Nareru Group Inc. · TSE:9163
Nareru — FY2024 Earnings Presentation
19 slides from Nareru's earnings presentation, Dec 13, 2024
Slide 1: Fiscal Year Ended October 2024 Financial Results Briefing
Fiscal Year Ended October 2024 Financial Results Briefing Dec. 13, 2024 Nareru Group Inc. TSE Growth 9163 Note: This material has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the or
Slide 2: Executive Summary of Financial Results for FY2024.10
Executive Summary of Financial Results for FY2024.10 ⚫ Steady growth in enrollment numbers and contract unit prices led to significant increases in revenue and profits. ⚫ Operating profit and all other profit items exceeded the planned figures due to the reduction in selling and administrative expen
Slide 3: FY2024.10 Financial Results
1 FY2024.10 Financial Results Nareru Group Inc. ・ TSE Growth：9163 © Nareru Group Inc. 2
Slide 4: Financial Results for FY2024.10
Financial Results for FY2024.10 • In addition to an increase in the number of employed and active engineers, contract unit price increased due to ongoing price negotiations. • Revenue increased by +20.1% YoY, operating profit increased by +26.0% YoY, and net profit increased by +25.6% YoY. • Revenue
Slide 5: Comparison of Q4 FY2023 and Q4 FY2024
Comparison of Q4 FY2023 and Q4 FY2024 • Strong demand for construction workers led to an increase in the number of total engineers and contract unit price (revenue +876 million yen). • While there were improvements in working conditions for engineers and an increase in standby allowances, an improve
Slide 6: Trends in Quarterly Results
Trends in Quarterly Results • Quarterly revenues grew steadily and reached a new record high due to an increase in engineers. • Average quarterly revenue growth rate: +5.2% (FY22/10 1Q to FY24/10 4Q). • Quarterly gross profit and operating profit also reached record highs. Quarterly Revenue Quarterl
Slide 7: Results by Segment
Results by Segment • In order to meet customer demand, construction solutions is proactively investing in hiring expenses, strengthening sales activities, and promoting career support for engineers. • In the IT solutions, we will strengthen our sales activities to enhance training and win orders for
Slide 8: Consolidated Financial Position
Consolidated Financial Position • Net debt decreased by -1.1 billion yen due to the recording of net profit and repayment of borrowings. • As retained earnings increased, the ratio of goodwill also declined steadily. As of the end of As of the end of As of the end of As of the end of Millions of Yen
Slide 9: Consolidated Cash Flows
Consolidated Cash Flows • Cash flows from financing activities were -1.9 billion yen due to the previous term-end dividend (paid in January) and the current term interim dividend (paid in July). • Increase in cash and cash equivalents was +400 million yen. Millions of Yen FY2023.10 FY2024.10 Profit
Slide 10: Trends in major KPIs
2 FY2024.10 Trends in major KPIs Nareru Group Inc. ・ TSE Growth：9163 © Nareru Group Inc. 9
Slide 11: Trends in Engineers and Utilization Ratio (World Corporation)
Trends in Engineers and Utilization Ratio (World Corporation) • In addition to aggressive investment in hiring expenses, we worked to improve the recruitment process, resulting in an increase in the number of inexperienced engineers we hire. • The number of engineers increased by +543 YOY to 3,239,
Slide 12: Trend in Contract Unit Price (World Corporation)
Trend in Contract Unit Price (World Corporation) • The average contract unit price during the period was 510,000 yen, an increase of 23,000 yen from the previous period. Trends in Contract Unit Price YoY + 23,000 yen 510,000 yen 487,000 yen 510 511 512 504 498 491 484 475 475 470 469 467 Q1 Q2 Q3 Q4
Slide 13: Trends in New Hires, Job Leavers and Turnover (World Corporation)
Trends in New Hires, Job Leavers and Turnover (World Corporation) • Due to aggressive investment in hiring, the number of recruits in FY24.10 was 1,805 (+246 from FY23.10). • The turnover rate*1 for Q4 of FY24.10 improved by +1.1 pt from the same period last year to 29.1%. Trends by Quarter + 1.1pt
Slide 14: Trends in Engineers and Utilization Ratio (ATJC)
Trends in Engineers and Utilization Ratio (ATJC) • As the number of people on the waiting list increased, we strengthened sales activities to improve utilization ratio while limiting the number of people we hire (improving utilization ratio in Q4). • The number of engineers increased by +40 YOY to 4
Slide 15: Trends in Contract Unit Price (ATJC)
Trends in Contract Unit Price (ATJC) • The average contract unit price during the period was 514,000 yen, an increase of 15,000 yen from the previous period. Trends in Contract Unit Price YoY +15,000 yen 550 514,000 yen 531 524 522 520 499,000 yen 524 521 509 510 501 501 504 503 491 470 430 Q1 Q2 Q3
Slide 16: Trends in New Hires, Job Leavers and Turnover (ATJC)
Trends in New Hires, Job Leavers and Turnover (ATJC) • Due to the effect of reduced hiring activities, the number of new hires in FY24.10 was 151 (-35 from FY23.10). • The turnover rate*1 for Q4 of FY24.10 improved by +1.6 pt from the same period last year to 22.3%. Trends by Quarter Number of Peopl
Slide 17: Shareholder Returns
3 FY2024.10 Shareholder Returns Nareru Group Inc. ・ TSE Growth：9163 © Nareru Group Inc. 16
Slide 18: Shareholder Returns
Shareholder Returns • Year-end dividend dividend for FY24.10 will be 60.00 yen as originally planned. • Combined with the interim dividend of 50.00 yen, the annual dividend will be 110.00 yen (+15.00 yen YoY) • Dividend payout ratio based on basic earnings per share is 43.1% Yen Interim dividend Yea
Slide 19: Disclaimer
Disclaimer This material has been prepared by Nareru Group Inc. (the “Company”) solely for information purpose only. This material does not constitute a solicitation of an offer to buy or sell securities in the United States, Japan, or any other jurisdiction. The information on companies other than