FY2017 Second Quarter Financial Results
第2四半期

August 21, 2017 (Mon.)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0I. Summary of FY2017 Second Quarter Financial Results
II. FY2017 Business Forecasts
III. Progress of New Mid-term Managerial Plan 2021

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

11. Summary of FY2017 Second Quarter Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Second Quarter Summary There was a significant increase in net sales, operating income, ordinary income
and income.

Unit: Million yen, %FY2016/2Q
actual

FY2017/2Q
actualNet sales

41,608Operating income

YOY

Full-year
budget*Ratio to fullyear
budgetChangePct. Change

56,853

15,245

36.6

123,846

45.9

2,111

2,981

869

41.2

6,270

47.5

Ordinary income

2,088

2,950

862

41.3

5,936

49.7

Net income attributable toowners of parent

1,199

2,061

861

71.8

3,519

58.6

*Announced on February 13, 2017

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3

Sales by Business Segment


There was an increase in income in all segments in Human Resources and Education Business; in particular, there was asignificant increase in both sales and profit in Factory Business.
Real Estate Business and Information and Telecommunications Business have performed favorably.
We have incorporated our agricultural park business performed by Farm Co., Ltd. into Others.

FY2016/2Q
actualUnit: Million yen, %(Profit margin)

FY2017/2Q
actualChangeFactory BusinessTechnology Business

Human Resources
andEducation
Business

R&D Business
Sales & Marketing
Business
Total (reference)

Real Estate Business

Real Estate BusinessInformation andTelecommunications
Business

Information andTelecommunications
Business

Other

OthersTotal

Net sales

41,60818,614
1,401
5,996
642
3,084
271
3,033
138
30,7292,453
20,594
1,290
4,217
150
1,312
70
56,853Elimination or
corporate

△850

△982

Operating income

2,111

Net sales

13,857

Segment income

948

Net sales

4,912

Segment income

538

Net sales

2,641

Segment income

255

Net sales

2,565

Segment income

147

Net sales

23,977

Segment income

1,890

Net sales

13,346

Segment income

934

Net sales

4,056

Segment income

131

Net sales

227

Segment income

5(6.8%)(11.0%)(9.7%)(5.8%)(7.9%)(7.0%)(3.3%)(2.5%)(5.1%)

2,981(7.5%)(10.7%)(8.8%)(4.6%)(8.0%)(6.3%)(3.6%)(5.3%)(5.2%)

Full-year
budget*YOY(Profit margin)(Profit margin)

Ratio to fullyear
budgetPct. Change

4,756

34.3

34,299

452

47.7

2,242

1,084

22.1

11,818

104

19.3

940

442

16.8

6,400

15

6.1

582

468

18.3

6,500

△9

△ 6.3

397

6,751

28.2

59,01854.3(6.5%)

62.5
50.7(8.0%)

68.3
48.2(9.1%)

46.5
46.7(6.1%)

34.8
52.1(7.1%)

563

29.8

4,163

7,248

54.3

50,685

355

38.1

3,702

160

3.9

10,198

18

13.9

245

1,084

476.1

3,943

64

-

36

15,245

36.6

123,846

45.9

△132

15.5

△1,877

52.4

869

41.2

6,270

58.9
40.6

(7.3%)

34.8
41.4(2.4%)

61.4(0.9%)

194.9

33.3

(5.1%)

47.6*Announced on February 20, 2017

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4Factory Business<Sales composition by business segment and the number of staff>
 Our strengthened employment organization and human resource training system have been functioning
effectively and we have achieved the fluidization of human resources. Therefore, we have won orders andsmoothly started large projects at favorable conditions.
 In the logistics field, our large center operation track record and productivity improvement are valued
highly and we are continuing to expand here.
◆ Sales composition by business segment(Million yen)

20,00018,614

Up 34.3%
15,00013,857

YoY(Based on
monetary
amount)

17.0%

+5.1％

4.1%
7.6%

△16.5％+61.7％

16.6%+41.2％

5.0%+36.9％

29.6%+54.0％◆ Segment income◆ Variation in the number of staff (3-month average)(Million yen)

(Persons)

1,500

1,401

Up 47.7%

6.5%
6.1%

3,528

1,000

10,000

948

8,567
8,000

5,000

1,348
1,343
585

6,000

15.4%
4.7%

12,761

12,00021.2%

10,00014,000

500
4,000

7,885

6,639

25.1%

2,000
21.0%

20.1%

2016 2Q

2017 2Q+24.8％

0

0
Electric & Electronics
Automobiles
Machinery
Others0
2016 2Q

2017 2Q

Logistics
Semiconductors
Environment & Energy

2016 2Q
2017 2Q
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

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5Technology Business<Sales composition by business segment and the number of staff>

Our assignment pace, in which we have expanded the employment of newly graduated engineers beyond our plans, has
contributed to an increase in sales and profit.
We have launched the new Design Center Tokyo to train machine design engineers and expanded our curriculum for IT
engineer training due to an expansion in the employment, training and assignment of those without experience.
We have expanded our service areas and optimized personnel deployment in the repair section.

◆ Sales composition by business segment(Million yen)

6,000
5,000

5,996
Up 22.1%
4,912

YoY(Based on
monetary
amount)32.8%◆ Segment income(Million yen)

3,000

2,500

6.0%
5.0%

+22.0％+26.0％

15.9%+18.8％

2,037

642+43.3％

28.1%
6.0%
4.8%

(Persons)

800

600
4,000

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

2,000

Up 19.3%
538

1,749

309

246

1,500
400

987
772

16.3%

1,000

2,000
200
1,000

44.8%

40.3%

2016 2Q

2017 2Q

500

+9.6％

0

0

731

741

2016 2Q

2017 2Q

02016 2Q

2017 2Q

OthersAutomobiles
Machinery
Information and telecommunications service
Semiconductors

Construction, 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

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6

R&D Business<Sales composition by business segment and the number of staff>We have optimized contract charges by visualizing the skills, experience and evaluation of research employees.
We have secured excellent newly graduated research employees by setting stricter employment standards to achieve
early assignment with favorable conditions.
 DOT World Co., Ltd. strengthened the employment of monitor employees by employing and training new graduates
and those without experience.

◆ Sales composition by business segment(Million yen)

3,500
3,000

Up 16.8% 3,084
2,641

YoY
(Based on
monetary
amount)22.0％◆ Segment income◆ Variation in the number of staff (3-month average)(Million yen)

(Persons)

300

1,000

255

Up 6.1%

271

2,500

85

200

23.3％

600

2,000
44.6％

1,500

90

876
800

+10.1％

995+12.8％

905

400

46.2％

791

100
1,000

200
500

30.5％

33.4％

+27.8％

00
2016 2Q
Pharmaceutical/biotechnology

2017 2Q
Chemical02016 2Q

2017 2Q

2016 2Q
R&D staff

Clinical2017 2Q
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

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7

Sales & Marketing Business<Sales composition by business segment and the number of staff>
 We are steadily expanding sales staff dispatch by expanding the jobs and industries
we handle.
 We have improved our human resource management and assignment abilities. This
has led to an improvement in the operating efficiency per operation staff member.
◆ Sales composition by business segment(Million yen)

3,500
3,000

Up 18.3%

3,033

YoY
(Based on
monetary
amount)2,000◆ Variation in the number of staff (3-month average)(Million yen)

(Persons)

200

3,000

2,502
2,500

2,565
2,500

◆ Segment income

150
36.4％

147 Down 6.3%
138

+13.2％

2,200

2,000

1,002

38.0％

100

1,500

1,074

1,500
63.6％

1,000

+21.4％

1,000
50

1,500

62.0％

500

500
0

0
2016 2Q

2016 2Q

2017 2Q

2017 2Q

1,125

02016 2Q

2017 2Q

Operator/light-duty worker dispatch

Operator/light-duty worker dispatch
This term, our original names “CB Division” and “OCS Division” wererenamed “Sales staff dispatch” and “Operator/light-duty worker
dispatch,” respectively.

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

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8Real Estate Business<Sales composition by business segment and major activities>
 Development-related business is performing steadily despite the deviation from planning in business landhandover.
 Single family housing business, mainly involving Hoei Construction Co., Ltd., is going as planned. We
have opened a new model house in Tomakomai to expand our area in Hokkaido.
 In prefabricated houses-related business, inquiries for a new product of “Toilet House” have beenfavorable and we have increased orders in the Kyushu area that we expanded into in this term.
◆ Sales composition by business segment(Million yen)

25,00020,59420,00015,000Up 54.3%

4.1%+29.9％

28.0％+30.5％◆ We opened a new model house in Tomakomai
to expand our area in Hokkaido.

(Million yen)

1,500

1,290

Up 38.1%
1,000

934

13,346
4.9%

10,000

YoY(Based on
monetary
amount)◆ Segment income

15.5%

33.1％

500
5,000

52.4%

◆ The new product “Toilet House” developed+30.5％by Omachi World Co., Ltd.

62.0%

0
2016 2Q

2017 2Q

02016 2Q

2017 2Q

Prefabricated houses-related
Renovation-related
Single-family housing
Development-related*Single-family housing taken into account from 1Q of 2017

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9Information and Telecommunications Business<Sales and major activities>
 We are enjoying steady performance by continuing to strengthen our sales capabilities throughenvironment improvement in terms of the relocation/enlargement of stores and education/training of sales
staff.
 In terms of operations aimed at corporations, we have increased proposals for office comprehensive cost
reduction solutions and LED lamps are performing steadily in our existing products.
◆ Sales for each target(Million yen)

5,000

4,056
4,000

Up 3.9%

12.8%

4,217
12.4%

◆ Segment income
YoY(Based on
monetary
amount)+0.5％◆ Development of stores that would be chosen by customers(Million yen)

200

150

Up 13.9%

150

131

3,000

◆ Enrichment of products for corporations

100
2,000
87.2%

87.6%

LED lamps+4.5％

Industrial air-conditioners

Surveillance camera

50
1,000

0

0
2016 2Q

2017 2Q

Individual

Corporation

2016 2Q

2017 2Q

Electricity charge
Combined machines

Business phone
Communications charge

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10Other<Sales and major activities>

Advan Corp Inc., which runs PC schools, has expanded its engineer training curriculum jointly with our Technology
Business.
We incorporated the agricultural park business performed by Farm Co., Ltd. in the second quarter. The high season of April
and May was blessed with great weather and so performance was strong. We are working on improving customer
satisfaction and the average amount obtained from each customer with appropriate personnel deployment.

◆ Sales◆ Segment income◆ Technical training based on the collaboration
between Advan and the Technology Business(Million yen)

(Million yen)

1,400

1,312

80

70

1,200
60

1,000
800

Up 476.1%
40

600
400

◆ We entered into the agricultural park businessin the second quarter.

Up 1124.0%

20

227
200

5

0

0
2016 2Q

2017 2Q

2016 2Q

2017 2Q*We newly consolidated Farm Co., Ltd.
from the second quarter of FY2017.

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11

Financial Condition B/S Through the acquisition of new subsidiaries, fixed assets, current liabilities, etc. grew.
Total assets(Million yen)

Current assets

100,000
80,00079,02573,392・Increase in real estate for sale

60,000
Fixed assets

40,00066,996

100,000
80,0009,828 (+3,432)

・Increase in property, plant and equipment*

2,414 million yen*Due to the acquisition of subsidiaries

6,395

9,828

End of FY2016

End of FY2017 2Q

Fixed assets(Million yen)

1,528 million yen

69,19720,000069,197 (+2,201)

・ Increase in goodwill

643 million yen

Current assets

Total liabilities/net
assetsLiabilities

79,02573,39262,549 (+4,620)

・ Increase in short-term debt*

4,216 million yen*Money to purchase real estate for sale and acquire shares of subsidiaries

60,00047,82644,01840,00020,0000

Net assets

13,90914,722

15,464

16,476End of FY2016

End of FY2017 2Q

Net assets

Fixed liabilities

16,476 (+1,012)• Increase in retained earnings

784 million yen

Current liabilities

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12Cash Flows Operating CF was plus 1,401 million yen, investment CF was minus 2,012 million
yen, and financial CF was plus 852 million yen.
(Million yen)

20,000Operating CF

18,000＋1,401

16,00014,00012,000△2,012・Income before income taxes
・Decrease in real estate for sale・Decrease in deposit
・Income taxes paid
・Income taxes refund＋852

Cash andcash
equivalents
at thebeginningof the term

Cash andcash
equivalents
at the endof the term

15,764

16,031

10,0008,000

3,281 million yen
1,332 million yen△ 1,134 million yen△1,814 million yen
750 million yen

Investment CF

・Expenditure due to the acquisition of subsidiary shares withchanges to the extent of consolidation:△2,022 million yen
・Expenditure through the acquisition of property, plant andequipment△316 million yen
・Proceeds from collection of loans
170 million yen

6,000
Financial CF

4,000

2,000

・ Net increase in short-term debt
2,896 million yen
・ Proceeds from long-term borrowing
3,634 million yen
・ Expenditure through the repayment of long-term debt
△4,305 million yen
・ Payment of dividends△1,258 million yen＋266 million yen

0
End of Dec. 2016

Operating
営業 CF

Investment
投資 CF

Financial
財務 CF

End of FY2017 2Q

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13II. FY2017 Business Forecasts

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14

Summary of FY2017 Business Forecast
 Sales are estimated to grow for the 8th consecutive term. We will fortify the base for the
new mid-term managerial plan.

FY2016 actual

FY2017
forecast

Unit: Million yen, %Change from forecast
ChangePct.
ChangeNet sales

94,334

123,846

29,512

31.3

Operating income

7,407

6,270

△1,137△ 15.4

Ordinary income

7,306

5,936

△1,369△ 18.7

Net income attributable to

4,192

3,519

△672

△ 16.0250.92210.6363.2△40.29△ 16.1△12.1△ 16.1owners of parent

EPS (yen)
Dividend per share (yen)75.3

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15

Business Forecast by Segment
 Sales are estimated to grow in all segments.
 New business and Farm Co., Ltd. will be incorporated into Others.

FY2016 actual

Unit: Million yen, %(Profit margin)

FY2017 forecast

Change from forecast(Profit margin)

ChangeFactory BusinessNet sales
Segment income

Human
ResourcesandEducation
Business

Technology BusinessNet sales
Segment income

R&D BusinessNet sales
Segment income

Sales & Marketing
Business
Total (reference)

Net sales
Segment income
Net sales
Segment income

Real EstateBusiness

Real Estate BusinessInformation andTelecommunications
Business

Inform ation andTelecom m unications
Business

Other

Others

Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales

Total

Elimination or corporate

Operating income

30,111
2,080
10,334
1,015
5,533
571
5,654
296
51,633
3,964
34,481
5,171
7,742
244
476
17
94,334△1,9907,407(6.9%)(9.8%)(10.3%)(5.3%)(7.7%)(15.0%)(3.2%)(3.7%)(7.9%)

34,2992,242
11,818
940
6,400
582
6,500
397
59,0184,163
50,685
3,702
10,198245
3,943
36
123,846△1,877
6,270

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved(6.5%)(8.0%)(9.1%)(6.1%)(7.1%)(7.3%)(2.4%)(0.9%)(5.1%)

4,187
162
1,484
△74
867
10
845
100
7,384
198
16,204△1,468
2,455
0
3,467
18
29,512(―)△1,137

Pct. Change

13.9
7.8
14.4
△7.4
15.7
1.9
15.0
33.9
14.3
5.0
47.0
△28.4
31.7
0.3
727.8
103.9
31.3
(―)
△ 15.416

Shareholder Returns

Aim to achieve a payout ratio of 30%(Yen)

Dividend per share

80.0
70.0

75.3
(Yen)

*Variation of our share price from the beginning of the year

63.2
60.0
50.0

45.7

40.0

30.0

23.7

20.0
10.0

4.33

4.5

4.5

FY2009FY2010FY20118.5

10.0

FY2012FY20130.0
FY2014FY2015FY2016FY2017(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.

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17III. Progress of New Mid-term Managerial Plan 2021

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved18Outline of the New Mid-term Managerial Plan 2021 and Primary Measures in 2017

<New Vision>
Pursuit of evolved systems in which people can exert their abilities“To aim to become a company that can grow stably with enhanced competitiveness and sociality”<First half of the period of the mid-term managerial plan>
To fortify our management base, and expand our businessin existing fields and peripheral ones

<Second half of the period>
Foray into new business fields

Primary measures in 2017
Human Resources and Education
Business

Real Estate Business・Enrichment of a careerdevelopment system for developing
a human resources platform・To collect data on the preferencesof job seekers, accept a broad
range of workers through one-stop
services, and develop a base formutualmatching

・To strengthen and launchbusinesses (related to renovationand single family housing) that canrecoup investments in a shortperiod of time・Business development while
grasping the field and timing
where development-related profit(ROI) would be maximized.

Information and Telecommunications
Business

・To improve the environment ofexisting cellphone shops and open
new excellent stores
・To establish a service ofproviding corporations withcomprehensive cost reduction
solutions via our various products

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19Mid-term Managerial Plan: First Half Summary

Real Estate BusinessInformation andTelecommunications
Business

Amendments to laws
(Dispatch Act and Labor Contract
Act)
Sudden jump in the job openingto-application ratio(Declining labor force)

Sudden jump in prices(Land, material and personnel
expenses)
Emergence of regional
differences(Sales situation, prices, etc.)

Market saturation(Decrease in shipments)
Intensification of competition(Competition due to the threemajor carriers, sub-brands andMVNO)

Decline in the competitiveenvironment(Elimination of competitors’
facilities)
Population decrease（Decrease in the number ofvisitors）

Compliance
Human resource
employment

Market adaption
Regional environment
adaption

Stores that can beatthe competition
New productdevelopment

Secure visitors
Capital investment

Human resource
teams+
Mobilization

Stable businesspromotion

Human Resources andEducation Business

Environment

Challenges

Areas ofconcentration

Three major carriers

Other

Drafting and executionof a regeneration plan

We have reaffirmed the degree of accuracy of our mid-term managerial plan asassumed together with environmental changes, challenges and policy movements
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved20Human Resources and Education BusinessChanges in the Market Environment and the Impact on the Human Resources Industry
Acceleration in the Shortfall of Human Resources

Increase in the Reliance on the Human Resources Industry

Effective Job Opening-to-Application Ratio
1.51-fold

2

Manufacturing Human Resources Industry Market
35000
Dispatch of engineers

30000

Undertaking manufacturer dispatch

25000

1.5

20000

1

Ratio
beyond the bubble period
0.502013-06-01

15000 Increase to more than 3 trillion yen by 2020
10000
5000

2014-06-01

2015-06-01

2016-06-01

2017-06-01

2015

2016 forecast

2017 forecast

2018 forecast

2019 forecast

2020 forecast

Source: Yano Research Institute “Current situation and outlook of HR business in 2016”

Source: Ministry of Health, Labour and Welfare “Situation of general job placement service” in June 2017

Business environment

0Project changes

Requirements*Amendments to laws

*Larger*More flexible response*Lack of HR*Higher skills*Provision of better HR*Accelerated outsourcing*Shorter delivery times*Business conducted by team

Expansion in needs for human resource companies that have reliably
perceived environmental changes
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21

Human Resources and Education BusinessState of Progress on the Mid-term Managerial Plan
Efforts to Secure Human Resources and Support Projects

Recruitment

Cultivation

Organization＝Extensive human resource
employment＝＝Training and assignment of highquality human resources＝＝Organization of trained humanresources＝We have developed more than 100 training
programs
Number of business leaders who have completed
training: 480（As of the end of June 2017

Number of registered personnel: 19,365(As of the end of June 2017; including
those accepted by other companies)

Annual number of workers
employed: 9,983
Of these, about 4,000 workers areshort-term operators (e.g. S&M)
(2016 results)

Training
programs

R&D
Technology

FC
S&M*Extensive business areas*Significant expansion in the employmentof new graduates*Construction of a consortium*Construction and provision of
attractive workplaces*Attractive roadmap*Training of organization managementhuman resources*Training of professional humanresources*Training of specialist human resources

New fields
New contract
proposals*Advance into even more advanced areasand higher skill fields*Organization by business/field*Human resource development by OJT

Achieve the construction of a foundation necessary for future growth
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22

Human Resources and Education BusinessState of Progress on the Mid-term Managerial Plan
Construction of a Technical Training Foundation＝＝＝ Skill and career enhancement + Expansion of employment standards ＝＝＝

Mechanism Development＝Career path
construction ＝Infrastructure Development＝Teaching material
development＝＝Educational facilities＝Formulation of careerplans for each individual

Beginner operator

Leaders andmanagers
Engineers
Skilledtechnicians
Manufacturer
employees*Employee growth roadmaps*Improvement of the education structure*Launch of educational software jointly
developed with ADVAN*Opened Design Center Nagoya (May 2016)*FC Technical Center (May 2016)*Opened Design Center Tokyo (June 2017)(Skills and knowledge of maintenance,
preservation and equipment operation)(Skills and knowledge of three dimensional CAD)

Total number of trainees: 233(As of the end of June 2017)

Promote the further enhancement of content and expansion of fields
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23

Human Resources and Education Business<Response to changing market needs>

Existing Needs

Future Needs

Secure human resources with“mobilization”“Fluidity of skilled human resources”
and “human resource teams”＝Ability to assemble the necessary
human resources and number ofworkers by a deadline＝＝High quality operation abilities through thefluidity of skilled human resources in teams＝＝Mobilization of appropriate operators in atimely manner＝A
Manager
Skilled human resourcesBC, etc.

Manager
Skilled human resources

It is essential to have a training
environment for management + skill
education

Operators
Operators

Foster the ability to bring together teams
and smoothly run offices

Fluidity(Maintenance and preservation/
on-site leaders)

Mobilization

Construct a mechanism
capable of organization
management

Recruitment/Mobilization

Construct an organization hierarchy withhuman resource development

Develop a lecture and human resource
system to match employees (e.g. segment
and years of experience)“From an improvised employee group to an arranged fluid human resource organization”
The strength of human resource fluidity functions turns into added value

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

24

Human Resources and Education Business
Our Competitive Advantage
Develop expansion into new areas centered on a human resource platform with the “ability to respond”

It is possible to implement various measures for our over 19,000 registered workers

Human Resource Platform*

Sales Functions＝New areas＝Proposals to expand areas
with good quality humanresources

Human resource training=Ability to respond
Teams(Added value)
Fluidity

Employment and Management Functions

Sales Functions＝Suitable compensation＝Suitable price negotiation
backed by actual results

Employment conditions: Employment under favorable conditions

Training investment: Expansion of the training environment＝Ability to turn out diverse human resources＝*Human resource platform: Common skills and skill areas specialist group

Achieve further expansion into advanced areas/skills and new proposals

Achieve a sustainable growth cycle with the human resource platform
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

25Real Estate BusinessState of Progress on the Mid-term Managerial Plan
Expansion of Business Areas

Changes in the Composition Ratio

Expansion of Areas

Stable management

Capital turnover rate improvement

Expansion strategy by region

Development-related business sales
ratio
96.5%→62.5%(2014) (2016)

Development across Japan

Expansion into four businesses

Condominiums

Renovation

Condominiums
Single family
housing
Lease and rental(Prefabricatedhouses)Development-related

Renovation-related : Mikuni
Lease and rental-related:
Omachi World
Single family housing-related:
Hoei Construction

Other

Development to business with a short
recover period
It is possible to optimize the handovertiming of development-related
business taking into account ROI
Construction of a fundraising structurein the real estate segment

Clarification of target regions
Development-related: Main cities
Single family housing-related: Main cities
Renovation-related: Development across Japan
Lease and rental-related: Development acrossJapan

Reliable progress on building a structure for stable management
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

26Real Estate Business
Property Examples■Company developed condominium building■ House property example (Hoei Construction)

Original brand “Challenge 999”

■ Renovation examples

ONE PARK RESIDENTIAL TOWERS<Miyagi Prefecture>

Before renovation

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

After renovation

27

Real Estate BusinessWe are promoting steady real estate business without enlargement
Basic Strategy of Existing
Businesses

Expansion into New Fields

Stable management
We will make all newly launchedbusinesses profitable within two years
Development
Renovation

Single family
housing
Lease and rental(Prefabricatedhouses)Supply on a reasonable
scale
Sales and high profitability type:1,000 condominiums
1,500 single family houses

Sales Composition
Development-related
business sales ratio

53.7%(2021 plan)

46.3%<How to think of M&A strategy>”

53.7%

Sales and medium profitability type:1,500 renovated units

M&As ← 2 years → Reform →→ Stable growth
We will achieve fast growth businessdevelopment and low loss segment
construction with M&As through theacquisition of businesses that will become“seeds” possessing human resources andexpertise.

■Development-related ■Other

We will operate business on a reasonable
scale to maximize profit and control
excessive investment. We will not look to
unreasonably increase in size.

We will promote our development
ratio with the 50 to 59% range
serving as our guide by 2021.

Investment in area expansion based on stable existing business
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved28

Information and Telecommunications BusinessState of Progress on the Mid-term Managerial Plan
Scrap

Build (Expansion of Areas)

Expansion of Products

Concentrate on
excellent stores

Expand new areas

Expand corporate
sales

Promote an increase indirectly managed stores inexisting and new areas

No. of LED sales:
More than 35,000 per year
(FY2016 results)

No. of directly managed stores:
65 → 33
Improved profit:
4 million yen → 245 million yen(Results in FY2015 → As of the second
quarter in 2017 for both)

SHOP

SHOP

SHOP

SHOP

Comprehensive cost
reduction solution products
LED lamps

Combinedmachines

Industrial airconditioners

Smartphones

Consumables
Water servers

SHOP

SHOP

SHOP

Business phone
UTM・server

Close unprofitable storesTransfer of human resources to
excellent stores
Significant improvement in our
profit ratio

Start selection ofdevelopment areas
Start M&A target dealer
investigation

PC
Internetconnection
SurveillancecameraOther

Expand products to respondto a reduction in office costs
Training and development ofcorporate sales humanresources

We are making steady progress on preparations toward expansion to be No. 1 in Kyushu.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved29

Information and Telecommunications BusinessWe have an expansion strategy that recognizes there is a transition phase from points to aspects
Construction of the No. 1 Store Network

Regional share monopoly with adominant strategy
Covers the market share of Fukuoka Prefecture with a store network
We will ultimately increase our market share taking into view the entire
Kyushu region

Community-based Corporate Sales

Cooperation with financial institutions, etc.
Full support within the Kyushu area from SMEs to large
customers
Local
company

SHOP

BANK

WHD
SHOP

SHOP

Our
company

Alliance

Financial
institutions

Consultation/
info. provision

A

B

C

SHOP

Provision of solutions and services

We will aim to discover acquisition target stores in thevicinity and increase stores by advancing ourmonopolization of the market share through close store
formation in areas where we have opened stores.

・・・We will look to be the number one office support company in the
Kyushu area by building a community-based sales structure
focused on SMEs through cooperation with financial institutions
with strengths distinctive of local areas.

Build reliable business foundations toward our second growth phase
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30

Others
State of Progress on the Mid-term Managerial Plan
Advan
Expansion in the number of students

No. of students:
600
No. of schools: 10

Farm
Factual investigation for revitalization

No. of visitors: Over 430,000
No. of facilities: 9(As of the end of June 2017)(As of the end of June 2017)
700
Shinshu-Shiojiri Agricultural Park
Tirolean Forest

600

Akagi Plateau Ranch
Kronenberg

500

Comorebi
Morino Ibaraido

Yodel Forest

400
300

Manufactures and sells its own
sausages, confectionaries and
beer.

200
100

Chiba Zoological Park
Fureai Dobutsu-no-sato

Hibikinada Green Park

Shiga Agricultural Park
Blume-no-oka

Sakai Greenery Museum
Harvest Hill

0
FY2015FY2016 FY2017 2Q

Hold seminars to acquire students
Acquire students through softwaredevelopment
Cooperate with the Technology
Business

Okayama Agricultural Park
German Forest Kronenberg

Investigation of facility management, customer
response and necessary investment content
We will move to the investment stage after
formulating a plan

Establishment of scale as a segment centered on Farm
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved31Quantitative Targets
Operating income

Sales(Million yen)

(Million yen)
250,000

2021 (Planned) 12,000
Net sales: 200 billion yen
Operating income: 10 billion yen

10,000200,0002017 (Planned)
Net sales: 123.8 billion yen
Operating income: 6.2 billion yen

8,000

150,0002016
Net sales: 94.3 billion yen
Operating income: 7.4 billion yen

6,000

100,000
4,000
50,0002,000

00FY2016
2016年

FY2017
2017年

Factory
ファクトリー事業
Business
Others
その他事業

FY20182018年
Technology

テクノ事業
Business
Real Estate

不動産事業
Business

FY20192019年

FY20202020年

FY2021
2021年

R&D
Business
R&D事業

S&M Business
S&M事業

Information andTelecommunications Business

Operating income
営業利益

情報通信事業Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

32

Appendix

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

33

Budget Progress by Segment: Human Resources and Education BusinessWe have exceeded our budgeted sales and segment income in all segments
Factory BusinessTechnology Business

R&D Business

Sales & Marketing Business

4Q
3Q
2Q
1Q
FY2016
昨年度

Budget
予算

FY2017
今年度

We have smoothly launched large
projects through the fluidization ofhuman resources to greatly
exceed our budget.

FY2016
昨年度

Budget
予算

FY2017
今年度

The number of employments andassignment pace in terms of newly
graduated engineers greatly exceededthat of the previous year. We train those
without experience with an expansion of
our Design Centers and Java training.

FY2016
昨年度

Budget
予算

FY2017
今年度

We are concentrating on securing
excellent human resources by making
our employment standards stricter. We
have optimized our contract charges byvisualizing the skills of research
employees.

FY2016
昨年度

Budget
予算

FY2017
今年度

We have improved the operational
efficiency of registrants by
expanding the jobs/industries we
handle and improving our humanresource management/assignment
abilities.

4Q
3Q
2Q
1Q
FY2016
昨年度

Budget
予算

FY2017
今年度

FY2016
昨年度

Budget
予算

FY2017
今年度

FY2016
昨年度

Budget
予算

FY2017
今年度

FY2016
昨年度

Budget
予算

FY2017
今年度*Upper panel: sales, lower panel: segment income

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

34

Budget Progress by Segment: Real Estate Business, Information and Telecommunications Business and Other

As for Real Estate Business, delivery of real estate in 1Q was postponed till the second half or later, but delivery of the other realestate helped improve performance slightly.
As for Information and Telecommunications Business, profit exceeded the budget thanks to the stable operation via the largest
store network in Kyushu.
Agricultural park business was incorporated into Others in 2Q.
Real Estate BusinessInformation and Telecommunications Business

Other

4Q

3Q
2Q
1Q
FY2016
昨年度

Budget
予算

FY2017
今年度

Although we have postponed the handover ofreal estate in the first quarter to the third quarterand beyond, we have somewhat recovered byhanding over different real estate.

FY2016
昨年度

Budget
予算

FY2017
今年度

FY2016
昨年度

Budget
予算

FY2017
今年度

FY2016
昨年度

Budget
予算

FY2017
今年度

We have made steady progress withefficient store management because of
excellent human resources in our
excellent store network.

Although the number of visitors is almost asplanned, the average amount from eachcustomer is below what we planned, so we
did not achieve our budgeted sales andprofit.

FY2016
昨年度

FY2016
昨年度

Budget
予算

FY2017
今年度

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

Budget
予算

FY2017
今年度*Upper panel: sales, lower panel: segment income

35

Variation of Sales and Operating Income

and Education
人材・教育
Human Resources

情報通信
Information andTelecommunications

Real Estate
不動産

Other
その他

Operating Income
営業利益150,000

10000

120,000

8000

90,0006000

60,0004000

30,0002000

00

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved36For More Information

Shohei Shigematsu

Public Relations and Investor Relations Department
Corporate Planning Division
WORLD HOLDINGS CO., LTD.
TEL 03-3433-6005
E-MAIL irinfo＠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 salesof our stock. Furthermore, opinions, forecasts and other information not based on historicalfacts represent our judgments at the time this presentation was prepared. We do not guarantee
the accuracy of this information and may revise this information at any time without priornotice. We and other providers of this information assume no responsibility whatsoever for
any losses incurred in association with the information in this presentation.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved37