Copro-holdings Co., Ltd. · TSE:7059
Copro-holdings — FY2020 Earnings Presentation
36 slides from Copro-holdings's earnings presentation, May 14, 2021
Slide 1: Financial Results for FY2020
Fiscal Year Ended March 31, 2021 Financial Results for FY2020 May 14, 2021 COPRO-HOLDINGS. Co., Ltd.
Slide 2: Contents
Contents 1. Financial Highlights 2. Key Performance Indicators 3. Breakdown of Sales 4. Forecasts and Major Initiatives for FY2021 5. Returning Shareholders 6. Appendix ©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 1
Slide 3: 1. Financial Highlights
1. Financial Highlights 2. Key Performance Indicators 3. Breakdown of Sales 4. Forecasts and Major Initiatives for FY2021 5. Returning Shareholders 6. Appendix ©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 2
Slide 4: Consolidated Financial Results
Consolidated Financial Results Net sales increased for 15 consecutive years due to an increase in the number of engineers. Phase income decreased mainly due to an increase in cost of sales ratio under the "equal pay for equal work" system. （millions of yen） Year-on-year FY2019 FY2020 (Amount) (%) Ne
Slide 5: Consolidated Operating Profit
Consolidated Operating Profit Consolidated Operating Profit Main Change Factors 1,437million yen ▪Net sales YOY △155 million yen, △9.7％ ✓ Increased by +13.1% YOY due to an increase in the number of engineers mainly due to the contribution from the opening of branches. （millions of yen） ▪Cost of sale
Slide 6: Quarterly Financial Results
Quarterly Financial Results Began strengthening charge-up negotiations in February 2021, positioning improving cost of sales ratio as a top priority. Promoting negotiations for gradual improvement from the first quarter of FY2021. （millions of yen） 1Q 2Q 3Q 4Q Previous Previous Previous Previous Res
Slide 7: 2. Key Performance Indicators
1. Financial Highlights 2. Key Performance Indicators 3. Breakdown of Sales 4. Forecasts and Major Initiatives for FY2021 5. Returning Shareholders 6. Appendix ©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 6
Slide 8: Retention Rate and Occupancy Rate
Retention Rate and Occupancy Rate While temporary staffing demand remained at a high level, the number of retired engineers due to contract expiration, who have joined the company for a period of about 1 to 2 years, increased due to a shift in demand from those with weak experience to those with exp
Slide 9: Number of Engineers Hired
Number of Engineers Hired The number of hires was in line with forecasts, and recruiting cost per engineer declined significantly due to restrained. Experienced and inexperienced in the industry (89 new graduates plus 343 mid-career employment) each account for 50%. Number of Engineers Breakdown of
Slide 10: Number of Engineers
Number of Engineers The number of engineers increased for 15 consecutive years even under the outbreak of COVID-19. Number of Engineers at End of FY2020 2,020 engineers YoY ＋36 engineers （engineers） 2,200 1,984 2,020 2,000 1,800 1,591 1,600 1,400 1,200 1,000 800 600 400 200 0 FY2006 FY2007 FY2008 FY
Slide 11: Contract Amount per Engineer by Years of Experience
Contract Amount per Engineer by Years of Experience (monthly amount) Due to a decline in the composition of engineers in the 1st year in line with the restraint in the number of engineers hired, the company-wide average contract amount increased compared to the previous fiscal year. Note; From this
Slide 12: 3. Breakdown of Sales
1. Financial Highlights 2. Key Performance Indicators 3. Breakdown of Sales 4. Forecasts and Major Initiatives for FY2021 5. Returning Shareholders 6. Appendix ©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 11
Slide 13: Quarterly Sales Trends
Quarterly Sales Trends In proportion to the number of engineers, quarterly sales have increased on a cumulative basis. Quarterly Sales 1Q 4Q 3,606 ➡ 3,768 （millions of yen） 2,044 2,054 4,000 2,002 2,020 2100 1,984 3,800 2000 1,879 3,600 1900 3,400 1,763 1800 1,686 3,200 1700 3,000 1,591 1,552 3,796
Slide 14: Sales by Industry
Sales by Industry Net sales increased in all industries. Civil engineering's net sales increased, driven by increased orders in rural areas, and plant's net sales also expanded as a result of progress in acquiring customers. （millions of yen） Construction Civil engineering Facilities Plant 4,496 mil
Slide 15: Sales by Business Partner and Area
Sales by Business Partner and Area In addition to Takamatsu Branch, which opened in October 2019, Shizuoka Branch, Niigata Branch, and Kitakyushu Plant Branch, which opened in 2020, contributed, net sales increased mainly in regional areas. Super General Contractor 3 Major Metropolitan Net Sales Are
Slide 16: 4. Forecasts and Major Initiatives for FY2021
1. Financial Highlights 2. Key Performance Indicators 3. Breakdown of Sales 4. Forecasts and Major Initiatives for FY2021 5. Returning Shareholders 6. Appendix ©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 15
Slide 17: FY2021 Forecasts
FY2021 Forecasts FY2021 is expected to return to a path of higher sales and profits due to an increase in net sales due to an increase in the number of engineers and a decrease in cost of sales ratio by charge-up negotiations. However, profits are expected to decrease in 1st Quarter and 1st Half due
Slide 18: Major KPIs Forecasts
Major KPIs Forecasts Cost of Sales Ratio 69.3％（YoY △1.7pt） ▪Continuing charge-up negotiations and aim to incremental cost of sales ratio to improve. Number of Engineers 2,440（YoY +420） ▪In addition to increasing recruitment, COPRO will improve retention rate by proposing matching using the new backb
Slide 19: New Core System
New Core System New Core System Started operation in April 2021 ▪Promote productivity improvement in branch office work and utilize the new core system for matching. Achieve optimal matching by matching project information accumulated in the Restrain growth in administrative Matching new core system
Slide 20: Global Business
Global Business Established COPRO VIETNAM CO., LTD. on Entry into Vietnam April 1, 2021 ▪Partnering with local educational institutions to recruit advanced foreign human resources who want to work in Japan. ▪Brokerage of human resources to Group company COPRO-ENGINEERED. Co., Ltd., and dispatching a
Slide 21: Acquired Shares of ATMOS
Acquired Shares of ATMOS COPRO acquired all shares on April 30, ATMOS CO., LTD. 2021, making it a wholly owned subsidiary ▪ATOMOS, which is engaged in the dispatch of machine design engineers, joined COPRO Group. Company Outline Business Details Company name ATMOS CO., LTD. Dispatching development a
Slide 22: Synergy Effect with ATOMOS
Synergy Effect with ATOMOS Aim to improve the stability and growth potential of the Group's overall revenues by diversifying its business in the engineer dispatch business area, and further accelerate growth in the machinery design engineer dispatch business by utilizing COPRO Group's management res
Slide 23: Statement to TSE Market Reorganization
Statement to TSE Market Reorganization Plan to select to move to the Prime Market Consider all kinds of corporate actions as options, aiming to meet the continued listing requirements ✓ While considering the balance between strategic ✓ Increase corporate value by expanding investments for growth and
Slide 24: 5. Returning Shareholders
1. Financial Highlights 2. Key Performance Indicators 3. Breakdown of Sales 4. Forecasts and Major Initiatives for FY2021 5. Returning Shareholders 6. Appendix ©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 23
Slide 25: Shareholder Return Policy
Shareholder Return Policy Maintain stable dividends with a target consolidated dividend payout ratio of 30% or more, while paying attention to the balance with investments that will contribute to future business expansion. FY2021(forecast) FY2021(forecast) Dividend Payout Ratio Dividends per Share 3
Slide 26: Stock Information
Stock Information Distribution of the Shareholders The Ten Largest Shareholders （As of March 31, 2021） （As of March 31, 2021） Shareholdings No. Name of shareholders (shares) (%) Other Japanese individuals, 1 RITAMEKO. Co., Ltd. 2,100,000 44.0% Japanese treasury shares and corporations others 2 Kosuk
Slide 27: 6. Appendix
1. Financial Highlights 2. Key Performance Indicators 3. Breakdown of Sales 4. Forecasts and Major Initiatives for FY2021 5. Returning Shareholders 6. Appendix ©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 26
Slide 28: Company Outline
Company Outline Company name COPRO-HOLDINGS Co., Ltd. Representative Kosuke Kiyokawa, CEO Kosuke Kiyokawa, CEO Dai Nagoya Building 27F , 3-28-12 Meieki, Head office Nakamura-ku, Nagoya, Aichi 450-6427 Foundation October, 2006 Fiscal year-end March First Section of the Tokyo Stock Exchange and the St
Slide 29: Company Philosophy
Company Philosophy ©2021 COPRO-HOLDINGS. Co., Ltd. All rights reserved. 28
Slide 30: Corporate History
Corporate History ▪Founded in Nagoya in 2006. ▪Shifted to a holding company structure capable of aggressively and flexibly promoting growth strategies in 2015. ▪Listed on the Mothers and the Centrex in March 2019, and changed to the 1st Section of the Tokyo Stock Exchange and the Nagoya Stock Exchan
Slide 31: Trends in Net Sales and Number of Engineers since Foundation
Trends in Net Sales and Number of Engineers since Foundation Aim to increase net sales for the sixteenth consecutive terms and record-high net sales for FY2021. （hundreds of millions of yen） （engineers） 2,440 200 2,400 Stock-type business, in which sales 180 2,200 2,020 163 accumulate in proportion
Slide 32: Business Model
Business Model Operates a dispatch business specializing in the engineer business area. COPRO-ENGINEERED operates a engineer dispatch business and recruitment business for construction companies and plant engineering companies. Atmos is engaged in the business of dispatching machine design engineers
Slide 33: Long-term Growth Image
Long-term Growth Image ✓ Step 4 M&A strategy and considering new businesses ✓ Step 3 Global business advancement ✓ Step 2 Increase market share for plant engineer dispatches ✓ Step 1 Further deepening in the construction engineers dispatch market FY2029(24th period) Results Image Step 4 Net sales JP
Slide 34: Business Environment Supporting Growth
Business Environment Supporting Growth The amount of construction investment has started to increase from 2011. After the Tokyo Olympic Games, due to large-scale projects such as the Japan’s Superconducting Maglev and the Osaka Expo, demand for redevelopment, infrastructure development, and national
Slide 35: Business Environment Supporting Growth
Business Environment Supporting Growth The construction industry is aging compared to the average for all industries, and there are fewer young workers. While 35.3% of workers will be forced to retire 10 years later, there is a shortage of young workers who is 11.6% of them and will play a leading r
Slide 36: 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