World Holdings Co.,Ltd · TSE:2429
World Holdings Co.,Ltd — Q1 2022 Earnings Presentation
32 slides from World Holdings Co.,Ltd's earnings presentation, May 12, 2022
Slide 1: FY2022 First Quarter Financial Results
Create a Sustainable World. FY2022 Financial Results First Quarter May 12, 2022 (Thu.) WORLD HOLDINGS CO., LTD. TSE Prime Market (2429)
Slide 2: Agenda
I. Sustainability ・The Purpose of the World Holdings Group … P3 ・ESG × SDGs … P5 ・Business Portfolio … P6 II. Summary of FY2021 First Quarter Financial Results ・Summary of Financial Results … P8 ・Changes in Segment Classification … P11 ・Overview of Business Results by Segment … P12 ・Financial Condit
Slide 3: The Purpose of the World Holdings
PurposeGroup The Purpose of the World Holdings 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, ther
Slide 4: The Ways We Live
The ways we work The ways we create communities Human Resources and Education Real Estate We want to help people of all kinds find jobs that Pleasant communities are essential for people to lead best match their skills and goals in order to enable enjoyable and fulfilling lives. By designing these t
Slide 5: ESG×SDGs
ESG×SDGs Provide products that make houses environmentally responsible Environment Agricultural Real Estate and pleasant as well as play a role in creating communities E Parks where people can live with confidence Help protect the environment and conserve the earth’s Agricultural Real Estate Parks r
Slide 6: 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 Products Human Resources Business Information
Slide 7: II. Summary of FY2022 First Quarter Financial Results
II. Summary of FY2022 First Quarter Financial Results 7
Slide 8: Summary of Financial Results
Summary of Financial Results ⚫ Performance surpassed the plan mainly due to the strength of the core Overall Human Resources and Education Business summary ⚫ A year for up-front investments as the first year of the five-year Medium- term Management Plan 2026 ⚫ Big increases in sales and earnings as
Slide 9: Summary of Financial Results
Summary of Financial Results ➢ Earnings were well above the plan because of strong earnings in the Human Resources and Education Business ➢ Real Estate Business earnings were down YoY but generally as planned because most sales are planned for the second half of 2022 (Unit: Million yen) 2021/1Q 2022
Slide 10: Analysis of Changes in Sales and Earnings
Analysis of Changes in Sales and Earnings ■ Major Components Net sales (Million yen) Human Resources and Education • Steady growth of existing businesses -285 • Continued to receive large orders • Entering new markets (automobiles, etc.) • Growth of subcontracting, a key strength, and higher product
Slide 11: Changes in Segment Classification Based on Strategies
Changes in Segment Classification Based on Strategies ➢ The core Human Resources and Education Business has been divided into the Products and Services segments with the goal of developing services into another core business alongside manufacturing (products). ➢ The Agricultural Parks Business has b
Slide 12: Overview of Business Results by Segment
Overview of Business Results by Segment (Unit: Million yen) 2021/1Q 2022/1Q 2022/1Q Against estimate YoY actual estimate actual Change Pct. Change Change Pct. Change Products Human Net sales 15,825 18,163 19,938 1,774 9.8% 4,113 26.0% Resources Segment profit 720 341 887 546 160.2% 167 23.2% Human B
Slide 13: Products Human Resources Business
Human Resources Products Human Resources Business and Education ⚫ Strong performance of the core manufacturing category ⚫ Used effective and carefully targeted marketing to receive large orders in the 5G, semiconductor, electronic component and other sectors ⚫ Started activities to provide services
Slide 14: Services Human Resources Business
Human Resources Services Human Resources Business and Education ⚫ In the core logistics sector, performance was as planned as the start-up of new locations in 2021 has gone well. ⚫ In the call center and light duty sector, performance was above the plan because of the receipt of subcontracting order
Slide 15: Real Estate Business
Real Estate Business Real Estate ⚫ While retaining a cautious stance as real estate prices remain high, this business is continuing its current activities while purchasing quality commercial properties and using M&A, rebuilding projects and other activities to increase the breadth of business activi
Slide 16: Information and Telecommunications Business
Information and Information and Telecommunications Business Telecommunications ⚫ Another period of big changes in the mobile phone shop sector as mobile phone carriers lower rates and offer new rate plans, such as plans solely for internet access ⚫ The number of phones sold increased but sales and e
Slide 17: Agricultural Park Business
Agricultural Agricultural Park Business Park ⚫ Pandemic safety measures in January and February and unfavorable weather in February held down the number of visitors, but the loss was smaller than one year earlier because of a recovery that started in March. ⚫ Many activities to increase the number o
Slide 18: Financial Condition B/S
Financial Condition B/S ⚫ Total assets increased due to purchase of real estate properties and acquisition of Dimples’ Co., Ltd. (increase in goodwill) Total assets Total assets Current 90,453 (+4,365) (Million yen) assets 97,269 105,215 100,000 ・Cash and deposits -2,762 million yen ・Notes and accou
Slide 19: III. Outlook for the Term Ending Dec. 2022
III. Outlook for the Term Ending Dec. 2022 19
Slide 20: FY2022 Business Forecast
FY2022 Business Forecast ➢ Forecast lower earnings in 2022, the first year of the new management plan, because this is a period for investments for growth in the following years. ➢ In the Human Resources and Education Business, there will be recruiting and training expenditures and IT system expendi
Slide 21: 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 consis
Slide 22: IV. Appendix
IV. Appendix Profile of World Holdings 22
Slide 23: Main Group Companies
Main Group Companies Human Resources and Education Business Real Estate Business The WORLD INTEC CO., LTD. WORLD RESIDENTIAL CO., LTD. “Ways We WORLD STAFFING CO., LTD. WORLD ICITY CO., LTD. Live” WORLD CONSTRUCTION CO., LTD. WORLD WISTERIA HOMES CO., LTD. JW SOLUTION CO., LTD. NICHIMO REAL ESTATE C
Slide 24: Group history and acquisitions
Acquired 100% ownership of Dimples’ Co., Ltd. 24 TSE Prime Market 2022 Information and Telecommunications Business (Sales directly to customers) Human Resources and Education Business Acquired 100% ownership of CREATION VIEW CO., LTD. 2021 (software) Acquired 100% ownership of WAKRAK, INC. (applicat
Slide 25: Human Resources and Education Business: 30,550 workers in service
Human Resources Human Resources and Education Business and Education Business process outsourcing and staffing services that seamlessly cover a broad range of business domains Design/ After-sales Sales directly R&D Development Manufacturing Logistics to customers service Tourism R&D Technology/SI Fa
Slide 26: Real Estate Business
Real Estate Business Real Estate Building an infrastructure able to adapt to any change in the business climate Conversion of Real estate for investment real estate to trust beneficiary Development Real estate revitalization rights Condominiums/Detached houses Renovation Real estate Commercial land
Slide 27: Information and Telecommunications Business
Information and Information and Telecommunications Business Telecommunications Mobile phone shop Corporate solutions The largest network of stores in Kyushu We propose the reduction of costs for electric power, Cell phone shops in Fukuoka, Saga, Oita, communications, etc. by selling our products to
Slide 28: Agricultural Park Business
Agricultural Agricultural Park Business Park Operation of nature-rich agricultural parks, etc. at 13 locations around Japan Operation of a total of 13 facilities, including 4 directly managed facilities and other entrusted facilities Deepen regional roots and contribute to the regional economy and j
Slide 29: Business Performance Trend
Business Performance Trend Used internal resources for enhancing Expansion based on balanced Medium-term governance management Management (New Medium-term Management (New Medium-term Plan 2026 Plan 2012 to 2016) Management Plan 2021) (100 millions of yen) (100 millions 1,688 of yen) Created business
Slide 30: New Medium-term Management Plan 2026 Targets
New Medium-term Management Plan 2026 Targets More than double ■ 2026 Targets operating profit ■ 2021 Results Net sales: ¥275.0 billion (up 77.8%) Net sales: ¥154.7 billion Operating profit: ¥15.0 billion (up 100.5%) Operating profit: ¥7.4 billion Payout ratio: 30% Payout ratio: 30% Unit: Million yen
Slide 31: Ethos Infused into the Logo
Ethos Infused into the Logo The “Ways We Live” Frontier creating new value Corporate group always If an idea of The blue “sphere” represents the centered around “people” “the Ways We Live" is realized, experience and trust we have the world will certainly become accumulated, while the yellow “person
Slide 32: Inquiries
Inquiries The “Ways We Live” 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. Norio N