Interim
Business Report 2020
To Our Stakeholders
Contents

January 1

01 History

June 30, 2020
07 Business Segment Overview

02 Interview with the President

09 Consolidated Financial Results

05 Close-Up

10 Corporate Data

Creating the “Ways We Live”
Our operations are guided by the basic philosophy to contribute to the people and culture of
the world through businesses. We have a firm commitment to being a source of many types of
workplace environments that enable people to lead fulfilling lives.
All activities are centered on our social mission of creating the “ways we live.”

Securities Code: 2429

Sustainability management
encompassing many business units
in order to achieve our group missionof creating the “ways we live”

Human Resources and Education
Business
Subcontracting and work dispatching services
that span a broad spectrum of market sectors
primarily involving manufacturing: R&D, designs
and development, production, logistics, sales,
after-sales services and other activities

The World Holdings Group consists primarily of a pure holding company and 37 major affiliatedcompanies. For the sustainability of business operations, rather than relying on a single core
activity, we have several core businesses: Human Resources and Education, Real Estate, andInformation and Telecommunications. This diversity creates a stable and well-balanced foundation
for the Group. We believe this is the most important aspect of our management. We are determined
to take our mission of creating the “ways we live” to an even higher level in order to continue
supplying workplaces where an even larger number of people can grow and achieve their goals.
Our goal is to build a base for business operations that is not vulnerable to changes in theeconomic and social climate so that we can continue to aim for consistent and sustained growth.

Growth andDiversification
The stability and balance of thebusiness operations of World Holdings
date back to the 1981 establishment of
a diversified real estate company
called Mikuni Sangyo (now MIKUNICo., Ltd.) by Eikichi Iida, the current
chairman and president of World
Holdings. The failure of many realestate companies when Japan’s asset
bubble burst reinforced Mr. Iida’s
commitment to stability and balance.
As a result, a number of otherbusinesses have been added during
the following years.

Real Estate Business
Real estate development andrenovation as well as the real estate
finance businesses

Operation and management ofagricultural parks, operation of
personal computer schools, website
production, and other services

Net sales

April 2010

Entered the Information andTelecommunications BusinessEntered the Real Estate Businesse-support, Inc. became a member ofthe World Holdings Group

Established WORLD RESIDENTIAL Co., Ltd.

The first step was the launch of a temporary
staffing service, which was a relatively
unknown business in Japan at that time, and a
subcontracting service, another relatively new
business scheme. WORLD INTEC (currently
the Factory Staffing Business) was establishedwith the goal of helping manufacturers inJapan to become cost competitive again as
well as to provide stable jobs.

June 1997
Started the Technology
Staffing Business

April 2005
Started the Sales &Marketing Staffing Business

68,82948,76734,851
9782006/12

1,345

2007/1229,094

32,109389

344

2009/122010/12February 2005

53,00756,450136,319

7,851

1,223

2,120

2012/122013/12

94,334
4,730

3,748

588
2011/12

2014/122015/12Company name changed to WORLD HOLDINGS CO., LTD. and shifted to a holding company structure

01

7,370

5,137

July 2014

Listed on the JASDAQ Securities Exchange

127,147

37,892

1,089

2008/12

159,682(forecast)
142,894

7,407

87,984

February 2002

46,498June 2019
Started the Real Estate
Finance Businesses

7,064This crisis had a severe negative impact
on the Human Resources Business, but
performance was supported by the
Information and Telecommunications
Business, the Group’s second corebusiness, leading to steady growth in thefollowing years.

Started the R&D
Staffing Business

Operating profit(¥ million)

Started a real estate business to take advantage
of opportunities created by the big decline in thenumber of real estate companies in Japancaused by the global financial crisis

Global financial crisis

Sales & Marketing
Staffing Business

Operation of mobile phone stores aswell as provision of solutions forcorporate clients and telemarketingbusiness

December 2005

2008

R&D Staffing
Business

Other Businesses

February 1993

(formerly WORLD INTEC CO., LTD.)

Technology
Staffing BusinessInformation andTelecommunications BusinessStarted the Human Resources andEducation Business
EstablishedWORLD HOLDINGS CO., LTD.

Factory Staffing
Business

2016/122017/122018/122019/12

March 2016

Listed on the Second Section of
the Tokyo Stock Exchange

June 2016

Moved to the First Section of
the Tokyo Stock Exchange

2020/12Interview with the President

Stable and sustained growth backed by a diversified businessportfolio in order to contribute to society by enlarging thebreadth of activities for creating the “ways we live”
The World Holdings’ diversified business portfolio centered on stability and balance limited the negative effects of COVID-19 on
results of operations. Although the outlook remains unclear, all members of the group are dedicated to leveraging key strengths
to achieve sustained growth. We asked Chairman and President Iida about performance in the first half of 2020 and
expectations for the entire year.

1H FY12/2020:
Overview of Business Activities
1H net sales and profits increased YoY in the Human
Resources and Education Business, which has implemented ahuman resources training strategy and structural reforms, andin the Real Estate Business, which used a sales strategy thatmatched current market conditions. Furthermore, operating
profit in these businesses was higher than planned.

Eikichi Iida
Chairman and President

During the 1H FY12/2020, the global COVID-19 pandemic
restricted business activity and altered how people do theirjobs. Overall, this crisis has produced enormous changes andcreated challenges on an unprecedented scale for companies.
Our diversified business portfolio, which is our key strength,
succeeded at stabilizing our operations and spreading out risk
during this difficult period. As a result, we were able tominimize the impact of this crisis. Our sales fell short of theforecast but operating profit was higher. And both net sales
and profits increased YoY.
More information about COVID-19 and upcoming actions
is in the “Close-Up” section on page 5.

02

Overview of the Human Resources and Education Business
The suspension of factory operations at some client companies
in the automobile components and other industries due to
COVID-19 had a negative effect on the performance of the
Factory Staffing Business. However, the 5G mobile
communications and semiconductor sectors performed well.
Logistics was another source of strength because of purchasesby people who are staying home for safety. Overall, theseareas of strength generally offset categories that were down.
To prevent the spread of COVID-19, we avoided as much as
possible recruiting and placement activities that move people
from one region of Japan to another. We also increased therecruiting of people locally and the use of consortiums forsecuring the people we require.
In the Technology Staffing Business, working hours of people
on assignments declined as more people began working fromhome. In addition, there were delays in the placement ofpeople on assignments. However, the semiconductor sector's
performance was strong. In addition, profits benefited from theability to charge higher fees because of higher skills of ourpeople and their placements into jobs at a higher level due totraining programs, which is one of our priorities.
The performance of the R&D Staffing Business was
supported by higher demand in the CRO category for clinicalresearch to develop new drugs associated with COVID-19. But
market conditions made it difficult to capture new orders. In theresearch personnel category, there was an increase in demandfor people for jobs involving analysis and pharmaceuticals
because of an increase in distribution of generalpharmaceuticals. Training programs to upgrade the skills of
R&D staffing personnel and measures to shift skills to fields
with strong demand contributed to profits growth.
The Sales and Marketing Staffing Business is performing welland has become profitable. The main reasons are the highlevel of staffing orders mainly for light duty jobs, generalmerchandise stores and call centers and the success ofstructural reforms which we have implemented for some years.
As a result, sales were ¥38,922 million, up 4.3% year on
year, and segment profit was ¥2,228 million, up 4.0%.
Overview of the Real Estate Business
In Japan, prices of real estate have been high for a long time.
Due to this prolonged bubble in the real estate market, wehave retained a cautious stance during the past several years
about purchasing properties. Activities continue forestablishing a base for asset management and other financial
businesses involving real estate. We also made progress withpreparations for upcoming activities based on the outlook forsignificant changes in the real estate business climate.
In the core real estate development category, COVID-19 had
a negative effect on condominium procurement and sales
activities. Despite this challenge, sales of land for business use
exceeded our plan. The main reasons were actions that began
several years ago to prepare for market fluctuations and theuse of sales activities that reflected current market conditions.
In the renovation field, growth temporarily slowed mainly
because suspensions of business operations of major brokers
due to COVID-19 reduced the size of our sales network.
Sales were ¥25,541 million, up 25.3% year on year, andsegment profit was ¥1,835 million, up 49.5%.

Outlook for 2020
Based on the limited negative effects of COVID-19 on our
performance in 1H FY12/2020, we have made no revisions to
the forecast for 2020.
We thought the effects of COVID-19 would decline for a while
after Japan lifted the state of emergency at the end of May.
However, the number of infections started climbing again in
July and the outlook for the crisis is still uncertain.
There are no changes to the 2020 forecast we announced on
February 10 because COVID-19 had only a small effect on our
1H FY12/2020 performance. Furthermore, I have no intention at
this time of revising the ongoing New Medium-termManagement Plan 2021 Rolling Plan. Nevertheless, if thenumber of infections increases and Japan declares a state of
emergency again, client companies may revise productionplans in the 2H FY12/2020 and take other actions. We willcontinue to be vigilant for any new effects of the COVID-19
crisis on our client companies and make an announcement
promptly if there is a need to change the FY12/2020 forecasts.

Message to our stakeholders
I would like to reaffirm to our stakeholders our strong
commitment to using out stable business operations supported
by our diversified business portfolio, which is our key strength,

There are definitely reasons to be worried about the effects of
the COVID-19 crisis on the performance of companies in manyindustries and on the overall economy. However, I do not havea pessimistic outlook.
For many years, we have relied mainly on internal growthrather than making frequent use of M&A deals as many of ourcompetitors did. This policy of ours has generally resulted infaster top-line growth at these competitors. But we have used
the past years to build a stable foundation for our operations byassembling a portfolio with multiple businesses and industries.
In the Human Resources and Education Business, which is oneof our core businesses, we have been building a base forbusiness operations that is not vulnerable to changes in market
conditions. For example, we are using a “co-sourcing” model inwhich we serve as a partner in many ways for manufacturers inJapan. These activities have given us sources of earnings thatare reliable even during this crisis.
WORLD HOLDINGS Core Business:
Human Resources and Education- Outlook for Human Resources Service Sector andInitiatives for More Growth When the economic outlook becomes uncertain and markets
shrink, executives of companies start to look for ways to utilize

Overview of Consolidated Financial Results for 1H FY12/2020
1H FY12/2019
Results (¥ million)

Human Resources andEducation Business

More information about business segments is on page 7.

in order to grow consistently even during this unprecedented
COVID-19 crisis as we continue to create many more new “wayswe live.”

Real Estate BusinessInformation andTelecommunications
Business
Other Businesses

Total

Segment sales

37,333

Segment profit

2,142

Segment sales

20,377

Segment profit

1,227

Segment sales

6,999

Segment profit

48

Segment sales

2,117

Segment profit

196

Segment sales

66,827

Elimination or corporate-1,086

Operating profit

2,529

03

1H FY12/2020

Profit margin (%)

Results (¥ million)

Profit margin (%)

38,922
5.7

2,228

5.7

1,835
275
-369

1,768

＋460
-559

1,317

＋518

-24.9

5,619

-366

5.2

＋462.9

115

＋159

-46.8

2,193

-1,066

—

112

-482

＋6.0

73,566-2,722—-1,191

-4

＋9.6

2,122

＋651

—

-1,196
2,773

-729

＋4.0

26,101

70,844
3.8

39,651

＋49.5

1,126
9.3

vs. Plan (¥ million)

＋4.3
＋25.3

5,252
0.7

Plan (¥ million)

7.2

25,5416.0

1H FY12/2020 (plan)YoY changes (%)

3.9

highly skilled and productive workers as needed rather thanrelying solely on full-time employees. Interest in workforce
flexibility is increasing even faster because of the COVID-19
crisis. Moreover, Japan’s April 2020 enactment of an equal pay
for equal work system has further raised the need for workforce
flexibility and for utilizing people with the advanced skills thatjustify their wages.
The values and interests of a company’s workforce are
becoming increasingly diverse. Many people want to work in amanner that matches their life styles, whether that means
regular employment or non-regular employment format. Careeradvancement is another goal, along with compensation thatreflects each individual’s performance.
Japan’s human resource services sector has become amature business. I believe that this business will be
increasingly dominated by a few large worker dispatching andsubcontracting companies. Success will require schemes formatching the needs of companies and their people, and theability to have the same commitments as client companies
regarding compliance and risk management, which are criticalin today’s uncertain business climate.
Our basic strategy is to create a well-trained and organized
workforce in order to assemble a human resources platform
with the goal of creating a co-sourcing business model thatreflects our distinctive strengths. To accomplish this goal, we
have started working on two key initiatives. One isstrengthening collaboration among our business segments.
The other is enlarging the breadth of our operations tomaximize the market sectors where we can use our people. We
already have powerful programs for education and training andprovide strong support for career advancement that enable
everyone at our group to acquire and upgrade high-tech skills.
Giving people more advanced skills and using these skills to
shift people to more attractive job categories has allowed us toappropriately raise the fees we charge clients. In addition, we
use our unique co-sourcing model for recruiting andassignments in order to work in a unified manner with partnercompanies. I believe we are making progress with using these
activities for maximizing our pool of human resources as wellas the types of jobs where they can be placed.

people to achieve their greatest possible happiness.
Everyone at our group is firmly dedicated to taking theactions needed to position our organization for medium tolong-term growth. I ask all of our stakeholders for yourcontinued understanding and support.

A diversified business portfolio isa key strength even during
the COVID-19 crisis
Businesssegments

Human Resources andEducation Business

The WORLD HOLDINGS Group will continue to build on our
stable base of operations backed by a diversified businessportfolio. We are determined to use this strength for sustained
growth even during the unprecedented challenges created by
the COVID-19 crisis. By enlarging the breadth of activities forcreating the “ways we live,” which is our social mission, I
believe we can establish and strengthen schemes that enable

Businesses
that generatesales fromindividual
projects

Geographic
diversification

Real EstateBusiness

A soundbusiness
infrastructure
backed bydiversified
business
portfolio

Buildinga business modelwith priority on
risk diversification
Recurringrevenue
businesses

Customers indiversified
industries

Information andTelecommunications
Business

Aiming for sustained growth bymaintaining a stable base of operations

Financial Highlights (1H FY12/2020)

Net sales:¥70,844

Operating profit:
million

YoY:

6.0%

¥2,773

millionYoY:Profit attributable toowners of parent:

Ordinary profit:

9.6%¥2,872

million

YoY:

13.6%

¥2,497

million

YoY:

48.2%

8,338

7,851

5,601

159,682

56,853

1H FY12/2017

64,3791H FY12/2018

66,827

1H FY12/
2019

2,981

70,8442,005

1H FY12/2020

FY12/2020(forecast)

1H FY12/2017

1H FY12/
2018

2,529

1H FY12/
2019

2,950

2,773

1H FY12/
2020

2,001

FY12/2020(forecast)

1H FY12/201704

1H FY12/
2018

2,529

2,497

2,061

2,872

1,079

1H FY12/2019

1H FY12/2020

FY12/2020(forecast)

1H FY12/2017

1H FY12/
2018

1,685

1H FY12/2019

1H FY12/2020

FY12/2020(forecast)Close-Up

The Impact of COVID-19 and Our Responses to the Crisis
This section explains how COVID-19 is affecting our businesses and the industries we serve. We also explain the use of our stable base of operations
underpinned by diversified business portfolio with multiple businesses and industries to reduce the effects of this crisis by spreading our risk exposure
across many businesses and industries.

Taking full advantage of thebenefits of multiple businesses
and industries
Japan’s declaration of a state of emergency in April
2020 severely restricted many types of businessactivities. We succeeded at minimizing the effects of
COVID-19 on 1H performance by leveraging thestrengths of our diversified business portfolio withmultiple businesses and industries.
The management philosophy of“sustainablecirculatory management”has been at the heart of theoperations of WORLD HOLDINGS since its inception.
We used this philosophy to build a sound base ofoperations that is not vulnerable to changes in theeconomic or social climate. Creating this base requireda stable and well-balanced base of operations
consisting of multiple businesses and industries. As aresult, we now have three core businesses: Human
Resources and Education, Real Estate, and Information
and Telecommunications.
In the Human Resources and Education Business, ourcore business segment, we provide services for an evenbroader range of industries. Our services encompass a
broad spectrum of market sectors primarily involving
manufacturing, including R&D, designs and development,
production, logistics, sales, after-sales services and otheractivities. Companies that use our services produce

smartphones, cameras, automobile parts, industrial
robots, semiconductors, electronic parts and manyother products.
The advantage of our diversified business portfoliowith multiple businesses and industries is the ability touse strength in other businesses or industries to offset a
downturn in production activities in a particular businessor industry due to changes in the economic or social
climate. Due to the benefits of our diversified risks
resulting from this advantage, we were able to minimize
the impact of COVID-19 on our performance. Our goal
remains the growth of corporate value by using thissound base of operations for fulfilling our social
mission of creating the“ways we live.”

Summary of the effects of COVID-19 (arrows show YoY change in segment profit)

Risk diversification by using the strengths ofmultiple businesses and industries

Operations prior
to the 1H FY12/2020

Factory Staffing
Business

Semiconductor andmachinery

Logistics

Automobile parts

Technology Staffing
Business

Semiconductor

Information andtelecommunications

Automobile

R&D Staffing
Business

Temporary staffing for
research personnel

Clinical trials

Sales & Marketing
Staffing BusinessApparelCall centers

Real Estate Business

Development

Renovation

Information andTelecommunications
Business

Mobile phone stores

Other Businesses

Agricultural parks

Human Resources
and Education
Business

05

Light-duty jobs

Construction

Risk Diversification among Businesses and Industries/Ongoing Actions

Human Resources andEducation Business

Real EstateBusiness

Information andTelecommunications Business

Other
Businesses• Suspension of operations at some client companies(the automobile parts and other industries)• Limitations on the mobility of people (restriction on
assigning people to jobs in a different prefecture)

Negative
effects• Higher cost of some people waiting for assignments
because of the difficulty of capturing new orders• Social distancing reduced the efficiency of work andoperating time declined because of the growth ofteleworking

POINT

Positive
effects

Ongoingactions

There were some negative effects,
but they were offset by the diversity ofour businesses, which is a key strength• A cautious stance for the procurement ofdevelopment and renovation properties• Decline in orders from hotel companies for land forbusiness use• Renovation business growth temporarily slowed
mainly because of the smaller sales networks of major
brokers

POINT• Decline in the number of phones
sold mainly because of shorter
store operating hours• Agricultural parks were forced tosuspend operations in April andMay, normally the busiest time of
the year, in response to requests
from local governments.

Used rigorous risk management tominimize negative effects;
regard upcoming changes in market
conditions as an excellent opportunity• Strong performance by the logistics sector due topurchasing by people staying home for safety• One-time factors raised orders in some fields
involving pharmaceuticals and clinical trials• Some categories, including light-duty work, generalmerchandise stores and call centers, performed well
• Recruiting people has become easier• No significant change in the volume of land forbusiness use orders from major developers• The environment for purchasing real estate may
improve because companies and individuals arelikely to move ahead with asset sales• ARPU is increasing because ofpurchases by people staying
home for safety• The number of visitors is slowly
recovering because agriculturalparks offer a variety of outdoor
activities that avoid close contact

We are implementing COVID-19 safety measures with thehighest priority on preserving jobs for our people andensuring that clients can use our services with confidence.
A reorganization is expected in this industry as weakercompanies can no longer survive. We will reinforce
cooperation among our business segments with the goal ofincreasing our market share as we continue to leverage ourcoverage of many business fields, which is a key strength.

Japan’s prolonged real estate price bubble made it difficult
to purchase properties at reasonable prices. Market
conditions are expected to change, creating an opportunity
to switch from right-sizing this business to a more offensive
posture. We are building a foundation for real estate
financial businesses and making preparations for morechanges in Japan’s real estate market.

This business has completed the phase ofsurviving challenges in order to receive
benefits as one of the survivors in thisindustry. Next is the phase of recovering
investments. Activities are under way togive store personnel thorough training andto assemble a network of highly competitive
stores that can succeed amid the rapidchanges taking place in thetelecommunications market.

There is a large number of potential
agricultural park visitors because
people are interested in healthy
activities and are tired of staying home.
We plan to raise awareness ofagricultural parks as a safe outdoor
destination during the COVID-19 crisis,such as by using promotions linked
with Japan’ s Go To Travel campaign.

06

Business Segment Overview
Design anddevelopment

Human Resources and Education Business
Manufacturing begins with R&D and requires design and development, production processes and otheractivities to make a product. Next are logistics and sales operations to deliver products to purchasers as well
as repair and other after-sales services. With subcontracting and work dispatching capabilities, we are a
one-stop provider of services extending from upstream to downstream processes in the manufacturing sector.
We have the resources to meet many requirements of client companies as well as to give our workforce theskills and other support they need to achieve their career goals.

Business
Overview

Machinery/Electricity/
Electronics/SI design anddevelopment

R&D
Biotechnology/
Chemical research/
Clinical research

Segment profit¥38,922After-sales
services

4.3% U P

millionSegment sales

Sales composition:

Factory Staffing

Technology Staffing

Sales & Marketing

R&D Staffing

Sales & Marketing

4.5%

9.0%

5.0%

2,142

2,228

12.3%

17.1%

36.1%

39.8%

42.9%

22.0%

21.5%

64.1%

64.5%

53.1%

1H FY12/2019

1H FY12/2020

1H FY12/2019

Factory Staffing

0.2%• ‌Although the technology staffing services market is slowing down due to COVID-19, there was
growth in demand for people in the semiconductor sector.
• ‌Performance also benefited from the ability to charge higher fees because of training programs,
which has been a priority for some time. As a result, earnings were well above the plan.
• ‌Other activities include recruiting people with technology work experience, new types of training
programs for people including current employees to enhance skills and enable them to do jobs at ahigher level. These measures are positioning this business for upcoming trends in the technology
sector.

Factory Staffing

Technology Staffing

R&D Staffing

Sales & Marketing

20,703
2,639

22,124
1,362
1,093

15,6091H FY12/2019

1H FY12/2020

16,639• ‌The Technology Staffing workforce increased
because of the benefits of personnel training, oneof the priorities of this business, and a larger thanplanned increase in the number of placements oftrainees.

1H FY12/2020• ‌The Sales & Marketing returned to growth following
the completion of structural reforms and increased
its workforce.

2,880

R&D Staffing• ‌The number of workforce in the Factory Staffing
increased as this business strengthened locallybased recruiting activities and the co-sourcing
model to secure human resourses, and as the 5G
and logistics sectors performed well.

(3-month average) (People)

1,514
1,091

Sales/
Light-duty jobs/
Call centers• Some automobile parts and other companies suspended operations due to COVID-19, but staffing
services involving the 5G mobile communication and semiconductor sectors, which we have been
strategically targeting for growth, performed well.
• In the logistics sector, demand was strong because of purchases by people who are staying home.
We also promoted training programs in order to open more factory staffing business sites.
• Recruiting and assignment activities incorporated numerous measures for protecting people fromCOVID-19 in order to preserve jobs and enable client companies to use our services with confidence.

-1.6%

Number of enrolled workers

Sales

Factory Staffing

Segment profit

R&D Staffing

9.4%

54.9%

4.0% U P

millionTechnology Staffing

38,922

Logistic
warehouse/3PL

YoY:

Factory Staffing

37,333

Logistics

1H FY12/2020 Overview¥2,228YoY:

Manufacturing line/
Maintenance andpreservation

One Stop
Service

Repairing/
Maintenance

Segment sales

Manufacturing• ‌Clinical research orders increased somewhat due to demand associated with COVID-19 and there
were one-time sources of demand for analysis, pharmaceuticals and other categories of theresearch personnel sector.
• ‌A training infrastructure using joint research laboratories operated with partner universities helps
this business recruit people across a broad range of skills, backgrounds and other characteristics,
which further strengthened recruiting activities.

Sales & Marketing• ‌Staffing orders in the apparel category decreased because of COVID-19 but the light-duty work,
general merchandise store and call center categories performed well.

07

Information andTelecommunications Business

Real Estate BusinessBusiness
Overview

This comprehensive real estate business encompasses realestate developments, renovations, prefabricated houses andother activities directly related to properties, and focuses on the
recently started real estate finance business.

Business
Overview

Segment sales
Segment sales¥25,541

Segment profit
YoY:

million25.3% U P

¥1,835

Segment profit

YoY:

million49.5% U P

The main activities are the local community-based operation of
SoftBank, au and other mobile phone shops, the provision ofsolutions for corporate clients, and telemarketing.

¥5,252¥275

YoY:

million24.9% DOWN
YoY:

million462.9% U P

Salescomposition:

7.4%

1H FY12/2020 Overview
Sales and earnings per shop increased in the 1H. The main reason was the benefits of measures andinvestments completed in the prior fiscal year to strengthen shop operations. There were organizational andstore improvements as well as training for upgrading knowledge and customer service skills of shop
personnel. COVID-19 limited store operating hours, but the negative impact was not significant.

Segment sales
Real estate development

Segment profit

Other Businesses

Detached house

Renovation, others

1,835

25,541
Sales composition:

36.1%

20,377

31.7%

Business
Overview

2.8%

47.0%
21.4%

1,227

This category includes operation and management of 13
agricultural parks with the theme of harmony between nature, manand society, PC schools, a website production service, and otheractivities.

65.5%

31.6%
1H FY12/2019

1H FY12/2020

1H FY12/2019

1H FY12/2020

Segment sales

1H FY12/2020 Overview

Segment profit

In the core real estate development category, COVID-19 had a negative effect on condominium
procurement and sales activities. Despite this challenge, sales of land for business use exceeded theplan mainly due to sales activities that reflected current market trends. The renovation business wasaffected by the smaller size of major brokers’ sales networks due to COVID-19. This business continued
to purchase properties cautiously while monitoring price movements. In addition, there were activities forbuilding a base for asset management and other real estate financial businesses in anticipation of the
expected reversal of the business climate.

¥1,126¥ (369)YoY:

million46.8% DOWN
1H FY12/2019:

million¥196

millionSales
composition:

1.6%

1H FY12/2020 Overview
Suspensions of operations of agricultural parks in April and May, normally the busiest time of the year, in
response to requests from local governments severely impacted the performance of these parks. Currently,
the number of visitors is slowly recovering as these parks take advantage of their ability to host people foroutdoor activities involving nature while avoiding close contact among visitors.

08

Consolidated Financial Results

Consolidated Balance Sheet

Consolidated Cash Flows(¥ million)

Assets(¥ million)

Liabilities and net assets

Current assets

Non-current assets

Current liabilities
Net assets

87,352

Non-current liabilities

87,35277,803

Cash and deposits
Notes and accounts
receivable–trade
Real estate for salein process

12,093
26,234

Property, plantand equipment
Intangible assets
Investments
and other assets

77,803
Cash and deposits
Notes and accounts
receivable–trade
Real estate for salein process

16,51376,92023,116

52,79040,155

5,242
376

10,617

10,97323,944

26,674

Dec 2019-end

Jun 2020-end

Property, plantand equipment
Intangible assets
Investments
and other assets

3,820

10,431

11,156

Dec 2019-end

Jun 2020-end

Consolidated Statement of
Income(¥ million)

5,537

Operatingprofit2,773

66,827

2,529

2,529

Profitattributabletoowners ofparentNon-operating
income2,872

Cost of sales

Non-operating
expenses

58,880103

246

17,929Cash flows
from financing
activities(1,783)

1H FY12/2020

Ordinary
profit201

Cash flows
from investing
activities

2,799

Net sales

70,844

Net sales

Ordinary
profitCash flows
from operating
activities

66,647

5,919
690

Operatingprofit16,513

17,92911,230Cash andcash equivalents
at end of period

Cash andcash equivalents
at beginning of
periodExtraordinary
incomeProfit before
income taxes

180

3,051

Profitattributabletoowners ofparentExtraordinary
losses1

2,497
Total income
taxes

433

SG&A
expenses

9,189

Profitattributabletonon-controllinginterests

121

1,685

1H FY12/2020

1H FY12/2019

09Corporate Data

Corporate Data (As of June 30, 2020)
Name

World Holdings Co., Ltd.

EstablishedFebruary 12, 1993

Share capital¥1,241 million

Representative

Eikichi Iida, Chairman and President

Number of
employees

20,431 (consolidated)

Major 37 affiliates(33 consolidated subsidiaries, 4 non-consolidated subsidiaries) (As of June 30, 2020)
Human Resources andEducation Business

Real Estate BusinessConnecting people to jobs,
a new ways of working

Connecting people with homes shaping
the way we live through home creation

Fukuoka Head Office:
6F Fukuoka Asahi Building, 2-1-1 Hakata Ekimae,
Hakata-ku, Fukuoka-shi, Fukuoka Prefecture 812-0011
Phone: +81-92-474-0555 Fax: +81-92-474-0777
Address

Kitakyushu Head Office:11-2 Otemachi, Kokurakita-ku, Kitakyushu-shi,
Fukuoka Prefecture 803-0814
Phone: +81-93-581-0540 Fax: +81-93-581-0542

Information andTelecommunications
Business

Tokyo Head Office:
4F NBF COMODIO Shiodome, 2-14-1 Higashi-Shinbashi,
Minato-ku, Tokyo 105-0021
Phone: +81-3-3433-6005 Fax: +81-3-3433-6003

Businesses

Bring people together through new styles ofcommunications with inforamtion technologies

Businesses related to the entire group including formulation ofmanagement policies for the holding company and the group companies
and management of the group’s business operations (Human Resources
and Education Business, Real Estate Business, Information andTelecommunications Business, and Other Businesses)

Executives
Eikichi Iida, Chairman and President
Toru Iwasaki, Director
Hidenori Yamada, Director
Shigeru Nakano, Director
Shinji Honda, Director
Hitoshi Yukawa, Director
Toshihiko Kanno, Director
Yoshihiko Mimasu, Director
Yuji Takai, Director
Masaaki Shiomi, Director
Masayoshi Nuki, Director (Outside Independent)
Shingo Igarashi, Director (Outside Independent)
Hideki Yamazaki, Director (Outside)
Kazuyuki Yamamura, Audit and Supervisory Board Member (Full-time)
Mitsuo Koga, Audit and Supervisory Board Member (Outside)
Tetsuo Kato, Audit and Supervisory Board Member (Outside)

Other Businesses

New Business

10

Stock Information (As of June 30, 2020)

Memorandum for Shareholders

Number of authorized shares: 54,000,000
Number of shares outstanding: 17,561,600
Number of shareholders: 3,339

Treasuryshares0.65%

Individuals/
others18.72%

Foreignentities,
etc.
13.00%

Financial
institutions
20.75%

Shareholder
Composition

Financial
instruments
firms
1.34%

Other
entities
45.55%

Major Shareholders
Number ofshares held

Shareholding
ratio

Mirai Research Institute, Limited

7,965,000

45.65%

Japan Trustee Services Bank, Ltd. (Trust Account)

1,549,000

8.87%

BNP PARIBAS SECURITIES SERVICES LUXENBOURG/JASDEC/FIM/LUXEMBOURG
FUNDS/UCITS ASSETS
Standing Proxy: The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch

820,000

4.70%

The Kitakyushu Bank, Ltd.
Standing proxy: The Master Trust Bank of Japan, Ltd

709,200

4.06%

Nanko Abe

500,000

2.86%

Eikichi Iida

496,500

2.84%

The Master Trust Bank of Japan, Ltd. (Trust Account)

358,700

2.05%

THE NISHI-NIPPON CITY BANK, LTD.

300,000

1.71%

MUFG Bank, Ltd.

180,000

1.03%

JP MORGAN CHASE BANK 385781
Standing proxy: Mizuho Bank, Ltd., Settlement Sales Department

147,153

0.84%

Name of shareholders

Shareholding ratio is calculated after deducting treasury shares (113,300 shares).

Dividends
The basic policy for profit
distributions is to distribute profits ina manner that reflects results ofoperations while retaining sufficientearnings for future business
operations and for making business
operations stronger. For dividends,
the goal is to increase the dividend
consistently while using a
consolidated payout ratio of 30% as
the guideline.

Dividend per share (¥)

Business year

January 1 to December 31

Annual General Meeting of
Shareholders

March

Shareholder registry andspecial accountadministrator

Mitsubishi UFJ Trust and Banking Corporation

Address

Securities Agency Division, Mitsubishi UFJ Trust and Banking
Corporation 1-1 Nikko-cho, Fuchu-shi, Tokyo, Japan
Contact: 0120-232-711 (toll-free in Japan)
Mailing address: Securities Agency Division, Mitsubishi UFJ Trustand Banking Corporation, PO Box 29, New Tokyo Post Office,137-8081

Public announcements

Notices will be posted in electronic format on our internet web
page (https://world-hd.co.jp/). However, notices will be publishedin the Nihon Keizai Shimbun when an electronic notification is notpossible for unavoidable reasons.

The World Holdings Website
The IR Information section of the World Holdings website has messages from senior executives,
information about the New Medium-term Management Plan 2021, an IR library, financial data andrecent news.

Front page of the website

IR Information

https://en.world-hd.co.jp/

https://en.world-hd.co.jp/ir/

99.8
75.3

82.7

83.0

52.7

45.7
23.7
8.5

10.0

FY12/
2012

FY12/
2013

FY12/
2014

FY12/
2015

FY12/
2016

FY12/
2017

FY12/
2018

FY12/ FY12/2020
2019 (forecast)

Fukuoka Head Office

Kitakyushu Head Office

Tokyo Head Office

6F Fukuoka Asahi Building, 2-1-1 Hakata Ekimae,
Hakata-ku, Fukuoka-shi, Fukuoka Prefecture 812-0011
Phone: +81-92-474-0555 Fax: +81-92-474-0777

11-2 Otemachi, Kokurakita-ku, Kitakyushu-shi,
Fukuoka Prefecture 803-0814
Phone: +81-93-581-0540 Fax: +81-93-581-0542

4F NBF COMODIO Shiodome, 2-14-1 Higashi-Shinbashi,
Minato-ku, Tokyo 105-0021
Phone: +81-3-3433-6005 Fax: +81-3-3433-6003