[Speakers]
Hironobu Yasuhara
Representative Director, President and Corporate Officer

Akira Miyagi
Director and Managing Corporate Officer in charge of Group FinanceModerator: At first, we would like to announce the change in our business segments.
Please refer to page two of the presentation material.
In the Q1, the “Ai” and “Peach John” business segments, which had previously been in the
Wacoal Domestic Business segment, were changed to the Other segment following a partialchange of the performance management classification within the Group. However, in theQ2 of the fiscal year under review, the Peach John business, which was in the Other
segment, met the quantitative criteria, and therefore has been changed to the reportablesegment for the recording method.
Although this segment change will cause inconvenience to investors and analysts, it will bea change in accordance with accounting standards, and we hope that this will be understood.
Now, Miyagi will explain the results of the first half of the fiscal year ending March 2021
and the full-year forecast.
Please go ahead, Mr. Miyagi.

1Miyagi: Since we have taken enough distance from each other, please let me remove mymask. Thank you very much for joining us at the financial results briefing of Wacoal
Holdings despite your busy schedule.
Remember, just four years ago, on November 9, the previous U.S. presidential election
was on going while we were holding this kind of briefing. Although we are all concerned
about the result today, we would like to have an hour or so of your time.

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First, I would like to explain the results for the Q2 and first half of the fiscal year ending
March 2021 and the full-year forecast.
Please turn to page four first. This page summarizes the Q2, from July to September.
Net sales for the Q2 amounted to JPY44.6 billion. Store operations resumed following theliftings of the declaration of a state of emergency and lockdown, which led to recovery
compared to Q1. However, the impact of infectious diseases remained, and the pace ofrecovery was slow due to the shrinking range of consumer behavior and other factors.
Sales also fell 18% YoY, due in part to a reaction to the last-minute surge in demand prior
to the consumption tax hike in the same period of the previous fiscal year.
Operating income was JPY5.7 billion. Although earnings declined due to falling sales, thedecline of earnings was limited to 2% YoY as a result of efforts by each company to reduce
expenses and use of government support measures such as employment adjustment
subsidies.
Meanwhile, compared to the targets, ecommerce performed well in each country, and theimprovement in the profit margin and the reduction in SG&A expenses contributed tosignificantly exceeding both net sales and profits. I will explain the factors behind thedifferences with the targets later.

Let’s move on to the next page. This page shows the results of net sales and operating
income of business segments and major subsidiaries.

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While ecommerce was robust at all companies, stores sales were slow to recover. Sales of
Wacoal International in the U.S. remained unchanged from the same period of the previous
fiscal year due to the impact of the new consolidation of Intimates Online, which was
acquired last year. However, sales of Wacoal in the U.S., which handles the Wacoal brand,marked the recovery status of 85%.
Peach John posted a double-digit increase in revenues, thanks to successful marketing
activities and continued strong performance, particularly in ecommerce. Operating income
also rose significantly.

Please turn to page six. Trends in monthly sales of major operating companies arepresented as reference materials.
With the resumption of stores operations at each company, we go through the worst period
in the Q1, but the number of people with infections continues to rise worldwide, and theforecast of the future remains highly uncertain.

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Please turn to page seven. This page shows the monthly sales of Wacoal Corp. by channel
on an over-the-counter basis over time.
Even after the resumption of stores operations, the in-house ecommerce continued to growrapidly. On the other hand, the actual stores recovered once in June, but the pace ofrecovery slowed thereafter. In particular, the number of visitors to department stores andcommercial facility in central Tokyo has not returned and is continuing to be sluggish.
The decrease in September was due to a last-minute surge in demand prior to theconsumption tax hike in the previous year.

5Please turn to page eight. Trends in the rate of change in net sales by channel are shownfor major overseas subsidiaries.
Department stores in Europe and the United States continue to struggle as in Japan. Detailsof the business conditions of each operating company are described on the reference pageof the material. Please look.
This is the report for the Q2 only.

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Next is page nine. We will continue to explain the business conditions in the first half of the
fiscal year ending March 2021.
Consolidated net sales for the first half amounted to JPY73.2 billion. Revenues decreased
28% YoY due to the significant impact of the temporary suspension of operations at storesin the Q1. While the Wacoal business struggled both domestically and overseas, revenuesof Peach John grew.
Operating income was a surplus of JPY1.3 billion. As a result of the decline in revenues,
profits declined dramatically from the same period of the previous fiscal year. However, in
addition to efforts by each company to cut costs, we were able to secure a profit as a resultof the use of support measures by governments in each country, such as employment
adjustment subsidies.
Quarterly net income before income taxes was JPY3.6 billion, as unrealized gains (losses)
on securities and investments amounted to JPY1.6 billion.
Compared to the targets of the first half, net sales exceeded by JPY2.7 billion, and operating
income exceeded by JPY4.5 billion. At the time of the announcement of the targets, thecompany assumed that economic activity would resume and gradually recover from thelifting of the declaration of a state of emergency over the Q2 and made cautious budgets.
Although the pace of recovery in both domestic and overseas markets remained moderate,
performance in the first half of the fiscal year increased in both net sales and operating

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income. This was the result of high growth in ecommerce, improvements in the sales profit
margin from the targets, cost reductions at group companies, and other factors, as well as
the incorporation of unrealized gains on securities and investment gains.

Please turn to page 10. Operating income for the first half was JPY1.3 billion. However, inthe financial results for the first half of the fiscal year under review, temporary factors that
boost profits related to infectious diseases, such as the employment adjustment subsidy,
are included more than in normal years. In this page, we calculate operating income in realterms excluding such one-time factors.
One-time factors boosting profits in the first half of the fiscal year were approximately
JPY3.6 billion, including cost of sales and SG&A expenses totaling. After deducting theeffects of these factors, real operating income in the first half of the fiscal year would be aloss of JPY2.3 billion.

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Please turn to page 11. Next, I would like to explain the progress of cost reductions in thefirst half of the fiscal year.
As I mentioned earlier, the results for the fiscal year under review include one-time factorsthat boost profits, such as subsidies, and the results for the previous fiscal year also include
one-time M&A expenses. After deducting these effects, the real cost reduction amounted
to JPY5.7 billion, which was more than what we explained to you at the briefing session on
our financial results for the Q1.
On a quarterly basis, the amount of cost reductions in real terms was JPY3.7 billion for theQ1 and JPY2 billion for the Q2. It was a special situation in the Q1, and so, if we consider
this reduction in the Q2 as a benchmark, we believe that approximately JPY1 billion, which
is about half of this amount, can continue to be improved.

9Please turn to page 12. I will explain the factors behind the change in net sales in the firsthalf from the same period of the previous fiscal year in Waterfall.
Net sales for the first half decreased by JPY28.3 billion from the same period of the previous
fiscal year. As the series of red boxes indicates, all businesses except the Peach Johnbusiness experienced a decline in revenue due to the significant impact of the temporary
suspension of operations at stores in each country in the Q1.
Sales in the domestic wholesale business declined sharply due to factors such as thesuspension of operations, continued sluggishness in the department store channel evenafter resumption, and the reaction to the last-minute surge in demand prior to theconsumption tax hike last year.

10Please turn to page 13. Next, I will explain the factors behind the change in operating
income in the first half from the same period of the previous fiscal year.
Operating income for the first half decreased by JPY8.2 billion from the same period of theprevious fiscal year. In addition to the contribution to profits from Peach John, which
performed well at both company-owned ecommerce and directly managed stores, Wacoal's
reduction in SG&A expenses and the receipt of employment adjustment subsidies
contributed to the increase. However, the impact of the decline in sales was significant,resulting in a substantial decline in profits.

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Please turn to page 14. I will explain the factors behind the change in net sales comparedto the target for the first half.
Net sales for the first half increased by JPY2.7 billion compared to the target. Although we
carefully estimated the numerical targets, even after the resumption of stores operations,
Ecommerce performed well, and Wacoal's directly managed stores in the US, Intimates
Online, Wacoal Europe, Peach John, and other companies performed well, which resulted
in the excess of the targets.

12Please turn to page 15. I will explain the factors behind the change in operating income in
the first half compared to the target.
Operating income exceeded the target by JPY4.5 billion due to sales and the sales profit
ratio exceeding the target figures and efforts to reduce SG&A expenses.
The excess of the sales profit margin over the target was mainly due to the cautious forecastof manufacturing costs in Wacoal's wholesale business, a decrease in write-downs, or theeffect of product mix in the retail business.

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Please turn to page 16. This page shows the table of the overview of the first half, which
was shown on page nine.

For page 17, net sales and operating income by segment are shown. Beginning on the next
page, we will review the first half by each segment.

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In page 18, the Wacoal Business recorded domestic sales of JPY41 billion in the first half ofthe fiscal year. Wacoal's in-house ecommerce business increased 66% YoY.
On the other hand, stores posted a 29% YoY decline in income due to a continuing struggle
following the temporary suspension of operations during the declaration of a state of
emergency and a decline in the number of customers visiting stores in urban centers
following the resumption of operations.
Operating income was JPY900 million. This was largely due to the impact of the decline insales, resulting in a substantial decrease in profit, which was 86% compared to the same
period of the previous fiscal year. However, in addition to progress in cost reductions, wesecured profitability using employment adjustment subsidies and other means.

15Please turn to page 19. Sales in the Wacoal business overseas were JPY19.7 billion.
Similarly with the domestic business, ecommerce performed strongly, but the actual storescontinued to struggle due to the decline in customer visits and the impact of customers
restricting their purchasing limits, resulting in a 28% decrease in income compared to thesame period of the previous fiscal year.
Operating P&L was a loss of JPY300 million. In addition to declined income, we continued
to invest aggressively in advertising for Intimates Online, resulting in an operating loss. On
the other hand, as a result of cost reductions and the use of support measures bygovernments in each country, we were able to reduce the extent of the deficit comparedto the target.

16Please turn to page 20. Sales in the Peach John business were JPY5.8 billion. In addition to
in-house ecommerce, the actual stores after the resumption of operations remained firm,
resulting in a 6% increase in revenues YoY.
Operating income was JPY1 billion. In addition to the effect of growing revenues,
profitability improved significantly due to the withdrawal from unprofitable stores in theprevious fiscal year and the elimination of catalogue publishing.
Sales in the Other segment amounted to JPY6.6 billion. Sales decreased by 40% YoY due
to ongoing struggles affected by infectious diseases.
Operating P&L was a loss of JPY400 million. Although “Lecien” was able to secure a profit
due to the withdrawal from unprofitable businesses in the previous fiscal year, othersubsidiaries, such as “Nanasai,” were unable to absorb the impact of the decline in sales,
resulting in an operating loss.

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Please turn to page 21. Next, I will explain the full-year forecast.
As previously announced, we have revised our consolidated earnings forecasts. For theassumptions of revision, while the financial results for the first half exceeded the targets,considering the current situation of re-expanding infectious diseases and other factors, thesecond half forecast has been revised cautiously.
The forecast for consolidated net sales for the full fiscal year has been revised to JPY156
billion. Considering the weak return of customer visits to urban area stores in major
economies, it is a reduction of JPY2 billion from the initial forecast.
The forecast for operating P&L is an operating loss of JPY1 billion.
There are several reasons why the first half had an operating profit and the second half
have an operating loss, but one of them is that there will naturally be no factor for boosting
profits, such as subsidies. In addition, it is common for sales margins to drop by 2% in thesecond half due to differences in the product mix between the first and second half.
Also, there are factors such as the fact that impairment of fixed assets was factored insomewhat more severely.
On the other hand, this figure is an upward revision of JPY4 billion from the initial target.
The amount exceeded the target in the first half was JPY4.5 billion. In the second half ofthe fiscal year, we lowered our initial target by JPY500 million due to a careful review, as I

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mentioned earlier. Based on the revisions to operating P&L, net income before income taxes
and net income and loss have been revised upward by JPY4 billion and JPY3.7 billion,
respectively.

Please turn to page 22. Regarding the forecasts announced this time, we have included
comparisons with the initial targets, the results of the previous year, and the results of theyear before previous year. Temporary factors are deducted from SG&A expenses so that
actual figures can be confirmed. In the previous fiscal year, there are influences from thestagnation after the consumption tax hike and infectious diseases, and so, I will explain it
in comparison with the year before the previous year.
Considering current conditions, we carefully reviewed our performance in the second halfof the fiscal year. Therefore, we lowered our initial forecast for sales in the second half ofthe fiscal year to a 10% decline, although we had viewed sales in the second half as adecline of 5% YoY. As a result, net sales for the second half of the fiscal year are expected
to be JPY82.8 billion, a downward revision of JPY4.7 billion from the initial target.
In the second half of the fiscal year, we forecast an operating loss of JPY1.6 billion in realterms. The impact of lower sales results in a decrease of JPY500 million. The profit margin
is expected to remain at the same level as previous years.
Regarding cost reductions, we will strive to make further reductions in addition to theamounts listed.

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Please turn to page 23. The details of the revisions to the sales targets of the main
subsidiaries for the second half are as described here.
The forecasts have been revised downward in the Wacoal wholesale business and Wacoal
International, reflecting the uncertainty in the business environment.
For Wacoal Europe, where the spread of infections continues, the initial targets werecautious. However, we feel that uncertainty is increasing since the lockdowns in the U.K.
and other events have been announced after making this forecast.

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Please turn to page 24. Risks not reflected in the second half targets are stated.
Naturally, the spread of infectious diseases is the biggest concern, but downside risks suchas impairment of trademark rights and goodwill are the same as previous years, but they
are not factored into the figures in the current forecast.
If important matters to be disclosed occur, I would like to disclose the impact on the group'sbusiness results as soon as possible.

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Please turn to page 25. The forecast figures for the current fiscal year described so far are
shown in a table. Please refer to it later.

Please turn to page 26. The forecasts for net sales and operating P&L by segment are
shown.

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For page 27, the full year forecast for major subsidiaries is shown.
Figures in this material are based on accounting standards in each country. Operating P&L
of Wacoal and others does not include employment adjustment subsidies. They are includedin the non-operating items on a non-consolidated basis. I would like you to keep this pointin mind.

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Please turn to page 28. Please let me explain our capital policy and shareholder returns.
This is the basic policy for capital policy in the current medium-term management targets
announced in June 2019. We have not changed our basic policy as of today. However, if amajor change occurs in business performance or demand for funds, and that such impact
will continue in the next year, we may consider changing our basic policy.

Next is page 29. With regard to interim dividends, based on the current performance
forecast, from the viewpoint of maintaining financial soundness and stable dividends toshareholders, we have decided to pay a dividend of JPY20 per share, a decrease of JPY20
from the previous fiscal year, in line with the most recent dividend forecast. Similarly, weplan to pay a year-end dividend of JPY20 per share. There is no change.
Regarding share repurchases, we intend to decide to resume after assessing futurebusiness conditions.

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Please turn to page 30. This is the level of progress toward the investment results in thefirst half and the sales plan of strategic shareholdings during the current medium-term
management plan.

Next is page 31, the last page. This page shows the group's basic policies considering the
spread of infectious diseases.

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We talked about the details in May, and so, we will omit the explanation today. Based on
this policy, we will continue our efforts to build a highly profitable management structure.
The initiatives of individual companies were announced at the results briefing on July 31,
and we will continue to steadily proceed them.
Thank you for your attention.

Yasuhara: Next, I would like to explain the current status of the Wacoal group and thestatus of initiatives to address the issues. I have heard that there are not many briefings inthis way yet, but I am grateful for having this many people joining us today.
Also, as we are amid the election in the United States, I assume that it is difficult to stay
calm, or you have various concerns.
In addition, GoTo travel and other events have finally begun, and people and events havebegun to move. Until now, consumer spending has moved almost entirely toward goods,
but [Inaudible] events or so.
It will also be of interest to see how the balance between goods and such things will beachieved through this process. However, the background to this is the declining birthrate
and the declining consumer power and economic power of individuals in the face ofeconomic conditions, and so, the strength of the market itself is a general situation in which
we cannot expect much.

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Also, from the end of the year to the beginning of the new year, maybe not so much felt
in Kansai, but a big deal here, how the Olympics will take place will be a great interest, I
think.

Please turn to page 33. This page shows the sales of each country in the first half of the
fiscal year.
Frankly, I get the impression from our first-half results as a waypoint amid instability. I’m
grateful that we were able to achieve profitability as a result. However, at the outset of
COVID-19, various predictions were made, such that it will be calmed by the beginning of
the fall, but as I explained earlier, we expected it to be prolonged. In this sense, I thinkthat the first half of this fiscal year is still only a milestone in a variety of ways.
For performance of the second half of the fiscal year, as I explained earlier, infections arestill expanding again worldwide, and there are many countries and regions that have more
infected persons than in the past. Seeing diversification to rural area, also in Japan, theimpact of this COVID-19 cannot be foreseen simply as something that will calm down,
having everything recovered. We formulated the budget having these as premises.
I think you all know well about the conditions around the world as well, but France andEngland are locked down, and I still don't know what will happen in the US after the election
ends. In Europe in particular, the Christmas season is becoming a business season with agreat deal of weight in each country, and so, I wonder if there are some intentions to end
this situation by that time. I think it is entering into such a period.

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We had a television meeting with local people only in China last week, but now there arefew people around Shanghai wearing masks. It seems that it is a rule to wear a mask whenusing subway, but some people don't wear masks even there. It means that there are nopeople in the street that are making masks. The preliminary sales of Double Eleven has
already begun, and we, who is doing almost steady, are making good results. When illness
subsides, one might think that human beings will return to their original state.
I don't know when it will be, but there may come a time when everyone wearing masks
becomes a funny story.
As for the traffic of people. We have already started calculating the domestic market, but
we think that it is still not long before we can calculate the inbound consumption. Given
these, we formulate the targets for the second half.

Please turn to page 34. We have explained this on many occasions in the past, but it is thesecond year of the current medium-term plan. In that sense, even though there is no pointin saying this, but in next year, for the numerical targets we initially formulated, about themeasures we planned to implement, we will do what we should do, we will discontinue
what should be discontinued, we will start what should be started. These will the basis
going forward. From this fiscal year to the next fiscal year, we plan to implement a variety
of measures based on the assumption that we will not carry over to the next three-year
period, after clarifying what to be discontinued and what to be started and sorting them
out.

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Please turn to page 35. As I have just said, I think that how the top line is going to belargely depend on how long the impact of COVID-19 will be prolonged. In terms of our
profit structure, there are a number of points that have become our weaknesses over theyears, and while restructuring these, we plan to build a system that will generate a certain
level of earnings, even if there are some ups and downs of top-line. We would like tosomehow achieve that in the next fiscal year.

29Page 36 shows its contents. Having set a target of JPY10 billion from the current framework,
including personnel expenses, discontinuance and rebuilding of unprofitable business,
improvement of profit margins of others, and personnel expenses.

Combining them

together, we are proceeding with a target of JPY10 billion.

Please turn to page 37. Personnel expenses are mainly within Wacoal Corp. To date,approximately JPY30 billion has been spent for personnel expenses, and targeting reductionof JPY5 billion to approximately JPY25 billion in five years by March of the 24th fiscal year,
we started a variety of measures and staff planning in this fiscal year.

30Please turn to page 38. Please see unprofitable businesses, especially of subsidiaries. it was
not started suddenly, but it had been a task for a long time, and so, we have been sortingout.
For Peach John, in the current fiscal year, we had been implementing such measures prior
to COVID-19. Taking COVID-19 as an opportunity, which is a strange way to express it,
but using this as an impetus, we were able to transform into a highly profitable company
in terms of profitability, given the extremely rapid growth of ecommerce business.
In terms of how we will continue to do this in the future, we also consider the reorganizationof Peach John's overseas business and such as issues.
Regarding Lecien, we reduced the number of employees in the previous fiscal year throughscale measures and such, and because of that, even under these circumstances, we expect
to achieve profitability in the current fiscal year, reaching the break-even point.
Conversely, NANASAI, which is engaged in remodeling, refurnishing of mannequins andstores, had been performing well but is now struggling. This is also a situation where theindustry is down by more than 30% and about one third of the jobs blew away, and so,
not only we but also other companies have a great deal of headache. I think it will bedifficult for us to recover from this situation easily from the next fiscal year onward, and so,
we are working on this issue, including personnel.

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Regarding Ai, our main product is swimsuits, and we had high expectations for this year.
However, under these circumstances, demand for Ai has blown away almost entirely,
including overseas travel, and sales in the swimsuits industry are said to be around 10%
to 20%. We are currently discussing how to continue our business, including what to do as
a company thinking of the future.
Therefore, I think that certain levels of results have been achieved regarding Peach Johnand Lecien, that took various measures ahead. Conversely, in that sense, it would be
strange to say that we did not care about them, but NANASAI, which had been doing well,is becoming a major blow. As for Ai, we must determine how the market itself will be in
the future.
Other than this, there are businesses within the Wacoal Group that are not subsidiaries,
but are in the red in some divisions, and so, we would like to discontinue what should be
discontinued by carefully examining these as well.

Please turn to page 39. Measures to increase sales profit through other measures. This
includes reorganization of the brand or reorganization of the department store brand.
The group is also moving toward a reduction in the product numbers.
In addition, we believe that an increase in the ratio of in-house ecommerce will raise thetotal profit margin.

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Alternatively, the other is the sales system. We believe that the way in which we change
the sales structure of the wholesale business and keep down expenses will eventually leadto earnings.

Please turn to page 40. We are currently proceeding with what I have mentioned, and webelieve that the best start for these reforms will be to sort out what has been done so far
and review everything from scratch.
We have also received many proposals for various digital-related businesses, such as
cooperation with other companies, that we would like to pursue, although they have notyet sold. We hope to establish new businesses based on these ideas, and we will prepare
for the next three years.
We will continue to strive to increase corporate value by reforming our value chain fromthe customer's perspective and evolving our creative process.
From the perspective of a world-class underwear manufacturer, I think that we are at themost front in various points, including measures we are taking. We are proud that we areinvesting that much. By developing new customer connections and services that would not
be possible for other companies around the world, we hope to lead this into a growthstrategy.

33One of them is the development of a non-contact avatar counseling, which was introducedby NHK on the other day. We launched this service for the first time in the store in
Omotesando. I would like you to watch this for your reference.
Thank you very much for taking the time today.

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