FY2018 Second Quarter Financial Results

August 20, 2018 (Mon)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Contents

I. Summary of FY2018 Second Quarter Financial Results
Summary of Financial Results
Overview of Business Results by Segment
Details of Each Segment
Financial Condition B/SCash Flows

… P3
… P5
… P6
… P13
… P14

II. FY2018 Business Forecasts
Business Forecast
FY2018 Quarterly Business Forecast
Shareholder Returns

… P16
… P18
… P20

III. Future Industry Environment and Our Approaches
Future Industry Environment and Our Approaches by Segment
Topics

… P22
… P28

Appendix

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

1

I. Summary of FY2018 Second Quarter Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Summary of Financial Results(1) Results Compared to the Initial Estimate
 Both sales and profit were healthy, compared with the initial estimates. Especially, profit exceeded the disclosure
standards, and its estimate was revised upwardly.
 The performance of the business of the Human Resources and Education Business, which is our mainstay, was healthy
and contributed significantly to the results of the entire group, as we steadily implemented the mid-term managerial plan,
which was designed for establishing a new position in the industry.
 As for the Real Estate Business, since it became possible to conduct precise marketing for each region and each product,
we delivered real estate related to development swiftly, and profit exceeded the estimate considerably.
Net sales(Million yen)

70,000Estimate

3,500
3,000
2,500
2,000
1,500
1,000
500
0

Actual

65,00064,37960,00061,06455,00056,85350,00045,0002017/2Q

Operating income(Million yen)

Estimate

Actual

2,981
2,005
1,154

2018/2Q

2017/2Q

2018/2Q(Unit: Million yen)

2017/2Q
actual2018/2Q
estimate

2018/2Q
actualCompared to the initial
estimate
Achievement
Surplus/deficitrate

s a l e s

56,85361,06464,379+3,315105.4%

Operating income

2,981

1,154

2,005

+851

173.8%N e t

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved3Summary of Financial Results(2) Results Compared to the Results in the Previous Term

(Unit: Million yen)

2017/2Q
actual2018/2Q
actualYOY
ChangeFull-year
budget*Ratio to fullyear
budget145,137

44.4%

Pct. change

Net sales

56,85364,379+7,526 +13.2%

Operating income

2,981

2,005

-976

-32.8%

7,288

27.5%

Ordinary income

2,950

2,001

-949

-32.2%

7,083

28.3%

Net income attributable toowners of parent

2,061

1,079

-981

-47.6%

4,635

23.3%

*Announced on February 13, 2018

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

4Overview of Business Results by Segment

2017/2Q
actualUnit: Million yen(Profitmargin)2018/2Q
actual(Profitmargin)YOY
ChangeFactory BusinessTechnology BusinessNet sales

18,614
1,401
5,996
642
3,084
271
3,033
138
30,7292,453
20,594
1,290
4,217
150
1,312
70
56,853Elimination or
corporate-982

Operating income

2,981

Net sales

13,979
1,290
6,615
0

Net sales
Segment income
Net sales
Segment income

Human Resources
and Education
Business

R&D BusinessNet sales
Segment income

Sales & Marketing
Business
Total (reference)

Net sales
Segment income
Net sales
Segment income

Real EstateBusiness

Real EstateBusiness

Inf ormation andTelecommunications
Business

Information andTelecommunications
Business

Other

Net sales
Segment income
Net sales
Segment income
Net sales

OthersSegment income

Total(7.5%)(10.7%)(8.8%)(4.6%)(8.0%)(6.3%)(3.6%)(5.3%)

23,332
1,392
7,029
604
3,336
247
1,847
-60
35,544
2,183
20,416
784
6,741
73
1,675
-130
64,379(6.0%)(8.6%)(7.4%)( －)(6.1%)(3.8%)(1.1%)( －)-905(5.2%)

2,005(3.1%)

Pct. change

4,718
-9
1,032
-38
252
-23
-1,186
-198
4,814
-270
-177
-506
2,524
-76
362
-200
7,526

25.3
-0.7
17.2
-6.0
8.2
-8.8
-39.1
15.7
-11.0
-0.9
-39.2
59.9
-51.1
27.6
13.2

77

-

-976

-32.8

-2,118
-740
1,940
234

-15.2
-57.4
29.3
-

<Reference>
Real EstateBusiness

Development/Single-family
housing

Segment income

Renovation/PrefabricatedhousesSegment income

Net sales(9.2%)(0.0%)

11,861
550
8,555
234

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved(4.6%)(2.7%)

5

Human Resources and Education BusinessOverall Segment<Composition by business segment>We achieved a high rate of sales growth by strengthening our structure/organization ahead of problems in 2018 and by continuing tosteadily implement strategies based on our mid-term managerial plan. This segment greatly drove the performance of our entire group.
We enjoyed continued favorable performance in many fields by improving sales (unit price increase), management (retention rate
improvement) and employment (net increase in personnel) functions. Particularly, performance was healthy in the distribution field of the
Factory Business as well as the Technology Business.
On the other hand, profit declined from the previous term, due to the upfront investment for the strategies in the mid-term managerial plan.

◆ Sales composition◆ Segment income(Million yen)

40,000Up 15.7%

35,00025,00020,000Up 3.2%7.0%

30,72930,00034,41235,5445.2%
9.4%-39.1％
+8.2％

19.8%

+17.9％

10.2%

9.9%
10.8%

YoY
(Based on
monetary
amount)Investment for growth of the Factory and Technology businesses,
and for structural reform in the Sales & Marketing Business(Million yen)

3,000

Down 11.0%

2,453
2,500

2,180

5.6%
11.0%

0.2%
12.3%

2,000

18.7%

26.2%

1,500

19.5%

Up
0.1%

2,183
11.3%

25.5%

27.7%

62.0%

63.8%

1,000
15,00010,000

65.6%

64.1%

+25.3％

57.1%

500

60.6%

0

5,000
0

-500
2018/2Q

2017/2Q
実績
actualFactory

予算
estimate
Technology

R&D

実績
actualSales & Marketing-2.7%

2017/2Q

2018/2Q

actualFactory

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

estimate
Technology

R&D

actualSales & Marketing6

Human Resources and Education Business

Factory Business<Sales composition by business segment and the number of staff members>The mobilized personnel recruited through bilateral matching were assigned to offices that have a good environment fortraining workers, and practical training was carried out, to launch large-scale projects stably and swiftly. In addition,
retention rate improved.
In the distribution field, the operation of a new foothold began in April, contributing to the increase of workers enrolled.
We actively invested in the systematization of recruitment processes, the development of an environment for training
workers, etc.

◆ Sales composition by business segment◆ Segment income(Million yen)

25,000Up 25.3%

22,07323,332Up 5.7%20,00018,61417.0%

15,000

YoY(Based on
monetary
amount)

4.1%
7.6%

16.5%

+26.2％

2.9%
10.7%

-8.5％
+84.5％

12.9%+ 0.9％

3.2%-15.0 ％

16.6%

10,00034.1%+50.1％

29.6%

1,800

Down 0.7%

1,600

1,401
1,400

Up 3.0%1,351(Persons) *Parentheses signify the
number of new employees.
16,00014,000

1,392

12,761[135]

15,622
[239]

4,584

12,000
3,528

1,200

1,477

10,000

1,000
8,000

1,348

6,000

600

9,561

4,000

400

5,000
19.7%

20.1%

+27.6％

0Electric & Electronics
Semiconductors
OthersWe have invested inadvance in humanresource training and a
new logistics base.

(Million yen)

800

5.0%

2017/2Q
actual◆ Variation in the number of staff (3-month average)

2,000

200
0

2018/2Q
estimate
Logistics
Machinery0
2017/2Q
actualactual7,885

2018/2Q
estimate
actualAutomobiles
Environment & Energy*We have not disclosed the sales estimate by segment.

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

2017/2Q

2018/2Q

Other companies/acceptance
Entrusted by overseas and government office
Number of staff*The number of staff is a three-month average. External staff members
accepted from other companies are included.
*Number of staff included only staff members who are engaged in on-site
operation work.

7

Human Resources and Education BusinessTechnology Business<Sales composition by business segment and the number of staff members>
 We have continued to invest in the expansion of our training curriculum for expert engineers (e.g. JAVA
programming, CATIA and Tfas) in high need. This has improved the technical capabilities of our existing
employees and increased the number of people assigned together with training for those who areinexperienced.
 In addition, we established Production Engineering Center specializing in production technologies in June,
contributing to the increase of orders received regarding production technologies.
◆ Sales composition by business segment◆ Segment income(Million yen)

8,000

Up 9.3%UP 17.2%
7,000
6,000
5,000
4,000

3,000

7,029

YoY
(Based on
monetary
amount)

5,996
31.3%

+11.9％

32.8%
6.0%
5.0%

6.5%
5.5%

+26.9％+28.0％

17.1%+25.9％

800

642

2,037
[107]
604

600

556

Up 8.6%

500

40.3%

2017/2Q
actual1,000

Semiconductors
Machinery
Others500

2017/2Q
actualactual741

788

2017/2Q

2018/2Q00estimate

1,234
987

100
2018/2Q

306

309

400

+15.6％

0

2,328
[111]

2,000

1,500

200
39.7%

(Persons) *Parentheses signify the
number of new employees.
2,500

Down 6.0%

300

15.9%

2,000
1,000

We have invested instrategic human resource
training to acquire large-scale
projects.

(Million yen)

700

6,433

◆ Variation in the number of staff (3-month average)

2018/2Q
estimate
actualInformation and telecommunications service
Automobiles*We have not disclosed the sales estimate by segment.

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

Construction, repair and other technology
Design development
Production technology*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged in on-site
operation work.

8

Human Resources and Education Business

R&D Business<Sales composition by business segment and the number of staff members>

We promoted our business strategically, by assigning researchers with high value to the fields with high added value.
We strived to expand the collaborative research system with multiple colleges, while preparing for a system forundertaking tasks.
We strived to enrich the environment for training management staff in addition to researcher employees, and invested
mainly in the development of people with strong corporate loyalty. In addition, DOT World Co., Ltd. invested in structuralreforms, including the restructuring of organizations.

◆ Sales composition by business segment(Million yen)

4,000

Up 8.2%

We have carefully selected
employment due to entry into
high-level fields.

3,496

3,500

◆ Segment income

Down 4.6%

3,084
3,000

YoY
(Based on
monetary
amount)300

Down 8.8%
271

3,336
20.7%

41.6%

247

(Persons) *Parentheses signify the
number of new employees.
1,200

1,000

995
[83]
90

1,052
[66]
100

+1.5％

2,500

44.6％

268

DOT World Co., Ltd.
invested in structuralreforms for growth.

Down 7.8%

250

22.0％

2,000

(Million yen)

◆ Variation in the number of staff (3-month average)

+0.9％

200

800

150

600

100

400

50

200

1,500

905

952

2017/2Q

2018/2Q

1,000
500

37.7%

33.4％

+22.4％

0
2017/2Q
actual00
2018/2Q
estimate

Pharmaceutical/biotechnology

2017/2Q
actualactualChemical

2018/2Q
estimate
actualClinical*We have not disclosed the sales estimate by segment.

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

R&D staff

DOT staff*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged in on-site
operation work.

9Real Estate Business

Real Estate Business<Sales composition by business segment and major activities>
 As we completed a nationwide system for offering competitive products in each region, and developed
information networks, it became possible to conduct marketing more precisely (by predicting places,
products, timings, etc. to sell).
 As a result, the profit related to development grew due to the swift delivery of real estate, and the numberof renovated houses delivered increased considerably (1.5 times from the previous term).
◆ Sales composition by business segment◆ Segment income(Million yen)

25,000

Down 0.9%

20,59420,0004.1%

Up 6.4%

19,18828.0％

15,000

YoY(Based on
monetary
amount)1,400

Down 39.2%

1,290

1,200

20,416
3.4%-19.9％

38.5%+36.6％

With a nationwide
system, it became
possible to grasp thedevelopment-related
situation timely.

1,000
800

784

600

15.5%

10,0005,000(Million yen)

14.8%

-5.3％

43.3%

-18.1％

400
200

52.4%

0
0
2017/2Q
actual2018/2Q
estimate

actualThe ratios of items
other than thedevelopment-related
increased.

-55
-200
2017/2Q
actual2018/2Q
estimate

actualDevelopment-related
Single-family housing
Renovation-related
Prefabricated houses-related*We have not disclosed the sales and segment income estimate by business segment.

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

10Information and Telecommunications BusinessInformation and Telecommunications Business<Sales and major activities>
 We invested mainly in the shop business, which would become our mainstay, for having
the merits of remaining players. We concentrated on the development of a network of
excellent shops by investing for the environment improvement, including the relocation andenlargement of 16 shops opened last year and existing shops, investing in humanresources for improving the ability to attend to customers, and so on.
◆ Sales for each target◆ Segment income(Million yen)

8,000
7,000

Up 59.9%

4,000

8.6%

5,791

6,000
5,000

6,741

(Million yen)

160

150
We are continuing toinvest to expand andimprove our excellent
shop network.

140+23.5％Up 16.4%

120

101

100

4,217

Down 51.1%
Down 27.7%

73

80

12.4%

3,000
2,000

YoY
(Based on
monetary
amount)91.4%+65.1％

60
40

87.6%

1,000

20

0

0
2017/2Q

2018/2Q

actualestimate
Individual

2017/2Q
actualactual2018/2Q
estimate

actualCorporation*We have not disclosed the sales and segment income estimate by destination.

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

11OtherOthers<Sales and major activities>
 Advan Inc. saw a favorable development of web productions and greatly contributed to human resource training
in our group.
 Farm Co., Ltd., which operates agricultural park business, earned sales exceeding the initial estimate at somefacilities, as the investment in redevelopment of facilities paid off, despite the effects of bad weathers. At the endof June, we opened “Sylvanian Park” in Comorebi Morino Ibaraido in Ibaraki in cooperation with Epoch Co., Ltd.
◆ Sales◆ Segment income(Million yen)

Up 27.6%

2,000

Up 0.1%

1,674
1,500

1,675

YoY
(Based on
monetary
amount)+57.7％(Million yen)

100

70
50

1,312
0

1,000
+24.7％

-50

-54

500
-100
+6.9％

0
2017/2Q
actualAdvan Inc.

2018/2Q
estimate
Farm Co., Ltd.

-130

-150
2017/2Q

actualactual2018/2Q
estimate

actualOther*We newly consolidated Farm Co., Ltd. from the second quarter of FY2017.
*We have not disclosed the breakdown of the sales and segment income estimate.

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

12Financial Condition B/S Our total assets have reduced due to repayment of borrowings and payment of dividends and taxes.
Total assets(Million yen)

Current assets

100,000
80,00080,03979,52070,315

70,13460,00040,000

0

9,724

9,386

End of FY2017

End of FY2018 2Q

Fixed assets(Million yen)

9,386 (-337)

Goodwill-300 million yen

Investment securities-218 million yen

Total liabilities/net assets
Liabilities

80,03979,52049,17549,57580,00040,00020,000-840 million yen+1,370 million yen-1,307 million yen

Current assets

100,000

60,000Cash and deposits
Real estate for sale
Real estate for sale in process
Fixed assets

20,00070,134 (-181)

Short-term debt
Income taxes payable
Long-term debt
Net assets

11,724

11,052

19,14018,891

End of FY2017

End of FY2018 2Q

60,628 (-271)+839 million yen-518 million yen-644 million yen

18,891 (-248)

Retained earnings-314 million yen

0
Net asset

Fixed liabilities

Current liabilities

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

13Cash Flows Operating CF was plus 1,129 million yen, investment CF was minus 664 million yen,and financial CF was minus 1,575 million yen.
(Million yen)

22,000Operating CF

20,000＋1,129-664

18,00016,00014,000-1,575
Term-endbalance of
cash andcash
equivalents

Term-startbalance of
cash andcash
equivalents

Current net profit before taxes and other adjustments
1,975 million yen
Increase in inventories-403 million yen
Increase in accrued expenses
488 million yen
Income taxes paid
-1,318 million yen
Income taxes refund
1,301 million yen
Investment CF

12,00010,00018,227

17,3878,000

Expenditure through the acquisition of property, plantand equipment-504 million yen
Expenditure through the acquisition of shares ofnonconsolidated subsidiaries-70 million yen
Expenditure through the acquisition of intangible
assets-63 million yen

6,000
Financial CF

4,000

Decrease of short-term debt
Proceeds from long-term borrowing-840 million yen

2,000

2,139 million yen
Expenditure through the repayment of long-term debt
-1,340 million yen
Payment of dividends-1,390 million yen

0
End of Dec. 2017 Operating
営業

投資
Investment-706 million yen

財務
Financial

End of FY2018 2Q

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

14II. FY2018 Business Forecasts

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15

Business Forecast (Overall) We will implement the new mid-term managerial plan steadily, with the aim of growing
sales for the 9th consecutive terms and net income for the 8th consecutive terms.

Unit: Million yen, %Results for theterm ended Dec.
2017

Forecast for theterm ending
Dec. 2018

Net

sales

127,147

145,137

17,99014.1

Operatingincome

7,064

7,288

224

3.2

Ordinary

income

7,007

7,083

75

1.1

4,612

4,635

23

0.5

275.35275.73
82.8

0.38

0.1

0.1

0.1

Net

incomeownersattributableoftoparentEPS (yen)
Dividend per share (yen)82.7

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

YoY
Pct.
changeChange16

Business Forecast (Segments)
 The Human Resources and Education Business, which is our mainstay, is expected
to keep leading our business.
Results for theterm ended Dec.
2017

Unit: Million yen, %Net sales

Factory Business
Segment income
Net sales

Human
ResourcesandEducation
Business

Technology Business
Segment income
Net sales

R&D Business
Segment income

Sales & Marketing
Business

Net sales
Segment income
Net sales

Total (reference)
Segment income

Real EstateBusiness

Real EstateBusiness

Information andTelecommunications
Business

Information andTelecommunications
Business

Net sales
Segment income
Net sales
Segment income
Net sales

Other

OthersSegment income
Net sales

Total

Elimination or
corporate
Operating income

41,654
2,587
12,155
1,263
6,489
634
5,741
219
66,041
4,704
49,080
4,635
9,167
25
2,856
-272
127,147-2,029
7,064(Profitmargin)(6.2%)(10.4%)(9.8%)(3.8%)(7.1%)(9.4%)(0.3%)(-9.5%)(5.6%)

Forecast for theterm ending
Dec. 2018

46,435
3,264
13,338
1,291
7,420
693
5,380
80
72,573
5,329
57,624
3,974
11,548
230
3,391
-125
145,137-2,1197,288

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved(Profitmargin)(7.0%)(9.7%)(9.3%)(1.5%)(7.3%)(6.9%)(2.0%)(-3.7%)(5.0%)

YOY
Change

4,781
677
1,183
28
931
59
-361
-139
6,532
625
8,544
-661
2,381
205
535
147
17,990(―)
224

Pct. change

11.5
26.2
9.7
2.2
14.3
9.3
-6.3
-63.5
9.9
13.3
17.4
-14.3
26.0
820.0
18.7
-54.0
14.1
(―)
3.2

17

Quarterly Business Forecast (Overall) From this term, we will disclose quarterly earnings forecasts for the purposes ofimproving the transparency of business administration and contributing to theinvestment judgment of shareholders and investors.
Net sales

Operating income

145,137

7,064

7,288

127,147

46,701
43,42926,86527,77929,074

3,665
37,370418
30,54730,5172017/12actual3,824

34,2681,136

30,111

1,845

2018/12estimate
1Q

2,309
701
452

2017/122Q actual2Q

actual
3Q

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

1,434
570
2018/12estimate

2Q actual

4Q

18

Quarterly Business Forecast (Segments)
Human Resources and Education Business

Real Estate BusinessInformation and Telecommunications Business

57,624

11,548

Other

72,57366,041
19,55849,08018,518Net sales

16,794
16,125

14,604

9,167
23,43818,602
17,806

6,755

18,431

8,443
16,606

2,549

21,731

17,112

12,151

10,638

11,221
9,194

630
3,391

914

3,349

1,132

2,079
2,782

2,138

2017/122018/122017/122018/122017/122018/121802017/12actualestimate 2Q actual

actualestimate 2Q actual

actualestimate 2Q actual

actual

5,329

4,635

1,068

Segment income 1,183
1,285
1,168
2017/12actual

2,738

1,466
1,234

25

106

83

22
93

67
1,191

946

214

2018/12-92
2017/12estimate 2Q actual

actual

1Q

490

454

2018/12estimate 2Q actual

7

18
57
13
-112

35
37

243
-299
2018/12566
217

estimate 2Q actual

2Q

164
66
-218

-64
1,290

1,076

991

1,220

-125

1,682
3,437

1,183

230
3,974

4,704

723
993

3,008
8,549

2,856

2,775

2,401

14,998

3,391

2,981

-230

-61

-196

-89

-272
2017/122018/122017/122018/12actualestimate 2Q actual

actualestimate 2Q actual

3Q

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

4Q

19

Shareholder Returns
We aim to increase dividends stably and continuously, andachieve a payout ratio of 30%.
(Yen)

Dividend per share

90.0

82.7

Initial estimate
Results

80.0

82.8

75.3
68.5

70.0

63.2

60.0
50.0

45.7

40.0
30.0

23.7

20.0
10.0

8.5

8.5 10.0

2012/122013/12

25.3

14.3

4.5

0.0
2014/122015/122016/122017/122018/12(forecast)*The forecast and dividend estimated are based on the information that the Company has and a certain assumption that is
considered reasonable. There is a possibility that the actual results may largely differ based on various factors.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved20III. Future Industry Environment and Our Approaches

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

21

Future Industry Environment of the Human Resources and Education Business

External environment

Industry trend

Our strategies

Changes in working
environments

Differentiation ofeach company

Capability of
attracting workers

Shortage ofmanpower

Creation of new workforce
Women

Changes inworkingenvironments

Seniors

Existing
employers’

Foreigners

Enhancement of
personnel
development

One-stop service
Broad domain in which
workers can choose their
way of working

shift

Improvement ofcompliance
Capability ofgathering workers

Utilization of the HR industry(Development of staffing
companies to deal with them)

Exertion of mobility

Personnel
development

Amendment to law

Environment of
relearning

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

22

Future Activities for the Human Resources and Education Business (1)Provision of an environment where everyone can work and relearn

HR platform

Personnel development process(Establishment of a human resources platform)
Careerdevelopment

Advanced technical skills
High income

実績の浸透

Stable employment
environment

A wide array ofchoicesCapability of attracting workers

R&D
TechnoTo support workers in“relearning” andprovide them with anenvironment where they
can work for a long
period of time

Improvement of skills

SI
FC

Enriched personnel development program

Staffing

Creation of
a newpopulation

Capability of gathering workers

Brand development

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

23

Future Activities for the Human Resources and Education Business (2)To improve the value of individuals and jobs
[For results in 2018]

Net sales● To gain 2,000 new workers in the second half(No. of workers rose 1,900 in the first half)● Increase of return from upfront investment

72,57335,544

estimate

Segment income

2Q actual[For the future]

5,329

2,183

estimateTo assign personnel to more advanced fields
through training, aiming for further growth of
our company
To start operating new distribution centerssteadilyTo steadily dispatch personnel who have been
recruited earlier● Further pursuit of the “capability of attracting
workers ” and the “capability of gathering workers”

2Q actual

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

24Future Industry Environment of the Real Estate Business

External environment

Industry trend

Our strategies

Negative opinions are dominant
Further expansion of ourbusinessdomain and target region

Concern over the peaking out of demandContinuous rise in land prices,
construction costs, etc.

More precise marketing
based on integrated information

A lot of positive factors
Population of central Tokyo
To increase the number of houses
Demand for accommodation forforeign sightseers

Deteriorated
buildings

Rebuilding/renovationdelivered in a short term,
while it is difficult to predict the future

To predict a turning point,and conduct procurement anddevelopment with timely
judgment

trend

Necessity of facilities forseniors

Pursuit of synergy
in the entire group

Uncertainties
Problem of greenery area for production in 2022

Easing of regulations (foreign interns)

Flexible response to thechangesin the external environment

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25

Future Activities for the Real Estate BusinessTo determine timings and pursue the synergy in the entire group[For results in 2018]
Net sales● Steady delivery of real estate
57,624Development-related
20,416

estimate

Net sales ⇒ Already signed about
60% of contracts in the annual plan

2Q actual[For the future]●Further precise marketing
Segment income⇒ To determine the timings ofprocurement and sale

3,974

784
estimate

2Q actual●Further expansion ofbusiness domain and region⇒ Stable growth hedging risks
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved26

Industry Environment of the Information andTelecommunications Business, and for Results in 2018
External environment

Industry trend

Our strategy

To pursue the meritsof remaining players amid
the replacement and reformof businesses

To concentrate on the
expansion of the area forreceiving the merits ofremaining players<Dominant strategy>

Mobile terminal market⇒Currently saturated

Existence of expected items
Emergence of demand for replacement(5G services)
Release of new devices (IoT technology)[For results in 2018]
Net sales

57,624
20,416
estimate

2Q actual● Establishment of a networkof excellent shops
Efficient accumulation of stocks

Segment income[For the future]

3,974
784
estimate

2Q actual● Services targeted at corporations
Enrichment of new products, area
expansion, etc.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved27Topics

In June 2018, we opened “Sylvanian Park” in Comorebi Morino Ibaraido, which is operated by FARM
Co., Ltd., in Inashiki City, Ibaraki Prefecture in cooperation with Epoch Co., Ltd.

Objective

To upgrade the facilities for the summer season

An outdoor theme park reproducing the SylvanianVillage in an area of about 3,320m2. Inside the park,
the “Sparkling Lake” and the “Babbling River,” which
symbolize the Sylvanian Village, are depicted.
Visitors can wear the outfits of some popularcharacters.
There are various programs, as experience-based
events vary according to month and season.
Special products are available.
Doll available in only Sylvanian Park
(released on July 14)
Sparkling Lake and Babbling RiverBig house of the red roof

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

Bustling tree house
Family cottage

28Appendix

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

Human Resources and Education Business～Ideal State to Achieve by Fiscal 2021
Our original position & high earning capability
Skill

Dispatch
Dispatch ofskilledresearchersand engineers

High

Undertaking
Makers’ tasks

Dispatch of teams<HR platform>

Co-sourcing

Undertaking of large-scale projects
Our team undertakes the coretasks regarding design,development, manufacturing,etc. that have been conductedby the employees of makers.

Current fields ofcompetition

Team

Individual[Volume zone]
Area for pursuingquantity
We don’t pursue scale.

Temporary tasks
Skill

Low

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30

Human Resources and Education Business～Focus on “the Capability of Attracting Workers”
Measure to take ⇒ To focus on not only “the capability of gathering workers,” butalso “the capability of attracting workers””
Capability of attracting workers

Capability of gathering workers
We have already achieved a certain level.
<Other companies are still at the stage ofmaking efforts>

Evolution(Attractive features of the company)

Current
state

Under development

From
now onConcentration

Further efforts to utilize SNSProduction of a roadmap for envisaging future

Establishment of a website for each business

Development of HR systems



Improvement in recruitment efficiency through

Improvement of treatment and the working

the collection and analysis of big data, etc.
Investment

environmentPersonal preferences are grasped, and data

environment

are accumulated and utilized for regional
marketing (recruitment), etc.

Increase of transactions with favorable
conditions, through the cooperation
with the sales section

Improvement in the personnel development

High return

Brand development

Increase of good-quality personnel,
improvement of retention rate andstable operation

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

31Real Estate Business～Ideal State to Achieve by Fiscal 2021
To strategically develop an operational system for enabling the flexible procurement and sale according to region andmarket situation, and actualize robust business (profit structure) that is not swayed by the economic environmentWe have recently developed systems for maximizing profit.
From now on, we will disclose quarterly forecasts from the viewpoint of transparency.

Ideal profit structure

One-time revenue
business

ProfitDevelopment/Single-family housing
Entry to newfields and regions

Effects of market fluctuations

Renovation/Prefabricatedhouses/lease management/sales
brokerage

Recurring-revenue
business

FutureCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

32Real Estate Business～Timely Execution of Strategies by Integrating Information
Efforts for realizing comprehensive realty business in major urban
areas, and design and implementation of new local strategies while
putting together information taken nationwide
Nationwide network
Key sites
Existing sites

Hot info(market trend, etc.)

Entry to new fields (blanks)

Nationwide
information
sharing

Existing business
Developer

Single-family
housingRenovationSales
brokerage

Lease
Prefabricatedmanagement
houses

SapporoSendaiTokyo

Design of strategies
for each region

Osaka

Fukuoka

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

33

For More Information
Norio Nishihara

Public Relations and Investor Relations Department
Corporate Planning Division
WORLD HOLDINGS CO., LTD.

TEL: 03-3433-6005
E-MAIL: irinfo＠world-hd.co.jp
URL: http://www.world-hd.co.jp/
No information in this presentation is provided for the purpose of solicitingpurchases or sales of our stock. Furthermore, opinions, forecasts and otherinformation not based on historical facts represent our judgments at the time
this presentation was prepared. We do not guarantee the accuracy of thisinformation and may revise this information at any time without prior notice. We

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and other providers of this information assume no responsibility whatsoever for
any losses incurred in association with the information in this presentation.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved34