Slide 1: Materials for Briefing Session on the Financial Results FY Ending March 31, 2025
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Fiscal Year Ending March 31, 2025 May 12, 2025
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Fiscal Year Ending March 31, 2025 3 ●Overview of Financial Results for the Fiscal Year Ending 8 March 31, 2025 ●Plans for the Fiscal Year Ending March 31, 2026 18 ●Medium-Term Growth Vision 2030 26 ©2025 WORKMAN CO., LTD. All Rights Reserved 2
Slide 3: Financial Results for the Fiscal Year Ending March 31, 2025
Briefing Contents ●Financial Results for the Fiscal Year Ending March 31, 2025 ©2025 WORKMAN CO., LTD. All Rights Reserved 3
Slide 4: Cumulative Income Statement
Cumulative Income Statement YoY Forecast for Compared （Millions of yen） FY 3/24 FY 3/25 （％） FY3/25 with Plan ➢ Financial Results Highlights Sales at all chain stores 175,250 183,132 +4.5 183,980 △0.5 ●Sales at all chain stores Sales to directly managed stores 14,323 17,215 +20.2 17,753 △3.0 ・Sales g
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 3/2024 ratio FY 3/2025 ratio Change YoY (％) （％） （％） ➢ Factors of increase/decrease Sales at all chain stores 175,250 － 183,132 － － +4.5 ●Labor cost ・Regular salary increase: +5.1％. Average number of employe
Slide 6: Balance Sheet
Balance Sheet FY 3/24 FY 3/25 （Millions of yen) Change ➢ Factors of increase/decrease Current assets 112,648 121,066 +8,418 ●Cash and deposits Cash and deposits 68,187 80,381 +12,193 ・Free cash flow: △5,136 million yen Accounts receivable ※Deposit terms exceeding 3 months have increased by 23,000 mi
Slide 7: Statement of cash flows
Statement of cash flows （Millions of yen） FY 3/24 FY 3/25 Change ➢ Principal factors of increase/decrease Net cash provided by (used (change from the previous year) in) operating activities 15,228 24,793 ＋9,564 ●Operating C/F ・Fall in inventory assets: Up 4,534 million yen Net cash provided by (used
Slide 8: Overview of Financial Results for the Fiscal Year Ending March 31, 2025
Briefing Contents ●Overview of Financial Results for the Fiscal Year Ending March 31, 2025 ©2025 WORKMAN CO., LTD. All Rights Reserved 8
Slide 9: Store Openings
Store Openings Store openings and renovations generally made progress as planned. The expansion of Colors stores is accelerating. 1,051 stores at the end of March 2025 (up 40 stores over end-March 2024) Number of New store openings Excluding Number of stores at increase stores at (Number of stores)
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 22 Q1 overview Q2 overview Q3 overview Q4 overview While seasonal products sold In addition to growth in the s
Slide 11: Status of Sales
Status of Sales Sales at All Chain Stores 183,132 Million Yen All chain stores Existing stores ●Sales at existing stores by prefecture Net sales +4.5％ △1.1％ ・Faced with high prices, weak Number of customers +2.6％ △0.8％ demand for outdoor Average number of customers products, and declining － ※167 (±0
Slide 12: Status of Sales (Results by Product)
Status of Sales (Results by Product) Products for the general market drove sales. In the work category, while seasonal products sold well, sales were weak on a full-year basis. ●Trends in the sales ※1.Sales are calculated by product. These are not the product of a customer analysis. ※2.Calculations
Slide 13: Sales by Business Category
Sales by Business Category Contribution to sales at all chain stores (Monthly cumulative period) The effects of new store openings, S&B, and renovations are becoming apparent, as the drop-off in sales at existing stores has been getting smaller since the second year. （％） 106.0 105.0 2.6 104.5 104.0
Slide 14: Status of Sales (Sales by Product and Factors)
Status of Sales (Sales by Product and Factors) Items for women in each business category contributed to sales. （Millions of yen） FY 3/2024 FY 3/2025 Category Factors (YoY) Sales YoY Sales YoY ・Ladies’ thermal undergarments (+158.0％) Undergarments・Socks Undergarments, socks, hats, towels, etc. 18,200
Slide 15: Sales of PB Products
Status of Sales (Sales by Product and Factors) Sales of PB Products 125,261 Million Yen (Up 5.6％ 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 1,074 (+53) 48,
Slide 16: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 92.7％ (△1.5 pts YoY) ●Format of Store Operations for FY 3/25 ●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 March of stores FC ratio
Slide 17: Inventories (Logistics Cost)
Inventories (Logistics Cost) Company-wide inventory optimization is being achieved, making aggressive product planning possible going forward. ●Selling price inventories per store ●DC inventories / delivery cost ratio ・Compared to FY 3/24, winter products have decreased ・The backlog of winter produc
Slide 18: Plans for the Fiscal Year Ending March 2026
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2026 ©2025 WORKMAN CO., LTD. All Rights Reserved 18
Slide 19: Plans for FY Ending March 31, 2026: Management Policy
Plans for FY Ending March 31, 2026 ●Management Policy We will rebuild our management foundations towards sustainable growth by reinforcing workwear and evolving Colors stores. Store Opening Products Sales Increase store openings, aiming for a Develop competitive exclusive products. Improve existing
Slide 20: Store Opening Plans
Store Opening Plans Expansion of Colors stores is accelerating with new roadside store openings and renovations. We are considering new forms of store operations, such as corporate franchising with limited conditions. Number of Openings set for FY 3/25 Excluding Number of Medium/ stores at increase/
Slide 21: Product Development
Product Development We will resolve challenges with a view to sustainable growth, expand the customer base, and promote efforts to cultivate repeat customers. ●Increase professional customer ●Lock in profits by lengthening forward satisfaction exchange contracts ・Evolve EDLP ・Status of FY2026 contra
Slide 22: Sales Strategy
Sales Strategy We will boost customer satisfaction by enhancing our services, aiming to improve sales at existing stores. ●Revitalize existing stores ●Develop the WORKMAN app Renovations (FY2026 Plan) Point: Make Stores Feel New News Release ＥＣ ・Revitalize sales floors in stores where 3 years have p
Slide 23: Sustainability
Sustainability We have made steady progress in sustainability management. Materiality Policy Initiative Results Sustainable product We respect the labor environment and basic development ●Sustainable products: 220 items; 14,537 million yen 01. human rights, and supply safe and secure products. ●Prod
Slide 24: Plans for the Fiscal Year Ending March 2026
Plans for the Fiscal Year Ending March 2025 We aim to increase both revenue and profit for the second consecutive year by accelerating store openings and improving profit related to overseas purchases. FY 3/2026 ➢ Topics FY 3/2025 YoY FY 3/2026 QoQ YoY （Millions of yen） Full-year Results (％) Q2 Plan
Slide 25: Shareholder Return
Shareholder Return Changes in net income and dividends per share ● Basic policy （Yen） Net income per share (yen) （％） We regard the maintaining of an appropriate distribution of profits Dividends per share (yen) to our shareholders as an important management issue. As such, we Dividend payout ratio (
Slide 26: Medium-Term Growth Vision 2030
Briefing Contents ●Medium-Term Growth Vision 2030 ©2025 WORKMAN CO., LTD. All Rights Reserved 26
Slide 27: Medium-Term Growth Vision: Outline
Medium-Term Growth Vision: Outline Functional Wear for All With “Make new standards for functions and prices” as our corporate purpose and “Evolve for those who ask us to” as our core value, we aim for sustainable growth by providing new value. WORK ACTIVE CASUAL Comfortable Everyday Work-Related Pr
Slide 28: Roadmap
Roadmap ●New leap forward in ●Create new ●Overseas ●Full-scale overseas WORK workwear added value trial run expansion Business 01. Reinforce workwear ※1 ACTIVE Business 02. Evolve EDLP (processing trade) 03. Respond to climate change 04. Regionally-targeted workwear (cold and snowy areas, agricultur
Slide 29: Growth Strategy
Contents ■Growth Strategy ©2025 WORKMAN CO., LTD. All Rights Reserved 29
Slide 30: Growth Strategy: Expand the customer base
Growth Strategy Our growth strategy is to focus on expanding the customer base and retaining customers. We will expand business by linking store openings and sales based on our product policy, aiming to become a global brand. High Pop-up shops, selection of business partners Overseas FC Target Globa
Slide 31: Positioning
Positioning We will clarify where each business category stands, and carve out a unique position in each market. Work market map General market map High prices High prices NB Suppli NB Outdoor Outdoor Sports ers Sports E Co. WORK D Co. Specialized HC stores For For individual corporate Functionality
Slide 32: Store Opening Plans
Store Opening Plans In a generational shift, store openings will focus on WORKMAN Colors. With an expected net increase of 50 stores a year, we will aim for 1,500 stores across Japan by the fiscal year ending March 31, 2035. 1,250 1,300 (Number of stores) 1,150 1,200 1,200 1,051 1,102 260 190 225 11
Slide 33: Store Opening Strategy
Store Opening Strategy We will promote differentiation between business categories to expand opportunities for store openings. Expand the customer base so that business categories can “coexist and co-prosper” in different markets WORKMAN Plus Action ①. Store Opening Standards/Locations Action ①. ・Pu
Slide 34: Product Development: Functionality
Product Development Separate the development teams into workwear and casualwear. We will develop new materials unlike any in the world, aiming for shared use in each area, and stabilize our profit margins by lengthening forward exchange contracts. Develop work and highly Make a new leap forward func
Slide 35: Product Development (Work and Active)
Product Development (Work and Active) Reaffirming our original strengths in functionality, price, and a design with a shine to it, we will develop product lines that satisfy what customers are asking for, aiming for global development of functional wear that uses our own new materials. FY2025 FY2026
Slide 36: Product Development (Casual)
Product Development (Casual) Avoid competition among our own business categories by improving the ratio of exclusive products. We will propose a new kind of functional basic apparel that also incorporates some trends. FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 ・WORKMAN Colors ・Strengthen men’s ・Achie
Slide 37: Sales Strategy
Sales Strategy Aiming to become a convenient chain that is closely interconnected with people’s lives, including work, day-to-day activities, and hobbies, we will transform our operations and marketing approach to boost customer satisfaction. WORK CX DX Return to our roots by Keep sales floors fresh
Slide 38: Logistics Strategy
Logistics Strategy We will invest in logistics to accommodate the expansion of the store network and increased distribution due to growth in sales, automate warehouse operations to “save on manpower,” and address social issues such as the shrinking workforce and work style reforms. ●Distribution Net
Slide 39: Quantitative Goals/Capital Policy
Contents ■Quantitative Goals/Capital Policy ©2025 WORKMAN CO., LTD. All Rights Reserved 39
Slide 40: Quantitative Goals for 2030
Quantitative Goals for 2030 ●Sales at All Chain Stores ●Operating Profit ●Number of Stores FY 183,132 million yen 24,394 million yen 1,051 stores 2 （WM: 317, Plus: 645, #GIRL: 62, (operating profit ratio approx. 13.3%) 0 (same-store sales +1.1% YoY) Colors: 17, Pro: 10） 2 ※vs. sales at all chain sto
Slide 41: Capital Policy
Capital Policy We will aim to improve return on capital through growth investments. ● Analysis of current situation (trends in ROE and cost of shareholder capital) ●Cash Allocation ・ROE is higher than cost of shareholder capital (market expectations). FY2026-FY2030 FY2026-FY2030 ROE Cash In Cash Out
Slide 42: ■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