FY2019 Financial Results

February 17, 2019 (Mon)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange(2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Table of Contents

I. Summary of FY2019 Financial Results
・Summary of Financial Results
・Overview of Business Results by Segment
・Details of Each Segment
・Financial Condition B/S・Cash Flows

… P3
… P5
… P6
… P14
… P15

II. Outlook for the Term Ending Dec. 2020 and Future Strategies
・FY2020 Business Forecast
・FY2020 Factors for Increasing or Decreasing Operating Income
・FY2020 Business Forecast by Segment
・Strategies by Segment
・Shareholder Returns

… P17
… P18
… P19
… P20
… P27

III. Reference

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

1

I. Summary of FY2019 Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Summary of Financial Results (1)⚫ The Human Resources and Education Business, which is the mainstay, was healthy, due to the growth in the fields oftechnology development, etc.

⚫ Neither sales nor profit reached the initial estimates, mainly because the posting of revenue from some transactions in
the Real Estate Business was postponed until the following term (sales: about 10 billion yen; operating income: about 1.5
billion yen).
⇒ For details, see the following slide.
(Unit: Million yen)

Results forthe term
ended Dec.
2018

Results forResult against
the term
estimate
ended Dec.
Achievement
2019
rate

*Initial
estimate

Net sales

142,894

155,452

136,319-19,132-6,575-4.6%

Operatingincome

7,370

6,049

4,730

-1,318-2,639-35.8%

Ordinary income

7,357

5,910

4,805

-1,105-2,551-34.7%Net income
attributable toowners of parent

4,650

3,672

2,956

-715

-1,693-36.4%

YoY
ChangePct.
Change*Announced on February 12, 2019
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved3Summary of Financial Results (2):～Factors for the failure to reach the initial estimates⚫

Operating income was 1,318 million yen smaller than the initial estimate.

*Unlike tax accounting, in financial accounting, revenue (sales) is posted in the following term, so the sales of 3
pieces of land for business in the Real Estate Business (sales: 10,004 million yen; operating income: 1,519 million
yen) are to be posted in the following term.
[Sale of 3 pieces of land for development]

Operating income for the term ended Dec. 2019
The procedure for registering ownership transfer was[million yen]completed by Dec. 2019. (90% of prices have been already
6,249

6,049

received.)↓

Actual handover completed

3 pieces of land
1,519

In financial accounting, revenue (sales) is posted whenremaining amounts are received. Therefore, the posting will
be in the next term.

4,730

In tax accounting, actual handover has been completed, so
revenue is posted in fiscal 2019.
[million yen]

Initial estimate

Results(For reference)
3 pieces of land
taken into accountInitialestimate

Resultsfor 2019

3 piecesof land2019“Actual”

Resultsfor 2018

Net sales

155,452

136,319+10,004

146,323

142,894

Operatingincome

6,049

4,730

+1,519

6,249

7,370

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4Overview of Business Results by Segment (Results Compared to the Previous Term)

Results forthe term
ended Dec.
2018

Unit: Million yen

Net sales

75,0384,964
49,524
3,169
15,200
1,337
6,779
559
3,533
-100
52,011
4,589
12,376
3
3,467-270
142,894

Elimination o r
corporate-1,917

Operating income

7,370

Net sales

34,1993,651
17,812938

Net sales

Total

Segment income
Factory Business

Human Resources
and Education
Business

Technology BusinessNet sales
Segment income
Net sales
Segment income

R&D BusinessNet sales
Segment income
Net sales

Sales & Marketing
Business

Segment income

Real EstateBusiness

Real EstateBusiness

Segment income

Inf ormation andTelecommunications
Business

Information andTelecommunications
Business

Other

Net sales

Net sales
Segment income
Net sales

OthersSegment income

Total(Profit margin)(6.6%)(6.4%)(8.8%)(8.3%)－(8.8%)(0.0%)－

Results forthe term
ended Dec.
2019

77,774
5,179
50,001
2,679
16,902
1,761
7,108
711
3,761
27
42,082
1,460
12,34410
4,118
132
136,319

YOY(Profit margin)

Change(6.7%)(5.4%)(10.4%)(10.0%)(0.7%)(3.5%)(0.1%)(3.2%)-2052(5.2%)

4,730(3.5%)

Pct. Change

2,735
214
477
-489
1,702
423
328
152
227
128
-9,929-3,129
-32
7
650
402
-6,575

3.6
4.3
1.0
-15.5
11.2
31.7
4.9
27.2
6.4
－
-19.1
-68.2
-0.3
193.0
18.8
－
-4.6

-134

－

-2,639-35.8-11,974-2,898
2,045
-231

-35.0
-79.4
11.5
-24.6

<Reference>
Real EstateBusiness

Development/Singlefamily
housing

Segment income

Renovation/PrefabricatedhousesSegment income

Net sales(10.7%)(5.3%)

22,225753
19,857707

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved(3.4%)(3.6%)

5

Human Resources and Education BusinessOverall Segment<Composition Ratio of Sales and Segment Income by Segment>⚫

Response to the changing external environment, such as amendments to laws
⇒Promoted measured upfront investment from the medium- and long-term perspective in order to raise the brand strength(capability of gathering workers)⚫ Stagnant demand influenced by the overseas environment⇒The Factory Business was partially affected, but there was no significant impact on Technology or R&D Businesses.

◆ Sales composition◆ Segment income(Million yen)

Up 3.6%90,00083,36180,00070,00060,0004.9%
9.2%

75,038
4.7%
9.0%

Down
6.7%

77,774

YoY(Based on
monetary
amount)(Million yen)

5,617

6,000

4.8%
9.1%

+6.4％
+4.9％

5,000

21.7%

+11.2％

4,000

0.7%
12.8%

4,964

21.9%
20.3%

Up 4.3%

7,000

11.3%

5,179
Down
7.8%

0.5%
13.7%

27.6%

26.9%

34.0%

50,0003,000
40,0002,000

30,000
64.1%

66.0%

64.3%

20,000+1.0％

0
2018/12actualFactory-1,0002019/12estimate
Technology

R&D

actualSales & Marketing

51.7%

1,000
0

10,000

58.9%

63.8%

-2.0%

2018/12actualFactory

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2019/12estimate

Technology

R&D

actualSales & Marketing6

Human Resources and Education BusinessOverall Segment<The number of staff members>⚫
⚫

The Factory Business was affected by the partial reduction of production of smartphones, semiconductor equipment, etc.,
but secured existing orders and the logistics field continued to grow.
The Technology Business grew considerably together with the assignment of new employees largely thanks todevelopment and assignment of employees at our Engineering Training Center.

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

Record high25,00020,193

20,179

1,191
1,052
2,328

1,228
1,036
2,386

14,464

15,622

15,5292018/1Q

2018/2Q

2018/3Q

20,00019,11515,000

1,540
996
2,115

21,577
1,335
1,023
2,437

21,64520,70320,704

1,362
1,093

1,513
1,074

2,639

2,654

15,151

15,60915,463

16,266

2019/1Q

2019/2Q

2019/3Q

2019/12

19,889
1,261
1,005
2,472

1,701
1,045
2,634

10,00016,7825,000

0Factory

2018/12
Technology

R&D

Sales & Marketing

The number of staff in the Factory Business includes external staff members accepted from other companies.

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7

Human Resources and Education Business

Factory Business<Sales composition by business segment and the number of staff members>⚫

There was an impact of production curtailment in some businesses related to equipment for smartphones and semiconductors, but
the marketing structure was strengthened, and we cultivated growing industries for 5G, automatic driving, etc. for the next term.
Trained around 1,000 employees to produce leaders and managers for strengthening the businesses of undertaking tasks anddispatching teams.
The logistics industry is growing stably. The company also promoted the development of management staff for establishing new
business footholds.

⚫
⚫

◆ Sales composition by business segment◆ Segment income
YoY(Based on
monetary
amount)Up 1.0%(Million yen)

60,00053,42750,00049,524

Down
6.4%

16.7%

40,0002.8%
8.6%

30,00013.0%
3.1%

50,001

Down 15.5%(Million yen)

3,500

3,169

3,000

17.2%

+4.1％

3.0%
5.2%

+11.1％-39.1％

2,500

12.9%

+0.1％

2,000

4.1%

+32.2％◆ Variation in the number of staff (3-month average)

3,309

Down
19.1%

2,679

38.4%

35.8%

+8.3％

18,000*Parentheses signify the number of new employees.

16,782[239]

16,266
[274]

5,463

5,017

1,383

1,077

9,936

10,172

2018/122019/1216,00014,00012,00010,0001,500
20,000(Persons)

20,000

8,000
6,000

1,000

4,000

10,000

500
20.0%

19.2%

0
2018/12actualElectric & Electronics
Semiconductors
Others

2,000

-3.3％

0
2019/12estimate
Logistics
Machinery0
2018/12actualactual2019/12estimate
actualAutomobiles
Environment & Energy*We have not disclosed the sales estimate by segment.

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Other companies/acceptance
Entrusted by overseas and government office
Number of staff*The number of staff is a three-month average. External staff
members accepted from other companies are included.
*Number of staff included only staff members who are engaged
in on-site operation work.

8

Human Resources and Education BusinessTechnology Business<Sales composition by business segment and the number of staff members>
In the scheme for training and producing engineers “Academia where people can flourish*,” inexperienced workers could be trained
sufficiently, and the number of workers dispatched to the fields of automobiles, information, communications, etc. and averagespending, too, increased.
For the next term, we worked on the improvement of programs for training experienced workers and existing employees, too.

⚫
⚫

*For existing employees, the main courses include those for career change and brushing up their skills. For inexperienced ones, the major courses include 3DCAD training at Design Center, training in production engineering at “Production Engineering Center,” programming training in coordination with Advan Inc.,and network infrastructure training.

◆ Sales composition by business segment

Up 11.2%(Million yen)

20,00018,22818,00016,000Down
7.3%

15,20010,0008,000

16,902

YoY(Based on
monetary
amount)2,000+31.0％

29.9%

1,400

(Persons)

Up 13.7%

1,548

2,500

15.2%

2,634
[175]
402

367

1,337

2,000

8.4%
4.7%

+42.8％
+1.9％

1,000

19.3%

+48.9％

800

1,500

400

42.6%

34.2%

200

0
estimate

2018/12actualactual739

697

2018/122019/1200
2019/12

1,535

500

-5.9％

2,000

1,331

1,000

600

Semiconductors
Machinery
Others

2,437
[114]

1,200

6.9%
5.4%

2018/12actual*Parentheses signify the number of new employees.

3,000

1,761

1,800

6,000
4,000

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

Up 31.7%(Million yen)

1,600
33.4%

14,00012,000◆ Segment income

2019/12estimate
actualInformation and telecommunications service
Automobiles*We have not disclosed the sales estimate by segment.

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Construction, repair and other technology
Design development
Production technology*The number of staff is a three-month average.
*Number of staff included only staff members who are engaged
in on-site operation work.

9

Human Resources and Education Business

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

The Researcher Dispatch segment increased transactions with existing clients in the field of medicine, biotechnology andchemistry.
To evolve from a “staffing company” and win the trust as a “research supporting enterprise,” we recruited excellent
researchers, and concentrated on the improvement of their research and human skills through collaborative research withaffiliated universities
The clinical test undertaking business (CRO) section strived to improve operation rate through the structural reform in
DOT World, and promoted the undertaking of doctor-led clinical tests based on nurtured relationships.

⚫
⚫

◆ Sales composition by business segment(Million yen)

9,000

Up 4.9%6,000

Recruitment discussed forentry to the advanced field

7,638

8,000
7,000

◆ Segment income

6,779
13.1%

YoY
(Based on
monetary
amount)

-0.8％

7.5%

+4.1％

39.5%

+0.8％

5,000
4,000

(Persons)

1,200

Down 1.0%

719

711

1,000

700
600

559

*Parentheses signify the number of new employees.

1,023
[78]

1,045
[96]

93

79

931

966

2018/122019/12

800

500
41.1％

3,000

600
400
400

300

2,000
1,000

900

DOT World invested inUpstructural reform for growth
27.2%

800

Down 7,108
6.9% 12.4%

7.5％(Million yen)

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

200
40.7%

38.3％

100

0
2018/12actual200+11.3％

00
2019/12estimate

Pharmaceutical/biotechnology
ChemicalClinicalactual2018/12actual2019/12estimate

actual

R&D staff

CRO*We have not disclosed the sales estimate by segment.

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

10Real Estate Business

Real Estate Business<Sales composition by business segment, and the number of pieces of real estate handed over>⚫
⚫
⚫

In the development-related business, we focused on the securing of profit, and conducted timely procurement andhandover. Then, the posting of sales of 3 pieces of land for business was postponed until the next term.
Expecting the future growth of demand, we concentrated on the popularization of the brand related to real estate
revitalization (renovation and conversion).
Acquired Mirai Servicing Co., Ltd. to enter the real estate financing field.

◆ Sales composition by business segment◆ Segment income

Down 19.1%(Million yen)

60,00052,011

YoY(Based on
monetary
amount)56,06350,000
Down
24.9%

34.2％

40,00030,000

Down 68.2%(Million yen)

5,000

4,589

4,000

42,082+11.5％

2,753

3,000

47.2%

14.9%

2,000
20,000
26.0%

Down 1,460
47.0%+41.7％

50.8%

1,000

10,00026.8%-57.4％

00
2018/12actualestimate

2019/12actualDevelopment-related
Single-family housing
Renovation-related
We have not disclosed the sales and segment income estimate by business segment.

2018/12actual2019/12estimate

actual*The posting of revenue from some transactions postponed until the next term
(sales: about 10 billion yen; operating income: about 1.5 billion yen)

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11

Information and Telecommunications BusinessInformation and Telecommunications Business＜Sales for each target and segment income＞⚫

⚫

We took measures to invest mainly for strengthening the shop business, which is our mainstay (including theorganizational and shop infrastructure development to respond to amendment to laws, brushing up knowledge and ability
to attend to customers, etc.) with the aim of sharing the merits of remaining players. On the other hand, we planned theestablishment of a network of excellent shops, and promoted the integration and closing of stores.
In the corporate solutions business on which we focus, we planned to strengthen the sales system and increased the HR
mobility. We also developed call centers for selling new products, etc.

◆ Sales for each target(Million yen)

◆ Segment income

Down 0.3%

14,00012,376
12,00012,01910.1%

12,344Up 2.7%

YoY(Based on
monetary
amount)

1.3%

+1.0％

(Million yen)

157

160

Segment income(overall)110

10,000
60

8,000
6,000

89.9%

89.7%

-0.7％

10

10

3

4,000
-40
2,000
0

-90
2018/12actual2019/12estimate

actualMobile phone shop businessCorporate solutions business*We have not disclosed the sales and segment income estimate by destination.

2018/12actualMobile phone shop business

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2019/12estimate
Corporate solutions businessactualTotal

12

OtherOthers<Sales and major activities>
Farm Co., Ltd., which specializes in the agricultural park business, opened a giant athletics facility “Alps Gym” in “Shiga
Agricultural Park Blumen Hugel Farm” in Shiga Prefecture in March, and the number of visitors increased over 1.5 times.
Measures for attracting customers certainly exerted their effect, such as redevelopment of facilities, including the openingof “Sylvanian Park” in Comorebi Morino Ibaraido in Ibaraki Prefecture in the previous term. We earned profit in 3 years
after the entry.
Advan Inc. exerted synergy to the education business of our Group as well as outside our Group.

⚫

⚫

◆ Sales◆ Segment income(Million yen)

Up 18.8%

4,500
4,000
3,500

4,118

4,008

YoY
(Based on (Million yen)monetary
200
amount)(Ten thousand)

108

132

150

Up
2.8% 15.3%

3,467◆ Number of visiting customers+27.3％

14.2%

100

104

45

50

3,000

102

0

2,500

105.6

106

100

-50

2,000
1,500

77.7%

96

-150

1,000
500
0

98

+21.4％ -100

76.0%

9.7%

2018/12actualAdvan Inc.

-14.2％

7.0%

2019/12estimate
Farm Co., Ltd.

-200

94

-250

92

-300

-270
2018/12actualactual94.8

90
2019/12estimate

2018/122019/12actualOther*We have not disclosed the breakdown of the sales and segment income estimate.

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13

Financial Condition B/S⚫

The revenue from 3 pieces of land for business will be posted in the next term. ⇒ Advances received increased temporarily.

Total assets(Million yen)

100,000
80,00079,96487,352Current
assets

76,920・Cash and deposits
・Notes and accounts receivable-trade
・Real estate for sale・Real estate for sale in process

60,00040,00069,823

Fixedassets

20,0000

10,14010,431

End of FY2018

End of FY2019

Fixed assets

100,000
80,00060,000-2,312 million yen＋841 million yen＋3,180 million yen＋5,109 million yen

10,431（+291）

・Total property, plant and equipment
・Goodwill・Investment securities＋480 million yen-609 million yen＋413 million yen

Current assets

Total liabilities/net
assets(Million yen)

76,920 （+7,097）

Liabilities

87,352

79,964
46,136

52,79011,47910,61722,34723,944End of FY2018

End of FY2019

63,408（+5,791）

・Short-term debt
・Accounts payable-real estate・Advances received
・Long-term debt

-620 million yen-813 million yen＋8,785 million yen-520 million yen

40,00020,0000
Net asset

Fixed liabilities

Net
assets23,944（+1,596）

・ Retained earnings＋1,575 million yen

Current liabilities

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14

Cash Flows⚫ Operating CF was plus 2,708 million yen, investment CF was minus 2,489
million yen, and financial CF was minus 2,597 million yen.
(Million yen)

Operating CF

Investment CF

Financial CF
Operating CF

・Current net profit before taxes and other adjustments
4,764 million yen
・Increase in real estate for sale -8,262 million yen
・Increase in advances received 8,877 million yen-2,4892,708-2,597
Term-endbalance of
cash andcash
equivalents

Term-startbalance of
cash andcash
equivalents

18,824

Investment CF

・Expenditure through the acquisition of property,
plant and equipment-1,475 million yen

16,513Financial CF・Net decrease in short-term debt
-3,445 million yen
・Proceeds from long-term borrowing
8,377 million yen
・Expenditure through the repayment of long-term debt
-6,071 million yen
・Payment of dividends-1,397 million yen-2,311 million yen

End of
FY2018Operating

Investment

Financial

End of
FY2019Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

15II. Outlook for the Term Ending Dec. 2020 and Future Strategies

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16

FY2020 Business Forecast⚫

To steadily implement the new medium-term management plan, which concentrates on sales growth⇒ To business administration that emphasizes sales growth from the previous term

Results for theterm ended Dec.
2019

Forecast for theterm ending
Dec. 2020

Unit: Million yen, %YoYChangePct. Change

Net sales

136,319

159,682

23,363

17.1

Operating income

4,730

7,851

3,120

66.0

Ordinary income

4,805

8,338

3,533

73.5

Net income attributable to

2,956

5,601

2,644

89.5

175.59332.6099.8

157.01

89.4

47.1

89.4

owners of parent

EPS (yen)
Dividend per share (yen)52.7

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17

FY2020 Factors for Increasing or Decreasing Operating Income⚫ Profits are estimated to rise in all segments.
・In the development business, weconcentrate on the securing of profit.
・We focus on the real estate
revitalization-related business.

209

21
-602

2,666

To the phase of recouping
upfront investment for
growth

7,851
826

4,730

FY2019operating income

Human Resources
and Education
Business

Real EstateBusiness

Information andTelecommunications
Business

Other

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Adjustment

FY2020operating income(estimate)18

FY2020 Business Forecast by Segment⚫

The Human Resources and Education Business, which is the mainstay, will keep growing year on year.

Results for theterm ended Dec.
2019

Unit: Million yen, %Net sales

Total
Segment income
Net sales

Human
ResourcesandEducation
Business

Factory Business
Segment income
Net sales

Technology Business
Segment income
Net sales

R&D Business
Segment income

Sales & Marketing
Business

Real EstateBusiness

Real EstateBusiness

Information andTelecommunications
Business

Information andTelecommunications
Business

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

Other

OthersSegment income
Net sales

Total

Elimination or
corporate
Operating income

77,774
5,179
50,001
2,679
16,902
1,761
7,108
711
3,761
27
42,082
1,460
12,34410
4,118
132
136,319-2,052
4,730(Profitmargin)(6.7%)(5.4%)(10.4%)(10.0%)(0.7%)(3.5%)(0.1%)(3.2%)(3.5%)

Forecast for theterm ending
Dec. 2020

88,3396,006
57,3893,399
18,327
1,913
7,446
753
5,176
-59
56,3694,126
10,644
220
4,330
153
159,682-2,654
7,851

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved(Profitmargin)(6.8%)(5.9%)(10.4%)(10.1%)(-)(7.3%)(2.1%)(3.5%)(4.9%)

YOY
Change10,566
827
7,388
720
1,425
152
338
41
1,415
-87
14,287
2,666-1,700209
211
21
23,363(-)
3,121

Pct. Change

13.6
16.0
14.8
26.9
8.4
8.6
4.8
5.8
37.6
(-)
33.9
182.6
-13.8
1,910.6
5.1
16.3
17.1
(-)
66.0

19

Human Resources and Education Business

Future strategy for Human Resources and Education Business (1)Basic policy for mid/long-term growth<To strive to actualize co-sourcing* by improving technical and interpersonal skills>＊Co-sourcing: The advanced version of outsourcing for not only offering quantitative aid for human resources, but also
joining hands to solve problems[Strategies in the rolling plan of the new medium-term management plan 2021]
From the phase of upfront investment in human resources
development to the recoupment phase (expansion of sales and profit)
To increase transactions with customers who have long-term needs (for 5G, automatic
driving, etc.) and cultivate new fields

To find high-quality business partners through the expansion of cooperation
To enhance the businesses of undertaking tasks and dispatching teams ⇒ To actualize thevirtuous cycle of personnel development and improvement in retention rate

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved20Human Resources and Education Business

Future strategy for Human Resources and Education Business (2)Creation of
unprecedented markets

Market scale: 3.5 trillion yen

Market scale: 6.5 trillion yen + α
Cultivation

Manufacturing
field
Actualization of cosourcing

No. 1 brandFields other thanmanufacturing

Technical andinterpersonal skills
Cementing of cooperation among businesses ⇒ Comprehensive contracts
Expansion of collaboration (joint ventures and consortium models)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

21

Human Resources and Education Business

Example of a consortium model－JW Solution[New type of HR business called the consortium model]
Through the Factory Business, our company formed a consortium and accumulated know-how.
⇒ To offer opportunities to clients who want to secure adequate personnel and staffing
companies that face difficulty in approaching large clients, and foster win-win relationships[Creation of new markets in the HR business]

To operate the HR business in the tourism field, in which competitors have not conductedbusiness, while focusing on high hospitality around Japan⇒ This business became possible through the alliance with JTB, which possesses brand power
and networks in this field
Scene of “Press conference regarding the collaborative
businessof World Holdings and JTB Group”(Jan. 28, at Imperial Hotel)
From left
Eikichi Iida
Chairman and President
World Holdings Co., Ltd.
Shinji Honda
Representative Director and President
JW Solution Co., Ltd.
Hiroyuki Takahashi
Representative Director, President, and Executive Officer
JTB Corporation
Akihiko Hosono
Representative Director, President, and Executive Officer
JTB Communication Design, Inc.

We will keep striving to create a new HR business market,
by operating a joint venture and the consortium model.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

22

Human Resources and Education Business

Future strategy for Human Resources and Education Business (3)To form a virtuous cycle by further systematizing personnel development,
organization, and evaluation

Technical and interpersonal skills
Skill development + management education⇒ Production of PM/PL

Improvement in customer
satisfaction level
Improvement in retention
rate
Improvement in employee
satisfaction level

Development

Improvement of
employees’ lifestyles
Evaluation
Organization

Development of a personnel
evaluation system so that
employees can design theirown roadmaps

Promotion of employees’
career development
To motivate employees

Development of advanced organizations
Expansion of the range of undertaking tasks

Improvement in market
value of employees

Improvement of the capability of gathering workers ⇒ To become acompany selected by both employees and clients
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

23Real Estate Business

Future strategy for Real Estate Business (1)Transfer of all shares of Hoei Construction Co., Ltd.

There is a case in which the priority domains in which managerial resources are invested
are changed through the reform of our business portfolio, but

Our basic policy for mid/long-term growth isunchanged.
[Even after expanding into the general real estate business, we aim to establish a robust
management structure.]
・To continue the expansion of our product lineup, business domains, and areas, toenhance our brand⇒ In the short term, we will concentrate on the real estate revitalization-related business,and launch a real estate financing business・To achieve a good balance between one-shot revenue and recurring revenue
businesses

We aim to grow stably while optimizing our portfolio and dispersing risks.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

24Real Estate Business

Future strategy for Real Estate Business (2)[Structure of real estate business from now on]

Real estate in kind
Development

Real estate
revitalization-related

New condominiums
Single-family houses

Renovation
Conversion

Procurement

Sale

Distribution, brokerage, property
management

FinanceReal-estate financeCollection of debts
Asset management (REIT, funds)

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

25Real Estate Business

Future strategy for Real Estate Business (3)[Establishment of a business portfolio for promising fields]

Development

Present

ProfitEntry tonew fields
Impact of the change
in the market situation

Real estate
revitalization-related(renovation andconversion)

FutureDevelopment
Real estate
revitalization-related
New domain (realestate finance)

To continue careful procurement while emphasizing profitability until the adjustment phase of the real estate market

Renovation: Expansion of our marketing area and strengthening of our marketing structure ⇒ the largest share in eachregionConversion: Full-scale operation, considering the trends of reform of ways of working, demand for accommodation, etc.

Development of a scheme, including the acquisition of subsidiaries, etc. ⇒ Full-scale operation

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved26

Shareholder Returns
We aim to increase dividends stably and continuously, and achieve a
payout ratio of 30%.
(Yen)

Dividend per share

100.0

Initial estimate
Results

90.0

99.8

82.7 82.8 83.0

80.0

75.3
68.5

70.0

65.5

63.2

60.0

52.7

50.0

45.7

40.0
30.0

23.7 25.3

20.0
10.0

8.5

8.510.0

2012/122013/12

4.5

14.3

0.0
2014/122015/122016/122017/122018/122019/122020/12(forecast)*The forecast and dividend estimated are based on the information that the Company has and a certain assumption that is
considered reasonable. There is a possibility that the actual results may largely differ based on various factors.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved27

For More Information

Norio Nishihara
Public Relations and Investor Relations Department
Corporate Planning Division
WORLD HOLDINGS CO., LTD.

TEL: 03-3433-6005
E-MAIL: irinfo＠world-hd.co.jp
URL: http://www.world-hd.co.jp/
No information in this presentation is provided for the purpose of soliciting purchases orsales of our stock. Furthermore, opinions, forecasts and other information not based on
historical facts represent our judgments at the time this presentation was prepared. We do
not guarantee the accuracy of this information and may revise this information at any time
without prior notice. We and other providers of this information assume no responsibility
whatsoever for any losses incurred in association with the information in this presentation.

人が活きるカタチ

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved28

III. Reference

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

29

FY2020 Overall Quarterly Business Forecast⚫ We will Improve the management transparency and continue to disclose our financial
result forecast on a quarterly basis to help shareholders and investors makeinvestment decisions.
Net sales

Operating income
159,682

7,851

136,319
50,94634,355

4Q

4Q

4,730
35,13636,21330,61435,169

3Q

2Q

1Q

3Q

37,9882Q

35,578

1Q

4,212

4Q

1,516

3Q

639

4Q

1,561

3Q

2,366

2Q

1,582

162

1Q

539

2019/122020/122019/122020/12actualestimate

actualestimate

1Q

2Q

3Q

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

2Q

1Q

4Q

30

FY2020 Quarterly Business Forecast By Segment
Human Resources and Education Business

Real Estate Business

56,36988,33977,77425,573
20,634

Net sales

Information and Telecommunications Business

21,807

4Q

10,05219,806

3Q

23,11319,007

2Q

20,80318,325

1Q

3Q
11,652

18,8484Q
3Q

2Q
12,086
1Q

8,291

8,460

3Q

12,606

2Q

4Q

2,568

3Q

3,630

1Q

13,494

1Q

3,369

2,652

4Q

2,371

3Q

3,047

2Q

913

4Q

3Q

1,223

3Q

2Q

1,530

2Q

891

4Q

1,109

1,488

2Q

2Q
1Q

2,572

1Q
629

1Q

663

2019/122020/122019/122020/122019/122020/122019/122020/12actualestimate

actualestimate

actualestimate

actualestimate

153

6,006

4,126

27

1,689

4Q

1,346

3Q

1,193
949

2,391

2,662

1,460
1,846

2Q
1,031
1Q

4Q

736

3Q

760

2Q

1,251
-23
-527

1Q

3Q

2Q
1Q
4Q

147
804
512

4Q

3Q
2Q
1Q

137

90

4Q

132

13

3Q

29

3Q

90

3Q

111

2Q

323

2Q

296

2Q

-126

1Q

4Q

2Q

4
-88

-66

1Q

3Q

-95

1Q

-184
-49

2020/122019/122020/122019/122020/122019/122020/12actualestimate

actualestimate

actualestimate

actualestimate

2Q

3Q

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

1Q

4Q

2019/12

1Q

1Q

220

10

5,179

Segment
income

2,777

4Q

4,330

4,118

10,64442,082

4Q

12,344

Other

4Q

4Q

31