fy2012 third quarter financial results€英訳版】2012年...overview of fy2012 third quarter 5...

FY2012 Third Quarter Financial Results

November 7, 2012World Intec Co., Ltd.

JASDAQ (2429)

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved


： Three Core Businesses

R&D ・・・・・・ Dispatch of researchersTechnology ・・・・・・・ Dispatch of engineersFactory ・・・・・・ Dispatch of manufacturers,

Contract workCB ・・・・・・・・ Dispatch of sales personnelConstruction ・・・ Dispatch of construction

managing engineersAdministrative ・・・・・ Personnel trainingcontractOverseas ・・・・・・・・・ Parts procurementRepair ・・・・・・・・ Repair service

Overseas business…..Dispatch of manufacturers

Education business・PC school operations, educational materials,

software sales

Advan Co., Ltd.

・Map information sales ・Entrusted system development ・Disabled persons’ employment support, education

・Comprehensive human resources service・Education consulting

(non-consolidated)

・Condominium business ・Condominium management business・Contract selling business

・ Contract selling business・Real estate consulting business

Group

World Online Co., Ltd.

e-support, inc.

Network Solution Co., Ltd.

Mobile Service Co., Ltd.

Best IT Business Co., Ltd.

・Softbank shop business・WILLCOM shop business

・au shop business

・Corporate business・OA equipment sales

・Call center business

・Corporate business

・Selling agency・Contract selling business

World Resiselling Co., Ltd.

・Condominium business ・Selling agency・Contract selling business

World iCity Co., Ltd.

・Selling agency・Contract selling business

Suncity Selling Co.,, Ltd.

WORLD INTEC FUKUSHIMA CO., LTDAdministrative contract business

WORLD INTEC SHANGHAI CO., LTD.

CRO (Clinical Research Outsourcing) business

World Intec Group

World Residential Co., Ltd.

Nichimo Real Estate Co, Ltd.

World Intec Co., Ltd

GEOGRAPHIC INFORMATION OF KYUSHU, INC.

WORLD INTEC TAIWAN CO., LTD.

Copyright © WORLD INTEC CO.,LTD. All Rights Reserved 3

Content

1. Summary of Third Quarter Results for FY2012

2. Segment Highlights

3. FY2012 Business Forecasts

4. Medium-term Management Plan


1. Summary of Third Quarter Results for FY2012



Overview of FY2012 Third Quarter

5

Kyushu’s No.1 mobile shop had a strong showing as new smartphones and mobile phones were sold one after another and data communication terminals including tablet terminal and wifi routers continued to spread. Maintained higher sales and profits compared with budget while making prior investments in shop renovation.

Monzennakacho PJ, for which sales were postponed from 2Q to 3Q, was sold out. At the end of September, 167 units out of a total of 177 units for 4 condominiums were signed (94% contract rate). Number of units signed totaled 285 including other contract properties sold.Already secured 8 sites for FY2014 onwards.

Factory business is in a shortage of labor force on the whole and mainly smartphone-related demand was strong. In the highly in-demand logistics field, prior recruiting costs for year-end human resources demand and costs mainly due to the shifting of human resources increased. Technology business and R&D business were within budget. To strengthen the CRO field in the R&D business for the next fiscal year, World Intec announced that the company made DOT International Co., Ltd. its subsidiary (Ref.: Oct. 24, 2012 press release).

Strong demand! Continued prior investments for expansion

Going strong by selling smartphones through Kyushu’s No. 1 network!

Strong sales of condominiums; Also did well in purchasing!


Overview of FY2012 Third Quarter:Increases in Sales and Profits

Substantial increases in sales and profits YoY due to the expansion of 3 core businesses. Real estates in 2Q for which sales were postponed (Monzennakacho) were sold out in 3Q. Earnings growth in other segments covered the increased prior investment cost of Human resources education business.

Consolidated sales; ¥40,296 million (up 43.9% YoY)Consolidated operating income; ¥1,033 million (up 109.2% YoY)Consolidated ordinary income; ¥1,052 million (up 66.0% YoY)Consolidated net income; ¥640 million (up 128.0 YoY)

0

10,000

20,000

30,000

40,000

50,000

Others 1,927 3,960

Real estate business 1,386 7,678

Information technology &

telecommunications

business

6,736 8,849

Human resources

education business

17,959 19,808

2011/12 3Q 2012/12 3Q

Sales (FY2011)¥28,009 million

Sales (FY2012)¥40,296 million

△800△600△400△200

0200400600800

1,0001,2001,4001,6001,8002,000

Head office costs △684 △740

Others 43 140

Real estate business 76 524


telecommunications business

117 344

Human resources education

business

941 765

2011/12 3Q 2012/12 3Q

Operating income (FY2011)

¥493 million

Operating income (FY2012)

¥1,033 million


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

-3.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

Sales 7,533 7,194 6,959 7,406 7,652 7,926 7,886 8,644 9,806 8,920 9,283 9,883 11,957 13,259 15,080 11,677

Operating margin -2.0% 2.8% 1.0% 3.6% 2.0% 1.7% -0.6% 1.2% 5.0% 0.3% -0.2% 0.9% 0.9% 1.4% 4.8% 3.7%

09/ 1Q 2Q 3Q 4Q 10/ 1Q 2Q 3Q 4Q 11/ 1Q 2Q 3Q 4Q 12/1Q 2Q 3Q 4Q (est.)

7

Quarterly Consolidated Business Results

(Sales: Million yen) (Operating margin:%)

Real estates in 2Q for which sales were postponed (Monzennakacho) were sold out in 3Q and 24 out of 20 units were delivered. Other segments covered the prior investments of Human resources education business and Real estate business showed steady growth.No change to full-year forecasts at this time.

FY12/12 (est.)FY12/11FY12/10FY12/09

0.0％


Consolidated Financial Summary for the Third Quarter of FY2012 (YoY)

(Consolidated) FY12/11 3Q (Jan.-Sept.) actual

FY12/12 3Q(Jan.-Sept.) actual

YoY

(Million yen) Change Pct. change

Net sales 28,009 40,296 12,286 43.9%Operating income 493 1,033 539 109.2%

Operating margin 1.8% 2.6% - -Ordinary income 633 1,052 418 66.0%

Ordinary income margin 2.2% 2.6% - -Net income 281 640 359 128.0%

Net income margin 1.0% 1.5% - -

Operating income

Ordinary income

Sales ・Sales in all businesses increased resulting in 43.9% growth YoY

・Substantial increase in profit YoY due to a steady growth in the Real estate businessOther businesses covered the Elpida-related loss (68 million yen) and prior investments in the Human resources education business

・Received about 160 million yen in employment adjustment subsidy, etc. inthe previous fiscal year

・Net income also increased due to increases in sales and profits on a consolidated basisNet income


Business Summary by Segment YoY

Change Pct. Change

Net sales 11,742 13,098 1,356 11.5%Segment income 477 320 △157 △32.9%

Prof it margin 4.1% 2.4% －－

Net sales 4,402 4,585 183 4.2%Segment income 282 273 △8 △3.0%


Net sales 1,814 2,123 309 17.1%Segment income 182 171 △10 △5.8%


Net sales 6,736 8,849 2,112 31.4%Segment income 117 344 227 194.3%






Net sales 28,009 40,296 12,286 43.9%Elimination or corporate △684 △740 △56 －Operating income 493 1,033 539 109.2%

Operating margin 1.8% 2.6% －－

Informationtechnology &telecommunicationsbusiness

Real estate business

Others

Total

(Million yen)YoY

Factory business

Technology business

R&D business

FY12/11 3Q (Jan.-Sept.) actual

FY12/12 3Q(Jan.-Sept.) actual


Fixed assets,1,861 Fixed assets, 1,719 Fixed assets,2,024

Current assets, 11,505

Current assets, 15,407

Current assets,23,146

FY10 (as of Dec. 31, 2010) FY11 (as of Dec. 31, 2011) FY12/3Q (as of Sept. 30, 2012)

Total assets13,367

Total assets17,126

Cash & deposits 3,162Accounts receivable 3,571Real estate for sale in process 3,829

Tangible fixed assets 682Intangible fixed assets 121Investments, other assets 1,057

Cash & deposits 3,349Accounts receivable 3,891Real estate for sale in process

7,083

Tangible fixed assets 663Intangible fixed assets 141Investments, 913other assets

Million yen

Total assets24,773

Cash & Deposits7,386

Accounts receivable 4,289Real estate for sale in process

8,789Real estate for sale

757

Tangible fixed assets 703Intangible fixed assets 319Investments, 1,016other assets

FY2012 Third Quarter Balance Sheet (Assets)

Total assets increased 7,647 million yen compared with the end of the

sale in process and real estate for sale

Total assets increased 7,647 million yen compared with the end of the previous fiscal year mainly due to increases in real estate for sale in process and real estate for sale

10

22,734

2,038


Net assets, 4,893

Net assets, 4,961

Net assets, 5,080

Fixed liabilities, 2,077

Fixed liabilities, 1,052

Fixed liabilities,

Current liabilities, 6,445

Current liabilities,11,112

Current liabilities,

FY10 (as of Dec. 31, 2010) FY11 (as of Dec. 31, 2011) FY12/3Q (as of Sept. 30, 2012)

Total liabilities and net assets

13,367


17,126

Short-term debt 2,397Accounts payable 496Accrued expenses 2,212

Million yen


24,773

FY2012 Third Quarter Balance Sheet (Liabilities)

Total assets increased 6,992 million yen compared with the end of the previous fiscal

sale in process and real estate for sale

Total assets increased 6,992 million yen compared with the end of the previous fiscal year mainly due to short and long-term debts procured for purchasing real estate for sale in process and real estate for sale

Long-term 1,761 debt

Long-term 675 debt

Short-termdebt 6,168Accounts payable 553Accruedexpenses 2,560

Long-term debt 2,555

Short-term debt 9,806Accounts payable 642

11

Accrued expenses 2,767

16,169

2,987

5,615


2. Segment Highlights



Percentage of Sales/Operating Income by Segment YoY Comparison

13

¥28,009 million ¥40,296 million

FY11/3Q FY12/3Q


Percentage of Sales by Segment YoY Comparison

14

¥40,296 million

¥28,009 million

Sales Operating income

¥493 million (Head office ▲684)

¥1,033 million (Head office ▲763)


FY2012 Third Quarter Business Segment Report (1)

Human resources education businessFactory business

Orders for manufacturing including automobiles and smartphones were strong. Sales increased and profit decreased due to mounting prior investments mainly in recruiting and training of human resources for e-commerce-related logistics for the year-end (up 697 persons YoY)

Technology businessDemand for engineers in information and communications and automobile-related fields was strong but sales increased and profit decreased due to personnel shift as a result of the sluggish semiconductor field including Elpida-related loss in the 1st half. (Down138 persons in production technology and up 117 persons in design development, down 21 persons as a whole YoY)

R&D businessStrong sales due to strong orders in the field of general worker dispatching and active recruitment of specialized workers. Mounting investments in the improvement of CRO system resulted in increase in sales and decrease in profit. (up 40 persons YoY)

0

5,000

10,000

15,000

20,000

25,000

R&D business 1,814 2,123

Technology business 4,402 4,585

Factory business 11,742 13,098

2011 3Q 2012 3Q0

200

400

600

800

1,000

R&D business 182 171

Technology business 282 273

Factory business 477 320

2011 3Q 2012 3Q

SalesSegment operating

income

*Head office costs excluded

Sales up

Profit down

Sales up

Profit down

Sales up

Profit down


FY2012 Third Quarter Business Segment Report (2)

Information technology & telecommunications business

Smartphone and tablet-related sales were strong due to Kyushu’s No.1 shop network. In particular, profit increased (up 194% YoY) significantly as a result of selling smartphone-related items. The company promoted prior investments in shops for the next fiscal year.

Real estate business”Monzennakacho,” which was switched to sales after completion, were sold out in 3Q. Steady increase in sales of own condominiums with 94% contract rate. Got a project (former Suncity) started with an eye to reconstruction demand in Tohoku.

OthersSubstantial growth in the dispatch of sales staff involved in fashion businessIn the Administrative contract business, the contract business in Fukushima Prefecture remained strongOther affiliate subsidiaries were also profitable resulting in substantial increases in sales and profit as a whole

0

10,000

20,000

30,000

Other businesses 1,927 3,960

Real estate business 1,386 7,678

Information technology& telecommunicationsbusiness

6,736 8,849

2011 3Q 2012 3Q △50

450

950

1 ,450

Other businesses 43 140

Real estate business 76 524

Information technology& telecommunicationsbusiness

117 344

2011 3Q 2012 3Q

SalesSegment operating

income

Sales up Profit up

0

*Head office cost excluded

Sales up Profit up

Sales up Profit up


Human Resources Education Business Highlights: Number of Employees

11,585 employees in the Human resources education business at the end of Aug. 2008 (just before the Lehman Shock)

The number of employees in the Human resources education business recovered to 9,670 people at the end of Sept. 2012 (Total on consolidated basis: 10,182 employees)

(No. of employees)

17

Trends in FY12/12

0

2,000

4,000

6,000

8,000

10,000

12,000

End-Dec. 2008 End-Dec. 2009 End-Dec. 2010 End-Dec. 2011 2012/1Q 2012/2Q 2012/3Q

Factory Technology R&D CB Others


Factory Business Highlights: Percentages by Region and by Category of Business

18

FY12/11 3Q FY12/12 3Q

36.3%

26.5%

13.9%

17.2%

10.9%

8.9%

6.5%

10.8%

1.9%

6.8%

6.2%

5.0%

6.9%

3.7%

2.4%

3.4%

2.7%

4.8%

11.9%

12.6%

0 1,000 2,000 3,000 4,000 5,000 6,000

2011/12 3Q

2012/12 3Q

Semiconductor Electronics Machinery Automobile Precision Energy Chemical Food/consumables Medicine Information & communications Logistics Others

↗ Logistics field grew in Kyushu, smartphone-related electrical and electronics field grew in Chugoku and automotive field grew in Kansai, automotive and food fields grew in Kanto and mainly automotive field grew in Tohoku

↘ Percentages of semiconductor field and environmental energy field in Kyushu and Chugoku dropped, and percentage in the field of machinery in Tokai dropped

↗ Growth in the automotive, electrical and electronics, precision equipment and logistics fields↘ Semiconductor, machinery and environmental energy fields scaled down

Workforce: 5,488Japan: 4,904Taiwan: 584

Workforce: 6,185Japan: 5,800Taiwan: 385


65.7%10.8%

3.9%

7.1%

5.0%3.0%

2.8% 1.0%0.5%

0.2%2011 3Q

59.3%14.6%

7.2%

5.2%4.5%3.8%

3.2%1.6% 0.4% 0.2%

2012 3Q Semiconductor

Information & communicationsAutomobile

Others

Electronics

Energy

Machinery

Precision

Chemical

Medicine

Technology Business Highlights: No. of Workforce and Sales by Category of Business

Workforce: 1,308 persons(Production technology 772; design development 536)

Growth in the information and communications services field and automobile field in design development

Shifted from semiconductor field to other fields in production technology

Workforce: 1,329 persons(Production technology 910; design development 419)


R&D Business Highlights: Rate, Workforce and Operating Rate by Area

20

2011 3Q actual 2012 3Q actual 2014 targets

Workforce: 486 persons Workforce: 526 persons Workforce: 770 persons

Avg. unit cost of posting of new graduates More than 510,000 yen

Avg. operating rate: 97.1%

Avg. operating rate: 96.6% Avg. operating rate:

More than 97%

(36 supervisors included)(32 supervisors included) (40 supervisors included)

Of the personnel in FY2012 3Q, specialized worker dispatching accounted for 95% andgeneral worker dispatching account (0% for general worker dispatching in FY11/3Q)


Human Resources Education Business Highlights: Recent Topics M&A

Converted DOT International into a subsidiary (Nov. 1, 2012)

CRO (Clinical Research Outsourcing) specialists (has own CRA education system)

Substantial synergy effect in R&D businessFY10/11: Net sales of 670 million yen, ordinary income of 240 million yen, net assets of 340 million yen

21

DOT’s business activities

Operation of clinical trials and clinical studies

Specialized dispatching of monitors

Medical writing

Data management, statistical analysis

Clinical trial consulting

CRA training and development

Support for researches, etc. after manufacture and sales (drug use results survey, specific drug use results survey)


Information Technology & Telecommunications Business Highlights: Total No. of Mobile Phones and Smartphones Sold

22

59,538 58,81467,681

83,194 80,151

66,634

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2011 2Q 2011 3Q 2011 4Q 2012 1Q 2012 2Q 2012 3Q

Total no. of units sold

Note) The above are consolidated fiscal years and are 3 months behind the calendar.

Units


Real Estate Business Highlights: Brisk Sales of Residential Series

Fiscal 2012 completion and posting of sales: 4 buildings/177 units・Residential Shinagawa-Nakanobu:Shinagawa-ku, Tokyo 42 units Feb. 2012 completion Contracts signed 41 units Delivered 40 units

・Residential Ohanajaya: Katsushika-ku, Tokyo 67 units Mar. 2012 completion Contracts signed 67 units (sold out) Delivered 62 units

・Residential Monzennakacho: Koto-ku, Tokyo 24 units Jul. 2012 completion Contracts signed 24 units (sold out) Delivered 20 units

・Residential Kanamachi: Katsushika-ku, Tokyo 44 units Sept. 2012 completion Contracts signed 35 units Delivered 31 units

Contract rate at the end of 2Q

75.8%

Contract rate at the end of 3Q

94.3%

Residential Ohanajaya Residential Monzennakacho

Residential Shinagawa-NakanobuResidential Kanamachi


3. FY2012 Business Forecasts



(Consolidated)

FY12/11 actual FY12/12 planYoY change

(Million yen) Change Pct. change

Net sales 37,892 49,611 11,718 30.9%

Operating income 588 1,361 773 131.6%

Operating margin 1.5% 2.7% －－

Ordinary income 678 1,306 628 92.7%

Ordinary income margin 1.7% 2.6% －－

Net income 214 645 431 201.4%

Net income margin 0.5% 1.3% －－

Summary of FY2012 Consolidated Business Forecasts No Change from the Initial Forecasts

Growth in sales of Human resources education business and improvement in profit margin due to prior investment recoveryImprovement in profit margin of Information technology & telecommunications businessContribution of profitable Real estate business


Summary of FY2012 Business Forecasts by Segment

(Million yen) FY11/12 FY12/12 forecastYoY

Change Pct. change

Factory business

Net sales 15,722 20,120 4,398 28.0%

Segment income 596 1,026 430 72.1%

Profit margin 3.7％ 5.1％－－

Technology business

Net sales 5,982 6,286 303 5.1％

Segment income 327 405 78 23.8％


R&D business

Net sales 2,502 3,250 747 29.9％




Net sales 9,176 8,950 △226 △2.5％



Real estate business

Net sales 1,514 7,769 6,254 412.9％

Segment income △75 165 240 －

Profit margin △4.9％ 2.1％－－

Others

Net sales 2,994 3,235 240 8.0％



Total

Net sales 37,892 49,611 11,719 30.9％

Elimination or corporate △873 △988 -

Operating income 588 1,361 773 131.6％



4. Medium-term Management Plan



Aiming to Become a Company with Sales of 100 Billion Yen!!

World Intec, in order to “empower people through work” with the times, will develop human resources, provide places to work and provide services through its three core businesses. With this, the company will build strong financial base and revenue base to return profits to stakeholders and contribute to society.

28

Real estate businessSingle-transaction business


Steady revenue business

Human resources education business

Steady revenue business¥62 billion

¥25 billion¥13 billion

Comprehensive human resources services

Custom-built condominium customer satisfaction Mobile phone shops Kyushu


Growth Scenario:

World Intec will focus on 3 core businesses to aim for sustainable growth without being affected by external environment that much. The company will aim for net sales of 100 billion yen and operating income of 5 billion yen (profit margin of 5%) in FY12/16.

World Intec will aim to accumulate steady revenues in the Human resources business and in the customer base of a broad range of industries, the company will aim to raise the ratios of Technical department and R&D department with high needs, expand the size and improve profit margin as well as maintain high operating rate of human resources by focusing on attracting industries with high demand.

In the Information technology & telecommunications business, World Intec will accumulate steady revenues through the spread of new communication equipment including smartphones and tablets using Kyushu’s No.1 shop network.

In the Real estates business, World Intec will aim to stably supply 500 units of highly in-demand condominiums in Tokyo area and 200 units in Tohoku (reconstruction demand) with a goal of a profit margin of 10%.


Medium-Term Management Plan Basic Financial Indicators

30

FY12/16 Aiming to Become a Company with Sales of 100 Billion Yen!!

• ¥100 billionNet sales

• ¥5 billionOperating income

• More than 20%ROEReturn On Equity

• More than 25%Shareholders’ equity ratio

• Dividend payout ratio of more than 20%

Dividend policy

Human resources education business ¥62 billionInformation technology & telecommunications business

¥13 billionReal estate business ¥25 billion

Operating margin More than 5%

FY12/12 Forecast of about ¥50

billion

FY12/12 Forecast of about

¥1.36 billion (2.7%)

FY12/11 5.8%

FY12/12 2Q 17.1%

FY12/11 ¥4.50 not based on

payout ratio


Five-Year Earnings Plan: Net Sales

0

20,000

40,000

60,000

80,000

100,000

120,000

Human resources, others 7,769 8,100 13,920 20,100 25,100Information technology &telecommunications

8,950 10,000 11,000 12,000 13,000

Human resources, others 3,235 4,100 4,960 5,154 5,892R&D 3,250 3,600 4,500 5,400 6,480Technology 6,286 7,150 8,500 9,639 10,962Factory 20,120 23,511 27,703 32,646 38,665

FY12/12 FY12/13 FY12/14 FY12/15 FY12/16(Million yen)

Hum

an resources education

Real estate


telecommunications¥49.6 bn

¥56.4 bn

¥70.5 bn

¥84.9 bn

¥100 bn

31

Double sales!

¥62.0 bn

Hum

an resources education


Five-Year Earnings Plan: Operating Income

(Million yen)

32

■ Add profit from single-transaction in the Real estate business to accumulated steady revenues in the Human resources and Information technology & telecommunications businesses

¥1.36 bn

¥1.87 bn

¥2.72 bn

¥3.69 bn

¥5.01 bn

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Real estate 164 390 840 1,480 2,440

Information technology &telecommunications

270 300 370 400 430

Human resources, others 204 222 265 275 313

R&D 278 313 396 480 583

Technology 405 505 623 728 850

Factory 1,026 1,220 1,496 1,774 2,103

Corporate expenses (eliminations) -988 -1,072 -1,270 -1,443 -1,701

Operating margin % 2.70% 3.30% 3.90% 4.40% 5.00%

FY12/12 FY12/13 FY12/14 FY12/15 FY12/16


Dividends

Dividend payout ratio: Based on a dividend payout ratio of 20% from FY12/12

OthersAcquisition of treasury stock: From Aug. 29, 2012 to Feb. 28, 2013

• Treasury stock at the end of FY12/11: 496,351 shares; no. of shares acquired: 110,000 shares (as of end-Oct. 2012)

– Plan to use for the stock swap to convert DOT into a wholly owned subsidiary (announced on Nov. 1, 2012)

33

EPS (plan) Amount of dividend

Dividend payout ratio of 20%

FY12/11 actual FY12/12 FY12/14FY12/13 FY12/15 FY12/16


Akihiko Omoto

Public Relations and Investor Relations Department

Corporate Planning Division

World Intec Co., Ltd.

TEL 03-3516-1122

E-MAIL irinfo＠witc.co.jp

URL http://www.witc.co.jp/

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

For more information

http://www.witc.co.jp/

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