Consolidated Financial Results for the Third Quarter of 2021
(Nine Months Ended September 30, 2021)[Japanese GAAP]
November 10, 2021

Company name: WORLD HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange, First Section
2429
URL: http://www.world-hd.co.jp
Eikichi Iida, Chairman and President
Shigeru Nakano, Director, Business Management Division Manager
Tel: +81-92-474-0555
Scheduled date of filing of Quarterly Report:
November 12, 2021
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
None
Holding of quarterly financial results meeting:Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Nine Months of 2021 (January 1 to September 30, 2021)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%

Nine months ended Sep. 30, 2021
101,533
Nine months ended Sep. 30, 2020
98,682
Note: Comprehensive income (millions of yen)

Million yen%

Million yen%

Million yen

%

3,150
3,010

4.6
13.2

2.9
4,115
25.3
4,362
20.9
(3.2)
3,283
(19.7)
3,608 (12.1)
Nine months ended Sep. 30, 2021: 3,358 (up 7.8%)
Nine months ended Sep. 30, 2020: 3,114 (up 16.1%)

Net income per share
Nine months ended Sep. 30, 2021
Nine months ended Sep. 30, 2020

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

Diluted net income per share

Yen

Yen

180.50174.23179.25173.53(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

As of Sep. 30, 2021
91,242
31,672As of Dec. 31, 2020
79,15730,061
Reference: Shareholders’ equity (millions of yen)
As of Sep. 30, 2021: 29,975

Yen

32.9
1,716.99
36.1
1,638.03
As of Dec. 31, 2020: 28,589

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

3Q-endYen

Year-end
Yen

Total
Yen

Yen

101.70101.70
2020
0.00
2021
0.00
84.80
84.80
2021 (forecast)
Note: Revisions to the most recently announced dividend forecast: Yes
Regarding revisions to the dividend forecast, please refer to the press release titled “Notice of Revisions to Consolidated F orecast
and Dividend Forecast” dated November 10, 2021.

3. Consolidated Forecast for 2021 (January 1 to December 31, 2021)
Net sales
Million yen

Operating profit%

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

Ordinary profit%

Million yen%

Million yen%

Yen

Full year
151,354
5.4
7,316
17.0
7,547
11.2
4,931 (16.6)
282.44
Note: Revisions to the most recently announced consolidated forecast: Yes
Regarding revisions to the consolidated forecast, please refer to the press release titled “Notice of Revisions to Consolidat ed
Forecast and Dividend Forecast” dated November 10, 2021.

* 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 Presentin g Quarterly Consolidated
Financial Statements” on page 9 for further information.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: 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, 2021:

17,571,900 shares

As of Dec. 31, 2020:

17,566,900 shares

As of Dec. 31, 2020:

113,477 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2021:

113,538 shares

3) Average number of shares during the period
Nine months ended Sep. 30, 2021:

17,455,188 shares

Nine months ended Sep. 30, 2020:

17,279,556 shares* The current financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Cautionary statement with respect to forward-looking statements, and other special items
Cautionary statement with respect to forecasts
Forecasts of future performance in this document are based on assumption judged to be valid and information currently
available to the Company’s management, but are not promises by the Company regarding future performance. Actual results
may differ materially from the forecasts for a number of reasons. Please refer to “1. Qualitative Information on Quarterly
Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements” onpage 4 for forecast assumptions and notes of caution for usage.
How to view supplementary materials for quarterly financial results
Supplementary materials for the quarterly financial results will be disclosed today (November 10, 2021), using the Timely
Disclosure network (TDnet), and available on the Company’s website.

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

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

2(2) Explanation of Financial Position

4(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

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

7

Quarterly Consolidated Statement of Income
For the Nine-month Period

7

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

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Changes in Significant Subsidiaries during the Period

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

9

Segment Information

91

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of 2021, the Japanese economy was briefly impacted by another wave of COVID-19
infections, but the economy continued to recover slowly as more people received vaccinations and the number of
new cases declined. In the manufacturing sector, which is the primary market of the World Holdings Group, there
were reductions in the output of automobiles and other products due to the semiconductor shortage, which also
affected other industries. However, the performance of manufacturers improved because of increasing exports asoverseas economies recovered, the growth of capital expenditures and other reasons.
Strong sales and earnings in the Human Resources and Education Business, which is the core business of theWorld Holdings Group, made a big contribution to the growth of consolidated sales and earnings. Earnings were
far higher than planned and the group’s businesses continue to perform very well. As a result, the sales andearnings forecasts for 2021 have been increased.
Net sales increased 2.9% year on year to 101,533 million yen. Operating profit increased 25.3% to 4,115 million
yen, ordinary profit increased 20.9% to 4,362 million yen, and profit attributable to owners of parent increased
4.6% to 3,150 million yen.
Factory Staffing Business
Sales and earnings increased significantly because of the recovery of manufacturing acti vity and the benefits ofinvestments made during the past several years that targeted strategic business sectors.
As the global semiconductor shortage continues, the number of orders in this business increased to a record high.
Increasing demand in the 5G and other sectors involving semiconductors was a major reason. There wassignificant growth in factory staffing orders in the semiconductor and semiconductor manufacturing equipment
category. In the logistics sector, the establishment of new business site s and other up-front investments arecontinuing in order to prepare for growth starting in 2022. All other market categories also performed well as theJapanese economy recovers from the COVID-19 downturn.
Hiring people to fill positions required due to the big increase in the number of orders continues to be difficult.
We are working on expanding recruiting activities by making investments primarily for strengthening our Job
Paper website.
As a result, sales were 50,228 million yen, up 29.9% year on year and segment profit increased 40.4% to 2,354
million yen.
Technology Staffing BusinessAll categories of this business are recovering from the COVID-19 downturn. The semiconductor, information andtelecommunications, construction engineering, and other categories are growing along with the seamless
utilization of the resources of the World Holdings Group. Cooperation with the Factory Staffing Business, where
performance in the semiconductor industry is strong, made a big contribution to the growth of this b usiness. In
the information and telecommunications category, collaboration with all group companies is being used tostrengthen the ability to perform projects outsourced by other companies.
As industries that are the main markets for this business recover, recruiting skilled engineers is becoming evenmore difficult. We are reexamining recruiting methods and upgrading the skills of our engineers by providing
training in control technologies to meet demand for skills involving the digital transformation and internet ofthings and in cloud-related system engineering. We also place our engineers in strategic assignments to enable
them to advance their careers. Providing our customers with an even higher level of engineering skills has
increased the profitability of the Technology Staffing Business.
Sales were 13,393 million yen, up 5.9% year on year and segment profit increased 16.4% to 1,615 million yen.

2

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

R&D Staffing BusinessIn the core research personal staffing sector, all categories performed well, inclu ding biotechnology, chemicals
and analytics in the medical field. The number of orders increased to an all-time high mainly because of
strategically expanding operations to more market sectors. As a result, sales and earnings have been increasing
steadily.
While taking actions needed to provide people for the rising number of orders, this business is making large
expenditures for recruiting activities to maintain a base for more growth in 2022. In addition, we are using ourpowerful training programs, which are a key strength of this business, to help employees upgrade skills andadvance their careers. Our goal is to establish a reputation as a provider of highly skilled research personnel.
Sales were 5,918 million yen, up 11.2% year on year, and segment profit increased 10.1% to 665 million yen.
Sales & Marketing Staffing Business
Growth continued in the contact center and light-duty categories. In addition, the performance of this business
was supported by the demand for staffing COVID-19 vaccination facilities and by demand associated with theTokyo Olympics. The result was big increases in sales and earnings.
We are considering numerous ways to enlarge the range of operations of this business to maintain a base for more
growth in 2022, such as by establishing a new call center and using our expertise concerning moving people todifferent assignments in order to receive orders for business process outsourcing.
Sales were 5,017 million yen, up 73.2% year on year, and segment profit was 243 million yen, compared with asegment profit of 21 million yen in the first nine months of 2020.
Real Estate BusinessWe are operating this business cautiously because prices of real estate in Japan are still high. The profitability ofthis business improved due to the use of sales activities backed by carefully planned and targeted marketing
activities. In addition, the closings of some sales of properties that were planned for the fourth quarter weremoved up to earlier in the third quarter. Due to these activities, the earnings of this business were much higher
than planned.
Although we remain cautious about purchasing real estate, activities continued for building a base for growthstarting in 2022. For example, we are using our commercial property development skills, a key strength of thisbusiness, to acquire quality properties.
This business is performing well in 2021 based on a plan that includes the sale of a large number of properties in
the fourth quarter, and contracting procedures are progressing steadily.
Sales were 17,068 million yen, down 42.9% year on year, and segment profit decreased 35.5% to 914 million yen.
Information and Telecommunications Business
The mobile phone shop business is undergoing another phase of significant changes because of the entry of newcompanies, new rate plans by all mobile phone carriers, such as service plans for only internet access, in responseto the request of the Ministry of Internal Affairs and Communications to lower the cost of using a mobile phone.
To overcome these challenges, this business is making investments for implementing new marketing activities,
training store personnel, and other measures to establish a network of highly competitive shops. These
expenditures caused a temporary decline in earnings both compared to the plan and the same period a year earlier.
Our goal remains to establish a network of stores rooted in the local community and receive benefits as one of thesurvivors in the mobile phone shop market in order to resume the growth of this business.
Sales were 7,296 million yen, up 3.4% year on year, and segment profit decreased 53.2% to 133 million yen.

3

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

OthersPerformance of agricultural parks recovered steadily from the COVID -19 shock. However, the performance ofHarvest Hill, Sakai Green Museum in Osaka prefecture, our flagship agricultural park, was severely impacted bytemporary closings during the busy spring and summer seasons due to declarations of a state of emergency. As
parks are well recognized as outdoor facilities that people can enjoy whi le avoiding close contact with others, we
implemented appropriate marketing activities that utilize this strength of agricultural parks to improve theirpresence as relaxing facilities necessary for the community.
Sales were 2,611 million yen, up 19.0% year on year, and there was a segment loss of 105 million yen, comparedwith a segment loss of 279 million yen in the first nine months of 2020.
(2) Explanation of Financial Position
AssetsTotal assets increased 12,085 million yen from the end of 2020 to 91,242 million yen at the end of the third
quarter of 2021. This was mainly due to increases of 1,101 million yen in cash and deposits, 1,022 million yen innotes and accounts receivable-trade, 8,799 million yen in real estate for sale in process and 533 million yen in
goodwill.
Liabilities
Total liabilities increased 10,474 million yen from the end of 2020 to 59,570 million yen. This was mainly due toan increase of 2,937 million yen in short-term borrowings, a decrease of 1,418 million yen in accrued expenses, adecrease of 903 million yen in accrued consumption taxes and an increase of 9,163 million yen in long-termborrowings.
Net assets
Net assets increased 1,611 million yen from the end of 2020 to 31,672 million yen mainly due to increases of
1,320 million yen in retained earnings and 191 million yen in non-controlling interests.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
As the severity of the pandemic in Japan slowly declines, the manufacturing category of the core Human
Resources and Education Business is performing well. Most significantly, 5G and other semiconductor -related
demand is making a big contribution to consolidated sales and earnings. Sales and earnings are also backed byorders involving COVID-19 vaccination facilities and the Tokyo Olympics. In the Real Estate Business, sales ofproperties closed with good timing because of sales operations backed by accurate and effective marketing
activities. Due to the outlook for 2021 sales and earnings to surpass t he original forecast, the forecast that wasannounced on February 8, 2021 has been revised. For more information, please refer to the press release titled“Notice of Revisions to Consolidated Forecast and Dividend Forecast” dated November 10, 2021.

4

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Third quarter of 2021
(As of Sep. 30, 2021)

2020(As of Dec. 31, 2020)
AssetsCurrent assets
Cash and deposits

22,817

23,918Notes and accounts receivable-trade

12,817

13,839639

804

Real estate for sale

5,748

5,743

Work in process

123

145

Real estate for sale in process

22,14630,946

Other

3,842

3,748

(2)

(4)

68,132

79,143

5,297

5,488

Goodwill

104

638

Other

186

201

Total intangible assets

291

839

Investment securities

1,550

1,645

Deferred tax assets

Merchandise and finished goods

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

Investments and other assets
2,398

2,470

Leasehold and guarantee deposits

903

1,044

Other

808

834

Allowance for doubtful accounts

(224)

(224)

Total investments and other assets

5,436

5,770

11,024

12,09979,157

91,242

1,072

1,155

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

527

186

Short-term borrowings

17,204

20,142

Accrued expenses

6,746

5,327

Advances received

552

344

Income taxes payable

1,049

847

Accrued consumption taxes

3,110

2,206

124

588

Provision for bonuses
Other

4,248

4,709

Total current liabilities

34,63735,50812,073

21,237

172

180

1,921

2,265

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

5

291

378

14,45824,06149,09559,570WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

(Millions of yen)
Third quarter of 2021
(As of Sep. 30, 2021)

2020(As of Dec. 31, 2020)
Net assets
Shareholders’ equity
Share capital

1,244

1,248

Capital surplus

1,443

1,446

Retained earnings

26,05427,374

Treasury shares

(119)

(119)

Total shareholders’ equity

28,62329,950

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

(15)

25

Foreign currency translation adjustment

1

17Remeasurements of defined benefit plans

(20)

(17)

Total accumulated other comprehensive income

(34)

25

49

83

Share acquisition rights
Non-controlling interests

1,422

1,613

Total net assets

30,061

31,672

79,157

91,242

Total liabilities and net assets

6

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

(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 2021
(Jan. 1 – Sep. 30, 2021)

First nine months of 2020
(Jan. 1 – Sep. 30, 2020)
Net sales
Cost of sales

98,682
81,886

101,533
84,066Gross profit

16,796

17,467

Selling, general and administrative expenses

13,512

13,351

Operating profit

3,283

4,115

221

259

48

5

215

161

486

425

124
11
25

126
52

Non-operating income
Subsidy income
Income of support to investment in property andequipment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of shares of subsidiaries and associates
Disaster insurance income
Gain on extinguishment of tie-in shares
Total extraordinary income
Extraordinary losses
Loss on disaster
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

161

179

3,608

4,362

175
6
-

1
42

181

43

2

-

2

-

3,787

4,405

658

1,114

3,129

3,290

118

140

3,010

3,150

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period)First nine months of 2020
(Jan. 1 – Sep. 30, 2020)(Millions of yen)First nine months of 2021
(Jan. 1 – Sep. 30, 2021)

3,129

3,290

Valuation difference on available-for-sale securities

(17)

40

Foreign currency translation adjustment

(1)

24

3

2

(14)

68

3,114

3,358

2,996

3,210

118

148

ProfitOther comprehensive income

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

8

WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

(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
TOHOWORLD Corporation, which was a non-consolidated subsidiary in 2020, is included in the consolidated
financial statements starting in the first quarter of 2021 because of the increasing significance of this company.
This change is not deemed as a change in a significant subsidiary.
World Capital Solution Co., Ltd., which was a non-consolidated subsidiary in 2020, is included in the
consolidated financial statements starting in the third quarter of 2021 because of the increasing significance of
this company. This change is not deemed as a change in a significant subsidiary.
Creation View Co., Ltd. became a consolidated subsidiary in the second quarter of 2021 following the acquisitionof its shares by World Holdings on May 28, 2021. This change is not deemed as a change in a significant
subsidiary.
IMAGINEPLUS Co., Ltd., which was a non-consolidated subsidiary in the first quarter of 2021, was dissolved
because of its absorption and merger with consolidated subsidiary World Staffing Co., Ltd. on June 1, 2021. Thischange is not deemed as a change in a significant subsidiary.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
The tax expenses are calculated by first reasonably estimating the effective tax rate after the application of tax
effect accounting with respect to profit before income taxes for the fiscal year in which the quarter under review
falls, and multiplying that rate by the profit before income taxes for the quarter under review. However, World
Holdings uses legally stipulated effective tax rates to calculate tax expenses when the use of estimated tax rates
produces a clearly irrational result.
Segment Information
I. First nine months of 2020 (Jan. 1 – Sep. 30, 2020)
1. Information related to net sales and profit or loss for each reportable segm ent(Millions of yen)
Reportable segment
Information
Sales &
Others
Factory Technology
R&D
Real
and
MarketingStaffing
Staffing
Staffing
Estate Telecommuni- Subtotal (Note 1)
Staffing
Business Business BusinessBusinesscations
Business
Business

Total

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

Net sales
Sales toexternal
38,651
12,6505,320
2,897 29,908
7,059
96,488 2,194 98,682
98,682
customers
Inter-segment
sales and
0
357
151
45
24
579
97
676
(676)
transfers
Total
38,652
13,0085,320
3,049 29,953
7,083
97,068 2,291 99,359(676)
98,682
Segment
1,676
1,387
604
21
1,418
284
5,392 (279)5,113 (1,829)
3,283
profit (loss)
Notes: 1. “Others” represent businesses not included in reportable segments and include the operation and management ofagricultural parks, the operation of personal computer schools, the production of websites and other services.
2. The -1,829 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 42
million yen, and -1,872 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable to anyof the reportable segments.

9WORLD HOLDINGS CO., LTD. (2429) Financial Results for the Third Quarter of 2021

3. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
There is no significant change.
Significant gain on bargain purchaseNot applicable.
II. First nine months of 2021 (Jan. 1 – Sep. 30, 2021)
1. Information related to net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Information
Sales &
Others
Factory Technology
R&D
Real
and
MarketingStaffing
Staffing
Staffing
Estate Telecommuni- Subtotal (Note 1)
Staffing
Business Business BusinessBusinesscations
Business
Business

Total

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

Net sales
Sales toexternal
50,22813,393
5,918
5,017 17,068
7,296
98,922 2,611 101,533- 101,533
customers
Inter-segment
sales and
24
454
0
178
8
15
681
94
775
(775)
transfers
Total
50,252
13,8485,918
5,196 17,077
7,311
99,603 2,705 102,309(775) 101,533
Segment
2,354
1,615
665
243
914
133
5,926 (105)5,820 (1,704)
4,115
profit (loss)
Notes: 1. “Others” represent businesses not included in reportable segments and include the operation and management ofagricultural parks, the operation of personal computer schools, the production of websites and other service s.
2. The -1,704 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 3
million yen, and -1,708 million yen in corporate expenses that cannot be allocated to any of the reportablesegments. Corporate expenses mainly consist of general and administrative expenses that are not attributable to anyof the reportable segments.
3. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
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), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for th e convenience of readers
who prefer an English translation.

10