FY2016 Second Quarter Financial Results

August 22, 2016 (Mon.)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Ⅰ. Summary of FY2016 Second Quarter Financial Results
Ⅱ. FY2016 Business Forecasts
Ⅲ. Future Activities

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

1

Ⅰ. Summary of FY2016 Second Quarter Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Topics
On Jun. 29, our company was listed in the first section of Tokyo Stock Exchange (TSE).
We would like to express our thanks to your support.

 On Mar. 22, our stock market was changed fromJASDAQ (standard) to the second section of
TSE.

 On Jun. 29, our stock market was changed fromthe second section to the first section of TSE.

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

3Second Quarter Summary Net sales, operating income, ordinary income, and net income decreased year on year, but theincomes were larger than the estimated values for 2Q.
 The primary reason for the declines in sales and income is the concentrated posting of sale oflarge-scale real estate in the realty business in the same period of the previous year. The rate ofprogress to the full-year forecast is as planned.
Unit: Million yen, %FY2015/2Q
actual

FY2016/2Q
actualNet sales

52,866

41,608

11,25821.3

43,170

1,562

96.4

Operating income

4,484

2,111

2,372

52.9

1,767

344

119.5

Ordinary income

4,464

2,088

2,375

53.2

1,686

402

123.8

Net income attributableto owners of parent

3,106

1,199

1,906

61.4

1,034

165

116.0

YOY
ChangePct. Change

FY2016/2Q
budget*Results vs Budget
ExcessAchievem ent
rate*Announced on February 3, 2016

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

4Sales by Business Segment for 2Q
 The human resources and education business is healthy, mainly because of the increase of transactions in thelogistics field.
 The real estate business saw the decreases in sales and income, because the sale of real estate was concentrated in
the second half as compared with the previous fiscal year.
 The information and telecommunications business improved profitability through the intensive investment instores and personnel so far.
FY2015/2Q
actualUnit: Million yen, %Factory Busine ss

Technology Busine ss

Human resourcesand education
business

R&D Business
Sale s & Marketing
Busine ss
O thers

T otal (reference)

Real estate business

Real Estate Busine ss

Information andInformation and
Te lecommunications
Busine ss

telecommunications
business

Net sales

13,210

Segment income

925

Net sales

4,648

Segment income

512

Net sales

2,271

Segment income

265

Net sales

1,743

Segment income

95

Net sales

221

Segment income

6(7.0%)(11.0%)(11.7%)(5.5%)(3.0%)Net sales

22,095

Segment income

1,804

Net sales

24,235

Segment income

3,372

Net sales

6,535

Segment income

△22

(―)

4,484

(8.5%)Net sales
Total(Profitmargin)(8.2%)(13.9%)

52,866

Elimination or corporate

Operating income△670

FY2016/2Q
actual

13,857
948
4,912
538
2,641
255
2,565
147
227
5
24,205
1,896
13,346
934
4,056
131
41,608△850
2,111(Profitmargin)YoY
Change(6.8%)(11.0%)(9.7%)

P ct. change

4.9

32,571

22

2.5

2,316

263

5.7

10,669

26

5.1

952

370

16.3

5,650

△9

△3.6

565

54.9

296

6

2.8

547

52

(2.5%)(3.3%)(5.1%)

47.1△0△ 13.32,109

26
54,963

5.1

4,157△10,889△ 44.937,092154

91△2,438△2,478△11,258△2,372

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Ratio to fullyear budget

42.5(7.1%)

41.0
46.0(8.9%)

56.5
46.8(10.0%)

5,525

9.5

(7.8%)(7.0%)(Profitmargin)647

821(5.8%)

Full-year
budget*45.2
46.4(5.4%)

49.8
41.6(4.8%)

21.7(7.6%)

45.6

44.0
36.0
(10.6%)△ 72.3

3,921

(―)

200

△ 21.3

100,11141.6△2,003－△ 37.9△ 52.9

8,056

6,275

23.8
50.4

(2.5%)(6.3%)

66.0

33.7*Announced on February 3, 2016

5

Progress of Each Segment with Respect to the Budget(1) Human Resources and Education Business
The major human resources business segment is progressing healthily as first budgeted.

Factorybusiness
ファクトリー事業

Technology
business
テクノ事業

R&D
business
R&D事業

Sales
& Marketing business
セールス＆マーケティング事業

4Q

Net Sales

3Q
2Q
1Q
前年度

FY
2015

今年度予算

Budget

今年度
FY
2016

The impact of the Kumamoto
Earthquake was insignificant.
Profit grew mainly in the logistics
field.

前年度
FY
2015

今年度予算
Budget

今年度
FY
2016

70 new graduates recruited. Staffing
completed early.
The cooperation with the logistics
sector is going well.

前年度
FY

今年度予算
Budget

2015

今年度
FY

2016

82 new graduates recruited (thelargest number in corporate
history)
Profit grew through early staffing.

前年度
FY
2015

今年度予算
Budget

今年度
FY

2016

Both CB and OCS are growing
steadily.
The cooperation with the logistics
sector contributed.

4Q

Segment income

3Q
2Q
1Q
前年度
FY

2015

今年度予算
Budget

今年度
FY

2016

前年度

FY
2015

今年度予算

Budget

今年度
FY

2016

前年度

FY
2015

今年度予算

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

今年度
FY

2016

前年度

FY
2015

今年度予算

Budget

今年度
FY

2016

6

Progress of Each Segment with Respect to the Budget(2) Real Estate and Information and Telecommunications Businesses
The real estate business is progressing healthily as a whole, although it is expected that the sale of real estate is concentrated
in the second half.
As for the information and telecommunications business, profit is recovering steadily thanks to the business investment in
the previous yearRealestate business
不動産ビジネスInformation情報通信ビジネス
and telecommunications business

4Q

Net Sales

FY
2015

4Q

3Q

3Q

2Q

2Q

1Q

1Q
FY
2016

Budget

前年度

今年度予算

今年度

For this term, sale of real estate will beconcentrated in the second half.

FY
2015

前年度

Budget

今年度予算

FY
2016

今年度

Recovery of operating income
thanks to the business investmentin the previous fiscal year

Segment income

FY
前年度

Budget
今年度予算

FY
今年度

2015

2016
１Q

２Q

３Q

FY
前年度
2015

今年度予算
Budget

今年度
FY
2016

４Q

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7Factory Business<Sales composition by business segment and the number of staff>
 The logistics segment grew considerably, because our performance was highly evaluated, leading to the increase of
new transactions.
 In the manufacturing segment, smartphone-related business was not affected considerably, and mainly the businessof semiconductors grew.
 We optimized our recruiting system, by taking full advantage of dormitories to secure those who can relocate, andso on.
Sales composition by business segment (%)(Million yen)

Up 4.9% 13,857

14,00013,21012,00010,000
8,000
6,000
4,000

(Million yen)
YoY
(Based on
monetary amount)

21.2%

+4.1％

5.7%

6.5%
6.1%

＋19.3％△55.1％

14.3%

15.4%

＋57.8％

10.2%

4.7%

△37.6％

23.4%

8.0%
14.4%

25.1%

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

Segment income

1,000

Up 2.5%925(Persons)

948

10,000

8,567
800

8,000

1,211

600

6,000

400

4,000

＋82.8％

24.0%

21.0%

2015 2Q

2016 2Q

Electric & Electronics
Automobiles
Machinery
Others

585

6,639

2,000

△7.9％

0

0

1,343

624

5,839

200
2,000

7,674

0
2015 2Q

2016 2Q

2015 2Q

Logistics
Semiconductors
Environment & Energy

2016 2Q

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

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8Technology Business<Sales composition by business segment and the number of staff>
 We actively met demand mainly in the fields of semiconductors, information and telecommunications services.
 We concentrated on the development of educational infrastructure, and established Nagoya Design Center as a
CATIA training institution.
 We installed JAVA Online Education System, which was developed jointly with Advan.
Sales composition by business segment (%)(Million yen)

(Million yen)

6,000
5,000

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

Segment income

UP 5.7％
4,648

4,000

27.8%

3,000

5.7%
5.2%
15.9%

(Persons)

600

4,912

YoY
(Based on
monetary amount)

28.1%

＋0.1％

6.0%
4.8%

＋11.6％
△2.1％

16.3%

＋8.8％

512

Up 5.1%

2,000

538

1,697

500
1,500

1,749

219

246

701

772

777

731

2015 2Q

2016 2Q

400
300

1,000

200

2,000

500
1,000

45.4%

44.8%

2015 2Q

2016 2Q

＋4.2％

100
0

0

2015 2Q

02016 2Q

OthersAutomobiles
Machinery
Information and telecommunications business
Semiconductors

Engineer other than production
Design development
Production technology*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged in on-site operation work.

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9

R&D Business<Sales composition by business segment and the number of staff>
 The bio and chemical segments saw favorable demand, and the pharmacovigilance (PV) segment grew by recruiting
overseas personnel.
 We recruited 82 new graduates and over 30 recent graduates, that is, over 100 employees per year, the largest
number in corporate history.
 The business of DOT International is progressing healthily with the corporate clinical trial project, although sometests are postponed.
Variation in the number of staff (3-month average)

Segment income

Sales composition by business segment (%)(Million yen)

(Million yen)

(Persons)

3,000

400

1,000

Up 16.3% 2,641
2,500
2,000

2,271

23.3％

876

YoY
(Based on monetaryamount)＋27.2％

300

21.3％

800

Down 3.6%
265

255

85

730
75

600
1,500
43.0％

46.2％

200
＋25.0％

400

1,000
100
500

791
655

35.7％

30.5％

2015 2Q

2016 2Q

200

△0.6％

0

0

Pharmaceutical/biotechnology

Chemical2015 2Q

02016 2Q

2015 2Q
R&D staff

Clinical2016 2Q
DOT staff*The number of staff is a three-month average. Number of staff included only staff members
who are engaged in on-site operation work.

*PV=Abbreviation of Pharmacovigilance
To appropriately and swiftly collect and analyze safety information, such as
the side effects of pharmaceutical products.

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10Sales & Marketing Business<Sales composition by business segment and the number of staff>
 The sales of CB (dispatch of sales staff) grew, as the direct transactions with department stores and mass retailers.
 The sales of OCS (dispatch of call center operators and others) grew, as the pipelines with leading vendors were
established and the factory business section cemented its cooperation with the logistics sector.

(Million yen)

(Million yen)

3,000

160

2,565
2,500
2,000
1,500

Up 47.1%
39.2％+ 50.2％(Persons)

2,500

147

2,200

140
2,000

Up 54.9%

120
100

95

1,125

1,500

1,366

1,000

651

80

39.2％

60

1,000
500

YoY
(Based on monetaryamount)1,743

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

Segment income

Sales composition by business segment (%)

60.8％+ 50.0％

40
500

60.8％

20

715

0

0
2015 2Q

2016 2Q
CB

1,074

2015 2Q

2016 2Q

OCS

02015 2Q
CB

2016 2Q
OCS*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged in on-site operation work.

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11Real Estate Business<Sales composition by business segment and major real estate to be developed> Development-related: While considering the market situation, we procured land for business from the next fiscal
year and promoted the real estate to be handed over next fiscal year.
 Renovation-related: Sales exceeded the estimate, because we were in the busy season and the procurement in theprevious fiscal year was healthy.
 Prefabricated house-related: We established Kumamoto Branch for restoring the area devastated by the Kumamoto
Earthquake.
Segment income

Sales composition by business segment (%)

Residential Shinagawa Nakanobu Gran Class(Million yen)

(Million yen)

25,00024,23515.1%

20,000

3,500

Down
44.9%

YoY
(Based on
monetary amount)

3,372

3,000
2,500

15,00013,346
84.9%

32.8%

Down
72.3%

2,000

4.9%

10,000Major real estate to be developed＋19.5 ％

1,500

934

1,000
5,000

62.2%

△ 59.6 ％02015 2Q

2016 2Q

500
02015 2Q

2016 2Q

Prefabricated houses-related
Renovation-related
Development-related*The prefabricated house business was established in
4Q of 2015, as Omachi World Co., Ltd. became asubsidiary.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved<Location> Nakanobu, Shinagawa-ku, Tokyo<Access> 2 min. on foot from “Ebaranakanobu” Stationof Tokyu Ikegami Line
<No. of units to be sold> 52 units

12

Information and Telecommunications Business<Variations in sales and the number of stores> We enhanced the sale of related products to meet the needs of customers, increasing revenue per
customer.
 We developed efficient large stores through abolishment and integration, and strived to improve
competitive advantage.
Segment income

Sales for each target(Million yen)

(Million yen)

8,000

150

6,535
6,000

8.3%

Down
37.9%

YoY
(Based on
monetary amount)

4,056

4,000

12.8%

《Plentiful product lineup》
131

100

△3.5％

50

△41.0％

0

91.7%

2,000
87.2%

△22
0

△50
2015 2Q
Individual

2016 2Q

2015 2Q

2016 2Q

Corporation

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13

Financial Condition B/S For the next fiscal year, we procured new land for business in each area, increasing real estate forsale in process.
Total assets(Million yen)

80,00056,32960,000Current
assets58,48452,049（+1,647）

 Decrease in cash and deposits
 Decrease in real estate for sale
 Increase in real estate for sale in process

40,00050,402

52,049

5,927

6,434

End of FY2015

End of FY2016 2Q

1,441 million yen
3,126 million yen
6,829 million yen

20,000
0

Fixed assets

Current assets

80,00060,00056,32940,00032,91334,506

11,51911,60011,897

12,376End of FY2015

End of FY2016 2Q

0
Net assets

Fixed liabilities

1,672 million yen
911 million yen

58,484

Net assets

20,00046,107（+1,675）

 Increase in short-term debt
 Decrease in income taxes payable

Total liabilities/net
assets(Million yen)

Current
liabilities

12,376（+479)

 Increase in retained earnings

436 million yen

Current liabilities

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14

Cash Flows In operating CF, there was an expenditure of 1,357 million yen. In investing CF, there was an
expenditure of 1,099 million yen. In financing CF, there was an income of 1,015 million yen.
(Million yen)

12,000Operating CF

Investing CF

Financing CF
Operating CF△1,0998,000

・ Income before income taxes
・ Increase in real estate for sale・ Decrease in other accounts payable
・ Income taxes paid
・ Income taxes refund△1,357

10,0001,015

2,088 million yen
3,702 million yen
922 million yen△1,669 million yen
368 million yen

Cash and cash
equivalents at
end of year

Cash and cash
equivalents at
beginning ofyear

Investing CF・ Purchase of property, plant and equipment

6,000

10,7699,318
4,000△624 million yen
・ Purchase of intangible assets△261 million yen
・ Purchase of investments in non-consolidated subsidiaries△261 million yen
・ Payments of loans receivable△252 million yen
・ Collection of loans receivable
288 million yen
Financing CF

2,000・ Net increase in short-term loans payable
・ Proceeds from long-term loans payable
・ Repayment of long-term loans payable
・ Cash dividends paid

△1,451 million yen

3,277 million yen
2,782 million yen△4,274 million yen△763 million yen

0

End of FY2015

Operating

Investing

Financing

End of FY2016 2Q

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15Regarding the Impact of the Kumamoto Earthquake
We would like to express our heartfelt condolences to the victims of the earthquake. Our
company prioritized what we can do for our clients and employees as an enterprise based in
Kyushu.
《Situation of damage》
Just after the earthquake
The business operation by over 200 workers at 2
business establishments in Kumamoto Prefecture wasstopped. Production output declined in other regions,too.

From the second half
The base in Kumamoto Prefecture decreased.

Securing of workplaces through the transfer
among business establishments↓
The effect on the results for 2Q is minor.

Recruitment of several hundred workers asbudgeted, and there is the effect on related
business establishments.

Expansion of the impact from the second half
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

16Regarding the Support for the Recovery from the Kumamoto Earthquake
Omachi World started aid projects as a local enterprise, although its affiliatedfactory is Kumamoto Prefecture was damaged. The company has offered 40
prefabricated houses in Mashiki Town, Ozu Town, and Minamiaso Village.

Asahi Shimbun (Kumamoto edition): Jul. 29, 2016 issue

Kumamoto-nichinichi Shimbun: Jul. 29, 2016 issue

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17II. FY2016 Business Forecasts

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18Summary of FY2016 Business Forecast
 It is estimated that sales will grow for the 7th consecutive term and profit will increase
for the 6th consecutive term, marking record highs.

FY2015 actual

FY2016 budget*

Change from forecast
ChangeUnit: million y en, %Pct. change

100,111 12,127
6,275 1,138
6,153 1,019

Net sales

87,984

Operating income

5,137

Ordinary income

5,133

Net income attributable toowners of parent

3,810

3,814

3

0.1

228.05228.27
68.5

0.2

0.1

22.8

49.9

EPS (y en)
Dividend per share (y en)

45.7

13.8
22.2
19.9

*Announced on February 3, 2016.

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19

Business Forecast by Segment
 All of the 3 core businesses are estimated to increase profit.

FY2015 actual

Unit: Million yen, %Factory BusinessTechnology Busine ss

Human Resources
and Education
Business

R&D Busine ss
Sale s & Marke tingBusiness
O the rs

T otal (reference)

Real EstateBusiness
Information andTelecommunications
Business

Re al Estate Busine ss

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

Inf ormation andNet sales

Telecommunications B usiness

Segment income

Net sales
Total

Elimination or corporate

Operating income

26,910
1,801
9,547
989
4,755
518
3,972
218
491
15
45,677
3,543
31,785
3,061
10,522
4
87,984△1,472
5,137(Profitmargin)(6.7%)(10.4%)(10.9%)(5.5%)(3.2%)(7.8%)(9.6%)(0.0%)(5.8%)FY2016 budget*

32,571
2,316
10,669
952
5,650
565
5,525
296
547
26
54,963
4,157
37,092
3,921
8,056
200
100,111△2,003
6,275(Profitmargin)(7.1%)(8.9%)(10.0%)(5.4%)(4.8%)(7.6%)(10.6%)(2.5%)(6.3%)

Change from forecast
Change

5,661
515
1,121
△36
894
47
1,552
77
56
10
9,286
614
5,307
860
△2,466
195
12,127(―)
1,138

Pct. change

21.0
28.6
11.7
△ 3.7
18.8
9.1
39.1
35.5
11.4
70.3
20.3
17.3
16.7
28.1
△ 23.4
4,054.5
13.8
(―)
22.2

*Announced on February 3, 2016.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved20Shareholder Returns
From fiscal 2016, we aim to achieve a payout ratio of 30%.
(Yen)

Dividend per share

68.5

70.0

Ranking of dividend yield (forecasted by the company)
60.0
50.0

In the first section of TSE・・・10th
In TSE・・・20th
In the entire market・・・・・・・・・21st

40.0(updated on Aug. 19, 2016)
Source: YAHOO! Finance

45.7

30.0

23.7

20.0
10.0
0.0

4.33

4.5

4.5

FY2009FY2010FY20118.5

10.0

FY2012FY2013

FY2014FY2015FY2016
forecast*The forecast and dividend estimated are based on the information that the Company has and a certain assumption that is consideredreasonable. There is a possibility that the actual results may largely differ based on various factors.

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21

Ⅲ. Future Activities

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved22Outline of the Mid-term Managerial Plan (2014-2016)

Goal

Term ending Dec. 2016

To become a corporate group with sales of 100 billion yen

Basic strategies

Mid-term managerial plan

● To inject managerial resources tomore promising fields● To expand profit rather than sales● To pursue the cooperation andsynergy among group companies

2014/12（Results）

2015/12（Results）

2016/12(Goal for the last
fiscal year)

2016/12（Budget※）Sales

68.8 billion yen 87.7 billion yen

100 billion yen 100.1 billion yen

Operating income

3.7 billion yen

5.1 billion yen

5 billion yen

6.2 billion yen

ROE

30.3%

41.8%

20.0%

30.8%

Equity ratio

16.1%

19.2% 25.0% or higher

23.2%

Payout ratio

20.0%

20.0% 20.0% or higher

30.0%

We aim to establish an optimal portfolio for boosting growthpotential and profitability further.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

23

Future Measures in the “Personnel and Education Business” 1
Business environment《Survey by the Bank of Japan》 The performance in the manufacturing field is estimated to
decline till the end of the year.
・Significant difference in performance among business types and enterprises
・Businesses are so understaffed that the ratio of job offers to job seekers exceeds 1.

《About 1 year after the amendment to the Worker Dispatch Law》
The differentiation by coping with the law will become obvious.
・A variety of problems with the enterprises that cannot respond to the amendment will emerge.

Short-term viewpoint

Needs of clients

Needs of applicants

Selection of enterprises that can securenecessary personnel

Increase in job opening-toapplication ratio

Selection of enterprises that can meet the needs forcareer (short and long-term employment)

Selection of enterprises that can securecompliance

Amendment to
the Worker
Dispatch Law

Selection of compliance-oriented enterprises where
employees can develop their careers

The needs for our company are estimated to grow.

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24Future Measures in the “Personnel and Education Business” 2Strategy

To take various measures for “enhancing recruitment”

Domain expansion in various
fields● To expand our business domain in new field, by utilizing theinfrastructure of the existing businessBusiness expansion throughM&A● To strengthen our existing business and expand our business field
Results: Noritz Taiwan (Techno), Nikken Techno (repair)Job creation for personnel withvarious aims

● To maximize labor population by creating jobs

Increase of external alliancefirms● To increase employment by utilizing management capability
and increasing alliance firms

Systematization of careerdevelopment● To develop personnel by offering workplaces and education

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Future Measures in the “Personnel and Education Business” 3

Conventional
business

The major task was to meet the needs of clients… Matching business= Mobilization of labor population

What our company considers…

Real job creation means “the creation of personnel and tasks”= Maximization of labor population
How newbusinessshould be
operated

For people ⇒ Creation of working
personnel

For enterprises ⇒ Creation of
workplaces● Expansion of business fields in which workers
can take on a challenge● System for making up for insufficient skills(career development)● Skill improvement through long-term
employment● Creation of workplaces where workers cantake on a challenge● Sharing of merits of personnel utilization● Provision of know-how as first-moveradvantage

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Future Measures in the “Personnel and Education Business” 4
As for the personnel and education business, we will develop platforms in various
manufacturing fields, by creating new labor population.
《Expanding outsourcing domain》《Technological innovation of engineers》
Technology

Startup

Manufacturers’ domain (core technology)

Personnel platformPV
OCS
Business domain
Logistics
that has been
Factory engineer
expanding sinceCROstart-up
Construction
RepairCB
R&D
TechnoFactory

Present

Analog2K
FeaturephonesISDN
FDDigital4K
SmartphonesWi-Fi
HD

Outsourcing domain

Educational system for keeping up with technological innovation

Engineer

Dependence on individuals

Past

Time axis

FutureTime axis

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27

Future Measures in the “Real Estate Business” 1
Business environment
Rise in land
prices

Factors in the rise in land prices
・Large consumption by foreign visitors to Japan(rise in rents)
・The prices of land for hotels rather than condominiums increased.
・The high increase rates in local central cities contributed.

・The prices of condominiums in urban areas
remain high.
・The land prices in local regions will increase
further.

Problem ofvacant houses

Vacant houses are increasing in both urban and rural areas.
・Aging population and declining birthrate･ Increase of newly built houses

・Expansion of procurement regions
・Rationalization of prices of single-family houses
procured

Short-term viewpoint
Procurement
Rise in the prices ofreal estate procured

Sale・Skyrocketing of land
prices through the
expansion of hotel needs
・Rise in the prices ofvacant good-quality
houses● Procurement by enterprises that have their original routes● Leading companies will procure real estate while
prioritizing supply, even if prices keep increasing.

Rise in selling prices
・Increase in land prices
・Increase in labor costs
・Increase in building
material prices● Change in the purchase environment of buyers
Buyers keep their willingness to buy, as their incomesincrease and interest rates drop.

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28

Future Measures in the “Real Estate Business” 2Strategy

To prioritize the business operation while grasping the economic andbusiness environments【External environment】【Strategies and measures】

Development

・Areas where land prices are stable
Sendai, Tokyo, Osaka, Fukuoka● Prior acquisition of seed lots and adjustment ofentitlements= Creation of land for business● Development by our company and sale of high-priced
land= Expansion of profit rate and risk hedge

Renovation

・ Community-based achievements
will be accumulated.

● To promote procurement at reasonable
prices, by utilizing the results in each region

Prefabricated houses

・To meet the needs for restoration
・Olympic-related needs will grow● To start operating new facilities (Kumamoto
Branch)● To increase new contracts in eastern Japan

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29

Future Measures in the “Information and Telecommunications Business” 1

Business environment
Cell phonemarketShipment volume has been
decreasing for 4 consecutive years.
Smartphone penetration rate: 60.2%● Utilization of ICT (such as IoT, big data, and AI) based onnational measures● Smartphone penetration rate will grow further.

Distributors

No. of stores is dropping.

● Adjustment in response to the decline in sales volume

Short-term viewpoint
Acceleration of customer retention● Further differentiation of store competitiveness (storesand customer services)● Acceleration of integration and restructuring by leading
companies

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Future Measures in the “Information and Telecommunications Business” 2Strategy

To enrich services for retaining customers and expand target areas
to increase the population of customers

To keep enriching in-store
services● Store development and operation, to increase repeat customers● Review and execution of career development programs for sales
staff

To expand the network of
stores● Development of a highly efficient store network (existing stores)● Development of store networks in new areas through area
expansion (new stores)

To increase products wehandle (primary products)● Increase in profit rate through the enrichment of primary
products

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved31For More Information

Yukari Tsuda
Public Relations and Investor Relations Department
Corporate Planning Division
WORLD HOLDINGS CO., LTD.
TEL

03-3433-6005

E-MAILirinfo＠world-hd.co.jp

URL

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

No information in this presentation is provided for the purpose of soliciting purchases or sales ofour stock. Furthermore, options, forecasts and other information not based on historical facts
represent our judgments at the time this presentation was prepared. We do not guarantee theaccuracy of this information 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 incurredin association with the information in this presentation.

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32