Our Group Initiatives
for the Fiscal Year Ending March 31, 2024
May 19, 2023
Wacoal Holdings Corp.

1

Hello, everyone. My name is Yajima, and I have been appointed President of Wacoal
Holdings Corporation, succeeding President Yasuhara. Thank you in advance for yourcooperation.
I will now explain the Wacoal Group's initiatives for the fiscal year ending March 31, 2024.
As Miyagi mentioned earlier in his explanation, the previous fiscal year was a difficult one
for us due to sluggish performance in Japan, China, and the United States.
In addition, a large impairment loss was recorded in the US business, resulting in theposting of a final loss for the first time since the Company's founding.
We take very seriously the concerns we have caused our shareholders and otherstakeholders.
We are already working to rebuild the management of the Company, and we hope to
improve the Company by promoting reforms without being bound by past ties.

Wacoal Holdings Mission

MissionFounding
Principles*Reiteration from June 3, 2022 Mid-term Management Plan Summary

WACOAL empowers people with the confidence that comesfrom looking and feeling their best.
As a global leader, we welcome everyone into our caring
community built on mutual respect, diversity, and inclusion.

＜Our Culture＞
We, the employees andmanagement of WACOAL, will
maintain a refined corporate
culture based on mutual trust andwill continually strive to make theCompany a global leader in theindustry.

＜Our Promise＞
We will contribute to society byhelping women to express theirbeauty.

＜Our Values＞
Create products loved by customers
Develop new products that meet the needs ofthe times
Conduct business in a fair manner with aforward focus
Build a better Wacoal through better humanresources
Fear not failure and boast not of success

2

This page contains our management philosophy. Our mission is to provide products andservices that are closest to the bodies and minds of our customers, and to achieve growth.
To fulfill this mission, we are committed to reform with determination.

*Reiteration from June 3, 2022 Mid-term Management Plan Summary

What We Aim For in VISION 2030

Evolve and grow into the global Wacoal Group by utilizing our elevatedminds and quality through beautifying and enriching each individual's body

Medium- to Long-termManagement Strategy Framework

VISION 2030

CreateExpectations

Management Strategies

×

Materialities (Material Issues)

Respond to
Requests

Behavioral Guidelines for
Executives and Employees×
Commitment

3◼ Achieve global growth◼ Provide greater value / Expand our business areas◼ Create a culture where diverse human resources
can play active roles◼ Have an operating margin and ROE around 10%◼ Solve materialities (material issues)(Strengthen responses to environmental andsocial issues)◼ Continuously improve the executive compensation
system◼ Optimize the Board of Directors' member structure◼ Optimize the capital structure

3

Next, I would like to briefly explain our medium- to long-term management strategy
frame, VISION 2030, which we announced last June. VISION 2030 sets forth theGroup's commitment to achieving global growth, evolving the value it provides, andexpanding its business domains, as well as its goal of achieving a 10% ROE level, inorder to enhance its corporate value.
In addition, to enhance the effectiveness of our management strategy, we will work tocontinuously improve the executive compensation system, optimize the composition of theBoard of Directors, and optimize the capital structure.

VISION 2030 Management Strategies*Reiteration from June 3, 2022 Mid-term Management Plan Summary

Create New Value from an Innovative Perspective and Achieve Sustainable Growth
VISION 2030
Management Strategies

Business areas (Categories to strengthen moving forward)“Beauty”“Comfort”“Health”

We will cultivate and expand the beauty, comfort, and health areas with new
Improve domestic
profitability and expand
our business areas

PromoteSustainability
Management

products and services backed by our elevated minds and quality

Expand overseas businesses
and transform them into
high-revenue structures

Strengthen the Group's
management capabilities

Shift to more capitalefficient management

4

Here is a summary of the management strategy in VISION 2030.
Under VISION 2030, the Company has designated beauty, comfort, and health as its
focused business domains, and has announced that it will work to improve profitability
and expand its business domain in Japan, expand its overseas business and transform
itself into a highly profitable structure, strengthen group management capabilities, andshift to more capital-efficient management.
We do not believe that we have made any progress in these efforts in the last fiscal year,
and we intend to reflect carefully and gear up for change.

Review of the first year of the medium-term plan (FY2023-FY2025)➢

The strategy's effectiveness has not improved both in Japan and overseas, and our performance is significantly lower
than the initial plan. The gap with the target for the final year of the medium-term management plan is widening

Japan

Overseas

172.1

205.0

188.6

70.1

vs initial plan
-3.4
（-5％）

66.7

134.9

vs initial plan
-13.0（-10％）

121.9

59.2

220.0

205.0
vs FY2023＋6.8（＋10％）

73.5

Overseas Business
+13.3

86.8

vs FY2023
＋9.6
（＋8％）

131.5

Domestic business
+1.7

133.2

（billions of yen）

Revenue
112.9

FY2022

FY2023 initial plan

FY2023 results

FY2024 plan

FY2025 plan

16.0
6.2

事業
Business利益
profit

7.0
2.4

0.5
1.8
-1.3
FY2022

4.6

vs initial plan
＋0.7（＋28％）
vs initial plan
-3.6（-78％）FY2023 initial plan

6.0
4.1
3.1
1.0

vs FY2023＋0.4（＋13％）vs FY2023＋1.5（＋144％）FY2023 results

3.5
2.5
FY2024 plan

Overseas Business+2.7
Domestic business
+7.3

9.8

FY2025 plan

5

From here, we will look back on the first year of the medium-term management plan. The
first is performance.
The figures indicated by the yellow arrows are the sales revenue and business profit for
the fiscal year ended March 31, 2023. To the left of that is the figure that was initiallyposted.
The prolonged infection, sluggish growth in the number of customers visiting our storesafter the deregulation of regulations, and suppliers' restraints on purchases resulted in a
substantial shortfall from the initial plan.
Also, to the right is the business plan for the fiscal year ending March 31, 2024. Whilerevenue is assumed to be JPY205 billion, the same level as the previous year's plan,business profit is assumed to be JPY6 billion, lower than the previous year's plan, taking
into account the unstable business environment.
As a result, the gap between the target figures and those we are aiming for in the fiscal
year ending March 31, 2025, the final year of the medium-term management plan, iswidening.

Review of the first year of the medium-term plan (FY2023-FY2025)➢ Although the management system was renewed during the fiscal year, many issues have remained interms of strengthening profitability
➢

P/L

➢

➢

B/S

➢

➢

Governance

Human capital➢

A delay in response to changing consumer needs (decreased product appeal, sluggish sales
due to delayed local marketing strategies)
Delays in cost reductions, inventory adjustments, and other actions due to overoptimistic
estimates of the profit and loss plan

A decline in inventory control functionality due to sudden fluctuations in sales and production
delays in recent years
Necessity to improve the management indicators of each business division (effective use oflimited management resources)
Where the responsibility for the management strategy lied was unclear, and the strategy's
effectiveness did not improve
Holdings' supervisory performance for company operations is also inadequate and needs
improvement➢➢

Poor business productivity per capita (issues remain in terms of optimizing staff organization)
Secure and develop staff capable of maximizing value to offer to our customers andimproving profitability➢

Employee motivation decreased due to prolonged stagnation
Lack of communication between management and site staff, between divisions, and within
the workplace

Corporate culture ➢6This section describes the reasons why the first year of the medium-term management
plan fell far short of the plan.
On the P&L side, there was a delay in responding to changing consumer needs in terms
of products and sales. In addition, the profit-and-loss plan was not well forecasted,resulting in delays in cost reductions, inventory adjustments, and other actions.
On the B/S side, inventory control did not work well in response to recent rapid sales
fluctuations and production delays.
In addition to weak strategic assumptions, inadequate management and supervisory
functions prevented the strategies from being effective, and many issues remain to beaddressed in order to strengthen profitability.

Management issues to address*Reiteration from May 12, 2023 FY2023 Financial Results Presentation➢ Improve profitability and capital efficiency, and quickly restore stagnant PBR to
more than double the current level➢ Establish an appropriate management system that can enhance corporate value
B/S

Focusing on capitalefficiency,change management
further➢➢ We recognize that it is important toimprove profitability and capital efficiency,
and to quickly restore stagnant PBR to
more than double the current level➢ By shifting to a management style that➢
focuses on profitability and capitalefficiency more than ever before and byimproving our execution of strategies,
each operating company and businessdivision will increase corporate value

Governance

Enhance supervisory
functions

It is necessary to further strengthen the ➢supervisory function of the Board of
Directors over business execution and toenhance the effectiveness ofmanagement➢
In order to steadily improve profitability
and capital efficiency, we will appoint anadditional outside director withexperience and knowledge in investment
and financial/capital markets, verifying
the skill set of the Board of Directors

P/L

Improve businessprofitability

Due to the inadequate response tochanging consumer needs and consumer
behavior following the COVID-19 pandemic,
the recovery of revenue was delayed
It is necessary to regenerate growth byproviding new customer experience value
and creating new businesses, while
continuing to reform the cost structure andimprove business efficiency

7

In light of this current situation, the following is a summary of the management issues tobe addressed by the Group. This one is similar to Miyagi’s explanation given earlier. To
resolve the issues at an early stage, as stated, we will make further changes to capitalefficiency-oriented management, strengthen supervisory functions, and work to improvebusiness profitability.

Summary for FY2024 Initiatives
Led by the Board of Directors, we will promote the transformation of management to focus on capital efficiency
By revising the medium-term management plan, we will improve the certainty of achieving the plan set forth in“VISION2030”➢➢

1

Growth strategies and structural reforms based on a highly
effective medium-term management plan

Revision of the medium-term
management plan

➢ We will review the business strategy of the current medium-term management
plan announced in the March FY2023 term and also consider and announcemeasures to strengthen our management foundation in order to improve
profitability and capital efficiency

Significant failure toachieve the targets ofthe first year of themedium-term
management plan

FY2024
turning point(Struggles in Japan, theUnited States, and China)

2

Thorough business portfolio management

Management focused on capital efficiency➢ Holdings and each operating company and businessdivision will shift to management that focuses on
profitability and capital efficiency more than ever, andimprove the effectiveness of management

Increase strategy effectiveness(Strengthening of human capital)

3

Improve thecertainty ofachieving the planfor "VISION2030"

Replenish our skill set for investment andfinancial/capital markets

Strengthening of management
supervisory functions➢ In order to transform management with a better awarenessof capital costs, we will examine the skill sets of directors andappoint additional outside directors with knowledge of theinvestment and financial/capital markets

8

The following is a summary of the Group's efforts during the year under review to address
the management issues described on the previous page. First, we will revise the mediumterm management plan announced last year. In addition to reviewing the business strategyof the medium-term plan, the new management team will take the lead in studying
measures to strengthen the management foundation to improve profitability and capitalefficiency and will announce the revised plan by November.
The second is to promote capital efficiency-oriented management. Holdings, as well as
each of its operating companies and divisions, will move to a management style that places
greater emphasis on profitability and capital efficiency than in the past, thereby enhancing
the effectiveness of its strategy.
The third is to strengthen supervision of management. In order to transform managementwith an awareness of capital efficiency, we have examined the skill sets of our directors
and decided to appoint an additional outside director with knowledge of investment andfinancial capital markets.
We plan to use the current fiscal year as a turning point to improve the probability ofachieving the plan set forth in VISION 2030 by promoting the transformation to a
management emphasizing capital efficiency and increasing the effectiveness ofmanagement.

1

Growth strategies and structural reforms based on a highly effective medium-term management plan

Revision of the medium-term management plan
（Disclosed mid-November 2023）➢ In addition to reviewing the business strategy of the medium-term management plan, we will consider measures to strengthen
our management foundation to improve profitability and capital efficiency➢ The new management team is also taking the lead in analyzing and evaluating the company's capital profitability and market
evaluation, as well as its policies, targets, management indicators, specific initiatives, and timelines for implementing PBR
improvements. We are planning to disclose the medium-term management plan at the same time as the revision➢ Swiftly recover the Wacoal Group's performance➢ Increase strategy effectiveness, improve profitability and capitalefficiency, and achieve a PBR of 1x

Aim of therevision

Reform items
KPIs to be disclosed in
NovemberCost structurereform➢Measures➢Business
structure reform(Closing of
unprofitable
stores, etc.)

Portfolio reform(Selection andconcentration ofbrands andbusinesses)

Validation offinancialstrategy

Governancereform(Corporate
culture reform)

Consider incorporating ROIC as a management indicator that can be handled at the department level rather than as a
KPI for management only (the details of specific initiatives, timelines for achievement and KPIs will be disclosed in midNovember)
In order to transform management in order to focus on profitability and capital efficiency, and strengthen managementmonitoring from the same perspective, additional outside directors with knowledge of investment and financial/capital
markets will be appointed (two persons will be appointed at the General Meeting in June FY2023)

9

The following is a detailed explanation of each item.
First, let us explain the revising of the medium-term plan. The reason for implementing
the revise is never to revise targets downward in light of the difficult business environment.
We will review the business strategy of the current mid-term plan and speed up the statedreform items with the aim of quickly achieving a P/B ratio of over 1 times through therestoration of business performance and improvement of profitability and capital efficiency.
In addition, as will be explained in more detail on the next page, we will simultaneously
strengthen management control by introducing ROIC and enhance the supervisory
function of the Board of Directors in order to improve the effectiveness of the revised
medium-term management plan.
The revised Plan is scheduled to be disclosed around November 2023, and along with thespecific strategies, KPIs and timeline for achievement will also be made public.

2

Thorough business portfolio management

Management focused on capital efficiency（ROIC management）➢We will achieve sustainable growth and increase corporate value over the medium to long term bymaking Holdings and each operating company and business division shift to a management style that ismore conscious of profitability and capital efficiency than ever before, and enhancing management
effectiveness

P/L-oriented business operations

Business
operations
focusing on
capitalefficiency
andprofitability

Promotion of
disciplined
business portfolio
management withROIC used as anindicator

Lack of understanding of management
resources(Deterioration of inventory control functions)present

Unclear criteria for withdrawal(Preservation of unprofitable businesses)

An investment strategy based on sales
expansion(M&A failures, impairment losses recorded)

Resource
allocation
towards a
growingbusiness

Review ofassets heldbyunprofitablebusinesses

Disciplined
M&A

10

In the previous page, I explained that we will strengthen our business management
function based on ROIC. Here are some of the details.
The reason for the Group's low return on capital was, as stated, the P/L-oriented business
operations of each operating company and business unit.
In addition, the parent company, Holdings, did not adequately make decisions on
investments and withdrawals or review its business portfolio from the perspective of
maximizing returns on invested capital.
In this revise, we will deeply reflect on this point and consider introducing ROIC as a KPI
to improve capital efficiency.
Holdings, as well as each operating company and division, will shift to management thatis more conscious of profitability and capital efficiency than in the past, and promote
disciplined business portfolio management to enhance corporate value.

Replenish our skill set for investment and financial/capital markets

3

Strengthening of management supervisory functions➢ Replenish our skill set for the investment and financial/capital markets in order to transform management with anawareness of capital costs➢ Strengthen supervisory functions by increasing the number of outside directors (Clarification of the roles of supervisionand execution)

Officer structuring and skill matrix exercises will be held after theOrdinary General Meeting of Shareholders scheduled for June 2023
Name

Independence(for outside
officer only)

Company
Management(Experienceand Insight)

MasaakiYajima●Akira
Miyagi●

Shigeru
Saito

●

●

Tsunehiko
Iwai

●

●

Chizuru
Yamauchi●●

Additional
Appointment

Hisae
Sato

●

Additional
Appointment

Koji
Nitto

●

11

●

Legal/
Compliance

Investment/
Financial/Capital Market

Finance/
Accounting

Sustainability
Diversity &Inclusion

Human
Resource/
Organizational
Development

GlobalAwareness

DigitalTransformation

●
●

●

●

Technology/
Production
Quality
Control

●

●

●

●

●

●

●

Marketing

●

●
●
●

●

●

●

●
●

Note: Mr. Yasuhiro Shimizu, a new director candidate, has requested to withdraw his candidacy for personal reasons, and the Boardof Directors agreed to accept his request at the meeting held on May 12, 2023

Next, I will explain the strengthening of management oversight functions.
In order to shift to a management focus on capital efficiency and achieve a return on
capital that exceeds the cost of capital, it is necessary to further strengthen the
supervisory function of the Board of Directors over the execution of operations andincrease the effectiveness of management.
In order to steadily implement improvements in profitability and capital efficiency, we haveexamined the skill set of the Board of Directors and decided to appoint an additional
outside director with experience and knowledge of investment and financial capital
markets.
One of the two candidates for outside director is Ms. Hisae Sato, a former chief investment
officer of Nissan Motor with experience overseeing pension assets on a global level andcurrently serving as a member of the board of directors of International Christian
University.
The other is Mr. Koji Nitto, a director of Omron Corporation. Mr. Nitto served as CFO, Global
Strategy Division until March, and will retire from Omron's Board of Directors at theGeneral Meeting of Shareholders in June.

3

Replenish our skill set for investment and financial/capital markets

Strengthening of management supervisory functions➢Achieve an increase in corporate value over the medium to long term by enhancing management
effectiveness and improving profitability and capital efficiency
Additional

Additional
Appointment

External
Director

External
Director

External
Director

External
Director

External
Director

Shigeru
Saito

Tsunehiko
Iwai

Chizuru
Yamauchi

Hisae
Sato

Koji
Nitto

He is currently the Representative Director andChairman of a software development firm which
operates globally and Outside Director of anothercompany. His extensive knowledge and insight asa company manager enable him to contribute to
the management of the Company. Ms. Saito also
has expertise in the IT area and gives valuable
opinions and advice regarding the digitaltransformation strategies of the Company. We
expect that he will provide advice that willcontribute to enhance our corporate value andstrengthen oversight over the Company.
Date of
Birth

January 26, 1957

November
1979

Joined TOSE CO., LTD
General Manager of Development
Department

October1985

Director of TOSE CO., LTD.

February
1987

Representative Director and Presidentof TOSE CO., LTD.

September
2004

Representative Director and President,
and CEO of TOSE CO., LTD.

December
2015

Representative Director and Chairman,
and CEO of TOSE CO., LTD. (current
position)

June 2017

Outside Director of the Company(current position)

12

Appointment

He has expertise in research, production, andtechnology, in addition to the knowledge andinsight he has gained as a corporate executive,
including serving as the representative directorof a global cosmetics manufacturing and sales
company. In addition, he is the chairman of our
executive nomination and compensation
advisory committee. We expect that he will
provide advice that will contribute to theenhancement of our corporate value in the
future.
Date ofBirth

May 28, 1953

April 1979

Joined Shiseido Co., Ltd.

April 2002

General Manager of Product Commercialization,
Planning Department, Shiseido Co., Ltd.

In addition to her extensive knowledge andexperience as a manager, she has expertise indiversity and inclusion. We expect that she will
provide advice on human resource strategies
such as women's activities and human resource
development, as well as advice that contributes
to the enhancement of corporate value, andsupervise the management of the Company.

She has experience as an asset management
consultant at a foreign organization and humanresources asset management consulting firm
and as the chief investment officer of an
automobile manufacturing and sales company,
where he oversaw pension assets on a global
level. We expect that he will utilize theseexperiences to enhance the corporate value of
our company.

Date of
Birth

February 25, 1957

Date of
Birth

October 16, 1961

April 1975

Joined Nippon Life Insurance Company

March
2009

Head of Kagayaki Promotion Office, Nippon Life
Insurance Company

April
1985

Joined the Hokkaido Takushoku Bank,
Limited

March
2014

General Manager, Service Planning Dept., Nippon Life
Insurance Company

September 1997

Joined Watson Wyatt K.K. (current Towers
Watson Investment Services K.K.)

March
2015

Executive Officer, General Manager, CSR Promotion
Dept., Nippon Life Insurance Company

February
2004

Joined AIG Global Investment Corp., Japan(current PineBridge Investments Japan Co.,
Ltd.) as Deputy General Manager ofInstitutional Business Development
Division

Septemb
er 2005

Joined Nissan Motor Co., Ltd. as Shukan,
Chief Investment Officer, Treasury
Department

April 2008

Corporate Officer, General Manager of Technical
Department, Shiseido Co., Ltd.

March
2019

Managing Executive Officer, General manager of Health& Productivity Management Promotion Division, Nippon
Life Insurance Company

June 2014

Director, Corporate Executive Officer in charge of
Research & Development, Production andTechnical Affairs, Shiseido Co., Ltd.

July 2019

January
2016

Representative Director, Executive Vice President
Chief Technology & Innovation Officer, ShiseidoCo., Ltd.

Director and Managing Executive Officer, Generalmanager of Health & Productivity Management
Promotion Division, Olympic & Paralympic Games
Promotion Dept., Public Affairs Dept., CSR Promotion
Dept., Health Management Dept., Nippon Life Insurance
Company

March
2018

Senior Advisor, Shiseido Co., Ltd.

June 2018

Outside Director of the Company (current
position)

April 2022

Outside Director, Cross Plus Inc. (current position)

April
2008

Member of the Investment Committee, theGovernment Pension Investment Fund ofJapan

Director, Nippon Life Insurance Company

June
2016

Councilor, International Christian
University (current position)

Advisor, Nippon Life Insurance Company (current
position)

June
2017

Trustee, International Christian University(current position)

May 2021

Chair, Diversity and Inclusion Sub Committee, Labor
Policy Committee, Kansai Economic Federation

March
2022
July 2022

He has extensive experience as CFO andGeneral Manager of the Global Strategy Divisionof an electronics manufacturing and sales
company that operates a global control
equipment business. In particular, we believethat his knowledge and insight based on his
experience leading "ROIC management" at acompany with multiple business portfolios willcontribute to improving our profitability andcapital efficiency.
Date of
Birth

February 1, 1961

April
1983

Joined OMRON Corporation

June
2011

Executive Officer, Senior General Manager,
Global Resource Management HQ, OMRONCorporation

April
2013

Managing Executive Officer, Senior General
Manager, Global SCM and IT Innovation HQ,OMRON Corporation

April
2014

Senior Managing Executive Officer, Global
Strategy HQ, OMRON Corporation

June
2014

Director, Senior Managing Executive Officer,
Global Strategy HQ, OMRON Corporation

April
2017

Director, Senior Managing Executive Officer,
Chief Financial Officer (CFO), Global
Strategy HQ, OMRON Corporation

April
2023

Director, OMRON Corporation (current
position)

This will be the structure of the outside directors scheduled after the June 28 General
Meeting of Shareholders. After the shareholders' meeting, the ratio of outside directors
will increase more than before, and the roles of supervision and execution will be moreclearly defined. We believe that this aspect will further strengthen the supervisory function
over management.

Holding
Company

Initiatives to improve the effectiveness of the Wacoal Group's strategy

Initiatives to strengthen progress management and monitoring

A Holdings-led Group Strategy Committee (tentative name) will be established to monitor the revision of the mediumterm management plan and its effectiveness✓ Some projects have already started, and we have decided to revise the medium-term management plan
✓ It is assumed that monitoring will also be conducted using ROIC as an indicator described above✓ Outside directors will also participate in the Committee and each project as necessary✓ To enhance the accuracy and effectiveness of structural reforms, we will consider the use of external
consulting services■Promotion system

Board of Directors(Some projects have already started)

Group Strategy Committee(tentative name)(As required)
Use of external consulting services

Management Bases

Overseas Group

Domestic Group

Wacoal Business Structural
Reform Project (tentative name)➢ Effective use of assets➢ Improve capital efficiency➢ Build a management system using
ROIC as an indicator➢ Review the compensation structure➢ Reexamine medium to longterm strategies, mainly for theUnited States and China➢ Plan to cope with issues basedon the forecast for the first halfof the year

➢ Enhance growth strategy andrevenue(Described on pages 14 and 15)

13

The following is a description of the promotion system regarding this revise. Some of theinvestors attending the presentation today may have doubts about the effectiveness of
the Group, judging from its past performance. For this reason, a Holdings-led Group
Strategy Committee has been established for the formulation of the current revise plan,with the participation of outside directors as necessary to verify the effectiveness of major
measures.
We also intend to utilize outside consulting firms as needed to improve the accuracy ofeach measure.

JapanWacoal corp.

Policy bringing back Wacoal's growth and improvement of profitability

Re-structuring of branding and customer strategies

Wacoal defines marketing as "all activities that create value for customers" to reconstructa marketing system that integrates numerical values and sensibilities (from 24SS)➢ About Marketing Advisor

We appointed Mr. Sugiyama of SEN Marketing as a marketing advisor
We will articulate the customer image of our brand, the brand story, the growth path, and the necessity of being

by customers, and build a "brand strategy" that takes into account overall optimization. We will promote a
1 selectedcompany culture that facilitates the creation of a brand that will be deeply cherished by customers well into the future.

marketingCorporate Value Creator

customer data and insight surveys, we will raise our standards of customer understanding, review management
2 onindicators
to achieve "maximization of LTV," and take other highly pinpointed measures.

We will restructure our customer strategy based on what kind of value we provide and to whom we provide it. Based

We will newly establish a meeting structure under the directcontrol of the president in order to cooperate with eachdivision and speed up the resolution of business issues. We
will hold weekly, monthly, and seasonal meetings todetermine solutions to critical issues, track progress, andimplement verifications, etc.

Representative Director, President and CEO

Keisuke KawanishiMarketing Meeting and the IT Department will also participate

If necessary, the Engineering/Production Headquarters

Product Development andMerchandising Div.
Director, Corporate Officer

Marketing Div.
Director, Corporate Officer

Atsuko Shinoduka

Mitsuru Sekiguchi◆◆

Innovation Strategy Dept.
Human Science Research &Development Center

14

◆
◆

◆
CX Designing Dept.
Marketing Strategy Dept. ◆Sales Div.
Corporate Officer

Hirofumi Inoue
Advertising Dept.
Customer Support Center

Shigekazu
Sugiyama

1987
Prior to joining Shiseido Company, Limited in 2009 as the head of theMarket Information Office of Corporate Planning Department, he worked
in the Market Information Department and Marketing Division of Lion
Corporation, and worked for Coca-Cola(Japan)Company, Limited as the
Executive Manager of the Management Information Department.
2012
Became an executive officer in charge of corporate culture andadvertising production.
2014
In charge of the marketing space for the domestic cosmetics business.
2015
Director of Cosmetics Brand Business Division, Japan Business
Headquarters.
2017
Became the CEO of Shiseido Japan.
2020
Retired from Shiseido. Established SEN Marketing Office.

Maximizing our value proposition and establishing a competitive advantage by strengthening marketing,developing brands, acquiring new customers through the use of 3D technology, and strengthening
collaboration with the Human Sciences Research and Development Center, etc.

Finally, I will explain the efforts of our core domestic and overseas businesses during theperiod under review.
First, this will be a domestic Wacoal initiative. Wacoal's profitability is in decline due to
weak sales and a cost structure with a high fixed cost ratio. To return to top-line growthand improve profitability, we will restructure our brand and customer strategies, as well
as speed up cost structure reforms.
First, let me explain the restructuring of brand and customer strategies. The brandstrategy will be overhauled to clarify each brand's customer image, brand story, growthpath, and inevitability of being chosen by customers, as well as to include a numericalbackground.
Regarding customer strategy, we are also reviewing customer management metrics tomaximize LTV. By analyzing customer data and improving the resolution of customer
behavior, we will implement highly accurate marketing initiatives.
In order to steadily promote a return of growth of the top-lines, develop a brand portfoliothat will lead to improved profitability, and further advance marketing activities, we
determined that we need help from outside, thus decided to appoint Mr. Sugiyama of SEN
Marketing Office, who has a proven track record with Shiseido and Coca-Cola Japan, as amarketing advisor.

JapanWacoal corp.

Policy bringing back Wacoal's growth and improvement of profitability

Speeding up of cost structure reform➢

The biggest issue with the Group management is to improve the profitability of
Wacoal Corp. At the current stage, we will undertake further structural reform

1

The SG&A ratio is assumed to be 53.8% for the March FY2024 term. In response to variable cost increases, we proceeded by
reducing personnel costs through the continuation of personnel planning management and by reducing advertising expenses, the
SG&A ratio was expected to decline by 3.1 pts from the previous fiscal year, but the ratio remained high2

Currently, the new management team is taking the lead in considering additional improvement measures, the implementation
schedule, profit/loss impact, and a promotion system.
(In order to enhance the accuracy and effectiveness of structural reforms, we are also considering the use of external consulting
services.)

The amount of sales, as well as general andadministrative expenses related to sales of Wacoal Corp.
Although cost reduction and personnel planning
management were promoted,
the SG&A ratio remained high due to the delay insales recovery（billions of yen）
FY2020

FY2024 plan

Cost reductions

Personnel costs

24.7

19.4

-5.3

General expenses

29.3

28.5*

-0.8*

*excluding the impact of revenue recognition (approximately 5.7)
Personnel costs

revenue

Cost of sales

Wacoal Cost Structure(FY2023)

1. Improvement in revenue(1) Selection of and focusing onbrands(2) Lowering of manufacturing costs(3) Reduction of production capacityand material costs
Advertising
costs

51.0％

Packing/shipping Personnel
costs Salesperson
personnel
cost

59.0％ 57.4％

31.2％

2. Improved expenses(4) Improvement of store profit/loss /closing of unprofitable stores(5) Promotion of personnel planning
management(6) Reduction of other general
expenses

53.5％

28.4％

29.1％

22.6％

24.4％

FY2019FY202032.0％

General expenses

56.9％

53.8％

35.0％
34.3％

27.8％

25.4％

21.9％

19.5％

Asset rentals
Depredation cost
goodwill cost

販売費及び一般管理費

15

Others

FY2021

FY2022

FY2023 FY2024 plam

Created on the basis of data before consolidation adjustment.
Operatingloss

The next section describes the speeding up of Wacoal's cost structure reforms.
At present, we recognize that the biggest challenge for the Group is to restore Wacoal's
profitability, and at this stage, with sales recovery lagging behind, we need to take anotherstep forward in structural reform.
The new management team is currently working on additional improvement measures,
implementation schedule, profit/loss impact, and promotion structure. We are also
considering the use of outside consulting firms to enhance the accuracy and effectivenessof structural reforms.
This is the main policy of the medium-term management plan revision, and we will explain
the policy initiatives in detail and in concrete terms at the time of the announcement of
the revision.

Overseas

Improvement of profitability in the U.S. and China businesses

Europe, U.S.,
ChinaStrengthening of e-commerce business and improvement of business efficiency

In addition to strengthening the e-commerce business, which is our core strategy, we will
strengthen our product appeal according to the characteristics of each market.
On the other hand, bearing in mind the downside risk of the sales plan due to the deteriorationof consumer sentiment, we will aim to secure the target profit by implementing appropriate
cost control according to the sales situation. At the same time, each company will focus on
decreasing inventory levels➢ About the new designer at Wacoal China
Sachiyo Wakashiro
Wacoal China Co., Ltd. Wacoal Brand
Design Director
After joining Wacoal Corp. in 1990, she worked
as a pattern maker, and in 2005 became thechief designer of the "Salute" brand. After
arriving at her new post with Wacoal China towork as a designer for Wacoal brands in China in
2011, she worked as a lingerie director for
Wacoal Europe from November 2016, and won
the "Designer of the Year 2018" award. She has
been in her current position since April 2022

Wacoal America：Revenue plan YoY+3%、Business Profit plan ＄11 million（YoY+5％）

U.S.
All figures are in
local currency.

- Increase our e-commerce (+10%) by promoting measures to increase average order value(AOV) and conversions- Raise prices by about 4% for products from both Wacoal and b.tempt‘d
IO Inc.：Revenue plan +30% 、Business Profit plan -＄5 million （loss）Improved by $7.7
million from the previous year
- Continue to improve the efficiency of sales promotion that we see currently. Implement appropriate cost
controls according to sales- Review and revise the pricing strategy across the board to change prices to those that match the
product value from April 2023

China
All figures are in
local currency.

Wacoal China Co., Ltd. ：Revenue plan +54% 、Business Profit plan 22 million yuan
Improvement of 57 million yuan from the previous period➢

First 3D smart & try store to be opened in the U.K.
We will aim to expand sales by linking our own e-commerce and3D smart & try stores
The first 3D smart & try store will open in Bath during the MarchFY2024 term

- Aim to recover sales by +7% from the March FY2020 term in terms of figures excluding the impact ofsettlement adjustments- Hire a designer and a director of the e-commerce business to strengthen product appeal and the e-commercebusiness- Optimize personnel organization and costs according to the sales situation after the restart

Downside risk regarding revenue planning- Slow sales and lower profits due to a deterioration in consumer sentiment caused by rising interest rates meant to curb inflation- Increased manufacturing costs due to continually soaring transportation expenses as well as raw material prices and rising personnel expenses- Various country risks including political changes and conflicts- Recording risk of impairment losses on intangible assets (residual remaining book value of the business: 16.2 billion JPY Wacoal International: 6billion JPY, Wacoal Europe: 10.2 billion JPY)16

I will now continue with an explanation of our overseas business initiatives. Overseas, inaddition to strengthening the EC business, which is the core strength of the current
medium-term business plan, we will continue our efforts to strengthen product capabilities
that meet the characteristics of each market.
Efforts in the US and China businesses, which struggled in the previous fiscal year, aredescribed in the center of the page. With respect to Intimates Online in the US, we willcontinue to work on improving sales promotion efficiency, which is currently showing
positive effects.
In addition, from the perspective of profitability and price competitiveness, the Company
is reviewing its existing uniform pricing structure and is moving toward a tiered pricing
structure.
As for the China business, the situation is gradually recovering from the impact ofinfectious diseases in the previous fiscal year. To expand sales, we are taking steps tostrengthen our ability to develop products that meet the characteristics of our customers
and to improve our competitiveness in the EC market by hiring a business manager withexperience and knowledge in the local EC market, in addition to assigning a designer witha strong track record not only in Japan but also in other countries.
We will implement these strategies, but there are downside risks to our sales plan in major
overseas countries, including Europe, where we performed well in the previous fiscal year,
due to rising prices, geopolitical risks, and financial instability.
By implementing appropriate controls in response to the sales situation, we will aim tosecure targeted profits.

ESG
Sustainability

Climate Change/Human Rights/Resource Circulation/promotion of responsible procurement activities

Promoting responses to environmental and social issues in the supply chain

In April 2022, we established the Sustainability Committee and four Promotion
Subcommittees to strengthen our response to important sustainability issues➢ New NBF hanger* commenced use

The Sustainability Committee meets regularly on the same day as the Board of Directors

to formulate specific measures to address sustainability issues, monitor progress
1 Meetingstatus, and evaluate the status of goal achievement
In the March FY2023 term, seven meetings were held to discuss the "reduction ofgas emissions in the supply chain," "promotion of the adoption of
2 greenhouseenvironmentally friendly materials," "promotion of responsible procurement activities," and"promotion of respect for human rights in the supply chain"promotion system

Subcommittee for
Carbon Neutral

Subcommittee for
Resource Circulation

objective
Achievement of adecarbonized society(Business activities withlow environmental impact)
Achievement of a resource
recycling society andpromotion of waste
reduction

Sustainability
Committee

Initiatives for FY 2023

※NBF: Nihon Body Fashion Association

In order to recycle plastic
resources and reduce CO2
emissions, we havedeveloped a recyclable
hanger that can be recycledfrom other hangers together
with another group in theindustry. To be launched in
the mass merchandiser
channel in July 2023
Initiatives for FY 2024

- Selected partner companies for formulating scenarios(transition plans) for reducing greenhouse gas emissions atdomestic business sites- Acquired energy data from all overseas business sites(offices, warehouses, factories)- Formulate investment plans such as reduction programs andenergy-saving equipment for domestic business sites- Calculate greenhouse gas emissions at overseas business sites
and consider reduction programs at major factories- Start collaborating with suppliers to reduce Scope 3 emissions- Defined environmentally friendly materials (Interim standards
for environmental materials, material mixture ratios)- Established three-year targets for the usage rate ofenvironmentally friendly materials- Established three-year targets to reduce the disposal of
products and residual materials- Consider disclosing information on standards and amount usedof environmentally friendly materials- Promote the development of environmentally friendly
materials- Promoting individual measures to reduce the disposal of
products and residual materials

Subcommittee for
CSR Procurement

Promotion of CSR
procurement activities(Responsible procurement
activities)- Started CSR procurement activities at outsourced factories ofoverseas subsidiaries- Revised standards for on-site audits and supporting audits- Promoted corrective and improvement activities for issues
that arose at outsourced factories- Expand the scope of CSR procurement activities(Start activities for monitoring raw materials and dye houses)- Strengthen monitoring to improve the effectiveness of CSR
procurement activities

Subcommittee for
Human Rights, D&I

Promotion of D&I andrespect for human rights- Conducted a simple assessment of human rights issues in the
supply chain- Conducted interviews with experts in preparation for thelaunch of Human Rights DD- Conducted interviews with experts to promote D&I- Implement human rights risk assessment (identify humanrights risks and select important themes)- Strengthen measures to comply with the revised Act for
Eliminating Discrimination against Persons with Disabilities- Implement human rights education

17

Finally, we would like to explain our ESG initiatives.
In April last year, our Group established a Sustainability Committee and four promotion
subcommittees to strengthen its response to important sustainability issues. The initiativesof each business group during the period under review are described in the table at thebottom of the page.
To reiterate, we will revise our medium-term management plan with the aim of rebuilding
our business performance and quickly achieving a P/B ratio in excess of 1 times throughimproved profitability and capital efficiency. The Board of Directors plans to take the leadin verifying and revising current business strategies to increase the accuracy and speed ofreforms.
We expect to announce the revise in mid-November, which some may think is taking too
long, but we will carefully implement the revise process from multiple perspectives,
including consideration of the introduction of ROIC. Thank you for your understanding.
That is all from me.
We would like to thank all of our investors for their continued support. Thank you for yourattention.

The information contained in this document has been prepared based on information available at thetime of this publication. The company does not warrant or promise that the information will lead tosuccessful results. This document is subject to change without notice.
While we exercise great care when posting this information, we are not responsible for any errors in theinformation published.

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