Workman Co., Ltd. · TSE:7564
Workman — Q1 FY3/2024 Earnings Presentation
26 slides from Workman's earnings presentation, Aug 9, 2023
Slide 1: Materials for Briefing Session on Financial Results for Q1 FY Ending March 2024
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024 August 9, 2023
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the First Quarter of the Fiscal Year 3 Ending March 31, 2024 ●Overview of Financial Results for the First Quarter of 7 the Fiscal Year Ending March 31, 2024 ●Plans for the Fiscal Year Ending March 31, 2024 17 ©2023 WORKMAN CO., LTD. All Rights Reserved 2
Slide 3: Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024
Briefing Contents ●Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024 ©2023 WORKMAN CO., LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement FY 3/23 FY 3/24 YoY （Millions of yen） Q1 Q1 （％） ➢ Financial Results Highlights Sales at all chain stores 46,096 47,911 +3.9 ●Sales at all chain stores ・While sales were robust at new and renovated stores, existing stores Sales to directly struggled due to the high bar tha
Slide 5: Cumulative Selling, General and Administrative Expenses (SG&A)
Cumulative Selling, General and Administrative Expenses (SG&A) SG&A SG&A FY 3/23 FY 3/24 (Millions of yen) ratio ratio Change YoY (％) Q1 Q1 （％） （％） ➢ Factors of increase/decrease Sales at all chain stores 46,096 － 47,911 － － +3.9 ●Labor cost Regular salary increase: +5.1％. Average number of employee
Slide 6: Balance Sheet
Balance Sheet FY 3/23 FY 3/24 FY3/23 （Millions of yen) End of Q1 End of Q1 Change Current assets 93,625 101,390 100,945 △445 ➢ Factors of increase/decrease Cash and deposits 65,408 62,640 64,598 +1,957 ●Cash and deposits ・Free cash flow: up 7,444 million yen Accounts receivable ・Payments of dividend
Slide 7: Overview of Financial Results for the First Quarter
Briefing Contents ●Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024 ©2023 WORKMAN CO., LTD. All Rights Reserved 7
Slide 8: Store Openings
Store Openings ●New store openings were accelerated in shopping centers and strip malls that are expected to attract many customers. 995 stores at the end of June 2023 (up 14 stores over end-March 2023) Number of New store openings Renovation/conversion※2 Excluding Number of stores at Partial increa
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 30 Q1 overview While demand for fashion has risen with 24.5 the increase in outings, weakness is evident in
Slide 10: Status of Sales (FY 3/24 Q1)
Status of Sales (FY 3/24 Q1) ● Sales at All Chain Stores 47,911 Million Yen ●Sales at existing stores All chain stores Existing stores by prefecture Net sales +3.9％ △1.4％ Nationwide, growth is slowing due to the increase in the sales base. Number of customers +0.5％ △4.5％ Moreover, sales in areas wit
Slide 11: Status of Sales (Results by Product)
Status of Sales (Results by Product) ●Athleisure market products drove growth in sales, supported by a broad range of customers. ●Factors for Increase/Decrease in FY 3/24 Q1 ●FY 3/24 Q1 Sales by Product Sales at All Chain Stores （100 millions of yen） Athleisure Work Common (Hundreds of millions of y
Slide 12: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) New stores contributed to growth with high sales numbers. S&B and renovation (first year) also continued to help expand the customer base. （％） 6.1% 0.9% Sales Composition Ratio (based on all chain stor
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 3/23 Q1 FY 3/24 Q1 Category Factors（YoY） Sales YoY Sales YoY ・Summer short Socks (+6.8％) Undergarments・Socks Undergarments, socks, hats, towels, etc. 4,317 +18.5 4,582 +6.1 ・Rain Hat (+101.8％) ・
Slide 14: Status of Sales (Sales by Product and Factors): PB Products
Status of Sales (Sales by Product and Factors) ●Sales of PB Products 32,616 Million Yen (Up 8.6％ 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% 68.1% Work & Outdoor 510（433）
Slide 15: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 94.9％ (Down 0.8 points YoY) ●Format of Store Operations for FY 3/24 Q1 ●Number of Stores by Format of Operations SC Training stores End- End- Outsourcing stores (Contract B) Franchise stores (Contract A) Format March Up Down June. Number （％） FC r
Slide 16: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●Inventory has increased significantly due to rising unit prices of individual items and insufficient progress with the consumption of summer products. ●Selling price inventories per store ●DC inventories / delivery cost ratio ・The peak sales of summer products being car
Slide 17: Plans for the Fiscal Year Ending March 2024
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2024 ©2023 WORKMAN CO., LTD. All Rights Reserved 17
Slide 18: Plans for FY Ending March 31, 2024
Plans for FY Ending March 31, 2024 ●Management policy ●Accelerate the opening of new SC stores that attract many customers, expand Store the network of stores for general customers opening ●Improve convenience by right-sizing S&B stores according to sales capacity Achieve sustainable growth by creat
Slide 19: Recognized Situation and Measures Related to Existing Stores
Recognized Situation and Measures Related to Existing Stores ●While new and renovated stores are steadily attracting customers, improving the rate of returning customers is a challenge. ●Average annual sales of existing stores ※1 ●Sales in first year after opening (for those new stores as of end-Jun
Slide 20: Store Opening Plans
Store Opening Plans ●Aim for 1,500 domestic stores by accelerating the opening of SC stores and expanding the network of stores for general customers Number of Openings set for FY 3/24 Renovation set for FY 3/24※2 Excluding Number of Medium/ stores at increase/ stores at (Number of stores) S＆B※2 Clo
Slide 21: Store Opening Strategy
Store Opening Strategy ●Address general demand by reviewing store opening locations and developing new business categories. ●WORKMAN Colors ●#WORKMAN Girl (Colors specific) ・Testing out of new mannequins and display methods in preparation for the opening of the first store in September has begun, an
Slide 22: Product Development (PB Products)
Product Development (PB Products) ●Develop products that will be supported by general and professional customers. General PRO Evolve into a business where people Rebuild the work lineup can ask for what they want. Respond to customers’ requests in areas where we can leverage our advantages to expand
Slide 23: Status of Product Procurement
Status of Product Procurement ●Plan to keep prices of focus PB products unchanged We aim to improve profitability through the development of new products with higher added value and changing/eliminating existing products ●Issues in product procurement ●Status as of FY 3/2024 Q1 ●Outlook for FY 3/202
Slide 24: Sales Strategy
Sales Strategy ●New product presentation at AW 2023: Strengthen dissemination of information going into the fall and winter seasons ●Overview ■Date August 30, 2023 (for media and influencers) ■Venue Shinjuku Sumitomo Building Sankaku Plaza ■Topics ・Various genres of fall and winter products will be
Slide 25: Plans for the Fiscal Year Ending March 2024
Plans for the Fiscal Year Ending March 2024 ●Although the Q1 plan was not achieved, there is no change in the earnings forecast, and we continue to expect both revenue and profit to increase. （％） Sales at all chain stores 180,980 Million yen YoY +6.5％ Sales at all chain stores Rate of progression 26
Slide 26: ■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