Consolidated Financial Results for 2018
[Japanese GAAP]
February 12, 2019

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange, First Section
Stock code:
2429
URL: http://www.world-hd.co.jp
Representative: Eikichi Iida, Chairman and President
Contact:
Shigeru Nakano, Executive Director, Head of Corporate Planning Division
Tel: +81-92-474-0555
Scheduled date of Annual General Meeting of Shareholders:March 20, 2019
Scheduled date of payment of dividend:
March 22, 2019
Scheduled date of filing of Annual Securities Report:
March 22, 2019
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for 2018 (January 1 to December 31, 2018)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Million yen%

Million yen

2018
142,89412.4
2017
127,147
34.8
Note: Comprehensive income (millions of yen)%

Million yen

%

7,370
4.3
7,357
7,064
(4.6)
7,007
2018: 4,592 (down 6.2%)

Net income per
share

Diluted net income
per share

Yen

Yen

Profit attributable toowners of parent

Ordinary profit%

Ordinary profit on Operating profit tototal assets
net sales

Return on equity

2018
276.38272.02
2017
275.35270.68Reference: Equity in earnings of affiliates (millions of yen)
2018: -

Million yen

5.0
4,650
0.8
(4.1)
4,612
10.0
2017: 4,893 (up 15.4%)

%

%

%

23.9
28.8

9.2
9.1
2017: -

5.2
5.6(2) Consolidated financial position
Total assets

Net assets

Million yen

Net assets per share

Equity ratio

Million yen%

As of Dec. 31, 2018
79,964
22,347
As of Dec. 31, 201780,03919,140
Reference: Shareholders’ equity (millions of yen)
As of Dec. 31, 2018: 21,028

Yen

26.3
1,249.02
22.3
1,059.91
As of Dec. 31, 2017: 17,818(3) Consolidated cash flows
Cash flows fromoperating activities
2018
2017

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

9,277
8,159

(1,405)(2,668)(7,538)(3,058)18,824
18,227

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

1Q-end201720182019 (forecast)

Total

Total
Payout ratio Dividend on equity
dividends (consolidated) (consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00
0.00
0.00

-

82.70
83.00
65.50

82.70
83.00
65.50

1,390
1,397

30.0
30.0
30.0

8.7
7.2

3. Consolidated Forecast for 2019 (January 1 to December 31, 2019)
Net salesFirst half
Full year

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

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

Yen

66,514
155,452

3.3
8.8

1,057
6,049

(47.3)(17.9)

992
5,910(50.4)(19.7)

605
3,672(43.9)(21.0)

35.96
218.11

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: -Excluded: -(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, 2018:

16,956,600 shares

As of Dec. 31, 2017:16,932,500 shares

As of Dec. 31, 2017:

120,846 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2018:

120,929 shares

3) Average number of shares during the period
2018:

16,825,751 shares

2017:

16,750,222 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for 2018 (January 1 to December 31, 2018)(1) Non-consolidated results of operations
Net sales
2018
2017

Million yen%

Million yen%

Million yen%

Million yen

%

1,647
1,347

22.2
30.5

165
54

200.7
196.7

3,988
4,676

(14.7)
46.0

3,881
4,602

(15.7)
50.5

Net income per share
2018
2017

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

Diluted net income per
share

Yen

Yen

230.70274.77227.07270.12(2) Non-consolidated financial position
Total assets
Million yen

As of Dec. 31, 2018
39,792As of Dec. 31, 2017
43,519Reference: Shareholders’ equity (millions of yen)

Net assets

Equity ratio

Million yen

13,630
11,136
As of Dec. 31, 2018: 13,505

Net assets per share
%

Yen

33.9
802.2225.3
654.47
As of Dec. 31, 2017: 11,002* 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. 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.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

5(3) Cash Flows

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

6(5) Outlook

6

2. Management Policy

8

3. Basic Approach for the Selection of Accounting Standards

9

4. Consolidated Financial Statements and Notes

10(1) Consolidated Balance Sheet

10(2) Consolidated Statements of Income and Comprehensive Income

12

Consolidated Statement of Income

12

Consolidated Statement of Comprehensive Income13(3) Consolidated Statement of Changes in Equity

14(4) Consolidated Statement of Cash Flows

16(5) Notes to Consolidated Financial Statements

18

Going Concern Assumption

18

Segment and Other Information

18

Per-share Information

21

Subsequent Events21

5. Others

22

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

1. Overview of Results of Operations(1) Results of Operations
The Japanese economy in 2018 was supported by strong corporate earnings and firm capital expenditures. However,
the economic outlook became increasingly uncertain during the year because of concerns about U.S. -China trade
friction, the slowing pace of economic growth in China and other reasons. Japan’s labor market remained tight withthe job openings-to-applicants ratio consistently at a record high. Worries about the chronic labor shortage arehaving a negative impact on economic sentiment.
The World Holdings Group achieved higher sales and earnings in 2018 supported by the strong performance of thecore Human Resources and Education Business. The Real Estate Business also made a contribution to the growth insales and earnings.
In the Human Resources and Education Business, there were many activities for responding to the impact of
U.S.-China trade friction on manufacturing operations in Japan as well as to external factors including the chroniclabor shortage and amendments to laws involving this business. These activities encompassed sales, administrative,
recruiting and other operations of this business. In addition, we took steps from a medium to long -term perspectivethat are aimed at making our brand more powerful (ability to attract people and clients). All these initiatives helped
clearly differentiate us from competitors from the standpoint of our clients, employees and applicants. Due to all ofthese measures, we were able to make steady progress with recruiting activities, primarily for hiring people withoutstanding skills. We also maintained our ability to meet even high-volume human resource requirements. As aresult, this business set new records for the number of people on assignments and sales, making a big contribution to
the growth of the entire World Holdings Group.
In the Real Estate Business, persistently high prices are making the outlook for the real estate market increasingly
unclear. To succeed in this challenging environment, this business used its information resources and network ofbusiness relationships, which are backed by operations spanning a broad range of market sectors and regions ofJapan. By purchasing and selling properties in a proper manner that reflected market conditions, this business posted
record-high sales and made a contribution to growth of the entire World Holdings Group.
The Information and Telecommunications Business took numerous actions in response to the increasing number of
options that customers have as the services of telecommunications companies become more diverse due to policiesof the Ministry of Internal Affairs and Communications aimed at increasing competition. There were measures tofurther upgrade the services of stores in this business and some stores were combined with others or closed in orderto improve efficiency.
Net sales increased 12.4% year on year to 142,894 million yen. Operating profit increased 4.3% to 7,370 million yen,ordinary profit increased 5.0% to 7,357 million yen, and profit attributable to owners of parent increased 0.8% to4,650 million yen.
Results by business segment are described below.
Factory Staffing Business
Performance in this segment was strong, making a big contribution to the growth of consolidated results ofoperations. Logistics, machinery, and electrical and electronic products were the major areas of growth.
In the logistics sector, we conducted training programs designed for specific job categories and levels with emphasison management personnel. This training made it possible to supervise people at a larger number of locations as wellas to control output to maintain stability. Furthermore, this business was able to supply large numbers of temporary
workers in December, which is the busiest time of the year for logistics companies. As a result, logistics sales a nd
earnings were significantly higher than in 2017. Furthermore, we made up-front investments to add more service
locations for logistics in order to establish a base for more growth in 2019 and afterward.
In the machinery and electrical and electronic products sectors, there was a negative impact from reductions in
output and other events associated with changing market conditions. However, this impact was largely as expected.
We continued to expand subcontracting locations. There were also activities to e stablish ties with new customers ingrowing market sectors such as 5G. Both of these measures helped increase the mobility of our strategic personnel
and as a result, sales and earnings increased in these sectors.

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

For recruiting activities, we continued to reexamine our recruiting processes. One step was hiring several hundred
people in advance in order to establish a process for the reliable hiring, training and placement of workers. We also
operate a Job Paper website for recruiting people that currently has more than 62,000 people registered. All of these
activities resulted in an increase in the number of people on assignments.
Training programs are a key strength that will give us a competitive edge over competitors. We use on -the-job
training by placing people in assignments that best match their skills and goals. We also have system to support for
determining career paths of each individual. These measures enhance the skills of our employees and improve theretention rate. Furthermore, we have completely reviewed and rebuilt our personnel evaluation system by using aprocess that included an external company. The objective is to grow into a company that is even more attractive(reinforcement of ability to attract people and clients). Furthermore, training, career support and the new evaluation
system are all measures that are consistent with the working style reform goal of giving everyone the same pay forthe same work. We started to package these activities to provide our customers with new solutions.
As a result, sales were 49,524 million yen, up 18.9% year on year and segment profit increased 22.5% to 3,169
million yen.
Technology Staffing Business
Sales and earnings continued to increase in the semiconductor, machinery, automobile, information andtelecommunication services, and other sectors of this business. Performance was supported by the consistentplacement of mechanical design engineers in the automobile industry and 5G and other system engineers, which are
two job categories where demand is strong.
Demand is increasing for inexperienced individuals who are suitable for undergoing training. To meet this demand,
we further expanded our personnel development scheme* that was started to supply people for receiving training as
engineers. By recruiting a broader range of people for these positions, we increased the number of people on thesetraining assignments, which raised sales and earnings.
We reinforced the framework for enabling our employees to use their own initiative to become eligible for a broader
range of job matching. For example, we are placing people in positions that match their personal skills. Placing
people in the most suitable training positions also allows us to receive higher fees and other benefits. This stronger
framework positions this business sector for more growth.

In addition, we continue to make steady progress with increasing the breadth of the Technology Staffing
Business. One example is services for construction engineers, a job category where demand in Japan is verystrong. There was also steady growth of sales and earnings in the repair category.
* Our personnel development scheme encompasses education and technology knowledge upgrades for current
employees who want to switch to a different career path, training programs for inexperienced people, such as
3D-CAD classes for inexperienced people at our Design Center, production technology classes at our Production
Engineering Center, JAVA, Python, embedded C and other programming classes offered in conjunction with
Advan Inc., and other education programs.
Sales were 15,200 million yen, up 25.0% year on year and segment profit increased 5.9% to 1,337 million yen.
R&D Staffing Business
There was steady growth in the temporary placement of research personnel mainly in positions involving chemistry
and synthetic chemistry. However, this business was unable to receive a large clinical research outsourcing order andthere were expenses for up-front investments to implement structural reforms. As a result, sales increased but
earnings were down in this business.
In the research personnel sector, as the leader in the outsourcing business for the temporary placement of researchpersonnel, we made investments to train people for assignments in job categories where there is more adde d value.
This made it possible to place people in jobs where we can charge higher rates, which made a contribution to thegrowth of earnings.
We have been involved with joint research projects with universities for many years. In 2018, we started a joint
research project with the Yamaguchi Laboratory of the Department of Applied Chemistry in the University of Tokyo

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

School of Engineering. This new project and other activities give us an even stronger capability to give our researchpersonnel highly advanced specialized knowledge and technologies.
At DOT World Co., Ltd., a clinical research outsourcing company, earnings were down because of the inability toreceive a large order in the first half of 2018 due to the client company’s decision to postpone testing. In the fourth
quarter of 2018, DOT World signed an advisory contract with Dr. Akifumi Matsuyama of the School of Medicine of
Fujita Health University. Dr. Matsuyama is a professor of regenerative medicine and head of the Regenerative
Medicine Support Promotion Facility at the university’s Center for Research Promotion and Support. By utilizing
this collaboration for studying and receiving advice on business strategies associated with gene and cell therapy,
regenerative medicine and other fields with excellent prospects for growth and employee training, DOT World
implemented structural reforms expected to produce benefits in 2019 and afterward.
Sales were 6,779 million yen, up 4.5% year on year and segment profit decreased 11.9% to 559 million yen.
Sales & Marketing Staffing BusinessThis business continued to conduct strategic business model reforms while limiting growth in 2018 in order toestablish a sound base for growth starting in 2019.
There were also measures to enter business domains with more added value and to reexamine the job categories andbusiness domains where this business provides staffing services. Another move was an up-front investment to start
operating a call center in order to strengthen administrative operations and improve the effic iency of recruiting
activities.
Sales were 3,533 million yen, down 38.4% year on year and segment loss was 100 million yen, compared with asegment profit of 219 million yen in 2017.
Real Estate BusinessIn the renovation business, which is a priority in this business sector, the number of residences involving renovation
increased about 30% year on year due to expanded areas for operations and a brand strategy. Another activity was a
new brand strategy, including the “ReColor” theme, in order to secure the talented people that will be needed due tothe anticipated growth of Japan’s renovation market. In real estate development operations, there were steady salesof newly constructed condominiums in all areas where this business has projects. Sales contracts have been signed
and closed for all condominium units at Residential Ikegami in Tokyo, Residential Ikoma in Nara and Residential
Musashigaoka in Kumamoto.
The performance of each category of this segment was as follows.
The real estate development business completed the sale of 187 condominium units and sold ten sites for business
use, resulting in property sales of 26,464 million yen. Sales from real estate brokerage and other activities totaled
2,540 million yen.
In the renovation business, 688 residences were sold and sales were 13,408 million yen.
The detached house business completed the sale of 321 custom-build and other houses and recorded sales of 7,735
million yen.
In the prefabricated house business, sales from rentals, sales and other activities totaled 1,864 million yen.
Sales were 52,011 million yen, up 6.0% year on year and segment profit decreased 1.0% to 4,589 million yen.
Information and Telecommunications Business
There were up-front investments in 2018 to establish a network of highly competitive stores in order to benefit fromour position as one of the few remaining companies in this business in association with the ongoing realignment of
the information and telecommunications sector. The result was higher sales but a decline in earnings .
Sales increased because of the higher number of phones sold, which was mainly the result of stores added in 2017.
But earnings were lower due to up-front investments and a strategic increase in marketing expenses.
Based on our strategy of establishing a dominant presence for our stores, we will continue to build a network ofhighly competitive stores. Activities will include closing and combining stores with a process that may use mergers

4WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

and acquisitions, and training programs to upgrade the customer service, consultation and other skills of store
personnel.
The cost-cutting solutions business, which serves small and midsize companies, continued to achieve growth in sales
and earnings. We added new products and conducted activities for starting new businesses in order to establish afoundation for growth in 2019 and afterward.
Sales were 12,376 million yen, up 35.0% year on year and segment profit decreased 85.1% to 3 million yen.
OthersAt Advan Inc., which mainly operates PC schools, growth continued in the creative sector, which includes website
production and other subjects. In addition, through collaboration with the Human Resources and Education Business,
Advan made a big contribution to improving the skills of people at all group companies. Expansio n of systemengineer training in the Technology Staffing Business is the biggest beneficiary of this collaboration. Overall, Advan
produced substantial synergies with other group companies in 2018.
Farm Co., Ltd. and its affiliate operate agricultural parks. In 2018, sales increased as the number of visitors to theseparks was higher than in 2017. Park attendance increased as the benefits of park improvements and a variety ofactions to attract more people outweighed the negative impact of unfavorable weather and natural disasters during
the peak season for these parks.
To further increase attendance, Farm has made up-front investments that are expected to produce growth in the
future. One major project is the construction of a very large athletic facility c alled Alps Gym at Blumen Hugel Farm,an agricultural park in Shiga prefecture. Alps Gym is scheduled to start operating in March 2019.
Sales were 3,467 million yen, up 21.4% year on year and there was a segment loss of 270 million yen, comparedwith a segment loss of 272 million yen in 2017.
(2) Financial Position
AssetsTotal assets decreased 75 million yen from the end of 2017 to 79,964 million yen at the end of 2018. This was
mainly due to increases of 597 million yen in cash and deposits, 1,048 million yen in notes and accounts
receivable-trade, 868 million yen in real estate for sale, and 732 million yen in property, plant and equipment, and a
3,560 million yen decrease in real estate for sale in process.
Liabilities
Total liabilities decreased 3,283 million yen from the end of 2017 to 57,616 million yen. This was mainly due toincreases of 244 million yen in notes and accounts payable-trade, 630 million yen in accounts payable-real estate,
368 million yen in income taxes payable, and 229 million yen in net defined benefit liability, and a 4,772 million yen
decrease in short-term loans payable.
Net assets
Net assets increased 3,207 million yen from the end of 2017 to 22,347 million yen mainly due to a 3,243 million yen
increase in retained earnings.
(3) Cash Flows
Cash and cash equivalents at the end of 2018 increased 597 million yen from the end of 2017 to 18,824 million yen.
Cash flows from operating activities
Net cash provided by operating activities was 9,277 million yen. Main positive factors include profit before income
taxes of 7,379 million yen, a 3,064 million yen decrease in real estate for sale and income taxes refund of 1,301
million yen. Major negative factors include income taxes paid of 3,268 million yen.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

Cash flows from investing activities
Net cash used in investing activities was 1,405 million yen. Main positive factors include proceeds of 39 million yen
from purchase of shares of subsidiaries resulting in change in scope of consolidation. Main negative factors include
payments of 1,310 million yen for purchase of property, plant and equipment and 100 million yen for transfer ofbusiness.
Cash flows from financing activities
Net cash used in financing activities was 7,538 million yen. Main positive factors include proceeds of 3,625 million
yen from long-term loans payable. Main negative factors include a net decrease of 6,674 million yen in short-termloans payable, repayments of long-term loans payable of 2,775 million yen and cash dividends paid of 1,390 million
yen.
Reference: Cash flow indicators
2014

2015

2016

2017

2018

Equity ratio (%)

16.1

19.2

19.4

22.3

26.3

Market value-based equity ratio (%)

44.7

42.3

46.8

75.3

45.3

1,373.7(704.2)(1,159.2)

522.8

403.5

19.7

(31.5)(21.7)

36.3

45.7

Interest-bearing debt to cash flow ratio (%)
Interest coverage ratio (times)
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 deduction 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 83.00 yen per share for 2018, as stated in “Notice of Dividends from Surplus”
announced on February 12, 2019.
We plan to pay a year-end dividend of 65.50 yen per share for 2019 in accordance with this policy.
(5) Outlook
The outlook for Japan’s economy in 2019 is still unclear because of slowing global economic growt h, particularly in
China, concerns about trade friction and other reasons.
To achieve more growth in corporate value, the World Holdings Group is currently implementing the New
Medium-term Management Plan 2021. The central goal is to continue growing consistently with a well-balanced
business portfolio by establishing new core businesses while strengthening existing businesses and extending ouractivities into more business domains.
In the Human Resources and Education Business, the operating environment is changing significantly. One reason is
responses to Japan’s decreasing working-age population, such as amendments to the Worker Dispatching Act, laws
associated with working style reforms, and amendments to the Immigration Control Act. All human resources andeducation companies are using their distinctive strengths to become more competitive as this business sector
continues to mature.
As the leader in Japan’s human resources and education sector, the World Holdings Group will use its insight to6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

determine the true nature of changes in the business climate. We will conduct a diverse array of activities involving
job creation, workforce training and education, and the creation of skilled workers. These are the core roles of thehuman resources business.
Training and education are our highest priority. We want employees to use training and education programs torealize their full potential and earn recognition for their skills. Raising the value of individuals, and then creatingteams of these people, will make it possible to move even faster concerning our long-standing core theme ofbuilding a human resources platform. Using this platform to heighten our presence in high -level market sectors will
enable us to further differentiate our services from those of competitors.
The Real Estate Business will conduct operations from a medium to long-term standpoint as the outlook for Japan’s
real estate market remains uncertain. The goal of this business is stability by focusing on core markets and regions,controlling the timing of procurement activities to match market conditions, and diversifying risk exposure.
Managing numerical performance indicators will make it possible to operate businesses while making management
decisions with a high degree of accuracy. For recurring-revenue businesses that are a source of steady income, wewill place emphasis on comparisons with prior-year performance. For one-time-fee businesses that generate sales
from individual projects, we will place emphasis on comparisons with the plan for each year.
In the Information and Telecommunications Business, our goal is to benefit as one of the few remaining companies
as a realignment takes place in industries associated with this business. We will continue to pursue our dominancestrategy as we establish a network of highly competitive stores. We will also use our solutions business for corporate
cost-cutting activities and new products and businesses in order to build a base for more growth.
Our plan is to expand outward from these three stable core businesses: human resources and education, real estate,
and information and telecommunications. At the same time, we are aiming for more growth by entering market
sectors that can become new core businesses.
Based on the above, we forecast net sales of 155,452 million yen (up 8.8% year on year), operating profit of 6,049
million yen (down 17.9% year on year), ordinary profit of 5,910 million yen (down 19.7% year on year), and profit
attributable to owners of parent of 3,672 million yen (down 21.0% year on year) in 2019.

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

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 environment 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 enviro nment and using the world’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
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 Informa tion 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 ofrecurring-revenue businesses that are a source of steady income and one-time-fee businesses that generate sales fromindividual projects.
3) Challenges
The outlook for the business climate is becoming increasingly unclear because of slowing global economic growth,
U.S.-China trade friction and other reasons. To continue growing steadily, the World Holdings Group is focusing on
the following key issues in its business segments.
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 as a one-stop source of comprehensive services to provide a diverse array of working
environments so that 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 even stronger framework for enabling our people to enhance their skills and achieve career goals as they do thejobs they want while receiving career advancement support and training from us. Using these activities to increase
our ability 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 segme nts
possible. We will work with client companies to provide workplaces for women, seniors and many other categories
of prospective employees.
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 and earnings
8WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

due to the difficulty of purchasing properties, a rapid increase in selling prices and othe r events over time.
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 from individual
projects, such as real estate development, and achieving the consistent growth of recurring-revenue businesses thatare a source of steady income. In addition, we are using information about current market conditions and trends
obtained from our nationwide network of offices for the creation of strategies that match the characteristics ofindividual regions of Japan. Controlling the timing of purchases and sales as well as other activities will allow us tomaintain 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 BusinessChanging needs of a maturing market
The needs of consumers are changing as Japan’s mobile phone sales market reaches maturity. The number of phones
sold is decreasing, carriers are reducing fees and other changes are taking place. Earnings of companies that sell
these phones may decline because of these events.
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 stability of this business, we are also
upgrading services for corporate customers and seeking opportunities to start new businesses. All of these measures
are aimed at establishing a structure that will enable this business to adapt to changes in the market needs.
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 co nsideration theuse of accounting standards in Japan and other countries.

9WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

4. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)
2018
(As of Dec. 31, 2018)2017(As of Dec. 31, 2017)
AssetsCurrent assets
Cash and deposits

18,227

18,825

Notes and accounts receivable-trade

10,204

11,252889

1,032

Real estate for sale

12,324

13,193Work in process

117

129

24,684

21,124

416

486

Other

3,499

4,270

Allowance for doubtful accounts

(48)

(5)

70,31570,309Merchandise and finished goods

Real estate for sale in process
Deferred tax assets

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

8,362

8,731

Accumulated depreciation(6,848)(7,059)Buildings and structures, net

1,513

1,671

Land

1,961

1,988

Other

3,308

3,988

Accumulated depreciation(2,076)(2,209)Other, net

1,232

1,778

4,707

5,439

1,552

1,046

368

312

1,921

1,359

Investment securities

821

442

Deferred tax assets

659

692

Lease and guarantee deposits

847

917

Other

845

878

Allowance for doubtful accounts

(77)

(74)

Total investments and other assets

3,094

2,856

9,724

9,654

80,03979,964

Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

(Millions of yen)
2018
(As of Dec. 31, 2018)2017(As of Dec. 31, 2017)
Liabilities
Current liabilities
Notes and accounts payable-trade

1,286

1,531

Accounts payable-real estate

1,187

1,818

Short-term loans payable

33,09428,321

Accrued expenses

5,827

5,963

Income taxes payable

1,509

1,877

Accrued consumption taxes

1,323

1,217

72

111

Other

4,874

5,290

Total current liabilities

49,175

46,130

9,566

9,112

547

667

1,181

1,411

Provision for bonuses

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

428

293

11,724

11,48560,89957,616

Capital stock

768

784

Capital surplus

949

965

Retained earnings

16,16919,412

Treasury shares

(126)

(126)

Total shareholders’ equity

17,761

21,036

Valuation difference on available-for-sale securities

36

12

Foreign currency translation adjustment

111

Remeasurements of defined benefit plans

9

(21)

Total accumulated other comprehensive income

57

(8)

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

Accumulated other comprehensive income

Share acquisition rights

133

124

Non-controlling interests

1,187

1,195

Total net assets

19,14022,34780,03979,964

Total liabilities and net assets

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Millions of yen)
2018
(Jan. 1 – Dec. 31, 2018)

2017(Jan. 1 – Dec. 31, 2017)
Net sales
Cost of sales

127,147
101,878

142,894
115,154

Gross profit

25,26827,740

Selling, general and administrative expenses
Provision of allowance for doubtful accounts
Directors’ compensations
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Provision for director’ retirement benefits
Welfare expenses
Depreciation
Rent expenses
Amortization of goodwill
Other

0
435
6,224
29
65
71
1,123
412
1,017
656
8,166

0
475
6,932
52
69
115
1,293
475
1,132
654
9,166

18,203

20,370

7,064

7,370

15
21

30
32

42

15

171

189

250

267

226
28
52

195
20
64

307

280

7,007

7,357

331
330

112
-

661

112

351

54

114

16

Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Subsidy income
Income of support to investment in property andequipment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Consumption taxes differential
Gain on forgiveness of debts
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on valuation of shares of subsidiaries andassociates
Loss on disaster

-

18

465

90

Profit before income taxes

7,204

7,379

Income taxes-current
Income taxes-deferred

2,449
24

2,784
(67)

Total income taxes

2,474

2,717

Profit

4,730

4,662

Total extraordinary losses

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

12

117

12

4,612

4,650

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

Consolidated Statement of Comprehensive Income(Millions of yen)
2018
(Jan. 1 – Dec. 31, 2018)

2017(Jan. 1 – Dec. 31, 2017)
Profit

4,730

4,662

Valuation difference on available-for-sale securities

10

(24)

Foreign currency translation adjustment

7

(15)

Remeasurements of defined benefit plans, net of tax

145

(30)

Total other comprehensive income

163

(70)

4,893

4,592

4,774

4,584

119

7

Other comprehensive income

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

13

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

(3) Consolidated Statement of Changes in Equity
2017 (Jan. 1 – Dec. 31, 2017)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodChanges of items during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentDisposal of treasury shares
Increase by addition of newly
consolidated subsidiary
Additional purchase of shares of
consolidated subsidiaries
Decrease in retained earnings
resulting from exclusion ofsubsidiaries from consolidation
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

Capital surplus Retained earnings Treasury shares

701

895

66

66

12,833

Total shareholders’equity(126)

14,303133(1,258)(1,258)

4,612

4,612
0

0

10

10

(12)

(12)
(28)

(28)

66

54

3,335

0

3,457

768

949

16,169(126)

17,761

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares
Dividends of surplus
Profit attributable toowners of parent
Disposal of treasury
sharesIncrease by addition of
newly consolidated
subsidiary
Additional purchase ofshares of consolidated
subsidiaries
Decrease in retained
earnings resulting fromexclusion ofsubsidiaries fromconsolidation
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

26

8

Total
Share
Remeasurements accumulated acquisitionof definedotherrightsbenefit plans comprehensive
income
(136)

(102)

162

Noncontrollinginterests

Total net
assets

1,099

15,464133(1,258)
4,612
0
10

(12)

(28)

10

3

145

159

(29)

88

218

10

3

145

159

(29)

88

3,675

36

11

9

57

133

1,187

19,14014

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 20182018 (Jan. 1 – Dec. 31, 2018)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodChanges of items during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Decrease by addition of newly
consolidated subsidiary
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

Capital surplus Retained earnings Treasury shares

768

949

15

15

16,169Total shareholders’equity(126)

17,76131(1,390)(1,390)

4,650

4,650
(0)

(0)

(16)

(16)

15

15

3,243

(0)

3,274

784

965

19,412(126)

21,036

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesDecrease by additionof newly consolidated
subsidiary
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

36

11

Total
Share
Remeasurements accumulated acquisitionof definedotherrightsbenefit plans comprehensive
income957133

Noncontrollinginterests

Total net
assets

1,187

19,14031(1,390)
4,650
(0)
(16)

(24)

(10)

(30)

(65)

(9)

7

(67)

(24)

(10)

(30)

(65)

(9)

7

3,207

12

1

(21)

(8)

124

1,195

22,347

15

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

(4) Consolidated Statement of Cash Flows(Millions of yen)
2018
(Jan. 1 – Dec. 31, 2018)

2017(Jan. 1 – Dec. 31, 2017)
Cash flows from operating activities
Profit before income taxes

7,204

7,379

Depreciation

564

696

Impairment loss

351

54

Amortization of goodwill

656

654

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for directors’ retirement
benefits
Increase (decrease) in net defined benefit liability

(0)

(0)

19

112

207

160

Interest and dividend income

(15)

(30)

Interest expenses

226

195

Loss on retirement of non-current assets

28

20

Loss on valuation of shares of subsidiaries and associates

114

16

(330)

-

Gain on forgiveness of debt
Decrease (increase) in notes and accounts receivable-trade(1,777)(929)

Decrease (increase) in inventories

(197)

(82)

Decrease (increase) in real estate for sale

4,496

3,064

695

838

Increase (decrease) in accrued expenses

1,003

100

Increase (decrease) in other current liabilities(1,287)413

Other, net

39(1,242)

Subtotal

11,99911,424

15

22

Increase (decrease) in notes and accounts payable-trade

Interest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund

(224)

(202)

(4,381)(3,268)

750

1,301

8,159

9,277

5

0

-

39

(2,022)

-

(276)

(70)

Purchase of property, plant and equipment(901)(1,310)Purchase of intangible assets

(59)

(37)

Payments for transfer of business

(194)

(100)

Net decrease (increase) in lease and guarantee deposits

(155)

(75)

Payments of loans receivable

(15)

(27)

Collection of loans receivable

183

7

Other, net

766

168

(2,668)(1,405)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Proceeds from purchase of shares of subsidiaries resulting
in change in scope of consolidation
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Purchase of investments in non-consolidated subsidiary

Net cash provided by (used in) investing activities

16

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

(Millions of yen)
2018
(Jan. 1 – Dec. 31, 2018)

2017(Jan. 1 – Dec. 31, 2017)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable

2,998(6,674)

Proceeds from long-term loans payable

5,048

3,625

Repayments of long-term loans payable(9,606)(2,775)

Repayments of lease obligations

(23)

(20)

Redemption of bonds

(245)

(290)

98

23

Proceeds from issuance of common shares
Purchase of treasury shares-(0)(1,258)(1,390)

(9)

-

(60)

(34)

(3,058)(7,538)6(13)

Net increase (decrease) in cash and cash equivalents

2,438

320

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary
Decrease in cash and cash equivalents resulting from exclusionof subsidiaries from consolidation
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries

15,764

18,227

68

276

(91)

-

47

-

Cash and cash equivalents at end of period

18,227

18,824

Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

17

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018(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 is available
and for which the Board of Directors performs periodic studies for the purposes of determining the allocation 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 and telecommunications
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 digital equipment,
temporary staffing for construction engineers(3) R&D Staffing Business: Temporary staffing for research personnel and clinical personnel, clinicalresearch outsourcing(4) Sales & Marketing Staffing Business: Temporary staffing for store sales people and office workers(5) Real Estate Business: Sale of residences and residential building sites, condominium management,
brokerage sales, real estate consulting, design/construction/sale of detached houses, renovations, realestate 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.

18

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

3. Information related to net sales, profit or loss, assets and other items for each reportable segment2017 (Jan. 1 – Dec. 31, 2017)(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
andMarketing Real Estate
Staffing
Staffing Staffing
Telecommuni- Subtotal
Staffing
Business
Business Business Businesscations
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)41,654

12,155

6,489

5,741

49,0809,167

124,2902,856

127,147-

127,147

0

476

-

525

21

10

1,034

82

1,116

(1,116)-

Total

41,655

12,632

6,489

6,267

49,101

9,178

125,324

2,939

128,263(1,116)

127,147

Segment profit(loss)

2,587

1,263

634

219

4,635

25

9,365

(272)

9,093

(2,029)7,064

Segment assets

6,516

2,450

1,295

751

53,113

3,631

67,757

1,914

69,671

10,36780,039

6

16

4

2

222

58

312

131

443

120

564

1

-

-

-

571

9

582

61

644

12

656

-

-

-

-

-

2

2

348

351

-

351

5

4

43

1

542

224

821

76

897

191

1,089

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 -2,029 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of
0 million yen, and -2,028 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expen ses that are not attributable toany of the reportable segments.
(2) The 10,367 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 120 million yen adjustment to depreciation is related to corporate assets that are not allocated to any of thereportable segments.
(4) The 12 million yen adjustment to amortization of goodwill is not allocated to any of the reportable segments.
(5) The 191 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 20182018 (Jan. 1 – Dec. 31, 2018)(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
andMarketing Real Estate
Staffing
Staffing Staffing
Telecommuni- Subtotal
Staffing
Business
Business Business Businesscations
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)49,524

15,200

6,779

3,533

52,011

12,376

139,427

3,467

142,894-

142,894

0

463

-

133

17

49

664

106

771

(771)

-

Total

49,525

15,664

6,779

3,667

52,02912,426140,091

3,574

143,666(771)

142,894

Segment profit(loss)

3,169

1,337

559

(100)

4,589

3

9,558

(270)

9,287

(1,917)

7,370

Segment assets

7,367

3,253

1,218

943

52,633

3,841

69,257

2,482

71,7408,223

79,964

7

18

11

1

273

67

380

156

537

159

696

1

37

-

-

563

25

628

11

639

15

654

-

-

-

-

17

37

54

-

54

-

54

6

72

14

0

514

161

769

658

1,428

130

1,558

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 -1,917 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of
16 million yen, and -1,933 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 toany of the reportable segments.
(2) The 8,223 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 159 million yen adjustment to depreciation is related to corporate assets that are not allocated to any of thereportable segments.
(4) The 15 million yen adjustment to amortization of goodwill is not allocated to any of the reportable segments.
(5) The 130 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.

20

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

Per-share Information
(Yen)
2018
(Jan. 1 – Dec. 31, 2018)

2017(Jan. 1 – Dec. 31, 2017)
Net assets per share

1,059.91

1,249.02

Net income per share

275.35276.38

Diluted net income per share

270.68272.02

Note: Basis for the calculation of net income per share and diluted net income per share is as follows:2017(Jan. 1 – Dec. 31, 2017)2018(Jan. 1 – Dec. 31, 2018)

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

4,612

4,650

-

-

4,612

4,650

16,750,222

16,825,751--

Increase in number of common stock (Shares)

288,831

269,645[of which share acquisition rights (Shares)][288,831][269,645]--

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.

21

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2018

5. Others
Consolidated Forecast for the First Half of 2019 (January 1 to June 30, 2019)(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
andMarketing Real Estate
Staffing
Staffing Staffing
Telecommuni- Subtotal
Staffing
Business
Business Business Businesscations
Business
Business

OthersAdjustments

Total

Net sales

24,344

8,554

3,654

1,746

19,517

6,714

64,531

1,983-

66,514

Segment profit

1,165

544

291

(33)

219

30

2,218

23

(1,184)

1,057

Consolidated Forecast for 2019 (January 1 to December 31, 2019)(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
andMarketing Real Estate
Staffing
Staffing Staffing
Telecommuni- Subtotal
Staffing
Business
Business Business Businesscations
Business
Business

OthersAdjustments

Total

Net sales

53,427

18,228

7,638

4,066

56,06312,019151,444

4,008-

155,452

Segment profit

3,309

1,548

719

40

2,753

157

8,528

45

(2,525)

6,049

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepar ed inaccordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an
English translation.

22