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Results Briefing Summary
Summary of FY3/23 Consolidated Results

Net income in line with forecast released on May 9, 2022
Consolidated(\ million)

FY3/22
ActualYoY

FY3/22Composition
ratio

ActualComposition
ratio

ChangeVs. forecast

Pct. Change

Forecast

ChangePct. Change

101,027100.0%

105,709100.0%

4,682

4.6%

108,000- 2,290- 2.1%

53,39852.9%

54,777

51.8%

1,378

2.6%

59,100- 4,322- 7.3%

43,05542.6%

46,654

44.1%

3,598

8.4%

44,000

2,654

6.0%

Others

4,572

4.5%

4,2784.0%- 294- 6.4%

4,900

- 621

- 12.7%Gross profit

28,01427.7%

28,666

27.1%

651

2.3%

30,400- 1,733- 5.7%

SG&A expenses

20,905

20.7%

20,613

19.5%

- 291

- 1.4%

22,100- 1,486- 6.7%

Operating income

7,109

7.0%

8,052

7.6%

942

13.3%

8,300

- 247

- 3.0%

Ordinary income

7,598

7.5%

8,342

7.9%

744

9.8%

8,400

- 57

- 0.7%Net income

5,132

5.1%

5,621

5.3%

488

9.5%

5,600

210.4%Net sales
Product Development
Model Business
Wholesale
Model BusinessDespite an impact in 1H FY3/23 from soaring raw material prices and the weak yen, full-year net sales
increased 4.6% year on year on the back of higher selling prices after price negotiations with customers.
As a result, gross profit rose 2.3% year on year, and operating income and ordinary income also
increased.

Summary of FY3/23 Consolidated Results by Business Segment
Doshisha’s operations are largely divided into two business segments: the Product Development Model
Business 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 domestic
and 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.

Sales rise in both Product Development Model andWholesale Model businesses
Product Development
Model Business

140

Wholesale
Model BusinessFamousbrandsNB
processing

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

120

101.2

100

101.0

[-0.2%]

105.7

54.7

53.3

80

[+4.6%]

53.6(52.9%)(53.0%)[-0.5%](51.8%)[+2.6%]

60

20(42.7%)

28.8(28.5%)(15.2%)[+2.0%](15.6%)[+8.8%](14.3%)

43.2

16.0

15.7

14.4

40

43.0

27.3

46.6

(42.6%)[-0.5%](27.0%)(44.1%)[+8.4%][-5.2%]

30.6(29.0%)[+12.0%]0(¥ billion)

2021/32022/32023/3【Product Development Model Business – Highlights】
・Food products (confectionery)> Sales were strong for baked and dried sweet potatoes, gummies, peanuts and other snack
confectioneries, and for ingredients used to make confectionery such as chocolate pens.

・

Audiovisual> ORION Android Smart TV – Tunerless models, designed for watching streaming services, registeredsolid sales.
*Product homepage URL https://doshisha-orion.com/tless-smarttv/

・(Japanese only)Home appliances> Sales of winter home appliances such as humidifiers and heaters slowed due to an increased
consumer focus on saving energy amid soaring electricity costs.

【Wholesale Model Business – Highlights】
・Famous brands> Sales of smart watches were strong and demand for business and travel bags recovered.
> Sales of beauty lotions and UV spray increased, led by rising sales to markets in Asia.
> The STANLEY brand, for which Doshisha is the distributor, recorded firm sales through the official
online site and at retail stores.

・Gifts (NB processing)> Sales expanded in the mid-year and year-end gift business, where Doshisha handles all processesfor customers on a fully outsourced basis – from catalog production to retail space design andorder processing.

・Amusement (NB processing)> Sales were firm for character-based toy products supplied to game arcades and other amusement
facilities.

Consolidated Forecasts for FY3/24

Targeting ordinary income of ¥9 billion in FY3/24,¥10 billion in medium-term business plan
Consolidated(\ million)

FY3/24

FY3/23
1H

2H

105,70953,50057,500111,000

5,290

5.0%

28,55354,777

27,40031,60059,000

4,222

7.7%

23,41423,23946,65424,00024,00048,000

1,345

2.9%

Others

2,766

1,512

4,278

2,100

1,900

4,000

- 278

- 6.5%

Gross profit

14,231

14,434

28,666

15,100

16,10031,200

2,533

8.8%

SG&A expenses

10,392

10,221

20,613

11,02011,18022,200

1,586

7.7%

Operating income

3,839

4,213

8,052

4,080

4,920

9,000

947

11.8%

Ordinary income

3,954

4,387

8,342

4,080

4,920

9,000

657

7.9%

Net income

2,641

2,979

5,621

2,750

3,350

6,100

478

8.5%

Net sales
Product Development
Model Business
Wholesale
Model Business

1H2H

52,40453,30526,223Full year

YoY
Full yearChange

Pct. Change

We forecast higher net sales year on year, led by the Product Development Model Business. We also
expect growth in gross profit to outpace sales due to the launch of more specialist, unique products. Basedon that, we forecast increases for operating income, ordinary income and net income compared with theprevious fiscal year.

Medium-term Business Plan (FY3/23-25) Progress Update
On May 9, 2022, we released a new medium-term business plan covering the period from FY3/23 toFY3/25.
*Please click on the link below for more details.
https://www.doshisha.co.jp/dcs/wp-content/uploads/2022/07/22-05-20-2.pdf

＞＞Growth Strategy【 Product DevelopmentOpportunities】

ModelBusiness:

Capitalizingon

One of the most important formats in this business is single-price retailers, such as ¥100 shops.
Leveraging the extensive knowledge and expertise of our roughly 2,100 suppliers – one of Doshisha’s
business assets – we have expanded the range of products we offer, from ingredients for making
confectionary, to wrapping materials and educational toys. This has driven a 25% increase in net sales
since FY3/19.

【Product Development Model Business: Leveraging Our Strengths(1)】
One example of our products developed in-house is the EVERCOOK*1 range of non-stick, easy-to-store
frying pans, embodying our mission to deliver "unique and exciting" moments for everyday life from thestandpoint of consumers. In the 12 years since the brand was launched, EVERCOOK has become along-selling product with cumulative sales of more than 6 million units. Another example is our range offree-standing, compact Sutto*2 frying pans, which are based on the design concept of making effective useof limited kitchen space. By expanding the product range, including launching related products, we haveincreased net sales by 171% since FY3/19.
*1 EVERCOOK homepage URL

https://www.evercook-kitchen.com/*2 Sutto homepage URL

https://www.do-cooking.com/sutto/【Wholesale Model Business (NB gift processing): Leveraging Our
Strengths (2)】We are developing and enhancing our original confectionary brands, leveraging the strengths Doshisha
has built up in mid-year and year-end gifts, such as business relationships with suppliers across a widerange of product categories and in-house product development capabilities. In addition to further actively
developing the existing T.D. Early brand, we launched a new confectionary brand called OIMO MERCI inFebruary 2023. The brand is proving to be very popular at two of Japan’s leading department stores,
Daimaru Tokyo and Hankyu Umeda. We plan to further strengthen and grow the OIMO MERCI lineup
going forward.

Strengths x Opportunities: Original confectionary brands
as a new source of earnings【Strengths】> Suppliers in a wide range of product categories> Consumer focused
Product planning, marketing, sales promotioncapabilities> Expert human resources in product development,etc【Opportunities】【T.D. Early】
Sold at Daimaru Tokyo / Hankyu Umeda【OIMO MERCI】
Sold at Daimaru Tokyo / Hankyu Umeda> Changes in consumption patterns due to the
COVID-19 pandemic→ "Little luxuries" and "treats"

Dynamically reshuffle the product portfolio to target markets with growth potential＞＞Balance Sheet Strategy【Returning Profits to Shareholders: Increasing the Dividend】
Taking into account conditions in the business environment and a comprehensive range of other factors,
Doshisha has decided to pay a year-end dividend of ¥35 per share for FY3/23, an increase of ¥5 from thedivided forecast, bringing the annual dividend to ¥65 per share. For FY3/24, Doshisha plans to pay anannual dividend of ¥70 per share, comprising an interim dividend of ¥35 and a year-end dividend of ¥35.

Earnings per share

＞＞ESG Strategy < Helping to Create a Sustainable Society >【Five Materialities】
We have selected five key issues material to Doshisha (Five Materialities), including "helping people leadricher lives by providing ‘unique and exciting’ moments." By implementing measures to realize the fivematerialities, we aim to help create a sustainable society.
Materialities

Help people lead richer

Key initiatives

ＳＤＧｓ

1 lives by providing "unique■Reduce environmental impact through productand exciting" moments
development based on the principles of "Reduce,""Reuse" and "Recycle"■Operate an IS0 14001 environmental management
systemPromote environmentally ■Promote the use of clean energy and reduce2
greenhouse gas (GHG) emissions
friendly business activities■Reduce the environmental impact of our businessactivities

Become a company that
3 coexists with andcontributes to society

ＥＳＧ■Operate an ISO 9001 quality management systemand ensure rigorous quality control

E・SE■Contribute to society through dialogue withstakeholders

S・Ｇ■Respect human rights across the supply chain■Develop and train human resources

Create a passionate,motivating corporate
4
culture and develop
human resources■Promote diversity

S■Work-style reforms■Health & productivity management■Compliance

Improve corporate
5
governanceＧ■Reinforce risk management*Please visit the Sustainability section (Japanese only) on our corporate website for information about ESGInitiatives, Doshisha’s Sustainability Policy, Sustainability Promotion Framework, Five Materialities, andInformation Disclosure in Line with TCFD Recommendations.
Sustainability section URL https://www.doshisha.co.jp/lp/sustainability/(Japanese only)

By implementing the Growth Strategy, Balance Sheet Strategy and ESG Strategy, and measures to"enhance shareholder value over the medium to long term," we aim to create a passionate, resilientcompany that has a positive impact on society.
(May 2023)