FY2013 Third Quarter Financial Results

I.

Summary of FY2013 Third Quarter Financial Results

II.

Highlights by Segment

III.

FY2013 Business Forecasts
November 7, 2013
World Intec Co., Ltd
JASDAQ (2429)

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

I. Summary of FY2013 Third Quarter Financial Results

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved2Summary of FY2013 Third Quarter Earnings
Both sales and profits, mainly at the Human Resources and Education
business, increased in the third quarter.
Million yen, %2012/3Q (actual) 2013/3Q (actual)
Net sales
Operating income
Ordinary income
Net income/loss

40,296
1,033
1,052
640

41,551
1,502
1,538670

YoY
ChangePct. Change

1,254
469
486
29

3.1
45.4
46.2
4.6

FY2013full-year forecast *Progress against
the full-year
forecast

56,487
1,853
1,793
712

73.6
81.1
85.8
94.1

* Announced on February 12, 2013

1Net sales grew by 3.1% and ordinary income increased by 46.2% on a year-on-year basis.
® Both sales and profit increased in Human Resources and Education Business, and sales
increased in Information & Telecommunications business.

2Operating income increased significantly by 45.4% year on year.
® Cost improvement in the Human Resources and Education business and recovery of priorinvestment progressed.

3

Net income slightly grew by 4.6% on a year-on-year basis.
® Taxes increased due to the profit increase, as well as elimination of cumulative loss of lossmaking subsidiary that had been recorded by the previous period.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

3

Business Summary by Segment
Million yen, %Net sales

Factorybusiness

Technology
business

R&D businessInformation
technology &telecommunicationsbusiness

Real estatebusiness

Others2013/3Q(cumulativeactual)(cumulativeactual)*

YoY
ChangePct. Change

FY2013
forecast **Progress against
the f ull-year
forecast

320

13,529657

Prof it margin

2.4%

4.9%

－－

5.3%

Net sales

4,585

76

1.7

7,201

64.7%

104

38.4

573

66.0%

Segment income

13,098431

3.3

21,488

63.0%

336

105.1

1,142

57.5%

273

4,662
378

Prof it margin

6.0%

8.1%

－－

8.0%

Net sales

2,123603

28.4

4,053

67.3%

△22

△ 13.0342

43.6%

Segment income

171

2,726149Prof it margin

8.1%

5.5%

Net sales

8,849

1,069

Segment income

－

8.4%

12.1

11,000

90.2%

00.0

300

114.7%－－

2.7%

6,431 △1,246△90433△ 16.2

8,215

78.3%

390

111.0%

－

4.8%

8.1

4,528

94.5%
106.8%

344

9,918
344

Prof it margin

3.9%

3.5%

Net sales

7,678

Segment income

Segment income

524Prof it margin

6.8%

Net sales

3,960

Segment income
Prof it margin
Net sales
Elimination or corporate

Total

2012/3Q

Operating income
Operating margin－△ 17.3

6.7%

－

321

140

4,281
2197956.6

2053.5%

5.1%

－－

4.5%

40,296

41,551
△679
1,502

1,254

3.1

56,487

73.6%

45.4

△1,101
1,853

81.1%

△740
1,033
2.6%

3.6%

61469
－3.3%

-*Figures are rounded down to the nearest 1 million yen. ** Announced on February 12, 2013
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved4Change in Net Sales by Segment(Million yen)

43,00042,500

Direct contribution of DOT (380)
Expansion of pharmaceutical andbiotechnology fields (223)

Information &telecommunications
business

Strong sales of smartphones
and tablets

1,069
Growth of CBbusiness

42,000
Launch of a large-scale
project

41,500
Factorybusiness
431

41,000Technology
business
76

Real estatebusiness△1,24640,500Decrease in the number ofhouses built for sale2013/ 3Q
41,551

Production technology △274
Design development +350

40,00039,500

Others321

R&D
business603

2012/3Q
40,296¥1,254 million
39,000
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved5Changes in Operating Income by Segment
Profit contribution of thelarge-scale project
Cost improvement(Million yen)

1,600

Factorybusiness
336

1,400
1,200

Growth of CB
business

Shifting to a high-unitprice business
Improving costTechnologybusiness
104

Information &telecommunications
business

R&D
business△220Others
79

Eliminations
or corporate

61

Real estatebusiness△90

1,000
Goodwill amortization associatedwith making DOT a subsidiary △75

800
600
400

The number of houses built for saledecreased from 177 units in theprevious period to 100 units in thecurrent period.

2013/3Q
1,502

2012/3Q
1,033¥469 million

2000Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

6

Financial Condition B/S(Million yen)

Total assets

35,00030,14830,00023,80525,00021,27910,00027,818• Real estate for sale
• Others

5,000

2,525

2,330

End of FY2012

End of FY2013 3Q

Fixed assets

Current assets0(Million yen)

Total liabilities/net assets

35,00030,14830,00025,00023,805

10,0005,000
015,733
2,245
5,826
End of FY2012

Net assets

Current liabilities

783 (+731)
1,627 (+528)

Due to sale of real estate, etc.
Acquisition of land for new forsale in process PJ
Real estate properties which are
not delivered yet

19,742 (+4,008)• Short-term debt
11,542 (+2,154) Fund for purchase of real estate for sale
• Accounts payable-Real Estate Business
1,955 (+1,517)

19,74220,00015,00027,818 (+6,539)• Cash and deposits 6,611 (+1,714)• Real estate for sale in process
13,814 (+3,759)

20,00015,000Current assets

Fixed liabilities

Fixed liabilities

3,925• Long-term debt

3,925 (+1,680)

3,427 (+1,623)

Fund for purchase of real estate for sale

6,481
End of FY2013/3Q

Current liabilities

Interest-bearing debt outstanding(end of FY2013 3Q): ¥14,969 million(up ¥3,778 million from the end of FY2012)Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

7II. Highlights by Segment

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8Human Resources and Education Business
Factory Businesses Progress of large projects
Thousand yen

100,000
80,000 Project A Liquid Crystal category
700 pers

100,000.

Sales

600

Budget80,000500

Actual assignment

60,000Thousand yen

Planned assignment

40,000400

60,000300

40,000 Project B Logistics category
Sales
Budget600

Actual assignment

500

Planned assignment Project C Electric & Electronics category

250,000

Thousand yen

200,000

700 pers 100,000.

600

80,000500Planned assignment

400150,000

300

100,0000Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep.

Thousand yen

Sales
BudgetActual assignment

10000Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep.

300,000

 Project D Electric & Electronics category
Sales
BudgetActual assignment
Planned assignment

10000Jan. Feb. Mar. Apr. May. Jun.

Jul.

Aug. Sep.

700 pers
.

600
500

60,000400

40,000300

200

50,000400

200
20,000

1000.

300

200
20,000700 pers

200
20,00010000Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep.

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

9Human Resources and Education Business
Factory Businesses
Expansion in the electrical & electronics segment in association with smartphones andlogistics segment, as well as the overall cost improvement are underway.
18000

Sales composition by businesssegment (%)

16000

4.6

5.3

14000

6.2

8.4

8.7

12000

10.6
2.8
7.4

5.6

9.9

10000

11.1

13.7

19.0

8000
6000

35.0

25.4

2000

(persons)
7,000
6,000

10.3

5,000

21.1

4,000

23.7

3,000

4000

Transition in the number of staff andpersonnel in service*

13.6%

2,000
24.1

25.9

21.0.
1,000

2.9%

0

2011/12 3Q

2012/12 3Q

Environment & Energy
Logistics
Electrical & electronics
Others2013/12 3Q
Machinery
Automobiles
Semiconductors* For a detailed breakdown of data for other businesses,
please refer to the reference data.

10.1%

0

2013/1

2

Number of staff

3

4

5

6

7

8Personnel from other companies / dispatched staff

9Year /month* The number of staff and the number of personnel inservice are the same in December 2012 and before.

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10Human Resources and Education BusinessTechnology Businesses
The shift from semiconductor production technology to design development of
automobile and information & telecommunications services is advancing.
5000

Sales composition by businesssegment (%)(million yen)Transition in sales and number of staff

1,800

4500
4000

16.2
3.2
5.9
14.0

3500
3000
2500

16.4
8.4
5.6

6.9
7.3
18.5

772

800
642

1,200
532

600

900

573
13.6%

2000

400

600

1500

60.7

1000

50.9

200

300
2.9%

500

00

2012/12 3Q
Others

1,000

18.5％

1,500

(persons)

Machinery

Automobiles

2013/12 3Q
Information Technology &Telecommunications 2

10.1%

2012 1Q 2012 2Q 2012 3Q 2012 4Q 2013 1Q 2013 2Q 2013 3Q

Semiconductors*The graphs show sales, and figures show sales composition ratio.
**For data for segments other than those above, please refer to reference data.

0Production technology sales
Design development sales
Number of staff in production technology
Number of staff in design development

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11Human Resources and Education Business
R&D Businesses
Actively recruiting personnel against the backdrop of synergy effect with DOT
and a rise in demand in the pharmaceutical and biotechnology fields.
(million yen)

Sales composition by business field (%)

1,000(million yen)Transition in sales and number of staff

1,00019.0

800700605800(persons)526600500

6.060036.0600

400

44.0
400300400200200

45.050.0200510
2012 3Q
Pharmaceutical /biotechnology

2013 3Q
ChemicalClinical* Figures in the graph shows the percentages (%) to sales in the R&D business.

10000
2012 3Q 2012 4Q 2013 1Q 2013 2Q 2013 3Q
R&D sales (excluding DOT)
DOT sales
Number of staff in R&D (excluding DOT)
Number of staff in DOT

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved12Human Resources and Education Business
CB Business (Other business segment)
By promptly responding to request for staffing,
we are capturing demand for certain.

(million yen)

Sales composition ratio in otherbusiness segment*

Transition in the number of staff in
CB business(persons)

5,000

800

687

4,000

31.8

30.0

600

3,000

549

Others

21.0

32.0

CB

400

2,000
Administrative
contact

1,000

47.2

200

38.0002012/12 3Q

2013/12 3Q

2012/12 3Q

2013/12 3Q* Figures in the graph show the sales composition ratio (%) in other business segment.
** Other business segment comprises the CB business for dispatch of sales personnel, the Disabled Persons Employment Support
business of GEOGRAPHIC INFORMATION OF KYUSHU, INC., Education business of Advan Co., Ltd. And Construction business fordispatching construction managing engineers, etc.

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13

Information & Telecommunications Business:
Trends in total unit sales of mobile phones and smartphones
Units

Annual sales of more than
300 thousand units

Note: The above are consolidated fiscal years and are 3 months behind the calendar years.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved14

Real Estate Business
Promoting purchase by taking business profitability into
account and community-based sales.

Purchasesituation

Deliverysituation

Tokyo metropolitan area: 10 properties
Sendai and other areas: 3 properties

Equivalent to sales of
22.6 billion yen

In-house developed properties: 84 properties (Tokyo metropolitan area: 84 properties)
Contract selling properties: 165 properties(Tokyo metropolitan area: 74 properties; Tohoku area: 91 properties)*About 90 percent of properties contracted were delivered.

Sales
situation

398 properties were contracted for sale.
In-house developed properties: 96 properties for the current fiscal year;
176 properties for the next fiscal year or thereafterContract selling properties:
68 properties for the current fiscal year;
58 properties for the next fiscal year or thereafter

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15

III. FY2013 Business Forecasts

Copyright
AllRights
RightsReserved
Reserved
Copyright©©WORLDWORLDINTEC
INTEC CO.,LTD.
CO.,LTD. All

16

Summary of FY2013 Business Forecasts
FY2012 actual

Net sales
Operating income
Ordinary income
Net income

EPS (yen)
Dividend per share (yen)FY2013 forecast

53,0071,223
1,290
658

56,487
1,853
1,793
712

40.3
8.5

42.4
8.5

YoY
ChangePct. Change

3,479629503
54

6.6
51.4
39.0
8.3

1Expect 6.6% increase in sales and 39.0% increase in ordinary income YoY in FY2013® Expect record-high operating income and ordinary income since FY2007

2Pursue strategies that place emphasis on profit over sales expansion.
® Full-scale recovery of prior investment for launching Factory business.

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

17FY2013 Business Forecasts by Segment
Million yen, %FY2012actual

489

653

133.5

2.7%

5.3%

-

-

Net sales

6,197

16.2356

7,201
573

1,004

Segment income

217

61.0

5.8%

8.0%

-

-

Net sales

2,984

1,069

35.8

Segment income

269

4,053
342

73

27.2

9.0%

8.4%

-

-

11,658408

11,000300

△658
△108

△ 5.7
△ 26.5--

Prof it margin

R&D business**

Prof it margin
Net sales
Information technology &telecommunications business

Segment income

3.5%

2.7%

Net sales

8,794

Segment income

462

8,215
390

5.3%

4.8%

Net sales

5,479

Segment income

211

4,528
205

3.9%

4.5%

Net sales

53,007

Elimination or corporate△973

56,487△1,101
1,853

Prof it margin

Real estate businessProf it margin

OthersProf it margin

TotalPct. Change

20.1Prof it margin

Technology businessChange3,594

Segment income

17,893

YoY

21,4881,142

Net sales

Factory business

FY2013
forecast*

Operating income

1,223

Operating margin

2.3%

3.3%

-

△579
△71
△950
△5-

3,479-△ 6.6△ 15.5△ 17.4△ 2.8-

6.663051.5-*Figures are rounded down to the nearest 1 million yen.
**Amortization of DOT goodwill on consolidated basis was transferred to the R&D segment from the cost of headquarters initially placed.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

18

Consolidated Business Results
Net sales(Million yen)

60,000(Million yen)

Expect record-high sales and profits in FY2013
53,0074,000

56,487

Operatingincome

50,0003,000
40,0001,853

30,000

2,000

1,345
20,0001,000
10,0000

2006/12
2007/12
2008/12
Human resources & Education

2009/12

Information technology & telecommunications

2010/122011/122012/122013/12(Forecast)

0Real estate

Operating income (right scale)
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved19World Intec Corporate Profile
CompanyWORLD INTEC CO., LTD.

Head Office

4F No.2 Quest Building, 1-3-9 Bashaku, Kokurakita Ward, Kita-Kyushu City, Fukuoka Prefecture

EstablishedFebruary 12, 1993

CEOEikichi Iida

Main
Businesses

Human resources business centered on manufacturing(R&D, Design/development, production technology, manufacturing, logistics, sales, after-sales services)

Capital¥701 million (as of June 30, 2013)

Workforce

9,373 (consolidated/ as of June 30, 2013)

Locations

63 (consolidated/ as of June 30, 2013)

Listed Date

February 9, 2005 (JASDAQ Stock Exchange / Stock Code 2429)<<Corporate Symbol>>WORLD INTEC’s corporate symbol represents the cuttingedge in the effort to create new meaning to work and thejoys associated with one’s vocation.
The blue sphere stands for our engineering expertise andthe trust we have accumulated, while the yellow figure
symbolizes further growth and development, as well as thecorporate ideal we aim to realize.

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved20Human Resources and Education Business: Reference Data
Factory business

Trends in sales of factory business by region and industry sector[Percentage of sales by region]
Kyushu[Number of staff]
ChugokuKansai

Tokai

Kanto

TohokuJapan

Taiw anTotal

2013/3Q

30.5

32.7

8.5

3.5

17.3

7.5

2013/3Q

5,366

276

5,642

2012/3Q

39.3

31.3

7.3

3.0

12.8

6.4

2012/3Q

5,800

385

6,185.0*Number of staff until FY2012/1Q includes that in WORLD INTEC FUKUSHIMA but not thereafter.
[Percentage of sales by business category]
Semiconductor

Electrical &electronics

Logistics

Automobile

MachineryEnv ironmental
energyFood/consumables

ChemicalPrecisionequipment

Pharmaceuticals

Others2013/3Q

22.3

25.1

10.6

9.7

8.0

5.4

3.3

3.1

1.6

0.0

10.9

2012/3Q

23.4

22.2

6.9

11.8

7.6

3.9

2.9

2.9

6.4

0,1

11.9

Trends in sales of technology business by region and industry sector
Technology business[Percentage of sales by region][Number of staff]

KyushuChugokuKansai

Tokai

Kanto

TohokuJapan

2013/3Q

36.0

26.2

11.7

3.2

20.4

2.4

2013/3Q

1,222

2012/3Q

44.7

27.4

3.4

1.9

16.2

6.4

2012/3Q

1,308

Automobile

Environmental
energyElectric &electronicsPrecisionequipment

ChemicalFood/consumables[Percentage of sales by business category]
Information &Semitelecommunica Machinery
conductor
tions

Logistics

Pharmaceuticals

Others2013/3Q

49.6

18.8

8.3

6.9

5.0

4.7

1.1

0.3

0.3

0.1

0.1

4.9

2012/3Q

59.3

14.6

3.2

7.2

3.8

4.5

1.6

0.4

0.0

0.0

0.2

5.2

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21

For more information

Akihiko Omoto
Public Relations and Investor Relations Department
Corporate Planning Division
World Intec Co., Ltd.

TEL

03-3516-1122

E-MAILirinfo@witc.co.jp

URL

http://www.witc.co.jp/

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

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved22