Slide 1: Materials for Briefing Session on the Financial Results for the Fiscal Year Ended March 31, 2021
JASDAQ（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Fiscal Year Ended March 31, 2021 『New Standards for Functions and Prices』 May 11, 2021
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Fiscal Year Ended March 31,2021 ……………… P.3 ●Overview of Financial Results for the Fiscal Year Ended March 31,2021 …P.9 ●Plans for the Fiscal Year Ending March 31, 2022……… P.20 ©2021 WORKMAN CO.,LTD. All Rights Reserved 2
Slide 3: Financial Results for the Fiscal Year Ended March 31, 2021
Briefing Contents ●Financial Results for the Fiscal Year Ended March 31,2021 ©2021 WORKMAN CO.,LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement FY3/20 FY3/21 （Millions of yen） Factors of increase/decrease Amount Amount YoY Sales at all chain stores 122,044 146,653 +20.2 Sales to directly managed stores 8,681 9,566 +10.2 Sales to franchise stores 113,363 137,086 +20.9 Same store sales － － +14.2 Total operating rev
Slide 5: Cumulative income statement
Cumulative income statement FY3/20 FY3/21 （Millions of yen) Factors of increase/decrease Amount Amount YoY Purchases from overseas down 2.6% YoY, the average settlement Gross profit 10,557 12,638 +19.7 rate: 105.68 yen Profit on purchases from overseas up 24.1% YoY to 9,328 m. yen Adjusted OP before
Slide 6: Quarterly income statement
Quarterly income statement FY3/20 Q4 FY3/21 Q4 （Millions of yen） Amount YoY Amount YoY Sales at all chain stores 25,542 +27.6 28,956 +13.4 Same store sales － +21.2 － +7.1 Total operating revenue 20,748 +26.9 22,713 +9.5 Selling, general and 4,119 +35.0 4,291 +4.2 administrative expenses Operating pr
Slide 7: Balance Sheet
Balance Sheet （Millions of yen） FY3/20 FY3/21 Change Factors of increase/decrease Current assets 73,764 85,696 11,931 Operating CF 21,319 m. yen Cash and deposits 45,240 57,813 12,572 Investing CF △4,540 m. yen Financing CF △4,206 m. yen Accounts receivable- 13,674 11,884 △1,790 Number of stores cov
Slide 8: Statement of cash flows
Statement of cash flows （Millions of yen） FY3/20 FY3/21 Change Net cash provided by (used in) operating activities 6,689 21,319 14,629 Net cash provided by (used in) investment activities 4,423 △4,540 △8,964 Net cash provided by (used in) financing activities △3,093 △4,206 △1,112 Net increase (decre
Slide 9: Overview of Financial Results for the Fiscal Year Ended March 31, 2021
Briefing Contents ●Overview of Financial Results for the Fiscal Year Ended March 31, 2021 ©2021 WORKMAN CO.,LTD. All Rights Reserved 9
Slide 10: Store Openings
Store Openings ● First Store in Miyazaki Pref., Stores Deployed in All Prefectures 906 stores as of the end of March 2021 (Up 38 YoY) Number New store openings Renovation/conversion※2 Number of stores of stores at end- Closure at end- March Full Partial March （単位：店数） Roadside SC※1 S＆B※1 renovation r
Slide 11: Status of Operations by Region
Status of Operations by Region+ ● Same-store sales rose YoY in all prefectures Hokuriku/Koushinetsu region Tokai region Hokkaido/Tohoku region Prefecture Stores Same store sales Prefecture Stores Same store sales Prefecture Stores Same store sales name (Change) YoY (%) name (Change) YoY (%) name (Ch
Slide 12: Monthly Trends and Factors
Monthly Trends and Factors ● Rise/Fall in Same-Store Sales, Number of Customers and Average Customer Spend 2Q Overview 3Q Overview Rise/fall in sales Sales of summer items started slowly, affected by low Sales of autumn/winter items were robust amid media exposure increased following the Harsh Rise/
Slide 13: Status of Sales (Cumulative for FY3/21)
Status of Sales (Cumulative for FY3/21) ● Sales at All Chain Stores 146,653 Million Yen All chain stores Existing stores Net sales +20.2％ +14.2％ Number of customers +19.3％ +13.8％ Average number of － ※166 (+21) customers per day Average customer spend 2,833 yen (+0.7％) 2,815 yen (+0.3％) Unit price pe
Slide 14: Status of Sales (Sales by Business Category)
Status of Sales (Sales by Business Category) ● Contribution to sales at all chain stores (Monthly cumulative period) ・Growth in same-store sales slowed somewhat, with year-before sales strong. ・WORKMAN Plus store sales were robust in the first year of renovation, but may face growth problems （％） in
Slide 15: Status of Sales (Sales by Product and Factors)
Status of Sales (Sales by Product and Factors) ● Sales at All Chain Stores by Product (Millions of yen) Category FY3/20 FY3/21 Factors (YoY) Sales YoY Sales YoY Family apparel ・Cooling accessories（+78.6％） Undergarments, socks, hats, 10,521 +21.1 13,179 +25.3 ・Warm shirts（+68.1％） towels, etc. ・Short-
Slide 16: Status of Sales (PB Products)
Status of Sales (PB Products) ● Sales of PB Products 87,288 Million yen (up 39.4% YoY) ・Ratio of PB products to sales at all chain stores (up 8.3 points YoY) ・1,757 items of PB products (up 331 items YoY) Number of items WORK & CASUAL Sales points (YoY） Sales value (YoY） （previous year） Work & Outdo
Slide 17: Status of Sales (Results by Product)
Status of Sales (Results by Product) ● Sales at All Chain Stores YoY by Product ・3 PB brands for the athleisure market drove growth (expanded customer base). ・Sales of products for working professionals were robust, but there is concern that the busy-ness of existing stores was accompanied by a loss
Slide 18: Format of Store Operations
Format of Store Operations ● Ratio of Franchise Stores 95.0％ (down 1.1 points YoY) Format of Store Operations for Number of Stores by Format of Operations FY Ended March 31, 2021 Number SC Training stores of stores Outsourcing stores (contract B) Franchise stores (contract A) End- 96.1 （％） End-March
Slide 19: Inventories (Logistics Cost)
Inventories (Logistics Cost) ● Inventory and delivery costs contained through production adjustment of autumn/winter items. Selling price inventories per store Inventories were reduced thanks to smooth sales of autumn/winter items. (Tens of thousands of yen) FY3/19 FY3/20 FY3/21 4,000 3,000 2,000 1Q
Slide 20: Plans for the Fiscal Year Ending March 31, 2022
Briefing Contends ●Plans for the Fiscal Year Ending March 31, 2022 ©2021 WORKMAN CO.,LTD. All Rights Reserved 20
Slide 21: Plans for FY Ending March 31, 2022
Plans for FY Ending March 31, 2022 Establishment of new business Logistics policy Store categories, new formats ・Isesaki Distribution Center expansion opening (September 2021) ・Accelerate opening of #WORKMAN GIRL roadside stores ・Open stores in commercial districts, areas in front of train policy ・W
Slide 22: Store Opening Plans
Store Opening Plans ● Go for 1,500 domestic stores in 3 categories Renovation set for FY3/22 Stores Openings set for FY3/21 ※2 Stores at Medium/ at end Closure end of longer- of (Number of stores) Roadside SC※1 S＆B※1 Full Partial FY3/22 term goals FY3/20 renovation renovation 632 (△13) － － (△13) (△6
Slide 23: Store Opening Strategy
Store Opening Strategy ● Deployment of stores for expected sustainable growth Sustainable 01. 02. 03. +α growth e.g. Shoes Open stores in low-density areas Promote scrap and build Cultivate new customer base Rainwear (new stores) (existing stores) by new business category Professional products Outdo
Slide 24: Product Development
Product Development ● Continue to create products with “surprising” functions and prices Themes for FY3/22 Given the diversification of customer needs, we will promote the development of new categories such as workwear suits and outdoor gear, and also launch a new workwear private brand in a bid 01.
Slide 25: Sales Promotion
Sales Promotion ● Maximize net sales by linking newsworthy PR and merchandizing PR Merchandizing ・Annual sales ・Promotion of the four- promotion plan season system ・Launch events for ・Production new products management ・Online exhibitions enhancement ・Prioritize release of ・Suggestions for wear sale
Slide 26: E-Commerce Sales
E-Commerce Sales ● Improve the convenience of C&C purchases to get more customers into physical stores Store search page view count In-store pickups/home delivery ratio 28 m. PV annual (+4.7 m. PV） → FY3/20 57％ Target 70％ ・The holding of effective events and higher media exposure led to a sharp rise
Slide 27: New Demand Forecast Ordering System
New Demand Forecast Ordering System ● Optimization of inventories and streamlining of store operations Features of AI utilization 01. 02. 03. Automatic choice of algorithm Automatic computation of Computation of values that (Ordering logic) optimum value from big data maximize profits Reinforcement
Slide 28: ESG Initiatives at WORKMAN
ESG Initiatives at WORKMAN WORKMAN’s SDGs WORKMAN will contribute to the realization of the Sustainable Development Goals (SDGs) through our core business. Since SDGs are long-term goals, we believe continuity is important. Our first priority is to start wherever we can through our core business, wi
Slide 29: Plans for the Fiscal Year Ending March 2022
Plans for the Fiscal Year Ending March 2022 ● Aiming for record-high net income for the 11th straight year FY3/21 Forecast for FY3/22 2Q Forecast for full FY3/22 (Millions of yen) Amount YoY Amount YoY Amount Progress Sales at all chain stores 146,653 ＋20.2 74,792 +9.5 156,174 +6.5 (Same-store sales
Slide 30: Shareholder Return
Shareholder Return ● Basic policy Changes in net income and dividends per share We target a dividend payout （Yen） （％） 30％ 250 Net income per share (yen) ratio of Dividends per share (yen) 220.00 Dividend payout ratio (%) 208.80 We regard the maintaining of an appropriate distribution of profits to o
Slide 31: Disclaimer
■We have prepared this document solely for the purpose of facilitating understanding of WORKMAN, and not for the purpose of soliciting investment in the Company. As such, investors are advised to make investment decisions at their own discretion. ■Whereas every effort has been made to ensure the acc