Consolidated Financial Results for the Third Quarter of 2023
(Nine Months Ended September 30, 2023)[Japanese GAAP]
November 9, 2023

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 filing of Quarterly Report:
November 13, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
None
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 Nine Months of 2023 (January 1 to September 30, 2023)(1) Consolidated results of operations
Net sales
Million yen

Operating profit%

Nine months ended Sep. 30, 2023
150,976
132,346
Nine months ended Sep. 30, 2022
Note: Comprehensive income (millions of yen)

Million yen%

Million yen%

Million yen

%

4,707
3,883

21.2
23.3

14.1
7,769
17.3
7,690
14.2
30.3
6,621
60.9
6,736
54.4
Nine months ended Sep. 30, 2023: 4,904 (up 20.1%)
Nine months ended Sep. 30, 2022: 4,084 (up 21.6%)

Net income per share
Nine months ended Sep. 30, 2023
Nine months ended Sep. 30, 2022

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

Diluted net income per share

Yen

Yen

268.35222.27267.19221.05(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

155,847
41,266
As of Sep. 30, 2023
123,591
37,195
As of Dec. 31, 2022
Reference: Shareholders’ equity (millions of yen)
As of Sep. 30, 2023: 38,666

Yen

24.8
2,203.22
28.6
2,019.89
As of Dec. 31, 2022: 35,408

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

3Q-endYear-end

Total

Yen

Yen

Yen

Yen

2022
0.00
2023
0.00
2023 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

-

91.50

91.50

103.50103.503. Consolidated Forecast for 2023 (January 1 to December 31, 2023)
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

Full year
201,354
9.6
9,916
11.1
9,453
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

%

Yen

5.8

6,045

13.2

344.84

* 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) Application of special accounting methods for presenting quarterly consolidated financial st atements: Yes
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, ( 3) Notes to Quarterly
Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated
Financial Statements” on page 9 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: 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 “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly
Consolidated Financial Statements, Changes in Accounting Policies” on page 9 for further information.

(4) Number of shares issued (common stock)1) Number of shares issued at the end of the period (including treasury shares)
As of Sep. 30, 2023:

17,663,800 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 Sep. 30, 2023:

113,631 shares

3) Average number of shares during the period
Nine months ended Sep. 30, 2023:

17,541,687 shares

Nine months ended Sep. 30, 2022:

17,473,203 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 future 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 4 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for quarterly financial results
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 the Third Quarter of 2023

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

2(2) Explanation of Financial Position

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

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income
For the Nine-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Changes in Significant Subsidiaries during the Period

9Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

9

Changes in Accounting Policies

9

Segment Information

10

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first nine months of 2023, the Japanese economy followed a gradual recovery trend, with economic
and social activity moving more rapidly towards normalization as the turmoil caused by the COVID crisis
subsided. However, the economic outlook remained uncertain due to such factors as the continuin g high costs of
raw materials and energy, the rising cost of living resulting from inflation, the ongoing depreciation of the yen, a
slowdown in overseas economies including the Chinese economy, and chronic labor shortages.
Under these circumstances, while each segment shows different results, the Group was able to respond
appropriately to changes through its portfolio of multiple businesses built up over time, resulting in both sales andprofits rising and outperforming the plan.
Net sales increased 14.1% year on year to 150,976 million yen (up 8.8% vs. plan). Operating profit increased
17.3% to 7,769 million yen (up 55.0% vs. plan), ordinary profit increased 14.2% to 7,690 million yen (up 57.9%
vs. plan), and profit attributable to owners of parent increased 21.2% to 4,707 million yen (up 52.9% vs. plan).
All activities of the Group continue to be guided by the group’s purpose 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 to makeeven greater contributions to society while growing rapidly.
Business segment performance was as follows.
Products Human Resources BusinessIn the Products Human Resources business, the slowdown in overseas economies led to stagnation in production
activities for manufacturers of semiconductors, electrical and electronic components, machinery, and otherproducts, especially in connection to smartphones, and orders followed a downward trend compared to theprevious year. However, both sales and profits performed strongly and exceeded the plan as the Company
leveraged its strength across multiple industries and increased its support to various sectors, including
automotive-related industries.
In planning for the expected growth of the semiconductor industry in the Kyushu region and elsewhere, theCompany 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 O zu-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.
As a result, sales were 74,130 million yen, up 15.1% year on year (up 7.2% vs. plan) and segment profit
decreased 14.9% to 2,728 million yen (up 7.7% vs. plan).
Services Human Resources BusinessProfits in the Service Human Resources Business fell short of the plan following a decline due to the completionof special demand projects in the first half of 2022 and prior investment in new business development, such a s
dispatch order management agency services. Profits also underperformed the plan due to a temporary fall in
logistics-related volume. On the other hand, in addition to steady progress in opening new bases in the logistics
sector, demand related to customer service and tourism followed a rising trend as the COVID pandemic subsided,
and we made steady progress in securing human resources and training them accordingly for the next fiscal year
and beyond.
In addition, as disclosed on July 27, 2023, in addition to a business alliance made with Yamato Holdings Co., Ltd.
on July 27, we successfully completed the acquisition of 51% of the outstan ding shares of Yamato Staff Supply
Co., Ltd on September 1. Going forward, we will leverage the strengths of both companies to achieve further
logistics-related growth, expand new business development such as dispatch order management agency services,and create still greater opportunities for more people to play an active role.

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

Sales were 35,580 million yen, up 13.6% year on year (up 1.7% vs. plan) and segment profit decreased 51.7% to425 million yen (down 20.4% vs. plan).
Real Estate BusinessThis business is operating with caution because real estate prices in Japan remain high. We successfully sold anddelivered land for business use at the optimum time. In addition, some properties that were scheduled to bedelivered in the fourth quarter were brought forward, and both sales and profit exceeded the plan by a wide
margin. Contracts for the remaining properties scheduled for delivery during the current fiscal year are almost
complete, and steady progress is being made towards achieving the full -year plan.
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 31,859 million yen, up 18.5% year on year (up 26.4% vs. plan), and segment profit was 3,841 million
yen, up 84.8% year on year (up 230.1% 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.
Currently, while taking a scrap-and-build approach to the mobile stores to improve efficiency, we are le veraging
the segment’s existing strengths in the corporate solutions sector and integrating its expertise in corporate
problem-solving with its mobile phone shops 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 5,856 million yen, down 9.6% year on year (down 1.0% vs. plan), and there was a segment loss of 19
million yen, compared with a loss of 53 million yen in the same period of 2022 (plan was a segment loss of 84
million yen).
Agricultural Park BusinessIn the Agricultural Park Business, the number of visitors to the park slowed due to poor weather in May, which isthe busiest 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. On the other hand,in light of the recent trend toward warmer winters, we have steadily been preparing measures to attract more
visitors during the winter season.
In addition, at the Comorebi Ibaraido Forest in Ibaraki Prefecture, environmentally friendly initiatives were
promoted by exploiting the strengths of its extensive outdoor facilities, including the examination of introducing
new solar power generation and battery storage facilities to reduce greenhouse gas emissions and electricity costs.
Sales were 3,549 million yen, up 8.7% year on year (up 0.4% vs. plan), and segment profit was 100 million yen,down 30.8% year on year (down 43.8% vs. plan).
(2) Explanation of Financial Position
AssetsTotal assets increased 32,256 million yen from the end of 2022 to 155,847 million yen at the end of the third
quarter of 2023. This was mainly due to increases of 4,395 million yen in notes and accounts receivable-trade,
3,768 million yen in real estate for sale, 3,585 million yen in real estate for sale in process and 5,424 million yen
in goodwill.
Liabilities
Total liabilities increased 28,185 million yen from the end of 2022 to 114,581 million yen. This was mainly due
to increases of 12,057 million yen in short-term borrowings and 11,979 million yen in long-term borrowings.

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

Net assets
Net assets increased 4,070 million yen from the end of 2022 to 41,266 million yen, mainly due to increases of
3,103 million yen in retained earnings and 821 million yen in non-controlling interests.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
World Holdings maintains its full-year consolidated forecasts that were announced in the “Consolidated Financial
Results for 2022” on February 14, 2023.

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Third quarter of 2023
(As of Sep. 30, 2023)

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

35,091

38,628Notes and accounts receivable-trade

18,80923,205833

729

Real estate for sale

6,506

10,275Work in process

113

268

Real estate for sale in process

43,09946,684

Other

3,811

14,348(6)(7)

108,257

134,132

6,032

6,085

4,059

9,484

192

304

4,252

9,788

Investment securities

1,229

1,408

Deferred tax assets

2,047

2,217

Leasehold and guarantee deposits

1,191

1,542

Merchandise and finished goods

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Other

932

1,023

Allowance for doubtful accounts

(352)

(350)

Total investments and other assets

5,049

5,841

Total non-current assets
Total assets

15,333

21,715

123,591

155,847

1,225

1,046

Liabilities
Current liabilities
Notes and accounts payable-trade
Accounts payable-real estate business

269

530

Short-term borrowings

30,79842,856

Accrued expenses

10,798

11,886

Advances received

1,167

1,340

Income taxes payable

2,580

1,608

Accrued consumption taxes

3,307

3,338

Provision for bonuses

225

1,279

Other

5,115

7,026

Total current liabilities

55,48970,912Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability

25,14937,129

198

185

3,297

3,935

Other

2,260

2,417

Total non-current liabilities

30,90543,66886,395

114,581

Non-current liabilities

Total liabilities

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

(Millions of yen)
Third quarter of 2023
(As of Sep. 30, 2023)

2022(As of Dec. 31, 2022)
Net assets
Shareholders’ equity
Share capital

1,314

1,332

Capital surplus

1,504

1,522

Retained earnings

32,86235,965

Treasury shares

(119)

(119)

Total shareholders’ equity

35,561

38,700

Valuation difference on available-for-sale securities

14

60

Foreign currency translation adjustment

40

76

Remeasurements of defined benefit plans

(207)

(170)

Total accumulated other comprehensive income

(153)

(33)

76

67

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests

1,710

2,532

Total net assets

37,19541,266

123,591

155,847

Total liabilities and net assets

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Nine-month Period)(Millions of yen)First nine months of 2023
(Jan. 1 – Sep. 30, 2023)

First nine months of 2022
(Jan. 1 – Sep. 30, 2022)
Net sales

132,346

150,976

Cost of sales

109,615

124,054

Gross profit

22,73026,922

Selling, general and administrative expenses

16,10919,152

Operating profit

6,621

7,769

8

51

Subsidy income
Income of support to investment in property andequipment
Other

120

22

3

-

173

118

Total non-operating income

306

191

158

222

Non-operating income
Interest and dividend income

Non-operating expenses
Interest expenses
Other

32

48

Total non-operating expenses

190

271

6,736

7,690

Loss on disaster-1

Total extraordinary losses-

1

Profit before income taxes

6,736

7,689

Income taxes

2,700

2,918

Profit

4,035

4,771

Ordinary profit
Extraordinary losses

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

7

151

63

3,883

4,707

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)First nine months of 2022
(Jan. 1 – Sep. 30, 2022)
Profit(Millions of yen)First nine months of 2023
(Jan. 1 – Sep. 30, 2023)

4,035

4,771

(9)

46

Foreign currency translation adjustment

63

49

Remeasurements of defined benefit plans, net of tax

(5)

37

Total other comprehensive income

48

133

4,084

4,904

3,913

4,827

171

77

Other comprehensive income
Valuation difference on available-for-sale securities

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

8

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

(3) 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
While not applicable to the transfer of a specified subsidiary, Toen Planning Co., Ltd., which became aconsolidated subsidiary in 2022, was removed from the scope of consolidation in the first quarter of 2023 because
this company was absorbed by World Residential Co., Ltd. on March 1, 2023 and subsequently dissolved.
While not applicable to the transfer of a specified subsidiary, Koresato Winery Co., Ltd. has been included in thescope of its consolidation from the second quarter of 2023 because the Company subscribed to a third-party
allotment of new shares in this company on April 1, 2023.
While not applicable to the transfer of a specified subsidiary, Nippon Gijutsu Center Co., Ltd. and its subsidiaryTechno Link Co., Ltd. have been included in the scope of consolidation from the second quarter of 2023
because the Company acquired shares in Nippon Gijutsu Center Co., Ltd. on May 22, 2023.
Yamato Staff Supply Co., Ltd. has been included in the scope of consolidation from the third quarter of 2023
because the Company acquired shares in this company on September 1, 2023.
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 application 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 when the use of estimated tax rates
produces a clearly irrational result.
Changes in Accounting Policies
Application of Accounting Standard for Fair Value Measurement
World Holdings has applied the Accounting Standard for Fair Value Measurement (Accounting Standards Boardof Japan (“ASBJ”) Statement No. 30, July 4, 2019) and others from the beginning of the first quarter of 2023, andhas applied the new accounting policies set forth by the Accounting Standard for Fair Value Measurement
prospectively in accordance with the transitional treatment in the paragra ph 19 of the Accounting Standard for
Fair Value Measurement and paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, July 4, 2019).
There is no effect of the application of this standard on the quarterly consolidated financial statements.

9WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

Segment Information
I. First nine months of 2022 (Jan. 1 – Sep. 30, 2022)
1. Information related to net sales and profit or loss for each reportable segment
Reportable segment
Products
Human
Resources
Business

Services
Human
Resources
Business

Real EstateBusiness

Information
andTelecommunications
Business

Agricultural
Park
Business

Total(Millions of yen)Amounts shownon quarterly
Adjustments
consolidated(Note 1)statement ofincome(Note 2)

Net sales
Sales toexternal
64,386
31,33026,8896,476
3,264
132,346
132,346
customers
Inter-segment
sales and
424
133
72
34
14
679
(679)
transfers
Total
64,81031,463
26,961
6,511
3,278
133,025(679)
132,346
Segment
3,206
880
2,078
53
145
6,365
256
6,621
profitNotes: 1. The 256 million yen adjustment to segment profit includes elimination for inter-segment transactions of -265
million yen, and 522 million yen in corporate expenses that cannot be allocated to any of the reportable segments.
Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of thereportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated statem ent ofincome.

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.

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2023

II. First nine months of 2023 (Jan. 1 – Sep. 30, 2023)
1. Information related to net sales and profit or loss for each reportable segment
Reportable segment
Products
Human
Resources
Business

Services
Human
Resources
Business

Real EstateBusiness

Information
andTelecommunications
Business

Agricultural
Park
Business

Total(Millions of yen)Amounts shownon quarterly
Adjustments
consolidated(Note 1)statement ofincome(Note 2)

Net sales
Sales toexternal
74,13035,58031,8595,856
3,549
150,976
150,976
customers
Inter-segment
sales and
477
135
12
49
17
692
(692)
transfers
Total
74,60735,71631,872
5,906
3,566
151,668(692)
150,976
Segment
2,728
425
3,841
(19)
100
7,075
694
7,769
profit (loss)
Notes: 1. The 694 million yen adjustment to segment profit includes elimination for inter-segment transactions of -3 million
yen, and 697 million yen in corporate expenses that cannot be allocated to any of the reportable segments.
Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of thereportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated statement ofincome.

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
Goodwill was booked in the “Services Human Resources Business” segment as Yamato Staff Supply Co.,
Ltd. became a consolidated subsidiary through the acquisition of 51% of its shares. The event caused theamount of goodwill to increase by 1,407 million yen during the first nine months of 2023.
Significant gain on bargain purchaseNot applicable.

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, for the convenience of readers
who prefer an English translation.

11