FY2013 First Quarter Supplementary Information

May 7, 2013
World Intec Co., Ltd
JASDAQ (2429)

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

CONTENTS

I. Summary of FY2013 First Quarter Financial Results
II. Segment Highlights
III. FY2013 Business Forecasts

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved2Management Style and Group Philosophy
Conservative and steady management: Strong financial base (debt-free management
until the launch of Real estate business)

To be a group that will never collapse
Building of a group to stand any changes in external environment
Connect people with work

New work style
Bring people together through IT

New style of communication
Connect people with housing
New style of urban development

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved3World Intec Group: Three Core Businesses

World Intec Co., LtdGroup
R&D ・・・・・・
Technology ・・・・・・・
Factory ・・・・・・

e-support, inc.
・Call center business

World Online Co., Ltd.
・Corporate business・OA equipment sales

Network Solution Co., Ltd.
・Softbank shop business・WILLCOM shop business

Mobile Service Co., Ltd.
・au shop businessBest IT Business Co., Ltd.

CB ・・・・・・・・
Construction ・・・

World Residential Co., Ltd.
・Condominium business・Condominium management business・Contract selling business

Nichimo Real Estate Co, Ltd.
・Contract selling business・Selling agency
・Real estate consulting business

World Resiselling Co., Ltd.
・Selling agency
・Contract selling business

World iCity Co., Ltd.
・Condominium business・Selling agency
・Contract selling business

Administrative ・・・・・
Overseas ・・・・・・・・・
Repair ・・・・・・・・ ・・・

Dispatch of researchers
Dispatch of engineers
Dispatch of manufacturers,
Contract work
Dispatch of sales personnel
Dispatch of construction
managing engineers
Personnel training contract
Parts procurement
Repair service

WORLD INTEC FUKUSHIMA CO., LTD
Administrative contract business

DOT International Co., Ltd.
CRO (Clinical Research Outsourcing) business

Advan Co., Ltd.
Education business・PC school operations, educational materials,
software sales

GEOGRAPHIC INFORMATIONOF KYUSHU, INC.
・Map information sales ・Entrusted system development
・Disabled persons’ employment support, education

WORLD INTEC TAIWAN CO., LTD.

・Corporate business

Overseas business・・・・・Dispatch of manufacturers

WORLD INTEC SHANGHAI CO., LTD.

(non-consolidated)

・Comprehensive human resources service
・Education consulting
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

I. Summary of FY2013 First Quarter Financial Results

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

5

FY2013 First Quarter SummaryFirst quarter performance was as expected. We promoted up-front investment aimed at
the second quarter onwards.
Million yen, %FY12/1Q actual
Net sales
Operating income

Ordinary income
Net income/loss

11,957118
103
64

FY13/1Q actual

11,731
93
104
6

YoY
ChangePct. change

226
24
0
70

1.9
21.1
0.6
-

FY13 1Q-2Q
forecast*

26,824608
580
178

Progress rate
vs. 2Q forecast

43.7
15.3
17.9
3.4

*Announced on February 12, 2013

■ Net sales decreased 1.9% in the real estate business as no new properties werecompleted and handed over
■ Operating income decreased 21.1% due to advanced payments for sales promotion
expenses for the real estate business■ Although ordinary income increased, a net loss was posted due to increases in income
taxes and minority interests

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

6

Business Summary by Segment
Million yen, %Unit: million yen, %Factorybusiness

Technology
business

R&D businessInform ation
technology &telecom m unications business

Real estatebusiness

Others

FY13/1Q actual

FY13 1Q-2Q
forecast

Progress rate
vs. FY13 1Q2Q forecast

ChangePct. change

192

4.8

9,241

45.6%

67

226.8

283

34.3%

Segment income

29

4,216
97

Profit margin

0.7%

2.3%

－

－

3.1%

Net sales

1,528

6

0.4

3,219

47.7%

1

2.2

200

38.5%

Net sales

4,023

Segment income

76

1,534
77

Profit margin

5.0%

5.0%

－

－

6.2%

Net sales

694

185

26.8

1,884

46.7%

Segment income

62

880
58

52.7%

8.9%

6.6%

－

Net sales

2,926

Segment income

109

3,332
82

△ 5.4

110

Profit margin△3

Profit margin

3.8%

2.5%

Net sales

1,232

△27

Segment income

42

Profit margin

3.4%

Net sales

1,553

406
－

186 △1,045
△170
△128
－
27
1,581
16
109

－

5.8%

13.9

5,706

58.4%

△ 25.3

183

44.8%

－

3.2%

△ 84.9

4,474

4.2%

－

288

-

－

6.4%

1.8

2,297

68.8%

17.8

83

131.3%

Segment income

93

Profit margin

6.0%

6.9%

－

－

3.6%

11,957

11,731
△204
93

△226

△ 1.9

26,824

43.7%

△540
608

15.3%

Net sales
Total

FY12/1Q actual

YoY

Elimination or corporate

Operating income
Operating margin

△295
118
1.0%

0.8%

－
24
△
－

△ 21.1

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2.3%

-

7

Changes in Net Sales by Segment(Million yen)
13,00012,500Information technology& telecommunications
406

R&D
185

Factory
192

Technology
6

Real estate△1,045

DOT's contribution(130)

12,000

Increase due to the startof a large-scale project in
the prior period

11,50011,000

Others27

No new properties
were completed andhanded over

2012/1Q
11,957

Strong sales ofsmartphones and tablets

Real estate
11,7282013/ 1Q
11,731

Real estate

2013/ 1Q

10,500

Down ¥226 million
10,000Information
2012/1Qtechnology & telecommunications
Factory

R&D

OthersTechnology

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved8Changes in Operating Income by Segment(Million yen)
300

Goodwill amortization
associated with making
DOT a subsidiary

Profitability and improvementof cost of businesses inwhich upfront investments
were madePromotion of store
scrap and build

250
Others16

200

Technology
1

R&D
△3
Information technology& telecommunications△27

Due to no property
handovers until 2Q

Factory
67

150

100

50

Real estate△170
Eliminations
or
corporate
91

2012/1Q
118

2013/1Q
93

0

Down ¥24 million

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

9Financial Condition B/S(Million yen)

Total assets

27,00026,48923,805Current assets•

18,000Real estate for sale in process

Acquisition of land for new PJ
and increase in construction inprocess

24,01021,279

9,000

2,525

2,478

End of FY2012

End of FY2013/1Q

Fixed assets

Current assets

0(Million yen)

Total liabilities/net assets

27,000Current liabilities

26,48923,805•18,00013,215 (+3,161)

Short-term debt

9,916 (+529)

Funds for purchase of realestate for sale

3,515 (+1,711)

Funds for purchase ofreal estate for sale

16,784
15,733Fixed liabilities
9,000
2,245

3,975

5,826

5,730

End of FY2012

End of FY2013/1Q•

Long-term debt

0
Net assets

Fixed liabilities

Current liabilities

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

10II. Segment Highlights

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11Segment Overview Summary
Sales/profits up
As for the Factory business, businesses in which up-front investments were made in the prior period
became profitable and improved cost rates. Absorbed investments for 2Q onwards.
The Technology business results were almost as planned.
In the R&D business, sales for part of a PJ for CRO contracts, which was initially to be recorded in May
sales, was brought forward to March and contributed to increased profits.

Sales up/profits down
Although sales increased, profits decreased due to up-front investments for store renovations, etc.

Sales /profits down
Concluded delivery of one property in stock that was completed in the prior period.
In 1Q no new properties were completed and handed over. Although sales and profits declined year
over year, losses were curbed due to a shift in the timing for expenditure of selling expenses
following revision of sales plans for properties to be accounted for in the next period.

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

12Changes in Percentage of Sales by Category in the Factory Business
There has been a shift from the semi-conductor field, along with advancing
development of the logistics field
2.7%
24.9%

2013/12 1Q

16.8%

11.5%

9.5%

5.4%
5.5% 4.1%

8.3%

2.6%

2012/12 1Q

28.6%

15.3%

10.9%

3.5%

6.5% 6.0% 3.9%

9.2%

38.5%

0

1E+09

6.8%

2E+09

14.1%

10.1%

13.0%

2.2%

2.4% 1.8%

2011/12 1Q

11.2%

11.5%

5.4% 6.7%

3E+09

4E+09

Semiconductors

Automobiles

Electrical & electronics

Machinery

Logistics

Precision equipment

Environment & energy

Pharmaceuticals

Chemicals

Food & consumables

IT & telecommunications services

OthersCopyright © WORLD INTEC CO.,LTD. All Rights Reserved

5E+09

13

Changes in Percentage of Sales by Category in the Technology Business
There has been an advancing shift from semi-conductor production technology todesign and development of automobiles and IT and telecommunications services
1.6%

2013/12 1Q

7.6% 4.2% 3.3% 4.3%

48.2%

16.6%

13.2%

1.1%

2012/12 1Q

59.0%

3.7% 5.0%3.0% 3.3%

11.3%

13.0%

1.1%

2011/12 1Q

67.1%

0
Semiconductors
Logistics
Chemicals

300000000

600000000

Automobiles
Precision equipment
Food & consumables

3.2% 5.7%2.8%3.1% 10.3%

900000000
Electrical & electronics
Environment & energy
IT & telecommunications services

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

5.7%

1.2E+09

1.5E+09

Machinery
Pharmaceuticals
Others14

Human Resources and Education Business(Factory/Technology/R&D Businesses)
No. of employees (persons)(Persons)(Persons)

No. of employees inTechnology business (persons)

1,600

12,000
9,376

9,382

1,352
1,200

8,000

Designdevelopment
483

800
4,000

400
Of which
Factory
4,229

5,425

2012/1Q

2013/1Q

1,268
Designdevelopment
565

Production
technology
869

Production
technology
703

2012/1Q

2013/1Q

0

0

Design development
Production technology

Factorybusiness

Profitability and improvement of cost rates for large-scale projects that were in the start-up period
at the same period of last year contributed to increased profit

Technology
business

Major customers shifted from semiconductor manufacturers’ production technology field to design
development field
Rising needs for information and telecommunications- or automobile-related engineers in thedesign development field

R&D business

Promoted mutual collaborative operations with the clinical research outsourcing specialist, DOT
International, which was made into a subsidiary in November 2012

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15

Human Resources and Education Business: Others
Net sales(Million yen)

2,500
CB andconstruction,
etc.
260

2,000

Fukushimacontracts△83

Others
△149

1,500

1,000

2013/12 1Q
1,581

2012/12 1Q
1,553
500

Up ¥28 million0
2012/12 1Q

CB andconstruction, etc.

Fukushimacontracts

Others2013/12 1Q

CB business

Steady growth in sales and profit due to selection and concentration with influential clients

Administrative
contract

Earthquake disaster rehabilitation- and reconstruction-related administrative contract
business will continue after April

Geographic
information of
KyushuSteadily received orders for maintenance and digitalization of maps from the local
government and regional companies
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

16

Information Technology & Telecommunications Business:
Total No. of Mobile Phones and Smartphones Sold
Units

Annual sales of more than
300 thousand units

Note) the above are consolidated fiscal years and are 3 months behind the calendar years.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

17Real Estate Business
Promoted community-based business marketing and purchasing in light ofbusiness profitability
Purchasing
status5 properties in the Tokyo metropolitan area: (Komazawa, Hamacho,
Mukoujima, Mitaka, Oizumigakuen)
1 property in the Sendai area (26 blocks in Asutonagamachi)

Handoverstatus1 unit of the company's own condominium (Residential Shinagawa
Nakanobu)
60 units for contract selling (15 units in the Tokyo metropolitan area, 45 units
in the Sendai area)

Progress
statusSteady progress with 91 units under contract
The progress rate for the company's own condominium properties was 65%of the current period plan, and for contract properties was 85%.

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

18III. FY2013 Business Forecasts

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

19Summary of FY2013 Business Forecasts
No changes from initial forecasts
Million yen, %FY12 actual

FY13 forecast

YoY
Change Pct. Change

Net sales
Operating income
Ordinary income
Net income
EPS (yen)
Dividend per share (yen)53,007
1,223
1,290
658
40.3
8.5

56,487 3,480
630
1,853
503
1,793
54
712

6.6
51.5
39.0
8.2

42.4
8.5

FY13 1Q-2Q
forecast

FY13 3Q-4Q
forecast

26,824608
580
178

29,662
1,244
1,213
534

10.6
0.0

31.8
8.5

 In the Factory business, several new large contract projects will start up from 2Q
 In the Real Estate business. handover of two properties will commence in June of thecurrent period
 Increases in sales and profits are forecast for the full-year as return of upfront investments
will appear
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved20

FY2013 Business Forecasts by Segment
Million yen, %FY12/12actualTechnology
business

R&D businessInform ation
te chnology &telecom m unicat
ions business

Real estatebusiness

OthersTotal

17,893

YoY
ChangePct. Change

FY13/1Q～2Q
forecast

FY13/3Q～4Q
forecast

3,595

20.1

9,241

12,246

653

133.5

283

859

Segment income

489

21,488
1,142

Profit margin

2.7%

5.3%

－

－

3.1%

7.0%

1,004

16.2

3,219

3,982

217

61.0

200

373

Net sales

Factorybusiness

FY12/13
forecast

Net sales

6,197

Segment income

356

7,201
573

Profit margin

5.7%

8.0%

－

－

6.2%

9.4%

Net sales

2,984

35.8

1,884

2,168

269

4,053
343

1,069

Segment income

74

27.5

110

232

Profit margin

9.0%

8.5%

－

－

8.5%

13.0%

11,658

△658
△108

△ 5.6
△ 26.5

5,706

5,293

183

116

－

3.2%

2.2%

△ 6.6
△ 15.6

4,474

3,740

288

102

－

6.4%

2.7%

△ 17.4
△ 2.8

2,297

2,230

83

122

－

3.6%

5.5%

6.6

26,82429,662

51.5

△540
608

△561
1,244

2.3%

4.2%

Segment income

408

11,000300

Profit margin

3.5%

2.7%

Net sales

8,794

Segment income

462

8,215
390

Profit margin

5.3%

4.7%

Net sales

5,479

Segment income

211

4,528
205

Profit margin

3.9%

4.5%

Net sales

53,007

3,480

Elimination or corporate

△972
1,223

56,487△1,202
1,853

2.3%

3.3%

－

Net sales

Operating income

Operatingmargin

－

△579
△72
－

△951
△6
－

－
630

* Amortization of DOT goodwill on consolidated basis was transferred to the R&D segment from the cost of headquarters
initially placed.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

21

Measures from 2Q for Each Segment

Human
ResourcesandEducation■ Factory business: Turn a profit for new large-scale contract projects,
including those in the fields of logistics, and electrical and electronics■ Technology business: Promote orders for sales related to information
services and automobiles■ R&D business: Synergies are becoming apparent with DOT, whichbecame a subsidiary last year

IT & Telecommunications■ Promote scrap & build of existing stores, and strengthen profitability
improvements of stores

Real
Estate■ Tokyo metropolitan area: Sales promotion for handover of 2 condominium
properties in the current period (from June)■ Continue purchasing and community-based business activities that take
into consideration business profitability

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

22World Intec Corporate Profile
Company

EstablishedWORLD INTEC CO., LTD.
4F No.2 Quest Building, 1-3-9 Bashaku, Kokurakita Ward, Kita-Kyushu
City, Fukuoka Prefecture
February 12, 1993

CEO

Eikichi Iida

Head Office

Human resources business centered on manufacturing (R&D,
Main Businesses Design/development, production technology, manufacturing,logistics, sales, after-sales services)
Capital¥700 million (as of December 31, 2012)

Workforce

10,584 (consolidated/ as of December 31, 2012)

Locations

60 (consolidated/ as of December 31, 2012)

Listed Date

February 9, 2005 (JASDAQ Stock Exchange / Stock Code 2429)《Corporate Symbol》
WORLD INTEC’s corporate symbol represents the
cutting edge in the effort to create new meaning to workand the joys associated with one’s vocation. The blue
sphere stands for our engineering expertise and the trust
we have accumulated, while the yellow figure symbolizes
further growth and development, as well as the corporate
ideal we aim to realize.

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

23

For more information

Akihiko Omoto
Public Relations and Investor Relations Department
Business Administration Division
World Intec Co., Ltd.

TEL

03-3516-1122

E-MAILirinfo＠witc.co.jp

URL

http://www.witc.co.jp/

No information in this presentation is provided for the purpose of soliciting purchases or sales of World
Intec stock. Furthermore, opinions, forecasts and other information not based on historical facts represent
the judgments of World Intec at the time this presentation was prepared. World Intec does not guarantee
the accuracy of this information and may revise this information at any time without prior notice. World
Intec and other providers of this information assume no responsibility whatsoever for any losses incurredin association with the information in this presentation.

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24