Consolidated Financial Results for the First Quarter of 2021
(Three Months Ended March 31, 2021)[Japanese GAAP]May 12, 2021

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange, First Section
2429
URL: http://www.world-hd.co.jp
Eikichi Iida, Chairman and President
Shigeru Nakano, Director, Business Management Division Manager
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
May 14, 2021
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 Three Months of 2021 (January 1 to March 31, 2021)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%

Three months ended Mar. 31, 2021
33,032Three months ended Mar. 31, 2020
36,480Note: Comprehensive income (millions of yen)

Million yen

%

(9.5)
1,682
23.8
1,825
31.0
1,324
19.2
1,358
734.5
1,393 773.1
1,640
Three months ended Mar. 31, 2021: 1,389 (down 17.2%)
Three months ended Mar. 31, 2020: 1,678 (-%)

(19.3)-Net income per share
Three months ended Mar. 31, 2021
Three months ended Mar. 31, 2020

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

Million yen%

Million yen%

Diluted net income per share

Yen

Yen

75.88
96.83

75.44
96.17

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

As of Mar. 31, 2021
83,767
29,706
As of Dec. 31, 2020
79,15730,061
Reference: Shareholders’ equity (millions of yen)
As of Mar. 31, 2021: 28,192

Yen

33.7
1,615.33
36.1
1,638.03
As of Dec. 31, 2020: 28,589

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

3Q-endYear-end

Total

Yen

Yen

Yen

Yen

2020
0.00
2021
2021 (forecast)
0.00
Note: Revisions to the most recently announced dividend forecast: None-

101.70101.70

-

78.70

78.70

3. Consolidated Forecast for 2021 (January 1 to December 31, 2021)
Net sales
Million yen

Operating profit%

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

Ordinary profit%

Million yen%

Yen

First half
63,657 (10.1)
1,302 (53.0)
1,283 (55.3)
Full year
150,194
4.6
6,465
3.4
6,388
(5.9)
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

886
4,573

(64.5)(22.7)

50.81
262.02

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): 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 9 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, 2021:

17,566,900 shares

As of Dec. 31, 2020:

17,566,900 shares

As of Dec. 31, 2020:

113,477 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2021:

113,477 shares

3) Average number of shares during the period
Three months ended Mar. 31, 2021:

17,453,423 shares

Three months ended Mar. 31, 2020: 16,942,798 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 futur e 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 4 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for quarterly financial results
Supplementary materials for the quarterly financial results will be disclosed today ( May 12, 2021), using the Timely Disclosure
network (TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

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

2(2) Explanation of Financial Position

4(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income
For the Three-month Period

7

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

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Changes in Significant Subsidiaries during the Period

9Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

9

Segment Information

10

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
The Japanese economy recovered slowly during the first quarter of 2021 following the end of the state of
emergency, but COVID-19 remains a serious problem. In the manufacturing sector, which is the primary marketof the World Holdings Group, exports and production expanded because of the economic recoveries in the UnitedStates, China and other countries. However, there is still a risk of an economic downtu rn in Japan caused byanother wave of COVID-19 infections, another state of emergency or some other event. As a result, the outlook
for the economy remains uncertain.
The performance of the Human Resources and Education Business, the core business of Worl d Holdings, wasstrong during the first quarter because of strategic investments in key business sectors and the use of the coverageof many market sectors, which is a major strength of this business, for the seamless linkage of operations
spanning many industries. As a result, this business was the primary source of growth of consolidated results ofoperations. First quarter consolidated sales and earnings were higher than planned as operating and ordinary
profit were higher than one year earlier and sales were slightly lower.
Net sales decreased 9.5% year on year to 33,032 million yen. Operating profit increased 23.8% to 1,682 million
yen, ordinary profit increased 31.0% to 1,825 million yen, and profit attributable to owners of parent decreased
19.3% to 1,324 million yen.
Factory Staffing Business
Sales and earnings were supported by the continuing strength of the 5G and semiconductor categories, which are
strategic markets for this business, as well as by a recovery from the COVID -19 downturn in the automobile
industry and all other industries that use the services of this business. The logistics sector, which is a key strengthof this business, also contributed to the growth of sales and earnings despite some up -front expenditures. Progress
is continuing with operations at a logistics base newly established at the end of 2020. In 2020, our highest priority
was maintaining employment of our people in all factory staffing categories during the COVID-19 crisis. We also
focused on training programs and other activities to upgrade the ability of our workforce to perform factory tasks.
Due to these actions during 2020, this business was able to respond with speed and flexibility to many types oforders. In addition, an increase in production volume for all subc ontracted work performed at client companies
contributed to sales and earnings.
To increase the efficiency of recruiting activities, we made improvements on our owned media Job Paper website
and other channels. These measures also reduced expenses. Preparations have been completed for a further
expansion in the second quarter and afterward.
As a result, sales were 15,941 million yen, up 31.6% year on year and segment profit increased 53.1% to 714
million yen.
Technology Staffing BusinessAll categories of this business have been gradually recovering after the downturn caused by the COVID-19 crisis.
The volume of work increased in the semiconductor, telecommunications, construction engineering and otherindustries. Growth was particularly strong for production process development work due to firm demand
involving 5G and semiconductors. In the automobile industry, which is a priority of this business, we establisheda training program for control technologies in response to increasing demand involving CASE (c onnected,
autonomous, shared, electric) technologies. This training will give this business a sound base for more growth in
2022.
Hiring skilled engineers has become even more difficult because of the recovery taking place in a variety ofindustries that require engineers. We reexamined our recruiting methods and are giving our employees training s
to upgrade their skills and advance their careers in order to supply customers with personnel who have an evenhigher level of technical skills.
Sales were 4,246 million yen, up 0.9% year on year and segment profit increased 17.6% to 543 million yen.

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

R&D Staffing BusinessIn the core research personnel staffing sector, there were strong performances in the medical, biotech nology,
chemicals, analysis and all other existing business categories. The performance of this sector also benefited fromone-time demand created by the COVID-19 crisis, such as for personnel for PCR tests and the development ofvaccines. This business also expanded activities to new market sectors. The result was sales and earnings thatexceeded the plan.
Measures to upgrade new training programs also contributed to the performance of this business. In addition,
recruiting activities are progressing as planned and preparations are under way fo r recruiting expenditures to aim
for more growth.
Sales were 1,889 million yen, up 7.9% year on year, and segment profit increased 27.9% to 218 million yen.
Sales & Marketing Staffing BusinessAlthough the volume of apparel work declined because of COVID -19, the call center and light duty categories
performed well. Call center performance was supported by growth in orders related to one-time sources ofdemand associated with COVID-19. In the light duty category, there were preparations for more growth in 2022
and afterward, such as by shifting more of these projects to subcontracting work at client companies. As
COVID-19 continues to impact the tourism industry, a number of new activities started. One is our participationin the human resources sharing program in Okinawa led by JTB Okinawa Corp. and Okinawa Cellular Telephone
Company.
Sales were 1,008 million yen, up 1.1% year on year, and segment loss was 12 million yen , compared with asegment profit of 8 million yen in the first quarter of 2020.
Real Estate BusinessWe are adopting a cautious stance in this business because of consistently high real estate prices in Japan thatshow signs of an asset bubble. In the core real estate development category, the committed credit facility
established in 2020 was used to purchase quality properties and for other activities expected to produce
significant benefits. Sales were down significantly because a large property was sold in the first quarter of 2020
but were generally in line with the plan. One reason was the use of carefully planned marketing activities in orderto generate high earnings from sales of properties. A large percentage of property sales in 2021 are expected totake place in the fourth quarter.
In the renovation category, activity was low as 2021 started because we held down property acquisitions during2020 because of COVID-19. We are retaining a cautious stance as we seek properties that can provide a suitable
return on renovation projects as we look ahead to the performance of this business in 2022.
Sales were 6,783 million yen, down 52.4% year on year, and segment profit decreased 14.0% to 740 million yen.
Information and Telecommunications Business
Another period of significant changes is taking place in Japan in the mobile phone shop bu siness, the largest
component of this segment. Two major causes of these changes are COVID -19 and the launch by mobile phone
carriers of rate plans sold only online, a response to requests by the Japanese government to reduce mobile phone
rates. The profitability of this business has temporarily declined sharply because of up-front expenditures formeasures to remain competitive. Major initiatives include a scrap-and-build approach for shops to establish a
network of highly competitive shops, numerous sales promotion activities, and employee training programs. Our
goal remains to establish dominant positions in our targeted markets and receive benefits as one of the survivors
in the mobile phone shop market in order to resume the growth of this business.
Sales were 2,443 million yen, down 2.0% year on year, and segment profit decreased 95.5% to 4 million yen.

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

OthersCOVID-19 had a severe impact on the performance of agricultural parks in 2020. However, the performance ofagricultural parks is recovering steadily and attendance during the first quarter exceeded the level prior to the
COVID-19 crisis. The main reasons are increasing recognition of parks as outdoor facilities that people can enjoy
while avoiding close contact among visitors and our appropriate activities which use this strength to attract
visitors.
Sales were 719 million yen, up 5.9% year on year, and there was a segment loss of 62 million yen, compared witha segment loss of 141 million yen in the first quarter of 2020.
(2) Explanation of Financial Position
AssetsTotal assets increased 4,610 million yen from the end of 2020 to 83,767 million yen at the end of the first quarterof 2021. This was mainly due to increases of 1,504 million yen in real estate for sale and 3,492 million yen in realestate for sale in process.
Liabilities
Total liabilities increased 4,964 million yen from the end of 2020 to 54,060 million yen. This was mainly due toan increase of 1,811 million yen in short-term borrowings, a decrease of 1,134 million yen in accrued
consumption taxes and an increase of 4,406 million yen in long-term borrowings.
Net assets
Net assets decreased 354 million yen from the end of 2020 to 29,706 million yen mainly due to a decrease of 446
million yen in retained earnings. Retained earnings decreased due to dividend from surplus of 1,775 million yen,while there was an increase due to profit attributable to owners of parent of 1,324 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
World Holdings maintains its first-half and full-year consolidated forecasts that were announced in the“Consolidated Financial Results for 2020” on February 8, 2021.

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of 2021
(As of Mar. 31, 2021)

2020(As of Dec. 31, 2020)
AssetsCurrent assets
Cash and deposits

22,817

21,574

Notes and accounts receivable - trade

12,817

12,815639

804

Real estate for sale

5,748

7,252

Work in process

123

103

Real estate for sale in process

22,14625,639

Other

3,842

4,303

(2)

(3)

68,132

72,490

5,297

5,285

Goodwill

104

92

Other

186

173

Total intangible assets

291

265

Investment securities

1,550

1,755

Deferred tax assets

Merchandise and finished goods

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

Investments and other assets
2,398

2,444

Leasehold and guarantee deposits

903

946

Other

808

802

Allowance for doubtful accounts

(224)

(224)

Total investments and other assets

5,436

5,725

11,024

11,276

79,157

83,767

1,072

1,228

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

527

1,602

Short-term borrowings

17,20419,016

Accrued expenses

6,746

5,878

Advances received

552

347

Income taxes payable

1,049

620

Accrued consumption taxes

3,110

1,975

124

562

Provision for bonuses
Other

4,248

3,825

Total current liabilities

34,63735,05812,073

16,480

172

166

1,921

2,005

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

5

291

350

14,45819,00249,09554,060WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

(Millions of yen)First quarter of 2021
(As of Mar. 31, 2021)

2020(As of Dec. 31, 2020)
Net assets
Shareholders’ equity
Share capital

1,244

1,244

Capital surplus

1,443

1,443

Retained earnings

26,05425,607

Treasury shares

(119)

(119)

Total shareholders’ equity

28,62328,176

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

(15)

22

Foreign currency translation adjustment

1

13

Remeasurements of defined benefit plans

(20)

(19)

Total accumulated other comprehensive income

(34)

16

49

61

Share acquisition rights
Non-controlling interests

1,422

1,452

Total net assets

30,061

29,706

79,157

83,767

Total liabilities and net assets

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

(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 2021
(Jan. 1 – Mar. 31, 2021)

First three months of 2020
(Jan. 1 – Mar. 31, 2020)
Net sales
Cost of sales

36,48030,46333,032
27,063Gross profit

6,017

5,969

Selling, general and administrative expenses

4,658

4,286

Operating profit

1,358

1,682

8

131

42

-

36

60

87

191

44
8

37
10

52

48

1,393

1,825

175
3

-

178

-

Profit before income taxes

1,571

1,825

Income taxes

(127)

492

Profit

1,699

1,332

58

8

1,640

1,324

Non-operating income
Subsidy income
Income of support to investment in property andequipment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of shares of subsidiaries and associates
Insurance claim income
Total extraordinary income

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

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)First three months of 2020
(Jan. 1 – Mar. 31, 2020)(Millions of yen)First three months of 2021
(Jan. 1 – Mar. 31, 2021)

1,699

1,332

Valuation difference on available-for-sale securities

(16)

37

Foreign currency translation adjustment

(6)

18

1

0

(20)

56

1,678

1,389

1,621

1,374

56

14

ProfitOther comprehensive income

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

8

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

(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
TOHOWORLD Corporation, which was a non-consolidated subsidiary in 2020, is included in the consolidated
financial statements starting in the first quarter of 2021 because of the increasing significance of this company.
This change is not deemed as a change in a significant subsidiary.
Application of Special Accounting Methods for Presenting Quarterly Consolidated F inancial 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, World
Holdings uses legally stipulated effective tax rates to calculate tax expenses when the use of estimated tax rates
produces a clearly irrational result.

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

Segment Information
I. First three months of 2020 (Jan. 1 – Mar. 31, 2020)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Factory Technology
R&D
Staffing Staffing
Staffing
Business BusinessBusiness

Information
Sales &
OthersandMarketing Real Estate
Telecommuni- Subtotal (Note 1)
Staffing
Businesscations
Business
Business

Total

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

Net sales
Sales toexternal
12,114
4,207
1,750
997
14,2382,492 35,800
679 36,480
36,480
customers
Inter-segment
sales and
123
45
4
2
176
27
204
(204)
transfers
Total
12,114
4,330
1,750
1,043
14,242
2,495 35,977
707 36,684(204)
36,480
Segment
466
462
170
8
861
91
2,061
(141)
1,919
(560)
1,358
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 -560 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 11
million yen, and -572 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 profit (loss) is 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.

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2021

II. First three months of 2021 (Jan. 1 – Mar. 31, 2021)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Others
Factory Technology
R&D
Real
and
MarketingStaffing
Staffing
Staffing
Estate Telecommuni- Subtotal (Note 1)
Staffing
Business Business BusinessBusinesscations
Business
Business

Total

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

Net sales
Sales toexternal
15,941
4,246
1,889
1,008
6,783
2,443
32,312
719 33,032
33,032
customers
Inter-segment
sales and
13
133
72
2
4
226
29
255
(255)
transfers
Total
15,954
4,379
1,889
1,081
6,785
2,447
32,538749 33,287(255)
33,032
Segment
714
543
218
(12)
740
4
2,208
(62)
2,146
(464)
1,682
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 -464 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 10
million yen, and -474 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 profit (loss) is 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.

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

11