Consolidated Financial Results for the Second Quarter of 2020
(Six Months Ended June 30, 2020)[Japanese GAAP]
August 3, 2020

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange, First Section
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 filing of Quarterly Report:
August 7, 2020
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Yes (for institutional investors and analysts)
Holding of quarterly financial results meeting:Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Six Months of 2020 (January 1 to June 30, 2020)(1) Consolidated results of operations
Net sales
Million yen

Operating profit%

Six months ended Jun. 30, 2020
70,844Six months ended Jun. 30, 201966,827
Note: Comprehensive income (millions of yen)

Million yen%

Million yen

6.0
2,773
9.6
3.8
2,529
26.2
Six months ended Jun. 30, 2020:
Six months ended Jun. 30, 2019:

Net income per share
Six months ended Jun. 30, 2020
Six months ended Jun. 30, 2019

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent%

Million yen

2,872
13.6
2,529
26.4
2,603 (up 51.0%)
1,724 (up 52.3%)

%

2,497
1,685

48.2
56.2

Diluted net income per share

Yen

Yen

145.25100.10144.61
99.00(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

As of Jun. 30, 2020
77,803
26,674As of Dec. 31, 201987,352
23,944
Reference: Shareholders’ equity (millions of yen)
As of Jun. 30, 2020: 25,210

Yen

32.4
1,444.85
25.9
1,345.71
As of Dec. 31, 2019: 22,662

2. Dividends
Dividends per share
1Q-end2Q-endYen

3Q-endYear-end

Total

Yen

Yen

Yen

Yen

2019
0.00
2020
0.00
2020 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

-

52.70

52.70

-

99.80

99.80

3. Consolidated Forecast for 2020 (January 1 to December 31, 2020)
Net sales
Million yen

Operating profit%

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

Ordinary profit%

Million yen%

Yen

Full year
159,682 17.1
7,851
66.0
8,338
73.5
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

5,601

89.5

332.60* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): Yes
Newly added: 1 (JW Solution Co., Ltd.) Excluded: 1 (HOEIKENSETSU Co., Ltd.)(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, ( 4) Notes to Quarterly
Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated
Financial Statements” on page 12 for further information.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Jun. 30, 2020:

17,561,600 shares

As of Dec. 31, 2019:

16,961,600 shares

As of Dec. 31, 2019:

121,000 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2020:

113,300 shares

3) Average number of shares during the period
Six months ended Jun. 30, 2020:

17,194,280 shares

Six months ended Jun. 30, 2019:16,836,147 shares* The current financial report is not subject to quarterly review 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 f uture performance. Actual results
may differ materially from the forecasts for a number of reasons. Please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward -looking Statements” onpage 5 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for quarterly financial results
The Company plans to hold a financial results meeting for institutional investors and analysts on Monday, August 17, 2020.
Supplementary materials for the quarterly financial results will be disclosed on August 17, 2020, using the Timely Disclosure
network (TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

5(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

5

2. Quarterly Consolidated Financial Statements and Notes

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income

8

Quarterly Consolidated Statement of Income
For the Six-month Period

8

Quarterly Consolidated Statement of Comprehensive Income
For the Six-month Period9(3) Quarterly Consolidated Statement of Cash Flows

10(4) Notes to Quarterly Consolidated Financial Statements

12

Going Concern Assumption

12

Significant Changes in Shareholders’ Equity

12

Changes in Significant Subsidiaries during the Period

12Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

12

Additional Information

12

Segment Information

13

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of 2020, the Japanese economy was severely impacted by the COVID-19 outbreak as mucheconomic activity came to a halt. Economic activity slowly resumed after the state of emergency was lifted at theend of May. Although this action ended the steep economic downturn, the outlook remains extremely unclear. The
COVID-19 infections are continuing to increase in Brazil and other emerging countries and the number of
infections has started climbing again in the United States and Japan.
Although COVID-19 has affected the performance of the World Holdings Group, the impact of this crisis was
minimized by the Group’s diverse client base that covers many industries and by the Group’s longstanding
commitment to rigorous risk management. In the first half of 2020, sales and earnings were higher than one year
earlier with sales below the plan and operating profit above the plan.
Net sales increased 6.0% year on year to 70,844 million yen. Operating profit increased 9.6% to 2,773 million
yen, ordinary profit increased 13.6% to 2,872 million yen, and profit attributable to owners of parent increased
48.2% to 2,497 million yen.
Factory Staffing Business
The suspension of operations at some client companies in the automotive parts and other industries due to
COVID-19 had a significant negative effect on the performance of this business. However, first half sales andearnings were generally as planned because of the strong performance of staffing services in volving the 5G
mobile communication and semiconductor sectors. Another contributor to first half performance was the logistics
sector in association with the growth in purchases by people who are staying home for safety. Overall, sales
increased but earnings declined from one year earlier.
We are working with clients to prevent the spread of COVID-19, such as by avoiding as much as possible
recruiting and placement activities that move people from one region of Japan to another. We are increasing therecruiting of people locally and the use of consortiums for securing the people we require. In addition, we
frequently check the health of our personnel, provide thermometers to job sites where our people are assigned,
monitor the status of personnel’s health over a two-week period before they are assigned, and have many otheractivities to protect our workforce from COVID-19. The highest priorities of all these activities are preserving
jobs for our workforce and ensuring that clients can use our services with c omplete confidence.
As a result, sales were 25,111 million yen, up 5.0% year on year and segment profit decreased 15.9% to 957
million yen.
Technology Staffing BusinessAlthough COVID-19 had a negative impact on the technology staffing services market, t here was strong demand
for staffing in the semiconductor sector. Performance also benefited from the ability to charge higher fees becauseof the new and higher skills of personnel due to training programs and other measures that have been a priority ofours for some time. As a result, s sales and earnings were higher than one year earlier, with sales below the planand earnings well above the plan.
Activities are under way to further upgrade training programs and add new types of learning programs in order toenhance the skills of the workforce for technology staffing assignments as well as to shift skills to fields where
the demand for personnel is currently strongest. These measures are positioning this business for upcoming trends
in the technology sector.
Sales were 8,353 million yen, up 1.6% year on year and segment profit increased 14.5% to 886 million yen.
R&D Staffing BusinessIn the clinical research outsourcing sector, performance benefited from an increase in demand involving testingfor new drugs and other activities associated with COVID-19. However, market conditions made it difficult toreceive orders for new projects. In the research personnel sector, although the market was generally weak, there

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

was an increase in demand for personnel for jobs involving analysis and pharmaceuticals because of higher salesof general pharmaceuticals. Training programs to enhance the skills of R&D staffing personnel also contributed
to the performance of this business. Overall, sales and earnings were higher t han one year earlier, with sales lessthan planned and earnings in line with the plan.
The demand for temporary placements of R&D personnel is increasing. This business has a training system thatuses joint research laboratories operated with many universities (Tokyo University, Kyoto University, Osaka
University, Tokyo Metropolitan University and others). These laboratories improve the ability to secure thepeople needed for R&D staffing by giving this business access to a large number of prospective R&D specialists
with a diverse range of backgrounds and skills.
Sales were 3,515 million yen, up 0.3% year on year, and segment profit increased 44.4% to 381 million yen.
Sales & Marketing Staffing Business
Staffing orders in the apparel category decreased because of COVID-19 but the light duty, general merchandise
store and call center categories performed well. Furthermore, this business has become profitable because of thesuccess of structural reforms that were implemented during the past few years. Sales and earnings were higher
than one year earlier as this business became profitable even though sales were less than planned.
Sales were 1,941 million yen, up 14.5% year on year, and segment profit was 3 million yen, compared with asegment loss of 33 million yen one year earlier.
Real Estate BusinessIn the core real estate development category, COVID-19 had a negative effect on condominium procurement andsales activities. Despite this challenge, the development business performed well. The main reasons are actions
that began several years ago to prepare for upcoming changes in market conditions and sales of land for business
use that exceeded the plan due to sales activities that reflected current market trends. Growth of the renovation
business temporarily slowed mainly because suspensions of business operations of major brokers due to
COVID-19 reduced the size of the sales network. Nevertheless, sales and earnings in this segment increased, withsales below the plan and earnings in line with the plan.
We are purchasing properties very carefully while closely watching movements in real estate prices. At the sametime, we are establishing a base for asset management and other financial businesses involving real estate. We aremaking progress with preparations for upcoming activities based on the outlook for a significant change in thereal estate business climate.
The performance of each category of this segment was as follows.
The real estate development business sold 27 condominium units, 14 detached houses and 8 sites for business use,
resulting in property sales of 17,446 million yen. Sales from real estate brokerage and other activities totaled
1,060 million yen.
In the renovation business, 295 residences were sold and sales were 6,115 million yen.
In the prefabricated house business, sales were 920 million yen.
Sales were 25,541 million yen, up 25.3% year on year and segment profit increased 49.5% to 1,835 million yen.
Information and Telecommunications Business
Structural reforms implemented in prior years have improved the profitability of this business as the realignmentof the mobile phone sales industry appears to be in the final stage. Although sales were lower than one year
earlier and less than planned, there was a big improvement in earnings.
There is a one quarter delay in the reported sales and earnings of this business. In the six -month period from
October 2019 to March 2020, COVID-19 had almost no effect on results of operations. Even after March, the
COVID-19 crisis has not significantly impacted performance even though store operating hours were reduced andsales volume declined.

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

Sales were 5,252 million yen, down 24.9% year on year, and segment profit increased 462.9% to 275 million yen.
OthersAgricultural parks were forced to suspend operations in April and May, normally the busiest time of the year, in
response to requests from local governments because of the declaration of a state of emergency. Operations ofthese parks were further impacted by the reduction of certain activities be fore and after park closures. As a result,first half sales and earnings were far below one year earlier and this year’s plan. The business climate remains
difficult even after the end of the state of emergency because restrictions on travel to a different prefecture arestill in place. Currently, the number of visitors is slowly recovering as agricultural parks take advantage of theirability to host people while avoiding close contact among visitors.
Sales were 1,126 million yen, down 46.8% year on year, and there was a segment loss of 369 million yen,
compared with a segment profit of 196 million yen one year earlier.

Overview of Business Results by Segment(Millions of yen)

Human
ResourcesandEducation
Business

Factory
Staffing
Business

Net sales

23,91325,380

Segment profit

1,137

962

(Profit margin)(4.8%)

Technology
Staffing
Business

Net sales

8,220

8,496

Segment profit

774

563

(Profit margin)(9.4%)

R&D
Staffing
Business

Net sales

3,504

3,603

Segment profit

263

296

(Profit margin)(7.5%)

Sales &
MarketingStaffing
Business

Net sales

1,695

2,171

Segment profit

(33)

(54)

(Profit margin)-

Subtotal(Reference)

Real EstateBusiness

First half of First half of First half of
2019
2020
2020
ResultPlan
ResultReal EstateBusiness

Information
andTelecommu
nications
Business

Information
andTelecommu
nications
Business

OthersOther
Business

Total

Year-on-year change
Vs. planAmount%25,111

(269)

1,198

5.0

957

(5)

(180)

(15.9)

8,353

(142)

133

1.6

886

323

112

14.5

3,515

(87)

11

0.3

381

84

117

44.4

1,941

(229)

246

14.5

3

57

36

-

(3.8%)(10.6%)(10.8%)(0.2%)Net sales

37,33339,651

38,922

(729)

1,589

4.3

Segment profit

2,142

1,768

2,228

460

85

4.0

(Profit margin)(5.7%)Net sales

20,377

26,101

25,541

(559)

5,164

25.3

Segment profit

1,227

1,317

1,835

518

608

49.5

(Profit margin)(6.0%)Net sales

6,999

5,619

5,252

(366)

(1,746)(24.9)

Segment profit

48

115

275

159

226

462.9

(Profit margin)(0.7%)Net sales

2,117

2,193

1,126

(1,066)(990)(46.8)

Segment profit

196

112

(369)

(482)

(566)

-

(Profit margin)(9.3%)Net sales

66,82773,566

70,844(2,722)

4,016

6.0

Elimination or
corporate(1,086)(1,191)(1,196)

(4)

(110)

-

Operating profit

2,529

2,122

2,773

651

244

9.6

(Profit margin)(3.8%)(5.7%)(7.2%)(5.2%)-(3.9%)

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

(2) Explanation of Financial Position
AssetsTotal assets decreased 9,548 million yen from the end of 2019 to 77,803 million yen at the end of the second
quarter of 2020. This was mainly due to an increase of 1,416 million yen in cash and deposits, and decreases of863 million yen in notes and accounts receivable-trade, 6,749 million yen in real estate for sale and 3,118 million
yen in real estate for sale in process.
Liabilities
Total liabilities decreased 12,279 million yen from the end of 2019 to 51,128 million yen. This was mainly due todecreases of 489 million yen in accounts payable-real estate business, 2,506 million yen in short-term borrowings
and 8,326 million yen in advances received.
Net assets
Net assets increased 2,730 million yen from the end of 2019 to 26,674 million yen mainly due to increases of 453
million yen in share capital, 455 million yen in capital surplus and 1,644 million yen in retained earnings.
Cash Flows
Cash and cash equivalents at the end of the first half of 2020 increased 1,416 million yen from the end of 2019 to
17,929 million yen.
Cash flows from operating activities
Net cash provided by operating activities was 2,799 million yen. Main positive factors include profit before
income taxes of 3,051 million yen, an 875 million yen decrease in trade receivables and a 7,579 million yen
decrease in real estate for sale. Major negative factors include an 8,327 million yen decrease in advances
received.
Cash flows from investing activities
Net cash provided by investing activities was 246 million yen. Main positive factors include proceeds from salesof shares of subsidiaries resulting in change in scope of consolidation of 2,029 million yen. Main negative factors
include payments of 1,230 million yen for purchase of investments in non-consolidated subsidiary and 535
million yen for purchase of property, plant and equipment.
Cash flows from financing activities
Net cash used in financing activities was 1,783 million yen. Main positive factors include proceeds of 2,962
million yen from long-term borrowings. Main negative factors include a net decrease of 1,224 million yen in
short-term borrowings and repayments of long-term borrowings of 3,480 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
Although COVID-19 had an effect on results of operations in the first half of 2020, our diversified businessportfolio spanning several industries and our rigorous risk management activitie s minimized the impact of thiscrisis. However, there are concerns about the possibility of a second wave of COVID -19, particularly in Tokyo,
and of the emergence of negative effects of this crisis on our business operations later in 2020. A second wave orappearance later this year of negative effects may affect results of operations of the World Holdings Group.
The consolidated forecast announced on February 10, 2020 does not include the impact of the COVID -19
pandemic. We have not changed our consolidated forecasts at this time because the impact on the first halfearnings was limited and the outlook is uncertain. An announcement will be made promptly if a forecast review isneeded.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of 2020
(As of Jun. 30, 2020)2019(As of Dec. 31, 2019)
AssetsCurrent assets
Cash and deposits

16,513

17,929Notes and accounts receivable-trade

12,093

11,230813

1,041

16,373

9,623

84

66

Real estate for sale in process

26,234

23,116

Other

4,814

3,643

(6)

(3)

76,92066,647

5,919

5,242

Goodwill

436

161

Other

254

214

Total intangible assets

690

376

Investment securities

856

1,992

Deferred tax assets

Merchandise and finished goods
Real estate for sale
Work in process

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

Investments and other assets
1,467

2,040

Leasehold and guarantee deposits

943

934

Other

777

793

Allowance for doubtful accounts

(224)

(224)

Total investments and other assets

3,820

5,537

10,431

11,15687,35277,803

1,402

1,221

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Accounts payable-real estate business

1,004

515

Short-term borrowings

27,701

25,194

Accrued expenses

5,786

6,133

Advances received

9,395

1,069

Income taxes payable

1,226

1,256

Accrued consumption taxes

1,495

1,802

142

183

Provision for bonuses
Other

4,634

2,777

Total current liabilities

52,79040,155

8,592

8,906

182

159

1,573

1,640

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

6

268

266

10,617

10,973

63,40851,128

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

(Millions of yen)
Second quarter of 2020
(As of Jun. 30, 2020)2019(As of Dec. 31, 2019)
Net assets
Shareholders’ equity
Share capital

787

1,241

Capital surplus

984

1,439

Retained earnings

20,98822,632

Treasury shares

(127)

(118)

Total shareholders’ equity

22,63325,194

Valuation difference on available-for-sale securities

0

(14)

Foreign currency translation adjustment

0(0)Remeasurements of defined benefit plans

28

31

Total accumulated other comprehensive income

29

15

122

27

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests

1,159

1,436

Total net assets

23,944

26,67487,35277,803

Total liabilities and net assets

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)(Millions of yen)First six months of 2020
(Jan. 1 – Jun. 30, 2020)

First six months of 2019
(Jan. 1 – Jun. 30, 2019)
Net sales

66,827

70,844

Cost of sales

53,63858,880Gross profit

13,189

11,963

Selling, general and administrative expenses

10,6599,189

Operating profit

2,529

2,773

13

30

Non-operating income
Subsidy income
Income of support to investment in property andequipment
Other

24

48

102

122

Total non-operating income

140

201

Interest expenses

92

85

Other

47

17

Total non-operating expenses

140

103

2,529

2,872

Non-operating expenses

Ordinary profit
Extraordinary income
Casualty insurance income

224Gain on sales of shares of subsidiaries and associates-

175

Consumption taxes differential

60

-

Other

0

-

Total extraordinary income

83

180

Impairment loss

3-

Loss on disaster

13

1

Extraordinary losses

Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8

17

1

2,596

3,051

861

433

1,734

2,618

49

121

1,685

2,497

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Millions of yen)First six months of 2020
(Jan. 1 – Jun. 30, 2020)

First six months of 2019
(Jan. 1 – Jun. 30, 2019)
Profit

1,734

2,618

Valuation difference on available-for-sale securities

(14)

(14)

Foreign currency translation adjustment

(4)

(2)

8

2

(10)

(15)

1,724

2,603

1,675

2,483

48

119

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

(3) Quarterly Consolidated Statement of Cash Flows(Millions of yen)First six months of 2020
(Jan. 1 – Jun. 30, 2020)

First six months of 2019
(Jan. 1 – Jun. 30, 2019)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Interest and dividend income
Loss (gain) on sales of shares of subsidiaries andassociates
Interest expenses
Loss on retirement of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in real estate for sale
Increase (decrease) in trade payables
Increase (decrease) in advances received
Increase (decrease) in accrued expenses
Increase (decrease) in other current liabilities
Other, net

2,596
396
3
306
2

3,051
403
87
(2)

(497)

2

106
(8)

111
(8)

-

(175)

92
39
758
(185)
(6,828)
(581)
(43)
410
(1,040)
271

85
4
875
(221)
7,579
(259)
(8,327)
335
(618)
291

SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund(4,201)17(91)(1,701)
847

3,217
7
(86)
(1,074)736

Net cash provided by (used in) operating activities(5,129)

2,799

0
(174)
(592)
(118)

21
(1,230)
(535)
(17)

-

2,029

(30)
0
(39)
(27)
(980)

(69)
(5)
52
246

3,551
2,535
(1,887)(8)
0(1,224)
2,962(3,480)
(1)
701

-

150

(0)
(1,397)
(48)

(887)
(2)

2,745

(1,783)

Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of investments in non-consolidated subsidiary
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Loan advances
Collection of loans receivable
Net decrease (increase) in lease and guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Proceeds from issuance of shares
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

(Millions of yen)First six months of 2020
(Jan. 1 – Jun. 30, 2020)

First six months of 2019
(Jan. 1 – Jun. 30, 2019)
Effect of exchange rate change on cash and cash equivalents

(3)

(3)

Net increase (decrease) in cash and cash equivalents(3,368)

1,258

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation

18,824

16,513

69

157

Cash and cash equivalents at end of period

15,525

17,92911

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Significant Subsidiaries during the Period
JW Solution Co., Ltd., which was a non-consolidated subsidiary in 2019, is included in the consolidated financial
statements starting in the first quarter of 2020 because of the increasing significance of this company. JW
Solution is classified as a significant subsidiary of World Holdings.
HOEIKENSETSU Co., Ltd., which was a significant subsidiary, is no longer included in the consolidated
financial statements from the first quarter of 2020 because World Holdings sold all shares of this company on
March 16, 2020.
The following information is provided even though these three actions were not a change in a significant
subsidiary.
WORLD INTEC AMERICA, INC., which was a non-consolidated subsidiary in 2019, is included in the
consolidated financial statements starting in the first quarter of 2020 because of the increasing significance of thiscompany.
COMPAX Co.,Ltd., which was a non-consolidated subsidiary in 2019, is included in the consolidated financial
statements starting in the first quarter of 2020 because of the increasing significance of this company.
HOEI HOME CO., LTD., which is a subsidiary of HOEIKENSETSU Co., Ltd., is no longer included in the
consolidated financial statements from the first quarter of 2020 because World Holdings sold all shares of
HOEIKENSETSU, which was a consolidated subsidiary in 2019, on March 16, 2020.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
The tax expenses are calculated by first reasonably estimating the effective tax rate after the a pplication of tax
effect accounting with respect to profit before income taxes for the fiscal year in which the quarter under review
falls, and multiplying that rate by the profit before income taxes for the quarter under review. However, World
Holdings uses legally stipulated effective tax rates to calculate tax expenses for cases in which using estimatedtax rates gives a noticeably irrational result.
Additional Information
The number of visitors has decreased at agricultural parks operated by consolidat ed subsidiary Farm Co., Ltd. andother organizations because of government requests for people to stay home and other actions in order to preventthe spread of COVID-19. The number of visitors has recovered somewhat following the end of the state of
emergency. Accounting estimates for the impairment of non-current assets are based on the premise that demand
for the use of these parks will continue to recover slowly and return to the pre -crisis level in 2021.

12

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

Segment Information
I. First six months of 2019 (Jan. 1 – Jun. 30, 2019)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Factory Technology R&D
RealandMarketingStaffing
Staffing Staffing
Estate Telecommuni- Subtotal
Staffing
Business Business BusinessBusinesscations
Business
Business

Others(Note 1)

Total

Amounts
shown onAdjustquarterly
ments consolidated(Note 2) statement ofincome(Note 3)

Net sales
Sales toexternal
23,9138,220 3,504
1,695 20,377
6,999 64,709
2,117 66,826
0
66,827
customers
Inter-segment
sales and
226
49
8
6
291
64
355 (355)
transfers
Total
23,9138,446 3,504
1,745 20,385
7,005 65,001
2,181 67,182 (354)66,827
Segment
1,137
774
263
(33)
1,227
48
3,419
196
3,615 (1,086)
2,529
profit (loss)
Notes: 1. “Others” represent businesses not included in reportable segments and include the operation and management ofagricultural parks, the operation of personal computer schools, the production of websites and other services.
2. The -1,086 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 15
million yen, and -1,101 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 anyof the reportable segments.
3. Segment profit (loss) is adjusted to be consistent with operating profit s hown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
There is no significant change.
Significant gain on bargain purchaseNot applicable.

13

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Second Quarter of 2020

II. First six months of 2020 (Jan. 1 – Jun. 30, 2020)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Others
Factory Technology
R&D
Real
and
MarketingStaffing
Staffing
Staffing
Estate Telecommuni- Subtotal (Note 1)
Staffing
Business Business BusinessBusinesscations
Business
Business

Total

Amounts
shown onAdjustquarterly
ments consolidated(Note 2) statement ofincome(Note 3)

Net sales
Sales toexternal
25,1118,353
3,515
1,941 25,541
5,252
69,717 1,126 70,844
70,844
customers
Inter-segment
sales and
237
92
30
12
373
58
431
(431)
transfers
Total
25,1118,591
3,515
2,034 25,571
5,265
70,090 1,184 71,275(431)
70,844
Segment
957
886
381
3
1,835
275
4,339 (369)
3,970 (1,196)
2,773
profit (loss)
Notes: 1. “Others” represent businesses not included in reportable segments and include the ope ration and management ofagricultural parks, the operation of personal computer schools, the production of websites and other services.
2. The -1,196 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 27
million yen, and -1,224 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 anyof the reportable segments.
3. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Not applicable.
Significant gain on bargain purchaseNot applicable.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachme nts), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

14