[Translation]

Consolidated Business Results for the First Quarter of the Fiscal Year Ending March 31, 2024

[IFRS]

August 9, 2023

Listed Company: Wacoal Holdings Corp.

Stock Exchange: Tokyo

Code Number: 3591

(URL:https://www.wacoalholdings.jp/)

Representative: (Position) Representative Director, President and CEO

(Name)

Masaaki Yajima

For Inquiries: (Position) Corporate Officer, Head of Corporate Planning Dept.

(Name)

Katsuya Hirooka

Scheduled quarterly report submission date:

August 14, 2023

Tel: +81 (075) 682-1010

Scheduled dividend payment start date:

-

Supplementary materials regarding quarterly business results:

Yes

Explanatory meeting regarding quarterly business results:

Yes (for institutional investors, analysts and the press)

(Amounts less than 1 million yen have been rounded)

1. First Quarter of the Fiscal Year Ending March 31, 2024 (April 1, 2023 - June 30, 2023)

  1. Consolidated Business Results

(% indicates increase (decrease) from the corresponding period of the previous fiscal year)

Revenue

Business

Operating

Profit Before

Profit

Profit

Profit

Income Taxes

Millions of Yen

%

Millions of Yen

%

Millions of Yen

%

Millions of Yen %

Millions of Yen

%

First Quarter

ended June 30,

48,789

(0.5)

2,371

(0.3)

2,727

10.4

4,004

11.8

2,885

16.6

2023

First Quarter

ended June 30,

49,027

15.5

2,378

21.2

2,469

0.5

3,580

23.4

2,474

-

2022

Net Profit

Total

Basic Earnings

Diluted Earnings

Attributable to

Comprehensive

per Share

per Share

Owners of Parent

Income

Millions of Yen

%

Millions of Yen

%

Yen

Yen

First Quarter

ended June 30,

2,844

18.0

13,222

59.6

49.03

48.82

2023

First Quarter

ended June 30,

2,411

-

8,286

-

39.28

39.12

2022

(Note) 1. Business profit is calculated by subtracting cost of sales, and selling, general and administrative expenses from revenue.

2. Following the adoption of IAS 12 Income Taxes (as amended in May 2021), the figures for the first quarter ended June 30, 2022 represent the retrospectively adjusted figures. The percentage change in profit, net profit attributable to owners of parent and total comprehensive income compared to the corresponding period of the previous fiscal year is not shown.

- 1 -

  1. Consolidated Financial Condition

Equity Attributable to

Ratio of Equity

Total Assets

Total Equity

Attributable to

Owners of Parent

Owners of Parent

Millions of Yen

Millions of Yen

Millions of Yen

%

As of June 30, 2023

296,731

224,369

220,907

74.4

As of the end of Fiscal

285,659

213,482

210,197

73.6

Year (March 31, 2023)

(Note) Following the adoption of IAS 12 Income Taxes (as amended in May 2021), the figures for the fiscal year ended March 31, 2023 represent the retrospectively adjusted figures.

2.

Status of Dividends

Annual Dividend

End of First

End of Second

End of Third

Year-End

Total

Quarter

Quarter

Quarter

Yen

Yen

Yen

Yen

Yen

Fiscal Year Ended March 31, 2023

-

40.00

-

40.00

80.00

Fiscal Year Ending March 31, 2024

-

Fiscal Year Ending March 31, 2024

50.00

-

50.00

100.00

(Estimates)

(Note)

Revision of estimated dividends announced

during the latest quarter: No

3. Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)

(% indicates increase (decrease) from the previous fiscal year with respect to "Annual" and from the six-month period ended September 30, 2022 with respect to "Six-month Period Ending September 30, 2023")

Profit Before

Net Profit

Basic Earnings

Revenue

Business Profit

Operating Profit

Attributable to

Income Taxes

Owners of

per Share

Parent

Millions of Yen %

Millions of Yen %

Millions of Yen

%

Millions of Yen

%

Millions of Yen %

Yen

Six-month

Period Ending

103,000

5.6

4,500

3.6

4,400

10.0

5,500

(6.5)

3,900

(7.5)

67.23

September 30,

2023

Annual

205,000

8.7

6,000

46.3

6,000

-

7,000

-

4,800

-

82.74

(Note)

Revision

of forecast of

consolidated business

results announced

during the latest

quarter:

No

- 2 -

Notes

  1. Changes in significant subsidiaries in the consolidated cumulative first quarter of the current fiscal year (i.e. changes in specified subsidiaries (tokutei kogaisha) which involve change in scope of consolidation): None
  2. Changes in accounting policies and/or accounting estimates:
    1. Changes in accounting policies required by IFRS: Yes
    2. Changes in accounting policies other than (i) above: None
    3. Changes in accounting estimates: None

(Note) For details, please see "2. Condensed Quarterly Consolidated Financial Statements and Accompanying Notes - (5) "Notes to Condensed Consolidated Financial Statements (Changes in Accounting Policies)" on page 16 of the attached materials.

  1. Number of Issued Shares (Common Stock)

First Quarter ended

Fiscal Year ended

June 30, 2023

March 31, 2023

  1. Number of issued shares (including

treasury stock) as of the end of:

61,000,000 shares

64,500,000 shares

  1. Number of shares held as treasury

stock as of the end of:

2,989,790 shares

6,487,185 shares

  1. Average number of shares during

consolidated first quarter (first

58,010,347 shares

61,372,313 shares

quarter ended June 30):

*These quarterly financial statements are exempt from the review procedures.

*Cautionary Statement regarding Forecast of Business Results

(Cautionary note on forward-looking statements)

The forecast of business results is based on reasonable information we obtained as of the date hereof and, due to various risks, uncertainties and other factors arising in the future, actual results in the future may differ largely from the estimates set out in this document. For notes on conditions used for the forecast of business results and cautionary statements regarding forecast of business results, please see "1. Qualitative Information regarding Consolidated Performance during the First Quarter - (3) Qualitative Information regarding Forecast of Consolidated Business Results" on page 9 of the attached materials.

- 3 -

Table of Contents for Attached Materials

1.

Qualitative Information regarding Consolidated Performance during the First Quarter ---------------------

5

(1)

Qualitative Information regarding Consolidated Business Results ----------------------------------------------

5

(2)

Qualitative Information regarding Consolidated Financial Condition ------------------------------------------

8

(3)

Qualitative Information regarding Forecast of Consolidated Business Results ---------------------------------

9

2.

Condensed Quarterly Consolidated Financial Statements and Accompanying Notes ------------------------

10

(1)

Condensed Quarterly Statement of Financial Position -----------------------------------------------------------

10

  1. Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated

Statement of Comprehensive Income ------------------------------------------------------------------------------

12

(3)

Condensed Quarterly Consolidated Statement of Changes in Equity ------------------------------------------

14

(4)

Condensed Quarterly Consolidated Statement of Cash Flows --------------------------------------------------

15

(5)

Notes to Condensed Quarterly Consolidated Financial Statements --------------------------------------------

16

(Notes on Going Concern) -------------------------------------------------------------------------------------------

16

(Changes in Accounting Policies) --------------------------------------------------------------------------------

16

(Segment Information) -----------------------------------------------------------------------------------------------

17

- 4 -

1. Qualitative Information regarding Consolidated Performance during the First Quarter

  1. Qualitative Information regarding Consolidated Business Results
    1. Performance Overview of the Three Months ended June 30, 2023

(Millions of Yen)

Previous Consolidated

Current Consolidated

Increased/(Decreased) from

Cumulative First

Cumulative First

previous consolidated

Quarter

Quarter

cumulative

(From April 1, 2022 to

(From April 1, 2023 to

first quarter

June 30, 2022)

June 30, 2023)

Amount

Amount

Amount

%

Revenue

49,027

48,789

(238)

(0.5)

Cost of sales

20,346

20,939

+593

+2.9

Gross profit

28,681

27,850

(831)

(2.9)

Selling, general and administrative expenses

26,303

25,479

(824)

(3.1)

Business profit

2,378

2,371

(7)

(0.3)

Other income

608

446

(162)

(26.6)

Other expenses

517

90

(427)

(82.6)

Operating profit

2,469

2,727

+258

+10.4

Finance income

986

1,020

+34

+3.4

Finance expense

77

79

+2

+2.6

Share of profit of investments accounted for using

202

336

+134

+66.3

equity method

Profit before income taxes

3,580

4,004

+424

+11.8

Net profit attributable to owners of parent

2,411

2,844

+433

+18.0

Business environment surrounding our group during the current consolidated cumulative first quarter (April 1, 2023 - June 30, 2023) was challenging due to sluggish sales of our core brands resulting from selective spending by our customers against the backdrop of the rising inflation as well as a significant rise in raw material costs. In overseas, our business in Europe continued to show strong performance on the back of growing support from the customers for our core brands. On the other hand, sales from our business in China fell short of our expectations as the number of customers visiting our retail stores remained sluggish, despite an improvement from the corresponding period of the previous fiscal year, which was significantly impacted by the coronavirus pandemic ("COVID-19"). In the United States, although there were signs of a recovery in consumption along with a calming of inflation rate, our sales fell short of our expectations due to the impact of inventory adjustments by suppliers and sluggish sales of certain brands.

Under such circumstances, our group is moving forward with our initiatives to "rebuild brand and customer strategies" as well as to "accelerate cost structure reform" for our domestic business, and to "strengthen e-commerce business" as well as to "enhance product capabilities that meet the characteristics of each market" for our overseas business, in order to "improve profitability and capital efficiency", which we have set as one of our priority issues for the current consolidated fiscal year. In addition, we plan to disclose our policies, goals and/or management indicators, specific initiatives and timeframe for implementation of the initiatives to improve the price-to-book ratio in around mid-November 2023.

As a result of the above, for the current consolidated cumulative first quarter, consolidated revenue was

48.79 billion yen (a decrease of 0.5% as compared to the corresponding period of the previous fiscal year), and the consolidated business profit was 2.37 billion yen (a decrease of 0.3% as compared to the corresponding period of the previous fiscal year). We recorded a consolidated operating profit of 2.73 billion yen (an increase of 10.4% as compared to the corresponding period of the previous fiscal year) primarily due to the reversal of one-time expenses recorded as other expenses during the corresponding period of the previous fiscal year in connection with the liquidation of a subsidiary. Consolidated profit before income taxes was 4.00 billion yen (an increase of 11.8% as compared to the corresponding period of the previous fiscal year) and consolidated net profit attributable to owners of parent was 2.84 billion yen (an increase of 18.0% as compared to the corresponding period of the previous fiscal year).

- 5 -

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Wacoal Holdings Corporation published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 07:26:05 UTC.