Business Report 2020
To Our Stakeholders

January 1

December 31, 2020

Contents
01 Interview with the President
07 Business Segment Overview

04 History

05 Close-up

09 Consolidated Financial Results

10 Corporate Data

Creating the “Ways We Live”
Our operations are guided by the basic philosophy of using our businesses forcontributing to people and culture worldwide.
We have a firm commitment to being a source of many types of workplaceenvironments that enable people to lead fulfilling lives.
All activities are centered on our social mission of creating the “ways we live.”
Securities Code: 2429

Interview with the President

Aiming to become a company that is flexible to change,
with services rooted in sincerity and kindness
World Holdings is using the strengths of a multiple-business portfolio to transform dramatic changes in society into
opportunities.
Chairman and President Eikichi Iida talks about initiatives aimed at steady and sustainable growth through the World
Holdings commitment to creating the “Ways We Live.”

FY12/2020:
Overview of Business Activities
Although the COVID-19 crisis triggered a steep downturn inthe macroeconomic environment, consolidated net sales
and earnings increased because of the strengths of thebusiness portfolio strategically built up to cover many market
sectors.

Eikichi Iida
Chairman and President

I would like to review our business activities in fiscal 2020,
ended December 31, 2020, focusing mainly on the core
Human Resources and Education Business. In the period
since the global financial crisis of 2007–08, worldwide
monetary easing created a prolonged economic climate withthe characteristics of an asset bubble. As a result, thehuman resource services market benefited from a phase ofexcessive growth.
Based on this viewpoint, however, World Holdings has
not relied on this market expansion linked to a bubble
economy. We have instead formulated a growth strategy toachieve stable and sustainable growth, and haveestablished a system capable of covering all therequirements of client companies. We have also focused on
business categories that will drive the next generation of
growth, and have trained our people to upgrade their skills
01

and help them shift to higher-paying jobs.
Because of these initiatives, all of which employ a
medium-term perspective, the unprecedented impact of the
COVID-19 crisis did not significantly disrupt our operations.
I believe we were able to continue growing as planned.
Our major competitors have grown rapidly together withthe bubble-like expansion of Japan’s human resource
services market during the past several years. In
comparison, our growth may appear to be only moderate.
This reflects our goal of becoming a powerful company thatcan continue growing even during a crisis such as the
COVID-19 pandemic. Our approach to growth is toconsistently make investments needed for a soundbusiness foundation, rather than seeking an unreasonable
pace of expansion. In the fiscal year under review, theWorld Holdings Group concentrated on creating
environments that enable many types of people to fully
utilize their skills as well as on creating new “Ways We
Live.” I believe our performance reflected the success of
this approach based on our growth strategy.
Overview of the Human Resources and Education Business
The 5G sector of the Factory Staffing Business was one of
the best-performing categories of this business. As in prioryears, we provided manufacturing sector services
extending from upstream to downstream tasks. This breadth
supported measures to strengthen ties with other businesssegments and extend operations to additional market
categories. Taking these actions improved our ability tomeet our customers’ needs while giving our workforce agreater variety of job opportunities. We also achieved
progress in upgrading the skills of our people and giving
them more opportunities to shift to higher-paying jobs.
Semiconductors and machinery, primarily involving 5G
technology, are among the highest priorities of the Human
Resources and Education Business. Due to strategic sales
activities, our 5G operations grew during 2020 because oflarge orders and other accomplishments. To build on thisgrowth, we increased recruiting activities, opened new
offices and made other upfront investments in the second
half of 2020.
Demand in the logistics sector was strong because ofspending by people staying at home for safety. We opened
new locations and made other upfront investments toposition ourselves for significant growth in this sector in 2021
and thereafter. We started serving logistics companies fullyin 2012 due to the outlook for the long-term growth of
e-commerce. Rather than supplying temporary workers, weare meeting the needs of logistics companies with third-party
logistics (3PL), in which all distribution center operations areoutsourced to us. When we started this business, we weretaking on an entirely new challenge. Since then, we havegained the ability to hire thousands of people as needed,
started using systems to perform business processes more
efficiently, trained people to become managers, and taken
many other actions. Knowledge acquired in doing so was amajor reason for our ability to start new logistics bases
during 2020 without difficulty.
There are also initiatives to strengthen our presence ingrowing markets, training our people so that they can earnhigher rates, and making other improvements in our otherbusinesses: Technology Staffing, R&D Staffing, and Sales& Marketing Staffing. At the same time, we continue toinvest in these businesses for the next phase of growth. As
a result, the Human Resources and Education Business
workforce reached a record high of 27,543 at the end of
2020, 5,898 more than a year earlier.
Overview of the Real Estate Business
The real estate market bubble has continued for longer than
expected because of the consistently large surplus of funds
caused by monetary easing worldwide. Due to this situation,in 2020 we acquired properties cautiously. In addition, wesold properties with carefully chosen timing based on themedium-term market outlook and our plan for earnings.
The global financial crisis of 2007–08 forced many
weaker real estate companies in Japan to shut down. We
decided to start a real estate business in 2010 to takeadvantage of the resulting opportunities. As Japan’s realestate market recovered, the growth of this businessaccelerated. Activities involving property are the main
component of this business, primarily real estatedevelopment projects for condominiums and business sites
and renovation projects to revitalize older properties.
Overall, we enjoy a sound base for further growth in ourreal estate operations.
We started selling development projects in 2017, thepeak of Japan’s real estate market upturn, while closely
monitoring market trends. From a short-term perspective,
some of these sales shifted earnings to a different fiscal
year. These sales peaked in 2019, and I believe that ourReal Estate Business is now performing as planned.
However, real estate prices have remained high for
longer than we expected. There is no change in our policyof disciplined growth of operations linked to property. To
prepare for a market downturn, we have started prudent
measures to build a framework for businesses involving

real estate finance. Two examples are asset managementand debt collection. As a step to finance these new
businesses, we established a committed credit facility of¥20,000 million at the end of 2020.

Activities in 2021 and theFollowing Years
I think our group is well positioned for further growth once
signs of an economic recovery begin to appear. My
confidence is backed by the upfront investments we havemade during the past few years. In 2021, the Human
Resources and Education Business will continue to be themain source of our group’s growth. In the Real EstateBusiness, I expect growth to slow briefly because of ourcautious posture due to the real estate bubble in Japan.
Even though the Japanese government is undertaking
massive expenditures to offset the negative impact of the
COVID-19 crisis, I believe that a reversal of real estate
prices is slowly approaching. This is why we are preparing
to invest quickly when the timing is right, including by useof the committed credit facility.
Over the years, we have acquired knowledge on our own

Overview of Consolidated Financial Results for FY12/2020
FY12/2019
Results (¥ million)

Human Resources andEducation Business

Segment sales

Information andTelecommunications
Business

5,179

Segment sales

42,082

Segment profit

1,460

Segment sales

12,344

Segment profit

10

Segment sales

4,118

Other Businesses

Total

77,774

Segment profit

Real Estate Business

FY12/2020

Profit margin (%)

Results (¥ million)

Profit margin (%)

83,142
6.7

5,515

+6.9
6.6

48,081
3.5

3,550

7.4

9,133
0.1

240

2.6

3,214

+6.5

5,451

+14.3

47,713+143.1

3,369

-26.0

9,222

+2,097.3

237

-22.0

3,002

vs. Plan (¥ million)

+521
6.6

+63
+368

7.1

+180
-89

2.6

+3
+212

132

—

(339)

136,319

143,571+5.3

142,558+1,012Elimination or
corporate(2,052)(2,854)—(2,711)-142

Operating profit

4,730

+32.1

6,006

6,251

—

Profit margin (%)

82,620

Segment sales

3.5

(200)

Plan (¥ million)

Segment profit

02

3.2

FY12/2020 (plan)YoY change (%)

4.4

—

4.2

+139

+244

to take on new challenges. To start our logistics business,for example, we used horizontal expansion underpinned byknow-how acquired in our Factory Staffing Business. We
still have no intention of undertaking M&A or other business
investments that target next-generation themes simply forthe purpose of growth. However, we will continue to seekbusiness investments where the primary objective isacquiring businesses or knowledge that are vital to thesuccess of growth strategies in our existing businesses.
I am strongly commited to leveraging the strengths of ourdiversified business portfolio to create many more new“Ways We Live.” We are working on a design for more
growth, making more progress with business andgeographic diversification, and aiming for the fusion of ourbusiness model. I am confident that these measures will
enable us to build an infrastructure for our operations that iswell balanced and stable.

by adapting flexibly to the enormous changes that are
redefining how we work and live. But strength alone will not
enable us to accomplish our goals. Communication backed
by sincerity and kindness will be vital to our success. We
must embrace the spirit of wa (harmony) to maintain lines ofcommunication with people of all backgrounds, because
the sustained growth of the World Holdings Group will
require earning and maintaining the trust of all our
stakeholders.

Creating the “Ways We Live” is our social mission. Our
goal is the creation of environments that enable many
people to realize their full potential at work as well as toenjoy fulfilling lives. The world is changing in numerous
ways. While adhering to the principles of sustainable
management, we will remain focused on measures for thesustained growth of the World Holdings Group and thecreation of new forms of value.

Consolidated Forecast for FY12/2021
FY12/2020
Results(¥ million)

Human Resources andEducation Business
Real Estate BusinessMessage to Our Stakeholders

Information andTelecommunications Business
Other Businesses

The economic environment in Japan may continue to bechaotic for a few more years. We view this uncertainty as asource of new opportunities.
The World Holdings Group must become even stronger

Total

Segment sales

83,142

Segment profit

5,515

Segment sales

48,081

Segment profit

3,550

Segment sales

9,133

Segment profit

240

Segment sales

3,214

Segment profit(200)

Segment sales

143,571

FY12/2021

Profit margin (%)

Forecast (¥ million)

Profit margin (%)

YoY (%)

96,825
6.6

+16.5

6,210

6.4

+12.6

5.4

-38.9

2.2

-20.8

40,363
7.4

-16.1

2,167
8,769

2.6

-4.0

190
4,236

—

+31.8

170

4.0

—

150,194

Elimination or corporate(2,854)

Operating profit

6,251

+4.6

(2,274)
4.4

—

6,465

4.3

+3.4

Financial Highlights

Net sales:

Operating profit:¥143,571

million

YoY:

5.3%

UP

¥6,251

millionYoY:Profit attributable toowners of parent:

Ordinary profit:

32.1%¥6,786UP

million

YoY:

41.2%

UP

¥5,913

million100.0%

YoY:

UP

5,913

127,147

142,894

136,319

143,571

150,194

7,064

7,370
6,251

7,007

6,465

7,357

FY12/2018

FY12/2019

FY12/2020

FY12/2021(forecast)

FY12/2017

FY12/2018

FY12/2019

6,388

4,612

4,650

4,805

4,730

FY12/2017

6,786

FY12/2020

FY12/2021(forecast)

FY12/201703

FY12/2018

FY12/2019

4,573
2,956

FY12/2020

FY12/2021(forecast)

FY12/2017

FY12/2018

FY12/2019

FY12/2020

FY12/2021(forecast)History

Sustainability management
encompassing many business units inorder to achieve the group mission ofcreating the “ways we live”

Human Resources andEducation BusinessSubcontracting and temporary staffing services
that span a broad spectrum of market sectors
primarily involving manufacturing: R&D, designs
and development, production, logistics, sales,
after-sales services and other activities

The World Holdings Group consists primarily of a pure holding company and 36 major affiliatedcompanies. For the sustainability of business operations, rather than relying on a single core activity,
we have several main businesses: Human Resources and Education, Real Estate, and Information
and Telecommunications. This diversity creates a stable and well-balanced foundation for the group.
We believe this is the most important aspect of our management. We are determined to take our
mission of creating the “ways we live” to an even higher level in order to continue supplying
workplaces where an even larger number of people can grow and achieve their goals. Our objective
is building a base for business operations that is not vulnerable to changes in the economic andsocial climate so that we can continue to aim for consistent and sustainable growth.

Growth andDiversification
The stability and balance of thebusiness operations of World Holdings
date back to the 1981 establishment of
a diversified real estate company
called Mikuni Sangyo (now MIKUNICo., Ltd.) by Eikichi Iida, the current
chairman and president of World
Holdings. The failure of many realestate companies when Japan’s asset
bubble burst reinforced Mr. Iida’s
commitment to stability and balance.
As a result, a number of otherbusinesses have been added during
the following years.

Operation and management ofagricultural parks, operation of
personal computer schools, website
production, and other services

Started the Human Resources andEducation BusinessStarted the Information andTelecommunications BusinessStarted the Real Estate Businesse-support, Inc. became a member ofthe World Holdings Group

Established WORLD RESIDENTIAL Co., Ltd.

2008

June 1997
Started the Technology
Staffing Business

April 2005
Started the Sales &Marketing Staffing Business

68,82948,76734,851
978

1,345

29,094

32,109127,147

7,370

143,571344

53,00756,450

1,223

2,120

150,194(forecast)

136,319
6,251

6,465

94,334

5,137

4,730

3,748

37,892

1,089
389

7,407

87,984

February 2002

46,498142,894

7,064This crisis had a severe negative impact
on the Human Resource Business, but
performance was supported by the
Information and Telecommunications
Business, the Group’s second corebusiness. The result was steady growth in
the following years.

Started the R&D
Staffing Business

Operating profit(¥ million)

Started the Real Estate
Finance Businesses

Started a real estate business to take advantage
of opportunities created by the big decline in thenumber of real estate companies in Japancaused by the global financial crisis

Global financial crisis

Net sales

June 2019

April 2010

The first step was the launch of a temporary
staffing service, which was a relatively
unknown business in Japan at that time, and a
subcontracting service, another relatively new
business scheme. WORLD INTEC (started
operations with the current Factory Staffing
Business) was established with the goal of
helping manufacturers in Japan to become
cost competitive again as well as to provide
stable jobs.

Sales & Marketing
Staffing Business

Operation of mobile phone stores aswell as provision of solutions forcorporate clients and telemarketingbusiness

December 2005

(formerly WORLD INTEC CO., LTD.)R&D Staffing
Business

Other Businesses

February 1993

EstablishedWORLD HOLDINGS CO., LTD.

Technology Staffing
Business

Information andTelecommunications Business

Real Estate Business
Real estate development andrenovation as well as the real estate
finance businesses

Factory Staffing
Business

588

FY12/2006 FY12/2007 FY12/2008 FY12/2009 FY12/2010 FY12/2011 FY12/2012 FY12/2013 FY12/2014 FY12/2015 FY12/2016 FY12/2017 FY12/2018 FY12/2019 FY12/2020 FY12/2021
February 2005
Listed on the JASDAQ Securities Exchange

July 2014
Company name changed to WORLD HOLDINGS CO., LTD. and shifted to a holding company structure04

March 2016

Listed on the Second Section of the Tokyo Stock Exchange

June 2016

Moved to the First Section of the Tokyo Stock ExchangeClose-Up

Growth strategies for major businesses

Strategies for growth that accuratelyreflect market trends and customer needs

We will continue to place priority on building a sound and well-balanced foundation
for growth. Business operations are backed by a business model that emphasizes
adapting with agility to changes in the economy. This model draws on thestrengths of a diversified business portfolio, operations spanning many market
sectors and regions, and the combination of sales from one-time contracts andsources of recurring revenue.

Human Resources and Education Business

Strategy

1

Increase orders covering many tasks andprocesses

Strategy

For many years, the World Holdings Group has provided services to manufacturers that extend
from upstream to downstream processes. Our goal is to build on this strength to be a source of
seamless comprehensive support. Providing support for many requirements rather than only one
task will allow us to establish a distinctive position in the human resource services industry.
We are already seeing progress with increasing cooperation among different business units. We
want to go beyond the manufacturing domain to cover the entire service domain. Using thishorizontal expansion will make it possible to supply seamless total support that precisely matches
the requirements of each customer. We plan to use this broad coverage to achieve steady growthin orders.

2

Become the leading brand in the manufacturing
domain and grow in the service domain

As the COVID-19 crisis continues, more growth is anticipated in the market for human resource
services in the manufacturing domain. We aim to become the leading brand in this domain by
expanding current activities to cover more market sectors and further improving the quality of ourservices.
The service domain is an enormous market, with the potential for a diverse array of new business
opportunities. This strategy aims for further growth by broadening our business operations,particularly involving the current categories of light-duty jobs, large stores and call centers.

Outsourcing Market
Growth during
the COVID-19 Crisis

Seamless coverage of many market sectors with emphasis on manufacturing

Create entirely
new markets

Scale: ¥6.5 trillion and more potential
Researchanddevelopment

Designanddevelopment

Manufacturing

Logistics

After-sales
services

R&D

Technology

Factory

Factory

Technology

Scale: ¥3.5 trillion and more potential

Light-duty job

GrowthSales
Call centers

Preeminent
brand

Sales &
marketingCapturing orders that cover more than one business segment
by supplying seamless total support not restricted to a single business task

Manufacturing
domainIncreasing orders that cover many tasks and processes
05

ServicedomainStrategy3

Create new markets for the human resource business by using
joint ventures, consortiums and other forms of collaboration

Since our inception, we have promoted the new concept of “co-sourcing,” which takes conventional outsourcing to ahigher level. Using this approach helps us to solve the problems of our customers by working even more closely withthem. Our goal is consistent growth backed by a position within the human resource services industry that no competitor
can match as we utilize consortiums and joint ventures, our key strengths, and other forms of collaboration.

Real Estate Business

Strategy1

Maintain a suitable level of earnings in existing operations
and start real estate financial services for growth

As we see a continuing bubble in Japan’s real estate market, we have adopted a more cautious stance in this business.
To generate earnings from development and renovation operations, which are property-linked businesses, the scale ofthese operations will be maintained at a proper level as we monitor changes in the real estate market. So that we can act
quickly when the real estate market alters direction, we have established a committed credit facility. In addition, we arefocusing on building infrastructure for real estate financial services.

Strategy

2Further improve the stability of business operations throughlong-term ownership of income-producing properties

This strategy involves the use of real estate liquidationand securitization, a long-term holding format, to add asource of recurring revenue to the Real Estate Business,
which currently generates most sales from one-time
projects. Adding such steady revenue will boost stability
in the performance of this business.
We have established Mirai Servicing Co., Ltd. tocreate a portal for real estate financial products andservices. We also established World Asset Management
Co., Ltd. to operate a financial business in accordancewith the Act on Specified Joint Real Estate Ventures andan asset management business in accordance with the
Financial Instruments and Exchange Act. Bothcompanies are achieving steady progress inestablishing a base for financial activities involving realestate.

Outdoor destinations with attractions thatallow distancing required by the pandemic
We directly operate four outdoor theme parks where visitors can enjoy
nature-themed activities. Agricultural park operations cover 12
locations overall, after adding parks where we are the designatedmanager or have an outsourcing contract. All park activities are
centered on the theme of providing a natural environment that
contributes to the sound development of children. Creating jobs forpeople living nearby and energizing the areas where parks are locatedare other important goals of these agricultural parks.

In 2020, agricultural parks were the World Holdings business unit that was mostaffected by COVID-19. Most significantly, parks remained closed during the peakspring visitor season in 2020 because of the state of emergency and other reasons.
In the fourth quarter of 2020, the subsequent recovery in the number of visitors
surpassed the prior-year level due to the success of measures to attract people.
People are drawn to agricultural parks as a place where they can enjoy nature
while maintaining proper social distancing. Visitors can dine outdoors, interact
with animals and safely enjoy many other activities. As the COVID-19 crisis
continues, we will maintain our contribution to society by drawing on thestrengths of agricultural parks, where people can avoid closed spaces, andboosting awareness of the parks as destinations that are needed to give visitors
a place to rest and enjoy outdoor activities.
Direct management

Designated management

1

9

Comorebi Ibaraido Forest

Direct management

Increasethe value of
properties

Acquisition ofproperties

Real estate portal((

Financial
institutions, etc.
use of corporate
restructuring asaccess to real estate

real estate
associated with
nonperforming loans(

Financial businessbased on the Financial
Instruments andExchange Act

Private realestateinvestment
trusts (REITs)

World Capital
Solutions)

World Holdings
Real Estate Businessreal estatedevelopment projects,
real estate purchases

Financial businessbased onthe Act on Specified
Joint Real Estate Ventures

Private fund)Mirai Servicing
Co., Ltd.

Long-termownership)2(

real estate liquidation,
securitization andasset management)

06

Shareholders
include regionalbanks in strategicareas of Japan

10 Hibikinada Green Park

Direct management

3

Outsourcing

Harvest Hill, Sakai Green Museum

11 Rakuten Life Insurance Park

Direct management

4“Smile Glico Park”

Okayama Forest Park

業務受託
Outsourcing

Designated management

5

Agriculture and Livestock Information
and Research Center, Kitakyushu City

Designated management

Blumen Hugel, Shiga Agriculture Park

Fureai Animal Park, Chiba Zoological Park

12 Minokamo Service Area

Designated management

6

Yodel Woods, Kamisaki Farmland Village Park
4

Designated management

7

Ama Site Park

Designated management

World Asset Management
Co., Ltd.

TOPICS

Agricultural Parks Business8

Wakayama Castle Park Zoo

9
10

6

3
7
8

2

12

11

1
5

28

Business Segment Overview

thDesign anddevelopment

Human Resources and Education Business
Manufacturing begins with R&D and requires design and development, production processes and other activities
to make a product. Next are logistics and sales operations to deliver products to purchasers as well as repair andother after-sales services. With subcontracting and temporary staffing capabilities, we are a one-stop provider ofservices extending from upstream to downstream processes in the manufacturing sector. We have the resources
to meet many requirements of client companies as well as to give our workforce the skills and other support theyneed to achieve their career goals.

Business
Overview

Segment sales¥83,142

Segment profit

million

6.9% U P

million

6.5% U P

Segment sales

Segment profit■Technology Staffing■Factory Staffing■Technology Staffing■R&D Staffing■Sales & Marketing■R&D Staffing■Sales & Marketing

77,774

57.9%

9.1%

83,142
4.8%

21.7%

8.7%

4.6%

66.3%

FY12/2019

FY12/2020

1,701
1,045

■Technology Staffing■Sales & Marketing

21,6452,634

27,543
2,778+5,898
22,103

16,266

FY12/2019

FY12/2020

1,541
1,120

Logistics
Logistic warehouse/
3PL

After-sales
services

Sales

Repairing/
Maintenance

Sales/ Light-duty jobs/
Call centers

5,179
13.7%

5,515
0.5%

15.3%

Although‌sales and earnings were held down as new orders were below the 2020 plan becauseof COVID-19, sales rose mainly reflecting the strength of the 5G and logistics sectors, butearnings decreased.
In‌ response to strong demand in the semiconductor and machinery sectors, primarily involving
5G technology, upfront investments were made to hire more people, setting up new businesssites and other actions.
To‌ open more business sites in the logistics sector, we made upfront investments in training
programs and other activities.

0.3%

34.0%

36.6%

Technology StaffingThe‌ workforce utilization rate fell and expenses increased as orders dropped below the initiallyplanned level because of COVID-19. Nevertheless, sales and earnings increased as training
programs made it possible to charge higher rates for our services.
This‌business placed priority on hiring experienced people and established a new training
framework, to enable new and current technology personnel to upgrade skills and shift tohigher-paying jobs in preparation for future growth.

51.7%

47.7%

FY12/2019

FY12/2020

R&D Staffing

Composition of Temporary Placement
Workforce (3-month average) (People)■Factory Staffing■R&D Staffing

One Stop
Service

Factory Staffing

20.5%

64.3%

Manufacturing line /Maintenance andpreservation

YoY:■Factory Staffing

Sales composition:

R&D
Biotechnology /Chemical research/
Clinical research

Manufacturing

FY12/2020 Overview¥5,515YoY:

Machinery/Electricity/
Electronics/System
integration designand development

Although‌the number of orders in the clinical research outsourcing sector decreased because of
COVID-19, sales and earnings rose due to strong temporary staffing demand for researchpersonnel.
Temporary‌
staffing orders for research personnel are growing because of the success of carefullytargeted marketing activities. To meet this demand, we made upfront investments to hire more
people and for other actions.

‌The
workforce was at an all-time high at the endof 2020, mainly because of a large fourthquarter increase in the number of people in the
Factory Staffing Business.
• Additional‌business sites for logistics andother activities contributed to a sizeable
increase in the temporary placement
workforce.

Sales & MarketingA‌ large volume of orders was recorded in the light-duty, big-box retail store, call center and othercategories because of the benefits of structural reforms in prior years.
Earnings‌decreased mainly because of a decline in orders in the apparel category and the severe
impact of COVID-19 on the tourism sector.

• ‌Growth was also fueled by strong demand forworkers in the semiconductor and machinery
sectors, chiefly involving 5G.

07

a

Information andTelecommunications Business

Real Estate BusinessBusiness
Overview

This comprehensive real estate business encompasses
real estate development, renovations, prefabricatedhouses and other activities directly related to properties,
and focuses on the recently started real estate financebusiness.

Business
Overview

Segment sales
Segment sales¥48,081

Segment profit
YoY:

million14.3% U P

¥3,550

Segment profit

YoY:

million143.1% U P¥9,133¥240

The main activities are the operation of SoftBank, au andother mobile phone stores having close ties with themarkets they serve, the provision of solutions forcorporate clients, and telemarketing.

YoY:

million26.0% DOWN
YoY:

million2,097.3% U P

Salescomposition:

6.4%

FY12/2020 Overview
COVID-19 restricted the operations of mobile phone stores and the corporate solutions business. The
closing and consolidation of some stores also negatively affected sales. There was a large improvement inearnings due to structural reforms that ended in 2019, including measures involving organizational andstore improvements, training to upgrade knowledge and customer service skills, and other actions.

Segment sales■Real estate development

Segment profit■Detached house

Other Businesses■Renovation, others

3,550

48,081
Sales composition:

33.5%

42,082
31.8%

Business
Overview

2.1%

47.2%

1,460
26.0%

This category includes operation and management of 12
agricultural parks with the theme of harmony between
nature, man and society, personal computer schools,
website production, and other services.

66.1%

26.8%

FY12/2019

FY12/2020

FY12/2019

FY12/2020
Segment sales

Segment loss

FY12/2020 Overview¥3,214¥200

YoY:

million22.0% DOWN
FY12/2019:

million¥132

millionSales
composition:

2.2%

FY12/2020 Overview

The number of renovation project completions decreased because of COVID-19, but sales of businesssites and other properties in the core real estate development business were generally as planned. As aresult, sales and earnings increased. We maintained a cautious stance in acquisitions of properties andworked to build infrastructure for real estate financial services. In addition, we established a committed
credit facility as one step to prepare to act quickly when the real estate market changes direction in thenext few years.

The performance of agricultural parks was down significantly because parks were asked by local
governments to close in April and May, normally the busiest time of the year, and the government also asked
people to stay home to prevent the spread of COVID-19. The number of visitors has been recovering steadily
due to marketing activities to promote the ability of parks to host people for outdoor activities involving nature.
In each month of the fourth quarter of 2020, the number of visitors was much higher than a year earlier.

08

Consolidated Financial Results

Consolidated Balance Sheet

Consolidated Cash Flows(¥ million)

Assets(¥ million)

Liabilities and net assets

Current assets

Non-current assets

Current liabilities
Net assets

Non-current liabilities

87,35287,352

79,157

79,157
Cash and deposits
Notes and accounts
receivable–trade
Real estate for salein process

Property, plantand equipment
Intangible assets
Investments
and other assets

16,51312,093
26,23476,92068,132

Cash and deposits
Notes and accounts
receivable–trade
Real estate for salein process

12,8173,820

10,431

10,617

5,436

23,944

Cash flows
from financing
activities-6,604

Cash flows
from operating
activities

14,4585,297
291

22,817-1,03016,513

34,637

52,79022,146

Property, plantand equipment
Intangible assets
Investments
and other assets

5,919
690

Cash andcash equivalents
at beginning of
period22,817

Cash andcash equivalents
at end of period

Cash flows
from investing
activities

13,77030,061

11,024

FY12/2019-end FY12/2020-end

FY12/2019-end FY12/2020-end

Consolidated Statement of Income

FY12/2020(¥ million)

Net sales

143,571

Non-operating
incomeOperatingprofitNet sales

136,319781

6,251
Operatingprofit4,730

Ordinary
profit

4,805

2,956

6,786

Extraordinary
income

6,768

5,913

Extraordinary
losses246

118,553

Profitattributabletoowners ofparentProfit before
income taxes

182

Non-operating
expenses

Cost of sales
Profitattributabletoowners ofparentOrdinary
profit200

Total income
taxes

746

SG&A
expensesProfitattributabletonon-controllinginterests

108

18,766

FY12/2020

FY12/201909

Corporate Data

Corporate Data (As of December 31, 2020)
Name

World Holdings Co., Ltd.

EstablishedFebruary 12, 1993

Share capital¥1,244 million

Representative

Eikichi Iida, Chairman and President

Number of
employees

22,717 (consolidated)

Major affiliated companies :36(32 consolidated subsidiaries, 4 non-consolidated subsidiaries) (As of December 31, 2020)
Human Resources andEducation Business

Real Estate BusinessConnecting people to jobs,
a new ways of working

Connecting people with homes shaping
the way we live through home creation

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
Address

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

Information andTelecommunications
Business

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

Bring people together through new styles ofcommunications with inforamtion technologies

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, and Other Businesses)

Executives
Eikichi Iida, Chairman and President
Toru Iwasaki, Director
Hidenori Yamada, Director
Shigeru Nakano, Director
Shinji Honda, Director
Hitoshi Yukawa, Director
Toshihiko Kanno, Director
Yoshihiko Mimasu, Director
Yuji Takai, Director
Masaaki Shiomi, Director
Masayoshi Nuki, 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)

Other Businesses

Finance10Stock Information (As of December 31, 2020)

Number of authorized shares: 54,000,000
Number of shares outstanding: 17,561,600
Number of shareholders: 4,386

Memorandum for Shareholders
Treasuryshares0.65%

Individuals/
others
21.64%

Foreignentities,
etc.
12.45%

Financial
institutions
19.02%

Shareholder
Composition

Financial
instruments
firms
0.55%

Other
entities
45.69%

Major Shareholders
Number ofshares held

Shareholding
ratio

Mirai Research Institute, Limited

7,965,000

45.64%

Custody Bank of Japan, Ltd. (Trust Account)

1,190,400

6.82%

810,000

4.64%

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

709,200

4.06%

Nanko Abe

500,000

2.86%

Eikichi Iida

496,500

2.84%

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

411,000

2.35%

THE NISHI-NIPPON CITY BANK, LTD.

300,000

1.71%

MUFG Bank, Ltd.

180,000

1.03%

JP MORGAN CHASE BANK 385781
Standing proxy: Mizuho Bank, Ltd., Settlement Sales Department

121,453

0.69%

Name of shareholders

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

Shareholding ratio is calculated after deducting treasury shares (113,477 shares).

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

101.7

Dividend per share (¥)
75.3

82.7

83.0

Business year

January 1 to December 31

Annual General Meetingof Shareholders

March

Shareholder registry andspecial accountadministrator

Mitsubishi UFJ Trust and Banking Corporation

Address

Securities Agency Division, Mitsubishi UFJ Trust and Banking
Corporation
1-1 Nikko-cho, Fuchu-shi, Tokyo, Japan
Contact: 0120-232-711 (toll-free in Japan)
Mailing address: ‌Securities Agency Division, Mitsubishi UFJ Trustand Banking Corporation, PO Box 29, New Tokyo
Post Office, 137-8081

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.

The World Holdings Website
The IR Information section of the World Holdings website has messages from senior executives,
information about the New Medium-term 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/

78.7

52.7

45.7
23.7
8.5

10.0

FY12/
2012

FY12/
2013

FY12/
2014

FY12/
2015

FY12/
2016

FY12/
2017

FY12/
2018

FY12/
2019

FY12/
2020

FY12/
2021

(forecast)

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

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