FY2020 Financial Results

Creating the Ways We Live
February 16, 2021 (Tue)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange(2429)

Table of Contents
I. Summary of FY2020 Financial Results
Summary of Financial Result
Overview of Business Results by Segment
Details of Each Segment
Financial Condition B/SCash Flows

… P4
… P5
… P6
… P15
… P16

II. Outlook for the Term Ending Dec. 2021 and Future Strategies
Future Outlook
FY2021 Business Forecast
FY2021 Factors for Increasing or Decreasing Operating Income
FY2021 Business Forecast by Segment
Future Strategies by Segment
Shareholder Returns

… P18
… P19
… P20
… P21
… P22
… P28

III. Appendix
Profile of World Holdings

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

… P29
2

I. Summary of FY2020 Financial Results3Summary of Financial Result⚫ Revenue and profit increased year-on-year despite the impact of COVID-19.
⚫ Strategic capital investments that accurately grasped customer needs increased revenue andprofit and contributed to the improvement in results in our mainstay Human Resources andEducation Business.
⚫ Recorded COVID-19-related subsidy of 417 million yen in non-operating income.
(Unit: Million yen)

Results forResults forthe term
Initialthe term
ended Dec. estimate ended Dec.
2019
2020

Against estimate
ChangePct.
ChangeYoY
ChangePct.
ChangeNet sales

136,319

142,558

143,571

1,012

0.7%

7,251

5.3%

Operating income

4,730

6,006

6,251

245

4.1%

1,520

32.1%

Ordinary income

4,805

6,365

6,786

421

6.6%

1,981

41.2%

Net income attributableto owners of parent

2,956

5,157

5,913

756

14.6%

2,956

100.0%

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

4Overview of Business Results by Segment
Results f or
the term
ended Dec.
2019

Factory Business

Human
ResourcesandEducation
Business

Technology
Business

R&D Business

Sales & Marketing
Business

Total (reference)
Real EstateBusiness

Real EstateBusiness

Information andTelecommunications
Business

Information andTelecommunications
Business

Other

OthersTotal

Net sales
Segment income(Profit margin)
Net sales
Segment income(Profit margin)
Net sales
Segment income(Profit margin)
Net sales
Segment income(Profit margin)
Net sales
Segment income(Profit margin)
Net sales
Segment income(Profit margin)
Net sales
Segment income(Profit margin)
Net sales
Segment income(Profit margin)
Net sales
Elimination or corporate

Operating income(Profit margin)

Results f or
the term
ended Dec.
2020

Initialestimate

Against estimate
Change50,001
2,679

54,394
2,603

55,102
2,632(5.4%)(4.8%)(4.8%)

16,902
1,761

16,9981,960

17,003
2,019(10.4%)(11.5%)(11.9%)

7,108
711

7,222
835

7,200
843

(10.0%)(11.6%)(11.7%)

3,761
27

4,005
51

3,835
18

(0.7%)(1.3%)(0.5%)

77,774
5,179

82,6205,451

83,142
5,515(6.7%)(6.6%)(6.6%)

42,082
1,460

47,713
3,369

48,0813,550(3.5%)(7.1%)(7.4%)

12,344
10

9,222
237

9,133
240

(0.1%)(2.6%)(2.6%)

4,118
132

3,002
-339

3,214
-200

(3.2%)－－

136,319-2,052
4,730

142,558-2,711
6,006

143,571-2,8546,251(3.5%)(4.2%)(4.4%)

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

Pct. Change

YoY
ChangePct. Change

708
29

1.3%
1.1%

5,101
-46

10.2%
-1.7%

5
58

0.0%
3.0%

100
258

0.6%
14.7%

-21
8

-0.3%
1.0%

92
132

1.3%
18.6%

-170
-33

-4.2%
-64.2%

74-8

2.0%-32.5%

521
63

0.6%
1.2%

5,368
335

6.9%
6.5%

368
180

0.8%
5.4%

5,998
2,089

14.3%
143.1%

-89
3

-1.0%
1.4%

-3,210-26.0%
229 2,097.3%

212
139

7.1%
－

-904
-332

-22.0%
－

1,012
-142
244

0.7%
－
4.1%

7,251
-801
1,520

5.3%
－
32.1%
5

<Composition Ratio of Sales and Segment Income of Human Resources Segment> HR⚫ Despite the impact of COVID-19, revenue and profit increased by responding to a wide range ofindustries.
⚫ Past strategic investments (including in human resource development) have led to an improvement andshift up in skills. Realizing an increase in the unit price has contributed to an increase in profit.
⚫ We aim to differentiate our services by offering cross-sectional “seamless” technologies.

◆Sales composition◆Segment income

Up 6.9%(Million yen)

83,142

82,62080,00077,774

4.8%
8.7%

4.8%
9.1%

60,000Up 0.6%

4.6%
8.7%
20.5%

20.6%

YoY
(Based on
monetary
amount)

+2.0%
+1.3%

Including the COVID-19 subsidy(Million yen)

6,000

Up 6.5%
5,451

5,179

0.9%
15.3%

0.5%
13.7%

+0.6%

21.7%

Up 13.0%, 5,852
Up
1.2%

5,515
0.3%
15.3%

4,000
34.0%

36.0%

36.6%

51.8%

47.8%

47.8%

40,000
66.2%

65.9%

64.4%

+10.2%

2,000

20,0000
2019/12actualFactory0

2020/12estimate

Technology

R&D

2019/12actualSales & Marketing

2020/12actualFactory

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

estimate

Technology

R&D

actualSales & Marketing6

<The Number of Staff Members of Overall Human Resources Segment>

HR

Factory Business increased significantly.
⚫ The number of enrollments increased significantly due to the cultivation of new logistics-related bases.
⚫ In addition, 5G-related business was strong and semiconductor/machine-related business also
increased.

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

Recordhigh

30,00027,54325,00019,88920,00015,000

1,261
1,005
2,472

20,70320,704

1,362
1,093
2,639

1,513
1,074
2,654

22,124

21,645
1,701
1,045
2,634

19,887
1,543
1,028
2,655

1,514
1,091
2,880

23,099
1,437
1,095
2,925

1,541
1,120
2,778

22,103

10,00015,151

15,60915,463

16,266

2019/1Q

2019/2Q

2019/3Q

2019/12

14,661

16,63917,642

2020/2Q

2020/3Q

5,000
0Factory

Technology

2020/1Q

R&D

2020/12

Sales & Marketing

The number of staff in the Factory Business includes external staff
members accepted from other companies.
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

7Factory BusinessHR⚫ New business projects decreased compared to our target due to COVID-19, so both sales and profit
were sluggish. Nevertheless, 5G-related and logistics-related businesses were strong, so revenue
increased while profit decreased.
⚫ As there is an upward trend of businesses related to semiconductors and machinery, including the 5Grelated businesses, we conducted upfront investment in recruitment.
⚫ We also conducted upfront investment in order to deal with orders from new distribution centers.
◆Sales composition◆Segment income
YoY(Based on
monetary
amount)Up 10.2%(Million yen)

60,00054,39450,00150,00055,102Up
1.3% 16.1%

17.2%

40,000

3.0%
5.2%

12.9%

30,000◆Variation in the number of staff (3-month average)*

Including the COVID-19 subsidy(Million yen)

Up 3.3%, 2,767

3,500*Parentheses signify the
number of new employees.

25,00022,103[286]

Down 1.7%
+3.0%

3,000

3.0%
5.9%

+7.8%
+26.7%

2,500

12.0%
2.7%

+2.6%
-26.6%

2,000

40.2%

+15.3%

2,679

Up 1.1%

2,603

2,632

20,00016,266
[274]

7,496

5,017

1,156

15,0004.1%

1,500
20,000(Persons)

38.4%

10,0001,000

13,451

5,000

10,000
20.1%

19.2%

+15.4%

0
2019/12actualElectric & Electronics
Semiconductors
Others

1,077

Logistics
Machinery500
02020/12estimate

actual10,172

2019/12actual02020/12estimate
actualAutomobiles
Environment & Energy*We have not disclosed the sales estimate by segment.
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

2019/122020/12

Other companies/acceptance
Entrusted by overseas and government office
Number of staff*The number of staff is a three-month average. External staff
members accepted from other companies are included.
*Number of staff included only staff members who are engaged
in on-site operation work.

8Technology BusinessHR⚫ Due to COVID-19, the number of transactions fell below the initial estimate, so utilization rate declined
temporarily, and costs augmented.
⚫ Human resource development led to the enhanced performance, and revenue and profit exceeded theestimate.
⚫ We concentrated on the recruitment of experienced workers, and implemented new training programsfor brushing up skills of human resources including existing employees and shifting up a gear.
◆Sales composition(Million yen)

◆Segment income
YoY(Based on
monetary
amount)Up 0.6%20,00016,902
15,00017,003

16,99825.0%

Including the COVID-19 subsidy

Up 23.4%, 2,173
2,500

25.1%

+4.1%

10.1%

+19.2%

8.4%
4.7%

8.7%
4.5%

+2.2%
-5.9%

1,500

19.3%

20.5%

+5.0%

1,000

31.1%

-10.4%(Persons)

3,000

Up 14.7%
Up
3.0%*Parentheses signify the
number of new employees.

2,634
[175]
402

2,019

1,960

2,000

1,761

8.4%

10,000(Million yen)

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

2,778
[180]
480

2,000

1,535

1,509

1,000

5,000
34.2%

0

500
697

0
2019/12actualSemiconductors
Machinery
Construction technology

2020/12estimate

2019/12actualactual2020/12estimate
actualInformation and telecommunications service
Automobiles
Others*We have not disclosed the sales estimate by segment.
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

790

0
2019/122020/12Construction, repair and other technology
Design development
Production technology*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged
in on-site operation work.

9

R&D BusinessHR⚫ The number of projects in the CRO Department decreased due to COVID-19. Nevertheless, theengineer dispatching department performed well, so revenue and profit increased.
⚫ As transactions are increasing thanks to fine-tuned marketing, we conducted upfront investment inrecruitment.
⚫ Since we have a human resource development system based on the joint research laboratories withaffiliated colleges, including the University of Tokyo, Kyoto University, Osaka University, and Tokyo
Metropolitan University, the population for employment increased.
◆Sales composition(Million yen)

◆Segment income

Up 1.3%
7,108

7,222

12.4%

Down
0.3%

Up 21.9%, 867

Up 18.6%

7.5%

7,200
9.7%

-20.3%

7.8%

+6.1%

43.2%

+10.8%◆Variation in the number of staff (3-month average)*

Including the COVID-19 subsidy(Million yen)

1,000

8,000

6,000

YoY
(Based on
monetary
amount)835
800

Up 1.0%

843

711

4,000

1,200
1,000

*Parentheses signify the
number of new employees.

1,045
[96]

1,120
[84]
70

93

800

600
39.5%

(Persons)

600
931

400

1,050

400

2,000
39.2%

40.7%

0
2019/12actualPharmaceutical/biotechnology

ChemicalClinical

200

200
0

0

2020/12estimate-2.2%

actual2019/12actual2020/12estimate

actual2019/12
R&D staff

CRO*We have not disclosed the sales estimate by segment.
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

2020/12
DOT staff*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged
in on-site operation work.

10

Sales & Marketing BusinessHR⚫ Past structural reforms were successful, so the business of light work, large supermarkets, call centers,
etc. was favorable.
⚫ On the other hand, profit greatly decreased due to the impact from COVID-19 on the tourism industry.
⚫ The number of staff dropped, due to the decrease of apparel-related transactions.

◆Sales composition◆Segment income◆Variation in the number of staff (3-month average)*
Including the COVID-19 subsidy(Million yen)

(Million yen)

Up 2.0%Up 61.4%, 44

150
4,000

3,761

4,005

(Persons)

2,000
Down 32.5%

Down 3,835
4.2% 1.2%

1,701
1,541

100

Down 64.2%

1,500

51

3,000
50

27

18
1,000

2,000

98.8%

100.0%

1,000

0
500

-50

-100

0
2019/12actual2019/122020/12estimate

Light work/GMS/Call Centers

actualTourism

actual02020/12estimate

Light work/GMS/Call Centers

actual2019/122020/12

Tourism

Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged
in on-site operation work.

11Real Estate Business

RealEstate⚫ The number of units delivered in renovation-related business fell due to COVID-19. Despite this, deliveryof commercial premises in development-related business was mostly as targeted, so revenue and profit
increased.
⚫ While maintaining a cautious stance in relation to procurement, we worked on building a real-estate
finance business structure. At the same time, we established a commitment line and secured funds toprepare for a favorable market trend in the next term onward.
◆Sales composition◆Segment income
Up 14.3%(Million yen)

60,000Up 0.8%47,71350,00048,081

YoY(Based on
monetary
amount)Up 145.0%, 3,577
Up 143.1%

4,000

3,550

3,369
Up 5.4%42,08240,00030,000Including the COVID-19 subsidy(Million yen)

47.2%

31.8%

-23.0%

2.1%-90.9%

3,000

2,000

1,460
20,000
26.0%

66.1%

+182.2%

1,000

10,00026.8%

002019/12actualDevelopment-related

estimate
Detached houses

2020/12actual2019/12actual2020/12estimate

actualRenovation-related*We have not disclosed the sales and segment income estimate by business segment.

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

12

Information and Telecommunications Business

I&C⚫ Due to COVID-19, the operation of mobile phone shops and corporate solutions has been restricted.
⚫ Revenue decreased due to a reorganization of stores. Nevertheless, structural reforms implemented
until the previous term (measures and investment focused on the strengthening of the store business =improvement of organizations and stores, and enhancement of the capability of attending to customers
and knowledge through human resource development) were successful, so profit increased significantly.

◆Sales composition◆Segment income
Including the COVID-19 subsidy

Down 26.0%(Million yen)

YoY
(Based on
monetary
amount)14,00012,00012,376

12,344

10.1%

10.2%

Up 2,225.0%, 254(Million yen)

Up 2,097.3%
300

Up 1.4%
Segment(Overall)

Down 1.0%
10,000
8,000

9,133
9.9%

11.4%

6,000
4,000

9,222

9,167

89.9%

-28.0%

240

200

100

89.8%
90.1%

88.6%

237

25

10

-25.6%
0

3

2,000
0

-100
2017/12actual2018/12actual2019/12actualMobile phone shop business2020/12estimate
actual2017/12actualCorporate solutions business2018/12actual2019/12actualMobile phone shop businessCorporate solutions business2020/12estimate
actualTotal*We have not disclosed the sales and segment income estimate by destination.
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

13Others

Other⚫ As for the agricultural park business, we had to temporarily close parks in response to requests fromlocal governments in the busiest season from April to May and people refrained from going out due to
COVID-19. As a result of these, we took a big blow.
⚫ However, the forte of outdoor facilities, which are rich with nature unlike normal theme parks, wasexerted, and we implemented appropriate measures for attracting customers. As a result, the number ofvisiting customers to the parks exceeded that in the previous year considerably on a monthly basis from
4Q, indicating a steady recovery trend.
◆Sales composition(Million yen)

◆Segment income
YoY(Based on
monetary
amount)Down 22.0%

5,000

4,118
4,000

1.7%

◆Number of visiting customers(Million yen)

(Ten thousand)

200

132
100

Up 7.1%

3,002

3,000

3,214
2.3%

+3.7%

15

0
-100

88.7%

10

2,000

85.1%

-24.4%

-200

-200
1,000

0

Including the COVID-19 subsidy

-300
12.6%

9.5%

2019/12actualExceeded the previous
year on a monthly basis

20

+4.4%

estimate

School/Web design

-160
-339

-400

2020/122019/12actualAgricultural park

5

actual02020/12estimate

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

actualOthers*We have not disclosed the breakdown of the sales and segment income estimate.
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved(Annual total)

FY2019FY20201,056,000

76,3000

14

Financial Condition B/S⚫ Total assets decreased as a result of the delivery of real estate and careful procurement.
(Million yen)

100,000

Total assets

87,352

79,15780,00060,00076,92068,13240,00020,0000

10,431

11,024End of FY2019

End of FY2020

Fixed assets

Current
68,132 (-8,788)
assetsCash and deposits
Real estate for sale
Real estate for sale in process+6,303 million yen-10,625 million yen-4,087 million yen

Fixed
11,024 (+592)
assetsProperty, plant and equipment
Deferred tax assets-622 million yen+930 million yen

Current assets

Liabilities(Million yen)

100,000

Total liabilities/net assets

87,35280,00060,00052,79040,00010,61720,00079,157
34,637
14,45823,94430,061

End of FY2019

End of FY2020

0
Net asset

Fixed liabilities

49,095 (-14,312)

Short-term borrowings
Advances received
Accrued consumption taxes
Long-term borrowings-10,496 million yen-8,843 million yen+1,615 million yen+3,481 million yen

Net30,061 (+6,116)
assetsCapital
Capital surplus
Retained earnings+457 million yen+458 million yen+5,066 million yen

Current liabilities
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15

Cash Flows⚫ In addition to progress in the delivery of real estate properties, we made careful procurement.
This led to a decrease in real estate for sale and an increase in operating CF.

(Million yen)
Operating CF
Operating CF Investment CF

Financial CF-1,030Translationdifferences, etc.

Income before income taxes and minority interests
Decrease in real estate for sale
Decrease in advances received

6,768 million yen
13,508 million yen-8,845 million yen-6,604
13,770168

Investment CF

Term-endbalance of
cash andcash
equivalents

22,817

Term-startbalance of
cash andcash
equivalents

16,513End of FY2019

Purchase of property, plant and equipment-1,164 million yen
Proceeds from sales of shares of subsidiaries resulting in change in scope of
consolidation
2,029 million yen
Purchase of shares of non-consolidated subsidiaries-1,912 million yen

Financial CF

Net decrease in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Dividends paid

+6,303-7,344 million yen
12,189 million yen-11,412 million yen
706 million yen-887 million yen

End of FY2020
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

16II. Outlook for the Term Ending Dec. 2021
and Future Strategies

17Future Outlook
Business strategies and outlook for the term ending Dec. 2021

Human Resources
and Education
Business

Real EstateBusiness

Information andTelecommunications
Business

Other⚫ Aim for differentiation within the industry with seamless comprehensive support across eachsegment for clients by leveraging our strengths covering a wide range of industries.
⚫ Also expand in the service field in addition to the manufacturing field where our strengths lie.
⚫ Expand mechanisms for stepping up careers of our employees. At the same time, aim to improve
quality and brand power by strengthening our human resource development structure.

⚫ While the market conditions remain difficult to predict due to COVID-19, carefully continue todevelop business without overdoing it and push forward with preparations to prepare for afavorable market trend.
⚫ Established a 20 billion yen commitment line in relation to financial aspects.
⚫ Build a real estate finance base in asset management and servicers.

⚫ The future will remain difficult to predict for the time being due to the start of new plans by carriers
from early spring in response to a request for a cut in mobile telephone charges by the Ministry ofInternal Affairs and Communications.
⚫ Look to continue building an excellent store network. At the same time, aim for stable growth bybuilding a new profit model in which we explore product and area expansion in corporate solutions.

⚫ Strive to improve presence as rest facilities necessary for the community by leveraging thestrengths of outdoor facilities that avoid crowding.

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

FY2021 Business Forecast⚫ Amid fears about the re-expansion in COVID-19 infections and growing uncertainty
about the future, we expect an increase in revenue and operating income.
⚫ COVID-19-related subsidy recorded in non-operating income in the previous term is notincluded in the forecast for this term.
⚫ Net income attributable to owners of parent in the previous term includes the impact
from the review of deferred tax assets due to the sale and merger of subsidiaries.

Results for theterm ended Dec.
2020

Forecast for theterm ending
Dec. 2021

Net sales

143,571

150,194

6,623

4.6%

Operating income

6,251

6,465

214

3.4%

Ordinary income

6,786

6,388

-397

-5.9%

Net income attributable to

5,913

4,573

-1,340-22.7%EPS (yen)341.35-79.33-23.2%

Dividend per share (yen)101.7

262.0278.7-23.0-22.6%

Unit: Million yen, %owners of parent

YoY
ChangeCopyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

Pct. Change

19

FY2021 Factors for Increasing or Decreasing Operating Income⚫ Demonstrate the business portfolio strengths of the group and secure an increase in operating
income overall.
⚫ Expect an increase in profit in our Human Resources and Education Business due to aggressive
business development.
⚫ Predict a decrease in profit in our Real Estate Business as we carefully develop businessaccording to our previous policy without overdoing it.
Human Resources
and Education
Business

Real EstateBusiness

Information andTelecommunications
Business

Other

Adjustment(Million yen)695
-1,382

579

-50

370

6,465

6,251

FY2020operating income

FY2021
operating income(estimate)
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved20

FY2021 Business Forecast by Segment⚫ Steady growth with portfolio strengths in multiple industries and a focus on growth areas in our
mainstay Human Resources and Education Business (growth in the Factory Business inparticular).
⚫ While market conditions remain difficult to predict in the Real Estate Business, we will continue
to take a cautious attitude and look for future investment opportunities.
Results for the(Profitterm ended Dec.
margin)2020

Unit: Million yen, %Net sales

Factory Business
Segment income
Net sales

Human
ResourcesandEducation
Business

Technology Business
Segment income
Net sales

R&D Business
Segment income

Sales & Marketing
Business

Net sales
Segment income
Net sales

Total
Segment income

Real EstateBusiness

Real EstateBusiness

Information andTelecommunications
Business

Information andTelecommunications
Business

Net sales
Segment income
Net sales
Segment income
Net sales

Other

OthersSegment income
Net sales

Total

Elimination or
corporate

Operating income

55,102
2,632
17,003
2,019
7,200
843
3,835
18
83,142
5,515
48,081
3,550
9,133
240
3,214
-200
143,571-2,8546,251(4.8%)(11.9%)(11.7%)(0.5%)(6.6%)(7.4%)(2.6%)(-)(4.4%)

Forecast for theterm ending
Dec. 2021

65,964
3,476
18,135
1,908
7,876
849
4,849
-23
96,825
6,210
40,363
2,167
8,769
190
4,236
170
150,194-2,274
6,465

Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved(Profitmargin)(5.3%)(10.5%)(10.8%)(-)(6.4%)(5.4%)(2.2%)(4.0%)(4.3%)

YOY
Change10,861
843
1,132
-110
675
5
1,013
-42
13,683695-7,717-1,382
-364
-50
1,022
370
6,623
(-)
214

Pct. Change

19.7%
32.0%
6.7%
-5.5%
9.4%
0.6%
26.4%
(-)
16.5%
12.6%
-16.1%-38.9%-4.0%-20.8%
31.8%
(-)
4.6%
(-)
3.4%

21

Future Strategies of the Human Resources and Education Business (1)HR

We cover a broad range of domains centered around manufacturingwith our seamless services.

R&D

R&D Business

Design/development

Manufacturing

Technology
Business

Factory Business

Logistics

Factory Business

After-sales
ServiceTechnology
Business

Light work
MarketingCall center
Sales &
MarketingBusiness

Without being limited to partial business areas,
achieve seamless and comprehensive support and accept batch orders in
multiple segments

Comprehensively increase orders
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

22

Future Strategies of the Human Resources and Education Business (2)Outsourcing market
expansion against the
backdrop of COVID-19

HR

Creation of
unprecedented
markets

Market scale: 6.5 trillion yen + αMarket scale: 3.5 trillion yen + α

Cultivation

No. 1 brand

Manufacturing field

Service field

To become No.1 in the manufacturing field+
To cultivate business in the service field
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

23

Future Strategies of the Human Resources and Education Business (3)Co-sourcing

HR

Evolved outsourcing for not only supporting HR sections
quantitatively, but also solving problems with clients together

Create a new HR business market by utilizing joint venture and the consortium model<Example><Example>

Manufacturing field

Service field

Joint venture with Toho Titanium Co., Ltd.

Joint venture with JTB Group

Commercialize the business to pass down thetechnology and skills in the material industry

Cultivate advanced personnel needs in the tourism industry

Toho Titanium Co., Ltd.
Know-how of human resources businessKnow-how of manufacturing

Scene of “Press conference on the establishment of TOHOWORLD CORPORATION”(Feb. 20, 2020; Kitakyushu City Hall, Civic Club)

Scene of “Press conference regarding the collaborative business of World Holdings and JTB Group”(Jan. 28, 2020; Imperial Hotel)

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

24Future Strategies of the Real Estate Business (1)Real
EstateSecure profits at an appropriate size in existing areas with the aim of growthfrom real estate financeReal estate for investment
Push forward at an appropriate size tosecure profits

Development
Condominiums
Detached houses
Commercial land

Real estate
revitalization
Renovation
Redevelopment

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

Growth area

Real estate
financeCollection ofreceivables
Asset management
REIT
Funds

25

Future Strategies of the Real Estate Business (2)Real
EstateAim for the long-term holding of profitable properties (recurring
revenue business) and realize an even more stable management
structure by constructing functions that can respond from both
real estate for investment and real estate finance aspects.
Procurement Functions

Real Estate Portal

Value Improvement Functions

Long-term Holding Functions<Finance business under the Act on
Specified Joint Real Estate Ventures><Finance business under Financial
Instruments and Exchange Act>Private Placement
Fund
Private Placement
REIT

Financial institutions, etc.
(Gateway to real estate with the revitalization ofcompanies)

World Capital Solution

Mirai Servicing(Real estate derived from bad debts)

World Asset Management(Real estate fluidization, securitization and operation)

WHD real estate business(Development projects and stocking projects)

Investment by leading regional banks instrategic areas

Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved26

Overall Picture of the Growth Strategies
Develop in multiple business/industries and build a wellbalanced stable management base
Human Resources andEducation Business

Real Estate BusinessInformation andTelecommunications Business

OthersEstablishment of a business model focused on
the ability to respond to changes
Recurring
revenuebusiness

Diversificationof business
Decentralization

One-timerevenuebusiness

Amid fears about the re-expansion in COVID-19 infections and growing
uncertainty about the future,

Ascertain changes in the times and accurately grasp market needs toachieve growth
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved27

Shareholder Returns
We aim to increase dividends stably and continuously, and achieve
a payout ratio of 30%.
Dividend per share
(Yen)
（円）

Initial estimate
Results

100.0

101.7
88.7

82.7 82.8 83.0
80.0

78.7

75.3
68.5
63.2

60.0

65.5

52.7
45.7

40.0
23.7 25.3
20.0
4.5

8.5

8.510.0

14.3

0.0
2012/12 2013/12 2014/12 2015/12 2016/12 2017/12 2018/12 2019/12 2020/12 2021/12(forecast)*The forecast and dividend estimated are based on the information that the Company 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 Reserved28

III. Appendix
Profile of World Holdings

29

Established ENGMAINTEC CO., LTD.

Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved
through JV with Toho Titanium Co., Ltd.

2019

Established TOHOWORLD CORPORATION (material)

Acquired 100% ownership of Mirai Servicing Co., Ltd. (finance)

2018

Acquired 100% ownership of WORLD ASSET MANAGEMENT CO., LTD.
(finance)

2016

through JV with JTB Group

1st Sectionof TSE

Established JW SOLUTION CO., LTD. (tourism)

2017

U.S.

2015

Established WORLDINTEC AMERICA, INC.

(JASDAQ)

Acquired 100% ownership of FARM CO., LTD. (agricultural park)

Became a pure holding
company

Indonesia

2014

Established PT. WORLD DEVELOPMENT INDONESIA

China

2013

Acquired 100% ownership of WORLD MIKUNI CO., LTD.
(Kyusyu area)2012

Acquired 100% ownership of MIKUNI CO., LTD. (renovation)

2010

Name changed to WORLD HOLDINGS CO., LTD.

Stock listing

Established WORLD WISTERIA HOMES CO., LTD. (Kansai area)2005

Acquired 100% ownership of DOT WORLD CO., LTD. (CRO)2003

Established WORLD RESIDENTIAL CO., LTD.
(Kanto area)

Acquired 100% ownership of E-SUPPORT, INC.

Establish-ment

Established WORLD ICITY CO., LTD. (Tohoku area)

Sales & Marketing
Business

TaiwanEstablished WORLD INTEC TAIWAN CO., LTD.

1993

R&D BusinessTechnology
Business

Established WORLD INTEC CO., LTD.

1981

Factory Business

Established Mikuni Industry Co., Ltd. (current, MIKUNI CO., LTD.)

History
We have not engaged in M&As to expand size before. We havemainly engaged in M&As and revitalized companies to cultivate
new business.
Blue: Human Resources andEducation BusinessGreen: Information andTelecommunications Business
Orange: Real Estate Business2020

Human Resources andEducation BusinessInformation andTelecommunications Business
Real EstateBusiness30

Main Subsidiaries and Associates
Human Resources andEducation Business

The“Ways We
Live”

Connecting people to jobs a
new ways of working

Real Estate BusinessConnecting people with homes shaping
the way we live through home creation
WORLD RESIDENTIAL CO., LTD.

WORLD INTEC CO., LTD.

Information andTelecommunications BusinessWORLD STAFFING CO., LTD.
WORLD CONSTRUCTION CO., LTD.

Bring people together through new styles ofcommunications with information
technologies

WORLD NEXT CO., LTD.

DOT WORLD CO., LTD.

WORLD ICITY CO., LTD.

WORLD WISTERIA HOMES CO., LTD.

NICHIMO REAL ESTATE CO., LTD.

COMPAX CO., LTD.
BEST IT BUSINESS CO., LTD.

JW SOLUTION CO., LTD.

OthersWORLD INTEC TAIWAN CO., LTD.

WORLD MIKUNI CO., LTD.
CROWDWEIGHT CO., LTD.
M'S WORLD CO., LTD.
ADVAN CO., LTD.
OMACHI WORLD CO., LTD.

GEOGRAPHIC INFORMATION OF KYUSHU, INC.

Main Subsidiaries andassociates: 36<Consolidated: 32/Non-consolidated: 4>
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

FinanceWORLD ASSET MANAGEMENT CO., LTD.

MIRAI SERVICING CO., LTD.

31

Domains of the Human Resources and Education Segment

HR

We cover a broad range of domains centered around manufacturingwith our seamless services.

R&D

Design/Development

R&D BusinessTechnology
Business

Manufacturing

Logistics

Sale

After-sales
Service

Factory Business

Factory Business

Sales &
Marketing BusinessTechnology Business

For workers

For clients
Our capability of meetingneeds in any field all by
ourselves

R&D Business
Biotechnology/Chemical
Researcher at CRO

About 1,100

Value

Technology
Business
Design/Development
Engineer

About 2,800

About

A wide range of job vacancies andplenty of opportunities to improve skills
and develop careers

Growth potential
Factory Business
Manufacturing/Logistics
Operator

Sales & Marketing
Business
Sales and light work

About 22,100

About 1,500

27,500 workers in service

Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved*As of the end of December 2020

32

Domains of the Real Estate Segment

Real
EstateReal estate for investment

Real estate
revitalization

Development
Condominiums/Detached houses
Commercial land development

Renovation
Redevelopment

Conduct business mainly in major cities of
the Tohoku,
Tokyo Metropolitan, Kinki andKyushu areas

Conduct real estate
revitalization business, such as
renovation, around
Japan.

BeforeDistribution
BrokerageRealestatefinance

Property
management

Collection ofreceivables
Asset
management

After

Residential Kamiitabashi Park Gate
(Tokyo)One-time revenue business

Recurring revenue businessStabilization by combining one-time revenue business and recurring revenue businessand by combining areas with different business cycles

Appropriately expand scale in the real estate for investment field
and achieve growth in real estate finance
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

33

Domains of the Information and Telecommunications Segment
Mobile phone shop

Corporate solutions

The largest network of stores in Kyushu
Cell phone shops in Fukuoka, Saga, Oita, Kumamoto,Nagasaki, and Okinawa Prefectures

Softbank Shop
au ShopY! Mobile Shop

I&C

We propose the reduction of costs for electric power,
communications, etc. by selling our products to corporations.
Air conditioners forbusiness use

Monitoring cameras

LED lighting

Comprehensive cost
reduction solutions
Smartphones
Supplies

Computers

37 stores
As of December 2020

Telephone system forbusiness use

Water dispensers

Multifunction
machines

Security

Internet lines

Call center
Sale of various products
for individuals and corporations

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

34

Operation and Management of Agricultural Parks, Etc.

Other

Operation of nature-rich agricultural parks,etc. at 12 locations around Japan
Operation of a total of 12 facilities, including 4 directly
managed facilities and other entrusted facilities
Rakuten Seimei Park
Smile Glico Park

Directly managed

Comorebi

Minokamo Rest Area

Ibaraido Forest
Kanzaki Farm Park

Yodel Forest

Kitakyusyu Municipal

Sougou Nouji Center
Chiba Zoological Park

Fureai Dobutsu-no-Sato
Hibikinada

Shiga Agricultural Park

Green Park

Blumen Hugel
Farm

Directly managed

Sakai Greenery Museum

Harvest Hill

Directly managed

Directly managed

Ama Site Park

Okayama Forest Park

German Forest

Wakayama Castle
Zoological Park

Group synergy
Job creation and regional
development

We also produce andsell homemadesausages,
confectionery, beers,etc.

To create a broad range of jobs for local communities and vitalize and develop each region

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

35Inquiries

The “Ways We Live”

No information in this presentation is provided for the purpose of solicitingpurchases or sales of our stock. Furthermore, opinions, forecasts and otherinformation not based on historical facts represent our judgments at the time
this presentation was prepared.
We do not guarantee the accuracy of this information and may revise thisinformation at any time without prior notice. We and other providers of thisinformation assume no responsibility whatsoever for any losses incurred inassociation with the information in this presentation.
Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved

Norio Nishihara
Public and Investors Relations OfficeWORLD HOLDINGS CO., LTD.
TEL: 03-3433-6005

E-MAIL: irinfo＠world-hd.co.jp
URL: http://www.world-hd.co.jp/36