Presentation Materials for the Interim Financial Results Briefing for the Fiscal Year Ending February 2027 | WORLD CO.,LTD. (3612) timely disclosure

Worth reading

78Important

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

5573

Millions of yen (year-on-year increase in revenue)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationFirst half of the fiscal year ending February 2027 (69th fiscal year)12 items taken from the company’s own explanation

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

Net Sales¥142,489 million+4.0%

Operating profit¥8,409 million+1.0%

Net income¥5,877 million+4.0%

Operating profit margin5.9 %

Selling, general and administrative expenses¥63,220 million

Full-year earnings forecast

Revenue

¥300,000 million

Gross profit

¥154,500 million

Selling, General and Administrative Expenses

¥136,000 million

Business profit

¥18,500 million

Operating profit

¥17,500 million

EBIT (earnings before interest and taxes)

¥17,550 million

Profit before tax

¥15,550 million

Profit for the period attributable to owners of the parent

¥12,600 million

NOPAT

¥14,530 million

DPS

¥67

What the company explained in this material

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

Business profit was broadly in line with plan, while all profit levels from operating profit downward met plan. The 3 apparel companies fell short of plan.

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

The 3 apparel companies fell short of plan¥-1,310 million
The 3 apparel companies originating from World fell short of plan¥-1,800 million
New consolidation of Light On, World Style Labels and others
Supply-chain businesses including MC Fashion

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Existing-store sales growth rate100.4%

Net change in store count-13

Store openings99

Number of store closures-112

E-commerce sales growth rate104.6%

New initiatives

SKYSCAPE to become a wholly owned subsidiary effective 30 September 2026
Second phase of structural reforms at underperforming apparel brands, including brand consolidation and withdrawals
Introduction of performance-linked PSUs for senior executives
Introduction of employee RSUs for employees at the core department-manager level
Reopening offices in multiple overseas countries

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

Adjusted free cash flow¥5,296 million
Year on year against the same period last year+6,104.0%
ROE13.3 %
ROIC7.2 %
Net debt-to-equity ratio1.06 times
TSR Index99.8 %
Investment ROIC9 %

Segment results

B2C business

Revenue108,403

Business profit4,559

Operating profit4,595

Year-on-year revenue comparison (%)8

Business profit year-on-year_pct0

B2B Business

Revenue49,845

Business profit3,089

Operating profit3,136

Year-on-year revenue comparison (%)-5

Business profit year-on-year_pct12

Corporate and other

Revenue7,284

Business profit637

Operating profit605

Year-on-year revenue comparison (%)-2

Business profit year-on-year_pct-39

Medium-term management plan targets

Profit attributable to owners of the parent8% annual growth

ROE12.5% or more

ROICAt least 8.5%

Net debt-to-equity ratio0.75x or less

Investment ROICMore than 11% in the fiscal year ending February 2029, 20% over the medium to long term

Financial targets

ROE

Target12.5% or more

Actual results13.3 %

ROIC

TargetAt least 8.5%

Actual results7.2 %

Net debt-to-equity ratio

Target0.75x or less

Actual results1.06 times

Number of stores and locations

Stores opened during the period99

Stores closed during the period112

Annual Dividend

Annual¥67

Interim¥31

End of period¥36

Payout ratio

The higher of 40% or a 5% DOE

Gross profit

¥71,578 million

margin_pct50.2

yoy_change_pt1

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	First half of the fiscal year ending February 2027 (69th fiscal year)
Net Sales	¥142,489 million (YoY +4.0%)
Operating profit	¥8,409 million (YoY +1.0%)
Net income	¥5,877 million (YoY +4.0%)
Gross profit	¥71,578 million
Operating profit margin	5.9 %
Selling, general and administrative expenses	¥63,220 million
Full-year earnings forecast	Revenue ¥300,000 million / Gross profit ¥154,500 million / Selling, General and Administrative Expenses ¥136,000 million / Business profit ¥18,500 million / Operating profit ¥17,500 million / EBIT (earnings before interest and taxes) ¥17,550 million / Profit before tax ¥15,550 million / Profit for the period attributable to owners of the parent ¥12,600 million / NOPAT ¥14,530 million / DPS ¥67
Self-assessment against the plan	Business profit was broadly in line with plan, while all profit levels from operating profit downward met plan. The 3 apparel companies fell short of plan.
Segment results	B2C business Revenue 108,403 / Business profit 4,559 / Operating profit 4,595 / Year-on-year revenue comparison (%) 8 / Business profit year-on-year_pct 0 / B2B Business Revenue 49,845 / Business profit 3,089 / Operating profit 3,136 / Year-on-year revenue comparison (%) -5 / Business profit year-on-year_pct 12 / Corporate and other Revenue 7,284 / Business profit 637 / Operating profit 605 / Year-on-year revenue comparison (%) -2 / Business profit year-on-year_pct -39
Breakdown of Factors Affecting the Change	Factors The 3 apparel companies fell short of plan / Amount ¥-1,310 million, Factors The 3 apparel companies originating from World fell short of plan / Amount ¥-1,800 million, Factors New consolidation of Light On, World Style Labels and others / Amount Not disclosed, Factors Supply-chain businesses including MC Fashion / Amount Not disclosed
Key KPIs	Indicator name Adjusted free cash flow / Value ¥5,296 million / Year on year against the same period last year ¥6,104 million, Indicator name ROE / Value 13.3 % / Year on year against the same period last year Not disclosed, Indicator name ROIC / Value 7.2 % / Year on year against the same period last year Not disclosed, Indicator name Net debt-to-equity ratio / Value 1.06 times / Year on year against the same period last year Not disclosed, Indicator name TSR Index / Value 99.8 % / Year on year against the same period last year Not disclosed, Indicator name Investment ROIC / Value 9 % / Year on year against the same period last year Not disclosed
Number of stores and locations	Number at period-end Not disclosed / Stores opened during the period 99 / Stores closed during the period 112
Assumptions Underlying the Business Outlook	Existing-store sales growth rate 100.4% / Net change in store count -13 / Store openings 99 / Number of store closures -112 / E-commerce sales growth rate 104.6%
Medium-term management plan targets	Profit attributable to owners of the parent 8% annual growth / ROE 12.5% or more / ROIC At least 8.5% / Net debt-to-equity ratio 0.75x or less / Investment ROIC More than 11% in the fiscal year ending February 2029, 20% over the medium to long term
Financial targets	ROE Target 12.5% or more / Actual results 13.3 % / ROIC Target At least 8.5% / Actual results 7.2 % / Net debt-to-equity ratio Target 0.75x or less / Actual results 1.06 times
Annual Dividend	Annual ¥67 / Interim ¥31 / End of period ¥36
Payout ratio	The higher of 40% or a 5% DOE
New initiatives	SKYSCAPE to become a wholly owned subsidiary effective 30 September 2026, Second phase of structural reforms at underperforming apparel brands, including brand consolidation and withdrawals, Introduction of performance-linked PSUs for senior executives, Introduction of employee RSUs for employees at the core department-manager level, Reopening offices in multiple overseas countries

Items this document does not state (11)

Ordinary incomeResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital 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.

Regarding the revenue shortfall in the first half, the company cited delays in the effects of measures such as merchandising reforms at its apparel brands, particularly the sharp decline in summer-product sales in June. It said that the impact of lower revenue was offset by contributions from the newly consolidated Light On and World Style Labels, circular businesses such as Tin Pan Alley, and B2B businesses such as MC Fashion.

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