World Holdings Co.,ltd · TSE:2429
World Holdings Co.,ltd — Q1 2024 Earnings Presentation
43 slides from World Holdings Co.,ltd's earnings presentation, May 10, 2024
Slide 1: FY2024 First Quarter Financial Results
Create a Sustainable World. FY2024 Financial Results First Quarter May 10, 2024 (Fri.) WORLD HOLDINGS CO., LTD. TSE Prime Market (2429)
Slide 2: Contents
CONTENTS 01 02 03 Summary of FY2024 Outlook for the Term Appendix First Quarter Ending December About Us Financial Results 2024 P.3 P.14 P.20 © WORLD HOLDINGS CO., LTD. 2
Slide 3: Summary of FY2024 First Quarter Financial Results
P.4 Summary of Financial Results 01 P.5 Overview of Business Results P.6 Overview of Business Results by Segment P.8 Products Human Resources Business P.9 Services Human Resources Business Summary of FY2024 P.10 Real Estate Business First Quarter P.11 Information and Telecommunications Business Fina
Slide 4: Summary of Financial Results
Summary of Financial Results Despite the challenging business climate in the primary business segments early in the quarter, the performance of the Human Resources and Education Business was supported by strategic personnel shifts, effective labor management, cost controls and other measures. In the
Slide 5: Overview of Business Results
Overview of Business Results While the first quarter results consist of a planned increase in sales and a decrease in earnings, earnings significantly exceed the plan. In the Human Resources and Education Business, performance was supported by strategic personnel shifts and other measures amid a
Slide 6: Overview of Business Results by Segment (1)
Overview of Business Results by Segment (1) FY2023 1Q FY2024 1Q FY2024 1Q Against estimate YoY (Million yen) Actual Estimate Actual Change Pct. change Change Pct. change Human Resources Net sales 33,934 41,996 44,114 2,118 5.0% 10,179 30.0% and Education Segment profit 932 19 367 347 - -565 -60.6% B
Slide 7: Overview of Business Results by Segment (2)
Overview of Business Results by Segment (2) Net sales (Million yen) Segment profit (Million yen) YoY YoY Agricultural Park Business Agricultural Park Business Information and Telecommunications Business +25.4% -67.1% Information and Telecommunications Business Against estimate Against estimate Real
Slide 8: Products Human Resources Business
Products Human Resources Business Factors such as the continued slowdown in the semiconductor sector, the Noto Peninsula Earthquake, and the shutdowns in the automobile industry contributed to the adverse business climate as the quarter started. By leveraging our strength in covering multiple in
Slide 9: Services Human Resources Business
Services Human Resources Business The first quarter started with a downturn following the peak year-end season, but sales and earnings increased and were both higher than initially planned. A consistent growth in the logistics e-commerce sector and Yamato Staff Supply, which joined the World Hol
Slide 10: Real Estate Business
Real Estate Business We have been -maintaining a cautious stance in order to ensure the optimum timing for both purchasing and sales, given the risk associated with persistently high real estate prices. Sales and earnings significantly exceeded the plan, as some properties originally planned for
Slide 11: Information and Telecommunications Business
Information and Telecommunications Business We have been adopting a scrap-and-build approach for the mobile stores to improve efficiency amid the significant changes in Japan’s mobile phone shop sector. Sales promotions have been reinforced to address the last-minute demand caused by the enactme
Slide 12: Agricultural Park Business
Agricultural Park Business Although visitor numbers are typically low during the winter due to the nature of outdoor facilities, the visitor number in the first quarter exceeded the plan due to the mild weather with little rain in January and February. (In March, the cold weather and rain led to a
Slide 13: Financial Condition B/S
Financial Condition B/S Total Aassets increased mainly due to increases of a ¥1.2 billion increase in real estate for sale and a ¥2.4 billion increase in cash and deposits. In liabilities, interest-bearing debt increased by ¥7.0 billion, and net assets decreased by ¥1.6 billion due to dividend p
Slide 14: Outlook for the Term Ending December 2024
P.15 2024 Business Strategies 02 P.16 FY2024 Outlook P.17 Outlook by Business Segment P.18 2022-2024 Quarterly Performance and Forecasts P.19 Shareholder Distributions Outlook for the Term Ending December 2024 P.14 © WORLD HOLDINGS CO., LTD. 14
Slide 15: 2024 Business Strategies
2024 Business Strategies Use the business foundation established in prior years for more growth by benefiting from synergies across all group companies and business segments. Corporate • In the key Human Resources and Education Business, aim for growth of the Products Human Resources Business and,
Slide 16: FY2024 Outlook
FY2024 Outlook The full-year outlook remains unchanged from the initial plan. First-quarter result exceeded the plan mainly due to the early delivery of some real estate properties. Forecast higher sales based on factors including the outlook for a semiconductor sector recovery starting in the s
Slide 17: Outlook by Business Segment
Outlook by Business Segment Actual for the term Estimates for the term YoY (Million yen) ended Dec. 2023 ending Dec. 2024 Change Pct. change Human Resources Net sales 158,403 191,601 33,197 21.0% and Education Segment profit 4,872 5,710 838 17.2% Business Profit margin 3.1.% 3.0% Net sales 101,246 1
Slide 18: 2022-2024 Quarterly Performance and Forecasts
2022-2024 Quarterly Performance and Forecasts ▍Net Sales and Operating Profit (Million yen) Agricultural Park FY2022 FY2023 FY2024 Forecast Net sales Information and Telecommunications Net sales: Real Estate Net sales: ¥ 213,742 million 252,085 million Net sales: ¥ 90,000 Human Resources and Educati
Slide 19: Shareholder Distributions
Shareholder Distributions The basic policy for profit distributions is to distribute profits in a manner that reflects results of operations while retaining sufficient earnings for future business operations and for making business operations stronger. For dividends, the goal is to stably and cons
Slide 20: Appendix
P.21 The Purpose of the WORLD HOLDINGS Group P.22 The Four Key Elements of WORLD HOLDINGS and its Stability 03 P.23 Sustainability Initiatives P.24 History P.25 Business Portfolio P.26 Main Group Companies P.27 Business Segment Sales and Operating Profit P.28 Goals for the Two Core Businesses P.29 H
Slide 21: The Purpose of the WORLD HOLDINGS Group
The Purpose of the WORLD HOLDINGS Group Contribute to happiness and a sustainable society through the creation of a variety of ways we live worldwide Enabling people worldwide to enjoy even more energetic and fulfilling lives will create happiness and contribute to progress in many ways, thereby hel
Slide 22: The Four Key Elements of WORLD HOLDINGS and its Stability
The Four Key Elements of WORLD HOLDINGS and its Stability The ways we work The ways we create communities We want to help people of all kinds find jobs that best Pleasant communities are essential for people to lead enjoyable match their skills and goals in order to enable them to and fulfilling liv
Slide 23: Sustainability Initiatives
Sustainability Initiatives Materiality (important issue) Value creation Purpose Support the sustainable advancement of society by providing many jobs. Human Resources Use high-quality training programs to develop the skills of employees in order Create the ways we work and Education the creation
Slide 24: History
24 2022 Moved to TSE Prime Market 1.0 COVID-19 crisis -4.1 Entry into Agricultural Park Business 2017 Agricultural Park FARM became a member of the WORLD HOLDINGS Group Listed on TSE 1st Section 2016 (3 months after 2nd Section listing) Shifted to a holding company structure 2014 (Company name chang
Slide 25: Business Portfolio
Business Portfolio Create a Sustainable World. Use a well-balanced business portfolio for rapid growth and activities that help create a sustainable world Human Resources and Education Business Real Estate Business 私たちは持続可能な開発目標（SDGs）を支援しています Real Estate The “Ways We Live” Information and Telecommun
Slide 26: Main Group Companies
Main Group Companies 50 affiliated companies Human Resources and Education Business Information and 人材教育ビジネス Real不動産ビジネス Estate Business 情報通信ビジネス Agricultural Park Business Telecommunications Business Products Human Services Human Resources Business Resources Business WORLD INTEC CO., LTD. WORLD STA
Slide 27: Business Segment Sales and Operating Profit
Business Segment Sales and Operating Profit Risk diversification and benefits of mutually complementary activities are the characteristics of the multi-business portfolio of WORLD HOLDINGS consisting mainly of the Human Resources and Education Business and the Real Estate Business. Neｔ sales (Mill
Slide 28: Goals for the Two Core Businesses
Goals for the Two Core Businesses Aiming for growth backed by a balanced business portfolio centered on the Human Resources and Education Business and the Real Estate Business Create a Sustainable World. Human Resources and Education Business Real Estate Business Use a well-balanced business portfol
Slide 29: Human Resources and Education Business
Human Resources and Education Business Business process outsourcing and staffing services that seamlessly cover a broad range of business domains Labor management is a key strength Manufacturing domain Service domain Products Human Resources Business Services Human Resources Business After-sales ser
Slide 30: Training Programs
Training Programs Continue upgrading and expanding leadership, technology and other training programs and provide support for employees to advance their careers or change career paths. Establish a nationwide network of 10 training centers for upgrading technological skills of employees. In the
Slide 31: Consortium Collaboration Centered on Outsourcing
Consortium Collaboration Centered on Outsourcing Our goal is sustainable growth by using collaboration with other human resources companies and partnerships with clients, all centered on outsourcing. Co-sourcing A higher level of outsourcing by working even more closely with customers as a good pa
Slide 32: Use of the Consortium Model
Use of the Consortium Model Customers outsource tasks to WORLD HOLDINGS, which then performs work jointly with local human resources companies and by collaborating with partner companies of client companies. Horizontal utilization of knowhow in the logistics sector at JW SOLUTION, TOHO WORK and
Slide 33: Collaboration with Prominent Companies (1)
Collaboration with Prominent Companies (1) Alliances with prominent companies in other industries are used to play a role in industry reforms and innovation and in making improvements at alliance partners. Growth of WORLD HOLDINGS is another goal. For tourism industry progress and dealing with Ass
Slide 34: Collaboration with Prominent Companies (2)
Collaboration with Prominent Companies (2) Established a strategic business alliance with Yamato Holdings Co., Ltd. Yamato Staff Supply joins the WORLD HOLDINGS Group Strategic Business Alliance The Next Steps YAMATO YAMATO YAMATO YAMATO HOLDINGS STAFF SUPPLY HOLDINGS STAFF SUPPLY Leader in “las
Slide 35: Real Estate Business
Real Estate Business Building an infrastructure able to adapt to any change in the business climate Real estate trust Real estate for investment beneficiary rights Development Real estate revitalization Real estate finance Condominiums/Detached houses Renovation Asset management Commercial land deve
Slide 36: Real Estate Business: Sustainable Growth Due to Thorough Risk Management
Real Estate Business: Sustainable Growth Due to Thorough Risk Management This business is using prudent management of operations for sustainable growth while minimizing risk exposure. Purchasing carefully selected high-quality properties while retaining a cautious stance about real estate acquis
Slide 37: Real Estate Business: Purchasing Skills and Partnerships with Major Companies
Real Estate Business: Purchasing Skills and Partnerships with Major Companies for Large Development Projects Using land development expertise, a core strength, and working with major real estate companies at large development projects Strength in land development Development projects with major re
Slide 38: Information and Telecommunications Business
Information and Telecommunications Business Mobile phone shop Corporate solutions We propose the reduction of costs for electric The largest network of stores in Kyushu power, communications, etc. by selling our Mobile phone shops in Fukuoka, Saga, Oita and Nagasaki Prefectures products to corporati
Slide 39: Agricultural Park Business: Use of Revitalization Expertise
Agricultural Park Business: Use of Revitalization Expertise at Four Directly Managed Parks to Receive Contracts to Operate More Parks WORLD HOLDINGS plans to increase earnings of managed facilities by utilizing revitalization and profitability know-how acquired at the four directly managed facilit
Slide 40: Business Performance Trend
Business Performance Trend (Billion yen) (Billion yen) 300.0 3000 Agricultural Park Business 12.0 12.0 Information and Telecommunications Business 2020／12期 Real Estate Business 213.7 252.0 250.0 2500 10.0 10.0 Human Resources and Education Business FY2020 10.3 FY2016 Listed on 1st section 183.6 Oper
Slide 41: Progress of Medium-term Management Plan
Progress of Medium-term Management Plan First half of the plan was building a sound base, second half is using this base for growth FY2026 Targets During the first two years, growth of the education business and expansion of subcontracting/outsourcing to more industries along Net sales Operating p
Slide 42: Actions for Management with Priority on the Cost of Capital and Stock Price
Actions for Management with Priority on the Cost of Capital and Stock Price The FY2023 ROE was 16.4%, which is higher than the FY2026 ROE forecast of 16.2%. The plan is to maintain the ROE at this level. The PBR is currently more than one and the goal is to earn an even higher PBR by increasing
Slide 43: Inquiries
Inquiries No information in this presentation is provided for the purpose of soliciting purchases or sales of our stock. Furthermore, opinions, forecasts and other information not based on historical facts represent our judgments at the time this presentation was prepared. We do not guarantee the ac