Copro-holdings Co., Ltd. · TSE:7059
Copro-holdings — Q3 FY2020 Earnings Presentation
37 slides from Copro-holdings's earnings presentation, February 2021
Slide 1: Financial Results for Nine Months, Fiscal Year Ending March 31, 2021
copro Fiscal Year Ending March 31, 2021 Financial Results -— for Nine Months COPRO-HOLDINGS. Co., Ltd. Tokyo Stock Exchange and Nagoya Stock Exchange - First Section (Stock Code: 7059) ©2021 COPRO-HOLDINGS. Co., Ltd.
Slide 2: Contents
copro C e) n te n ts cop! GoTogether. Summary P. 2 1. Financial Highlights and Full-Year Forecasts_ P. 3 2. Key Performance Indicators P. 8 3. Breakdown of Sales P.13 4. Business Environment and Growth Strategy P.17 5. Returning Shareholders P.21 (Appendix) *CompanyOutline_ P.27 * Business Model P.3
Slide 3: Summary
i Summary copro Go Beyond, GoTogether. Topic 1. Business Report for Nine Months of Fiscal Year Ending March 31, 2021 = Net sales increased by double digits +15.9% year-on-year. The number of engineers was 2,054, up by 70 people from the end of the previous term. = Cost of sales ratio rose 4.9 percen
Slide 4: 1. Financial Highlights and Full-Year Forecasts
1. Financial Highlights and Full-Year Forecasts ©2021 COPRO-HOLDINGS. Co., Ltd.
Slide 5: Net Sales (Consolidated)
es Net Sales (Consolidated) a = Due to an increase in engineers numbers, net sales increased by double digits +15.9% year-on-year. (millions of yen) 12,000 10,000 8,000 +15.9% +20.9% 6,000 4,000 2,000 0 FY2018 FY2019 FY2020 Nine months Nine months Nine months Note. The results for nine months of FY2
Slide 6: Operating Profit (Consolidated)
Go Beyond, GoTogether. Operating Profit (Consolidated) copro « Cost of sales ratio rose 4.9 percentage points year on year to 71.5%. The main factor was engineers salary increase under “Equal pay for equal work” system. In addition, smartphone rentals to all engineers and payments for special holida
Slide 7: Summary of Consolidated Financial Results
a Summary of Consolidated Financial Results <¢opro Go Beyond, GoTogether. (millions of yen) _FY¥2019 _F¥2020 Year-on-year Nine months Nine months Result Results (Amount) 2) Net sales 11,068 +1,519 +15.9% Cost of sales 7,915 +1,551 +24.4% Ratio to sales 71.5% _ +4.9pt Gross profit 3,152 A32 A1.0% Rat
Slide 8: Revision of FY2020 Full-Year Forecasts
a Revision of FY2020 Full-Year Forecasts copro Go Beyond, GoTogether. <Reasons for revision> In COVID-19, there has been a delay in charge-up negotiations on the rise in the cost of sales under “Equal pay for equal work” system, and the pace of cost of sales ratio improvements has been lower than ex
Slide 9: 2. Key Performance Indicators
2. Key Performance Indicators ©2021 COPRO-HOLDINGS. Co., Ltd. fe |
Slide 10: Retention Rate and Occupancy Rate
i Retention Rate and Occupancy Rate copro Go Beyond, GoTogether. = Retention rate for 2Q-3Q period improved 1.8 percentage points from 1Q-2Q period to 83.6%. * Occupancy rate remains high at 100% in real terms, except for leaves of absence, etc. 100% 98.2% 98.2% 98.1% 97.7% 97.8% 95% _ _ 90% 86.1% 8
Slide 11: Number of Engineers Hired
Number of Engineers Hired copro Go Bevond, GoTogether. = The number of employees hired up to 3Q exceeds the planned number. (Implemented recruitment activities emphasizing the quality of human resources, with annual recruitment expected to be negative YoY) = Based on the above policy, the strategic
Slide 12: Number of Engineers
eS Number of Engineers copro Go Bevond, GoTogether. = Continued hiring in COVID-19 has kept engineers numbers on an increase trend. (engineers) 2,054 FY2016 FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 1st Half 1st Half 3Q m Number of engineers at the ende of the quarter ©2021 COPRO-HOLDINGS. Co., Ltd.
Slide 13: Contract Amount per Engineer by Length of Service
a —“CtirsSCSC“(‘(RNNWSU‘NN Contract Amount per Engineer by Length of Service (monthly) © copro Go Beyond, GoTogether. " The Company-wide average contract amount per engineer declined both year-over-year and quarter-over-quarter due to an increase in the proportion of engineers with short service yea
Slide 14: 3. Breakdown of Sales
3. Breakdown of Sales ©2021 COPRO-HOLDINGS. Co., Ltd.
Slide 15: Quarterly Sales Trends
a Quarterly Sales Trends copro Go Bevond, GoTogether. = Accompanying the growth in engineers counts, quarterly sales have increased on a cumulative basis. (millions of yen) 3,196 1Q 2Q 3Q AQ 1Q 2Q 3Q AQ 1Q 2Q 3Q FY2018 FY2019 FY2020 ©2021 COPRO-HOLDINGS. Co., Ltd. fia |
Slide 16: Sales by Industry
Sales by Industry copro Go Beyond, GoTogether. = Sales were positive YoY in all industries, including plant area we focus on. (millions of yen) Construction Civil engineering Facilities Plant 0, 0, 11.7% +2216% 18.0% roa 3,043 3,399 1.661 2,037 2351 2,775 1.378 1,648 FY2019 FY2020 FY2019 FY2020 FY20
Slide 17: Sales by Business Partner and Area
ee Sales by Business Partner and Area copro Go Beyond, GoTogether. = Net sales increased, mainly at construction companies in local areas, due to the expansion of sales areas through the opening of branches. Sales by business partner (millions of yen) 11,068 +18.3% +7.3% FY2019 FY2020 Nine months. N
Slide 18: 4. Follow-up on the Growth Strategy
4. Follow-up on the Growth Strategy
Slide 19: Sales Reform
Sales Reform COPrO = Promoting some sales reform projects with the aim of shifting from personal sales style to organizational sales style. + New matching system has been established, and it has been established to centrally manage customer information and project information that had been managed b
Slide 20: Upgrading the core system
a Upgrading the core system copro Go Bevond, GoTogether. « Promoting reforms to the core system to improve the productivity of back-office operations at branches. Progress made on schedule toward full operation in April 2021. " Forecast of approximately 40% reduction in labor costs for salaries, inv
Slide 21: Global Business
rc crc t;wLLCUG Global Business copro Go Bevond, GoTogether. " Decided to establish an operating subsidiary in Vietnam in April 2021. tablishment of overseas bases Accepting overseas human resources = COPRO GLOBALS PTE, an intermediate holding company, was established in April 2020 as a hub base in
Slide 22: 5. Returning Shareholders
5. Returning Shareholders ©2021 COPRO-HOLDINGS. Co., Ltd.
Slide 23: Share Split
Share Split copro Go Bevond, GoTogether. = A 2-for-1 share split will be conducted on April 1, 2021, targeting the common shares held by shareholders on March 31, 2021, with the aim of creating an environment in which investors can invest more easily by lowering the trading price of our shares, expa
Slide 24: Shareholder Return Policy
Shareholder Return Policy CORIO nr " The basic policy is to maintain stable dividends with a consolidated dividend payout ratio of 30% as our immediate target, while paying attention to the balance with investments that will contribute to future business expansion. {Dividend forecast for the year en
Slide 25: Dividends per Share and Dividend Payout Ratio
Dividends per Share and Dividend Payout Ratio <copro Go Beyond, GoTogether. The per-share dividend has been retroactively revised, taking into account the impact of the 1-to-2 share split. + Date of record; March 31, 2021 / Effective date; April 1, 2021 / Split ratio; 1to2 (FA) (%) 70 3% 40 60 35 80
Slide 26: Stock Price Chart
ee esti“ te.LLCUrLm Stock Price Chart copro Go Bevond, GoTogether. (Based on the closing stock price of January 29, 2021) Stock price ¥3,560 I en ¥356,000 ceeniietieiten ¥17.8bn Tradinglot FRIES | dividend yield PER* *PER uses net income per share forecast for FY2020 ending March 31, 2021 as announc
Slide 27: [Appendix]
[Appendix] ©2021 COPRO-HOLDINGS. Co., Ltd.
Slide 28: Company Outline
a Company Outline copro Go Bevond, GoTogether. Company name Representative Head office Foundation Fiscal year-end Stock listings Security code Description of business Consolidated subsidiaries Number of employees Number of branches COPRO-HOLDINGS Co., Ltd. Kosuke Kiyokawa, CEO Dai Nagoya Building 27
Slide 29: Company History
Company History copro Go Beyond, GoTogether. Relocation of head office Company start-up Nakamura-ku, Nagoya (Dai Nagoya Building ) Trustee Crew Co., Ltd. (Naka-ku, Nagoya) - ye munky Share listing \VElem " TSE Mothers = NSE Centrex ee Changed of company name COPRO-ENGINEERD. Co., Ltd. A) Changed of
Slide 30: Trends in Sales and Engineers since Start-up
i Trends in Sales and Engineers since Start-up copro Go Bevond, GoTogether. « The number of engineers has increased every fiscal year since the Company’s start-up, achieved an increase in sales for the 14th consecutive fiscal year. « For the fiscal year ending March 2021, we expect record sales. (en
Slide 31: Company Philosophy
a Company Philosophy a Creating a dynamic MISSION “human-driven” society Becoming a VISION “human resource development” company that ignites people’s hearts Working with a sense of purpose. VALUE Committing to goals and working together with pride to achieve them. Growing with all employees through
Slide 32: Business Model
rc crc t;wLLCUG Business Model copro « Temporary staffing for engineers mainly in the construction industry. = The Company dispatches engineers to client companies. The engineers’ principal work tasks include construction work management. Business model Description of dispatch work * Temporary staff
Slide 33: 4 Pillars of Dispatching Businesses
4 Pillars of Dispatching Businesses copro Go Beyond, GoTogether. « In order to identify and nurture human resources, dispatch them to the construction industry as a high-value-added human resources and build a Win-Win-Win relationship between clients, engineers, and COPRO, pursue "recruitment, train
Slide 34: Image of 10-year Growth from Now
ee Image of 10-year-growth from Now copro Go Beyond, GoTogether. M&A strategy and considering new businesses v¥ Step3 Global business advancement Increase market share for plant engineer dispatches ¥ Step1 Further deepening in the construction engineers dispatch market FY2029(24th period) FY2029 res
Slide 35: Business Environment that Supports Our Growth
i Business Environment that Supports OurGrowth@ copro Go Bevond, GoTogether. « The amount of investment in construction has remained robust after the Tokyo Olympic demand, due in part to the need for redevelopment, infrastructure development, and countermeasures against natural disasters. On the oth
Slide 36: Source: Ministry of Internal Affairs and Communications, Labour Force Survey
Source; Ministry of Internal Affairs and Communications, Labour Force Survey
Slide 37: Disclaimer and Forward-Looking Statements
i eeeeerere—“(t‘(SCtsC(C(‘(CS..C#éSSS Disclaimer and Forward-Looking Statements <¢oPro Go Beyond, GoTogether. 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