Copro-Holdings Co., Ltd. · TSE:7059

Copro-Holdings — Q1 FYE2025 Earnings Presentation

40 slides from Copro-Holdings's earnings presentation, August 2024

Slide 1: 1st Quarter of FYE2025 Financial Results
1st Quarter of FYE2025 Financial Results COPRO-HOLDINGS. Co., Ltd. Tokyo Stock Exchange-Prime, Nagoya Stock Exchange Premier(Ticker Symbol: 7059) ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved.
Slide 2: Agenda
01 Summary of Financial Result for 1Q FYE2025 02 Analysis of KPIs 03 FYE2025 Business Summary and Growth Strategy SECTION 04 FYE2025 Earnings Forecast 05 FYE2025 Dividend Forecast 06 Appendix ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved.
Slide 4: FYE2025 1Q Consolidated Financial Result Highlights
FYE2025 1Q Consolidated Financial Result Highlights Point1 With the increase in demand following the upper limit cap on overtime work, the strengthening of our recruiting capabilities to improve our "independent recruiting" proved successful, with the number of consolidated technical employees incre
Slide 5: Consolidated Financial Results for 1st Quarter
Consolidated Financial Results for 1st Quarter （million of yen） FYE2024 FYE2025 YoY Forecast 1Q Ratio 1Q Ratio Amount of Pct Change 1H Forecast Progress Rate Change Net sales 5,406 100.0％ 6,870 100.0% +27.1% +1,464 13,948 49.3% Cost of sales 3,964 73.3％ 5,071 73.8% +27.9% +1,106 10,027 50.6% Gross p
Slide 6: Quarterly Consolidated Financial Results
Quarterly Consolidated Financial Results Point1 Point1 First Quarter net sales and technician numbers both increased from the previous quarter. Point2 Record high on a quarterly basis. Point2 6,870 6,601 7,000 4,500 6,500 6,359 4,350 5,731 4,000 6,000 5,406 3,929 5,500 5,206 3,709 3,500 4,914 5,000
Slide 7: FYE2025 1Q Results by Subsidiary
FYE2025 1Q Results by Subsidiary Point1 As for COPRO CONSTRUCTION, operating profit increased significantly by 47.9% YoY due to a decline in fixed costs accompanying sales growth. Point2 COPRO TECHNOLOGY aggressively invested in advertising and publicity expenses to expand the number of recruits, pr
Slide 9: KPI Trends by Business Segment
KPI Trends by Business Segment Point The number of recruits grew considerably, particularly at COPRO CN. This led to the number of technical employees increasing by 1,036, or +31.3% YoY, to 4,350.The numbers smoothly exceeded the plan. - (Units: people & 1,000 yen) FYE2024 FYE2025 1Q 1H 2H Full FY 1
Slide 10: (Reference) Construction Technician Dispatching Business
(Reference) Construction Technician Dispatching Business Point1 Thanks to improvements in process management, the number of recruits increased by 37.3% YoY, a smooth start that exceeded the plan. As a result of strengthening support for technical employees in their first and second year with the Poi
Slide 11: (Reference) Mechanical & Electrical and Semiconductor Engineer Dispatching and Contracting Business
(Reference) Mechanical & Electrical and Semiconductor Engineer Dispatching and Contracting Business Point While recruiting progressed largely in line with the plan, the number of resignations was slightly higher than planned due to an increase in inexperienced engineers, resulting in a net increase
Slide 12: (Reference) IT Engineers Dispatching Business
(Reference) IT Engineers Dispatching Business Point The number of employed engineers fell short of the plan because the number of recruits and resignations both didn’t meet the plan. ⇒ From 2Q onwards, the company will aim to make a comeback by improving the yield rate of its recruitment process and
Slide 14: Construction Industry Trends
Construction Industry Trends The technician dispatching market is in an expanding trend due to the chronic labor shortage Human resources services for the construction Market share of the 8 listed companies industry - Market size forecast*1 As competition for talent intensifies, market share In FY20
Slide 15: Construction Industry Trends
Construction Industry Trends Demand will continue to grow due to the application of the revised labor standards law*1 and active construction investment Number of construction management job openings Construction industry 2024 problem is five times higher than in 2016 About 40% of general contractor
Slide 16: Growth Strategy
Growth Strategy ✓ Following on from FYE2024, we will continue to increase our recruiting numbers in FYE2025 in order to take advantage of the favorable business environment, and we aim to expand the number of technical employees and our business. ✓ We will focus more on technical employee retention,
Slide 17: Recruiting Strategy(1): Boosting Our Strength in Own Recruitment
Recruiting Strategy(1): Boosting Our Strength in “Own Recruitment” Point1 The number recruited in 1Q of FYE2025 (excluding new graduates) increased significantly by 57.8% YoY to 726 people. ⇒ As job seekers become more active towards April, the Company invested additional recruitment expenses outsid
Slide 18: Recruiting Strategy(1): Boosting Our Strength in Own Recruitment
Recruiting Strategy(1): Boosting Our Strength in “Own Recruitment” Point1 While the number of prospective employees for construction engineers remained roughly the same YoY due to intensifying competition for recruits, strengthening process management significantly improved the rate of those who dec
Slide 19: Recruiting Strategy(2): Strengthening Our Recruitment Platform Bscareer
Recruiting Strategy(2): Strengthening Our Recruitment Platform “Bscareer” Point1 As a result of our advertising strategy that targeted people with industry experience and the use of MA tools to deliver accurate job information based on past applicant data, despite a decrease in the total number of a
Slide 20: Recruiting Strategy(3): Improving the Utilization Rate
Recruiting Strategy(3): Improving the Utilization Rate Point1 In 1Q FYE2025, the utilization rate temporarily decreased due to a significant increase in the number of recruits. Point2 On the other hand, the demand for human resources has been steady due to the construction industry's 2024 problem an
Slide 21: Retention Strategy: Improving the Retention Rate in the 1st & 2nd Years
Retention Strategy: Improving the Retention Rate in the 1st & 2nd Years The contract price during the first and second years of employment is around 450,000 yen, rising sharply to Point1 around 500,000 yen in the third year. By preventing resignations in the first or second year, we can increase the
Slide 22: Retention Strategy: Improving the Retention Rate in the 1st & 2nd Years
Retention Strategy: Improving the Retention Rate in the 1st & 2nd Years For our technical employees, from September 2024 we plan to introduce a qualification study support system Point1 and a bonus system for getting qualifications. Employees who are recognized as having a certain level of skill are
Slide 24: Summary of the Full FY Earnings Forecast for FYE2025
Summary of the Full FY Earnings Forecast for FYE2025 Point1 We aim to accelerate the expansion of our scale while continuing to invest in growth, mainly in recruiting costs for the dispatching of construction technicians. Point2 While continuing to invest in growth, we plan to improve productivity,
Slide 25: FYE2025 Consolidated Earnings Forecast
FYE2025 Consolidated Earnings Forecast （Million of yen） FYE2024 FYE2025（Forecast） YoY Full year Ratio Full year Ratio Amount of Pct Change Change Net sales 24,098 100.0% 30,000 100.0% +24.5% +5,901 Cost of sales 17,323 71.9% 21,551 71.8% +24.4% +4,227 Gross profit 6,774 28.1% 8,449 28.2% +24.7% +1,6
Slide 26: FYE2025 KPIs by Business (Forecast)
FYE2025 KPIs by Business (Forecast) - (Units: people & 1,000 yen) FYE2024 FYE2025 Full Year 1H 2H Full Year YoY Change YoY Difference (forecast) No. of recruits 1,166 1,056 2,222 2,776 +24.9% +554 Construction technician dispatch 1,072 952 2,024 2,299 +13.6% +275 Mechanical & electrical and 56 62 11
Slide 28: Dividend Forecast
Dividend Forecast Dividend Policy 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, but rather maintain a consolidated dividend payout ratio of 50% or more, d
Slide 30: Company Outline
Company Outline Company Name COPRO-HOLDINGS. Co., Ltd. Domestic • COPRO CONSTRUCTION. Co., Ltd. Subsidiaries • COPRO TECHNOLOGY. Co., Ltd. Representative Kosuke Kiyokawa, CEO Overseas • COPRO VIETNAM CO., LTD. Head Office Dai Nagoya Building 25F, 3-28-12 Subsidiaries Meieki, Nakamura-ku, Nagoya, Aic
Slide 31: Introduction of the Management Team
Introduction of the Management Team COPRO-HOLDINGS Co., Ltd. COPRO CONSTRUCTION Co., Ltd. COPRO TECHNOLOGY Co., Ltd. President and Chief Executive Officer President and Chief Executive Officer President and Chief Executive Officer Kosuke Kiyokawa Yusuke Koshikawa Hideki Nishioka Born October 16, 197
Slide 32: Company History
Company History 2006 Oct. Trusty Crew Co., Ltd. established 2008 Mar. The Company name changed to COPRO-ENGINEERD Co., Ltd. 2015 May Shifted to a holdings (holding company) system with COPRO-HOLDINGS. Co., Ltd. as pure holding company 2019 Mar. Listed on the Mothers market of the Tokyo Stock Exchang
Slide 33: Business Outline
Business Outline Engineer Employment Outsourcing Employment contract contract contract ※1 COPRO-HOLDINGS. Co., Ltd. Construction Technician Dispatching and Contracting Business of Dispatching Business Mechanical and Semiconductor Engineers Dispatch Business of IT Engineer Providing COPRO CONSTRUCTIO
Slide 34: Corporate Philosophy
Corporate Philosophy Issues of the Construction Industry MISSION Creating a dynamic ”human driven” society Aging of Delay of Digital Chronic labor Transformation engineers shortage VISION Becoming a human Resolve the Construction Industry Issues resource development The best “work style” company tha
Slide 35: Dispatch Area: Construction Technician Dispatching
Dispatch Area：Construction Technician Dispatching Area of Technician Dispatching Role of Construction Management (Country, local governments, Ordering party developers, etc.) The main duties are coordination and preparation such as adjusting construction progress, ordering materials and ensuring saf
Slide 36: A stock-type business with high growth potential
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 (Bln of yen, people） 5,168 350 4500 300 Achieved 18 consecutive years of 3,929 30.0 revenue growth si
Slide 37: Branch Offices
Branch Office Construction Technician Dispatching 9 base Dispatching and Contracting Business of Mechanical and Semiconductor Engineers 4 base Dispatch Business of IT Engineer 1 base Overseas 1 base *As of June 2024 ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 37
Slide 38: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan • While making investments in growth, such as recruiting costs mainly in the construction technician dispatching business, we aim to accelerate the organic growth of existing businesses and exceed the Medium-Term Plan performance targets for each fiscal ye
Slide 39: Consolidated Financial Results
Consolidated Financial Results Net Sales Operating Profit Non-GAAP Operating Profit （Mln of yen）（Mln of yen）（Mln of yen） 2,700 30,000 3,162 2,141 24,098 2,437 1,621 18,791 1,437 1,321 1,841 14,836 15,589 1,530 1,606 21/3期 FYE2021 22/3期 FYE2022 23/3期 FYE2023 24/3期 FYE2024 25/3期(予想) FYE2025 21/3期 FY
Slide 40: 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 — Q1 FYE2025 Earnings Presentation on 6ix

Copro-Holdings — Q1 FYE2025 Earnings Presentation

Slide 1: 1st Quarter of FYE2025 Financial Results

Slide 2: Agenda

Slide 3: Summary of Financial Result for 1Q FYE2025

Slide 4: FYE2025 1Q Consolidated Financial Result Highlights

Slide 5: Consolidated Financial Results for 1st Quarter

Slide 6: Quarterly Consolidated Financial Results

Slide 7: FYE2025 1Q Results by Subsidiary

Slide 8: Analysis of KPIs

Slide 9: KPI Trends by Business Segment

Slide 10: (Reference) Construction Technician Dispatching Business

Slide 11: (Reference) Mechanical & Electrical and Semiconductor Engineer Dispatching and Contracting Business

Slide 12: (Reference) IT Engineers Dispatching Business

Slide 13: FYE2025 Business Summary and Growth Strategy

Slide 14: Construction Industry Trends

Slide 15: Construction Industry Trends

Slide 16: Growth Strategy

Slide 17: Recruiting Strategy(1): Boosting Our Strength in Own Recruitment

Slide 18: Recruiting Strategy(1): Boosting Our Strength in Own Recruitment

Slide 19: Recruiting Strategy(2): Strengthening Our Recruitment Platform Bscareer

Slide 20: Recruiting Strategy(3): Improving the Utilization Rate

Slide 21: Retention Strategy: Improving the Retention Rate in the 1st & 2nd Years

Slide 22: Retention Strategy: Improving the Retention Rate in the 1st & 2nd Years

Slide 23: FYE2025 Earnings Forecast

Slide 24: Summary of the Full FY Earnings Forecast for FYE2025

Slide 25: FYE2025 Consolidated Earnings Forecast

Slide 26: FYE2025 KPIs by Business (Forecast)

Slide 27: FYE2025 Dividend Forecast

Slide 28: Dividend Forecast

Slide 29: Appendix

Slide 30: Company Outline

Slide 31: Introduction of the Management Team

Slide 32: Company History

Slide 33: Business Outline

Slide 34: Corporate Philosophy

Slide 35: Dispatch Area: Construction Technician Dispatching

Slide 36: A stock-type business with high growth potential

Slide 37: Branch Offices

Slide 38: Progress of the Medium-Term Management Plan

Slide 39: Consolidated Financial Results

Slide 40: Disclaimer and Forward-Looking Statements