Business Results for Fiscal Year 2007
ended December 31, 2007
February 19, 2008
WORLD INTEC CO., LTD.

ＪＡＳＤＡＱ（２４２９）

目次
1. Business Results Summary of Fiscal Year 2007
ended December 31, 2007
2. Business Forecast for Fiscal Year 2008 ending December 31, 2008
3. Operating Environment and Business Outlook

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

2

Business Results Summary of Fiscal Year 2007
ended December 31, 2007

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved3Consolidated Business Results Summary of FY12/07(Versus Revised Forecast / Year-on-Year)Net Sales

Increased 33.4% YoY / 15th consecutive fiscal year of growth

Operating
IncomeIncreased 37.5% YoY

Ordinary
IncomeIncreased 51.2% YoY / 5th consecutive fiscal year of growth

Consolidated statements ofincome summary(Millions of yen)

Net sales
Opearating income
Operating income margin

Ordinary income
Ordinary income margin

Net income
Net income margin

FY12/06

FY12/07

FY12/07

vs Revised Forecast

ActualRevised Forecast

ActualValue

34,850
97847,082
1,379

46,497
1,345

2.8%

2.9%

2.9%

1,172

1,716

1,772

3.4%

3.6%

3.8%

418

798

741

1.2%

1.7%

1.6%

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

Ratio

(584)
(33)

-1.2%

Year-on-Year
Value

Ratio
33.4%

-2.5%

11,646
366

56

3.3%

600

51.2%

(56)

-7.0%

323

77.1%

37.5%

4

Consolidated Net Sales and Operating Income Margin(FY12/05 - FY12/07)▌ A significant decline in cost of sales in FY07/4Q keys major improvementin operating income margin（Millions of yen）

14,00012,835Net Sales
Operating Income Margin

12,0009,950

10,00011,41311,726
10,523

20.0%

15.0%

8,526 8,673
7,700

8,000
5,969
6,000

4,905 5,151

4,000
2,000

25.0%

6,635
8.6%

10.0%

5.4%

1.0%

2.4%

2.2%

5.0%

3.6%

3.8%

3.3%

2.9%

2.2%

2.1%
0.0%

-0.1%

0

-5.0%
Q1

Q2

Q3

FY12/05

Q4

Q1

Q2

Q3

Q4

FY06/12

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

Q1

Q2

Q3

Q4

FY12/075

Business Results Summary for FY12/07 by Business Segment(Versus Revised Forecast / Year-on-Year)By business segment(Millions of yen)
Manufacturing Temporary Net Sales
Placement/Contracting
Operating income
Operating income margin

Technology Oriented
Placement

Net Sales
Operating income

R&D Placement

Net Sales
Operating income

Operating income margin

FY12/06
ActualFY12/07
Revised Forecast

FY12/07
Actual24,2481,525

31,048
1,911

29,974
1,959

6.3%

6.2%

6.5%

4,074
228

7,000
424

7,069
402

5.6%

6.1%

5.7%

1,227
123

1,600
152

1,576
167

Operating income margin

10.0%

9.5%

10.6%

Information Technology & Net Sales
Telecommunications
Operating income
Services
Operating income margin
Marketing Sales Services Net Sales
Operating income

4,544
124

6,069
(15)

6,852
(90)

2.7%

-0.2%

-1.3%

754
(106)

1,365
(83)

1,024
(150)

Operating income margin-14.1%-6.1%-14.7%

Total

vs Revised Forcast
Value
Ratio

(1,073)
569

-3.5%
-

5,725
447

23.6%
367.3%

69
(21)

1.0%
-5.2%

2,994
173

73.5%
76.0%

(23)
15

-1.5%
10.4%

348
44

28.4%
36.1%

783
(75)

12.9%
-

2,308
(215)

50.8%
-

(340)
(67)

-25.0%
-

269
(44)

35.7%
-

-1.2%
-2.5%

11,646

33.4%
37.5%

Net Sales

34,85047,082

46,497(584)

Elimination(917)(1,010)(942)

68Operating income

978

1,379

1,345

(33)

2.8%

2.9%

2.9%

Operating income margin

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

Year-on-Year Change
Value
Ratio

(25)

366

6

Summary of Consolidated Balance Sheets
Consolidated balance sheets(Millions of yen)

FY12/06

FY12/07yoy chg

ActualActual

Value

2,385

Total assets

9,637

12,022Current assets
Cash and cash equivalents
Notes and accounts receivable
Inventories
Other
Fixed assets
Property and equipment
Intangible fixed assets
Investments and other assets

8,228
3,610
4,166
112
339
1,409
282
348
778

10,214
4,194
5,149
309
560
1,808
569
336
902

1,986
584
983
197
220
399
286 ← Increase due to acquisition of property and otherassets to expand outlet network of Information(12)
Technology & Telecommunications Services
124

Total liabilities

5,837

7,528

1,690

Current liabilities
Notes and accounts payable
Short-term borrowings
Accrued expenses
Income taxes payable
Consumption taxes payable
Other
Long-term liabilities
Long-term debt
Reserve for retirement benefits
Other

5,740
219
820
3,406
316
521
456
97
0
81
15

6,904
503
609
3,502
726
668
894
623
495
110
17

1,164
284 ← Increase in payables due to outlet network expansion of(210)
Information Technology & Telecommunications Services
96
409
146
437
526
495 ← Transferred from short-term borrowings to long-term debt
29
2

Total net assets

3,800

4,494

694

696
859
1,854
387

696
859
2,520
489

0
0
666
101

9,637

12,022

2,385

Common stock
Capital surplus
Retained earnings
Minority interests

Total liabilities and net assets

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

7Summary of Consolidated Statements of Cash Flows
Consolidated statements of cash flows

FY12/06

FY12/07yoy chg

ActualActualValue(Millions of yen)

Net cash provided by operating activities
Income before income taxes and others
Depreciation
Decrease in notes and accounts receivable
Decrease in inventories
Increase/decrease in purchase liabilities
Increase/decrease in accrued expenses
Increase/decrease in consumption taxes payable
Bonus payment to directors
Other
Income taxes paid
Net cash used in investing activities
Bank placement for time deposits
Expenditure for purchase of property, plant and equipment
Expenditure for purchase of investment securities
Net increase/decrease in deposits and guarantee
Other
Net cash provided by financing activities
Net increase/decrease in short-term borrowings
Increase in long-term debt
Repayment of long-term debt
Other
Effect of exchange rate changes on cash and cash equivalents
Increase/decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents due to exclusionfrom consolidation
Cash and cash equivalents at end of year

988

1,081

92

1,133
69
(1,215)
(48)
(46)
972
203
(12)
584
(664)

1,762
134
(987)
(197)
284
101
141
0
378
(536)

629
64
228
(148)
330
(871)
(62)
12
(205)
127

(202)

(576)

(374)

(3)
(204)
(110)
91
23

(42)
(435)
－
(56)
(42)

(39)
(231) ← Increase due to outlet network expansion of Information
Technology & Telecommunications Services
110
(148)
(66)

(312)

142

455

(310)
－
(12)
9
1
475
3,092

(720)
1,300
(294)
(142)
(4)
642
3,568

(410) ← Transfer from short-term borrowings to long-term debt
due to interest-rate movement considerations
1,300
(282)
(151)
(6)
167
475

－

(57)

(57)

3,568

4,152

584

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

8

Business Forecast for FY 2008
ending December 31, 2008

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

9Consolidated Business Forecast Outline for FY12/08▌ Since 2007, due to a series of incidences—including noncompliance violations of

the Worker Dispatch Law—that we were unable to project or foresee, the impact
on our business results is expected to be significant. We intend to further reinforce
our previously instituted regulatory compliance policy, while concurrently selectand focus on strategic business lines.
Consolidated statements of income
summary(Millions of yen)
Net sales
Opearating income
Operating income margin
Ordinary income
Ordinary income margin
Net income
Net income margin

FY12/07

FY12/08

Actual
46,4971,345

Forecast
51,075
2,075

Value
4,578
730

Ratio
9.8%
54.3%

2.9%
1,772

4.1%
2,222

450

25.4%

3.8%
741

4.4%
1,083

341

46.0%

1.6%

2.1%

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

vs FY12/07

10

Business Forecast Outline for FY 12/08 by Business Segment
By business segment(Millions of yen)
Manufacturing Temporary Net Sales
Placement/Contracting
Operating income

FY12/07
ActualFY12/08
Forecast

29,974
1,959

32,761
2,534

6.5%

7.7%

7,069
402

8,048
478

5.7%

5.9%

1,576
167

2,100
171

Operating income margin

10.6%

8.2%

Information Technology & Net Sales
Telecommunications
Operating income
Services
Operating income margin

6,852
(90)

7,018
146

-1.3%

2.1%

Marketing Sales Services

1,024
(150)

1,147
34

-14.7%

3.0%

Net Sales

46,497

Elimination

Operating income margin

Technology Oriented
Placement

Net Sales
Operating income
Operating income margin

R&D Placement

Net Sales
Operating income

Net Sales
Operating income
Operating income margin

Total

Operating income
Operating income margin

Year-on-Year Change
Value
Ratio

2,787
574

9.3%
29.3%

978
76

13.8%

523
4

33.2%

165
237

2.4%

19.0%

2.4%

-

123
184

12.0%

51,075

4,578

9.8%

(942)

(1,289)

387

41.0%

1,345

2,075

730

54.3%

2.9%

4.1%

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

11

Operating Environment and Business Outlook

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

12Industry Sub-Segments
White-Collar
Placement of Engineers

Temporary Staffing

・MEITEC CORPORATION

・Staff Service Holdings

・Altech Corporation

・Tempstaff Co., Ltd.

・JAPAN TECSEED CO., LTD.

・Pasona Group Inc.

・Pasona Tech, Inc.

・Adecco Ltd.
・ CB Business Division
・ WITH COMMUNICATION CO.,LTD.

・ R&D Placement
・ Technology Oriented Placement

Short-Term

Long-Term
Light Duty / Short-Term
Placement
・The Goodwill Group, Inc.

・Fullcast Co., Ltd.

Manufacturing Temp
Placement/Contracting
・WORLD INTEC CO., LTD.
・Out-Sourcing Inc.

・United Technology Holdings Co., Ltd.
・NIKKEN SOGYO CO., LTD.
・NISSO CORPORATION

Blue-Collar
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

・ Manufacturing Temporary
Placement/Contracting
・ WORLD INTEC TAIWAN CO., LTD.
・ WORLD EXPERTS CO., LTD.
Source: WORLD INTEC CO., LTD.

13

Recent Developments in the Placement Service Industry
and Their Impact
2007
Falsified contracting allegations surface

Industry Issues

Regulatory
Issues

2006

2008

2009

2010

● March Placement contract term extended from 1 year to 3 years● June New regulatory guidelines issued on “legally
appropriate” contracting
Company A ordered to suspend
business● March  Company B ordered to rectify
placement business practices● Aug.  Company B ordered tosuspend corporate
operations, rectify
Falsifiedbusiness practices● Jan.



contracting
allegations
corroborated

Possible complications
resulting fromthe 2009 Issue*● Jan.  Company A ordered to suspend

corporate operations
Company C ordered to rectify
operations

We are working with client manufacturers by conducting joint study sessions toenhance understanding of the latest government guidelines, and are reviewing ourcontractual relationship with those clients that find it difficult to comply with regulations.
We project the manufacturing outsourcing industry will undergo a major reorganizationin the near future as clients opt to employ workers directly and become more stringent
when selecting an outsourcing company.

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved* Under the revisions
enacted to the Worker
Dispatch Law in 2007, allthree-year contracts must
undergo a “cooling-off”
period of 3 months
before the contracted
worker can resume
his/her work with thesame clientmanufacturer. Thisclause could possibly
instigate a mass
discontinuation ofoutsourced workers in
2009.

14

Changes in Business Environment and Key Issues
Business
Environment

Mid- and Long-Term Structural Issues
 Declining birthrate and rapidly aging
population
 Contracting skilled worker pool
 Legal reforms reshaping industry andpractices Falsified contracting incidents, etc.

Emerging Issues Post-2007
 Loss of social confidence due toregulators’ frequent disciplinary
action Facilitates new strategies andresponses by client manufacturers

Ongoing Initiatives
Reinforcing compliance
Developing “cast” members*

Improving retention ratio
Developing managers* Our employees are not simple temp-staff workers, but rather
members of a professional “cast” with specific and vital roles
to perform

Initiatives Responding to Changes in Business Environment“Compliance as Power” + “Power to Add Greater Value”+ “Power to Focus Locally”
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

15

“Compliance as Power”
Business
Environment
Industry-wide restructuring
Client-manufacturers more discerning ofoutsourcing firms
 Client-manufacturers driving market
contraction through direct employment,
other moves


Polarization of compliance awarenessamong client-manufacturers

Our Core Initiatives
 Reinforce compliance in the business transaction process through UKE-OI(manufacturing contracting) statements and develop “work-to-rule” transaction
framework for each client-manufacturer
 Make adjustments through surveys of individual client-manufacturer to better
meet their needs
 Auditing Office conducts audits on a quarterly basis and provides appropriate
counsel Review business relationship with client-manufacturers with substandard
understanding of regulatory compliance

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

16

“Power to Add Greater Value”
Initiatives to Enhance
Service ValueDevelop drive of “cast” members who, in turn, operate in contracting sites with high degree ofon-site expertise and professionalism



Facilitate transition from “work-to-rule” contracting sites to contracting sites to generate profit
within “appropriate” levels

Create a corporate culture that reinforces employee identification and improves the retention
ratio of quality “cast” members

Human Resource Development
Initiatives

For “Casts”

For “Managers”

 Publish special in-house newsletter for “cast” members

 Provide Registered Safe Technician (RST) training Support group activities

 Establish Statement of Manufacturing Contracting Provide English conversation classes

and in-house certification system Adopted management promotion system to support careeradvancement of researchers and engineers
 Hold engineering conferences, seminars

 Offer skill-set development programs at in-house training facility

 Conduct follow-up seminars by visiting lecturers,

experts
 Adopted leadership training program to develop next
generation of director-class managers

 “UKE-OI (Manufacturing Contracting) Meister” System:

Additional Initiatives

Program for trainers to develop quality “cast” members thatcan operate contracting sites
 UKE-OI Facilitator Development: Training for quality “cast”
members that operate contracting sites
 Incentives to create a corporate culture that enhances
employee identification and retention

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

17

“Power to Focus Locally”

Initiatives for Regions
With High Business Compatibility
 Collaborative venture with Nishinippon

Institute of Technology
 Comprehensive human resource

development alliance aiming to train highly
skilled, technical workers

Kyushu as Overseas Springboard
 Gateway to China and other Asia countries Launched WORLD INTECH TAIWAN CO.,

Industry-government-academia
alliance in Kyushu area
 Collaborative ventures with national

ministries, local government agencies

LTD., the fastest growing outsourcing
placement company in Taiwan in a rapidly
developing market
 Entered into a business tie-up with a directly
managed company of the Chinese
government located in Yāntái City
 Launched recruitment center in South Korea
 Ramped up overseas trainee program

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved18Newly Launched Projects with Government in Kyushu Area
Ministry of Health, Labor and Welfare(Fukuoka Labor Bureau)
Certification of UKE-OI Statement
 Discussion and promotion of placement, recruiting and contracting businesscompliance issues
 Active engagement in “UI-Turn” initiative* of Fukuoka prefectural governmentMinistry of Education, Culture, Sports, Science andTechnology (Kyushu Economic Research Center)* The initiative seeks tolure skilled workers inother areas,
particularly thoseworking in Japan’slarge metropolitan
centers, to Fukuoka

Poster for “UI-Turn” Fair*

Cooperate and coordinate with Kyushu-based economic research effort

Ministry of Economy, Trade and Industry(Kyushu Bureau of Economy, Trade and Industry)
Participated in development of new economic rejuvenation initiative for Kyushu
 Active participant in university-sponsored business conferences

Ministry of Economy, Trade and Industry(Kyushu Semiconductor Industries & Technology
Innovation Association)
Developed and launched semiconductor fabrication internship program, or“IKKAN”
 Provides human resources support to Kyushu Semiconductor Industries &Technology Innovation Association member-firms to meet their semiconductor
fabrication needs


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

Poster for “IKKAN”
initiative**** This internship initiative targets firstand second-year university students
majoring in science and technology

19Collaborative Ventures with Local Government and Universities
in Kyushu Area
Fukuoka Prefecture

Engaged in automobile industry-oriented human resources development
and employment support programs

Engaged in human resources development program for Fukuoka Instituteof System LSI Design Industry

Kitakyushu City

Joint project for attracting companies to the region, development of strategic employment forindustries, development of executives in Asian countries

Kitakyushu Foundation for the Advancement of Industry Science and Technology
Project for developing human resources for advanced semiconductor technology

Project for developing human resources for semiconductor industry

Kitakyushu Foundation for the Advancement of Industry Science and Technology
Car Electronics CenterProject coordinating researches in car electronics technology field among universities and privatecompanies

Coordination project among government, industry and academia for human resources
development of car electronics technology field

Universities
Nishinippon Institute of Technology
 Developing human resources for automobile manufacturing sites (Establishedjointly with Human Resource Development Center for Advanced Industries)
Faculty of Engineering, Kyushu University
 Developing human resources for semiconductor industry

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

20Future Outlook(Millions of yen)

70,00010.0%
9.0%

60,0008.0%
50,000

7.0%

6.0%

40,0005.0%
30,0004.0%

3.0%

20,0002.0%
10,000
1.0%
0

0.0%
2006

2007

2008

Net Sales (Actual)
Estimates Based on Mid-term Business Plan Announced in May 2007

Estimates Made at FY12/08 Business Results Announcement
Operating Income Margin

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

21

Business AllianceJAPAN TECSEED CO., LTD.
R&D Outsourcing

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

22

Contact Information
WORLD INTEC CO., LTD.
Hiroshi Kudo (Mr.)
Corporate Spokesperson
Corporate Management OfficeTEL813-3516-1122

E-MAILirinfo＠witc.co.jp

URL

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

A cautionary note on forward-looking statements:
This material contains forward-looking statements on the Company and its future businessperformance. The forecasts are developed from a broad base of information collected andcollated by the Company as of the day the business results are announced. Actual results,
however, may differ materially from those projected. Neither the Company nor provider ofthe information contained herein may be held liable or responsible for any loss or damages
resulting from investment decisions based on the content of this presentation.

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