Slide 1: Materials for Briefing Session on Q3 Financial Results, FY Ending March 2022
JASDAQ（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022 February 8, 2022
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Third Quarter of the Fiscal Year Ending 3 March 31, 2022 ●Overview of Financial Results for the Third Quarter of the Fiscal 8 Year Ending March 31, 2022 ●Plans for the Fiscal Year Ending March 31, 2022 18 ©2022 WORKMAN CO.,LTD. All Rights Reserved 2
Slide 3: Financial Results for the Third Quarter
Briefing Contents ●Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022 ©2022 WORKMAN CO.,LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement （Millions of yen） FY3/21 FY3/22 ➢ Financial Results Highlight YoY Q3 Ｑ3 ●Sales at all chain stores Sales at all chain stores 117,696 125,963 +7.0 ・Sales reached the assumed line for the cumulative period. ・The higher base sales helped existing stores achieve growth at cru
Slide 5: Effect of the Application of the Accounting Standard for Revenue Recognition (P/L)
Effect of the Application of the Accounting Standard for Revenue Recognition (P/L) FY3/22 Q3 FY3/22 Q3 （Millions of yen) Effect Pre-change Post-change ➢ Effect of the Change ●Profit Sales at all chain stores 125,971 125,963 △8 ① Effect of the change to recording royalties by allocation to appropriat
Slide 6: Effect of the Application of the Accounting Standard for Revenue Recognition (SG&A)
Effect of the Application of the Accounting Standard for Revenue Recognition (SG&A) FY3/21 Q3 FY3/22 Q3 YoY (％) FY3/22 Q3 Effect (Millions of yen) Pre-change (a) Pre-change (b) b／a Post-change (c) ｃ－b Labor cost 2,485 2,658 +7.0 2,658 － Selling cost 918 591 △35.6 802 +211 Traveling 185 209 +13.0 209
Slide 7: Balance Sheet
Balance Sheet FY3/21 FY3/22 （Millions of yen) End of Q3 FY3/21 End of Q3 Change ➢ Factors of increase/decrease Current assets 82,499 85,696 89,924 4,228 ●Cash and deposits Operating C/F - 18,292 million yen Cash and deposits 56,881 57,813 64,969 7,156 Investing C/F - Down 5,756 million yen Accounts
Slide 8: Overview of Financial Results for the Third Quarter
Briefing Contents ●Overview of Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022 ©2022 WORKMAN CO.,LTD. All Rights Reserved 8
Slide 9: Store Openings
Store Openings ●Opening of the new business category “WORKMAN Pro” 935 stores at the end of December 2021 (up 29 stores over end-March 2021) Number of New store openings Renovation/conversion※2 Number of stores at Partial stores at (Number of stores) S＆B※3 Full Closures end-March Roadside SC※3 renov
Slide 10: Monthly Trends and Factors
Monthly Trends and Factors ● Rise/Fall in Same-Store Sales, Number of Customers and Average Customer Spending （％） Rise/fall in sales Rise/fall in number of customers Q1 overview 60 Media exposure grew following Average customer spending The spring and summer selling the holding of “Grueling Fashion
Slide 11: Status of Sales (Results by Product)
Status of Sales (Results by Product) ●Products for the athleisure market drove growth, products for professionals remained steady ●Factors for Increase/Decrease in FY3/22 Q3 Sales at All Chain Stores ●FY3/22 Q3 Sales by Product （100 millions of yen） Athleisure Work Common (Hundreds of millions of ye
Slide 12: Status of Sales (FY3/22 Q3)
Status of Sales (FY3/22 Q3) ● Sales at All Chain Stores 125,963 Million Yen ●Sales at existing stores All chain stores Existing stores by prefecture Net sales +7.0％ +1.5％ Initial-year sales were strong in areas with new Number of customers +6.0％ +0.7％ store openings, and the number of areas with low
Slide 13: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) The effective openings of new stores and the renovation of WORKMAN Plus stores pushing up sales at （％） existing stores combined to help maintain growth. WORKMAN WORKMAN Plus 39.1% Sales Composition Rat
Slide 14: 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） FY3/21 Q3 FY3/22 Q3 Category Factors（YoY） Sales YoY Sales YoY ・Outdoor caps (+130.7％) Undergarments・Socks 10,697 +27.3 11,860 +10.9 ・Thermal inner shirts (+20.7％) ・Thermal tights (△12.5％) ・Thermal
Slide 15: Sales of PB Products 78,857 Million Yen (Up 12.3% YoY)
Status of Sales (Sales by Product and Factors) ●Sales of PB Products 78,857 Million Yen (Up 12.3％ YoY) ●WORK ＆ Outdoor・Sports ●Changes in the PB ratio （The ratio to sales at all chain stores) Number of items （Millions of yen） (the previous year) Sales value (YoY) (％) Work & Outdoor 493（388） 25,418（+
Slide 16: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 95.6％（up 0.6 points YoY) ●Format of Store Operations for FY3/22 Q3 ●Number of Stores by Format of Operations SC Training stores End- Outsourcing stores (Contract B) Franchise stores (Contract A) FY3/22 Number （％） Format March Up Down FC ratio Q3
Slide 17: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●Sales of winter products fared well ●Selling price inventories per store ●DC inventories / delivery cost ratio ・With sales of winter products faring well, ・The controlling of inventories and costs is moving ahead inventory costs came to settle close to the level of last
Slide 18: Plans for the Fiscal Year Ending March 2022
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2022 ©2022 WORKMAN CO.,LTD. All Rights Reserved 18
Slide 19: Plans for FY Ending March 31, 2022
Plans for FY Ending March 31, 2022 Establishment of new business categories, Logistics policy new formats Store ・Accelerate opening of #WORKMAN GIRL roadside stores opening ・Isesaki Distribution Center expansion ・Open stores in commercial districts, areas in front of train stations (vacant lots) pol
Slide 20: Go for 1,500 domestic stores in 3 categories
Store Opening Plans ●Go for 1,500 domestic stores in 3 categories Number Openings set for FY3/22 Renovation set for FY3/22※2 Number of Medium/ of stores stores at (Number of stores) S＆B※3 Closures longer-term at end of Full Partial end of Roadside SC※3 goals FY3/21 renovation renovation FY3/22 632 －
Slide 21: WORKMAN Pro
WORKMAN Pro ●New business category designed to ease decline in satisfaction of customers and franchise stores • With the higher base sales, further segmentation of store categories determined as necessary for stable growth. • The product lineup is basically the same as WORKMAN, but the new category
Slide 22: Opening and franchising of WORKMAN GIRL stores at open malls
●We started the opening and franchising of WORKMAN GIRL stores at open mall shopping centers Task Progress/In-house evaluation ・Stores are performing favorably, as the number of customers visiting open malls tends to grow in synergy with other chains. ⇒Open malls showing good responses (we plan to o
Slide 23: Camp Gear
Camp Gear ●We will make a full-scale entry into the camp gear market in response to user requests. ・“Camp Gear & New Spring/Summer Products Rollout Event” planned for Tuesday, February 22. ・We will have a crack at new sales channels for exclusive products for online purchase and pick up at stores. U
Slide 24: Response Policy to Sharp Rises in Purchase Prices
Response Policy to Sharp Rises in Purchase Prices ●We have declared “a price freeze” for PB products. ・We will consider changing producing countries to maintain prices, with some products revised or eliminated to maintain affordability. ●Problems involved in product procurement Background to the pri
Slide 25: 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（No change from the plan at the beginning of the current fiscal year） FY3/22 Plans （％） Sales at all chain stores Progression rate 156,174 Sales at all chain stores million yen YoY+6.5％ 80.7％ Tota
Slide 26: 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 ac