Consolidated Financial Results for the Second Quarter of 2023
(Six Months Ended June 30, 2023)[Japanese GAAP]
August 7, 2023
Listing: Tokyo Stock Exchange
URL: http://www.world-hd.co.jp

Company name: WORLD HOLDINGS CO., LTD.
Stock code:
Representative:
Contact:

2429
Eikichi Iida, Chairman and President
Shigeru Nakano, Director, Business Management Division Manager
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
August 10, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Yes (for institutional investors and analysts)
Holding of quarterly financial results meeting:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Six Months of 2023 (January 1 to June 30, 2023)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%

Six months ended Jun. 30, 2023
90,461
86,208Six months ended Jun. 30, 2022
Note: Comprehensive income (millions of yen)

Million yen%

Million yen%

Million yen

%

2,013
2,549

(21.0)
34.8

4.9
3,685
(20.4)
3,645 (23.1)
32.5
4,629
88.8
4,740
80.8
Six months ended Jun. 30, 2023: 2,151 (down 20.8%)
Six months ended Jun. 30, 2022: 2,717 (up 35.4%)

Net income per share
Six months ended Jun. 30, 2023
Six months ended Jun. 30, 2022

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Diluted net income per share

Yen

Yen

114.79145.95114.27145.16(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

137,371
37,743As of Jun. 30, 2023
123,591
37,195
As of Dec. 31, 2022
Reference: Shareholders’ equity (millions of yen)
As of Jun. 30, 2023: 35,918

Yen

26.1
2,047.40
28.6
2,019.89
As of Dec. 31, 2022: 35,408

2. Dividends
Dividends per share
1Q-end2Q-endYen

3Q-endYear-end

Total

Yen

Yen

Yen

Yen

2022
0.00
2023
0.00
2023 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

-

91.50

91.50

-

103.50103.503. Consolidated Forecast for 2023 (January 1 to December 31, 2023)
Net sales
Million yen

Operating profit%

Million yen(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent

Ordinary profit%

Million yen%

Yen

Full year
201,354
9.6
9,916
11.1
9,453
5.8
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

6,045

13.2

344.84

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, ( 4) Notes to Quarterly
Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated
Financial Statements” on page 12 for further information.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly
Consolidated Financial Statements, Changes in Accounting Policies” on page 12 for further information.

(4) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Jun. 30, 2023:

17,657,300 shares

As of Dec. 31, 2022:

17,643,500 shares

As of Dec. 31, 2022:

113,573 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2023:

113,631 shares

3) Average number of shares during the period
Six months ended Jun. 30, 2023:

17,538,746 shares

Six months ended Jun. 30, 2022:

17,478,827 shares* The current financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements, and other special items
Cautionary statement with respect to forecasts
Forecasts of future performance in this document are based on assumption judged to be valid and information currently
available to the Company’s management, but are not promises by the Company regarding future performance. Actual results
may differ materially from the forecasts for a number of reasons. Please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward -looking Statements” onpage 5 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for quarterly financial results
The Company plans to hold a financial results meeting for institutional investors and analysts on Wednesday, August 9, 2023.
Supplementary materials to be distributed at this event will be disclosed on the same day, using the Timely Disclosure network(TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

5(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

5

2. Quarterly Consolidated Financial Statements and Notes

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income

8

Quarterly Consolidated Statement of Income
For the Six-month Period

8

Quarterly Consolidated Statement of Comprehensive Income
For the Six-month Period9(3) Quarterly Consolidated Statement of Cash Flows

10(4) Notes to Quarterly Consolidated Financial Statements

12

Going Concern Assumption

12

Significant Changes in Shareholders’ Equity

12

Changes in Significant Subsidiaries during the Period

12Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

12

Changes in Accounting Policies

12

Segment Information

13

Subsequent Events

14

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first half of 2023, the economy followed a gradual recovery trend, with economic and social activity
moving more rapidly towards normalization as the turmoil caused by the prolonged COVID crisis subsided.
However, factors such as soaring resource and raw material prices, labo r shortages, and rising living costs due to
inflation as well as a slowdown among the overseas economies had an adverse effect, and the outlook for theJapanese economy remained uncertain.
Under these circumstances, the World Holdings Group has made steady progress in preparing for both the Human
Resources and Education business and the Real Estate business, which are expected to have a significant
concentration of projects in the second half of the year. We have also responded appropriately to changes througha portfolio of multiple businesses and industries, resulting in sales and profits outperforming the initial plan.
Net sales increased 4.9% year on year to 90,461 million yen (up 1.9% vs. plan). Operating profit decreased 20.4%
to 3,685 million yen (up 47.0% vs. plan), ordinary profit decreased 23.1% to 3,645 million yen (up 49.8% vs.
plan), and profit attributable to owners of parent decreased 21.0% to 2,013 million yen (up 32.5% vs. plan).
All activities of the Group continue to be guided by the group’s purpose of “contributing to happiness and asustainable society through the creation of a variety of ways we live worldwide.” By promoting investment in
human capital and increasing its value, which is the group’s most important resource, we are determined to makeeven greater contributions to society while growing rapidly.
Business segment sales were as follows.
Products Human Resources BusinessIn the Products Human Resources business, orders for semiconductors, electrical and electronic components,
machinery-related, and other products followed a downward trend compared to the previous year due to theimpact of the overseas economic slowdown and other factors. However, both sales and profi ts outperformed theplan as the Company leveraged its strength across multiple industries and increased its support to various sectors,
including automotive-related industries.
Furthermore, in addition to welcoming a record number of new graduates in Apri l, we invested in securingpersonnel and training personnel to handle orders expected in the second half of the year and beyond. In
particular, in preparation for the expected growth of the semiconductor industry in the Kyushu region andelsewhere, the Company invested in strengthening its organizational structure with an eye to the future, including
the establishment of a system capable of training 1,000 semiconductor personnel, and also invested in digitaltransformation (DX) to reduce SG&A expenses and improve back-office productivity.
Moreover, as disclosed on April 20, 2023, we have successfully completed the acquisition of Nippon Gijutsu
Center Co., Ltd. We will leverage the strengths of Nippon Gijutsu Center to strengthen our technical field andfurther develop our contracting business, especially in the Kansai region.
As a result, sales were 47,946 million yen, up 16.4% year on year (up 7.2% vs. plan) and segment profit
decreased 13.2% to 1,650 million yen (up 35.1% vs. plan).
Services Human Resources Business
The Service Human Resources Business fell short of the plan following a decline due to the completion of special
demand projects in the first half of 2022 and prior investment in new business d evelopment, such as dispatch
order management agency services. In addition to opening new bases in the core logistics sector, we steadily
prepared for the second half of the fiscal year by responding to increased demand in the hospitality sales andtourism fields as the COVID pandemic subsided.
In addition, as disclosed on July 27, 2023, we have moved forward with preparations for a business alliance with
Yamato Holdings, Co., Ltd. and the acquisition of shares in Yamato Staff Supply Co., Ltd. Up until now, we havebeen engaged in transactions such as dispatch order management agency services between Yamato Transport Co.,

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

Ltd. and our group company World Staffing Co., Ltd., harnessing our expertise cultivated in the logistics field. In
adding Yamato Staff Supply Co., Ltd. to our group, we aim to create still greater opportunities for more people toplay an active role by harnessing our expertise in human resource management over a wide range of industries
and occupations.
Sales were 21,424 million yen, up 3.7% year on year (down 3.3% vs. plan) and segment profit decreased 77.4% to156 million yen (down 11.0% vs. plan).
Real Estate BusinessThis business is operating with caution because real estate prices in Japan remain high. The sale and deli very ofland for business use at the optimum time for sale exceeded the plan, especially in terms of profit.
In 2023, the delivery of numerous properties, including Residential Hara Branchera in Fukuoka City, Fukuoka
Prefecture and Residential Aoba Hirosegawa in Sendai City, Miyagi Prefecture, was concentrated in the second
half of the year, but both sales and deliveries are progressing approximately according to plan.
With regard to procurement, while maintaining a cautious approach to business expansion, we have leveraged ourexpertise in commercial land development, which is one of our strengths, to minimize risk while steadily securing
properties that will contribute into the next fiscal year and beyond.
Sales were 14,526 million yen, down 17.2% year on year (down 6.0% vs. plan), and segment profit were 1,264
million yen, down 20.4% year on year (up 104.5% vs. plan).
Information and Telecommunications BusinessIn the Information and Telecommunications Business, commission income declined due to a fall in the unit priceper user caused by the reduction of mobile phone usage fees and the revision of commission terms and conditions
by telecommunications carriers, and profits were lower than planned. The mobile phone sales agent industry
surrounding the business is undergoing a period of major transformation, and by leveraging the segment's priorstrengths in the corporate solutions sector and integrating its expertise in corporate problem -solving with its
mobile phone stores for individuals, the Group aims to enhance its presence and grow once more as a regional
problem-solving center for both individual and corporate customers.
Sales were 4,165 million yen, down 9.3% year on year (up 1.7% vs. plan), and segment profit were 15 million yen,down 79.9% year on year (down 68.4% vs. plan).
Agricultural Park BusinessIn the Agricultural Park Business, the number of visitors to the park struggled to grow due to poor weather in May,
the busiest season of the year, in addition to factors that pushed down profits, such as an increase in SG&A
expenses due mainly to soaring electricity rates. Nevertheless, following various initiatives, an increase in
spending per customer led to sales and profits outperforming the plan.
In addition, at the Comorebi Ibaraido Forest in Ibaraki Prefecture, environmentally friendly initiatives were
promoted by exploiting the strengths of its extensive outdoor facilities, including the introduction of new solar
power generation and battery storage facilities to reduce greenhouse gas emissions and electricity costs.
In April, we also began the new designated management of the Osaka Garden of Floral Culture in Kawachinagano
City, Osaka Prefecture. Building on our track record of facility revitalization, we plan to achieve further growthby increasing the number of designated management projects in various regions of Japan.
Sales were 2,398 million yen, up 8.7% year on year (up 4.3% vs. plan), and there was a segment profit were 122
million yen, down 33.5% year on year (up 14.7% vs. plan).

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

Overview of Business Results by Segment(Millions of yen)

Products
Human
Resources
Business
Human
ResourcesandEducation
Business

Services
Human
Resources
Business

Net sales
Segment
profit(Profitmargin)Net sales
Segment
profit(Profitmargin)Net sales

Segment
Subtotal
profit(Reference)(Profitmargin)Net sales
Real EstateBusiness

Real EstateBusiness

Segment
profit(Profitmargin)Information Information Net sales
andand
Segment
Telecommu- Telecommu- profit
nications
nications(ProfitBusiness
Businessmargin)Net sales
Agricultural Agricultural Segment
Park
Park
profitBusiness
Business(Profitmargin)Net sales

Total

Eliminationor corporate
Operatingprofit(Profitmargin)First half of First half of First half of
2022
2023
2023
ResultPlan
ResultVs. planAmountYear-on-year change%

Amount%41,20344,73547,946

3,210

7.2%

6,742

16.4%

1,901

1,222

1,650

428

35.1%

(250)

(13.2)%(4.6%)(2.7%)(3.4%)

20,651

22,15821,424(734)(3.3)%

772

3.7%

695

176

156

(19)

(11.0)%(538)(77.4)%(3.4%)(0.8%)(0.7%)

61,85566,894

69,370

2,476

3.7%

7,515

12.2%

2,597

1,398

1,807

409

29.2%

(789)

(30.4)%(4.2%)(2.1%)(2.6%)

17,551

15,445

14,526(919)(6.0)%(3,024)(17.2)%

1,587

618

1,264

646

104.5%(323)(20.4)%(9.0%)(4.0%)(8.7%)

4,594

4,096

4,165

69

1.7%

(428)

(9.3)%

76

48

15

(33)

(68.4)%(61)(79.9)%(1.7%)(1.2%)(0.4%)

2,207

2,300

2,398

98

4.3%

191

8.7%

184

107

122

15

14.7%

(61)

(33.5)%(8.4%)(4.7%)(5.1%)

86,20888,736

90,461

1,725

1.9%

4,253

4.9%

183

335

475

140

42.0%

292

159.5%

4,629

2,507

3,685

1,178

47.0%

(943)

(20.4)%(5.4%)(2.8%)(4.1%)

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

(2) Explanation of Financial Position
AssetsTotal assets increased 13,780 million yen from the end of 2022 to 137,371 million yen at the end of the second
quarter of 2023. This was mainly due to increases of 2,658 million yen in real estate for sale, 6,306 million yen inreal estate for sale in process and 4,269 million yen in goodwill.
Liabilities
Total liabilities increased 13,232 million yen from the end of 2022 to 99,627 million yen. This was mainly due toincreases of 5,266 million yen in short-term borrowings and 8,692 million yen in long-term borrowings.
Net assets
Net assets increased 547 million yen from the end of 2022 to 37,743 million yen, mainly due to increases of 409
million yen in retained earnings and 44 million yen in non-controlling interests.
Cash Flows
Cash and cash equivalents at the end of the first half of 2023 decreased 2,544 million yen from the end of 2022 to
32,533 million yen.
Cash flows from operating activities
Net cash used in operating activities was 9,530 million yen. Main positive factors include profit before income
taxes of 3,644 million yen. Major negative factors include an 8,964 million yen increase in real estate for sale, a
1,264 million yen decrease in accrued consumption taxes and income taxes paid of 2,427 million yen.
Cash flows from investing activities
Net cash used in investing activities was 5,365 million yen. Main negative factors include payments of 349
million yen for purchase of property, plant and equipment and 4, 822 million yen for purchase of shares ofsubsidiaries resulting in change in scope of consolidation.
Cash flows from financing activities
Net cash provided by financing activities was 12,315 million yen. Main positive factors include net increase in
short-term borrowings of 2,880 million yen and proceeds of 13,424 million yen from long-term borrowings. Main
negative factors include repayments of long-term borrowings of 2,358 million yen and dividends paid of 1,603
million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
In the core Human Resources and Education Business, the Group formulated a plan assuming a weak
performance in the semiconductor and electronic components industries in light of the global economic slowdown.
However, we exceeded initial projections by successfully managing a variety of sectors, including automobiles,
through a strategic portfolio that spans multiple industries. Moreover, i n the real estate business, by seizing the
optimal timing for sales and delivery of commercial land and other assets, the performance exceeded initial plans,leading to significant variations, especially in profits, across the group as a whole.
World Holdings maintains its full-year consolidated forecasts that were announced in the “Consolidated Financial
Results for 2022” on February 14, 2023.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of 2023
(As of Jun. 30, 2023)

2022(As of Dec. 31, 2022)
AssetsCurrent assets
Cash and deposits

35,091

32,533

Notes and accounts receivable-trade

18,80919,333833

1,482

Real estate for sale

6,506

9,165

Work in process

113

180

Real estate for sale in process

43,09949,405

Other

3,811

5,024

(6)

(9)

108,257

117,115

6,032

6,135

4,059

8,328

192

200

4,252

8,528

Investment securities

1,229

1,329

Deferred tax assets

2,047

2,187

Leasehold and guarantee deposits

1,191

1,458

Merchandise and finished goods

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Other

932

968

Allowance for doubtful accounts

(352)

(350)

Total investments and other assets

5,049

5,592

Total non-current assets
Total assets

15,333

20,256

123,591

137,371

1,225

1,161

Liabilities
Current liabilities
Notes and accounts payable-trade
Accounts payable-real estate business

269

516

Short-term borrowings

30,79836,064

Accrued expenses

10,798

10,893

Advances received

1,167

1,110

Income taxes payable

2,580

1,769

Accrued consumption taxes

3,307

2,295

Provision for bonuses

225

667

Other

5,115

4,987

Total current liabilities

55,48959,467Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability

25,14933,842

198

185

3,297

3,755

Other

2,260

2,376

Total non-current liabilities

30,90540,16086,395

99,627

Non-current liabilities

Total liabilities

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

(Millions of yen)
Second quarter of 2023
(As of Jun. 30, 2023)

2022(As of Dec. 31, 2022)
Net assets
Shareholders’ equity
Share capital

1,314

1,327

Capital surplus

1,504

1,517

Retained earnings

32,86233,271

Treasury shares

(119)

(119)

Total shareholders’ equity

35,56135,996

Valuation difference on available-for-sale securities

14

40

Foreign currency translation adjustment

40

65

Remeasurements of defined benefit plans

(207)

(182)

Total accumulated other comprehensive income

(153)

(77)

76

70

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests

1,710

1,754

Total net assets

37,19537,743

123,591

137,371

Total liabilities and net assets

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)(Millions of yen)First six months of 2023
(Jan. 1 – Jun. 30, 2023)

First six months of 2022
(Jan. 1 – Jun. 30, 2022)
Net sales

86,20890,461

Cost of sales

71,10574,675Gross profit

15,103

15,786

Selling, general and administrative expenses

10,473

12,100Operating profit

4,629

3,685

Interest and dividend income

647

Subsidy income
Income of support to investment in property andequipment
Other

75

19

3

-

145

75

Total non-operating income

230

142

97

140

Non-operating income

Non-operating expenses
Interest expenses
Other

21

42

Total non-operating expenses

119

182

4,740

3,645

Loss on disaster-1

Total extraordinary losses-

1

Profit before income taxes

4,740

3,644

Income taxes

2,065

1,578

Profit

2,675

2,066

Ordinary profit
Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

8

125

53

2,549

2,013

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Millions of yen)First six months of 2023
(Jan. 1 – Jun. 30, 2023)

First six months of 2022
(Jan. 1 – Jun. 30, 2022)
Profit

2,675

2,066

(9)

26

Foreign currency translation adjustment

55

33

Remeasurements of defined benefit plans, net of tax

(3)

24

Total other comprehensive income

42

84

2,717

2,151

2,573

2,089

144

62

Other comprehensive income
Valuation difference on available-for-sale securities

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

(3) Quarterly Consolidated Statement of Cash Flows(Millions of yen)First six months of 2023
(Jan. 1 – Jun. 30, 2023)

First six months of 2022
(Jan. 1 – Jun. 30, 2022)
Cash flows from operating activities
Profit before income taxes

4,740

3,644

Depreciation

418

453

Amortization of goodwill

161

303

0

(0)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability

5

(12)

188

319

Interest and dividend income

(6)

(47)

Interest expenses

97

140

Loss on retirement of property, plant and equipment

140Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in real estate for sale
Increase (decrease) in trade payables

338

378

(243)

(667)

(4,182)(8,964)

(438)

154

Increase (decrease) in advances received

600

(60)

Increase (decrease) in accrued expenses

1,788

(349)

Increase (decrease) in accrued consumption taxes(395)(1,264)(3,176)(335)

Other, net

(650)

(844)

Subtotal(739)(7,150)747

Increase (decrease) in other current liabilities

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities

(93)

(144)

(1,411)(2,427)472

144(1,763)(9,530)Cash flows from investing activities
Payments into time deposits(1)-

Proceeds from withdrawal of time deposits

1

13

Purchase of property, plant and equipment(1,145)

(349)

(14)

(69)

Purchase of intangible assets
Proceeds of investments in consolidated subsidiary-

14

Purchase of investments in consolidated subsidiary(4,165)(4,822)

(30)

(15)

-

(42)

Loan advances

(100)

(65)

Proceeds from collection of loans receivable
Net decrease (increase) in lease and guarantee deposits

3

-

(28)

(6)

Purchase of investments in non-consolidated subsidiary
Payments for acquisition of businesses

Other, net
Net cash provided by (used in) investing activities

10

(8)

(21)

(5,489)(5,365)

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

(Millions of yen)First six months of 2023
(Jan. 1 – Jun. 30, 2023)

First six months of 2022
(Jan. 1 – Jun. 30, 2022)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
Proceeds from long-term borrowings
Repayments of long-term borrowings(3,762)

2,880

-

(13)

14,184

13,424(675)(2,358)

Repayments of lease obligations

(2)

(4)

Proceeds from issuance of shares

23

18

Purchase of treasury shares-

0

Dividends paid

(1,388)(1,603)

Repayments to non-controlling shareholders

(34)

(27)

Net cash provided by (used in) financing activities

8,344

12,315

Effect of exchange rate change on cash and cash equivalents

49

35

Net increase (decrease) in cash and cash equivalents

1,140(2,544)

Cash and cash equivalents at beginning of period

30,74835,078Cash and cash equivalents at end of period

31,88932,53311

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Significant Subsidiaries during the Period
Toen Planning Co., Ltd., which is not a specified subsidiary, became a consolidated subsidiary in 2022. In thefirst quarter of 2023, Toen Planning Co., Ltd. was removed from the scope of consolidation because this company
was absorbed by World Residential Co., Ltd. on March 1, 2023 and subsequently dissolved.
Koresato Winery, which is not a specified subsidiary, became a consolidated subsidiary in the second quarter of2023. During this period, on April 1, 2023, the Company subscribed to a third -party allotment of new shares in
Koresato Winery, Co., Ltd. and included the company in the scope of its consolidation.
While not applicable to the transfer of a specified subsidiary, on May 22, 2023, during the second quarter of 2023,
we also acquired shares in Nippon Gijutsu Center Co., Ltd. Accordingly, both Nippon Gijutsu Center Co., Ltd.
and its subsidiary Techno Link Co., Ltd. have been included in the scope of consolidation.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
The tax expenses are calculated by first reasonably estimating the effective tax rate after the application of tax
effect accounting with respect to profit before income taxes for the fiscal year in which the quarter u nder review
falls, and multiplying that rate by the profit before income taxes for the quarter under review. However, World
Holdings uses legally stipulated effective tax rates to calculate tax expenses when the use of estimated tax rates
produces a clearly irrational result.
Changes in Accounting Policies
Application of Guidance on the Accounting Standard for Fair Value Measurement
World Holdings has applied Guidance on the Accounting Standard for Fair Value Measurement ( AccountingStandards Board of Japan (ASBJ) Statement No. 31, June 17, 2021) from the beginning of the first quarter of2023, and has applied the new accounting policies set forth by Guidance on the Accounting Standard for Fair
Value Measurement prospectively in accordance with the transitional treatment in the paragraph 27-2 of thisguidance.
There is no effect of the application of this guidance on the quarterly consolidated financial statements.

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WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

Segment Information
I. First six months of 2022 (Jan. 1 – Jun. 30, 2022)
1. Information related to net sales and profit or loss for each reportable segment
Reportable segment(Millions of yen)Amounts shownon quarterly
Adjustments
consolidated(Note 1)statement ofincome(Note 2)

Products
Human
Resources
Business

Services
Human
Resources
Business

Real EstateBusiness

Information
andTelecommunications
Business

Agricultural
Park
Business

41,203

20,651

17,551

4,594

2,207

86,208-86,208

274

90

67

27

7

468

(468)

-

Total

41,47820,742

17,619

4,621

2,215

86,676(468)

86,208Segment profit

1,901

695

1,587

76

184

4,446

183

4,629

Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers

Total

Notes: 1. The 183 million yen adjustment to segment profit includes elimination for inter-segment transactions of -166
million yen, and 349 million yen in corporate expenses that cannot be allocated to any of the reportable segments.
Corporate expenses mainly consist of general and administrative expenses that are not attr ibutable to any of thereportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated statement ofincome.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Goodwill was booked in the “Products Human Resources Business” segment as World Holdings has acquired
the shares of Creative Inc. and made it a consolidated subsidiary. The event caused the amount of goodwill toincrease by 691 million yen during the first six months of 2022.
Significant gain on bargain purchaseNot applicable.
II. First six months of 2023 (Jan. 1 – Jun. 30, 2023)
1. Information related to net sales and profit or loss for each reportable segment
Reportable segment(Millions of yen)Amounts shownon quarterly
Adjustments
consolidated(Note 1)statement ofincome(Note 2)

Products
Human
Resources
Business

Services
Human
Resources
Business

Real EstateBusiness

Information
andTelecommunications
Business

Agricultural
Park
Business

47,94621,424

14,526

4,165

2,398

90,461-

90,461

312

88

10

28

6

446

(446)

-

Total

48,25821,512

14,537

4,194

2,405

90,908(446)

90,461

Segment profit

1,650

156

1,264

15

122

3,210

475

3,685

Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers

Total

Notes: 1. The 475 million yen adjustment to segment profit includes elimination for inter-segment transactions of -11 million
yen, and 486 million yen in corporate expenses that cannot be allocated to any of the reportable segments.
Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of thereportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated statement ofincome.

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WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Goodwill was booked in the “Products Human Resources Business” segment as World Holdings has acquired
the all shares of Nippon Gijutsu Center Co., Ltd., and Nippon Gijutsu Center and its subsidiary are includedin the scope of consolidation. The event caused the amount of goodwill to increase by 4,545 million yen
during the first six months of 2023.
Significant gain on bargain purchaseNot applicable.
Subsequent Events
Combining businesses through acquisition
At a meeting of the Board of Directors held on July 27, 2023, we resolved to enter into a strategic businessalliance with Yamato Holdings Co., Ltd. (hereinafter referred to as YHD). In addition, our consolidated
subsidiary World Staffing Co., Ltd . (hereinafter referred to as WSF), decided to acquire 51% of issued shares in
Yamato Staff Supply Co., Ltd. (hereinafter referred to as YSS), a wholly-owned subsidiary of YHD, and to makeit a subsidiary, concluding a share transfer agreement on July 27, 2023. Subsequently, the Company plans toacquire the shares on September 1, 2023.
(1) Reason for the acquisition
In the core Human Resources and Education Business of World Holdings, we are developing a wide range ofhuman resources businesses from manufacturing to services. Among them, the logistics field conducted by WSF,
our core operating company in the service domain, has grown significantly as one of our major businesses to date,transcending the human resources business and leveraging our strength in bulk logistics warehouse contracting
based on a consortium model.
YHD is committed to achieving sustainable business growth through its contribution to “realizing an affluent
society” as a member responsible for social infrastructure. To achieve this, YHD is aiming to enhance the value it
provides to the end-to-end supply chain and working on structural reforms to business.
The environment surrounding Japan’s logistics industry is subject to various trends, including changes in
consumer behavior and distribution structures such as the shift towards and expansion of e -commerce, labor
shortages due to the falling birthrate and aging population, and a diversification of work styles. In this context,
the aim of the strategic partnership between the Company and YHD is to collaborate and effectively leverage bothcompanies’ management resources. This will help maintain revenue opportunities, ensure future competitiveness,create more "ways for people to be active," and contribute to the sustainable development of Japanese society as
well as the "realization of an affluent society."
As part of the business alliance, YSS, which operates the human resources business in YHD, will become aconsolidated subsidiary of the Company, with WSF acquiring 51% of the issued shares. By leveraging theexpertise in human resources management that the Company possesses over a wide range of industries andoccupations, the Company will create opportunities for more people to play a still more active role. We willcontinue to effectively utilize the management resources of both companies and engage in discussions to maintainrevenue opportunities and ensure future competitiveness.
(2) Name of seller
Yamato Holdings Co., Ltd.

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WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2023

(3) Profile of the company to be acquired
Name:

YAMATO.STAFF.SUPPLY.CO.,LTD.

Business: Human resources, light cargo, education, outsourcing businesses
Capital: 150 million yen(4) Stock acquisition date
September 1, 2023 (tentative)(5) Number of shares to be acquired, acquisition cost, number of shares to be held after acquisition
Number of shares to be acquired:
Acquisition cost:

1,555 shares

The decision to refrain from disclosure is based on discussions between the two companies,
and made in light of the results of a third-party calculation of the share value.

Number of shares to be held after acquisition:

51%(6) Method for procuring funds for payments on the stock acquisition
Plan to raise funds through borrowing from financial institutions
This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

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