Slide 1: Materials for Briefing Session on the Financial Results for FY Ending March 31, 2024
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Fiscal Year Ending March 31, 2024 May 7, 2024
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Fiscal Year Ending March 31, 2024 3 ●Overview of Financial Results for the Fiscal Year Ending March 31, 2024 8 ●Plans for the Fiscal Year Ending March 31, 2025 18 ©2024 WORKMAN CO., LTD. All Rights Reserved 2
Slide 3: Financial Results for the Fiscal Year Ending March 31, 2024
Briefing Contents ●Financial Results for the Fiscal Year Ending March 31, 2024 ©2024 WORKMAN CO., LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement （Millions of yen） FY 3/23 FY 3/24 YoY Forecast for Compared （％） FY3/24 with Plan ➢ Financial Results Highlights Sales at all chain stores 169,856 175,250 +3.2 175,888 △0.4 ●Sales at all chain stores ・Main factors for not achieving plan targets (△0.4 points below plan): Sa
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 3/23 ratio FY 3/24 ratio Change YoY (％) （％） （％） ➢ Factors of increase/decrease Sales at all chain stores 169,856 － 175,250 － － +3.2 ●Labor cost Regular salary increase: +5.1％. Average number of employees du
Slide 6: Balance Sheet
Balance Sheet FY 3/23 FY 3/24 （Millions of yen) Change Current assets 101,390 112,648 +11,257 ➢ Factors of increase/decrease Cash and deposits 62,640 68,187 +5,547 ●Cash and deposits Accounts receivable ・Free cash flow: up 6,228 million yen - due from FCs 13,459 14,407 +948 ・Payments of dividends: d
Slide 7: Statement of cash flows
Statement of cash flows （Millions of yen） FY 3/23 FY 3/24 Change ➢ Principal factors of increase/decrease Net cash provided by (change from the previous year) (used in) operating 8,813 15,228 ＋6,414 activities ●Operating C/F Net cash provided by ・Change in inventory assets: Up 3,311 million yen ・Cor
Slide 8: Overview of Financial Results for the Fiscal Year Ending March 31, 2024
Briefing Contents ●Overview of Financial Results for the Fiscal Year Ending March 31, 2024 ©2024 WORKMAN CO., LTD. All Rights Reserved 8
Slide 9: Store Openings: 1,011 stores at the end of March 2024
Store Openings ● Opening of stores accelerated in urban SCs and open malls, where general demand is expected 1,011 stores at the end of March 2024 (up 30 stores over end-March 2024) Number of New store openings Renovation/conversion※2 Excluding Number of stores at Partial increase/ Closures stores a
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 Q1 overview Q2 overview Q3 overview Q4 overview Demand for fashion rose as a result of Although summer produ
Slide 11: Status of Sales: 175,250 Million Yen
Status of Sales ● Sales at All Chain Stores 175,250 Million Yen All chain stores Existing stores ●Sales at existing stores by prefecture Net sales +3.2％ △1.4％ Number of customers +0.3％ △4.0％ Sales of winter products Average number of customers were weak due to the warm － ※167 (△5) per day winter, wi
Slide 12: Status of Sales (Results by Product)
Status of Sales (Results by Product) ● Sales of common products such as socks and T-shirts have remained steady ●Factors for Increase/Decrease in FY 3/24 Sales at All Chain Stores ●FY 3/24 Sales by Product Athleisure Work Common （100 millions of yen） (Hundreds of millions of yen) YoY YoY 571.83 +1.1
Slide 13: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) While new stores are driving sales, sales at existing stores that had special demand from openings and renovations last year are sluggish. （％） 6.2% 1.1% Sales Composition Ratio (based on all chain stor
Slide 14: Status of Sales (Sales by Product and Factors)
Status of Sales (Sales by Product and Factors) ● Although products for women are selling well, sales of winter products such as thermal outerwear have been weak overall. （Millions of yen） FY 3/23 FY 3/24 Category Factors（YoY） Sales YoY Sales YoY ・Support straps (+38.2％) Undergarments・Socks Undergarm
Slide 15: Sales of PB Products 118,577 Million Yen
Status of Sales (Sales by Product and Factors) ● Sales of PB Products 118,577 Million Yen (Up 6.1％ 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% 65.9% 67.8% Work & Outdoor 1
Slide 16: Format of Store Operations: Ratio of Franchise Stores 94.2%
Format of Store Operations ● Ratio of Franchise Stores 94.2％ (Down 1.5 points YoY) ●Format of Store Operations for FY 3/24 ●Number of Stores by Format of Operations SC Training stores End- End- Outsourcing stores (Contract B) Franchise stores (Contract A) Format March Up Down March. Number FC ratio
Slide 17: Inventories (Logistics Cost)
Inventories (Logistics Cost) ● Significant increase in winter inventories carried over due to the warm winter ●Selling price inventories per store ●DC inventories / delivery cost ratio ・While consumption of winter products made headway thanks to ・In view of the large increase in winter products, pro
Slide 18: Plans for the Fiscal Year Ending March 2025
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2025 ©2024 WORKMAN CO., LTD. All Rights Reserved 18
Slide 19: 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 Ope
Slide 20: Store Opening Plans
Store Opening Plans ● Accelerate opening of #WORKMAN GIRL stores and shift to business categories that meet local needs 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 decraease Roadsi
Slide 21: Product Development
Product Development ● Develop PB products chosen for their price and functionality ●Develop products targeting the ● Develop exclusive # WORKMAN GIRL products ●Enhance professional merchandise mass market ・Develop products that will continue to support a ・Develop products targeting general consumers
Slide 22: Pricing Policy for the Fiscal Year Ending March 2025
Pricing Policy for the Fiscal Year Ending March 2025 ● In light of the prolonged depreciation of the yen, secure profitability by reviewing unit prices of some products. ●Trends in the exchange rate and gross ●Trends in average customer spending ●Pricing policy for FY 3/2025 profit margin Unit price
Slide 23: Sales Strategy
Sales Strategy ● Identify the strengths of each business category, and establish a system in which the various business categories can coexist and thrive. Point The key points for the sustainable growth of all chain stores are ”differentiation” and “strengthening products for professionals” ■Expand
Slide 24: Sustainability
Sustainability ● We are pursuing efforts to address climate change, which also impacts business performance Materiality Policy Initiative Results Sustainable product We respect the labor environment and basic development ●Sustainable products: 185 items; 17,312 million yen 01. human rights, and supp
Slide 25: Plans for the Fiscal Year Ending March 2025
Plans for the Fiscal Year Ending March 2025 ● We plan to increase both revenue and profit by aggressively opening stores and revising the pricing policies FY3/2025 （Millions of yen） FY3/2024 YoY FY3/2025 QoQ Full-year YoY ➢ Topics Results (％) Q2 Plan （％） （％） Plan ●Sales at all chain stores ・Sales at
Slide 26: 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 27: ■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