Wacoal : Consolidated Business Results for the Third Quarter of the Fiscal Year Ending March 31, 2023

[Translation]

Consolidated Business Results for the Third Quarter of the Fiscal Year Ending March 31, 2023 [IFRS]

					February 10, 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)	Hironobu Yasuhara
For Inquiries: (Position) Corporate Officer, Head of Corporate Planning Dept.	(Name)	Katsuya Hirooka
Scheduled quarterly report submission date:	February 14, 2023	Tel: [phone]
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. Third Quarter of the Fiscal Year Ending March 31, 2023 (April 1, 2022 - December 31, 2022)

1. Consolidated Business Results

			(% indicates increase (decrease) from the corresponding period of the previous fiscal year)
									Profit Before
			Business			Operating		Income Taxes and
	Revenue					Equity in Net	(Loss) Profit
		Profit			(Loss) Profit
					Profit of Affiliated
									Companies
	Millions of Yen	%	Millions of Yen	%		Millions of Yen	%	Millions of Yen	%	Millions of Yen	%
Third Quarter
ended December	143,903 10.7	4,978	(3.1)	(1,810)	-	252 (96.7)	(2,368)	-
31, 2022
Third Quarter
ended December	129,989	-	5,136	-		6,113	-	7,577	-	4,908	-
31, 2021
	Net (Loss) Profit	Total			Basic (Loss)	Diluted (Loss)
	Attributable to	Comprehensive		Earnings
			Earnings per Share
	Owners of Parent	Income			per Share
	Millions of Yen	%	Millions of Yen	%		Yen		Yen
Third Quarter
ended December	(2,431)	-	961	(84.5)	(40.27)		(40.27)
31, 2022
Third Quarter
ended December	5,002	-	6,202	-		80.13		79.79
31, 2021

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

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 December 31, 2022	283,266	211,421	208,414	73.6
As of the end of Fiscal	299,177	220,868	217,990	72.9
Year (March 31, 2022)

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2. Status of Dividends

		Annual Dividend
End of First	End of Second		End of Third		Year-End
Quarter	Quarter		Quarter

Total

		Yen	Yen	Yen	Yen	Yen
	Fiscal Year Ended March 31, 2022	-	20.00	-	30.00	50.00
	Fiscal Year Ending March 31, 2023	-	40.00	-
	Fiscal Year Ending March 31, 2023				40.00	80.00
	(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, 2023 (April 1, 2022 - March 31, 2023)

(% indicates increase (decrease) from the previous fiscal year)

							Loss Before	Net Loss
							Income Taxes		Basic Loss per
			Revenue	Business Profit	Operating Loss	and Equity in	Attributable to
			Net Profit of	Owners of	Share
							Affiliated		Parent
							Companies
			Millions of Yen %	Millions of Yen %	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Yen
	Annual		190,000 10.4	2,000 304.9	(5,500)	-	(3,000)	-	(4,000)	-	(66.26)
	(Note)	Revision	of forecast of	consolidated business	results announced	during the latest	quarter: Yes

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Notes

1. Changes in significant subsidiaries in the consolidated cumulative third 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 principles and/or accounting estimates:
3. 1. Changes in accounting principles required by IFRS: None
   2. Changes in accounting principles other than (i) above: None
   3. Changes in accounting estimates: None
4. Number of Issued Shares (Common Stock)

	Third Quarter ended	Fiscal Year ended
	December 31, 2022	March 31, 2022

1. Number of issued shares (including

treasury stock) as of the end of:

64,500,000 shares

65,589,042 shares

1. Number of shares held as treasury

stock as of the end of:

5,763,428 shares

4,130,773 shares

1. Average number of shares during

consolidated third quarter (third	60,364,680 shares	62,424,097 shares
quarter ended December 31):

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

*Cautionary Statement regarding Forecast of Business Results

(Implementation of the International Financial Reporting Standards ("IFRS"))

Our group has implemented IFRS starting from the current consolidated fiscal year. The financial figures for the corresponding period of the previous fiscal year and the previous fiscal year are also presented in accordance with IFRS. For differences between IFRS and U.S. GAAP in the financial figures, please see "2. Condensed Quarterly Consolidated Financial Statements and Accompanying Notes - (5) Notes to Condensed Quarterly Consolidated Financial Statements (First-time adoption)" on page 19 of the attached materials.

(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 Third Quarter - (3) Qualitative Information regarding Forecast of Consolidated Business Results" on page 10 of the attached materials.

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Table of Contents for Attached Materials
1.	Qualitative Information regarding Consolidated Performance during the Third Quarter	--------------------- 5
(1)	Qualitative Information regarding Consolidated Business Results ----------------------------------------------	5
(2)	Qualitative Information regarding Consolidated Financial Condition ------------------------------------------	9
(3)	Qualitative Information regarding Forecast of Consolidated Business Results -------------------------------	10
2.	Condensed Quarterly Consolidated Financial Statements and Accompanying Notes ------------------------	11
(1)	Condensed Quarterly Statement of Financial Position -----------------------------------------------------------	11

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

	Statement of Comprehensive Income ------------------------------------------------------------------------------	13
(3)	Condensed Quarterly Consolidated Statement of Changes in Equity ------------------------------------------	15
(4)	Condensed Quarterly Consolidated Statement of Cash Flows --------------------------------------------------	16
(5)	Notes to Condensed Quarterly Consolidated Financial Statements --------------------------------------------	17
	(Notes on Going Concern) -------------------------------------------------------------------------------------------	17
	(Segment Information) -----------------------------------------------------------------------------------------------	17
	(First-time Adoption) -------------------------------------------------------------------------------------------------	18

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1. Qualitative Information regarding Consolidated Performance during the Third Quarter

1. Qualitative Information regarding Consolidated Business Results
2. 1. Performance Overview of the Nine Months ended December 31, 2022

				(Millions of Yen)
	Previous Consolidated	Current Consolidated	Increased/(Decreased) from
	Cumulative Third	Cumulative Third	previous consolidated
	Quarter	Quarter	cumulative
	(From April 1, 2021 to	(From April 1, 2022 to	third quarter
	December 31, 2021)	December 31, 2022)
	Amount	Amount	Amount		%
Revenue	129,989	143,903	+13,914		+10.7
Cost of sales	56,351	62,246	+5,895		+10.5
Gross profit	73,638	81,657	+8,019		+10.9
Selling, general and administrative expenses	68,502	76,679	+8,177		+11.9
Business profit	5,136	4,978	(158)		(3.1)
Other income	1,316	5,019	+3,703		+281.4
Other expenses	339	11,807	+11,468		-
Operating (loss) profit	6,113	(1,810)	(7,923)		-
Finance income	1,271	1,285	+14		+1.1
Finance expense	226	684	+458		+202.7
Share of profit of investments accounted for using	419	1,461	+1,042		+248.7
equity method
Profit before income taxes and equity in net profit of	7,577	252	(7,325)		(96.7)
affiliated companies
Net (loss) profit attributable to owners of parent	5,002	(2,431)	(7,433)		-

(Our group voluntarily implements the International Financial Reporting Standards ("IFRS") starting from the beginning of the current cumulative third quarter, and the results for the previous cumulative third quarter have been reclassified to conform to IFRS.)

Business environment surrounding our group during the current consolidated cumulative third quarter (April 1, 2022 - December 31, 2022) were severely affected by weak sales in major countries and the consequential impact of our clients' restraint of procurement. Despite relaxation of restrictions related to the coronavirus pandemic ("COVID-19"), recovery in sales from our group's domestic business has been gradual as a result of the number of customers visiting our retail stores remained low, due to the negative impact on consumer spending arising from inflation concerns in the second half of the year. Our business environment in the United States remained sluggish due to the slowdown in consumer spending as well as the impact of inventory adjustments by suppliers. Our business in China also remained challenging due to the implementation of strict COVID-19 restrictions. Our business in Europe, on the other hand, maintained its strong sales despite the continuing inflation. In addition, our business in other Asian countries showed signs of recovery as relaxation of COVID-19 restrictions took place.

Under such circumstances, our group is moving forward with our initiatives to address increasingly complex and diverse social issues as an opportunity for future growth, and to enhance our corporate value by promoting "sustainable management", a management approach that balances resolving social issues on one hand and sustainable growth on the other hand through our business activities, under the "VISION 2030", our medium- to long-term strategy framework which we announced in June 2022. In addition, our new mid-term business plan for the next three years, which starts in the current fiscal year, is designed to lay the foundation to realize our new vision formulated under "VISION 2030", which is "to evolve and grow" as "Wacoal Group of the World" by providing both physical and emotional beauty and richness to individuals through high sensitivity and premium quality", and to promote initiatives for transforming into a highly profitable company capable of sustainable growth.

In our domestic business, we will continue promoting our unique CX strategy including the utilization of our customers database and merger between online and offline activities to improve value of our customer experience, and strengthening our efforts to improve profitability, aiming "to transform ourselves into a resilient corporate structure". In our overseas business, we will seek further expansion by expanding our e-commerce business and

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