Wacoal Holdings Corp. Financial Results Presentation

Review of
the Fiscal Year Ended March 31, 2021,
and Initiatives for the Fiscal Year Ending March 31, 2022
Hironobu Yasuhara
Representative Director, President and Corporate Officer
Wacoal Holdings Corp.
May 20, 2021
1

[Speaker]
Hironobu Yasuhara
Representative Director, President and Corporate Officer

FY2021 Review
Against a backdrop of rapid changes in distribution and customer needs
stemming from the COVID-19 pandemic, the initiatives we have been focusing
on for the past few years, such as strengthening EC and the CX strategy byintroducing 3D measurement technology, are starting to bear fruit.
Additionally, structural reforms aimed at improving the high cost structure areaccelerating.
Ensuring the “health and safety” of customers and employees:
prevent the spread of COVID-19



Implementing thorough cost reductions:excess inventory

Promoting the CX strategy:

Accelerating EC growth:Progressing with structural reforms:

Providing services such as fitting while working toCarrying our bold reviews of measures and spending plans, and avoiding

Making progress with “digitalization” and “personalization” efforts

Growing the EC business globally in response to rising demand for EC due to COIVD-19
Accelerating structural reforms aimed at improving the high cost structure

2

Yasuhara: I am Yasuhara. We would like to express our sincere gratitude for your continued support.
I will now review the results for the fiscal year ended March 2021 and explain our initiatives for the fiscal year
ending March 2022.
Please see page 2.
First of all, let me give you my honest impression of the fiscal year ended March 2021.
The onslaught of infectious diseases has had a tremendous impact on our business, but It was a year in which
we were able to promote change by thinking carefully about what we need to grow, what our group should
strengthen, and what we should stop doing and change through our business activities in this challenging
environment.
Witnessing the rapid changes in the external environment, all employees had a strong sense of crisis, whichenabled us to speed up our structural reforms to correct our high cost structure. More than anything, I think
it is a great achievement for the future that we were able to confirm that the direction of our digital strategy,
which we have been working on for the past several years with an eye on future growth, was not wrong.

FY2021 Results (1) Promoting the CX Strategy
Making progress with “digitalization” and “personalization” efforts: Wacoal (Japan)
 Progress with centrally managing customer
data
24.6％

 The number of people trying 3D measuring
increased due to COVID 19
Changes in the number ofpeople trying 3D Smart & try

Active customer ratio trends

About 52,000

5,000

FY2021 (Jan-Mar)

No. ofpeople4,000
makingnopurchase
within thelast 3,000
5years

Cumulative no. of people（up to Mar 31, 2020）

About 14,000* Introduced to 9 stores as ofthe end of March

Aug

Sep

Oct

Nov

Dec

FY2020

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

FY2021Nov

Dec

Members
About 6.6
millionMembers

25%
New
customers:
800,000
Existing
customers:
800,000
20%

Members

About 38,000 people
Purchase rate during
period: 30%
Average customer
spending: ¥18,600

Jul（About 1.6 million)

About 5.8
million

6,000*Introduced to 16 stores as of theend of March

Jun

20.9％

20.5％

（About 1.3 million)(No. of members making a（About 1 million)（About 920,000)
7,000
purchase in one year/Wacoal
members)

Cumulative no. of people（up to Mar 31, 2021）

May

22.8％

8,000

Jan

Feb

Mar

No. 2,000
ofpeoplemaking a
1,000
purchase
within thelast 50years

Members
About 4.4
million

About 4.9
million15%

WacoalMembers
10%

About
About

2.2
millionAbout

2.4
million

About

2.8

3.6
million5%

million0%
FY2018FY2019FY2020

FY2021

3

Please see page 3.
From this page, I would like to explain the specific results and issues for the fiscal year ended March 2021,
focusing on key points.
The first achievement is that the CX strategy we have been pursuing at Wacoal in Japan has made significant
progress. Wacoal’s CX strategy is the Company’s unique strategy of using digital technology to improve thecustomer’s purchasing experience and create a stress-free purchasing environment, leading to increased sales.
In the past, we have described our strategy as Wacoal’s version of the Omni-channel strategy, but we havechanged the name to the CX strategy from the fiscal year ending March 2022.
First, look at the graph on the left. This is the number of people who have experienced the 3D body scannerservice that was launched in May 2019.
As a result of the adaptation of the service through 3D body scanners to the needs of the society for noncontact, which was born from infectious diseases, the number of people measured has increased significantly.
In addition, about 30% of those who took the measurements ended up making a purchase, contributing to anincrease in sales even as physical stores struggled.
Please see the graph on the right. This table shows the number of customers managed by Wacoal.
In addition to members of our own EC and directly managed stores, we have been promoting the use ofelectronic medical records for customer information from department stores, et cetera. We have been able
to move forward with the centralized management and utilization of these customer data.
By continuing to enhance our capabilities in analyzing and utilizing customer data, we will continue to visualize
consumer needs and apply them to marketing initiatives.

Efforts Aimed at the CX Strategy to Date: Wacoal (Japan)
Growth of own EC
Introduction of avatar service
IT investment amount: FY2021 ¥2.4 billion
Cooperation/linkage between own EC anddirectly managed stores

Introduction of avatar counseling system

Introduction of 3D customer service

FY2017 IT infrastructure development
FY2018 Implementation of CX strategy(Omni-channel Strategy Promotion Department established)

IT investment amount: FY2017 ¥1.5 billion
FY2018 ¥1.9 billion

Information management system
operation(Wacoal and Wing system integration)
IT investment amount: FY2019 ¥2.4 billion
Start cooperation/linkage between directly
managed stores and EC
Launch “Wacoal Carnet” appStart trial introduction of RFID (electronictags) at directly managed stores

Sharing client (department store) customer
data(Migration to electronic records)

Develop omni-channel service infrastructure

Build omni-channel strategy infrastructure- Digitalization of customer data management- Start operation of tablets for customer service
Core IT integration
Cross-brand products,
building inventory data management
system

FY2017 ～FY2018

IT investment amount: FY2020 ¥3.1 billion
Introduction of 3D body scanner system

Establish CX Design Department to utilize
customer data. Start integration of dept.
store, directly managed store, and own EC
customer data.
Start expansion work on distribution center(Complete practical use preparation)
・Operation of centralized data management
system(inventory, products, customer purchasing data)
・Development of next-generation customer
service using body scanners and AI

Implement marketing activities that actively
utilize customer data (directly managed stores,
own EC)FY2019FY2020Complete development of client (dept. store)
customer data infrastructure

FY2021

4

Please see page 4.
For reference, this page describes the history of our CX strategy initiatives to date.
We started working on the CX strategy in the fiscal year ended March 2017, and as you can see, we have taken
steps to build a system to effectively utilize customer data and body shape data.
The goal of the CX strategy is to rebuild deep, broad, and long-lasting relationships with each of our customers.
We did not start this initiative because of an infectious disease, but rather in response to advances in digitaltechnology and changes in customer awareness, and we have been working on this initiative for several years.
We have also been investing aggressively in improving the customer’s purchasing experience and creating a
stress-free purchasing environment, which we believe will benefit both our customers and our company.
We feel that customer-oriented proposals and customer service will become more important in the postcoronavirus world, and we will continue to strengthen our efforts to improve them, which will lead to thegreater results.

FY2021 Results (2) Growing the EC Business
Growing the EC business globally in response to rising demand for EC due to COIVD-19

 FY2021 EC business status at major business units (rate of increase/decrease)
Wacoal (Japan)

Wacoal International (US)Peach John (Japan)*Values for IO Inc. are for reference purposes only
since it was consolidated from Aug of last year.

＋132％

IO Inc.
（Own EC）

Wacoal (Own EC)）

＋91％

Peach John （Own EC）

＋74％

＋68％

＋56％

＋43％

US Wacoal（Own EC）

＋32％

＋44％
＋34％

＋98％
＋72％

＋62％

＋6％

US Wacoal（Specialty EC）

＋34％

＋63％
＋46％
＋42％
＋31％

FY2021 Own EC Sales
About ¥5.6 billion（＋43％）

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

＋4％

FY2021 EC Sales
About ¥7.3 billion- 32％

About ¥3.9 billion for US Wacoal alone (＋27％）*Own EC ratio 50.5％（＋10.7pt）*Own EC ratio 9.8％（＋4.8pt）

＋19％

＋3％

US Wacoal（Specialty EC）

FY2021 Own EC Sales
About ¥8 billion（＋56％）

＋48％

＋33％

*US Wacoal: EC ratio of 54.4％（＋20.7pt）
1Q

2Q

3Q

4Q

5

Please see page 5.
Next, I would like to explain the growth of e-commerce as an outcome of the fiscal year ended March 2021.
While the EC business grew in many countries amid restrictions on brick-and-mortar store operations due toinfectious diseases, the EC businesses of the Wacoal Corp., Peach John Co., Ltd, Wacoal USA, and IO
companies listed here have grown significantly as their efforts to date have borne fruit, as has their CX strategy.
In the next page onward, I will introduce the EC businesses of 3 companies that achieved high growth in thecoronavirus pandemic as topics for the fiscal year ended March 2021.

TOPICS – Wacoal’s Own EC Site Growth
FY2021 Major KPI *Own EC only

Net Sales¥7.97 billion（YoY＋55.8％）*Own EC only

Start cooperation/linkage
with physical stores
Launch in-house project with directly
managed stores and web members to
study a system for mutual customertransfer

Strengthen to link/blend
between online and offline- Canceled secret sales at directly
operated stores and shifted to own
EC- Strengthen personalized actions via
marketing automation

Strengthen chat consulting services thatutilize experienced sales associates

Number ofCustomers Visiting
Our Website
Number of Purchases

Conversion Rate

Order AmountPrice per Order

Number of Purchases
by New Customers

Strengthen support for new lifestyles- Start of “Maternity Remote”
customer service- Increase the number of chatconsultants

Number of Purchases
by Existing
Customers
Number of Purchases
per Customer

FY2020

FY2021↗ YoY +20%
↗ YoY ＋50％
↗ 1.91（＋0.45pt）↗ YoY +50%
↘ About \10,500↗
↗
→ About 1.5times

The number increased due tohigher demand fromconsumers staying home

*The percentage of customers whopurchased more than once increased

6

Please see page 6. First, the growth of Wacoal’s own EC is described.
In addition to its extensive product lineup, Wacoal has been focusing on growth by introducing services thatno other company offers, such as chat consultations with sales representatives.
In the fiscal year ended March 2021, we achieved a high growth rate of 56% compared to the fiscal year ended
March 2020, due in part to the contribution from the strengthening of collaboration with physical stores and
CX strategy initiatives.
Next, we described the trend of KPIs for our own EC for the fiscal year ending March 2021.
Although the unit price per order was lower than in the fiscal year ended March 2020, due to a decline in the
average purchasing age as a result of stronger collaboration with directly managed stores, the number ofvisitors to the site increased for both new and existing customers, and the conversion rate also improved,
resulting in significant sales growth.

TOPICS – Peach John’s Growth
FY2021 Major KPI *Own Domestic EC only

Net sales ¥5.63 billion（YoY＋43.5％）*Own EC Only

Own EC growth
April 2019～
Start structural reforms

Operating profit
margin over 15%
Implement marketing activities thatleverage our “strengths” as a mail-ordercompany

Issues(1) Worsening management efficiency- Continued investment in unprofitablebusinesses- Discounts becoming commonplace- Declining merchandising ability(2) Decrease in new customers‐ Unclear customer target

Number ofCustomers Visiting
Our Website
Number of Purchases

Conversion Rate

Order AmountPrice per Order

Number of Purchases
by New Customers

Measures- Suspend catalog, withdraw from
unprofitable businesses- Review sales methods, curb SALES- Initiatives to link “strengths” tobusiness performance- Increase in new customers- Increase the number of annual
purchases by retaining existingcustomers (CRM activities)

FY2020

FY2021

Number of Purchases
by Existing
Customers
Number of Purchases
per Customer↗ YoY +30%
↗ YoY +45%
↗ 1.91（＋0.16pt）↗ YoY +40%
→ About \9,000↗
↗
↗
The number increased due toour successful marketing
activities, etc.

The number increased due tothe purchases by customer after
a long absence, etc.
Altough the number of times
increased,it didn't reach theplan

7Please see page 7.
Next is Peach John, which saw a significant improvement in its performance.
The factors behind the sluggishness and recovery of the company’s business performance to date are as
explained by the company’s president, Mr. Tochio, at the briefing session held in February 2021.
In addition to the improvement in the cost structure due to the structural reforms undertaken from April 2019,
we suspended the publication of our core catalog business and focused on strengthening our own EC as aweapon to replace it, and the demand from staying home due to infectious diseases expanded, resulting in asignificant improvement in our business performance.
On the left is the trend of KPIs for Peach John’s own EC in Japan, which was the biggest factor in the
improvement in business performance. In addition to creating products that meet the needs of consumers,
our efforts to increase the effectiveness of promotional measures also contributed to a significant
improvement in each indicator.

TOPICS – LIVELY’s Growth
Net sales $31.8 million（YoY＋94.1％）*Own EC only

Made subsidiary at
end of July 2019
(Consolidated from August 2019)LIVELY- A brand that encourages women tolive passionately and confidently

Intimates Online CEO
Michelle Cordeiro Grant

FY2020

FY2021 Major KPI

Aggressive marketinginvestment aimed
at growth
EC Site- Increase the ratio on comfort-orientatedproducts while at the same time introducing“bundle pack,” a system that allows
customers to purchase products with justtwo clicks- Transfer logistics operations to US Wacoal

Expand customer touch points- Launch business with the popular US
chain store “Target” from Feb 2021

FY2021

Number ofCustomers Visiting
Our Website↗

YoY +40%

Number of Purchases↗

New Costomers
75％
Existing Costomers 25％

Conversion Rate↗

3.44（＋0.58pt）

Price per Order↗

About $72（＋$4.3）

Cost of Marketing↗ $18.6million（+15％）

Note: YoY comparisons are against the cumulative results for the last 12 months（Since IO Inc. was newly consolidated from Aug 2019, the values listed are
for reference purposes only)

8

Please see page 8.
I will explain about IO’s LIVELY brand, which has seen particularly strong growth among US EC businesses.
The Group made the company a wholly owned subsidiary in July 2019 and has continued to invest aggressively
in its growth. With a focus on the digital native generation, we are not only steadily increasing the number ofcustomers and maintaining high growth with our know-how and approach that we have never had before,
but the growth of the company is also stimulating other operating companies, and we believe that we areachieving synergy effects.
We expect it to take about 2 more years to turn profitable, but there is a lot of positive news, such as thelaunch of products at the major US retailer, Target, in February 2021, and we are very much looking forward
to the future growth of the brand.
On the right, you can see the trend of KPIs for IO’s EC. Of course, there is the effect of aggressive marketing
expenditures, but the conversion rate is very high, in the mid-3% range, due to the approach using
ambassadors who are fans of the products, and it is characteristic that the increase in visitors to the site canbe efficiently linked to sales.

FY2021 Results (3) Progress on structural reforms
Accelerating structural reforms aimed at improving the high cost structure: Wacoal (Japan)

FY2021 Status

Improve store
profits

Optimize
personnel
expenseOptimizeother costs

Switched about 30 dept. stores
to consumption-basedtransactions（Equivalent to about 23% of department
store over-the-counter sales)

Through personnel planning
management, reduce total
personnel expense by-¥1 billion(progress rate 20%)

Execute thorough cost reductions
in light of deteriorating
business conditions

Specific initiatives for FY2021
 Convert to self-managed stores
 Review sales floor environments（From displays on multiple floors to centralized sales
corners)

 Review business conditions, etc.

（Revise multiplier rates, introduce personnel/store
manager systems)

 Curb hiring of sales associates and parttime workers
 Internal: Transfers/assignments based on
personnel planning External: Start drafting and executing
personnel plans
 Review existing measures and spendingplans across all business areas
 Reduce business trip expenses byintroducing and using audio/videoconferencing systems

Future targets
Aiming to convert
all dept. stores to
consumption-basedby the end of
FY2024

Continue to promote
initiatives（KPIs noted on P14)

9

Please see page 9.
As for the third outcome, I would like to explain the progress of our structural reforms.
In the results for the fiscal year ended March 2021, the reduction of expenses was conspicuous as a result,but as we have explained, we have been able to switch to self-managed stores to improve store profitability
and optimize personnel expenses as described here.
In the fiscal year ending March 2022, we will continue to work toward achieving the targets we have set.

FY2021 Review (4)Issues continuing into the current fiscal year and beyond

1. Addressing and reforming domestic subsidiaries (Nanasai, Ai) whose business environments have deteriorated
significantly due to the impact of COVID-19
2. Establish re-growth strategies in China, where the competitive environment for EC is intensifying, and in Europe,
where the impact of COVID-19 is lingering FY2021 performance (rate of increase/decrease)
Wacoal Europe, China Wacoal

Ai

Nanasai

China Wacoal
EC sales（excl. Peach John)
Underwear business

Product sales business

- 39％
- 41％
- 41％
- 43％

- 10％

- 6％

- 5％

- 26％

- 23％

- 19％

- 41％

- 38％

- 37％

Rental business

±0％

- 56％

3Q

＋4％
- 10％

- 21％

- 16％

Wacoal Europe
Wholesale sales

- 54％
- 60％

1Q

- 51％

- 42％

- 66％

Resort wear
(swimsuits)business

- 70％

4Q

＋4％
- 16％

Ai overall

- 80％

- 80％
2Q

- 13％

- 25％

- 37％

Construction business

1Q

＋7％

- 15％

Nanasai overall

- 50％

＋9％

＋15％

±0％

- 57％
- 50％

China Wacoal
Physical store sales（excl. Peach John）

2Q

3Q

4Q

*China Wacoal settles accounts at the end of Dec
1Q

2Q

3Q

4Q

10

Please see page 10.
We have looked back on our achievements so far, but there are many things that we were unable to addressin the fiscal year ended March 2021, and many new issues that have come up. This page describes 2 of themost important issues that have been carried over to the fiscal year ending March 2022 and beyond.
One is to deal with and reform our domestic subsidiaries whose business environment has changed
significantly due to infectious diseases.
The second is to respond to changes in the market environment in China and Europe, 2 of our major overseas
businesses that have maintained growth to date. First, China has played a role as a growth driver in the past,
but competition with emerging brands in the EC market is intensifying at present, and we feel that we need
to formulate a new growth strategy. In Europe, in addition to formulating a digital strategy for re-growth in
key markets, we believe we need to work on developing new markets.
As the current fiscal year is the year for the formulation of the new Medium-Term Management Plan, we will
discuss these issues as well.

FY2022 Roles andInitiatives

11

FY2022 Roles and Initiatives- A year for “completing structural reforms” aimed at returning to ahighly profitable business structure
Implementationof profit
structurereforms

Promotion of
growth strategy

Promotion ofsustainable
activities

1. Reduce fixed costs
2. Address and reform unprofitable businesses

3. Customer-oriented value chain reform
4. Promote CX strategy
5. Re-identify key business growth issues
6. Strengthen response to human rights
and environmental issues

12

I would now like to explain our roles and initiatives for the fiscal year ending March 2022.
Please see page 12. This section describes the roles and initiatives for the fiscal year ending March 2022.
The current fiscal year is the final year of the current Medium-Term Management Plan, and we havepositioned it as the year to complete structural reforms such as addressing and reforming unprofitablebusinesses in order to return to a highly profitable management structure in the next Medium-Term
Management Plan and beyond. Therefore, we list the implementation of earnings structure reform as one of
the most important initiatives. In addition, we plan to strengthen our growth strategies and sustainable
activities.
In the following pages, I will explain these details.

FY2022 Initiatives - Implementation of profit structure reforms

1. Reduce fixed costs
 Continue to optimize personnel through thorough staff planning andreduce the personnel expense ratio Review cost effectiveness of fixed general expenses（Review/reduce inefficient investment costs)

2. Address and reform unprofitable businesses Re-examine the profit structure for all businesses, and determine theunprofitable businesses to be dealt with
 Act on unprofitable businesses in FY2022 so that they will not be carriedover to the next medium-term management plan（Continue to implement business reforms)

13

Please see page 13.
I would like to explain the earnings structure reform, which is the first of our initiatives for the fiscal year
ending March 2022.
To reduce fixed costs, we will steadily implement the personnel planning and management currently
underway, mainly at Wacoal in Japan, and will also review and reduce inefficient costs by fully examining thecost-effectiveness of general cost reduction.
As for dealing with unprofitable businesses and reforming them, this will be the final year of our structuralreforms, and we will review our operations and reform them to improve profitability during this fiscal year sothat they will not be carried over to the next Medium-Term Management Plan.

FY2022 Initiatives - Implementation of profit structure reforms
Reduce fixed costs and improve profits of existing businesses (KPIs)
Review general expenses (Wacoal)
Amount of

excludingAbout ¥2 billion reduction
growthinvestments

Optimize personnel expenses(Wacoal)About ¥2 billion

Progress rate
about 40%

Effect of profit improvement on
unprofitable businesses

About ¥1.5 billion

Peach John: ¥1 billion
Other businesses:¥500 million

Expected progress for FY2022 profit
structure reforms (vs FY2020)

About ¥5.5
billion～

About ¥10 billion

Improving sales profit ratioBrand consolidation, decrease in no. of item codes
Curb valuation loss by reducing inventory andreturns

Target value of profit
structure reforms by end
of FY2023 (vs FY2020)*Comparison between FY2022 plan figures and FY2020 results*Growth investments for Wacoal, IO Inc., US Wacoal, etc. will increase by about ¥5 billion vs FY2020

14

Please see page 14.
This section describes KPIs for profit structure reform.
As previously announced, the Group has set a target of JPY10 billion for profit structure reform, which we aim
to achieve by the fiscal year ending March 2023.
For the fiscal year ending March 2022, we plan to steadily implement the initiatives listed on the previous
page to reduce fixed costs, improve profitability of unprofitable businesses, and improve the gross profit
margin.
As for the progress plan for the current fiscal year, the second year of the initiative, we have set a target of
JPY5.5 billion or more against the JPY10 billion target for the effect of the profit structure reform. While wewill continue to invest in growth for the future, we will promote greater efficiency in existing businesses thanever before.

FY2022 Initiatives - Promotion of growth strategy
3. Customer-oriented value chain reform: Wacoal reorganization
Implement organizational restructuring to strengthen the ability to respond to customer
purchasing behavior and distribution structures, realize renewed growth, and build a highly
profitable management structure (from April 1, 2020）(1) Review the organization by channel, and shift to a system in which each area has control of all sales channels in its area(2) Integrate product planning to maximize the value provided by each brand and improve the efficiency of planning operations(3) Integrate marketing operations to realize cross-brand/channel advertising strategies and optimize investment

FY2022 Initiatives (Organizational integration issues and processes for solving them)

Verify the ideal form of operational management that improves effectiveness and identify problems in order to generate
results from FY2022 onwardVerify the allocation of brands and products according to customer and area characteristics, and implement flexible personnel
placement accordingly
15

Please see page 15.
I would like to explain our growth strategy, which is the second initiative for the fiscal year ending March 2022.
First, I would like to explain the reorganization of Wacoal that was implemented on April 1, 2021, with theaim of re-growing Wacoal in Japan.
Wacoal has historically operated its business in a channel-specific organizational structure. However, in orderto achieve renewed growth and a highly profitable management structure in response to changes in consumerpurchasing behavior and distribution structure, we have decided that we need to upgrade our sales,
manufacturing, and marketing functions, and to strengthen horizontal collaboration to face increasingly
complex customer issues. Accordingly, we have implemented a business restructuring.
First, in terms of sales, we have integrated the organizations that used to be separated by channel and haveshifted to a system where each area oversees all sales channels. We are also integrating product planning andmarketing operations with the aim of maximizing the value provided by the brands we develop and improving
operational efficiency.
For the current fiscal year, we plan to examine how to improve the effectiveness of organizational
management and identify issues in order to create results under the new Medium-Term Management Plan,as well as examine the placement of brands and products according to customer and area characteristics.

FY2022 Initiatives - Promotion of growth strategy
What Wacoal’s new organization aims to achieve
Implement area marketing(Optimal personnel and product placement
for each area)

Reorganization/newly established (from April 2021）
Sales Division

Improve store profits and centralize

Directly managed stores

inventory management

Department stores
Mass retailers
Specialty stores

LTV improvement
Ensure loyalty ofexisting customers

Acquire newcustomers

Link/blend online and offline channels(Offer a stress-free shopping experience)
Establish a sales system that balances the selfmanaged business and the wholesale business
Consolidate core brands and strengthen marketing(Maximize the value offered by the brand )Utilizecustomer
data

Human
ChemicalResearch
Institute

Customerdata base

Web Sales
Division

Developorganizational
infrastructure to
support growth
Ensureemployeehealth & safety
Work style reform

Technology
andProduction
Division

Work style reform
including DX andremote work
Human resource
development strategy
Review of skills/roles
Promote transfer ofauthority

Brand
Group
Linked planning /MD / marketing

Develop products
customers want
Improve manufacturing
profitability

Reorganization/newly established (from April 2021）

Foster a highly
rewardingorganizational
culture16

Please see page 16.
The diagram below shows the vision that Wacoal aims to achieve through the organizational restructuring I
have just described.
In addition to the Sales division, Brand Group, and Marketing Management division, which consolidate thedecentralized organizations, the Web Sales division, Human Chemical Research Institute, and Technology andProduction division will all use customer data as a starting point for upgrading their respective operations.
In addition, we aim to transform ourselves into an organizational entity that shares information across theentire supply chain and works together to solve increasingly complex and diverse social and customer issues.
The results we hope to achieve through these efforts are listed on the left.
We would like to acquire new customers, make existing customers loyal customers, and improve businessefficiency by practicing area marketing, linking online and offline, building a sales system that considers thebalance between self-managed business and wholesale business, improving store profitability, andconsolidating the number of members.
In addition, in order to increase the effectiveness of the new organization, it is essential to foster a highly
motivating organizational culture. We will also continue to focus on the reform of work styles and humanresource development.

FY2022 Initiatives - Promotion of growth strategy
4. Promote CX strategy
Wacoal: Promote CX strategy to build “deep, broad, and long-lasting”
relationships with customers
 Improve customer experiences via “integration of on/offline services” and “customer data utilization,” etc.
 Expand new areas of business via the development of new technology and collaboration with othercompanies, etc.

Overseas: In addition to Europe, the US, and China, implement the CX
strategy in Asia, where rapid EC growth is expected US Wacoal: Expand own EC by promoting “Digital First Strategy”
 IO Inc.: Verify optimal marketing mix and improve efficiency of advertising investment
 Wacoal Europe: Promote marketing using 3D Smart & Try
 China: Improve sales per physical store and continue EC expansion by acquiring new customers

 Asia: Expand business in India and develop new customers through a common EC platform

17

Please see page 17.
We will continue to strengthen our efforts in the CX strategy.
First, in Japan, Wacoal will continue to enhance the value of the customer experience and improve profitability
by continuing initiatives such as the integration of online and offline activities and the utilization of customer
data. We will also strive to develop new services that utilize 3D measurement technology, and we will take on
the challenge of expanding our business domain by actively developing collaborations with other industries.
Overseas, the key to growth will be to strengthen EC. In addition to advancing EC strategies tailored to thecircumstances of each country, we will implement CX strategies to enhance the value of the customer
experience and lead to growth.

FY2022 Initiatives - Promotion of sustainable activities
5. Re-identify key business growth issues
 Promote “ESG Management” to create future “growth opportunities” by addressing increasingly complex social
issues Identify key ESG issues to achieve sustainable growth and enhance corporate value Set long-term targets aimed at solving problems(Launched the “Sustainability Promotion Project” with the participation of both management and employees)

6. Strengthen response to human rights and environmental issues
 Calculate emissions and set reduction targets for greenhouse gases, and establish management processes
accordingly
 Examination/formulation of Group-wide human rights policy that is compatible with the “Action Plan for
Business and Human rights”

 “Formulate Environmental Standards to Guide Product and Material Development,” and “Establish a System
to Manage the Progress of Each Division”
 Ongoing promotion of CSR procurement activities

18

Please see page 18.
The third initiative for the fiscal year ending March 2022 is to promote sustainable activities.
After the infectious disease, the social environment surrounding our group has changed drastically. In addition,
the issue of global warming is becoming more serious, and consumers’ values and awareness of sustainability
are evolving.
Going forward, the Group plans to make ESG management a pillar of its long-term strategy, viewing efforts toaddress increasingly complex and diverse social issues as an opportunity for future growth, and aiming for
growth based on the creation of both social and economic value.
In our sustainability activities for the current fiscal year, we plan to re-identify key ESG issues to achievesustainable growth and set long-term targets to resolve these issues.
We also plan to strengthen our efforts on key issues, such as governance, human rights, and the environment.
In April this year, we launched a sustainability promotion project with the participation of both management
and employees and have begun discussing important issues to achieve sustainable growth and increase
corporate value.
We are also investigating greenhouse gas emissions throughout our supply chain and hope to announce our
reduction targets by the end of this fiscal year.

New Medium-Term Management Plan (FY2023～)

To be announced around May 2022 (planned)

19

Please see page 19.
In the fiscal year ending March 2022, we will be finishing up our structural reforms, so our top priority is tomake steady progress on what I have explained today. In parallel, we will also have a thorough discussion on
our medium- and long-term strategies for future growth and the next Medium-Term Management Plan.
Earlier, I explained that we have launched a sustainability promotion project with the participation of bothmanagement and employees. I would like to discuss and develop a plan together with my employees on whatkind of existence the Wacoal Group should evolve into in order to be needed by society 10 or 30 years fromnow.
The timing of the explanation of the new Medium-Term Management Plan to you will be around May 2022.
In addition to financial results briefings, we are also considering holding business briefings and small meetings
in the current fiscal year. We will inform everyone as soon as the schedule is decided.
This concludes my explanation. Thank you very much for your attention.