Consolidated Financial Statements for the Fiscal Year Ended March 31, 2019 (U.S. Accounting Standards)[Translation]
May 15, 2019
Listed Company: Wacoal Holdings Corp.
Stock Exchanges: Tokyo (1st section)
Code Number: 3591 URL: http://www.wacoalholdings.jp/
Representative: (Position) Representative Director and President(Name) Hironobu Yasuhara
For Inquiries:(Position) Director, General Manager of Corporate Planning(Name) Akira Miyagi
Tel: +81 (075) 682-1010
Scheduled date of Ordinary Shareholders’ Meeting: June 27, 2019
Scheduled Commencement Date of Dividend Payment: June 4, 2019
Scheduled date of Annual Securities Report Filing: June 27, 2019
Supplementary materials regarding Annual Business Results: Yes
Explanatory meeting regarding Annual Business Results: Yes(Amounts less than 1 million yen have been rounded.)1.

Consolidated Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 – March 31, 2019)(1) Consolidated Business Results(% indicates changes from previous fiscal year)

Net Sales

Operating Income

Income Before Income
Taxes and Equity in Net
Income of AffiliatedCompanies

Net Income
Attributable to Wacoal
Holdings Corp.

Millions of Yen %Millions of Yen %Millions of Yen %Millions of Yen %194,201 (0.8)
4,879(57.6)
2,203(84.6)
341 (96.5)
195,725 (0.1)
11,49411.8
14,286(13.8)
9,745 (22.2)
Fiscal Year ended March 31, 2019: (5,046) million yen (- %)Fiscal Year ended March 31, 2018: 16,448 million yen (33.8 %)(Note) Reclassification adjustments have been made to the consolidated statements of income for the fiscal year ended March 31, 2018
pursuant to the changes in accounting principles. For details, please see “3. Consolidated Financial Statements and Accompanying Notes (7)Basic Significant Matters in Preparation of Consolidated Financial Statements” on page 17.
Fiscal Year Ended March 31, 2019
Fiscal Year Ended March 31, 2018
(Note) Comprehensive income:Ratio of Income
Before Income
Ratio of Net Income
Net Income
Diluted Net Income
Taxes and
Ratio of
Attributable toAttributable toAttributable toEquity in Net
OperatingWacoal Holdings
Wacoal Holdings
Wacoal Holdings
Income ofIncome to Net
Corp. toCorp. Per ShareCorp. Per Share
AffiliatedSales
Shareholders’ Equity
Companies toTotal Assets
Yen
Yen
%
%
%
Fiscal Year Ended March 31, 2019
5.16
5.14
0.2
0.8
2.5
Fiscal Year Ended March 31, 2018
143.46142.984.2
4.8
5.9(Reference) Equity in net income of affiliated companies:
Fiscal Year ended March 31, 2019: 725 million yen
Fiscal Year ended March 31, 2018: 916 million yen(Note) We have conducted a share consolidation of common stock of Wacoal Holding Corp. (the “Company”) pursuant to which two (2)shares were consolidated into one (1) share effective as of October 1, 2017. Accordingly, the “net income attributable to Wacoal Holdings
Corp. per share” and the “diluted net income attributable to Wacoal Holdings Corp. per share” have been calculated assuming that such shareconsolidation has been conducted at the beginning of the previous fiscal year.
(2) Consolidated Financial Condition

Total Assets

Fiscal Year Ended March 31, 2019
Fiscal Year Ended March 31, 2018

Total Equity(Net Assets)

Millions of Yen Millions of Yen
281,767
221,144298,534
237,497

Total Shareholders’ Total Shareholders’EquityEquity Ratio
Millions of Yen
216,494
232,712

%
76.8
78.0

Shareholders’EquityPer ShareYen
3,321.57
3,454.40(3) Consolidated Cash Flow Status

Fiscal Year Ended March 31, 2019
Fiscal Year Ended March 31, 2018

Cash Flow provided Cash Flow provided by Cash Flow provided by Balance of Cash and Cashby Operating(used in) Investing(used in) Financing
Equivalents at End of Fiscal
Activities
Activities
Activities
Year
Millions of Yen
Millions of Yen
Millions of Yen
Millions of Yen
13,620(2,474)(10,872)
30,133
15,493(7,362)(12,303)29,487-1-

2.

Status of Dividends

Annual Dividend
End ofFirst
Quarter

End ofSecondQuarter

End ofThird
QuarterYear-end

Annual

Yen

Yen

Yen

Yen

Yen

Total
Amount ofDividends(annual)Millions of
Yen
4,871
4,732

Payout Ratio(consolidated)

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

Fiscal Year Ended March 31, 2018
18.00
36.00
50.2
2.1
Fiscal Year Ended March 31, 2019
36.00
36.00
72.00
1,395.3
2.1
Fiscal Year Ending March 31,
40.00
40.00
80.00
57.9
2020 (Estimates)(Note) We have conducted a share consolidation of common stock of the Company pursuant to which two (2) shares were consolidated intoone (1) share effective as of October 1, 2017. Please note that such share consolidation is taken into consideration in determining the amountof the year-end cash dividend per share for the fiscal year ended March 31, 2018 mentioned above and the total annual dividend amount isindicated as “-”. The year-end cash dividend per share and total annual dividend amount per share for the fiscal year ending March 31, 2018,
without taking into consideration of the share consolidation, are 18 yen and 36 yen, respectively.
(Note) Breakdown of the end of second quarter cash dividend per share for the fiscal year ending March 31, 2020 (Estimates):
Ordinary dividend: 36.00 yen
Special anniversary dividend: 4.00 yen
Breakdown of the year-end cash dividend per share for the fiscal year ending March 31, 2020 (Estimates):
Ordinary dividend: 36.00 yen
Special anniversary dividend: 4.00 yen
3.

Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)

Net Sales

AnnualMillions of Yen %200,000 3.0(% indicates changes from the previous fiscal year)
Income Before
Income Taxes andNet Income
Net Income
Equity in Net
Attributable toAttributable toOperating Income
Income of
Wacoal Holdings
Wacoal Holdings
AffiliatedCorp.
Corp. Per Share
Companies
Millions of Yen %Millions of Yen %Millions of Yen %Yen
11,000 125.5
12,000 444.7
9,000 138.08*Notes(1) Changes in significant subsidiaries during the fiscal year ended March 31, 2019 (change in scope of consolidation): None
New: None
Excluded: None
(Note) For details, please see “3. Consolidated Financial Statements and Accompanying Notes (7) Basic Significant Matters in
Preparation of Consolidated Financial Statements” on page 16.
(2) Changes in Accounting Principles:(i) Changes due to modifications in accounting standards, etc.: Yes(ii) Changes other than (i) above: None
(Note) For details, please see “3. Consolidated Financial Statements and Accompanying Notes (7) Basic Significant Matters in
Preparation of Consolidated Financial Statements” on page 17.
(3) Number of Issued Shares (Common Stock)
Fiscal Year Ended
Fiscal Year Ended
March 31, 2019
March 31, 2018(i)
Number of issued shares (including treasury stock) as of period-end:
70,689,042 shares
71,689,042 shares(ii) Number of shares held as treasury stock as of period-end:
5,510,891 shares
4,322,121 shares(iii) Average number of shares during the period:
66,143,405 shares
67,928,557 shares(Note) We have conducted a share consolidation of common stock of the Company pursuant to which two (2) shares wereconsolidated into one (1) share effective as of October 1, 2017. Accordingly, the “average number of shares during the period” hasbeen calculated assuming that such share consolidation has been conducted at the beginning of the previous fiscal year.

-2-

(Reference) Summary of Non-consolidated Results1.

Non-consolidated Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 – March 31, 2019)(1) Non-consolidated Business Results

Fiscal Year Ended March 31, 2019
Fiscal Year Ended March 31, 2018

Net Sales
Millions of Yen %15,71524.3
12,644(3.8)

Operating Income
Millions of Yen %11,792
38.0
8,546
(7.5)

(% indicates changes from previous fiscal year)
Ordinary Income
Net Income
Millions of Yen %Millions of Yen %11,255
78.4
5,968
(7.6)
6,308
(31.5)
6,461(43.6)Net Income
Diluted Net Income
Per Share
Per Share
Yen
Yen
Fiscal Year Ended March 31, 2019
90.24
89.91
Fiscal Year Ended March 31, 2018
95.12
94.47
(Note) We have conducted a share consolidation of common stock of the Company pursuant to which two (2) shares were consolidated intoone (1) share effective as of October 1, 2017. Accordingly, the “net income per share” and “diluted net income per share” have been
calculated assuming that such share consolidation has been conducted at the beginning of the previous fiscal year.
(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, 2019
154,554
134,81386.9
2,060.13
Fiscal Year Ended March 31, 2018
160,086
140,51087.5
2,078.38(Reference) Equity Capital: As of the end of the fiscal year ended March 31, 2019: 134,275 million yen
As of the end of the fiscal year ended March 31, 2018: 140,013 million yen(Note) Because the presentation method was changed pursuant to the application of the ASBJ Statement No. 28 Partial Amendments to
Accounting Standard for Tax Effect Accounting (February 16, 2018) from the fiscal year ended March 31, 2019, the non-consolidated
financial condition for the fiscal year ended March 31, 2018 shows the numbers after such accounting standard has been applied retroactively
thereto.
*These financial statements are not subject to audit procedures by the certified public accountants or the independent auditor.
*Cautionary Statement regarding Forward of Business Results(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.

-3-

Table of Contents for Attached Materials
1.

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

Business Results for Fiscal Year 2019 ------------------------------------------------------------------------------------------------------------ 5(2)

Financial Condition as of Fiscal Year 2019 ------------------------------------------------------------------------------------------------------- 8(3)

Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2019 and Fiscal Year 2020 ----------------------------- 92.

Basic Policies regarding Selection of Accounting Standards----------------------------------------------------------------------------------- 93.

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

Consolidated Balance Sheets ---------------------------------------------------------------------------------------------------------------------- 10(2)

Consolidated Statements of Income--------------------------------------------------------------------------------------------------------------- 12(3)

Consolidated Statements of Comprehensive Income ------------------------------------------------------------------------------------------- 13(4)

Consolidated Statements of Equity ---------------------------------------------------------------------------------------------------------------- 14(5)

Consolidated Statements of Cash Flows ---------------------------------------------------------------------------------------------------------- 15(6)

Notes on Going Concern --------------------------------------------------------------------------------------------------------------------------- 16(7)

Basic Significant Matters in Preparation of Consolidated Financial Statements ------------------------------------------------------------ 16(8)

Notes to the Consolidated Financial Statements ------------------------------------------------------------------------------------------------ 17-4-

Qualitative Information and Financial Statements
1.

Business Results(1) Business Results for Fiscal Year 2019(i) Results for the Fiscal Year Ended March 31, 2019

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

Previous Fiscal Year(ended March 2018)
Amount195,725
92,032
103,693
92,701(708)
206

Current Fiscal Year(ended March 2019)
Amount194,201
89,804
104,397
93,684
5,834(Millions of Yen)
Increased/(Decreased) fromprevious fiscal year
Amount%(1,524)(0.8)(2,228)
(2.4)
704
0.7
983
1.1
708
5,628
-

11,494
2,789
3

4,879
2,894
(5,570)(6,615)105(5,573)(57.6)
3.8-

14,2862,203(12,083)(84.6)

9,745

341(9,404)(96.5)

11,70010,713

(987)

(8.4)

14,48913,607

(882)

(6.1)

During the current fiscal year (from April 1, 2018 to March 31, 2019), which is the last year of our current mid-term (3 year) business plan(from fiscal year 2017 to fiscal year 2019), in order for our business to return to growth during the period covered by our next mid-term businessplan, our group proceeded to build the foundation to enhance our business efficiency and to invest in fields where we can expect growth.
Wacoal Corp. improved business efficiency in our wholesale business through reorganization and profitability of our retail business throughimproved brand value, and completed preparation for introduction of 3D body scanning and AI (artificial intelligence)-based customer service
as a part of our omni-channel strategy. In the overseas markets, we have strengthened our business framework in response to the e-commercechannels, which continue to show a high rate of growth in sales, and expanded our brand awareness in Chinese and European markets. On theother hand, in improving the production base, we were successful in enhancing the production capability of highly competitive products in
Dalian and Vietnam, while the structural reform in the raw materials factory in Thailand required time.
Our consolidated sales for the current fiscal year fell by 1% from such sales for the previous fiscal year. While e-commerce sales from ourbusiness in China expanded and sales from Nanasai Co., Ltd. (“Nanasai”) showed significant growth resulting from its active construction
business, overall sales were affected by the slow growth in our domestic wholesale business of Wacoal Corp. due to weak sales fromdepartment stores and decreased revenue from our domestic consolidated subsidiaries, including Lecien Corporation (“Lecien”), Ai Co., Ltd.,
Peach John Co., Ltd. (“Peach John”), due to delays in addressing market changes.
Consolidated operating income decreased by 58% as compared to such consolidated operating income for the previous fiscal year. Thisdecrease was due to the impact of the recognition of the impairment charges on goodwill and other intangible assets with respect to Peach John,
while Wacoal Corp. recorded an increase in profit as a result of a record-high gross profit rate with improved business efficiency and ouroverseas business recorded an increase in profit as a result of an increase in revenue.
Ever since 2008 when Peach John became a wholly owned Wacoal subsidiary, the demand for undergarments, which strongly reflects
consumer trends, decreased, and the size of the market for catalog mail-order business declined, and due to failure to achieve the anticipatedgrowth expansion, we have recorded impairment charges on intangible assets several times. Although we have formed a growth plan underwhich we have made efforts to change the brand image, strengthen product development, invest resources into our retail sales and e-commerce
sales, as well as expand our business overseas, we did not achieve profitability. As a result of our reevaluation of fair value of goodwill andtrademarks in connection with our consideration of the current forecast of business results, we ended up recording impairment charges of 5.64
billion yen on intangible assets after a series of assessments.

-5-Consolidated income before income taxes and equity in net income of affiliated companies fell by 85% from such consolidated income forthe previous fiscal year, due to recognition of valuation loss on marketable securities and investments of 5.57 billion yen following the changes
in accounting policy (please see “3. Consolidated Financial Statements and Accompanying Notes (7) Basic Significant Matters in Preparationof Consolidated Financial Statements (v) Changes in Accounting Policy” on page 17), in addition to a decrease in operating profit.
As a result of the above, the ratio of operating income to net sales and the ratio of net income attributable to Wacoal Holdings Corp. toshareholders’ equity for the current fiscal year were, 2.5% and 0.2%, respectively. The key exchange rates used for the current fiscal year
(previous fiscal year) were: 110.91 yen (110.85 yen) to the U.S. dollar; 145.68 yen (147.03 yen) to the Sterling pound; and 16.72 yen (16.63
yen) to the Chinese yuan.
(ii) Business Overview of Our Operating Segments

Total Net Sales
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other

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

a.

(Millions of Yen)
Increased/(Decreased) fromprevious fiscal year

Previous Fiscal Year(ended March 31, 2018)
Distribution
AmountRatio (%)
195,725100
116,085
59.3
51,88826.5
10,795
5.5
16,957
8.7

Current Fiscal Year(ended March 31, 2019)
Distribution
AmountRatio (%)
194,201100
113,400
58.4
53,10027.3
10,491
5.4
17,2108.9Previous Fiscal Year(ended March 31, 2018)

Current Fiscal Year(ended March 31, 2019)

Increased/(Decreased) fromprevious fiscal year

Amount% to Sales

Amount% to Sales

Amount

%

5.9
5.9
7.4
4.1
2.1

4,879
6,325
4,581
(5,859)
(168)

2.5
5.6
8.6
-

(6,615)(520)
729(6,300)(524)(57.6)
(7.6)
18.9
-

11,494
6,845
3,852
441
356

Amount%(1,524)(2,685)
1,212
(304)
253

(0.8)
(2.3)
2.3
(2.8)
1.5

Wacoal Business (Domestic)

Sales attributable to our “Wacoal Business (Domestic)” segment decreased by 2% as compared to such sales for the previous fiscal year.
As a result of developing high-value-added products that are comfortable and have good design for both “Wacoal” and “Wing” brand products,
sales of our core brassieres products in our wholesale business of Wacoal Corp. were strong. However, overall sales from our wholesale
business decreased due to weak sales of nightwear, maternity innerwear, junior’s innerwear, as well as weak sales of “CW-X” brand products.
In our retail business, although overall sales were driven by sales of our wireless brassieres “BRAGENIC”, which showed significant growththroughout the year, sales increased only slightly in our retail business as a result of a reduced volume of sale discounts intended to improve
profitability and a decrease in sales worsened by extension of the expiration period for points earned under the customers’ loyalty program, etc.
Sales from Ai Co., Ltd. decreased by 18% as compared to such sales for the previous fiscal year, as we were significantly affected by the weaksales from our core swimwear business in the summer season, which is the period of peak demand.
Operating income decreased by 8% as compared to such operating income for the previous fiscal year. While Wacoal Corp. recorded anincrease in operating profit as a result of improving the gross profit rate, operating income was affected by the one-time increase in profit
recorded in the previous fiscal year in respect of the one-time compensation income from leaving a factory space occupied by our subsidiary.
b.

Wacoal Business (Overseas)

Overall sales attributable to our “Wacoal Business (Overseas)” segment on the Japanese Yen basis increased by 2% as compared to suchsales for the previous fiscal year. Sales on a local currency basis decreased by 1% from Wacoal International Corp. (the United States),increased by 2% from Wacoal Europe, and increased by 10% from Wacoal China Co., Ltd. as compared to such corresponding sales for theprevious fiscal year. In the United States, while e-commerce sales through our e-commerce website and third-party e-commerce websites werestrong, sales were affected by the weak over-the-counter sales at department stores (physical stores) and closings of certain department storesthat went bankrupt. E-commerce sales in Europe showed significant growth along with the strong sales of our plus-size brand “elomi”, despite
the impact of the inventory adjustments at certain department stores in the United Kingdom, where business conditions deteriorated. In China,
we enhanced our customer data marketing and distribution system, and expanded growth through third-party e-commerce websites.
Over-the-counter sales at department stores were also strong as a result of our successful sales promotion conducted during China’s
high-demand seasons.
Operating income on a Japanese yen basis increased by 19% as compared to such operating income for the previous fiscal year. Positive
factors attributable to the increase in the operating income include: increased revenue, an improvement in inventory efficiency, and an-6-

improvement in the gross profit rate resulting from a higher percentage of e-commerce sales in China; reevaluation of suggested retail price andclosings of our unprofitable directly managed retail stores in the United Kingdom; productivity enhancement in our factory in Vietnam; gain onsale of property related to raw materials factory in Thailand; and the absence of one-time impairment charges recorded during the previous
fiscal year.
c.

Peach John BusinessOverall sales attributable to our “Peach John Business” segment fell by 3% as compared to such sales for the previous fiscal year. Thisdecrease was due to poor sales from our own e-commerce website and failure to expand the number of customers visiting our domestic retailstores, although we made efforts to develop products and cultivate sales channels that respond to changes in the market trend. On the other
hand, sales in Taiwan, where we commenced operations in May 2017, increased by 34% for the current fiscal year as a result of the expansionof brand awareness through events and blogs.
Operating income was affected by decreased revenue from our domestic business, weak growth from our Chinese business resulting fromaggressive competition, an increase in labor costs to retain personnel and distribution expenses, as well as the impact of non-recurring expenses
incurred for the relocation of the head office. As a result, we recorded an operating loss of 0.22 billion yen, as well as impairment charges of
5.64 billion yen on goodwill and other intangible assets.
d.

Other

Overall sales attributable to our “Other” segment increased by 2% from such sales for the previous fiscal year. Sales from Lecien
decreased by 10% from such sales for the previous fiscal year. This was due to weak sales of our core innerwear business, which was affectedby a decrease in the number of our private products handled at general merchandise stores, as well as sales from our material business, art &hobby business and apparel business which were also weak. On the other hand, Nanasai was successful in receiving new orders for interior
finishes, in addition to renovating a major department store’s headquarters, and as a result, sales from Nanasai increased by 14% as comparedto such sales for the previous fiscal year due to significant growth in our construction business along with an expansion in our sales business.
Although gross profit rate decreased due to higher percentage of construction business at Nanasai, we recorded an increase in operating
income resulting from increased revenue. However, we recorded an operating loss for our “Other” segment in total as the amount of operating
income from Nanasai was not enough to offset the amount of operating loss recorded with regard to Lecien.
(iii) Forecast for Next Fiscal Year
Consolidated Net Sales and Operating Income
Fiscal Year ended March 2019
Consolidated Net Sales
Operating Income
Income before income taxes andequity in net income of affiliatedcompanies
Net income attributable to
Wacoal Holdings Corp.

Amount194,201
4,879
2,203

341

Fiscal Year ended March 2020

% to Sales
2.5
1.1

Amount200,000
11,00012,000% to Sales
5.5
6.0

0.2

9,000

4.5

(Millions of Yen)
Increased/(Decreased) fromprevious fiscal year
Amount
%
5,799
3
6,121
125.5
9,797
444.7

8,659

-

Our forecast for the next fiscal year (ending March 2020) is shown in the above table. The impact of the changes in the valuation loss orgain on marketable securities and investments to our business results is not reflected in the forecast above. The exchange rate used for the U.S.
dollar is 110,00 yen to the dollar; the exchange rate used for the Sterling pound is 145.00 yen to the pound; and the exchange rate used for the
Chinese yuan is 16.50 yen to the yuan.
We continue to move forward with efforts to become “Wacoal of the World as a Group”, that is, to continue to offer pioneering products
to the global markets by taking full advantage of our management resources and our group’s network, and to gain reputation for our reliability
from stakeholders around the world on our group’s products and services as well as our commitments to social issues by cultivating new market
opportunities for the undergarment industry.
We are currently drafting our mid- to long-term strategy visions, and we mark the three years (from fiscal year 2020 to fiscal year 2022) as
the period to achieve the following major goals:-

Achieve strong growth in Japan and overseas
Examine the potential of unprofitable businesses and brands, and promote review and structural reform of group businesses where nobusiness will be safe from such review or structural reform
Enhance corporate value by improving economic and social values-7-In the middle of June, 2019, we plan to announce our new three-year mid-term business plan, along with the details of the businessstrategies for the next fiscal year ending March 31, 2020, which will be the first year of the new three-year mid-term business plan.
(2) Financial Condition as of Fiscal Year 2019
Status of Assets, Liabilities and Shareholders’ Equity
Our total assets as of March 31, 2019 were 281,767 million yen, a decrease of 16,767 million yen from the end of the previous fiscal
year, mainly due to decreases in investments at market value and impairment charges on goodwill.
With regard to liabilities, our current liabilities were 60,623 million yen, a decrease of 414 million yen from the end of the previous
fiscal year, due to decreases in accounts payable and deferred income taxes, despite increases in short-term bank loans and recognition ofrefund liability.
Shareholders’ equity was 216,494 million yen, a decrease of 16,218 million yen from the end of the previous fiscal year, due to cash
dividend payments, repurchase of treasury stock and decrease in pension liability adjustments.
As a result of the above, our total shareholders’ equity ratio as of March 31, 2019 was 76.8%, a decrease of 1.2% from the end of theprevious fiscal year.
Cash Flows Status
Cash flow provided by operating activities:
Cash flow provided by operating activities was 13,620 million yen, a decrease of 1,873 million yen as compared to the previous fiscal
year, after adjustments for changes in assets and liabilities to our net income of 395 million yen plus adjustments for depreciation expenses anddeferred taxes.
Cash flow used in investing activities:
Cash flow used in investing activities was 2,474 million yen, a decrease of 4,888 million yen as compared to the previous fiscal year,
due to cash outflows such as capital expenditures and payments to acquire intangible assets, which exceeded cash inflows such as sale of equity
securities.
Cash flow used in financing activities:
Cash flow used in financing activities was 10,872 million yen, a decrease of 1,431 million yen as compared to the previous fiscal year,
due to repurchase of treasury stock and cash dividend payments.
As a result, the balance of cash and cash equivalents at the end of fiscal year 2019, calculated by adding the exchange difference on
cash and cash equivalents to the above total, was 30,133 million yen, an increase of 646 million yen as compared to the end of the previous
fiscal year.
Free cash flow, which was calculated by subtracting the amount of capital investment from the cash flow provided by operating
activities, amounted to 7,837 million yen.
Trends in certain cash-flow indicators

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

Fiscal Year
Ended
March 31, 2017

Fiscal Year
Ended
March 31, 2018

Fiscal Year
Ended
March 31, 2019

77.2

78.0

76.8

63.9

69.5

63.7

0.5

0.5

0.6

605.6

1,408.5

1,238.2

Shareholders’ equity ratio = shareholders’ equity/total assets
Shareholders’ equity ratio based on the market value = aggregate market value of shareholders’ equity/total assets
Debt redemption years = interest-bearing debt/cash flow provided by operating activities
Interest coverage ratio = cash flow provided by operating activities/interest payment
Interest payment = “cash paid for interest” as described in the additional cash flow information following the consolidated statementsof cash flows-8-(3) Basic Policy Regarding Distribution of Profits and Dividends for Fiscal Year 2019 and Fiscal Year 2020
Our basic policy on profit distributions to shareholders is to make stable distributions based on consideration of our consolidated
performance, while seeking to increase our enterprise value through active investments aimed at higher profitability and to increase net income
per share. With respect to retained earnings, we have actively invested and will continue to actively invest in expanding our customer bases forour domestic business and our overseas businesses, with the aim of improving our corporate value. We also plan to use our retained earnings
for strategic investments for maintaining competitiveness and reinforcing growth. With these efforts, we seek to benefit our shareholders by
improving future profitability.
We also intend to acquire treasury stock in a flexible manner taking into account the level of free cash flow as well as the market
environment, and will make effort to improve capital efficiency and return profits to our shareholders.
Based on this policy, we are scheduled to distribute 36.00 yen per share as a year-end dividend for the current fiscal year, the estimateddividend as announced during the latest quarter, and the annual cash dividend per share will be 72.00 yen, including the interim dividend pershare of 36.00 yen.
For the next fiscal year ending March 31, 2020, we plan to declare a special dividend for the 70th anniversary of our foundation, and theannual cash dividend per share will be 80.00 yen, the total of interim and year-end dividend per share of 40.00 yen (ordinary dividend of 36.00
yen, and special anniversary dividend of 4.00 yen), respectively.
In the middle of June, 2019, we plan to announce our new three-year mid-term business plan, with the first year starting fiscal year ending
March 31, 2020. We also plan to announce our new financial strategies including the basic policy regarding distribution of profits anddividends.
2.

Basic Policies regarding Selection of Accounting Standards

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

-9-

3.

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

Accounts

As of March 31, 2018

As of March 31, 2019

(Assets)

Millions of Yen

Millions of Yen

Cash and cash equivalents

29,48730,133Time deposits

4,296

4,004

(292)

Marketable securities

1,567

446

(1,121)

Notes and accounts receivable
Allowance for returns anddoubtful receivables
Inventories

25,87324,989(884)(2,459)42,676(229)
42,508

2,230
(168)

I. Current assets

Return assets

646

-

1,180

1,180

4,372

4,985

613

105,812

108,016

2,204

Land

21,561

21,549(12)

Buildings and building improvements

73,61874,033415

Machinery and equipment

18,26818,914646

Construction in progress

254

478

224

113,701

114,974

1,273(59,368)(61,704)(2,336)54,33353,270(1,063)

Investments in affiliated companies

22,512

21,859(653)

Investments

69,31863,372(5,946)

Goodwill

16,594

11,954(4,640)

Other intangible assets

12,85912,297(562)

Prepaid pension expense

10,178

3,990(6,188)Deferred income taxes

1,194

1,362

168

Other

5,734

5,647

(87)

138,389

120,481(17,908)

298,534

281,767(16,767)

Other current assets
Total current assets
II. Property, Plant and Equipment

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

Total other assets
Total Assets- 10 -

Accounts

As of March 31, 2018

As of March 31, 2019

(Liabilities)

Millions of Yen

Millions of Yen

AmountIncreased/(Decreased)
Millions of Yen

7,104

8,116

1,012

Trade notes

1,174

1,155

(19)

Trade accounts

11,393

10,638(755)

Other payables

7,053

6,548

(505)

19,62018,341(1,279)Accrued payroll and bonuses

7,213

7,209

(4)

Income taxes payable

1,979

2,759

780

-

3,482

3,482

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

Refund liabilities
Current portion of long-term debt
Other current liabilities
Total current liabilities

50

50

-

3,666

3,905

239

39,632

43,862

4,230

138

88

(50)

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

1,852

1,828

(24)

17,231

12,567(4,664)

Other long-term liabilities

2,184

2,278

94

Total long-term liabilities

21,405

16,761(4,644)

Total liabilities

61,03760,623(414)

I. Common stock

13,26013,260-

II. Additional paid-in capital

29,76529,807

42

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

172,418

193,139

20,721

2,274

1,551

(723)

27,424-(27,424)(Equity)

Unrealized gain on securities
Pension liability adjustments(1,101)(5,679)(4,578)

V. Treasury stock, at cost
Total Wacoal Holdings Corp.
shareholders’ equity
VI. Noncontrolling interests
Total equity(11,328)(15,584)(4,256)

232,712

216,494(16,218)

4,785
237,497

4,650
221,144(135)(16,353)

298,534

281,767(16,767)

Total liabilities and equity- 11 -

(2) Consolidated Statements of Income

Accounts

I.

Fiscal Year Ended
March 31, 2018

Fiscal Year Ended
March 31, 2019

Millions of Yen%

195,725

100.0

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

92,032

206

0.1

Total operating costs and expenses

184,231

94.1

11,494

5.9

4,879

Net Sales

Millions of Yen

AmountIncreased/(Decreased)%

Millions of Yen

194,201

100.0(1,524)47.0

89,80446.3(2,228)92,701

47.4

93,684

48.2

983

(708)

(0.4)

-

-

708

5,834

3.0

5,628

189,322

97.5

5,091

2.5

(6,615)

II. Operating costs and expenses

Operating income
III. Other income (expenses)
Interest income

194

289

95

Interest expense

(10)

(11)

(1)

Dividend income
Gain (loss) on sale or exchange ofmarketable securities and investments– net
Valuation gain (loss) on marketablesecurities and investments – net
Other – net

1,329

1,429

100

203

140

(63)

3

(5,570)(5,573)

1,073

1,047

(26)

Total other income (expenses)

2,792

1.4

(2,676)(1.4)(5,468)14,286

7.3

2,203

1.1

(12,083)

4,880

2.5

5,350

2.8

470

662

0.3

(2,817)(1.5)(3,479)

5,542

2.8

2,533

1.3

(3,009)

8,744

4.5

(330)

(0.2)

(9,074)

916

0.4

725

0.4

(191)

9,660

4.9

395

0.2

(9,265)

85

0.1

(54)

(0.0)

(139)

9,745

5.0

341

0.2

(9,404)

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

- 12 -

(3) Consolidated Statements of Comprehensive Income

Accounts

Fiscal Year Ended
March 31, 2018

Fiscal Year Ended
March 31, 2019

AmountIncreased/(Decreased)

Millions of Yen

Millions of Yen

Millions of Yen

I. Net income
II. Other comprehensive income (loss)– net of tax
Foreign currency translation adjustments

9,660

395

(9,265)

1,113

(750)

(1,863)Net unrealized gain (loss) on securities

6,355

(104)

(6,459)Pension liability adjustments(680)(4,587)(3,907)

Other comprehensive income (loss)

6,788(5,441)(12,229)

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

16,448(5,046)(21,494)

21

(18)

(39)

16,469(5,064)(21,533)- 13 -

(4) Consolidated Statements of Equity
Fiscal Year Ended March 31, 2018
EquityShares of
Outstanding Common
Item

Common

Stock

Stock
Thousandshares

As of March 31, 2017
Cash dividends paid to
Wacoal Holdings Corp.
shareholders
Cash dividends paid tononcontrolling interests
Repurchase of treasury
stock
Other
Net income
Other comprehensive
income (loss)
As of March 31, 2018

68,605Additional
Paid-in
CapitalRetained

Accumulated othercomprehensive

Earnings

incomeTreasurystock

EquityNoncontrolling
Interests

Total Equity

Millionsof YenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillions ofYenMillionsof Yen13,26029,707

170,062

21,873(7,334)

227,568

4,914

232,482(7,386)(7,386)(1,243)(4,007)

5

67,367

Total
Shareholders’

13,260

58

(3)
9,745

29,765

172,418

13

6,724
28,597(11,328)(7,386)(4,007)

(194)

(194)
(4,007)

68
9,745

86
(85)

154
9,660

6,724
232,712

64
4,785

6,788
237,497

Fiscal Year Ended March 31, 2019
EquityShares of
Outstanding Common
Item

Common

Stock

Stock
Thousandshares

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

Additional
Paid-in
CapitalRetained

Accumulated other

Earnings

comprehensive
incomeTreasury
stock

Total
Shareholders’EquityInterests

Total Equity

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

172,418

28,597(11,328)

232,712

4,785

237,497

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

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

65,178

Noncontrolling

13,260

42

(12)
341

29,807

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

(191)

(191)

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

32

62
341

38
54

100
395

(5,405)
216,494

(36)
4,650

(5,441)
221,144(15,584)(6,919)-(Note) We have conducted a share consolidation of common stock of the Company pursuant to which two (2) shares were consolidated into one(1) share effective as of October 1, 2017. Accordingly, the “shares of outstanding common stock” have been calculated assuming that suchshares consolidation has been conducted at the beginning of the previous fiscal year.

- 14 -

(5)Consolidated Statements of Cash Flows

Accounts

I. Operating activities
1. Net income
2. Adjustments to reconcile net income to net cash provided
by operating activities(1) Depreciation and amortization(2) Provision for returns and doubtful receivables – net(3) Deferred income taxes(4) Gain or loss on sales or disposal of property, plant andequipment –net
(5) Impairment charges on property, plant and equipment(6) Compensation income(7) Impairment charges on goodwill and other intangible
assets(8) Gain or loss on sales or exchange of marketable securities
and investments - net(9) Valuation loss on marketable securities and investments –net(10)Equity in net income of affiliated companies,
less dividends(11) Changes in assets and liabilities
Decrease (increase) in notes and receivable
Decrease (increase) in inventories
Increase in return assets
Decrease in other current assets
Increase (decrease) in notes and accounts payable
Increase in refund liabilities
Decrease in liabilities for termination and retirement
benefits
Increase (decrease) in other liabilities(12) Other
Net cash provided by operating activities
II.
1.
2.
3.

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

Fiscal Year Ended
March 31, 2018

Fiscal Year Ended
March 31, 2019

AmountIncreased/(Decreased)

Millions of Yen

Millions of Yen

Millions of Yen

9,660

395

(9,265)

5,492
18
662

5,647
(2,263)(2,817)155(2,281)(3,479)

250
(708)

48
167
-

(202)
167
708

206

5,834

5,628

(203)

(140)

63

(3)

5,570

5,573

(397)

(211)

186

(232)
1,012
270
676
-

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

1,054
(1,088)(1,180)(923)(2,316)
3,482

(833)
(518)
141
15,493

(620)
1,075
180
13,620

213
1,593
39
(1,873)(5,129)3,368(4,783)
5,226

346
1,858

394
(22)
567
(1,605)159
708(3,429)(2,455)82(7,362)

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

2,103
(301)
441
705
117
(708)
826
(725)
270
(44)
4,888

(755)
(47)
(4,007)(7,386)(194)
86(12,303)

1,061
(50)
(6,919)(4,811)(191)
38(10,872)

1,816(3)(2,912)
2,575
3
(48)
1,431

(336)
(4,508)33,99529,487372
646
29,48730,133708
5,154(4,508)646- 15 -

Additional Cash Flow Information

Accounts

Fiscal Year Ended
March 31, 2018

Fiscal Year Ended
March 31, 2019

AmountIncreased/(Decreased)

11
5,853

11
5,068

0
(785)

583

954

371

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

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

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

Major consolidated subsidiaries:
Wacoal Corporation, Peach John Co., Ltd., Lecien Corporation, Kyushu Wacoal Manufacturing Corp., Torica Co., Ltd., Nanasai Co.,
Ltd., Wacoal International Corp., Wacoal America, Inc., Wacoal Europe Ltd., Wacoal EMEA Ltd., Wacoal Europe SAS, Wacoal
Hong Kong Co., Ltd., Wacoal Investment Co. (Taiwan), Ltd., Wacoal China Co., Ltd., Wacoal International Hong Kong Co., Ltd.
and A Tech Textile Co., Ltd.
Major Affiliated Companies:
Shinyoung Wacoal Inc., Taiwan Wacoal Co., Ltd. and Thai Wacoal Public Co., Ltd.
(ii) Changes Regarding Subsidiaries and Affiliated Companies
None.
(iii) Standard of Preparation of Consolidated Financial Statements
The consolidated financial statements have been prepared based on terms, format and preparation methods in compliance withaccounting standards generally accepted in the United States as required in connection with the issuance of American Depositary
Receipts. For this reason, the consolidated financial statements may be different from those that have been prepared based on theConsolidated Financial Statement Regulations and the Standard of Preparation of Consolidated Financial Statements in Japan.
(iv) Significant Accounting Policiesa.

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

b.

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

c.

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

d.

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

e.

Consumption Taxes
Consumption taxes have been excluded from sales.

f.

Consolidated Statements of Cash Flows- 16 -

In preparing the consolidated cash flow statements, highly liquid investments with original maturities of three (3) months
or less have been included in cash and cash equivalents.
(v) Changes in Accounting Policy
a. Revenue Recognition – The new accounting guidance Revenue from Contracts with Customers (ASU2014-09, 2016-12) has been
adopted starting with the current consolidated fiscal year. This guidance requires an entity to recognize the amount of revenue
expected to be entitled in exchange for goods or services transferred under contract by such entity to customers. The adoption of thisguidance is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash
flows. Due to the adoption of this guidance, liability related to returns which were included in “Allowance for Returns and Doubtful
Receivables” under current assets through the previous consolidated fiscal year will be classified as “Refund Liabilities” undercurrent liabilities and rights to collect goods to be returned will be classified as “Return Assets” under current assets starting with thecurrent consolidated fiscal year.
b. Recognition and Measurement of Financial Instruments – The new accounting guidance Recognition and Measurement of
Financial Assets and Financial Liabilities (ASU2016-01, 2018-03) has been adopted starting with the current consolidated fiscal
year. This guidance requires an entity to measure equity investments (except those accounted for under the equity method of
accounting or those that result in consolidation of the investee) at fair value with any change in fair value recognized in net income.
Adoption of the guidance has required the Company to recognize unrealized gains of 27,320 million yen (net of tax) on equity
securities from accumulated other comprehensive income (loss), and unrealized gains of 514 million yen (net of tax) on
non-marketable equity securities at cost as a cumulative-effect adjustment to retained earnings at the beginning of the fiscal year
ended March 31, 2019.
c. Periodic Pension Cost – The new accounting guidance Improving the Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Cost (ASU2017-07) has been adopted starting with the current consolidated fiscal year. This guidance
requires an entity to record components of net periodic pension costs and net periodic postretirement benefit costs other than theservice cost component as other income or expenses. This guidance will be applied retrospectively to the presentation of the service
cost and the other components of net periodic benefit costs. Due to the adoption of this guidance, 1,040 million yen has been
reclassified as other expense (net) from operating costs and expenses for the previous fiscal consolidated year. As a result, operating
income decreased 1,040 million yen as compared to operating income before such reclassification for the previous consolidated fiscal
year.
(8) Notes to the Consolidated Financial Statements(i) Per Share Information
Fiscal Year Ended
March 31, 2018
9,745 million yen
67,928,557 shares
143.46 yen

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

Net income attributable to Wacoal Holdings Corp.
Number of average shares issued during the year
Net income attributable to Wacoal Holdings Corp. per share
Diluted net income attributable to Wacoal Holdings Corp. per
142.98 yen
5.14 yen
share(Note) The “number of average shares issued during the year,” “net income attributable to Wacoal Holdings Corp. per share,” “diluted net income
attributable to Wacoal Holdings Corp. per share” and “net income attributable to Wacoal Holdings Corp.” have been calculated assumingthat the share consolidation, which we conducted during the current consolidated fiscal year, has been conducted at the beginning of theprevious fiscal year.

- 17 -

(ii) Segment Informationa.

Operating Segment Information

Fiscal Year Ended March 31, 2018 (April 1, 2017 - March 31, 2018)(Millions of Yen)
Wacoalbusiness(Domestic)

Wacoalbusiness(Overseas)

Peach Johnbusiness

Other

Total

Elimination

Consolidated

Net sales(1) External customers

116,085

51,888

10,795

16,957

195,725-

195,725(2) Intersegment

1,051

10,180

1,281

5,283

17,795(17,795)-

Total

117,136

62,06812,07622,240213,520(17,795)

195,725

Operating costs and expenses

110,291

58,010

11,63521,884

201,820(17,795)

184,025

Impairment charges on goodwill

-

206

-

-

206

-

206

Total operating costs andexpenses

110,291

58,216

11,63521,884

202,026(17,795)

184,231

Operating income

6,845

3,852

441

356

11,494-

11,494

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

Wacoalbusiness(Overseas)

Peach Johnbusiness

Other

Total

113,400

53,10010,491

17,210194,201-

194,201(2) Intersegment905

10,121

1,083

5,543

17,652(17,652)-

Total

114,305

63,221

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

194,201

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

107,785

58,64011,79422,921

201,140(17,652)

183,488

195

-

5,639

-

5,834

-

5,834

107,980

58,64017,43322,921

206,974(17,652)

189,322

Operating income (loss)

6,325

4,581

(5,859)

(168)

4,879

-

4,879

Elimination

Consolidated

Net sales(1) External customers(Note) 1.

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

- 18 -

b.

Information by Region

Fiscal Year Ended March 31, 2018 (April 1, 2017 to March 31, 2018)(Millions of Yen)
Elimination or
corporateJapan

Asia/Oceania

Europe/N.A.

Total

External customers

143,196

21,05731,472

195,725-

195,725

II.

Operating income

7,481

1,200

2,813

11,494-

11,494

III.

Long-lived assets

46,367

4,916

3,050

54,333-54,333I.

Consolidated

Net sales

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

I.

Japan

Asia/Oceania

Europe/N.A.

Total

Elimination or
corporate

Consolidated

Net sales
External customers

140,189

22,50931,503

194,201-

194,201

II.

Operating income

242

1,578

3,059

4,879

-

4,879

III.

Long-lived assets

45,257

4,810

3,203

53,270-53,270(Note) 1.
2.

3.
4.

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

Overseas Sales

Fiscal Year Ended March 31, 2018 (April 1, 2017 - March 31, 2018)(Millions of Yen)I.

Overseas net sales

II.

Consolidated net sales

III.

Ratio of overseas net sales to total consolidated net sales

Asia/Oceania

Europe/N.A.

Total

21,05731,472

52,529--195,725

10.7%

16.1%

26.8%

Asia/Oceania

Europe/N.A.

22,50931,50354,012--

194,201

11.6%

16.2%

27.8%

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

Overseas net sales

II.

Consolidated net sales

III.

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

Countries or areas are classified according to geographical proximity.
Main countries and areas belonging to classifications other than Japan
Asia/Oceania: various countries of East Asia, Southeast Asia and West Asia, and Australia
Europe/N.A.: North America and European countries- 19 -Total

(iii) Status of Sales

Type of productFiscal Year Ended March 31, 2018
AmountMillions of Yen

Fiscal Year Ended March 31, 2019

Distribution ratio%

AmountMillions of Yen

Distribution ratio%

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

146,970
8,758

75.1
4.5

146,525
8,296

75.4
4.3

1,376

0.7

1,213

0.6

157,104

80.3

156,034

80.3

16,128
1,983
8,907

8.2
1.0
4.6

14,733
1,881
9,428

7.6
1.0
4.9

11,603
195,7255.9
100.0

12,125
194,201

6.2
100.0(iv) Significant Subsequent Events
Not applicable.
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