FY2015 Third Quarter Financial Results

November 9, 2015 (Mon.)WORLD HOLDINGS CO., LTD.
JASDAQ (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Intensive Measures in 2015 and Their Progress
Human resources and education businesses

Investment concentrated on recruitment

Shared measures
Factory business

Expansion of the
distribution sector

Rationalization of contract
conditions, etc.

Creation of new employment
opportunities

Technology business

Expansion of thebusiness field

Personnel development

Further investment in the
repair section

R&D business

To receive more orders forclinical trials from companies

Expansion of the PV
business

To receive more orders forclinical researches

Sales & marketingbusiness

Expansion of thebusiness field

Optimal utilization ofregistered personnelInternal expansion ofdispersed transactions

Real estate business
Further distribution of portfolios

Start of the sale of the first real estate in
the Kinki region

Nationwide promotion

Information and telecommunications businesses

Differentiation from competitors

To stop depending on the sale ofcell phones

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

To sell more cell phones

1

I. Summary of FY2015 Third Quarter Financial Results
II. FY2015 Business Forecasts

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

2

I. Summary of FY2015 Third Quarter Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved3

Third Quarter Summary
 Sales, operating income, ordinary income, and net income reached the record high.
 In the third quarter of FY2015, operating income, ordinary income, and net income have alreadyexceeded the full-year budget for FY2015.
 Quarterly financial results indicate that sales and operating income have increased for 6 consecutive
terms.
Unit: Million yen, %FY2014/3Q
actual

FY2015/3Q
actualYoY
ChangePct. Change

Full-year
forecast*

Ratio to fullyear forecast

Net sales

49,81569,736 19,920

40.0

87,752

79.5

Operating income

2,627

4,943

2,315

88.1

4,700

105.2

Ordinary income

2,595

4,912

2,316

89.3

4,624

106.2

Net income

1,202

3,556

2,353

195.7

3,445

103.2

*Announced on May 7, 2015

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4Sales by Business Segment
 Significant increase in sales and profit for human resources and education business and real estatebusiness.
FY2014/3Q
actual*Unit:
Million yen, %単位：百万円、％Net sales

Factory business

Segment income
Prof it margin
Net sales

Technology business

Segment income
Prof it marginHuman
resources andeducationbusiness

Net sales

R&D business

Segment income
Prof it margin
Net sales

Sales & Marketingbusiness

Segment income
Prof it margin
Net sales

OthersSegment income
Prof it margin
Net sales

Real estatebusiness
Information &telecommunications
business

Real estate business

Segment income
Prof it margin

Inform ation &telecom m unications
business

Net sales
Segment income
Prof it margin
Net sales
Elimination or corporate

Total

Operating income
Operating margin

YoY

FY2015/3Q
actualChangePct.
ChangeFull-year
forecast for
4Q of fiscal
2015

Ratio to fullyear forecast

19,860
1,324

1,643

9.0

28,597

69.4

1,432

60.3

6.7%

－

－

7.7%

6,282

12.6

9,260

－
76.4

494

7,075
775

△ 7.5

2,196

7.9%

△107
280

56.6

769

100.7

7.9%

11.0%

－

－

8.3%

2,945

16.9

4,850

－
71.0

52

3,442
362

496
309

591.4

447

80.9

1.8%

10.5%

－

－

9.2%

1,898

45.5

4,100

－
67.4

38

2,762
153

863
114

296.7

169

90.8

2.0%

5.5%

－

－

4.1%

444

△99
△8

△ 22.3△ 41.8

636

－
54.2

18

65.9

－

2.9%

167.6

29,321

－
93.9

2,265

197.7

2,557

133.5
－
79.3

18,217

21

344
12

4.7%

3.5%

10,291

27,535
3,412

1,146

793

－

17,244

11.1%

12.4%

－

－

8.7%

9,736
2.5%

－

49,81569,736△1,0494,943△1,021△294△ 10.5△ 119.0

10,987

247

8,714
△47

△244
2,315

88.1

△805
2,627
5.3%

7.1%

－

19,920－

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2

－

－

－

40.0

87,752

－
79.5

30.3

△1,459
4,700

－

－
105.2

5.4%
－
*Announced on May 7, 2015

5

Factory Business<< Sales composition by business segment and the number of staff>>The brand as a top company attracted various requests fromvarious enterprises, and so sales have been healthy.
The electric, electronic, and semiconductor segments havebeen growing, thanks to the favorable performance ofsmartphone- and car electronics-related businesses.

Sales composition by business segment (%)(Million yen)

17,96020,000

22.3%
3.0%
5.7%
9.0%
9.3%
14.0%

15,00010,000

Factory・Customer situation ・・・・・・The number of customers is increasing. (up 15.7% from

13.6%

5,000

23.1%

the same period of the previous year)

02014 3Q

Electrical & electronics
Automobiles

・No. of back orders: over 1,000

19,626

YoY(Based on monetaryamount)

18.3%
5.0%
5.8%
7.1%
10.9%

＋81.7％＋10.7％－13.4％＋27.8％

12.9%

＋0.3％

15.2%

＋22.3％

24.8%＋17.4％

2015 3Q

Logistics
Environment & Energy

Machinery
Chemicals

Semiconductors
Others* The graph indicates domestic sales excluding Taiwan.

・Ratio of undertaking: Expanding with over 50% (up 9.3% from the same period of
the previous year)

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

10,000・Recruitment situation ・・・The number of workers has increased, but it is still not
sufficient. The number of workers registered via “JOB PAPER(http://www.jobpaper.net/)” has increased.

7,674 8,153
7,278 7,698 7,768

8,000

6,887 7,121

994
718

1,263
717

1,370
662

1,211

6,000

885
723

1,566

776
766

624

674

5,345

5,513

5,566

5,718

5,736

5,839

5,913

Logistics section

4,000

・ Customer situation ・・・・・Thanks to the 2-year accumulation of know how andexperience, we received large-scale orders.
Increase of new job vacancies in cooperation with the OCS section

2,000
0

2014 1Q 2014 2Q 2014 3Q 2014 4Q 2015 1Q 2015 2Q 2015 3Q

Number of staff

Segment change adjustment

Average other companies/acceptance* The number of staff is a three-month average, external staff members accepted from other companies areincluded.
* Number of staff includes only staff members who are engaged in on-site operational work.

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6Technology Business<< Sales composition by business segment and the number of staff >>Design and development engineers have increased in theinformation & telecommunications, electric/electronic, andautomobile fields.
Production technology engineers have increased considerably
in the semiconductor field.

Sales composition by business segment (%)(Million yen)

8,000

6,282
6,000

21.2%
5.7%
5.8%
6.0%
16.3%

4,000

Design and development
・Customer situation: Through negotiations, we increased business
partners with favorable conditions (improving costs).

・Recruitment situation: Recruitment of personnel a few years after
graduation and personnel development through team dispatch

Production technology

2,000

45.0%

0

2014 3Q

Semiconductors

7,075

YoY
(Based on monetaryamount)

20.2%
5.2%
5.6%
6.6%
15.6%

＋2.7%
＋8.3％
＋23.4％
＋8.2％

46.8%

＋17.2％

2015 3Q

Information & Telecommunications

Constructions

Automobiles

Machinery

Others* Retroactive adjustments have been made for segment changes in the graph.

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

・ Customer situation: In cooperation with the factory section, we increased
customers mainly in the semiconductor field.

2,000
1,500

・Recruitment situation: The number of employees increased steadily (up115 from the same period of the previous year).

Repair section

1,000

1,552
1,425 1,470 1,500
191

203

213

215

217

600

616

628

658

658

634

651

659

679

694

500

・ Customer situation: Steady sales in the busy season for the repair of abroad range of home appliances

・ Expansion of target fields: Prior investment in skill improvement training
for acquiring new customers in cooperation with the distribution section

1,569

1,697 1,688
219

216

701

698

777

774

0
2014 1Q 2014 2Q 2014 3Q 2014 4Q 2015 1Q 2015 2Q 2015 3Q
Production technology

Design development

Segment change adjustment* The number of staff is a three-month average.
* Number of staff includes only staff members who are engaged in on-site operational work.

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7

R&D Business<< Sales composition by business segment and the number of staff >>

Recruitment of personnel a few years after graduation, andpersonnel with expertise, for meeting the increased demand inchemical and pharmaceutical fields
DOT International received clinical trials for large companies
from pharmaceutical companies.

Sales composition by business segment (%)(Million yen)・ Customer situation: Growth of sales due to the favorable results in thechemical field
Also for PV*, we increased business partners based on collaboration.
・ Recruitment situation: Improvement in recruitment by revising methods widelyfrom various aspects
Increase of new employees, due to the recruitment of personnel a few years
after graduation (who joined our company in Sep.) (up 600% from the same
period of the previous year)
The number of new graduates employed increased considerably (up 160% fromthe same period of the previous year).

DOT・ Customer situation: We have undertaken clinical trials for large companies
since the beginning of the term.
The number of entrusted clinical researches is increasing(up about 20 times from last year).
・ Recruitment situation: OJT-based personnel development, including theincrease of skilled workers, accompanying workers to hospitals, andutilization of assistant staff

YoY(Based on monetaryamount)23.6％＋104.3％

45.9％

41.9％

＋6.7％

40.6％

34.5％

－0.7％

2,945

3,000

13.5％

2,000

R&D

3,442

4,000

1,000
0

2014 3Q
Pharmaceutical/biotechnology

2015 3Q
ChemicalClinicalVariation in the number of staff (3-month average)(Persons)

900

633
600

55

300

578

0

671

686

666

69

70

68

69

607

601

618

597

676

730

745

75

78

655

667

2014 1Q 2014 2Q 2014 3Q 2014 4Q 2015 1Q 2015 2Q 2015 3Q
R&D staff

DOT staff

 The number of staff is a three-month average. Number of staff includes only staff members who are engaged
in on-site operational work.
* PV＝Abbreviation of Pharmacovigilance
To appropriately and swiftly collect and analyze safety information, such as the side effects of pharmaceuticalproducts.

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Sales and Marketing Business<< Sales composition by business segment and the number of staff >>CB (dispatching sales staff) business: Considerable
improvement in profit due to strategic increase of business
partners and index management
OCS (dispatching operators to places such as call centers)
business: Steady growth through large transactions

Sales composition by business segment (%)(Million yen)

2,762

3,000
2,500

1,898

2,000

1,000

・ Customer situation: Expansion of our business fields, including thedirect contracts with department stores and mass retailers

39.9%＋158.8％60.1%＋12.6％

22.4%

1,500

CB

YoY
(Based on
monetary amount)

77.6%

500
0

2014 3Q

CB

OCS

2015 3Q

・ Recruitment situation: As customers have changed, employment
opportunities are increasing.
Variation in the number of staff (3-month average)

OCS(Persons)

1,500

・Customer situation: The number of customers is increasing steadily.
(The number of transactions increased 44.5% from the same periodof the previous year.)・Recruitment situation: Both the number of registrations and thenumber of recruitments have been healthy.
・System development: We are increasing and training proper staff
who can deal with large projects.

1,000

500

0

1,007

910

929

210

308

388

621

619

700

1,174 1,248
467

560

707

688

1,336
616

720

1,460
695

765

2014 1Q 2014 2Q 2014 3Q 2014 4Q 2015 1Q 2015 2Q 2015 3Q
CB

OCS* The number of staff is a three-month average.
* Number of staff includes only staff members who are engaged in on-site operational work.

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9Real Estate Business 1<< Sales composition by business segment and the numbers of units supplied and to be transferred>>The first real estate in the Kinki region to be transferred.
“Branz Yokohama-bashamichi Residential,” which is the joint
project with a leading real estate developer, received the Good
Design Award.
Entry to the prefabricated house and rental business fields
through M&A

Sales composition by business segment (%)(Million yen)

27,53530,000＋1,509.6％

20.8%

20,000Renovation-related

3.4%

10,291

10,000Situation of activities

YoY(Based on monetaryamount)79.2%＋119.6％

96.6%

・ Procurement: 17 pieces of real estate (12 pieces in the Tokyo Metropolitan

0Area, 4 pieces in the Tohoku region, and 1 piece in the Kinki region)・ Supply: 129 units (52 units in the Tokyo Metropolitan Area, 44 units in the
Tohoku region, and 33 units in the Kinki region)・ Transfer: Apartments: 300.4 units (104.4 units in the Tokyo Metropolitan Area,
184 units in the Tohoku region, and 12 units in the Kinki region ）Lot sale: 1 lot (in the Tokyo Metropolitan Area)
Brokerage: 17 pieces (7 pieces in the Tokyo Metropolitan Area, and10 pieces in the Tohoku region)
Land: 7 pieces (in the Tokyo Metropolitan Area)【 Advantages in procurement 】

2014 3Q

Numbers of supplied and un-transferred properties(No. of properties)400

307.9 318.45 314

300
203.9
189

200
128

100
0

Original marketing

Un-transferred properties

Supplied properties

24

106
73
33

92
92

188

182

130.45

132

158.9
151

93
96

132

175.9

158.9
79.9

2014 3Q 2014 4Q 2015 1Q 2015 2Q 2015 3Q 2014 3Q 2014 4Q 2015 1Q 2015 2Q 2015 3Q

Sale of newly built houses

Adjustment of entitlements

Renovation-rerated* Renovation is newly included from the 4Q of FY2014, in association with acquiring Mikuni Sangyo Co., Ltd.
as a subsidiary.

104

Land coordination

2015 3Q

Development-related

Detached houses

Renovation* The supplied properties were included at the time when their sales began. The un-transferred properties
include the already-contracted ones. For JV projects, proportionally distributed number was used.

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10Real Estate Business 2
Acquisition of the shares of Ohmachi Co., Ltd. and Unitex Co., Ltd.
In order to start “rental business” for the purpose of expanding our real estate business field, we acquired the shares of Ohmachi Co.,
Ltd., which had the 27-year history of producing and selling prefabricated houses, and Unitex Co., Ltd., which rents prefabricatedhouses. We will make efforts to respond to the growth of demand for infrastructure, including the “Olympic demand.”《Expansion of our business fields》
Development

Renovation

Prefabricated house business (unstable income)• Production of prefabricated houses• Sale of prefabricated houses

Real estate businessPrefabricated house

RentalRental business (stable income)

There is growth potential inside and outside Japan, due to the demand arisingout of “National Resilience Plan,” “Tokyo Olympics 2020,” simple-frame storesand houses in Southeast Asian countries, which are growing rapidly.

• Rental of prefabricated houses● Outline of Ohmachi Co., Ltd.

● Outline of Unitex Co., Ltd.

Business
content
Date ofestablishment

Business
content
Date ofestablishment

Production and sale of prefabricated houses
Nov. 4, 2008
(The prefabricated house business was started in Aug. 1988.)

Rental of prefabricated houses, and sale of usedprefabricated houses
Aug. 29, 2001

Original products
These prefabricated houses can be
doubled or tripled in size at the timeof installation, and the folding
method for easy setting was
adopted. There are no competitorsthat use this folding method, and so
we have a competitive advantage
in transportation cost.

SP-2

SP-2W

Double-sizedhouse(5.5 tsubo)

Double-sizedhouse(5.5 tsubo)

SP-3
Triple-sizedhouse(8.2 tsubo)

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SP-3W
Triple-sizedhouse(8.2 tsubo)

11

Information & Telecommunications Business<<Variations in sales and the number of stores>> In the middle of industrial restructuring, we dismantled
and rebuilt stores strategically, and prepared for future
expansion.
 We cultivate new needs with the original shop
“Window for Cell Phones.”

Sales for each target[Million yen]
YoY
(Based on monetaryamount)12,00010,000

9,736
8,714

9.5%

9.1%

－14.4％

90.9%－10.1％

8,000
6,000

For individuals

4,000

・ Cell phone shops: To enhance scrapping & building

90.5%

2,000

To close unprofitable shops systematically0・ Development of new business models (Window for Cell Phones)
・ Provision of information on how to utilize cell phones
・ Purchase and sale of used cell phones
・ Planning of the sale of products of MVNO*

2014 3Q

2015 3Q
Individual

Corporation

For corporations
・We enhanced the sale of LEDs, OA devices, etc. to corporations.
The sales volume of LEDs increased 364% from the same period of
the previous year.
・Market environment: Fluorescent and incandescent lamps are to bediscontinued in 2017. All lamps will be replaced by LEDs.
*MVNO＝Abbreviation of Mobile Virtual Network Operator
Operators that rent the lines for mobile communications, and offer their services as their brands

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12Changes in Operating Income by Segment
HR/Education
business(Million yen)

4,000

Other
12

4,000

3,500

S&M
38

S&M
153

3,500

3,000

R&D
52

2,000
1,500
1,000
500

2,628

Up 28.8%
R&D 3622,039
Technology

494Technology

Factory

1,432

775

4,000

3,412

1,324
2015 3Q

3,500

3,000

3,000

2,500

2,500

2,000
1,500

Up 197.7%

2,000
1,500

1,146

1,000

1,000

500

500

0

0

Factory0

2014 3Q(Million yen)

(Million yen)

Other
21

2,500

Information &Telecommunications business

Real estate business

247
△47

2014 3Q

2015 3Q

2014 3Q

2015 3Q

2014 3Q

2015 3Q(500)

Units less than one million yen rounded down
S&M: Sales and Marketing

百万円未満切り捨て
S&M：セールス＆マーケティング

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13

Financial Condition B/S Total assets increased by 3,258 million yen, mainly because of the acquisition of real estate for sale
(3,016 million yen increase).
Total assets(Million yen)

60,00045,00049,34546,087

Current
assets43,948 (+2,342)

・Increase in real estate for sale:
30,00041,60643,948

4,480

5,397

End of FY2014

End of FY2015 3Q

3,016 million yen

15,000
0

Fixed assets

60,00045,00030,00015,000046,08729,032・ Increase in short-term debt for the purchase of real estate for sale:
4,320 million yen

49,345・ Decrease in accounts payable for realty businesses:

29,799・ Decrease in long-term debt for the purchase of real estate for sale:-952 million yen
Net assets

7,862

8,627

11,683End of FY2014

End of FY2015 3Q

Fixed liabilities-1,412 million yen

11,683 (+3,256)• Increase in retained earnings:

8,426
Net assets

37,662 (+1)

Current assets

Total liabilities/net
assets(Million yen)

Liabilities

3,162 million yen

Current liabilities

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14II. FY2015 Business Forecasts

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15

Summary of FY2015 Business Forecasts
 Both operating income and ordinary income will significantly exceed the original forecast.
 Both sales and each profit will mark the record high.

FY2014 actual
Unit: Million yen, %Net sales

68,829Operating income

3,748

Ordinary income

3,722

Net income

1,992

EPS (yen)

118.5

Dividend per share (yen)23.7

FY2015
Forecast*

Change from forecast
ChangePct. Change

87,752 18,922
951
4,700
901
4,624
3,445 1,453

27.5

206.21
41.3

25.4
24.2
73.0

87.7

-

17.6

-

* Announced on May 7, 2015

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16

Business Forecasts by Segment
Unit: Million yen, %24,928Net sales

Factory business

Segment income

1,918

Profit margin

7.7%
8,430

Net sales

Technology business

Human
ResourcesandEducationbusiness

Segment income
Profit margin
Net sales

R&D business

Segment income
Profit margin

Sales & Marketingbusiness

Net sales
Segment income
Profit margin
Net sales

OthersSegment income
Profit margin

RealEstatebusiness
Information &Telecommuni
cationsbusiness

Net sales

Real estate business

Segment income
Profit margin

Information &Telecommunication
business

Net sales
Segment income
Profit margin
Net sales

Total

FY2015
forecast*

FY2014
actualElimination or corporate

Operating income

Operating margin

699
8.3%
4,062
159
3.9%
2,679
72
2.7%
574
18
3.2%
15,545
1,869
12.0%
12,608172
1.4%
68,829△1,162
3,748
5.4%

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Change f rom f orecast

Change28,597
2,196
7.7%
9,260
769
8.3%
4,850
447
9.2%
4,100
169
4.1%
636
18
2.9%
29,321
2,557
8.7%
10,9872
0.0%
87,752△1,4594,700
5.4%

Pct. Change

3,668

14.7

277

14.5

－

－

830

9.8

70

10.1

－

－

787

19.4

287

179.9

－

－

1,420

53.0

96

131.6

－

－

61

10.7

0

2.8

－

－

13,775

88.6

687

36.8

－

－

△1,621△ 12.9△170△ 98.8

－

－

951

25.4

－

－

－

18,922－

27.5* Announced on May 7, 201517

Shareholder Returns
Maintaining dividend increase in line with profit growth
Dividend per share

(Yen)

45.0

* 41.3

40.0
35.0
30.0
23.7

25.0
20.0
15.0
8.5

10.0
5.0
0.0

4.5

4.5

4.5

FY2009FY2010FY2011FY201210.0

FY2013

FY2014FY2015
forecast*Announced on May 7, 2015
*The forecast and dividend estimates are based on the information that the Company currently has and a certain assumption thatis considered reasonable. There is a possibility that the actual results may largely differ based on various factors.

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18

For more information

Yukari Tsuda
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 of our stock.
Furthermore, opinions, forecasts and other information not based on historical facts represent ourjudgments at the time this presentation was prepared. We do not guarantee the accuracy of thisinformation and may revise this information at any time without prior notice. We and other providers of thisinformation assume no responsibility whatsoever for any losses incurred in association with theinformation in this presentation.

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19