Copro-holdings Co., Ltd. · TSE:7059
Copro-holdings — H1 FY2020 Earnings Presentation
37 slides from Copro-holdings's earnings presentation, November 2020
Slide 1: Financial Results for the 1st Half, Fiscal Year Ending March 31, 2021
copro Fiscal Year Ending March 31, 2021 Financial Results for the 1st Half : COPRO-HOLDINGS. Co., Ltd. Tokyo Stock Exchange and Nagoya Stock Exchange - First Section (Stock Code: 7059)
Slide 2: Notice Concerning Change of Stock Market Listing
Notice Concerning Change of Stock Market Listing to First Section of Tokyo Stock Exchange (TSE) and Nagoya Stock Exchange (NSE) On September 11, 2020, the Company changed its market from TSE Mothers and NSE Centrex to First Section of TSE and NSE. NAGOYA STOCK EXCHANGE We would like to express our s
Slide 3: Contents
Contents copro. 1. Financial Highlights and Full-Year Forecasts. =—sssiséP«jws 3 2. Key Performance Indicators P.10 3. Breakdown of Sales P.14 4. Business Environment and Growth Strategy P.18 (Appendix) *CompanyOutline_ P.31 ¢ Stock Information. P.34 *Company History. P.32 ¢ StockPriceChart__ P.35 *
Slide 4: 1. Financial Highlights and Full-Year Forecasts
1. Financial Highlights and Full-Year Forecasts ©2020 COPRO-HOLDINGS. Co., Ltd.
Slide 5: Net Sales (Consolidated)
ee Net Sales (Consolidated) copro Go Beyond, GoTogether. Net sales achieved 17.8% year-on-year increase even under COVID-19 (millions of yen) T 9 271 +17.8% +21.6% FY2018 FY2019 FY2020 FY2020 1st Half 1st Half 1st Half 1st Half (Initial forecast) Note. The results for the 1st half of FY2018 are pres
Slide 6: Operating Profit (Consolidated)
Go Beyond, GoTogether. Operating Profit (Consolidated) copro (Year-on-year] * Operating profit maintained an upward trend excluding one-time costs for future growth {Versus initial forecast] " Operating profit exceeded the initial forecast due to lower SG&A expenses by the company-wide efforts to re
Slide 7: Breakdown of One-time Costs
a OOOOOOOOOOOO—O—O—O—O—O—E—eEerererererertrtrtrtrtrtrtrtrttttttststc( SLD Breakdown of One-time Costs copro Go Beyond, GoTogether. Factors for the increase in cost of sales @Increased recruitment of new graduates in April and strengthened training for them => Joined 89 employees, up 33 from the prev
Slide 8: Earnings Impact of COVID-19
Neen Earnings Impact of COVID-19 copro Go Beyond, GoTogether. = Minor impact on sales * The impact on sales is negligible, with the decline in overtime expenses due to telework and cessation from work * In the 1st quarter, some construction site was temporarily closed, and although some engineers we
Slide 9: Summary of Consolidated Financial Results
ee Summary of Consolidated Financial Results copro Go Beyond, GoTogether. (millions of yen) Versus eve ere eeuaiy Year-on-year Initial forecast Result (Initial forecast) Result (Amount) Net sales 7,237 7,271 +1,098 +17.8% +33 Cost of sales _ 5,255 +1,129 +27.4% _ Ratio to sales = 72.3% - +5.4pt Gros
Slide 10: FY2020 Full-Year Forecasts
OOOOH FY2020 Full-Year Forecasts copro Go Beyond, GoTogether. » Announced upward revisions to net sales and profits at each stage in response to the excess of the initial forecast for the 1st half (Revised on Oct. 28, 2020) (millions of yen) Versus FY2019 FY2020 FY2020 Year-on-year Initial forecast
Slide 11: 2. Key Performance Indicators
2. Key Performance Indicators ©2020 COPRO-HOLDINGS. Co., Ltd.
Slide 12: Retention Rate and Occupancy Rate
ee Retention Rate and Occupancy Rate copro Go Beyond, GoTogether. * Retention rate was 81.8%, a high level close to the medium-term target of 82% * Occupancy rate was 100% in real terms excluding leave, etc. 100% 98.0% 98.2% 98.1% 97.7% 95% ~ - _ 7 7 - : 90% 85% 85.396 36.300 81.8% 80% 83.2% 75% 70%
Slide 13: Number of Engineers Hired
Number of Engineers Hired copro Go Beyond, GoTogether. = The number of engineers hired in the 1st half was 462 * Continued recruitment without relaxing recruitment efforts under COVID-19 287 89 181 7 Facilities 41 Civil engineering Inexperienced in the industry 149 1Q_-2Q. 3Q_ 4Q_ 1Q_2Q_ 3Q_ 4Q FY20
Slide 14: Number of Engineers
ee Number of Engineers copro Go Beyond, GoTogether. = Successful recruitment activities to take advantage of COVID-19 as an opportunity led to a steady rise in engineers numbers (persons) 2,002 FY2016 FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 1st Half 1st Half 1st Half m Number of engineers at the e
Slide 15: Contract Amount per Person (Monthly)
a Contract Amount per Person (Monthly) ¢<epre Go Beyond, GoTogether. * Contract amount per person increased significantly year-on-year as a result of negotiations with clients for an increase in the amount for "Equal pay for equal work" enforced on April 1, 2020 by the law amendment Comparison of th
Slide 16: 3. Breakdown of Sales
3. Breakdown of Sales ©2020 COPRO-HOLDINGS. Co., Ltd.
Slide 17: Quarterly Sales Trends
ee Quarterly Sales Trends copro = Accompanying the growth in engineers counts, quarterly sales have increased on a cumulative basis (millions of yen) 3,664 1Q 2Q 3Q AQ 1Q 2Q 3Q AQ 1Q 2Q FY2018 FY2019 FY2020 ©2020 COPRO-HOLDINGS. Co., Ltd. fis |
Slide 18: Sales by Industry
Sales by Industry copro Go Beyond, GoTogether. = Sales were positive YoY in all industries, including plant area we focus on Construction +14.3% 1.962 2,243 FY2019 1st Half FY2020 1st Half CAD 1.8% | ~ FY2019 1st Half | FY2020 1st Half Civil engineering +24,9% 1,066 1,332 FY2019 1st Half FY2020 Ist
Slide 19: Sales by Business Partner and Area
ee Sales by Business Partner and Area copro Go Beyond, GoTogether. « Business with super general contractor, which has a large backlog of construction orders, expanded « Sales grew in both the three major metropolitan areas (Kanto, Tokai and Kansai regions) and local areas in a balanced manner. Sale
Slide 20: 4. Business Environment and Growth Strategy
4. Business Environment and Growth Strategy ©2020 COPRO-HOLDINGS. Co., Ltd.
Slide 21: Image of 10-year-growth from Now
Image of 10-year-growth from Now copro Go Beyond, GoTogether. (100 billion yen) 100 + Net sales 100 billion yen Operating profit 10 billion yen Plant engineer dispatch # Construction engineer dispatch 14th fiscal year FY2019 New fields Plant engineer dispatch Construction engineer dispatch 24th fisc
Slide 22: Business Environment that Supports Our Growth
OO —“—ERN'S””—Cs—“(‘“S$SHd NPS?’ Business Environment that Supports Our Growth @ copro Go Beyond, 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 agai
Slide 23: Source; Ministry of Internal Affairs and Communications, Labour Force Survey
Source; Ministry of Internal Affairs and Communications, Labour Force Survey
Slide 24: Policy for Business Rollout
Policy for Business Rollout ✓ ✓ ✓ 23
Slide 25: Organizational Restructuring Aimed at Strengthening Sales
a Organizational Restructuring Aimed at Strengthening Sales ¢ copro Go Beyond, GoTogether. " Separated the sales functions of dispatching construction engineers and dispatching plant engineers and establish four new departments with the aim of responding flexibly and nimbly to the market * The Trust
Slide 26: Expansion of Business Network
Expansion of Business Network copro Go Beyond, GoTogether. * Under the newly launched Plant Division, further expand the shares of plant engineer dispatch business « Working to capture the market in the Joshinetsu area by opening the Niigata branch « Improve productivity and quickly respond to custo
Slide 27: Increase Matching Rate
ee Increase Matching Rate copro Go Beyond, GoTogether. « By creating a database of job offers, we will build a system that enables the timely sharing of project information that had been identified only by personnel and branches across the company. * Improve matching rates by matching human resource
Slide 28: Improve Productivity by Revamping the Mission-critical System
a Improve Productivity by Revamping the Mission-critical System ¢ copro Go Beyond, GoTogether. * Promote systemization of back-office operations and reduce fixed costs at branches [Schedule for introduction) At present From April2020 June November January 2021 April 2021 Basic design Development and
Slide 29: Initiatives for Overseas Expansion
Initiatives for Overseas Expansion copro Go Beyond, GoTogether. « Established a subsidiary in Singapore in April 2020 as a hub base for expansion into ASEAN | Process 1 | Next Process 2 Established a subsidiary in Singapore Accepting overseas human resources = Established COPRO GLOBALS PTE. LTD. in
Slide 30: Shareholders' Returns
Shareholders’ Returns copro Go Beyond, GoTogether. * In anniversary of the market change to First Section of TSE and NSE, we will pay a commemorative dividend of ¥5 per share in addition to the 50-per-share ordinary dividend for the end of the period* * Aim to increase the dividend payout ratio, pay
Slide 31: [Appendix]
[Appendix] ©2020 COPRO-HOLDINGS. Co., Ltd.
Slide 32: Company Outline
e Company Outline Sos rose Company name | COPRO-HOLDINGS Co., Ltd. Representative | Kosuke Kiyokawa, CEO Kosuke Kiyokawa CEO 9 Dai Nagoya Building 27F , 3-28-12 Meieki, Head office Nakamura-ku, Nagoya, Aichi 450-6427 Foundation October, 2006 Fiscal year-end | March Stock listings First Section of th
Slide 33: 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 Loe Beye) Share listing * TSE Mothers = NSE Centrex ee Changed of company name Changed of stock market COPRO-ENGINEERD. Co., Ltd.
Slide 34: Company Philosophy
ee Company Philosophy copro Go Beyond, GoTogether. 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
Slide 35: Stock Information
Stock Information copro Go Beyond, GoTogether. * Distribution of the Shareholders « The Ten Largest Shareholders (As of September 30, 2020) (As of September 30, 2020) = Name of shareholders eholdings RITAMEKO. Co., Ltd. 44.5% 2 Kosuke Kiyokawa 12.8% Custody Bank of Japan, Ltd. (Trust 3 account) 11.9
Slide 36: Stock Price Chart
3/19 4/3 4/17 5/9 5/23 6/6 6/20 7/4 7/19 8/2 8/19 9/2 9/17 10/2 10/17 11/1 11/18 12/2 12/1612/30 1/20 2/3 2/18 3/4 3/18 4/2 4/16 5/1 5/20 6/3 6/17 7/1 7/15 7/31 8/17 8/31 9/14 9/30
Slide 37: Disclaimer and Forward-Looking Statements
ee Disclaimer and Forward-Looking Statements copro 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 is based on economic, social, and ot