FY2012 Financial Results

February 19, 2013
World Intec Co., Ltd.
JASDAQ (2429)

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

Content

I.

Summary of Financial Results for FY2012

II. Segment Highlights
III. FY2013 Business Forecasts
IV. Future Business Strategy

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved2Management Style and Group Philosophy
Conservative and steady management: Strong financial base (debt-free management
until the launch of Real estate business)

To be a group that will never collapse
Building of a group to stand any changes in external environment
Connect people with work

New work style
Bring people together through IT

New style of communication
Connect people with housing
New style of urban development

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved3World Intec Group: Three Core Businesses

World Intec Co., LtdGroup
R&D ・・・・・・
Technology ・・・・・・・
Factory ・・・・・・

e-support, inc.
・Call center business

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

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

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

Nichimo Real Estate Co, Ltd.

・au shop businessBest IT Business Co., Ltd.
・Corporate businessWORLD INTEC FUKUSHIMA CO., LTD
Administrative contract business

DOT International Co., Ltd.

・ Contract selling business・Real estate consulting business

CRO (Clinical Research Outsourcing) business

World Resiselling Co., Ltd.

Advan Co., Ltd.

・Selling agency
・Contract selling business

Mobile Service Co., Ltd.

Administrative ・・・・・
Overseas ・・・・・・・・・
Repair ・・・・・・・・ ・・・

Dispatch of researchers
Dispatch of engineers
Dispatch of manufacturers,
Contract work
Dispatch of sales personnel
Dispatch of construction
managing engineers
Personnel training contract
Parts procurement
Repair service

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

Suncity Selling Co.,, Ltd.
・Selling agency
・Contract selling business※Merged with Nichimo Real Estate on Jan. 1, 2013

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

Education business・PC school operations, educational materials,
software sales

GEOGRAPHIC INFORMATIONOF KYUSHU, INC.
・Map information sales ・Entrusted system development
・Disabled persons’ employment support, education

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

WORLD INTEC SHANGHAI CO., LTD.

(non-consolidated)

・Comprehensive human resources service
・Education consultingComposition Ratios by Segment
Human resources education business accounts for about 60% of net sales and operating income

Net sales

Operating income

Others
10.3%

Others
9.6%
Factory
22.3%

Factory
33.8%

Real estate
16.6%

Real estate
21.0%

FY12/12¥53,007 million
Information&
telecommun
ications
22.0%

FY12/12¥1,223 million※
Technology
16.2%

R&D
5.6%

Technology
11.7%

Information&
telecommun
ications
18.6%

R&D 12.3%※Composition ratio of operating income is calculated based on
100 representing ¥2,195 million which is intersegment
eliminations/corporate expenses before deduction
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

5

Ⅰ. Summary of Financial Results for FY2012

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

6

FY2012 Summary

１

In FY12/12, 39.9% increase in sales and 90.2% increase in ordinary
income YoY→ Real estate business posted condominium business sales for the firsttime which contributed to performance2

Dividend increase due to big increases in sales and profits; maintained a
dividend payout ratio of more than 20%→ Increased dividend per share by 4.0 yen to 8.5 yen

3New approach→ Converted DOT International in the Clinical Research Outsourcing(CRO) field into a subsidiary
Acquired the business of the former Suncity and improved theoperating base in Tohoku area

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

7

Overview of FY2012
Sales/profits up
Established WORLD INTEC FUKUSHIMA CO., LTD. due to the expansion of Administrative
contract business.
Transferred the Factory business of the Fukushima office.
Contracting business began in full-swing at logistics bases in April.
Busy smartphone-related electrical and electronics field
Converted DOT International of CRO in the R&D business into a subsidiary in November.

Sales/profits up
Kyushu’s No.1 mobile shop had a strong showing as new smartphones were sold one after anotherand data communication terminals including tablet terminal and wifi routers continued to spread.
Sales and profits increased while making prior investments in shop renovation.

Sales/profits up
Out of a total of 177 units of 4 condominiums for sale, 176 units were delivered almost as planned.
Established World iCity in 1Q and acquired the former Suncity’s business in Tohoku area.
Steady progress in land purchase from the next fiscal year.

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

8

FY2012 Consolidated Financial Summary

Million yen, %FY12/11
actualNet sales

FY12/12actual

37,892

YoY
Change53,007 15,115

Pct.
ChangeVs. forecast

FY12/12
forecast

ChangePct.
Change39.9

49,611

3,396

6.8

Operating income

588

1,223

635 108.1

1,361

138

10.1

Ordinary income

678

1,290

612

90.2

1,306

16

1.2

Net income

214

658

444 207.5

645

13

2.0

EPS (yen)

13.2

40.3

Dividend per share (yen)

4.5

8.5

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

9

Business Summary by Segment
Million yen, %FY12/11
actualFactorybusiness

Technol og ybus i nes s

R &D bus i nes s
Inf orm a ti on
technol og y &tel ecom m uni ca
ti ons bus i nes s
R ea l es ta tebus i nes s

Net sales
Segment income

596

17,893
489

Profit margin

3.8%

2.7%

Net sales

5,982

Segment income

327

6,197
356

Profit margin

5.5%

Net sales

2,502

Segment income

Total

YoY
ChangePct. Change

FY12/12
forecast

2,171

13.8

20,120

△107

1,026

－

△ 18.0Vs. budget
ChangePct. Change△2,227△537△ 11.1△ 52.3

－

－

－

5.1%

3.6

6,286

28

8.7

405

5.7%

－

－

6.4%

481

19.2

3,250

241

2,984
269

28

11.8

278

Profit margin

9.6%

9.0%

－

－

8.6%

Net sales

9,176

2,481

27.0

8,950

2,708

Segment income

213

11,658
408

195

91.6

270

138

51.1

Profit margin

2.3%

3.5%

－

－

3.0%

－

－

Net sales

1,514

7,279

480.6

7,769

1,025

13.2

Segment income

△75

8,794
462

537

－

165

297

180.0

5.3%

－

－

2.1%

－

－

2,484

83.0

3,235

2,244

69.4

53

34.0

204

7

3.4

Profit margin

Net sales
Others

15,722

FY12/12actual

△5.0%

2,994

215

－

△89
△49

△266
△9
－

－

△ 1.4
△ 12.1
△ 8.2
△ 3.2
－

30.3

Segment income

157

5,479
211

Profit margin

5.2%

3.9%

－

－

6.3%

－

－

Net sales

37,89253,007△972
1,223

15,11539.9

49,611

3,396

6.8

－
635

－
108.1

△988
1,361

－

－

2.7%

－
△138

－
△ 10.1Elimination or
corporate

Operating income

Operatingmargin

△873
588
1.6%

2.3%

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

－

－

10

Change in Net Sales by Segment(Million yen)

55,00050,000Real estate
7,279

45,000

Factory
Information technology & 2,171
telecommunications
2,481
Others2,485

Technology
215

Transfer of business toWORLD INTEC
FUKUSHIMA (1,420)

40,000Administrative contract business
Sales personnel temporary staffing
Construction managing engineer temporary
staffing, etc.

35,00030,00025,000

R&D
481

2011/1237,892

2012/1253,007

Posted condominium sales fromthis fiscal yearUp ¥15,114 million
20,000～15,0002011/12

Others

Factory

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

11Change in Operating Income by Segment(Million yen)
1,600
Others
53

1,400

R&D
28

Technology
28

Information technology& telecommunications
195

1,200

Factory△107

Elimination/
corporate
△99

1,000
Real estate
537

800

Up-front investment in new project(transfer cost, training cost)
Expenses for transferring business toWORLD INTEC FUKUSHIMA (71)
1,223

600

400

200

2011/12588

2012/12
1,223

Up ¥635 million0

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

12Financial Condition B/SCurrent assets(Million yen)

Total assets

27,00023,805

Cash and deposits•

Notes and
4,659 （ +767）
accounts receivable
Real estate
10,054 （+2,970）
for sale in process•

17,12618,000•21,27915,4079,000

4,897 （+1,547）

Increase in new consolidated
subsidiaries

Increase in net sales

Acquisition of land for new
PJ and increase in constructionin process

Fixed assets•

Tangible fixed assets

733 （+69） Renovation of GEOGRAPHIC••

Intangible fixed assets 757 （ +615） DOT goodwill +500
Investments and1,034 （ +121）Investment in WR Investment
other assets
Limited Partnership +100

INFORMATION OF KYUSHU building

0(Million yen)

27,00018,000

1,719

2,525

End of FY12/11

End of FY12/12

Fixed assets

Current assets

Total liabilities/net assets
23,805
17,126

Current liabilities•

Short-term debt••

Accrued expenses
Notes andaccounts payable

15,7339,387 （ +3,219） Fund for purchase of realestate for sale
2,910 （ +350） Increase in employees
597 （
+43）

Fixed liabilities

11,112

9,000
2,245

•

Long-term debt

4,961

5,826

•

End of FY12/11

End of FY12/12

Reserve for retirement
benefits for employees

1,052

0
Net assets

Fixed liabilities

1,803 （ +1,128）Fund for purchase ofreal estate for sale377 （ +37）

Current liabilities

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

13Cash Flow•

(Million yen)
8,000

•
•

Acquisition of tangible fixed assets△348
Acquisition of intangible fixed
assets△241
Acquisition of new consolidated
subsidiaries
△442

•
•

Net income before income taxes
1,245Real estate for sale △3,022

Investing CF△1,004

7,000
6,000

Operating CF△1,703Financing CF
4,243

5,000
4,000

•

3,000

•

2,000
1,000

Cash and cash
equivalents at endof year•

Net increase in short-term debt
2,019
Net increase in long-term debt
4,702
2,328
Dividends paid
△74

Cash and cash
equivalents at endof year

4,901

3,353

Up ¥1,547 million0
2011/12Financing CF

Investing CF

Operating CF

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

2012/1214

Ⅱ. Segment Highlights

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

15

Human Resources Education Business (Factory/Technology/R&D Businesses)
No. of employees (persons)No. of business partners(Company)(Person)

793

800

12,000696

10,082
9,004

600

400
4,000

Of which
Factory
5,375

6,446

200

185

323

1,600
1,374

207

188

8,000

(Person)

1,200

2011/122012/12

1,380

Designdevelopment

445

224

Designdevelopment

586

800

362

400

Production
technology

929

Production
technology

794

0

0

0

No. of employees in Technology
business (persons)

2011/122012/12
Factory Technology R&D

2011/12
Production technology

2012/12
Design development

Factorybusiness

Number of contracts/employees increased due to the development of smartphone-related electrical andelectronics field but made prior investment to build a logistics contract system

Technology
business

Major customers shifted from semiconductor manufacturers’ production technology field to design development field
Rising demand for information and telecommunications and automobile-related engineers in the design development
field

R&D business

Orders increased in the general temporary staffing field
Converted DOT International specializing in CRO into a subsidiary in November 2012

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

16

Human Resources Education Business; Others(Million yen)

Net sales 6,000

Non-con., others

432
CB, etc.
881

5,000

Others(reclassification)

△252

WITC
Fukushima
1,424

4,000
3,000

2012/12
5,479

2,000
1,000

2011/122,994

Up ¥2,485 million yen

0
2011/12

CB等

その他（組替等）

Administrative
contract

Established WORLD INTEC FUKUSHIMA in March 2012; transferred business from the Fukushima
office of the Factory business; earthquake disaster rehabilitation and reconstruction-related
administrative contract business will continue after April

CB

Steady growth in sales and profits due to selection and concentration with influential clients

GEOGRPHIC
INFORMATION OF
KYUSHU

Steadily received orders for maintenance and digitalization of maps from the governmentand regional companies
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

17

Information Technology &:Total No. of Mobile Phones and Smartphones Sold
Telecommunications BusinessTotal no. of units soldUnits
90,000

Annual sales of more than 300 thousand units

83,19460,00080,34571,19867,68159,53858,8142011 2Q

2011 3Q

66,04230,00002011 4Q

2012 1Q

2012 2Q

2012 3Q

2012 4Q

Note) The above are consolidated fiscal years and are 3 months behind the calendar.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

18Real Estate Business(Million yen)

10,000

Breakdown of net sales(Billion yen)

8,890

Other
businesses

Situation of land purchase(contract basis)

200

274.0

8,000

Land/building

1,204

150

Condomini
ums
7,205

100

6,000
4,000
2,000

1,514
Other
businesses

95.5
Land/building

0

171.8
50

1,413

2011/1257.0

2012/12

Condominiums

Land/building

Contract sales

Other businesses

Improvement in
profitability

85.3

02010/122011/122012/12*Achievements in purchase are converted into net sales

Construction/delivery of 4 properties (Shinagawa-Nakanobu, Ohanajaya, Monzennakacho,
Kanamachi)
Turned a single-year profit 3 years after the establishment and eliminated cumulative loss

Purchasing
situation

Got in a good stock of land for condominiums
Already secured land in 2012 for properties to be sold in 2014

Tohoku area

Established World iCity and took over the former Suncity’s business in Tohoku area
Promoted business infrastructure improvement

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

19Real Estate Business: Brisk Sales of Residential Series

FY12/12 Constructed 4 buildings, 177 units
Residential Shinagawa-Nakanobu

Residential Ohanajaya

Residential Monzennakacho

Residential Kanamachi

Feb. 2012 completion 42 units

Mar. 2012 completion 67 units

Jul. 2012 completion 24 units

Sept. 2012 completion 44 units

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

Real Estate Business: Business Infrastructure Improvement in Tohoku Area
・Supply in the Sendai area in 2012 recovered to 1,123 units which is the same level as before theearthquake disaster・A sharp decrease in condominium inventories from 800 units at the beginning of 2009 to 80
units at the end of Dec. 2012
FY14/122 projects/126 units

Land acquired

1 project/60 units
Aobaku-Honcho project
Aoba-ku, Sendai-shi, Miyagi 60 units

Develop Residential series in Tohoku area
based on the belief of “Building a community
where people and culture come together”,
which is in common with World Residential

Residential Minami-Sendai
Taihaku-ku, Sendai-shi, Miyagi 54 units

Kaiseiyama Koen project
Koriyama^shi, Fukushima 72 units

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

Ⅲ. FY2013 Business Forecasts

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

22Summary of FY2013 Forecast

１

Expect 6.6% increase in sales and 39.0% increase in ordinary
income YoY in FY12/13→ Expect record-high operating income and ordinary income
since FY12/07

2

Larger market share leading to profitability
Prior investment burden for the setting up of the Factory business is up
to the 1st half
→ Recover investment in the 2nd half which will contribute to profit
increase for the current fiscal year (Expect to go into the red in 1Q)

3

In the Real estate business, decrease in the number of condominiums
delivered will be offset by sales of land/buildings→ Tohoku area, based on accrual, will incur expenses in 2013
but is expected to contribute to earnings from FY12/14

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

23Summary of FY2013 Business Forecast
Million yen, %FY12/12actualNet sales
Operating income
Ordinary income
Net income
EPS (yen)
Dividend per share (yen)FY12/13
forecast

53,007
1,223
1,290
658
40.3
8.5

YoY
Change Pct. Change

56,487 3,480
630
1,853
503
1,793
54
712

6.6
51.5
39.0
8.2

42.4
8.5

FY13/1Q～2Q
forecast

FY13/3Q～4Q
forecast

26,824608
580
178

29,662
1,244
1,213
534

10.6
0.0

31.8
8.5

 Sales: Human resources education business will account for 64.8% of total sales
expecting 14.5% growth YoY

 Profits: Include prior investments for launching several new large projects in the Factorybusiness in the 1st half
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

24

FY2013 Business Forecasts by Segment
Million yen, %FY12/12actualFactorybusiness

Technology
business

R&D businessInform ation
technology &telecom m unicat
ions business

Real estatebusiness

OthersTotal

17,893

FY12/13
forecast

YoY
ChangePct. Change

FY13/1Q～2Q
forecast

FY13/3Q～4Q
forecast

3,595

20.1

9,241

12,246

653

133.5

283

859

Segment income

489

21,488
1,142

Profit margin

2.7%

5.3%

－

－

3.1%

7.0%

Net sales

6,197

1,004

16.2

3,219

3,982

Segment income

356

7,201
573

217

61.0

200

373

Profit margin

5.7%

8.0%

－

－

6.2%

9.4%

Net sales

2,984

1,069

35.8

1,884

2,168

Segment income

269

4,053
443

174

64.7

160

282

Profit margin

9.0%

10.9%

－

－

8.5%

13.0%

11,658

△658
△108

△ 5.6
△ 26.5

5,706

5,293

183

116

－

3.2%

2.2%

△ 6.6
△ 15.6

4,474

3,740

288

102

－

6.4%

2.7%

△ 17.4
△ 2.8

2,297

2,230

83

122

－

3.6%

5.5%

6.6

26,82429,662

51.5

△591
608

△611
1,244

2.3%

4.2%

Net sales

Segment income

408

11,000300

Profit margin

3.5%

2.7%

Net sales

8,794

Segment income

462

8,215
390

Profit margin

5.3%

4.7%

Net sales

5,479

Segment income

211

4,528
205

Profit margin

3.9%

4.5%

Net sales

53,007

Elimination or corporate

△972
1,223

56,487△1,202
1,853

Net sales

Operating income

Operatingmargin

2.3%

3.3%

－

△579
△72
－

△951
△6
－

3,480
－
630
－

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved25Forecast of Change in Net Sales by Segment(Million yen)
60,000Technology
1,004

R&D
1,069
Information technology &telecommunications△658
Factory
3,595

55,000Technology
2012/1253,007

Real estate△579

Be conservative assuming thebacklash against favorable
smartphone sales in FY2012

50,000Downsizing of
Administrative contract
business due to theprogress of earthquake
disaster reconstruction

Others△951

Due to the difficulty of purchase
in FY2011, planned number ofunits sold is 100 against 177
Information
technology
units
in 2012
R&D & telecommunications
Real estate
Others2013/1256,487

Factory

45,000～40,0002012/12Up ¥4,480 million
Factory

Technology

Information
R&D
technology & telecommunications
Real estate

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

Others2013/1226

Forecast of Change in Operating Income by Segment(Million yen)
2,500
Information technology &telecommunications

2,300

R&D
174

2,100

△108
Real estate△72

Technology
217

1,900

Prior investment in
TohokuOthers△6

Elimination/
corporate
△230

1,700
Factory
653

1,500
1,300
1,100
900

Up ¥630 million

2013/121,853

2012/12
1,223

700
500

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved27

Ⅳ. Future Business Strategy

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved28Summary of Medium-Term Management Plan
FY12/16

Aiming to Become a Company with Sales of 100 Billion Yen!

Net sales
OperatingincomeＲＯＥ• ¥100 billion

FY12/12¥53.0 billion• ¥5 billion

FY12/12¥1.22 billion(2.3%)

Operating margin More than 5%• More than 20%

FY12/12
13.1%

Shareholders’equity ratio• More than 25%

FY12/12
21.1%

Dividend policy• Dividend payout ratio of
more than 20%

FY12/12
21.1%(¥8.5)

Return On Equity

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

29Basic Strategies

1

Respond flexibly to the external environmental change
Put management resources in fields with potential for more growth2

From market share expansion strategy in FY2012 to profitoriented strategy in FY2013

3

Collaboration among the group and pursuit of synergy

Construct an optimum portfolio to further boost growth potential and increase profitability

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

List of Priority Issues by Segment
Put management resources in fields
with potential for more growth

Collaboration among the groupand pursuit of synergy

Build a basis focusing on
profitability

Strengthen logistics (for direct marketing/EC)
Strengthen marketing for parts/material
manufacturers

Diverse range of human resources
Expansion of conservation/repair domains
Strengthening of collaboration withTechnology business

Zero employment lead time due to theintroduction of unique registration
recruitment control system, cut recruiting
cost, respond to production change

Strengthening of collaboration with FactorybusinessStrengthening of collaboration with GEOGRAPHICINFORMATION OF KYUSHU in SI
Strengthening of collaboration with Advan

Enhance training for engineers with a mix
of OJT and off OJT, reduce employee
turnover by improving the system forcareer formation

R&D business

Strengthen marketing for universities/research
institutions/industry-academic PJ
Increase in personnel in the biotechnology field
including generic
Increase in the research posts in the general
temporary staffing domain

Clear effect of DOT acquisitionPursuit ofsynergy of temporary staffing and contract
work

Improve CRO toward expanding highly
profitable CRO domain

Information
technology &telecommunications

Strengthen capable store network throughscrap-and-build method

Strengthen marketing for corporations
through collaboration with Best IT
Business

Effective profit increase through stronger
cross-sell/up-sell

Real estatebusiness

Supply of condominiums in Tohoku area withpotential for growth due to earthquake
disaster reconstruction demand
Supply 1,000 units a year including otherregions

Collaboration with material manufacturers
and manufacturers in the environmental
energy field who are Factory businessclients

Business Infrastructure Improvement in
Tohoku Area
Business Infrastructure Improvement inother regions

Expansion of CB business
Expansion of Construction business

Collaboration with Technology
business/temporary staffing/contractdevelopment
Collaboration with real estate business(construction)

Review/disposal of unprofitablebusinesses

Factorybusiness

Shift from semiconductor toautomobile/smartphone/tablet-related

Technology
business

Others

Shift from production technology to design
development

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved31

Human Resources Education Business: Factory Business Priority Issue
Automobile

Electronics

End productmanufacturer

End productmanufacturer

Precision equipment

Target strategy

End productmanufacturer

Focus on marketing for global parts/material
manufacturers

Parts/material
manufacturers

Sales office strategy

・Has a sharp fluctuation in production and it is likely to be alarge short-term project・Speed is required for the improvement in a system for
temporary staffing and contract work

While peer companies carry out “business strategy,” World Intec willconduct a community-based marketing taking advantage of its
locations through sales office strategy
Having many projects in many locations will contribute to recruitment

Diversified range of talent pool

Recruitment strategy
Introduce a “registration-type” system which manufacturing did not have
Substantially reduce recruiting cost through zero lead time for recruitment
and by securing diversified range of personnel
To a high unit price businessContract forconservation/rep
air works

Easy to gather projects andpersonnel taking advantage ofmany offices

Contract for
logistic bases

Sales office strategy

Can adjust personnel
even at low unit price

Unique registration
recruitment control
systemDomain expansion strategy
Cover the fluctuation of production with personnel transfer due tocontract for logistics bases project work, etc.
Cover new domains through conservation/repair to stabilize
employment

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

32

Human Resources Education Business: Technology Business Priority Issue
Target strategy
Shift to a growth market (business category)-specific business structure
Shift from semiconductor to parts/materials in production technology
Further strengthen information & telecommunications service field in design
development

Factorybusiness

Production technology
field collaboration

Break dependence on
semiconductor

Technology
business

Cross-selling strategy
Promote development of new demands through cross-selling with group businessE.g. Collaboration with Factory business in the production technology field
Collaboration with GEOGRAPHIC INFORMATION OF KYUSHU in SI
development, collaboration with Advan in web development

Recruitment strategy
Contracted SI
development
collaboration

GEOGRAPHICINFORMATIONOF KYUSHU

Contracted web
development collaboration
Recruitment/engineer
training collaboration

Advan

Step up recruitment of entry-level engineers (technical college, bachelor, master)
Step up recruitment through collaboration with Advan in the support service for job
seekers
Enhance training for engineers to increase earning power by enhancing
technological capability

Increased retention strategy
Enhance training for engineers with a mix of OJT and off OJT, reduce
employee turnover by improving the system for career formation

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

Human Resources Education Business: R&D Business Priority Issue
Synergy with DOT International
2013 = The first year of actual
collaboration
Build a system capable of taking full advantage of collaboration by using both companies’ strengths andcover for each other’s weaknesses

WITC

DOT
◎Expertise (name recognition in
the industry)◎Trust from existing clients(listed companies/name
recognition)◎Recruitment/retention knowhow◎Training knowhow△Size/financial ground△CRO business training
knowhow△Recruitment/retention knowhow

Differentiate through human resources development and stronger
marketing using company training■Expand customer share (marketing collaboration for WITC customers)■Increase in marketing staff (development of marketing staff by DOT)
■Setting up of a department specializing in recruitment (collaboration with DOT)
■Setting up of a department specializing in training (collaboration with DOT)

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved34

Human Resources Education Business: R&D Business About CRO
Site Management Organization

SMO

Contract clinical trials of medical
institutions

Specific temporary staffing/general
temporary staffing to drug makers

Basicresearch

Nonclinicaltrial

2 to 3years

Market size
About
¥40 billion

Clinical trial 3 to 7 years

3 to 5years

PhaseⅠ
trial

PhaseⅡ
trial

PhaseⅢ
trial

Animal testing

Minority healthypeopleMinority patients

Many patients

Approval
review

CSO

CRO

Contract drug
marketingContract clinical trials of drug manufacturers

Market size
About¥120 billion

Recruitmentof study
participants/e
xplain/acquireconsent form

Conduct ofclinical trials

4 to 10years
Contract Sales Organization

Contract Research Organization

Trial notification
Medicalinstitution
contract

Marketing

Postmarketingsurveillance

Trial dataprocessing/an
alysisSubmitapplication for
approval to the
Ministry of
Health, Laborand Welfare

DOT International business domain

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

MR business
Sales,
marketingMarket size
About
¥55 billion
35

Human Resources Education Business: Difference from Other Companies
Can increase steadily on a solid foundation
Past

Other
comp
anies

M&A to simply
increase operating
income

World
Intec

FuturePromoted a strategy to
expand the company
through organization
reinforcement

M&A
Strategy to expand
new field by focusing
on synergy

Net sales
Million yen
60,000
Lehman Shock

50,000M&A
40,000※World Intec’s figures represent only the Human
resources education business and other companies’
figures represent consolidated figures.
M&A

M&A
M&A

30,000

M&A

WITC
Company U

M&A

Company O
Company N

20,000
M&A
M&A
10,000
M&A
0

2004

2005

2006

2007

2008

2009

2010

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

2011

2012
36

Real Estate Business

Real estate sales
Condominium
Land/building
Contract selling
OthersReal estate sales total
Gross profit
Operating income

FY12/13

FY12/11

Pct. of
sales

1,414
0
1,414
5
96
1,515
605.5
△ 100.7

93.3
0.0
93.3
0.4
6.3
100.0
40.0
△ 6.6

FY12/12

8,410
7,205
1,205
206
274
8,890
2,099
428.8

Pct. of
sales

94.6
81.0
13.6
2.3
3.1
100.0
23.6
4.8

FY12/13(est.)

7,796
5,687
2,108
248
171
8,215
2,014
390

Pct. of
sales

94.9
69.2
25.7
3.0
2.1
100.0
24.5
4.7

Absorb World iCity’s selling expense and expect a slight profit decline YoY
井Planned supply of
condominiums in Tokyo

FY12/12 4 projects, 177 units → FY12/13 2 projects, 100 units

Prior investment period

There will be a time lag between prior investments and sales of properties
purchased in the previous fiscal year and expect to supplement it with sales oflands/buildings

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

37Real Estate Business

Latest status report

Status of theachievement inland purchaseStatus of theachievement insales■Fully stocked properties to be delivered in FY12/13 andFY12/14■Start purchasing residential land in 2013

■Signed a contract regarding 50% of the number of units ofcondominiums to be delivered■Signed a contract regarding over 70% of the planned salesof land and building＊As of January 31, 2013

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

38Real Estate Business: Planned Supply of Condominiums in Tokyo Area

FY12/13

2 projects/100 units (for sale)

FY12/14

5 projects/295 units (to be sold)Residential Nakano-Sakaue
Nakano-ku, Tokyo 60 units
Araiyakushimae project
Nakano-ku, Tokyo 40 units

MonzennakachoⅡproject
Koto-ku, Tokyo 28 units

Shinagawa-NakanobuⅡproject

Residential Washinomiya

Shinagawa-ku, Tokyo 52 units

Nakano-ku, Tokyo 40 units
Tsunashima project
Kohoku-ku, Yokohama 45 units

Sakuragicho project
Naka-ku, Yokohama 130 units

Copyright © WORLD INTEC CO.,LTD. All Rights ReservedConsolidated Business Results
Net sales(Million yen)

60,000(Million yen)

Expect record-high sales and profits in FY12/13
56,487

Operating
4,000 income

48,78850,0003,000
40,0001,853

30,000

2,000

1,345
20,0001,000
10,0000

2006/12

2007/12

Human resources

Others2008/12

2009/122010/12

Information technology & telecommunications

2011/122012/12

Real estate

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

2013/12Est.

0

Operating income (right scale)40

Shareholder Return
（％）

(Yen)

50.0

50.0

40.0

40.0

30.0

30.0

20.0

20.0

10.0

10.0

0.0

2006/12

2007/12

2008/12EPS

2009/122010/122011/122012/122013/12Est.

0.0

Dividend payout ratio(Note) Conducted a 100-for-1 stock split on Jan. 1, 2010. EPS is calculated retroactively.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

41World Intec Corporate Profile
Company

EstablishedWORLD INTEC CO., LTD.
4F No.2 Quest Building, 1-3-9 Bashaku, Kokurakita Ward, Kita-Kyushu
City, Fukuoka Prefecture
February 12, 1993

CEO

Eikichi Iida

Head Office

Human resources business centered on manufacturing (R&D,
Main Businesses Design/development, production technology, manufacturing,logistics, sales, after-sales services)
Capital¥700 million (as of December 31, 2012)

Workforce

10,584 (consolidated/ as of December 31, 2012)

Locations

60 (consolidated/ as of December 31, 2012)

Listed Date

February 9, 2005 (JASDAQ Stock Exchange / Stock Code 2429)《Corporate Symbol》
WORLD INTEC’s corporate symbol represents the
cutting edge in the effort to create new meaning to workand the joys associated with one’s vocation. The blue
sphere stands for our engineering expertise and the trust
we have accumulated, while the yellow figure symbolizes
further growth and development, as well as the corporate
ideal we aim to realize.

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved42Reference Human Resources Education Business-related Data
Factory business[Pct. of sales by region]

2012/122011/12

Kyushu Chugoku
40.0
29.4
39.1
28.1

Kansai
7.0
7.2

Tokai
3.3
5.5

Kanto
Tohoku
13.5
6.9
13.8
6.2

[Pct. of sales by category]Precision Environmen
Semi Automobile Electronics
Food/con
Machinery Logistics equipment tal energy Chemical
conductor
sumables

2012/122011/12

25.1
35.2

11.5
7.3

18.8
13.9

8.2
10.3

6.7
2.1

6.3
2.4

4.6
6.3

3.3
6.1

3.2
2.8

Others12.3
13.5

Technology business[Pct. of sales by category]Precision Environmen
Semi Automobile Electronics
Machinery equipment tal energy Chemical
conductor

2012/122011/12

59.1
65.6

6.1
3.5

5.3
5.3

3.3
2.9

1.4
1.0

4.0
3.1

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

0.4
0.6

Others6.3
7.6

43

For more information

Akihiko Omoto
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 Reserved

44