[Translation]
Consolidated Business Results for the First Quarter of the Fiscal Year Ending March 31, 2020
[U.S. GAAP]
July 30, 2019
Listed Company: Wacoal Holdings Corp.
Code Number: 3591
(URL: https://www.wacoalholdings.jp/)
Representative: Position: Representative Director and President
Name: Hironobu Yasuhara
For Inquiries: Position: Managing Director, General Manager of Corporate Planning
Name: Akira Miyagi

Stock Exchange: Tokyo

Tel: +81 (075) 682-1010

Scheduled quarterly report submission date:August 9, 2019
Scheduled dividend payment start date:
Supplementary materials regarding quarterly business results: None
Explanatory meeting regarding quarterly business results:
None(Amounts less than 1 million yen have been rounded )1.

First Quarter of the Fiscal Year Ending March 31, 2020 (April 1, 2019 – June 30, 2019)(1)

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

Net Sales

Millions of Yen

Operating Income%

First Quarter ended
47,313 (4.2)
June 30, 2019
First Quarter ended
49,373
1.4
June 30, 2018
(Note)
Quarterly comprehensive income:First Quarter ended
June 30, 2019
First Quarter ended
June 30, 2018(2)

Millions of Yen%

Income Before
Income Taxes andEquity in Net Incomeof AffiliatedCompanies
Millions of Yen%

Net Income
Attributable to
Wacoal Holdings
Corp.
Millions of Yen

%

3,644

(17.1)

1,520(83.0)

1,192(81.0)

4,397

(0.7)

8,921

58.1

6,289

59.6

(495) million yen (-%) for the first quarter ended
June 30, 2019
5,573 million yen ((23.8) %) for the first quarter ended
June 30, 2018

Net Income
Attributable to
Wacoal Holdings
Corp. Per Share

Diluted Net Income
Attributable to
Wacoal Holdings
Corp. Per Share

Yen

Yen

18.33

18.26

93.51

93.17

Consolidated Financial Condition

As of June 30, 2019
As of the end of Fiscal
Year (March 31, 2019)tk-740821

Total Assets

Total Equity(Net Assets)

Total
Shareholders’EquityTotal
Shareholders’Equity Ratio

Millions of Yen

Millions of Yen

Millions of Yen%

291,142

216,331

211,679

72.7

3,272.82

281,767

221,144

216,49476.8

3,321.57

Shareholders’Equity Per Share
Yen

2.

Status of Dividends

End of First
Quarter

Annual Dividend
End of Second End of Third
Quarter
Quarter

Yen

Yen

Yen

Fiscal Year Ended March 31, 2019
–
36.00
–
Fiscal Year Ending March 31, 2020–
Fiscal Year Ending March 31, 2020
40.00–
(Estimates)(Note) Revision of estimated dividends announced during the latest quarter: None
(Note)

3.

Year-End

Total

Yen

Yen

36.00

72.00

40.00

80.00

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
Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2020 (April 1, 2019 - March 31,
2020)(% indicates increase (decrease) from the previous fiscal year)

Net Sales

Millions of Yen %Operating
IncomeIncome Before
Income Taxes
Net Income
Net Income
and Equity in Net Attributable toAttributable to
Income of
Wacoal Holdings Wacoal Holdings
AffiliatedCorp.
Corp. Per Share
Companies

Millions of Yen % Millions of Yen %Millions of Yen %YenAnnual
200,000 3.0 11,000 125.5
12,000 444.7
9,000
138.41(Note) Revision of forecast of consolidated business results announced during the latest quarter: None

tk-740821

Notes(1)

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

(2)

Application of simplified accounting methods and specific accounting methods: None

(3)

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 “2. Consolidated Quarterly Financial Statements and Accompanying Notes (5)Notes to Consolidated Quarterly Financial Statements (Changes in Accounting Policy).”(4)

Number of Issued Shares (Common Stock)
First Quarter ended
June 30, 2019
(i)
(ii)
(iii)

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

Fiscal Year ended
March 31, 2019

68,589,042 shares

70,689,042 shares

3,911,253 shares

5,510,891 shares

65,025,473 shares

67,254,020 shares*These quarterly financial statements are exempt from the review procedures.

*Cautionary Statement regarding Forecast 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.

tk-740821

Table of Contents for Attached Materials
1.

Qualitative Information regarding Consolidated Performance during the First Quarter ------------------------------ 2(1)

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

Qualitative Information regarding Consolidated Financial Condition --------------------------------------------------- 4(3)

Qualitative Information regarding Forecast of Consolidated Business Results ---------------------------------------- 5

2.

Consolidated Quarterly Financial Statements and Accompanying Notes ----------------------------------------------- 6(1)

Consolidated Quarterly Balance Sheets -------------------------------------------------------------------------------------- 6(2)

Consolidated Quarterly Statements of Income ----------------------------------------------------------------------------- 8(3)

Consolidated Quarterly Statements of Comprehensive Income ---------------------------------------------------------- 8(4)

Consolidated Quarterly Statements of Cash Flows ------------------------------------------------------------------------ 9(5)

Notes to Consolidated Quarterly Financial Statements ------------------------------------------------------------------ 10(Notes on Going Concern) -------------------------------------------------------------------------------------------------- 10(Notes on Significant Changes in the Amount of Total Shareholders’ Equity) -------------------------------------- 10(Changes in Accounting Policy) ------------------------------------------------------------------------------------------- 10(Segment Information) ------------------------------------------------------------------------------------------------------- 11(6)

Status of Sales ----------------------------------------------------------------------------------------------------------------- 12

tk-740821

-1-

1.

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

Qualitative Information regarding Consolidated Business Results(i)Performance Overview of the Three Months ended June 30, 2019

Net sales
Cost of sales
Sales profit
Selling, general and administrative expenses
Operating income
Other income (expenses)
A: 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: Income before income taxes and equity
in net income of affiliated companies not taking into
account A

Previous First Quarter(ended June 30, 2018)
Amount49,373
21,87827,49523,098
4,397
1,363
3,161

Current First Quarter(ended June 30, 2019)
Amount47,313
20,406
26,90723,2633,644
814(2,938)(Millions of Yen)
Increased/(Decreased) fromprevious first quarter
Amount%(2,060)(4.2)(1,472)
(6.7)
(588)
(2.1)
+165
+0.7
(753)
(17.1)(549)(40.3)(6,099)
-

8,921

1,520

(7,401)(83.0)

6,289

1,192

(5,097)(81.0)

5,760

4,458

(1,302)(22.6)

Our group has formulated a new mid-term business plan, with the first year starting fiscal year ending March 31,
2020.
For details, please see our website https://www.wacoalholdings.jp/ir/library/plan_summary.html.
Consolidated sales for the three months ended June 30, 2019 (April 1, 2019 – June 30, 2019) decreased by 4%
from such sales for the corresponding period of the previous fiscal year, a result that was generally consistent with our plan.
Sales from our domestic business remained at about the same level as such sales for the corresponding period of theprevious fiscal year due to an increase in revenue from Wacoal Corp.; revenue from our overseas business decreased by
8% as compared to such revenue for the corresponding period of the previous fiscal year due to weak sales in the UnitedStates and Europe; and each revenue from both Peach John business and other business segments decreased as compared tosuch revenue for the corresponding period of the previous fiscal year.
Consolidated operating income decreased by 17% from such operating income for the corresponding period of theprevious fiscal year. In our domestic business, we recorded a 6% decrease in profit as a result of an increase in selling,
general and administrative expenses incurred at Wacoal Corp. In our overseas business, we also recorded a decrease inprofit due to decreased revenue. In addition, we recorded an operating loss for both our Peach John business and otherbusiness segments due to decreased revenue. The actual operating income, however, exceeded the budgeted operating
income predicted for the subject period.
Consolidated income before income taxes and equity in net income of affiliated companies fell by 83% from suchconsolidated income for the corresponding period of the previous fiscal year. This was impacted by the recognition ofvaluation loss on marketable securities and investments of 2.94 billion yen for the current first quarter, while we recorded
valuation gain of 3.16 billion yen on marketable unrealized securities and investments for the corresponding period of theprevious fiscal year (under A in the table above: 6.10 billion yen decreased from previous first quarter).
The key exchange rates used for the current consolidated first quarter (previous first quarter) were: 109.90 yen(109.07 yen) to the U.S. dollar, 141.16 yen (148.55 yen) to the Sterling pound, and 16.33 yen (17.05 yen) to the Chineseyuan.

tk-740821

-2-

(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 first quarter

Previous First Quarter(ended June 30, 2018)
Distribution
AmountRatio (%)
49,373100.0
27,47855.7
14,728
29.8
2,707
5.5
4,460
9.0

Current First Quarter(ended June 30, 2019)
Distribution
AmountRatio (%)
47,313100.0
27,401
57.9
13,597
28.7
2,587
5.5
3,728
7.9

Previous First Quarter(ended June 30, 2018)

Current First Quarter(ended June 30, 2019)

Increased/(Decreased) fromprevious first quarter

AmountAmount% to Sales

Amount

%

7.7
6.9
13.7
-

(753)
(113)
(483)
(97)
(60)

(17.1)(5.7)(20.6)
-

4,397
1,994
2,345
55
3

% to Sales
8.9
7.3
15.9
2.0
0.1

3,644
1,881
1,862
(42)
(57)

Amount%(2,060)(77)(1,131)
(120)
(732)

(4.2)
(0.3)
(7.7)
(4.4)
(16.4)

Wacoal Business (Domestic)

Sales attributable to our “Wacoal Business (Domestic)” segment remained at about the same level as such sales forthe corresponding period of the previous fiscal year. In our wholesale business of Wacoal Corp., sales of “Synchro Bra”
products sold at general merchandise stores under the Wing brand were strong. However, revenue from our wholesale
business decreased due to weak sales of prestige lineup products, maternity innerwear and junior’s innerwear handled at
department stores, as well as weak sales of functionality tights under the “CW-X” brand. In our retail business, sales of ourbrassieres with better design “Grama-Rich” were strong. In addition, revenue from our retail business increased as a resultof an increase in the number of shop visitors, helped by the Golden Week holidays and reward points campaign. In our
website business, we recorded an increase in revenue as a result of sales expansion of our “BRAGENIC” and“Grama-Rich” products sold on our e-commerce website. On the other hand, sales from Ai Co., Ltd. decreased by 10% ascompared to such sales for the corresponding period of the previous fiscal year due to a decrease in sales from ourswimwear business, which was impacted by our management decision to focus on profitability and refrain from expanding
seasonal shops.
Operating income decreased by 6% as compared to such operating income for the corresponding period of theprevious fiscal year. Wacoal Corp. recorded a decrease in operating profit due to increases in IT-related expenses incurred
for the implementation of our omni-channel strategies. On the other hand, operating loss recorded at Ai Co., Ltd.
significantly improved, helped by the improved gross profit rate resulting from the reform of its business structure andreduction in selling, general and administrative expenses as a result of our revised strategies for shop openings.
b.

Wacoal Business (Overseas)

Overall sales attributable to our “Wacoal Business (Overseas)” segment on a Japanese yen basis decreased by 8%
as compared to such sales for the corresponding period of the previous fiscal year. Revenue from Wacoal International
Corp. (the United States), Wacoal Europe and Wacoal China Co., Ltd. all decreased (due to the impact of exchange
fluctuations for Wacoal China) as compared to such corresponding revenue for the corresponding period of the previous
fiscal year. In the United States, sales were affected by weak over-the-counter sales at department stores (physical stores)
and earlier purchases of seasonal products for this spring (delivered during the fourth quarter of the previous fiscal year) bystores handling Wacoal brand products. In Europe, sales in the United Kingdom significantly decreased due to certain
department stores whose business conditions deteriorated. In China, we maintained a high growth rate while enhancing
our alliance with third-party e-commerce websites. In order to further gain support from the young adult segment, webegan selling our brassieres “AMPHI” through such third-party e-commerce websites.
Operating income on a Japanese yen basis decreased by 21% as compared to such operating income for thecorresponding period of the previous fiscal year. Operating income from our business in the United States and Europe bothdecreased due to the impact of decreased revenue. In addition, operating income from our business in China also decreased
due to a higher percentage of discounted sales and a lower gross profit rate resulting from the recognition of valuation loss
incurred for inventory in preparation of brand classification.
tk-740821

-3-

c.

Peach John BusinessOverall sales attributable to our “Peach John Business” segment fell by 4% as compared to such sales for thecorresponding period of the previous fiscal year. While sales of regular-price products in our domestic business remained
at about the same level as such sales for the corresponding period of the previous fiscal year, revenue from our own
e-commerce website and retail stores both decreased as a result of reducing the amount of sales subject to discounts. In
Taiwan, sales were strong as a result of shop openings in Taichung, while the growth rate of sales from our own
e-commerce was weak.
We recorded an operating loss due to decreased revenue from our domestic business and weak growth from ourChinese business.
d.

Other

Overall sales attributable to our “Other” segment decreased by 16% from such sales for the corresponding periodof the previous fiscal year. While a decrease in sales of our private products of Lecien Corporation (“Lecien”) handled atcore general merchandise stores seemed to have bottomed out, Lecien recorded a 11% decrease in revenue as compared tosuch revenue for the corresponding period of the previous fiscal year following reassessment of its business of clothing
fabrics and laces to emphasize profitability. Nanasai Co., Ltd. recorded a 24% decrease in revenue as compared to suchsales for the corresponding period of the previous fiscal year due to the absence of the one-time increase in revenue(large-scale construction for renovation of department store) in the corresponding period of the previous fiscal year.
We recorded an operating loss for our “Other” segment in total due to the impact of decreased revenue.
(2)

Qualitative Information regarding Consolidated Financial Condition(i)

Assets, Liabilities and Total Shareholders’ Equity

Our total assets as of the end of the current consolidated first quarter were 291,142 million yen, an increase of
9,375 million yen from the end of the previous fiscal year, mainly due to the recognition of operating leases right-of-use
assets following the changes in the current accounting policy.
Our total liabilities were 74,811 million yen, an increase of 14,188 million yen from the end of the previous fiscal
year, mainly due to similar factor as the assets section, the recognition of operating lease liabilities following the changes in
the current accounting policy, as well as increases in refund liability and other current liabilities.
Total Wacoal Holdings Corp. shareholders’ equity was 211,679 million yen, a decrease of 4,815 million yen fromthe end of the previous fiscal year, due to a decrease in retained earnings as a result of cash dividend payments.
As a result of the above, our total shareholders’ equity ratio as of the end of the current consolidated first quarter
was 72.7%, a decrease of 4.1% from the end of the previous fiscal year.
(ii)

Cash Flows

Cash and cash equivalents as of the end of the consolidated first quarter of the current fiscal year were 29,144
million yen, a decrease of 989 million yen from the end of the previous fiscal year.
(Cash Flow Provided by Operating Activities)
Cash flow provided by operating activities was 1,763 million yen, a decrease of 1,127 million yen as compared tothe corresponding period of the previous fiscal year, after adjustments for changes in assets and liabilities to our net incomeof 1,230 million yen plus adjustments for depreciation, amortization and deferred income taxes.
(Cash Flow Used in Investing Activities)
Cash flow used in investing activities was 308 million yen, a decrease of 38 million yen as compared to thecorresponding period of the previous fiscal year, due to capital expenditures and payments to acquire tangible andintangible assets which were more than offset a decrease in time deposits.

tk-740821-4-

(Cash Flow Used in Financing Activities)
Cash flow used in financing activities was 1,882 million yen, as compared to 1,370 million yen of cash inflow for
the corresponding period of the previous fiscal year, due to cash dividend payments and repurchase of treasury stock.
(3)

Qualitative Information regarding Forecast of Consolidated Business Results

We have not revised our forecast of consolidated business results for the fiscal year ending March 31, 2020 since
our announcement on May 15, 2019. Also, the impact of any change in valuation gain or loss on equity securities has notbeen reflected in our forecast of consolidated business results.

tk-740821

-5-

2.

Consolidated Quarterly Financial Statements and Accompanying Notes(1)

Consolidated Quarterly Balance SheetsI.

Accounts

Previous Fiscal Year
as of March 31, 2019

(Assets)

Millions of Yen

Current Consolidated
First Quarteras of June 30, 2019
Millions of Yen

Increase/(Decrease)
Millions of Yen

Current assets:
Cash and cash equivalents

30,13329,144(989)

Time deposits

4,004

2,892

(1,112)Marketable securities

446

325

(121)

Notes and accounts receivable

24,98923,862(1,127)

Allowance for doubtful receivables
Inventories(229)
42,508(223)
44,1096
1,601

Return assets

1,180

1,180

0

Other current assets

4,985

7,046

2,061

108,016

108,335

319

Land21,54921,535(14)

Buildings and structures

74,03374,017(16)

Machinery and equipment

18,914

18,477(437)

Total current assets
II. Property, plant and equipment:

Construction in progress

478

690

212

114,974

114,719(255)(61,704)(61,726)(22)

53,27052,993(277)

Operating leases right-of-use assets-

13,703

13,703

Investments in affiliated companies

21,85921,459(400)

Investments

63,372

60,235(3,137)

Goodwill

11,954

11,278(676)

Other intangible assets

12,297

12,135(162)

Prepaid pension expense

3,990

4,007

17

Deferred income taxes

1,362

1,365

3

Other

5,647

5,632

(15)

120,481

129,8149,333

281,767

291,142

9,375

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

Total other assets
Total assets

tk-740821

-6-

I.

Accounts

Previous Fiscal Year
as of March 31, 2019

(Liabilities)

Millions of Yen

Current Consolidated
First Quarteras of June 30, 2019
Millions of Yen

Increase/(Decrease)
Millions of Yen

Current liabilities:
Short-term bank loans

8,116

9,974

1,858

Trade notes payable

1,155

1,647

492

Trade accounts payable

10,63810,029(609)

Notes and accounts payable:

Other payables

6,548

4,999

(1,549)18,341

16,675(1,666)

Accrued payroll and bonuses

7,209

5,440

(1,769)

Income taxes payable

2,759

1,205

(1,554)

Refund liability

3,482

3,595

113

Short-term operating lease liabilities

-

4,431

4,431

3,955

7,520

3,565

Total current liabilities

43,862

48,8404,978II. Long-term liabilities:
Liability for termination and retirement
benefits
Deferred income taxes

1,828

1,812

(16)

12,567

12,451(116)

Other current liabilities

Long-term operating lease liabilities

-

9,332

9,332

2,366

2,376

10

Total long-term liabilities

16,761

25,971

9,210

Total liabilities

60,62374,811

14,18813,26013,260-

Other long-term liabilities(Equity)I.

Common stock

II. Additional paid-in capital

29,80729,807(0)III. Retained earnings
IV. Accumulated other comprehensive (loss)
income:Foreign currency translation adjustments

193,139

185,532(7,607)

1,551

(412)

(1,963)Pension liability adjustments(5,679)(5,473)206

V. Treasury stock, at cost
Total Wacoal Holdings Corp.
shareholders’ equity
VI. Noncontrolling interests(15,584)(11,035)

4,549

216,494

211,679(4,815)

4,650

4,652

2

Total equity

221,144

216,331(4,813)

Total liabilities and equity

281,767

291,142

9,375

tk-740821

-7-

(2)

Consolidated Quarterly Statements of Income

Accounts

I.

Net Sales

Previous Consolidated
Cumulative First Quarter(From April 1, 2018
to June 30, 2018)
Millions of Yen%

Current Consolidated
Cumulative First Quarter(From April 1, 2019
to June 30, 2019)
Millions of Yen%

Increase/(Decrease)
Millions of Yen

49,373100.0

47,313100.0(2,060)

Cost of sales

21,87844.3

20,40643.1(1,472)

Selling, general and administrative expenses

23,09846.8

23,263

49.2

165

Total operating costs and expenses

44,97691.1

43,66992.3(1,307)

Operating income

4,397

8.9

3,644

7.7

(753)

II. Operating costs and expenses:

III. Other income (expenses):(3)

Interest income

60

87

27

Interest expense

(8)

(6)

2

Dividend income
Gain or loss on sales or exchange ofmarketable securities and investments - net
Valuation loss on marketable securities andinvestments - net
Other – net

761

810

49

140

-

(140)

3,161

(2,938)(6,099)

410

(77)

(487)

Total other (expenses) income
Income before income taxes and equity in net
income of affiliated companies
Income taxes
Income before equity in net income of affiliatedcompanies
Equity in net income of affiliated companies

4,524

9.2

(2,124)(4.5)(6,648)

8,921

18.1

1,520

3.2

(7,401)

2,834

5.8

469

1.0

(2,365)

6,087

12.3

1,051

2.2

(5,036)

248

0.5

179

0.4

(69)

Net income
Net income attributable to noncontrollinginterests
Net income attributable to Wacoal Holdings
Corp.

6,335

12.8

1,230

2.6

(5,105)

(46)

(0.1)

(38)

(0.1)

8

6,289

12.7

1,192

2.5

(5,097)

Consolidated Quarterly Statements of Comprehensive Income

Accounts

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

Previous Consolidated
Cumulative First Quarter(From April 1, 2018
to June 30, 2018)
Millions of Yen

Current Consolidated
Cumulative First Quarter(From April 1, 2019
to June 30, 2019)
Millions of Yen

Increase/(Decrease)
Millions of Yen

6,335

1,230

(5,105)(659)(1,931)(1,272)

Unrealized loss on securities

(104)

-

104

Pension liability adjustments

1

206

205

Other comprehensive loss

(762)

(1,725)(963)

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

5,573

(495)

(6,068)

28

(70)

(98)

5,601

(565)

(6,166)

tk-740821

-8-

(4)

Consolidated Quarterly Statements of Cash Flows

Accounts

Previous Consolidated Cumulative
First Quarter(From April 1, 2018
to June 30, 2018)
Millions of Yen

I. Operating activities
1. Net income
2. Adjustments to reconcile net income to net cash provided
by operating activities(1) Depreciation and amortization(2) Allowance for returns and doubtful receivables - net(3) Deferred income taxes(4) Loss (gain) on sales or disposal of property, plant andequipment - net(5) Gain on sales or exchange of marketable securities andinvestments – net(6) Valuation loss (gain) on marketable securities andinvestments – net(7) Equity in net income of affiliated companies,
less dividends received(8) Changes in assets and liabilities
Decrease in notes and receivable
Increase in inventories
Increase in return assets
Increase in other current assets
Decrease in notes and accounts payable
Increase in refund liability
Increase (decrease) in liability for termination andretirement benefits
Increase in other liabilities(9) Other
Net cash provided by operating activities
II.
1.
2.
3.
4.
5.
6.
7.
8.
9.

Investing activities
Increase in time deposits
Decrease in time deposits
Proceeds from sales and redemption of equity securities
Payments to acquire equity securities
Proceeds from redemption of debt securities
Proceeds from sales of property, plant and equipment
Capital expenditures
Payments to acquire intangible assets
Other
Net cash used in investing activities

III. Financing activities
1. Net increase in short-term bank loans with original
maturities of three months or less
2. Repayment of long-term debt
3. Repurchase of treasury stock
4. Dividends paid on common stock
5. Dividends paid to noncontrolling interests
6. Proceeds from stock issuance to noncontrolling interests
Net 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 period
VII. Cash and cash equivalents, end of period

Current Consolidated Cumulative
First Quarter(From April 1, 2019
to June 30, 2019)
Millions of Yen

6,335

1,230

1,384
(2,274)
1,220

1,384
31
(658)

(1)

22

(140)

-

(3,161)

2,938

234

341

898
(822)
(1,182)(2,470)(2,077)
3,565

953(1,984)(0)(2,091)(1,176)
113

(165)

264

1,758
(212)
2,890

335
61
1,763

(1,091)
1,167
596
(7)
109
8
(475)
(653)
0
(346)

(122)
1,156
(53)
330
11
(775)
(864)
9
(308)

5,361

1,945

(13)
(1,362)(2,425)
(191)
1,370

(13)
(1,400)(2,346)(184)
116(1,882)

378

(562)

4,292
29,487
33,779(989)
30,13329,144

8
3,494

6
3,689

395

571

Additional Cash Flow Information
Cash paid for:
Interest
Income taxes
Noncash investing activities
Acquisition of fixed assets by assuming payment
obligation

tk-740821

-9-

(5)

Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Total Shareholders’ Equity)
Not applicable.
(Changes in Accounting Policy)
LeasesThe new accounting guidance related to leases (ASU2016-02, 2018-01, 2018-11) has been adopted starting withthe current consolidated fiscal year. This guidance requires an entity to recognize right-to-use assets and lease liabilities on
the balance sheet for those leases classified as operating leases under the previous U.S. GAAP with a few exceptions. Ourgroup has adopted the modified retrospective approach, electing to apply the transition requirements at the effective datewith a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption, and prior periods
were not restated. Our group elected to apply the package of practical expedients permitted under the transition guidance
which does not require to reassess whether any expired or existing contracts are leases, lease classification and initial direct
costs. Our group also elected to apply the practical expedient not to assess whether existing or expired land easements thatwere not previously accounted for as leases are leases. As a result of this adoption, operating leases right-of-use assets andoperating leases liabilities of 14,550 million yen were recorded in the consolidated balance sheet as of April 1, 2019. In
addition, the application of deferred tax accounting resulted in the recording of deferred tax liabilities of 515 million yen
and the decreasing of the opening balance of retained earnings as a cumulative-effect adjustment in the same amount. The
adoption of this guidance is not expected to have a material impact on our group’s cash flows.

tk-740821- 10 -

(Segment Information)(i)

Operating Segment Information

Previous Consolidated Cumulative First Quarter (From April 1, 2018 to June 30, 2018)(Millions of Yen)
Wacoal
Wacoal businessbusiness(Domestic)(Overseas)

Peach Johnbusiness

Other

Total

Elimination

Consolidated

Net sales(1) External customers

27,47814,728

2,707

4,460

49,373-49,373(2) Intersegment

224

2,760

271

1,338

4,593

(4,593)-

Total

27,702

17,488

2,978

5,798

53,966(4,593)49,373Operating income

1,994

2,345

55

3

4,397

-

4,397

Current Consolidated Cumulative First Quarter (From April 1, 2019 to June 30, 2019)(Millions of Yen)
Wacoal
Wacoal businessbusiness(Domestic)(Overseas)

Peach Johnbusiness

Other

Total

Elimination

Consolidated

Net sales
27,401

13,597

2,587

3,728

47,313-47,313(2) Intersegment

208

2,907

194

1,331

4,640

(4,640)-Total

27,60916,504

2,781

5,059

51,953(4,640)47,313Operating income (loss)

1,881

1,862

(42)

(57)

3,644

-

3,644

(1) External customers(Note)

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,
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, construction of stores and interior design, etc.

(ii)

Segment Information by Region

Previous Consolidated Cumulative First Quarter (From April 1, 2018 to June 30, 2018)(Millions of Yen)Japan

Asia/Oceania

Europe/N.A.

Consolidated

Net sales
External customers
Distribution ratio

34,477
69.8%

5,837
11.8%

9,059
18.4%

49,373100.0%

Operating income

2,116

679

1,602

4,397

Current Consolidated Cumulative First Quarter (From April 1, 2019 to June 30, 2019)(Millions of Yen)Japan

Asia/Oceania

Europe/N.A.

Consolidated

Net sales
External customers
Distribution ratio

33,420
70.6%

5,630
11.9%

8,263
17.5%

47,313100.0%

Operating income

1,858

669

1,117

3,644

(Note)

1.
2.

3.

tk-740821

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.

- 11 -

(6)Status of Sales

Type of productFoundationand lingerie
Innerwear Nightwear
Children’s
underwear
Subtotal
Outerwear/Sportswear
Hosiery
Other textile goods andrelated products
Other
Total

tk-740821

Previous Consolidated Cumulative
First Quarter(From April 1, 2018 toJune 30, 2018)
AmountDistribution Ratio
Millions of Yen%

Current Consolidated Cumulative
First Quarter
Increase/(Decrease)(From April 1, 2019 toJune 30, 2019)
AmountDistribution Ratio
AmountRatio
Millions of Yen%
Millions of Yen%

37,15675.3

36,786

77.8

(370)

(1.0)

2,288

4.6

1,993

4.2

(295)

(12.9)

370

0.7

347

0.7

(23)

(6.2)

39,814
3,631
493

80.6
7.4
1.0

39,126
3,185
485

82.7
6.7
1.0

(688)
(446)
(8)

(1.7)
(12.3)
(1.6)

2,271

4.6

1,935

4.1

(336)

(14.8)

3,164
49,373

6.4
100.0

2,582
47,313

5.5
100.0

(582)
(2,060)(18.4)(4.2)- 12 -