Consolidated Financial Results for 2023
[Japanese GAAP]
February 9, 2024

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange
2429
URL: http://www.world-hd.co.jp
Eikichi Iida, Chairman and President
Shigeru Nakano, Director, Business Management Division Manager
Tel: +81-92-474-0555
Scheduled date of Annual General Meeting of Shareholders:March 22, 2024
Scheduled date of payment of dividend:
March 25, 2024
Scheduled date of filing of Annual Securities Report:
March 25, 2024
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for 2023 (January 1 to December 31, 2023)(1) Consolidated results of operations
Net sales(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Operating profit%

Million yen

213,742
16.4
2023
2022
183,640
18.7
Note: Comprehensive income (millions of yen)

Million yen

10,365
8,929%

Million yen%

16.1
10,25119.3
8,933
2023: 6,529 (up 22.1%)

Net income per share

Diluted net income
per share

Yen

Yen

%

Ordinary profit on Operating profit tototal assets
net sales

Return on equity

2023
353.61352.152022
305.50303.82
Reference: Equity in earnings of affiliates (millions of yen)
2023: -

Million yen

14.8
6,204
16.2
15.4
5,341
15.5
2022: 5,346 (up 10.5%)

%

%

%

16.4
16.0

7.3
8.1
2022: -

4.8
4.9(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Net assets per share

Million yen

159,204
As of Dec. 31, 2023
As of Dec. 31, 2022
123,591
Reference: Shareholders’ equity (millions of yen)%

42,92637,195
As of Dec. 31, 2023: 40,259

Yen

25.3
2,290.86
28.6
2,019.89
As of Dec. 31, 2022: 35,408(3) Consolidated cash flows
Cash flows fromoperating activities
2023
2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen(3,355)(4,765)(11,484)(5,990)20,57915,06440,84835,078

2. Dividends
Dividends per share
1Q-endTotal

Payout ratio(consolidated)

Dividend on
equity(consolidated)

2Q-end3Q-end

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00
0.00
0.00

-

91.50
106.0080.90

91.50
106.00
80.90

1,603
1,862

30.0
30.0
30.0

4.8
4.9

2022
2023
2024 (forecast)Year-end

Total
dividends

3. Consolidated Forecast for 2024 (January 1 to December 31, 2024)
Net salesFirst half
Full year

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

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

Yen

109,547
252,085

21.1
17.9

1,189
9,003

(67.7)(13.1)

1,010
8,622

(72.3)(15.9)

254
4,738(87.4)(23.6)

14.48
270.05

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): Yes
Newly added: 1 (Yamato Staff Supply Co., Ltd.)

Excluded: -(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: Please refer to the section “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial
Statements” on page 15 for further information.

(3) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Dec. 31, 2023:

17,687,800 shares

As of Dec. 31, 2022:

17,643,500 shares

As of Dec. 31, 2022:

113,573 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2023:

113,661 shares

3) Average number of shares during the period
2023:

17,547,265 shares

2022:

17,484,077 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for 2023 (January 1 to December 31, 2023)(1) Non-consolidated results of operations
Net sales
2023
2022

Million yen%

Million yen%

Million yen%

Million yen

%

3,308
3,221

2.7
30.9

794
676

17.3
81.9

3,205
2,785

15.1
61.5

2,839
2,220

27.8
41.8

Net income per share
2023
2022

(Percentages represent year-on-year changes)
Ordinary profit
ProfitOperating profit

Diluted net income per
share

Yen

Yen

161.80127.03161.13126.33(2) Non-consolidated financial position
Total assets

Net assets

Million yen

As of Dec. 31, 2023
84,416
As of Dec. 31, 2022
62,685
Reference: Shareholders’ equity (millions of yen)

Equity ratio

Million yen

20,74919,431
As of Dec. 31, 2023: 20,691

Net assets per share
%

Yen

24.5
1,177.37
30.9
1,104.12
As of Dec. 31, 2022: 19,355* The current financial report is not subject to audit by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements, and other special items
Cautionary statement with respect to forecasts
Forecasts of future performance in this document are based on assumption judged to be valid and information currently
available to the Company’s management, but are not promises by the Company regarding future performance. Actual results
may differ materially from the forecasts for a number of reasons. Please refer to “1. Overview of Results of Operations, (5)Outlook” on page 6 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for financial results
The Company plans to hold a financial results meeting for institutional investors and analysts on Wednesday, February 14, 2024.
Supplementary materials to be distributed at this event will be disclosed on the same day, using the Timely Disclosure networ k(TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

4(3) Cash Flows

5(4) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years

5(5) Outlook

6

2. Basic Approach for the Selection of Accounting Standards

6

3. Consolidated Financial Statements and Notes

7(1) Consolidated Balance Sheet

7(2) Consolidated Statements of Income and Comprehensive Income

9

Consolidated Statement of Income

9

Consolidated Statement of Comprehensive Income

10(3) Consolidated Statement of Changes in Equity

11(4) Consolidated Statement of Cash Flows

13(5) Notes to Consolidated Financial Statements

15

Going Concern Assumption

15

Change in Accounting Policies

15

Segment and Other Information

15

Per-share Information

18

Subsequent Events

18

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

1. Overview of Results of Operations(1) Results of Operations
During the fiscal year under review, the Japanese economy followed a gradual recovery trend, with economic andsocial activity moving more rapidly towards normalization as the turmoil caused by the COVID crisis subsided.
However, the recovery in demand has largely run its course, and the outlook remains uncertain due to such
downside factors as the slowdown in overseas economies, ongoing depreciation of the yen, turmoil caused byheightened war and geopolitical risks, and sluggish semiconductor market.
Under these circumstances, while each segment shows different results, the Group was able to achieve stable
growth by using its portfolio of multiple businesses, which form the distinctive strengths of our group , to respond
appropriately to changes. As a result, both sales and profits rose to outperform the initial plan.
Net sales increased 16.4% year on year to 213,742 million yen (up 6.2% vs. plan). Operating profit increased
16.1% to 10,365 million yen (up 4.5% vs. plan), ordinary profit increased 14.8% to 10,251 million yen (up 8.4%
vs. plan), and profit attributable to owners of parent increased 16.2% to 6,204 million yen (up 2.6% vs. plan).
All activities of the Group continue to be guided by the group’s pu rpose of “contributing to happiness and asustainable society through the creation of a variety of ways we live worldwide.” By promoting investment in
human capital and increasing its value, which is the group’s most important resource, we are determined t o makeeven greater contributions to society while growing rapidly.
Business segment performance was as follows.
Products Human Resources BusinessIn the Products Human Resources Business, despite the impact of a decline in orders due to the sluggish
semiconductor market and other factors, the Group’s performance remained solid as it leveraged its strength
across multiple industries to respond flexibly to changes in various industries, including the automotive industry.
Moreover, in addition to investing in the recruitment and training of a record number of over 1,200 new graduates,
there were also unexpected costs associated with shift of personnel to other industries, resulting in higher sales
but lower profit.
In May, we welcomed Nippon Gijutsu Center Co., Ltd., which employs large numbers of highly skilledmechanical design engineers, into the group. With this move, we aim to strengthen our technology department
and enhance our expertise in our core contract business.
In planning for the expected growth of the semiconductor industry in the Kyushu region and elsewhere, World
Holdings is preparing for more growth in the next fiscal year and beyond by investing further in human resource
development, including preparing for the launch of a technical center in Ozu-machi, Kumamoto Prefecture, andestablishing a system capable of training 1,000 semiconductor personnel. We have also invested in digitaltransformation (DX) to reduce SG&A expenses and improve back-office productivity.
Sales were 101,246 million yen, up 14.3% year on year (up 6.9% vs. plan) and segment profit decreased 9.3% to
3,679 million yen (down 13.8% vs. plan).
Services Human Resources Business
The Service Human Resources Business declined at the start of the fiscal year following the completion of special
demand projects in the first half of fiscal 2022 and a fall in volume in reaction to the demand surge in the
e-commerce market from the stay-home trend during the COVID crisis. However, both sales and earnings rose toexceed the fiscal year plan, mainly due to the recovery of the logistics division in the second half of the fiscal
year and the growth of the customer service sales division, which took advantage of the rise in the number ofvisiting foreign tourists.
Additionally, in July we entered into a strategic business alliance with Yamato Holdings Co., Ltd., and in
September we welcomed Yamato Staff Supply Co., Ltd., a subsidiary of the same company, into the group. These
initiatives aimed to strengthen our logistics division, which is the mainstay of this segment. Leveraging ouraccumulated expertise in labor management, we have sought to expand into new business areas such as dispatch
2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

order management agency services and have proceeded to establish systems and measur es to contribute toindustry transformation, including improving productivity in the logistics sector.
Sales were 57,157 million yen, up 29.1% year on year (up 15.8% vs. plan) and segment profit increased 6.0% to
1,193 million yen (up 4.2% vs. plan).
Real Estate BusinessIn the Real Estate Business, we have been cautiously developing our business amid continuing high real estate
prices, but by capturing the optimal timing for sales, including advance sales, and progressing with the sale anddelivery of land for business use, we achieved particularly strong results on the profit side, leading to increased
sales and earnings. Profitability was boosted by the sale of highly lucrative properties, together with thesignificant upside of proceeding without incurring the sales promotion and other costs that we had initiallyanticipated.
Condominium projects include Residential Ikebukuro Honcho in Toshima -ku, Tokyo; Atlas Tower Shirokane
Residential in Shibuya-ku, Tokyo; Atlas Aoyama Residential in Minato-ku, Tokyo; Residential Hara Branchera in
Fukuoka City, Fukuoka Prefecture; and Residential Aoba Hirosegawa in Sendai City, Miyagi Prefecture. The
delivery of these properties has progressed smoothly.
With regard to procurement, while maintaining a cautious approach to business expansion, we have leveraged ourexpertise in commercial land development, which is one of our strengths, to minimize risk while steadily securing
properties that will contribute into the next fiscal year and beyond.
Sales were 42,906 million yen, up 12.8% year on year (down 3.6% vs. plan), and segment profit was 4,590
million yen, up 44.3% year on year (up 23.3% vs. plan).
Information and Telecommunications BusinessIn the Information and Telecommunications Business, with the mobile phone sales agency industry undergoing aperiod of major change, both sales and profits fell short of the plan due to a decline in unit sales in the mainstay
mobile store operations, a fall in the per-user unit price due to lower usage fees, and lower commission income
from various telecommunications carriers. The result was lower sales and earnings.
Currently, while taking a scrap-and-build approach to the mobile stores to improve efficiency, we are l everaging
the segment’s existing strengths in the corporate solutions sector and integrating its expertise in corporate
problem-solving with its mobile store network for individuals. In so doing, the Group aims to enhance its
presence and grow once more as a regional problem-solving base for both individuals and corporate customers.
Sales were 7,710 million yen, down 8.2% year on year (down 4.5% vs. plan), and there was segment profit of 4
million yen, down 96.6% year on year (down 98.0% vs. plan).
Agricultural Park BusinessIn the Agricultural Park Business, content enhancement led to an increase in average customer spending, resulting
in a rise in sales. However, the number of visitors to the park slowed due to poor weather in May, which is thebusiest period of the year, and a summer heat wave in addition to factors such as soaring electricity rates andrising procurement costs that pushed down profits. Accordingly, profits fell short of the plan. The result was
higher sales and lower earnings.
Meanwhile, starting in April, we began the new designated management of Osaka Garden of Floral Culture in
Kawachinagano City, Osaka, and we have also been actively preparing for new designated management projects
that will extend into the next fiscal year and beyond.
In addition, environmentally friendly initiatives were promoted at all agricultural parks following the Comorebi
Ibaraido Forest in Ibaraki Prefecture, by exploiting the strengths of its extensive outdoor facilities, including theexamination of introducing new solar power generation and battery storage facilities to reduce greenhouse gas
emissions and electricity costs.
Sales were 4,721 million yen, up 9.4% year on year (up 1.2% vs. plan), and segment profit was 101 million yen,down 35.9% year on year (down 51.4% vs. plan).

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

Overview of Business Results by Segment

Products
Human
Resources
Business
Services
Human
Resources
Business

Human
ResourcesandEducation
Business

Subtotal(Reference)Year-on-year change

2023
Plan

2023
ResultAmountNet sales

88,59894,732

101,246

6,513

6.9

12,64714.3

Segment profit

4,054

4,265

3,679

(586)

(13.8)

(375)

(9.3)

(Profit margin)(4.6%)(4.5%)(3.6%)Net sales

44,282

49,371

57,157

7,785

15.8

12,87529.1

Segment profit

1,125

1,144

1,193

48

4.2

68

6.0

(Profit margin)(2.5%)(2.3%)(2.1%)Net sales

132,880

144,104

158,403

14,2999.925,522

19.2

(537)

(10.0)

(307)

(5.9)

%

Amount%Segment profit

5,179

5,409

4,872

(Profit margin)(3.9%)(3.8%)(3.1%)Net sales

38,04444,51142,906(1,604)

(3.6)

4,861

12.8

Segment profit

3,181

3,728

4,590

861

23.3

1,409

44.3

Real EstateBusiness

Real EstateBusiness(Profit margin)(8.4%)(8.4%)(10.7%)

Information
andTelecommunications
Business

Information
andTelecommunications
Business

Net sales

Agricultural Agricultural
Park
Park
Business
Business

Total

Vs. Plan

2022
Result(Millions of yen)

8,399

8,074

7,710

(363)

(4.5)

(689)

(8.2)

Segment profit

125

214

4

(210)

(98.0)(121)(96.6)(Profit margin)(1.5%)(2.7%)(0.1%)Net sales

4,314

4,664

4,721

56

1.2

406

9.4

158

208

101

(106)

(51.4)(57)(35.9)

Segment profit(Profit margin)(3.7%)(4.5%)(2.2%)Net sales
Elimination or
corporate
Operatingprofit(Profit margin)

183,640

201,354

213,742

12,387

6.2

30,101

16.4

284

354

796

442

124.9

512

180.4

8,929

9,916

10,365

449

4.5

1,436

16.1

(4.9%)(4.9%)(4.8%)(2) Financial Position
AssetsTotal assets increased 35,613 million yen from the end of 2022 to 159,204 million yen at the end of 2023. Thiswas mainly due to increases of 5,757 million yen in cash and deposits, 6,338 million yen in notes and accounts
receivable-trade, 9,236 million yen in real estate for sale in process and 5,151 million yen in goodwill.
Liabilities
Total liabilities increased 29,883 million yen from the end of 2022 to 116,278 million yen. This was mainly due
to increases of 15,085 million yen in short-term borrowings, 2,468 million yen in accrued expenses and 7,743
million yen in long-term borrowings.
Net assets
Net assets increased 5,730 million yen from the end of 2022 to 42,926 million yen, mainly due to increases of
4,600 million yen in retained earnings and 897 million yen in non-controlling interests.

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

(3) Cash Flows
Cash and cash equivalents at the end of 2023 increased 5,770 million yen from the end of 2022 to 40,848 million
yen.
The cash flow components during the fiscal year under review and the main reasons for changes are as described
below.
Cash flows from operating activities
Net cash used in operating activities was 3,355 million yen. Main positive factors include profit before income
taxes of 10,120 million yen and a 954 million yen increase in accrued expenses. Major negative factors include a
1,677 million yen increase in trade receivables, a 12,658 million yen increase in real estate for sale and income
taxes paid of 4,862 million yen.
Cash flows from investing activities
Net cash used in investing activities was 11,484 million yen. Main positive factors include collection of loans
receivable of 275 million yen. Main negative factors include payments of 4,338 million yen for purchase ofproperty, plant and equipment and 6,593 million yen for purchase of shares of subsidiaries resulting in change inscope of consolidation.
Cash flows from financing activities
Net cash provided by financing activities was 20,579 million yen. Main positive factors include a net increase in
short-term borrowings of 9,328 million yen and proceeds of 22,208 million yen from long-term borrowings. Main
negative factors include repayments of long-term borrowings of 9,325 million yen and dividends paid of 1,603
million yen.
Reference: Cash flow indicators
2019

2020

2021

2022

2023

Equity ratio (%)

25.9

36.1

32.4

28.6

25.3

Market value-based equity ratio (%)

37.3

43.2

46.5

35.6

30.1

1,340.5

212.6

2,861.6(1,174.1)(2,347.7)

Interest-bearing debt to cash flow ratio (%)

14.7

Interest coverage ratio (times)
81.3
7.6
21.1
10.9
Equity ratio: Shareholders’ equity / Total assets
Market value-based equity ratio: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payments
Notes: 1. All indices are calculated based on consolidated figures.
2. Market capitalization is calculated by the total number of shares outstanding after the deduction of treasury shares.
3. Cash flows are calculated using the figures for operating cash flows on the consolidated statement of cash flows.
4. Interest-bearing debt includes all debt on the consolidated balance sheet that incur interest.

(4) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years
The basic policy for profit distributions is to distribute profits in a manner that reflects results of operations while
retaining sufficient earnings for future business operations and for making business operations stronger. For
dividends, the goal is to stably and consistently increase the dividend while using a consolidated payout ratio of
30% as the guideline for dividends. We plan to pay a year-end dividend of 106.00 yen per share for 2023, as
stated in “Notice of Dividends from Surplus” announced on February 9, 2024. We plan to pay a year-end dividendof 80.90 yen per share for 2024 in accordance with this policy.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

(5) Outlook
Regarding the outlook for fiscal 2024, we will proceed with formulating a cautious business plan amid a situationof continuing uncertainty with the slowdown of the global economy. In the Human Resources and Education
Business, we expect an increase in sales due to the recovery of the semiconductor industry from the second halfof the fiscal year and the contribution of Yamato Staff Supply Co., Ltd. However, in the Real Estate Business,given the continued high prices in the real estate market, we are planning for an overall fall in profits as we
exercise prudence in business expansion.
Our plan is weighted towards the second half of the fiscal year due to an expected recovery of the semiconductor
industry in the Human Resources and Education Business in this period, coupled with the concentration ofproperty handovers in the Real Estate Business during the same period.
By responding to all changes centered on both businesses and striving for stable growth, we will continue pushing
forward to achieve the Medium-Term Management Plan 2026.
Further details will be provided in the supplementary financial statement published on February 14, 2024.
Based on the above, we forecast net sales of 252,085 million yen (up 17.9% year on year), operating profit of
9,003 million yen (down 13.1% year on year), ordinary profit of 8,622 million yen (down 15.9% year on year),and profit attributable to owners of parent of 4,738 million yen (down 23.6% year on year) in 2024.
2. Basic Approach for the Selection of Accounting Standards
The Group uses Japanese accounting standards.
Decisions about the use of International Financial Reporting Standards will be made by taking into consideration
the use of accounting standards in Japan and other countries.

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)2023
(As of Dec. 31, 2023)

2022(As of Dec. 31, 2022)
AssetsCurrent assets
Cash and deposits

35,09140,848Notes and accounts receivable-trade

18,80925,148833

776

Real estate for sale

6,506

9,928

Work in process

113

241

Real estate for sale in process

43,09952,335

Other

3,811

4,672

(6)

(7)

108,257

133,944

10,071

11,323

Accumulated depreciation(7,621)(7,991)

Buildings and structures, net

2,450

3,331

1,783

4,796

Merchandise and finished goods

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Land
Other

5,640

6,049

(3,841)(4,462)

1,798

1,586

6,032

9,714

4,059

9,210

192

273

4,252

9,484

Investment securities

1,229

1,579

Deferred tax assets

2,047

2,213

Leasehold and guarantee deposits

1,191

1,532

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

-

15

932

1,150

(352)

(430)

5,049

6,061

15,33325,260123,591

159,204

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

(Millions of yen)2023
(As of Dec. 31, 2023)

2022(As of Dec. 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade

1,225

Accounts payable-real estate business

1,186

269

1,749

Short-term borrowings

30,79845,883

Accrued expenses

10,79813,267

Advances received

1,167

1,002

Income taxes payable

2,580

2,239

Accrued consumption taxes

3,307

4,083

225

426

Provision for bonuses
Other

5,115

6,918

Total current liabilities

55,48976,75725,14932,893

198

201

3,297

3,967

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Other

2,260

2,459

Total non-current liabilities

30,90539,521

86,395116,278

Share capital

1,314

1,350

Capital surplus

1,504

1,540

Retained earnings

32,862

37,463

Treasury shares

(119)

(119)

Total shareholders’ equity

35,561

40,23414

51

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

40

57

Remeasurements of defined benefit plans

(207)

(83)

Total accumulated other comprehensive income

(153)

25

Share acquisition rights

76

58

Non-controlling interests

1,710

2,608

Total net assets
Total liabilities and net assets

8

37,19542,926

123,591

159,204

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
2022(Jan. 1 – Dec. 31, 2022)(Millions of yen)2023
(Jan. 1 – Dec. 31, 2023)

Net sales

183,640

213,742

Cost of sales

151,953

176,122

Gross profit

31,687

37,61900Selling, general and administrative expenses
Provision of allowance for doubtful accounts
Remuneration for directors (and other officers)

547

658

Salaries and allowances

8,865

10,154

Provision for bonuses

199

136

Retirement benefits for directors (and other officers)
Retirement benefit expenses
Provision for retirement benefits for directors (and other officers)
Welfare expenses

-

10

156

297

21

27

1,776

2,086

Depreciation

458

473

Rent expenses

1,346

1,451

Amortization of goodwill

495

829

Other

8,889

11,125

Total selling, general and administrative expenses

22,75827,254

8,929

10,365Interest and dividend income

15

56

Subsidy income

140

23

Operating profit
Non-operating income

Income of support to investment in property and equipment

3

-

Other

228

213

Total non-operating income

387

293

225

307

Loss on retirement of non-current assets

53

25

Other

105

74

Total non-operating expenses

383

407

8,933

10,251

Insurance claim income

60Total extraordinary income

60Provision of allowance for doubtful accounts

126

80

Impairment losses

28

35

Loss on valuation of shares of subsidiaries and associates

322

13

5

1

483

131

Profit before income taxes

8,455

10,120

Income taxes-current

3,511

3,840

Income taxes-deferred

(559)

(70)

Total income taxes

2,951

3,770

Profit

5,504

6,350

162

145

5,341

6,204

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Loss on disaster
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

Consolidated Statement of Comprehensive Income(Millions of yen)2023
(Jan. 1 – Dec. 31, 2023)

2022(Jan. 1 – Dec. 31, 2022)
Profit

5,504

6,350

Valuation difference on available-for-sale securities

(1)

37

Foreign currency translation adjustment

19

17

Remeasurements of defined benefit plans, net of tax

(175)

124

Total other comprehensive income

(158)

179

5,346

6,529

5,176

6,376

169

153

Other comprehensive income

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

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

(3) Consolidated Statement of Changes in Equity
2022 (Jan. 1 – Dec. 31, 2022)

Balance at beginning of period(Millions of yen)
Shareholders’ equity
Retained
Total shareholders’
Treasury shares
Share capital Capital surplus
earnings
equity1,250
1,449
28,908(119)
31,489Changes during period
Issuance of new shares

63

Dividends of surplus
Profit attributable to owners ofparentSales of shares of consolidated
subsidiaries
Net changes in items other thanshareholders’ equity
Total changes during period

63

127(1,388)(1,388)

5,341

5,341

(8)

Balance at end of period

(8)

63

55

3,953

-

4,071

1,314

1,504

32,862(119)35,561

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasurements accumulated acquisitiondifference on
currencyof definedotherrightsavailable-for- translation
benefit plans comprehensive
sale securities adjustment
incomeBalance at beginning of
periodChanges during period
Issuance of newsharesDividends of surplus
Profit attributable toowners of parent
Sales of shares of
consolidated
subsidiaries
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

15

27

(31)

11

93

Noncontrollinginterests

Total net
assets

1,631

33,226127(1,388)
5,341
(8)

(1)

12

(175)

(164)

(16)

78

(102)

(1)

12

(175)

(164)

(16)

78

3,969

14

40

(207)

(153)

76

1,710

37,195

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

2023 (Jan. 1 – Dec. 31, 2023)(Millions of yen)

Balance at beginning of period

Shareholders’ equity
Retained
Total shareholders’
Treasury shares
Share capital Capital surplus
earnings
equity1,314
1,504
32,862(119)35,561

Changes during period
Issuance of new shares

35

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

35

71(1,603)(1,603)

6,204

6,204

14

(0)

35

35

4,600

(0)

4,672

1,350

1,540

37,463(119)40,234

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasurements accumulated acquisitiondifference on
currencyof definedotherrightsavailable-for- translation
benefit plans comprehensive
sale securities adjustment
incomeBalance at beginning of
periodChanges during period
Issuance of newsharesDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period

(0)

40

(207)

(153)

76

Noncontrollinginterests

Total net
assets

1,710

37,19571(1,603)
6,204
(0)
37

17

124

179

(18)

897

1,057

37

17

124

179

(18)

897

5,730

51

57

(83)

25

58

2,608

42,926

12

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

(4) Consolidated Statement of Cash Flows(Millions of yen)2023
(Jan. 1 – Dec. 31, 2023)

2022(Jan. 1 – Dec. 31, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation

8,455

10,120909

951

Impairment losses

28

35

Amortization of goodwill

495

829

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Decrease (increase) in retirement benefit asset

105

78

21

3

-

(15)

Increase (decrease) in retirement benefit liability

376

634

Interest and dividend income

(15)

(56)

Interest expenses

225

307

Loss on retirement of non-current assets

53

25

Loss on valuation of shares of subsidiaries and associates
Decrease (increase) in trade receivables
Decrease (increase) in inventories

322

13

(1,615)(1,677)(82)

5(12,075)(12,658)

Increase (decrease) in trade payables

(692)

1,411

Increase (decrease) in accrued expenses

1,596

954

Increase (decrease) in advances received

(373)

(174)

713

(11)

(153)

987

Decrease (increase) in real estate for sale

Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Other, net

(686)

(280)

Subtotal(2,388)

1,485

11

33

Interest and dividends received
Interest paid
Income taxes paid
Income taxes refund

(221)

(313)

(2,638)(4,862)472

301(4,765)(3,355)(1)-

Proceeds from withdrawal of time deposits

2

13

Purchase of property, plant and equipment(1,670)(4,338)

(34)

(112)

-

14

(4,165)(6,593)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits

Purchase of intangible assets
Proceeds from purchase of shares of subsidiaries resulting
in change in scope of consolidation
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments for acquisition of businesses

-

(42)

Purchase of investments in non-consolidated subsidiary
Net decrease (increase) in lease and guarantee deposits

(50)

(284)

(51)

(13)

Loan advances

(122)

(430)

Proceeds from collection of loans receivable

13

275

Other, net

90

26(5,990)(11,484)

Net cash provided by (used in) investing activities

13

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

(Millions of yen)2023
(Jan. 1 – Dec. 31, 2023)

2022(Jan. 1 – Dec. 31, 2022)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

1,254

9,328

Proceeds from long-term borrowings

24,583

22,208

Repayments of long-term borrowings(9,316)(9,325)

Repayments of lease obligations

(6)

(12)

Proceeds from issuance of shares

95

53

Purchase of treasury shares-(0)

Dividends paid

(1,388)(1,603)

Dividends paid to non-controlling interests

(52)

(68)

Repayments to non-controlling shareholders

(104)

-

Net cash provided by (used in) financing activities

15,064

20,57920

31

Net increase (decrease) in cash and cash equivalents

4,329

5,770

Cash and cash equivalents at beginning of period

30,74835,078Cash and cash equivalents at end of period

35,07840,848

Effect of exchange rate change on cash and cash equivalents

14

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Changes in Accounting Policies
Application of Implementation Guidance on Accounting Standard for Fair Value Measurement
World Holdings has applied the Implementation Guidance on Accounting Standard for Fair Value Measurement(Accounting Standards Board of Japan (“ASBJ”) Guidance No. 31, June 17, 2021) from the beginning of 2023,
and has applied the new accounting policies set forth by the Implementation Guidance on Accounting Standard
for Fair Value Measurement prospectively in accordance with the transitional treatment in the paragraph 27-2 ofthe Implementation Guidance on Accounting Standard for Fair Value Measurement.
There is no effect of the application of this guidance on the consolidated financial statements.
Segment and Other Information
Segment Information
1. Overview of reportable segments
Segments used for financial reporting are the constituent units for which separate financial information isavailable and for which the Board of Directors performs periodic studies for the purposes of determining theallocation of resources and evaluating performance. Based on the characteristics of products and services, World
Holdings has established the following reportable segments: Products Human Resources Business, Services
Human Resources Business, Real Estate Business, Information and Telecommunications Business, andAgricultural Park Business.
Overview of each business segment is as follows.
(1) Products Human Resources Business: Subcontracting and outsourcing, temporary staffing services,manufacturing, R&D, technology development, software and system designs and development, constructionengineering, repair of digital equipment, clinical research outsourcing(2) Services Human Resources Business: Subcontracting and outsourcing, temporary staffing services, logistics,
sales activities involving direct customer interaction, tourism, call centers(3) Real Estate Business: Sale of condominiums, condominium and building manag ement, sale of residentialbuilding sites, renovations, real estate brokerage services, rental property management,
manufacture/sale/rental of prefabricated houses(4) Information and Telecommunications Business: Operations of mobile phone stores, provision of solutions
for corporate clients, operation of call centers(5) Agricultural Park Business: Management and operation of agricultural parks
2. Calculation methods for net sales, profit or loss, assets, and other items for each reportable segmen t
The accounting methods for reportable segments are the same as those used for preparing the consolidated
financial statements.
Profits for reportable business segments are operating profit figures.
Inter-segment sales and transfers are based on market prices.

15

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

3. Information related to net sales, profit or loss, assets and other items for each reportable segment
2022 (Jan. 1 – Dec. 31, 2022)

Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers
Total
Segment profit
Segment assets(Millions of yen)
Reportable segment
Information
Real EstateandBusiness
Telecommunications
Business

Adjustments(Note 1)

Amounts shownon consolidated
financialstatements(Note 2)

183,640-

183,640

19

903

(903)

-

8,464
125
3,121

4,334
158
3,019

184,543
8,644
114,130

(903)
284
9,460

183,640
8,929
123,591

509

35

149

795

114

909

286

-

30

-

495

-

495

-

-

-

28

-

28

-

28

100

22

1,277

14

142

1,557

260

1,817

Products
Human
Resources
Business

Services
Human
Resources
Business

88,59844,282

38,044

8,399

4,314

565

178

74

64

89,164
4,054
28,961

44,4601,125
13,294

38,1193,181
65,734

64

36

178

Agricultural
Park
Business

Subtotal

Other items
Depreciation
Amortizationof goodwill
Impairment
loss
Increase inproperty, plantand equipment
and intangible
assets

Notes:

1. Contents of adjustments are as follows.
(1) The 284 million yen adjustment to segment profit includes elimination for inter-segment transactions of -120
million yen, and 404 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable
to any of the reportable segments.
(2) The 9,460 million yen adjustment to segment assets is corporate assets that are not allocated to any of thereportable segments. Corporate assets mainly consist of surplus funds (cash and deposits).
(3) The 114 million yen adjustment to depreciation is related to corporate assets that are not allocated to any of
the reportable segments.
(4) The 260 million yen adjustment to increase in property, plant and equipment and intangible assets is capital
expenditures related to corporate assets that are not allocated to any of the reportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statement of income.

16

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

2023 (Jan. 1 – Dec. 31, 2023)

Net sales
Sales toexternalcustomers
Inter-segment
sales andtransfers
Total
Segment profit
Segment assets(Millions of yen)
Reportable segment
Information
Real EstateandBusiness
Telecommunications
Business

Adjustments(Note 1)

Amounts shownon consolidated
financialstatements(Note 2)

213,742-

213,742

22

941

(941)

-

7,792
4
3,116

4,743
101
3,111

214,684
9,568
150,199

(941)
796
9,005

213,742
10,365
159,204

531

29

158

849

102

951

387

-

17

-

829

-

829

-

-

-

27

-

27

8

35

129

32

4,125

25

287

4,600

159

4,759

Products
Human
Resources
Business

Services
Human
Resources
Business

101,246

57,15742,906

7,710

4,721

641

180

15

81

101,887
3,679
37,99357,338
1,193
20,57942,921
4,590
85,398

80

49

424

Agricultural
Park
Business

Subtotal

Other items
Depreciation
Amortizationof goodwill
Impairment
loss
Increase inproperty, plantand equipment
and intangible
assets

Notes:

1. Contents of adjustments are as follows.
(1) The 796 million yen adjustment to segment profit includes elimination for inter-segment transactions of 5
million yen, and 790 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable
to any of the reportable segments.
(2) The 9,005 million yen adjustment to segment assets is corporate assets that are not allocated to any of thereportable segments. Corporate assets mainly consist of surplus funds (cash and deposits).
(3) The 102 million yen adjustment to depreciation is related to corporate assets that are not allocated to any of
the reportable segments.
(4) The 159 million yen adjustment to increase in property, plant and equipment and intangible assets is capital
expenditures related to corporate assets that are not allocated to any of the reportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statement of in come.

17

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

Per-share Information
(Yen)
2023
(Jan. 1 – Dec. 31, 2023)

2022(Jan. 1 – Dec. 31, 2022)
Net assets per share

2,019.89

2,290.86

Net income per share

305.50353.61

Diluted net income per share

303.82352.15

Note: Basis for the calculation of net income per share and diluted net income per share is as follows:
2022(Jan. 1 – Dec. 31, 2022)

2023(Jan. 1 – Dec. 31, 2023)

Net income per share
Profit attributable to owners of parent (Millions of yen)

5,341

6,204

-

-

5,341

6,204

17,484,077

17,547,265--

Increase in number of common stock (Shares)

96,93573,054[of which share acquisition rights (Shares)][96,935][73,054]--

Amount not attributable to common shareholders(Millions of yen)
Profit attributable to owners of parent applicable tocommon stock (Millions of yen)
Average number of common stock outstanding during theperiod (Shares)
Diluted net income per share
Adjustment to profit attributable to owners of parent(Millions of yen)

Summary of potentially dilutive shares not included in thecalculation of diluted net income per share due to theiranti-dilutive effect

Subsequent Events
Issuance of stock options
1. Stock acquisition rights as stock options to be distributed to employees, etc.
At a meeting held on January 17, 2024, the Board of Directors of World Holdings has decided the terms of stockacquisition rights, issued as tax-qualified stock options to be distributed to directors (excluding outside directors)of World Holdings and its subsidiaries and employees of World Holdings and its subsidiaries, and approved aresolution to solicit persons to subscribe these rights, in accordance with the provisions of Articles 236, 238 and239 of the Companies Act and the resolution of the 30th Ordinary General Meeting of Shareholders held on
March 24, 2023. The stock options are to be granted for the purposes of motivating directors (excluding outside
directors) of World Holdings and its subsidiaries and employees of World Holdings and its subsidiaries toincrease consolidated sales and earnings of the Group as a whole, improving the ability to recruit skilled people,
and contributing to the growth of corporate value. On February 5, 2024, the value of assets to be contributed upon
the exercise of the stock acquisition rights was determined as follows.
(1) Qualification and number of allottees of stock options and number of stock options to be allotted
Allotment of 165 units to six directors of the Company
Allotment of 17 units to three employees of the Company
Allotment of 631 units to 61 directors of the Company’s subsidiaries
Allotment of 2,187 units to 753 employees of the Company’s subsidiaries(2) Total number of stock options
3,000 (100 shares are received upon the exercise of each stock option.)(3) Class and number of shares to be issued upon exercise of the stock options
Common stock of the Company: 300,000 shares

18

WORLD HOLDINGS CO., LTD. (2429) Financial Results for 2023

(4) Payment in exchange for the stock options
No payment is required to receive the stock options.
(5) Value of assets to be contributed upon the exercise of the stock options
305,000 yen per stock option (3,050 yen per share)(6) Exercise period
From March 1, 2026 to March 24, 2033
(7) Allotment date of stock options
February 5, 2024
2. Stock acquisition rights as stock options to be distributed to directors
At a meeting held on January 17, 2024, the Board of Directors of World Holdings has decided the terms of stockacquisition rights, issued as non-tax-qualified stock options to be distributed to directors of World Holdings, andapproved a resolution to solicit persons to subscribe these rights, in accordance with the provisions of Articles
236, 238 and 239 of the Companies Act and the resolution of the 30th Ordinary General Meeting of Shareholders
held on March 24, 2023. The stock options are to be granted for the purposes of motivating directors of World
Holdings to increase consolidated sales and earnings and contributing to the growth of corporate value. On
January 23, 2024, the value of assets to be contributed upon the exercise of t he stock acquisition rights wasdetermined as follows.
(1) Qualification and number of allottees of stock options and number of stock options to be allotted
Allotment of 3,000 units to one director of the Company(2) Total number of stock options
3,000 (100 shares are received upon the exercise of each stock option.)(3) Class and number of shares to be issued upon exercise of the stock options
Common stock of the Company: 300,000 shares(4) Payment in exchange for the stock options
No payment is required to receive the stock options.
(5) Value of assets to be contributed upon the exercise of the stock options
292,400 yen per stock option (2,924 yen per share)(6) Exercise period
From January 23, 2024 to January 22, 2034
(7) Allotment date of stock options
January 23, 2024

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, f or the convenience of readers
who prefer an English translation.

19