Slide 1: Materials for Briefing Session on Financial Results for FY Ending March 31, 2022
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Fiscal Year Ending March 31, 2022 May 10, 2022
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Fiscal Year Ending March 31, 2022 3 ●Overview of Financial Results for the Fiscal Year Ending March 31, 2022 9 ●Plans for the Fiscal Year Ending March 31, 2023 19 ©2022 WORKMAN CO.,LTD. All Rights Reserved 2
Slide 3: Financial Results for the Fiscal Year Ending March 31, 2022
Briefing Contents ●Financial Results for the Fiscal Year Ending March 31, 2022 ©2022 WORKMAN CO.,LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement YoY Forecast for Compared ➢ Financial Results Highlights （Millions of yen） FY3/21 FY3/22 FY3/22 with Plan （％） ●Sales at all chain stores Came in roughly as planned at 0.3% over the plan for the full year Sales at all chain stores 146,653 156,597 +6.8 156,174 +0.3 ●Total o
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 FY3/22 （Millions of yen) Effect Pre-change Post-change ➢ Effect of the Change ●Profit Sales at all chain stores 156,609 156,597 △11 ① Effect of the change to recording royalties by allocation to appropriate acc
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 FY3/22 YoY (％) FY3/22 Effect (Millions of yen) Pre-change (a) Pre-change (b) b／a Post-change (c) ｃ－b Labor cost 3,319 3,535 +6.5 3,535 － Selling cost 1,113 818 △26.5 972 +154 Traveling 239 266 +11.5 266 － expe
Slide 7: Balance Sheet
Balance Sheet FY3/21 FY3/22 （Millions of yen) Change ➢ Factors of increase/decrease Current assets 85,696 94,266 +8,569 ●Cash and deposits Cash and deposits 57,813 64,283 6,469 Operating C/F - 18,451 million yen Accounts receivable Investing C/F - Down 9,631 million yen - due from FCs 11,884 11,944
Slide 8: Statement of cash flows
Statement of cash flows （Millions of yen） FY3/21 FY3/22 Change ➢ Principal factors of increase/decrease Net cash provided by (change from the previous year) (used in) operating 6,689 21,319 14,629 activities ●Operating C/F ・Pretax net income Up 1,957 million yen Net cash provided by ・Accounts payabl
Slide 9: Overview of Financial Results for the Fiscal Year Ending March 31, 2022
Briefing Contents ●Overview of Financial Results for the Fiscal Year Ending March 31, 2022 ©2022 WORKMAN CO.,LTD. All Rights Reserved 9
Slide 10: Store Openings
Store Openings ●Development of stores for sustainable growth 944 stores at the end of March 2022 (up 38 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 renovation end
Slide 11: 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 37.2 The spring and summer selling season got off to a Sales of “air-conditioning
Slide 12: Status of Sales (Results by Product)
Status of Sales (Results by Product) ●Products for the athleisure market drove growth ●Factors for Increase/Decrease in FY3/22 Sales at All Chain Stores ●FY3/22 Sales by Product （100 millions of yen） Athleisure Work Common (Hundreds of millions of yen) 582.17 618.38 Sales at all chain stores +0.3％ +
Slide 13: Status of Sales (FY3/22)
Status of Sales (FY3/22) ● Sales at All Chain Stores 156,597 Million Yen All chain stores Existing stores Net sales +7.0％ +1.5％ ●Sales at existing stores by prefecture Number of customers +6.0％ +0.7％ Average number of customers － ※174 (+1) per day 2,913 yen 2,898 yen Average customer spending Same s
Slide 14: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) The customer-increasing effect of store remodeling (the first year) is continuing, but maintaining sales from the second year onward remains a major challenge. （％） WORKMAN WORKMAN Plus 39.6% Sales Comp
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） FY3/21 FY3/22 Category Sales YoY Sales YoY Factors（YoY） ・ Short socks（+9.1％） Undergarments・Socks 13,179 +25.3 14,865 +12.8 ・Thermal inner shirts （+38.3％） ・Outdoor caps（+103.2％） ・Short-sleeved T-shi
Slide 16: Sales of PB Products 97,797 Million Yen
Status of Sales (Sales by Product and Factors) ●Sales of PB Products 97,797 Million Yen (Up 12.0％ 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 642（473） 31,746（+
Slide 17: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 95.7％（up 0.7 points YoY) ●Format of Store Operations for FY3/22 ●Number of Stores by Format of Operations SC Training stores End- Outsourcing stores (Contract B) Franchise stores (Contract A) Number （％） Format March Up Down FY3/22 FC ratio 2021 o
Slide 18: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●The inventory turnover period in days and the delivery cost ratio improved thanks to thorough and efficient inventory management ●Selling price inventories per store ●DC inventories / delivery cost ratio ・The inventory turnover period in days shortened by 3 days ・The de
Slide 19: Plans for the Fiscal Year Ending March 31, 2023
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2023 ©2022 WORKMAN CO.,LTD. All Rights Reserved 19
Slide 20: Plans for FY Ending March 31, 2023: Sustainable Growth Stories
Plans for FY Ending March 31, 2023 ●Management policy Store ●Open a wide array of stores in terms of locations, categories and sizes, and develop them in opening accordance with customer needs to enhance convenience. Sustainable ●Develop new functions and categories, including work refortifying, amb
Slide 21: Store Opening Plans
Store Opening Plans ●Go for 1,500 domestic stores in 3 categories Number Openings set for FY3/23 Renovation set for FY3/23※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 FY3/22 renovation renovation FY3/23 559 －
Slide 22: Store Opening Strategy
Store Opening Strategy ●Develop stores in accordance with customer needs Target: Target: Aim to acquire general customers by broadening Revitalization of existing stores through store-opening locations and areas remodeling and S&B ●Store openings in urban areas Aim for domination of low store densit
Slide 23: Product Development
Product Development ●Development of sustainable products with functionality at their core ●FY3/2023 PB products sales target 1,128 million yen（YoY +15.3％） Expansion of lineup of Refortifying work women’s clothing Outdoor/Sports 01 02 03 ・PRO CORE brand expansion ・Development of new categories ・Joint
Slide 24: Response Policy to Sharp Rises in Purchase Prices
Response Policy to Sharp Rises in Purchase Prices ●Despite increasing pressure on purchase prices, we will stick to “the price freeze” for PB products ・In view of the market environment and the Company’s business environment, we have concluded that “price raises” present a risk from a long-term pers
Slide 25: Sales Strategy
Sales Strategy ●Promote the attraction of customers to stores, and seek to enhance the productivity of franchise stores ●EC ordering / sales for in-store pick-up ●PR strategy BOPIS (Buy Online Pick-up In Store) Workman “ Jimi“ channel to be launched （around October 2022） Focus on products not taken
Slide 26: Sustainability
Sustainability ※We plan to post specific initiatives on the Company website. ●We will improve the disclosure of our current initiatives, and then deepen and expand them ●Policy ●Materiality（important issues） We will respect the working environment and fundamental human rights, and supply 01. safe an
Slide 27: Plans for the Fiscal Year Ending March 2023
Plans for the Fiscal Year Ending March, 2023 ●Expectation of increased income but decreased profits due to sharp rises in purchase prices ➢ Topics FY3/2023 ●Sales at all chain stores FY3/2022 YoY FY3/2023 QoQ YoY The plan does not include changes in the external environment, such as the （Millions of
Slide 28: 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) 224.28 ratio of Dividend payout ratio (%) 進捗率 80.7％208.80 205.65 We regard the maintaining of an appropriate distribution
Slide 29: ■We have prepared this document solely for the purpose of facilitating understanding of WORKMAN,
■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