Consolidated Financial Results for 2021
[Japanese GAAP]
February 9, 2022

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 Annual General Meeting of Shareholders:March 18, 2022
Scheduled date of payment of dividend:
March 22, 2022
Scheduled date of filing of Annual Securities Report:
March 22, 2022
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for 2021 (January 1 to December 31, 2021)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit%

Million yen

2021
154,7047.8
2020
143,571
5.3
Note: Comprehensive income (millions of yen)

Million yen

7,481
6,251

Profit attributable toowners of parent

Ordinary profit
Million yen%

Million yen

19.7
7,738
32.1
6,786
2021: 4,838 (down 18.8%)

%

14.0
41.2

4,626 (21.8)
5,913 100.0
2020: 5,960 (up 97.2%)

Net income per share

Diluted net income
per share

Yen

Yen

Ordinary profit on Operating profit tototal assets
net sales

Return on equity

2021
265.02263.192020
341.35339.86
Reference: Equity in earnings of affiliates (millions of yen)
2021: -

%

%

%

%

15.4
23.1

8.8
8.2
2020: -

4.8
4.4(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

As of Dec. 31, 2021
97,269As of Dec. 31, 2020
79,157
Reference: Shareholders’ equity (millions of yen)

Net assets per share%

33,22630,061
As of Dec. 31, 2021: 31,501

Yen

32.4
1,803.96
36.1
1,638.03
As of Dec. 31, 2020: 28,589(3) Consolidated cash flows
Cash flows fromoperating activities
2021
2020

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

1,370
13,770(1,782)(1,030)7,990(6,604)30,74822,817

2. Dividends
Dividends per share
1Q-endTotal

Dividend on
equity(consolidated)

2Q-end3Q-end

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00
0.00
0.00

-

101.7079.50
66.40

101.70
79.50
66.40

1,775
1,388

30.0
30.0
30.0

6.8
4.6

2020
2021
2022 (forecast)Year-end

Total
Payout ratio
dividends (consolidated)

3. Consolidated Forecast for 2022 (January 1 to December 31, 2022)
Net salesFirst half
Full year

Operating profit(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

Yen77,264
168,828

18.8
9.1

1,133
6,244

(53.8)(16.5)

1,046
6,053

(60.1)(21.8)

628
3,862(66.7)(16.5)

36.02
221.22

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: -Excluded: -(2) 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

(3) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Dec. 31, 2021:

17,575,900 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 Dec. 31, 2021:

113,573 shares

3) Average number of shares during the period
2021:

17,456,325 shares

2020:

17,322,494 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for 2021 (January 1 to December 31, 2021)(1) Non-consolidated results of operations
Net sales
2021
2020

Million yen%

Million yen%

Million yen%

Million yen

%

2,461
1,759

39.9
6.5

372
(137)

-

1,724
1,973

(12.6)(51.3)

1,566
2,463

(36.4)(38.2)Net income per share
2021
2020

(Percentages represent year-on-year changes)
Ordinary profit
ProfitOperating profit

Diluted net income per
share

Yen

Yen

89.75
142.2389.13
141.61(2) Non-consolidated financial position
Total assets

Net assets

Million yen

As of Dec. 31, 2021
49,686
As of Dec. 31, 2020
42,185
Reference: Shareholders’ equity (millions of yen)

Equity ratio

Million yen

18,491
18,615
As of Dec. 31, 2021: 18,397

Net assets per share
%

Yen

37.0
1,053.57
44.0
1,063.73
As of Dec. 31, 2020: 18,565* The current financial report is not subject to audit 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 future performance. Actual results
may differ materially from the forecasts for a number of reasons. Please refer to “1. Overview of Results of Operations, (5)Outlook” on page 6 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for financial results
The Company plans to hold a financial results meeting for institutional investors and analysts on Thursday, February 24, 2022.
Supplementary materials to be distributed at this event will be disclosed on the same day, using the Timely Disclosure network(TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

5(3) Cash Flows

5(4) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years

6(5) Outlook

6

2. Basic Approach for the Selection of Accounting Standards

6

3. Consolidated Financial Statements and Notes

7(1) Consolidated Balance Sheet

7(2) Consolidated Statements of Income and Comprehensive Income

9

Consolidated Statement of Income

9

Consolidated Statement of Comprehensive Income

10(3) Consolidated Statement of Changes in Equity

11(4) Consolidated Statement of Cash Flows

13(5) Notes to Consolidated Financial Statements

15

Going Concern Assumption

15

Segment and Other Information

15

Per-share Information

18

Subsequent Events

18

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

1. Overview of Results of Operations(1) Results of Operations
The Japanese economy was impacted by states of emergency and other measures involving the pandemic during2021. As more people were vaccinated, the economy began to recover slowly in the second half of the year. In the
manufacturing sector, which is the primary market of the World Holing Group for the core Human Resources andEducation Business, activity exceeded the pre-pandemic level because of strength in the semiconductor industry.
Despite these positive signs, the outlook for the economy is still uncertain because of another wave of infections
caused by the Omicron variant.
In these challenging market conditions, all segments of the core Human Resources and Education Businessworked closely together while implementing numerous measures for safety during the pandemic. In addition, thestrong performance of the 5G and semiconductor categories, which are markets this business is focusing on, madea big contribution to the growth of consolidated sales and earnings in 2021. The result was record -high sales,
operating profit and ordinary profit.
Net sales increased 7.8% year on year to 154,704 million yen. Operating profit increased 19.7% to 7,481 million
yen, ordinary profit increased 14.0% to 7,738 million yen, and profit attributable to owners of parent decreased
21.8% to 4,626 million yen.
Factory Staffing Business
Sales and earnings increased significantly because of the strong demand for staffing services in the 5G andsemiconductor categories, which this business is strategically targeting. An upturn in orders in the automobile
industry and the addition of new bases in the logistics sector also contributed to the growth of sales and earnings
in this business.
Since the pandemic started in 2020, the highest priority has been recruiting and retaining people for factorystaffing positions. Activities include training programs and assistance for improving skills required for
performing factory tasks. By consistently placing priority on all of these measures, this business was able torespond quickly to the increase in orders of all types as the economy began to recov er in 2021. This was theprimary reason for the big increases in sales and earnings.
Problems involving a labor shortage and the difficulty of hiring people became more severe as Japan’s
manufacturing sector recovered. To overcome these difficulties, we m ade investments, primarily forstrengthening our Job Paper website, and used other measures to build a base for more growth in 2022 andafterward. In addition, we are making extensive use of subcontracting and team formats for projects in order tocreate even better environments for upgrading the skills of our temporary placement workforce. Activities arealso aimed at improving productivity and quality and differentiating our factory staffing services from theservices of competitors.
As a result, sales were 70,707 million yen, up 28.3% year on year and segment profit increased 37.9% to 3,631
million yen.
Technology Staffing Business
Market conditions recovered in all sectors of this business in 2021, particularly in the semiconductor, automobile,
information and telecommunications, and construction engineering categories. Sales and earnings increased as
operations were backed by the seamless utilization of the resources of the World Holdings Group. Cooperation
with the Factory Staffing Business, where performance in the semiconductor industry is strong, made a big
contribution to the growth of this business. In the information and telecommunications category, collaboration
with all group companies is being used to strengthen the ability to perform project s outsourced by othercompanies.
As industries that are the main markets for this business recover, recruiting skilled engineers is becoming evenmore difficult. We are upgrading the skills of our engineers by providing training in control technologies to meetdemand for skills involving the digital transformation and internet of things and in cloud -related system

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

engineering. We also place our engineers in strategic assignments to enable them to advance their careers.
Providing our customers with an even higher level of engineering skills has increased the profitability of theTechnology Staffing Business.
Sales were 18,474 million yen, up 8.7% year on year and segment profit increased 10.6% to 2,233 million yen.
R&D Staffing BusinessIn the core research personal staffing sector, all categories performed well, including biotechnology, chemicals
and analytics in the medical field. The number of orders increased to an all-time high because of some categories
of demand for R&D staffing involving PCR tests, vaccine development and other activities concerning the
pandemic. The strategic expansion of operations to more market sectors also contributed to the growth of thisbusiness. As a result, sales and earnings have been increasing steadily.
While taking actions needed to provide people for the rising number of orders, this business is making large
expenditures for recruiting activities to maintain a base for more growth in 2022. In addition, we are using ourpowerful training programs, which are a key strength of this business, to help employees upgrade and advancetheir careers. Our goal is to be more than simply a matching business by establishing a reputation as a provider ofhighly skilled research personnel.
Sales were 8,012 million yen, up 11.3% year on year, and segment profit increased 5.0% to 885 million yen.
Sales & Marketing Staffing Business
Growth continued in the contact center and light-duty categories. In addition, the performance of this business
was supported by the demand for staffing COVID-19 vaccination facilities and by demand associated with theTokyo Olympics and the year-end peak sales season. The result was big increases in sales and earnings.
We are considering numerous ways to enlarge the range of operations of this business to maintain a base for more
growth in 2022, such as by establishing a new call center and using our expertise concerning moving people todifferent assignments in order to receive orders for business process outsourcing.
Sales were 7,293 million yen, up 90.2% year on year, and segment profit was 352 million yen, compared with asegment profit of 18 million yen in 2020.
Real Estate BusinessWe are operating this business cautiously because prices of the consistently high prices of real estate in Japan.
During the fourth quarter, sales of a large number of properties were completed as planned. Carefully planned andtargeted marketing activities contributed to an increase in the profitability of this business.
Although we remain cautious about purchasing real estate, activities continued for building a base for growthstarting in 2022 as we establish a distinctive position within Japan’s real estate industry. For example, we areusing our commercial property development skills, a key strength of this business, to acquire quality properties
by utilizing synergies with the Human Resources and Education Business for real estate M&A deals for small andmidsize businesses unable to find someone to replace a retiring owner.
Sales were 36,977 million yen, down 23.1% year on year, and segment profit decreased 16.1% to 2,977 million
yen.
Information and Telecommunications Business
The mobile phone shop business is undergoing another phase of significant changes because of the entry of newcompanies, new rate plans by all mobile phone carriers, such as service plans for only internet access, in responseto the request of the Ministry of Internal Affairs and Communications to lower the cost of using a mobile phone.
Earnings decreased because of expenditures for marketing activities, training store personnel and other measures
to establish a network of highly competitive shops. Our goal is to build a network of outstanding stores rooted in
the communities where they are located. The plan is to establish a dominant presence in targeted areas andreceive benefits as one of the survivors in the mobile phone shop market. In another step to set the stage for3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

renewed growth, we are strengthening the corporate solutions business and taking other steps to create a powerful
portfolio of businesses.
Sales were 9,367 million yen, up 2.6% year on year, and segment profit decreased 50.8% to 118 million yen.
OthersThe performance of the agricultural parks business was severely impacted by the suspension of operations of theflagship Harvest Hill, Sakai Green Museum park in Osaka prefecture during the busy spring and summer season
due to declarations of a state of emergency. In the fourth quarter, agricultural park attendance was far above theprior-year level and the recovery in attendance following the downturn caused by the pandemic is continuing. The
result was higher sales and earnings in 2021. As parks are well recognized as outdoor facilities that people canenjoy while avoiding close contact with others, we implemented appropriate marketing ac tivities to improve theirpresence as relaxing facilities necessary for the community.
Sales were 3,872 million yen, up 20.5% year on year, and there was a segment profit of 6 million yen, comparedwith a segment loss of 200 million yen in 2020.

(Millions of yen)

Human
ResourcesandEducation
Business

Factory
Staffing
Business

Net sales

2021
Plan

2021
Result55,102

68,64570,7072,062

15,604

28.3

361

998

37.9

Vs. planAmount%Segment profit

2,632

3,270

3,631

(Profit margin)(4.8%)(4.8%)(5.1%)

Technology
Staffing
Business

Net sales

17,003

18,474

18,474

0

1,471

8.7

Segment profit

2,019

2,200

2,233

33

214

10.6

(Profit margin)(11.9%)(11.9%)(12.1%)

R&D
Staffing
Business

Net sales

7,200

8,051

8,012

(39)

811

11.3

Segment profit

843

934

885

(48)

42

5.0

(Profit margin)(11.7%)(11.6%)(11.1%)

Sales &
MarketingStaffing
Business

Net sales

Subtotal(Reference)

Real EstateBusiness

Year-on-year change

2020
ResultReal EstateBusiness

3,835

6,769

7,293

524

3,457

90.2

Segment profit

18

271

352

81

334

-

(Profit margin)(0.5%)(4.0%)(4.8%)Net sales

83,142

101,940

104,487

2,546

21,34425.7

Segment profit

5,515

6,675

7,104

429

1,589

28.8

(Profit margin)(6.6%)(6.5%)(6.8%)Net sales

48,08136,50936,977468(11,103)(23.1)

62(572)(16.1)

Segment profit

3,550

2,915

2,977

(Profit margin)(7.4%)(8.0%)(8.1%)

Information
andTelecommunications
Business

Information Net sales
andSegment profit
Telecommunications(Profit margin)
Business

9,133

9,338

9,367

29

233

2.6

240

104

118

14

(122)

(50.8)(2.6%)(1.1%)(1.3%)Net sales

3,214

3,567

3,872

305

658

20.5

OthersOther
Business

Segment profit

(200)

(112)

6

119

206

-

(Profit margin)

Total

-

-

(0.2%)Net sales

143,571

151,354

154,704

3,350

11,133

7.8

Elimination or
corporate(2,854)(2,265)(2,724)

(459)

129

-

Operating profit

6,251

7,316

7,481

165

1,230

19.7

(Profit margin)(4.4%)(4.8%)(4.8%)

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

(2) Financial Position
AssetsTotal assets increased 18,111 million yen from the end of 2020 to 97,269 million yen at the end of 2021. This was
mainly due to increases of 7,932 million yen in cash and deposits, 2,889 million yen in notes and accounts
receivable-trade, 6,681 million yen in real estate for sale in process and 487 million yen in goodwill.
Liabilities
Total liabilities increased 14,946 million yen from the end of 2020 to 64,042 million yen. This was mainly due toincreases of 8,245 million yen in short-term borrowings, 987 million yen in advances received, 534 million yen inincome taxes payable and 1,681 million yen in long-term borrowings.
Net assets
Net assets increased 3,165 million yen from the end of 2020 to 33,226 million yen mainly due to increases of
2,854 million yen in retained earnings and 209 million yen in non-controlling interests.
(3) Cash Flows
Cash and cash equivalents at the end of 2021 increased 7,931 million yen from the end of 2020 to 30,748 million
yen.
Cash flows from operating activities
Net cash provided by operating activities was 1,370 million yen. Main positive factors include profit before
income taxes of 7,511 million yen, a 488 million yen increase in trade payables, a 985 million yen increase inadvances received and income taxes refund of 913 million yen. Major negative factors include a 2,448 million
yen increase in trade receivables and a 7,163 million yen increase in real estate for sale.
Cash flows from investing activities
Net cash used in investing activities was 1,782 million yen. Main positive factors include collection of loan sreceivable of 156 million yen. Main negative factors include payments of 879 million yen for purchase ofproperty, plant and equipment and 353 million yen for purchase of investments in new consolidated subsidiary.
Cash flows from financing activities
Net cash provided by financing activities was 7,990 million yen. Main positive factors include net increase of
9,167 million yen in short-term borrowings and proceeds of 10,595 million yen from long -term borrowings. Main
negative factors include repayments of long-term borrowings of 9,981 million yen and dividends paid of 1,775
million yen.
Reference: Cash flow indicators
2017
Equity ratio (%)

22.3

2018
26.3

2019
25.9

2020
36.1

2021
32.4

Market value-based equity ratio (%)

75.3

45.3

37.3

43.2

46.5

Interest-bearing debt to cash flow ratio (%)

522.8

403.5

1,340.2

212.6

2,861.6

Interest coverage ratio (times)

36.3

45.7

14.7

81.3

7.6

Equity ratio: Shareholders’ equity / Total assets
Market value-based equity ratio: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payments
Notes: 1. All indices are calculated based on consolidated figures.
2. Market capitalization is calculated by the total number of shares outstanding after the deduction of treasury shares.
3. Cash flows are calculated using the figures for operating cash flows on the consolidated statement of cash flows.
4. Interest-bearing debt includes all debt on the consolidated balance sheet that incur interest.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

(4) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years
The basic policy for profit distributions is to distribute profits in a manner that reflects results of operations while
retaining sufficient earnings for future business operations and for making business operations stronger. For
dividends, the goal is to stably and consistently increase the dividend while using a consolidated payout ratio of
30% as the guideline for dividends. We plan to pay a year-end dividend of 79.50 yen per share for 2021, as statedin “Notice of Dividends from Surplus” announced on February 9, 2022. We plan to pay a year-end dividend of
66.40 yen per share for 2022 in accordance with this policy.
(5) Outlook
The emergence of the Omicron variant has created concerns about the outlook. Amid growing uncertainty about
the future, the World Holdings Group has established a new five-year medium-term management plan that has thegoal of more growth for the group. Within this plan, 2022 is positioned as a year to make up-front investments for
growth in the following years.
More information about the new medium-term business plan is in the announcement of this plan dated February
24, 2022.
Based on the above, we forecast net sales of 168,828 million yen (up 9.1% year on year), operating profit of
6,244 million yen (down 16.5% year on year), ordinary profit of 6,053 million yen (down 21.8% year on year),and profit attributable to owners of parent of 3,862 million yen (down 16.5% year on year) in 2022.
2. Basic Approach for the Selection of Accounting Standards
The Group uses Japanese accounting standards.
Decisions about the use of International Financial Reporting Standards will be made by taking into consideration
the use of accounting standards in Japan and other countries.

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)2021
(As of Dec. 31, 2021)

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

22,81730,749Notes and accounts receivable-trade

12,817

15,706

639

794

5,748

6,221

Merchandise and finished goods
Real estate for sale
Work in process

123

126

Real estate for sale in process

22,14628,828

Other

3,842

3,663

(2)

(3)

68,132

86,088

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

9,116

9,343

Accumulated depreciation(7,189)(7,364)

Buildings and structures, net

1,926

1,978

1,589

1,661

Land
Other

4,617

5,136

(2,835)(3,310)

1,781

1,826

5,297

5,466

Goodwill

104

592

Other

186

184

Total intangible assets

291

776

Investment securities

1,550

1,425

Deferred tax assets

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
2,398

1,831

Leasehold and guarantee deposits

903

1,051

Other

808

868

Allowance for doubtful accounts

(224)

(239)

Total investments and other assets

5,436

4,938

11,024

11,18079,157

97,269Total non-current assets
Total assets

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

(Millions of yen)2021
(As of Dec. 31, 2021)

2020(As of Dec. 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable-trade

1,072

Accounts payable-real estate business

1,263

527

924

Short-term borrowings

17,20425,450Accrued expenses

6,746

7,010

Advances received

552

1,539

Income taxes payable

1,049

1,584

Accrued consumption taxes

3,110

2,796

124

105

Provision for bonuses
Other

4,248

6,510

Total current liabilities

34,63747,185

12,073

13,754

172

172

1,921

2,380

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

291

547

14,45816,85649,09564,042

Share capital

1,244

1,250

Capital surplus

1,443

1,449

Retained earnings

26,05428,908Treasury shares

(119)

(119)

Total shareholders’ equity

28,62331,489(15)

15

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

127

Remeasurements of defined benefit plans

(20)

(31)

Total accumulated other comprehensive income

(34)

11

Share acquisition rights

49

93

Non-controlling interests

1,422

1,631

Total net assets

30,06133,226

79,157

97,269Total liabilities and net assets

8

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Millions of yen)2021
(Jan. 1 – Dec. 31, 2021)

2020(Jan. 1 – Dec. 31, 2020)
Net sales
Cost of sales

143,571
118,553

154,704
128,073

Gross profit

25,017

26,631

469
7,109
53
205

14
472
7,477
41
137

14

-

1,368
460
1,195
144
7,745

1,403
391
1,188
112
7,909

18,76619,149

6,251

7,481

16
439

14
289

67

5

257

203

781

513

162
19
64

177
23
56

246

257

6,786

7,738

7
175

1
42
-

182

43

197

15

-

253

Selling, general and administrative expenses
Provision of allowance for doubtful accounts
Remuneration for directors (and other officers)
Salaries and allowances
Provision for bonuses
Retirement benefit expenses
Provision for retirement benefits for directors (andother officers)
Welfare expenses
Depreciation
Rent expenses
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Subsidy income
Income of support to investment in property andequipment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Insurance claim income
Gain on extinguishment of tie-in shares
Gain on sales of shares of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on valuation of shares of subsidiaries andassociates
Loss on disaster
Total extraordinary losses

2

0

200

269

Profit before income taxes

6,768

7,511

Income taxes-current
Income taxes-deferred

1,713
(966)

1,935
797

746

2,732

6,021

4,779

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

108

153

5,913

4,626

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

Consolidated Statement of Comprehensive Income(Millions of yen)2021
(Jan. 1 – Dec. 31, 2021)

2020(Jan. 1 – Dec. 31, 2020)
Profit

6,021

4,779

(15)

31

2

40

(48)

(11)

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

(61)

59

5,960

4,838

5,849

4,671

110

166

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

(3) Consolidated Statement of Changes in Equity
2020 (Jan. 1 – Dec. 31, 2020)

Balance at beginning of period(Millions of yen)
Shareholders’ equity
Retained
Total shareholders’
Treasury shares
Capital stock Capital surplus
earnings
equity787
984
20,988(127)
22,633

Changes during period
Issuance of new shares

457

457

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Increase by addition of newly
consolidated subsidiary
Net changes in items other thanshareholders’ equity
Total changes during period

914
(887)

(887)

5,913

5,913

1

(0)

8

9

40

Balance at end of period

40

457

458

5,066

7

5,990

1,244

1,443

26,054(119)

28,623

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasurements accumulated acquisitiondifference on
currencyof definedotherrightsavailable-for- translation
benefit plans comprehensive
sale securities adjustment
incomeBalance at beginning of
periodChanges during period
Issuance of newsharesDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease by additionof newly
consolidated
subsidiary
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

(0)

0

0

28

29

122

Noncontrollinginterests

Total net
assets

1,159

23,944

914
(887)
5,913
(0)
9

40

(15)

1

(48)

(63)

(72)

262

126

(15)

1

(48)

(63)

(72)

262

6,116

(15)

1

(20)

(34)

49

1,422

30,061

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

2021 (Jan. 1 – Dec. 31, 2021)(Millions of yen)

Balance at beginning of period

Shareholders’ equity
Retained
Total shareholders’
Treasury shares
Capital stock Capital surplus
earnings
equity1,244
1,443
26,054(119)
28,623

Changes during period
Issuance of new shares

5

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Increase by addition of newly
consolidated subsidiary
Sales of shares of consolidated
subsidiaries
Net changes in items other thanshareholders’ equity
Total changes during period

511(1,775)(1,775)

4,626

4,626
(0)

3

3

0

Balance at end of period

0

5

6

2,854

(0)

2,866

1,250

1,449

28,908(119)

31,489

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasurements accumulated acquisitiondifference on
currencyof definedotherrightsavailable-for- translation
benefit plans comprehensive
sale securities adjustment
incomeBalance at beginning of
periodChanges during period
Issuance of newsharesDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesIncrease by additionof newly
consolidated
subsidiary
Sales of shares of
consolidated
subsidiaries
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

(0)

(15)

1

(20)

(34)

49

Noncontrollinginterests

Total net
assets

1,422

30,06111(1,775)
4,626
(0)

3

0

31

26

(11)

45

43

209

299

31

26

(11)

45

43

209

3,165

15

27

(31)

11

93

1,631

33,226

12

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

(4) Consolidated Statement of Cash Flows(Millions of yen)2021
(Jan. 1 – Dec. 31, 2021)

2020(Jan. 1 – Dec. 31, 2020)
Cash flows from operating activities
Profit before income taxes

6,768

7,511

Depreciation

823

809

Impairment losses

197

15

Amortization of goodwill

144

112

2

14

15

(9)

317

359

(16)

(14)

(175)

-

162

177

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Interest and dividend income
Loss (gain) on sales of shares of subsidiaries andassociates
Interest expenses
Loss on retirement of non-current assets

19

32

Loss on valuation of shares of subsidiaries and associates-

253

Loss (gain) on extinguishment of tie-in shares

-

(42)

(710)

(2,448)

239

(138)

Decrease (increase) in real estate for sale

13,508(7,163)

Increase (decrease) in trade payables

(395)

488

Decrease (increase) in trade receivables
Decrease (increase) in inventories

Increase (decrease) in accrued expenses

955

69

Increase (decrease) in advances received(8,845)985

Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities

1,862

(836)

247

2,128

Other, net

874

302

Subtotal

15,997

2,608

14

10

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund

(169)

(179)

(2,799)(1,983)727

913

13,770

1,370

Payments into time deposits-(1)

Proceeds from withdrawal of time deposits

21

1

Purchase of property, plant and equipment(1,164)(879)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Purchase of intangible assets
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of investments in consolidated subsidiary

(35)

(65)

2,029

-

-

(353)

Purchase of investments in non-consolidated subsidiary(1,912)(169)

Sell of stocks non-consolidated subsidiary

6-

Payments for acquisition of businesses

-

(65)

Net decrease(increase) in lease and guarantee deposits
Loan advances

24

(119)

(69)

(150)

Collection of loans receivable

5156

Other, net

64

(134)

(1,030)(1,782)

Net cash provided by (used in) investing activities

13

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

(Millions of yen)2021
(Jan. 1 – Dec. 31, 2021)

2020(Jan. 1 – Dec. 31, 2020)
Cash flows from financing activities
Proceeds from sale of shares of subsidiaries not resulting
in change in scope of consolidation
Net increase (decrease) in short-term borrowings-

30(7,344)

9,167

Proceeds from long-term borrowings

12,18910,595

Repayments of long-term borrowings(11,412)(9,981)(2)(4)

Repayments of lease obligations
Redemption of bonds
Proceeds from issuance of shares
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares

-

(15)

706

8

150

-

(0)

(0)

(887)

(1,775)(2)(35)(6,604)

7,990

3

52

Net increase (decrease) in cash and cash equivalents

6,139

7,630

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries

16,513

22,817

157

208

7

92

Cash and cash equivalents at end of period

22,81730,748Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

14

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Segment and Other Information
Segment Information
1. Overview of reportable segments
Segments used for financial reporting are the constituent units for which separate financial information isavailable and for which the Board of Directors performs periodic studies for the purposes of determining theallocation of resources and evaluating performance. Based on the characteristics of products and services, World
Holdings has established the following reportable segments: the factory staffing business, technology staffing
business, R&D staffing business, sales & marketing staffing business, real estate business, and information andtelecommunications business.
Overview of each business segment is as follows.
(1) Factory Staffing Business: Temporary staffing for manufacturing and logistics, subcontracting,outsourced government agency tasks, temporary staffing and employment agency services ,materials-related human resources solutions(2) Technology Staffing Business: Temporary staffing for engineers, outsourced software development,
outsourced repair and maintenance work, outsourced IT system development, repair of digitalequipment, temporary staffing for construction engineers(3) R&D Staffing Business: Temporary staffing for research personnel and clinical research outsourcing(4) Sales & Marketing Staffing Business: Temporary staffing in the service sector and tourism humanresource solutions(5) Real Estate Business: Sale of condominiums, detached houses and residenti al building sites, brokeragesales, condominium and building management, real estate consulting, renovations, real estate brokerage
services, rental property management, manufacture/sale/rental of prefabricated houses(6) Information and Telecommunications Business: Operation of call centers, sale of telecommunications
products, sale of office automation products
2. Calculation methods for net sales, profit or loss, assets, and other items for each reportable segment
The accounting methods for reportable segments are the same as those used for preparing the consolidated
financial statements.
Profits for reportable business segments are operating profit figures.
Inter-segment sales and transfers are based on market prices.

15

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

3. Information related to net sales, profit or loss, assets and other items for each reportable segment2020 (Jan. 1 – Dec. 31, 2020)(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni- Subtotal
Staffing
Business Business BusinessBusinesscations
Business
Business
Net sales
Sales to externalcustomers
Inter-segment
sales andtransfers

Others(Note 1)

Total

Amounts
shown onAdjustconsolidated
ments
financial(Note 2)statements(Note 3)

55,102

17,003

7,200

3,835

48,081

9,133

140,357

3,214

143,571-

143,571

0

489

-

268

47

28

834

131

965

(965)

-

Total

55,103

17,492

7,200

4,103

48,1289,161

141,191

3,345

144,537(965)

143,571

Segment profit(loss)

2,632

2,019

843

18

3,550

240

9,305

(200)

9,105

(2,854)

6,251

Segment assets

8,571

3,514

1,218

1,601

40,4483,346

58,701

4,555

63,256

15,90079,157

10

21

13

0

396

46

489

183

673

150

823

1

-

-

-

93

34

128

-

128

15

144

-

-

-

-

-

29

29

168

197

-

197

5

5

4

0

793

118

928

162

1,091

54

1,145

Other items
Depreciation
Amortization of
goodwill
Impairment loss
Increase inproperty, plantand equipment
and intangible
assets

Notes:

1. “Others” represent businesses not included in reportable segments and include the operation a nd management ofagricultural parks, the operation of personal computer schools, the production of websites and other services.
2. Contents of adjustments are as follows.
(1) The -2,854 million yen adjustment to segment profit includes elimination for inte r-segment transactions of 55
million yen, and -2,909 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable
to any of the reportable segments.
(2) The 15,900 million yen adjustment to segment assets is corporate assets that are not allocated to any of thereportable segments. Corporate assets mainly consist of the Company’s surplus funds (cash and deposits).
(3) The 150 million yen adjustment to depreciation is related to corporate assets that are not allocated to any of
the reportable segments.
(4) The 15 million yen adjustment to amortization of goodwill is not allocated to any of the reportable segments.
(5) The 54 million yen adjustment to increase in property, plant and equipment and intangible assets is capital
expenditures that are not allocated to any of the reportable segments.
3. Segment profit is adjusted to be consistent with operating profit shown on the consol idated statement of income.

16

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

2021 (Jan. 1 – Dec. 31, 2021)(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni- Subtotal
Staffing
Business Business BusinessBusinesscations
Business
Business
Net sales
Sales to externalcustomers
Inter-segment
sales andtransfers

Others(Note 1)

Total

Amounts
shown onAdjustconsolidated
ments
financial(Note 2)statements(Note 3)70,707

18,474

8,012

7,293

36,977

9,367

150,831

3,872

154,704-

154,704

24

630

0

229

10

18

914

128

1,042

(1,042)-70,731

19,105

8,012

7,522

36,988

9,385

151,746

4,001

155,747(1,042)

154,704

Segment profit

3,631

2,233

885

352

2,977

118

10,200

6

10,206(2,724)

7,481

Segment assets

10,633

5,082

1,345

1,803

51,473

3,318

73,6562,329

75,98521,283

97,269

11

17

11

8

451

40

539

150

690

118

809

1

53

-

7

-

34

97

-

97

15

112

-

-

-

-

-

15

15

-

15

-

15

10

8

2

0

508

17

547

132

679

322

1,001

Total

Other items
Depreciation
Amortization of
goodwill
Impairment loss
Increase inproperty, plantand equipment
and intangible
assets

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. Contents of adjustments are as follows.
(1) The -2,724 million yen adjustment to segment profit includes elimination for inter-segment transactions of 1
million yen, and -2,726 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable
to any of the reportable segments.
(2) The 21,283 million yen adjustment to segment assets is corporate assets that are not allocated to any of thereportable segments. Corporate assets mainly consist of the Company’s surplus funds (cash and deposits).
(3) The 118 million yen adjustment to depreciation is related to corporate assets that are not allocated to any of
the reportable segments.
(4) The 15 million yen adjustment to amortization of goodwill is not allocated to any of the reportable segments.
(5) The 322 million yen adjustment to increase in property, plant and equipment and intangible assets is capital
expenditures that are not allocated to any of the reportable segments.
3. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statement of income.

17

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

Per-share Information
(Yen)
2021
(Jan. 1 – Dec. 31, 2021)

2020(Jan. 1 – Dec. 31, 2020)
Net assets per share

1,638.03

1,803.96

Net income per share

341.35265.02

Diluted net income per share

399.86263.19Note: Basis for the calculation of net income per share and diluted net income per share is as follows:
2020(Jan. 1 – Dec. 31, 2020)

2021(Jan. 1 – Dec. 31, 2021)

Net income per share
Profit attributable to owners of parent (Millions of yen)

5,913

4,626

-

-

5,913

4,626

17,322,494

17,456,325--

Increase in number of common stock (Shares)

76,329121,494[of which share acquisition rights (Shares)][76,329][121,494]--

Amount not attributable to common shareholders(Millions of yen)
Profit attributable to owners of parent applicable tocommon stock (Millions of yen)
Average number of common stock outstanding during theperiod (Shares)
Diluted net income per share
Adjustment to profit attributable to owners of parent(Millions of yen)

Summary of potentially dilutive shares not included in thecalculation of diluted net income per share due to theiranti-dilutive effect

Subsequent Events
Business Combinations
Business combination through acquisition
The Board of Directors of World Holdings Co., Ltd. approved a resolution on January 6, 2022 to purchase 90% of
the stock of Dimples’ Co., Ltd. A contract to purchase this stock was signed on the same day. In accordance withthis contract, World Holdings plans to acquire these shares on February 28, 2022.

1. Summary of business combination(1) Acquired company and its business activities
Acquired company: Dimples Co.,Ltd.
Business activities: Temporary staffing services, recruiting and placing business, outsourcing, subcontracting,business, education and training business(2) Reasons for acquisition
The core Human Resources and Education Business of World Holdings has grown steadily since the company’s
inception primarily in the manufacturing sector, including R&D, product design and development, producti on. In
recent years, World Holdings has been taking many actions for the growth of human resources and education
operations in the service sector, such as sales activities involving direct customer interaction, light -duty jobs, andcontact centers. The goals are to continue growing and to create the “ways we live” for even more people. Within
the service sector, providing people capable of providing high -quality hospitality in the tourism industry,including at high-end hotels, is a priority.
Dimples has the vision of being a source of an increasingly broad range of places where people can use smiles tomake others happy. Expertise acquired in the department store sector involving selling merchandise to customers
is a major strength of Dimples. The company uses this knowledge to be a source of people for temporary andpermanent jobs that require outstanding hospitality skills, handle outsourced information services projects, andprovide other services.
This acquisition will make Dimples a key element of the service sector operations of the World Holdings Group.

18

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2021

The skills and business network of World Holdings’ service sector human resources activities will be combinedwith Dimples hospitality sector services that provide customers with substantial added value .
(3) Acquisition date (tentative)
February 28, 2022
(4) Legal form of acquisition
Acquisition of shares with cash(5) Name of the acquired company after acquisition
There is no change in the company’s name.
(6) Percentage of voting rights acquired
Percentage of voting rights owned immediately before acquisition: Percentage of voting rights acquired on the acquisition date: 90 .0%
Percentage of voting rights after acquisition: 90.0%(7) Basis for choosing the acquiring company
Purchasing shares of Dimples Co.,Ltd. with cash will give 90% of its voting rights to WORLD HOLDINGS.
2. Purchase of shares of consolidated subsidiaries(1) Acquisition cost of the acquired company and breakdown (tentative)
Payment for the acquisition
Acquisition costCash3,780 million yen
3,780 million yen(2) Details of major acquisition-related costs
Not yet determined.
(3) Goodwill resulting from the acquisition
Not yet determined.
(4) Breakdown of assets acquired and liabilities assumed on the acquisition date
Not yet determined.

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

19