Business Report 2019
January 1

December 31, 2019

To Our Stakeholders

01 Interview with the President

Increasing the value and leveraging
the mobility of human resources tocreate new services
04 Consolidated Financial Results
05 Core Strategy for the Human Resources

and Education Business

07 Business Segment Overview
09 Topics:

Human Resources and Education Business

10 Corporate Data/Stock Information

Creating the “Ways We Live”

Securities Code: 2429

Interview with the President

Increasing the value
and leveraging the mobility ofhuman resources to create new services
Chairman and President Iida talks about the numerous activities for creating the “Ways We Live.” Oneexample is expanding the range of market sectors by utilizing manufacturing personnel in new ways.
Another example is the start of a human resources business specializing in the tourism industry, which has
a chronic labor shortage in part because of demand created by foreign tourists in Japan.

FY12/2019: Overview of Business Activities
In the Real Estate Business, consolidated sales and earnings
were down significantly because part of the sale planned forfiscal 2019 of large sites for business use were delayed tofiscal 2020. However, sales and earnings increased in the core
Human Resources and Education Business despite an
uncertain economic climate. Performance benefited from thesuccess of up-front investments for human resources fostering
programs in job categories that require advanced skills. The
Technology Staffing Business was the main source of growth.

Overview of the Human Resources and Education
Business
Economic sentiment in Japan continued to decline during
fiscal 2019 primarily in the manufacturing sector as exports
and capital expenditures decreased along with U.S.-China
trade friction and slowing global economic growth. In addition,
Japan’s labor market remained tight throughout the fiscal year.
Limitations on the supply of goods and services due to labor
shortages, the rising cost of labor and other factors areexerting downward pressure on economic growth in Japan.
In the Factory Staffing Business, there was lower production
at some client manufacturers in the smartphone,semiconductor and other fields. However, there was growth in

the core logistics field. Furthermore, this business took manyactions to increase the volume of business in market sectorsthat require expertise involving new technologies, such as 5G
mobile communications.
Recruiting people is difficult because of Japan’s labor
shortage. In the logistics field, we leveraged our innovative
expertise in order to use the consortium model for the receiptof large orders to supply people to partner companies during
the peak year-end season. Our human resources fostering
programs contribute to the growth and stability of teamdispatching and activities performed by teams at clientcompanies, as well as to a higher employee retention rate.
Approximately 1,000 people have participated in training
programs for specialized skills and for acquiring skills required
for team leader and management positions.
In the Technology Staffing Business, we reinforced activities
for supporting the career advancement of our engineers.
These measures contributed to growth in the volume ofbusiness with companies in the automobile, information
communication, and construction engineering fields as well as
an increase in the rates for our services. Our education
activities for people with little or no experience have been
particularly successful for supplying engineers. Manufacturing
technologies, 3D-CAD and other training programs haveresulted in strong placements of these engineers in theautomobile and construction engineering fields, and many01

Eikichi Iida
Chairman and President

Overview of the Real Estate Business
The consistently high prices of real estate in Japan pose risks
for the real estate operations of World Holdings. In fiscal 2019,the sales of this business were less than the initial forecast
due to a cautious stance for purchasing properties and ourdecision to sell only properties that produce sufficientearnings, even if no building was constructed on a site.
There are three large sites for business use for real estatedevelopment projects that will produce net sales of ¥10,004
million and operating profit of ¥1,519 million. Although theeffective transfers of ownership were largely completed during
fiscal 2019, the recognition of these transactions foraccounting purposes was delayed to fiscal 2020. As a result,
this business posted large declines in net sales and profits. I
regret the concerns this delay caused for shareholders andother investors.
Japan’s real estate price bubble is lasting longer than
expected. This business is continuing to move ahead with
development projects cautiously while focusing mainly on
renovations, conversions and other revitalization work. In
addition, we are building an infrastructure to start a real estate
finance business for the next cycle of the real estate market. In
the past, property was the only component of our real estatebusiness model. Now I want to broaden our real estate
activities in order to make this business even stronger.
Launching a real estate finance business is one step in thisdirection.
In Japan’s real estate industry, we are a midsize company
with deep roots in the areas where we operate. Our goal is tohave a dominant position in the small to midsize property
category, which is a market sector that does not interest large
real estate firms. We also plan to start a real estate
securitization and sale business, which is another market
sector where we will generally not compete with big
companies.

The Structure of the Real Estate Finance Business
More growth in value
Renovations/
UpgradesDecline in value
Investments to raise value/
Property conversions

Initial value

types of programming, infrastructure and other training
programs in the information and communication field.
We are taking these human resources fostering programs toan even higher level by expanding and upgrading theAcademy for Creating the Ways We Live, a training and skill
development scheme. The objective is to improve our ability torecruit skilled people who already have experience.
In the R&D Staffing Business, there was a growth in thenumber of research personnel supplied to clients in thepharmaceutical & biotechnology fields. In addition, the volume
of business with current clients in the chemical field increased.
In the clinical research outsourcing business, there werestructural reforms in order to increase the capacity utilization
rate. We also made progress with capturing orders for doctorinitiated clinical trials.
In the Sales & Marketing Staffing Business, preparations areunder way at the recently established JW Solution Co., Ltd.,for expanding operations beyond staffing services for the hotelindustry to encompass services for the entire tourism industry.

Use of portal topurchase property

Renovations/
UpgradesProperty
purchased
by REITUse of SPC orother scheme topurchase property

Age of property

Real estate portalWORLD ASSET MANAGEMENT CO., LTD.

Mirai Servicing Co, Ltd.

Ownership: World Holdings 90%,
The Bank of Fukuoka, Ltd., etc. 10%(

become a subsidiary ofWorld Holdings on
September 5, 2019)(

Investment advisory
services

SPC

World Holdings
Real Estate Business
Other real estate
acquisitions

)

Asset
management

Private REIT

Private fundActivities in FY12/2020 and Following Fiscal Years
Looking Ahead to the Next Generation of the Human
Resources BusinessI believe the human resources business is a business for themobility of people. Companies use this business to receive
more people when needed and return these people when they
are no longer necessary. Therefore, the role of our business is
to give companies this flexibility. The Japanese government isenacting measures to encourage companies to employ theirpeople as regular employees rather than in other ways. For
example, the government is promoting the principle of equal
work for equal pay. However, if we shift to a workforce with ahigh percentage of regular employees, we will have significant
difficulties providing our clients with the timely humanresources support they require.
Some people want the regular employment format andothers prefer the non-regular employment format that matches
their life styles. World Holdings has established an
infrastructure for the placement of people in a manner thatmatches their own needs and those of our clients while we
preserve the proper balance among employment formats. We
also work with our partner companies. By using this approach,I am determined to lower our overall expenses and create thenext generation of the human resources business.
For example, recruiting people in Japan is very difficult now
for us and all other companies. Our consortium scheme
enables us to use the capabilities of regional partnercompanies to improve our recruiting and human resource

FY12/2019 Consolidated Financial Summary
FY12/2018
Results(¥ million)

Human Resources andEducation Business
Real Estate BusinessInformation andTelecommunications Business
Other Businesses

Total

Segment sales

75,038Segment profit

4,964

Segment sales

52,011

Segment profit

4,589

Segment sales

12,376

Segment profit

3

Segment sales

3,467

Segment profit-270

Segment sales

142,894

Elimination or
corporate-1,917

Operating profit

7,370

02

FY12/2019

Profit margin(%)

Results(¥ million)

Profit margin(%)

77,774
6.6

5,179

6.7

42,082
8.8

1,460

3.5

12,344
0.0

10

0.1

4,118
—

132

3.2

136,319-2,052
5.2

4,730

3.5

FY12/2019 (initial forecasts)
YoY(%)

Initial forecasts(¥ million)+3.6

83,361

+4.3

5,617

-19.1

56,063

-68.2

2,753

-0.3

12,019+193.0

157

+18.8

4,008

—

45

-4.6

155,452—-2,525

-35.8

6,049

Profit margin(%)

vs. Forecasts-5,5876.7-438-13,9814.9-1,293
+325

1.3

-146
+110

1.1

+86
-19,132—

3.9-1,318

Interview with the President

Financial Highlights
mobility capabilities. We acquired this know-how through ouroperations in the logistics field and the provision of services
outsourced by the Fukushima prefectural government.
The establishment with JTB Corp. of JW Solution Co., Ltd.,is an example of our use of a consortium. This company
combines our human resources business expertise, including
consortiums, with the hospitality personnel fostering expertiseand tourism industry network of JTB. JW Solution plans tooperate a human resources solutions business nationwide inorder to solve problems of tourism companies. This company
is part of our strategic measures for creating a next-generation
human resources business. (For more information, see “CoreStrategy for the Human Resources and Education Business”
on page 5 and “Joint Investment in JW Solution by World
Holdings and JTB” on page 9.)

January 28, 2020 Announcement of theEstablishment of JW Solution

for our people. Accomplishing this will require focusing all ourenergy on maximizing the value of everyone in our workforce.
We need a structure that utilizes the capabilities of everyone
and does not overlook any of these strengths. We plan toestablish an education system that backs up this structure
along with a remuneration system that recognizes the resulting
increase in skills. I firmly believe that the creation of thisscheme is the mission of World Holdings.
We need to build a framework that requires fewer people aswell as raise the value of our people and fees we receive for
their assignments. Naturally, we will also give our people
compensation that reflects their mobility and performance. I
am convinced that the current business climate demands theestablishment of a new “creating the ways we live” by working
as a unified team with our client companies and partnercompanies. We must eliminate the gap between the amount ofwork done and compensation that still exists in manyindustries. Only by doing this can we achieve the broad
mobility of people and build a full-fledged human resources
platform.
I will use this thinking as the basis for activities that havesustained and consistent growth in a manner that reflects ourdistinctive strengths as our highest priority. I ask for the supportof all our stakeholders from a medium to long-term perspective
as we continue to make progress toward our goals.

FY12/2020 Consolidated Financial Forecasts
FY12/2019
On left, Eikichi‌Iida, Chairman and President of World Holdings
Shinji Honda, President and Representative Director of JW Solution
Hiroyuki Takahashi, President & CEO of JTB
Akihiro Hosono, President & CEO of JTB Communication Design

Steps to Build a Full-fledged Human Resources Platform
Raising the value of people in the tourism industry is theobjective of our collaboration with JTB. Services are a growing
part of the economy worldwide, including Japan.
Nevertheless, we receive lower rates for supplying people inservice positions than we do for factory workers. This makes itvery difficult to place our manufacturing people in service
positions, including in the tourism industry. As long as this gap
exists, we will be unable to achieve the true mobility of people
based on the human resources platform we want to build.
We need to determine how to raise the rates we can receive

Results(¥ million)

77,774

Segment sales

42,082

Real EstateBusiness

5,179

Segment profit

1,460

Segment sales
Information andTelecommunications
Business
Segment profit

12,344

Segment sales

4,118

Others

Total

10

Segment profit

132

Segment sales

136,319

Elimination or
corporate-2,052

Operating profit

4,730

03

¥136,319 million

Net sales:

Forecasts(¥ million)

Profitmargin (%)

88,3396.7

6,006

136,319

FY12/2018

FY12/2019¥4,730 million

YoY:

0.1

3.2

4,126

6.8

FY12/2016

FY12/2017

Operatingprofit:
7,407

35.8%

4,730

FY12/2016

FY12/2018

FY12/2019¥4,805 million

YoY:

FY12/2017

Ordinary
profit:

34.7%
8,338

7,357

7,007

FY12/2020 (forecasts)

4,805

+16.0

7.3

+182.6-13.8

220

2.1 +1,910.6

4,330

+5.1
3.5

+16.3

FY12/2016

FY12/2018

FY12/2019¥2,956 million

YoY:

FY12/2017

Profit attributable toowners of parent:

FY12/2020 (forecasts)

36.4%
5,601

4,192

4,612

4,650
2,956

+17.1
－

-2,6547,851

FY12/2020 (forecasts)

7,851

7,370

7,064

YoY
(%)

+33.9

159,682

3.5

159,682

94,334

7,306

10,644

153

4.6%

+13.6

56,369
3.5

YoY:

142,894

127,147

FY12/2020

Profitmargin (%)

Human
Segment sales
Resources andEducation
Segment profit
Business(FY12/2019)

4.9

+66.0

FY12/2016

FY12/2017

FY12/2018

FY12/2019

FY12/2020 (forecasts)

Consolidated Financial Results
Consolidated Balance Sheet (¥ million)

Consolidated Cash Flows (¥ million)

AssetsLiabilities and net assets

Current assets

Non-current assets

Current liabilities
Net assets

79,964
Cash and deposits
Notes and accounts
receivable - trade
Real estate for salein process

Point

87,352

79,964

18,825

Cash and deposits
Real estate for sales
Real estate for salein process

11,252
21,124

69,823
Property, plantand equipment
Intangible assets
Investments
and other assets

87,352

Non-current liabilities

26,234

Property, plantand equipment
Intangible assets
Investments
and other assets

3,342

10,14010,431

FY12/2018-end

FY12/2019-end

Cash flows
from financing
activities

18,824-2,597

16,513
16,373

46,136

52,79011,47910,61722,34723,944

FY12/2018-end

FY12/2019-end

76,920

5,439
1,359

Cash andcash equivalents
at beginning of
period

5,919
690
3,820

Total assets increased ¥7,388 million from the end of fiscal 2018 to ¥87,352 million at the end of fiscal 2019. Total
liabilities increased ¥5,791 million from the end of fiscal 2018 to ¥63,408 million. Advances received increased¥8,785 million as the recognition of sales and profits from three sites for business use was delayed to fiscal 2020.
Net assets increased ¥1,596 million from the end of fiscal 2018 to ¥23,944 million mainly due to a ¥1,575 million
increase in retained earnings.

Net sales

142,894

136,319

OperatingprofitOperatingprofitOrdinary
profit

7,370

7,357

4,730

Profitattributabletoowners ofparentCost of sales

4,650

SG&A
expenses

110,009

2,708-2,48916,513Point

Net cash was provided by operating activities mainly because of profit before income
taxes, an increase in advances received and income taxes refund. Net cash wasused in investing activities mainly for the purchase of property, plant and equipment
and loan advances. Net cash was used in financing activities mainly for net decreasein short-term borrowings, repayments of long-term borrowings and dividends paid.

Point

Non-operating
incomeOrdinary
profit347

4,805

Extraordinary
incomeProfit before
income taxes

180

ProfitProfitattributable attributabletotonon-controlling owners ofinterests
parent4,764

Non-operating
expenses

Extraordinary
losses

272

221

30
Total incometaxes

21,5801,777

FY12/2018

Cash flows
from investing
activities

FY12/2019

Consolidated Statement of Income (¥ million)
Net sales

Cash flows
from operating
activities

Cash andcash equivalents
at end of period

FY12/2019

04

2,956

The Human Resources and Education Business isthe core business of World Holdings. Net sales andprofits of this business increased due to steady
growth by developing a highly trained workforce,
while there were negative effects in some fields
because of changes in global market conditions.
The Real Estate Business purchased properties withcaution because prices of properties in Japan
continue to be at levels indicative of a price bubble.
In addition, the recognition of part of the net sales
and profitss of large sites for business use that had
been planned for fiscal 2019 was delayed to fiscal
2020. This delay reduced net sales by ¥10,004
million and operating profit by ¥1,519 million,
resulting in big declines in net sales and profits inthis business.

Core Strategy for the Human Resources and Education BusinessInitiatives for building a human resources platform and utilizing
people for a broader range of tasks
As Japan’s human resources industry continues to grow,business activities are dividing into two categories. One isbusinesses with priority on quantity. These companies
maintain a pool of people for flexible mobility. The other isbusinesses with priority on quality, which involves theprovision of services by people who have substantial added
value.
In August 2019, the World Holdings Group announced the
New Medium-term Management Plan 2021 – A Rolling Plan.
The plan made clear our commitment to quality based on areturn to the basics of the core Human Resources andEducation Business. Building a human resources platform bycreating an organization of highly trained people is a key
strategy of the plan. Two major initiatives of the plan wereincreasing interaction among business segments andenlarging the range of tasks where our people can use theircapabilities. By taking these actions, we earned a position as
Japan’s leading manufacturing dispatch business operator
that offers advanced training programs*.
In April 2019, consolidated subsidiary World Staffing Co.,
Ltd. and JTB Communication Design, Inc., a member of the
JTB Group, established JW Solution Co., Ltd. This is a new
step for adding more market sectors where we can use ourworkforce. The new company helps solve the problems ofcompanies in the tourism industry, where there is a severelabor shortage. In another move for the broader use of humanresources, consolidated subsidiary World Next Co., Ltd. hasstarted activities for the greatest possible utilization of thehuman resources pool of seniors that has been created by the
Human Resources and Education Business.
* Source: Japan‌
Marketing Research Organization, Inc. (February 2020)

Broader market coverage to maximize
opportunities for using our people

By leveraging expertise in the manufacturing sector and using our pool ofhuman resources in other business fields, we are creating new markets forthe “ways we live.”

Creating newmarkets forour services

Market: ¥3.5 trillion

Market: ¥6.5 trillion and more
Development

Manufacturing
field

Fieldsother thanmanufacturing

Making co-sourcing a reality

The factory staffing
leader in brandJob skills

Human skills

More interaction among businesses

More comprehensive contracts

More collaboration (joint ventures and use of the consortium model)

05

Start of human resources services forthe tourism industry
JW Solution plans to become a specialist in the market forhotel human resources services. To establish a sound base forthe start of these services and collaboration to support thisnew company, World Holdings and JTB, Japan’s largest
tourism company and one of the biggest in the world,increased the capital of JW Solution on February 14, 2020.
From a medium-term standpoint, the number of foreign
tourists visiting Japan is expected to increase significantly.
Hotels are currently moving in two directions. One is highpriced accommodations by using a highly trained staff toprovide outstanding hospitality services. The other is low
prices by using AI and other labor-saving investments to
reduce the size of the staff. In both categories, there is aserious shortage of labor for customer service, foodservice,
housekeeping and many other positions.
The World Holdings and JTB groups want to create newhuman resources services for the hotel industry and play arole in invigorating regional economies. To accomplish this,the two groups are combining their know-how and businessresources to give people “hospitality engineer” training, use
consortiums for the largest possible pool of human resources,
and using networking with partner companies to serve every
area of Japan.

Creating opportunities to use theexperience and knowledge of seniors
Based on the belief that self-reliance is directly linked torecovery, World Next has been providing employment
services following the 2011 earthquake and tsunami. The
company has performed a variety of revitalization support
activities primarily in Fukushima prefecture aimed at restoring
the self-reliance of local governments and people andbusinesses affected by this disaster. These activities havecreated jobs for more than 20,000 people.
In August 2019, World Next started preparations for a new
business that will fully utilize the senior human resources poolestablished by the Human Resources and Education

World Holdings Group and
JTB Group Collaboration

The goal of this collaboration is the provision of a new human resources service that combines
the expertise and business resources of the World Holdings and JTB groups. Encompassing theentire tourism industry, the services will use consortiums of human resources companies, training
programs to give people added value, and networking with companies in the tourism industry.

No.1 Powerful brand

Human resourcesbusiness expertise

Tourism industry
network
Consortium
formation expertise

Hospitality
workers

Platform forhuman resources solutions

Partners
Staffing agencies

Japanese

Companies
throughout Japan
Companies operatingin specific regions

Foreignnationals,
in Japan;outside Japan(

Fostering andeducationfunction

Use ofconsortiums
to recruit andsupply people
as needed+

Start-upcompanies

Licensing system

Companies
in specific fields

Training atpartnercompanies

housekeeping andleaning, foodservice

Hospitality personnel
fostering expertise)

Ability to use a consortium of
several human resources Strengthcompanies to maintainthe required workforce size

1

New job
assistancefunctionJob retention
assistancefunction

Strength2

Business. Japan has many unemployed but active seniors
with valuable skills and knowledge. However, companies lacka system for employing these people and an inadequate
understanding of their value. The new business aims to end
this mismatch between job opportunities and available people.
Companies in Japan require support involving the labor
shortage and enhancing the technical skills of employees.

06

Sales

Tourism companies

New client sales/
Existing client
channel sales/
Framework andbusiness
processes
improvements/
Cost reduction/
Service
improvements

Ability to improve the qualityof people and assist with new
assignments and job retention by
providing added-value services

Strength3• Japanese inns

Customer
services• Hotels• Theme parks• Meetings,
incentives,
conferencesand exhibitions
andother facilities

Entertainment

Operations

Housekeeping
and cleaning

Networking skill
with tourism companies

World Next has established a department dedicated tohelping seniors find jobs and identifying demand atcompanies that is not readily visible. The company is starting
this business with a service that matches seniors with jobs inthe food and logistics industries.

Business Segment Overview

Human Resources andEducation Business
Segment
sales¥77,774

YoY:

millionSegment
profit

3.6% U P¥5,179Segment sales
Factory Staffing
R&D Staffing

Sales composition

57.1%

75,038
9.0%

Sales & Marketing

77,774

20.3%

YoY:

million

4.3%

Segmentsales

UP¥42,082

Segment profit

Technology Staffing

4.7%

Real Estate Business

9.1%

Factory Staffing
R&D Staffing

4.8%

21.7%

66.0%

64.3%

FY12/2018

FY12/2019

4,964

million

19.1%

DOWN

Segment
profit¥1,460

Segment sales

Technology Staffing

5,179

11.3%

13.7%
34.0%

YoY:

million

68.2%

DOWN

Segment profit

Real estate development

Sales & Marketing

26.9%

63.8%

YoY:

Detached house

Renovation, others

4,589

52,011
Sales composition

0.5%

30.9%

51.7%

34.2%
14.9%

50.8%

42,082
47.2%

1,460

26.0%
26.8%

(2.0%)
FY12/2018
FY12/2019

FY12/2018

FY12/2019 Overview

FY12/2019

FY12/2018

FY12/2019

FY12/2019 Overview

Lower output of smartphones and other products at some client companies due to U.S.-China trade
friction negatively affected the Factory Staffing Business. But performance benefited from up-front
investments for human resources fostering programs. As a result, sales and profits increased with theTechnology Staffing Business primarily responsible for growth. The Sales & Marketing Staffing Businessalso contributed to this growth as it became profitable following the completion of structural reforms.
Sales were ¥77,774 million, up 3.6% year on year, and segment profit increased 4.3% to ¥5,179 million.
We will use our training program for turning inexperienced people into engineers and strengthen
training programs for upgrading the skills of experienced professionals. Our goal is to build a framework
for becoming the best partner for our clients in domains requiring advanced skills and knowledge.

This business retained a cautious stance for purchasing properties because of the risk created by theconsistently high prices of real estate in Japan. The delay to 2020 in the recognition of sales and profits
from three large sites for business use for real estate development projects also impacted theperformance of this business. The result was big declines in sales and profits.
The real estate development business sold 110 condominium units and 11 sites for business use, resulting
in sales of ¥11,263 million. Sales from real estate brokerage and other activities totaled ¥3,231 million. In therenovation business, 712 residences were sold, and sales were ¥14,513 million. The detached house businesscompleted the sale of 380 custom-build and other houses and recorded sales of ¥10,962 million. In the
prefabricated house business, sales from rental income, house sales and other activities totaled ¥2,113 million.
Sales were ¥42,082 million, down 19.1% year on year, and segment profit was ¥1,460 million, down
68.2% year on year.

Business Overview

Business Overview

A new perception of value for work

Communities where people can live with confidence at all time

With subcontracting and temporary placement capabilities, we are a one-stop provider of services
extending from upstream to downstream processes in the manufacturing sector.
Involvement with a diverse array of market sectors and products makes this business highly
resilient to almost any type of change in the economic environment and makes it possible tosupply services that support manufacturing in Japan.

This business serves many types of clients’ needs by operating real estate development, detachedhouse, renovation, prefabricated house and many other real estate businesses.
Diversification across many geographic areas and business sectors greatly reduces thevulnerability of this business to changes in the economic environment. With this solid foundation,
we can create residences and communities where people can live with confidence.

07

Information andTelecommunications Business
Segment
sales¥12,344

YoY:

million

0.3%

DOWN

Segment
profitSegment sales
12,376¥10

Other Businesses

YoY:

million193.0%

Segment
sales

UP

4,118

YoY:

millionSegment profit

18.8%

UP

Segment
profitSegment sales

132

4,118

million(FY12/2018 ¥-270 million)

Segment profit

3,467

12,344

Sales composition

Sales composition

9.0%

132

3.0%

10

3
-270
FY12/2018

FY12/2019

FY12/2018

FY12/2019

FY12/2018

FY12/2019 Overview

FY12/2019

FY12/2018

FY12/2019

FY12/2019 Overview

Major changes are taking place in Japan’s mobile phone shop sector as the roles of these shops change
because of the mandatory separation of mobile communication service charges and phone payments inaccordance with the amended laws, the longer phone replacement cycle, and other events. This business
continued to relocate and renovate its mobile phone stores in order to build a network of competitive andsuccessful stores. Activities also include investments in training for upgrading the knowledge andcustomer service skills of store personnel. In addition, improvements to the profit structure of the mobile
phone shop business resulted in higher earnings in 2019. To enable all group companies to benefit fromits sales capabilities, the corporate solutions business increased exchanges of employees with other
World Holdings Group companies. The result is even more synergies among group companies.
Sales were ¥12,344 million, down 0.3% year on year, and segment profit increased 193% to ¥10 million.

Farm Co., Ltd. and its affiliate operate agricultural parks. These companies joined the World Holdings Group in 2017
for the purpose of revitalizing the agricultural park business. Since then, there have been numerous initiatives, suchas restructuring personnel systems and giving people a new mindset regarding their jobs, in order to establish asound base for park operations. These activities were accompanied by carefully planned and executed marketing
programs to attract more people and by capital expenditures. Due to the success of these measures, the number ofpark visitors and revenue per visitor have increased and park operations have become profitable.
At Advan Inc., which mainly operates PC schools, the website production and other activities are performing welland there are activities to increase synergies with the Human Resources and Education Business. Advan is also
playing a significant role in the training of engineers in the Technology Staffing Business.
Sales were ¥4,118 million, up 18.8% year on year, and there was a segment profit of ¥132 million compared witha segment loss of ¥270 million one year earlier.

Business Overview

Business Overview

Creating new types of value involving communications

To create new“ways we live”

The operation of mobile phone stores is the primary activity in this business. Other activities
include solutions for corporate clients and a telemarketing business.
All of our mobile stores closely reflect the characteristics of their respective locations. Our
corporate solutions business and telemarketing business focus mostly on assisting with costcutting at small and midsize companies.

Companies in this business have taken on challenges by operating businesses that seek to use
activities outside the core businesses for creating new “ways we live.” For example, Farm Co., Ltd.
operates nine agricultural parks in Japan with a theme of harmony between nature, man andsociety. Advan Co., Ltd. operates PC and online schools, produces websites and creates a variety
of designs.

08

Topics: Human Resources and Education Business

1

2

Joint Investment in JW Solution
by World Holdings and JTB

On February 14, 2020, JW Solution Co., Ltd. (Head office: Minato-ku, Tokyo; President and Representative Director:
Shinji Honda), a subsidiary of World Holdings, increased its share capital, and World Holdings and JTB Corp. (Headoffice: Shinagawa-ku, Tokyo; President & CEO: Hiroyuki Takahashi) purchased part of shares and made joint
investments (purchased the World Holdings stake of 3,998 shares at cost of ¥199.9 million).
The larger investments by World Holdings and JTB will enable JW Solution to strengthen operations in order toprovide solutions across the entire tourism industry by operating a new type of human resources solutions businessthroughout Japan.

For partner human resources
service companies

For tourism companies
Services

Services• ‌Worker dispatching, recruiting and placing
services, mainly for people with outstanding
hospitality skills, and contracting services• ‌Services for adding value, including humanresources fostering and new assignment andemployee retention support• ‌Support for worker dispatch, recruitment andplacement of personnel of partner companies tocompanies in the tourism industry• ‌Provision of training programs using World
Holdings’ own hospitality method for fostering
human resources and increasing retention rates

Benefits

Benefits

people with the right skills at
1 Ability to supply
the right times and places1

In-house achievement of higher quality ofhuman resources

2

Ability to provide high-quality people

2Higher unit prices of human resources

3

Efficient business operations

Established joint venture withToho Titanium for a new typeof co-sourcing business

World Intec Co., Ltd. (Head office: Kitakyushu-shi, Fukuoka; Chairman andPresident: Eikichi Iida), a World Holdings Group company that operates ahuman resources business, and Toho Titanium Co., Ltd. (Head office:Chigasaki-shi, Kanagawa; President and Representative Director: Yoshihiro
Nishiyama), a manufacturer of materials based on titanium metals, will
establish a jointly owned company on April 1, 2020 called Tohoworld
Corporation that will be based in the city of Kitakyushu in Fukuoka prefecture.
Tohoworld will specialize in the human resources business for engineers andother skilled workers in the materials industry with the goal of raising the value
and long-term retention rate of client companies’ employees.
Establishing this company adds the basic materials industry to the fields ofthe manufacturing sector served by World Holdings. Assisting with passing ontechnologies and skills of older workers to younger people is one role of thiscompany. Other activities are ideas for the use of new people in the materials
industry and a human resources business for this industry, including forengineers with specialized materials expertise. By combining these services
with the outstanding quality and technologies of Japan’s materials
manufacturers, Tohoworld plans to help increase the number of people withvaluable skills and “create the ways we live for engineers and skilled workers.”
Tohoworld Corporation
ChairmanHiroshi Matsubara (Toho Titanium Co., Ltd.)

President

Hiroki Nagai (World Intec Co., Ltd.)

Directors

Katsuhiro Kuriyama (World Intec Co., Ltd.)
Kazuhisa Yamaguchi (World Intec Co., Ltd.)One more director to be selected

Auditor Masayuki Naito (World Intec Co., Ltd.)
Sharecapital¥100 million（

Ownership: ‌World Intec: 55%,
Toho Titanium: 45%）

Information in the following profile of JW Solution is after the increase in share capital on February 14, 2020.
Following this increase, JW Solution became a consolidated subsidiary of World Holdings.
Main businessComprehensive human resources services in the tourism industry.

Share capital¥400 million (after share capital increase)

Established

April 1, 2019

Fiscal year end

December 31

Majorshareholders

World Holdings: 50.0%
JTB Corp.: 37.5%
World Staffing Co., Ltd.: 10.0% (a wholly owned subsidiary of World Holdings)
JTB Communication Design, Inc.: 2.5%

09

The joint press
conference by World
Intec and Toho
Titanium to announce
the establishment ofTohoworld

February 20, 2020 at Press Club, Kitakyushu City Office
On left, ‌Hiroki Nagai, President of Tohoworld
Hiroshi Matsubara, Director and Executive Managing Officer of Toho Titanium
Eikichi Iida, Chairman and President of World Holdings
Katsuhiro Kuriyama, Director and Senior Executive Officer of World Intec
Kenji Kitahashi, Mayor of Kitakyushu-shi

Corporate Data/Stock Information

Corporate Data (As of December 31, 2019)
Name:

World Holdings Co., Ltd.

Established:

February 12, 1993

Share capital:¥787 million

Representative:

Eikichi Iida, Chairman and President

Number of
employees:

19,498 (consolidated)Fukuoka Head Office:
6F Fukuoka Asahi Building, 2-1-1 Hakata Ekimae, Hakata-ku, Fukuoka-shi,
Fukuoka Prefecture 812-0011
Phone: +81-92-474-0555 Fax: +81-92-474-0777

Stock Information (As of December 31, 2019)
Treasuryshares0.71%

Foreign entities, etc.
12.34%

Number of authorized shares: 54,000,000

Other
entities
34.33%

Number of shares outstanding: 16,961,600
Number of shareholders: 3,048

Individuals/
others28.34%

Shareholder
Composition

Financial
institutions
23.10%

Financial
instruments firms
1.18%

Major Shareholders:Number of shares held

Shareholding ratio

Mirai Research Institute, Limited

5,800,000

34.44%

Eikichi Iida

2,061,500

12.24%

Japan Trustee Services Bank, Ltd. (Trust Account)

1,871,400

11.11%BNP PARIBAS SECURITIES SERVICES LUXENBOURG/JASDEC/FIM/LUXEMBOURG
FUNDS/UCITS ASSETS
Standing Proxy: The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch

785,000

4.66%

The Kitakyushu Bank, Ltd.
Standing proxy: The Master Trust Bank of Japan, Ltd.

709,200

4.21%

Nanko Abe

500,000

2.96%

The Master Trust Bank of Japan, Ltd. (Trust Account)

323,400

1.92%

THE NISHI-NIPPON CITY BANK, LTD.

300,000

1.78%

Executives:

MUFG Bank, Ltd.

180,000

1.06%

Eikichi Iida, Chairman and President
Toru Iwasaki, Director
Yuji Takai, Director
Shinji Honda, Director
Shigeru Nakano, Director
Yoshihiko Mimasu, Director
Toshihiko Kanno, Director
Syuzou Ito, Director
Akira Soejima, Director
Koichi Hashida, Director (Outside Independent)
Shingo Igarashi, Director (Outside Independent)
Hideki Yamazaki, Director (Outside)
Kazuyuki Yamamura, Audit and Supervisory Board Member (Full-time)
Mitsuo Koga, Audit and Supervisory Board Member (Outside)
Tetsuo Kato, Audit and Supervisory Board Member (Outside)

JP MORGAN CHASE BANK 385151
Standing proxy: Mizuho Bank, Ltd., Settlement Sales Department

147,1140.87%

Address:

Kitakyushu Head Office:2F, 11-2 Otemachi, Kokurakita-ku, Kitakyushu-shi,
Fukuoka Prefecture 803-0814
Phone: +81-93-581-0540 Fax: +81-93-581-0542
Tokyo Head Office:
4F NBF COMODIO Shiodome, 2-14-1 Higashi-Shinbashi, Minato-ku,
Tokyo 105-0021
Phone: +81-3-3433-6005 Fax: +81-3-3433-6003

Businesses:

Businesses related to the entire group including formulation ofmanagement policies for the holding company and the group companies
and management of the group’s business operations (Human Resources
and Education Business, Real Estate Business, Information andTelecommunications Business)

Name of shareholders

Shareholding ratio is calculated after deducting treasury shares (121,000 shares).

Dividends
The basic policy for profit distributions is to
distribute profits in a manner that reflects
results of operations while retaining
sufficient earnings for future business
operations and for making business
operations stronger. For dividends, the goal
is to increase the dividend consistently
while using a consolidated payout ratio of
30% as the guideline.
10

Dividend per share (¥)

99.8

75.3

82.7

83.0

52.7

45.7
23.7
4.5
FY12/
2011

8.5

10.0

FY12/
2012

FY12/
2013

FY12/
2014

FY12/
2015

FY12/
2016

FY12/
2017

FY12/
2018

FY12/ FY12/2020
2019 (forecast)Memorandum for Shareholders

Major 36 Affiliates(32 Consolidated Subsidiaries, 4 Non-Consolidated Subsidiaries)(As of December 31, 2019)

Human Resources and Education BusinessBusiness year:

January 1 to December 31

Annual General Meeting of
Shareholders:March

Shareholder registry andspecial accountadministrator:

Mitsubishi UFJ Trust and Banking Corporation

Real Estate Business
Securities Agency Division, Mitsubishi UFJ Trust and Banking
Corporation 1-1 Nikko-cho, Fuchu-shi, Tokyo, Japan
Address:

Contact: 0120-232-711 (toll-free in Japan)
Mailing address: Securities Agency Division, Mitsubishi UFJ
Trust and Banking Corporation, PO Box 29, New Tokyo Post
Office, 137-8081

Expanding Business Fields

Public announcements:

Notices will be posted in electronic format on our internet
web page (https://world-hd.co.jp/). However, notices will be
published in the Nihon Keizai Shimbun when an electronic
notification is not possible for unavoidable reasons.

Information and Telecommunications Business

Other Businesses

The World Holdings Website
The IR Information
section of the World
Holdings website has
messages from senior
executives, information
about the New Mediumterm Management Plan
2021, an IR library,financial data andrecent news.

Front page of the website

IR Information

https://en.world-hd.co.jp/

https://en.world-hd.co.jp/ir/

Fukuoka Head Office:Kitakyushu Head Office:Tokyo Head Office:

6F Fukuoka Asahi Building, 2-1-1 Hakata Ekimae,
Hakata-ku, Fukuoka-shi, Fukuoka Prefecture 812-0011
Phone: +81-92-474-0555 Fax: +81-92-474-0777

2F, 11-2 Otemachi, Kokurakita-ku, Kitakyushu-shi,
Fukuoka Prefecture 803-0814
Phone: +81-93-581-0540 Fax: +81-93-581-0542

4F NBF COMODIO Shiodome, 2-14-1 Higashi-Shinbashi,
Minato-ku, Tokyo 105-0021
Phone: +81-3-3433-6005 Fax: +81-3-3433-6003