Slide 1: Materials for Briefing Session on Financial Results for FY Ending March 31, 2023
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Fiscal Year Ending March 31, 2023 May 10, 2023
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Fiscal Year Ending March 31, 2023 3 ●Overview of Financial Results for the Fiscal Year Ending March 31, 2023 8 ●Plans for the Fiscal Year Ending March 31, 2024 18 ©2023 WORKMAN CO., LTD. All Rights Reserved 2
Slide 3: Financial Results for the Fiscal Year Ending March 31, 2023
Briefing Contents ●Financial Results for the Fiscal Year Ending March 31, 2023 ©2023 WORKMAN CO., LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement YoY Forecast for Compared （Millions of yen） FY 3/22 FY 3/23 （％） FY3/23 with Plan ➢ Financial Results Highlights Sales at all chain stores 156,597 169,856 +8.5 168,634 +0.7 ●Sales at all chain stores ・Down 2.4 points from the Q4 accounting period Sales to directly ・In addi
Slide 5: Cumulative Selling, General and Administrative Expenses (SG&A)
Cumulative Selling, General and Administrative Expenses (SG&A) SG&A SG&A (Millions of yen) FY 3/22 ratio FY 3/23 ratio Change YoY (％) （％） （％） ➢ Factors of increase/decrease Sales at all chain stores 156,597 － 169,856 － － +8.5 ●Labor cost The average number of employees during the quarter +13 Labor c
Slide 6: Balance Sheet
Balance Sheet FY 3/22 FY 3/23 （Millions of yen) Change Current assets 94,266 101,390 +7,124 ➢ Factors of increase/decrease Cash and deposits 64,283 62,640 △1,642 ●Cash and deposits ・Free cash flow: up 9,043 million yen Accounts receivable - due from FCs 11,944 13,459 +1,514 ・Payments of dividends: d
Slide 7: Statement of cash flows
Statement of cash flows （Millions of yen） FY 3/22 FY 3/23 Change ➢ Principal factors of increase/decrease Net cash provided by (change from the previous year) (used in) operating 18,451 8,813 △9,638 activities ●Operating C/F ・Change in accounts payable: Up 677 million yen Net cash provided by ・Fall
Slide 8: Overview of Financial Results for the Fiscal Year Ending March 31, 2023
Briefing Contents ●Overview of Financial Results for the Fiscal Year Ending March 31, 2023 ©2023 WORKMAN CO., LTD. All Rights Reserved 8
Slide 9: Store Openings: 981 stores at the end of March 2023
Store Openings ●New store openings were accelerated in urban areas, open malls and other untapped areas. We sought sustainable growth through new store openings tailored to customer needs. 981 stores at the end of March 2023 (up 37 stores over end-March 2022) Number of New store openings Renovation/
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 Average customer spending 40 Q1 overview Q2 overview Q3 overview Q4 overview As COVID-19-related As there was demand to bring Monthly
Slide 11: Status of Sales (FY 3/23) 169,856 Million Yen
Status of Sales (FY 3/23) ● Sales at All Chain Stores 169,856 Million Yen All chain stores Existing stores Net sales +8.4％ +2.6％ ●Sales at existing stores by prefecture Number of customers +6.6％ +1.1％ Average number of customers Nationwide, growth is slowing － ※172 (+4) as the sales base increases.
Slide 12: Status of Sales (Results by Product)
Status of Sales (Results by Product) ●Products for the athleisure market drove growth in sales, supported by a broad range of customers ●Factors for Increase/Decrease in FY 3/23 ●FY 3/23 Sales by Product Sales at All Chain Stores （100 millions of yen） Athleisure Work Common (Hundreds of millions of
Slide 13: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) New stores contributed to growth with high sales numbers. S&B and renovation (1st year) also continued to help expand the customer base. （％） WORKMAN New Format Sales Composition Ratio (based on all cha
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） FY 3/22 FY 3/23 Category Sales YoY Sales YoY Factors（YoY） ・Summer supplies (+15.5％) Undergarments・Socks Undergarments, socks, hats, towels, etc. 14,865 +12.8 16,861 +13.4 ・Outdoor caps (+30.5％) ・La
Slide 15: Sales of PB Products 111,778 Million Yen
Status of Sales (Sales by Product and Factors) ●Sales of PB Products 111,778 Million Yen (Up 14.3％ 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 894（642） 44,828（
Slide 16: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 95.7％ (up ±0.0 points YoY) ●Format of Store Operations for FY 3/23 ●Number of Stores by Format of Operations SC Training stores End- End- Outsourcing stores (Contract B) Franchise stores (Contract A) Format March Up Down March. Number FC ratio （％
Slide 17: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●Inventories increased thanks to the early arrival of spring and summer products. ●Selling price inventories per store ●DC inventories / delivery cost ratio ・Early introduction of spring and summer products resulted in increased ・In addition to the spring and summer prod
Slide 18: Plans for the Fiscal Year Ending March 31, 2024
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2024 ©2023 WORKMAN CO., LTD. All Rights Reserved 18
Slide 19: Plans for FY Ending March 31, 2024
Plans for FY Ending March 31, 2024 ●Management policy ●Accelerate the opening of new SC stores that attract many customers, expand the Store network of stores for general customers opening ●Improve convenience by right-sizing S&B stores according to sales capacity Achieve sustainable growth by creat
Slide 20: Store Opening Plans
Store Opening Plans ●Aim for 1,500 domestic stores by accelerating the opening of SC stores and expanding the network of stores for general customers Number of Openings set for FY 3/24 Renovation set for FY 3/24※2 Number of Medium/ stores at 増減除外 stores at (Number of stores) S＆B※2 Closures longer-te
Slide 21: Store Opening Strategy
Store Opening Strategy ●Development of stores tailored to customer needs Aim to improve convenience while expanding the customer base ●WORKMAN Colors ●Accelerate opening of SC stores ●Renovation of WORKMAN Pro Fashionable on all fronts, Open stores expecting to Lock in professional with stealthy fun
Slide 22: Product Development (PB Products)
Product Development (PB Products) ●Increase added value through improved design sense and sustainability, with functionality at the core ●WORKMAN Colors ●Comfortable work products GREEN Contribute to the BLUE extension of the work life ・Develop new work markets ・Target corporate customers at first,
Slide 23: Status of Product Procurement
Status of Product Procurement ●Plan to keep prices of focus PB products unchanged We aim to improve profitability through the development of new products with higher added value and changing/eliminating existing products ●Issues in product procurement ●Status as of FY 3/2023 ●Outlook for FY 3/2024 S
Slide 24: Sales Strategy
Sales Strategy ●Expand the customer base and improve customer satisfaction ●Disseminate information to create a shared sensibility Ambassador and influencer marketing ●Leverage WORKMAN Plus stores Switch to the latest Plus store sales floor and Action 1 displays at the first batch of partially renov
Slide 25: Sustainability
Sustainability ●Enhance the promotion system in order to resolve challenges ●Results for FY 3/2023 ●To be implemented in FY 3/2024 (planned) ■Sustainable product development ■Strengthen the system for implementation ・Sustainable products: 117 items; 12,568 million yen ・Launch the Sustainability Comm
Slide 26: Plans for the Fiscal Year Ending March, 2024
Plans for the Fiscal Year Ending March, 2024 ●Although both revenue and profit are predicted to increase, SG&A will drag down the numbers, and total operating revenue will be flat ➢ Topics FY3/2024 FY3/2023 YoY FY3/2024 QoQ YoY （Millions of yen） Full-year ●Sales at all chain stores Results (％) Q2 Pl
Slide 27: Shareholder Return
Shareholder Return ● Basic policy Changes in net income and dividends per share （Yen） We target a dividend payout 250 Net income per share (yen) （％） 30％ Dividends per share (yen) Dividend payout ratio (%) 224.28 ratio of 進捗率 215.21 208.80 80.7％ 204.10 We regard the maintaining of an appropriate dist
Slide 28: 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