Consolidated Financial Results for the First Quarter of 2018
(Three Months Ended March 31, 2018)[Japanese GAAP]May 7, 2018

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange, First Section
Stock code:
2429
URL: http://www.world-hd.co.jp
Representative: Eikichi Iida, Chairman and President
Contact:
Shigeru Nakano, Executive Director, Head of Corporate Planning Division
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
May 14, 2018
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
None
Holding of quarterly financial results meeting:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of 2018 (January 1 to March 31, 2018)(1) Consolidated results of operations
Net sales(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Operating profit

Million yen%

Million yen%

Million yen

Three months ended Mar. 31, 201830,111
3.6
570(69.1)
Three months ended Mar. 31, 2017
29,074
27.9
1,845
11.0
Note: Comprehensive income (millions of yen)Three months ended Mar. 31, 2018:
Three months ended Mar. 31, 2017:
Net income per share
Three months ended Mar. 31, 2018
Three months ended Mar. 31, 2017%

Million yen

553 (69.5)
1,810
10.6
180 (down 84.3%)
1,150 (up 13.7%)

148
1,108

%

(86.6)
9.2

Diluted net income per share

Yen

Yen

8.83
66.31

8.68
65.29

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

As of Mar. 31, 2018
78,097
17,934As of Dec. 31, 201780,03919,140
Reference: Shareholders’ equity (millions of yen)
As of Mar. 31, 2018: 16,583

Yen

21.2
985.9722.3
1,059.91
As of Dec. 31, 2017: 17,818

2. Dividends
1Q-endDividends per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

2017
0.00
2018
2018 (forecast)
0.00
Note: Revisions to the most recently announced dividend forecast: None

-

82.70

82.70

-

82.80

82.80

3. Consolidated Forecast for 2018 (January 1 to December 31, 2018)
Net sales
Million yen

Operating profit%

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

Ordinary profit%

Million yen%

Yen

First half
61,0647.4
1,154 (61.3)
1,050(64.4)
Full year
145,137 14.1
7,288
3.2
7,083
1.1
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

656
4,635

(68.2)
0.5

39.04
275.73

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly
Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated
Financial Statements” on page 10 for further information.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Mar. 31, 2018:16,940,500 shares

As of Dec. 31, 2017:16,932,500 shares

As of Dec. 31, 2017:

120,846 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2018:

120,876 shares

3) Average number of shares during the period
Three months ended Mar. 31, 2018:

16,815,313 shares

Three months ended Mar. 31, 2017: 16,710,998 shares* The current financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements, and other special items
Forecasts of future performance in this document are based on assumption judged to be valid and information currently
available to the Company’s management. Actual results may differ materially from the forecasts for a number of reasons.
Please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated
Forecast and Other Forward-looking Statements” on page 5 for forecast assumptions and notes of caution for usage.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

5(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

5

2. Quarterly Consolidated Financial Statements and Notes

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income

8

Quarterly Consolidated Statement of Income
For the Three-month Period

8

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period

9(3) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Changes in Significant Subsidiaries during the Period

10

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements 10
Segment Information

11

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of 2018, the slow recovery of the Japanese economy continued with the support of firminternal and external demand. The pace of economic growth was somewhat slower mainly because of the yen’s
appreciation and the rising cost of crude oil. In the March Bank of Japan tankan report, a business sentiment
diffusion index of large companies and manufacturers was 24, 2 points below the previous survey in December
2017 and the first decline in two years. The primary cause was increasing expenses associated mostly with thehigher cost of raw materials, the yen’s appreciation and Japan’s labor shortage. Nevertheless, business sentimentis still at approximately the same high level as it was before the start of the global financial crisis. However, theemployment conditions diffusion index declined further because of Japan’s persistently tight supply of labor. In
addition, the average job openings-to-applicants ratio in the first quarter of 2018 has remained high at 1.59,
showing that the labor shortage at companies is becoming increasingly severe.
In the core Human Resources and Education Business, the operating environment is on the verge of a significant
shift caused by 2013 amendments to the Labor Contracts Act, and 2015 amendments to the Worker Dispatching
Act. The performance of the World Holdings Group benefited significantly from the ongoing implementation of
our medium-term management plan. This plan has the goal of establishing a new position for our group in thehuman resources and education sector by creating new businesses and services.
In the Real Estate Business, first quarter sales and earnings declined. The cause was adjustments to the timing ofsome property sales associated with development projects to reflect market conditions. The national ave rage
official land price announced by the Ministry of Land, Infrastructure, Transport and Tourism has increased forthree consecutive years. The renovation business, which is the most important activity in this business, continued
to perform well. As a result, we made progress with building a balanced profit structure based on the goals of themedium-term management plan.
The performance of the Information and Telecommunications Business, where Japan’s mobile phone sector is at
the saturation level, benefited from activities in prior years to build a network of outstanding stores, upgrade
customer services and make other improvements. Sales and earnings were higher as the number of smartphones
sold increased significantly.
Net sales increased 3.6% year on year to 30,111 million yen. Operating profit decreased 69.1% to 570 million yen,ordinary profit decreased 69.5% to 553 million yen, and profit attributable to owners of parent decreased 86.6%
to 148 million yen.
Results by business segment are described below.
Factory Staffing Business
Sales in this segment were supported by large contracts primarily in the semiconductor and machinery sectors andby the growth in the provision of logistics workers, which is a major strength of the Factory Business. Extensiv enegotiations to increase fees in order to reflect the higher value of the people we send to client companies also
contributed to sales.
We have been receiving increasingly larger orders as companies requiring workers recognize the World HoldingsGroup’s outstanding compliance with amended laws, transparency of operations, and commitment to training andretaining people. To handle these large projects, we are making numerous up -front investments. For example, we
hired several hundred people and started giving them skills needed for assignments in order to be prepared forupcoming projects. There were also training activities and the establishment of a new administrative structure inorder to prepare for the opening of a new location in the second quarter or later that will serve logistics
companies.
The number of people registered on our Job Paper website is now more than 53,000 as we continue to add moretarget segments for our recruitment activities. Furthermore, the number of new graduates that we recru ited wasabout 240 in the first quarter, almost twice as many as one year earlier. All of these new people were quickly
given assignments.
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WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

In Fukushima prefecture, a project we have been performing on an outsourcing basis to find employment forpeople affected by the March 2011 earthquake and tsunami has created jobs for more than 15,000 people during
the eight-year period since this disaster. In addition to this employment assistance project, we operate the Job
Department Store that helps women raising children to find work, started operating a telework base and haveother activities to create jobs for people affected by this disaster.
As a result, sales were 11,320 million yen, up 29.6% year on year and segment profit decreased 7.6% to 653
million yen.
Technology Staffing Business
There is strong demand in Japan for engineers specializing in the fields of mechanical design development andsystem design development. We upgraded training capabilities in order to provide a stable supply of theseengineers, which resulted in more growth in the number of people on assignments and sales. To handle theincreasing number of contracts in this business, we expanded operating bases to Sendai, Utsunomiya and other
cities. This creates a sound infrastructure for continued growth in this business category.
We have been working on growth of the education and training business for some time. We invested in the
training of mechanical design engineers, a program that uses CATIA and other courses with the support of Advan
Inc., and for the training of system integration engineers that includes Java programming and other training. In
the construction section, which specializes in construction engineers, we upgraded training programs for Tfas andother CAD skills. This course gives people with no experience in this field a way to acquire the knowledge
required for construction project assignments.
To recruit sufficient numbers of people, we used our enlarged training activities to increase the number of
inexperienced people we hire. In addition, our new graduate recruiting unit has established strong ties with many
universities. Due to these activities, we hired inexperienced individuals as well as more than 100 new college
graduates during the first quarter.
The repair section, which handles audio-visual products and home appliances, performed well because of thesuccess of a reexamination of business channels. Most significant was a big improvement in the profit margin at
NIKKEN TECHNO CO., LTD., which repairs cameras, due to structural reforms.
SAIHI JOHO SERVICE CO., LTD. (SAINS), a company with much experience handling outsourced projects, wasacquired for the purpose of giving the system design development section a stronger framework for performing
outsourced work. SAINS is included only in the consolidated balance sheet in the first quarter of 2018 and is to
be included in the consolidated statement of income starting in April.
Sales were 3,151 million yen, up 9.9% year on year and segment profit decreased 14.7% to 250 million yen.
R&D Staffing Business
There were many initiatives in this business involving recruiting, training and creating proposals for customers inorder to grow in value-added market sectors, mainly involving chemicals and biotechnology. Taking these ac tions
resulted in higher fees, which contributed to increases in sales and earnings. Other measures included building a
training environment for research personnel, a key element of this business, and further improving the training
environment for supervisory personnel. By developing a team of workers who are loyal to the World HoldingsGroup, our goal is to strengthen our capabilities and workforce retention rate and achieve more improvements inthe quality of our people and services. To recruit new graduates, we concentrated on improvements in our
recruiting organization and methods and our branding in order to attract skilled research engineers. In all, we
recruited about 70 people during the first quarter, mostly people with a master’s or PhD degree.
DOT WORLD CO., LTD. is a clinical research outsourcing company that performs clinical trials for clientcompanies. Sales and earnings were higher than planned because of growth in orders for research projects.
Sales were 1,594 million yen, up 11.7% year on year and segment profit increased 4.6% to 100 million yen.

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

Sales & Marketing Staffing BusinessTo further increase the speed of business model reforms that started in 2017, WORLD STAFFING CO., LTD. wasestablished as a company that specializes in temporary placements based on registrations. To enter fields withmore added value, we reexamined the job categories and business domains and made up-front investments toreinforce administrative sections and make other improvements.
Sales were 1,046 million yen, down 33.5% year on year and segment loss was 12 million yen, compared with asegment profit of 72 million yen in the first quarter of 2017.
Real Estate Business
The Real Estate Business has the strategic objective of maintaining a business portfolio that has a stablefoundation and can aim for the highest possible earnings. In the first quarter, this business continued to generatesales with a well-balanced composition by pursuing this strategy.
The performance of each category of this segment was as follows.
The real estate development business completed the sale of 27.5 condominium units and sold one site for businessuse. The result was property sales of 3,220 million yen. Sales from real estate brokerage and other activities
totaled 699 million yen.
In the renovation business, where the first quarter is usually the busiest period of every year, 162 residences were
sold, mainly at Mikuni Co., Ltd. This was an increase of about 50% from one year earlier. Sales totaled 3,337
million yen. During the first quarter, offices were opened in Saitama and Nara prefectures as this business
continues to expand to more areas of Japan.
In the detached house business, Hoei Construction Co., Ltd. sold 64 custom -built houses. This company has been
the largest builder of custom-built houses in the city of Sapporo for the past two years, according to Hokkaido
Jutaku Tsushin. Sales were 1,608 million yen. By taking advantage of synergies with the World Holdings Group,
Hoei Construction opened a branch in the Sendai area, where the group already has real estate development
activities. This positions the detached house business for more growth.
In the prefabricated house business, Omachi World Co., Ltd. has a rental business and sells prefabricated houses.
Sales totaled 331 million yen.
Sales were 9,194 million yen, down 24.3% year on year and segment profit decreased 79.8% to 217 million yen.
Information and Telecommunications Business
There was a big increase in the number of smartphones sold even though sales of mobile phones are slowing
down in all areas of Japan. The main reason was the success of recent measures to build a network of outstanding
stores. We renovated and relocated stores and gave our people training to improve their customer interaction
skills. Although sales were higher, earnings were down from one year earlier because of upfront investments in
the 16 stores added during 2017 and employee training programs.
This business also includes services that enable small and midsize companies to cut costs. We started a sales
agent business for the distribution of LED lights and other products and now have a large number of distributors
for these products. This gives us a sound base for increasing sales of these products.
Sales were 3,349 million yen, up 56.6% year on year and segment profit decreased 44.8% to 37 million yen.
OthersAdvan Inc., which operates PC schools, recorded higher sales and earnings because of strong sales in its creative
sector, which covers subjects such as website design and online sales. Fur thermore, Advan significantly
contributed to improve the skills of engineers, mainly in the Technology Staffing Business, by creating synergy
with the Human Resources and Education Business.
Farm Co., Ltd., which operates agricultural parks, and its subsidiary made upgrades to facilities, such as the
addition of exercise equipment, and started preparations for other new activities. The objective is to attract more
4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

people during the busy spring season. Also, by using synergies with other World Holdings Group companies,
Farm played an instrumental role in receiving a management outsourcing contract to operate the Kitakyushu
Municipal Agriculture Center for the city of Kitakyushu. The center is operated by World Mikuni Joint Venture,
which is led by World Intec Co., Ltd. and includes Mikuni and Farm.
Sales were 454 million yen, up 152.5% year on year and there was a segment loss of 196 million yen, comparedwith a segment profit of 13 million yen in the first quarter of 2017.
(2) Explanation of Financial Position
AssetsTotal assets decreased 1,942 million yen from the end of 2017 to 78,097 million yen at the end of the first quarterof 2018. This was mainly due to a decrease of 4,546 million yen in cash and deposits, increases of 356 million
yen in merchandise and finished goods, 812 million yen in real estate for sale, and 774 million yen in real estate
for sale in process.
Liabilities
Total liabilities decreased 736 million yen from the end of 2017 to 60,163 million yen. This was mainly due toincreases of 634 million yen in short-term loans payable to fund purchases of real estate for sale, 477 million yen
in provision for bonuses, decreases of 1,011 million yen in income taxes payable and a 1,091 million yen in
long-term loans payable.
Net assets
Net assets decreased 1,205 million yen from the end of 2017 to 17,934 million yen mainly due to a 1,245 million
yen decrease in retained earnings.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The Company maintains its first-half and full-year consolidated forecasts that were announced in the“Consolidated Financial Results for 2017” on February 13, 2018.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of 2018
(As of Mar. 31, 2018)2017(As of Dec. 31, 2017)
AssetsCurrent assets
Cash and deposits

18,227

13,680Notes and accounts receivable-trade

10,204

9,898

Merchandise and finished goods
Real estate for sale
Work in process
Real estate for sale in process
Deferred tax assets
Other
Allowance for doubtful accounts

889

1,246

12,324

13,137

117

137

24,68425,459

416

423

3,499

4,767

(48)

(47)

70,31568,703

4,707

4,759

1,552

1,402

368

344

1,921

1,747

Investment securities

821

576

Deferred tax assets

659

661

Lease and guarantee deposits

847

869

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Other

845

858

Allowance for doubtful accounts

(77)

(77)

Total investments and other assets

3,094

2,888

Total non-current assets
Total assets

9,724

9,394

80,03978,097

1,286

1,647

Liabilities
Current liabilities
Notes and accounts payable-trade
Accounts payable-real estate

1,187

817

Short-term loans payable

33,09433,729Accrued expenses

5,827

4,957

Income taxes payable

1,509

498

Accrued consumption taxes

1,323

1,137

72

550

Provision for bonuses
Other

4,874

6,174

Total current liabilities

49,17549,511

9,566

8,474

547

572

1,181

1,236

428

367

11,724

10,65260,89960,163

Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

(Millions of yen)First quarter of 2018
(As of Mar. 31, 2018)2017(As of Dec. 31, 2017)
Net assets
Shareholders’ equity
Capital stock

768

773

Capital surplus

949

955

Retained earnings

16,16914,923

Treasury shares

(126)

(126)

Total shareholders’ equity

17,761

16,526

Valuation difference on available-for-sale securities

36

38

Foreign currency translation adjustment

116Remeasurements of defined benefit plans

911

Accumulated other comprehensive income

Total accumulated other comprehensive income

57

57

133

130

Non-controlling interests

1,187

1,219

Total net assets

19,14017,93480,03978,097

Subscription rights to shares

Total liabilities and net assets

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)(Millions of yen)First three months of 2018
(Jan. 1 – Mar. 31, 2018)

First three months of 2017
(Jan. 1 – Mar. 31, 2017)
Net sales

29,074

30,111

Cost of sales

23,256

24,909Gross profit

5,818

5,201

Selling, general and administrative expenses

3,973

4,631

Operating profit

1,845

570

Non-operating income
Subsidy income

5

9

Other

38

35

Total non-operating income

4345Interest expenses

57

47

Other

21

15

Total non-operating expenses

78

63

1,810

553

-

11

Non-operating expenses

Ordinary profit
Extraordinary losses
Loss on disaster
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8

-

11

1,810

541

662

359

1,148

181

40

33

1,108

148

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)First three months of 2017
(Jan. 1 – Mar. 31, 2017)(Millions of yen)First three months of 2018
(Jan. 1 – Mar. 31, 2018)

1,148

181

Valuation difference on available-for-sale securities(4)2

Foreign currency translation adjustment

(1)

(6)

ProfitOther comprehensive income

Remeasurements of defined benefit plans, net of tax

7

2

Total other comprehensive income

1

(1)

1,150

180

1,111

148

39

32

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

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity

Not applicable.
Changes in Significant Subsidiaries during the Period
Not applicable.
The following information is provided even though these three actions were not a change in a significant
subsidiary.
SAIHI JOHO SERVICE CO., LTD. became a consolidated subsidiary in the first quarter of 2018 following theacquisition of its shares by the Company on February 28, 2018.
NIKKEN SERVICE CO., LTD., which was a consolidated subsidiary in 2017, is no longer included in the
consolidated financial statements because this company was dissolved following its absorption and merger withconsolidated subsidiary NIKKEN TECHNO CO., LTD. on January 1, 2018.
WORLD STAFFING CO., LTD., which was a non-consolidated subsidiary in 2017, is included in the
consolidated financial statements starting in the first quarter of 2018 because of the increasing significance of thiscompany.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
The tax expenses are calculated by first reasonably estimating the effective tax rate after the application of tax
effect accounting with respect to profit before income taxes for the fiscal year in which the quarter under review
falls, and multiplying that rate by the profit before income taxes for the quarter under review. However, theCompany uses legally stipulated effective tax rates to calculate tax expenses for cas es in which using estimatedtax rates gives a noticeably irrational result.

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

Segment Information
I. First three months of 2017 (Jan. 1 – Mar. 31, 2017)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni- Subtotal
Staffing
Business Business BusinessBusinesscations
Business
Business
Net sales
Sales to externalcustomers
Inter-segment
sales andtransfers

Others(Note 1)

Total

Amounts
shown onAdjust- quarterly
ments consolidated(Note 2) statement ofincome(Note 3)

8,738

2,866

1,426

1,572

12,1512,138

28,894

180

29,074-29,074

-

113

-

126

4

3

247

15

262

(262)

-

Total

8,738

2,980

1,426

1,699

12,1552,141

29,142

195

29,337(262)

29,074

Segment profit

706

294

95

72

1,076

67

2,312

13

2,326

(481)

1,845

Notes:

1. “Others” represent businesses not included in reportable segments and include outsourced government agency
tasks, the operation of personal computer schools and other services.
2. The -481 million yen adjustment to segment profit includes elimination for inter-segment transactions of 5
million yen, and -475 million yen in corporate expenses that cannot be allocated to any of the reportable segments.
Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of thereportable segments.
3. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated statement ofincome.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Goodwill was booked in the “Real Estate Business” segment as the Company has acquired the shares of Hoei
Construction and made it a consolidated subsidiary.
The event caused the amount of goodwill to increase by 446 million yen during the first quarter of 2017.
Goodwill was booked in the “Others” segment as the Company has acquired the shares of Farm Co., Ltd. andmade it a consolidated subsidiary.
The event caused the amount of goodwill to increase by 452 million yen during the first quarter of 2017.
Significant gain on bargain purchaseNot applicable.

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the First Quarter of 2018

II. First three months of 2018 (Jan. 1 – Mar. 31, 2018)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni- Subtotal
Staffing
Business Business BusinessBusinesscations
Business
Business
Net sales
Sales to externalcustomers
Inter-segment
sales andtransfers

Others(Note 1)

Total

Amounts
shown onAdjust- quarterly
ments consolidated(Note 2) statement ofincome(Note 3)

11,320

3,151

1,594

1,046

9,194

3,349

29,656454

30,111-

30,111

-

115

-

39

3

4

163

21

184

(184)

-

Total

11,320

3,266

1,594

1,085

9,198

3,354

29,819475

30,295(184)

30,111

Segment profit(loss)

653

250

100

(12)

217

37

1,246

(196)

1,049

(478)

570

Notes:

1. “Others” represent businesses not included in reportable segments and include the operation and management ofagricultural parks, the operation of personal computer schools, the production of websites and other services.
2. The -478 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 12
million yen, and -491 million yen in corporate expenses that cannot be allocated to any of the reportable segments.
Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of thereportable segments.
3. Segment profits (loss) are adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Not applicable.
Significant gain on bargain purchaseNot applicable.

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

12