Copro-holdings Co., Ltd. · TSE:7059
Copro-holdings — Q3 FY2022 Earnings Presentation
27 slides from Copro-holdings's earnings presentation, Feb 10, 2022
Slide 1: Fiscal Year Ending March 31, 2022 Q3 Results
Fiscal Year Ending March 31, 2022 February 10, 2022
Slide 2: Contents
Contents 1. Major Topics from 2nd Quarter Financial Results Announcement 2. Consolidated Financial Highlights 3. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 4. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting
Slide 3: Contents
1. Major Topics from 2nd Quarter Financial Results Announcement 2. Consolidated Financial Highlights 3. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 4. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business
Slide 4: Major Topics from 2Q Financial Results Announcement
Major Topics from 2Q Financial Results Announcement Plans to Meet the Continued Listing Criteria (announced on December 10, 2021) • In order to meet the Prime Market’s listing criteria, we intend to promote each business strategy based on the medium-term management plan (FYE2023 to FYE2027), which w
Slide 5: Consolidated Financial Highlights
1. Major Topics from 2nd Quarter Financial Results Announcement 2. Consolidated Financial Highlights 3. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 4. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business
Slide 6: Consolidated Financial Highlights
Consolidated Financial Highlights • Net sales increased 3.4% year on year due to the new consolidation of ATMOS and VALUE ARK CONSULTING. • Non-GAAP operating profit* increased significantly by +24.7% year-on-year due to the contribution of the improved cost of sales ratio from the progress in charg
Slide 7: Quarterly Consolidated Financial Results
Quarterly Consolidated Financial Results • Net sales, operating profit, and Non-GAAP operating profit for 3rd Quarter period achieved record highs on a quarterly basis. FYE2020 FYE2021 FYE2022 4,500 3,000 ✓ Number of consolidated engineers at the end of 3Q: +30 QoQ ✓ 3rd Quarter net sales: +5.0% QoQ
Slide 8: Consolidated Operating Profit
Consolidated Operating Profit • Non-GAAP operating profit increased +24.7% year on year, supported by the contribution from newly consolidated VALUE ARK CONSULTING, in addition to the contribution from the increase in gross profit from progress in charge-up negotiations at COPRO-ENGINEERED. （Newly C
Slide 9: Non-Consolidated Results of Subsidiaries
Non-Consolidated Results of Subsidiaries COPRO-ENGINEERED. Co., Ltd. Sales by Subsidiary （millions JPY） （millions JPY） FYE2021 FYE2022 Year-on-year 12,000 Nine Ratio to Nine Ratio to (%) (amount) months sales months sales Net sales 11,068 100.0％ 11,032 100.0％ △0.3％ △35 COPRO-ENGINEERED 8,000 Cost of
Slide 10: 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 11: Breakdown of Sales & KPIs (Construction and Plant Engineers)
1. Major Topics from 2nd Quarter Financial Results Announcement 2. Consolidated Financial Highlights 3. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 4. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business
Slide 12: Sales by Client and Area
Sales by Client and Area • In line with progress in deepening sales, targeted client sales improved gradually over the quarter, and 3rd Quarter period (October to December) grew +2.9% YoY (1st Quarter: YoY △11.7%; 2nd Quarter: YoY+5.5%). • Due to increased urban redevelopment projects, sales in the
Slide 13: Sales by Industry
Sales by Industry • The number of orders immediately after commencement of construction was on the rise against the backdrop of urban redevelopment projects, and sales of construction grew. Plants also remained strong. On the other hand, facilities sales declined due to a decrease in projects before
Slide 14: Number of Engineers & Occupancy Rate
Number of Engineers & Occupancy Rate • The number of engineers at the end of 3rd Quarter was 2010, down 44 from the end of the same period in the previous fiscal year. • The occupancy rate at the end of 3rd Quarter was 97.3%, down 0.5 percentage points from the end of the same period in the previous
Slide 15: Recruitment / Turnover, Retention Rate & Contract Renewal
Recruitment / Turnover, Retention Rate & Contract Renewal • Cumulative 3rd Quarter recruitment of engineers was largely unchanged YoY. Especially in mid-career recruitment, while the number of hires of experienced employees, which we have been strengthening since the beginning of the period, rose fr
Slide 16: Average Monthly Contract Amount per Engineer by Years of Experience
Average Monthly Contract Amount per Engineer by Years of Experience • As a result of progress in charge-up negotiations, the company-wide average contract unit price as of the end of the current 3rd Quarter increased by +12 thousand yen YoY and +1 thousand yen QoQ. Year-on-year Quarterly Trends （ten
Slide 17: Breakdown of Sales & KPIs (Machinery Design Engineers)
1. Major Topics from 2nd Quarter Financial Results Announcement 2. Consolidated Financial Highlights 3. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 4. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business
Slide 18: Sales by Area and Industry
Sales by Area and Industry • In the dispatch business, due to an increase in orders from new clients, particularly net sales during 3rd Quarter period (September to November) in the Tokai region were up 17.2% QoQ. • In the contracting business, due to solid performance in the transportation equipmen
Slide 19: Number of Engineers & Occupancy Rate
Number of Engineers & Occupancy Rate • The number of engineers at the end of 3rd Quarter was 106. • The occupancy rate at the end of this 3rd Quarter was 99.1%. Accompanying cost reductions in the contracting business, the Company has achieved a higher occupancy rate by promoting shift of contracted
Slide 20: Recruitment / Turnover, Retention Rate & Contract Renewal
Recruitment / Turnover, Retention Rate & Contract Renewal • Started full-scale recruitment activities from 3rd Quarter. Aim to increase the number of employees from 4th Quarter. Recruitment / Turnover Retention Rate FYE2022 FYE2021 FYE2022 FYE2022 Six months (forecast) (June-November) 1Q 2Q 3Q 4Q 1Q
Slide 21: Average Hourly Contract Amount by Years of Experience
Average Hourly Contract Amount by Years of Experience • With charge-up in mind in April 2022, the Company will promote contracts for shift aimed at charge-up and at higher wages in new transactions. Average Hourly Contract Amount（Dispatch business） （JPY/Hour） 3,749 3,748 3,359 3,343 3,260 3,267 2,83
Slide 22: FYE2022 Business Outlook and Financial Forecast
1. Major Topics from 2nd Quarter Financial Results Announcement 2. Consolidated Financial Highlights 3. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 4. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business
Slide 23: FYE2022 Business Outlook
FYE2022 Business Outlook ▪COPRO-ENGINEERD. Co., Ltd.（Dispatching business of construction and plant engineers） Partly due to the success of the promotion of sales reforms, 3rd Quarter has been able to acquire about double the number of projects compared to the previous fiscal year, and demand is tre
Slide 24: FYE2022 Financial Forecast
FYE2022 Financial Forecast （millions JPY） FYE2021 FYE2022 Year-on-year Full-year Full-year Ratio to sales (revised forecast Ratio to sales (amount) (%) on Aug. 11) Net sales 14,836 100.0％ 16,943 100.0％ +14.2％ +2,106 Cost of sales 10,539 71.0％ 11,788 69.6％ +11.9％ +1,248 Gross profit 4,297 29.0％ 5,155
Slide 25: Returning Shareholders
1. Major Topics from 2nd Quarter Financial Results Announcement 2. Consolidated Financial Highlights 3. Breakdown of Sales & Key Performance Indicators （Dispatching business of construction and plant engineers） 4. Breakdown of Sales & Key Performance Indicators （Dispatching and contracting business
Slide 26: Returning Shareholders
Returning Shareholders 【Basic Policy】 Our basic policy is to continue paying a stable dividend aiming for a consolidated dividend payout of at least 30% while heeding a balance with investment that will contribute to future business expansion. ✓ Annual Dividend for FYE2022 is expected to be 40, an i
Slide 27: 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