Consolidated Financial Results for the Second Quarter of 2022
(Six Months Ended June 30, 2022)[Japanese GAAP]
August 9, 2022
Listing: Tokyo Stock Exchange
URL: http://www.world-hd.co.jp

Company name: WORLD HOLDINGS CO., LTD.
Stock code:
Representative:
Contact:

2429
Eikichi Iida, Chairman and President
Shigeru Nakano, Director, Business Management Division Manager
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
August 10, 2022
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Yes (for institutional investors and analysts)
Holding of quarterly financial results meeting:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Six Months of 2022 (January 1 to June 30, 2022)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%

86,208Six months ended Jun. 30, 2022
65,047Six months ended Jun. 30, 2021
Note: Comprehensive income (millions of yen)

Million yen%

Million yen%

Million yen

%

2,549
1,891

34.8
(24.3)

32.5
4,629
88.8
4,740
80.8
(8.2)
2,452
(11.6)
2,621(8.7)
Six months ended Jun. 30, 2022: 2,717 (up 35.4%)
Six months ended Jun. 30, 2021: 2,007 (down 22.9%)

Net income per share
Six months ended Jun. 30, 2022
Six months ended Jun. 30, 2021

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Diluted net income per share

Yen

Yen

145.95108.37145.16
107.65(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

110,936
34,618
As of Jun. 30, 2022
As of Dec. 31, 2021
97,26933,226
Reference: Shareholders’ equity (millions of yen)
As of Jun. 30, 2022: 32,709

Yen

29.5
1,871.40
32.4
1,803.96
As of Dec. 31, 2021: 31,501

2. Dividends
Dividends per share
1Q-end2Q-endYen

3Q-endYear-end

Total

Yen

Yen

Yen

Yen

2021
0.00
2022
0.00
2022 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

-

79.50

79.50

-

80.00

80.00

3. Consolidated Forecast for 2022 (January 1 to December 31, 2022)
Net sales
Million yen

Operating profit%

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

Ordinary profit%

Million yen%

Million yen%

Yen

Full year
180,000 16.4
8,400
12.3
8,200
6.0
4,600
(0.6)
263.38
Note: Revisions to the most recently announced consolidated forecast: Yes
Regarding revisions to the consolidated forecast, please refer to the press release titled “Notice of Differences between First-half
Forecast and Results of Operations and Revisions to Consolidated Forecasts” dated August 9, 2022.

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly
Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consol idated
Financial Statements” on page 12 for further information.

(3) 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 “2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly
Consolidated Financial Statements, Changes in Accounting Policies” on page 12 for further information.

(4) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Jun. 30, 2022:

17,592,400 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 Jun. 30, 2022:

113,573 shares

3) Average number of shares during the period
Six months ended Jun. 30, 2022:

17,478,827 shares

Six months ended Jun. 30, 2021:

17,453,917 shares* The current financial report is not subject to quarterly review 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 p erformance. Actual results
may differ materially from the forecasts for a number of reasons. Please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward -looking Statements” onpage 5 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for quarterly financial results
The Company plans to hold a financial results meeting for institutional investors and analysts on Thursday, August 18, 2022.
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 the Second Quarter of 2022

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

4(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

5

2. Quarterly Consolidated Financial Statements and Notes

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income

8

Quarterly Consolidated Statement of Income
For the Six-month Period

8

Quarterly Consolidated Statement of Comprehensive Income
For the Six-month Period9(3) Quarterly Consolidated Statement of Cash Flows

10(4) Notes to Quarterly Consolidated Financial Statements

12

Going Concern Assumption

12

Significant Changes in Shareholders’ Equity

12

Changes in Significant Subsidiaries during the Period

12Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

12

Changes in Accounting Policies

12

Segment Information

13

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WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
The Japanese economy recovered slowly during the first half of 2022 as the severity of the pandemic declined.
Overall, there was a combination of positive and negative factors affecting the economy, including the negative
effects of the Ukraine crisis, the yen’s depreciation and rising prices of raw materials.
The Human Resources and Education Business, which is the core business of World Holdings, has been
performing better than planned because of the receipt of large orders that reflect current market trends. This
performance has been supported by accurate and effective marketing activities. In the Real Estate Business, thevolume of sales and contract closings has exceeded the plan as this business continues to use a cautious stance. As
a result, first half consolidated sales and earnings were higher than one year earlier and surpassed the plan for the
first half.
Net sales increased 32.5% year on year to 86,208 million yen (up 11.6% vs. plan). Operating profit increased
88.8% to 4,629 million yen (up 308.4% vs. plan), ordinary profit increased 80.8% to 4,740 million yen (up353.2% vs. plan), and profit attributable to owners of parent increased 34.8% to 2,549 million yen (up 305.3% vs.
plan).
The sales and earnings forecasts for 2022 have been increased because of the strong performance of the Human
Resources and Education Business. The sales forecast is 180,000 million yen, 6.6% higher than the previous
forecast and 16.4% higher than 2021 sales. The operating profit forecast is up 34.5% to 8,400 million yen, 12.3%
higher than in 2021, the ordinary profit forecast is up 35.5% to 8,200 million yen, 6.0% higher than in 2021, andthe profit attributable to owners of parent forecast is up 19.1% to 4,600 million yen, 0.6% below the 2021 profit.
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 increasing
the value of human capital, which is the group’s most important resource, chiefly through the activities of the
Human Resources and Education Business, we are determined 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. Segment information for the first half of 2021 has been restated for consistency with
the new segments to facilitate year-to-year comparisons.
Products Human Resources Business
The performance of this business was affected by reductions in production by some companies as all clientcompanies were having difficulty procuring parts because of the Ukraine crisis, the Shanghai lockdown due to thepandemic, and other reasons. However, sales and earnings were higher than on e year earlier and above the plan as
carefully targeted marketing activities supported the growth of operations in the manufacturing, techn ology andR&D categories.
Many activities are contributing to the improvement in the performance of this business. On e significant factor is
the receipt of large orders and ability to extend existing orders, particularly in the semiconductor and electronic
components sectors. Performance is also supported by the growth of subcontracting and team assignment projects,
which are major strengths of this business. In addition, training programs for managers and the use of the digitaltransformation raised productivity and there were activities for shifting emphasis to projects where fees arehigher.
A new initiative has started in this business for the establishment of a new Industry Standard Platform system andthere has been steady progress. One step was an investment by World Intec Co., Ltd., a member of the World
2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

Holdings Group, in Cloud Staffing Co., Ltd. and the start of joint activities with this company. The goal is to use
the new platform to raise the productivity of the entire temporary staffing industry and improve the workplaceenvironment for the temporary staffing workforce.
As a result, sales were 41,203 million yen, up 25.4% year on year (up 8.5% vs. plan) and segment profit increased
29.5% to 1,901 million yen (up 185.7% vs. plan).
Services Human Resources BusinessIn the core logistics sector of this business, the start of operations at locations newly opened in 2021 went welland these business sites are performing as planned. The call center, light-duty work and customer service
categories performed well due to the receipt of more large orders than planned from public-sector clients, forvaccination center staffing and other projects. As a result, sales and earnings were higher than one year earlier
and exceeded the plan.
In the logistics sector, there were preparations for opening more offices and establishing relationships with newcustomers as well as training programs for managers. In addition, the hospitality skills of Dimples Co., Ltd.,
which was acquired in February 2022, was used to strengthen capabilities for sales activities involving direct
customer contact. There are also activities to create synergies with current business operations for the growth of
this business segment.
Sales were 20,651 million yen, up 34.3% year on year (up 18.3% vs. plan) and segment profit increased 72.7% to695 million yen (up 299.7% vs. plan).
Real Estate BusinessThis business is operating with caution because real estate prices in Japan remain high. The number of properties
where sales closed was as planned and some closings planned for the second half were moved up to the first half.
As a result, sales and earnings were higher than one year earlier and exceeded the plan.
The majority of sales of large properties are planned for the second half of 2022. In the first half, sales ofcondominiums and commercial property were higher than planned.
We are purchasing real estate with caution while monitoring changes in the real estate market. We are making
steady progress with the acquisition of properties that will generate sales in 2023 and afterward by using M&A
activities, expertise for the creation of commercial properties and other core real estate strengths.
Sales were 17,551 million yen, up 67.4% year on year (up 19.4% vs. plan), and there was a segment profit of
1,587 million yen, up 296.5% (plan was a 480 million yen loss).
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, new service plans for only internet access and other events. Sales andearnings were down due to lower sales per user and a decline in fee income caused mainly by revisions to theterms for fees. As the role of stores in the mobile phone agency sector changes, we will continue to build a
network of outstanding 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 thebenefits of being one of the survivors in the mobile phone shop sector.
Sales were 4,594 million yen, down 7.1% year on year (down 10.8% vs. plan), and there was a segment profit of
76 million yen, down 18.1% (down 43.9% vs. plan).
Agricultural Park BusinessAlthough pandemic safety measures in January and February held down the number of visitors at agriculturalparks, the number of visitors returned to the 2019 level, which was the pre -pandemic peak, as the severity of thepandemic started declining in March. As a result, sales and earnings were higher than one year earlier a nd
exceeded the plan.
In April, this business started operating the Ohashi Kogen International Exchange Village in the city of Mimasaka

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

in Okayama prefecture as the designated contracted manager of this park. Adding this contract demonstrates theability of the Agricultural Park Business to use its park management expertise to increase the number of parks
managed.
Sales were 2,207 million yen, up 60.0% year on year (up 10.9% vs. plan), and there was a segment profit of 184
million yen, compared with a segment loss of 95 million yen in the first half of 2021 (up 60.3% vs. plan).
Overview of Business Results by Segment(Millions of yen)
Products
Human
Resources
Business
Services
Human
Resources
Business

Human
ResourcesandEducation
Business

Subtotal(Reference)First half of First half of First half of
2021
2022
2022
ResultPlan
ResultYear-on-year change
Vs. planAmount%Net sales

32,86437,98041,203

3,223

8,338

25.4%

Segment profit

1,468

665

1,901

1,236

433

29.5%

(Profit margin)(4.5%)(1.8%)(4.6%)Net sales

15,377

17,45020,651

3,201

5,274

34.3%

Segment profit

402

174

695

521

292

72.7%

(Profit margin)(2.6%)(1.0%)(3.4%)Net sales

48,24155,43061,855

6,424

13,61328.2%

Segment profit

1,871

839

2,597

1,757

725

38.8%

(Profit margin)(3.9%)(1.5%)(4.2%)Net sales

10,481

14,693

17,551

2,857

7,069

67.4%

Segment profit

400

(480)

1,587

2,068

1,186

296.5%

Real EstateBusiness

Real EstateBusiness(Profit margin)(3.8%)-(9.0%)

Information
andTelecommunications
Business

Information Net sales
andSegment profit
Telecommunications(Profit margin)
Business

4,944

5,148

4,594

(553)

(350)

(7.1%)

93

137

76

(60)

(16)

(18.1%)(1.9%)(2.7%)(1.7%)

Agricultural
Park
Business

Agricultural
Park
Business

Net sales

1,379

1,991

2,207

216

828

60.0%

Segment profit

(95)

115

184

69

279

-

(Profit margin)-(5.8%)(8.4%)Net sales
Total

65,047

77,264

86,208

8,944

21,16032.5%

Elimination or
corporate

181

522

183

(339)

1

1.0%

Operating profit

2,452

1,133

4,629

3,495

2,177

88.8%

(Profit margin)(3.8%)(1.5%)(5.4%)(2) Explanation of Financial Position
AssetsTotal assets increased 13,667 million yen from the end of 2021 to 110,936 million yen at the end of the second
quarter of 2022. This was mainly due to increases of 1,140 million yen in cash and deposits, 1,157 million yen innotes and accounts receivable-trade, 985 million yen in real estate for sale, 4,958 million yen in real estate forsale in process and 3,801 million yen in goodwill.
Liabilities
Total liabilities increased 12,275 million yen from the end of 2021 to 76,317 million yen. This was mainly due toincreases of 677 million yen in short-term borrowings, 2,262 million yen in accrued expenses and 9,183 million
yen in long-term borrowings.
Net assets
Net assets increased 1,391 million yen from the end of 2021 to 34,618 million yen, mainly due to increases of4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

1,160 million yen in retained earnings and 176 million yen in non-controlling interests.
Cash Flows
Cash and cash equivalents at the end of the first half of 2022 increased 1,140 million yen from the end of 2021 to
31,889 million yen.
Cash flows from operating activities
Net cash used in operating activities was 1,763 million yen. Main positive factors include profit before income
taxes of 4,740 million yen. Major negative factors include a 4,182 million yen increase in real estate for sale, a
438 million yen decrease in notes and accounts payable-trade and income taxes paid of 1,411 million yen.
Cash flows from investing activities
Net cash used in investing activities was 5,489 million yen. Main negative factors include payments of 1,145
million yen for purchase of property, plant and equipment and 4,165 million yen for purchase of investments inconsolidated subsidiary.
Cash flows from financing activities
Net cash provided by financing activities was 8,344 million yen. Main positive factors include proceeds of 14,184
million yen from long-term borrowings. Main negative factors include a decrease of 3,762 million yen in
short-term borrowings and dividends paid of 1,388 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
Consolidated sales and earnings were higher than planned in the first half of 2022. One reaso n was the receipt oflarge orders and orders for one-time projects in the core Human Resources and Education Business due tocarefully targeted and effective marketing activities. Higher productivity due to the use of subcontracting andtemporary placements of teams of workers, training programs, and the digital transformation also contributed tothe strong performance of this business. Furthermore, sales of some properties in the Real Estate Business werecompleted earlier than planned.
Consequently, the 2022 sales and earnings forecast has been increased to reflect first half performance that wasabove the forecast and the outlook for strong sales and earnings in the second half of 2022.
For more information, please refer to the press release titled “Notice of Differences between First-half Forecast
and Results of Operations and Revisions to Consolidated Forecasts” dated August 9, 2022.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of 2022
(As of Jun. 30, 2022)

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

30,74931,890Notes and accounts receivable-trade

15,706

16,864794

1,053

Real estate for sale

6,221

7,206

Work in process

126

115

Real estate for sale in process

28,82833,787

Other

3,663

3,746

(3)

(13)

86,08894,650

5,466

6,250

Goodwill

592

4,393

Other

184

212

Total intangible assets

776

4,606

Investment securities

1,425

1,496

Deferred tax assets

1,831

2,043

Leasehold and guarantee deposits

1,051

1,173

Merchandise and finished goods

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

Investments and other assets

Other

868

955

Allowance for doubtful accounts

(239)

(240)

Total investments and other assets

4,938

5,429

Total non-current assets
Total assets

11,18016,28597,269110,936

1,263

1,328

Liabilities
Current liabilities
Notes and accounts payable-trade
Accounts payable-real estate business

924

421

Short-term borrowings

25,45026,128

Accrued expenses

7,010

9,273

Advances received

1,539

2,141

Income taxes payable

1,584

2,281

Accrued consumption taxes

2,796

2,320

Provision for bonuses

105

315

Other

6,510

3,750

Total current liabilities

47,18547,96013,75422,938

172

182

2,380

2,863

547

2,373

16,85628,35764,042

76,317

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

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

(Millions of yen)
Second quarter of 2022
(As of Jun. 30, 2022)

2021(As of Dec. 31, 2021)
Net assets
Shareholders’ equity
Share capital

1,250

1,266

Capital surplus

1,449

1,456

Retained earnings

28,90830,069Treasury shares

(119)

(119)

Total shareholders’ equity

31,48932,673

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

15

6

Foreign currency translation adjustment

27

64

Remeasurements of defined benefit plans

(31)

(35)

11

35

93

100

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests

1,631

1,807

Total net assets

33,226

34,61897,269110,936

Total liabilities and net assets

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)(Millions of yen)First six months of 2022
(Jan. 1 – Jun. 30, 2022)

First six months of 2021
(Jan. 1 – Jun. 30, 2021)
Net sales
Cost of sales

65,04753,947

86,208
71,105Gross profit

11,10015,103

Selling, general and administrative expenses

8,648

10,473Operating profit

2,452

4,629

168

75

2

3

96

151

267

230

80
17

97
21

97

119

2,621

4,740

1
42

-

43

-

2,664

4,740

718

2,065

1,946

2,675

Non-operating income
Subsidy income
Income of support to investment in property andequipment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Casualty insurance income
Gain on extinguishment of tie-in shares
Total extraordinary income
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8

55

125

1,891

2,549

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Millions of yen)First six months of 2022
(Jan. 1 – Jun. 30, 2022)

First six months of 2021
(Jan. 1 – Jun. 30, 2021)
Profit

1,946

2,675

Valuation difference on available-for-sale securities

35

(9)

Foreign currency translation adjustment

23

55

Remeasurements of defined benefit plans, net of tax

1(3)

Total other comprehensive income

60

42

2,007

2,717

1,944

2,573

63

144

Other comprehensive income

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

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

(3) Quarterly Consolidated Statement of Cash Flows(Millions of yen)First six months of 2022
(Jan. 1 – Jun. 30, 2022)

First six months of 2021
(Jan. 1 – Jun. 30, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
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
Interest and dividend income
Loss (gain) on extinguishment of tie-in sharesInterest expenses
Loss on retirement of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in real estate for sale
Increase (decrease) in trade payables
Increase (decrease) in advances received
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Other, net

2,664
393
26
1

4,740
418
161
0

(3)

5

170
(9)
(42)
80
7
(369)
(273)
(6,612)
(267)
153
(682)
(1,433)
227
275

188
(6)
97
14
338
(243)
(4,182)
(438)
600
1,788
(395)
(3,176)(650)

Subtotal(5,695)(739)

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

9(83)(1,134)910

7(93)(1,411)472

Net cash provided by (used in) operating activities(5,993)(1,763)

(285)
(57)
(353)
(104)
(65)
(150)
150
(72)
(101)

(1)
1
(1,145)(14)(4,165)
(30)
(100)
3
(28)
(8)

Net cash provided by (used in) investing activities(1,040)(5,489)Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Proceeds from issuance of shares
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests

1,457
10,102(1,962)(1)
2(0)(1,775)(35)(3,762)
14,184(675)(2)
23(1,388)(34)

Net cash provided by (used in) financing activities

7,788

8,344

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investments in consolidated subsidiary
Purchase of investments in non-consolidated subsidiary
Payments for acquisition of businesses
Loan advances
Proceeds from collection of loans receivable
Net decrease(increase) in lease and guarantee deposits
Other, net

10WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

(Millions of yen)First six months of 2022
(Jan. 1 – Jun. 30, 2022)

First six months of 2021
(Jan. 1 – Jun. 30, 2021)
Effect of exchange rate change on cash and cash equivalents

21

Net increase (decrease) in cash and cash equivalents
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
Cash and cash equivalents at end of period

11

49

775

1,140

22,81730,748

111

-

92

-

23,79631,889

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Significant Subsidiaries during the Period
e-support, Inc., which was classified as a significant subsidiary of World Holdings, is no longer included in the
consolidated financial statements from the second quarter of 2022 because a reduction of capital took place onJune 1, 2022.
Dimples Co., Ltd. is included in the consolidated financial statements following th e purchase by World Holdingsof its stock on February 28, 2022, which is the first quarter of 2022. This change is not classified as a change in asignificant subsidiary.
World Style Co., Ltd., which was established on May 17, 2022 when a company was split into two comp anies, isincluded in the consolidated financial statements in the second quarter of 2022 even though this company is not a
specified subsidiary. The fiscal year of World Style differs from the fiscal year used by World Holdings. As aresult, the financial statements of World Style for the quarter that ended on March 31, 2022 are used as thefinancial statements for the second quarter of 2022. Adjustments required for consolidation have been made toreflect significant transactions occurring between March 31 and June 30, which is the end of the second quarter ofthe consolidated financial statements. These adjustments are expected to have a significant effect on the
consolidated financial statements for the year that includes the following quarter.
Creative Co.,Ltd. is included in the consolidated financial statements following the purchase by World Holdingsof its stock on June 30, 2022, which is the second quarter of 2022. This change is not classified as a change in asignificant subsidiary.
Wakabayashi Hozen Co., Ltd., which is not a specified subsidiary, became a consolidated subsidiary in the firstquarter of 2022. In the second quarter of 2022, Wakabayashi Hozen and its subsidiary Wakabayashi Fudosan Co.,
Ltd. were removed from the scope of consolidation because these companies were absorbed by World ResidentialCo., Ltd. on May 2, 2022 and subsequently dissolved.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
The tax expenses are calculated by first reasonably estimating the effective tax rate after the application of tax
effect accounting with respect to profit before income taxes for the fiscal year in which the quarter under review
falls, and multiplying that rate by the profit before income taxes for the quarter under review. However, World
Holdings uses legally stipulated effective tax rates to calculate tax expenses when the use of estimated tax rates
produces a clearly irrational result.
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 the first quarter of 2022. Based on this standard, revenue expected to be received
in exchange for the provision of goods and services is recognized when the control of the promised goods andservices is transferred to customers.
For the application of the revenue recognition accounting standard, in accordance with the transitional 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 the first quarter of 2022, is added to or subtracted from retained
earnings at the beginning of the first quarter of 2022. The new standard is then applied beginning with thisamount of retained earnings. However, World Holdings has applied the method prescribed in paragraph 86 of thisstandard and has not retrospectively applied the new accounting policy to contracts in which almost all revenue
12

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

were recognized in accordance with the previous treatment prior to the beginning of the first quarter of 2022. In
addition, due to the application of the method prescribed in paragraph 86-1 of the new standard, for contract
revisions made prior to the beginning of the first quarter 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 thefirst quarter of 2022.
The effect of this change on profit in the first half of 2022 is insignificant. There is no cumulative effect of theapplication of this standard on retained earnings at the beginning of the current fiscal year.
Furthermore, in accordance with the transitional treatment prescribed in Paragraph 28-15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), World Holdings has notpresented information on revenue from contracts with customers broken down for the first half of 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 the first quarter of 2022, and has applied the new accounting policies set forth by
the Accounting Standard for Fair Value Measurement prospectively in accordance with the transitional treatmentin 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 quarterly consolidated financial statements.

Segment Information
I. First six months of 2021 (Jan. 1 – Jun. 30, 2021)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Services
Human
Resources
Business

32,864

Subtotal

Adjustments(Note 1)

Amounts shown onquarterly
consolidated
statement of income(Note 2)

1,379

65,047-65,047

9

3

348

(348)

-

10,486

4,954

1,382

65,396(348)

65,047

400

93

(95)

2,270

181

2,452

Real EstateBusiness

Information
andTelecommunications
Business

Agricultural
Park
Business

15,377

10,481

4,944

243

86

4

Total

33,10815,463

Segment profit(loss)

1,468

402

Net sales
Sales to externalcustomers
Inter-segment
sales andtransfers

Products
Human
Resources
Business

Notes: 1. The 181 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 13
million yen, and 168 million yen in corporate expenses that cannot be allocated to any of the reportable segments.
Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of thereportable segments.
2. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Goodwill was booked in the “Products Human Resources Business” segment as World Holdings has acquired
the shares of Creation View Co., Ltd. and made it a consolidated subsidiary. The event caused the amount of
goodwill to increase by 535 million yen during the first six months of 2021.
Significant gain on bargain purchaseNot applicable.
13

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2022

II. First six months of 2022 (Jan. 1 – Jun. 30, 2022)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Products
Human
Resources
Business

Services
Human
Resources
Business

Real EstateBusiness

Information
andTelecommunications
Business

Agricultural
Park
Business

Subtotal

Amounts shownon quarterly
Adjustments
consolidated(Note 1)statement ofincome(Note 2)

Net sales
Sales toexternal
41,203
20,651
17,5514,594
2,207
86,20886,208customers
Inter-segment
sales and
274
90
67
27
7
468
(468)
transfers
Total
41,47820,742
17,6194,621
2,215
86,676(468)
86,208Segment
1,901
695
1,587
76
184
4,446
183
4,629
profitNotes: 1. The 183 million yen adjustment to segment profit includes elimination for inter-segment transactions of -166
million yen, and 349 million yen in corporate expenses that cannot be allocated to any of the reportable segments.
Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of thereportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated statement ofincome.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Goodwill was booked in the “Products Human Resources Business” segment as World Holdings has acquired
the shares of Dimples Co.,Ltd. and made it a consolidated subsidiary. The event caused the amount of
goodwill to increase by 691 million yen during the first six months of 2022.
Significant gain on bargain purchaseNot applicable.
3. Information related to changes in reportable segments
Changes in reportable segments
In the first quarter of 2022, World Holdings revised reportable segments as follows. In previous years, thereportable segments were Factory Staffing, Technology Staffing, R&D Staffing, Sales & Marketing Sta ffing,
Real Estate, and Information and Telecommunications. Based on the goal of making services another major
business category in addition to the current core manufacturing category, the Human Resources andEducation 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 the Agricultural Park Business. This business o perates large
nature parks for the purpose of making a significant contribution to socie ty regarding the environment.
Segment information for the first six months of 2021 is shown based on the segment classification after thechange.

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.

14