Consolidated Financial Results for the First Quarter of 2019
(Three Months Ended March 31, 2019)[Japanese GAAP]May 7, 2019

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, Executive Director, Head of Corporate Planning Division
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
May 14, 2019
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
None
Holding of quarterly financial results meeting:Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of 2019 (January 1 to March 31, 2019)(1) Consolidated results of operations
Net sales
Million yen

Operating profit%

Three months ended Mar. 31, 2019
30,614Three months ended Mar. 31, 201830,111
Note: Comprehensive income (millions of yen)

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Million yen%

Million yen

1.7
162(71.5)
159
3.6
570(69.1)
553
Three months ended Mar. 31, 2019: (18)Three months ended Mar. 31, 2018: 180

Net income per share
Three months ended Mar. 31, 2019
Three months ended Mar. 31, 2018%

Million yen(71.1)(69.5)(-%)(down 84.3%)

11
148

%

(92.5)(86.6)

Diluted net income per share

Yen

Yen

0.66
8.83

0.65
8.68

(2) Consolidated financial position
Total assets

Net assets

Million yen

Net assets per share

Equity ratio

Million yen

As of Mar. 31, 201977,887
20,925
As of Dec. 31, 2018
79,964
22,347
Reference: Shareholders’ equity (millions of yen)
As of Mar. 31, 2019: 19,672

%

Yen

25.3
1,168.49
26.3
1,249.02
As of Dec. 31, 2018: 21,028

2. Dividends
1Q-endDividends per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

2018
0.00
2019
2019 (forecast)
0.00
Note: Revisions to the most recently announced dividend forecast: None

-

83.00

83.00

-

65.50

65.50

3. Consolidated Forecast for 2019 (January 1 to December 31, 2019)
Net sales
Million yen

Operating profit%

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

Ordinary profit%

Million yen%

Yen

First half
66,514
3.3
1,057 (47.3)
992(50.4)
Full year
155,4528.8
6,049 (17.9)
5,910(19.7)
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

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) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly
Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated
Financial Statements” on page 10 for further information.

(3) 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

(4) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Mar. 31, 2019:

16,956,600 shares

As of Dec. 31, 2018:

16,956,600 shares

As of Dec. 31, 2018:

120,929 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2019:

120,952 shares

3) Average number of shares during the period
Three months ended Mar. 31, 2019:16,835,656 shares

Three months ended Mar. 31, 2018: 16,815,313 shares* The current financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements, and other special items
Cautionary statement with respect to forecasts
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 regarding future performance. Actual results
may differ materially from the forecasts for a number of reasons. Please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward -looking Statements” onpage 5 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for financial results
Supplementary materials for the quarterly financial results will be disclosed today ( May 7, 2019), using the Timely Disclosure
network (TDnet).

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

5(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

5

2. Quarterly Consolidated Financial Statements and Notes

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income

8

Quarterly Consolidated Statement of Income
For the Three-month Period

8

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period

9(3) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Changes in Significant Subsidiaries during the Period

10

Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

10Additional Information

10

Segment Information

11

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
There was a downturn in sentiment in many business sectors in Japan in the first quarter of 2019 in response toslower economic growth in China, lackluster IT demand, Japan’s chronic labor shortage, the rebound in the priceof crude oil and other reasons.
The World Holdings Group achieved higher sales in the first quarter but earnings fell. Performance benefited
from the steady growth of the core Human Resources and Education Business a s group companies took actions inline with work-style reform measures in Japan. However, a reexamination of the Real Estate Business strategy
due to changing market conditions and investments for future growth in the Information and Telecommunications
Business had a negative impact on first quarter performance.
The Human Resources and Education Business has the strategic goal of making our brand more powerful(increasing the ability to attract people and clients) in order to more clearly differentiate us from competitors. To
build a base for accomplishing this goal, this business made investments for strengthening training programs thatdevelop the skills of its workforce and for restructuring the personnel system. Even while making theseinvestments, this business continued to increase sales and earnings, making a contribution to the growth of theentire World Holdings Group.
The Real Estate Business continues to use a cautious stance regarding purchases and sales of properties becauseof persistently high prices of real estate that have signs of an asset bubble. In addition, there were activities
during the first quarter to make the brand stronger, primarily for renovation activities.
The Information and Telecommunications Business is closing and consolidating stores to build a network ofhighly competitive stores in response to the major shift taking place in Japan ’s mobile phone sales market.
Providing more solutions for corporate clients is another priority of this business.
Net sales increased 1.7% year on year to 30,614 million yen. Operating profit decreased 71.5% to 162 million yen,ordinary profit decreased 71.1% to 159 million yen, and profit attributable to owners of parent decreased 92.5%
to 11 million yen.
Results by business segment are described below.
Factory Staffing Business
There were activities for growth in the core logistics category and for the growth of operations at subcontracting
locations in many industries. We also made investments aimed at growth in order to differentiate oper ations fromthose of competitors.
In the logistics sector, sales and earnings continued to increase along with measures to achieve stable operations
at locations that were opened in 2018. Training programs for specific job categories and levels, chiefly managers,
are another key activity in this sector in order to prepare for the addition of more locations in 2020 and afterward.
In the machinery and electrical/electronic products and semiconductor sectors, performance was affected byproduction cuts and other actions in response to changing market conditions due to continuing U.S. -China trade
friction and other factors. To capture high-volume contracts in the second half of 2019, there were measures tostrengthen subcontracting operations and provide custo mers with teams of workers. In addition, we upgradedrecruiting, education and administrative capabilities in this sector.
We are recruiting people from an increasingly broader range of skills, backgrounds and other characteristics byusing our Job Paper website, which has more than 64,000 people registered. Separately, we hired about 270 new
college graduates and immediately assigned them to locations, mainly subcontracting business sites, where they
can develop their skills.
In 2019, we will start using in stages a new personnel system that was created with the assistance of companies
outside the World Holdings Group. We plan to have a system that provides the same pay for the same work
starting in April 2020. There is also steady progress involving work-style reform initiatives. In addition,
preparations have been made for the provision of new solution packages to customers.

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019As a result, sales were 11,785 million yen, up 4.1% year on year and segment profit decreased 22.5% to 506
million yen.
Technology Staffing Business
There were big increases in the number of people on assignments, sales and earnings due to the success of theCreating the Ways We Live Academy*, a training and skill development scheme that has been a key component of
this business for some time.
This academy is consistently supplying design engineers, mainly for the automobile industry, resulting in an
increase in the number of client companies. Furthermore, the number of system engineers qualified for JAVA,
embedded software, IT network infrastructures and other fields increased. These activities, along with theresulting improvement how customers value our services, resulted in higher fees that contributed to sales andearnings.
Other activities in this business are adapting to the shift of current customers to higher-end business sectors andentering market sectors with good prospects for growth, such as 5G telecommunications and self -driving vehicles.
These activities position this business to aim for more growth starting in the se cond half of 2019.
For recruiting activities, our sound training programs make it possible to hire people who have no experience in aparticular technology field. We are also making steady progress with hiring experienced individuals who can
become team leaders. In addition, this business hired about 170 new college graduates and quickly placed them insuitable assignments. Overall, these activities resulted in a steady increase in the number of people on
assignments.
* The academy is a training platform that gives new and current employees access to a variety of so-called
relearning programs. Current employees can change career paths or upgrade existing technology skills. A
Design Center teaches 3D-CAD skills to people with no experience involving this technology and a Production
Engineering Center gives people training in this field. In addition, in conjunction with Advan Inc., the academy
offers JAVA, Python, embedded C and other programming classes, Linu x network and other infrastructure
training, and other education programs.
Sales were 4,037 million yen, up 28.1% year on year and segment profit increased 41.2% to 354 million yen.
R&D Staffing Business
Sales and earnings increased along with solid performances involving both the temporary placement of re searchpersonnel and clinical research outsourcing.
In the research personnel sector, the priorities are recruiting skilled research scientists and giving people training
with emphasis on a dedication to providing customers with the best possible services . These activities helped us
achieve a strategic increase in the volume of business with current clients in the life sciences category.
About 100 new college graduates were hired, almost 50% more than in 2018, and these people were quickly
placed in assignments. As a result, this business is positioned for growth in the second quarter and afterward.
DOT World Co., Ltd., a clinical research outsourcing company, conducted a reconfirmation of its markets and areexamination of its business activities with the assistance of individuals from outside the World Holdings Group.
The company is using this process to implement structural reforms as well as to capture orders for clinical trials
for client companies and other projects. Due to these activities, sales and earnings remained firm.
Sales were 1,692 million yen, up 6.2% year on year, and segment profit increased 6.0% to 106 million yen.
Sales & Marketing Staffing BusinessThis business has reached the final stage of structural reforms that began in 2018. To in crease sales and earnings
in the second half, the goal is to grow in current business domains while entering other market sectors where thebusiness can add significant value.
In April 2019, World Holdings and JTB Communication Design, Inc. established JW Solution Co., Ltd., for theprovision of human resource services to the hotel industry. Substantial demand is anticipated in the hotel industry
3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019

for recruiting people. JW Solution plans to supply hotels with Japanese employees as well as with people fromother countries who have advanced or designated skills.
Sales were 810 million yen, down 22.5% year on year, and segment loss was 17 million yen, compared with asegment loss of 12 million yen one year earlier.
Real Estate Business
The renovation business, which is using a strategy centered on a powerful brand, performed well and is making
progress with establishing a sound base for its operations. The real estate development business is retaining acautious stance regarding property purchases and sales but was still able to post sales and earnings that werehigher than planned. Preparations are under way to start a conversion business in 2020 and we are also
considering other new businesses.
The performance of each category of this segment was as follows.
The real estate development business sold three sites for business use, resulting in property sales of 1,463 million
yen. Sales from real estate brokerage and other activities totaled 208 million yen.
In the renovation business, 200 residences were sold and sales were 4,636 million yen.
The detached house business completed the sale of 58 custom-build and other houses and recorded sales of 1,548
million yen.
In the prefabricated house business, sales from rentals, sales and other activities totaled 436 million yen.
Sales were 8,291 million yen, down 9.8% year on year and segment loss was 23 million yen, compared withsegment profit of 217 million yen one year earlier.
Information and Telecommunications Business
To resume growing in the second half of 2019, the mobile phone shop business made investments for training its
workforce in order to improve the reputation of stores and the ability of store personnel to provide outstanding
services. In addition, some stores were closed or consolidated in order to est ablish a network of highly
competitive stores that can fully benefit from being one of the few remaining mobile phone retailers in Japan. As
a result, there were 47 directly operated stores at the end of the first quarter.
The corporate solutions business expanded its operations to include Kumamoto and Kagoshima prefectures andadded new products. Furthermore, there were activities to capture more synergies with World Holdings Group
companies, such as the consideration of using the outstanding sales skills of this business to assist othercompanies with their sales activities.
Sales were 3,369 million yen, up 0.6% year on year, and segment loss was 88 million yen, compared with asegment profit of 37 million yen one year earlier.
OthersAt Advan Inc., which mainly operates PC schools, the creative sector, which includes website production andother subjects, performed well. In addition, Advan increased synergies with other group companies by making a
big contribution to training the employees of the Human Resources and Education Business.
Farm Co., Ltd. and its affiliate operate agricultural parks. There is steady progress with the revitalization of all ofthese parks. Most significantly, the number of visitors at Blumen Huge l Farm, an agricultural park in Shiga
prefecture, was almost twice as high as one year earlier following the March 2019 opening at this park of anenormous athletic facility called Alps Gym.
Sales were 628 million yen, up 38.2% year on year, and there was a segment loss of 126 million yen, comparedwith a segment loss of 196 million yen one year earlier.

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019(2) Explanation of Financial Position
AssetsTotal assets decreased 2,076 million yen from the end of 2018 to 77,887 million yen at the end of the first quarterof 2019. This was mainly due to decreases of 4,068 million yen in cash and deposits, 1,002 million yen in notes
and accounts receivable-trade, and increases of 808 million yen in real estate for sale and 2,211 million yen inreal estate for sale in process.
Liabilities
Total liabilities decreased 654 million yen from the end of 2018 to 56,961 million yen. This was mainly due todecreases of 766 million yen in accounts payable-real estate and 1,524 million yen in income taxes payable, andan increase of 1,734 million yen in long-term loans payable.
Net assets
Net assets decreased 1,422 million yen from the end of 2018 to 20,925 million yen mainly due to a 1,368 million
yen decrease in retained earnings.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The Company maintains its first-half and full-year consolidated forecasts that were announced in the“Consolidated Financial Results for 2018” on February 12, 2019.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of 2019
(As of Mar. 31, 2019)2018(As of Dec. 31, 2018)
AssetsCurrent assets
Cash and deposits

18,825

14,756

Notes and accounts receivable-trade

11,252

10,250

Merchandise and finished goods

1,032

1,324

Real estate for sale

13,19314,001Work in process

129

133

Real estate for sale in process

21,12423,335

Other

4,270

3,980

(5)

(6)

69,82367,776

5,439

5,568

1,046

893

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other

312

313

1,359

1,206

Investment securities

442

424

Deferred tax assets

Total intangible assets
Investments and other assets

1,178

1,243

Lease and guarantee deposits

917

957

Other

878

784

Allowance for doubtful accounts

(74)

(74)

Total investments and other assets

3,342

3,335

10,140

10,11079,96477,887

1,531

1,352

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Accounts payable-real estate

1,818

1,052

Short-term loans payable

28,321

27,943

Accrued expenses

5,963

5,283

Income taxes payable

1,877

353

Accrued consumption taxes

1,217

1,094

111

631

-

0

Provision for bonuses
Provision for directors’ bonuses
Other

5,290

6,503

Total current liabilities

46,13044,216

9,112

10,846

667

168

1,411

1,467

293

262

11,485

12,74557,61656,961

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

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019

(Millions of yen)First quarter of 2019
(As of Mar. 31, 2019)2018(As of Dec. 31, 2018)
Net assets
Shareholders’ equity
Capital stock

784

784

Capital surplus

965

976

Retained earnings

19,412

18,043

Treasury shares

(126)

(126)

Total shareholders’ equity

21,036

19,677

Valuation difference on available-for-sale securities

128Foreign currency translation adjustment

1

3

Remeasurements of defined benefit plans

(21)

(16)

Accumulated other comprehensive income

(8)

(5)

Share acquisition rights

Total accumulated other comprehensive income

124

124

Non-controlling interests

1,195

1,129

Total net assets

22,347

20,92579,96477,887

Total liabilities and net assets

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)(Millions of yen)First three months of 2019
(Jan. 1 – Mar. 31, 2019)

First three months of 2018
(Jan. 1 – Mar. 31, 2018)
Net sales

30,111

30,614

Cost of sales

24,90925,342Gross profit

5,201

5,272

Selling, general and administrative expenses

4,631

5,109

570

162

9

7

Operating profit
Non-operating income
Subsidy income
Income of support to investment in property andequipment
Other

0

14

35

42

Total non-operating income

4563Interest expenses

47

46

Other

15

20

Total non-operating expenses

63

67

553

159

Insurance income-

10Consumption taxes differential

-

29

Other

-

0

Total extraordinary income-

39

Impairment loss-

4

Loss on disaster11

7

Total extraordinary losses

11

12

Profit before income taxes

541

187

Income taxes

359

210

Profit (loss)

181

(23)

Profit (loss) attributable to non-controlling interests

33

(34)

Profit attributable to owners of parent

148

11

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

8

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019( Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)

Profit (loss)

First three months of 2018
(Jan. 1 – Mar. 31, 2018)(Millions of yen)First three months of 2019
(Jan. 1 – Mar. 31, 2019)

181

(23)

2

(4)

(6)

4

2

4

(1)

4

180

(18)

148

13

32

(32)

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity

Not applicable.
Changes in Significant Subsidiaries during the Period
Not applicable.
The following information is provided even though these two actions were not a change in a significant
subsidiary.
HOEI HOME CO., LTD., which was a non-consolidated subsidiary in 2018, is included in the consolidated
financial statements starting in the first quarter of 2019 because of the increasing significance of this company.
KITAYAMA REBEN CO., LTD., which was a non-consolidated subsidiary in 2018, is included in the
consolidated financial statements starting in the first quarter of 2019 because of the increasing significance of thiscompany.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
The tax expenses are calculated by first reasonably estimating the effective tax rate after the application of tax
effect accounting with respect to profit before income taxes for the fiscal year in which the quarter under review
falls, and multiplying that rate by the profit before income taxes for the quarter under review. However, theCompany uses legally stipulated effective tax rates to calculate tax expenses for cases in which using estimatedtax rates gives a noticeably irrational result.
Additional Information
Application of the “Partial Amendments to Accounting Standard for Tax Effect Accounting,” etc.
Effective from the first quarter of 2019, the Company has adopted the “Partial Amendments to AccountingStandard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28, February
16, 2018) and other related pronouncements. Accordingly, deferred tax assets and deferred tax liabilities havebeen presented in the investments and other assets section and the non -current liabilities section of the balance
sheet, respectively.

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019

Segment Information
I. First three months of 2018 (Jan. 1 – Mar. 31, 2018)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni- Subtotal
Staffing
Business Business BusinessBusinesscations
Business
Business

Others(Note 1)

Total

Amounts
shown onAdjust- quarterly
ments consolidated(Note 2) statement ofincome(Note 3)

Net sales
Sales toexternal
11,3203,151 1,594
1,046
9,194
3,349
29,656454 30,111
30,111
customers
Inter-segment
sales and
115
39
3
4
163
21
184
(184)
transfers
Total
11,3203,266 1,594
1,085
9,198
3,354
29,819475 30,295(184)
30,111
Segment
653
250
100
(12)
217
37
1,246
(196)
1,049
(478)
570
profit (loss)
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. The -478 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 12
million yen, and -491 million yen in corporate expenses that cannot be allocated to any of the reportable segments.
Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of thereportable segments.
3. Segment profits (loss) are adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Not applicable.
Significant gain on bargain purchaseNot applicable.

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2019

II. First three months of 2019 (Jan. 1 – Mar. 31, 2019)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni Subtotal
Staffing
Business Business BusinessBusiness-cations
Business
Business

Others(Note 1)

Total

Amounts
shown onAdjustquarterly
ments consolidated(Note 2) statement ofincome(Note 3)

Net sales
Sales toexternal
11,785
4,037 1,692
810
8,291
3,369 29,985
628 30,613
030,614
customers
Inter-segment
sales and
109
28
4
3
145
30
175 (175)transfers
Total
11,785
4,146 1,692
838
8,295
3,372 30,130
658 30,789 (174)
30,614
Segment
506
354
106
(17)
(23)
(88)
836
(126)
709 (546)
162
profit (loss)
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. The -546 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 4
million yen, and -550 million yen in corporate expenses that cannot be allocated to any of the reportable s egments.
Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of thereportable segments.
3. Segment profits (loss) are adjusted to be consistent with operating profit shown on the quarterly consolidate dstatement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
There is no significant change.
Significant gain on bargain purchaseNot 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.

12