Strengthen management capabilities

Profitability has been declining at Wacoal Corp., our core operating company, due to sluggish sales and a cost structure with a high fixed cost ratio. We are reviewing the business strategies set forth in our medium-term management plan to return to top line growth and improve profitability. In order to enhance management effectiveness, it is an extremely important issue to strengthen management capabilities to make accurate and fast decision-makings and contribute to organizational achievements. We will, once again, work to cultivate, develop and appoint management human resources based on the succession plan. We also recognize that it is essential to foster a healthy feedback culture from the perspective of strengthening organizational capabilities. We will promote efforts to secure and develop management human resources who can realize our vision, implement our strategies, and motivate members to link individuals’ strengths to organizational results.

Development of Management Personnel

During the fiscal year ending March 31, 2024, we plan to provide new trainings for the senior management as part of measures to disseminate our group’s management philosophy, and for all management positions, to promote diversity as a source of innovation and to acquire basic knowledge of psychological safety, which is a foundation of organizational development, and unconscious bias.

Review of Evaluation System

At Wacoal Corp., while increasing the diversity of human resources, we are building a more productive organization with a small number of highly skilled employees. In addition, we are reviewing, as needed, our systems and operations for “fair evaluation and treatment” and “appointment of leaders who can continue to enhance the attractiveness of an organization” which form the basis for such efforts. By fostering a culture of feedback and enhancing the level of acceptance of evaluation results, we aim to strengthen our organizational capabilities. Starting from fiscal year ending March 31, 2024, we have set forth the elements based on our management philosophy (VISION 2030, Action) as new evaluation items and making efforts to permeate and put into practice our management philosophy, while at the same time, we use evaluations as one of our communication tools to enhance opportunities for dialogue.