DESCENTE LTD. Corporate Profile 2019

http://www.descente.co.jp/en/

June 2019 SAJ31 承認第 00381 号 Working with athletes looking for that 0.01 second advantage

©YDB

©GAMBA OSAKA

PHOTO by PICSPORT

Shohei Otani

02 03 Refining abilities to plan and develop sophisticated products

04 05 Communicating and delivering brand value

SAJ31 承認第 00293 号

06 07 About DESCENTE DESCENTE LTD. Corporate Profile 2019

Corporate Philosophy Communicating DESCENTE That vision carries the meaning of DESCENTE’s presence in and the expression of our involvement with society. Manufacturing creativity to the World To bring the enjoyment of sports to all

The years 2019 through 2021 are being called the "Golden Sports Years" Sport is based the idea of enjoyment both through movement of the body and competing; in Japan, as the country hosts a number of international sporting events. and it is through sports that DESCENTE contributes to life being lived ‒ by everyone - to the full. The eyes of the world will be focused on not only those sports events but also on Japanese sporting goods manufacturers. At DESCENTE LTD., we are working to further hone our manufacturing SPIRIT OF DESCENTE creativity, bringing on line new research and development centers, "DISC (DESCENTE INNOVATION STUDIO COMPLEX)" Our founding philosophy, the SPIRIT OF DESCENTE, is based on the words of management at the time of our establishment and for both sports apparel and . indicates the origin of the DESCENTE Group.

We will bring smiles to the faces of our customers as we deliver products President Shuichi Koseki that offer inspiration, surprise and a sense of fun. A rich imagination is the driving force of creativity in any age ‒ honing the senses Creation helps to develop the power to make the right everyday business decisions.

Who are we? In times of change there are always opportunities, which must be taken. At DESCENTE LTD., our business is based on the philosophy of bringing the enjoyment of sports to all, supporting a wide Challenge There are no failures ‒ simply missteps on the road to success. range of sports and sporting events through multiple brands. We develop high performance products for top athletes and Give responsibility to those who can be trusted with it teams, which is the source of our competitive strength, while offering customers who enjoy sports a satisfying range of Integrity and reward sincerity with sincerity. products and services, and also enhancing our ability to create retail environments that convey that value to the customer. We continue to expand the availability of our products and services under our brands as they are increasingly recognized inside In business, understanding the human psyche is fundamental. Harmony and outside Japan, including China, and the rest of Asia, as well as Europe and North America. Harnessing their joint strength is paramount to success.

Corporate Slogan Corporate Philosophy / SPIRIT OF DESCENTE

The slogan encapsulates DESCENTE's commitment to the finest designs for current and future generations of sportsmen Corporate Philosophy and women, promoting healthy lifestyles and enriching body and soul. Flexible and creative designs, backed by cutting-edge technology, help athletes to challenge their performance limits, To bring the enjoyment of sports to all and allow all sports enthusiasts to share in the passion. The silver color conveys an image of clean, sharp sophistication-symbolizing a brightly shining future.

Corporate Symbol mark

SPIRIT OF DESCENTE Descente is the French term for downhill . The logo represents the three basic skiing Creation / Challenge / Integrity / Harmony techniques of schussing, traversing and sliding. It embodies our quest to be the best in all we do and our focus on the future.

08 09 Brand Lineup DESCENTE LTD. Corporate Profile 2019

DESCENTE LTD.’s 14 brands, including the corporate brand "DESCENTE", offer high-performance sporting goods for a range of sports including , football, , and for everyone from top athletes to recreational and leisure enthusiasts.

Owned brands Licensed brands / Misc. CUTTER & BUCK & CUTTER LANVIN SPORT LANVIN Munsingwear coq le DESCENTE Marmot inov-8 AVIA Brands ryka DESCENTE le coq sportif arena

In collaboration with top athletes DESCENTE gives them, and the world, high-quality, superbly designed and A brand created in in 1882, for the joy A French sports brand focusing on swimming, arena functionally beautiful high-performance sportswear ‒ in of sports featuring refined and comfortable supports all those who love water-sports. our constant quest for innovative craftsmanship. functionality. No Territory Territory Limited Territory Japan only Limitation

Japan

Korea n i d l o H

a i s A China Munsingwear umbro SKINS

g Hong Kong

This is the first international knit golfwear brand originating SKINS , with its original dynamic gradient a e r a in the United States with the distinctive penguin logo. A football brand born in England in 1924. It supports compression technology, is the world’s most advanced Munsingwear offers adult-oriented products for everyone leading teams and players all over the world with range of sports compression wear for performance and Other who loves golf and seeks a sophisticated lifestyle. products of the highest quality and performance. recovery.

Europe

Americas

Baseball

Volleyball inov-8 Marmot LANVIN SPORT

The brand, born in the U.K. in 2003, features This brand fuses Paris fashion sense with sporty styling. Track & Field all-terrain with superior grip. Originating with This full-fledged outdoor brand from the United States While centering on the golf course, LANVIN SPORT trail running and now available for off-road, road, and has built a solid level of trust among top mountain products provide a level of elegance suitable for town Running performance training. climbers based on its superior performance and sense. and travel.

e r n e g g n i l d n a H Swimming

Football

Tennis

Outdoor / CUTTER & BUCK Babolat SRIXON

This American-style golf apparel brand caters to the Golf serious golfer who is always looking to take on new Originating in France in 1875, Babolat is a genuine challenges. CUTTER & BUCK combines the best in brand providing superior quality, functionality and style SRIXON dedicates its unique and advanced technologies functionality and comfort. for all tennis players. to all golfers and maximizes performance. Training

Compression garment

Shoes

AVIA ryka 14 Brands

AVIA is a sports shoe brand originally launched in the United States in 1979, which provides the best in both This women's performance footwear brand was born in performance and design. the United States in 1988.

10 11 History DESCENTE LTD. Corporate Profile 2019

Since our founding in 1935, DESCENTE has continuously developed high performance products across multiple brands for a wide variety of competitive sports. We will continue in our efforts to bring the enjoyment of sports to even more people than ever before.

History of DESCENTE History of Our Technology Development

November 2003 HONG KONG DESCENTE TRADING, LTD was established.

February 2004 Cream-Colored Baseball Downhill February 1935 LE COQ SPORTIF (NINGBO) CO., LTD. was established. “Tsuruya”, the predecessor of DESCENTE, was founded by Takeo Ishimoto. Full-Scale May 2005 1953 1979 entry into “Descente Health Management Research Center”, 1957 Starting with Asian markets specializing in providing preventive care services, was DESCENTE successfully developed During the FIS Alpine Ski World The brand “DESCENTE” was launched. baseball and established. cream-colored baseball uniforms Cup season, DESCENTE’s “magic” building to a February 1958 and training pants made from downhill suit dominated the multi-sports August 2005 The company was reorganized to “Ishimoto Shoten Co., Ltd.” pre-shrunk cotton fabric with a winners’ podium. SHANGHAI DESCENTE COMMERCIAL CO., LTD was specializing in the manufacture and sales of sportswear. established. wool-like finish. The suit reduced air resistance to September 1961 Capitalizing on a baseball boom, the lowest acceptable limits and August 2006 The company changed its name to DESCENTE LTD. these items became hit products. caused a sensation by shaving up The first annual “Sports School for Healthy Kids” was held, to two seconds off the winners’ 1964 with the aim of educating children about the pleasure of sports. (Held every year since 2006) The “Munsingwear” brand was launched. V-shaped recovery times. (Trademark rights for Japan and other Asian countries obtained in 1984) post A registered trademark December 2010 Beginning of termination for baseball uniforms in 1953 SINGAPORE DESCENTE PTE. LTD. was established. technological 1977 downturn through innovation to The “arena” brand was launched. strengthening of March 2012 give top atletes (Trademark rights for Japan and other Asian countries obtained in 1990) house brands and Construction of the new Osaka Office building, located in an advantage overseas market Tennoji-ku, Osaka City, was completed. September 1978 expansion The 1st DESCENTE Athletics Eight Nation Track & Field Championship, the first sports competition to be sponsored by DESCENTE, was held. 2012 Aile Bleue Mizusawa Down The “SKINS” brand was launched in Japan. April 1979 (Trademark rights for Japan and other Asian countries obtained in 2012) “THE DESCENTE AND ISHIMOTO MEMORIAL FOUNDATION FOR 2004 2008 THE PROMOTION OF SPORTS SCIENCE” was established. January 2015 DESCENTE GLOBAL RETAIL LTD. was established. Aile Bleue swimwear was launched by A down jacket line based on a March 1980 arena. The design applies “biomimetics” non-quilting July 2015 The company was listed on the first section of the . to manufacturing to achieve smart manufacturing process. The DESCENTE LTD. was awarded the J∞ QUALITY certification The addition for products made in Japan. performance based on principles derived product uses materials that of licensed 1980 brands to The “le coq sportif” brand was launched in Japan. from nature. At the 2004 Athens achieve superior water resistance (Trademark rights for Japan and other Asian countries obtained in 1990) August 2015 the portfolio Acquired the inov-8 Group. Olympics, Ai Shibata won gold in the and moisture permeability, fuels growth August 1982 800m women’s thereby providing a high level of July 2016 DESCENTE NORTH AMERICA, INC. was established. freestyle wearing Aile Bleue. wearer comfort. Affiliated Companies Accounted for under the Equity Method DESCENTE (CHINA) CO., LTD. was established. March 1985 Established The company had a pavilion based on the theme of “Health & several affiliate September 2016 Sports” at the International Exposition, Tsukuba, Japan, 1985. companies DESCENTE JAPAN LTD. was established. overseas April 1992 to expand October 2016 The JPGA “1st Descente Classic Munsingwear Cup” golf tournament, international Affiliated Companies Accounted for under the Equity Method was launched. (ended in 2008) business ARENA (SHANGHAI) INDUSTRIAL CO., LTD. was established.

December 1994 April 2017 FUSIONKNIT G-SERIES BEIJING DESCENTE CO., LTD was established. A new Group structure was launched, with DESCENTE LTD. Acquisition of as the global headquarters. trade mark January 1998 rights of Construction of the new Tokyo Office building, located in July 2017 2018 2018 key brands Toshima-ku, Tokyo, was completed. ARENA KOREA LTD. was established. A range of knit garments that point Shoes launched with "graphene" the world’s new thinnest and to revolutionary changes in athletic strongest super material that won a Nobel Prize in Physics in 2010 December 1998 March 2018 for its discovers. The shoes were joint developed by inov-8 and the Termination of the license agreement with “adidas”. DESCENTE ATHLETIC AMERICAS INC. was established. wear. A variety of stitch structures in a continuous knit fabric University of Manchester. With graphene outsoles G-Series shoes are July 2018 1999 Implemented seamlessly fuse different proven to be 50% stronger, more elastic and durable. Launced “umbro” brand business in Japan. new measures R&D Center "DISC OSAKA" was established in Ibaraki, Osaka. (Trade mark right for Japan obtained in 1998, for South Korea in 2013) for further areas/functions to optimise growth August 2018 comfort and mobility, with September 2000 Concluded a comprehensive business alliance agreement with Wacoal Holdings Corp. supersonic seam welding to ensure The JLPGA , “Munsingwear Ladies Tokai Classic” golf tournament maximum compatibility between was launched. (Held every year since 2000) October 2018 garment and skin and the latest R&D Center "DISC BUSAN" November 2000 was established in Busan, Korea. patterning technology to ensure DESCENTE KOREA LTD. was established. ultimate freedom of movement.

12 13 Group DESCENTE LTD. Corporate Profile 2019

Company Profile Commercial Subsidiary Companies（Overseas）

Name DESCENTE LTD. China SINGAPORE Founded February 1935 Name BEIJING DESCENTE CO., LTD. Name SINGAPORE DESCENTE PTE. LTD. Incorporated February 1958 Business Manufacture of sportswear and related articles Business Sales of sportswear and related articles President Shuichi Koseki Capital ¥3.8 billion Name SHANGHAI DESCENTE COMMERCIAL CO.,LTD. AMERICA Turnover ¥14.1 billion（FY ended March 2018, Consolidated） Business Sales of sportswear and related articles Employees Consolidated 3,469 / Non-consolidated 219（As of March 31, 2018） Name DESCENTE MOUNTAIN AMERICAS INC. Name HONG KONG DESCENTE TRADING, LTD. Business Sales of sportswear and related articles Business Sales of sportswear and related articles Business Sales of sportswear and related articles Base Office R&D Center Name Tokyo Office DISC OSAKA (Apparel) DESCENTE ATHLETIC AMERICAS INC. Business Sales of sportswear and related articles 1-4-8 Mejiro, Toshima-ku, Tokyo 171-8580 TEL.+81-3-5979-6006 2-3-2, Saitoyamabuki, Ibaraki, Osaka 576-0086 JAPAN KOREA Osaka Office DISC BUSAN (Shoes) Name DESCENTE KOREA LTD. 1-11-3 Dogashiba, Tennoji-ku, Osaka 543-8921 TEL.+81-6-6774-0365 162, Myeongji International 6, Gangseo-gu, Busan, Korea Business Sales of sportswear and related articles England Southeast Asia Branch Office Singapore Co-located with SINGAPORE DESCENTE PTE. LTD. Name DESCENTE GLOBAL RETAIL LTD. Name INOVEIGHT LTD. Business Sales of sportswear and related articles Business Sales of sportswear and related articles

Commercial Subsidiary Companies（Japan） Affiliated Companies Accounted for under the Equity Method

Name DESCENTE JAPAN LTD. China Incorporated September 2016 Business Sales of sportswear and related articles Name DESCENTE（CHINA）CO., LTD. Name ARENA（SHANGHAI) INDUSTRIAL CO., LTD. Business Sales of sportswear and related articles Business Sales of sportswear and related articles Base Tokyo Office 1-4-8 Mejiro, Toshima-ku, Tokyo 171-8580 TEL.+81-3-5979-6060 Name LE COQ SPORTIF (NINGBO) CO., LTD. KOREA Osaka Office Business Sales of sportswear and related articles 1-11-3 Dogashiba, Tennoji-ku, Osaka 543-8921 TEL.+81-6-6774-0365 Name ARENA KOREA LTD. Sapporo, Sendai, Nagoya, Hiroshima, Fukuoka Branch Business Sales of sportswear and related articles

Name DESCENTE APPAREL LTD. Incorporated January 1999 Sales composition ratio Business Manufacture of sportswear and related articles March 2018 Office 1-11-3 Dogashiba, Tennoji-ku, Osaka 543-892 TEL. +81-6-6774-0356 ● Share of Sales by Brand and Ownership Structure ● Net Sales by Area

Mizusawa Factory Muraoka Factory Licensed brands / Misc. EU/USA3％ Long-term expertise in ski suit and other outerwear This factory focusses on the production of 8％ production can be seen now in the manufacture of high-quality baseball clothing worn by both Mizusawa down utilising the unique sewing professional and amateur players. Owned brands Owned brands processes developed here. Pattern design and sample (Limited Territory) Japan production are also undertaken here. Kami-cho, Mikata-gun, Hyogo 44％ TEL. +81-796-98-1211 ％ 48％ DESCENTE Asia 40 Oshu, Iwate inov-8 TEL. +81-197-46-2313 le coq sportif 57％ Mizusawa Down Jacket Orix Buffaloes "ANCHOR 10th ANNIVERSARY" Munsingwear arena umbro Yoshino Factory Saito Factory Other More than 90% of sales is in owned brands led Sales are increasing in Japan and other Asian This factory can handle flexible delivery schedules Specialising in Japan Professional Football by our corporate brand DESCENTE. countries centered on Korea and China. and varying production lots for a range of products League team uniforms. It also produces from track and field to swimming. Pattern design swimwear designed for elite swimmers, applying and sample production are also done here. special sewing (adhesion) technologies. CSR Policy Yoshino-gun, Nara Saito, Miyazaki TEL. +81-747-52-3940 TEL. +81-983-44-5241 To DESCENTE, CSR is a set of principles that form the foundation of all Group activities and ensure that we contribute to the well-being of both local communities and society at large. Asahi Kasei ULTIMATE Track & Field Club uniform AQUAFORCE

1 Contributing to the physical and emotional well-being of people by supporting sports and promoting healthy lifestyles.

Name BEN-GENERAL CORPORATION 2 To engage in activities that benefit the community economically, socially and environmentally. Incorporated December 1950 Business Sales of sportswear and related articles 3 In line with our Code of Ethics, to respect human rights in Japan and elsewhere, Head Office 1-11-3 Dogashiba, Tennoji-ku, Osaka 543-8921 TEL. +81-6-6734-6430 comply with all local, national and international laws and regulations, and act ethically and with high integrity.

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