FY2011 Financial Results

February 21, 2012
World Intec Co., Ltd.
JASDAQ (2429)
1
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

Content
1. Summary of Financial Results for FY2011…............. 3
2. Segment Highlights………….................................. 9
3. FY2012 Plan….......................................................16

4. FY2012 Business Forecasts................................33
5. Medium-term Management Vision............................37

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved2

1. Summary of Financial Results for FY2011

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

Three Core Businesses

World Intec Co., Ltd.

Group

e-support, Inc.
・Call center business

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

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

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

Overseas ・・・・・・・・Dispatch of manufacturers

Nichimo Real Estate Co, Ltd.
・Contract selling business・Real estate consulting business

Mobile Service Co., Ltd.
・au shop business

R&D ・・・・・・・・Dispatch of researchers
Technology ・・・・・・・・ Dispatch of engineers
Factory ・・・・ Dispatch of manufacturers, Contractwork
CB ・・・・・・・・・ Dispatch of sales personnel
Construction ・・・ Dispatch of construction
managing engineers
Administrative contract ・・・・・ Personnel training
Overseas ・・・・・・・・・ Parts procurement
Repair ・・・・・・・・ Repair service

FY12/11
Consolidated sales ¥37,892 million

Best IT Business Co., Ltd.

Advan Co., Ltd.
Education business・PC school operations, educational
materials, software sales
GEOGRAPHIC INFORMATION OF
KYUSHU, INC.
・Map information sales ・Entrusted systemdevelopment ・Disabled persons’ employment
support, education
WORLD INTEC SHANGHAI CO., LTD.

・ Corporate business(non-consolidated)
・Comprehensive human resources service
・Education consulting

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

4Overview of FY2011 Financial Results: Increases in Sales and Profits
In a harsh macroenvironment such as the Great East Japan Earthquake, electricity shortage
and floods in Thailand, the World Intec’s business performance recovered strongly due toactive operations. The company strengthened its organizational base for growth in the next
fiscal year onwards.

Consolidated sales; ¥37,892 million (up 18.0% YoY)
Consolidated operating income; ¥588 million (up 70.4% YoY) EPS: ¥13.15(EPS growth rate: 267.2%)
Consolidated ordinary income; ¥678 million (up 39.1% YoY) BPS: ¥262.4
Consolidated net income; ¥214 million (up 268.1% YoY)
Sales (FY2010)¥32,109 million

Sales (FY2011)¥37,892 million

Operating income(FY2010)¥344 million

40,000Operating income(FY2011)¥588 million

1,300

30,000800

20,000300

10,000

-200
-700

0
OthersReal estate
Information
technology &telecommunications
Human resources

FY2010FY2011

1,828
52
8,046

2,994
1,514
9,176

-1,200
Head office costs

24,206FY2011-884-873

Others19

129

Real estate

-75
165

-160
213

1,205

1,165

Information technology& telecommunications

22,180FY2010

Human resources

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved5Consolidated Business Results
Showed steady recovery from June although the earthquake had an effect until the latter half of 2Q in May. Despite
electricity conservation in the summer and floods in Thailand in autumn, a rapid recovery in domestic supply chain
and effects of various policies resulted in strong demand for human resources. Information technology &telecommunications business and real estate business also showed strong performance as planned and profit
margin showed signs of recovery(Operating margin:%)(Sales: Million yen)

14,000FY12/07

FY12/06

FY12/08

FY12/09

FY12/1015.0%

FY12/1113.0%
12,00011.0%
10,000

9.0%
7.0%

8,000

5.0%
6,000

3.0%
1.0%

4,000

-1.0%
2,000
-3.0%
0

Sales

06/
1Q

2Q

3Q

4Q

07/
2Q
1Q

3Q

4Q

08/
1Q

2Q

3Q

4Q

09/
1Q

2Q

3Q

4Q

10/
2Q
1Q

3Q

4Q

11/
1Q

-5.0%
2Q

3Q

4Q

7,700 8,5258,673 9,950 10,5211,41 11,72 12,8312,44 13,10 12,2310,98 7,533 7,1946,959 7,406 7,6527,926 7,886 8,6449,806 8,920 9,283 9883

Operating margin 2.2% 3.8% 2.2% 2.9% -0.1% 3.7% 2.1% 5.4% 2.9% 5.0% 3.0% -2.6% -2.0% 2.8% 1.0% 3.6% 2.0% 1.7% -0.6% 1.2% 5.0% 0.3% -0.2% 0.9%
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

6

FY2011 Income Statement Summary (YoY)(Consolidated)

FY12/10 revised(in 3Q)

FY12/10(Million yen)
Net sales

5,783 （18.0％）

82 (0.2%)

344

510

588

243 （70.4％）

78 (15.2%)

1.1%

1.3％

1.5%

-

-

487

644

678

190 (39.1%)

34 (5.2%)

1.5%

1.7％

1.7%

-

-

58

155

214

155 (268.1%)

59 (38.0%)

0.2％

0.4％

0.5%

-

-

Ordinary income
marginNet income
Net income margin

R&D business
6%
Technology
business
19%

Change (%)

37,892

Ordinary income

FY12/10¥32,109
millionChange (%)

FY12/11 actual

37,810Operating margin

Information
technology &telecommunicati
ons business
25%

Vs. revised
forecast

32,109Operating income

Real estatebusinessOthers
0%
6%

YoY

Sales (YoY) Operating income (YoY)

Sales composition
Real estate Others
business
8%4%

Factory business44%

Information
Factory businesstechnology &41%
FY12/11telecommunicati
ons business ¥37,892 million
24%

R&D businessTechnology
7%business
16%

Factory businessTechnology
business

R&D businessInformation
technology &telecommunications
business

Real estatebusiness
Other businesses

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

15,722（+11.2％） 596（△15.3％）
5,982（+0.3％）327（△11.2％）

2,502（+20.2％）

241（+83.4％）

9,176（+14.0％）

213（+28.8％）

1,514（FY10 52） △75（FY10△160）
2,994（+63.7％）

157（+728.7％）

7

FY2011: BS/CF(Million yen)
Comments

End of Dec. ’10 End of Dec. ’11 Change %Current assets
Cash and deposits
Notes and accounts receivable
Real estate for sale in process

OthersFix ed as s et s
Tangible fixed assets
Intangible fixed assets
Investments, other assets

Tot al as s et s
Current liabilities
Notes and accounts payable

Short-term debt
Accrued expense
Accrued income tax
OthersFix ed liabilit ies
Long-term debt
Tot al net as s et s
Shareholder s ’ equity r atio %T otal liabilities and net as s ets

11,505
3,162
3,571
3,829
942
1,861
682
121
1,057
13,367
6,445
496
2,397
2,212
305
1,033
2,077

15,407
3,349
3,891
7,083
1,084
1,719
663
141
913
16,93911,112
553
6,168
2,560
253
1,578
1,052

33.9%
5.9%
9.0%
85.0% Development properties
15.1%
-7.6%
-2.8%
16.5%
-13.6%
26.7%
72.4%
11.5%
Real estate

157.3% purchase/construction funds
15.7%-17.0%
52.8%-49.4%
Repayment and transfer within

1,761

675

4,843
31.0%
13,367

4,961
28.9%
17,126-61.7% one year
2.4%
28.1%

(Million yen)
FY12/10

FY12/11

Operating cash flow

△ 2,863△ 2,225

Investing cash flow

△ 288

△ 112

△ 3,151△ 2,337

Financing cash flow

2,810

2,534

Cash & cash equivalents at
end of year

3,166

3,353

Free cash flow

【Operating cash flow】 △¥2,225mn
Income before income taxes¥686mnIncrease in real estate for sale △¥3,206mn【Investing cash flow】△¥112mn

Acquisition of tangible fixed assets△¥84mn
Acquisition/sale of investment securities
¥50mn

Loan

△¥91mn【Financing cash flow】¥2,534mn

Increase of short-term debt ¥3,357mn
Decrease of long-term debt △¥672mn
Dividends paid △¥73mn

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved8

2. Segment Highlights

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

9

FY2011 Business Segment Report (1)Human resources education business
Factory business

Sales upProfitdown

Investments in manufacturing business (cars, environmental energy, etc.) worked out and demand for human resources associatedwith recovery in orders for machinery increased steadily. Prior investment in contract for work with major companies and priorinvestment related to recruitment increased resulting in 15.3% decline in profit YoY.

Technology business

Sales upProfitdown

Sales increased due to strengthening of operations linked with the Factory business and a new consolidated subsidiary in addition to rise indemand for engineers in information and telecommunications and auto-related fields. However, prior investment in a new subsidiary and upfront expenditures including recruiting costs resulted in 11.2% decline YoY (contributes to profit in fiscal 2012)

R&D business

Sales upProfit up

Substantial increases in sales and profit YoY as orders in the field of general worker dispatching increased steadily.

Sales

Segment income

30,0001,500

25,00020,0001,000

15,00010,000

500

5,000
0
R&D
Technology
Factory

FY2010FY2011

2,082
5,964
14,134

2,502
5,982
15,7220

FY2010FY2011

131
369
704

241
327
596

R&D
Technology
Factory

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved＊Head office cost excluded10

FY2011 Business Segment Report (2)Information technology & telecommunications business

Sales upProfit up

Raised earnings through restructuring of corporate business and cost-cutting and at the same time, attracted demand forsmartphones by making investments in new store openings resulting in increases in sales (up 14.0% YoY) and profit (up28.8% YoY).
Sales up

Reduced loss

Real estate business
Demand for condominiums in the Tokyo are remained strong. Sold 3 properties and purchased 4 properties and at the sametime began sales of Residential Series “Ohanajaya” and “Kanamachi.” Reduced loss by holding down initial sales promotion
cost. Profitability from this fiscal year will contribute to profit.
Sales upProfit up

Other businesses
In the Administration contract business, “Gambaro Fukushima! “Kizuna” Zukuri Oen Jigyo” in Kyushu and Fukushima
Prefecture made good progress. Sales personnel dispatch services and Geographic Information of Kyushu’s geographic
information system and education and employment support for disabled people and Advan’s PC software operations anduser education went well. As a result, the company marked drastic increases in sales (up 63.7% YoY) and profit (up 728.7%
YoY) in other businesses as a whole.
Sales

15,000400

10,000

200

5,000

0

0
OthersReal estate
Information
technology &telecommunication

FY2010FY2011

1,828
52
8,046

2,994
1,416
9,176

-200
OthersReal estate
Information
technology &telecommunication

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

Segment income

FY2010FY2011

19
-160
165

157
-75
213
＊Head office cost excluded

11

Business Summary by Segment(Million yen)

FY12/10

Human resources education business

1,587

11.2%

704

596

△108

△15.3%

4.9％

3.7％

−

−

5,964

5,982

18

0.3％

369

327

△41

△11.2％

6.1％

5.4％

−

−

2,082

2,502

420

20.2％

131

241

109

83.4％

6.3％

9.6％

−

−

8,046

9,176

1,129

14.0％

165

213

47

28.8％

2.0％

2.3％

−

−

52

1,514

1,462

2.799.7％

-160

-75

85

−

--307.8％

-4.9％

−

−

1,828

2,994

1,165

63.7％

19

157

138

728.7％

1.0％

5.2％

−

−

32,10937,892

5,783

18.0％

Elimination or corporate

-884

-873

11

-

Operating income

344

588

243

70.4％

1.0％

1.5％

−

−

Segment income

Net sales
Segment income
Profit margin
Net sales
R&D business

Segment income
Profit margin
Net sales

Information technology &telecommunications
business

Segment income
Profit margin
Net sales

Real estate business

Segment income
Profit margin
Net sales

Other businesses(FY12/10=various services)

Segment income
Profit margin

Total

Pct. change

15,722

Profit margin

Technology businessChange14,134

Net sales
Factory business

YoY

FY12/11Net sales

Operating margin

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

123. FY2012 Plan

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

13

FY2012 Group Management Target
World Intec Group aims for sales of ¥50 billion!!
Consolidated sales; ¥49.6 billion (up 30.9% YoY)
Consolidated operating income; ¥1.36 billion (up 131.6% YoY)

ＥＰＳ：¥39.58(EPS growth rate: 201.0%)
Human resources education business: Sales ¥29.7 billion (up 22.4% YoY)
Information technology & telecommunications business: Sales ¥8.9 billion (down 2.5% YoY)

Real estate business: Sales ¥7.7 billion (up 413% YoY)
Sales (FY2012)¥49,611 million

60,00050,000

Sales (FY2011)¥37,892 million

40,00030,00020,00010,0000
OthersReal estate
Information
technology &telecommunications
Human resources

FY2011FY2012 (est.)

2,968
1,514
9,176

3,235
7,769
8,950

24,231

29,656

2,500
2,000
1,500
1,000
500
0
-500
-1,000
Head office cost
OthersReal estate
Information technology& telecommunications
Human resources
education

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

Operating income(FY2011)¥588 million

Operating income(FY2012)¥1,361 million

FY2011FY2012 (est.)

-873

-988

157
-75
213

204
164
270

1,165

1,710

14

Summary of FY2012 Plan (1) Human Resources Education Business
Human resources education business

Factory business

Up 28.0% (YoY sales)

Expand market share using credence and compliance structure. Profitable investment in contract for work.
Use World Intec’s knowhow at logistics centers for direct marketing and e-commerce which are growing areas. Obtainlarge orders.

Technology business

Up 4.6% (YoY sales)

Increase sales by strengthening operations linked with the Factory business. Also strengthen SI Department
developing software.

R&D business

Up 29.9% (YoY sales)

Continue to aim for drastic increases in sales and profit as in FY12/11 by strengthening CRO (Clinical Research
Outsourcing) and general worker dispatching
Sales

Segment income

2,00 0

Profit margin 5.7%

30,00 01,50 0
Profit margin 4.8%

20,00 01,00 010,00 00
R&D
Tec hnology
Factory500
FY201 1

FY20 122,5 02
6,0 07
15 ,722

3 ,250
6 ,286
2 0,120

0
R&D
Tech nology
Factory

FY2 011

FY20 12

2 41
3 27
5 96

2 78
4 05
1,026
＊Head office cost excluded

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15

Summary of FY2012 Plan (2)Information Technology & Telecommunications/Real Estate/Others
Information technology & telecommunications business Down 2.5% (YoY sales)
Demand for smartphones will continue to expand but remains almost the same as in the previous fiscal year assuming thebacklash of iPhones in the previous fiscal year.

Real estate business

Up 440% (YoY sales)

Followed by the delivery of Residential Series “Ohanajaya” and “Kanamachi,” plans sales of “Nakanobu” and “Monzennakacho.”
Becoming Suncity sponsor (scheduled) may incur purchase cost in advance but will turn profitable contributing to operating income.

Other businesses

Up 8% (YoY sales)

The Administration contract business will carry on with the “Gambaro Fukushima! “Kizuna” Zukuri Oen Jigyo” in Fukushima
Prefecture. Operations of other geographic information system, Geographic Information of Kyushu’s geographic information system
and Advan will also be expanded.

Sales

20,000700

15,000500

10,000

300

5,000

100

0

-100

OthersReal estate
Information
technology &telecommunications

FY2011FY2012

2,994
1,514
9,176

3,235
7,769
8,950

Segment income
Profit margin 3.2%
Profit margin 2.1%

0

OthersReal estate
Information
technology &telecommunications

FY2011FY2012 (est.)

157
-75
213

204
164
270

＊Head office cost excluded
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16

Human Resources Education Business: Industry Map, Market Size
and World Intec’s Position
Manufacturing market

General worker dispatching

Specialized worker dispatching・Adeco・Manpower Japan・Pasona・Temp

・Meitec・Altech・VSN・Trust Tech

・R&D

・Dispatch of・Technology

sales personnel

No. of workers
222,000

Market size ¥1.1 trillion
261,000 people

R&D & technology expansion

Market size ¥1.5 trillion
144,000 people

Increase profit margin

Market size ¥4.7 trillion
554,000 people

Capable of offering consistent temp and contract services
extending from R&D engineers, design, manufacturing, logistics,
repair and after-sales services (our strengths)

Target operating margin of 5 to 7%

Light work・short-term
dispatching
・FULLCAST HOLDINGS・Backs Group

Dispatch of
manufacturers・contract

work
・Nikken Sogyo
・Nisso・UT Holdings
・Outsourcing

・Factory

Expand market share from Kyushu to East Japan
Increase in sales (share)※Market sizes and the number of workers are based on materials announced by The Ministry of Health, Labor and Welfare in Jan. 2012
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

Human Resources Education Business: Factory Business
FY2012 plan：

Sales ¥20,112 million
Operating income ¥1,026 million (5.1%)＋28％YoY ↗
＋72％ YoY ↗

≪Strengths≫
Financial strength• Sound financial base capable of making prior investment

A following wind

• Trusted by regulatory agency with certified contract
standards

Compliance capability
Recruiting skills

・Proposed amendment on
Dispatch Law with deleted ban on
dispatching temps tomanufacturing firms•Nationwide recruitment network

Human resources
development capability• Training by professional staff experiences in production
activities

Customer base

• Reduce the risk of environmental changes in transactions
with companies from different industries

・Reduced competitors

Million yen

Manufacturing

Distribution
Direct marketing･
e-Commerce

Rising market share in Eastern Japan

Expand businesses
Attract demand for major
distribution centers

Loading

Sorting

Shipping &packaging

Picking

Inventory
registration

Valuation &inspection

Assembling

No end to deliveries of products to consumers↓

Permanent business！

Manufacturing

Kyushu Chugoku

KansaiTokai

Kanto Tohoku■2010 total ■2011 total

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18

Human Resources Education Business:
FY2012 plan：

Technology Business

Sales ¥6,286 million
Operating income ¥405 million (6.5%)＋5.1％ YoY ↗
＋23.8％ YoY ↗

Strengthen recruitment of senior engineers with high technical skills!!
Collaboration with Factorybusiness※ Competitors・・・Meitec, Altech

Field of machinery

Electricity/electronics fields

IT field

Production technological field● Case design● Digital & analog circuitdesign●System engineer●Facility design & remodeling● High-frequency circuitdesign● Programmer● Mechanism design● Mold design● Various analysis,
experiments &evaluations● CAD operator● CPU peripheral circuitdesign● Power circuit design● LSI design●Test & evaluation●Operation &maintenance●Network construction● Various experiments,
evaluations & analysis

Expand the specialized worker
dispatch domain in the manufacturing
field through synergy of linkage with
Factory business●Layout design●Establishment &improvement of manufacturing
line●Adjustments & maintenanceof manufacturing line
●FE (Field engineering)

Sales ratio
Production skill : Design development

２ ： １
↓
１ ： １
Auto industry (body, drive, engine, electrical part, interior part, etc.)
Home appliance industry (TV, digital camera, car navigation, combined machine, etc.)
Technology
div. businessfieldsTelecom industry (mobile terminal, PC, game console, etc.)

下振れを予測し、保守的に見込む

Semiconductor industry (ASIC, LSI, IC, semiconductor manufacturing equipment, etc.) Forecast conservatively assuming a downturn
Plant industry (various plans, automated machinery, machine tool, etc.)

IT industry (Web-related system, control system, production management system, etc.)

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

Strengthen SI to strengthen profitability
ＳＩを強化し、収益性の強化を図る

19

Human Resources Education Business:
FY2012 plan：

R&D Business

Sales ¥3,250 million
Operating income ¥278 million (8.6%)＋29.9％ YoY ↗
＋15.4％ YoY ↗

We have a strong base and enough strengths in the existing specialized dispatch domain→ Expand general worker dispatch domain even more
(Assumed market: over ¥40 billion)《Competitors》
・Advantage Science (former Hitec)
・WDB Eureka, etc.

General dispatch
Existing domain
Contract clinicalpractices

Expanding efforts(Assumed market: over ¥20 billion)《Competitors》
・WDB
・Temp Staff, etc.

Increase share
Specialized dispatch
Existing domain

Specialized dispatch
Existing domain

Enter a new domain with equal skills in general dispatching→Strengthen recruitment with a view to transfer to specialized temporary staffs (expansion of recruitment)
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved20Human Resources Education Business: Administrative Contract Business※Classified as “Other businesses” in the disclosure segment

Fukushima Prefecture“Gambaro Fukushima! “Kizuna”
Zukuri Oen Jigyo”

Purpose

PurposeEstablish a support system
Support for transferring to temporary housing

Establish a support system
Determine a living place
Securing of living expenses in temporary
housing
Help put people’s lives backProvide support to improve the convenienceof life and living environment①Safety net for earthquakes
People who receive employment
adjustment subsidy(Unemployed and receives leaveallowances)②Safety net for earthquakes
Recipients of employment insurance

Soma

Employed by a job placement firm and engage invarious support services in shelters & temporary
housing

Target group
Fukushima
Pref.

Job
assistanceTemporary
housing

Shelter

Supported by a separatebusiness using a fundproject
・Hold travelingconsultations
・Industrial recovery
business (aim for recoveryof employment throughindustrial recovery
business)①Safety net for earthquakes
Other than ① and ②

Iwaki

NPO

Employment creation to secure living expenses
Creation of a meaningful life
Provide support for people who hope for recovery

Support using knowhow related to the entire support
Support using support-related institutional network

Major businesses of people employed for the “Kizuna” Zukuri Oen Jigyo (E.g.)○Aid delivery at shelters○Preparation of food, serving, cleaning up○Provision of livelihood support to vulnerable
people (assisting outpatients, offering shopping
services)

Job opening
Name ofregionPlanned no.
ofemployees

No. ofrequests forassistance

Fukushima
Pref.

400

Soma

○Confirmation of safety of residents○Transmission of municipal information & collaboration・coordination
with municipalities○Community space caretaker○Provision of livelihood support to vulnerable people

No. of recruits
Progress rate (%)

Total

RequestsforassistanceWorld Intec

Total

14

786

601

14

615

154%

494

4

498

505

4

509

204%

108

669

6

675

494

6

500

143%

267

1,935

1,959

1,600

24

1,624

162%

Requestsforassistance

World
Intec

119

772

250

40

Iwaki

350

Total of 3
regions

1,000

24

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

The deadline for the administration budget
is at the end of Mar.
Posted sales of about ¥515 million between
Jun. and Dec. last year
Plans sales of about ¥380 million between
Jan. and Mar. this year
Also, now working to continue to obtain thebudget for the next fiscal year21

Human Resources Education Business: Education Business & Other:
Employment Promotion Businesses for Disabled People＜ Education Business ＞
In cooperation with Best Denki and Bic Camera, we opened schools in stores
11 schools in Kita-Kyushu, Fukuoka, Saga, Kumamoto, Hiroshima and Yamaguchi
We arrange 32 fund training courses (job-seeker support system) at 18 schools

Your partner to move up

Advan school

School operations
Software sales
Web production

Can learn PC usage technique in a wide range from beginner’s to specialized courses
Signed a platinum partnership agreement with Adobe. Can sell at a special rate forstudents and also offers online together with educational materials

Available in a wide range extending from the preparation of company web pages to SEO
measures＜Employment Promotion Businesses for Disabled People＞
We will aim to be a company that can contribute to the“symbiotic society” between the earth and human,society and human and humans
GEOGRAPHIC INFORMATION OF KYUSHU, INC.

It is an operating company using a third-sector method in cooperation with thegovernment and private sector which realized an office as a future model where
disabled people can work without being worried about handicaps

GEOGRAPHIC INFORMATION OF KYUSHU

Map information system development
General system development

SE
dispatching

Local
government

Contracted
business

Map information
systemdevelopment

Privatecompany

General systemdevelopment
Contracted
businessJobplacement

Privatecompany

Digitization of drawings & documents
Contracted
business

IT education for the disabled

Privatecompany

CooperationDigitization ofdrawings &documents

IT education forthe disabled

Use of subsidy system
Thecountry

Small workshop
Cooperation

Work transfer support
officeCooperation

Employment
cooperation

Fukuoka Job support center for thedisabled

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Hellowork

22

Information Technology & Telecommunications Businesse-support, Inc. (Call center business) Mobile Service Co., Ltd. (KDDI product sales business) Best IT Business Co., Ltd. (Corporate business)
Online Co., Ltd. (Corporate business) Network Solution Co., Ltd. (Softbank, willcom, e-mobile)

Businesses
事業

事業
内容

Descriptions

Corporatebusiness
法人事業①法人向け携帯電話販売①Mobilephone sales for corporations②法人向け固定回線ｻｰﾋﾞｽ販売②Fixed-line
service sales for corporations③Integrated
product
sales for corporations③法人向け総合商品販売(copier, others)（コピー機、その他）

Clients
取引先

SHARP (copier)
シャープ㈱（コピー機）
Softbank
Telecom (line)
ソフトバンクテレコム㈱（回線）Softbank mobile (mobile phone)
ソフトバンクモバイル㈱（携帯）Best Denki㈱ベスト電器Call
center business
ｺｰﾙｾﾝﾀｰ事業①Communication
①通信回線
line
ﾃﾚﾏｰｹﾃｨﾝｸﾞ
Telemarketing②Business②業務委託
outsourcing

NTT西日本、東日本
NTT West & East
HIBIT（ISP）
HIBIT (ISP)
KDDI
KDDI, others
その他

Shop
business
SHOP事業

直営店舗による
Developmentof mobile phone
products
for individuals by
個人向け携帯電話
directly operated stores
商品展開

KDDI
(au)
KDDI㈱（au）
Softbank
mobileｿﾌﾄﾊﾞﾝｸﾓﾊﾞｲﾙ
WILLCOM
WILLCOM
E-mobile
E-ﾓﾊﾞｲﾙ

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World

Agencybusiness
代理店事業

Mobilephone
携帯電話
agency
代理店

Agency for
法人商材
corporate
代理店
products

Sales company sellingcompany’s
products in
弊社取扱商品全般
general
販売会社（数十社）(a dozen companies)

23

Information Technology & Telecommunications Business
FY2012 plan:

Sales ¥8,950 million
Operating income ¥270 million (3.0%)▲2.5％ YoY ↘
＋26.7％ YoY ↗

Real estate business Profit margin of 10%-15%

High-profit margin but a sellout model
Human resources education business Profit margin of 5%-7%
Contract period short; a maximum of 3 years
Information technology & telecommunications business Profit margin of 3%-5%

Sales

Operating income
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0

9500
9000
8500
8000
7500
7000
6500
6000
5500
5000
FY12/10

FY12/11

Sales were higher-than-expected when iPhone went onsale in the previous fiscal year but the company
forecasts sales conservatively assuming the backlash inthis fiscal year.

FY12/12 (est.)

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

Real Estate Business: Macroenvironment 〜Condominium Market in Tokyo Area in 2010 Onwards〜
・The number of units supplied in 2011 was 44,499 units. The supply remained almost the same as last year (44,535 units) despite being affectedby the Great East Japan Earthquake.
・Between October and December 2011, supplied 16,209 units, 9.6% higher than last year and the contract rate was high marking between 74.1%
and 76.9%.
・The average price in 2011 was ¥45.78 million (down 2.9% YoY).
Contract
契約率

Units
供給戸数

rate

supplied

Maintain highlevel

14,00012,000

100%

90%
84.8%
83.9%
82.8%
80.4%
79.9%
79.7%
79.6%78.9%
79.2%79.2%
78.8%
78.6%
78.2%
77.7%
77.0%
76.2%
76.1%
80%
75.2%
74.1%
73.3%
70.3%70.7%
69.9%
69.2%
70%

10,000
8,017
8,000

7,388

6,000
3,779

3,685
2,777

4,820
4,128

3,718 3,679

3,214

3,183

4,073

3,914

3,468 3,685

3,713

3,441
2,318

2,268
1,586

50%
40%

5,130

4,000

2,000

+9.6% YoY

March 2011 The
Great East Japan
Earthquake

60%

1,372

0

2,306

30%
3,372
20%
10%
0%

Data: Real Estate Economic Institute Co., Ltd.

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

Real Estate Business: Macroenvironment 〜Number of Households by Residence in the Tokyo Area〜
・In 10 years from 1998 to 2008, total number of households in the Tokyo area increased by about 2.3 million (18.5%).
・Owned flat increased 66.7% in 10 years. This shows that demand for houses in the Tokyo area is concentrated in condominiums.
・Rented flat increased 8.4% in 10 years. Potential demand for condominiums is also increasing steadily.

■1998

Rentedhouse(singlefamily)

Others661,600

458,100

■2003

Own
house
(flat)
1,455,700

Rentedhouse(singlefamily）

1998〜 +40.2%
Others804,900

Own
house(flat)
2,040,400

421,500

Rentedhouse(singlefamily)
381,500

Total
household13,594,50
0

Totalhousehold
12,393,200Rentedhouse(flat)
4,952,000■2008

Own house(singlefamily)

4,865,800

Rentedhouse(flat)
5,084,000

2003〜 +18.9%
1998〜 +66.7%
Others1,004,300

Own
house
(flat)
2,426,800

Total
household
14,689,20
0

Own house(singlefamily)

5,243,700

Rentedhouse(flat)
5,367,600

1998〜 +9.7%
1998〜 +2.7%

2003〜 +5.6%
1998〜 +8.4%

Own
house
(singlefamily)
5,509,000
2003〜 +8.1%
1998〜 +18.5%

Data: Housing and Land Survey*Targets Tokyo, Kanagawa, Saitama and Chiba

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

Real Estate Business: Residential Series
Fiscal 2012 completion and posting of sales: 4 buildings/177 units
・Residential Shinagawa-Nakanobu: Shinagawa-ku, Tokyo 42 units Feb. 2012 completion Scheduled to begin sales in Mar. 2012
・Residential Ohanajaya: Katsushika-ku, Tokyo 67 units To be completed in Mar. 2012 Began sales in Oct. 2011
・Residential Monzennakacho: Koto-ku, Tokyo 24 units To be completed in May 2012 Began sales in Nov. 2011
・Residential Kanamachi: Katsushika-ku, Tokyo 44 units To be completed in Sept. 2012

Sites acquired: 4 projects: 276 units
・Saginomiya project: Nakano-ku, Tokyo 40 units
・Nakano-Sakaue project: Nakano-ku, Tokyo 60 units

・Tsunashima project: Kohoku-ku, Yokohama 46 units
・Sakuragicho project: Naka-ku, Yokohama 130 units

Residential Ohanajaya(Ohanajaya 10 mins walk)Residential Kanamachi(Kanamachi 3 mins walk)

Saginomiya project(Saginomiya 5 mins walk)Residential Monzennakacho(Monzennakacho 5 mins walk)

Nakano-Sakaue project(Nakano-Sakaue 7 mins walk)Residential Shinagawa-Nakanobu(Ebaranakanobu 6 mins walk)Tsunashima project(Tsunashima 6 mins walk)
Sakuragicho project(Sakuragicho 4 mins walk)27
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

Real Estate Business: Realization of Corporate Philosophy〜For safety〜“Retained horizontal strength of 1.0 times” in ordinary houses
Residential series has a “retained horizontal strength of 1.1 times” which is stronger

Ordinary houses
Retained horizontal strength 1.0 times

Residential series
1.1 times retained horizontal strength resistant toearthquake＊Just in case・Secure drinking water…In all projects, make sure to set up fire prevention water tanks (Ohanajaya & Kanamachi) or disasterprevention well (Shinagawa-Nakanobu & Monzennakacho) to purify water using emergency water refining equipment.
・Emergency supplies…Always have emergency supplies for all projects. Add facilities according to the features of properties.

Water refining equipment

Disaster prevention supply

Kamado stool (Ohanajaya)

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Manhole toilet (Ohanajaya)

28

Real Estate Business: Realization of Corporate Philosophy〜Integration with regional communities〜
Residential Monzennakacho “Harmony between environment and community”
In stead of thinking it as a condominium alone, World Intec will link the nature of the adjacent Botancho
Park with the greenery of the building and link the people gathering in the park with the community of
the condominium.

Residential Shinagawa-Nakanobu “Form a community at a pocket park”
Create a sidewalk by recessing the building.
Locate a pocket park with greenery around a symbol tree in agreement with the surroundings to make ita regional community for the residents.

Residential Ohanajaya“Cherry blossom square using existing trees”“A cherry blossom square” leaving the existing cherry blossom on the premise as it is to hold one’s
memory of the area in one’s heart. World Intec will make it a community space where people can get
together. “Kamado stool” will be located for disasters. It will also be a food distribution point at the timeof disaster.

Residential Kanamachi “Entrance for developing a community
About 3.6 meters high. Secure a vast space at the entrance hall where the sunshine comes in through alarge glass window for the residents to be able to get together easily.
Benches will be placed next to the symbol tree to make it a place for the residents to be able tocommunicate with people in the community.
Copyright © WORLD INTEC CO.,LTD. All Rights Reserved

29Real Estate Business

Our Strengths

Condominium market in Tokyo area

World Residential
Enormous capital・ A member of the World Intec Group

Existence of absolute needs
・6 million households living in rented houses

Establishment of a consistent system
・ Conduct management in addition to
manufacturing and sales

Establishment of marketing system

Improvement in competitive
climate・ From quantitative marketing to sales strategy

・ The collapse of condominium developers

Cooperation with partner companies
・ Leading companies including architect offices
and general contractors

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved30Real Estate Business; Earnings Plan
FY2012 plan:

Sales ¥7,769 million
Operating income ¥165 million (2.1%)＋412.9％ YoY ↗
Loss of ¥75 million in FY11

Establish a system to supply 500 units of condominiums at ¥20 billion in December 2016
(the company has 1% share in Tokyo)

Post sales promotion expenses based on the conservative accounting policy
Because of posting sales promotion expenses for condominiums to be delivered in the next fiscal year ahead ofschedule, profit margin can be controlled up to FY12/16 but after posting ¥20 billion, steadily post an operating
margin of more than 10%（Million yen）

S a les (left a xis)

Units sold (right a xis)

（No. of units）

14,000350

12,000300（Million yen）

Gross profit

SG& A expenses

2,000

SG&A
10,000Oper at ing income

3,000

SG&A

250
1,000

SG&A
8,000

200
0

6,000

150

4,000

100

2,000

50

-1,000-2,000-3,00000FY12/11

FY12/12FY12/13

FY12/14

FY12/11

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

FY12/12FY12/13

FY12/1431

Real Estate Business; Topics
About January 30, 2012 press release titled “Signing of Memorandum of Understanding forSponsorship of Suncity’s Business Revitalization”*(Now under negotiation to enter into a formal contract and there is a possibility of termination by consent)①Suncity is a Sendai-based developer (developed and sold over 145 condominiums (7,500 units) inthe past in 6 prefectures in Tohoku as well as in Kitakanto and Tokyo area)②Relocate part of the employees and properties to a new company and World Intec will provide
support and revitalize

Establish a foundation in the Tohoku region(establishment of a medium-and-long term foundation due to reconstruction demand)

Spread the group’s brand in the Tohoku region

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

4. FY2012 Business Forecasts

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

33Summary of FY2012 Consolidated Business Forecasts
Substantial growth in the Human resources education business and improvementin profit margin
Improvement in profit margin of Information technology & telecommunications businessContribution of profitable Real estate business(Consolidated)

YoY change
FY12/11 actual

FY12/12 plan

(Million yen)
Net sales
Operating income
Operating margin
Ordinary income
Ordinary income margin
Net income
Net income margin

ChangePct. change

37,892

49,611

11,718

30.9%

588

1,361

773

131.6%

1.5%

2.7%

−

−

678

1,306

628

92.7%

1.7%

2.6%

−

−

214

645

431

201.4%

0.5%

1.3%

−

−

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34

Quarterly Business Plan
In 1Q, costs for recruitment and education of personnel to meet large demand will be incurred inadvance and sales promotion cost in the real estate business toward holidays in May will be
incurred in advance that the company expects to post an operating loss temporarily but plans asubstantial contribution to profit from 2Q.
15.0%

16,000FY12/10

FY12/09

FY12/11

FY12/12 (est.)
13.0%

14,000

11.0%

12,0009.0%
10,000
7.0%
8,000
5.0%
6,000
3.0%
4,000
1.0%
0％

2,000

-1.0%

0

-3.0%
09/
1Q

2Q

3Q

7,533
Sales
Operating margin -2.0%

7,194
2.8%

6,959
1.0%

4Q

10/
1Q

2Q

3Q

7,406
3.6%

7,652
2.0%

7,926
1.7%

7,886
-0.6%

4Q

11/
1Q

2Q

3Q

4Q

8,644
1.2%

9,806
5.0%

8,920
0.3%

9,283
-0.2%

9883 10506 13898 13528 11677
0.9% -0.4% 2.7%
4.5%
3.5%

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

12/1Q 2Q
(est.) (est.)

3Q(est.)

4Q(est.)

Summary of FY2012 Business Forecasts by Segment
FY12/11(Million yen)

Human resources education businessNet sales
Factory business

Segment income
Profit margin
Net sales

Technology business

Segment income
Profit margin
Net sales

R&D business

Segment income
Profit margin
Net sales

Information technology &telecommunications
business

Segment income
Profit margin
Net sales

Real estate business

Segment income
Profit margin
Net sales

Other businesses(FY12/10=various services)

Segment income
Profit margin

Total

Net sales

FY12/12 forecast

15,722
596
3.7％

5,982
327
5.5％

2,502
241
9.6％

9,176
213
2.3％

1,514
-75
-4.9％

2,994
157
5.2％

37,892Elimination or corporate-873

Operating income

588

Operating margin

1.5％

20,120
1,026
5.1％
6,286
405
6.4％
3,250
278
8.6％
8,950
270
3.0％
7,769
165
2.1％
3,235
204
6.3％
49,611
-988
1,361
2.7％

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

YoY
ChangePct. change

4,398

28.0%

430

72.1%

−

−

303

5.1％

78

23.8％

−

−

747

29.9％

37

15.4％

−

−

△226

△2.5％

56

26.7％

−

−

6,254

412.9％

240

−

−

−

240

8.0％

46

29.5％

−

−

11,719

30.9％
-

773

131.6％−−

36

5. Medium-Term Vision

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

37Market Environmental Recognition
Human resources education business; Can raise market share (operating margin of 5 to 7%)
The entire ratio is on a decreasing trend due mainly to the yen’s appreciation
Increase of companies using services for the dispatch of workers to manufacturing industry
Dominated by private companies as a result of focusing on compliance

Information technology & telecommunications business; Booming demand (operating
margin of 3to 5%)

Booming demand associated with expansion of replacement demand for smartphones and tablets
Cloud services for smartphones and tablets will develop; Will compete using World Intec’s sales force
and proposal capabilities (solutions).

Real estate business; Strong demand (operating margin of 10 to 15%)
Condominium contract rate in the Tokyo area remains strong.
Acquisition of sites for medium and small-sized condominiums resulting in severe competition.
Strengthening of foundations in the Tohoku region associated with the reconstruction demand (plan tosupport Suncity)

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

38

5-Year Medium-Term Management Vision; Aim for sales of ¥100 billion!!
Now forming a detailed 3-year management plan. Plan to announce a medium-term management
plan between 1Q and 2Q.

2016
Group sales exceed¥100 billion!

120,000
100,000
80,0002012
Aim for group salesof ¥50 billion

Real estate business¥20 billion
Information technology &telecommunications business¥10 billion

60,00040,000
Human resources
education business¥70 billion

20,0000
2011/12.

2012/12.

2013/12.

Human resources education

2014/12.

2015/12.

Information technology & telecommunications

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

Real estate

2016/12.
Others39

Shareholder Return Policy
Based on stable dividend payments, consider paying dividends linked to performance
EPS (maximized earnings per share): FY12/10 EPS ¥39.6 (est.)
Dividend policy: Consider a dividend payout ratio of more than 15%*To be formally determined at the time of the 2nd quarter earnings announcement

Dividend per share
Record date

InterimYear-end

Annual total

Dividend
payout ratio

FY12/10 actual

-

¥4.5

¥4.5

125％

FY12/11 actual

-

¥4.5

¥4.5

35.4%

¥4.5

¥4.5

11%

（¥6）

（¥6）

（15.1％）

FY12/12 forecast-

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved40World Intec Corporate Profile
CompanyWORLD INTEC CO., LTD.
4F No.2 Quest Building, 1-3-9 Bashaku, Kokurakita Ward, Kita-Kyushu City, Fukuoka

Head Office Prefecture

Established February 12, 1993
CEO
Eikichi Iida
Main
Businesses

Outsourcing business primarily for the manufacturing sector (R&D, design anddevelopment, production engineering, production, logistics, marketing and sales, aftersales services)

Capital¥700 million (as of December 31, 2011)
Workforce 9,419 (consolidated/ as of December 31, 2011)
Locations 57 (consolidated/ as of December 31, 2011)
Listed Date February 9, 2005 (JASDAQ Stock Exchange / Stock Code 2429)《Corporate Symbol》
WORLD INTEC’s corporate symbol represents the
cutting edge in the effort to create new meaning to workand the joys associated with one’s vocation. The blue
sphere stands for our engineering expertise and the trust
we have accumulated, while the yellow figure symbolizes
further growth and development, as well as the corporate
ideal we aim to realize.

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

41

For more information

Akihiko Omoto
Public Relations and Investor Relations Department
Corporate Planning Division
World Intec Co., Ltd.

TEL

03-3516-1122

E-MAILirinfo＠witc.co.jp

URL

http://www.witc.co.jp/

No information in this presentation is provided for the purpose of soliciting purchases or sales of World
Intec stock. Furthermore, opinions, forecasts and other information not based on historical facts represent
the judgments of World Intec at the time this presentation was prepared. World Intec does not guarantee
the accuracy of this information and may revise this information at any time without prior notice. World
Intec and other providers of this information assume no responsibility whatsoever for any losses incurredin association with the information in this presentation.

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved42