・Image character：Comedian Miyashita Kusanagi
・Group Mascot：Coprou

Fiscal Year Ending March 31, 2023
Financial Results for Nine Month
February 13, 2023

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

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 asannounced on February 13, 2023.

0Table of Contents

01 Summary of the Consolidated Financial Results for Nine Months
02 Major Initiatives in Construction Technician Dispatching Business
03 Alliance Initiatives
04 Appendix©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

1

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 inthis order.

1

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

22

Consolidated Financial Highlights for Nine Months of FYE2023• Net sales increased significantly, mainly in the core business of construction technician dispatching, as thenumber of retirements was suppressed, and the number of hires went generally in line with the forecast. On theother hand, operating profit and other earnings declined due to upfront investment in recruiting expenses.
• The progress rate for full‐year forecast of sales and profit at each stage remained almost on the same level as
the previous fiscal year, and the company made steady progress in terms of the forecast.
（million of yen）

FYE20229 months
Results

FYE2023

Versus FullYear Results

9 months
Results

YoY Change
Percentage
ChangeRatio

FYE2023

AmountChangeFull Year
Forecast

Forecast
Progress
Rate

Net sales

11,44073.4％

13,584100.0％+18.7％+2,144

18,38073.9％

Cost of sales

7,909

73.6％

9,530

70.2％

+20.5％+1,62012,77974.6％

Gross profit

3,530

72.9％

4,054

29.8％

+14.8％

+524

5,601

72.4％

SG&A expenses

2,408

74.7％

3,191

23.5％

+32.5％

+782

4,397

72.6％

Operating profit

1,121

69.2％

862

6.4％

‐23.1％

‐258

1,204

71.6％

Non‐GAAP operating profit*

1,283

69.7％

1,076

7.9％

‐16.2％

‐207

1,521

70.7％

Ordinary profit

1,119

69.1％

866

6.4％

‐22.6％

‐252

1,206

71.8％
71.7％
93.4％

Profit attributable to owners ofparent

619

64.4％

521

3.8％

‐15.9％‐98

727

Number of consolidated technicalemployees (quarter end)*

2,203

－

2,824

－

+28.2%

+621

3,024

*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

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 ofconstruction technician dispatching, as the number of retirements was suppressed, andthe number of hires went generally in line with the forecast. On the other hand, operating
profit and other earnings declined due to upfront investment in recruiting expenses.
The progress rate for full-year forecast of sales and profit at each stage remained almoston the same level as the previous fiscal year, and the company made steady progress interms of the forecast.
In the results for the nine months ended December 31, 2022, sales were ¥13.584 billion,
an increase of 18.7% YoY, operating profit was ¥862 million, a decrease of 23.1% YoY,
and non-GAAP operating profit was a decrease of ¥1.076 billion, a decrease of 16.2%
YoY.

3

Quarterly Consolidated Financial Results• Both sales and the number of technicians in the third quarter increased from the previous quarter. Bothnumbers reached a record high on a quarterly basis.

5,000
4,500
4,038

3,846

4,000

1,957

4,249

4,421

3,500

2,824

3,000

2,574
2,394

3,555
3,500

4,148

4,914

2,203

2,086

2,500

2,201

2,000

3,000
2,500

1,500
1Q

2Q

3Q

4Q

1Q

FYE 2022
2022/3期
Consolidated net sales(million of yen)
QoQ change
No. of consolidated
technical employees(quarter end, people)
QoQ change

2Q

3Q

FYE
2023
2023/3期

3,555

3,846

4,038

4,148

4,249

4,421

4,914

‐5.7％

+8.2％

+5.0％

+2.7％

+2.4％

+4.0％

+11.2％

1,957

2,086

2,203

2,201

2,394

2,574

2,824

+5.6％

‐0.1％

+8.8％

+7.5％

+9.7％

連結売上高
Consolidated

No. of consolidated
連結技術者数(期末)

‐3.1％

+6.6％

net sales

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

4

Quarterly Consolidated Financial Results:
Next, the quarterly consolidated financial results. Both sales and the number oftechnicians 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 third quarter were respectively ¥4.914 billion,
an increase of 11.2% QoQ and 2,824 people, an increase of 9.7% QoQ.

4

SECTION 02
Major Initiatives inConstruction
Technician Dispatching
Business©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

55

KPIs of Construction Technician Dispatching BusinessNo. of Technicians

Job Posting
Requests

No. of Hirings（incl. new grads）

Mid‐Career Hiring
Costs per Technician

2,570people

24,049jobs

1,025people

406thousand yen

◎

◎

〇

△

27.9％)(YoY +

73.2％)(YoY+

57.5％)(YoY +

77.4％)(YoY +

Target Company
Assignment Rate

Contract Renewal
Rate

Permanent Employee
Ratio

Retention Rate

88.1％

82.9％

45.0％

79.0％

2.3pts)(YoY +◎

7.1pts)(YoY +◎

24.3pts)(YoY +〇

4.4pts)(YoY +◎*◎ indicates better than expected or better than the previous FY s performance, ○ indicates the performance is on par with the forecast or the previous FY s performance,△indicates an improving trend, and × indicates the performance is below the forecast or the previous FY s performance.
©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

6

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-thanexpected results, or results that were better than the previous financial performance; “○”indicates that the performance was on par with the forecast or the previous fiscal year
performance; “△” indicates a trend of improvement; and “×” indicates that theperformance fell below the forecast or the previous financial year’s performance.
The number of technicians was 2,570 people, an increase of 27.9% YoY, on which wehave given a double circle in terms of internal evaluation.
There were 24,049 sales projects, an increase of 73.2% YoY, evidencing a remarkable
contribution in an increase of the number of technicians and the top-line. We have givena double circle mark for our internal evaluation results.
The number of hirings (incl. new graduates in April) saw an increase of 1,025 persons or
57.5% YoY, for which we have given a single circle. Currently, we are further reviewing
our recruitment processes and moving along with related reforms while verifying the yield
rate, etc. The number of hirings has remarkably grown, however, further improvement
and upgrading will be of essence.

6

KPIs of Construction Technician Dispatching BusinessNo. of Technicians

Job Posting
Requests

No. of Hirings（incl. new grads）

Mid‐Career Hiring
Costs per Technician

2,570people

24,049jobs

1,025people

406thousand yen

◎

◎

〇

△

27.9％)(YoY +

73.2％)(YoY+

57.5％)(YoY +

77.4％)(YoY +

Target Company
Assignment Rate

Contract Renewal
Rate

Permanent Employee
Ratio

Retention Rate

88.1％

82.9％

45.0％

79.0％

2.3pts)(YoY +◎

7.1pts)(YoY +◎

24.3pts)(YoY +〇

4.4pts)(YoY +◎*◎ indicates better than expected or better than the previous FY s performance, ○ indicates the performance is on par with the forecast or the previous FY s performance,△indicates an improving trend, and × indicates the performance is below the forecast or the previous FY s performance.
©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

7

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 andthus, we have proactively invested heavily in recruiting costs for the current fiscal year.
We are strengthening our corporate efforts by reviewing and improving current
recruitment processes, such as the possibility of shortening the lead time fromapplications to interviews. We have set our company goal at ¥300-thousand level, whichis the mid-career hiring costs per technician, and ideally, we would like to reach the¥200-thousand level goal . Therefore, we gave a triangle mark for the internal evaluation.
The target company assignment rate was 88.1%, an improvement of 2.3 points YoY.
Moving along with sales to target companies, we are making efforts to incline
assignments in major corporations or semi-major corporations set internally as targets.
These efforts have been remarkably effective. We have given a double circle mark forour internal evaluation results.
The contract renewal rate was 82.9%, an improvement of 7.1 point YoY. While building
solid relationships of trust with our contract clients and receiving feedback from them, we
have managed extending contracts. In our internal evaluation, we have given this figure
a double circle mark as the situation is moving along well.

7

KPIs of Construction Technician Dispatching BusinessNo. of Technicians

Job Posting
Requests

No. of Hirings（incl. new grads）

Mid‐Career Hiring
Costs per Technician

2,570people

24,049jobs

1,025people

406thousand yen

◎

◎

〇

△

27.9％)(YoY +

73.2％)(YoY+

57.5％)(YoY +

77.4％)(YoY +

Target Company
Assignment Rate

Contract Renewal
Rate

Permanent Employee
Ratio

Retention Rate

88.1％

82.9％

45.0％

79.0％

2.3pts)(YoY +◎

7.1pts)(YoY +◎

24.3pts)(YoY +〇

4.4pts)(YoY +◎*◎ indicates better than expected or better than the previous FY s performance, ○ indicates the performance is on par with the forecast or the previous FY s performance,△indicates an improving trend, and × indicates the performance is below the forecast or the previous FY s performance.
©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

8

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 technicalemployees will be able to work for long periods of time stably and securely without
undue worries, which will also lead to improvement of the retention rate. In terms of thismatter, further measures will be necessary. Therefore, we gave it the related figure asingle circle in our internal evaluation.
The retention rate was 79.0%, an improvement of 4.4 points YoY. This is an indicator
representing that technical employees are working over a long term and are notresigning. In response to their evaluation, we will further work to increase this indicatorso that they feel like working for COPRO for a long time even more. All of our diverse
measures for it have been successful, and we are steadily achieving significant results.
Therefore, we gave the related figures a double circle in our internal evaluation.

8

Net Sales and Number of Technicians• The number of job posting requests acquired from client companies increased significantly by +73.2% YoY as aresult of raising the level of sales activities.
• The number of hires also grew due to the active investment of recruitment expenses. Sales increased steadily inline with the growth of the number of technicians owing to the interplay between sales and recruiting.

Net Sales

Number of Technicians（million of yen）

（people）

YoY

YoY+788million yen, +20.8％

YoY+1,699million yen, +15.4％+560people, +27.9％
＋226
＋157

＋430

＋198
＋110

＋4

3,794

3,798

3Q

4Q

FYE
2022
22/3期

3,996
1Q

＋192

＋156

12,732

4,583
4,152

2Q
FYE23/3期
2023

11,032
3Q

3Q累計
3Q累計
9 months
FYE
2022
22/3期

FYE
2023
23/3期

＋32

‐15

2,010

1,995

3Q
3Q

4Q
4Q
22/3期
FYE
2022

2,187

1Q
1Q

2,344

2Q
2Q

2,570

3Q
3Q

23/3期
FYE
2023

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

9

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% YoY.
Moreover, the number of hires also significantly grew due to the active investment of
recruitment expenses. Sales increased steadily in line with the growth of the number oftechnicians owing to the interplay between sales and recruiting.
Please take a look at the graph for net sales on the left-hand side of the slide. Net salesof the third quarter of FYE2023 shown in dark blue were ¥4.583 billion, an increase of
20.8%or ¥788 million YoY.
The cumulative total up to the third quarter of FYE2023 was ¥12.732 billion YoY. The
cumulative total of FYE2022 was ¥11.032 billion, an increase of ¥1.699 billion or 15.4%
YoY.
The right-hand side of the slide shows the number of technicians. During the third
quarter of FYE2023, the number of technical employees was 2,570, a notable increaseof 560 persons or 27.9% YoY.

9

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 increased significantly by +60.8% YoY. For the full year, we are aiming
for a record high of 1,417 hires.

No. of Mid‐Career Hires

Active investment on≪Record≫
Full year forecast

1,417people Raising the volume of fundamental
activities by managing andstandardizing indicators of therecruitment process

388million yen

 Increasing the number of recruiting
staff and assigning a dedicatedperson to set up interviews to secure
workforce in the Tokyo, Nagoya, andOsaka areas, where construction
demand is high.

185.3％)(YoY+

Full year
4Q

776人

Full year

Major Initiatives

Mid‐Career
Hiring Costs

778人

957人

9 3Q累計months

YoY+60.8％

604人

595人

Full‐year
progress
rate 78%

Full‐year
progress
rate 76%

Full‐year
progress
rate 68%

FYE
2022
22/3期

FYE 2023
FYE23/3期
2023

FYE
2021
21/3期

Overall Results on Mid‐Career Hiring
Progress was generally in line with forecast,although it was slightly below the previous year.

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

10

Expanding Mid-Career Recruitment:
We prioritized top-line growth by securing workforce in the current fiscal year andactively invested in mid-career hiring costs as an up-front investment. As a result, thenumber of mid-career hires over the last nine months significantly increased by 60.8%
YoY as the far right bar graph on the left-hand side of the slide shows. For the full year,
we are aiming for a record high of 1,417 hires without fail.
Regarding recruiting costs for them, we put heavy upfront investments of ¥388 million ayear, an increase of 185.3% YoY.
As described in the “Major Initiatives,” we are not satisfied with merely spending costs onsuch recruitment. At the same time, we are significantly reviewing our recruitment
processes. We are raising the basic activity level through benchmark management andstandardization of the recruitment processes. We have appointed staff in charge ofsetting up interviews in order to secure human resources in Tokyo, Nagoya, and Osaka,
where construction demand is high.
As a result, in relation to the overall results on mid-career hiring, progress was generally
in line with forecast, while going slightly below the previous year.

10Reducing Mid‐Career Hiring Costs per Technician• To reduce the unit cost of mid‐career hires, which deteriorated in the first half of this FY, we reinforced the process
management and the system of recruiting activities.
As a result, the unit cost improved to near the appropriate level due to an improvement in the applicant‐to‐hireratio.

Mid‐Career Hiring Costs
per Technician

Major Initiatives
 Shorting lead time from application to interview

Gap‐104 thousand yen
1H (Apr to Sep)

 Shifting to have "interviews with the premise of passing"from interviews with the premise of dropping" by appointing
hiring managers with a background in sales and marketing
who have a good understanding of customer needs and by
involving decision makers in the interview process.

450 thousand yen
3Q (Oct to Dec)

346 thousand yen

Full year

277 thousand yen

Overall Results on Hiring Costs
Improved‐applicant‐to‐hire ratio hasbrought the unit cost of recruitment backon track to a generally appropriate level.

FYE
2022
22/3期
22/3期

23/3期

FYE
2023
23/3期
©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

11

Reducing Mid-Career Hiring Costs per Technician:
To reduce the unit cost of mid-career hires, which deteriorated in the first half of thisfiscal year, we reinforced the process management and the system of recruiting activities.
As a result, the unit cost improved to near the appropriate level due to an improvement in
the applicant-to-hire ratio.
Please see the graph for the mid-career hiring costs per technician on the left-hand sideof the slide. The bar graph on the far right shows the results for this third quarter. The
central bar graph shows results during the first half (April through September). Unlike the
mid-career hiring costs during the first half at ¥450 thousand, the third quarter reduced to¥346 thousand, decreasing ¥104 thousand. This means that we have hired relevant
professionals at an appropriate price concerning expended costs.
However, as we hired technical employees at the cost of ¥277 thousand in FYE2022 weshould reduce the current ¥300-thousand level to the ¥200-thousand level goal byreviewing the recruitment process, concerning overall recruitment costs.
We have been able to obtain concrete results from our efforts. In this way, we would liketo further pursue these efforts and hire more technical employees.

11Improving Retention Rate
Enhancement of Follow‐up Support for Technicians
Sales to target
companies

Stable assignment
with contract renewals

Promotion of shift topermanent employment

Target Company
Assignment Rate

Contract Renewal Rate

Permanent
Employment Ratio

88.1％

82.9％

2.3pts)Overall Results on Retention Rate

79.0

24.3pts)(YoY+

Improved by offering an environment where
technicians can work without undue worries
9 months

45.0％

7.1pts)(YoY+％（YoY+

4.4

pts）

(YoY+

 No. of TurnoverFYE2022
22/3期
3Q累計

661

9 months

23/3期
3Q累計
FYE2023

9 months

572

YoY‐89people* Target company assignment rate: Percentage of employees assigned to target companies, such as super general contractors and other major general contractors and subcontractors.

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

12

Improving Retention Rate(1):Now, I will explain the improvement of the retention rate. We focus greatly on theretention 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 first involves“conducting further sales to targeted companies.” Technical employees are able to worksafely and securely by being assigned in major companies. As explained earlier, thetarget company assignment rate has grown to 88.1%. In light of this, we would like tofurther continue enhancing this matter.
The second involves “making stable assignment with contract renewals.” Instead ofchanging working locations and companies in succession with the end of contracts,
personnel can continuously work for the same corporations and at the same work sites.
This leads to higher a retention rate that enables technical employees to work
comfortably. The contract renewal rate was 82.9%, an improvement of 7.1 points YoY.
The increasing contract renewal rate will lead to improvement of productivity for sales
representatives as well. Thus, we will continue increasing the contract renewal rate by
conducting follow-up activities for technical employees and obtain opinions from relevant
companies.

12

Improving Retention Rate
Enhancement of Follow‐up Support for Technicians
Sales to target
companies

Stable assignment
with contract renewals

Promotion of shift topermanent employment

Target Company
Assignment Rate

Contract Renewal Rate

Permanent
Employment Ratio

88.1％

82.9％

2.3pts)Overall Results on Retention Rate

79.0

24.3pts)(YoY+

Improved by offering an environment where
technicians can work without undue worries
9 months

45.0％

7.1pts)(YoY+％（YoY+

4.4

pts）

(YoY+

 No. of TurnoverFYE2022
22/3期
3Q累計

661

9 months

23/3期
3Q累計
FYE2023

9 months

572

YoY‐89people* Target company assignment rate: Percentage of employees assigned to target companies, such as super general contractors and other major general contractors and subcontractors.

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

13

Improving Retention Rate(2):The third involves “promoting shifts to the permanent employment.” We do not believethat 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 permanent employments by setting the company’s standards can be amessage that the company properly evaluates the technicians. As progress of the shifts
has not been good enough, we will further work on it.
As far as progress evaluation for the retention rate is concerned, it was improved througharrangement of environments in which technical employees can stably work for long
periods of time. Such rate was 79.0% in this third quarter, an improvement of 4.4 points
YoY
For reference, we include the number of people resigning in the slide. Please look at thebar graph.

13

SECTION 03

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

14

14

Forming Business Alliance with SpiderPlus & Co.

Overview
We signed a business allianceagreement to promote and reinforce
digital transformation in theconstruction industry.

Formation on
November 14,
2022

What We Do

Progress

Adding value to technicians

Seminar participants

Conducting seminars on
SPIDERPLUS, a construction
digital transformation service,for newly assigned employees
every month

Accelerating introduction of"SPIDERPLUS
Introducing our client companies
and construction sites to
SpiderPlus & Co.

187people

Produce technicians who canutilize "SPIDERPLUS"

On‐site usage rate

20 ％*From November to December 2022

Strive to generate added value onto our technicians through the digitaltransformation seminars by further introducing "SPIDERPLUS" on‐sites.

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

15

Forming a Business Alliance with SpiderPlus & Co.(1):I would like to talk about progresses with initiatives for each alliance. The first initiative isa business alliance with SpiderPlus & Co., which is listed on the Tokyo Stock Exchange
Growth Market. On November 14, 2022, we signed a business alliance agreement topromote and reinforce digital transformation in the construction industry.
For the purpose of further enhancement of productivity at construction sites, we aremoving along with relevant initiatives as needed. That is, we provide our technicalemployees with a training for SPIDERPLUS provided by SpiderPlus& Co. which involves
the construction digital transformation software. After educating such employees, we
dispatch them to relevant sites.
Progress is shown on the far right side of the slide. This is a report from about twomonths after the alliance formation in November 2022. The number of personnel who
had undergone the SPIDERPLUS seminar was 187 people.

15

Forming Business Alliance with SpiderPlus & Co.

Overview
We signed a business allianceagreement to promote and reinforce
digital transformation in theconstruction industry.

Formation on
November 14,
2022

What We Do

Progress

Adding value to technicians

Seminar participants

Conducting seminars on
SPIDERPLUS, a construction
digital transformation service,for newly assigned employees
every month

Accelerating introduction of"SPIDERPLUS
Introducing our client companies
and construction sites to
SpiderPlus & Co.

187people

Produce technicians who canutilize "SPIDERPLUS"

On‐site usage rate

20 ％*From November to December 2022

Strive to generate added value onto our technicians through the digitaltransformation seminars by further introducing "SPIDERPLUS" on‐sites.

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

16

Forming a Business Alliance with SpiderPlus & Co.(2):However, the on-site usage rate was 20%. This means that even after we dispatchedpersonnel 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 quite low in terms ofinternal evaluation. As countermeasures against this problem, we will reinforce sales
activity focusing on the companies who has been already using SPIDERPLUS.
Despite the number of personnel that took the seminar was 187 people as expected,
discovering ways to increase 20% of the on-site usage rate to 40%, 50%, or even up to
70% is a next challenge.
SpiderPlus & Co. is a wonderful company that handles construction digitaltransformation. This business alliance makes it possible to provide our customers withgreat services by dispatching value-added technical employees.

16Forming Business Alliance with Blue innovation Co, Ltd. ①
 We signed a business alliance on February 13, 2023
 We will improve productivity at construction sites by accelerating digitaltransformation application

Supporting construction
sites through dispatching
technicians

On‐site reforming andsolving problems,
using drones and robots

 Overview of the Business Alliance Joint promotion activities for Blue Earth Platform®
(BEP), the base platform provided by Blue innovation, tothe clients of the COPRO Group.

 Hold training for technicians of the COPRO Group to
become a specialist in the use of drones and robots,
specializing in construction and plant engineering.
©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

17

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 digitaltransformation application with Blue innovation Co, Ltd.
Blue innovation is a company which aims reform, productivity improvement, problem
solving in construction sites with the use of drones and robots. Through the combination
with highly qualified personnel of COPRO-ENGINEERD and use of drones and robots ofBlue innovation, we will add extra value to relevant services.
Information on our business alliances is shown at the bottom of the slide. We will sharethe impact of this business alliance with Blue innovation on our company and related
initiatives in each futurefinancial results.

17Forming Business Alliance with Blue innovation Co, Ltd. ②

Company Profile
CompanyBlue innovation Co, Ltd.

Headquarters

4F, Ichigo Hongo Building, 5‐33‐10 Hongo, Bunkyo‐
ku, Tokyo

President and
Takayuki Kumada
CEO
Business

ブルーイノベーション
事業イメージ画像を挿入（ドローンなど）
業務提携で合意した場合、先方へ依頼して入手

We are developing and providing the following
solutions with Blue innovation s proprietary device
integration platform Blue Earth Platform at theircenter. Our platform enables digital transformation
and automation of various tasks by remote (BVLOS)
automatic control and cooperation of multiple drones,
robots and various devices.
・ Digital Transformation of Plants, Factories and Water
Infrastructure Solutions
・Communication or Field Infrastructure Maintenance
Solutions・

Digital Transformation of Distribution and Logistics
Solutions・ Smart Office Solutions
・ Human Resource Development and Training Solutions(From left) Mr. Takayuki Kumada, President of Blue innovation Co.,
Ltd., and Kosuke Kiyokawa, President and Representative Directorof the Company©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

18

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 superior technologies, such as
SpiderPlus and Blue innovation, we will make efforts to add extra value to our personnel
and offer excellent services to our customers.

18

Forming Agreement with Nagoya Future Technical College• On February 10, 2023, we signed an agreement with Nagoya Future Technical College, which operates four
departments: Mechanical and Automotive Engineering, Architectural Design, Biomolecular Engineering, and IT,
regarding collaboration in fostering "human resources" for regional revitalization.
• We will contribute to the facilitation of local construction activities, and the development and revitalization of thelocal community, mainly by fostering next‐generation‐professional human resources in the construction industry
through cooperative and collaborative educational activities.

Outline of the Agreement
 Financial support for students, including the
COPRO Group Scholarship Program" On‐site education program for students
 Training programs for students
 Exchange of information on professional
education and working environment(From left) Mr. Hirofumi Morizono, President of Nagoya Future Technical College, andKosuke Kiyokawa, President and Representative Director of the Company©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

19

Forming Agreement with Nagoya Future Technical College:
The third initiative was to sign an agreement with Nagoya Future Technical College. Ourhead office is located in Nagoya, Aichi. In our home area, there is Nagoya Future
Technical College, which generates personnel familiar with fields of Mechanical andAutomotive Engineering, Architectural Design, Biomolecular Engineering, and IT. We
signed up an agreement for fostering "human resources" for regional revitalization as ofFebruary 10, 2023.
We will contribute to the facilitation of local construction activities, and the development
and revitalization of the local community, mainly by fostering next-general-professional
human resources in the construction industry through cooperative and collaborativeeducational activities.
In relation to the outline of the agreement, we offer financial support for students,
including the “COPRO Group Scholarship Program." Moreover, during the education ofits students, Nagoya Future Technical College will provide such students with on-site
education programs, training programs, and opportunities for the exchange of
information on professional education and working environment. Tsuzuki Educational
Group operates Nagoya Future Technical College.

19

SECTION 04

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

20

20

Financial Forecast for FYE2023• In the current fiscal year, priorities were placed on sales growth so that upfront investments were made namely on
recruiting costs.
• Net sales are expected to increase significantly due to the rise in the number of technicians. Operating profit andother profit are expected to decrease due to upfront investments in recruiting costs, etc.
（million of yen）

FYE2022
Full Year

FYE2023
Full Year
Forecast(Revised on Nov. 14)

YoY

Ratio

Percentage
ChangeAmount Change

Net sales

15,58918,380100.0％+17.9％+2,791

Cost of sales

10,744

12,77969.5％+18.9％+2,034Gross profit

4,844

5,601

30.5％

+15.6％+756

SG&A expenses

3,223

4,397

23.9％

+36.4％+1,173Operating profit

1,621

1,204

6.6％

‐25.7％‐417

Non‐GAAP operating profit*

1,841

1,521

8.3％

‐17.4％‐320

Ordinary profit

1,619

1,206

6.6％

‐25.5％

‐412

962

727

4.0％

‐24.5％‐235

Earrings per share

102.12

78.29

－

－

‐23.83

Dividends per share

40.0

40.0

－

－

Profit attributable to owners of parent(yen)－(people)Number of consolidated technicalemployees (quarter end)*

2,201

3,024

－

+37.4％+823*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.

21

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 oftechnicians and utilization rate, the status of mechanical design and development
technicians of a consolidated subsidiary, and SES business of IT field of a consolidated
subsidiary. However, I would like to omit related explanations and let you check the
papers.
This concludes the briefing about the financial results of COPRO-HOLDINGS for thethird quarter of FYE2023. All of our employees are striving to push on toward achieving
the performance plan for the full year. Your continued support would be deeply
appreciated.

21

Construction Technician Dispatching:Number of Technicians and Utilization Rate
• The number of technicians at the end of the 3Q was 2,570 (+28.8% vs. end of previous FY, +27.9% YoY).
• In addition to the increasing number of hires and the decreasing number of retirements, we took over Hucoss Co.,
Ltd., and absorbed 122 technicians on April 1, 2022.
• The utilization rate for 9 months average was 96.6% (‐0.3pts YoY). It remained at a high level although slightly
below the previous FY s result due to the impact of paid leave due to the infection of COVID‐19.

2,800

95.8%

97.4%

97.0%

97.3%

96.7%

96.6%

97.1%

96.3%

100%

2,700
2,600

90%

（people）

2,570

2,500

80%

Vs. end of
previous FY

2,400

+

2,300

28.8％

70%
2,344
60%

2,200
2,187

2,100

50%
2,000
1,900

2,020

21/3月

1,957

1,978

21/6月

21/9月

2,010
21/12月

1,995
22/3月

No. of
技術者数

technicians

22/4月

22/6月

22/9月

22/12月40%

Utilization
稼働率
Rate

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

22

22

Construction Technician Dispatching:
Recruitment, Turnover and Retention Rate
• The number of hires for the 9 months was 1,025 (+374, +57.5% YoY).
• In addition to a significant increase in the number of applicants due to an active recruitment investment, we put ourefforts to shorten the lead time from application to interview so that the number of interviews increases. The
number of new hires in 3Q reached a record high on a quarterly basis.
• The 3Q retention rate (FY accumulative total) was 79.0%, an improvement of 4.4pts YoY. LTM retention rate for thelatest 1‐year period was 72.7%, an improvement of 0.4pts QoQ.
Recruitment and Turnover（people）
FYE2022
1Q

2Q

3Q

208

FYE2023

9months

213

4Q

651

Full Year

183

834

1Q

2Q

293

3Q

315

9months

417

1,025

Full Year
Forecast
1,501

Hires total
New graduates and second
new graduates
Mid‐career

230
56

0

0

56

0

56

54

2

12

68

84

174

208

213

595

183

778

239

313

405

957

1,417

Turnover total

293

187

181

661

198

859

223

158

191

572

885

Permanent employees

24

25

21

70

24

94

40

49

58

147

‐

Fixed‐term employees

269

162

160

591

174

765

183

109

133

425

‐

‐63

+21

+32

‐10

‐15

‐25

+70

+157

+226

+453

＋616

0

0

0

0

0

0

+122

0

0

+122

+122

1,957

1,978

2,010

2,010

1,995

1,995

2,187

2,344

2,570

2,570

2,733

Net change
Increase due to M&A, etc.
Number of technicians(quarter end)

Retention Rate
FYE2022
1Q

2Q

FYE2023
3Q

4Q

1Q

2Q

3Q

Retention rate (FY
accumulative total)

84.8％

79.3％

74.6％

69.4%

89.7％

84.2％

79.0％

Retention rate (LTM)

68.0％

69.5％

69.2％

69.4%

71.8％

72.3％

72.7％

*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.

23

23

Mechanical Design and Development Engineer Dispatching and Contracting:Number of Engineers and Utilization Rate
• The number of hires expanded in accordance with the enhancement of the company's internal structure since theprevious fiscal year. As a result, the number of engineers increased steadily.
• The utilization rate for 9 months period remained at 97.5%. The utilization rate declined slightly from the previous
fiscal year due to the impact of the in‐house training period associated with the reinforcement of the hiring of
inexperienced workers.
160

99.1%

150

（people）

98.1%

99.1%

98.3%

96.7%

98.6%

100%

148

90%

Vs. end of
previous FY

140

+

80%

27.6％

134

130

120

110

97.0%

70%

60%

122
116
111

108

100
21/6月

21/8月

50%

106
21/11月

40%
22/3月

No.
of
技術者数
engineers

22/4月

22/6月

22/9月

22/12月Utilization
稼働率
Rate

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

24

24Mechanical Design and Development Engineer Dispatching and Contracting:
Recruitment, Turnover and Retention Rate
• In addition to inexperienced personnel, recruitment of experienced ones especially, professionals with
manufacturing background continued working well.
• The retention rate has remained stable and high.
Recruitment and Turnover（people）
FYE2022

Hires total

FYE2023

2Q(June‐Aug)

3Q(Sep‐Nov)

4Q(Dec‐Mar)
15

Full Year

1Q(Apr‐June)

2Q(July‐Sep)

3Q(Oct‐Dec)

14

23

25

2

3

New graduated

0

0

0

0

1

０

0

1

1

Mid‐career

2

3

15

20

13

23

25

61

84

Turnover total

20

Full‐year
Forecast

9months
62

85

5

5

5

15

8

11

11

30

23

Permanent employees

5※

4

3

12

7

7

5

19

‐

Fixed‐term employees

0

1

2

3

1

4

6

11

‐

‐3

‐2

+10

+5

+6

+12

+14

+32

+62

108

106

116

116

122

134

148

148

178

Net change
Number of engineers(quarter end)

*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
FYE2022

Retention rate (FY
accumulative total)
Retention rate (LTM)

2Q(June‐Aug)

3Q(Sep‐Nov)

FYE2023
4Q(Dec‐Mar)

1Q(Apr‐June)

2Q(July‐Sep)

3Q(Oct‐Dec)

95.4%

91.7%

88.9%

93.1%

89.7%

85.3％

92.7%

90.8%

88.9%

84.7%

85.2%

84.9%

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

25

25

SES: Number of Engineers Working and Number of Applicants• The number of applications rose. Steady increased in the number of engineers working due to the sequential
reinforcement of the sales structure.

Number of Engineers Working

Number of Applicants（people）（people）

106

Vs. end of
previous FY
+

17.8％

408

354
96
250

91

90
87

213
85

70

21/10月21/12月

22/3月

22/6月

22/9月

22/12月

22/3期
3Q 3Q

22/3期
4Q 4Q

FYE 2022

23/3期
1Q 1Q

23/3期
2Q 2Q

23/3期
3Q 3Q

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

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26

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 Strategy Promotion Section

Message us via IR website

Telephonehttps://copro‐h.co.jp/en/contact/+81‐120‐253‐066©2023 COPRO‐HOLDINGS. Co., Ltd. All rights reserved.

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