FY2014 Second Quarter Financial Results

August 19, 2014
WORLD HOLDINGS CO., LTD.
JASDAQ (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

1

I. Shifting to a Holding Company System
II. Summary of Financial Results
III. Trends by Business Segment
IV. Shareholder Returns

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2

I. Shifting to a Holding Company System

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3

The Group’s Organizational Structure after Adopting the Holding Company System
Through the three core business of “Human resources and education business”“Real estate business” “Information & telecommunications business,”seek to “Empower people through work.”（株）ワールドインテック
World Intec Co., Ltd.
WORLD INTEC FUKUSHIMA（株）ワールドインテック福島

WORLD HOLDINGS CO., LTD.

CO., LTD

Workerdispatch/Contract work
人材派遣/業務請負

行政受託/人材派遣/業務請負
Administrative/Worker
dispatch/Contract work

WORLD INTEC TAIWAN CO., LTD.
台湾英特科人力（股）公司

Manufacturingpersonnel dispatch (overseas)
製造業人材派遣（海外）GEOGRAPHIC INFORMATION OF
九州地理情報（株）
KYUSHU, INC.

システム開発受託業務等
Entrustedsystem development business, etc.

Advan Co., Ltd.
（株）アドバン

Personalcomputer school operation, etc.
パソコンスクール運営等

DOT International Co., Ltd.
ＤＯＴインターナショナル（株）

臨床試験受託ClinicalResearch Outsourcing business (CRO)World iCity Co., Ltd.
（株）ワールドアイシティ

Condominium,
single-family housing and housing
マンション分譲/戸建住宅分譲事業
business; condominium management business
宅地分譲事業/マンション管理事業(首都(inthe Tokyo metropolitan area)
Condominium business, contract selling business
マンション分譲事業/販売受託事業（東北圏）(in the Tohoku area)

World Wisteria Homes Co., Ltd.
（株）ワールドウィステリアホームズ

Condominium
business (in the Kinki area)
マンション分譲事業（近畿圏）

World Resiselling Co., Ltd.
（株）ワールドレジセリング

Contract selling business
販売受託事業（首都圏）(in
the Tokyo metropolitan area)

Nichimo Real Estate Co, Ltd.
ニチモリアルエステート（株）

Real
estate consulting business
不動産コンサルティング事業

e-support, Inc.
（株）イーサポート

Call
center
コールセンター

Mobile Service Co., Ltd.
（株）モバイルサービス

通信機器販売（auショップ）
Sellingcommunications equipment (au shop)

Network Solution Co., Ltd.
（株）ネットワークソリューション

Sellingcommunications equipment
通信機器販売（ソフトバンク/WILLCOM）(Softbank/WILLCOM)Best IT Business Co., Ltd.
（株）ベストITサービス

Selling office automation equipment andOA機器・通信機器販売
communications equipment

World Residential Co., Ltd.
（株）ワールドレジデンシャル

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Human resourcesand education
business

Real estate businessInformation &telecommunications
business

4

Aim of Transition to World Holdings
By consolidating highly-related businesses, achieve a quicker
understanding of current conditions and management decisions
Role of World Holdings

1Creating new
businesses
and M&As

Finance andhuman
resources

CSR

Branding

Establishment of management and organizational frameworks that allow each businesssegment to be managed in a speedy manner Separating formulation of management strategy and execution of operations to establish an organizationalframework for managing the entire Group.
 Transferring authority to each business and clarifying the allocation of responsibilities.
 Speeding up the management by simplifying the decision-making process and promoting streamlining.
 Increasing independence and competitiveness by stepping up collaboration within each business segment
and placing each business segment on an equal footing.

2

Actively entering new growth fields and making active investments including M&As
 Actively allocating management resources in business fields with growth potential.
 Actively utilizing M&A to launch new businesses agilely and expanding the scale and scope of businesses.

3

Further enhancing corporate value
 Enhancing corporate value by boosting shareholder returns based on sustainable growth of the Group.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved5Description of Segment Changes
By consolidating highly-related businesses, achieve a quicker
understanding of current conditions and management decisions
Former segment

New segment

Factorybusiness

Factorybusiness

Factory businessTechnology
business

Technology
business

Technology business

OthersSales andmarketingbusiness
Others(Formerly other) Contract work in Fukushima+ WORLD INTEC FUKUSHIMA CO., LTD(Formerly other) Construction business + Repair Business+ GEOGRAPHIC INFORMATION OF KYUSHU, INC.

(Formerly other) CB business + OCS business(Formerly other) Advan Co., Ltd., others

R&D business

No Change

Real estate business

No Change

Information & telecommunications business

No Change

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Human resources and education
business

Contract work in Fukushima
WORLD INTEC FUKUSHIMA
CO., LTD
Repair Business
Advan Co., Ltd.
GEOGRAPHIC INFORMATIONOF KYUSHU, INC.
CB, Construction, OCS, others

Contents

6

Impact of of Segment Changes (FY2013)[After segment changes][Before segment changes]

The Others segment has been reorganized
into each segment depending on the contents

Others(Million yen)
6,000(Million yen)W
Fukushima

640 W Fukushima 1,989
1,644

1,643

3,693

7,335

21,015W Fukushima
1,643

4,000

Contract
work inFukushima
632
Repair 193

22,00012,00020,00010,000Contract work in
Fukushima
Geographic
Information of
Kyushu 403

632

18,0008,000

18,7386,000

Repair193

Construction 447

CB
1,931
2,000

4,000
6,424

Construction

447

OCS58

OCS59

Geographic
Information of
Kyushu 403

ADVN
451

0

FY 2013 (full-year)

2,000

3,693

CB
1,931
ADVAN451
Others0
Sales & Marketing

R&D

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

FC7

II. Summary of Financial Results

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8

FY2014 Second Quarter Summary
On a six-month basis, net sales, operating income, ordinary income, and net
income reached record highs.
Operating income, ordinary income, and net income upwardly revised (announced
July 31) due to significant year-on-year increase.
Unit: Million yen, %2013/1Q-2Q
Cumulative total

Net sales
Operating income
Ordinary income
Net income

28,922
1,154
1,184
524

2014/1Q-2Q
Cumulative total

YoY
ChangePct.
Change34,023 5,101
670
1,824
611
1,795
451
976

17.6
58.1
51.6
86.1

FY2014*
1Q-2Q forecast

Comparison
with earnings
forecast

33,298
910
863
342

2.2
100.4
108.1
185.1

Earnings above the initial forecast® Performance significantly exceeded initial forecast due to extremely positive results in thefactory business and real estate business* Announced on February 12, 2014

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

9Trends by Business Segment
Excluding the investment-focused “Others,” net sales
up year on year for all segments
Unit: Million yen, %FY 2013
1Q-2Q total*

Net sales
Segment income

Factory businessProfit m argin
Net sales
Technology business

Segment income
Profit m argin

Hum an resourcesand education
business

Net sales
Segment income

R&D businessProfit m argin
Sales & Marketingbusiness

538

143.1

499

3.9%

7.8%

—

—

4.6%

3,536

613

17.4

4,273

251

4,149
291

40

16.1

329

7.1%

7.0%

—

—

7.7%

1,788
96

1,960
32

10,854

171

9.6

2,024

△64

△ 66.6107△ 32.8

1,212

28

19

3.2%

1.6%

△9

368
48

312
20

△ 55

13.1%

6.5%

5,657

7,252
815

1,594
269

49.3

263

9.7%

11.2%

—

—

3.7%

6,878

513

7.5

7,495

△ 29

△ 11.1
—

3.9%

17.6

33,298—△582

Segment income
Profit m argin
Net sales
Segment income
Profit m argin
Net sales

Total

20.1

Segment income

Profit m argin

Information &telecommunications
business

1,962

376

11,744
915

9,781

1.6%

Net sales

Information &telecommunications
business

Pct. Change

911

Segment income

Real estate businessChangeFY2014
1Q-2Q
forecast*

5.4%

Net sales

Real estatebusiness

YoY

Net sales
Profit m argin

Others

FY 2014
1Q-2Q total

Elimination or corporate

546

264

7,391
235

3.8%

3.2%

28,922

34,023
△505
1,824

△458

Operating income

1,154

Operating m argin

4.0%

5.4%

—

301

△ 28

—

—

5,101

—

5.3%

33.0

1,324

△ 15.1△ 58.3

△7

△0.5%

253
7

—

2.9%

28.2

7,076

△ 47

670

58.1

—

—

295

911

2.7%

* Units less than one million yen rounded down
* The FY2013 results and February 18 forecasts have been reclassified inaccordance with the segment changes.

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10Change in Net Sales by Segment
Sales in the factory business increased 1,962 million yen year on year,
while sales in the real estate business were up 1,594 million yen year on year
(Million yen)

35,000

Despite difficult
recruitment environment,
contribution made by newlarge-scale machinery andlogistics projects

Sales of first
properties in Tohoku
completed,delivery completed

Sales &
Marketingtelecommunications
301
Technology
513
613
Information &

R&D
171

Real Estate

Others△55

1,594
Factory

30,00025,0001,962

Strengthened sales infield including
regenerative medicine

2013
1Q-2Q
cumulative
total

2014
1Q-2Q
cumulative
total

34,02328,922Up 5,101 million yen
20,000

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11Changes in Operating Income by Segment
Operating income significantly higher than previous forecast
The main contributing factors were the acquisition of large orders and cost
improvements in the factory business and strategic sales in the real estate business
Effect of increased earnings
from the sales of first
properties in Tohoku(Million yen)
2,500

Cost improvements as aresult of an increase inprojects with favorable
conditions

Technology
538

2,000

Information &telecommuniOthers
cations

D 28

D 29

R&D
D 64

Real Estate

538

Factory
538

1,500

Cost increase for
new location launch

1,000

500

2013
1Q-2Q
Cumulative
total

1,154

Eliminationor corporate
D 47

Sales &
Marketing
D9

Upfront investment in
human resource
development in the field ofcontracted clinical trials

2014
1Q-2Q
Cumulative
total

1,824

Up 670 million yen

0

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12Financial Condition B/S
Total assets were 34,627 million yen, a 4,060 million yen increase from the end of
the previous year.
Total assets(Million yen)

35,000Current assets

34,62730,56628,00021,00028,157

14,00032,110

2,409

2,516

End of FY2013

End of FY2014 2Q

0

Fixed Assets(Million yen)

7,756 (+1,782) Deposits from real

• Notes and accounts
receivable-trade• Real estate for sale in process:

6,105 (+678)
Increase in sales
15,970 (+1,774) Acquisition of

30,566

34,627

21,944

4,288

5,116

Net assets

6,683

7,566

Fixed liabilities

Current
liabilities

713
(+76)
620
(△35)
1,182 (+66)

21,944 (+2,350)

End of FY2014 2Q
Current liabilities

Net assets

2,073 (+993)
11,428 (+496)

Fund for purchase ofreal estate for sale

5,116(+827)• Long-term debt:

0
End of FY2013• Property, plant and equipment:• Intangible assets:• Investments and other assets:

Fixedliabilities

14,0007,000

commercial premises

2,516 (+107)• Accounts payableReal Estate Business:• Short-term debt:

28,00019,594

estate sales

Current Assets

Total liabilities/net assets

35,00021,000• Cash and deposits:

Fixed assets

7,000

32,110 (+3,953)

4,637 (+749)

Fund for purchaseof real estate for sale

7,566 (+883)• Retained earnings

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4,932 (+807)

13

Cash Flow
Financing CF increased 1,078 million yen, operating CF increased 890
million yen, and investing CF decreased 183 million yen(Million yen)

9,000
8,000
7,000

FinancingCF+1,0786,000

OperatingCF+890

Investing
CF
183

5,000
4,000
3,000
2,000
1,000

Cash andcash
equivalents
at end of
FY2014 2Q
7,756

Cash andcash
equivalents
at beginningof year
5,974

•
•
•
•

Net increase in short-term debt
654
Income from long-term debt
1,820
Repayment of long-term debt  1,227
Dividends paid
 162

•
•
•
•
•
•

Net income before income taxes 1,760
Real estate for sale
 1,775
Trade payables
1,418
Increase in accounts receivable  681
Increase in accrued expenses
427
Payment of income taxes 895

Up ¥1,782 million• Acquisition of tangible fixed assets
 120

0

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14

Summary of FY2014 Business Forecasts
There are no changes from the initial FY2014 business forecasts
Unit: Million yen, %YoY
FY2013 actual

FY2014 forecast
ChangePct. Change

Net sales

56,45070,62014,17025.1

Operating income

2,120

2,680

560

26.4

Ordinary income

2,164

2,571

407

18.8

Net income

834

1,201

367

44.0

EPS (yen)

49.6

71.4

Dividend per share (yen)

10.0

14.3

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15

Business Forecasts by Segment
FY2013
actualUnit: Million yen, %Factory businessProfit margin
Net sales
Human resources andeducation business

R&D business

Segment incom e
Profit margin

Sales & Marketingbusiness

Net sales
Segment incom e
Profit margin
Net sales

OthersSegment incom e
Profit margin
Net sales

Real es tate business

Real estate business

Segment incom e
Profit margin

Information &telecom munications
business

Information &telecommunications
business

Net sales
Segment incom e
Profit margin
Net sales

Total

Elimination or corporate

1,204

150

12.5

5.7%

5.6%

—

—

7,335

8,781
781

1,445

19.7

638

142

22.4

8.7%

8.9%

—

—

3,693

4,447
289

753

20.4

195

94

48.3

5.3%

6.5%

—

—

1,989

3,200

1,210

60.8

50

49

0

2.5%

1.6%

640
52

520
25

△ 119

△ 1.0

8.2%

5.0%

—

8,683

6,334

511

15,017
889

377

73.7

5.9%

5.9%

—

—

13,092

1,396

10.7

441

14,489
489

47

10.8

3.4%

3.4%

—

—

56,45070,620△1,2002,680

14,169

25.1

△ 226

559

26.4

—

—

△973

2,120

Operating incom e
Operating margin

Pct. Change

15.0

Segment incom e

Segment incom e

Change3,148

21,015Net sales

YoY

24,163
1,354

Net sales
Profit margin
Technology business

FY2014
forecast

3.8%

3.8%

△ 26

△ 18.6△ 50.7—73.0－* Units less than one million yen rounded down
* The FY2013 results and February 18 forecasts have been reclassified inaccordance with the segment changes.

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16Trends in Consolidated Earnings
We aim for net sales of 10 billion yen and operating income of 5 billion yen in FY2016(Million yen)

(Million yen)

120,000

6,000

100,000
100,000

5,000

5,000

80,0004,000

60,000

3,000

2,120
40,000

2,000

1,345
20,0000

1,000

2006/12

2007/12

Human resources and education

2008/12

2009/122010/122011/122012/12

Information & telecommunications

2013/12

2014/12 2015/12 2016/12(forecast) (forecast) (forecast)

Real estate

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0Operating income (right scale)17III. Trends by Business Segment(Human resources and education business)

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18

Human Resources and Education Business<<Trends in Worker Dispatching Act* revisions>>

Purpose ofrevision• Expanding use of dispatching at companies
Þ Revitalizing the economy• Stabilizing the position of dispatch workers
Þ Stabilizing employment

Present situation

Proposed revision

If materialized ...

• The maximum period forreceiving fixed-term worker
dispatching ® Three years
or less for the same job• Restrictions based on the 26
special job categories*26 job categories that require high

• The maximum period forreceiving fixed-term worker
dispatching ®Three years orless for the same dispatchedworker• Abolishing the 26 special job
categories
Shifting from the notification
system to the approval andlicensing system• Revitalization of the market• Selection by high quality,
stable companies• Maturation of the industry• *Indefinite-term employment• Reference asset amount：20 million yen´ number of business locations
Cash and deposits: 15 million yen ´number of business locations

levels of expertise and skills(Software developer, machine
designer, interpreter, secretary, etc.)• We recognize the above as
the true intentions of thegovernment and willapproach our operations as
an industry leader

Share expansion and industry selection expected tofurther accelerate* Act for Securing the Proper Operation of Worker Dispatching Undertakings andImproved Working Conditions for Dispatched Workers

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19Human Resources and Education Business<<Macro environment>>
While the number of employees remains constant, there is a high possibility of ashift being made towards a dispatch labor market over the medium to long term
as forms of employment change<<Breakdown of FY2013 nonregular employment>>
Total of 19.06 million people<<Shift from regular to non-regular employment>>
Unit: 10 thousand<<Trends in number of employees by
persons

form of employment>>

6,000
5,000
4,000

138
333
96

127
360
96

128
354
90

82
388
116

87
416
116

1,196

1,229

1,241

1,320

1,351

370

368

368

343

343

Possibility of our target area
expandingComparison of2010 and 2014
Non-regular+ 2.07 million
peopleDispatch employees
1.16 million people

3,000
2,000

3,374 3,352 3,340 3,302 3,223

Regular1.51 million
people(1) Part-time(2) Side job(3) Contract employees
2.73 million people(4) Temporary employees
1.15 million people(5) Other
0.82 million people

1,000
0

2010

2011

2012

2013

Regular employees

Executives

Part time

Dispatch

Contract

Other

9.28 million people
3.92 million people

2014*

Over 50% of non-regular employees do
not want regular employment

Source: Aggregate Results of Annual Business Reports From Worker Dispatch Businesses of the Ministry of Health, Labour and Welfare and the Labour Force
Survey (Basic Totals) of the Ministry of Internal Affairs and Communications Statistics Bureau *The average for January to March used for 2014

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20Factory Business<<Sales composition by business segment and the number of staff>>
New large-scale projects in the fields of machinery and logistics commenced
at the beginning of the fiscal year made large contribution
Sales composition by business segment (%)(Persons)
6,437
7,000

(Million yen)
12,000

6,000

25.3

10,000
8,000

4,000

11.1

2,000

9.8
9.9

1,079

255
784

6,601

6,705

6,842

585

590

602

837

844

766

723

5,059

5,172

5,349

5,517

6,316
420

4,000

8.8

5.4
9.5

5,960

98

5,000

5.7
8.0

34.7

6,000

Transition in the number of staff

9.3

3,000

5,260

13.6

4,921

2,000
1,000

28.8

19.6
0

2013 1Q-2Q cumulative total

Electrical & electronics
Machinery

Logistics
Environment & Energy

2014 1Q-2Q cumulative total
Semiconductors

Automobiles02013 1Q 2013 2Q 2013 3Q 2013 4Q 2014 1Q 2014 2Q
Number of staff

Segment change adjustment

Average other companies/acceptance

Others* The graph indicates domestic sales excluding Taiwan, retroactive
adjustments have been made for segment changes
Refer to the reference data for details on segments other than the above* The number of staff is a three-month average,
and from 2013 4Q, external staff members accepted from other companies are included* For the number of staff, the figures have only been changed for nonclerical workers andretroactive adjustments have been madeCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

21

Factory Business<<Initiatives for the second half and beyond>>
Securing human resources is the top priority
Continuous employment and building stable relationships with clients
Net sales(Million yen)

25,00024,163

Factory

21,01520,00010,0005,000
0(Million yen)

1,500

2014/12(forecast)

Numberof people

Segment income
1,204~ Securing human resources by expanding coverage andreducing resignation ~•Recruitment (increasing recruitment)•Leveraging the further use of job papers, expand active
registrants and expand recruitment through casting•Review of recruitment standards and acceptance systems•Expanded employment of elderly, women, etc.
•Management (reduce number of resignations)•Developing frameworks for employee
education/revitalization

15,0002013/12<<Securing human resources = strengthening recruitment
capabilities and the long-term retention of employees>>

1,354

High

•• New recruitment numbers and retention
period•• Recruitment numbers and retention curve
until now

Low

Company
enrollment
period

1,000
Short

500

<<New segment>>0
2013/12

2014/12(forecast)Contract workin Fukushima

Long• Further creation of employment aimed at thereconstruction of areas affected by the disasters• Expansion of human resource development andplacement for the private sector

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

22Technology Business<<Sales composition by business segment and the number of staff>>

As a result of strengthened recruitment and securing of assignment location, enrollment
in design and development sector has increased significantly since last year
Sales composition by business segment (%)(Persons)(Million yen)
5,000

4,000

1,500

3.9

5.7
5.9
6.0

6.3
5.1
5.9
15.3

2,000

1,000

1,387

1,000

1,331

1,349

1,398

1,429

199

195

207

1,474

243

163

190

429

515

530

567

600

616

715

653

629

632

634

651

2013 2Q

2013 3Q

2013 4Q

2014 1Q

2014 2Q

21.8
24.6

3,000

0

Transition in the number of staff

16.4
500

44.2

42.8

2013 1Q-2Q cumulative total

2014 1Q-2Q cumulative total

Semiconductors

Information Technology &Telecommunications

Construction

Machinery

Automobiles

Others* Retroactive adjustments have been made for segment changes in the graph.
Refer to the reference data for details on segments other than the above0
2013 1Q

Production technology

Design development

Segment adjustments* The number of staff is a three-month average* For the number of staff, the figures have only been changed fornonclerical workers and retroactive adjustments have been madeCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

23

Technology Business<<Initiatives for the second half and beyond>>
Promote the expansion of the scope of business. Strengthen factorycollaboration, design contracting, and repairs
Net sales(Million yen)
10,0008,000<<Strengthen earnings>>
Technology

8,781• Expand collaborative projects between
businesses through collaboration with thefactory business• Expand transactions with highly profitableclients• Development of engineers in collaboration
with Advan

7,335

6,000
4,000
2,000
0
2013/12(Million yen)800

2014/12(forecast)

Product flow<<Design and development,
production technology>>
Field of technology

Segment income

1,000
638

400

0
2013/12

2014/12(forecast)<<Manufacturing>>

FC filed<< New segment>>• Business expansion and strengthened ability to adapt
to changes through the diversification of fields<< New segment>>• Utilize strengths in the third sector to increase orders
from the government and leading local companies• Develop engineers with disabilities through GIS(merchandise)

Repair200

Factory work
Engineering
field

Expanding into further fields
through collaboration↑

781

600

~Expand scope of business through collaboration~

GEOGRAPHICINFORMATION OF
KYUSHU, INC.

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

24

R&D Business<<Sales composition by business segment and the number of staff>>
Underpinned by an increase in demand in the fields of pharmaceutics and biotechnology, orders andrecruitment have both increased, and the number of staff has steadily grown for DOT
Transition in the number of staff

Sales composition by business field (%)(Persons)
800(Million yen)
2,000

553

15.0
1,500

20.2

600

34

606

628

633

41

42

50

55

558

564

578

578

599

676

69

49.0
1,000

46.0

400

519
500

607

200

35.9

33.7
0

2013 2Q
Pharmaceutical /biotechnology

2014 2Q
ChemicalClinical02013 1Q 2013 2Q 2013 3Q 2013 4Q 2014 1Q 2014 2Q
R&D staff

DOT staff* The number of staff is a three-month average* For the number of staff, the figures have only been changed fornonclerical e workers and retroactive adjustments have been madeCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

25

R&D Business<<Initiatives for the second half and beyond>>
Promote the development of clients by leveraging business synergies and develop
human resources for the next fiscal year
Net sales(Million yen)

5,000

R&D

4,447
3,693

4,000

2,000
1,000
0

(Million yen)

2014/12(forecast)

Segment income

500

DOT

400
300
200

289
195

R&D (research
employees)

10002013/12

2014/12(forecast)~Achieve stable recruitment numbers and retention
rates through management and education~• Strengthening employee management andsupport systems(Increase points of contact with employees andimprove their sense of belonging)• Establishing a strategic operating rate
• Starting region-specific full-time employee system• Starting bio-related education and training byincreasing training partner facilities

3,000

2013/12<<Human resources development>>• Preparing for expansion of the contract system
for the next fiscal year by strengthening the
education of recruitees• Developing a contract system clinical researchand global projects

Education

DOT (employees)

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

Acquisition of higher
value-added business

26

Sales and Marketing Business<<Sales composition by business segment and the number of staff>>
Steady recruitment in the OCS business, advancing with the expansion ofbusiness foundations through the establishment of six locations
Sales composition by business segment (%)

Transition in the number of staff(Persons)
1,000
617

(Million yen)
1,500

1,200

19

64
9

725

800

25
900

783

72

910

929

210

308

700

621

600

600

8１

400

100
300

617

649

700

711

200

0

2013 2Q

2014 2QCB

OCS

02013 1Q 2013 2Q 2013 3Q 2013 4Q 2014 1Q 2014 2Q
CB personel

ＯＣＳ* The number of staff is a three-month average* For the number of staff, the figures have only been changed fornonclerical workers and retroactive adjustments have been madeCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

27

Sales and Marketing Business<<Initiatives for the second half and beyond>>

By further strengthening and investing in recruitment, aim to expand businessfoundations and build and strengthen a management system
Net sales(Million yen)

4,000

CB

3,200

3,000

~Expanding recruitment framework and strengthening
management to improve the retention rate~• Strengthening employee management and support
systems (Strengthening contract cancellation timing
shifts and recruitment of unexperienced people)• New registration system running from September

1,989

2,000

<<Building a management system>>

1,000
0
2013/12(Million yen)

2014/12(forecast)

OCS

Segment income

100• Expanding recruitment through trend analysis foreach location• Optimizing assignments of registrants and staff andimproving operating rate
(Recruitment of people with industry experience)

80
60

50

49

40
20
0
2013/12

2014/12(forecast)

People withexperience
People without
experience(New recruitment
framework)

Management

Education

Managers(Recruitment ofpeople withindustry
experience)

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

Optimalplacement

Clients

28

III. Trends by Business Segment(Real estate business)

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

29Real Estate Business<<Macro environment>>
While there were many positive elements including policy-based purchasing
appetite, there were also concerns towards price increases

Background
Consumer sentiment• Increase in purchasing
appetite• Last-minute rise in demand
before the increase in the
consumption tax• Concerns towards high-risingproperty prices

Economic recovery
triggered by economic
policy• Increase in base salaries• Continued low interest
rates• Consumption tax hike
• Special reconstruction
demand, etc.

Supplier sentiment• Strong sales conditions• Decrease in sales
inventories• Decrease in new supply• High-rising construction
costs

While near-term macro economic environment has been positive, the situation is
not perfect
Being able to flexibly respond to the market environment will be a strength

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30Real Estate Business<<Status of activities>>
Promoting procurement in consideration of business profitability and flexible
response in line with the market environment
In-housedeveloped
Purchasesituation

Toky o metropolitan
area

Tohoku area
Total

SupplyDeliverysituation

Contract
selling

DetatchedhousesBrokerage

6 properties
1 property
7 properties

Toky o metropolitan
area

39 properties

Tohoku area

38 properties

Total

77 properties

Toky o metropolitan
area

38 properties

Tohoku area

54 properties

103 properties

Total

92 properties

103 properties

1 lot

In-house developed

Current
status(Jan toJune)*

Subdivisions

9 properties

213 Properties(household
equivalent)

8 cases
1 lot

9 properties

Contract selling

8 cases

Brokerage

Current year

Next year

Current year

Next year

Current year

Next year

Toky o metropolitan
area

80 properties

74 properties

13 properties

7 properties

Tohoku area

13 properties

9 properties

56 properties

0

11 cases0

Total

93 properties

83 properties

69 properties

7 properties

11 cases

0263 Properties(household
equivalent)* Includes properties to be completed during the next fiscal year and beyond and joint ventures

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

31Real Estate BusinessCondominiums to be supplied in the Tokyo metropolitan area (World Residential)
FY 2014

2 projects / 73 units

5 projects / 352 units

Residential Monzen-nakacho
East

FY2015

Arai Yakushi-mae Project
Nakano-ku, Tokyo (37 units)

Koto-ku, Tokyo (28 units)

Shinagawa Nakanobu II
Project

Shinagawa-ku, Tokyo (52 units)

Toyocho Project

Koto-ku, Tokyo (107 units)

Ichinoe Project

Edogawa-ku, Tokyo (97 units)

Branz Yokohama
Bashamichi Residential

Residential Tsunashima

Kohoku-ku, Yokohama (45 units)(joint project)Naka-ku, Yokohama(130 units)(59 units)

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

32Real Estate Business
Properties to be supplied in Tohoku area (World iCity)FY 2014

2 projects (126 units)

2 projects (271 units)

Residential Minami Sendai

FY2015Residential Aoyama
EkimaeTaihaku-ku, Sendai City (54 units)

Aoyama, Morioka City (38 units)
Aomori Pref.

Akita
Pref.
Iwate Pref.

Yamagata
Pref.

Residential Kaiseizan Koen
Koriyama City, Fukushima Pref.
(72 units)

Miyagi Pref.

Asuto Nagamachi Project
Sendai City Reconstruction
Public Housing

Taihaku-ku, Sendai City (70 units)

Taihaku-ku, Sendai City (163 units)

Fukushima Pref.

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

33Real Estate Business
Properties to be supplied in Kinki area (World Wisteria Homes)
2 projects (100 units)

FY2015

Toyonaka Project

Toyonaka City, Osaka Pref. (67 units)

Second half of FY2014
Sales startMoriguchi Project

Moriguchi City, Osaka Pref.
(33 units)

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

34Real Estate Business<<Initiatives for the second half and beyond>>
Flexible response to changes in the market environment
Net sales(Million yen)
18,00015,017

15,00012,0009,000

Tokyo
metropolitan
area• Diversification of the business portfolio®Condominiums, single-family housing,housing lot for sale, other• Strengthening of contract selling properties• Start of renovation businessTohoku area

• Business development of the six prefectures in
the Tohoku area
• Strengthening of contract selling properties• Advance acquisition of land

8,643

6,000
3,000
0

2013/12(Million yen)

2014/12(forecast)

Segment income

1,000

889

800
600

Kinki area

• Promoting the commercialization of 2PJ• Building a sales system

Overallmeasures

511

400
200
0
2013/12

2014/12(forecast)Prioritizing
profits• Building CM* system• Specification based on targets

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved*CM: construction management35III. Trends by Business Segment(Information & telecommunications business)

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved36

Information & Telecommunications Business<<Macro environment>>
The market environment will intensify going forward due to policy and carrierprospects, and according quality and capital strength will be critical

Background

PolicyCurrent situation• Promotion of competition
through the freeselection ofmobile phones• Elimination of SIM locks Market saturation and a decrease in the number ofunits sold
The Group's trends
This situation is the samefor other companies

Carrier• High demand for quality
improvement by dealers• Working to be the branch
selected by customers

Sep.
2013

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

 Only companies with capital strength will be able tosupport large-scale store expansion(1) Store renovation costs(2) Upfront investment for matters such as humanresource development expenses are necessary

Capital strength is a key point for share expansion and survival in theindustry
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved37

Information & Telecommunications Business<<Initiatives for the second half and beyond>>
Concentrate on core merchandise and expand through aggressive investments in an
aim to gain the benefits of being a survivor in the Kyushu region
Net sales
16,00013,092• Strengthening of sales systems and customer support• Focusing on OA solutions and LED lighting• Commencing solutions by industry

Corporate

14,48912,0008,000

Individuals

4,000• Focusing on mobile phone-related products• Strengthening acquisition of Internet connection• Strengthening relationships with agencies• Acquiring outstanding dealer certification0
2013/12

2014/12(forecast)

Segment income
600
500

441

489

400

Clarify core merchandise while aim toachieve further:Strengthening of
earnings base

• Strengthening human resource development• Making aggressive capital investment in store
openings, relocations, renovations, etc.

Building the best store network in the region[Combine the corporate division with the existing store network to service the region
in full rather than as a sales point]

300
200

Necessary to improve the quality of employees

10002013/12

2014/12(forecast)

Corporate
division(Head Office)Existing store
network(161 stores in the
Kyushu region)

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

Development
and staffing

Employeeeducation

38

IV. Shareholder Returns

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

39

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

15.0 (yen)

14.3

10.0

10.0

8.5

5.0

4.5

4.5

4.5

2009/122010/122011/120.0
2012/12

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

2013/12

2014/12 (forecast)40

Reference

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

41World Intec Group: Three Core Businesses
Seek to “Empower people through work” through the three core businesses.
Human resources andeducation business

Real estate businessInformation &telecommunications businessConnect people with work
New work styleConnect people with housing
New style of urban development

Bring people together
New style of communication

World Intec Co., Ltd
World Intec Co., Ltd
 Factory business: Manufacturing dispatch ·Contract work
 Technology business: Dispatch ofengineers
 R&D business: Dispatch of researchers
 OCS business: Dispatch of clerical workers
 CB business: Dispatch of sales personnel
 Construction business: Dispatch of
construction managing engineers Administrative contract business: Human
resource development
 Overseas business: Parts procurement andpurchasing Repair Business: Entrust equipment repair

WORLD INTEC FUKUSHIMA
CO., LTDWORLD INTEC FUKUSHIMA CO., LTD
 Administrative contract businessWORLD INTEC TAIWAN
CO., LTD.

GEOGRAPHIC INFORMATIONOF KYUSHU, INC.
GEOGRAPHIC INFORMATION OF KYUSHU,
INC.
 Map information • Entrusted systemdevelopment • Disabled persons’
employment support • Education business

Advan Co., Ltd.
Advan Co., Ltd.
 PC school operations business,
educational materials, software sales
business

World Residential Co., Ltd.
World Residential Co., Ltd.
 Condominium business (Tokyo
Metropolitan area)
 Condominium management business Contract selling business

World Resiselling Co., Ltd.
World Resiselling Co., Ltd.
 Selling agency
 Contract selling business

World iCity Co., Ltd.
DOT International Co., Ltd.
 Clinical Research Outsourcing business(CRO)

World iCity Co., Ltd.
 Condominium business (Tohoku area) Selling agency
 Contract selling business

World Wisteria Homes Co.,Ltd.

WORLD INTEC TAIWAN CO., LTD.
 Staff placement and worker dispatching
services for the manufacturing sector

World Wisteria Homes Co., Ltd.
 Condominium business (Kinki area) Selling agency

WORLD INTEC SHANGHAICO., LTD.

Nichimo Real Estate Co, Ltd.

WORLD INTEC SHANGHAI CO., LTD.
(non-consolidated) Staff placement, consulting and education
business

Nichimo Real Estate Co, Ltd.
 Real estate loan consulting business Contract selling business

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

e-support, Inc.
 Call center business Insurance businessNetwork Solution Co., Ltd.
 Softbank business Y! mobile business

Mobile Service Co., Ltd.
 KDDI businessBest IT Business Co., Ltd.
Best IT Business Co., Ltd.
 Corporate business42

Our Business Models and Business Segments
Worker dispatch
General worker dispatching

Specified worker dispatching

Businesssegment

Worker dispatching underwhich worker are
dispatched as those otherthan specified workers

Worker dispatching underwhich only regularlyemployed workers aredispatched (26 special job
categories)

Factorybusiness

Dispatch of
manufacturers

Technology
business

Dispatch of production
technology engineers

R&D
business

Dispatch of research
assistants

Sales andmarketingbusiness

Dispatch of sales personnel
and clerical workers

Contract work
Contract works whose goal
are the completion of work
(Article 623 of the Civil
Code)
Remuneration is paid notfor hours worked, but fordeliverables.
Manufacturing andlogistics contracting
Administrative(World Intec Fukushima)

Dispatch of design development
engineers
Dispatch of construction
managing engineers (construction
business)

Dispatch of researchers
Dispatch of clinicaldevelopment staff

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

Production technology
contracting
SI / Development
contracting

Clinical contracting(DOT International)

43

Trends in Sales of Factory Business by Region and Industry Sector

Factory business*[Percentage of sales by region]
2014/2Q
2013/2Q

KyushuChugoku

25.0
28.6

21.1
24.0

[Number of staff]
Kansai

6.7
6.5

Tokai

Kanto

4.4
4.0

26.3
16.2

TohokuJapan

16.5 2014/2Q
20.7 2013/2Q

6,594
5,752

Taiwan

248
208

Total

6,842
5,960

[Percentage of sales by business category]

2014/2Q
2013/2Q

Electrical &electronics

Logistics

Semiconductor

Automobile

MachineryEnv ironmental
energy

28.8
19.6

13.6
9.9

9.3
9.8

8.8
11.1

8.0
9.5

5.7
5.4

ChemicalFood/consumables

Precisionequipment

2.9
3.9

2.8
5.0

1.8
2.4

Others

18.3
23.4* The FY2012 results have been reclassified in accordance with the segment changes(domestic totals only excluding Taiwan).

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

44Trends in Sales of Technology Business by Region and Industry Sector

Technology business*[Percentage of sales by region]

Kyushu[Number of staff]

ChugokuKansai

Tokai

Kanto

Japan

Tohoku2014/2Q

32.8

20.5

17.4

3.1

23.8

2.2 2014/2Q

1,474

2013/2Q

35.2

23.4

13.2

2.6

19.9

5.7

1,331

2013/2Q[Percentage of sales by business category]
Semiconductor

Inf ormation &telecommunications

Construction

Machinery

Automobile

Electrical &electronics

2014/2Q

44.2

16.4

6.0

5.9

5.7

4.5

4.0

3.0

10.3

2013/2Q

42.8

15.3

5.9

5.1

6.3

3.7

4.1

1.1

15.7

Env ironmental
energyRepairOthers* The FY2012 results have been reclassified in accordance with the segment changes.

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

45

Corporate Profile

CompanyWORLD HOLDINGS CO., LTD.

Head Office

6F Fukuoka Asahi Building, 2-1-1 Hakata-Ekimae, Hakata Ward, Fukuoka Prefecture

EstablishedFebruary 12, 1993

CEO

Eikichi Iida

Main Businesses

Formulation of management strategy and corporate planning

Capital¥701 million (as of December 31, 2013)

Workforce

10,578 (consolidated/ as of July 31, 2013)

Businesssubsidiaries

14 consolidated subsidiaries, one non-consolidated subsidy, one affiliate(consolidated/ as of July 1, 2014)

Listed Date

February 9, 2005 (JASDAQ Stock Exchange / Stock Code 2429)

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

46

For more information

Yukari Tsuda
Public Relations and Investor Relations Department
Corporate Planning Division
WORLD HOLDINGS CO., LTD.

TEL
E-MAILURL

03-6895-0105
irinfo＠world-hd.co.jp
http://www.world-hd.co.jp/

No information in this presentation is provided for the purpose of soliciting purchases orsales of World Intec stock. Furthermore, opinions, forecasts and other information notbased on historical facts represent the judgments of World Intec at the time thispresentation was prepared. World Intec does not guarantee the accuracy of thisinformation and may revise this information at any time without prior notice. World Intecand other providers of this information assume no responsibility whatsoever for any losses
incurred in association with the information in this presentation.

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

47