Copro-holdings Co., Ltd. · TSE:7059

Copro-holdings — Q2 FYE3/2025 Earnings Presentation

39 slides from Copro-holdings's earnings presentation, November 2024

Slide 1: 2nd Quarter of FYE3/2025 Financial Results
2nd Quarter of FYE3/2025 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: Message from the Management
Message from the Management We are relentlessly heading straight toward upward revising the targets of the Medium-Term Management Plan!! ✓ The business environment is favorable with high manpower demand due to the upper limit cap on overtime work starting from April 2024 and big projects in the cons
Slide 3: Agenda
Summary of Financial Results 01 for 2Q FYE3/2025 02 Analysis of KPIs FYE3/2025 Business Summary 03 and Growth Strategy 04 FYE3/2025 Earnings Forecast SECTION 05 FYE3/2025 Dividend Forecast Progress of the Medium-Term 06 Management Plan 07 Appendix ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved.
Slide 5: 2Q FYE3/2025 Consolidated Financial Results Highlights
2Q FYE3/2025 Consolidated Financial Results Highlights Point 1 With the increase in demand following the upper limit cap on overtime work, the strengthening of our recruiting capabilities with a particular focus on “low cost recruitment" proved successful, with the number of consolidated technical e
Slide 6: Consolidated Financial Results for 1H FYE3/2025
Consolidated Financial Results for 1H FYE3/2025 (Millions of yen) FYE3/2024 FYE3/2025 % of % of YoY change 1H 1H net sales net sales % Amount vs. Forecast Net sales 11,137 100.0％ 14,227 100.0% +27.7% +3,090 +2.0% Cost of sales 8,072 72.5% 10,390 73.0% +28.7% +2,318 +3.6% Gross profit 3,065 27.5％ 3,8
Slide 7: Quarterly Consolidated Financial Results
Quarterly Consolidated Financial Results Point 1 Second quarter net sales and the number of technical employees both increased from the previous quarter. Point 2 Record high on a quarterly basis. 7,356 6,870 7,500 4,500 7,000 6,601 6,359 4,350 4,428 4,000 6,500 6,000 5,731 3,929 5,406 3,709 3,500 5,
Slide 8: 2Q FYE3/2025 Results by Subsidiary
2Q FYE3/2025 Results by Subsidiary Point 1 As for COPRO CONSTRUCTION, operating profit increased significantly by 42.5% YoY due to a decline in fixed costs accompanying sales growth. Point 2 COPRO TECHNOLOGY aggressively invested in advertising and publicity expenses to expand the number of recruits
Slide 10: 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 967, or +27.5% YoY, to 4,482. - (People, 1,000 yen) FYE3/2024 FYE3/2025 1H 2H Full Year 1H YoY % Change YoY Change No. of recruits 1,16
Slide 11: (Reference) Construction Technician Dispatching Business
(Reference) Construction Technician Dispatching Business Point 1 Thanks to improvements in process management, the number of recruits increased by 25.7% YoY, a smooth start that exceeded the plan. Point 2 As a result of focusing on the assignment of technical employees on standby to improve operatin
Slide 12: (Reference) Mechanical & Electrical and Semiconductor Engineer Dispatching and Contracting Business
(Reference) Mechanical & Electrical and Semiconductor Engineer Dispatching and Contracting Business Point With a scheme to train inexperienced semiconductor field engineers (semiconductor engineer training center), we attracted major client companies and obtained large orders. Additionally, by stren
Slide 13: (Reference) IT Engineers Dispatching Business and Freelance Business
(Reference) IT Engineers Dispatching Business and Freelance Business Point With the project introduction site for IT engineers “Bscareer IT” getting off the ground, the number of applicants increased by 65.6% YoY. Meanwhile, we were not able to catch up with securing enough projects, resulting in an
Slide 15: Growth Strategy
Growth Strategy Establish the Highest Professional Quality in the Industry Sales ✓With deeply-cultivated sales, expand our market share to mainly major client companies ✓Actively utilize female and inexperienced Sales technical employees to accelerate the increase of the number of technical employee
Slide 16: Sales Strategies: Reinforce Deeply-Cultivated Sales
Sales Strategies: Reinforce Deeply-Cultivated Sales Point 1 To receive stable orders as well as guarantee a comfortable working environment for technical employees, we focus on deeply-cultivated sales for targeted companies centering around major general contractors and subcontractors to expand our
Slide 17: Recruiting Strategy (1): Boost Our Strength in Low Unit Price for Recruitment
Recruiting Strategy (1): Boost Our Strength in “Low Unit Price for Recruitment” Point 1 Mid-career recruitment increased by 10.3% to 505 for 2Q FYE3/2025. Although the unit price for recruitment was slightly up by 7.2% to 313 yen, we maintained a low level while increasing the number of recruits. Po
Slide 18: Retention Strategy: Improve the Retention Rate of Employees in Their 1st & 2nd Years
Retention Strategy: Improve the Retention Rate of Employees in Their 1st & 2nd Years Point The retention rate for 2Q was down 0.7pt to 91.2%. Although the retention rate for the employees who remain with us for three years or more remains at a high level since FYE3/2024, that for the first- and seco
Slide 20: Summary of the Full Year Earnings Forecast for FYE3/2025
Summary of the Full Year Earnings Forecast for FYE3/2025 Point 1 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. Point 2 While continuing to invest in growth, we plan to improve producti
Slide 21: FYE3/2025 Consolidated Earnings Forecast
FYE3/2025 Consolidated Earnings Forecast (Millions of yen) FYE3/2024 FYE3/2025 (Forecast) YoY Change Full Year Ratio Full Year Ratio % Amount 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% +1,674 S
Slide 22: FYE3/2025 KPIs by Business (Forecast)
FYE3/2025 KPIs by Business (Forecast) - (People, 1,000 yen) FYE3/2024 FYE3/2025 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 62 118
Slide 24: 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 26: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: Business Characteristics: A subscription-type business with high growth potential
Business Characteristics A “subscription-type business” with high growth potential ⇒By increasing sales in proportion to the number of dispatched technical employees, stable earnings growth can be expected (Billions of yen, people） 5,168 350 4500 300 Achieved 18 consecutive years of 3,929 30.0 reven
Slide 35: 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 36: 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 37: Branch Offices
Branch Offices Construction Technician Dispatching 9 bases Dispatching and Contracting Business of Mechanical and Semiconductor Engineers 4 bases Dispatch Business of IT Engineer 1 base Overseas 1 base *As of September 2024 ©2024 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 37
Slide 38: Consolidated Financial Results
Consolidated Financial Results Net Sales Operating Profit Non-GAAP Operating Profit (Millions of yen) (Millions of yen) (Millions of yen) 2,700 3,162 30,000 2,141 24,098 2,437 1,621 18,791 1,437 1,841 1,321 14,836 15,589 1,530 1,606 21/3期 FYE3/2021 22/3期 FYE3/2022 23/3期 FYE3/2023 24/3期 FYE3/2024 25/
Slide 39: 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 the Company. ◼ The information contained in this document is based on economic, social, and other conditions generally r

COPRO-HOLDINGS. — Q2 FYE3/2025 Earnings Presentation on 6ix

Copro-holdings — Q2 FYE3/2025 Earnings Presentation

Slide 1: 2nd Quarter of FYE3/2025 Financial Results

Slide 2: Message from the Management

Slide 3: Agenda

Slide 4: Summary of Financial Results for 2Q FYE3/2025

Slide 5: 2Q FYE3/2025 Consolidated Financial Results Highlights

Slide 6: Consolidated Financial Results for 1H FYE3/2025

Slide 7: Quarterly Consolidated Financial Results

Slide 8: 2Q FYE3/2025 Results by Subsidiary

Slide 9: Analysis of KPIs by Business Segment

Slide 10: KPI Trends by Business Segment

Slide 11: (Reference) Construction Technician Dispatching Business

Slide 12: (Reference) Mechanical & Electrical and Semiconductor Engineer Dispatching and Contracting Business

Slide 13: (Reference) IT Engineers Dispatching Business and Freelance Business

Slide 14: FYE3/2025 Growth Strategy

Slide 15: Growth Strategy

Slide 16: Sales Strategies: Reinforce Deeply-Cultivated Sales

Slide 17: Recruiting Strategy (1): Boost Our Strength in Low Unit Price for Recruitment

Slide 18: Retention Strategy: Improve the Retention Rate of Employees in Their 1st & 2nd Years

Slide 19: FYE3/2025 Earnings Forecast

Slide 20: Summary of the Full Year Earnings Forecast for FYE3/2025

Slide 21: FYE3/2025 Consolidated Earnings Forecast

Slide 22: FYE3/2025 KPIs by Business (Forecast)

Slide 23: FYE3/2025 Dividend Forecast

Slide 24: Dividend Forecast

Slide 25: Progress of the Medium-Term Management Plan

Slide 26: Progress of the Medium-Term Management Plan

Slide 27: Appendix

Slide 28: Company Outline

Slide 29: Introduction of the Management Team

Slide 30: Company History

Slide 31: Business Outline

Slide 32: Corporate Philosophy

Slide 33: Dispatch Area: Construction Technician Dispatching

Slide 34: Business Characteristics: A subscription-type business with high growth potential

Slide 35: Construction Industry Trends

Slide 36: Construction Industry Trends

Slide 37: Branch Offices

Slide 38: Consolidated Financial Results

Slide 39: Disclaimer and Forward-Looking Statements