Business Results
for the First Half of Fiscal Year ending December 31,2008

August 21,2008
WORLD INTEC CO.,LTD.

ＪＡＳＤＡＱ（２４２９）Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

Table of Contents

1. Business Results Summary of First Half, FY12/08・・・・

1～8

2. Full-Year Business Forecast for FY12/08・・・・・・・・・・・・

9～11

3. Changes in the Environment Surrounding the Manufacturing
Outsourcing Market・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

12～17

4. Our Outsourced Contracting Strategy and Expertise・・ 18～28
5. (Reference) Our Group Strategy・・・・・・・・・・・・・・・・・・・・・ 29～32

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

2

Business Results Summary of First Half, FY12/08

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved3Consolidated Business Results of 1HF, FY12/08 （Year-on-Year）
Net Sales

Semiconductor- and Precision Instruments-related Businesses, along with
Information Technology & Telecommunication Services, performed well.

Operating
IncomeLower cost of sales and containment of SG&A expenses combined for a significant
improvement in operating income.

Ordinary
IncomeSpurred by growth in operating income, ordinary income also improved.

Interim Net
IncomeInterim net income growth proceeded as expected, with a decrease in earnings
tax a key contributing factor.

(Consolidated)(JPY Million)

Net sales
Opearating income
Operating income margin

Ordinary income
Ordinary income margin

Interim Net Income
Net income margin

FY6/07

FY6/081HF Actual

1HF Actual

21,936404

25,552
1,017

1.8%

4.0%

773

1,230

3.5%

4.8%

256

564

1.2%

2.2%

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

Year-on-Year
Amount

Ratio

3,616
612

151.2%

456

59.0%

308

120.4%

16.5%

4

Consolidated Net Sales and Operating Income Margin▌ Lower SG&A expenses were a major contributor in the improvement ofconsolidated net sales and income margins from the last quarter of FY12/07.
Net Sales
Operating Income Margin（JPY Million）

25.0%
14,00012,83512,00011,413

13,107
12,44520.0%

11,726

10,5239,950

10,00015.0%

8,526 8,673
7,700

8,000

6,000

10.0%

6,635
5,969
8.6%
5.4%

4,905 5,151

1.0%

2.4%

2.2%

2,000

5.0%

3.6%

3.8%

3.3%

4,000

5.0%

2.9%

2.2%

2.1%

2.9%
0.0%

-0.1%

0

-5.0%
Q1

Q2

Q3

FY12/05

Q4

Q1

Q2

Q3

FY12/06

Q4

Q1

Q2

Q3

FY12/07

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

Q4

Q1

Q2

FY12/085

Summary of Business Results by Business Segment (Year-on-Year)By business segment

Year-on-Year Change

FY6/07

FY6/081HF Actual

1HF Actual

14,26915,777

1,507

10.6%

758

1,207

449

59.3%

5.3%

7.7%

3,356

3,732

375

11.2%

144

259

114

78.9%

4.3%

6.9%

Net sales

741

900

158

21.4%

Operating income

87

75

(12)

-13.9%

Operating income margin

11.8%

8.4%

Information Technology & Net sales
Telecommunications
Operating income
Services
Operating income margin

3,038

4,472

1,433

47.2%

0

54

53

-

0.0%

1.2%

530

671

141

26.6%

(84)

(29)

55

-

-15.8%-4.4%

Net sales

21,93625,552

3,616

16.5%

Elimination

(501)

(549)

(48)

-

Operating income

404

1,017

612

151.2%

1.8%

4.0%(JPY Million)

Manufacturing Temporary Net sales
Placement/Contracting
Operating income
Operating income margin

Technology Oriented
Placement

Net sales
Operating income
Operating income margin

R&D Placement

Marketing Sales Services Net sales
Operating income
Operating income margin

Total

Operating income margin

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

AmountRatio

6

Summary of Consolidated Balance Sheets(Consolidated)

FY6/07
1HF Actual

FY6/081HF ActualYear-on-Year
AmountTotal Assets

11,841

12,780938

Current assets

10,178
4,163
5,258
331
425
1,662
481
343
837

10,567
3,947
5,541
493
584
2,213
849
397
965

Total Liabilities

7,747

7,712

(34)

Current liabilities

7,138
513
923
3,904
447
411
937
608
494
98
16

-

6,884
627
720
3,763
612
389
771
828
611
196
18
2

(253)
113
(202)
(141) ← The same as Cash and deposits.
165(22)(165) ← The same as Cash and deposits.
219
116
98
2
2

4,094

5,067

973

696
859
2,038

0
0
975
(70)
(4)
72

938

(JPY Million)

Cash and deposits
Trade notes and accounts receivable
Inventories
OthersFixed assets
Total property and equipment
Total intangible assets
Total investments and other assets

Trade notes and accounts payable
Short-term borrowings
Accured expenses
Income taxes paybableAccrued consumption taxes
OthersLong-term liabilities
Long-term debt
Liability for retirement benefits
Accrued retirement benefits for directors and corporate auditors
OthersTotal Net Assets

Treasury stock-

Valuation, translation adjustments and other

4
495

696
859
3,014
(70)
(0)
567

11,841

12,780Common stock
Capital surplus
Retained earnings

Minority interests

Total Liabilities and Net Assets

388(215) ← Due to payment arrangements being made in Julybecause FY12/07 closed on a holiday
283
at the end of June.
161
158
550
368
53
128

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

7Summary of Consolidated Statements of Cash Flows
FY6/07

FY6/08Year-on-Year

1HF Actual

1HF Actual

AmountCash flows from operating activities

284

61

(222)

Income before income taxes and minority interests

763

1,223

459

Depreciation

50

79

28

(Consolidated)(JPY Million)(Increase)/Decrease in trade accounts receivable(1,090)

(389)

701

(Increase)/Decrease in inventories

(218)

(98)

120

Increase/(Decrease) in trade accounts payable

294

124

(170)

Increase/(Decrease) in accrued expenses

496

253

(243)

Increase/(Decrease) in accrued consumption taxes

(109)

(268)

(158)

Others357(175)(533) ← The same as Increase/(Decrease) in accured expenses.

Interest and dividend income

1

6

5

Interests paid

(5)

(6)

(1)

Income taxes paid

(259)

(686)

(426)

Cash flows from investing activities

150

(259)

(108)

Payments into time deposits

(42)

(42)

0

Purchase of property and equipment

(169)

(38)

131

-

(107)

(107)

(52)

(29)

22

4

108

104

Cash flows from financing activities

526

(201)

(727)

(Increase)/Decrease in short-term borrowings

(340)

166

506

Proceeds from long-term debt

1,000

-

(1,000)

Repayments of long-term debt

(62)

(296)

(234)

Others

(71)

(71)

0

1

1

0

Purchases of investment securities
Net increase/(decrease) in guarantee deposits
OthersForeign currency translation adjustments on cash and cash equivalents
Increase/(Decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
(Decrease) in cash and cash equivalents due to exclusion of consolidated
subsidiaries

Cash and cash equivalents, end of year

552

(247)

(800)

3,568

4,152

584

－

0

0

4,120

3,905

(215)

← Due to payment arrangements being made in Julybecause FY12/07 closed on a holiday at the end of June.

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

8Full-Year Business Forecast for FY12/08

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

9Summary for Consolidated Business Forecast of FY 12/08▌ Although corporate uncertainty over economic prospects began todeepen from the second half of FY12/08, we see the oncoming
shakeout in the manufacturing outsourcing industry as an opportunity
for business growth and believe we can achieve the projected goals
in our initial forecast for the fiscal year by micro-targeting growthindustries and sub-sectors.

(Consolidated)(JPY Million)
Net sales
Opearating income
Operating income margin

Ordinary income
Ordinary income margin

Net income
Net income margin

FY12/07
Actual
46,497

FY6/08
FY6/081HF Actual 2HF Forecast
25,552
25,523

FY12/08
Forecast
51,075

1,345

1,017

1,058

2,075

2.9%

4.0%

4.1%

4.1%

1,772

1,230

992

2,222

3.8%

4.8%

3.9%

4.4%

741

564

518

1,083

1.6%

2.2%

2.0%

2.1%

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

Year-on-Year Change
Amount
4,578

Ratio
9.8%

730

54.3%

450

25.4%

341

46.0%

10

Summary for Business Forecast by Business Segment
By business segment(JPY Million)
Manufacturing Temporary
Placement/Contracting

FY6/08

FY12/08

Year-on-Year Change

Actual1HF Actual

2HF Forecast

Forecast

AmountRatio

29,974

15,777

16,98432,761

2,787

9.3%

Operating income

1,959

1,207

1,327

2,534

574

29.3%

6.5%

7.7%

7.8%

7.7%

7,069

3,732

4,316

8,048

978

13.8%

402

259

219

478

76

19.0%

5.7%

6.9%

5.1%

5.9%

1,576

900

1,200

2,100

523

33.2%

167

75

96

171

4

2.4%

10.6%

8.4%

8.0%

8.2%

6,852

4,472

2,546

7,018

165

2.4%

(90)

54

92

146

237

-

-1.3%

1.2%

3.6%

2.1%

Net sales
Operating income
Operating income margin

R&D Placement

FY6/08Net sales
Operating income margin

Technology Oriented
Placement

FY12/07

Net sales
Operating income
Operating income margin

Information Technology &Telecommunications
Services

Net sales

Marketing Sales Services

Net sales

1,024

671

476

1,147

123

12.0%

Operating income

(150)

(29)

63

34

184

-

-14.7%

-4.4%

13.2%

3.0%

Net sales

46,49725,552

25,52351,075

4,578

9.8%

Elimination

(942)

(549)

(740)

(1,289)

347

-

1,345

1,017

1,058

2,075

730

54.3%

2.9%

4.0%

4.1%

4.1%

Operating income
Operating income margin

Operating income margin

Total

Operating income
Operating income margin

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

11Changes in the Environment

Surrounding the Manufacturing Outsourcing Market

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

12Industry Sub-Segment
White-Color

Market size:
JPY 3.3 trillion

Temporary Staffing

Placement of Engineers

・Staff Service Holdings

・ MEITEC CORPORATION

・Tempstaff Co., Ltd.

・Altech Corporation

・Pasona Group Inc.

・JAPAN TECSEED CO., LTD.

・Adecco Ltd.

・VSN・ CB Business Division (sales staff
dispatching)・ WITH COMMUNICATION CO.,LTD.

Market size:
JPY 725 billion

・R&D Placement
・Technology Oriented
Placement

Short-termLong-term
Manufacturing Temp

Light Duty /Placement / Contracting

Short-term Staffing

・United Technology Holdings
Co., Ltd.

・The Goodwill Group, Inc.
・Fullcast Co., Ltd.

Market size:
JPY 5 trillion

・Out-Sourcing Inc.

・Nippon Manufacturing Service
Corporation
・FREE WORK Co., Ltd.

Blue-Color
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

・ Manufacturing Temporary
Placement/Contracting
・ WORLD INTEC TAIWAN CO., LTD.
・ WORLD EXPERTS CO., LTD.

Source: WORLD INTEC CO., LTD.

13

The 2009 Issue and Its Outlook▌ Contracts for dispatching of temporary worker effective for three years

The client-manufacturer then has four options
after the third year:

Temporary worker dispatching
contract
Contract
InitiatedYear OneYear TwoYear Three

Outsourced
contracting
Directly hired
workers(seasonal or contract
employees)▌ The largest number of three-year

Cooling off period

contracts is set to conclude
between 2009 and 2010.
 Manufacturers must thenchoose among the four options.

Cancellation

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

14

Projected Market Changes▌ The 2009 Issue to trigger major market changes

Manufacturers to employ workers directly(as seasonal or contract employees)

Manufacturing
Outsourcing
MarketMarket contraction is expected to accelerate temporarily with the increasein directly hired workers (seasonal and contract employees).

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

15Mid-term Outlook for Manufacturing Outsourcing Market▌ Providers that meet regulatory standards and have adopted outsourced

contracting business models will retain their competitive superiority.
Market to contract

Growth margin

Existing client-manufacturers

Manufacturers are hiring personnel directly, primarily with seasonal or contract employees, yet the law
mandates that these employees must be upgraded to permanent positions after three years. We projectthat these companies will introduce outsourced contracting or temporary dispatching staff before thethree-year deadline, which we see as a window of major opportunity for us.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

16Our Initiatives▌ Outsourced contracting to be strategically promoted through UKEOI (manufacturingcontracting) Statements, which are based on a business model that comply fully withgovernment regulations.
▌ Convert 65% of our contracts with client-manufacturers to outsourced contracting

contracts by the end of 2009.
100

（％）

Convert 65% of contracts with existingclients to outsourced contracting
contracts!

90
80
70

60

Temporary Worker
Dispatching
Outsourced Contracting

50
40

30
20
10
0
Dec.07

Jun.08

Dec.08

Dec.09Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

17Our Outsourced Contracting Strategy and Expertise

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

18Four Main Outsourced Contracting Principles and Their Implementation

Establish appropriate payment
contracts for leased facilities andequipment, etc., and conclude
contracts for associatedmaintenance4. Contract ofleasedfacilities andequipment,
etc.

Carry out manufacturing
operations only with workers
that we are legally allowed tosupervise

1. Resident
controllers
deployed

Internally
Certified UKEOI(manufacturingcontracting)
Facilitator

3. Prohibit
overlapping
activities incontracting
serviceparameters

As stipulated in the Guidelines for
Notification #37, resident
controllers positioned onsite will
be selected.

2. Establishingoutsourced
manufacturing
operations
serviceparameters
Need to establish parameters ofoutsourced manufacturingcontracting service with clientmanufacturer, hire and assign theoutsourced contracting workers,
and prepare segmentation zone
diagrams (based on proprietary
standards) that third parties canreadily acknowledge

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

19

Major Challenges for Outsourced Contracting









Control and supervision
Contracted outsourcing
service parameters
Facilities for contracted
outsourcing

Education/trainingof human resources
Production volume (adequate
volume for order placement)
Leading-edge production
technologyComplianceContracted
outsourcing
worksites

Others

Shifting from
temporaryworkers to
outsourced
contracting

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

Degree of autonomy
Quality assurance
Operating organization

Institute techniques adopted
by human resources
development industry
Carry-over of skills,
techniques and technologies
Unit price (temporary staffing< outsourced contacting）

20

Sources for Competitiveness, Overcoming Challenges
Skills and aptitude for outsourced contracting▌ Four definitive outsourced contracting principles andtheir practice by UKEOI Facilitators▌ Clearly-defined operating procedures and administrative

processes based on UKEOI Statements

Outsourced contracting
design diagram
Outsourced
contracting unit map

Administrative flows

Charts to control flow
process for outsourced
contracting

Our outsourced
contracting service
is customized tomeet theindividualized needsof the clientmanufacturer andfield of service.

Flows for production control
Flows for unit price setting
Flows to scheduleoutsourced contracting
conversion

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved21Outsourced Contracting Conversion Process
Convert from temporary workers
to outsourced contracting

Lateral development

Our project team develops contracting
plans and proposes them to our field
office.
Negotiations with client-manufacturer

Temporary workers
dispatched at
manufacturing site

Outsourced
contracting(Commencement
Phase)

Upon launch of an outsourced
contracting site, extend outsourced
contracting services laterally to otherproduction phases and fields

Outsourced
contracting(Year One)

Outsourced
contracting(Year Two)

Upgrading quality of manufacturingStart up field office
UKEOI Facilitator starts up outsourced
contracting field office.
① Regulatory compliance ensured through
UKEOI Statements② Based on Contract Work Code at
Manufacturing Sites, propose startup plan.

① Establish efficient manufacturing
program② Kaizen (continuous innovation)
activities for manufacturing operations③ Kaizen activities for quality assurance④ Lateral application of kaizen casestudies

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

22Profitability Enhancement Simulation through Outsourced Contracting
Temporary workers
dispatched at
manufacturing site

Sales
Profitability

Outsourced
contracting(Commencement Phase)Outsourced
contracting(Year One)

Outsourced
contracting(Year Two)

100%

107%

107%

107%

4%～5%

5%～6%(*)

6%～7%

7%～8%

Corresponding with the improvement to our existing client’s
worksite profitability, we seek to expand our outsourced
contracting service parameters with the client from 2009 to 2010.
▌ Cost reduction cases following outsourced contracting

commencement phase Reduced administrative costs: Efficient use of redundant staff
 Reduced operational man-hours: Lower cost of sales and other benefits

achieved through improved operating efficiency
 Superior production machinery capacity utilization ratio: Improved operator

skills translates into more efficient machinery operation(*) Outsourced contracting can also be commenced with lower profitability
due to insufficient productivity and skills at this stage.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

23

Future Prospects for Outsourced Contracting

Cast Members
・ Provides career enhancement
opportunities
・ Provides higher remuneration
・ Provides long-term
employability

Client-Manufacturers

WORLD INTEC
・ Locks in client-manufacturers tolong-term contracts
・ Improves profitability
・ Ensures labor pool mobility
・ Develops and enhances
manufacturing knowledge base

・
・
・
・

Transforms fixed labor costs into
adaptive cost
Enables concentration on corebusinesses
Improves flexible responses to
production fluctuations
Improves situational awareness ofother industries

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

24

(Reference) Our Group Strategy

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

25

JAPAN TECSEED CO., LTD.
The purpose of business alliance:
mutual use of management resources

Human resources
Marketing/sales activities
 Business operations productivity
enhancement
 Business focus enhancement
 Creation of joint services
 Additional factors facilitating otherbusiness developments

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

26

GEOGRAPHIC INFORMATION OF KYUSHU, INC.
Purpose of merger:
Provides substance to our “Shaping the Way People Live” vision Personnel exchanges through evolution of Geographic

Information System (GIS) technologies and expertise Expansion of employment opportunities for disabled citizens
 Expansion of sales activities in B2B market(Business Outline)

Map information system; map data entry, other dataprocessing, etc.



Location survey; aerial mapping survey; digital mapping,etc.

Construction consultancy; highway, urban planning, etc.



Cartography; printed material; video production; birds-

Representative: Eikichi Iida
Shareholder Composition：WORLD INTEC CO., LTD. (51%); Fukuoka
Prefecture (12%); Fukuoka City (12%); Kyushu
Electric Power Co., Inc. (10%); THE NISHINIPPON CITY BANK, LTD. (4%); Bank ofFukuoka, Ltd. (4%); Saibu Gas Co., Ltd. (3%);
NIPPON TELEGRAPH AND TELEPHONE WEST
CORPORATION (2%); NTT DATA NCB
Corporation (2%)

eye-view mapping, etc.

Aerial photo using GIS technologies
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved27

Pc Assist Corporation

Purpose of merger: 2 synergy effects
 Providing career path enhancement forengineers of Technology Oriented
Placement Business Division
 Shifting employees of ManufacturingTemporary Placement/Contracting
Business Division to engineering fields(Business Outline)
 WIN Business: Operation of “Win School” PC
instruction network that offers instruction in CAD andother applications at 86 schools nationwide
 CAP Business: Provides employee instruction
programs for corporate clients

HP of Pc Assist Corporation

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

28

Contact Information
WORLD INTEC CO., LTD.
Hiroshi Kudo (Mr.)
Corporate Spokesperson
Corporate Management OfficePhone+81-3-3516-1122

E-Mailirinfo＠witc.co.jp

URL

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

A cautionary note on forward-looking statements:
This material contains forward-looking statements on the Company and its future businessperformance. The forecasts are developed from a broad base of information collected and collatedby the Company as of the day the business results are announced. Actual results, however, maydiffer materially from those projected. Neither the Company nor provider of the information contained
herein may be held liable or responsible for any loss or damages resulting from investment decisions
based on the content of this presentation.

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved29