(25,203)(24,109)(24,516)d. Adjustment of recorded amount of investments accounted
for using equity method

i. Adjustment for recognition of other long-term employee
benefit obligations
j. Recognition of right-of-use assets and lease liabilities,
adjustment of recorded amount of right-of-use assets
Other
Subtotalk. Tax effect adjustments
Adjustment related to noncontrolling interests
Total

Reconciliation of Consolidated Statement of Cash Flows for the previous consolidated first quarter (From April
1, 2021 to June 30, 2021) and the consolidated fiscal year (From April 1, 2021 to March 31, 2022)
There are no material differences between the consolidated statement of cash flows disclosed in accordancewith U.S. GAAP and the consolidated statement of cash flows disclosed in accordance with IFRS.

- 32 -