FY2012 First Quarter Supplementary Information

May 7, 2012
World Intec Co., Ltd
JASDAQ (2429)

1
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

Content
1. FY2012 Plan ................................................

4

2. First Quarter Financial Results…................

9

3. Highlights and Medium-term Vision ..............

19

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved2World Intec Group ： Three Core Businesses

Group

World Intec Co., Ltde-support, Inc.
・ Call center business

World Online Co., Ltd
・ Corporate business
・ OA equipment sales

Network Solution Co., Ltd.
・ Softbank shop business・ WILLCOM shop business

World Residential Co., Ltd.
・ Condominium business・ Condominium management business・ Contract selling business

Nichimo Real Estate Co, Ltd.
・Contract selling business・ Real estate consulting business

World Resiselling Co., Ltd.
・ Selling agency
・ Contract selling business

Mobile Service Co., Ltd.
・ au shop businessBest IT Business Co., Ltd.
・ Corporate business

World iCity Co., Ltd.
・ Condominium business・ Selling agency
・ Contract selling businessContract selling business・ Selling agency
・ Contract selling business

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

R&D business ・・・・・・・・ Dispatch of researchers
Technology business ・・ Dispatch of engineers
Factory business ・・・・ Dispatch of manufacturers,
Contract work
CB business ・・・・・・・・・ Dispatch of sales personnel
Construction business ・・・ Dispatch of construction
managing engineers
Administrative contract business ・・・Personnel training
Overseas business ・・・・・・・・・ Parts procurement
Repair business ・・・・・・・・ Repair service

WORLD INTEC TAIWAN
CO., LTD.
Overseas business…..Dispatch of manufacturers

Advan Co., Ltd.
Education business・PC school operations, educational
materials, software sales
GEOGRAPHIC INFORMATION OF
KYUSHU, INC.

・Map information sales

・Entrusted systemdevelopment
・Disabled persons’ employment support, education

WORLD INTECSHANGHAI CO., LTD.
(non(consolidated)
・Comprehensive human resources service
・Education consulting3Summary of Financial Results for FY2012

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

4

FY2012 Group Management Target
In FY2012, World Intec Group aims for consolidated sales of ¥50 billion!
OthersMillion yen

YoY＋8.0％
Real estate

YoY＋412.9％
Information technology &telecommunications

YoY▲2.5％

R&D
YoY＋29.9％
Technology

YoY＋5.1％
Factory

YoY＋28.0％

FY10 actual

FY11 actual

FY12 plan
OthersOthersReal estate

Real estate

Information technology &telecommunications
R&D

Information technology&
telecommunications

R&D

Technology
Factory

Technology
Factory

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5

Business Summary by Segment(Million yen)

FY11/12Net sales

Factory business

Segment income
Profit margin
Net sales

Technology business

Segment income
Profit margin
Net sales

R&D business

Segment income

FY12/1215,722
596
3.7％

5,982
327
5.5％

2,502
241

Profit margin

9.6％

Net sales
Information technology &telecommunications
Segment income
business
Profit margin

9,176

Real estate business

1,514

Segment income△75

Net sales
Segment income
Profit margin

Total

2.3％

Net sales

Profit margin

Other businesses

213

△4.9％

2,994
157
5.2％

Net sales

37,892Elimination or corporate△873

Operating income
Operating margin

588
1.5％

20,120
1,026
5.1％
6,286
405
6.4％
3,250
278
8.6％
8,950
270
3.0％
7,769
165
2.1％
3,235
204
6.3％
49,611
△988
1,361
2.7％

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YoY
ChangePct. change

4,398

28.0%

430

72.1%

－

－

303

5.1％

78

23.8％

－

－

747

29.9％

37

15.4％

－

－

△226

△2.5％

56

26.7％

－

－

6,254

412.9％

240

－

－

－

240

8.0％

46

29.5％

－

－

11,719

30.9％
-

773

131.6％－－

6

Summary of FY2012 Consolidated Business Forecasts
Growth in sales of Human resources education business and improvement in profit margin
Improvement in profit margin of Information technology & telecommunications businessContribution of profitable Real estate business(Consolidated)

YoY change
FY11/12 actual

FY12/12 plan

(Million yen)

Net sales
Operating income
Operating margin
Ordinary income
Ordinary income margin
Net income
Net income margin

ChangePct. change

37,892

49,611

11,718

30.9%

588

1,361

773

131.6%

1.5%

2.7%

－

－

678

1,306

628

92.7%

1.7%

2.6%

－

－

214

645

431

201.4%

0.5%

1.3%

－

－

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7Quarterly Business Plan

(At the time of the February 13 Earnings Announcement)

In 1Q, costs for recruitment and education of personnel to meet large demand will be incurred in advance and sales
promotion cost in the real estate business toward holidays in May will be incurred in advance that the company
expects to post an operating loss temporarily but plans a substantial contribution to profit from 2Q. (Explanations on
profitability in 1Q on the following pages)
16,000

FY09/12

FY10/12

FY11/1215.0%

FY12/12 (est.)

13.0%

14,000

11.0%
12,0009.0%
10,000
7.0%
8,000
5.0%
6,000
3.0%
4,000

1.0%
0％

2,000

-1.0%

0

Sales
Operating margin

-3.0%
09/
1Q

2Q

3Q

7,533
-2.0%

7,194
2.8%

6,959
1.0%

4Q

10/
1Q

2Q

3Q

7,406
3.6%

7,652
2.0%

7,926
1.7%

7,886
-0.6%

4Q

11/
1Q

2Q

3Q

4Q

12/1Q 2Q
(est.) (est.)

8,644
1.2%

9,806
5.0%

8,920
0.3%

9,283
-0.2%

9883
0.9%

10506 13898 13528 11677-0.4% 2.7%
4.5%
3.5%

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3Q(est.)

4Q(est.)

8

First Quarter Financial Results

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved9First Quarter Overview: Exceeded the 1Q Budget
Human resources business covered losses incurred as a result of the bankruptcy of Elpida due
to increase in sales from existing customers. Fukushima Prefecture’s “Kizuna Project” which
belongs to “Other businesses” segment is also doing well that sales exceeded the initial plan.
Information and telecommunications business showed its ability as Kyushu’s No.1. As a result,sales and earnings increased compared with the budget.
In the Real estate business, sales exceeded the budget for condominiums which werescheduled to be delivered in 1Q.
Operating income was down 370 million yen compared with the previous fiscal year because thecompany posted a profit (340 million yen) due to buying and selling of real estates (about 1.3
billion yen) in the previous fiscal year.
Posted Elpida’s debts of 67 million yen as allowance for doubtful accounts but profits exceeded
the budget.

1Q budget
2012/1Q
Net sales

1Q actual
2012/1Q

Budget variancePrevious 1Q
2011/1Q actual

10,506

11,957+1,451

9,806

Operating income

▲48

118

+166

487

Ordinary income

▲62

103

+165

608

Net income

▲93

64

+157

431

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10Overview of FY2012 First Quarter: Progress in Businesses
Doing well by overcoming challenges and responding to booming demand!

Encouraged by the eased restrictions due to the Worker Dispatch Law, the company responded adequately toincreasing demand for human resources.
Strengthened recruitment by locating 12 recruitment centers in Kyushu, Chugoku, Shikoku, Kansai and Kanto.
Invested in education in order to develop a new contract system at logistics centers which will go into full swing
in 2Q.Factory business shifted from semiconductor industry to smartphone-related and e-commerce relatedindustries; Technology and R&D businesses are also performing well contributing to increase in profit margin.

Going strong by selling smartphones through Kyushu’s No. 1 network!

Sold new smartphone and mobile phone models one after another and use of data communication
terminals including tablets and wifi routers spread that the whole market grew strongly.
Expanded its sales network by opening shops handling career wear and combined shops handlingvarious career wear. As a result, number of sales and commissions increased.

Performing well although the real estate market is sluggish!

Condominium business exceeded the plan. Purchased land for 5 properties in 1Q for the next year
and the year after taking business profitability into consideration. Conducted community-based
marketing activities.
Improved its operating base in Tohoku following the earthquake disaster by taking over part ofSuncity Co., Ltd.’s business in March 6.

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11Consolidated Business Results: Expected to Post a Loss in 1Q but Started Off by Making a Profit!
Initially, the company expected to run a loss in 1Q. However, in the Real estate business, Toyotama-Minami
properties other than condominiums were sold (sale of land) and the company posted sales profit. As a result,the company turned profitable.
No changes to 2Q and full-year forecasts at this time.
（Operating margin；％）（Net sales；Million yen）
16,000

FY09/12

FY10/12

FY11/1215.0%

FY12/12 (est.)

13.0%

14,000

11.0%
12,0009.0%
10,000
7.0%
8,000
5.0%
6,000
3.0%
4,000

1.0%
0.0％

2,000

0
Sales
Operating margin-1.0%

09/ 1Q

2Q

3Q

4Q

10/ 1Q

2Q

3Q

4Q

11/ 1Q

2Q

3Q

4Q

12/1Q

2Q (est.)3Q (est.)

4Q (est.)

7,533
-2.0%

7,194
2.8%

6,959
1.0%

7,406
3.6%

7,652
2.0%

7,926
1.7%

7,886
-0.6%

8,644
1.2%

9,806
5.0%

8,920
0.3%

9,283
-0.2%

9883
0.9%

11957
0.9%

12447
1.8%

13528
4.5%

11677
3.5%

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-3.0%

12

Consolidated Business Results: Exceeded the Initial Plan
Sales and profits exceeded the first quarter forecasts
Human resources business, Information and telecommunications business and Real estate businessexceeded the budget
Sales and profits of Fukushima’s “Kizuna Project” in the other businesses segment covered Elpida
Memory’s bad-debt loss and became profitable.
Past quarters and FY12/1Q plan
FY09/12

FY10/12

FY11/12

Quarterly performance comparisons(YoY & vs plan)600

14,000FY12/12 (est.)

11/1Qactual

Sales
Operating margin

10,000

400

8,000

300

6,000

200

4,000

100

2,000

0

Other
Real estate
Information technology &telecommunications
Human resources education
Operating income

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12/1Qactual
5000Operatingmargin12/1Qplan

12,000

11/1Q

12/1Q (est.)

12/1Qjactual

656
1,323
2,016

1,165
981
2,128

1,553
1,232
2,926

5,809
487

6,230
-48

6,245
118

-100

13

Consolidated Financial Summary for FY2012 First Quarter
Sales

Reasons
for increase

Profits

Reasons
for decrease(Consolidated)(Million yen)
Net sales
Operating income
Operating margin
Ordinary income
Ordinary income margin

Net income
Net income margin

In the Human resources education business, sales in the entire segment increased.
In the Information and telecommunications business, sales increased substantially due to strong salesof smartphones.
Sales of Ohanajaya project contributed to the Real estate business. Posted sales from resale of
Minamimotomachi properties in a lump in the previous fiscal year. Developer business will be launchedfrom this fiscal year.
Sales of Fukushima’s “Kizuna” Zukuri Oen Jigyo in the other businesses segment contributed
substantially and CB business which dispatches sales personnel grew.
Due to investment in contract for work in the Factory business in the Human resources education
business, prior investment for the development of a contract system at logistics centers,
investment in new subsidiary in the Technology business, and prior investment for thedevelopment of clinical research outsourcing (CRO) system in the R&D business.

FY11/12FY12/121Ｑ（Jan.-Mar.）actual

1Ｑ（Jan.-Mar.）actual

YoY change
ChangePct. Change

9,806

11,957

2,151

21.9%

487

118

5.00%

0.99%

△369

-

△75.8%

608

103

6.20%

0.86%

△504

-

△83.0%

431

64

4.40%

0.54%

△367

△85.1%

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-

-

-

14

First Quarter Business Summary by Segment
FY11/12FY12/12

YoY change

1Ｑ（ Jan.~Mar.） actual 1Q(Jan.~Mar.)actual

ChangePct. Change

3,856

4,023

167

4.3%

191

29

5.0%

0.7%

1,395

1,528

△161

△84.4%

101

76

7.2%

5.0%

Net sales

558

694

△25

△24.9%

Segment income

65

62

11.6%

8.9%

2,016

2,926

△3

909

△5.2%

6

109

103

－

0.3%

3.7%

－

－

1,323

1,232

338

42

25.5%

3.4%

Net sales

656

1,553

△91
△296

△6.9%
△87.5%

Segment income

18

92

74

400.4%

2.7%

5.9%

－

－

Net sales

9,806

11,957

2,151

21.9%

Elimination or corporate

△234
487

△295
118

5.0%

1.0%

△61
△369

－
75.8%
△

Net sales
Segment income
Profit margin
Net sales
Segment income
Profit margin

Profit margin
Net sales
Segment income
Profit margin
Net sales
Segment income
Profit margin

Profit margin

Operating income
Operating margin

－

133
－

135
－

－

896

－

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－

9.6%
－

24.3%
－

45.1%

－

136.5%－

15

Percentage of Sales by Segment (YoY Comparison)

FY12/11 1Q

FY12/12 1Q¥9,806 million¥11,957 million※ Posting of sales from resale of properties in the Real estate business in the previous fiscal year (FY12/11 1Q) is a special factor

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16

FY2012 First Quarter Balance Sheet (Assets)
Total assets

24,256

Total assets increased 7,130 million yen compared with the end of the previous fiscal
year mainly due to increases in real estate for sale in process and real estate for sale

Total assets

17,126
Total assets
Cash & deposits

3,162

3,349
Accounts receivable 3,891
Real estate for saleassets

7,083

Current assets,

11,505

Real estate for sale

Current assets,

in process

8,707Current assets,
22,207
3,063

15,407

663
Tangible fixed assets 802
Intangible fixed assets 141
Intangible fixed assets 306
Investments, other assets 913
Investments, other assets 940
Fixed assets,2,048
Fixed assets, 1,719
1,057 Fixed assets,1,861

682
Intangible fixed assets 121
Investments, otherin process

Cash & deposits

Real estate for salein process

Tangible fixed assets

Real estate for sale

13,367

Accounts receivable 3,571

3,829

4,657
Accounts receivable 4,609
Cash & deposits

Tangible fixed assets

FY10 (as of Dec. 31, 2010)

FY11 (as of Dec. 31, 2011)

FY12 (as of Mar. 31, 2012)(Million yen)

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17

FY2012 First Quarter Balance Sheet (Liabilities)
Total assets increased 7,130 million yen compared with the end of the previous fiscal year mainly
due to short and long-term debts procured for purchasing real estate for sale in process and realestate for sale

Total liabilities andnet assets

24,256

Total liabilities andnet assets

17,126

Total liabilities andnet assets

Short-term debt

9,776

13,367
Short-term debt

496

Accrued expenses

2,212

Long-term debt

1,761

Current liabilities,

Accounts payable

Current liabilities, Accrued expenses553

6,445

Accrued expenses

2,615

11,112

2,560
Long-term debt

Fixed liabilities,

15,759918

Short-term debt 6,168

2,397

Accounts payable

Accounts payable

Current liabilities,

Long-term debt

2,077

675 Fixed liabilities,

3,100 Fixed liabilities,

3,508

1,052

Net assets,
4,893

Net assets,
4,961

Net assets,
4,988

FY10 (as of Dec. 31, 2010)

FY11 (as of Dec. 31, 2011)

FY12 (as of Mar. 31, 2012)
Million yen

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Highlights and Medium-term Vision

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved19Percentages by Region and by Category in the Core Factory Business2011/12 1Q

2012/12 1Q↗ Growth in the precision equipment field and environmental energy field in Kyushu region and automotive field in Kanto and Tohoku raised thepercentages↘ Showed growth in the automotive field in Tokai region but the percentages dropped due to cancellations in the electrical and electronics field andchemical field following last year’s earthquake disaster
3.5%

2012
/12
1Q

32.2%

2011
/12
1Q

15.3%

9.2%

41.7%

14.1%

7.2%

6.5%

10.1%

3.6%

6.0%

3.9%

6.7%

5.4%

0.5%

0.5%

2.2%

15.6%

13.9%

1.8%
0

Semiconductor

1

Electronics

1

Machinery2

Automobile

2

Precision

Energy3

Chemical3

Food/consumables

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4

Medicine

4

5

Information & communications

5

Others20

Measures from 2Q
Human resources education business
Factory business/Technology business/R&D businessAmong the company’s existing clients, automotive field was strong in 1Q. The company will continue to adequately assign personnel
by keeping a watch on trends from 2Q.
With regard to logistics, the company will pursue work efficiency to earn revenues in the 2nd half from 2Q due to mass hiring in 1Q.
While monitoring the trends in the manufacturing industry, the company will strengthen sales and marketing focusing on growing
industry sectors and do business to increase the entire sales.
Increase sales and improve gross margin rate with an aim to expand shares of highly in-demand Technology business and R&D
business.
Establish a base aiming for an operating profit margin of 5 to 7% in the medium term.

Information and telecommunications businessIn the smartphone and mobile phone selling business, which is No.1 in sales performance in Kyushu, sales exceeded the budget andperformed well due to the growing market needs.
This is expected to continue in 2Q.
Expect to make investments such as in store remodeling and the company will continue to make investments considering the budget

Real estate businessStarted selling and delivering (post sales) condominiums (Residential series) from 1Q.

OthersFollowing the sales of “Ohanajaya” and “Kanamachi”, the completion and delivery of Shinagawa-Nakanobu scheduled for 2Q islikely to increase sales.
Established Suncity’s special purpose company in March to enter Tohoku and executed the plan to enter Tohoku from 2Q ahead ofother companies.
Profitable affiliated companies contributed to the entire group’s profit.
Regarding Fukushima’s “Kizuna” project which is underway in the Administration contract business, the company alreadysecured more orders than last year from April onwards.

The past measures and continued investments are bearing fruit and the company builds a strong basis for
growth that can be reflected in the medium-term management plan while steadily overcoming challenges

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved21Current Situation and Future Market Environmental Recognition
Human resources education business; Can raise market share (operating margin of 5 to 7%)
The entire ratio is on a decreasing trend due mainly to the yen’s appreciation
Increase of companies using services for the dispatch of workers to manufacturing industry
Dominated by private companies as a result of focusing on compliance
Information technology & telecommunications business; Booming demand (operating margin of 3to 5%)

Booming demand associated with expansion of replacement demand for smartphones andtablets
Cloud services for smartphones and tablets will develop; Will compete using World Intec’s sales
force and proposal capabilities (solutions).
Real estate business; Strong demand (operating margin of 10 to 15%)
Condominium contract rate in the Tokyo area remains strong.
Acquisition of sites for medium and small-sized condominiums resulting in severe competition.
Strengthening of foundations in the Tohoku region associated with the reconstruction demand(plan to support Suncity)

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22

5-Year Medium-Term Management Vision; Aim for sales of ¥100 billion!!
Now forming a detailed 3-year management plan. Plan to announce a medium-term
management plan around 2Q.

2016
Group sales exceed¥100 billion!

120,000
100,000
80,0002012
Aim for group salesof ¥50 billion

Real estate business¥20 billion
Information technology &telecommunications business¥10 billion

60,00040,000
Human resources
education business¥70 billion

20,0000
2011/12.

2012/12.

2013/12.

Human resources education

2014/12.

2015/12.

Information technology & telecommunications

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Real estate

2016/12.
Others23

Shareholder Return Policy
Based on stable dividend payments, consider paying dividends linked to performance
EPS (maximized earnings per share): FY12/10 EPS ¥39.6 (est.)
Dividend policy: Consider a dividend payout ratio of more than 15%*To be formally determined at the time of the 2nd quarter earnings announcement

Dividend per share
Record date

InterimYear-end

Annual total

Dividend
payout ratio

FY10/12 actual

-

¥4.5

¥4.5

125％

FY11/12 actual

-

¥4.5

¥4.5

35.4%

¥4.5

¥4.5

11%

（¥6）

（¥6）

（15.1％）

FY12/12 forecast-

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24For more information

Akihiko Ohmoto
Public Relations and Investor Relations Department
Corporate Planning Division
World Intec Co., Ltd.

TEL

03-3516-1122

E-MAILirinfo＠witc.co.jp

URL

http://www.witc.co.jp/

No information in this presentation is provided for the purpose of soliciting purchases or sales of World
Intec stock. Furthermore, opinions, forecasts and other information not based on historical facts represent
the judgments of World Intec at the time this presentation was prepared. World Intec does not guarantee
the accuracy of this information and may revise this information at any time without prior notice. World
Intec and other providers of this information assume no responsibility whatsoever for any losses incurredin association with the information in this presentation.

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