Slide 1: Materials for Briefing Session on Q3 Financial Results, FY Ending March 31, 2025
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2025 February 10, 2025
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Third Quarter of the Fiscal Year 3 Ending March 31, 2025 ●Overview of Financial Results for the Third Quarter of the 7 Fiscal Year Ending March 31, 2025 ●Plans for the Fiscal Year Ending March 31, 2025 17 ©2025 WORKMAN CO., LTD. All Rights Reserved 2
Slide 3: Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2025
Briefing Contents ●Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2025 ©2025 WORKMAN CO., LTD. All Rights Reserved 3
Slide 4: Cumulative Income Statement
Cumulative Income Statement ➢ Financial Results Highlights （Millions of yen） FY 3/2024 FY 3/2025 YoY Q3 Ｑ3 （％） ●Sales at all chain stores ・Hot weather in October caused sales to drop significantly below the planned figures, and despite growth in sales in November and Sales at all chain stores 141,36
Slide 5: Cumulative Selling, General and Administrative Expenses (SG&A)
Cumulative Selling, General and Administrative Expenses (SG&A) SG&A SG&A FY 3/2024 FY 3/2025 ➢ Factors of increase/decrease (Millions of yen) ratio ratio Change YoY (％) Q3 Q3 （％） （％） ●Labor cost Sales at all ・Regular salary increase: +5.1％. Average number of employees chain stores 141,368 － 148,214
Slide 6: Balance Sheet
Balance Sheet FY 3/2024 End of FY 3/2025 Change （Millions of yen) Q3 FY 3/2024 Q3 ➢ Factors of increase/decrease Current assets 108,144 112,648 120,879 +8,231 ●Cash and deposits Cash and deposits 72,582 68,187 88,656 +20,468 ・Free cash flow: +26,107 million yen ・Payments of dividends: △5,548 million
Slide 7: 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, 2025 ©2025 WORKMAN CO., LTD. All Rights Reserved 7
Slide 8: Store Openings
Store Openings ●＃WORKMAN GIRL store openings were accelerated, along with the full-scale launch of Plus II store development. 1,037 stores at the end of December 2024 (up 26 stores over end-March 2024) Number of New store openings Excluding Number of stores at increase stores at (Number of stores) S
Slide 9: 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 Q1 overview Q2 overview Q3 overview While seasonal products sold steadily, In addition to growth in the sales
Slide 10: Status of Sales
Status of Sales ●Sales at All Chain Stores 148,214 Million Yen ●Sales at existing stores by prefecture All chain stores Existing stores ・Sales were sluggish in cold and snowy areas like Hokkaido and Tohoku due to the warm winter weather in October. Net sales +4.8％ +1.5％ ・In areas west of Kanto, wher
Slide 11: Status of Sales (Results by Product)
Status of Sales (Results by Product) ●Products for the general market drove sales, and while products in the work category have remained steady, there were challenges. ●Trends in the sales ※1.Sales are calculated by product. These are not the product of a customer analysis. ※2.Calculations exclude p
Slide 12: Sales by Business Category
Sales by Business Category ●Contribution to sales at all chain stores (Monthly cumulative period) New stores and new S&B locations are maintaining robust sales. The drop in sales at existing #WORKMAN GIRL stores has lessened. （％） 106.0 2.6 104.8 105.0 104.0 △ 0.2 8.1% 1.1% 103.0 0.5 0.0 0.6 102.0 1.
Slide 13: Status of Sales (Sales by Product and Factors)
Status of Sales (Sales by Product and Factors) ●Categories where women’s and casual items have been enhanced performed well. （Millions of yen） FY 3/2024 Q3 FY 3/2025 Q3 Category Factors (YoY) Sales YoY Sales YoY ・Ladies’ thermal undergarments (+152.0％) Undergarments・Socks Undergarments, socks, hats,
Slide 14: Status of Sales: Sales of PB Products
Status of Sales (Sales by Product and Factors) ●Sales of PB Products 101,145 Million Yen (Up 5.8％ YoY) ●Sales results by brand ●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) 80.0% Work & Outdoor 1,009 (+113) 3
Slide 15: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 93.4％ (△0.8 pts YoY) ●Format of Store Operations for FY 3/25 Q3 ●Number of Stores by Format of Operations SC Training stores End- End- Outsourcing stores (Contract B) Franchise stores (Contract A) Number Format March Up Down Dec. of stores FC rat
Slide 16: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●While consumption of winter product inventories is making good progress in stores, there is still a surplus of inventories at distribution centers. ●Selling price inventories per store ●DC inventories / delivery cost ratio ・Sales of winter product inventories are procee
Slide 17: Plans for the Fiscal Year Ending March 2025
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2025 ©2025 WORKMAN CO., LTD. All Rights Reserved 17
Slide 18: Plans for FY Ending March 31, 2025: Management Policy
Plans for FY Ending March 31, 2025 ●Management Policy 1. order to revitalize existing stores. Maintain sales growth by aggressively opening stores and improving operations in 2. a flexible pricing policy. Improve profitability by developing products with increased added value and adopting Store Open
Slide 19: Workman Colors
Workman Colors ●Business categories for the general public will be integrated under “Workman Colors” in order to further expand the customer base. Concept “Colors”＝ Expressing what WORKMAN is known for: individuality and unique features Functionality Design Low Price Colors Colors Colors ① Functiona
Slide 20: Store Opening Plans
Store Opening Plans ●Opening of new Workman Colors stores and renovation starting with #WORKMAN GIRL stores will begin. Number of Openings set for FY 3/25 Excluding Number of Medium/ stores at increase/ (Number of stores) S＆B※2 Renovation Closures stores at end longer-term end of FY decrease Roadsid
Slide 21: Product Development
Product Development ●In line with the store rebranding, develop exclusive products that highlight the strengths of each business category Promote the shift to casualwear Reinforce workwear ¥1,900 Wonder Stretch SERIES ¥1,500 Ultimate value for money All features included ・Develop core products for m
Slide 22: Pricing Policy
Pricing Policy ●Maintain profitability by reviewing prices from spring/summer 2025 onward ●Average settlement rate (accounting period) ●Forecast for the profit margin related to overseas ・Maintain a stable settlement rate despite the ongoing purchases (cumulative) weakening of the yen. ・While the co
Slide 23: Sales Strategy
Sales Strategy ●Hold small-scale physical exhibitions with clear themes ●Overview ●Schedule (planned) nning Sale ・Disseminate Timing Contents a ・Merchandising t pl sp information on official ・Secure two weeks’ worth c r social media accounts of inventory after events ・Invite influencers and du om me
Slide 24: Plans for the Fiscal Year Ending March 2025
Plans for the Fiscal Year Ending March 2025 ●In general, progress has been in line with the plan up to Q3. There is no change in the full- year earnings forecast. （％） Sales at all chain stores 183,980 Million yen YoY +5.0％ Sales at all chain stores Rate of progression 80.6％ Total operating revenue 1
Slide 25: 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