Fiscal Year Ending March 31, 2023

Financial Resultsfor 1st Half
November 14, 2022

Tokyo Stock Exchange-Prime, Nagoya Stock
Exchange Premier (Ticker Symbol: 7059)

Table of Contents

1. Summary of the Consolidated Financial Results

2. Revision of Full-year Financial Forecast for FYE2023

3. Major Initiatives in Construction Technician Dispatching

4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

11. Summary of the Consolidated Financial Results

2. Revision of Full-year Financial Forecast for FYE2023

3. Major Initiatives in Construction Technician Dispatching

4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

2

Consolidated Financial Highlights for 1st Half of FYE2023• Both sales and profit exceeded the forecasts.
• Compared to the forecasts, in the construction technician dispatch business, the core business, the number oftechnicians in operation exceeded the forecast mainly due to the reduction in the number of retirements and thehiring of technicians generally proceeding as planned. Earnings at each stage exceeded forecasts by a large margin,
mainly due to higher-tha​n-expected​ net sales.
（million of yen）

FYE2022

FYE2023

YoY Change

Versus Forecast

Pct Change

Amount of
ChangePct Change

Amount of
Change100.0％+17.1％+1,268

+6.5％

+526

6,086

70.2％

+17.8％

+918

+7.5％

+424

2,482

2,583

29.8％

+15.7％

+349

+4.1％

+101

1,601

2,193

2,113

24.4％

+32.0％

+512

△3.6％

-79

Operating profit

632

289

469

5.4％

-25.7％-162+62.2％+180

Non-GAAP operating profit*

721

427

613

7.1％

-15.0％-108+43.6％+186

Ordinary profit

630

290

472

5.4％

-25.2％-158+62.7％+181

Profit attributable to owners of parent

328

158

280

3.2％

-14.6％-47+77.2％+122

Number of consolidated technicians &engineers (quarter end)*

2,086

2,538

2,574

－

+23.4%

+488

+1.4％

+36

1H Results

1H Forecast

1H Results

Net sales

7,402

8,144

8,670

Cost of sales

5,168

5,662

Gross profit

2,233

SG&A expenses

Ratio*To measure essential performance in profit, non-GAAP operating profit is calculated by adding depreciation costs, goodwill amortization and stock based compensation expenses back to operating profit.
*The number of consolidated technicians & engineers is the number of employees at the end of the fiscal year including IT freelancers in the SES business.

©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

3

Quarterly Consolidated Financial Results• Sales in the second quarter reached a record high as the number of engineers and technicians increased.

（million of yen）

（people）

4,500
4,038
4,000

3,796
3,606

3,500

2,044

3,664

2,002

3,768

2,020

4,421

2,394
2,203

3,000

2,574

3,846
3,555

2,054

4,148

4,249

2,500

2,201

2,086
1,957

2,000

3,000

2,500

1,500
1Q

2Q

3Q

4Q

1Q

FYE2021

2Q

3Q

4Q

FYE2022

1Q

2Q

FYE2023

Consolidated net sales

3,606

3,664

3,796

3,768

3,555

3,846

4,038

4,148

4,249

4,421

Number of consolidated
technicians & engineers(quarter end)

2,044

2,002

2,054

2,020

1,957

2,086

2,203

2,201

2,394

2,574

Consolidated net sales
Number of consolidated technicians & engineers (quarter end)

©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

4

1. Summary of the Consolidated Financial Results

2. Revision of Full-year Financial Forecast for FYE2023

3. Major Initiatives in Construction Technician Dispatching

4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

5

Revision of Full-year Financial Forecast for FYE2023• For the full fiscal year earnings forecast, while strong demand is expected from the 3Q onwards, in light of the impact
on securing human resources from the tightening of labor market conditions, and the economic impact from about
the resurgence of COVID-19, we have revised upward the portion exceeding the forecast for the first half, and left theinitial forecast for the second half unchanged.

• Aiming for the goal of achieving record net sales and profit in FYE2024 next year, we will prioritize top-line growth in
this fiscal year and continue upfront investment such as recruiting costs.
（million of yen）
FYE2022Full-year

FYE2023
Full-year

Full-year(initial forecast) (revised forecast)Versus Initial Forecast
Ratio

Pct Change

Amount of
ChangeYoY Change
Pct Change

Amount of
ChangeNet sales

15,58917,854

18,380100.0％

+2.9％

+526

+17.9％+2,791

Cost of sales

10,744

12,354

12,779

69.5％

+3.4％

+424

+18.9％+2,034Gross profit

4,844

5,500

5,601

30.5％

+1.8％

+101

+15.6％+756

SG&A expenses

3,223

4,476

4,397

23.9％

-1.8％

-79

+36.4％+1,173Operating profit

1,621

1,024

1,204

6.6％

+17.6％+180-25.7％-417

Non-GAAP operating profit*

1,841

1,334

1,521

8.3％

+13.9％+186-17.4％-320

Ordinary profit

1,619

1,024

1,206

6.6％

+17.8％+181-25.5％

-412

962

604

727

4.0％

+20.2％+122-24.5％-235

Earnings per share

102.12 yen

65.05 yen

78.29 yen－－

+13.24 yen－-23.83 yen

Dividends per share

40.0 yen

40.0 yen

40.0 yen

－

－

－

－

－

2,201

3,024

3,024

－

－

－

+37.4％+823

Profit attributable to owners ofparentNumber of consolidated technicians& engineers (quarter end)**To measure essential performance in profit, non-GAAP operating profit is calculated by adding depreciation costs, goodwill amortization and stock based compensation expenses back to operating profit.
*The number of consolidated technicians & engineers is the number of employees at the end of the fiscal year including IT freelancers in the SES business.

©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

6

1. Summary of the Consolidated Financial Results

2. Revision of Full-year Financial Forecast for FYE2023

3. Major Initiatives in Construction Technician Dispatching

4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

7

Major Initiatives in Construction Technician Dispatching (1): Expanding Recruitment
Hired Total of Mid-career Technicians

Main Initiatives for FYE2023 and Progress Evaluation⚫

FYE2022⚫

FYE2023→

160→
Third Quarter recruitment
made a good start

140

138

126

Raising the basic activity level through benchmark management andstandardization of the hiring process.
Appointing staff in charge of setting up interviews in order to secure humanresources in Tokyo, Nagoya and Osaka where construction demand is high, in
addition to increasing the number of people in charge of recruitment.
While the number of applications and hires has increased significantly, the drop in
the applicant-to-hire ratio is an issue.
Implementing operational reforms to improve the applicant-to-hire ratio in thesecond half.

1H Hiring Costs
per Technician

450 thousand yen

120⚫

Raising internal standards for recruiting costs perperson to secure excellent human resources→

Recruiting costs per person rose more than
expected due to the lower applicant-to-hire ratio⚫

Mid-career professional recruiting costs expected
to be 456 million yen for the full fiscal year,
about double YoY
As we prioritized securing human resources,
mid-career professional recruiting costs in thefirst half exceeded the internal budget due to therise in recruiting costs per person
In the second half, we will continue efforts to
expand hiring in line with the initial budget for
the fiscal year

（up 108.3％ YoY）
102
96

100

85

80

80

60

81
72

70

65

1H Mid-Career
Hiring Costs

63
53

248 million yen（up 201.0％ YoY）

57

56

→

→

△
×
×

40
⚫

In the full fiscal year plan, we are expecting tohire 1,417 mid-career professionals (up 639
people YoY)

552 people→

Recruitment numbers as of the first half weregenerally in line with plan. Successful points interms of human resources assurance.

（up 170 people andup 44.5% YoY）→

The number of recruits in October was 138, a
good start to Third Quarter toward achieving thefull-year target

1H Hired Total of
Mid-career Technicians

20

0
Apr.

May

June

Jul.

Aug.

©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

Sep.

Oct.

△
8

Major Initiatives in Construction Technician Dispatching (2): Improving the Retention Rate

Retention Rate
(fiscal year accumulative total)
100%

Main Initiatives for FYE2023 and Progress Evaluation

1H Target Company
Assignment Rate

87.8％

（up 3.5pts YoY）

⚫ Promoting assignments to target companies
with plenty of construction projects→ At the time of contract expiration, progress
is being made in preferentially changing todispatching to major companies such as
super general contractors

◎

90%

84.2%
80%

79.3%

1H Contract Renewal Ratio⚫ Controlling changes in the work
environment through long-term and stableassignment to the same company（up 4.7pts YoY）

→ The contract continuation rate is improving
as the ratio of assignments to target
companies is increased

83.0％+4.9pts

1H Permanent Employee
Ratio

50.0％

70%

（up 28.4pts YoY）

⚫ For those who meet the conditions,switching technicians from fixed-term
employment to indefinite-term employment→ Effective in improving the retention ratefrom the psychological sense of security. We
will steadily promote such switching in thesecond half as well.

◎
〇

60%
1H Turnover Totalof Technicians

381people

50%

FYE2022 1H

FYE2023 1H©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

（down 99 people YoY）

⚫ While giving impetus according to the yearof registering, enhancing the trust visits totechnicians→ Through detailed interviews, the number of
employees who resigned decreased despite
the increase in the overall number of active
employees◎
9Major Initiatives in Construction Technician Dispatching (3): Forming a Business
Alliance with SpiderPlus & Co.

Business Alliance
Formation on 14 th November, 2022

Dispatcher of Technicians to
the Construction Industry©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

Developer and Provider of theDigital Transformation Service“SPIDERPLUS”

10Major Initiatives in Construction Technician Dispatching (3): Forming a Business
Alliance with SpiderPlus & Co.

Human
Resources

Construction
DigitalTransformation

Next-generation Human Resources Servicing
Increase Market Value of Technicians

Improve Construction Site Productivity
through Digital Transformation

Supply high value-added technicians
who are capable of applying"SPIDERPLUS"

Accelerate the introduction of"SPIDERPLUS" by utilizing COPRO’s
customer base©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

11

Major Initiatives in Construction Technician Dispatching (3): Formeing a Business
Alliance with SpiderPlus & Co.

Overview of the Business Alliance(1)

Conduct training for technicians on "SPIDERPLUS“•

Incorporate training on "SPIDERPLUS" into the curriculum at the time of hiring and other, to develop humanresources who are able to immediately respond to digital transformation at actual construction sites.

•

Provide the education to more than 100 newly assigned technicians every month, creating over 1,000 technicians
per year who can utilize "SPIDERPLUS".

→ By differentiating ourselves from competitors by adding value to technicians, we expect to increase the number ofassignment technicians by offering new proposals to customers and contract amount.

(2) Introduce "SPIDERPLUS" to Our Clients•

To help introduce "SPIDERPLUS", we will introduce our destination company and construction site to SpiderPlus & Co.

→ We anticipate accelerating the pace of introduction of “SPIDERPLUS” at companies and construction sites that have
not yet introduced it.

Company Profile©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

Company

SpiderPlus & Co.

Headquarters

27F, Sumitomofudosan Toranomon Tower Bldg.
2-2-1 Toranomon Minato-ku
Tokyo 105-0001

CEO

Kenji Ito

Business

Developer and Provider of the Digital Transformation Service“SPIDERPLUS”

Stock listings

Tokyo Stock Exchange-Growth（Stock exchange code: 4192）

12

1. Summary of the Consolidated Financial Results

2. Revision of Full-year Financial Forecast for FYE2023

3. Major Initiatives in Construction Technician Dispatching

4. Appendix©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

13

Construction Technician Dispatching: Number of Technicians and Utilization Rate

• The number of technicians at the end of the 2Q was 2,344 (up 366 people YoY). In addition to a net increase due to a rise in thenumber of hires and a decrease in the number of those resigning, the worker dispatching business of Hucoss Co., Ltd. was takenover on April 1, 2022, and 122 technicians were transferred.
• The utilization rate for the cumulative first half was 96.7% (up 0.1 pts YoY), which was on par with the previous year.

（people）
2,500

100%
97.4%

2,400

97.0%

97.3%
96.7%

2,300

2,200

96.6%

97.1%
2,344

95.1%
1H average 2,221 people

93.7%

98%

95%

2,187
2,151

2,100

2,000

1H average 1,965 people

1,985
1,900

1,957

2,010
1,978

93%

90%

1,995

88%
1,800

1,700

85%
2021 Apr.

2021 June

2021 Sep.

2021 Dec.

Number of technicians©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

2022 Mar.

2022 Apr.

2022 June

2022 Sep.

Utilization rate

14

Construction Technician Dispatching: Recruitment, Turnover and Retention Rate
• The number of hires in the first half was 608 people (up 170 people and up 38.8% YoY). In addition to the significant increase in thenumber of applications due to the aggressive investment in hiring costs, we are strengthening our efforts such as shortening the leadtime from applications to interviews, to increase the number of interviews done. The number of hires for 2Q reached a record high on
a quarterly basis.
• The 2Q retention rate (this FY accumulative total) was 84.2%, an improvement of +4.9 pts YoY. The LTM retention rate for the mostrecent one year was 72.3%, an improvement of 0.5 pts from previous quarter.
The number of those resigning decreased due to the success of deep cultivation sales, and the increase in the ratio of assignments totarget companies such as major general contractors.

Recruitment and Turnover（people）
FYE2022
1Q

Hired total
New graduates and second new
graduates
Mid-career
Turnover total
Permanent employees
Fixed-term employees
Net change
Increase due to M&A, etc.
Number of technicians

2Q

1H

FYE2023
3Q

4Q

Full-year

1Q

Full-year(forecast)
608
1,501

2Q

1H

230

208

438

213

183

834

293

315

56

0

56

0

0

56

54

2

56

84

174
293
24
269
-63
0
1,957

208
187
25
162
+21
0
1,978

382
480
49
431
-42
0
1,978

213
181
21
160
+32
0
2,010

183
198
24
174
-15
0
1,995

778
859
94
765
-25
0
1,995

239
223
40
183
+70
+122
2,187

313
158
49
109
+157
0
2,344

552
381
89
292
+227
+122
2,344

1,417
885
＋616
+122
2,733

Retention Rate
FYE2022
1Q

2Q

FYE2023
3Q

4Q

1Q

2Q

Retention rate (FY accumulative total)

84.8％

79.3％

74.6％

69.4%

89.7％

84.2％

Retention rate (LTM)

68.0％

69.5％

69.2％

69.4%

71.8％

72.3％

*Retention rate (FY accumulative total): Among the technicians who were registered at the end of the previous fourth quarter, the percentage who were still registered at the end of the relevant quarter.
*Retention rate (LTM): Among the technicians who were registered at the end of the quarter one year ago, the percentage who were still registered at the end of the same quarter one year later.

©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

15

Mechanical Design and Development Engineer Dispatching and Contracting:Number of Engineers and Utilization Rate
• The number of hires has increased in line with the development of the in-house system that has been expanded since the previous
fiscal year. As a result, the number of engineers has steadily increased.
• The utilization rate for the cumulative first half was 96.9%. The rate decreased slightly YoY due to the impact of the in-housetraining period accompanying the strengthening of hiring of inexperienced workers.

（people）
140

99.1%

99.1%
98.1%

100%

98.3%
97.4%

135

96.7%

130

97.0%

98%

134

96%
94%

125

92%
120

122

90%
115
110

116

117

88%

111

86%
108

105

84%

106

100

82%

95

80%
2021 June

2021 Aug.

2021 Nov.

Number of engineers©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

2022 Mar.

2022 Apr.

2022 June

2022 Sep.

Utilization rate16

Mechanical Design and Development Engineer Dispatching and Contracting:
Recruitment, Turnover and Retention Rate
• In addition to inexperienced workers, the hiring of experienced workers, mainly expert engineers from manufacturers, continues togrow steadily.
• The retention rate remained stable at a high level.

Recruitment and Turnover（people）
FYE2022

FYE2023

2Q(June-Aug.)

3Q(Sep.-Nov.)

4Q*(Dec.-Mar.)

Hired total

1Q(Apr.-June)

Full-year

2Q(Jul.-Sep.)

Full-year(forecast)

1H

2

3

15

20

14

23

37

85

New graduated

0

0

0

0

1

０

1

1

Mid-career

2

3

15

20

13

23

36

84

Turnover total

5

5

5

15

8

11

19

23

5

4

3

12

7

7

14

-

Permanent employees
Fixed-term employees
Net change
Number of engineers

0

1

2

3

1

4

5

-

-3

-2

+10

+5

+6

+12

+18

+62

108

106

116

116

122

134

134

178

*For the 4Q of FYE2022, due to the change in the month that the fiscal year ends, the results for the four months from December 2021 to March 2022 are included.

Retention Rate
FYE2022
2Q(June-Aug.)

3Q(Sep.-Nov.)

FYE2023
4Q*(Dec.-Mar.)

1Q(Apr.-June)

2Q(Jul.-Sep.)

Retention rate (FY accumulative total)

95.4%

91.7%

88.9%

93.1%

89.7%

Retention rate (LTM)

92.7%

90.8%

88.9%

84.7%

85.2%

*Retention rate (FY accumulative total) = Among the technical employees who were registered at the end of the previous fourth quarter, the percentage who were still registered at the end of the relevant
quarter.
*Retention rate (LTM) = Among the technical employees who were registered at the end of the quarter one year ago, the percentage who were still registered at the end of the same quarter one year later.

*For the 4Q of FYE2022, due to the change in the month that the fiscal year ends, the results for the four months from December 2021 to March 2022 are included.

©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

17

SES: Number of Engineers Working and Number of New IT Freelance Registrants• The number of applications has increased. The number of people working has increased steadily as the sales process was graduallystrengthened.

Number of Engineers Working

Number of IT Freelance Registrants（people）（people）

100

450
96

Cumulative Number
of Registrants

Number of New Registrants

408

9,000
7,851

400

8,000

350

7,000

300

6,000

95
91

90

90
87

250
250

85

80

5,000

213

85
200

4,000

150

3,000

100
75

2,000

70

50
70

1,000

0
2021

2021

2022

2022

2022

FYE2022/3

FYE2022/3

FYE2023/3

FYE2023/3

Oct.

Dec.

Mar.

June

Sep.

3Q

4Q

1Q

2Q

©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

0
FYE2023/3 2Q

18

Disclaimer and Forward-Looking Statements◼ 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 other conditions
generally recognized as of the date of publication and on certain assumptions deemed reasonable
by Company. However, the information may be modified without notice due to changes in thebusiness environment or other factors.
◼ Materials and information provided in this document include so-called "forward-looking

statements”. These forward-looking statements are based on current expectations, forecasts andassumptions that involve risks and uncertainties that could cause actual results to differ materiallyfrom these statements.
◼ These risks and uncertainties include general industry, market conditions, general domestic andinternational economic conditions such as interest rate and currency exchange rate fluctuations.
◼ Company undertakes no obligation to update or revise any forward-looking statements containedin this document, whether as a result of new information or future events.

©2022 COPRO-HOLDINGS. Co., Ltd. All rights reserved.

19