FY2016 Third Quarter Financial Results

November 7, 2016 (Mon.)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

Ⅰ. Summary of FY2016 Third Quarter Financial Results
Ⅱ. FY2016 Business Forecasts

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1

Ⅰ. Summary of FY2016 Third Quarter Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Strategies and Activities in Each Business Segment
Human Resources and EducationBusinessTo expand our business domain in variousfields
Good results in the logistics andrepair fields
To expand our business through M&A
Reorganization of Nikken Techno Co., Ltd.
and Noritz Taiwan
Co., Ltd. into subsidiaries

To increase the employment of personnel
with various ambitions
Establishment of a job-placement office
for women

Real Estate BusinessInformation andTelecommunications Business<Development>
Upfront acquisition of promising land,adjustment of rights, and sale of land lots
we developed/for expensive property

To enrich in-store services

Steady procurement of land
while land prices are skyrocketing<Renovation>
To promote the procurement at reasonableprices by utilizing our experience in eachregion
Steady procurement at a higher pace thanthe estimatedContinued training of store staff

To expand the network of stores
To open 2 new stores and1 relocated store

To increase cooperative enterprises
Progressed in the logistics fieldTo systematize career development
Development of career plansfor each segment<Prefabricated houses>[Operation of a newly established facility(Kumamoto Branch)]
To increase new contracts in eastern Japanarea

Sale as well as rental is healthy.

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To increase products we handle(Primary products)
To cultivate new products
for corporations

3Third Quarter Summary Sales were almost the same as those for the same period in the previous fiscal year due to the difference inbudget allocation for Real Estate Business, while operating and ordinary income grew considerably on the backof the favorable performance of Real Estate Business.
 Thanks to Real Estate Business, the progress rates of operating and ordinary income toward the full-year budget
have already exceeded 100%.

Unit: M illion yen, %FY2015/3Q
actual

FY2016/3Q
actual

69,736

69,67560

0.1

100,111

69.6

Operating income

4,943

6,506

1,562

31.6

6,275

103.7

Ordinary income

4,912

6,454

1,541

31.4

6,153

104.9

Net income attributable toowners of parent

3,556

3,678

121

3.4

3,814

96.4

Net sales

YOY
ChangePtc. Change

Full-year
budget*Ratio to fullyear budget*Announced on February 3, 2016

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4Sales by Business Segment for 3Q


Human Resources and Education Business was healthy due to the synergy with other segments in the logistics field.
Real Estate Business contributed significantly to the increase in operating income, as the handover of real estate progressed steadily.
The profitability of Information and Telecommunications Business improved, thanks to the efforts for making store operation more
efficient, which have been made since the previous fiscal year.

FY2015/3Q
actualUnit: Million yen, %Factory Busine ss

Technology Busine ss

Human Resources
and Education
Business

R&D Busine ss
Sale s & Marke tingBusine ss
O the rs

T otal (reference)

Real Estate Business

Real Estate Busine ss

Information andInformation andTele communications
Busine ss

Telecommunications
BusinessNet sales

19,860

Segment income

1,324

Net sales

7,075

Segment income

775

Net sales

3,442

Segment income

362

Net sales

2,762

Segment income

153

Net sales

344

Segment income

12

Net sales

33,485

Segment income

2,628(6.7%)(11.0%)(10.5%)(5.6%)(3.6%)(7.8%)Net sales

27,535

Segment income

3,412

Net sales

8,714

Segment income△47(―)

4,943(7.1%)(12.4%)

69,736

Net sales
Total(Profitmargin)

Elimination or corporate

Operating income△1,049FY2016/3Q
actual21,623
1,539
7,437
772
4,022361
4,021236350
1237,455
2,923
26,422
4,999
5,796
164
69,675△1,581
6,506(Profitmargin)

YoY
Change(7.1%)(10.4%)

P ct. change

8.9

32,571215

16.2

2,316361

5.1

10,669

△2

△ 0.3

952

16.9

5,650

1,259

△0.4

45.6

5,525

54.3

296

5

1.7

547

0

3.8

26

△183(5.9%)(3.7%)(Profitmargin)

1,762

580
(9.0%)

Full-year
budget*

565

3,969

11.9

54,963(7.8%)

295

11.2

4,157

△1,113△ 4.0

37,092(18.9%)

―200

△ 0.1

100,111(2.8%)

1,587

46.5

3,921

△2,917△ 33.58,056

1,56231.6(9.3%)

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211△60△2,003
6,275

Ratio to fullyear budget

66.4(7.1%)

66.5
69.7(8.9%)

81.1
71.2(10.0%)

63.9
72.8

(5.4%)

79.7(4.8%)

46.2(7.6%)

70.3(10.6%)

127.5

64.0
68.1
71.2
71.9(2.5%)

82.0
69.6(6.3%)

103.7*Announced on February 3, 2016

5

Progress of Each Segment with Respect to the Budget(1) Human Resources and Education Business
Sales were affected by the Kumamoto Earthquake, but the income in each segment was
healthy as planned.
Factory businessTechnology business

R&D business

Sales & Marketing business

4Q
3Q

Net Sales

2Q
1Q
前年度
FY
2015

今年度予算

Budget

今年度
FY
2016

The Kumamoto Earthquake
affected our performance, but it
recovered mainly in thelogistics field.

前年度
FY

今年度予算
Budget

2015

今年度
FY

2016

Income in each segment expanded
thanks to the deployment oftraining staff at Design Center andthe cooperation with the logistics
field.

前年度
FY

2015

今年度予算
Budget

今年度
FY

2016

30 new graduates recruitedin Oct. Healthy due to theextension of the period ofthe DOT project.

前年度
FY
2015

今年度予算
Budget

今年度
FY

2016

Significant growth thanks toexisting business and thecooperation with the logistics
field.

4Q

Segment income
3Q
2Q
1Q
前年度
FY

2015

今年度予算
Budget

今年度
FY

前年度
FY

2016

2015

今年度予算
Budget

今年度
FY

前年度
FY

2016

2015

今年度予算
BudgetCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

今年度
FY

2016

前年度
FY
2015

今年度予算
Budget

今年度
FY

2016

6Progress of Each Segment with Respect to the Budget(2) Real Estate and Information and Telecommunications Businesses
As for Real Estate Business, handover progressed steadily. The income in this segment exceeded the estimate significantly.
As for Information and Telecommunications Business, the income in this segment recovered thanks to the business
investment started last year.
Real estate businessInformation andtelecommunications business

4Q

Net Sales

FY
前年度
2015

4Q

3Q

3Q

2Q

2Q

1Q

1Q

Budget
今年度予算

FY
2015

FY
今年度

前年度

2016

Handover progressed steadily. The
income in this segment exceeded theannual estimate.

Budget
今年度予算

FY
2016

今年度

The income in this segment recovered
thanks to the streamlining of store
operation started last fiscal year.

1Q

Segment income

2Q
3Q
4Q

前年度
FY
2015

今年度予算
Budget

今年度
FY

2016

FY
前年度
2015

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Budget
今年度予算

FY
今年度

2016

7Factory Business<Sales composition by business segment and the number of staff>
 In the logistics field, our cooperative systems established with other sectors and cooperative
companies functioned, swiftly meeting the rapidly growing needs for the increase of manpower. This
contributed to the significant growth of our business.
 In the manufacturing field, our business grew, especially for semiconductors for smartphones.
Sales composition by business segment (%)(Million yen)

20,00018,000Up 8.9%21,623

19,860

YoY(Based onmonetaryamount)

1,400

-1.0％
＋18.6％-50.9％

1,000
800

23.3%

14,0005.8%

12,000

12.9%

15.7%

＋58.0％

10,000

10.9%

4.8%

-26.8％

8,000

7.1%

6,000

15.2%

26.2%

＋87.8％

16,000

1,600

21.2%
6.3%
5.8%

4,000
2,000

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

24,00022,000

Segment income

24.8%

20.0%

2015 3Q

2016 3Q-11.9％

Electric & Electronics
Automobiles
MachineryOthers

Logistics
Semiconductors
Environment & Energy(Persons)

10,000

1,324

8,953
8,153

8,000

1,200

1,566

6,000

1,291
617

674

4,000

600

7,045
5,913

400

2,00020000

Up 16.2%

1,539

2015 3Q

2016 3Q0

2015 3Q

2016 3Q

Average 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 othercompanies are included.
*Number of staff included only staff members who are engaged in on-site operation work.

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8Technology Business<Sales composition by business segment and the number of staff>
 In the fields of information and telecommunications business and automobiles, the deployment of training staff at
Design Center in which we invested this term progressed steadily.
 In the construction section, the know-how of facility management was applied to the logistics field, and ourbusiness domain expanded.
 For the purpose of strengthening the repair section, we reorganized Nikken Techno Co., Ltd. into a subsidiary.
Sales composition by business segment (%)(Million yen)

8,000

7,075 Up 5.1%

(Million yen)

(Persons)

YoY(Based onmonetaryamount)

1,000

2,000

27.4%

＋7.5％

800

600

7,437

7,000
6,000

26.8%

5,000

5.6%
5.2%

6.2%
4.8%

＋16.6％
-2.0％

15.6%

16.4%

＋10.0％

4,000

775

Down 0.3%

1,845
1,688

772
1,500

296216698

779

7747702015 3Q

2016 3Q

1,000
400

3,000
2,000

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

Segment income

46.8%

45.2%

＋1.5％

500

200

1,00002016 3Q
Others 2015 3Q
Automobiles
Machinery
Information and telecommunications businessSemiconductors

02015 3Q

2016 3Q

0Engineer other than production
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.

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9

R&D Business<Sales composition by business segment and the number of staff>
 Sales were healthy, as the number of orders from the makers of medical apparatus and generic medicines increased.
 30 new graduates to be employed in Oct. through a recruiting organization, which has been in operation since lastyear.
 DOT International Co,. Ltd. invested mainly in personnel development, and strengthened its capability of dealing
with large-scale transactions.
Sales composition by business segment (%)(Million yen)

(Million yen)

4,500

400

4,000
3,500
3,000

Up 16.9% 4,022
3,442

23.1％

YoY
(Based onmonetaryamount)＋14.4％(Persons)

362 Down 0.4% 361

1,000

883
800

300

600
45.4％
41.9％

200
＋26.6％

400

1,500

800
667

100

1,000
500

83745
78

23.6％

2,500
2,000

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

Segment income

34.5％

31.5％

2015 3Q

2016 3Q+ 6.7％

00Clinical
ChemicalPharmaceutical/biotechnology

2002015 3Q

2016 3Q0

2015 3Q

R&D staff

2016 3Q

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

*PV=Abbreviation of Pharmacovigilance
To appropriately and swiftly collect and analyze safety information, such as the side effects ofpharmaceutical products.

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10Sales & Marketing Business<Sales composition by business segment and the number of staff>
 CB (Dispatch of sales staff) expanded considerably, as we concentrated on the direct transactions
with department stores and mass retailers.
 OCS (Dispatch of operators for call centers, etc.) grew significantly, due to the expansion of existing
business through the firm relations with leading vendors and the synergy with the logistics field.
Sales composition by business segment (%)(Million yen)

(Million yen)

4,500

250

4,000
3,500
3,000

4,021

Up 45.6%
2,762

39.2％

YoY
(Based onmonetaryamount)

2,000

Up 54.3%

2,500

60.8％
60.1％

153
150

1,500

100

1,00050500

1,206

1,460695+ 47.4％
1,128765

500
0

2,334

2,000

39.9％

1,500
1,000(Persons)236200+ 42.8％

2,500

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

Segment income0
2015 3QCB

2016 3Q

2015 3Q

2016 3QOCS0

2015 3Q
CB

2016 3QOCS*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged in on-site operation work.

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11Real Estate Business<Sales composition by business segment and major real estate we developed> Development-related: Handover progressed steadily, and contributed significantly to the increase ofincome in this segment.
 Renovation-related: As procurement was healthy in the previous term, sales exceeded the estimate.
 Prefabricated houses-related: Transactions with major clients progressed healthily.
Sales composition by business segment (%)(Million yen)

30,00025,00027,535
20.8%(Million yen)

Down 4.0%
26,4222.5%
24.9%

Major real estate we developed

Segment income

YoY(Based onmonetaryamount)

4,999

5,000

Residential Shinagawa Nakanobu Gran ClassUp 46.5%4,0003,412＋13.3 ％

20,0003,000
15,00010,00079.2%

2,00072.6%- 13.4 ％1,0005,0000

2015 3Q

2016 3Q

Prefabricated houses-related
Renovation-related
Development-related02015 3Q

2016 3Q*The prefabricated house business was established in 4Q ofFY 2015, as Omachi World Co., Ltd. became a subsidiary.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved<Location> Nakanobu, Shinagawa-ku, Tokyo<Access> 2 min. on foot from “Ebaranakanobu” Station of Tokyu
Ikegami Line
<No. of units to be sold> 52 units

12Information and Telecommunications Business<Variations in sales and the number of stores> We enhanced the sale of related products to meet the needs of customers, increasing
revenue per customer.
 The streamlining of store operation, which was started in the previous fiscal year, led tothe improvement of productivity per staff member and the reduction of fixed assets.
Sales for each target(Million yen)

(Million yen)200

10,000

8,714
8,000

Development of stores that would be chosen by customers

Segment income

9.1%

Down
33.5%

YoY
(Based onmonetaryamount)

5,796

6,000

164
15010013.8%
+0.8％

4,000

50

90.9%

86.2%

2,000-36.9％

0Enrichment of products for corporations-470△50
2015 3Q

Individual

2016 3Q

2015 3Q

2016 3Q

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

13

Financial Condition B/S In Real Estate Business, we enhanced the procurement of land for business, andincreased real estate for sale in process.
Total assets(Million yen)

80,00064,58256,32960,00040,000Current
assets・ Increase in cash and deposits
・ Increase in real estate for sale in process

58,21950,402

58,219（+7,817）
3,301 million yen
6,992 million yen

20,00005,927

6,362

End of FY2015

End of FY2016 3Q

Fixed assets(Million yen)

Current assets

Current
liabilities

49,693（+5,261）

・ Increase in short-term debt
・ Increase in long-term debt

Total liabilities/net assets

80,0002,336 million yen
2,621 million yen

64,58260,00056,32940,00032,91320,000035,401
Net assets

14,291

11,519・ Increase in retained earnings

11,897

14,888End of FY2015

End of FY2016 3Q

Net assets

Fixed liabilities

14,888（+2,991)
2,914 million yen

Current liabilities

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14

Ⅱ. FY2016 Business Forecasts

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15

Summary of FY2016 Business Forecast
 It is estimated that sales will grow for the 7th consecutive term and profit will increase
for the 6th consecutive term, marking record highs.

FY2015 actual

FY2016 budget*

Change from forecast
ChangeUnit: Million y en, %Pct. change

100,111 12,127
6,275 1,138
6,153 1,019

Net sales

87,984

Operating income

5,137

Ordinary income

5,133

Net income attributable toowners of parent

3,810

3,814

3

0.1

228.05228.27
68.5

0.2

0.1

22.8

49.9

EPS (y en)
Dividend per share (y en)

45.7

13.8
22.2
19. 9

*Announced on February 3, 2016

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16

Business Forecast by Segment
 All of the 3 core businesses are estimated to increase profit.

FY2015 actual

Unit: Million yen, %Factory Busine ss

Te chnology Busine ss

Human Resources
and Education
Business

R&D Busine ss
Sale s & Marke tingBusine ss
O the rs

T otal (reference)

Real EstateBusinessInformation andTelecommunications
Business

Re al Estate Busine ss

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

Information andNet sales

Telecommunications B usiness

Segment income

Net sales
Total

Elimination or corporate

Operating income

26,910
1,801
9,547
989
4,755
518
3,972
218
491
15
45,677
3,543
31,785
3,061
10,522
4
87,984△1,472
5,137(Profitmargin)(6.7%)(10.4%)(10.9%)(5.5%)(3.2%)(7.8%)(9.6%)(0.0%)(5.8%)FY2016 budget*

32,571
2,316
10,669
952
5,650
565
5,525
29654726
54,963
4,157
37,092
3,921
8,056
200
100,111△2,003
6,275

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Change from forecast
Change

5,661
515
1,121
△36894
47
1,552
77
56
10
9,286
614
5,307860△2,466
195
12,127(―)
1,138

Pct. change

21.0
28.6
11.7
△ 3.7
18.8
9.1
39.1
35.5
11.4
70.3
20.3
17.316.728.1△ 23.4
4,054.5
13.8(―)
22.2*Announced on February 3, 201617Shareholder Returns
From fiscal 2016, we aim to achieve a payout ratio of 30%.
(Yen)

Dividend per share

70.0

68.5

60.0
50.0

45.7

40.0
30.0

23.7

20.0
10.0
0.0

4.33

4.5

4.5

FY2009FY2010FY20118.5

10.0

FY2012FY2013

FY2014FY2015FY2016
forecast*The forecast and dividend estimated are based on the information that the Company has and a certain assumption that is consideredreasonable. There is a possibility that the actual results may largely differ based on various factors.

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For More Information

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

03-3433-6005

E-MAILirinfo＠world-hd.co.jp

URL

http://www.world-hd.co.jp/

No information in this presentation is provided for the purpose of soliciting purchases or sales ofour stock. Furthermore, options, forecasts and other information not based on historical facts
represent our judgments at the time this presentation was prepared. We do not guarantee theaccuracy 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 incurredin association with the information in this presentation.
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