Consolidated Financial Results for 2020
[Japanese GAAP]
February 8, 2021

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, Director, Business Management Division Manager
Tel: +81-92-474-0555
Scheduled date of Annual General Meeting of Shareholders:March 19, 2021
Scheduled date of payment of dividend:
March 22, 2021
Scheduled date of filing of Annual Securities Report:
March 22, 2021
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for analysts)
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for 2020 (January 1 to December 31, 2020)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit%

Million yen

2020
143,5715.3
2019136,319 (4.6)
Note: Comprehensive income (millions of yen)

Million yen

6,251
4,730

Profit attributable toowners of parent

Ordinary profit
Million yen

%

32.1
6,786
(35.8)
4,805
2020: 5,960 (up 97.2%)%

41.2(34.7)Net income per share

Diluted net income
per share

Yen

Yen

%

5,913 100.0
2,956 (36.4)
2019: 3,022 (down 34.2%)

Ordinary profit on Operating profit tototal assets
net sales

Return on equity

2020
341.35339.862019
175.59174.25
Reference: Equity in earnings of affiliates (millions of yen)
2020: -

Million yen

%

%

%

23.1
13.5

8.2
5.7
2019: -

4.4
3.5

(2) Consolidated financial position
Total assets

Net assets

Million yen

As of Dec. 31, 2020
79,157
As of Dec. 31, 201987,352
Reference: Shareholders’ equity (millions of yen)

Equity ratio

Million yen

Net assets per share%

30,061
23,944As of Dec. 31, 2020: 28,589

Yen

36.1
1,638.03
25.9
1,345.71
As of Dec. 31, 2019: 22,662(3) Consolidated cash flows
Cash flows fromoperating activities
2020
2019

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

13,7702,708(1,030)(2,489)(6,604)(2,597)

22,817
16,513

2. Dividends
Dividends per share
2Q-end3Q-end Year-end

1Q-endTotal
Payout ratio Dividend on equity
dividends (consolidated) (consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00
0.00
0.00

-

52.70
101.7078.70

52.70
101.70
78.70

887
1,775

30.0
30.0
30.0

4.1
6.8

2019
2020
2021 (forecast)

3. Consolidated Forecast for 2021 (January 1 to December 31, 2021)
Net salesFirst half
Full year

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

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

Yen

63,657150,194(10.1)
4.6

1,302
6,465

(53.0)
3.4

1,283
6,388

(55.3)
(5.9)

886
4,573

(64.5)(22.7)

50.81
262.02

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): Yes
Newly added: 1 (JW Solution Co., Ltd.) Excluded: 2 (HOEIKENSETSU Co., Ltd., Farm Co., Ltd.)(2) 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

(3) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Dec. 31, 2020:

17,566,900 shares

As of Dec. 31, 2019:

16,961,600 shares

As of Dec. 31, 2019:

121,000 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2020:

113,477 shares

3) Average number of shares during the period
2020:

17,322,494 shares2019:16,837,383 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for 2020 (January 1 to December 31, 2020)(1) Non-consolidated results of operations
Net sales
2020
2019

Million yen%

Million yen%

Million yen%

Million yen

%

1,759
1,652

6.5
0.3

(137)
37

(77.5)

1,973
4,049

(51.3)
1.5

2,463
3,986

(38.2)
2.7

Net income per share
2020
2019

(Percentages represent year-on-year changes)
Ordinary profit
ProfitOperating profit

Diluted net income per
share

Yen

Yen

142.23236.76

141.61
234.95(2) Non-consolidated financial position
Total assets

Net assets

Million yen

As of Dec. 31, 2020
42,185
As of Dec. 31, 2019
41,429Reference: Shareholders’ equity (millions of yen)

Equity ratio

Million yen

18,615
16,211
As of Dec. 31, 2020: 18,565

Net assets per share
%

Yen

44.0
1,063.73
38.8
955.42As of Dec. 31, 2019: 16,089* The current financial report is not subject to audit by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements, and other special items
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 regard ing future performance. Actual results
may differ materially from the forecasts for a number of reasons. Please refer to “1. Overview of Results of Operations, (5)Outlook” on page 6 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for financial results
The Company plans to hold a financial results meeting for institutional investors and analysts on Tuesday, February 16, 2021.
Supplementary materials to be distributed at this event will be disclosed on the same d ay, using the Timely Disclosure network(TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

4(3) Cash Flows

5(4) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years

5(5) Outlook

6

2. Management Policy

6

3. Basic Approach for the Selection of Accounting Standards

8

4. Consolidated Financial Statements and Notes

9(1) Consolidated Balance Sheet

9(2) Consolidated Statements of Income and Comprehensive Income

11

Consolidated Statement of Income

11

Consolidated Statement of Comprehensive Income

12(3) Consolidated Statement of Changes in Equity

13(4) Consolidated Statement of Cash Flows

15(5) Notes to Consolidated Financial Statements

17

Going Concern Assumption

17

Segment and Other Information

17

Per-share Information

20

Subsequent Events

20

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

1. Overview of Results of Operations(1) Results of Operations
There was a sharp downturn of the Japanese economy beginning in the spring of 2020 because of theunprecedented threats posed by COVID-19. Although the economy subsequently began to recover slowly, theeconomic condition is still challenging due to a new wave of infections and the outlook remains uncertain.
Although the COVID-19 crisis had not a little impact on business activities, sales and earnings of the World
Holdings Group were higher than in 2019 due to the strategies of every business segment of the group. Most
significant was the ability of the core Human Resources and Education Business to accurately identify customers’
needs as market conditions evolved. This made it possible to strategically channel investments to key businesssectors. These activities supported the performance of the entire group, resulting in the growth of sales andearnings despite extremely challenging market conditions.
Net sales increased 5.3% year on year to 143,571 million yen. Operating profit increased 32.1% to 6,251 million
yen, ordinary profit increased 41.2% to 6,786 million yen, and profit attributable to owners of parent increased
100.0% to 5,913 million yen.
A subsidy received concerning the COVID-19 pandemic totaling 417 million yen is included in the ordinary
profit, not the operating profit.
Factory Staffing Business
Sales and earnings were negatively affected by a smaller than planned number of projects due to the COVID-19
crisis, the policy of placing priority on preserving the jobs of our workforce, and other factors. This was offset
mainly by the benefits of the continuing strategic focus on the 5G mobile communications sector and the strong
performance of the logistics category due to the growth of purchases by people who were staying home for safety.
Overall, sales increased but earnings declined from one year earlier.
This business made up-front investments to recruit more people, open more business sites and take other actions
for more growth in two strong market sectors: semiconductors, chiefly involving 5G, and machinery. There werealso investments in the core logistics sector, including for training programs for people needed to open new
business sites, to build a base for growth starting in 2021.
As a result, sales were 55,102 million yen, up 10.2% year on year and segment profit decreased 1.7% to 2,632
million yen. (The segment profit is 2,767 million yen after including a COVID -19 subsidy, which is 3.3% higher
than in 2019.)
Technology Staffing Business
There was a temporary increase in expenses in this business as the workforce utilization rat e declined briefly
because the number of projects fell below the initially planned level due to COVID -19. The performance of thisbusiness was supported by growth in the semiconductor manufacturing equipment, information andtelecommunications services, construction engineering, and other industries. In addition, we were able to chargehigher fees because of new and more advanced skills of personnel due to training programs. The result wasincreases in sales and earnings.
This business added new training programs that match changes taking place in its markets, established new
training structure for giving the current workforce new and more advanced skills for even higher quality, and took
other actions to build a sound base for growth.
Sales were 17,003 million yen, up 0.6% year on year and segment profit increased 14.7% to 2,019 million yen.
(The segment profit is 2,173 million yen after including a COVID-19 subsidy, which is 23.4% higher than in
2019.)
R&D Staffing Business
Sales and earnings increased as the strong performance of the core research personnel staffing sector more thanoffset a decline in clinical research outsourcing projects caused by COVID -19.
Highly effective marketing activities in the research personnel staffing sector resulted in an increase in the2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

number of orders despite the negative effects of the COVID-19 crisis. In addition, investments for recruiting more
people and other activities have positioned this business sector for more growth in 2021.
Sales were 7,200 million yen, up 1.3% year on year, and segment profit increased 18.6% to 843 million yen. (Thesegment profit is 867 million yen after including a COVID-19 subsidy, which is 21.9% higher than in 2019.)
Sales & Marketing Staffing Business
The performance of this business was good in the light duty, general merchandise store and call center categories.
However, a decrease in the number of projects involving apparel and the big downturn in the tourism industry,both caused by COVID-19, negatively affected performance. The result was higher sales and lower earnings.
Sales were 3,835 million yen, up 2.0% year on year, and segment profit was 18 million yen, down 32.5% year on
year. (The segment profit is 44 million yen after including a COVID-19 subsidy, which is 61.4% higher than in
2019.)
Real Estate Business
The COVID-19 crisis reduced the number of residences sold in the renovation business but sales of land forbusiness use and other properties in the core real estate development category were generally as planned. Sales
and earnings increased as a result.
We are purchasing properties very carefully while closely watching movements in real estate prices. We are alsoestablishing a base for asset management and other financial businesses involving real estate. To position t his
business for the expected rebound of the real estate market beginning in 2021, we made progress in building abase for switching to an offensive stance with measures that include a committed credit facility for access tofunds as needed.
Sales were 48,081 million yen, up 14.3% year on year, and segment profit increased 143.1% to 3,550 million yen.
(The segment profit is 3,577 million yen after including a COVID -19 subsidy, which is 145.0% higher than in
2019.)
Information and Telecommunications BusinessIn the mobile phone shop business, the largest component of this segment, the number of phones sold decreased
because of restrictions on shop operations due to COVID-19. Operations were severely limited by COVID-19 in
the corporate solutions business too. Although sales in this segment decreased because of shop closings andconsolidations, structural reforms in prior years improved the profitability of this business. The result was lower
sales and higher earnings.
Sales were 9,133 million yen, down 26.0% year on year, and segment profit was 240 million yen, compared witha segment profit of 10 million yen in 2019. (The segment profit is 254 million yen after including a COVID -19
subsidy.)
OthersAgricultural parks were forced to suspend operations following the declaration of a state of emergency in April
2020 and in response to requests from local governments due to COVID-19, resulting in closures during thebusiest time of the year. Even after parks reopened, performance was held down for a while by re quests forpeople to stay home and the downsizing or suspension of some park attractions. The result was a big decline in
the performance of these parks. Agricultural parks have been using appropriate activities to attract people bypromoting the ability of their outdoor facilities to host people while avoiding close contact among visitors. Due tothese initiatives, the performance of parks has been recovering steadily, including a big increase in park
attendance compared with one year earlier beginning in the fourth quarter of 2020.
Sales were 3,214 million yen, down 22.0% year on year, and there was a segment loss of 200 million yen,
compared with a segment profit of 132 million yen in 2019. (The segment loss is 160 million yen after including
a COVID-19 subsidy.)

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

(Millions of yen)

Human
ResourcesandEducation
Business

2020
Plan

2020
ResultVs. planYear-on-year change
Amount%Factory
Staffing
Business

Net sales

50,001

54,394

55,102

708

5,101

10.2

Segment profit

2,679

2,603

2,632

29

(46)

(1.7)

(Profit margin)(5.4%)(4.8%)(4.8%)

Technology
Staffing
Business

Net sales

16,902

16,99817,003

5

100

0.6

58

258

14.7

R&D
Staffing
Business

Net sales

Sales &
MarketingStaffing
Business

Net sales

Subtotal(Reference)

Real EstateBusiness

2019
ResultReal EstateBusiness

Segment profit

1,761

1,960

2,019

(Profit margin)(10.4%)(11.5%)(11.9%)

7,108

7,222

7,200

(21)

92

1.3

8

132

18.6

Segment profit

711

835

843

(Profit margin)(10.0%)(11.6%)(11.7%)

3,761

4,005

3,835

(170)

74

2.0

Segment profit

27

51

18

(33)

(8)

(32.5)(Profit margin)(0.7%)(1.3%)(0.5%)Net sales

77,774

82,62083,142

521

5,368

6.9

63

335

6.5

Segment profit

5,179

5,451

5,515

(Profit margin)(6.7%)(6.6%)(6.6%)Net sales

42,08247,71348,081

368

5,998

14.3

180

2,089

143.1

Segment profit

1,460

3,369

3,550

(Profit margin)(3.5%)(7.1%)(7.4%)

Information
andTelecommunications
Business

Information Net sales
andSegment profit
Telecommunications(Profit margin)
Business

12,344

9,222

9,133

(89)

(3,210)(26.0)

10

237

240

3

229

2,097.3(0.1%)(2.6%)(2.6%)

4,118

3,002

3,214

212

(904)

(22.0)

OthersOther
Business

Segment profit

132

(339)

(200)

139

(332)

-

(Profit margin)(3.2%)--Net sales
Elimination or
corporate
Operating profit

136,319

142,558

143,571

1,012

7,251

5.3

(2,052)(2,711)(2,854)

(142)

(801)

-

4,730

6,006

6,251

244

1,520

32.1

(Profit margin)(3.5%)(4.2%)(4.4%)Net sales

Total(2) Financial Position
AssetsTotal assets decreased 8,195 million yen from the end of 2019 to 79,157 million yen at the end of 2020. This was
mainly due to an increase of 6,303 million yen in cash and deposits, and decreases of 10,625 million yen in realestate for sale and 4,087 million yen in real estate for sale in process.
Liabilities
Total liabilities decreased 14,312 million yen from the end of 2019 to 49,095 million yen. This was mainly due todecreases of 10,496 million yen in short-term borrowings and 8,843 million yen in advances received, andincreases of 1,615 million yen in accrued consumption taxes and 3,481 million yen in long-term borrowings.
Net assets
Net assets increased 6,116 million yen from the end of 2019 to 30,061 million yen mainly due to increases of 457
million yen in share capital, 458 million yen in capital surplus and 5,066 million yen in retained earnings.

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

(3) Cash Flows
Cash and cash equivalents at the end of 2020 increased 6,303 million yen from the end of 2019 to 22,817 million
yen.
Cash flows from operating activities
Net cash provided by operating activities was 13,770 million yen. Main positive factors include profit before
income taxes of 6,768 million yen, a 13,508 million yen decrease in real estate for sale, a 955 million yen
increase in accrued expenses, a 1,862 million yen increase in accrued consumption taxes and income taxes refundof 727 million yen. Major negative factors include a 710 million yen increase in trade receivables, an 8,845
million yen decrease in advances received and income taxes paid of 2,799 million yen.
Cash flows from investing activities
Net cash used in investing activities was 1,030 million yen. Main positive factors include proceeds from sales ofshares of subsidiaries resulting in change in scope of consolidation of 2,029 million yen. Main negati ve factors
include payments of 1,164 million yen for purchase of property, plant and equipment and 1,912 million yen forpurchase of investments in non-consolidated subsidiary.
Cash flows from financing activities
Net cash used in financing activities was 6,604 million yen. Main positive factors include proceeds of 12,189
million yen from long-term borrowings. Main negative factors include a net decrease of 7,344 million yen in
short-term borrowings, repayments of long-term borrowings of 11,412 million yen and dividends paid of 887
million yen.
Reference: Cash flow indicators
2016
Equity ratio (%)
Market value-based equity ratio (%)
Interest-bearing debt to cash flow ratio (%)

19.4

2017

2018

22.3

26.3

46.8

75.3

(1,159.2)

522.8

2019

2020

25.9

36.1

45.3

37.3

403.5

1,340.2

43.2
212.6

(21.7)
36.3
14.7
Interest coverage ratio (times)
45.7
81.3
Equity ratio: Shareholders’ equity / Total assets
Market value-based equity ratio: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payments
Notes: 1. All indices are calculated based on consolidated figures.
2. Market capitalization is calculated by the total number of shares outstanding after the deduct ion of treasury shares.
3. Cash flows are calculated using the figures for operating cash flows on the consolidated statement of cash flows.
4. Interest-bearing debt includes all debt on the consolidated balance sheet that incur interest.

(4) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years
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 stably and consistently increase the dividend while using a consolidated payout ratio of
30% as the guideline for dividends. We plan to pay a year-end dividend of 101.70 yen per share for 2020, as
stated in “Notice of Dividends from Surplus” announced on February 8, 2021. We plan to pay a year-end dividendof 78.70 yen per share for 2021 in accordance with this policy.
(5) Outlook
The outlook for the Japanese economy in 2021 and afterward has become increasingly unclear because ofconcerns about another wave of COVID-19 infections.
The World Holdings Group is aiming for more growth by accurately meeting market needs while closely
monitoring changes in the business environment. For growth, the group is leveraging its powerful businessportfolio that encompasses many business sectors in order to give the group a stable framework for business
operations. In addition, we have established a committed credit facility of 20 billion yen in total that gives us the5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

ability to act with speed and agility to target opportunities that emerge due to changes in our markets.
The Human Resources and Education Business plans to grow by providing highly distinctive services in its
markets. Activities of this business leverage the key strength of covering a broad range of industries and theability to provide seamless and comprehensive support to clients backed by the resources of every segment of theWorld Holdings Group. Furthermore, this business plans to grow in the manufacturing sector, which has long
been the primary strength of the World Holdings Group while expanding operations to cover the service sector
too. By building a broader foundation for the career advancement of the workforce and furthe r upgrading training
programs, our objective is consistent growth underpinned by a distinctive position in the human resourcesindustry.
As the COVID-19 crisis makes the real estate market increasingly difficult to predict, the Real Estate Businesswill continue to conduct business operations even more cautiously while making preparations for activities whenmarket conditions start to recover. As was explained earlier, a committed credit facility gives this business accessto funds in order to make timely purchases and take other actions. Furthermore, we will continue to makepreparations for asset management, debt collection and other activities involving real estate finance in order totarget more opportunities for growth.
In the Information and Telecommunications Business, structural reforms implemented during the past few years
have been completed and returned this business to profitability. However, the outlook will probably remain
unclear for the time being because all mobile phone carriers in Japan w ill start offering new service plans in thespring of 2021 in response to requests to lower the cost of these plans by the Ministry of Internal Affairs andTelecommunications. We will continue to build a network of competitive stores that customers will ch oose overother stores and add new products and new areas of Japan to the corporate solutions business. Our goal is to build
a new profit structure that can support consistent growth.
Agricultural parks were unable to operate during the spring of 2020, the busiest time of the year, because of
requests from local governments to suspend operations following the declaration of a state of emergency due to
COVID-19. The suspension of operations has an enormous negative impact on the performance of these parks.
The number of visitors has subsequently started to recover. Parks are using their advantage as outdoor facilities
where visitors can avoid close contact with others in order to reinforce their position as destinations for outings
that play a vital role in the areas where parks are located.
Our objective is more consistent growth while maintaining the proper scale of operations in every business andaccurately identifying and responding to changes in our markets.
Based on the above, we forecast net sales of 150,194 million yen (up 4.6% year on year), operating profit of
6,465 million yen (up 3.4% year on year), ordinary profit of 6,388 million yen (down 5.9% year on year), andprofit attributable to owners of parent of 4,573 million yen (down 22.7% year on year) in 2021.
2. Management Policy
1) Management Policy
Since its foundation, World Holdings has been dedicated to the corporate philosophy explained below in order todeepen the bonds between people throughout the world. We want to be a source of an enviro nment and a variety
of workplaces for even more people to live. All these activities are centered on our social mission of creating
platforms for people to lead fulfilling lives.

Corporate philosophy- Be a company where people have sincere and open relationships- Be a company that uses business as a place to train and nurture employees in order to be a source of skilled
people who have a strong commitment to ethics- Be a company that constantly makes contributions to society by protecting the environment and using theworld’s resources in a responsible manner- Be a company that creates jobs by utilizing the experience and knowledge of people in older age segments- Be a company where employees have jobs that give them satisfaction, enjoyment and motivation

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

2) Medium- and Long-term Business Strategy
The strategic objective of World Holdings is consistent and stable growth that uses a business portfolio with threecore elements – the Human Resources and Education Business, Real Estate Business and Information andTelecommunications Business – in order to hedge risks involving changes in the economic environment,
individual industries and the business sectors where World Holdings operates. Business activities are based on a
combination of recurring-revenue businesses that are a source of steady income and one-time-fee businesses thatgenerate sales from individual projects.
3) Challenges
Effects of COVID-19
The COVID-19 pandemic is continuing to have an unprecedented impact on countries worldwide and there is still
no clear path to the end of this crisis. In the Human Resources and Education Business, which is the core businessof the World Holdings Group, COVID-19 may have a significant negative effect on results of operations because
client companies that reduce output require fewer people. In the Real Estate Business, there may be a negative
effect on sales involving real estate development projects and other activities because of the downturn in demandfor commercial buildings and hotels due to the COVID-19 crisis. In the Information and Telecommunications
Business, a negative effect of the COVID-19 crisis is expected because of the decline in the number of people
who visit stores as people stay home for safety and make other changes in their daily activities.
The diversified business portfolio that was strategically established over many years spreads out the exposure of
the World Holdings Group to risk associated with the COVID-19 pandemic. In addition, we will continue toprovide training programs and highly advanced and innovative services that match changes in our markets. We
are determined to persevere during this crisis by leveraging these strengths to minimize the impact of the
COVID-19 pandemic.
Human Resources and Education Business
Recruiting activities
There is a nationwide labor shortage in Japan caused primarily by the decreasing number of working -age people
as the population becomes older and declines. At the World Holdings Group, there is strong demand at clientcompanies for workers, particularly younger people, which is a category where there is an inadequate supply. We
believe that recruiting people will become even more difficult in the future.
We are using our strength of providing a diverse array of working environments in a broad range of industries sothat we can recruit people across a broad spectrum of skills, backgrounds and other characteristics. We are also
continuing to make progress with our “human resources platform” concept. Another theme is building an evenstronger framework for enabling our people to enhance their skills and achieve career goals as they do the jobs
they want while receiving career advancement support and training from us. Using these activities to increase ourability to attract people and clients by making the World Holdings Group more appealing and making our brandmore powerful will help us recruit the outstanding people that we need. Furthermore, we will build on past
activities using subcontracting and consortiums in order to recruit people across the largest range of population
segments possible. We will work with client companies to provide workplaces for many categories of prospective
employees.
Effects of events outside Japan
In Human Resources and Education Business, the World Holdings Group has considerable e xpertise concerning
services for manufacturers. If U.S.-China trade friction or other events involving other countries reduces
manufacturing output in Japan or has other negative effects on the manufacturing sector, the Group’s earnings
may decline.
We are diversifying our exposure to risk by using our key strength of serving companies in a broad range ofindustries. Furthermore, our infrastructure that allows employees to upgrade their skills and advance their careers
gives them greater mobility.

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

New and amended laws for the human resources industry
Compliance with new or amended laws involving the human resources industry, related expenses and changes tobusiness operations and other actions due to these laws may affect earnings.
Recently, there have been a number of new and amended laws, such as the amended Worker Dispatching Act,laws associated with working-style reforms, and the amended Immigration Control Act. The World HoldingsGroup has been at the forefront of the human resources industry to respon d in the full spirit and intent of theselaws and take proper actions for solving problems. By using these actions to minimize expenses and build apowerful compliance framework, we intend to further reinforce our stature in our industry.
Real Estate BusinessChanging market conditions
The real estate business climate is vulnerable to changes in the economic environment and in different regions ofJapan. As a result, a change in market conditions may cause a decline in the number of properties sold andearnings due to the difficulty of purchasing properties, a rapid increase in selling prices and other events overtime.
This is why the Real Estate Business has been working on building a well-balanced business portfolio andmaximizing profitability. Activities involve conducting one-time-fee businesses that generate sales fromindividual projects, such as real estate development, and achieving the consistent growth of recurring -revenue
businesses that are a source of steady income. In addition, we are using i nformation about current market
conditions and trends obtained from our nationwide network of offices for the creation of strategies that matchthe characteristics of individual regions of Japan. Controlling the timing of purchases and sales as well as oth er
activities will allow us to maintain the proper scale of operations along with stability. Furthermore, we will also
increase our investments in new real estate business fields and new regions of Japan with excellent prospects for
growth.
Information and Telecommunications BusinessResponding to policies of Ministry of Internal Affairs and Communications, amended laws and changing
customer needs
As Japan’s mobile phone sales market reaches maturity, policies of Ministry of Internal Affairs andCommunications, amended laws and changes in the needs of customers may cause earnings to decrease becauseof a decline in the number of phones sold, reductions in fees paid to stores by carriers or other reasons.
This business is placing emphasis on establishing strong relationships with customers and mobile communication
carriers. Activities include giving people the training needed to provide customers with excellent hospitality andservices and building a network of highly competitive stores. To improve the stabil ity of this business, we are also
upgrading services for corporate customers and seeking opportunities to start new businesses. All these measures
are aimed at establishing a structure for adapting to changes in the market needs and achieving steady growth.
3. Basic Approach for the Selection of Accounting Standards
The Group uses Japanese accounting standards.
Decisions about the use of International Financial Reporting Standards will be made by taking into consideration
the use of accounting standards in Japan and other countries.

8

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

4. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)2020
(As of Dec. 31, 2020)2019(As of Dec. 31, 2019)
AssetsCurrent assets
Cash and deposits

16,513

22,817

Notes and accounts receivable - trade

12,093

12,817813

639

16,373

5,748

84

123

Real estate for sale in process

26,234

22,146

Other

4,814

3,842

(6)

(2)

76,92068,132

9,315

9,116

Accumulated depreciation(7,238)(7,189)Buildings and structures, net

2,076

1,926

Land

2,026

1,589

Merchandise and finished goods
Real estate for sale
Work in process

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Other

4,316

4,617

(2,500)(2,835)

Other, net

1,816

1,781

Total property, plant and equipment

5,919

5,297

Goodwill

436

104

Other

254

186

Total intangible assets

690

291

Investment securities

856

1,550

Deferred tax assets

1,467

2,398

943

903

Accumulated depreciation

Intangible assets

Investments and other assets

Leasehold and guarantee deposits
Other

777

808

Allowance for doubtful accounts

(224)

(224)

Total investments and other assets

3,820

5,436

Total non-current assets
Total assets

9

10,431

11,02487,352

79,157

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

(Millions of yen)2020
(As of Dec. 31, 2020)2019(As of Dec. 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable-trade

1,402

1,072

Accounts payable-real estate business

1,004

527

Short-term borrowings

27,701

17,204

Accrued expenses

5,786

6,746

Advances received

9,395

552

Income taxes payable

1,226

1,049

Accrued consumption taxes

1,495

3,110

142

124

Provision for bonuses
Other

4,634

4,248

Total current liabilities

52,79034,637

8,592

12,073

182

172

1,573

1,921

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Other

268

291

10,617

14,45863,40849,095

Share capital

787

1,244

Capital surplus

984

1,443

Retained earnings

20,98826,054

Treasury shares

(127)

(119)

Total shareholders’ equity

22,63328,6230(15)

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

01

Remeasurements of defined benefit plans

28

(20)

29

(34)

Share acquisition rights

Total accumulated other comprehensive income

122

49

Non-controlling interests

1,159

1,422

Total net assets

23,94430,06187,352

79,157

Total liabilities and net assets

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income

Net sales

2019(Jan. 1 – Dec. 31, 2019)
136,319(Millions of yen)
2020
(Jan. 1 – Dec. 31, 2020)
143,571

Cost of sales

110,009

118,553

Gross profit

26,31025,017

Selling, general and administrative expenses
Provision of allowance for doubtful accounts(5)-

Remuneration for directors (and other officers)

493

469

Salaries and allowances

7,327

7,109

Provision for bonuses

56

53

Retirement benefit expenses
Provision for retirement benefits for directors (andother officers)
Welfare expenses

127

205

17

14

1,361

1,368

Depreciation

540

460

Rent expenses

1,244

1,195

Amortization of goodwill

614

144

Other

9,802

7,745

Total selling, general and administrative expenses

21,58018,766

4,730

6,251

Interest and dividend income

13

16

Subsidy income
Income of support to investment in property andequipment
Other

25

439

36

67

272

257

Total non-operating income

347

781

Interest expenses

185

162

Loss on retirement of non-current assets

52

19

Other

34

64

Total non-operating expenses

272

246

4,805

6,786

34

7

Operating profit
Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income
Insurance claim income
Gain on sales of shares of subsidiaries and associates-

175

Consumption taxes differential

146-

Total extraordinary income

180

182

Extraordinary losses
Provision of allowance for doubtful accounts

155-

Impairment loss

44

197

Loss on disaster21

2

Total extraordinary losses

221

200

Profit before income taxes

4,764

6,768

Income taxes-current

2,091

1,713

Income taxes-deferred

(313)

(966)

Total income taxes

1,777

746

Profit

2,986

6,021

30

108

2,956

5,913

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

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

Consolidated Statement of Comprehensive Income(Millions of yen)
2020
(Jan. 1 – Dec. 31, 2020)

2019(Jan. 1 – Dec. 31, 2019)
Profit

2,986

6,021

Valuation difference on available-for-sale securities

(12)

(15)

Foreign currency translation adjustment(1)2

Remeasurements of defined benefit plans, net of tax

49

(48)

Total other comprehensive income

35

(61)

3,022

5,960

2,993

5,849

29

110

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

12

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

(3) Consolidated Statement of Changes in Equity
2019 (Jan. 1 – Dec. 31, 2019)(Millions of yen)
Shareholders’ equity
Retained
Total shareholders’
Treasury shares
Capital stock Capital surplus
earnings
equity784
965
19,412(126)
21,036

Balance at beginning of period
Changes during period
Issuance of new shares

3

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Increase by addition of newly
consolidated subsidiary
Sales of shares of consolidated
subsidiaries
Net changes in items other thanshareholders’ equity
Total changes during period

36(1,397)(1,397)

2,956

2,956
(0)

16

16

15

Balance at end of period

15

3

18

1,575

(0)

1,597

787

984

20,988(127)

22,633

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasurements accumulated acquisitiondifference on
currencyof definedotherrightsavailable-for- translation
benefit plans comprehensive
sale securities adjustment
incomeBalance at beginning of
periodChanges during period
Issuance of newsharesDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesIncrease by additionof newly
consolidated
subsidiary
Sales of shares of
consolidated
subsidiaries
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

(0)

12

1

(21)

(8)

124

Noncontrollinginterests

Total net
assets

1,195

22,347

6(1,397)
2,956
(0)

16

15

(12)

(0)

49

37

(2)

(35)

(0)

(12)

(0)

49

37

(2)

(35)

1,596

0

0

28

29

122

1,159

23,944

13

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

2020 (Jan. 1 – Dec. 31, 2020)(Millions of yen)
Shareholders’ equity
Retained
Total shareholders’
Treasury shares
Capital stock Capital surplus
earnings
equity787
984
20,988(127)
22,633

Balance at beginning of period
Changes during period
Issuance of new shares

457

457

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Increase by addition of newly
consolidated subsidiary
Sales of shares of consolidated
subsidiaries
Net changes in items other thanshareholders’ equity
Total changes during period

914
(887)

(887)

5,913

5,913

1

(0)

8

9

40

Balance at end of period

40

457

458

5,066

7

5,990

1,244

1,443

26,054(119)

28,623

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasurements accumulated acquisitiondifference on
currencyof definedotherrightsavailable-for- translation
benefit plans comprehensive
sale securities adjustment
incomeBalance at beginning of
periodChanges during period
Issuance of newsharesDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease by additionof newly
consolidated
subsidiary
Sales of shares of
consolidated
subsidiaries
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

(0)

0

0

28

29

122

Noncontrollinginterests

Total net
assets

1,159

23,944

914
(887)
5,913
(0)
9

40

(15)

1

(48)

(63)

(72)

262

126

(15)

1

(48)

(63)

(72)

262

6,116

(15)

1

(20)

(34)

49

1,422

30,061

14

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

(4) Consolidated Statement of Cash Flows(Millions of yen)
2020
(Jan. 1 – Dec. 31, 2020)

2019(Jan. 1 – Dec. 31, 2019)
Cash flows from operating activities
Profit before income taxes

4,764

6,768

834

823

Impairment loss

44

197

Amortization of goodwill

614

144

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability

149

2

(485)

15

234

317

(13)

(16)

-

(175)

185

162

Depreciation

Interest and dividend income
Loss (gain) on sales of shares of subsidiaries andassociates
Interest expenses
Loss on retirement of non-current assets

52

19

Decrease (increase) in trade receivables

(841)

(710)

271

239

(8,262)

13,508

(942)

(395)

Decrease (increase) in inventories
Decrease (increase) in real estate for sale
Increase (decrease) in trade payables
Increase (decrease) in accrued expenses

(176)

955

Increase (decrease) in advances received

8,877(8,845)

Increase (decrease) in accrued consumption taxes

128

1,862

Increase (decrease) in other current liabilities

73

247

Other, net

143

874

Subtotal

5,654

15,99717

14

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities

(183)

(169)

(3,627)(2,799)

847

727

2,708

13,770Cash flows from investing activities
Proceeds from withdrawal of time deposits

021

Purchase of property, plant and equipment(1,475)(1,164)

(127)

(35)

-

2,029

(441)

(1,912)

-

6

(4)

-

Purchase of intangible assets
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of investments in non-consolidated subsidiary
Sell of stocks non-consolidated subsidiary
Payments for acquisition of businesses
Net decrease (increase) in lease and guarantee deposits
Loan advances

(28)

24

(705)

(69)

Collection of loans receivable

193

5

Other, net

98

64(2,489)(1,030)Net cash provided by (used in) investing activities

15

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

(Millions of yen)
2020
(Jan. 1 – Dec. 31, 2020)

2019(Jan. 1 – Dec. 31, 2019)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings(3,445)(7,344)

Proceeds from long-term borrowings

8,377

12,189

Repayments of long-term borrowings(6,071)(11,412)

(16)

(2)

4

706

-

150

(0)

(0)

(1,397)

(887)

(48)

(2)

(2,597)(6,604)

Repayments of lease obligations
Proceeds from issuance of shares
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(2)

3

Net increase (decrease) in cash and cash equivalents(2,380)6,139

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries

18,824

16,513

69

157

-

7

Cash and cash equivalents at end of period

16,513

22,817

16

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Segment and Other Information
Segment Information
1. Overview of reportable segments
Segments used for financial reporting are the constituent units for which separate financial information isavailable and for which the Board of Directors performs periodic studies for the purposes of determining theallocation of resources and evaluating performance. Based on the characteristics of products and services, World
Holdings has established the following reportable segments: the factory staffing business, technology staffing
business, R&D staffing business, sales & marketing staffing business, real estate business, and information andtelecommunications business.
Overview of each business segment is as follows.
(1) Factory Staffing Business: Temporary staffing for manufacturing and logistics, subcontracting,outsourced government agency tasks, temporary staffing and employment agency services(2) Technology Staffing Business: Temporary staffing for engineers, outsourced software development,
outsourced repair and maintenance work, outsourced IT system development, repair of digitalequipment, temporary staffing for construction engineers(3) R&D Staffing Business: Temporary staffing for research personnel and clinical research outsourcing(4) Sales & Marketing Staffing Business: Temporary staffing in the service sector and tourism humanresource solutions(5) Real Estate Business: Sale of condominiums, detached houses and residential building sites, brokeragesales, condominium and building management, real estate consulting, renovations, real estate brokerage
services, rental property management, manufacture/sale/rental of prefabricated houses(6) Information and Telecommunications Business: Operation of call centers, sale of telecommunications
products, sale of office automation products
2. Calculation methods for net sales, profit or loss, assets, and other items for each reportable segment
The accounting methods for reportable segments are the same as those used for preparing the consolidated
financial statements.
Profits for reportable business segments are operating profit figures.
Inter-segment sales and transfers are based on market prices.

17

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

3. Information related to net sales, profit or loss, assets and other items for each reportable segment2019 (Jan. 1 – Dec. 31, 2019)(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni- Subtotal
Staffing
Business Business BusinessBusinesscations
Business
Business
Net sales
Sales to externalcustomers
Inter-segment
sales andtransfers

Others(Note 1)

Total

Amounts
shown onAdjustconsolidated
ments
financial(Note 2)statements(Note 3)50,001

16,902

7,108

3,761

42,082

12,344132,200

4,118

136,319-

136,319

-

486

-

112

17

11

627

131

758

(758)

-

Total

50,001

17,389

7,108

3,873

42,09912,355

132,828

4,249

137,078(758)

136,319

Segment profit

2,679

1,761

711

27

1,460

10

6,650

132

6,782

(2,052)

4,730

Segment assets

7,306

3,447

1,188

1,149

56,8303,493

73,415

2,813

76,22911,12387,352

10

26

14

0

374

62

489

178

668

166

834

1

-

-

-

563

33

598

-

598

15

614

-

-

-

-

-

44

44

-

44

-

44

22

24

14

-

896

93

1,052

299

1,351

109

1,461

Other items
Depreciation
Amortization of
goodwill
Impairment loss
Increase inproperty, plantand equipment
and intangible
assets

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. Contents of adjustments are as follows.
(1) The -2,052 million yen adjustment to segment profit includes elimination for inter-segment transactions of
265 million yen, and -2,317 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable
to any of the reportable segments.
(2) The 11,123 million yen adjustment to segment assets is corporate assets that are not allocated to any of thereportable segments. Corporate assets mainly consist of the Company’s surplus funds (cash and deposits).
(3) The 166 million yen adjustment to depreciation is related to corporate assets that are not allo cated to any of
the reportable segments.
(4) The 15 million yen adjustment to amortization of goodwill is not allocated to any of the reportable segments.
(5) The 109 million yen adjustment to increase in property, plant and equipment and intangible assets is capital
expenditures that are not allocated to any of the reportable segments.
3. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statement of income.

18

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

2020 (Jan. 1 – Dec. 31, 2020)(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni- Subtotal
Staffing
Business Business BusinessBusinesscations
Business
Business
Net sales
Sales to externalcustomers
Inter-segment
sales andtransfers

Others(Note 1)

Total

Amounts
shown onAdjustconsolidated
ments
financial(Note 2)statements(Note 3)

55,102

17,003

7,200

3,835

48,081

9,133

140,357

3,214

143,571-

143,571

0

489

-

268

47

28

834

131

965

(965)

-

Total

55,103

17,492

7,200

4,103

48,1289,161

141,191

3,345

144,537(965)

143,571

Segment profit

2,632

2,019

843

18

3,550

240

9,305

(200)

9,105

(2,854)

6,251

Segment assets

8,571

3,514

1,218

1,601

40,4483,346

58,701

4,555

63,256

15,90079,157

10

21

13

0

396

46

489

183

673

150

823

1

-

-

-

93

34

128

-

128

15

144

-

-

-

-

-

29

29

168

197

-

197

5

5

4

0

793

118

928

162

1,091

54

1,145

Other items
Depreciation
Amortization of
goodwill
Impairment loss
Increase inproperty, plantand equipment
and intangible
assets

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. Contents of adjustments are as follows.
(1) The -2,854 million yen adjustment to segment profit includes elimination for inter-segment transactions of 55
million yen, and -2,909 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable
to any of the reportable segments.
(2) The 15,900 million yen adjustment to segment assets is corporate assets that are not allocated to any of th ereportable segments. Corporate assets mainly consist of the Company’s surplus funds (cash and deposits).
(3) The 150 million yen adjustment to depreciation is related to corporate assets that are not allocated to any of
the reportable segments.
(4) The 15 million yen adjustment to amortization of goodwill is not allocated to any of the reportable segments.
(5) The 54 million yen adjustment to increase in property, plant and equipment and intangible assets is capital
expenditures that are not allocated to any of the reportable segments.
3. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statement of income.

19

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2020

Per-share Information
(Yen)
2020
(Jan. 1 – Dec. 31, 2020)

2019(Jan. 1 – Dec. 31, 2019)
Net assets per share

1,345.71

1,638.03

Net income per share

175.59341.35

Diluted net income per share

174.25399.86

Note: Basis for the calculation of net income per share and diluted net income per share is as follows:
2019(Jan. 1 – Dec. 31, 2019)2020(Jan. 1 – Dec. 31, 2020)

Net income per share
Profit attributable to owners of parent (Millions of yen)

2,956

5,913

-

-

2,956

5,913

16,837,383

17,322,494--

Increase in number of common stock (Shares)

129,522

76,329[of which share acquisition rights (Shares)][129,522][76,329]--

Amount not attributable to common shareholders(Millions of yen)
Profit attributable to owners of parent applicable tocommon stock (Millions of yen)
Average number of common stock outstanding during theperiod (Shares)
Diluted net income per share
Adjustment to profit attributable to owners of parent(Millions of yen)

Summary of potentially dilutive shares not included in thecalculation of diluted net income per share due to theiranti-dilutive effect

Subsequent Events
Not 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.

20