Interim
Business Report

2019

January 1

June 30, 2019

To Our Stakeholders

Creating the “Ways We Live”

01

Interview with the President

Using co-sourcing to help
create value in new ways
for manufacturing in Japan
04 Consolidated Financial Results

09 Topics

05 Core Strategy for

10 Corporate Data/

the Human Resources andEducation Business
07 Business Segment Overview
Securities Code: 2429/TSE 1st Section

Stock Information

Interview with the President
1H FY12/2019: Overview of Business Activities

First half net sales and earnings were higher than one year earlier and surpassed theforecasts despite an increasingly uncertain economic outlook. World Holdings
continued to focus on its core strengths while looking ahead to long-range goals. In
addition, first half activities were based on achieving a suitable scale of operations inorder to reflect changing market conditions.

Eikichi Iida

the upcoming enactment in April 2020 of the Equal
Work, Equal Pay Principle.
In recent years, World Holdings has been using its
own initiatives in order to do more than simply meet theincreasing demand for temporary placements forautomobile assembly and other manufacturing tasks.
One major initiative is strengthening skills to createcomprehensive subcontracting proposals for electronic
components and semiconductors used for automotive
and other applications.
We have a distinctive training scheme for a workforce
that encompasses a broad spectrum of fields.
Increasing the skills of people specializing in aparticular industry or job is one goal. We are alsobuilding teams of specialists who are highly skilled in

Overview of the Human Resources and Education
Business
Economies worldwide generally became weaker during
the first half, including slower growth in China due to the
U.S.-China trade war. Global economic events arehaving a negative effect on Japan, especially in the
manufacturing sector. Furthermore, sentiment at
Japanese companies is declining in part because of therising labor cost caused by Japan’s tight labor supply.
In Japan’s manufacturing sector, demand is
beginning to grow for new human resource solution
services which comply with laws and regulations. One
reason is the enactment of laws concerning work-stylereforms. There are also the revisions to the Worker
Dispatching Act and the Immigration Control Act, andChairman and PresidentCore strategy for positioning of the Human Resources andEducation Business

Using co-sourcing to help
create value in new ways for
manufacturing in Japan

Target new business domains by adding expertise in sectors requiring advanced
technologies and skills and building a powerful workforce
Temporary placement

Technical skill High

Advanced skills
Temporary placements forresearch and technology
tasks

Individuals

World Holdings has made organic growth its core strategy in response to changes in thebusiness climate. The new focus is a growth trajectory unique to World Holdings that iscentered on the Human Resources and Education Business and the Real Estate Business.
Chairman Iida explains the reasons for this strategic shift and the Company’s objectives.

01

Subcontracting
Manufacturing operations

Co-sourcing

Temporary team placements

Subcontracting (large projects)

Human Resources Platform

Our teams can perform outsourced
tasks involving designing, development,
production, and other key operations
at manufacturers.

Current domains where
World Holdings competes

Volume zone

Teams

Seeking for growth in the number of contracts

The goal is not a larger
scale of operations
Technical skill Low

Temporary work

Composition of Temporary Placement
Workforce (3-month average) in the Human
Resources and Education Business
1H
FY12/2017end

1H
FY12/2018end

1H
FY12/2019end

Factory Staffing

12,761

15,622

15,609-0.1%

Technology Staffing

2,037

2,328

2,639

+13.4%(Unit: People)

YoY
Changes

995

1,052

1,093

+3.9%

Sales & Marketing

2,502

1,191

1,362

+14.4%

Total

18,29520,19320,703+2.5%

R&D Staffing

technologies and other capabilities needed in manyindustries. Another initiative is creating a platform foropen technologies and people. All of these activities are
aimed at two goals. One is going beyond market
domains where we compete now by establishing a
distinctive position for ourselves as a supplier of people
with an even higher level of specialized knowledge. The
other goal is becoming more profitable from a mediumto long-term perspective.
During the first half, the performance of the Factory
Staffing Business was impacted by a decline in orders
received from some smartphone-related clientcompanies. But sales were higher than one year earlier
mainly because of the consistent growth of the Logistics
Staffing Business.
The performance of the Technology Staffing Businessbenefited from the success of the Creating the Ways We
Live Academy, where skill enhancement programs andcourses for relearning new technologies are provided.
Many mechanical design engineers, mainly in theautomobile industry, have completed training at theacademy. There were also measures to strengthen
system engineer training and sales operations. The result
was more clients, a larger scale of operations and higher
unit contract prices in the Technology Staffing Business.
The R&D Staffing Business served an increasing
number of clients in the materials, synthetic chemicals,
analysis and other fields by hiring carefully selected
people with outstanding skills. Furthermore, we use joint
research laboratories with partner universities to give
people training involving the latest advances. Our goalis assembling a team of R&D personnel who excel interms of technological and people skills. The opportunity
to gain new knowledge is a key source of motivation for
our R&D personnel. We plan to use this powerful teamof scientists in order to firmly establish ourselves as atechnology support company rather than simply aprovider of temporary staffing services.
Due to these activities, the temporary placement
workforce in the Human Resources and Education
Business increased, mainly to meet demand for people
with advanced technologies and skills. The result wassegment sales of ¥37,333 million, 5% more than one year
earlier. The segment profit was down 1.8% to ¥2,142 million
mainly because of ¥304 million of strategic investments,
chiefly for training programs, for growth in the future.
Overview of the Real Estate BusinessJapan’s real estate price bubble is lasting longer than
expected as property values remain high. The Real EstateBusiness consists of businesses that generate sales fromindividual projects, such as the development ofcondominiums and the sale of detached houses, andrecurring-revenue businesses like renovations and1H FY12/2019 Results and FY12/2019 Forecasts
1H FY12/2019
Profitmargin(%)

Actual(¥ million)

Human Resources Net sales
and Education
Segment
Business

37,333

profit2,142

Net sales

20,377

Segment
profit1,227

Net sales
Information andTelecommunications
Segment
Business

6,999

Net sales

2,117

Segment
profit196

Real EstateBusiness

profitOthersTotal

48

FY12/2019
YoY(%)

Forecasts(¥ million)+5.0%

83,361

5.7%

-1.8%

5,617

-0.2%

56,063

6.0%+56.5%

2,753

+3.8%

12,0190.7%-33.4%

157+26.4%

4,008

ー

45

9.3%

Net sales

66,827+3.8%

155,452

Eliminationor corporate(1,086)ー(2,525)

Operatingprofit2,529+26.2%

6,049

3.8%

02

Profitmargin
(%)

6.7%

4.9%

1.3%

1.1%

3.9%

property management. I believe that now is the time tohold down our condominium development activities inorder to achieve a suitable scale of operations.
In every business segment, I believe that we need toestablish a suitable scale of operations in order to reflect
the changes in the market conditions. Right-sizing theReal Estate Business is of particular importance becauseof the large magnitude of changes in this market. Japan’s
prolonged real estate price bubble means that we must
reduce the scale of our purchasing activities. In addition,
we are focusing on properties that can be easily used formany purposes. In sum, we now have an extremely
cautious stance about real estate.
In the first half of fiscal 2019, sales and earnings in thissegment were higher than the forecasts. There was asmall decrease of 0.2% in sales to ¥20,377 million.
However, segment profit increased 56.5% to ¥1,227
million as we completed the closing of sales of someproperties earlier than planned.
The New Medium-term Management Plan
2021 – A Rolling Plan

To succeed as the business climatechanges, World Holdings is pursuing asound strategy of growth by using its
own resources without aiming for
growth that cannot be justified.
The Rolling Plan
Net sales and earnings have been generally consistent
with the New Medium-term Management Plan 2021, whichstarted in fiscal 2017. However, the market conditions
have changed significantly since fiscal 2017, mainly withrespect to the higher cost of M&A deals and the extended
real estate price bubble. We believe this is not the proper
time to establish any unreasonable goals for growth. This
is why we have revised part of the plan’s basic strategy.
We now have a rolling plan with the goal of sound growthin fiscal 2020 and fiscal 2021 that uses our own resources
and reflects our unique identity and strengths.

Interview with the President

Financial Highlights (1H FY12/2019)
Looking back on our history, I believe that our
greatest strength is the ability to start core businesses
entirely on our own. Using mergers and acquisitions
makes it possible to launch businesses vertically. But
the experience has taught me that adding companies toour group that are not fully aligned with our philosophy
is unlikely to create more corporate values.
For example, we have operated the Factory,
Technology and R&D Staffing Businesses since ourestablishment. Over many years, we have created teams
of well-trained people backed by a sound businessframework in each of these businesses. As thesebusinesses grew, we did not acquire companies solely forthe sake of growth. All companies that joined our Group
were selected because they added a new businessdomain or were a new source of growth. Furthermore,
every company agreed with our corporate philosophy.
Through the years, and especially in this uncertain
business climate, we have been firmly committed to our
corporate vision of creating the “ways we live.” I am
convinced this is the right guideline for achieving asustained growth. This is why all of our businesses areaiming for a suitable scale of operations. As a result, wehave revised our numerical targets for fiscal 2021, thecurrent plan’s final year, based on the premise ofoperating on a scale that can be supported by our own
resources.

The Rolling Plan Targets for FY12/2021
Before rolling

After rolling

Changes

Net sales

200

175

(25)

Operating profit

10

8

(2)

(Unit: ¥ billion)

5.0%

4.7%

-0.4%

ROE

20%

20%

ー

Dividend payout ratio

30%

30%

ー

Operating margin

Note: The main reason for the revisions to the plan is to strengthen the risk
management associated with the unexpectedly large and prolonged asset pricebubble in Japan’s real estate market, which affects the Real Estate Business.

Our Unique Identity and Strengths

Dedicated to becoming a true “cosourcing” partner by using the growthof our people to respond to big changes
in Japan’s manufacturing sector
For the past 25 years, we have been explaining theadvantages of our “co-sourcing” business model to ourmanufacturing clients. This collaboration entails theconvergence of the manufacturing strengths of ourclients and our strengths involving the use of people,
which is backed by many years of experience.
Combining strengths results in a powerful team that canoperate highly competitive businesses.
When we began promoting this business model, we
attempted to implement “co-sourcing” with
manufacturers where we had comprehensive service
agreements. Unfortunately, we soon had to abandon
our original approach. There was no change in what ourclients required. They needed us for a flexibility
regarding fluctuations in production volume and forsupplying people for limited periods.
We took another look at the “co-sourcing” concept.
There was no change in our determination to be a true
partner for our manufacturing clients. However, there has
recently been a big change in the thinking of the executesof manufacturers in Japan. More and more companies
want to use a partner who has the same values in order tocreate businesses that can compete and win worldwide.
Over the next few years, I believe that the advancement
and enlargement of the capabilities of our workforce will
become a foundation that can underpin the growth of ourclient companies. We must closely monitor this change as
we remain committed to our philosophy. Most importantly,
we need to become an organization able to design withflexibility businesses that can reflect shifts in our businessclimate. World Holdings is always looking far ahead toanticipate change and building the groundwork forredefining itself in order to succeed. I ask for yourcontinued support as we continue to take these actions.
03¥66,827

Net sales

millionYoY:

3,8%
155,452

41,6081H FY12/
2016

56,85364,37966,827

1H FY12/2017

1H FY12/2018

1H FY12/2019

Operating profit¥2,529millionYoY:

FY12/2019(Forecast)

26.2%
6,049

2,111

2,981

1H FY12/2016

1H FY12/2017

Ordinary profit

2,529

2,005
1H FY12/2018¥2,5291H FY12/2019

millionYoY:

FY12/2019(Forecast)

26.4%
5,910

2,088

1H FY12/
2016

2,950

1H FY12/2017

Profit attributable toowners of parent

2,529

2,001
1H FY12/2018¥1,685

1H FY12/2019

millionYoY:

FY12/2019(Forecast)

56.2%
3,672

2,061
1,199

1H FY12/
2016

1,079
1H FY12/2017

1H FY12/
2018

1,685

1H FY12/2019

FY12/2019(Forecast)Consolidated Financial Results
Consolidated Balance Sheet (¥ million)

Consolidated Cash Flows (¥ million)

AssetsLiabilities and net assets

Current assets

Non-current assets

Cash and deposits
Notes and accounts
receivable-trade
Real estate for salein process

18,825Current liabilities
Net assets

79,964

Cash and deposits
Notes and accounts
receivable-trade
Real estate for salein process

11,252
21,124

69,823
Property, plant andequipment
Intangible assets
Investments andother assets

82,076
10,491
23,444

46,13049,508

5,686
1,039

11,485

9,923

22,34722,644

Property, plant andequipment
Intangible assets
Investments andother assets

3,342

Cash andcash equivalents
at beginning of
periodCash flows
from operating
activities

18,824(5,129)

10,117

Cash flows
from financing
activities

Cash andcash equivalents
at end of period

2,745

15,525

Cash flows
from investing
activities

3,391

FY12/2018-end 1H FY12/2019-end

Highlights

82,076

79,964

15,52571,958

5,439
1,359

10,140Non-current liabilities(980)

FY12/2018-end 1H FY12/2019-end

1H FY12/2019

Total assets increased ¥2,112 million from the end of fiscal 2018 to ¥82,076 million. This was mainly due to a ¥3,299 million decreasein cash and deposits, and increases of ¥4,509 million in real estate for sale and ¥2,319 million in real estate for sale in process.
Total liabilities increased ¥1,815 million from the end of fiscal 2018 to ¥59,432 million. This was mainly due to a ¥5,328 million
increase in short-term borrowings and a ¥1,131 million decrease in long-term borrowings.

Highlights

Net cash was used in operating activities mainly for the purchase ofreal estate for sale. Net cash was provided by financing activities
mainly because of a net increase in short-term borrowings andproceeds from long-term borrowings.

Net sales

Consolidated Statement of Income (¥ million)

66,827
OperatingprofitNet sales

2,529

64,379
Cost of sales

53,638
SG&A
expenses
OperatingprofitOrdinary
profit

2,005

2,001

Non-operating
incomeOrdinary
profit140

Extraordinary
income83

2,529Highlights

2,596
Extraordinary
lossesNon-operating
expensesProfitProfitattributable to attributable tonon-controlling owners ofinterests
parent

17

140

49

10,659Total income
taxes

861

Profitattributable toowners ofparent1,079

1H FY12/2018

Profit before
income taxes

1H FY12/2019

04

1,685

In the core Human Resources
and Education Business, theperformance was in line with thefiscal 2019 business plan even as
investments for future growthcontinued. The plan accuratelyreflects the current operating
environment. Net sales andearnings were higher in part
because sales of someproperties closed earlier thanplanned and the sales activities
strengthened in the Real EstateBusiness.

Core Strategy for the Human Resources and Education Business

Rolling to Create the New Medium-term Management Plan 2021

We want to become the leading brand in the manufacturing sector
through internally driven growth backed by our distinctive strengths.
Increasingly heated global competition is altering the business landscape. In addition, many companies are beginning to take significant actions concerning work-style reforms. Executives atmanufacturers are starting to adopt a different mindset as a result. Outsourcing is now widely viewed as one of the options for strategic initiatives. We believe these trends will require humanresource services companies to provide specialized services at an even higher level. We remain committed to growth. However, we have reexamined our core strategy. We will use ourinternal resources rather than going after M&A deals that are not economically viable due to the unexpectedly sharp upturn in prices paid for acquisitions, including in the manufacturing sector.

Evolving to deliver outsourcing services
no competitor can match
To become the preeminent brand in the manufacturing sector,
we are giving our people training for upgrading to tasks in
categories that demand more advanced skills andtechnologies. Another goal is building an organization withexcellence in management and other skills that are required
for superior outsourcing services. We are determined to serve
as a true partner for Japanese manufacturers in order to makeour “co-sourcing” concept a reality. The ultimate objective isthe establishment of a stable foundation for business
operations that is not vulnerable to fluctuations of theeconomy.
At World Holdings, the evolution of outsourcing demands
more advancement and reinforcement of the fundamental
cycle consisting of training, creating organizations andperforming evaluations. Training calls for more than just
improving know-how involving technologies and skills.
Management training is also necessary in order to increase
the number of people who can be project managers andleaders. Assembling a workforce of people with skills for abroad range of job categories will enable us to assemble a
powerful organization for outstanding outsourcing(subcontracting/contracted outsourcing) services. Our plans
also include creating a personnel evaluation system thatallows our people to create their own career roadmaps. We
believe this will enhance our ability to retain highly talented
people, which will further differentiate us from our competitors.

A Vision Defined by
Our Unique Strengths

We reinforce the fundamental cycle consisting of training, creatingorganizations and performing evaluations, which will further
differentiate us from our competitors.

Higher Distinctive World Holdings characteristics

A true partner
for client companies
Co-sourcing

Domain suitable for differentiation

Skills in providing solutions for management issues
Training

Provision of market analysis services and organizational units of highly trained people

Human Resources Platform

Skills +Management education =More project managers
and leaders

Create organizational units of highly trained people

Evaluations

Domain difficult fordifferentiation
Conventional outsourcing

Establish a personnel
evaluation system thatallows people to create
their own careerroadmaps

Createorganizational units
Build a highly advanced
organization
Broaden the scope ofsubcontracting andcontracted
outsourcing

Ability to meet human resources
needs with speed and mobility
Ability to recruit the necessary number of people

Lower Competitive edge

05More interaction among business segments and coverage of more market sectors
Human resources

Manufacturing field

Stronger
relationships
with clientcompanies

Become the preeminent brand

R&D

Clientcompanies

Technology
System Integration
Factory

Matching

Maintenance and Repairs
Construction
Logistics
Sales & Marketing

Seniors

New clients

Utilize manufacturing personnel in new ways

Serve the broadest possible
range of market sectors
Innovations and reforms for recruiting activities too

People looking for a second or side job

Growth in the number ofclient companies

Topic

More interaction among
business segments

In addition to these initiatives, the new “rolling” Mediumterm Management Plan 2021 again includes the theme oftaking full advantage of our business foundation thatencompasses many market segments, which is a key
strength of ours. Increasing interaction among businesssegments will allow us to cover a broad spectrum of ourclients’ needs in order to build even stronger relationships.
Lowering opportunity loss concerning recruiting people
is another benefit of more interaction. Furthermore, giving
our people jobs in many business sectors provides themwith more opportunities to grow and develop their skills.
This is how we intend to make the ability to attract people
a major element of our brand.
We also plan create ways to utilize seniors, a steadily
growing segment of Japan’s population, as well as to takeactions concerning people who are looking for a side job,which is one issue linked to the working style reforms. By
developing the new ways for utilizing personnel in the
manufacturing field, we want to serve a broader range ofbusiness categories and to create the “ways we live” foran even larger number of people.

Strengthen client relationships by covering an even broader spectrum of
their requirements and expand our operations to cover more businessdomains by utilizing manufacturing personnel in new ways.

Our Goals

Comprehensive coverage

More interaction among the businesssegments

Aim to serve a broader range of market sectors

Growth of the number ofpeople on assignments

Human Resources and Education BusinessStart of Operations at JW Solution
Establishing JW Solution creates a platform for combining the recruitment andpersonnel management expertise of World Staffing with the unique hospitality industry
training activities of JTB Communication Design, which use this company’s distinctive
hospitality system. This will create a highly effective and innovative education programfor hospitality personnel.
We started temporary staffing services for manufacturers in order to give companies
flexibility regarding fluctuations in production volume. We have subsequently used ourown perspective for the evolution and advancement of outsourcing services. With JW
Solution, we are taking another step in this process by supplying high-quality
outsourcing support that will help hotel operators grow.

In April 2019, World Staffing Co., Ltd. and JTB Communication Design, Inc. jointly
established JW Solution Co., Ltd. World Staffing is a consolidated subsidiary of World
Holdings and engaged in temporary staffing for store sales people and office workers.
JTB Communication Design is a member of the JTB Group, one of Japan’s largest
travel organizations and provides various communication services. The new company
JW Solution provides a full line of human resource services exclusively for thehospitality industry.
The demand for hotel workers is expected to continue increasing along with thenumber of foreign tourists in Japan. JW Solution’s highest priority is to conduct
training programs in order to establish a team of hospitality professionals.

06

Business Segment Overview

Human Resources and Education Business

Sales¥37,333¥2,142

YoY

million

5.0%

Segment
profit

UP

Sales

55.9%

YoY

million

1.8%

Sales

DOWN

¥20,377

YoY

millionSegment profit

0.2%

DOWN

Segment
profitTechnology Staffing

Factory Staffing

Technology Staffing

Real estate development

R&D Staffing

Sales & Marketing

R&D Staffing

Sales & Marketing

Renovation

2,183

2,142

11.3%

12.3%

37,333

9.4%

5.2%

9.4%

4.5%

22.0%

19.8%

64.1%

65.6%

27.7%

Sales composition

30.5%

36.2%

63.8%

million56.5%

UP

Segment profit
1,227

20,416

20,377

41.9%

47.0%

784

14.8%
21.3%

53.1%

-2.7%

1H FY12/2019

YoY

Detached house

43.3%

1H FY12/2018¥1,227

Sales

Factory Staffing

35,544
Sales composition

Real Estate Business

1H FY12/2018

31.6%

-1.5%

1H FY12/2019

1H FY12/2018

1H FY12/2019 Overview

1H FY12/2019

1H FY12/2018

1H FY12/2019

1H FY12/2019 Overview

A new competitive environment is emerging that is centered on innovations as well as the need for strict compliance with laws andregulations. Human resources companies as well as companies in other industries must take actions based on the establishment oflegal frameworks concerning how people are employed and do their jobs due to the enactment of concerning the work-style reforms
and revisions to the Worker Dispatching Act and Immigration Control Act. In the manufacturing sector, which is the primary market
for this business, there was a downturn in some orders because of soft demand in the semiconductor and other IT fields caused by
the overseas business climate. Despite this weakness, the Human Resources and Education Business made a big contribution to
the growth of first half consolidated sales and earnings due to benefits of the strategy of making our brand more powerful(increasing the ability to attract people) in order to differentiate us from competitors.

With the 2020 Tokyo Olympics only one year away, a variety of signs of an asset bubble are starting to appear prior to the 2020
peak of infrastructure projects, real estate investments, projects to accommodate foreign tourists and other activities. Residential
properties are the main product of this business. In the Tokyo area, prices of condominiums have been consistently high because of
the rising cost of land, labor and other items. The outlook for this market is still unclear mainly due to the declining supply of new
condominiums and the decrease in the contract rates. Although we retained a cautious stance regarding purchases and sales ofproperties, earnings were higher mainly because we increased sales activities and closed sales of some properties earlier thanplanned for strategic reasons.

Business Overview

Business Overview

A new perception of values for work

Communities where people can live with confidence at all time

With subcontracting and temporary placement capabilities, we are a one-stop provider of services extending fromupstream to downstream processes in the manufacturing sector.
Involvement with a diverse array of market sectors and products makes this business highly resilient to almost any typeof change in the economic environment and makes it possible to supply services that support manufacturing in Japan.

This business serves many types of clients’ needs by operating real estate development, detached house, renovation,
prefabricated house and many other real estate businesses.
Diversification across many geographic areas and business sectors greatly reduces the vulnerability of this business tochanges in the economic environment. With this solid foundation, we can create residences and communities where people
can live with confidence.

Group Companies

Group Companies● WORLD INTEC CO., LTD.

● WORLD CONSTRUCTION CO., LTD.

● DOT WORLD Co., Ltd.

● WORLD RESIDENTIAL Co., Ltd.

● Nichimo Real Estate Co, Ltd.

● OMACHI WORLD Co., Ltd.

● WORLD NEXT CO., LTD.

● GEOGRAPHIC INFORMATION OF KYUSHU, INC.

● WORLD STAFFING CO., LTD.

● World iCity Co., Ltd.

● HOEIKENSETSU Co., Ltd.

● PT.WORLD DEVELOPMENT INDONESIA● WORLD INTEC TAIWAN Co., LTD.

● NIKKEN TECHNO CO., LTD.

● JW Solution Co., Ltd.

● World Wisteria Homes Co., Ltd.

● MIKUNI Co., Ltd.

● COMPAX Co., Ltd.

● EngmaIntec Co., LTD.

● SAIHI INFORMATION SERVICE CO., LTD.

● WORLD MIKUNI Co., Ltd.

● M’s World Co., Ltd.

07

Information and Telecommunications Business

Sales¥6,999YoY

million

3.8%

UP

Segment
profit

¥48

Sales
6,741

OthersYoY

million

33.4%

Sales

DOWN

¥2,117

YoY

millionSegment profit

26.4%

UP

¥196

Sales

million¥(130) million YoY

Segment profit
196

73

6,999

Segment
profit2,117

Sales composition

10.5%

1,673

Sales composition

3.1%

48

(130)
1H FY12/2018

1H FY12/2019

1H FY12/2018

1H FY12/2019

1H FY12/2018

1H FY12/2019 Overview

1H FY12/2019

1H FY12/2018

1H FY12/2019

1H FY12/2019 Overview

In this business, the priority is implementing a regional strategy in order to benefit as one of the surviving companies as a major shift
takes place in Japan’s mobile phone sales market. There are now 43 directly operated stores backed by an organization that has
undergone numerous reforms, an employee training program to give people extensive knowledge and customer service skills, andvarious forms of support for stores. The corporate solutions business, which we plan to continue to expand, established a call center
to sell new products and took other actions to establish a more powerful sales framework in the second half of fiscal 2019.

Farm Co., Ltd. and its affiliate operate agricultural parks. There were big increases in the number of visitors because of measures toattract more people at Blumen Hugel, Shiga Agriculture Farm, which recently added Alps Gym, one of the largest athletic facilities inwestern Japan, and Comorebi Ibaraido Forest in Ibaraki prefecture, which includes a Sylvanian Park. The revitalization of all parks is
progressing and their profitability is improving.

Business Overview

Business Overview

Creating new types of value involving communications

To create new “ways we live”

The operation of mobile phone stores is the primary activity in this business. Other activities include solutions for corporateclients and a telemarketing business.
All of our mobile stores closely reflect the characteristics of their respective locations. Our corporate solutions businessand telemarketing business focus mostly on assisting with cost-cutting at small- and medium-size companies.

Companies in this business have taken on challenges by operating businesses that seek to use activities outside the corebusinesses for creating new “ways we live.” For example, Farm Co., Ltd. operates nine agricultural parks in Japan with atheme of harmony among nature, man and society. Advan Co., Ltd. operates PC and online schools, produces websites
and creates a variety of designs.

Group Companies● e-support, Inc.

Group Companies● Network Solution Co., Ltd.

● Best IT Business Co., Ltd.

● Advan Co., Ltd.

08

● Farm Co., Ltd.

● Crowdeight Co., Ltd.

Topics

Other
Businesses

A new phase of the evolution of
the agricultural park business

Farm Co., Ltd., which operates agricultural parks, became a member of the World Holdings Group in February 2017. We
added this business sector to the Group with the goal of helping to increase the vitality of communities and regions. Since
then, Farm has revitalized these parks by deepening their ties with the regions they serve, created many jobs and made its
parks places where residents of nearby communities can gather and interact. Farm has nine agricultural parks in many areasof Japan that have aggregate annual attendance of about one million.

Improving the somewhat unsightly and aging facilities of agricultural parks was the first step for
revitalizing Farm’s operations. Cleaning and other care of park facilities had not been performed
properly. Some items were left unrepaired. As a result, the revitalization activities started withattention to one of the most fundamental components of parks—the appearance and condition offacilities.
Enabling visitors to enjoy their time at agricultural parks is critical to the success of these parks.
This is why Farm encouraged thorough improvements by managers and other personnel of parks. As
the motivation of these people increased, the parks began to benefit from many innovative ideas.
Farm has been making investments in new businesses beginning with the July 2018 opening of theTokyo area’s first Sylvanian Family theme park, which is located at Comorebi Ibaraido Forest.
Sylvanian Park is operated jointly with EPOCH CO., LTD. The park has attracted large numbers of
Sylvanian Family fans as well as other visitors as a place where two and even three generations offamilies can spend time together.
In March 2019, an Alps Gym with 72 climbing attractions was opened at Blumen Hugel, Shiga
Agriculture Park. Alps Gym is an athletic facility operated at about 40 locations in more than 20
countries. The gym at the Shiga Agriculture Park is the second one in Japan and the first in westernJapan. Alps Gym quickly became very popular at the Shiga Agriculture Park among people of all ages.
We plan to use these successful measures at more agricultural parks as well as to add more
facilities and features that match the regional characteristics of each park. We are also strengthening
activities for launching new businesses, such as external sales of processed food products.

Parks produce
and sell their own
sausages, dairy
products, beer
and other foodproducts.

The Growth of Park Attendance
Comorebi Ibaraido Forest

Blumen Hugel(People)140,000+62.4%

120,000+34.8%

100,000
80,00060,00040,00020,0000

April–June 2018 April-June 2019

April–June 2018 April-June 2019

Innovative additions to parks, such as Sylvanian Park at Comorebi Ibaraido Forest
and Alps Gym at Blumen Hugel, Shiga Agriculture Park, have attracted a growing
number of visitors. In the second quarter of fiscal 2019, the number of visitors wasmuch higher than in the same period of 2018.
Direct management
Designated management

Yodel Woods,

Blumen Hugel,
Shiga Agriculture Park

Kamisaki Farmland Village Park
Direct management

German Forest Kronenberg,
Okayama Agriculture Park
Designated management

Agriculture and Livestock
Information andResearch Center,

Designated management

Fureai Animal Park,
Chiba Zoological Park

Kitakyushu City

Designated management

Hibikinada Green Park,
Alps Gym
The first gym in Japan to have this German-made 17-metertall climbing wall

Hikibinada for Green© EPOCH

Sylvanian Park
Everyone can fully enjoy the world of the Sylvanian Family

Direct management

09

Direct management

Comorebi
Ibaraido Forest
Direct management

Harvest Hill,

Tirolean Forest,

Sakai Green Museum

Shinshu Shiojiri Agriculture Park

Corporate Data/Stock Information

Corporate Data
Name:

World Holdings Co., Ltd.

Established:

February 12, 1993

Share capital:¥785 million

Number of authorized shares: 54,000,000
Number of shareholders: 2,798

Treasuryshares0.71%

19,319 (consolidated)Fukuoka Head Office:
6F Fukuoka Asahi Building, 2-1-1 Hakata Ekimae, Hakata-ku,
Fukuoka-shi, Fukuoka Prefecture 812-0011 Japan
Phone: +81-92-474-0555 Fax: +81-92-474-0777

Address:

Foreign entities, etc.
14.85%

Kitakyushu Head Office:2F, 11-2 Otemachi, Kokurakita-ku, Kitakyushu-shi, Fukuoka
Prefecture 803-0814 Japan
Phone: +81-93-581-0540 Fax: +81-93-581-0542

Otherentities
34.33%

Individuals/
others
27.16%

Shareholder
Composition

Financial
instruments firms
1.67%

Financial
institutions
21.28%

Businesses:

Toru Iwasaki, Executive Director
Yuji Takai, Executive Director
Shinji Honda, Executive Director
Shigeru Nakano, Executive Director
Yoshihiko Mimasu, Executive Director
Toshihiko Kanno, Executive Director
Syuzou Ito, Executive Director
Akira Soejima, Executive Director

IIDA Research Institute, Limited

5,800,000

34.45%

Eikichi Iida

2,061,500

12.24%

Japan Trustee Services Bank, Ltd. (Trust Account)

1,685,400

10.01%BNP PARIBAS SECURITIES SERVICES LUXENBOURG/JASDEC/FIM/LUXEMBOURG FUNDS/UCITS ASSETS
Standing Proxy: The Hongkong and Shanghai Banking
Corporation Limited, Tokyo Branch

750,000

4.45%

The Kitakyushu Bank, Ltd.
Standing proxy: The Master Trust Bank of Japan, Ltd.

709,200

4.21%

Nanko Abe

500,000

2.97%

THE NISHI-NIPPON CITY BANK, LTD.

300,000

1.78%

The Master Trust Bank of Japan, Ltd. (Trust Account)

245,100

1.45%

MUFG Bank, Ltd.

180,000

1.06%

JPMorgan Chase Bank 385151
Standing proxy: Mizuho Bank, Ltd., Settlement Sales
Department

147,2140.87%

Dividends
The basic policy for profit distributions is to distribute profits in a manner that reflects results of operations
while retaining sufficient earnings for future business operations and for making business operations
stronger. For dividends, the goal is to increase the dividend consistently while using a consolidated payout
ratio of 30% as the guideline.

Dividend per share (Yen)

Executives:
Eikichi Iida, Chairman and President

Number of Shareholding
shares held
ratio

Shareholders* Shareholding ratio is calculated after deducting treasury shares (121,000 shares).

Tokyo Head Office:
4F NBF COMODIO Shiodome, 2-14-1 Higashi-Shinbashi, Minatoku, Tokyo 105-0021 Japan
Phone: +81-3-3433-6005 Fax: +81-3-3433-6003
Businesses related to the entire group including formulation ofmanagement policies for the holding company and the groupcompanies and management of the group’s business operations(Human Resources and Education Business, Real EstateBusiness, Information and Telecommunications Business)(As of June 30, 2019)

Major Shareholders

Number of shares outstanding: 16,957,600

Representative: Eikichi Iida, Chairman and President
Number of
employees:

Stock Information(As of June 30, 2019)

Koichi Hashida, Executive Director(Outside Independent)

82.7

83.0

75.3

Shingo Igarashi, Executive Director(Outside Independent)

65.5

Hideki Yamazaki, Executive Director(Outside)

45.7

Kazuyuki Yamamura, Audit andSupervisory Board Member (Full-time)

23.7

Mitsuo Koga, Audit and Supervisory
Board Member (Outside)
Tetsuo Kato, Audit and Supervisory
Board Member (Outside)

4.5

4.5

FY12/2010

FY12/2011

10

8.5

10.0

FY12/2012

FY12/2013

FY12/2014

FY12/2015

FY12/2016

FY12/2017

FY12/2018

FY12/2019(forecast)Memorandum for Shareholders
Business year:

The IR Information section of the World Holdings website has messages
from senior executives, information about the New Medium-termManagement Plan 2021, an IR library, financial data and recent news.

January 1 to December 31

Annual General MeetingMarchof Shareholders:Shareholder registry
and special accountadministrator:

The World Holdings Website

Mitsubishi UFJ Trust and Banking Corporation

Front page of the website

IR Information

https://en.world-hd.co.jp/

https://en.world-hd.co.jp/ir/

Securities Agency Division, Mitsubishi UFJ Trust andBanking Corporation 1-1 Nikko-cho, Fuchu-shi, Tokyo, Japan
Address:

Public announcements:

Contact: 0120-232-711 (toll- free in Japan)
Mailing address: Securities Agency Division, Mitsubishi UFJ
Trust and Banking Corporation, PO Box
29, New Tokyo Post Office, 137-8081
Notices will be posted in electronic format on our internet
web page (https://world-hd.co.jp/). However, notices will be
published in the Nihon Keizai Shimbun when an electronic
notification is not possible for unavoidable reasons.

Fukuoka Head Office:Kitakyushu Head Office:Tokyo Head Office:

6F Fukuoka Asahi Building, 2-1-1 Hakata Ekimae, Hakata-ku,
Fukuoka-shi, Fukuoka Prefecture 812-0011 Japan
Phone: +81-92-474-0555 Fax: +81-92-474-0777

2F, 11-2 Otemachi, Kokurakita-ku, Kitakyushu-shi,
Fukuoka Prefecture 803-0814 Japan
Phone: +81-93-581-0540 Fax: +81-93-581-0542

4F NBF COMODIO Shiodome, 2-14-1 Higashi-Shinbashi,
Minato-ku, Tokyo 105-0021 Japan
Phone: +81-3-3433-6005 Fax: +81-3-3433-6003