Business Results for Fiscal Year 2008
ended December 31, 2008
February 20, 2009WORLD INTEC CO.,LTD.

ＪＡＳＤＡＱ＇２４２９（Contents

1. Business Results Summary of Fiscal Year 2008
ended December 31, 2008
2. Business Forecast for Fiscal Year 2008
ending December 31, 2008
3. Changes in External Business Environment
4. Outlook and Strategy

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

2

Business Results Summary of Fiscal Year 2008
ended December 31, 2008

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved3Consolidated Business Results Summary of FY12/08 (Versus Year-on-Year（Net Sales

Increased for seven consecutive fiscal years but posteda sharp decline this quarter (4Q/FY08)

OperatingIncome

Adversely impacted by widespread reduction in workforce

Ordinary
IncomeDeclined sharply resulting from decreases in operating
income and facility support subsidy

Net Income

Hit by one-time write-off of ¥216 million

Consolidated(Millions of yen)

Net sales
Opearating income
Operating income margin

Ordinary income
Ordinary income margin

Net income
Net income margin

FY12/07

FY12/08

Year-on-Year Change

ActualActualValue

46,497
1,345

48,767
1,089

2.9%

2.2%

1,772

1,278

3.8%

2.6%741

192

1.6%

0.4%

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

Ratio

2,269(255)-19.0%(493)-27.9%(549)-74.1%

4.9%

4

Consolidated Net Sales and Operating Income Margin (FY12/05 2HF- FY12/08)▌ The sharp decline in net sales was due to the global recession.

Operating income suffered from incidental expenses triggered by workforce reduction.
＇Millions of yen（

25.0%
Net Sales
Operating Income Margin

14,00012,83512,00011,413

11,726

13,107
12,445
12,23020.0%
10,984

10,5239,950

10,00015.0%

8,526 8,6737,700

8,000

10.0%

6,635
6,000

5,969

8.6%

3.8%
4,000

3.6%

2.9%

2.2%

5.0%
2.9%

2.1%

3.0%

2.2%
2,000

5.0%

5.4%

-2.6%

1.0%

0.0%

-0.1%

0-5.0%
Q3

Q4

Q1

Q2

Q3

FY12/06

Q4

Q1

Q2

Q3

Q4

FY12/07

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

Q1

Q2

Q3

Q4

FY12/085

Business Results Summary for FY12/08 by Business Segment(Versus Year-on-Year)By business segment

Manufacturing Temporary
Placement/Contracting(Millions of yen)

Net Sales
Operating income
Operating income marginTechnology OrientedPlacement

Net Sales
Operating income
Operating income margin

R&D Placement

Net Sales
Operating income
Operating income margin

Information Technology &Telecommunications
Services

Net Sales
Operating income

Marketing Sales Services

Net Sales
Operating income

Operating income margin

Operating income margin

Total

Net Sales
Elimination

Operating income
Operating income margin

FY12/07

FY12/08

Year-on-Year Change

ActualActualValue

29,974
1,959

29,380
1,920

6.5%

6.5%

7,069
402

8,021
468

5.7%

5.8%

1,576
167

1,905
139

10.6%

7.3%

6,852(90)

8,202
178

-1.3%

2.2%

1,024(150)

1,257(132)-14.7%-10.5%

46,497

Ratio

(594)
(39)

-2.0%
-2.0%

965
66

13.5%
16.6%

328
(28)

20.9%
-16.8%

1,349
269

19.7%
-233
18

22.8%
-48,767

2,284

(942)

(1,485)

(542)

1,345

1,089

(255)

4.9%
-19.0%

2.9%

2.2%

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6Summary of Consolidated Balance Sheets
FY12/07

FY12/08

Year-on-Year
ChangeActualActualValue

12,022

11,676(345)

Cash and deposits
Trade notes and accounts receivable
Inventories
OthersTotal fixed assets
Total property and equipmentTotal intangible assets
Total investments and other assets

10,214
4,194
5,149
309
560
1,808
569
336
902

9,225
3,749
4,144
546
784
2,451
759
239
1,452(989)(445)(1,004)
236
224
643
189
(96)
549

Total liabilities

7,528

6,978(549)

Total current liabilities
Trade notes and accounts payable
Short-term bank loans
Accured expenses
Income taxes paybableAccrued consumption taxes
OthersTotal long-term liabilities
Long-term debt
Liability for retirement benefits
Accrued retirement benefits for
directors and corporate auditors
Others

6,904
503
609
3,502
726
668
894
623
495
110

6,086
425
651
3,135
220
525
1,126
892
654
216

(818)
(77)
41(366)
(506)
(142)
232
269
159
105

17

19

12

2

Total equity

4,494

4,698

203

696
859
2,520(70)
(1)
489

697
860
2,641
(70)
(27)
597

00
120
0
(26)
108

12,022

11,676(345)Consolidated(Millions of yen)

Total assets
Total current assets

Common stock
Capital surplus
Retained earnings
Treasury stock
Valuation, translation adjustments and other

Minority interests

Total liabilities and equity-Principal cause of major
upward/downward fluctuations
due to depressed net sales
resulting from shrinking
contracted workforce

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved7

Summary of Consolidated Statements of Cash Flows
Consolidated(Millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Increase/Decrease in trade accounts receivable
Increase/Decrease in inventories
Increase/Decrease in trade accounts payable
Increase/Decrease in accrued expenses
Increase/Decrease in accrued consumption taxesOthers
Interest and dividend income
Interests paid
Income taxes paid
Cash flows from investing activities
Payments into time deposits
Purchase of property and equipment
Purchases of investment securities
Net increase/Decrease in guarantee deposits
OthersCash flows from financing activities
Increase/Decrease in short-term bank loans
Proceeds from long-term bank loans
Repayments of long-term bank loans
Others
Effect of exchange rate changes on cash and cash equivalents

Increase/Decrease in cash and cash equivalents
Cash and cash equivalents, beginning of year
Decrease in cash and cash equivalents
Cash and cash equivalents, end of year

FY12/07

FY12/08

Year-on-Year
ChangeActualActual

Value

1,081

556

(524)

1,762
134
(987)
(197)
284
101
141
384
5(11)
(536)

973
168
992
(151)
(77)
(355)
(130)
334
10(20)(1,188)

(788)
33
1,980
46(361)
(456)
(272)
(50)
5(8)
(651)

(576)

(742)

(165)

(42)
(435)
－(56)
(42)

(42)
(121)
(594)
17(2)

0
314
(594)
74
40

142

(225)

(368)

(720)
1,300(294)
(142)
(4)
642
3,568
(57)
4,152

35
350
(539)
(70)
(23)
(435)
4,152
－
3,717

755
(950)
(244)
71(18)(1,078)584
57(435)

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Principal cause of major
upward/downward
fluctuations due todepressed net sales
resulting from shrinking
contracted workforce

Expenses fromacquisition of
PcAssist Corporationshares

8

Business Forecast for FY 2009
ending December 31, 2009

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

9Consolidated Business Forecast Outline for FY12/09▌ Seize industry shakeout as an opportunity to accelerate adoption ofoutsourced contracting at manufacturing sites

At the same time, work to enhance employee education/training and promote
job creation and employment stability through partnerships with thegovernment and companies—our core competence

Consolidated(Millions of yen)

FY12/08

FY12/09

ActualForecast

Year-on-Year Change
Value

Ratio

Net sales

48,76731,600(17,167)-35.2%

Opearating income

1,089

220(869)-79.8%

2.2%

0.7%

1,278

200

2.6%

0.6%

192

30

0.4%

0.1%

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

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved0.0%(1,078)-84.4%(162)-84.4%

10

Business Forecast Outline for FY12/09 by Business Segment
By business segment(Millions of yen)
Manufacturing Temporary
Placement/Contracting

Net Sales
Operating income

14,200
439

6.5%

3.1%

8,021
468

8,000
380

5.8%

4.8%

1,905
139

2,400
226

7.3%

9.4%

8,202
178

6,000
122

2.2%

2.0%

1,257(132)

1,000
53

-10.5%

5.3%

Net Sales

48,767

Elimination

Operating income

Net Sales
Operating income
Operating income margin

R&D Placement

Net Sales
Operating income
Operating income margin

Information Technology &Telecommunications
Services
Marketing SalesServicesTotal

FY12/09
Forecast

29,3801,920

Operating income margin

Technology OrientedPlacement

FY12/08
ActualNet Sales
Operating income
Operating income margin

Net Sales
Operating income
Operating income margin

Operating income margin

Year-on-Year Change
Value
Ratio
-51.7%(15,180)-77.1%(1,520)

(21)
(88)

-0.3%
-18.8%

495
87

26.0%

(2,202)(56)-26.8%-31.5%(257)
185-20.4%-31,600(17,167)-35.2%(1,485)(1,000)

485

1,089

220

(869)

-79.8%

2.2%

0.7%

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62.6%

11Year-On-Year Business Segment Shift (FY2008/09)
Segment ratios undergo shift from changes in manufacturing environment .
Information
Technology &TelecommuniMarketing

cations Service
19%

Sales Service
3%
Ｒ＆Ｄ

3%
4%

Manufacturing

2008年

16%

Placement
7%
Technology

Temporary

17%

FY200860%

Placement/Contracting
46%

2009年
FY2009Oriented
Placement
25%
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12Impact on Operating and Net Incomes▌ Although one-time, non-consolidated write-off affects consolidated results, negative impact

from workforce reduction a temporary phenomenon▌ Operating Income---Approx. ¥350 million in one-time, non-consolidated expense

Expenses (dormitory boarding fees, etc.) arising from workforce reduction【Projected cost of sales structure without one-time expense】(Non-consolidated)

2.4%

3.3%

11.5%

11.0%

86.0%

85.7%

ActualWithout special factor

Cost of Sales

Temporary shift in income structure
impacts consolidated results

SG&A▌ Net Income---One-time, non-consolidated expense of approx. ¥216 million

Incidental expenses associated with workforce reductions, including employeecompensation for unused annual paid vacation time and temporary leave due to productionscale back or shutdown
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13Changes in External Business Environment

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14

Contracted Workforce in Manufacturing Temporary Placement/
Contracting Business in 2008 (Non-Consolidated)

Jan.-Jun.

Strong performance carried over since 2007,
exceeding in-house projection

Jul.-Sep.

More manufacturers switch to direct employment
in response to 2009 Issue

Oct.-Dec.

Global recession spurs production cutbacks.
Seasonal, temporary and contract workers let go as workforce trimmed

10,0009,000
8,000
7,0006,000
5,000
4,000
3,000
2,000
1,0000Direct employment rises

Auto Industry
production cutbacks

Lehman Bros.
insolvency

Jan.

Feb. Mar. Apr. May Jun.
ActualJul. Aug. Sep. Oct. Nov. Dec.
EstimateCopyright © WORLD INTEC CO.,LTD. All Rights Reserved15Outsourced Contracting to Net Sales Ratio【UKEOI (Manufacturing OutsourcedContracting) Statements】

Outsourced contracting sites declines corresponds with that of
temporary worker dispatching sites.
However, process of converting 65% of contracts with existingclients to outsourced contracting contracts by this fiscal year’s
end is underway.
Outsourced Contracting

Temporary Placement

35.0%
77.8%

79.6%
Conversion
process inprogress

34.6％

22.2%

20.4%

Dec. 07

Dec. 08
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

65.0%

Dec. 0916

Conclusion
While we have hedged against business volatility risks by becoming more diverse in termsof regionalization and industrial sector, and by expediting the conversion to outsourced
contracting, these measures were not enough to cope with the sharp decline in businessvolume that struck the manufacturing industry as a whole.

Regionalization
on a nationwide basis

Manufacturing Industry
Conversion tooutsourced contracting
business
UKEOI (Manufacturing
Outsourced Contracting)Statements

Diversity
in industrial sectors
Auto・Precision・
Electronic Device

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved17Outlook and Strategy

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18

Projected Changes in Workforce and GDP
GDP forecast sees economic recovery likely in 2010,
with re-engineering of production methodologies inevitable.
1995

2008

Ratio of permanent workers

79.1％ ＇37.79 million people（Ratio of permanent workers
66.0％ ＇33.71 million people（

Ratio of non-permanent workers20.9％ ＇10.01 million people（Ratio of non-permanent workers
34.0％ ＇17.37 million people（Permanent Full-time Workers

Part-time,Temporary and Contract Workers

Reshuffling of 7 millionworkers and capital
investment to ensure
productivity and costperformance

Real GDP Growth

6,000

Estimate
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
-1.5
-2.0

5,000
4,000
3,000

2,000
1,0000Capital Investment Trend
Source: Derived from Ministry of Health, Labor and Welfare report, Transition and Trends of the Labor Economy,and annual real growth rates announced by Cabinet Office

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved19

Possible Future Risks and Opportunities
Labor market risks since the end of 2008 and possible future risks
Order Inflows
・ Temporary increase in termination of temporary worker dispatching andoutsourced contracting contracts due to reduction in permanent-hire workforce
Management
・ Temporary increase in cash outflow arising from smaller contracted workforce(employee compensation for unused annual paid vacation time; temporary
leave due to production cutbacks; dormitory expenses and other factors)
・ Less income due to net sales decline = higher SG&A ratio

Operating Environment
・ Possibility of regulatory changes impacting outsourcing industry

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved20

Possible Future Risks and Opportunities
Potential Opportunities
Order Inflows• Demand for outsourcing agencies with a stable pool of contracted workers
is expected to rise significantly after the current period of workforce
reductions as manufacturers look to ensure viable production levels.
• While the total volume of demand will fall, demand and business volume forthose agencies who can handle the increased order inflow will grow.
• Opportunities to secure contracts with manufacturers that have in the pastrefrained from using our services will improve.
• Rather than relying on direct employment, which bears considerable risks
for employers, or long-term temporary hires, clients will shift orders toagencies that provide outsourcing and outsourced contracting services,
services that are expected to develop and expand even further in the future.

Recruitment• Agencies that offer flexible career environments to suit the lifestyle needs
and wants of contracted workers, thereby allowing them opportunities tochoose and draw up clearer future plans, will secure the most applicants.

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21Structural Reform on Non-Consolidated Basis: A Top Priority (Non-Consolidated)
Due to a sharp decline in net sales, our SG&A ratio has increased significantly.
This is also true for our competitors. We are thus now committed to enhancing
our capacity not only to meet the numerous challenges ahead, but to invest inbusiness opportunities that will undoubtedly rise in the years to come.
The following initiatives will be adopted to ensure success:Streamline
organization

Pare expenses

Scrap andintegrate businessoffices

SG&A Reduction
Year 2008 ¥4.5billion
Year 2009 ¥2.8billion

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved22

Reasons for Continued Outsourced Contracting Growth The only way to secure viable workforce without being subject to the legal
restrictions imposed by the Worker Dispatch Law
 Our UKEOI (Manufacturing Outsourced Contracting) Statements assures
us competitive superiority with regards to the issue of regulatorycompliance.
Industry

Manufacturers

Employees• Outsourced contracting
provides stability interms of sales, profits
and operational
flexibility• Enables fully compliant
production systems toavoid restrictions on thedispatching period
imposed under theWorker Dispatching
Law• Curtails production
costs• Enables flexible
responses to productionchanges• Offer flexible career
environments to suit thelifestyle needs andwants of contracted
workers

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23

Reasons for Continued Outsourced Contracting GrowthSuperiority of Outsourced Contracting
Permanent workers
Seasonal workers

Contract Term Cost
AdjustmentsUnlimited
HighIn-house
3 years max. Average In-house

Recruitment
Maker
Maker

Administration
Maker
Maker

Risks
Costs become fixed
Limited to 3 years

Part-time workers

Unlimited

LowIn-house

Maker

Maker

Equal pay for equal work for parttime and permanent workers

3 years max.

Average

Temp staff agency(adjusting to # of workers)

Temp staff agency

Temp staff agency Retention difficult

Unlimited

Low

Outsourcing agency
Outsourcing agency(adjusting to production volume)

Direct employment

Temp staff at manufacturing sites
Outsourced contracting

Outsourcing agency Startup time longer

Outsourced contracting is the most stable format for client-manufacturers,
contracted workers and WORLD INTEC.

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved24

A Human Resources Service for Clients and Workers (Our Group Strategy)
Our aim is to pioneer new labormarkets by enhancing employee
training through our partnerships
with educational institutions (thegovernment as well as othercompanies, including our affiliates)and developing individuals capableof excelling in fields other than their
original field of expertise.

Manufacturing
Manufacturing Temporary
Placement/Contracting,
Ｒ＆Ｄ Placement,
Technology Oriented
Placement

Primary Industry
Service Industry

Human
Resource

Information
Communication

Development

Temporary
Staffing
HumanResource
ServiceA human resources services
for clients and workers

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

Contact Information
WORLD INTEC CO., LTD.
Hiroshi Kudo (Mr.)
Corporate Spokesperson
Corporate Management OfficeTEL+81-3-3516-1122

E-MAILirinfo＠witc.co.jp

URL

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

A cautionary note on forward-looking statements:
This material contains forward-looking statements on the Company and its futurebusiness performance. The forecasts are developed from a broad base of informationcollected and collated by the Company as of the day the business results are announced.
Actual results, however, may differ materially from those projected. Neither the Company
nor provider of the information contained herein may be held liable or responsible for any
loss or damages resulting from investment decisions based on the content of thispresentation.

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