・当社イメージキャラクター：お笑いコンビ 宮下草薙・当社マスコット：コプ郎

Fiscal Year Ending March 31, 2024
Financial Results for 1st Quarter
August 10, 2023

$0130)0-%*/(4$P -UE
Tokyo Stock Exchange‐Prime, Nagoya Stock
Exchange Premier (Ticker Symbol: 7059)

0

SECTION

01

Summary of the Consolidated Financial Results for FYE2023

02

Analysis of KPIs

03

Business Summary04

FYE2024 Earnings Forecast

05

FYE2024 Dividend Forecast©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

1

Welcome to all of our shareholders and investors. I am Mr. Kiyokawa, the president andchief executive officer. I will now begin the explanation for the financial results in the firstquarter of FYE2024.

1

SECTION 01
Summary of theConsolidated Financial
Results for 1st Quarter©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

2

2

Highlights of the Consolidated Financial Results for 1st Quarter
Number of Consolidated
Technicians and Engineers

3,314people(YoY+38.3％)

Operating Profit

Net sales

236million yen

5,406million yen
RecordHigh

27.2％)(YoY+(YoY+2.5％)

RecordHigh

Non‐GAAP Operating Profit

Ordinary Profit

Profit attributable to ownersof parent

288million yen

308million yen

191million yen(YoY‐4.0％)(YoY+33.6％)(YoY+41.6％)

Point 1

The number of technicians and engineers reached a record high of 3,314 (up 918 YoY).

Point 2

By controlling SG&A expenses, profit at every stage (excluding Non‐GAAP operating profit) changed from thecompany's internal forecast of lower profit and secure an increase in profit from the previous 1Q.

Point 3

Ordinary profit and Profit attributable to owners of parent increased significantly due to the recording of non‐operating
income by surrender value of insurance policies.

* 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.

©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

3

This is a summary of the financial results for the first quarter. As highlights of theconsolidated financial results, the number of consolidated technical employees
increased by 38.3% YoY to 3,314 people, and sales increased by 27.2% YoY to 5,406
million yen, both of which are record highs. Operating profit increased 2.5% YoY to 236
million yen.
Non-GAAP operating profit was 288 million yen, down 4% YoY. Ordinary profit increased
33.6% YoY to 308 million yen, and net profit increased 41.6% YoY to 191 million yen.
There are three points at the bottom of the slide. First, the number of consolidated
technical employees reached a record high of 3,314 people, an increase of 918 YoY.
Second, by controlling selling and administration expenses, each type of profit (excluding
non-GAAP operating profit) turned around from the internal plan of decreasing profits
and we secured an increase in profits.
Third, ordinary profit and net profit increased significantly due to the recording of nonoperating profit from insurance surrender value.

3

Consolidated Financial Results for 1st Quarter（million of yen）

FYE2023
1Q results

FYE2024Ratio

1Q results

YoY Change

Ratio

FYE2024

Pct Change

Amount of
Change1H Forecast

Progress Rate

Net sales

4,249

100.0％

5,406

100.0％+27.2％+1,157

11,203

48.3％

Cost of sales

2,972

70.0％

3,964

73.3％

+33.4％

+991

8,040

49.3％

Gross profit

1,276

30.0％

1,441

26.7％

+13.0％

+165

3,162

45.6％
45.2％

SG&A expenses

1,045

24.6％

1,205

22.3％

+15.3％

+159

2,667

Operating profit

230

5.4％

236

4.4％

+2.5％

+5

495

47.7％

Non‐GAAP operating profit*

300

7.1％

288

5.3％

‐4.0％

‐12

660

43.6％

Ordinary profit

230

5.4％

308

5.7％

+33.6％

+77

565

54.6％

Profit attributable to owners of parent

135

3.2％

191

3.5％

+41.6％

+56

316

60.4％

Number of consolidated technicians &engineers (quarter end)*

2,396

－

3,314

－

+38.3%+918－－*As a profit index to measure essential performance, non‐GAAP operating profit is calculated by adding depreciation costs, goodwill amortization and stock award 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.

©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

4

Now that I have explained the main points of the consolidated financial results, I will
explain the results in order. The left side of the table on the slide is the first quarter of
FYE2023, and the right side is the first quarter of FYE2024.
Sales were 5,406 million yen, up 27.2% YoY, with a progress rate of 48.3%, andoperating profit was 236 million yen, up 2.5% YoY, with a progress rate of 47.7%.
Quarterly net profit attributable to parent company shareholders was 191 million yen, up
41.6% YoY, and the progress rate was 60.4%.

4

Quarterly Consolidated Financial Results• First Quarter net sales and technician numbers both increased from the previous quarter.
• Record high on a quarterly basis.
*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.

5,500

5,206
4,914

5,000
4,500
4,000
3,500

3,846
3,555
1,957

2,086

4,038
2,203

4,148

2,201

4,421

4,249

5,406

4,000

3,314

3,500

3,036
2,826

3,000

2,575

2,386

2,500
2,000

3,000

1,500

2,500
1Q

2Q

3Q

4Q

1Q

2Q

FYE2022
Consolidated net sales(million of yen)
QoQ change
No. of consolidated
technicians (quarter end)
QoQ change

3Q

4Q

FYE2023

1Q
FYE2024

3,555

3,846

4,038

4,148

4,249

4,421

4,914

5,206

5,406

‐5.7％

+8.2％

+5.0％

+2.7％

+2.4％

+4.0％

+11.2％

+5.9％

+3.8％

1,957

2,086

2,203

2,201

2,396

2,575

2,826

3,036

3,314

‐3.1％

+6.6％

+5.6％

‐0.1％

+8.9％

+7.5％

+9.8％

+7.4％

+9.2％

Consolidated
連結売上高
net sales

Number of consolidated
連結技術者数(期末)
technicians©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

5

The quarterly consolidated results are shown in bar graphs. Both sales and the numberof technical employees in the first quarter increased from the previous quarter. And, on aquarterly basis, we have reached new record highs.

5

1st Quarter Financial Results by Subsidiaries• Cost of sales ratio of COPRO‐ENGINEERD deteriorated due to standby labor cost during internal training as the number of new graduate
technicians increased. Operating profit fell by ¥76 million year‐on‐year, mainly due to higher SG&A expenses resulting from higher
recruitment agency fees and personnel expenses.
• Gross profit increased in ATMOS due to significant growth in net sales and improved cost of sales ratio. Contributing to the decline in the
SG&A‐to‐sales ratio, First Quarter achieved an operating profit, and operating profit increased by ¥25 million year on year.
• VALUE ARK CONSULTING posted an operating profit decline of 12 million yen YoY due to an upfront expense stemming from theaggressive launch of advertising expenses.
• COPRO‐HOLDINGS contributed 69 million yen more than the previous fiscal year, reflecting a decrease in personnel expenses due to thestreamlining of the head office and a decline in share‐based remuneration expenses.

FYE2023
1Q results
Net sales

FYE2024

YoY

Pct Change

Amount of Change

1Q（million of yen）
YoY

Pct Change

Amount of Change

4,249+19.5%

+693

5,406

+27.2%+1,1573,996+12.4%

+441

5,010

+25.4%+1,013

ATMOS

207

‐

+207

313

+51.3%+106

VALUE ARK CONSULTING

44

‐

+44

81

+81.7%+36

1,276+20.0%

+212

1,441

+13.0%

+165

1,197

+12.6％+133

COPRO‐ENGINEERD

Gross profit

1,315

+9.8%

+117

ATMOS

36

‐

+36

78

+117.0%+42

VALUE ARK CONSULTING

COPRO‐ENGINEERD

42

‐

+42

47

+12.1%+5

1,045+33.0%

+259

1,205

+15.3%+159

621+29.7％+142816+31.3%+194

SG&A expenses
COPRO‐ENGINEERD
ATMOS

59

‐

+59

76

+28.5%+16

VALUE ARK CONSULTING

41

‐

+41

59

+42.7%+17‐69

COPRO‐HODINGS and others

322

+5.2％

+15

253

‐21.6%

230‐17.0%

‐47

236

+2.5%

COPRO‐ENGINEERD

575

‐1.5％

‐8

498

‐13.4%

‐76

ATMOS

‐23

‐

‐23

2

‐110.3%+25

Operating profit

VALUE ARK CONSULTING
COPRO‐HODINGS and others

+5

0

‐

+0

‐11

－

‐12

‐322

+5.2％

‐15

‐253

‐21.6%+69* Figures for subsidiaries are adjusted for consolidation after eliminating intra‐group transactions.
©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

6

These are the results by subsidiary for the first quarter. From the first quarter of
FYE2024, COPRO-ENGINEERD in the construction segment, ATMOS in the mechanicaland electrical segment and VALUE ARK CONSULTING in the IT segment are eachshown in the table.
COPRO-ENGINEERD’s cost of sales ratio is worsening due to standby labor costs
during in-house training as the number of new graduate technicians increases. In
addition, due mainly to an increase in selling and administration expenses because of anincrease in recruiting and personnel costs, operating profit decreased by 76 million yen
YoY.
Gross profit margin increased at ATMOS due to a significant increase in sales and an
improvement in the cost of sales ratio. A decline in the selling and administration
expense ratio also contributed, and they posted an operating profit in the first quarter,
increasing operating profit by 25 million yen YoY.
VALUE ARK CONSULTING posted an operating profit decrease of 12 million yen YoY
due to upfront costs associated with aggressive spending on advertising.
COPRO-HOLDINGS, the parent company, had an increase in profit of 69 million yen
YoY due to a decrease in personnel expenses because of streamlining at the head office
and a decrease in stock award expenses.

6

SECTION 02

Analysis of KPIs

©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

7

7

KPIs by Subsidiaries• Due to an increase in recruitment numbers centered on the mainstay COPRO‐ENGINEERD, the number of technicians employed rose 38.3%
YoY to 3314, with an increase of 918.
• Retention rate declined 1.0pts YoY to 89.6%. Due to some mismatches in assignment due to the increased hiring of both COPRO‐ENGINEERD and ATMOS, and lack of follow‐up after assignment.
(people, thousands of yen)

FYE2023
1Q
Total Recruited

2Q

3Q

FYE2024
4Q

Full‐year

1Q

FYE2024
YoY

Full‐year(forecast)

443

360

459

485

1,747

664

+49.9%+221

COPRO‐ENGINEERD

293

315

417

447

1,472

614

+109.6%

+321

2,120

ATMOS

14

23

25

23

85

29

+107.1%+15

123

VALUE ARK CONSULTING

14

22

17

15

68

21

+50.0%+7

Increase due to M&A, etc.

122

0

0

0

122

0

‐

‐122

‐

248

181

208

275

912

386

+55.6％

+138

1,096
1,008

Turnover total

2,331

88

223

158

191

240

812

361

+61.9%

+138

ATMOS

8

11

11

12

42

13

+62.5%+5

VALUE ARK CONSULTING

17

12

6

23

58

12

‐29.4％

‐5

58

2,396

2,575

2,826

3,036

3,036

3,314

+38.3%

+918

4,271

2,570

2,777

2,777

3,030

+38.5%

+843

3,889

COPRO‐ENGINEERD

No. of technicians and engineers
COPRO‐ENGINEERD

30

2,187

2,344

ATMOS

122

134

148

159

159

175

+43.4%+53

VALUE ARK CONSULTING

87

97

108

100

100

109

+25.3%

+22

130

90.6%

93.4%

93.1%

91.7%

76.9%

89.6%

‐

‐1.0pts

79.6%

COPRO‐ENGINEERD

90.7%

93.7%

93.1%

92.0%

80.1%

89.4%

‐1.3pts

79.4%

ATMOS

93.8%

92.4%

93.1%

93.0%

79.1%

93.1%

‐

‐0.7pts

89.4%

VALUE ARK CONSULTING

83.7％

89.0％

94.7％

81.3％

63.3％

90.1％

‐

+6.4pts

69.1%

Sales per engineer (period average)

648

638

650

638

643

619

‐4.6%

‐30

601

Retention rate‐

252

COPRO‐ENGINEERD

649

641

652

639

644

618

‐4.8%

‐31

ATMOS

578

560

600

626

599

622

+7.7%

+44

635

VALUE ARK CONSULTING

593

553

568

606

587

656

+10.6%

+63

552

602

*1. 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.
*2. Retention rate = Number of technicians at the end of the current fiscal year (current quarter) ÷ (Number of technicians at the end of the previous fiscal year (previous quarter) + Number of technicians at theend of the current fiscal year (current quarter)) × 100*3. ATMOS sales per engineer is for dispatched engineers only, excluding subcontracting.

©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

8

This is the KPI analysis of our subsidiaries. Due to a significant increase in the number of
recruits centered on our mainstay COPRO-ENGINEERD, the number of technicalemployees was 3,314, an increase of 38.3% YoY, or an increase of 918 people.
The retention rate was 89.6%, down 1.0 points YoY. The reason is a partial mismatch inassignments due to an increase in the number of recruits at COPRO-ENGINEERD in theconstruction segment and at ATMOS in the mechanical and electrical segment, and thelack of follow-up after the assignments.
In this regard, from the second quarter we are considering strengthening measures tocurb resignations, while achieving the number of recruits as planned or above the plan.
The table on the slide shows the number of recruits, the number of resignations, thenumber of technical employees (end of the period), the retention rate, and the sales pertechnical employee (average during the period) for each subsidiary, so please take a
look.

8

Reference） Construction Technician Dispatching Business KPIs
• The number of new hires rose 109.6% YoY to 614 due to growth in the number of new graduates and young Human Resources hires.
• Some mismatches arise due to growth in hiring of inexperienced employees. In addition to an increase in the number of standby employees,
retirement occurred during the waiting period.
⇒ Cumulative First Quarter s retention rate declined 1.3pts YoY to 89.4%. The utilization rate was 93.0%, down 3.3pts from the previous
fiscal year due to an increase in the number of standby employees.
⇒ In addition to further strengthening the follow‐up system after assignment by Second Quarter, we will proceed with the selection of
assignment partners with an emphasis on retention.
（people）

Recruitment, Turnover and Utilization rate
FYE2022

FYE2023

Full‐year
Total recruited
New graduates
Mid‐career
Turnover total
Net change
Increase due to M&A, etc.
Number of technicians(quarter end)
Utilization rate (period average)

1Q

834
56
778
859
△25
0

2Q

293
54
239
223
+70
+122

3Q
315
0
315
158
+157
0

FY2024
4Q

417
2
415
191
+226
0

Full‐year
447
0
447
240
+207
0

1,472
56
1,416
812
+660
+122

614
154
460
361
+253
0

Full‐year(forecast)
2,120
154
1,966
1,008
+1,112
‐

1Q

1,995

2,187

2,344

2,570

2,777

2,777

3,030

3,889

96.9％

96.3％

97.1％

96.3％

95.7％

96.3％

93.0％

‐

1Q

2Q

4Q

Full‐year

Retention rate
FYE2022
Full‐year
Retention rate
Retention rate (FY accumulative total)
Retention rate (Last twelve months)

69.9％
69.4％
69.4％

FYE2023
90.7％
89.7％
71.8％

93.7％
84.2％
72.3％

3Q
93.1％
79.0％
72.7％

92.0％
74.4％
74.4％

80.1％
74.4％
74.4％

FYE2024
Full‐year(forecast)
89.4％
79.4％
89.2％
‐
75.0％
‐

1Q

*Retention rate = Number of technicians at the end of the current fiscal year (current quarter) ÷ (Number of technicians at the end of the previous fiscal year (previous quarter) + Number of technicians at the end of
the current fiscal year (current quarter)) × 100*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.
©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

9

For reference, we have summarized the KPIs for our core business, which is theconstruction technician dispatching business. One topic is that the number of recruits
increased 109.6% YoY to 614 people due to a significant increase in the recruiting of
new graduates and young inexperienced human resources.
However, some mismatches occurred due to aggressively increasing the recruiting of
inexperienced people. Because of this, the number of employees on standby has
increased, and there have been resignations during the waiting period. As a result, theretention rate for the first quarter was 89.4%, down 1.3 points YoY. In addition, due to anincrease in the number of employees on standby, the utilization rate was 93.0%, down
3.3 points YoY.
Since the cause of this has been clarified, from the second quarter, we will further
strengthen the follow-up system after assignment, proceed with the selection of
assignments with an emphasis on retention, and improve the retention rate, which has
been on a downward trend.
The number of recruits and resignations, the utilization rate and the retention rate areshown in the table on the slide. Please take a look at it when you have the time.

9Reference） Mechanical Design and Development Engineer Dispatching
and Contracting Business KPIs
• Increasing the number of sales and recruitment staff. The number of projects acquired and the number of technicians hired increased, rising
53 YoY (+43.4% YoY) to 175.
• Particular emphasis is being placed on increasing dispatch to industrial machinery such as semiconductors and software.
• The utilization rate remained at almost 100% excluding those who took leave and those who took in‐house training.

Recruitment, Turnover and Utilization rate

（people）

FYE2022

FYE2023

Full‐year（June‐Mar）

1Q(Apr‐June)20

14

Total recruited

2Q(July‐Sep)

FYE2024

3Q(Oct‐Dec)

23

4Q(Jan‐Mar)25

Full‐year

23

Full‐year(forecast)

1Q

85

29

123

New graduates

0

1

０

0

0

1

5

4

Mid‐career

20

13

23

25

23

84

24

119

Turnover total

15

8

11

11

12

42

13

30

Net change
Number of technicians(quarter end)
Utilization rate (period average)

+5

+6

+12

+14

+11

+43

+16

+93

116

122

134

148

159

159

175

252

98.6％

96.9％

96.9％

98.6％

97.5％

97.5％

95.9％

‐

2Q
(July‐Sep)

3Q(Oct‐Dec)

4Q(Jan‐Mar)

Full‐year

Retention rate
FYE2022

FYE2023

Full‐year
1Q（June‐Mar） (Apr‐June)
Retention rate

FYE2024
1Q

Full‐year(forecast)

‐

93.8％

92.4％

93.1％

93.0％

79.1％

93.1％

89.4％

Retention rate (FY accumulative total)

88.9％

93.1%

89.7%

85.3%

81.0％

81.0％

93.7％

‐

Retention rate (Last twelve months)

88.9％

84.7%

85.2%

84.9％

81.0％

81.0％

82.8％

‐

*Retention rate = Number of technicians at the end of the current fiscal year (current quarter) ÷ (Number of technicians at the end of the previous fiscal year (previous quarter) + Number of technicians at the end of
the current fiscal year (current quarter)) × 100*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.
©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

10

These are the KPIs for the mechanical design and development engineer dispatching
and contracting business. We have increased the number of sales and recruiting staff.
The number of job posting requests and the number of recruits increased, and thenumber of engineers rose to 175, an increase of 53 people, or up 43.4% YoY.
In particular, dispatches to the industrial equipment sector, such as semiconductors andsoftware, which are strengthening, are growing significantly. The utilization rate is almost
100%, excluding absences from work and those undergoing in-house training.
The number of recruits and resignations, the utilization rate and the retention rate areshown in the table on the slide.

10

Reference） SES Business KPIs
• We are focusing on operating the "VESCARI IT" website, which was opened in March 2023 as a guide for IT engineers.
• The number of applicants and the number of hirings are trending upward, partly due to the investment in advertising in conjunction with therelease of VESCARI IT.

Recruitment, Turnover and Utilization rate
（people）
FYE2022

FYE2023

Full‐year

1Q

2Q

FYE2024

3Q

4Q

Full‐year

Full‐year(forecast)

1Q

Number of applicants

320

213

408

354

264

1,239

594

‐

Total recruited

16

14

22

17

15

68

21

88

Turnover total

16

17

12

6

23

58

12

58

‐

△3

+10

+11

△8

+10

+9

+30

90

87

97

108

100

100

109

130

100.0％

100.0％

100.0％

100.0％

100.0％

100.0％

100.0％‐Net change
Number of technicians(quarter end)
Utilization rate (period average)* The above figures for VALUE ARK CONSULTING include IT freelance engineers.

Retention rate

（people）
FYE2022

FYE2023

Full‐year
Retention rate

1Q
‐

83.7%

2Q
89.0%

3Q
94.7%

FYE2024
4Q

Full‐year

81.3%

63.3%

1Q
90.1%

Full‐year(forecast)
69.1％* The above figures for VALUE ARK CONSULTING include IT freelance engineers.
*Retention rate = Number of technicians at the end of the current fiscal year (current quarter) ÷ (Number of technicians at the end of the previous fiscal year (previous quarter) +Number of technicians at the end of the current fiscal year (current quarter)) × 100©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

11

These are the KPIs of the SES business. One topic is that we are focused on theoperation of “VESCARI IT”, a project introduction site for IT engineers that opened in
March 2023. The number of applicants and the number of recruits are on the rise, partly
due to concerted investment in advertising expenses in conjunction with the release of“VESCARI IT”.
The number of recruits and resignations, the utilization rate and the retention rate areshown in the table on the slide.

11

SECTION 03

Business Summary©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

1212

Construction Technician Dispatching Business：Major KPIs
Mid‐career hiring
costs

125

282

(Vs. forecast ‐7.1％)(Vs. forecast ‐5.8％)

million yen

40.9％)(YoY＋

Total recruited（incl. new graduates）

614

people109.6％)
2.3％)

Mid‐career hiring costs
per technician◎

thousand yen(YoY‐

24.2％)◎(YoY+(Vs. forecast+◎Retention rate

Number of technicians

89.4％

3,030people(Vs. forecast ‐1.9pts)(Vs. forecast ‐1.8％)(YoY‐

1.3pts)×

38.5％)(YoY+

×※The ◎ is above the plan, 〇 is in line with the plan, and x is below the plan.
※ Retention rate = Number of technicians at the end of the current ﬁscal year (current quarter) ÷ (Number of technicians at the end of the previous fiscal year (previous
quarter) + Number of technicians at the end of the current fiscal year (current quarter)) × 100©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

13

These are the main KPIs of the construction technician dispatching business. From thenumber of recruits on the left side of the slide to the right, it shows a chart that diverges
for each.
The company's self-assessment is indicated by " ", " ", and "×", where " " is above
the plan, " " is in line with the plan, and "×" is below the plan.
In the first quarter, the total number of recruits (including new graduates) was 614, up
109.6% YoY and 2.3% higher than planned. The assessment is " " because it has
achieved more than was planned.
Recruiting costs for mid-career professionals totaled 125 million yen, up 40.9% YoY anddown 7.1% from the plan. As in the previous fiscal year, we are actively investing in
recruiting costs. Considering the internal budget, the recruiting costs are less than thebudget, so the assessment is " ".
The unit price for recruitment of mid-career professionals (recruiting cost per person)
was 282,000 yen, down 24.2% YoY and down 5.8% from the plan. In the first quarter, wewere able to recruit while keeping in mind that we are aiming for the unit price forrecruitment to be around 200,000 yen, so the assessment is " ".
The retention rate was 89.4%, down 1.3 points YoY and down 1.9 points from the plan.
We spent a lot of money on recruiting costs and managed to recruit more than planned,

13

but the retention rate was slightly below the plan, so the assessment is “x”.
Doing an in-house analysis of the causes, we can cite some mismatches due to thesudden increase in recruiting and an inadequate follow-up system. From the second
quarter, which is still in progress, we will make use of these points of introspection, andstrive to improve the retention rate while realizing a significant increase in the number of
recruits.
At the end of the first quarter, the number of technical employees was 3,030, up 38.5%
YoY. On the other hand, it was 1.8% less than the plan, so the assessment is “×”.
We will continue to monitor the unit price for recruitment while significantly increasing thenumber of recruits, which will lead to an improvement in the retention rate. By further
improving the number of technical employees, we hope to increase sales in the second
quarter, the third quarter, and the full fiscal year.

13Construction Technician Dispatching Business：Increase in Mid‐career
Hiring By Strengthening Interviews

Number of hiring
interview

Doubled fromthe previous 1Q

Mid‐career
recruited

Doubled fromthe previous 1Q
460

Main Initiatives
 Introduced an application management system.
Shorten lead times by automating interview settings
 Improving the efficiency of interviews by
introducing interview tools

174

239

 Thorough recruitment process management
 Approximately 50% increase in recruitment staff(compared with the previous First Quarter)

FYE2022

FYE2023

FYE2024

1Q

1Q

1Q

©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

14

I would like to explain the initiatives we are currently focusing on. Currently, although thesales reform has been successful and we have received many orders, if we were toprioritize, it would be recruiting, so we are reexamining things.
As a major initiative, we have introduced an application management system and havesignificantly shortened lead times by automating the setting of interviews. In addition, we
are focusing on improving productivity by boosting the efficiency of interviews throughthe introduction of interview tools and by fine tuning the process.
With regards to thorough review and reinforcement of recruitment process management,
it is no exaggeration to say that we have re-strengthened our efforts, but we are focusing
on process management. The number of recruiters is increasing significantly by about
50% YoY, and we are expanding contact with applicants, that is, the number ofinterviews.
As a result of these efforts, the number of interviews has about doubled YoY. The graphon the right side of the slide shows the change in the number of mid-career professionals
recruited, and we have also recruited 460 people, about twice as many YoY.

14

Construction Technician Dispatching Business： Decrease in unit price formid‐career hires due to strengthening of interview response

Recruiting
expenses

YoY

About 40%
more
YoY

Number of
About 40%
applications

Unit price formid‐career hires
The unit price of mid‐career hires declined
due to an improvement in the hiring rate.

YoY

more

Number ofinterviews

Number of
hires

YoY

‐24.2％
372

Approx.
doubled(thousands of yen)

282

YoY

Approx.
doubledFYE2023

FYE2024

1Q

1Q©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

15

I will explain the recruiting process step by step. The recruiting process is shown on theleft side of the slide. The recruiting costs, number of applications, number of interviews,
and number of recruits are each shown in red as compared to the same period of theprevious year.
We actively invested in recruiting costs, which increased by about 40% YoY. As a result,the number of applicants has increased significantly by about 40% YoY. In addition, thenumber of interviews and the number recruited has about doubled YoY.
In this way, by strengthening the management of each step in the recruiting process, thenumbers for each step in the process increased significantly YoY. However, this does notmean that it is good just because it has grown significantly. There is room for further
improvement in these numbers, and we would like to increase the number of interviews
and the number of recruits in particular.
The graph on the right side of the slide shows the unit price for recruitment of mid-career
professionals, which is the recruiting cost per person. As for the unit price for recruitmentof mid-career professionals, light blue is the first quarter of FYE2023, and blue the firstquarter of FYE2024. By revising the recruiting process and improving the yield rate, it
has decreased from 372,000 yen to 282,000 yen.
From the second quarter onwards, we will continue to strengthen the recruiting process,and while monitoring the number of people who should be recruited in relation to the15

recruiting costs, we would like to keep the unit price for recruitment at the 200,000 yen
level or even lower.

15

Change of Name of Core Subsidiary and Merger of Subsidiary• The name "Construction" will be used to make the content of business easier to imagine, and further raise corporate awareness amongcustomers and job seekers.
• Merged 2 companies acquired through M&A in 2021, ATMOS Co., Ltd., an electrical engineer dispatching business, and VALUE ARKCONSULTING Co., Ltd., an SES/IT engineer. Enhance competitiveness by integrating the electrical and IT fields, expand employment
opportunities for engineers, and strengthen career‐building support.

COPRO‐HOLDINGS. Co., Ltd.
Pure Holding Company

COPRO‐ENGINEERD Co., Ltd.

ATMOS Co., Ltd.

Construction engineer
dispatching business

Machinery and ElectricEngineers dispatching business

VALUE ARK CONSULTING Co., Ltd.
SES/IT Technician dispatching businessChange of company name
(Effective date: October 1, 2023)

Merger and change of company name
(Effective date: October 1, 2023)

COPRO CONSTRUCTION. Co., Ltd.
Construction engineer
dispatching business

Dispatching business for electrical and
SES/IT engineers

COPRO VIETNAM CO., LTD.
Global Human Resources
Business

COPRO TECHNOLOGY. Co., Ltd.

©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

16

This is a notice to all our shareholders and investors. We are reorganizing ourorganization as of October 1st, 2023.
First, we will change the corporate name of COPRO-ENGINEERD, our core subsidiaryin the construction technician dispatching business, to COPRO CONSTRUCTION. By
adding the word “construction” to the company name, we aim to make it easier forcustomers and job seekers to visualize that the business of the company is in theconstruction segment, as well as improve our recognition within the construction industry
and build a new brand.
Second, we have decided to merge two companies. They are ATMOS, a mechanical andelectrical engineer dispatching business that became a subsidiary through M&A in 2021,
and VALUE ARK CONSULTING, which has a SES and IT engineer dispatchingbusiness. The corporate name will be changed to COPRO TECHNOLOGY.
Led by COPRO-HOLDINGS, a pure holding company, we will grow with COPROCONSTRUCTION, a construction technician dispatching business, COPROTECHNOLOGY, a mechanical and electrical engineer, SES and IT engineer dispatchingbusiness, and COPRO VIETNAM, a global human resource business.
For ATMOS and VALUE ARK CONSULTING, which are involved in the mechanical andelectrical field and the IT field, some of the clients are quite close to each other, and themerging of the two companies is expected to bring about great synergies through the16exchange of human resources, such as the ability of human resources who have been
active at ATMOS to play an active role in the IT field. The purpose is also to improve
competitiveness against other companies in the same industry, or to realize faster service
for clients.
We have decided to implement this kind of group reorganization for the purpose of further
expanding employment opportunities and career development for engineers andtechnicians who are working, and those who will be looking for jobs in the future.

16

SECTION 04

FYE2024
Earnings Forecast©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

1717

FYE2024 Consolidated Earnings Forecast Summary
Number of Consolidated
Technicians and Engineers

4,271

million yen

RecordHigh

Non‐GAAP Operating Profit

2,140

million yen(YoY+33.2％)

1,800

24,298people(YoY+40.7％)

Operating Profit

Net sales

RecordHigh

29.3％)(YoY+

RecordHigh

1,167

million yen(YoY+41.2％)

RecordHigh

Profit attributable to ownersof parent

Ordinary Profit

1,870

million yen(YoY+36.2％)

RecordHighmillion yen(YoY+35.0％)

RecordHigh

Point 1

We aim to further accelerate the speed of expanding our size by continuing to invest in growth, such as recruiting costs,
mainly for dispatching construction technicians.

Point 2

An increase in selling and administration expenses due to aggressive investment will be absorbed by an increase in revenue,
and by achieving both growth in our size and profit generation, we expect both sales and profits to reach record highs.

*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.

©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

18

Now I will explain the earnings forecast for FYE2024. There is no change from thepreviously announced forecast.
It is a 40.7% YoY increase in consolidated technical employees to 4,271 people, anincrease in sales of 29.3% YoY to 24,298 million yen, and a rise in operating profit of
36.2% YoY to 1,800 million yen.
Non-GAAP operating profit is seen increasing 33.2% YoY to 2,140 million yen, withordinary profit up 41.2% YoY to 1,870 million yen, and net profit rising 35% YoY to 1,167
million yen, with all reaching record highs.
There are three points. First, we will aim to further accelerate an expansion in scale bycontinuing to invest in growth, such as recruiting costs, mainly for the dispatching of
construction technicians.
Second, while expanding the number of recruits, we will further strengthen our efforts toimprove the retention rate based on the results of the first quarter.
Third, we expect record-high sales and profits by achieving both an expansion in scale
and profit generation, and as for the rise in our selling and administration expenses as
we actively invest, it will be absorbed by the increase in sales.

18

Financial Forecast for FYE2024（million of yen）

FYE2023

FYE2024（forecast）

1st Half

Full‐year

Ratio

YoY

Net sales

8,670

18,791

Ratio
100.0％

1st Half
11,203+29.2％

YoY

Full‐year
24,298100.0％+29.3％

Cost of sales

6,086

13,216

70.3％

8,040

+32.1％

17,23370.9％+30.4％

Gross profit

2,583

5,575

29.7％

3,162

+22.4％

7,065

29.1％

+26.7％

SG&A expenses

2,113

4,253

22.6％

2,667

+26.2％

5,265

21.7％

+23.8％

Operating profit

469

1,321

7.0％

495

+5.3％

1,800

7.4％

+36.2％

Non‐GAAP operating profit*1

613

1,606

8.6％

660

+7.6％

2,140

8.8％

+33.2％

Ordinary profit

472

1,324

7.0％

565

+19.7％

1,870

7.7％

+41.2％

Profit attributable to owners of parent

280

864

4.6％

316

+12.7％

1,167

4.8％

+35.0％

Earnings per share (*2 before stock split) (¥)

30.20

93.09

－

33.82

－

124.60－－Earnings per share (*2 after stock split) (¥)

15.10

46.55

－

16.91

－

62.30

－

－

Number of consolidated technicians andengineers (quarter end)*3

2,575

3,036

－

－

－

4,271

－

+40.7％*1. 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.
*2. A 2‐for‐1 stock split is scheduled to take effect on Sunday, October 1, 2023.
*3. 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.

©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

19

19

Progress of the Medium‐Term Management Plan
• In the main business of construction engineer dispatching, the Company expects to realize the results of the sales and recruitment
reforms it has promoted up to the previous fiscal year, and to shift to the "Profit Generation Phase" that will enter the harvest period
from FYE2024.
• Aim to accelerate organic growth in existing businesses and achieve medium‐term plan performance targets ahead of schedule.
• The company will also actively consider discontinuous growth through M&A that it has not factored into its medium‐term plan.

Non‐GAAP Operating Profit

Consolidated Net Sales（million of yen）

40,000

YoY＋29.3％

Forecast
24,298FYE2022

Results
18,791
17,854

21,870FYE2024

FYE2025 FYE2026 FYE2027

Medium‐term management plan
Results・Forecast

3,900

26,800

Performance
Targets at theTime of
Formulation

FYE2023

5,000
YoY＋33.2％

33,000

YoY＋20.5％

15,589（million of yen）

Medium‐Term Management
Plan Targets

1,841
1,334

FYE2022

Results
1,606

FYE2023

Forecast
2,140
1,995

FYE2024

2,750

Performance
Targets at theTime of
Formulation

FYE2025 FYE2026 FYE2027

Medium‐term management plan
Results・Forecast

Medium‐Term Management
Plan Targets©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

20

Regarding the progress of the Medium-Term Management Plan, since there are no majorchanges from the previous fiscal year, I will briefly explain it again.
In construction technician dispatching, which is our main business, the results of thesales and recruitment reforms that have been promoted up to the previous FY are
expected to bear fruit, and from FYE2024 we will transition to a “profit creation phase”,
which will be a harvesting stage.
We will also accelerate the organic growth of our existing businesses and aim to achieve
our Medium-Term Plan performance targets ahead of schedule. In addition to thisorganic growth, we would like to actively consider intermittent growth through M&A that is
not incorporated into the Medium-Term Plan.
In FYE2027, the final year of the Medium-Term Plan, we are forecasting consolidated
net sales of 40 billion yen and non-GAAP operating profit of 5 billion yen.

20

SECTION 05

FYE2024
Dividend Forecast©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

21

21

Stock Split
Purpose of the stock split

By reducing the amount of our shares per unit of investment, we will create an environment that makes it easier for investors
to invest, expand our investor base, and improve the liquidity of our shares.

Method of stock split
Percentage of stock splits

Split at a rate of 2 shares per share

Record Date

Saturday, September 30, 2023

Effective date

Sunday, October 1, 2023

* The record date above is effectively September 29, 2023 (Friday) for the holiday of the shareholder register administrator.

Before stock split

After stock split

Number of issued shares

10,000,000 shares

20,000,000 shares

Total number of authorized shares

40,000,000 shares

80,000,000 shares©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

22

Now I will explain the dividend forecast for FYE2024. First, we will implement a stock
split. By reducing the price per investment unit of our stock, our purpose is to create anenvironment that makes it easier for investors to invest, which will expand the investor
base, and improve the liquidity of our shares.
I will explain the method of the stock split. The stock split will be conducted at a ratio of 2
shares for 1 share. The base date will be September 30th, 2023, and the effective date
will be October 1st, 2023. Due to this 2-for-1 stock split, the total number of issued
shares and total number of authorized shares before and after the split are shown in thetable at the bottom of the slide.

22

Dividends Forecast
Dividend Policy After the Change
Dividends are the basis for shareholder returns, which we consider to be one of the important management issues, and our basic
policy is to pay stable dividends. We will not reduce dividends, but rather maintain a consolidated dividend payout ratio of 50% or
more, during the period covered by the medium‐term management plan "COPRO Group Build the Future 2027" (from FYE2023 toFYE2027), depending on the profit growth achieved through aggressive investment.

Dividend per share For FYE2024, the dividend per share is forecast to increase by
30.0 yen to 80.0 yen for the full year.
 The consolidated dividend payout ratio is forecast to be 64.2%.
The revised of the year‐end dividend for the year ending March 31, 2024
does not materially change the dividend forecast per share due to therevision accompanying the stock split.

FYE2023(results)
FYE2024(forecast)*1 when stock splits are not considered

FYE2024(revised forecast)*1 after a stock split

Interim

Term end

¥10.0

¥40.0

¥50.0

¥30.0

＊2

＊2

¥50.0

¥25.0
¥30.0 after a stock
split

Total

¥80.0

100 Dividends and Dividend Payout Ratio
95
90
（yen）
85
80
39.2%
75
35.1%
70
26.1%
65
20.2%
60
18.5%
55
50
45
40.0
37.5
40
2.5
35
30.0
30
21.0
25
30.0
25.0
20
1.0
15.0
20.0
15
20.0
10
15.0
10.0
10.0
10.0
5
FYE2018

FYE2019

FYE2020

FYE2021－*1. A 2‐for‐1 stock split is scheduled to take effect on Sunday, October 1, 2023.
*2. Dividends per share without taking into account the stock split.

FYE2022

64.2%
60.0%

53.7%

80.0 ※250.0%
40.0%
30.0%
50.0

50.0 ※220.0%
10.0%
0.0%

40.0

‐10.0%
30.0

10.0
FYE2023

FYE2024‐20.0%‐30.0%(forecast)Commemorative dividend (year‐end)

Ordinary dividend (year‐end)

Ordinary dividend (interim)

Dividend payout ratio (%)*3. The dividend per share before FYE2021 has been retroactively revised to take into account the impactof the one‐to‐two stock split implemented on April 1, 2021.

©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

23This is about the dividend forecast that takes into account the stock split. I will explain
the dividend policy of the COPRO Group again. Dividends are the basis for shareholder
returns, which we consider to be one of the important management issues. Dividends will
not be reduced during the period covered by the Medium-Term Management Plan
"COPRO Group Build the Future 2027" (from FYE2023 to FYE2027). Our basic policy is
to pay stable dividends depending on the profit growth achieved through aggressive
investment, while aiming for a consolidated dividend payout ratio of 50% or more.
For FYE2024 we are forecasting an annual dividend of 80.0 yen, an increase of 30.0 yen
per share. We forecast a consolidated dividend payout ratio of 64.2%.
Dividends per share are shown in the table on the bottom left of the slide. The upper row
is the actual results for FYE2023, the middle row is the forecast for FYE2024 (without
considering the stock split), and the lower row is the revised forecast for FYE2024 (after
the stock split).
For FYE2023, we paid an interim dividend of 10.0 yen per share, a year-end dividend of
40.0 yen, and an annual dividend of 50.0 yen. For FYE2024, (without considering thestock split), we forecast an interim dividend of 30.0 yen, a year-end dividend of 50.0 yen,
and an annual dividend of 80.0 yen.
In the event of the 2-for-1 stock split in FYE2024, the interim dividend will be 30.0 yen
per share as the split would not be implemented yet. We forecast that the year-end

23

dividend will be 25.0 yen after the split.
The right side of the slide shows changes in the dividends and dividend payout ratios byfiscal year, so please use it as a reference.
Greetings from Mr. Kiyokawa
We believe that FYE2024 has got off to a good start, but there are still many issues. Since
it is clear where the problems and issues lie, we will do what we need to do to boost ourbusiness performance, steadily improve what we need to improve, and realize further
business growth and profit generation.
All of our executives and employees will strive to improve our corporate value so that we
can give you good reports in the second quarter, the third quarter, and for the full-year
financial results.
We would like to ask all our shareholders and investors for their continued support of
COPRO-HOLDINGS and the COPRO Group.
This concludes the presentation about the financial results for the first quarter. Thank you
for your attention.

23

Disclaimer and Forward‐Looking Statements
 This document has been prepared by COPRO‐HOLDINGS. Co., Ltd. (the Company ) to assist investors inunderstanding 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 the business 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 and assumptions that involve risks anduncertainties that could cause actual results to differ materially from these statements.
 These risks and uncertainties include general industry, market conditions, general domestic and international
economic conditions such as interest rate and currency exchange rate fluctuations.
 Company undertakes no obligation to update or revise any forward‐looking statements contained in this document,
whether as a result of new information or future events.

Contact
COPRO Holdings Co, Ltd.
Corporate Planning Office,
IR Section

Message us via IR website
https://copro‐h.co.jp/en/contact/©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

24

24