Copro-Holdings Co., Ltd. · TSE:7059
Copro-Holdings — H1 FYE2024 Earnings Presentation
29 slides from Copro-Holdings's earnings presentation, Nov 14, 2023
Slide 1: Financial Results for 1st Half, Fiscal Year Ending March 31, 2024
・当社イメージキャラクター：お笑いコンビ 宮下草薙 ・当社マスコット：コプ郎 Fiscal Year Ending March 31, 2024 Financial Results for 1st Half COPRO-HOLDINGS. Co., Ltd. Tokyo Stock Exchange-Prime, Nagoya Stock November 14, 2023 Exchange Premier (Ticker Symbol: 7059)
Slide 2: Section agenda
SECTION 01 Summary of the Consolidated Financial Results for 1st Half 02 Analysis of KPIs 03 Business Summary 04 Upward Revision of FYE2024 Earnings Forecast 05 Upward Revision of FYE2024 Dividend Forecast ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 1
Slide 3: Summary of the Consolidated Financial Results for 1st Half
SECTION 01 Summary of the Consolidated Financial Results for 1st Half ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 2
Slide 4: Highlights of the Consolidated Financial Results for 1st Half
Highlights of the Consolidated Financial Results for 1st Half Number of Consolidated Net Sales Operating Profit Technicians and Engineers 3,515people 11,137million yen 737million yen (YoY+36.5％) (YoY+28.5％) (YoY+56.9％) 過去 (Vs. forecast -3.8％) (Vs. forecast -0.6％) (Vs. forecast +48.9％) 最高 Non-GAAP Op
Slide 5: Consolidated Financial Results for 1st Half
Consolidated Financial Results for 1st Half （million of yen） FYE2023 FYE2024 YoY Change Vs. Forecast Amount of Amount of 1H results Ratio 1H results Ratio Pct Change Pct Change Change Change Net sales 8,670 100.0％ 11,137 100.0％ +28.5％ +2,467 -0.6% -65 Cost of sales 6,086 70.2％ 8,072 72.5% +32.6％ +1,
Slide 6: Quarterly Consolidated Financial Results
Quarterly Consolidated Financial Results • 2nd Quarter net sales and technician numbers both increased from the previous 1st quarter. • Record high on a quarterly basis. 5,731 5,406 4,000 5,500 5,206 3,515 4,914 3,314 5,000 3,500 4,421 3,036 4,500 4,249 2,826 4,148 3,000 4,038 3,846 2,575 4,000 2,39
Slide 7: 1st Half Financial Results by Subsidiaries
1st Half Financial Results by Subsidiaries • Sales of COPRO EG increased significantly due to the highest number of recruits ever. Operating profit increased by 169 million yen YoY, absorbing the increase in standby labor costs during the training period, recruitment fees, and personnel costs as the
Slide 8: Analysis of KPIs
SECTION 02 Analysis of KPIs ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 7
Slide 9: KPIs by Subsidiaries
KPIs by Subsidiaries • Due to an increase in the number of recruits centering on our mainstay COPRO EG, the number of technical employee was 3,515, an increase of 36.5% YoY, and an increase of 940 people. • Due to a worsening of the retention rate at COPRO EG, the retention rate for the first half w
Slide 10: Construction Technician Dispatching Business KPIs
Reference） Construction Technician Dispatching Business KPIs • The number of recruits increased by 76.3% YoY to 1,072 people due to a significant increase in the number of inexperienced recruits because of strengthened process management. • The 2Q utilization rate was 94.6%, an improvement of 1.6pts
Slide 11: Mechanical Design and Development Engineer Dispatching and Contracting KPIs
Reference） Mechanical Design and Development Engineer Dispatching and Contracting Business KPIs • The number of new recruits increased significantly due to active investment in recruiting costs and an increase in the number of people in charge of recruitment, with the number of engineers increasing
Slide 12: SES Business KPIs
Reference） SES Business KPIs • Our focus is on the operation of “Bscareer IT”, a project introduction site for IT engineers that opened in March 2023. • The number of applicants and the number of recruits are on the rise, partly due to investment in advertising expenses in conjunction with the relea
Slide 13: Business Summary
SECTION 03 Business Summary ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 12
Slide 14: Construction Industry Trends: Technician Dispatching Market Expanding
Business Overview (Construction Technician Dispatching): Construction Industry Trends The technician dispatching market is in an expanding trend due to the chronic labor shortage Human resources services for the construction industry Number of construction industry employees*1 - Market size forecast
Slide 15: Construction Industry Trends: Demand Continues to Grow
Business Overview (Construction Technician Dispatching): Construction Industry Trends Demand will continue to grow due to the application of the revised Labor Standards Law*1 and active construction investment Construction industry continues to see The approaching 2024 problem large-scale projects W
Slide 16: Strategy and KPI Summary (Construction Technician Dispatching)
Strategy and KPI Summary (Construction Technician Dispatching) Strategy Building a strong human Strategy Strengthening the support system 1 2 resources supply network in and improving the retention rate preparation for accelerating labor of technical employees shortages Vs. Vs. KPIs 1H results YoY K
Slide 17: Strategy 1: Building a Strong Human Resources Supply Network
Strategy ①: Building a Strong Human Resources Supply Network in Preparation for Accelerating Labor Shortages • In order to strengthen our recruiting system, which is the basis for business expansion, we are thoroughly implementing "process management" and improving each yield rate. Initiatives to im
Slide 18: Strategy 1: Recruitment Growth and Lower Unit Price
Strategy ①: Building a Strong Human Resources Supply Network in Preparation for Accelerating Labor Shortages • Efforts to strengthen the recruiting system have been successful, and the growth rate for the number of technical employees remains at a high level. • Due to the improved yield rate, the un
Slide 19: Strategy 2: Strengthening Support System and Retention Rate
Strategy ②: Strengthening the Support System and Improving the Retention Rate of Technical Employees • In the 1Q of FYE2024, due to some mismatches in assignments because of an increase in the number of recruits, and a lack of follow-up after assignment, the number of technical employees resigning w
Slide 20: Opening of Semiconductor Training Center
Business Overview (Mechanical Design and Development Engineer Dispatching Business): Opening of Semiconductor Training Center • As the movement to bring semiconductor production back to Japan is gaining momentum, and in response to the increasing demand for field engineers who are stationed 24 hours
Slide 21: Bscareer Kiden Opens on November 7, 2023
“Bscareer Kiden” Opens on November 7, 2023 • “Bscareer Kiden”, a project introduction site for engineers in the mechanical and electrical field, opened on November 7, 2023. • Following on from “Bscareer IT”, we have strengthened our branding by appointing the comedy duo Miyashita Kusanagi as brand a
Slide 22: Upward Revision of FYE2024 Earnings Forecast
SECTION 04 Upward Revision of FYE2024 Earnings Forecast ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 21
Slide 23: Upward Revision of the Full FY Earnings Forecast (Summary)
Upward Revision of the Full FY Earnings Forecast for FYE2024 (Summary) Number of Consolidated Net Sales Operating Profit Technicians and Engineers Upward Revision 4,271people 24,298Mln yen 2,042Mln yen (YoY+40.7％) (YoY+29.3％) (YoY+54.5％) (Initial forecast unchanged) （Vs. initial forecast+13.4％） Non-
Slide 24: Upward Revision of FYE2024 Consolidated Earnings Forecast
Upward Revision of FYE2024 Consolidated Earnings Forecast • For each type of profit, we have upwardly revised the first half's upside. • In order to prepare for the increasing demand for human resources due to the application of upper limits on overtime work, we plan to actively invest in recruiting
Slide 25: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan • In the main business of construction engineer dispatching, the Company expects to realize the results of the sales and recruitment reforms it has promoted up to the previous fiscal year, and to shift to the "Profit Generation Phase" that will enter the h
Slide 26: Status for Complying with Criteria to Maintain Prime Market Listing
Status for Complying with Criteria to Maintain our Prime Market Listing • In order to meet the criteria of “market capitalization of ¥10 billion or more for tradable shares” to maintain our listing, and recognizing that further improvement in our stock price, which is a component of market capitaliz
Slide 27: Revision of FYE2024 Dividend Forecast (Dividend Increase)
SECTION 05 Revision of FYE2024 Dividend Forecast (Dividend Increase) ©2023 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 26
Slide 28: Revision of Dividend Forecast (Dividend Increase)
Revision of Dividend Forecast (Dividend Increase) 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 dividen
Slide 29: 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