Copro-Holdings Co., Ltd. · TSE:7059

Copro-Holdings — FY2023 Earnings Presentation

36 slides from Copro-Holdings's earnings presentation, May 15, 2023

  1. Slide 1: Financial Results for FYE2023

    ・Brand Ambassadors：Comedian “Miyashita Kusanagi” ・Group Mascot：Coprou Fiscal Year Ended March 31, 2023 Financial Results for FYE2023 Tokyo Stock Exchange-Prime, Nagoya Stock May 15, 2023 Exchange Premier (Ticker Symbol: 7059)

  2. Slide 2: Section agenda

    SECTION 01 Summary of the Consolidated Financial Results for FYE2023 02 FYE2023 Business Summary 03 FYE2024 Business Strategy 04 FYE2024 Earnings Forecast & Medium-Term Plan Progress 05 Change in the Dividend Policy & Dividend Forecast 06 【Appendix】About COPRO Group ©2023 COPRO-HOLDINGS. Co., Ltd. A

  3. Slide 3: Summary of the Consolidated Financial Results for FYE2023

    SECTION 01 Summary of the Consolidated Financial Results for FYE2023 ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 2

  4. Slide 4: Highlights of the Consolidated Financial Results for FYE2023

    Highlights of the Consolidated Financial Results for FYE2023 Net Sales Non-GAAP Operating Profit 18,791million yen 1,606million yen (YoY +20.5％) Record (YoY ▲ 12.8％) (Vs. Forecast +2.2％) High (Vs. Forecast +5.6％) Net Profit Attributable to the Number of Consolidated Shareholders of the Parent Compan

  5. Slide 5: Consolidated Financial Results for FYE2023

    Consolidated Financial Results for FYE2023 （million of yen） FYE2022 FYE2023 Vs. Revised Forecast Full year Full year Ratio Ratio YoY Vs. Initial Forecast (11/14 upward results results revision) Net sales 15,589 100.0％ 18,791 100.0％ +20.5％ +3,202 +5.2％ +937 +2.2％ +410 Cost of sales 10,744 68.9％ 13,21

  6. Slide 6: Quarterly Consolidated Financial Results

    Quarterly Consolidated Financial Results • Both sales and the number of technical employees in the fourth quarter increased from the previous quarter. It was a record high on a quarterly basis. • The number of consolidated technical employees exceeded 3,000 at the end of the fourth quarter. *The num

  7. Slide 7: FYE2023 Business Summary

    SECTION 02 FYE2023 Business Summary ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 6

  8. Slide 8: Construction Technician Dispatching: Major KPIs

    Construction Technician Dispatching: Major KPIs Job Posting Requests Number of Hirings Mid-Career Hiring Costs Number of Technicians (annual total) （incl. new grads） per Technician 2,777 people 35,978 jobs 1,472 people 356 thousand yen (YoY+ 39.2％) (YoY+ 89.4％) (YoY+ 76.5％) (YoY+ 28.5％) ◎ ◎ 〇 〇 Targ

  9. Slide 9: Construction Technician Dispatching: Expansion of Mid-Career Professional Recruitment

    Construction Technician Dispatching: Expansion of Mid-Career Professional Recruitment • In this FY, we prioritized top-line growth by securing human resources and actively investing in mid-career recruiting costs as an upfront investment. Recruitment reform efforts were also successful, and the full

  10. Slide 10: Construction Technician Dispatching: Retention Rate Improvement

    Construction Technician Dispatching: Retention Rate Improvement Sales to target Stable assignment with Promotion of shift to companies contract renewals permanent employment Target Company Contract Renewal Permanent Assignment Rate Rate Employment Ratio 89.0％ 82.4％ 42.0％ (YoY+ 1.6pts) (YoY+ 3.8pts)

  11. Slide 11: Construction Technician Dispatching: Recruitment, Turnover and Retention Rate

    Construction Technician Dispatching: Recruitment, Turnover and Retention Rate • The number of recruits for the full FYE2023 was 1,472 (up 76.5% YoY). The number of technicians has increased significantly due to the success of active investment in recruiting costs. The retention rate was 74.4%, an im

  12. Slide 12: Construction Technician Dispatching: Number of Technicians and Utilization Rate

    Construction Technician Dispatching: Number of Technicians and Utilization Rate • The number of technicians at the end of FYE2023 was 2,777, a significant increase of 39.2% YoY. The cumulative utilization rate for the full FY was 96.4% (down 0.5pts YoY). Due to the impact of people taking paid leave

  13. Slide 13: Mechanical Design Engineer Dispatching: Recruitment, Turnover and Retention Rate

    Mechanical Design and Development Engineer Dispatching and Contracting: Recruitment, Turnover and Retention Rate • In FYE2023, we strengthened sales in new areas such as software development and semiconductors. In addition, we increased the number recruited by investing in recruiting costs and expan

  14. Slide 14: Mechanical Design Engineer Dispatching: Number of Engineers and Utilization Rate

    Mechanical Design and Development Engineer Dispatching and Contracting: Number of Engineers and Utilization Rate • In FYE2023, the number of engineers recruited has expanded, mainly in the dispatching business, and the number of engineers has increased steadily. The cumulative utilization rate for t

  15. Slide 15: SES: Number of Applicants, Recruits and Engineers

    SES: Number of Applicants, Recruits and Engineers • In addition to the success of new sales by expanding the sales system, the number of recruits increased significantly YoY due to aggressive investment in recruiting costs. • In response to customer requests, we have increased the number of engineer

  16. Slide 16: SES: Number of Engineers

    SES：Number of Engineers Strengthening such initiatives as sales, recruitment, and trust activities for engineers while investing in growth such as personnel and expenses. The number of people utilized increased steadily as business activities expanded. YoY ＋30.0％ （people, as of the end of the month）

  17. Slide 17: FYE2024 Business Strategy

    SECTION 03 FYE2024 Business Strategy ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 16

  18. Slide 18: Construction Technician Dispatch Business Strategy (1)

    Construction Technician Dispatch Business Strategy (1) • In FYE2024, we will accelerate the speed of expanding our size by enlarging the two wheels of sales and recruitment. • We will transition to a profit generation phase from FYE2024. Number of technicians doubled Sales 17.5 in just two years bin

  19. Slide 19: Construction Technician Dispatch Business Strategy (2)

    Construction Technician Dispatch Business Strategy (2) Formation on Nov. 14, 2022 Feb. 13, 2023 Business Alliance Business Alliance with Blue Innovation Co., Ltd. SpiderPlus & Co. Participating in Introducing accelerated Training for Joint PR activities for training course support for construction D

  20. Slide 20: Mechanical Design and Development Engineer Dispatching and Contracting: Business Strategy

    Mechanical Design and Development Engineer Dispatching and Contracting: Business Strategy • With the aim of expanding the dispatching business, we opened a Tokyo branch in May FYE2023 2022 to develop new customers. Measures • Expanded the dispatch business to the semiconductor industry as a new area

  21. Slide 21: SES Business Strategy

    SES Business Strategy • On March 6, 2023, launched “Bscareer IT”, Japan's largest project introduction site for IT engineers. • The comedy duo Miyashita Kusanagi were appointed as the brand ambassadors to strengthen the branding. • We aim to increase the number of recruits by investing in recruiting

  22. Slide 22: FYE2024 Earnings Forecast & Medium-Term Plan Progress

    SECTION 04 FYE2024 Earnings Forecast & Medium-Term Plan Progress ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 21

  23. Slide 23: FYE2024 Consolidated Earnings Forecast Summary

    FYE2024 Consolidated Earnings Forecast Summary Net Sales Non-GAAP Operating Profit 24,298million yen 2,140million yen (YoY+ 29.3％) Record (YoY+ 33.2％) Record High High Net Profit Attributable to the Number of Consolidated Shareholders of the Parent Company Technicians and Engineers 1,167million yen

  24. Slide 24: Financial Forecast for FYE2024

    Financial Forecast for FYE2024 （million of yen） FYE2023 FYE2024（forecast） 1st Half Full-year Ratio 1st Half YoY Full-year Ratio YoY Net sales 8,670 18,791 100.0％ 11,203 +29.2％ 24,298 100.0％ +29.3％ Cost of sales 6,086 13,216 70.3％ 8,040 +32.1％ 17,233 70.9％ +30.4％ Gross profit 2,583 5,575 29.7％ 3,162

  25. Slide 25: Progress of the Medium-Term Management Plan

    Progress of the Medium-Term Management Plan • Continuing from FYE2023, the earnings forecast for FYE2024 is expected to exceed the targets of the Medium-Term Plan. • In the construction technician dispatching business, which is our main business, the results of the sales and recruitment reforms that

  26. Slide 26: Change in the Dividend Policy & Dividend Forecast

    SECTION 05 Change in the Dividend Policy & Dividend Forecast ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 25

  27. Slide 27: Changes to Our Dividend Policy

    Changes to Our Dividend Policy Dividend Policy Before the Change Dividends are the basis for shareholder returns, which we consider to be one of the important management issues, and our basic policy is to pay stable dividends. We will not reduce dividends during the period covered by the medium-term

  28. Slide 28: Dividends Forecast

    Dividends Forecast • For FYE2024, the dividend per share is forecast to increase by 30.0 yen to 80.0 yen for the full year. • The consolidated dividend payout ratio is forecast to be 63.7%. 100 63.7% 95 （yen） 60.0% 90 53.7% 85 80.0 50.0% 80 39.2% 75 35.1% 40.0% 70 65 26.1% 30.0% 60 20.2% 18.5% 55 50

  29. Slide 29: Appendix: About COPRO Group

    SECTION 06 【Appendix】 About COPRO Group ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 28

  30. Slide 30: Company Outline

    Company Outline COPRO-HOLDINGS. Co., Ltd. Net Sales Ratio for FYE2023 Representative Kosuke Kiyokawa, CEO Dai Nagoya Building 25F , 3- Head office 28-12 Meieki, Nakamura-ku, Nagoya, Aichi Date of October, 2006 Consolidated Net Sales 18,791million yen establishment Security code 7059 Subsidiaries COP

  31. Slide 31: Training & Dispatching Excellent Technical Employees

    About Our Business Training & Dispatching Excellent Technical Employees COPRO Career development support, Latest technical training, Appropriate evaluation system Offering the Offering the best working style best workers Technical Client employees companies Value-added improvement as Providing labor

  32. Slide 32: Business Characteristics

    Business Characteristics A “stock-type business” with high growth potential By increasing sales in proportion to the number of dispatched technical employees, stable earnings growth can be expected (hundred mln yen, people) 4,271 Achieved 17 consecutive years of revenue growth 300 4000 since our fou

  33. Slide 33: Business Environment: Construction Industry

    Business Environment: Construction Industry The manpower shortage is becoming more serious due to the chronic labor shortage and the application of the revised Labor Standards Law *1 Application of the revised Labor Number of construction workers *2 Standards Law *1 29.2% drop from the peak in FY202

  34. Slide 34: Business Environment: Construction Technician Dispatch Industry

    Business Environment: Construction Technician Dispatch Industry Due to intensifying recruitment competition, several major companies are expected to expand their market share Size of construction technician dispatch market *1 The construction technician dispatch market will The market share of the 6

  35. Slide 35: Construction Technician Dispatch Market Size Forecast

    Business Environment: Construction Technician Dispatch Market Size Forecast (hundred mln yen) 6,052 Average annual 5,558 growth rate 5,105 +8.8% 4,689 4,308 3,958 3,637 3,342 3,072 2,823 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 * Estimated by our company ©2023 COPRO-HOLDINGS. Co., Ltd. All

  36. Slide 36: Disclaimer and Forward-Looking Statements

    Disclaimer and Forward-Looking Statements ◼ This document has been prepared by COPRO-HOLDINGS. Co., Ltd. (the “Company”) to assist investors in understanding the current status of Company. ◼ The information contained in this document is based on economic, social, and other conditions generally recog

COPRO-HOLDINGS — FY2023 Earnings Presentation on 6ix