Ut Group Co.,ltd. · TSE:2146

Ut Group Co.,ltd — Q3 FY3/2024 Earnings Presentation

43 slides from Ut Group Co.,ltd's earnings presentation, Feb 9, 2024

  1. Slide 1: 3Q of Fiscal Year Ending March 31, 2024 Financial Results

    3Q of Fiscal Year Ending March 31, 2024 Financial Results February 9, 2024 UT Group Co., Ltd. Securities Code: 2146(TSE Prime Market) Copyright © UT Group Co., Ltd. All Rights Reserved.

  2. Slide 2: FY3/2024 3Q Financial Results

    FY3/2024 3Q Financial Results Copyright © UT Group Co., Ltd. All Rights Reserved. 1 1

  3. Slide 3: Highlights

    FY3/2024 3Q Financial Results Highlights  Continued stagnant demand for workers in the semiconductor-related sector  Continued strategic investments to build a system for hiring 2,000 employees per month for future growth despite curbing cost in line with the stagnant demand  Achieved record-high

  4. Slide 4: Hiring Activities

    FY3/2024 3Q Financial Results Hiring Activities Quarterly domestic hires and hiring expenses (100 million yen) (Person) Number of domestic hires in the quarter (LH) Hiring expenses(RH) 5,000 25 New 4,000 graduates New 20 graduates Increased the monthly hires to 3,000 New graduates 15 1,600 workers i

  5. Slide 5: Quarterly Changes in Sales and Number of Technical Employees

    FY3/2024 3Q Financial Results Quarterly Changes in Sales and Number of Technical Employees (Persons, million yen) FY3/2020 FY3/2021 FY3/2022 FY3/2023 FY3/2024 Tech employees (Domestic): -949 Tech employees (Domestic): +4,102 Tech employees (Domestic): +7,900 Tech employees (Domestic): +300 Tech empl

  6. Slide 6: Summary of Statement of Income

    FY3/2024 3Q Financial Results Summary of Statement of Income ［million yen］ 3Q of FY3/2023 3Q of FY3/2024 Y-o-Y change Results % to net sales Results % to net sales Amount % Net sales 128,092 100.0% 125,124 100.0% -2,967 -2.3% Gross profit 25,147 19.6％ 23,368 18.7% -1,778 -7.1% SG&A expenses 19,540 1

  7. Slide 7: Summary of Consolidated Balance Sheets

    FY3/2024 3Q Financial Results Summary of Consolidated Balance Sheets ［million yen］ Change from the end of March 31, 2023 Dec. 31, 2023 Current assets the previous FY % to total % to total • Decrease in cash and deposits Results Results Amount % assets assets • Decrease in notes and accounts receivab

  8. Slide 8: FY3/2024 Earnings Forecasts

    FY3/2024 3Q Financial Results FY3/2024 Earnings Forecasts  In addition to a delay in earnings progress up to 1H, the current demand trends from 3Q onward are suggesting that it is likely to take some time for a full-fledged recovery.  We continue to make strategic investments such as building a sy

  9. Slide 9: Change in shareholder return policy and FY3/2024 dividend forecast

    FY3/2024 3Q Financial Results Change in shareholder return policy and FY3/2024 dividend forecast After change Before change (to be adopted for shareholder return in FY3/2024) Deliver shareholder returns through dividend payments or share buybacks that help to improve capital efficiency, using a tota

  10. Slide 10: Results by segment

    Results by segment Copyright © UT Group Co., Ltd. All Rights Reserved. 9 9

  11. Slide 11: Establish a dominant share in the manufacturing dispatch market

    TOPICS Concentrate on the manufacturing dispatch business and sell the IT/construction engineer business Acquisition in the manufacturing dispatch business Sale of the engineer dispatch business BeNEXT Partners Inc. UT Technology Co., Ltd. (Plan to acquire its shares on April 1, 2024) UT Constructio

  12. Slide 12: Newly consolidating Hitachi Ibaraki Technical Service

    TOPICS Newly consolidating Hitachi Ibaraki Technical Service Hitachi Ibaraki Technical Service Ltd. (To be acquired on March 1, 2024) ・Plan to acquire 51.0% of shares from Hitachi Ltd. ・Outsourcing services and worker dispatch business for design and manufacturing of electrical machinery and equipme

  13. Slide 13: Business Results by Segment

    Results by segment Business Results by Segment Manufacturing Business Area Business Industrial & Commercial Machinery/Electronics Transportation Equipment Net increase of 348 employees in 3Q. The enhanced Overall demand for workers was sluggish. Hiring was The impact of operating adjustment caused b

  14. Slide 14: Inter-Segment Transfer of Technical Employees in April 2023

    Results by segment Inter-Segment Transfer of Technical Employees in April 2023  Moved some clients of the Manufacturing Business to the Area Business in order to more closely provide services to them.  This led to a transfer of approximately 1,900 technical employees to the Area Business as of the

  15. Slide 15: Results by Segment: Net Sales and Sales Composition

    Results by segment Results by Segment: Net Sales and Sales Composition （3Q FY3/2023 was retroactively revised data for reference） Net sales (Million yen) Sales composition 128,092 125,124 6,871 +9.7% Overseas 5.4% 6.0% 7,536 6,772 +2.4% 5.3% 5.5% 6,935 13,936 -3.1% Engineering 10.9% 10.8% 13,504 Sol

  16. Slide 16: Net Sales by Segment

    Results by segment Net Sales by Segment （3Q FY3/2023 was retroactively revised data for reference） Manufacturing Business (Million yen) Area Business (Million yen) Solution Business (Million yen) 52,933 6.5% 49,517 47,576 0.1% 47,629 3.1% 13,936 13,504 3Q 3Q 3Q 3Q 3Q 3Q FY3/2023 FY3/2024 FY3/2023 FY

  17. Slide 17: EBITDA by Segment

    Results by segment EBITDA by Segment （3Q FY3/2023 was retroactively revised data for reference） Manufacturing Business (Million yen) 5,000 Area Business (Million yen) 18.0% Solution Business (Million yen) 4,500 16.0% 7,831 23.0% 21.9% 63.6% 4,000 18.0% 14.0% 2,925 8,000 3,500 16.0% 6,030 12.0% 7,000

  18. Slide 18: Technical employees by Segment

    Results by segment Technical employees by Segment （3Q FY3/2023 was retroactively revised data for reference） Manufacturing Business (Person) Area Business (Person) Solution Business (Person) 6.3% 15,575 2.3% 15,934 5.8% 12,117 11,356 3,116 3,298 3Q 3Q 3Q 3Q 3Q 3Q FY3/2023 FY3/2024 FY3/2023 FY3/2024

  19. Slide 19: Manufacturing Business Segment Results

    Manufacturing Business Segment Results（FY3/2023 was retroactively revised data for reference） Net Sales (Million yen) Technical employees (Person) Sales and technical employees FY3/2023 FY3/2024 ・Transportation equipment-related demand FY3/2023 FY3/2024 3.9% 7.9% 7.6% 5.4% 6.3% increased, and the nu

  20. Slide 20: Net Sales by Subsegment

    Manufacturing Business Net Sales by Subsegment（FY3/2023 was retroactively revised data for reference） Industrial and Commercial Machinery Electronics (Million yen) Industrial and Commercial Machinery FY3/2023 FY3/2024 FY3/2023 FY3/2024 ・A net drop in tech workers due to the incidents of certain clie

  21. Slide 21: Area Business Segment Results

    Area Business Segment Results（FY3/2023 was retroactively revised data for reference） Net Sales (Million yen) Technical employees (Person) Sales and technical employees FY3/2023 FY3/2024 FY3/2023 FY3/2024 ・The number of tech employees increased by 348 in 3Q. 2.3% 1.3% 0.1% 0.1% 2.3% 1.4% ・The Area Bu

  22. Slide 22: Solution Business Segment Results

    Solution Business Segment Results Net Sales (Million yen) Technical employees (Person) Sales and technical employees FY3/2023 FY3/2024 FY3/2023 FY3/2024 ・No impact of new consolidation in FY3/2023 ・Accelerate activities to make proposals aimed 4.8% 6.6% 5.8% at acquiring new solution projects. 2.0%

  23. Slide 23: Engineering Business Segment Results

    Engineering Business Segment Results Net Sales (Million yen) Technical employees (Person) Sales and technical employees FY3/2023 FY3/2024 FY3/2023 FY3/2024 • In 2023, 184 new graduates started operations as early as possible. 1.1% 1.3% 4.9% 0.0% 1.0% 1.0% • Demand for both construction and IT engine

  24. Slide 24: Engineering Business Net Sales by Subsegment

    Engineering Business Net Sales by Subsegment Construction engineers (Million yen) IT engineers (Million yen) Construction engineers FY3/2023 FY3/2024 FY3/2023 FY3/2024 • Demand for workers was strong, mainly for facilities and plants. 0.3% 5.3% 2.6% • There was a strong sense of worker shortage, 10.

  25. Slide 25: Overseas Business Segment Results

    Overseas Business Segment Results Net Sales (Million yen) Technical employees (Person) Sales and technical employees ・Due to stagnant exports in Vietnam, demand for FY3/2023 FY3/2024 FY3/2023 FY3/2024 workers was sluggish, mainly in the 12.1% 6.5% 7.7% manufacturing industry. Partly shifted 7.4% 6.0

  26. Slide 26: (Ref.) Net sales by Business segment (retroactively revised data)

    Results by segment (Ref.) Net sales by Business segment（retroactively revised data for the past two years） Manufacturing Business (Million yen) エリア事業 (Million yen) Before １Q ２Q ３Q ４Q 通期 Before １Q ２Q ３Q ４Q 通期 Net Sales 17,415 18,371 19,864 20,324 75,975 Net Sales 10,387 10,643 11,722 11,857 44,610 EB

  27. Slide 27: (Ref.) Net sales by subsegment of Manufacturing Business

    Results by segment (Ref.) Net sales by subsegment of Manufacturing Business（retroactively revised data for the past two years） Industrial and Commercial Machinery Electronics (Million yen) (Million yen) Before １Q ２Q ３Q ４Q Full year Before １Q ２Q ３Q ４Q Full year FY3/2022 4,810 5,013 5,302 5,343 20,468

  28. Slide 28: Appendix

    Appendix Copyright © UT Group Co., Ltd. All Rights Reserved. 27

  29. Slide 29: Analysis of SG&A expenses

    Appendix Analysis of SG&A expenses (million yen) FY3/2020 FY3/2021 FY3/2022 FY3/2023 FY3/2024 Full Full Full Full Full １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q year year year year year personnel expenses 1,574 1,522 1,530 1,467 6,093 1,665 1,981 1,828 1,837 7,311 2,246 2,362 2,547

  30. Slide 30: Status of Share Buybacks and Cancellation

    補足資料（株主還元） Status of Share Buybacks and Cancellation Objective and details of share buybacks Status of Stock Acquisition (Completed on August 25, 2023) Objective ・Period of acquisition: May 16, 2023 to August 25, 2023 Implemented as the means of providing shareholder return in FY3/2023 ・Total number

  31. Slide 31: Performance-linked stock acquisition rights

    Appendix Performance-linked stock acquisition rights Overview of the performance-linked Resolved by the Board of Directors When to recognize stock-based compensation expenses (2020/5/20) stock acquisition rights Because the condition A was met in FY3/2023, stock-based Objective compensation expenses

  32. Slide 32: Corporate Outline

    Appendix Corporate Outline Corporate Outline As of Dec. 31, 2023 Group Companies As of Dec. 31, 2023 Corporate name: UT Group Co., Ltd. UT Aim Manufacturing personnel services UT Technology Founded: April 2, 2007 IT engineer outsourcing Capital: 725 million yen UT Construction UT Connect Constructio

  33. Slide 33: The Leading Company in Manufacturing Dispatch Industry

    Appendix The Leading Company in Manufacturing Dispatch Industry FY3/2023 Creating vigorous workplaces empowering workers. Domestic Technical employees Adopting the twin customer strategy that identifies both workers and companies as clients, 31,936 UT Group transformed the process of manufacturing w

  34. Slide 34: Twin-Customer Strategy and Career Platform

    Appendix Twin-Customer Strategy and Career Platform Stable supply of highly-skilled personnel Individuals Companies UT Group Major manufacturing Job seekers, employees companies Provision of high-quality workplaces Copyright © UT Group Co., Ltd. All Rights Reserved. 33

  35. Slide 35: Twin-Customer Strategy and Career Platform

    Appendix Twin-Customer Strategy and Career Platform Stable supply of high-skill personnel Boost income Change labor costs to Career variable costs advancement Dispatch quality workers Career formation Labor issue support function solutions UT Group Enhance Comply with l Raise skills Improve a sense

  36. Slide 36: Enhancement of the systems that enable technical employees to advance their careers

    Appendix Enhancement of the systems that enable technical employees to advance their careers A system that allows manufacturing operators and Good Job engineers to freely choose a workplace (Own workplaces can be selected) Client companies A system that supports career changes from One UT manufactur

  37. Slide 37: Strongly promote SME engineer development

    Appendix Strongly promote SME engineer development ・Established four technology skill development centers for manufacturing engineers in the semiconductor field (Dec. 2020: Kitagami City in Iwate; March 2021: Yokkaichi City in Mie and Kumamoto City in Kumamoto; May 2021 Osaka City in Osaka) ・Targeti

  38. Slide 38: Restrain new hires from quitting by consistent support for their growth

    Appendix Restrain new hires from quitting by consistent support for their growth  The Area Business introduces in stages the On-Boarding Package, which removes factors to quit and creates factors to stay Before adopting the On-Boarding Package Introduction of the On-Boarding Packages changes 11.6%

  39. Slide 39: Trends of Business Results

    Appendix Trends of Business Results Net sales (100 million yen) EBITDA(LH) and EBITDA% (RH) (100 million yen, %) 1,800 160 EBITDA 10.0 1,600 140 EBITDA% 1,400 8.0 120 1,200 100 6.0 1,000 80 800 60 4.0 600 400 40 2.0 200 20 0 0 0.0 2014/03 2015/03 2016/03 2017/03 2018/03 2019/03 2020/03 2021/03 2022/

  40. Slide 40: Trends of Stock Price

    Appendix Trends of Stock Price Stock price (LH) and trading volume (RH) (Yen / 10,000 shares) Market capitalization (100 million yen) 5,000 400 2,000 350 4,000 300 1,800 3,000 250 200 1,600 2,000 150 100 1,400 1,000 50 0 0 1,200 2017 2018 2019 2020 2021 Jan. Jun. Jul. Jan. Jun. Jul. Jan. Jun. Jul. J

  41. Slide 41: INTEGRATED REPORT 2023 was released (Sep. 2023)

    Appendix INTEGRATED REPORT 2023 was released (Sep. 2023) What will be "human capital management that is unique to UT Group"? Non-regular workers account for about 40% of the workforce in Japan, and their workstyles are diversifying. Now, how can we expand the opportunities for non-regular workers to

  42. Slide 42: Sustainability Data Book 2023 was released

    Appendix Sustainability Data Book 2023 was released（Mar. 2023） The "UT Group Sustainability Data Book 2023" explains our thoughts, initiatives, indicators, etc. regarding sustainability that are not included in the Integrated Reports. The contents are categorized according to the Company's four key

  43. Slide 43: Create vigorous workplaces empowering workers.

    Create vigorous workplaces empowering workers. ® ＵT Group Co., Ltd. Disclaimer [Inquiries] This document has been prepared solely for the purpose of providing information regarding the Company’s business forecasts. The UT Group Co., Ltd. forward-looking comments and forecasts expressed in this docum

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