FY2019
Second Quarter
Financial Results
2019年12月期
決算説明資料
第2四半期

August 19, 2019 (Mon)WORLD HOLDINGS CO., LTD.
First Section of Tokyo Stock Exchange (2429)
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved0Contents
I. Summary of FY2019 Second Quarter Financial Results
・Summary of Financial Results
・Overview of Business Results by Segment (year on year)

・Details of Each Segment
・Financial Condition B/S・Cash Flows

… P3
… P4
… P5
… P14
… P15

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

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

… P17
… P18
… P19
… P20
… P22

Ⅲ. Rolling plan for New Mid-term Managerial Plan 2021
・Review of the performance from 2017 to the first half of 2019・Formulation of a rolling plan for New Mid-term Managerial Plan 2021
・Concept of the rolling plan for New Mid-term Managerial Plan 2021
・Numerical goals for 2021

… P24
… P27
… P28
… P29

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

1

Ⅰ. Summary of FY2019 Second Quarter Financial Results

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved2Summary of Financial Results⚫ Sales and profit grew year on year. The forecast has been revised upwardly, because profit
exceeded the initial estimate considerably, mainly thanks to the Real Estate Business. The full-year
earnings forecast has not been revised.
⚫ All segments, including Human Resources and Education Business, which is performing well and ourmainstay, earned profits exceeding the initial estimates.
(Unit: Million yen)

2018/2Q
actual*2019/2Q
initialestimate

2019/2Q
actualResult against
estimate

YoY

Surplus

ChangePct.
ChangeNet sales

64,37966,514

66,827＋312+2,447+3.8%

Operating income

2,005

1,057

2,529

＋1,472+524+26.2%

Ordinary income

2,001

992

2,529

+1,537+528+26.4%Net income attributable to

1,079

605

1,685

+1,080+606+56.2%

owners of parent*Announced on February 12, 2019
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved3

Overview of Business Results by Segment (year on year)

2018/2Q
actualUnit: Million yen(Profit margin)

2019/2Q
actualYOY(Profit margin)

ChangeFactory BusinessTechnology BusinessNet sales

23,332
1,392
7,029
604
3,336
247
1,847
-60
35,544
2,183
20,416
784
6,741
73
1,675
-130
64,379Elimination or
corporate-905

Operating income

2,005

Net sales

11,861
550
8,555
234

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(6.0%)(8.6%)(7.4%)－(6.1%)(3.8%)(1.1%)－

23,913
1,137
8,220
774
3,504
263
1,695
-33
37,333
2,142
20,377
1,227
6,999
48
2,117
196
66,827(4.8%)(9.4%)(7.5%)－(5.7%)(6.0%)(0.7%)(9.3%)-1,086(3.1%)

2,529(3.8%)

Pct. Change

580
-254
1,191
170
167
16
-151
26
1,789
-40
-39
443
257
-24
441
327
2,447

2.5
-18.3
16.9
28.1
5.0
6.7
-8.2
－
5.0
-1.8
-0.2
56.5
3.8
-33.4
26.4
－
3.8

-180

－

524

26.2

-1,054
463
1,015
-20

-8.9
84.2
11.9
-8.5

<Reference>
Real EstateBusiness

Developm ent/Single-fam ily
housing

Segment income

Renovation/PrefabricatedhousesSegment income

Net sales(4.6%)(2.7%)

10,807
1,013
9,570
214

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved(9.4%)(2.2%)

4

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

Response to the changing external environment, including the amendment of laws
⇒Steadily promoted measured upfront investment from the medium- and long-term perspective in order to raise thebrand strength (capability of gathering workers)
Stagnant IT-related demand influenced by the overseas environment⇒Factory Business was partially affected, but there was no significant impact on Technology or R&D Businesses.

◆ Sales composition◆ Segment income
Up 5.0%(Million yen)

38,29940,000

4.6%
9.5%

35,54435,0005.2%
9.4%

30,00037,333
Down 2.5%

22.3%

19.8%

4.5%
9.4%
22.0%

YoY
(Based on
monetary
amount)

-8.2％
+5.0％
+16.9％

25,0002,500

Up 8.8%

2,183
1,968

11.3%

2,000

2,142
12.3%

14.8%

27.7%

1,500

36.2%

27.7%

1,000

20,00063.8%

15,00010,000

Down 1.9%(Million yen)

65.6%

64.1%

63.6%

+2.5％

500
0

5,000
0

-2.7%

-500
2018/2Q
Factory

estimate

Technology

R&D

actualSales & Marketing

53.1%

-1.7%

-1.5%

2018/2Q

2019/2Q

actual

59.2%

actualFactory

Technology

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

2019/2Q
estimate
R&D

actualSales & Marketing5

Human Resources and Education BusinessOverall Segment<Factors in Changes of Segment Income>⚫ We proactively made upfront investment in human resources development in an effort togain a new position in the field as a group of highly advanced engineers.
⇒Aiming to broaden the client base, further grow our company, and lay the groundworkfor new businesses for the future○Factory Business
Enrichment of training programs at “Technical Center”⇒ Development of personnel in advanced fields, such as equipment
maintenance
Development of managers for “establishment of a new logistics base”

53(Million yen)

210

-304

○Technology Business“Training in 3D-CAD” “Training in production engineering”
Broadening the scope of “programming training” “Infrastructure training”
Assistance in obtaining qualifications○R&D BusinessTraining of personnel in advanced fields at the collaborative research lab ofan affiliated university“Training centered around ‘Hospitality Mind’”2,183

2018/2Q
ActualIncrease in Rise in unit priceworking staff

Variousinvestments

2,142○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 employedworkers

2019/2Q
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>⚫ Factory Business was affected by the partial reduction of production of smartphones, semiconductors,
etc., but the growth in the distribution field covered it.
⚫ Technology Business saw a significant increase in the number of staff, through the enrichment of ourscheme for training and assigning engineers, early assignment of new graduates, the increase of majorclients due to enhanced marketing, etc.
◆ Variation in the number of staff (3-month average)*（Persons）
YoY

25,00020,00018,29515,000

2,502
995
2,037

20,193

20,179

1,191
1,052
2,328

1,228
1,036
2,386

15,622

15,5292018/2Q

2018/3Q

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

19,88920,703

2,639

+171
+41
+311

15,151

15,609-13

2019/1Q

2019/2Q

1,261
1,005
2,472

1,362
1,093

10,00016,782

12,7615,000

0
2017/2Q
Factory

Technology

2018/12
R&D

Sales & Marketing*The number of staff in Factory Business includes external staff members accepted from other companies.

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

7

Human Resources and Education Business

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

Although the production amounts of some smartphones, semiconductors, etc. decreased, sales grew steadily in the distribution field,
where we excel. In addition, we focused on the development of leaders, for further business expansion into other fields.
We concentrated on the training and assignment of personnel in advanced fields of FC technologies, such as equipment
maintenance.
Developed a new solution package for clients, while expecting the enforcement of the policy of equal pay for equal work.
⇒Secured transactions from the next term, by stirring up latent demand.

⚫
⚫

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

30,00025,000Up 2.5%23,332

24,344
Down 1.8%(Million yen)

1,800

1,400
17.9%

+11.2％

2.4%
5.6%
13.1%

-16.8％-46.2％
+4.1％

12.9%
3.2%

4.3%

+35.4％

34.1%

36.8%

+10.7％

16.5%

20,00015,0002.9%
10.7%

10,000Continuation of growth investment in preparation for
endeavors like the reconstruction of a HR system
and nurturing of human resources.

Down 18.3%

1,600

23,913◆ Variation in the number of staff (3-month average)

1,392

18,00016,00014,000

1,165

1,200

*Parentheses signify the number（Persons）
of new employees.

Down
2.4%

1,137

15,622[239]

15,609
[274]

4,584

4,618

1,477

1,411

9,561

9,580

2018/2Q

2019/2Q

12,0001,000

10,000

800

8,000

600

6,000

400

4,000

200

2,000

5,000
20.0%

19.7%

+4.2％

0
2018/2Q
actualElectric & Electronics
Semiconductors
Others0
2019/2Q
estimate
Logistics
Machinery0
2018/2Q
actualactual2019/2Q
estimate
actualAutomobiles
Environment & Energy*We have not disclosed the sales estimate by segment.

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

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, strengthening of sales increased business partners related to the information and telecommunication
services.

⚫

*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

Up 16.9%(Million yen)

9,000

8,554

8,000
7,000
6,000
5,000
4,000

◆ Segment income

Down
3.9%

8,220

YoY
(Based on
monetary
amount)◆ Variation in the number of staff (3-month average)（Persons）*Parentheses signify the numberof new employees.

(Million yen)

900

3,000

Up 28.1%
774

800

7,029

Up 42.3%

34.9%+30.5％

31.3%

700

8.0%
4.7%
16.0%

17.1%

+43.6％
+1.4％
+9.2％

3,000

544

392

2,000

500
1,500
400

1,234

1,515

1,000

300

2,000

2,328
[111]
306

604
600

6.5%
5.5%

2,500

2,639
[175]

200
36.4%

39.7%

500

+7.0％

1,000

100

0
2018/2Q
actualSemiconductors
Machinery
Othersestimate

2018/2Q
actualactual732

2018/2Q

2019/2Q

00
2019/2Q

788

2019/2Q
estimate
actualInformation and telecommunications service
Automobiles*We have not disclosed the sales estimate by segment.

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

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 increased transactions with existing clients in the bio field, including materials, chemical
synthesis, and analysis.
With the aim of evolving from “a staffing company” to “a technical support enterprise,” we try to rigorously select and recruit excellent
researchers and train personnel in advanced fields at the collaborative research lab of an affiliated university.
The clinical research outsourcing (CRO) segment steadily proceeded with clinical trials entrusted by enterprises, in parallel with thestructural reform of DOT World Co., Ltd.

⚫
⚫

◆ Sales composition by business segment(Million yen)

3,000

YoY
(Based on
monetary
amount)Up 5.0%

4,000
3,500

◆ Segment income

3,654
Down
4.1%

3,336
13.1%
7.6％

(Million yen)

12.7%

+1.7％

7.3%

+2.1％

291

300

Down 9.6%

263

247

39.8%

41.6％

＋0.4％

1,052
[66]

1,000

100

1,093
[96]
82

800

600

150

952

100

1,000

1,200

250
200

1,500

1,011

400

50
40.2%

37.7％

500

*Parentheses signify the number（Persons）of new employees.

Up 6.7%

3,504

2,500
2,000

350

◆ Variation in the number of staff (3-month average)+11.8％

0
2018/2Q
actualPharmaceutical/biotechnology

200

0
We are proceeding withstructural reform.

-50
2019/2Q
estimate
ChemicalClinicalactualThe Researcher
Dispatch segment
expanded steadily.

Clinical（outsourced to
DOT）2018/2Q
actual0

2019/2Q
estimate

Clinical（outsourced to
DOT）2018/2Q

2019/2Q

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

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

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 stance ofpurchasing and delivering with suitable timing, by making use of our information and networks.
Meanwhile, some properties were delivered ahead of schedule.
⚫ Keeping subsequent terms in mind, we are preparing for new initiatives like conversion.
◆ Sales composition by business segment
Down 0.2%(Million yen)

◆ Segment income

Continuation of risk control in the development-related
segment

25,000Up 2.8%20,41620,000

YoY(Based on
monetary
amount)20,377

19,517

Up 56.5%(Million yen)

1,400

1,227
1,200
1,000

41.9％

47.0%

15,00010,000+11.9％

800

784
Up 460.3%

600

14.8%
21.3%

+44.7％
400

5,000

219

43.3%
31.6%

-27.2％

0200
0

2018/2Q

2019/2Q

actualestimate

Development-related

Single-family housing

2018/2Q
actualactual2019/2Q
estimate

actualRenovation-related and others*We have not disclosed the sales and segment income estimate by business segment.

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

11

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

We invested mainly for strengthening the shop business, which is our mainstay (including the personnel development for brushingup their knowledge and ability to attend to customers, and the implementation of store supporting measures) with the aim of sharing
the merits of remaining players. On the other hand, we planned the establishment of a network of excellent shops, and promoted theintegration and closing of stores (43 directly managed stores as of the end of Q2).
In the corporate solutions business on which we focus, we strengthened the sales system from the second half. We developed callcenters for selling new products, etc.

⚫

◆ Sales for each target(Million yen)

◆ Segment income

Up 3.8%

8,000
7,000

Up 4.2%

6,741

6,714

6,999

YoY
(Based on
monetary
amount)

8.6%

9.0%

-1.0％

◆ Corporate solutions(Million yen)

100
80

Comprehensive cost reduction
solutions for corporation

Segment
income

73

6,000
60

5,000
4,000
3,000

48

40
91.4%

91.0%

30

+4.2％

20
LED lighting

Air conditioners forbusiness use

Smartphones

Multifunction
machines

Computers

Internet lines

Telephone system forbusiness use

Monitoring cameras

UTM/servers

Power Producer and
Supplier

Water-saving packing

Water dispensers

2,000

0

1,000
0

-20
2018/2Q
actual2019/2Q
estimate

Mobile phone shop business2018/2Q

actualactualCorporate solutions business2019/2Q
estimate

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

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

12OtherOthers<Sales and major activities>
Farm Co., Ltd., which specializes in the agricultural park business, opened a giant athletics facility “Alps Gym” in “Shiga Agricultural
Park Blumen Hugel Farm” in Shiga Prefecture in March, and the number of visitors to this facility increased 65% year on year.
Measures for attracting customers certainly exert their effect, such as redevelopment of facilities, including “Sylvanian Park” inComorebi Morino Ibaraido in Ibaraki Prefecture (the number of visitors to the park grew 33% year on year).
Advan Inc. achieved sales and operating income that were greater than expected through the education business targeting our groupcompanies and other corporations.

⚫

⚫

◆ Sales◆ Segment income(Million yen)

Up 26.4%

2,500

2,117
1,983

2,000

Up
6.8%

1,673
1,500

YoY
(Based on
monetary
amount)(Million yen)

（Ten thousand）

250

55

-1.8％

50

47.6

50
77.9%

1,000

+28.6％

54.4

150
100

16.4%

Up 14.4%

196Up
752.2%

200

12.8%◆ Number of visiting customers

23

0

45

76.6%

-50

500

-100
0

9.4%

7.0%

2018/2Q
actualAdvan Inc.

+69.2％

2019/2Q
estimate
Farm Co., Ltd.

-150

-130
2018/2Q

actualactual40
2019/2Q
estimate

2018/2Q

2019/2Q

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

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13

Financial Condition B/S⚫ As we conduct careful procurement, real estate for sale increased, and assets and liabilities augmented.
Total assets(Million yen)

Current
assets100,000
80,00079,964

82,076

69,823

71,95860,00040,0000

10,140

10,117

End of FY2018

End of FY2019 2Q

Fixed assets(Million yen)

60,000-3,299 million yen＋4,509 million yen＋2,319 million yen

10,117（-23）

・Total property, plant and equipment＋246 million yen

・Goodwill-306 million yen

Current assets

Total liabilities/net assets

100,000
80,000・Cash and deposits
・Real estate for sale・Real estate for sale in process
Fixed assets

20,00071,958 （+2,135）

79,964

82,076

46,13049,508

11,485

9,923

22,34722,644End of FY2018

End of FY2019 2Q

Liabilities

59,432（+1,815）

・Short-term debt
・Accounts payable-real estate・Income taxes payable
・Long-term debt

＋5,328 million yen-568 million yen-834 million yen-1,131 million yen

40,00020,0000
Net asset

Fixed liabilities

Net assets

22,644（+296）• Retained earnings＋305 million yen

Current liabilities

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14

Cash Flows⚫ Operating CF was minus 5,129 million yen, investment CF was minus 980 million yen, andfinancial CF was plus 2,745 million yen.
(Million yen)

20,000Operating CF

18,000-5,12916,00014,00012,00010,000・ Quarterly net profit before taxes and other adjustments
2,596 million yen
・ Increase/decrease in real estate for sale
-6,828 million yen
・ Paid income taxes, etc.
-1,701 million yen
・ Refunded income taxes, etc.
847 million yen

Term-startbalance of
cash andcash
equivalents＋2,745-980
Term-endbalance of
cash andcash
equivalents

18,8248,000

15,525Investment CF

・Expenditure through the acquisition of property, plant andequipment-592 million yen
・Expenditure for acquiring the shares of non-consolidated
subsidiaries-174 million yen
・Expenditure for acquiring intangible fixed assets-118 million yen

6,000
Financial CF

4,000
2,000

・Increase in short-term debt
3,551 million yen
・Proceeds from long-term borrowing
2,535 million yen
・Expenditure through the repayment of long-term debt
-1,887 million yen
・Payment of dividends-1,397 million yen-3,299 million yen

0
End of Dec. 2018 Operating
営業 CF Investment
投資 CF Financial
財務 CF

End of Q2/2019

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15

Ⅱ. FY2019 Business Forecast

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16

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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17

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)18

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

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

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

19

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
142,894
40,987

6,049
4Q

50,480

4Q

2,986

4Q

4Q

3,390
37,52634,2683Q

2Q

38,45736,314

3Q

66,82736,213

2Q

2,378

1Q

30,1992018/12actual30,614

1Q

2Q

1Q

2019/121Q

2018/122Q actual
1Q

3Q

1,613

570

estimate

2,529

2Q

1,434
30,111

3Q

actual2Q

3Q

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

2,367

2Q

162

1Q

2Q

1,170

1Q

-101 2019/12
estimate

2Q actual

4Q

20

Quarterly Business Forecast by Segment
Human Resources and Education Business

Real Estate Business

52,011

83,361

Information and Telecommunications Business

56,063

12,37675,03820,467 4Q

Net sales

19,024 3Q

23,515

21,546

18,433 2Q 19,854
17,112 1Q 18,445

4Q

3Q

2Q

1Q

37,33319,00718,325

14,821 3Q 13,122 3Q 20,377
3,392

2Q
11,221
1Q

9,194

2Q
1Q

11,898 2Q 12,086

2Q

1Q

1Q

7,619

8,291

3,349

4,008

3,467

2,685 4Q

2,682 3Q

2,618 3Q

2Q

3,186

1Q

2Q

3,528 1Q

855

6,999

793

3,630 2Q

998

3,369

1Q

1,220
454

4Q

4Q
3Q

2Q
1Q

1,169

1,375
607

3Q

2,117

2Q

1,488 2Q

1Q

628

1Q

2018/122019/122018/122019/122018/122019/122018/122019/12actualforecast 2Q actual

actualforecast 2Q actual

actualforecast 2Q actual

actualforecast 2Q actual

5,617

4,589

1,436 4Q

1,344 3Q

1,192 2Q
991

2,143 4Q 2,753

1,587 3Q 2,142
1,140 2Q 1,193

1Q

2018/12actual

2,061 4Q

828

1Q

949

2Q
1Q

1,661 3Q

567

2Q
1Q

217

2019/122018/12

forecast 2Q actual

actual

1Q

157

Some delivery was carriedout ahead of schedule(originally scheduled for 4Q

4,964

Segment income

12,0192,952 4Q

16,773 4Q 23,424 4Q

Other

2,078 4Q

456
400
-181

79

3

1,227

3Q 1,251 2Q
2Q
1Q -23 1Q

5
36

4Q
2Q

37

1Q

-75

3Q

46

34
-3

4Q

3Q

-270
137

2Q

2Q
1Q

66
-196

-88

196

45

48

1Q

-47
-92

79

3Q

224

2Q

323

2Q

2Q
1Q
3Q
4Q

-200
-57

1Q

-126

1Q

4Q

2019/122018/122019/122018/122019/12

forecast 2Q actual

actualforecast 2Q actual

actualforecast 2Q actual

2Q

3Q

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

4Q

21

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

22

Ⅲ. Rolling plan for New Mid-term Managerial Plan 2021

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

23

Review of the performance from 2017 to the first half of 2019 (1)Our performance has been in line with the new mid-term managerial plan 2021 (putting
importance on sales growth) as a whole.

Sales[million yen]Previous mid-term managerial plan

New mid-term managerial plan

Emphasis on profit（Structural reform）

Emphasis on sales growth（Decline in profit rate due to investment）

Mid-term goal

Actual123,846
84,940 87,984

127,147

140,063

142,894

100,100 94,334

70,583 68,829

Operatingincome[million yen]

Mid-term goal

7,407

Actual7,064

7,025 7,370

6,270

5,137
3,748

5,019

3,695

2,720

2014/122015/122016/122017/12

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

2018/1224

Review of the performance from 2017 to the first half of 2019 (2)Previous mid-term managerial plan

New mid-term managerial plan for 2021

（Million yen）

80,00060,000

Human
Resources andEducation
Business（Million yen）

6,000

Mid-term target sales (left)
Profit was higher than the estimate.
Actual sales (right)
Mid-term target segment income (right)
Actual segment income (right)

5,000

40,0004,000

20,000

3,000

0

2,000

Profit rate（initial
forecast⇒actual）

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%【Activities so far】
Upfront investments for future growth⇒Strengthening of the personnel development system, the reform of theevaluation system, and organization development＝The improvement in technologies and skills and the development ofsystems for growth progressed.
The preparation for proceeding to the next stage was completed.

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

Sales: 〇Profit: 〇25

Review of the performance from 2017 to the first half of 2019 (3)Previous mid-term managerial plan

New mid-term managerial plan for 2021

（Million yen）

60,00040,000Real EstateBusiness（Million yen）

6,000

Bubble-like situation
Mid-term target sales (left)
Actual sales (right)
Mid-term target segment income (right)
Actual segment income (right)

5,000

4,000
3,000

20,000

2,000
1,000

0
Profit rate（initial
forecast⇒actual）

0

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%【Activities so far】
Development-related segment progressed steadily within an
appropriate scale.
We concentrated on the strengthening of other domains, andfueled the renovation business.
＝During the bubble, we secured significant profit surely.

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

Sales：△
Profit：◎26

Formulation of a rolling plan for New Mid-term Managerial Plan 2021

Background of the formulation of a rolling plan
As the M&A market grew rapidly,
we judged that the M&A as an acceleration is highly risky.
The bubble of the real estate market was prolonged than expected.

We respond to changes in the environment, and refrain from expanding our business excessively.

We will partially revise our basic strategy andaim to achieve firm growth.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

27

Concept of the rolling plan for New Mid-term Managerial Plan 2021

Pursuit for “our uniqueness” when implementing our basic
strategy
What are the “unique characteristics” of WORLD HOLDINGS?
After accurately grasping the mid/long-term potential,…
・We will estimate the appropriate scale of each business, and expand
each business by ourselves. We will strive to grow stably through risk
management, rather than just keeping up with short-term economic
trends.
・We won’t resort to M&A for growth. However, we may conduct M&A
for acquiring necessary functions for our strategy after examining thecorporate value and price calmly.
・We will pursue our unique position in our industry, while triggering
innovation.

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

Numerical goals for 2021
Revision to the initial estimates of sales (200 billion yen) andoperating income (10 billion yen)(For your reference)

2021
Sales
Operating income
ROE
Payout ratio

175 billion yen
8 billion yen
20%30%[100 million yen]2018
142.8 billion yen
7.3 billion yen
23.9%
30.0%
[100 million yen]

2,000

200

Initial plan Rolling plan

1,500

150

1,000

100

500

50

0

0
2018/122019/122020/12

Human Resources and Education

Real Estate

Other

Operating income (right)【Primary reason for revision】
As the bubble was greater than
expected,
we need to tighten risk control in
the real estate business.

Human Resources
and Education
Business has beenquite healthy.

2021/12
Information and Telecommunications

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

Human Resources and Education Business

Human Resources and Education Business (current situation analysis and futurebasic strategies）

Initialassumption

・Amendment to the worker dispatch law, the shortage of manpower, the growth of needs foroutsourcing⇒ Enterprises that cannot respond to the law amendment withdraw.
⇒ Staffing enterprises that comply with the amended law can meet needs.

Environmental ・The survival of the fittest in the industry progresses slowly.
change・Full-scale campaigns for reforming the ways of working

Focus on self-sustaining growth rather than risky M&A
・To become No.1 in the manufacturing fieldBasic strategy⇒ To stick to the target position and implement clear strategies⇒ To cultivate and promote new domains through innovation

・To become a true partner for enterprises and achieve co-sourcing*⇒ To foster management capability, know-how, and advanced skills and organize
them⇒ To develop personnel and organizations from the mid/long-term perspective

・To cement the cooperation between segments and meet new needs⇒ To make more transactions with clients, and meet social needs, such as the dispatchof seniors and sideline business＊

High-level outsourcing in which we separate the core know-how and HR section, which are required for the original business of each client, andsupport the HR section thoroughly, to tackle the managerial issues of each client cooperatively

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved30

Human Resources and Education Business

Human Resources and Education Business (basic strategy) ▶ Position
To become No.1 in the manufacturing field, by strategically investing in personnel development【Entry to advanced fields that are not swayed by economic fluctuations, andformation of a competent team】

Dispatch

Skill

Dispatch ofskilledresearchers andengineers

Undertaking

High

Makers’ tasks

Co-sourcing

Dispatch of teams<HR platform>

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

Current fields ofcompetition

Team

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

Skill

Temporary tasks
Low

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Human Resources and Education Business

Human Resources and Education Business (basic strategy) ▶ Our uniquenessTo actualize co-sourcing and become a true partner of enterprises
Our uniquenessTo become a true partner of enterprises(Co-sourcing)High

Differentiated domain
Capability of offering solutions to managerial
issuesSkills + management education⇒Production of PM/PL(Market trend analysis, and provision of well-organized skilled personnel)

Development

HR platform(To marshal skilled personnel who haveundergone training)

Difficult-to-differentiate domain（Conventional outsourcing）
Capability of staffing

Evaluation

Organiz
ation

Development of a personnel
evaluation system for enabling eachworker to design his/her own
roadmap

Formation of advanced organizations
Expansion of the scope of tasks we
can undertake(ability to secure personnel)

Low

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Degree of competition

32

Human Resources and Education Business

Human Resources and Education Business (basic strategy) ▶ Vision
Combination of segments, and expansion of the base
Personnel

Strengthening of inter-segment cooperation

ー clients
To meet needs fromcomprehensively

R&D
Technology
SI
Factory

Matching

RepairConstructionーTo increase transactions with existing clients

Clients

In the manufacturing field【we aim to become No.1】

Logistics
S&M

Cultivation of
new fields

Elderly people

Maximization of the field where
elderly people can work
(Reform of the recruitment system)

Utilization of personnel in new ways
Dealing with sideline business

Increase of clients【We aim to expand the base】
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

Increase of dispatchedworkers

33

Real Estate Business

Real Estate Business (current situation analysis and future basic strategies)

・Growth of the condominium market, shortage of construction-related workers, foreign visitors to Japan, etc.

Initialassumption⇒ Skyrocketing of land prices and construction-related costs, and the rise in selling prices⇒ Intense demand for hotels (commercial land), strong demand for real estate in the Tokyo Metropolitan Area

Environmental
changeThe bubble in the real estate market was prolonged than expected.

To conduct procurement in the development-related segment more carefully, and review theappropriate scale.

To clarify investment fields and increase our business domains

Revitalization
business

New domain

Basic strategy

・Stable growth of the development-related business within a new appropriate scale
・Focus on promising revitalization businesses (renovation and conversion)

Continued promotion of renovation⇒Enhancement of brand strategies, further expansion of areas, strengthening of sales

Cultivation of new fields, such as conversion⇒ To respond to the growth of demand for shared offices, accommodation facilities, etc. due to the reform ofways of working

Launch of a new real estate business
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved34

Information and Telecommunications BusinessInformation and Telecommunications Business (current situation analysis andfuture basic strategies)

Environmental
change・Agencies are still selected according to career.
・Decline in recurring revenue due to the drop in ARPU. The replacement cycle will get longer.

Future outlook

・Customer needs will be diversified, due to the start of commercial 5G services in 2020

Basic strategy

It is assumed that the trend of integration and closing of mobile phone
shops will be prolonged.
・To continue investment for developing a network of excellent shops⇒ To make shop operation sound and stabilize revenue

・Increase of merchandise in corporate solutions⇒ The degree of impact of the revenue trend of mobile phone shops will
decrease.

To share the merits of remaining players and develop a new revenue model
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved35

OtherOthersSuccess (increase of visitors) of Sylvanian Park <Comorebi Morino Ibaraido (Ibaraki)> andAlps Gym <Shiga Agricultural Park Blumen Hügel Farm (Shiga)＞⇒ These cases will bereferred to when designing revitalization plans for other facilities, and we will make themprofitably early.
Alps Gym

Sylvanian Park

Application of factors insuccess to other facilities© EPOCH

We contribute to local people and culture through Farm Co., Ltd., whichruns agricultural parks as its core business.
⇒To revitalize facilities, and invigorate local communities（To bring up children
through the interaction with nature, and create a variety of jobs）
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved36

Ⅳ. Appendix

Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved37Outline of the new mid-term managerial plan 2021
Expansion with well-balanced business administration
Based on the core business, we will pursue optimal profit performance on an appropriate scale and aim to
expand our existing business through stable growth. Furthermore, we will enter new peripheral fields on
an appropriate scale, and try to offer new services.
＜Second half of the mid-term plan period＞

Entry to the peripheral
fields of the corebusiness＜First half of the mid-term plan period＞

Expansion to the appropriate scaleof the core business《New business fields》
Core business
Human Resources and Education Business

Real Estate BusinessInformation and Telecommunications
Business

Axis of time

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38

Human Resources and Education BusinessSupplementary info of Human Resources and Education Business (basic strategy)
Personnel development process, including the establishment of the HR platform【Strengthening of the system for supporting existing employees in developing their diverse careers】

HR platform

Careerdevelopment

Advanced technicalskills High income実績の浸透

Offering the opportunity for“relearning” for inexperienced workers
Stable employment

environment

A wide array ofchoices

capability of attracting workers

R&D
Tech

Improvement of skills(Including career switch, for example, from FC to Tech)SIFC

A thorough human resource training program

To support workers in“relearning” and provide
them with an environment
where they can work for along period of time

Staffing
Clarification of the roadmap of each employee through the development of a personnel system

Creation of
a newpopulation

capability of gathering workers

Brand development

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39

Human Resources and Education Business

Estimated number of staff in the rolling plan for the new mid-term managerial plan 2021

31,451（Persons）
30,00027,46325,00021,57720,000

1,335
1,023
2,437

4,400

24,455

3,200

1,180

2,200
980

1,080

4,451

3,790

3,241

15,00010,00019,39318,034

16,782

21,4205,000

02018/12
Factory

2019/122020/122021/12

Plan

Plan

Plan

Technology

R&D

Sales & Marketeing

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

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

40Real Estate BusinessSupplementary info of Real Estate Business (basic strategy)
Business portfolio we aim to develop by carrying out local strategies【Actualization of a profit structure that won’t be easily swayedby economic fluctuations】
One-time revenue
business
Development/Single-family housing

ProfitEntry to newfields and regions

Effects of market fluctuations

One-time revenue
business
Recurring-revenue
business

Revitalization business(renovation and conversion)

FutureIn parallel with the strengthening of recurring-revenue business, we will optimize
the turnover of fund.
⇒At right timings, we will be able to(1) start active procurement, and (2) launch new businesses, etc.
Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

41

For More Information

Norio Nishihara
Public Relations and Investor Relations Department

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

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