This is an Appendix of the medium-term
management plan (revised) disclosed on
November 9, 2023. It describes the initiatives of
Wacoal and its major overseas subsidiaries.

Revised Medium-Term Management Plan
FY2024 to FY2026
Appendix

November 20, 2023
Wacoal Holdings Corp.
1

Good morning, everyone. I am Kawanishi of Wacoal Corporation. I will now explain
Wacoal's initiatives in the revised medium-term management plan.

Targets of the Revised Medium-Term
Management Plan

Reiteration : Revised Medium-Term Management Plan
FY2024 to FY2026 Document P5 (disclosed 11/9)

Opportunities
⚫
⚫
⚫
⚫

Risks
⚫

Diversifying the need to "be yourself"
Increasing the need for health and comfort
Social inculcation of sustainability awareness
Developing markets with significant growthpotential⚫
⚫
⚫

Increasing procurement costs due to changes in theexternal environment
Declining domestic demand due to population decline
Lack of competitiveness due to slow innovation
Declining corporate attractiveness and a serious
shortage of staff

Wacoal Group's strengths
Personalized body andsoul database1

Research/knowledge ofvarious body types / life
stagesBusiness model reforms to improve profitability⚫
⚫

2

Reviewing supply chain management
Cost structure reform ● Dealing with unprofitable businesses

Improvingprofitability andcapital efficiency

Growth strategy to achieve VISION 2030⚫
⚫

Growth investments
Reviewing brand strategies ● Focusing on growth markets
Human resource development and organizational development and stakeholder
returns
to enhance corporate value

2

Wacoal Corp.'s Initiatives

3

Manufacturing
technology for productsthat suit each customer

3

Organizational ability to meet
individual needs and embody
services

Introducing ROIC management⚫
⚫

4

Monitoring profitability and strategy effectivenessBusiness portfolio management

Promoting asset reduction⚫
⚫
⚫

Reducing inventories
Reducing strategic shareholdings
Streamlining real estate holdings

Our Goals for VISION2030■ Reviews (Wacoal in the past)✓ The ability to execute on the proposed plan is poor, and the improvement process based on reflection of failure
is not working✓ As customer needs change, conventional advertising, product planning, production systems, and business
management functions are unable to respond to market changes, causing a decrease in profitability andexcessive inventories✓ In particular, the lead time (LT) from product planning, development, production, and delivery takes more than
one year, and improvement is urgently needed■ Wacoal's future value

Empowering you to be yourself*
Wacoal aims to grow and contribute to society by supporting “your own beauty, comfort, and health"of each customer tailored to diversifying customer needs■ Medium-term management plan (revised)

Products and services thatempower customers to bethemselves
Products andservices basedon the results of
our Company's
research

Products andservices thatmeet diverse
valuesAfter implementing cost structure reforms, we will grow again by strengthening brand power,
customer loyalty, and human resources, and building a supply chain management that can respondquickly to customer needs. We will implement ROIC management to strengthen our business
management functions and strengthen the PDCA process for each business
4

Empowerment: Unleashing, supporting, and empowering people to achieve their full potential

See page four. First, I would like to explain Wacoal's vision for VISION 2030 and the roleof medium-term management plan revision.
Domestic sales had been on a gradual decline since 2000, but the mass closures andformat changes of regional department stores and mass retailers in 2015, theconsumption tax hike in 2019, and the corona infection in 2020 triggered a further decline
in sales and worsened profitability. In addition, even as the pandemic has subsided andconsumption has begun to recover, the Company's sales have remained sluggish.
Of course, we did not do nothing during this time. Unfortunately, we have not been able
to achieve results despite the various efforts we have made to recover our businessperformance. We recognize that this is an undeniable fact.
To this end, I have been working with internal and external members of Wacoal since myappointment in April to inspect the company. In the course of this process, we recognizethat the preconditions for each function, such as manufacturing and sales, which we used
to consider to be our strengths, have changed and are no longer applicable to the current
market and customers.
In particular, we understand that our supply chain management has not been able torespond to the diversification of customer needs and the shortening of trends, resulting in
weak sales and excessive inventories. In addition, we confirmed that our clients' inventory
control policies are not sufficient to replenish their stocks of hot-selling products and topromote the development of new products.
As a result of the above, my conclusion in the medium-term revision is that we need tosquat and aim for growth again. First, structural reforms will be implemented to optimize

the cost structure. We will also aim for growth by strengthening our brand power,
customer loyalty, and human resources. In addition, in order to evolve into a corporate
entity that can respond to the diversifying values of our customers, we have defined thevalue we will provide as empowering the individuality of each and every one of ourcustomers.
We hope to achieve both Wacoal's growth and contribution to society by supporting eachcustomer's own personal beauty, comfort, and health, in line with the diversification ofcustomer needs, rather than Wacoal's idea of beauty.

The Future Wacoal
In order to grow and contribute to society by providing products and services that meet diversifying customer needs,
we will implement thorough corporate transformation through the medium-term management plan (revised)
The Past Wacoal✓✓

Providing value based on the results of our Company's
research
Uniform marketing for all customers✓✓

Over-reliance on our Company's strengths, the "product."
Lack of clear brand marketing strategies✓

Customer directory management through in-store sales
associates (BA)
Completing the integration of the customer data
infrastructure and starting to use the data

Provided value

Brand strategies

Customerstrategies✓✓

Supply chain
management

Cost structure

Decision making

Due to the lead time (LT) from product planning todelivery, which takes more than one year to productdevelopment, a gap between demand and production
planning tends to occur✓

High cost structure✓✓✓

Various coordination tasks hinder prompt decision-making
The responsibility for management strategy is not clear
Partial optimization (lack of progress that requires
coordination)

The Future Wacoal➢

In addition to providing value based on the results of our research,
we will provide products and services that empower each customer’s
individuality based on the values of diverse customers➢

Through the brand management thoroughly from "customer's point ofview," we will cultivate attractive brands with clear value
Making the innerwear market itself attractive➢

Medium-term
management
plan (revised)➢➢

Increasing loyalty through the use of customer data
Building deep, broad, and long-term relationships with each andevery customer through personalized customer experiences andimproving LTV➢

Building demand-linked supply chain management that can flexibly
respond to changes in the market and customers➢

Achieving an optimal cost structure thorough rigorous selection and
focus

➢
➢
➢

Accelerating decision making
Clarifying responsibilities for business profit
Increasing productivity throughout the Company by achieving overall
optimization5

See page five. The following is a description of what we hope to achieve through thiscorporate transformation.
In summary, it is about becoming a company, organization, and employees that can think
and act in a customer-centric manner.
We will develop and provide customer-driven products and services, implement customerdriven brand management and communication policies, improve and reform our supply
chain management to respond flexibly to changes in customers and markets, and evolve
into an organization capable of rapid decision-making and with high business efficiency.
We will maximize the value we provide to our customers and allocate the cash we receivein return to investments in human resources and growth, which will lead to our next stageof growth.
Fortunately, we still have a large customer base and the manufacturing and sales
capabilities to meet your needs. We believe that by updating these capabilities from acustomer-driven perspective, we can re-grow.
In addition, our employees have diverse values and personalities, but we recognize that
we are not making full use of this diversity. We recognize that one of our challenges is thatthe traditional silo management of the organization has allowed the idea of partial
optimization to permeate the company, and that decisions or actions for company-wide
optimization are weak. By supporting the growth of each employee, we hope to turn thisdiversity into a driving force for growth.
We intend to share our progress toward the state indicated in “Wacoal from now on” with
our investors and employees.

Key Initiatives in the Medium-Term Management Plan (Revised)
After implementing cost structure reforms, we will strengthen brand power, customer loyalty, and human resources toreturn to growth
In order to become a new Wacoal that can respond quickly to changes in customers and markets, we will link our
supply chain management to demand from the customer's point of view using digital technologies■ Initiatives in Wacoal's medium-term management plan (revised)

Business model reform

Supply chain
management reform

Optimizing cost structure through rigorous
selection and focus
Forming supply chain management that canquickly respond to changes

Cost structure reform

Customer strategies

✓

✓

✓
✓

Implementing a radical cost structure reform in order to restore Wacoal's basic profitability
We will improve the sales profit ratio by 3 pts to 4 pts and SG&A expenses by 4 pts to 5
pts by FY2026✓

Building deep, broad, and long-term relationships with each and every customer throughpersonalized customer experiences and improving LTV. Designing every contact pointwith customers to make them attractive
Maximizing the value of the customer experience by leveraging customer data andimproving the customer journey✓

Executing growth strategies✓

Strengthening brand development andcustomer loyalty by maximizing the value
provided by leveraging our strengths anddigital technologies

Brand strategies✓✓

Human resource
strategy

Implementing supply chain management (SCM) reform to respond swiftly to changes incustomer needs and the market environment
Forming SCM linked to demand from the customer's point of view using digitaltechnologies✓

With thorough brand management from the customer's point of view, we will develop an
attractive brand with clear values and deepen the connection between the brand andcustomers
Making the innerwear market more attractive
To improve profitability as soon as possible, we will implement human resource
development, organizational development, and corporate culture reform for medium-to
long-term growth along with managing personnel planning
Leveraging the strengths and supporting growth of each sales associate (BA)6

Page six. This will be a matter of major initiatives in the revised medium-term plan. As I
explained earlier, the basic policy of this medium-term plan revision is to squat once andaim for renewed growth.
During the new medium-term management plan period, we will work on cost structurereforms and supply chain management reforms as part of business model reforms totransform ourselves into a structure capable of securing high profitability in an increasingly
severe external environment.
In addition to business model reforms, we will also implement a growth strategy that will
enable us to achieve our next level of growth. Again, the driving forces behind the growthstrategy will be brand strength, customer loyalty, and human resources. Throughstrengthening our customer strategy, brand strategy, and human resource strategy, we
will evolve into a new Wacoal that can respond quickly to changes in customers andmarkets.
The details of each item will be explained on the following pages.

Business Model Reform (1)Supply Chain Management Reform

Reiteration : Revised Medium-Term Management Plan
FY2024 to FY2026 Document P6 (disclosed 11/9)

Implementing SCM reforms at Wacoal(Japan) to respond quickly to changes in customer needs and the market environment
With the use of digital technology to build SCM linked to demand from the customer's point of view, thoroughly selecting and focusing to* SCM: supply chain management
optimize the cost structure■ Process for establishing supply chain management linked to demand

1

Optimizing in-store
product lineup

2

Demand-linked
production

3

Shortening planning anddevelopment lead time(LT)

⚫ By reviewing the uniform product mix and delivery style of new products, we establish amodel that reliably delivers top-selling products to stores (including e-commerce)✓ Operational establishment within the
period of the medium-term
management plan

⚫ Changing the production system to match the demand situation at the store,
optimizing/reducing excess inventories✓ Trial from standard products andgradually become operational within
the medium-term management plan
period.

⚫ Shortening development and delivery LT by utilizing existing patterns and reviewing
business processes such as planning and development meetings⚫ Accelerating the PDCA cycle and the launch of products that meet customer needs✓ By the FY2025, we will graduallychange the business process and try toshorten additional plans

2 Demand-linked production
Suppressing excess inventories byreplenishing production in line with store
sales(2) Demandlinked planning

1 Optimizing the in-store
product lineup
Reviewing the product lineup to matchthe sales performance of the store, andoptimizing in-store inventories

trends for each product7

PlantsOrdering in line with the season(1) Shortening
current-stateprocesses

In-store/EC
Current status: A uniform product lineup
and uniform delivery of new products thatare not fully suited to the sales situation at
the store and customer characteristics

Delivery to meetin-store demands

Shortening

Development
Shortening

Additional
response thatmeets needs

Ordering in line with sales

Head office /distribution
warehouse

3 Shortening planning and development lead time (LT)

Shortening

Material ordering to sewing

Development to delivery LT: 6 months

Development
Material ordering to sewing

Reviewing
work
processes

Development to delivery LT:14 months→11 months

Delivery in line with the production plan

Page seven. The first point of business model reform is the supply chain management
reform.
We believe that supply chain management reform is a growth strategy not only for the
purpose of optimizing our cost structure, but also because it directly leads to profit growththrough the smooth development and deployment of products that meet customer needs,
accurate additional production of hot-selling products, and inventory control.
Through the use of digital technology, we hope to enhance our ability to respond to
customer needs by building a customer-driven, demand-driven supply chain management
system.
The efforts are envisioned in three phases, first to optimize the product mix in stores, thento shift to a demand-linked production system, and finally to shorten production lead time.
We have already begun to work on each of these initiatives and hope to begin operatingthem within the timeframes described.

Reference: Progress of Supply Chain Management Reform
A demonstration experiment was conducted at six mass retailers to optimize the in-store product mix✓ Maintaining the inventory status of high-selling products at stores and promoting product appeal⇒Sales at participating stores (self-service stores and staffed sales staff stores) have been firm compared to the overall dealers■ Initiatives for the current fiscal year (December 2023 to March 2024)

2. Building a foundation that produces
continuous results≒Shortening replenishment LT

1. Maximizing sales during the period≒Reducing opportunity loss
(improving satisfaction rate and inventory turnover rate)✓✓

Based on the results of inspections, appropriate in-store inventory
operations will be established for demonstration project customers,
Starting demonstration experiments with other dealers(optimizing product mix and shortening replenishment LT)✓✓✓

Reviewing the product mix to focus on stores’ top-selling products
Shortening replenishment LT to stores (demonstration experiment ofshortening LT production)
Shortening product-planning LT and responding to additional production(from 25SS)■ Initiatives for the next fiscal year (April 2024 to March 2025)

3. Expanding the scope of initiatives for each theme≒Increasing results of initiatives (improving satisfaction rate, inventory turnover rate, andsales increasing)
8

Page eight. Here you will find a description of our pilot program to optimize in-store
merchandise at six mass merchandisers.
The efforts were really quite simple, and simply involved keeping each store in a state
where inventory replenishment and development appeals for hot-selling products were
properly addressed. This may sound obvious, but we were in a state of not being able todo this obvious thing.
As for the results of the demonstration experiment, during the one-month test operation,
the sales averages of the six stores exceeded those of the other stores, a result that leaves
us feeling confident.
Based on the results of this experiment, we would like to start operating the system inother stores of the clients who cooperated in the demonstration experiment, as well as inother clients, in this fiscal year. We will strive to reduce lost sales opportunities by quickly
expanding the scope of target stores.
At the same time, we will conduct demonstrative experiments to shorten product planningand production lead time and build a foundation for continuous results. In the next fiscal
year and beyond, we plan to expand the scope of our efforts in this area to improve thefulfillment rate, inventory turnover ratio, and sales activities.

Business Model Reform (2)Cost Structure Reform

Reiteration : Revised Medium-Term Management Plan
FY2024 to FY2026 Document P7 (disclosed 11/9)

In order to restore Wacoal(Japan)'s basic profitability, a radical cost structure reform will be implemented. Setting reduction target to ¥ 7bn.
We plan to improve the sales profit ratio by 3 pts to 4 pts and SG&A expenses by 4 pts to 5 pts by FY2026 (compared to FY2023).

Reducing production costs⚫ Improving inspection process efficiency⚫ Reducing man-hours by aggregatingproduct numbers, etc.

● Will be completed by FY2025¥ 0.6
billionReducing production andmaterial costs⚫ Reviewing the production system⚫ Aggregating materials and master colors● Will be completed by FY2025¥ 0.4
billionImproving the profit andloss of stores⚫ Reviewing the terms and conditions ofbusiness with business partners⚫ Withdrawing stores that are in the red (upto 32 stores)⚫ Optimizing personnel in order to improve
productivity⚫ Considering the withdrawal fromstores that are in the red andthose that are not expected torevise transaction terms during
FY2024¥ 0.9
billionOffering voluntary
retirement⚫ Optimizing personnel in order to improve
productivity● Will be completed by FY2024¥ 0.9
billionOptimizing other sales
promotion expenses⚫ Optimizing expenses for IT⚫ Optimizing advertising/promotion costs● Will be completed by FY2025¥ 1.6
billionReducing distribution
costs, etc.

⚫ Improving distribution business profitability● Will be completed by FY2025¥ 0.6
billionApprox.
¥ 7.0 billion

Wacoal: Figures for the FY2026 business plan
Based on the effects of cost structure reforms and theresults of growth strategies, the revenue levels of ¥ 94 billion
and business profit of ¥ 6 billion(6.4%) have been set as
hurdle rates in the revised medium-term management plan

Improving sales
profitSales profit ratio
56%⇒59%(Approx. 3pt
improvement)

Cost improvement
SG&A expenses ratio
57%⇒53%(Approx. 4pt
improvement)

Sales revenue

¥6

¥ 1.9
billionbillion⚫ Aggregating production lines will
start at 24AW and be completed
during FY2025

SG&A expenses

Brand focus and selection

Cost of sales

Effectsbillion

Implementation timing¥ 94.0Specific activities⚫ Reducing losses on returns anddiscounting by aggregating productnumbers, etc.
(Reducing production lines by approx. 40%
and the number of product number by morethan 10%)⚫ Reviewing sales price setting

FY2026

Implemented items

6.4%

Business profit

9

See page nine. The second point of business model reform will be cost structure reform.
Based on the current price increase trends and market trends, we will carefully look at theoutlook for future sales and earnings and implement drastic structural reforms to change
our business structure to ensure a certain level of profit even within that structure.
The reduction target by the fiscal year ending March 31, 2026, is set at about JPY7 billion.
The plan is to improve the profit margin on sales by 3 percentage points to 4 percentage
points and SG&A expenses by 4 percentage points to 5 percentage points compared to
the fiscal year ended March 2023.
The breakdown of the JPY7 billion is as shown in the table below, but let me explain themost effective reductions. Regarding brand selection and concentration, we expect toreduce 40% of the component lines and over 10% of the number of product numbers
under Wacoal by the fiscal year ending March 2025, resulting in a cost reduction of JPY1.9
billion. In addition, the number of product numbers will be reduced by approximately 30%
compared to the spring/summer season of 2020.
In addition, we believe that lower manufacturing costs, lower production and material
costs, and improved store profit/loss will be the effects that will emerge as a result of the
supply chain review, and we expect a total effect of JPY2 billion.
In particular, to improve store profitability, we plan to withdraw from a total of 32 stores-- 22 directly managed stores and 10 department stores -- in the current fiscal year andare currently in the process of negotiating terms and conditions for approximately 150
other stores.

Summary of the Growth Strategies
By leveraging Wacoal’s strengths and digital capabilities to continue providing products and services that empower
customers’ abilities to be themselves, we will develop beloved brands, build deep, broad, and long-term
relationships with customers, and achieve growth as the Wacoal
Implementing growth strategies
using Wacoal's strengths and digitaltechnologies
Strengthening human capital

Channel measures corresponding tocharacteristics, potential, customer
base, and market segments

Customerstrategies

✓

Brand
strategies✓

Human
resource
strategy

Building deep, broad, and long-term
relationships with each and every
customer through personalized
customer experiences and improving
LTV
With thorough brand managementfrom the customer's point of view, we
will develop an attractive brand withclear values
In parallel with personnel planning
management to improve profitability assoon as possible, we will implementhuman resource development,
organizational development, andcorporate culture reform for medium-to
long-term growth

Expected effects

Channel measures

Growth strategies✓

Providing an optimal customer
experience
Improving LTV✓

Channelportfolio✓✓✓✓

Product
structure✓✓

Customerexperience✓

Opening a replacement store totenants that attract many customers
Expanding self-managed sales floors
Acquiring new customers bystrengthening other companies' EC
Developing a new store format that
addresses customer expectations

✓
✓
✓
✓

Gaining and keeping loyal customers
Increasing number and amount of purchases
per year
Increasing return purchases and newmembers
Expanding the customer pyramid
Loyalcustomers

Product structure according tocharacteristics of market segments
and channels
Product expansion according tostores' top selling products
Seamless customer experience
between Wacoal’s own EC andphysical stores
Personalized recommendations
based on customer data

Existing
customers
New customers
Free customers

10

Page 10. I will now explain our growth strategy.
As outlined in the chart, there is no change in our ultimate goal. We intend to achieve
renewed growth by improving lifetime value through the provision of optimal customer
experience.
In the current medium-term business plan, we have reviewed the processes that lead tothis point, and we have set the cultivation of loyal customers through the use of customer
data, the strengthening of brand management from the customer's perspective, andhuman resource strategies as the pillars of our growth strategy.
Rather than developing these growth strategies in a uniform manner, we intend to respondflexibly according to channel characteristics, potential, customer base, and other factors.
As a result, we believe that this will lead to expansion of self-managed sales floors,
replacement store openings for tenants with high customer attraction, and strengtheningof other companies’ e-commerce to meet new customers.
The composition ratio of self-managed sales space and EC ratio that we are aiming for in
the mid- to long-term will be explained later.
We will explain the details of our growth strategy from the next page.

Growth Strategies (1) Customer Strategies
In order to build deep, broad, and long-term relationships with customers, we will thoroughly utilize
digital technologies to provide the best customer experience for each person■ Use of digital technologies

DX

1.

Rebuilding the value chain from the customer's point of view. Fully leveraging customer data, customer feedback, andsales associate (BA) insights

2.

Creating consistent and highly satisfying customer experiences in physical stores and online through 3D measurement
services (SCANBE) and apps (CARNET)

3.

Identifying the development path of loyal customers and continuously monitoring management metrics to maximize LTV■ Illustration of how customer data can be used

■ Physical stores✓ Consulting services✓ Handling reservations
and orders■ Stores implementing 3D
measurement service✓ Self-discovery

Customers
Data

Customers
Apps■EC✓ Analyzing customer/BA
feedback and using themto create sales floors✓ Use of accumulated body
data for manufacturing

Research
Planning
Delivering a consistentcustomer experiencebased on customer data

✓ Personalizedrecommendations basedon customer data
✓ Product reviews from a
BA's viewpoint

11

See page 11.
The first growth strategy will be the customer strategy. In order to build deep, broad, andlong-lasting relationships with our customers, we will provide optimal customer
experiences for each of them, and we believe that the key to this is the use of digitaltechnology. At medium term plan revision, we intend to evolve our connection with ourcustomers through digital transformation.
The first point is to use digital technology to analyze not only customer data, but also
customer feedback, which is one of our strengths, and the customer service knowledge of
our sales staff, and to apply this to the customer experience.
The second point is the linkage between real and online. In addition to the consulting
services of our sales staff, which is one of our strengths, we intend to utilize 3D
measurement services and applications to provide a consistent and satisfying customer
experience both in real life and online.
We have also started product reviews, in which sales representatives introduce products
online, and these have been very successful, so the customer experience is alreadyseamless both in real life and online.
Third, customer data will be used to develop loyal customers to maximize lifetime value.
We will build relationships with customers by identifying paths to nurture loyal customers
and continuously monitoring management indicators.

Growth Strategies (2) Brand Strategies

Reiteration : Revised Medium-Term Management Plan
FY2024 to FY2026 Document P11 (disclosed 11/9)

With thorough brand management from the "customer's point of view," we will develop an attractive brand with clear values■ Developing products and services tailored to each segment to meet the diverse values of customers and empower them to be themselves.

Brand portfolio setting
tailored to market segments

1

Innerwear

2

Other thaninnerwear⚫ By clarifying the value we provide to customers, expand thecustomer base targeting young and affordable customers, andproviding products that meet diverse customer needs, we willdevelop brands with an eye on long-term connections withcustomers and expand LTV

Starting from the 24 AW
season productRebranding Wacoal⚫ From a brand that creates "beauty" to a brand that creates
encounters with a "new you and new possibilities." Rebranding ourcore brand, Wacoal, to improve its value

FY2028 ¥ 45 billion
125% compared to FY2023(CAGR 4.6%)

Expanding our "beauty,
comfort, and health"business⚫ Expanding the beauty, comfort, and health business by utilizing ourknowledge cultivated in the innerwear business⚫ Personalized services using 3D measurement systems and data
⚫ Strengthening sports business such as CW-X

FY2031 ¥ 20 billion■ About market segments
Analyzing the market attractiveness of each segment based on the "compound annual growth rate" x "bra market size" for FY2018 to FY2022, setting market
segments and developing brand strategies in line with the strengthened segments (market attractiveness of each market segment and other information notdisclosed)
15 to 19 yrs old

20 to 29 yrs old

Age group
30 to 39 yrs old
40 to 49 yrs oldHigh premium

50 to 59 yrs old

Age 60 and above

High premium

Price range

Premium
BetterYoungpeopleRebranded Wacoal

Seniors

Moderate
Affordable

Affordable

Cost saving

12

See page 12. Brand strategy will be explained.
For brand strategy, we have organized market segments from a unique perspective andset up brand portfolios according to the strengthened segments. Based on this portfolio,
we will execute brand management.
Regarding the market segments, we have analyzed the CAGR of the bra market from 2018
to 2022 and the size of the bra market to identify the market attractiveness. The brandstrategy is then studied according to the strengthened segments. Details of market
segments are not disclosed.
In addition, for the central segment, we hope to strengthen our response with the Wacoal
rebrand. As I mentioned earlier, Wacoal has been a brand that creates beauty, but after
the renewal, we intend to evolve into a brand that creates encounters with new selvesand new possibilities, thereby enhancing the value we provide to customers.
In addition, to expand the customer base, we will strengthen the development in theaffordable segment and the younger segment, and also focus on the high premium
segment where market growth is expected.
In areas other than innerwear, we aim to expand our business in the areas of beauty,
comfort, and health, such as body data obtained from 3D measurement services,personalized services utilizing the mind-body research of our research institute, andstrengthening our sports business such as CW-X.

Quantitative Targets for Wacoal■ Planned figures(* including internal sales)

Initial goal
FY2025+1 year

Revised target

No change

FY2026

FY2031

Sales¥110 billion¥94 billion¥130 billion

Business profit¥7.5 billion¥ 6 billion¥11 billion

Business profit
margin

6.8%

6.4%

More than 8.5%

■ VISION2030 (goals to aim for in FY2031)
Market segment

Innerwear

Wacoal brandHigh premium

EC ratio of innerwear(Difference between
FY2023)Young people

Non-innerwear

Seniors

Semi-order

Personalize¥110 billion

Sales targets for FY2031
CAGR(FY2023 to FY 2031)

Affordable

＋2.7％

＋9.8％

EC ratio

Physicalstores40%(+20pt)60%(-20pt)＋3.8％＋13.0％

Self-managing sales of
innerwear(Difference between FY2023)*

Conditioning¥20 billion＋18.9％＋25.1％

Self-managing

WholesaleMore than 60%(+10pt)40% or less(-10pt)ー＋21.5％* Sales at sales floors where customer data canbe acquired and price control is possible(e.g., directly managed stores, in-house EC
stores, department stores) in order tomaximize LTV

13Page 13. Finally, I will explain the quantitative targets of Wacoal Corp.
As explained earlier, in light of the external environment, we will push back the target
achievement year by one year, from the fiscal year ending March 31, 2025, to the fiscal
year ending March 31, 2026.
In addition, we have revised downward our sales target to JPY94 billion, taking into
account the impact of the selection and concentration of brands in line with structuralreforms and the withdrawal of loss-making stores, as well as the fact that a certain amountof time is needed before the results of our growth strategy are realized.
Although business profit will also be revised downward, we hope that the effects of cost
structure reforms will promote a change in our business structure to ensure a certain levelof profitability even in the face of declining revenue, and lead to growth in the next
medium-term management plan and beyond.
On the other hand, we will not change the targets set forth in VISION 2030. We are aiming
for total sales and earnings of JPY130 billion, JPY110 billion in innerwear and JPY20 billion
in non-[innerwear], mainly in the strengthened segments I explained earlier.
In terms of channels, the Company plans to increase the ratio of e-commerce to 40%,and to increase the sales ratio of self-managed sales floors and self-managed stores, which
can acquire and utilize customer data, to over 60%.
That is all from me. Thank you for your attention.

Overseas Business Initiatives

14

Major Initiatives for Overseas Business
Assuming the situation will continue to be uncertain, such as emergence of geopolitical risks anddecline in consumer confidence due to rapid inflation
Our Goals for VISION2030 (no change）

Overseas business initiatives under the medium-term management plan (revised)

In addition to achieving growth in existing areas (UK,US, and China) and expanding brand recognition incontinental Europe and India, we will transform ourbusiness structure to a high-profit structure

Assuming that the situation will continue to be uncertain, we will prioritize profit generation in FY2024
and FY2025 in each country while working to improve our management base and implementing growthstrategies for the next medium-term management plan

FY2031 Key KPIs (no change)¥108 billion
Operating profitability
10％
Sales revenue

1.

Steady growth in the U.K., the U.S.,
and China

2.

A bold business transformation to
EC business
Including customer EC, dedicatedEC ratio 50% and higher EC, and Wacoal EC sales

3.

Developing markets with large
potential for sales growth4.

Promoting the Asian headquarters
systemEmerging areas Germany: ¥3 billion, India: ¥7 billion

15

Growthstrategies

1. Growing EC
Expanding contact points with customers and achieving EC growth by promoting
digital strategies (OMO, CRM, Asia EC platform)
2. Developing and providing new products that meet market trends
Expanding contact points with new customers by developing and selling new
products based on market trend analyses in China and other countries in Asia

Strengthening
supply chain
management(1) Optimizing production and material procurement processes in overseas business(2) Reducing manufacturing costs by reorganizing the supply system within the Group(3) Expanding the supply network outside the Company to strengthen the affordable
market in China and Asia

Reviewingstrategies for
inefficientbusinesses

Withdrawal of LIVELY brand (IO)
After considering various possibilities for future business development, we determinedthat it would be difficult to improve the performance of the business in the future, anddecided to withdraw* Initiatives at major subsidiaries are explained on the following pages

Major Subsidiaries' Initiatives: Europe and the U.S
Wacoal Europe's initiatives

Wacoal International's (U.S) initiatives

In addition to promoting brand strategies to meet the diverse values ofcustomers, we will also form and promote growth strategies in regions withroom for growth, such as Germany and France

We will review the plan based on the current external environment. While
working to grow the EC business, we will begin to review our cost structure
to address the decrease in profit ratio due to increased costs➢ Accelerating the transition to an EC-focusedbusiness model➢ Accelerating the transition to an EC-focusedbusiness model

FY2026 Performance KPIs

Improving the efficiency of the Dutch warehouse,strengthening EC business outside the UK (development of
Wacoal own EC, collaboration with other companies' EC)➢ Increase sales in continental Europe
In addition to cultivating existing areas, we will strengthen
sales activities in new areas, such as Germany, where
there is significant room for growth. In addition to expanding
our sales network, including EC and physical stores, we will
also consider alliances and M&As with other companies toachieve growth with quality and speed

FY2026 Performance KPIs

Achieving continuous growth in the EC business bydeveloping new competitive compensation product groups
and strengthening CRM centered on digital fitting services✓ Sales revenue: ¥23.9 billion(CAGR: +5.6%)✓ Operating profitability: ¥2.6
billion (more than 10%)✓ EC ratio: 37%(FY2023: 31.7%)✓ Sales revenue: ¥28.8 billion(CAGR: 3.9%)✓ Operating profitability: ¥1.36
billion (5%)✓ EC ratio: 50%(FY2023: 45.6%)➢ Reviewing cost structure
In order to address the pressure of rising costs, we will
review retail prices, promote automation of distribution
operations (automatic picking, etc.), reduce procurement
costs, and begin reviewing our business model to optimize
our cost structure.

Wacoal America
Wacoal Europe
Total*1

Wacoal America
North America (U.S. and Canada)

Australia

UK

FranceGermany

Areas other than thoselisted on the left*4

Sales for FY2023

Wacoal Europe¥44.2 billion¥23.5 billion¥5.9 billion¥1.2 billion¥6.6 billion¥1.1 billion¥0.6 billion¥5.3 billion

EC¥17.5 billion¥11.4 billion¥2.8 billion

0¥2.4 billion¥0.2 billion¥0.3 billion¥0.4 billion

Physical stores¥26.7 billion¥12.1 billion¥3.1 billion¥1.2 billion¥4.2 billion¥0.9 billion¥0.3 billion¥0.9 billion

66%

3%

15%

2%

1%

12%

North America (U.S. and Canada)

Australia

UK

FranceGermany

OthersRetail market size*2¥1,804.5 billion¥98.7 billion¥416.8 billion¥205.5 billion¥351.1 billion

EC retail market size*2¥194.2 billion¥5.4 billion¥90.8 billion¥18.9 billion¥31.2 billion

Wacoal Group share*3

3.0%

2.4%

3.0%

1.1%

0.3%

Wacoal Group share*3 of EC

11.9%

-

4.8%

2.1%

1.9%

25 million people

67 million people

65 million people

83 million people

Sales ratio by area*1 to the total sales of Wacoal America andWacoal Europe

Innerwear market size

Innerwear

Population

16

373 million people*1 Simple sum of Wacoal America and Wacoal Europe (including internal transactions)*3 Wholesale sales are calculated by substituting retail amounts-*2 Source: Euro monitor materials in 2022
*4 Total export sales of Wacoal America and sales outside the areas indicated in Wacoal Europe

Major Subsidiaries' Initiatives: China and Other Countries in Asia
Initiatives in China

Other countries' initiatives in Asia

Through a brand strategies (product functions, prices, and promotions) that
achieve EC growth, we aim to return to sales and at the same time embark
on a business model reform to improve profitability

Cooperate among Asian subsidiaries under the Asian headquarters system. We will
implement measures that take advantage of the strengths of our own EC and othercompanies' EC to achieve growth➢ Developing products that meet customer
needs

FY2026 Performance KPIs

(1) Strengthening our ability to respond to changes incustomer purchasing behavior, needs, and product trends.
Conducting purchase analysis in major EC marketplaces,
formulating and executing brand strategies (productfunctions, prices, promotions), and aiming for EC growth(2) Developing sports and athleisure products andexpansion of high-end products➢ Improving management efficiency
Reviewing our cost structure to improve profitability.
Withdrawing poorly-performing stores and reducing
inventories✓ Sales revenue: ¥13 billion(CAGR: +12.4%)✓ Operating profitability: ¥0.88
billion (6.8%)✓ EC ratio: 35%(FY2023: 23.5%)■ Purchase analysis in major EC marketplaces in each country

1. Composition ratio of non-wire bras
100%

95%

* Survey period: May to June 2023
Research method: Analyzing thecharacteristics of the top sales partnumbers in major EC marketplaces75%(1) Other companies' EC: Focusing on acquiring new customers
by strategically strengthening cooperation with EC marketplaces(2) Wacoal own EC: We will enhance our own content, such as
membership programs, and accelerate collaboration with physicalstores➢ Strengthening business in India(1) In addition to the existing premium line, new affordable
products will be developed to expand the customer base (24AW)(2) Implementation of product planning in India and improvementof domestic procurement ratio

FY2026 Performance KPIs
(Wacoal India)✓ Sales revenue: ¥1.3 billion(CAGR: +24.1%)✓ Operating loss: -¥0.16 billion✓ Domestic procurement ratio:
55%(FY2024: 15%)

Percentage of top part numbers in the EC marketplace
Composition ratio of Wacoal

2. Composition ratio of the price range
100%

100%

80%

➢ Expanding customer contact points andimproving LTV

75%

80%

65%

64%

Providing a better customer
experience and driving customer
brand switching

60%

60%

Strengthening the developmentof products that take advantage
of our strengths

60%
50%

40%
20%

40%

45%

Poor response to customer
needs that are more comfortable
than other companies

30%

25%

15%

14%
21%

32%

7%

27%

9%

11%

0%

0%
China
中国

17

20%

Malaysia
マレーシア

The Philippines
フィリピン

Vietnam
ベトナム

Singapore
シンガポール10＄以下$10or lower

10＄台
$10
level

20＄台
$20 level$40 or lower50＄以上$50 or higher
30＄以下$30 or lower 40＄以下

The information found in this document has been prepared based on information available at the time of its publication.
The company does not warrant or promise that the information will lead to favorable results. It is also subject to change
without notice.
While we exercise great care when posting this information, we are not responsible for any errors in the publishedinformation.
This is a translation of the original Japanese document, prepared and provided solely for readers' convenience. In caseof any discrepancy between this translated document and the Japanese original, the original document shall prevail.

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