Notice Regarding the Commencement of Constructive Engagement (Dialogue) with Wacoal Holdings

Shosukabu.com Co., Ltd. (Chairman: Yutaka Yamanaka; Head Office: Nerima-ku, Tokyo; hereinafter "the Company") hereby announces that Yutaka Yamanaka, Chairman of the Company, as a beneficial shareholder of Wacoal Holdings Corp. (President and CEO: Masaaki Yajima; Head Office: Kyoto City, Kyoto; Tokyo Stock Exchange Prime Market: 3591; hereinafter "Wacoal HD"), has commenced constructive engagement based on the Stewardship Code, as detailed below.

1. Background and Purpose of this Engagement

The Company provides investment and dispatches engineers to "G Tech Material Co., Ltd." (hereinafter "G Tech"), a strategic and important base for Wacoal HD in Thailand, through Cosmo Co., Ltd. (President: Kenji Mori; Head Office: Higashinari-ku, Osaka; hereinafter "Cosmo"). Recently, rising energy costs and disruptions in logistics networks accompanying the heightening tensions in the Middle East have had a significant impact on the manufacturing industry in Thailand.

In such an uncertain external environment, the true value of the "Vertical Integration Model" (a system that consistently handles everything from research and planning to material manufacturing and sales) established by Wacoal HD is being tested.

 

Yutaka Yamanaka, Chairman of the Company, from his multi-layered position as a major shareholder of Cosmo and a shareholder of Wacoal HD, will proceed with dialogue focusing on the following themes aimed at responding to geopolitical risks and strengthening supply chain resilience:

• Strengthening supply chain resilience under geopolitical risk: The impact of rising energy costs on G Tech's operations and cost-of-sales ratio, and countermeasures.

• Risk hedging through the vertical integration model: Maintaining and contributing to cost competitiveness in the current market environment through material manufacturing within the group.

• Partnership outlook: Strengthening cooperation with partner companies and improving capital efficiency.

 

2. Dialogue Based on the Relationship of Trust Between Founding Families

The representative of the Company and the founding family of Wacoal HD have built a certain level of friendship over many years. While using this relationship of trust as a foundation, we will add an objective perspective as a shareholder and aim for "constructive dialogue" that contributes to the sustainable growth and further improvement of the corporate value of Wacoal HD.

(Reference) About G Tech Material Co., Ltd.

Established: 2015 (Commenced operations in February 2016)

Business Description: Manufacturing and sales of raw materials (fabrics and materials) for women's innerwear, etc.

Capital Structure: A joint venture between the Wacoal Group (total investment ratio of 60%), the Saha Group, and Japanese joint venture partners (such as Cosmo).

 

Role: A consolidated subsidiary responsible for the "upstream processes" of the vertically integrated supply chain to maintain Wacoal HD's cost competitiveness in the ASEAN region.

■ Company Profile

Company Name｜Shosukabu.com Co., Ltd. (https://www.shosukabu.com)

Location｜Nerima-ku, Tokyo

Representative｜Yutaka Yamanaka, Chairman

Business Description｜Advisory related to the Companies Act, shareholder rights protection consulting, corporate governance system support, financial advisory, venture investment, AI-related business, real estate business.

◆ The Company complies with the Financial Services Agency's "Principles for Responsible Institutional Investors" (Japan's Stewardship Code) and continues to monitor and engage in constructive dialogue with investee companies.

https://www.shosukabu.com/stewardship-code/