Slide 1: Materials for Briefing Session on Q2 Financial Results, FY Ending March 31, 2024
（7564） WORKMAN CO., LTD. Materials for Briefing Session on the Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2024 November 6, 2023
Slide 2: Briefing Contents
Briefing Contents ●Financial Results for the Second Quarter of the Fiscal 3 Year Ending March 31, 2024 ●Overview of Financial Results for the Second 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 Second Quarter
Briefing Contents ●Financial Results for the Second 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 （Millions of yen） FY3/23 FY3/24 YoY FY3/24 Vs. ➢ Financial Results Highlights Q2 Ｑ2 （％） Q2 Plans Plans ●Sales at all chain stores Sales at all chain ・While the number of customers was sluggish due to seasonal stores 81,928 86,498 +5.6 87,990 △1.7 and inflationary factors,
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 (％) Q2 Q2 （％） （％） ➢ Factors of increase/decrease Sales at all chain stores 81,928 － 86,498 － － +5.6 ●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 Q2 End of Q2 Change Current assets 95,869 101,390 105,531 +4,141 ➢ Factors of increase/decrease Cash and deposits 64,492 62,640 61,166 △1,474 ●Cash and deposits ・Free cash flow: down 861 million yen Accounts receivable ・Payments of divide
Slide 7: 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, 2024 ©2023 WORKMAN CO., LTD. All Rights Reserved 7
Slide 8: 1,000 stores achieved at the end of September
Store Openings ●The new business category “Workman Colors” was launched to expand the customer base. Milestone of 1,000 stores achieved at the end of September (+19 stores over end-Mar 2023) Number of New store openings Renovation/conversion※2 Excluding Number of stores at Partial increase/ Closures
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 Q1 overview Q2 overview 20 While demand for fashion Summer products sold well rose with the increase in due
Slide 10: Status of Sales (FY 3/24 Q2)
Status of Sales (FY 3/24 Q2) ● Sales at All Chain Stores 86,498 Million Yen ●Sales at existing stores by prefecture All chain stores Existing stores The growth rate has been moderate nationwide due to Net sales +5.6％ 0.7％ the increase in the sales base, including such impacts as special strong deman
Slide 11: Status of Sales (Results by Product)
Status of Sales (Results by Product) ●Sales results were solid for all products, with products for the athleisure market being the main driver of growth ●Factors for Increase/Decrease in FY 3/24 Q2 ●FY 3/24 Q2 Sales by Product Sales at All Chain Stores （100 millions of yen） Athleisure Work Common (H
Slide 12: Sales by Business Category
Sales by Business Category ● Contribution to sales at all chain stores (Monthly cumulative period) New stores have maintained robust sales. S&B and existing stores not undergoing renovation are experiencing sluggish growth. （％） 5.6% 1.0% Sales Composition Ratio (based on all chain stores) 50.3% 43.1
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 Q2 FY 3/24 Q2 Category Factors（YoY） Sales YoY Sales YoY ・Summer short Socks (+17.2％) Undergarments・Socks Undergarments, socks, hats, towels, etc. 7,821 +15.2 8,706 +11.3 ・Leggings (+10.2％)
Slide 14: Sales of PB Products 55,176 Million Yen (Up 8.3% YoY)
Status of Sales (Sales by Product and Factors) ●Sales of PB Products 55,176 Million Yen (Up 8.3％ 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% 63.9% Work & Outdoor 763（+154）
Slide 15: Format of Store Operations
Format of Store Operations ●Ratio of Franchise Stores 94.6％ (Down 1.1 points YoY) ●Format of Store Operations for FY 3/24 Q2 ●Number of Stores by Format of Operations SC Training stores End- End- Outsourcing stores (Contract B) Franchise stores (Contract A) Format March Up Down Sep. Number （％） FC ra
Slide 16: Inventories (Logistics Cost)
Inventories (Logistics Cost) ●Although summer products sold well due to the lingering hot weather, the inventories of year-round and autumn/winter products have increased ●Selling price inventories per store ●DC inventories / delivery cost ratio ・Although summer inventories carried were smaller than
Slide 17: Plans for the Fiscal Year Ending March 31, 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: 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 20: Store Opening Strategy
Store Opening Strategy ●Aim to grow the customer base by developing Workman Colors ●The WM Girl shop in Exitmelsa Ginza was renovated Status of Sales and re-opened on September 1 ・There has been an increase in male and younger customers coupled with a rebound in inbound tourism, increasing diversifi
Slide 21: Product Development (for Professional Customers)
Product Development (for Professional Customers) ●In addition to price appeals, build a stable customer base by exploring demand for work products ●Develop Premium Line products ●Work-supporting prices These products are in a higher price range than our other lines, but offer more functional and exp
Slide 22: Product Development (for General Customers)
Product Development (for General Customers) ●Grow the customer base by developing core products and responding to trends ●Women’s innerwear ●QR (short-term) production initiative First line of high-performance underwear: Collaboration with Fancl Corp. Uses material with a high content of “ceramide v
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 Q2 ●Outlook for FY 3/202
Slide 24: Sales Strategy
Sales Strategy ●Aim to achieve stable growth by increasing resilience in products for professionals ●Overhaul sales floors for professional products ●Acquire expertise in products for professional customers (Main Initiatives) Standardize sales floors for professional products (tools, gloves, etc.) １
Slide 25: Plans for the Fiscal Year Ending March 2024
Plans for the Fiscal Year Ending March 2024 ●No revision to the full-year earnings forecast; a decision will be made based on Q3 trends. （％） Sales at all chain stores 180,980 Million yen YoY +6.5％ Sales at all chain stores Rate of progression 47.8％ Total operating revenue 136,576 Rate of progression
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