FY2020 First Quarter Financial Results

May 11, 2020 (Mon)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Contents

I. Summary of FY2020 First Quarter Financial Results
Summary of Financial Results
YoY Overview of Business Results by Segment
Details of Each Segment
Financial Condition B/S

… P3
… P4
… P5
… P13

II. Outlook for the Term Ending Dec. 2020
Regarding the Impact of COVID-19
FY2020 Business Forecast
FY2020 Factors for Increasing or Decreasing Operating Income
FY2020 Full-year Business Forecast by Segment
Shareholder Returns
Topics

… P15
… P16
… P17
… P18
… P19
… P20

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

1

I. Summary of FY2020 First Quarter Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Summary of Financial Results⚫ The impact of COVID-19 on the Human Resources and Education Business and the Real
Estate Business, which are our core businesses, was limited in the first quarter, so bothsales and profits were healthy.
⇒ For details on the impact of COVID-19, please see page 15.
(Unit: Million yen)

2019/1Q
actual2020/1Q
estimate*

2020/1Q
actualResult against
estimate
Surplus

YoY
ChangePct. Change

30,61435,57836,480+902+5,866+19.2%

Operating income

162

539

1,358

+819

+1,196+735.1%

Ordinary income

159

-

2,128

-

+1,969+1238.4%

Net income attributable toowners of parent

11

-

1,640

-

+1,629+14725.1%

Net sales*Announced on February 17, 2020
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

3

YoY Overview of Business Results by Segment

2019/1Q
actualUnit: Million yen(Prof it margin)

2020/1Q
actualYOY(Prof it margin)

ChangeNet sales

18,325949
11,785
506
4,037
354
1,692
106
810
-17
8,291
-23
3,369
-88
629
-126
30,614

Elimination or
corporate-547

Operating income

162

Net sales

3,011
-154
5,280
130

Net sales

Total

Segment income

Human
ResourcesandEducation
Business

Factory BusinessTechnology BusinessNet sales
Segment income
Net sales
Segment income

R&D BusinessNet sales
Segment income

Sales & Marketing
Business

Real EstateBusiness

Real EstateBusiness

Information andTelecommunications
Business

Information andTelecommunications
Business

Other

Others

Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales
Segment income

Total(5.2%)(4.3%)(8.8%)(6.3%)－－－－

19,0691,108
12,114
466
4,207
462
1,750
170
997
8
14,238
861
2,492
91
679
-141
36,480(5.8%)(3.9%)(11.0%)(9.8%)(0.9%)(6.1%)(3.7%)－-560(0.5%)

1,358(3.7%)

744
159
329
-39
170
108
57
64
186
26
5,947
885
-876
180
50
-15
5,866

Pct.
Change

4.1
16.8
2.8
-7.9
4.2
30.6
3.4
60.8
23.1
－
71.7
－
-26.0
－
8.1
－
19.2

-13

－

1,196

735.1

6,811
984
-864
-99

226.2

<Reference>
Real EstateBusiness

Development/Single-family
housingRenovation/PrefabricatedhousesSegment income
Net sales
Segment income－(2.5%)

9,822
830
4,416
31

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved(8.5%)(0.7%)

－
-16.4
-76.2

4

Human Resources and Education BusinessOverall Segment<Composition ratio of sales and segment income by segment>⚫ Response to the changing external environment, including the amendment of laws
⇒Continued measures from the medium- and long-term perspective in order to raise the brandstrength (capability of gathering workers)⚫ The impact of COVID-19 is limited as of now.
⇒ The Factory Business was partially affected, but it did not produce any significant effects on
Technology or R&D Business.
◆Sales composition◆Segment income
Up 4.1%(Million yen)

22,50020,00017,50018,325

18,848

4.4%
9.2%

5.4%
9.2%

22.1%

22.2%

15,00019,069Up 1.2%

YoY(Based on
monetary
amount)1,200+23.1％
+3.4％

22.1%

+4.2％

400

5,000

63.5%

+2.8％

200
0

2,500
0

736
37.3%

10,000
63.2%

15.4%

11.2%

12,500

64.3%

949

800

600

7,500

1,108

Up 50.4% 0.8%
1,000

5.2%
9.2%

Up 16.8%(Million yen)

41.7%

16.4 %
41.4%

53.3%

42.1%

43.1%
-1.9%

-0.9%

-200
2019/1Q
actualFactory

2019/1Q

2020/1Q
estimate

Technology

R&D

actualSales & Marketing

2020/1Q

actualFactory

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

estimate
Technology

R&D

actualSales & Marketing5

Human Resources and Education BusinessOverall Segment<The number of staff members>⚫ The Factory Business was favorably affected by the increase in efficiency in the logistic
field and was negatively affected by the temporary drop in utilization rate of some clients,
but it was offset by the performance of 5G and semiconductor-related businesses.
⚫ In the Technology Business, we gave top priority to the development of human resources,
and assigned trainees to respective sections as planned.
◆Variation in the number of staff (3-month average)*(Persons)
YoY

25,00020,00019,11515,000

1,540
996
2,115

19,889
1,261
1,005
2,472

20,70320,704

1,362
1,093

1,513
1,074

2,639

2,654

21,645
1,701
1,045
2,634

19,887
1,543
1,028
2,655

+282
+23
+183

14,661-490

10,00014,46415,151

15,60915,463

16,2662018/1Q

2019/1Q

2019/2Q

2019/3Q

2019/125,000

0Factory

Technology

R&D

2020/1Q

Sales & Marketing

The number of staff in the Factory Business includes external staff members accepted from other companies.

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

6

Human Resources and Education Business

Factory Business<Sales composition by business segment and the number of staff members>⚫ Some clients faced difficulty in procuring components and had to suspend operation for ashort period of time, but 5G and semiconductor-related transactions we had been
increasing strategically performed well.
⚫ We fortified our recruitment system, for example, by securing personnel with theconsortium model.
◆Sales composition by business segment(Million yen)

YoY
(Based on
monetary
amount)Up 2.8%14,00011,785

12,114

11,905

19.5%

17.7%

8,000

(Million yen)

2.3%
5.9%

4.1%
4.5%

13.3%

12.9%

4.3%

3.9%

36.8%

35.7%

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

Down 7.9%

18,000506+16.2％

500+88.9％-20.5％
+2.4％

400

-3.1％

◆Variation in the number of staff (3-month average)600

Up 1.8%12,00010,000◆Segment income

Up 46.9%

466

+2.3％

317

10,000300

19.8%
2019/1Q
actualElectric & Electronics
Semiconductors
Othersestimate
Logistics
Machinery

8,971

9,442

2019/1Q

2020/1Q

0
2019/1Q
actualactual

945

2,000

0

2020/1Q

1,464

6,000

200

+3.0％

0

4,274

8,000

100
19.3%

14,661
[286]

4,716

12,000

4,000
2,000

15,151[274]

14,000

6,000

4,000

16,0002020/1Q
estimate

actualAutomobiles
Environment & Energy*We have not disclosed the sales estimate by segment.

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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>⚫

Both sales and profits were healthy in the businesses related to semiconductors, automobiles, information andtelecommunications service, construction technology, etc.
We plan to fill higher posts, by enhancing the recruitment of highly skilled experienced workers and improving the training
programs for brushing up skills and shifting up a gear to go with the times.

⚫

*For existing employees, the main courses include those for career change and brushing up their skills. For inexperienced ones, the major courses include 3DCAD training at Design Center, training in production engineering at “Production Engineering Center,” programming training in coordination with Advan Inc.,and network infrastructure training.

◆Sales composition by business segment(Million yen)

5,000

4,000

◆Segment income
YoY(Based on
monetary
amount)Up 4.2%
4,037

4,192

4,207

2,000

500
450

25.0%

+8.1％

400

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

Up 30.6%

462
Up 51.8%

Up 0.4%

24.9%

3,000

(Million yen)

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

2,500

354

8.2%
7.8%
4.7%
16.0%

+12.6％

9.6%
4.7%+32.5％

21.6%+45.8％

+6.8％

1,500

250

30.5%

-14.2％

0500

50Semiconductors
Machinery
Construction technology

2020/1Q
estimate

2019/1Q
actualactual

1,526

737

730

2019/1Q

2020/1Q

00
2019/1Q
actual

1,360

1,000

100

38.3%

399

200
150

1,000

2,655
[178]

2,000

304

300

2,472
[175]
375

350
8.6%

3,000

2020/1Q
estimate

actualInformation and telecommunications service
Automobiles
Others*We have not disclosed the sales estimate by segment.

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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 dealt with an increase of orders for staffing in the pharmaceutical field, testing kits,clinical trials, etc. related to COVID-19, although it is limited.
⚫ To evolve from a “staffing company” and win the trust as a “research supporting enterprise,”
we recruited excellent researchers, and concentrated on the improvement of their researchand human skills through collaborative research with affiliated universities.
◆Sales composition by business segment(Million yen)

2,000

YoY
(Based on
monetary
amount)Up 3.4%
1,692

1,500

◆Segment income

1,736◆Variation in the number of staff (3-month average)(Persons) *Parentheses signify the number of new employees.

Up 60.8%(Million yen)

200

1,750

1,200

Up 41.1%

Up 0.8%

12.0%

14.6%

7.6%
7.4％

170
1,000

-14.9％

+6.8％

1,005
[96]
87

1,028
[80]
77

150
800

120
106

1,000

39.9%

39.3%

+4.9％

600

100

400
500

919

951

2019/1Q

2020/1Q

50
40.5%

38.7％

0

200

+8.2％

0

0
2019/1Q
actual2020/1Q
estimate

Pharmaceutical/biotechnology

ChemicalactualClinicalCRO

2019/1Q
actual2020/1Q
estimate

Clinical(entrusted with DOT)

actualOthers*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*As for the Real Estate Business, keeping in mind the characteristicsof this business, we are conducting management practices while
seeing the trends compared with annual estimates.

<Sales composition by business segment, and the number of pieces of real estate handed over>⚫ As for development-related business, we handed over three pieces of commercial premises, whose sales
posting had been postponed until this term, as planned.
⚫ Comprehensively considering the external environment, we kept a cautious stance for procurement. In
preparation for the reversal of the external environment, we prepared for the establishment of bases forfinancial businesses, including asset management.
◆Sales composition by business segment◆Segment income

Up 71.7%(Million yen)

16,00013,49414,000

14,238

YoY(Based on
monetary
amount)3.7%+21.8％

12,00027.3%-19.8％

10,0003.1%-71.1％

8,000
6,000

Up 5.5%

1,000

861
800
600

8,291

512

400

5.3%
58.4％

65.8%

4,000
2,000

(Million yen)

+540.7％

200

0

18.7%

-23

17.6%

0

-200
2019/1Q
actual2020/1Q
estimate

2019/1Q
actualactual2020/1Q
estimate

actualDevelopment-related
Single-family housing
Renovation-related
Prefabricated house-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 for each target and segment income>⚫ Through the measures and investment focused on the strengthening of the shop business conducteduntil the previous term (such as personnel development for establishing organizations and shops thatcomply with amended laws and improving the capability of attending to customers and knowledge),
revenue per shop increased. (Note: Since the first quarter of this segment is from Oct. to Dec., there
was no impact of COVID-19.)⚫ The operation of shops is now restricted, but the impact is still limited.
◆Sales for each target◆Segment income
Down 26.0%(Million yen)

YoY
(Based on
monetary
amount)

4,000
3,500

80

8.6%

60

2,572

2,500

9.9%

Segment income(overall)

40

2,492
Down 3.1%

91

100

3,369

3,000
-14.8％

2,000
1,500

(Million yen)

20

4

0
-20

91.4%
90.1%

1,000

-27.1％

-40
-60

500

-80

0

-100
2019/1Q
actual2020/1Q
estimate

actualMobile phone shop businessCorporate solutions business-88
2019/12actualMobile phone shop business2020/1Q
estimate
Corporate solutions businessactualTotal*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>⚫ FARM CO., LTD., which operates the agricultural park business, saw an increase of customers, thanks tothe effects of capital investment until the previous term and the relatively warm winter from Jan. to Feb.
However, the performance in March was sluggish, due to the voluntary restraint of going out.
⚫ ADVAN CO., LTD. exerted synergy in educational business inside and outside the corporate group.
◆SalesYoY(Based on
monetary
amount)Up 8.1%(Million yen)

800

629
600

◆Segment income◆Number of visiting customers(Million yen)

(Ten thousand)

0

679

663

13.2

Up 2.5%

16.4%

13.9

14

-5.5％

-50
13

18.8%

-100
400

12
71.6%

70.6%

+9.7 ％

-150

-126

-141

200

11
-200

0

12.1%

10.6%

-184

+22.8％-250

2019/1Q
actual2020/1Q
estimate

School-related (ADVAN CO., LTD.)

actualAgricultural park-related

10
2019/1Q
actual2020/1Q
estimate

2019/1Q

2020/1Q

actualOther*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⚫ Advances received, which increased temporarily in the previous term, decreased.
Total assets(Million yen)

100,000

87,35280,12580,00060,00076,92070,16740,000

Fixed
assets

20,0000

10,431

9,958

End of FY2019

End of FY2020 1Q

Fixed assets(Million yen)

100,000-293 million yen-1,076 million yen-3,827 million yen-2,742 million yen

9,958 (-473)

Total property, plant and equipment
Investment securities-665 million yen-607 million yen

Current assets

Total liabilities/net assets

87,35280,12580,00060,000Current
70,167 (-6,753)
assetsCash and deposits
Notes and accounts receivable-tradeReal estate for sale
Real estate for sale in process

52,79044,601

10,617

10,30323,94425,220End of FY2019

End of FY2020 1Q

Liabilities

54,905 (-8,502)

Short-term debt
Accounts payable-real estateAdvances received
Long-term debt

＋1,162 million yen-737 million yen-6,211 million yen-335 million yen

Net25,220 (+1,276)
assetsRetained earnings＋787 million yen

40,00020,0000
Net asset

Fixed liabilities

Current liabilities

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13II. Outlook for the Term Ending Dec. 2020

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14Regarding the Impact of COVID-19

Human Resources and Education Business

The impact of COVID-19 varies among clients. Some clients postponed staffing, whileother clients increased staff. The impact of the pandemic on our company is limited
as of now, as we negotiated with clients for leave compensations and utilized
employment adjustment subsidies.
As countermeasures, we shifted from recruitment to marketing, cemented alliances withother dispatch business operators, and strengthened the training of employees.
Real Estate BusinessThere is no delay in the delivery of real estate whose contracts have been concluded and the construction of
condominiums whose schedule was set to be not tight considering the Tokyo Olympics.
While there is a possibility that customers’ willingness to purchase will weaken, it is assumed that the environment for
procuring real estate will improve.

Financial security
Cash management is judged by applying appropriate stress onto sales for both the Human Resources and Education
Business and the Real Estate Business, and the commitment line is set accordingly.

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

15

FY2020 Business Forecast⚫ The earnings forecast announced on February 10 does not take into account the impact of
COVID-19, but it has not been revised, because the impact in the first quarter was minor. If
it becomes necessary to revise the forecast, we will announce it swiftly.
Results for theterm ended Dec.
2019

Forecast for theterm ending
Dec. 2020

Unit: Million yen, %YoYChangePct. Change

Net sales

136,319

159,682

23,363

17.1

Operating income

4,730

7,851

3,121

66.0

Ordinary income

4,805

8,338

3,533

73.5

Net income attributable to

2,956

5,601

2,644

89.5

175.59332.6099.8

157.01

89.4

47.1

89.4

owners of parent

EPS (yen)
Dividend per share (yen)52.7

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

16

FY2020 Full-year Business Forecast by Segment⚫ The Human Resources and Education Business, which is the mainstay, will keep
growing year on year.
(The initial forecast has not been revised.)
Results forthe term
ended Dec.
2019

Unit: Million yen, %Net sales

Total
Segment income
Net sales

Human
ResourcesandEducation
Business

Factory Business
Segment income
Net sales

Technology Business
Segment income
Net sales

R&D Business
Segment income

Sales & Marketing
Business

Real EstateBusiness

Real EstateBusiness

Inf ormation andTelecommunications
Business

Inf ormation andTelecommunications
Business

Net sales
Segment income
Net sales
Segment income
Net sales
Segment income
Net sales

Other

OthersSegment income
Net sales

Total

Elimination o r
corporate
Operating income

77,774
5,179
50,001
2,679
16,902
1,761
7,108
711
3,761
27
42,082
1,460
12,34410
4,118
132
136,319-2,052
4,730(Profit margin)(6.7%)(5.4%)(10.4%)(10.0%)(0.7%)(3.5%)(0.1%)(3.2%)(3.5%)

Forecast for
the term
ending Dec.
2020

88,3396,006
57,3893,399
18,327
1,913
7,446
753
5,176
-59
56,3694,126
10,644
220
4,330
153
159,682-2,654
7,851

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YOY(Profit margin)(6.8%)(5.9%)(10.4%)(10.1%)(―)(7.3%)(2.1%)(3.5%)(4.9%)

Change10,566
827
7,388
720
1,425
152
338
41
1,415
-87
14,287
2,666-1,700209
211
21
23,363(―)
3,121

Pct. Change

13.6
16.0
14.8
26.9
8.4
8.6
4.8
5.8
37.6
(―)
33.9
182.6
-13.8
1,910.6
5.1
16.3
17.1
(―)
66.0

17

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

99.8

Dividend per share

100.0

Initial estimate
Results

90.0

82.7 82.8 83.0

80.0

75.3
68.5

70.0

65.5

63.2

60.0

52.7

50.0

45.7

40.0
30.0

23.7 25.3

20.0
10.0

8.5

8.510.0

2012/122013/12

4.5

14.3

0.0
2014/122015/122016/122017/122018/122019/122020/12(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 Reserved

18Foray into New Fields in Collaboration with Leading Companies[Tourism field][Material field]
Toho Titanium Co., Ltd.
Know-how of human resources businessKnow-how of manufacturing

TOHOWORLD CORPORATION
Commercialization of inheritance oftechnologies and skills in the material field
Scene of “Press conference on the establishment of TOHOWORLD CORPORATION”(Feb. 20; Kitakyushu City Hall, Civic Club)
Scene of “Press conference regarding the collaborative business of World Holdings and JTB Group”(Jan. 28, at Imperial Hotel)

From left

From left

Eikichi Iida
Chairman andPresidentWORLD HOLDINGS
CO., LTD.

Shinji Honda
President andRepresentative
Director
JW SOLUTION CO.,LTD.

Hiroyuki Takahashi
Akihiko Hosono
Representative
Representative Director,
Director, President, President, and Executiveand Executive Officer
Officer
JTB Corporation
JTB Communication
Design, Inc.

Hiroki Nagai
President andRepresentative
Director
TOHOWORLDCORPORATION

HiroshiMatsubara
Director andManaging
Executive
Officer
Toho Titanium
Co., Ltd.

Katsuhiro Kuriyama
Kenji Kitahashi
Eikichi Iida
Director, Managing Mayor of Kitakyushu
Chairman andExecutive Officer
City
PresidentWORLD HOLDINGS WORLD INTEC CO.,LTD.
CO., LTD.

We aim to create a new human resources business market
by establishing joint ventures and applying the consortium model.
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19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 soliciting purchases orsales of our stock. Furthermore, opinions, forecasts and other information not based on
historical facts represent our judgments at the time this presentation was prepared. We do
not guarantee the accuracy of this information and may revise this information at any time
without prior notice. We and other providers of this information assume no responsibility
whatsoever for any losses incurred in association with the information in this presentation.

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