World Holdings Co.,ltd · TSE:2429
World Holdings Co.,ltd — Q2 2022 Earnings Presentation
41 slides from World Holdings Co.,ltd's earnings presentation, Aug 18, 2022
Slide 1: FY2022 Second Quarter Financial Results
Create a Sustainable World. FY2022 Financial Results Second Quarter August 18, 2022 (Thu.) WORLD HOLDINGS CO., LTD. TSE Prime Market (2429)
Slide 2: Contents
CONTENTS I II III Summary of FY2022 Outlook for the Term Medium-term Management Second Quarter Ending Dec. 2022 Plan Financial Results P.03 P.19 P.23 IV Appendix P.29 Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved 2
Slide 3: Summary of FY2022 Second Quarter Financial Results
I 4. Summary of Financial Results 5. First Half Performance vs. 2022 Plan 6. Components of Change in Net Sales 7. Components of Change in Operating Profit 8. Overview of Business Results by Segment 9. Overview of Net Sales by Segment 10. Overview of Operating Profit by Segment 11. Changes in Segment
Slide 4: Summary of Financial Results
Summary of Financial Results Sales and earnings up because of Net sales Operating profit Overall the strong performance of the summary Human Resources and Education ¥ 86.2 billion ¥ 4.6 billion Business +32.5% YoY +88.8% YoY Human Strong performance in all Net sales Operating profit Resources catego
Slide 5: First Half Performance vs. 2022 Plan
First Half Performance vs. 2022 Plan ◼ Sales and earnings were higher than in the first half of 2021. ◼ Sales/earnings higher than planned in the core Human Resources and Education Business as accurate marketing activities resulted in large orders reflecting current market trends. In the Real Estate
Slide 6: Components of Change in Net Sales
Components of Change in Net Sales ◼ In the Human Resources and Education Business, sales were strong in the semiconductor, electronic component, logistics and other sectors; vaccination centers and other sources of extra demand also contributed to the big increase in sales. ◼ In the Real Estate Busi
Slide 7: Components of Change in Operating Profit
Components of Change in Operating Profit ◼ In the Human Resources and Education Business, earnings increased because of the ability to handle large projects and progress with raising productivity, such as by using subcontracting contracts and providing training. ◼ In the Real Estate Business, closin
Slide 8: Overview of Business Results by Segment
Overview of Business Results by Segment ◼ The core Human Resources and Education Business surpassed the plan backed by growth of both the Products HR and Services HR businesses. ◼ In the Real Estate Business, performance exceeded the plan as some closings of property sales were moved up from the 2H
Slide 9: Overview of Net Sales by Segment
Overview of Net Sales by Segment ◼ Sales in the Human Resources and Education Business were supported by accurate marketing activities and a larger than planned number of large orders associated with current market trends. ◼ Sales in the Real Estate Business were strong, including the contribution o
Slide 10: Overview of Operating Profit by Segment
Overview of Operating Profit by Segment ◼ Higher earnings in the Human Resources and Education Business because of the use of subcontracting and teams, higher productivity due to the DX and other measures, and orders associated with extra sources of demand ◼ Earlier than planned sales of some high-m
Slide 11: Changes in Segment Classification
Changes in Segment Classification ◼ 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 become an independent
Slide 12: Products Human Resources Business
Human Resources and Education Business Products Human Resources Business ◼ Strong performances in the manufacturing, technology and R&D categories because of accurate marketing activities ◼ Semiconductor and electronic components categories remained strong; new orders for large projects and extensio
Slide 13: Services Human Resources Business
Human Resources and Education Business Services Human Resources Business ◼ In the core logistics category, new locations are performing as planned and activities are continuing to add more sales and customer service bases in this business sector. ◼ In the light-duty work and customer service categor
Slide 14: Real Estate Business
Real Estate Business Real Estate Business ◼ A solid performance including closings of some sales originally scheduled for the 2H ◼ Retaining a cautious stance because prices of real estate are remaining high while making steady progress with purchasing real estate by utilizing real estate M&A and th
Slide 15: Information and Telecommunications Business
Information and Telecommunications Information and Telecommunications Business Business ◼ Another period of major changes in Japan’s mobile phone shop sector because all carriers are lowering the cost of service plans and launching new plans solely for internet access. Fee income is decreasing as ra
Slide 16: Agricultural Park Business
Agricultural Park Business Agricultural Park Business ◼ Attendance in February was down YoY due to record-setting cold weather but was higher YoY in every other month. The number of 2Q visitors was a new all-time high. ◼ In April, this business became the contract manager of Ohashi Kogen Internation
Slide 17: Financial Condition B/S
Financial Condition B/S ◼ Current assets increased ¥8,562 million to ¥94,650 million mainly because of an increase in real estate for sale. ◼ Liabilities increased ¥12,275 million to ¥76,317 million mainly because of an increase in debt. ◼ Non-current assets increased mainly because of a ¥3,801 mill
Slide 18: Cash Flows
Cash Flows ◼ Negative operating cash flows because of the increase in real estate for sale ◼ Negative investing cash flows resulting from a new consolidated subsidiary ◼ Positive financing cash flows because of long-term borrowings Summary of 1H 2022 cash flows (Million yen) Cash flows from operatin
Slide 19: Outlook for the Term Ending Dec. 2022
II 20. Revisions to Forecasts for FY2022 21. Outlook by Business Segment 22. Shareholder Distributions Outlook for the Term Ending Dec. 2022 Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved 19
Slide 20: Revisions to Forecasts for FY2022
Revisions to Forecasts for FY2022 ◼ The 2022 sales and earnings forecasts have been increased because of the strong performance of the core Human Resources and Education Business and the larger than planned number of closings of real estate sales. ◼ Forecasting record-high sales, operating profit an
Slide 21: Outlook by Business Segment
Outlook by Business Segment ◼ In the Human Resources and Education Business, the sales and earnings plans were increased because strength in the semiconductor and electronic components categories and higher productivity due to the use of subcontracting and teams. ◼ In the Real Estate Business, the s
Slide 22: 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 23: Medium-term Management Plan
III 24. Medium-term Management Plan 25. Strategies of the Human Resources and Education Business 26. New Initiatives 27. Agricultural Park Business 28. Growth of the Agricultural Park Business Medium-term Management Plan Copyright © WORLD HOLDINGS CO., LTD. All Rights Reserved 23
Slide 24: Medium-term Management Plan 2026 Targets
Medium-term Management Plan ▍2026 Targets Net sales Operating profit Payout ratio ¥275.0 billion ¥15.0 billion 30% （+77.8%） （+100.5%） Operating Rapid growth of the Human 人材教育 Human Resources 不動産 Real Estate 情報通信 and Information 農業公園 Agricultural 営業利益 profit Resources and Education Business and Educa
Slide 25: Strategies of the Human Resources and Education Business
Human Resources and Education Strategies of the Human Resources and Business Education Business More growth by using two core business categories to cover a broad spectrum of market sectors Business development for expansion to more market sectors Market scale: Market scale: 6.5 trillion yen ＋α 3.5
Slide 26: New Initiatives: Acquisition of Dimples
Human Resources and Education Business New Initiatives Acquisition of Dimples and Expansion of the Service Category ◼ Dimples Co., Ltd. is engaged in the temporary and permanent placements of people with outstanding hospitality skills who work directly with customers and performs outsourced data-rel
Slide 27: The Ways We Live in the Agricultural Park Business
Agricultural Park Business Agricultural Park Business “The Ways We Live” in the Agricultural Park Business The ways we look to the Nature Region Children future Manager of 15 Close ties with An ideal educational agricultural parks communities environment for children Agricultural parks create new Ag
Slide 28: Growth of the Agricultural Park Business
Agricultural Park Business Growth of the Agricultural Park Business Increasing the importance of agricultural parks as an outdoor recreation and education facility ◼ The Agricultural Park Business became profitable three years after becoming part of the World Holdings Group. ◼ During the pandemic in
Slide 29: Appendix
IV 30. The Purpose of the World Holdings Group 31. The Ways We Live 32. Sustainability 33. Business Portfolio 34. Main Group Companies 35. History Appendix 36. Business Domains of the Human Resources and Education Business 37. Business Domains of the Real Estate Business 38. Information and Telecomm
Slide 30: 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 31: The Ways We Live
The Ways We Live Human The ways we create Resources and Education The ways we work Real Estate communities We want to help people of all kinds find jobs that best match Pleasant communities are essential for people to lead enjoyable their skills and goals in order to enable them to experience the an
Slide 32: Sustainability
Sustainability Provide products that make houses environmentally Real Estate Agricultural Parks responsible and pleasant as well as play a role in creating communities where people can live with confidence Help protect the environment and conserve the earth’s Environment Real Estate Agricultural res
Slide 33: 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 Real Estate Business Education 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 Products H
Slide 34: Main Group Companies
Main Group Companies Human Resources and Real Estate Business Information and Telecommunications Agricultural Park Education Business Business Business Products Human Services Human Resources Business Resources Business MIKUNI CO., LTD. WORLD RESIDENTIAL WORLD STAFFING CO., WORLD INTEC CO., LTD. WOR
Slide 35: History
History Company name changed to WORLD HOLDINGS CO., LTD. Stock listing Became a pure TSE 1st Establishment TSE Prime Market (JASDAQ) holding company Section 1981 1993 2003 2005 2008 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Acquired 100% ownership of Acquired 100% Human Resources a
Slide 36: Business Domains of the Human Resources and Education Business
Human Resources and Education Business Domains of the Human Resources Business and Education Business Business process outsourcing and staffing services that seamlessly cover a broad range of business domains Manufacturing domain Service domain Products Human Resources Business Services Human Resour
Slide 37: Business Domains of the Real Estate Business
Real Estate Business Business Domains of the 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 Ren
Slide 38: Information and Telecommunications Business
Information and Telecommunications Business Information and Telecommunications Business Mobile phone shop Corporate solutions The largest network of stores in Kyushu We propose the reduction of costs for electric Cell phone shops in Fukuoka, Saga, Oita, power, communications, etc. by selling our Kum
Slide 39: Agricultural Park Business
Agricultural Park Business Agricultural Park Business Operation of nature-rich agricultural parks, etc. at 15 locations around Japan Operation of a total of 15 facilities, including 4 directly managed facilities and other entrusted facilities Deepen regional roots and contribute to the regional econ
Slide 40: Business Performance Trend
Business Performance Trend (100 millions (100 millions of yen) of yen) FY2020 1,800 Human Resources and Education Business COVID-19 100 1,600 Real Estate Business FY2016 Listed on 1st 1,547 Information and Telecommunications Business 90 section of TSE 1,428 1,435 1,400 Agricultural Park Business 84
Slide 41: Inquiries
Inquiries No information in this presentation is provided for the purpose of soliciting purchases or sales of our stock. The “Ways We Live” Furthermore, opinions, forecasts and other information not based on historical facts represent our judgments at the time this presentation was prepared. We do n