Financial Results Presentation Materials for the Fiscal Year Ending February 2026 | WORLD CO.,LTD. (3612) timely disclosure

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68In focus

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

-606

¥ million (year-on-year change in core operating profit)

Wording

Conditional

How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFull fiscal year ended February 2026 (fiscal year 68)9 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥284,014 million+126.0%

Operating profit¥16,028 million+96.0%

Ordinary income¥14,203 million +92.0%profit before tax

Net income¥12,013 million +109.0%profit attributable to owners of the parent

Gross Profit Margin49.2 %

Operating profit margin5.6 %

Selling, general and administrative expenses¥123,267 million

Full-year earnings forecast

Revenue

¥282,000 million

Gross profit

¥139,000 million

Selling, General and Administrative Expenses

¥122,600 million

Core operating profit

¥16,400 million

Operating profit

¥16,000 million

Profit before tax

¥14,200 million

Profit for the period attributable to owners of the parent

¥12,000 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Results were broadly in line with the revised forecast, but fell significantly short of the initial forecast

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Change in inventories

Right-on+¥3.87 billion

MCF+¥390 million

Other+¥210 million

Total+¥4.47 billion

Existing businesses total-¥550 million

Adjusted free cash flow

Increase from the previous year+¥4.2 billion

Current fiscal year¥12.3 billion

Profit before tax-¥1,237 million

Reduction in income taxes and other taxesTax-effect accounting associated with an intra-group reorganisation and the cessation of profit outflows to non-controlling interests following the conversion of Narumiya into a wholly owned subsidiary

New initiatives

Transition to the VISION-W medium-term management plan
Reorganisation into 2 major segments: B2C and B2B businesses
Conversion of Right-on into a wholly owned subsidiary
Establishment of WORLD FASHION (HONG KONG), which will develop circular businesses and other operations in Hong Kong
Acquisition of 100% of the shares of World Style Labels
Structural reform of underperforming apparel businesses, strategic restraint on the number of styles and purchasing, and reductions and redeployment of head-office personnel across the group
Building an AI-ready data platform and accelerating AI-related proof-of-concept projects
Introduction of a performance-linked restricted stock compensation plan and related schemes

Key KPIsA metric the company considers important as a management benchmark.

ROE13.7 %
Year on year against the same period last yearPrior fiscal year: 13.5%
ROIC8.8 %
Year on year against the same period last yearPrior fiscal year: 8.5%
Net debt-to-equity ratio0.72 times
Year on year against the same period last yearPrior fiscal year: 0.86x
Net interest-bearing debt678 Hundreds of millions of yen
Year on year against the same period last yearPrior fiscal year: ¥69.9 billion
PBRRecovery to 1x
TSR151.3 % from 28 September 2018
Adjusted free cash flow¥12,271 million
Year on year against the same period last year+8,092.0%

Segment results

Brand business

Business profit¥8,900 million

Digital Business

Business profit¥2,300 million

Platform Business

Business profit¥4,200 million

Medium-term management plan targets

VISION-W

Revenue¥330 billion from existing businesses, with ¥500 billion within reach initially and the goal of becoming a ¥1 trillion company over the long term

Net debt-to-equity ratio0.75x

Net assets¥120 billion

Medium-term TSR11%

Medium-term ROIC8.5%

Medium-term ROE12.5%

Medium-term DOE5.0%

Target fiscal yearRoadmap toward the fiscal year ending February 2029

Financial targets

Net debt-to-equity ratio

Target0.75 times

Actual results0.72 times

ROIC

Target8.5 %

Actual results8.8 %

ROE

Target12.5 %

Actual results13.7 %

DOE

Target5 %

Payout ratio

40 % VISION-W policy

DOE5% or more

Acquisition of treasury shares

Mentioned as an option if excessive dilution occurs. Acquisition limit, number of shares and period: Not disclosed

Contents of this document
Item	Details
Document type	Presentation materials for financial results
Fiscal Period Covered	Full fiscal year ended February 2026 (fiscal year 68)
Net Sales	¥284,014 million (YoY +126.0%)
Operating profit	¥16,028 million (YoY +96.0%)
Ordinary income	¥14,203 million (profit before tax) (YoY +92.0%)
Net income	¥12,013 million (profit attributable to owners of the parent) (YoY +109.0%)
Gross Profit Margin	49.2 %
Operating profit margin	5.6 %
Selling, general and administrative expenses	¥123,267 million
Full-year earnings forecast	Revenue ¥282,000 million / Gross profit ¥139,000 million / Selling, General and Administrative Expenses ¥122,600 million / Core operating profit ¥16,400 million / Operating profit ¥16,000 million / Profit before tax ¥14,200 million / Profit for the period attributable to owners of the parent ¥12,000 million
Self-assessment against the plan	Results were broadly in line with the revised forecast, but fell significantly short of the initial forecast
Segment results	Brand business Business profit ¥8,900 million / Year on year against the same period last year Not disclosed / Digital Business Business profit ¥2,300 million / Year on year against the same period last year Not disclosed / Platform Business Business profit ¥4,200 million / Year on year against the same period last year Not disclosed
Breakdown of Factors Affecting the Change	Change in inventories Right-on +¥3.87 billion / MCF +¥390 million / Other +¥210 million / Total +¥4.47 billion / Existing businesses total -¥550 million / Adjusted free cash flow Increase from the previous year +¥4.2 billion / Current fiscal year ¥12.3 billion / Profit before tax -¥1,237 million / Reduction in income taxes and other taxes Tax-effect accounting associated with an intra-group reorganisation and the cessation of profit outflows to non-controlling interests following the conversion of Narumiya into a wholly owned subsidiary
Key KPIs	Indicator name ROE / Value 13.7 % / Year on year against the same period last year Prior fiscal year: 13.5%, Indicator name ROIC / Value 8.8 % / Year on year against the same period last year Prior fiscal year: 8.5%, Indicator name Net debt-to-equity ratio / Value 0.72 times / Year on year against the same period last year Prior fiscal year: 0.86x, Indicator name Net interest-bearing debt / Value 678 Hundreds of millions of yen / Year on year against the same period last year Prior fiscal year: ¥69.9 billion, Indicator name PBR / Value Recovery to 1x / Year on year against the same period last year Not disclosed, Indicator name TSR / Value 151.3 % (from 28 September 2018) / Year on year against the same period last year Not disclosed, Indicator name Adjusted free cash flow / Value ¥12,271 million / Year on year against the same period last year ¥8,092 million
Medium-term management plan targets	VISION-W Revenue ¥330 billion from existing businesses, with ¥500 billion within reach initially and the goal of becoming a ¥1 trillion company over the long term / Net debt-to-equity ratio 0.75x / Net assets ¥120 billion / Medium-term TSR 11% / Medium-term ROIC 8.5% / Medium-term ROE 12.5% / Medium-term DOE 5.0% / Target fiscal year Roadmap toward the fiscal year ending February 2029
Financial targets	Net debt-to-equity ratio Target 0.75 times / Actual results 0.72 times / ROIC Target 8.5 % / Actual results 8.8 % / ROE Target 12.5 % / Actual results 13.7 % / DOE Target 5 % / Actual results Not disclosed
Payout ratio	40 % (VISION-W policy)
Acquisition of treasury shares	Mentioned as an option if excessive dilution occurs. Acquisition limit, number of shares and period: Not disclosed
New initiatives	Transition to the VISION-W medium-term management plan, Reorganisation into 2 major segments: B2C and B2B businesses, Conversion of Right-on into a wholly owned subsidiary, Establishment of WORLD FASHION (HONG KONG), which will develop circular businesses and other operations in Hong Kong, Acquisition of 100% of the shares of World Style Labels, Structural reform of underperforming apparel businesses, strategic restraint on the number of styles and purchasing, and reductions and redeployment of head-office personnel across the group, Building an AI-ready data platform and accelerating AI-related proof-of-concept projects, Introduction of a performance-linked restricted stock compensation plan and related schemes

Items this document does not state (12)

Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company cited the slowdown in the fourth quarter, weak performance by its major apparel brands, purchasing and remaining inventory tied to sales plans that lacked a realistic basis, and declines in product development, merchandising accuracy and sales capabilities. The decrease in income taxes and other taxes was attributed to tax-effect accounting associated with an intra-group reorganisation and the cessation of profit outflows to non-controlling interests following the conversion of Narumiya into a wholly owned subsidiary.

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