New Mid-termManagerial Plan 2021

World Holdings Co., Ltd.
First Section of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Corporate ethos
Under the basic policy of “contributing to people and cultures around the world
through business,” we will create “systems in which people can flourish” with our
3 core businesses.
Real Estate Business

Personnel and education businessTo connect people and housing
New ways of urban development

To connect people and jobs—
New ways of working

World Intec

Three Core
Businesses

World Residential
World Development Indonesia

World Intec Fukushima

World iCity

World Intec Taiwan

World Wisteria Homes

DOT World
Advan
Geographic
Information of Kyushu

World Mikuni
Information and communications business

World Resiselling

To connect people New waysof communication

Nichimo Real Estate

MikuniWorld Intec Shanghai

Omachi WorldEngma Intec
Farm Corporation

Hoei
Construction

Best IT Business

M’s Corporation
No. of affiliates: 24

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

1Variation in performance
To design an optimal portfolio with multiple businesses according to the economic
environment in each age ⇒ Stable business growth where individual businesses can
support one another.
Self-growth period for fortifying corporate governance(new mid-term managerial plan 2012-2016)[million yen]

120,000

Formation of a business base (early period)
New mid-term managerial plan 2007-2009,
mid-term managerial plan 2010-2013

100,000

Listed in the 1st section of TSE

94,334

7,407

80,000[million yen]

10,000
9,000
8,000
7,000
6,000

60,000

Launch of information andcommunications business
Listed in JASDAQ market

Lehman’s fall

Launch of realestate business

5,000
4,000

40,000

3,000
2,000

20,0001,000
02006/12

2007/12

2008/12

2009/122010/122011/122012/122013/12

2014/122015/122016/12

Human Resources and Education BusinessInformation and telecommunications business

Real estate business

Operating profit (right axis)

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02Review of the new mid-term managerial plan (2012-2016)

Well-balanced
management(Capability of stable growth)

自力拡大

Self growth (Development of anorganization with strong governance)（ガバナンスの強い組織構築）

Emphasis 利益重視
on profit Enhancementof earning capability（稼ぐ力）アップ

Establishment of a base
拡大基盤の整備for growthCompletion of a robust organizationthat can grow stably
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3New mid-term managerial plan (2012-2016); summary and results of each business (1)Summary and results (Human Resources and Education Business)
Intensive measures
In addition to personnel development and scale expansion of our existing business, we reviewed our commercial
distribution for manufacturing, and promoted the strategies focused on the peripheral fields of the existing business.

Results
We developed a firm base for our existing business, and started our business in promising markets.
Business strategies
・Entry to the logistics market[Cultivation of new fields for the factory business]
・Entry to the factory engineer field[Cultivation of new fields through the cooperation between the techno and factory businesses]
・Entry to the PV market[Cultivation of the peripheral fields of the R&D business]
・Entry to the OCS field (call centers and light duties) [Cultivation of unexplored fields for the business of dispatch of registered workers]
・Launch of the S&M business[Establishment of new segments in response to the expansion of the CB and OCS sections]
・Launch of Techno Design Center[Establishment of an institution for training engineers]
M&A
・DOT World[Launch of the CRO business]
・Noritsu Taiwan[Enhancement of the training of engineers and the communication with overseas personnel]
・Nikken Techno[Strengthening of the repair business]

Results in 2011------------------------------Factory business
15,722 million yen---------R&D business
2,502 million yen-----5,982 million yen
Technology business
Sales & marketing business
683 million yen

Results in 2016
30,111 million yen（191.5％）
5,533 million yen（221.1％）
10,334 million yen（172.8％）
5,654 million yen（827.8％）

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4New mid-term managerial plan (2012-2016); summary and results of each business (2)Summary and results (real estate business)
Intensive measures
To predict what kinds of business and areas will see the growth of demand while considering economic situations andpolicies, clarify the roles of operating companies, and promote strategies for business expansion.

Results
We carried out well-balanced business administration that is not swayed by the economic environment, maximizing profit.
Business strategies
・To establish operating companies in Tohoku, Osaka, and Fukuoka,
following the Tokyo Metropolitan Area [Expansion of the area for development business]
・To revise the portfolio of land for business while considering the economic environment,
and enrich collaboratively developed real estate as well as the real estate developed by our company［Promotion of efficient commercialization］
・To actively make inroads into new fields [real estate management, prefabricated houses, rental, renovation, single-family houses]
M&A
・Omachi Unitex (present: Omachi World) [Prefabricated house and rental business]
・Mikuni Sangyo (present: Mikuni) [Renovation and area expansion]・Compax[Real estate management]・Hoei Kensetsu[Single-family housing business (Hokkaido)]
・Farm[Leisure industry]

Real estate business---------(To be officially determined in 2017)

Results in 2011

Results in 2016

1,514 million yen

34,481 million yen（2277.5％）

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5New mid-term managerial plan (2012-2016); summary and results of each business (3)Summary and results (information and communications business)
Intensive measures
Under the saturated business environment, we prioritized the investment in the development of future systems whileassuming store operation and personnel that will be required in the future. We prepared for the second expansion phasein which we would strive to retain customers.

Results
Store operation was rationalized, transitioning to a flexible excellent store system. Personnel with highhospitality were produced, achieving a store operation system and increasing new services.
Business strategies
・Establishment of the network of excellent stores[Promotion of store operation streamlining focused on scrap]
・Personnel education to offer services that would retain customers［Original personnel education］
・Establishment of stores under a new concept[Keitai-no-madoguchi (Customer Support for Cell Phones) opened]・Increase of new services [LED rental, etc.]

Results in 2011
Information and communications business ---------- 9,176 million yen

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Results in 2016
7,742 million yen (84.4%)

6

Summary of quantitative goals in the new mid-term managerial plan (2012-2016)
Summary and results (quantitative goals)

Net Sales did not reach the target, because real estate was transferred at a wrong timing in
the real estate business. Operating income exceeded the target considerably, because we
conducted business while emphasizing profit.
New mid-term managerial plan in 2012(quantitative goals)

Performance in 2016 (results)

Net Sales
100 billion yen
Operating income
5 billion yen
ROE
20% or over
Capital-to-asset ratio 25% or over
Payout ratio
20% or over

Net Sales
94.3 billion yen
Operating income 7.4 billion yen
ROE
33.5%
Capital-to-asset ratio 19.4%
Payout ratio
30%

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7

Environmental changes in each business field

Human Resources
andEducation Business

Topics

Effects and environmental changes

Amendment to the Worker
Dispatch Law
Acceleration of outsourcing

・Effects of the amendment to the law(The burdens on enterprises hiring dispatched workers increased,administrative guidance improved, and so on.)・Ability to do business in more advanced business fields
・Acceleration of decrease of labor due to the population decline(Intensification of recruiting competition)

Increase of foreign visitors to
JapanReal estate business

Hosting Tokyo Olympics

Increase of business ofrestoration after the earthquake

・Skyrocketing of land prices
・Accelerated augmentation of construction cost
・Rise in selling prices

disaster

Information andtelecommunications
business

Guidelines regarding therationalization ofassistance in purchase ofsmartphone terminals

・Competition among 3 carriers + MVNO
・Consolidation and abolishment of stores
・Carriers improved their brand strategies (highrequirements)

We require a strategy for achieving the most efficient stable growth(expansion) while predicting changes.
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8New mid-term managerial plan 2021 Summary (1)New Vision

ーPursuit of an evolved system in which people can flourish“We aim to become an enterprise that can grow stably,
more strongly and more socially”
Appropriate scale andwell-balanced businessadministration

Stablemanagement
Social contribution in various
fields with a broad range ofbusinesses

Expansion of ourbusiness domain

Business
expansion

High sociality

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9New mid-term managerial plan 2021 Summary (2)Expansion based on well-balanced business administration
We will pursue optimal profit earning performance with an appropriate scale while concentrating on
our core business, and aim to expand our existing business based on stable growth. In this plan, we
will make inroads into new fields surrounding our existing business with an appropriate scale andoffer new services.
<Second half of the period of the
mid-term plan>

Expansion of corebusiness into
peripheral fields<First half of the period of the mid-term plan>

Expansion of our core businessto appropriate scale《New business field》

Core business
Human Resources and Education Business

Real Estate BusinessInformation and Telecommunications
Business

Axis of time

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10Human Resources and Education Business (1)Outline of Human Resources andEducation Business

Beyond outsourcing…
From unilateral matching to bilateral matching
Endeavor as a professional in job creation
Keywords

Personnel platform + one-stop services + bilateral matching (personnel
development + job creation) + appropriate scale＝
Creation of an environment in which various people can flourish

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11Human Resources and Education Business (2)Future direction of the manufacturing industry

Population
decline,automation,AI, overseas
business

Shrinkage of themarket of
employment inthemanufacturing
field《Manufacturing field》

Acceleration of open external utilizationof “technologies” and “personnel,”Labor
shortagewhich had been held by individualcompanies《Amendment to the Worker Dispatch Law》
To encourage temporary staffing agencies,
which can accept personnel surely

New manufacturing flow

Conventional manufacturing flow

Manufacturing based on each maker’s originaltechnology and human resources
Maker B
Maker A
Core technology

Core technology

Technology

Technology

Personnel

Personnel

Manufacturing with technologies and humanresources available to any enterprise
Maker A
Maker B
Core technology
Diffusion ofoutsourcing

Core technology

Technology
Open innovation
Personnel

Supply of products

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12Human Resources and Education Business (3)Promising human resources (HR) market and main trends

Mobilization of HR--Appropriate personnel, timing,
and workplaces

HR platform※--for new markets

Worker dispatch field from now on《Existing market＝Prioritization on needsfrom businesses》
2,585 billion yen in 2015

Expansion strategy within the existing
field＝✖

Electricity

Automobiles

Research

Expansion of the existing
markets

Semiconductor

Open innovation field
Mobilization of HR
HR platform※

Response to new markets

Electricity

Automobiles

Semiconductor

Production

Technology

Personnel in specific industries andbusinesses

Competitive
advantage

Production

Conventional worker dispatch field

Technology

From the utilization of
personnel in specificindustries to theutilization of personnel
beyond industrial
categories

Research・Human resources in a
broad range of fields
・Support in careerdevelopment in any field
・Creation of various ways
of working (industries,
jobs, working conditions)《Existing market + Our original markets》
3,472 billion yen + α in 2020

※HR platform: Specialized group with respective technologies and skills

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13

Human Resources and Education Business (4)Personnel development process
Support for career development
A variety of educational systems

Various routes for employment
One-stop services↓
A broad range of humanresources

Based on inter-segmentcooperation(Sharing of information and roadmaps)(Promotion of interaction among workers
beyond segments)

Development of a HR platform* based on a competitive organization
Various routes for employment(One-stop service)

R&D
TechnoSpecialized education and roadmaps for human resources in a broad range of fields
About 20% of registered workers
About 80% of registered workers (Know-how unique to our company)
Long-term stay is possible
according to career goals.

HR platform(Teams with expertise)SI

Career change

FC

Career development

S&M

Skill improvement

Professionals
Technicians
Managers

Career path

Transfer (employment)New
population
development

Beyond that…

Diffusion of experience※ HR platform: Specialized group with respective technologies
and skills
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14

Human Resources and Education Business (5)Bilateral matching
Matching according to unilateralneeds from businesses↓
The expansion of the recruitment
population and the stability ofretention rate are major strategies
for increasing registered workers.
(War of attrition)

Collection and management of resumes +Accumulation of info on career goals.
Personnel development (To cover the shortcomings of applicants)
Job creation (Job creation according to applicants’ career goals)
Bilateral matching for developing peronnel and jobs

Recruitment from now on

Conventional recruitment
Recruitment of workers according to unilateral needs from businesses
Matching =Recruitment

Applicants
Conflict of needs＝ Not hired

Needs
from
businesses

Bilateral matching based on the collection and management of resumes,
the accumulation of career goals, and the production of databases

Needs from businesses

Applicants↓《Personnel development》
To cover the shortcomings ofapplicants
・Awareness raising
・Challenges from other segments
・Support for career development,etc.

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Matching↓《Job creation》
Development of an environment
according to career goals
・Work styles suited for career goals
・Creation of personnel utilization
methods
・Expansion of needs, etc.

15

Real estate business (1)Outline of realestate business

Striving to improve the abilities to run our businessand stand on our own
Reform of the earning structure based on the resilientbusiness that is not swayed by the economic environment
Keywords

Improvement of recurring-revenue business + Fund turnover + Strengthening of self
procurement capability + Fortification of housing business＝
Launch of new real estate business

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16Real estate business (2)Reform of the profit earning structure considering fund turnover
Change in profit rate through the improvement of recurringrevenue business

Optimization of fund turnover = Stability of cash
flows

Development-centeredbusiness structure↓

Vulnerable to a change
in the economic
environment

Strong self fund procurement capability for seizing
investment chances《Differences in properties among business categories》
Risk

Recoupment
periodProfitrate

Recurring revenue
property

Development

High

2-3 years

High

Low

Renovation

Medium

4-6 months

MediumMediumCustom homeHigh8-10 months

High

MediumPrefabricated house

Medium

7 years

MediumHigh

Property

Low

Short

Low

High

《Change of profit composition》
Recurring
revenue

One-timerevenue

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Recurring revenue（Low risk, low return）

One-time revenue（High risk, high return）

17

Real estate business (3)Strategy
Development (one-time-revenue business)

Renovation (one-time- & recurring-revenue
businesses)

We aim to increase revenue by maximizing ROI
and achieving an appropriate scale based on the
procurement and supply considering the
economic environment

To earn recurring revenue based on our
nationwide network and procurement channels,
and become No.1 in the renovation field.

<No. of residential units supplied per year (appropriate scale)>
Tohoku: 100-200 units
Tokyo Metropolitan: 400-500 units
Kinki: 100-200 units
Kyushu: 100-200 units<No. of residential units supplied per year
(appropriate scale)>
1,500 units《before》

ONE PARK RESIDENTIAL TOWERS《Miyagi Pref.》Branz Yokohama-Bashamichi Residential《Kanagawa Pref.》Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved《after》
18

Real estate business (4)Prefabricated houses (recurring-revenue
business)

Strategy
Single-family houses (one-time-revenue
business)
To improve our overwhelming brand andperformance in Hokkaido based on our networkin Tohoku region, and earn recurring revenue by
renovating, buying, and reselling over 4,000
houses we have sold so far.

In addition to existing products, we will develop
new products, to enrich our product lineup, andimprove the distribution to the existing
infrastructure and build our original routes insideand outside Japan, to earn more recurring
revenue with rental business.

<No. of houses supplied per year>
300-350 houses

Our original brand《Challenge 999 Series》

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19Real estate business (5)Expansion of our business domain
To rationalize fund turnover and enter new real estate markets

Foray into new fields
To achieve well-balanced
management by enriching products
and services
To develop a robust financial base

Establishment of adevelopment-centeredbusiness baseSingle-family houses
Prefabricated houses
Renovation

Development

2010

2016
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2021
20

Information and telecommunications business (1)Outline of Informationand telecommunications
business

Creation of new value through the pursuit of better services
Fusion and synergy of target areas (expansion of the store network)
and items (products)
Keywords

Hospitality + Target area expansion + Cultivation of products＝
Progress to the community-based expansion phase

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Information and telecommunications business (2)Strategy
Cellphone shop
Overwhelming customer retention > quantity sold of cell phones
To enlarge excellent existing shops
Development of excellent sales staff
To expand new target areas

Investment

Increase of customers
Growth of sales of secondary products,
etc. and revenue from services

Growth of revenue

Retention of carriers

Enhancement of support

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22

Information and telecommunications business (3)Strategy
Cultivation of products/services
We aim to boost profit rate by enriching primary products and services, which produce
recurring revenue, while emphasizing the utilization of the existing infrastructure(shops, human resources, and business segments).
《Infrastructure for information andcommunications business》
Primary products/services that
produce recurring revenue

Customers

Sites《Infrastructure for personnel andeducation business》

Sites

Personnel

Clients

Distribution《Infrastructure for real estate business》

Sites

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Customers

Relatedenterprises

23

Other business (new business)
Farm Corporation
To revitalize community-based facilities, create a broad range of employment,
communicate with local residents, and fertilize local economies.

Akagi Plateau Pasture

Kronenberg
Shinshu-Shiojiri Farm Park

Tirolian Forest
Komorebi
Sakai-Midorino Museum

Morino Ibaraido

Harvest Hill

Chiba Zoological Park

Hibikinada GreenPark

Fureai Dobutsu-no-Sato

Minokamo Rest Area
Shiga Farm Park

Corporate Profile

Blume-no-Mori
Okayama Farm Park

German Forest Kronenberg

Name: Farm Corporation
Location: 1705-1 Omachi, Saijo-shi, Ehime Pref.
Business content: Operation and management of farmparks
Established in: Jul. 1968
Covered area: Ibaraki, Chiba, Gunma, Nagano, Gifu,
Shiga, Osaka, Okayama, and Fukuoka Prefectures
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24Social contribution activity (World Intec Fukushima)
Establishment of Department of Work
(Job-placement office for women [mothers])
In Koriyama City, Fukushima Prefecture, “Village for Developing Lifestyles” was opened, as we have participated in thisproject from the planning stage, which is subsidized by Nippon Foundation. In this facility, “Department of Work (Jobplacement office for women [mothers])” is operated by World Intec Fukushima, which is one of our affiliates. Its
operation began as a site for distributing information for empowering women.

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25

Numerical Goals

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26

Numerical goals for 2021

Net Sales: 200 billion yen(M&A accounts for 10-15 billion yen)

Operating income: 10 billion yen
ROE: 20% or over
Capital-to-asset ratio: 20% or over
Investment for growth (M&A funds): 10 billion yen
Payout ratio: 30% or over

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Numerical goals in the new mid-term managerial plan for 2021
In 2021
Net Sales: 200 billion [million yen]
yen
12,000Operating income:10 billion yen[million yen]

250,000

In 2016
Net Sales: 94.3 billion yen
Operating income: 7.4
200,000
billion yen

10,0008,000
150,000
6,000

100,000
4,000
50,000

2,000

0

0
2016年
2016

2017年
2017

2018年
2018

2019
2019年

2020年
2020

2021年
2021

Factory business
ファクトリー事業

Technology
テクノ事業businessR&D
business
R&D事業

S&M business
S&M事業

Other business
その他事業

Real estate business
不動産事業

Information and
情報通信事業

営業利益
Operating profit

telecommunications
business

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved28Return to shareholders

We will keep payout ratio 30% while prioritizing the investment forbusiness expansion.
Variationin dividend
配当金の推移[unit: yen]

75.3
63.2
47.5
23.7

4.5

4.5

8.5

10

2010年
2011年
2012年
2014年
2015年
2016年
2017年
2010
2011
2012 2013年
2013
2014
2015
2016
2017

2021年
2021

予想
Estimate

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved29Inquiries about this document
Yohei Shigematsu

Publicity and IR Division
Business Management Dept.
World Holdings Co., Ltd.
TEL

03-3433-6005

E-MAILirinfo＠world-hd.co.jp

URL

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

Any information in this document is not intended for promoting the purchase, sale, or the likeof the shares of World Holdings. The opinions, estimates, etc. written in this document are
based on our judgment made at the time of production of this document, and we do notguarantee the accuracy of the information, which may be revised without notice. Our
company or any information provider will not take responsibility for any damage arising outof this information. We would appreciate your understanding.

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