Consolidated Financial Results for the Second Quarter of 2021
(Six Months Ended June 30, 2021)[Japanese GAAP]
August 6, 2021
Listing: Tokyo Stock Exchange, First Section
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, 2021
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 2021 (January 1 to June 30, 2021)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%

Six months ended Jun. 30, 2021
65,047Six months ended Jun. 30, 2020
70,844
Note: Comprehensive income (millions of yen)

Million yen%

Million yen

(8.2)
2,452
(11.6)
6.0
2,773
9.6
Six months ended Jun. 30, 2021:
Six months ended Jun. 30, 2020:

Net income per share
Six months ended Jun. 30, 2021
Six months ended Jun. 30, 2020

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

%

2,621
(8.7)
1,891
2,872
13.6
2,497
2,007 (down 22.9%)
2,603 (up 51.0%)%(24.3)
48.2

Diluted net income per share

Yen

Yen

108.37145.25

107.65144.61(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

As of Jun. 30, 2021
88,27630,286
As of Dec. 31, 2020
79,15730,061
Reference: Shareholders’ equity (millions of yen)
As of Jun. 30, 2021: 28,715

Yen

32.5
1,644.98
36.1
1,638.03
As of Dec. 31, 2020: 28,589

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

3Q-endYear-end

Total

Yen

Yen

Yen

Yen

2020
0.00
2021
0.00
2021 (forecast)
Note: Revisions to the most recently announced dividend forecast: None-

101.70101.70

-

78.70

78.70

3. Consolidated Forecast for 2021 (January 1 to December 31, 2021)
Net sales
Million yen

Operating profit%

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

Ordinary profit%

Million yen%

Yen

Full year
150,194
4.6
6,465
3.4
6,388
(5.9)
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

4,573(22.7)

262.02

* 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: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(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, 2021:

17,569,900 shares

As of Dec. 31, 2020:

17,566,900 shares

As of Dec. 31, 2020:

113,477 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2021:

113,498 shares

3) Average number of shares during the period
Six months ended Jun. 30, 2021:

17,453,917 shares

Six months ended Jun. 30, 2020:

17,194,280 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 18, 2021.
Supplementary materials for the quarterly financial results will be disclosed on August 18, 2021, 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 2021

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

Segment Information

12

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
The Japanese economy remained under pressure during the first half of 2021 because of a state of emergency andother actions to prevent the spread of COVID-19. Nevertheless, the economy is recovering slowly because of
progress with vaccinations, economic recoveries in other countries and an upturn in consumer spending. In
Japan’s manufacturing sector, which is an important market of the World Holdings Group, a significant recover yis under way due mainly to the growth of exports of automobiles, semiconductors a nd other products. There are
big variations in the strength of this recovery in different industries and regions of Japan. Furthermore, anotherwave of COVID-19 infections has started, chiefly in Tokyo. As a result, the outlook for the economy remains
uncertain.
The Human Resources and Education Business, the core business of the World Holdings Group, was the primarysource of growth during the first half with sales and operating profit that surpassed the plan for the first half. In
addition, an increase in the seamless cooperation among all staffing business segments resulted steady growth ofthe performance of these segments. There are also activities for cooperation between the Human Resources andEducation Business and the Real Estate Business with the goal of creating new synergies within the World
Holdings Group.
Net sales decreased 8.2% year on year to 65,047 million yen. Operating profit decreased 11.6% to 2,452 million
yen, ordinary profit decreased 8.7% to 2,621 million yen, and profit attributable to owners of parent decreased
24.3% to 1,891 million yen.
Factory Staffing BusinessThis business posted growth in the major semiconductor and semiconductor manufacturing equipment categories
because of the recovery in demand involving 5G and automobiles. The logistics sector, which is a key strength of
this business, also contributed to the growth of sales and earnings. Progress is continuing with operations at alogistics base newly established at the end of 2020. All other market categories also performed well as theJapanese economy recovers from the COVID-19 downturn. In 2020, our highest priority was maintaining
employment of our people in all factory staffing categories during the COVID-19 crisis. We also focused on
training programs and other activities to upgrade the ability of our workforce to perform factory tasks. Due tothese actions during 2020, this business was able to respond with speed and flexibility to many types of orders. In
addition, an increase in production volume for all subcontracted work performed at client companies contributed
to sales and earnings. Recruiting activities continues to be difficult because of the recoveries under way inindustries that are the main markets for this business. To increase the efficiency of recruiting activities and attract
people with strong skills, we are improving the recruiting methods used by our Job Paper website and otherchannels.
As a result, sales were 33,102 million yen, up 31.8% year on year and segment profit increased 73.7% to 1,662
million yen.
Technology Staffing BusinessAll categories of this business are recovering from the COVID-19 downturn. There is steady growth in the key
automobile, information and telecommunications, and construction engineering categories. In addition, seam lesscooperation with the Factory Staffing Business contributed to growth in the semiconductor category. As
industries that are the main markets for this business recover, recruiting skilled engineers is becoming even moredifficult. We are reexamining methods used for recruiting and training our engineers to enable them to upgradeskills and advance their careers. For example, to meet the growing demand for skills involving the digitaltransformation and internet of things, there are training programs for control technologies and for Amazon Web
Services system engineers. Our objective is to provide client companies with engineering services of an evenhigher quality.
Sales were 8,538 million yen, up 2.2% year on year and segment profit increased 7.6% to 954 million yen.

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

R&D Staffing BusinessIn the core research personal staffing sector, all categories performed well, including biotechnology, chemicals
and analytics in the medical field. The performance of this business also benefited from demand involving PCR
tests, vaccine development and other activities concerning the pandemic. In addition, pandemic -related demandassociated with the Tokyo Olympics for the staffing services of this business contributed to the growth of sales
and earnings. To establish a base for more growth in 2022, we are providing technologies for activities even moreclosely linked to the core businesses of clients. We are also extending this business to more market sectors.
Recruiting activities have progressed generally as planned. As we fully utilize our training programs, which are avaluable strength of this business, we are aiming to establish a reputation in client industries as a source of highly
skilled research personnel.
Sales were 3,915 million yen, up 11.4% year on year, and segment profit increased 17.3% to 447 million yen.
Sales & Marketing Staffing BusinessAlthough the pandemic is still having an impact on the tourism sector, the office and call center categories
continue to grow. Performance was also supported by demand involving the pandemic, such as for people whowork at locations where people receive vaccines. The Tokyo Olympics also created additional demand for theservices of this business. As a result, sales and earnings were higher than planned. There were ma ny activities for
expanding the range of operations in this business, such as by establishing a new call center and shifting staffing
service contracts to subcontracting agreements for light-duty tasks and salespeople at stores. These activities are
aimed at setting the stage for more growth starting in 2022.
Sales were 2,445 million yen, up 25.9% year on year, and there was a segment loss of 27 million yen, comparedwith a segment profit of 3 million yen in the first half of 2020.
Real Estate BusinessWe are operating this business cautiously because prices of real estate in Japan are still high. In the core realestate development category, we are using our commercial property development skills to purchase quality
properties and take other actions for growth starting in 2022. Sales and earnings in this business were far below
one year earlier because of sales of large properties in the first half of 2020. Despite these declines, theperformance of this business is as planned because a large percentage of the property sales in 2021 are planned
for the fourth quarter.
World Residential Co., Ltd., the core real estate company of the World Holdings Group, World Staffing Co., Ltd.,
which operates the Human Resources and Education Business, and Tokyu Land Corp oration have established acomprehensive business alliance concerning logistics facilities. This alliance is one step for taking the operationsof the Real Estate Business in a new direction. In prior years, real estate and human resources activities of th e
World Holdings Group have grown while operating separately. By enabling these two sectors to start joint
activities, we plan to create new synergies within the group.
Sales were 10,481 million yen, down 59.0% year on year, and segment profit decreased 78.2% to 400 million yen.
Information and Telecommunications Business
The mobile phone shop business, which is related to this segment, is facing challenges due to another phase ofsignificant changes in Japan’s mobile phone industry. All mobile phone car riers are offering new rate plans, suchas service plans for only internet access, in response to the Ministry of Internal Affairs and Communications’request to lower the cost of using a mobile phone. To overcome these challenges, this business is making
investments for implementing new marketing activities, training store personnel, and other measures to establish
a network of highly competitive shops. These expenditures caused a temporary decline in earnings both comparedto the plan and the same period a year earlier. Our goal remains to establish a network of stores rooted in the local
community and receive benefits as one of the survivors in the mobile phone shop market in order to resume thegrowth of this business.
Sales were 4,944 million yen, down 5.9% year on year, and segment profit decreased 65.9% to 93 million yen.

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

OthersPerformance of agricultural parks recovered steadily from the COVID -19 shock. Harvest Hill, Sakai Green
Museum, the flagship facility in Osaka Prefecture, was forced to close temporarily a second time during thebusiest period in spring due to the declaration of a state of emergency. As parks are well recognized as outdoor
facilities that people can enjoy while avoiding close contact with others, we implemented appropriate mark eting
activities that utilize this strength of agricultural parks to improve their presence as relaxing facilities necessary
for the community.
Sales were 1,619 million yen, up 43.7% year on year, and there was a segment loss of 83 million yen, comparedwith a segment loss of 369 million yen in the first half of 2020.
Overview of Business Results by Segment(Millions of yen)

Human
ResourcesandEducation
Business

Factory
Staffing
Business

Net sales

Year-on-year change
Vs. planAmount%25,11130,914

33,102

2,187

7,991

31.8

Segment profit

957

1,229

1,662

433

705

73.7

(Profit margin)(3.8%)(4.0%)(5.0%)

Technology
Staffing
Business

Net sales

R&D
Staffing
Business

Net sales

Sales &
MarketingStaffing
Business

Net sales

Subtotal(Reference)

Real EstateBusiness

First half of First half of First half of
2020
2021
2021
ResultPlan
ResultReal EstateBusiness

Information
andTelecommunications
Business

Information
andTelecommunications
Business

OthersOther
Business

Total

8,353

8,481

8,538

57

184

2.2

Segment profit

886

624

954

330

67

7.6

(Profit margin)(10.6%)(7.4%)(11.2%)

3,515

3,759

3,915

155

399

11.4

Segment profit

381

331

447

115

65

17.3

(Profit margin)(10.8%)(8.8%)(11.4%)

1,941

2,010

2,445

435

503

25.9

Segment profit

3

(78)

(27)

51

(30)

-

(Profit margin)(0.2%)--Net sales

38,92245,16648,002

2,835

9,079

23.3

930

807

36.3

Segment profit

2,228

2,106

3,036

(Profit margin)(5.7%)(4.7%)(6.3%)Net sales

25,541

11,66910,481(1,187)(15,060)(59.0)

302(1,435)(78.2)

Segment profit

1,835

98

400

(Profit margin)(7.2%)(0.8%)(3.8%)Net sales

5,252

4,734

4,944

210

(308)

(5.9)

Segment profit

275

200

93

(106)

(181)

(65.9)(Profit margin)(5.2%)(4.2%)(1.9%)Net sales

1,126

2,087

1,619

(468)

492

43.7

Segment profit

(369)

100

(83)

(183)

286

-

(Profit margin)-(4.8%)-Net sales

70,84463,65765,047

1,390(5,796)(8.2)

Elimination or
corporate(1,196)(1,202)

(994)

207

201

-

1,149

(321)

(11.6)

Operating profit

2,773

1,302

2,452

(Profit margin)(3.9%)(2.0%)(3.8%)

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

(2) Explanation of Financial Position
AssetsTotal assets increased 9,119 million yen from the end of 2020 to 88,276 million yen at the end of the second
quarter of 2021. This was mainly due to increases of 980 million yen in cash and deposits, 807 million yen innotes and accounts receivable-trade, 1,927 million yen in real estate for sale, 4,677 million yen in real estate forsale in process and 576 million yen in goodwill.
Liabilities
Total liabilities increased 8,894 million yen from the end of 2020 to 57,990 million yen. This was mainly due toan increase of 530 million yen in short-term borrowings, a decrease of 491 million yen in accrued expenses, adecrease of 1,232 million yen in accrued consumption taxes and an increase of 9,208 million yen in long-termborrowings.
Net assets
Net assets increased 224 million yen from the end of 2020 to 30,286 million yen mainly due to increases of 69
million yen in retained earnings and 76 million yen in non-controlling interests.
Cash Flows
Cash and cash equivalents at the end of the first half of 202 1 increased 979 million yen from the end of 2020 to
23,796 million yen.
Cash flows from operating activities
Net cash used in operating activities was 5,993 million yen. Main positive factors include profit before income
taxes of 2,664 million yen and a 153 million yen increase in advances received. Major negative factors include a
369 million yen increase in trade receivables, a 6,612 million yen increase in real estate for sale and a 1,433
million yen decrease in accrued consumption taxes.
Cash flows from investing activities
Net cash used in investing activities was 1,040 million yen. Main negative factors include payments of 285
million yen for purchase of property, plant and equipment, 353 million yen for purchase of investments in newconsolidated subsidiary and 104 million yen for purchase of investments in non-consolidated subsidiary.
Cash flows from financing activities
Net cash provided by financing activities was 7,788 million yen. Main positive factors include net increase of
1,457 million yen in short-term borrowings and proceeds of 10,102 million yen from long -term borrowings. Main
negative factors include repayments of long-term borrowings of 1,962 million yen and dividends paid of 1,775
million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
World Holdings maintains its full-year consolidated forecasts that were announced in the “Consolidated Financial
Results for 2020” on February 8, 2021.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of 2021
(As of Jun. 30, 2021)

2020(As of Dec. 31, 2020)
AssetsCurrent assets
Cash and deposits

22,817

23,797

Notes and accounts receivable-trade

12,817

13,624639

918

Real estate for sale

5,748

7,675

Work in process

123

114

Real estate for sale in process

22,146

26,824

Other

3,842

3,290

(2)

(4)

68,132

76,239

5,297

5,268

Goodwill

104

681

Other

186

219

Total intangible assets

291

900

Investment securities

1,550

1,683

Deferred tax assets

Merchandise and finished goods

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets

Investments and other assets
2,398

2,543

Leasehold and guarantee deposits

903

1,005

Other

808

860

Allowance for doubtful accounts

(224)

(224)

Total investments and other assets

5,436

5,868

11,024

12,036

79,15788,276

1,072

1,310

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Accounts payable-real estate business

527

120

Short-term borrowings

17,204

17,735

Accrued expenses

6,746

6,255

Advances received

552

706

Income taxes payable

1,049

1,128

Accrued consumption taxes

3,110

1,877

124

174

Provision for bonuses
Other

4,248

4,682

Total current liabilities

34,63733,991

12,073

21,282

172

178

1,921

2,171

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

6

291

365

14,45823,99849,09557,990WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

(Millions of yen)
Second quarter of 2021
(As of Jun. 30, 2021)

2020(As of Dec. 31, 2020)
Net assets
Shareholders’ equity
Share capital

1,244

1,246

Capital surplus

1,443

1,445

Retained earnings

26,054

26,124

Treasury shares

(119)

(119)

Total shareholders’ equity

28,623

28,697

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

(15)

20

Foreign currency translation adjustment

1

16

Remeasurements of defined benefit plans

(20)

(18)

Total accumulated other comprehensive income

(34)

18

49

71

Share acquisition rights
Non-controlling interests

1,422

1,498

Total net assets

30,06130,286

79,15788,276

Total liabilities and net assets

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

(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 2021
(Jan. 1 – Jun. 30, 2021)

First six months of 2020
(Jan. 1 – Jun. 30, 2020)
Net sales
Cost of sales

70,84458,88065,04753,947Gross profit

11,963

11,100

Selling, general and administrative expenses

9,189

8,648

Operating profit

2,773

2,452

30

168

48

2

122

96

201

267

85
17

80
17

103

97

2,872

2,621

4
175
-

1
42

180

43

1

-

Non-operating income
Subsidy income
Income of support to investment in property andequipment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Disaster insurance income
Gain on sales of shares of subsidiaries and associates
Gain on extinguishment of tie-in shares
Total extraordinary income
Extraordinary losses
Loss on disaster
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8

1

-

3,051

2,664

433

718

2,618

1,946

121

55

2,497

1,891

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Millions of yen)First six months of 2021
(Jan. 1 – Jun. 30, 2021)

First six months of 2020
(Jan. 1 – Jun. 30, 2020)
Profit

2,618

1,946

Valuation difference on available-for-sale securities

(14)

35

Foreign currency translation adjustment

(2)

23

2

1

(15)

60

2,603

2,007

2,483

1,944

119

63

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
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 2021

(3) Quarterly Consolidated Statement of Cash Flows(Millions of yen)First six months of 2021
(Jan. 1 – Jun. 30, 2021)

First six months of 2020
(Jan. 1 – Jun. 30, 2020)
Cash flows from operating activities
Profit before income taxes

3,051

2,664

403

393

Amortization of goodwill

87

26

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

(2)

1

2

(3)

111

170

(8)

(9)

(175)

-

-

(42)

85

80

Depreciation

Interest and dividend income
Loss (gain) on sales of shares of subsidiaries andassociates
Loss (gain) on extinguishment of tie-in sharesInterest expenses
Loss on retirement of property, plant and equipment
Decrease (increase) in trade receivables

4

7

875

(369)

Decrease (increase) in inventories

(221)

(273)

Decrease (increase) in real estate for sale

7,579

(6,612)

Increase (decrease) in trade payables

(259)

(267)

Increase (decrease) in advances received(8,327)

153

Increase (decrease) in accrued expenses

335

(682)

548

(1,433)(1,166)

227

Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Other, net

291

275

Subtotal

3,217(5,695)Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund

7

9

(86)

(83)

(1,074)(1,134)

736

910

2,799

(5,993)

Proceeds from withdrawal of time deposits

21-

Purchase of property, plant and equipment

(535)

(285)

Purchase of intangible assets

(17)

(57)

-

(353)

Purchase of investments in non-consolidated subsidiary(1,230)(104)

Payments for acquisition of businesses
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Loan advances

-

(65)

2,029

-

(69)

(150)

-

150

Net cash provided by (used in) operating activities
Cash flows from investing activities

Purchase of investments in consolidated subsidiary

Collection of loans receivable
Net decrease (increase) in lease and guarantee deposits

(5)

(72)

Other, net

52

(101)

Net cash provided by (used in) investing activities

246(1,040)10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

(Millions of yen)First six months of 2021
(Jan. 1 – Jun. 30, 2021)

First six months of 2020
(Jan. 1 – Jun. 30, 2020)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings(1,224)

1,457

Proceeds from long-term borrowings

2,962

10,102

Repayments of long-term borrowings(3,480)(1,962)

Repayments of lease obligations

(1)

(1)

Proceeds from issuance of shares
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares

701

2

150

-

-

(0)

(887)

(1,775)(2)(35)(1,783)

7,788

Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(3)

21

Net increase (decrease) in cash and cash equivalents

1,258

775

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries

16,513

22,817

157

111

-

92

Cash and cash equivalents at end of period

17,92923,796

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

(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
TOHOWORLD Corporation, which was a non-consolidated subsidiary in 2020, is included in the consolidated
financial statements starting in the first quarter of 2021 because of the increasing significance of this company.
This change is not deemed as a change in a significant subsidiary.
Creation View Co., Ltd. became a consolidated subsidiary in the second quarter of 2021 following the acquisitionof its shares by World Holdings on May 28, 2021. This change is not deemed as a change in a significant
subsidiary.
IMAGINEPLUS Co., Ltd., which was a non-consolidated subsidiary in the first quarter of 2021, was dissolved
because of its absorption and merger with consolidated subsidiary Worl d Staffing Co., Ltd. on June 1, 2021. Thischange is not deemed as a change in a significant subsidiary.
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 under 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.
Segment Information
I. First six months of 2020 (Jan. 1 – Jun. 30, 2020)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Others
Factory Technology
R&D
Real
and
MarketingStaffing
Staffing
Staffing
Estate Telecommuni- Subtotal (Note 1)
Staffing
Business Business BusinessBusinesscations
Business
Business

Total

Amounts
shown onAdjustquarterly
ments consolidated(Note 2) statement ofincome(Note 3)

Net sales
Sales toexternal
25,1118,353
3,515
1,941 25,541
5,252
69,717 1,126 70,844
70,844
customers
Inter-segment
sales and
237
92
30
12
373
58
431
(431)
transfers
Total
25,1118,591
3,515
2,034 25,571
5,265
70,090 1,184 71,275(431)
70,844
Segment
957
886
381
3
1,835
275
4,339 (369)
3,970 (1,196)
2,773
profit (loss)
Notes: 1. “Others” represent businesses not included in reportable segments and include the operation and management ofagricultural parks, the operation of personal computer schools, the production of websites and other services.
2. The -1,196 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 27
million yen, and -1,224 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable to anyof the reportable segments.
3. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

12

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2021

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
Not applicable.
Significant gain on bargain purchaseNot applicable.
II. First six months of 2021 (Jan. 1 – Jun. 30, 2021)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Others
Factory Technology
R&D
Real
and
MarketingStaffing
Staffing
Staffing
Estate Telecommuni- Subtotal (Note 1)
Staffing
Business Business BusinessBusinesscations
Business
Business

Total

Amounts
shown onAdjustquarterly
ments consolidated(Note 2) statement ofincome(Note 3)

Net sales
Sales toexternal
33,1028,538
3,915
2,445 10,481
4,944
63,428 1,619 65,047
65,047
customers
Inter-segment
sales and
17
282
0
130
4
9
445
59
504
(504)
transfers
Total
33,1208,820
3,916
2,576 10,486
4,954
63,873 1,678 65,552(504)
65,047
Segment
1,662
954
447
(27)
400
93
3,530
(83)
3,447
(994)
2,452
profit (loss)
Notes: 1. “Others” represent businesses not included in reportable segments and include the operation and management ofagricultural parks, the operation of personal computer schools, the production of websites and other services.
2. The -994 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 16
million yen, and -1,011 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable to anyof the reportable segments.
3. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

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 “Technology Staffing Business” segment as World Holdings has acquired theshares of Creation View Co., Ltd. and made it a consolidated subsidiary. The event caused the amount of
goodwill to increase by 535 million yen during the first six months of 2021.
Significant gain on bargain purchaseNot applicable.
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.

13