FY2015 Second Quarter Financial Results

August 18, 2015 (Tue.)WORLD HOLDINGS CO., LTD.
JASDAQ (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Intensive Measures in 2015 and Their Progress
Human resources and education businesses

Investment concentrated on recruitment

Shared measures
Factory business

Expansion of the
distribution sector

Rationalization of contract
conditions, etc.

Creation of new employment
opportunities

Technology business

Expansion of thebusiness field

Personnel development

Further investment in the
repair section

R&D business

To receive more orders forclinical trials from companies

Expansion of the PV
business

To receive more orders forclinical researches

Sales & marketingbusiness

Expansion of thebusiness field

Optimal utilization ofregistered personnelInternal expansion ofdispersed transactions

Real estate business
Further distribution of portfolios

Start of the sale of the first real estate in
the Kinki region

Nationwide promotion

Information and telecommunications businesses
Differentiation from competitors

To stop depending on the sale ofcell phones

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

To sell more cell phones

1

I. Summary of FY2015 Second Quarter Financial Results
II. FY2015 Business Forecasts
III. Future Activities
IV. Shareholder Returns

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

2

I. Summary of FY2015 Second Quarter Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

3Second Quarter Summary
 Sales, operating income, ordinary income, and net income reached the record high.
 The operating income, ordinary income, and net income for the first half of 2015 exceed those for the fullyear results for 2014.
 Sales have been increasing for 6 consecutive terms since the 2nd quarter of 2010, while profits have been
growing for 3 consecutive terms since the 2nd quarter of 2013.
Unit : Million yen, %Pct. Change

FY2015 Forecast
for 2Q(cumulative)*

52,866 18,842

55.4

52,268

1.1

4,484

2,659

145.8

3,689

21.6

3,722

4,464

2,668

148.6

3,659

22.0

1,992

3,106

2,130

218.3

2,579

20.4

FY2014/2Q
actual

FY2014
actual

34,023

68,829Operating income

1,824

3,748

Ordinary income

1,795
976

Net sales

Net income

FY2015/2Q
actualYoY
Change2Q cumulativ ef orecast Pct.
Change*Announced on May 7, 2015

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

4Sales by Business Segment
 Significant increase in sales and profit for human resources and education business and real estatebusiness.
FY2014/2Q
actual*Unit: Million yen, %Net sales

Factory business

Segment income
Prof it margin
Net sales

Technology business

Segment income
Prof it marginHuman
resources andeducationbusiness

Net sales

R&D business

Segment income
Prof it margin
Net sales

Sales & Marketingbusiness

Segment income
Prof it margin
Net sales

OthersSegment income
Prof it margin
Net sales

Real estatebusiness
Information &telecommunications
business

Real estate business

Segment income
Prof it margin

Inform ation &telecom m unications
business

Net sales
Segment income
Prof it margin
Net sales

Total

11,744915

Pct. Change

1,466

12.5

13,385

46.2

10

1.1

1,016

42.2

FY2015/2Q actual
Change13,210925

Progress rate

FY 2015
Forecast f or 2Q(cumulativ e)**

YoY

tow ards FY2015
cumulativ e
forecast

7.8%

7.0%

－

－

7.6%

4,149

499

12.0

4,547

－
50.2

291

4,648
512

220

75.6

368

66.6

7.0%

11.0%

－

－

8.1%

1,960

15.9

2,292

－
46.8

32

2,271
265

311
232

724.5

221

59.2

1.6%

11.7%

－

－

9.6%

1,212

43.8

1,746

－
42.5

19

1,743
95

530
75

389.9

27

56.4

1.6%

5.5%

－

－

1.6%

312

(91)

(29)

278

－
34.8

(13)

(67)

3

35.3

20

221
6

6.5%

3.0%

－

－

1.4%

7,252

16,983234.2

23,434

－
82.7

815

24,235
3,372

2,557

313.7

2,820

131.9

11.2%

13.9%

－

－

12.0%

7,391

(12)

6,585

－
59.5

235

6,535
(22)

(856)
(258)

－

3.2%

－

－

－

34,023

18,842

55

△38

－
2,659

－

(729)

145.8

3,689

－

－

Elimination or corporate(505)

Operating income

1,824

52,866(670)
4,484

Operating margin

5.4%

8.5%

－

52,268

－
－
60
－
95.4
－

* In association with segment change, the results for FY 2014 was rearranged based on the new standard.
**Announced on May 7, 2015

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved5Factory Business<< Sales composition by business segment and the number of staff >>The brand as a top company attracted various requests fromvarious enterprises, and so sales have been healthy.
The electric, electronic, and semiconductor segments havebeen growing, thanks to the favorable performance ofsmartphone-related businesses.

Sales composition by business segment (%)(Million yen)

14,00011,744

11,200

23.0%
2.9%
5.7%
8.8%
9.2%
13.9%
13.6%

8,400

Factory

5,600

・Customer situation ・・・・・・ The number of customers is increasing
steadily. (up 8.3% from the same period of the previous year)
・No. of back orders: over 1,000
・Ratio of undertaking: over 50%
・Recruitment situation ・・・ The number of workers has increased, but it isstill not sufficient. The number of workers registered via “JOB PAPER(http://www.jobpaper.net/)” has steadily increased.

2,800

22.9%

0

2014 2Q

Electrical & electronics
Automobiles

Logistics
Environment & Energy

Machinery
Chemicals

13,210

YoY(Based on monetaryamount)

20.6%
5.1%
5.5%
7.7%
9.9%

＋102.8％＋2.3％＋25.9％

13.8%＋16.0％＋13.4％

14.1%＋20.9％

23.3%＋18.3％

2015 2Q

Semiconductors
Others* The graph indicates domestic sales excluding Taiwan

Variation in the number of staff (3-month average)(Persons)

10,000Logistics section
・ Customer situation ・・・・・ Thanks to the 2-year accumulation of know-how
and experience, the needs for long-term contracts increased in the
distribution field, where short-term contracts have been dominant. Thissection is growing steadily as the second pillar in the factory business.

7,698

7,768

7,674

994
718

1,263
717

1,370
662

1,211

5,513

5,566

5,718

5,736

5,839

2014 2Q

2014 3Q

2014 4Q

2015 1Q

2015 2Q

8,000

6,887

7,121

7,278

6,000

776
766

885
723

5,345

2014 1Q

624

4,000
2,000
0

Number of staff

Segment change adjustment

Average other companies/acceptance* The number of staff is a three-month average, external staff members accepted from other companies areincluded* Number of staff includes only staff members who are engaged in on-site operational work.

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6Technology Business<< Sales composition by business segment and the number of staff >>Information & Telecommunications Service field showed growth.
(design development engineering)
Semiconductors field grew rapidly (manufacturing technology
engineering)

Design and development
・Customer situation: Through negotiations, we increased business partners
with favorable conditions (improving costs)
・Recruitment situation: The job vacancies for new graduates increased(about 3 times from the same period of the previous year)

Production technology

Sales composition by business segment (%)(Million yen)
YoY
(Based on monetaryamount)

4,648

5,000

4,149

3,750

21.8%

2,500

5.8%
5.7%
6.0%
16.4%

1,250

21.3%

44.3%

0

2014 2Q

Semiconductors

5.2%
5.7%
6.5%
15.9%

＋0.5%
＋12.2％＋21.1％
＋8.6％

45.4%

＋15.1％

2015 2Q

Information & Telecommunications

Constructions

Automobiles

Machinery

Others* Retroactive adjustments have been made for segment changes in the graph.

Transition in the number of staff (3-month average)(Persons)

・Customer situation: In cooperation with the factory section, we increased
clients mainly in the semiconductor field.

2,000
1,500

・Recruitment situation: The number of employees increased steadily (up128 from the same period of the previous year).

Repair section

1,000

1,470

1,500

1,552

1,569

191

203

213

215

217

600

616

628

658

658

634

651

659

679

694

777

2014 1Q

2014 2Q

2014 3Q

2014 4Q

2015 1Q

2015 2Q

500

・Customer situation: In cooperation with the distribution section, we
increased business partners.
・Expansion of target fields: By brushing up the skills of engineers, wediversified the products we can repair.

0

1,697

1,425

Production technology

Design development

219
701

Segment adjustments* The number of staff is a three-month average.
* Number of staff includes only staff members who are engaged in on-site operational work.

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7

R&D Business<< Sales composition by business segment and the number of staff >>

We actively engage in recruitment activities targeted at not only
new graduates, but also those who once joined othercompanies, but resigned soon.
The performance of DOT International has been healthy, as it
has received orders from the beginning of the term.

Sales composition by business segment (%)(Million yen)

2,500

1,960

2,000

48.8％

1,000

・Customer situation: To assign workers to more organizations for training.
Also for PV*, we increased business partners based on collaboration.
・Recruitment situation: Opened the website exclusively for recruiting R&D
personnel: “RD JOB PAPER (http://www.witc.co.jp/rd-jobpaper/),” on Jun.
12, in order to expand the population and promote collaborative
recruitment. The number of new graduates employed increased
considerably (up 160% from the same period of the previous year).

500
0

35.8％
2014 2Q
Pharmaceutical/biotechnology

・Customer situation: We have undertaken clinical trials for large companies
since the beginning of the term. The number of entrusted clinical researches
is increasing (up about 20 times from last year).
・Business tie-up: Expanded the resources through the business tie-up with
Clinical Trust Co., Ltd., dispelling the greatest concern.
By receiving orders collaboratively, we can deal with large-scaletransactions.

18.8％＋42.4％

43.0％

＋2.1％

38.2％

＋23.7％

2015 2Q
ChemicalClinicalVariation in the number of staff (3-month average)(Persons)

900

633

DOT

YoY
(Based on monetaryamount)

15.3％

1,500

R&D

2,271

671

686

666

69

70

68

69

618

597

655

2014 4Q

2015 1Q

2015 2Q

600

55

300

578

607

601

2014 1Q

2014 2Q

2014 3Q

0

730

676

R&D staff

75

DOT staff* The number of staff is a three-month average. Number of staff includes only staff members who are engaged
in on-site operational work.
* PV＝Abbreviation of Pharmacovigilance
To appropriately and swiftly collect and analyze safety information, such as the side effects of pharmaceuticalproducts.

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8

Sales and Marketing Business<< Sales composition by business segment and the number of staff >>CB (dispatching sales staff) business: Significant profit improvement
OCS (dispatching operators to places such as call centers) business:
Its performance has been healthy since the launch of this businesslast year.

Sales composition by business segment (%)(Million yen)

2,000
1,500

1,212

・Customer situation: We targeted not only brands, but also massretailers, etc.

39.2%

＋195.8％

60.8%

＋8.1％

19.1%

1,000

CB

YoY
(Based on monetaryamount)

1,743

500

80.9%

0

2014 2Q

・Recruitment situation: As customers have changed, employment
opportunities are increasing.

CB

OCS

2015 2Q

Variation in the number of staff (3-month average)

OCS(Persons)

1,500

・Customer situation: Customers are increasing steadily. (The numberof transactions increased 120% from the same period of the previous
year.)

1,174
1,000

・Recruitment situation: Both the number of registrations and thenumber of recruitments have been healthy.

500

・System development: We are increasing and training proper staff
who can deal with large projects.

0

1,007

910

929

210

308

388

621

619

700

2014 1Q

2014 2Q

1,248

2014 3Q
CB

467

560

707

688

2014 4Q

2015 1Q

1,336
616

720

2015 2Q

OCS* The number of staff is a three-month average.
* Number of staff includes only staff members who are engaged in on-site operational work.

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9Real Estate Business<< Sales and sales composition by business segment, the numbers of units supplied and to be transferred>>The sale of apartments has been healthy in both the Tokyo
Metropolitan Area and the Tohoku region. In addition, the realestate developed by our company, etc., contributed.
The renovation business by Mikuni Sangyo Co., Ltd., which
joined our corporate group in this term, has been healthy.

Situation of activities
・Procurement: 13 pieces of real estate (9 pieces in the Tokyo Metropolitan Area,
3 pieces in the Tohoku region, and 1 piece in the Kansai region)

Sales composition by business segment (%)(Million yen)

25,00015.3%

15,000Renovation-related

10,000

7,252

3.2%

5,000

84.7%
＋192.5％96.8%

02014 2Q

2015 2Q

Development-related

Renovation-rerated* Renovation is newly included from the 4Q of FY 2014, in association with acquiring Mikuni Sangyo Co., Ltd.
as a subsidiary.

Number of supplied and un-transferred properties(No. of properties)

400

Un-transferred properties

Supplied properties

307.9

300

【Advantages in procurement】

203.9

Land coordination

200

162.5

2

128

Adjustment of entitlements

M&A＋1480.0％

20,000・Supply: 33 units (33 units in the Kansai region)
・Transfer: Apartments: 275.9 units (93.9 units in the Tokyo Metropolitan Area,
182 units in the Tohoku region)
Lot sale: 1 lot (in the Tokyo Metropolitan Area)
Brokerage: 15 pieces (5 pieces in the Tokyo Metropolitan Area, 10 pieces in
the Tohoku region)
Land: 6 pieces (in the Tokyo Metropolitan Area)

Original marketing

・Prefabricated house business: production and sale of prefabricated houses
・Entry to the rental business field: rental of prefabricated houses

24

100
38

0

(announced on Aug. 6)

YoY(Based on monetaryamount)24,235

104

38

103

70
33

158.9

188

151

92

175.9

160.5 158.9
92132318.4579.9

130.452014 2Q 2014 3Q 2014 4Q 2015 1Q 2015 2Q 2014 2Q 2014 3Q 2014 4Q 2015 1Q 2015 2Q

Sale of newly built houses

Detached houses

Renovation* The supplied properties were included at the time when their sales began. The un-transferred properties
include the already-contracted ones. For JV projects, proportionally distributed number was used.

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10Information & Telecommunications Business<<Variations in sales and the number of stores>> We actively conduct scrapping & building, and develop
stores liked by carriers and customers.
 We cultivate new needs with the original shop
“Window for Cell Phones.”

For individuals

Sales for each target[million yen]

8,000

7,391
9.1%

6,000

6,535

YoY
(Based on monetaryamount)8.3%△20.0％

91.7%△10.8％

4,000

・Cell phone shops: To enhance scrapping & building
To close unprofitable shops
・Development of new business models (Window for Cell Phones)
Two shops opened in Mar. and one shop opened in Apr.
・ Provision of information on how to utilize cell phones
・ Purchase and sale of used cell phones
・ Planning of the sale of products of MVNO*

90.9%

2,000

0

2014 2Q
Individual

2015 2Q
Corporation

For corporations
・We enhanced the sale of LEDs, OA devices, etc. to corporations.
The sales volume of LEDs increased 364% from the same period of
the previous year.
・Market environment: Fluorescent and incandescent lamps are to bediscontinued in 2017. All lamps will be replaced by LEDs.
※MVNO＝Abbreviation of Mobile Virtual Network Operator
Operators that rent the lines for mobile communications, and offer their services as their brands.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

11Changes in Operating Income by Segment
HR/Education
business(Million yen)

4,000

Other
20

3,500

S&M
19

3,000

R&D
32

2,500

1,500
1,000
500

1,279

Up 41.2%(Million yen)

(Million yen)

4,000

4,000
3,372

Other
6

3,500

S&M
95

3,000

3,000

2,500

2,500

1,804

2,000

Information &Telecommunications

Real estate

R&D 265

2,000

3,500

2,000

Up 313.7%

1,500

1,500

Technology

291

512

1,000

Factory

Factory

915

925

500

500

0

0

Technology

02014 2Q

2015 2Q

815

1,000
235
-22

2014 2Q

2015 2Q

2014 2Q

2015 2Q

2014 2Q

2015 2Q(500)

Units less than one million yen rounded down
S&M: Sales and Marketing* In association with segment change, the results for the 2Q for FY 2014 was rearranged
based on the new standard.

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12Financial Condition B/S The real estate for sale in process decreased, because of the completion and sale of real estate.
(Million yen)

Total assets

60,00045,00030,00046,087

46,773

41,60642,329

4,480

4,443

Current
assets42,329（+723）

・Increase in cash and deposits: 2,572 million yen
・Increase in notes receivable and accounts receivable due to sales growth:
537 million yen
・Decrease of real estate for sale in process: 3,098 million yen

15,0000

End of FY2014
End of FY2015 2Q
Fixed assets
Current assets(Million yen)

60,00045,00030,00015,0000Liabilities

Total liabilities/net
assets46,087

46,77329,032

29,271

・Decrease in accounts payable for realty businesses: 830 million yen
・Increase in short-term debt: 2,118 million yen
・Increase in long-term debt: 2,493 million yen

Net assets
8,627

6,246

8,426

11,25535,518（-2,142）

11,255（+2,828)• Increase in retained earnings: 2,712 million yen

End of FY2014
End of FY2015 2Q
Net assets Fixed liabilities Current liabilities

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13Cash flows
 Operating CF increased by 3,456 million yen, investment CF decreased by 421 million yen, andfinancial CF dropped by 767 million yen.
[million yen]

16,000Operating CF

Investment CF(421)

14,000・Quarterly net profit before taxes and otheradjustments: 4,925 million yen
・Decrease in real estate for sale: 2,770 million yen
・Increase in accrued expenses: 298 million yen
・Increase in accounts receivable: 536 million yen
・Decrease in accounts payable: 833 million yen
・Payment of income taxes, etc.: -1,226 million yen

(767)

3,456

12,00010,0008,000

Operating CF

Financial CF

Term-endbalance of
cash and cash
equivalents

Term-endbalance of
cash and cash
equivalents

13,0766,000

10,8044,000

Investment CF
・Expenditure for fixed-term deposits: -300 million yen
・Income from the collection of loans: 293 million yen
・Expenditure due to the acquisition of property, plant andequipment: -90 million yen
・Expenditure due to the acquisition of intangible fixed
assets: -160 million yen
・Expenditure due to lending: -214 million yen

Financial CF

2,000・Net increase in short-term debt: 255 million yen
・Income from long-term borrowing: 2,572 million yen
・Expenditure due to the repayment of long-term debts:-3,202 million yen
・Payment of dividends: -386 million yen+2,272 million yen

0

End of 12/2014

Operating

Investment

Financial

End of 6/2015

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14II. FY2015 Business Forecasts

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15

Summary of FY2015 Business Forecasts
 Both operating income and ordinary income will significantly exceed the original forecast.
 Both sales and each profit will mark the record high.

FY2014 Actual
Unit: Million yen, %Net sales

68,829Operating income

3,748

Ordinary income

3,722

Net income

1,992

EPS (yen)

118.5

Dividend per share (yen)23.7

FY2015
Forecast*

Change from forecast
Change87,752 18,922
951
4,700
901
4,624
3,445 1,453
206.21
41.3

Pct. Change

27.5
25.4
24.2
73.0

87.7

-

17.6

-

* Announced on May 7, 2015

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

16

Business Forecasts by Segment
Unit: Million yen, %24,928Net sales

Factory business

Segment income

1,918

Profit margin

7.7%
8,430

Net sales

Technology business

Human
ResourcesandEducationbusiness

Segment income
Profit margin
Net sales

R&D business

Segment income
Profit margin
Net sales

Sales & Marketingbusiness

Segment income
Profit margin
Net sales

Other

Segment income
Profit margin
Net salesRealEstatebusiness

Real estate businessInformation &Telecommuni
cationsbusiness

Information &Telecommunicatoin
business

Segment income
Profit margin
Net sales
Segment income
Profit margin
Net sales

Total

FY2015
Forecast*

FY2014
ActualElimination or corporate

Operating income

Operating margin

699
8.3%
4,062
159
3.9%
2,679
72
2.7%
574
18
3.2%
15,545
1,869
12.0%
12,608172
1.4%
68,829(1,162)
3,748
5.4%

Change f rom f orecast

Change28,597
2,196
7.7%
9,260
769
8.3%
4,850
447
9.2%
4,100
169
4.1%
636
18
2.9%
29,321
2,557
8.7%
10,9872
0.0%
87,752(1,459)4,700
5.4%

Pct. Change

3,668

14.7

277

14.5

－

－

830

9.8

70

10.1

－

－

787

19.4

287

179.9

－

－

1,420

53.0

96

131.6

－

－

61

10.7

0

2.8

－

－

13,775

88.6

687

36.8

－

－

(1621)

(13)

(170)

(99)

－

－

18,922

27.5

－

－

951

25.4

－

－

* Announced on May 7, 2015

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17III. Future Activities

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved18

1. Industrial and Market Trends (1) Environment Surrounding “Human
Resources and Education Businesses”

Amendment to “the Worker Dispatch Law” ** A bill for partially amending the law for securing the appropriate operation of worker dispatch business and protecting dispatched workers, etc.

Purposes of the amendment
Promotion of the use ofworker dispatch systems

Economic
vitalization
Stabilization of the positionsof dispatched workers

Employment
stabilization

Current situation

Proposal for revisions● Regulations based on 26
specialized business categories● The dispatched worker
employment period is up to 3 years
for each “business category.”● General dispatch based on thesystem of approvals and licenses
Special dispatch based on the
notification system● Abolishment of the 26 specializedbusiness categories● The dispatched worker employment
period is up to 3 years for each “person.”● General dispatch based on the system ofapprovals and licenses, for all cases* New criteria for approval
Reference asset amount: 20 million yen × No. ofbusiness establishments
Cash on hand and at banks: 15 million yen × No.
of business establishments

Competitions are getting fierce, energizing the market.
Favorable effects on our company
As a leading company in the business field, we make efforts to improve the value of the field of human resources by engaging in our business activities
while being deeply aware of the social impact of our businesses..

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1. Industrial and Market Trends (2) Environment Surrounding the “RealEstate Business”
Ministry of Land, Infrastructure, Transport and Tourism:
Round table for energizing the used housing market

Current
marketsituation

Background

Awareness of problems• The number of households reached apeak in 2015, and has been decreasing.
• Problem of the increase of vacant housesin the countryside• The augmentation in the ratio of housing
cost among young people is a factor in the
decline in birthrate.

• Due to the age depreciation of buildings, appraised asset value
became much lower than investment amount.
(Example: a household of over 2 residents aged over 50 has an unrealized loss of 20 million yen on average.)Market trend in the Tokyo
Metropolitan Area
As Tokyo Olympics andParalympics are to be held in
2020,• The ratio of existing houses to total housing distribution amount islow. (Example: 13.5% in Japan; 70-90% in Europe and the U.S.)

Land and construction cost are
skyrocketing
Governmental
measures

Governmental
goals

Improvement inbuilding evaluationand diffusion in themarketTo develop an
environment for
Financial measures forpromoting theenergizing the used
increase of highhouse market
quality housing stocks
and their distribution

Vitalization of therental stand-alone
house market

Collaboration withlocal measures

To double the scale of the used house and remodeling market
10 trillion yen in 2010

The prices of new apartments
are now at the level first-timehouse buyers cannot afford tobuy.
Renovated used houses are
attracting attention.

20 trillion yen in 2020

The age in which the technology for avoiding risks to the maximum degree will cause gaps in competitivenessFavorable impact on our company
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved20

1. Industrial and Market Trends (3) Environment Surrounding “Information
and Telecommunications Businesses”● Decrease in the sales of cell phones at shops
As the demand for smartphones has been already satisfied, sales are sluggish, and the sales of low-cost smartphones are
growing. The sales promotion budget of carriers has been revised. (Reduction in cashback amount)● Outline and major advantages of MVNO
【Outline of MVNO】
3,500

Consumers

3,045[10,000 lines]

3,000
2,500

Rapid growth of
the MVNO market

Music
Websitebrowsing

2,000

SNS

Telephone

1,480

1,500

1,037
1,000
500

Video

254

379

MVNOs

643

0

2010/3 2011/3 2012/3 2013/3 2014/3 2015/3
Source: “Variation in the scale of the Japanese MVNO market” by MM
Research Institute

To offer various mobile
communications services
by utilizing the merits of
MVNOs.

To rent the infrastructure for wirelesscommunications

Major advantages of MVNO
● Price competitiveness(attractive charging system)● Diversity of services(a broad range of options)・Data communications-related
・Telephone-related● MNP (mobile number
portability) system
available

Mobile network operators※MVNO: Mobile Virtual Network Operator

Further growth due to the start of “SIM Free” on May 1, 2015
* The Ministry of Internal Affairs and Communications enacted the “Guidelines for SIM-unlocking.”

New business chances
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved21

2. Outline of the Midterm Managerial Plan (2014-2016)

Goal

Term ending Dec. 2016

We aim to become a corporate group that can achievesales of over 100 billion yen.

Basic strategies

Midterm managerial plan

● To inject managerial resources topromising fields● To increase profits rather thansales
● To pursue cooperation andsynergy in our corporate group

12/2014(Results)

12/2015(forecast)

12/2016(Goals for the last
fiscal year)

Sales

68.8 billion yen

87.7 billion yen 100 billion yen

Operatingincome3.7 billion yen

4.7 billion yen

5 billion yen

ROE

30.3％

28.5％

20.0％

Capital-to-asset
ratio

16.1％

23.0％

Over 25.0％

Payout ratio

20.0％

20.0％

Over 20.0％

We aim to develop an optimal portfolio for improving growthpotential and profitability further.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved22

3. Strategies for Each Segment (1) Human Resources and Education
Businesses■ Sales of “human resources and education businesses”

62 billion
yen

Main measures of the “human resources and education businesses”

Common measures for all businesses
Investment concentrated on
recruitment

47.4 billion
yenStrategies for expansion throughM&A

Factory business40.6 billion
yen

Full-scale entry to the automobile
industry

34.6 billion
32.5 billion yen
yen

Expansion of the distribution section

Technology businessTo increase transactions in theautomobile field

Training of repair engineers

Employee training by undertaking
more tasks

M&A strategies

R&D business2012/122013/12

2014/122015/122016/12

S&M

Others(forecast)

Personnel development at training
facilities

Increase of clinical trials for firms

Synergy of business tie-ups

Sales activities and recruitment
based on collaboration

Sales & marketing business(plan)

Diversification of businesses
Factory

Technology

R&D

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

Strengthening of the organization23

3. Strategies for Each Segment (1) Human Resources and Education
Businesses
To undertake tasks from local governments, from the viewpoint of social contribution
Primary objective is to increase the transactions among local firms, local employees, the employment ofgraduates from engineering school, the employment of engineers relocating from other regions, etc. toestablish the local foundation while contributing to local community by undertaking tasks from local governments.
Vitalizationof regional
industries
Personnel
developm
ent

Attraction of
nextgenerationindustries

500 job
seekers fromother regions

100 local
educational
institutions《To undertake tasks
from local
governments》

Job
creation

Local
administ
rationTo secureexcellent
personnel
working
outside theprefecture

800 local
firms

12,000 job
seekers inYouth Work
Plaza
Kitakyushu

Employme
nt in local
industries

To assist local governments
in dealing with the tasks theycannot do《Fukuoka Prefecture/City》

Major missions of local governments thatcan be supported in our business field

Advantages in regions where the projects
entrusted by local governments contribute toour business.

By utilizing these experiences and achievements, we have been entrusted with the project for
employing the victims of the disaster in Fukushima Prefecture.
The total number of employed workers from fiscal 2011 to fiscal 2015 is 13,459 (as of the end of Jun. 2015)

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved24

3. Strategies for Each Segment (2) Real Estate Business■ Sales of “real estate business”

Main measures of the “real estate business”
29.3 billion
yen 25.1 billion
yenCommon strategies
・Nationwide operation: Concentrated on the areas
where the economic power of citizens is strong
・Synergy and fusion between businesses with unstable
and stable incomes

Hokkaido

Kinki Area

Tohoku Area

Apartments
Stand-alone

Businesses
withunstable
incomes15.5 billion
yen

Land

Chugoku
RegionBusinesses
with stable
incomesRenovation
Brokerage

Kyushu Area

Management

Tokyo Metropolitan
Area

Chukyo Area

RentalDevelopment-related
8.6 billion
yen

Securing of appropriate business land

Appropriate commercialization

Renovation-related
Customer targeting

1.5 billion
yen
2012/122013/12Development-related

2014/122015/12(forecast)Renovation-related

2016/12(plan)

Renovated houses

TopicsStrengthening of businesses with stable
incomes through M&A

Overseas business operation

OthersCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved25

3. Strategies for Each Segment (2) Real Estate Business
Acquisition of the shares of Ohmachi Co., Ltd. and Unitex Corporation
In order to make inroads into the “rental business” field for expanding our real estate business domain, we will acquire the shares ofOhmachi Co., Ltd., which has the 27-year experience of the prefabricated house business, and Unitex Corporation, which carries out
rental businesses. We will meet the growing demand for infrastructure, including the “Olympic demand.”《Expansion of our business field》

Prefabricated house business(unstable income)Renovation

Development• Production of prefabricated houses• Sale of prefabricated houses

Real estatebusiness
PrefabricatedhousesRentalRental business (stable income)

There are growth potentials inside and outside Japan, such as “Fundamental
Plan for National Resilience,” “Tokyo Olympics 2020,” simple-frame stores andhouses in Southeast Asia, whose economy is growing.

• Rental of prefabricated houses● Outline of Ohmachi Co., Ltd.
Business contents
Date of establishment● Outline of Unitex Corporation

Production and sale of prefabricated houses
Nov. 4, 2008
(The prefabricated house business began in Aug. 1988.)

Business contents
Date of establishment

Rental of prefabricated houses
Sale of used prefabricated houses
Aug. 29, 2001

Our products
The size of these prefabricatedhouses can be doubled or tripled at
the time of installation. The folding
method was adopted for easy
installation. There are nocompetitors that adopted this kindof folding method, and so we haveadvantages in the aspect oftransportation cost, too.

SP-2

SP-2W

Double-size
house（5.5 tsubo）

Double-size
house（5.5 tsubo）

SP-3
Triple-sizehouse（8.2 tsubo）

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

SP-3W
Triple-sizehouse（8.2 tsubo）

26

3. Strategies for Each Segment (3) Information and Telecommunications
Businesses■ Sales of “information andtelecommunications businesses”

Main measures of “information andtelecommunications businesses”

13 billion
13 billion
yen 12.6 billion
yenyen
11.6 billion
yen
10.9 billion
yen● To accelerate scrapping & building, and increase the number of
excellent shops.
● To enrich the original shop “Window for Cell Phones”
To handle low-cost SIM (entry to the MVNO market)
To purchase and sell used cell phones
To repair cell phones
To give lectures about cell phone operation, collecting fees.
● To strengthen the businesses targeted at corporations
To enhance the sales activities for LEDs, copiers, and cell
phonesWindow for solving any
troubles about smartphones
and cell phones● Accessories of cell phones● Purchase and sale of used cell phones● Repair of cell phones● Maintenance● Rental of cell phones● Lectures about cell phone operation
2012/122013/12

2014/122015/122016/12(forecast)(plan)

Information and telecommunications

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved27

4. Progress of the Midterm Managerial Plan
Sales [million yen]

Variation in sales and profits, including estimatedvalues, with the midterm managerial plan

120,000

Operating income [million yen]

6,000

Target sales (initial)
Actual/forecasted sales

100,000

5,000

Target operating income (initial)
Actual/forecasted operating income

80,0004,000

60,0003,000

40,0002,000

20,0001,000

0Target sales (initial)
Actual/forecasted sales
Target operating income (initial)
Actual/forecasted operating income

2012/1249,61153,0071,361
1,223

2013/1256,46156,4501,878
2,120

2014/1270,583
68,8292,720
3,748

2015/12(Est.)
84,94087,752
3,695
4,700

2016/12(Est.)
100,100
100,100
5,019
5,019

0

* Target sales (initial), target operating income (initial): Initial target values announced on Aug. 6, 2012
Actual and forecasted sales and operating incomes: The values for 12/2012 to 12/2014 are results, while the values for 12/2015 and 12/2016 are the latest forecasts.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved28

IV. Shareholder Returns

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved29

Shareholder Returns
Maintaining dividend increase in line with profit growth
Dividend per share

(yen)

45.0

* 41.3

40.0
35.0
30.0
23.7

25.0
20.0
15.0
8.5

10.0
5.0
0.0

4.5

4.5

4.5

FY2009FY2010FY2011FY201210.0

FY2013

FY2014FY2015
forecast*Announced on May 7, 2015
*The forecast and dividend estimates are based on the information that the Company currently has and a certain assumption that is
considered reasonable. There is a possibility that the actual results may largely differ based on various factors.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30For more information
Yukari Tsuda
Public Relations and Investor Relations Department
Corporate Planning Division
WORLD HOLDINGS CO., LTD.

TEL

03-3433-6005

E-MAILirinfo＠world-hd.co.jp

URL

http://www.world-hd.co.jp/

No information in this presentation is provided for the purpose of soliciting purchases or sales of World Holdings
stock. Furthermore, opinions, forecasts and other information not based on historical facts represent the judgmentsof World Holdings at the time this presentation was prepared. World Holdings does not guarantee the accuracy ofthis information and may revise this information at any time without prior notice. World Holdings and otherproviders of this information assume no responsibility whatsoever for any losses incurred in association with theinformation in this presentation.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved31