Reference Materials for Describing the Results
for the Term Ended Dec. 2015

February 10, 2016 (Wed.)
WORLD HOLDINGS CO., LTD.
JASDAQ of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0I. Overview of the Financial Results for the Term Ended Dec. 2015

P.2

II. Earnings Forecast for the Term Ending Dec. 2016

P.13

III. Measures to be Implemented

P.17

IV. Reference Materials

P.31

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved1

I. Overview of the Financial Results for the Term Ended Dec. 2015

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Summary of the Term Ended Dec. 2015
 All of sales, operating income, ordinary income, and current net profit marked a record high.
 In 3Q of 2015, operating income, ordinary income, and current net profit already exceeded
the full-year results for 2014.
 Sales increased for 6 consecutive terms since 2010, and profits grew for 5 consecutive
terms.

Units: million yen, %Results forResults forthe term

the term

ended Dec.

ended Dec.

2014

2015

YoY
ChangeInitialPct.

estimate

ChangeResult-revised
estimate ratio
Pct.
ChangeChangeNet Sales

68,82987,984

19,15427.8

85,6772,307

2.7Operating income

3,748

5,137

1,388

37.1

3,761

1,376

36.6

Ordinary income

3,722

5,133

1,410

37.9

3,652

1,481

40.6

Current net profit

1,992

3,810

1,818

91.3

2,127

1,683

79.1

Profit per share [yen]118.46228.05109.5992.5

126.50101.55

80.3

23.7

45.7

22.0

92.8

25.3

20.4

80.6

Dividend per share [yen]Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

3

Sales by Business Segment
 Significant increase in sales and profit for human resources and education
business and real estate business
Unit: Million
yen, %
Factory business

Human
Resources andEducationbusinessbusiness

Real Estatebusiness
Information andTelecommunicati
ons business

Real estate businessInformation andTelecommunications
business

To ta lInitial estimate

ChangePct.
Change26,910
1,801

1,981

7.9

-5.1

-116

-6.1

28,347
1,996-1,437

1,918

-195

-9.8

Profit margin

7.7%

6.7%

－

－

7.0%

－

－

8,430

9,547
989

1,117

13.3

3.1

290

41.5

9,260
769

287

699

219

28.6

8.3%

10.4%

－

－

8.3%

－

－

4,062

17.0

-2.0

70

15.8

Segment income

159

358

224.0

4,850
447

-95

Segment income

4,755
518

692

Profit margin

3.9%

10.9%

－

－

9.2%

－

－

2,679

1,292

48.2

-127

-3.1

145

199.8

4,100
169

49

29.4

Segment income

72

3,972
218

Profit margin

2.7%

5.5%

－

－

4.1%

－

－

574

-83

-14.5

-144

-22.8

Net Sales

Segment income

18

491
15

-2

-15.1

636
18

-3

-17.4

Profit margin

3.2%

3.2%

－

－

2.9%

－

－

Net Sales

15,545

104.5

20.0

1192

63.8

26,482
1,660

5,302

1,869

31,785
3,061

16239

Segment income

1,401

84.4

Profit margin

12.0%

9.6%

－

－

6.3%

－

－

12,608

-16.5

-12.3

-165

-97.2

Net Sales
Other businessChangeResults-revised estimate ratio

Pct.
Change24,928

Profit margin

Sales and Marketing

2015

YoY

Segment income

Net Sales
R & D businessResults for theterm ended Dec.

Net Sales

Net Sales
Technology businessResults for theterm ended
Dec. 2014

172

-167

-97.2

12,000170-1,477

Segment income

10,522
4-2086

Profit margin

1.4%

0.0%

－

－

1.4%

－

－

Net Sales

68,82919,15427.8

2.7-1,162

－

－

-2

－

Operating income

3,748

1,388

37.1

85,677-1,470
3,761

2,307

Elimination or Corporate

87,984-1,472
5,137

1,376

36.6

operating margin

5.4%

5.8%

－

－

4.4%

－

－

Net Sales

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

4Factory Business＜Sales composition by business segment and the number of staff＞
 The brand as a top company attracted various requests from various enterprises, and sosales have been healthy.
 Sales in the electrical, electronic, and semiconductor fields have been growing, due to thefavorable performance of smartphone business.
 Sales in the logistics field were favorable, and grew thanks to large-scale transactions.
Sales composition by business segment (%)

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

Operating income(Persons)(Million yen)

Up 7.9% 26,910

YoY(Based on monetaryamount)24,92818.5%
21.7%

20,000

3.3%
5.6%
9.4%
9.0%

10,00010,000(Million yen)

30,000＋52.2％＋12.5％

11.5%＋38.5％

11.2%-11.5％

2,000

8,000

Down
6.1%

2,500

4.6%
5.8%
6.5%

1,918

7,698

8,144
1,162

1,263
722

1,801

6,000

717

-24.4％

13.7%
17.5%

3,000

＋31.9％

1,500

4,000
5,718

1,000

6,260

2,000

14.3%
23.0%

24.4%

＋14.7％

500
02014 4Q

002014 4Q
Electrical & electronics
Machinery
Automobiles
Chemicals2015 4Q

2014 4Q

2015 4Q

Logistics
Semiconductors
Environment & Energy
Others2015 4Q

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

• The graph indicates domestic sales excluding
Taiwan.

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

5Technology Business＜Sales composition by business segment and the number of staff＞
 The transactions for undertaking software development in the field of information andtelecommunications (design and development engineering) increased.
 Sales in the field of semiconductors (production technology engineers) grew significantly.
 We started recruiting more new graduates and those who once joined another company.
Sales composition by business segment (%)(Million yen)

10,000(Million yen)

Up 13.3% 9,547
8,430

19.5%

8,000
5.1%
5.6%
6.8%

24.3%

6,000

4,000

Operating income

5.7%
6.0%
6.1%

15.6%

YoY
(Based on monetaryamount)

＋1.0％
＋6.1％
＋25.5％

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

989

1,000

(Persons)

Up 41.5%
800

1,669
1,552
1,500

699

215

215

600

705

1,000

＋8.3％

16.4%

2,000

658

400
500

2,000

47.4%

200

41.5%

2014 4Q

2015 4Q

Semiconductors

Infromation and Telecommunications

Constructions

Automobiles

Machinery

Others749

2014 4Q

2015 4Q

0＋29.5％

0679

02014 4Q

2015 4Q

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

* Retroactive adjustments have been made forsegment changes in the graph.

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

6

R&D Business＜Sales composition by business segment and the number of staff＞
 We received a large number of orders from chemical enterprises, and the pharmacovigilance (PV)business was healthy.
 The performance of DOT International is favorable, as it received orders at the beginning of the term.
 As for recruitment, we are so active as to start employing those who once joined another company inaddition to new graduates.
Operating income

Sales composition by business segment (%)

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

(Million yen)

(Persons)

6,000

600

1,000

5,000

Up 17.0% 4,755
4,062

4,000

YoY
(Based on monetaryamount)

518
500

769

800

77

686
24.8％

＋100.7％

14.5％

68

400

600

Up 224.0%
300

3,000
48.7％

400

＋0.8％

41.9％

200

2,000

692

618

159
200

1,000
36.8％

100

33.2％

＋ 5.7％

0002014 4Q

2014 4Q
2014 4Q

2015 4Q

R&D staff
Pharmeceutical/biotechnology

Chemical2015 4Q

2015 4Q

Clinical

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

DOT staff

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

7

Sales and Marketing Business＜Sales composition by business segment and the number of staff＞
 CB (dispatching sales staff) business: Profit improved significantly, as we increased direct transactions
with department stores and started targeting mass retailers.
 OCS(dispatching operators to places such as call centers): It has been healthy, since it was launched two
years ago.
 The light duty section grew, thanks to the synergy with the logistics section of the factory business.
Sales composition by business segment (%)

Operating income

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

(Million yen)

(Persons)

5,000

500

2,000

YoY
400
(Based on monetaryamount)

1,500

4,000

3,000

3,972

Up 48.2%
2,679

59.8％

968

1,174

300
+ 19.5％

218
200

2,000

100

1,000

1,000
707

Up 199.8%

75.0％

40.2％

1,854

500

72

886
467

+ 141.0％

25.0％

0

0
2014 4Q
OCS

2015 4Q

02014 4Q

2015 4Q

CB

2014 4Q

2015 4Q
OCS

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

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

8Real Estate Business＜Sales composition by business segment and the numbers of units supplied and to be transferred＞
 The performance in the Tokyo metropolitan, Tohoku, and Kinki areas was firm. The real estate developedby ourselves, etc. as well as condominiums contributed.
 The renovation business of Mikuni Sangyo, which joined our corporate group in the previous term, grewsteadily.
 Entry to the prefabricated house and rental business fields through M&A
 “Branz Yokohama-bashamichi Residential” received the Good Design Award.
Sales composition by business segment (%)

Operating income

Number of supplied and un-transferred properties(Million yen)

(Million yen)(No. of properties)

35,0004,000

600

31,78530,00020,000＋ 1,294.6 ％

3,061

500

2,000

1,869

300
205

15,00075.3%

200＋ 56.4 ％

100

5,000
0

0
Development-related

2015 4Q

337

02014 4Q

2015 4Q

Renovation-related1702014 4Q

129
2015 4Q

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

203.9

231

151

145

79.9

86

2014 4Q

2015 4Q

24
11

1,000

96.5%

2014 4Q

466

400

Up 63.8%

3.5%

10,000Un-transferredproperties

3,000

Renovation-related

15,545

Suppliedproperties(Accumulated)

Up 104.5%
24.7%

25,000

YoY(Based on monetaryamount)Detached houses

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

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

9Information and Telecommunications Business＜Variations in sales and the number of stores＞
 Store renewal progressed through active investment, decreasing unprofitable stores.
 We concentrated on the development of excellent stores that can win the support from bothcarriers and customers.
 We cultivate new needs with the original shop “Window for Cell Phones.”
Operating income

Sales for each target(Million yen)

(Million yen)

20,000

200

172
YoY
(Based on monetaryamount)

Down
16.5%

15,000150

12,6089.6%

10,000

5,000

Down
97.2%

10,522
10.2%-12.0％

100

89.8%-17.4％

50

90.4%

4
0

0
2014 4Q

2015 4Q

Individual

Corporation2014 4Q

2015 4Q

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

10

Financial Condition B/S The real estate to be sold this term increased.
(Million yen)

Total assets

56,32960,00045,000Current
assets46,08750,402（+8,796）

・Increase in notes and accounts receivable due to sales growth: 1,056 million yen
・Increase in real estate for sale:
6,376 million yen
50,40230,00041,60615,0000(Million yen)

4,480

5,927

End of Dec. 2014

End of Dec. 2015

Fixed assets

Current assets

56,32960,00045,000Liabilities

Total liabilities/net assets

44,432（+6,772）

・Decrease in accounts payable for realty businesses:-1,534 million yen
・Increase in short-term debts (funds for buying real estate for sale): 5,074 million yen
・Increase in long-term debts (funds for buying real estate for sale): 2,586 million yen

46,08732,91330,00015,000029,032
Net assets

11,5198,627
8,426

11,897（+3,470)

・Increase in retained earnings:

3,416 million yen

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

11

11,897

End of Dec. 2014
End of Dec. 2015
Net assets Fixed liabilities Current liabilities

Cash Flows Operating and investment CFs decreased 4,437 million yen and 2,075 million yen, respectively.
Financial CF increased 6,481 million yen.
(Million yen)

12,000Operating CF

Operating CF

Investment CF Financial CF・ Net income before taxes and other adjustments: 6,069
million yen
・ Increase in accounts receivable: -700 million yen
・ Increase of real estate for sale: -5,682 million yen
・ Decrease in accounts payable: -1,912 million yen
・ Payment of corporate income tax, etc.: -2,405 million yen

10,000-4,437
8,000
Cash andcash equivalents
at the beginningof the term

6,481

Cash andcash equivalents
at the endof the term

6,000

10,804

10,769-2,075Investment CF
・ Income from the collection of loans: 512 million yen
・ Expenditure for the acquisition of new consolidated
subsidiaries: -744 million yen
・ Expenditure for loans: -1,101 million yen
・ Expenditure for the acquisition of intangible fixed assets:-358 million yen

4,000

Financial CF
2,000・ Net increase in short-term debts: 3,213 million yen
・ Income from long-term loans: 7,765 million yen
・ Expenditure for repaying long-term debts: -4,084 million yen
・ Payment of dividends: -400 million yen-34 million yen
0

End ofDec. 2014

Operating CF

Investment CF

Financial CF

End of Dec.
2015

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

12II. Earnings Forecast for the Term Ending Dec. 2016

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

13Summary of FY2016 Business Forecasts
 Sales and profits are estimated to mark record highs.
 Since tax benefits ended in the previous term, current net income is estimated to increase
0.1%.

Unit: Million yen, %Results for the

Forecast for theterm ended

term ending

Dec. 2015

Dec. 2016

Net Sales

87,984

Operating income

5,137

Ordinary income

5,133

Current net income

3,810

EPS (yen)
Dividend per share (yen)228.05
45.7

YoY
Change100,111 12,127
6,275 1,138
6,153 1,019
3
3,814
228.27
68.5

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

Pct. Change

13.8
22.2
19.9
0.1

0.2

0.1

22.8

49.9

14

Business Forecasts by Segment
Unit: Million yen, %Net Sales
Fa cto ry b u si n e ss

Segment income

Profit margin

Human
ResourcesandEducationbusiness

Te ch n o l o g yb u si n e ss

Net Sales
Segment income

Profit margin
Net Sales
R &D b u si n e ss

Segment income

Profit margin
Sa l e s a n d Ma rke ti n g
b u si n e ss

Net Sales
Segment income

Profit margin
Net Sales

Oth e r b u si n e ss

Segment income

Profit margin

RealEstatebusiness
Information andR e a l Esta teb u si n e ss
In fo rm a ti o n a n d

Telecommunication Te l e co m m u n i ca ti o n ss businessb u si n e ss

Net Sales
Segment income

Profit margin
Net Sales
Segment income

Profit margin
Net Sales

To ta lElimination or corporate
Operating income

Operating margin

Results for the term ended
Dec. 2015

Forecast for the term
ending Dec. 2016

YoY
ChangePct. Change

26,91032,571

5,661

21.0

1,801

2,316

515

28.6

6.7%

7.1%

－

－

9,547

10,699

1,121

11.7

989

952
8.9%
5,650
565
10.0%
5,525
296
5.4%
547
26
4.8%
37,092
3,921
10.6%
8,056
200
2.5%
100,111-2,003
6,275
6.3%

-36

-4

－

－

894

18.8

47

9.1

－

－

1,552

39.1

77

35.5

－

－

56

11.4

10

70.3

－

－

5,307

16.7

860

28.1

－

－

10.4%

4,755
518
10.9%

3,972
218
5.5%

491
15
3.2%

31,785
3,061
9.6%

10,522
4
0.0%

87,984-1,4725,137
5.8%

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved-2,466-23

195

4,054.5－－

12,127

13.8

－

－

1,138

22.2

－

－

15

Shareholder Returns

We aim to set payout ratio at 30% in the next term.
(Yen)

Dividend per share

68.5

70.0
60.0
50.0

45.7

40.0
30.0

23.7

20.0

10.0

4.5

4.5

4.5

FY2009FY2010FY20118.5

10.0

FY2012FY20130.0
FY2014FY2015FY2016
forecast* The forecast and dividend estimates are based on the information that the Company currently 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 Reserved

16III. Measures to be Implemented

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

17Key Initiatives for Fiscal 2016■

Sales by Segment(100M JPY)
1 ,20087.9 billion JPY 100.180billion JPY

Accelerate Investment for Future
Growth

105

800

370
317

400

549

456
0

FY2016
201 6/12
Information
and Telecommunications
business (Estimate)
Inform ati on Communicati
on
FY201520 15/12

Human Resources andEducation business・Secure HR and create jobs
・Expand business areas, M&A

Real Estate
RealEstate business
HR & Education
Human
Resources and Education business■

Real Estate business

Operating Income by Segment

・Optimize asset portfolio(100M JPY)
120

80

5.1 billion JPY

6.2 billion JPY

0.04

2
39

30
40

35

41

0
2015/ 12FY20152 0 1 6 /1 2
FY2016

I nf orma tion Commanduni cat Telecommunications
ion
Information
business (Estimate)
Re a l E stateRealEstatebusiness
H R & E duca tion
Human
resources and education business・Strengthen new businesses

Information andTelecommunications business・Build network of excellent storesand establish new business・M&A

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

18Key Initiatives for HR and Education Business - (1) Business
Environment and Our Strengths
Background
Manufacturing Companies
The BOJ’s business conditions DI for large manufacturers (announced in Dec. 2015) mentions that few industries
are projecting growth, but HR demand is strong after last term investments and outsourcing is accelerating.
⇒Top quality staff and a high level of expertise is required to undertake invested technologies.
Revised Worker Dispatching Act
Any companies unable to adjust to the revisions, such as providing opportunities for career progression andimplementing systems for contract and employee information management will face a number of issues.
⇒Improve value as a dispatch company in line with revisions

Our Strengths

1

One Stop Service2

Staff Registration
System3

Technical Education
Facilities

Development of a value-added highquality staffing service able toprovide support across the entire
manufacturing supply chain

Mass storage of personnel
information allows high employment.
Costs minimized through use oforiginal site “JOBPEPEAR”.

Our affiliate, Advan, provides training
across an extensive range of skills
sought by our clients.

Strength in manufacturing
fieldsOver 24,000 registeredpersonnel

Committed to high quality
staffing

4

CareerPath

Providing for the work style and development needs of ourcandidates across all industries. Offering an environment where
they can realize their career objectives and future aspirations.

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

No. 1 company to work for

19

Key Initiatives for HR and Education Business - (2) Future Strategies■

HR and Education Business Sales(100M JPY)

Strategies to Increase Personnel

54.9

750

45.6

billion JPY

billion JPY
500

4

Improve Employment

5

55

47

・Expand personnel base

56

39

⇒Expand number of registered personnel⇒Approach according to candidate attributes

106

95
250

Improve Retention
325

269

・More contract locations
・Comprehensive training

0
FY2015FY2016 (Estimate)

Factory businessTechnolog y business

R&D bu sin ess

Sale s & Marketin g b usin ess

Job Creation

Other

■

・Expand business areas

HR and Education Business Operating Income(100M JPY)

75

50

・Relax working conditions

4.1

billion JPY

billion JPY

25

18

2

0.2
5
9

⇒Enter new markets, and diversify channels forthe employment⇒Work with clients to increase opportunities

Cooperation with External Bodies

3.5
0.1
5
9

⇒More personnel in long-term employment⇒Plan for career progression

・Promote joint enterprises ⇒Practical approach through HR alliances
・M&A

2

Future Key Businesses

230FY2015FY2016 (Estimate)

Factory businessTechnology business

R&D business

Sales & Market ing business

Logistics (Factory, S&M)

Repair (Technology)

Clinical Trial (R&D)※S&M: Sales and Marketing

Other

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

20Key Initiatives for HR and Education Business - (3) Improvement of
Employment and Employee Retention Rate
Workers to be increase by:

改正の目的

3,560

In
detailFactory Business・・・・・・・・ 2,200
R&D Business・・・・・・・・・・ 200

Measures for Improved Retention

identify ideal candidates forjobs through collaboration

Various employment
promotion methods focusing
on candidate attributes

Maximum use of personnel

Marketing of personnel

Improve employment rate by
reducing lost opportunities andincreasing number of jobs

Adoption for considering attributes
and characteristics
Change focus from job to personnel

Create more jobs andCurrent personnel base

Employee

Diverse approaches

Long-term employment from increased contract and mid-long term projects

Offer work environments for future development
Offer challenging work environments where personnel can map out their futures at
the time of their employment

Increase investment in management
Recruit and train managers

HR
Development

Segment collaboration

Increase contract and long-term projects

SystemExpanded personnel base

Management

Environment

Measures for Improved Employment

Technology Business・・ ・ ・・ ・ 200
Sales and Marketing Business・・・・960

Offer comprehensive employee support
Upgrade management based on communication with employees

Create clear career development plans
Create comprehensive training programs based on clear careerdevelopment plans for each segment

Maximize employment numbers and reduce resignations by implementing
both these measures - improved employment and retention
No. employed
The number of workers will increase
through all the measures.

Improvement of
Employment
Maximize the employment
numberImprovement of
Employee Retention
Rate
Reduce the numberof employment
by reducing the numberof resignations

Increase the number of
employment to improve our
employment

Increase through improvement of
employment
Increase through improvement of
employee retention rate
Current workers stayed through thepast measures.

Employment duration

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Outcome from improved retention

21

Key Initiatives for HR and Education Business - (4) Job Creation(Joint Collaboration)
Create new opportunities for employment by bringing a diverse range of personnel and clients
together through our one stop service. Future high growth opportunities to be driven by
expansion into new areas and jobs.
Candidates
Researchers
R&D Business(1) Collaboration: Increase choices
through personnel exchanges

Increase employment options
Possibility to challenge other areas throughcareer changes from personnel exchanges.

Monitoring staff (DOT)

PV (R&D)
Design and development
engineers

Technology
Business

Plant engineers

Develop new areas
Develop new areas where the skills of
personnel can be applied to increasebusiness opportunities for each segment
and a higher number of positions available.

(2) Collaboration : Develop new areas through inter-segment
collaboration

Factory Business

Plant technicians
Logistics staff(3) Collaboration : Increase the numberof employment through inter-segment collaboration

Diverse channels for matching
personnel to jobs
Increase employment opportunities by
proposing other job possibilities topersonnel registered with other segments.
Increase the number of employment.

Sales and Marketing Business
New employment areas fromcollaboration

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22Key Initiatives for HR and Education Business - (5) Expanded Areas andPossibilities
Strategic expansion of the one stop service in the manufacturing industry will create
more employment opportunities, leading to better employment (improvement of
employment and employee retention rate)

1

2

3

4

Diverse offering of workplaces
for personnel means more job
choiceDevelopment of new job areasfrom segment collaboration

Diversify channels for finding
job match through segment
collaboration

Capture positions which
demand a high level of knowhow and a high skill-set

Able to offer various
career development
plans in existing job
areas

High

Know-how, skills
New areasfrom personnel
exchange

Low

New
Existing

Existing

Existing

Existing

Existing

Existing

Expand work opportunities and recruitment channels
Employees: Various career types

Manufacturing
one stop service

Candidates: Approach according to different aims

Employees
Candidates

Employees
Candidates

Employees
Candidates

Employees
Candidates

R&D

Technology

Factory

S&M

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23Key Initiatives for Real Estate Business- (1) Business Environment
and Our Strengths
Background
Overview
With Japan’s population set to fall after peaking in 2015, demand is expected to shrink. Also, constructionrelated material and labor costs are on the rise due to reconstructions, demand for the Olympics, andeconomic recovery, first-time buyers are less inclined to purchase property. ⇒ Maintain out competitive
advantages by diversifying properties and services appropriate for the market.
Vacant Housing Problem
An increasing number of vacant houses is impeding regional revitalization. This issue is expected to be further
increased by the declining population and the accelerating regional depopulation. ⇒Vitalize enterprises, whichhave results in and pipelines with regions, through implementation of region-led countermeasures.

Our Strengths
Development

Renovation

Housing Units

We expand business through optimal sized
specialized condominiums in major cities

We roll out its business nationally tomajor cities, through Mikuni Sangyo

We roll out construction, sale and rental
mainly in the Tohoku region due to highreconstruction demand

1 Refined marketing and info gathering

1 Success history and high reliability

1 Unique collapsible housing units

Strategic property purchases throughto sale2 Planning of high-end properties
Planning and sale of custom-built
condominiums

Roll-out nationally

Trust and know-how accumulated
over 35 years

2 Strong distribution network

All-in-one service from procurement ofquality property to design and renovation

We are able to cut transport costs
through collapsible design

with existing business
2 Synergy
Better productivity from collaboration withexisting businesses and more sales
channels through different locations

Implementation of region-appropriate infrastructure projects across Japanand its business results in the region

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24Key Initiatives for Real Estate Business- (2) Future Strategies■

Real Estate Business Sales

37.0 billion yen(100M yen)

31.7 billion yen

Strategies
Optimized Asset Portfolio
We minimize risk of purchase by ensuring good balance between size of business,
payback period and area. ⇒Increase independence of real estate business.

Condominium
Rather than competition over supply, business development on an
appropriate scale and expansion of target area to grow with minimum
investment risk. ⇒In addition to first time buyers as our main customers,
add second time buyers (particularly elderly) to current main customers
to expand a lineup of properties.
(Estimate)■

Real Estate Business Operating Income

3.9 billion yen(100M yen)

Renovation
We reinforce property portfolio with Japan-wide roll-out of Mikuni
Sangyo’s services, and full utilization of existing pipelines. ⇒The
Renovation will become a second pillar providing growth for the Real
Estate business.
Reinforce New Businesses

3.0 billion yen

With Space House and Unitex, which became a subsidiaries of our company
last year, we promoted to expand our business while clearly defining ourposition in the market. Now we need to strengthen our supply capabilities andexpand our sales channels.

Future Key Businesses
Renovation

Housing Units(Estimate)

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

25Key Initiatives for Real Estate Business- (3) Asset Portfolio Optimization
We always pursue an optimal real estate portfolio, based on changes in thebusiness environment, such as consumer needs, market conditions andpurchasing environment, in the yearly administration of each business
Real Estate Business
Development

Basic
PolicyRenovation

We achieve good balance between lot and property portfolios by implementing
strategies centered on both condominiums and renovations
Condominiums

Lot

Balanced purchase

Renovations

Property

Timely revisions to real estate portfolios based on business environment and strategies
Condominiums

Lot

Portfolio adjusted based on strategy

Renovations

Property

We continue sale of condominium lots and increasepurchases for mainly renovations business

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26

Key Initiatives for Real Estate Business- (4) Reinforce the Housing
Units Business
Market Analysis

Business Expansion
Strategy

Prefabricated housing market
Size: JPY 700 billion

Increase Supply

Residential, plant, warehouse, etc.
(custom design)

Utilize World Intec’s manufacturing knowhow to improve production site and adjust
supply structure.

+

Phase 2Further expand into prefabricatedhousing market (JPY 700 billion)

Expand Sales Channels
Use real estate network to expand rental
and sales pipeline projects.

Housing Units
Size: JPY 110 billion
Temporary build (units)
2 companies control around
40% share, Space House andUnitex together rank 6th in theindustry

Phase 1
Capture JPY 10 billion in thismarket (apprx. 10% share)

Strengthen both supply andsales to capture market share.

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

27Key Initiatives for Information and Telecommunications Business- (1) Business Environment and Our Strengths
Background
Diversified mobile phones business
Competition is expected to intensify due to new players coming to the mobile communications market, such as MVNOs,
which is in a saturation state that the mobile communication penetration rate is 138.5% at the end of March 2015.
⇒We continue projects for reorganization and consolidation of business.

Stores
A development of excellent stores become the largest pipeline for carriers, so we need excellent store management run
by high-quality staff⇒We improve ability to capture customers through training of high-quality staff and proactive store investment.

Our Strengths
No. 1 sales
network in
Kyushuproduct
2 Diverse
range

3 Formidable
capital strength

Expand stores in Kyushu(Fukuoka, Saga, Nagasaki,
Oita, Kumamoto, Okinawa)

Consumer: SoftBank,
Y!mobile, distributorshipsupport, partnerships)

Debt-free management

Corporate: LED lighting, au,
SoftBank, networks,
communication services(store purchases)

1

34 directly-managed stores, 70
distributorships (as of the endof Dec. 2015)

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Ability to fund M&As

28

Key Initiatives for Information and Telecommunications Business- (2) Future Strategies■

Information and Telecommunications Business Sales(100M yen)150

10.5 billion yen
100

Strategies

8.0 billion yen

Services offered by high-quality hospitable staff, stores with an inviting
atmosphere, and good management are needed in order to increase our
excellent store network. Investment in stores themselves and personnel willallow us to capture customers and carriers.

50

New Business

0
FY2015
2015/122016/12FY2016(Estimate)■

Excellent Store Network

Information and Telecommunications Business
Operating Income(100M JPY)

We introduce new product ranges in existing stores by utilizing our largest store
network in Kyushu and our BtoC know-how. We challenge new business areas
with new products.

Expansion Through M&A
We mostly completed last year’s plans to slim-down the business through thescrapping and building of store network mainly in Fukuoka. Now we need touse our advantageous position in Kyushu to expand our business in the area.
⇒Buy-up distributorships through active M&As.

4 million yen
FY2015200 million yen

Future Key Businesses
Store Business

FY2016(Estimate)

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3. Outline of Mid-term Management Plan (2012 - 2016)

Target(Term ending
Dec. 2016)

Group sales of JPY 100 billion!

Basic Strategy

Mid-term Plan

●Concentration of resources inhigh-growth markets

Term ended
Dec. 2014(Results)

Term ended
Dec. 2015(Results)

Term ending
Dec. 2016(Plan)

68.8

87.9

100.1

3.7

5.1

6.2

ROE

30.3%

41.8%

30.8%

Capital to Asset Ratio

16.1%

19.2%

23.2%

Dividend Payout Ratio

20.0%

20.0%

30.0%

Sales (JPY billion)
Operating Income (JPYbillion)●Collaboration and synergy
across GroupWe build an optimal portfolio to further increase
growth and profitability
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30IV. Reference Materials

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1. Industrial and Market Trends (1) Environment Surrounding “Human
Resources and Education Businesses”

Amendment to “the Worker Dispatch Law” ** A bill for partially amending the law for securing the appropriate operation of worker dispatch business and protecting dispatched workers, etc.

Purposes of the amendment
Promotion of the use ofworker dispatch systems

Economic
vitalization
Stabilization of the positionsof dispatched workers

Employment
stabilization

Current situation

Proposal for revisions● Regulations based on 26 specialized● Abolishment of the 26 specialized businesscategories● The dispatched worker employment period
is up to 3 years for each “person.”● General dispatch based on the system ofapprovals and licenses, for all cases

business categories● The dispatched worker employment
period is up to 3 years for each“business category.”● General dispatch based on thesystem of approvals and licenses
Special dispatch based on the
notification system* New criteria for approval
Reference asset amount: 20 million yen × No. ofbusiness establishments
Cash on hand and at banks: 15 million yen × No.
of business establishments

Competitions are getting fierce, energizing the market.
Favorable effects on our company
As a leading company in the business field, we make efforts to improve the value of the field of human resources by engaging in our business activities
while being deeply aware of the social impact of our businesses..

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1. Industrial and Market Trends (2) Environment Surrounding the “RealEstate Business”
Ministry of Land, Infrastructure, Transport and Tourism:
Round table for energizing the used housing market

Current
marketsituation

Background

Awareness of problems• The number of households reached apeak in 2015, and has been decreasing.
• Problem of the increase of vacant housesin the countryside• The augmentation in the ratio of housing
cost among young people is a factor in the
decline in birthrate.

• Due to the age depreciation of buildings, appraised asset value
became much lower than investment amount.
(Example: a household of over 2 residents aged over 50 has an unrealized loss of 20 million yen on average.)• The ratio of existing houses to total housing distribution amount islow. (Example: 13.5% in Japan; 70-90% in Europe and the U.S.)

Market trend in the Tokyo
Metropolitan Area

As Tokyo Olympics andParalympics are to be held in
2020,

Land and construction cost are
skyrocketing
Governmental
measures

Governmental
goals

Improvement inbuilding evaluationand diffusion in themarketTo develop an
environment for
Financial measures forpromoting theenergizing the used
increase of highhouse market
quality housing stocks
and their distribution

Vitalization of therental stand-alone
house market

Collaboration withlocal measures

To double the scale of the used house and remodeling market
10 trillion yen in 2010

The prices of new apartments
are now at the level first-timehouse buyers cannot afford tobuy.
Renovated used houses are
attracting attention.

20 trillion yen in 2020

The age in which the technology for avoiding risks to the maximum degree will cause gaps in competitivenessFavorable impact on our company
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved33

1. Industrial and Market Trends (3) Environment Surrounding “Information
and Telecommunications Businesses”● Decrease in the sales of cell phones at shops
As the demand for smartphones has been already satisfied, sales are sluggish, and the sales of low-cost smartphones are
growing. The sales promotion budget of carriers has been revised. (Reduction in cashback amount)● Outline and major advantages of MVNO
【Outline of MVNO】
3,500

Consumers

3,045[10,000 lines]

3,000
2,500

Rapid growth of
the MVNO market

Music

Video
Websitebrowsing

2,000

SNS

Telephone

1,480
1,500

1,037
1,000
500

MVNOs

643
254

379

0

2010/3 2011/3 2012/3 2013/3 2014/3 2015/3

To offer various mobile
communications services
by utilizing the merits of
MVNOs.

To rent the infrastructure for wirelesscommunications

Mobile network operators
Source: “Variation in the scale of the Japanese MVNO market” by MM
Research Institute

Major advantages of MVNO
● Price competitiveness(attractive charging
system)● Diversity of services(a broad range ofoptions)
・Data communications-related
・Telephone-related● MNP (mobile number
portability) system
available※MVNO: Mobile Virtual Network Operator

Further growth due to the start of “SIM Free” on May 1, 2015
* The Ministry of Internal Affairs and Communications enacted the “Guidelines for SIM-unlocking.”

New business chances
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved34

2. Real estate business: Mikuni Sangyo Co., Ltd.
Profile of Mikuni Sangyo Co., Ltd.

Nationwide network for renovation business
Headquarters

1st floor of Mitsui Seimei Kitakyushu
Kokura Bldg., 12-4 Konya-machi, Kokura
Kita-ku, Kitakyushu-shi

Date ofestablishment

1981

Capital95 million yen

Business
contents

No. ofemployees

Real estate brokerage, residential landdevelopment, condominium sale, sale ofready-built houses, rental housing
management, agency business for planningand sale148 (total in the corporate group)

Network

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35

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

03-3433-6005

E-MAILirinfo＠world-hd.co.jp

URL

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

No information in this presentation is provided for the purpose of soliciting purchases or sales ofour 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 theaccuracy of this information and may revise this information at any time without prior notice. We
and other providers of this information assume no responsibility whatsoever for any losses
incurred in association with the information in this presentation.

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36NotesCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

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NotesCopyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved38

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

39