Copro-holdings Co., Ltd. · TSE:7059

Copro-holdings — Q3 FYE2023 Earnings Presentation

28 slides from Copro-holdings's earnings presentation, Feb 13, 2023

1. Slide 1: Financial Results for Third Quarter of FYE2023

   $0130)0-%*/(4$P -UE My name is Kiyokawa, and I am the president and CEO of COPRO-HOLDINGS. Co., Ltd. Now, I would like to explain our financial results for the third quarter of FYE2023 as announced on February 13, 2023.

2. Slide 2: Table of contents

   Table of contents: Today, I will explain the summary of the consolidated financial results for nine months, major initiatives in construction technician dispatching business, and alliance initiative in this order.

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4. Slide 4: Consolidated Financial Highlights for Nine Months of FYE2023

   • • － － Consolidated Financial Highlights for Nine Months of FYE2023: This is the summary of the consolidated financial results for nine months. First, regarding the highlights, net sales increased significantly, mainly in the core business of construction technician dispatching, as the number of re

5. Slide 5: Quarterly Consolidated Financial Results

   • Quarterly Consolidated Financial Results: Next, the quarterly consolidated financial results. Both sales and the number of technicians in the third quarter increased from the previous quarter. Both numbers reached a record high on a quarterly basis. Sales and the number of technicians for the thir

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7. Slide 7: KPIs of Construction Technician Dispatching Business(1)

   KPIs of Construction Technician Dispatching Business(1): Next is about the important KPI status described for our main initiatives in construction technician dispatching business. For our internal evaluation, “ ” indicates better-than- expected results, or results that were better than the previous

8. Slide 8: KPIs of Construction Technician Dispatching Business(2)

   KPIs of Construction Technician Dispatching Business(2): The mid-career hiring costs per technician (i.e., recruiting cost per person) was ¥406 thousand, an increase of 77.4% YoY. In our industry, recruitment has intensified and thus, we have proactively invested heavily in recruiting costs for the

9. Slide 9: KPIs of Construction Technician Dispatching Business(3)

   KPIs of Construction Technician Dispatching Business(3): The permanent employment ratio was 45.0%, a significant improvement of 24.3 points YoY. We will increase the permanent employment ratio so that dispatched technical employees will be able to work for long periods of time stably and securely wi

10. Slide 10: Net Sales and Number of Technicians

    • • Net Sales and Number of Technicians: Here are details about sales and the number of technicians. We boost our sales activities by enhancing the management of sales processes. These persistent activities achieved a significant increase in the number of sales projects involving our clients of 73.2

11. Slide 11: Expanding Mid-Career Recruitment

    •   Expanding Mid-Career Recruitment: We prioritized top-line growth by securing workforce in the current fiscal year and actively invested in mid-career hiring costs as an up-front investment. As a result, the number of mid-career hires over the last nine months significantly increased by 60.8% Y

12. Slide 12: Reducing Mid-Career Hiring Costs per Technician

    •   Reducing Mid-Career Hiring Costs per Technician: To reduce the unit cost of mid-career hires, which deteriorated in the first half of this fiscal year, we reinforced the process management and the system of recruiting activities. As a result, the unit cost improved to near the appropriate leve

13. Slide 13: Improving Retention Rate(1)

     Improving Retention Rate(1): Now, I will explain the improvement of the retention rate. We focus greatly on the retention rate among our KPIs. We consider the retention rate as technical employees’ evaluations to our company. There are three matters necessary for improving the retention rate. The

14. Slide 14: Improving Retention Rate(2)

     Improving Retention Rate(2): The third involves “promoting shifts to the permanent employment.” We do not believe that any technical employees should change their employment statues from fixed-term employment to permanent employment. However, we believe that shifts from fixed-term employments to p

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16. Slide 16: Forming a Business Alliance with SpiderPlus & Co.(1)

    Forming a Business Alliance with SpiderPlus & Co.(1): I would like to talk about progresses with initiatives for each alliance. The first initiative is a business alliance with SpiderPlus & Co., which is listed on the Tokyo Stock Exchange Growth Market. On November 14, 2022, we signed a business all

17. Slide 17: Forming a Business Alliance with SpiderPlus & Co.(2)

    Forming a Business Alliance with SpiderPlus & Co.(2): However, the on-site usage rate was 20%. This means that even after we dispatched personnel who had undertaken the SPIDERPLUS seminar, only 20% of 187 persons actually used SPIDERPLUS. We consider the figure of 20% of the on-site usage rate to be

18. Slide 18: Forming a Business Alliance with Blue innovation Co, Ltd.(1)

         Forming a Business Alliance with Blue innovation Co, Ltd.(1): The second initiative is a business alliance as of February 13, 2023 with Blue innovation Co, Ltd. We will improve productivity at construction sites by accelerating digital transformation application with Blue innovation Co, Lt

19. Slide 19: Forming a Business Alliance with Blue innovation Co, Ltd.(2)

    Forming a Business Alliance with Blue innovation Co, Ltd.(2): This is the company profile of Blue innovation. By expanding the use of their robots throughout the construction industry, the industry will drastically change in near future. By forming business alliances with companies that have superio

20. Slide 20: Forming Agreement with Nagoya Future Technical College

    • •     Forming Agreement with Nagoya Future Technical College: The third initiative was to sign an agreement with Nagoya Future Technical College. Our head office is located in Nagoya, Aichi. In our home area, there is Nagoya Future Technical College, which generates personnel familiar with fie

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22. Slide 22: Financial Forecast for FYE2023

    • • － － － － － － Financial Forecast for FYE2023: There have not been any revisions to the full-year forecast of FYE2023. The Appendix includes information on construction technician dispatching: number of technicians and utilization rate, the status of mechanical design and development technicians of

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26. Slide 26: *For the 4Q of FYE2022, due to the change in the month that the

    • • *For the 4Q of FYE2022, due to the change in the month that the FY ends, the results for the four months from December 2021 to March 2022 are included. *Retention rate (FY accumulative total): Among the technicians who were registered at the end of the previous fourth quarter, the percentage who

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