FY2019 First Quarter Financial Results

May 7, 2019 (Tue)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Contents
I. Summary of FY2019 First Quarter Financial Results
・Summary of Financial Results
・Overview of Business Results by Segment (Results Compared to the Results in the Previous Term)・Details of Each Segment
・Topics
・Financial Condition B/S

… P3
… P4
… P5
… P14
… P16

Ⅱ. FY2019 Business Forecasts
・FY2019 Business Forecast
・FY2019 Factors for increasing or decreasing operating income

・Business Forecast by Segment
・Quarterly Business Forecast
・Shareholder Returns

… P18
… P19
… P20
… P21
… P23

Ⅲ. About Mid-term Managerial Plan
・Overview of New Mid-term Managerial Plan 2021
・Ideal state of Human Resources and Education Business・Initial Estimate vs. Changes in Actual Business Performance (for Last 5 Years)

・Changes in Actual Business Performance by Segment (for Last 5 Years)

… P25
… P26
… P27
… P28

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

1

Ⅰ. Summary of FY2019 First Quarter Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Summary of Financial Results⚫ The Human Resources and Education Business, which is the mainstay, remained healthy, and contributed to overall results.
⚫ Sales grew, but profit declined year on year. However, sales and operating income both exceeded the initial estimates. In addition to
the Human Resources and Education Business, the Real Estate Business showed steady increase compared to the initial estimates.
⚫ Expecting the system for equal pay for equal work from April 2020, we started dealing with the reform of ways of working. We will
also proceed with preparations for new solution packages to customers.

(Unit: Million yen)

*2019/1Q
initialestimate

2019/1Q
actual30,11130,19930,614

＋415

+503

+1.7%

Operating income

570

-101

162

＋263

-407

-71.5%

Ordinary income

553

―

159

―

-393

-71.1%Net income attributable to

148

―

11

―

-137

-92.5%

2018/1Q
actualNet sales

owners of parent

Result against
estimate
Surplus

YoY
ChangePct.
Change*Announced on February 12, 2019
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved3

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

2018/1Q
actualUnit: Million yen(Profit margin)

2019/1Q
actualYOY(Profit margin)

ChangeFactory BusinessTechnology BusinessNet sales

11,320
653
3,151
250
1,594
100
1,046
-12
17,112
991
9,194
217
3,349
37
454
-196
30,111Elimination or
corporate-478

Operating income

570

Net sales

4,828
104
4,367
113

Net sales
Segment income

Net sales
Segment income

Human Resources
and Education
Business

R&D BusinessNet sales
Segment income

Sales & Marketing
Business
Total (reference)

Net sales
Segment income

Net sales
Segment income

Real EstateBusiness

Real Estate BusinessInformation andTelecommunications
Business

Information andTelecommunications
Business

Other

Net sales
Segment income

Net sales
Segment income

Net sales

OthersSegment income

Total(5.8%)(8.0%)(6.3%)－(5.8%)(2.4%)(1.1%)－

11,785
506
4,037
354
1,692
106
810
-17
18,325
949
8,291
-23
3,369
-88
628
-126
30,614(4.3%)(8.8%)(6.3%)－(5.2%)－－－-546(1.9%)

162(0.5%)

Pct. Change

464
-146
886
103
98
5
-235
-4
1,213
-42
-903
-241
19
-126
173
69
503

4.1
-22.5
28.1
41.2
6.2
6.0
-22.5
－
7.1
-4.3
-9.8

-67

－

-407

-71.5

-1,817
-258
913
17

-37.6
-248.1
20.9
15.0

－
0.6
－
38.2
－
1.7

<Reference>
Real EstateBusiness

Development/Single-family
housingRenovation/PrefabricatedhousesSegment income

Net sales
Segment income(2.2%)(2.6%)

3,011
-154
5,280
130

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved－(2.5%)

4

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

⚫

Response to the changing external environment⇒Continued measured upfront investment from the medium- and long-term perspective in order to raise the brandstrength (capability of gathering workers)
Endeavor to enhance the human resources development/assignment functions and saw results in some of the efforts⇒Steady growth in Factory Business (distribution field), Technology Business and R&D Business◆ Sales composition◆ Segment income
Up 7.1%(Million yen)

20,00018,44518,00017,112

16,000

6.1%
9.3%

4.6%
9.3%

14,00018,325
Down 0.6%

22.1%

22.6%

18.4%

4.4%
9.2%

YoY
(Based on
monetary
amount)-22.5％+6.2％+28.1％

12,000

Down 4.3%(Million yen)

1,200
1,000
800

Up 14.6%

991

949

10.1%

828

11.2%

12.5%

25.3%

37.3%

28.2%

600

10,000
400

8,000

6,000

66.2%

64.3%

63.5%

+4.1％

65.9%
53.3%

60.6%

200

4,000
0

2,000
0

-200
2018/1Q

2019/1Q

actualFactory

estimate

Technology

R&D

actualSales & Marketing-1.3%

2018/1Q

2019/1Q

actualFactory

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

-1.9%

-1.3%

estimate
Technology

R&D

actualSales & Marketing5

Human Resources and Education BusinessOverall Segment<Factors in Changes of Segment Income>⚫
⚫

Immediate sales and profit continued to grow thanks to the net increase in the number of workers and the rising unit
price.
Meanwhile, we proactively made upfront investment in human resources development in an effort to gain a new positionin the field as a group of highly advanced engineers.
⇒Aiming to broaden the client base, further grow our company, and lay the groundwork for new
businesses for the future(Million yen)

○Factory Business
Enrichment of training programs at “Technical Center”
Reconstruction of “new HR system” with external business partners
Development of managers for “establishment of a new logistics base”

26

98○Technology Business“Training in 3D-CAD” “Training in production engineering”
Broadening the scope of “programming training” “Infrastructure training”
Assistance in obtaining qualifications-166○R&D Business“Training centered around ‘Hospitality Mind’”Investment in human resources management systems○Establishment and operation of programs/systems for helping
employees curve out their respective careers○Provision of a 10-year follow-up training program for newly
employed workers

991
949

2018/1Q
ActualIncrease in Rise in unit priceworking staff

Variousinvestments

2019/1Q
ActualIncrease of new employees and improvement
in retention rate by enhancing brand power
Formation of highly capable engineer team
(Development of more advanced business fields+ promotion of our company)

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6

Human Resources and Education BusinessOverall Segment<The number of staff members>⚫ Regarding the distribution field (Factory Business), the base set up last fiscal year is operating stably.
⚫ In Technology Business, we increased the number of working staff by enriching the scheme that we hadpropelled forward with the aim of developing and assigning engineers.

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

25,00020,00015,00020,193

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

19,115
17,255

1,540
996
2,115

2,861

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

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

-279
+9
+357

15,151

+687

912
1,903

10,0005,000

16,782

11,5790
2017/1Q
Factory

Technology

R&D

2018/122019/1Q

Sales & Marketing*The number of staff in 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>⚫

As for the distribution field (Factory Business), the new base set up last fiscal year is operating stably. For setting up new bases, we arealso pouring efforts into stratified education focused on the development of managers.
For dealing with large-scale transactions in the Machinery, Electric & Electronics and Semiconductors Businesses in the second half, we
strived to strengthen our contracting system.
We moved ahead with investment in order to build a human resources platform (a group of experts with shared techniques and skills).
Gradually executing a new HR system which is being established by utilizing external enterprises⚫
⚫
⚫

◆ Sales composition by business segment
YoY(Based on
monetary
amount)(Million yen)

Up 4.1%

14,00012,00010,0008,000

11,32011,719

4,000

32.6%

(Million yen)

（Persons） *Parentheses signify the numberof new employees.

1,000Continuation of growth investment in preparation for
endeavors like the reconstruction of a HR system
and nurturing of human resources.

Down 22.5%

Up 0.6%

17.7%

+9.6％

13.3%

-13.9％-49.2％+8.2％

4.3%+27.9％

2.3%
5.9%

2.8%
12.1%

6,000

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

11,785

16.8%

12.8%
3.5%

◆ Segment income

16,000800

12,000Up 0.8%

600

501

506

4,000

2018/1Q
actualElectric & Electronics
Semiconductors
Others0
2019/1Q
estimate
Logistics
Machinery

1,401

1,464

8,795

8,971

2018/1Q

2019/1Q

0
2018/1Q
actualactual

4,716

2,000

+5.8％

0

10,000

4,267

6,000

+17.4％

2,000
19.8%

15,151
[274]

8,000

200
19.5%

14,464[239]

14,000

653

400
36.8%

18,0002019/1Q
estimate
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>
The scheme for developing and producing engineers titled “Creating the Ways We Live Academy”* was successful. In particular, theproduction of mechanical design engineers working in the automobile-related segment progressed healthily, and business partners
increased. Furthermore, the increase of qualified workers improved clients’ evaluation, charging up our business.

⚫

*For existing employees, the main courses include those for career change and brushing up their skills. For inexperienced ones, the major courses include 3D-CAD 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
YoY(Based on
monetary
amount)(Million yen)

Up 28.1%

5,000◆ Segment income◆ Variation in the number of staff (3-month average)(Million yen)

（Persons） *Parentheses signify the numberof new employees.

400

Up 41.2%

3,000

354
4,160
Down 3.0%

4,000

Up 51.7%

350

4,037

2,500

300

3,151

33.2%

+28.7％

250

3,000
32.8%

2,000

7.0%
5.9%

7.8%
4.7%

+43.6％
+1.3％

200

16.0%

+20.0％

150

17.0%
38.3%

37.3%

+30.9％

0
Semiconductors
Machinery
Others

233

2,000

375

312

1,500

1,360
1,070

1,000

100

1,000

2018/1Q
actual

250

2,115
[114]

2,472
[175]

500
50

estimate

2018/1Q
actualactual737

2018/1Q

2019/1Q

00
2019/1Q

734

2019/1Q
estimate
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 whoare 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 making steady progress. Making full efforts to secure talented research employees and develop
human resources, while strategically increasing transactions with existing clients in the life science sector.
Recruited a greater number of new graduates than last year, and implemented their early assignment.
The clinical research outsourcing (CRO) segment, in the contract service of DOT World Co., Ltd., is engaged in structural reform
including reconfirmation of markets, reviewing contents of business operation, etc. while taking into consideration opinions ofexternal intellectuals.

⚫
⚫

◆ Sales composition by business segment(Million yen)

2,000

YoY
(Based on
monetary
amount)Up 6.2%
1,709
Down 1.0%

1,594
1,500

12.7%
7.5％

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

（Persons）*Parentheses signify the numberof new employees.

1,692

140

Up 6.0%Up 2.9%

120

14.6%

+21.8％

7.4%

+4.8％

1,200

100

106

103

39.4%

42.5％

-1.8％

91

87

905

919

2018/1Q

2019/1Q

800

600

60
40

500

1,005
[96]

100
80

1,000

1,000

996
[78]

400

20
38.7%

37.3％

+10.2％

200

0
We are proceeding withstructural reform.

0
2018/1Q
actualPharmaceutical/biotechnology

0-20
2019/1Q
estimate
ChemicalClinicalactualThe Researcher
Dispatch segment
expanded steadily.

Clinical（outsourced to
DOT）2018/1Q
actual2019/1Q
estimate

Clinical（outsourced to
DOT）

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

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R&D staff

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※ As for the Real Estate Business, keeping in mind the characteristics of thisbusiness, we are conducting management practices while seeing the trends
compared with annual estimates.

<Sales composition by business segment, and the number of pieces of real estate handed over＞⚫ Making efforts to enhance brand development centered around the renovation-related business.
⚫ Keeping profit earning as our main aim for the development-related business, we maintained a stanceof purchasing and delivering with suitable timing, by making use of our information and networks.
⚫ Keeping subsequent terms in mind, we are preparing for new initiatives like conversion.

◆ Sales composition by business segment
Down 9.8%(Million yen)

10,000
9,000

9,194

7,000

Up 8.8%

3.6%

7,619

8,000

◆ Segment income

Continuation of risk control in the development-related
segment

8,291
5.3%

YoY
(Based on
monetary
amount)+31.7％

43.9％
58.4%

5,000

+20.0％

217

200
150

50
0

17.5%

-23

-50

3,000
2,000

250

100

6,000

4,000

(Million yen)

18.7%

-3.7％

17.6%

-54.6％

-100

35.0%

1,000
0

-150

-181

-200
2018/1Q
actualDevelopment-related
Renovation-related

2019/1Q
estimate

2018/1Q
actualactual2019/1Q
estimate

actualSingle-family housing
Prefabricated houses-related*We have not disclosed the sales and segment income estimate by business segment.

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11

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

We invested mainly in the shop business, which would become our mainstay, for having the merits of remaining players. While
investing in the development of human resources for improving their hospitality, we consolidated or closed our stores (the number ofstores under direct management as of the end of Q1: 47).
The sales of the corporate solutions business grew steadily thanks to expansion into new areas and increase of handling products.
Meanwhile, the investments in initiatives for new products are currently affecting profit margins.

⚫

◆ Sales for each target(Million yen)

4,000
3,500

◆ Segment income
YoY(Based on
monetary
amount)Up 0.6%
3,349

3,528

3,369

60

3,000

20

2,500

0

2,000

-20

1,500

92.0%

Comprehensive cost reduction
solutions for corporation

37
Segment
income

+8.4％

8.6%

8.0%

(Million yen)

40

Down 4.5%◆ Corporate solutions

91.4%

-3

-0.1％ 89.4%
-40

1,000

-60

LED lighting

Air conditioners forbusiness use

Smartphones

500

-80

Multifunction machines

Computers

Internet lines

0

-100

Telephone system forbusiness use

Monitoring cameras

UTM/servers

Power Producer and
Supplier

Water-saving packing

Water dispensers

2018/1Q
actual2019/1Q
estimate

Mobile phone shop business-88
2018/1Q

actualactualCorporate solutions business

Mobile phone shop business2019/1Q
estimate

actualCorporate solutions business*We have not disclosed the sales and segment income estimate by destination.

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12OtherOthers<Sales and major activities>⚫

Advan Inc. achieved sales and operating income that were greater than expected through the education businesstargeting our group companies and other corporations.
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 to this facility nearly
doubled year on year. We will continue the redevelopment of facilities, including “Sylvanian Park” in Comorebi Morino
Ibaraido in Ibaraki Prefecture.

⚫

◆ Sales◆ Segment income
YoY(Based on
monetary
amount)(Million yen)

1,000

13
Up 3.5%

454

18.8%

+187.4％+24.9％

Advan Inc.

+17.3％

10.6%

2019/1Q
estimate
Farm Co., Ltd.

-196

-200

-250

10
2018/1Q

actual

11.6

11
-200

12.6%
actual

-126

-150

78.4%

2018/1Q

-100
12

9.1%
70.6%

0

14

628

600

200

0

-50

607

400

（Ten thousand）(Million yen)

13.2

Up 38.2%

800◆ Number of visiting customers

actual2019/1Q
estimate

2018/1Q

2019/1Q

actualOther*We have not disclosed the breakdown of the sales and segment income estimate.

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13Topics (1)March 2019 Opening of “Alps Gym,” the massive athletic facility that will be the largest in westernJapan, inside Shiga Agricultural Park Blumen Hugel Farm (Nishioji, Hino-cho, Gamogun, Shiga), which is run by Farm Co., Ltd.

Goal

Improve facilities to attract more customers- It’s designed in harmony with nature, has a height of 17 meters with 3 stories and has the largest scale in western Japan.
- The 72 installed stations and viewing platforms of attractions such as enjoying genuine bouldering and crossing log bridges on abicycle, humorous relaxing spots, and more, to keep customers from children to adults entertained.
- Climbing attractions with an innovative stylish design that allows up to 92 people to simultaneously play.

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14Topics (2)April 2019 Established JW Solution Co., Ltd., a comprehensive human resources service company specializing in the hotel industry.
[Joint investment with World Staffing Co., Ltd. and JTB Communication Design, Inc., which are consolidated subsidiaries of ourcompany]

TargetOffering new solutions about human resources to the hotel industry
facing a serious lack of personnel.

Know-how for recruitment, employment and management ofhigh-quality personnel

Know-how for developing human resources in accordance with unique hospitality
methods

80.2%

19.8%

Development and marshaling of personnel with expertise (Japanese and foreign personnel [highly talented personnel with unique skills])

Comprehensive human resources service by professional groups specializing in hotel businesses with a high level of hospitality

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15

Financial Condition B/S⚫ Assets and liabilities shrank owing mainly to the controlled procurement activities in Real EstateBusiness.
Total assets(Million yen)

Current assets

100,000
80,00079,96477,887

69,82367,77660,00040,0000

10,140

10,110End of FY2018

End of FY2019 1Q

Fixed assets(Million yen)・ Cash and deposits
・ Notes and accounts receivable-trade
・ Real estate for sale in process
Fixed assets

20,00060,000-4,068 million yen-1,002 million yen＋2,211 million yen

10,110（-30）

・ Total property, plant and equipment＋128 million yen

・ Goodwill-153 million yen

Current assets

Total liabilities/net assets
Liabilities

100,000
80,00067,776 （-2,046）

56,961（-654）

79,96477,887

46,13044,216・ Short-term debt
・ Accounts payable-real estate
・ Income taxes payable
・ Long-term debt

11,485

12,745

Net assets

22,347

20,925• Retained earnings

End of FY2018

End of FY2019 1Q-378 million yen-766 million yen-1,524 million yen＋1,734 million yen

40,00020,0000
Net asset

Fixed liabilities

20,925（-1,422）-1,368 million yen

Current liabilities

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16

Ⅱ. FY2019 Business Forecast

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17

FY2019 Business Forecast•

The implementation of strategies, which adhered to the new mid-term managerial plan, sustained thegrowth of the Human Resources and Education Business. Along with the expansion in sales thatexceeded the 5-year plan goals, the Real Estate Business shifted towards strategies that focus onsafety even more, as the inversion of the bubble-like external environment was expected.
Results for theterm ended Dec.
2018

Forecast for theterm ending
Dec. 2019

Unit: Million yen, %YoYChangePct.
ChangeNet sales

142,894

155,452

12,557

8.8

Operating income

7,370

6,049

-1,321-17.9

Ordinary income

7,357

5,910

-1,446-19.7

Net income attributable to

4,650

3,672

-978

-21.0

276.38218.11
65.5-58.27

-21.1

-17.5

-21.1

owners of parent

EPS (yen)
Dividend per share (yen)83.0

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FY2019 Factors for increasing or decreasing operating income•

The Real Estate Business is amid the process of changing the revenue structure in order to strengthen
its adaptability to the external environment, and the rising cautiousness of purchases in thedevelopment-related business, etc. are being reflected in the new estimate. On the other hand, therenovation-related business is expected to keep growing.
As for the renovation-related
business, we concentrate on
strengthening the brand,
expanding the target area, etc.

Upfront investments to
support growth gradually
showed its effects.

Further improving the safety line of business activities- Predicting the inversion of bubble-like conditions⇒ a decline in profit margin- The effects of increased purchase cautiousness in the
period up to the previous term.

315
154

653

-1,836

-607
7,370
6,049

FY2018Operating income

Human Resources
and Education
Business

Information andTelecommunications
Business

Other

Real Estate Business

Adjustment

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FY2019Operating income(estimate)19

Business Forecast by Segment•

As for the company’s mainstay business, the Human Resources and Education Business,
all segments are estimated to increase sales and profit.
Results for theterm ended Dec.
2018

Unit: Million yen, %Factory BusinessNet sales
Segment income

Human
ResourcesandEducation
Business

Technology BusinessNet sales
Segment income

R&D BusinessNet sales
Segment income

Sales & Marketing
Business
Total (reference)

Net sales
Segment income

Net sales
Segment income

Real EstateBusiness

Real Estate BusinessInformation andTelecommunications
Business

Information andTelecommunications
Business

Other

Net sales
Segment income

Others

Net sales
Segment income

Net sales
Segment income

Net sales

Total

Elimination or
corporate
Operating income

49,524
3,169
15,200
1,337
6,779
559
3,533
-100
75,0384,964
52,011
4,589
12,376
3
3,467-270
142,894-1,917
7,370

Forecast for theterm ending
Dec. 2019(Profitmargin)(6.4%)(8.8%)(8.3%)－(6.6%)(8.8%)(0.0%)－(5.2%)

53,427
3,309
18,228
1,548
7,638
719
4,066
40
83,361
5,617
56,063
2,753
12,019157
4,008
45
155,452-2,525
6,049

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YOY(Profitmargin)(6.2%)(8.5%)(9.4%)(1.0%)(6.7%)(4.9%)(1.3%)(1.1%)(3.9%)

Change

3,903
140
3,028
211
859
160
533
140
8,323
653
4,052
-1,836
-357
154
541
315
12,558(―)-1,321

Pct. Change

7.9
4.4
19.9
15.8
12.7
28.6
15.1
(―)
11.1
13.2
7.8
-40.0
-2.9
5,133.3
15.6
(―)
8.8
(―)
-17.9

20

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
7,370
155,452
6,049

142,894

40,987 4Q

37,526 3Q
34,268 2Q
30,111
2018/12

1Q

50,48038,45736,31430,199

2,986

4Q

3Q

2,378

2Q

1Q

3,390

4Q

1,613

3Q

1,170

2Q

3Q

1,434

2Q

570

1Q

1Q

-101

2019/12(estimate)
1Q

4Q

2Q

2018/122019/12(estimate)

3Q

4Q

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

21Quarterly Business Forecast by Segment
Human Resources and Education Business

Real Estate BusinessInformation and Telecommunications Business

56,063

12,37652,011

83,36175,03823,515
20,467

4Q

16,773

4Q

23,4244Q

2,952

Net sales

19,024

3Q

21,546

3Q

14,821

3Q

13,122

17,112

4Q

2Q

1Q

2018/12

19,854

18,445

2Q

1Q

11,221

2Q

9,194

1Q

2019/12(est.)

2018/12

5,617

4,589

3Q

11,898

2Q

7,619

1Q

2019/12(est.)

3,349

2Q

1Q

2018/12

2,061

1,192
991

2018/12

4Q

2,618

3Q

3,467

4Q

2,143

4Q

4Q

3Q

2Q
1Q

1,587

1,140
828

3Q

1,661
567

2Q

217

1Q

2018/122019/12(est.)

1Q

3,186

3,528

793

4Q

998

3Q

1,220

2Q

454

1Q

3Q
2Q
1Q

2,753
2,078

456
400
-181

3
4Q

3Q
2Q
1Q

2019/12(est.)

2Q

79

5
36

4Q
2Q

37

1Q

-75

3Q

855

4Q

1169

3Q

1,375

2Q

607

1Q

2Q

1Q

2018/122019/12(est.)

157

Segment income
1,344

2,685

2019/12(est.)

4,964
1,436

4,008

3Q
3,392

18,43312,019

4Q
2,682

Other

45
79

3Q

224

2Q

4Q

2Q

46

3Q

66

34
-3

2Q
1Q

-196

1Q

-200

1Q

-47

3Q

-57

4Q

-92

4Q

-270
2018/122019/12(est.)

3Q

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

2018/122019/12(est.)

4Q

22

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

Dividend per share

90.0

82.7 82.8 83.0

Initial estimate
Results

80.0

75.3
68.5

70.0

65.5

63.2

60.0
50.0

45.7

40.0
30.0

23.7 25.3

20.0

10.0

8.5

8.5 10.0

2012/122013/12

14.3

4.5

0.0
2014/122015/122016/122017/122018/122019/12(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 Reserved

23

Ⅲ. About Mid-term Managerial Plan

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

24Overview of New Mid-term Managerial Plan 2021
Expansion based on well-balanced business administration
・To evolve well-balanced business management mainly in the core businesses, and pursue optimal profit
performance・To enter the business fields peripheral to each segment, and provide new services
・To use M&A as one of the effective methods during the aforementioned process[First half of the mid-term managerial plan][Second half of the mid-term managerial plan]

Enhancement of brand strength, “capability of gathering workers”
Human Resources andEducation Business

M&A＋
Self growth

We take the lead in changing the concept of connecting people and companies.
⇒ Evolution of the human resources platform

Shift to profit structure less susceptible to the economic environment
Real Estate BusinessInformation andTelecommunications
Business

While holding fast to expansion of the development-related field at a properscale, we focus on the recurring-revenue businesses, including renovation.

Creation of new value through pursuit of services
We develop corporate solutions as a new business pillar in addition to the shop
business.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved25

1

Human Resources and Education
Business

Ideal state of Human Resources and Education Business
Ideal state to achieve by fiscal 2021 ⇒Our unique position & high profitability
Skill

Dispatch
Dispatch ofskilledresearchers andengineers

High

Undertaking
Makers’ tasks

Dispatch of teams<HR platform>

Co-sourcing

Undertaking of large-scale projects
Our team undertakes the coretasks regarding design,development, manufacturing,etc. that have been conductedby the employees of makers.

Current fields ofcompetition

Team

Individual[Volume zone]
Area for pursuing quantity
We don’t pursue scale.

Temporary tasks
Skill

Low

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

26Initial Estimate vs. Changes in Actual Business Performance (for Last 5 Years)

Up until 2018, the progress has been generally in line with the new mid-term managerialplan (focused on sales growth).
New Mid-term Managerial Plan

Former Mid-term Managerial Plan

(Million yen)

Net sales

Emphasis on sales growth

200,000（Profit margin declined due to investment.）

Initial estimate

200,000

Actual145,137 142,894

150,000

123,846 127,147
85,67787,984

100,000

100,111 94,334

70,62068,829

50,0002014/122015/122016/122017/12Results in 2016

12,50010,0007,500

Aiming to double net sales

Net sales:
94.3 billion yen
Operating income:
7.4 billion yen(Million yen)

Operating income

Initial estimate

2018/122021/12
Goals in 2021
Net sales: 200 billion yen
Operating income: 10 billion yen

Actual
10,000Emphasis on profit
7,407（structural reform）

6,270

7,064

7,288 7,370

6,275

2016/122017/122018/12

5,137

5,000

3,748

3,761

2,680

2,500
0
2014/122015/12

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2021/1227

Changes in Actual Business Performance by Segment (for Last 5 Years)(Million yen)

80,000(Million yen)
Sales in the initial estimate (left)
Sales in the actual result (right)

60,000

Human
Resources andEducation
Business

6,000

The deviation from the plan was minimal
and the growth was healthy.

Segment income in the initial estimate (right)

5,000

Segment income in the actual result (right)

40,0004,000

20,0003,000

0Profit margin（Initial
estimate⇒Actual result）

2,000

2014/122015/122016/122017/122018/12

6.1%⇒7.1%

7.3%⇒7.8%

7.6%⇒7.7%

7.1%⇒7.1%

7.3%⇒6.6%(Million yen)

60,000(Million yen)

bubble-like conditions

6,000

Sales in the initial estimate (left)
Sales in the actual result (right)

5,000

Segment income in the initial estimate (right)

40,0004,000

Segment income in the actual result (right)

Real EstateBusiness

3,000
2,000

20,0001,000
00Profit margin（Initial
estimate⇒Actual result）

2014/122015/122016/122017/122018/125.9%⇒12.0%

6.3%⇒9.6%

10.6%⇒15.0%

7.3%⇒9.4%

6.8%⇒8.8%

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

Ⅳ. Reference

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved29

1

Human Resources and Education
Business

About the utilization of foreign workers

Current utilization areas

Status of residence

Related examples

Restrictions on work permits

Residency status for professional or
technical fields
Residency status based on social
statusHealth care provider, educators, transferees working for a multinational
corporation, lawyers, etc.
Permanent residents such as second generation Japanese descendants,
Japanese spouses, permanent residents.
Trainees who seek the transfer of technology in related fields such as the
manufacturing, fishing, and agriculture industries.
EPA candidates for nurses and care workers, working holiday, amateur
sports players, etc.

Work is only permitted within the scope prescribed in theresidency status.

Technical Intern Training
Designated Activities

Work activities are unlimited.
Must return home after completing the intern training
within a maximum of 5 years
Must return home if he/she can’t pass the state exam
within 3 years

Newly
established

Activity other than that
permitted under the status ofresidence

Part-time jobs of transfer students, etc.

Work activities are capped at 28 hours per week, and 8hours per day if he/she is on vacation

Highly-skilled workers class 1

Considerable knowledge or experience in any of the designated 14 fields
confirmed through an exam.

Limited to a maximum of 5 years.

Highly-skilled workers class 2

Not accepting for the first few years after establishing the system.

Unlimited

Challenges

Does hiring foreign workers fits their nature?
- Recruitment suitable for the purpose of their status of residence- Arrangements by the receiving party (Work environment and accepting
companies)- Supporting workers (culture, daily life, and blending in a local community)- Compliance

Are measures being taken to cope with the sudden increase?

It is highly dependent on who and how to utilize foreign workers, but there are also uncertainties.
Our stancebased on currently
available information

Make extensive efforts to closely watch the system's course, prepare for the expected increase,and create a solid system to support companies and individuals.

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30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
or sales of our stock. Furthermore, opinions, forecasts and other information notbased 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 thisinformation at any time without prior notice. We and other providers of this information
assume no responsibility whatsoever for any losses incurred in association with theinformation in this presentation.

人が活きるカタチ

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved31