[Translation]

Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023
[IFRS]
May 12, 2023
Stock Exchanges: Tokyo

Listed Company: Wacoal Holdings Corp.
Code Number: 3591 URL: http://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 Commencement Date of Dividend Payment: June 5, 2023

Scheduled date of Ordinary Shareholders’ Meeting: June 28, 2023
Scheduled date of Annual Securities Report Filing: June 28, 2023
Supplementary materials regarding Annual Business Results: Yes
Explanatory meeting regarding Annual Business Results: Yes (for institutional investors and analysts)(Amounts less than 1 million yen have been rounded.)1.

Consolidated Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)(1) Consolidated Business Results

Revenue

Business Profit

Millionsof YenFiscal Year
ended March 188,592
31, 2023
Fiscal Year
ended March 172,072
31, 2022(Loss) Profit
Before Income
Operating (Loss) Taxes and Equity
Profitin Net Profit ofAffiliatedCompanies
Millions
Millions%%of Yenof Yen%Millionsof Yen

%

9.6

4,102

730.4

(3,490)

-

(699)

-

494

-

3,291

-

4,083

Total
Comprehensive
IncomeMillionsof Yen(% indicates changes from previous fiscal year)
Net (Loss) Profit
Attributable to Ownersof Parent(Loss) Profit
Millionsof Yen%Millionsof Yen%-(1,734)-(1,776)

-

-

1,585

-

1,732

-

Ratio of (Loss)
Profit Before
Return on Equity Income Taxes andBasic (Loss)
Diluted (Loss)
Attributable to Equity in Net Profit
Earnings per Share Earnings per Share Ownersof Parentof AffiliatedCompanies to Total
Assets

%

Yen

Yen

%

Ratio of Operating
Income to Revenue%

Fiscal Year
ended March
4,133 (60.3)(29.66)(29.66)(0.8)(0.2)
31, 2023
Fiscal Year
ended March 10,418
27.83
27.71
0.8
1.3
31, 2022(Reference) Share of profit (loss) of investments
Fiscal Year ended March 31, 2023: 2,223 million yen
accounted for using equity method:
Fiscal Year ended March 31, 2022: 579 million yen(Note) Business profit is calculated by subtracting cost of sales, and selling, general and administrative expenses from revenue.

%
(1.9)
1.9

(2) Consolidated Financial Condition

Fiscal Year
ended March
31, 2023
Fiscal Year
ended March
31, 2022

Equity Attributable to Ratio of Equity Attributable
Equity Attributable to
Owners of Parent
to Owners of Parent
Owners of Parent per ShareTotal Assets

Total Equity

Millions of Yen

Millions of Yen

Millions of Yen%

Yen

285,296

213,119

209,83473.5

3,617.03

299,177

220,868

217,99072.9

3,546.96-1-

(3) Consolidated Cash Flows Status

Fiscal Year Ended March 31, 2023
Fiscal Year Ended March 31, 2022
2.

Cash Flows
provided byOperating Activities
Millions of Yen
7,334
16,622

Cash Flows provided
by used in Investing
Activities
Millions of Yen
3,902(3,042)

Cash Flows used in
Financing Activities
Millions of Yen(22,541)(41,007)

Status of Dividends
Annual Dividends per Share

Fiscal Year Ended March 31, 2022
Fiscal Year Ended March 31, 2023
Fiscal Year Ending March 31,
2024 (Estimates)
3.

Balance of Cash and Cash
Equivalents at End of Fiscal
Year
Millions of Yen
26,781
37,485End ofFirst
Quarter

End ofSecondQuarter

End ofThird
Quarter

Yen

Yen

Yen

Yen

Yen

-

20.00
40.00
50.00

-

30.00
40.00
50.00

50.00
80.00
100.00Year-end Annual

Total
Amount ofDividends(annual)Millions of
Yen
3,093
4,720

Payout Ratio(consolidated)

Ratio of
Dividends toEquityAttributableto Owners of
Parent(consolidated)

%

%

179.7
120.9

1.4
2.2

Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)(% indicates changes from the previous fiscal year with respect to “Annual”
and from the six-month period ended September 30, 2022 with respect to “Six-month Period Ending September 30, 2023”)
Profit Before
Income Taxes and
Net Profit
Equity in Net
Basic Earnings per
Revenue
Business Profit Operating Profit
Attributable toProfit of
Share
Ownersof
ParentAffiliatedCompanies
Millions
Millions
Millions
Millions
Millions
%
%
%
%
%
Yen
of Yenof Yenof Yenof Yenof YenSix-month PeriodEnding103,000
5.6
4,500
3.6
4,400
10.0
5,500 (6.5)
3,900 (7.2)
67.23
September 30, 2023
Annual
205,000
8.7
6,000
46.3
6,000
7,000
4,800
82.74

-2-

*Notes(1) Changes in significant subsidiaries during the fiscal year ended March 31, 2023 (i.e., changes in specified subsidiaries (tokutei
kogaisha) which involve change in scope of consolidation): None
New: None
Excluded: None
(Note) For details, please see “3. Consolidated Financial Statements and Accompanying Notes – (6) Basic Significant Matters in
Preparation of Consolidated Financial Statements” on page 18.
(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)

(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:

Fiscal Year Ended
March 31, 2023
64,500,000 shares
6,487,185 shares
59,871,381 sharesFiscal Year Ended
March 31, 2022
65,589,042 shares
4,130,773 shares
62,234,734 shares(Reference) Summary of Non-consolidated Results1.

Non-consolidated Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)(1) Non-consolidated Business Results

Fiscal Year Ended March 31, 2023
Fiscal Year Ended March 31, 2022

Net Sales
Millions of Yen %
6,772
9.3
6,196
(62.3)

Fiscal Year Ended March 31, 2023
Fiscal Year Ended March 31, 2022

Net Income
per Share
Yen
74.46
44.18

Operating Income
Millions of Yen %
2,503
8.9
2,299
(82.0)(% indicates changes from previous fiscal year)
Ordinary Income
Net Income
Millions of Yen %Millions of Yen %
2,473
47.0
4,458
62.1
1,682
(86.0)
2,749(76.2)

Diluted Net Income
per Share
Yen
74.15
43.99

(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, 2023
154,705
130,60284.1
2,242.19
Fiscal Year Ended March 31, 2022
165,180
138,33283.4
2,241.50(Reference) Equity Capital: As of the end of the fiscal year ended March 31, 2023: 130,075 million yen
As of the end of the fiscal year ended March 31, 2022: 137,758 million yen*These financial statements are not subject to audit procedures by the certified public accountants or the independent auditor.
*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 the corresponding period of theprevious fiscal year and the previous fiscal year are also presented in accordance with IFRS. For differences between IFRS and U.S. GAAPin the financial figures, please see “3. Consolidated Financial Statements and Accompanying Notes – (7) Notes to the Consolidated Financial
Statements (First-time adoption)” on page 19 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. BusinessResults - (1) Business Results for Fiscal Year 2023 - (iii) Business Forecast for Next Fiscal Year” on page 9 of the attached materials.

-3-

Table of Contents for Attached Materials
1.

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

Business Results for Fiscal Year 2023 ----------------------------------------------------------------------------------------------------------- 5(2)

Financial Condition as of Fiscal Year 2023 ---------------------------------------------------------------------------------------------------- 10(3)

Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2023 and Fiscal Year 2024 ---------------------------- 11

2.

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

3.

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

Consolidated Statement of Financial Position --------------------------------------------------------------------------------------------------- 12(2)

Consolidated Statements of Profit or Loss and Consolidated Statement of Comprehensive Income ------------------------------------ 14(3)

Consolidated Statements of Equity ---------------------------------------------------------------------------------------------------------------- 16(4)

Consolidated Statements of Cash Flows ---------------------------------------------------------------------------------------------------------- 17(5)

Notes on Going Concern --------------------------------------------------------------------------------------------------------------------------- 18(6)

Basic Significant Matters in Preparation of Consolidated Financial Statements ------------------------------------------------------------ 18(7)

Notes to the Consolidated Financial Statements ------------------------------------------------------------------------------------------------ 19(Segment Information) ----------------------------------------------------------------------------------------------------------------------------------------- 19(Per Share Information) ---------------------------------------------------------------------------------------------------------------------------------------- 20(Significant Subsequent Events) ------------------------------------------------------------------------------------------------------------------------------- 20(First-time Adoption) ------------------------------------------------------------------------------------------------------------------------------------------- 21-4-

Qualitative Information and Financial Statements
1.

Business Results(1) Business Results for Fiscal Year 2023
(i) Results for the Fiscal Year Ended March 31, 2023

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

Previous Fiscal Year(ended March 2022)
Amount172,072
76,24895,824
95,330
494
3,749
952
3,291
1,930
232
(906)

Current Fiscal Year(ended March 2023)
Amount188,592
82,189106,403102,301
4,102
5,254
12,846(3,490)
1,517
795
2,069

(Millions of Yen)
Increased/(Decreased) fromprevious fiscal year
Amount%+16,520+9.6+5,941+7.8+10,579+11.0+6,971+7.3+3,608+730.4+1,505+40.1+11,894(6,781)(413)(21.4)+563+242.7+2,975
-

4,083

(699)

(4,782)-

1,732(1,776)(3,508)-(Our group voluntarily implements the International Financial Reporting Standards (“IFRS”) starting from the beginning of the current fiscal
year, and the results for the previous fiscal year have been reclassified to conform to IFRS.)Business environment surrounding our group during the current fiscal year (from April 1, 2022 to March 31, 2023) were severely affectedby weak sales of our core innerwear products in major countries. In Japan, although there were signs of recovery in consumer spending as
restrictions on economic activities eased, sales from our group’s domestic business has remained below our initial expectations due to thesluggish increase in the number of customers visiting our retail stores in addition to the negative impact on consumer spending arising fromrising inflation,. Our business environment in the United States remained weak due to the slowdown in consumer spending as well as theimpact of suppliers’ restraint on purchasing. Our business in China also remained challenging due to the impact of the prolonged
implementation of strict coronavirus pandemic (“COVID-19”) restrictions. On the other hand, our business in Europe maintained its growthtrend due to the strong performance of our core brands, while our business in other Asian countries also recovered as relaxation of COVID-19
restrictions took place.
Under such circumstances, our group announced in June 2022 the “VISION 2030”, our medium- to long-term strategy framework, andour mid-term business plan for the next three years starting with the current fiscal year, and we are working to achieve sustainable growth andto enhance our corporate value. In our domestic business, we continued to promote our unique CX strategy including the utilization of ourcustomers database and merger between online and offline activities to improve value of our customer experience, and strengthen our efforts
to improve profitability, aiming to “transform ourselves into a resilient corporate structure”. In our overseas business, we promoted initiativefor further growth by expanding our e-commerce business, in addition to expanding solid sales in the existing areas where we conduct ourbusiness. With regard to financial strategies side, we worked to improve our return on equity by implementing initiatives to improve
profitability and capital efficiency.
As a result of the above, for the current fiscal year, consolidated revenue was 188.59 billion yen (an increase of 9.6% as compared to suchrevenue for the previous fiscal year). Consolidated business profit was 4.10 billion yen (an increase of 730.4% as compared to such profit forthe previous fiscal year) due to the positive impact of the partial revision to the Flexible Retirement Program at Wacoal Corp. (*), in addition
to the increased revenue. We recorded a consolidated operating loss of 3.49 billion yen (as compared to a consolidated operating profit of 3.29
billion yen for the previous fiscal year) as a result of the impairment charges of 10.03 billion yen recorded on goodwill and intangible assets
related to Wacoal International Corp. (U.S.) and the expenses of 0.75 billion yen incurred for the implementation of the Flexible Retirement
Program at Wacoal Corp. (*), despite a gain from sale of fixed assets (3.02 billion yen) related to the sale of our former business office buildingin Osaka. Consolidated loss before income taxes and equity in net profit of affiliated companies was 0.70 billion yen (as compared to a
consolidated profit of 4.08 billion yen for the previous fiscal year) and consolidated net loss attributable to owners of parent was 1.78 billion
yen (as compared to a consolidated net profit of 1.73 billion yen for the previous fiscal year) as a result of the operating loss despite therecording of profit from our investments accounted for using equity method.
The key exchange rates used for the current fiscal year (the previous fiscal year) were: 135.47 yen (112.38 yen) to the U.S. dollar; 163.15
yen (153.56 yen) to the Sterling pound; and 19.75 yen (17.51 yen) to the Chinese yuan.
-5-(*) Please see our press release “Announcement Regarding Result of Implementation of the Flexible Retirement Program and Revision to
the Flexible Retirement Program” announced on February 10, 2023
(https://www.wacoalholdings.jp/en/ir/topics/files/wacoalholdingsnews20230210_2en.pdf).
(ii) Business Overview of Our Operating Segments(Millions of Yen)
Previous Fiscal Year(ended March 31, 2022)
AmountTotal Revenue
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other

172,072
88,12859,214
12,20012,530Current Fiscal Year(ended March 31, 2023)

Distribution
Ratio (%)
100.0
51.2
34.4
7.1
7.3

Previous Fiscal Year(ended March 31, 2022)
AmountOperating (Loss)/Profit
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other
a.

3,291
604
2,055
1,650
(1,018)Amount188,592
96,746
66,732
11,91813,196

Distribution
Ratio (%)
100.0
51.3
35.4
6.3
7.0

Current Fiscal Year(ended March 31, 2023)

% to
Sales
1.9
0.7
3.5
13.5
-

Amount(3,490)2,862(7,397)
915
130

% to
Sales
3.0
7.7
1.0

Increased/(Decreased)from previous fiscal year
Amount%+16,520+8,618+7,518
(282)
+666

+9.6
+9.8
+12.7
(2.3)
+5.3
(Millions of Yen)

Increased/(Decreased)from previous fiscal year
Amount%(6,781)+2,258(9,452)(735)+1,148+373.8(44.5)-

Wacoal Business (Domestic)In our “Wacoal Business (Domestic)” segment, while aiming to “transform ourselves into a resilient corporate structure” set forth as acore strategy under our mid-term business plan, we promoted our unique strategy to improve value of our customer experience and undertook
business structure reform to improve profitability.
During the current fiscal year, sales were significantly below our initial expectations. Despite the continued relaxation of restrictions on
economic activities, the number of customers visiting our retail stores remained sluggish due to lack of high-profile products as well as thenegative impact on consumer spending arising from rising inflation and suppliers’ restraint on purchasing. With regard to our CX strategy,
which is our focus for achieving renewed growth, the strengthening of our retention marketing through the integration of customer data was
successful, and sales from our existing member customers were in line with our plans, but sales from non-member customers including newcustomers remained weak, as we could not come up with effective promotional measures which would lead to store visits and customer
acquisition.
As a result of the above, revenue attributable to our “Wacoal Business (Domestic)” segment was 96.75 billion yen (an increase of 9.8%
as compared to such revenue for the previous fiscal year). Operating profit was 2.86 billion yen (an increase of 373.8% as compared to suchoperating profit for the previous fiscal year) due to the increased revenue as well as thorough cost control and a gain from sale of fixed assets(including our former business office in Osaka), despite the impact of soaring cost of sales associated with the sharp depreciation of theJapanese yen and increased returns due to suppressed in-store sales.
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 revisions. This change in presentation has no impact on operating
profit because this change resulted in increases in both revenue and selling, general and administrative expenses of the same amount (5.42billion yen) respectively.
b.

Wacoal Business (Overseas)

In order to “accelerate global growth” which is one of our core strategies under the mid-term business plan with respect to our “Wacoal
Business (Overseas)” segment, we made efforts to acquire new customers by strengthening digital marketing and to convert existing customers
to loyal customers by utilizing data and strengthening CRM.
With respect to Wacoal Europe Ltd., sales from swimwear products remained strong, and our products under “Elomi” brand achieved ahigh level of growth against the backdrop of the growing body-positive trend. In response, sales from department stores, specialty stores ande-commerce remained strong, maintaining the growth trend. Sales from Wacoal International Corp. (U.S.) remained sluggish, affected by theslowdown in consumer spending primarily due to the rapid inflation. Sales from Wacoal America, Inc., on a local currency basis, decreased
due to sluggish sales from our physical store channel caused by weak in-store sales, our clients’ restraint on procurement and production delays-6-

of our core products. In light of the recent deterioration in the marketing environment, Intimates Online, Inc., which distributes the “LIVELY”
brand, reformed its management structure in August and made efforts to improve profitability. However, as a result of significant reduction inadvertising expenses, the number of customers visiting its stores fell, and as a result, sales significantly decreased. Sales from Wacoal China
Co., Ltd. (“Wacoal China”) significantly decreased due to the weak e-commerce sales as well as the temporary closings of commercial facilities
and a decrease in the number of customers visiting stores, resulting from the impact of strict restrictions on activities under the zero-COVID
policy.
As a result of the above-described factors and the recent rapid depreciation of the Japanese yen against major currencies, sales revenues
attributable to our “Wacoal Business (Overseas)” segment on a Japanese yen basis were 66.73 billion yen (an increase of 12.7% as comparedto such sales revenues for the previous fiscal year). We recorded an operating loss of 7.40 billion yen (as compared to an operating profit of
2.06 billion yen for the previous fiscal year) due to the operating loss incurred at Wacoal China resulting from weak sales and an impairment
charge recorded at Wacoal International Corp. (U.S.).
c.

Peach John BusinessIn our Peach John Business, we aimed to achieve a high profit level by promoting product development that captures consumer needs andby developing effective marketing strategies.
During the current fiscal year, sales from our directly-managed stores exceeded the sales for the previous fiscal year due to the absenceof negative impact of COVID-19 seen during the previous fiscal year, as well as the strong instore sales of our core products under “NICEBODY” series. On the other hand, our e-commerce sales fell below the previous fiscal year’s level due to ineffective efforts to increase thenumber of customers visiting our online stores through content marketing measures using new brand muse and products. In addition, oursubsidiary in Peach John Business in China terminated its operations in December 2022.
As a result of the above, revenue attributable to our “Peach John Business” segment were 11.92 billion yen (a decrease of 2.3% ascompared to such revenue for the previous fiscal year). Despite our efforts to curb advertising expenses, operating profit decreased to 0.92
billion yen (a decrease of 44.5% as compared to such operating profit for the previous fiscal year) due to the impact of decreased revenue, thedepreciation of the Japanese yen leading to increase in raw materials costs and the loss incurred in connection with the termination of businessactivities of our subsidiary in China.
d.

Other

In our “Other” business segment, we proceeded to build a system that can continue to steadily generate profits by actively addressing
unprofitable businesses and reassessing fixed costs, 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 fiscal year, sales from Lecien Corporation decreased as a result of the weak sales of its private brand products sold bymajor apparel supply chain companies, despite a recovery in sales from its own brand products. Revenue from Nanasai Co., Ltd. and Ai Co.,
Ltd. increased on the back of a recovery in demand following the relaxation of COVID-19 restrictions.
As a result of the above, revenue and operating profit attributable to our “Other” business segment were 13.20 billion yen (an increase of
5.3% as compared to such revenue for the previous fiscal year) and 0.13 billion yen (as compared to an operating loss of 1.02 billion yen forthe previous fiscal year), respectively. While sales from each company in the segment remain below the pre-pandemic level, we were able torecord profit due to an improvement in profit structure resulting from a progress in reassessment of operations of each company as well as thecompensation received from the vacating of a factory site by a subsidiary of Lecien Corporation.

-7-

(Reference) Revenue and Operating (Loss)/ Profit of Major Subsidiaries(Millions of Yen)

Revenue

Previous Fiscal Year(from April 1, 2021 toMarch 31, 2022)
AmountWacoal Corp.
Wacoal International Corp. (U.S)
Wacoal Europe Ltd.
Wacoal China Co., Ltd.
Peach John Co., Ltd.
Lecien Corporation
Nanasai Co., Ltd.

81,18425,282
16,305
11,734
12,2003,475
6,042

Current Fiscal Year(from April 1, 2022 toMarch 31, 2023)

Distribution
Ratio (%)
47.2
14.7
9.5
6.8
7.1
2.0
3.5

Amount90,94828,014
19,184
10,365
11,9183,189
6,196

Distribution
Ratio (%)
48.2
14.9
10.2
5.5
6.3
1.7
3.3

Increased/(Decreased) fromprevious fiscal year

Amount%+9,764+2,732+2,879(1,369)
(282)
(286)
+154

+12.0
+10.8
+17.7
(11.7)
(2.3)
(8.2)
+2.5

*Revenue from external customers only
(Millions of Yen)

Operating (Loss)/Profit

Previous Fiscal Year(from April 1, 2021 toMarch 31, 2022)
AmountWacoal Corp.
Wacoal International Corp. (U.S.)
Wacoal Europe Ltd.
Wacoal China Co., Ltd.
Peach John Co., Ltd.
Lecien Corporation
Nanasai Co., Ltd.

1,733
490
1,945
(166)
1,650
(593)
(145)

Current Fiscal Year(from April 1, 2022 toMarch 31, 2023)

% to
Sales
2.1
1.9
11.9
13.5
-

Amount2,753(9,448)
1,680
(698)
915
111
9

-8-

% to
Sales
3.0
8.8
7.7
3.5
0.1

Increased/(Decreased) fromprevious fiscal year

Amount%+1,020(9,938)
(265)
(532)
(735)
+704
+154

+58.9
(13.6)(44.5)-

(iii) Business Forecast for Next Fiscal Year
(Millions of Yen)

Category

Fiscal Yearending March
2024(Estimates)

Percentage
Change (%)

Revenue
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other

205,000
103,700
73,45012,60015,250

+8.7
+7.2
+10.1
+5.7
+15.6

First Half of
Fiscal Yearending March
2024(Estimates)
103,000
51,20037,8006,250
7,750

Percentage
Change (%)
+5.6
+4.8
+7.7
+3.8
+2.9

Second Half of
Fiscal Yearending March
2024(Estimates)
102,000
52,50035,6506,350
7,500

Percentage
Change (%)
+12.0
+9.6
+12.7
+7.7
+32.4
(Millions of Yen)

Fiscal Yearending March
2024(Estimates)

Category

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

6,000
1,250
3,450
700
600

Percentage
Change (%)(56.3)(23.5)+361.5First Half of
Fiscal Yearending March
2024(Estimates)
4,400
830
2,680
470
420

Percentage
Change (%)+10.0(47.1)+72.7(43.4)+757.1

Second Half of
Fiscal Yearending March
2024(Estimates)
1,600
420
770
230
180

Percentage
Change (%)(67.5)+170.6+222.2(Millions of Yen)

Income before income taxes
and equity in net income ofaffiliated companies
Net income
Net income attributable toowners of parent

7,000

-

5,500

(6.5)

1,500

-

4,800

-

3,900

(8.9)

900

-

4,800

-

3,900

(7.2)

900

-

Fiscal Year ending March 2024
(Estimates)
88.00 yen

Category

Fiscal Year ended March 2023
Amount(29.66) yen

Basic Earnings (Loss) per ShareDividend per share:
Interim50.00 yen (scheduled)Year-end
50.00 yen (scheduled)(Note) The “Basic Earnings per Share” information takes into account the impact of repurchase of treasury stock.

40.00 yen
40.00 yen (scheduled)During the fiscal year ending March 2024, we expect that the environment surrounding our business will continue to be unstable due to a
mix of expectations of a recovery in consumer spending in hopes to put an end to COVID-19 and concerns of a slowdown in consumption
following price hikes, geopolitical risks and financial anxiety. Under these circumstances, we will continue to endeavor to address increasingly
complex and diverse social issues as “an opportunity for future growth”, promote “sustainability management” to achieve both “resolution ofsocial issues” and “sustainable growth” through our business and enhance corporate value through the following initiatives:
Transformation to management focused on capital efficiency
Our market capitalization, a market valuation that takes into account future growth, has remained below our net assets, and we recognize that
it is critical to address this issue to restore the stagnant price-to-book ratio (P/B ratio) to a level of 1x or more by quickly improving
profitability and achieving a return on capital that exceed cost of capital. Accordingly, we will achieve medium- to long-term corporate
value enhancement through sustainable growth, by ensuring that each operating entity and/or business division will shift to management thatis more focused on profitability and capital efficiency than in the past, and formulating and executing highly effective strategies. Our new
management takes the lead in analyzing and evaluating our capital profitability and market valuation as well as policies, goals and/or
management indicators for improving P/B ratio, specific initiatives and timeframe for the execution of these initiatives. We plan to disclose
these in mid-November 2023.
Enhancement of governanceIn order to shift to a management that focuses on capital efficiency and to achieve a return on capital that exceeds cost of capital, we willneed to further strengthen the supervisory function of our Board of Directors over execution of business and to enhance effectiveness ofmanagement. In order to steadily implement our agenda of improving profitability and capital efficiency, we have examined the skill set of
our Board of Directors and decided to appoint an additional Outside Director with experience and knowledge in the areas of investment andfinancial capital markets.
-9-Improvement of business profitability
Although the restrictions on activities in various countries and/or regions following the spread of COVID-19 have been eased, the recovery
in profit has been slow due to inadequate response to changing consumer needs and consumer behaviors from the experience of COVID-19.
We will achieve renewed growth by providing new customer experience value and creating new business, while at the same time continuing
to reform our cost structure and improve business efficiency.
Based on the above-described initiatives, we expect revenue of 205.0 billion yen, operating income of 6.0 billion yen, profit before income
taxes and equity in net profit of affiliated companies of 7.0 billion yen, and net profit attributable to owners of parent of 4.8 billion yen for the
consolidated business results for the fiscal year ending March 31, 2024. We formulated our plan for the fiscal year ending March 31, 2024
using the key exchange rates of 130.00 yen to the U.S. dollar; 160.00 yen to the Sterling pound; and 19.00 yen to the Chinese yuan.
(2) Financial Condition as of Fiscal Year 2023
Status of Assets, Liabilities and Shareholders’ Equity
Our total assets as of March 31, 2023 were 285,296 million yen, a decrease of 13,881 million yen from the end of the previous
consolidated fiscal year, mainly due to impairment charges recorded on goodwill and intangible assets, in addition to repurchase of treasury
stock and a decrease in cash and cash equivalents for repayment of borrowings.
Our current liabilities were 72,177 million yen, a decrease of 6,132 million yen from the end of the previous consolidated fiscal year,
mainly due to decreases in borrowings and lease liabilities.
Equity attributable to owners of parent was 209,834 million yen, a decrease of 8,156 million yen from the end of the previous
consolidated fiscal year, due to a decrease in retained earnings and an increase in treasury stock.
As a result of the above, our ratio of equity attributable to owners of parent as of March 31, 2023 was 73.5%, an increase of 0.6%
from the end of the previous consolidated fiscal year.
Cash Flows Status
The balance of cash and cash equivalents as of March 31, 2023 was 26,781 million yen, a decrease of 10,704 million yen from theend of the previous consolidated fiscal year.
Cash flow provided by operating activities:
Cash flow provided by operating activities was 7,334 million yen, a decrease of 9,288 million yen as compared to the previous
consolidated fiscal year, after adjustments for changes in assets and liabilities to our net loss of 1,734 million yen plus adjustments for
impairment charges.
Cash flow provided by investing activities:
Cash flow provided by investing activities was 3,902 million yen, as compared to cash flow used in investing activities in the amountof 3,042 million yen for the previous consolidated fiscal year, due to sales of investment securities and property, plant and equipment.
Cash flow used in financing activities:
Cash flow used in financing activities was 22,541 million yen, a decrease of 18,466 million yen as compared to the previous
consolidated fiscal year, due to repurchase of treasury stock, repayment of borrowings, as well as payments made for dividends.

- 10 -

(3) Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2023 and Fiscal Year 2024
Our basic policy on profit distributions to shareholders is to make stable distributions based on consideration of our consolidated businessresults, while seeking to increase net income per share by enhancing our corporate value through active investments aimed at improving
profitability.
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.
Based on the above, we plan to distribute 40.00 yen per share as a year-end dividend for the current fiscal year, the same amount as theestimated dividend announced during the latest quarter. The total annual cash dividend per share will be 80.00 yen, including the interim
dividend per share of 40.00 yen.
For the fiscal year ending March 31, 2024, we plan to declare, based on the above policy and profit growth, an annual cash dividend pershare of 100.00 yen (an increase of 20.00 yen as compared to the annual cash dividend for the current fiscal year), composed of an interim
dividend per share of 50.00 yen (an increase of 10.00 yen as compared to the interim dividend for the previous fiscal year) and a year-end
dividend per share of 50.00 yen (an increase of 10.00 yen as compared to the year-end dividend for the previous fiscal year).
2.

Basic Policies regarding Selection of Accounting Standards

Our group adopts the International Financial Reporting Standards starting from the fiscal year ended March 31, 2023 in order to improve
international comparability and convenience of financial information in the capital markets.

- 11 -

3.

Consolidated Financial Statements and Accompanying Notes(1) Consolidated Statement of Financial Position(Millions of Yen)
Date of Transition(April 1, 2021)

Previous Consolidated
Fiscal Year
as of March 31, 2022

Current Consolidated
Fiscal Year
as of March 31, 2023

Cash and cash equivalents

63,98737,48526,781

Trade and other receivables

18,657

20,706

20,215

Other financial assets

2,238

1,795

1,804

Inventories

43,40245,92653,720

Other current assets

7,067

2,923

3,100

135,351

108,835

105,620

Property, plant and equipment

44,97348,602

46,702Right-of-use assets

12,967

13,986

12,260Goodwill

21,16922,945

16,256

Intangible assets

15,343

15,666

13,043

Investment property

3,126

2,725

2,957

Investments accounted for using equity method

17,89818,23920,499Other financial assets

56,33452,24950,195Retirement benefit assets

9,434

13,28013,978Deferred income taxes

1,641

1,680

2,953

Other non-current assets

979

970

833

183,864

190,342

179,676

319,215

299,177

285,296

Accounts

AssetsCurrent assets:

Total current assets
Non-current assets:

Total non-current assets
Total assets- 12 -

(Millions of Yen)
Accounts

Date of Transition(April 1, 2021)

Previous Consolidated
Fiscal Year
as of March 31, 2022

Current Consolidated
Fiscal Year
as of March 31, 2023

40,707

10,2275,000

Liabilities and Equity
Liabilities
Current liabilities:
Borrowings
Lease liabilities

3,657

5,197

4,661

Trade and other payables

15,05816,73817,535

Other financial liabilities

2,365

1,661

1,172

Income taxes payable

879

1,363

1,683

Other current liabilities

14,132

14,08013,791

76,79849,266

43,842

Borrowings

1,498

1,626

3,084

Lease liabilities

8,676

8,254

7,670

Other financial liabilities

1,639

820

－

Retirement benefit liability

2,089

3,466

2,470

Deferred income taxes

12,065

13,607

13,886

Other non-current liabilities

1,516

1,270

1,225

Total non-current liabilities

27,48329,04328,335

Total liabilities

104,28178,30972,177

Common stock

13,26013,26013,260Additional paid-in capital

29,12029,07729,029Retained earnings

156,143

158,940

151,418

Other components of equity

22,381

27,571

32,021

Treasury stock, at cost

(8,876)(10,858)(15,894)

Total equity attributable to owners of parent

212,028

217,990

209,834

Noncontrolling interests

2,906

2,878

3,285

Total equity

214,934

220,868

213,119319,215

299,177

285,296

Total current liabilities
Non-current liabilities

EquityTotal liabilities and equity- 13 -

(2) Consolidated Statements of Profit or Loss and Consolidated Statement of Comprehensive Income(Consolidated Statement of Profit or Loss)(Millions of Yen)
Accounts

Previous Consolidated Fiscal Year
(From April 1, 2021
to March 31, 2022)

Current Consolidated Fiscal Year
(From April 1, 2022
to March 31, 2023)%%

Revenue

172,072

100.0

188,592

100.0

Cost of sales(76,248)(44.3)(82,189)(43.6)

Selling, general and administrative expenses(95,330)(55.4)(102,301)(54.3)

3,749

2.2

5,254

2.8

Other income
Other expenses

(952)

(0.6)

(12,846)

(6.8)

3,291

1.9

(3,490)(1.9)

Finance income

1,930

1.1

1,517

0.8

Finance costs
Share of profit of investments accounted for using equity
methodImpairment charges of investments accounted for using
equity method

(232)

(0.1)

(795)

(0.4)

579

0.3

2,223

1.2

(1,485)

(0.8)

(154)

(0.1)

Operating (loss) profit

4,083

2.4

(699)

(0.4)

Income tax expense(Loss) profit before tax(2,498)(1.5)(1,035)(0.5)(Loss) profit

1,585

0.9

(1,734)(0.9)(Loss) profit attributable to:
Owners of parent

1,732

1.0

(1,776)(0.9)

Noncontrolling interests

(147)

(0.1)

42

0.0

(Loss) profit

1,585

0.9

(1,734)(0.9)(Loss) earnings per share:
Basic (loss) earnings per share (yen)27.83(29.66)

Diluted (loss) earnings per share (yen)27.71(29.66)- 14 -

(Consolidated Statement of Comprehensive Income)(Millions of Yen)
Accounts

Previous Consolidated Fiscal Year
(From April 1, 2021
to March 31, 2022)(Loss) profit

Current Consolidated Fiscal Year
(From April 1, 2022
to March 31, 2023)

1,585(1,734)

(538)

1,826

2,769

(251)

297

430

2,528

2,005

5,811

3,553

494

309

6,305

3,862

Total other comprehensive income

8,833

5,867

Comprehensive income

10,418

4,133

10,476

4,034

Noncontrolling interests

(58)

99

Comprehensive income

10,418

4,133

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Remeasurement of defined benefit plans
Share of other comprehensive income of investments
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 of investments
accounted for using equity method
Total

Comprehensive income attributable to:
Owners of parent- 15 -

(3) Consolidated Statements of Equity
Previous Consolidated Fiscal Year (From April 1, 2021 to March 31, 2022)(Millions of Yen)
Equity attributable to owners of parent
Item
Share capital

Balance at April 1, 2021

13,260Capitalsurplus29,120

Profit (loss)

Retainedearnings

Other
componentsof equity

Treasurystock

156,143

22,381(8,876)

2,906

214,934

1,732

(147)

1,585

8,744

89

8,833

－

10,476(58)

10,418(2,089)(2,089)(2,089)8,744

Total comprehensive income

－

－

1,732

8,744

Repurchase of treasury stock

Total equity

212,028

1,732

Other comprehensive income

Noncontrollinginterests

Total

Disposal of treasury stock

(0)

1

1

1

Share-based payment transactions

(43)

106

63

63

Dividends
Equity(2,498)transactions

with(2,498)(82)(2,580)

－

112

112

noncontrollinginterests
Transfer from other components of equity to

3,554

retained earnings
Other(3,554)

9

Total transactions with owners
Balance at March 31, 2022

－

－

9

9

－

(43)

1,065

(3,554)(1,982)(4,514)30(4,484)

13,26029,077

158,940

27,571(10,858)

217,990

2,878

220,868

Current Consolidated Fiscal Year (From April 1, 2022 to March 31, 2023)(Millions of Yen)
Equity attributable to owners of parent
Item
Share capital

Balance at April 1, 2022

13,260Capitalsurplus29,077

Profit (loss)

Treasury
stock

Total

158,940

27,571(10,858)

217,990

2,878

220,868(1,776)42(1,734)

5,810

57

5,867

－

4,034

99

4,133

(8,035)(8,035)(8,035)

2,863

－

－

136

88

88

Other comprehensive income

5,810
－

－

(1,776)

5,810

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

Share-based payment transactions(48)

Dividends
Equitytransactions(4,243)withnoncontrollinginterests
Transfer from other components of equity toretained earnings
Total transactions with owners
Balance at March 31, 2023

Total equity

Other
componentsof equity(1,776)

Total comprehensive income

Noncontrollinginterests

Retainedearnings

1,360(1,360)(4,243)(95)(4,338)

－

403

403

－

－

－

(48)

(5,746)(1,360)(5,036)(12,190)308(11,882)

13,26029,029151,418

32,021(15,894)

209,834

3,285

213,119- 16 -

(4) Consolidated Statement of Cash Flows(Millions of Yen)
Accounts

Previous Consolidated Fiscal Year
(From April 1, 2021
to March 31, 2022)

Current Consolidated Fiscal Year
(From April 1, 2022
to March 31, 2023)

1,585
10,689211(1,930)232(1,734)
12,364
10,136(1,517)795(579)(2,223)

1,485

154

2,498
(1,960)(1,035)
(644)
(194)
1,499
721
(1,673)
1,466
12,371
62
1,489
(226)
2,926
16,622

1,035(2,650)
1,053(6,692)185
480(1,714)(1,255)(1,018)
7,399
115
1,932
(270)
(1,842)
7,334

531
(361)
(6,621)
2,799(3,172)
321
(4)
3,410
55
(3,042)289(178)(2,879)4,468(2,169)
3
(135)
4,372
131
3,902

(30,460)(5,230)－(35)(4,658)112(2,089)1(2,498)(82)(1,298)(41,007)925(26,502)
63,98737,485

1,355－(5,981)403(8,035)0(4,243)(95)(715)(22,541)
601(10,704)
37,48526,781

Operating activities(Loss) profit
Depreciation and amortization
Impairment charges
Finance income
Finance costs
Share of profit of investments accounted for using equity
methodImpairment charges of investments accounted for using equity
methodIncome tax expense
Gain on sale and disposal of property, plant and equipment-net
Decrease (increase) in trade and other receivables
Increase in inventories
Decrease (increase) in other assets
Increase in trade and other payables(Decrease) increase in retirement benefit asset or liability
Decrease in other liabilities
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes (paid) received
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
Collection of loans receivable
Purchase of other financial assets
Proceeds from sale or amortization of other financial assets
Other
Net cash provided by (used in) investing activities
Financing activities
Net decrease in short-term bank loans with original maturitiesof three months or lessProceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Capital contribution from noncontrolling interests
Payments for purchase of treasury stock
Proceeds from disposal 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- 17 -

(5) Notes on Going Concern
Not applicable.
(6) Basic Significant Matters in Preparation of Consolidated Financial Statements(i)Standard of Preparation of Consolidated Financial Statements

Our group has implemented IFRS starting from the current consolidated fiscal year. The date of transition to IFRS is April 1, 2021.
(ii) Matters Regarding the Scope of Consolidation and Application of the Equity Method
Major consolidated subsidiaries:
Wacoal Corporation, Peach John Co., Ltd., Lecien Corporation, Wacoal Manufacturing Japan 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.
(iii) Changes Regarding Subsidiaries and Affiliated Companies
New: Excluded: Niigata Wacoal Sewing Corp., Hokuriku Sewing Wacoal Corp., and Dalian Lecien Fashion Co., Ltd.

- 18 -

(7) Notes to the Consolidated Financial Statements(Segment Information)(i)

Reportable Segment Information

Previous Consolidated Fiscal Year (From April 1, 2021 to March 31, 2022)(Millions of Yen)
Reportable Segment
Other(Note) 1

Adjustments

Consolidated

159,542

12,530－172,072

363

9,632

3,694

(13,326)－

67,63912,563

169,174

16,224(13,326)

172,072

2,055

1,650

4,309

(1,018)－3,291

WacoalBusiness(Domestic)

WacoalBusiness(Overseas)

Peach John
Business

88,12859,214

12,200

844

8,425

Total

88,972

Segment profit (loss)(Note) 2

604

Total

Revenue
External customers
Intersegment

Current Consolidated Fiscal Year (From April 1, 2022 to March 31, 2023)(Millions of Yen)
Reportable Segment
Other(Note) 1

Adjustments

Consolidated

175,396

13,196－

188,592

248

15,021

4,434(19,455)－

12,166

190,417

17,630(19,455)

188,592

WacoalBusiness(Domestic)

WacoalBusiness(Overseas)

Peach John
Business

External customers

96,746

66,732

11,918Intersegment

1,048

13,725

97,79480,457

Total

Revenue

Total

Segment profit (loss)－
2,862(7,397)915(3,620)130(3,490)(Note) 2(Note) 1. The “Other” category includes Lecien business, Nanasai business, and other business segments which are not included in theoperating segment.
2. The sum of the segment profit (loss) agrees to the operating profit (loss) on the consolidated statement of profit or loss. For areconciliation from operating profit (loss) to profit before income taxes and equity in net profit of affiliated companies, please
see the consolidated statement of profit or loss.
3. The Company accounts for intersegment sales and transfers at cost plus an interest.

- 19 -

(ii) Segment Information by Region
Revenue – external customers(Millions of Yen)
Previous Consolidated Fiscal Year
(From April 1, 2021 to March 31, 2022)

Current Consolidated Fiscal Year
(From April 1, 2022 to March 31, 2023)

Japan

111,623

120,712Asia and Oceania

20,29522,316

Americas and Europe

40,15445,564

Total

172,072

188,592(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 fiscal year and current
consolidated fiscal year were 30,113 million yen and 33,046 million yen, respectively.

(Per Share Information)(i)

Basis for calculation of basic earnings per share

Previous Consolidated Fiscal Year
ended March 31, 2022

Current Consolidated Fiscal Year
ended March 31, 2023

1,732

(1,776)

1

(1)

1,731

(1,775)62,23559,87119

43

Weighted average number of shares (Thousand shares)

62,21659,828

Basic (loss) earnings per share (Yen)

27.83(29.66)

Previous Consolidated Fiscal Year
ended March 31, 2022

Current Consolidated Fiscal Year
ended March 31, 2023

1,731

(1,775)

－

－

1,731

(1,775)62,21659,828264－

Diluted weighted average number of common shares(Thousand shares)

62,48059,828

Diluted (loss) earnings per share (Yen)

27.71(29.66)(Loss) profit attributable to owners of parent (Millions of
Yen)(Loss) profit attributable to participating equity
instruments (Millions of Yen)
(Loss) profit used when calculating basic earnings per
share (Millions of Yen)
Weighted average number of tradable shares(Thousand shares)
Weighted average number of participating equity
instruments (Thousand shares)(ii) Basis for calculation of diluted earnings per share

Profit used when calculating basic earnings per share(Millions of Yen)
Profit reconciliation (Millions of Yen)
Profit used when calculating diluted earnings per share(Millions of Yen)
Weighted average number of common shares (Thousand
shares)Increase in number of common stock
Stock acquisition rights (Thousand shares)(Note) Potential shares do not have dilutive effect as the exercise of stock acquisition rights reduce the loss per share for the current
consolidated fiscal year.
(Significant Subsequent Events)- 20 -

Not applicable.

- 21 -

(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 mandatoryand discretionary exemptions from retrospective application of IFRS standards. The effect of the application of these exceptions andexemptions is adjusted in retained earnings and/or other components of equity at the date of transition to IFRS. The exemptions adopted byour 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 to business combinations forwhich the acquisition date occurs prior to the date of transition to IFRS. Our group has applied such exemption and chosen not to apply
retrospectively to business combinations that occurred prior to the date of transition. As a result, the amount of goodwill arising from businesscombinations 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 andintangible assets as deemed cost as of that date. Our group uses fair value as of the date of transition 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 on translation of foreign
operations to be zero as of the date of transition to IFRS. Our group has chosen to deem the cumulative amount of the exchange differenceson 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 of transition to IFRS basedon the facts and circumstances at the date of transition. It also permits to measure the lease liability at the present value of the remaining lease
payments discounted at the lessee’s additional borrowing rate as of the date of transition, and the right-of use asset at the same amount as thelease liability. Leases ending within 12 months from the 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 oftransition, rather than on facts and circumstances existing at the time of recognition. In addition, it is permitted 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 of transition, 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 recognition of gains or losses
on initial recognition of financial assets and liabilities.

- 22 -

(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 and measurement differences”.

- 23 -

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-ofuse 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 and
Reclassification
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 otherreceivables

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- 24 -

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

Recognition and
Reclassification
measurement
differences

U.S.
GAAP

IFRS

Note

Presentation under IFRS
Liabilities and Equity
Liabilities
Current Liabilities
Borrowings
Lease liabilities

40,672
－

35
4,411

－
(754)

40,707
3,657

D, j

－

14,330728

15,058hTrade and other payables

712
8,734
6,610
－

(712)
(8,734)(6,610)
2,372

－
－
－
(7)

－
－
－
2,365

G

Other financial liabilities

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)－－Other long-term liabilities

2,183

(781)

114

1,516

Total long-term liabilities

28,074(638)

47

27,483

104,14523

113

104,281

Other non-current
liabilities
Total non-current
liabilities
Total liabilities

13,26029,120181,346－－－－－(25,203)

13,26029,120156,143l

EquityCommon stock
Additional paid-in capital
Retained earnings－

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

Notes and accounts
payableTrade 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)

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- 25 -

Income taxes payable

F, i

D, j
G

k

i

Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit
liability
Deferred income taxes

Other components ofequityTreasury stock, at cost
Total equity attributableto owners of parent
Noncontrolling interests
Total equity
Total liabilities and equity

Reconciliation of Equity as at the end of the 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-ofuse 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 and
Reclassification
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 otherreceivables

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)

48,602

12,356886

744

13,986 D, E, j

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- 26 -

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

Recognition and
Reclassification
measurement
differences

U.S.
GAAP

IFRS

Note

Presentation under IFRS

10,227
－

－
4,549

－
648

10,227
5,197

D, jLiabilities and Equity
Liabilities
Current Liabilities
Borrowings－

16,164574

16,738hLease liabilities

558
10,067
7,006
－

△558
△10,067△7,006
1,661

－
－
－
－

－
－
－
1,661

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

Liabilities for termination
and retirement benefit

3,345

103

18

3,466

Deferred income taxes

14,095－(488)

13,6078,150(8,150)

－

－

820

(820)

－

－

Other long-term liabilities

1,854

(800)

216

1,270

Total long-term liabilities

29,890

(697)

(150)

29,043

77,193－

1,116

78,309Other non-current
liabilities
Total non-current
liabilities
Total liabilities

13,26029,077
183,456－－－－－(24,516)

13,26029,077
158,940l

EquityCommon stock
Additional paid-in capital
Retained earnings

－

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(Liabilities)
Current Liabilities
Short-term bank loans
Notes and accounts
payableTrade 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

Long-term operating leaseliabilities
Contingent consideration(long-term)

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- 27 -

Trade and other payables

G

Other financial liabilities

Income taxes payable

F, i

D, j
G

Other current liabilities
Total current liabilities

Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilitieskRetirement benefit
liability
Deferred income taxesiOther components ofequityTreasury stock, at cost
Total equity attributableto owners 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 fiscal year
(From April 1, 2021 to March 31, 2022)(Millions of Yen)
Recognition and
Presentation
U.S.
Reclassification
measurement
IFRS
Note
Presentation under IFRS
under U.S. GAAP
GAAP
differences
Net sales

172,860

13(801)

172,072

Revenue(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

－

792

(123)

579

－

－

(1,485)(1,485)

Finance costs
Share of profit ofinvestments accounted forusing equity method
Impairment charges 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 expenses
Cost of sales
Selling, general andadministrative expenses
Gain on sales or disposal ofproperty, plant andequipment – net
Impairment charges ontangible assets

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 incomedProfit before tax
kIncome tax expense

ProfitProfit attributable to:

Net income attributable to
Wacoal Holdings Corp.
Net income 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

U.S.
GAAP
4,541

Recognition and
Reclassification
measurement
differences－(2,956)

IFRS

Note

1,585

－

－

(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)

10,418Presentation under IFRSProfitOther comprehensive
incomeItems 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 orloss
Exchange differenceson translation offoreign operations
Share of othercomprehensive incomeof investments
accounted for using
equity method
Total othercomprehensive income
Comprehensive 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”, and “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 and presented 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 and presented as “Rightof-use assets” under IFRS.
F.
“Accrued payroll and bonuses” and “Refund liability”, which were separately presented under U.S. GAAP, have been 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 are recognized in net income
or loss under U.S. GAAP, whereas changes in fair value are recognized in other comprehensive 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 the recoverable amount of an asset (group) is less than its
carrying amount. The fair value of equipment, plant and equipment of certain consolidated subsidiaries with indications of impairment
included our Wacoal Business (Overseas) was measured as at the date of transition 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 such intangible assets at thetransition date was 175 million yen, a decrease of 136 million yen compared to such fair value under U.S. GAAP. In addition, a writedown of 2 million yen was recorded as a result of measuring the fair value of intangible assets of certain consolidated subsidiaries as ofthe date of transition. Both of them were adjusted to retained earnings as of the date of transition.
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-thantemporary 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 seriesof 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 amountof 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 the date of transition,
and an impairment charge of 1,485 million yen on investments accounted for using equity method was recorded in the previous
consolidated fiscal year.
e. Uniformity of reporting periods
Certain consolidated subsidiaries and equity method affiliates that have a different fiscal year-end from that of the Company have been
unified in their reporting periods to match the Company’s fiscal year-end as of the date of transition.
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 andamortized in subsequent periods. On the other hand, under IFRS, actuarial gains and losses (remeasurement of defined benefit plans) arerecognized in other comprehensive income when incurred and immediately transferred to retained earnings. In addition, past service costs
are recognized immediately as part of retirement benefit expenses.
g. Transfer of exchange differences on translation of foreign operations- 30 -

Upon first-time adoption, we elected the exemptions provided in IFRS 1 and transferred all cumulative translation differences at thedate 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 recognizedover the fiscal year in which they were paid under U.S. GAAP, but are recognized in IFRS on the date the 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, thepresent 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 the date of transition
and adjusted to retained earnings on the date of transition. The fair value of the right-of-use assets of certain consolidated subsidiaries asof 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.
l. Adjustment to retained earnings(Millions of Yen)
Previous consolidated
fiscal year
(March 31, 2022)

Date of Transition(April 1, 2021)
a. Fair value measurement of equity instruments(22,381)(21,347)b. Adjustment of recorded amount of property, plant and equipment

(419)

(395)

c. Adjustment of recorded amount of intangible assets

(138)

(138)

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

285

(386)

f. Adjustment related to retirement benefit accounting

(941)

704

g. Transfer of exchange differences on translation of foreign operations

2,930

2,930

h. Adjustment related to recognition of levies

(665)

(669)

i. Adjustment for recognition of other long-term employee benefit obligations

(294)

(283)

79

(31)

(90)

(155)

(25,520)(25,316)

219

597

98

203

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

j. Recognition of right-of-use assets and lease liabilities, adjustment of recorded amountof 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 fiscal year (From April 1, 2021 to March
31, 2022)
There are no material differences between the consolidated statement of cash flows disclosed in accordance with U.S. GAAPand the consolidated statement of cash flows disclosed in accordance with IFRS.
- End - 31 -