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June 17, 2014

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DOSHISHA CORPORATIONTSE 1stSection

Summary of Business Results
for the Fiscal Year ended March 31, 2014

DOSHISHA CORPORATION (hereinafter DOSHISHA or the Company) conducted its FY3/14
analyst briefing on May 15. A summary of the meeting is provided below.

Summary of FY3/14 Consolidated Business Results
President and COO Masayuki Nomura initiated the meeting with a brief discussion of theCompany’s slogan “building a company that will not fail”. Nomura assumed his post on April 1 andmade assurances the Company will take further steps to enhance corporate value under hisstewardship.
Business results for FY3/14 are provided in Table 1 below. Net sales expanded 6.4% YoY to arecord ¥105.5 billion and were supported by a number of factors. Summer goods were strong owing
to the prolonged heat wave while watches, bags, and other imported items benefited fromheightened demand on improved economic conditions. Consumer purchases were also stimulatedby the hike in consumption taxes.

 【Table 1】 FY3/14 Consolidated Business Results Summary
Consolidated

FY3/13

FY3/14

Ratio toNet Sales

Forecaston Oct. 31

ActualRatio toNet Sales（ \ million）

ActualYoY Chg

Net Sales

99,221100.0%

105,000

105,576

100.0%

6.4%

Product Development Model

51,56952.0%

53,70054,793

51.9%

6.3%

Wholesale Model

44,71545.1%

47,86047,220

44.7%

5.6%

Others

2,937

3.0%

3,440

3,562

3.4%

21.3%

Gross Profit

24,12924.3%

24,90024,460

23.2%

1.4%

SG&A Expenses

17,36817.5%

17,60017,176

16.3%

-1.1%

Operating Income

6,761

6.8%

7,300

7,2846.9%

7.7%

Ordinary Income

7,395

7.5%

7,400

7,510

7.1%

1.6%

Net Income

4,491

4.5%

4,400

4,421

4.2%

-1.6%

Note: All tables and graphs compiled by Trias Corporation based on the Company's financial data

Profits for the Product Development Model area suffered as the weaker yen led to higher overseas
procurement costs. Sales of autumn and winter goods were adversely affected by poor weather
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2014 Trias Corporation All rights reserved.

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TAKUMA-PathfindersAn investment research platform
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June 17, 2014

conditions including the unusually long summer, and gross profit margin fell 1.1 percentage points.
Nevertheless, gross profit climbed 1.4% YoY to ¥24.4 billion on the increase in net sales. Operating
income expanded 7.7% to ¥7.2 billion as lower logistics-related costs led to a decline in SG&A
expenses, and ordinary income increased 1.6% to ¥7.5 billion. However, valuation losses at
subsidiaries and other extraordinary items totaling some ¥219 million weighed on net income, whichfell 1.6% to ¥4.4 billion. Net sales cleared the Company’s revised targets of last October 31, with aslight shortfall for the Wholesale Model Business offset by gains in the Product Development ModelBusiness.

Trends by Business Segment
DOSHISHA has two major lines of business: the Product Development Model Business and theWholesale Model Business. The Product Development Model Business consists of the design,
production, and sale of the Company’s original products, while the Wholesale Model Businessconcentrates on sourcing and marketing well-known domestic and overseas brands as well as
select products of major Japanese makers. This segment relies on NB (National Brand) Processing
to offer products for the traditional Japanese mid-and year-end gift giving seasons that are designedby combining well-known branded goods such as watches and handbags with products sourced
from large-scale domestic makers.

 【Graph 1】Trend of FY3/14 Sales by Business Model (¥100 million)
Product Development

Wholesale (NB Processing)

Wholesale (Premier Brand)

Others

2420209
196
439

OthersWholesale (Premier Brand)
Wholesale (NB Processing)
Product Development

22209

208
246
210
492

546

35
29
192
254

515

206

265

547

FY3/10FY3/11

FY3/12

FY3/13

FY3/1420
209
196439

22208
210
492

24
209
246
546

29192
25451535206265547

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2014 Trias Corporation All rights reserved.

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Product Development Model Business:

June 17, 2014

¥54,793 million (+6.3% YoY)

Sales of “Reasonable and High-quality” summer products including LED light bulbs, ceiling lights,
stainless steel tumblers, DC fans, as well as steel racks were all firm. For A&V-related products,
small and mid-sized TVs for use as second TVs in child rooms and other locations were strong, aswere VHS players targeted at seniors. Multi-color steel racks used for furniture and storage also
sold well. Standard and food-related products, however, suffered as yen weakness led to higher
procurement costs. Apparel products were also soft, as sales momentum failed to take hold owing to
the hot summer.

Wholesale Model Business:¥47, 220 million (+5.6% YoY)NB Processing business for both popular brands and gifts led to sales gains for the segment. The
main driver was the introduction this year of home delivery and event gifts targeting holidays such as
Father’s Day and Mother’s Day. Premier Brand business moved well owing to the recovery ofdomestic economic conditions, which stimulated demand for luxury items.

Other and Affiliate Companies:¥3,562 million (+21.3% YoY)

Sales Trends by Channel
All of the segment’s major operations reported higher sales. Electronic merchandisers benefited
from strong demand for LED lighting, DC fans, and other household electronic products andbranded goods were firm on the pick-up in economic activity. Branded products also moved well in
discount stores, while double digit increases were reported by direct and internet marketingbusinesses.

FY3/15 Consolidated Business Forecasts and Key Initiatives
Financial forecasts for FY3/15 shown in Table 2 below assume implementation of the strategic
initiatives discussed below. A commemorative dividend of ¥3 per share is also planned for payment
with the ordinary half-year dividend of ¥15 per share, taking the total annual dividend payment to¥36 per share.

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2014 Trias Corporation All rights reserved.

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June 17, 2014

 【Table 2】 FY3/15 Consolidated Business Forecasts
Consolidated（ \ million）

FY3/14 (Actual)

FY3/15 (Forecasts)

1H

2H

2H

Full Year

YoY Chg

49,97855,597Full Year105,576

1HNet Sales

50,60059,400110,000

4.2%

Product Development Model

25,06429,72854,79325,30032,20057,5004.9%

Wholesale Model

23,081

24,13947,22023,10025,40048,500

2.7%

Others

1,832

1,729

3,562

2,200

1,800

4,000

12.3%

Gross Profit

6.7%

11,657

12,80324,46012,15013,95026,100

SG&A Expenses

8,634

8,541

17,176

8,550

9,050

17,6002.5%

Operating Income

3,022

4,261

7,284

3,600

4,9008,500

16.7%

Ordinary Income

3,078

4,431

7,510

3,600

4,900

8,500

13.2%

Net Income

1,780

2,640

4,421

2,200

3,000

5,200

17.6%

Note: FY3/15 forecasts announced on May 15, 2014

Strategic Initiatives for FY3/15
Product Strategy①

Further strengthen Niche NO.1 strategy

Develop and strengthen products to secure top share of niche markets that are difficult for
manufacturers to enter, and compete on our own ideas and creativity. DOSHISHA has alreadyestablished a leading position in the markets for steel racks, snow cone machines, andsmall-to-mid-sized TVs.
②Product development reflecting trends and customer needs

DOSHISHA has developed a popular line of hot and cold stainless steel tumblers and is designing a
specialized tumbler for the fast-growing convenience store cafe market. The Company has typicallyrelied on GMS and home center outlets and has been relatively weak with convenience stores, butwill now be able to develop this new channel both directly and indirectly. In this way, the Company
aims to further expand sales by capturing market trends through the launch of hit products.
③Making products with “affordable quality/authentic taste”

DOSHISHA believes consumer trends over the past several years reflect preference for theconcepts of “luxurious feel”, “authenticity”, and “better products”. During this period, it hasdeveloped products with a high sense of quality and authenticity at affordable prices that take fulladvantage of function and style. This summer, the Company has focused on the dessert theme byadding functionality to snow cone makers used by top chefs and have developed sweet makers andjuice mixers that can readily produce high-quality cafe-style products at an affordable price.

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2014 Trias Corporation All rights reserved.

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④ Differentiation using in-house resources
DOSHISHA sources a variety of products from 1,500 manufacturers, has 20 marketing divisions
handling a range of food, clothes, and household items, and more than 4,700 clients. The Company
plans to utilize its considerable procurement and marketing abilities to differentiate its productoffering by collaborating with famous brands and characters such as Hello Kitty, Edwin, and CocaCola.

Sales Strategy① Expand in-store share through proposing plans for the entire sales floor
DOSHISHA’s strengths include its 4,700 client marketing infrastructure and the wide range ofcategories offered, but its products are still not able to fill an entire sales floor. To expand sales andprofits further, the Company aims to increase the amount and share it has with each client by“strengthening OEM initiatives by utilizing its development abilities” and “not relying on single
products, but making proposals that encompass the entire sales floor through related categories”.
② Developing new markets and customers
DOSHISHA believes it is possible to “sell watches to a vegetable store”. This simple sales policy isbased on the idea that new products can be sold by crossing traditional industry selling lines. Actual
examples include the sale of high-end branded goods through mass merchandisers, as well as
selling gifts at home centers and public bathhouses. Each division in DOSHISHA carries out new
product development and efforts are constantly made to roll-out successful products and categories
throughout the Company.

Expense strategies
DOSHISHA continues to move ahead with review of its logistics infrastructure to boost groupsynergies as well as its “Cost Reduction Project”. Restructuring of distribution activities has takenplace against a dramatic increase in shipping costs for carriers driven by higher gasoline prices. The
Company made cuts in its distribution-related subsidiaries and logistics infrastructure and set up
new distribution centers to ensure shipping takes places from the most efficient location possible.
Daily shipment volume has expanded by improving the rate of EOS (an inter-corporate onlineordering system) direct orders. Efforts have also been made to aggregate shipment units, achieve
better inter-departmental cooperation, and make better use of consolidated and charter flights bylocal shipping companies. As a result of these measures, SG&A expenses fell from 17.5% of net
sales in FY3/13 to 16.3% in FY3/14. The Company plans to consolidate its outsourced warehouseservice and reduce SG&A expenses to only 16% of sales during FY3/15.
This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2014 Trias Corporation All rights reserved.

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TAKUMA-PathfindersAn investment research platform
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June 17, 2014

 Key Financial Data (Consolidated)
No. of Shares Issued

Mar. 2014

37,375,636

Total Assets (\mn)

Mar. 2014

64,975

No. of Treasury Stock

Mar. 2014

84,376

Shareholders' Equity (\mn)

Mar. 2014

52,512Market Value (\mn)

June 16, 2014

63,800Interest-Bearing Debt (\mn)

Mar. 2014

2,703

BPS (\)

Mar. 2014

1,319.41

Equity Ratio (%)

Mar. 2014

80.8

ROE (%)

Mar. 2014

8.7

Ratio of Interest-Bearing Debt (%)

Mar. 2014

5.1

ROA (%)

Mar. 2014

7.0

Free Cash Flows (\mn)

Mar. 2014

3,776

PER (times）

FY3/15 fcst.

12.2

ROE=Current Net Income÷Average Shareholders' Equity

PCFR(times)

Mar. 2014

12.9

ROA=Current Net Income÷Average Total Assets

PBR (times)

Mar. 2014

1.3

PCFR=Maket Value÷(Current Net Income+Depreciation)

Share Price (\)

June 16, 2014

1,707

Unit Share (shs)June 16, 2014

100

Average Daily Volume (shs)June 16, 2014

71,749Average Daily Volume=Ave. Daily Volume for the last 12 m/s
Interest-Bearing Debt Ratio=IBD÷Shareholders' Equity
Free Cash Flows=Operating CF+Investment CF

 Financial Results (Consolidated)
Consolidated(\million）

Net Sales

Operating
IncomeOrdinary
IncomeNet Income

EPS (\)DPS (\)

86,629

7,701

7,593

4,293

118.2727.50

FY3/11

93,494

7,698

7,614

4,395

121.1027.50

FY3/12

102,619

8,866

8,917

5,001

137.4630.00

FY3/1399,221

6,761

7,395

4,491

120.6730.00

FY3/14

105,576

7,284

7,510

4,421

118.5730.00

1H FY3/15 fcst.

50,600

3,600

3,600

2,200

59.00

18.00

FY3/15 fcst.

110,000

8,500

8,500

5,200

139.4436.00

FY3/10Note 1:

FY3/15 forecasts announced on May 8, 2014

Note 2:The Company conducted a 2 for 1 split of common shares on April 1, 2013.
The calculations of "EPS" and "DPS" are based on the assumption that the 2 for 1 stock split was conducted at the beginning of FY3/10.

Note 3:

The Company plans to pay a dividend of \18 per share for the 1H of FY3/15, consisting of the ordinary half-year dividend of \15 andan additional commemorative dividend of \3, taking the total annual dividend payment to \36 per share.

 Stock Price Charts and RSI（Yen）
2,000

Share Price (Close)

1 Month Moving Average

3 Months Moving Average

RSI 14 Days Moving Average (RHC)

1,500

1,000

RSI50070300Source: Prepared by Trias Corp. with Bloomberg data.
Note:RSI, Relative Strength Index, is the index representing the ratio of overbought or oversold share prices.
In general, over 70 in RSI shows overbought share price range, while below 30 shows oversold share price range.
RSI=averaged share price appreciation for N days ÷(averaged share price appreciation for N days
+averaged share price decline for N days) x100

This Memo is for reference purposes only and is not intended as a solicitation for investment. The contents contained herein areprepared based on reliable
information that already exists in the public domain. The Company, however, does not guarantee complete accuracy. Any pinionrinformation contatined in theMemo is relevant as of the day of the Information Meeting and/or Company Visit, although the views and/or facts may be altered without prior notification.
Final investment decisions shall be made by investors themselves based solely on their own judgment and responsivility.
Copyright © 2014 Trias Corporation All rights reserved.

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