Revised Medium-Term Management Plan
FY2024 to FY2026
November 17, 2023
Wacoal Holdings Corp.

1

Hello, everyone. I am Masaaki Yajima, President and Chief Executive Officer of Wacoal
Holdings Corp. Thank you very much for taking time out of your busy schedule to attend
our information session today. Now, I will explain the revision material of the mid-term
management plan that was presented on November 9.
As Mr. Kawanishi of Wacoal Corp. will explain the domestic initiatives later, I will explain
the Group-wide initiatives.
As disclosed on November 9, in addition to weak sales in major regions, we have revised
downward our full-year earnings forecast disclosed on May 12 substantially, taking into
account the impact of implementation of structural reforms associated with the mediumterm management plan revision and the recording of impairment losses due to withdrawal
from the US business.
As a result, the Company expects to post a loss for the second consecutive fiscal year. We
take very seriously the concern this may cause to our shareholders and other stakeholders.
We are very sorry.
In particular, as the person in charge of the Global Headquarters, I take the withdrawal of
IO's business and the posting of a huge impairment loss very seriously.
While it is true that there have been significant changes in the external environment since
the acquisition, such as the regulation of digital advertising and the entry of competitors,
there are many aspects of management involvement in IO after the acquisition that need
to be reflected upon. As a result of our insistence on management centered on the former
management team, we were slow to respond to changes in the external environment andslow to move forward with management improvements.

Although our M&A has not been accompanied by results, this matter will be carefully
discussed at the board meeting, and we will use our reflections for the next step.
Since assuming the position of President in June of this year, I have been discussing how
to improve Wacoal as a whole, not only with internal executives but also with outside
directors, and the current medium-term plan revision is the result of a fundamental reviewof the current strategy.
As you can see, we have incorporated various painful measures into this medium-termplan revision. With determination, we will carry through the initiatives set forth in themedium-term management plan revision, restore basic profitability, and invest for the nextstage of growth.
In the process of the medium-term plan revision, we considered why Wacoal's
management was not doing well. One is that we could not keep up with the changes in
the world and consumers. Consumers' demands for innerwear are changing, but our
manufacturing lead time is long, and we have been slow to respond.
Generous customer service is one of our strengths, but there are many consumers who
do not need it. The first reason is that the company has not taken steps to address thefraying in its value chain, including planning and sales, which it considers to be its
strengths.
Another reason why things have not worked out so far is that we have not been prepared.
We have set forth many measures in the past but have not been able to complete them.
This is because they have postponed the problem, fearing the pain and pressure thatwould arise in the reform process.
We will continue to carry out the initiatives set forth in the medium-term business plan
revision, no matter what difficulties or pressures we may encounter. It is undeniable thatthe past management team has had a culture of following the past and postponing things,
but we will completely change that. I will be prepared to do so.

Revised Medium-Term Management Plan Outline
Causes of Deterioration in Profitability (Summary of Group Strategy Committee)
The speed of changes in the external environment were quicker than expected, and weaknesses in our supply chain
management have become apparent• With diversifying customer needs, we recognize that conventional advertising, product planning, and production systems are notenough to respond to market changes, causing deterioration in profitability and excessive inventory (especially with the existing productplanning and development lead time (LT), which takes more than one year to market, and improvements are urgently needed).
• As for the harmful effects of functional organizations, various coordinated tasks and complicated profit and loss management hinder
prompt decision-making• The responsibility for the management strategy is not clear, and the effectiveness of the strategy is not improving. In addition, theholding company’s supervisory function over its subsidiaries is insufficient, and improvements are needed

Policies of Revised Medium-Term Management Plan
In order to improve the probability of achieving VISION 2030, we will first shift to a structure that can steadily generate cash
1. Implementing business model reforms (supply chain management reforms and cost structure reforms) to restore basic
profitability
2. Carrying out “brand strategy” and “customer strategy”, utilizing the power of digital resources and our Company's strengths
to lead to further growth
3. Introducing ROIC management as business management infrastructure that supports measures to enhance profitability andthe effectiveness of strategies
4. Improving capital efficiency by reducing inventories, policy shareholdings, and streamlining real estate holdings
2

Now, let's get to the explanation of the medium-term revision. Page two.
First, let me explain the framework of the medium-term plan revision.
We summarize the cause of the deterioration in profitability as the manifestation of
weaknesses in our own supply chain management in response to a faster-than-expected
external environment. To improve the accuracy of achieving VISION 2030, we will firsttransform our structure to one that can steadily generate cash.
The policy for revising is the four points listed at the bottom of the page. Each of these
items will be explained on the following pages.

Background of Reviewing the Medium-Term Management Plan
Business performance has been sluggish for a long period of time, continuing to fall short of the medium-term management plan andinitial annual plans. Capital efficiency also remains low
We will review the medium-term management plan and take actions to improve the effectiveness of management■ Consolidated sales revenue achievement status
Planned
期初計画(Unit: million yen)

■ Consolidated operating income ratio achievement status
Planned
期初計画

Actual
実績

Actual
実績

8.0%
6.0%
200,000

4.0%
2.0%
0.0%
-2.0%
-4.0%

14/3期
19/3期 FY2020
20/3期 FY2021
21/3期 FY2022
22/3期 FY2023
23/3期 FY2024
24/3期
FY2014 15/3期
FY2015 16/3期
FY2016 17/3期
FY2017 18/3期
FY2018 FY2019■ ROE

150,000

6.0%
4.0%
2.0%
0.0%
100,000

-2.0%
14/3期
FY2014 15/3期
FY2015 16/3期
FY2016 17/3期
FY2017 18/3期
FY2018 19/3期
FY2019 20/3期
FY2020 21/3期
FY2021 22/3期
FY2022 23/3期
FY2023

14/3期 FY2015
15/3期 FY2016
16/3期 17/3期
FY2014FY2017 18/3期
FY2018 19/3期
FY2019 20/3期
FY2020 21/3期
FY2021 22/3期
FY202223/3期
FY2023

3

See page three.
Before I get into the explanation of the medium-term plan revision, I would like to explain
the process that led to the review.
As stated, the Company's performance has been sluggish for a long period of time, andthe Company has been unable to achieve not only its medium-term management plan but
also the initial plan for each fiscal year. Capital efficiency has also remained low.
As I explained earlier, we believe that the reason for this is that we did not promptly
implement changes in response to changes in the external environment due to our own
pride in our products and manufacturing and our optimistic view of the external
environment.
We have decided to revise our medium-term management plan because we believe it isnecessary to improve this situation by implementing actions to enhance management
effectiveness as soon as possible.

Formulating a Process of the Revised Medium-Term Management Plan
■ Main items to consider in the revised medium-term management plan
Board of Directors / Group Strategy Committee

Management infrastructure➢ Effective use of assets➢ Improving capital efficiency➢ Building a management system using
ROIC as an indicator➢ Reviewing the compensation structure

Overseas Group➢ Reexamining the medium-to-longterm strategies, mainly in Europe,
America and China

External consulting services

Group companies in Japan

Wacoal business structural reformproject➢ Action planning based on the firsthalf forecast➢ Business model reforms (coststructure reform / supply chain
management reform)➢ Growth strategies■ Process for formulating key items of the revised medium-term management plan
Implemented items

Specific activities

Members

Number of holdingsGroup Strategy Committee⚫ Reviewing key issues in the revised medium-term management plan
⚫ Determination of management strategies⚫ Board Members⚫ Outside directors/auditors

Wacoal(Japan) business structural reformproject⚫ Formulating growth strategies⚫ Studying the implementation items of cost structure reform andestimating the effects⚫ Reviewing and determining measures for supply chain management
reforms⚫ Directors & Outside directors⚫ Executive officers, relevant department members⚫ External consulting services

Monthly average:
2 or 3 times(WS will be held
separately)

Building a management system using ROIC
as an indicator⚫ Reviewing and formulating basic policies for introducing ROIC
⚫ Examining and conducting simulations of ROIC calculation method⚫ Considering internal inculcation methods⚫ Directors & Outside directors⚫ Executive officers, relevant department members⚫ External consulting services

The general meeting isheld 3 times(WS will be held
separately)⚫ Reviewing and formulating a basic policy on asset holdings⚫ Inspection of asset holdings by outside directors⚫ Directors & Outside directors⚫ Executive officers⚫ External consulting services

Examining as an agenda
for the Strategy
Committee(WS will be held
separately)

Effective use of assets and improving
capital efficiency

7 times* WS: Workshop

4

Page four. This is about the process of formulating the revision.
As already explained, we have established a Group Strategy Committee, which includes
outside directors, and have repeatedly discussed each of the listed agendas andfundamentally reviewed the current strategies.
In addition, a project team was established with outside consulting and other parties toaddress important issues related to Wacoal's structural reforms, the introduction of ROIC,
and capital allocation, and we proceeded with the formulation of the strategy with aconscious effort to ensure that it would be highly effective.

Targets of the Revised Medium-Term Management Plan
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

Manufacturing
technology for productsthat suit each customer

3

Organizational ability to meet
individual needs and embody
services

Introducing ROIC management⚫
⚫

Monitoring profitability and strategy effectivenessBusiness portfolio management

4

Promoting asset reduction⚫
⚫
⚫

Reducing inventories
Reducing strategic shareholdings
Streamlining real estate holdings

5

See page five. Let me explain the direction of the revision.
To put it simply, we have to bend over backward in terms of performance. We plan tochart a growth trajectory by firmly implementing structural reforms and enhancing brandstrength, customer loyalty, and human resources.
In parallel, the Company will strengthen its management control base to enhance
management effectiveness and improve capital efficiency.
The four major policies are as described. The first point is to implement business model
reforms to improve profitability, the second is to implement growth strategies to achieve
VISION 2030, the third is to introduce ROIC management, and the fourth is to promoteasset lightening.
Through these efforts, we will strive to improve and enhance profitability and capitalefficiency and transform ourselves into a company that can continue to invest in thegrowth necessary to sustainably increase corporate value and return profits to ourstakeholders.
We will now explain each of these initiatives starting on the next page.

Business Model Reform (1) Supply Chain Management Reform
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 storesales

3 Shortening planning and development lead time (LT)(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

Shortening

Additional
response thatmeets needs

Ordering in line with sales
trends for each product

6

Delivery to meetin-store demands

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

Head office /distribution
warehouse

Development
Shortening

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 six.
First, we will explain the supply chain management reforms being undertaken at Wacoal
Corp.
As explained at the beginning of this report, our lead time for product planning anddevelopment took more than a year, and we have been uniform in the distribution of
products on store shelves, resulting in a delay in responding to changes in consumer
behavior, which in turn has caused excess inventory.
In supply chain management reform, we will improve our ability to respond to changes incustomer needs by optimizing the mix of products in stores, controlling, and optimizing
inventory levels by shifting to production methods that match demand conditions, andshortening production lead times.
President Kawanishi will provide more details later.

Business Model Reform (2) Cost Structure Reform
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

7

See page seven. Next, I will explain the cost structure reforms to be implemented at
Wacoal Corp.
Based on the current sales and market trends, we will implement fundamental cost
structure reforms to transform our business structure into one that can secure a certain
level of profit even under such conditions, after carefully re-estimating the future outlook
for sales and earnings.
The Company plans to reduce costs through structural reforms by JPY7 billion by the fiscal
year ending March 31, 2026, improving 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 31, 2023.

Business Model Reform (3) Withdrawing LIVELY brand (IO)
Withdrawing from the LIVELY business of Intimates Online, Inc., a U.S. subsidiary, and liquidating the company✓ Since its acquisition in July 2019, we have developed our business by e-commerce sales as our main sales channel, utilizing new digital media centering on SNS as a communication
tool with customers✓ Sales fell short of the plan due to entry by competitors and restrictions on targeted advertising due to heightened restrictions on the use of personal information✓ After considering various possibilities for future business development, we determined that it would be difficult to improve the performance of the business in the future, and decided
to withdraw✓ As a result of the withdrawal from this business, approximately ¥ 7.3 billion will be recorded in FY2024, including an impairment loss on goodwill related to Wacoal International(Approx. ¥ 10 billion of impairment loss on goodwill in FY2023)■ Acquisition prices
Salestransition

Operatingincome transition(Unit: thousands of dollars)

100,000

FY2020

FY20210

40,00034,235

FY2022

FY2023

Performancetransitions
29,366(6,000)(15,000)

11,9670(20,000)

8

22/3期
FY2022

26,82526,82586,401

26,825

112,866

23/3期
FY2023

FY2024
24/3期(Estimate)

Company name
Address
Representative(5,000)29,80620,000

21/3期
FY2021--

86,401■ Summary of Intimates Online, Inc.
FY2024(Estimate)(10,000)

20/3期
FY202086,401

5,000

60,00039,321

Acquisition prices
Earnout payments
Total

Business plan
figures at the timeof acquisition

10,000Business plan
figures at the timeof acquisition

FY2021(Unit: thousands of dollars)

15,00080,000(Unit: thousands of dollars)
FY2020(11,494)(12,194)(14,259)
Performancetransitions(12,885)
In the medium-term
management planannounced in June 2022, weplan to achieve the breakeven point in FY2024 Q3

Business
description

Intimates Online, Inc.
136 Madison Avenue New York NY 10016 USA
Kristin DiCunzolo
Planning and sales of female innerwear

Capital

433,000 dollars

Date ofestablishment

May 1, 2015

Date of acquisition

July 30, 2019

Shareholders

WACOAL INERNATIONAL CORP. (100% capital ratio)

Page eight.
The third point of business model reform is to withdraw from unprofitable businesses. This
page describes the withdrawal of the LIVELY brand and the liquidation of IO, which havealready been disclosed. We are also considering plans to deal with other unprofitablebusinesses and unprofitable subsidiaries, as well as IO.
As of today, only IO has been confirmed, but we will examine the future ideal state of eachbusiness and determine an action plan for the continuation, sale, or withdrawal of eachbusiness.

Benefits and Temporary Expenses by Cost Structure Reform
Temporary expenses were recorded in FY2024 due to the cost structure reform of Wacoal (Japan)(withdrawal of brands and stores,
optimization of personnel, etc.) and the withdrawal of IO in the U.S. (temporary expenses associated with structure reform will also be
incurred in FY2025). The effects of cost structure reforms will gradually be shown from FY2025

Initial plan

Revised target

FY2024(May 12)

FY2024(November 9)

Sales revenue¥ 205 billion¥ 196 billion

Business profit¥ 6 billion¥ 1.7 billion

Withdrawing from
IO business-¥ -7.3 billion (*)

Domestic structuralreform expenses-¥ -6 billion

Operating income¥ 6 billion

Effects of profit
improvement

Approx. ¥ 7.5 to 8 billion/year➢ Wacoal(Japan) Structural Reform: ¥ 7 billion➢ IO deficit eliminated: ¥ 0.5 billion to ¥ 1billion⚫

⚫

¥ -12 billion

The above figures show only the effects ofimprovements in the implementation items of cost
structure reforms(without taking into account theeffects of supply chain management reforms andgrowth strategies).
It is estimated that the effects of structure reforms
will show themselves in FY2025, and the effects ofimprovements will continue from FY2026* Temporary expenses associated with the withdrawal of the LIVELY brand and the liquidationof IO have already been booked in the second quarter of the FY2024. The difference in therecorded amount from the forecast for the full year is due to the impact of reversal of leased
assets that will occur in and after the 3Q

9

See page nine. This section summarizes the effects of cost structure reforms and theliquidation of IO, as well as one-time costs.
As already disclosed, one-time expenses of approximately JPY13 billion will be recordedin the fiscal year ending March 31, 2024, due to cost structure reforms, including thewithdrawal of Wacoal brand stores and optimization of personnel, as well as the withdrawal
from the business and liquidation of IO Corporation in the United States.
The effects of cost structure reforms are expected to gradually emerge from the fiscal year
ending March 31, 2025, and we estimate that profit structure reforms will amount toapproximately JPY7.5 to JPY8 billion per year, and we will implement reforms with a senseof speed.

Growth Strategies to Achieve VISION 2030
By leveraging Wacoal’s strengths and digital capabilities to continue providing products and services that empower customers’ ability to “be themselves,”
we will develop beloved brands, build deep, broad, and long-term relationships with customers, and achieve growth as the Wacoal Group
1. Domestic business: To meet diversifying customer needs, we will contribute to the "beauty, comfort, and health of each customer"
Specific activities

Implemented items
Customer strategies⚫ We aim to improve LTV through personalized customer experiences by using
accumulated digital assets

Brand strategies⚫ Through brand management from a "customer's point of view," we develop attractive
brands with clear value

Focus segments⚫ Strengthening strategies tailored to market segments in the innerwear business(reinforcing high premium and affordable markets)⚫ Leveraging our strengths to reinforce our sports and health businesses to maximize
market opportunities

Focus channels⚫ Implementing measures to strengthen the channel for Wacoal EC, dedicated EC, anddirectly managed stores

Goals

FY2026
Wacoal sales revenue
Return to ¥ 94 billion(+3.2% compared to FY2023)

EC ratio for FY2026: 30%(+10 pts compared to FY2023)

2. Overseas business: Amid an uncertain business environment, we will first work to improve our management infrastructure and execute growth strategies
for the next medium-term management plan
Implemented items

Specific activities

Goals

Brand strategies⚫ Expanding contact points with new customers by developing and selling new products based onmarket analysis in China and other countries in Asia
⚫ In Europe and the U.S., we will promote brand strategies to meet the diverse values of customers

CAGR (FY2024 to FY2026)
America: 3.9% Europe: 5.6% China: 12.4%

Efforts to strengthen EC
business⚫ Other companies EC: Strategically strengthen cooperation with EC marketplaces⚫ Wacoal EC: Enriching original content such as membership programs and strengthening
cooperation with physical stores

Developing emerging
areas⚫ Formulating and promoting growth strategies in regions with growth potential, such as Germany,
France and India

EC ratio for FY2026: 30%(+4 pts compared to FY2023)
FY2031 Sales in the German and Frenchmarkets¥ 6.7 billion (¥ +5 billion compared to FY2023)

10

Page 10.
From here, I would like to explain our growth strategy for achieving VISION 2030.
As explained on the previous page, we plan to allocate the cash to be generated bystructural reforms to the next stage of growth. However, since it takes a certain amountof time for the effects of growth strategies to materialize, we have formulated our growthstrategies from a medium- to long-term perspective.
Regarding Japan, we intend to transform the innerwear market into an exciting market byleveraging Wacoal's strengths and digital capabilities to provide products and services thatempower customers' sense of self.
As for the overseas business, under the uncertain business environment, we will first workon improving the management foundation and implement the growth strategy for the next
mid-term business plan. Individual items are as described.

Brand Strategies ( Wacoal (Japan) )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

11

See page 11. I would like to explain our brand strategy, which is one of the growthstrategies for our domestic business.
For our domestic brand strategy, we have organized our market segments from a uniqueperspective and set up a brand portfolio according to the strengthened segments. By
executing brand management according to the strengthened segments, we will improvethe value provided to our customers.
In addition, we will implement brand renewal for our main brand, Wacoal, and work for
its renewed growth.
In areas other than innerwear, we aim to expand our business in the beauty, comfort, andhealth fields, including 3D measurement services, personalized services using customer
data, and strengthening our sports business such as CW-X.

Introducing ROIC management
Introducing ROIC management to improve capital efficiency and achieve a robust corporate structure
In addition to portfolio management, it is also used as a means of performance management to accurately measure results, andquantitatively link improvement activities on the ground with improvements in profitability and capital efficiency expected byinvestors and other stakeholders■ Introducing the process of ROIC management to business departments
KPIs

FY2026ROIC
6 to 7%

FY2024FY2025

FY2026⚫ Starting ROIC
management⚫ Links tocompensation

HD⚫ Consider
introducing ROIC
⚫ Conducting
simulations tograsp ROIC values

Wacoal(Japan)⚫ Sharing ROIC
management
introduction policy⚫ ROIC study
meetings⚫ Incorporating intobusiness activities(ROIC treebuilding)⚫ Starting ROIC
management⚫ Sharing ROIC
management
introduction policy⚫ ROIC study meetings⚫ Incorporating intobusiness activities(ROIC tree building)

Domestic andoverseassubsidiaries■ Purpose of introducing ROIC management

Inculcation process

TargetCompanies

Putting the management philosophy into practiceStrengthening business management functions

Introducing ROIC management⚫ Linking tocompensation⚫ Linking tocompensation⚫ Starting ROIC
management⚫ Linking tocompensation

Use with a corporate
perspective
Financial assessment of target
achievement status➢ Managing financial targets acrossthe Company➢ Optimizing the business portfolio➢ Managing new investment
profitability

Use with a business
operation perspective
Ensuring strategy effectiveness➢ Managing capital returns by theoperating company➢ Improving capital returns using the
ROIC tree➢ Linking with PDCA management andperformance evaluations

Achieving a return exceeding capital costs
Growth investments (reinvestments) and return tomulti-stakeholders

12

See page 12. Continuing on, I would like to discuss the introduction of ROIC management.
ROIC management will be introduced to improve capital efficiency and achieve a muscular
corporate structure.
ROIC will not only be used to manage company-wide financial targets, but also as aperformance management tool to accurately measure results, quantitatively linking onsite improvement activities with the improvements in profitability and capital efficiency
expected by investors and other stakeholders.
The implementation process for the business units is as described, and we assume ROIC
of 6% to 7% for the fiscal year ending March 31, 2026, the final year of the medium-termplan revision. In order to improve the accuracy of target achievement and theeffectiveness of the strategy to achieve it, we plan to link this to executive compensation
beginning in April 2025.

Promoting Asset Reduction
The Company’s basic policy is to sell any assets that do not contribute to raising corporate value
When selling, we will search for investment opportunities that will contribute to business growth, and determine thebusinesses that should be invested in from the perspective of ROIC

Implemented items

Specific activities

Goals

Reducing inventories⚫ Reducing inventories through business model reforms(supply chain management reform and cost structurereform)⚫ Appropriate disposal of inventory resulting from thewithdrawal and consolidation of unprofitable brands

Wacoal:Inventory turnover ratio in FY2026: 2.5
turns

Reducing strategic
shareholdings⚫ Gradually selling the shareholdings that we have agreed
to sell

During FY2024 to FY2026 we will sell
approx. ¥ 30 billion of strategic
shareholdings(Reducing less than 10% of net assets by
FY2026)

Streamlining real estateholdings⚫ As for real estate that does not contribute to enhancing
corporate value, we will proceed with consideration basedon the basic policy of selling

While carefully examining the feasibility
and validity, we will gradually respond(starting the phase from FY2024)

13

Page 13. Next, I will explain the promotion of asset lightening.
To improve asset and capital efficiency, we made it a basic policy to sell assets that do notcontribute to increasing corporate value. In making divestments, we will search forinvestment opportunities that will contribute to business growth, and in making suchinvestment decisions, we will do so from the perspective of ROIC.
The main targets to be considered and implemented for review of holdings for asset
lightening are inventories, policy stocks, and real estate holdings.

Quantitative Targets in the Revised Medium-Term Management Plan
In light of the external environment, initial sales targets have been revised downward. On the other hand, through business model reforms and growthstrategies, we will strengthen our ability to respond to customer changes and profitability while striving to improve capital efficiency. In addition, we aim toachieve a ROE of 7% and a PBR of 1 time or more.

Initial goal
FY2025

Revised target+1year

FY2026

No change
FY2031(VISION 2030)

Sales¥ 220 billion¥ 203 billion¥ 270 billion

Operating income¥ 16.5 billion¥ 13 billion¥ 27 billion

Operating income
ratio

7.5%

6.4%

More than 10%

ROE

6%

7%

More than 10%

ROIC

-

6% to 7%More than 10%

EPS¥ 200 or more

¥ 200 or more

-

+1%

14

See page 14. This is about the quantitative goals of the revision.
In light of the external environment, the target year has been pushed back one year fromthe fiscal year ending March 31, 2025, to the fiscal year ending March 31, 2026, and theinitial sales target has been revised downward to JPY203 billion.
At the same time, we will strive to improve capital efficiency and achieve ROE of 7% andP/B ratio of over 1x, while strengthening our ability to respond to customer changes andprofitability by reforming our business model and implementing growth strategies.
There is no change to the VISION 2030 targets.

Earnings Plan for the Revised Medium-Term Management Plan
Despite a temporary decline in performance due to the impact of structure reform, we will recover basic profitability by optimizing sales
operations and implementing various reforms. We aim to achieve a sales revenue of ¥ 203 billion and a business profit of ¥ 13 billion in
FY2026 toward the VISION 2030 target■ Sales planning■ Business profit plan

Growth of othersubsidiaries(Unit: billion yen)

(Unit: billion yen)

Growth ofbusiness in
China and Asia
Wacoal(Japan)
Growth in the inner business: +2.0
Operation improvements: +3.0

Other subsidiaries+1.5

Growth in Europe
and America

Growth ofoverseas business

+4.0

+4.5

+1.0

Wacoal(Japan)
Deterioration of
earnings due to adecrease in sales¥ 196 billion

FY2024(Estimate)+8.5(Announcementon Nov. 9)¥ 1.7
billion+3.6

Impact of IO's
withdrawal¥ 13 billion

Decrease in revenue dueto the withdrawal from IO
business¥ 203 billion

Wacoal(Japan)
Decrease in revenue
due to brandaggregation andstore withdrawal-4.0

FY2026 plan

+5.0

FY2026 plan

FY2024(Estimate)(Announcement on Nov. 9)

-4.0

+1.0

Wacoal(Japan)
Cost reductions associated withstructure reform: +7.0
Growth of existing businesses: +1.5

-2.8

15

See page 15. The difference between the mid-term management plan and the projectedsales revenue and business profit for the fiscal year ending March 31, 2024, is shown in
the [waterhole].
While sales revenue is expected to decline due to Wacoal's structural reforms and theimpact of the liquidation of IO, we are targeting JPY203 billion in the fiscal year ending
March 31, 2026, the final year of the medium-term plan revision, through optimization ofsales operations and growth of overseas businesses.
We also aim to achieve operating income of JPY13 billion by improving profitability throughstructural reforms and growth of overseas businesses.

Financial Strategies
1. Improving profitability through business model reforms and growth strategies as a top priority, we will reduce inventories
and strategic shareholdings, and streamline real estate holdings to improve capital efficiency and ROE
2. While prioritizing investments for future growth, we will actively return profits to shareholders to improve capital efficiency

Cash generated during the 3-year period
Net income * excluding
impairment loss

¥ 10 billion

Depreciation costs*excluding lease liabilities¥ 20 billion

Asset reduction and debt
utilization¥ 80 billion
Of this, ¥ 30 billion is for reducing strategic
shareholdings

Total: ¥ 110 billion
Investment in new andexisting businesses

Returning dividends¥ 40 billion¥ 15 billion➢ Focusing on IT and digital investments
for growth➢ Investment in human capital➢ Continuing to pay stable dividends while
taking into account our consolidated
financial results and the status of asset
sales

Acquisition of treasury shares¥ 55 billion➢ Actively promoting improvements incapital efficiency

16

Page 16. This is the financial strategy newly formulated for the medium-term plan revision.
As mentioned above, during the medium-term plan revision period, we will strive toimprove

profitability

through

structuralreforms,

reduceinventories

andpolicyshareholdings, and liquidate real estate holdings.
The policy is to actively return the cash generated thereby to shareholders in order toimprove capital efficiency, while giving priority to investment in growth. We will work toachieve our ROE and ROIC targets through both business and financial strategies.

Efforts to Exceed PBR of 1 x or more
(Summary of Revised Medium-Term Management Plan)
Implemented items

Specific activities

Executing growth strategies⚫ Executing domestic and overseas growth strategies

Business model reform⚫ Supply chain management reform⚫ Executing cost structure reform⚫ Dealing with unprofitable businesses

Target indicators

Increase in net income⚫ Reducing inventories

FY2026
ROE: 7%⚫ Reducing strategic shareholdings
Promoting asset reduction

Reducing shareholder
equityFY2026PBR exceeding 1.0
time⚫ Streamlining real estate holdings

Cash allocations⚫ Growth investments and investment in existing
businesses⚫ Proactively returning profits to shareholders

Strengthening management
infrastructure (governance)⚫ Increasing the number of outside directors (fromJune 2023)⚫ Introducing ROIC management⚫ Introducing share-based compensation linked tomedium-term performance⚫ Strengthening investment in our workers(improvement of working conditions, etc.)⚫ Further strengthening of IR/SR activities

Strengthening holding company’s supervisory functions andimproving management effectiveness(Managing the progress of structure reform by the Group
Strategy Committee)
Improving worker engagement
Promoting discussion with the market

17

See page 17.
This will be an effort to resolve our long-term stagnant P/B ratio of less than 1x. By
advancing the business and financial strategies explained today, we aim to achieve a ROE
of 7% during the medium-term plan revision period.
We recognize that our own cost of equity is in the 6% range, and we hope to eliminate
the P/B ratio of 1x due to this. Rather than being satisfied with a P/B ratio over 1x, we
intend to continuously strive to improve P/B ratios through ongoing efforts to improve
profitability and capital efficiency in the next mid-term plan and beyond in order to achieve
VISION 2030.

Toward VISION 2030
Improving profitability and capital efficiency by steadily implementing measures in accordance with the revised medium-term management plan.
We will not change the target values set forth in “VISION 2030,” and improve the probability of achievement by increasing the effectiveness ofmanagement.

Sustainable growthFoundation andgrowth period
Goals to aim for in FY2031

Reform period

VISION 2030

Next medium-term
management plan
Revised medium-term
management plan

FY2027 to FY2031⚫

FY2024 to FY2026⚫
⚫

Shifting to a structure that can steadily generate
cash(Promoting business model reform and asset
reduction)⚫
⚫

We will achieve the results of the business model
reform and growth strategies that we have
implemented in the previous year
We will continue to improve management
efficiency through supply chain management
We will use the resources obtained throughstructure reform to invest in growth and ourworkers to achieve sustainable growth
In addition to continuous improvements, we will
strive to achieve the goals of “VISION 2030” byimplementing new growth investments

To evolve and grow as the "Global Wacoal Group" by
providing beauty and richness to each individual's
body and mind along with high sensitivity and quality.
⚫
⚫
⚫
⚫
⚫

Achieving global growth
Achieving a high profitability structure and ROE
higher than 10%
Deepening the provided value and expanding
business fields
An attractive corporate culture in which workers
can fully realize their abilities (Wacoal: 50% of
female managers)
Solving materialities (material issues)(Strengthening responses to environmental andsocial issues)

18

Page 18. This is an initiative toward VISION 2030.
As mentioned on page 14, we will not change the targets set forth in VISION 2030. The
medium-term business plan revision period is positioned as a period of reform, and wewill improve profitability and capital efficiency through the steady implementation of eachmeasure in accordance with the plan.
For the next medium-term management plan and beyond, we will position the period as
a budding and growth period, and in addition to reaping the fruits of reforms to implement
this medium-term plan revision, we will aggressively make investments for the next stageof growth.
Through the implementation of the medium-term management plan revision, we will
enhance the effectiveness of management and improve the accuracy of achieving the
VISION 2030 goals.

References: Revised medium-term management plan figures
Initial plan
(Announcement on Jun. 3, 2022)

FY2024 plan
(Announcementon Nov. 9)

FY2023Result

The final year of
the medium-term
management plan

VISION 2030

FY2026

FY2031

FY2023

FY2025

Sales revenue¥ 205 billion¥ 220 billion¥ 188.6 billion¥ 196 billion¥ 203 billion¥ 270 billion

Business profit¥ 7 billion¥ 16 billion¥ 4.1 billion¥ 1.7 billion¥ 13 billion¥ 27 billion

3.4%

7.3%

2.2%

0.9%

6.4%

More than 10%¥ 6.5 billion¥ 16.5 billion¥ -3.49 billion¥ -12 billion¥ 13 billion¥ 27 billion(Operating profit margin)

3.2%

7.5%

-

-

6.4%

More than 10%

Net profit attributable toowners of the Company¥ 5.5 billion¥ 12.5 billion¥ -1.78 billion¥ -10.8 billion¥ 10 billion¥ 21 billion

EPS

¥ 97

¥ 200 or more

¥ -29.66

-

¥ 250

-

ROE

-

6.0%

-0.8%

-

7%

More than 10%

ROIC

-

-

-

-

6% to 7%More than 10%

Shareholder equity-¥ 210 billion¥ 213.1 billion-¥ 140 billion-(Business profit margin)

Operating income19

See page 19. This will be the last page.
For reference, we have summarized the planned figures for the initial medium-term plan
revision and VISION 2030. Please see this later.
Lastly, we would like to reiterate our deepest apologies for our poor performance and thefact that we will be in the red for the second consecutive fiscal year as we implement
structural reforms for the future. Although the environment surrounding our group is
becoming increasingly severe, we will steadily implement the measures of the mediumterm management plan revision to pave the way for renewed growth.
We would like to thank our stakeholders for their continued support.
That is all the explanation from me. Thank you for your attention.

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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