FY2016 First Quarter Financial Results - WORLD ......2015 1Q 2016 1Q 医薬・バイオ化学臨床 1,151 1,248 (Million yen)-4.7％ YoY (Basedon monetary amount) 597 702 69 77 0

0Copyright © WORLD HOLDINGS CO.,LTD. All Rights Reserved

May 9, 2016 (Mon.)WORLD HOLDINGS CO., LTD.

Second Section of Tokyo Stock Exchange (2429)

FY2016 First Quarter Financial Results


Real estate business

Information and telecommunications business

Human resources and education business

Intensive Measures in 2016 and Their Progress

Enhancement of recruitment capability

Improving retention rate of employees

Job creation

External cooperation

Development-related

Renovation-related

New business

Growth strategy based on M&A

Development of a network of excellent stores

Expansion of the population of applicants ⇒ Joint briefing session involving all divisions

Enrichment of educational systems ⇒ Production of training programs for career improvement

Expansion of the business field ⇒ Diversification of employment channels in new fields

Promotion of collaborative business ⇒ Practical activities based on the alliance with the human resources department

Implementation of business plans for newly built apartments, and allocation of residential and business lots with appropriate scales Performance is better than the forecast, thanks to the busy season

(January to March) and favorable procurement.

Decrease of unprofitable stores, and development of highly hospitable personnel

New business is being assessed.

M&A projects are being discussed in detail.


Ⅰ. Summary of FY2016 First Quarter Financial Results

Ⅱ. FY2016 Business Forecasts


Ⅰ. Summary of FY2016 First Quarter Financial Results


*Announced on February 3, 2016

Sales, operating income, ordinary income, and net income all progressed as planned. Especially, profits have been healthy, with their progress rates toward the full-year forecast

exceeding 25%. Performance declined year on year, mainly because the sale of large-scale real estate in the real

estate business was concentrated in 1Q of the previous term, but progress rates toward the full-year forecast are as planned.

First Quarter Summary

Unit: Million yen, %

YOY

Change Pct. Change

Net sales 31,212 22,726 -8,486 -27.2 100,111 22.7

Operating income 2,819 1,662 -1,157 -41.0 6,275 26.5

Ordinary income 2,803 1,637 -1,165 -41.6 6,153 26.6Net income attributable toowners of parent 1,895 1,015 -880 -46.5 3,814 26.6

FY2015/1Qactual

FY2016/1Qactual

Full-yearforecast*

Ratio to full-year forecast


*Announced on February 3, 2016

Change Pct. change

Net sales 6,649 6,825 176 3 32,571 21.0Segment income 490 476 -13 -3 2,316 20.6

Profit margin 7.4% 7.0% －－ 7.1% －

Net sales 2,290 2,462 171 8 10,699 23.0Segment income 271 311 40 15 952 32.7

Profit margin 11.8% 12.7% －－ 8.9% －

Net sales 1,151 1,248 97 8 5,650 22.1Segment income 188 105 -83 -44 565 18.6

Profit margin 16.4% 8.4% －－ 10.0% －

Net sales 823 1,255 432 53 5,525 22.7Segment income 39 62 23 59 296 20.9

Profit margin 4.8% 5.0% －－ 5.4% －

Net sales 111 131 19 18 547 23.9Segment income 3 5 1 30 26 19.2

Profit margin 3.6% 3.9% －－ 4.8% －

Net sales 16,864 8,719 -8,145 -48 37,092 23.5Segment income 2,215 979 -1,235 -56 3,921 25.0

Profit margin 13.1% 11.2% －－ 10.6% －

Net sales 3,320 2,082 -1,238 -37 8,056 25.8Segment income △35 47 82 － 200 23.5

Profit margin － 2.3% －－ 2.5% －

Net sales 31,212 22,726 -8,486 -27 100,111 22.7Elimination or corporate △353 -325 28 － △2,003 －Operating income 2,819 1,662 -1,157 -41 6,275 26.5

Operating margin 9.0% 7.3% －－ 6.3% －

Human Resourcesand Education

Business

Real Estate Business

Information andTelecommunications

Business

Total

Sales & MarketingBusiness


Business


O thers

Technology Business

R&D Business

Rario to full-year forecast

Factory Business

YoYFY2015/1Qactual

FY2016/1Q actual

Full-yearforecast for4Q of fiscal

2016*

Sales grew in the human resources and education business. The performance of the real estate business declined by the amount that corresponded to the sale of large-scale

real estate (land sale in lots) in the previous term. Progress rates toward the full-year forecast are as planned, catching up with business trends by each segment.

Sales by Business Segment



Human Resources and Education Business

昨年度予算今年度

ファクトリー事業


テクノ事業


R&D事業


セールス＆マーケティング事業

昨年度予算今年度昨年度予算今年度昨年度予算今年度昨年度予算今年度

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

The budgets have been allocated as planned among the major human resources business segments. Especially, segment income steadily increased by 30%.

Sales and segment income improved steadily.

Segment income significantly improved after cost improvement.

Performance progressed steadily considering budget, despite

increase in investment on human resources for further expansion.

Significantly expanded thanks to acquiring more clients and

cooperation among segments.

*Upper panel: sales Lower panel: segment income

Factory Business Technology Business R&D Business Sales & Marketing Business

FY 2015

Budget FY 2016

FY 2015

Budget FY 2016

FY 2015

Budget FY 2016

FY 2015

Budget FY 2016

FY 2015

Budget FY 2016

FY 2015

Budget FY 2016 FY

2015Budget FY

2016FY

2015Budget FY

2016


Real Estate and Information and Telecommunications Businesses


不動産ビジネス



情報通信ビジネス


１Q ２Q ３Q ４Q

Transfer is mainly conducted in the second half in this term.

Operating income recovered due to business investment in the previous

year.

Our budget indicates that the transfer of real estate would be conducted mainly in the second half, but the performance of the real estate has been healthy as a whole. As for the information and telecommunications business, profit is recovering steadily due to business investment in the previous year.

*Upper panel: sales Lower panel: segment income

Real Estate Business Information and Telecommunications Business

FY 2015 Budget FY 2016



Budget FY 2016FY

2015


Factory Business

<Sales composition by business segment and the number of staff>

The semiconductor section shows favorable performance, as the number of smartphone-related orders is healthy.

The distribution section shows sales growth, as large-scale orders have been placed.

(Million yen)

＋77.5％

＋72.0％

- 3.9％

- 44.8％

- 55.3％

＋26.9％

- 11.2％

YoY(Based on monetary amount)

6,649

Sales composition by business segment (%)

5,736 6,288

662715

1,5091,072

0

2,000

4,000

6,000

8,000

10,000

2015 1Q 2016 1QAverage other companies/acceptanceSegment change adjustmentNumber of staff

(Persons)

*The number of staff is a three-month average, external staff members accepted from other companies are included.*Number of staff included only staff members who are engaged in on-site operation work.

7,907

Variation in the number of staff (3-month average)

8,075

Up 2.7%

0

200

400

600

800

2015 1Q 2016 1Q

Operating income

(Million yen)

490

6,825

476

23.2% 21.7%

14.4%24.0%

9.0%4.9%8.5%14.6%14.0%6.1%5.4%6.7%

25.5% 22.0%

0

2,000

4,000

6,000

8,000

2015 1Q 2016 1Q電気・電子物流自動車

半導体機械環境エネルギー

その他

Electric & Electronics

Semiconductors

Others

Logistics

Machinery

AutomobilesEnvironment & Energy

Down 2.8%


Technology Business

0

100

200

300

400

2015 1Q 2016 1Q

Performance has been healthy, mainly in the fields of automobiles, semiconductors, software development, and construction, where it is necessary to hire dispatched workers.

The number of engineers in design and development has increased in the fields of automobiles, semiconductors, and software.

The number of factory engineers has increased greatly mainly in the field of smartphone-related semiconductors.


694 743

658696

217 224

0

500

1,000

1,500

2,000

2015 1Q 2016 1QSegment change adjustmentDesign developmentProduction technology

43.1% 45.2%

16.1%16.4%

5.0%4.8%5.6%5.6%

30.2%28.0%

0

1,000

2,000

3,000

2015 1Q 2016 1Q半導体情報通信サービス

機械自動車

その他

2,2902,462

(Million yen)

＋7.7％

＋9.0％

＋12.7％

＋4.0％



(Persons)


1,5691,663

Up 7.5%

Operating income

(Million yen)

271- 0.2％

311

Semiconductors

Machinery

Others

Information and telecommunications business

*The number of staff is a three-month average.*Number of staff included only staff members who are engaged in on-site operation work.

Up 15.0%

Automobiles


R&D Business

The R&D business has grown steadily, as pharmaceutical companies and generic drug makers with favorable performance invested in research.

The PV (pharmacovigilance) business has grown significantly, by increasing new clients through the cooperation with existing CRO enterprises.



33.6％ 29.9％

40.9％47.7％

25.5％22.4％

0

500

1,000

1,500

2015 1Q 2016 1Q

医薬・バイオ化学臨床

1,1511,248

(Million yen)

- 4.7％


597702

69

77

0

200

400

600

800

1,000

2015 1Q 2016 1Q

R&D在籍 DOT在籍

(Persons)


666

*PV=Abbreviation of PharmacovigilanceTo appropriately and swiftly collect and analyze safety information, such as the side effects of pharmaceutical products.

779

0

100

200

2015 1Q 2016 1Q

Operating income

(Million yen)

188Up 8.4%

＋26.5％

- 11.0％

105

Pharmaceutical/biotechnology

Chemical Clinical R&D staff DOT staff

*The number of staff is a three-month average. Number of staff included only staff members who are engaged in on-site operation work.

Down 44.3%


63.1％

40.0％

36.9％

60.0％

0

500

1,000

1,500

2015 1Q 2016 1Q

CB OCS

823

1,255

Sales & Marketing Business


CB: Sales grew, because of the increase of direct transactions with department stores and the conclusion of large-scale contracts with mass retailers.

OCS: The number of light-duty workers increased considerably, through the enhancement of cooperation with the distribution section of the factory business.


0

20

40

60

80

2015 1Q 2016 1Q

Operating income

(Million yen)

39

Up 59.0%

(Million yen)

+ 71.9％

+ 50.9％


Up 52.5%

6881,029

560

997

0

500

1,000

1,500

2,000

2,500

2015 1Q 2016 1Q

CB OCS

1,248

2,026


62

*The number of staff is a three-month average.*Number of staff included only staff members who are engaged in on-site operation work.



<Sales composition by business segment and the number of units supplied and to be transferred>

Development-related: Apartments and land lots for residential and business uses have been sold healthily.

Renovation-related: Sales have grown steadily, exceeding the estimated value, thanks to the busy season (January to March).

Prefabricated houses-related: We concentrated on the improvement of the business base.

87.2%

72.3%

23.3%

0

5,000

10,000

15,000

20,000

2015 1Q 2016 1QPrefabricated houses-relatedRenovation-relatedDevelopment-related

12.8%

4.4%

(Million yen)


-6.2 ％

- 57.1 ％


*The prefabricated house business was established in 4Q of 2015, as Omachi World Co., Ltd. became a subsidiary.

16,864

8,719

0

1,000

2,000

3,000

2015 1Q 2016 1Q

Operating income

(Million yen)

2,215

979

33

173 175.9

0

100

200

300

400

500

600

2015 1Q 2016 1Q 2015 1Q 2016 1Q

新築分譲戸建てリノベーション

Number of supplied and untransferred properties

(No. of properties)Supplied properties

(total)

Untransferredproperties

70

307.9

222

*The supplied properties were included at the time when their sale began. The untransferred properties include the already-contracted ones. For JV projects, proportionally distributed number was used.

205

233132

105.1

60

Down 55.8%

Down 48.3%

327.1

Sale of newly built houses Renovation


Information and Telecommunications Business

<Variations in sales and the number of stores>

The investment phase ended, and this business moved into the black in the 1st quarter. Stores were relocated to convenient places, new stores were opened, and highly hospitable

personnel were cultivated for developing a network of excellent stores.

Sales for each target

(50)

0

50

100

2015 1Q 2016 1Q

Operating income

-35

(Million yen)

91.8%

88.1%

8.2%

11.9%

0

1,000

2,000

3,000

4,000

2015 1Q 2016 1Q

個人法人

3,320

2,082

(Million yen)

-8.5％

YoY(Based on monetary amount)Down

37.3%

《Enriched product lineup》

47

-39.9％

Individual Corporation


Real estate for sale in process increased.

11,897 12,15411,519 12,347

32,913 35,422

0

20,000

40,000

60,000

80,000

2015/12末 2016/12 1Q末

純資産固定負債流動負債

5,927 6,548

50,402 53,375

0

20,000

40,000

60,000

80,000

2015/12末 2016/12 1Q末

固定資産流動資産

Current assets

Current liabilities

53,375（+2,972）

35,422（+2,508）

Total liabilities/net assets Increase in short-term debt* 3,655 million yen(Million yen)

(Million yen) Total assets

56,329 59,923

56,329 59,923

Net assets 12,154（+256)

Increase in retained earnings 251 million yen

Financial Condition B/S

Increase of real estate for sale in process 4,499 million yen

*Fund for the purchase of real estate for sale

End of FY2015 End of FY2016 1QFixed assets Current assets

End of FY2015 End of FY2016 1QNet assets Fixed liabilities Current liabilities


II. FY2016 Business Forecasts


Summary of FY2016 Business Forecast

Change from forecast

Unit: million y en, %Change Pct. change

Net sales 87,984 100,111 12,127 13.8

Operating income 5,137 6,275 1,138 22.2

Ordinary income 5,133 6,153 1,019 19.9Net income attributable to

owners of parent 3,810 3,814 3 0.1

EPS (y en) 228.05 228.27 0.2 0.1

Dividend per share (y en) 45.7 68.5 22.8 49.9

FY2015 actualFY2016forecast*

Sales and profits are all estimated to make a record high. The reason why current net income decreased in comparison to ordinary income is that preferential tax treatment

ended.

*Announced on February 3, 2016.


Business Forecast by Segment

Change Pct. change

Net sales 26,910 32,571 5,661 21.0

Segment income 1,801 2,316 515 28.6

Profit margin 6.7% 7.1% －－

Net sales 9,547 10,699 1,152 12.1

Segment income 989 952 -36 -3.7Profit margin 10.4% 8.9% －－

Net sales 4,755 5,650 894 18.8Segment income 518 565 47 9.1


Net sales 3,972 5,525 1,552 39.1Segment income 218 296 77 35.5


Net sales 491 547 56 11.4Segment income 15 26 10 70.3


Net sales 31,785 37,092 5,307 16.7Segment income 3,061 3,921 860 28.1


Net sales 10,522 8,056 -2,466 -23.4Segment income 4 200 195 4,054.5


Net sales 87,984 100,111 12,127 13.8Elimination or corporate -1,472 -2,003 －－

Operating income 5,137 6,275 1,138 22.2Operating margin 5.8% 6.3% －－

FY2016 forecast* Change from forecast

HumanResources

andEducationBusiness

Real EstateBusiness

FY2015 actual

R&D Business


Business

Total

Sales & MarketingBusiness


Business


Others

Factory Business

Technology Business


*Announced on February 3, 2016.

Although it was reported that some manufacturers would reduce output, our business base is stable because of the risk hedge through the coverage of various industries and the trusting relationships with clients as a top company. Accordingly, we think

that our business performance will not be significantly affected.


Shareholder Returns

From fiscal 2016, we aim to achieve a payout ratio of 30%.

(Yen) Dividend per share

4.33 4.5 4.58.5 10.0

23.7

45.7

68.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016forecast

*The forecast and dividend estimated are based on the information that the Company has and a certain assumption that is considered reasonable. There is a possibility that the actual results may largely differ based on various factors.


Regarding the Kumamoto Earthquake

We would like to express our heartfelt condolences to the victims of the earthquakes

that have been occurring intermittently around Kumamoto Prefecture since April 14,

2016. Immediately after the occurrence of the earthquake, we started giving support as

much as possible, while grasping the situation of damaged areas, in cooperation with

the business establishments, employees, and business partners of our corporate group.

After the Great East Japan Earthquake, we employed and supported victims. From this

experience, we think that we need to take various measures and actions, and give

support also in Kumamoto Prefecture.

We will continue our activities for supporting victims and restoring Kumamoto

Prefecture, while taking responsibility as an enterprise headquartered in Kyushu.


Yukari Tsuda

Public Relations and Investor Relations Department

Corporate Planning Division

WORLD HOLDINGS CO., LTD.

TEL 03-3433-6005

E-MAIL irinfo＠world-hd.co.jp

URL http://www.world-hd.co.jp/

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

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FY2016 First Quarter Financial Results - WORLD ......2015 1Q 2016 1Q 医薬・バイオ 化学 臨床 1,151 1,248 (Million yen)-4.7％ YoY (Basedon monetary amount) 597 702 69 77 0

FY2016 First Quarter Financial Results - WORLD ......2015 1Q 2016 1Q 医薬・バイオ化学臨床 1,151 1,248 (Million yen)-4.7％ YoY (Basedon monetary amount) 597 702 69 77 0