Doshisha Group
Medium-Term Business Plan
FY3/23 – FY3/25

Doshisha Corporation
TSE Prime Market (7483)
1•In this presentation I will go through the key points of our new
medium-term business plan, released on May 9, 2022.

1

FY3/21 Results Briefing: Doshisha WAY Growth Scenario
Our new
growth strategy

Management
philosophy andvalues

Develop productsthat areunique and exciting

Leverage our leadershipto acceleratebusiness growthFounding spirit

Our Four Positives Spirit (Values)

As a group of like-minded people,
we will create a passionate,resilient company that contributes to society

Positive for sellers, positive for buyers,
positive for the world,
positive for workers

Business model

Manufacturer capabilities x trading company capabilities x comprehensive retail support→ Create richer more comfortable lives with new ideas and themes in product planning

Strengths→ Risk management and cash flow (profit-focused) management→ Business portfolio anchored by two business models→ 4,800 retailers, 2,100 suppliers→ Supplier of numerous products in a wide range of categories, not only clothing, foodand homewares

VisionCreate an unrivalled company worldwide

Contribute tosociety

Create social value
2•

Based on our founding spirit – “As a group of like-minded people, wewill create a passionate, resilient company that contributes tosociety” – we have created the Four Positives Spirit: positive forsellers, positive for buyers, positive for the world, and positive forworkers. These principles underpin the vision that has guided ourbusiness activities to date – “Create an unrivalled company
worldwide.”•At the FY3/21 briefing, I explained our growth scenario, The Doshisha
WAY, shown in this slide.

•The key point of the scenario is to “leverage our leadership toaccelerate business growth” in promising growth fields.

•This year, we have developed our growth scenario further by adding
three key strategies, which I will now explain.

2＞＞Three Key Strategies
Management philosophy
and values

VisionCreate an unrivalled
company worldwide

Founding spirit
As a group of like-minded people,
we will create a passionate,resilient company that contributes
to society

Growthstrategy

Balancesheetstrategy

Our Four Positives Spirit(Values)
Positive for sellers, positive for buyers,
positive for the world,
positive for workers

ESG strategy< Doshisha’s keystrengths / features >→ Risk management→ Cash flow management→ Business portfolio
anchored by two businessmodels→ 4,800 retailers→ 2,100 suppliers◆ Growth strategy > Create a passionate company→ Create new businesses / expand EC and overseas businesses◆ Balance sheet strategy > Create a resilient business→ Build a financial base to withstand all eventualities /pay stable shareholder returns◆ ESG strategy > Create a company that helps realize a sustainable society→ Generate social value by developing the Four Positives Spirit
3•

Specifically, we have formulated our new three-year medium-termbusiness plan based on a growth strategy, balance sheet strategy
and ESG strategy.

•I will now look at each strategy in more detail.

3

＞＞Growth strategy (Create a passionate company)
Sales growth forecast(non-consolidated)

Growthstrategy

ＢＳ戦略

FY3/23-3/25 (e) CAGR

【Key】

¥118.0 billion
New businesses
Existing businesses

Total+10.5％
New businesses+64％¥11.0 billion

Existing businesses¥97.1 billion
YoY +6.5％¥107.0 billion+7％¥91.1 billion
FY3/22
Consolidated
ordinary incomeforecast¥7.5 billion

FY3/23 (estimate)¥8.4 billion

FY3/25 (estimate)¥10.0 billion
4•First, the growth strategy.

•In addition to growth in existing businesses, we will create new
businesses and expand our EC and overseas businesses.

•With this strategy, we aim to increase consolidated ordinary income
to ¥8.4 billion in FY3/23 and to ¥10.0 billion in FY3/25, as shown at thebottom of the slide.

•To achieve our targets for non-consolidated sales of ¥97.1 billion inFY3/23 and ¥118.0 billion in FY3/25, we are aiming for double-digit
CAGR, as shown on the right of the slide.

4＞＞Examples of New Businesses

Growthstrategy

ＢＳ戦略

Watch business:
Drive innovation by creating experiences!
Existing businesses
Monetize material goods

Doshisha

Provide exciting products!

Utilize sales channels of 4,800 partner
retailers – Doshisha business asset

Health data tracking
and payments, etc.

Provide product value in a wide range of markets

Doshisha as distributor

New businesses
Monetizematerial goods
Sell to companies(employees) focused onhealth & productivity
management

Monetize experiences
Supply health data andanalysis

Provideunique experiences!

Spur greater interestin health

Provide customer experience value in carefully selected markets
5•

To create new businesses, we will take the initiative by creating
unique, new value using our network of 2,100 suppliers and 4,800
partner retailers.

•For example, leveraging the position of our watch business, which
distributes health-focused smart watches, we will expand thebusiness by moving beyond the provision of material goods throughproduct sales to provide customer experience value and otherexperiences through ongoing relationships with end-users such as
health data analysis.

5＞＞Strengthen EC and overseas businesses (1)Growthstrategy

ＢＳ戦略

B2C is growth channel!
＞Proprietary EC sites＞Sales growth by channel(non-consolidated)

Lifestyle
CAGR+10.5％＞Breakdown of EC channels
CAGR
EC

Food & wine

+24％

EC
B2C

Non-EC

Non-EC+32％

Home & living+8％
B2C

+17％
B2B2C

Branded products

B2B2C

2023年3月期（予想）FY3/23 (estimate)2025年3月期（予想）
FY3/25 (estimate)2023年3月期（予想）
FY3/23 (estimate)2025年3月期（予想）
FY3/25 (estimate)

6•

The next part of our growth strategy is “expand EC and overseasbusinesses,” where we are targeting higher rates of sales growth thanin non-EC and domestic businesses. Along with new business creation,
we have positioned EC and overseas businesses as key growth drivers.

•In EC businesses, we are targeting sales CAGR of +24% in the three
years from FY3/23 to FY3/25, higher than our CAGR target of +10.5% for
non-consolidated sales.

•As shown on the right of the slide, we aim to drive EC business growthby strengthening direct B2C sales through proprietary websites andother channels. Our goal is to boost B2C sales by 32%.

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＞＞Strengthen EC and overseas businesses (2)Growthstrategy

ＢＳ戦略

Aiming to grow overseas, too＞Sales growth in Japan and overseas(non-consolidated)
CAGR

Mug bottles and otherkitchen accessories to belaunched overseas,
mainly in Asia

+10.5％
Overseas+27％Japan+10％

OverseasJapanKamome fans, which
generate a soft, natural
outdoor-feel breeze
To be launched in Asia,
Europe and North America

2023年3月期（予想）
FY3/23 (estimate)2025年3月期（予想）
FY3/25(estimate)

7•

We are targeting overseas sales growth of +27%, outpacing domestic
sales growth.

•Specifically, we plan to develop our proprietary mosh brand of mug
bottles and other products in South Korea, and roll out our Kamome
fan range, which won Japan’s Good Design Award, in Asia and othermarkets.

•In addition to this growth strategy, the Board of Directors approved
the issue of stock options at its meeting on May 9, 2022. The stock
option proposal will be put forward for approval at the 46th Annual
General Meeting of Shareholders, scheduled for June 29, 2022.

•These stock options will increase management motivation andcommitment to growing earnings, making it more likely that
Doshisha will achieve its goal of becoming a “passionate company”
by realizing its growth strategy.

7＞＞Balance sheet strategy (create a resilient business)

Balancesheetstrategy→ Doshisha will continue to explore M&A opportunities to complement
the initiatives below＞Build a financial base to withstand all eventualities
800
80

Consolidated retained earnings(¥ billions)
600
60445
44.5

488
48.8

517
51.7

554
55.4

57.8
578

602
60.2

650
65.0

680
68.0

400
40

Of retained earnings, ¥40
billion is to be set aside forbusiness recovery in theevent of a crisis

200
2000

FY3/15 16年3月期
FY3/16 17年3月期
FY3/17 18年3月期
FY3/18 19年3月期
FY3/19 20年3月期
FY3/20 21年3月期
FY3/21 22年3月期
FY3/2215年3月期＞Pay stable shareholder returns
Total

100%

配当総額
dividends

Sharebuybacks
自己株式取得額

Dividend
payoutratio
配当性向

Total(¥ billions)(単位：億円）

総還元性向shareholder return

50.0
5.080%

40.0
4.060%

30.0
3.040%

2.0
20.020%

1.0
10.00%
FY3/15 16年3月期
FY3/16 17年3月期
FY3/17 18年3月期
FY3/18 19年3月期
FY3/19 20年3月期
FY3/20 21年3月期
FY3/21 22年3月期
FY3/2215年3月期

0.00.0Exploring possible issuanceof new stock options in July
2022, in addition to stock
options already allocated inJuly 2014, and sharebuybacks

8•

There are two key elements in our balance sheet strategy – build afinancial base to withstand all eventualities, and pay stableshareholder returns.

•With the first, we will set aside around ¥40 billion of retained earnings
for business recovery in the event of a crisis, in line with our goal ofbeing “a passionate, resilient company” – part of our Founding Spirit.

•With the second, we aim to generate stable returns for shareholders,which may also include the use of share buybacks.

•In addition, we will continue to flexibly explore potential M&A deals
and business tie-ups as part of efforts to increase shareholder value
and build a more resilient company.

8＞＞ESG strategy (create a company that helps
realize a sustainable society)

Partner retailers:
4,800

Suppliers: 2,100

Environment

Generate social value by developing the Four Positives Spirit

Positiveforsellers
Society

Management
philosophy
Founding Spirit
Positiveforworkers

Positivefor theworld

Employees andtheir families

Society andshareholders

Corporate
governancePositiveforbuyers

成長戦略

ＢＳ戦略

ESG strategy

Create new demand and supply→ Use our 2,100 suppliers and 4,800 partner retailers
High inventory turnover business→ Reduce stock levels and waste to achieve
an inventory turnover ratio of 20x
Improve work-life balance→ Make business processes more efficient to reduce
overtime and increase ratio of leave allocations used
Help employees acquire official skills qualifications→ Deepen specialist skills of employees, spurring
motivation→ Create system that addresses wide range ofsocial needs
Provide physical support and donations
to children's food NPO – Seijyun Taskeiai
Board of Directors with independent oversight→ Appoint three outside directors to seven-person
Board of Directors (planned), two outside members tofour-person Audit & Supervisory Board
Upgrade internal control system→ Strengthen and expand internal control functions withinternal audits, internal whistle-blower system, Crisis
Management Committee, Compliance Promotion Committee

9•

Lastly, with our ESG strategy, we will step up efforts to create social
value by further developing our Food Positives Spirit – part of ourAction Plan.

•Specifically, in the environmental sphere, we will focus on creating
new supply and demand, and a high inventory turnover business•In the social sphere, we will improve work-life balance, help
employees acquire skills qualifications, and provide supplies anddonations to a children’s food NPO.

•In the governance sphere, we will ensure the Board of Directors has
independent oversight and upgrade the internal control system.

•Through these activities, we aim to “create a company that helps
realize a sustainable society.”

9Doshisha Corporation
TSE Prime Market (7483)
Business performance forecasts, outlooks and business plans discussed in thesematerials are derived from assumptions based on projections of the future businessclimate at the time that these materials were released. A variety of uncertainties andother factors contained in these forecasts, as well as future changes in business
operations and economic conditions, could cause actual results to differ materially fromthe forecasts found in these materials. Accordingly, no guarantee is offered regarding
the Company’s future business performance as projected in these materials.

10•

By implementing the three key strategies, we will drive our business forward
by creating a passionate, resilient company that contributes to society.

•Thank you for your time today. We look forward to your continued
understanding and support.

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