Consolidated Financial Results for the First Quarter of 2023
(Three Months Ended March 31, 2023)[Japanese GAAP]May 11, 2023

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange
2429
URL: http://www.world-hd.co.jp
Eikichi Iida, Chairman and President
Shigeru Nakano, Director, Business Management Division Manager
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
May 12, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
None
Holding of quarterly financial results meeting:Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Three Months of 2023 (January 1 to March 31, 2023)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%

Three months ended Mar. 31, 2023
43,724Three months ended Mar. 31, 2022
40,711
Note: Comprehensive income (millions of yen)

Million yen%

Million yen%

Million yen

7.4
1,934
59.4
1,906
46.4
23.2
1,214
(27.8)
1,302 (28.7)
Three months ended Mar. 31, 2023: 992 (up 82.8%)
Three months ended Mar. 31, 2022: 542 (down 60.9%)

Net income per share
Three months ended Mar. 31, 2023
Three months ended Mar. 31, 2022

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent
963
496

%

94.0
(62.5)

Diluted net income per share

Yen

Yen

54.93
28.43

54.68
28.28

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

127,024
36,574As of Mar. 31, 2023
123,591
37,195
As of Dec. 31, 2022
Reference: Shareholders’ equity (millions of yen)
As of Mar. 31, 2023: 34,808

Yen

27.4
1,984.57
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
2023 (forecast)
0.00
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

First half
88,7362.9
2,507 (45.8)
2,433(48.7)
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

1,543
6,045

(39.5)
13.2

88.03
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, (3) Notes to Quarterly
Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated
Financial Statements” on page 9 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, (3) Notes to Quarterly
Consolidated Financial Statements, Changes in Accounting Policies” on page 9 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 Mar. 31, 2023:

17,653,300 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 Mar. 31, 2023:

113,606 shares

3) Average number of shares during the period
Three months ended Mar. 31, 2023:

17,535,797 shares

Three months ended Mar. 31, 2022: 17,462,327 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 4 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for quarterly financial results
Supplementary materials for the quarterly financial results will be disclosed today (May 11, 2023), using the Timely Disclosure
network (TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First 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

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

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income
For the Three-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Changes in Significant Subsidiaries during the Period

9Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

9

Changes in Accounting Policies

9

Segment Information

9

Subsequent Events

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first quarter of 2023, the prolonged COVID crisis finally began to settle and the movement towards
the post-pandemic era accelerated. However, numerous factors put downward pressure on economic activity,
including soaring resource and raw material prices as well as labor shortages and rising living costs due to
inflation, and the outlook for the Japanese 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, resulting in sales and profits outperforming the initial plan.
Net sales increased 7.4% year on year to 43,724 million yen (up 5.1% vs. plan). Operating profit increased 59.4%
to 1,934 million yen (up 70.4% vs. plan), ordinary profit increased 46.4% to 1,906 million yen (up 75.8% vs.
plan), and profit attributable to owners of parent increased 94.0% to 963 million yen (up 43.1% 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, although orders for electronic components and related products
centered around smartphones followed a downward trend compared to the previous year, the Group sought tostabilize the situation by leveraging its strength in covering multiple industries and incr easing its support tovarious sectors while also investing in recruiting and training personnel to handle orders expected in the second
half of 2023 and beyond. Furthermore, we made steady progress in preparing our training and assignment systems
as we welcomed a record number of new graduates in April.
Moreover, as disclosed on April 20, 2023, we have also decided to welcome Nippon Gijutsu Center Co., Ltd. into
our group. This company has a large staff of engineers specializing in advanced machinery design, and it is also
developing a staffing service in the manufacturing and technology sectors and an outsourcing service in technicalareas such as machinery, electricity, electronics, and software. This company plans to further enhance its strength
in contracting in addition to strengthening the technical field of this Products Human Resources Business.
As a result, sales were 23,450 million yen, up 17.6% year on year (up 9.4% vs. plan) and segment profit increased
3.5% to 918 million yen (up 46.6% vs. plan).
Services Human Resources Business
The Services Human Resources Business performed well, despite experiencing a decline due to the completion of
special demand projects in the first half of 2022, with preparations to establish new bases in the core logistics
sector. Meanwhile, demand in the hospitality sales sector increased as the COVID pandemic subsided, andprojects in collaboration with the JTB Group in the tourism sector made steady progress.
In the logistics sector, the Group has invested aggressively to expand operations, including the development of
new businesses such as dispatch order management services, by harnessing expertise in human resource
management and dispatch order management at staffing agencies developed through its contracting andconsortium systems.
Sales were 10,484 million yen, up 14.3% year on year (down 1.3% vs. plan) and segment profit decreased 96.3%
to 14 million yen (down 39.6% vs. plan).

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

Real Estate BusinessThis business is operating with caution because real estate prices in Japan remain high. The sale and delivery 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.
Sales were 7,027 million yen, down 19.6% year on year (up 3.1% vs. plan), and there was a segment profit of 906
million yen, compared with a segment loss of 57 million yen in the same period of 2022 (up 85.2% 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. However, the sales agent industry surrounding the business is undergoing aperiod of major transformation, and we are building a network of outstanding stores rooted in the communities inorder to receive the benefits of being a survivor. Additionally, we have promoted initiatives to stabilize thebusiness for the future by strengthening our portfolio, including electricity and telecommunications cost
reductions in the solutions business, through the sale of various products to corporate customers.
Sales were 1,948 million yen, down 9.7% year on year (up 0.2% vs. plan), and there was a segment loss of 69
million yen, compared with a segment loss of 37 million yen in the same period of 2022 (plan was a segment lossof 42 million yen).
Agricultural Park Business
The Agricultural Park Business was affected by high electricity prices and bad weather at the end of March, but
visitor numbers successfully surpassed those in the same period of the previous fiscal year due to appropriate
incentive measures leading to a reduction in planned losses. Furthermore, preparations for the busiest season from
April onwards were steadily promoted through the maintenance of various facilities and investment in new
playground equipment.
In addition, at the Comorebi Ibaraido Forest in Ibaraki Prefecture, environme ntally 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.
Sales were 813 million yen, up 15.4% year on year (up 5.3% vs. plan), and there was a segment loss of 117
million yen, compared with a segment loss of 89 million yen in the same period of 2022 (plan was a segment lossof 160 million yen).
(2) Explanation of Financial Position
AssetsTotal assets increased 3,433 million yen from the end of 2022 to 127,024 million yen at the end of the first quarterof 2023. This was mainly due to a decrease of 2,733 million yen in cash and deposits, increases of 2,495 million
yen in real estate for sale and 3,795 million yen in real estate for sale in process.
Liabilities
Total liabilities increased 4,054 million yen from the end of 2022 to 90,450 million yen. This was mainly due toincreases of 4,150 million yen in short-term borrowings, 4,281 million yen in long-term borrowings, decreases of
2,042 million yen in accrued expenses and 1,738 million yen in income taxes payable.
Net assets
Net assets decreased 621 million yen from the end of 2022 to 36,574 million yen, mainly due to a decrease of 640
million yen in retained earnings. The decrease in retained earnings was due to a decrease of 1,603 million yen in
dividends from surplus, which was partly offset by an increase of 963 million yen in profit attributable to ownersof parent.

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

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
World Holdings maintains its first-half and full-year consolidated forecasts that were announced in the“Consolidated Financial Results for 2022” on February 14, 2023.

4

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

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of 2023
(As of Mar. 31, 2023)

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

35,09132,358Notes and accounts receivable-trade

18,80917,522833

1,006

Real estate for sale

6,506

9,001

Work in process

113

111

Real estate for sale in process

43,09946,894

Other

3,811

4,934

(6)

(6)

108,257

111,823

6,032

5,996

4,059

3,935

192

183

4,252

4,119

Investment securities

1,229

1,252

Deferred tax assets

2,047

2,055

Leasehold and guarantee deposits

1,191

1,186

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

942

Allowance for doubtful accounts

(352)

(350)

Total investments and other assets

5,049

5,085

Total non-current assets
Total assets

15,333

15,201

123,591

127,024

1,225

1,017

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

269

288

Short-term borrowings

30,79834,949Accrued expenses

10,7988,756

Advances received

1,167

1,041

Income taxes payable

2,580

841

Accrued consumption taxes

3,307

2,819

Provision for bonuses

225

849

Other

5,115

4,572

Total current liabilities

55,48955,137Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability

25,14929,431

198

200

3,297

3,445

Other

2,260

2,234

Total non-current liabilities

30,90535,31286,39590,450Non-current liabilities

Total liabilities

5

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

(Millions of yen)First quarter of 2023
(As of Mar. 31, 2023)

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

1,314

1,323

Capital surplus

1,504

1,513

Retained earnings

32,86232,221

Treasury shares

(119)

(119)

Total shareholders’ equity

35,561

34,938Valuation difference on available-for-sale securities

14

16

Foreign currency translation adjustment

40

48

Remeasurements of defined benefit plans

(207)

(195)

Total accumulated other comprehensive income

(153)

(129)

76

72

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests

1,710

1,693

Total net assets

37,19536,574

123,591

127,024

Total liabilities and net assets

6

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

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)(Millions of yen)First three months of 2023
(Jan. 1 – Mar. 31, 2023)

First three months of 2022
(Jan. 1 – Mar. 31, 2022)
Net sales

40,711

43,724

Cost of sales

34,59835,947Gross profit

6,113

7,776

Selling, general and administrative expenses

4,899

5,841

Operating profit

1,214

1,934

64

16

Other

70

36

Total non-operating income

134

53

Interest expenses

41

66

Other

5

15

Non-operating income
Subsidy income

Non-operating expenses

46

82

Ordinary profit

Total non-operating expenses

1,302

1,906

Profit before income taxes

1,302

1,906

Income taxes

769

940

Profit533

965

Profit attributable to non-controlling interests

362

Profit attributable to owners of parent

496

963

7

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

(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)(Millions of yen)First three months of 2023
(Jan. 1 – Mar. 31, 2023)

First three months of 2022
(Jan. 1 – Mar. 31, 2022)
Profit

533

965

(11)

2

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

23

11

Remeasurements of defined benefit plans, net of tax

(1)

12

9

26

542

992

497

986

45

5

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

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

(3) 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.
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.
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 tre atment in the paragraph 27-2 of thisguidance.
There is no effect of the application of this guidance on the quarterly consolidated financial statements.
Segment Information
I. First three months of 2022 (Jan. 1 – Mar. 31, 2022)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Products
Human
Resources
Business

Services
Human
Resources
Business

Real EstateBusiness

Information
andTelecommunications
Business

Agricultural
Park
Business

Subtotal

Amounts shownon quarterly
Adjustments
consolidated(Note 1)statement ofincome(Note 2)

Net sales
Sales toexternal
19,938
9,174
8,735
2,157
704
40,711
40,711
customers
Inter-segment
sales and
130
46
3
14
1
196
(196)
transfers
Total
20,068
9,221
8,739
2,172
706
40,908(196)
40,711
Segment
887
392
(57)
(37)
(89)
1,096
117
1,214
profit (loss)
Notes: 1. The 117 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of -26
million yen, and 144 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 o f thereportable segments.
2. Segment profit (loss) is adjusted with operating profit shown on the quarterly consolidated statement of income.

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First 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 “Services Human Resources Business” segment as World Holdings has acquired
the shares of Dimples Co., Ltd. and made it a consolidated subsidiary. The event caused the amount of
goodwill to increase by 3,271 million yen during the first three months of 2022.
Significant gain on bargain purchaseNot applicable.
II. First three months of 2023 (Jan. 1 – Mar. 31, 2023)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Products
Human
Resources
Business

Services
Human
Resources
Business

Real EstateBusiness

Information
andTelecommunications
Business

Agricultural
Park
Business

Subtotal

Amounts shownon quarterly
Adjustments
consolidated(Note 1)statement ofincome(Note 2)

Net sales
Sales toexternal
23,450
10,484
7,027
1,948
813
43,72443,724
customers
Inter-segment
sales and
152
42
8
17
2
223
(223)
transfers
Total
23,602
10,527
7,035
1,966
816
43,947(223)
43,724
Segment
918
14
906
(69)
(117)
1,651
283
1,934
profit (loss)
Notes: 1. The 283 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 8
million yen, and 274 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 (loss) is adjusted 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
Not applicable.
Significant gain on bargain purchaseNot applicable.

10

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

Subsequent Events
At a meeting of the Board of Directors held on April 20, 2023, World Holdings Co., Ltd. resolved to acquire all of
the shares of Nippon Gijutsu Center Co., Ltd. and make it a subsidiary, and entered into a share transfer
agreement on the same day. The shares are scheduled to be acquired on May 22, 2023.
(1) Reason for the acquisition
The core Human Resources and Education Business of World Holdings has developed human resources services
in the manufacturing sector that cover a wide range of areas from upstream to downstream and include R&D,
technology, manufacturing and after service. The goals are to continue creating the “ways we live” and provide
places in a variety of sectors for people to enable them to realize their full potent ial while supporting Japan’s
manufacturing sector.
Nippon Gijutsu Center Co., Ltd., with a history going back 55 years, has a large staff of engineers specializing in
advanced machinery design, and is also developing staffing service for major companies in the manufacturing andtechnology sectors. Nippon Gijutsu Center also provides outsourcing service in technical areas such as machinery,electricity, electronics, and software. The company has a particularly strong presence in the Kansai region.
The acquisition will create synergy in various areas. The knowhow and business network of World Holdings will
help Nippon Gijutsu Center to expand its business while at the same time strengthen our core Human Resources
and Education Business, particularly technical services in the products HR business. We are confident that theacquisition will also strengthen our presence in Western Japan and become a driver of further growth of bothcompanies.
All activities of the World Holdings Group will continue to be guided b y the group’s purpose of “contributing tohappiness and a sustainable society through the creation of a variety of ways we live worldwide.” We will ensurethat people working at Nippon Gijutsu Center will be able to fully demonstrate their skills and exper ience, play
an active role, and contribute to the further development of the manufacturing industry in Japan.
(2) Name of seller
Yukon No. 1 Investment Limited Partnership, and other(3) Profile of the company to be acquired
Name:

Nippon Gijutsu Center Co., Ltd.

Business: Technology support business (technology services outsourcing service, staffing for manufacturing andengineering companies)
Capital: 50 million yen(4) Stock acquisition date
May 22, 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:

24,200 shares

Acquisition cost:

5,576 million yen

Number of shares to be held after acquisition:

100%(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.

11