TAKUMA-PathfindersAn investment research platform
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DOSHISHA CORPORATIONTSE 1stSectionA Ｓummary of the FY3/11 Business Results Meeting

The following is a summary of the FY3/11 Business Results Meeting held by DOSHISHACORPORATION, hereinafter DOSHISHA or the Company, on May 18, 2011.

Summary of FY03/11 Consolidated Business Results
As can be seen in Table 1, consolidated net sales exceeded the Company’s forecast issued on
November 17, 2010, but operating income dipped below the previous term’s figure as well as theforecast due to a decline in its gross margin rate. The decline resulted from a sales surge in AV
related products in October-November 2010, which pushed down the gross margin rate of 25.9%
recorded in 2H of FY3/10 to 24.1% in the 2H of FY3/11. Moreover, because DOSHISHA procured
fixed assets related to its new Tokyo head office in November 2010, it led to an acquisition tax of ¥87
million and thus drove SG&A expenses higher. As for net sales recording a year-on-year growth of
7.9%, the increase was driven by the development- and wholesale-type NB (National Brand)
processed products.

【Table 1】 Consolidated Business Results Summary

Consolidated（\ million）

FY3/10
ActualComposition
Ratio

FY3/11
Forecast
on Nov.17

ActualComposition
Ratio

Net Sales
100.0%
100.0%
86,62991,00093,494
Product Development Model
50.7%
52.7%
43,90045,11949,281Wholesale Model
46.9%
44.9%
40,63843,59641,991
NB Processing
22.7%
22.6%
19,67021,098
Famous Brand
24.2%
22.3%
20,967
20,892Others
2.4%
2.4%
2,091
2,285
2,221
Gross Proft
25.7%
24.7%
22,23323,374
23,129
SG&A Expenses
16.8%
16.5%
14,532
15,374
15,431
Operating Income
8.9%
8.2%
7,701
8,000
7,698
Ordinary Income
8.8%
8.1%
7,593
8,000
7,614
Net Sales
5.0%
4.7%
4,293
4,650
4,395
Note: All tables prepared by Trias Corp. with the data disclosed by DOSHISHA CORPORATION.

YoY chg
7.9%
12.3%
3.3%
7.3%
-0.4%
6.2%
4.0%
6.2%
0.0%
0.3%
2.4%

The development-type business in which DOSHISHA develops its own products performed well,particularly sales of 16-32 inch LCD televisions, buoyed by eco-point incentive program and thetransition to terrestrial digital broadcasting from July 2011. While these TV units were developed incollaboration with a partner-manufacturer, the large electronics discount retailers have comeThis 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 the
Memo 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 © 2011 Trias Corporation. All rights reserved.

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TAKUMA-PathfindersAn investment research platform
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appreciate not only their reasonable pricing versus national brands, but also the fact that theCompany has established its own repair center and after-service system, as well as a dependable
quality control regime. The Company also reports successful product development that focuses ondesign, functionality, location of use and concept. Sales of mug bottles, pressure cookers and home
appliances to make confectionery have also performed well, as has a beer-like alcoholic drink(“third-type beer”) due to the hot summer last year.
One niche-market success that DOSHISHA has stepped up its marketing is wine that sells for 398
yen, the lowest retail price for any wine that is being sold at home improvement centers and discountliquor stores. Because Beaujolais Nouveau has sold well at large general supermarkets and liquor
stores in general, DOSHISHA’s Virage has become the third bestselling Beaujolais Nouveau importin Japan. In food products, the Company is targeting niche markets and, as a result, sales of pickled
umeboshi plums and Japanese sake have grown, while reinforcing development of a “100 million
yen for a single breed” product. On the other hand, LED lights and low-priced cosmetic products
failed to reach the forecast targets.
In DOSHISHA’s wholesale operations, various types of gifts—from highly priced to greatly
discounted, memorial and hospitality presents—continued to sell well from the previous term.
Moreover, the profitability of premier brand watches, shoes and jewelry remained robust. However,
Le Creuset and other imported sundries such as Western pottery failed to reach the projected
targets.
As for developing new sales channels and new products, the rate of developing new channels
declined from 5.4% in fiscal 2009 to 4.8% in fiscal 2010. A major factor that influenced this outcome
was the Middle series humidifier, which sold well in 2009. On the other hand, the rate of developing
new products grew from 56.9% to 57.3% in the same period, indicating that new productdevelopment, the lifeline of DOSHISHA, remains alive and well.
A special notice in the consolidated balance sheet was the acquisition of a new Tokyo head officebuilding, which cost ¥4.6 billion, including tax. Cash declined by ¥2.1 billion, while corporate bonds
increased by ¥2.5 billion and fixed assets rose by ¥4.3 billion.

FY03/12 Consolidated Forecasts and Priority Initiatives
Table 2 features DOSHISHA’s FY3/12 consolidated forecasts. Among the priority initiatives theCompany has adopted are corporate responses to the post-March 11 disaster rebuilding effort,
fortifying its marketing/sales capabilities by business model, and expansion of overseas sales.

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 the
Memo 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 © 2011 Trias Corporation. All rights reserved.

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TAKUMA-PathfindersAn investment research platform
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In order to meet demand created by the post-disaster recovery in Japan, the Company will be
putting greater effort into developing and marketing products with the focus on energy conservation,
disaster prevention and combating the summer heat, in response to a dramatic change in consumer
needs. In addition, DOSHISHA will step up the procurement and supply of a broad range of daily
essentials, such as basic commodities and home electronics products. Because the Company has
a network of 1,500 suppliers at home and abroad, it intends to make maximum use of this network toprovide customers “what is in demand now.”【Table 2】 FY03/12 Consolidated Forecast

Consolidated（\ million）

1H

FY3/11 (Actual)
2H
Full YearNet Sales
41,71851,776
Product Development Model
20,51928,762Wholesale Model
20,196
21,795
Others
1,003
1,218
Gross Profit
10,634
12,495
SG&A Expenses
7,555
7,876
Operating Income
3,079
4,619
Ordinary Income
3,041
4,573
Net Income
1,768
2,627
Note: FY3/12 forecasts announced May 18, 2011

93,49449,281
41,991
2,221
23,12915,431
7,698
7,614
4,395

1H

44,60022,50021,1001,000
11,200
8,000
3,200
3,200
1,900

FY3/12 (Forecast)
2H
Full Year53,40029,20022,9501,250
13,200
8,200
5,000
5,000
2,900

98,00051,70044,0502,250
24,40016,200
8,200
8,200
4,800

YoY chg
4.8%
4.9%
4.9%
1.3%
5.5%
5.0%
6.5%
7.7%
9.2%

As it had in fiscal 2010, sales expansion initiatives in DOSHISHA’s product development operations
will center on expanding market share for its LCD TVs. Based on its niche market strategy, theCompany will focus on developing TV units that can be installed in vehicles, cellular phones with
“one-segment” TV capability, TVs with external HDD recording, and other variants. As for the
popular mug bottle, DOSHISHA has begun to make the product on its own from March, thus
reducing costs in a bid to fuel further sales. The Company will be reinforcing sales of products thathave been developed with a clear conceptual and thematic basis targeting “savings, health andhealing.” As for brand sales, the Company will be strengthening its lineup of the HALEIWA brandfrom Hawaii.
In its wholesale field of operations, DOSHISHA will work to sell assorted gift packages of beer for the
first time. At the same time, demand for affordable, middle-tier brand products, or so-called “casualbrands,” is growing. The Company thus aims to expand sales of such brands as DIESEL and
SECTOR by incorporating a newly created marketing channel and upgraded sales promotion tools.
As for overseas sales, DOSHISHA began making active forays from fiscal 2010 and is now targeting
markets in Europe, China and Korea. Although sales to foreign countries amounted to just around¥200 million in the previous year, the Company is working to increase that to ¥500 million in thisThis 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 the
Memo 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 © 2011 Trias Corporation. All rights reserved.

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TAKUMA-PathfindersAn investment research platform
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term and ¥1 billion at the earliest possible opportunity.
While Table 3 features the main goods from DOSHISHA’s new lineup of products, the core focus ofits operations will be the following: To procure “what is in demand now” on a timely basis; to plan anddevelop attractive products featuring novel designs and superior functionality; and to provide thesegoods at competitive prices. The Company has been working to improve its product design
capabilities through collaborations with various industrial design schools, including the Tokyo-based
Kuwasawa Design School, and expects the move to establish new regimes will accelerate in the
future.

【Table 3】 Select Goods from FY03/12 Product Lineup

Net Sales

FY3/12

FY3/11
Fcst.

ChangevsFY3/11

Product Development Operations 49,200

51,700

2,400

700

1,500

800

Chilled Products

-

-

500

Third-Type Beer

-

-

300

Steel Racks

-

-

300

Digital Signage TV

-

500

-

“Smart Slim Bottle” Mugs

-

-

300

400

700

300

-

300

-

41,90044,0002,000

Casual Brands

-

-

400

Gifts (All Categories)

-

-

1,500

Gifts (Assorted Beer Pacage)

-

400

-

（\ million）

Actual

LED Lighting

HALEIWA Brand from Hawaii
New Character-Brand Product“ONE-PIECE”
Wholesale Operations

Remarks

Expanding lineup of high quality,
very low-price units
Production can’t keep up withdemand; being met throughinventory only
Tie-up with Korea’s largest
breweryEntered recovery phase since
April
Offering value-added products for
growth markets
Sales of student designed
product to start
Incorporated to bolster mug
bottle lineup
Niche products include camping
equipment and bicycles
Upgraded sales promotion todrive sales growthProfitability secured throughproduct mix

As an example of upgrading its product functionality capabilities, DOSHISHA will be making a major
push into the market for electric fans this year. It plans to roll out two types of units: the first is basedon its design value and the second, a compact fan, is based on its ability to run on three different
methods of power supply (either standard outlets, batteries or via USB cable). As for LED lighting,a product lineup that underperformed last year as a result of intensifying price competition, theCompany has adopted guidelines set by the Japan Electric Lamp Manufacturers Association(JELMA) and established an operating regime that can deliver profits from LED lighting units that will

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 the
Memo 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 © 2011 Trias Corporation. All rights reserved.

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TAKUMA-PathfindersAn investment research platform
to support a Japanese Economic RenaissanceMay 31, 2011

constantly be sold at retail outlets at prices of only 1,000 yen. In this term, DOSHISHA will beconcentrating resources to drive further sales in both the personal and corporate LED markets. The
Company will begin offering a LED bulb capable of three energy savings settings, LED wake-up unit
and clip-on LED lamp that can be run on batteries. It will also sell fluorescent tube-type LED lamps
that do not require replacement modifications to corporate customers.

Q&A Session
Q1: Has the drop-off in consumer spending since the March 11 disaster begun to improve?
A1: Sales in April hit double digits versus that same month last year, a trend that is continuing in May
and beyond. Our biggest retailer clients tell us that the situation at their outlets has improved
dramatically as well.
Q2: While your gross margin rate fell from 25.5% in 1H of FY3/11 to 24.1% in 2H, whatindications are there to expect improvement in this area for this term?
A2: The gross margin rate projected for FY3/12 is 24.9%. The factor behind this projection isa modest decline in the sales ratio of our LCD TV units, which had received a boost from thegovernment’s eco-point incentive program in the previous term. Sales for the TV units are expected
to fall by ¥1.9 billion. At the same time, however, sales of products related to the post-March 11
recovery is expected to reach ¥2.2 billion in the first half, and we’ve also changed our sales
mix—these factors lead us to believe that the gross margin will improve. In addition, seasonal
products traditionally generate disposal costs at the end of their sales seasons, and this works toadversely impact gross margins as well. But this year, we believe disposal costs will be minimal dueto the long-term forecast for a hotter-than-average summer and demand for energy conservation
products.
Q3: Will the operating income margin for LED lighting this year expected to exceed or fall
below the same margin for DOSHISHA as a whole?
A3: As for now, it does not appear that the operating income margin for LED lighting will reach the
8.3% rate for the entire Company. But because we’ve set up a framework through which we cansqueeze a profit from our LED lamps even if they are sold at just 1,000 yen, we believe our profit
margin from the product is viable and appropriate. It should be noted that companies are showing
strong in interest in our LED products for use in their warehouses and offices. We are currently in theprocess of beefing up our marketing/sales arm for corporate sales by hiring experienced sales staff.

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 the
Memo 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 © 2011 Trias Corporation. All rights reserved.

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TAKUMA-PathfindersAn investment research platform
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Q4: Given that sales to volume electronics discounters are on the upswing, what is yourprofit ratio in this area?
A4: Take our sales composition to one of our larger clients, a major electronics discounter: We not
only provide the retailer with LCD TV units, but also shaved ice machines, electric fans, crockery,food products and an assortment of brand goods—meaning that even if TV sales should fall, that will
not represent a significant decline in profitability. While it’s difficult to calculate the exact ratio, we
can say our profit ratio to these large retailers remains at about the same level as that posted in thefirst half.
Q5: What are you doing in terms of Web-based sales?
A5: We believe our effort there requires reinforcement. In 1H of FY3/11, for example, the ratio of
web sales actually fell. The reason for this was that sales on the web that was generated throughone of our larger clients took a step back. We are now looking to beef up our Internet marketing byfocusing on “casual brand” goods, as well as on storage products. It should be noted that a portionof our products that are sold online can’t be posted as such because they are incorporated into ouroverall sales to major supermarkets, which sell our products on their websites.
Q6: As stated earlier, DOSHISHA is looking at M&A in order to develop opportunities forbusiness synergies in certain domains. What are the domains that you are looking at?
A6: While we are not entertaining any specific M&A case at this moment, I can tell you that people
are constantly calling us regarding proposals. We are looking for a distinct type of company, onewith upstream capabilities, especially manufacturing. We are not searching for firms downstream asthat would pit us against our trading partners, which is something we definitely intend to avoid.
Q7: What will your dividend payment be?
A7: While we have not set a specific target to date, we are aiming to provide shareholders witha more stable and sustainable payout. You should know, however, that DOSHISHA has neverlowered its dividend in the past, and that we will do everything in our power to meet shareholder
expectations.

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 the
Memo 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 © 2011 Trias Corporation. All rights reserved.

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TAKUMA-PathfindersAn investment research platform
to support a Japanese Economic RenaissanceMay 31, 2011

Key Financial Data (Consolidated)
Key Financial Data (Consolidated)

Key Stock Indicators (Consolidated)
No. of Shares Issued
No. of Treasury Stock
Market Value (\million)
BPS (\)ROE (%)ROA (%)PER (times）
PCFR(times)
PBR (times)
Share Price (\)
Unit Share (shares)
Average Daily Volume (shares)

Mar. 2011
18,687,818
Mar. 2011
538,117
May 30, 201135,208Mar. 2011
2,226.2
Mar. 2011
11.3
Mar. 2011
8.7
FY3/12 est.
7.1
Mar. 2011
7.4
Mar. 2011
0.8
May 30, 2011
1,884
May 30, 2011100
May 30, 2011
55,057

Total Assets (\million)
Shareholders' Equity (\million)
Interest-Bearing Debt (\million)
Equity Ratio (%)
Ratio of Interest-Bearing Debt (%)
Free Cash Flows (\million)

Mar. 2011
Mar. 2011
Mar. 2011
Mar. 2011
Mar. 2011
Mar. 2011

53,15440,4035,095
76
13-3,270

ROE=Current Net Income÷Averaged Shareholders' Equity
of beginning of term and term end
ROA=Current Net Income÷Averaged Total Assets
of beginning of term and term end
PCFR=Maket Value÷(Current Net Income+Depreciation)
Average Daily Volume=Ave. Daily Volume for the last 12 months
Ratio=Interest-Bearing Debts÷Shareholders' Equity
Free Cash Flows=Operating CF+Investment CFFinancial Results (Consolidated)

Consolidated
Operating Ordinary
Net Sales
Net Income(\million）
IncomeIncomeFY3/08
83,140
5,143
5,183
2,849
FY3/0980,898
5,014
5,131
2,558
FY3/1086,629
7,701
7,594
4,293
FY3/11 fcst.
93,494
7,698
7,614
4,395
2Q FY3/12 fcst.
44,600
3,200
3,200
1,900
FY3/12 fcst.
98,000
8,200
8,200
4,800
Note: FY3/12 forecast announced on May 10, 2011

Dividendper Share (\)
154.4
45.00
140.9
45.00
236.5
55.00
242.2
55.00
104.7
27.50
264.5
55.00

EPS (\)

Share Price Charts and RSI
（Yen）
2,500

RSI
300

250

2,000

200
1,500

Share Price (Close)

150

1 Month Moving Average
3 Months Moving Average

1,000

RSI 14 Days Moving Average (RHS)

100
70
50

500

30

05
/3
1/
11

03
/3
1/
11
04
/3
0/
11

01
/3
1/
11
02
/2
8/
11

12
/3
1/
10

10
/3
1/
10
11
/3
0/
10

08
/3
1/
10
09
/3
0/
10

07
/3
1/
10

0

05
/3
1/
10
06
/3
0/
10

0

Source: 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 the
Memo 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 © 2011 Trias Corporation. All rights reserved.

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