Goldwin : Matters Subject to Measures for Electronic Provision When Convening the 72nd Annual General Meeting of Shareholders

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

To Our Shareholders

Matters Subject to Measures for Electronic Provision When Convening the 72nd Annual General Meeting of Shareholders

1. Notes to Consolidated Financial Statements
2. Notes to Non-consolidated Financial Statements

In accordance with laws and regulations and Article 15 of the Company's Articles of Incorporation, the above matters are excluded from the paper-based documents delivered to shareholders who have made a request for delivery of such documents (documents containing matters subject to measures for electronic provision).

GOLDWIN INC.

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Notes to Consolidated Financial Statements

(Notes to Basis of Presenting Consolidated Financial Statements) 1. Scope of consolidation

1. Number of consolidated subsidiaries and names of principal consolidated subsidiaries

Number of consolidated subsidiaries	13
Names of consolidated subsidiaries

GOLDWIN LOGITEM INC., GOLDWIN ENTERPRISE INC., GOLDWIN TRADING INC., BEIJING GOLDWIN CO., Ltd., nanamica inc., BLACK & WHITE SPORTSWEAR CO., LTD., GOLDWIN AMERICA, Inc., WOOLRICH JAPAN INC., GOLDWIN EUROPE GmbH, nanamica USA, INC., Goldwin China, Ltd., GOLDWIN VENTURE PARTNERS INC. and GOLDWIN PLAY EARTH FUND LPS

Change in scope of consolidation

Among the subsidiaries stated above, GOLDWIN PLAY EARTH FUND LPS is included in the scope of consolidation because it was established during the current fiscal year.

CANTERBURY OF NEW ZEALAND JAPAN INC., a subsidiary in the previous fiscal year, is excluded from the scope of consolidation due to its merger with the Company; GOLDWIN EUROPE AG is also excluded from the scope of consolidation due to its liquidation.

1. Names, etc. of principal non-consolidated subsidiaries Names of principal non-consolidated subsidiaries
   SHANGHAI GOLDWIN CO., LTD. GOLDWIN SAI GON VIETNAM CO.,LTD

Reason for exclusion from scope of consolidation

SHANGHAI GOLDWIN CO., LTD. and GOLDWIN SAI GON VIETNAM CO.,LTD are both small in size, and their total assets, net sales, net income/loss (corresponding to the Company's ownership), and retained earnings (corresponding to the Company's ownership) do not have a material impact on the consolidated financial statements.

2. Application of equity method

1. Number of non-consolidated subsidiaries and affiliates accounted for by the equity method and names of principal companies, etc.

Number of affiliates accounted for by the equity method 3 Names of principal companies, etc.

(Affiliates)

YOUNGONE OUTDOOR Corporation, GOLDWIN DEVELOPMENT INC., Woolrich International Limited

1. Names, etc. of non-consolidated subsidiaries and affiliates not accounted for by the equity method Names of principal companies, etc.
   (Non-consolidated subsidiaries)
   SHANGHAI GOLDWIN CO., LTD. GOLDWIN SAI GON VIETNAM CO.,LTD
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Reason not accounted for by the equity method

SHANGHAI GOLDWIN CO., LTD. and GOLDWIN SAI GON VIETNAM CO.,LTD both have no material impact on net income/loss (as calculated by the equity method), retained earnings (as calculated by the equity method), etc., and do not have a significant effect on the Company as a whole.

The fiscal year end of YOUNGONE OUTDOOR Corporation and Woolrich International Limited is December 31, and their financial statements as of that date are used in applying the equity method.

1. Fiscal year of consolidated subsidiaries
   The fiscal year end of consolidated subsidiaries BEIJING GOLDWIN CO., Ltd., Goldwin China, Ltd., GOLDWIN AMERICA, Inc., GOLDWIN EUROPE GmbH, nanamica USA, INC., and GOLDWIN PLAY EARTH FUND LPS is December 31.
   In preparing the consolidated financial statements, financial statements as of the same fiscal year end are used, and adjustments necessary for consolidation are made for significant transactions that occurred during the period between the fiscal year end and the consolidated fiscal year end.
2. Accounting policies
3. 1. Valuation standards and methods for significant assets

1. Securities Available-for-sale securities

Securities other than shares, etc. that do not have market prices

Market value method (unrealized gains and losses are accounted for as a component of net assets, and the cost of securities sold is determined by the moving-average method).

Shares, etc. that do not have market price

Stated at cost determined by the moving-average method.

1. 1. Inventories
      Mainly stated at cost determined by the moving-average method (the amount stated in the balance sheet is calculated by writing down the book value based on a decline in profitability).
2. Depreciation and amortization method for significant depreciable assets

1. Property, plant and equipment (excluding leased assets)
   Buildings (excluding facilities attached to buildings) Straight-line method is used.
   Other tangible fixed assets Declining-balance method is used.
   However, one domestic consolidated subsidiary and five overseas consolidated subsidiaries use the straight-line method.
2. Intangible assets (excluding leased assets) Straight-line method is used.
   Note that software for internal use is amortized by the straight-line method over the estimated useful life (five years).

1. Leased assets
   Straight-line method is used, where the lease period is deemed as the useful life and the residual value is set as zero.
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1. Accounting for significant allowances and reserves
2. 1. Allowance for doubtful accounts
      The allowance for doubtful accounts is provided for possible losses on receivables based on the historical write-off ratio for general receivables and on the estimated amount of uncollectible receivables based on a case-by-case determination of collectibility for specific receivables such as doubtful receivables.
   2. Provision for bonuses
      To provide for the payment of bonuses to employees, an amount accrued for the current fiscal year is recorded based on the estimated amount of payment.
   3. Provision for share awards
      To provide for the payment of Company stock to employees in accordance with stock awards regulations, a provision for share awards is recorded based on the estimated amount of the share awards obligation as of the end of the current fiscal year.
3. Accounting standards for revenues and expenses
   The Company recognizes revenues at the time control over promised goods or services is transferred to the customers in the amount expected to be received upon the exchange of said goods or services, applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations.
4. 1. Information on contracts and obligations
      The Group engages in sporting goods-related businesses. The Group recognizes revenues at the point where merchandise is delivered to customers, judging that obligations are fulfilled at such point.
   2. Information on the calculation of transaction prices and the amount of transaction prices allocated to obligations
      The Company recognizes revenues within a scope wherein significant reversal is extremely unlikely to occur, deducting discounts calculated on the basis of results for each customer and estimates such as those for returned goods from prices established in contracts.
   3. Information on the calculation of the amount allocated to obligations
      The Group has a customer loyalty program, and offers members points according to the amount of their purchase. Granted points are identified as obligations. Transaction prices are allocated on the basis of standalone selling prices calculated by taking expected future expiration, etc. into consideration. Revenues are recognized at the point where points are used.
5. Other important matters for the preparation of consolidated financial statements
6. 1. Basis of translation of significant assets or liabilities denominated in foreign currencies into Japanese yen
      Monetary receivables and payables denominated in foreign currencies are translated into yen at the spot exchange rates prevailing on the consolidated closing date, with translation differences recognized as gains or losses. Assets, liabilities, revenues, and expenses of overseas subsidiaries are translated into yen at the spot exchange rates on the closing date of the overseas subsidiaries, and the translation differences are included in the foreign currency translation adjustment account under "Net assets."
   2. Significant hedge accounting method
   3. 1. Hedge accounting method Deferred hedge accounting is used.
         However, the Company applies the special treatment for interest rate swaps that meet the requirements for special treatment and the allocation treatment for forward exchange contracts
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that meet the requirements for allocation treatment.

1. 1. Hedging instruments and hedged items
      Hedging instruments
      Interest rate swaps and forward exchange contracts
      Hedged items
      Interest on borrowings, anticipated transactions denominated in foreign currencies, receivables and payables denominated in foreign currencies
   2. Hedging policy
      Hedging is conducted within the scope of the target receivables and payables to reduce interest rate risk and foreign exchange fluctuation risk.
   3. Methods of evaluating the effectiveness of hedges
      The effectiveness of hedging activities is evaluated by comparing market fluctuations or cash flow fluctuations of the hedging instruments with those of the hedged items and by observing correlations.
2. Accounting for retirement benefits

1. 1. Method of attributing estimated retirement benefits to periods of service
      In calculating the retirement benefit obligation, the estimated amount of retirement benefits is attributed to the period up to the end of the current fiscal year based on the benefit calculation method.
   2. Method of amortization of actuarial differences
      Actuarial gains and losses are amortized by the straight-line method over a fixed number of years (ten years) within the average remaining service period of employees at the time of occurrence in each consolidated fiscal year, with the amount prorated from the following consolidated fiscal year of occurrence.
      Unrecognized actuarial gains and losses are recorded in accumulated adjustments for retirement benefits under accumulated other comprehensive income in net assets, after adjusting for tax effects.
2. Accounting principles and procedures adopted in cases where the provisions of relevant accounting standards, etc. are unclear
   Transfer-restricted stock compensation plan
   Remuneration, etc. paid to the Company's Directors who are not external Directors and others based on the Company's transfer-restricted stock compensation plan are expensed over their respective service periods.
3. Application of the group tax sharing system
   The Company and some of its consolidated subsidiaries are transitioning from the consolidated taxation system to the group tax sharing system from the current fiscal year.

5. Changes in accounting policies

Application of the Implementation Guidance on Accounting Standard for Fair Value Measurement

The Company has applied the "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No. 31, June 17, 2021), and it has decided to apply the new accounting policy provided for by the Implementation Guidance on Accounting Standard for Fair Value Measurement prospectively in accordance with the transitional measures provided for in paragraph (27)-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement. This does not affect the consolidated financial statements.

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