Slide 1: Materials for Briefing Session on Q2 Financial Results FY ending March 2022
JASDAQ（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022 November 9, 2021
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Second Quarter of the Fiscal Year Ending 3 March 31, 2022 ●Overview of Financial Results for the Second Quarter of the Fiscal 8 Year Ending March 31, 2022 ●Plans for the Fiscal Year Ending March 31, 2022 18 ©2021 WORKMAN CO.,LTD. All Rights Reserved 2
Slide 3: Financial Results for the Second Quarter
Briefing Contents ●Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022 ©2021 WORKMAN CO.,LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement （Millions of yen） FY3/21 FY3/22 FY3/22 Vs. ➢ Financial Results Highlight YoY Q2 Ｑ2 Q2 Plans Plans Sales at all chain ●Sales at all chain stores at 98.6% of the plan for stores 68,288 73,756 +8.0 74,792 △1.4 Q2 ・Sales went ahead as planned generally throughout Q2, but fell
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 Q2 FY3/22 Q2 （Millions of yen) Effect Pre-change Post-change ➢ Effect of the Change ●Profit Sales at all chain stores 73,761 73,756 △4 ① Effect of the change to recording royalties by allocation to appropriate
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 Q2 FY3/21 Q2 YoY (％) FY3/21 Q2 Effect (Millions of yen) Pre-change (a) Pre-change (b) b／a Post-change (c) ｃ－b Labor cost 1,618 1,753 +8.3 1,753 － Selling cost 557 412 △25.9 480 +67 Traveling 117 137 +17.2 137
Slide 7: Balance Sheet
Balance Sheet ➢ Factors of increase/decrease FY3/21 FY3/22 FY3/21 （Millions of yen) End of Q2 End of Q2 Change ●Cash and deposits Operating C/F - 6,373 million yen Current assets 75,283 85,696 86,411 715 Investing C/F - Down 2,286 million yen Cash and deposits 43,562 57,813 56,617 △1,195 Financial C
Slide 8: Overview of Financial Results for the Second Quarter
Briefing Contents ●Overview of Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022 ©2021 WORKMAN CO.,LTD. All Rights Reserved 8
Slide 9: Store Openings
Store Openings ●New openings and renovation went ahead as initially planned 924 stores at the end of September 2021 (up 18 stores over end-March 2021) Number New store openings Renovation/conversion※2 Number of of stores stores at (Number of stores) at end- Partial Closures Roadside SC※3 S＆B※3 Full
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 60 Media exposure grew following Average customer spending Q1 overview the holding of “Grueling Fashion The spring and summer selling
Slide 11: Status of Sales (Results by Product)
Status of Sales (Results by Product) ●PB brands for the athleisure market drove growth (customer base expanded). ●Factors for Increase/Decrease in FY3/22 Q2 Sales at All Chain Stores ●FY3/22 Q2 Sales by Product （100 millions of yen） Athleisure Professional Common (Hundreds of millions of yen) 250.48
Slide 12: Status of Sales (FY3/22 Q2)
Status of Sales (FY3/22 Q2) ● Sales at All Chain Stores 73,756 Million Yen ●Sales at existing stores All chain stores Existing stores by prefecture Net sales +8.0％ +1.7％ The rain front became stationary for a long period of time, bringing record rainfalls and low temperatures Number of customers +6.
Slide 13: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) （％） WORKMAN WORKMAN Plus 36.2% Sales Composition Ratio (based on all chain stores) 63.8% YoY(%) － － △0.1 +0.5 +26.5 +17.9 △1.7 +12.9 +3.1 +21.7 +8.0 Number of stores 40 7 588 47 17 3 39 60 113 10 924 ※
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） FY3/21 Q2 FY3/22 Q2 Category Factors（YoY） Sales YoY Sales YoY ・Short socks (+11.3％) Undergarments・Socks 6,240 +28.4 6,791 +8.8 ・Tropical accessories (+7.8％) ・Short-sleeved T-shirts (+14.1％) Casualw
Slide 15: Sales of PB Products 42,754 Million Yen
Status of Sales (Sales by Product and Factors) ●Sales of PB Products 42,754 Million Yen (Up 16.0％ 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 429（343） 14,350（+
Slide 16: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 95.3％（up 0.3 points YoY) ●Format of Store Operations for FY3/22 Q2 ●Number of Stores by Format of Operations SC Training stores End- Outsourcing stores (Contract B) Franchise stores (Contract A) FY3/22 Number （％） Format March Up Down FC ratio Q2
Slide 17: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●Early introduction of products to stores ahead of the autumn and winter selling season, and control of CD inventories and delivery costs ●Selling price inventories per store ●DC inventories / delivery cost ratio ・Rise in spring/summer products carried - 4.6 million yen
Slide 18: Plans for the Fiscal Year Ending March 2022
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2022 ©2021 WORKMAN CO.,LTD. All Rights Reserved 18
Slide 19: Plans for FY Ending March 31, 2022
Plans for FY Ending March 31, 2022 Establishment of new business categories, Logistics policy new formats Store ・Accelerate opening of #WORKMAN GIRL roadside stores opening ・Isesaki Distribution Center expansion ・Open stores in commercial districts, areas in front of train stations (vacant lots) pol
Slide 20: Store Opening Plans
Store Opening Plans ●Go for 1,500 domestic stores in 3 categories Number Openings set for FY3/22 Renovation set for FY3/22※2 Number of Medium/ of stores stores at (Number of stores) Closures longer-term at end of Full Partial end of Roadside SC※3 S＆B※3 renovation goals FY3/21 renovation FY3/22 632 (
Slide 21: AI-Driven Sales Forecast of Seasonal New Products
AI-Driven Sales Forecast of Seasonal New Products ●Improve the early stockout of new products Seek to mitigate opportunity loss through the insourcing of the system for sales forecast of new products ●Outline of the initiative New Products ① AI Basic Data ④ Sales plan development （Python） Place orde
Slide 22: Rollout of 2021 Autumn and Winter New Products
Rollout of 2021 Autumn and Winter New Products ● Grueling Fashion Show ・Under the main theme of “Water & Fire,” new products sought to appeal their functionality through more grueling staging than in previous years ・Exhibition of tents and other outdoor gear (the gear is set to launch in February 20
Slide 23: Roadside stores for general consumers
●We will continue experiments and verification, hoping to put roadside stores for general consumers on track The second roadside store and the Morioka Minami store (150-tsubo type) were opened. Future Challenges 01. Stability of operations ⇒Requires a long-term verification 02. Impact on neighboring
Slide 24: Demand Forecast and Ordering System
Demand Forecast and Ordering System ●Verification started at many stores ➢ Introduction New ※The schedule represents the timetable expected at the present time, and the Company may change it flexibly in accordance with the status of verification. schedule Launch of system Verification at pilot Verif
Slide 25: Investment in Logistics
Investment in Logistics ●Rebuilding of logistics infrastructure – Expansion of Isesaki Distribution Center (Gunma Prefecture) Expanded ●Details of the acquisition building Aggregate investment 3,317 million yen Existing Depreciation (annual amount) 153 million yen building SG&A（Q3 2022） 110 million
Slide 26: The New Market Structure on the Tokyo Stock Exchange
The New Market Structure on the Tokyo Stock Exchange Following the reception of the outcome of the primary determination on the conformity to the criteria for maintaining the listing, the Company chose the ”Standard Market.” ●Outline of the listing criteria for the Standard Market Number of Ratio of
Slide 27: Plans for the Fiscal Year Ending March 2022
Plans for the Fiscal Year Ending March 2022 ●Aiming for record-high net income for the 11th straight year（No change from the plan at the beginning of the current fiscal year） FY3/22 Plans （％） Sales at all chain stores Progression rate 156,174 Sales at all chain stores million yen YoY+6.5％ 47.2％ Tota
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