Copro-Holdings Co., Ltd. · TSE:7059
Copro-Holdings — H1 FYE2022 Earnings Presentation
35 slides from Copro-Holdings's earnings presentation, Nov 11, 2021
Slide 1: Fiscal Year Ending March 31, 2022 Presentation Material for 1st Half
Fiscal Year Ending March 31, 2022 November 11, 2021
Slide 2: Contents
Contents 1. Financial Highlights 2. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 3. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business of machinery design and development engineers） 4. Major Topics from
Slide 3: 1. Financial Highlights
1. Financial Highlights 2. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 3. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business of machinery design and development engineers） 4. Major Topics from 1st Quart
Slide 4: Consolidated Financial Results
Consolidated Financial Results • Made ATMOS CO., LTD., a company engaged in the dispatching and contract business of machinery design and development engineers, a subsidiary and consolidated results for 3 months. • Operating profit increased +19.0% year on year, supported by an improvement in the co
Slide 5: Consolidated Operating Profit
Consolidated Operating Profit ・COPRO-ENGINEERED：Gross profit increased due to stronger negotiations for charge-up, which contributed to an improvement in the cost of sales ratio. ・ATMOS：3 months' worth of earnings (June to August) were newly consolidated. Cost of sales ratio rose in the dispatching
Slide 6: Quarterly Financial Results
Quarterly Financial Results • In 2nd quater (July to September), net sales turned to an increase due to the new consolidation of ATMOS and a slight increase in sales of COPRO-ENGINEERED. Further, following on from 1st quarter (April to June), operating profit maintained its upward trend, as the incr
Slide 7: Balance Sheet
Balance Sheet ・（Assets）Current assets decreased due to payments for acquisition of subsidiaries, purchase of treasury stock, and payment of dividends. On the other hand, fixed assets increased due to the acquisition of subsidiaries, the relocation of the head office, and the development of a new cor
Slide 8: Non-Consolidated Results of Subsidiaries
Non-Consolidated Results of Subsidiaries COPRO-ENGINEERED. Co., Ltd. ATMOS CO., LTD. （millions JPY） （millions JPY） FYE2021 FYE2022 FYE2021 FYE2022 Year-on-year Year-on-year 1st Half Full-year 1st Half 1st Half Full-year 1st Half (amount) (%) (amount) (%) Net sales 7,271 14,836 7,238 △32 △0.5％ Net sa
Slide 9: 2. Breakdown of Sales & KPIs (Construction and Plant Engineers)
1. Financial Highlights 2. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 3. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business of machinery design and development engineers） 4. Major Topics from 1st Quart
Slide 10: Sales by Business Partner and Area
Sales by Business Partner and Area • Sales declined at major general contractors and subcontractors, which are in a lull in demand for urban redevelopment from the Olympic Games, and sales declined mainly in the 3 major metropolitan areas due to the prolonged declaration of an emergency due to COVID
Slide 11: Sales by Industry
Sales by Industry • Sales of facilities declined due to a decrease in projects prior to completion. On the other hand, projects at the design stage and immediately after construction started are trending upward, and construction and CAD sales increased. FYE2021 1st Half FYE2022 1st Half （millions JP
Slide 12: Number of Engineers & Occupancy Rate
Number of Engineers & Occupancy Rate • The number of engineers at the end of this 2nd quarter was 1,978, down 24 from the end of the previous 2nd quarter. • The occupancy rate of engineers at the end of 2nd quarter was 97.0%, down 0.7 percentage points from the end of the previous 2nd quarter. （No.
Slide 13: Recruitment / Turnover, Retention Rate & Contract Renewal
Recruitment / Turnover, Retention Rate & Contract Renewal • The number of hires was restrained due to weakening demand for human resources, particularly in urban areas, following the prolonged emergency declaration. • From the fiscal year under review, the effects of the change to a system in which
Slide 14: Average Monthly Contract Amount per Engineer by Years of Experience
Average Monthly Contract Amount per Engineer by Years of Experience • The company-wide average contract amount improved significantly to +11 thousand yen YoY thanks to the success of the strengthening of charge-up negotiations. In addition, the contract amount was positive for all years. • The contr
Slide 15: 3. Breakdown of Sales & KPIs (Machinery Design Engineers)
1. Financial Highlights 2. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 3. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business of machinery design and development engineers） 4. Major Topics from 1st Quart
Slide 16: Sales by Area and Industry
Sales by Area and Industry • Sales were robust in Tokai and Kyushu, which are the bases of the automotive industry, the company‘s main trading industry. Meanwhile, Hokuriku, which is the base of sales in the aircraft industry, struggled due to the impact of COVID-19. • The consumer electronics indus
Slide 17: Number of Engineers & Occupancy Rate
Number of Engineers & Occupancy Rate • At the end of this 2nd Quarter, the number of engineers was 108. • The occupancy rate at the end of this 2nd Quarter was 98.1%. The occupancy rate remained at a high level due to the sharing of human resources between the dispatching business and the contractin
Slide 18: Recruitment / Turnover, Retention Rate & Contract Renewal
Recruitment / Turnover, Retention Rate & Contract Renewal • The Company achieved a high retention rate by sharing human resources between the dispatching business and the contracting business, and the contract renewal rate remained at a high level. Recruitment / Turnover Retention Rate FYE2022 FYE20
Slide 19: Average Hourly Contract Amount by Years of Experience
Average Hourly Contract Amount by Years of Experience • As the number of years of experience accumulated, the hourly contract amount rose. Average Hourly Contract Amount（Dispatch business） （JPY/Hour） * Average hourly contract amount at the end of 2Q FYE2022. 4,000 3,749 3,359 3,260 3,500 2,830 3,000
Slide 20: 4. Major Topics from 1st Quarter Financial Results Announcement
1. Financial Highlights 2. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 3. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business of machinery design and development engineers） 4. Major Topics from 1st Quart
Slide 21: Major Topics ①: Acquisition of VALUE ARK CONSULTING
Major Topics ① Acquisition of Shares of VALUE ARK CONSULTING CO., LTD. (announced on September 14) • Resolved to acquire VALUE ARK CONSULTING with the aim of building a business portfolio specializing in high-value- added engineers within the human resource services industry. On September 30, the Co
Slide 22: Major Topics ②: Selection of TSE Prime Market
Major Topics ② The Assessment of Compliance with the Continued Listing Criteria for the New Market Segments and the Resolution to Select the Prime Market (announced on September 10) • In response to the assessment from the TSE regarding the status of compliance with the continued listing criteria, t
Slide 23: 5. FYE2022 Financial Forecast and Business Outlook
1. Financial Highlights 2. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 3. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business of machinery design and development engineers） 4. Major Topics from 1st Quart
Slide 24: FYE2022 Financial Forecast
FYE2022 Financial Forecast • The weakening trend in demand for human resources is expected to bottom out in the 2nd half and move in a positive direction as a whole. As it is expected to return to a chronic shortage of engineers before the construction industry, the Company will further strengthen s
Slide 25: Business Outlook
Business Outlook ▪COPRO-ENGINEERD. Co., Ltd.（Dispatching business of construction and plant engineers） Urban redevelopment projects, which had been halted by Olympic demand, are expected to move into the 2nd half, and the number of projects is expected to recover due to the stabilization of the spre
Slide 26: 6. Returning Shareholders
1. Financial Highlights 2. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 3. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business of machinery design and development engineers） 4. Major Topics from 1st Quart
Slide 27: Returning Shareholders
Returning Shareholders Acquisition of treasury stock (up to 350 million JPY) for the period from September 15 to December 30, 2021 Total return ratio expected to be approximately 68％ ✓ Annual Dividend for FYE2022 is expected to be 40, an increase of +2.5 JPY from the previous period ✓ Expecting a th
Slide 28: 7. Story of Value Creation
1. Financial Highlights 2. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 3. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business of machinery design and development engineers） 4. Major Topics from 1st Quart
Slide 29: Purpose
Purpose ⚫ We will create a dynamic "human-drive" society in which people move by providing society with the best ways to work and the best workers. Our Purpose The Best Ways to Work and the Best Workers Business Partners People Shareholders living in Investors society Client Job seekers companies Ma
Slide 30: Unique Strengths and Non-Financial Capital
Unique Strengths and Non-Financial Capital ⚫ Our sales abilities and technological abilities, backed by our human resources, provide us with speedy matching. Non-Financial Capital COPRO Group's Strengths Power within the Group Power outside the Group Human capital Management Social capital Engineers
Slide 31: Group's Vision "Engineer Support Platform"
Group's Vision "Engineer Support Platform" ⚫ The Engineer Support Platform supports engineers' diverse work styles. Engineer Support Platform Search & Select Work 1 The Best Ways to Work ⚫ Job change ⚫ Career advancement ⚫ Area change ⚫ Side business, Freelance Job seekers, Try out Including Career
Slide 32: Creation of Values
Creation of Values ⚫ We will contribute to the creation of a society in which engineers can continue to refine their technologies for their lifetime and thrive by providing the best working ways and the best workers. Inputs Business Model Economic Value Environmental and Social Value Provide the fol
Slide 33: Towards Sustainable Growth
Towards Sustainable Growth ⚫ Our long-term targets are net sales of 1,000 billion JPY and operating profit of 10 billion JPY. We aim to be the No. 1 corporate group in the engineer dispatch industry, which continues to be selected by both engineers and client companies. Changes in the business envir
Slide 34: Medium-term Management Plan to Be Announced
Medium-term Management Plan to Be Announced Medium-Term Management Plan “COPRO Group VISION 202X" (tentative) Scheduled to be announced around spring 2022 Aiming to achieve sustainable growth and medium-to long-term improvement in corporate value, scheduled to announce a medium-term management plan
Slide 35: 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