Consolidated Financial Results for the Second Quarter of 2019
(Six Months Ended June 30, 2019)[Japanese GAAP]
August 5, 2019

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange, First Section
2429
URL: http://www.world-hd.co.jp
Eikichi Iida, Chairman and President
Shigeru Nakano, Executive Director, Head of Corporate Planning Division
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
August 9, 2019
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Yes (for institutional investors and analysts)
Holding of quarterly financial results meeting:Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Six Months of 2019 (January 1 to June 30, 2019)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%

Six months ended Jun. 30, 201966,827Six months ended Jun. 30, 2018
64,379Note: Comprehensive income (millions of yen)

Million yen%

Million yen

3.8
2,529
26.2
13.2
2,005
(32.8)
Six months ended Jun. 30, 2019:
Six months ended Jun. 30, 2018:

Net income per share
Six months ended Jun. 30, 2019
Six months ended Jun. 30, 2018

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

%

2,529
26.4
1,685
2,001 (32.2)
1,079
1,724 (up 52.3%)
1,132 (down 49.3%)%

56.2(47.6)

Diluted net income per share

Yen

Yen

100.10
64.15

99.00
63.08

(2) Consolidated financial position
Total assets

Net assets

Million yen

Net assets per share

Equity ratio

Million yen

As of Jun. 30, 201982,076
22,644As of Dec. 31, 2018
79,964
22,347
Reference: Shareholders’ equity (millions of yen)
As of Jun. 30, 2019: 21,310

%

Yen

26.0
1,265.70
26.3
1,249.02
As of Dec. 31, 2018: 21,028

2. Dividends
1Q-endDividends per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

2018
0.00
2019
0.00
2019 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

-

83.00

83.00

-

65.50

65.50

3. Consolidated Forecast for 2019 (January 1 to December 31, 2019)
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

Full year
155,4528.8
6,049 (17.9)
5,910(19.7)
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

3,672(21.0)

218.11

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly
Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated
Financial Statements” on page 12 for further information.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Jun. 30, 2019:

16,957,600 shares

As of Dec. 31, 2018:

16,956,600 shares

As of Dec. 31, 2018:

120,929 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2019:

121,000 shares

3) Average number of shares during the period
Six months ended Jun. 30, 2019:16,836,147 shares

Six months ended Jun. 30, 2018:16,820,496 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 Monday, August 19, 2019.
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 2019

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

4(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

5

2. Quarterly Consolidated Financial Statements and Notes

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income

8

Quarterly Consolidated Statement of Income
For the Six-month Period

8

Quarterly Consolidated Statement of Comprehensive Income
For the Six-month Period9(3) Quarterly Consolidated Statement of Cash Flows

10(4) Notes to Quarterly Consolidated Financial Statements

12

Going Concern Assumption

12

Significant Changes in Shareholders’ Equity

12

Changes in Significant Subsidiaries during the Period

12Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

12

Additional Information

12

Segment Information

13

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of 2019, the worsening overseas economic climate caused by U.S.-China trade friction, slowing
economic growth in China and other events continued to exert downward pressure on the Japanese economy,
mainly in the manufacturing sector. In addition, Japan’s labor market remained tight. The rising cost of laborcaused by the chronic labor shortage as well as other factors are having a negative effect on business sentiment.
Overall, the economic outlook is still uncertain.
First half sales and earnings were higher than one year earlier even as investments for future growth continued.
Results of operations were in line with the 2019 business plan that reflects the current operating environment.
In the Human Resources and Education Business, a new competitive environment is emerging that is centered on
innovations as well as the need for strict compliance with laws and regulations. In Japan, there are numerous newlaws and amendments to existing laws concerning working style reforms, the temporary staffing business andforeign workers. Human resource companies as well as companies in other industries must take actions based on
the establishment of legal frameworks concerning how people are employed and do their jobs. In the
manufacturing sector, which is the primary source of demand for the services of this business, there was a
downturn in some orders due to soft demand in the semiconductor and other IT categories 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 brandmore powerful (increasing the ability to attract people and clients) in order to differentiate us from competitors.
In the Real Estate Business, 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, pro jects toaccommodate 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 andother items. The outlook for this market is still unclear mainly due to the declining supply of new condominiums
and the decrease in the first-month contract rate. Although we retained a cautious stance regarding purchases andsales of properties, earnings were higher mainly because we increased sales activities and completed the closingof sales of some properties earlier than planned for strategic reasons.
In the Information and Telecommunications Business, the priority is implementing a regional strategy in order tobenefit as one of the surviving companies as a major shift takes place in Japan’s mobile phone sales market.
During the first half, this business made changes to its organizational structure , developed store network,
strengthened employee training activities, and took other actions.
Net sales increased 3.8% year on year to 66,827 million yen. Operating profit increased 26.2% to 2,529 million
yen, ordinary profit increased 26.4% to 2,529 million yen, and profit attributable to owners of parent increased
56.2% to 1,685 million yen.
Results by business segment are described below.
Factory Staffing Business
Consistent growth in the core logistics category offset a decline in production at some client companies in thesmartphone and semiconductor industries. The performance of this business also benefited from an increase in thenumber of subcontracting locations and progress with the training and placement of people for jobs requiring ahigh level of skills. We have been working on the establishment of a package of solutions for compliance with thesame-work, same-pay requirement that will start in Japan in April 2020. These solutions are attracting an
increasing number of inquiries from clients and, by enabling us to target latent demand, have led to the receipt ofcontracts for services in 2020 and afterward.
Training programs and a sound organization are the primary strengths that give this business a competitive edge.
During the first half, there were training programs for highly skilled people for maintenance ser vices and otherjobs. We also performed training for people who can serve as leaders in order to broaden services provided toclients. We continued to increase the pool of prospective employees for assignments as the number of people

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

registered on our Job Paper website surpassed 68,000. In another move to maintain a sound infrastructure forrecruiting people, we have a program for hiring the employees of our client companies.
As a result, sales were 23,913 million yen, up 2.5% year on year and segment profit decreased 18.3% to 1,137
million yen.
Technology Staffing Business
Sales and earnings in this business continued to increase. One reason is the success of the Creating the Ways We
Live Academy, a training and skill development scheme that has been a key component of this business for sometime. Quickly placing new college graduates in assignments and an increase in the number of large clients due toheightened sales activities also contributed to the first half performance of this business.
We upgraded manufacturing technology training and 3D-CAD training as part of our up-front investments for the
expansion of training programs in this business. This training resulted in an increase in contracts in theautomobile industry. In addition, programming training and infrastructure training contributed to an increase incontracts involving information and telecommunication services. The number of people recruited for this business
continued to climb as the ability to provide education and training makes it possi ble to hire people with a broader
range of skills, backgrounds and other characteristics.
Sales were 8,220 million yen, up 16.9% year on year and segment profit increased 28.1% to 774 million yen.
R&D Staffing Business
The research personnel sector performed well due to the increasing volume of business with current clients in thematerials category and the biotechnology category, including synthetic chemicals, analysis and other activities.
While implementing structural reforms, the clinical research outs ourcing sector continued to capture orders forclinical trials for client companies.
Training programs in the research personnel sector included the use of joint research laboratories with partner
universities in order to give people knowledge to fill positions requiring advanced skills. We also upgraded
activities using external training programs, chiefly in order to give people a stronger commitment to hospitality.
This business is hiring carefully chosen research personnel with outstanding skills in order to reinforce the World
Holdings Group’s ability to provide technical support to client companies.
Sales were 3,504 million yen, up 5.0% year on year, and segment profit increased 6.7% to 263 million yen.
Sales & Marketing Staffing Business
The volume of business increased in current business domains, such as high-volume sales, retail and call centers,
and there were measures to enter other market sectors where the business can add significant value .
In April 2019, World Holdings and JTB Communication Design, Inc. established JW Solution Co., Ltd. The newcompany is now making preparations to start providing comprehensive human resource services to the hotelindustry starting in the second half of 2019.
Sales were 1,695 million yen, down 8.2% year on year, and segment loss was 33 million yen, compared with asegment loss of 60 million yen one year earlier.
Real Estate Business
The real estate development business retained a cautions stance regarding property purchases and sales. Earnings
were higher because this business increased sales activities and completed the closing of sales of some properties
earlier than planned. In addition, there was an increase in earnings in the renovation business as measures aimed
at the growth of this business continue.
The performance of each category of this segment was as follows.
The real estate development business sold 37 condominium units and five sites for business use, resulting inproperty sales of 6,441 million yen. Sales from real estate brokerage and other activities totaled 1,388 million
yen.
3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

In the renovation business, 365 residences were sold and sales were 7,369 million yen.
The detached house business completed the sale of 145 custom-build and other houses and recorded sales of
4,366 million yen.
In the prefabricated house business, sales from rentals, sales and other activities totaled 813 million yen.
Sales were 20,377 million yen, down 0.2% year on year and segment profit was 1,227 million yen, up 56.5%.
Information and Telecommunications Business
The mobile phone shop business has been closing and consolidating stores in order to establish a network ofcompetitive and successful stores. 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, and various forms of support for stores. The corporate solutions business, which we plan tocontinue to expand, established a call center to sell new products and took other acti ons to establish a more
powerful sales framework in the second half of 2019.
Sales were 6,999 million yen, up 3.8% year on year, and segment profit was 48 million yen, down 33.4%.
OthersFarm Co., Ltd. and its affiliate operate agricultural parks. There were big increases in the number of visitors
because of measures to attract more people at Blumen Hugei Farm in Shiga prefecture, which recently added anenormous athletic facility called Alps Gym, and Comorebi Ibaraido Forest in Ibaraki prefecture, which includes a
Sylvanian Park. The revitalization of all parks is progressing and their profitability is improving. At Advan Inc.,
which mainly operates PC schools, the website production and other activities are performing well and there are
activities to increase synergies with the Human Resources and Education Business. Advan is also playing asignificant role in the training of engineers in the Technology Staffing Business.
Sales were 2,117 million yen, up 26.4% year on year, and there was a segment profit of 196 million yen,
compared with a segment loss of 130 million yen one year earlier.
(2) Explanation of Financial Position
AssetsTotal assets increased 2,112 million yen from the end of 2018 to 82,076 million yen at the end of the second
quarter of 2019. This was mainly due to decreases of 3,299 million yen in cash and deposits, 760 million yen innotes and accounts receivable-trade and 306 million yen in goodwill, and increases of 4,509 million yen in realestate for sale and 2,319 million yen in real estate for sale in process.
Liabilities
Total liabilities increased 1,815 million yen from the end of 2018 to 59,432 million yen. This was mainly due todecreases of 568 million yen in accounts payable-real estate, 834 million yen in income taxes payable, 1,131
million yen in long-term loans payable and 497 million yen in provision for directors’ retirement benefits, and anincrease of 5,328 million yen in short-term loans payable.
Net assets
Net assets increased 296 million yen from the end of 2018 to 22,644 million yen mainly due to a 305 million yen
increase in retained earnings.
Cash Flows
Cash and cash equivalents at the end of the first half of 2019 decreased 3,299 million yen from the end of 2018 to
15,525 million yen.

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

Cash flows from operating activities
Net cash used in operating activities was 5,129 million yen. Main positive factors include profit before income
taxes of 2,596 million yen and income taxes refund of 847 million yen. Major negative factors include a 6,828
million yen increase in real estate for sale and income taxes paid of 1,701 million yen.
Cash flows from investing activities
Net cash used in investing activities was 980 million yen. Main negative factors include payments of 174 million
yen for purchase of investments in non-consolidated subsidiary, 592 million yen for purchase of property, plantand equipment, and 118 million yen for purchase of intangible assets.
Cash flows from financing activities
Net cash provided by financing activities was 2,745 million yen. Main positive factors include a net increase of
3,551 million yen in short-term loans payable and proceeds of 2,535 million yen from long-term loans payable.
Main negative factors include repayments of long-term loans payable of 1,887 million yen and cash dividends
paid of 1,397 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The Company maintains its full-year consolidated forecasts that were announced in the “Consolidated Financial
Results for 2018” on February 12, 2019.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of 2019
(As of Jun. 30, 2019)2018(As of Dec. 31, 2018)
AssetsCurrent assets
Cash and deposits

18,825

15,525

Notes and accounts receivable-trade

11,252

10,491

Merchandise and finished goods

1,032

1,211

Real estate for sale

13,193

17,702Work in process

129

63

Real estate for sale in process

21,12423,444

Other

4,270

3,528

(5)

(8)

69,823

71,958

5,439

5,686

1,046

739

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

312

300

1,359

1,039

Investment securities

442

540

Deferred tax assets

Total intangible assets
Investments and other assets

1,178

1,181

Lease and guarantee deposits

917

955

Other

878

788

Allowance for doubtful accounts

(74)

(74)

Total investments and other assets

3,342

3,391

10,140

10,117

79,964

82,076

1,531

1,520

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

1,818

1,249

Short-term loans payable

28,321

33,650Accrued expenses

5,963

6,374

Income taxes payable

1,877

1,043

Accrued consumption taxes

1,217

856

111

170

-

0

Provision for bonuses
Provision for directors’ bonuses
Other

5,290

4,642

Total current liabilities

46,13049,508

9,112

7,981

667

169

1,411

1,504

293

268

Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

6

11,485

9,923

57,61659,432

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

(Millions of yen)
Second quarter of 2019
(As of Jun. 30, 2019)2018(As of Dec. 31, 2018)
Net assets
Shareholders’ equity
Capital stock

784

785

Capital surplus

965

951

Retained earnings

19,412

19,718Treasury shares

(126)

(127)

Total shareholders’ equity

21,036

21,327

Valuation difference on available-for-sale securities

12

(2)

Foreign currency translation adjustment

1(2)

Remeasurements of defined benefit plans

(21)

(12)

Accumulated other comprehensive income

(8)

(17)

Share acquisition rights

Total accumulated other comprehensive income

124

124

Non-controlling interests

1,195

1,209

Total net assets

22,34722,644

79,964

82,076

Total liabilities and net assets

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019(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 2019
(Jan. 1 – Jun. 30, 2019)

First six months of 2018
(Jan. 1 – Jun. 30, 2018)
Net sales

64,37966,827

Cost of sales

52,62953,638Gross profit

11,75013,189Selling, general and administrative expenses

9,744

10,659Operating profit

2,005

2,529

19

13

Non-operating income
Subsidy income
Income of support to investment in property andequipment
Other

0

24

101

102

Total non-operating income

121

140

Interest expenses

99

92

Loss on retirement of non-current assets

9

39

Other

17

7

Non-operating expenses

Total non-operating expenses

125

140

2,001

2,529

Casualty insurance income-

22

Consumption taxes differential

-

60

Other

-

0

Total extraordinary income-

83

Impairment loss

11

3

Loss on disaster

14

13

Ordinary profit
Extraordinary income

Extraordinary losses

Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8

25

17

1,975

2,596

832

861

1,143

1,734

64

49

1,079

1,685

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Millions of yen)First six months of 2019
(Jan. 1 – Jun. 30, 2019)

First six months of 2018
(Jan. 1 – Jun. 30, 2018)
Profit

1,143

1,734

Valuation difference on available-for-sale securities

(6)

(14)

Foreign currency translation adjustment

(8)

(4)

4

8

(11)

(10)

1,132

1,724

1,069

1,675

62

48

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019(3) Quarterly Consolidated Statement of Cash Flows(Millions of yen)First six months of 2019
(Jan. 1 – Jun. 30, 2019)

First six months of 2018
(Jan. 1 – Jun. 30, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for directors’ retirement
benefits
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Loss on retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in real estate for sale
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in deposits received
Increase (decrease) in accrued expenses
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Proceeds from purchase of shares of subsidiaries resulting
in change in scope of consolidation
Purchase of investments in non-consolidated subsidiary
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of loans receivableCollection of loans receivable
Net decrease (increase) in lease and guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Redemption of bonds
Proceeds from issuance of common shares
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash provided by (used in) financing activities

10

1,975
329
11
348
0

2,596
396
3
306
2

35

(497)

76
(6)
99
9
(27)
(403)
(62)
(156)
81
488
(335)
(1,223)

106
(8)
92
39
758
(185)
(6,828)(581)
410(1,084)271

1,239(4,201)4(97)(1,318)
1,301

17
(91)
(1,701)847

1,129(5,129)

0

0

39

-

(70)
(504)
(63)
(0)
1
(17)
(49)

(174)
(592)
(118)
(30)
0
(39)
(27)

(664)

(980)

(706)
2,139
(1,340)
(10)
(262)
14
(0)
(1,390)
-

3,551
2,535
(1,887)(8)
0(0)(1,397)
(48)

(18)

-

(1,575)2,745

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

First six months of 2018
(Jan. 1 – Jun. 30, 2018)
Effect of exchange rate change on cash and cash equivalents(Millions of yen)First six months of 2019
(Jan. 1 – Jun. 30, 2019)

(6)

(3)

Net increase (decrease) in cash and cash equivalents(1,116)(3,368)Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary

18,227

18,824276

69

Cash and cash equivalents at end of period

17,387

15,525

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity

Not applicable.
Changes in Significant Subsidiaries during the Period
Not applicable.
The following information is provided even though these two actions were not a change in a significant
subsidiary.
HOEI HOME CO., LTD., which was a non-consolidated subsidiary in 2018, is included in the consolidated
financial statements starting in the first quarter of 2019 because of the increasing significance of this company.
KITAYAMA REBEN CO., LTD., which was a non-consolidated subsidiary in 2018, is included in the
consolidated financial statements starting in the first quarter of 2019 because of the increasing significance of thiscompany.
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, theCompany uses legally stipulated effective tax rates to calculate tax expenses for cases in which using estimatedtax rates gives a noticeably irrational result.
Additional Information
Application of the “Partial Amendments to Accounting Standard for Tax Effect Accounting,” etc.
Effective from the first quarter of 2019, the Company has adopted the “Partial Amendments to AccountingStandard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28, February
16, 2018) and other related pronouncements. Accordingly, deferred tax assets and deferred tax liabilities havebeen presented in the investments and other assets section and the non -current liabilities section of the balance
sheet, respectively.

12

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

Segment Information
I. First six months of 2018 (Jan. 1 – Jun. 30, 2018)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni- Subtotal
Staffing
Business Business BusinessBusinesscations
Business
Business

Others(Note 1)

Total

Amounts
shown onAdjust- quarterly
ments consolidated(Note 2) statement ofincome(Note 3)

Net sales
Sales toexternal
23,332
7,029 3,336
1,847 20,416
6,741
62,704
1,675 64,379
64,379customers
Inter-segment
sales and
233
46
7
9
296
43
340
(340)
transfers
Total
23,332
7,262 3,336
1,893 20,424
6,751
63,001
1,719 64,720(340)
64,379Segment
1,392
604
247
(60)
784
73
3,041
(130)
2,910
(905)
2,005
profit (loss)
Notes: 1. “Others” represent businesses not included in reportable segments and include the operation and management ofagricultural parks, the operation of personal computer schools, the production of websites and other services.
2. The -905 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 25
million yen, and -931 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.
3. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
There is no significant change.
Significant gain on bargain purchaseNot applicable.

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WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2019

II. First six months of 2019 (Jan. 1 – Jun. 30, 2019)
1. Information related to net sales and profit or loss for each reportable seg ment
(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni Subtotal
Staffing
Business Business BusinessBusiness-cations
Business
Business

Others(Note 1)

Total

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

Net sales
Sales toexternal
23,9138,220 3,504
1,695 20,377
6,999 64,709
2,117 66,826
0
66,827
customers
Inter-segment
sales and
226
49
8
6
291
64
355 (355)
transfers
Total
23,9138,446 3,504
1,745 20,385
7,005 65,001
2,181 67,182 (354)66,827
Segment
1,137
774
263
(33)
1,227
48
3,419
196
3,615 (1,086)
2,529
profit (loss)
Notes: 1. “Others” represent businesses not included in reportable segments and include the operation and management ofagricultural parks, the operation of personal computer schools, the production of websites and other services.
2. The -1,086 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 15
million yen, and -1,101 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrat ive expenses that are not attributable to anyof the reportable segments.
3. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
There is no significant change.
Significant gain on bargain purchaseNot applicable.
This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

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