FY2018 Financial Results

February 18, 2019 (Mon)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange(2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Contents
I. Summary of FY2018 Financial Results

・Overview of Business Results by Segment (Results Compared to the Results in the Previous Term)

… P3
… P4
… P5

・Details of Each Segment
・Financial Condition B/S・Cash Flows

… P6
… P15
… P16

・Review of FY2018
・Summary of Financial Results

Ⅱ. Progress of New Mid-term Managerial Plan and Business Forecasts
・Overview of New Mid-term Managerial Plan 2021
・Initial Estimate vs. Changes in Actual Business Performance (for Last 5 Years)
・Changes in Actual Business Performance by Segment (for Last 5 Years)
・FY2019 Business Forecast
・FY2019 Factors for increasing or decreasing operating income
・Business Forecast by Segment
・Shareholder Returns

… P18
… P19
… P20
… P21
… P22
… P23
… P24

Ⅲ. 2019 Measures
・ Future Strategy for Each Segment… P26

・ Topics… P32
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

1

I. Summary of FY2018 Financial Results

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

2

Review of FY2018

Human
ResourcesandEducation
Business

Initial Plan for FY2018

Actual Results for the Year

Implementation of mid- and long-term measures towarddistinct differentiation, such as improvement of “capabilityof gathering workers”

Realization of a certain extent of effects through theestablishment/strengthening of a human resource
development system (retention rate improvement, risingcompetitiveness in the distribution field, and increasing
number of workers assigned for the technology business)・Strengthening of upfront investment that contributes to securing humanresources in the future＝Improvement of “capability of gathering workers” (brand strength)(Establishment/enhancement of the system of human resource development ineach business segment)(Establishment of a new evaluation system that facilitates job mobility of thehuman resources we have developed)・Strengthening of “capability of attracting workers”

Acceleration of shift to a profit structure depending less onmarket conditions

Information
andTelecommuni
cations
Business

Closely related

Real EstateBusiness・Balancing out and strengthening of the business portfolio
・Start business in new regions
・Establishment of a system for sharing and utilizing informationcollected through our nationwide business network○：Enriched education/training programs in each business○：Started reviewing the evaluation system for each business△：Investment was not sufficient in some cases△：Opportunity loss occurred due to ongoing difficulty in recruitment activity△：Cost of structural reform through R&D and S&M increased

Recurring-revenue businesses grew○： Renovation-related business, in which weight was attached to expansion, grew○：Increased the number of business bases for single-family housing and renovation○：Delivered houses in a timely appropriate manner for real estate development-related
segment => Maximized profit△：Careful procurement through meticulous assessment of the market conditions => will have
impact on business performance in the next and subsequent terms

Establishment of systems capable of dealing with changes
in market needs

While progress was made with system establishment,
business environment continues to be severe・Upfront investment in building up a networkof blue-chip stores・Strengthening of businesses targeting
corporations○：Solution targeting small- and medium-sized companies grew steadily△：Implemented scrap and build, and will continue it for the next term

Benefit of theremaining players

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved3Summary of Financial Results⚫ Human Resources and Education Business, our mainstay segment, continued to show steady growth, leading ourcompany’s whole business performance.

⚫ Sales hit a record high thanks to the growth of the existing businesses.
⚫ We achieved the initial estimate for operating income while accelerating investment in Human Resources and Education
Business as planned with the future kept in mind.
(Unit: Million yen)
Results forthe term
ended Dec.
2017

*Initial
estimate

127,147

145,137

142,894

Operating income

7,064

7,288

7,370

101.1%+305+4.3 %

Ordinary income

7,007

7,083

7,357

103.9%+349+5.0 %Net income attributable toowners of parent

4,612

4,635

4,650

100.3%+38+0.8 %Net sales

Results forthe term
ended Dec.
2018

Result against
estimate
Achievement
rate

YoY
ChangePct.
Change98.5% +15,747 +12.4 %*Announced on February 13, 2018
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

4Overview of Business Results by Segment (Results Compared to the Previous Term)

Results forthe term
ended Dec.
2017

Unit: Million yen

Factory BusinessTechnology Business

Human Resources
and Education
Business

Net sales

41,654
2,587
12,155
1,263
6,489
634
5,741
219
66,041
4,704
49,080
4,635
9,167
25
2,856
-272
127,147

Elimination or
corporate-2,029Operating income

7,064

Net sales

34,3894,164
14,690471

Net sales
Segment income
Net sales
Segment income

R&D BusinessNet sales
Segment income

Sales & Marketing
Business
Total (reference)

Net sales
Segment income
Net sales
Segment income

Real EstateBusiness

Real Estate BusinessInf ormation andTelecommunications
Business

Information andTelecommunications
Business

Other

Others

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

Total(Profit margin)(6.2%)(10.4%)(9.8%)(3.8%)(7.1%)(9.4%)(0.3%)－

Results forthe term
ended Dec.
2018

49,524
3,169
15,200
1,337
6,779
559
3,533
-100
75,0384,964
52,011
4,589
12,376
3
3,467-270
142,894

YOY(Profit margin)

Change(6.4%)(8.8%)(8.3%)－(6.6%)(8.8%)(0.0%)－-1,917(5.6%)

7,370(5.2%)

Pct. Change

7,869
581
3,044
74
289
-75
-2,207
-320
8,996
259
2,931
-45
3,209
-21
610
1
15,747

18.9
22.5
25.0
5.9
4.5
-11.9
-38.4
－
13.6
5.5
6.0
-1.0
35.0
-85.1
21.4
－
12.4

111

－

305

4.3

-190
-513
3,122
467

-0.6
-12.3
21.3
99.2

<Reference>
Real EstateBusiness

Development/Single-family
housingRenovation/PrefabricatedhousesSegment income
Net sales
Segment income(12.1%)(3.2%)

34,1993,651
17,812938

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved(10.7%)(5.3%)

5

Human Resources and Education BusinessOverall Segment<Composition Ratio of Sales and Segment Income by Segment>⚫

⚫

Response to the changing external environment⇒Implemented measured upfront investment from the medium- and long-term perspective in order to raise the brandstrength (capability of gathering workers)
Endeavor to enhance the human resources development/assignment functions and saw results in some of the efforts⇒Steady growth in Factory Business (distribution field) and Technology Business◆ Sales composition◆ Segment income
Up 13.6%(Million yen)

80,00070,00060,00050,00075,03872,57366,041

7.4%

8.7%

10.2%

Up 3.4%

4.7%
9.0%
20.3%

9.8%

18.4%

YoY
(Based on
monetary
amount)-38.4％+4.5％+25.0％

18.4%(Million yen)

Up 5.5%

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

Increasing cost of growth investment in Factory Business, andinvestment in structural reform for R&D and Sales & Marketing

5,329
1.5%
13.0%

4,704
4.7%
13.5%

Down 6.8%

4,964
11.3%

24.2%

26.9%

26.8%

40,0002,000
30,00020,000

66.0%

64.0%

63.1%

+18.9％

1,000

63.8%

61.3%

55.0%

0

10,0000
2017/12actualFactory-1,0002018/12estimate
Technology

R&D

actualSales & Marketing-2.0%

2017/12actualFactory

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2018/12estimate

Technology

R&D

actualSales & Marketing6

Human Resources and Education BusinessOverall Segment<Factors in Changes of Segment Income>⚫
⚫

Immediate sales and profit continued to grow thanks to the net increase in the number of workers and the rising unit
price.
Meanwhile, we proactively made upfront investment in human resources development in an effort to gain a new positionin the field as a group of highly advanced engineers.
⇒Aiming to broaden the client base, further grow our company, and lay the groundwork for new
businesses for the future(Million yen)

105
-700
855

4,964
4,704

2017/12ActualIncrease in Rise in unit priceworking staff

Variousinvestments

2018/12Actual○Factory Business
Development and assignment of human resources with job
mobility through utilization of “Technical Center,” and “priorrecruitment”
Upfront investment following the “establishment of a newlogistics base”○Technology Business
Turning out fully developed human resources through in-house
education and training programs, such as ones at “Production
Engineering Center” and “Design Center,” and “various training
programs for system engineers”○ R&D Business
Enrichment of “education and training programs,” anddevelopment of “joint research with universities”
Securing loyalty of human resources and developing them by DOT○Establishment and operation of programs/systems for helping
employees curve out their respective careers○Provision of a 10-year follow-up training program for newly
employed workers

Formation of highly capable engineer team
(Development of more advanced business fields+ promotion of our company)

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7

Human Resources and Education BusinessOverall Segment<The number of staff members>⚫ In the distribution field (Factory Business), we successfully dealt with large-scale projects during thebusiest period at the end of the year thanks to the effective stratified education program focusing mainlyon educating the management.
⚫ In Technology Business, we increased the number of working staff by enriching the scheme that we hadpropelled forward with the aim of developing and assigning engineers.
◆ Variation in the number of staff (3-month average)*（Persons）

Record high25,00020,00015,00017,255
2,861
912
1,903

18,295
2,502
995
2,037

19,29920,36019,11520,193

20,179

1,191
1,052
2,328

1,228
1,036
2,386

2,199
1,029
2,042

1,540
996
2,115

14,05815,09014,464

15,622

15,5292017/3Q

2017/122018/1Q

2018/2Q

2018/3Q

2,210
999
2,032

YoY

21,577
1,335
1,023
2,437

-864
-6
+395

16,782+1,692

10,0005,000

11,57912,761

2017/1Q

2017/2Q

0

Factory

Technology

R&D

2018/12

Sales & Marketing

The number of staff in Factory Business includes external staff members accepted from other companies.

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8Human Resources and Education Business

Factory Business＜Sales composition by business segment and the number of staff members＞⚫

We dealt with the strength and weakness at each of our business segments through job mobility of our human resources, and avertedrisks of sales decrease as much as possible.
The newly established large-scale business base in the distribution field started operation successfully in April, contributing to increasing
the number of working staff as well as nurturing the management.
We expanded the office for tasks we undertook in Machinery, and Electric & Electronics Businesses, and prospected for growth industries
such as 5G network.
We moved ahead with investment in order to build a human resources platform (a group of experts with shared techniques and skills).

⚫
⚫
⚫

◆ Sales composition by business segment(Million yen)

Up 18.9%

50,00045,00040,00035,00018.2%

25,00014.4%

15,000Up 6.7%41,65430,00020,00049,524
46,435

3.6%
8.5%◆ Segment income
YoY(Based on
monetary
amount)

16.7%

+9.1％

2.8%
8.6%

-8.9％
+20.2％

13.0%

+7.5％

3.1%

-11.1％

4.2%
35.8%+33.3％(Million yen)

◆ Variation in the number of staff (3-month average)*Parentheses signify theUp 22.5%

3,500（Persons）number of new employees.

3,265
Down
2.9%

3,000

3,169

2,587

16,00012,0002,000

10,000

5,463
5,072
1,383
1,401

8,000

1,500
1,000

4,000
20.0%

19.1%

+24.7％

0Electric & Electronics
Semiconductors
Others

16,782
[239]

6,000

32.0%

2017/12actual

15,090[135]

14,0002,500

10,0005,000

18,000500

Logistics
Machinery0
2017/12actualactual

9,936

2,000

0
2018/12estimate

8,617

2018/12estimate
actualAutomobiles
Environment & Energy*We have not disclosed the sales estimate by segment

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2017/122018/12

Other companies/acceptance
Entrusted by overseas and government office
Number of staff*The number of staff is a three-month average. External staff members acceptedfrom other companies are included.
*Number of staff included only staff members who are engaged in on-site
operation work.

9

Human Resources and Education BusinessTechnology Business＜Sales composition by business segment and the number of staff members＞⚫

We increased the number of staff, including machine designers for the car-related field and system engineers for the 5G networkrelated field, by enriching the human resources development scheme* that is aimed at development and assignment of engineers.
*A scheme for nurturing and turning out human resources with the following as its major content:
・Existing employees－ Education for changing their career paths, and honing of their skills
・Inexperienced workers － Various training programs, such as training in 3D-CAD at “Design Center,” training in production engineering at“Production Engineering Center,” and programming training in collaboration with Advan Inc., in JAVA, Python, and embedded C.

◆ Sales composition by business segment◆ Segment income

Up 25.0%(Million yen)

16,00015,20014,00012,155

13,338

34.0%

8,000

6.1%
6.1%

6,000

16.0%

1,400

Up 14.0%

12,00010,000

YoY(Based on (Million yen)monetary
1,600
amount)

29.9%

+3.3％

6.9%
5.4%

+33.5％
+2.6％

15.2%

+11.3％◆ Variation in the number of staff (3-month average)（Persons）*Parentheses signify the number

2,500

Up 5.9%
1,263

1,291

1,000

1,500

800
1,000

2017/12actual500

200

0estimate

2017/12actualactualSemiconductors

Information and telecommunications service

Machinery

Automobiles

679

739

2017/122018/1200
2018/12

1,331
1,052

+32.3％

37.8%

2,000

367

311

400
42.6%

2,437
[114]

2,000

1,200

600

4,000

2,042
[107]

1,337

Up 3.6%of new employees.

2018/12estimate
actualOthers*We have not disclosed the sales estimate by segment

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Construction, repair and other technology
Design development
Production technology*The number of staff is a three-month average*Number of staff included only staff members whoare engaged in on-site operation work.

10Human Resources and Education Business

R&D Business＜Sales composition by business segment and the number of staff members＞⚫

Sales grew steadily in the Researcher Dispatch segment. We successfully promoted our company by securing superior researchersand enriching education and training programs, and enriched the system of joint research with universities by researchers who
possess highly professional knowledge and skills.
In the clinical research outsourcing (CRO) segment, profit shrank due to the failure to receive an order for a large-scale project
outsourced to DOT World Co., Ltd. We entered into an advisory contract with Prof. Akifumi Matsuyama of Fujita Health University,and embarked on structural reform with the next and subsequent fiscal years kept in mind.

⚫

◆ Sales composition by business segment(Million yen)

8,000
7,000
6,000
5,000

◆ Segment income

We have carefully selected
employment due to entry into
high-level fields.

Up 4.5%

7,420
6,489

Down 8.6%

14.8%

YoY
(Based on
monetary
amount)

800
700

6,779
13.1%

-7.7％

600

7.5%

+1.2％

500

7.8％

Down 11.9%

DOT World Co., Ltd. invested in*Parentheses signify the number
structural reforms for growth. （Persons）

1,200

693 Down 19.3%
634
559

1,000

of new employees.

1,029
[83]

1,023
[78]

93

93

936

931

2017/122018/12

800

400

4,000

41.1%
43.2％

-0.7％

600

300

200

3,000

400

100

2,000
1,000

(Million yen)

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

38.3%

34.2％

+17.0％

Pharmaceutical/biotechnology

200

-100

0
2017/12actual00-200
2018/12estimate
ChemicalClinicalactualClinical（outsourced to
DOT）

The Researcher
Dispatch segment
expanded steadily.

2017/12actual2018/12estimate

Clinical（outsourced to
DOT）

actualOthers*We have not disclosed the sales estimate by segment.

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R&D staff

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

11Real Estate Business

Real Estate Business<Sales composition by business segment, and the number of pieces of real estate handed over ＞⚫

In the renovation-related segment, we accelerated business growth by improving our corporate brand value andprospecting for new business regions.
In the development-related segment, with weight attached to securing profit, we procured and delivered houses in atimely and appropriate manner by making the most of our capability of collecting information and vast network that havebeen realized through a wide range of fields and regions we have covered.

⚫

◆ Sales composition by business segment(Million yen)

60,000Up 6.0% 52,011
50,00040,00049,0804.8%
25.0％◆ Segment income

YoY(Based on
monetary
amount)3.6%-21.0％

30.7％

+8.2％

◆ Major condominium handed over

(Million yen)

6,000
5,000

4,635 Down 1.0% 4,589

4,000
3,974

30,000

17.1%

14.9%

3,000
Sales composition ratio
of items other thandevelopment increased.

20,00053.1%

Exceeded by
15.5%

-8.5％

50.9%

10,000Residential Ikoma≪Nara
Prefecture≫

Initialestimate

2,000+10.5％

1,000

0
2017/122018/120
2017/122018/12Prefabricated houses-related
Renovation-related
Single-family housing
Development-related

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

Residential
Musashigaoka≪KumamotoPrefecture≫

12

Information and Telecommunications BusinessInformation and Telecommunications Business＜Sales for each target and segment income＞⚫

Although the sales increased as sales volume expanded mainly in 16 stores which were added in previous year, newstores are increasing recurring revenue, moving into a phase of upfront investment.
We invested mainly in the shop business, which would become our mainstay, for having the merits of remaining players.
Corporate solutions business grew steadily thanks to expansion into new areas and increase of handling products.

⚫
⚫

◆ Sales for each target◆ Segment income
YoY(Based on
monetary
amount)(Million yen)

14,000Up 35.0%
12,376
11,54812,00010,000
8,000

9,167

(Million yen)

250

Comprehensive cost reduction
solutions for corporation

230

200
150

Corporate solutions
business grew steadily.

Segment
income

11.4%

100

6,000
4,000

+18.4％

Up 7.2% 10.1%◆ Corporate solutions

50

89.9%

+37.7％ 89.4%

88.6%

3

0

2,000

-50

0

-100
2017/12actual25

2018/12estimate

Mobile phone shop business

As for the mobile phone shop business, we
continued investment with the aim of building
up a network of blue-chip shops.

2017/12actualactualCorporate solutions business

Mobile phone shop business2018/12estimate

actual

LED lighting

Air conditioners forbusiness use

Smartphones

Multifunction machines

Computers

Internet lines

Telephone system forbusiness use

Monitoring cameras

UTM/servers

Power Producer and
Supplier

Water-saving packing

Water dispensers

Corporate solutions business*We have not disclosed the sales and segment income estimate by destination.

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13OtherOthers<Sales and major activities>⚫

Advan Inc. achieved sales and operating income that were greater than expected through the education businesstargeting our group companies and other corporations.
Despite unseasonable weather and disaster in the busiest period, Farm Co., Ltd., which engages in the agricultural parkbusiness, successfully increased the number of customers visiting its parks compared to the previous term thanks to therefurbishment of the facilities (such as “Sylvanian Park” in Comorebi Morino Ibaraido in Ibaraki Prefecture) and a myriadof other effective measures.

⚫

◆ Sales◆ Segment income

Up 21.4%(Million yen)

4,000

3,467

3,391
Up 2.2%

2,856
3,000

YoY
(Based on
monetary
amount)14.2%+83.6％

9.1%（Ten thousand）(Million yen)

0

96

-50

95

-100

94

-126

-150

2,000

94.8

93.4

93

+11.2％

76.0%

80.2%

◆ Number of visiting customers

-200

92

-250

91

1,000

0

2017/12actualAdvan Inc.

-300

2018/12estimate
Farm Co., Ltd.

-270

-272

+6.3％

9.7%

10.7%

90
2017/12actualactual2018/12estimate

2017/122018/12actualOther*We newly consolidated Farm Co., Ltd. from the second quarter of FY2017.
*We have not disclosed the breakdown of the sales and segment income estimate.

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14

Financial Condition B/S⚫ Assets and liabilities shrank owing mainly to the controlled procurement activities in Real EstateBusiness.
Total assets(Million yen)

Current assets

100,000
80,00080,03979,96470,31570,30960,00040,000

0

9,724

9,654

End of Dec. 2017

End of Dec. 2018

Fixed assets(Million yen)

60,000+1,048 million yen+868 million yen-3,560 million yen

9,654（-69）

・Total property, plant and equipment+732 million yen

・Goodwill-506 million yen

・Investment securities-378 million yen

Current assets

Total liabilities/net assets
Liabilities

100,000
80,000・Notes and accounts receivable-trade
・Real estate for sale・Real estate for sale in process
Fixed assets

20,00070,309 （-6）

80,03979,964

49,175

46,13011,724

11,485

19,14022,347

End of Dec. 2017

End of Dec. 201857,616（-3,283）

・Short-term debt
・Accounts payable-real estate・Income taxes payable
・Long-term debt

-4,772 million yen+630 million yen+368 million yen-453 million yen

40,00020,0000
Net assets

Fixed liabilities

Net assets

22,347（+3,207）

・Retained earnings+3,243 million yen

Current liabilities

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15

Cash Flows⚫ Operating CF was plus 9,277 million yen, investment CF was minus 1,405
million yen, and financial CF was minus 7,538 million yen.
(Million yen)

Operating CF Investment CF

Financial CF
Operating CF-1,405
9,277

・Current net profit before taxes and other adjustments
7,379 million yen
・Decrease in real estate for sale
3,064 million yen
・Increase in accounts receivable-929 million yen-7,538Term-startbalance of
cash andcash
equivalents

Term-endbalance of
cash andcash
equivalents

18,227

18,824

Investment CF

・Expenditure through the acquisition of property, plantand equipment-1,310 million yen

Financial CF・Net decrease in short-term debt
-6,674 million yen
・Proceeds from long-term borrowing
3,625 million yen
・Expenditure through the repayment of long-term debt
-2,775 million yen
・Payment of dividends-1,390 million yen＋597 million yen

End of Dec. 2017

Operating

Investment

Financial

End of Dec. 2018

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16

Ⅱ. Progress of New Mid-term Managerial Plan and Business Forecasts

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17Overview of New Mid-term Managerial Plan 2021
Expansion based on well-balanced business administration
・To evolve well-balanced business management mainly in the core businesses, and pursue optimal profit
performance・To enter the business fields peripheral to each segment, and provide new services
・To use M&A as one of the effective methods during the aforementioned process[First half of the mid-term managerial plan][Second half of the mid-term managerial plan]

Enhancement of brand strength, “capability of gathering workers”
Human Resources andEducation Business

M&A＋
Self growth

We take the lead in changing the concept of connecting people and companies.
⇒ Evolution of the human resources platform

Shift to profit structure less susceptible to the economic environment
Real Estate BusinessInformation andTelecommunications
Business

While holding fast to expansion of the development-related field at a properscale, we focus on the recurring-revenue businesses, including renovation.

Creation of new value through pursuit of services
We develop corporate solutions as a new business pillar in addition to the shop
business.

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18Initial Estimate vs. Changes in Actual Business Performance (for Last 5 Years)

Up until 2018, the progress has been generally in line with the new mid-term managerial plan
(focused on sales growth)
New Mid-term Managerial Plan

Former Mid-term Managerial Plan
(Million yen)

Net sales

Emphasis on sales growth

200,000

200,000（ Profit margin declined due to investment. ）Initial estimate

Actual145,137142,894

150,000

123,846 127,147

100,000

85,67787,984

100,111 94,334

70,62068,829

50,0002014/122015/122016/122017/12Results in 2016

Operatingincome(Million yen)

12,50010,0007,500

Initial estimate

Actual2018/12Aiming to double net sales

Net sales:
94.3 billion yen
Operating income:
7.4 billion yen

2021/12
Goals in 2021
Net sales: 200 billion yen
Operating income: 10 billion yen

10,000Emphasis on profit

7,407

7,064

7,2887,370

6,275

6,270

2016/122017/122018/12（ structural reform ）

5,137

5,000

3,748

3,761

2,680

2,500
0
2014/122015/12

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

2021/1219

Changes in Actual Business Performance by Segment (for Last 5 Years)(Million yen)

80,000(Million yen)
Sales in the initial estimate (left)
Sales in the actual result (right)

60,000

Human
Resources andEducation
Business

6,000

The deviation from the plan was minimal
and the growth was healthy.

Segment income in the initial estimate (right)

5,000

Segment income in the actual result (right)

40,0004,000

20,0003,000

0Profit margin（Initial
estimate⇒Actual result）

2,000

2014/122015/122016/122017/122018/12

6.1%⇒7.1%

7.3%⇒7.8%

7.6%⇒7.7%

7.1%⇒7.1%

7.3%⇒6.6%(Million yen)

60,000(Million yen)

bubble-like conditions

6,000

Sales in the initial estimate (left)
Sales in the actual result (right)

5,000

Segment income in the initial estimate (right)

40,0004,000

Segment income in the actual result (right)

Real EstateBusiness

3,000
20,000

2,000
1,000

0
Profit margin（Initial
estimate ⇒Actual result）

0

2014/122015/122016/122017/122018/125.9%⇒12.0%

6.3%⇒9.6%

10.6%⇒15.0%

7.3%⇒9.4%

6.8%⇒8.8%

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved20

FY2019 Business Forecast•

The implementation of strategies, which adhered to the new mid-term managerial plan, sustained thegrowth of the Human Resources and Education Business. Along with the expansion in sales thatexceeded the 5-year plan goals, the Real Estate Business shifted towards strategies that focus onsafety even more, as the inversion of the bubble-like external environment was expected.
Results for theterm ended Dec.
2018

Forecast for theterm ending
Dec. 2019

Unit: Million yen, %YoYChangePct.
ChangeNet sales

142,894

155,452

12,557

8.8

Operating income

7,370

6,049

-1,321-17.9

Ordinary income

7,357

5,910

-1,446-19.7

Net income attributable to

4,650

3,672

-978

-21.0

276.38218.11
65.5-58.27

-21.1

-17.5

-21.1

owners of parent

EPS (yen)
Dividend per share (yen)83.0

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved21

FY2019 Factors for increasing or decreasing operating income•

The Real Estate Business is amid the process of changing the revenue structure in order to strengthen
its adaptability to the external environment, and the rising cautiousness of purchases in thedevelopment-related business, etc. are being reflected in the new estimate. On the other hand, therenovation-related business is expected to keep growing.
As for the renovation-related
business, we concentrate on
strengthening the brand,
expanding the target area, etc.

Upfront investments to
support growth gradually
showed its effects.

Further improving the safety line of business activities- Predicting the inversion of bubble-like conditions⇒ a decline in profit margin- The effects of increased purchase cautiousness in the
period up to the previous term.

315
154

653

-1,836

-607
7,370
6,049

FY2018Operating income

Human Resources
and Education
Business

Information andTelecommunications
Business

Other

Real EstateBusiness

Adjustment

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

FY2019Operating income(estimate)22

Business Forecast by Segment•

As for the company’s mainstay business, the Human Resources and Education Business,
all segments are estimated to increase sales and profit.
Results for theterm ended Dec.
2018

Unit: Million yen, %Factory BusinessNet sales
Segment income

Human
ResourcesandEducation
Business

Technology BusinessNet sales
Segment income

R&D BusinessNet sales
Segment income

Sales & Marketing
Business
Total (reference)

Net sales
Segment income

Net sales
Segment income

Real EstateBusiness

Real Estate BusinessInformation andTelecommunications
Business

Information andTelecommunications
Business

Other

Net sales
Segment income

Others

Net sales
Segment income

Net sales
Segment income

Net sales

Total

Elimination or
corporate
Operating income

49,524
3,169
15,200
1,337
6,779
559
3,533
-100
75,0384,964
52,011
4,589
12,376
3
3,467-270
142,894-1,917
7,370

Forecast for theterm ending
Dec. 2019(Profitmargin)(6.4%)(8.8%)(8.3%)－(6.6%)(8.8%)(0.0%)－(5.2%)

53,427
3,309
18,228
1,548
7,638
719
4,066
40
83,361
5,617
56,063
2,753
12,019157
4,008
45
155,452-2,525
6,049

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

YOY(Profitmargin)(6.2%)(8.5%)(9.4%)(1.0%)(6.7%)(4.9%)(1.3%)(1.1%)(3.9%)

Change

3,903
140
3,028
211
859
160
533
140
8,323
653
4,052
-1,836
-357
154
541
315
12,558(―)-1,321

Pct. Change

7.9
4.4
19.9
15.8
12.7
28.6
15.1
(―)
11.1
13.2
7.8
-40.0
-2.9
5,133.3
15.6
(―)
8.8
(―)
-17.9

23

Shareholder Returns
We aim to increase dividends stably and continuously, andachieve a payout ratio of 30%.
（Yen）

Dividend per share

90.0

82.7 82.8 83.0

Initial estimate
Results

80.0

75.3
68.5

70.0

65.5

63.2

60.0
50.0

45.7

40.0
30.0

23.7 25.3

20.0
10.0

8.5

8.5 10.0

2012/122013/12

14.3

4.5

0.0
2014/122015/122016/122017/122018/122019/12(forecast)*The forecast and dividend estimated are based on the information that the Company has and a certain assumption that is
considered reasonable. There is a possibility that the actual results may largely differ based on various factors.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved24

Ⅲ. 2019 Measures

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25

Future strategy for Human Resources and Education Business (1)Milestone
Increase of the capability of gathering workers(Enhancement of our company’s attractive features)

Completion of
the HR platform

Further visualization of
personnel for “mobility”

Smoothstaffing ofengineers

Existing
employees

Improvement of retention
rate through the training ofmanagers

Enrichment of acareer development
support system, andstart of operation

Inexperienc
ed workers
Various personnel
training programsStart of investment in systems
Startof review of evaluationsystem

Further development and improved
operation of the career development
support system
Enhancement of recruitment of
human resources who have awide range of skillsMoreadvancedfields whereneeds arestrong

Evolution of the capability of attracting workers
Increase of workers engaged
×
Charge rationalization

Finished
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Development of the basefor bilateral matchingby accumulating data on
job seekers’ preferences

Plan
26

Future strategy for Human Resources and Education Business (2)2019 Measures
ChangesIn the businessenvironment

Amendments to the Worker Dispatch Law, laws related to reforms of ways of working, amendments to the Immigration Act, etc.
Other companies are implementing strategies to differentiate themselves as their survival depends on it.

Our stance
Human resources

Clients

Matching areas

Improving the individual value and building teams

Expanding while selecting and concentrating on
specific industries

Creating and expanding matching areas

Create value by fortifying our organizations
through education and a broad-based entry

Aim to expand industrial areas and occupational
categories from a medium-to-long-term standpoint.

Human resources development(Improving the value of“individuals”)

Selection of and concentration
on growing industries

Team building(Our corporate value)

Cultivating new fields and areas

An organization with thicker
layers

A wide selection of positions toapply for(Deep bidirectional matching)

Broaden matching areas in new fields horizontallyand in existing fields verticallyCreate new
Matching areas

Growth acceleration and stabilization
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

27

Future strategy for Human Resources and Education Business (3)About the utilization of foreign workers
Current utilization areas

Status of residence

Related examples

Restrictions on work permits

Residency status for professional or
technical fields
Residency status based on social
statusHealth care provider, educators, transferees working for a multinational
corporation, lawyers, etc.
Permanent residents such as second generation Japanese descendants,
Japanese spouses, permanent residents.
Trainees who seek the transfer of technology in related fields such as the
manufacturing, fishing, and agriculture industries.
EPA candidates for nurses and care workers, working holiday, amateur
sports players, etc.

Work is only permitted within the scope prescribed in theresidency status.

Technical Intern Training
Designated Activities

Work activities are unlimited.
Must return home after completing the intern training
within a maximum of 5 years
Must return home if he/she can’t pass the state exam
within 3 years

Newly
established

Activity other than that
permitted under the status ofresidence

Part-time jobs of transfer students, etc.

Work activities are capped at 28 hours per week, and 8hours per day if he/she is on vacation

Highly-skilled workers class 1

Considerable knowledge or experience in any of the designated 14 fields
confirmed through an exam.

Limited to a maximum of 5 years.

Highly-skilled workers class 2

Not accepting for the first few years after establishing the system.

Unlimited

Challenges

Does hiring foreign workers fits their nature?
- Recruitment suitable for the purpose of their status of residence- Arrangements by the receiving party (Work environment and accepting
companies)- Supporting workers (culture, daily life, and blending in a local community)- Compliance

Are measures being taken to cope with the sudden increase?

It is highly dependent on who and how to utilize foreign workers, but there are also uncertainties.
Our stancebased on currently
available information

Make extensive efforts to closely watch the system's course, prepare for the expected increase,and create a solid system to support companies and individuals.

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

28

Future strategy for Real Estate Business (1)Milestone
Entry to newfieldsDevelopment

Business expansion
in major cities acrossJapan completed

Singlefamily
housingEfforts for actualizing
comprehensive realty business inmajor urban areas

Entry to new fields

PrefabricatedRenovation
housesStrengthening/launch of
business whose payback
period is short

General management of
information throughout Japan;
development and operation ofsystems shared nationwide

Design of new local
strategies utilizing
information

Strengthening of brands/area expansion

Commercialization grasping the field and timing at which development-related ROI is maximized

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

Plan
29

Future strategy for Real Estate Business (2)2019 Measures
Marketconditions

Future uncertainties
Condominiums market

Decreased sales

Business land trading market

Profit margin shrinks

Utilizing information gathered from a wide range of areas and regions when selecting the market or area to focus on,
and to properly control the degree of purchases and judge the timing of the sales.

Basicstrategies① Further expansion of recurring-revenue businesses + ② Volatility management of one-time revenue business① Continuously strengthening
renovation-related businesses
concretestrategies②Development-related business expansion(Example) Conversion
Conversion to a hotel
Kudanminami project (Tokyo)- Deepening brand strategies- Further area expansion- strengthening marketing

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30Review and future strategy for Information and Telecommunications BusinessResults in 2018 and future strategies
To continue the scrap-and-build strategy (including M&A) by carefully assessing thecharacteristics of each store and aim to acquire the benefits of remaining players aswell as to attain community-based expansion.

Investment

Expand more superior existing stores
Expand in new areas

No. 1 inTrain customer service staff

the region

Acquire customers

Secure mobile communications carriers
Improvement in
performance
To pursue products/services that bring recurring revenue
Efforts to distribute new IT-related products and services

Strengthening
corporatebusinesses

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved31Topics
March 2019 Opening of “Alps Gym,” the massive athletic facility that will be the largest in westernJapan, inside Shiga Agricultural Park “Blumen Hugel Farm (Nishioji, Hino-cho, Gamogun, Shiga), which is run by Farm Co., Ltd.

Goal

Improve facilities to attract more customers- It’s designed in harmony with nature, has a height of 17 meters with 3 stories and has the largest scale in western Japan.
- The 72 installed stations and viewing platforms of attractions such as enjoying genuine bouldering and crossing log bridges on abicycle, humorous relaxing spots, and more, to keep customers from children to adults entertained.
- Climbing attractions with an innovative stylish design that allows up to 92 people to simultaneously play.

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

32

For More Information
Norio Nishihara

Public Relations and Investor Relations Department
Corporate Planning Division
WORLD HOLDINGS CO., LTD.
TEL: 03-3433-6005
E-MAIL: irinfo＠world-hd.co.jp
URL: http://www.world-hd.co.jp/

No information in this presentation is provided for the purpose of solicitingpurchases or sales of our stock. Furthermore, opinions, forecasts and otherinformation not based on historical facts represent our judgments at the time
this presentation was prepared. We do not guarantee the accuracy of thisinformation and may revise this information at any time without prior notice.
We and other providers of this information assume no responsibility
whatsoever for any losses incurred in association with the information in thispresentation.

人が活きるカタチ

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33

Ⅳ. Reference

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34

FY2019 Quarterly Business Forecast⚫ We will Improve the management transparency and continue to disclose our financial
result forecast on a quarterly basis to help shareholders and investors makeinvestment decisions.

Net sales

Operating income
7,370
155,452
6,049

142,894

2,986

50,48040,9873,390
38,45737,526

2,378
1,613

36,31434,268

1,434
1,170

570
30,11130,1992018/122019/12(estimate)
1Q

-101

2Q

2018/123Q

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

2019/12(estimate)
4Q

35

Quarterly Business Forecast by Segment
Human Resources and Education Business

Real Estate Business

56,06352,011

83,36175,03823,515
20,467

4Q

16,77323,424

Information and Telecommunications Business

12,3762,952
2,682

Net sales

21,546

3Q

18,433

19,854

2Q

17,112

18,445

2018/12

19,024

14,821

4,008

2,685

3,467

11,898

9,194

7,619

2019/12(est.)

2018/122019/12(est.)

5,617

4,589

855

793

2,618

1169
998

3,392

1Q

12,01913,122

11,221

Other

3,186
1,220

3,349

2018/123,528

2019/12(est.)

454

607

2018/122019/12(est.)

157

4,964

1,375

45
79

1,436

Segment income

1,344
1,192

2,061

2,143

1,587

1,661

567
217

1,140

2,753
2,078

79

3

224

5
36
37

456
400

46

66

34
-3

-196

-200

-47
-92

-57

-75

-181

991

828

2018/122019/12(est.)-270

2018/121Q

2019/12(est.)
2Q

2018/122019/12(est.)

3Q

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

2018/122019/12(est.)

4Q

36

1

Human Resources and Education
Business

Ideal state of Human Resources and Education Business
Ideal state to achieve by fiscal 2021 ⇒Our unique position & high profitability
Skill

Dispatch
Dispatch ofskilledresearchers andengineers

High

Undertaking
Makers’ tasks

Dispatch of teams<HR platform>

Co-sourcing

Undertaking of large-scale projects
Our team undertakes the coretasks regarding design,development, manufacturing,etc. that have been conductedby the employees of makers.

Current fields ofcompetition

Team

Individual[Volume zone]
Area for pursuing quantity
We don’t pursue scale.

Temporary tasks
Skill

Low

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

1

Human Resources and Education
Business

Strategy for Human Resources and Education BusinessTo focus on not only “the capability of attracting workers,” but also “the capability of gathering
workers”
Capability of gathering workers

Capability of attracting workers
We have already achieved a certain level.
<Other companies are still at the stage ofmaking efforts>

Evolution

 Further efforts to utilize SNS Establishment of a website for eachbusiness
 Improvement in recruitment
efficiency through the collection andanalysis of big data, etc.
 Personal preferences are grasped,and data are accumulated andutilized for regional marketing(recruitment), etc.

(Attractive features of the company)

Current
state

Under development

From
now onConcentration

Investment

Increase of transactions with favorable
conditions, through the cooperation with

 Production of a roadmap forenvisaging future Development of HR systems
 Improvement of treatment and theworking environment
 Improvement in the personnel
development environment
 Brand development

Increase of good-quality personnel,

High return

improvement of retention rate and stable

the sales section
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

operation38

1

Human Resources and Education
Business

Maximizing the corporate value with our “capability of attracting
workers” and “capability of gathering workers”
Provide “a place where anyone can work” and “a place for re-learning”

HR platform

Careerdevelopment

Advanced technical skills
High income

実績の浸透

Stable employment
environment

A wide array ofchoices

capability of attracting workers

R&D
Tech

Improvement of skills

SIFC

A thorough human resource training program

To support workers in“relearning” and provide
them with an environment
where they can work for along period of time

Staffing

Creation of
a newpopulation

capability ofgathering workers

Brand development

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39
39

2

Real Estate Business

Ideal state of Real Estate Business
Ideal state to achieve by fiscal 2021
To strategically develop an operational system for enabling the flexible procurement and sale according to region andmarket situation, and actualize robust business (profit structure) that is not swayed by the economic environment

・We have recently developed systems for maximizing profit.
・From now on, we will disclose quarterly forecasts from the viewpoint of transparency.

Ideal profit structure

One-time revenue
business

ProfitDevelopment/Single-family housing
Entry to newfields and regions

Effects of market fluctuations

Renovation/Prefabricatedhouses/lease management/sales
brokerage

Recurring-revenue
business

FutureCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved40

2

Real Estate Business

Timely Execution of Strategies by Integrating Information
Efforts for realizing comprehensive realty business in major urban areas, anddesign and implementation of new local strategies while putting together
information taken nationwide
Nationwide network
Key sites
Existing sites

Hot info(market trend, etc.)

Entry to new fields (blanks)

Nationwide
information
sharing

Existing business
Developer

Single-family
Renovation
housingSales
brokerage

Lease
management

Prefabricatedhouses

SapporoSendaiTokyo

Design of strategies
for each region

Osaka
Fukuoka

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41