[Japanese GAAP] November 9, 2020 Company name:  WORLD HOLDINGS CO., LTD. Stock code: 2429 Eikichi Iida, Chairman and President Representative: Shigeru Nakano, Director, Business Management Division Manager Contact: Tel: +81-92-474-0555 Listing: Tokyo Stock Exchange, First Section URL: http://www.world-hd.co.jp Scheduled date of filing of Quarterly Report: Scheduled date of payment of dividend: Preparation of supplementary materials for quarterly financial results:   Yes None Holding of quarterly financial results meeting: November 13, 2020 (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the First Nine Months of 2020 (January 1 to September 30, 2020) (1) Consolidated results of operations (Percentages represent year-on-year changes)
Regarding revisions to the dividend forecast, please refer to the press release titled "Notice of Revisions to Consolidated Forecasts and Dividend Forecasts" dated November 9, 2020. 3. Consolidated Forecast for 2020 (January 1 to December 31, 2020)
Regarding revisions to the consolidated forecast, please refer to the press release titled "Notice of Revisions to Consolidated Forecasts and Dividend Forecasts" dated November 9, 2020.
* Notes
(1) Changes in significant subsidiaries during the period (change in scope of consolidation):  Yes Newly added: 1 (JW Solution Co., Ltd.)  Excluded: 1 (HOEIKENSETSU Co., Ltd.) (2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes Note: Please refer to the section "2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements" on page 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 t he end of the period (including treasury shares) As of Sep. 30, 2020: 17,561,600 shares As of Dec. 31, 2019: 2) Number of treasury shares at t he end of the period As of Sep. 30, 2020: 113,377 shares
3) Average number of shares during the period Nine months ended Sep. 30, 2020:       17,279,556 shares Nine months ended Sep. 30, 2019: 16,836,299 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 f 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" on page 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 9, 2020), using the Timely Disclosure network (TDnet), and available on the Company's website.

1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
In the first nine months of 2020, the longest economic downturn since the global financial crisis continued in Japan because of U.S.-China trade friction and COVID-19. Economic activity is s slowly resuming and there are signs of an economic rebound, although the situation varies in different industries. Nevertheless, the economic condition is still challenging and the outlook remains unclear because there is still no end in sight for the COVID-19 crisis. Sales and earnings at the World Holdings Group in the first nine months of 2020 were lower than one year earlier because of COVID-19. However, the group's diversified operations spanning many industries minimized the impact of this crisis. Most significantly, the core Human Resources and Education Business achieved sales and earnings growth despite the unprecedented challenges created by the COVID-19 crisis. We are making investments to set the stage for more growth in 2021, mainly in the Human Resources and Education Business. In addition, in September we established a 10 billion yen committed facility with The Bank of Fukuoka, Ltd. for the flexible and stable procurement of funds needed for the growth of our businesses. In December, we plan to establish another 10 billion yen committed facility with The Nishi-Nippon City Bank, Ltd., which will result in loan commitments of 20 billion yen in total. These steps give us a sound financial base for M&A activity to expand the Human Resources and Education Business, purchasing properties in a timely manner in the Real Estate Business, and other activities. Net sales decreased 3.2% year on year to 98,682 million yen. Operating profit decreased 19.7% to 3,283 million yen, ordinary profit decreased 12.1% to 3,608 million yen, and profit attributable to owners of parent increased 13.2% to 3,010 million yen.
Factory Staffing Business
Sales and earnings were less than initially planned for the first nine months of 2020 because of the effects of the U.S.-China trade friction and COVID-19 crisis. In particular, there was a smaller than expected number of projects in some categories of the smartphone sector and in the automobile industry. However, performance was supported by ongoing activities to target business involving 5G mobile communications and by the strength of the logistics and other sectors due to the growth of purchases by people who are staying home for safety. Overall, sales increased but earnings declined from one year earlier. This business is making up-front investments to recruit more people, open more business sites and take other actions to support growth in the fourth quarter and afterward in two strong market sectors: semiconductors, chiefly involving 5G, and machinery. There are also investments in the logistics sector, including for training programs for people needed to open new business sites, to build a base for growth starting in 2021. As a result, sales were 38,651 million yen, up 5.6% year on year and segment profit decreased 8.8% to 1,676 million yen.
Technology Staffing Business
The workforce utilization rate declined briefly and expenses increased as the number of projects fell below the initially planned level because of COVID-19. But performance was supported by growth in the semiconductor manufacturing equipment, information and telecommunications services, construction engineering, and other industries. In addition, we were able to charge higher fees because of new and more advanced skills of personnel due to training programs. As a result, sales increased but were less than planned and earnings increased and exceeded the plan. This business added new training programs that match changes taking place in its markets, established a new training structure for giving the current workforce new and more advanced skills, and took other actions to be well positioned for growth. Sales were 12,650 million yen, up 0.5% year on year and segment profit increased 14.6% to 1,387 million yen.
R&D Staffing Business
The number of projects in the clinical research outsourcing sector decreased because of COVID-19 but all categories of the research personnel staffing sector performed well. Overall, sales and earnings were higher than one year earlier, with sales less than planned and earnings higher than planned. Furthermore, this business made investments for recruiting and other activities to build a base for more growth in 2021 in response to the increasing number of projects resulting from the success of highly effective marketing activities. Sales were 5,320 million yen, up 0.6% year on year, and segment profit increased 33.4% to 604 million yen.
Sales & Marketing Staffing Business
Staffing orders in the apparel category decreased because of COVID-19 but the light duty, general merchandise store and call center categories performed well. Furthermore, this business has become profitable because of the success of structural reforms that were implemented during the past few years. Sales and earnings were higher than one year earlier as earnings were well above the plan even though sales were below the plan. Sales were 2,897 million yen, up 8.3% year on year, and segment profit was 21 million yen, compared with a segment loss of 12 million yen one year earlier.
Real Estate Business
The COVID-19 crisis reduced the number of residences sold in the renovation business and caused delays in a project involving land for business use in the real estate development business. The result was sales and earnings that were below the plan and less than in the same period of 2019. We are purchasing properties very carefully while closely watching movements in real estate prices. At the same time, we are establishing a base for asset management and other financial businesses involving real estate. To position this business for the expected recovery in its markets in 2021 and switch to an offensive stance, we have taken actions that include the establishments of committed facilities for the speedy and flexible procurement of funds as mentioned above. The performance of each category of this segment was as follows. The real estate development business sold 38 condominium units, 19 detached houses and 9 sites for business use, resulting in property sales of 18,118 million yen. Sales from real estate brokerage and other activities totaled 1,483 million yen. In the renovation business, 430 residences were sold and sales were 8,859 million yen. In the prefabricated house business, sales were 1,448 million yen. Sales were 29,908 million yen, down 6.6% year on year and segment profit decreased 28.6% to 1,418 million yen.
Information and Telecommunications Business
In the mobile phone shop business, the largest component of this segment, the number of phones sold decreased because of restrictions on shop operations due to COVID-19. Operations were severely limited by COVID-19 in the corporate solutions business too. Although sales in this segment were less than planned, earnings were much higher than planned because of structural reforms that were completed in 2019 in order to make this segment more profitable. The result was lower sales than one year earlier but a good performance in terms of earnings. Sales were 7,059 million yen, down 26.2% year on year, and segment profit was 284 million yen, compared with a segment loss of 17 million yen one year earlier.
Others
Agricultural parks were forced to suspend operations in April and May, normally the busiest time of the year, in response to requests from local governments due to COVID-19. These temporary closures severely impacted the performance of these parks. As a result, sales and earnings were much lower than planned and one year earlier. Even after parks reopened, performance was held down for a while by the continuing reluctance of people to go out and by the suspension of operations of some park attractions and other activities. Agricultural parks responded by using appropriate measures to attract visitors, including the promotion of the ability of these parks to host people while avoiding close contact among visitors. Due to these initiatives, the performance of parks has been recovering steadily, including a big year-on-year increase in park attendance in September. Sales were 2,194 million yen, down 32.0% year on year, and there was a segment loss of 279 million yen, compared with a segment profit of 226 million yen one year earlier.
(2) Explanation of Financial Position
Assets
Total assets decreased 10,929 million yen from the end of 2019 to 76,423 million yen at the end of the third quarter of 2020. This was mainly due to an increase of 1,166 million yen in cash and deposits, decreases of 1,047 million yen in notes and accounts receivable-trade, 6,974 million yen in real estate for sale and 4,461 million yen in real estate for sale in process, and an increase of 1,133 million yen in investment securities.
Liabilities
Total liabilities decreased 14,164 million yen from the end of 2019 to 49,243 million yen. This was mainly due to decreases of 804 million yen in accounts payable-real estate business, 2,931 million yen in short-term borrowings, 570 million yen in accrued expenses, 8,326 million yen in advances received, 540 million yen in income taxes payable and 483 million yen in long-term borrowings.
Net assets
Net assets increased 3,234 million yen from the end of 2019 to 27,179 million yen mainly due to increases of 453 million yen in share capital, 455 million yen in capital surplus and 2,144 million yen in retained earnings.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
We forecast sales and earnings growth in 2020 but also expect sales and earnings to be less than in the initial plan for the year due to COVID-19. One reason is the temporary decline in the number of projects in the Human Resources and Education Business and the Real Estate Business. Another reason is the suspension of agricultural park operations in April and May, normally the busiest time of the year, in the Others segment because of requests from local governments. Consequently, we have revised the 2020 consolidated forecasts that were announced on February 10, 2020. For details, please refer to the press release titled "Notice of Revisions to Consolidated Forecasts and Dividend Forecasts" dated November 9, 2020.
2. Quarterly Consolidated Financial Statements and Notes

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

(Quarterly Consolidated Statement of Comprehensive Income)
(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
JW Solution Co., Ltd., which was a non-consolidated subsidiary in 2019, is included in the consolidated financial statements starting in the first quarter of 2020 because of the increasing significance of this company. JW Solution is classified as a significant subsidiary of World Holdings. HOEIKENSETSU Co., Ltd., which was a significant subsidiary, is no longer included in the consolidated financial statements from the first quarter of 2020 because World Holdings sold all shares of this company on March 16, 2020. The following information is provided even though these three actions were not a change in a significant subsidiary. WORLD INTEC AMERICA, INC., which was a non-consolidated subsidiary in 2019, is included in the consolidated financial statements starting in the first quarter of 2020 because of the increasing significance of this company. COMPAX Co.,Ltd., which was a non-consolidated subsidiary in 2019, is included in the consolidated financial statements starting in the first quarter of 2020 because of the increasing significance of this company. HOEI HOME CO., LTD., which is a subsidiary of HOEIKENSETSU Co., Ltd., is no longer included in the consolidated financial statements from the first quarter of 2020 because World Holdings sold all shares of HOEIKENSETSU, which was a consolidated subsidiary in 2019, on March 16, 2020.
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 for cases in which using estimated tax rates gives a noticeably irrational result.
Additional Information
The number of visitors has decreased at agricultural parks operated by consolidated subsidiary Farm Co., Ltd. and other organizations because of government requests for people to stay home and other actions in order to prevent the spread of COVID-19. The number of visitors has recovered somewhat following the end of the state of emergency. Accounting estimates for the impairment of non-current assets are based on the premise that demand for the use of these parks will continue to recover slowly and return to the pre-crisis level in 2021.
Segment Information
I. First nine months of 2019 (Jan. 1 – Sep. 30, 2019) 1. Information related to net sales and profit or loss for each reportable segment
agricultural parks, the operation of personal computer schools, the production of websites and other services. 2. The -1,595 million yen adjustment to segment profit (loss) includes elimination for inter-segment transactions of 26 million yen, and -1,621 million yen in corporate expenses that cannot be allocated to any of the reportable segments. Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of 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 purchase Not applicable.
II. First nine months of 2020 (Jan. 1 – Sep. 30, 2020)

1. Information related to net sales and profit or loss for each reportable segment agricultural 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 reportable segments. Corporate expenses mainly consist of general and administrative expenses that are not attributable to any of 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 purchase Not 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 the convenience of readers who prefer an English translation.