FY2014 Financial Results

February 17, 2015
WORLD HOLDINGS CO., LTD.
JASDAQ (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

1

I. FY2014 Topics
II. FY2014 Summary of Financial Results
III.Trends by Business Segment
IV. FY2015 Business Forecasts

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2

I. FY2014 Topics

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FY2014 Topics
World Holdings• Shift to a Holding Company System• Aggregated highly-related business to accelerate assessments of the situation

Human Resources and Education Business• Strengthened overseas expansion (*see attachment)• Established joint venture Engma Intec. with Engma (China) Co., Ltd.
• Commenced human resources education in China in collaboration with the Shanghai Jiao Tong
University in terms of the education system• Number of operating personnel reached 11,000• Operating personnel including outsourcing reached 11,000 for the first time in six years, for the
first time following the Lehman Shock (2008)

Real Estate Business• Commenced property delivery in the Tohoku area for the first time
• Commenced delivery of own condominiums in Miyagi and Fukushima• Commenced nationwide deployment as a comprehensive real estate business• By including Mikunisangyo Co., Ltd. under the umbrella of the Holdings Group, expanded thebusiness domain and expanded the business area from Hokkaido to Kyushu

Information & Telecommunications Business• Optimization of dealers• Aggressively advanced the scrap-and-build of stores, focused on improvement of unprofitabledealers and further investment in strongly-performing dealers• Expanded corporate division• Commenced enhancement of the corporate division through human resource training inconsideration of corporate support by dealers

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved4II. FY2014 Summary of Financial Results

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FY2014 Summary
Net sales, operating income, ordinary income, and net income all reached record highs.

FY2013

YoY
Change Pct. Change

FY2014

Unit: Million yen, %Net sales

56,450Operating income

2,120

Ordinary income

11/10
Revisedforecast*

Results compared to revised forecast

ChangePct. Change

70,620 r 1,790 r 2.5%

2,164

68,829 12,379 21.9
3,748 1,627 76.8
3,722 1,557 72.0

Net income

834

EPS (yen)
Dividend per share (yen)

3,560

188

5.3%

3,600

122

3.4%

1,992 1,157 138.7

1,900

92

4.9%

49.6

118.5

112.9

10.0

23.7

14.3

Driven by factory business and real estate business* Revision of business forecasts announcement on November 10

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6Trends by Business Segment
Earnings up significantly for the factory business and real estate business
FY2013*

Unit: Million yen, %Factory businessTechnology business

Human
resources andeducationbusiness

R&D business

Sales & Marketingbusiness

OthersReal estatebusiness
Information &telecommunications business

Real estate businessInform ation &telecom m unications
business

Total

YoY

FY2014
ChangePct. Change

11/10
Revisedforecast**

Achievement
rate of therevisedforecast

3,913

18.6

25,620

97.3%

1,204

24,928
1,918

713

59.2

1,800

106.6%

5.7%

7.7%

－

－

7.0%

7,335

1,094

14.9

8,500

99.2%

60

9.5

650

107.5%－－

7.6%

Net sales

21,015

Segment income

Profit margin
Net sales
Segment income

638

8,430
699

Profit margin

8.7%

8.3%

Net sales

3,693

Segment income

195

4,062
159

Profit margin

5.3%

3.9%

Net sales

1,989

Segment income

50

2,679
72

Profit margin

2.5%

2.7%

Net sales

640

Segment income

52

574
18

Profit margin

8.2%

3.2%

Net sales

8,683

369

10.0

4,200

96.7%

△ 35

△ 18.0

170

93.5%

－

4.0%

34.7

2,700

99.2%

22

45.4

60

120.0%

－

－

2.2%

△ 65
△ 34

△ 10.2△ 65.4

600

95.7%

20

90.0%

－

689

－

－

3.3%

79.0

15,500100.3%
103.8%

Segment income

511

15,545
1,869

1,357

265.2

1,800

Profit margin

5.9%

12.0%

－

－

11.6%

Net sales

13,092

△ 484
△ 269

△ 3.7
△ 61.013,500

93.4%

230

74.8%

Segment income

441

12,608
172

Profit margin

3.4%

1.4%

Net sales

56,45068,829△ 1,162
3,748

Elimination or corporate

Operating income
Operating margin

△ 973
2,120
3.8%

5.4%

6,862

－

12,379
△ 189

－

1.7%

21.9

70,62097.5%-△ 1,1703,560

105.3%

1,627

76.8

－

－

-

5.0%

Units less than one million yen rounded down
* The FY2013 results have been reclassified in accordance with the segment changes.
**Revision of business forecasts announced on November 10, 2014

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7Trends by Business Segment(Million yen)

Net sales

2013 2014

25,00020,00015,00010,0005,000
0(Million yen)

Factory

Technology

R&D

S&M

Other

Real estate

Information &Telecommunications

Other

Real estate

Information &Telecommunications

Operating income

2013 2014

2,000

1,500
1,000
500
0

Factory

Technology

R&D

S&M

Units less than one million yen rounded down
S&M: Sales and Marketing*The FY2013 results and February 18 forecasts have been reclassified in accordance with the segment changes.

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8

Financial Condition B/S
Real estate for sale in process and interest-bearing debt have increased due to theadvance of the real estate business(Million yen)

Total assets

48,00036,00046,087

Current
assets•••30,566
41,60624,00028,157(Million yen)

2,409
End of FY2013
Fixed assets

36,000

•
•
•

4,480
End of FY2014
Current assets

Total liabilities/net assets•••

30,56629,032

24,00012,00008,627•867 (+ 230)
2,090 (+1,434) Increase in goodwill
1,523 (+ 406)

29,032 (+9,438)

Accounts payable-Real Estate Business 2,448 (+1,368)
Accrued expenses
3,580(+607)
Short-term debt
15,888 (+4,957) Fund for purchase of realestate for saleFixedliabilities

19,5944,288
6,683

4,480 (+2,071)

Property, plant and equipment
Intangible assets
Investments and other assets

Current
liabilities

46,08748,000Cash and deposits
10,794 (+4,823) Deposits from real estate sales
Real estate for sale
4,699 (+4,184)
Real estate for sale in process 17,794 (+3,598) Acquisition of commercial premises

Fixed assets

12,000041,606 (+13,449)

Long-term debt

8,627 (+4,339)
7,699 (+4,082) Fund for purchase of real estate for sale

8,426

End of FY2013
End of FY2014
Net assets
Fixed liabilities
Current liabilities

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9Cash Flow
Financing CF increased 5,405 million yen, operating CF increased 1,717
million yen, and investing CF decreased 2,300 million yen(Million yen)

14,000OperatingCF+1,717

12,000• Net increase in short-term debt
• Income from long-term debt
• Repayment of long-term debt

InvestingCFr 2,300665
6,441
r 1,521

10,000FinancingCF+5,4058,000

Cash andcash
equivalents
at end ofyear
10,804

6,000
4,000

2,000
0

Cash andcash
equivalents
at beginningof year
5,974

•
•
•
•
•

Net income before income taxes
3,830
Increase in real estate for sale r 4,530
Increase in trade payables
1,467
Increase in accounts receivable
r 455
Increase in accrued consumption taxes
603• Payment of income taxes
r 1,464Up ¥4,829 million• Acquisition of newly consolidated
subsidiaries
r 1,848• Acquisition of tangible fixed assets r 266

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10III. Trends by Business Segment

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11Human Resources andEducation Business

Factory Business<< Sales composition by business segment and the number of staff >>Rapid increase in electrical & electronics and logistics segments
New large-scale projects in the fields of machinery and logistics commenced at the beginning of the fiscal
year made large contribution
Sales composition by business segment (%)(Million yen)

9,000

25,0006,645 6,292

24.9%
20,0005.6%

32.2%
15,00010,000

5,000

5.5%
9.0%
8.9%
10.6%
11.3%
22.5%

0

Transition in the number of staff (3-month average)(Persons)

5,000

9.0%

4,000

＋3.0%

＋0.7%

3,000

14.3%
23.2%

7,121 7,278 7,698

874

982

776

885

994

837

844

766

723

718

7,000
6,000

9.4%

6,887

8,000

13. 6%＋4.60%

6,770 6,998

2,000

306
1,079

587
784

1,263
717

5,718
5,260 4,921 5,059 5,172 5,345 5,513 5,566

1,000
0

FY2013

FY2014

Electrical & electronics

Logistics

Semiconductors

Machinery

Environment & Energy

OthersAutomobiles* The graph indicates domestic sales excluding Taiwan, retroactive adjustments have been
made for segment changes
Refer to the reference data for details on segments other than the above

2013
1Q

2013
2Q

2013
3Q

2013
4Q

Average other companies/acceptance
Number of staff

2014
1Q

2014
2Q

2014
3Q

Segment change adjustment

2014
4Q

* The number of staff is a three-month average, and from 2013 4Q, external staff members
accepted from other companies are included* For the number of staff, the figures have only been changed for nonclerical workers andretroactive adjustments have been madeCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

12Human Resources andEducation Business

Factory Business: Issues and Measures
Proposing the creation of new jobs (paradigm shift)<<FY2014 trends>>
Measures (focusing on clients while
taking trends into consideration)

Background (industry trends)
Increase in production Þ
Increase in staffing demand• Economic recovery• Increase in buying inclinations
Clients • Accelerated depreciation of theyen

Client conditions

Lack of human resources ÞStaffing leading to recruitmentcompany difficulties• Declining labor force population• Increase in direct employment by
manufacturers• Changes in salary levels

Medium to long-term
product trends

There iscontinuity

Short-term busy period

Working environment

Good

Bad

Recruitment criteria

Flexible support

Conditions that do not match theregionContracts at a reasonable
price

Reasonable
price

Not reasonable

Concentration and specialization as abusiness partner<<Priority items for FY2015>>

Results (FY2014)
Net sales• 24,928 million yen

Operatingincome• 1,918 million yen

Year-end
enrollment• 6,449 persons(Compared to 445 YoY)

Achieved record highs<<Measures for resolution of issues>>

Focus investment on
recruitment

Strengthen new recruitment through means such as CM utilization

Optimization of contract
conditions, etc.

Propose reasonable prices based on regional conditions and the skills of
recruiteest

Creation of new employment
frameworks

Creation of new employment frameworks (reform awareness of both
applicants and clients)

Strengthening of logistics

・ Increase the number of registrants and recruits hired by improving awareness of our hiring media called“Job Paper” (Increase registrants by approximately 2 times YoY, increase recruitees by 30 times YoY)

・ Set contract amounts and salaries based on the market

・ Propose suitable for applicants for each region
・ Create employment for people with mismatched skills, women, seniors,and people with disabilities

Concentrated investment,
contract conditions,creation of employment
frameworks, logistics

Increasethenumber of
recruitees

Expansion of logistics partners
・ Creation of employment utilizing proprietary know-how concerning various applicants

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Human Resources andEducation BusinessTechnology Business<< Sales composition by business segment and the number of staff >>As a result of strengthened recruitment and securing of assignment location, enrollment in design anddevelopment sector has increased significantly year on year
Sales composition by business segment (%)(Million yen)Transition in the number of staff (3-month average)(Persons)

9,000
8,000

1,387 1,330 1,349 1,396 1,425 1,470 1,500 1,552

1,500

26.5%

7,000

29.1%

6,000
5,000

6.2%
5. 9%

+0.6%

4,000

15.7%

+0.6%

5.8%
6.5%

1,000

203

213

215

243

162

190

197

191

429

515

567

600

616

628

658

530

715

653

629

632

634

651

659

679

16. 3%

3,000
500

2,000

43.1%

+1.8%

44.9%

1,000
0
Others

FY2013
Automobiles

Machinery0

FY2014

Information Technology & Telecommunications

Semiconductors* Retroactive adjustments have been made for segment changes in the graph.
Refer to the reference data for details on segments other than the above

2013 2013 2013 2013 2014 2014 2014 2014
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
Production technology

Design development

Segment adjustments* The number of staff is a three-month average* For the number of staff, the figures have only been changed for nonclerical workers andretroactive adjustments have been madeCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

14

Human Resources andEducation BusinessTechnology Business: Issues and Measures<<2014 trends>>
Background (recruitment
conditions)

Measures (concentration on new business domains
through the expansion of recruitment frameworks)

Recruitment criteria

New recruitment criteria

Technical skills

OK

NG

Technical skills

OKNG

Human skills

OKNG

Human skills

OK

NG

Age

OK

NG

Age

OK

NG

The red area stating NG indicatespeople not being recruited andstagnation in recruitee numbers

Designanddevelopment
Engineers

Softwaredevelopment

Technical domain

Increase the number of recruitees throughthe relaxation of recruitment criteria
However, securing placement destinations
is necessary<<Priority items for thecurrent fiscal year>>

Results (FY2014)

Production
technology

Factory system engineer domain

Manufacturing

Factory domain

Develop new placement
destinations in collaboration
with the FC businessNet sales• 8,430 million yen

Operatingincome• 699 million yen

Year-end
enrollment• 1,563 persons(Compared to 163 YoY)

Record-high enrollment<<Measures for resolution of issues>>

Expand business domain

Expand the factory system engineer domain in collaboration with the factory business

Human resources training (businessexpansion, organization building)

Organization building so that human resources can be provided in a timely manner

・ Aim for further expansion of recruitment of factory system engineers in between the factory domain and technology
domainExpansion of new graduate recruitment

・ Expand recruitment to establish an organization capable of responding to needs for human resources in a timely manner
50 people in 2015, 100 people in 2016)
・ Commence recruitment activities aimed at gaining 100 recruitees
next fiscal year

Strengthen investments in the repairs
division

Number of new graduate
recruitees

Strengthen new graduate recruitment (20 people in 2014,

Repair engineer education
・ Further invest in training and area expansion for recruitment during
the next fiscal year

100
50
0

Number of recruitees
2013

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2014

2015

2016

15

Human Resources andEducation Business

R&D Business<< Sales composition by business segment and the number of staff >>Underpinned by an increase in demand in the fields ofpharmaceutics and biotechnology, orders and recruitment have both increased, and the numberof staff has steadily grown for DOT
Sales composition by business segment (%)(Persons)
800(Million yen)

4,500

553

4,000
3,500

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

628

633

676

671

686

41

42

50

55

69

70

68

558

564

578

578

607

601

618

2013
2Q

2013 2013
3Q
4Q
R&D staff

2014 2014
1Q
2Q
DOT staff

2014
3Q

2014
4Q

14.5%
14.9%

600

34

3,000
2,500

599 606

45.6%

+3.1%

48.7%

400

2,000

519

1,500
200

1,000
500
0

39.6%

36.8%
0

FY2013
Pharmaceutical/biotechnology

2013
1Q

FY2014
ChemicalClinical* The number of staff is a three-month average* For the number of staff, the figures have only been changed for nonclerical workers andretroactive adjustments have been madeCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

16

Human Resources andEducation Business

R&D Business: Issues and Measures<<2014 trends>>
Background (conditions at eachcompany)
R&D• Increased
investment in R&D
areas⇒ Steadily acquirebusiness• Improve employee
retention• Increase enrollment

DOT• Acceleration of outsourcingof clinical research services⇒ Expansion of needs• Increase in recruitment of
unexperienced people⇒ Increase in enrollment• Lack of experienced people⇒ Factor causing a failure
to gain a large clinical trial
order

Measures (concentrate on preparations forfurther expansion)
R&D

DOT

• Re-build the organization (retention improvement
measures)⇒ Launching management division• Strengthen recruitment measures (increase numberof recruitees)⇒ Recruitment of regional-specific employees⇒ Strengthen employee introduction system• Reasonable price proposals (cost countermeasure)and⇒ Execution of reasonable price proposals• Expansion into new domains (new businesses)⇒ Prepare for establishment of a safety
information division• Expansion into new domains (expand
orders)⇒ Expansion of orders for clinicalresearch⇒ Accumulate know-how• Human resources training (improve project
support capabilities)⇒ Education from actual practice tomanagement• Active recruitment (increase number of
recruitees)⇒ Conduct recruitment beyond targets⇒ Deterioration in fixed costs

Preparations for further expansion of scale<<Priority items for thecurrent fiscal year>>
Newly establish PV business
Expand orders for clinicalresearchStrengthen acquisition of clinical
trial orders
Strengthen new graduate
recruitment

Results (FY2014)
Net sales• 4,062 million yen• Staffing 3,532 million yen• DOT
530 million yen

Operatingincome• 159 million yen

Year-end
enrollment• 678 persons(Compared to 42 YoY)

Achieved record highs<<Measures for resolution of issues>>
R&D
Newly establish PV business・Newly establish division dedicated to safety information (PV) in clinical development

DOT
Actively expand orders for clinical research・Actively acquire orders for clinical researchStrengthen acquisition of clinical trial orders

Fields,recruitment,
organizations

PV clinical
trial
recruitment

・New orders received for 2015
Further
New initiatives
Commonexpansion
Strengthen new graduate recruitment (110 new employees in 2016)
・Double recruitment among fall graduates for R&D and DOT in collaboration with the new graduate division

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17Human Resources andEducation Business

Sales and Marketing Business<< Sales composition by business segment and the number of staff >>Steady recruitment in the OCS business, advancing with the expansion of business foundations throughthe establishment of six locations
Sales composition by business segment (%)

Transition in the number of staff (3-month average)(Persons) 617
1,200(Million yen)

3,000

649

725

783

910

929

1,007 1,174

2,700
1,000

2,400
2,100
1,800

+22.0%

800

3%

0

600

1,500
1,200
900

467

25%

75%

97%

600

400

25

72

210

700 621

617

649

2013
1Q

2013 2013 2013 2014
2Q
3Q
4Q
1Q
Number of CB staff

700

711

308

388

619

707

200

300
0

0

FY2013

FY2014CB

OCS

2014 2014
2Q
3Q
OCS

2014
4Q

* The number of staff is a three-month average* For the number of staff, the figures have only been changed for nonclerical workers andretroactive adjustments have been madeCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

18

Human Resources andEducation Business

Sales and Marketing Business: Issues and Measures<<2014 trends>>
Background (recruitment
conditions)CB• Increased needs forexperienced people⇒ Lack of humanresources
Need to acquire
specialized humanresources

OCS• Steady project acquisition⇒ Lack of humanresources
Need to expand thenumber of registeredhuman resources

Need to form an independent recruitment
population that is specialized<<Priority items for thecurrent fiscal year>>
Expand business domain
Maximum utilization of registered humanresources
Internal expansion of dispersed business
partners
Expand recruitment

Measures (focus on recruitment)
・Secure registered human resources through the establishment of aregistration site focused on sales personnel
・Establishment of recruitment center in line with living movements ofpeople (Shinjuku)
・Establishment of system for the effective utilization of human resources

Results (FY2014)
Net sales• 2,679 million yen

Operatingincome• 72 million yen

Registration site [FASHION jOBPAPER] Year-end
enrollment
http://www.fashion-jobpaper.net/pc/index.aspx
Significant increase in the number ofregistrants and recruitees• 1,183 persons(Compared to 320 YoY)

Record-high enrollment<<Measures for resolution of issues>>
CB
Respond to the needs of department stores and volume retailers
Respond to needs for entire floor outsourcing at department stores and non-brand sales at volume retailers

OCS
Internal expansion of dispersed business partners
Internal expansion of small numbers of dispersed business
partners to achieve efficient business management

Maximum utilization of registered human resources
Expand business beyond the call center domain through the
expansion of registered human resources

CB and OCS common
Expansion of registered human resources

Clients

Types oftransacti
ons

Recruitment
methods

Expandedenrollment

Enrollment
expansionAcquire registrants by focusing on the Shinjuku recruitment center and site PR

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19Real Estate Business

Real Estate Business<< Status of activities from January to December>>
Promoting procurement in consideration of business profitability and flexible response in line with themarket environment
Purchasesituation

SupplyDelivery situation

Contract (2014)

Contract (2015)

14 properties

205 properties

237 properties
5 land tracts

96 properties
10 land tracts

105 properties(including JV)Steady launch in the Tokyo Metropolis
and Tohoku, delivery of own
properties doubled YoY.

Contract selling: 167
properties
Brokerage: 24 cases

Contract selling: 89
properties
Brokerage: 24 cases

Contract selling: 60
properties
Brokerage: 1 case2014 sales activity results(Properties contributing to sales
up to this FY)

Total
428 properties
5 land tracts

Total
109 properties
10 land tracts

Total
166 properties

Delivery results
for last year

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Contracts to berecorded as sales
for this year

20Real Estate Business

Real Estate Business: Condominiums to be Supplied in the Tokyo Metropolitan Area
(World Residential)
FY 2014

2 projects / 73 units

3 projects / 148 units

Residential Monzennakacho East

FY2015Residential Arai Yakushimae

Koto-ku, Tokyo (28 units)

Nakano-ku, Tokyo (37 units)

Residential Shinagawa
Nakanobu II

Shinagawa-ku, Tokyo (52 units)

Residential TsunashimaBranz Yokohama
Bashamichi Residential

Kohoku-ku, Yokohama (45 units)(joint project)Naka-ku, Yokohama(130 units)(59 units)

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21

Real Estate Business

Real estate business: Other Properties to be Supplied in the Tokyo Metropolitan Area
(World Residential)
FY 2014

Detached housing
1 project / 11 properties

Renovation
1 project / 24 properties

Residential Noie Komazawa

Highmart Hiyoshi

Setagaya-ku, Tokyo, 11 units

Kohoku-ku, Yokohama, 24units(Renovation)(Detached housing)

Background factors behind branching out into the detachedhousing business
1. Effective use of property information
2. Drawing on advanced product planning expertise cultivatedin the condominium business3. Diversification of business cycle

FY 2015

Background (reason) for expansion into renovation(1) Dramatically rising prices of new condominiums(2) Resistance towards used condominiums(3) Sense of it being a bargain

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22Real Estate Business: Properties to be Supplied in Tohoku Area

Real Estate Business(World iCity)FY 2014

2 projects / 126 units

2 projects / 201 units

FY 2015

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

Aoyama, Morioka City (38 units)
Aomori Pref.

Akita
Pref.
Iwate Pref.

Yamagata
Pref.

Miyagi Pref.

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

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

Fukushima Pref.

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23Real Estate Business: Properties to be Supplied in Kinki Area

Real Estate Business(World Wisteria Homes)

2 projects (100 units)

FY2015Residential Toyonaka Sone
Toyonaka City, Osaka Pref. (67 units)

Residential Moriguchi
Moriguchi City, Osaka Pref. (33 units)

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24Real Estate Business

Real Estate Business: Issues and Measures
Risk diversification for flexible response to the market environment through a diverse portfolio<<FY2014 trends>>
Background (industry trends)

Measures (preparations forfurther expansion)

Results (FY2014)

Portfolio establishment (fund collection period diversification)(Sales of 6,523 million yen excluding condominiums)
Area hedge effect (implemented for Tohoku property No. 1, Kinki)

Olympic
demandLack of
Economic humanrecovery resources

Reconstruction
demandProfit margin
High

PeriodShort

Contracted
selling
Building
Detached
housing
lot sales

Condominium
sales

Renovation

Net sales• 15,545 million yen

Operatingincome• 1,869 million yen

Number ofunits delivered• 209 properties(increased 115 properties YoY)

Management Period

Long

Properties

Growing demand leading to dramaticallyrising land and construction costs<<Priority items for thecurrent fiscal year>>
Nationwide deployment
Commencement of sales of Kinki
property No. 1
Further portfolio diversification

Achieved record highs

Low
Profit margin<<Measures for resolution of issues>>
Commence sales of Wisteria Homes
・Toyonaka (67 properties)
・ Moriguchi (33 properties)

Stable management through regional andproduct strategy that takes into
consideration the fund collection period,
profit margin, and economic environment
Further portfolio construction following the previous year

Expand coverage area from Hokkaido to
KyushuExpand area nationwide through inclusion of
Mikunisangyo Co., Ltd. in the scope of the Group

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

Business

Collection
periodProfitmarginScale

Condominiums

× Long○ High○ Big

Building
management○ Stable× Low

× Small

Detached housing
sales

○ Low

○ High× Small

Building lot sales○ Low○ High× SmallRenovation○ Low△Normal× Small

Properties

× Long× Low

× Small

Contracted selling○ Low○ High× Small25

Real Estate Business

Real Estate Business: Achieving a Comprehensive Real Estate Business<<Nationwide expansion>>・Development business: major metropolitan areas(Leverage the brand strength of the Residential Series)<Hokkaido>
・ Focus expansion on Sapporo

・Renovation business: nationwide deployment(Leverage careful selection and land expertise of<Tohoku area>

Mikunisangyo)

・ Sendai as focal point for the six
prefectures in the Tohoku region
・ Post-earthquake reconstruction
demand<Chukyo area><Kinki area>
・ Second largest
economic area
・ Focus expansion on
Keihanshin Line area

<Chugoku area>
・ Focus expansion on Hiroshima
and Okayama<Tokyo metropolitan area>

・ Manufacturing region
・ Focus expansion on
Nagoya・ Maximum economic region
・ Population increasing more andmore with inflows from overseas
and other regions of Japan

Extremely resilient management environment-Maximizing synergiesCondominium
Detached
house<Kyushu area>
・ Fukuoka as Asia’s gateway
・ Growing market with a focus on
Asia

Flow
businessLand
RenovationFeebusiness

Brokerage
Management

Mutual complementation
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved26

Information & Telecommunications
Business

Information & Telecommunications Business: Issues and Measures
・Strengthen corporate sales ⇒ Leveraging the know-how developed through products andservices for individuals<<FY2014 trends>>
Background (industry trends)
・Strengthen support for strongly-performing stores・Cash back regulations
・Impact of Docomo on iPhone sales
Decrease in numberof units sold

320,000
240,000

71,19866,042160,000

68,404
69,64573,45450,74080,34587,77087,36883,19485,41078,292

2012

2013

2014

80,0000<<Priority items for thecurrent fiscal year>>
Increase number of mobile phones
sold
Differentiation from competitors
Move away from dependence onmobile phone sales

4Q
3Q
2Q
1Q

Measures (preparations for further
expansion)
Store improvements through crap-and-build efforts
・ Prop-up unprofitable stores・ Active investments in strongly-performing stores
Human resources training in order to expand the corporate
division・ Human resources training aimed at improving the corporate
function of dealers

Results (FY2014)
Net sales• 12,608 million yen

Operatingincome• 172 million yen

Number ofunits sold• 286,000 units

Concentrate on preparations for the
expansion phaseutilizing industry trends<<Measures for resolution of issues>>
Area expansion (M&A strategy)
Expand through the entire Kyushu area through M&A strategy in response to the advance of consolidation

Differentiation through the increase in strongly-performing stores
Leverage financial strength and scale to conduct human resources training and store renovation to increasestrongly-performing stores supported by carriers

Corporate sales area strategy (from focused to broad area)
Use dealer infrastructure to expand the area of the corporate division with functions concentrated on the Head
OfficeCustomers
ExpandHead Office
Customers
supported area
(corporate
Customers
Head Officedivision)(corporate
Increase the
Dealers
division)
Customers
numberCustomersof customers

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

Information & Telecommunications
Business

Taking on New Business Models
Sales of mobile phone accessories

Plans to open threestores in March 2015

Purchase and sales of used mobile phones

Mobile phone repairs and maintenance

There are plans to
expand stores going
forwardMobile phone rentals
Lectures on how to operate mobile phones

Smartphone peripherals market forecast

304.5
billion yen

163.7

Used mobile phone market forecast
Tablets
Smartphones
Feature phones

46

millionunits

18billion yen

millionunits

 Relationship between the number ofshops for Japan’s three main carriers
and the number of iPhone repair shops
Sense of scale of the sales environment
Company S

Carrier shops *As of October 2013

storesCompany A

Carrier shops *As of October 2013

storesCompany D Carrier shops *As of October 2013
Main consumer electronics storesstores*Based on the financial closing data for eachcompany as of March 2013

storesMajor combined dealers

Approx.

Total

storesstoresSense of scale of the repairs environment *As of July 2013
Apple iPhone repair shops(Apple Stores and Apple service providers)

Original repair shops(Source: iPhone Repair Specialist Navi)

2013

2018

Source: 2014, Seed Planning Inc.,“Smartphone and Tablet Peripherals and Accessories Market
Research Report” 2014

2013

2018
Source: 2014, MM Research Institute, Ltd., “Used Mobile
Phone Market Outlook”

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

Total

storesstoresstoresNumber of shops: as of October 2013
iPhone Repair Specialist Navi

28

IV. FY2015 Business Forecasts

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

Major Policies for 2015
Overseasstrategy

Business(upfront
investments for2017 and onward)• Human Resources and Education
business• Strengthen recruitment strategy• Strengthen the logistics division• Invest in DOT International• Invest in the repairs division• Real Estate business• Expand developer business in Kyushu• Stable management based on flowbusiness and fee business• Information & Telecommunications
business• Further strengthen scrap-and-build
efforts (Establish new forms of stores)• Expand through the entire Kyushu region
through M&A strategy• China• Expand enrollment throughstrengthened outsourcing
with Engma Intec.
• Indonesia• Expand in the service
apartment business anddevelopment business forJapanese companies

Management

Stablegovernancemanagement by
HD

Strengthen measures in an aim for sales of 100 billion yen
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30Summary of FY2015 Business Forecasts
Sales expected to increase for six consecutive years

FY2014
Actual

FY2015
Forecast

Net sales

68,829Operating income

3,748

Ordinary income

3,722

Net income

1,992

85,677 16,847
12
3,761
69
3,652
135
2,127

EPS (yen)

118.5

Unit: Million yen, %Dividend per share (yen)

23.7

126.5
25.3

YoY
Change Pct. Change
24.5
0.3
1.9
6.8

8

6.8

1.6

6.8

FY2015f irst half
cumulativ ef orecast

FY2015second half
cumulativ ef orecast

47,882 37,794
2,721 1,040
2,667
985
1,547
580
92.0
-

34.5
-

Units less than one million yen rounded down

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

31

Business Forecasts by Segment
FY2014
ActualUnit: Million yen, %Human
ResourcesandEducationbusiness

Inf ormation &Telecommuni
cationsbusiness

4.1

－

－

6.2%

7.8%

8,430

830

9.8

4,712
401

24,92813,135816

15,212
1,179

Segment income

699

9,260
769

70

10.1

4,547
368

Profit margin

8.3%

8.3%

－

－

8.1%

8.5%

4,062

4,850
447

787

19.4

159

287

180.0

2,292
221

2,557
226

3.9%

9.2%

－

－

9.6%

8.9%

2,679

1,420

53.0

96

131.6

1,746
27

2,354
141

Segment income

Segment income

72

4,100
169

Profit margin

2.7%

2.7%

－

－

1.6%

6.0%

574

61

10.7

358
14

Segment income

18

636
18

0

2.8

278
3

Profit margin

3.2%

2.9%

－

－

1.4%

4.1%

15,54526,482
1,660

10,937

70.4

1,869
12.0%

6.3%

12,000170△ 11.2

19,2791,867

12,608

△ 209

7,203
△ 207

△2

△ 1.4

Net sales

Real estate business

Segment income

Information &Telecommunicatoin
business

Net sales

Profit margin

Segment income

172

Profit margin

1.4%

1.4%

68,82985,677△ 1,470
3,761

Net sales

Total

77

7.0%

Net salesRealEstatebusiness

13.7

7.7%

Profit margin

Other

3,418

1,918

Net sales

Sales & Marketingbusiness

Pct. Change

FY2015second half
cumulative
forecast

Profit margin

Net sales

R&D businessChangeFY2015f irst half
cumulativef orecast

28,347
1,996

Net sales

Technology business

YoY

Segment income

Net sales

Factory business

FY2015
forecast

Elimination or corporate

Operating income

Operating margin△ 1,162

3,748
5.4%

4.4%

－

△ 608
－

16,847

－

9.7%

△ 4.8

6,604
171

－

2.6%

24.5

47,882
△ 754
2,721

△ 320

12

0.3

－

－

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

－

5.7%

－

5,395
△1

－

37,794
△ 715
1,040

2.8%

32

Progress of the Medium-term Management Plan

Forecasts and中期経営計画予実推移results for the medium-term management plan
6,000

100,000

5,000

80,0004,000
60,0003,000
40,0002,000
20,000

Unit: Million yen 0

1,000

2012年
2012

2013年
2013

2014年
2014

2015年（予）2015
forecast

2016年（予）2016
forecast

Sales plan
売上計画

49,611

56,461

70,58384,940100,100

Results
実績

53,00756,45068,82985,677100,100

Operating income
plan

営業利益計画

1,361

1,878

2,720

3,695

5,019

実績
Results

1,223

2,120

3,748

3,761

5,019

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

033

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

25.0

23.7

20.0

15.0

10.0

10.0

5.0

8.5

4.5

4.5

4.5

2009年
2009

2010年
2010

2011年
2011

0.0
2012年
2012

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

2013年
2013

2014年
2014

34

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

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

35