Financial Results for the Fiscal Year Ended February 28, 2025

World Co.,ltd.TSE: 3612

(12-month period)

(11-month period)

Apr 2, 2025 at 10:00 PM UTC · Issued by World Co.,ltd.

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Sharing of Values Always Strive to

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C o p y r i g h t © 2 0 2 5 W O R L D C O . , L T D . A l l R i g h t s R e s e r v e d .

World Co., Ltd.

Financial Results for the Fiscal Year Ending February 28, 2025

April 2025

Ⅰ

World Co., Ltd.

Financial Results for the Fiscal Year

Ended February 29, 2025

C o p y r i g h t © 2 0 2 5 W O R L D C O . , L T D . A l l R i g h t s R e s e r v e d .

Financial Results

Review

Notes regarding the change in fiscal year-end

The fiscal year ended February 29, 2024 (FY02/24) was an 11-month accounting period due to the change in the Company's fiscal year-end. This makes it difficult to compare the period's financial results with those of the fiscal year ended February 28, 2025 (FY02/25).

To allow for year-on-year comparisons in reviewing our performance for FY02/25, we have provided 12-month figures for reference, prepared by simply adding the actual performance for the month of March 2024 to the actual financial results for FY02/24.

Note that the actual figures for March 2023 are not suitable for comparison as year-end accounting adjustments, including the recording of valuation losses on merchandise, do not allow for valid comparisons. During the 12-month period from March 2023 to February 2024, the Company recorded year-end valuation losses twice, in March 2023 and February 2024.

Please refer to this document, taking note of the aforementioned points regarding the change in our fiscal year-end.

Financial Statements:

Statement of Profit or Loss

We achieved the budgeted core operating profit thanks to expenses control, though we did not achieve the budgeted revenue or gross profit margin. The core operating profit of 17 billion yen was the highest annual profit after the relisting. Other than the operating profit, the gain from negative goodwill due to the acquisition of MC Fashion Co., Ltd. contributed to the final profit.

MD issues with a part of the apparel brands remained unsolved relating to measures against the lingering summer heat in late summer and we also had some difficulty with the autumn - winter seasons, not properly adapting to the s low seasonal transition. We recovered our profits due to continuous good performance in the Digital business and the Platform business, though we had some difficulty in securing appropriate gross profit in the Brand business.

① 4

(Millions of yen)

Revenue

Gross profit

SG&A expenses

Core operating profit (loss)

FY02/24 actual

% of total

225,658 100.0%

133,288 59.1%

116,275 51.5%

17,013 7.5%

FY02/24 forecast					FY03/24 for reference*（注）
						考
				Actual - forecast			(FY03/24: 12-month
						period)期･12ヵ月)	対前期比
												vs FY03/24
		% of total		Change	% change					% of total	増Change減差 %増change減率
								百分比

230,000	100.0%		-4,342	98%			223,261	100.0%	2,397	101%
							②
138,000	60.0%		-4,712	97%		131,356	58.8%	1,931	101%



121,000	52.6%		-4,725	96%	114,913	51.5%	1,362	101%

17,000	7.4%		13	100%	16,443	7.4%	569	103%

Other income and

Operating profit (loss)

Finance income and costs, net

Profit (loss) before tax

Income taxes (a)

Profit (loss) attributable to owners of parent

△216 －

16,796 7.4%

△1,290 －

15,506 6.9%

△4,401 －

11,105 4.9%

△1,500 － 1,284 －

15,500 6.7% 1,296 108%

△950 － -340 －

14,550	6.3%	956	107%

△6,050 － 1,649 －

8,500 3.7% 2,605 131%

△1,384 － 1,168 －

15,059 6.7% 1,737 112%

△906 － -384 －

14,153 6.3% 1,353 110%

△5,934 － 1,533 －

8,219 3.7% 2,886 135%

(a) Includes income tax expense and non-controlling interests.

Figures for FY03/23 have been adjusted to reflect the finalization of provisional accounting treatments for business combinations. •Note: It is calculated by adding the actual performance for the month of March 2024 to the actual financial results for FY02/24.

Financial Statements:

Addendum to the Statement of Profit or Loss (KPI Review)

The rolling averages (LHS graphs) are reference figures converted to 12-month figures by adding the actual performance for the month of March 2024 to the actual results of 4Q of FY02/24. It is urgently necessary to revitalize apparel brands in the Brand business. For the Digital business, the profit slightly decreased due to the exclusion of Laxus Technologies, Inc. from consolidation resulting from its IPO. The profits in the Platform business stably increased.

Trends in segment profit by business (1H, 2H)		KPIs of the Brand business (1H, 2H)

Core operating profit (annual rolling average; billions of yen)

						115			-						110	116	127	111
Brand
91	93							88	100

	73

										31
business
							△78	△108			Began growth initiatives toward business
																	The apparel brands
										△28					business was slow in 2H.

												format development and net store increase
																			27

									B2C (circular business) drove growth			26
									20
Digital	7	9									9		13




						3
business
												△2
						△4								Affected by exclusion from

															consolidation due to the IPO
								△10
											△13				of Laxus Technologies Inc.


									△19	△21

								40	42		B2B external sales in process of developing

Platform				Backed by special demands			and establishing business structure

			during the COVID-19 pandemic

				(medical gowns, etc.)

	20		21			18									18
business					17
																	15
					13
								12					12

													4	1		8



			2 Q 4 Q 2 Q 4 Q 2 Q 4 Q 2 Q 4 Q 2 Q 4 Q 2 Q 4 Q 2 Q 4 Q

	2 0 1 9 / 3	2 0 2 0 / 3	2 0 2 1 / 3	2 0 2 2 / 3	2 0 2 3 / 3		2 0 2 4 / 3	2 5 / 2
Notes: 1. Corporate profit and consolidation adjustments are not included.			Reference*
	2. Past figures have not been retroactively adjusted to reflect segment changes.
*Figures derived by adding the March 2024 estimates from PLAN-W to FY02/24 results

									Full通期Year
							上半1 期	下半1 期

No.		No. of stores at beginning of year		2,184	2,181	2,184

	No. of stores opened	60	76	136
of
sores in			No. of stores closed		-71	-43	-114
		Net increase/decrease	Changed to net		-11	33	22
Japan*				increase
		Net increase/decrease due to acquisitions			8	48	56

		No. of stores at end of year		2,181	2,262	2,262

Same-store growth	Department stores	Slow sales with		98.2%	97.2%	97.4%

Shopping centers	apparel brands		100.4%	95.2%	97.8%

Sundries stores			103.7%	104.7%	104.0%
sales	Total			101.4%	98.6%	99.9%
	Gross margin (FY03/23)			59.1%	57.9%	58.5%
	Change in gross profit mix due to newly	＊１	-0.2pp	0.2pp	0.0pp
	acquired companies

Gross	Impact of discounts on sales	＊2	0.2pp	0.9pp	0.4pp
Impact of valuation/wear losses	＊3	-0.8pp	0.6pp	-0.1pp

margin	Change in gross profit mix due to increase		0.0pp	-0.1pp	0.0pp
in sales to other companies

	Change in gross profit mix due to altered	＊4	1.2pp	-0.4pp	0.4pp
	composition of sales channels

	Consolidation effects for Narumiya	＊5	-0.1pp	-0.3pp	-0.2pp
	YoY change	Affected by irregular		0.3pp	0.9pp	0.6pp
		settlement of accounts
	Gross margin (FY02/24)	(irregular in the previous 2H)		59.4%	58.8%	59.1%

Inventory turnover	Inventory turnover (FY03/23)	1.50X	1.48X	3.21X
	YoY difference	0.24X	0.31X	0.21X

	Inventory turnover (FY02/24)	1.74X	1.80X	3.43X

*Not including the number of franchise stores (103 stores as of the end of February 2025).
	でおりません。
*2 Comparisons of both the gross profit margin and the inventory turnover are made for an 11-month period for the previous FY and for a 12-month
period for the current FY.	比較となります。
	料」にて開示した数値を修正しております。
*1-5: We revised the figures disclosed in "the materials for Financial Results for the First Six Months of the Fiscal Year Ending February 28, 2025".	5
	Copyright © 2025 WORLD CO.,LTD. All Rights Reserved.

Financial Statements: Balance Sheet

MC Fashion Co., Ltd., newly consolidated at the end of FY02/25, has a high portion of such current assets as trade receivables, which is completely contrary to the fact that Laxus Technologies, Inc., excluded from consolidation, has a lot of such non-current assets as goodwill. In addition, inventories remain almost the same as those for the previous FY after excluding the impact of inventories for MC Fashion Co., Ltd. to the consolidated figure.
In February 2025, we completed the third refinancing of our perpetual subordinated loan, ahead of schedule. Compared with the end of the previous FY (the beginning of the current FY), 10 billion yen has been deducted from equity and added to borrowings, however, the net interest-bearing debt has been kept at an increase of 11.8 billion yen. The increase is kept within the consolidation impact of MC Fashion Co., Ltd. (11.9 billion yen) and the impact of full payment of the perpetual subordinated loan could be absorbed by the current FY's cashflow increase.

																							①
												February 28,
																February 29,
																						（注）
																						Consolidati
									2025					2024						MCF
																	Change		on impact
#						(Millions of yen)		% of total			% of total
																		連結影響
																					of MCF (*2)
11					Cash and deposits		21,748	7.9%		20,848	8.7%	900		10,738
12											13.5%		16,006	6.7%	21,017		22,255
				Trade receivables (b)			37,023
13					Inventories		27,756	10.1%	26,175	10.9%	1,580	1,604

14				Current assets			90,126	32.9%	66,362	27.7%	23,764	36	,366
15					Property, plant and equipment		35,445	12.9%		37,324	15.6%	-1,879				369
16					Right-of-use assets		40,139	14.7%		33,162	13.8%	6,976		4,560
17					Goodwill	57,176	20.9%	60,317	25.2%	-3,140				0

18					Intangible assets		79,024	28.9%	84,049	35.1%	-5,025				550
19					Financial assets		17,355	6.3%		11,479	4.8%	5,876		5,360

20			Non-current assets		183,754	67.1%		173,323	72.3%	10,431		11	,401
21	Total assets		273,880	100.0%		239,685	100.0%	34,195		47	,767
22					Trade payables (b)		27,772	10.1%		20,291	8.5%	7,481		8,331
23						Borrowings		86,779	31.7%	74,253	31.0%	12,526	22,500
24						Lease liabilities (c)		4,882	1.8%		4,713	2.0%	169				120

25					Interest-bearing debt		91,661	33.5%	78,966	32.9%	12,695	22,620
26	②				187,375			151,267
		Total liabilities		68.4%	63.1%	36,108		42	,862
27					Equity attributable to owners of the parent			81,254	29.7%	82,010	34.2%	-756	4,905
28		Total	Interest-bearing debt			5,251	1.9%		6,407	2.7%	-1,156				0
29		equity		86,505	31.6%		88,418	36.9%	-1,913		4	,905

30	Total liabilities and equity	273,880	100.0%	239,685	100.0%	34,195	47	,767

Increase / decrease of inventories

[Newly consolidated]

MC Fashion Co., Ltd.+1.6 billion yen

&Bridge + 0.1 billion yen

[Current businesses]

Tin Pan Alley Co., Ltd. + 0.3 billion yen

Narumiya International+ 0.5 billion yen

KP (newly consolidated) - included

in Narumiya	+ 0.2 billion yen
World	- 0.7 billion yen

Seasonal items - included in World - 0.4 billion yen Items continued - included in World

- 0.3 billion yen

Refinancing of the perpetual subordinated loan

[The previous FY]

September 2023	5 billion yen
[The current FY]
June 2024	5 billion yen
February 2025	5 billion yen

Trade receivables include notes and accounts receivable only. Trade payables include notes and accounts payable only.
Of the lease liabilities, these figures represent finance lease liabilities under J-GAAP.

Figures for FY03/23 have been adjusted to reflect the finalization of provisional accounting treatments for business combinations. (*2) We indicate the consolidation impact of MC Fashion Co., Ltd., newly consolidated at the end of FY02/25 for reference.

Financial Statements: Cash Flow Statement

In FY02/25, there were such special factors as unplanned M & A toward the end of FY02/25. The free cash flow (FCF) in real terms was good at slightly over 15 billion yen, considering the temporary factor that we paid out 7 billion yen in total, 5.2 billion yen to MC Fashion Co., Ltd. and 1.7 billion yen to Right-on Co., Ltd.
Though we recorded 13.5 billion yen as the FCF in real terms in FY02/24, as it was the irregular settlement of accounts for 11 months, which did not include the month of March when we needed to make substantial payment for purchase of spring items, in FY02/25, we could achieve a CF generation capability which is far beyond that for FY02/24.

(Millions of yen)

Profit (loss) before tax

Depreciation and amortization

Decrease (increase) in working capital (d)

Other, net

Net cash provided by (used in) operating activities

15,506	11,186	4,320		益の増加
					Increase in profit before tax
18,103		15,680	2,423
411	2,824
-2,412		Increase /売decrease:上債権Decrease減少（▲33in trade億円receivables） (- 3.3
					billion yen)
△2,029		△2,231	202
		(FY02/25: +1.2 billion yen, FY02/24: + 4.6 billion yen)
				(当期＋12億円、前期＋46億円)
31,992	27,459	4 , 5 3 3

Purchase (or proceeds from sale) of property, plant and equipment, net

Purchase (or proceeds from sale) of marketable securities, net (e)

Purchase (or proceeds from sale) of intangible assets, net

Payments for (or proceeds from collection of) leasehold deposits and guarantee deposits, net

Other, net

2,130 △892 -1,238
6,390 △137 -6,253

△1,693		△2,653	960

△276	212	-488

228		1,509	-1,281

MCファッション取得(▲52億円)

FY02/25: Acquisition of MA Fashion Co., Ltd. (-5.2 billion yen)

Acquisition of Right-on Co., Ltd. (-1.2 billion yen) ライトオン取得(▲12億円)

FY02/25:ラLoanイトto オRightン-貸on付Co（., Ltd▲5. (億-0.5円billion） yen)

Net cash provided by (used in) investing activities

Free cash flow

Decrease (increase) in borrowings and bonds payable

Repayments of lease obligations

Equity-related income and expenses

Other, net

10,262 △1,961 - 8 , 3 0 1

21,730 25,498 - 3 , 7 6 8

7,375 △4,453 11,828

13,638 △11,984 -1,654
13,579 △8,432 -5,147
- 914 △631 -283

FY02/25: Borrowings and repayments by MC Fashion Co.,

MCファッション調達･返済（115億円） Ltd. (11.5 billion yen)

Increase 劣/ decrease:後ローンRepayments返済（▲50of the億perpetual円） subordinated loan (- 5 billion yen)

Increase配当in支dividend払増加 payments（▲2億(-円0.2）billion yen)

Net cash provided by (used in) financing activities

Net increase (decrease) in cash and cash equivalents

△ 20,755 △ 25,500 4 , 7 4 5

900 163 7 3 7


Free cash flow in real terms (f) (#42-44)	8,092	13,514	- 5 , 4 2 2

The change in working capital is calculated as follows: change in trade receivables + change in inventories - change in trade payables
Marketable securities include shares of subsidiaries and affiliates in addition to investment securities.
Net increase (decrease) in cash and cash equivalents also includes the effect of exchange rate changes on cash and cash equivalents.

Financial Statements: Plan for Three Management Indicators

Growth

Profitability

Soundness

Core operating

profit Main businesses' earning power CAGR of 8%

ROE 12.0%

or higher

ROIC (net

basis) 8.5%

or higher

Net D/E ratio 0.5X or lower

172		The COVID-19						166	170
	pandemic					152	164
	131						135
					114

					54
		-23		-0					(Unit: 100 Millions of yen)

			-65
1H	2H	1H	2H	1H	2H	1H	2H	1H	2H	1H	2H
2020/3	2021/3	2022/3	2023/3	2024/2	2025/2
15.7%
											13.6%
	10.2%								10.0% 10.7%
								8.8%
9.7%							7.1%
										8.5%
						4.5%

	6.3%							5.5%	6.4%	6.8%
							4.8%
					0.3%
					3.2%
		Incalculable (deficit)	0.7%

		1.06X
			0.84X	0.90X	0.87X	0.83X		0.82X		0.86X
	0.80X

0.75X						0.76X
							0.71X 0.72X

1H	2H	1H	2H	1H	2H	1H	2H	1H	2H	1H	2H
2020/3	2021/3	2022/3	2023/3	2024/2	2025/2
									Reference*

Core operating profit

Rolling average for the past one year

Core operating profit

Though it was the highest profit as FY, it did not marginally overachieve the previous highest profit in real terms after the relisting (17.2 billion yen).

ROE (top: orange)

ROIC (bottom: blue)

Rolling average for the past year

ROE (Return on Equity)

We achieved the target value of 12% and try to make further improvement.

ROIC (Return on Invested Capital)

In preparation to introduce ROIC by business
We temporarily achieved the target value of 8.5%.

Net D/E ratio

Trend at the end of each six-month period

Net D/E ratio

We completed the third repayment of the perpetual subordinated loan, ahead of schedule to completely pay 15 billion yen.
It substantially deteriorated temporarily due to unplanned M & A, and it is necessary to improve once again toward 0.5X.

Note 1: ROIC is calculated by NOPAT divided by (beginning and ending balance average shareholders' equity + net interest-bearing debt (loan + lease obligations excluding right-of-use liability - cash and deposits)).
Note 2: Net D/E ratio is calculated by ending net interest-bearing debt (loan + lease obligations excluding right-of-use liability - cash and deposits) divided by ending shareholders' equity.
*The figures for core operating profit, ROE and ROIC for 2H of FY02/24 are calculated by adding the actual performance of March 2024 to the actual results of FY02/24, and those for 1H of FY02/25 are calculated by adding the
actual performance of September 2024 to the actual results of 2H of FY02/24 and of 1H of FY02/25.	Copyright © 2025 WORLD CO.,LTD. All Rights Reserved.	8

Segment Information: Segment Composition

The number in parentheses after a company name represents the total number of entities within that subsidiary's group.

Example: ABC Co., Ltd. (X)

		50 Group companies
Corporate	Digital	Parent, 45 subsidiaries, and four affiliates*
* Equity-method affiliates (italics, underlined)

Brand business		Digital business		Platform business

Domestic apparel brands

Middle upper (6)

Feels International Co., Ltd. (four group companies) Explorers Tokyo Co., Ltd. (two group companies)

Middle lower (9)

Arcus International Co., Ltd. (two group companies) Pink Latte Co., Ltd. KaysWay Co., Ltd.

Narumiya International Co., Ltd. (5 group companies)

Overseas

Overseas subsidiaries(3)

World Taiwan Fashion Co., Ltd.

World Saha Fashion Co., Ltd.

Co.,Ltd. 2

Domestic lifestyle brands

Accessories (3)

World Lifestyle Creation Co., Ltd.

Lifestyle Innovation Co., Ltd.

COCOSHNIK Co., Ltd.

Investment

M&A brands (7)

World Investment Network Co., Ltd. HIROFU Co., Ltd.

Kobe Leather Cloth Co., Ltd. (two group companies) STRASBURGO Co.,Ltd. W&D Investment Design Inc.

Right-on Co., Ltd.

B2B solutions

Digital solutions(2)

Fashion-Co-Lab. Co., Ltd.

OpenFashion Inc. 1

B2C neo economy

Neo economy (3)

Tin Pan Alley Co., Ltd.

& Bridge Co., Ltd.

Intermediate Holdings

World Platform Service Co., Ltd.

Production platform

Production (9)

World Production Partners Co., Ltd. La Mode Co., Ltd.

World㈱ワーSewingルドソーCoイ.,ンLtdグ.MCエム FashionシーファCoッシ., Ltdョン. ㈱(4（companies)4社） 1

Idiom Co., Ltd.

WP2 (Shanghai) Trading Co., Ltd.

Sales platform

Sales (1)

World Store Partners Co., Ltd.

Shared service platform

Administrative services (1)

World Business Support Co., Ltd.

1	Making consolidated subsidiaries
To acquire "MC Fashion Co., Ltd." from Mitsubishi Corporation to expand B2B external
	sales in the Platform business
	To acquire "World Sewing Co., Ltd." from TSI Inc. to reinforce domestic production
	capacity for the Platform business
	To turn "Open Fashion Inc.", our affiliated company accounted for by the equity-method, into
	Subsidiary to further reinforce B2B solution for the Digital business
2	New establishment (overseas local entities)
To establish "World Saha (Thailand) Co., Ltd." in a joint venture with Saha Group to
	start a full-fledged operation of circular business in Thailand.
	Making affiliated companies accounted for by the equity-method
	To turn "Laxus Technologies, Inc." into an affiliated company accounted for by the equity-
3
Method as a result of IPO
	To turn "Right-on Co., Ltd." into an affiliated company accounted for by the equity-method

after it became a subsidiary of W&D Investment Design Inc., an investment company

Lifestyle platform

Space creation (3)

ASPLUND Co., Ltd.

World Fashion (Shanghai) Co., Ltd.

World Amber Co., Ltd.

Segment Information:

Revenue by Segment

In the Brand business, the segment profit decreased vs that for FY03/24 (12-month period) due to the sluggish performance of certain middle-lower brands in apparel in spite of the good performance of lifestyle brands.
In the Digital business, we achieved double-digit revenue increase and profit increase as well as the highest profit due to the increase of both B2C circular business and B2B solution business.
In the Platform business, the profit substantially increased vs that for FY03/24, though there remained such an issue as disappointing sales growth for B2B external sales.

FY02/25

(Millions of yen)

Revenue

Of which, external revenue

% of total

vs FY03/24

Segment profit (*)

vs. sales revenue

vs FY03/24

Operating profit

							合計
							Total
					調整額

				Total	Adjustment
Brand business	Digital business	Platform business	Corporate



198,893	32,536	74,452	10,047	315,928	△90,270	225,658

190,637	14,454	20,422	145	225,658	0		225,658

84.5%	6.4%	9.0%	0.1%	100.0%	－	100.0%
100%	110%	104%	122%	101%	－	101%
11,057	2,619	1,829	1,485	16,991	22		17,013
5.6%	8.1%	2.5%	14.8%	5.4%	－	7.5%
96%	133%	156%	80%	103%	－	103%
9,285	2,614	6,748	△1,143	17,504	△708	16,796

We calculate each growth rate against the reference figures for FY03/24 (figures calculated for 12-month period)

We indicate the reference figures for FY03/24 (figures calculated for 12-month period) instead

of FY02/24 actual results.

FY03/24 for reference (*2) FY03/24: 12-month period)

(Millions of yen)

Revenue

Of which, external revenue

% of total

Segment profit (*)

vs. sales revenue

Operating profit

								合計
						調整額		Total

					Total	Adjustment
Brand business	Digital business		Platform business	Corporate



197,968	32,611		76,362	7,588	314,529	△91,268	223,261

190,309	13,107		19,727	118	223,261	0		223,261

85.2%	5.9%	8.8%	0.1%	100.0%	－	100.0%

11,576	1,967		1,170	1,861	16,574	△131	16,443

5.8%	6.0%	1.5%	24.5%	5.3%	－	7.4%

7,764	2,103		1,276	1,654	12,797	2,262		15,059

The segment profit is the same figure as the core operating profit showing the main businesses' earning power. (*2): It is calculated by adding the actual performance of March 2024 to FY02/24 actual results.

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