Reference Materials for Describing the Results

for the Term Ended Dec. 2016

Mon., Feb. 20, 2017
World Holdings Co., Ltd.
First Section of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Ⅰ. Overview of the Financial Results for the Term Ended Dec. 2016
Ⅱ. Earnings Forecast for the Term Ending Dec. 2017
Ⅲ. New Mid-term Managerial Plan 2021

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved1

Ⅰ. Overview of the Financial Results for the Term Ended Dec. 2016

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Summary of the Term Ended Dec. 2016
 Net Sales grew for 7 consecutive terms and income increased for 6 consecutive terms, both marking a recordhigh.
 Thanks to income-emphasized measures, operating, ordinary, and current net incomes exceeded respective
estimates considerably.
 The dividend amount increased to 75.3 yen/share.
Units: million y en, %Results forthe term
ended Dec.
2015

Results forthe term
ended Dec.
2016

Net sales

87,984

94,3346,350

7.2

100,111△ 5,777

94.2

Operating income

5,137

7,407

2,270

44.2

6,275

1,132

118.0

Ordinary income

5,133

7,306

2,172

42.3

6,153

1,153

118.7

Net income attributable toowners of parent

3,810

4,192

381

10.0

3,814

377

109.9

Income per share [y en]

228.0545.7

250.92
75.3

22.87
29.6

10.0
64.8

228.27
68.5

22.65
6.8

109.9
109.9

Dividend per share [y en]

YoY
ChangeResult revised estimate ratio

Pct.
Changeinitialestimate

ChangePct. Change※Announced on Feb. 3, 2016
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

3

Sales by Business SegmentIn the Human Resources and Education Business, we faced difficulty in recruiting personnel, but it was covered by the cooperation among segments.
Due to the strengthening of the recruiting division, we were able to recruit more new graduates and mid-career workers, contributing to the growth in net
sales and income.
In the real estate business, we transferred real estate under favorable conditions grasping the market trend, boosting sales significantly.
In the information and telecommunications business, our investment led to the streamlining of store and personnel management, recovering revenue.

Result for theterm ended Dec.
2015

Units: million yen, %Factory BusinessTechnology Business

Human Resources
andEducation Business

R&D Business
Sales & Marketing
Business
T otal (for reference)

Real Estate Business Real Estate BusinessInformation andT elecommunications
Business

Information andTelecommunications
Business

OthersO ther BusinessNet sales

26,910

Segment income

1,801

Net sales

9,547

Segment income

989

Net sales

4,755

Segment income

518

Net sales

3,972

Segment income

218

Net sales

45,185

Segment income

3,527

Net sales

31,785

Segment income

3,061

Net sales

10,522

Segment income

4

Net sales

491

Segment income

Total

15

Net sales

87,984

Elimination or corporate△1,472

Operating income

5,137(Profitmargin)(6.7%)(10.4%)(10.9%)(5.5%)(7.8%)(9.6%)(0.0%)(3.2%)(5.8%)

Result for the term
ended Dec. 2016

30,111
2,080
10,334
1,015
5,533
571
5,654
296
51,633
3,964
34,481
5,171
7,742
244
476
17
94,334△1,990
7,407

YoY(Profitmargin)(6.9%)(9.8%)(10.3%)(5.3%)(7.7%)(15.0%)(3.2%)(3.7%)(7.9%)

Initial estimate
ChangePct. Change

3,201

11.9

32,571

279

15.5

2,316

786

8.2

10,669

25

2.6

952

778

16.4

5,650

53

10.3

565

1,682

42.4

5,525

78

35.7

296

6,448

14.3

54,963

436

12.4

4,157

2,696

8.5

37,092

2,109

68.9

3,921

△2,779△ 26.4

8,056

239

4,976.0

200

△15

△ 3.1

547

(Profitmar
gin)

Result revised
estimate ratio

92.4(7.1%)

89.8(8.9%)

106.6

96.9
97.9
(10.0%)

101.1
102.3

(5.4%)

100.2
93.9(7.6%)

95.4
93.0(10.6%)

131.9
96.1

(2.5%)

122.2
87.0(4.8%)

2

14.0

26

6,350

7.2

100,111

94.2

△517

35.2

△2,003

99.3

2,270

44.2

6,275

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved(6.3%)※Announced on Feb. 3, 2016

66.9

118.0

4

Factory Business< Sales composition by business segment and the number of staff > In the logistics field, we smoothly coped with the busy season in Oct. to Dec. in cooperation with othersegments and affiliated companies with which we have fostered relations.
 In the manufacturing field, the sales of semiconductors for car electronics and smartphones grew steadily.
 We will improve recruitment and the retention rate of employees by making their working and living
environments more comfortable with clients.

[million yen]

YoY

35,000Up 11.9%

30,111

30,00025,00020,00015,000(Based on monetaryamount)26,910
20.5%

△0.1％

5.8%
11.1%

6.0%
5.7%

＋14.8％△43.6％

15.6%＋51.8％

11.4%

4.8%

△17.1％

27.9%＋78.9％

23.8%

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

Segment income

Sales composition by business segment [%][million yen][persons]

2,500

12,0002,000

Up 15.5%

2,080

1,801
8,000

1,500

17.3%

2,176

1,162

665

722

1,000
4,000

24.1%

19.5%

2015/122016/122,000△10.5％

0

0

7,320
6,260

500

5,000

Others
Machinery
Automobiles
Electric & Electronics

8,144

6,000

6.5%

10,00010,161
10,0000
2015/122016/12

Environment & Energy
Semiconductors
Logistics

2015/122016/12
Average other companies/acceptance
Entrusted by overseas and governmnent office
Number of staff*The number of staff is a three-month average. External staff
members accepted from other companies are included.
*Number of staff included only staff members who are engaged in
on-site operation work.

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5Technology Business< Sales composition by business segment and the number of staff > We faced difficulty in recruiting experienced personnel, but developed systems for training and assigning personnel andrecruited unexperienced workers. The sales in the fields of automobiles, information, and communications were healthy.
 The construction division concentrated on the recruitment and assignment of young workers as demand was strong.
 The repair division concentrated on the development of the base of business from the following fiscal year incooperation with Nikken Techno Co., Ltd.
Segment income

Sales composition by business segment (%)[million yen]
YoY

12,00010,000

8,000

6,000

9,547

Up 8.2%
10,334(Based on monetaryamount)[million yen][persons]

1,200

2,000

1,000
28.8%

＋19.2％

5.6%
5.1%

6.2%
4.8%

＋19.1％+ 2.6％

15.7%

15.7%

＋8.4％

Variation in the number of staff (3-month average)989

Up 2.6%

1,015

1,897
1,669

1,500

301

215

800

26.2%

797
705

600

1,000

400
4,000

500
＋1.5％

2,000

47.4%

44.5%

200
0

2015/122016/122015/122016/12Engineer other than production
Design development
Production technology

2016/12

OthersAutomobiles
Machinery
Information and telecommunications business
Semiconductors

799

0
2015/120

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

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6

R&D Business< Sales composition by business segment and the number of staff > We shifted from the skill matching type to the solution type, and expanded our team.
 The PV division established the channels of clients other than pharmaceutical makers.
 DOT World Co., Ltd. developed an environment for producing experienced personnel
through on-the-job training (OJT), and formed the base for business expansion.
Sales composition by business segment (%)[million yen]

6,000
5,000

4,755

[persons][million yen]YoY

Up 16.4% 5,533

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

Segment income(Based on monetaryamount)600

Up 10.3%

571

800＋11.7％

4,000

24.8％

912

518
500

23.8％

1,000

769

82

77

400
600

3,000

300

44.3％
＋22.9％

41.9％

1,000

33.3％

31.9％

2015/122016/12

692

200

100
+ 11.6％00Pharmaceutical/biotechnology

Chemical

830

400
200

2,000

0
2015/122016/122015/12
R&D staff

Clinical

2016/12
DOT staff*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged in on-site operation work.
※PV: =Abbreviation of Pharmacovigilance
To appropriately and swiftly collect and analyze safety information, such as the side effects ofpharmaceutical products.

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7

Sales & Marketing Business<Sales composition by business segment and the number of staff>
 The CB division (dispatch of sales staff) was able to smoothly cope with the busy season of department
stores and mass retailers, thanks to the effects of the newly established recruitment center.
 The OCS division (dispatch of operators to call centers, etc.) made favorable transactions via firm
connections with leading vendors, increasing its ability to appeal to job seekers and expanding
recruitments.
Segment income

Sales composition by business segment (%)[million yen]

6,000
5,000

5,654

Up 42.4%[million yen]

YoY
(Based on monetaryamount)Variation in the number of staff (3-month average)
296

300

3,000

2,761

Up 35.7%
2,500

218
3,972

38.8％

4,000
3,000

+ 39.8％

200

2,000

40.2％

1,500
61.2％

2,000

100

1,383

1,854

886

1,000

+ 44.0％

1,000

1,378

59.8％

500
0

0
2015/12CB

2016/12968

02015/122016/12OCS

2015/12CB

2016/12OCS*The number of staff is a three-month average.
*Number of staff included only staff members whoare engaged in on-site operation work.

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

8Real Estate Business<Sales composition by business segment and major real estate we developed> As for development, we transferred real estate under favorable conditions grasping the market trend, and sales grew,
but below the estimate.
 As for renovation, our performance was better than the forecast, thanks to the procurement through our original
routes.
 As for prefabricated houses, the number of orders received increased at Kumamoto Office, which was opened in
Apr., thanks to synergy among group companies.
Major real estate we developed

Segment income

Sales composition by business segment (%)[million yen][million yen]

YoY

40,000Up 8.5% 34,481
31,785

5.5%

24.7%

29.8%

(Based on monetaryamount)

6,000

5,171
5,000

Up 68.9%

30,000＋37.6 ％

4,000

3,061
20,00010,000

3,000

75.3%

Residential Shinagawa
Nakanobu Grand Class

Residential
Morisekinoshita

2,000
64.7%

△ 4.9 ％

1,000
002015/122016/12

Prifabricated houses-related
Renovation-related
Development-related

2015/122016/12※The prefabricated house section was newly established in
4Q of FY2015 as Omachi World became a subsidiary.

Residential
Ichinosekiekimae

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

9Information and Telecommunications Business<Sales and shop strategies>
 To retain repeat customers by developing a network of excellent shops
 To increase income per customer by selling related products
Segment income

Sales for each target[million yen][million yen]

12,000250

10,522
10,000

10.2%

Down
26.4%

Development of stores that would be chosen by customers
244

200

7,742

8,000

13.8%

△2.6％

150

6,000
100

89.8%

4,000
86.2%

2,000

△29.2％

50

Enrichment of products for corporations
4
0

0
2015/12

Individual

2016/122015/122016/12

Corporation

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10

Financial Condition B/S

In Real Estate Business, we enhanced the procurement of land for business, and increased real estate for sale in process.

Total assets[million yen]

80,00060,00073,392Current assets

56,32940,00066,996（+16,593）

・ Increase in cash and deposits
・ Increase in real estate for sale in process

66,996

4,711 million yen
12,243 million yen

50,40220,000
0

5,927

6,395

End of Dec. 2015

End of Dec. 2016

Fixed assets[million yen]

80,00060,000Liabilities

57,928（+13,495）

Current assets

・ Increase in short-term debt
・ Increase in long-term debt

Total liabilities and net
assets73,392

8,898 million yen
2,098 million yen

56,32944,01840,00032,913
Net assets

20,000013,90911,519• Increase in retained earnings

11,897

15,464End of Dec. 2015

End of Dec. 2016

Net assets

Fixed liabilities

15,464（+3,566）
3,468 million yen

Current liabilities

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

11Cash Flows Operating CF was minus 3,644 million yen, investment CF was minus 1,473 million
yen, and financial CF was plus 9,999 million yen.
[million yen]

Operating CF

16,000Investment CF

Financial CF

Operating CF
14,00012,000

9,999
10,000

8,000

6,000

Term-endbalance of
cash andcash
equivalents

Term-endbalance of
cash and cash
equivalents

・Current net profit before taxes and other adjustments
6,827 million yen
・Increase in real estate for sale △10,298 million yen
・Increase in accounts receivable △1,297 million yen

Investment CF△3,644
15,764△1,473・Expenditure through the acquisition of tangible fixed
assets△1,127 million yen
・Expenditure through the acquisition of nonconsolidated subsidiaries△260 million yen

10,769Financial CF

4,000

2,000

・Net increase in short-term debt
10,453 million yen
・Proceeds from long-term borrowing 7,185 million yen
・Expenditure through the repayment of long-term debt
△6,864 million yen
・Payment of dividends△763 million yen＋4,995 million yen

0

2015/12末End
of Dec. 2015

Operating

Investment

Financial2016/12末End
of Dec. 2016

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

12Ⅱ. Earnings Forecast for the Term Ending Dec. 2017

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

13Summary of the full-year earnings forecast for FY2017
 Sales are estimated to grow for the 8th consecutive term. We will fortify the base for the new mid-term managerial plan.

Results for theterm ended Dec.
2016

Forecast for theterm ending
Dec. 201794,334

YoY
ChangePct.
Change29,51231.3△1,137△ 15.4△1,369△ 18.7

Units: million y en, %Operating income

7,407

Ordinary income

7,306

123,846
6,270
5,936

Net income attributable toowners of parent

4,192

3,519

△672

△ 16.0

Income per share [y en]

250.92△40.29△ 16.1Divident per share [y en]

75.3

210.63
63.2△12.1△ 16.1

Net sales

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

14Full-year earnings forecast by Business Segment
 Sales are estimated to grow in all segments.
 New business and Farm Co., Ltd. will be incorporated into other business.

Results for FY 12/2016
Units: million yen, %Net sales
Factory Business
Segment inncome
Net sales
Techno Business

Human Resources
andR&D Business
Education Business
Sales & Marketing
Business

Segment inncome
Net sales
Segment inncome
Net sales
Segment inncome
Net sales

Total (for reference)
Segment inncome

Real EstateBusiness

Net sales
Real Estate Business
Segment inncome

Information andInformation andTelecommunications Business Telecommunications
Business

Other

Net sales
Segment inncome
Net sales

O ther Business
Segment inncome
Net sales

Total

Elimination or corporate
Operating income

30,111
2,080
10,334
1,015
5,533
571
5,654
296
51,633
3,964
34,481
5,171
7,742
244
476
17
94,334△1,9907,407(Profitmargin)Forecast for FY2017(6.9%)(9.8%)(10.3%)(5.3%)(7.7%)(15.0%)(3.2%)(3.7%)(7.9%)

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

34,2992,242
11,818
940
6,400
582
6,500
397
59,0184,163
50,685
3,702
10,198245
3,943
36
123,846△1,877
6,270

YOY(Profitmargin)(6.5%)(8.0%)(9.1%)(6.1%)(7.1%)(7.3%)(2.4%)(0.9%)(5.1%)

Change

4,187
162
1,484
△74
867
10
845
100
7,384
198
16,204△1,468
2,455
0
3,467
18
29,512(―)△1,137

Pct. Change

13.9
7.8
14.4
△7.4
15.7
1.9
15.0
33.9
14.3
5.0
47.0
△28.4
31.7
0.3
727.8
103.9
31.3
(―)
△ 15.415

Return to shareholders[yen]

From fiscal 2016, we aim to achieve a payout
ratio of 30%.

80.0

Variation in dividend per share.

75.3

70.0
63.2
60.0
50.0

45.7

40.0
30.0

23.7

20.0
10.0

8.5
4.33

4.5

10.0

4.5

0.0
2009/12 2010/12 2011/12 2012/12 2013/12 2014/12 2015/12 2016/12 2017/12(estimate)※The earnings forecast and estimated dividend are based on currently available information and certain assumptions that are consideredreasonable, and actual results, etc. may be considerably different from them due to various factors.

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16

Ⅲ. New Mid-term Managerial Plan 2021

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

17Corporate ethos
Under the basic policy of “contributing to people and cultures around the world
through business,” we will create “systems in which people can flourish” with our
3 core businesses.
Real Estate Business

Personnel and education businessTo connect people and housing
New ways of urban development

To connect people and jobs—
New ways of working

World Intec

Three Core
Businesses

World Residential
World Development Indonesia

World Intec Fukushima

World iCity

World Intec Taiwan

World Wisteria Homes

DOT World
Advan
Geographic
Information of Kyushu

World Mikuni
Information and communications business

World Resiselling

To connect people New waysof communication

Nichimo Real Estate

MikuniWorld Intec Shanghai

Omachi WorldEngma Intec
Farm Corporation

Hoei
Construction

Best IT Business

M’s Corporation
No. of affiliates: 24

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18

Variation in performance
To design an optimal portfolio with multiple businesses according to the economic
environment in each age ⇒ Stable business growth where individual businesses can
support one another.
Self-growth period for fortifying corporate governance(new mid-term managerial plan 2012-2016)[million yen]

120,000

Formation of a business base (early period)
New mid-term managerial plan 2007-2009,
mid-term managerial plan 2010-2013

100,000

Listed in the 1st section of TSE

94,334

7,407

80,000[million yen]

10,000
9,000
8,000
7,000
6,000

60,000

Launch of information andcommunications business
Listed in JASDAQ market

Lehman’s fall

Launch of realestate business

5,000
4,000

40,000

3,000
2,000

20,0001,000
02006/12

2007/12

2008/12

2009/122010/122011/122012/122013/12

2014/122015/122016/12

Human Resources and Education BusinessInformation and telecommunications business

Real estate business

Operating profit (right axis)

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019Review of the new mid-term managerial plan (2012-2016)

Well-balanced
management(Capability of stable growth)

自力拡大

Self growth (Development of anorganization with strong governance)（ガバナンスの強い組織構築）

Emphasis 利益重視
on profit Enhancementof earning capability（稼ぐ力）アップ

Establishment of a base
拡大基盤の整備for growthCompletion of a robust organizationthat can grow stably
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

20New mid-term managerial plan (2012-2016); summary and results of each business (1)Summary and results (Human Resources and Education Business)
Intensive measures
In addition to personnel development and scale expansion of our existing business, we reviewed our commercial
distribution for manufacturing, and promoted the strategies focused on the peripheral fields of the existing business.

Results
We developed a firm base for our existing business, and started our business in promising markets.
Business strategies
・Entry to the logistics market[Cultivation of new fields for the factory business]
・Entry to the factory engineer field[Cultivation of new fields through the cooperation between the techno and factory businesses]
・Entry to the PV market[Cultivation of the peripheral fields of the R&D business]
・Entry to the OCS field (call centers and light duties) [Cultivation of unexplored fields for the business of dispatch of registered workers]
・Launch of the S&M business[Establishment of new segments in response to the expansion of the CB and OCS sections]
・Launch of Techno Design Center[Establishment of an institution for training engineers]
M&A
・DOT World[Launch of the CRO business]
・Noritsu Taiwan[Enhancement of the training of engineers and the communication with overseas personnel]
・Nikken Techno[Strengthening of the repair business]

Results in 2011------------------------------Factory business
15,722 million yen---------R&D business
2,502 million yen-----5,982 million yen
Technology business
Sales & marketing business
683 million yen

Results in 2016
30,111 million yen（191.5％）
5,533 million yen（221.1％）
10,334 million yen（172.8％）
5,654 million yen（827.8％）

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21

New mid-term managerial plan (2012-2016); summary and results of each business (2)Summary and results (real estate business)
Intensive measures
To predict what kinds of business and areas will see the growth of demand while considering economic situations andpolicies, clarify the roles of operating companies, and promote strategies for business expansion.

Results
We carried out well-balanced business administration that is not swayed by the economic environment, maximizing profit.
Business strategies
・To establish operating companies in Tohoku, Osaka, and Fukuoka,
following the Tokyo Metropolitan Area [Expansion of the area for development business]
・To revise the portfolio of land for business while considering the economic environment,
and enrich collaboratively developed real estate as well as the real estate developed by our company［Promotion of efficient commercialization］
・To actively make inroads into new fields [real estate management, prefabricated houses, rental, renovation, single-family houses]
M&A
・Omachi Unitex (present: Omachi World) [Prefabricated house and rental business]
・Mikuni Sangyo (present: Mikuni) [Renovation and area expansion]・Compax[Real estate management]・Hoei Kensetsu[Single-family housing business (Hokkaido)]
・Farm[Leisure industry]

Real estate business---------(To be officially determined in 2017)

Results in 2011

Results in 2016

1,514 million yen

34,481 million yen（2277.5％）

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22New mid-term managerial plan (2012-2016); summary and results of each business (3)Summary and results (information and communications business)
Intensive measures
Under the saturated business environment, we prioritized the investment in the development of future systems whileassuming store operation and personnel that will be required in the future. We prepared for the second expansion phasein which we would strive to retain customers.

Results
Store operation was rationalized, transitioning to a flexible excellent store system. Personnel with highhospitality were produced, achieving a store operation system and increasing new services.
Business strategies
・Establishment of the network of excellent stores[Promotion of store operation streamlining focused on scrap]
・Personnel education to offer services that would retain customers［Original personnel education］
・Establishment of stores under a new concept[Keitai-no-madoguchi (Customer Support for Cell Phones) opened]・Increase of new services [LED rental, etc.]

Results in 2011
Information and communications business ---------- 9,176 million yen

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Results in 2016
7,742 million yen (84.4%)23

Summary of quantitative goals in the new mid-term managerial plan (2012-2016)
Summary and results (quantitative goals)

Net Sales did not reach the target, because real estate was transferred at a wrong timing in
the real estate business. Operating income exceeded the target considerably, because we
conducted business while emphasizing profit.
New mid-term managerial plan in 2012(quantitative goals)

Performance in 2016 (results)

Net Sales
100 billion yen
Operating income
5 billion yen
ROE
20% or over
Capital-to-asset ratio 25% or over
Payout ratio
20% or over

Net Sales
94.3 billion yen
Operating income 7.4 billion yen
ROE
33.5%
Capital-to-asset ratio 19.4%
Payout ratio
30%

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

24Environmental changes in each business field

Human Resources
andEducation Business

Topics

Effects and environmental changes

Amendment to the Worker
Dispatch Law
Acceleration of outsourcing

・Effects of the amendment to the law(The burdens on enterprises hiring dispatched workers increased,administrative guidance improved, and so on.)・Ability to do business in more advanced business fields
・Acceleration of decrease of labor due to the population decline(Intensification of recruiting competition)

Increase of foreign visitors to
JapanReal estate business

Hosting Tokyo Olympics

Increase of business ofrestoration after the earthquake

・Skyrocketing of land prices
・Accelerated augmentation of construction cost
・Rise in selling prices

disaster

Information andtelecommunications
business

Guidelines regarding therationalization ofassistance in purchase ofsmartphone terminals

・Competition among 3 carriers + MVNO
・Consolidation and abolishment of stores
・Carriers improved their brand strategies (highrequirements)

We require a strategy for achieving the most efficient stable growth(expansion) while predicting changes.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

25New mid-term managerial plan 2021 Summary (1)New Vision

ーPursuit of an evolved system in which people can flourish“We aim to become an enterprise that can grow stably,
more strongly and more socially”
Appropriate scale andwell-balanced businessadministration

Stablemanagement
Social contribution in various
fields with a broad range ofbusinesses

Expansion of ourbusiness domain

Business
expansion

High sociality

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26

New mid-term managerial plan 2021 Summary (2)Expansion based on well-balanced business administration
We will pursue optimal profit earning performance with an appropriate scale while concentrating on
our core business, and aim to expand our existing business based on stable growth. In this plan, we
will make inroads into new fields surrounding our existing business with an appropriate scale andoffer new services.
<Second half of the period of the
mid-term plan>

Expansion of corebusiness into
peripheral fields<First half of the period of the mid-term plan>

Expansion of our core businessto appropriate scale《New business field》

Core business
Human Resources and Education Business

Real Estate BusinessInformation and Telecommunications
Business

Axis of time

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

Human Resources and Education Business (1)Outline of Human Resources andEducation Business

Beyond outsourcing…
From unilateral matching to bilateral matching
Endeavor as a professional in job creation
Keywords

Personnel platform + one-stop services + bilateral matching (personnel
development + job creation) + appropriate scale＝
Creation of an environment in which various people can flourish

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved28

Human Resources and Education Business (2)Future direction of the manufacturing industry

Population
decline,automation,AI, overseas
business

Shrinkage of themarket of
employment inthemanufacturing
field《Manufacturing field》

Acceleration of open external utilizationof “technologies” and “personnel,”Labor
shortagewhich had been held by individualcompanies《Amendment to the Worker Dispatch Law》
To encourage temporary staffing agencies,
which can accept personnel surely

New manufacturing flow

Conventional manufacturing flow

Manufacturing based on each maker’s originaltechnology and human resources
Maker B
Maker A
Core technology

Core technology

Technology

Technology

Personnel

Personnel

Manufacturing with technologies and humanresources available to any enterprise
Maker A
Maker B
Core technology
Diffusion ofoutsourcing

Core technology

Technology
Open innovation
Personnel

Supply of products

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

Human Resources and Education Business (3)Promising human resources (HR) market and main trends

Mobilization of HR--Appropriate personnel, timing,
and workplaces

HR platform※--for new markets

Worker dispatch field from now on《Existing market＝Prioritization on needsfrom businesses》
2,585 billion yen in 2015

Expansion strategy within the existing
field＝✖

Electricity

Automobiles

Research

Expansion of the existing
markets

Semiconductor

Open innovation field
Mobilization of HR
HR platform※

Response to new markets

Electricity

Automobiles

Semiconductor

Production

Technology

Personnel in specific industries andbusinesses

Competitive
advantage

Production

Conventional worker dispatch field

Technology

From the utilization of
personnel in specificindustries to theutilization of personnel
beyond industrial
categories

Research・Human resources in a
broad range of fields
・Support in careerdevelopment in any field
・Creation of various ways
of working (industries,
jobs, working conditions)《Existing market + Our original markets》
3,472 billion yen + α in 2020

※HR platform: Specialized group with respective technologies and skills

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30

Human Resources and Education Business (4)Personnel development process
Support for career development
A variety of educational systems

Various routes for employment
One-stop services↓
A broad range of humanresources

Based on inter-segmentcooperation(Sharing of information and roadmaps)(Promotion of interaction among workers
beyond segments)

Development of a HR platform* based on a competitive organization
Various routes for employment(One-stop service)

R&D
TechnoSpecialized education and roadmaps for human resources in a broad range of fields
About 20% of registered workers
About 80% of registered workers (Know-how unique to our company)
Long-term stay is possible
according to career goals.

HR platform(Teams with expertise)SI

Career change

FC

Career development

S&M

Skill improvement

Professionals
Technicians
Managers

Career path

Transfer (employment)New
population
development

Beyond that…

Diffusion of experience※ HR platform: Specialized group with respective technologies
and skills
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved31

Human Resources and Education Business (5)Bilateral matching
Matching according to unilateralneeds from businesses↓
The expansion of the recruitment
population and the stability ofretention rate are major strategies
for increasing registered workers.
(War of attrition)

Collection and management of resumes +Accumulation of info on career goals.
Personnel development (To cover the shortcomings of applicants)
Job creation (Job creation according to applicants’ career goals)
Bilateral matching for developing peronnel and jobs

Recruitment from now on

Conventional recruitment
Recruitment of workers according to unilateral needs from businesses
Matching =Recruitment

Applicants
Conflict of needs＝ Not hired

Needs
from
businesses

Bilateral matching based on the collection and management of resumes,
the accumulation of career goals, and the production of databases

Needs from businesses

Applicants↓《Personnel development》
To cover the shortcomings ofapplicants
・Awareness raising
・Challenges from other segments
・Support for career development,etc.

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

Matching↓《Job creation》
Development of an environment
according to career goals
・Work styles suited for career goals
・Creation of personnel utilization
methods
・Expansion of needs, etc.

32

Real estate business (1)Outline of realestate business

Striving to improve the abilities to run our businessand stand on our own
Reform of the earning structure based on the resilientbusiness that is not swayed by the economic environment
Keywords

Improvement of recurring-revenue business + Fund turnover + Strengthening of self
procurement capability + Fortification of housing business＝
Launch of new real estate business

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

33Real estate business (2)Reform of the profit earning structure considering fund turnover
Change in profit rate through the improvement of recurringrevenue business

Optimization of fund turnover = Stability of cash
flows

Development-centeredbusiness structure↓

Vulnerable to a change
in the economic
environment

Strong self fund procurement capability for seizing
investment chances《Differences in properties among business categories》
Risk

Recoupment
periodProfitrate

Recurring revenue
property

Development

High

2-3 years

High

Low

Renovation

Medium

4-6 months

MediumMediumCustom homeHigh8-10 months

High

MediumPrefabricated house

Medium

7 years

MediumHigh

Property

Low

Short

Low

High

《Change of profit composition》
Recurring
revenue

One-timerevenue

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

Recurring revenue（Low risk, low return）

One-time revenue（High risk, high return）

34

Real estate business (3)Strategy
Development (one-time-revenue business)

Renovation (one-time- & recurring-revenue
businesses)

We aim to increase revenue by maximizing ROI
and achieving an appropriate scale based on the
procurement and supply considering the
economic environment

To earn recurring revenue based on our
nationwide network and procurement channels,
and become No.1 in the renovation field.

<No. of residential units supplied per year (appropriate scale)>
Tohoku: 100-200 units
Tokyo Metropolitan: 400-500 units
Kinki: 100-200 units
Kyushu: 100-200 units<No. of residential units supplied per year
(appropriate scale)>
1,500 units《before》

ONE PARK RESIDENTIAL TOWERS《Miyagi Pref.》Branz Yokohama-Bashamichi Residential《Kanagawa Pref.》Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved《after》
35

Real estate business (4)Prefabricated houses (recurring-revenue
business)

Strategy
Single-family houses (one-time-revenue
business)
To improve our overwhelming brand andperformance in Hokkaido based on our networkin Tohoku region, and earn recurring revenue by
renovating, buying, and reselling over 4,000
houses we have sold so far.

In addition to existing products, we will develop
new products, to enrich our product lineup, andimprove the distribution to the existing
infrastructure and build our original routes insideand outside Japan, to earn more recurring
revenue with rental business.

<No. of houses supplied per year>
300-350 houses

Our original brand《Challenge 999 Series》

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

36Real estate business (5)Expansion of our business domain
To rationalize fund turnover and enter new real estate markets

Foray into new fields
To achieve well-balanced
management by enriching products
and services
To develop a robust financial base

Establishment of adevelopment-centeredbusiness baseSingle-family houses
Prefabricated houses
Renovation

Development

2010

2016
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

2021
37

Information and telecommunications business (1)Outline of Informationand telecommunications
business

Creation of new value through the pursuit of better services
Fusion and synergy of target areas (expansion of the store network)
and items (products)
Keywords

Hospitality + Target area expansion + Cultivation of products＝
Progress to the community-based expansion phase

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved38

Information and telecommunications business (2)Strategy
Cellphone shop
Overwhelming customer retention > quantity sold of cell phones
To enlarge excellent existing shops
Development of excellent sales staff
To expand new target areas

Investment

Increase of customers
Growth of sales of secondary products,
etc. and revenue from services

Growth of revenue

Retention of carriers

Enhancement of support

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

39

Information and telecommunications business (3)Strategy
Cultivation of products/services
We aim to boost profit rate by enriching primary products and services, which produce
recurring revenue, while emphasizing the utilization of the existing infrastructure(shops, human resources, and business segments).
《Infrastructure for information andcommunications business》
Primary products/services that
produce recurring revenue

Customers

Sites《Infrastructure for personnel andeducation business》

Sites

Personnel

Clients

Distribution《Infrastructure for real estate business》

Sites

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

Customers

Relatedenterprises

40Other business (new business)
Farm Corporation
To revitalize community-based facilities, create a broad range of employment,
communicate with local residents, and fertilize local economies.

Akagi Plateau Pasture

Kronenberg
Shinshu-Shiojiri Farm Park

Tirolian Forest
Komorebi
Sakai-Midorino Museum

Morino Ibaraido

Harvest Hill

Chiba Zoological Park

Hibikinada GreenPark

Fureai Dobutsu-no-Sato

Minokamo Rest Area
Shiga Farm Park

Corporate Profile

Blume-no-Mori
Okayama Farm Park

German Forest Kronenberg

Name: Farm Corporation
Location: 1705-1 Omachi, Saijo-shi, Ehime Pref.
Business content: Operation and management of farmparks
Established in: Jul. 1968
Covered area: Ibaraki, Chiba, Gunma, Nagano, Gifu,
Shiga, Osaka, Okayama, and Fukuoka Prefectures
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

41

Social contribution activity (World Intec Fukushima)
Establishment of Department of Work
(Job-placement office for women [mothers])
In Koriyama City, Fukushima Prefecture, “Village for Developing Lifestyles” was opened, as we have participated in thisproject from the planning stage, which is subsidized by Nippon Foundation. In this facility, “Department of Work (Jobplacement office for women [mothers])” is operated by World Intec Fukushima, which is one of our affiliates. Its
operation began as a site for distributing information for empowering women.

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

42Numerical Goals

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

43Numerical goals for 2021

Net Sales: 200 billion yen(M&A accounts for 10-15 billion yen)

Operating income: 10 billion yen
ROE: 20% or over
Capital-to-asset ratio: 20% or over
Investment for growth (M&A funds): 10 billion yen
Payout ratio: 30% or over

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

44

Numerical goals in the new mid-term managerial plan for 2021
In 2021
Net Sales: 200 billion [million yen]
yen
12,000Operating income:10 billion yen[million yen]

250,000

In 2016
Net Sales: 94.3 billion yen
Operating income: 7.4
200,000
billion yen

10,0008,000
150,000
6,000

100,000
4,000
50,000

2,000

0

0
2016年
2016

2017年
2017

2018年
2018

2019
2019年

2020年
2020

2021年
2021

Factory business
ファクトリー事業

Technology
テクノ事業businessR&D
business
R&D事業

S&M business
S&M事業

Other business
その他事業

Real estate business
不動産事業

Information and
情報通信事業

営業利益
Operating profit

telecommunications
business

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

45

Return to shareholders

We will keep payout ratio 30% while prioritizing the investment forbusiness expansion.
Variationin dividend
配当金の推移[unit: yen]

75.3
63.2
47.5
23.7

4.5

4.5

8.5

10

2010年
2011年
2012年
2014年
2015年
2016年
2017年
2010
2011
2012 2013年
2013
2014
2015
2016
2017

2021年
2021

予想
Estimate

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

46Inquiries about this document
Yohei Shigematsu

Publicity and IR Division
Business Management Dept.
World Holdings Co., Ltd.
TEL

03-3433-6005

E-MAILirinfo＠world-hd.co.jp

URL

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

Any information in this document is not intended for promoting the purchase, sale, or the likeof the shares of World Holdings. The opinions, estimates, etc. written in this document are
based on our judgment made at the time of production of this document, and we do notguarantee the accuracy of the information, which may be revised without notice. Our
company or any information provider will not take responsibility for any damage arising outof this information. We would appreciate your understanding.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved47

Reference Material

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

48Comparison between the results and forecast in each segment for the FY2016 (1)Human Resources and Education Business

Net Sales did not reach the estimate, but the recruitment based on inter-segmentcooperation and the assignment of training staff improved. Profit in each segment is
growing thanks to the charge-up by cost reduction and personnel development.
Factory businessTechno business

R&D business

Sales & marketing business

4Q
3Q

Sales

2Q
1Q
Results for
H27決算
FY2015

Forecast
H28予算
for
FY2016

Results for

H28実績
FY2016

Sales did not reach the estimate,as the logistics section was
healthy, but recruitment did not
go well.

Results for
H27決算
FY2015

Forecast

H28予算
for FY2016

Results for

H28実績
FY2016

Profit grew, as we reduced
recruitment cost by increasing
the recruitment of unexperienced
workers based on our training
system.

Results for

H27決算
FY2015

Forecast

H28予算
for FY2016

Results for

H28実績
FY2016The earning base wasfortified, by improving ourtechnologies andorganizational capability.

Resultsfor
H27決算
FY2015

Forecast
H28予算
for FY2016

Results for
H28実績
FY2016

During the busy season of thesales sector, we concentrated
on recruitment to cope with it.
The cooperation with thelogistics section was healthy.

4Q

Profit ineachsegment

3Q
2Q
1Q
H27決算
Resultsfor
FY2015

H28予算
Forecast

H28実績
Results forfor FY2016

FY2016

Resultsfor
H27決算
FY2015

Forecast
H28予算

for FY2016

Results for
H28実績
FY2016

Results for
H27決算
FY2015

Forecast
H28予算
for FY2016

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

Resultsfor
H28実績
FY2016

Results for
H27決算
FY2015

Forecast
H28予算
for FY2016

Results for
H28実績
FY201649

Comparison between the results and forecast in each segment for FY2016 (2)Real estate business and information & telecommunications business

As for the real estate business, income increased considerably because real estate was transferredunder more favorable conditions than expected, thanks to profit-emphasized measures. As for the
information and telecommunications business, income per customer increased, recovering
Real estate businessInformation & communications
profitability.
services

4Q

4Q

Net Sales

3Q

3Q

Results for

FY2015
H27決算

2Q

2Q

1Q

1Q

Forecast

H28予算
for FY2016

Results forResults for

H27決算
FY2015FY2016
H28実績

The real estate scheduled to be transferred in 4Q
was transferred in 3Q under favorable conditions.
Net Sales did not reach the estimate, but grewconsiderably.

Forecast

H28予算
for FY2016

Results for

FY2016
H28実績

Income per customer increased, due tothe customer retention based on the
excellent store network.

1Q

Income in eachsegment

2Q
3Q
4Q

Results for

FY2015
H27決算

Forecast

H28予算
for FY2016

Results for

FY2016
H28実績

Results for

FY2015
H27決算

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

Forecast

for FY2016
H28予算

Results for

H28実績
FY201650

NotesCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved51