Fiscal Year Ended March
31, 2019
Business Results
Presentation[U.S. Accounting Standards]
Wacoal Holdings Corp.
May 2019
1

FY2019 Financial Results Summary

Masaya Wakabayashi,
Director and Vice President

2Changes of Accounting Policy Accompanying Revisions of
Accounting Standards, etc.
●With the revision of the United States’ Generally Accepted Accounting Principles (GAAP), as of this fiscal
year the following rules have been applied to our consolidated financial statements.

(1) Rules concerning profit occurring from contracts with customers
We consider amounts expected to be gained through the exchange of goods or services in accordancewith a contract with a customer to be revenue. With the application of these rules, the liabilities pertaining
to returned products that were included in the allowance for returns and doubtful receivables for current
assets until the previous year are, as of this year, now recorded as refund liabilities under current
liabilities, and rights of recovery for returned products are recorded in return assets in current assets.
(2) Rules concerning perception and measurement of financial instruments
We appraise equity securities (except those accounted for under the equity method of accounting or thosethat result in consolidation of the investee) with a fair value, and count the fluctuation in this value in net
income and losses. With the application of these rules, other income or expenses in the consolidated
income statement for this year include approximately ¥5.6 billion in valuation loss on marketablesecurities and investments.
(3) Rules concerning statements of periodic pension cost and periodic postretirement benefit cost
Of the periodic pension cost and periodic postretirement benefit cost, we count structural elements otherthan service cost as other income or expenses. In order to backdate the application of these rules, wehave reclassified ¥1,040 million of operating expenses as other income or expenses in the consolidated
cumulative period of the same period in the previous year.
*For details, see page 17 of the appendix of the summary of consolidated financial statements.

3

Overview of Results for FY2019 (Executive Summary)•••

Net sales dropped ¥1.5 billion YoY, but sales profit grew ¥700 million through the enhancing businessefficiency.
Operating income decreased ¥6.6 billion, but the profit in real terms, excluding the impact of therecognition of the impairment charges, was ¥10.7 billion, exceeding the estimate.
In response to the revision to the U.S. Accounting Standards, a valuation loss on marketablesecurities and investments of ¥5.6 billion was posted in other income or expenses.
(*Reference info is written on the following page.)

Net sales¥194.2 billion (Down ¥1.52 billion (0.8%) year on year) Sluggish domestic wholesale of Wacoal Corp.
 Struggling performance of Lecien and Ai
Operating income¥4.88 billion (Down ¥6.62 billion (57.6%) year on year) Gross profit rate hit a record high.
 A loss from impairment charges on other intangible assets for Peach John and
Ai amounting to ¥5.83 billion was posted.
Net income¥340 million (Down ¥9.4 billion (96.5%) year on year) impacts of valuation loss on marketable securities and investments(¥3.86 billion (*after taking into account tax effects))
4

Financial Results Summary for FY2019(Millions of yen)
FY2018results

FY2019results

Year on Year

FY2019targetChangeCompared with Target% Change

Difference% Difference

Millions of yen

Millions of yen

Millions of yen(ratio)(ratio)(ratio)195,725

194,201

200,000-1,524- 0.8%-5,799- 2.9%

Cost of sales(%)

92,03289,80496,000-2,228- 2.4%-6,196- 6.5%

47.0%

46.2%

48.0%

Sales profit(％)

103,693

104,397

104,000

704

+0.7%

397

+0.4%

53.0%

53.8%

52.0%

SG&A expenses(%)

92,701

93,68494,000

983

+1.1%

-316

- 0.3%

47.4%

48.2%

47.0%

Compensation income（Return of SG&A expenses）

-708

ー

ー

708

ー

ー

ー

A: Impairment charges on goodwill andother intangible assets

206

5,834

ー

5,628

ー

5,834

ー

Operating income（％）

11,494

4,879

10,000-6,615- 57.6%-5,121- 51.2%

5.9%

2.5%

5.0%

Other profit or loss

2,789

2,894

3,000

105

+3.8%

-106

- 3.5%

3-5,5700-5,573ー-5,570ー

Income before taxes

14,2862,203

13,000-12,083- 84.6%-10,797- 83.1%

Net income attributable to
Wacoal Holdings Corp.

9,745

341

10,000-9,404- 96.5%-9,659- 96.6%

Reference figure (i): Operating income
not taking into account A

11,70010,713

10,000-987- 8.4%

713+7.1%

Reference figure (ii): Income before taxes
not taking into account A and B

14,48913,607

13,000-882- 6.1%

607+4.7%

Reference figure (ⅲ): Net income
not taking into account A and B

9,949

9,636

10,000-313- 3.1%-364- 3.6%

Consolidated net sales

B: Valuation gain (loss) on marketablesecurities and investments – net

Exchange rates: USD = 110.91 yen (110.85 yen in the previous year); GBP = 145.68 yen (147.03 yen in the previous year); CNY = 16.72 yen (16.63 yen in the previous year)

5

YoY Increase/Decrease in Net Sales of Each Business• Sales: Down ¥1.5 billion

The wholesale business of Wacoal Corp. saw sluggish
performance of products other than bras.

FY2018¥195.7billion(100 millions of yen)

Otheroverseas
corporations+2.5

Nanasai+11.4

Lecien-9.3

FY2019¥194.2billion

PJ-3.0

WacoalWholesale
Business-26.6

Wacoalotherbusinesses
Deletion ofinterWacoal department
Retail and transactions
WEB+2.7
Businesses
+1.9

Ai
-9.1
China
+10.3
Europe+0.9

The U.S.
-1.6
Lecien and Ai delayed in
responding to market
changes.

Other
adjustment+4.7

Effects of revisionsof accounting
standards(1) Income fromoutsourcing fee forsales staff’s tasks(2) Deletion of sales
from the fee for using
logistic centers byclients, etc.

6

YoY Increase/Decrease in Operating Income of Each Business• Operating income: Down ¥6.6 billion, but operating
income in real terms was down ¥300 million.
Temporary
impact(Compensation
income andimpairment
loss)
-5

(100 millions of yen)

WacoalRetail andWEB
WacoalBusinesses
Wholesale+3.4
Business+3.3

EuropeThe U.S. ＋1.8
＋0.5

Wacoal backoffice SG&A
-4.2

FY2018¥11.5
billion

FY2018(in realterms)¥11.0
billion

China
＋3.9
Other
overseas
corporations-1.8

Nanasai
＋0.6
PJ
-6.6

Ai
＋0.4
Lecien-4.5

Peach John posted an operating loss,
due to the augmentation of personnel
cost, etc. and temporary expenditure.

Profit of Wacoal
Corp. grew 250
million yen.

Other
＋0.3

Impairment
charges onotherintangible
assets-58.3

FY2019(in realterms)
Lecien posted an
operating loss due tothe decline in sales.

¥10.7
billion
FY2019¥4.9billion7

Overview of Each Operation Segment for FY2019(Millions of yen)

FY2018results

FY2019results

FY2019targetvs. Prev.
FY

vs. Target

195,725

194,201

200,000-1,524-5,799Wacoal Business (Domestic)

116,085

113,400

117,000-2,685-3,600Wacoal Business (Overseas)

51,88853,10054,5001,212-1,400Peach John Business

10,795

10,491

11,000-304-509

Other Businesses

16,957

17,21017,500253-290

Operating income

11,494

4,879

10,000-6,615-5,121

Wacoal Business (Domestic)

6,845

6,325

5,800

-520

525

Wacoal Business (Overseas)

3,852

4,581

3,400

729

1,181

Peach John Business

441-5,859400-6,300-6,259Other Businesses

356

-168

400

-524

-568

Consolidated net sales

8Overview of Wacoal Corp. (1): Situation of Sales at stores in Japan• Our own EC site: Double-digit growth• Weak sales at department stores, and stagnant sales at sports
chain stores••

GMS and supermarkets: Performing well with enhanced product competitivenessDirectly managed retail stores: Remained healthy■Yearly change in sales at stores by sales channel of Wacoal Corp.

Wholesale

Retail(Unit: %)

1Q

2Q

3Q

4Q

AnnualDepartment store

97

93

97

96

96

⇩

GMS,Supermarket（Wacoal Brand）

100

98

106

103

102

⇧

GMS,Supermarket（Wing Brand）

103

96

106

105

102

⇧

Specialty Stores

99

101

101

100

100

Sports Chains

91

85

96

85

90

⇩

Third Party EC Sites

109

98

97

96

99

⇩

Retail stores

105

99

100

98（※）

100

101

Wacoal’s Own EC Site

110

109

116

111（※）

111⇧ 112

Catalog mail‐order

79

96

94

92

89

Real
growthrate*The decrease in sales worsened by extention of the expiration period for points earned under the customer's loyalty program.

9

Overview of Wacoal Corp. (2)Net sales¥102.36 billion (Down ¥2.2 billion (2.1%) year on year)Wholesale: The performance of innerwear (such as lingerie) other than bras was stagnant.

The functional tights “CW-X,” nightwear, innerwear for children and pregnant women did not sell
well. (Innerwear: -¥1.1 billion; CW-X, etc.: -¥600 million; nightwear: -¥600 million; innerwear forchildren and pregnant women: -¥400 million)
Affected by the closure of department stores and GMS and supermarkets

Retail: Directly managed retail stores performed well, but the increase in sales was slight, due to thedecrease of discount sale and the revision to the loyalty program■Sales of each business in Wholesale Business Division of Wacoal Corp.
FY2018results

FY2019results

FY2019target(Millions of yen)vs. Prev.
FY

vs. Target

Wacoal

42,22341,387

42,110

-836

-722

Wing

20,256

19,963

19,950-292

13

Wacoal

5,631

5,361

5,825

-271

-464

Wing

957

666

622

-291

44

Family wear Business

Wacoal

3,779

3,406

3,840

-373

-434

Good Age Business

Wacoal

1,516

1,544

1,651

28

-107

Men's inner Business

Wacoal・Wing

1,903

1,927

2,100

24

-173

Wacoal・Wing total

76,26674,25576,098-2,011-1,843CW-X Business

4,483

4,047

4,747

-436

-701

Others（Shoes・Swimwear etc）

1,557

1,365

1,533

-192

-168

Wellness

6,040

5,411

6,280

-629

-869

Others

2,701

2,680

2,822

-21

-142

85,007

82,34685,200-2,661-2,854- 3.1%- 3.3%

Innerwear Business

Personal Business

Wholesale Division total

10

Overview of Wacoal Corp. (3)Operating income

¥5.1 billion (Up ¥250 million (5.1%) year on year)

Wholesale: Gross profit rate improved thanks to the decline in rate of return of products, and SG&A
was reduced.
Retail: Gross profit rate improved through the strengthening of regular products (The sales volumeof the bra “Bragenic” was 700,000 pcs, up 62% YoY)
Back-office SG&A: Expenses for retirement benefits and IT development cost for omni-channel
strategies augmented.

■Net sales and operating income of Wacoal Corp.
FY2018results

FY2019results(Millions of yen)
FY2019targetvs.
Prev.FY

vs. Target

Wholesale Division

85,007

82,34685,200-2,661-2,854Retail end WEB Business Department

24,423

24,616

26,200193-1,584

Others(Intersegment transactions,etc.)-109,430-106,962-111,400

2,468

4,438

106,535

103,990

107,600-2,545-3,610Wholesale Division（*2)

15,017

15,34915,000332

349

Retail and WEB Business Department
（*2)

1,660

1,997

1,795

337

202

Indirect department SG&A expenses-11,826-12,247-12,695

-421

448

4,851

5,099

4,100

248

999

Net sales（*1）

Operating income（*1The figures before consolidation adjustment)（*2 The operating income of the division is the figure before the transfer of internal expenses.）11

Overview of Wacoal International Corp. (The U.S.)
Net sales¥18.49 billion (Down ¥160 million (0.8%) year on year)

The sales from our own EC site and third-party e-commerce sites grew 10% YoY.
Affected by the sluggish sales at department stores and the closure of some department
stores due to business failureOperating income¥2.1 billion (Up ¥50 million (2.6%) year on year)

Inventory valuation loss augmented, and gross profit rate worsened.
Rebound from the temporary expense for structural reform posted in the previous term

■ (The U.S.) Yearly change in sales in major channels and regions (in local currency)

Store

Channel(Unit: %)

1Q

2Q

3Q

4Q

AnnualDepartment store

89

98

86

109

95

Outlet・
Directly managed store

125

142

205

149

146

Store sales total

90

98

87

109

95

Department store EC sites

105

121

74

108

102

Third Party EC sites

105

113

129

127

116

Wacoal’s Own EC Site

121

107

117

110

114

EC sales total

109

114

103

114

110

America

93

98

91

110

98

96

Canada

107

135

91

107

112

4

EC sitesArea

ratio（※）

71

29

12

Overview of Wacoal Europe
Net salesIn the U.K., sales were on a plateau, due to the inventory adjustment, etc. as theperformance of department stores worsened.
EC sales grew rapidly.
The presence of the brands “elomi” and “Wacoal” got stronger.

Operating income¥14.11 billion (Up ¥90 million (0.6%) year on year)¥1.41 billion (Up ¥180 million (14.8%) year on year)

Profitability improved, as the recommended retail prices were raised and unprofitable directly
managed retail stores were closed down in the U.K.
As the development of our own EC site was delayed, related expense was curtailed.

■ (Europe) Yearly change in sales in major channels and brands (in local currency)

store

1Q

2Q

3Q

4Q

Annualratio（※）

Department store

110

87

81

93

93

23

Specialty store

98

104

103

109

103

53

Directly managed store

87

79

76

74

80

6

Third party EC sites/other

130

124

112

120

121

18

Fantasie

103

93

83

108

96

30

Freya

102

85

88

92

92

23

Goddess

102

105

90

92

98

7

Elomi

121

120

111

121

119

25

Wacoal

102

109

99

111

106

15

B.Tempted

114

81

69

81

84

1

ChannelEC sites

Brand(※）(Unit: %)13

Overview of Wacoal China
Net sales¥11.62 billion (Up ¥1.03 billion (9.7%) year on year)

EC growth was accelerated through the enhancement of customer data marketing (up 47%
YoY).
Healthy performance of department stores whose sales promotion in the demand season
bore fruit

Operating income¥910 million (Up ¥390 million (75.9%) year on year)

Gross profit rate improved thanks to the improvement in inventory efficiency and the ratio of
EC sales.

■ (China) Yearly change in sales in major channels and brands (in local currency)(Unit: %)

1Q

2Q

3Q

4Q

Annualratio（※）

Department store

107

107

103

106

106

83

Third party EC sites

168

144

128

146

147

17

Wacoal

117

115

107

117

114

80

Salute

108

97

96

94

99

10

LA ROSABELLE

48

50

98

68

63

2

Peach John

107

95

88

106

97

9

ChannelBrand

14

Overview of Other Asian Regions
Net salesThe sales of mold pads, etc. of material factories in Thailand increased.
Business in India: 3 directly managed retail stores opened in the current term (a total of 12
stores as of the end of the term)

Operating income

¥8.89 billion (Up ¥250 million (2.9%) year on year)¥170 million (Up ¥100 million (155.4%) year on year)(*Total for overseas affiliates: ¥450 million; consolidated adjustment (unrealized revenue,etc.): down ¥280 million)

Enhancement of productivity of factories in Vietnam
As the clothing lace business of material factories in Thailand was discontinued, gain on saleof land and buildings was posted.
Rebound from the impairment charges on goodwill posted in the previous term

Vietnam factory

Directly managed
retail store operated
by Wacoal India

15

Overview of Domestic Subsidiaries (1)Peach John(PJ)

Net sales¥10.49 billion (Down ¥300 million (2.8%) year on year)

The sales of the domestic stores declined year on year for the 11th consecutive month.
-¥220 million (Down ¥660 million year on year
(excluding effect of impairment charges))

Operating lossAugmentation of personnel cost due to the treatment improvement of sales staff, increase in logistic
cost and temporary expenditure for office relocation
Slowing growth rate of business in China■Peach John Sales by domestic business・Year-on-year change

1Q

2Q

3Q

4Q

Annualratio（※）

Mail-order

99

105

94

80

94

46

Store

93

94

94

95

94

54

Net salesAi

¥4.18 billion (Down ¥910 million (17.9%) year on year)

Downturn of the core swimwear business in the summer season, in which demand is highest.

-¥320 million (Up ¥40 million year on year )Operating loss

(Unit: %)The underwear business moved into the black, through the enhancement of sales of
Wacoal products.

■Ai Sales by division・Year-on-year change(Unit: %)

1Q

2Q

3Q

4Q

Annualratio

Swimwear

71

77

98

96

78

72

Innerwear

93

91

97

99

95

28

16

Overview of Domestic Subsidiaries (2)Lecien¥6.28 billion (Down ¥930 million(12.9%) year on year)

Net salesThe sales of the core innerwear business were sluggish, as the number of PB products adopted at
GMS and supermarkets decreased.

-¥380 million (Down ¥450 million year on year)

Operating lossOperating loss due to the drop in sales■Lecien Sales by division・Year-on-year change

Nanasaifirst halfsecond half

Annualratio

Innerwear Div.

84

99

91

69

Art Hobby Div.

86

92

88

16

Material Div.

76

85

81

10

Apparel Div.

57

94

74

5

¥9.41 billion (Up ¥1.14 billion (13.7%) year on year)

Net sales

The construction business grew significantly, due to the completion of remodeling of leading
department stores and the acquisition of an order for new interior finishing work.

Operating income(Unit: %)¥280 million (Up ¥60 million (27.0%) year on year)

Due to the rise in the ratio of the construction business, gross profit rate declined, but the ratioof operating income to net sales grew due to the reduction of SG&A.

■Nanasai Sales by division・Year-on-year change(Unit: %)first halfsecond half

Annualratio

Rental and lease

102

99

100

21

Production sales

130

100

113

19

Construction

149

101

121

60

17

Capital Policy and Shareholder Returns
Medium-Term
Management
Plan

Cash Used
Mid-term Goals

Cash Generated
Mid-term Goals

1) Profitability
improvement
FY2016
Shareholders’equity¥224 billion

ROE
4.9%

3-year results2) Working capital
reduction3) Review ofstrategic
shareholdings

Cash
Generated

Cash Generated
Net income＋Depreciation＋(Assetimpairment)¥45 billion or more

Cash
Used

FY2019
Shareholders’equity¥220 billion

Stabledividends

Flexibleshare repurchases

Cumulative total
for medium-term
management plan

FY2017FY2018FY2019Net income 1)

125.3

97.5

96.4(*)

319.2

Depreciation

50.3

54.9

56.5

161.7

8.2

1.3

18.3

27.8

Capex

74.5

58.8

57.8

191.1

Total dividends 2)

46.5

73.9

47.8

168.2

Purchase oftreasury stock 3)

45.2

40.1

69.2

154.5

Sale of marketable securities(100 millions of yen)

Investment in existing
businesses
New businesses¥25 billion or more（(*) For the fiscal year ended March 31, 2019, net income was calculated without consideration forvaluation gain (loss) on marketable securities and investments, impairment charges of PJ, and related taxes.）

Total payout ratio（=（2)＋3)/1)）

73%

117%

121%

101%

ROE
5% or
higher

FY2019
Shareholders’equity¥216.5 billion

Net income¥340 million

ROE
0.2%
(For reference)
Real ROE
4.2%
18

Outcomes and Issues of theMedium-Term Management Plan
(Review of FY2107 to FY2019)

Hironobu Yasuhara,
Representative Director and President

19

Degree of Achievement of Quantitative Goals Set
in the Medium-Term Management Plan (Executive Summary)•••

Net sales were ¥20.8 billion lower than the goal (or ¥18.8 billion lower than the goal in real terms,
excluding the effects of exchange rates)
Operating income was ¥10.1 billion lower than the goal (or ¥3.2 billion lower than the goal in realterms, excluding the effects of revision to the accounting principles and impairment charges)
Excluding the effects of impairment charges, the ratio of operating income to net sales was 5.5%, andreal ROE 4.2%.

Net sales

Sluggish domestic wholesale of Wacoal Corp. (¥3.6 billion below the goal)
Struggling performance of Peach John, Lecien and Ai (total for 3 companies: ¥9.1 billion below the goal)
Effect of exchange rate fluctuations (¥2 billion below the goal)

Operating incomeMedium-term goal: ¥15 billion → Results: ¥4.9 billion(¥10.1 billion (67.5%) below the goal)

Effect of sluggish sales of Peach John, Lecien, and Ai (total for 3 companies: ¥2.2 billion below the goal)
Delay in the full-scale operation of material factories in Thailand (¥500 million below the goal)
Revisions to accounting principles (¥1.1 billion below the goal) ・ Impairment charges on other intangible
assets (¥5.8 billion below the goal)

Net incomeMedium-term goal: ¥215 billion → Results: ¥194.2 billion(¥20.8 billion (9.7%) below the goal)

Medium-term goal: ¥11 billion → Results: ¥300 million(¥10.7 billion (96.9%) below the goal)

Effects of valuation loss on marketable securities and investments (¥3.9 billion below the goal (*after taking
into account tax effects))

ratio of operating
income to net sales

Medium-term goal: 7.0% → Results: 5.5%
(in real terms excluding the effects of impairment charges)

ROE

Medium-term goal: 5.0% or higher → Results: 4.2%
(in real terms based on a simple method)20

Situation of Sales of Each Business[Compared with Medium-term Goals]• Net sales: ¥20.8 billion below the goal(100 millions of yen)

As for the wholesale business of Wacoal Corp., the sales of CW-X and thecategories other than bras were sluggish.
WacoalWholesale
Business-35.9

Wacoal otherbusinesses
Deletion ofinterdepartment
transactions＋6.7
WacoalRetail andWEB
Businesses-47.2

Directly managed retail stores started prioritizing profitability (retail business: 32.3 below thegoal; our own EC site: 6.2 below the goal; catalogues: 8.6 below the goal）

The U.S.
Europe-10.7-7.1(excluding the(excluding
effects of
exchange rates) the effects of
exchange
rates)

China+5.1(excluding theeffects of
exchange
rates)

Other overseas
corporations-16.5(excluding theeffects of
exchange rates)

Effects of
exchange
rates
-20.3

PJ
-27.1

The sales of PJ products in its own EC site, Lecien’s PB innerwear sold at GMS andsupermarkets, and Ai’s swimwear were stagnant.

Nanasai-7.3

Other
adjustment+15.3

Lecien
-32.3

Ai
-31.2

21

Situation of Operating Income of Each Business[Compared with Medium-term Goals]• Operating income: ¥10.1 billion below the goal; in real terms,¥3.2 billion below the goal
WacoalWholesale
Business+9.9

Effects ofrevisions ofaccounting
standards-11.0(100 millions of yen)

Europe＋2.2(excluding theeffects of
exchange rates)
WacoalRetail andWEB
Businesses-7.4

Wacoalbackoffice
SG&A
-3.6

The U.S.
-1.2(excluding
the effects
ofexchange
rates)

Because sales did not reach the goal
due to the delay in full-scale operationof material factories in Thailand

China
-0.9
(excluding Other overseas
corporations
the effects
Effects of-5.1of(excluding the exchange
exchangeeffects of
rates
rates) exchange rates) -2.2
PJ
-10.2

The business efficiency of wholesale of
Wacoal Corp. improved.

Nanasai-1.7
Lecien
-6.3
Ai
-5.3

Medium-term
goal Medium¥15 term goal

billion(in realterms)¥13.9
billionDue to the sluggish
sales of PJ, Lecien,and AiOther-0.2

FY2019Impairment
loss
-58.3

(in realterms)¥10.7
billion
FY2019¥4.9billion22

Medium-Term Management Plan—5 Basic Policies

1. Secure earnings in domestic
business

2. Generate further growth inoverseas business3. Create Group synergies andstrengthen competitiveness4. Expand our businessportfolio

5. Improve our Group management infrastructure

Improved
profitability
Improvedbusiness efficiency

Effective
financialstrategy

Improved
capital efficiency
(ROE)

23

Outcomes and Issues of the Medium-Term Management Plan
[Economic Value]: Domestic Businesses
Outcomes

Breakaway from the wholesale-biased business model of Wacoal Corp. andredevelopment of a business model：Net sales did not reach the goal, but operating income was around the medium-term goal.
：Business efficiency improved through the organizational restructuring and revision of sales
customs in the wholesale business.
： Enhancement of profitability through the brand value increase of the retail business.
Completion of the preparation for next-generation services of attending to customers： Practical application of the customer information database： Development of services for attending to customers by utilizing 3D body scanners and AI

IssuesDecrease of customers due to the decline in product competitiveness of Peach John
Delay in response to remarkable changes in the competitive environment of major
markets： Downturn of Lecien’s PB products for GMS and supermarkets, fashionable swimwear of Ai,
and sporting tights of CW-X

Countermeasures

Distribution channel strategies that cannot be imitated by competitors, by evolving customer
services with digital technologies
Downsizing and optimization of brand and product compositions, and maximization oforganizational productivity in the corporate group or business alliances through the structuralreform and cooperation of the value chain24Outcomes and Issues of the Medium-Term Management Plan
[Economic Value]: Overseas Businesses
OutcomesDevelopment of the second pillar of our brands based on the brand portfolio strategy suited forregional characteristics： Expansion of sales of “elomi” in Europe and the U.S. and “Peach John (PJ)” in China
Acceleration of growth potential through the active cultivation of EC channels： Ratio of EC sales in FY2019: 29% (20%) in the U.S., 19% (13%) in Europe, 21%* (12%*) in China(The parenthesis represents the value in FY2016) (*In China, the EC sales of PJ included)

Issues

Waning of department stores and specialty store channels in major countries (theU.S., China, the U.K., and France)
Delay in the development of a supply system of material factories in Thailand andenhancement of competitiveness of sewing factories in Myanmar

Countermeasures






To swiftly respond to changes in the market due to accelerated digitization, andstrengthen our business structure that can accelerate growth
Investment and development of a business base for expanding businesses incountries and regions where our businesses are still small-scale
Establishment of a supply chain with competitive advantages (high quality andadded value)
Challenge to non-continuous growth25Outcomes and Issues of the Medium-Term Management Plan [Social Value]:

CSR for Sustainable Development
OutcomesStart of CSR procurement in cooperation with entrusted manufacturers (October 2017)： Human rights, labor practices, the environment and ethics
Determination of important missions (materiality) as our CSR

Start of the accommodation business by renovating traditional townhouses in Kyoto (April
2018)
To support the “breast care (breast cancer)” issues around the world

Issues

Risk of coming under fire by posting an ad that would deny diverse values
The digitization of customer information increases the risk of information leak by hackers, etc.
Coexistence with the earth environment by doing without plastics for packaging and reducing
the amount of unsold products discarded26

Outcomes and Issues of the Medium-Term Management Plan [Social Value]:

Transparent System for Tightening Corporate GovernanceOutcomesDiscontinue the anti-takeover measures
Decrease of strategically held shares, and compliance with corporate governance guidelines fornomination, remunerations, etc. of executives
Continuation of education about corporate philosophy and compliance

IssuesAppropriate disclosure of mid/long-term visions, KPIs, succession plans, etc. that would
contribute to the improvement of corporate value
To decrease strategically held shares further

Outcomes and Issues of the Medium-Term Management Plan[Social Value]: Vibrant Corporate Culture Utilizing Diversity
Outcomes

Development of a comfortable working environment through the reform of ways of working andtaking days off (telecommuting and temporary retirement systems)

IssuesDevelopment of an organizational structure that accepts diverse personnel
Succession of skills and abilities at production sites around the world
Improvement of a worthwhile working environment where we put importance on results

27Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:

Wacoal Corp.
Net sales

Medium-term goal: ¥110 billion → Results: ¥102.4 billion(¥7.6 billion (6.9%) below the goal)①Medium-term goal of wholesale business: ¥85.9 billion → Results: ¥82.3 billion (¥3.6 billion (4.2%) below the goal)
Downturn of the wellness business (CW-X), and sluggish sales of nightwear, men’s underwear, and knit-unederwear
Impacts of closure (19 shops closed down at department stores in 3 years)②

Medium-term goal of retail and WEB businesses: ¥29.3 billion → Results: ¥24.6 billion (¥4.7 billion (16.1%) below thegoal)
We refrained from opening directly managed retail stores excessively, and started prioritizing profitability. (¥3.2 billion
below the goal)
Our own EC site (Wacoal Webstore) grew with a CAGR of 13%, but did not reach the goal. (¥620 million below the goal)

“SUHADA ONE”
with more
comfortable texture“BRAGENIC”
non-wired bras available at
directly managed retail stores

28

Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:

Wacoal Corp.
Operatingincome

①


②



Medium-term goal: ¥5.2 billion → Results: ¥5.1 billion(¥100 million (1.9%) below the goal)

Medium-term goal of wholesale business: ¥14.3 billion → Results: ¥15.3 billion (¥1 billion (6.9%) above the goal)
As the loss from evaluation decreased through the reduction of returned products, gross profit rate improved.
Through organizational restructuring, business efficiency improved.
Less profitable stores were closed down.
Medium-term goal of retail and WEB businesses: ¥2.7 billion → Results: ¥2 billion (¥700 million (26.9%) below thegoal)
Discount sale was reduced at directly managed retail stores and the ratio of products shared among shop brands
increased. As a result, gross profit rate hit a record high.
On the other hand, the expenses for the improvement of treatment of sales staff, renting shops, logistics for ourown EC site, etc. augmented.
(Unit: %)■Variation in gross profit rate of
the wholesale and retail businesses

Gross profit rate hita record high forboth businesses.
Wholesale

FY2016FY2017FY2018Retail

FY201929

Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:

Wacoal Corp.
OutcomesBusiness efficiency improvement of the wholesale business：Organizational restructuring and fortification (streamlining of the back-office section, improvement ofmobility of sales staff and BA)
Enhancement of profitability of the retail business： Gross profit rate grew significantly, and profit/loss at stores improved (efforts for making all shops in theblack)
Investment in the infrastructure for omni-channel strategies and finished the preparation forpractical application： Operation of a unified information management system (data of inventory, products, and purchase bycustomers)：Development of next-generation services for attending to customers by utilizing 3D body scanners and AI

Realization of a stress-less selling environment with 3D body scanners

30Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:

Wacoal Corp.
Issues

Optimization of the composition of brands, products, and channels for important markets of products
other than innerwear (concentration and selection)： Design of strategies for each category (ladies’ sports, men’s, shoes, personal wear (pajamas), kids’)Redevelopment of the innerwear brand portfolio and reduction of the number of products

To make foreign consumers visiting Japan loyal customers

Drop in profitability of the department store business

Low profitability of the business that suggests lifestyles, apparel, and underwear cultures and beauty(sensibility) (Spiral and traditional townhouses in Kyoto)： To make the business profitable as soon as possible by setting a deadline or design a constructive exit plan◆“Kyo no Ondokoro Fuyacho-nijo”
utilizing a traditional townhouse in Kyoto◆ Spiral, a cultural complex facility

31

Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:

Wacoal International Corp. (The U.S.)
Net salesThe second brand “b.tempt’d” ($6 million below the goal) and “CW-X” ($5 million below the goal) did not grow well.
Our own EC site performed well ($4 million above the goal), but the sales at department stores ($9 million below thegoal) and sports shops ($5 million below the goal) were sluggish.

OperatingincomeMedium-term goal: $176.4 million → Results: $166.7 million($9.7 million (5.5%) below the goal)

Medium-term goal: $19.9 million → Results: $18.9 million($1 million (5.0%) below the goal)

Due to the sales of the CW-X business stagnanted ($1 million below the goal).
As Wacoal America absorbed the U.S. subsidiary of CW-X in March 2018, and its brand business moved into the black forthe first time in FY2019.
As for the “Wacoal” brand business, gross profit rate improved and SG&A was curtailed as the ratio of our own EC sales
increased, attaining the goal.

Outcomes andissuesMid-term Goals(Millions of dollar)

OutcomesIssues■Wacoal’s Own and third party EC Site
■Department store and others

1 To plan and develop high value-added ■ Strengthened design and pattern■ The decline in “b.tempt'd” brandproducts through process engineering, making capabilities
competitivenessand stick to the high-end market■ Established superiority of the■ Business is slow for “CW-X”
strapless bra■ Improved productivity at the factoryin the Dominican Republic
2 To cultivate the surrounding market
and develop new channels■ Canada is on track for meeting midterm goals■ Expanded our own EC site sales■ Made steady progress following the
opening of a directly-managed store in
the U.S.

3 To establish a succession plan and train ■ Planning to launch a new
future leadersorganization in FY2020■ Expand the market in Brazil■ Maintain a business foundation
focused on accelerating our own EC
site sales■ Business in U.S. department storescontinues to decline at a rapid pace
■ Handing over corporate culture andcorporate philosophy

118

131

EC
ratio
29％

EC
ratio
20％

32
FY201649
FY201932

Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:
Wacoal Europe

Net salesAs the “huit” brand was transferred to another company, its sales disappeared. (£5 million below the goal) = exceeding
the goal in real terms“elomi” grew steeply. (£9 million above the goal). “Wacoal” sales reached the goal.
Delayed in starting our own EC site, which was scheduled to be launched in FY2018 (£3 million below the goal). Then,the sales of Fantasie or Freya did not reach the goal.

OperatingincomeMedium-term goal: £101.3 million → Results: £96.8 million(£4.4 million (4.4%) below the goal)

Medium-term goal: £8.4 million → Results: £9.7 million(£1.2 million (14.4%) above the goal)

As the unprofitable “huit” business was discontinued, it improved (£1 million above the goal). But the pound
depreciation, cost augmented.
The recommended retail prices in the U.K. were raised, the inventory valuation loss decreased, and SG&A wascurtailed as the delay in developing our own EC site. Then, operating income was secured.

Outcomes andissuesMid-term Goals
1 Business Restructuring (PMI)-Train staff to be leaders-Maintain and strengthen the businessfoundation■Wacoal’s Own and third party EC Site
■Department store and others

OutcomesIssues■ Rearranged and transferred the■ Innovations for our own EC site
“huit” brand business■ Brexit risks■ Started an organization under a newpresident in Apr. 2016
■ Reorganized and integrated the sales
and distribution system■ Launched a support system forspecialty stores (B2B)

2 To restructure the brand portfolio-To match the characteristics of local
regions and distribution channels■ "elomi" grew remarkably (sales up
91% from FY2016)■ The presence of Wacoal intensified(up 30% from FY2016)■ Expedite growth of a brand for
curvy women■ Falling sales in department storesand specialty stores

3 Product development based on the
results of Human Science ResearchCenter■ Wacoal won DOY (Designer of theYear) at the International LingerieShow■ Implementation to other brands inaddition to Wacoal(Millions of pound)

78

76

EC
ratio
19％

EC
ratio
13％

12
FY201619
FY201933

Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:

Wacoal China
Net salesThe sales of the Wacoal brand via shops and third-party e-commerce sites grew (CNY40 million above the goal). The
sales of PJ, too, increased (CNY27 million above the goal).
LA ROSABELLE for the middle class market was closed down, because business efficiency did not improve (CNY27 million
below the goal).
EC sales achieved the goal of over 80% growth from FY2016 and more than doubled (CNY24 million above the goal).

OperatingincomeMedium-term goal: CNY664.7 million → Results: CNY694.8 million(CNY30.1 million (4.5%) above the goal)

Medium-term goal: CNY59.9 million → Results: CNY54.6 million(CNY5.3 million (8.9%) below the goal)

SG&A rate was reduced, achieving the medium-term goal, but the reduction in cost rate did not reach the goal.
As a result, the ratio of operating income to net sales was 7.9%. (medium-term goal: 9.0%)

Outcomes andissuesMid-term Goals■Wacoal’s Own and third party EC Site
■Department store, others
OutcomesIssues

1 To launch competitive products anddemonstrate superiority in the highend market■ Rapid progress of the “Wacoal”■ Sluggish growth of the “Salute”
brand
brand
-Introduced the comfortable bra to■ Stagnant growth of the “PJ” brandwear and other products sold in Japan■ Improved the share of individualstores instead of opening new locations■ Improved ratios for continuity(standard) products

2 To improve profitability of the LA
ROSABELLE brand■ Decided to slowly withdraw from the ■ Lack of brands targeting younger
brand businessage groups-Closed stores

3 To strengthen online sales byenhancing product development andsales promotion■ Major breakthrough in online sales■ Strengthened the logistics structure■ Developed database marketing andproducts exclusively for online sale

■ Large sales growth of competitor's
products in third-party e-commercesites■ Develop a business foundation thatstays ahead of business expansion■ Strengthen brands and products
targeting younger age groups(Millions of yuan)

552
506

EC
ratio
21％

EC
ratio
12％

67
FY2016143
FY201934

Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:

Peach John

Medium-term goal: ¥13.2 billion → Results: ¥10.49 billion(¥2.71 billion (20.5%) below the goal)
Sluggish sales in the domestic market (our own EC site: ¥2.9 billion below the goal; stores: ¥700 million below thegoal)
The demand for underwear, which strongly reflects trends, decreased, and competitors advertised comfortabletexture. Then, our customers decreased.
The renewal of our own EC site and brand sites turned out to be ineffective. High-priced products, such as
loungewear, did not sell well.

Net salesOperatingincomeMedium-term goal: ¥800 million → Results: -¥220 million*(¥1.02 billion below the goal)
In addition to sluggish sales, rising costs for the improvement of treatment of sales staff for coping with the severe
recruitment situation, rents, and so on had an impact.

influence of changes in transaction conditions for the business in China (¥200 million below the goal)(*In addition, impairment charges on other intangible assets (-¥5.64 billion) was posted, but it was excluded in the results.)
Issues andcountermeasures






High brand equity for influencers in China and East Asia as the fashionable brand from Japan
Valuable brand that has popularity and many supporters throughout Japan, and can trigger a trend inside the
Wacoal group
Possibility of becoming part of “Cool Japan” in the Asian market filled with youngsters who spend a lot
To revitalize our business with new bold endeavors while grasping the minds of consumers andchanges in trend based on the current brand value

35

Comparison, Outcomes and Issues in Relation to the Medium-Term Goals: Ai

Net salesThe performance of swimsuits was sluggish (¥2.6 billion below the goal)
Immediately after the business transfer, medium-term goals were set while excessively
expecting the utilization of sales channels of Wacoal Corp. and EC promotion.
The sales of swimsuits dropped nearly 33% from FY2016, due to the changes in thecompetitive environment and the difficulty in securing sales staff for seasonal stores.

OperatingincomeMedium-term goal: ¥7.3 billion → Results: ¥4.18 billion(¥3.12 billion (42.7%) below the goal)

Medium-term goal: ¥210 million → Results: -¥320 million(¥530 million below the goal)

The underwear shops under the name of “Northerly” ,which directly managed, started handlingmore Wacoal products, and an operating income was posted.

Issues andcountermeasures

We strengthened swimwear for cultivating the “adult resort” market for year-round business,by improving added value while utilizing the outcomes of Human Science Research Center.
Promotion of strategic cooperation with third-party e-commerce sites inside and outside Japan.
Shift to business administration that concentrates on improvement of profitability, in order toseek for improved gross profit rate rather than sales growth.
36Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:

LecienNet sales

Orders for PB innerwear for GMS and supermarkets dropped. (¥1.7 billion below the goal)
The cultivation of the U.S. market for the art/hobby business was not realized. (¥800 million
below the goal). The sales of materials or apparel did not reach the goal.

OperatingincomeMedium-term goal: ¥9.51 billion → Results: ¥6.28 billion(¥3.23 billion (33.9%) below the goal)

Medium-term goal: ¥250 million → Results: -¥380 million(¥630 million below the goal)

As the orders for PB innerwear dropped, the productivity of affiliated factories declined, and cost
augmented.

Issues andcountermeasuresStart of drastic structural reform, including the downsizing to an
appropriate business structure, while foreseeing the future demand37Comparison, Outcomes and Issues in Relation to the Medium-Term Goals:

Nanasai

Net salesAs the orders for remodeling of department stores and new construction works increased, thesales of the construction business exceeded the goal (by 5.8%).
As the demand for sports-wear is growing, sporting mannequins are expected to increase, but
the rental business did not reach the goal (24.3% below the goal).

OperatingincomeMedium-term goal: ¥10.14 billion → Results: ¥9.41 billion(¥730 million (7.2%) below the goal)

Medium-term goal: ¥450 million → Results: ¥280 million(¥170 million (37.3%) below the goal)

Due to the rise in the ratio of the construction business, gross profit rate declined, but SG&A wascurtailed.
Due to the decline in sales and the business composition ratio, the ratio of operating income to
net sales was 3.0% (medium-term goal: 4.4%)

Issues andcountermeasures

To increase the ratio of operating income to net sales while concentrating on the optimizationof the ratios of sales of the existing three businesses (rental, product sale, and construction)
To increase new customers, to compensate for the decrease of shops at department stores,
apparel shops, etc. used as existing customers
38Current Situation of Comprehensive Business Alliance with DESCENTE

DESCENTE has accumulated the knowledge of sports engineering mainly for men.
Both companies have the sincere attitude and passion for manufacturing high-quality products; so wehave similar corporate cultures.
Through collaboration, we can foster a complementary relation for each other’s business. In addition, it
is important to create and offer unprecedented value via products and services, to redevelop trusting
relationships with customers.

Original goals

Progress

1 To create new businesses that go

beyond the current businessdomain2 To develop products thatcombine both companies’
manufacturing strengths
3 To effectively utilize assets■Both companies confirmed their respective intentions tocontinue the business tie-up.
■The tasks and details of the business tie-up are to berediscussed by the two companies while reviewing previous
activities.

owned by both companies

39Forecast for Business Performance and Dividends in the Next Term (FY2020)

Net sales¥200 billion＋3.0%, +¥5.8 billion

Dividend per share¥11 billion

Operating income＋126%, +¥6.1 billion

We plan to pay 80 yen per share, including the dividend for commemorating the 70th
anniversary of the establishment of our company. <40 yen/share for interim and year-end
dividends, respectively (ordinary dividend: 36 yen, special anniversary dividend: 4 yen)>(Millions of yen)

FY2020Full-year
target

FY2019% of netsales

Full-year
results

vs. FY2019% of net
sales

Change% Change

Consolidated net sales

200,000

100%

194,201

100%

5,799

Operating income

11,000

5.5%

4,879

2.5%

6,121 +125.5%

Income before taxes

12,000

6.0%

2,203

1.1%

9,797 +444.7%

Net income attributable to
Wacoal Holdings Corp.

9,000

4.5%

341

0.2%

8,659

+3.0%

ー

*The impact of the changes in the valuation loss orgain on marketable securities and investments to our business results is not reflected in the forecast above.
*Major exchange rates estimated: USD = 110.00 yen; GBP = 145.00 yen; CNY = 16.50 yen

We are designing a mid/long-term strategic vision, while recognizing the 3 years from FY2020 to FY2022 as theperiod for achieving the following three objectives:
1. Achieve strong growth in Japan and overseas
2. Examine the potential of unprofitable businesses and brands, and promote review and structuralreform of group businesses where no business will be safe from such review or structural reform
3. Enhance corporate value by improving economic and social values
We plan to announce a new 3-year medium-term management plan in mid-June, while disclosing the details ofour business strategy in the next term, which is the initial year of the plan.

40Reference Figures41

List of Major Subsidiaries’ FY2019 Business Results(Millions of yen)

Net Sales
FY2018results

FY2019results

FY2019targetOperating Income

Year on Year
ChangeCompared with Target% Change Difference%
Difference

FY2018results

FY2019results

FY2019targetYear on Year

Compared with Target

Change%ChangeDifference%
Difference

Wacoal

104,557 102,356

105,725-2,201- 2.1%-3,369- 3.2%

4,851

5,099

4,100

248

+5.1%

999

+24.4%

Peach John

10,795

10,491

11,396-304- 2.8%-905- 7.9%

441

-220

431

-661

ー

-651

ー

Nanasai

8,278

9,414

8,200

1,136

+13.7%

1,214+14.8%

222

282

180

60

+27.0%

102+56.7%

Lecien

7,215

6,284

8,138

-931

- 12.9%-1,854- 22.8%

73

-375

185

-448

ー

-560

ー

Ai

5,090

4,181

5,550

-909

- 17.9%-1,369- 24.7%

-361

-321

56

40

ー

-377

ー

Wacoal International Corp.
(U.S.)

18,64318,48619,153-157- 0.8%-667- 3.5%

2,042

2,095

1,925

53

+2.6%

170

+8.8%

Wacoal Europe Ltd.

14,018

14,106

14,843

88

+0.6%

-737

- 5.0%

1,226

1,407

898

181

+14.8%

509+56.7%

Wacoal China Co., Ltd.

10,586

11,617

11,764

1,031

+9.7%

-147

- 1.2%

519

913

646

394

+75.9%

267+41.3%

Major Overseas Subsidiaries (Local Currency Basis)
Wacoal International Corp.
(U.S.)

168,184 166,679

174,114-1,505- 0.9%-7,435- 4.3%

18,41818,90017,500

482

+2.6%

1,400

+8.0% (USD'000)

Wacoal Europe Ltd.

95,342

96,826

98,951

1,484

+1.6%

-2,125- 2.1%

8,339

9,658

5,987

1,319

+15.8%

3,671+61.3% (GBP'000)

Wacoal China Co., Ltd.

636,504 694,776

692,000

58,272

+9.2%

2,776

+0.4%

31,29554,59438,00023,299+74.4%

16,594+43.7% (CNY'000)(USD1=JPY110.91, GBP1=JPY145.68, CNY1=JPY16.72, HKD1=JPY14.09)

42

Comparison with the Medium-Term Management Plan
(Overview of Major Companies)(Millions of yen)

Net Sales
FY2016
results

FY2019results

Target ofMedium-termManagement
Plan

Operating Income

Year on Year
ChangeCompared with Target% Change Difference%
Difference

FY2016 FY2019
results results

Target ofMedium-termManagement
Plan

Year on Year

Compared with Target

Change%ChangeDifferenc%
DifferenceeWacoal107,907 102,356

110,000-5,551- 5.1%-7,644- 6.9%

6,743

5,099

5,200

-1,644- 24.4%-101- 1.9%

Peach John

11,19010,491

13,200-699- 6.2%-2,709- 20.5%

258

-220

800

-478

ー

-1,020ーNanasai

8,878

9,414

10,142

536

+6.0%

-728

- 7.2%

306

282

450

-24

- 7.8%-168- 37.3%

Lecien

8,948

6,284

9,512

-2,664- 29.8%-3,228- 33.9%

-41

-375

250

-334

ー

-625

ー

Ａｉ

5,691

4,181

7,300

-1,510- 26.5%-3,119- 42.7%

11

-321

210

-332

ー

-531

ー

Wacoal International Corp.
(U.S.)

19,571

18,486

19,400-1,085- 5.5%-914- 4.7%

2,491

2,095

2,200

-396

- 15.9%-105- 4.8%

Wacoal Europe Ltd.

15,89914,106

16,200-1,793- 11.3%-2,094- 12.9%

1,029

1,407

1,350

378

+36.7%

57+4.2%

Wacoal China Co., Ltd.

11,052

11,617

11,300

565

+5.1%

317

+2.8%

487

913

1,020

426

+87.5%-107- 10.5%Major Overseas Subsidiaries (Local Currency Basis)
Wacoal International Corp.
(U.S.)

162,904 166,679

176,364

3,775

+2.3%

-9,685- 5.5%

20,731 18,900

19,900-1,831- 8.8%-1,000- 5.0% (USD'000)

Wacoal Europe Ltd.

87,687

96,826

101,250

9,139+10.4%-4,424- 4.4%

5,674

9,658

8,440

3,984

+70.2%

1,218+14.4% (GBP'000)

Wacoal China Co., Ltd.

575,010 694,776

664,706

119,766+20.8%

30,070+4.5%

25,341 54,594

59,90029,253 +115.4%-5,306- 8.9% (CNY'000)【Exchange rate】

USD1

GBP1

CNY1

FY2018results

JPY120.14 JPY181.31

JPY19.22

At the time of
mid-term plan
formulation

JPY110.00 JPY160.00

JPY17.00

FY2019results

JPY110.91 JPY145.68

JPY16.72

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Comparison with Medium-Term Goals(Millions of yen)

FY2018results

FY2019results

FY2019targetCompared with Target

Year on Year
Change% Change

Difference% Difference

Consolidated net sales

202,917

194,201

215,000-8,716- 4.3%-20,799- 9.7%

Operating income（％）

13,865

4,879

15,000-8,986- 64.8%-10,121- 67.5%

+6.8%

+2.5%

+7.0%

Net income attributable to
Wacoal Holdings Corp.

11,159341

11,000-10,818- 96.9%-10,659- 96.9%Reference figure (i): Operating
income not taking into account
impairment charges on goodwill
and other intangible assets

13,865 10,713（*）

15,000-3,152- 22.7%-4,287- 28.6%(*) 10,713＝Operating income (4,879) + Impairment charges on goodwill and other intangible assets (5,834)

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Information within this document with respect to business plans, forecasts, strategies andother statements, including business performance figures, is based on Wacoal’s
assumptions in the light of the information currently available, and in no way precludes
the uncertainties and risks inherent in these forward-looking statements. Furthermore,actual business results may, as a result of numerous factors, differ significantly from thoseexpressed in statements in this document.

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