Slide 1: Materials for Briefing Session on Financial Results for Q1 FY Ending March 2023
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023 August 8, 2022
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023 3 ●Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023 7 ●Plans for the Fiscal Year Ending March 31, 2023 17 ©2022 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, 2023 ©2022 WORKMAN CO.,LTD. All Rights Reserved 3
Slide 4: Cumulative income statement
Cumulative income statement FY3/22 FY3/23 YoY （Millions of yen） Q1 Q1 （％） ➢ Financial Results Highlights ●Sales at all chain stores Sales at all chain stores 39,851 46,096 +15.7 ・Blessed with the easing of COVID-19 restrictions and fair weather, sales surpassed the initial plan by 8.2 points. Sales
Slide 5: Cumulative Selling, General and Administrative Expenses (SG&A)
Cumulative Selling, General and Administrative Expenses (SG&A) SG&A SG&A FY3/22 FY3/23 (Millions of yen) ratio ratio Change YoY (％) ➢ Factors of increase/decrease Q1 （％） Q1 （％） Sales at all ●Labor cost chain stores 39,851 － 46,096 － － +15.7 The average number of employees during the quarter +13 ●Fre
Slide 6: Balance Sheet
Balance Sheet FY3/22 FY3/23 FY3/22 （Millions of yen) End of Q1 End of Q1 Change Current assets 81,619 94,266 93,625 △641 ➢ Factors of increase/decrease Cash and deposits 55,629 64,283 65,408 +1,125 ●Cash and deposits Operating C/F 7,672 million yen Accounts receivable Investing C/F △ 1,070 million y
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, 2023 ©2022 WORKMAN CO.,LTD. All Rights Reserved 7
Slide 8: Store Openings: 956 stores at the end of June 2022
Store Openings ●New openings of #WORKMAN Girl increased in urban areas and open malls “WORKMAN Shoes” opened as an annex 956 stores at the end of June 2022 (up 12 stores over end-March 2022) Number of New store openings Renovation/conversion※2 Number of stores at Partial stores at (Number of stores)
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 40 37.2 Q1 overview 34.5 As COVID-19-related restrictions were eased, the 33.2 movement of people began to r
Slide 10: Status of Sales (FY3/23 Q1)
Status of Sales (FY3/23 Q1) ● Sales at All Chain Stores 46,096 Million Yen ●Sales at existing stores All chain stores Existing stores by prefecture Net sales +15.7％ +9.0％ Sales grew across Japan due to eased restrictions related to COVID-19 and higher temperatures. Number of customers +12.9％ +6.7％ S
Slide 11: Status of Sales (Results by Product)
Status of Sales (Results by Product) ●Products for the athleisure market drove growth ●Factors for Increase/Decrease in FY3/23 Q1 ●FY3/23 Q1 Sales by Product Sales at All Chain Stores （100 millions of yen） Athleisure Work Common (Hundreds of millions of yen) 170.26 197.69 Sales at all +39.7％ +3.1％ +
Slide 12: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) Existing stores became more reinvigorated thanks to S&B and renovation/conversion. （％） WORKMAN New Format 52.6% Sales Composition Ratio (based on all chain stores) 47.4% YoY (％) +6.2 － +11.8 +29.0 +31.
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） FY3/22 Q1 FY3/23 Q1 Category Sales YoY Sales YoY Factors（YoY） ・Short socks (+16.6％) Undergarments・Socks Undergarments, socks, hats, towels, etc. 3,643 +8.2 4,317 +18.5 ・Summer supplies (+17.6％) ・Ou
Slide 14: Sales of PB Products 30,035 Million Yen
Status of Sales (Sales by Product and Factors) ●Sales of PB Products 30,035 Million Yen (Up 24.7％ 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 433 (304) 12,059
Slide 15: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 95.8％ (up 0.1 points YoY) ●Format of Store Operations for FY3/23 Q1 ●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 FC ratio
Slide 16: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●More thorough and efficient inventory management helped improve inventory turnover days and the delivery cost ratio. ●Selling price inventories per store ●DC inventories / delivery cost ratio ・Seasonal products fared well thanks to the impact of a hot spell in late ・Tha
Slide 17: Plans for the Fiscal Year Ending March 2023
Briefing Contents ●Plans for the Fiscal Year Ending March 31, 2023 ©2022 WORKMAN CO.,LTD. All Rights Reserved 17
Slide 18: Sustainable Growth Stories
Plans for FY Ending March 31, 2023 ●Management policy Store ●Open a wide array of stores in terms of locations, categories and sizes, and develop them in opening accordance with customer needs to enhance convenience. Sustainable ●Develop new functions and categories, including work refortifying, amb
Slide 19: Store Opening Plans: Go for 1,500 domestic stores
Store Opening Plans ●Go for 1,500 domestic stores Number Openings set for FY3/23 Renovation set for FY3/23※2 Number of Medium/ of stores stores at (Number of stores) S＆B※3 Closures longer-term at end of Full Partial end of Roadside SC※3 goals FY3/22 renovation renovation FY3/23 559 － － － (△11) (△66)
Slide 20: Store Opening Strategy
Store Opening Strategy ●Take in latent demand through new business categories and store openings in unexplored areas ●Store openings in urban areas ●WORKMAN Shoes Maintain strong sales even after a store opening sale Open 2 stores as an annex to #WORKMAN Girl ・Declining rent prices amid the COVID-19
Slide 21: Impacts of Sharp Rises in Purchase Prices
Impacts of Sharp Rises in Purchase Prices ●”Prices to Be Kept Unchanged” for PB products for autumn/winter 2022 Improvement/elimination of products for spring/summer 2023, price review under consideration ●Issues in product procurement ●Responses to issues and outlook ●Status as of Q1 Things went as
Slide 22: Product Development
Product Development ●Development of functionality-driven sustainable products ●Camp gear…Develop products while listening to ●Develop “high functionality x low prices x sustainable” products “the voices of customers” ・Value-added enhancement with the renewal of existing products FY3/2023 Q1 sales 2,
Slide 23: Sales Strategy
Sales Strategy ●Seek to raise the productivity of FC stores by improving operating issues and enhancing the ability to send customers to stores ●Operations under the 4-season system ●Demand Forecast and Ordering System ・Sales floor proposals ・Introduced at 624 stores conscious of a particular season
Slide 24: Plans for the Fiscal Year Ending March 2023
Plans for the Fiscal Year Ending March 2023 ●No change in the earnings forecast, and we will maintain the forecast of lower income on higher sales （％） Sales at all chain stores 166,690 Million yen YoY +6.4％ Sales at all chain stores Rate of progression 25.5％ Total operating revenue 124,110 Rate of p
Slide 25: ■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