[Translation]
Consolidated Business Results for the Second Quarter of the Fiscal Year Ending March 31, 2024
[IFRS]
November 9, 2023
Stock Exchange: Tokyo

Listed Company: Wacoal Holdings Corp.
Code Number: 3591
(URL: https://www.wacoalholdings.jp/)
Representative: (Position) Representative Director, President and CEO
For Inquiries: (Position) Corporate Officer, Head of Corporate Planning Dept.

(Name) Masaaki Yajima(Name) Katsuya Hirooka
Tel: +81 (075) 682-1010

Scheduled quarterly report submission date:November 14, 2023
Scheduled dividend payment start date:
December 8, 2023
Supplementary materials regarding quarterly business results: Yes
Explanatory meeting regarding quarterly business results:
Yes (for institutional investors, analysts and the press)(Amounts less than 1 million yen have been rounded)

1.

Second Quarter of the Fiscal Year Ending March 31, 2024 (April 1, 2023 – September 30, 2023)(1)

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

Business
ProfitRevenue
Millions of Yen

Second Quarter
ended September
30, 2023
Second Quarter
ended September
30, 2022%

Operating
Loss (Profit)

Millions of Yen%

Millions of Yen(Loss) Profit
Before Taxes%(Loss) Profit

Millions of Yen%

Millions of Yen%

95,130 (2.4)

3,816 (12.2)(3,384)-(2,739)-(4,396)-

97,506 13.0

4,344

4,001

(13.3)

5,881

8.0

4,300

-

14.7

(Loss) Profit
Attributable to
Owners of Parent

Total
Comprehensive
IncomeBasic (Loss)
Earnings
per Share

Diluted (Loss)
Earnings per Share

Millions of Yen

Millions of Yen %

Yen

Yen

%

Second Quarter
ended September(4,404)
8,193 (28.4)(76.09)(76.09)30, 2023
Second Quarter
ended September
4,218
11,44069.19
68.89
30, 2022(Note) 1. Business profit is calculated by subtracting cost of sales, and selling, general andadministrative expenses from revenue.
2. Following the adoption of IAS 12 Income Taxes (as amended in May 2021), the figures forthe second quarter ended September 30, 2022 represent the retrospectively adjusted figures.
The percentage change in profit, profit attributable to owners of parent and total
comprehensive income compared to the corresponding period of the previous fiscal year is
not shown.

-1-

(2)

Consolidated Financial Condition
Total Assets

Total Equity

Equity Attributable to
Owners of Parent

Ratio of Equity
Attributable to
Owners of Parent

Millions of Yen

Millions of Yen

Millions of Yen%

As of September 30, 2023
287,948
215,910
212,533
73.8
As of the end of Fiscal
285,659
213,482
210,197
73.6
Year (March 31, 2023)(Note) Following the adoption of IAS 12 Income Taxes (as amended in May 2021), the figures for the fiscal year ended
March 31, 2023 represent the retrospectively adjusted figures.
2.

Status of Dividends

End of First
Quarter
Yen

Annual Dividend
End of Second End of Third
Quarter
Quarter
Yen

Yen

Fiscal Year Ended March 31, 2023
–
40.00
–
Fiscal Year Ending March 31, 2024–
50.00
Fiscal Year Ending March 31, 2024–
(Estimates)(Note) Revision of estimated dividends announced during the latest quarter: No
3.

Year-End

Total

Yen

Yen

40.00

80.00

50.00

100.00

Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31,
2024)(% indicates increase (decrease) from the previous fiscal year)

Revenue

Business Profit

Operating Loss

Loss Before
Taxes

Millions of Yen %Millions of Yen %Millions of Yen %Millions of Yen %LossAttributable to
Owners of
ParentBasic Loss per
Share

Millions of Yen %YenAnnual196,000 3.9
1,700 (58.6)(12,000)(11,200)(10,800)(Note) Revision of forecast of consolidated business results announced during the latest quarter: Yes-2-(186.60)

Notes(1)

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

(2)

Changes in accounting policies and/or accounting estimates:(i) Changes in accounting policies required by IFRS: Yes(ii) Changes in accounting policies other than (i) above: None(iii) Changes in accounting estimates: None(3)

Number of Issued Shares (Common Stock)
Second Quarter ended
September 30, 2023
(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 second quarter (second
quarter ended September 30):

Fiscal Year ended
March 31, 2023

61,000,000 shares

64,500,000 shares

4,038,807 shares

6,487,185 shares

57,878,570 shares

60,965,308 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. For notes on conditions used for the forecast of business results and cautionary statements
regarding forecast of business results, please see “1. Qualitative Information regarding Consolidated Performance during
the Second Quarter – (3) Qualitative Information regarding Forecast of Consolidated Business Results” on page [9] of theattached materials.

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Table of Contents for Attached Materials
1.

Qualitative Information regarding Consolidated Performance during the Second Quarter ------------------- 5(1)

Qualitative Information regarding Consolidated Business Results ---------------------------------------------- 5(2)

Qualitative Information regarding Consolidated Financial Condition ------------------------------------------ 8(3)

Qualitative Information regarding Forecast of Consolidated Business Results -------------------------------- 92.

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

Condensed Quarterly Statement of Financial Position ----------------------------------------------------------- 10(2)

Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated
Statement of Comprehensive Income ------------------------------------------------------------------------------ 12(3)

Condensed Quarterly Consolidated Statement of Changes in Equity ------------------------------------------ 14(4)

Condensed Quarterly Consolidated Statement of Cash Flows -------------------------------------------------- 15(5)

Notes to Condensed Quarterly Consolidated Financial Statements -------------------------------------------- 17(Notes on Going Concern) ------------------------------------------------------------------------------------------- 17(Changes in Accounting Policies) ---------------------------------------------------------------------------------- 17(Segment Information) ----------------------------------------------------------------------------------------------- 18

-4-

1.

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

Qualitative Information regarding Consolidated Business Results(i)Performance Overview of the Six Months ended September 30, 2023
(Millions of Yen)

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

Previous Consolidated
Cumulative Second
Quarter(From April 1, 2022 toSeptember 30, 2022)
Amount97,506
41,341
56,16551,821
4,344
1,036
1,379
4,001
1,055
552
1,377
5,881
4,218

Current Consolidated
Cumulative Second
Quarter(From April 1, 2023 to
September 30, 2023)
Amount95,13041,446
53,68449,868
3,816
748
7,948
(3,384)
1,333
152
(536)
(2,739)(4,404)

Increased/(Decreased) fromprevious consolidated
cumulative
second quarter
Amount(2,376)+105(2,481)(1,953)(528)(288)+6,569(7,385)+278(400)(1,913)

%
(2.4)
+0.3
(4.4)
(3.8)
(12.2)(27.8)+476.4+26.4(72.5)-(8,620)(8,622)-Business environment surrounding our group in Japan during the current consolidated cumulative second
quarter (April 1, 2023 – September 30, 2023) was extremely challenging due to sluggish sales of our medium-priced
products as our customers became more budget-conscious in the face of the rising inflation. In overseas, our sales
remained weak across major regions due to the impact of downward pressure on consumption in an unstableeconomic environment. In addition, the suspension of shipments at Wacoal Europe Ltd. due to a system failurecaused by unauthorized access that occurred in mid-September also contributed to the decrease in sales.
As a result of the above, for the current consolidated cumulative second quarter, consolidated revenue was95.13 billion yen (a decrease of 2.4% as compared to the corresponding period of the previous fiscal year).
Consolidated business profit was 3.82 billion yen (a decrease of 12.2% as compared to the corresponding period of
the previous fiscal year) due to the impact of decreased revenue and a higher cost of sales ratio. We recorded aconsolidated operating loss of 3.38 billion yen (as compared to an operating profit of 4.00 billion yen for thecorresponding period of the previous fiscal year) due to the recording of impairment charge of 7.43 billion yen
related to Wacoal International Corp. (U.S.) in connection with the business withdrawal and liquidation of Intimates
Online, Inc. (“Intimates Online”) in addition to the decrease in business profit.
In 2019, Wacoal International Corp. (U.S.), our consolidated subsidiary, acquired Intimates Online, which
operates the “LIVELY” brand, in order to realize growth in the e-commerce business and effective use ofmanagement resources of both parties. However, due to the entry of competitors into the digital market andrestrictions on targeted advertising as a result of increasing restrictions on the use of personal information, Intimates
Online’s performance after the acquisition fell far short of our expectations and did not turn profitable. Under thesecircumstances, we have considered various possibilities for future business development, but have determined that it
will be difficult to improve the performance of the LIVELY business, and have resolved to withdraw from thebusiness and to liquidate Intimates Online.
Consolidated loss before taxes was 2.74 billion yen (as compared to 5.88 billion yen of consolidated profit
before taxes for the corresponding period of the previous fiscal year) and consolidated loss attributable to owners ofparent was 4.40 billion yen (as compared to 4.22 billion yen of consolidated profit attributable to owners of parent forthe corresponding period of the previous fiscal year) due to the consolidated operating loss as well as impairment
charges of investments accounted for using equity method.

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The key exchange rates used for the current consolidated cumulative second quarter (the corresponding
period of the previous fiscal year) were: 141.00 yen (133.97 yen) to the U.S. dollar; 177.49 yen (162.89 yen) to theSterling pound; and 19.75 yen (19.88 yen) to the Chinese yuan.
Our group has reviewed the medium-term management plan with the aim of “improving profitability andcapital efficiency”, which is one of our priority measures for the current consolidated fiscal year. We reexamined andformulated specific strategies under the main themes of “rebuilding brand and customer strategies” and “accelerating
cost structure reforms” for our business in Japan and “strengthening e-commerce business and improving businessefficiency” for our overseas business. For details on the revised medium-term management plan, please visit our
website.
“Announcement of Revised Medium-Term Management Plan”:
https://www.wacoalholdings.jp/en/ir/topics/files/wacoalholdingsnews20231109_4en.pdf“Announcement Regarding Variances between the Forecast of Consolidated Business Results and Actual
Consolidated Business Results for the Six-Month Period ended September 30, 2023, Revisions to the Forecast ofConsolidated Business Results, Implementation of Structural Reforms at Our Consolidated Subsidiary, Recognitionof Impairment Charges due to Withdrawal and Liquidation of Our U.S. Consolidated Subsidiary’s Business, andReduction in Executive Remuneration (IFRS)”:
https://www.wacoalholdings.jp/en/ir/topics/files/wacoalholdingsnews20231109_1en.pdf(ii)

Business Overview of Our Reportable Segments(Millions of Yen)
Previous Cumulative
Second Quarter(from April 1, 2022 toSeptember 30, 2022)
AmountTotal Revenue
Wacoal Business (Domestic)
Wacoal Business (Overseas)
Peach John Business
Other

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

a.

97,506
48,86535,086
6,023
7,532

Current Cumulative
Second Quarter(from April 1, 2023 to
September 30, 2023)

Distribution
Ratio (%)
100.0
50.1
36.0
6.2
7.7

Amount95,13047,27535,0285,502
7,325

Distribution
Ratio (%)
100.0
49.7
36.8
5.8
7.7

Increased/(Decreased) fromprevious cumulative
second quarter
Amount%(2,376)(1,590)
(58)
(521)
(207)

(2.4)
(3.3)
(0.2)
(8.7)
(2.7)

Previous Cumulative
Second Quarter(from April 1, 2022 toSeptember 30, 2022)

Current Cumulative
Second Quarter(from April 1, 2023 to
September 30, 2023)

Increased/(Decreased) fromprevious cumulative
second quarter

Amount% to Sales

Amount% to Sales

Amount

%

4.1
3.2
4.4
13.8
0.7

(3,384)
1,303(5,023)
(37)
373

2.8
5.1

(7,385)(267)(6,575)(867)+324(17.0)+661.2

4,001
1,570
1,552
830
49

Wacoal Business (Domestic)

Our sales performance during the current consolidated cumulative second quarter continued to be mixed withdifferent trends for each brand and sales channel. Amid the growing trend towards selective spending by ourcustomers, our high-priced brands “Yue” and “Salute” maintained strong sales, and our men’s innerwear products
designed for comfort achieved a growth in sales, receiving high marks from our customers. On the other hand,revenue from “Wacoal” and “Wing” brands declined as our aggressive sales promotion activities of our core products
contributed to an expansion of e-commerce sales, but failed to lead to an increase in the number of customers
purchasing at retail store channel such as department stores and mass retailers. In addition, although we achieved anincrease in revenue from our e-commerce sales, our sales promotion did not lead to an increase in the number ofcustomer visits, resulting in a significant shortfall in sales from our plan. On the other hand, sales from third-party-6-e-commerce websites exceeded our plan as a result of our continued efforts on strengthening cooperation with such
e-commerce website operators.
As a result of the above, revenue attributable to our “Wacoal Business (Domestic)” segment was 47.28
billion yen (a decrease of 3.3% as compared to such revenue for the corresponding period of the previous fiscal year).
Despite a decrease in labor costs associated with the implementation of the Flexible Retirement Program during theprevious fiscal year, the positive impact from such decrease was not enough to offset the negative impact of lower
revenue and a rise in cost of sales ratio, and as a result, operating profit was 1.30 billion yen (a decrease of 17.0% ascompared to such operating profit for the corresponding period of the previous fiscal year).
b.

Wacoal Business (Overseas)

Sales from Wacoal Europe Ltd., on a local currency basis, for the current consolidated second quarterdecreased as sales from our swimwear products were cut by half as compared to the corresponding period of theprevious fiscal year due to the impact of a cool summer temperature in the United Kingdom, as well as the suspensionof shipments due to a cybersecurity incident. We have already completed the recovery work from the unauthorizedaccess and have resumed order-taking and shipping operations from early October.
Sales from Wacoal International Corp. (U.S.) fell below the level of the corresponding period of the previous
fiscal year mainly due to a significant decrease in revenue from Intimates Online. Despite strong sales from our
e-commerce business due to the success of strengthened digital marketing efforts, Wacoal America, Inc.’s sales
decreased as a result of sluggish sales from third-party e-commerce websites due to the continued impact of ourclient’s restraint in procurement in response to declining consumer confidence. As we curbed investment in sales
promotions to improve profitability, the number of customers visits declined significantly at Intimates Online,
resulting in a decrease in sales from Intimates Online. As described above, we have determined that it will bedifficult to improve the business results of Intimates Online in the future, and have resolved to withdraw from the
LIVELY business and to liquidate Intimates Online.
Sales from Wacoal China Co., Ltd. increased due to the absence of the impact of the strict restrictions on
activities related to COVID-19 imposed during the corresponding period of the previous fiscal year. The level ofrecovery, however, fell significantly short of our expectations as the number of customers visits remained sluggish
after the lifting of the restrictions on activities. In addition, although sales from third-party e-commerce websites
remained at the same level as the corresponding period of the previous fiscal year, but fell significantly short of our
expectations due to a delay in product development in response to market trends.
As a result of the above-described factors, revenue attributable to our “Wacoal Business (Overseas)”segment on a Japanese yen basis were 35.03 billion yen (a decrease of 0.2% as compared to such revenue for thecorresponding period of the previous fiscal year). Although revenue from each operating entity decreased on a local
currency basis, the depreciation of the Japanese yen against major currencies contributed to the revenue level on parwith the corresponding period of the previous fiscal year. We recorded an operating loss of 5.02 billion yen (ascompared to 1.55 billion yen of operating income for the corresponding period of the previous fiscal year) due to theimpact of decreased revenue and the recording of impairment charge on goodwill related the business withdrawal andliquidation of Intimates Online at Wacoal International Corp. (U.S.).
c.

Peach John Business

During the current consolidated cumulative second quarter, sales fell significantly short of our expectations
despite our measures such as member-only offers to attract customers and our marketing efforts to stimulate demandthrough aggressive sales activities for our new products at both our directly managed stores and e-commerce website.
On the other hand, sales from third-party e-commerce websites were strong due to the positive impact of thetransactions started with new e-commerce website operators.
As a result of the above, revenue attributable to our “Peach John Business” segment were 5.50 billion yen (adecrease of 8.7% as compared to such revenue for the corresponding period of the previous fiscal year). We recorded
an operating loss of 0.04 billion yen (as compared to 0.83 billion yen of operating profit for the corresponding periodof the previous fiscal year) due to the impact of decreased revenue and increased expenses associated with the
e-commerce system upgrade, as well as the realization of a foreign exchange loss associated with the liquidation of a
subsidiary in China.

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d.

Other

During the current consolidated cumulative second quarter, sales from Lecien Corporation (“Lecien”)
decreased due to the weak sales of its private brand products sold by major apparel supply chain companies. On theother hand, sales from Nanasai Co., Ltd. increased due to progress of large-scale construction projects and positive
impact from new orders received. In addition, sales from Ai Co., Ltd. increased due to a recovery in travel-related
demand and other factors.
As a result of the above, revenue and operating profit attributable to our “Other” business segment were 7.33
billion yen (a decrease of 2.7% as compared to such revenue for the corresponding period of the previous fiscal year)
and 0.37 billion yen (an increase of 661.2% as compared to such operating profit for the corresponding period of theprevious fiscal year), respectively. While revenue decreased, we were able to increase profit due to the reversal of
expenses recorded in the corresponding period of the previous fiscal year in connection with the liquidation of a
subsidiary of Lecien.
(Reference) Revenue and Operating Profit/ (Loss) of Major Subsidiaries(Millions of Yen)

Revenue

Previous Cumulative
Second Quarter(from April 1, 2022 toSeptember 30, 2022)
AmountWacoal Corp.
Wacoal International Corp. (U.S)
Wacoal Europe Ltd.
Wacoal China Co., Ltd.
Peach John Co., Ltd.
Lecien Corporation
Nanasai Co., Ltd.

46,01815,537
10,069
4,796
6,023
1,848
3,248

Current Cumulative
Second Quarter(from April 1, 2023 to
September 30, 2023)

Distribution
Ratio (%)
47.2
15.9
10.3
4.9
6.2
1.9
3.3

Amount
44,56915,111
10,055
5,161
5,502
1,326
3,320

Distribution
Ratio (%)
46.9
15.9
10.6
5.4
5.8
1.4
3.5

Increased/(Decreased) fromprevious cumulative
second quarter
Amount%(1,449)
(426)
(14)
+365
(521)
(522)
+72

(3.1)
(2.7)
(0.1)
+7.6
(8.7)
(28.2)+2.2*Revenue from external customers only
(Millions of Yen)

Operating Profit/(Loss)

Wacoal Corp.
Wacoal International Corp. (U.S.)
Wacoal Europe Ltd.
Wacoal China Co., Ltd.
Peach John Co., Ltd.
Lecien Corporation
Nanasai Co., Ltd.

(2)Previous Cumulative
Second Quarter(from April 1, 2022 toSeptember 30, 2022)

Current Cumulative
Second Quarter(from April 1, 2023 to
September 30, 2023)

Increased/(Decreased) fromprevious cumulative
second quarter

Amount% to Sales

Amount% to Sales

Amount

%

4.3
3.8
4.1
13.8
0.6

1,400
(6,716)
800
(220)
(37)
89
(7)

3.1
8.0
6.7
-

(567)
(7,312)
+391
+436
(867)
+274
(27)

(28.8)
+95.6
-

1,967
596
409
(656)
830
(185)
20

Qualitative Information regarding Consolidated Financial Condition(i)

Assets, Liabilities and Total Shareholders’ Equity

Our total assets as of the end of the current consolidated second quarter were 287,948 million yen, an
increase of 2,289 million yen from the end of the previous fiscal year, mainly due to increases in cash and cash
equivalents, inventories and retirement benefit assets, despite a decrease in goodwill caused by impairment charges
on goodwill.
Our total liabilities were 72,038 million yen, a decrease of 139 million yen from the end of the previous fiscal
year, mainly due to decreases in trade and other payables, despite increases in borrowings and deferred income taxes.

-8-Equity attributable to owners of parent was 212,533 million yen, an increase of 2,336 million yen from theend of the previous fiscal year, mainly due to increases in exchange differences on translation of foreign operations
resulting from the depreciation of the Japanese yen.
As a result of the above, ratio of equity attributable to owners of parent as of the end of the current
consolidated second quarter was 73.8%, an increase of 0.2% from the end of the previous fiscal year.
(ii)

Cash Flows

Cash and cash equivalents as of the end of the current consolidated second quarter were 30,333 million yen,
an increase of 3,552 million yen from the end of the previous fiscal year.
(Cash Flow Provided by Operating Activities)
Cash flow provided by operating activities was 4,092 million yen, a decrease of 762 million yen as comparedto the corresponding period of the previous fiscal year, after adjustments for changes in assets and liabilities to ournet loss of 4,396 million yen plus adjustments for depreciation and amortization, and income tax expense.
(Cash Flow Provided by Investing Activities)
Cash flow provided by investing activities was 5,672 million yen, as compared to cash flow used in investing
activities in the amount of 1,117 million yen for the corresponding period of the previous fiscal year, due to proceedsfrom sale or amortization of other financial assets.
(Cash Flow Used in Financing Activities)
Cash flow used in financial activities was 8,051 million yen, a decrease of 4,461 million yen as compared tothe corresponding period of the previous fiscal year, due to repayments of lease obligations, payments for purchase oftreasury stock, and payments made for dividends.
(3)

Qualitative Information regarding Forecast of Consolidated Business Results
Based on the business results for the current consolidated cumulative second quarter, as well as the structuralreforms including the “withdrawal/integration of unprofitable brands”, “withdrawal of underperforming stores”,“disposal of inventory” and “solicitation for voluntary retirement” to be implemented pursuant to the revised
medium-term management plan, we have revised our forecast of consolidated business results for the fiscal year
ending March 31, 2024 since we announced such forecast on May 12, 2023. For details, please see the“Announcement Regarding Variances between the Forecast of Consolidated Business Results and Actual
Consolidated Business Results for the Six-Month Period ended September 30, 2023, Revisions to the Forecast ofConsolidated Business Results, Implementation of Structural Reforms at Our Consolidated Subsidiary, Recognitionof Impairment Charges due to Withdrawal and Liquidation of Our U.S. Consolidated Subsidiary’s Business, andReduction in Executive Remuneration (IFRS)” separately announced on November 9, 2023.

-9-

2.

Condensed Quarterly Consolidated Financial Statements and Accompanying Notes(1)

Condensed Quarterly Statement of Financial Position(Millions of Yen)
Accounts

Previous Consolidated
Fiscal Year
as of March 31, 2023

AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets:
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted for using equity method
Other financial assets
Retirement benefit assets
Deferred income taxes
Other non-current assets
Total non-current assets
Total assets- 10 -

Current Consolidated
Second Quarteras of September 30, 2023

26,781
20,215
1,804
53,7203,100
105,620

30,333
19,521
2,199
56,347
4,105
112,505

46,702
12,260
16,256
13,043
2,957
20,49950,195
13,9783,316
833

46,912
11,584
11,26812,6402,954
20,56550,592
15,5602,484
884

180,039
285,659

175,443
287,948

(Millions of Yen)
Accounts

Previous Consolidated
Fiscal Year
as of March 31, 2023

Liabilities and Equity
Liabilities
Current liabilities:
Borrowings
Lease liabilities
Trade and other payables
Other financial liabilities
Income taxes payable
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Retirement benefit liability
Deferred income taxes
Other non-current liabilities

Current Consolidated
Second Quarteras of September 30, 2023

5,000
4,661
17,535
1,172
1,683
13,791
43,842

7,172
4,483
14,926
1,109
1,164
15,112
43,966

3,084
7,670
2,470
13,886
1,225

1,925
7,179
2,194
15,5601,214

Total non-current liabilities

28,33528,072

Total liabilities

72,17772,03813,26029,029151,779
32,023(15,894)
210,197
3,285
213,482

13,26020,563
149,11440,349(10,753)
212,533
3,377
215,910285,659

287,948

EquityCommon stock
Additional paid-in capital
Retained earnings
Other components of equity
Treasury stock, at cost
Total equity attributable to owners of parent
Noncontrolling interests
Total equity
Total liabilities and equity- 11 -

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

Previous Consolidated
Cumulative Second Quarter(From April 1, 2022
to September 30, 2022)

Current Consolidated
Cumulative Second Quarter(From April 1, 2023
to September 30, 2023)%

Revenue
Cost of sales
Selling, general and administrative expenses
Other income
Other expenses
Operating (loss) profit
Finance income
Finance costs
Share of profit of investments accounted for using
equity method
Impairment charges of investments accounted forusing equity method(Loss) profit before tax
Income tax expense(Loss) profit(Loss) profit attributable to:
Owners of parent
Noncontrolling interests(Loss) profit(Loss) earnings per share:
Basic (loss) earnings per share (yen)Diluted (loss) earnings per share (yen)%97,506(41,341)(51,821)
1,036(1,379)
4,001
1,055
(552)

100.0
(42.4)(53.1)
1.0
(1.4)
4.1
1.1
(0.6)

95,130(41,446)(49,868)748(7,948)(3,384)
1,333
(152)

100.0
(43.6)(52.4)
0.8
(8.4)
(3.6)
1.4
(0.1)

1,377

1.4

753

0.8

－

－

(1,289)

(1.4)

5,881
(1,581)
4,300

6.0
(1.6)
4.4

(2,739)(1,657)(4,396)

(2.9)
(1.7)
(4.6)

4,218
82

4.3
0.1

(4,404)
8

(4.6)
0.0

4,300

4.4

(4,396)

(4.6)

69.19
68.89

- 12 -(76.09)(76.09)(Condensed Quarterly Consolidated Statement of Comprehensive Income)Previous Consolidated
Cumulative Second Quarter(From April 1, 2022
to September 30, 2022)(Millions of Yen)
Current Consolidated
Cumulative Second Quarter(From April 1, 2023
to September 30, 2023)

4,300(4,396)

(187)

5,606

(45)

－

32

(13)

(200)

5,593

7,060

6,378

280

618

7,340
7,140

6,996
12,589Comprehensive income

11,4408,193

Comprehensive income attributable to:
Owners of parent
Noncontrolling interests

11,258
182

7,982
211

11,4408,193

Accounts(Loss) profit
Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value throughother comprehensive income
Remeasurement of defined benefit plans
Share of other comprehensive income ofinvestments accounted for using equity method
Total
Items that may be reclassified subsequently to profit
or loss
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity method
Total
Total other comprehensive income

Comprehensive income- 13 -

(3)Condensed Quarterly Consolidated Statement of Changes in Equity
Previous Consolidated Cumulative Second Quarter (From April 1, 2022 to September 30, 2022)(Millions of Yen)
Equity attributable to owners of parent
Item
Share capital

Balance at April 1, 2022

13,260Capitalsurplus29,077

Other
componentsof equity

Treasury
stock

Total

158,940

27,571(10,858)

217,990

Cumulative effects of changes in accounting

228

policies
Balance at April 1, 2022 reflecting changes inaccounting policies

13,26029,077

159,168

ProfitOther comprehensive income

27,571(10,858)

4,218－

Cancellation of treasury stock

4,218

82

4,300

7,040

100

7,140

－

11,258182

11,440(3,335)(3,335)(3,335)

2,863

－

－

112

35

35

(77)

Dividends(1,844)

Transfer from other components of equity toretained earnings(1,844)

242

(242)

228
221,096(2,863)

Share-based payment transactions

220,868

2,878

7,040

Repurchase of treasury stock

Total equity

218,218

7,040
－

2,878

228

4,218

Total comprehensive income

Noncontrollinginterests

Retainedearnings(95)－(1,939)－Total transactions with owners

－

(77)

(4,465)

(242)

(360)

(5,144)(95)(5,239)Balance at September 30, 2022

13,26029,000158,92134,369(11,218)

224,332

2,965

227,297

Current Consolidated Cumulative Second Quarter (From April 1, 2023 to September 30, 2023)(Millions of Yen)
Equity attributable to owners of parent
Item
Share capital

Balance at April 1, 2023

13,260Treasury
stock

Total

151,779

32,023(15,894)

210,197

3,285

213,482(4,404)8(4,396)

12,386

203

12,589

－

7,982

211

8,193

(3,483)(3,483)(3,483)(8,572)

8,572

－

－

8

52

60

60

29,029(4,404)

Other comprehensive income

12,386－－(4,404)

12,386

Repurchase of treasury stock
Cancellation of treasury stock
Share-based payment transactions
Dividends(2,321)

Changes in ownership interest in subsidiaries

Total equity

Other
componentsof equity(Loss) profit

Total comprehensive income

Noncontrollinginterests

Retainedearnings

Capitalsurplus98

Transfer from other components of equity toretained earnings

4,060(4,060)(2,321)(99)(2,420)

98

(20)

78

－

－

Total transactions with owners－(8,466)

1,739(4,060)5,141(5,646)(119)(5,765)

Balance at September 30, 2023

13,26020,563

149,11440,349(10,753)

212,533

3,377

215,910- 14 -

(4)Condensed Quarterly Consolidated Statement of Cash Flows

Accounts

Previous Consolidated
Cumulative Second Quarter(From April 1, 2022
to September 30, 2022)(Millions of Yen)
Current Consolidated
Cumulative Second Quarter(From April 1, 2023
to September 30, 2023)

4,300
5,018
－
(1,055)552(4,396)
5,917
6,392(1,333)152(1,377)

(753)

－

1,289

1,581
137
553
(4,477)(568)(1,850)
(74)
2,771
(958)
4,553
38
1,218
(106)
(849)
4,854

1,657
79
1,618
(315)
(715)
(3,192)(1,872)448(2,328)
2,648
119
1,330
(138)
133
4,092

293
(84)
(1,447)243(1,051)
(33)

701
(908)
(1,112)
33
(837)
(77)

986

7,824

(24)

48

(1,117)

5,672(4,896)668

1,340(2,975)(3,335)(1,844)
(95)
(707)

－
(2,886)(3,483)(2,321)
(99)
－

－

78

－

(8)

(12,512)(8,051)

1,290

1,839

(7,485)

3,552

Operating activities(Loss) profit
Depreciation and amortization
Impairment charges
Finance income
Finance costs
Share of profit of investments accounted for using
equity method
Impairment charges of investments accounted forusing equity method
Income tax expense
Loss on sale of property, plant and equipment-net
Decrease in trade and other receivables
Increase in inventories
Increase in other assets
Decrease in trade and other payables
Decrease in retirement benefit asset or liability
Increase in other liabilities
Other
SubtotalInterest received
Dividends received
Interest paid
Income taxes received (paid)
Net cash provided by operating activities
Investing activities
Proceeds from withdrawal of time deposits
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of other financial assets
Proceeds from sale or amortization of other financial
assetsOther
Net cash provided by (used in) investing
activities
Financing activities
Net increase (decrease) in short-term bank loans withoriginal maturities of three months or lessProceeds from long-term borrowings
Repayments of lease obligations
Payments for purchase of treasury stock
Dividends paid to owners of parent
Dividends paid to noncontrolling interests
Contingent consideration payment
Proceeds from sale of interests in subsidiaries tononcontrolling interests
Payments for acquisition of interests in subsidiaries tononcontrolling interests
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents- 15 -Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

37,48530,000- 16 -

26,78130,333(5)Notes to Condensed Quarterly Consolidated Financial Statements(Notes on Going Concern)
Not applicable.
(Changes in Accounting Policies)
Our group has adopted IAS 12 Income Taxes (as amended May 2021) effective from the consolidated cumulative
first quarter.
IFRS

Summary of Issuance and/or Amendments

IAS 12 Income Taxes (as amended May 2021)

To clarify the accounting treatment of deferred taxes on leases
and decommissioning obligations

The adoption of IAS 12 clarifies the accounting treatment of transactions that give rise to an equal amount of taxable anddeductible temporary differences at the time of initial recognition such as leases and decommissioning obligations, andresults in the recognition of deferred tax liabilities and deferred tax assets for those taxable and deductible temporary
differences in the consolidated statement of financial position, respectively.
The consolidated financial statements for the previous fiscal year have been retrospectively adjusted as a result of the
adoption of IAS 12. Due to such adjustments, deferred tax assets increased by 363 million yen, retained earnings increased
by 361 million yen, and other components of equity increased by 2 million yen for the previous fiscal year in the condensed
quarterly statement of financial position. In addition, income tax expense decreased by 17 million yen and profit increasedby the same amount for the previous consolidated cumulative second quarter in the condensed quarterly consolidated
statement of profit or loss.
Reflecting the cumulative effects of the adoption of IAS 12, in the condensed quarterly consolidated statement of changes
in equity, retained earnings’ balance at April 1, 2022 for the previous consolidated cumulative second quarter increased by
228 million yen.

- 17 -

(Segment Information)(i)

Reportable Segment Information

Previous Consolidated Cumulative Second Quarter (From April 1, 2022 to September 30, 2022)(Millions of Yen)
Reportable Segment
Other(Note) 1

Adjustments(Note) 3

Consolidated

89,974

7,532－

97,506

146

8,094

1,983

(10,077)－

42,505

6,169

98,068

9,515(10,077)

97,506

1,552

830

3,952

49

－

4,001

WacoalBusiness(Domestic)

WacoalBusiness(Overseas)

Peach John
Business

48,86535,086

6,023

529

7,419

49,394
1,570

Total

Revenue
External customers
Intersegment
Total
Segment profit (Note) 2

Current Consolidated Cumulative Second Quarter (From April 1, 2023 to September 30, 2023)(Millions of Yen)
Reportable Segment
Other(Note) 1

Adjustments(Note) 3

Consolidated

87,805

7,325－

95,130

93

7,396

2,546

(9,942)－

5,595

95,201

9,871(9,942)

95,130WacoalBusiness(Domestic)

WacoalBusiness(Overseas)

Peach John
Business

47,27535,028

5,502

332

6,971

47,607

41,999

Total

Revenue
External customers
Intersegment
Total

Segment profit (loss)－
1,303(5,023)(37)(3,757)373(3,384)(Note) 2(Note) 1. The “Other” category includes Lecien business, Nanasai business, and other business segments which are not included in theoperating segment.
2. The sum of the segment profit (loss) agrees to the operating profit (loss) on the condensed quarterly consolidated statement of
profit or loss. For a reconciliation from operating (loss) profit to (loss) profit before tax, please see the condensed quarterly
consolidated statement of profit or loss.
3. The Company accounts for intersegment sales and transfers at cost plus an interest.

(ii)

Segment Information by Region
Revenue – external customers(Millions of Yen)
Previous Consolidated Cumulative Second Quarter(From April 1, 2022 to September 30, 2022)

Current Consolidated Cumulative Second Quarter(From April 1, 2023 to September 30, 2023)

Japan

61,79759,562

Asia and Oceania

10,973

10,976

Americas and Europe

24,736

24,592

Total

97,506

95,130(Note)

1.
2.

Countries or areas are classified according to locations of consolidated companies.
Of “Americas and Europe” category, revenue in the United States for the previous consolidated cumulative second quarter andcurrent consolidated cumulative second quarter were 18,199 million yen and 17,267 million yen, respectively.

- 18 -