FY2013 Financial Results

February 18, 2014
World Intec Co., Ltd
JASDAQ (2429)

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

I. Summary of Financial Results
II. Trends by Business Segment
III. Shifting to a Holding Company System

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved2World Intec Group: Three Core Businesses
Empower people through work
Human resources education businessConnect people with work - New work style -World Intec Co., Ltd R&D:
 Technology:
 Factory:

WORLD INTEC FUKUSHIMA CO., LTD

Dispatch of researchers
Dispatch of engineers
Dispatch of manufacturers,
Contract work
■ CB:
Dispatch of sales personnel■ Construction:
Dispatch of construction
managing engineers■ OCS:
Dispatch of clerical workers■ Repair:Entrust equipment repair■ Administrative: Personnel training contract■ Overseas:
Parts procurement

DOT International Co., Ltd.
Advan Co., Ltd.
 PC school operations business, educational materials,
software sales business

GEOGRAPHIC INFORMATION OF KYUSHU, INC.

Best IT Business Co., Ltd.
 Corporate businessWORLD INTEC SHANGHAI CO.,LTD. [non-consolidated] Staff placement, consulting and education
business

 Map information, entrusted system development ,disabled
persons’ employment support, education business

Bring people together through IT- New style of communication - Call center business Insurance business Staff placement and worker dispatching
services for the manufacturing sector

 Clinical Research Outsourcing business (CRO)

Information &telecommunication businesse-support, inc.

<Overseas>WORLD INTEC TAIWAN CO., LTD.

 Administrative contract businessNetwork Solution Co., Ltd.
 Softbank business WILLCOM business

Mobile Service Co., Ltd.
 KDDI business

Real estate businessConnect people with housing- New style of urban development World Residential Co., Ltd.
 Condominium business (theTokyo metropolitan area)
 Condominium managementbusiness

World Resiselling Co., Ltd Selling agency

Nichimo Real Estate Co, Ltd.
 Real estate loan consulting
business

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

Wisteria Homes Co., Ltd.

 Condominium business (theKinki area) Selling agency

World iCity Co., Ltd.

 Condominium business (theTohoku area) Selling agency

3

I. Summary of Financial Results

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

4

FY2013 Summary
Net sales, operating income, ordinary income and net income reachedrecord highs.

FY 2012actual

FY 2013
actualChangeMillion yen, %Net sales

53,007

Operating income

1,223

Ordinary income

1,290

Net income/loss

658

EPS (yen)

40.3

Dividend per share (yen)

8.5

FY 2013

YoY

56,450 3,442
2,120
896
2,164
874
834
176

Pct.
Changelatestforecast*

Comparison withearnings forecast
ChangePct.
Change6.5

56,487

73.3

1,853

△37

267

△0.1

67.8

1,793

371

20.7

26.8

712

122

17.1

49.6
10.0

14.4

42.4
8.5
*Announced on February 12, 2013

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

5Trends by Business Segment
Million yen, %Net sales
Factory business

Segment income
Profit margin
Net sales

Technology business

Segment income
Profit margin
Net sales

R&D business

Segment income
Profit margin

Information
technology &telecommunications
business

Net sales
Segment income
Profit margin
Net sales

Real estate business

Segment income
Profit margin
Net sales

OthersSegment income
Profit margin
Net sales
Elimination or corporate

Total

Operating income
Operating margin

FY2012
actual

FY2013
actualYoY
ChangePct.
ChangeFY2013full-year
forecast*

17,893489

18,738
1,083

844
594

4.7
121.5

21,488
1,142

2.7%

5.8%

－

－

5.3%

6,197
356

6,424
571

226
215

3.7
60.4

7,201
573

5.7%

8.9%

－

－

8.0%

2,984
269

3,693
194
5.3%

11,658408

13,092
441

1,434
33

23.8
△ 27.8

4,053
443

9.0%

709
△74

3.5%

3.4%

8,794
462

8,683
511

5.3%

5.9%

5,479
211

－

10.9%

12.3
8.2

11,000
300

－

－

2.7%

△111
49

△ 1.3
10.8

8,215
390

－

4.8%

5,818
281

339
70

6.2
33.1

4,528
205

3.9%

4.8%

－

－

4.5%

53,007△972
1,223

56,450
△964
2,120

3,442
△8
896

6.5

56,487△1,202
1,853

2.3%

3.8%

－

－

73.3

－

3.3%

FY2013
progress against
the full-year
forecast

87.2%
94.8%
89.2%
99.7%
91.1%
43.8%
119.0%
147.0%
105.7%
131.0%
128.5%
137.1%
99.9%
114.4%-*Announced on February 12, 2013
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

6Change in Net Sales by Segment
Promotion of structural reforms
Shifting from production
technology to design
development(Million yen)

60,000Large-scale projects inElectric & Electronics andLogistics categories
boosted sales

Factorybusiness844

55,000Technology
business
226

Staff increased by 100
through active recruitment
Direct contribution of DOT¥550 million

Strong sales ofsmartphones and tablets

Information &telecommunications
business
R&D
1,434
business
709
Real estatebusiness▲111

50,000Growth of CB
business

Others339

Decrease in the number ofhouses built for sale

FY201253,007FY201356,45045,000¥3,442 million
40,0002012/12

ﾌｧｸﾄﾘｰ事業

ﾃｸﾉ事業

Ｒ＆Ｄ事業

情報通信事業

不動産事業

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

その他

2013/127

Changes in Operating Income by Segment(Million yen)

2,500

Profitability andimprovement ofcost of businesses
in which upfront
investments
were madeFactorybusiness
594

2,000

1,500

Sales expenses were carriedover to the next period as aresult of switching to sellingcompleted properties.

Shifting to a highunit pricebusiness throughstructural reforms

Investment in
new businesses
Renovation andstore shut downs

Technology
business
215

Information &Real estate
telecommunications businessbusiness
49
33

Others70

Growth of CB
business

Eliminations
or corporate
8

R&D
business▲74

Goodwill amortization associatedwith making DOT a subsidiary▲102

FY2013
2,120

1,000

500

FY2012
1,223¥896 million0

2012/12

ﾌｧｸﾄﾘｰ事業

ﾃｸﾉ事業

R&D事業 情報通信事業 不動産事業

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

その他

消去・全社

2013/128

Financial Condition B/S
Total assets(Million yen)

30,56630,00023,805Current assets•••

20,00028,157 (+6,877)

Cash and deposits:

5,970 (+1,073) Increase in newly
consolidated subsidiaries
Notes and accounts receivable-trade: 5,427 ( +768) Increase in sales
Real estate for sale in process:
14,195 (+4,140) Acquisition of commercial
premises

28,157

Fixed assets

21,27910,000•0(Million yen)

2,525

2,409

End of FY2012

End of FY2013

Fixed Assets

Current Assets••

Total liabilities/net assets
30,56630,00023,805
19,59420,000Property, plant and equipment:

637 ( △96) Renovation and closedown of ESP
stores, impairment loss on offices
Intangible assets:
655 (△102) Goodwill of DOT
Investments and other assets: 1,116 ( +81) Deferred tax assets

Current liabilities•••

Fixed liabilities
4,288

•

5,826

6,683

•

End of FY2012

End of FY2013

2,245
0
Net assets

19,594 (+3,860)

Short-term debt:
10,931 (+1,543) Fund for purchase of real estate for sale
Accounts payable-Real
Estate Business:
1,079 (+641)
Income taxes payable:
955 (+676) Increase due to WITC and WR

15,733
10,0002,409 (△116)

4,288 (+2,043)

Long-term debt:

3,617 (+1,814) Fund for purchase of real estate
for sale
Provision for retirement benefits: 576 (+198) Change from the simple method
to the principle method

Fixed liabilities

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

9Cash Flow
•
•
•
•
•

Acquisition of tangible fixed assets
Acquisition of intangible fixed assets

Net increase in short-term debt 1,874
Net increase in long-term debt 1,483
Dividends paid
△142

•
•
•
•
•
•

(Million yen)
9,000
8,000

Financing
CF
3,213

7,000
6,000

△82
△72

Investing CF△141

Net income before income taxes 1,940
Trade payables
915
Provision for retirement benefits
198
Trade payables△757
Real estate for sale
△4,603
Income taxes△541

OperatingCF△2,012

5,000
4,000
3,000
2,000
1,000

Cash andcash
equivalents
at beginningof year
4,901

Cash andcash
equivalents
at end of
year
5,974

Up ¥1,073 million

0
FY2012Financing CF

Investing CF

Operating CF

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

FY'201310

Summary of FY2014 Business Forecasts
FY2013
actual

FY2014
forecast

Million yen, %Net sales
Operating income
Ordinary income

56,4502,120
2,164

Net income

834

EPS (yen)

49.6
10.0

Dividend per share (yen)YoY
Change70,620 14,170
560
2,680
407
2,571
367
1,201

Pct.
ChangeFY2014FY2014
Forecast Forecast for
3Q&4Q
for 1Q&2Q(cumulative) (cumulative)

25.1
26.4
18.8

33,298910
863

37,321
1,769
1,708

44.0

342

859

20.3

51.1

71.4
14.3

1

Expect 25.1% increase in sales and 26.4% increase in ordinary
income YoY in FY2014

2

Promoting strategies for expanding sales and increasing sales andprofits.

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

11

FY2014 Business Forecasts by Segment
FY2013
actual

FY2014
forecast

Million yen, %Factory business

12,777

215

19.8

466

832

5.8%

5.7%

－

－

4.6%

6.5%

6,424

984

15.3

3,614

3,794

117

20.5

311

376
9.9%

Segment income

Segment income
Net sales
Segment income
Profit margin
Net sales
Segment income
Profit margin
Net sales
Segment income
Profit margin

571

7,408
688

8.9%

9.3%

－

－

8.6%

3,693

754

20.4

2,024

2,422

194

4,447
289

95

49.0

107

182

5.3%

6.5%

－

－

5.3%

7.5%

13,092

1,397

10.7

7,494

6,994

441

14,489
489

48

10.9

294

194

3.4%

3.4%

－

－

3.9%

2.8%

8,683

6,334

72.9

7,076

7,941

378

74.0

262

626
7.9%

511

15,017
889

5.9%

5.9%

－

－

3.7%

5,818

450

7.7

2,878

3,390

281

6,268
224

173

3.6%

△ 20.3

50

4.8%

△57

－

1.7%

5.1%

25.1

33,29837,321

26.4

910

1,769

2.7%

4.7%

Elimination or corporate

56,450△964

Operating income

2,120

Net sales
Total

10,210

1,083

Profit margin

Others

22.7

Segment income

Net sales

Real estate business

4,250

22,988
1,299

Profit margin

Information technology& telecommunications
business

Pct.
Change18,738Net sales

R&D business**

ChangeNet sales
Profit margin
Technology business

FY2014
Forecast for
3Q&4Q(cumulative)

FY2014
Forecast for
1Q&2Q(cumulative)

YoY

Operating margin

3.8%

－

70,620 14,170－△1,200
2,680
560
3.8%

－

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

12II. Trends by Business Segment

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

13

Human Resources and Education Business：
Business model and business segments

Worker dispatch
General worker dispatching

Businesssegment

Worker dispatching underwhich worker are
dispatched as those otherthan specified workers

Specified worker dispatching
Worker dispatching underwhich only regularlyemployed workers aredispatched (26 special job
categories)

Contract work
Contract works whose goal
are the completion of work
(Article 623 of the Civil Code)Remuneration is paid not forhours worked, but fordeliverables.

Factorybusiness

Dispatch of
manufacturers

Technology
business

Dispatch of production
technology engineers

Dispatch of design
development engineers

Production technology
contracting
SI / Development contracting

R&D
business

Dispatch of research
assistants

Dispatch ofresearchers

Clinical contracting(DOT International)

Dispatch of sales
personnel (CB business,
OCS business)

Dispatch of construction
managing engineers(construction business)

Administrative(World Intec Fukushima)

OthersManufacturing andlogistics contracting

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

14

Human Resources and Education Business：Move for revision of law
Purpose ofrevision

1. Facilitating the use of dispatched workers by businesses
Þ Revitalizing the economy
2. Improving job stability of dispatched workers
Þ Stabilizing employment

Present situation
 The maximum period for receiving fixedterm worker dispatchingÞThree years or less for the same job
 Restrictions based on the 26 special job
categories* 26 job categories that require high levels of
expertise and skills(Software developer, machine designer,interpreter, secretary, etc.)* Indefinite-term employment

Ifmaterialized,

Proposed revision(beginning from the spring of 2015)
 The maximum period for receiving fixedterm worker dispatchingÞ Three years or less for the samedispatched worker
Deliberation
 No limitation period for workers on
indefinite-period contracts with worker
dispatch operators.
 Abolishing the 26 special job categories
 Shifting from the notification system to theapproval and licensing system

Revitalizing the worker dispatching market
Working to the advantage of staffing
companies with financial strength

Market expansion
Acceleration of
shakeout

Serving as a tail wind for the World Intec Group
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15

Human Resources and Education Business：
Macro environment
Trends in the number of temporary staff andtemporary staffing sales nationwide

Unit: 10 thousand persons

Unit: Trillion yen

198

200

8
Specific temporary staff

174
150

157

152

7

General temporary staff
Number of temporary staff

148

6
137
114

100

92

5
4
3

50

2
1

0

0
2006

2007

2008

2009

2010

2011

2012

2013

Note: The part of the graph indicated by the dashed lines shows reference value estimated by the Company using the ratio for 2010 because the relevant value has
not been released by Ministry of Health, Labour and Welfare.
Source: Based on the “totals of the annual report of the temporary staffing business" by the Ministry of Health, Labour and Welfare, and the “labor force survey (basic
count)” by the Bureau of Statistics of Ministry of Internal Affairs and Communications

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

16

Human Resources and Education Business：
Transition in the percentage of contract work by segment
The percentage of contract work is increasing in the Factory businesssegment with the expansion of sales scale in the logistics field.
Factory business
0%50%

Technology business
0%

100%

50%

Corporate

100%

0% 18.5％

50%

100%

1Q

35

65

1Q

54

46

1Q

35

65

2Q

40

60

2Q

56

44

2Q

37

63

3Q

46

54

3Q

54

46

3Q

41

59

4Q

49

51

4Q

59

41

4Q

45
13.6%

55

Full-year

50

50

Full-year

56

44

Full-year

40

60

Contract work

Worker dispatching

Contract work

Worker dispatching

FY2012 (full-year)

Contract work

Worker dispatching

FY2013 (full-year)Factory business Contract work : Worker dispatching 35:65
Þ 50:50®Mainly due to the impact of significant increases in sales in the Electric & Electronics andLogistics (e-commerce) categories.

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

17Human Resources and Education Business：

Factory business Full-year results of large-scale projects

700
Sales

80,000600

BudgetActual assignment

60,000Planned assignment

40,00020,0000

140,000
120,000

250,000

600

80,000400

300

60,000300

200

40,000200

100

20,000100

Planned assignment

0

500

0
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

 Project C Electric & Electronics category

Thousand yen

700
600

100,000

80,000500

200,000

Actual assignment

400

0

Sales
BudgetActual assignment
Planned assignment

Budget700

100,000

Persons

300,000

Sales

500

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

Thousand yen Project B Logistics category400

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

60,000700
600

Persons

100,000

Thousand yen

Persons Project A Liquid Crystal category
Persons

Thousand yen

500
400

150,000
300
100,000

300

40,000200

50,000100
00Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

200
20,000100

00Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

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18

Human Resources and Education Business：

Factory business Sales composition and number of staff and personnel by segment
Expansion of the smartphone related electrical & electronics segment and thelogistics segment, as well as an overall cost improvement is underway.
Sales composition by businesssegment (%)

Transition in the number of staff andpersonnel in service*(Persons)

25000

7,000
20000

15000

10000

20.2
24.2
6.3
10.5
2.8
8.5
13.8

5000

33.9

25.3
4.6
8.2
6.7
11.5

5.3
8.2
10.2
10.8

18.8

21.6

25.0

23.7

6,000
5,000
4,000

13.6%

3,000
2,000
1,000

0

FY2011
Semiconductors
Logistics
Machinery
Others

FY20122.9%

FY2013

Electrical & electronics
Automobiles
Environment & Energy

10.1%

0

Number of staff

Personnel from other companies / dispatched staff

Year/
Month

* The graphs show sales, and the figures show the sales composition ratio.
* For a detailed breakdown of data for other businesses, please refer to thereference data.

* The number of staff and the number of personnel in service are thesame in December 2012 and before.

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

19Human Resources and Education Business：

Factory business Transition in sales and segment income(Million yen)

(Million yen)

6,000.0600

5,000.0426.6

4,000.0344

400

3,000.0215.5
2,000.0

191.8
97.7

1,000.0

188.3
149.3

136.7

169

200

118.9

102.1

29.9
0

0.0

1Q
Sales (FY2011)

Sales (FY2012)

2Q
Sales (FY2013)

3Q
Segment income (FY2011)
Segment income (FY2013)

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4Q
Segment income (FY2012)20

Human Resources and Education Business：
Factory business Efforts to step up recruitment(Persons)

Number of visitors

12000
10529

8000

(Persons)

Number of users

8000

0

5670

6000

Former Jobpaper New Jobpaper (4(over the 8-month
months)period)The number ofapplicants via the
new Jobpaper has
grown
dramatically as aresult of making
the sitecompatible withsmartphones.

2000
0

6362

3156

39224

30000
20000

22491

10000

Former Jobpaper(over the 8-month
period)New Jobpaper(over the 4-month
period)(Persons)

Number of applicants

50

13.6%

0

Former Jobpaper New Jobpaper(over the 8-month (over the 4-month
period)period)

327

40
30

Number of PV

40000

4000
4000

(PV)

33

2.9%

20
10
0

Former Jobpaper(over the 8-month
period)New Jobpaper (overthe 4-month period)* Comparison between the averages of the 8-month period (Jan.-Aug.) under the former Jobpaper and the 4-month
period (Sep. – Dec.) under the new Jobpaper
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21

Human Resources and Education Business：
Factory business Priority measures for FY2014

Winning large-scale orders by strengthening marketing efforts and securing
human resources by making the most of the new JOBPAPER.
(Million yen)

Net sales

25,00020,00022,98818,738

Securing humanresources Effectively using the unique registration management system
 Attracting applicants by increasing exposure and building a brandfor the new JOBPAPER.
 Increasing staff retention during the initial period after job
assignment.

Continuously
accommodating
growth sectors

 Actively conducting marketing for businesses with stable and robust
earnings
 Accommodating the logistics sector (e-commerce) where the market
expansion continues.
 Accommodating the ups and downs of production of raw materials,
parts and components makers.

Exploiting
recovery in theexisting sectors

 Semiconductor and automobile sectors

Winning largescale orders

 A new project in the industrial machinery sector
 Working on new logistics bases
 Shifting to a high value-added business and improving cost

15,00010,0005,000
02013/12

2014/12(forecast)(Million yen)

2,000

Segment income

1,500

1,299
1,083

1,000
500
0
2013/12

2014/12(forecast)

Attempting to increase sales and profits by developing a system for reliably
meeting customers’ needs and exploiting demand increase.

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

22

Human Resources and Education Business：

Technology business Sales composition by business and number of staff
The shift from semiconductor production technology to design development of automobile
and information & telecommunications services is underway.
Sales composition by businesssegment (%)*

7000

Transition in sales and number of staff(Million yen)

(Persons)

1,800
6000

16.5
5000

4000

1,000

16.9

18.7

791

1,500

2.9
3.9

1.4
6.2

7.0
7.1

11.0

14.8

18.5

1,200

648

576
608

900

800
600
400

3000

600
65.2

2000

58.9

51.0

200

300

1000

0

0
2012 2012 2012 2012
2.9%2013 2013 2013 2013
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q

0

FY2011FY2012FY2013

Others

Machinery

Automobiles

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

Design development sales
Production technology sales
Number of staff in production technology
Number of staff in design development* The number of staff is the three-month average.
** The number of staff includes external staff for 4Q FY2013 and beyond.

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

23

Human Resources and Education Business：

Technology business Priority measures for FY2014
Continuing to promote enhancement of marketing capability andstructural reforms through collaboration among Group companies.

(Million yen)

Net Sales

10,000
8,000

6,424

7,408

6,000

Production
technology
field Enhancing marketing capability throughcollaboration with the Factory business.
 Cost improvement

Designdevelopmentfield Joint project with leading manufacturers
 Fostering of repair engineers Fostering of engineers by stepping up
collaboration with Advan.
®Boosting the number of staff.

4,000
2,000
0
2013/12(Million yen)

2014/12(forecast)

Segment income

1000
800
600

688

 Expanding acquisition of new contracts forhigh productivity business.

571

400

Establishing a robust profit base that is less susceptible tochanges in the semiconductor market conditions.
Expanding higher value-added design development category.

200
02013/12

2014/12(forecast)
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

24

Human Resources and Education Business：

R&D business Sales composition by business segment and the number of staff
Actively recruiting personnel against the backdrop of synergy effect with DOT
and a rise in demand in the pharmaceutical and biotechnology fields.

(Million yen)

Sales composition by business field (%)

4,000(Million yen)Transition in sales and number of staff

1,200

3,500

800

680

12.0
1,000

3,000
2,500

6.0
36.0

2,000
1,500

574

19.0
42.0

800

500
400
300

400
1,000
500

50.0

45.0

200

46.0
200

0
FY2011FY2012FY2013

Pharmaceutical /biotechnology

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

700
600

600

44.0

(Persons)

100
0

0
2012
3Q

2012
4Q

2013
1Q

2013
2Q

2013
3Q

2013
4Q

DOT sales
R&D sales (excluding DOT)
Number of staff in R&D (excluding DOT)
* The number of staff is the three-month average.

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

25

Human Resources and Education Business：
R&D business Priority measures for FY2014

Promoting customer acquisition by leveraging synergy effects in marketing(Million yen)

Net Sales

5,000
4,000

4,447
3,693

3,000
2,000
1,000
0
2013/12(Million yen)

2014/12(forecast)

Synergyeffects

 Expanding the customer share (marketingcollaboration for WITC’s customers) Increasing the number of sales staff (training of sales
staff by DOT)
 Increasing the rate of dispatched workers in
employment.

Segment income

500
400

289

300
200

194

Expanding the scope of business in promising areas
such as regenerative medicine.

10002013/12

2014/12(forecast)

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

26

Human Resources and Education Business：
R&D business Growth strategies centering on DOT
Synergy effects (growth strategies)

Three measures to accomplish growth strategies

3,000(million yen)
50.0%

2,500

45.0%
40.0%

2,000

35.0%

Strengthening
marketingcapability(launching Sales
Department under
the initiative of WI)•Sharing customer resources with WITC
•Introducing systematic marketing•Introducing a new customer acquisition
method (with prospects of acquiring several
major customers)

Stepping up
recruitment(launching
Recruitment
Department under
the initiative of WI)•Collaborating with WITC for sharing humanresources.
•Start hiring new graduates (10 persons in thefirst year).
•Recruit by using an original method(recruitment channels other than staff
placement agencies)

30.0%

1,500

Investment inhumanresource
development

1,000

23.9%

25.0%
23.0%

21.9%

20.0%
15.0%
10.0%

9.5%

500

5.0%

4.7%

0.0%

0

2014
Net salesThe
numberof staff

2015

2016

Operating income

2017

2018

Operating income margin

2014

2015

2016

2017

2018

81

105

171

219

286

Areas to bestrengthened in the
future• Disease area (cancer / central nerve /circulation organs)• Clinical study (regenerative medicine
such as embryonic stem cells)• Global (Domestic liaison office ofoverseas manufacturers)

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved27

Human Resources and Education BusinessCB (dispatch of sales personnel) Business (Other business segment)
By promptly responding to request for staffing,
we are exploiting demand for certain.

(Million yen)

Sales composition ratio in otherbusiness segment*(Persons)

6,000
Others

5,000
4,000

1,000

763

800

CB

38.2

Administrative
contact

48.9

583

600

637

770

686

491
400

3,000
2,000

Transition in the number of staff in
CB business

33.2
23.8

200

27.3

28.6

FY2012FY20130
2012/12 2012/12 2013/12 2013/12 2013/12 2013/12
3Q
4Q
1Q
2Q
3Q
4Q

0

* The number of staff shows the three-month average.

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

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved28

Human Resources and Education Business：
Others Priority measures for FY2014(Million yen)

Expanding business area and size

Net Sales

8,000
6,000

5,818

6,268

CB

4,000

• Expanding the apparel business• Expanding the casual area

2,000
0
2013/12(Million yen)

2014/12(forecast)

Segment income

OCS(Office career
support)• Dispatch of clerical workers• Dispatch of call center operators

500
400
300

282
224

200

Construction• Dispatch of construction
management engineers• Design assistants, CAD operators• Field clerical workers

1000
2013/12

2014/12(forecast)

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved29

Human Resources and Education Business：
Realignment of business segment (planned)

Business segments are planned to be realigned because the other business segment expanded in the scale ofbusiness to exceed that of independent business segments.
(Million yen)

Other business segment(Million yen)

Realignment of business segment

8,000

8,000

Geographic Information of
Kyushu, 403

7,000

7,000

W
Fukushima,
1644

20,000Construction, 447
Repair, 193

6,000

6,000
5,000
4,000
3,000

W
Fukushima,
1644

5,000
4,000

Contract workin Fukushima,
633
Repair, 193

18,738

CB,
1931

2,000
Construction,
447
Geographic
Information of
Kyushu, 403

OCS59

5,000

3,693

1,000

ADVN, 4510CB, 1,931
AＤＶＮ, 451

00FY2013 (full-year)

10,000

6,424

3,000

2,000
1,000

15,000

OthersSales &
Marketing

R&D

Technology

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

30

Information & Telecommunications Business:

Trends in total unit sales of mobile phones and smartphones

Units

320,000
300,000

71,19868,404¬ Annual sales of morethan 300 thousand units
Timing of sell-through*

240,000

160,000

67,681

66,04258,81480,34587,77059,53880,000

4Q Jul. – Sep.
3Q Apr. – Jun.
2Q Jan. – Mar.
1Q Oct. – Dec.

73,454

83,19485,410

Increasing withsales of
iPhone 5s

2012

2013

2014

49,46700
2011

Note: The above are consolidated fiscal years and are 3 months behind the calendar years.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved31

Information & Telecommunications Business:
Priority measures for FY2014

Strengthening earnings capacity by building the largest shop network ineach region and boosting sales of new merchandise.
Net Sales(Million yen)

16,000Strengthening humanresource development andcapital investment, including
opening, relocation andrefurbishment of stores.

14,48913,092

12,0008,000

For
individual
customers

4,0000
2013/12

2014/12(forecast)

Expanding sales areas byleveraging our strengths,
such as operating walk-in
insurance and mobile phone
shops, etc.
13.6%

(Million yen)Segment income

600
500

441

Strengthening the
顧客サポート体制強化
customer support system

489

2.9%

400

For
corporate
customers

300
200

Strengthening the sales
LED照明販売体制強化
system for LED lamps

10002013/12

2014/12(forecast)
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

32Real Estate Business: Status of marketing activities for the year
Promoting purchase by taking business profitability into
account and community-based sales.

Purchasesituation

Deliverysituation

Tokyo metropolitan area:
Tohoku area:
Kinki area
Total

11 properties
4 properties
2 properties
17 properties

Equivalent to sales of
27.3 billion yen

In-house developed properties: 94 properties ( Tokyo metropolitan area: 94 properties)
Contract selling properties:
165 properties ( Tokyo metropolitan area: 74 properties;
Tohoku area: 91 properties)*About 90 percent of contracted, internally developed properties were delivered.

385 properties were contracted for sale.

Sales
situation

In-house developed properties:
Contract selling properties:

53 properties for the current fiscal year;
186 properties for the next fiscal year or thereafter
68 properties for the current fiscal year;
78 properties for the next fiscal year or thereafter

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

33Real Estate Business:

Condominiums to be supplied in the Tokyo metropolitan area (World Residential)
FY20142 projects / 73 units

5 projects / 352 units

FY2015

Arai Yakushi-mae Project

Residential Monzennakacho East

Nakano-ku, Tokyo (37 units)

Koto-ku, Tokyo (28 units)

Shinagawa Nakanobu II
Project
Shinagawa-ku, Tokyo (52 units)

Toyocho Project
Koto-ku, Tokyo (107 units)

Ichinoe Project
Edogawa-ku, Tokyo (97 units)

Branz Yokohama
Bashamichi Residential(joint project)

Residential Tsunashima

Naka-ku, Yokohama(130 units)(59 units)

Kohoku-ku, Yokohama (45 units)

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

34Real Estate Business:
Single-family housing to be supplied in the Tokyo metropolitan area (World Residential)
FY2014

1 project (11 units)

Background factors behind branching out
into the single-family housing businessResidential Noie Komazawa
Setagaya-ku, Tokyo (11 units)

1

Effective use of property
information

2

Drawing on advanced productplanning expertise cultivated in
the condominium business3

Diversification of business cycle

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

35Real Estate Business:

Properties to be supplied in Tohoku area (World iCity)
FY20142 projects (126 units)

2 projects (271 units)

FY2015Residential Aoyama
EkimaeResidential Minami Sendai
Taihaku-ku, Sendai City (54 units)

Aomori Pref.

Aoyama, Morioka City (38 units)

Akita
Pref.
Iwate Pref.

Yamagata
Pref.

Miyagi Pref.

Taihaku-ku, Sendai City (70 units)

Residential Kaiseizan Koen
Koriyama City, Fukushima Pref.
(72 units)

Asuto Nagamachi Project

Fukushima Pref.

Sendai City Reconstruction
Public Housing
Taihaku-ku, Sendai City (163 units)

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

36Real Estate Business: Kinki area (Wisteria Homes)
 Kinki area:favorable market environment 

2 projects (100 units)

FY2015<Condominium market trends in the Kinki area in 2013>
Number of units supplied:
Average price:

24,684 units (up 6.1% YoY)

Toyonaka Project
Toyonaka City, Osaka Pref.
(67 units)

34,960,000 yen (up 580,000 yen YoY)

Monthly contract rate:
Property inventory:

79.6% (up 2.7 percent point YoY)
2,260 units (down 497 units YoY)

Moriguchi Project
January 2013: Established Wisteria Homes Co., Ltd. inOsaka City.
July 2013:

Moriguchi City, Osaka Pref.
(33 units)

Started up operation on a full-scalebasis. Acquired land for two projects(scheduled to be recorded for FY2015).

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

37Real Estate Business: Priority measures for FY2014(Million yen)

Net Sales

18,00015,017

15,00012,000
9,000

8,643

Shrinking of themarketExpanding the scope ofbusiness• Declining birthrate andaging population• Areas (Tokyo metropolitan area, Tohoku
area and Kinki area)

Cost increase

Securing profitability of
project

6,000
3,000
0
2013/12(Million yen)

2014/12(forecast)

Segment income

1000

889

• ・Construction cost
• ・Land cost

• Establishing a construction
management (CM) system.
• Specifications designed toaccommodate the needs of targets• Reconsidering the sales technique

800
600

Accommodating changes in
the market environment

511

2.9%

400
200
0
2013/12

2014/12(forecast)Rebuilding businessportfolio
Condominiums / single-family housing /housing lot for sale / others
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

38

III. Shifting to a Holding Company System

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

39Trends in Consolidated Earnings and the Medium-term Management Plan
Net Sales

Current medium-term
management plan

(Million yen)

100,000(Million yen)

6,000
5,000

80,00060,000OperatingincomeFall of theLehman Brothers

4,000
3,000

40,0002,000
20,0001,000
00Operating income (right axis)

Net sales

We need to restructure the organizational system of the Group to further
accelerate the growth speed.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

40Shifting to a Holding Company System
We have resolved to shift to a holding company through company split
with July 1, 2014 as the target date.
Purposes of shifting to aholding company system
Transferring authority to each business and clarifying theallocation of responsibilities.
Establishing a system that allows agile and flexible
decision making for the launch of new businesses andM&A, etc.

Adopting a holding company
system is essential

Accelerating the Group’s sustainable growth bymaintaining and advancing the strong governance system.

Future schedule
February 17, 2014
Board of Directors for resolutionof absorption split

March 20, 2014 (planned)
General Meeting of Shareholders
for resolution of absorption split

How to shift to a holding
company system

The Company plans to succeed business to a wholly-owned subsidiary through anabsorption-type company split (the “Company Split”) with the Company as a splitting
company.
After the Company Split, the Company plans to change its trade name and maintain thelisting of its stock.

July 1, 2014 (planned)
Shifting to a holding company
systemCopyright © WORLD INTEC CO.,LTD. All Rights Reserved

41

Targets to Be Achieved

1

Establishing management and organizational frameworks that allow eachbusiness segment to operate independently Separating formulation of management strategy and execution of operations to establish an organizationalframework for managing the entire Group.
 Transferring authority to each business and clarifying the allocation of responsibilities.
 Speeding up the management by simplifying the decision-making process and promoting streamlining.
 Increasing independence and competitiveness by stepping up collaboration within each business segment
and placing each business segment on an equal footing.

2

Actively investing in new growth fields
 Actively allocating management resources in business fields with growth potential.
 Actively utilizing M&A to launch new businesses agilely and expanding the scale and scope of businesses.

3

Further enhancing corporate value
 Enhancing corporate value by boosting shareholder returns based on sustainable growth of the Group.

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

42

The Group’s Organizational Structure after Adopting the Holding
Company System(tentative name) World Holdings(Condominium business / selling agency in the Tohoku area)

World iCity Co., Ltd.
(Selling agency / contract selling business)

World Resiselling Co., Ltd.

）(Contract selling business / real estate loan consulting business)

Nichimo Real Estate Co, Ltd.
(Condominium business / selling agency in the Kinki area)

Wisteria Homes Co., Ltd.
(Condominium business / condominium managementbusiness in the Tokyo metropolitan area)

World Residential Co., Ltd.
(Selling office automation equipment andcommunications equipment)

Best IT Business Co., Ltd.
(Selling communications equipment [Softbank
shop business / WILLCOM shop business])

Network Solution Co., Ltd.
(Selling communications equipment [au shop
business])

Mobile Service Co., Ltd.
(Call center business)

e-support, inc.
(Administrative contract business / contract
work / worker dispatching services)WORLD INTEC FUKUSHIMA CO.,LTD

(Total worker dispatching services)(Newly established) WORLD INTEC
Co., Ltd.
(Entrusted system development business, etc.)

GEOGRAPHIC INFORMATION OF
KYUSHU, INC.
(Personal computer school operation, etc.)

Advan Co., Ltd.
(Clinical Research Outsourcing business (CRO ))DOT International Co., Ltd.
(Staff placement and worker dispatching services
overseas for the manufacturing sector)

WORLD INTEC TAIWAN CO., LTD.

43
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

Real
不動産ビジネスestate businessInformation 情報通信ビジネス& telecommunication business
Human resources
人材・教育ビジネス
education business

52%
97%
97%
100%

100%
100%
100%
100%
100%
4%
3%
3%
51%
100%
100%
100%
100%
100%

Shareholder Returns
Maintaining dividend increase in line with profit growth(yen)Dividend per share

14.3

15.0

10.0

10.0

8.5

5.0

4.3

4.5

4.5

FY2009FY2010FY2011

0.0
FY2012FY2013Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

FY2014 (forecast)

44

APPENDIX

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved45World Intec Corporate Profile
CompanyWORLD INTEC CO., LTD.

Head Office

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

EstablishedFebruary 12, 1993

CEO

Eikichi Iida

Main
Businesses

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

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

Workforce

9,373 (consolidated/ as of December 31, 2013)

Locations

63 (consolidated/ as of December 31, 2013)

Listed Date

February 9, 2005 (JASDAQ Stock Exchange / Stock Code 2429)
Link to the Official Facebook Page

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

46

Human Resources and Education Business: Reference Data
Trends in sales of factory business by region and industry sector
Factory business[Percentage of sales by region]
KyushuChugoku[Number of staff]
Kansai

Tokai

Kanto

TohokuJapan

TaiwanTotal

FY2013

32.6

31.3

7.2

3.6

17.2

8.1

2013/4Q

5,424

236

5,660

FY2012

40.5

28.8

7.0

3.3

13.5

6.9

FY2012

6,089

339

6,428

FY2011

44.9

24.9

7.2

5.5

14.0

3.5

FY2011

4,846

529

5,375

*Number of staff until FY2012/1Q includes that in WORLD INTEC FUKUSHIMA but not thereafter.

[Percentage of sales by business category]
Semiconductor

Electrical &electronics

Machinery

ChemicalAutomobile

Environmental
energyLogistics

Food/
consumables

Precisionequipment

Pharmaceuticals

Others

FY2013

23.7

21.6

8.2

3.3

10.2

5.3

10.8

3.9

1.9

0.0

11.0

FY2012

25.0

18.8

8.2

3.3

11.5

4.6

6.7

3.2

6.3

0.2

12.2

FY2011

33.9

13.8

10.5

6.1

8.5

6.3

2.8

2.8

2.4

0.4

12.5

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

47

Human Resources and Education Business: Reference Data
Trends in sales of technology business by region and industry sector
Technology business[Percentage of sales by region][Number of staff]

KyushuChugoku

26.2
27.9

10.0
3.7

3.1
1.9

20.0
16.2

4.5
5.9

FY2013

FY201236.3
44.3

FY2012

1,263
1,380

FY2011

47.2

31.4

3.2

1.8

12.4

4.1

FY2011

1,374

Machinery

Logistics

Precision Environmental
energyequipment

Pharmaceuticals

Chemical

FY2013Kansai

Tokai

Kanto

TohokuJapan[Percentage of sales by business category]SemiElectric &Automobile
conductor
electronics

Food/
Information &consumables telecommunications

Others

FY2012

51.0
58.9

7.1
6.2

4.7
5.3

1.3
1.4

0.1
0.0

1.3
1.4

4.8
4.1

0.1
0.3

0.4
0.5

0.2
0.1

18.5
14.8

4.8
5.2

FY2011

65.2

3.9

5.3

1.0

0.0

1.1

3.3

0.1

0.6

0.0

11.0

6.8

FY2013Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

48

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

TEL

03-3516-1122

E-MAILirinfo@witc.co.jp

URL

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

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

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved49

FY2013 Financial Results

February 18, 2014
World Intec Co., Ltd
JASDAQ (2429)

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

I. Summary of Financial Results
II. Trends by Business Segment
III. Shifting to a Holding Company System

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved2World Intec Group: Three Core Businesses
Empower people through work
Human resources education businessConnect people with work - New work style -World Intec Co., Ltd R&D:
 Technology:
 Factory:

WORLD INTEC FUKUSHIMA CO., LTD

Dispatch of researchers
Dispatch of engineers
Dispatch of manufacturers,
Contract work
■ CB:
Dispatch of sales personnel■ Construction:
Dispatch of construction
managing engineers■ OCS:
Dispatch of clerical workers■ Repair:Entrust equipment repair■ Administrative: Personnel training contract■ Overseas:
Parts procurement

DOT International Co., Ltd.
Advan Co., Ltd.
 PC school operations business, educational materials,
software sales business

GEOGRAPHIC INFORMATION OF KYUSHU, INC.

Best IT Business Co., Ltd.
 Corporate businessWORLD INTEC SHANGHAI CO., LTD.
[non-consolidated] Staff placement, consulting and education
business

 Map information, entrusted system development ,disabled
persons’ employment support, education business

Bring people together through IT- New style of communication - Call center business Insurance business Staff placement and worker dispatching
services for the manufacturing sector

 Clinical Research Outsourcing business (CRO)

Information &telecommunication businesse-support, inc.

<Overseas>WORLD INTEC TAIWAN CO., LTD.

 Administrative contract businessNetwork Solution Co., Ltd.
 Softbank business WILLCOM business

Mobile Service Co., Ltd.
 KDDI business

Real estate businessConnect people with housing- New style of urban development World Residential Co., Ltd.
 Condominium business (theTokyo metropolitan area)
 Condominium managementbusiness

World Resiselling Co., Ltd Selling agency

Nichimo Real Estate Co, Ltd.
 Real estate loan consulting
business

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

Wisteria Homes Co., Ltd.

 Condominium business (theKinki area) Selling agency

World iCity Co., Ltd.

 Condominium business (theTohoku area) Selling agency

3

I. Summary of Financial Results

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

4

FY2013 Summary
Net sales, operating income, ordinary income and net income reachedrecord highs.

FY 2012actual

FY 2013
actualChangeMillion yen, %Net sales

53,007

Operating income

1,223

Ordinary income

1,290

Net income/loss

658

EPS (yen)

40.3

Dividend per share (yen)

8.5

FY 2013

YoY

56,450 3,442
2,120
896
2,164
874
834
176

Pct.
Changelatestforecast*

Comparison withearnings forecast
ChangePct.
Change6.5

56,487

73.3

1,853

△37

267

△0.1

67.8

1,793

371

20.7

26.8

712

122

17.1

49.6
10.0

14.4

42.4
8.5
*Announced on February 12, 2013

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

5Trends by Business Segment
Million yen, %Net sales
Factory business

Segment income
Profit margin
Net sales

Technology business

Segment income
Profit margin
Net sales

R&D business

Segment income
Profit margin

Information
technology &telecommunications
business

Net sales
Segment income
Profit margin
Net sales

Real estate business

Segment income
Profit margin
Net sales

OthersSegment income
Profit margin
Net sales
Elimination or corporate

Total

Operating income
Operating margin

FY2012
actual

FY2013
actualYoY
ChangePct.
ChangeFY2013full-year
forecast*

17,893489

18,738
1,083

844
594

4.7
121.5

21,488
1,142

2.7%

5.8%

－

－

5.3%

6,197
356

6,424
571

226
215

3.7
60.4

7,201
573

5.7%

8.9%

－

－

8.0%

2,984
269

3,693
194
5.3%

11,658408

13,092
441

1,434
33

23.8
△ 27.8

4,053
443

9.0%

709
△74

3.5%

3.4%

8,794
462

8,683
511

5.3%

5.9%

5,479
211

－

10.9%

12.3
8.2

11,000
300

－

－

2.7%

△111
49

△ 1.3
10.8

8,215
390

－

4.8%

5,818
281

339
70

6.2
33.1

4,528
205

3.9%

4.8%

－

－

4.5%

53,007△972
1,223

56,450
△964
2,120

3,442
△8
896

6.5

56,487△1,202
1,853

2.3%

3.8%

－

－

73.3

－

3.3%

FY2013
progress against
the full-year
forecast

87.2%
94.8%
89.2%
99.7%
91.1%
43.8%
119.0%
147.0%
105.7%
131.0%
128.5%
137.1%
99.9%
114.4%-*Announced on February 12, 2013
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

6Change in Net Sales by Segment
Promotion of structural reforms
Shifting from production
technology to design
development(Million yen)

60,000Large-scale projects inElectric & Electronics andLogistics categories
boosted sales

Factorybusiness844

55,000Technology
business
226

Staff increased by 100
through active recruitment
Direct contribution of DOT¥550 million

Strong sales ofsmartphones and tablets

Information &telecommunications
business
R&D
1,434
business
709
Real estatebusiness▲111

50,000Growth of CB
business

Others339

Decrease in the number ofhouses built for sale

FY201253,007FY201356,45045,000¥3,442 million
40,0002012/12

ﾌｧｸﾄﾘｰ事業

ﾃｸﾉ事業

Ｒ＆Ｄ事業

情報通信事業

不動産事業

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

その他

2013/127

Changes in Operating Income by Segment(Million yen)

2,500

Profitability andimprovement ofcost of businesses
in which upfront
investments
were madeFactorybusiness
594

2,000

1,500

Sales expenses were carriedover to the next period as aresult of switching to sellingcompleted properties.

Shifting to a highunit pricebusiness throughstructural reforms

Investment in
new businesses
Renovation andstore shut downs

Technology
business
215

Information &Real estate
telecommunications businessbusiness
49
33

Others70

Growth of CB
business

Eliminations
or corporate
8

R&D
business▲74

Goodwill amortization associatedwith making DOT a subsidiary▲102

FY2013
2,120

1,000

500

FY2012
1,223¥896 million0

2012/12

ﾌｧｸﾄﾘｰ事業

ﾃｸﾉ事業

R&D事業 情報通信事業 不動産事業

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

その他

消去・全社

2013/128

Financial Condition B/S
Total assets(Million yen)

30,56630,00023,805Current assets•••

20,00028,157 (+6,877)

Cash and deposits:

5,970 (+1,073) Increase in newly
consolidated subsidiaries
Notes and accounts receivable-trade: 5,427 ( +768) Increase in sales
Real estate for sale in process:
14,195 (+4,140) Acquisition of commercial
premises

28,157

Fixed assets

21,27910,000•0(Million yen)

2,525

2,409

End of FY2012

End of FY2013

Fixed Assets

Current Assets••

Total liabilities/net assets
30,56630,00023,805
19,59420,000Property, plant and equipment:

637 ( △96) Renovation and closedown of ESP
stores, impairment loss on offices
Intangible assets:
655 (△102) Goodwill of DOT
Investments and other assets: 1,116 ( +81) Deferred tax assets

Current liabilities•••

Fixed liabilities
4,288

•

5,826

6,683

•

End of FY2012

End of FY2013

2,245
0
Net assets

19,594 (+3,860)

Short-term debt:
10,931 (+1,543) Fund for purchase of real estate for sale
Accounts payable-Real
Estate Business:
1,079 (+641)
Income taxes payable:
955 (+676) Increase due to WITC and WR

15,733
10,0002,409 (△116)

4,288 (+2,043)

Long-term debt:

3,617 (+1,814) Fund for purchase of real estate
for sale
Provision for retirement benefits: 576 (+198) Change from the simple method
to the principle method

Fixed liabilities

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

9Cash Flow
•
•
•
•
•

Acquisition of tangible fixed assets
Acquisition of intangible fixed assets

Net increase in short-term debt 1,874
Net increase in long-term debt 1,483
Dividends paid
△142

•
•
•
•
•
•

(Million yen)
9,000
8,000

Financing
CF
3,213

7,000
6,000

△82
△72

Investing CF△141

Net income before income taxes 1,940
Trade payables
915
Provision for retirement benefits
198
Trade payables△757
Real estate for sale
△4,603
Income taxes△541

OperatingCF△2,012

5,000
4,000
3,000
2,000
1,000

Cash andcash
equivalents
at beginningof year
4,901

Cash andcash
equivalents
at end of
year
5,974

Up ¥1,073 million

0
FY2012Financing CF

Investing CF

Operating CF

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

FY'201310

Summary of FY2014 Business Forecasts
FY2013
actual

FY2014
forecast

Million yen, %Net sales
Operating income
Ordinary income

56,4502,120
2,164

Net income

834

EPS (yen)

49.6
10.0

Dividend per share (yen)YoY
Change70,620 14,170
560
2,680
407
2,571
367
1,201

Pct.
ChangeFY2014FY2014
Forecast Forecast for
3Q&4Q
for 1Q&2Q(cumulative) (cumulative)

25.1
26.4
18.8

33,298910
863

37,321
1,769
1,708

44.0

342

859

20.3

51.1

71.4
14.3

1

Expect 25.1% increase in sales and 26.4% increase in ordinary
income YoY in FY2014

2

Promoting strategies for expanding sales and increasing sales andprofits.

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

11

FY2014 Business Forecasts by Segment
FY2013
actual

FY2014
forecast

Million yen, %Factory business

12,777

215

19.8

466

832

5.8%

5.7%

－

－

4.6%

6.5%

6,424

984

15.3

3,614

3,794

117

20.5

311

376
9.9%

Segment income

Segment income
Net sales
Segment income
Profit margin
Net sales
Segment income
Profit margin
Net sales
Segment income
Profit margin

571

7,408
688

8.9%

9.3%

－

－

8.6%

3,693

754

20.4

2,024

2,422

194

4,447
289

95

49.0

107

182

5.3%

6.5%

－

－

5.3%

7.5%

13,092

1,397

10.7

7,494

6,994

441

14,489
489

48

10.9

294

194

3.4%

3.4%

－

－

3.9%

2.8%

8,683

6,334

72.9

7,076

7,941

378

74.0

262

626
7.9%

511

15,017
889

5.9%

5.9%

－

－

3.7%

5,818

450

7.7

2,878

3,390

281

6,268
224

173

3.6%

△ 20.3

50

4.8%

△57

－

1.7%

5.1%

25.1

33,29837,321

26.4

910

1,769

2.7%

4.7%

Elimination or corporate

56,450△964

Operating income

2,120

Net sales
Total

10,210

1,083

Profit margin

Others

22.7

Segment income

Net sales

Real estate business

4,250

22,988
1,299

Profit margin

Information technology& telecommunications
business

Pct.
Change18,738Net sales

R&D business**

ChangeNet sales
Profit margin
Technology business

FY2014
Forecast for
3Q&4Q(cumulative)

FY2014
Forecast for
1Q&2Q(cumulative)

YoY

Operating margin

3.8%

－

70,620 14,170－△1,200
2,680
560
3.8%

－

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

12II. Trends by Business Segment

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

13

Human Resources and Education Business：
Business model and business segments

Worker dispatch
General worker dispatching

Businesssegment

Worker dispatching underwhich worker are
dispatched as those otherthan specified workers

Specified worker dispatching
Worker dispatching underwhich only regularlyemployed workers aredispatched (26 special job
categories)

Contract work
Contract works whose goal
are the completion of work
(Article 623 of the Civil Code)Remuneration is paid not forhours worked, but fordeliverables.

Factorybusiness

Dispatch of
manufacturers

Technology
business

Dispatch of production
technology engineers

Dispatch of design
development engineers

Production technology
contracting
SI / Development contracting

R&D
business

Dispatch of research
assistants

Dispatch ofresearchers

Clinical contracting(DOT International)

Dispatch of sales
personnel (CB business,
OCS business)

Dispatch of construction
managing engineers(construction business)

Administrative(World Intec Fukushima)

OthersManufacturing andlogistics contracting

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

14

Human Resources and Education Business：Move for revision of law
Purpose ofrevision

1. Facilitating the use of dispatched workers by businesses
Þ Revitalizing the economy
2. Improving job stability of dispatched workers
Þ Stabilizing employment

Present situation
 The maximum period for receiving fixedterm worker dispatchingÞThree years or less for the same job
 Restrictions based on the 26 special job
categories* 26 job categories that require high levels of
expertise and skills(Software developer, machine designer,interpreter, secretary, etc.)* Indefinite-term employment

Ifmaterialized,

Proposed revision(beginning from the spring of 2015)
 The maximum period for receiving fixedterm worker dispatchingÞ Three years or less for the samedispatched worker
Deliberation
 No limitation period for workers on
indefinite-period contracts with worker
dispatch operators.
 Abolishing the 26 special job categories
 Shifting from the notification system to theapproval and licensing system

Revitalizing the worker dispatching market
Working to the advantage of staffing
companies with financial strength

Market expansion
Acceleration of
shakeout

Serving as a tail wind for the World Intec Group
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

15

Human Resources and Education Business：
Macro environment
Trends in the number of temporary staff andtemporary staffing sales nationwide

Unit: 10 thousand persons

Unit: Trillion yen

198

200

8
Specific temporary staff

174
150

157

152

7

General temporary staff
Number of temporary staff

148

6
137
114

100

92

5
4
3

50

2
1

0

0
2006

2007

2008

2009

2010

2011

2012

2013

Note: The part of the graph indicated by the dashed lines shows reference value estimated by the Company using the ratio for 2010 because the relevant value has
not been released by Ministry of Health, Labour and Welfare.
Source: Based on the “totals of the annual report of the temporary staffing business" by the Ministry of Health, Labour and Welfare, and the “labor force survey (basic
count)” by the Bureau of Statistics of Ministry of Internal Affairs and Communications

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

16

Human Resources and Education Business：
Transition in the percentage of contract work by segment
The percentage of contract work is increasing in the Factory businesssegment with the expansion of sales scale in the logistics field.
Factory business
0%50%

Technology business
0%

100%

50%

Corporate

100%

0% 18.5％

50%

100%

1Q

35

65

1Q

54

46

1Q

35

65

2Q

40

60

2Q

56

44

2Q

37

63

3Q

46

54

3Q

54

46

3Q

41

59

4Q

49

51

4Q

59

41

4Q

45
13.6%

55

Full-year

50

50

Full-year

56

44

Full-year

40

60

Contract work

Worker dispatching

Contract work

Worker dispatching

FY2012 (full-year)

Contract work

Worker dispatching

FY2013 (full-year)Factory business Contract work : Worker dispatching 35:65
Þ 50:50®Mainly due to the impact of significant increases in sales in the Electric & Electronics andLogistics (e-commerce) categories.

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

17Human Resources and Education Business：

Factory business Full-year results of large-scale projects

700
Sales

80,000600

BudgetActual assignment

60,000Planned assignment

40,00020,0000

140,000
120,000

250,000

600

80,000400

300

60,000300

200

40,000200

100

20,000100

Planned assignment

0

500

0
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

 Project C Electric & Electronics category

Thousand yen

700
600

100,000

80,000500

200,000

Actual assignment

400

0

Sales
BudgetActual assignment
Planned assignment

Budget700

100,000

Persons

300,000

Sales

500

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

Thousand yen Project B Logistics category400

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

60,000700
600

Persons

100,000

Thousand yen

Persons Project A Liquid Crystal category
Persons

Thousand yen

500
400

150,000
300
100,000

300

40,000200

50,000100
00Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

200
20,000100

00Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.

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

18

Human Resources and Education Business：

Factory business Sales composition and number of staff and personnel by segment
Expansion of the smartphone related electrical & electronics segment and thelogistics segment, as well as an overall cost improvement is underway.
Sales composition by businesssegment (%)

Transition in the number of staff andpersonnel in service*(Persons)

25000

7,000
20000

15000

10000

20.2
24.2
6.3
10.5
2.8
8.5
13.8

5000

33.9

25.3
4.6
8.2
6.7
11.5

5.3
8.2
10.2
10.8

18.8

21.6

25.0

23.7

6,000
5,000
4,000

13.6%

3,000
2,000
1,000

0

FY2011
Semiconductors
Logistics
Machinery
Others

FY20122.9%

FY2013

Electrical & electronics
Automobiles
Environment & Energy

10.1%

0

Number of staff

Personnel from other companies / dispatched staff

Year/
Month

* The graphs show sales, and the figures show the sales composition ratio.
* For a detailed breakdown of data for other businesses, please refer to thereference data.

* The number of staff and the number of personnel in service are thesame in December 2012 and before.

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

19Human Resources and Education Business：

Factory business Transition in sales and segment income(Million yen)

(Million yen)

6,000.0600

5,000.0426.6

4,000.0344

400

3,000.0215.5
2,000.0

191.8
97.7

1,000.0

188.3
149.3

136.7

169

200

118.9

102.1

29.9
0

0.0

1Q
Sales (FY2011)

Sales (FY2012)

2Q
Sales (FY2013)

3Q
Segment income (FY2011)
Segment income (FY2013)

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

4Q
Segment income (FY2012)20

Human Resources and Education Business：
Factory business Efforts to step up recruitment(Persons)

Number of visitors

12000
10529

8000

(Persons)

Number of users

8000

0

5670

6000

Former Jobpaper New Jobpaper (4(over the 8-month
months)period)The number ofapplicants via the
new Jobpaper has
grown
dramatically as aresult of making
the sitecompatible withsmartphones.

2000
0

6362

3156

39224

30000
20000

22491

10000

Former Jobpaper(over the 8-month
period)New Jobpaper(over the 4-month
period)(Persons)

Number of applicants

50

13.6%

0

Former Jobpaper New Jobpaper(over the 8-month (over the 4-month
period)period)

327

40
30

Number of PV

40000

4000
4000

(PV)

33

2.9%

20
10
0

Former Jobpaper(over the 8-month
period)New Jobpaper (overthe 4-month period)* Comparison between the averages of the 8-month period (Jan.-Aug.) under the former Jobpaper and the 4-month
period (Sep. – Dec.) under the new Jobpaper
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

21

Human Resources and Education Business：
Factory business Priority measures for FY2014

Winning large-scale orders by strengthening marketing efforts and securing
human resources by making the most of the new JOBPAPER.
(Million yen)

Net sales

25,00020,00022,98818,738

Securing humanresources Effectively using the unique registration management system
 Attracting applicants by increasing exposure and building a brandfor the new JOBPAPER.
 Increasing staff retention during the initial period after job
assignment.

Continuously
accommodating
growth sectors

 Actively conducting marketing for businesses with stable and robust
earnings
 Accommodating the logistics sector (e-commerce) where the market
expansion continues.
 Accommodating the ups and downs of production of raw materials,
parts and components makers.

Exploiting
recovery in theexisting sectors

 Semiconductor and automobile sectors

Winning largescale orders

 A new project in the industrial machinery sector
 Working on new logistics bases
 Shifting to a high value-added business and improving cost

15,00010,0005,000
02013/12

2014/12(forecast)(Million yen)

2,000

Segment income

1,500

1,299
1,083

1,000
500
0
2013/12

2014/12(forecast)

Attempting to increase sales and profits by developing a system for reliably
meeting customers’ needs and exploiting demand increase.

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

22

Human Resources and Education Business：

Technology business Sales composition by business and number of staff
The shift from semiconductor production technology to design development of automobile
and information & telecommunications services is underway.
Sales composition by businesssegment (%)*

7000

Transition in sales and number of staff(Million yen)

(Persons)

1,800
6000

16.5
5000

4000

1,000

16.9

18.7

791

1,500

2.9
3.9

1.4
6.2

7.0
7.1

11.0

14.8

18.5

1,200

648

576
608

900

800
600
400

3000

600
65.2

2000

58.9

51.0

200

300

1000

0

0
2012 2012 2012 2012
2.9%2013 2013 2013 2013
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q

0

FY2011FY2012FY2013

Others

Machinery

Automobiles

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

Design development sales
Production technology sales
Number of staff in production technology
Number of staff in design development* The number of staff is the three-month average.
** The number of staff includes external staff for 4Q FY2013 and beyond.

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

23

Human Resources and Education Business：

Technology business Priority measures for FY2014
Continuing to promote enhancement of marketing capability andstructural reforms through collaboration among Group companies.

(Million yen)

Net Sales

10,000
8,000

6,424

7,408

6,000

Production
technology
field Enhancing marketing capability throughcollaboration with the Factory business.
 Cost improvement

Designdevelopmentfield Joint project with leading manufacturers
 Fostering of repair engineers Fostering of engineers by stepping up
collaboration with Advan.
®Boosting the number of staff.

4,000
2,000
0
2013/12(Million yen)

2014/12(forecast)

Segment income

1000
800
600

688

 Expanding acquisition of new contracts forhigh productivity business.

571

400

Establishing a robust profit base that is less susceptible tochanges in the semiconductor market conditions.
Expanding higher value-added design development category.

200
02013/12

2014/12(forecast)
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

24

Human Resources and Education Business：

R&D business Sales composition by business segment and the number of staff
Actively recruiting personnel against the backdrop of synergy effect with DOT
and a rise in demand in the pharmaceutical and biotechnology fields.

(Million yen)

Sales composition by business field (%)

4,000(Million yen)Transition in sales and number of staff

1,200

3,500

800

680

12.0
1,000

3,000
2,500

6.0
36.0

2,000
1,500

574

19.0
42.0

800

500
400
300

400
1,000
500

50.0

45.0

200

46.0
200

0
FY2011FY2012FY2013

Pharmaceutical /biotechnology

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

700
600

600

44.0

(Persons)

100
0

0
2012
3Q

2012
4Q

2013
1Q

2013
2Q

2013
3Q

2013
4Q

DOT sales
R&D sales (excluding DOT)
Number of staff in R&D (excluding DOT)
* The number of staff is the three-month average.

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

25

Human Resources and Education Business：
R&D business Priority measures for FY2014

Promoting customer acquisition by leveraging synergy effects in marketing(Million yen)

Net Sales

5,000
4,000

4,447
3,693

3,000
2,000
1,000
0
2013/12(Million yen)

2014/12(forecast)

Synergyeffects

 Expanding the customer share (marketingcollaboration for WITC’s customers) Increasing the number of sales staff (training of sales
staff by DOT)
 Increasing the rate of dispatched workers in
employment.

Segment income

500
400

289

300
200

194

Expanding the scope of business in promising areas
such as regenerative medicine.

10002013/12

2014/12(forecast)

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

26

Human Resources and Education Business：
R&D business Growth strategies centering on DOT
Synergy effects (growth strategies)

Three measures to accomplish growth strategies

3,000(million yen)
50.0%

2,500

45.0%
40.0%

2,000

35.0%

Strengthening
marketingcapability(launching Sales
Department under
the initiative of WI)•Sharing customer resources with WITC
•Introducing systematic marketing•Introducing a new customer acquisition
method (with prospects of acquiring several
major customers)

Stepping up
recruitment(launching
Recruitment
Department under
the initiative of WI)•Collaborating with WITC for sharing humanresources.
•Start hiring new graduates (10 persons in thefirst year).
•Recruit by using an original method(recruitment channels other than staff
placement agencies)

30.0%

1,500

Investment inhumanresource
development

1,000

23.9%

25.0%
23.0%

21.9%

20.0%
15.0%
10.0%

9.5%

500

5.0%

4.7%

0.0%

0

2014
Net salesThe
numberof staff

2015

2016

Operating income

2017

2018

Operating income margin

2014

2015

2016

2017

2018

81

105

171

219

286

Areas to bestrengthened in the
future• Disease area (cancer / central nerve /circulation organs)• Clinical study (regenerative medicine
such as embryonic stem cells)• Global (Domestic liaison office ofoverseas manufacturers)

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved27

Human Resources and Education BusinessCB (dispatch of sales personnel) Business (Other business segment)
By promptly responding to request for staffing,
we are exploiting demand for certain.

(Million yen)

Sales composition ratio in otherbusiness segment*(Persons)

6,000
Others

5,000
4,000

1,000

763

800

CB

38.2

Administrative
contact

48.9

583

600

637

770

686

491
400

3,000
2,000

Transition in the number of staff in
CB business

33.2
23.8

200

27.3

28.6

FY2012FY20130
2012/12 2012/12 2013/12 2013/12 2013/12 2013/12
3Q
4Q
1Q
2Q
3Q
4Q

0

* The number of staff shows the three-month average.

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

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved28

Human Resources and Education Business：
Others Priority measures for FY2014(Million yen)

Expanding business area and size

Net Sales

8,000
6,000

5,818

6,268

CB

4,000

• Expanding the apparel business• Expanding the casual area

2,000
0
2013/12(Million yen)

2014/12(forecast)

Segment income

OCS(Office career
support)• Dispatch of clerical workers• Dispatch of call center operators

500
400
300

282
224

200

Construction• Dispatch of construction
management engineers• Design assistants, CAD operators• Field clerical workers

1000
2013/12

2014/12(forecast)

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved29

Human Resources and Education Business：
Realignment of business segment (planned)

Business segments are planned to be realigned because the other business segment expanded in the scale ofbusiness to exceed that of independent business segments.
(Million yen)

Other business segment(Million yen)

Realignment of business segment

8,000

8,000

Geographic Information of
Kyushu, 403

7,000

7,000

W
Fukushima,
1644

20,000Construction, 447
Repair, 193

6,000

6,000
5,000
4,000
3,000

W
Fukushima,
1644

5,000
4,000

Contract workin Fukushima,
633
Repair, 193

18,738

CB,
1931

2,000
Construction,
447
Geographic
Information of
Kyushu, 403

OCS59

5,000

3,693

1,000

ADVN, 4510CB, 1,931
AＤＶＮ, 451

00FY2013 (full-year)

10,000

6,424

3,000

2,000
1,000

15,000

OthersSales &
Marketing

R&D

Technology

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

30

Information & Telecommunications Business:

Trends in total unit sales of mobile phones and smartphones

Units

320,000
300,000

71,19868,404¬ Annual sales of morethan 300 thousand units
Timing of sell-through*

240,000

160,000

67,681

66,04258,81480,34587,77059,53880,000

4Q Jul. – Sep.
3Q Apr. – Jun.
2Q Jan. – Mar.
1Q Oct. – Dec.

73,454

83,19485,410

Increasing withsales of
iPhone 5s

2012

2013

2014

49,46700
2011

Note: The above are consolidated fiscal years and are 3 months behind the calendar years.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved31

Information & Telecommunications Business:
Priority measures for FY2014

Strengthening earnings capacity by building the largest shop network ineach region and boosting sales of new merchandise.
Net Sales(Million yen)

16,000Strengthening humanresource development andcapital investment, including
opening, relocation andrefurbishment of stores.

14,48913,092

12,0008,000

For
individual
customers

4,0000
2013/12

2014/12(forecast)

Expanding sales areas byleveraging our strengths,
such as operating walk-in
insurance and mobile phone
shops, etc.
13.6%

(Million yen)Segment income

600
500

441

Strengthening the
顧客サポート体制強化
customer support system

489

2.9%

400

For
corporate
customers

300
200

Strengthening the sales
LED照明販売体制強化
system for LED lamps

10002013/12

2014/12(forecast)
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

32Real Estate Business: Status of marketing activities for the year
Promoting purchase by taking business profitability into
account and community-based sales.

Purchasesituation

Deliverysituation

Tokyo metropolitan area:
Tohoku area:
Kinki area
Total

11 properties
4 properties
2 properties
17 properties

Equivalent to sales of
27.3 billion yen

In-house developed properties: 94 properties ( Tokyo metropolitan area: 94 properties)
Contract selling properties:
165 properties ( Tokyo metropolitan area: 74 properties;
Tohoku area: 91 properties)*About 90 percent of contracted, internally developed properties were delivered.

385 properties were contracted for sale.

Sales
situation

In-house developed properties:
Contract selling properties:

53 properties for the current fiscal year;
186 properties for the next fiscal year or thereafter
68 properties for the current fiscal year;
78 properties for the next fiscal year or thereafter

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

33Real Estate Business:

Condominiums to be supplied in the Tokyo metropolitan area (World Residential)
FY20142 projects / 73 units

5 projects / 352 units

FY2015

Arai Yakushi-mae Project

Residential Monzennakacho East

Nakano-ku, Tokyo (37 units)

Koto-ku, Tokyo (28 units)

Shinagawa Nakanobu II
Project
Shinagawa-ku, Tokyo (52 units)

Toyocho Project
Koto-ku, Tokyo (107 units)

Ichinoe Project
Edogawa-ku, Tokyo (97 units)

Branz Yokohama
Bashamichi Residential(joint project)

Residential Tsunashima

Naka-ku, Yokohama(130 units)(59 units)

Kohoku-ku, Yokohama (45 units)

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

34Real Estate Business:
Single-family housing to be supplied in the Tokyo metropolitan area (World Residential)
FY2014

1 project (11 units)

Background factors behind branching out
into the single-family housing businessResidential Noie Komazawa
Setagaya-ku, Tokyo (11 units)

1

Effective use of property
information

2

Drawing on advanced productplanning expertise cultivated in
the condominium business3

Diversification of business cycle

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

35Real Estate Business:

Properties to be supplied in Tohoku area (World iCity)
FY20142 projects (126 units)

2 projects (271 units)

FY2015Residential Aoyama
EkimaeResidential Minami Sendai
Taihaku-ku, Sendai City (54 units)

Aomori Pref.

Aoyama, Morioka City (38 units)

Akita
Pref.
Iwate Pref.

Yamagata
Pref.

Miyagi Pref.

Taihaku-ku, Sendai City (70 units)

Residential Kaiseizan Koen
Koriyama City, Fukushima Pref.
(72 units)

Asuto Nagamachi Project

Fukushima Pref.

Sendai City Reconstruction
Public Housing
Taihaku-ku, Sendai City (163 units)

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

36Real Estate Business: Kinki area (Wisteria Homes)
 Kinki area:favorable market environment 

2 projects (100 units)

FY2015<Condominium market trends in the Kinki area in 2013>
Number of units supplied:
Average price:

24,684 units (up 6.1% YoY)

Toyonaka Project
Toyonaka City, Osaka Pref.
(67 units)

34,960,000 yen (up 580,000 yen YoY)

Monthly contract rate:
Property inventory:

79.6% (up 2.7 percent point YoY)
2,260 units (down 497 units YoY)

Moriguchi Project
January 2013: Established Wisteria Homes Co., Ltd. inOsaka City.
July 2013:

Moriguchi City, Osaka Pref.
(33 units)

Started up operation on a full-scalebasis. Acquired land for two projects(scheduled to be recorded for FY2015).

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

37Real Estate Business: Priority measures for FY2014(Million yen)

Net Sales

18,00015,017

15,00012,000
9,000

8,643

Shrinking of themarketExpanding the scope ofbusiness• Declining birthrate andaging population• Areas (Tokyo metropolitan area, Tohoku
area and Kinki area)

Cost increase

Securing profitability of
project

6,000
3,000
0
2013/12(Million yen)

2014/12(forecast)

Segment income

1000

889

• ・Construction cost
• ・Land cost

• Establishing a construction
management (CM) system.
• Specifications designed toaccommodate the needs of targets• Reconsidering the sales technique

800
600

Accommodating changes in
the market environment

511

2.9%

400
200
0
2013/12

2014/12(forecast)Rebuilding businessportfolio
Condominiums / single-family housing /housing lot for sale / others
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

38

III. Shifting to a Holding Company System

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

39Trends in Consolidated Earnings and the Medium-term Management Plan
Net Sales

Current medium-term
management plan

(Million yen)

100,000(Million yen)

6,000
5,000

80,00060,000OperatingincomeFall of theLehman Brothers

4,000
3,000

40,0002,000
20,0001,000
00Operating income (right axis)

Net sales

We need to restructure the organizational system of the Group to further
accelerate the growth speed.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

40Shifting to a Holding Company System
We have resolved to shift to a holding company through company split
with July 1, 2014 as the target date.
Purposes of shifting to aholding company system
Transferring authority to each business and clarifying theallocation of responsibilities.
Establishing a system that allows agile and flexible
decision making for the launch of new businesses andM&A, etc.

Adopting a holding company
system is essential

Accelerating the Group’s sustainable growth bymaintaining and advancing the strong governance system.

Future schedule
February 17, 2014
Board of Directors for resolutionof absorption split

March 20, 2014 (planned)
General Meeting of Shareholders
for resolution of absorption split

How to shift to a holding
company system

The Company plans to succeed business to a wholly-owned subsidiary through anabsorption-type company split (the “Company Split”) with the Company as a splitting
company.
After the Company Split, the Company plans to change its trade name and maintain thelisting of its stock.

July 1, 2014 (planned)
Shifting to a holding company
systemCopyright © WORLD INTEC CO.,LTD. All Rights Reserved

41

Targets to Be Achieved

1

Establishing management and organizational frameworks that allow eachbusiness segment to operate independently Separating formulation of management strategy and execution of operations to establish an organizationalframework for managing the entire Group.
 Transferring authority to each business and clarifying the allocation of responsibilities.
 Speeding up the management by simplifying the decision-making process and promoting streamlining.
 Increasing independence and competitiveness by stepping up collaboration within each business segment
and placing each business segment on an equal footing.

2

Actively investing in new growth fields
 Actively allocating management resources in business fields with growth potential.
 Actively utilizing M&A to launch new businesses agilely and expanding the scale and scope of businesses.

3

Further enhancing corporate value
 Enhancing corporate value by boosting shareholder returns based on sustainable growth of the Group.

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

42

The Group’s Organizational Structure after Adopting the Holding
Company System(tentative name) World Holdings(Condominium business / selling agency in the Tohoku area)

World iCity Co., Ltd.
(Selling agency / contract selling business)

World Resiselling Co., Ltd.

）(Contract selling business / real estate loan consulting business)

Nichimo Real Estate Co, Ltd.
(Condominium business / selling agency in the Kinki area)

Wisteria Homes Co., Ltd.
(Condominium business / condominium managementbusiness in the Tokyo metropolitan area)

World Residential Co., Ltd.
(Selling office automation equipment andcommunications equipment)

Best IT Business Co., Ltd.
(Selling communications equipment [Softbank
shop business / WILLCOM shop business])

Network Solution Co., Ltd.
(Selling communications equipment [au shop
business])

Mobile Service Co., Ltd.
(Call center business)

e-support, inc.
(Administrative contract business / contract
work / worker dispatching services)WORLD INTEC FUKUSHIMA CO.,LTD

(Total worker dispatching services)(Newly established) WORLD INTEC
Co., Ltd.
(Entrusted system development business, etc.)

GEOGRAPHIC INFORMATION OF
KYUSHU, INC.
(Personal computer school operation, etc.)

Advan Co., Ltd.
(Clinical Research Outsourcing business (CRO ))DOT International Co., Ltd.
(Staff placement and worker dispatching services
overseas for the manufacturing sector)

WORLD INTEC TAIWAN CO., LTD.

43
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

Real
不動産ビジネスestate businessInformation 情報通信ビジネス& telecommunication business
Human resources
人材・教育ビジネス
education business

52%
97%
97%
100%

100%
100%
100%
100%
100%
4%
3%
3%
51%
100%
100%
100%
100%
100%

Shareholder Returns
Maintaining dividend increase in line with profit growth(yen)Dividend per share

14.3

15.0

10.0

10.0

8.5

5.0

4.3

4.5

4.5

FY2009FY2010FY2011

0.0
FY2012FY2013Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

FY2014 (forecast)

44

APPENDIX

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved45World Intec Corporate Profile
CompanyWORLD INTEC CO., LTD.

Head Office

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

EstablishedFebruary 12, 1993

CEO

Eikichi Iida

Main
Businesses

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

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

Workforce

9,373 (consolidated/ as of December 31, 2013)

Locations

63 (consolidated/ as of December 31, 2013)

Listed Date

February 9, 2005 (JASDAQ Stock Exchange / Stock Code 2429)
Link to the Official Facebook Page

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

46

Human Resources and Education Business: Reference Data
Trends in sales of factory business by region and industry sector
Factory business[Percentage of sales by region]
KyushuChugoku[Number of staff]
Kansai

Tokai

Kanto

TohokuJapan

TaiwanTotal

FY2013

32.6

31.3

7.2

3.6

17.2

8.1

2013/4Q

5,424

236

5,660

FY2012

40.5

28.8

7.0

3.3

13.5

6.9

FY2012

6,089

339

6,428

FY2011

44.9

24.9

7.2

5.5

14.0

3.5

FY2011

4,846

529

5,375

*Number of staff until FY2012/1Q includes that in WORLD INTEC FUKUSHIMA but not thereafter.

[Percentage of sales by business category]
Semiconductor

Electrical &electronics

Machinery

ChemicalAutomobile

Environmental
energyLogistics

Food/
consumables

Precisionequipment

Pharmaceuticals

Others

FY2013

23.7

21.6

8.2

3.3

10.2

5.3

10.8

3.9

1.9

0.0

11.0

FY2012

25.0

18.8

8.2

3.3

11.5

4.6

6.7

3.2

6.3

0.2

12.2

FY2011

33.9

13.8

10.5

6.1

8.5

6.3

2.8

2.8

2.4

0.4

12.5

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

47

Human Resources and Education Business: Reference Data
Trends in sales of technology business by region and industry sector
Technology business[Percentage of sales by region][Number of staff]

KyushuChugoku

26.2
27.9

10.0
3.7

3.1
1.9

20.0
16.2

4.5
5.9

FY2013

FY201236.3
44.3

FY2012

1,263
1,380

FY2011

47.2

31.4

3.2

1.8

12.4

4.1

FY2011

1,374

Machinery

Logistics

Precision Environmental
energyequipment

Pharmaceuticals

Chemical

FY2013Kansai

Tokai

Kanto

TohokuJapan[Percentage of sales by business category]SemiElectric &Automobile
conductor
electronics

Food/
Information &consumables telecommunications

Others

FY2012

51.0
58.9

7.1
6.2

4.7
5.3

1.3
1.4

0.1
0.0

1.3
1.4

4.8
4.1

0.1
0.3

0.4
0.5

0.2
0.1

18.5
14.8

4.8
5.2

FY2011

65.2

3.9

5.3

1.0

0.0

1.1

3.3

0.1

0.6

0.0

11.0

6.8

FY2013Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

48

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

TEL

03-3516-1122

E-MAILirinfo@witc.co.jp

URL

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

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

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

49