Consolidated Financial Results for the Second Quarter of 2024
(Six Months Ended June 30, 2024)[Japanese GAAP]
August 6, 2024

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange
Stock code:
2429
URL: http://www.world-hd.co.jp
Representative: Eikichi Iida, Chairman and President
Contact:
Shigeru Nakano, Director, Business Management Division Manager
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
August 9, 2024
Scheduled date of payment of dividend:
Yes
Preparation of supplementary materials for financial results:
Yes (for institutional investors and analysts)
Holding of financial results meeting:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Six Months of 2024 (January 1 to June 30, 2024)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%

110,805
Six months ended Jun. 30, 2024
90,461
Six months ended Jun. 30, 2023
Note: Comprehensive income (millions of yen)

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

Million yen%

Million yen%

Million yen

22.5
2,358 (36.0)
2,381 (34.7)
4.9
3,685 (20.4)
3,645 (23.1)
Six months ended Jun. 30, 2024: 959 (down 55.4%)
Six months ended Jun. 30, 2023: 2,151 (down 20.8%)

737
2,013

%

(63.4)(21.0)Net income per share Diluted net income per share
Six months ended Jun. 30, 2024
Six months ended Jun. 30, 2023

Yen

Yen

41.83
114.7941.72
114.27(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

162,647
43,144As of Jun. 30, 2024
159,204
42,926
As of Dec. 31, 2023
Reference: Shareholders’ equity (millions of yen)
As of Jun. 30, 2024: 40,380

Yen

24.8
2,256.81
25.3
2,290.86
As of Dec. 31, 2023: 40,259

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

3Q-endYear-end

Total

Yen

Yen

Yen

Yen

2023
0.00
2024
0.00
2024 (forecast)
Note: Revisions to the most recently announced dividend forecast: None-

106.00106.00

-

80.90

80.90

3. Consolidated Forecast for 2024 (January 1 to December 31, 2024)
Net sales
Million yen

Operating profit%

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

Ordinary profit%

Million yen%

Yen

Full year
252,085 17.9
9,003 (13.1)
8,622 (15.9)
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

4,738(23.6)

270.05

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): Yes
Newly added: 1 (Sankin Kaihatsu Co., Ltd.)

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, 2024:

18,006,300 shares

As of Dec. 31, 2023:

17,657,300 shares

As of Dec. 31, 2023:

113,631 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2024:

113,683 shares

3) Average number of shares during the period
Six months ended Jun. 30, 2024:

17,637,043 shares

Six months ended Jun. 30, 2023:

17,538,746 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 Friday, August 9, 2024.
Supplementary materials to be distributed at this event will be disclosed on the same day, using the Timely Disclosure network(TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

Contents of Attachments
1. Overview of Results of Operations, Etc.

2(1) Results of Operations for the First Half of 2024

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

Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

12

Segment Information

12

Significant Changes in Shareholders’ Equity

13

Going Concern Assumption

13

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

1. Overview of Results of Operations, Etc.
(1) Results of Operations for the First Half of 2024
During the first half of 2024, the economic recovery in Japan stalled due to consumer spending pressure from highprices and a slowdown in Chinese and other overseas economies, as well as the impact of the Noto Peninsula
earthquake at the beginning of 2024 and shutdowns in the automobile industry. The primary business environment
surrounding the World Holdings Group continued to be challenging. The semiconductor industry remains stagnant
despite expectations for a recovery to start in the second half of 2024, and prices remained high in the real estateindustry.
Under these circumstances, the Group’s core Human Resources and Education Business adapted with flexibility tochanges in market conditions through flexible personnel transfer, labor management, cost controls, and othermeasures. In the Real Estate Business, despite higher sales with lower profits, we significantly exceeded the initialplan, especially in terms of profitability, due to solid performance achieved by activities including the strategic
growth of sales from recurring revenue businesses.
Net sales increased 22.5% year on year to 110,805 million yen (up 1. 1% vs. plan). Operating profit decreased
36.0% to 2,358 million yen (up 98.3% vs. plan), ordinary profit decreased 34 .7% to 2,381 million yen (up 135.6%
vs. plan), and profit attributable to owners of parent deceased 63.4% to 737 million yen (up 190.4% 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 performance was as follows.
Manufacturing Human Resources Business
The Manufacturing Human Resources Business faced adverse circumstances from the start of the year resulting
from continued stagnation in the semiconductor industry from the previous year, the Noto Peninsula earthquake atthe beginning of 2024, and operational shutdowns in the automobile in dustry. However, this business respondedwith flexibility to changes in market conditions by leveraging its strength in covering multiple sectors whiletransferring personnel to various industries. As a result, sales were higher than in the first half of 2 023 and exceeded
the plan.
Profits decreased because of higher expenses caused by personnel transfer and for other reasons. Despite thisdecline, profits significantly exceeded the initial plan because of cost controls including efficiency improvements
through digital transformation and a temporary reduction in recruiting activities. More growth is planned by making
big expenditures for recruiting and training activities to target opportunities to be created by the recovery in thesemiconductor industry expected to start in the second half of 2024.
Training programs for the semiconductor industry have been a priority of this business. The planned opening at theend of 2024 of the Kumamoto Technical Center, which is a training facility in Ozu-machi in Kumamoto Prefecture,
will further speed up programs to give people skills required in the semiconductor industry.
Sales were 53,121 million yen, up 10.8% year on year (up 4.0% vs. plan) and segment profit decreased 28.8% to
1,175 million yen (up 84.6% vs. plan).
Services Human Resources BusinessIn the Service Human Resources Business, our mainstay logistics division saw steady growth in the e-commerce
sector and a contribution to results from Yamato Staff Supply Co, Ltd., which we welcomed into the Group lastyear. In the customer service sales division, sales and profits increased by accurately targeting opportunities
associated with seasonal changes in demand at client companies.
In addition, profits exceeded the initial plan partially due to the solid p erformance of the new Staffing Order andManagement Agency Service which leverage our accumulated expertise in labor management in the logistics
division.
2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

The goal of this business is to continue growing. One step is the use of outsourced distribution ware house operation
knowhow for the horizontal expansion of this business model. Another step is to seek opportunities in new
businesses beyond the traditional human resources domain.
Sales were 36,971 million yen, up 72.6% year on year (down 0.3% vs. plan) and segment profit increased 247.8%
to 545 million yen (up 141.7% vs. plan).
Real Estate BusinessIn the Real Estate Business, amid persistently high real estate prices, we have been cautiously developing ourbusiness to ensure optimum timing for both purchasing and sales. Sales and profits decreased because of the smaller
number of properties sold during the first half. However, profits were far above the plan. The main reason is rental
income from properties purchased in prior years and rental income resul ting from the continuing strategicacquisition of properties for the real estate sales business that are currently leased to tenants. For consistent growth,
this business is continuing to aim for the growth of property sales as well as of businesses that g enerate recurring
revenue.
The plan for the current fiscal year is to deliver numerous properties in the second half, especially in the fourth
quarter, and we are making good progress with contracts. The main condominium properties planned for this fiscal
year are Residential Oji Kamiya in Tokyo; Asuto Residential The Tower in Miyagi Prefecture, which is a joint
venture project with Nomura Real Estate Development Co., Ltd; and Residential Midosuji Abiko in Osaka
Prefecture. For office buildings, we are planning developments such as BIZIA KOKURA, promoted as the leading
project of Kokura Kurosaki Rebitation (Rebuild+Invitation) in Kitakyushu City, Fukuoka Prefecture.
Sales were 13,634 million yen, down 6.1% year on year (down 8.5% vs. plan), and segment profit was 308 million
yen, down 75.6% (up 382 million yen vs. plan).
Information and Telecommunications BusinessIn the Information and Telecommunications Business, with the mobile phone sales agency industry undergoing aperiod of major change, sales and profits increased, significantly exceeding the initial plan, especially in terms of
profitability because of activities targeting opportunities created by pent -up demand resulting from amendments to
the Ordinance for Enforcement of the Telecommunications Business Act and other regulations.
While continuing to use a scrap-and-build approach to the mobile stores to improve efficiency, we are leveraging
the segment’s existing strengths in the corporate solutions sector and connecting them to strengthen the corporate
sales team within the mobile shop. In so doing, the Group aims to enhance its presence and grow once more as aregional problem-solving base for both individuals and corporate customers.
Sales were 4,353 million yen, up 4.5% year on year (up 7.8% vs. plan), and segment profit increased 530.8% to 97
million yen (up 153.1% vs. plan).
Agricultural Park Business
Sales and profits in the Agricultural Parks Business increased and were higher than planned. Performance benefited
from the mild winter with little rain and good weather during the Golden Week holiday period, the busiest time of
the year. Major renovations and upgrades of existing facilities during 2023 also contributed to growth in visitor
numbers.
Operations started in April at five locations where we were designated as the new manager: Saitama City Urban
Park Groups 8 and 10, Hyogo Prefectural Awaji Cultural Hall, Kobe Port Waterfront Area (Meriken Park Harborland Square), and Ring Ring Port Tsuchiura. Furthermore, parks made preparations for the second half of2024 that included the maintenance of facilities for attracting visitors during the summer.
Sales were 2,724 million yen, up 13.6% year on year (up 11.8% vs. plan), and segment profit increased 39.4% to171 million yen (up 74.2% vs. plan).

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

Overview of Business Results by Segment(Millions of yen)

Human
ResourcesandEducation
Business

First half of First half of First half of
2023
2024
2024
ResultPlan
ResultVs. planAmountYear-on-year change%

Amount%Net sales
ManufacturSegment
ing Human
profitResources(ProfitBusinessmargin)47,94651,08753,121

2,033

4.0%

5,174

10.8%

1,650

636

1,175

538

84.6%

(475)

(28.8)%(3.4%)(1.2%)(2.2%)Net sales

21,42437,08836,971(117)(0.3%)

15,546

72.6%

156

225

545

320

141.7%

388

247.8%(0.7%)(0.6%)(1.5%)Net sales

69,37088,17690,092

1,916

2.2%

20,721

29.9%

Segment
Subtotal
profit(Reference)(Profitmargin)

1,807

862

1,721

858

99.6%

(86)

(4.8)%(2.6%)(1.0%)(1.9%)

14,526

14,895

13,634(1,260)(8.5)%(891)(6.1%)

1,264

(74)

308

382

-

(956)

(75.6%)(8.7%)-(2.3%)

4,165

4,038

4,353

314

7.8%

187

4.5%

15

38

97

59

153.1%

82

530.8%(0.4%)(1.0%)(2.2%)

2,398

2,437

2,724

287

11.8%

326

13.6%

122

98

171

72

74.2%

48

39.4%

(5.1%)(4.0%)(6.3%)

90,461

109,547

110,805

1,258

1.1%

20,343

22.5%

475

264

60

(204)

(77.3)%(415)(87.4)%

3,685

1,189

2,358

1,168

98.3%

(1,327)(36.0)%(4.1%)(1.1%)(2.1%)

Services
Human
Resources
Business

Segment
profit(Profitmargin)Net sales
Real Estate Real EstateBusiness
Business

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

Total

Eliminationor corporate
Operatingprofit(Profitmargin)4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

(2) Explanation of Financial Position
AssetsTotal assets increased 3,443 million yen from the end of 2023 to 162,647 million yen at the end of the second
quarter of 2024. This was mainly due to increases of 3,281 million yen in real estate for sale and 1,128 million yen
in real estate for sale in process.
Liabilities
Total liabilities increased 3,225 million yen from the end of 2023 to 119,503 million yen. This was mainly due toan increase of 5,079 million yen in long-term borrowings, and decreases of 1,321 million yen in accounts payablereal estate business and 453 million yen in short-term borrowings.
Net assets
Net assets increased 218 million yen from the end of 2023 to 43,144 million yen, mainly due to increases of 573
million yen in share capital, 573 million yen in capital surplus and 52 million yen in non-controlling interests, anda decrease of 1,121 million yen in retained earnings.
Cash FlowsThe balance of cash and cash equivalents for the current interim consolidated accounting period was 41,349 million
yen, an increase of 501 million yen compared to the end of the previous conso lidated fiscal year.
Cash flows from operating activities
Net cash used in operating activities was 2,354 million yen. Main positive factors include interim net income before
taxes of 2,381 million yen, a decrease in trade receivables of 1,509 million yen, an increase in advances receivedof 497 million yen, and a refund of corporate taxes of 405 million yen. Major negative factors include an increaseof 4,409 million yen in real estate for sale, a decrease of 1,157 million yen in trade payables , and corporate taxes
paid of 2,083 million yen.
Cash flows from investing activities
Net cash used in investing activities was 829 million yen. Main negative factors include payments of 354 million
yen for the acquisition of property, plant and equipment, 172 million yen for loans, and a net increase of 245 million
yen in lease and guarantee deposits.
Cash flows from financing activities
Net cash provided by financing activities was 3,555 million yen. The main positive factors were a net increase of
5,590 million yen in short-term borrowings, 5,144 million yen in proceeds from long-term borrowings, and 898
million yen in proceeds from the issuance of shares. The main negative factors were 6,115 million yen in
repayments of long-term borrowings and 1,862 million yen in dividend payments.
(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 2023” on February 9, 2024.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of 2024
(As of Jun. 30, 2024)

2023(As of Dec. 31, 2023)
AssetsCurrent assets
Cash and deposits

40,84841,377

Notes and accounts receivable-trade25,14823,667

Merchandise and finished goods

776

1,049

Real estate for sale

9,928

13,209Work in process

241

350

Real estate for sale in process

52,33553,464

Other

4,672

4,938

Allowance for doubtful accounts

(7)

(10)

133,944

137,508

9,714

9,640

9,210

8,669

273

265

9,484

8,934

Investment securities

1,579

1,631

Leasehold and guarantee deposits

1,532

1,777

Deferred tax assets

2,213

2,276

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

Retirement benefit asset
Other

15

120

1,150

1,189

Allowance for doubtful accounts

(430)

(431)

Total investments and other assets

6,061

6,564

Total non-current assets

25,26025,139159,204

162,647

Notes and accounts payable-trade

1,186

1,370

Accounts payable-real estate business

1,749

427

Short-term borrowings

45,88345,430Accrued expenses

13,267

13,902

Advances received

1,002

1,500

Income taxes payable

2,239

1,692

Accrued consumption taxes

4,083

2,943

426

856

Total assets
Liabilities
Current liabilities

Provision for bonuses
Other

6,918

6,419

Total current liabilities

76,75774,543Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability

32,89337,972

201

196

3,967

4,357

Other

2,459

2,434

Non-current liabilities

Total non-current liabilities
Total liabilities

6

39,52144,960116,278

119,503

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

(Millions of yen)
Second quarter of 2024
(As of Jun. 30, 2024)

2023(As of Dec. 31, 2023)
Net assets
Shareholders’ equity
Share capital

1,350

1,924

Capital surplus

1,540

2,114

Retained earnings

37,46336,341

Treasury shares

(119)

(119)

Total shareholders’ equity

40,23440,26051

83

Accumulated other comprehensive income
Valuationdifferenceonavailable-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

57

104

(83)

(68)

25

120

Share acquisition rights

58

102

Non-controlling interests

2,608

2,661

Total net assets
Total liabilities and net assets

7

42,92643,144

159,204

162,647

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

(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 2024
(Jan. 1 – Jun. 30, 2024)

First six months of 2023
(Jan. 1 – Jun. 30, 2023)
Net sales

90,461

110,805

Cost of sales

74,675

94,104Gross profit

15,786

16,701

Selling, general and administrative expenses

12,10014,343Operating profit

3,685

2,358

Interest and dividend income

47

10

Subsidy income

19

16

Other

75

310

Total non-operating income

142

337

140

204

Non-operating income

Non-operating expenses
Interest expenses
Other

42

110

Total non-operating expenses

182

314

3,645

2,381

Insurance claim income-

1

Total extraordinary income

-

1

1

0

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disaster10Profit before income taxes

Total extraordinary losses

3,644

2,381

Income taxes

1,578

1,536

Profit

2,066

844

53

107

2,013

737

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

8

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Millions of yen)First six months of 2024
(Jan. 1 – Jun. 30, 2024)

First six months of 2023
(Jan. 1 – Jun. 30, 2023)
Profit2,066

844

Valuation difference on available-for-sale securities

26

32

Foreign currency translation adjustment

33

67

Remeasurements of defined benefit plans, net of tax

24

14

Total other comprehensive income

84

114

2,151

959

2,089

832

62

127

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

(3) Quarterly Consolidated Statement of Cash Flows(Millions of yen)First six months of 2024
(Jan. 1 – Jun. 30, 2024)

First six months of 2023
(Jan. 1 – Jun. 30, 2023)
Cash flows from operating activities
Profit before income taxes

3,644

2,381

Depreciation

453

501

Amortization of goodwill

303

541

Increase (decrease) in allowance for doubtful accounts(0)3

Decrease (increase) in retirement benefit asset

－

(104)

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Interest and dividend income

319

375

(12)

(5)

(47)

(10)

Interest expenses

140

204

Loss on retirement of non-current assets

0Decrease (increase) in trade receivables

378

Decrease (increase) in inventories

1
1,509

(667)

(412)

(8,964)(4,409)

Increase (decrease) in trade payables

154(1,157)

Increase (decrease) in advances received

(60)

497

Decrease (increase) in real estate for sale

Increase (decrease) in accrued expenses

(349)

591

(1,264)(1,089)

Increase (decrease) in other current liabilities

(335)

(581)

Other, net

(844)

688

Subtotal(7,150)(474)

Increase (decrease) in accrued consumption taxes

Interest and dividends received
Interest paid

47

5

(144)

(208)

(2,427)(2,083)144

405(9,530)(2,354)

Payments into time deposits

-

(27)

Proceeds from withdrawal of time deposits

Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities

13-

Purchase of property, plant and equipment

(349)

(354)

Purchase of intangible assets
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Purchase of investments in non-consolidated subsidiary

(69)

(41)

14

-

(4,822)

-

(15)

(3)

Payments for acquisition of businesses

(42)

-

Loan advances

(65)

(172)

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

-

96

(6)

(245)

Other, net

(21)

(81)

(5,365)(829)

Net cash provided by (used in) investing activities

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

(Millions of yen)First six months of 2024
(Jan. 1 – Jun. 30, 2024)

First six months of 2023
(Jan. 1 – Jun. 30, 2023)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Proceeds from long-term borrowings

2,880

5,590

(13)

-

13,424

5,144

Repayments of long-term borrowings(2,358)(6,115)(4)(11)

Proceeds from issuance of shares

18

898

Purchase of treasury shares

(0)

(0)

(1,603)(1,862)

(27)

(87)

12,315

3,555

35

54

Net increase (decrease) in cash and cash equivalents(2,544)425

Cash and cash equivalents at beginning of period

35,07840,848-75

32,533

41,349

Repayments of lease obligations

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

Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

(4) Notes to Quarterly Consolidated Financial Statements
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 2023 (Jan. 1 – Jun. 30, 2023)
1. Information related to net sales and profit or loss for each reportable segment
Reportable segment
Manufacturing Human
Resources
Business

Services
Human
Resources
Business

47,94621,424

14,526

4,165

2,398

90,461-

90,461

312

88

10

28

6

446

(446)

-

Total

48,25821,512

14,537

4,194

2,405

90,908(446)

90,461

Segment profit

1,650

156

1,264

15

122

3,210

475

3,685

Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers

Information
Real EstateandBusiness
Telecommunications
Business(Millions of yen)Amounts shownon quarterly
Adjustments
consolidated(Note 1)statement ofincome(Note 2)Agricultural
Park
Business

Total

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

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 “Manufacturing Human Resources Business” segment as World Holdings has
acquired the all shares of Nippon Gijutsu Center Co., Ltd., and Nippon Gijutsu Center and its subsidiary areincluded in the scope of consolidation. The event caused the amount of goodwill to increase by 4,545 million
yen during the first six months of 2023.
Significant gain on bargain purchaseNot applicable.

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WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2024

II. First six months of 2024 (Jan. 1 – Jun. 30, 2024)
1. Information related to net sales and profit or loss for each reportable segment
Reportable segment
Manufacturin Services
g Human
Human
Resources
Resources
Business
Business
Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers

Information
Real EstateandBusiness
Telecommunications
Business

Agricultural
Park
Business

Total(Millions of yen)Amounts shownon quarterly
Adjustments
consolidated(Note 1)statement ofincome(Note 2)

53,121

36,971

13,634

4,353

2,724

110,805-

110,805

331

81

16

42

7

479

(479)

-

Total

53,45237,052

13,651

4,396

2,732

111,285(479)

110,805

Segment profit

1,175

545

308

97

171

2,298

60

2,358

Notes: 1. The 60 million yen adjustment to segment profit includes elimination for inter-segment transactions of 16 million
yen, and 43 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 the reportablesegments.
2. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated statement ofincome.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Not applicable.
Significant gain on bargain purchaseNot applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Going Concern Assumption
Not applicable.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepar edin accordance with accounting principles and practices generally accepted in Japan, for the convenience of reader s who prefer
an English translation.

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