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Results Briefing Summary◆ Summary of FY3/22 Consolidated Results
Sales and profits decline on pullback
for face masks and antibacterial products
Consolidated(\ million)

FY3/21
Actual

FY3/22Composition
ratio

ActualYoY

Composition
ratio

ChangeVs. forecast

Pct. Change

Forecast

ChangePct. Change

101,257

100.0%

101,027100.0%- 230- 0.2%

103,400- 2,372- 2.3%

53,67953.0%

53,398

52.9%

- 281

- 0.5%

55,400- 2,001- 3.6%

43,275

42.7%

43,055

42.6%

- 219

- 0.5%

44,200- 1,144- 2.6%Others

4,301

4.2%

4,572

4.5%

270

6.3%

3,800

772

20.3%

Gross profit

30,46030.1%

28,014

27.7%- 2,445- 8.0%

30,300- 2,285- 7.5%

SG&A expenses

20,93720.7%

20,905

20.7%

- 32

- 0.2%

21,300- 394- 1.9%

Operating income

9,522

9.4%

7,109

7.0%

- 2,412- 25.3%9,000- 1,890- 21.0%Ordinary income

9,734

9.6%

7,598

7.5%

- 2,136- 21.9%9,100- 1,501- 16.5%

Net income

6,588

6.5%

5,132

5.1%

- 1,455- 22.1%

6,100- 967- 15.9%

Net sales
Product Development
Model Business
Wholesale
Model BusinessNet sales declined slightly year on year due to a pullback in sales of face masks and antibacterial products
from the high levels registered in the previous fiscal year. Along with the drop in net sales, the grossmargin was pushed down by soaring costs for transportation and raw materials.
Selling, general and administrative expenses were largely flat year on year, with ongoing efficiency gains inlogistics expenses offsetting a modest rise in personnel expenses due to an increase in earnings-linkedperformance pay. Operating income, ordinary income and net income all declined 20% from theirrecord-highs in the previous fiscal year.

◆ Summary of FY3/22 Consolidated Results by Business Segment
Doshisha’s operations are largely divided into two business segments: the Product Development ModelBusiness and the Wholesale Model Business. The Product Development Model Business plans,manufactures and sells original Doshisha products. The Wholesale Model Business is a comprehensive
sales proposal business, mainly focused on selling and planning sales promotions for leading domesticand overseas brands and for products sourced from major manufacturers in Japan. The product range in
the Wholesale Model Business includes famous brand watches, bags and other items, and traditional
mid-year and year-end assorted gift packs prepared by Doshisha using merchandise sourced from leading
domestic manufacturers.

Famous brands recover, but NB processing weak
Product Development
Model Business

Wholesale
Model BusinessFamousbrands

NBprocessing

Others120* Figures in ( ) are composition ratio
Figures in [ ] are year on year change

96.2

100

101.2 [+5.2%]

101.0 [-0.2%]

53.6

53.3

(53.0%)(52.9%)[+14.0%][-0.5%]

80

47.0(48.9%)
60

17.1

14.4(17.8%)(14.3%)[-15.7%]40

45.1
20(46.9%)28.0(29.1%)

15.7(15.6%)[+8.8%]

43.2

28.8

43.0(42.7%)(28.5%)(42.6%)(27.0%)[-4.2%][+2.8%][-0.5%][-5.2%]

27.3

0(¥ billion)

2020/32021/32022/3*Due to a change in internal management approach from 1Q FY3/21, some operations previously classified under the Product Development
Model Business have been transferred to the Wholesale Model Business; segment figures for FY3/20 are shown based on the newapproach.

< Product Development Model Business – Highlights >・ Kitchen accessories> Sales of the Evercook range increased as the brand marked its 10th anniversary.
> Sutto smart frying pans, which can be stored upright in tight kitchen spaces, remained popular,
with cumulative sales topping 200,000 units in its first year since launch.
・ Food products> With consumers spending more time at home, dried fruit, nuts and other healthy food products
registered sales growth.
・ Summer products> Demand was strong in the summer for fans, circulators and other products related to ventilationand energy efficiency.
・ Ventilation demand> Sales of air purifiers and sterilizers/deodorizers declined amid a pullback in ventilation demand
related to the pandemic.

< Wholesale Model Business – Highlights >・ Famous brands> Expanded sales channels supported higher sales of smart watches, jewelry and accessories.
・ Gifts (NB processing)> Demand for delivered gifts continued to increase and sales of courtesy gifts recovered.
> After opening a permanent outlet for T.D. Early, an original Doshisha confectionary brand, in theDaimaru Tokyo department store, sales expanded strongly on the back of pop-up sales eventsin major rail stations and department stores.
・ Health and hygiene products (NB processing)> Sales declined due to a pullback in demand for hygiene products such as face masks andantibacterial products.

◆ Consolidated Forecasts for FY3/23
Targeting ordinary income of ¥8.4 billion in FY3/23,
foundations for ¥10 billion in new medium-term plan
Consolidated(\ million)

FY3/22

49,046

51,98026,171

Full year

YoY

2H

Full year

101,027

51,60056,400108,000

6,972

6.9%

27,22653,39828,10031,00059,100

5,701

10.7%

20,76022,29543,055

21,20022,80044,000944

2.2%

Others

2,115

2,457

4,572

2,300

2,600

4,900

327

7.2%

Gross profit

14,56813,44628,014

14,90015,50030,400

2,385

8.5%

SG&A expenses

10,615

10,28920,905

10,950

11,15022,100

1,194

5.7%

Operating income

3,953

3,156

7,109

3,950

4,350

8,300

1,190

16.7%

Ordinary income

4,155

3,442

7,598

4,000

4,400

8,400

801

10.6%

Net income

2,791

2,340

5,132

2,700

2,900

5,600

467

9.1%

Product Development
Model BusinessWholesale
Model Business

2H

FY3/23

1HNet sales

1HChangePct. Change

We forecast higher sales in the Product Development Model Business supported by the increased
competitiveness of developed products. We also expect growth in gross profit to outpace sales due to thelaunch of more specialist, unique products. Selling, general and administrative expenses relative sales arelikely to be largely unchanged year on year, reflecting continued improvement in logistics costs and otherexpenses. Based on the above, we forecast higher operating income, ordinary income and net income
compared with the previous fiscal year.

◆ New medium-term business plan (FY3/23-25)
On May 9, 2022, we released a new medium-term business plan covering the period from FY3/23 toFY3/25.
*For more details, please click here.
https://www.doshisha.co.jp/dcs/wp-content/uploads/2022/07/22-05-20-2.pdf(English only)
https://www.doshisha.co.jp/dcs/wp-content/uploads/2022/05/22-05-20.pdf (Japanese only)◆ FY3/23 Dividend Policy
Based on our policy of paying a consistent and stable dividend, we plan to pay a full-year FY3/23
dividend of ¥60 per share, including an interim dividend of ¥30, unchanged from the previous fiscalyear. In addition, in accordance with our share buyback announcement on November 19, 2021, weare repurchasing up to 1 million shares (limit of ¥1.9 billion) by end-July 2022.
Along with our objective of paying a consistent and stable dividend, we will work to increase
shareholder value over the medium and long term by implementing the growth strategy, balance
sheet strategy and ESG strategy in our medium-term business plan in order to secure support for ourmanagement philosophy and business model and meet the growth expectations of investors.
(Tokyo, May 2022)