Slides
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FY2025 Third Quarter Business Results Presentation February 10, 2025 ＜Securities Code：3591＞
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2 CONTENTS 1. FY2025 3Q Financial Overview 2. Finance and Shareholder Returns 3. Progress of Revised Medium-Term Management Plan • Initiatives at Wacoal Holdings Corp. (Overseas Business) • Initiatives at Wacoal Corp. (Domestic Business) 4. Reference data ・・・P .3 ・・・P .17 ・・・P .20 ・・・P .22 ・・・P .26 ・・・P .33
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3 1. FY2025 3Q Financial Overview 2. Finance and Shareholder Returns 3. Progress of Revised Medium-Term Management Plan • Initiatives at Wacoal Holdings Corp. (Overseas Business) • Initiatives at Wacoal Corp. (Domestic Business) 4. Reference data
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4 YoY -7.9 billion（-5.6%） Revised plan difference -1.5 billion（-1.1%） Executive Summary for FY2025 3Q (Apr-Dec) Significantly exceeded the previous year due to the recording of gains on the sale of the Asakusabashi Building and the former Fukuoka Office site as "other income" Revenue 133.5 billion yen Operating Profit 11.1 billion yen Business Profit 1.4 billion yen YoY -3.5 billion（-70.9%） Revised plan difference +1.0 billion（+260.8%） YoY +13.1 billion（-) Revised plan difference +1.1 billion（+10.8%） Due to the planned revenue decrease in the domestic business from the revised medium-term management plan and sluggish performance in key countries, revenue fell below both the previous year and the revised plan ➢ Japan: Sales remained sluggish due to strategic store withdrawals, and delivery adjustments, as well as a decrease in customer numbers ➢ Unprofitable businesses: Revenue decreased by approx. ¥6 billion due to the stock transfer of Nanasai and IO*‘s business withdrawal from the U.S. business *Intimates Online, Inc. Hereinafter referred to as IO. Despite the impact of decreased revenue, gross profit ratio improved from the previous year Exceeded the revised plan due to domestic cost control ➢ Gross profit: Withdrawals of unprofitable businesses and strong performance in Europe contributed to an improved consolidated gross profit ratio ➢ Expenses: While advertising costs increased domestically, other cost controls were successful
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5 results ratio results ratio YoY revised plan progress ratio Revenue 141,407 100.0% 133,534 100.0% 94.4% 73.8% Wacoal Business (Domestic) 72,561 51.3% 68,764 51.5% 94.8% 74.5% Wacoal Business (Overseas) 50,308 35.6% 50,001 37.4% 99.4% 72.2% Peach John Business 8,066 5.7% 7,846 5.9% 97.3% 71.7% Other 10,472 7.4% 6,923 5.2% 66.1% 81.9% Gross Profit 79,561 56.3% 75,420 56.5% 94.8% 74.2% SG&A 74,605 52.8% 73,977 55.4% 99.2% 71.0% Business Profit 4,956 3.5% 1,443 1.1% 29.1% - Wacoal Business (Domestic) 2,630 1.9% -254 -0.2% - - Wacoal Business (Overseas) 2,008 1.4% 1,500 1.1% 74.7% 73.2% Peach John Business 257 0.2% 33 0.0% 12.8% - Other 61 0.0% 164 0.1% 268.9% - Operating Profit -1,981 -1.4% 11,075 8.3% - 230.7% Profit Attributable to Owners of Parent -3,903 -2.8% 9,086 6.8% - 201.9% FY2024 3Q FY2025 3Q FY2025 3Q (Apr-Dec) Results (Millions of yen)
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6 Revenue and Business Profit for FY2025 3Q Revenue YoY -7.9（-5.6％） Revised plan difference -1.5（-1.1％） YoY -3.7（-6.0％） Revised plan difference +0.1（+0.2％） Gross Profit YoY -4.1（-5.2％） Revised plan difference -1.6 （-2.1％） SG&A ratio 55.4% YoY+2.6％ Revised plan difference -1.4％ YoY -0.6（-0.8％） Revised plan difference -2.7（-3.5％） Business Profit Business Profit ratio 1.1% YoY-2.4％ Revised plan difference +0.8％ Gross Profit ratio 56.5% YoY +0.2％ Revised plan difference -0.6％ YoY -3.5（-70.9％） Revised plan difference +1.0 （+260.8％） Revenue YoY Revised plan difference Wacoal business(Japan) -3.80 -1.24 Wacoal business(Overseas) -0.31 -0.20 Peach John business -0.22 -0.15 Other businesses -3.55 +0.12 Business Loss YoY Revised plan difference Wacoal business(Japan) -2.88 +0.63 Wacoal business(Overseas) -0.51 +0.20 Peach John business -0.22 +0.08 Other businesses +0.10 +0.13 Gross Profit ratio FY2024 3Q FY2025 3Q Results ratio ratio change Wacoal 56.2% 55.7% -0.5% Peach John Domestic only 61.4% 58.3% -3.1% Wacoal International Corp. (U.S.) 49.7% 48.9% -0.8% Wacoal Europe Ltd. *1*2 58.1% 59.9% +1.8% Wacoal China Co., Ltd. 69.6% 68.3% -1.2% SCA ratio FY2024 3Q FY2025 3Q Results ratio ratio change Wacoal 53.5% 55.8% +2.3% Peach John Domestic only 57.6% 58.7% +1.1% Wacoal International Corp. (U.S.) 47.4% 44.5% -2.9% Wacoal Europe Ltd. *1*2 51.2% 57.2% +6.0% Wacoal China Co., Ltd. 73.0% 75.3% +2.2% Cost of sales SG&A expenses 133.5 58.1 75.4 7.40 1.4 *1: The gross profit ratio of Wacoal Europe for the current fiscal year includes the impact of the acquisition of Bravissimo *2: The SG&A ratio for Wacoal Europe for both the current and previous fiscal year includes WEL brand amortization costs （Billions of yen）
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7 FY2025 3Q Profit impact items YoY -0.2 Revised plan difference +0.5 YoY +16.6 Revised plan difference +0.0 YoY +13.1 （－） Revised plan difference +1.1 （+10.8％） YoY +14.7 （－） Revised plan difference +1.3 （+10.7％） YoY +1.8 Revised plan difference +0.5 YoY +12.9 （ー） Revised plan difference +0.9 （+10.5％） YoY +13.0 （ー） Revised plan difference +0.8 （+10.1％） YoY +1.8 Revised plan difference 0.0 YoY -0.1 Revised plan difference +0.0 YoY -3.5 （-70.9％） Revised plan difference +1.0 （+260.8％） 1.4 9.6 11.1 1.4 0.7 13.1 4.2 9.0 0.1 9.1 Business Profit Operating Profit Profit before tax Profit Profit Attributable to Owners of Parent Other income and expenses Finance income and costs Profit and loss from equity method investments Income tax expenses Non-controlling interests Current fiscal year: Gain on sale of Asakusabashi Building ¥1.4 billion Gain on sale of former Fukuoka Office site ¥7.7 billion Total ¥9.1 billion Previous fiscal year: Impairment loss ¥7.4 billion for U.S. business Due to increase in pretax profit Previous fiscal year: ¥1.3 billion investment impairment of Shinyoung Wacoal, Korea ➢ Operating Profit： Increased significantly compared to the same period of the previous year due to the recording of gains on the sale of the Asakusabashi Building and former Fukuoka Office site （Billions of yen）
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8 -4.0 -2.9 -0.3 1.8 -1.3 -1.0 3.4 -3.8 -0.2 0.4 0.1 0.0 0.2 -1.2 0.1 0.1 0.0 0.5 0.7 1.0 141.4 133.5 135.0 (Reference) FY2025 3Q Increase/Decrease in Revenue (YoY and vs the revised plan) Europe (Excluding Bravissimo) PJ PJ China Nanasai China US Japan US Japan Nanasai · Withdrawal of underperforming stores and delivery adjustment · Impact of the closure of mass retailers ・Weak performance in Wacoal and Wing brands IO's withdrawal from the business,etc.-2.1 Weak performance in department stores, malls/outlets, and third-party EC UK's slump （Billions of yen） Bravissimo Europe (Excluding Bravissimo) Bravissimo Acquired at the end of September 2024 Weak performance in Wacoal and Wing brands Current year Previous year Revised plan Decrease vs FY2024 3Q About a ¥ 7.9 billion Short of FY2025 3Q revised plan About a ¥ 1.5 billion G-Tech, Hong Kong Wacoal and others Excluded from consolidation after 2Q Other overseas Corporations FX Impacts Other subsidiaries and account Adjustments Other subsidiaries and account Adjustments FX Impacts Other overseas Corporations Weak performance in department stores, business partner EC, and own EC
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9 -1.9 0.2 -0.8 -0.2 -0.1 0.1 -0.2 -1.0 -0.2 -0.1 0.0 -0.3 0.0 0.0 0.2 -0.1 -0.5 5.0 0.3 1.4 0.4 (Reference) FY2025 3Q Increase/Decrease in Business profit (YoY and vs the revised plan) (Billions of yen) PJ PJ China China US US Japan Japan ・Timing differences in the expense plan ・Reduction of other expenses, etc. Gross profit -2.7 SG&A expenses reduced +0.8 Aggressively invested in advertising to acquire new customers · Elimination of intergroup transactions · Retirement/severance allowance adjustments, etc. Elimination of intergroup transactions, etc. Bravissimo Europe (Excluding Bravissimo) Europe (Excluding Bravissimo) Bravissimo Temporary expenses associated with the acquisition Elimination of profits on inventory assets, etc. Vietnam, Dalian, etc. Decrease vs FY2024 3Q About a ¥ 3.5 billion Above FY2025 3Q revised plan About a ¥ 1.0 billion Current year Previous year Revised plan Other overseas Corporations Other overseas Corporations FX Impacts FX Impacts Other subsidiaries and account Adjustments Other subsidiaries and account Adjustments Profit improvement due to IO's withdrawal from the business
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10 Operating CF 4.9 Investing CF 5.7 33.5 Financing CF -15.3 Effect of exchange rate changes on cash and cash 0.6 29.3 FY2025 3Q –Consolidated Statement of Cash Flows ➢ Proceeds from sales of fixed assets ➢ Proceeds from the transfer of Nanasai shares ➢ Proceeds from sales of cross-shareholdings ➢ Payments for the acquisition of Bravissimo Group ➢ Yen depreciation from the beginning to the ending rate (Billions of yen) ➢ Payments for repurchase of treasury shares ➢ Payments for dividend distribution ➢ Payments for repayment of lease obligations (rent payments, etc.) ➢ Proceeds from borrowings ➢ Profit income（￥9.0 billion） ➢ Adjustments for depreciation and gains on sales of fixed assets, etc. ➢ Payments for income tax Cash and cash equivalents at End of period Cash and cash equivalents at beginning of period
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11 FY2025 End of Dec. – Consolidated Statement of Financial Position (Billions of yen)End of March 2024 Ratio End of December 2024 Ratio Change Cash and cash equivalents 33.5 29.3 -4.2 Trade and other receivables 22.1 18.5 -3.6 Inventories 50.0 53.1 3.1 Other 6.5 9.3 2.8 Total current assets 112.1 38.1% 110.2 38.4% -1.9 Tangible fixed assets, intangible assets and right-of-use assets 68.8 66.7 -2.1 Goodwill 11.8 17.1 5.3 Other financial assets 54.5 46.1 -8.4 Other 46.8 46.6 -0.2 Total non-current assets 181.9 61.9% 176.5 61.6% -5.4 Total assets 294.0 286.7 -7.3 End of March 2024 Ratio End of December 2024 Ratio Change Trade and other payables 17.4 14.5 -2.9 Borrowings 9.1 15.0 5.9 Lease liabilities 11.5 12.3 0.8 Deferred tax liabilities 16.9 16.2 -0.7 Other 24.0 21.4 -2.6 Total liabilities 78.9 26.8% 79.4 27.7% 0.5 Total equity attributable to owners of parent company 211.8 204.1 -7.7 Noncontrolling interests 3.3 3.3 0.0 Total equity 215.1 73.2% 207.4 72.3% -7.7 Total liabilities and equity 294.0 286.7 -7.3 ② ➀ ③ ⑥ ④ ③ Goodwill increased due to acquisition of Bravissimo Group (+4.8) ① Inventories increased due to acquisition of Bravissimo Group (+3.0) ④ Decrease due to the decline and sales in market value of cross-shareholdings ⑦ Decreased due to repurchase of treasury shares ⑥ Increased borrowings due to acquisition of Bravissimo Group ② Due to the reduction in fixed assets related to Nanasai ⑤ Decrease in accrued liabilities related to early retirement ⑦ ⑤
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12 FY2025 3Q Overview of Wacoal (Japan) Business Loss -0.3 billion yen ＜YoY＞-￥2.9 billion（ー） ＜Revised plan difference ＞ +￥0.6 billion（ー） Revenue 68.8 billion yen ＜YoY＞-￥3.8 billion（-5.2％） ＜Revised plan difference ＞ -￥1.2 billion（-1.8％） Conditioning wear brand「CW-X」 Wireless Bra「GOCOCi」 Note: The performance report for major subsidiaries is noted in the reference materials (P40~) The EC business was solid, despite a decreased revenue due to structural reform measures and a decrease in the number of customers visiting stores ➢ Revenue fell below both the previous year and the revised plan due to the withdrawal from underperforming stores as well as lower number of customers visiting stores ➢ Both own EC and third-party EC businesses maintained steady growth ➢ Delivery adjustments aimed at optimizing inventory levels significantly reduced in-store inventory compared to the previous year ➢ Growth in "CW-X" and "GOCOCi" brands (see p. 31- for details) Business profit decreased due to impact of decreased revenue and rising cost, but exceeded the revised plan due to postponement and reduction of some expenses ➢ Profit decreased due to the impact of lower revenue, the depreciation of the yen, and the rising cost of raw materials ➢ Growth in EC channels and reduced returns kept the gross profit ratio in line with the revised plan ➢ Advertising costs for growth strategies exceeded the previous year ➢ Business profit exceeded the revised plan due to postponement and reduction of some expenses
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13 7.3 6.5 7.1 11.4 11.5 11.8 1.4 1.6 1.6 1.8 1.7 1.6 2.8 2.6 2.6 2.6 2.5 2.64.3 3.4 3.6 3.7 3.1 3.44.9 4.4 4.4 4.3 4.3 4.10.8 0.3 0.3 0.4 0.3 0.4 18.8 17.2 15.7 15.6 14.1 13.0 FY2020 3Q FY2021 3Q FY2022 3Q FY2023 3Q FY2024 3Q FY2025 3Q Changes in SG&A expenses at Wacoal Corp. Compared to FY2024 3Q reduction in SG&A expenses 0.86 billion yen 40.4 （50.4％） 36.0 （56.5％） 35.4 （56.2％） 37.7 （53.8％） -1.6 -0.5 -0.9 -0.2 -0.8 -0.5 39.8 （56.2％） -1.5 +0.2 +0.6 -0.1 -0.1 +4.3* -1.5 -0.6 -0.1 ＋0.1 36.9 （55.9％） -1.1 +0.3 -0.1 First year of Revised Medium- Term Management Plan -0.2 ■Personnel costs ■Travel costs ■Advertising costs ■Packing/shipping ■Depreciation cost ■Others* +0.2 -0.1 +0.1 +0.1 +0.1 +0.3 ■Asset rentals +0.2 *Based on Wacoal Corp. data only. （billions of yen） IFRSU.S. Accounting Standards *Reasons for increase from previous year: PC switching costs, contract costs for consulting and outsourcing, etc. *impact of the change in revenue recognition Continued cost control in response to sales trends, in addition to promoting cost structure reforms ➢Despite the deteriorated SGA ratio due to sluggish topline results, costs were reduced from the previous year as a result of cost structure reforms, including lower personnel costs through voluntary retirement, and the closure of unprofitable stores that reduced asset rents ➢While continuing to control advertising costs based on sales, balanced investment is continued
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14 ➢ The profit improvement effect of IO’s business withdrawal was $5.9 million (IO's business loss in the same period of the previous year). ➢ Although the profit margin improved in Europe, acquisition costs and inventory consolidation adjustments pressured business profit ➢ Europe：Bravissimo, acquired in September 2024, drove growth through own EC and retail stores. The European continent grew, particularly in Germany and France ➢ US ：Physical store sales declined due to the restraint on purchases by some of our wholesale customers. Third-party EC remained strong, especially on major platforms ➢ China：Despite ongoing initiatives, both physical stores and EC underperformed FY2025 3Q Overview of Wacoal (Overseas) Business Profit 1.5 billion yen ＜YoY＞-￥5 billion（-25.3％） ＜Revised plan difference ＞ +￥2 billion（+15.4％） Revenue 50.0 billion yen ＜YoY＞-￥3 billion（-0.6％） ＜Revised plan difference ＞ -￥2 billion（-0.4％） Subsidiary FY2025 3Q YoY YoY change Revised plan difference Revised plan change Wacoal International Corp. (U.S.) 196 -17 -8.2% -4 -1.9% Wacoal Europe Ltd. (Including Bravissimo） 175 +29 +20.3% 0 +0.0% Wacoal China Co., Ltd. 68 -9 -12.2% +1 +2.0% （Billions of yen） （Billions of yen） Subsidiary FY2025 3Q YoY YoY change Revised plan difference Revised plan change Wacoal International Corp. (U.S.) 9 +4 +78.9% +1 +14.5% Wacoal Europe Ltd. (Including Bravissimo） 5 -5 -53.4% -2 -30.7% Wacoal China Co., Ltd. -5 -2 - 0 - Revenue in Japanese yen Note: The performance report for major subsidiaries is noted in the reference materials (P40~) IO's business withdrawal improved profits in the U.S., but costs related to the acquisition of Bravissimo and sluggish sales in China had a negative impact While revenue declined in the U.S. and China, Bravissimo, acquired last year, and the European continent showed a growth trend Business profit(loss) in Japanese yen
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15 FY2025 3Q Overview of Peach John/ Overview of other Businesses Revenue 7.8 billion yen ＜YoY＞-￥2 billion（-2.7％） ＜Revised plan difference ＞ -￥2 billion（-1.9％） Overview of Peach John Business Profit 0.03 billion yen ＜YoY＞-￥2 billion（-87.2％） ＜Revised plan difference ＞ +￥1 billion（ー） Overview of other Businesses Revenue 6.9 billion yen ＜YoY＞-￥35 billion（-33.9％） ＜Revised plan difference ＞ +￥1 billion（+1.8％） Business Profit 0.2 billion yen ＜YoY＞+￥1 billion（168.9％） ＜Revised plan difference ＞ +￥1 billion（+446.7％） Lecien ➢ Revenue increased due to steady sales of our own brands and embroidery, etc. Ai ➢ Profit increased due to a higher EC ratio Nanasai ➢ Excluded from consolidation from 2Q *Impact of decreased revenue was ¥3.8 billion Note: The performance report for major subsidiaries is noted in the reference materials (P40~) Customer numbers increased due to the effects of sales promotion measures in 1H 3Q performance exceeded the previous year Despite revenue decline due to the exclusion of Nanasai from consolidation, strong performance from other companies contributed to profit growth, exceeding the revised plan Domestic ➢ Third-party EC continued to be steady ➢ Own EC improved customer acquisition ➢ Strengthened sales capabilities of retail stores Overseas ➢ Revenue in Taiwan and Hong Kong declined due to sluggish sales growth especially in physical stores
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16 8.1 11.2 11.6 12.6 13.9 14.5 3.6 5.1 4.8 4.3 3.6 3.6 4.7 6.0 7.2 8.6 8.9 8.3 1.3 2.5 2.7 2.6 1.5 0.0 2.1 1.8 3.1 4.1 4.8 5.6 1.7 1.7 1.6 1.6 1.5 1.4 FY2020 3Q FY2021 3Q FY2022 3Q FY2023 3Q FY2024 3Q FY2025 3Q Wacoal China Wacoal Europe※ IO Inc. Wacoal America Peach John (Japan) Wacoal (Japan) 21.6 （18.7％） 28.3 （28.6％） 31.1 （28.0％） ＋38％ （Billions of yen） Growth rate ＋31.1％ Growth rate ＋9.9％ ＋43％ ＋27％ -13％ -3％ Wacoal (Japan) +10.1% Peach John (Japan) +0.1% Wacoal America +9.9% Wacoal Europe +17.9% Wacoal China -4.0% Total EC sales CAGR FY2020 3Q- FY2025 3Q ＋7.5％ The ratio for EC to total sales at the five major companies is 29.4% Although sales size have shrunk due to the business withdrawal of IO, the EC ratio level of the top five companies has been maintained ➢ EC ratio for FY2025 3Q ： Wacoal 22％、Peach John 50％、Wacoal America 45％、Wacoal Europe 34%、Wacoal China 26％ 33.6 （27.2％） Growth rate ＋8.2％ Japanese yen basis (including foreign exchange effects) Growth rate 1.7％ +4％ -6％ ＋19％ ＋72％ -3％ ＋8％ -11％ ＋19％ +30％ -5％ +11％ -16％ +4％ +17％ -2％ 34.2 （28.3％） Growth rate -2.4％ 33.4 （29.4％） ＋4％ -1％ -6％ +18％ -10％ ＋90％ +9% -5％ -42％ Progress of EC Business * Created on the basis of data before consolidation adjustment. * Foreign exchange rate at a settlement term was used (including foreign exchange effects) * Revised aggregation method for Wacoal and Peach John from the current period (retroactive modification) *Wacoal Europe： Including Bravissimo
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17 1. FY2025 3Q Financial Overview 2. Finance and Shareholder Returns 3. Progress of Revised Medium-Term Management Plan • Initiatives at Wacoal Holdings Corp. (Overseas Business) • Initiatives at Wacoal Corp. (Domestic Business) 4. Reference data
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18 Financial Policies during the Revised Medium-term Management Plan Period：FY2024～FY2026 1. Improving profitability through business model reforms and growth strategies as a top priority, we will reduce inventories and strategic shareholdings, and streamline real estate holdings to improve capital efficiency and ROE 2. While prioritizing investments for future growth, we will actively return profits to shareholders to improve capital efficiency Net income * excluding impairment loss ¥ 10 billion Asset reduction and debt utilization ¥ 80 billion Of this, ¥ 30 billion is for reducing cross- shareholdings Depreciation costs *excluding lease liabilities ¥ 20 billion Total: ¥ 110 billion Returning dividends ¥ 15 billion Purchase of treasury shares ¥ 55 billion Cash generated during the 3-year period Investment in new and existing businesses ¥ 40 billion ➢ Focusing on IT and digital investments for growth ➢ Investment in human capital ➢ Actively promoting improvements in capital efficiency ➢ Continuing to pay stable dividends while taking into account our consolidated financial results and the status of asset sales Excerpts (from Revised Medium-Term Management Plan FY2024 to FY2026)
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19 FY2025 3Q Capital Policy and Shareholder Returns Breakdown Cumulative Results for the Revised Mid-term Management Plan Financial Policy for the Revised Mid-term Management Plan Progress Ratio Cash generated Net Income*1 Approx. -4.0 10.0 ー Depreciation cost*2◆ Approx. 11.0 20.0 55% Asset reduction and debt utilization*3 ◆ Approx. 21.0 50.0 42％ Sales of cross-shareholdings◆ Approx. 21.0 30.0 70％ Total Approx. 49.0 110.0 45％ Cash used Growth investment （capital investment） Approx. 6.0 40.0 33％Growth investment (Investment Amount for Acquiring Shares of Bravissimo Inc.) Approx. 9.0 Dividend payment Approx. 11.0 15.0 71％ Purchase amount of treasury shares Approx. 21.0 55.0 38％ Total Approx. 47.0 110.0 43％ Cumulative Results for the Revised Mid-term Management Plan Target Number of fully sold stocks 11 ー Ratio of net assets of cross- shareholdings 18.6% Less than 10% Details and Amount of capital investment Wacoal IT related investments, etc. Approx. 2.0 Wacoal Building renovation, etc. Approx. 0.7 Japanese subsidiaries Approx. 1.4 Overseas subsidiaries Approx. 1.9 Total Approx. 6.0 *1 Exclude the amount marked with ◆ from the total generated cash during the revised mid-term management plan period *2 Net of the expenditure for lease liability repayment from depreciation expenses *3 Exclude sales of cross-shareholdings *4 Market value at the time of sale ➢ Sale of cross-shareholdings：Approx. 3.7 billion yen（FY2025 3Q） ➢ Purchase amount of treasury shares ：Approx. 11.0 billion yen （FY2025 3Q） （reference）Wacoal Corp. Status of Sales of Cross-Shareholdings
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20 1. FY2025 3Q Financial Overview 2. Finance and Shareholder Returns 3. Progress of Revised Medium-Term Management Plan • Initiatives at Wacoal Holdings Corp. (Overseas Business) • Initiatives at Wacoal Corp. (Domestic Business) 4. Reference data
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21 Growth strategy to achieve VISION 2030 ⚫ Reviewing brand strategies ● Focusing on growth markets ⚫ Human resource development and organizational development to enhance corporate value 2 Opportunities Risks Business model reforms to improve profitability ⚫ Reviewing supply chain management ⚫ Cost structure reform ● Dealing with unprofitable businesses 1 Wacoal Group's strengths Personalized body and mind database Research/knowledge of various body types / life stages Manufacturing technology for products that suit each customer Organizational ability to meet individual needs and embody services ⚫ Diversifying the need to "be yourself" ⚫ Increasing the need for health and comfort ⚫ Social inculcation of sustainability awareness ⚫ Developing markets with significant growth potential ⚫ Increasing procurement costs due to changes in the external environment ⚫ Declining domestic demand due to population decline ⚫ Lack of competitiveness due to slow innovation ⚫ Declining corporate attractiveness and a serious shortage of staff Promoting asset reduction ⚫ Reducing inventories ⚫ Reducing strategic shareholdings ⚫ Streamlining real estate holdings 4 Introducing ROIC management ⚫ Monitoring profitability and strategy effectiveness ⚫ Business portfolio management 3Improving profitability and capital efficiency Growth investments and stakeholder returns Reiteration: Revised Medium-Term Management Plan FY2024 to FY2026 (disclosed November 9, 2023) Targets of the Revised Medium-Term Management Plan
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22 Initiatives at Wacoal Holdings Corp. (Overseas Business)
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23 Topics of FY2025 3Q Wacoal International Corp.(U.S.) Wacoal Europe Ltd. Future Initiatives Topics of FY2025 3Q Future Initiatives Inflation and continued inventory control by department stores posed challenges. To strengthen own EC, initiatives such as website changes, reviews on promotions, and the launch of CRM system have begun ● Prolonged restraint on purchasing ・ Sales at wholesale physical stores and store EC have stagnated, and restrained purchasing by counterparties is expected to continue ● Continuous growth in third-party EC ・ Major platforms in third-party EC continue to perform well While wholesale struggled in the U.K. and North America due to inventory control, the European continent performed well. The PMI of Bravissimo, which was acquired through M&A, is also progressing smoothly ● Strengthening initiatives for EC growth ・ U.K.: Continued measures to improve profitability of own EC Enhancements to organic search and site traffic acquisition via email ・ Germany and the U.S.: Focused on major third-party EC for sales expansion ・ U.S.:Started own EC from January FY2025 ● Focused approach on best-selling products ・ “Most Loved Styles” contributed to sales expansion for some major customers ● Enhanced SCM ・ Profit margin improved due to manufacturing and logistics cost reductions ● Steady PMI of Bravissimo ・ The PMI of Bravissimo, acquired through M&A in September 2024, is progressing ● Strengthening initiatives for EC growth ・ Third-party EC: Expanding investment in well-performing platforms ・ Own EC: Enhancing UX and improving purchase rates through the CRM system ● Review product strategy to meet needs ・ Initiating development of products for casual and comfort products Progress of Revised medium-term management Plan at Overseas Business（Europe・U.S.）
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24 ⚫ Selection and concentration on sales channels ・ Mall condition negotiations and closing unprofitable stores *Approx.20 stores have closed from the end of the previous period ・ Strengthening promotions in high-traffic department stores ⚫ Strengthening investment in major third-party EC ・ Improving UX and running off-platform advertisements ● Continued selection and concentration on sales channels ・ Continued negotiations with malls to determine early closure of unprofitable stores ・ Strengthening measures for VIPs and members, mainly in large department stores ⚫ Enhancing new customer acquisition through SNS platforms Wacoal China Co.,Ltd. Topics of FY2025 3Q Future Initiatives 【Issues】 ⚫ Decrease in Wacoal brand value due to increased competitors ⚫ Lower profit margins from discount sales (including inventory clearance purposes) ⚫ Reduced competitive advantage against price wars with competitors 【Concrete actions】 ● Toward a brand value-driven business ① Strengthening marketing to enhance brand value ② Increasing loyalty among high-value customers (physical stores) ● Improvement toward a higher-profit structure ③Growing EC business ➢ EC ratio target: Increase to 50% within 5 years Wacoal China's Challenges and Actions Physical stores struggled due to a decline in visitors to commercial facilities. While condition negotiations and withdrawal of underperforming stores progressed, the decline in sales has been large to improve profitability. Major third-party EC sales event "W11" is also sluggish Progress of Revised medium-term management Plan at Overseas Business（China）
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25 ③Growing EC business FY2026 target Before the change After the change Achieving sales targets through various initiatives and breakeven in operating profit ① Strengthening marketing to enhance brand value ①-2 [Review of MD and price strategy] ⚫ Segmentation of MD strategy by channel and area ⚫ Revising Price MD toward proper-price-centered EC business ①-1 [Visual merchandising for convey brand value] <Stores> Toward a natural and sophisticated image <EC> Creating pages that convey brightness, youthfulness, and sophistication ③-1 [Acquisition of new customers by expanding customer contact points] ⚫ Hosting live events featuring celebrities and promotion via SNS ⚫ Utilizing KOLs specialized in large size categories, etc. * KOL: Abbreviation for Key Opinion Leader, a person who has influence in selling products ③-2 [Deployment of product MD tailored to the EC platform] ⚫ Adjusting product lineup based on customer demographics of each site ② Increasing loyalty among high-value customers (physical stores) [Expansion of membership benefits] ⚫ Adding membership benefits to increase new and repeat customers ⚫ Strengthen point rewards and coupon issuance Progress of Revised medium-term management Plan at Overseas Business（China）
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26 Initiatives at Wacoal (Domestic Business)
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27 Progress of Revised medium-term management Plan at SCM Reform ■Virtuous Circle Aimed at through SCM Reform planning Production distribution store Increasing sales by improving the demand fulfillment rate Sales of stores and EC Streamlining inventories Fostering strong standard products (star product numbers) Securing inventory frames to replenish best-selling products Flexibly responding to increases and decreases in demand Decreasing distribution inventory UP ■ Initiatives and effects (target by FY2026) Maintain 60% or more based on Number of products *Approximate percentage of total for all brands Consolidation to less than 2,000 products *as of FY2025 under consideration Consolidation into core brands ③ ② ① ⑥ Shortened to 11 months *Shortened to 6 months for some products. *Applies to Wacoal and Wing brand innerwear ④ 【Before revision】*Until FY2026 To 10% of total innerwear production ⇩ 【After revision】*Until FY2027 To all standard innerwear items *Applies to Wacoal and Wing brand innerwear under consideration⑦ ⑤ Revised target Planning and development with a short lead time Demand- oriented repeat portions Quick delivery Replenishment and maintenance at stores Standard products: Continuing to produce and supply demand-oriented products to avoid their shortages New products: Selling out; developing high-rated products as candidates for next standard products Production store Ratio improvement of Standard and ongoing products Product aggregation Return rate ・ demand fulfillment rate Brand consolidation Shorten lead time Demand-linked production ratio Inventory turnover Done Done Done
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28 FY2025 FY2026 FY2027 Standard products 26% Standard products 30% Standard products 40% Ongoing products 24% Ongoing products 30% Ongoing products 30% New products 50% New products 40% New products 30% 3 months Progress of Revised medium-term management Plan at SCM Reform ④Shorten lead time 14 months 6 months Planning and Development Consider mass production Production Production Consider mass production Planning and Development ⑤Demand-linked production ratio Planning and Development Consider mass production 11 months Material ordering Production Material ordering Shortened LT required for examination and inspection by utilizing the design and materials of existing products Shortened LT by consolidating conference bodies [Some products] * Spot production Products that quickly reflect customer needs and trends Shorten lead time to enhance market responsiveness and productivity Establishing a system to create and quickly deliver best-selling products [Before] Increasing the production ratio in line with demand to minimize lost sales opportunities and drive sales growth. Also controlling excess inventory [Standard products] Released for over 5 seasons (3 years) [Ongoing products] Released within 2-4 seasons (1-2 years) [New products] Released within 1 season (6 months) Demand- linked production system Goals [After reducing] Sales ratio of Wacoal and Wing innerwearShortened Name and definition [Entire season] 2 4 S S 2 4 A W
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29 ⚫ Utilizing both stores and own EC is the key to increasing purchase frequency ➢ Customers using both stores and own EC have more than twice the average purchase frequency ➢ Sales growth is expected by increasing the ratio of customers using both stores and own EC 440 467 490 513 538 561 581 599 617 637 651 23/3期 1Q 23/3期 2Q 23/3期 3Q 23/3期 4Q 24/3期 1Q 24/3期 2Q 24/3期 3Q 24/3期 4Q 25/3期 1Q 25/3期 2Q 25/3期 3Q Progress of Revised medium-term management Plan at Customer Strategies Wacoal Members membership status Approx. 2.3 times 8% Period: Cumulative for FY2024 Own EC only Ratio of number of people 22%increase *The number of Wacoal Members was counted data- linked customers *excluding those registered only in wholesale or catalog categories. ＝ ×Sales member ship × Strengthen Online Merges with Offline (OMO) initiatives ⚫ Wacoal Members membership trends ➢ The integration of customer data, which was previously managed separately by channel, was completed in FY2022 ➢ The number of members exceeded 6.5 million <Reference> Sales Composition Factors ➢ Increase in the number of customers and the average purchase frequency （repeat）will expand the purchase amount Average number of purchases level Stores only Ratio of number of people 70% Content Recent status Staff Reviews Store sales staff(beauty advisors（BAs)) introduce reviews on own EC Supporting cross-channel purchasing behavior Hold and Order request Service Stores that provide the hold and order request service via own EC: Over 300 stores Store visit rate of applicants: Over 60% Purchase rate: Over 80%* *Cumulative from service launch in 2023 to January 5, 2025 Customers using both stores and own EC *Purchase frequency of customers using both stores and own EC is about 2.3 times higher compared to those who shop only in stores. *Purchase frequency of customers using both stores and own EC is about 2.3 times higher compared to those who shop only in own EC. ⚫ Examples of initiatives for OMO expansion Unit price Purchase frequency (repeating)
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30 Focused investment target Profit improvement target Trial target Maintain the status quo Brand Conditions ● Classified according to established internal standards for sales and profit ● Large market size but low Wacoal share, offering expansion potential ● Brands launched within the last 5 years ● Brands with high growth potential Progress of Revised medium-term management Plan at Brand Strategies 15-19 years old 20-29 years old 30-39 years old 40-49 years old 50-59 years old 60-69 years old High premium 20,000～ Premium 10,000～19,999 Better 7,000～9,999 Moderate 4,000～6,999 Affordable 2,000～3,999 Cost Saving ～1,999 AMPHI Salute・Yue GOCOCi WACOAL Wing ⚫ Renaming "core brands" to "product brands" and classifying "investment categories" into focused investment, profit improvement, trial, and maintain the status quo ⚫ Focus on "affordable" brands, where the market size is expanding. Aim to expand market share with three brands, including GOCOCi *Calculated based on Wacoal's estimates ⚫ Strengthening the "Affordable" brands with a large market size and growth potential for both wired and wireless bras ⚫ Expanding market share and improving the CAGRof the Affordable brands by adding GOCOCi, which offers a different value proposition, alongside Wing and AMPHI Brand Portfolio Strategy (Bra) Spring / Summer 2025 Product branding Young people Senior people
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31 FY2025 FY2028 FY2031 Progress of Revised medium-term management Plan at Brand Strategies 2.0 10.0 4.0 ❶ ❷ ❸ [What is GOCOCi] A Wacoal wireless bra that creates a beautiful bust with comfort and a beautiful three-dimensional bust line Comfortable Stretchy fabric and wireless design for a comfortable fit Lineup strength Product lineup based on fashion-driven materials, colors, and shapes Silhouette strength Particular design that refines the silhouette Hold strength A wide range of sizes based on our particular design, ensuring a secure fit Not meant to be seen／ Meant to be shownCan be seen／ One piece to stand out Supervised by outer apparel group Available in July One piece for a perfect base Inner Base One piece for effortless styling Mix and Match [Brand Slogan] Comfortable yet stylish innerwear that enhances your outfit, allowing you to enjoy fashion just the way you want [Goals to VISION2030] Expanding categories and sales channels to increase market share in the affordable market Initiatives of the Trial Target Brand GOCOCi [Brand Expansion Strategy] Strengthening the affordable brands centered on EC Expanding items Expanding sales channels (New business formats and global expansion) [EC] Own EC/third-party EC （Apparel EC） [Store] Retail stores [EC] Own EC/third-party EC（Major EC） [Stores] Department stores, mass retailers, specialty stores, factory stores,development of new channels ❶ Inner Base (Star product) ❸ July Release Product ❶ Inner Base (Star product) ❷ Mix and Match Strategic Target (New Customer Segment) Sales Target (Majority Customer Segment) （Billions of yen） Innovator Early adopter Early majority Late majority Main itemsSales channels *Amounts are the sales(retail) Inner Outer
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32 FY2025 FY2028 FY2031 Progress of Revised medium-term management Plan at Brand Strategies FY2025 FY2031 FY2028 Sports 5.0 30.0 15.0 [Goals to VISION2030] Establishing a definite position in the "body-conditioning wear" field Growth strategy for focused investment target brand "CW-X" [What is CW-X?] ⚫ A body-conditioning wear brand developed using insights and a unique taping principle from the Wacoal Human Science Research & Development Center [Product Features] ① Wearable taping technology ➢ A unique taping principle supports the body during exercise ② Special pattern making ➢ Designed for optimal fit and performance during exercise ③ High-quality materials ➢ Development of new materials according to product concept, ensuring stability and high quality [Brand Slogan] Better today than yesterday. Better tomorrow than today. Facing the body that engages in sports. Considering the condition that supports your body. We want CW-X to always be with you as you move toward a better you. What CW-X aims for Supporting everyone from world-class athletes to individuals who move their bodies in daily life [Roadmap to VISION2030] Strengthening expansion in running and baseball fields Expanding market share Expansion of sports apparel wear Broadening occupational markets Expansion of international sports markets New markets Exploring new Markets Strengthening production and sales systems, and developing new functional products Expanding domestic business and initiating international expansion Exploring new fields and further expanding international markets （Billions of yen） *Amounts are the sales(retail)
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33 1. FY2025 3Q Financial Overview 2. Finance and Shareholder Returns 3. Progress of Revised Medium-Term Management Plan • Initiatives at Wacoal Holdings Corp. (Overseas Business) • Initiatives at Wacoal Corp. (Domestic Business) 4. Reference data
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34 ➢ Oct YoY ○ Increase in store visitors × Decrease in spending per customer ➢ Nov YoY ○ Increase in store visitors ○EC is strong ➢ Dec YoY ○EC is steady ➢ Oct YoY ×Physical stores are struggling ○EC is steady ➢ Nov YoY ×Shift in timing of major promotions (YoY factor) ➢ Dec YoY × Reaction to strong performance in the same month of the previous year(YoY factor) 94 86 93 92 89 106 100 106 104 0 20 40 60 80 100 120 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 4月 5月 6月 7月 8月 9月 10月 11月 12月 PJ24/3期 PJ25/3期 PJ前年同期比 76 104 94 98 96 98 96 90 93 0 20 40 60 80 100 120 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 4月 5月 6月 7月 8月 9月 10月 11月 12月 ワコール24/3期 ワコール25/3期 ワコール前年同期比 Wacoal Peach John 3Q : YoY 104％ 3Q total: YoY 96％ (%) Delivery time misalignment Physical stores are struggling EC is strong 3Q 30th Anniversary of Establishment Promoting No Sounds It continues to fall below the previous quarter FY2025 3Q（Oct-Dec）Monthly Changes in Revenue for Major Domestic Subsidiaries (%) EC is strong 3Q 3Q : YoY 93％ 3Q total: YoY 94％ Note: The graph shows the monthly figures before the adjustments in settling accounts. （Including internal sales） Note: The graph shows the monthly figures before the adjustments in settling accounts. （Including internal sales） *Monthly trend compared to the revised plan is not shown because the plan for FY2025 was revised at the time of the 2Q results. （Millions of yen）（Millions of yen） Apr May Jun Jul Aug Sep Oct Nov Dec Apr May Jun Jul Aug Sep Oct Nov Dec Japan FY2024 Japan FY2025 Japan YoY PJ FY2024 PJ FY2025 PJ YoY
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35 ➢ Oct YoY 〇Third-party EC is strong ➢ Nov YoY ×Poor performance of major promotions ×Shift in timing of major promotions ➢ Dec YoY ×Poor performance of major promotions ➢ Oct YoY ×Purchasing control by business partners due to sluggish advanced sales ➢ Nov YoY ×Shift in timing of major promotions ➢ Dec YoY ×Sluggish physical stores 〇Own EC was good 81 90 66 80 81 101 102 65 89 0 20 40 60 80 100 120 0 20,000 40,000 60,000 80,000 100,000 120,000 Apr May Jun Jul Aug Sep Oct Nov Dec China FY2024 China FY2025 China YoY 93 108 99 105 84 105 91 90 96 0 20 40 60 80 100 120 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Apr May Jun Jul Aug Sep Oct Nov Dec WAI FY2024 WAI FY2025 WAI YoY Wacoal America Wacoal China 3Q : YoY 83％ 3Q total: YoY 82％ (%) 3Q FY2025 3Q（Oct-Dec）Monthly Changes in Revenue for Major Overseas Subsidiaries (%) 3Q 3Q : YoY 92％ 3Q total: YoY 97％ Alleviate customer supplier restraint KOL promotion was successful *Monthly trend compared to the revised plan is not shown because the plan for FY2025 was revised at the time of the 2Q results. （Thousands of dollars） （Thousands of yuan） *The graph shows the monthly figures before the adjustments in settling accounts.（Including internal sales） *YoY comparison is based on local currency *The graph shows the monthly figures before the adjustments in settling accounts.（Including internal sales） *YoY comparison is based on local currency Easter Period misalignment and so on Big Promotions at dedicated EC Due to worsening business conditions Sluggish growth in the number of customers visiting stores, as well as unsuccessful promotional activities, etc.
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36 ➢ Cumulative figures for April-December and October-December exceeded the same periods of the previous year ➢ Since the composition ratio of swimwear products is high, sales tend to be concentrated in spring and summer As a result of the acquisition at the end of September 2024, we incorporated this into our consolidated results from 3Q onward 114 94 86 105 91 173 113 127 145 0 20 40 60 80 100 120 140 160 180 200 0 5,000 10,000 15,000 20,000 25,000 30,000 4月 5月 6月 7月 8月 9月 10月 11月 12月 WEL24/3期 WEL25/3期 WEL前年同期比 113 99 98 106 108 92 98 101 113 0 20 40 60 80 100 120 0 5,000 10,000 15,000 20,000 25,000 30,000 Apr May Jun Jul Aug Sep Oct Nov Dec Bravissimo FY2024 Bravissimo FY2025 Bravissimo YoY Wacoal Europe *Including Bravissimo Bravissimo (%) 3Q ➢ Oct YoY 〇 × ➢ Nov YoY 〇 × ➢ Dec YoY 〇 ○ 3Q 3Q : YoY 126％ 3Q total: YoY 111％ (%)A rebound from the previous year's cyber incident The figures for Apr. – Sep. and the year-on-year comparison are for reference 【reference】 FY2025 3Q（Oct-Dec）Monthly Changes in Revenue for Major Overseas Subsidiaries Increase in revenue due to the acquisition Business slowdown on the continent Strong on the continent, mainly in Germany *Monthly trend compared to the revised plan is not shown because the plan for FY2025 was revised at the time of the 2Q results. Germany and France are doing well （Thousands of pounds） （Thousands of pounds） *The graph shows the monthly figures before the adjustments in settling accounts.（Including internal sales） *YoY comparison is based on local currency *The graph shows the monthly figures before the adjustments in settling accounts.（Including internal sales） *YoY comparison is based on local currency WEL FY2024 WEL FY2025 WEL YoY
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37 Reiteration:Wacoal Group Initiatives for the Fiscal Year Ending March 31, 2025 (disclosed May 15, 2024) ⚫ Cost structure reform is progressing at almost the expected level, although there are both positive and negative factors ⚫ Considering that the reduction effect is expected to be only about 6 billion yen due to the impact of foreign exchange rates and soaring prices of raw materials, we will consider and implement additional actions Progress of Revised medium-term management Plan at Cost structure reform Implemented items Specific activities Implementation timing Revised medium-term plan Initial goal FY2024 - FY2025 FY2026 3-year effect forecast Brand focus and selection ⚫ Reducing losses on returns and discounting by aggregating product numbers, etc. (Reducing production lines by approx. 40% and the number of product number by more than 10%) ⚫ Reviewing sales price setting ⚫ Aggregating production lines will start at 24AW and be completed during FY2025 1.9 0.5 1.9 2.4 Reducing production costs ⚫ Improving inspection process efficiency ⚫ Reducing man-hours by aggregating product numbers, etc. ● Will be completed by FY2025 0.6 0.3 0.3 0.6 Reducing production and material costs ⚫ Reviewing the production system ⚫ Aggregating materials and master colors ● Will be completed by FY2025 0.4 0.2 0.6 0.8 Improving the profit and loss of stores ⚫ Reviewing the terms and conditions of business with business partners ⚫ Withdrawing stores that are in the red (up to 32 stores) ⚫ Optimizing personnel in order to improve productivity ⚫ Considering the withdrawal from stores that are in the red and those that are not expected to revise transaction terms during FY2024 0.9 1.0 0.3 1.3 Offering voluntary retirement ⚫ Optimizing personnel in order to improve productivity ● Will be completed by FY2024 0.9 0.4 0.2 0.6 Optimizing other sales promotion expenses ⚫ Optimizing expenses for IT ⚫ Optimizing advertising/promotion costs ● Will be completed by FY2025 1.6 0.9 1.1 2.0 Reducing distribution costs, etc. ⚫ Improving distribution business profitability ● Will be completed by FY2025 0.6 0.0 0.4 0.4 The impact of cost increase in FY2023 due to the impact of foreign exchange rates and soaring costs -2.0 ー -2.0 Total Approx. 7.0 Approx. 1.3 Approx. 4.8 Approx. 6.1 （Billions of yen）
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38 FY2025 3Q Financial Results Overview (Millions of yen) Exchange rate USD GBP CNY FY2024 3Q results 143.29 179.52 19.98 FY2025 revised plan 150.00 190.00 20.50 FY2025 3Q results 152.57 195.43 21.15 Change % Change Change % Change 141,407 ー 135,000 ー 133,534 ー -7,873 - 5.6% -1,466 - 1.1% Cost of sales 61,846 43.7 57,970 42.9 58,114 43.5 -3,732 - 6.0% 144 +0.2% 79,561 56.3 77,030 57.1 75,420 56.5 -4,141 - 5.2% -1,610 - 2.1% Selling, general and administrative expense 74,605 52.8 76,630 56.8 73,977 55.4 -628 - 0.8% -2,653 - 3.5% 4,956 3.5 400 0.3 1,443 1.1 -3,513 - 70.9% 1,043 +260.8% Other income 1,269 0.9 10,890 8.1 10,806 8.1 9,537 +751.5% -84 - 0.8% Other expenses 8,206 5.8 1,290 1.0 1,174 0.9 -7,032 - 85.7% -116 - 9.0% -1,981 -1.4 10,000 7.4 11,075 8.3 13,056 ー 1,075 +10.8% Finance income 1,850 1.3 1,280 0.9 1,775 1.3 -75 - 4.1% 495 +38.7% Finance expense 237 0.2 350 0.3 394 0.3 157 +66.2% 44 +12.6% Share of profit of investments accounted for using equity method -1,175 -0.8 670 0.5 661 0.5 1,836 ー -9 - 1.3% -1,543 -1.1 11,600 8.6 13,117 9.8 14,660 ー 1,517 +13.1% -3,903 -2.8 8,050 6.0 9,086 6.8 12,989 ー 1,036 +12.9% % of sales vs FY2024 3Q results vs FY2025 3Q revised plan Consolidated Revenue FY2024 3Q results % of sales FY2025 3Q revised plan % of sales FY2025 3Q results Business profit Gross profit Operating (loss) profit (Loss) profit before income taxes and equity in net income of affiliated companies Net (loss) profit attributable to owners of parent
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39 FY2025 3Q Financial Results Overview (by Segment) (Millions of yen) Exchange rate USD GBP CNY FY2024 3Q results 143.29 179.52 19.98 FY2025 revised plan 150.00 190.00 20.50 FY2025 3Q results 152.57 195.43 21.15 Change % Change Change % Change 72,561 51.3 70,000 51.9 68,764 51.5 -3,797 - 5.2% -1,236 - 1.8% 50,308 35.6 50,200 37.2 50,001 37.4 -307 - 0.6% -199 - 0.4% 8,066 5.7 8,000 5.9 7,846 5.9 -220 - 2.7% -154 - 1.9% 10,472 7.4 6,800 5.0 6,923 5.2 -3,549 - 33.9% 123 +1.8% 141,407 100 135,000 100 133,534 100 -7,873 - 5.6% -1,466 - 1.1% 2,630 3.6 -880 -1.3 -254 -0.4 -2,884 ー 626 ー 2,008 4.0 1,300 2.6 1,500 3.0 -508 - 25.3% 200 +15.4% 257 3.2 -50 -0.6 33 0.4 -224 - 87.2% 83 ー 61 0.6 30 0.4 164 2.4 103 +168.9% 134 +446.7% 4,956 3.5 400 0.3 1,443 1.1 -3,513 - 70.9% 1,043 +260.8% 3,082 4.2 8,670 12.4 9,231 13.4 6,149 +199.5% 561 +6.5% -5,350 ー 1,300 2.6 1,535 3.1 6,885 ー 235 +18.1% -50 ー -70 ー 23 0.3 73 ー 93 ー 337 3.2 100 1.5 286 4.1 -51 - 15.1% 186 +186.0% -1,981 ー 10,000 7.4 11,075 8.3 13,056 ー 1,075 +10.8% Peach John Business FY2024 3Q results ratio FY2025 3Q revised plan ratio vs FY2024 3Q results vs FY2025 3Q revised plan Wacoal Business (Domestic) Wacoal Business (Overseas) ratio FY2025 3Q results Other Total Revenue FY2024 3Q results % of sales Total Business Profit % of sales FY2025 3Q results % of sales ChangeFY2025 3Q revised plan % Change Wacoal Business (Domestic) Wacoal Business (Overseas) Peach John Business Other % Change Change Change % Change Change % Change Wacoal Business (Domestic) FY2024 3Q results % of sales FY2025 3Q revised plan % of sales FY2025 3Q results Wacoal Business (Overseas) Peach John Business Other Total Operating Profit % of sales
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40 FY2025 3Q Results (Major Subsidiaries) (Millions of yen) Exchange rate USD GBP CNY FY2024 3Q results 143.29 179.52 19.98 FY2025 revised plan 150.00 190.00 20.50 FY2025 3Q results 152.57 195.43 21.15 Change % Change Change % Change Change % Change Change % Change Change % Change Change % Change Wacoal Corp. 68,519 65,573 64,550 -3,969 - 5.8% -1,023 - 1.6% 1,874 -550 -47 -1,921 ー 503 ー 2,768 9,913 10,327 7,559 +273.1% 414 +4.2% Wacoal International Corp. (U.S.) 21,302 19,947 19,561 -1,741 - 8.2% -386 - 1.9% 498 778 891 393 +78.9% 113 +14.5% -6,981 785 900 7,881 ー 115 +14.6% Wacoal Europe Ltd. 14,504 17,445 17,452 2,948 +20.3% 7 +0.0% 990 657 461 -529 - 53.4% -196 - 29.8% 957 636 261 -696 - 72.7% -375 - 59.0% Wacoal China Co., Ltd. 7,746 6,668 6,799 -947 - 12.2% 131 +2.0% -266 -500 -471 -205 ー 29 ー -269 -498 -447 -178 ー 51 ー Peach John Businesses 8,066 8,000 7,846 -220 - 2.7% -154 - 1.9% 257 -50 33 -224 - 87.2% 83 ー -50 -70 23 73 ー 93 ー Lecien 1,889 2,100 2,156 267 +14.1% 56 +2.7% -73 -70 28 101 ー 98 ー 15 -110 66 51 +340.0% 176 ー Nanasai 5,085 1,251 1,251 -3,834 - 75.4% 0 +0.0% -25 -101 -101 -76 ー 0 ー 43 -83 -83 -126 ー 0 ー Ａｉ 2,441 2,440 2,417 -24 - 1.0% -23 - 0.9% 124 157 169 45 +36.3% 12 +7.6% 127 155 170 43 +33.9% 15 +9.7% Wacoal International Corp. (U.S.) 148,662 132,983 128,208 -20,454 - 13.8% -4,775 - 3.6% 3,464 5,190 5,832 2,368 +68.4% 642 +12.4% -48,727 5,235 5,894 54,621 ー 659 +12.6% Wacoal Europe Ltd. 80,791 91,817 89,300 8,509 +10.5% -2,517 - 2.7% 5,514 3,460 3,126 -2,388 - 43.3% -334 - 9.7% 5,335 3,351 2,099 -3,236 - 60.7% -1,252 - 37.4% Wacoal China Co., Ltd. 387,664 339,880 321,467 -66,197 - 17.1% -18,413 - 5.4% -13,390 -24,414 -22,256 -8,866 ー 2,158 ー -13,500 -24,306 -21,139 -7,639 ー 3,167 ー FY2024 3Q results FY2025 3Q revised plan FY2025 3Q results FY2024 3Q results FY2025 3Q revised plan FY2025 3Q results vs FY2024 1H results vs FY2025 3Q revised plan Operating (Loss)/Profit FY2024 3Q results FY2025 3Q revised plan FY2025 3Q results vs FY2024 1H results vs FY2025 3Q revised plan vs FY2024 1H results vs FY2025 3Q revised plan Revenue Business (Loss)/Profit
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41 FY2025 Full-year Plan (Millions of yen) Change % Change Change % Change Revenue 187,208 ー 183,000 ー 181,000 ー -6,208 - 3.3% -2,000 - 1.1% Cost of sales 83,123 44.4 81,300 44.4 79,300 43.8 -3,823 - 4.6% -2,000 - 2.5% Gross profit 104,085 55.6 101,700 55.6 101,700 56.2 -2,385 - 2.3% 0 +0.0% Selling, general and administrative expenses 100,575 53.7 101,500 55.5 104,200 57.6 3,625 +3.6% 2,700 +2.7% Business (loss) profit 3,510 1.9 200 0.1 -2,500 ー -6,010 ー -2,700 ー Other income 1,990 1.1 2,600 1.4 11,100 6.1 9,110 +457.8% 8,500 +326.9% Other expenses 15,003 8.0 800 0.4 3,800 2.1 -11,203 - 74.7% 3,000 +375.0% Operating (loss) profit -9,503 ー 2,000 1.1 4,800 2.7 14,303 ー 2,800 +140.0% Finance income 2,529 1.4 1,300 0.7 1,590 0.9 -939 - 37.1% 290 +22.3% Finance expense 328 0.2 300 0.2 420 0.2 92 +28.0% 120 +40.0% Share of (loss) profit of investments accounted for using equity method -988 ー 800 0.4 930 0.5 1,918 ー 130 +16.3% (Loss) profit before income taxes and equity in net income of affiliated companies -8,290 ー 3,800 2.1 6,900 3.8 15,190 ー 3,100 +81.6% Net (loss) profit attributable to owners of parent -8,632 ー 3,200 1.7 4,500 2.5 13,132 ー 1,300 +40.6% % of sales vs FY2024 results vs FY2025 initial planFY2024 results % of sales FY2025 initial plan % of sales FY2025 revised plan Exchange rate USD GBP CNY FY2025 plan 144.62 181.76 20.14 FY2025 initial plan 145.00 191.00 21.00 FY2025 revised plan 150.00 190.00 20.50
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42 FY2025 Full-year Plan（By Segment） (Millions of yen) Change % Change Change % Change Wacoal Business (Domestic) 94,198 50.3 92,200 50.4 92,300 50.4 -1,898 -2.0% 100 +0.1% Wacoal Business (Overseas) 67,757 36.2 70,000 38.3 69,300 37.9 1,543 +2.3% -700 -1.0% Peach John Business 10,741 5.7 11,800 6.4 10,950 6.0 209 +1.9% -850 -7.2% Other Businesses 14,512 7.8 9,000 4.9 8,450 4.6 -6,062 -41.8% -550 -6.1% Total Revenue 187,208 100 183,000 100 181,000 100 -6,208 -3.3% -2,000 -1.1% FY2024 results % of sales initial plan % of sales revised plan % of sales Change % Change Change % Change Wacoal Business (Domestic) 791 0.8 -4,000 ー -4,500 ー -5,291 ー -500 ー Wacoal Business (Overseas) 2,773 4.1 3,600 5.1 2,050 3.0 -723 -26.1% -1,550 -43.1% Peach John Business 136 1.3 500 4.2 0 0.0 -136 -100.0% -500 -100.0% Other Businesses -190 ー 100 1.1 -50 ー 140 ー -150 ー Business Profit 3,510 1.9 200 0.1 -2,500 ー -6,010 ー -2,700 ー FY2024 results % of sales initial plan % of sales revised plan % of sales Change % Change Change % Change Wacoal Business (Domestic) -4,193 ー -2,300 ー 5,150 5.6 9,343 ー 7,450 ー Wacoal Business (Overseas) -5,145 ー 3,700 5.3 100 0.1 5,245 ー -3,600 -97.3% Peach John Business -239 ー 500 4.2 -500 ー -261 ー -1,000 ー Other Businesses 74 0.5 100 1.1 50 0.6 -24 -32.4% -50 -50.0% Operating (Loss)/Profit -9,503 ー 2,000 1.1 4,800 2.7 14,303 ー 2,800 +140.0% FY2024 results ratio vs FY2025 initial planFY2025 initial plan ratio FY2025 revised plan ratio vs FY2024 results Exchange rate USD GBP CNY FY2025 plan 144.62 181.76 20.14 FY2025 initial plan 145.00 191.00 21.00 FY2025 revised plan 150.00 190.00 20.50
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43 FY2025 Full-year Plan（Major Subsidiaries） (Millions of yen) Change % Change Change % Change Change % Change Change % Change Change % Change Change % Change Wacoal Corp. 88,701 86,142 86,181 -2,520 -2.8% 39 +0.0% 1,623 -2,600 -2,480 -4,103 ー 120 ー -3,061 -601 8,168 11,229 ー 8,769 ー Wacoal International Corp. (U.S.) 28,038 27,765 26,142 -1,896 -6.8% -1,623 -5.8% 892 1,449 1,050 158 +17.7% -399 -27.5% -6,884 1,449 1,055 7,939 ー -394 -27.2% Wacoal Europe Ltd. 20,353 22,951 25,766 5,413 +26.6% 2,815 +12.3% 1,713 1,992 1,332 -381 -22.2% -660 -33.1% 1,816 2,002 1,311 -505 -27.8% -691 -34.5% Wacoal China Co., Ltd. 10,396 10,080 9,238 -1,158 -11.1% -842 -8.4% -532 41 -499 33 ー -540 ー -998 41 -2,503 -1,505 ー -2,544 ー Peach John Businesses 10,741 11,800 10,950 209 +1.9% -850 -7.2% 136 500 0 -136 -100.0% -500 -100.0% -239 500 -500 -261 ー -1,000 ー Lecien 2,583 3,100 2,980 397 +15.4% -120 -3.9% -212 100 -60 152 ー -160 ー -167 50 -100 67 ー -150 ー Nanasai 7,723 1,701 1,251 -6,472 -83.8% -450 -26.5% 2 -71 -101 -103 ー -30 ー 94 -56 -83 -177 ー -27 ー Ａｉ 2,891 2,955 2,900 9 +0.3% -55 -1.9% 55 100 105 50 +90.9% 5 +5.0% 59 100 103 44 +74.6% 3 +3.0% Wacoal International Corp. (U.S.) 193,871 191,480 174,279 -19,592 -10.1% -17,201 -9.0% 6,166 10,000 7,000 834 +13.5% -3,000 -30.0% -47,602 10,000 7,030 54,632 ー -2,970 -29.7% Wacoal Europe Ltd. 111,976 120,164 135,609 23,633 +21.1% 15,445 +12.9% 9,423 10,431 9,064 -360 -3.8% -1,367 -13.1% 9,990 10,483 8,955 -1,036 -10.4% -1,528 -14.6% Wacoal China Co., Ltd. 516,177 480,000 471,890 -44,287 -8.6% -8,110 -1.7% -26,384 2,000 -24,350 2,034 ー -26,350 ー -49,606 2,000 -124,537 -74,931 ー -126,537 ー FY2024 results FY2025 initial plan FY2025 revised plan vs FY2024 results vs FY2025 initial plan 【Major Overseas Subsidiaries】 (local currency basis) (Unit: U.S.A.: Thousands of U.S. dollars Europe: Thousands of pounds China: Thousands of yuan) vs FY2025 initial plan FY2024 results FY2025 initial plan FY2025 revised plan vs FY2024 results vs FY2025 initial plan Revenue Business (Loss)/Profit Operating (Loss)/Profit FY2024 results FY2025 initial plan FY2025 revised plan vs FY2024 results Exchange rate USD GBP CNY FY2025 plan 144.62 181.76 20.14 FY2025 initial plan 145.00 191.00 21.00 FY2025 revised plan 150.00 190.00 20.50
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44 The information found in this document has been prepared based on information available at the time of its publication. The company does not warrant or promise that the information will lead to favorable results. It is also subject to change without notice. While we exercise great care when posting this information, we are not responsible for any errors in the published information. This is a translation of the original Japanese document, prepared and provided solely for readers' convenience. In case of any discrepancy between this translated document and the Japanese original, the original document shall prevail. Disclaimer Wacoal Holdings Corp. IR Website： https://www.wacoalholdings.jp/en/ir/ IR Contact Information： ir-wmg@wacoal.co.jp