Workman Co., Ltd. · TSE:7564
Workman — Q1 FY3/2022 Earnings Presentation
24 slides from Workman's earnings presentation, Aug 11, 2021
Slide 1: Materials for Briefing Session on Q1 Financial Results FY Ending March 2022
JASDAQ（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 August 11, 2021
Slide 2: Briefing Contents
Briefing Contents ● Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 3 ● Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022 7 ● Plans for the Fiscal Year Ending March 31, 2022 17 ©2021 WORKMAN CO.,LTD. All Rights Reserved 2
Slide 3: Financial Results for the First Quarter
Briefing Contents ●Financial Results for the First 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 ➢ Financial Results Highlight FY3/21 FY3/22 （Millions of yen） Q1 Ｑ1 YoY ● Sales at all chain stores achieved 100.0% of the plan for Q1. The rate of increase became moderate, but the growth was Sales at all chain stores 36,443 39,851 +9.4 sustained under the impact of spec
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 Q1 FY3/22 Q1 ➢ Effect of the Change （Millions of yen） Pre- Post- Effect ●Total operative revenue change change Sales at directly managed stores (sales at all chain stores)…Down 2 million yen Points granted at S
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 Q1 FY3/22 Q1 YoY (％) FY3/22/ Q1 Effect (Millions of yen) Pre-change (a) Pre-change (b) b／a Post-change (c) ｃ－b Labor cost 807 878 +8.7 878 － Selling cost 301 190 △36.8 290 +100 Traveling 55 65 +17.9 65 － expen
Slide 7: Balance Sheet
Balance Sheet FY3/21 FY3/22 FY3/21 （Millions of yen) End of Q1 End of Q1 Change ➢ Factors of increase/decrease Current assets 72,132 85,696 81,619 △4,076 ●Cash and deposits Cash and deposits 43,471 57,813 55,629 △2,183 Operating C/F Accounts receivable Investing C/F 13,521 11,884 12,656 772 Financia
Slide 8: 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, 2022 ©2021 WORKMAN CO.,LTD. All Rights Reserved 8
Slide 9: Store Openings
Store Openings ●＃The first roadside store of WORKMAN GIRL opened (Minami Kashiwa Store in Chiba Prefecture) 916 stores as of the end of June 2021 (Up 10 YoY) Number of New store openings Renovation/conversion※2 Number of stores at stores at Closure end-March Full Partial end-June (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 Q1 overview 60 54.7 Consumption became higher Media exposure grew following The spring and summer selling Average customer spending fo
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 ●FY3/22 Q1 Sales by Product Q1 Sales at All Chain Stores （100 millions of yen） Athleisure Professional Common (Hundreds of millions of yen) +4.3％
Slide 12: Status of Sales (FY3/22 Q1)
Status of Sales (FY3/22 Q1) ● Sales at All Chain Stores 39,851 Million Yen ●Sales at existing stores All chain stores Existing stores by prefecture The growth trend of the Net sales +9.4％ +2.2％ preceding quarter was maintained until May. Following the sharp fall in Number of customers +8.1％ +1.3％ re
Slide 13: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) （％） WORKMAN WORKMAN Plus 35.6% Sales Composition Ratio (based on all chain stores) 64.4% YoY(%) － － +0.4 +3.4 +23.8 +12.1 △0.1 +11.5 +3.6 70.8 +9.4 Number of stores 41 8 592 37 14 12 30 78 95 9 916 ※Sa
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 Q1 FY3/22 Q1 Category Factors（YoY） Sales YoY Sales YoY ・Tropical accessories（+78.6％） Undergarments・Socks 3,368 +31.0 3,643 +8.2 ・Warm shirts（+68.1％） ・Short-sleeved T-shirts（+11.2％） Casualwe
Slide 15: Status of Sales (PB Products)
Status of Sales (PB Products) ●Sales of PB Products 24,080 Million yen (up 17.9％ YoY) ●Work ＆ Outdoor・Sports Number of items ●Changes in the PB ratio （Millions of yen） Sales value (YoY） （previous year)） (％) Work & Outdoor 304（273） 8,228（+23.8） 70 60.5 Work & Sports 230（282） 4,135（ +7.5） 60 56.2 High
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 FY Ended June 30, 2021 ●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 June
Slide 17: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●Cost control was a challenging task amid the smooth progress in inventory control ●Selling price inventories per store ●DC inventories / delivery cost ratio Improvement in inventory details. Inventories were curved through the strengthening of the production Autumn/wint
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 Logistics policy Establishment of new business categories, new formats Store ・Isesaki Distribution Center expansion ・Accelerate opening of #WORKMAN GIRL roadside stores opening (September 2021) ・Open stores in commercial districts, areas in front of train stations
Slide 20: Store Opening Plans
Store Opening Plans ● Go for 1,500 domestic stores in 3 categories Openings set for FY3/22 Renovation set for FY3/22 ※2 Stores at Stores at Medium/ end of Closure end of longer-term (Number of stores) FY3/21 Roadside SC※3 S＆B※3 Full Partial FY3/22 goals renovation renovation 632 (△13) － － (△13) (△62
Slide 21: Deployment of #WORKMAN GIRL Roadside Stores
Deployment of ＃WORKMAN GIRL Roadside Stores ●We will continue experiments and verification, hoping to put roadside stores for general consumers on track. ●Actual sales（＃WORKMAN GIRL Roadside Minami Kashiwa Store) Future Challenges 29.4 20.1% % 01. 47.7% By 52.3% By age Data-based changes in the asso
Slide 22: Product Development
Product Development ●Revitalization of products for professionals only WORKMAN can make (application of outdoor/sports functions) ● An example of shoes Step.02 BounceTECH Popular high-repulsion sole is used Cycle of for safety shoes for work. Functionality High Bounce Safety 2,900 yen Realization of
Slide 23: 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 year） （％） Sales at all chain stores 156,174 Millions yen YoY+6.5％ Sales at all chain stores Rate of progression 25.5％ Total operating revenue 11
Slide 24: 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 acc