November 5, 2021 | |
Company name: | UT Group Co., Ltd. |
Representative: | Yoichi Wakayama, President, |
Representative Director & CEO | |
(Securities code: | 2146, TSE First Section) |
For inquiries: | Takahito Yamada, Senior Executive |
Officer and Division Manager, | |
General Affairs Division | |
TEL: | +81-3-5447-1710 |
Notice of Revision of Consolidated Results Forecast
UT Group announces that its Board of Directors held a meeting on November 5, 2021 and, given the recent performance, revised the consolidated results forecast for the Fiscal Year Ending March 31, 2022, which was initially disclosed on May 10, 2021, as follows.
1. FY 3/2022: Revision of full-year consolidated results forecast (April 1, 2021 - March 31, 2022)
Profit | ||||||||||||||
Net sales | Operating | Ordinary | attributable to | Net profit | ||||||||||
profit | profit | owners of | per share | |||||||||||
the parent | ||||||||||||||
Previous forecast | Million yen | Million yen | Million yen | Million yen | Yen | |||||||||
(A) | 150,000 | 8,000 | 8,000 | 4,800 | 118.92 | |||||||||
Revised forecast | 160,000 | 6,000 | 6,000 | 3,400 | 84.24 | |||||||||
(B) | ||||||||||||||
Increase/decrease | 10,000 | -2,000 | -2,000 | -1,400 | -34.68 | |||||||||
(B－A) | ||||||||||||||
Change (%) | 6.7 | -25.0 | -25.0 | -29.2 | － | |||||||||
(Reference) | ||||||||||||||
Results for the | ||||||||||||||
previous fiscal | 115,131 | 7,163 | 7,191 | 4,299 | 106.53 | |||||||||
year (ended March | ||||||||||||||
2021) | ||||||||||||||
2. Reason for the revision
Since the personnel orders in the second half of the current fiscal year are expected to be steadier than initially forecasted, UT Group has decided to continue aggressive hiring activities with hiring-related
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expenses and strive to maximize the number of technical employees at the end of the current fiscal year. Under this policy, we revised the consolidated results forecast for the FY3/2022.
We have set the EBTIDA targets of 20-30 billion yen for the FY3/2025 - the final year of the Fourth Medium-term Business Plan announced in May 2020. In order to achieve this, we aim to achieve 15 billion yen in EBITDA in FY3/2023, one year ahead of the initially-planned FY3/2024. This has led us to focus on increasing our technical employees and expanding our share and sales in the current FY3/2022, as our most important issue.
Under this policy, we have strengthened hiring activities to accelerate sales growth, which resulted in hiring 9,065 people in domestic operation in the first six months of the current fiscal year. The number of technical employees reached 28,720 (increase of 7,735 from 20,985, a year ago). Consolidated net sales, including overseas operations, were 72,578 million yen (up 36.8% year-on-year from 53,045 million yen). In the second half of the current fiscal year, personnel demand is expected to expand further as semiconductor manufacturing equipment manufacturers and semiconductor manufacturers are looking to rapidly increase their production capacity. Furthermore, the production adjustments that occurred mainly in September-October 2021 in the major automobile manufacturers seems to be temporally and we currently have a very large backlog. Considering that this demand will remain strong in the second half, we have decided to continue aggressive hiring activities with hiring-related expenses to capture the opportunity of demand expansion firmly. We will endeavor to hire more than first half to reach 34,000 of technical employees at the end of the current fiscal year.
In addition to the raised top line from the beginning of the year with the number of technical employees maximized at the end of FY3/2022 as a starting point, we will improve SG&A expenses-efficiency through reorganization of subsidiaries aimed at productivity improvement. By taking these measures we aim to achieve EBITDA of 15 billion yen in the FY3/2023 and raising the possibility of achieving EBITDA of 30 billion yen in the FY3/2025.
In light of the above, we have revised upward net sales forecast for the FY3/2022 and, with an increase of costs such as hiring expenses on enhanced hiring activities, downward forecasts in operating profit, ordinary profit, profit attributable to owners of the parent, and net profit per share.
- The consolidated results forecast in this release is prepared based on the information available at the present time, and the actual results may change in the future due to a variety of factors.
End
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