Consolidated Financial Results for 2022
[Japanese GAAP]
February 14, 2023

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange
2429
URL: http://www.world-hd.co.jp
Eikichi Iida, Chairman and President
Shigeru Nakano, Director, Business Management Division Manager
Tel: +81-92-474-0555
Scheduled date of Annual General Meeting of Shareholders:March 24, 2023
Scheduled date of payment of dividend:
March 27, 2023
Scheduled date of filing of Annual Securities Report:
March 27, 2023
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for 2022 (January 1 to December 31, 2022)(1) Consolidated results of operations
Net sales(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Operating profit%

Million yen

183,640
18.7
2022
2021
154,704
7.8
Note: Comprehensive income (millions of yen)

Million yen

8,929
7,481

%

Million yen

%

19.3
8,933
19.7
7,738
2022: 5,346 (up 10.5%)

Net income per share

Diluted net income
per share

Yen

Yen

%

Ordinary profit on Operating profit tototal assets
net sales

Return on equity2022
305.50303.822021
265.02263.19Reference: Equity in earnings of affiliates (millions of yen)
2022: -

Million yen

15.4
5,341
15.5
14.0
4,626
(21.8)
2021: 4,838 (down 18.8%)

%

%

%

16.0
15.4

8.1
8.8
2021: -

4.9
4.8(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

123,591
As of Dec. 31, 2022
As of Dec. 31, 2021
97,269Reference: Shareholders’ equity (millions of yen)

Net assets per share%

37,19533,226
As of Dec. 31, 2022: 35,408

Yen

28.6
2,019.89
32.4
1,803.96
As of Dec. 31, 2021: 31,501(3) Consolidated cash flows
Cash flows fromoperating activities
2022
2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen(4,765)1,370(5,990)(1,782)

15,064
7,990

35,07830,748

2. Dividends
Dividends per share
1Q-endTotal

Dividend on
equity(consolidated)

2Q-end3Q-end

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00
0.00
0.00

-

79.50
91.50
103.5079.50
91.50
103.50

1,388
1,603

30.0
30.0
30.0

4.6
4.8

2021
2022
2023 (forecast)Year-end

Total
Payout ratio
dividends (consolidated)

3. Consolidated Forecast for 2023 (January 1 to December 31, 2023)
Net salesFirst half
Full year

Operating profit(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

Yen

88,736201,354

2.9
9.6

2,507
9,916

(45.8)
11.1

2,433
9,453

(48.7)
5.8

1,543
6,045

(39.5)
13.2

88.03
344.84

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: -Excluded: -(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: Please refer to the section “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial
Statements, Changes in Accounting Policies” on page 15 for further information.

(3) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Dec. 31, 2022:

17,643,500 shares

As of Dec. 31, 2021:

17,575,900 shares

As of Dec. 31, 2021:

113,573 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2022:

113,573 shares

3) Average number of shares during the period
2022:

17,484,077 shares

2021:

17,456,325 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for 2022 (January 1 to December 31, 2022)(1) Non-consolidated results of operations
Net sales
2022
2021

Million yen%

Million yen%

Million yen%

Million yen

%

3,221
2,461

30.9
39.9

676
372

81.9
-

2,785
1,724

61.5
(12.6)

2,220
1,566

41.8
(36.4)Net income per share
2022
2021

(Percentages represent year-on-year changes)
Ordinary profit
ProfitOperating profit

Diluted net income per
share

Yen

Yen

127.03
89.75

126.3389.13(2) Non-consolidated financial position
Total assets

Net assets

Million yen

As of Dec. 31, 2022
62,685
As of Dec. 31, 2021
49,686
Reference: Shareholders’ equity (millions of yen)

Equity ratio

Million yen

19,431
18,491
As of Dec. 31, 2022: 19,355

Net assets per share
%

Yen

30.9
1,104.12
37.0
1,053.57
As of Dec. 31, 2021: 18,397* The current financial report is not subject to audit by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements, and other special items
Cautionary statement with respect to forecasts
Forecasts of future performance in this document are based on assumption judged to be valid and information currently
available to the Company’s management, but are not promises by the Company regarding future performance. Actual results
may differ materially from the forecasts for a number of reasons. Please refer to “1. Overview of Results of Operations, (5)Outlook” on page 5 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for financial results
The Company plans to hold a financial results meeting for institutional investors and analysts on Wednesday, February 22,2023. Supplementary materials to be distributed at this event will be disclosed on the same day, using the Timely Disclosure
network (TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

4(3) Cash Flows

5(4) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years

5(5) Outlook

5

2. Basic Approach for the Selection of Accounting Standards

6

3. Consolidated Financial Statements and Notes

7(1) Consolidated Balance Sheet

7(2) Consolidated Statements of Income and Comprehensive Income

9

Consolidated Statement of Income

9

Consolidated Statement of Comprehensive Income

10(3) Consolidated Statement of Changes in Equity

11(4) Consolidated Statement of Cash Flows

13(5) Notes to Consolidated Financial Statements

15

Going Concern Assumption

15

Segment and Other Information

15

Change in Accounting Policies

15

Per-share Information

18

Subsequent Events

18

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

1. Overview of Results of Operations(1) Results of Operations
During the fiscal year under review, the Japanese economy followed an overall recovery trend from the effects ofthe prolonged Covid crisis. However, another sharp rise in infections at the end of the fiscal year, geopoliticalrisks connected to the situation in Russia and Ukraine accompanied by soaring resource prices and distribution
costs, the ongoing depreciation of the yen, historic inflation, and other factors led to a strong sense of economic
stagnation and continued uncertainty about the future.
Under these circumstances, the Group responded appropriately to changes through the portfolio of multiple
businesses and industries it has built up, with the core business of Human Resources and Education performing
especially well and driving overall growth, resulting in an increase in sales and profits for the whole Group. We
also made a good start to the first fiscal year of our new five -year Medium-Term Management Plan 2026. Bothsales and operating profit were significantly higher than planned at the beginning of the year, reaching record
levels.
Net sales increased 18.7% year on year to 183,640 million yen (up 8.8% vs. plan). Operating profit increased
19.3% to 8,929 million yen (up 43.0% vs. plan), ordinary profit increased 15.4% to 8,933 million yen (up 47.6%
vs. plan), and profit attributable to owners of parent increased 15.5% to 5,341 million yen (up 38.3% vs. plan).
(The plan ratio mentioned above and below is the ratio of change from the initial plan announced on February 9,2022.)All activities of the World Holdings Group continue to be guided by the group’s purpose of “contributing tohappiness and a sustainable society through the creation of a variety of ways we live worldwide.” By promoting
investment in human capital and increasing its value, which is the group’s most important resource, we aredetermined to make even greater contributions to society while growing rapidly.
* As was explained in the announcement of the Medium-term Management Plan 2026, business segments havebeen reorganized beginning with 2022. Based on the goal of making services another major business category inaddition to the current core manufacturing category, the Human Resources and Education Business is now
divided into two sectors. Products Human Resources Business is staffing services mainly for manufacturing andServices Human Resources Business is staffing services mainly for the service sector. Other Businesses has beenrenamed the Agricultural Park Business and has the purpose of making a significant contribution to society
regarding the environment. (The year-on-year comparisons mentioned below are comparative analyses based on
the figures for the previous period reconfigured to reflect post-change segments).
Business segment sales were as follows.
Products Human Resources BusinessDespite the impact of the situation in Russia and Ukraine and the lockdown in China resulting from the Covid
pandemic, the Products Human Resources Business performed well due to the optimization of a businessportfolio driven by precise marketing, resulting in a year-on-year increase in sales and profits. In terms of
movements by industry, orders for electrical and electronic components as well as smartphones showed adownward trend in the second half of the fiscal year compared with the previous year, but strong sales ofsemiconductor-related and FA equipment-related products throughout the year in addition to new advances into
the automotive sector led to an upturn in business performance. Furthermore, the Group contributed to enhancing
profit by increasing production volume through its strengths of contracting and team dispatching, acquiring
large-scale projects, shifting to high-unit price projects, and reducing selling, general, and administrative (SG&A)
expenses through digital transformation (DX).
As regards recruitment, while difficulties continue due to a historic labor shortage, the Group positioned thisfiscal year as one for investment in the first year of our Medium -term Management Plan 2026. Accordingly, we
steadily increased employee numbers by promoting investment in hiring and improved retention throughenhancing employee training and career development structures, resulting in record -high enrolment.
As a result, sales were 88,598 million yen, up 25.4% year on year (up 13.4% vs. plan) and segment profit
increased 31.3% to 4,054 million yen (up 64.5% vs. plan).
2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

Services Human Resources Business
As announced in the Medium-Term Management Plan 2026, we are establishing the Services Human Resources
Business as a new pillar of the Human Resources and Education Business. In the service field, we focused on
logistics, tourism, and customer service sales to achieve growth, resulting in a more successful start than initiallyplanned.
In the mainstay logistics sector, orders and launches of new bases progressed smoothly, and in the tourism sector,
projects in collaboration with the JTB Group made steady progress. The vertical launch of customer service
sales-related projects also progressed with the inclusion of Dimples Co., Ltd. in the Group in February, and theGroup was able to respond steadily to special government-related demand in the first half of the fiscal year. As aresult, both sales and profits performed well overall and increased year on year.
Sales were 44,282 million yen, up 29.0% year on year (up 14.9% vs. plan) and segment profit increased 23.2% to1,125 million yen (up 92.9% vs. plan).
Real Estate BusinessThis business is operating with caution because real estate prices in Japan remain high. However, by seizing theright timing for sales, we sold and delivered more condominiums and business sites, mainly in the development
sector, than planned at the beginning of the fiscal year. As a result, sales and earnings increased.
We are purchasing real estate with caution while monitoring changes in the real estate market. We made steadyprogress with the acquisition of properties that will generate sales and afterward by using M&A activities,
expertise for the creation of commercial properties and other core real estate strengths.
Sales of new development projects also progressed steadily, including Residential Hara Branchera in Fukuoka
City, Fukuoka Prefecture; Residential Aoba Hirosegawa in Sendai City, Miyagi Prefecture; and Residential
Ikebukuro Honcho in Toshima Ward, Tokyo, which has been promoted as a disaster-prevention blockdevelopment project to eliminate areas with dense wooden housing. In addition, the Group steadily advanced
preparations for the next fiscal year and beyond, including the start of construction for the BIZ IA Kokura officebuilding, the first to be constructed in response to the Kokura -Kurosaki Rebitation initiative promoted by
Kitakyushu City, Fukuoka Prefecture.
Sales were 38,044 million yen, up 2.9% year on year (down 1.0% vs. plan), and there was a segment profit of
3,181 million yen, up 6.8% (up 57.0% vs. plan).
Information and Telecommunications Business
The mobile phone shop business is undergoing another phase of significant changes because of lower rates at all
mobile phone communication carriers, accompanied by new plans and other events. Sales were down due tolower sales per user and a decline in fee income caused mainly by revisions to the terms for fees.
As the role of stores in the mobile phone agency sector changes, we will continue to build a network ofoutstanding stores rooted in the communities where they are located and strengthen the corporate solutions
business and take other steps to create a powerful portfolio of businesses. The goal is to receive the benefits ofbeing one of the survivors in the mobile phone shop sector.
Sales were 8,399 million yen, down 10.3% year on year (down 13.8% vs. plan), and there was a segment profit of
125 million yen, up 6.3% (down 44.6% vs. plan).
Agricultural Park BusinessIn addition to the impact of the Covid crisis, the agricultural parks business was affected by bad weather, mainly
during holidays, and the soaring price of resources. Nevertheless, visitor numbers returned to pre -Covid levels
and sales and earnings both rose as the Group enhanced its presence by exploiting its great strength as a
non-dense outdoor park facility and implemented appropriate measures to attract visitors, including the'night-time illumination' launched at Harvest Hill, Sakai Green Museum.
Additionally, we exploited our accumulated facility management and operational expertise to launch the Ohashi
Kogen International Exchange Village, which began operation as a designated management project in April.

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

Moreover, we have steadily advanced preparations for acquiring new managed facilities in the next fiscal year
and beyond.
Sales were 4,314 million yen, up 28.1% year on year (up 9.2% vs. plan), and there was a segment profit of 158
million yen, compared with a segment loss of 20 million yen in 2021 (up 0.3% vs. plan).
Overview of Business Results by Segment(Millions of yen)
Products
Human
Resources
Business
Services
Human
Resources
Business

Human
ResourcesandEducation
Business

Subtotal(Reference)

Real EstateBusiness

Real EstateBusiness

2021
Result

2022
Plan(Initial)

2022
Plan
(Revised)

2022
ResultYear-on-year change
Amount%Net sales

70,667

78,15484,801

88,59817,931

25.4%

Segment profit

3,088

2,465

4,155

4,054

966

31.3%

(Profit margin)(4.4%)(3.2%)(4.9%)(4.6%)Net sales

34,32438,53744,64844,282

9,957

29.0%

Segment profit

912

583

996

1,125

212

23.2%

(Profit margin)(2.7%)(1.5%)(2.2%)(2.5%)Net sales

104,992

116,691

129,449

132,880

27,888

26.6%

1,178

29.4%

Segment profit

4,000

3,351

5,152

5,179

(Profit margin)(3.8%)(2.9%)(4.0%)(3.9%)Net sales

36,97738,43737,86838,044

1,067

2.9%

203

6.8%

Segment profit

2,977

2,026

2,840

3,181

(Profit margin)(8.1%)(5.3%)(7.5%)(8.4%)

Information
andTelecommunications
Business

Information Net sales
andSegment profit
Telecommunications(Profit margin)
Business

9,367

9,746

8,517

8,399

(967)

(10.3)%

118

227

182

125

7

6.3%

(1.3%)(2.3%)(2.1%)(1.5%)

Agricultural
Park
Business

Agricultural
Park
Business

Net sales

3,367

3,952

4,165

4,314

947

28.1%

Segment profit

(20)

158

226

158

179

-

(Profit margin)-(4.0%)(5.4%)(3.7%)

154,704

168,828

180,000

183,640

28,935

18.7%

Elimination or
corporate

405

481

0

284

(121)

(30.0)%

Operating profit

7,481

6,244

8,400

8,929

1,447

19.3%

(Profit margin)(4.8%)(3.7%)(4.7%)(4.9%)Net sales
Total(2) Financial Position
AssetsTotal assets increased 26,322 million yen from the end of 2021 to 123,591 million yen at the end of 2022. Thiswas mainly due to increases of 4,341 million yen in cash and deposits, 3,102 million yen in notes and accounts
receivable-trade, 14,270 million yen in real estate for sale in process and 3,467 million yen in goodwill.
Liabilities
Total liabilities increased 22,353 million yen from the end of 2021 to 86,395 million yen. This was mainly due toincreases of 5,348 million yen in short-term borrowings, 3,788 million yen in accrued expenses, 996 million yen
in income taxes payable and 11,394 million yen in long-term borrowings.
Net assets
Net assets increased 3,969 million yen from the end of 2021 to 37,195 million yen, mainly due to an increase of
3,953 million yen in retained earnings.

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

(3) Cash Flows
Cash and cash equivalents at the end of 2022 increased 4,329 million yen from the end of 2021 to 35,078 million
yen.
Cash flows from operating activities
Net cash used in operating activities was 4,765 million yen. Main positive factors include profit before income
taxes of 8,455 million yen, a 1,596 million yen increase in accrued expenses, a 713 million yen increase inaccrued consumption taxes and income taxes refund of 472 million yen. Major negative factors include a 1,615
million yen increase in trade receivables, a 12,075 million yen increase in real estate for sale and income taxes
paid of 2,638 million yen.
Cash flows from investing activities
Net cash used in investing activities was 5,990 million yen. Main positive factors include collection of loans
receivable of 13 million yen. Main negative factors include payments of 1,670 million yen for purchase ofproperty, plant and equipment and 4,165 million yen for purchase of shares of subsidiaries resulting in change inscope of consolidation.
Cash flows from financing activities
Net cash provided by financing activities was 15,064 million yen. Main positive factors include net increase in
short-term borrowings of 1,254 million yen and proceeds of 24,583 million yen from long -term borrowings. Main
negative factors include repayments of long-term borrowings of 9,316 million yen and dividends paid of 1,388
million yen.
Reference: Cash flow indicators
2018

2019

2020

2021

2022

Equity ratio (%)

26.3

25.9

36.1

32.4

28.6

Market value-based equity ratio (%)

45.3

37.3

43.2

46.5

35.6

Interest-bearing debt to cash flow ratio (%)

403.5

1,340.2

212.6

2,861.6(1,174.1)

Interest coverage ratio (times)

45.7

14.7

81.3

7.6

21.1

Equity ratio: Shareholders’ equity / Total assets
Market value-based equity ratio: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payments
Notes: 1. All indices are calculated based on consolidated figures.
2. Market capitalization is calculated by the total number of shares outstanding after the deduction of treasury shares.
3. Cash flows are calculated using the figures for operating cash flows on the consolidated statement of cash flows.
4. Interest-bearing debt includes all debt on the consolidated balance sheet that incur interest.

(4) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years
The basic policy for profit distributions is to distribute profits in a manner that reflects results of operations while
retaining sufficient earnings for future business operations and for making business operations stronger. For
dividends, the goal is to stably and consistently increase the dividend while using a consolidated payout ratio of
30% as the guideline for dividends. We plan to pay a year-end dividend of 91.50 yen per share for 2022, as statedin “Notice of Dividends from Surplus” announced on February 14, 2023. We plan to pay a year-end dividend of
103.50 yen per share for 2023 in accordance with this policy.
(5) Outlook
Regarding the outlook for fiscal 2023, we expect the business environment to become more difficult due to theslowdown in the global economy, and will proceed with formulating a cautious business plan. However, we
expect to increase revenues and profits by responding flexibly to economic fluct uations and achieving stable
growth through the Group’s strength in its portfolio of multiple businesses.
In the core Human Resources and Education Business, the Group will continue to invest aggressively in

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

recruitment with a view to handling large orders and expanding further while reducing selling, general, andadministrative (SG&A) expenses through digital transformation (DX), thereby strengthening its businessportfolio in multiple industries and achieving stable growth. In the real estate business, sa les of development
projects scheduled for delivery in fiscal 2023 are also progressing well, as mentioned above, as we proceed withcautious business development. By responding to all changes centered on both businesses and striving for stable
growth, we will continue pushing forward to achieve the Medium-Term Management Plan 2026.
Further details will be provided in the supplementary financial statement published on February 22, 2023.
Based on the above, we forecast net sales of 201,354 million yen (up 9.6% year on year), operating profit of
9,916 million yen (up 11.1% year on year), ordinary profit of 9,453 million yen (up 5.8% year on year), and profit
attributable to owners of parent of 6,045 million yen (up 13.2% year on year) in 2023.
2. Basic Approach for the Selection of Accounting Standards
The Group uses Japanese accounting standards.
Decisions about the use of International Financial Reporting Standards will be made by taking into consideration
the use of accounting standards in Japan and other countries.

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)2022
(As of Dec. 31, 2022)

2021(As of Dec. 31, 2021)
AssetsCurrent assets
Cash and deposits

30,74935,091

Notes and accounts receivable-trade

15,70618,809794

833

Real estate for sale

6,221

6,506

Work in process

126

113

Real estate for sale in process

28,82843,099

Other

3,663

3,811

(3)

(6)

86,088108,257

9,343

10,071

Accumulated depreciation(7,364)(7,621)

Buildings and structures, net

1,978

2,450

1,661

1,783

Merchandise and finished goods

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Land
Other

5,136

5,640

(3,310)(3,841)

1,826

1,798

5,466

6,032

Goodwill

592

4,059

Other

184

192

Total intangible assets

776

4,252

Investment securities

1,425

1,229

Deferred tax assets

1,831

2,047

Leasehold and guarantee deposits

1,051

1,191

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Other

868

932

Allowance for doubtful accounts

(239)

(352)

Total investments and other assets

4,938

5,049

Total non-current assets
Total assets

7

11,18015,333

97,269123,591

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

(Millions of yen)2022
(As of Dec. 31, 2022)

2021(As of Dec. 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable-trade

1,263

Accounts payable-real estate business

1,225

924

269

Short-term borrowings

25,45030,798

Accrued expenses

7,010

10,798Advances received

1,539

1,167

Income taxes payable

1,584

2,580

Accrued consumption taxes

2,796

3,307

105

225

Provision for bonuses
Other

6,510

5,115

Total current liabilities

47,18555,48913,75425,149

172

198

2,380

3,297

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Other

547

2,260

16,85630,90564,04286,395

Share capital

1,250

1,314

Capital surplus

1,449

1,504

Retained earnings

28,90832,862

Treasury shares

(119)

(119)

Total shareholders’ equity

31,48935,56115

14

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

27

40

Remeasurements of defined benefit plans

(31)

(207)

11

(153)

Share acquisition rights

Total accumulated other comprehensive income

9376

Non-controlling interests

1,631

1,710

Total net assets

33,22637,19597,269123,591

Total liabilities and net assets

8

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Millions of yen)2022
(Jan. 1 – Dec. 31, 2022)

2021(Jan. 1 – Dec. 31, 2021)
Net sales
Cost of sales

154,704
128,073

183,640
151,953

Gross profit

26,631

31,687

14
472
7,477
41
137

0
547
8,865
199
156

-

21

1,403
391
1,188
112
7,909

1,776
458
1,346
495
8,889

19,14922,758

7,481

8,929

14
289

15
140

5

3

203

228

513

387

177
23
56

225
53
105

257

383

7,738

8,933

1
42

6
-

43

6

15

126
28

253

322

0

5

Selling, general and administrative expenses
Provision of allowance for doubtful accounts
Remuneration for directors (and other officers)
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Provision for retirement benefits for directors (andother officers)
Welfare expenses
Depreciation
Rent expenses
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Subsidy income
Income of support to investment in property andequipment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Insurance claim income
Gain on extinguishment of tie-in shares
Total extraordinary income
Extraordinary losses
Provision of allowance for doubtful accounts
Impairment losses
Loss on valuation of shares of subsidiaries andassociates
Loss on disaster

269

483

Profit before income taxes

Total extraordinary losses

7,511

8,455

Income taxes-current
Income taxes-deferred

1,935
797

3,511
(559)

Total income taxes

2,732

2,951

Profit

4,779

5,504

Profit attributable to non-controlling interests
Profit attributable to owners of parent

9

153

162

4,626

5,341

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

Consolidated Statement of Comprehensive Income(Millions of yen)2022
(Jan. 1 – Dec. 31, 2022)

2021(Jan. 1 – Dec. 31, 2021)
Profit

4,779

5,504

Valuation difference on available-for-sale securities

31

(1)

Foreign currency translation adjustment

40

19

Remeasurements of defined benefit plans, net of tax

(11)

(175)

Total other comprehensive income

59

(158)

4,838

5,346

4,671

5,172

166

173

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

(3) Consolidated Statement of Changes in Equity
2021 (Jan. 1 – Dec. 31, 2021)

Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance(Millions of yen)
Shareholders’ equity
Retained
Total shareholders’
Treasury shares
Capital stock Capital surplus
earnings
equity1,244
1,443
26,054(119)
28,623
1,244

1,443

5

5

26,054(119)

28,623

Changes during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Increase by addition of newly
consolidated subsidiary
Sales of shares of consolidated
subsidiaries
Net changes in items other thanshareholders’ equity
Total changes during period

11(1,775)(1,775)

4,626

4,626
(0)

3

3

0

Balance at end of period

0

5

6

2,854

(0)

2,866

1,250

1,449

28,908(119)

31,489

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasurements accumulated acquisitiondifference on
currencyof definedotherrightsavailable-for- translation
benefit plans comprehensive
sale securities adjustment
incomeBalance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance
Changes during period
Issuance of newsharesDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesIncrease by additionof newly
consolidated
subsidiary
Sales of shares of
consolidated
subsidiaries
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

(0)

(15)

1

(20)

(34)

49

Noncontrollinginterests

Total net
assets

1,422

30,061
-

(15)

1

(20)

(34)

49

1,422

30,06111(1,775)
4,626
(0)

3

0

31

26

(11)

45

43

209

299

31

26

(11)

45

43

209

3,165

15

27

(31)

11

93

1,631

33,226

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

2022 (Jan. 1 – Dec. 31, 2022)(Millions of yen)

Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance

Shareholders’ equity
Retained
Total shareholders’
Treasury shares
Capital stock Capital surplus
earnings
equity1,250
1,449
28,908(119)
31,489
1,250

1,449

63

63

28,908(119)

31,489Changes during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentSales of shares of consolidated
subsidiaries
Net changes in items other thanshareholders’ equity
Total changes during period

127(1,388)(1,388)

5,341

5,341

(8)

Balance at end of period

(8)

63

55

3,953

-

4,071

1,314

1,504

32,862(119)35,561

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasurements accumulated acquisitiondifference on
currencyof definedotherrightsavailable-for- translation
benefit plans comprehensive
sale securities adjustment
incomeBalance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance
Changes during period
Issuance of newsharesDividends of surplus
Profit attributable toowners of parent
Sales of shares of
consolidated
subsidiaries
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

15

27

(31)

11

93

Noncontrollinginterests

Total net
assets

1,631

33,226
-

15

27

(31)

11

93

1,631

33,226127(1,388)
5,341
(8)

(1)

12

(175)

(164)

(16)

78

(102)

(1)

12

(175)

(164)

(16)

78

3,969

14

40

(207)

(153)

76

1,710

37,195

12

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

(4) Consolidated Statement of Cash Flows(Millions of yen)2022
(Jan. 1 – Dec. 31, 2022)

2021(Jan. 1 – Dec. 31, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation

7,511

8,455

809

903

Impairment losses

15

28

Amortization of goodwill

112

495

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability

14

105

(9)

21

359

376

Interest and dividend income

(14)

(15)

Interest expenses

177

225

Loss on retirement of non-current assets

23

53

Loss on valuation of shares of subsidiaries and associates

253

322

Loss (gain) on extinguishment of tie-in shares
Decrease (increase) in trade receivables
Decrease (increase) in inventories

(42)

-

(2,448)(1,615)

(138)

(82)

(7,163)(12,075)

488

(692)

Increase (decrease) in accrued expenses

69

1,596

Increase (decrease) in advances received

985

(373)

Decrease (increase) in real estate for sale
Increase (decrease) in trade payables

Increase (decrease) in accrued consumption taxes

(836)

713

Increase (decrease) in other current liabilities

2,128

(153)

Other, net

311

(679)

Subtotal

2,608(2,388)10

11Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund

(179)

(221)

(1,983)(2,638)

913

472

1,370

(4,765)(1)(1)

Proceeds from withdrawal of time deposits

1

2

Purchase of property, plant and equipment(879)(1,670)Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Purchase of investments in non-consolidated subsidiary

(65)

(34)

(353)

(4,165)

(138)

(50)

Payments for acquisition of businesses

(65)

-

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits

Net decrease(increase) in lease and guarantee deposits

(119)

(51)

Loan advances
Proceeds from collection of loans receivable

(150)

(122)

156

13

Other, net

(165)

90

(1,782)(5,990)Net cash provided by (used in) investing activities

13

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

(Millions of yen)2022
(Jan. 1 – Dec. 31, 2022)

2021(Jan. 1 – Dec. 31, 2021)
Cash flows from financing activities
Proceeds from sale of shares of subsidiaries not resulting
in change in scope of consolidation
Net increase (decrease) in short-term borrowings

30

-

9,167

1,254

Proceeds from long-term borrowings

10,59524,583

Repayments of long-term borrowings(9,981)(9,316)

Repayments of lease obligations

(4)

(6)

Redemption of bonds

(15)

-

8

95

Proceeds from issuance of shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Repayments to non-controlling shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(0)-(1,775)(1,388)

(35)

(52)

-

(104)

7,990

15,06452

20

Net increase (decrease) in cash and cash equivalents

7,630

4,329

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries

22,81730,748

208

-

92

-

Cash and cash equivalents at end of period

30,74835,07814

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Changes in Accounting Policies
Application of the Accounting Standard for Revenue Recognition
World Holdings has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March
31, 2020) from the beginning of 2022. Based on this standard, revenue expected to be re ceived in exchange forthe provision of goods and services is recognized when the control of the promised goods and services istransferred to customers.
For the application of the revenue recognition accounting standard, in accordance with the transition al treatmentin the proviso to paragraph 84 of this standard, the cumulative effect of the retrospective application of the new
accounting standard, if it is applied prior to 2022, is added to or subtracted from retained earnings at the
beginning of 2022. The new standard is then applied beginning with this amount of retained earnings. However,World Holdings has applied the method prescribed in paragraph 86 of this standard and has not retrospectively
applied the new accounting policy to contracts in which almost all revenue were recognized in accordance withthe previous treatment prior to the beginning of 2022. In addition, due to the application of the method prescribedin paragraph 86-1 of the new standard, for contract revisions made prior to the beginning of 2022, an accounting
treatment based on all contract revisions is used. The cumulative effect is added to or subtracted from retained
earnings at the beginning of 2022.
The effect of this change on profit in 2022 is insignificant. There is no cumulative effect of the application of thisstandard on retained earnings at the beginning of 2022.
Furthermore, in accordance with the transitional treatment prescribed in paragraph 89-3 of this standard, World
Holdings has not presented information on revenue from contracts with customers broken down for 2021.
Application of the Accounting Standard for Fair Value Measurement
World Holdings has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July4, 2019) from the beginning of 2022, and has applied the new accounting policies set forth by the AccountingStandard for Fair Value Measurement prospectively in accordance with the transitional treatment in the paragraph
19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No. 10, July 4, 2019).
There is no effect of the application of these standards on the consolidated financial statements.
Segment and Other Information
Segment Information
1. Overview of reportable segments
Segments used for financial reporting are the constituent units for which separate financial information isavailable and for which the Board of Directors performs periodic studies for the purposes of determin ing theallocation of resources and evaluating performance.
In 2022, World Holdings revised reportable segments as follows. In previous years, the reportable segments were
Factory Staffing, Technology Staffing, R&D Staffing, Sales & Marketing Staffing, Real Estate, and Information
and Telecommunications. Based on the goal of making services another major business category in addition to thecurrent core manufacturing category, the Human Resources and Education Business is now divided into two
sectors. Products Human Resources Business is staffing services mainly for manufacturing and Services Human
Resources Business is staffing services mainly for the service sector. Other Businesses has been renamed theAgricultural Park Business. This business operates large nature parks for the purpose of making a significant
contribution to society regarding the environment.
Segment information for 2021 is shown based on the segment classification after the change.

15

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

Overview of each business segment is as follows.
(1) Products Human Resources Business: Subcontracting and outsourcing, temporary staffing services,manufacturing, R&D, technology development, software and system designs and development, constructionengineering, repair of digital equipment, clinical research outsourcing(2) Services Human Resources Business: Subcontracting and outsourcing, temporary staffing services, logistics,
sales activities involving direct customer interaction, tourism, call centers(3) Real Estate Business: Sale of condominiums, condominium and building management, sale of residentialbuilding sites, renovations, real estate brokerage services, rental property management,
manufacture/sale/rental of prefabricated houses(4) Information and Telecommunications Business: Operations of mobile phone stores, provision of solutions
for corporate clients, operation of call centers(5) Agricultural Park Business: Management and operation of Agricultural Park
2. Calculation methods for net sales, profit or loss, assets, and other items for each reportable segment
The accounting methods for reportable segments are the same as those used for preparing the consolidated
financial statements.
Profits for reportable business segments are operating profit figures.
Inter-segment sales and transfers are based on market prices.
3. Information related to net sales, profit or loss, assets and other items for each reportable segment
2021 (Jan. 1 – Dec. 31, 2021)

Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers
Total
Segment profit(loss)
Segment assets(Millions of yen)
Reportable segment
Information
Real EstateandBusiness
Telecommunications
Business

Adjustments(Note 1)

Amounts shownon consolidated
financialstatements(Note 2)

154,704-

154,704

11

770

(770)

-

9,385

3,378

155,475(770)

154,704

2,977

118

(20)

7,076

405

7,481

12,56251,473

3,318

2,908

88,905

8,363

97,269

68

9

451

40

148

718

90

809

70

7

-

34

-

112

-

112

-

-

-

15

-

15

-

15

83

6

508

17

131

746

255

1,001

Products
Human
Resources
Business

Services
Human
Resources
Business

70,66734,32436,977

9,367

3,367

543

186

10

18

71,21034,511

36,988

3,088

912

18,642Agricultural
Park
Business

Subtotal

Other items
Depreciation
Amortizationof goodwill
Impairment
loss
Increase inproperty, plantand equipment
and intangible
assets

Notes:

1. Contents of adjustments are as follows.
(1) The 405 million yen adjustment to segment profit includes elimination for inter-segment transactions of 30
million yen, and 374 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable
to any of the reportable segments.
(2) The 8,363 million yen adjustment to segment assets is corporate assets that are not allocated to any of thereportable segments. Corporate assets mainly consist of the Company’s surplus funds (cash and deposits).
(3) The 90 million yen adjustment to depreciation is related to corporate assets that are not allocated to any of thereportable segments.
(4) The 255 million yen adjustment to increase in property, plant and equipment and intangible assets is capital
expenditures that are not allocated to any of the reportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the c onsolidated statement of income.

16

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

2022 (Jan. 1 – Dec. 31, 2022)

Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers
Total
Segment profit
Segment assets(Millions of yen)
Reportable segment
Information
Real EstateandBusiness
Telecommunications
Business

Adjustments(Note 1)

Amounts shownon consolidated
financialstatements(Note 2)

183,640-

183,640

19

903

(903)

-

8,464
125
3,121

4,334
158
3,019

184,543
8,644
114,130

(903)
284
9,460

183,640
8,929
123,591

509

35

149

795

114

909

286

-

30

-

495

-

495

-

-

-

28

-

28

-

28

100

22

1,277

14

142

1,557

260

1,817

Products
Human
Resources
Business

Services
Human
Resources
Business

88,59844,282

38,044

8,399

4,314

565

178

74

64

89,164
4,054
28,961

44,4601,125
13,294

38,1193,181
65,734

64

36

178

Agricultural
Park
Business

Subtotal

Other items
Depreciation
Amortizationof goodwill
Impairment
loss
Increase inproperty, plantand equipment
and intangible
assets

Notes:

1. Contents of adjustments are as follows.
(1) The 284 million yen adjustment to segment profit includes elimination for inter-segment transactions of -120
million yen, and 404 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable
to any of the reportable segments.
(2) The 9,460 million yen adjustment to segment assets is corporate assets that are not allocated to any of thereportable segments. Corporate assets mainly consist of the Company’s surplus funds (cash and deposits).
(3) The 114 million yen adjustment to depreciation is related to corporate assets that are not allocated to any of
the reportable segments.
(4) The 260 million yen adjustment to increase in property, plant and equipment and intangible assets is capital
expenditures that are not allocated to any of the reportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statement of income.

17

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2022

Per-share Information
(Yen)
2022
(Jan. 1 – Dec. 31, 2022)

2021(Jan. 1 – Dec. 31, 2021)
Net assets per share

1,803.96

2,019.89

Net income per share

265.02305.50

Diluted net income per share

263.19303.82

Note: Basis for the calculation of net income per share and diluted net income per share is as follows:
2021(Jan. 1 – Dec. 31, 2021)

2022(Jan. 1 – Dec. 31, 2022)

Net income per share
Profit attributable to owners of parent (Millions of yen)

4,626

5,341

-

-

4,626

5,341

17,456,325

17,484,077--

Increase in number of common stock (Shares)

121,494

96,935[of which share acquisition rights (Shares)][121,494][96,935]--

Amount not attributable to common shareholders(Millions of yen)
Profit attributable to owners of parent applicable tocommon stock (Millions of yen)
Average number of common stock outstanding during theperiod (Shares)
Diluted net income per share
Adjustment to profit attributable to owners of parent(Millions of yen)

Summary of potentially dilutive shares not included in thecalculation of diluted net income per share due to theiranti-dilutive effect

Subsequent Events
Not applicable.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

18