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Results Briefing Summary
Summary of 1H FY3/24 Consolidated Results

Product Development Model Business hits targets,
profit forecasts also achieved
Consolidated(\ million)
Net sales

1H FY3/23
ActualYoY

1H FY3/24

Composition
ratio

ActualComposition
ratio

ChangeVs. forecast

Pct. Change

Forecast

ChangePct. Change

52,404100.0%

51,860100.0%

- 544

-1.0%

53,500- 1,639-3.1%

26,22350.0%

27,593

53.2%

1,370

5.2%

27,400193

0.7%

23,41444.7%

22,29743.0%- 1,117-4.8%

24,000- 1,702-7.1%Others

2,766

5.3%

1,969

3.8%

- 796

-28.8%

2,100

- 130

-6.2%

Gross profit

14,231

27.2%

14,984

28.9%

752

5.3%

15,100

- 115

-0.8%

SG&A expenses

10,392

19.8%

10,717

20.7%

325

3.1%

11,020

- 302

-2.7%

Operating income

3,839

7.3%

4,266

8.2%

426

11.1%

4,080

186

4.6%

Ordinary income

3,954

7.5%

4,384

8.5%

430

10.9%

4,080

304

7.5%

Net income

2,641

5.0%

2,931

5.7%

289

11.0%

2,750

181

6.6%

Product Development
Model Business
Wholesale
Model Business

Amid surging raw materials prices and the weak yen, the Company focused on selling products in profitable
categories in 1H FY3/24, leading to a modest decline in sales of 1.0% year on year. However, gross profit,operating income and ordinary income all increased year on year, supported by an improvement in the grossmargin.
Compared with forecasts released on May 10, 2023, net sales underperformed by ¥1.6 billion (-3.1%). By
segment, net sales in the Product Development Model Business beat forecasts by ¥0.2 billion (+0.7%) and theWholesale Model Business missed forecasts by ¥1.7 billion (-7.1%). However, operating income exceededforecasts by ¥0.19 billion (+4.6%) and net income outpaced forecasts by ¥0.18 billion (+6.6%).

Summary of 1H FY3/24 Consolidated Resultsby 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, manufacturesand 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 brandsand for products sourced from major manufacturers in Japan. The product range in the Wholesale ModelBusiness 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 Product Development Model Business,
but Wholesale Model Business weak
Product Development
Model Business

Wholesale
Model BusinessFamousbrands

NBprocessing[+6.8%]

51.8

Others

0 .0* 6Figuresin ( ) are composition ratio
Figures in [ ] are year on year change

52.4[-1.0%]

49.026.2
4 0 .027.5(50.0%)

26.1(53.2%)[+5.2%][+0.2%](53.4%)

8.0
7.2

2 0 .0(14.7%)

20.7(42.3%)

23.4
13.5

7.5(15.4%)[+12.1%](44.7%)[+12.8%](27.6%)(14.5%)[-7.0%]

15.3

22.2

(29.2%)[+13.2%](43.0%)[-4.8%]

14.7(28.5%)[-3.6%]

0 .0(¥ billion)

1H FY3/22

1H FY3/23

1H FY3/24< Product Development Model Business – Highlights >・Foods: Amid continued price hikes, demand is strong from single price retailers and discount stores forOEM products.

・TVs: 4K-compatible smart TVs that also allow users to watch streaming services are registering firm sales.

・Apparel: Developed in partnership with customers, T-shirts and homewares with popular anime character
designs are seeing strong growth.

< Wholesale Model Business – Highlights >> As noted at the start of this report, sales declined because the operating environment forced the Company tofocus on selling products in certain profitable categories. However, the following categories performed well:・Famous brands: Smartwatch sales are strong.

・Gifts (NB processing): Products featuring popular game characters are selling well as prizes for gamearcades and other amusement facilities.

Consolidated Forecasts for FY3/24

No revisions to forecasts released on May 10, 2023
Consolidated(\ million)

FY3/23

FY3/24

YoY

1H

2H

Full year

1H

2H

Full year

ChangePct. Change

Net sales

52,40453,305

105,70951,86059,139111,000

5,290

5.0%

Product Development
Model Business

26,22328,55354,777

27,59331,40659,000

4,222

7.7%

Wholesale
Model Business

23,41423,23946,654

22,29725,70248,000

1,345

2.9%

Others2,766

1,512

4,278

1,969

2,030

4,000- 278-6.5%

Gross profit

14,231

14,434

28,666

14,984

16,21531,200

2,533

8.8%

SG&A expenses

10,392

10,221

20,613

10,717

11,482

22,200

1,586

7.7%

Operating income

3,839

4,213

8,052

4,266

4,733

9,000

947

11.8%

Ordinary income

3,954

4,387

8,342

4,384

4,615

9,000

657

7.9%

Net income

2,641

2,979

5,621

2,931

3,168

6,100

478

8.5%

There are no changes to our full-year consolidated forecasts – net sales of ¥111.0 billion (+5.0% year on year)
and ordinary income of ¥9.0 billion (+7.9%).

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 to FY3/25.
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[Capture Opportunities: Initiatives in Tune with Current Trends]
We are implementing initiatives in line with current trends, such as “growth in inbound demand” and “risingprices and cost-of-living pressures.” For “growth in inbound demand,” we are supplying products that are in highdemand among visitors to Japan, such as carrying cases, cosmetics, and food and confectionery.
For “rising prices and cost-of-living pressures,” we are developing sales area proposals based on ideas andthemes that appeal to current consumer sentiment. For example, in the area of “energy efficiency and powersaving,” we offer ceiling circulators to improve heating efficiency and compact heaters for personal use, and in
the area of “value and affordability,” we provide mass-appeal cosmetic lines, confectionery, and gift packs with arange of seasonings and edible oils from different manufacturers at reasonable prices. These products areproving popular with many of our customers in various retail formats.

[Leveraging Our Strengths: Product Development Capabilities x
Positive Customer Contact]
We conducted in-depth research into the brand reputation of US Polo Assn, which is the official brand of the US
Polo Association and is handled by Doshisha in Japan. The results of our research indicated an effective
strategy would be to target women in their teens and early 20s from the standpoint of “everyday use” and“fashionable but also wearable.” Initially, Doshisha only handled US Polo Assn apparel, but by leveraging ourwide range of product planning and development capabilities based on the sales strategy derived from ourresearch, we expanded the product lineup to include bags, watches and accessories.
Previously, the main sales channel was physical stores, but we are now expanding into the online space backed
by consumer-focused marketing strategies. As a result, compared with FY3/19, we have increased the numberof SKUs deployed by 2.6 times to roughly 8,000 and expanded sales 2.5 times, making US Polo Assn apromising brand.
This is just one of the many initiatives in our growth strategy, and we are aiming for further business expansion
by flexibly reconfiguring our product portfolio to target markets with growth potential.

>> ESG Strategy< Sustainability Initiatives >We have established Doshisha’s Sustainability Policy, Sustainability Promotion Framework and Five
Materialities. Guided by these documents, we aim to help realize a sustainable society by implementing
initiatives that solve a range of issues. In addition, our Human Capital Strategy sets numerical targets for FY3/25
related to diversity and work style reforms, which we are now working to achieve.

Sustainability Initiatives
Helping to create a sustainable society
by sustainably increasing corporate value
Sustainability
PolicySustainability
Promotion
Framework

Guided by our management philosophy and code of conduct – the Company’s Founding Spirit,
Company Motto and Four Positives Spirit – we will engage in business activities that consider theglobal environment and lead to coexistence with society.
We have established a Sustainability Promotion Committee , chaired by Masayuki Nomura,
Doshisha’s President, CEO and COO. The committee is comprised of nominated members in executive
officer roles or higher positions.
The committee is responsible for discussing and deciding on issues related to sustainability, risk andcompliance.
We have identified and are working to address the following five materialities from the perspectives of"impact on society, the environment and the economy," "shareholder expectations" and "theDoshisha way."

Five Materialities

Key Indicators(1) Help people lead richer lives by providing unique and exciting experiences(2) Promote environmentally friendly business activities(3) Coexist with and contribute to society(4) Create a passionate, resilient company and human resources(5) Enhance corporate governance.
Under our human resources strategy, we will work to attain the following FY3/25 targets related todiversity and work style reforms.
● Ratio of women in career track positions: 16.0% or more
● Average overtime hours: 13 hours or less
● Annual paid leave utilization rate: 70% or more
● Male parental leave utilization rate: 50% or more

For more details, please visit the sustainability section on our website (Japanese only)
https://www.doshisha.co.jp/lp/sustainability/

>> Balance Sheet Strategy< Returning Profits to Shareholders: Dividend Increase >Returning profits to shareholders ⇒ Increased dividend
Dividend per share
Year-end dividend (\)(¥)

Interim dividend (\)(¥)

Dividend payout ratio

80.0

60.0%

70.0
70.0

55.0%

65.0
60.0

60.0

50.0%

55.0
50.0

50.0

50.0

50.0

45.0%
43.7%

43.6%

40.0

40.0%
40.9%

39.2%

39.6%30.0

35.0%

32.9%
29.5%

20.0

30.0%

10.00.0

25.0%

FY 3 /1 8

FY 3 /1 9

FY 3 /2 0

FY 3 /2 1

FY 3 /2 2

FY3/20FY3/21

FY 3 /2 3

FY 3 /2 4e s t im a t e

20.0%

（¥）

FY3/18Interim dividend (\)

25.0

FY3/19
25.0

25.0

25.0

FY3/22
30.0

FY3/2330.0

FY3/24
estimate
35.0

Year-end dividend (\)

25.0

25.0

25.0

30.0

30.0

35.0

35.0

Total

50.0

50.0

50.0

55.0

60.0

65.0

70.0

Dividend yield
Dividend payout ratio

2.0%

2.9%

3.9%

2.9%

4.0%

3.4%

-32.9%

43.7%

43.6%

29.5%

40.9%

39.6%

39.2%

As announced on May 10, 2023, the FY3/24 interim dividend is ¥35 per share, an increase of ¥5, and theyear-end dividend will be ¥35 per share. As such, the Company plans to pay a full-year dividend of ¥70 pershare, an increase of ¥5 from the previous fiscal year.
In addition to paying a consistent and stable dividend, we are working to increase shareholder value overthe 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 our management philosophy and businessmodel and satisfy the growth expectations of our investors.

(November 2023)