Consolidated Financial Results for the Third Quarter of 2018
(Nine Months Ended September 30, 2018)[Japanese GAAP]
November 5, 2018

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange, First Section
Stock code:
2429
URL: http://www.world-hd.co.jp
Representative: Eikichi Iida, Chairman and President
Contact:
Shigeru Nakano, Executive Director, Head of Corporate Planning Division
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
November 13, 2018
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
None
Holding of quarterly financial results meeting:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Nine Months of 2018 (January 1 to September 30, 2018)(1) Consolidated results of operations
Net sales
Million yen(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Operating profit%

Million yen%

Million yen

Nine months ended Sep. 30, 2018
101,906
21.7
4,383
29.0
Nine months ended Sep. 30, 201783,71820.2
3,399(47.8)
Note: Comprehensive income (millions of yen)
Nine months ended Sep. 30, 2018:
Nine months ended Sep. 30, 2017:
Net income per share
Nine months ended Sep. 30, 2018
Nine months ended Sep. 30, 2017%

Million yen

4,357
29.1
3,375 (47.7)
2,659 (up 9.3%)
2,434 (down 34.7%)

2,636
2,256

%

16.8
(38.7)

Diluted net income per share

Yen

Yen

156.73134.85154.17132.58(2) Consolidated financial position
Total assets

Net assets

Million yen

Net assets per share

Equity ratio

Million yen%

Yen

1,133.63
23.6
1,059.91
22.3
As of Dec. 31, 2017: 17,818

As of Sep. 30, 2018
80,88920,423As of Dec. 31, 201780,03919,140
Reference: Shareholders’ equity (millions of yen)
As of Sep. 30, 2018: 19,079

2. Dividends
1Q-endDividends per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

2017
0.00
2018
0.00
2018 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

-

82.70

82.70

82.80

82.80

3. Consolidated Forecast for 2018 (January 1 to December 31, 2018)
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
145,137 14.1
7,288
3.2
7,083
Note: Revisions to the most recently announced consolidated forecast: None%

Million yen

%

Yen

1.1

4,635

0.5

275.73

* Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation): None
Newly added: -Excluded: -(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, (3) Notes to Quarterly
Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated
Financial Statements” on page 10 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 Sep. 30, 2018:

16,951,300 shares

As of Dec. 31, 2017:16,932,500 shares

As of Dec. 31, 2017:

120,846 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2018:

120,929 shares

3) Average number of shares during the period
Nine months ended Sep. 30, 2018:16,823,262 shares

Nine months ended Sep. 30, 2017:

16,734,465 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
Forecasts of future performance in this document are based on assumption judged to be valid and information currently
available to the Company’s management. 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” on page 5 for forecast assumptions and notes of caution for usage.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

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 Nine-month Period

8

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

9(3) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Changes in Significant Subsidiaries during the Period

10

Application of Special Accounting Methods for Presenting
Quarterly Consolidated Financial Statements

10

Segment Information

11

1

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of 2018, concerns began to emerge about the sustainability of the ongoing economic
recovery in Japan that began in 2012. Corporate earnings are still solid. However, business sentiment in Japan has
clearly stopped improving due to worries about U.S.-China trade friction, rising prices of raw materials, damage
caused by a series of natural disasters and other reasons. In addition, the labor shortage in Japan, which is also
having a negative effect on the business climate, is becoming even more serious. The job openings -to-applicantsratio is remaining at the highest level in 44 years. As a result, the economic outlook continues to be unclear.
In the core Human Resources and Education Business, the entire industry is evolving to build a framework thatreflects the severe labor shortage and amendments to the Labor Contracts Act and the Worker Dispatching Act. As
the business climate changes, customers will become even more dependent on temporary staffing companies withsound internal systems for compliance and other activities.
The World Holdings Group continued to perform well in the first nine months of 2018 as sales and earnings werehigher than in the same period of 2017.
Sales continued to increase in the core Human Resources and Education Business. This business is a one -stop sourceof comprehensive services that cover many categories of the manufacturing sector. Furthermore, this business has ateam of well-trained people and a framework for moving these people to different assignments. By using thesestrengths, this business can quickly and accurately meet customers’ requirements. The result is steady sales growthby increasing our share of human resources and education services at each client company, raising rates for services,and renewing contracts. Additionally, due to the establishment of a sound employee training infrastructure, it ispossible to recruit new workers from people with a broad range of backgrounds. Even people with no experience canbe given the training needed to go on assignments. This capability means that this business can create jobs
consistently even in Japan’s very challenging environment for recruiting people. In 2018, this business is continuing
to make substantial investments in employee training in order to establish a new market position for World H oldings
as a provider of highly skilled engineers. The goal is to build a base for continued growth.
The Real Estate Business is diversifying operations to cover more business sectors and regions in order to lower its
reliance on real estate development activities, which generate sales for individual projects but are not a source ofsteady income. Building a powerful business framework that is not vulnerable to changes in real estate market
conditions is the objective. By conducting integrated marketing activities for various business sectors and regions,this business was able to buy and sell properties with flexibility and excellent timing. Furthermore, a big increase in
the number of properties sold in the renovation business, a source of steady income that the Real Estate Business isprioritizing, made a contribution to the growth of sales and earnings in this business.
In the Information and Telecommunications Business, where Japan’s mobile phone market has reached thesaturation point, activities have started to set the stage for growth starting in 2019. The main initiative is enlarging
the service area for corporate clients while retaining the strategy of establishing dominant positions in targetedmarket sectors.
In the first nine months of 2018, net sales increased 21.7% year on year to 101,906 million yen. Operating profit
increased 29.0% to 4,383 million yen, ordinary profit increased 29.1% to 4,357 million yen, and profit attributable toowners of parent increased 16.8% to 2,636 million yen.
Results by business segment are described below.
Factory Staffing Business
Sales and earnings in this segment continued to increase, making a big contribution to the growth of consolidated
results of operations. Logistics, machinery, and electrical and electronic products were the major areas of growth.
In the market for temporary staffing for logistics companies, where we have a dominant position, we used our
exclusive operational expertise to start new operations as planned at large logistics bases. In the mach inery andelectrical and electronic products sectors, we continued to add new business locations and place our people inassignments. This growth was the result of our policy of concentrating on business with clients that have advanced
technologies with excellent prospects for growth and sustainability as well as a sound understanding of the current

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

labor market in Japan (the value of people and importance of compliance with laws and regulations).
This business is building a human resources platform, an innovative initiative with the aim of creating anorganization of specialists with the same skills and knowledge of technologies. To accomplish this, there have been
large investments this year for growth of human resources development programs (career advanc ement, organizationbuilding and other activities) for everyone at the World Holdings Group, including managers. By creating a team ofhighly motivated people, we aim to maintain the stability of temporary staffing operations and build a base for thesteady growth of the value of our people and our organization.
Our Job Paper website for recruiting people uses an approach that reflects the viewpoints and needs of people
looking for jobs. This website also has a real-time chart function that utilizes artificial intelligence. Currently, morethan 60,000 people are registered on this website, making this a very stable platform for recruiting activities. We
also have a broad range of other recruiting operations that include activities to hire foreign workers. By consistently
meeting the requirements of customers and creating ideas for job creation that utilize the World Holdings theme of“two-way matching,” we continued to work on increasing our share of the human resources services purchased byour client companies.
As a result, sales were 35,880 million yen, up 22.3% year on year and segment profit increased 12.9% to 2,307
million yen.
Technology Staffing Business
Sales in this business continued to grow, mainly in the machinery, automobile, and information an dtelecommunication services sectors. Growth is backed by a stronger framework for training people resulting fromgrowth-oriented investments in the past and by the ability to increase the number of people on assignments due toour programs for training talented engineers.
Operations have started as planned at the Production Engineering Center, a production technology training facility
that we established in the first half of 2018. The center gives people practical training for processing, assemblingand designing various parts. Providing this training resulted in an increasing number of people on assignments atclient companies in the automobile and electromechanics sectors. In addition, we doubled the number of people
undergoing training at our facility for system engineers that includes classes for Java and Python programming,
LPIC and CCNA certification, and other subjects. The number of system engineers on assignments and sales in thiscategory increased as a result.
In addition, we continue to make steady progress with increasing the breadth of the Technology Staffing Business.
One example is services for construction engineers, a job category where demand in Japan is very strong. There wasalso steady growth of sales and earnings in the repair category, where we completed implementing structural reforms
in 2017.
Establishing a framework for training people has made it possible to hire more people with no experience.
Recruiting activities also include hiring foreign workers. As a result, we have a large a nd broad base of potential
new employees that contributes to the stability of our recruiting activities. To maintain the resources needed formore growth, we will make more investments in training programs for the people needed for the stability of ouroperations.
Sales were 11,004 million yen, up 21.9% year on year and segment profit decreased 3.0% to 931 million yen.
R&D Staffing Business
Sales increased but earnings were down in this business. Temporary placements of research personnel continued to
grow but the performance of clinical research outsourcing was impacted by structural reforms and the failure toreceive a large contract.
In the research personnel sector, we recruited talented people by using our own branding and enlarged and upgraded
our training programs for researcher employees. The resulting improvements in the technological knowledge,
character and productivity of these people allowed us to raise our rates for research staffing services. In addition, we
continued to expand joint research programs with university research institutes and increase synergies with other
World Holdings Group businesses while increasing the breadth of sales activities. All these initiatives are giving us asound base for growth in 2019 and afterward.
3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

At DOT WORLD Co., Ltd., a clinical research outsourcing company, there was a brief downturn in earnings caused
the failure to receive a large contract because the start of testing was postponed in the first half of 2018. This
company continued making expenditures for training people and building a sound organization in order to be areliable source of a comprehensive lineup of services for clinical development operations, which is this company’s
core strength.
Sales were 5,019 million yen, up 6.7% year on year and segment profit decreased 13.0% to 380 million yen.
Sales & Marketing Staffing BusinessThis business continued business model reforms to establish a powerful foundation for growth starting in 2019.
Building a new framework for performing outsourced work is one goal. Also, work is progressing on theestablishment of a data center for more accurately determining the wishes of job applicants and placing people in themost suitable assignments with more speed and efficiency.
Sales were 2,665 million yen, down 40.1% year on year and segment loss was 90 million yen, compared with asegment profit of 195 million yen in the first nine months of 2017.
Real Estate Business
The renovation business performed very well as expansion of operations to new areas resulted in b ig increases in thenumber of properties purchased and sold compared with the same period of 2017. Due to the steady growth ofrecurring-revenue businesses, we were able to pursue opportunities for earning profits at development projects,
which have high volatility. Overall, these activities produced growth in sales and earnings.
The performance of each category of this segment was as follows.
The real estate development business completed the sale of 123 condominium units and sold eight sites for business
use, resulting in property sales of 17,563 million yen. Sales from real estate brokerage and other activities totaled
1,806 million yen. Residential Musashigaoka, a condominium building that we have developed this year, is almost
sold out and we started closing procedures with buyers at the end of September.
In the renovation business, the number of residences sold increased by about 50% from one year earlier to 529
during the first nine months of 2018. Sales were 10,176 million yen.
The detached house business completed the sale of 184 custom-build houses and recorded sales of 4,510 million
yen.
In the prefabricated house business, sales from rentals, sales and other activities totaled 1,183 million yen.
Sales were 35,238 million yen, up 28.8% year on year and segment profit increased 104.0% to 2,446 million yen.
Information and Telecommunications BusinessJapan’s mobile telecommunications sector is undergoing a rapid realignment due to the maturity of this market. We
continued to pursue a strategy of establishing a dominant presence for our mobile phone shops in order to benefit as
one of the few remaining companies in this business. Sales increased as sales volume was higher primarily at shopsthat were added in 2017. However, earnings decreased because of up-front investments as recurring revenue at new
shops is still minimal. We will continue to use scrap-and-build activities and possibly M&A deals as well to upgrade
the shop network. We will also give shop personnel training so they can provide outstandi ng customer services andconsultations. By using these people to provide services that differentiate us from competitors, we plan to become
the mobile phone shop network that people choose first.
The cost-cutting solutions business, which serves small and midsize companies, continues to grow. In 2018,
Kagoshima prefecture was added to the service area of this business. Also, we increased the types of products andservices handled by call center operations with emphasis on activities that produce recurring r evenue. We aremaking progress with establishing core client categories for call centers other than mobile telecommunications inorder to create a base of operations that is not vulnerable to changes in the business climate of any particular market
sector.
Sales were 9,424 million yen, up 42.4% year on year and segment loss of 1 million yen, compared with a segment
profit of 86 million yen in the first nine months of 2017.
4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

OthersAt Advan Inc., which operates PC schools, the creative sector recorded solid sales and earnings. Advan continues tobenefit from substantial synergies with the Human Resources and Education Business. Advan used these synergies
primarily to expand training programs for system engineers in the Technology Staffing Business, making acontribution to improving the skills of people at all group companies.
Farm Co., Ltd. and its affiliate operate agricultural parks. In 2018, record -setting summer heat and other unfavorable
weather, natural disasters, and other events had a negative impact on park attendance. However, we are continuing to
update and improve facilities and take other actions for revitalizing these parks. The numerous actions taken since
Farm joined the World Holdings Group are slowly beginning to produce results. Most signific antly, the June 2018
opening of Sylvanian Park at Comorebi Ibaraido Forest in Ibaraki prefecture was an enormous success and was
instrumental to an increase of about 50% in visitors to this park compared with the same period of 2017.
Preparations are under way for more new attractions that are expected to further increase the number of visitors to
Farm’s agricultural parks in 2019 and afterward.
Sales were 2,674 million yen, up 20.1% year on year and there was a segment loss of 178 million yen, comparedwith a segment loss of 42 million yen in the first nine months of 2017.
(2) Explanation of Financial Position
AssetsTotal assets increased 849 million yen from the end of 2017 to 80,889 million yen at the end of the third quarter of
2018. This was mainly due to a decrease of 611 million yen in cash and deposits and an increase of 1,738 million
yen in real estate for sale in process.
Liabilities
Total liabilities decreased 433 million yen from the end of 2017 to 60,466 million yen. This was mainly due to anincrease of 1,064 million yen in accounts payable-real estate, decreases of 744 million yen in income taxes payable
and 573 million yen in long-term loans payable.
Net assets
Net assets increased 1,283 million yen from the end of 2017 to 20,423 million yen mainly due to a 1,242 million yen
increase in retained earnings.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The Company maintains its full-year consolidated forecast that was announced in the “Consolidated Financial
Results for 2017” on February 13, 2018.

5

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Third quarter of 2018
(As of Sep. 30, 2018)2017(As of Dec. 31, 2017)
AssetsCurrent assets
Cash and deposits

18,227

17,616

Notes and accounts receivable-trade

10,204

9,879

889

1,195

Real estate for sale

12,324

12,463Work in process

117

139

24,684

26,423

416

423

Other

3,499

3,421

Allowance for doubtful accounts

(48)

(49)

70,31571,513

4,707

5,031

1,552

1,103

368

301

1,921

1,404

Investment securities

821

598

Deferred tax assets

659

657

Lease and guarantee deposits

847

884

Other

845

875

Allowance for doubtful accounts

(77)

(77)

Total investments and other assets

3,094

2,938

9,724

9,375

80,03980,889Notes and accounts payable-trade

1,286

1,223

Accounts payable-real estate

1,187

2,252

Short-term loans payable

33,09432,921

Accrued expenses

5,827

5,321

Income taxes payable

1,509

765

Accrued consumption taxes

1,323

1,102

Provision for bonuses

72

638

Provision for directors’ bonuses

-

0

Other

4,874

5,013

Total current liabilities

49,17549,239

9,566

8,992

547

607

1,181

1,314

428

312

11,724

11,22660,89960,466Merchandise and finished goods

Real estate for sale in process
Deferred tax assets

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

Total non-current assets
Total assets
Liabilities
Current liabilities

Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

(Millions of yen)
Third quarter of 2018
(As of Sep. 30, 2018)2017(As of Dec. 31, 2017)
Net assets
Shareholders’ equity
Capital stock

768

780

Capital surplus

949

962

Retained earnings

16,16917,412

Treasury shares

(126)

(126)

Total shareholders’ equity

17,761

19,028Valuation difference on available-for-sale securities

36

26

Foreign currency translation adjustment

117Remeasurements of defined benefit plans

916

Accumulated other comprehensive income

57

50

Subscription rights to shares

Total accumulated other comprehensive income

133

126

Non-controlling interests

1,187

1,217

Total net assets

19,14020,42380,03980,889Total liabilities and net assets

7

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

(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 2018
(Jan. 1 – Sep. 30, 2018)

First nine months of 2017
(Jan. 1 – Sep. 30, 2017)
Net sales

83,718

101,906

Cost of sales

67,41282,743Gross profit

16,305

19,163

Selling, general and administrative expenses

12,906

14,779Operating profit

3,399

4,383

Subsidy income

16

23

Other

183

130

Total non-operating income

200

153

Interest expenses

163

145

Other

60

33

Non-operating income

Non-operating expenses

Total non-operating expenses

224

179

3,375

4,357

Gain on forgiveness of debts

330-

Total extraordinary income

330

-

-

11

-

16

-

17

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment loss
Loss on valuation of shares of subsidiaries andassociates
Loss on disaster-

44

Profit before income taxes

Total extraordinary losses

3,706

4,312

Income taxes

1,306

1,644

Profit

2,399

2,668

143

32

2,256

2,636

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

8

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)(Millions of yen)First nine months of 2018
(Jan. 1 – Sep. 30, 2018)

First nine months of 2017
(Jan. 1 – Sep. 30, 2017)
Profit

2,399

2,668

7

(9)

Foreign currency translation adjustment

2(6)Remeasurements of defined benefit plans, net of tax

23

6

Total other comprehensive income

34

(9)

2,434

2,659

2,290

2,629

143

29

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

9

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

(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
Not applicable.
The following information is provided even though these four actions were not a change in a significant subsidiary.
SAIHI JOHO SERVICE CO., LTD. became a consolidated subsidiary in the first quarter of 2018 following theacquisition of its shares by the Company on February 28, 2018.
NIKKEN SERVICE CO., LTD., which was a consolidated subsidiary in 2017, is no longer included in the
consolidated financial statements because this company was dissolved following its absorption and merger withconsolidated subsidiary NIKKEN TECHNO CO., LTD. on January 1, 2018.
WORLD STAFFING CO., LTD., which was a non-consolidated subsidiary in 2017, is included in the consolidated
financial statements starting in the first quarter of 2018 because of the increasing significance of this company.
Crowdeight co.,Ltd., which was a non-consolidated subsidiary in 2017, is included in the consolidated financial
statements starting in the second quarter of 2018 because of the increasing significance of this company.
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 effectaccounting with respect to profit before income taxes for the fiscal year in which the quarter under review falls, andmultiplying that rate by the profit before income taxes for the quarter under review. However, the Company uses
legally stipulated effective tax rates to calculate tax expenses for cases in which using estimated tax rates gives a
noticeably irrational result.

10

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

Segment Information
I. First nine months of 2017 (Jan. 1 – Sep. 30, 2017)
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
andMarketing Real Estate
Staffing
Staffing
Staffing
Telecommuni- Subtotal
Staffing BusinessBusiness Business Businesscations
Business
Business

Others(Note 1)

Total

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

Net sales
Sales toexternal
29,3429,028
4,703
4,450 27,349
6,618
81,491 2,226 83,718
83,718customers
Inter-segment
sales and
0
359
381
12
6
760
56
816
(816)
transfers
Total
29,342
9,387
4,703
4,831 27,361
6,625
82,252 2,282 84,535(816)
83,718Segment profit
2,044
959
437
195
1,198
86
4,922
(42)
4,879
(1,479)3,399(loss)
Notes: 1. “Others” represent businesses not included in reportable segments and include agricultural park business, outsourced
government agency business, education and training business and the operation of personal computer schools and otherservices.
2. The -1,479 million yen adjustment to segment profit includes elimination for inter-segment transactions of -0 million
yen, and -1,479 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.
3. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated st atement 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.

11

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2018

II. First nine months of 2018 (Jan. 1 – Sep. 30, 2018)
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
andMarketing Real Estate
Staffing
Staffing Staffing
Telecommuni- Subtotal
Staffing
Business
Business Business Businesscations
Business
Business

Others(Note 1)

Total

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

Net sales
Sales toexternal
35,88011,004 5,019
2,665 35,238
9,424 99,232
2,674 101,906
101,906
customers
Inter-segment
sales and
0
352
80
12
12
458
70
529
(529)
transfers
Total
35,881
11,356 5,019
2,746 35,250
9,436 99,691
2,745 102,436(529)
101,906
Segment profit
2,307
931
380
(90)
2,446
(1)
5,973
(178)
5,794 (1,411)
4,383(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 -1,411 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 38
million yen, and -1,450 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.
3. Segment profits (loss) are adjusted to be consistent with operating profit shown on the quarterly consolidated statementof 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.
This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), w hich has been prepared inaccordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an
English translation.

12