Copro-holdings Co., Ltd. · TSE:7059
Copro-holdings — Q3 FYE2024 Earnings Presentation
29 slides from Copro-holdings's earnings presentation, Feb 14, 2024
Slide 1: Fiscal Year Ending March 31, 2024 Financial Results for Nine Months
・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 Nine Months Tokyo Stock Exchange-Prime, Nagoya Stock Exchange Premier (Ticker Symbol: 7059) February 14, 2024
Slide 2: Section agenda
SECTION 01 Summary of the Consolidated Financial Results for Nine Months 02 Analysis of KPIs 03 Business Summary 04 Earnings Forecast for FYE2024 05 Dividend Forecast for FYE2024 ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 1
Slide 3: FYE2024 3Q Message from Management
FYE2024 3Q Message from Management Our main business of construction technician dispatch is progressing at a brisk speed The serious manpower shortage situation is persisting against the backdrop of regulations capping overtime work that will go into effect in April 2024 and large-scale construction
Slide 4: Summary of the Consolidated Financial Results for Nine Months
SECTION 01 Summary of the Consolidated Financial Results for Nine Months ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 3
Slide 5: Highlights of the Consolidated Financial Results for Nine Months
Highlights of the Consolidated Financial Results for Nine Months Number of Consolidated Net Sales Operating Profit Technicians and Engineers 3,709people 17,496million yen 1,406million yen (YoY+31.2％) (YoY+28.8％) Historic (YoY+63.0％) (Forecast Progress 86.8％) (Forecast Progress 72.0％) al (Forecast Pr
Slide 6: Consolidated Financial Results for Nine Months
Consolidated Financial Results for Nine Months (million of yen） FYE2023 FYE2024 YoY Change Forecast Progress 3Q Vs Full Year 3Q Amount of Full Year Forecast Ratio Pct Change cumulative Results cumulative Change Forecast Progress Net sales 13,584 73.9% 17,496 100.0% +28.8% +3,912 24,298 72.0% Cost of
Slide 7: Quarterly Consolidated Financial Results
Quarterly Consolidated Financial Results • 3rd Quarter net sales and technician numbers both increased from the previous 2nd quarter. • Record high on a quarterly basis. 6,359 6,000 5,731 3,709 4,000 5,406 3,515 5,500 5,206 3,314 3,500 4,914 5,000 3,036 4,421 2,826 4,249 3,000 4,500 4,148 2,575 4,03
Slide 8: Nine Month Financial Results by Subsidiaries
Nine Month Financial Results by Subsidiaries • Sales of COPRO CONSTRUCTION. Co., Ltd. increased significantly due to the highest number of recruits ever. This subsidiary also absorbed the increase in recruiting costs and personnel costs to achieve an increase in operating profit of 404 million yen Y
Slide 9: Analysis of KPIs
SECTION 02 Analysis of KPIs ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 8
Slide 10: KPIs by Business
KPIs by Business • The number of recruits grew considerably, particularly at COPRO CONSTRUCTION. Co., Ltd. This led to the number of technical employees increasing by 883, or +31.2% YoY, to 3,709. - (people, thousands of yen) FYE2023 FYE2024 FYE2024 3Q Full 3Q Full-year 1Q 2Q 3Q 1Q 2Q 3Q YoY cumulat
Slide 11: Construction Technician Dispatching Business KPIs
Reference） Construction Technician Dispatching Business KPIs • The cumulative number of recruits for 3Q increased by 50.1% YoY to 1,539 people due to a significant increase in the number of inexperienced recruits because of strengthened process management for recruiting. • By doing more to eliminate
Slide 12: Mechanical Design and Development Engineer Dispatching Business 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 13: 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 14: Business Summary
SECTION 03 Business Summary ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 13
Slide 15: 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 16: Construction Industry Trends: Demand Will Continue 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 17: Our Growth Strategy (Construction Technician Dispatch)
Our Growth Strategy (Construction Technician Dispatch) Strategy Building a Strong Human Resources Strategy 1 2 Strengthening the Support System and Supply Network in Preparation for Improving the Retention Rate of Technical Accelerating Labor Shortages Employees Improve recruitment efficiency (the u
Slide 18: Strategy 1: Building a Strong Human Resources Supply Network
Strategy ①: Building a Strong Human Resources Supply Network in Preparation for Accelerating Labor Shortages • On a YoY basis, the trend of improvement in yield rates continued from 1H due to the thorough implementation of “process management.” • On a versus target basis, in the non-cumulative 3Q, m
Slide 19: Strategy 1: Unit Price for Recruitment and Growth Rate
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 20: Strategy 2: Improving the Retention Rate of Technical Employees
Strategy ②: Strengthening the Support System and Improving the Retention Rate of Technical Employees • The cumulative retention rate for 3Q was 78.2%, falling 3.6 pts YoY. The rate was impacted by resignations within one year of joining the company increasing in 1Q as well as by senior personnel ret
Slide 21: Opening of Semiconductor Engineer Training Center
Business Overview (Mechanical Design and Development Engineer Dispatching Business): Opening of Semiconductor Engineer Training Center • On February 1, 2024, COPRO TECHNOLOGY. Co., Ltd. opened and commenced operation of “Semicon Techno Lab,” a training center dedicated to the development of engineer
Slide 22: Acquiring the SES Business of Pacific Information Consultants
Business Overview (SES): Acquiring the SES Business of Pacific Information Consultants Co., Ltd. • As of November 30, 2023, our consolidated subsidiary COPRO TECHNOLOGY. Co., Ltd. (“COPRO TECHNOLOGY”) took over the system engineering service business (SES) from Pacific Information Consultants Co., L
Slide 23: Earning Forecast for FYE2024
SECTION 04 Earning Forecast for FYE2024 ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 22
Slide 24: Full FY Earnings Forecast for FYE2024 (Summary)
Full FY Earnings Forecast for FYE2024 (Summary) Number of Consolidated Net Sales Operating Profit Technicians and Engineers 4,271people 24,298Mln yen 2,042Mln yen (YoY+40.7％) (YoY+29.3％) (YoY+54.5％) Non-GAAP Operating Profit Profit Attributable to Owners Ordinary Profit of Parent 2,342Mln yen 2,115M
Slide 25: Upward Revision of FYE2024 Consolidated Earnings Forecast
Upward Revision of FYE2024 Consolidated Earnings Forecast （million of yen） FYE2023 FYE2024（Forecast） Full year YoY Full year (Revision on Ratio Amount of Nov.14) Pct change Change Net sales 18,791 24,298 100.0% +29.3% +5,506 Cost of sales 13,216 17,233 70.9% +30.4% +4,016 Gross profit 5,575 7,065 29
Slide 26: Status for Complying with Criteria to Maintain our 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: FYE2024 Dividend Forecast
SECTION 05 FYE2024 Dividend Forecast ©2024 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