Slide 1: Materials for Briefing Session on Q3 Financial Results FY Ending March 2023
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2023 February 7, 2023
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2023 3 ●Overview of Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2023 7 ●Plans for the Fiscal Year Ending March 31, 2023 17 ©2023 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, 2023 ©2023 WORKMAN CO., LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement （Millions of yen） FY 3/22 FY 3/23 YoY ➢ Financial Results Highlights Q3 Ｑ3 （％） ●Sales at all chain stores Sales at all chain stores 125,963 137,871 +9.5 ・With the impact of the weather and increasing demand for outings, the external environment worked positively, and sale
Slide 5: Cumulative Selling, General and Administrative Expenses (SG&A)
Cumulative Selling, General and Administrative Expenses (SG&A) SG&A SG&A FY 3/22 FY 3/23 (Millions of yen) ratio ratio Change YoY (％) Q3 （％） Q3 （％） ➢ Factors of increase/decrease Sales at all chain stores 125,963 － 137,871 － － +9.5 ●Labor cost The average number of employees during the quarter +14 L
Slide 6: Balance Sheet
Balance Sheet FY 3/22 FY 3/23 FY 3/22 （Millions of yen) End of Q3 End of Q3 Change Current assets 89,924 94,266 97,867 +3,600 ➢ Factors of increase/decrease Cash and deposits 64,969 64,283 70,126 +5,843 ●Cash and deposits Operating C/F 15,313 million yen Accounts receivable - due from FCs 10,121 11,
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, 2023 ©2023 WORKMAN CO., LTD. All Rights Reserved 7
Slide 8: Store Openings: 977 stores at the end of December 2022
Store Openings ●We sought sustainable growth through new store openings tailored to customer needs The first department store branch opened in October 2022 (the Kichijoji Store of Tokyu Department Store), and the renovation of “WORKMAN Pro” began. 977 stores at the end of December 2022 (up 33 stores
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 40 Q1 overview Q2 overview Q3 overview As COVID-19-related As there was demand to bring Monthly sales 34.5 r
Slide 10: Status of Sales (FY 3/23 Q3)
Status of Sales (FY 3/23 Q3) ● Sales at All Chain Stores 137,871 Million Yen ●Sales at existing stores All chain stores Existing stores by prefecture Net sales +9.5％ +3.5％ The number of prefectures with YoY sales Number of customers +8.2％ +2.6％ declines increased in the Western Japan region, as Aver
Slide 11: Status of Sales (Results by Product)
Status of Sales (Results by Product) ●Sales of products for the athleisure market grew significantly with support from professional artisans ●Factors for Increase/Decrease in FY 3/23 Q3 ●FY 3/23 Q3 Sales by Product Sales at All Chain Stores （100 millions of yen） Athleisure Work Common (Hundreds of m
Slide 12: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) Sales at newly opened stores fared well, while S&B and renovation of existing stores contributed to growth. （％） WORKMAN New Format Sales Composition Ratio (based on all chain stores) 49.6% 50.4% YoY (％
Slide 13: 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 Q3 FY 3/23 Q3 Category Sales YoY Sales YoY Factors（YoY） ・Summer supplies (+16.0％) Undergarments・Socks Undergarments, socks, hats, towels, etc. 11,860 +10.9 13,635 +15.0 ・Winter inner shirts
Slide 14: Sales of PB Products
Status of Sales (Sales by Product and Factors) ●Sales of PB Products 90,909 Million Yen (Up 15.7％ 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 718（493） 36,721（+
Slide 15: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 95.9％ (up 0.2 points YoY) ●Format of Store Operations for FY 3/23 Q3 ●Number of Stores by Format of Operations SC Training stores End- End- Outsourcing stores (Contract B) Franchise stores (Contract A) Format March Up Down Dec. Number FC ratio （％
Slide 16: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●Thorough and efficient inventory management helped improve inventory turnover days and the delivery cost ratio ●Selling price inventories per store ●DC inventories / delivery cost ratio ・Inventory control of seasonal products progressed smoothly. ・Inventories of autumn
Slide 17: Plans for the Fiscal Year Ending March 2023
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2023 ©2023 WORKMAN CO., LTD. All Rights Reserved 17
Slide 18: 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 opening in accordance with customer needs to enhance convenience. Sustainable Growth Stories ●Develop new functions and categories, including work re
Slide 19: Store Opening Plans
Store Opening Plans ●Aim for 1,500 domestic stores through the promotion of new business categories and store development in urban areas Number Openings set for FY 3/23 Renovation set for FY 3/23※2 Number of Medium/ of stores stores at (Number of stores) S＆B※3 Closures longer-term at end of Full Par
Slide 20: Store Opening Strategy
Store Opening Strategy ●We began the verification of WORKMAN PlusⅡ The Niitsu store (Niigata Prefecture) opened in January 2023 ●Concept I. Plus product lineups of #WORKMAN GIRL and WOMEN’S WORK Shoes at Plus stores II. Plus further customer satisfaction with full product lineups WOMEN’S JUNIOR SHOE
Slide 21: Presentation of 2023 Spring/Summer New Products
Presentation of 2023 Spring/Summer New Products ●Theme: “Play up designability with stealthy function” We will transform images and bring growth to the next stage ✓ Along with the expanded development of #WORKMAN GIRL, it is necessary to approach a broader range of customers in fashion and other are
Slide 22: Product Development (PB Products)
Product Development (PB Products) ●Expand products that capture customer needs ●Develop new categories in major fields ●Responses to labor shortages Camp Gear ●The third series of camp gear released Extend the work life with comfortable work Expand large products and bring the product line closer to
Slide 23: Impacts of Sharp Rises in Purchase Prices
Impacts of Sharp Rises in Purchase Prices ●We are planning to keep prices of core products unchanged for autumn/winter 2023 as well ・We plan to conclude forward contracts for FY 3/24 purchases after assessing the market situation ●Issues in product procurement ●Status as of Q3 ●Responses to issues a
Slide 24: Sales Strategy/Market Trends
Sales Strategy/Market Trends ●Enhance productivity at stores through digitalization ●Impacts of price increases ●Effective use of BOPIS (Buy Online, Pick-Up in Store) ✓ As weather impacts and the effects of store re- Resolve the issue of sales floor space and expand the product lineups General openi
Slide 25: Plans for the Fiscal Year Ending March 2023
Plans for the Fiscal Year Ending March 2023 ●As the yen rose faster than assumed, profits remained steady. The full-year plan remains unchanged. （％） FY 3/23 Plans Progression rate Sales at all chain stores Sales at all chain stores 81.8％ 168,634 million yen YoY+7.7％ Progression rate Total operating
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