Internet Disclosure in Connection with the Notice of the74th Ordinary General Meeting of Shareholders

CONSOLIDATED STATEMENT OF EQUITYNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSNOTES TO THE NON-CONSOLIDATED FINANCIAL STATEMENTS(For the period from April 1, 2021 to March 31, 2022)

Wacoal Holdings Corp.
The “Consolidated Statement of Equity” and the “Notes to the Consolidated Financial Statements,” as well as the “NonConsolidated Statement of Changes in Net Assets” and the “Notes to the Non-Consolidated Financial Statements,” of theaccompanying attachments to the Notice of the 74th Ordinary General Meeting of Shareholders, are disclosed by postingon the website of Wacoal Holdings Corp. (“the Company”) (https://www.wacoalholdings.jp/ir/general_meeting/),
pursuant to the provisions of the applicable laws and regulations and Article 15 of our Articles of Incorporation. The“Consolidated Statement of Equity,” the “Notes to the Consolidated Financial Statements,” the “Non -Consolidated
Statement of Changes in Net Assets,” and the “Notes to the Non -Consolidated Financial Statements” are audited upon the
preparation of the independent auditor’s report and the audit report by the Audit & Supervisory Board as a part ofconsolidated financial statements and non-consolidated financial statements.

CONSOLIDATED STATEMENT OF EQUITY
Year ended March 31, 2022
(Thousands of shares, Millions of yen)
EquityItems

As of March 31,
2021

Number of
Shares of
Outstanding
CommonStockCommonStock

Additional
Paid-in
CapitalRetained
Earnings

62,421

13,26029,120181,346

Net income
Other
comprehensive
income (loss)
Foreigncurrencytranslation
adjustments
Pension liability
adjustments
Cash dividends
paid to Wacoal
Holdings Corp.
shareholders
Cash dividends
paid tononcontrollinginterests
Repurchase oftreasury stock
Cancellation oftreasury stock
Restricted stockcompensation
Share-based
compensation
granted andexercised
Equitytransactions with
noncontrollinginterests
As of March 31,
2022

Treasury
Stock, at
Cost

Total Wacoal
Holdings
Corp.
Shareholders’EquityNoncontrolling
Interests

Total Equity(8,876)215,612

3,004

218,616

4,608

(67)

4,541

5,944

5,944

80

6,024

1,364

1,364

1,364

(2,498)(2,498)

Accumulated
Other
Comprehensive
Income762

4,608(2,498)(82)(1,001)(82)(2,089)(2,089)(2,089)

0

(0)

1

1

1

27

(23)

75

52

52

11

(20)

31

11

11

61,45813,26029,077

183,456

8,070(10,858)

223,005

112

112

3,047

226,052_________(Note 1)
Amounts less than ¥1 million are rounded to the nearest million.
(Note 2)The “number of shares of outstanding common stock” has been rounded to the nearest thousand.

-1-

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(NOTES TO BASIS OF SIGNIFICANT MATTERS IN PREPARING CONSOLIDATED FINANCIAL
STATEMENTS)
1.

Standard of Preparation of Consolidated Financial Statements
Pursuant to the provisions of the first paragraph of Article 120-3 of the Ordinance on Company
Accounting, the consolidated financial statements of Wacoal Holdings Corp. and its subsidiaries(collectively, the “Group”) have been prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”). A part of the disclosures required under U.S.
GAAP is omitted in accordance with the provisions of the second sentence of the first paragraph of
Article 120 of the Ordinance on Company Accounting, which is applied mutatis mutandis pursuant to
the third paragraph of Article 120-3 of the Ordinance on Company Accounting.

2.

Matters Regarding the Scope of Consolidation(1) Number of consolidated subsidiaries: 56(2) Principal consolidated
subsidiaries:(Note)

3.

Wacoal Corp.; Peach John Co., Ltd.; Lecien Corporation;
Kyushu Wacoal Manufacturing Corp.; Nanasai Co., Ltd.; Torica
Inc.; Wacoal International Corp.; Wacoal America Inc.; Wacoal
Europe Ltd.; Wacoal EMEA Ltd.; Wacoal Europe SAS; Wacoal
International Hong Kong Co., Ltd.; Wacoal Hong Kong Co.,
Ltd.; Wacoal Investment Co., Ltd.; Wacoal China Co., Ltd.; andA Tech Textile Co., Ltd.

As of April 1, 2022, Kyushu Wacoal Manufacturing Corp., our consolidated subsidiary haschanged its trade name to Wacoal Manufacturing Japan Corp.

Matters Regarding the Application of the Equity Method(1) Number of affiliated companies: 7(2) Principal affiliated companies:

4.

Shinyoung Wacoal Inc.; Taiwan Wacoal Co, Ltd.; and Thai
Wacoal Public Company Limited

Matters Regarding the Standard of Accounting Treatment(1)

Valuation standard and method of significant assets(i) Marketable securities and investments
Based on the provisions of the U.S. Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification (“ASC”) 320, “Investments – Debt Securities,” and FASBASC 321 “Investments – Equity Securities,” marketable securities and investments have beenclassified as “debt securities” and “equity securities,” and debt securities have been further
classified as “available-for-sale securities” and “held-to-maturity securities.” “Available-forsale securities” are recorded at fair value, and “held-to-maturity securities” are recorded atamortized cost. Gain or loss on sale of debt securities is calculated based on the movingaverage method.
Equity securities are measured at fair value and unrealized holding gain or loss is recorded in
net profit or loss.
(ii) Inventories
Inventories are stated at the lower of cost or net realizable value. For work in process andfinished products, cost is determined by the average cost method, and for raw materials, cost isdetermined by the first-in, first-out method.
-2-

(2)

Depreciation method for significant depreciable assets
Depreciation method for fixed assets
The straight-line method is mainly used for depreciation of property, plant and equipment.
The straight-line method is used for amortizing intangible assets. In accordance with theprovisions under FASB ASC 350, “Intangibles — Goodwill and Other,” assets with indefinite
useful lives are not amortized, but rather judged for impairment at least annually or at the time
when any indication of impairment occurs.

(3)

Basis of accounting for significant allowances
Allowance for doubtful receivables
The allowance for doubtful receivables is stated at an amount considered to be appropriate
based on the Group’s past credit loss experience and an evaluation of potential losses inreceivables outstanding.

(4)

Other significant matters in preparing the consolidated financial statements(i) Method of accounting treatment for retirement benefits
In accordance with the provisions of FASB ASC 715, “Compensation – Retirement Benefits,”
the Group accounts for retirement benefits for employees, based on the fair values of liabilities
for termination and retirement benefits and plan assets as of the end of the current fiscal year.
(ii) Matters concerning the fiscal year end of consolidated subsidiaries
The fiscal year end of the Group’s Japanese consolidated subsidiaries is consistent with theconsolidated fiscal year end. The fiscal year end of overseas consolidated subsidiaries is also
consistent with the consolidated fiscal year end, except for Wacoal Hong Kong Co., Ltd. andnine other companies. The fiscal year end of Wacoal Hong Kong Co., Ltd. and the nine othercompanies is December 31. Financial statements of these overseas consolidated subsidiaries
are consolidated based on their fiscal year end. Necessary adjustments have been made forsignificant events that occurred during the period between their fiscal year end and March 31.

(SIGNIFICANT ACCOUNTING ESTIMATE)
The following is a list of item of which amount has been prepared using accounting estimate andrecorded in the consolidated financial statements for the current fiscal year that may have a material
effect on the consolidated financial statements for the next fiscal year.
Valuation of goodwill arising from the acquisition of WACOAL EUROPE LTD. ¥9,932 million
To test for goodwill impairment, the carrying amount of each reporting unit is compared with its fairvalue. If the carrying amount of a reporting unit exceeds its fair value, an impairment charge isrecognized in an amount equal to that excess. To measure their fair values, our Group used the
expected present value of future cash flows and incorporated relevant unobservable inputs, such as
management's internal assumptions about future cash flows and appropriately risk-adjusted discountrates.
Such assumptions include fluctuations in business activities, tax rates and risk-adjusted discount rates.
There is a possibility that impairment charges would be recognized if the forecast of business results
deteriorates or the tax rates or risk-adjusted discount rates increase.
Based on the aforementioned impairment assessment, our Group did not record any impairment
charges on goodwill for Wacoal Europe Ltd. in the fiscal year ended March 31, 2022.

-3-

(NOTES TO THE FINANCIAL INSTRUMENTS)
1.

Matters Regarding the Status of Financial Instruments(1)

Policy for financial instruments

To manage surplus funds and focus on safety management, the Group establishes certain conditions aswell as limits, and determines an eligible range for investments. For financing, the Group may usebank loans as necessary. The Group may use derivatives to offset risk from exchange fluctuations inforeign currency transactions, interest rate risk from bank loans, and risk of stock price fluctuations
from stocks held, but will not engage in speculative transactions.
(2)

Details and risk of financial instruments and risk management structureMarketable securities and investments that are debt securities consist of bonds, and equities securities
consist of mutual funds and stocks. These instruments are subject to risk from market fluctuations, and
the Group regularly reviews their fair values.
The Group takes appropriate measures to reduce customer credit risk for notes and accounts receivable,according to the Group’s control procedures.
Bank loans are utilized mainly for the expansion of business and funding of working capital, and are
subject to interest rate fluctuation risk.
Almost all of trade notes payable, trade accounts payable and other payables are due within a year.
The Group executes/manages derivative transactions according to the Group’s handling procedures,
which stipulate specific targets and ranges for such transactions.
(3)

Supplemental note on matters regarding fair values of financial instruments

Fair values of financial instruments are estimated based on market price information related to financial
instruments and details of relevant contracts at the end of a fiscal year. These estimates are made by theCompany and include the Company’s judgements. Such judgements may have a material influence on
results of the estimates given the uncertainty. Therefore, changes in the underlying assumptions may
have a material impact on such estimates.
(4)

Concentration of credit risk

The Group’s business consists primarily of sales of women’s intimate apparel to a large and diverse
range of customers in the Japanese retail industry, including well-established department stores,
general merchandise stores, and other general retailers and specialty stores. No single customer
constitutes 10% or more of total sales.

-4-

2.

Fair Values of Financial Instruments
Amounts recorded in the consolidated balance sheet, fair values, and their differences as of March 31,
2022, are as follows. Investments in affiliated companies considered to be nonmarketable (amountrecorded in the consolidated balance sheet: 8,531 million yen) are excluded from the table below.
(Millions of yen)Amount recorded in the
consolidated balance sheet (*)
37,982
1,387

Fair value (*)

Difference(1) Cash and cash equivalents
37,982(2) Time deposits
1,387(3) Notes and accounts
19,414
19,414
receivable(4) Investments in affiliated
14,304
10,1894,115
companies(5) Investments
47,92647,926(6) Short-term bank loans(10,227)(10,227)(7) Trade notes payable
(558)
(558)
(8) Trade accounts payable(10,067)(10,067)(9) Other payables(7,006)(7,006)(10) Income taxes payable(1,408)(1,408)(11) Long-term debt (including
Current portion of long(1,626)(1,570)(56)
term debt)(12) Contingent consideration
(820)
(820)
(13) Derivatives (**)
96
96_________(*) Amounts in parentheses represent amounts in the liability section of the consolidated balance sheet.
(**) Claims and obligations arising from derivative transactions are shown on a net basis and items inparentheses represent net debt in total.
3.

Financial Instruments Categorized by Fair Value Hierarchy
The fair value of financial instruments is categorized into the following three levels depending on theobservability and significance of inputs used in making fair value measurements:
Fair value at Level 1: Inputs are quoted prices in active markets for identical assets or liabilities.
Fair value at Level 2: Inputs are quoted prices for similar assets or liabilities in active markets, quoted
prices for identical or similar assets or liabilities in markets that are not active,
inputs other than quoted prices that are observable, and inputs that are derived
principally from or corroborated by observable market data by correlation orother means.
Fair value at Level 3: Inputs are unobservable.
If multiple inputs are used that have a significant impact on the measurement of fair value, the fairvalue is classified at the lowest level in the fair value measurement among the levels to which each of
those inputs belongs.

-5-

(1)

The financial assets and liabilities measured at the fair values in the consolidated balance sheet(Millions of yen)
Category

Investments
Equity securities
Mutual funds
Other
Contingent consideration (long-term)
Derivatives(2)

Level 144,814
137-

Fair Value
Level 2
Level 3
96

2,793
182
(820)
-

Total
47,607
137
182
(820)
96

The financial assets and liabilities no measured at the fair values in the consolidated balance sheet(Millions of yen)
Category

Cash and cash equivalents
Time deposits
Notes and accounts receivable
Investments in affiliated companies
Short-term bank loans
Trade notes payable
Trade accounts payable
Other payables
Income taxes payable
Long-term debt

Level 1
10,189-Fair Value
Level 2
Level 337,982
1,387
19,414(10,227)(558)(10,067)(7,006)(1,408)(1,570)-Total
37,982
1,387
19,414
10,189(10,227)(558)(10,067)(7,006)(1,408)(1,570)(Note) Valuation methodologies and inputs used for measurement of the fair value of assets and liabilities:
Investments/Investments in affiliated companies
The fair values of listed equity securities and listed mutual funds are valued using unadjusted quoted
prices in active markets with sufficient trading volume and frequency and are classified as Level 1.
Fair values of nonmarketable equity securities are measured by comparable multiple valuation method
using financial indicators or other appropriate valuation methods and are classified as Level 3.
Contingent consideration (long-term)
The fair value of contingent consideration is measured by the Monte Carlo simulation using
unobservable inputs and are classified as Level 3. Other payables include contingent consideration of¥673 million, which has been fixed.
Derivatives
Derivatives are foreign currency exchange contracts, and the fair values of derivatives are measured atthe value determined by financial institution and are classified as Level 2. There are no derivatives towhich hedge accounting is applied.
Cash and cash equivalents, time deposits, notes and accounts receivable
The fair values of these items are measured at the value determined using the discounted present value
method based on the amount of receivable, the time to maturity, and the interest rate, taking into
account credit risk, for each receivable classified by certain time periods and are classified as Level 2.
Short-term bank loans, trade notes payable, trade accounts payable, other payables and income taxes
payableThe fair values of these items are measured at the value determined using the discounted present value
method based on the future cash flow, the time to maturity, and the interest rate, taking into accountcredit risk, for each liability classified by certain time periods and are classified as Level 2.

-6-Long-term debt
The fair values of long-term debt are measured at the value determined based on a discounted cash
flow analysis, using a deemed interest rate on equivalent borrowings with similar term and remaining
maturities and are classified as Level 2.
(NOTES TO REVENUE RECOGNITION)
1.

Disaggregation of Revenue from Contracts with Customers
The Group focuses on sales of innerwear (mainly women’s foundation garments and lingerie,nightwear and children’s underwear), outerwear, sportswear, and other textile goods and related
products (“Products”), and our customers include retail or wholesale distributors and consumers inJapan and overseas.
(Millions of yen)
Fiscal Year ended March 31, 2022
Innerwear
Foundation and lingerieNightwear
Children’s underwear
Subtotal
Outerwear/Sportswear
Hosiery
Other textile goods and related products
OthersTotal

2.

140,233
6,723
789
147,745
10,789
974
5,342
8,010
172,860

Basic Information to Understand Revenues from Contracts with Customers
Revenue from sales of our Products is recognized when performance obligations are satisfied, which isupon delivery of the Products. Revenue from sales on consignment, however, is recognized when our
Product is sold to the ultimate consumer.
Revenue from sales of our products is recognized when performance obligations are satisfied, which isupon delivery of products. We invoice when we satisfy the performance obligation and receive cash
payment shortly thereafter. The amount of consideration does not include a significant financing
component.
The Group’s revenue is recognized for transactions, net of any trade discounts or rebates given. We
generally provide a right of return to our customers. In order to estimate the transaction price,provision for expected returns is deducted from revenue based on historical returns.

3.

Information to Understand Revenue for the Current Fiscal Year, the Next Fiscal Year andOnwards
Contract liabilities from contracts with customers consist mainly of customer loyalty points.
Some of subsidiaries have customer loyalty programs as part of the promotion and provide loyalty
points to customers when they purchase the products. The points provided to customers are identified
as performance obligations, which are satisfied when the points are redeemed for the products. The
points are expected to be used or expire over the next two years. The unredeemed points as of the endof year are recorded as contract liabilities, which are estimated based on actual redemption amounts
from previous fiscal year. Contract liabilities are included in “Other current liabilities” and the amountof contract liabilities is as follows:
Fiscal year ended March 31, 2022
1,321 million yen

Contract liabilities

Revenue recognized for the fiscal year ended as of March 31, 2022, which had been included in thecontract liabilities balance at beginning of the year was 998 million yen.

-7-

(NOTES TO PER SHARE INFORMATION)
Wacoal Holdings Corp. shareholders’ equity per share
Net income per share attributable to Wacoal Holdings Corp.
Diluted net income per share attributable to Wacoal Holdings Corp.

¥3,628.56¥74.04¥73.73(NOTES TO SIGNIFICANT SUBSEQUENT EVENTS)
Purchase of Treasury Stock
The Board of Directors adopted a resolution at a meeting held on May 13, 2022 regarding matters related topurchase of treasury stock pursuant to the provisions of Paragraph 1, Article 459 of the Companies Act.
1.

Reason for Purchase of Treasury StockTo return profits to the shareholders, improve capital efficiency and implement our capital policy withincreased flexibility tailored to the business environment.

2.

Details of Purchase(i) Type of shares to be purchased:

Common stock of the Company(ii) Total number of shares to be purchased:

5,500,000 shares (at maximum)(iii) Aggregate purchase amount:¥10,000 million (at maximum)(iv) Purchase period:

From June 4, 2022 through March 24, 2023

Cancellation of Treasury Stock
The Board of Directors adopted a resolution at a meeting held on May 13, 2022 regarding matters related tocancellation of treasury stock pursuant to the provisions of Article 178 of the Companies Act.
(i) Type of shares to be cancelled:

Common stock of the Company(ii) Number of shares to be cancelled:

1,089,042 shares(iii) Date of cancellation:

May 23, 2022

-8-

NON-CONSOLIDATED STATEMENT OFCHANGES IN NET ASSETS
Year ended March 31, 2022
(Millions of yen)
Shareholders’ Equity
Additional paid-in
capitalRetained earnings
Other retained earnings

Items

Balance as of April
1, 2021
Changes during
current fiscal year
Provision ofreserve fordeferred gain on
sales of property
Reversal ofreserve fordeferred gain onsale of property
Cash dividends
Net income
Repurchase oftreasury stock
Disposal oftreasury stock
Restricted stockcompensation
Exercise of stockacquisition rights
Transfer fromretained earnings
to additional paidin capital
Net change initems other thanshareholders’equityTotal changes during
current fiscal year
Balance as of March
31, 2022

Commonstock

13,260Capitalreserve

Other
additional
paid-in
capitalLegalreserve

Reserve fordeferred gainon sale ofproperty

Generalreserve

Retainedearnings
carriedforward29,294

-

3,315

4,000

90,0008,520

Treasurystock, at cost

Total
shareholders’equity(8,875)

139,514

1,083(1,083)

-

(149)

149

-

(2,497)2,749(2,497)
2,749(2,089)(2,089)

(0)

0

0

(23)

75

51

(2)

31

28

25

(25)

-

-

-

-

-

933

-

(707)

(1,982)(1,756)

13,26029,294

-

3,315

4,934

90,000

7,813(10,858)

137,758(Millions of yen)
Items

Balance as of April 1,
2021
Changes during current
fiscal year
Provision of reserve fordeferred gain on sales ofproperty
Reversal of reserve fordeferred gain on sale ofproperty
Cash dividends
Net income
Repurchase of treasury
stock
Disposal of treasury
stock
Restricted stockcompensation
Exercise of stockacquisition rights
Transfer from retained
earnings to additional

Stock Acquisition Rights

Total net assets

591

140,106-(2,497)
2,749(2,089)
0
51
(28)

0
-

-9-

paid-in capital
Net change in items
other than shareholders’equityTotal changes during
current fiscal year
Balance as of March 31,
2022

10

10

(18)

(1,774)573

138,332_________(Note)
Amounts less than ¥1 million are rounded down to the nearest million.

- 10 -NOTES TO THE NON-CONSOLIDATED FINANCIAL STATEMENTS(NOTES TO MATTERS RELATED TO SIGNIFICANT ACCOUNTING POLICIES)
1.

Valuation Standards and Method of Valuing Assets
Valuation standards and method of valuing securities
Investments in subsidiaries and affiliated companies are stated at cost based on the moving-averagemethod. Marketable and investment securities are stated at market value determined based on market
prices, on the balance sheet date. Nonmarketable investment securities are stated at cost based on themoving-average method. Net unrealized gain (loss) on available-for-sale securities is reported directlyin net assets. Cost of investment securities sold is determined based on the moving-average method.

2.

Depreciation Method of Fixed Assets(1)

Depreciation method of property, plant and equipment
Depreciation of property, plant and equipment is calculated based on the straight-line method.
Useful lives of major items are as follows:
Buildings and structures
Machinery
Equipment (excluding certain paintings)(2)

2 to 50 years
17 years
3 to 20 years

Amortization method for intangible assets
Amortization of intangible assets is computed by the straight-line method. Internal use ofsoftware is amortized based on an estimated useful life of five years.

3.

Basis of Accounting for Allowances(1)

Allowance for doubtful receivables
In order to reserve for losses on bad debts, allowance for doubtful receivables is stated inamounts considered to be appropriate based on the Company’s past credit loss experience andan evaluation of potential losses in the receivables outstanding.

(2)

Accrued bonuses
In order to reserve bonuses to employees, accrued bonuses are calculated based on the
anticipated amount to be paid.

(3)

Accrued officers’ bonuses
In order to reserve bonuses to officers, accrued officers’ bonuses are calculated based on the
anticipated amount to be paid.

4.

Basis for Recording Revenues and Expenses
Except for interest income and dividend income in accordance with ASBJ Statement No. 10,
Accounting Standard for Financial Instruments, and revenue in accordance with ASBJ Statement No.
13, Accounting Standard for Lease Transactions, the Company recognizes revenue based on thefollowing five steps:
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:

Identify the contracts with customers
Identify the performance obligations of contracts
Determine the transaction price
Allocate the transaction price to the performance obligations in the contract
Recognized revenue when (or as) the entity satisfies a performance obligation- 11 -

The Company primarily provides management guidance services to Wacoal Corp., which are recorded
in operating revenue (other). The performance obligations are satisfied over time and the Company
recognizes revenue evenly throughout the contract period measured based on the amount ofconsideration promised in the contract with the customer. Revenue from sales of the services isrecognized when performance obligations are satisfied, which is upon delivery of services. The
company invoices when the company satisfies the performance obligation and receive cash payment
shortly thereafter.
(NOTES TO CHANGES IN ACCOUNTING POLICIES)(Application of “Accounting Standard for Revenue Recognition”)
The “Accounting Standards for Revenue Recognition” (ASBJ Statement No.29; March 31, 2020) was
adopted for the financial statements from the beginning of the current fiscal year, and revenue isrecognized at the amount expected to be received in exchange for the goods or services when control ofsuch goods or services is transferred to the customer.
The effect of this change in accounting policy is not material.
(Application of “Accounting Standard for Calculation of Fair Value”)
The “Accounting Standards for Fair Value Measurement” (ASBJ Statement No.30; July 4, 2019)(“Accounting Standard for Fair Value Measurement”) was adopted for the financial statements fromthe beginning of the current fiscal year, and the new accounting policies set forth in the AccountingStandard for Fair Value Measurement are applied prospectively in accordance with the transitional
treatment set forth in Paragraph 19 of the Accounting Standard for Fair Value Measurement andParagraph 44-2 of the “Accounting Standards for Financial Instruments” (ASBJ Statement No.10; July4, 2019).
This effect of this change on the financial statements is not material.
(SIGNIFICANT ACCOUNTING ESTIMATE)
The following is a list of item of which amount has been prepared using accounting estimate andrecorded in the consolidated financial statements for the current fiscal year that may have a material
effect on the consolidated financial statements for the next fiscal year.
Valuation of investment security in Wacoal Europe Ltd. ¥17,405 million
Investments in securities whose market value is extremely difficult to measure are recorded at cost. If
the value in substance decreases dramatically, the carrying amount shall be reduced to the value insubstance and the loss shall be accounted for through profit or loss. To measure the value in substance,
our Group used the expected present value of future cash flows and incorporated relevant unobservable
inputs, such as management's internal assumptions about future cash flows and appropriately riskadjusted discount rates.
Such assumptions include fluctuations in business activities, tax rates and risk-adjusted discount rates.
There is a possibility that impairment charges would be recognized if the forecast of business results
deteriorate or the tax rates or risk-adjusted discount rates increase.
Based on the aforementioned impairment assessment, our Group recorded no impairment charges oninvestment security in Wacoal Europe Ltd. in the fiscal year ended March 31, 2022.
(NOTES TO THE NON-CONSOLIDATED BALANCE SHEETS)
1.

Accumulated depreciation of property, plant and equipment:

2.

Receivables from subsidiaries and affiliated companies and payables tosubsidiaries and affiliated companies
Short-term receivable:
Short-term payable:¥35,994 million¥7,592 million¥14,424 million- 12 -

3.

Liabilities for guarantees
The Company provides guarantees for loans to a certain subsidiary fromfinancial institutions.
Wacoal Europe Ltd.:¥227 million

The Company provides guarantees for payables of electronically recordedmonetary claims of a certain subsidiary.
Lecien Corporation:¥42 million(NOTES TO THE NON-CONSOLIDATED STATEMENTS OF INCOME)
Transactions with subsidiaries and affiliated companies
Operating revenue:¥6,161 million

Other operating transactions:¥77 million

Non-operating transactions:¥38 million(NOTES TO THE NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS)
1.

Number of issued shares as of March 31, 2022
Common stock: 65,589,042 shares

2.

Number of treasury stocks as of March 31, 2022
Common stock: 4,130,773 shares

3.

Matters regarding dividends on additional paid-in capital and retained earnings made during the current
fiscal year

Resolution
At the Board of
Directors’Meeting held on
May 14, 2021
At the Board of
Directors’Meeting held on
October 29,
2021
4.

Class of Shares

Aggregate
Amount ofDividends(Millions ofyen)Amount ofDividend per
Share
(Yen)

Record Date

Effective Date

Common Stock

1,248

20.00

March 31, 2021

June 4, 2021

Common Stock

1,249

20.00

September 30, 2021

December 2, 2021

Matters regarding dividends on additional paid-in capital and retained earnings to be made after the endof the current fiscal year

Resolution

Class of
Shares

Source ofDividend

Aggregate
Amount ofDividends(Millions ofyen)

At the Board of
Directors’Meeting heldon May 13,

CommonStockRetained
Earnings

1,843- 13 -

Amount ofDividend per
Share
(Yen)

Record Date

Effective
Date

30.00

March 31,2022

June 6, 2022

2022

- 14 -

5.

Matters concerning stock acquisition rights as of the end of the current fiscal year

Class of shares represented by thestock acquisition rights:
Number of shares represented bystock acquisition rights:
Outstanding number of stockacquisition rights:

Class of shares represented by thestock acquisition rights:
Number of shares represented bystock acquisition rights:
Outstanding number of stockacquisition rights:

Class of shares represented by thestock acquisition rights:
Number of shares represented bystock acquisition rights:
Outstanding number of stockacquisition rights:

Class of shares represented by thestock acquisition rights:
Number of shares represented bystock acquisition rights:
Outstanding number of stockacquisition rights:

Class of shares represented by thestock acquisition rights:
Number of shares represented bystock acquisition rights:
Outstanding number of stockacquisition rights:

First Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 30, 2008

Second Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 30, 2008

Third Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 30, 2009

Fourth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 30, 2009

Common Stock

Common Stock

Common Stock

Common Stock

9,500 shares

2,000 shares

10,000 shares

2,000 shares

19

4

20

4

Fifth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 30, 2010

Sixth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 30, 2010

Seventh Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 29, 2011

Eighth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 29, 2011

Common Stock

Common Stock

Common Stock

Common Stock

10,500 shares

2,000 shares

15,500 shares

2,000 shares

21

4

31

4

Ninth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2012

Tenth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2012

Eleventh Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2013

Twelfth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2013

Common Stock

Common Stock

Common Stock

Common Stock

17,500 shares

1,500 shares

17,000 shares

4,000 shares

35

3

34

8

Thirteenth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2014

Fourteenth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2014

Fifteenth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2015

Sixteenth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2015

Common Stock

Common Stock

Common Stock

Common Stock

15,000 shares

4,500 shares

14,000 shares

3,000 shares

30

9

28

6

Seventeenth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 29, 2016

Eighteenth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 29, 2016

Nineteenth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2017

Twentieth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 31, 2017

Common Stock

Common Stock

Common Stock

Common Stock

21,500 shares

7,500 shares

14,000 shares

4,500 shares

43

15

28

9

- 15 -

Class of shares represented by thestock acquisition rights:
Number of shares represented bystock acquisition rights:
Outstanding number of stockacquisition rights:

Class of shares represented by thestock acquisition rights:
Number of shares represented bystock acquisition rights:
Outstanding number of stockacquisition rights:(Note)

Twenty-first Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 20, 2018

Twenty-second Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
July 20, 2018

Twenty-third Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
June 27, 2019

Twenty-fourth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
June 27, 2019

Common Stock

Common Stock

Common Stock

Common Stock

14,700 shares

5,500 shares

17,200 shares

11,300 shares

147

55

172

113

Twenty-fifth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
June 26, 2020

Twenty-sixth Stock
Acquisition
Rights resolved at
the Board of
Directors’Meeting held on
June 26, 2020

Common Stock

Common Stock

24,500 shares

11,200 shares

245

112

The “number of shares represented by stock acquisition rights” has been adjusted to reflect theshare consolidation pursuant to which two (2) shares were consolidated into one (1) share effective
as of October 1, 2017.

(NOTES TO TAX EFFECT ACCOUNTING)
Breakdown of deferred tax assets and deferred tax liabilities
Deferred tax assets:
Valuation loss on investments in subsidiaries and affiliated companies
Accrued bonuses
Depreciation, amortization and impairment loss
Allowance for doubtful accounts
Other
Subtotal of deferred tax assets
Valuation allowance
Total deferred tax assets:
Deferred tax liabilities:
Reserve for deferred gain on sale of property
OthersTotal deferred tax liabilities:
Net deferred tax liabilities:- 16 -(Millions of yen)
2,839
14
834
1,369
337
5,395
(4,462)
932
2,177
1
2,178
1,245

(NOTES TO RELATED-PARTY TRANSACTIONS)
Subsidiaries

Type

Name ofCompany

Company’s
Interest

Account

Balance asof the Fiscal
Year End(Millions ofyen)

Short-termborrowings
fromsubsidiaries
and affiliatedcompanies

8,390

4

–

–

1,200

–

–

3,329

–

–

359

–

–

Repayment of funds(Note 1)

108

Short-termborrowings
fromsubsidiaries
and affiliatedcompanies

3,110

Payment of interest(Note 1)

2––

Loan (Note 4)285

Short-term
loans
receivable
fromsubsidiaries
and affiliatedcompanies

1,725

Receipt of interest(Note 4)

4––

Repayment of funds(Note 4)71

Short-term
loans
receivable
fromsubsidiaries
and affiliatedcompanies

2,553

Receipt of interest(Note 4)

9––Loan (Note 4)91

Short-term
loans
receivable
fromsubsidiaries
and affiliatedcompanies

2,823

Receipt of interest(Note 4)9––

Relationship withRelated Party

Nature ofTransaction

Borrowing of funds(Note 1)

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

WacoalCorp.

Peach John
Co., Ltd.

WacoalServiceCo., Ltd.

Unenana
Cool Corp.

Ai Co., Ltd.

100%
direct100%
direct100%
direct100%
indirect100%
indirect

Holding of shares;
dual appointments;
managerial guidance;lease of movables andreal estate

Holdings of shares;
dual appointments; andborrowing of funds

Payment of interest(Note 1)
Receipt ofdividends
Lease of movables
and real estate(Note 2)
Fee formanagement
guidance (Note 3)

Holdings of shares;
dual appointments; and
loan

Loan

Dual appointments
and loanTransaction
Amount(Millions of
yen)

4,882

Details and Policy on Determination of Transaction Terms(Note 1)
The terms and conditions of borrowings and interest rates are determined upon consideration ofmarket interest rates.
(Note 2)The price and other terms of transactions are determined through negotiation in view of the market
conditions.
(Note 3)The managerial guidance fees are determined each fiscal year based on negotiation.
(Note 4)
The terms and conditions of loans and interest rates are determined upon consideration of market
interest rates.
(Note 5)The transaction amount does not include consumption taxes, while the balance as of the yearend
includes consumption taxes.
- 17 -

(Note 6)

A total amount of ¥4,471 million in allowance for doubtful accounts is provided for doubtful
accounts for the subsidiaries. Also, we recorded a total of ¥619 million for provision of allowancewith respect to doubtful accounts for subsidiaries and affiliated companies for the current fiscal
year.

(NOTES TO REVENUE RECOGNITION)
Basic Information to Understand Revenues from Contracts with Customers
As described in “4. Basis for Recording Revenues and Expenses” of “(NOTES TO MATTERS RELATED TOSIGNIFICANT ACCOUNTING POLICIES)”.
(NOTES TO PER SHARE INFORMATION)
Net assets per share:
Net income per share:
Diluted net income per share:¥2,241.50¥44.18¥43.99(NOTES TO SIGNIFICANT SUBSEQUENT EVENTS)
Purchase of Treasury Stock
The Board of Directors adopted a resolution at a meeting held on May 13, 2022 regarding matters related topurchase of treasury stock pursuant to the provisions of Paragraph 1, Article 459 of the Companies Act.
1.

Reason for Purchase of Treasury StockTo return profits to the shareholders, improve capital efficiency and implement our capital policy withincreased flexibility tailored to the business environment.

2.

Details of Purchase(i) Type of shares to be purchased:

Common stock of the Company(ii) Total number of shares to be purchased:

5,500,000 shares (at maximum)(iii) Aggregate purchase amount:¥10,000 million (at maximum)(iv) Purchase period:

From June 4, 2022 through March 24, 2023

Cancellation of Treasury Stock
The Board of Directors adopted a resolution at a meeting held on May 13, 2022 regarding matters related tocancellation of treasury stock pursuant to the provisions of Article 178 of the Companies Act.
(i) Type of shares to be cancelled:

Common stock of the Company(ii) Number of shares to be cancelled:

1,089,042 shares(iii) Date of cancellation:

May 23, 2022

- 18 -